M&T Bank is the second-highest performing large bank in the country based on last year’s profitability, capital strength and asset quality, according to a new report.
Buffalo’s largest deposit-taker was ranked No. 2 among banks with more than $50 billion in assets in Bank Director magazine’s 2013 Bank Performance Scorecard. It was topped by Ohio’s Huntington Bancshares Inc., which moved up one spot from the 2012 report.
According to the report, M&T (NYSE: MTB) had a return on assets of 1.4 percent and a return on average equity of 11.55 percent. Its tangible equity made up 7.17 percent of tangible assets, while the ratio of nonperforming loans to total loans was 2 percent.
The magazine said M&T “never experienced the degree of distress that many other large regional banks did” during the recent recession, but instead significantly investing during the downturn. Between 2009 and 2011, the bank acquired three financial institutions, including the high-profile Wilmington Trust Corp. wealth advisory firm in Delaware.
M&T is among 289 banks included in the 2013 Bank Performance Scorecard. The report categorizes publicly-traded banks based on asset size and determines the rankings based on 2012 calendar year data such as core return on average assets, the ratio of tangible common equity to tangible assets and the ratio of net charge-offs to average loans.
The banks then receive a numerical score from highest to lowest, depending on their individual performance. Those with lower scores are considered to be high performers.
M&T isn’t the only local bank on the list. First Niagara Financial Group Inc., the Buffalo-headquartered parent of First Niagara Bank N.A., is ranked No. 72 among publicly-traded banks with assets between $5 billion and $50 billion.
Other publicly-held banks with a Western New York presence appeared on the scorecard. KeyCorp, parent of KeyBank N.A, one of the top five largest banks in Western New York, trailed M&T by a few spots to gain the No. 4 position, while Community Bank System Inc, based in the Syracuse suburb of DeWitt, captured the No. 22 spot among mid-sized banks.
Deposit-wise, Community Bank is the eighth-largest bank in the region.
Kline, A. ( 2013 August 13) Bank publication gives M&T high marks. Business First. Retrieved form http://www.bizjournals.com/buffalo