OnBank

OnBank is a division of M&T Bank, N.A., headquartered in Buffalo, NY.  M&T Bank, N.A. and its sister bank, M&T Bank, are separate subsidiaries of their parent company, M&T Bank Corporation. M&T Bank Corporation is one of the 20 largest independent bank holding companies in the U.S., with more than $66 billion in assets as of June 30, 2008.

Although OnBank has no physical branches, the bank provides the same services of a traditional bank branch via email or phone.  The online division of the bank offers competitive rates on money market savings accounts and CDs.  Customers who bank with OnBank are covered by FDIC insurance up to applicable limits.  All deposit accounts opened by a depositor through OnBank and M&T Bank, N.A. are combined to determine the FDIC insurance coverage.  Being two unique financial entities, M&T Bank N.A. and M&T Bank are insured separately as members of the FDIC.

M&T Bank Corporation is one of the 20 largest commercial bank holding companies in the U.S.  M&T Bank was founded in 1856.  M&T provides products and services related to commercial banking, retail banking, business and professional banking, investment banking and mortgage banking.  M&T Bank has more than 700 branches and 1,600 ATM’s across Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia, New Jersey and Washington, D.C. M&T Bank has 279 full-service branches in New York State, 226 full-service branches in Pennsylvania, 150 full-service branches in Maryland, 17 full-service branches in Virginia, 8 full-service branches in Washington, D.C., 2 full-service branches in West Virginia, and 1 full-service branch in Delaware.  In addition, bank customers have access to customer service representatives with innovative telephone and internet banking.

On Oct 21, 2008 M&T Bank Corporation reported its results of operations for the quarter ended September 30, 2008.  Highlights from that release included the following data.

Net income in the recent quarter totaled $91 million.  Taxable-equivalent net interest income totaled $493 million in the third quarter of 2008, 4% higher than $473 million in the year-earlier period.  Growth in average loans and leases, which rose 11% to $48.5 billion in 2008′s third quarter from $43.8 billion in the third quarter of 2007, was the most significant contributor to the improvement.  Such growth was attributable to increases in average outstanding balances in commercial loans, commercial real estate loans and consumer loans, and includes the impact of loans added in the fourth quarter of 2007 as a result of acquisitions. 

Also noteworthy was a 7% increase in average deposits, including a 12% rise in core deposits, from the third quarter of 2007 to the recent quarter.  The growth in deposits also reflects the impact of the late-2007 acquisitions.  The favorable effect of higher loans and deposits on taxable-equivalent net interest income was partially offset by a year-over-year narrowing of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, which declined 26 basis points to 3.39% in 2008′s third quarter from 3.65% in the corresponding period of 2007.  Nevertheless, M&T’s net interest margin in the recent quarter was unchanged from 2008′s second quarter, when taxable-equivalent net interest income was $492 million.

M&T had total assets of $65.2 billion at September 30, 2008, up from $60.0 billion at September 30, 2007.  Loans and leases, net of unearned discount, were $48.7 billion at September 30, 2008, compared with $44.8 billion a year earlier.  Deposits aggregated $42.5 billion at the recent quarter-end, compared with $38.5 billion at September 30, 2007.

Loans past due 90 days or more and accruing interest were $96 million at the end of the recent quarter, compared with $140 million a year earlier.  Included in these past due but accruing amounts were loans guaranteed by government-related entities of $90 million and $70 million at September 30, 2008 and 2007, respectively.  Assets taken in foreclosure of defaulted loans were $76 million at September 30, 2008, up from $22 million at September 30, 2007.  The rise in such assets resulted from higher residential real estate loan defaults and recent quarter additions from residential real estate development projects.

Allowance for Credit Losses.  The allowance for credit losses was $781 million, or 1.60% of total loans, at September 30, 2008, up from $680 million, or 1.52%, a year earlier, and $759 million, or 1.58%, at December 31, 2007.  The increase in the allowance as a percentage of loans reflects the impact of lower valuations of residential real estate and higher levels of borrower delinquencies.  Reflecting the value of collateral securing M&T’s nonperforming loans, the ratio of the allowance for credit losses to nonperforming loans was 110%, 183% and 170% at September 30, 2008, September 30, 2007, and December 31, 2007, respectively.

Core capital is 7.89% and total capital is 11.98%.

This entry was posted on Wednesday, November 19th, 2008 at 8:43 am and is filed under Bank Profiles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.