M&T Bank
Encyclopedia
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
that was founded in 1856 in western New York, and today remains headquartered in Buffalo
Buffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
at One M & T Plaza
One M & T Plaza
One M&T Plaza is an office tower located in Buffalo, New York and home to M&T Bank in Erie County. The 21 floor tubular International style office was built by Minoru Yamasaki with Duane Lyman Associates and completed in 1966. Yamasaki was the architect for the World Trade Center in New York City...
. The parent company, M&T Bank Corporation, had $69 billion in assets as of December 31, 2009, and is one of the twenty largest commercial bank holding companies in the U.S., with over 750 branches located in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
, Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, West Virginia
West Virginia
West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east...
, Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, and Central Florida
Central Florida
Central Florida is a regional designation for the area surrounding Orlando in east central Florida, United States. The area represents the third largest population concentration in Florida, after the South Florida and Tampa Bay regions, respectively....
.
The name M&T is an abbreviation of Manufacturers and Traders Trust Company. The bank owns the original Buffalo Savings Bank (later Goldome, now defunct) building in Fountain Plaza, also located in downtown Buffalo.
In 2003, M&T Bank acquired Allfirst Bank
First Maryland Bancorp
First Maryland Bankcorp was the holding company for the First National Bank of Maryland, acquired by Allied Irish Banks in 1997.In 1999 First Maryland Bankcorp merged with Dauphin Deposit Corporation to form Allfirst Financial....
of Baltimore
Baltimore
Baltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...
, a subsidiary of Allied Irish Banks
Allied Irish Banks
Allied Irish Banks p.l.c. is a major commercial bank based in Ireland.AIB is one of the so called "big four" commercial banks in the state. The bank has one of the largest branch networks in Ireland; only Bank of Ireland fully rivals it. AIB offers a full range of personal and corporate banking...
. Allfirst was acquired by M&T after the John Rusnak
John Rusnak
John Rusnak is a former currency trader at Allfirst bank, then part of AIB Group, in Baltimore, MD, United States. On January 17, 2003 he was sentenced to 7½ years in prison for hiding US$691 million in losses at the bank, after bad bets snowballed in one of the largest ever cases of bank fraud...
currency trading scandal produced a loss of $691 million that was discovered in early 2002. The Allfirst acquisition was M&T's largest, both in terms of assets acquired and as a percentage of M&T's prior asset size.
Allfirst formed after AIB bought Dauphin Deposit Corp. in Harrisburg, Pennsylvania, and merged it with its First Maryland Bank and The York Bank. At the direction of Irish regulators, AIB divested of its 22.% ownership of M&T in the autumn of 2010. Warren Buffett's Berkshire Hathaway
Berkshire Hathaway
Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 44 years,...
currently owns 5.66% of M&T's shares. M&T Bank is the sponsor of the M&T Bank Stadium
M&T Bank Stadium
M&T Bank Stadium is a multi-purpose football stadium located in Baltimore, Maryland. It is the home of the Baltimore Ravens of the National Football League. The stadium is immediately adjacent to Oriole Park at Camden Yards, the home of the Baltimore Orioles. Served by the Hamburg Street station of...
, the current home of the Baltimore Ravens
Baltimore Ravens
The Baltimore Ravens are a professional football franchise based in Baltimore, Maryland.The Baltimore Ravens are officially a quasi-expansion franchise, having originated in 1995 with the Cleveland Browns relocation controversy after Art Modell, then owner of the Cleveland Browns, announced his...
.
During portions of 2010, it was reported that M&T Bank was in merger discussions with Grupo Santander
Grupo Santander
The Santander Group is a banking group centered on Banco Santander, S.A., the largest bank in the Eurozone and one of the largest banks in the world in terms of market capitalisation. According to Forbes Magazine Global 2000, it is the 13th largest public company in the world...
(which owns Sovereign Bank
Sovereign Bank
Sovereign Bank is a wholly owned subsidiary of the Spanish Grupo Santander. Based in Boston, Massachusetts, the bank—whose principal market is in the Northeastern United States—has more than $77 billion in assets, operates 723 retail banking offices, over 2,300 ATMs and employs approximately 8,500...
).
Acquisition history
M&T Bank completed 20 acquisitions from 1987 to 2009. Below is a synopsis of its M&T transactions since 2006.M&T Bank completed the acquisition of 21 Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
branches in Buffalo and Rochester
Rochester, New York
Rochester is a city in Monroe County, New York, south of Lake Ontario in the United States. Known as The World's Image Centre, it was also once known as The Flour City, and more recently as The Flower City...
on July 1, 2006. The branches, employees, and accounts held at those branches all joined M&T Bank.
In 1998 M&T Bank acquired the assets of OnBank in Syracuse, NY.
In July 2007, M&T Bank announced plans to acquire Partners Trust Financial Group, which included 33 branches in Upstate New York
Upstate New York
Upstate New York is the region of the U.S. state of New York that is located north of the core of the New York metropolitan area.-Definition:There is no clear or official boundary between Upstate New York and Downstate New York...
. M&T Bank completed the acquisition on November 30, 2007. One month later in December 2007, M&T completed the purchase of 12 First Horizon National Corporation
First Horizon National Corporation
First Horizon National Corporation is a large banking company based in Memphis, Tennessee, USA. It is the parent company of First Tennessee Bank and FTN Financial....
branches in the greater Washington D.C. and Baltimore markets.
In December 2008, M&T Bank announced its intention to purchase Baltimore-based Provident Bank
Provident Bank of Maryland
Provident Bank of Maryland was a bank in the U.S. state of Maryland. Provident Bank was the largest independent commercial bank headquartered in Maryland, with more than $6.4 billion in assets. Provident operated 143 branches in Maryland, Pennsylvania, Virginia and Washington, DC. Upon entering the...
. The acquisition was fully completed in May 2009.
On August 28, 2009, the Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
(FDIC) seized Bradford Bank, and sold all its deposits and most assets to M&T. M&T and the FDIC agreed to share future losses on $338 million worth of Bradford's assets.
On November 1, 2010, M&T Bank Corp. announced the acquisition of Wilmington Trust
Wilmington Trust
Wilmington Trust was founded on July 8, 1903 as a banking, trust, and safe deposit company by DuPont president T. Coleman du Pont.On November 1, 2010, Wilmington Trust announced a merger with M&T Bank, of Buffalo, NY. The deal values 107-year-old Wilmington Trust at $3.84 a share, or 46 percent...
for $351 million in a stock-for-stock transaction which is scheduled to close in mid-2011.
In 2008 they were voted best bank in the tri-state region of Pennsylvania, Maryland and Virginia
Financial performance
M&T Bank has been profitable every quarter going back to the late 1970s. In the recent financial crisis of 2008 and 2009, M&T was one of only two banks in the S&P 500 that didn't lower its dividend.M&T ranked 496th on the Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
company list in 2007. In 2009, M&T fell to number 535 on the same list, but continues as one of the companies that comprises the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
stock index.