Don, it's hard to believe that it's the end of an era, 17 years at M&T and 40 years in the industry.
Against that backdrop, GAAP-based diluted earnings per common share were $13.80 compared with $9.94 in 2020, up 39%.
Net income was $1.86 billion compared with $1.35 billion in the prior year, improved by 37%.
Those results produced returns on average assets and average common equity of 1.22% and 11.54%, respectively.
Net operating income, which excludes the after-tax impact from the amortization of intangible assets, as well as merger-related expenses, was $1.9 billion, up 39% compared with $1.36 billion in the prior year.
Net operating income per diluted common share was $14.11, compared with $10.02 in 2020, up 41%.
Net operating income for 2021 expressed as a rate of return on average tangible assets and average tangible common shareholders' equity, was 1.28% and 16.8%, respectively.
We increased the common stock dividend for the fifth consecutive year to an annual rate of $4.80 per share per year.
Tangible book value per share grew to $89.80 at the end of 2021, up 11.5% from the end of 2020.
And as we build capital in anticipation of the merger with People's United Financial, our CET1 ratio increased to an estimated 11.4% at the end of 2021 from 10% at the end of 2020.
Diluted GAAP earnings per common share were $3.37 for the fourth quarter of 2021 compared with $3.69 in the third quarter of 2021, and $3.52 in the fourth quarter of 2020.
Net income for the quarter was $458 million compared with $495 million in the linked quarter and $471 million in the year-ago quarter.
On a GAAP basis, M&T's fourth quarter results produced an annualized rate of return on average assets of 1.15% and an annualized return on average common equity of 10.91%.
This compares with rates of 1.28% and 12.16%, respectively, in the previous quarter.
Included in GAAP results in the recent quarter were after-tax expenses from the amortization of intangible assets amounting to $1 million or $0.01 per common share, little change from the prior quarter.
Also included in the quarter's results were merger-related expenses of $21 million, related to M&T's proposed acquisition of People's United Financial.
This amounted to $16 million after tax or $0.12 per common share.
Results for 2021's third quarter included $9 million of such charges amounting to $7 million after tax or $0.05 per common share.
M&T's net operating income for the fourth quarter, which excludes intangible amortization and merger-related expenses was $475 million.
That compares with $504 million in the linked quarter and $473 million in last year's fourth quarter.
Diluted net operating earnings per common share were $3.50 for the recent quarter compared with $3.76 in 2021's third quarter and $3.54 in the fourth quarter of 2020.
Net operating income yielded annualized rates of return on average tangible assets and average tangible common shareholders' equity of 1.23% and 15.98% for the recent quarter.
The comparable returns were 1.34% and 17.54% in the third quarter of 2021.
Included in the recent quarter's GAAP and net operating results, was a $30 million distribution from Bayview Lending Group.
This amounted to $22 million after-tax effect and $0.17 per common share.
Taxable equivalent net interest income was $937 million in the fourth quarter of 2021, marking a decrease of $34 million or 3% from the linked quarter.
The primary driver of that decrease was a $30 million decline in interest income and fees from PPP loans as that portfolio continues to decline following forgiveness of those loans by the Small Business Administration.
The net interest margin decreased by 16 basis points to 2.58%, that compares with 2.74% in the linked quarter.
We estimate that the higher balance of low-yielding cash on deposit at the Federal Reserve diluted the margin by about 9 basis points in the quarter.
The lower income from PPP loans, including declines in the scheduled amortization and accelerated recognition of fees from forgiven loans, contributed about 5 basis points of the margin pressure.
All other factors, including lower benefit from hedges accounted for an estimated 2 basis points of the decline.
Average earning assets increased by $4 billion compared with the third quarter.
This includes a $5.3 billion increase in cash on deposit with the Federal Reserve and a $785 million increase in investment securities.
On average, total loans decreased by $2.1 billion or about 2% compared with the previous quarter.
Commercial and industrial loans declined by $1.4 billion or about 6%.
That reflects a $1.6 billion decline in PPP loans, primarily reflecting loan forgiveness.
Auto floor plan loans to vehicle dealers declined by $58 million on an average basis but grew by $554 million on an end-of-period basis.
All other C&I loans grew about 1% compared with the prior quarter.
Commercial real estate loans declined $830 million or about 2% compared with the third quarter.
Residential real estate loans declined by $89 million or less than 1%, as a result of principal repayments, as well as the ongoing repooling of loans previously purchased from Ginnie Mae servicing pools.
Consumer loans were up over 1%, reflecting growth in indirect auto loans and positive but seasonally slower growth in recreation finance loans, partially offset by lower home equity lines of credit.
Average core customer deposits, which excludes CDs over $250,000, grew by $3.6 billion or 3% compared with the third quarter, primarily reflecting noninterest-bearing products.
Noninterest income totaled $579 million in the fourth quarter compared with $569 million in the prior quarter.
The increase reflects the $30 million distribution from Bayview Lending Group that I previously mentioned.
Mortgage banking revenues were $139 million in the recent quarter compared with $160 million in the linked quarter.
As we noted on the October call, we have begun to retain a significant majority, around 85% of residential mortgage originations, to hold for investment on the balance sheet, which utilizes a portion of the excess liquidity we currently have.
This includes the roughly 20% normally held for investment.
As a result of increasing mortgage rates and the holiday slowdown, residential mortgage loan applications during the most recent quarter amounted to $1.7 billion compared with $2.2 billion in the third quarter.
Of those, we recorded gains on sale on the $191 million that were locked for sale in the fourth quarter versus gain on sale on the $1.1 billion that were locked in the third quarter.
Total residential mortgage banking revenues, including origination and servicing activities, were $91 million in the fourth quarter compared with $110 million in the prior quarter.
Commercial mortgage banking revenues totaled $48 million, encompassing both originations and servicing compared with $50 million in the third quarter.
Recall that in the third quarter's commercial servicing results, they included an $11 million fee for yield maintenance as a result of prepayment of previously securitized commercial mortgage loans.
Trust income was $169 million in the recent quarter, improved from $157 million in the previous quarter.
Service charges on deposits were $105 million in the recent quarter, unchanged from the third quarter.
Operating expenses for the fourth quarter, which exclude the amortization of intangible assets and the merger-related expenses were $904 million compared with $888 million in the third quarter.
Salaries and benefits increased by $5 million from the prior quarter.
Data processing and software increased by $6 million from the third quarter tied in part to higher business volumes, as well as the costs from software licensing agreements.
The $6 million linked quarter increase in advertising and marketing reflects the beginning of the winter marketing campaign combined with incentives paid on new customer accounts.
The efficiency ratio, which excludes intangible amortization, and merger-related expenses from the numerator and securities gains or losses from the denominator was 59.7% in the linked quarter, compared with 57.7% in the third quarter.
The allowance for credit losses declined by $46 million to $1.47 billion at the end of the fourth quarter.
That reflects a $15 million recapture of previous provisions for credit losses, combined with $31 million of net charge-offs in the quarter.
At December 31, the allowance for credit losses as a percentage of loans outstanding was 1.58% compared with 1.62% at September 30.
Annualized net charge-offs as a percentage of total loans were 13 basis points for the fourth quarter, down slightly from 17 basis points in the third quarter.
Non-accrual loans as of December 31 declined to $2.1 billion, a decrease of $182 million from the end of September.
Non-accrual loans, as a percentage of loans outstanding, were 2.22% compared with 2.4% at the end of the prior quarter.
Loans 90 days past due, on which we continue to accrue interest, were $963 million at the end of the recent quarter.
Of those loans, $928 million or 96% were guaranteed by government-related entities.
M&T's common equity Tier 1 ratio was an estimated 11.4% as of December 31 compared with 11.1% at the end of the third quarter.
As previously noted, we increased the quarterly common stock dividend by 9% this quarter to $1.20 per share per quarter, raising the annual dividend rate to $4.80 per share.
We don't expect the $42 billion of cash on the balance sheet at the end of 2021 to endure through 2022.
We expect to do this by replacing maturities and principal amortization and to increase investment securities by an incremental $1 billion by the end of the year.
On the commercial side, PPP loans on our balance sheet amounted to $1.2 billion at year-end.
As noted earlier, we're retaining a large majority of the mortgage loans we originate, which we expect will grow balances by approximately $2.5 billion in 2022, depending on the level of refinance activity.
Offsetting that growth, are $2.8 billion of mortgage loans purchased from Ginnie Mae servicing pools on our balance sheet at the end of 2021, more than half of which we believe will qualify for repooling over the course of 2022.
That should result in a net interest margin, little change from full-year 2021 in the area of 2.75%.
We would need to see short-term interest rates rise by 50 to 75 basis points before we can fully recover the money fund fees we are currently waiving.
Those amount to an annual run rate of approximately $50 million.
Noninterest operating expenses in 2021 grew at an uncharacteristically high rate, rising 5.6% over prior years.
That amount last year was approximately $69 million.
Since that pause, our CET1 ratio has increased by 140 basis points to 11.4%, leaving us positioned well in excess of what we believe we need to run the combined company.

Summary:
Tangible book value per share grew to $89.80 at the end of 2021, up 11.5% from the end of 2020.
Diluted GAAP earnings per common share were $3.37 for the fourth quarter of 2021 compared with $3.69 in the third quarter of 2021, and $3.52 in the fourth quarter of 2020.
Diluted net operating earnings per common share were $3.50 for the recent quarter compared with $3.76 in 2021's third quarter and $3.54 in the fourth quarter of 2020.
Taxable equivalent net interest income was $937 million in the fourth quarter of 2021, marking a decrease of $34 million or 3% from the linked quarter.
That reflects a $15 million recapture of previous provisions for credit losses, combined with $31 million of net charge-offs in the quarter.