UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):		July 12, 2007

M&T BANK CORPORATION

(Exact name of registrant as specified in its charter)

New York

(State or other jurisdiction of incorporation)

1-9861		16-0968385
(Commission File Number)		(I.R.S. Employer Identification No.)

One M&T Plaza, Buffalo, New York		14203
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:		(716) 842-5445

(NOT APPLICABLE)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

		o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
		o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
		o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
		o Pre-commencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02.   Results of Operations and Financial Condition.

On July 12, 2007, M&T Bank Corporation announced its results of operations for the fiscal quarter ended June 30, 2007. The public announcement was made by means of a news release, the text of which is set forth in Exhibit 99 hereto.

The information in this Form 8-K, including Exhibit 99 attached hereto, is being furnished under Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of M&T Bank Corporation under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01.   Financial Statements and Exhibits.

     (c) Exhibits.

Exhibit No.
99		News Release dated July 12, 2007.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX

Exhibit No.
99		News Release dated July 12, 2007.		Filed herewith.

Exhibit 99.1

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		July 12, 2007
MEDIA CONTACT:		C. Michael Zabel (716) 842-5385

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

     BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2007.

     GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles (“GAAP”) for the second quarter of 2007 were $1.95, up from $1.87 in the year-earlier quarter. GAAP-basis net income in the recently completed quarter totaled $214 million, compared with $213 million in the second quarter of 2006. GAAP-basis net income for 2007’s second quarter expressed as an annualized rate of return on average assets and average common stockholders’ equity was 1.49% and 13.92%, respectively, compared with 1.54% and 14.35%, respectively, in the corresponding quarter of 2006.

     Reflecting on M&T’s financial performance in the recently completed quarter, René F. Jones, Executive Vice President and Chief Financial Officer, stated, “In contrast to the first quarter, M&T experienced a 3 basis point improvement in our net interest margin and growth in several noninterest income catagories, including mortgage banking revenues that were consistent with our historical performance. In addition to revenue growth, operating expenses continued to be well-controlled.”

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     For the first six months of 2007, GAAP-basis diluted earnings per share were $3.51, compared with $3.64 in the similar 2006 period. On the same basis, net income for the first half of the year totaled $390 million in 2007 and $415 million in 2006. GAAP-basis net income for the six-month period ended June 30, 2007 expressed as an annualized rate of return on average assets and average common stockholders’ equity was 1.37% and 12.65%, respectively, compared with 1.52% and 14.16%, respectively, in the similar 2006 period.

     Supplemental Reporting of Non-GAAP Results of Operations. Since 1998, M&T has consistently provided supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such expenses are considered by management to be “nonoperating” in nature. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results. Amortization of core deposit and other intangible assets, after tax effect, was $10 million ($.09 per diluted share) in the second quarter of 2007, compared with $7 million ($.06 per diluted share) in the second quarter of 2006. Similar after tax effect amortization charges for the six-month periods ended June 30, 2007 and 2006 were $21 million ($.19 per diluted share) and $15 million ($.13 per diluted share), respectively. The increased amortization in 2007 as compared with the corresponding 2006 periods reflects the June 30, 2006 acquisition of 21 banking offices in Buffalo and Rochester, including $1 billion of deposits and $269 million of

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loans. Expenses related to the acquisition and integration of those banking offices, deposits and loans totaled $2 million, after applicable tax effect, or $.02 per diluted share in the three- and six-month periods ended June 30, 2006. There were no similar expenses in 2007.

     Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets and banking office acquisition-related expenses, were $2.04 in the recent quarter, up 5% from $1.95 in the year-earlier quarter. Net operating income during 2007’s second quarter was $224 million, compared with $222 million in the corresponding 2006 period. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders’ equity, net operating income was 1.65% and 29.35%, respectively, in the recent quarter, compared with 1.69% and 30.02% in the year-earlier quarter.

     Diluted net operating earnings per share for the six-month period ended June 30, 2007 were $3.70, compared with $3.79 in the first six months of 2006. Net operating income for the first half of 2007 was $411 million, compared with $433 million in the similar 2006 period. For the first two quarters of 2007, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.53% and 26.71%, respectively, compared with 1.67% and 29.67% in the first half of 2006.

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     Reconciliation of GAAP and Non-GAAP Results of Operations. A reconciliation of diluted earnings per share and net income with diluted net operating earnings per share and net operating income follows:

		Three months ended								Six months ended
		June 30								June 30
		2007				2006				2007				2006
		(in thousands, except per share)
Diluted earnings per share		$	1.95				1.87				3.51				3.64
Amortization of core deposit and other intangible assets(1)			.09				.06				.19				.13
Merger-related expenses(1)			—				.02				—				.02
Diluted net operating earnings per share		$	2.04				1.95				3.70				3.79
Net income		$	214,169				212,573				390,142				415,490
Amortization of core deposit and other intangible assets(1)			10,021				6,921				21,210				14,860
Merger-related expenses(1)			—				2,344				—				2,344
Net operating income		$	224,190				221,838				411,352				432,694

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     Reconciliation of Total Assets and Equity to Tangible Assets and Equity. A reconciliation of average assets and equity with average tangible assets and average tangible equity follows:

		Three months ended								Six months ended
		June 30								June 30
		2007				2006				2007				2006
		(in millions)
Average assets		$	57,523				55,498				57,366				55,303
Goodwill			(2,909	)			(2,909	)			(2,909	)			(2,908	)
Core deposit and other intangible assets			(223	)			(107	)			(232	)			(109	)
Deferred taxes			24				40				26				41
Average tangible assets		$	54,415				52,522				54,251				52,327
Average equity		$	6,172				5,940				6,221				5,917
Goodwill			(2,909	)			(2,909	)			(2,909	)			(2,908	)
Core deposit and other intangible assets			(223	)			(107	)			(232	)			(109	)
Deferred taxes			24				40				26				41
Average tangible equity		$	3,064				2,964				3,106				2,941

     Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $467 million in the second quarter of 2007, up 3% from $451 million in the year-earlier period. Growth in average loans and leases, which rose 6% to $43.6 billion in the recent quarter from $41.0 billion in the second quarter of 2006, was the most significant contributor to the improvement. Such growth was attributable to average outstanding balance increases in commercial loans, commercial real estate loans and residential real estate loans. Net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, was 3.67% in the recent quarter, compared with 3.66% in the corresponding quarter of 2006. The recent quarter’s net interest margin was also improved from 3.64% in 2007’s initial quarter.

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     Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $30 million in the second quarter of 2007, up from $17 million in the year-earlier quarter. Net charge-offs of loans were $22 million during the recent quarter, compared with $10 million in the second quarter of 2006. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .20% and .10% in the second quarter of 2007 and 2006, respectively. With regard to credit, Mr. Jones noted, “Consistent with our expectations, loan charge-off rates have risen although they are still well below historical norms.”

     Loans classified as nonperforming totaled $296 million, or .68% of total loans at June 30, 2007, compared with $156 million or .38% a year earlier, $224 million or .52% at December 31, 2006 and $273 million or .63% at March 31, 2007. Contributing to the increase in nonperforming loans from March 31, 2007 was the addition of a $34 million loan to a residential home builder and developer in the Mid-Atlantic region. Loans past due 90 days or more and accruing interest were $135 million at the end of the recent quarter, compared with $101 million at June 30, 2006. Included in these past due but accruing amounts were loans guaranteed by government-related entities of $70 million and $79 million at June 30, 2007 and 2006, respectively. Assets taken in foreclosure of defaulted loans were $18 million at June 30, 2007, compared with $14 million a year earlier.

     Allowance for Credit Losses. The allowance for credit losses totaled $668 million, or 1.53% of total loans, at June 30, 2007, compared with $646 million, or 1.55%, a year earlier and $650 million, or 1.51%, at December 31, 2006. The decline in the allowance as a percentage of loans from June 30, 2006 to the recent quarter-end reflects increased holdings of residential

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real estate loans in the loan portfolio. In general, M&T experiences lower charge-offs on residential real estate loans than on most other loan types. The ratio of M&T’s allowance for credit losses to nonperforming loans was 226%, 414% and 290% at June 30, 2007, June 30, 2006 and December 31, 2006, respectively.

     Noninterest Income and Expense. Noninterest income in the second quarter of 2007 totaled $283 million, an increase of 8% from $263 million in the year-earlier quarter. Contributing to the increase were higher deposit account service charges, revenues from providing brokerage, trust and corporate advisory services, and $8 million relating to M&T’s pro-rata portion of the operating results of Bayview Lending Group, LLC (“BLG”), a privately-held commercial mortgage lender in which M&T invested on February 5, 2007. Including expenses associated with M&T’s investment in BLG, most notably interest expense, that investment added approximately $2 million (after tax effect) to M&T’s net income in the second quarter of 2007. BLG specializes in originating, securitizing and servicing small balance commercial real estate loans in the United States, and to a lesser extent in Canada and the United Kingdom.

     Noninterest expense in the second quarter of 2007 aggregated $393 million, compared with $377 million in the second quarter of 2006. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $16 million in 2007 and $11 million in 2006, and banking office acquisition-related expenses of $4 million in 2006. The increased amortization and the acquisition-related expenses reflect M&T’s June 30, 2006 transaction to acquire 21 banking offices in Western New York. Exclusive of these nonoperating expenses, noninterest operating expenses were

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$376 million in the recent quarter, compared with $362 million in the second quarter of 2006. Higher salaries expense in the recent quarter as compared with the second quarter of 2006 was the largest contributor to the increase in noninterest operating expenses. During the recent quarter, the allowance for impairment of capitalized residential mortgage servicing rights was reduced by $5 million, compared with a similar reversal of $8 million in the second quarter of 2006. Those reversals reduced noninterest operating expenses and resulted from higher interest rate environments at the end of the respective quarters as compared with the immediately preceding quarter-ends.

     The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio improved to 50.2% in the second quarter of 2007 from 50.7% in the year-earlier period.

     Balance Sheet. M&T had total assets of $57.9 billion at June 30, 2007, up from $56.5 billion at June 30, 2006. Loans and leases, net of unearned discount, rose 5% to $43.7 billion at the recent quarter-end from $41.6 billion a year earlier. Deposits were $39.4 billion at June 30, 2007, compared with $38.5 billion at June 30, 2006. Total stockholders’ equity was $6.2 billion at June 30, 2007, representing 10.67% of total assets, compared with $6.0 billion or 10.62% a year earlier. Common stockholders’ equity per share was $57.59 and $54.01 at June 30, 2007 and 2006, respectively. Tangible equity per common share was $28.66 at June 30, 2007, compared with $25.55 at June 30, 2006. In the calculation of tangible equity per common share, stockholders’ equity is reduced by the carrying values of goodwill and core

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deposit and other intangible assets, net of applicable deferred tax balances, which aggregated $3.1 billion and $3.2 billion at June 30, 2007 and 2006, respectively.

     During the recent quarter, M&T repurchased 1,978,000 shares of common stock at an average cost per share of $109.77 under a plan authorized in February 2007 by M&T’s Board of Directors allowing for the purchase of up to 5,000,000 shares of common stock. During the first half of 2007, M&T repurchased 3,714,800 shares of its common stock pursuant to authorized repurchased plans (including 1,696,300 shares that were repurchased under a previous authorization that was completed in March 2007) at an average cost of $114.41 per share.

     Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss second quarter financial results today at 10:00 a.m. Eastern Daylight Saving Time. Those wishing to participate in the call may dial 877-780-2276. International participants, using any applicable international calling codes, may dial 973-582-2700. Callers should reference M&T Bank Corporation or conference ID# 8942628. The conference call will be webcast live on M&T’s website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Friday, July 13, 2007 by calling 877-519-4471, or 973-341-3080 for international participants, and by making reference to ID# 8942628. The event will also be archived and available by 3:00 p.m. today on M&T’s website at http://ir.mandtbank.com/conference.cfm.

     M&T is a bank holding company whose banking subsidiaries, M&T Bank and M&T Bank, National Association, operate branch offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia.

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     Forward-Looking Statements. This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T’s business, management’s beliefs and assumptions made by management. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

     Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and required capital levels; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings; continued availability

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of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries’ future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

     These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

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Financial Highlights

		Three months ended												Six months ended
Amounts in thousands,		June 30												June 30
except per share		2007				2006				Change				2007				2006				Change
Performance
Net income		$	214,169				212,573				1	%		$	390,142				415,490				-6	%
Per common share:
Basic earnings		$	1.98				1.91				4	%		$	3.59				3.73				-4	%
Diluted earnings			1.95				1.87				4				3.51				3.64				-4
Cash dividends		$	.60				.60				—			$	1.20				1.05				14
Common shares outstanding:
Average — diluted (1)			109,919				113,968				-4	%			111,046				114,157				-3	%
Period end (2)			107,230				111,086				-3				107,230				111,086				-3
Return on (annualized):
Average total assets			1.49	%			1.54	%							1.37	%			1.52	%
Average common stockholders’ equity			13.92	%			14.35	%							12.65	%			14.16	%
Taxable-equivalent net interest income		$	466,884				451,254				3	%		$	922,434				903,011				2	%
Yield on average earning assets			6.95	%			6.63	%							6.94	%			6.55	%
Cost of interest-bearing liabilities			3.87	%			3.56	%							3.88	%			3.42	%
Net interest spread			3.08	%			3.07	%							3.06	%			3.13	%
Contribution of interest-free funds			.59	%			.59	%							.60	%			.57	%
Net interest margin			3.67	%			3.66	%							3.66	%			3.70	%
Net charge-offs to average total net loans (annualized)			.20	%			.10	%							.18	%			.13	%
Net operating results (3)
Net operating income		$	224,190				221,838				1	%		$	411,352				432,694				-5	%
Diluted net operating earnings per common share			2.04				1.95				5				3.70				3.79				-2
Return on (annualized):
Average tangible assets			1.65	%			1.69	%							1.53	%			1.67	%
Average tangible common equity			29.35	%			30.02	%							26.71	%			29.67	%
Efficiency ratio			50.18	%			50.70	%							52.53	%			51.53	%

		At June 30
Loan quality		2007				2006				Change
Nonaccrual loans		$	282,133				140,626				101	%
Renegotiated loans			13,706				15,399				-11
Total nonperforming loans		$	295,839				156,025				90	%
Accruing loans past due 90 days or more		$	134,906				101,001				34	%
Nonperforming loans to total net loans			.68	%			.38	%
Allowance for credit losses to total net loans			1.53	%			1.55	%

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Condensed Consolidated Statement of Income

		Three months ended												Six months ended
		June 30												June 30
Dollars in thousands		2007				2006				Change				2007				2006				Change
Interest income		$	878,176				812,911				8	%		$	1,739,225				1,590,183				9	%
Interest expense			416,264				366,298				14				826,886				696,544				19
Net interest income			461,912				446,613				3				912,339				893,639				2
Provision for credit losses			30,000				17,000				76				57,000				35,000				63
Net interest income after provision for credit losses			431,912				429,613				1				855,339				858,639				—
Other income
Mortgage banking revenues			35,546				41,565				-14				49,419				76,076				-35
Service charges on deposit accounts			104,626				95,549				9				199,213				184,425				8
Trust income			37,550				34,757				8				74,523				68,553				9
Brokerage services income			16,654				14,481				15				31,866				29,205				9
Trading account and foreign exchange gains			6,963				6,168				13				13,186				12,674				4
Gain on bank investment securities			260				236				—				1,323				294				—
Equity in earnings of Bayview Lending Group LLC			8,128				—				—				5,700				—				—
Other revenues from operations			73,390				69,846				5				144,370				144,306				—
Total other income			283,117				262,602				8				519,600				515,533				1
Other expense
Salaries and employee benefits			224,700				217,162				3				461,454				441,244				5
Equipment and net occupancy			41,099				42,527				-3				83,945				85,929				-2
Printing, postage and supplies			8,984				8,072				11				17,890				16,639				8
Amortization of core deposit and other intangible assets			16,457				11,357				45				34,813				24,385				43
Other costs of operations			101,411				97,879				4				193,586				190,803				1
Total other expense			392,651				376,997				4				791,688				759,000				4
Income before income taxes			322,378				315,218				2				583,251				615,172				-5
Applicable income taxes			108,209				102,645				5				193,109				199,682				-3
Net income		$	214,169				212,573				1	%		$	390,142				415,490				-6	%

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M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

		June 30
Dollars in thousands		2007				2006				Change
ASSETS
Cash and due from banks		$	1,301,894				1,572,863				-17	%
Interest-bearing deposits at banks			6,954				14,923				-53
Federal funds sold and agreements to resell securities			334,924				16,649				—
Trading account assets			152,410				208,291				-27
Investment securities			6,982,323				7,903,142				-12
Loans and leases, net of unearned discount			43,743,822				41,599,461				5
Less: allowance for credit losses			668,138				645,851				3
Net loans and leases			43,075,684				40,953,610				5
Goodwill			2,908,849				2,908,849				—
Core deposit and other intangible assets			215,897				290,847				-26
Other assets			2,890,134				2,637,914				10
Total assets		$	57,869,069				56,507,088				2	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	7,477,576				8,099,083				-8	%
Other deposits at U.S. offices			25,330,140				27,637,294				-8
Deposits at foreign office			6,610,919				2,777,306				138
Total deposits			39,418,635				38,513,683				2
Short-term borrowings			2,933,081				5,304,814				-45
Accrued interest and other liabilities			897,249				953,858				-6
Long-term borrowings			8,444,797				5,734,509				47
Total liabilities			51,693,762				50,506,864				2
Stockholders’ equity (1)			6,175,307				6,000,224				3
Total liabilities and stockholders’ equity		$	57,869,069				56,507,088				2	%

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Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates

		Three months ended																				Six months ended
		June 30																				June 30
Dollars in millions		2007								2006								Change in					2007								2006							Change in
		Balance				Rate				Balance				Rate				balance					Balance				Rate				Balance				Rate			balance
ASSETS
Interest-bearing deposits at banks		$	9				3.12	%			16				2.85	%			-45	%		$	8				3.33	%			13				2.91	%			-37	%
Federal funds sold and agreements to resell securities			448				6.03				30				5.36				—				377				6.18				31				5.12				—
Trading account assets			67				1.40				103				2.94				-35				60				1.15				100				2.85				-40
Investment securities			6,886				5.01				8,314				4.81				-17				7,049				5.03				8,349				4.76				-16
Loans and leases, net of unearned discount
Commercial, financial, etc			12,155				7.23				11,274				7.04				8				11,955				7.25				11,155				6.85				7
Real estate — commercial			15,578				7.45				14,947				7.22				4				15,526				7.37				14,813				7.15				5
Real estate — consumer			5,875				6.49				4,860				6.29				21				5,907				6.48				4,731				6.23				25
Consumer			9,964				7.47				9,899				6.99				1				9,956				7.45				10,064				6.89				-1
Total loans and leases, net			43,572				7.27				40,980				7.01				6				43,344				7.27				40,763				6.93				6
Total earning assets			50,982				6.95				49,443				6.63				3				50,838				6.94				49,256				6.55				3
Goodwill			2,909								2,909								—				2,909								2,908								—
Core deposit and other intangible assets			223								107								109				232								109								113
Other assets			3,409								3,039								12				3,387								3,030								12
Total assets		$	57,523								55,498								4	%		$	57,366								55,303								4	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	453				.91				438				.71				3	%		$	445				.99				423				.68				5	%
Savings deposits			15,027				1.63				14,254				1.34				5				14,881				1.65				14,294				1.29				4
Time deposits			10,523				4.73				12,699				4.39				-17				11,087				4.74				12,287				4.22				-10
Deposits at foreign office			3,706				5.19				3,598				4.88				3				3,711				5.20				3,491				4.66				6
Total interest-bearing deposits			29,709				3.16				30,989				2.99				-4				30,124				3.22				30,495				2.85				-1
Short-term borrowings			5,555				5.31				4,326				4.97				28				5,206				5.31				4,440				4.73				17
Long-term borrowings			7,905				5.52				5,930				5.51				33				7,608				5.55				6,111				5.35				25
Total interest-bearing liabilities			43,169				3.87				41,245				3.56				5				42,938				3.88				41,046				3.42				5
Noninterest-bearing deposits			7,339								7,446								-1				7,380								7,509								-2
Other liabilities			843								867								-3				827								831								—
Total liabilities			51,351								49,558								4				51,145								49,386								4
Stockholders’ equity			6,172								5,940								4				6,221								5,917								5
Total liabilities and stockholders’ equity		$	57,523								55,498								4	%		$	57,366								55,303								4	%
Net interest spread							3.08								3.07												3.06								3.13
Contribution of interest-free funds							.59								.59												.60								.57
Net interest margin							3.67	%							3.66	%											3.66	%							3.70	%

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