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

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 April 19, 2010, M&T Bank Corporation announced its results of operations for the quarter ended March 31, 2010. 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.

     (d) Exhibits.

Exhibit No.
99		News Release dated April 19, 2010.

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 April 19, 2010. Filed herewith.

Exhibit 99

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		April 19, 2010
MEDIA CONTACT:		C. Michael Zabel (716) 842-5385

M&T BANK CORPORATION ANNOUNCES FIRST QUARTER PROFITS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2010.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the first quarter of 2010 rose to $1.15, up 135% from $.49 in the first quarter of 2009 and 11% higher than $1.04 in the final 2009 quarter. GAAP-basis net income in the recently completed quarter totaled $151 million, compared with $64 million in the year-earlier quarter and $137 million in the fourth quarter of 2009. GAAP-basis net income for the initial quarter of 2010 expressed as an annualized rate of return on average assets and average common stockholders’ equity was .89% and 7.86%, respectively, improved from .40% and 3.61%, respectively, in the initial quarter of 2009 and from .79% and 7.09%, respectively, in the fourth quarter of 2009.

Commenting on the recent quarter’s performance, René F. Jones, Executive Vice President and Chief Financial Officer, noted, “M&T posted strong financial results in the first quarter, led by lower credit costs and further widening of our net interest margin. Average core deposits were up again for this period, rising an annualized 6% from the fourth quarter of last year. Our tangible common equity ratio rose significantly from the 2009 year-end, up

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M&T BANK CORPORATION

30 basis points to 5.43%. The results illustrate how our fundamental business philosophy of offering banking services to consumers and businesses in our local communities, of prudent underwriting based on local knowledge and of making acquisitions only when and where they make sense has never been more relevant.”

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides 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. Reconciliations of GAAP to non-GAAP measures are provided herein on page 17.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related expenses, increased for the fourth consecutive quarter, aggregating $1.23 in the recent quarter, up from $.59 and $1.16 in the first and fourth quarters of 2009, respectively. Net operating income for the quarter ended March 31, 2010 rose to $161 million, improved from $75 million and $151 million in the quarters ended March 31, 2009 and December 31, 2009, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common stockholders’ equity, net operating income was 1.00% and 17.34%, respectively,

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M&T BANK CORPORATION

in the first quarter of 2010, up from .50% and 9.36% in the initial quarter of 2009 and .92% and 16.73% in the final 2009 quarter.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $562 million in the first quarter of 2010, compared with $453 million in the year-earlier quarter and $565 million in the final quarter of 2009. The significant improvement from 2009’s initial quarter reflects a 59 basis point widening of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, and a higher level of average earning assets, which rose $2.8 billion or 5% to $60.3 billion from $57.5 billion in the first quarter of 2009. The net interest margin was 3.78% in the recent quarter, compared with 3.19% in the first 2009 quarter. The most significant factors for the higher net interest margin were lower interest rates paid on deposits and long-term borrowings. The higher earning asset level in the recent quarter resulted from the impact of assets obtained in the 2009 acquisitions related to Provident Bankshares Corporation (“Provident”)and Bradford Bank (“Bradford”), which totaled approximately $5.5 billion at the respective acquisition dates. Net interest margin in the recent quarter improved 7 basis points from 3.71% in last year’s fourth quarter.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $105 million in the first quarter of 2010, down from $158 million and $145 million in the year-earlier quarter and in the fourth quarter of 2009, respectively. Net charge-offs of loans during the recent quarter were $95 million, down from $100 million in the initial quarter of 2009 and $135 million in the final 2009 quarter. Expressed as an annualized percentage of

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M&T BANK CORPORATION

average loans outstanding, net charge-offs were .74% and .83% in the first quarters of 2010 and 2009, respectively, and 1.03% in 2009’s final quarter.

Reflecting the impact of the poor economic environment on businesses and consumers, loans classified as nonaccrual totaled $1.34 billion, or 2.60% of total loans at March 31, 2010, compared with $1.33 billion or 2.56% at December 31, 2009 and $1.00 billion or 2.05% at March 31, 2009. During the recent quarter, an increase in loans obtained in the Provident and Bradford transactions classified as nonaccrual was largely offset by a decline in nonaccrual loans associated with the legacy M&T portfolio. Assets taken in foreclosure of defaulted loans were $95 million at each of March 31, 2010 and December 31, 2009, compared with $100 million at March 31, 2009.

Loans past due 90 days or more and accruing interest totaled $203 million at the end of the recently completed quarter, including loans guaranteed by government-related entities of $195 million. Such past due loans were $143 million and $208 million at March 31, 2009 and December 31, 2009, respectively, including $127 million and $193 million of government guaranteed loans at those respective dates.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. Reflecting those analyses, the allowance totaled $891 million at March 31, 2010, increased from $846 million a year earlier and $878 million at December 31, 2009. Beginning in 2009, GAAP requires that expected credit losses associated with loans obtained in an acquisition be reflected in the estimation of loan fair value as of each respective acquisition date and prohibits

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M&T BANK CORPORATION

any carryover of the acquired entity’s allowance for credit losses. Excluding loans obtained in the Provident and Bradford acquisition transactions, the allowance-to-legacy loan ratio increased to 1.86% at March 31, 2010 from 1.73% at March 31, 2009. That same ratio was 1.83% at December 31, 2009.

Noninterest Income and Expense. Noninterest income aggregated $258 million in the first quarter of 2010, compared with $232 million and $266 million in the first and fourth quarters of 2009, respectively. Reflected in those amounts were losses from investment securities of $26 million, $32 million and $34 million, respectively, each predominantly due to other-than-temporary impairment charges related to certain of M&T’s privately issued collateralized mortgage obligations held in the available-for-sale investment securities portfolio. Because those investment securities were previously reflected at fair value on the consolidated balance sheet, the impairment charges did not reduce stockholders’ equity.

Excluding gains and losses from investment securities, noninterest income of $284 million in the recently completed quarter was up 8% from $264 million in the initial quarter of 2009. Contributing to that rise were service charges on acquisition-related deposit accounts and higher credit-related fees, partially offset by lower mortgage banking revenues. Noninterest income in the fourth quarter of 2009, also excluding gains and losses from investment securities, totaled $300 million. The decline in such income during the recent quarter as compared with the final 2009 quarter was due, in part, to lower service charges on deposit accounts and mortgage banking revenues.

Noninterest expense in the first quarter of 2010 aggregated $489 million, compared with $438 million and $478 million in the first

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M&T BANK CORPORATION

and fourth quarters of 2009, respectively. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of these expenses, noninterest operating expenses were $473 million in the recently completed quarter, $421 million in the first quarter of 2009 and $455 million in the final 2009 quarter. The higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was due largely to the operations obtained in the 2009 acquisitions and higher FDIC assessments. The rise in expenses from the fourth quarter of 2009 was largely the result of seasonally higher costs for stock-based compensation, payroll-related taxes and the Company’s contributions for retirement savings plan benefits related to incentive compensation payments.

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 and gains on merger transactions), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio was 55.9% in the first quarter of 2010, compared with 58.7% in the year-earlier period and 52.7% in the fourth quarter of 2009.

Balance Sheet. M&T had total assets of $68.4 billion at March 31, 2010, up from $64.9 billion a year earlier. Loans and leases, net of unearned discount, were $51.4 billion at the recent quarter-end, up 5% from $48.9 billion at March 31, 2009. Total deposits rose 12% to $47.5 billion at March 31, 2010 from $42.5 billion a year earlier. Deposits at domestic offices increased $6.4 billion, or 16%, to $46.7 billion at the most recent quarter-end from $40.3 billion at March 31, 2009.

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M&T BANK CORPORATION

Total stockholders’ equity increased 15% to $7.9 billion at March 31, 2010 from $6.9 billion at March 31, 2009, representing 11.57% of total assets at the recent quarter-end and 10.64% a year earlier. Common stockholders’ equity was $7.2 billion, or $60.40 per share at March 31, 2010, up from $6.3 billion, or $56.95 per share, a year earlier. Tangible equity per common share rose to $29.59 at March 31, 2010 from $26.90 a year earlier. Common stockholders’ equity per share and tangible equity per common share were $59.31 and $28.27, respectively, at December 31, 2009. In the calculation of tangible equity per common share, common stockholders’ equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances, which aggregated $3.7 billion and $3.3 billion at March 31, 2010 and 2009, respectively. M&T’s tangible common equity to tangible assets ratio was 5.43% at March 31, 2010, compared with 4.86% and 5.13% at March 31, 2009 and December 31, 2009, respectively.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss first quarter financial results today at 9:30 a.m. Eastern 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 the conference ID #68684577. The conference call will be webcast live through M&T’s website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Wednesday, April 21, 2010 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to the ID #68684577. The event will also be archived and available by 7:00 p.m. today on M&T’s website at http://ir.mandtbank.com/conference.cfm.

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M&T BANK CORPORATION

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.

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, collateral securing 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

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M&T BANK CORPORATION

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, including tax-related examinations and other matters; continued availability 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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M&T BANK CORPORATION
Financial Highlights

		Three months ended
		March 31
Amounts in thousands, except per share		2010				2009				Change
Performance
Net income		$	150,955				64,221				135	%
Net income available to common equity			138,341				55,322				150
Per common share:
Basic earnings		$	1.16				.49				137	%
Diluted earnings			1.15				.49				135
Cash dividends		$	.70				.70				—
Common shares outstanding:
Average — diluted (1)			118,256				110,439				7	%
Period end (2)			118,823				111,132				7
Return on (annualized):
Average total assets			.89	%			.40	%
Average common stockholders’ equity			7.86	%			3.61	%
Taxable-equivalent net interest income		$	562,257				452,740				24	%
Yield on average earning assets			4.59	%			4.65	%
Cost of interest-bearing liabilities			1.04	%			1.74	%
Net interest spread			3.55	%			2.91	%
Contribution of interest-free funds			.23	%			.28	%
Net interest margin			3.78	%			3.19	%
Net charge-offs to average total net loans (annualized)			.74	%			.83	%
Net operating results (3)
Net operating income		$	160,953				75,034				115	%
Diluted net operating earnings per common share			1.23				.59				108
Return on (annualized):
Average tangible assets			1.00	%			.50	%
Average tangible common equity			17.34	%			9.36	%
Efficiency ratio			55.88	%			58.68	%
		At March 31
		2010				2009				Change
Loan quality
Nonaccrual loans		$	1,339,992				1,003,987				33	%
Real estate and other foreclosed assets			95,362				100,270				-5	%
Total nonperforming assets		$	1,435,354				1,104,257				30	%
Accruing loans past due 90 days or more		$	203,443				142,842				42	%
Renegotiated loans		$	220,885				130,932				69	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	37,048				38,460				-4	%
Accruing loans past due 90 days or more			194,523				127,237				53	%
Purchased impaired loans (4):
Outstanding customer balance		$	148,686				—				—
Carrying amount			73,890				—				—
Nonaccrual loans to total net loans			2.60	%			2.05	%
Allowance for credit losses to:
Legacy loans			1.86	%			1.73	%
Total loans			1.73	%			1.73	%

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M&T BANK CORPORATION
Financial Highlights, Five Quarter Trend

		Three months ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Amounts in thousands, except per share		2010				2009				2009				2009				2009
Performance
Net income		$	150,955				136,818				127,664				51,188				64,221
Net income available to common equity			138,341				124,251				115,143				40,964				55,322
Per common share:
Basic earnings		$	1.16				1.05				.97				.36				.49
Diluted earnings			1.15				1.04				.97				.36				.49
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average — diluted (1)			118,256				117,672				117,547				113,521				110,439
Period end (2)			118,823				118,298				118,156				118,012				111,132
Return on (annualized):
Average total assets			.89	%			.79	%			.73	%			.31	%			.40	%
Average common stockholders’ equity			7.86	%			7.09	%			6.72	%			2.53	%			3.61	%
Taxable-equivalent net interest income		$	562,257				564,606				553,450				506,781				452,740
Yield on average earning assets			4.59	%			4.58	%			4.60	%			4.62	%			4.65	%
Cost of interest-bearing liabilities			1.04	%			1.13	%			1.26	%			1.47	%			1.74	%
Net interest spread			3.55	%			3.45	%			3.34	%			3.15	%			2.91	%
Contribution of interest-free funds			.23	%			.26	%			.27	%			.28	%			.28	%
Net interest margin			3.78	%			3.71	%			3.61	%			3.43	%			3.19	%
Net charge-offs to average total net loans (annualized)			.74	%			1.03	%			1.07	%			1.09	%			.83	%
Net operating results (3)
Net operating income		$	160,953				150,776				128,761				100,805				75,034
Diluted net operating earnings per common share			1.23				1.16				.98				.79				.59
Return on (annualized):
Average tangible assets			1.00	%			.92	%			.78	%			.64	%			.50	%
Average tangible common equity			17.34	%			16.73	%			14.87	%			12.08	%			9.36	%
Efficiency ratio			55.88	%			52.69	%			55.21	%			60.03	%			58.68	%
		March 31,				December 31,				September 30,				June 30,				March 31,
		2010				2009				2009				2009				2009
Loan quality
Nonaccrual loans		$	1,339,992				1,331,702				1,228,341				1,111,423				1,003,987
Real estate and other foreclosed assets			95,362				94,604				84,676				90,461				100,270
Total nonperforming assets		$	1,435,354				1,426,306				1,313,017				1,201,884				1,104,257
Accruing loans past due 90 days or more		$	203,443				208,080				182,750				155,125				142,842
Renegotiated loans		$	220,885				212,548				190,917				170,950				130,932
Government guaranteed loans included in totals above:
Nonaccrual loans		$	37,048				38,579				38,590				38,075				38,460
Accruing loans past due 90 days or more			194,523				193,495				172,701				143,886				127,237
Purchased impaired loans (4):
Outstanding customer balance		$	148,686				172,772				209,138				170,400				—
Carrying amount			73,890				88,170				108,058				97,730				—
Nonaccrual loans to total net loans			2.60	%			2.56	%			2.35	%			2.11	%			2.05	%
Allowance for credit losses to:
Legacy loans			1.86	%			1.83	%			1.81	%			1.76	%			1.73	%
Total loans			1.73	%			1.69	%			1.66	%			1.62	%			1.73	%

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M&T BANK CORPORATION
Condensed Consolidated Statement of Income

		Three months ended
		March 31
Dollars in thousands		2010				2009				Change
Interest income		$	676,386				654,512				3	%
Interest expense			120,052				206,705				-42
Net interest income			556,334				447,807				24
Provision for credit losses			105,000				158,000				-34
Net interest income after provision for credit losses			451,334				289,807				56
Other income
Mortgage banking revenues			41,476				56,233				-26
Service charges on deposit accounts			120,295				101,029				19
Trust income			30,928				34,880				-11
Brokerage services income			13,106				15,393				-15
Trading account and foreign exchange gains			4,699				1,435				227
Gain on bank investment securities			459				575				—
Other-than-temporary impairment losses recognized in earnings			(26,802	)			(32,199	)			—
Equity in earnings of Bayview Lending Group LLC			(5,714	)			(4,144	)			—
Other revenues from operations			79,259				59,139				34
Total other income			257,706				232,341				11
Other expense
Salaries and employee benefits			264,046				249,392				6
Equipment and net occupancy			55,401				48,172				15
Printing, postage and supplies			9,043				9,095				-1
Amortization of core deposit and other intangible assets			16,475				15,370				7
FDIC assessments			21,348				5,856				265
Other costs of operations			123,049				110,461				11
Total other expense			489,362				438,346				12
Income before income taxes			219,678				83,802				162
Applicable income taxes			68,723				19,581				251
Net income		$	150,955				64,221				135	%

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M&T BANK CORPORATION
Condensed Consolidated Statement of Income, Five Quarter Trend

		Three months ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Dollars in thousands		2010				2009				2009				2009				2009
Interest income		$	676,386				692,669				700,593				677,423				654,512
Interest expense			120,052				133,950				152,938				175,856				206,705
Net interest income			556,334				558,719				547,655				501,567				447,807
Provision for credit losses			105,000				145,000				154,000				147,000				158,000
Net interest income after provision for credit losses			451,334				413,719				393,655				354,567				289,807
Other income
Mortgage banking revenues			41,476				50,176				48,169				52,983				56,233
Service charges on deposit accounts			120,295				127,185				128,502				112,479				101,029
Trust income			30,928				29,660				31,586				32,442				34,880
Brokerage services income			13,106				14,396				14,329				13,493				15,393
Trading account and foreign exchange gains			4,699				6,669				7,478				7,543				1,435
Gain (loss) on bank investment securities			459				354				(56	)			292				575
Other-than-temporary impairment losses recognized in earnings			(26,802	)			(34,296	)			(47,033	)			(24,769	)			(32,199	)
Equity in earnings of Bayview Lending Group LLC			(5,714	)			(10,635	)			(10,912	)			(207	)			(4,144	)
Other revenues from operations			79,259				82,381				106,163				77,393				59,139
Total other income			257,706				265,890				278,226				271,649				232,341
Other expense
Salaries and employee benefits			264,046				247,080				255,449				249,952				249,392
Equipment and net occupancy			55,401				53,703				58,195				51,321				48,172
Printing, postage and supplies			9,043				9,338				8,229				11,554				9,095
Amortization of core deposit and other intangible assets			16,475				16,730				16,924				15,231				15,370
FDIC assessments			21,348				19,902				21,124				49,637				5,856
Other costs of operations			123,049				131,698				140,135				186,015				110,461
Total other expense			489,362				478,451				500,056				563,710				438,346
Income before income taxes			219,678				201,158				171,825				62,506				83,802
Applicable income taxes			68,723				64,340				44,161				11,318				19,581
Net income		$	150,955				136,818				127,664				51,188				64,221

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14-14-14-14-14

M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

		March 31
Dollars in thousands		2010				2009				Change
ASSETS
Cash and due from banks		$	1,033,269				1,117,845				-8	%
Interest-bearing deposits at banks			121,305				27,374				343
Federal funds sold and agreements to resell securities			10,400				125,800				-92
Trading account assets			403,476				591,802				-32
Investment securities			8,104,646				7,686,845				5
Loans and leases:
Commercial, financial, etc.			13,220,181				13,986,663				-5
Real estate — commercial			20,724,118				18,833,865				10
Real estate — consumer			5,664,159				5,171,953				10
Consumer			11,835,583				10,925,659				8
Total loans and leases, net of unearned discount			51,444,041				48,918,140				5
Less: allowance for credit losses			891,265				845,971				5
Net loans and leases			50,552,776				48,072,169				5
Goodwill			3,524,625				3,192,128				10
Core deposit and other intangible assets			167,545				168,126				—
Other assets			4,521,180				3,901,106				16
Total assets		$	68,439,222				64,883,195				5	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	13,622,819				9,544,932				43	%
Other deposits at U.S. offices			33,125,761				30,763,204				8
Deposits at foreign office			789,825				2,169,220				-64
Total deposits			47,538,405				42,477,356				12
Short-term borrowings			1,870,763				2,641,811				-29
Accrued interest and other liabilities			1,048,473				1,326,545				-21
Long-term borrowings			10,065,894				11,535,644				-13
Total liabilities			60,523,535				57,981,356				4
Stockholders’ equity:
Preferred			732,769				568,284				29
Common (1)			7,182,918				6,333,555				13
Total stockholders’ equity			7,915,687				6,901,839				15
Total liabilities and stockholders’ equity		$	68,439,222				64,883,195				5	%

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15-15-15-15-15

M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five Quarter Trend

		March 31,				December 31,				September 30,				June 30,				March 31,
Dollars in thousands		2010				2009				2009				2009				2009
ASSETS
Cash and due from banks		$	1,033,269				1,226,223				1,356,508				1,148,428				1,117,845
Interest-bearing deposits at banks			121,305				133,335				54,443				59,950				27,374
Federal funds sold and agreements to resell securities			10,400				20,119				17,206				2,300				125,800
Trading account assets			403,476				386,984				497,064				495,324				591,802
Investment securities			8,104,646				7,780,609				7,634,262				8,155,434				7,686,845
Loans and leases:
Commercial, financial, etc.			13,220,181				13,479,447				13,517,538				14,180,609				13,986,663
Real estate — commercial			20,724,118				20,949,931				21,007,376				20,787,198				18,833,865
Real estate — consumer			5,664,159				5,463,463				5,427,260				5,471,775				5,171,953
Consumer			11,835,583				12,043,845				12,251,598				12,275,062				10,925,659
Total loans and leases, net of unearned discount			51,444,041				51,936,686				52,203,772				52,714,644				48,918,140
Less: allowance for credit losses			891,265				878,022				867,874				855,365				845,971
Net loans and leases			50,552,776				51,058,664				51,335,898				51,859,279				48,072,169
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,192,128
Core deposit and other intangible assets			167,545				182,418				199,148				216,072				168,126
Other assets			4,521,180				4,567,422				4,378,296				4,451,805				3,901,106
Total assets		$	68,439,222				68,880,399				68,997,450				69,913,217				64,883,195
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	13,622,819				13,794,636				12,730,083				12,403,999				9,544,932
Other deposits at U.S. offices			33,125,761				32,604,764				32,813,698				33,265,704				30,763,204
Deposits at foreign office			789,825				1,050,438				1,318,070				1,085,004				2,169,220
Total deposits			47,538,405				47,449,838				46,861,851				46,754,707				42,477,356
Short-term borrowings			1,870,763				2,442,582				2,927,268				2,951,149				2,641,811
Accrued interest and other liabilities			1,048,473				995,056				1,241,576				1,238,959				1,326,545
Long-term borrowings			10,065,894				10,240,016				10,354,392				11,568,238				11,535,644
Total liabilities			60,523,535				61,127,492				61,385,087				62,513,053				57,981,356
Stockholders’ equity:
Preferred			732,769				730,235				727,748				725,472				568,284
Common (1)			7,182,918				7,022,672				6,884,615				6,674,692				6,333,555
Total stockholders’ equity			7,915,687				7,752,907				7,612,363				7,400,164				6,901,839
Total liabilities and stockholders’ equity		$	68,439,222				68,880,399				68,997,450				69,913,217				64,883,195

16-16-16-16-16

M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates

		Three months ended																								Change in balance
		March 31,								March 31,								December 31,								March 31, 2010 from
		2010								2009								2009								March 31,				December 31,
Dollars in millions		Balance				Rate				Balance				Rate				Balance				Rate				2009				2009
ASSETS
Interest-bearing deposits at banks		$	127				.02	%			20				.16	%			74				.08	%			535	%			73	%
Federal funds sold and agreements to resell securities			24				.22				102				.23				23				.19				-76				4
Trading account assets			60				.80				73				.67				70				.66				-18				-14
Investment securities			8,172				4.44				8,490				4.81				8,197				4.63				-4				—
Loans and leases, net of unearned discount Commercial, financial, etc			13,408				3.88				14,031				3.74				13,527				3.87				-4				-1
Real estate — commercial			20,867				4.48				18,795				4.40				20,950				4.48				11				—
Real estate — consumer			5,742				5.31				5,033				5.59				5,457				5.37				14				5
Consumer			11,931				5.26				10,965				5.62				12,153				5.32				9				-2
Total loans and leases, net			51,948				4.63				48,824				4.64				52,087				4.59				6				—
Total earning assets			60,331				4.59				57,509				4.65				60,451				4.58				5				—
Goodwill			3,525								3,192								3,525								10				—
Core deposit and other intangible assets			176								176								191								—				-8
Other assets			4,851								3,889								4,752								25				2
Total assets		$	68,883								64,766								68,919								6	%			—	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	585				.14				536				.25				579				.18				9	%			1	%
Savings deposits			25,068				.33				21,203				.80				24,237				.36				18				3
Time deposits			7,210				1.66				8,720				2.81				8,304				1.89				-17				-13
Deposits at foreign office			1,237				.11				2,473				.16				1,300				.11				-50				-5
Total interest-bearing deposits			34,100				.60				32,932				1.28				34,420				.72				4				-1
Short-term borrowings			2,367				.15				3,477				.27				2,308				.17				-32				3
Long-term borrowings			10,160				2.74				11,643				3.51				10,253				2.73				-13				-1
Total interest-bearing liabilities			46,627				1.04				48,052				1.74				46,981				1.13				-3				-1
Noninterest-bearing deposits			13,294								8,555								12,945								55				3
Other liabilities			1,094								1,379								1,307								-21				-16
Total liabilities			61,015								57,986								61,233								5				—
Stockholders’ equity			7,868								6,780								7,686								16				2
Total liabilities and stockholders’ equity		$	68,883								64,766								68,919								6	%			—	%
Net interest spread							3.55								2.91								3.45
Contribution of interest-free funds							.23								.28								.26
Net interest margin							3.78	%							3.19	%							3.71	%