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 21, 2010

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 21, 2010, M&T Bank Corporation announced its results of operations for the quarter ended June 30, 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 July 21, 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 July 21, 2010. Filed herewith.

Exhibit 99

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		July 21, 2010
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER PROFITS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2010.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the second quarter of 2010 rose 306% to $1.46 from $.36 in the second quarter of 2009 and were 27% higher than $1.15 in the initial 2010 quarter. GAAP-basis net income in the recent quarter aggregated $189 million, up from $51 million and $151 million in the second quarter of 2009 and the first quarter of 2010, respectively. GAAP-basis net income for the second quarter of 2010 expressed as an annualized rate of return on average assets and average common stockholders’ equity was 1.11% and 9.67%, respectively, improved from .31% and 2.53%, respectively, in the year-earlier quarter and .89% and 7.86%, respectively, in the first quarter of 2010.

The recent quarter’s earnings as compared with the second quarter of 2009 reflects a significant rise in net interest income, resulting from a widening of the net interest margin, and a lower provision for credit losses. Also contributing to the improved performance as compared with the year-earlier quarter were lower assessments by the Federal Deposit Insurance Corporation (“FDIC”) and acquisition-related expenses incurred in 2009’s second quarter associated with M&T’s acquisition of Provident Bankshares Corporation (“Provident”)

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on May 23, 2009 related to systems conversions and other costs of integrating operations and introducing Provident’s former customers to M&T’s products and services. Such costs aggregated $40 million, after applicable tax effect, or $.35 of diluted earnings per common share, in the second quarter of 2009. Increases in net interest income, service charges on deposit accounts and mortgage banking revenues combined with declines in the provision for credit losses and personnel costs contributed to the rise in net income as compared with the initial 2010 quarter.

Reflecting on M&T’s second quarter performance, René F. Jones, Executive Vice President and Chief Financial Officer, noted, “This quarter’s results were strong in every respect. Performance metrics including net interest margin, the efficiency ratio, credit costs and our capital position all improved during the quarter. Of note, the net interest margin continued to widen, up six basis points to 3.84% from 3.78% in the first quarter, while average core deposits grew an annualized 4%. At the same time, we strengthened our tangible common equity ratio to 5.75% at June 30, 2010 from 5.43% at March 31, 2010.”

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 and gains associated with merging acquired operations into M&T, since such items are considered by management to be “nonoperating” in nature. Although “net operating income” as defined by M&T is not a GAAP

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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 in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related expenses and gains, increased for the fifth consecutive quarter, totaling $1.53 in the recent quarter, up from $.79 and $1.23 in the second quarter of 2009 and the first quarter of 2010, respectively. Net operating income during the second quarter of 2010 was $198 million, compared with $101 million and $161 million in the second quarter of 2009 and the first quarter of 2010, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common stockholders’ equity, net operating income was 1.23% and 20.36%, respectively, in the recently completed quarter, compared with .64% and 12.08% in the second quarter of 2009 and 1.00% and 17.34% in the initial 2010 quarter.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $573 million in the second quarter of 2010, up 13% from $507 million in the year-earlier period and 2% higher than $562 million in the first quarter of 2010. The significant improvement from the second quarter of 2009 was predominantly the result of a 41 basis point widening of the net interest margin to 3.84% in the recent quarter from 3.43% in the year-earlier quarter. The increase in taxable-equivalent net interest income from the initial 2010 quarter was due to a six basis point widening of the net interest margin, partially offset by a 1% decline in average earning assets.

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Provision for Credit Losses/Asset Quality. The provision for credit losses was $85 million in the recent quarter, improved from $147 million in the second quarter of 2009 and $105 million in the initial quarter of 2010. Net charge-offs of loans totaled $82 million during the second 2010 quarter, down from $138 million and $95 million in the second quarter of 2009 and the first quarter of 2010, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .64% and 1.09% in the second quarter of 2010 and 2009, respectively, and .74% in the first quarter of 2010.

Loans classified as nonaccrual aggregated $1.09 billion, or 2.13% of total loans at June 30, 2010, compared with $1.11 billion or 2.11% a year earlier and $1.34 billion or 2.60% at March 31, 2010. Assets taken in foreclosure of defaulted loans were $193 million at June 30, 2010, up from $90 million at June 30, 2009 and $95 million at March 31, 2010. The increase in such assets at the recent quarter-end resulted from the transfer of collateral related to a commercial real estate loan that was placed in nonaccrual status during the fourth quarter of 2009. The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.50% at June 30, 2010, improved from 2.78% at March 31, 2010. That ratio was 2.28% at June 30, 2009.

Loans past due 90 days or more and accruing interest totaled $203 million at the end of the recent quarter, including loans guaranteed by government-related entities of $188 million. Such past due loans were $155 million and $203 million at June 30, 2009 and March 31, 2010, respectively, including $144 million and $195 million of government guaranteed loans at those respective dates.

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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 $895 million at June 30, 2010, compared with $855 million and $891 million at June 30, 2009 and March 31, 2010, respectively. 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 any carry-over of the acquired entity’s allowance for credit losses. Excluding amounts related to loans obtained in 2009 acquisition transactions, the allowance-to-legacy loan ratio was 1.86% at the two most recent quarter-ends, compared with 1.76% at June 30, 2009.

Noninterest Income and Expense. Noninterest income totaled $274 million in the second 2010 quarter, compared with $272 million and $258 million in the second quarter of 2009 and the first quarter of 2010, respectively. Reflected in those amounts were losses from investment securities of $22 million, $24 million and $26 million, each predominantly due to other-than-temporary impairment charges. During the recent quarter, such charges related to a $12 million write-down of American Depositary Shares of Allied Irish Banks, p.l.c., which were obtained in M&T’s acquisition of Allfirst Financial Inc. in 2003 and certain of M&T’s holdings of privately issued collateralized mortgage obligations and collateralized debt obligations backed by pooled trust preferred securities, aggregating $10 million. The impairment charges in the second quarter of 2009 and in the initial 2010 quarter related to privately issued collateralized mortgage obligations. Because the impaired investment securities were previously reflected at fair value on the consolidated balance sheet, the impairment charges did not reduce stockholders’

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equity. Excluding gains and losses from investment securities, noninterest income in the second quarter of 2010 aggregated $296 million, equal to the year-earlier quarter but up 4% from $284 million in the initial quarter of 2010. Higher service charges on deposit accounts during the recent quarter as compared with the second quarter of 2009, largely due to the impact of the 2009 acquisitions, were offset by declines in mortgage banking revenues, trading account and foreign exchange gains, and losses at Bayview Lending Group. As compared with the first quarter of 2010, the recent quarter’s improvement resulted from higher service charges on deposit accounts and mortgage banking revenues.

Noninterest expense in the second quarter of 2010 aggregated $476 million, compared with $564 million in the year-earlier quarter and $489 million in the first quarter of 2010. 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 those expenses, noninterest operating expenses were $461 million in the recent quarter, compared with $482 million in the second quarter of 2009 and $473 million in 2010’s initial quarter. The decline in such expenses from the year-earlier period was largely attributable to a special assessment levied on insured financial institutions by the FDIC in the second quarter of 2009, which in M&T’s case amounted to approximately $33 million, partially offset by a $13 million reduction of the allowance for impairment of capitalized residential mortgage servicing rights in the second quarter of 2009. In comparison, a $2 million addition to the impairment allowance was recognized during the recent quarter. After excluding the impact of the FDIC special assessment and the change in the allowance for impairment of capitalized residential mortgage servicing rights, noninterest operating expenses in the recent quarter were $3 million lower than

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in the year-earlier quarter. The lower level of noninterest operating expenses in the recent quarter as compared with 2010’s initial quarter was largely the result of a decline in personnel costs from seasonally higher first quarter stock-based compensation, payroll-related taxes and contributions for retirement savings plan benefits associated with 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 associated with bank investment securities and merger-related expenses and gains), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio improved to 53.1% in the second quarter of 2010 from 60.0% in the year-earlier period (56.0% excluding the FDIC special assessment) and 55.9% in the first quarter of 2010.

Balance Sheet. M&T had total assets of $68.2 billion at June 30, 2010, compared with $69.9 billion at June 30, 2009. Loans and leases, net of unearned discount, were $51.1 billion at the recent quarter-end, compared with $52.7 billion a year earlier. Total deposits rose to $47.5 billion at June 30, 2010 from $46.8 billion at June 30, 2009. Reflecting a $1.6 billion or 13% rise in noninterest-bearing deposits, domestic office deposits increased $1.3 billion, or 3%, to $47.0 billion at the most recent quarter-end from $45.7 billion at June 30, 2009.

Total stockholders’ equity increased to $8.1 billion at June 30, 2010 from $7.4 billion a year earlier, representing 11.89% of total assets at the recent quarter-end and 10.58% a year earlier. Common stockholders’ equity was $7.4 billion, or $61.77 per share, at June 30, 2010, compared with $6.7 billion, or $56.51 per share, at June 30, 2009. Tangible equity per common share

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rose to $31.15 at the recent quarter-end from $25.17 a year earlier. 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 at each of June 30, 2010 and 2009. M&T’s tangible common equity to tangible assets ratio was 5.75% at June 30, 2010, compared with 4.49% and 5.43% at June 30, 2009 and March 31, 2010, respectively.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss second quarter financial results today at 10:30 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# 87561125. 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 Friday, July 23, 2010 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to ID# 87561125. The event will also be archived and available by 6:00 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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M&T BANK CORPORATION

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 capital requirements; 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, including tax-related

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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												Six months ended
		June 30												June 30
Amounts in thousands, except per share		2010				2009				Change				2010				2009				Change
Performance
Net income		$	188,749				51,188				269	%		$	339,704				115,409				194	%
Net income available to common equity			176,088				40,964				330				314,429				96,286				227
Per common share:
Basic earnings		$	1.47				.36				308	%		$	2.63				.85				209	%
Diluted earnings			1.46				.36				306				2.61				.85				207
Cash dividends		$	.70				.70				—			$	1.40				1.40				—
Common shares outstanding:
Average — diluted (1)			118,878				113,521				5	%			118,569				111,988				6	%
Period end (2)			119,161				118,012				1				119,161				118,012				1
Return on (annualized):
Average total assets			1.11	%			.31	%							1.00	%			.35	%
Average common stockholders’ equity			9.67	%			2.53	%							8.78	%			3.06	%
Taxable-equivalent net interest income		$	573,332				506,781				13	%		$	1,135,589				959,521				18	%
Yield on average earning assets			4.63	%			4.62	%							4.61	%			4.63	%
Cost of interest-bearing liabilities			1.04	%			1.47	%							1.04	%			1.61	%
Net interest spread			3.59	%			3.15	%							3.57	%			3.02	%
Contribution of interest-free funds			.25	%			.28	%							.24	%			.29	%
Net interest margin			3.84	%			3.43	%							3.81	%			3.31	%
Net charge-offs to average total net loans (annualized)			.64	%			1.09	%							.69	%			.96	%
Net operating results (3)
Net operating income		$	197,752				100,805				96	%		$	358,705				175,839				104	%
Diluted net operating earnings per common share			1.53				.79				94				2.77				1.39				99
Return on (annualized):
Average tangible assets			1.23	%			.64	%							1.11	%			.57	%
Average tangible common equity			20.36	%			12.08	%							18.89	%			10.76	%
Efficiency ratio			53.06	%			60.03	%							54.45	%			59.39	%
		At June 30
		2010				2009				Change
Loan quality
Nonaccrual loans		$	1,090,135				1,111,423				-2	%
Real estate and other foreclosed assets			192,631				90,461				113	%
Total nonperforming assets		$	1,282,766				1,201,884				7	%
Accruing loans past due 90 days or more		$	203,081				155,125				31	%
Renegotiated loans		$	228,847				170,950				34	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	40,271				38,075				6	%
Accruing loans past due 90 days or more			187,682				143,886				30	%
Purchased impaired loans (4):
Outstanding customer balance		$	130,808				170,400				-23	%
Carrying amount			61,524				97,730				-37	%
Nonaccrual loans to total net loans			2.13	%			2.11	%
Allowance for credit losses to:
Legacy loans			1.86	%			1.76	%
Total loans			1.75	%			1.62	%

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M&T BANK CORPORATION
Financial Highlights, Five Quarter Trend

		Three months ended
		June 30,				March 31,				December 31,				September 30,				June 30,
Amounts in thousands, except per share		2010				2010				2009				2009				2009
Performance
Net income		$	188,749				150,955				136,818				127,664				51,188
Net income available to common equity			176,088				138,341				124,251				115,143				40,964
Per common share:
Basic earnings		$	1.47				1.16				1.05				.97				.36
Diluted earnings			1.46				1.15				1.04				.97				.36
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average — diluted (1)			118,878				118,256				117,672				117,547				113,521
Period end (2)			119,161				118,823				118,298				118,156				118,012
Return on (annualized):
Average total assets			1.11	%			.89	%			.79	%			.73	%			.31	%
Average common stockholders’ equity			9.67	%			7.86	%			7.09	%			6.72	%			2.53	%
Taxable-equivalent net interest income		$	573,332				562,257				564,606				553,450				506,781
Yield on average earning assets			4.63	%			4.59	%			4.58	%			4.60	%			4.62	%
Cost of interest-bearing liabilities			1.04	%			1.04	%			1.13	%			1.26	%			1.47	%
Net interest spread			3.59	%			3.55	%			3.45	%			3.34	%			3.15	%
Contribution of interest-free funds			.25	%			.23	%			.26	%			.27	%			.28	%
Net interest margin			3.84	%			3.78	%			3.71	%			3.61	%			3.43	%
Net charge-offs to average total net loans (annualized)			.64	%			.74	%			1.03	%			1.07	%			1.09	%
Net operating results (3)
Net operating income		$	197,752				160,953				150,776				128,761				100,805
Diluted net operating earnings per common share			1.53				1.23				1.16				.98				.79
Return on (annualized):
Average tangible assets			1.23	%			1.00	%			.92	%			.78	%			.64	%
Average tangible common equity			20.36	%			17.34	%			16.73	%			14.87	%			12.08	%
Efficiency ratio			53.06	%			55.88	%			52.69	%			55.21	%			60.03	%
		June 30,				March 31,				December 31,				September 30,				June 30,
		2010				2010				2009				2009				2009
Loan quality
Nonaccrual loans		$	1,090,135				1,339,992				1,331,702				1,228,341				1,111,423
Real estate and other foreclosed assets			192,631				95,362				94,604				84,676				90,461
Total nonperforming assets		$	1,282,766				1,435,354				1,426,306				1,313,017				1,201,884
Accruing loans past due 90 days or more		$	203,081				203,443				208,080				182,750				155,125
Renegotiated loans		$	228,847				220,885				212,548				190,917				170,950
Government guaranteed loans included in totals above:
Nonaccrual loans		$	40,271				37,048				38,579				38,590				38,075
Accruing loans past due 90 days or more			187,682				194,523				193,495				172,701				143,886
Purchased impaired loans (4):
Outstanding customer balance		$	130,808				148,686				172,772				209,138				170,400
Carrying amount			61,524				73,890				88,170				108,058				97,730
Nonaccrual loans to total net loans			2.13	%			2.60	%			2.56	%			2.35	%			2.11	%
Allowance for credit losses to:
Legacy loans			1.86	%			1.86	%			1.83	%			1.81	%			1.76	%
Total loans			1.75	%			1.73	%			1.69	%			1.66	%			1.62	%

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M&T BANK CORPORATION
Condensed Consolidated Statement of Income

		Three months ended												Six months ended
		June 30												June 30
Dollars in thousands		2010				2009				Change				2010				2009				Change
Interest income		$	684,784				677,423				1	%		$	1,361,170				1,331,935				2	%
Interest expense			117,557				175,856				-33				237,609				382,561				-38
Net interest income			567,227				501,567				13				1,123,561				949,374				18
Provision for credit losses			85,000				147,000				-42				190,000				305,000				-38
Net interest income after provision for credit losses			482,227				354,567				36				933,561				644,374				45
Other income
Mortgage banking revenues			47,084				52,983				-11				88,560				109,216				-19
Service charges on deposit accounts			128,976				112,479				15				249,271				213,508				17
Trust income			30,169				32,442				-7				61,097				67,322				-9
Brokerage services income			12,788				13,493				-5				25,894				28,886				-10
Trading account and foreign exchange gains			3,797				7,543				-50				8,496				8,978				-5
Gain on bank investment securities			10				292				—				469				867				—
Other-than-temporary impairment losses recognized in earnings			(22,380	)			(24,769	)			—				(49,182	)			(56,968	)			—
Equity in earnings of Bayview Lending Group LLC			(6,179	)			(207	)			—				(11,893	)			(4,351	)			—
Other revenues from operations			79,292				77,393				2				158,551				136,532				16
Total other income			273,557				271,649				1				531,263				503,990				5
Other expense
Salaries and employee benefits			245,861				249,952				-2				509,907				499,344				2
Equipment and net occupancy			55,431				51,321				8				110,832				99,493				11
Printing, postage and supplies			8,549				11,554				-26				17,592				20,649				-15
Amortization of core deposit and other intangible assets			14,833				15,231				-3				31,308				30,601				2
FDIC assessments			21,608				49,637				-56				42,956				55,493				-23
Other costs of operations			129,786				186,015				-30				252,835				296,476				-15
Total other expense			476,068				563,710				-16				965,430				1,002,056				-4
Income before income taxes			279,716				62,506				348				499,394				146,308				241
Applicable income taxes			90,967				11,318				704				159,690				30,899				417
Net income		$	188,749				51,188				269	%		$	339,704				115,409				194	%

14-14-14-14-14

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

		Three months ended
		June 30,				March 31,				December 31,				September 30,				June 30,
Dollars in thousands		2010				2010				2009				2009				2009
Interest income		$	684,784				676,386				692,669				700,593				677,423
Interest expense			117,557				120,052				133,950				152,938				175,856
Net interest income			567,227				556,334				558,719				547,655				501,567
Provision for credit losses			85,000				105,000				145,000				154,000				147,000
Net interest income after provision for credit losses			482,227				451,334				413,719				393,655				354,567
Other income
Mortgage banking revenues			47,084				41,476				50,176				48,169				52,983
Service charges on deposit accounts			128,976				120,295				127,185				128,502				112,479
Trust income			30,169				30,928				29,660				31,586				32,442
Brokerage services income			12,788				13,106				14,396				14,329				13,493
Trading account and foreign exchange gains			3,797				4,699				6,669				7,478				7,543
Gain (loss) on bank investment securities			10				459				354				(56	)			292
Other-than-temporary impairment losses recognized in earnings			(22,380	)			(26,802	)			(34,296	)			(47,033	)			(24,769	)
Equity in earnings of Bayview Lending Group LLC			(6,179	)			(5,714	)			(10,635	)			(10,912	)			(207	)
Other revenues from operations			79,292				79,259				82,381				106,163				77,393
Total other income			273,557				257,706				265,890				278,226				271,649
Other expense
Salaries and employee benefits			245,861				264,046				247,080				255,449				249,952
Equipment and net occupancy			55,431				55,401				53,703				58,195				51,321
Printing, postage and supplies			8,549				9,043				9,338				8,229				11,554
Amortization of core deposit and other intangible assets			14,833				16,475				16,730				16,924				15,231
FDIC assessments			21,608				21,348				19,902				21,124				49,637
Other costs of operations			129,786				123,049				131,698				140,135				186,015
Total other expense			476,068				489,362				478,451				500,056				563,710
Income before income taxes			279,716				219,678				201,158				171,825				62,506
Applicable income taxes			90,967				68,723				64,340				44,161				11,318
Net income		$	188,749				150,955				136,818				127,664				51,188

15-15-15-15-15

M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

		June 30
Dollars in thousands		2010				2009				Change
ASSETS
Cash and due from banks		$	1,045,886				1,148,428				-9	%
Interest-bearing deposits at banks			117,826				59,950				97
Federal funds sold and agreements to resell securities			10,000				2,300				335
Trading account assets			487,692				495,324				-2
Investment securities			8,097,572				8,155,434				-1
Loans and leases:
Commercial, financial, etc.			13,017,598				14,180,609				-8
Real estate — commercial			20,612,905				20,787,198				-1
Real estate — consumer			5,729,126				5,471,775				5
Consumer			11,701,657				12,275,062				-5
Total loans and leases, net of unearned discount			51,061,286				52,714,644				-3
Less: allowance for credit losses			894,667				855,365				5
Net loans and leases			50,166,619				51,859,279				-3
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			152,712				216,072				-29
Other assets			4,550,684				4,451,805				2
Total assets		$	68,153,616				69,913,217				-3	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	13,960,723				12,403,999				13	%
Other deposits at U.S. offices			33,010,520				33,265,704				-1
Deposits at foreign office			551,428				1,085,004				-49
Total deposits			47,522,671				46,754,707				2
Short-term borrowings			2,158,957				2,951,149				-27
Accrued interest and other liabilities			1,114,615				1,238,959				-10
Long-term borrowings			9,255,529				11,568,238				-20
Total liabilities			60,051,772				62,513,053				-4
Stockholders’ equity:
Preferred			735,350				725,472				1
Common (1)			7,366,494				6,674,692				10
Total stockholders’ equity			8,101,844				7,400,164				9
Total liabilities and stockholders’ equity		$	68,153,616				69,913,217				-3	%

16-16-16-16-16

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

		June 30,				March 31,				December 31,				September 30,				June 30,
Dollars in thousands		2010				2010				2009				2009				2009
ASSETS
Cash and due from banks		$	1,045,886				1,033,269				1,226,223				1,356,508				1,148,428
Interest-bearing deposits at banks			117,826				121,305				133,335				54,443				59,950
Federal funds sold and agreements to resell securities			10,000				10,400				20,119				17,206				2,300
Trading account assets			487,692				403,476				386,984				497,064				495,324
Investment securities			8,097,572				8,104,646				7,780,609				7,634,262				8,155,434
Loans and leases:
Commercial, financial, etc.			13,017,598				13,220,181				13,479,447				13,517,538				14,180,609
Real estate — commercial			20,612,905				20,724,118				20,949,931				21,007,376				20,787,198
Real estate — consumer			5,729,126				5,664,159				5,463,463				5,427,260				5,471,775
Consumer			11,701,657				11,835,583				12,043,845				12,251,598				12,275,062
Total loans and leases, net of unearned discount			51,061,286				51,444,041				51,936,686				52,203,772				52,714,644
Less: allowance for credit losses			894,667				891,265				878,022				867,874				855,365
Net loans and leases			50,166,619				50,552,776				51,058,664				51,335,898				51,859,279
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			152,712				167,545				182,418				199,148				216,072
Other assets			4,550,684				4,521,180				4,567,422				4,378,296				4,451,805
Total assets		$	68,153,616				68,439,222				68,880,399				68,997,450				69,913,217
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	13,960,723				13,622,819				13,794,636				12,730,083				12,403,999
Other deposits at U.S. offices			33,010,520				33,125,761				32,604,764				32,813,698				33,265,704
Deposits at foreign office			551,428				789,825				1,050,438				1,318,070				1,085,004
Total deposits			47,522,671				47,538,405				47,449,838				46,861,851				46,754,707
Short-term borrowings			2,158,957				1,870,763				2,442,582				2,927,268				2,951,149
Accrued interest and other liabilities			1,114,615				1,048,473				995,056				1,241,576				1,238,959
Long-term borrowings			9,255,529				10,065,894				10,240,016				10,354,392				11,568,238
Total liabilities			60,051,772				60,523,535				61,127,492				61,385,087				62,513,053
Stockholders’ equity:
Preferred			735,350				732,769				730,235				727,748				725,472
Common (1)			7,366,494				7,182,918				7,022,672				6,884,615				6,674,692
Total stockholders’ equity			8,101,844				7,915,687				7,752,907				7,612,363				7,400,164
Total liabilities and stockholders’ equity		$	68,153,616				68,439,222				68,880,399				68,997,450				69,913,217