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 October 20, 2010, M&T Bank Corporation announced its results of operations for the quarter ended September 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 October 20, 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 October 20, 2010. Filed herewith.

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		October 20, 2010
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES THIRD QUARTER PROFITS

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

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the third quarter of 2010 rose 53% to $1.48 from $.97 in the year-earlier quarter and were 1% above the $1.46 earned in the second quarter of 2010. GAAP-basis net income in the recent quarter aggregated $192 million, up from $128 million and $189 million in the third quarter of 2009 and the second 2010 quarter, respectively. GAAP-basis net income for the third quarter of 2010 expressed as an annualized rate of return on average assets and average common stockholders’ equity was 1.12% and 9.56%, respectively, compared with .73% and 6.72%, respectively, in the year-earlier quarter and 1.11% and 9.67%, respectively, in the second quarter of 2010.

Commenting on M&T’s financial results in the recent quarter, René F. Jones, Executive Vice President and Chief Financial Officer, noted, “Revenues and net income held up nicely this quarter and were each improved from a year-earlier, despite lower fee income from deposit service charges resulting from the recently adopted changes in regulation. Once again, credit costs remained well-controlled. Customer loan balances charged off during the recent quarter declined by $49 million, or 34%, from last year’s third

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quarter. This represents a welcome sign of the improvement in economic conditions relative to a year ago.”

The recent quarter’s earnings as compared with the third quarter of 2009 reflect higher 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 other-than-temporary impairment charges on certain available-for-sale investment securities, which after applicable tax effect totaled $6 million and $29 million during the quarters ended September 30, 2010 and 2009, respectively. Reflected in the results for the third quarter of 2009 were net merger-related gains of $9 million (after-tax), or $.08 of diluted earnings per common share, related to 2009 acquisitions. As compared with the second quarter of 2010, a recent quarter rise in mortgage banking revenues and lower other-than-temporary impairment charges on available-for-sale investment securities were partially offset by a decline in service charges on deposit accounts.

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 amounts 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 in the financial tables included herein.

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Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, rose for the sixth consecutive quarter, totaling $1.55 in the recent quarter, improved from $.98 in the third quarter of 2009 and $1.53 in the second quarter of 2010. Net operating income during the third quarter of 2010 was $200 million, up from $129 million and $198 million in the third quarter of 2009 and the second 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 1.24% and 19.58%, respectively, in the recent quarter, compared with .78% and 14.87% in the year-earlier quarter and 1.23% and 20.36% in the second quarter of 2010.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $576 million in the third quarter of 2010, up from $553 million in the year-earlier period and $573 million in the second quarter of 2010. The improvement in such income from the third quarter of 2009 reflects a 26 basis point widening of the net interest margin, which rose to 3.87% from 3.61%. As compared with the second quarter of 2010, a 3 basis point improvement in the recent quarter’s net interest margin was partly offset by a 1% decline in average earning assets.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $93 million in the recent quarter, compared with $154 million in the third quarter of 2009 and $85 million in 2010’s second quarter. Net charge-offs of loans totaled $93 million during the third quarter of 2010, compared with $141 million and $82 million in the quarters ended September 30, 2009 and June 30, 2010, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .73%

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and 1.07% in the third quarter of 2010 and 2009, respectively, and .64% in the second quarter of 2010.

Loans classified as nonaccrual totaled $1.10 billion, or 2.16% of total loans at September 30, 2010, compared with $1.23 billion or 2.35% a year earlier and $1.09 billion or 2.13% at June 30, 2010. Assets taken in foreclosure of defaulted loans were $193 million at each of June 30 and September 30, 2010, up from $85 million at September 30, 2009. The higher level of such assets at the two most recent quarter-ends resulted from the second quarter 2010 transfer of $98 million of collateral related to a single commercial real estate loan. The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.53% at September 30, 2010, compared with 2.51% and 2.50% at September 30, 2009 and June 30, 2010, respectively.

Loans past due 90 days or more and accruing interest totaled $215 million at the end of the recent quarter, including loans guaranteed by government-related entities of $194 million. Such past due loans were $183 million and $203 million at September 30, 2009 and June 30, 2010, respectively, including $173 million and $188 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 for credit losses was $895 million at each of June 30 and September 30, 2010, compared with $868 million at September 30, 2009. That allowance expressed as a percentage of outstanding loans was 1.76% at the recent quarter-end, compared with 1.66% at September 30, 2009 and 1.75% at June 30, 2010. Beginning in 2009, GAAP requires that

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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 1.81% at September 30, 2009.

Noninterest Income and Expense. Noninterest income totaled $290 million in the recent quarter, compared with $278 million and $274 million in the third quarter of 2009 and the second quarter of 2010, respectively. Reflected in those amounts were net losses from investment securities of $8 million, $47 million and $22 million, each predominantly due to other-than-temporary impairment charges. During each of those quarters, such charges reflected write-downs of certain of M&T’s holdings of privately issued collateralized mortgage obligations and collateralized debt obligations backed by pooled trust preferred securities. In addition, during 2010’s second quarter, other-than-temporary impairment charges included 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. Excluding gains and losses from investment securities and a pre-tax merger-related gain of $29 million in the third quarter of 2009, noninterest income in the third quarter of 2010 aggregated $298 million, up from $296 million in each of the third quarter of 2009 and the second 2010 quarter. The higher level of noninterest income in the recent quarter resulted largely from higher mortgage banking revenues that were largely offset by declines in service charges on deposit accounts. The lower level of deposit service charge revenues was attributable to new regulations that went into

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effect July 1, 2010 for new customers and August 15, 2010 for pre-existing customers. Such regulations require depositors to elect to be subject to fees for certain deposit account services.

Noninterest expense in the third quarter of 2010 aggregated $480 million, compared with $500 million in the year-earlier quarter and $476 million in the second 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 these expenses, noninterest operating expenses were $467 million in the recent quarter, compared with $469 million in the third quarter of 2009 and $461 million in 2010’s second quarter.

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 merger-related expenses and gains), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio was 53.4% in the recent quarter, compared with 55.2% and 53.1% in the year-earlier quarter and the second quarter of 2010, respectively.

Balance Sheet. M&T had total assets of $68.2 billion at September 30, 2010, compared with $69.0 billion at September 30, 2009. Loans and leases, net of unearned discount, were $50.8 billion at September 30, 2010, down 3% from $52.2 billion a year earlier. Total deposits aggregated $48.7 billion at the recent quarter-end, up 4% from $46.9 billion at September 30, 2009. Reflecting a $1.9 billion or 15% increase in noninterest-bearing deposits, deposits at domestic offices rose $2.5 billion, or 5%, to $48.0 billion at the recent quarter-end from $45.5 billion at September 30, 2009.

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Total stockholders’ equity rose 8% to $8.2 billion at September 30, 2010 from $7.6 billion a year earlier, representing 12.06% and 11.03%, respectively, of total assets. Common stockholders’ equity was $7.5 billion, or $62.69 per share, at September 30, 2010, compared with $6.9 billion, or $58.22 per share, at September 30, 2009. Tangible equity per common share rose to $32.23 at September 30, 2010 from $27.03 at September 30, 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. M&T’s tangible common equity to tangible assets ratio was 5.96% at September 30, 2010, compared with 4.89% and 5.75% at September 30, 2009 and June 30, 2010, respectively.

Allied Irish Banks, p.l.c. initiated steps in early October to divest its holdings of M&T common shares. In a public offering, 26.7 million of Contingent Mandatorily Exchangeable Notes, each note exchangeable for one share of M&T common stock, were sold in a single day. The notes were distributed directly to one hundred twenty-three institutional investors as well as through retail delivery channels.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss third 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 #17941643. 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, October 22, 2010 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to ID #17941643. The event

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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 headquartered in Buffalo, New York. M&T’s banking subsidiaries, M&T Bank and M&T Bank, National Association, operate retail and commercial bank branches in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey, the District of Columbia and Ontario, Canada.

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,

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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 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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Financial Highlights

		Three months ended												Nine months ended
Amounts in thousands,		September 30												September 30
except per share		2010				2009				Change				2010				2009				Change
Performance
Net income		$	192,015				127,664				50	%		$	531,719				243,073				119	%
Net income available to common equity			179,306				115,143				56				493,735				211,429				134
Per common share:
Basic earnings		$	1.49				.97				54	%		$	4.12				1.84				124	%
Diluted earnings			1.48				.97				53				4.10				1.84				123
Cash dividends		$	.70				.70				—			$	2.10				2.10				—
Common shares outstanding:
Average — diluted (1)			119,155				117,547				1	%			118,766				113,800				4	%
Period end (2)			119,435				118,156				1				119,435				118,156				1
Return on (annualized):
Average total assets			1.12	%			.73	%							1.04	%			.49	%
Average common stockholders’ equity			9.56	%			6.72	%							9.05	%			4.35	%
Taxable-equivalent net interest income		$	575,733				553,450				4	%		$	1,711,322				1,512,971				13	%
Yield on average earning assets			4.65	%			4.60	%							4.62	%			4.62	%
Cost of interest-bearing liabilities			1.03	%			1.26	%							1.04	%			1.49	%
Net interest spread			3.62	%			3.34	%							3.58	%			3.13	%
Contribution of interest-free funds			.25	%			.27	%							.25	%			.28	%
Net interest margin			3.87	%			3.61	%							3.83	%			3.41	%
Net charge-offs to average total net loans (annualized)			.73	%			1.07	%							.70	%			1.00	%
Net operating results (3)
Net operating income		$	200,225				128,761				56	%		$	558,930				304,600				83	%
Diluted net operating earnings per common share			1.55				.98				58				4.33				2.37				83
Return on (annualized):
Average tangible assets			1.24	%			.78	%							1.16	%			.64	%
Average tangible common equity			19.58	%			14.87	%							19.13	%			12.19	%
Efficiency ratio			53.40	%			55.21	%							54.10	%			57.90	%

		At September 30
Loan quality		2010				2009				Change
Nonaccrual loans		$	1,099,560				1,228,341				-10	%
Real estate and other foreclosed assets			192,600				84,676				127	%
Total nonperforming assets		$	1,292,160				1,313,017				-2	%
Accruing loans past due 90 days or more		$	214,769				182,750				18	%
Renegotiated loans		$	233,671				190,917				22	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	38,232				38,590				-1	%
Accruing loans past due 90 days or more			194,223				172,701				12	%
Purchased impaired loans (4):
Outstanding customer balance		$	113,964				209,138				-46	%
Carrying amount			52,728				108,058				-51	%
Nonaccrual loans to total net loans			2.16	%			2.35	%
Allowance for credit losses to:
Legacy loans			1.86	%			1.81	%
Total loans			1.76	%			1.66	%

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Financial Highlights, Five Quarter Trend

		Three months ended
Amounts in thousands,		September 30,				June 30,				March 31,				December 31,				September 30,
except per share		2010				2010				2010				2009				2009
Performance
Net income		$	192,015				188,749				150,955				136,818				127,664
Net income available to common equity			179,306				176,088				138,341				124,251				115,143
Per common share:
Basic earnings		$	1.49				1.47				1.16				1.05				.97
Diluted earnings			1.48				1.46				1.15				1.04				.97
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average — diluted (1)			119,155				118,878				118,256				117,672				117,547
Period end (2)			119,435				119,161				118,823				118,298				118,156
Return on (annualized):
Average total assets			1.12	%			1.11	%			.89	%			.79	%			.73	%
Average common stockholders’ equity			9.56	%			9.67	%			7.86	%			7.09	%			6.72	%
Taxable-equivalent net interest income		$	575,733				573,332				562,257				564,606				553,450
Yield on average earning assets			4.65	%			4.63	%			4.59	%			4.58	%			4.60	%
Cost of interest-bearing liabilities			1.03	%			1.04	%			1.04	%			1.13	%			1.26	%
Net interest spread			3.62	%			3.59	%			3.55	%			3.45	%			3.34	%
Contribution of interest-free funds			.25	%			.25	%			.23	%			.26	%			.27	%
Net interest margin			3.87	%			3.84	%			3.78	%			3.71	%			3.61	%
Net charge-offs to average total net loans (annualized)			.73	%			.64	%			.74	%			1.03	%			1.07	%
Net operating results (3)
Net operating income		$	200,225				197,752				160,953				150,776				128,761
Diluted net operating earnings per common share			1.55				1.53				1.23				1.16				.98
Return on (annualized):
Average tangible assets			1.24	%			1.23	%			1.00	%			.92	%			.78	%
Average tangible common equity			19.58	%			20.36	%			17.34	%			16.73	%			14.87	%
Efficiency ratio			53.40	%			53.06	%			55.88	%			52.69	%			55.21	%
		September 30,				June 30,				March 31,				December 31,				September 30,
Loan quality		2010				2010				2010				2009				2009
Nonaccrual loans		$	1,099,560				1,090,135				1,339,992				1,331,702				1,228,341
Real estate and other foreclosed assets			192,600				192,631				95,362				94,604				84,676
Total nonperforming assets		$	1,292,160				1,282,766				1,435,354				1,426,306				1,313,017
Accruing loans past due 90 days or more		$	214,769				203,081				203,443				208,080				182,750
Renegotiated loans		$	233,671				228,847				220,885				212,548				190,917
Government guaranteed loans included in totals above:
Nonaccrual loans		$	38,232				40,271				37,048				38,579				38,590
Accruing loans past due 90 days or more			194,223				187,682				194,523				193,495				172,701
Purchased impaired loans (4):
Outstanding customer balance		$	113,964				130,808				148,686				172,772				209,138
Carrying amount			52,728				61,524				73,890				88,170				108,058
Nonaccrual loans to total net loans			2.16	%			2.13	%			2.60	%			2.56	%			2.35	%
Allowance for credit losses to:
Legacy loans			1.86	%			1.86	%			1.86	%			1.83	%			1.81	%
Total loans			1.76	%			1.75	%			1.73	%			1.69	%			1.66	%

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Condensed Consolidated Statement of Income

		Three months ended												Nine months ended
		September 30												September 30
Dollars in thousands		2010				2009				Change				2010				2009				Change
Interest income		$	685,900				700,593				-2	%		$	2,047,070				2,032,528				1	%
Interest expense			116,032				152,938				-24				353,641				535,499				-34
Net interest income			569,868				547,655				4				1,693,429				1,497,029				13
Provision for credit losses			93,000				154,000				-40				283,000				459,000				-38
Net interest income after provision for credit losses			476,868				393,655				21				1,410,429				1,038,029				36
Other income
Mortgage banking revenues			61,052				48,169				27				149,612				157,385				-5
Service charges on deposit accounts			117,733				128,502				-8				367,004				342,010				7
Trust income			30,485				31,586				-3				91,582				98,908				-7
Brokerage services income			12,127				14,329				-15				38,021				43,215				-12
Trading account and foreign exchange gains			6,035				7,478				-19				14,531				16,456				-12
Gain (loss) on bank investment securities			1,440				(56	)			—				1,909				811				—
Other-than-temporary impairment losses recognized in earnings			(9,532	)			(47,033	)			—				(58,714	)			(104,001	)			—
Equity in earnings of Bayview Lending Group LLC			(6,460	)			(10,912	)			—				(18,353	)			(15,263	)			—
Other revenues from operations			77,019				106,163				-27				235,570				242,695				-3
Total other income			289,899				278,226				4				821,162				782,216				5
Other expense
Salaries and employee benefits			246,389				255,449				-4				756,296				754,793				—
Equipment and net occupancy			54,353				58,195				-7				165,185				157,688				5
Printing, postage and supplies			7,820				8,229				-5				25,412				28,878				-12
Amortization of core deposit and other intangible assets			13,526				16,924				-20				44,834				47,525				-6
FDIC assessments			18,039				21,124				-15				60,995				76,617				-20
Other costs of operations			140,006				140,135				—				392,841				436,611				-10
Total other expense			480,133				500,056				-4				1,445,563				1,502,112				-4
Income before income taxes			286,634				171,825				67				786,028				318,133				147
Applicable income taxes			94,619				44,161				114				254,309				75,060				239
Net income		$	192,015				127,664				50	%		$	531,719				243,073				119	%

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13-13-13-13-13
M&T BANK CORPORATION
Condensed Consolidated Statement of Income, Five Quarter Trend

		Three months ended
		September 30,				June 30,				March 31,				December 31,				September 30,
Dollars in thousands		2010				2010				2010				2009				2009
Interest income		$	685,900				684,784				676,386				692,669				700,593
Interest expense			116,032				117,557				120,052				133,950				152,938
Net interest income			569,868				567,227				556,334				558,719				547,655
Provision for credit losses			93,000				85,000				105,000				145,000				154,000
Net interest income after provision for credit losses			476,868				482,227				451,334				413,719				393,655
Other income
Mortgage banking revenues			61,052				47,084				41,476				50,176				48,169
Service charges on deposit accounts			117,733				128,976				120,295				127,185				128,502
Trust income			30,485				30,169				30,928				29,660				31,586
Brokerage services income			12,127				12,788				13,106				14,396				14,329
Trading account and foreign exchange gains			6,035				3,797				4,699				6,669				7,478
Gain (loss) on bank investment securities			1,440				10				459				354				(56	)
Other-than-temporary impairment losses recognized in earnings			(9,532	)			(22,380	)			(26,802	)			(34,296	)			(47,033	)
Equity in earnings of Bayview Lending Group LLC			(6,460	)			(6,179	)			(5,714	)			(10,635	)			(10,912	)
Other revenues from operations			77,019				79,292				79,259				82,381				106,163
Total other income			289,899				273,557				257,706				265,890				278,226
Other expense
Salaries and employee benefits			246,389				245,861				264,046				247,080				255,449
Equipment and net occupancy			54,353				55,431				55,401				53,703				58,195
Printing, postage and supplies			7,820				8,549				9,043				9,338				8,229
Amortization of core deposit and other intangible assets			13,526				14,833				16,475				16,730				16,924
FDIC assessments			18,039				21,608				21,348				19,902				21,124
Other costs of operations			140,006				129,786				123,049				131,698				140,135
Total other expense			480,133				476,068				489,362				478,451				500,056
Income before income taxes			286,634				279,716				219,678				201,158				171,825
Applicable income taxes			94,619				90,967				68,723				64,340				44,161
Net income		$	192,015				188,749				150,955				136,818				127,664

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14-14-14-14-14
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

		September 30
Dollars in thousands		2010				2009				Change
ASSETS
Cash and due from banks		$	1,070,625				1,356,508				-21	%
Interest-bearing deposits at banks			401,624				54,443				638
Federal funds sold and agreements to resell securities			443,700				17,206				—
Trading account assets			536,702				497,064				8
Investment securities			7,662,715				7,634,262				—
Loans and leases:
Commercial, financial, etc.			12,788,136				13,517,538				-5
Real estate — commercial			20,580,450				21,007,376				-2
Real estate — consumer			5,754,432				5,427,260				6
Consumer			11,668,540				12,251,598				-5
Total loans and leases, net of unearned discount			50,791,558				52,203,772				-3
Less: allowance for credit losses			894,720				867,874				3
Net loans and leases			49,896,838				51,335,898				-3
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			139,186				199,148				-30
Other assets			4,570,822				4,378,296				4
Total assets		$	68,246,837				68,997,450				-1	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	14,665,603				12,730,083				15	%
Other deposits at U.S. offices			33,335,104				32,813,698				2
Deposits at foreign office			653,916				1,318,070				-50
Total deposits			48,654,623				46,861,851				4
Short-term borrowings			1,211,683				2,927,268				-59
Accrued interest and other liabilities			1,157,250				1,241,576				-7
Long-term borrowings			8,991,508				10,354,392				-13
Total liabilities			60,015,064				61,385,087				-2
Stockholders’ equity:
Preferred			737,979				727,748				1
Common (1)			7,493,794				6,884,615				9
Total stockholders’ equity			8,231,773				7,612,363				8
Total liabilities and stockholders’ equity		$	68,246,837				68,997,450				-1	%

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15-15-15-15-15
M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five Quarter Trend

		September 30,				June 30,				March 31,				December 31,				September 30,
Dollars in thousands		2010				2010				2010				2009				2009
ASSETS
Cash and due from banks		$	1,070,625				1,045,886				1,033,269				1,226,223				1,356,508
Interest-bearing deposits at banks			401,624				117,826				121,305				133,335				54,443
Federal funds sold and agreements to resell securities			443,700				10,000				10,400				20,119				17,206
Trading account assets			536,702				487,692				403,476				386,984				497,064
Investment securities			7,662,715				8,097,572				8,104,646				7,780,609				7,634,262
Loans and leases:
Commercial, financial, etc.			12,788,136				13,017,598				13,220,181				13,479,447				13,517,538
Real estate — commercial			20,580,450				20,612,905				20,724,118				20,949,931				21,007,376
Real estate — consumer			5,754,432				5,729,126				5,664,159				5,463,463				5,427,260
Consumer			11,668,540				11,701,657				11,835,583				12,043,845				12,251,598
Total loans and leases, net of unearned discount			50,791,558				51,061,286				51,444,041				51,936,686				52,203,772
Less: allowance for credit losses			894,720				894,667				891,265				878,022				867,874
Net loans and leases			49,896,838				50,166,619				50,552,776				51,058,664				51,335,898
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			139,186				152,712				167,545				182,418				199,148
Other assets			4,570,822				4,550,684				4,521,180				4,567,422				4,378,296
Total assets		$	68,246,837				68,153,616				68,439,222				68,880,399				68,997,450
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices		$	14,665,603				13,960,723				13,622,819				13,794,636				12,730,083
Other deposits at U.S. offices			33,335,104				33,010,520				33,125,761				32,604,764				32,813,698
Deposits at foreign office			653,916				551,428				789,825				1,050,438				1,318,070
Total deposits			48,654,623				47,522,671				47,538,405				47,449,838				46,861,851
Short-term borrowings			1,211,683				2,158,957				1,870,763				2,442,582				2,927,268
Accrued interest and other liabilities			1,157,250				1,114,615				1,048,473				995,056				1,241,576
Long-term borrowings			8,991,508				9,255,529				10,065,894				10,240,016				10,354,392
Total liabilities			60,015,064				60,051,772				60,523,535				61,127,492				61,385,087
Stockholders’ equity:
Preferred			737,979				735,350				732,769				730,235				727,748
Common (1)			7,493,794				7,366,494				7,182,918				7,022,672				6,884,615
Total stockholders’ equity			8,231,773				8,101,844				7,915,687				7,752,907				7,612,363
Total liabilities and stockholders’ equity		$	68,246,837				68,153,616				68,439,222				68,880,399				68,997,450

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16-16-16-16-16
M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates

																										Change in balance
		Three months ended																								September 30,								Nine months ended
		September 30,								September 30,								June 30,								2010 from								September 30
Dollars in millions		2010								2009								2010								September 30,				June 30,				2010								2009								Change in
		Balance				Rate				Balance				Rate				Balance				Rate				2009				2010				Balance				Rate				Balance				Rate				balance
ASSETS
Interest-bearing deposits at banks		$	92				.15	%			66				.04	%			81				.02	%			41	%			14	%		$	100				.06	%			43				.06	%			134	%
Federal funds sold and agreements to resell securities			64				.26				11				.58				10				.41				457				531				33				.27				62				.25				-47
Trading account assets			82				.65				83				.82				66				.96				-1				23				69				.79				92				.76				-24
Investment securities			7,993				4.16				8,420				4.81				8,376				4.27				-5				-5				8,180				4.29				8,472				4.84				-3
Loans and leases, net of unearned discount Commercial,      financial, etc.			12,856				3.97				13,801				3.78				13,096				4.03				-7				-2				13,118				3.96				13,965				3.76				-6
Real estate — commercial			20,612				4.85				20,843				4.48				20,759				4.64				-1				-1				20,745				4.66				19,793				4.45				5
Real estate — consumer			5,680				5.30				5,429				5.43				5,653				5.35				5				—				5,691				5.32				5,243				5.47				9
Consumer			11,687				5.22				12,247				5.37				11,770				5.24				-5				-1				11,795				5.24				11,578				5.47				2
Total loans and leases, net			50,835				4.74				52,320				4.58				51,278				4.71				-3				-1				51,349				4.69				50,579				4.60				2
Total earning assets			59,066				4.65				60,900				4.60				59,811				4.63				-3				-1				59,731				4.62				59,248				4.62				1
Goodwill			3,525								3,525								3,525								—				—				3,525								3,349								5
Core deposit and other intangible assets			146								208								160								-30				-9				160								191								-16
Other assets			5,074								4,521								4,838								12				5				4,923								4,196								17
Total assets		$	67,811								69,154								68,334								-2	%			-1	%		$	68,339								66,984								2	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	592				.15				541				.21				619				.14				9	%			-4	%		$	599				.14				531				.22				13	%
Savings deposits			26,177				.33				23,367				.37				25,942				.33				12				1				25,733				.33				22,358				.54				15
Time deposits			6,312				1.46				9,246				2.17				6,789				1.55				-32				-7				6,767				1.56				8,943				2.49				-24
Deposits at foreign office			802				.16				1,444				.13				972				.16				-44				-18				1,002				.14				1,788				.15				-44
Total interest-bearing deposits			33,883				.53				34,598				.84				34,322				.56				-2				-1				34,101				.56				33,620				1.03				1
Short-term borrowings			1,858				.16				2,663				.26				1,763				.17				-30				5				1,994				.16				3,114				.26				-36
Long-term borrowings			8,948				3.10				11,008				2.80				9,454				2.91				-19				-5				9,516				2.91				11,376				3.17				-16
Total interest-bearing liabilities			44,689				1.03				48,269				1.26				45,539				1.04				-7				-2				45,611				1.04				48,110				1.49				-5
Noninterest-bearing deposits			13,647								12,122								13,610								13				—				13,518								10,416								30
Other liabilities			1,294								1,242								1,149								4				13				1,180								1,313								-10
Total liabilities			59,630								61,633								60,298								-3				-1				60,309								59,839								1
Stockholders’ equity			8,181								7,521								8,036								9				2				8,030								7,145								12
Total liabilities and stockholders’ equity		$	67,811								69,154								68,334								-2	%			-1	%		$	68,339								66,984								2	%
Net interest spread							3.62								3.34								3.59																3.58								3.13
Contribution of interest-free funds							.25								.27								.25																.25								.28
Net interest margin							3.87	%							3.61	%							3.84	%															3.83	%							3.41	%