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M&T Bank Corporation Announces Third Quarter Earnings
PRNewswire-FirstCall
BUFFALO, N.Y.

M&T Bank Corporation ("M&T") today reported its results of operations for the quarter ended September 30, 2003.

GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2003 were $1.28, up 10% from $1.16 in the year-earlier period. On the same basis, net income for the quarter ended September 30, 2003 totaled $156 million, 42% higher than the $110 million recorded in the third quarter of 2002.

M&T's financial results for 2003 reflect the impact of operations obtained in the April 1, 2003 acquisition of Allfirst Financial Inc. ("Allfirst") and the related issuance by M&T of 26.7 million common shares on that date. Merger-related expenses were $12 million, after applicable tax effect, or $.10 per diluted share, in the recently completed quarter. Such expenses represent costs for professional services, travel, and other expenses associated with the acquisition, the related integration of data processing and other operating systems and functions with those of M&T, and the commencement of M&T operations in market areas formerly served by Allfirst. There were no similar expenses in the third quarter of 2002.

GAAP-basis net income for the third quarter of 2003 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.24% and 11.37%, respectively, compared with 1.37% and 14.42%, respectively, in last year's third quarter.

For the nine-month periods ended September 30, 2003 and 2002, GAAP-basis diluted earnings per share were $3.59 and $3.53, respectively. On the same basis, net income for the first three quarters of 2003 totaled $407 million, up 20% from $338 million in the corresponding period in 2002. During the first nine months of 2003, M&T incurred merger-related expenses associated with the Allfirst acquisition totaling $38 million, after applicable tax effect, or $.33 per diluted share. Although M&T will incur additional merger-related expenses during the remainder of 2003 as Allfirst's operations are fully integrated into M&T, such charges are not expected to be material. There were no similar merger-related expenses in 2002. GAAP-basis net income for the first nine months of 2003 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.23% and 11.55%, respectively, compared with 1.43% and 15.12%, respectively, in the corresponding 2002 period.

Supplemental Reporting of Non-GAAP Results of Operations. Since 1998, M&T has consistently provided supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such expenses are considered by management to be "nonoperating" in nature. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results. Amortization of core deposit and other intangible assets, after tax effect, totaled $14 million ($.11 per diluted share) in the third quarter of 2003, compared with $8 million ($.08 per diluted share) in the year-earlier quarter. Similar amortization charges, after tax effect, for the nine months ended September 30, 2003 and 2002 were $35 million ($.31 per diluted share) and $25 million ($.27 per diluted share), respectively.

Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets and the previously noted merger-related expenses, were $1.49 for the recently completed quarter, up 20% from $1.24 in the third quarter of 2002. Net operating income for 2003's third quarter was $183 million, 55% above $118 million for the three months ended September 30, 2002. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, net operating income was 1.55% and 30.67%, respectively, in 2003's third quarter, compared with 1.52% and 25.46% in the corresponding 2002 quarter.

For the first three quarters of 2003, diluted net operating earnings per share were $4.23, up 11% from $3.80 in the comparable 2002 period. Net operating income for the first nine months of 2003 rose to $479 million, 32% higher than $363 million in the corresponding 2002 period. For the nine-month period ended September 30, 2003, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.54% and 28.55%, respectively, compared with 1.60% and 27.14% in the similar 2002 period.

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

                                     Three months ended  Nine months ended
                                         September 30        September 30
                                        2003      2002      2003      2002
                                     --------   -------   -------   -------
                                          (in thousands, except per share)

  Diluted earnings per share         $   1.28      1.16      3.59      3.53

  Amortization of core deposit
   and other intangible assets(1)         .11       .08       .31       .27

  Merger-related expenses(1)              .10        -        .33        -
                                     --------   -------   -------   -------
  Diluted net operating
   earnings per share                $   1.49      1.24      4.23      3.80
                                     ========   =======   =======   =======

  Net income                         $156,463   110,117   407,041   338,201

  Amortization of core deposit
   and other intangible assets(1)      13,790     7,956    34,767    25,282

  Merger-related expenses(1)           12,417        -     37,529        -
                                     --------   -------   -------   -------

  Net operating income               $182,670   118,073   479,337   363,483
                                     ========   =======   =======   =======

  (1) After any related tax effect


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

                                      Three months ended   Nine months ended
                                         September 30        September 30
                                        2003      2002      2003      2002
                                      -------   -------   -------   -------
                                                   (in millions)

  Average assets                      $50,024    31,908    44,077    31,518

  Goodwill                             (2,904)   (1,098)   (2,305)   (1,098)

  Core deposit and
   other intangible assets               (272)     (137)     (227)     (150)

  Deferred taxes                           -         45        -         48
                                      -------   -------   -------   -------
  Average tangible assets             $46,848    30,718    41,545    30,318
                                      =======   =======   =======   =======

  Average equity                      $ 5,461     3,030     4,710     2,990

  Goodwill                             (2,904)   (1,098)   (2,305)   (1,098)

  Core deposit and other
   intangible assets                     (272)     (137)     (227)     (150)

  Deferred taxes                           78        45        67        48
                                      -------   -------   -------   -------
  Average tangible equity             $ 2,363     1,840     2,245     1,790
                                      =======   =======   =======   =======


Accounting for Stock-Based Compensation. Effective January 1, 2003, M&T began expensing stock-based compensation in accordance with the fair value method of accounting described in Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation," as amended. As a result, salaries and employee benefits expense in 2003 included $11 million of stock-based compensation in the recent quarter and $10 million in each of the first two quarters. After tax effect, stock-based compensation lowered 2003's net income by $9 million ($.07 per diluted share) in the third quarter, $7 million ($.06 per diluted share) in the second quarter, and $7 million ($.08 per diluted share) in the first quarter. Using the retroactive restatement method described in SFAS No. 148, which amended SFAS No. 123, salaries and employee benefits expense for the first three quarters of 2002 were each restated to include $10 million of stock-based compensation, resulting in a reduction of previously reported net income of $7 million, or $.07 per diluted share, in each of the 2002 quarters. These expenses are included in both the GAAP and supplemental non-GAAP results of operations discussed herein.

Taxable-equivalent Net Interest Income. Growth in average loans outstanding resulted in a jump in taxable-equivalent net interest income of 36% to $435 million in the third quarter of 2003 from $319 million in the year-earlier quarter. Including the impact of the $10.3 billion of loans obtained in the April 1, 2003 acquisition of Allfirst, average loans outstanding increased 43% to $37.0 billion in 2003's third quarter from $25.8 billion in the corresponding 2002 period. Net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, declined to 4.02% in the recent quarter from 4.38% in the year-earlier period. The decrease in net interest margin was largely the result of the yields on earning assets and rates paid on interest-bearing liabilities obtained in the Allfirst acquisition.

Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $34 million in the recent quarter, compared with $37 million a year earlier. Net charge-offs of loans during the third quarter of 2003 were $16 million, down from $36 million in the year-earlier period. During 2002's third quarter, M&T charged off the entire $17 million carrying value of two commercial leases with a major airline company that filed for bankruptcy protection. Net charge-offs of loans acquired from Allfirst during the recent quarter were not significant. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .17% in 2003's third quarter, improved from .55% in the corresponding 2002 period. Loans classified as nonperforming totaled $285 million, or .77% of total loans at the recent quarter-end, compared with $227 million or .86% at September 30, 2002. Loans past due 90 days or more and accruing interest were $174 million at September 30, 2003, up from $148 million a year earlier. Included in these loans at September 30, 2003 and 2002 were $117 million and $109 million, respectively, of one-to-four family residential mortgage loans serviced by M&T and repurchased from the Government National Mortgage Association. The outstanding principal balances of these loans, which were repurchased to reduce servicing costs, are fully guaranteed by government agencies. In general, the remaining portion of accruing loans past due 90 days or more are either also guaranteed by government agencies or well-secured by collateral. Included in the September 30, 2003 totals of nonperforming loans and loans past due 90 days or more and accruing interest were loans obtained in the Allfirst acquisition of $82 million and $29 million, respectively. Assets taken in foreclosure of defaulted loans were $20 million at September 30, 2003 and 2002.

Allowance for Credit Losses. The allowance for credit losses totaled $621 million, or 1.67% of total loans, at September 30, 2003, compared with $437 million, or 1.66%, a year earlier. On the April 1, 2003 acquisition date, Allfirst had an allowance for credit losses of $146 million, or 1.43% of Allfirst's loans then outstanding. Immediately following the April 1 merger, the combined balance sheet of M&T and Allfirst included an allowance for credit losses of $591 million that was equal to 1.62% of the $36.5 billion of outstanding loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 218% at September 30, 2003 and 193% a year earlier.

Noninterest Income and Expense. Noninterest income in the third quarter of 2003 grew to $232 million, 80% higher than $128 million in the three-month period ended September 30, 2002. Approximately $90 million of the increase was attributable to revenues related to operations in market areas associated with the former Allfirst franchise. Higher mortgage banking revenues and service charges on deposit accounts also contributed to the improvement.

Noninterest expense in 2003's third quarter totaled $396 million, up 62% from $244 million in the year-earlier quarter. Included in such amounts are expenses considered to be "nonoperating" in nature consisting of the previously noted amortization of core deposit and other intangible assets of $23 million in 2003 and $13 million in 2002, and merger-related expenses of $19 million in 2003. There were no merger-related expenses in 2002. Exclusive of these nonoperating expenses, noninterest operating expenses were $355 million in the recent quarter, compared with $231 million in the third quarter of 2002. The increase in operating expenses was largely related to operations formerly associated with Allfirst and to higher incentive compensation costs. Partially offsetting these higher expenses was a $12 million reversal of a valuation allowance for possible impairment of capitalized residential mortgage servicing rights during the recently completed quarter. The partial reduction of the valuation allowance reflects the increase in value of capitalized mortgage servicing rights resulting from higher residential mortgage loan interest rates as compared with June 30, 2003. The higher interest rates have resulted in significant decreases in the expected rate of residential mortgage loan prepayments used in calculating the estimated fair value of capitalized servicing rights. M&T had recognized an $18 million provision for impairment of capitalized mortgage servicing rights in the second quarter of 2003, reflecting the impact of declining interest rates during that quarter on the value of such rights. In 2002, provisions for impairment of capitalized servicing rights during the three and nine-month periods ended September 30 were $16 million and $19 million, respectively. Capitalized residential mortgage servicing rights, net of valuation allowance, are included in "other assets" in M&T's consolidated balance sheet and totaled $106 million and $109 million at September 30, 2003 and 2002, respectively. Residential mortgage loans serviced for others totaled approximately $12 billion at September 30, 2003 and 2002.

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 sales of bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.2% in the third quarter of 2003, compared with 51.6% in the year-earlier period. The higher ratio in 2003 reflects the impact of the acquired Allfirst operations being integrated with those of M&T.

Commenting on M&T's third quarter results, Michael P. Pinto, Executive Vice President and Chief Financial Officer, stated, "We are pleased with the progress being made in integrating Allfirst's operations into those of M&T. In particular, the transfer of information from Allfirst's major data processing systems over the July 4th weekend went extremely well. The success of this significant event resulted from the hard work of many dedicated employees and is reflected in M&T's financial results for the third quarter. We remain confident at this time that M&T's full-year results for 2003, after excluding Allfirst merger expenses, will be in line with current analysts' estimates."

Balance Sheet. M&T had total assets of $50.3 billion at September 30, 2003, up from $34.2 billion a year earlier. Loans and leases, net of unearned discount, rose 41% to $37.2 billion at the recent quarter-end from $26.3 billion at September 30, 2002. Deposits totaled $32.4 billion at September 30, 2003, up from $22.5 billion at the end of 2002's third quarter. Total assets, loans and deposits obtained in the Allfirst transaction were $16 billion, $10 billion and $11 billion, respectively. Total stockholders' equity was $5.6 billion at September 30, 2003, representing 11.09% of total assets, compared with $3.1 billion or 9.02% a year earlier. Common stockholders' equity per share was $46.49 and $33.52 at September 30, 2003 and 2002, respectively. Tangible equity per common share was $20.71 at September 30, 2003, compared with $20.63 at September 30, 2002. In the calculation of tangible equity per common share, 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 $3.1 billion and $1.2 billion at September 30, 2003 and 2002, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results at 10:00 a.m. Eastern Time today, October 10, 2003. 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. 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 October 11, 2003 by calling 877-519-4471, code 4020789 and 973-341-3080 for international participants. The event will also be archived and available by 1:00 p.m. today on M&T's website at http://ir.mandtbank.com/conference.cfm.

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; credit losses; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock options to be issued in future periods; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively; regulatory supervision and oversight, including required capital levels; 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, including environmental regulations; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings; continued availability 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 and acquisition 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, including interest rate and currency exchange rate fluctuations, and other Future Factors.

  CONTACT:  Michael S. Piemonte
            716-842-5138


  M&T BANK CORPORATION
  Financial Highlights

  Amounts in thousands,
   except per share

                        Three months ended          Nine months ended
                           September 30                September 30
                          2003       2002   Change    2003      2002  Change
                        --------   -------  ------  --------  ------- ------
  Performance

  Net income            $156,463   110,117   42%    $407,041   338,201   20%

  Per common share:
   Basic earnings       $   1.31      1.20    9%    $   3.68      3.65    1%
   Diluted earnings         1.28      1.16   10         3.59      3.53    2
   Cash dividends       $    .30       .25   20     $    .90       .75   20

  Common shares
   outstanding:
   Average - diluted(1)  122,593    94,942   29%     113,441    95,714   19%
   Period end (2)        119,857    91,992   30      119,857    91,992   30

  Return on (annualized):
   Average total assets     1.24%     1.37%             1.23%     1.43%
   Average common
    stockholders' equity   11.37%    14.42%            11.55%    15.12%

  Taxable-equivalent
   net interest income  $434,780   318,721   36%  $1,189,568   936,477   27%

  Yield on average
   earning assets           5.26%     6.38%             5.52%     6.54%
  Cost of interest-
   bearing liabilities      1.51%     2.34%             1.66%     2.49%
  Net interest spread       3.75%     4.04%             3.86%     4.05%
  Contribution of
   interest-free funds       .27%      .34%              .27%      .34%
  Net interest margin       4.02%     4.38%             4.13%     4.39%

  Net charge-offs to
   average total net
   loans (annualized)        .17%      .55%              .26%      .40%

  Net operating results (3)

  Net operating income  $182,670   118,073   55%    $479,337   363,483   32%
  Diluted net operating
   earnings per common
   share                    1.49      1.24   20         4.23      3.80   11
  Return on (annualized):
   Average tangible assets  1.55%     1.52%             1.54%     1.60%
   Average tangible common
    equity                 30.67%    25.46%            28.55%    27.14%
  Efficiency ratio         53.22%    51.59%            53.47%    51.17%


                          At September 30
  Loan quality            2003      2002   Change
                        --------   ------- ------
  Nonaccrual loans      $278,300   218,617   27%
  Renegotiated loans       6,888     8,402  -18
                        --------   -------
  Total nonperforming
   loans                $285,188   227,019   26%
                        ========   =======

  Accruing loans past
   due 90 days or more  $174,224   147,867   18%

  Nonperforming loans
   to total net loans        .77%      .86%

  Allowance for credit
   losses to total net
   loans                    1.67%     1.66%


   (1)Includes common stock equivalents.
   (2)Includes common stock issuable under deferred compensation plans.
   (3)Excludes merger-related expenses and amortization and balances related
      to goodwill and core deposit and other intangible assets which, except
      in the calculation of the efficiency ratio, are net of applicable
      income tax effects. A reconciliation of net income and net operating
      income appears on page 4.


  M&T BANK CORPORATION
  Condensed Consolidated Statement of Income

  Dollars in thousands

                        Three months ended          Nine months ended
                           September 30               September 30
                          2003      2002    Change    2003      2002  Change
                        --------   -------  ------  --------  ------- ------

  Interest income       $564,137   461,271   22%  $1,576,092 1,383,883   14%
  Interest expense       133,539   146,080   -9      398,637   458,156  -13
                        --------   -------        ---------- ---------
  Net interest income    430,598   315,191   37    1,177,455   925,727   27

  Provision for credit
   losses                 34,000    37,000   -8      103,000    89,000   16
                        --------   -------        ---------- ---------
  Net interest income
   after provision for
   credit losses         396,598   278,191   43    1,074,455   836,727   28

  Other income
   Mortgage banking
    revenues              38,782    30,336   28      117,161    81,529   44
   Service charges on
    deposit accounts      90,927    43,072  111      220,158   123,408   78
   Trust income           32,314    14,432  124       80,153    45,555   76
   Brokerage services
    income                13,320    11,055   20       37,729    34,052   11
   Trading account and
    foreign exchange
    gains                  4,666       287 1526       10,996     1,716  541
   Gain (loss) on sales
    of bank investment
    securities                58      (660)   -          541      (659)   -
   Other revenues from
    operations            51,527    29,824   73      130,600    88,152   48
                        --------   -------        ---------- ---------
     Total other income  231,594   128,346   80      597,338   373,753   60

  Other expense
   Salaries and
    employee benefits    214,118   123,388   74      543,673   372,543   46
   Equipment and net
    occupancy             48,450    28,073   73      123,497    81,004   52
   Printing, postage
    and supplies           9,092     6,988   30       27,031    18,892   43
   Amortization of core
    deposit and other
    intangible assets     22,538    13,011   73       56,807    39,696   43
   Other costs of
    operations           102,202    72,511   41      318,817   198,387   61
                        --------   -------        ---------- ---------
     Total other
      expense            396,400   243,971   62    1,069,825   710,522   51

  Income before
   income taxes          231,792   162,566   43      601,968   499,958   20

  Applicable
   income taxes           75,329    52,449   44      194,927   161,757   21
                        --------   -------        ---------- ---------
  Net income            $156,463   110,117   42%   $ 407,041   338,201   20%
                        ========   =======        ========== =========

  Summary of merger-
   related expenses
   included above:
  Salaries and employee
   benefits              $ 4,278         -           $ 8,116         -
  Equipment and net
   occupancy                 758         -             1,654         -
  Printing, postage
   and supplies              614         -             2,975         -
  Other costs of
   operations             13,601         -            45,109         -
                        --------   -------          --------  --------
  Total merger-related
   expenses              $19,251         -           $57,854         -
                        ========   =======          ========  ========

  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet

                                                 September 30
  Dollars in thousands                        2003          2002      Change
                                          -----------    ----------   ------
  ASSETS

  Cash and due from banks                 $ 2,242,825     1,197,615     87%

  Money-market assets                         306,560       295,413      4

  Investment securities                     5,957,406     4,181,474     42

  Loans and leases, net of unearned
   discount                                37,159,579    26,308,619     41
   Less: allowance for credit losses          621,417       437,340     42
                                          -----------    ----------
   Net loans and leases                    36,538,162    25,871,279     41

  Goodwill                                  2,904,081     1,097,553    165

  Core deposit and other intangible
   assets                                     261,548       130,577    100

  Other assets                              2,048,257     1,399,313     46
                                          -----------    ----------
   Total assets                           $50,258,839    34,173,224     47%
                                          ===========    ==========

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at
   U.S. offices                           $ 8,120,990     4,000,097    103%

  Other deposits at U.S. offices           21,963,294    16,769,254     31

  Deposits at foreign offices               2,330,071     1,770,820     32
                                          -----------    ----------
   Total deposits                          32,414,355    22,540,171     44

  Short-term borrowings                     4,903,249     3,810,741     29

  Accrued interest and other liabilities    1,169,951       424,667    175

  Long-term borrowings                      6,199,392     4,314,359     44
                                          -----------    ----------
   Total liabilities                       44,686,947    31,089,938     44

  Stockholders' equity (1)                  5,571,892     3,083,286     81
                                          -----------    ----------
   Total liabilities and stockholders'
    equity                                $50,258,839    34,173,224     47%
                                          ===========    ==========

  (1) Reflects accumulated other comprehensive income, net of applicable
      income taxes, of $40.6 million at September 30, 2003 and $41.8 million
      at September 30, 2002.


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

                                         Three months ended
                                            September 30
  Dollars in millions                   2003             2002     Change in
                                   Balance  Rate    Balance  Rate  balance
                                   -------  ----    -------  ---- ---------
  ASSETS

  Money-market assets              $    95  1.25 %      121  1.74 %   -22 %

  Investment securities              5,837  4.23      2,942  5.60      98

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc.      9,514  4.06      5,181  5.07      84
    Real estate - commercial        12,165  5.95      9,536  6.90      28
    Real estate - consumer           4,303  5.99      4,147  6.98       4
    Consumer                        10,971  5.90      6,964  6.83      58
                                   -------          -------
       Total loans and leases, net  36,953  5.43     25,828  6.49      43
                                   -------          -------
    Total earning assets            42,885  5.26     28,891  6.38      48

  Goodwill                           2,904            1,098           165

  Core deposit and other
   intangible assets                   272              137            99

  Other assets                       3,963            1,782           122
                                   -------          -------
    Total assets                   $50,024           31,908            57 %
                                   =======          =======

  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Interest-bearing deposits
    NOW accounts                   $ 1,227   .34        753   .54      63 %
    Savings deposits                14,320   .70      8,950  1.23      60
    Time deposits                    6,739  2.33      7,154  3.00      -6
    Deposits at foreign offices      1,340   .95        458  1.55     193
                                   -------          -------
       Total interest-bearing
        deposits                    23,626  1.16     17,315  1.94      36
                                   -------          -------

  Short-term borrowings              4,870  1.03      3,199  1.76      52
  Long-term borrowings               6,595  3.12      4,306  4.34      53
                                   -------          -------
  Total interest-bearing
   liabilities                      35,091  1.51     24,820  2.34      41

  Noninterest-bearing deposits       8,328            3,676           127

  Other liabilities                  1,144              382           200
                                   -------          -------
    Total liabilities               44,563           28,878            54

  Stockholders' equity               5,461            3,030            80
                                   -------          -------
    Total liabilities and
     stockholders' equity          $50,024           31,908            57 %
                                   =======          =======

  Net interest spread                       3.75             4.04
  Contribution of interest-free
   funds                                     .27              .34
  Net interest margin                       4.02 %           4.38 %


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

                                          Nine months ended
                                            September 30
  Dollars in millions                   2003             2002     Change in
                                   Balance  Rate    Balance  Rate  balance
                                   -------  ----    -------  ---- ---------
  ASSETS

  Money-market assets              $   255  1.27 %      218  1.77 %    17 %

  Investment securities              5,051  4.57      2,914  5.81      73

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc.      8,295  4.28      5,103  5.18      63
    Real estate - commercial        11,313  6.19      9,447  7.03      20
    Real estate - consumer           3,783  6.18      4,238  7.05     -11
    Consumer                         9,775  6.11      6,598  6.99      48
                                   -------          -------
       Total loans and leases, net  33,166  5.70     25,386  6.66      31
                                   -------          -------

    Total earning assets            38,472  5.52     28,518  6.54      35

  Goodwill                           2,305            1,098           110

  Core deposit and other
   intangible assets                   227              150            52

  Other assets                       3,073            1,752            75
                                   -------          -------
    Total assets                   $44,077           31,518            40 %
                                   =======          =======

  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Interest-bearing deposits
    NOW accounts                   $   975   .36        750   .53      30 %
    Savings deposits                12,808   .80      8,745  1.25      46
    Time deposits                    6,704  2.44      7,642  3.34     -12
    Deposits at foreign offices      1,130  1.09        447  1.53     153
                                   -------          -------
       Total interest-bearing
        deposits                    21,617  1.30     17,584  2.13      23
                                   -------          -------

  Short-term borrowings              4,388  1.17      2,947  1.76      49
  Long-term borrowings               6,050  3.30      4,053  4.57      49
                                   -------          -------
  Total interest-bearing
   liabilities                      32,055  1.66     24,584  2.49      30

  Noninterest-bearing deposits       6,496            3,573            82

  Other liabilities                    816              371           120
                                   -------          -------

    Total liabilities               39,367           28,528            38

  Stockholders' equity               4,710            2,990            58
                                   -------          -------

    Total liabilities and
     stockholders' equity          $44,077           31,518            40 %
                                   =======          =======

  Net interest spread                       3.86             4.05
  Contribution of interest-free
   funds                                     .27              .34
  Net interest margin                       4.13 %           4.39 %

 

CONTACT:

Michael S. Piemonte

716-842-5138