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

M&T Bank Corporation ("M&T") today reported its results of operations for the quarter ended September 30, 2004.

GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2004 were $1.56, up 22% from $1.28 in the year-earlier period. On the same basis, net income in the recent quarter totaled $186 million, 19% higher than $156 million in the third quarter of 2003. GAAP- basis net income for 2004's third quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.42% and 13.02%, respectively, improved from 1.24% and 11.37%, respectively, in the year-earlier quarter.

The recent quarter's results include the following three events. First, M&T reorganized certain of its subsidiaries which decreased M&T's effective state income tax rate for the quarter. As a result, both M&T's income tax expense during the third quarter of 2004 and M&T's deferred tax liability at September 30, 2004 were reduced by $12 million. Nevertheless, M&T's effective income tax rate in future periods is not expected to be significantly different from what it otherwise would have been had the subsidiary reorganization not occurred. Second, M&T Bank, a wholly owned subsidiary of M&T, made a tax-deductible $25 million cash contribution to The M&T Charitable Foundation, a tax-exempt private charitable foundation, which increased "other expense" by the amount of the contribution while reducing income tax expense by $10 million. Finally, a $3 million after-tax gain was realized on the sale of a venture capital investment that M&T had obtained in the acquisition of Allfirst Financial Inc. ("Allfirst"). Collectively, these three events were offsetting and did not have a material effect on M&T's net income or earnings per share.

M&T's results for 2003's third quarter reflect merger-related expenses incurred in connection with the April 1, 2003 acquisition of Allfirst. Such expenses totaled $12 million, after applicable tax effect, or $.10 per diluted share, and represented costs for professional services, travel, and other expenses associated with the acquisition and the related integration of data processing and other operating systems and functions. There were no similar expenses in the third quarter of 2004.

For the first three quarters of 2004, GAAP-basis diluted earnings per share were $4.39, up 22% from $3.59 in the similar 2003 period. On the same basis, net income for the first nine months of 2004 totaled $530 million, 30% higher than the $407 million earned in the corresponding 2003 period. Merger- related expenses incurred during the nine-month period ended September 30, 2003 associated with the acquisition of Allfirst were $38 million, after applicable tax effect, or $.33 per diluted share. There were no merger- related expenses in the first nine months of 2004. GAAP-basis net income for the nine-month period ended September 30, 2004 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.39% and 12.44%, respectively, compared with 1.23% and 11.55%, respectively, in the year-earlier 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 $11 million ($.09 per diluted share) in the recent quarter, compared with $14 million ($.11 per diluted share) in the year-earlier quarter. Similar amortization charges, after tax effect, for the nine months ended September 30, 2004 and 2003 were $36 million ($.30 per diluted share) and $35 million ($.31 per diluted share), respectively.

Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related expenses, were $1.65 in the third quarter of 2004, up 11% from $1.49 in the year-earlier quarter. Net operating income during the recent quarter was $198 million, 8% higher than $183 million in the corresponding 2003 quarter. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, net operating income was 1.60% and 29.42%, respectively, in the recent quarter, compared with 1.55% and 30.67% in the third quarter of 2003.

Diluted net operating earnings per share for the nine-month period ended September 30, 2004 rose 11% to $4.69 from $4.23 in the similar period of 2003. For the first nine months of 2004, net operating income totaled $566 million, 18% higher than $479 million in the year-earlier period. Expressed as an annualized rate of return on average tangible assets and average tangible equity, net operating income for the first three quarters of 2004 was 1.58% and 28.45%, respectively, compared with 1.54% and 28.55% in the corresponding 2003 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
                                      2004     2003       2004     2003
                                      ----     ----       ----     ----
                                       (in thousands, except per share)

  Diluted earnings per share      $   1.56     1.28       4.39     3.59
  Amortization of core deposit
   and other intangible assets(1)      .09      .11        .30      .31
  Merger-related expenses(1)             -      .10          -      .33
                                    ------   ------     ------   ------

  Diluted net operating earnings
   per share                      $   1.65     1.49       4.69     4.23
                                    ======   ======     ======   ======

  Net income                      $186,441  156,463    530,316  407,041
  Amortization of core deposit
   and other intangible assets(1)   11,381   13,790     36,087   34,767
  Merger-related expenses(1)             -   12,417          -   37,529
                                    ------   ------     ------   ------

  Net operating income            $197,822  182,670    566,403  479,337
                                   =======  =======    =======  =======

  (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
                                    2004     2003       2004      2003
                                    ----     ----       ----      ----
                                               (in millions)

  Average assets                  $52,170   50,024     51,116   44,077
  Goodwill                         (2,904)  (2,904)    (2,904)  (2,305)
  Core deposit and other
    intangible assets                (191)    (272)      (210)    (227)
                                   ------   ------     ------   ------
  Average tangible assets         $49,075   46,848     48,002   41,545
                                   ======   ======     ======   ======


  Average equity                  $ 5,697    5,461      5,694    4,710
  Goodwill                         (2,904)  (2,904)    (2,904)  (2,305)
  Core deposit and other
   intangible assets                 (191)    (272)      (210)    (227)
  Deferred taxes                       73       78         80       67
                                   ------   ------     ------   ------
  Average tangible equity         $ 2,675    2,363      2,660    2,245
                                   ======   ======     ======   ======

Taxable-equivalent Net Interest Income. As a result of growth in average earning assets, taxable-equivalent net interest income increased to $444 million in the third quarter of 2004 from $435 million in the third quarter of 2003. Average earning assets totaled $45.9 billion in the recent quarter, compared with $42.9 billion in the year-earlier quarter. Largely offsetting the favorable impact of higher earning assets was a decline in M&T's net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, to 3.85% in 2004's third quarter from 4.02% in the corresponding period of 2003. Lower yields on loans and investment securities contributed significantly to that decline.

Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $17 million in the recent quarter, down from $34 million in the third quarter of 2003. Net loan charge-offs during this year's third quarter were $15 million, compared with $16 million in the year-earlier period. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .16% in 2004's third quarter, compared with .17% in the corresponding 2003 period. Loans classified as nonperforming totaled $181 million, or .48% of total loans at the recent quarter-end, significantly lower than $285 million or .77% at September 30, 2003. The substantial decrease in nonperforming loans at September 30, 2004 as compared with a year earlier was largely the result of several large commercial loans that are no longer in M&T's loan portfolio due to a combination of sales, payoffs or charge-offs. Loans past due 90 days or more and accruing interest totaled $140 million at the recent quarter-end, compared with $174 million a year earlier. Included in these loans at September 30, 2004 and 2003 were $112 million and $133 million, respectively, of loans guaranteed by government-related entities. Assets taken in foreclosure of defaulted loans were $16 million at September 30, 2004, compared with $20 million a year earlier.

Allowance for Credit Losses. The allowance for credit losses totaled $626 million, or 1.65% of total loans, at September 30, 2004, compared with $621 million, or 1.67%, a year earlier. The ratio of M&T's allowance for credit losses to nonperforming loans was 346% and 218% at September 30, 2004 and 2003, respectively.

Noninterest Income and Expense. Noninterest income in the recent quarter totaled $245 million, up 6% from $232 million in the year-earlier quarter. Increases in deposit account service charges, trust income, letter of credit and other credit-related fees, and a $5 million pre-tax gain from the previously noted sale of a venture capital investment, were partially offset by a $7 million decline in mortgage banking revenues.

Noninterest expense in the third quarter of 2004 totaled $407 million, up from $396 million in 2003's third quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $19 million in 2004 and $23 million in 2003, and merger-related expenses of $19 million in 2003. There were no merger-related expenses in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $388 million in the recent quarter, up from $355 million in the third quarter of 2003. The most significant contributor to the higher operating expenses in 2004's third quarter was the $25 million charitable contribution noted earlier. Also contributing to the higher level of operating expenses was a $7 million increase to the valuation allowance for the impairment of capitalized mortgage servicing rights recorded during the recently completed quarter. The addition to the valuation allowance reflects the decrease in the value of capitalized mortgage servicing rights resulting from lower residential mortgage loan interest rates at September 30, 2004 as compared with a quarter earlier. A $12 million partial reversal of the valuation allowance for the impairment of capitalized mortgage servicing rights was recorded during the third quarter of 2003, largely the result of the higher interest rate environment that existed at the end of that quarter as compared with June 30, 2003. Capitalized residential mortgage servicing rights, net of impairment valuation allowance, are included in "other assets" in M&T's consolidated balance sheet and totaled $131 million and $106 million at September 30, 2004 and 2003, respectively.

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 56.4% in the third quarter of 2004, compared with 53.2% in the year-earlier period. If the $25 million charitable contribution and the $5 million venture capital gain were excluded from the computation, M&T's efficiency ratio during 2004's third quarter would have been 53.1%.

In discussing M&T's third quarter results, Michael P. Pinto, Executive Vice President and Chief Financial Officer, noted, "M&T's performance in the recent quarter was strong and generally in line with our expectations. Overall credit quality indicators, including the levels of net charge-offs and nonperforming loans, were favorable and the loan portfolio grew during the quarter at a steady pace. While mortgage banking revenues were below 2003's third quarter, credit-related fees and other revenues more than offset that decline." Mr. Pinto commented on M&T's outlook for the remainder of 2004 by stating, "At this time and, as always, subject to the impact of future economic and political conditions, we expect that M&T's full-year GAAP-basis diluted earnings per share for 2004 will be consistent with our previously announced estimate."

Balance Sheet. M&T had total assets of $52.9 billion at September 30, 2004, up from $50.3 billion at September 30, 2003. Loans and leases, net of unearned discount, aggregated $38.0 billion at September 30, 2004, compared with $37.2 billion a year earlier. Deposits totaled $35.0 billion at the recent quarter-end, up from $32.4 billion at September 30, 2003. Total stockholders' equity was $5.7 billion at September 30, 2004, representing 10.80% of total assets, compared with $5.6 billion or 11.09% a year earlier. Common stockholders' equity per share was $49.11 and $46.49 at September 30, 2004 and 2003, respectively. Tangible equity per common share was $23.17 at September 30, 2004, compared with $20.71 at September 30, 2003. 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 $3.0 billion and $3.1 billion at September 30, 2004 and 2003, respectively.

In February 2004, M&T announced that it had been authorized by its Board of Directors to purchase up to 5,000,000 shares of its common stock. During the recent quarter, 1,435,800 shares of common stock were repurchased by M&T pursuant to such plan at an average cost per share of $94.20. During the first nine months of 2004, M&T had repurchased 5,052,600 shares of its common stock at an average cost of $90.77 per share, including 1,367,900 shares repurchased under a November 2001 authorization that was completed during 2004's initial quarter.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results at 9:00 a.m. Eastern Daylight Saving Time today, October 12, 2004. 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 also 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 13, 2004 by calling 877-519-4471, code 5255381 and 973-341-3080 for international participants. The event will be transcribed and available by noon 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.

  M&T BANK CORPORATION
  Financial Highlights

                     Three months ended            Nine months ended
   Amounts in           September 30                  September 30
    thousands,       ----------------              ---------------
    except per share  2004       2003  Change       2004      2003  Change
                     ------    ------  ------      ------   ------  ------

  Performance

  Net income       $186,441    156,463   19%   $  530,316   407,041   30%

  Per common
   share:
    Basic
     earnings      $   1.59       1.31   21%   $     4.48      3.68   22%
    Diluted
     earnings          1.56       1.28   22          4.39      3.59   22
    Cash
     dividends     $    .40        .30   33    $     1.20       .90   33

  Common shares
   outstanding:
    Average -
     diluted (1)    119,665    122,593   -2%      120,874   113,441    7%
    Period
     end (2)        116,274    119,857   -3       116,274   119,857   -3

  Return on
   (annualized):
    Average total
     assets            1.42%      1.24%              1.39%     1.23%
    Average common
     stockholders'
     equity           13.02%     11.37%             12.44%    11.55%

  Taxable-
   equivalent
   net interest
   income          $443,827    434,780    2%   $1,305,645 1,189,568   10%

  Yield on average
   earning assets      5.10%      5.26%              5.08%     5.52%
  Cost of interest-
   bearing
   liabilities         1.53%      1.51%              1.45%     1.66%
  Net interest
   spread              3.57%      3.75%              3.63%     3.86%
  Contribution of
   interest-free
   funds                .28%       .27%               .27%      .27%
  Net interest
   margin              3.85%      4.02%              3.90%     4.13%

  Net charge-offs
   to average total
   net loans
   (annualized)         .16%       .17%               .20%      .26%

  Net operating
   results (3)

  Net operating
   income          $197,822    182,670    8%   $  566,403   479,337   18%
  Diluted net
   operating
   earnings per
   common share        1.65       1.49   11          4.69      4.23   11
  Return on
   (annualized):
    Average tangible
     assets            1.60%      1.55%              1.58%     1.54%
    Average tangible
     common equity    29.42%     30.67%             28.45%    28.55%
  Efficiency
   ratio              56.38%     53.22%             54.52%    53.47%


                      At September 30
                    ------------------
  Loan quality        2004      2003    Change
                    -------    -------  ------

  Nonaccrual
   loans           $171,807    278,300  -38%
  Renegotiated
   loans              9,051      6,888   31
                    -------    -------
    Total
     nonperforming
     loans         $180,858    285,188  -37%
                    =======    =======

  Accruing loans
   past due 90
   days or
   more            $139,541    174,224  -20%

  Nonperforming
   loans to total
   net loans           .48%       .77%
  Allowance for
   credit losses
   to total net
   loans              1.65%      1.67%

  (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 is included herein.


  M&T BANK CORPORATION
  Condensed Consolidated Statement of Income

                    Three months ended            Nine months ended
                       September 30                 September 30
                    -----------------            ------------------
  Dollars in
   thousands          2004      2003    Change      2004      2003   Change
                    --------  -------   ------   --------  --------  ------

  Interest income   $583,052   564,137     3%  $1,689,785 1,576,092    7%
  Interest
   expense           143,771   133,539     8      397,405   398,637    -
                    --------   -------          --------- ---------

  Net interest
   income            439,281   430,598     2    1,292,380 1,177,455   10

  Provision for
   credit losses      17,000    34,000   -50       67,000   103,000  -35
                    --------   -------          --------- ---------

  Net interest
   income after
   provision for
   credit losses     422,281   396,598     6    1,225,380 1,074,455   14

  Other income
   Mortgage banking
    revenues          32,064    38,782   -17       90,456   117,161  -23
   Service charges
    on deposit
    accounts          93,849    90,927     3      273,278   220,158   24
   Trust income       33,713    32,314     4      101,875    80,153   27
   Brokerage
    services
    income            13,360    13,320     -       40,458    37,729    7
   Trading
    account and
    foreign exchange
    gains              3,325     4,666   -29       12,292    10,996   12
   Gain on sales
    of bank
    investment
    securities             -        58     -        2,512       541    -
   Other revenues
    from
    operations        68,614    51,527    33      184,539   130,600   41
                    --------   -------          --------- ---------
      Total
       other
       income        244,925   231,594     6      705,410   597,338   18

  Other expense
   Salaries and
    employee
    benefits         205,003   214,118    -4      608,400   543,673   12
   Equipment and
    net occupancy     42,686    48,450   -12      134,869   123,497    9
   Printing,
    postage and
    supplies           8,103     9,092   -11       26,489    27,031   -2
   Amortization of
    core deposit
    and other
    intangible
    assets            18,619    22,538   -17       59,017    56,807    4
   Other costs of
    operations       132,511   102,202    30      325,321   318,817    2
                    --------   -------          --------- ---------
     Total other
      expense        406,922   396,400     3    1,154,096 1,069,825    8

  Income before
   income taxes      260,284   231,792    12      776,694   601,968   29

  Applicable
   income taxes       73,843    75,329    -2      246,378   194,927   26
                    --------   -------          --------- ---------

  Net income        $186,441   156,463    19%  $  530,316   407,041   30%
                    ========   =======          ========= =========

  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                      2004          2003     Change
                                          ----------    ---------  ------
  ASSETS

  Cash and due from banks                $ 1,754,040    2,242,825    -22%

  Money-market assets                        173,235      306,560    -43

  Investment securities                    8,437,288    5,957,406     42

  Loans and leases, net of unearned
   discount                               37,950,316   37,159,579      2
    Less: allowance for credit losses        626,344      621,417      1
                                          ----------    ---------

    Net loans and leases                  37,323,972   36,538,162      2

  Goodwill                                 2,904,081    2,904,081      -

  Core deposit and other intangible
   assets                                    181,814      261,548    -30

  Other assets                             2,112,470    2,048,257      3
                                          ----------    ---------

    Total assets                         $52,886,900   50,258,839      5%
                                         ===========  ===========


  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at U.S.
   offices                               $ 8,416,476    8,120,990      4%

  Other deposits at U.S. offices          22,774,156   21,963,294      4

  Deposits at foreign office               3,785,067    2,330,071     62
                                          ----------    ---------

    Total deposits                        34,975,699   32,414,355      8

  Short-term borrowings                    5,650,533    4,903,249     15

  Accrued interest and other
   liabilities                               834,860    1,169,951    -29

  Long-term borrowings                     5,715,508    6,199,392     -8
                                          ----------    ---------

    Total liabilities                     47,176,600   44,686,947      6

  Stockholders' equity (1)                 5,710,300    5,571,892      2
                                          ----------    ---------

    Total liabilities and stockholders'
     equity                              $52,886,900   50,258,839      5%
                                         ===========  ===========


  (1) Reflects accumulated other comprehensive income, net of applicable
      income tax effect, of $85 thousand at September 30, 2004 and $40.6
      million at September 30, 2003.


  M&T BANK CORPORATION
  Condensed Consolidated Average
   Balance Sheet and Annualized
   Taxable-equivalent Rates
                                        Three months ended
                                           September 30
                                 ------------------------------
  Dollars in millions                 2004             2003
                                 --------------   ------------- Change in
                                 Balance   Rate   Balance  Rate  balance
                                 -------   ----   -------  ----  -------
  ASSETS

  Money-market assets             $    68   .72%       95  1.25%    -28%

  Investment securities             8,195  4.16     5,837  4.23      40

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc      9,648  4.29     9,514  4.06       1
    Real estate - commercial       13,669  5.77    12,165  5.95      12
    Real estate - consumer          2,980  5.95     4,303  5.99     -31
    Consumer                       11,314  5.50    10,971  5.90       3
                                   ------          ------
       Total loans and leases,
        net                        37,611  5.31    36,953  5.43       2
                                   ------          ------

    Total earning assets           45,874  5.10    42,885  5.26       7

  Goodwill                          2,904           2,904             -

  Core deposit and other
   intangible assets                  191             272           -30

  Other assets                      3,201           3,963           -19
                                   ------          ------

    Total assets                  $52,170          50,024             4%
                                  =======         =======


  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Interest-bearing deposits
    NOW accounts                  $   349   .28     1,227   .34     -72%
    Savings deposits               15,432   .57    14,320   .70       8
    Time deposits                   7,265  2.20     6,739  2.33       8
    Deposits at foreign office      3,334  1.42     1,340   .95     149
                                   ------          ------
       Total interest-bearing
        deposits                   26,380  1.12    23,626  1.16      12
                                   ------          ------

  Short-term borrowings             5,281  1.46     4,870  1.03       8
  Long-term borrowings              5,789  3.44     6,595  3.12     -12
                                   ------          ------

  Total interest-bearing
   liabilities                     37,450  1.53    35,091  1.51       7

  Noninterest-bearing deposits      8,189           8,328            -2

  Other liabilities                   834           1,144           -27
                                   ------          ------

    Total liabilities              46,473          44,563             4

  Stockholders' equity              5,697           5,461             4
                                   ------          ------
    Total liabilities and
     stockholders' equity         $52,170          50,024             4%
                                  =======         =======

  Net interest spread                      3.57            3.75
  Contribution of interest-free
   funds                                    .28             .27
  Net interest margin                      3.85%           4.02%



  M&T BANK CORPORATION
  Condensed Consolidated Average
   Balance Sheet and Annualized
   Taxable-equivalent Rates
                                        Nine months ended
                                           September 30
                                  -----------------------------
  Dollars in millions                 2004             2003
                                  --------------  -------------  Change in
                                  Balance  Rate   Balance  Rate   balance
                                  -------  ----   -------  ----   -------
  ASSETS

  Money-market assets             $    76   .82%      255  1.27%    -70%

  Investment securities             7,886  4.14     5,051  4.57      56

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc      9,405  4.22     8,295  4.28      13
    Real estate - commercial       13,053  5.69    11,313  6.19      15
    Real estate - consumer          3,093  5.93     3,783  6.18     -18
    Consumer                       11,238  5.54     9,775  6.11      15
                                   ------          ------
       Total loans and leases,
        net                        36,789  5.30    33,166  5.70      11
                                   ------          ------

    Total earning assets           44,751  5.08    38,472  5.52      16

  Goodwill                          2,904           2,305            26

  Core deposit and other
   intangible assets                  210             227            -8

  Other assets                      3,251           3,073             6
                                   ------          ------

    Total assets                  $51,116          44,077            16%
                                  =======          ======


  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Interest-bearing deposits
    NOW accounts                  $   609   .33       975   .36     -37%
    Savings deposits               15,286   .59    12,808   .80      19
    Time deposits                   6,901  2.18     6,704  2.44       3
    Deposits at foreign office      3,000  1.15     1,130  1.09     165
                                   ------          ------
       Total interest-bearing
        deposits                   25,796  1.07    21,617  1.30      19
                                   ------          ------

  Short-term borrowings             5,065  1.17     4,388  1.17      15
  Long-term borrowings              5,741  3.39     6,050  3.30      -5
                                   ------          ------

  Total interest-bearing
   liabilities                     36,602  1.45    32,055  1.66      14

  Noninterest-bearing deposits      7,917           6,496            22

  Other liabilities                   903             816            11
                                   ------          ------

    Total liabilities              45,422          39,367            15

  Stockholders' equity              5,694           4,710            21
                                   ------          ------

    Total liabilities and
     stockholders' equity         $51,116          44,077            16%
                                  =======         =======

  Net interest spread                      3.63            3.86
  Contribution of interest-free
   funds                                    .27             .27
  Net interest margin                      3.90%           4.13%

 

Audio: http://ir.mandtbank.com/conference.cfm

 

CONTACT:

Donald J. MacLeod

716-842-5138