Enable Java Script

Either your browser does not support JavaScript, or you have JavaScript disabled.
You must have a JavaScript-enabled browser to use this site.

Microsoft Internet Explorer

To turn on JavaScript in Internet Explorer, follow these steps:

  1. On the Tools menu, click Internet Options, and then click the Security tab.
  2. Click the Web content zone that you are using (for example, click Local Intranet),
    and then click Custom Level button.
  3. Locate Active scripting under Scripting settings. Click to select the Enable radio button.
  4. Click OK button on Security Settings and Internet Options windows to save your changes.

To download Internet Explorer 7, click here.

Firefox

To turn on JavaScript in Firefox, follow these steps:

  1. On the Tools menu, click Options.., and then click the Content tab.
  2. Click to select the Enable JavaScript check box.
  3. Click OK button to save the setting.

To download Firefox 2, click here.

Safari

To turn on JavaScript in Safari, follow these steps:

  1. Open Safari
  2. On the Safari menu, click on Preferences.
  3. Click the Security icon.
  4. Click on Enable JavaScript next to the Web Content section if it is not checked
  5. Close the Preferences window
  6. Close and restart Safari.

Opera 9.xx series

To turn on JavaScript in Opera 9.xx series, follow these steps:

  1. Open Opera.
  2. On the Tools menu, click Preferences.
  3. Click Content in the Preferences list.
  4. Check the box next to Enable JavaScript.
  5. Click the JavaScript Options button to open the JavaScript Options box.
  6. Check the boxes that you want to allow.
  7. Click OK.
  8. Click OK.

Google Chrome(v0.4.154.23)

To turn on JavaScript in Google Chrome(v0.4.154.23), follow these steps:

  1. First close any open Chrome windows.
  2. Right click on a blank area of your Desktop.
  3. Select New.
  4. Create a new Shortcut with the following in the "Type the location of the item:" text box:
    • For Windows Vista:
      %userprofile%\Local\Google\Chrome\Application\chrome.exe -enable-javascript
    • For Windows XP:
      "%userprofile%\Local Settings\Application Data\Google\chrome.exe" -enable-javascript
      Note: You'll have to enclose the file path for Windows XP in quotes due to there being spaces in it.
M&T Bank Corporation Announces Financial Results for 2004
PRNewswire-FirstCall
BUFFALO, N.Y.

M&T Bank Corporation ("M&T") today reported its results of operations for 2004.

GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") rose 21% to $6.00 in 2004 from $4.95 in 2003. GAAP-basis net income in 2004 totaled $723 million, 26% above the $574 million earned in 2003. GAAP-basis net income for 2004 expressed as a rate of return on average assets and average common stockholders' equity was 1.40% and 12.67%, respectively, compared with 1.27% and 11.62%, respectively, in 2003.

M&T's financial results for 2004 reflect the full-year 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 in 2003 were $39 million, after applicable tax effect, or $.34 per diluted share. Such expenses 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 with those of M&T. There were no similar expenses in 2004.

For the fourth quarter of 2004, GAAP-basis diluted earnings per share increased 20% to $1.62 from $1.35 in the similar 2003 period. On the same basis, net income for the recently completed quarter rose to $192 million, 15% higher than $167 million in the final quarter of 2003. During the fourth quarter of 2003, M&T incurred merger-related expenses associated with the Allfirst acquisition totaling $2 million, after applicable tax effect, or $.01 per diluted share. Expressed as an annualized rate of return on average assets and average common stockholders' equity, GAAP-basis net income for 2004's final quarter was 1.45% and 13.37%, respectively, compared with 1.35% and 11.77%, 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, in 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 $10 million ($.08 per diluted share) in the fourth quarter of 2004, compared with $13 million ($.11 per diluted share) in the corresponding 2003 quarter. Similar amortization charges, after tax effect, for the years ended December 31, 2004 and 2003 were $46 million ($.38 per diluted share) and $48 million ($.41 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 $6.38 for 2004, 12% higher than $5.70 in 2003. Net operating income for 2004 rose 16% to $769 million from $661 million in 2003. Net operating income in 2004 expressed as a rate of return on average tangible assets and average tangible stockholders' equity was 1.59% and 28.76%, respectively, compared with 1.55% and 28.49% in 2003.

For 2004's fourth quarter, diluted net operating earnings per share were $1.70, up 16% from $1.47 in the similar 2003 period. Net operating income for the final quarter of 2004 increased to $202 million, 11% above $182 million in the year-earlier period. For the quarter ended December 31, 2004, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.62% and 29.69%, respectively, compared with 1.57% and 28.33% in the year-earlier 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      Year ended
                                       December 31         December 31
                                      2004     2003       2004     2003
                                      ----     ----       ----     ----
                                      (in thousands, except per share)

  Diluted earnings per share      $   1.62     1.35       6.00     4.95
  Amortization of core deposit
   and other intangible assets(1)      .08      .11        .38      .41
  Merger-related expenses(1)             -      .01          -      .34
                                  --------  -------    -------  -------
  Diluted net operating earnings
   per share                      $   1.70     1.47       6.38     5.70
                                  ========  =======    =======  =======

  Net income                      $192,205  166,901    722,521  573,942
  Amortization of core deposit
   and other intangible assets(1)   10,010   13,059     46,097   47,826
  Merger-related expenses(1)             -    1,634          -   39,163
                                  --------  -------    -------  -------
  Net operating income            $202,215  181,594    768,618  660,931
                                  ========  =======    =======  =======
  (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      Year ended
                                      December 31         December 31
                                     2004     2003       2004     2003
                                     ----     ----       ----     ----
                                              (in millions)

  Average assets                  $52,725   49,123     51,517   45,349
  Goodwill                         (2,904)  (2,904)    (2,904)  (2,456)
  Core deposit and other
   intangible assets                 (174)    (251)      (201)    (233)
                                  --------  -------    -------  -------
  Average tangible assets         $49,647   45,968     48,412   42,660
                                  ========  =======    =======  =======

  Average equity                  $ 5,721    5,625      5,701    4,941
  Goodwill                         (2,904)  (2,904)    (2,904)  (2,456)
  Core deposit and other
   intangible assets                 (174)    (251)      (201)    (233)
  Deferred taxes                       67       73         76       68
                                  --------  -------    -------  -------
  Average tangible equity         $ 2,710    2,543      2,672    2,320
                                  ========  =======    =======  =======

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income rose 8% to $1.75 billion in 2004 from $1.62 billion in 2003, largely due to higher average earning assets. Average loans outstanding grew 9% to $37.1 billion in 2004 from $34.0 billion in 2003. The 2003 average balance reflected the impact of the $10.3 billion of loans obtained in the April 1, 2003 acquisition of Allfirst for the final nine months of that year, while the 2004 average balance reflects a full-year impact of Allfirst-related loans. Average investment securities increased to $8.0 billion in 2004 from $5.3 billion in 2003. Net interest margin, or taxable-equivalent net interest income expressed as a percentage of average earning assets, declined to 3.88% in 2004 from 4.09% in 2003. The decrease in net interest margin was largely the result of lower yields earned on loans and investment securities.

During 2004's final quarter, taxable-equivalent net interest income was $446 million, up 5% from $425 million in the corresponding quarter of 2003. Average earning assets and annualized net interest margin in the fourth quarter of 2004 were $46.5 billion and 3.82%, respectively, compared with $42.7 billion and 3.96% in the similar 2003 period.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $95 million in 2004, down from $131 million in 2003. Net loan charge-offs in 2004 totaled $82 million, or .22% of average loans outstanding, improved from $97 million or .28% of average loans in 2003. The provision for credit losses was $28 million during the fourth quarter of both 2004 and 2003. Net charge-offs of loans were $27 million in 2004's final quarter, or an annualized .29% of average loans outstanding, compared with $32 million or .35% during the corresponding 2003 quarter.

Loans classified as nonperforming aggregated $172 million, or .45% of total loans at December 31, 2004, significantly lower than $240 million or .67% a year earlier. The substantial decrease in nonperforming loans at the recent year-end as compared with December 31, 2003 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 $155 million at each of the recent year-end and December 31, 2003. Included in the past due but accruing amounts were loans guaranteed by government-related entities of $118 million and $125 million at December 31, 2004 and 2003, respectively. Assets taken in foreclosure of defaulted loans were $13 million at December 31, 2004, compared with $20 million at December 31, 2003.

Allowance for Credit Losses. The allowance for credit losses totaled $627 million, or 1.63% of total loans, at December 31, 2004, compared with $614 million, or 1.72%, a year earlier. The decline in the allowance as a percentage of loans reflects improvement in various credit factors, including the previously noted decreases in net charge-offs and nonperforming loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 364% and 256% at December 31, 2004 and 2003, respectively.

Noninterest Income and Expense. Noninterest income in 2004 grew to $943 million, 13% higher than $831 million in 2003. The increase in such income was attributable to the full-year impact of revenues related to operations in market areas associated with the former Allfirst franchise. Excluding Allfirst-related revenues, higher levels of service charges on deposit accounts and letter of credit and other credit-related fees were offset by a decrease in mortgage banking revenues resulting from a lower level of loan originations in 2004. Noninterest income of $238 million in the fourth quarter of 2004 was up 2% from $234 million in the corresponding quarter of 2003, largely due to higher revenues from providing deposit account services.

Noninterest expense in 2004 totaled $1.52 billion, 5% higher than $1.45 billion in 2003. Included in such amounts are expenses considered to be "nonoperating" in nature, consisting of amortization of core deposit and other intangible assets of $75 million in 2004 and $78 million in 2003, and merger- related expenses of $60 million in 2003. As noted earlier, there were no merger-related expenses in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $1.44 billion in 2004, compared with $1.31 billion in 2003. The 10% increase in such operating expenses was largely related to the full-year impact in 2004 of operations formerly associated with Allfirst. Also contributing to the increase was a $25 million cash contribution made by M&T Bank, M&T's wholly owned principal bank subsidiary, to The M&T Charitable Foundation, a tax-exempt, private charitable foundation, during 2004's third quarter.

Noninterest expense in the fourth quarter of 2004 totaled $362 million, down from $378 million in the year-earlier quarter. Included in such amounts were amortization of core deposit and other intangible assets of $16 million in 2004 and $21 million in 2003, and merger-related expenses of $3 million in 2003. Exclusive of these nonoperating expenses, noninterest operating expenses were $346 million in the recently completed quarter, compared with $354 million in the final quarter of 2003.

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 53.5% in 2004, compared with 53.6% in 2003. If the $25 million charitable contribution was excluded from the computation, M&T's efficiency ratio for 2004 would have been 52.6%. During 2004's fourth quarter, M&T's efficiency ratio was 50.6%, compared with 53.9% in the year-earlier quarter.

Balance Sheet. M&T's total assets increased 6% to $52.9 billion at December 31, 2004 from $49.8 billion a year earlier. Loans and leases, net of unearned discount, aggregated $38.4 billion at the 2004 year-end, up 7% from $35.8 billion at December 31, 2003. Deposits rose to $35.4 billion at December 31, 2004 from $33.1 billion at the end of 2003. Total stockholders' equity was $5.7 billion at December 31, 2004, representing 10.82% of total assets, compared with $5.7 billion or 11.47% a year earlier. Common stockholders' equity per share was $49.68 at December 31, 2004, compared with $47.55 a year earlier. Tangible equity per common share was $23.62 and $21.97 at December 31, 2004 and 2003, respectively. 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 December 31, 2004 and 2003, respectively.

During 2004, M&T repurchased 6,520,800 shares of its common stock under authorized repurchase plans at an average cost of $93.59 per share. In the fourth quarter of 2004, a total of 1,468,200 shares were repurchased by M&T at an average per share cost of $103.27, including 152,900 shares under a new plan authorized in December 2004 by M&T's Board of Directors allowing for the purchase of up to 5,000,000 shares of common stock.

Commenting on M&T's financial results for 2004, Michael P. Pinto, Executive Vice President and Chief Financial Officer, said "We are pleased with M&T's performance in 2004, particularly given the challenges resulting from the economic environment we faced. Most encouraging are the key credit quality trends, which reflect lower levels of net charge-offs and nonperforming loans." Looking ahead to 2005, Mr. Pinto noted, "Subject to the impact of future economic and political conditions, our present estimate of GAAP-basis diluted earnings per share for 2005 is in the range of $6.60 to $6.80."

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full year financial results at 9:00 a.m. Eastern Time today, January 11, 2005. 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 January 12, 2005 by calling 877-519-4471, code 5543168 and 973-341-3080 for international participants. The event will be transcribed 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 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:  Donald J. MacLeod
             (716) 842-5138



  M&T BANK CORPORATION
  Financial Highlights

  Amounts in       Three months ended                Year ended
   thousands,          December 31                   December 31
   except        --------------------         -----------------------
   per share       2004         2003  Change      2004         2003   Change
                 --------    -------- ------  ----------      ------- ------
  Performance
  -----------
  Net income     $192,205    166,901   15%    $  722,521      573,942   26%

  Per common
   share:
    Basic
     earnings    $   1.66       1.39   19%    $     6.14         5.08   21%
    Diluted
     earnings        1.62       1.35   20           6.00         4.95   21
    Cash
     dividends       $.40        .30   33     $     1.60         1.20   33

  Common shares
   outstanding:
    Average -
     diluted (1)  119,010    123,328   -4%       120,406      115,932    4%
    Period
     end (2)      115,335    120,231   -4        115,335      120,231   -4

  Return on
   (annualized):
    Average
     total assets    1.45%      1.35%               1.40%        1.27%
    Average common
     stockholders'
     equity         13.37%     11.77%              12.67%       11.62%

  Taxable-
   equivalent
   net interest
   income        $446,257    425,500    5%    $1,751,902    1,615,068    8%

  Yield on
   average
   earning
   assets            5.24%      5.16%               5.13%        5.42%
  Cost of interest
   -bearing
   liabilities       1.75%      1.48%               1.53%        1.61%
  Net interest
   spread            3.49%      3.68%               3.60%        3.81%
  Contribution of
   interest-free
   funds              .33%       .28%                .28%         .28%
  Net interest
   margin            3.82%      3.96%               3.88%        4.09%

  Net charge-offs
   to average total
   net loans
   (annualized)       .29%       .35%                .22%         .28%

  Net operating
   results (3)
  -------------
  Net operating
   income        $202,215    181,594   11%    $  768,618      660,931   16%
  Diluted net
   operating
   earnings per
   common share      1.70       1.47   16           6.38         5.70   12
  Return on
   (annualized):
    Average tangible
     assets          1.62%      1.57%               1.59%        1.55%
    Average tangible
     common equity  29.69%     28.33%              28.76%       28.49%
  Efficiency ratio  50.56%     53.93%              53.51%       53.59%


                     At December 31
                  --------------------
  Loan quality     2004        2003   Change
  ------------   --------    -------  ------
  Nonaccrual
   loans         $162,013    232,983  -30%
  Renegotiated
   loans           10,437      7,309   43
                 --------    -------
    Total
     nonperforming
     loans       $172,450    240,292  -28%
                 ========    =======
  Accruing loans
   past due 90
   days or more  $154,590    154,759    -%

  Nonperforming
   loans to total
   net loans          .45%       .67%
  Allowance for
   credit losses
   to total
   net loans         1.63%      1.72%


  (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

  Dollars in       Three months ended                Year ended
   thousands           December 31                   December 31
                 --------------------         -----------------------
                     2004      2003  Change      2004         2003    Change
                   --------  ------- ------   ----------    --------- ------
  Interest income  $608,947  550,473   11%    $2,298,732    2,126,565    8%
  Interest expense  166,755  129,173   29        564,160      527,810    7
                   --------  -------          ----------    ---------
  Net interest
   income           442,192  421,300    5      1,734,572    1,598,755    8

  Provision for
   credit losses     28,000   28,000    -         95,000      131,000  -27
                   --------  -------          ----------    ---------
  Net interest
   income after
   provision for
   credit losses    414,192  393,300    5      1,639,572    1,467,755   12

  Other income
    Mortgage banking
     revenues        33,897   31,944    6        124,353      149,105  -17
    Service charges
     on deposit
     accounts        93,023   89,591    4        366,301      309,749   18
    Trust income     34,421   34,467    -        136,296      114,620   19
    Brokerage
     services income 13,282   13,455   -1         53,740       51,184    5
    Trading account
     and foreign
     exchange gains   7,143    4,993   43         19,435       15,989   22
    Gain on sales of
     bank investment
     securities         362    1,946    -          2,874        2,487    -
    Other revenues
     from operations 55,431   57,361   -3        239,970      187,961   28
                   --------  -------          ----------    ---------
      Total other
       income       237,559  233,757    2        942,969      831,095   13

  Other expense
    Salaries and
     employee
     benefits       198,152  196,651    1        806,552      740,324    9
    Equipment and
     net occupancy   44,726   47,126   -5        179,595      170,623    5
    Printing, postage
     and supplies     7,987    9,954  -20         34,476       36,985   -7
    Amortization of
     core deposit and
     other intangible
     assets          16,393   21,345  -23         75,410       78,152   -4
    Other costs of
     operations      94,664  103,279   -8        419,985      422,096   -1
                   --------  -------          ----------    ---------
      Total other
       expense      361,922  378,355   -4      1,516,018    1,448,180    5

  Income before
   income taxes     289,829  248,702   17      1,066,523      850,670   25

  Applicable
   income taxes      97,624   81,801   19        344,002      276,728   24
                   --------  -------          ----------    ---------
  Net income       $192,205  166,901   15%    $  722,521      573,942   26%
                   ========  =======          ==========    =========

  Summary of merger-
   related expenses
   included above:
    Salaries and
     employee
     benefits      $   -         426          $     -           8,542
    Equipment and
     net occupancy     -         472                -           2,126
    Printing, postage
     and supplies      -         241                -           3,216
    Other costs
     of operations     -       1,394                -          46,503
                   --------  -------          ----------    ---------
      Total merger-
       related
       expenses    $   -       2,533          $     -          60,387
                   ========  =======          ==========    =========


  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet

                                                    December 31
                                             -----------------------
  Dollars in thousands                           2004        2003     Change
                                             ----------    ---------  ------
  ASSETS

  Cash and due from banks                   $ 1,334,628    1,877,494    -29%

  Money-market assets                           199,364      250,315    -20

  Investment securities                       8,474,619    7,259,150     17

  Loans and leases, net of unearned discount 38,398,477   35,772,435      7
    Less: allowance for credit losses           626,864      614,058      2
                                             ----------   ----------
    Net loans and leases                     37,771,613   35,158,377      7

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

  Core deposit and other intangible assets      165,507      240,830    -31

  Other assets                                2,088,909    2,135,834     -2
                                             ----------   ----------
    Total assets                            $52,938,721   49,826,081      6%
                                             ==========   ==========

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at U.S.
   offices                                  $ 8,417,365    8,411,296      -%

  Other deposits at U.S. offices             22,779,176   22,494,197      1

  Deposits at foreign office                  4,232,932    2,209,451     92
                                             ----------   ----------
    Total deposits                           35,429,473   33,114,944      7

  Short-term borrowings                       4,703,664    4,442,246      6

  Accrued interest and other liabilities        727,411    1,016,256    -28

  Long-term borrowings                        6,348,559    5,535,425     15
                                             ----------   ----------
    Total liabilities                        47,209,107   44,108,871      7

  Stockholders' equity (1)                    5,729,614    5,717,210      -
                                             ----------   ----------
    Total liabilities and stockholders'
     equity                                 $52,938,721   49,826,081      6%
                                             ==========   ==========

  (1)  Reflects accumulated other comprehensive loss, net of applicable
       income tax effect, of $17.2 million at December 31, 2004 and
       accumulated other comprehensive income, net of applicable income tax
       effect, of $25.7 million at December 31, 2003.


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

                                Three months ended
                                    December 31
                        ---------------------------------
  Dollars in millions         2004              2003
                        --------------    ---------------     Change in
                        Balance   Rate    Balance   Rate       balance
                        -------   ----    -------   -----     --------
  ASSETS

  Money-market assets   $    67    .87%        99   1.00%        -32%

  Investment securities   8,326   4.18      6,212   3.98          34

  Loans and leases, net
   of unearned discount
    Commercial,
     financial, etc       9,919   4.52      9,202   4.00           8
    Real estate
     - commercial        13,894   5.93     12,344   5.86          13
    Real estate
     - consumer           3,161   5.89      3,758   6.06         -16
    Consumer             11,168   5.71     11,057   5.79           1
                         ------            ------
      Total loans and
       leases, net       38,142   5.48     36,361   5.37           5
                         ------            ------
    Total earning assets 46,535   5.24     42,672   5.16           9

  Goodwill                2,904             2,904                  -

  Core deposit and other
   intangible assets        174               251                -31


  Other assets            3,112             3,296                 -6
                         ------            ------
    Total assets        $52,725            49,123                  7%
                         ======            ======

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing
   deposits
    NOW accounts        $   375    .30      1,160    .33         -68%
    Savings deposits     15,363    .65     14,674    .70           5
    Time deposits         7,089   2.36      6,440   2.29          10
    Deposits at
     foreign office       3,539   1.94      2,378    .96          49
                         ------            ------
      Total interest-
       bearing deposits  26,366   1.28     24,652   1.12           7
                         ------            ------
  Short-term borrowings   5,370   1.98      4,162   1.02          29
  Long-term borrowings    6,104   3.62      5,922   3.27           3
                         ------            ------
  Total interest-bearing
   liabilities           37,840   1.75     34,736   1.48           9

  Noninterest-bearing
   deposits               8,402             7,705                  9

  Other liabilities         762             1,057                -28
                         ------            ------
  Total liabilities      47,004            43,498                  8

  Stockholders' equity    5,721             5,625                  2
                         ------            ------
  Total liabilities and
   stockholders' equity $52,725            49,123                  7%
                         ======            ======
  Net interest spread             3.49              3.68
  Contribution of
   interest-free funds             .33               .28
  Net interest margin             3.82%             3.96%


                                    Year ended
                                    December 31
                        ---------------------------------
  Dollars in millions         2004              2003
                        --------------    ---------------     Change in
                        Balance   Rate    Balance   Rate       balance
                        -------   ----    -------   -----     --------
  ASSETS

  Money-market assets   $    74    .83%       216   1.24%        -66%
  Investment securities   7,997   4.15      5,344   4.40          50

  Loans and leases, net
   of unearned discount
    Commercial,
     financial, etc       9,534   4.30      8,523   4.21          12
    Real estate
     - commercial        13,264   5.75     11,573   6.10          15
    Real estate
     - consumer           3,111   5.92      3,777   6.15         -18
    Consumer             11,220   5.58     10,098   6.02          11
                         ------            ------
      Total loans and
       leases, net       37,129   5.34     33,971   5.61           9
                         ------            ------
    Total earning assets 45,200   5.13     39,531   5.42          14

  Goodwill                2,904             2,456                 18

  Core deposit and other
   intangible assets        201               233                -14

  Other assets            3,212             3,129                  3
                         ------            ------
    Total assets        $51,517            45,349                 14%
                         ======            ======

  LIABILITIES AND STOCKHOLDERS' EQUITY


  Interest-bearing
   deposits
    NOW accounts        $   550    .33      1,021    .35         -46%
    Savings deposits     15,305    .60     13,278    .77          15
    Time deposits         6,948   2.23      6,638   2.41           5
    Deposits at
     foreign office       3,136   1.37      1,445   1.04         117
                         ------            ------
      Total interest-
       bearing deposits  25,939   1.12     22,382   1.25          16
                         ------            ------
  Short-term borrowings   5,142   1.38      4,331   1.13          19
  Long-term borrowings    5,832   3.45      6,018   3.29          -3
                         ------            ------
  Total interest-bearing
   liabilities           36,913   1.53     32,731   1.61          13

  Noninterest-bearing
   deposits               8,039             6,801                 18

  Other liabilities         864               876                 -1
                         ------            ------
  Total liabilities      45,816            40,408                 13

  Stockholders' equity    5,701             4,941                 15
                         ------            ------
  Total liabilities and
   stockholders' equity $51,517            45,349                 14%
                         ======            ======
  Net interest spread             3.60              3.81
  Contribution of
   interest-free funds             .28               .28
  Net interest margin             3.88%             4.09%

 

CONTACT:

Donald J. MacLeod

+1-716-842-5138