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

M&T Bank Corporation ("M&T") today reported its results of operations for the quarter ended June 30, 2005.

GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2005 were $1.69, up 10% from $1.53 in the corresponding period of 2004. GAAP-basis net income in the recently completed quarter totaled $197 million, 7% higher than $184 million in the second quarter of 2004. GAAP-basis net income for 2005's second quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.46% and 13.73%, respectively, compared with 1.45% and 13.12%, respectively, in the year-earlier quarter.

For the first two quarters of 2005, GAAP-basis diluted earnings per share were $3.31, up 17% from $2.83 in the similar 2004 period. On the same basis, net income for the first half of 2005 totaled $386 million, 12% higher than $344 million a year earlier. GAAP-basis net income for the six-month period ended June 30, 2005 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.45% and 13.57%, respectively, compared with 1.37% and 12.15%, respectively, in the corresponding 2004 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, was $9 million ($.07 per diluted share) in the recent quarter, compared with $12 million ($.10 per diluted share) in the year-earlier quarter. Similar after tax effect amortization charges for the six-month periods ended June 30, 2005 and 2004 were $18 million ($.15 per diluted share) and $25 million ($.20 per diluted share), respectively. There were no merger-related expenses in either 2005 or 2004.

Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets, were $1.76 in the recent quarter, a rise of 8% from $1.63 in the second quarter of 2004. Net operating income during 2005's second quarter grew 5% to $205 million from $196 million in the corresponding 2004 period. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, net operating income was 1.62% and 29.88%, respectively, in 2005's second quarter, compared with 1.64% and 30.12% in the second quarter of 2004.

For the six-month period ended June 30, 2005, diluted net operating earnings per share were $3.46, 14% higher than $3.03 in the year-earlier period. Net operating income for the first two quarters of 2005 rose 10% to $405 million from $369 million in the similar 2004 period. For the first half of 2005, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.61% and 29.77%, respectively, compared with 1.56% and 27.95% in the first six months of 2004.

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    Six months ended
                                         June 30             June 30
                                      2005     2004       2005     2004
                                      ----     ----       ----     ----
                                     (in thousands, except per share)

  Diluted earnings per share      $   1.69     1.53       3.31     2.83
  Amortization of core deposit
   and other intangible assets(1)      .07      .10        .15      .20
                                  -------- --------   -------- --------

  Diluted net operating earnings
   per share                      $   1.76     1.63       3.46     3.03
                                  ======== ========   ======== ========

  Net income                      $196,834  184,385    386,124  343,875
  Amortization of core deposit
   and other intangible assets(1)    8,581   11,773     18,426   24,706
                                  -------- --------   -------- --------
  Net operating income            $205,415  196,158    404,550  368,581
                                  ======== ========   ======== ========

  (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    Six months ended
                                        June 30             June 30
                                     2005     2004       2005     2004
                                     ----     ----       ----     ----
                                              (in millions)

  Average assets                  $53,935   51,251     53,622   50,583
  Goodwill                         (2,904)  (2,904)    (2,904)  (2,904)
  Core deposit and other
   intangible assets                 (142)    (210)      (150)    (220)
  Deferred taxes                       42        -         24        -
                                  -------- --------   -------- --------
  Average tangible assets         $50,931   48,137     50,592   47,459
                                  ======== ========   ======== ========

  Average equity                  $ 5,749    5,654      5,736    5,693
  Goodwill                         (2,904)  (2,904)    (2,904)  (2,904)
  Core deposit and other
   intangible assets                 (142)    (210)      (150)    (220)
  Deferred taxes                       55       79         58       83
                                  -------- --------   -------- --------
  Average tangible equity         $ 2,758    2,619      2,740    2,652
                                  ======== ========   ======== ========

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income increased 3% to $452 million in the second quarter of 2005 from $438 million in the corresponding 2004 quarter. Average loans outstanding totaled $39.2 billion in the recent quarter, 6% higher than $36.9 billion in the second quarter of 2004. Such growth was attributable to 11% increases in average outstanding balances of commercial and commercial real estate loans. Average consumer loans declined 4% from the year-earlier period, as higher outstanding balances of home equity lines of credit were more than offset by lower automobile loans and leases and planned runoff of other second-mortgage loans. Partially offsetting the favorable impact of higher outstanding loan balances was a narrowing of M&T's net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets. Net interest margin declined to 3.78% in the recent quarter from 3.92% in the second quarter of 2004. Such decline reflects the impact of rising short-term interest rates over the past twelve months, which resulted in the rates paid on interest-bearing liabilities rising more rapidly than the yields on many earning assets

Provision for Credit Losses/Asset Quality. As a percentage of average loans outstanding, net charge-offs in the recent quarter were at their lowest level since 2000. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .14% in 2005's second quarter, significantly improved from .23% in the year-earlier quarter. In dollar total, net charge- offs were $14 million in the recent quarter, down 35% from $21 million in the second quarter of 2004. Reflecting the reduced level of net charge-offs, as well as improvements in other credit quality indicators, the provision for credit losses in the second quarter of 2005 was $19 million, down from $30 million in the corresponding 2004 quarter. Loans classified as nonperforming totaled $184 million, or .46% of total loans at June 30, 2005, compared with $190 million or .51% a year earlier. Loans past due 90 days or more and accruing interest were $123 million at the recent quarter-end, compared with $135 million a year earlier. Included in those past due loans at June 30, 2005 and 2004 were $99 million and $112 million, respectively, of loans guaranteed by government-related entities. Assets taken in foreclosure of defaulted loans were $8 million at June 30, 2005, compared with $19 million at June 30, 2004.

Allowance for Credit Losses. The allowance for credit losses totaled $637 million, or 1.60% of total loans, at June 30, 2005, compared with $625 million, or 1.66%, 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 the rate of net loan charge-offs and the level of nonperforming loans. At December 31, 2004, the allowance for credit losses totaled $627 million, or 1.63% of total loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 346%, 328% and 364% at June 30, 2005, June 30, 2004 and December 31, 2004, respectively.

Noninterest Income and Expense. Noninterest income in the recent quarter totaled $245 million, up 6% from $232 million in the second quarter of 2004. Contributing to the improvement were higher deposit account service charges, trading account and foreign exchange gains, letter of credit and other credit-related fees, and gains on sales of commercial lease equipment and other property.

Noninterest expense in the second quarter of 2005 totaled $380 million, 7% above $357 million in 2004's second quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $14 million in 2005 and $19 million in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $366 million in the recently completed quarter, up from $338 million in the second quarter of 2004. The most significant contributor to that rise in operating expenses was a $27 million increase in the provision for impairment of capitalized mortgage servicing rights. Reflecting a decrease in the value of such servicing rights that resulted from lower residential mortgage loan interest rates at the end of the recent quarter as compared with three months earlier, a $5 million impairment provision was recorded during the second quarter of 2005. In contrast, a partial reversal of the valuation allowance for capitalized mortgage servicing rights was recorded in last year's second quarter that lowered operating expenses by $22 million.

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 52.6% in the second quarter of 2005, compared with 50.4% in the year-earlier period.

Reflecting on M&T's second quarter results, Rene F. Jones, Senior Vice President and Chief Financial Officer, stated, "M&T's financial performance during the recent quarter was strong and day-to-day operating results remained consistent with our previous expectations for 2005. Favorable trends have continued regarding the quality of our loan portfolios, including historically low levels of net charge-offs and nonperforming loans as a percentage of loans outstanding. In addition, our focus on controlling operating expenses is paying off, as reflected in our results. In fact, excluding the mortgage servicing rights adjustments, operating expenses in the first half of 2005 were lower than in 2004."

Balance Sheet. M&T had total assets of $54.5 billion at June 30, 2005, up from $52.1 billion at June 30, 2004. Loans and leases, net of unearned discount, rose 6% to $39.9 billion at the recent quarter-end, compared with $37.5 billion a year earlier. Deposits totaled $37.3 billion at June 30, 2005, up 7% from $35.0 billion at June 30, 2004. Total stockholders' equity was $5.8 billion at June 30, 2005, representing 10.71% of total assets, compared with $5.7 billion or 10.86% a year earlier. Common stockholders' equity per share was $51.20 and $48.21 at June 30, 2005 and 2004, respectively. Tangible equity per common share was $25.00 at June 30, 2005, compared with $22.40 at June 30, 2004. 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 at each of June 30, 2005 and 2004.

In December 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, 624,000 shares of common stock were repurchased by M&T pursuant to such plan at an average cost per share of $102.21. Through June 30, 2005, M&T had repurchased 2,643,300 shares of its common stock pursuant to such plan at an average cost of $101.73 per share.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 9:00 a.m. Eastern Daylight Saving Time. Those wishing to participate in the call may dial 877-780-2276. International participants, using any applicable international calling codes, may dial 973-582-2700. 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 Wednesday, July 13, 2005 by calling 877-519-4471, code 6201040 and 973-341-3080 for international participants. The event will also be archived and available by 3:00 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; prepayment speeds, loan originations and credit losses; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively; 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; 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, either nationally or in the states in which we do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

  M&T BANK CORPORATION
  Financial Highlights

  Amounts in thousands,
   except per share

                       Three months ended            Six months ended
                            June 30                      June 30
                        --------------               --------------
                        2005      2004   Change      2005      2004  Change
                        ----      ----   ------      ----      ----  ------

  Performance
  Net income        $196,834   184,385       7%  $386,124   343,875    12%
  Per common share:
   Basic earnings   $   1.73      1.56      11%  $   3.38      2.89    17%
   Diluted earnings     1.69      1.53      10       3.31      2.83    17
   Cash dividends   $    .45       .40      13   $    .85       .80     6

  Common shares
   outstanding:
   Average -
    diluted(1)       116,422   120,655      -4%   116,801   121,486    -4%
   Period end(2)     114,011   117,324      -3    114,011   117,324    -3

  Return on
  (annualized):
   Average total
    assets              1.46%     1.45%              1.45%     1.37%
   Average common
    stockholders'
    equity             13.73%    13.12%             13.57%    12.15%

  Taxable-equivalent
   net interest
   income           $451,765   438,285       3%  $897,940   861,818     4%

  Yield on average
   earning assets       5.70%     5.06%              5.61%     5.08%
  Cost of
   interest-bearing
   liabilities          2.34%     1.39%              2.20%     1.41%

  Net interest spread   3.36%     3.67%              3.41%     3.67%
  Contribution of
   interest-free
   funds                 .42%      .25%               .40%      .25%
  Net interest
   margin               3.78%     3.92%              3.81%     3.92%

  Net charge-offs to
   average total net
   loans (annualized)    .14%      .23%               .17%      .22%

  Net operating
   results(3)

  Net operating
   income           $205,415   196,158       5%  $404,550   368,581    10%
  Diluted net
   operating
   earnings per
   common share         1.76      1.63       8       3.46      3.03    14

  Return on (annualized):
   Average tangible
    assets              1.62%     1.64%              1.61%     1.56%
   Average tangible
    common equity      29.88%    30.12%             29.77%    27.95%
  Efficiency ratio     52.56%    50.39%             52.10%    53.55%


                                 At June 30
                               --------------
  Loan quality                 2005      2004    Change
                               ----      ----    ------

  Nonaccrual loans         $173,403   181,974      -5%
  Renegotiated loans         10,649     8,163      30
                            -------   -------
   Total nonperforming
    loans                  $184,052   190,137      -3%
                            =======   =======

  Accruing loans past
   due 90 days or more     $123,301   134,757      -9%

  Nonperforming loans to
   total net loans              .46%      .51%
  Allowance for credit
   losses to total net loans   1.60%     1.66%

  (1) Includes common stock equivalents.
  (2) Includes common stock issuable under deferred compensation plans.
  (3) Excludes amortization and balances related to goodwill and core
      deposit and other intangible assets and merger-related expenses 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 thousands

                      Three months ended          Six months ended
                           June 30                    June 30
                         -------------            ---------------
                         2005     2004   Change    2005       2004   Change
                         ----     ----   ------    ----       ----   ------


  Interest income      $676,518  560,601   21%  $1,314,839  1,106,733   19%
  Interest expense      229,016  126,805   81      425,282    253,634   68
                       -------- --------         ---------  ---------
  Net interest income   447,502  433,796    3      889,557    853,099    4

  Provision for credit
   losses                19,000   30,000  -37       43,000     50,000  -14
                       -------- --------         ---------  ---------
  Net interest income
   after provision
   for credit losses    428,502  403,796    6      846,557    803,099    5

  Other income
   Mortgage banking
    revenues             31,274   30,134    4       64,700     58,392   11
   Service charges on
    deposit accounts     92,969   91,104    2      181,322    179,429    1
   Trust income          32,745   34,576   -5       66,268     68,162   -3
   Brokerage services
    income               14,179   13,245    7       28,360     27,098    5
   Trading account and
    foreign exchange
    gains                 5,957    3,844   55       10,826      8,967   21
   Gain on sales of bank
    investment securities    30        -    -          246      2,512    -
   Other revenues from
    operations           68,208   59,431   15      127,898    115,925   10
                       -------- --------         ---------  ---------
    Total other income  245,362  232,334    6      479,620    460,485    4

  Other expense
   Salaries and
    employee benefits   204,607  202,647    1      411,217    403,397    2
   Equipment and net
    occupancy            42,608   44,811   -5       86,614     92,183   -6
   Printing, postage
    and supplies          8,411    8,494   -1       17,242     18,386   -6
   Amortization of core
    deposit and other
    intangible assets    14,055   19,250  -27       30,176     40,398  -25
   Other costs of
    operations          110,760   82,005   35      202,529    192,810    5
                       -------- --------         ---------  ---------
    Total other
     expense            380,441  357,207    7      747,778    747,174    -

  Income before income
   taxes                293,423  278,923    5      578,399    516,410   12
  Applicable income
   taxes                 96,589   94,538    2      192,275    172,535   11
                       -------- --------         ---------  ---------
  Net income           $196,834  184,385    7%    $386,124    343,875   12%
                       ======== ========         =========  =========


  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet

                                                  June 30
                                          -----------------------
  Dollars in thousands                       2005         2004     Change
                                          ----------   ----------  ------
  ASSETS

  Cash and due from banks                 $1,473,675    1,697,173    -13%

  Money-market assets                        209,081      167,817     25

  Investment securities                    8,319,967    8,161,040      2

  Loans and leases, net of unearned
   discount                               39,910,964   37,522,401      6
    Less: allowance for credit losses        637,345      624,516      2
                                          ----------   ----------

    Net loans and leases                  39,273,619   36,897,885      6

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

  Core deposit and other intangible
   assets                                    135,331      200,433    -32

  Other assets                             2,166,192    2,066,029      5
                                          ----------   ----------

    Total assets                         $54,481,946   52,094,458      5%
                                          ==========   ==========

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at U.S.
   offices                                $8,681,655    8,204,704      6%

  Other deposits at U.S. offices          24,442,455   23,030,317      6

  Deposits at foreign office               4,181,722    3,718,490     12
                                          ----------   ----------

    Total deposits                        37,305,832   34,953,511      7

  Short-term borrowings                    4,284,930    4,862,362    -12

  Accrued interest and other
   liabilities                               735,500      794,719     -7

  Long-term borrowings                     6,317,961    5,827,180      8
                                           ----------   ----------
    Total liabilities                     48,644,223   46,437,772      5

  Stockholders' equity(1)                  5,837,723    5,656,686      3
                                          ----------   ----------

    Total liabilities and stockholders'
     equity                              $54,481,946   52,094,458      5%
                                          ==========   ==========

  (1)  Reflects accumulated other comprehensive loss, net of applicable
       income tax effect, of $37.8 million at June 30, 2005 and $15.7
       million at June 30, 2004.


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

  Dollars in millions

                                     Three months ended
                                          June 30
                            --------------------------------
                                  2005              2004
                            --------------    --------------     Change in
                            Balance   Rate    Balance   Rate      balance
                            -------   ----    -------   ----     ---------

  ASSETS

  Money-market assets       $   109   1.99%        76    .74%       43%

  Investment securities       8,593   4.41      7,943   4.16         8

  Loans and leases, net of
   unearned discount
   Commercial, financial,
    etc                      10,484   5.44      9,464   4.30        11

   Real estate -
    commercial               14,399   6.37     12,962   5.60        11

   Real estate -
    consumer                  3,493   6.00      3,218   5.89         9

   Consumer                  10,853   5.99     11,260   5.46        -4
                             ------            ------
    Total loans and
     leases, net             39,229   5.99     36,904   5.26         6
                             ------            ------
   Total earning assets      47,931   5.70     44,923   5.06         7

  Goodwill                    2,904             2,904                -

  Core deposit and other
   intangible assets            142               210              -32

  Other assets                2,958             3,214               -8
                             ------            ------
   Total assets             $53,935            51,251                5%
                             ======            ======


  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing deposits
   NOW accounts             $   401    .54        368    .30         9%
   Savings deposits          15,163    .88     15,667    .57        -3
   Time deposits              8,609   2.99      6,842   2.13        26
   Deposits at foreign
    office                    3,850   2.93      2,829    .99        36
                             ------            ------
    Total interest-bearing
     deposits                28,023   1.80     25,706   1.03         9
                             ------            ------

  Short-term borrowings       4,969   2.96      5,141   1.02        -3
  Long-term borrowings        6,263   4.25      5,869   3.30         7
                             ------            ------

  Total interest-bearing
   liabilities               39,255   2.34     36,716   1.39         7

  Noninterest-bearing
   deposits                   8,222             7,996                3

  Other liabilities             709               885              -20
                             ------            ------
   Total liabilities         48,186            45,597                6
  Stockholders' equity        5,749             5,654                2
                             ------            ------

   Total liabilities and
    stockholders' equity    $53,935            51,251                5%
                             ======            ======

  Net interest spread                 3.36              3.67
  Contribution of
   interest-free funds                 .42               .25
  Net interest margin                 3.78%             3.92%


                                    Six months ended
                                        June 30
                            --------------------------------
                                  2005              2004
                            --------------    --------------     Change in
                            Balance   Rate    Balance   Rate      balance
                            -------   ----    -------   ----     ---------

  ASSETS
  Money-market assets       $    98   1.72%        81    .87%       22%
  Investment securities       8,583   4.36      7,729   4.13        11

  Loans and leases, net of
   unearned discount
   Commercial, financial,
   etc                       10,290    5.28      9,282   4.19       11
   Real estate -
    commercial               14,296    6.23     12,742   5.65       12
   Real estate -
    consumer                  3,370    5.99      3,151   5.92        7
   Consumer                  10,950    5.91     11,199   5.56       -2
                             ------             ------
    Total loans and
     leases, net             38,906    5.89     36,374   5.29        7
                             ------             ------
   Total earning assets      47,587    5.61     44,184   5.08        8
  Goodwill                    2,904              2,904               -

  Core deposit and other
   intangible assets            150                220             -32

  Other assets                2,981              3,275              -9
                             ------             ------
   Total assets             $53,622             50,583               6%
                             ======             ======

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Interest-bearing deposits
   NOW accounts             $   389     .45        741    .35      -48%
   Savings deposits          15,123     .82     15,211    .59       -1
   Time deposits              8,017    2.84      6,717   2.17       19
   Deposits at foreign
    office                    4,025    2.68      2,831    .98       42
                             ------             ------
    Total interest-bearing
     deposits                27,554    1.67     25,500   1.05        8
                             ------             ------
  Short-term borrowings       5,081    2.73      4,956   1.02        3
  Long-term borrowings        6,333    4.08      5,717   3.37       11
                             ------             ------
  Total interest-bearing
   liabilities               38,968    2.20     36,173   1.41        8
  Noninterest-bearing
   deposits                   8,212              7,780               6
  Other liabilities             706                937             -25
                             ------             ------
   Total liabilities         47,886             44,890               7
  Stockholders' equity        5,736              5,693               1
                             ------             ------
   Total liabilities and
    stockholders' equity    $53,622             50,583               6%
                             ======             ======
  Net interest spread                  3.41              3.67
  Contribution of
   interest-free funds                  .40               .25
  Net interest margin                  3.81%             3.92%


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Investor Contact:

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