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 First Quarter Results
PRNewswire-FirstCall
BUFFALO, N.Y.

M&T Bank Corporation ("M&T") today reported its results of operations for the quarter ended March 31, 2006.

GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2006 were $1.77, 9% higher than $1.62 in the corresponding period of 2005. GAAP-basis net income in the recent quarter totaled $203 million, up 7% from $189 million in the year-earlier period. GAAP-basis net income for 2006's initial quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.49% and 13.97%, respectively, each improved from 1.44% and 13.41%, respectively, in the first quarter of 2005.

Commenting on M&T's first quarter financial results, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "M&T posted solid results in the first reporting period of 2006, led by excellent credit quality, 8% growth in fee income and continued success at containing expense growth. We were also encouraged by the 9% annualized rate of growth in our commercial loan and commercial mortgage loan portfolios. This drove annualized growth in total loans, excluding those held for purposes of sale, to 6% relative to the fourth quarter of 2005, while the net interest margin of 3.73% was consistent with our internal expectations."

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 $8 million ($.07 per diluted share) in the recently completed quarter, compared with $10 million ($.08 per diluted share) in the first quarter of 2005. There were no merger-related expenses in either of the first quarters of 2006 or 2005.

Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets, were $1.84 for the initial quarter of 2006, 8% above $1.70 in the year-earlier quarter. Net operating income for the quarter ended March 31, 2006 was $211 million, up 6% from $199 million in the corresponding quarter of 2005. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders' equity, net operating income was 1.64% and 29.31%, respectively, in the first quarter of 2006, compared with 1.61% and 29.67% in 2005's initial quarter.

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
                                            March 31
                                       2006          2005
                                     --------      --------
                                (in thousands, except per share)

  Diluted earnings per share         $   1.77          1.62
  Amortization of core deposit
   and other intangible assets(1)         .07           .08
                                     --------       -------
  Diluted net operating earnings
   per share                         $   1.84          1.70
                                     ========       =======

  Net income                         $202,917       189,290
  Amortization of core deposit
   and other intangible assets(1)       7,939         9,845
                                     --------       -------
  Net operating income               $210,856       199,135
                                     ========       =======

  (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
                                            March 31
                                       2006          2005
                                     --------      --------
                                         (in millions)

  Average assets                      $55,106        53,306
  Goodwill                             (2,907)       (2,904)
  Core deposit and other
   intangible assets                     (112)         (157)
  Deferred taxes                           43            60
                                       ------        ------
  Average tangible assets             $52,130        50,305
                                       ======        ======

  Average equity                      $ 5,893         5,723
  Goodwill                             (2,907)       (2,904)
  Core deposit and other
   intangible assets                     (112)         (157)
  Deferred taxes                           43            60
                                       ------        ------
  Average tangible equity             $ 2,917         2,722
                                       ======        ======


Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $452 million in the first quarter of 2006, compared with $446 million in the corresponding 2005 quarter. Higher average loan balances outstanding, which rose 5% to $40.5 billion in 2006's initial quarter from $38.6 billion in the corresponding 2005 period, were the most significant contributor to the increase. Partially offsetting the favorable impact of loan growth was a lower net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, which declined to 3.73% in the recent quarter from 3.83% in the first quarter of 2005. The decline in net interest margin from 2005's first quarter reflects the continuing impact of rising short-term interest rates, which resulted in a narrowing of M&T's net interest margin as the rates paid on interest-bearing liabilities rose more rapidly than the yields on many earning assets. The recent quarter's net interest margin was improved from 3.69% in the fourth quarter of 2005.

Provision for Credit Losses/Asset Quality. The provision for credit losses totaled $18 million in the recent quarter, down from $24 million in the initial quarter of 2005. Net charge-offs of loans during the first quarter of 2006 were $17 million, compared with $19 million in the year-earlier period. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .17% and .20% in the first quarter of 2006 and 2005, respectively. Loans classified as nonperforming totaled $143 million, or .35% of total loans at March 31, 2006, improved from $180 million or .46% a year earlier and $156 million or .39% at December 31, 2005. Loans past due 90 days or more and accruing interest were $109 million at the end of the recently completed quarter, compared with $125 million at March 31, 2005. Included in these past due but accruing amounts were loans guaranteed by government- related entities of $86 million and $102 million at March 31, 2006 and 2005, respectively. Assets taken in foreclosure of defaulted loans were $10 million at March 31, 2006, compared with $11 million a year earlier.

Allowance for Credit Losses. The allowance for credit losses totaled $639 million, or 1.56% of total loans, at March 31, 2006, compared with $632 million, or 1.62%, a year earlier. The decline in the allowance as a percentage of loans reflects improvement in various credit factors, including the decrease in nonperforming loans already noted. At December 31, 2005, the allowance for credit losses totaled $638 million, representing 1.58% of total loans. The ratio of M&T's allowance for credit losses to nonperforming loans was 448%, 351% and 408% at March 31, 2006, March 31, 2005 and December 31, 2005, respectively.

Noninterest Income and Expense. Noninterest income in the initial quarter of 2006 totaled $253 million, up 8% from $234 million in the year-earlier quarter. The improvement was led by higher income from commercial leasing and educational lending, but also included growth in several other sources of fee income.

Noninterest expense in the first quarter of 2006 totaled $382 million, compared with $367 million in the similar quarter of 2005. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $13 million in 2006 and $16 million in 2005. Exclusive of these nonoperating expenses, noninterest operating expenses were $369 million in the recently completed quarter and $351 million in the first quarter of 2005. Contributing to the rise in operating expenses in 2006 were higher salaries expenses, including stock-based compensation costs. Effective January 1, 2006, M&T adopted Statement of Financial Accounting Standards ("SFAS") No. 123 (revised 2004), "Share-Based Payment,"("SFAS No. 123R"). As required by SFAS No. 123R, in 2006 the Company began accelerating the recognition of compensation costs for stock-based awards granted to retirement-eligible employees and employees who will become retirement-eligible prior to full vesting of the award since those awards vest when an employee retires. As a result, stock-based compensation expense during the first quarter of 2006 included $6 million that would have been recognized over the normal four year vesting period if not for the required adoption of SFAS No. 123R. That acceleration has no effect on the value of stock-based compensation awarded to employees. If the impact of the adoption of SFAS No. 123R was excluded from the recent quarter's expenses, noninterest operating expenses increased 3% from the year-earlier period.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 52.4% in the first quarter of 2006, compared with 51.6% in the year-earlier period. If not for the acceleration of expense recognition resulting from the adoption of SFAS No. 123R, M&T's efficiency ratio in the recent quarter would have been 51.5%.

Balance Sheet. M&T had total assets of $55.4 billion at March 31, 2006, compared with $53.9 billion a year earlier. Loans and leases, net of unearned discount, increased 5% to $40.9 billion at the recent quarter-end from $39.1 billion at March 31, 2005. Deposits were $38.2 billion at March 31, 2006, up from $36.3 billion a year earlier. Total stockholders' equity was $5.9 billion and $5.7 billion at March 31, 2006 and 2005, respectively, representing 10.68% of total assets at the recent quarter-end and 10.53% a year earlier. Common stockholders' equity per share was $53.11 and $49.78 at March 31, 2006 and 2005, respectively. Tangible equity per common share was $26.41 at March 31, 2006, compared with $23.49 a year earlier. 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 March 31, 2006 and 2005.

In November 2005, 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, 1,269,000 shares of common stock were repurchased by M&T pursuant to such plan at an average cost per share of $108.51. Through March 31, 2006, M&T had repurchased a total of 1,313,700 shares of common stock pursuant to such plan at an average cost of $108.57 per share.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 3:00 p.m. Eastern Time. Those wishing to participate in the call may dial 877-780-2276. International participants, using any applicable international calling codes, may dial 973-582-2700. 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, April 19, 2006 by calling 877-519-4471, code 7239714 and 973-341-3080 for international participants. The event will also be archived and available by 7:00 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 monetary policy and required capital levels; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; increasing price and product/service competition by competitors, 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 M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

  M&T BANK CORPORATION
  Financial Highlights

  Amounts in thousands, except per share

                                      Three months ended
                                           March 31
                                       2006         2005         Change
                                    ---------    ---------      -------

   Performance

   Net income                       $ 202,917      189,290          7%

   Per common share:
     Basic earnings                 $    1.82         1.65         10%
     Diluted earnings                    1.77         1.62          9
     Cash dividends                 $     .45          .40         13

   Common shares outstanding:
     Average - diluted (1)            114,347      117,184         -2%
     Period end (2)                   111,447      113,978         -2

   Return on (annualized):
     Average total assets                1.49%        1.44%
     Average common stockholders'
      equity                            13.97%       13.41%

   Taxable-equivalent net interest
    income                          $ 451,757      446,175          1%

   Yield on average earning assets       6.46%        5.52%
   Cost of interest-bearing
    liabilities                          3.28%        2.06%
   Net interest spread                   3.18%        3.46%
   Contribution of interest-free
    funds                                 .55%         .37%
   Net interest margin                   3.73%        3.83%

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

   Net operating results (3)

   Net operating income             $ 210,856      199,135          6%
   Diluted net operating earnings
    per common share                     1.84         1.70          8
   Return on (annualized):
     Average tangible assets             1.64%        1.61%
     Average tangible common equity     29.31%       29.67%
   Efficiency ratio                     52.36%       51.63%


                                          At March 31
   Loan quality                         2006         2005        Change
                                      -------      -------      -------

   Nonaccrual loans                  $127,934      169,648        -25%
   Renegotiated loans                  14,790       10,501         41
                                      -------      -------
     Total nonperforming loans       $142,724      180,149        -21%
                                      =======      =======
   Accruing loans past due 90
    days or more                     $109,287      124,550        -12%

   Nonperforming loans to total
    net loans                             .35%         .46%

   Allowance for credit losses
    to total net loans                   1.56%        1.62%


  (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

                                            Three months ended
                                                 March 31
  Dollars in thousands                       2006        2005      Change
                                           --------    --------    -------

  Interest income                          $777,272     638,321       22 %
  Interest expense                          330,246     196,266       68
                                            -------     -------

  Net interest income                       447,026     442,055        1

  Provision for credit losses                18,000      24,000      -25
                                            -------     -------
  Net interest income after
   provision for credit losses              429,026     418,055        3

  Other income
    Mortgage banking revenues                34,511      33,426        3
    Service charges on deposit
     accounts                                88,876      88,353        1
    Trust income                             33,796      33,523        1
    Brokerage services income                14,724      14,181        4
    Trading account and foreign
     exchange gains                           6,506       4,869       34
    Gain on bank investment
     securities                                  58         216        -
    Other revenues from operations           74,460      59,690       25
                                            -------     -------
         Total other income                 252,931     234,258        8

  Other expense
    Salaries and employee benefits          224,082     206,610        8
    Equipment and net occupancy              43,402      44,006       -1
    Printing, postage and supplies            8,567       8,831       -3
    Amortization of core deposit and
     other intangible assets                 13,028      16,121      -19
    Other costs of operations                92,924      91,769        1
                                            -------     -------
         Total other expense                382,003     367,337        4

  Income before income taxes                299,954     284,976        5

  Applicable income taxes                    97,037      95,686        1
                                            -------     -------

  Net income                               $202,917     189,290        7 %
                                            =======     =======



  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet

  Dollars in thousands

                                                March 31
                                            2006        2005        Change
                                         ----------   --------      ------

  ASSETS

  Cash and due from banks               $ 1,277,809   1,348,725       -5 %

  Money-market assets                       224,209     184,361       22

  Investment securities                   8,294,067   8,678,890       -4

  Loans and leases, net of unearned
   discount                              40,858,598  39,073,343        5
   Less: allowance for credit losses        638,831     631,993        1
                                         ----------  ----------

   Net loans and leases                  40,219,767  38,441,350        5

  Goodwill                                2,908,849   2,904,081        -

  Core deposit and other intangible
   assets                                   110,614     149,386      -26

  Other assets                            2,384,547   2,180,425        9
                                         ----------  ----------

    Total assets                        $55,419,862  53,887,218        3 %
                                         ==========  ==========


  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at U.S.
   offices                              $ 7,697,855   8,392,193       -8 %

  Other deposits at U.S. offices         27,306,015  23,682,298       15

  Deposits at foreign office              3,167,515   4,218,916      -25
                                         ----------  ----------

    Total deposits                       38,171,385  36,293,407        5

  Short-term borrowings                   4,351,347   4,881,596      -11

  Accrued interest and other
   liabilities                              885,091     756,224       17

  Long-term borrowings                    6,092,570   6,282,386       -3
                                         ----------  ----------

    Total liabilities                    49,500,393  48,213,613        3

  Stockholders' equity (1)                5,919,469   5,673,605        4
                                         ----------  ----------

   Total liabilities and stockholders'
    equity                              $55,419,862  53,887,218        3 %
                                         =========   ==========


  (1) Reflects accumulated other comprehensive loss, net of applicable
      income tax effect, of $122.9 million at March 31, 2006 and $61.5
      million at March 31, 2005.



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

                                       Three months ended
                                             March 31
  Dollars in millions                 2006             2005
                                 --------------   --------------  Change in
                                 Balance   Rate   Balance   Rate   balance
                                 -------  -----   -------   ----   -------
  ASSETS

  Money-market assets            $   139   3.28%       87   1.38%     59%

  Investment securities            8,383   4.71     8,573   4.31      -2

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc.   11,034   6.65    10,094   5.11       9
    Real estate - commercial      14,678   7.09    14,193   6.10       3
    Real estate - consumer         4,601   6.18     3,246   5.97      42
    Consumer                      10,231   6.79    11,047   5.83      -7
                                  ------           ------
      Total loans and leases,
       net                        40,544   6.84    38,580   5.79       5
                                  ------           ------

      Total earning assets        49,066   6.46    47,240   5.52       4

  Goodwill                         2,907            2,904              -

  Core deposit and other
   intangible assets                 112              157            -29

  Other assets                     3,021            3,005              1
                                  ------           ------

      Total assets               $55,106           53,306              3%
                                  ======           ======



  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Interest-bearing deposits
   NOW accounts                  $   409    .65       376    .34       9%
   Savings deposits               14,335   1.23    15,082    .75      -5
   Time deposits                  11,870   4.03     7,419   2.67      60
   Deposits at foreign office      3,383   4.41     4,203   2.45     -20
                                  ------           ------
     Total interest-bearing
      deposits                    29,997   2.69    27,080   1.53      11
                                  ------           ------

  Short-term borrowings            4,555   4.50     5,194   2.50     -12
  Long-term borrowings             6,293   5.19     6,403   3.92      -2
                                  ------           ------

  Total interest-bearing
   liabilities                    40,845   3.28    38,677   2.06       6

  Noninterest-bearing deposits     7,572            8,202             -8

  Other liabilities                  796              704             13
                                  ------           ------

    Total liabilities             49,213           47,583              3

  Stockholders' equity             5,893            5,723              3
                                  ------           ------

    Total liabilities and
     stockholders' equity        $55,106           53,306              3%
                                  ======           ======

  Net interest spread                      3.18            3.46
  Contribution of interest-free
     funds                                  .55             .37
  Net interest margin                      3.73%           3.83%



Media Contact: 

C. Michael Zabel 

(716) 842-5385

Investor Contact:

Donald J. MacLeod

(716) 842-5138