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

M&T Bank Corporation ("M&T") today reported its results of operations for the quarter ended September 30, 2009.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2009 were $.97. On the same basis, net income in the recent quarter totaled $128 million. GAAP-basis net income for 2009's third quarter expressed as an annualized rate of return on average assets and average common stockholders' equity was .73% and 6.72%, respectively.

Several noteworthy items are reflected in M&T's results for the recently completed quarter. As previously announced, on August 28, 2009 M&T's principal bank subsidiary, M&T Bank, entered into an agreement with the Federal Deposit Insurance Corporation ("FDIC") to assume all of the deposits and acquire certain assets of Bradford Bank ("Bradford"), Baltimore, Maryland, under which the FDIC will reimburse M&T Bank for most loan losses. Assets acquired in the transaction totaled approximately $469 million, including $302 million of loans, and liabilities assumed aggregated $440 million, including $361 million of deposits. In accordance with GAAP, M&T Bank recorded an after-tax gain on the transaction of $18 million during the recent quarter. Merger-related expenses associated with this transaction and with M&T's second quarter acquisition of Provident Bankshares Corporation ("Provident") totaled $9 million, after applicable tax effect, in the recent quarter. Also reflected in M&T's third quarter 2009 results were $29 million of after-tax other-than-temporary impairment charges on certain available-for-sale investment securities. However, because those investment securities were previously reflected at fair value on the consolidated balance sheet, the impairment charges did not reduce stockholders' equity. Finally, M&T's results benefited from a $10 million reversal of taxes previously accrued for uncertain tax positions in various jurisdictions. The overall impact of the items described herein was to reduce M&T's third quarter 2009 GAAP net income by approximately $9 million, or $.08 of diluted earnings per common share.

Commenting on the recent quarter, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "M&T posted solid results. Our approach of providing basic banking services to customers we know in the communities where we live and work continues to prove quite successful. Credit costs remain below current industry experience and our net interest margin improved by 18 basis points during the quarter. As a result, diluted net operating earnings per common share rose 24% from this year's second quarter to $.98 and were up 8% from last year's third quarter. We are pleased to report that our 2009 acquisitions in the Mid-Atlantic region added $.08 of diluted net operating earnings per common share to the recent quarter's results. Also notable was the 40 basis point rise in our tangible common equity ratio, to 4.89% at the recent quarter-end from 4.49% at June 30, 2009."

Diluted earnings per common share were $.82 and $.36 in the third quarter of 2008 and the second quarter of 2009, respectively. Net income for those respective quarters was $91 million and $51 million. Net income expressed as an annualized rate of return on average assets and average common stockholders' equity for the third quarter of 2008 was .56% and 5.66%, respectively, compared with .31% and 2.53%, respectively, in the second quarter of 2009.

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides 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 acquisition-related income (specifically, the recent quarter's gain on the Bradford transaction) and expenses associated with merging acquired operations into M&T, since such amounts 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. Reconciliations of GAAP to non-GAAP measures are provided herein.

Diluted net operating earnings per common share were $.98 in the third quarter of 2009, up from $.91 in the third quarter of 2008 and $.79 in the second quarter of 2009. Net operating income during the recent quarter was $129 million, up from $101 million in each of the third quarter of 2008 and the second quarter of 2009. Expressed as an annualized rate of return on average tangible assets and average tangible common stockholders' equity, net operating income was .78% and 14.87%, respectively, in the recent quarter, compared with .65% and 13.17% in the year-earlier quarter and .64% and 12.08% in the second quarter of 2009.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $553 million in the third quarter of 2009, 12% higher than $493 million in the year-earlier period and up 9% from $507 million in the second quarter of 2009. The growth in such income from the second 2009 quarter reflects a widening of the net interest margin which rose to 3.61% from 3.43%. That improvement resulted from lower interest rates paid on deposits and long-term borrowings. Also contributing to the higher net interest income in the recent quarter as compared with the second quarter of 2009 was the full quarter's impact of the earning assets obtained in the Provident transaction, compared with approximately one-half of such impact in 2009's second quarter.

Provision for Credit Losses/Asset Quality. The provision for credit losses increased to $154 million in the third quarter of 2009 from $101 million in the year-earlier period. Net charge-offs of loans totaled $141 million during the recent quarter, compared with $94 million in 2008's third quarter. The rise in net charge-offs in the recent quarter as compared with the year-earlier period was largely attributable to a partial charge-off of a commercial relationship that had been transferred to nonaccrual status during the second quarter of 2009. During the second quarter of 2009, the provision for credit losses was $147 million, while net charge-offs totaled $138 million. Expressed as an annualized percentage of average loans outstanding, net charge-offs were 1.07%, and .77% in the third quarter of 2009 and 2008, respectively, 1.09% in the second quarter of 2009 and 1.00% for the first nine months of 2009.

Reflecting the difficult economic environment faced by businesses and individuals, loans classified as nonaccrual rose to $1.23 billion, or 2.35% of total loans at September 30, 2009 from $688 million or 1.41% a year earlier and $1.11 billion or 2.11% at June 30, 2009. Assets taken in foreclosure of defaulted loans were $85 million at September 30, 2009, unchanged from a year earlier but down from $90 million at June 30, 2009.

In an effort to assist borrowers, M&T has modified the terms of select residential real estate loans, consisting largely of loans in M&T's portfolio of Alt-A loans. At September 30, 2009, outstanding balances of those modified loans totaled $276 million, of which $109 million were classified as nonaccrual. The remaining modified loans have demonstrated payment capability consistent with the modified terms and, accordingly, were classified as renegotiated loans and were accruing interest at September 30, 2009.

Loans past due 90 days or more and accruing interest were $183 million at the end of the recent quarter, compared with $96 million a year earlier. Included in these past due but accruing amounts were loans guaranteed by government-related entities of $173 million and $90 million at September 30, 2009 and 2008, respectively.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. Reflecting those analyses, the allowance for credit losses was $868 million at September 30, 2009, compared with $781 million at September 30, 2008 and $855 million at June 30, 2009. Beginning in 2009, GAAP requires that expected credit losses associated with loans obtained in an acquisition be reflected in the estimation of loan fair value as of each respective acquisition date and prohibits any carryover of an allowance for credit losses. Excluding loans obtained in the Provident and Bradford acquisitions, the allowance-to-legacy loan ratio increased to 1.81% at September 30, 2009 from 1.76% at June 30, 2009. That same ratio was 1.60% and 1.61% at September 30, 2008 and December 31, 2008, respectively.

Noninterest Income and Expense. Excluding gains and losses from investment securities and the recent quarter's gain on the Bradford transaction, noninterest income in each of the third and second quarters of 2009 aggregated $296 million, compared with $266 million in the third quarter of 2008. The higher level of noninterest income in the recent quarter as compared with the year-earlier quarter resulted largely from higher mortgage banking revenues, service charges on acquisition-related deposit accounts and credit-related fees. As compared with 2009's second quarter, higher service charges on deposit accounts in the recent quarter were largely offset by declines in mortgage banking revenues and M&T's pro-rata portion of the operating results of Bayview Lending Group, LLC.

Noninterest expense in the third quarter of 2009 totaled $500 million, compared with $435 million in the year-earlier quarter and $564 million in the second quarter of 2009. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of these expenses, noninterest operating expenses were $469 million in the recent quarter, compared with $419 million in the third quarter of 2008 and $482 million in 2009's second quarter. As compared with the third quarter of 2008, the recent quarter's rise in operating expenses was due, in large part, to the operations obtained in the 2009 acquisitions and higher deposit insurance assessments. The decline in noninterest operating expenses from the second to the third quarter of 2009 was due to the $33 million special deposit insurance assessment levied by the FDIC in 2009's second quarter, partially offset by higher operating expenses resulting from the 2009 acquisition transactions.

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 and gains on merger transactions), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 55.2% in each of the third quarters of 2009 and 2008, and 60.0% in the second quarter of 2009. If the second quarter 2009 special assessment by the FDIC was excluded from the computation, the efficiency ratio for that quarter would have been 56.0%.

Balance Sheet. M&T had total assets of $69.0 billion at September 30, 2009, up from $65.2 billion at September 30, 2008. Loans and leases, net of unearned discount, were $52.2 billion at September 30, 2009, up 7% from $48.7 billion a year earlier. Total deposits aggregated $46.9 billion at the recent quarter-end, compared with $42.5 billion at September 30, 2008. Deposits at domestic offices rose $8.8 billion, or 24%, to $45.5 billion at the recent quarter-end from $36.7 billion at September 30, 2008. Moreover, exclusive of the impact of the 2009 acquisitions, core customer deposits increased 18% to $38.4 billion at September 30, 2009 from $32.6 billion a year earlier. Fueling that growth were noninterest-bearing deposits, which jumped 42% to $11.8 billion at the recently ended quarter from $8.3 billion at September 30, 2008, also excluding the impact of acquisitions.

Total stockholders' equity was $7.6 billion and $6.4 billion at September 30, 2009 and 2008, representing 11.03% and 9.83%, respectively, of total assets. Common stockholders' equity was $6.9 billion, or $58.22 per share, at September 30, 2009, compared with $6.4 billion, or $58.17 per share, at September 30, 2008. Tangible equity per common share was $27.03 at September 30, 2009, compared with $27.67 at September 30, 2008. 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 $3.7 billion and $3.4 billion at September 30, 2009 and 2008, respectively. M&T's tangible common equity to tangible assets ratio was 4.89% at September 30, 2009, compared with 4.93% and 4.49% at September 30, 2008 and June 30, 2009, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 2:30 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. Callers should reference M&T Bank Corporation or the conference ID #33686532. 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 Thursday, October 22, 2009 by calling 800-642-1687, or 706-645-9291 for international participants, and by making reference to ID #33686532. 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.

M&T is a bank holding company whose banking subsidiaries, M&T Bank and M&T Bank, National Association, operate branch offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia.

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, credit losses and market values on loans, collateral securing loans, and other assets; 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, including tax legislation; 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, including tax-related examinations and other matters; 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, acquisition and investment 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.

  INVESTOR CONTACT:  Donald J. MacLeod
                     (716) 842-5138

  MEDIA CONTACT:     C. Michael Zabel
                     (716) 842-5385




  M&T BANK CORPORATION
  Financial Highlights

                      Three months                 Nine months
  Amounts in             ended                        ended
   thousands,         September 30                 September 30
   except per      -----------------            -------------------
   share             2009      2008   Change      2009       2008    Change
                   --------   ------  ------    --------   --------  ------
  Performance
  -----------

  Net income       $127,664   91,185      40% $  243,073    453,646     -46%
  Net income
   available to
   common
   shareholders     113,894   91,185      25     209,062    453,646     -54

  Per common share:
    Basic
     earnings      $    .97      .83      17% $     1.84       4.12     -55%
    Diluted
     earnings           .97      .82      18        1.84       4.09     -55
    Cash
     dividends     $    .70      .70       -  $     2.10       2.10       -

  Common shares
   outstanding:
    Average -
     diluted (1)    117,547  110,807       6%    113,800    111,000       3%
    Period end (2)  118,156  110,313       7     118,156    110,313       7

  Return on
   (annualized):
    Average total
     assets             .73%     .56%                .49%       .93%
    Average common
     stockholders'
     equity            6.72%    5.66%               4.35%      9.37%

  Taxable-
   equivalent net
   interest
   income          $553,450  493,499      12% $1,512,971  1,470,615       3%

  Yield on average
   earning assets      4.60%    5.54%               4.62%      5.80%
  Cost of
   interest-
   bearing
   liabilities         1.26%    2.50%               1.49%      2.80%
  Net interest
   spread              3.34%    3.04%               3.13%      3.00%
  Contribution of
   interest-free
   funds                .27%     .35%                .28%       .38%
  Net interest
   margin              3.61%    3.39%               3.41%      3.38%

  Net charge-offs to
   average total
   net loans
   (annualized)        1.07%     .77%               1.00%       .65%

  Net operating
   results (3)
  -------------

  Net operating
   income          $128,761  100,809      28% $  304,600    486,767     -37%
  Diluted net
   operating
   earnings per
   common share         .98      .91       8        2.37       4.39     -46
  Return on
   (annualized):
    Average
     tangible
     assets             .78%     .65%                .64%      1.05%
    Average
     tangible
     common
     equity           14.87%   13.17%              12.19%     21.10%
  Efficiency
   ratio              55.21%   55.16%              57.90%     53.47%



                                                  At September 30
                                               --------------------
  Loan quality                                    2009       2008    Change
  ------------                                 ----------   -------  ------

  Nonaccrual loans                            $1,228,341    688,214      78%
  Real estate and other foreclosed assets         84,676     85,305      -1%
                                              ----------    -------
    Total nonperforming assets                $1,313,017    773,519      70%
                                              ==========    =======

  Accruing loans past due 90 days or more     $  182,750     96,206      90%
  Renegotiated loans                             190,917     21,804       -

  Purchased impaired loans (4):
    Outstanding customer balance              $  209,138          -       -
    Carrying amount                              108,058          -       -

  Nonaccrual loans to total net loans               2.35%      1.41%

  Allowance for credit losses to:
    M&T legacy loans                                1.81%      1.60%
    Total loans                                     1.66%      1.60%


  --------------------------------------------
  (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 gains and
       expenses which, except in the calculation of the efficiency ratio,
       are net of applicable income tax effects.
  (4)  Accruing loans that were impaired at acquisition date and recorded
       at fair value.



  M&T BANK CORPORATION
  Condensed Consolidated Statement of Income

                     Three months                 Nine months
                        ended                        ended
                     September 30                 September 30
                  ------------------          ---------------------
  Dollars in
   thousands        2009       2008   Change     2009       2008     Change
                  --------   -------  ------  ----------  ---------  ------
  Interest income $700,593   801,354     -13% $2,032,528  2,503,090     -19%
  Interest expense 152,938   313,115     -51     535,499  1,049,369     -49
                   -------   -------          ----------  ---------

  Net interest
   income          547,655   488,239      12   1,497,029  1,453,721       3

  Provision for
   credit losses   154,000   101,000      52     459,000    261,000      76
                   -------   -------          ----------  ---------

  Net interest
   income after
   provision for
   credit losses   393,655   387,239       2   1,038,029  1,192,721     -13

  Other income
    Mortgage
     banking
     revenues       48,169    38,002      27     157,385    116,291      35
    Service
     charges on
     deposit
     accounts      128,502   110,371      16     342,010    324,165       6
    Trust income    31,586    38,789     -19      98,908    119,519     -17
    Brokerage
     services
     income         14,329    16,218     -12      43,215     48,902     -12
    Trading account
     and foreign
     exchange
     gains           7,478     4,278      75      16,456     15,627       5
    Gain (loss)
     on bank
     investment
     securities        (56)      306       -         811     34,078       -
    Total other-than-
     temporary
     impairment
     ("OTTI")
     losses        (64,232) (152,579)      -    (202,737)  (158,325)      -
    Portion of
     OTTI losses
     recognized
     in other
     comprehensive
     income (before
     taxes)         17,199         -       -      98,736          -       -
                   -------   -------          ----------  ---------
      Net OTTI
       losses
       recognized
       in earnings (47,033) (152,579)      -    (104,001)  (158,325)      -
     Equity in
      earnings
      of Bayview
      Lending
      Group LLC    (10,912)  (14,480)      -     (15,263)   (28,766)      -
     Other revenues
      from
      operations   106,163    72,812      46     242,695    226,071       7
                   -------   -------          ----------  ---------
         Total
          other
          income   278,226   113,717     145     782,216    697,562      12

  Other expense
    Salaries and
     employee
     benefits      255,449   236,678       8     754,793    724,676       4
    Equipment and
     net occupancy  58,195    47,033      24     157,688    141,050      12
    Printing,
     postage and
     supplies        8,229     8,443      -3      28,878     27,459       5
    Amortization
     of core
     deposit and
     other
     intangible
     assets         16,924    15,840       7      47,525     50,938      -7
    Deposit
     insurance      21,124     1,522       -      76,617      4,595       -
    Other costs of
     operations    140,135   125,247      12     436,611    331,459      32
                   -------   -------          ----------  ---------
         Total
          other
          expense  500,056   434,763      15   1,502,112  1,280,177      17

  Income before
   income taxes    171,825    66,193     160     318,133    610,106     -48

  Applicable
   income taxes
   (benefit)        44,161   (24,992)      -      75,060    156,460     -52
                  --------   -------          ----------  ---------

  Net income      $127,664    91,185      40% $  243,073    453,646     -46%
                  ========   =======          ==========  =========





  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet

                                                 September 30
                                           ----------------------
  Dollars in thousands                         2009       2008    Change
                                           ----------- ---------- ------

  ASSETS

  Cash and due from banks                  $ 1,356,508  1,368,917     -1%

  Interest-bearing deposits at banks            54,443     13,604    300

  Federal funds sold and agreements
    to resell securities                        17,206    108,600    -84

  Trading account assets                       497,064    370,420     34

  Investment securities                      7,634,262  8,433,441     -9

  Loans and leases, net of unearned
   discount                                 52,203,772 48,693,543      7
    Less: allowance for credit losses          867,874    780,683     11
                                           ----------- ----------

    Net loans and leases                    51,335,898 47,912,860      7

  Goodwill                                   3,524,625  3,192,128     10

  Core deposit and other intangible
   assets                                      199,148    198,554      -

  Other assets                               4,378,296  3,648,691     20
                                           ----------- ----------

    Total assets                           $68,997,450 65,247,215      6%
                                           =========== ==========


  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at U.S.
   offices                                 $12,730,083  8,332,060     53%

  Other deposits at U.S. offices            32,813,698 28,408,485     16

  Deposits at foreign office                 1,318,070  5,760,748    -77
                                           ----------- ----------

    Total deposits                          46,861,851 42,501,293     10

  Short-term borrowings                      2,927,268  2,929,242      -

  Accrued interest and other liabilities     1,241,576    918,029     35

  Long-term borrowings                      10,354,392 12,481,967    -17
                                           ----------- ----------

    Total liabilities                       61,385,087 58,830,531      4

  Stockholders' equity:

     Preferred                                 727,748          -      -
     Common (1)                              6,884,615  6,416,684      7
                                           ----------- ----------

       Total stockholders' equity            7,612,363  6,416,684     19
                                           ----------- ----------

    Total liabilities and stockholders'
     equity                                $68,997,450 65,247,215      6%
                                           =========== ==========


  -------------------------------------
   (1) Reflects accumulated other comprehensive loss, net of applicable
       income tax effect, of $419.3 million at September 30, 2009 and
       $462.1 million at September 30, 2008.





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

                                        Three months ended
                                            September 30
                                    -----------------------------
  Dollars in millions                    2009           2008
                                    -------------   -------------  Change in
                                    Balance  Rate   Balance  Rate   balance
                                    -------  ----   -------  ----  ---------
  ASSETS

  Interest-bearing deposits at
   banks                            $    66   .04%        9  1.09%      -%

  Federal funds sold and agreements
    to resell securities                 11   .58       102  2.01     -89

  Trading account assets                 83   .82        80  1.81       4

  Investment securities               8,420  4.81     9,303  5.01      -9

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc.      13,801  3.78    13,882  5.09      -1
    Real estate - commercial         20,843  4.48    18,557  5.62      12
    Real estate - consumer            5,429  5.43     4,964  6.01       9
    Consumer                         12,247  5.37    11,074  6.31      11
                                    -------         -------
       Total loans and leases, net   52,320  4.58    48,477  5.65       8
                                    -------         -------

    Total earning assets             60,900  4.60    57,971  5.54       5

  Goodwill                            3,525           3,192            10

  Core deposit and other
   intangible assets                    208             206             1

  Other assets                        4,521           3,628            25
                                    -------         -------

    Total assets                    $69,154          64,997             6%
                                    =======         =======



  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing deposits
    NOW accounts                    $   541   .21       484   .54      12%
    Savings deposits                 23,367   .37    18,191  1.29      28
    Time deposits                     9,246  2.17     9,318  3.08      -1
    Deposits at foreign office        1,444   .13     3,837  1.94     -62
                                    -------         -------
       Total interest-bearing
        deposits                     34,598   .84    31,830  1.88       9
                                    -------         -------

  Short-term borrowings               2,663   .26     5,392  2.08     -51
  Long-term borrowings               11,008  2.80    12,666  4.23     -13
                                     ------          ------

  Total interest-bearing
   liabilities                       48,269  1.26    49,888  2.50      -3

  Noninterest-bearing deposits       12,122           7,673            58

  Other liabilities                   1,242           1,021            22
                                    -------         -------

    Total liabilities                61,633          58,582             5

  Stockholders' equity                7,521           6,415            17
                                    -------         -------

    Total liabilities and
     stockholders' equity           $69,154          64,997             6%
                                    =======         =======


  Net interest spread                        3.34            3.04
  Contribution of interest-free
   funds                                      .27             .35
  Net interest margin                        3.61%           3.39%



                                          Nine months ended
                                            September 30
                                    -----------------------------
  Dollars in millions                    2009           2008
                                    -------------   -------------  Change in
                                    Balance  Rate   Balance  Rate   balance
                                    -------  ----   -------  ----  ---------
  ASSETS

  Interest-bearing deposits at
   banks                            $    43   .06%        9  1.32%    363%

  Federal funds sold and agreements
    to resell securities                 62   .25       110  2.38     -44

  Trading account assets                 92   .76        73  1.40      26

  Investment securities               8,472  4.84     9,000  5.10      -6

  Loans and leases, net of
   unearned discount
    Commercial, financial, etc.      13,965  3.76    13,664  5.42       2
    Real estate - commercial         19,793  4.45    18,348  5.91       8
    Real estate - consumer            5,243  5.47     5,653  6.08      -7
    Consumer                         11,578  5.47    11,192  6.54       3
                                    -------         -------
       Total loans and leases, net   50,579  4.60    48,857  5.94       4
                                    -------         -------

    Total earning assets             59,248  4.62    58,049  5.80       2

  Goodwill                            3,349           3,193             5

  Core deposit and other
   intangible assets                    191             222           -14

  Other assets                        4,196           3,734            12
                                    -------         -------

    Total assets                    $66,984          65,198             3%
                                    =======         =======



  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing deposits
    NOW accounts                    $   531   .22       493   .62       8%
    Savings deposits                 22,358   .54    17,710  1.40      26
    Time deposits                     8,943  2.49     9,649  3.57      -7
    Deposits at foreign office        1,788   .15     4,322  2.45     -59
                                    -------         -------
       Total interest-bearing
        deposits                     33,620  1.03    32,174  2.18       4
                                    -------         -------

  Short-term borrowings               3,114   .26     6,468  2.73     -52
  Long-term borrowings               11,376  3.17    11,452  4.57      -1
                                    -------         -------

  Total interest-bearing
   liabilities                       48,110  1.49    50,094  2.80      -4

  Noninterest-bearing deposits       10,416           7,562            38

  Other liabilities                   1,313           1,077            22
                                    -------         -------

    Total liabilities                59,839          58,733             2

  Stockholders' equity                7,145           6,465            11
                                    -------         -------

    Total liabilities and
     stockholders' equity           $66,984          65,198             3%
                                    =======        ========


  Net interest spread                        3.13            3.00
  Contribution of interest-free
   funds                                      .28             .38
  Net interest margin                        3.41%           3.38%





  M&T BANK CORPORATION
  Reconciliation of Quarterly GAAP to Non-GAAP Measures


                                 Three months ended      Nine months ended
                             --------------------------  -----------------
                                 September 30   June 30     September 30
                                2009     2008     2009     2009     2008
                             --------  -------  -------  -------   -------
  Income statement data
  ---------------------
  In thousands, except per
   share
  Net income
  Net income                 $127,664   91,185   51,188   243,073  453,646
  Amortization of core
   deposit and other
   intangible assets (1)       10,270    9,624    9,247    28,854   30,961
  Merger-related gain (1)     (17,684)       -        -   (17,684)       -
  Merger-related
   expenses (1)                 8,511        -   40,370    50,357    2,160
                             --------  -------  -------   -------  -------
    Net operating income     $128,761  100,809  100,805   304,600  486,767
                             ========  =======  =======   =======  =======
  Earnings per common share
  Diluted earnings per
   common share              $    .97      .82      .36      1.84     4.09
  Amortization of core
   deposit and other
    intangible assets (1)         .09      .09      .08       .25      .28
  Merger-related gain (1)        (.15)       -        -      (.15)       -
  Merger-related
   expenses (1)                   .07        -      .35       .43      .02
                             --------  -------  -------   -------  -------
    Diluted net operating
     earnings per common
     share                   $    .98      .91      .79      2.37     4.39
                             ========  =======  =======   =======  =======


  Balance sheet data
  ------------------
  In millions
  Average assets
  Average assets             $ 69,154   64,997   66,984    66,984   65,198
  Goodwill                     (3,525)  (3,192)  (3,326)   (3,349)  (3,193)
  Core deposit and other
   intangible assets             (208)    (206)    (188)     (191)    (222)
  Deferred taxes                   41       28       30        31       31
                             --------  -------  -------   -------  -------
    Average tangible assets  $ 65,462   61,627   63,500    63,475   61,814
                             ========  =======  =======   =======  =======
  Average common equity
  Average common equity      $  6,794    6,415    6,491     6,501    6,465
  Goodwill                     (3,525)  (3,192)  (3,326)   (3,349)  (3,193)
  Core deposit and other
   intangible assets             (208)    (206)    (188)     (191)    (222)
  Deferred taxes                   41       28       30        31       31
                             --------  -------  -------   -------  -------
    Average tangible common
     equity                  $  3,102    3,045    3,007     2,992    3,081
                             ========  =======  =======   =======  =======

  --------------------------
  (1) After any related tax effect.

Media Contact: 

C. Michael Zabel 

(716) 842-5385

Investor Contact:

Donald J. MacLeod

(716) 842-5138