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 2009 Fourth Quarter and Full-Year Profits
PRNewswire-FirstCall
BUFFALO, N.Y.

M&T Bank Corporation ("M&T") today reported its results of operations for 2009.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") increased to $1.04 in the fourth quarter of 2009, up 13% from 2008's fourth quarter. GAAP-basis net income in the recent quarter totaled $137 million. Expressed as an annualized rate of return on average assets and average common stockholders' equity, GAAP-basis net income for the fourth quarter of 2009 was .79% and 7.09%, respectively.

During the recent quarter, M&T recognized $21 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 shareholders' equity. M&T also incurred merger-related expenses of $4 million, after applicable tax effect, associated with its second quarter acquisition of Provident Bankshares Corporation ("Provident") and with its third quarter agreement with the Federal Deposit Insurance Corporation ("FDIC") to assume all of the deposits and acquire certain assets of Bradford Bank ("Bradford"). Aggregating $25 million, those two charges reduced diluted earnings per common share in the final quarter of 2009 by $.21. GAAP-basis diluted earnings per common share and net income for the year ended December 31, 2009 were $2.89 and $380 million, respectively. Reflected in 2009's results were $36 million of net merger-related expenses, after tax effect, or $.31 of diluted earnings per common share. GAAP-basis net income for 2009 expressed as a rate of return on average assets and average common stockholders' equity was .56% and 5.07%, respectively.

Reflecting on M&T's financial performance, René F. Jones, Executive Vice President and Chief Financial Officer, commented, "By sticking with our approach of providing lending and banking services in our local markets, M&T produced solid earnings for both the fourth quarter and the full-year of 2009. We were pleased to see a continued widening of our net interest margin, which improved 10 basis points to 3.71% in the quarter. That key measure has increased for three consecutive quarters. Credit costs in the fourth quarter were down slightly and continue to be below current industry experience. The tangible common equity ratio strengthened impressively during the recent quarter, and was 5.13% at the end of 2009, up from 4.89% at September 30, 2009. Finally, our 2009 acquisitions of Provident and Bradford in the Mid-Atlantic region have proved to be meaningful, both in terms of the customer base to which we now provide our banking services and in our profitability, as they supplemented M&T's full-year diluted net operating earnings per common share by $.16."

Diluted earnings per common share were $.92 and $.97 in the fourth quarter of 2008 and the third quarter of 2009, respectively. Net income for those respective quarters was $102 million and $128 million. Net income expressed as an annualized rate of return on average assets and average common stockholders' equity for the fourth quarter of 2008 was .63% and 6.41%, respectively, compared with .73% and 6.72%, respectively, in the third quarter of 2009. For the year ended December 31, 2008, diluted earnings per common share and net income were $5.01 and $556 million, respectively. Expressed as a rate of return on average assets and average common stockholders' equity, net income was .85% and 8.64%, respectively, in 2008.

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 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. Reconciliations of GAAP to non-GAAP measures are provided herein.

During the fourth quarter of 2009, diluted net operating earnings per common share were $1.16, up 16% from $1.00 in the similar 2008 period and 18% above $.98 in 2009's third quarter. Net operating income for the fourth quarters of 2009 and 2008 was $151 million and $112 million, respectively, compared with $129 million in the third quarter of 2009. For the three months ended December 31, 2009, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common equity was .92% and 16.73%, respectively, up from .72% and 15.01% in the corresponding period of 2008 and .78% and 14.87%, respectively, in 2009's third quarter.

Diluted net operating earnings per common share were $3.54 in 2009 and $5.39 in 2008. Net operating income for 2009 and 2008 aggregated $455 million and $599 million, respectively. Net operating income in 2009 expressed as a rate of return on average tangible assets and average tangible common stockholders' equity was .71% and 13.42%, respectively, compared with .97% and 19.63% in 2008.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income was $565 million during the fourth quarter of 2009, up 15% from $491 million in the similar 2008 quarter and 2% higher than $553 million in the third quarter of 2009. The growth in such income as compared with the third quarter of 2009 reflects a widening of the net interest margin, which improved to 3.71% from 3.61%. That improvement resulted from lower interest rates paid on deposits and borrowings and continued growth in noninterest-bearing deposits.

Taxable-equivalent net interest income was $2.08 billion in 2009, 6% higher than $1.96 billion in 2008. Contributing to that improvement was growth in average loans and leases outstanding, which rose 4% to $51.0 billion in 2009 from $48.8 billion in 2008, and a widening of the net interest margin, which rose to 3.49% from 3.38%. The increase in average loans and leases was attributable to the 2009 acquisition transactions and the improved net interest margin resulted from lower interest rates paid on deposits and borrowings.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $145 million during the recently completed quarter, compared with $151 million in the corresponding 2008 period. Net charge-offs of loans were $135 million in the final quarter of 2009, representing an annualized 1.03% of average loans outstanding, improved from $144 million or 1.17% in the year-earlier quarter. During 2009's third quarter, the provision for credit losses totaled $154 million and net charge-offs aggregated $141 million, or 1.07% of average loans outstanding. The provision for credit losses rose to $604 million for the year ended December 31, 2009 from $412 million in 2008. Net loan charge-offs in 2009 totaled $514 million, or 1.01% of average loans outstanding, compared with $383 million or .78% of average loans in 2008.

Reflecting the poor economic environment and its impact on businesses and consumers, loans classified as nonaccrual totaled $1.33 billion, or 2.56% of total loans at December 31, 2009, compared with $755 million or 1.54% a year earlier and $1.23 billion or 2.35% at September 30, 2009. Assets taken in foreclosure of defaulted loans were $95 million at December 31, 2009, compared with $100 million at December 31, 2008 and $85 million at September 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 December 31, 2009, outstanding balances of those modified loans totaled $292 million, of which $108 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 the 2009 year-end.

Loans past due 90 days or more and accruing interest totaled $208 million at the recent year-end, including loans guaranteed by government-related entities of $193 million. Such past due loans were $159 million and $183 million at December 31, 2008 and September 30, 2009, respectively, including $114 million and $173 million of government guaranteed loans at those respective dates.

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 $878 million at December 31, 2009, increased from $788 million a year earlier and $868 million at September 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 acquisition transactions, the allowance-to-legacy loan ratio increased to 1.83% at December 31, 2009 from 1.61% at December 31, 2008. That same ratio was 1.81% at September 30, 2009.

Noninterest Income and Expense. Excluding gains and losses from investment securities, noninterest income of $300 million in the fourth quarter of 2009 was up 13% from $265 million in the similar 2008 quarter. Also excluding gains and losses from investment securities and the $29 million gain recorded on the Bradford transaction, noninterest income in 2009's third quarter was $296 million. On the same basis, noninterest income was $1.16 billion in 2009, 6% higher than $1.09 billion in 2008. Contributing to the improvements in the 2009 periods as compared with 2008 were higher mortgage banking revenues and service charges on acquisition-related deposit accounts.

Noninterest expense in the final quarter of 2009 totaled $478 million, compared with $447 million in the year-earlier quarter and $500 million in 2009's third quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of these expenses, noninterest operating expenses were $455 million in the recent quarter, compared with $431 million in 2008's fourth quarter and $469 million in the third quarter of 2009. Noninterest expense for the year ended December 31, 2009 totaled $1.98 billion, compared with $1.73 billion in 2008. Excluding those expenses considered to be nonoperating in nature, noninterest operating expenses were $1.83 billion in 2009 and $1.66 billion in 2008. The higher levels of operating expenses in the 2009 periods as compared with 2008 were due largely to the operations obtained in the 2009 acquisitions and higher deposit insurance assessments, including a $33 million special assessment levied by the FDIC in the second quarter of 2009. Partially offsetting those factors were reversals of the valuation allowance for capitalized residential mortgage servicing rights of $4 million in the fourth quarter and $22 million for the full year of 2009, as compared with additions to that allowance of $19 million and $16 million in those respective periods of 2008. Contributing to the decline in noninterest operating expenses from the third to the fourth quarter of 2009 were lower costs for salaries, including incentive compensation.

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 improved to 52.7% in the fourth quarter of 2009 from 57.0% in the year-earlier quarter and 55.2% in the third quarter of 2009. M&T's efficiency ratio for the years ended December 31, 2009 and 2008 was 56.5% and 54.4%, respectively.

If the second quarter 2009 special assessment by the FDIC was excluded from the computation, the efficiency ratio for 2009 would have been 55.5%.

Balance Sheet. M&T had total assets of $68.9 billion at December 31, 2009, up from $65.8 billion a year earlier. Loans and leases, net of unearned discount, totaled $51.9 billion at the 2009 year-end, up 6% from $49.0 billion at December 31, 2008. Total deposits were $47.4 billion at December 31, 2009, 11% higher than $42.6 billion at the end of 2008. Deposits at domestic offices rose $7.9 billion, or 20%, to $46.4 billion at the recent year-end from $38.5 billion at December 31, 2008. When excluding the impact of the 2009 acquisition transactions, core customer deposits jumped 16% to $39.9 billion at December 31, 2009 from $34.3 billion a year earlier. That substantial rise was largely driven by a $4.0 billion or 45% increase in noninterest-bearing deposits.

Total stockholders' equity was $7.8 billion and $6.8 billion at December 31, 2009 and 2008, representing 11.26% and 10.31% respectively, of total assets. Common stockholders' equity was $7.0 billion, or $59.31 per share at December 31, 2009, up from $6.2 billion, or $56.29 per share, a year earlier. Tangible equity per common share was $28.27 and $25.94 at December 31, 2009 and 2008, respectively. In the calculation of tangible equity per common share, stockholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances, which aggregated $3.7 billion and $3.4 billion at December 31, 2009 and 2008, respectively. M&T's tangible common equity to tangible assets ratio was 5.13% at December 31, 2009, compared with 4.59% and 4.89% at December 31, 2008 and September 30, 2009, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss fourth quarter and full year financial results today at 2:00 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. Callers should reference M&T Bank Corporation or the conference ID #49940743. 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 Friday, January 22, 2010 by calling 800-642-1687, or 706-645-9291 for international participants, and by making reference to ID #49940743. 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.

  M&T BANK CORPORATION
  Financial Highlights
                          Three months
                             ended                   Year ended
  Amounts in thousands,   December 31                December 31
   except per share   ------------------         --------------------
                         2009     2008   Change     2009       2008   Change
                      ---------  ------- ------  ---------  --------- ------

  Performance
  -----------

  Net income           $136,818  102,241   34%  $  379,891    555,887  -32%
  Net income
   available to
   common
   shareholders         122,910  101,451   21      332,006    555,096  -40

  Per common share:
    Basic earnings     $   1.05      .92   14%  $     2.90       5.04  -42%
    Diluted earnings       1.04      .92   13         2.89       5.01  -42
    Cash dividends     $    .70      .70    -   $     2.80       2.80    -

  Common shares
   outstanding:
    Average -
     diluted (1)        117,672  110,620    6%     114,776    110,904    3%
    Period end (2)      118,298  110,444    7      118,298    110,444    7

  Return on (annualized):
    Average total
     assets                 .79%     .63%              .56%       .85%
    Average common
     stockholders'
     equity                7.09%    6.41%             5.07%      8.64%

  Taxable-equivalent
   net interest
   income              $564,606  491,042   15%  $2,077,577  1,961,657    6%

  Yield on average
   earning assets          4.58%    5.35%             4.61%      5.69%
  Cost of
   interest-bearing
   liabilities             1.13%    2.32%             1.40%      2.68%
  Net interest spread      3.45%    3.03%             3.21%      3.01%
  Contribution
   of interest-free
   funds                    .26%     .34%              .28%       .37%
  Net interest margin      3.71%    3.37%             3.49%      3.38%

  Net charge-offs to
   average total
   net loans
   (annualized)            1.03%    1.17%             1.01%       .78%

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

  Net operating
   income              $150,776  111,784   35%  $  455,376    598,551   -24%
  Diluted net
   operating earnings
   per common share        1.16     1.00   16         3.54       5.39   -34
  Return on
   (annualized):
    Average tangible
     assets                 .92%     .72%              .71%       .97%
    Average tangible
     common equity        16.73%   15.01%            13.42%     19.63%
  Efficiency ratio        52.69%   57.03%            56.50%     54.35%



                                     At December 31
                               ------------------------
  Loan quality                     2009           2008    Change
  ------------                 ----------       -------   ------

  Nonaccrual loans             $1,331,702       755,397     76%
  Real estate and
   other foreclosed
   assets                          94,604        99,617     -5%
                               ----------       -------
    Total nonperforming
     assets                    $1,426,306       855,014     67%
                               ==========       =======

  Accruing loans past
   due 90 days or more         $  208,080       158,991     31%

  Government
   guaranteed loans
   included in totals
    above:
    Nonaccrual loans           $   38,579        32,506     19%
    Accruing loans past
     due 90 days or more          193,495       114,183     69%


  Renegotiated loans           $  212,548        91,575    132%

  Purchased impaired loans (4):
    Outstanding customer
     balance                   $  172,772             -      -%
    Carrying amount                88,170             -      -%

  Nonaccrual loans to
   total net loans                   2.56%         1.54%

  Allowance for credit
   losses to:
    M&T legacy loans                 1.83%         1.61%
    Total loans                      1.69%         1.61%

  --------------------------------------------------------------------------
  (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.  Reconciliations of net
       income with net operating income appear herein.
  (4)  Accruing loans that were impaired at acquisition date and recorded
       at fair value.


  M&T BANK CORPORATION
  Financial Highlights, Five Quarter Trend


  Amounts in                       Three months ended
   thousands,   ------------------------------------------------------------
   except per   December 31, September 30,  June 30,  March 31, December 31,
   share           2009          2009         2009      2009       2008
                ------------ -------------  --------  --------- ------------

  Performance
  -----------

  Net income       $136,818     127,664     51,188     64,221    102,241
  Net income
   available to
   common
   shareholders     122,910     113,894     40,516     54,618    101,451

  Per common share:
    Basic earnings    $1.05         .97        .36        .49        .92
    Diluted earnings   1.04         .97        .36        .49        .92
    Cash dividends    $ .70         .70        .70        .70        .70

  Common shares
   outstanding:
    Average -
     diluted (1)    117,672     117,547    113,521    110,439    110,620
    Period end (2)  118,298     118,156    118,012    111,132    110,444

  Return on
   (annualized):
    Average total
     assets             .79%        .73%       .31%       .40%       .63%
    Average common
     stockholders'
      equity           7.09%       6.72%      2.53%      3.61%      6.41%

  Taxable-equivalent
   net interest
   income          $564,606     553,450    506,781    452,740    491,042

  Yield on average
   earning assets      4.58%       4.60%      4.62%      4.65%      5.35%
  Cost of interest-
   bearing
   liabilities         1.13%       1.26%      1.47%      1.74%      2.32%
  Net interest spread  3.45%       3.34%      3.15%      2.91%      3.03%
  Contribution of
   interest-free funds  .26%        .27%       .28%       .28%       .34%
  Net interest margin  3.71%       3.61%      3.43%      3.19%      3.37%

  Net charge-offs to
   average total
   net loans
   (annualized)        1.03%       1.07%      1.09%       .83%      1.17%

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

  Net operating
   income          $150,776     128,761    100,805     75,034    111,784
  Diluted net
   operating
   earnings per
   common share        1.16         .98        .79        .59       1.00
  Return on
   (annualized):
    Average tangible
     assets             .92%        .78%       .64%       .50%       .72%
    Average tangible
     common equity    16.73%      14.87%     12.08%      9.36%     15.01%
  Efficiency ratio    52.69%      55.21%     60.03%     58.68%     57.03%


                December 31, September 30,  June 30,  March 31, December 31,
  Loan quality     2009          2009         2009      2009       2008
  ------------  ------------ -------------  --------  --------- ------------

  Nonaccrual
   loans         $1,331,702    1,228,341   1,111,423  1,003,987    755,397
  Real estate
   and other
   foreclosed
   assets            94,604       84,676      90,461    100,270     99,617
                ------------ ------------- ---------  --------- ------------
    Total
     nonperforming
     assets      $1,426,306    1,313,017   1,201,884  1,104,257    855,014
                ============ ============= =========  ========= ============

  Accruing loans
   past due
   90 days or
   more          $  208,080      182,750     155,125    142,842    158,991

  Government
   guaranteed loans
   included in
   totals above:
    Nonaccrual
     loans       $   38,579       38,590      38,075     38,460     32,506
    Accruing loans
     past due 90
     days or more   193,495      172,701     143,886    127,237    114,183

  Renegotiated
   loans         $  212,548      190,917     170,950    130,932     91,575

  Purchased
   impaired
   loans (4):
    Outstanding
     customer
     balance     $  172,772      209,138     170,400          -          -
    Carrying
     amount          88,170      108,058      97,730          -          -

  Nonaccrual loans
   to total net
   loans               2.56%        2.35%       2.11%      2.05%      1.54%

  Allowance for credit
   losses to:
    M&T legacy loans   1.83%        1.81%       1.76%      1.73%      1.61%
    Total loans        1.69%        1.66%       1.62%      1.73%      1.61%

  --------------------------------------------------------------------------
  (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.  Reconciliations of net
       income with net operating income appear herein.
  (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 ended            Year ended
                           December 31                December 31
                           -----------                -----------
  Dollars in thousands    2009     2008  Change      2009       2008  Change
                       --------  ------- ------   --------    ------- ------

  Interest income      $692,669  774,501   -11% $2,725,197  3,277,591   -17%
  Interest expense      133,950  288,426   -54     669,449  1,337,795   -50
                       --------  -------        ----------  ---------

  Net interest income   558,719  486,075    15   2,055,748  1,939,796     6

  Provision for credit
   losses               145,000  151,000    -4     604,000    412,000    47
                       --------  -------        ----------  ---------

  Net interest income
   after provision for
   credit losses        413,719  335,075    23   1,451,748  1,527,796    -5

  Other income
     Mortgage banking
      revenues           50,176   39,721    26     207,561    156,012    33
     Service charges on
      deposit accounts  127,185  106,367    20     469,195    430,532     9
     Trust income        29,660   36,630   -19     128,568    156,149   -18
     Brokerage services
      income             14,396   15,284    -6      57,611     64,186   -10
     Trading account
      and foreign
      exchange gains      6,669    2,003   233      23,125     17,630    31
     Gain on bank
      investment
      securities            354      392     -       1,165     34,470     -
     Total other-than-
      temporary
      impairment
      ("OTTI") losses   (61,626) (23,896)    -    (264,363)  (182,221)    -
     Portion of OTTI
      losses recognized
      in other
      comprehensive
      income (before
      taxes)             27,330        -     -     126,066          -     -
                       --------  -------        ----------  ---------
      Net OTTI losses
       recognized in
       earnings         (34,296) (23,896)    -    (138,297)  (182,221)    -
     Equity in earnings
      of Bayview Lending
      Group LLC         (10,635)  (8,687)    -     (25,898)   (37,453)    -
     Other revenues
      from operations    82,381   73,603    12     325,076    299,674     8
                       --------  -------        ----------  ---------
         Total other
           income       265,890  241,417    10   1,048,106    938,979    12

  Other expense
     Salaries and
      employee benefits 247,080  232,410     6   1,001,873    957,086     5
     Equipment and net
      occupancy          53,703   47,795    12     211,391    188,845    12
     Printing, postage
      and supplies        9,338    8,401    11      38,216     35,860     7
     Amortization of
      core deposit
      and other
      intangible
      assets             16,730   15,708     7      64,255     66,646    -4
     Deposit insurance   19,902    2,094   850      96,519      6,689 1,343
     Other costs of
      operations        131,698  140,411    -6     568,309    471,870    20
                       --------  -------        ----------  ---------
          Total other
           expense      478,451  446,819     7   1,980,563  1,726,996    15

  Income before income
   taxes                201,158  129,673    55     519,291    739,779   -30

  Applicable income
   taxes                 64,340   27,432   135     139,400    183,892   -24
                       --------  -------        ----------  ---------
  Net income           $136,818  102,241    34%   $379,891    555,887   -32%
                       ========  =======        ==========  =========




  M&T BANK CORPORATION
  Condensed Consolidated Statement of Income, Five Quarter Trend

                                      Three months ended
                         ---------------------------------------------
                         December  September   June    March  December
  Dollars in                31,        30,      30,      31,     31,
   thousands               2009       2009     2009     2009    2008
                         --------   -------  -------  -------  -------

  Interest income        $692,669   700,593  677,423  654,512  774,501
  Interest expense        133,950   152,938  175,856  206,705  288,426
                         --------   -------  -------  -------  -------

  Net interest income     558,719   547,655  501,567  447,807  486,075

  Provision for credit
   losses                 145,000   154,000  147,000  158,000  151,000
                         --------   -------  -------  -------  -------

  Net interest income
   after provision
   for credit losses      413,719   393,655  354,567  289,807  335,075

  Other income
     Mortgage banking
      revenues             50,176    48,169   52,983   56,233   39,721
     Service charges
      on deposit accounts 127,185   128,502  112,479  101,029  106,367
     Trust income          29,660    31,586   32,442   34,880   36,630
     Brokerage services
      income               14,396    14,329   13,493   15,393   15,284
     Trading account and
      foreign exchange
      gains                 6,669     7,478    7,543    1,435    2,003
     Gain (loss) on
      bank investment
      securities              354       (56)     292      575      392
     Total other-than-
      temporary impairment
      ("OTTI") losses     (61,626)  (64,232) (75,697) (62,808) (23,896)
     Portion of OTTI
      losses recognized
      in other
      comprehensive
      income (before
      taxes)               27,330    17,199   50,928   30,609        -
                         --------   -------  -------  -------  -------
        Net OTTI losses
         recognized in
         earnings         (34,296)  (47,033) (24,769) (32,199) (23,896)
     Equity in earnings
      of Bayview Lending
      Group LLC           (10,635)  (10,912)    (207)  (4,144)  (8,687)
     Other revenues
      from operations      82,381   106,163   77,393   59,139   73,603
                         --------   -------  -------  -------  -------
          Total other
           income         265,890   278,226  271,649  232,341  241,417

  Other expense
     Salaries and
      employee benefits   247,080   255,449  249,952  249,392  232,410
     Equipment and net
      occupancy            53,703    58,195   51,321   48,172   47,795
     Printing, postage
      and supplies          9,338     8,229   11,554    9,095    8,401
     Amortization of
      core deposit and
      other intangible
      assets               16,730    16,924   15,231   15,370   15,708
     Deposit insurance     19,902    21,124   49,637    5,856    2,094
     Other costs of
      operations          131,698   140,135  186,015  110,461  140,411
                         --------   -------  -------  -------  -------
          Total other
           expense        478,451   500,056  563,710  438,346  446,819

  Income before
   income taxes           201,158   171,825   62,506   83,802  129,673

  Applicable income
   taxes                   64,340    44,161   11,318   19,581   27,432
                         --------   -------  -------  -------  -------

  Net income             $136,818   127,664   51,188   64,221  102,241
                         ========   =======   ======   ======  =======




  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet

                                            December 31
                                       ---------------------
  Dollars in thousands                    2009       2008     Change
                                       ---------- ----------  ------

  ASSETS

  Cash and due from banks             $ 1,226,223  1,546,804    -21%

  Interest-bearing deposits at banks      133,335     10,284  1,197

  Federal funds sold and agreements
   to resell securities                    20,119    111,347    -82

  Trading account assets                  386,984    617,821    -37

  Investment securities                 7,780,609  7,919,207     -2

  Loans and leases:
     Commercial, financial, etc.       13,479,447 14,261,882     -5
     Real estate - commercial          20,949,931 18,837,665     11
     Real estate - consumer             5,463,463  4,904,424     11
     Consumer                          12,043,845 10,996,492     10
                                       ---------- ----------
        Total loans and leases, net
         of unearned discount          51,936,686 49,000,463      6
           Less: allowance for
            credit losses                 878,022    787,904     11
                                       ---------- ----------

     Net loans and leases              51,058,664 48,212,559      6

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

  Core deposit and other intangible
   assets                                 182,418    183,496     -1

  Other assets                          4,567,422  4,022,111     14
                                       ---------- ----------

    Total assets                      $68,880,399 65,815,757      5%
                                      =========== ==========


  LIABILITIES AND STOCKHOLDERS' EQUITY

  Noninterest-bearing deposits at
   U.S. offices                       $13,794,636  8,856,114     56%

  Other deposits at U.S. offices       32,604,764 29,677,163     10

  Deposits at foreign office            1,050,438  4,047,986    -74
                                       ---------- ----------

     Total deposits                    47,449,838 42,581,263     11

  Short-term borrowings                 2,442,582  3,009,735    -19

  Accrued interest and other
   liabilities                            995,056  1,364,879    -27

  Long-term borrowings                 10,240,016 12,075,149    -15
                                       ---------- ----------

     Total liabilities                 61,127,492 59,031,026      4

  Stockholders' equity:

     Preferred                            730,235    567,463     29
     Common (1)                         7,022,672  6,217,268     13
                                       ---------- ----------

        Total stockholders' equity      7,752,907  6,784,731     14
                                       ---------- ----------

     Total liabilities and
      stockholders' equity            $68,880,399 65,815,757      5%
                                      =========== ==========
  -----------------------------------------------------------------------
   (1)  Reflects accumulated other comprehensive loss, net of applicable
       income tax effect, of $336.0 million at December 31, 2009 and
       $736.9 million at December 31, 2008.




  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet, Five Quarter Trend

                     December   September     June      March    December
  Dollars in            31,        30,         30,        31,       31,
   thousands           2009       2009        2009       2009      2008
                    ----------- ---------- ---------- ---------- ----------

  ASSETS

  Cash and due from
   banks            $ 1,226,223  1,356,508  1,148,428  1,117,845  1,546,804

  Interest-bearing
   deposits at banks    133,335     54,443     59,950     27,374     10,284

  Federal funds sold
   and agreements
   to resell securities  20,119     17,206      2,300    125,800    111,347

  Trading account
   assets               386,984    497,064    495,324    591,802    617,821

  Investment
   securities         7,780,609  7,634,262  8,155,434  7,686,845  7,919,207

  Loans and leases:

     Commercial,
      financial,
      etc.           13,479,447 13,517,538 14,180,609 13,986,663 14,261,882
     Real estate -
      commercial     20,949,931 21,007,376 20,787,198 18,833,865 18,837,665
     Real estate -
      consumer        5,463,463  5,427,260  5,471,775  5,171,953  4,904,424
     Consumer        12,043,845 12,251,598 12,275,062 10,925,659 10,996,492
                    ----------- ---------- ---------- ---------- ----------
       Total loans
        and leases,
        net of
        unearned
        discount     51,936,686 52,203,772 52,714,644 48,918,140 49,000,463
          Less:
           allowance
           for credit
           losses       878,022    867,874    855,365    845,971    787,904
                    ----------- ---------- ---------- ---------- ----------

    Net loans and
     leases          51,058,664 51,335,898 51,859,279 48,072,169 48,212,559

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

  Core deposit and
   other intangible
   assets               182,418    199,148    216,072    168,126    183,496

  Other assets        4,567,422  4,378,296  4,451,805  3,901,106  4,022,111
                    ----------- ---------- ---------- ---------- ----------

    Total assets    $68,880,399 68,997,450 69,913,217 64,883,195 65,815,757
                    =========== ========== ========== ========== ==========

  LIABILITIES AND
   STOCKHOLDERS' EQUITY

  Noninterest-
   bearing deposits
   at U.S. offices  $13,794,636 12,730,083 12,403,999  9,544,932  8,856,114

  Other deposits at
   U.S. offices      32,604,764 32,813,698 33,265,704 30,763,204 29,677,163

  Deposits at foreign
   office             1,050,438  1,318,070  1,085,004  2,169,220  4,047,986
                    ----------- ---------- ---------- ---------- ----------

    Total deposits   47,449,838 46,861,851 46,754,707 42,477,356 42,581,263

  Short-term
   borrowings         2,442,582  2,927,268  2,951,149  2,641,811  3,009,735

  Accrued interest
   and other
   liabilities          995,056  1,241,576  1,238,959  1,326,545  1,364,879

  Long-term
   borrowings        10,240,016 10,354,392 11,568,238 11,535,644 12,075,149
                    ----------- ---------- ---------- ---------- ----------

    Total
     liabilities     61,127,492 61,385,087 62,513,053 57,981,356 59,031,026

  Stockholders' equity:

     Preferred          730,235    727,748    725,472    568,284    567,463
     Common (1)       7,022,672  6,884,615  6,674,692  6,333,555  6,217,268
                    ----------- ---------- ---------- ---------- ----------

       Total
        stockholders'
        equity        7,752,907  7,612,363  7,400,164  6,901,839  6,784,731
                    ----------- ---------- ---------- ---------- ----------

    Total liabilities
     and
     stockholders'
     equity         $68,880,399 68,997,450 69,913,217 64,883,195 65,815,757
                    =========== ========== ========== ========== ==========

  -------------------------------------------------------------------------
   (1)  Reflects accumulated other comprehensive loss, net of applicable
       income tax effect, of $336.0 million at December 31, 2009,
       $419.3 million at September 30, 2009, $580.8 million at June 30,
       2009, $622.4 million at March 31, 2009, and $736.9 million at
       December 31, 2008.




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

                                               Three months ended
                                   ----------------------------------------
                                   December 31,  December 31, September 30,
  Dollars in millions                 2009          2008          2009
                                   ------------  ------------  ------------
                                   Balance Rate  Balance Rate  Balance Rate
                                   ------- ----  ------- ----  ------- ----
  ASSETS

  Interest-bearing deposits at
   banks                           $    74  .08%      13  .55%      66  .04%

  Federal funds sold and agreements
    to resell securities                23  .19      103  .41       11  .58

  Trading account assets                70  .66       99 3.16       83  .82

  Investment securities              8,197 4.63    8,894 4.90    8,420 4.81

  Loans and leases, net of
   unearned discount
     Commercial, financial, etc.    13,527 3.87   14,213 4.74   13,801 3.78
     Real estate - commercial       20,950 4.48   18,666 5.55   20,843 4.48
     Real estate - consumer          5,457 5.37    4,904 5.85    5,429 5.43
     Consumer                       12,153 5.32   11,027 6.08   12,247 5.37
                                   -------       -------       -------
        Total loans and
         leases, net                52,087 4.59   48,810 5.45   52,320 4.58
                                   -------       -------       -------

    Total earning assets            60,451 4.58   57,919 5.35   60,900 4.60

  Goodwill                           3,525         3,192         3,525

  Core deposit and other
   intangible assets                   191           191           208

  Other assets                       4,752         3,640         4,521
                                   -------       -------       -------

    Total assets                   $68,919        64,942        69,154
                                   =======       =======       =======

  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing deposits
     NOW accounts                  $   579  .18      528  .45      541  .21
     Savings deposits               24,237  .36   19,540 1.27   23,367  .37
     Time deposits                   8,304 1.89    9,388 3.06    9,246 2.17
     Deposits at foreign office      1,300  .11    2,985  .71    1,444  .13
                                   -------       -------       -------
        Total interest-bearing
         deposits                   34,420  .72   32,441 1.72   34,598  .84
                                   -------       -------       -------

  Short-term borrowings              2,308  .17    4,950  .82    2,663  .26
  Long-term borrowings              10,253 2.73   12,058 4.55   11,008 2.80
                                   -------       -------       -------

  Total interest-bearing
   liabilities                      46,981 1.13   49,449 2.32   48,269 1.26

  Noninterest-bearing deposits      12,945         8,006        12,122

  Other liabilities                  1,307         1,133         1,242
                                   -------       -------       -------

    Total liabilities               61,233        58,588        61,633

  Stockholders' equity               7,686         6,354         7,521
                                   -------       -------       -------

    Total liabilities and
     stockholders' equity          $68,919        64,942        69,154
                                   =======       =======       =======


  Net interest spread                      3.45          3.03          3.34
  Contribution of interest-free funds       .26           .34           .27
  Net interest margin                      3.71%         3.37%         3.61%




                                                  Change in balance
                                               December 31, 2009 from
                                            ----------------------------
                                            December 31,   September 30,
  Dollars in millions                           2008           2009
                                            ------------   -------------
  ASSETS

  Interest-bearing deposits at banks             470%           12%

  Federal funds sold and agreements
    to resell securities                         -77           103

  Trading account assets                         -29           -15

  Investment securities                           -8            -3

  Loans and leases, net of unearned discount
    Commercial, financial, etc.                   -5            -2
    Real estate - commercial                      12             1
    Real estate - consumer                        11             1
    Consumer                                      10            -1
       Total loans and leases, net                 7             -

    Total earning assets                           4            -1

  Goodwill                                        10             -

  Core deposit and other intangible assets         -            -8

  Other assets                                    31             5

    Total assets                                   6%            -%



  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing deposits
    NOW accounts                                  10%            7%
    Savings deposits                              24             4
    Time deposits                                -12           -10
    Deposits at foreign office                   -56           -10
       Total interest-bearing deposits             6            -1

  Short-term borrowings                          -53           -13
  Long-term borrowings                           -15            -7

  Total interest-bearing liabilities              -5            -3

  Noninterest-bearing deposits                    62             7

  Other liabilities                               15             5

    Total liabilities                              5            -1

  Stockholders' equity                            21             2

    Total liabilities and stockholders' equity     6%            -%




                                              Year ended
                                              December 31
                                      ---------------------------
  Dollars in millions                     2009           2008
                                      ------------  -------------  Change in
                                      Balance Rate  Balance  Rate   balance
                                      ------- ----  -------- ----   -------
  ASSETS

  Interest-bearing deposits at banks $    50  .07%       10 1.07%     397%

  Federal funds sold and agreements
   to resell securities                   52  .25       109 1.91      -52

  Trading account assets                  87  .74        79 1.95        9

  Investment securities                8,403 4.79     8,973 5.05       -6

  Loans and leases, net of unearned
   discount
     Commercial, financial, etc.      13,855 3.79    13,802 5.24        -
     Real estate - commercial         20,085 4.45    18,428 5.82        9
     Real estate - consumer            5,297 5.45     5,465 6.03       -3
     Consumer                         11,722 5.43    11,150 6.43        5
                                     -------        -------
        Total loans and leases, net   50,959 4.60    48,845 5.82        4
                                     -------        -------

    Total earning assets              59,551 4.61    58,016 5.69        3

  Goodwill                             3,393          3,193             6

  Core deposit and other intangible
   assets                                191            214           -11

  Other assets                         4,337          3,709            17
                                     -------        -------

    Total assets                     $67,472         65,132             4%
                                     =======        =======



  LIABILITIES AND STOCKHOLDERS' EQUITY

  Interest-bearing deposits
     NOW accounts                    $   543  .21       502  .58        8%
     Savings deposits                 22,832  .49    18,170 1.37       26
     Time deposits                     8,782 2.35     9,583 3.45       -8
     Deposits at foreign office        1,665  .14     3,986 2.12      -58
                                     -------        -------
        Total interest-bearing
         deposits                     33,822  .95    32,241 2.07        5
                                     -------        -------

  Short-term borrowings                2,911  .24     6,086 2.34      -52
  Long-term borrowings                11,092 3.07    11,605 4.56       -4
                                     -------        -------

  Total interest-bearing
   liabilities                        47,825 1.40    49,932 2.68       -4

  Noninterest-bearing deposits        11,054          7,674            44

  Other liabilities                    1,311          1,089            20
                                     -------        -------

     Total liabilities                60,190         58,695             3

  Stockholders' equity                 7,282          6,437            13
                                     -------        -------

     Total liabilities and
      stockholders' equity           $67,472         65,132             4%
                                     =======        =======


  Net interest spread                        3.21           3.01
  Contribution of interest-free funds         .28            .37
  Net interest margin                        3.49%          3.38%



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


                                Three months ended        Year ended
                                   December 31            December 31
                                  2009     2008         2009        2008
                                --------  -------    ----------  ---------
  Income statement data
  ---------------------
  In thousands, except per share
  Net income
  Net income                    $136,818  102,241    $  379,891    555,887
  Amortization of core deposit
   and other intangible
   assets (1)                     10,152    9,543        39,006     40,504
  Merger-related gain (1)              -        -       (17,684)         -
  Merger-related expenses (1)      3,806        -        54,163      2,160
                                --------  -------    ----------  ---------
    Net operating income        $150,776  111,784    $  455,376    598,551
                                ========  =======    ==========  =========
  Earnings per common share
  Diluted earnings per common
   share                        $   1.04      .92    $     2.89       5.01
  Amortization of core deposit
   and other intangible
   assets (1)                        .09      .08           .34        .36
  Merger-related gain (1)              -        -          (.15)         -
  Merger-related expenses (1)        .03        -           .46        .02
                                --------  -------    ----------  ---------
    Diluted net operating
     earnings per common share  $   1.16     1.00    $     3.54       5.39
                                ========  =======    ==========  =========
  Other expense
  Other expense                 $478,451  446,819    $1,980,563  1,726,996
  Amortization of core deposit
   and other intangible assets   (16,730) (15,708)      (64,255)   (66,646)
  Merger-related expenses         (6,264)       -       (89,157)    (3,547)
                                --------  -------    ----------  ---------
    Noninterest operating
     expense                    $455,457  431,111    $1,827,151  1,656,803
                                ========  =======    ==========  =========
  Merger-related expenses
  Salaries and employee
   benefits                     $    381        -    $   10,030         62
  Equipment and net occupancy        545        -         2,975         49
  Printing, postage and
   supplies                          233        -         3,677        367
  Other costs of operations        5,105        -        72,475      3,069
                                --------  -------    ----------  ---------
    Total                       $  6,264        -    $   89,157      3,547
                                ========  =======    ==========  =========

  Balance sheet data
  ------------------
  In millions
  Average assets
  Average assets                $ 68,919   64,942    $   67,472     65,132
  Goodwill                        (3,525)  (3,192)       (3,393)    (3,193)
  Core deposit and other
   intangible assets                (191)    (191)         (191)      (214)
  Deferred taxes                      37       25            33         30
                                --------  -------    ----------  ---------
    Average tangible assets     $ 65,240   61,584    $   63,921     61,755
                                ========  =======    ==========  =========
  Average common equity
  Average total equity          $  7,686    6,354    $    7,282      6,437
  Preferred stock                   (729)     (55)         (666)       (14)
                                --------  -------    ----------  ---------
    Average common equity          6,957    6,299         6,616      6,423
  Goodwill                        (3,525)  (3,192)       (3,393)    (3,193)
  Core deposit and other
   intangible assets                (191)    (191)         (191)      (214)
  Deferred taxes                      37       25            33         30
                                --------  -------    ----------  ---------
    Average tangible common
     equity                     $  3,278    2,941    $    3,065      3,046
                                ========  =======    ==========  =========

  At end of quarter
  Total assets
  Total assets                  $ 68,880   65,816    $   68,880     65,816
  Goodwill                        (3,525)  (3,192)       (3,525)    (3,192)
  Core deposit and other
   intangible assets                (182)    (183)         (182)      (183)
  Deferred taxes                      35       23            35         23
                                --------  -------    ----------  ---------
    Total tangible assets       $ 65,208   62,464    $   65,208     62,464
                                ========  =======    ==========  =========
  Total common equity
  Total equity                  $  7,753    6,785    $    7,753      6,785
  Preferred stock                   (730)    (568)         (730)      (568)
  Unamortized discount and
   undeclared dividends -
   preferred stock                    (6)       -            (6)         -
                                --------  -------    ----------  ---------
    Total common equity            7,017    6,217         7,017      6,217
  Goodwill                        (3,525)  (3,192)       (3,525)    (3,192)
  Core deposit and other
   intangible assets                (182)    (183)         (182)      (183)
  Deferred taxes                      35       23            35         23
                                --------  -------    ----------  ---------
    Total tangible common
     equity                     $  3,345    2,865    $    3,345      2,865
                                ========  =======    ==========  =========

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



  M&T BANK CORPORATION
  Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

                                      Three months ended
                ------------------------------------------------------------
                December 31, September 30,  June 30,  March 31, December 31,
                    2009         2009         2009       2009       2008
                ------------ ------------- --------- ---------- ------------
  Income statement data
  ---------------------
  In thousands,
   except per share
  Net income
  Net income       $136,818       127,664    51,188     64,221      102,241
  Amortization of
   core deposit and
   other intangible
   assets (1)        10,152        10,270     9,247      9,337        9,543
  Merger-related
   gain (1)               -       (17,684)        -          -            -
  Merger-related
   expenses (1)       3,806         8,511    40,370      1,476            -
                ------------ ------------- --------- ---------- ------------
    Net operating
     income        $150,776       128,761   100,805     75,034      111,784
                ============ ============= ========= ========== ============
  Earnings per
   common share
  Diluted earnings
   per common
   share           $   1.04           .97       .36        .49          .92
  Amortization of
   core deposit and
   other intangible
   assets (1)           .09           .09       .08        .09          .08
  Merger-related
   gain (1)               -          (.15)        -          -            -
  Merger-related
   expenses (1)         .03           .07       .35        .01            -
                ------------ ------------- --------- ---------- ------------
    Diluted net
     operating
     earnings
     per common
     share         $   1.16           .98       .79        .59         1.00
                ============ ============= ========= ========== ============
  Other expense
  Other expense    $478,451       500,056   563,710    438,346      446,819
  Amortization of
   core deposit
   and other
   intangible
   assets           (16,730)      (16,924)  (15,231)   (15,370)     (15,708)
  Merger-related
   expenses          (6,264)      (14,010)  (66,457)    (2,426)           -
                ------------ ------------- --------- ---------- ------------
    Noninterest
     operating
     expense       $455,457       469,122   482,022    420,550      431,111
                ============ ============= ========= ========== ============
  Merger-related
   expenses
  Salaries and
   employee
   benefits        $    381           870     8,768         11            -
  Equipment and net
   occupancy            545         1,845       581          4            -
  Printing, postage
   and supplies         233           629     2,514        301            -
  Other costs of
   operations         5,105        10,666    54,594      2,110            -
                ------------ ------------- --------- ---------- ------------
    Total          $  6,264        14,010    66,457      2,426            -
                ============ ============= ========= ========== ============


  Balance sheet data
  ------------------
  In millions
  Average assets
  Average assets   $ 68,919        69,154    66,984     64,766       64,942
  Goodwill           (3,525)       (3,525)   (3,326)    (3,192)      (3,192)
  Core deposit and
   other intangible
   assets              (191)         (208)     (188)      (176)        (191)
  Deferred taxes         37            41        30         22           25
                ------------ ------------- --------- ---------- ------------
    Average
     tangible
     assets        $ 65,240        65,462    63,500     61,420       61,584
                ============ ============= ========= ========== ============
  Average common
   equity
  Average total
   equity          $  7,686         7,521     7,127      6,780        6,354
  Preferred
   stock               (729)         (727)     (636)      (568)         (55)
                ------------ ------------- --------- ---------- ------------
    Average common
     equity           6,957         6,794     6,491      6,212        6,299
  Goodwill           (3,525)       (3,525)   (3,326)    (3,192)      (3,192)
  Core deposit
   and other
   intangible
   assets              (191)         (208)     (188)      (176)        (191)
  Deferred taxes         37            41        30         22           25
                ------------ ------------- --------- ---------- ------------
    Average
     tangible
     common
     equity        $  3,278         3,102     3,007      2,866        2,941
                ============ ============= ========= ========== ============

  At end of quarter
  Total assets
  Total assets    $  68,880        68,997    69,913     64,883       65,816
  Goodwill           (3,525)       (3,525)   (3,525)    (3,192)      (3,192)
  Core deposit
   and other
   intangible
   assets              (182)         (199)     (216)      (168)        (183)
  Deferred taxes         35            39        43         21           23
                ------------ ------------- --------- ---------- ------------
    Total tangible
     assets       $  65,208        65,312    66,215     61,544       62,464
                ============ ============= ========= ========== ============
  Total common
   equity
  Total equity    $   7,753         7,612     7,400      6,902        6,785
  Preferred stock      (730)         (728)     (725)      (568)        (568)
  Unamortized
   discount and
   undeclared
   dividends -
   preferred
   stock                 (6)           (5)       (6)        (5)           -
                ------------ ------------- --------- ---------- ------------
    Total common
     equity           7,017         6,879     6,669      6,329        6,217
  Goodwill           (3,525)       (3,525)   (3,525)    (3,192)      (3,192)
  Core deposit
   and other
   intangible
   assets              (182)         (199)     (216)      (168)        (183)
  Deferred taxes         35            39        43         21           23
                ------------ ------------- --------- ---------- ------------
    Total
     tangible
     common
     equity       $   3,345         3,194     2,971      2,990        2,865
                ============ ============= ========= ========== ============

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

Media Contact: 

C. Michael Zabel 

(716) 842-5385

Investor Contact:

Donald J. MacLeod

(716) 842-5138