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

M&T Bank Corporation ("M&T") today reported its results of operations for the quarter ended June 30, 2010.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the second quarter of 2010 rose 306% to $1.46 from $.36 in the second quarter of 2009 and were 27% higher than $1.15 in the initial 2010 quarter. GAAP-basis net income in the recent quarter aggregated $189 million, up from $51 million and $151 million in the second quarter of 2009 and the first quarter of 2010, respectively. GAAP-basis net income for the second quarter of 2010 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.11% and 9.67%, respectively, improved from .31% and 2.53%, respectively, in the year-earlier quarter and .89% and 7.86%, respectively, in the first quarter of 2010.

The recent quarter's earnings as compared with the second quarter of 2009 reflects a significant rise in net interest income, resulting from a widening of the net interest margin, and a lower provision for credit losses. Also contributing to the improved performance as compared with the year-earlier quarter were lower assessments by the Federal Deposit Insurance Corporation ("FDIC") and acquisition-related expenses incurred in 2009's second quarter associated with M&T's acquisition of Provident Bankshares Corporation ("Provident") on May 23, 2009 related to systems conversions and other costs of integrating operations and introducing Provident's former customers to M&T's products and services. Such costs aggregated $40 million, after applicable tax effect, or $.35 of diluted earnings per common share, in the second quarter of 2009. Increases in net interest income, service charges on deposit accounts and mortgage banking revenues combined with declines in the provision for credit losses and personnel costs contributed to the rise in net income as compared with the initial 2010 quarter.

Reflecting on M&T's second quarter performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "This quarter's results were strong in every respect. Performance metrics including net interest margin, the efficiency ratio, credit costs and our capital position all improved during the quarter. Of note, the net interest margin continued to widen, up six basis points to 3.84% from 3.78% in the first quarter, while average core deposits grew an annualized 4%. At the same time, we strengthened our tangible common equity ratio to 5.75% at June 30, 2010 from 5.43% at March 31, 2010."

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 and gains associated with merging acquired operations into M&T, since such items 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 in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related expenses and gains, increased for the fifth consecutive quarter, totaling $1.53 in the recent quarter, up from $.79 and $1.23 in the second quarter of 2009 and the first quarter of 2010, respectively. Net operating income during the second quarter of 2010 was $198 million, compared with $101 million and $161 million in the second quarter of 2009 and the first quarter of 2010, respectively. Expressed as an annualized rate of return on average tangible assets and average tangible common stockholders' equity, net operating income was 1.23% and 20.36%, respectively, in the recently completed quarter, compared with .64% and 12.08% in the second quarter of 2009 and 1.00% and 17.34% in the initial 2010 quarter.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $573 million in the second quarter of 2010, up 13% from $507 million in the year-earlier period and 2% higher than $562 million in the first quarter of 2010. The significant improvement from the second quarter of 2009 was predominantly the result of a 41 basis point widening of the net interest margin to 3.84% in the recent quarter from 3.43% in the year-earlier quarter. The increase in taxable-equivalent net interest income from the initial 2010 quarter was due to a six basis point widening of the net interest margin, partially offset by a 1% decline in average earning assets.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $85 million in the recent quarter, improved from $147 million in the second quarter of 2009 and $105 million in the initial quarter of 2010. Net charge-offs of loans totaled $82 million during the second 2010 quarter, down from $138 million and $95 million in the second quarter of 2009 and the first quarter of 2010, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .64% and 1.09% in the second quarter of 2010 and 2009, respectively, and .74% in the first quarter of 2010.

Loans classified as nonaccrual aggregated $1.09 billion, or 2.13% of total loans at June 30, 2010, compared with $1.11 billion or 2.11% a year earlier and $1.34 billion or 2.60% at March 31, 2010. Assets taken in foreclosure of defaulted loans were $193 million at June 30, 2010, up from $90 million at June 30, 2009 and $95 million at March 31, 2010. The increase in such assets at the recent quarter-end resulted from the transfer of collateral related to a commercial real estate loan that was placed in nonaccrual status during the fourth quarter of 2009. The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.50% at June 30, 2010, improved from 2.78% at March 31, 2010. That ratio was 2.28% at June 30, 2009.

Loans past due 90 days or more and accruing interest totaled $203 million at the end of the recent quarter, including loans guaranteed by government-related entities of $188 million. Such past due loans were $155 million and $203 million at June 30, 2009 and March 31, 2010, respectively, including $144 million and $195 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 totaled $895 million at June 30, 2010, compared with $855 million and $891 million at June 30, 2009 and March 31, 2010, respectively. 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 carry-over of the acquired entity's allowance for credit losses. Excluding amounts related to loans obtained in 2009 acquisition transactions, the allowance-to-legacy loan ratio was 1.86% at the two most recent quarter-ends, compared with 1.76% at June 30, 2009.

Noninterest Income and Expense. Noninterest income totaled $274 million in the second 2010 quarter, compared with $272 million and $258 million in the second quarter of 2009 and the first quarter of 2010, respectively. Reflected in those amounts were losses from investment securities of $22 million, $24 million and $26 million, each predominantly due to other-than-temporary impairment charges. During the recent quarter, such charges related to a $12 million write-down of American Depositary Shares of Allied Irish Banks, p.l.c., which were obtained in M&T's acquisition of Allfirst Financial Inc. in 2003 and certain of M&T's holdings of privately issued collateralized mortgage obligations and collateralized debt obligations backed by pooled trust preferred securities, aggregating $10 million. The impairment charges in the second quarter of 2009 and in the initial 2010 quarter related to privately issued collateralized mortgage obligations. Because the impaired investment securities were previously reflected at fair value on the consolidated balance sheet, the impairment charges did not reduce stockholders' equity. Excluding gains and losses from investment securities, noninterest income in the second quarter of 2010 aggregated $296 million, equal to the year-earlier quarter but up 4% from $284 million in the initial quarter of 2010. Higher service charges on deposit accounts during the recent quarter as compared with the second quarter of 2009, largely due to the impact of the 2009 acquisitions, were offset by declines in mortgage banking revenues, trading account and foreign exchange gains, and losses at Bayview Lending Group. As compared with the first quarter of 2010, the recent quarter's improvement resulted from higher service charges on deposit accounts and mortgage banking revenues.

Noninterest expense in the second quarter of 2010 aggregated $476 million, compared with $564 million in the year-earlier quarter and $489 million in the first quarter of 2010. 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 those expenses, noninterest operating expenses were $461 million in the recent quarter, compared with $482 million in the second quarter of 2009 and $473 million in 2010's initial quarter. The decline in such expenses from the year-earlier period was largely attributable to a special assessment levied on insured financial institutions by the FDIC in the second quarter of 2009, which in M&T's case amounted to approximately $33 million, partially offset by a $13 million reduction of the allowance for impairment of capitalized residential mortgage servicing rights in the second quarter of 2009. In comparison, a $2 million addition to the impairment allowance was recognized during the recent quarter. After excluding the impact of the FDIC special assessment and the change in the allowance for impairment of capitalized residential mortgage servicing rights, noninterest operating expenses in the recent quarter were $3 million lower than in the year-earlier quarter. The lower level of noninterest operating expenses in the recent quarter as compared with 2010's initial quarter was largely the result of a decline in personnel costs from seasonally higher first quarter stock-based compensation, payroll-related taxes and contributions for retirement savings plan benefits associated with incentive compensation payments.

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 associated with bank investment securities and merger-related expenses and gains), measures the relationship of operating expenses to revenues. M&T's efficiency ratio improved to 53.1% in the second quarter of 2010 from 60.0% in the year-earlier period (56.0% excluding the FDIC special assessment) and 55.9% in the first quarter of 2010.

Balance Sheet. M&T had total assets of $68.2 billion at June 30, 2010, compared with $69.9 billion at June 30, 2009. Loans and leases, net of unearned discount, were $51.1 billion at the recent quarter-end, compared with $52.7 billion a year earlier. Total deposits rose to $47.5 billion at June 30, 2010 from $46.8 billion at June 30, 2009. Reflecting a $1.6 billion or 13% rise in noninterest-bearing deposits, domestic office deposits increased $1.3 billion, or 3%, to $47.0 billion at the most recent quarter-end from $45.7 billion at June 30, 2009.

Total stockholders' equity increased to $8.1 billion at June 30, 2010 from $7.4 billion a year earlier, representing 11.89% of total assets at the recent quarter-end and 10.58% a year earlier. Common stockholders' equity was $7.4 billion, or $61.77 per share, at June 30, 2010, compared with $6.7 billion, or $56.51 per share, at June 30, 2009. Tangible equity per common share rose to $31.15 at the recent quarter-end from $25.17 a year earlier. In the calculation of tangible equity per common share, common 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 at each of June 30, 2010 and 2009. M&T's tangible common equity to tangible assets ratio was 5.75% at June 30, 2010, compared with 4.49% and 5.43% at June 30, 2009 and March 31, 2010, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 10:30 a.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# 87561125. The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Friday, July 23, 2010 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to ID# 87561125. The event will also be archived and available by 6:00 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 capital requirements; 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 ended
  Amounts in thousands,                            June 30
                                                   -------
   except per share                           2010             2009  Change
                                              ----             ----  ------

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

  Net income                              $188,749           51,188     269%
  Net income available to common
   equity                                  176,088           40,964     330

  Per common share:
    Basic earnings                           $1.47              .36     308%
    Diluted earnings                          1.46              .36     306
    Cash dividends                            $.70              .70

  Common shares outstanding:
    Average - diluted (1)                  118,878          113,521       5%
    Period end (2)                         119,161          118,012       1

  Return on (annualized):
    Average total assets                      1.11%             .31%
    Average common stockholders' equity       9.67%            2.53%

  Taxable-equivalent net interest
   income                                 $573,332          506,781      13%

  Yield on average earning assets             4.63%            4.62%
  Cost of interest-bearing
   liabilities                                1.04%            1.47%
  Net interest spread                         3.59%            3.15%
  Contribution of interest-free funds          .25%             .28%
  Net interest margin                         3.84%            3.43%

  Net charge-offs to average total
    net loans (annualized)                     .64%            1.09%

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

  Net operating income                    $197,752          100,805      96%
  Diluted net operating earnings per
   common share                               1.53              .79      94
  Return on (annualized):
    Average tangible assets                   1.23%             .64%
    Average tangible common equity           20.36%           12.08%
  Efficiency ratio                           53.06%           60.03%



                                            Six months ended
  Amounts in thousands,                          June 30
                                                 -------
   except per share                           2010          2009  Change
                                              ----          ----  ------

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

  Net income                              $339,704       115,409     194%
  Net income available to common
   equity                                  314,429        96,286     227

  Per common share:
    Basic earnings                           $2.63           .85     209%
    Diluted earnings                          2.61           .85     207
    Cash dividends                           $1.40          1.40

  Common shares outstanding:
    Average - diluted (1)                  118,569       111,988       6%
    Period end (2)                         119,161       118,012       1

  Return on (annualized):
    Average total assets                      1.00%          .35%
    Average common stockholders' equity       8.78%         3.06%

  Taxable-equivalent net interest
   income                               $1,135,589       959,521      18%

  Yield on average earning assets             4.61%         4.63%
  Cost of interest-bearing
   liabilities                                1.04%         1.61%
  Net interest spread                         3.57%         3.02%
  Contribution of interest-free funds          .24%          .29%
  Net interest margin                         3.81%         3.31%

  Net charge-offs to average total
    net loans (annualized)                     .69%          .96%

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

  Net operating income                    $358,705       175,839     104%
  Diluted net operating earnings per
   common share                               2.77          1.39      99
  Return on (annualized):
    Average tangible assets                   1.11%         0.57%
    Average tangible common equity           18.89%        10.76%
  Efficiency ratio                           54.45%        59.39%




                                                 At June 30
                                                 ----------
  Loan quality                                2010             2009  Change
  ------------                                ----             ----  ------

  Nonaccrual loans                      $1,090,135        1,111,423      -2%
  Real estate and other foreclosed
   assets                                  192,631           90,461     113%
    Total nonperforming assets          $1,282,766        1,201,884       7%
                                        ==========        =========

  Accruing loans past due 90 days or
   more                                   $203,081          155,125      31%

  Renegotiated loans                      $228,847          170,950      34%

  Government guaranteed loans
   included in totals
    above:
    Nonaccrual loans                       $40,271           38,075       6%
    Accruing loans past due 90 days or
     more                                  187,682          143,886      30%

  Purchased impaired loans (4):
    Outstanding customer balance          $130,808          170,400     -23%
    Carrying amount                         61,524           97,730     -37%

  Nonaccrual loans to total net loans         2.13%            2.11%

  Allowance for credit losses to:
    Legacy loans                              1.86%            1.76%
    Total loans                               1.75%            1.62%


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

                                        Three months ended
                                        ------------------
  Amounts in thousands,                   June 30,       March 31,
   except per share                        2010           2010
                                           ----           ----

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

  Net income                              $188,749        150,955
  Net income available to common
   equity                                  176,088        138,341

  Per common share:
    Basic earnings                           $1.47           1.16
    Diluted earnings                          1.46           1.15
    Cash dividends                            $.70            .70

  Common shares outstanding:
    Average - diluted (1)                  118,878        118,256
    Period end (2)                         119,161        118,823

  Return on (annualized):
    Average total assets                      1.11%           .89%
    Average common stockholders' equity       9.67%          7.86%

  Taxable-equivalent net interest
   income                                 $573,332        562,257

  Yield on average earning assets             4.63%          4.59%
  Cost of interest-bearing liabilities        1.04%          1.04%
  Net interest spread                         3.59%          3.55%
  Contribution of interest-free funds          .25%           .23%
  Net interest margin                         3.84%          3.78%

  Net charge-offs to average total
    net loans (annualized)                     .64%           .74%

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

  Net operating income                    $197,752        160,953
  Diluted net operating earnings per
   common share                               1.53           1.23
  Return on (annualized):
    Average tangible assets                   1.23%          1.00%
    Average tangible common equity           20.36%         17.34%
  Efficiency ratio                           53.06%         55.88%




                                           June 30,     March 31,
  Loan quality                              2010           2010
  ------------                              ----           ----

  Nonaccrual loans                      $1,090,135      1,339,992
  Real estate and other foreclosed
   assets                                  192,631         95,362
    Total nonperforming assets          $1,282,766      1,435,354
                                        ==========      =========

  Accruing loans past due 90 days or
   more                                   $203,081        203,443

  Renegotiated loans                      $228,847        220,885

  Government guaranteed loans included
   in totals
    above:
    Nonaccrual loans                       $40,271         37,048
    Accruing loans past due 90 days or
     more                                  187,682        194,523

  Purchased impaired loans (4):
    Outstanding customer balance          $130,808        148,686
    Carrying amount                         61,524         73,890

  Nonaccrual loans to total net loans         2.13%          2.60%

  Allowance for credit losses to:
    Legacy loans                              1.86%          1.86%
    Total loans                               1.75%          1.73%





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

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

  Net income                 136,818        127,664         51,188
  Net income available
   to common equity          124,251        115,143         40,964

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

  Common shares
   outstanding:
    Average -diluted (1)     117,672        117,547        113,521
    Period end (2)           118,298        118,156        118,012

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

  Taxable-equivalent
   net interest income       564,606        553,450        506,781

  Yield on average
   earning assets               4.58%          4.60%          4.62%
  Cost of interest-
   bearing liabilities          1.13%          1.26%          1.47%
  Net interest spread           3.45%          3.34%          3.15%
  Contribution of
   interest-free funds           .26%           .27%           .28%
  Net interest margin           3.71%          3.61%          3.43%

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

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

  Net operating income       150,776        128,761        100,805
  Diluted net operating
   earnings per common
   share                        1.16            .98            .79
  Return on
   (annualized):
    Average tangible
     assets                      .92%           .78%           .64%
    Average tangible
     common equity             16.73%         14.87%         12.08%
  Efficiency ratio             52.69%         55.21%         60.03%




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

  Nonaccrual loans         1,331,702      1,228,341      1,111,423
  Real estate and other
   foreclosed assets          94,604         84,676         90,461
    Total nonperforming
     assets                1,426,306      1,313,017      1,201,884
                           =========      =========      =========

  Accruing loans past
   due 90 days or more       208,080        182,750        155,125

  Renegotiated loans         212,548        190,917        170,950

  Government guaranteed
   loans included in
   totals
    above:
    Nonaccrual loans          38,579         38,590         38,075
    Accruing loans past
     due 90 days or more     193,495        172,701        143,886

  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%

  Allowance for credit
   losses to:
    Legacy loans                1.83%          1.81%          1.76%
    Total loans                 1.69%          1.66%          1.62%




  (1)  Includes common stock equivalents.
  (2)  Includes common stock issuable under deferred compensation plans.
  (3)  Excludes amortization and balances related to goodwill and core
       deposit and other intangible assets and merger-related 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
                                                   June 30
                                                   -------
  Dollars in thousands                            2010          2009  Change
                                                    --            --  ------

  Interest income                             $684,784       677,423    1%
  Interest expense                             117,557       175,856  -33
                                               -------       -------
  Net interest income                          567,227       501,567   13
  Provision for credit losses                   85,000       147,000  -42
                                                ------       -------
  Net interest income after
     provision for credit losses               482,227       354,567   36
  Other income
       Mortgage banking revenues                47,084        52,983  -11
       Service charges on deposit accounts     128,976       112,479   15
       Trust income                             30,169        32,442   -7
       Brokerage services income                12,788        13,493   -5
       Trading account and foreign exchange
        gains                                    3,797         7,543  -50
       Gain on bank investment securities           10           292    -
       Other-than-temporary impairment losses
          recognized in earnings               (22,380)      (24,769)   -
       Equity in earnings of Bayview Lending
        Group LLC                               (6,179)         (207)   -
       Other revenues from operations           79,292        77,393    2
                                                ------        ------
            Total other income                 273,557       271,649    1

  Other expense
       Salaries and employee benefits          245,861       249,952   -2
       Equipment and net occupancy              55,431        51,321    8
       Printing, postage and supplies            8,549        11,554  -26
       Amortization of core deposit and other
          intangible assets                     14,833        15,231   -3
       FDIC assessments                         21,608        49,637  -56
       Other costs of operations               129,786       186,015  -30
                                               -------       -------
            Total other expense                476,068       563,710  -16
  Income before income taxes                   279,716        62,506  348
  Applicable income taxes                       90,967        11,318  704
                                                ------        ------
  Net income                                  $188,749        51,188  269%
                                              ========        ======





                                            Six months ended
                                                 June 30
                                                 -------
  Dollars in thousands                        2010             2009  Change
                                                --               --  ------

  Interest income                       $1,361,170        1,331,935    2%
  Interest expense                         237,609          382,561  -38
                                           -------          -------
  Net interest income                    1,123,561          949,374   18
  Provision for credit losses              190,000          305,000  -38
                                           -------          -------
  Net interest income after
     provision for credit losses           933,561          644,374   45
  Other income
       Mortgage banking revenues            88,560          109,216  -19
       Service charges on deposit
        accounts                           249,271          213,508   17
       Trust income                         61,097           67,322   -9
       Brokerage services income            25,894           28,886  -10
       Trading account and foreign
        exchange gains                       8,496            8,978   -5
       Gain on bank investment
        securities                             469              867    -
       Other-than-temporary
        impairment losses
          recognized in earnings           (49,182)         (56,968)   -
       Equity in earnings of Bayview
        Lending Group LLC                  (11,893)          (4,351)   -
       Other revenues from operations      158,551          136,532   16
                                           -------          -------
            Total other income             531,263          503,990    5

  Other expense
       Salaries and employee benefits      509,907          499,344    2
       Equipment and net occupancy         110,832           99,493   11
       Printing, postage and supplies       17,592           20,649  -15
       Amortization of core deposit and
        other
          intangible assets                 31,308           30,601    2
       FDIC assessments                     42,956           55,493  -23
       Other costs of operations           252,835          296,476  -15
                                           -------          -------
            Total other expense            965,430        1,002,056   -4
  Income before income taxes               499,394          146,308  241
  Applicable income taxes                  159,690           30,899  417
                                           -------           ------
  Net income                              $339,704          115,409  194%
                                          ========          =======




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

                                   Three months ended
                                   ------------------
                                                          December
                                    June 30,     March 31,            31,
  Dollars in thousands                     2010       2010         2009
                                            --        ----        ----

  Interest income                  $684,784     676,386    692,669
  Interest expense                  117,557     120,052    133,950
                                    -------     -------    -------
  Net interest income               567,227     556,334    558,719
  Provision for credit losses        85,000     105,000    145,000
                                     ------     -------    -------
  Net interest income after
     provision for credit losses    482,227     451,334    413,719
  Other income
       Mortgage banking revenues     47,084      41,476     50,176
       Service charges on deposit
        accounts                    128,976     120,295    127,185
       Trust income                  30,169      30,928     29,660
       Brokerage services income     12,788      13,106     14,396
       Trading account and foreign
        exchange gains                3,797       4,699      6,669
       Gain (loss) on bank
        investment securities            10         459        354
       Other-than-temporary
        impairment losses
          recognized in earnings    (22,380)    (26,802)   (34,296)
       Equity in earnings of
        Bayview Lending Group LLC    (6,179)     (5,714)   (10,635)
       Other revenues from
        operations                   79,292      79,259     82,381
                                     ------      ------     ------
            Total other income      273,557     257,706    265,890
  Other expense
       Salaries and employee
        benefits                    245,861     264,046    247,080
       Equipment and net occupancy   55,431      55,401     53,703
       Printing, postage and
        supplies                      8,549       9,043      9,338
       Amortization of core
        deposit and other
          intangible assets          14,833      16,475     16,730
       FDIC assessments              21,608      21,348     19,902
       Other costs of operations    129,786     123,049    131,698
                                    -------     -------    -------
            Total other expense     476,068     489,362    478,451
  Income before income taxes        279,716     219,678    201,158
  Applicable income taxes            90,967      68,723     64,340
                                     ------      ------     ------
  Net income                       $188,749     150,955    136,818
                                   ========     =======    =======





                                        Three months ended
                                        ------------------
                                             September     June
                                                 30,         30,
  Dollars in thousands                              2009      2009
                                                    ----      ----

  Interest income                           700,593        677,423
  Interest expense                          152,938        175,856
                                            -------        -------
  Net interest income                       547,655        501,567
  Provision for credit losses               154,000        147,000
                                            -------        -------
  Net interest income after
     provision for credit losses            393,655        354,567
  Other income
       Mortgage banking revenues             48,169         52,983
       Service charges on deposit
        accounts                            128,502        112,479
       Trust income                          31,586         32,442
       Brokerage services income             14,329         13,493
       Trading account and foreign
        exchange gains                        7,478          7,543
       Gain (loss) on bank investment
        securities                              (56)           292
       Other-than-temporary impairment
        losses
          recognized in earnings            (47,033)       (24,769)
       Equity in earnings of Bayview
        Lending Group LLC                   (10,912)          (207)
       Other revenues from operations       106,163         77,393
                                            -------         ------
            Total other income              278,226        271,649
  Other expense
       Salaries and employee benefits       255,449        249,952
       Equipment and net occupancy           58,195         51,321
       Printing, postage and supplies         8,229         11,554
       Amortization of core deposit and
        other
          intangible assets                  16,924         15,231
       FDIC assessments                      21,124         49,637
       Other costs of operations            140,135        186,015
                                            -------        -------
            Total other expense             500,056        563,710
  Income before income taxes                171,825         62,506
  Applicable income taxes                    44,161         11,318
                                             ------         ------
  Net income                                127,664         51,188
                                            =======         ======






  M&T BANK CORPORATION
  Condensed Consolidated Balance Sheet


                                          June 30
                                          -------
  Dollars in thousands                2010              2009 Change
                                        --                -- ------

  ASSETS
  Cash and due from banks       $1,045,886         1,148,428  -9%
  Interest-bearing
   deposits at banks               117,826            59,950  97
  Federal funds sold and
   agreements
    to resell securities            10,000             2,300 335
  Trading account assets           487,692           495,324  -2
  Investment securities          8,097,572         8,155,434  -1
  Loans and leases:
     Commercial, financial,
      etc                       13,017,598        14,180,609  -8
     Real estate -commercial    20,612,905        20,787,198  -1
     Real estate -consumer       5,729,126         5,471,775   5
     Consumer                   11,701,657        12,275,062  -5
                                ----------        ----------
       Total loans and leases,
        net of unearned
        discount                51,061,286        52,714,644  -3
          Less: allowance for
           credit losses           894,667           855,365   5
                                   -------           -------
    Net loans and leases        50,166,619        51,859,279  -3
  Goodwill                       3,524,625         3,524,625   -
  Core deposit and other
   intangible assets               152,712           216,072 -29
  Other assets                   4,550,684         4,451,805   2
                                 ---------         ---------
    Total assets               $68,153,616        69,913,217  -3%
                               ===========        ==========
  LIABILITIES AND
   STOCKHOLDERS' EQUITY
  Noninterest-bearing
   deposits at U.S.
   offices                     $13,960,723        12,403,999  13%
  Other deposits at U.S.
   offices                      33,010,520        33,265,704  -1
  Deposits at foreign
   office                          551,428         1,085,004 -49
                                   -------         ---------
    Total deposits              47,522,671        46,754,707   2
  Short-term borrowings          2,158,957         2,951,149 -27
  Accrued interest and
   other liabilities             1,114,615         1,238,959 -10
  Long-term borrowings           9,255,529        11,568,238 -20
                                 ---------        ----------
    Total liabilities           60,051,772        62,513,053  -4
  Stockholders' equity:
     Preferred                     735,350           725,472   1
     Common (1)                  7,366,494         6,674,692  10
                                 ---------         ---------
       Total stockholders'
        equity                   8,101,844         7,400,164   9
                                 ---------         ---------
    Total liabilities and
     stockholders' equity      $68,153,616        69,913,217  -3%
                               ===========        ==========

  (1)  Reflects accumulated other comprehensive loss, net of applicable
  income tax effect, of $197.2 million
         at June 30, 2010 and $580.8 million at June 30, 2009.







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


                                                            
                               June 30,       March 31,   December 31,
  Dollars in
   thousands                     2010           2010          2009
                                 ----           ----          ----

  ASSETS

  Cash and due from
   banks                      $1,045,886      1,033,269      1,226,223

  Interest-bearing
   deposits at banks             117,826        121,305        133,335

  Federal funds sold
   and agreements
    to resell
     securities                   10,000         10,400         20,119

  Trading account
   assets                        487,692        403,476        386,984

  Investment
   securities                  8,097,572      8,104,646      7,780,609

  Loans and leases:

     Commercial,
      financial, etc          13,017,598     13,220,181     13,479,447
     Real estate -
      commercial              20,612,905     20,724,118     20,949,931
     Real estate -
      consumer                 5,729,126      5,664,159      5,463,463
     Consumer                 11,701,657     11,835,583     12,043,845
                              ----------     ----------     ----------
       Total loans and
        leases, net of
        unearned discount     51,061,286     51,444,041     51,936,686
          Less: allowance
           for credit losses     894,667        891,265        878,022
                                 -------        -------        -------

    Net loans and
     leases                   50,166,619     50,552,776     51,058,664

  Goodwill                     3,524,625      3,524,625      3,524,625

  Core deposit and
   other intangible
   assets                        152,712        167,545        182,418

  Other assets                 4,550,684      4,521,180      4,567,422
                               ---------      ---------      ---------

    Total assets             $68,153,616     68,439,222     68,880,399
                             ===========     ==========     ==========


  LIABILITIES AND
   STOCKHOLDERS'
   EQUITY

  Noninterest-
   bearing deposits
   at U.S. offices           $13,960,723     13,622,819     13,794,636

  Other deposits at
   U.S. office                33,010,520     33,125,761     32,604,764

  Deposits at
   foreign offices               551,428        789,825      1,050,438
                                 -------        -------      ---------

    Total deposits            47,522,671     47,538,405     47,449,838

  Short-term
   borrowings                  2,158,957      1,870,763      2,442,582

  Accrued interest
   and other
   liabilities                 1,114,615      1,048,473        995,056

  Long-term
   borrowings                  9,255,529     10,065,894     10,240,016
                               ---------     ----------     ----------

    Total liabilities         60,051,772     60,523,535     61,127,492

  Stockholders'
   equity:

     Preferred                   735,350        732,769        730,235
     Common (1)                7,366,494      7,182,918      7,022,672
                               ---------      ---------      ---------

       Total
        stockholders'
        equity                 8,101,844      7,915,687      7,752,907
                               ---------      ---------      ---------

    Total liabilities
     and stockholders'
     equity                  $68,153,616     68,439,222     68,880,399
                             ===========     ==========     ==========


                                            September
                                                30,     June 30,
  Dollars in thousands                         2009       2009
                                               ----       ----

  ASSETS

  Cash and due from banks                    1,356,508  1,148,428

  Interest-bearing deposits at
   banks                                        54,443     59,950

  Federal funds sold and agreements
    to resell securities                        17,206      2,300

  Trading account assets                       497,064    495,324

  Investment securities                      7,634,262  8,155,434

  Loans and leases:

     Commercial, financial, etc             13,517,538 14,180,609
     Real estate - commercial               21,007,376 20,787,198
     Real estate - consumer                  5,427,260  5,471,775
     Consumer                               12,251,598 12,275,062
                                            ---------- ----------
       Total loans and leases, net of
        unearned discount                   52,203,772 52,714,644
          Less: allowance for credit losses    867,874    855,365
                                                                -

    Net loans and leases                    51,335,898 51,859,279

  Goodwill                                   3,524,625  3,524,625

  Core deposit and other intangible
   assets                                      199,148    216,072

  Other assets                               4,378,296  4,451,805
                                             ---------  ---------

    Total assets                            68,997,450 69,913,217
                                            ========== ==========


  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Noninterest-bearing deposits at
   U.S. offices                             12,730,083 12,403,999

  Other deposits at U.S. offices            32,813,698 33,265,704

  Deposits at foreign office                 1,318,070  1,085,004
                                             ---------  ---------

    Total deposits                          46,861,851 46,754,707

  Short-term borrowings                      2,927,268  2,951,149

  Accrued interest and other
   liabilities                               1,241,576  1,238,959

  Long-term borrowings                      10,354,392 11,568,238
                                            ---------- ----------

    Total liabilities                       61,385,087 62,513,053

  Stockholders' equity:

     Preferred                                 727,748    725,472
     Common (1)                              6,884,615  6,674,692
                                             ---------  ---------

       Total stockholders' equity            7,612,363  7,400,164
                                             ---------  ---------

    Total liabilities and
     stockholders' equity                   68,997,450 69,913,217
                                            ========== ==========


  (1)  Reflects accumulated other comprehensive loss, net of applicable
  income tax effect, of $197.2 million at June 30, 2010, $255.2
  million at March 31, 2010, $336.0 million at  December 31, 2009, $419.3
  million at September 30 2009 and $580.8 million at June 30, 2009.






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


                              Three months ended
                              ------------------
                                                      
                          June 30,         June 30,      March 31,
  Dollars in millions       2010            2009            2010
                            ----            ----            ----
                         Balance Rate   Balance  Rate   Balance Rate
                         ------- ----   -------  ----   ------- ----
  ASSETS

  Interest-bearing
   deposits at banks         $81   .02%      42    .05%     127   .02%

  Federal funds sold
   and agreements
    to resell
     securities               10   .41       73    .23       24   .22

  Trading account
   assets                     66   .96      120    .77       60   .80

  Investment
   securities              8,376  4.27    8,508   4.90    8,172  4.44

  Loans and leases,
   net of unearned
   discount
    Commercial,
     financial, etc       13,096  4.03   14,067   3.76   13,408  3.88
    Real estate -
     commercial           20,759  4.64   19,719   4.46   20,867  4.48
    Real estate -
     consumer              5,653  5.35    5,262   5.40    5,742  5.31
    Consumer              11,770  5.24   11,506   5.42   11,931  5.26
       Total loans and
        leases, net       51,278  4.71   50,554   4.59   51,948  4.63
                          ------         ------          ------

    Total earning
     assets               59,811  4.63   59,297   4.62   60,331  4.59

  Goodwill                 3,525          3,326           3,525

  Core deposit and
   other intangible
   assets                    160            188             176

  Other assets             4,838          4,173           4,851
                           -----          -----           -----

    Total assets         $68,334         66,984          68,883
                         =======         ======          ======



  LIABILITIES AND
   STOCKHOLDERS'
   EQUITY

  Interest-bearing
   deposits
    NOW accounts            $619   .14      515    .19      585   .14
    Savings deposits      25,942   .33   22,480    .47   25,068   .33
    Time deposits          6,789  1.55    8,858   2.52    7,210  1.66
    Deposits at foreign
     office                  972   .16    1,460    .16    1,237   .11
       Total interest-
        bearing deposits  34,322   .56   33,313   1.00   34,100   .60
                          ------         ------          ------

  Short-term
   borrowings              1,763   .17    3,211    .25    2,367   .15
  Long-term
   borrowings              9,454  2.91   11,482   3.18   10,160  2.74
                           -----         ------          ------

  Total interest-
   bearing
   liabilities            45,539  1.04   48,006   1.47   46,627  1.04

  Noninterest-
   bearing deposits       13,610         10,533          13,294

  Other liabilities        1,149          1,318           1,094
                           -----          -----           -----

    Total liabilities     60,298         59,857          61,015

  Stockholders'
   equity                  8,036          7,127           7,868
                           -----          -----           -----

    Total liabilities
     and stockholders'
     equity              $68,334         66,984          68,883
                         =======         ======          ======


  Net interest spread       3.59            3.15           3.55
  Contribution of
   interest-free
   funds                     .25             .28            .23
  Net interest margin       3.84%           3.43%          3.78%


                                         Change in balance
                                         June 30, 2010 from
                                         ------------------
                                                    
  Dollars in millions               June 30,        March 31,
                                      2009            2010
                                      ----            ----
  ASSETS

  Interest-bearing deposits at
   banks                             94%             -36%

  Federal funds sold and
   agreements
    to resell securities            -86              -58

  Trading account assets            -45               11

  Investment securities              -2                2

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

    Total earning assets              1               -1

  Goodwill                            6                -

  Core deposit and other
   intangible assets                -15               -9

  Other assets                       16                -

    Total assets                      2%              -1%



  LIABILITIES AND STOCKHOLDERS'
   EQUITY

  Interest-bearing deposits
    NOW accounts                     20%               6%
    Savings deposits                 15                3
    Time deposits                   -23               -6
    Deposits at foreign office      -33              -21
       Total interest-bearing
        deposits                      3                1

  Short-term borrowings             -45              -26
  Long-term borrowings              -18               -7

  Total interest-bearing
   liabilities                       -5               -2

  Noninterest-bearing deposits       29                2

  Other liabilities                 -13                5

    Total liabilities                 1               -1

  Stockholders' equity               13                2

    Total liabilities and
     stockholders' equity             2%              -1%


  Net interest spread
  Contribution of interest-free
   funds
  Net interest margin



                                 Six months ended
                                     June 30
                                      -------
                                                              Change
  Dollars in millions         2010                2009         in
                         Balance Rate          Balance Rate   balance
                         ------- ----          ------- ----   -------
  ASSETS

  Interest-bearing
   deposits at banks        $104   .02%             31   .08%      236%

  Federal funds sold
   and agreements
    to resell
     securities               17   .28              87   .23       -81

  Trading account
   assets                     63   .88              97   .73       -35

  Investment
   securities              8,274  4.35           8,499  4.86        -3

  Loans and leases,
   net of unearned
   discount
    Commercial,
     financial, etc       13,251  3.95          14,049  3.75        -6
    Real estate -
     commercial           20,813  4.56          19,260  4.43         8
    Real estate -
     consumer              5,697  5.33           5,148  5.49        11
    Consumer              11,850  5.25          11,237  5.52         5
       Total loans and
        leases, net       51,611  4.67          49,694  4.61         4
                          ------                ------

    Total earning
     assets               60,069  4.61          58,408  4.63         3

  Goodwill                 3,525                 3,259               8

  Core deposit and
   other intangible
   assets                    168                   182              -8

  Other assets             4,845                 4,032              20
                           -----                 -----

    Total assets         $68,607                65,881               4%
                         =======                ======



  LIABILITIES AND
   STOCKHOLDERS'
   EQUITY

  Interest-bearing
   deposits
    NOW accounts            $602   .14             525   .22        15%
    Savings deposits      25,508   .33          21,845   .63        17
    Time deposits          6,998  1.60           8,789  2.66       -20
    Deposits at foreign
     office                1,104   .13           1,964   .16       -44
       Total interest-
        bearing deposits  34,212   .58          33,123  1.14         3
                          ------                ------

  Short-term
   borrowings              2,063   .16           3,344   .26       -38
  Long-term
   borrowings              9,805  2.82          11,562  3.34       -15
                           -----                ------

  Total interest-
   bearing
   liabilities            46,080  1.04          48,029  1.61        -4

  Noninterest-
   bearing deposits       13,453                 9,549              41

  Other liabilities        1,121                 1,349             -17
                           -----                 -----

    Total liabilities     60,654                58,927               3

  Stockholders'
   equity                  7,953                 6,954              14
                           -----                 -----

    Total liabilities
     and stockholders'
     equity              $68,607                65,881               4%
                         =======                ======


  Net interest spread             3.57                  3.02
  Contribution of
   interest-free
   funds                           .24                   .29
  Net interest margin             3.81%                 3.31%





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

                                                  Three months ended
                                                        June 30
                                                        -------
                                                  2010                 2009
                                                  ----                 ----
  Income statement data
  ---------------------
  In thousands, except per share
  Net income
  Net income                                  $188,749               51,188
  Amortization of core deposit and
   other
    intangible assets (1)                        9,003                9,247
  Merger-related expenses (1)                        -               40,370
    Net operating income                      $197,752              100,805
                                              ========              =======
  Earnings per common share
  Diluted earnings per common share              $1.46                  .36
  Amortization of core deposit and
   other
    intangible assets (1)                          .07                  .08
  Merger-related expenses (1)                        -                  .35
    Diluted net operating earnings per
     common share                                $1.53                  .79
                                                 =====                  ===
  Other expense
  Other expense                               $476,068              563,710
  Amortization of core deposit and
   other
    intangible assets                          (14,833)             (15,231)
  Merger-related expenses                            -              (66,457)
    Noninterest operating expense             $461,235              482,022
                                              ========              =======
  Merger-related expenses
  Salaries and employee benefits          $          -                8,768
  Equipment and net occupancy                        -                  581
  Printing, postage and supplies                     -                2,514
  Other costs of operations                          -               54,594
    Total                                 $          -               66,457
                                                   ===               ======


  Balance sheet data
  ------------------
  In millions
  Average assets
  Average assets                               $68,334               66,984
  Goodwill                                      (3,525)              (3,326)
  Core deposit and other intangible
   assets                                         (160)                (188)
  Deferred taxes                                    30                   30
                                                   ---                  ---
    Average tangible assets                    $64,679               63,500
                                               =======               ======
  Average common equity
  Average total equity                          $8,036                7,127
  Preferred stock                                 (734)                (636)
    Average common equity                        7,302                6,491
  Goodwill                                      (3,525)              (3,326)
  Core deposit and other intangible
   assets                                         (160)                (188)
  Deferred taxes                                    30                   30
                                                   ---                  ---
    Average tangible common equity              $3,647                3,007
                                                ======                =====

  At end of quarter
  Total assets
  Total assets                                 $68,154               69,913
  Goodwill                                      (3,525)              (3,525)
  Core deposit and other intangible
   assets                                         (152)                (216)
  Deferred taxes                                    28                   43
    Total tangible assets                      $64,505               66,215
                                               =======               ======
  Total common equity
  Total equity                                  $8,102                7,400
  Preferred stock                                 (735)                (725)
  Undeclared dividends -preferred
   stock                                            (7)                  (6)
    Common equity, net of undeclared
      preferred dividends                        7,360                6,669
  Goodwill                                      (3,525)              (3,525)
  Core deposit and other intangible
   assets                                         (152)                (216)
  Deferred taxes                                    28                   43
    Total tangible common equity                $3,711                2,971
                                                ======                =====





                                                  Six months ended
                                                       June 30
                                                       -------
                                                  2010                2009
                                                  ----                ----
  Income statement data
  ---------------------
  In thousands, except per share
  Net income
  Net income                                  $339,704             115,409
  Amortization of core deposit and
   other
    intangible assets (1)                       19,001              18,584
  Merger-related expenses (1)                        -              41,846
    Net operating income                      $358,705             175,839
                                              ========             =======
  Earnings per common share
  Diluted earnings per common share              $2.61                 .85
  Amortization of core deposit and
   other
    intangible assets (1)                          .16                 .17
  Merger-related expenses (1)                        -                 .37
    Diluted net operating earnings per
     common share                                $2.77                1.39
                                                 =====                ====
  Other expense
  Other expense                               $965,430           1,002,056
  Amortization of core deposit and
   other
    intangible assets                          (31,308)            (30,601)
  Merger-related expenses                            -             (68,883)
    Noninterest operating expense             $934,122             902,572
                                              ========             =======
  Merger-related expenses
  Salaries and employee benefits          $          -               8,779
  Equipment and net occupancy                        -                 585
  Printing, postage and supplies                     -               2,815
  Other costs of operations                          -              56,704
    Total                                 $          -              68,883
                                                   ===              ======


  Balance sheet data
  ------------------
  In millions
  Average assets
  Average assets                               $68,607              65,881
  Goodwill                                      (3,525)             (3,259)
  Core deposit and other intangible
   assets                                         (168)               (182)
  Deferred taxes                                    32                  26
                                                   ---                 ---
    Average tangible assets                    $64,946              62,466
                                               =======              ======
  Average common equity
  Average total equity                          $7,953               6,954
  Preferred stock                                 (733)               (602)
    Average common equity                        7,220               6,352
  Goodwill                                      (3,525)             (3,259)
  Core deposit and other intangible
   assets                                         (168)               (182)
  Deferred taxes                                    32                  26
                                                   ---                 ---
    Average tangible common equity              $3,559               2,937
                                                ======               =====

  At end of quarter
  Total assets
  Total assets                                 $68,154              69,913
  Goodwill                                      (3,525)             (3,525)
  Core deposit and other intangible
   assets                                         (152)               (216)
  Deferred taxes                                    28                  43
    Total tangible assets                      $64,505              66,215
                                               =======              ======
  Total common equity
  Total equity                                  $8,102               7,400
  Preferred stock                                 (735)               (725)
  Undeclared dividends -preferred
   stock                                            (7)                 (6)
    Common equity, net of undeclared
      preferred dividends                        7,360               6,669
  Goodwill                                      (3,525)             (3,525)
  Core deposit and other intangible
   assets                                         (152)               (216)
  Deferred taxes                                    28                  43
    Total tangible common equity                $3,711               2,971
                                                ======               =====

  (1) After any related tax effect.






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

                                    Three months ended
                                    ------------------
                              June     March  December September   June
                               30,      31,       31,      30,      30,
                                2010     2010      2009     2009     2009
                                ----     ----      ----     ----     ----
  Income statement
   data
  ----------------
  In thousands,
   except per share
  Net income
  Net income                $188,749  150,955   136,818  127,664   51,188
  Amortization of
   core deposit and
   other
    intangible assets
     (1)                       9,003    9,998    10,152   10,270    9,247
  Merger-related
   gain (1)                        -        -         -  (17,684)       -
  Merger-related
   expenses (1)                    -        -     3,806    8,511   40,370
    Net operating
     income                 $197,752  160,953   150,776  128,761  100,805
                            ========  =======   =======  =======  =======
  Earnings per common
   share
  Diluted earnings
   per common share            $1.46     1.15      1.04      .97      .36
  Amortization of
   core deposit and
   other
    intangible assets
     (1)                         .07      .08       .09      .09      .08
  Merger-related
   gain (1)                        -        -         -     (.15)       -
  Merger-related
   expenses (1)                    -        -       .03      .07      .35
    Diluted net
     operating earnings
     per common share          $1.53     1.23      1.16      .98      .79
                               =====     ====      ====      ===      ===
  Other expense
  Other expense             $476,068  489,362   478,451  500,056  563,710
  Amortization of
   core deposit and
   other
    intangible assets        (14,833) (16,475)  (16,730) (16,924) (15,231)
  Merger-related
   expenses                        -        -    (6,264) (14,010) (66,457)
    Noninterest
     operating expense      $461,235  472,887   455,457  469,122  482,022
                            ========  =======   =======  =======  =======
  Merger-related
   expenses
  Salaries and
   employee benefits      $        -        -       381      870    8,768
  Equipment and net
   occupancy                       -        -       545    1,845      581
  Printing, postage
   and supplies                    -        -       233      629    2,514
  Other costs of
   operations                      -        -     5,105   10,666   54,594
    Total                 $        -        -     6,264   14,010   66,457
                                 ===      ===     =====   ======   ======


  Balance sheet data
  ------------------
  In millions
  Average assets
  Average assets             $68,334   68,883    68,919   69,154   66,984
  Goodwill                    (3,525)  (3,525)   (3,525)  (3,525)  (3,326)
  Core deposit and
   other intangible
   assets                       (160)    (176)     (191)    (208)    (188)
  Deferred taxes                  30       34        37       41       30
                                          ---       ---      ---      ---
    Average tangible
     assets                  $64,679   65,216    65,240   65,462   63,500
                             =======   ======    ======   ======   ======
  Average common
   equity
  Average total
   equity                     $8,036    7,868     7,686    7,521    7,127
  Preferred stock               (734)    (732)     (729)    (727)    (636)
    Average common
     equity                    7,302    7,136     6,957    6,794    6,491
  Goodwill                    (3,525)  (3,525)   (3,525)  (3,525)  (3,326)
  Core deposit and
   other intangible
   assets                       (160)    (176)     (191)    (208)    (188)
  Deferred taxes                  30       34        37       41       30
                                          ---       ---      ---      ---
    Average tangible
     common equity            $3,647    3,469     3,278    3,102    3,007
                              ======    =====     =====    =====    =====

  At end of quarter
  Total assets
  Total assets               $68,154   68,439    68,880   68,997   69,913
  Goodwill                    (3,525)  (3,525)   (3,525)  (3,525)  (3,525)
  Core deposit and
   other intangible
   assets                       (152)    (167)     (182)    (199)    (216)
  Deferred taxes                  28       31        35       39       43
    Total tangible
     assets                  $64,505   64,778    65,208   65,312   66,215
                             =======   ======    ======   ======   ======
  Total common equity
  Total equity                $8,102    7,916     7,753    7,612    7,400
  Preferred stock               (735)    (733)     (730)    (728)    (725)
  Undeclared
   dividends -
   preferred stock                (7)      (6)       (6)      (5)      (6)
                                 ---      ---       ---      ---      ---
    Common equity, net
     of undeclared
      preferred dividends      7,360    7,177     7,017    6,879    6,669
  Goodwill                    (3,525)  (3,525)   (3,525)  (3,525)  (3,525)
  Core deposit and
   other intangible
   assets                       (152)    (167)     (182)    (199)    (216)
  Deferred taxes                  28       31        35       39       43
    Total tangible
     common equity            $3,711    3,516     3,345    3,194    2,971
                              ======    =====     =====    =====    =====

  (1) After any related tax effect.

 

Contact Investors:

Donald J. MacLeod

+1-716-842-5138

Media: C. Michael Zabel

+1-716-842-5385