BUFFALO, N.Y., April 15, 2013 -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2013.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2013 were $1.98, up 32% from $1.50 in the year-earlier quarter.  GAAP-basis net income in the recent quarter was $274 million, 33% higher than $206 million in the initial 2012 quarter.  GAAP-basis net income for the first three months of 2013 expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.36% and 11.10%, respectively, compared with 1.06% and 9.04%, respectively, in the corresponding 2012 period.  The improved results in the recent quarter as compared with the first quarter of 2012 reflect higher net interest income and noninterest income, led by residential mortgage banking revenues, and lower credit costs.

Commenting on M&T's results for the recent quarter, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "M&T's results for the quarter truly reflect the strength of our operating model.  Residential mortgage banking revenues continued to be robust and trust income grew nicely from last year's fourth quarter.  Credit costs in the recent quarter were well below our historical trends, with the ratio of net charge-offs to average loans improving to .23%.  Our financial performance has allowed us to make continued investments in our infrastructure while improving our capital ratios, as demonstrated by a 36 basis point increase in our Tier 1 common ratio during the quarter."

Diluted earnings per common share and GAAP-basis net income in the fourth quarter of 2012 were $2.16 and $296 million, respectively.  GAAP-basis net income in that quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.45% and 12.10%, respectively.  Results for the first quarter of 2013 as compared with the final 2012 quarter reflect a decline in residential mortgage banking revenues and seasonally higher stock-based compensation and benefits costs.

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 gains and expenses 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 gains and expenses, were $2.06 in the recent quarter, compared with $1.59 and $2.23 in the first and fourth quarters of 2012, respectively.  Net operating income for the first three months of 2013 totaled $285 million, compared with $218 million and $305 million in the quarters ended March 31, 2012 and December 31, 2012, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.48% and 18.71%, respectively, in the first quarter of 2013, compared with 1.18% and 16.79% in the year-earlier quarter and 1.56% and 20.46% in the final 2012 quarter.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income rose 6% to $663 million in the recent quarter from $627 million in the year-earlier quarter.  That improvement resulted from an increase in average earning assets, fueled by $5.4 billion of growth in average loans and leases.  Also contributing to the improvement was a two basis point widening of the net interest margin to 3.71% from 3.69% in the first quarter of 2012.  Taxable-equivalent net interest income declined in the first quarter of 2013 from $674 million in the immediately preceding quarter.  That decrease reflects two less days in the recent quarter. 

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $38 million in the first quarter of 2013, improved from $49 million in each of the first and fourth quarters of 2012.  Net charge-offs of loans during the recent quarter were $37 million, down from $48 million in the first quarter of 2012 and $44 million in the final 2012 quarter.  Net charge-offs expressed as an annualized percentage of average loans outstanding were .23% during the first three months of 2013, improved significantly from .32% and .27% in the first and fourth quarters of 2012, respectively. 

Loans classified as nonaccrual totaled $1.05 billion, or 1.60% of total loans outstanding at March 31, 2013, compared with $1.07 billion or 1.75% a year earlier and $1.01 billion or 1.52% at December 31, 2012.  A change in the method of identifying nonaccrual home equity loans and lines of credit to reflect the repayment performance of the related senior lien loan that is not owned by M&T contributed to the modest increase in nonaccrual loans from the 2012 year-end to the recent quarter-end.

Assets taken in foreclosure of defaulted loans continued to decline and totaled $96 million at March 31, 2013, compared with $140 million and $104 million at March 31, 2012 and December 31, 2012, respectively. 

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of determining the allowance for credit losses.  As a result of those analyses, the allowance totaled $927 million at March 31, 2013, compared with $909 million at March 31, 2012 and $926 million at December 31, 2012.  The allowance expressed as a percentage of outstanding loans was 1.41% at March 31, 2013, compared with 1.49% and 1.39% at March 31, 2012 and December 31, 2012, respectively. 

Noninterest Income and Expense.  Noninterest income totaled $433 million in the first quarter of 2013, compared with $377 million and $453 million in the first and fourth quarters of 2012, respectively.  Contributing to the improvement from the year-earlier quarter was a $37 million rise in mortgage banking revenues, resulting from increased loan volumes and wider margins, and higher trust income.  The higher noninterest income in the final 2012 quarter reflected record mortgage banking revenues that were $23 million higher than in the first quarter of 2013.

Noninterest expense in 2013's first quarter totaled $636 million, compared with $640 million and $626 million in the first and fourth quarters of 2012, respectively.  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 $618 million in the recently completed quarter, $620 million in the first quarter of 2012 and $612 million in the final 2012 quarter.  As compared with the fourth quarter of 2012, seasonally higher stock-based compensation and benefits costs were reflected in noninterest operating expenses in the first quarters of 2013 and 2012.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 55.9% in the first quarter of 2013, compared with 61.1% in the year-earlier quarter and 53.6% in the fourth quarter of 2012.

Balance Sheet.  M&T had total assets of $82.8 billion at March 31, 2013, up 5% from $79.2 billion a year earlier.  Loans and leases, net of unearned discount, increased $5.0 billion or 8% to $65.9 billion at the recent quarter-end from $60.9 billion at March 31, 2012.  Total deposits rose 7% to $65.1 billion at March 31, 2013 from $60.9 billion a year earlier. 

Total shareholders' equity increased 11% to $10.4 billion at March 31, 2013 from $9.4 billion at March 31, 2012, representing 12.59% and 11.91%, respectively, of total assets.  Common shareholders' equity was $9.5 billion, or $73.99 per share at March 31, 2013, up from $8.6 billion, or $67.64 per share, a year earlier.  Tangible equity per common share rose 19% to $46.11 at March 31, 2013 from $38.89 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $72.73 and $44.61, respectively, at December 31, 2012.  In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances.  M&T's tangible common equity to tangible assets ratio was 7.51% at March 31, 2013, improved from 6.51% and 7.20% at March 31, 2012 and December 31, 2012, respectively.  M&T's estimated Tier 1 common ratio, a regulatory capital measure, was 7.93% at March 31, 2013, compared with 7.04% and 7.57% at March 31, 2012 and December 31, 2012, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first 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 #34438289.  The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available until Wednesday, April 17, 2013 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to the ID #34438289.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.  

M&T is a financial holding company headquartered in Buffalo, New York.  M&T's principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia. Trust-related services are provided by M&T's Wilmington Trust-affiliated companies and by M&T Bank.

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; the impact of changes in market values on trust-related revenues; 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.