M&T BANK CORPORATION

Impact on Previously Reported Financial Information

Three months ended

Year ended

Dollars in thousands,

December 31, 2013

December 31, 2013

 except per share

Initially

As

Initially

As

Reported

Revised

Reported

Revised

Other costs of operations 

$

261,422

301,422

$

820,327

860,327

Income before income taxes 

367,658

327,658

1,757,549

1,717,549

Applicable income taxes 

121,936

106,236

594,769

579,069

Net income  

245,722

221,422

1,162,780

1,138,480

Net income available to common shareholders 

227,449

203,451

1,086,481

1,062,496

Diluted earnings per common share 

1.74

1.56

8.38

8.20

At December 31, 2013

Initially

As

Reported

Revised

Other assets 

$

5,900,032

5,915,732

Accrued interest and other liabilities 

1,328,922

1,368,922

Total shareholders' equity 

11,329,832

11,305,532

Tangible common equity to tangible assets ratio 

8.42

%

8.39

%

Estimated Tier 1 common ratio 

9.25

%

9.22

%

Estimated Common Equity Tier 1 ratio (Basel III) 

9.01

%

8.98

%

M&T BANK CORPORATION

Financial Highlights

Three months ended

Year ended

Amounts in thousands,

December 31

December 31

 except per share

2013

2012

Change

2013

2012

Change

Performance

Net income 

$

221,422

296,193

-25

%

$

1,138,480

1,029,498

11

%

Net income available to common shareholders 

203,451

276,605

-26

%

1,062,496

953,429

11

%

Per common share:

  Basic earnings

$

1.57

2.18

-28

%

$

8.26

7.57

9

%

  Diluted earnings 

1.56

2.16

-28

%

8.20

7.54

9

%

  Cash dividends 

$

.70

.70

-

$

2.80

2.80

-

Common shares outstanding:

  Average - diluted (1) 

130,464

127,800

2

%

129,603

126,405

3

%

  Period end (2) 

130,564

128,234

2

%

130,564

128,234

2

%

Return on (annualized):

  Average total assets 

1.03

%

1.45

%

1.36

%

1.29

%

  Average common shareholders' equity  

7.99

%

12.10

%

10.93

%

10.96

%

Taxable-equivalent net interest income 

$

672,683

673,929

-

$

2,698,200

2,624,907

3

%

Yield on average earning assets 

3.92

%

4.17

%

4.03

%

4.22

%

Cost of interest-bearing liabilities 

.56

%

.67

%

.60

%

.74

%

Net interest spread 

3.36

%

3.50

%

3.43

%

3.48

%

Contribution of interest-free funds 

.20

%

.24

%

.22

%

.25

%

Net interest margin 

3.56

%

3.74

%

3.65

%

3.73

%

Net charge-offs to average total 

  net loans (annualized) 

.26

%

.27

%

.28

%

.30

%

Net operating results (3)

Net operating income  

$

227,797

304,657

-25

%

$

1,174,635

1,072,510

10

%

Diluted net operating earnings per common share 

1.61

2.23

-28

%

8.48

7.88

8

%

Return on (annualized):

  Average tangible assets 

1.11

%

1.56

%

1.47

%

1.40

%

  Average tangible common equity 

12.67

%

20.46

%

17.79

%

19.42

%

Efficiency ratio 

65.48

%

53.63

%

57.05

%

56.19

%

(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.

M&T BANK CORPORATION

Condensed Consolidated Statement of Income

Three months ended

Year ended

December 31

December 31

Dollars in thousands

2013

2012

Change

2013

2012

Change

Interest income 

$

734,466

745,353

-1

%

$

2,957,334

2,941,685

1

%

Interest expense 

67,982

77,931

-13

284,105

343,169

-17

Net interest income 

666,484

667,422

-

2,673,229

2,598,516

3

Provision for credit losses 

42,000

49,000

-14

185,000

204,000

-9

Net interest income after

   provision for credit losses 

624,484

618,422

1

2,488,229

2,394,516

4

Other income

     Mortgage banking revenues 

82,169

116,546

-29

331,265

349,064

-5

     Service charges on deposit accounts 

110,436

112,364

-2

446,941

446,698

-

     Trust income 

125,876

116,915

8

496,008

471,852

5

     Brokerage services income 

15,807

14,872

6

65,647

59,059

11

     Trading account and foreign exchange gains 

13,690

10,356

32

40,828

35,634

15

     Gain on bank investment securities 

-

-

-

56,457

9

-

     Other-than-temporary impairment losses 

        recognized in earnings 

-

(14,491)

-

(9,800)

(47,822)

-

     Equity in earnings of Bayview Lending Group LLC 

(6,136)

(4,941)

-

(16,126)

(21,511)

-

     Other revenues from operations 

104,404

101,543

3

453,985

374,287

21

          Total other income 

446,246

453,164

-2

1,865,205

1,667,270

12

Other expense

     Salaries and employee benefits 

336,159

323,010

4

1,355,178

1,314,540

3

     Equipment and net occupancy 

68,670

62,884

9

264,327

257,551

3

     Printing, postage and supplies 

8,808

10,417

-15

39,557

41,929

-6

     Amortization of core deposit and other 

        intangible assets 

10,439

13,865

-25

46,912

60,631

-23

     FDIC assessments 

17,574

23,398

-25

69,584

101,110

-31

     Other costs of operations 

301,422

192,572

57

860,327

733,499

17

          Total other expense 

743,072

626,146

19

2,635,885

2,509,260

5

Income before income taxes 

327,658

445,440

-26

1,717,549

1,552,526

11

Applicable income taxes 

106,236

149,247

-29

579,069

523,028

11

Net income 

$

221,422

296,193

-25

%

$

1,138,480

1,029,498

11

%

M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

December 31

Dollars in thousands

2013

2012

Change

ASSETS

Cash and due from banks 

$

1,573,361

1,983,615

-21

%

Interest-bearing deposits at banks 

1,651,138

129,945

-

Federal funds sold and agreements

  to resell securities 

99,573

3,000

-

Trading account assets 

376,131

488,966

-23

Investment securities 

8,796,497

6,074,361

45

Loans and leases:

   Commercial, financial, etc 

18,705,216

17,776,953

5

   Real estate - commercial 

26,148,208

25,993,790

1

   Real estate - consumer 

8,928,221

11,240,837

-21

   Consumer 

10,291,514

11,559,377

-11

     Total loans and leases, net of unearned discount 

64,073,159

66,570,957

-4

        Less: allowance for credit losses 

916,676

925,860

-1

  Net loans and leases 

63,156,483

65,645,097

-4

Goodwill 

3,524,625

3,524,625

-

Core deposit and other intangible assets 

68,851

115,763

-41

Other assets 

5,915,732

5,043,431

17

  Total assets 

$

85,162,391

83,008,803

3

%

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits 

$

24,661,007

24,240,802

2

%

Interest-bearing deposits 

42,134,859

40,325,932

4

Deposits at Cayman Islands office 

322,746

1,044,519

-69

  Total deposits 

67,118,612

65,611,253

2

Short-term borrowings 

260,455

1,074,482

-76

Accrued interest and other liabilities 

1,368,922

1,512,717

-10

Long-term borrowings 

5,108,870

4,607,758

11

  Total liabilities 

73,856,859

72,806,210

1

Shareholders' equity:

   Preferred 

881,500

872,500

1

   Common (1) 

10,424,032

9,330,093

12

     Total shareholders' equity 

11,305,532

10,202,593

11

  Total liabilities and shareholders' equity 

$

85,162,391

83,008,803

3

%

       at December 31, 2013 and $240.3 million at December 31, 2012.

M&T BANK CORPORATION

Reconciliation of GAAP to Non-GAAP Measures

Three months ended

Year ended

December 31

December 31

2013

2012

2013

2012

Income statement data

In thousands, except per share

Net income

Net income 

$

221,422

296,193

$

1,138,480

1,029,498

Amortization of core deposit and other

  intangible assets (1) 

6,375

8,464

28,644

37,011

Merger-related expenses (1)

-

-

7,511

6,001

  Net operating income 

$

227,797

304,657

$

1,174,635

1,072,510

Earnings per common share

Diluted earnings per common share 

$

1.56

2.16

$

8.20

7.54

Amortization of core deposit and other

  intangible assets (1) 

.05

.07

.22

.29

Merger-related expenses (1) 

-

-

.06

.05

  Diluted net operating earnings per common share

$

1.61

2.23

$

8.48

7.88

Other expense

Other expense 

$

743,072

626,146

$

2,635,885

2,509,260

Amortization of core deposit and other

  intangible assets  

(10,439)

(13,865)

(46,912)

(60,631)

Merger-related expenses 

-

-

(12,364)

(9,879)

  Noninterest operating expense 

$

732,633

612,281

$

2,576,609

2,438,750

Merger-related expenses

Salaries and employee benefits 

$

-

-

$

836

4,997

Equipment and net occupancy

-

-

690

15

Printing, postage and supplies 

-

-

1,825

-

Other costs of operations 

-

-

9,013

4,867

  Total 

$

-

-

$

12,364

9,879

Efficiency ratio

Noninterest operating expense (numerator) 

$

732,633

612,281

$

2,576,609

2,438,750

Taxable-equivalent net interest income 

672,683

673,929

2,698,200

2,624,907

Other income 

446,246

453,164

1,865,205

1,667,270

Less:  Gain on bank investment securities 

-

-

56,457

9

           Net OTTI losses recognized in earnings 

-

(14,491)

(9,800)

(47,822)

Denominator 

$

1,118,929

1,141,584

$

4,516,748

4,339,990

Efficiency ratio 

65.48

%

53.63

%

57.05

%

56.19

%

Balance sheet data

In millions

At end of quarter

Total assets

Total assets 

$

85,162

83,009

Goodwill 

(3,525)

(3,525)

Core deposit and other intangible assets 

(69)

(116)

Deferred taxes 

21

34

  Total tangible assets 

$

81,589

79,402

Total common equity

Total equity 

$

11,306

10,203

Preferred stock 

(882)

(873)

Undeclared dividends - cumulative preferred stock 

(3)

(3)

  Common equity, net of undeclared cumulative

    preferred dividends 

10,421

9,327

Goodwill 

(3,525)

(3,525)

Core deposit and other intangible assets 

(69)

(116)

Deferred taxes 

21

34

  Total tangible common equity 

$

6,848

5,720

(1) After any related tax effect.