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M&T Bank Corporation Announces Second Quarter Profits

BUFFALO, N.Y., July 21, 2010 /PRNewswire via COMTEX News Network/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) 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.

SOURCE M&T Bank Corporation

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