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M&T Bank Corporation Announces Third Quarter Profits

BUFFALO, N.Y., Oct 20, 2010 /PRNewswire via COMTEX News Network/ -- M&T Bank Corporation ("M&T")(NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2010.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2010 rose 53% to $1.48 from $.97 in the year-earlier quarter and were 1% above the $1.46 earned in the second quarter of 2010. GAAP-basis net income in the recent quarter aggregated $192 million, up from $128 million and $189 million in the third quarter of 2009 and the second 2010 quarter, respectively. GAAP-basis net income for the third quarter of 2010 expressed as an annualized rate of return on average assets and average common stockholders' equity was 1.12% and 9.56%, respectively, compared with .73% and 6.72%, respectively, in the year-earlier quarter and 1.11% and 9.67%, respectively, in the second quarter of 2010.

Commenting on M&T's financial results in the recent quarter, Rene F. Jones, Executive Vice President and Chief Financial Officer, noted, "Revenues and net income held up nicely this quarter and were each improved from a year-earlier, despite lower fee income from deposit service charges resulting from the recently adopted changes in regulation. Once again, credit costs remained well-controlled. Customer loan balances charged off during the recent quarter declined by $49 million, or 34%, from last year's third quarter. This represents a welcome sign of the improvement in economic conditions relative to a year ago."

The recent quarter's earnings as compared with the third quarter of 2009 reflect higher 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 other-than-temporary impairment charges on certain available-for-sale investment securities, which after applicable tax effect totaled $6 million and $29 million during the quarters ended September 30, 2010 and 2009, respectively. Reflected in the results for the third quarter of 2009 were net merger-related gains of $9 million (after-tax), or $.08 of diluted earnings per common share, related to 2009 acquisitions. As compared with the second quarter of 2010, a recent quarter rise in mortgage banking revenues and lower other-than-temporary impairment charges on available-for-sale investment securities were partially offset by a decline in service charges on deposit accounts.

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 amounts 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, rose for the sixth consecutive quarter, totaling $1.55 in the recent quarter, improved from $.98 in the third quarter of 2009 and $1.53 in the second quarter of 2010. Net operating income during the third quarter of 2010 was $200 million, up from $129 million and $198 million in the third quarter of 2009 and the second 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 1.24% and 19.58%, respectively, in the recent quarter, compared with .78% and 14.87% in the year-earlier quarter and 1.23% and 20.36% in the second quarter of 2010.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $576 million in the third quarter of 2010, up from $553 million in the year-earlier period and $573 million in the second quarter of 2010. The improvement in such income from the third quarter of 2009 reflects a 26 basis point widening of the net interest margin, which rose to 3.87% from 3.61%. As compared with the second quarter of 2010, a 3 basis point improvement in the recent quarter's net interest margin was partly offset by a 1% decline in average earning assets.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $93 million in the recent quarter, compared with $154 million in the third quarter of 2009 and $85 million in 2010's second quarter. Net charge-offs of loans totaled $93 million during the third quarter of 2010, compared with $141 million and $82 million in the quarters ended September 30, 2009 and June 30, 2010, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .73% and 1.07% in the third quarter of 2010 and 2009, respectively, and .64% in the second quarter of 2010.

Loans classified as nonaccrual totaled $1.10 billion, or 2.16% of total loans at September 30, 2010, compared with $1.23 billion or 2.35% a year earlier and $1.09 billion or 2.13% at June 30, 2010. Assets taken in foreclosure of defaulted loans were $193 million at each of June 30 and September 30, 2010, up from $85 million at September 30, 2009. The higher level of such assets at the two most recent quarter-ends resulted from the second quarter 2010 transfer of $98 million of collateral related to a single commercial real estate loan. The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.53% at September 30, 2010, compared with 2.51% and 2.50% at September 30, 2009 and June 30, 2010, respectively.

Loans past due 90 days or more and accruing interest totaled $215 million at the end of the recent quarter, including loans guaranteed by government-related entities of $194 million. Such past due loans were $183 million and $203 million at September 30, 2009 and June 30, 2010, respectively, including $173 million and $188 million of government guaranteed loans at those respective dates.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. Reflecting those analyses, the allowance for credit losses was $895 million at each of June 30 and September 30, 2010, compared with $868 million at September 30, 2009. That allowance expressed as a percentage of outstanding loans was 1.76% at the recent quarter-end, compared with 1.66% at September 30, 2009 and 1.75% at June 30, 2010. 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 1.81% at September 30, 2009.

Noninterest Income and Expense. Noninterest income totaled $290 million in the recent quarter, compared with $278 million and $274 million in the third quarter of 2009 and the second quarter of 2010, respectively. Reflected in those amounts were net losses from investment securities of $8 million, $47 million and $22 million, each predominantly due to other-than-temporary impairment charges. During each of those quarters, such charges reflected write-downs of certain of M&T's holdings of privately issued collateralized mortgage obligations and collateralized debt obligations backed by pooled trust preferred securities. In addition, during 2010's second quarter, other-than-temporary impairment charges included 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. Excluding gains and losses from investment securities and a pre-tax merger-related gain of $29 million in the third quarter of 2009, noninterest income in the third quarter of 2010 aggregated $298 million, up from $296 million in each of the third quarter of 2009 and the second 2010 quarter. The higher level of noninterest income in the recent quarter resulted largely from higher mortgage banking revenues that were largely offset by declines in service charges on deposit accounts. The lower level of deposit service charge revenues was attributable to new regulations that went into effect July 1, 2010 for new customers and August 15, 2010 for pre-existing customers. Such regulations require depositors to elect to be subject to fees for certain deposit account services.

Noninterest expense in the third quarter of 2010 aggregated $480 million, compared with $500 million in the year-earlier quarter and $476 million in the second 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 these expenses, noninterest operating expenses were $467 million in the recent quarter, compared with $469 million in the third quarter of 2009 and $461 million in 2010's second quarter.

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities and merger-related expenses and gains), measures the relationship of operating expenses to revenues. M&T's efficiency ratio was 53.4% in the recent quarter, compared with 55.2% and 53.1% in the year-earlier quarter and the second quarter of 2010, respectively.

Balance Sheet. M&T had total assets of $68.2 billion at September 30, 2010, compared with $69.0 billion at September 30, 2009. Loans and leases, net of unearned discount, were $50.8 billion at September 30, 2010, down 3% from $52.2 billion a year earlier. Total deposits aggregated $48.7 billion at the recent quarter-end, up 4% from $46.9 billion at September 30, 2009. Reflecting a $1.9 billion or 15% increase in noninterest-bearing deposits, deposits at domestic offices rose $2.5 billion, or 5%, to $48.0 billion at the recent quarter-end from $45.5 billion at September 30, 2009.

Total stockholders' equity rose 8% to $8.2 billion at September 30, 2010 from $7.6 billion a year earlier, representing 12.06% and 11.03%, respectively, of total assets. Common stockholders' equity was $7.5 billion, or $62.69 per share, at September 30, 2010, compared with $6.9 billion, or $58.22 per share, at September 30, 2009. Tangible equity per common share rose to $32.23 at September 30, 2010 from $27.03 at September 30, 2009. 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. M&T's tangible common equity to tangible assets ratio was 5.96% at September 30, 2010, compared with 4.89% and 5.75% at September 30, 2009 and June 30, 2010, respectively.

Allied Irish Banks, p.l.c. initiated steps in early October to divest its holdings of M&T common shares. In a public offering, 26.7 million of Contingent Mandatorily Exchangeable Notes, each note exchangeable for one share of M&T common stock, were sold in a single day. The notes were distributed directly to one hundred twenty-three institutional investors as well as through retail delivery channels.

Conference Call. Investors will have an opportunity to listen to M&T's conference call to discuss third 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 #17941643. The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Friday, October 22, 2010 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to ID #17941643. 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 headquartered in Buffalo, New York. M&T's banking subsidiaries, M&T Bank and M&T Bank, National Association, operate retail and commercial bank branches in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey, the District of Columbia and Ontario, Canada.

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.

    M&T BANK CORPORATION
    Financial Highlights

                                             Three months ended
    Amounts in thousands,                       September 30
                                                ------------
     except per share                         2010          2009     Change
                                                --            --     ------

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

    Net income                            $192,015       127,664         50%
    Net income available to common
     equity                                179,306       115,143         56

    Per common share:
      Basic earnings                         $1.49           .97         54%
      Diluted earnings                        1.48           .97         53
      Cash dividends                          $.70           .70          -

    Common shares outstanding:
      Average - diluted (1)                119,155       117,547          1%
      Period end (2)                       119,435       118,156          1

    Return on (annualized):
      Average total assets                    1.12%          .73%
      Average common stockholders'
       equity                                 9.56%         6.72%

    Taxable-equivalent net
     interest income                      $575,733       553,450          4%

    Yield on average earning
     assets                                   4.65%         4.60%
    Cost of interest-bearing
     liabilities                              1.03%         1.26%
    Net interest spread                       3.62%         3.34%
    Contribution of interest-free
     funds                                     .25%          .27%
    Net interest margin                       3.87%         3.61%

    Net charge-offs to average
     total
      net loans (annualized)                   .73%         1.07%

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

    Net operating income                  $200,225       128,761         56%
    Diluted net operating earnings
     per common share                         1.55           .98         58
    Return on (annualized):
      Average tangible assets                 1.24%          .78%
      Average tangible common equity         19.58%        14.87%
    Efficiency ratio                         53.40%        55.21%



                                           Nine months ended
    Amounts in thousands,                     September 30
                                              ------------
     except per share                          2010          2009      Change
                                                 --            --      ------

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

    Net income                             $531,719       243,073         119%
    Net income available to common
     equity                                 493,735       211,429         134

    Per common share:
      Basic earnings                          $4.12          1.84         124%
      Diluted earnings                         4.10          1.84         123
      Cash dividends                          $2.10          2.10

    Common shares outstanding:
      Average - diluted (1)                 118,766       113,800           4%
      Period end (2)                        119,435       118,156           1

    Return on (annualized):
      Average total assets                     1.04%          .49%
      Average common stockholders'
       equity                                  9.05%         4.35%

    Taxable-equivalent net
     interest income                     $1,711,322     1,512,971          13%

    Yield on average earning
     assets                                    4.62%         4.62%
    Cost of interest-bearing
     liabilities                               1.04%         1.49%
    Net interest spread                        3.58%         3.13%
    Contribution of interest-free
     funds                                      .25%          .28%
    Net interest margin                        3.83%         3.41%

    Net charge-offs to average
     total
      net loans (annualized)                    .70%         1.00%

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

    Net operating income                   $558,930       304,600          83%
    Diluted net operating earnings
     per common share                          4.33          2.37          83
    Return on (annualized):
      Average tangible assets                  1.16%          .64%
      Average tangible common equity          19.13%        12.19%
    Efficiency ratio                          54.10%        57.90%


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

    Nonaccrual loans               $1,099,560        1,228,341     -10%
    Real estate and other
     foreclosed assets                192,600           84,676     127%
      Total nonperforming assets   $1,292,160        1,313,017      -2%
                                   ==========        =========

    Accruing loans past due 90
     days or more                    $214,769          182,750      18%

    Renegotiated loans               $233,671          190,917      22%

    Government guaranteed loans
     included in totals
      above:
      Nonaccrual loans                $38,232           38,590      -1%
      Accruing loans past due 90
       days or more                   194,223          172,701      12%

    Purchased impaired loans (4):
      Outstanding customer balance   $113,964          209,138     -46%
      Carrying amount                  52,728          108,058     -51%

    Nonaccrual loans to total net
     loans                               2.16%            2.35%

    Allowance for credit losses
     to:
      Legacy loans                       1.86%            1.81%
      Total loans                        1.76%            1.66%




    (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
                                           ------------------
                               September
    Amounts in thousands,          30,          June 30,        March 31,
     except per share                  2010            2010             2010
                                                      ----             ----

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

    Net income                 $192,015         188,749         150,955
    Net income available
     to common equity           179,306         176,088         138,341

    Per common share:
      Basic earnings              $1.49            1.47            1.16
      Diluted earnings             1.48            1.46            1.15
      Cash dividends               $.70             .70             .70

    Common shares
     outstanding:
      Average -diluted (1)      119,155         118,878         118,256
      Period end (2)            119,435         119,161         118,823

    Return on
     (annualized):
      Average total assets         1.12%           1.11%            .89%
      Average common
       stockholders' equity        9.56%           9.67%           7.86%

    Taxable-equivalent
     net interest income       $575,733         573,332         562,257

    Yield on average
     earning assets                4.65%           4.63%           4.59%
    Cost of interest-
     bearing liabilities           1.03%           1.04%           1.04%
    Net interest spread            3.62%           3.59%           3.55%
    Contribution of
     interest-free funds            .25%            .25%            .23%
    Net interest margin            3.87%           3.84%           3.78%

    Net charge-offs to
     average total
      net loans (annualized)        .73%            .64%            .74%

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

    Net operating income       $200,225         197,752         160,953
    Diluted net operating
     earnings per common
     share                         1.55            1.53            1.23
    Return on
     (annualized):
      Average tangible
       assets                      1.24%           1.23%           1.00%
      Average tangible
       common equity              19.58%          20.36%          17.34%
    Efficiency ratio              53.40%          53.06%          55.88%




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

    Nonaccrual loans         $1,099,560       1,090,135       1,339,992
    Real estate and other
     foreclosed assets          192,600         192,631          95,362
                                -------
      Total nonperforming
       assets                $1,292,160       1,282,766       1,435,354
                             ==========       =========       =========

    Accruing loans past
     due 90 days or more       $214,769         203,081         203,443

    Renegotiated loans         $233,671         228,847         220,885

    Government guaranteed
     loans included in
     totals
      above:
      Nonaccrual loans          $38,232          40,271          37,048
      Accruing loans past
       due 90 days or more      194,223         187,682         194,523

    Purchased impaired
     loans (4):
      Outstanding customer
       balance                 $113,964         130,808         148,686
      Carrying amount            52,728          61,524          73,890

    Nonaccrual loans to
     total net loans               2.16%           2.13%           2.60%

    Allowance for credit
     losses to:
      Legacy loans                 1.86%           1.86%           1.86%
      Total loans                  1.76%           1.75%           1.73%





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

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

    Net income                               136,818             127,664
    Net income available to common
     equity                                  124,251             115,143

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

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

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

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

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

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

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

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




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

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

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

    Renegotiated loans                       212,548             190,917

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

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

    Nonaccrual loans to total net
     loans                                      2.56%               2.35%

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




    (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
                                              September 30
                                              ------------
    Dollars in thousands                      2010           2009  Change
                                                --             --  ------


    Interest income                       $685,900        700,593       -2%
    Interest expense                       116,032        152,938      -24
                                           -------        -------

    Net interest income                    569,868        547,655        4

    Provision for credit losses             93,000        154,000      -40
                                            ------        -------

    Net interest income after
       provision for credit losses         476,868        393,655       21

    Other income
         Mortgage banking revenues          61,052         48,169       27
         Service charges on deposit
          accounts                         117,733        128,502       -8
         Trust income                       30,485         31,586       -3
         Brokerage services income          12,127         14,329      -15
         Trading account and foreign
          exchange gains                     6,035          7,478      -19
         Gain (loss) on bank investment
          securities                         1,440            (56)       -
         Other-than-temporary impairment
          losses
            recognized in earnings          (9,532)       (47,033)       -
         Equity in earnings of Bayview
          Lending Group LLC                 (6,460)       (10,912)       -
         Other revenues from operations     77,019        106,163      -27
                                            ------        -------
              Total other income           289,899        278,226        4

    Other expense
         Salaries and employee benefits    246,389        255,449       -4
         Equipment and net occupancy        54,353         58,195       -7
         Printing, postage and supplies      7,820          8,229       -5
         Amortization of core deposit and
          other
            intangible assets               13,526         16,924      -20
         FDIC assessments                   18,039         21,124      -15
         Other costs of operations         140,006        140,135        -
                                           -------        -------
              Total other expense          480,133        500,056       -4

    Income before income taxes             286,634        171,825       67

    Applicable income taxes                 94,619         44,161      114
                                            ------         ------

    Net income                            $192,015        127,664       50%
                                          ========        =======




                                          Nine months ended
                                            September 30
                                            ------------
    Dollars in thousands                   2010              2009  Change
                                             --                --  ------


    Interest income                  $2,047,070         2,032,528        1%
    Interest expense                    353,641           535,499      -34
                                        -------           -------

    Net interest income               1,693,429         1,497,029       13

    Provision for credit losses         283,000           459,000      -38
                                        -------           -------

    Net interest income after
       provision for credit losses    1,410,429         1,038,029       36

    Other income
         Mortgage banking revenues      149,612           157,385       -5
         Service charges on deposit
          accounts                      367,004           342,010        7
         Trust income                    91,582            98,908       -7
         Brokerage services income       38,021            43,215      -12
         Trading account and foreign
          exchange gains                 14,531            16,456      -12
         Gain (loss) on bank
          investment securities           1,909               811        -
         Other-than-temporary
          impairment losses
            recognized in earnings      (58,714)         (104,001)       -
         Equity in earnings of
          Bayview Lending Group LLC     (18,353)          (15,263)       -
         Other revenues from
          operations                    235,570           242,695       -3
                                        -------           -------
              Total other income        821,162           782,216        5

    Other expense
         Salaries and employee
          benefits                      756,296           754,793        -
         Equipment and net occupancy    165,185           157,688        5
         Printing, postage and
          supplies                       25,412            28,878      -12
         Amortization of core
          deposit and other
            intangible assets            44,834            47,525       -6
         FDIC assessments                60,995            76,617      -20
         Other costs of operations      392,841           436,611      -10
                                        -------           -------
              Total other expense     1,445,563         1,502,112       -4

    Income before income taxes          786,028           318,133      147

    Applicable income taxes             254,309            75,060      239
                                        -------            ------

    Net income                         $531,719           243,073      119%
                                       ========           =======


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


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

    Interest income                          $685,900   684,784   676,386
    Interest expense                          116,032   117,557   120,052
                                              -------   -------   -------

    Net interest income                       569,868   567,227   556,334

    Provision for credit losses                93,000    85,000   105,000
                                               ------    ------   -------

    Net interest income after
       provision for credit losses            476,868   482,227   451,334

    Other income
         Mortgage banking revenues             61,052    47,084    41,476
         Service charges on deposit
          accounts                            117,733   128,976   120,295
         Trust income                          30,485    30,169    30,928
         Brokerage services income             12,127    12,788    13,106
         Trading account and foreign
          exchange gains                        6,035     3,797     4,699
         Gain (loss) on bank investment
          securities                            1,440        10       459
         Other-than-temporary
          impairment losses
            recognized in earnings             (9,532) (22,380)   (26,802)
         Equity in earnings of Bayview
          Lending Group LLC                    (6,460)   (6,179)   (5,714)
         Other revenues from operations        77,019    79,292    79,259
                                               ------    ------    ------
              Total other income              289,899   273,557   257,706

    Other expense
         Salaries and employee benefits       246,389   245,861   264,046
         Equipment and net occupancy           54,353    55,431    55,401
         Printing, postage and supplies         7,820     8,549     9,043
         Amortization of core deposit
          and other
            intangible assets                  13,526    14,833    16,475
         FDIC assessments                      18,039    21,608    21,348
         Other costs of operations            140,006   129,786   123,049
                                              -------   -------   -------
              Total other expense             480,133   476,068   489,362

    Income before income taxes                286,634   279,716   219,678

    Applicable income taxes                    94,619    90,967    68,723
                                               ------    ------    ------

    Net income                               $192,015   188,749   150,955
                                             ========   =======   =======



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

    Interest income                         692,669          700,593
    Interest expense                        133,950          152,938
                                            -------          -------

    Net interest income                     558,719          547,655

    Provision for credit losses             145,000          154,000
                                            -------          -------

    Net interest income after
       provision for credit losses          413,719          393,655

    Other income
         Mortgage banking revenues           50,176           48,169
         Service charges on deposit
          accounts                          127,185          128,502
         Trust income                        29,660           31,586
         Brokerage services income           14,396           14,329
         Trading account and foreign
          exchange gains                      6,669            7,478
         Gain (loss) on bank investment
          securities                            354              (56)
         Other-than-temporary
          impairment losses
            recognized in earnings          (34,296)         (47,033)
         Equity in earnings of Bayview
          Lending Group LLC                 (10,635)         (10,912)
         Other revenues from operations      82,381          106,163
                                             ------          -------
              Total other income            265,890          278,226

    Other expense
         Salaries and employee benefits     247,080          255,449
         Equipment and net occupancy         53,703           58,195
         Printing, postage and supplies       9,338            8,229
         Amortization of core deposit
          and other
            intangible assets                16,730           16,924
         FDIC assessments                    19,902           21,124
         Other costs of operations          131,698          140,135
                                            -------          -------
              Total other expense           478,451          500,056

    Income before income taxes              201,158          171,825

    Applicable income taxes                  64,340           44,161
                                             ------           ------

    Net income                              136,818          127,664
                                            =======          =======


    M&T BANK CORPORATION
    Condensed Consolidated Balance Sheet

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

    ASSETS

    Cash and due from banks                    $1,070,625  1,356,508    -21%

    Interest-bearing deposits at
     banks                                        401,624     54,443    638

    Federal funds sold and agreements
      to resell securities                        443,700     17,206      -

    Trading account assets                        536,702    497,064      8

    Investment securities                       7,662,715  7,634,262      -

    Loans and leases:

       Commercial, financial, etc              12,788,136 13,517,538     -5
       Real estate - commercial                20,580,450 21,007,376     -2
       Real estate - consumer                   5,754,432  5,427,260      6
       Consumer                                11,668,540 12,251,598     -5
                                               ---------- ----------
         Total loans and leases, net of
          unearned discount                    50,791,558 52,203,772     -3
            Less: allowance for credit losses     894,720    867,874      3
                                                  -------    -------

      Net loans and leases                     49,896,838 51,335,898     -3

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

    Core deposit and other intangible
     assets                                       139,186    199,148    -30

    Other assets                                4,570,822  4,378,296      4
                                                ---------  ---------

      Total assets                            $68,246,837 68,997,450     -1%
                                              =========== ==========


    LIABILITIES AND STOCKHOLDERS'
     EQUITY

    Noninterest-bearing deposits at
     U.S. offices                             $14,665,603 12,730,083     15%

    Other deposits at U.S. offices             33,335,104 32,813,698      2

    Deposits at foreign office                    653,916  1,318,070    -50
                                                  -------  ---------

      Total deposits                           48,654,623 46,861,851      4

    Short-term borrowings                       1,211,683  2,927,268    -59

    Accrued interest and other
     liabilities                                1,157,250  1,241,576     -7

    Long-term borrowings                        8,991,508 10,354,392    -13
                                                --------- ----------

      Total liabilities                        60,015,064 61,385,087     -2

    Stockholders' equity:

       Preferred                                  737,979    727,748      1
       Common (1)                               7,493,794  6,884,615      9
                                                ---------  ---------

         Total stockholders' equity             8,231,773  7,612,363      8
                                                ---------  ---------

      Total liabilities and
       stockholders' equity                   $68,246,837 68,997,450     -1%
                                              =========== ==========





    (1)  Reflects accumulated other comprehensive loss, net of applicable
    income tax effect, of $192.6 million
           at September 30, 2010 and $419.3 million at September 30, 2009.

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

                                  September
                                       30,       June 30,      March 31,
    Dollars in thousands                   2010           2010       2010
                                            --           ----       ----

    ASSETS

    Cash and due from
     banks                       $1,070,625      1,045,886      1,033,269

    Interest-bearing
     deposits at banks              401,624        117,826        121,305

    Federal funds sold
     and agreements
      to resell securities          443,700         10,000         10,400

    Trading account
     assets                         536,702        487,692        403,476

    Investment securities         7,662,715      8,097,572      8,104,646

    Loans and leases:

       Commercial,
        financial, etc           12,788,136     13,017,598     13,220,181
       Real estate -
        commercial               20,580,450     20,612,905     20,724,118
       Real estate -
        consumer                  5,754,432      5,729,126      5,664,159
       Consumer                  11,668,540     11,701,657     11,835,583
                                 ----------     ----------     ----------
         Total loans and
          leases, net of
          unearned discount      50,791,558     51,061,286     51,444,041
            Less: allowance for
             credit losses          894,720        894,667        891,265
                                    -------        -------        -------

      Net loans and leases       49,896,838     50,166,619     50,552,776

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

    Core deposit and
     other intangible
     assets                         139,186        152,712        167,545

    Other assets                  4,570,822      4,550,684      4,521,180
                                  ---------      ---------      ---------

      Total assets              $68,246,837     68,153,616     68,439,222
                                ===========     ==========     ==========


    LIABILITIES AND
     STOCKHOLDERS' EQUITY

    Noninterest-bearing
     deposits at U.S.
     offices                    $14,665,603     13,960,723     13,622,819

    Other deposits at
     U.S. offices                33,335,104     33,010,520     33,125,761

    Deposits at foreign
     office                         653,916        551,428        789,825
                                    -------        -------        -------

      Total deposits             48,654,623     47,522,671     47,538,405

    Short-term borrowings         1,211,683      2,158,957      1,870,763

    Accrued interest and
     other liabilities            1,157,250      1,114,615      1,048,473

    Long-term borrowings          8,991,508      9,255,529     10,065,894
                                  ---------      ---------     ----------

      Total liabilities          60,015,064     60,051,772     60,523,535

    Stockholders' equity:

       Preferred                    737,979        735,350        732,769
       Common (1)                 7,493,794      7,366,494      7,182,918
                                  ---------      ---------      ---------

         Total stockholders'
          equity                  8,231,773      8,101,844      7,915,687
                                  ---------      ---------      ---------

      Total liabilities and
       stockholders' equity     $68,246,837     68,153,616     68,439,222
                                ===========     ==========     ==========






                                               December   September
                                                  31,        30,
    Dollars in thousands                            2009       2009
                                                    ----       ----

    ASSETS

    Cash and due from banks                    1,226,223  1,356,508

    Interest-bearing deposits at
     banks                                       133,335     54,443

    Federal funds sold and agreements
      to resell securities                        20,119     17,206

    Trading account assets                       386,984    497,064

    Investment securities                      7,780,609  7,634,262

    Loans and leases:

       Commercial, financial, etc             13,479,447 13,517,538
       Real estate - commercial               20,949,931 21,007,376
       Real estate - consumer                  5,463,463  5,427,260
       Consumer                               12,043,845 12,251,598
                                              ---------- ----------
         Total loans and leases, net of
          unearned discount                   51,936,686 52,203,772
            Less: allowance for credit losses    878,022    867,874


      Net loans and leases                    51,058,664 51,335,898

    Goodwill                                   3,524,625  3,524,625

    Core deposit and other intangible
     assets                                      182,418    199,148

    Other assets                               4,567,422  4,378,296
                                               ---------  ---------

      Total assets                            68,880,399 68,997,450
                                              ========== ==========


    LIABILITIES AND STOCKHOLDERS'
     EQUITY

    Noninterest-bearing deposits at
     U.S. offices                             13,794,636 12,730,083

    Other deposits at U.S. offices            32,604,764 32,813,698

    Deposits at foreign office                 1,050,438  1,318,070
                                               ---------  ---------

      Total deposits                          47,449,838 46,861,851

    Short-term borrowings                      2,442,582  2,927,268

    Accrued interest and other
     liabilities                                 995,056  1,241,576

    Long-term borrowings                      10,240,016 10,354,392
                                              ---------- ----------

      Total liabilities                       61,127,492 61,385,087

    Stockholders' equity:

       Preferred                                 730,235    727,748
       Common (1)                              7,022,672  6,884,615
                                               ---------  ---------

         Total stockholders' equity            7,752,907  7,612,363
                                               ---------  ---------

      Total liabilities and
       stockholders' equity                   68,880,399 68,997,450
                                              ========== ==========





    (1)  Reflects accumulated other comprehensive loss, net of applicable
    income tax effect, of $192.6 million
          at September 30, 2010, $197.2 million at June 30, 2010, $255.2
          million at March 31, 2010, $336.0
          million at December 31, 2009 and $419.3 million at September 30,
          2009.

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

                                      Three months ended
                                      ------------------
                               September      September
                                   30,              30,        June 30,
                                      2010             2009           2010
                                      ----             ----           ----
                             Balance Rate   Balance   Rate   Balance Rate
                             ------- ----   -------   ----   ------- ----
    ASSETS

    Interest-bearing
     deposits at banks           $92   .15%      66     .04%      81   .02%

    Federal funds sold and
     agreements
      to resell securities
                                  64   .26       11     .58       10   .41

    Trading account assets        82   .65       83     .82       66   .96

    Investment securities      7,993  4.16    8,420    4.81    8,376  4.27

    Loans and leases, net
     of unearned discount
      Commercial, financial,
       etc                    12,856  3.97   13,801    3.78   13,096  4.03
      Real estate -
       commercial.            20,612  4.85   20,843    4.48   20,759  4.64
      Real estate -consumer    5,680  5.30    5,429    5.43    5,653  5.35
      Consumer                11,687  5.22   12,247    5.37   11,770  5.24
       Total loans and
        leases, net           50,835  4.74   52,320    4.58   51,278  4.71
                              ------         ------           ------

      Total earning assets    59,066  4.65   60,900    4.60   59,811  4.63

    Goodwill                   3,525          3,525            3,525

    Core deposit and other
     intangible assets           146            208              160

    Other assets               5,074          4,521            4,838
                               -----          -----            -----

      Total assets           $67,811         69,154           68,334
                             =======         ======           ======



    LIABILITIES AND
     STOCKHOLDERS' EQUITY

    Interest-bearing
     deposits
      NOW accounts              $592   .15      541     .21      619   .14
      Savings deposits        26,177   .33   23,367     .37   25,942   .33
      Time deposits            6,312  1.46    9,246    2.17    6,789  1.55
      Deposits at foreign
       office                    802   .16    1,444     .13      972   .16
       Total interest-
        bearing deposits      33,883   .53   34,598     .84   34,322   .56
                              ------         ------           ------

    Short-term borrowings      1,858   .16    2,663     .26    1,763   .17
    Long-term borrowings       8,948  3.10   11,008    2.80    9,454  2.91
                               -----         ------            -----

    Total interest-
     bearing liabilities      44,689  1.03   48,269    1.26   45,539  1.04

    Noninterest-bearing
     deposits                 13,647         12,122           13,610

    Other liabilities          1,294          1,242            1,149
                               -----          -----            -----

      Total liabilities       59,630         61,633           60,298

    Stockholders' equity       8,181          7,521            8,036
                               -----          -----            -----

      Total liabilities and
       stockholders' equity  $67,811         69,154           68,334
                             =======         ======           ======


    Net interest spread               3.62             3.34           3.59
    Contribution of
     interest-free funds               .25              .27            .25
    Net interest margin               3.87%            3.61%          3.84%



                                             Change in balance
                                             September 30, 2010
                                                    from
                                         September          June
                                            30,           30,
                                             2009         2010
                                             ----         ----
    ASSETS

    Interest-bearing deposits at
     banks                               41%            14%

    Federal funds sold and
     agreements
      to resell securities
                                        457            531

    Trading account assets               -1             23

    Investment securities                -5             -5

    Loans and leases, net of
     unearned discount
      Commercial, financial, etc         -7             -2
      Real estate - commercial.          -1             -1
      Real estate - consumer              5              -
      Consumer                           -5             -1
       Total loans and leases, net       -3             -1

      Total earning assets               -3             -1

    Goodwill                              -              -

    Core deposit and other
     intangible assets                  -30             -9

    Other assets                         12              5

      Total assets                       -2%            -1%



    LIABILITIES AND STOCKHOLDERS'
     EQUITY

    Interest-bearing deposits
      NOW accounts                        9%            -4%
      Savings deposits                   12              1
      Time deposits                     -32             -7
      Deposits at foreign office        -44            -18
       Total interest-bearing
        deposits                         -2             -1

    Short-term borrowings               -30              5
    Long-term borrowings                -19             -5

    Total interest-bearing
     liabilities                         -7             -2

    Noninterest-bearing deposits         13              -

    Other liabilities                     4             13

      Total liabilities                  -3             -1

    Stockholders' equity                  9              2

      Total liabilities and
       stockholders' equity              -2%            -1%


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



                                           Nine months ended
                                             September 30
                                             ------------
                                             2010               2009
                                   Balance  Rate       Balance Rate
                                   -------  ----       ------- ----
    ASSETS

    Interest-bearing deposits at
     banks                            $100    .06%          43   .06%

    Federal funds sold and
     agreements
      to resell securities
                                        33    .27           62   .25

    Trading account assets              69    .79           92   .76

    Investment securities            8,180   4.29        8,472  4.84

    Loans and leases, net of
     unearned discount
      Commercial, financial, etc    13,118   3.96       13,965  3.76
      Real estate - commercial.     20,745   4.66       19,793  4.45
      Real estate - consumer         5,691   5.32        5,243  5.47
      Consumer                      11,795   5.24       11,578  5.47
                                    ------              ------
       Total loans and leases, net  51,349   4.69       50,579  4.60
                                    ------              ------

      Total earning assets          59,731   4.62       59,248  4.62

    Goodwill                         3,525               3,349

    Core deposit and other
     intangible assets                 160                 191

    Other assets                     4,923               4,196
                                     -----               -----

      Total assets                 $68,339              66,984
                                   =======              ======



    LIABILITIES AND STOCKHOLDERS'
     EQUITY

    Interest-bearing deposits
      NOW accounts                    $599    .14          531   .22
      Savings deposits              25,733    .33       22,358   .54
      Time deposits                  6,767   1.56        8,943  2.49
      Deposits at foreign office     1,002    .14        1,788   .15
                                     -----               -----
       Total interest-bearing
        deposits                    34,101    .56       33,620  1.03
                                    ------              ------

    Short-term borrowings            1,994    .16        3,114   .26
    Long-term borrowings             9,516   2.91       11,376  3.17
                                     -----              ------

    Total interest-bearing
     liabilities                    45,611   1.04       48,110  1.49

    Noninterest-bearing deposits    13,518              10,416

    Other liabilities                1,180               1,313
                                     -----               -----

      Total liabilities             60,309              59,839

    Stockholders' equity             8,030               7,145
                                     -----               -----

      Total liabilities and
       stockholders' equity        $68,339              66,984
                                   =======              ======


    Net interest spread                      3.58               3.13
    Contribution of interest-free
     funds                                    .25                .28
    Net interest margin                      3.83%              3.41%





                                       Change
                                          in
                                       balance
                                       -------
    ASSETS

    Interest-bearing deposits at
     banks                                 134%

    Federal funds sold and
     agreements
      to resell securities
                                           -47

    Trading account assets                 -24

    Investment securities                   -3

    Loans and leases, net of
     unearned discount
      Commercial, financial, etc            -6
      Real estate - commercial.              5
      Real estate - consumer                 9
      Consumer                               2
       Total loans and leases, net           2

      Total earning assets                   1

    Goodwill                                 5

    Core deposit and other
     intangible assets                     -16

    Other assets                            17

      Total assets                           2%



    LIABILITIES AND STOCKHOLDERS'
     EQUITY

    Interest-bearing deposits
      NOW accounts                          13%
      Savings deposits                      15
      Time deposits                        -24
      Deposits at foreign office           -44
       Total interest-bearing
        deposits                             1

    Short-term borrowings                  -36
    Long-term borrowings                   -16

    Total interest-bearing
     liabilities                            -5

    Noninterest-bearing deposits            30

    Other liabilities                      -10

      Total liabilities                      1

    Stockholders' equity                    12

      Total liabilities and
       stockholders' equity                  2%


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


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

                                                     Three months ended
                                                        September 30
                                                        ------------
                                                       2010            2009
                                                       ----            ----
    Income statement data
    ---------------------
    In thousands, except per share
    Net income
    Net income                                     $192,015         127,664
    Amortization of core deposit and
     other
      intangible assets (1)                           8,210          10,270
    Merger-related gain (1)                               -         (17,684)
    Merger-related expenses (1)                           -           8,511
      Net operating income                         $200,225         128,761
                                                   ========         =======
    Earnings per common share
    Diluted earnings per common share                 $1.48             .97
    Amortization of core deposit and
     other
      intangible assets (1)                             .07             .09
    Merger-related gain (1)                               -            (.15)
    Merger-related expenses (1)                           -             .07
      Diluted net operating earnings per
       common share                                   $1.55             .98
                                                      =====             ===
    Other expense
    Other expense                                  $480,133         500,056
    Amortization of core deposit and
     other
      intangible assets                             (13,526)        (16,924)
    Merger-related expenses                               -         (14,010)
      Noninterest operating expense                $466,607         469,122
                                                   ========         =======
    Merger-related expenses
    Salaries and employee benefits             $          -             870
    Equipment and net occupancy                           -           1,845
    Printing, postage and supplies                        -             629
    Other costs of operations                             -          10,666
      Total                                    $          -          14,010
                                                        ===          ======


    Balance sheet data
    ------------------
    In millions
    Average assets
    Average assets                                  $67,811          69,154
    Goodwill                                         (3,525)         (3,525)
    Core deposit and other intangible
     assets                                            (146)           (208)
    Deferred taxes                                       27              41
                                                        ---             ---
      Average tangible assets                       $64,167          65,462
                                                    =======          ======
    Average common equity
    Average total equity                             $8,181           7,521
    Preferred stock                                    (737)           (727)
      Average common equity                           7,444           6,794
    Goodwill                                         (3,525)         (3,525)
    Core deposit and other intangible
     assets                                            (146)           (208)
    Deferred taxes                                       27              41
                                                        ---             ---
      Average tangible common equity                 $3,800           3,102
                                                     ======           =====

    At end of quarter
    Total assets
    Total assets                                    $68,247          68,997
    Goodwill                                         (3,525)         (3,525)
    Core deposit and other intangible
     assets                                            (139)           (199)
    Deferred taxes                                       26              39
      Total tangible assets                         $64,609          65,312
                                                    =======          ======
    Total common equity
    Total equity                                     $8,232           7,612
    Preferred stock                                    (738)           (728)
    Undeclared dividends -preferred
     stock                                               (6)             (5)
      Common equity, net of undeclared
        preferred dividends                           7,488           6,879
    Goodwill                                         (3,525)         (3,525)
    Core deposit and other intangible
     assets                                            (139)           (199)
    Deferred taxes                                       26              39
      Total tangible common equity                   $3,850           3,194
                                                     ======           =====






                                                      Nine months ended
                                                        September 30
                                                        ------------
                                                         2010            2009
                                                         ----            ----
    Income statement data
    ---------------------
    In thousands, except per share
    Net income
    Net income                                       $531,719         243,073
    Amortization of core deposit and
     other
      intangible assets (1)                            27,211          28,854
    Merger-related gain (1)                                           (17,684)
    Merger-related expenses (1)                             -          50,357
      Net operating income                           $558,930         304,600
                                                     ========         =======
    Earnings per common share
    Diluted earnings per common share                   $4.10            1.84
    Amortization of core deposit and
     other
      intangible assets (1)                               .23             .25
    Merger-related gain (1)                                 -            (.15)
    Merger-related expenses (1)                             -             .43
      Diluted net operating earnings per
       common share                                     $4.33            2.37
                                                        =====            ====
    Other expense
    Other expense                                  $1,445,563       1,502,112
    Amortization of core deposit and
     other
      intangible assets                               (44,834)        (47,525)
    Merger-related expenses                                 -         (82,893)
      Noninterest operating expense                $1,400,729       1,371,694
                                                   ==========       =========
    Merger-related expenses
    Salaries and employee benefits             $            -           9,649
    Equipment and net occupancy                             -           2,430
    Printing, postage and supplies                          -           3,444
    Other costs of operations                               -          67,370
      Total                                    $            -          82,893
                                                          ===          ======


    Balance sheet data
    ------------------
    In millions
    Average assets
    Average assets                                    $68,339          66,984
    Goodwill                                           (3,525)         (3,349)
    Core deposit and other intangible
     assets                                              (160)           (191)
    Deferred taxes                                         30              31
                                                          ---             ---
      Average tangible assets                         $64,684          63,475
                                                      =======          ======
    Average common equity
    Average total equity                               $8,030           7,145
    Preferred stock                                      (735)           (644)
      Average common equity                             7,295           6,501
    Goodwill                                           (3,525)         (3,349)
    Core deposit and other intangible
     assets                                              (160)           (191)
    Deferred taxes                                         30              31
                                                          ---             ---
      Average tangible common equity                   $3,640           2,992
                                                       ======           =====

    At end of quarter
    Total assets
    Total assets
    Goodwill
    Core deposit and other intangible
     assets
    Deferred taxes
      Total tangible assets
    Total common equity
    Total equity
    Preferred stock
    Undeclared dividends -preferred
     stock
      Common equity, net of undeclared
        preferred dividends
    Goodwill
    Core deposit and other intangible
     assets
    Deferred taxes
      Total tangible common equity





    (1) After any related tax effect.

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

                                                  Three months ended
                                                  ------------------
                                         September         June        March
                                             30,            30,         31,
                                              2010           2010        2010
                                              ----           ----        ----
    Income statement data
    ---------------------
    In thousands, except per share
    Net income
    Net income                            $192,015        188,749     150,955
    Amortization of core deposit and
     other
      intangible assets (1)                  8,210          9,003       9,998
    Merger-related gain (1)                      -              -           -
    Merger-related expenses (1)                  -              -           -
      Net operating income                $200,225        197,752     160,953
                                          ========        =======     =======
    Earnings per common share
    Diluted earnings per common share        $1.48           1.46        1.15
    Amortization of core deposit and
     other
      intangible assets (1)                    .07            .07         .08
    Merger-related gain (1)                      -              -           -
    Merger-related expenses (1)                  -              -           -
      Diluted net operating earnings
       per common share                      $1.55           1.53        1.23
                                             =====           ====        ====
    Other expense
    Other expense                         $480,133        476,068     489,362
    Amortization of core deposit and
     other
      intangible assets                    (13,526)       (14,833)   (16,475)
    Merger-related expenses                      -              -           -
      Noninterest operating expense       $466,607        461,235     472,887
                                          ========        =======     =======
    Merger-related expenses
    Salaries and employee benefits     $         -              -           -
    Equipment and net occupancy                  -              -           -
    Printing, postage and supplies               -              -           -
    Other costs of operations                    -              -           -
      Total                            $         -              -           -
                                               ===            ===         ===


    Balance sheet data
    ------------------
    In millions
    Average assets
    Average assets                         $67,811         68,334      68,883
    Goodwill                                (3,525)        (3,525)     (3,525)
    Core deposit and other intangible
     assets                                   (146)          (160)       (176)
    Deferred taxes                              27             30          34
                                                              ---         ---
      Average tangible assets              $64,167         64,679      65,216
                                           =======         ======      ======
    Average common equity
    Average total equity                    $8,181          8,036       7,868
    Preferred stock                           (737)          (734)       (732)
      Average common equity                  7,444          7,302       7,136
    Goodwill                                (3,525)        (3,525)     (3,525)
    Core deposit and other intangible
     assets                                   (146)          (160)       (176)
    Deferred taxes                              27             30          34
                                                              ---         ---
      Average tangible common equity        $3,800          3,647       3,469
                                            ======          =====       =====

    At end of quarter
    Total assets
    Total assets                           $68,247         68,154      68,439
    Goodwill                                (3,525)        (3,525)     (3,525)
    Core deposit and other intangible
     assets                                   (139)          (152)       (167)
    Deferred taxes                              26             28          31
      Total tangible assets                $64,609         64,505      64,778
                                           =======         ======      ======
    Total common equity
    Total equity                            $8,232          8,102       7,916
    Preferred stock                           (738)          (735)       (733)
    Undeclared dividends -preferred
     stock                                      (6)            (7)         (6)
                                               ---            ---         ---
      Common equity, net of undeclared
        preferred dividends                  7,488          7,360       7,177
    Goodwill                                (3,525)        (3,525)     (3,525)
    Core deposit and other intangible
     assets                                   (139)          (152)       (167)
    Deferred taxes                              26             28          31
      Total tangible common equity          $3,850          3,711       3,516
                                            ======          =====       =====






                                            Three months ended
                                            ------------------
                                             December       September
                                                31,             30,
                                                 2009            2009
                                                 ----            ----
    Income statement data
    ---------------------
    In thousands, except per share
    Net income
    Net income                                136,818         127,664
    Amortization of core deposit and
     other
      intangible assets (1)                    10,152          10,270
    Merger-related gain (1)                         -         (17,684)
    Merger-related expenses (1)                 3,806           8,511
      Net operating income                    150,776         128,761
                                              =======         =======
    Earnings per common share
    Diluted earnings per common share            1.04             .97
    Amortization of core deposit and
     other
      intangible assets (1)                       .09             .09
    Merger-related gain (1)                         -            (.15)
    Merger-related expenses (1)                   .03             .07
      Diluted net operating earnings
       per common share                          1.16             .98
                                                 ====             ===
    Other expense
    Other expense                             478,451         500,056
    Amortization of core deposit and
     other
      intangible assets                       (16,730)        (16,924)
    Merger-related expenses                    (6,264)        (14,010)
      Noninterest operating expense           455,457         469,122
                                              =======         =======
    Merger-related expenses
    Salaries and employee benefits                381             870
    Equipment and net occupancy                   545           1,845
    Printing, postage and supplies                233             629
    Other costs of operations                   5,105          10,666
      Total                                     6,264          14,010
                                                =====          ======


    Balance sheet data
    ------------------
    In millions
    Average assets
    Average assets                             68,919          69,154
    Goodwill                                   (3,525)         (3,525)
    Core deposit and other intangible
     assets                                      (191)           (208)
    Deferred taxes                                 37              41
                                                  ---             ---
      Average tangible assets                  65,240          65,462
                                               ======          ======
    Average common equity
    Average total equity                        7,686           7,521
    Preferred stock                              (729)           (727)
      Average common equity                     6,957           6,794
    Goodwill                                   (3,525)         (3,525)
    Core deposit and other intangible
     assets                                      (191)           (208)
    Deferred taxes                                 37              41
                                                  ---             ---
      Average tangible common equity            3,278           3,102
                                                =====           =====

    At end of quarter
    Total assets
    Total assets                               68,880          68,997
    Goodwill                                   (3,525)         (3,525)
    Core deposit and other intangible
     assets                                      (182)           (199)
    Deferred taxes                                 35              39
      Total tangible assets                    65,208          65,312
                                               ======          ======
    Total common equity
    Total equity                                7,753           7,612
    Preferred stock                              (730)           (728)
    Undeclared dividends -preferred
     stock                                         (6)             (5)
                                                  ---             ---
      Common equity, net of undeclared
        preferred dividends                     7,017           6,879
    Goodwill                                   (3,525)         (3,525)
    Core deposit and other intangible
     assets                                      (182)           (199)
    Deferred taxes                                 35              39
      Total tangible common equity              3,345           3,194
                                                =====           =====





    (1) After any related tax effect.


    INVESTOR CONTACT:     Donald J. MacLeod
                          (716) 842-5138

    MEDIA CONTACT:        C. Michael Zabel
                          (716) 842-5385


SOURCE M&T Bank Corporation

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