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M&T Bank Corporation Announces First Quarter Profits

BUFFALO, N.Y., April 18, 2011 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended March 31, 2011.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the first quarter of 2011 rose 38% to $1.59 from $1.15 in the year-earlier quarter and were equal to the fourth quarter of 2010. GAAP-basis net income in the recent quarter was $206 million, compared with $151 million in the first quarter of 2010 and $204 million in 2010's final quarter.  GAAP-basis net income for the initial 2011 quarter expressed as an annualized rate of return on average assets and average common shareholders' equity was 1.23% and 10.16%, respectively, improved from .89% and 7.86%, respectively, in the first quarter of 2010 and from 1.18% and 10.03%, respectively, in the fourth quarter of 2010.

The recent quarter's earnings as compared with the first quarter of 2010 reflect higher net interest income, resulting from a widening of the net interest margin, lower credit costs and significantly higher noninterest income.  Contributing to the rise in noninterest income were gains from the sale of investment securities, predominantly residential mortgage-backed securities guaranteed by Fannie Mae, which increased 2011's net income by $24 million, or $.20 of diluted earnings per common share.  Realized securities gains were not significant in the first and fourth quarters of 2010.  However, net income during 2010's fourth quarter reflected an after-tax gain of $17 million, or $.14 of diluted earnings per common share, related to the FDIC-assisted acquisition of certain assets and liabilities of K Bank.

Reflecting on the recent quarter's performance, Rene F. Jones, Executive Vice President and Chief Financial Officer, commented, "M&T experienced a positive start to 2011 by recording solid financial results in the first quarter.  Exclusive of net securities gains and losses, revenue showed noticeable improvement from last year's first quarter, even more impressive when considering the negative impact regulatory changes had on fee income from deposit service charges.  We are also encouraged by continuing improved credit quality, which resulted in lower credit costs in the recent quarter.  Although nonperforming assets remain at historically high levels, we have seen some encouraging signs of improving economic conditions within M&T's footprint.  In addition, the generation of capital continued at a healthy rate this quarter, as evidenced by a rise in our tangible common capital ratio to 6.44% at March 31, 2011 from 6.19% at the 2010 year-end."

Supplemental Reporting of Non-GAAP Results of Operations.  M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains and expenses associated with merging acquired operations into M&T, since such items are considered by management to be "nonoperating" in nature.  Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.  Reconciliations of GAAP to non-GAAP measures are provided in the financial tables included herein.

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $1.67 in the recent quarter, up from $1.23 and $1.52 in the first and fourth quarters of 2010, respectively.  Net operating income for the quarter ended March 31, 2011 rose to $216 million, improved from $161 million and $196 million in the quarters ended March 31, 2010 and December 31, 2010, respectively.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.36% and 20.16%, respectively, in the initial quarter of 2011, up from 1.00% and 17.34% in the first quarter of 2010 and 1.20% and 18.43% in the final 2010 quarter.

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income increased 2% to $575 million in the first quarter of 2011 from $562 million in the year-earlier quarter.  That improvement reflects a 14 basis point widening of the net interest margin, partially offset by a lower level of average earning assets, which declined $900 million or 1% to $59.4 billion from $60.3 billion in the first quarter of 2010.  The net interest margin was 3.92% in the recent quarter, compared with 3.78% in the year-earlier quarter.  The most significant factors for the higher net interest margin were lower interest rates paid on deposits.  Taxable-equivalent net interest income totaled $580 million in the fourth quarter of 2010.  Despite an $830 million increase in average loans outstanding and a seven basis point widening of the net interest margin, the 1% decline in such income in the recent quarter as compared with 2010's fourth quarter largely reflects the fewer number of days in the first quarter of 2011.

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $75 million in the first quarter of 2011, compared with $105 million and $85 million in the first and fourth quarters of 2010, respectively.  Net charge-offs of loans during the recent quarter were $74 million, down from $95 million in the first quarter of 2010 and $77 million in the final 2010 quarter.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .58% and .74% in the initial quarters of 2011 and 2010, respectively, and .60% in the last quarter of 2010.  

Loans classified as nonaccrual totaled $1.21 billion, or 2.32% of total loans at March 31, 2011, improved from $1.24 billion or 2.38% at December 31, 2010 and $1.34 billion or 2.60% at March 31, 2010.  The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.73% at March 31, 2011, improved from 2.79% and 2.78% at December 31, 2010 and March 31, 2010, respectively.

Loans past due 90 days or more and accruing interest totaled $264 million at the end of the recently completed quarter, including loans guaranteed by government-related entities of $215 million.  Such past due loans were $270 million and $203 million at December 31, 2010 and March 31, 2010, respectively, including $214 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 $904 million at March 31, 2011, compared with $903 million at December 31, 2010 and $891 million at March 31, 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 carryover of the acquired entity's allowance for credit losses.  Excluding the impact of loans obtained in 2009 and 2010 acquisition transactions, the allowance-to-legacy loan ratio was 1.81% at March 31, 2011, compared with 1.82% and 1.86% at December 31, 2010 and March 31, 2010, respectively.  

Noninterest Income and Expense. Noninterest income totaled $314 million in the first quarter of 2011, compared with $258 million and $287 million in the first and fourth quarters of 2010, respectively.  Reflected in those amounts were net gains on investment securities of $23 million in the initial 2011 quarter, compared with net losses from investment securities of $26 million and $27 million in the first and fourth quarters of 2010, respectively.  The net securities gains in the recent quarter resulted from $39 million of gains realized on the sale of investment securities available for sale having an amortized cost of approximately $484 million.  In response to strong growth in average loans and in anticipation of the impending acquisition of Wilmington Trust Corporation, M&T sold the securities in order to manage its forecasted balance sheet size and resultant capital ratios.  Partially offsetting those securities gains were $16 million of other-than-temporary impairment charges related to certain of M&T's holdings of privately issued collateralized mortgage obligations.  The net losses on investment securities during the first and fourth quarters of 2010 were predominantly due to other-than-temporary impairment charges, also related to certain of M&T's privately issued collateralized mortgage obligations.  Also reflected in noninterest income in the fourth quarter of 2010 was a $28 million gain realized on the FDIC-assisted acquisition of select assets and liabilities of K Bank.

Excluding gains and losses from investment securities in all periods and the gain recorded in 2010's final quarter related to the K Bank transaction, noninterest income of $291 million in the recently completed quarter was improved from $284 million in the first quarter of 2010 and $286 million in the final 2010 quarter.  Contributing to the rise from the year-earlier quarter were higher commercial mortgage banking revenues, letter of credit and other credit-related fees, trading account and foreign exchange gains, and other operating revenues, partially offset by lower service charges on consumer deposit accounts.  The improvement in such income during the recent quarter as compared with the final 2010 quarter was largely due to higher residential mortgage banking revenues, partially offset by a decline in trading account and foreign exchange gains.  Residential mortgage banking revenues in the fourth quarter of 2010 were negatively impacted by increased settlements related to M&T's obligation to repurchase previously sold loans.  Charges associated with the obligation to repurchase previously sold loans were not significant in the recent quarter.  Also contributing to the improved revenues in 2011 were higher gains on residential real estate loans and commitments to originate loans to be sold as compared with the immediately preceding quarter.  Those higher gains reflect M&T's decision in the recent quarter to resume selling the majority of its originated residential real estate loans.

Noninterest expense in the first quarter of 2011 totaled $500 million, compared with $489 million and $469 million in the first and fourth quarters of 2010, respectively.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $483 million in the recently completed quarter, $473 million in the first quarter of 2010 and $455 million in the final 2010 quarter.  The higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was due largely to increased costs for advertising, processing and other professional services.  The increase in expenses from the fourth quarter of 2010 was largely the result of seasonally higher costs for stock-based compensation, payroll-related taxes and employer contributions for retirement savings plan benefits related to 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 from bank investment securities and merger-related gains), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 55.8% in the first quarter of 2011, compared with 55.9% in the year-earlier quarter and 52.5% in the fourth quarter of 2010.

Balance Sheet.  M&T had total assets of $67.9 billion at March 31, 2011, compared with $68.4 billion a year earlier.  Loans and leases, net of unearned discount, were $52.1 billion at the recent quarter-end, up $675 million from $51.4 billion at March 31, 2010 and $128 million higher than $52.0 billion at December 31, 2010.  Total deposits rose 6% to $50.5 billion at March 31, 2011 from $47.5 billion a year earlier and were up 1% from $49.8 billion at December 31, 2010.

Total shareholders' equity increased 7% to $8.5 billion at March 31, 2011 from $7.9 billion at March 31, 2010, representing 12.53% and 11.57%, respectively, of total assets.  Common shareholders' equity was $7.8 billion, or $64.43 per share at March 31, 2011, up from $7.2 billion, or $60.40 per share, a year earlier.  Tangible equity per common share rose to $34.38 at March 31, 2011 from $29.59 a year earlier.  Common shareholders' equity per share and tangible equity per common share were $63.54 and $33.26, respectively, at December 31, 2010. In the calculation of tangible equity per common share, common shareholders' equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances.  M&T's tangible common equity to tangible assets ratio was 6.44% at March 31, 2011, compared with 5.43% and 6.19% at March 31, 2010 and December 31, 2010, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 1:30 p.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 #59879931.  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 Tuesday, April 19, 2011 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to the ID #59879931.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/conference.cfm.

M&T is a financial 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,


March 31




except per share


2011


2010


Change










Performance
















Net income

$

206,273


150,955


37

%

Net income available to common shareholders


190,121


136,431


39










Per common share:








 Basic earnings

$

1.59


1.16


37

%

 Diluted earnings


1.59


1.15


38


 Cash dividends

$

.70


.70


-










Common shares outstanding:








 Average - diluted (1)


119,852


118,256


1

%

 Period end (2)


120,410


118,823


1










Return on (annualized):








 Average total assets


1.23

%

.89

%



 Average common shareholders' equity  


10.16

%

7.86

%











Taxable-equivalent net interest income

$

575,131


562,257


2

%









Yield on average earning assets


4.60

%

4.59

%



Cost of interest-bearing liabilities


.91

%

1.04

%



Net interest spread


3.69

%

3.55

%



Contribution of interest-free funds


.23

%

.23

%



Net interest margin  


3.92

%

3.78

%











Net charge-offs to average total








 net loans (annualized)


.58

%

.74

%











Net operating results (3)
















Net operating income  

$

216,360


160,953


34

%

Diluted net operating earnings per common share


1.67


1.23


36


Return on (annualized):








 Average tangible assets


1.36

%

1.00

%



 Average tangible common equity


20.16

%

17.34

%



Efficiency ratio


55.75

%

55.88

%






























At March 31





Loan quality


2011


2010


Change










Nonaccrual loans

$

1,211,111


1,339,992


-10

%

Real estate and other foreclosed assets


218,203


95,362


129

%

 Total nonperforming assets

$

1,429,314


1,435,354


-

%









Accruing loans past due 90 days or more

$

264,480


203,443


30

%









Renegotiated loans

$

241,190


220,885


9

%









Government guaranteed loans included in totals








 above:








 Nonaccrual loans

$

69,353


37,048


87

%

 Accruing loans past due 90 days or more


214,505


194,523


10

%









Purchased impaired loans (4):








 Outstanding customer balance

$

206,253


148,686


39

%

 Carrying amount


88,589


73,890


20

%









Nonaccrual loans to total net loans


2.32

%

2.60

%











Allowance for credit losses to:








 Legacy loans


1.81

%

1.86

%



 Total loans


1.73

%

1.73

%



































(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,


March 31,


December 31, 


September 30, 


June 30, 


March 31, 

except per share


2011


2010  


2010  


2010  


2010  

















Performance
































Net income

$

206,273



204,442



192,015



188,749



150,955


Net income available to common shareholders


190,121



189,678



176,789



173,597



136,431


















Per common share:
















 Basic earnings

$

1.59



1.59



1.49



1.47



1.16


 Diluted earnings


1.59



1.59



1.48



1.46



1.15


 Cash dividends

$

.70



.70



.70



.70



.70


















Common shares outstanding:
















 Average - diluted (1)


119,852



119,503



119,155



118,878



118,256


 Period end (2)


120,410



119,774



119,435



119,161



118,823


















Return on (annualized):
















 Average total assets


1.23

%


1.18

%


1.12

%


1.11

%


.89

%

 Average common shareholders' equity


10.16

%


10.03

%


9.56

%


9.67

%


7.86

%

















Taxable-equivalent net interest income

$

575,131



580,227



575,733



573,332



562,257


















Yield on average earning assets


4.60

%


4.58

%


4.65

%


4.63

%


4.59

%

Cost of interest-bearing liabilities


.91

%


.97

%


1.03

%


1.04

%


1.04

%

Net interest spread


3.69

%


3.61

%


3.62

%


3.59

%


3.55

%

Contribution of interest-free funds


.23

%


.24

%


.25

%


.25

%


.23

%

Net interest margin


3.92

%


3.85

%


3.87

%


3.84

%


3.78

%

















Net charge-offs to average total
















 net loans (annualized)


.58

%


.60

%


.73

%


.64

%


.74

%

















Net operating results (3)
































Net operating income

$

216,360



196,235



200,225



197,752



160,953


Diluted net operating earnings per common share


1.67



1.52



1.55



1.53



1.23


Return on (annualized):
















 Average tangible assets


1.36

%


1.20

%


1.24

%


1.23

%


1.00

%

 Average tangible common equity


20.16

%


18.43

%


19.58

%


20.36

%


17.34

%

Efficiency ratio


55.75

%


52.55

%


53.40

%


53.06

%


55.88

%

























March 31,


December 31,


September 30, 


June 30, 


March 31, 

Loan quality


2011


2010


2010  


2010  


2010  

















Nonaccrual loans

$

1,211,111



1,239,194



1,099,560



1,090,135



1,339,992


Real estate and other foreclosed assets


218,203



220,049



192,600



192,631



95,362


 Total nonperforming assets

$

1,429,314



1,459,243



1,292,160



1,282,766



1,435,354


















Accruing loans past due 90 days or more

$

264,480



269,593



214,769



203,081



203,443


















Renegotiated loans

$

241,190



233,342



233,671



228,847



220,885


















Government guaranteed loans included in totals above:































 Nonaccrual loans

$

69,353



56,787



38,232



40,271



37,048


 Accruing loans past due 90 days or more


214,505



214,111



194,223



187,682



194,523


















Purchased impaired loans (4):
















 Outstanding customer balance

$

206,253



219,477



113,964



130,808



148,686


 Carrying amount


88,589



97,019



52,728



61,524



73,890


















Nonaccrual loans to total net loans


2.32

%


2.38

%


2.16

%


2.13

%


2.60

%

















Allowance for credit losses to:
















 Legacy loans


1.81

%


1.82

%


1.86

%


1.86

%


1.86

%

 Total loans


1.73

%


1.74

%


1.76

%


1.75

%


1.73

%

































































(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






March 31




Dollars in thousands


2011


2010


Change










Interest income

$

667,483


676,386


-1

%

Interest expense


98,679


120,052


-18










Net interest income


568,804


556,334


2










Provision for credit losses


75,000


105,000


-29










Net interest income after provision for credit losses


493,804


451,334


9










Other income








    Mortgage banking revenues


45,156


41,476


9


    Service charges on deposit accounts


109,731


120,295


-9


    Trust income


29,321


30,928


-5


    Brokerage services income


14,296


13,106


9


    Trading account and foreign exchange gains


8,279


4,699


76


    Gain on bank investment securities


39,353


459


-


    Other-than-temporary impairment losses








       recognized in earnings


(16,041)


(26,802)


-


    Equity in earnings of Bayview Lending Group LLC


(6,678)


(5,714)


-


    Other revenues from operations


91,003


79,259


15


         Total other income


314,420


257,706


22










Other expense








    Salaries and employee benefits


266,090


264,046


1


    Equipment and net occupancy


56,663


55,401


2


    Printing, postage and supplies


9,202


9,043


2


    Amortization of core deposit and other








       intangible assets


12,314


16,475


-25


    FDIC assessments


19,094


21,348


-11


    Other costs of operations


136,208


123,049


11


         Total other expense


499,571


489,362


2










Income before income taxes


308,653


219,678


41










Applicable income taxes


102,380


68,723


49










Net income

$

206,273


150,955


37

%



M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend


















Three months ended



March 31,


December 31, 


September 30, 


June 30, 


March 31,

Dollars in thousands


2011


2010 


2010 


2010 


2010
















Interest income

$

667,483


682,725


685,900


684,784


676,386

Interest expense


98,679


108,628


116,032


117,557


120,052
















Net interest income


568,804


574,097


569,868


567,227


556,334
















Provision for credit losses


75,000


85,000


93,000


85,000


105,000
















Net interest income after provision for credit losses


493,804


489,097


476,868


482,227


451,334
















Other income















    Mortgage banking revenues


45,156


35,013


61,052


47,084


41,476

    Service charges on deposit accounts


109,731


111,129


117,733


128,976


120,295

    Trust income  


29,321


31,031


30,485


30,169


30,928

    Brokerage services income


14,296


11,648


12,127


12,788


13,106

    Trading account and foreign exchange gains


8,279


12,755


6,035


3,797


4,699

    Gain on bank investment securities


39,353


861


1,440


10


459

    Other-than-temporary impairment losses















       recognized in earnings


(16,041)


(27,567)


(9,532)


(22,380)


(26,802)

    Equity in earnings of Bayview Lending Group LLC


(6,678)


(7,415)


(6,460)


(6,179)


(5,714)

    Other revenues from operations


91,003


119,483


77,019


79,292


79,259

         Total other income


314,420


286,938


289,899


273,557


257,706
















Other expense















    Salaries and employee benefits


266,090


243,413


246,389


245,861


264,046

    Equipment and net occupancy


56,663


50,879


54,353


55,431


55,401

    Printing, postage and supplies


9,202


8,435


7,820


8,549


9,043

    Amortization of core deposit and other















       intangible assets


12,314


13,269


13,526


14,833


16,475

    FDIC assessments


19,094


18,329


18,039


21,608


21,348

    Other costs of operations


136,208


134,949


140,006


129,786


123,049

         Total other expense


499,571


469,274


480,133


476,068


489,362
















Income before income taxes


308,653


306,761


286,634


279,716


219,678
















Applicable income taxes


102,380


102,319


94,619


90,967


68,723
















Net income

$

206,273


204,442


192,015


188,749


150,955



M&T BANK CORPORATION

Condensed Consolidated Balance Sheet











March 31




Dollars in thousands


2011


2010


Change










ASSETS
















Cash and due from banks

$

972,005


1,033,269


-6

%









Interest-bearing deposits at banks


100,101


121,305


-17










Federal funds sold and agreements to resell securities


10,300


10,400


-1










Trading account assets


413,737


403,476


3










Investment securities


6,507,165


8,104,646


-20










Loans and leases:
















  Commercial, financial, etc


13,826,299


13,220,181


5


  Real estate - commercial


20,891,615


20,724,118


1


  Real estate - consumer


6,154,960


5,664,159


9


  Consumer


11,245,807


11,835,583


-5


    Total loans and leases, net of unearned discount


52,118,681


51,444,041


1


       Less: allowance for credit losses


903,703


891,265


1










 Net loans and leases


51,214,978


50,552,776


1










Goodwill


3,524,625


3,524,625


-










Core deposit and other intangible assets


113,603


167,545


-32










Other assets


5,024,694


4,521,180


11










 Total assets

$

67,881,208


68,439,222


-1

%

















LIABILITIES AND SHAREHOLDERS' EQUITY
















Noninterest-bearing deposits  

$

15,219,562


13,622,819


12

%









Interest-bearing deposits


34,264,867


33,125,761


3










Deposits at Cayman Islands office


1,063,670


789,825


35










 Total deposits


50,548,099


47,538,405


6










Short-term borrowings


504,676


1,870,763


-73










Accrued interest and other liabilities


1,015,495


1,048,473


-3










Long-term borrowings


7,305,420


10,065,894


-27










 Total liabilities


59,373,690


60,523,535


-2










Shareholders' equity:
















  Preferred


743,385


732,769


1


  Common (1)


7,764,133


7,182,918


8










    Total shareholders' equity


8,507,518


7,915,687


7










 Total liabilities and shareholders' equity

$

67,881,208


68,439,222


-1

%

















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $197.5 million at March 31, 2011 and $255.2 million at March 31, 2010.



M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend






March 31,


December 31,



September 30,



June 30,



March 31,

Dollars in thousands


2011


2010



2010



2010



2010
















ASSETS






























Cash and due from banks

$

972,005



908,755



1,070,625



1,045,886



1,033,269
















Interest-bearing deposits at banks


100,101



101,222



401,624



117,826



121,305
















Federal funds sold and agreements to resell securities


10,300



25,000



443,700



10,000



10,400
















Trading account assets


413,737



523,834



536,702



487,692



403,476
















Investment securities


6,507,165



7,150,540



7,662,715



8,097,572



8,104,646
















Loans and leases:






























  Commercial, financial, etc


13,826,299



13,390,610



12,788,136



13,017,598



13,220,181

  Real estate - commercial


20,891,615



21,183,161



20,580,450



20,612,905



20,724,118

  Real estate - consumer


6,154,960



5,928,056



5,754,432



5,729,126



5,664,159

  Consumer


11,245,807



11,488,555



11,668,540



11,701,657



11,835,583

    Total loans and leases, net of unearned discount


52,118,681



51,990,382



50,791,558



51,061,286



51,444,041

       Less: allowance for credit losses


903,703



902,941



894,720



894,667



891,265
















 Net loans and leases


51,214,978



51,087,441



49,896,838



50,166,619



50,552,776
















Goodwill


3,524,625



3,524,625



3,524,625



3,524,625



3,524,625
















Core deposit and other intangible assets


113,603



125,917



139,186



152,712



167,545
















Other assets


5,024,694



4,573,929



4,570,822



4,550,684



4,521,180
















 Total assets

$

67,881,208



68,021,263



68,246,837



68,153,616



68,439,222































LIABILITIES AND SHAREHOLDERS' EQUITY






























Noninterest-bearing deposits

$

15,219,562



14,557,568



14,665,603



13,960,723



13,622,819
















Interest-bearing deposits


34,264,867



33,641,800



33,335,104



33,010,520



33,125,761
















Deposits at Cayman Islands office


1,063,670



1,605,916



653,916



551,428



789,825
















 Total deposits


50,548,099



49,805,284



48,654,623



47,522,671



47,538,405
















Short-term borrowings


504,676



947,432



1,211,683



2,158,957



1,870,763
















Accrued interest and other liabilities


1,015,495



1,070,701



1,157,250



1,114,615



1,048,473
















Long-term borrowings


7,305,420



7,840,151



8,991,508



9,255,529



10,065,894
















 Total liabilities


59,373,690



59,663,568



60,015,064



60,051,772



60,523,535
















Shareholders' equity:






























  Preferred


743,385



740,657



737,979



735,350



732,769

  Common (1)  


7,764,133



7,617,038



7,493,794



7,366,494



7,182,918
















    Total shareholders' equity


8,507,518



8,357,695



8,231,773



8,101,844



7,915,687
















 Total liabilities and shareholders' equity

$

67,881,208



68,021,263



68,246,837



68,153,616



68,439,222































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $197.5 million at March 31, 2011, $205.2 million at December 31, 2010, $192.6 million at September 30, 2010, $197.2 million at June 30, 2010 and $255.2 million at March 31, 2010.



M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

and Annualized Taxable-equivalent Rates



















Three months ended


Change in balance



March 31,


March 31,


December 31,


March 31, 2011 from

Dollars in millions


2011


2010


2010


March 31,


December 31,



Balance

Rate


Balance

Rate


Balance

Rate


2010


2010

ASSETS
































Interest-bearing deposits at banks

$

115

.13

%

127

.02

%

110

.15

%

-9

%


5

%

















Federal funds sold and agreements
















 to resell securities


15

.53


24

.22


780

.19


-38



-98


















Trading account assets


110

1.61


60

.80


165

.91


82



-34


















Investment securities


7,219

4.17


8,172

4.44


7,541

4.07


-12



-4


















Loans and leases, net of unearned discount
















 Commercial, financial, etc


13,573

3.93


13,408

3.88


13,013

4.07


1



4


 Real estate - commercial


21,003

4.71


20,867

4.48


20,624

4.84


1



2


 Real estate - consumer


6,054

5.06


5,742

5.31


5,910

5.15


5



2


 Consumer


11,342

5.13


11,931

5.26


11,594

5.18


-5



-2


    Total loans and leases, net


51,972

4.67


51,948

4.63


51,141

4.74


-



2


















 Total earning assets


59,431

4.60


60,331

4.59


59,737

4.58


-1



-1


















Goodwill


3,525



3,525



3,525



-



-


















Core deposit and other intangible assets


119



176



132



-32



-10


















Other assets


4,970



4,851



5,108



2



-3


















 Total assets

$

68,045



68,883



68,502



-1

%


-1

%

















































LIABILITIES AND SHAREHOLDERS' EQUITY
































Interest-bearing deposits
















 NOW accounts

$

628

.13


585

.14


608

.14


7

%


3

%

 Savings deposits


27,669

.28


25,068

.33


27,545

.31


10



-


 Time deposits


5,700

1.36


7,210

1.66


6,034

1.40


-21



-6


 Deposits at Cayman Islands office


1,182

.14


1,237

.11


809

.17


-4



46


    Total interest-bearing deposits


35,179

.45


34,100

.60


34,996

.49


3



1


















Short-term borrowings


1,344

.15


2,367

.15


1,439

.17


-43



-7


Long-term borrowings


7,368

3.26


10,160

2.74


8,141

3.14


-27



-9


















Total interest-bearing liabilities


43,891

.91


46,627

1.04


44,576

.97


-6



-2


















Noninterest-bearing deposits


14,501



13,294



14,275



9



2


















Other liabilities


1,202



1,094



1,329



10



-10


















 Total liabilities


59,594



61,015



60,180



-2



-1


















Shareholders' equity


8,451



7,868



8,322



7



2


















 Total liabilities and shareholders' equity

$

68,045



68,883



68,502



-1

%


-1

%

































Net interest spread



3.69



3.55



3.61







Contribution of interest-free funds



.23



.23



.24







Net interest margin



3.92

%


3.78

%


3.85

%








M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend














Three months ended



March 31,


December 31,


September 30,


June 30,


March 31,



2011


2010


2010


2010


2010

Income statement data











In thousands, except per share











Net income











Net income

$

206,273


204,442


192,015


188,749


150,955

Amortization of core deposit and other











 intangible assets (1)


7,478


8,054


8,210


9,003


9,998

Merger-related gain (1)


-


(16,730)


-


-


-

Merger-related expenses (1)


2,609


469


-


-


-

 Net operating income

$

216,360


196,235


200,225


197,752


160,953

Earnings per common share











Diluted earnings per common share

$

1.59


1.59


1.48


1.46


1.15

Amortization of core deposit and other











 intangible assets (1)


.06


.07


.07


.07


.08

Merger-related gain (1)


-


(0.14)


-


-


-

Merger-related expenses (1)


.02


-


-


-


-

 Diluted net operating earnings per common share

$

1.67


1.52


1.55


1.53


1.23

Other expense











Other expense

$

499,571


469,274


480,133


476,068


489,362

Amortization of core deposit and other











 intangible assets


(12,314)


(13,269)


(13,526)


(14,833)


(16,475)

Merger-related expenses


(4,295)


(771)


-


-


-

 Noninterest operating expense

$

482,962


455,234


466,607


461,235


472,887

Merger-related expenses











Salaries and employee benefits

$

7


7


-


-


-

Equipment and net occupancy


79


44


-


-


-

Printing, postage and supplies


147


74


-


-


-

Other costs of operations


4,062


646


-


-


-

 Total

$

4,295


771


-


-


-























Balance sheet data











In millions











Average assets











Average assets

$

68,045


68,502


67,811


68,334


68,883

Goodwill


(3,525)


(3,525)


(3,525)


(3,525)


(3,525)

Core deposit and other intangible assets


(119)


(132)


(146)


(160)


(176)

Deferred taxes


22


24


27


30


34

 Average tangible assets

$

64,423


64,869


64,167


64,679


65,216

Average common equity











Average total equity

$

8,451


8,322


8,181


8,036


7,868

Preferred stock


(743)


(740)


(737)


(734)


(732)

 Average common equity


7,708


7,582


7,444


7,302


7,136

Goodwill


(3,525)


(3,525)


(3,525)


(3,525)


(3,525)

Core deposit and other intangible assets


(119)


(132)


(146)


(160)


(176)

Deferred taxes


22


24


27


30


34

 Average tangible common equity  

$

4,086


3,949


3,800


3,647


3,469












At end of quarter











Total assets











Total assets

$

67,881


68,021


68,247


68,154


68,439

Goodwill


(3,525)


(3,525)


(3,525)


(3,525)


(3,525)

Core deposit and other intangible assets


(113)


(126)


(139)


(152)


(167)

Deferred taxes


20


23


26


28


31

 Total tangible assets

$

64,263


64,393


64,609


64,505


64,778

Total common equity











Total equity

$

8,508


8,358


8,232


8,102


7,916

Preferred stock


(743)


(741)


(738)


(735)


(733)

Undeclared dividends - preferred stock


(7)


(6)


(6)


(7)


(6)

 Common equity, net of undeclared











   preferred dividends


7,758


7,611


7,488


7,360


7,177

Goodwill


(3,525)


(3,525)


(3,525)


(3,525)


(3,525)

Core deposit and other intangible assets


(113)


(126)


(139)


(152)


(167)

Deferred taxes


20


23


26


28


31

 Total tangible common equity  

$

4,140


3,983


3,850


3,711


3,516























(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

News Provided by Acquire Media

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