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M&T Bank Corporation Announces Third Quarter Profits

BUFFALO, N.Y., Oct. 19, 2011 /PRNewswire/ -- M&T Bank Corporation ("M&T") (NYSE: MTB) today reported its results of operations for the quarter ended September 30, 2011.

GAAP Results of Operations.  Diluted earnings per common share measured in accordance with generally accepted accounting principles ("GAAP") for the third quarter of 2011 were $1.32, compared with $1.48 in the year-earlier quarter.  GAAP-basis net income in the recent quarter aggregated $183 million, compared with $192 million in the third quarter of 2010.  GAAP-basis net income for the third quarter of 2011 expressed as an annualized rate of return on average assets and average common shareholders' equity was .94% and 7.84%, respectively, compared with 1.12% and 9.56%, respectively, in the year-earlier quarter.

As compared with the third quarter of 2010, the recent quarter's performance reflected higher net interest income, a lower provision for credit losses and significantly higher trust income.  Those positive factors were muted by higher noninterest expenses and lower residential mortgage banking revenues.  The increased net interest income, trust income and noninterest expenses were each predominantly related to the acquisition of Wilmington Trust Corporation ("Wilmington Trust") on May 16, 2011.  Included in noninterest expenses in the recent quarter were merger-related expenses associated with the Wilmington Trust acquisition of $16 million, after applicable tax effect, or $.13 of diluted earnings per common share.  Such expenses were related to systems conversions and other costs of integrating operations and introducing Wilmington Trust's former customers to M&T's products and services.  There were no merger-related expenses in the year-earlier quarter.  

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, were $1.53 in the recent quarter, down 1% from $1.55 in the third quarter of 2010.  Net operating income during the third quarter of 2011 was $210 million, up 5% from $200 million in the year-earlier quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income was 1.14% and 16.26%, respectively, in the recent quarter, compared with 1.24% and 19.58% in the third quarter of 2010.

Commenting on M&T's financial results in the third quarter of 2011, Rene F. Jones, Executive Vice President and Chief Financial Officer, said, "The recent quarter's results reflect the impact of M&T's acquisition of Wilmington Trust.  Notably, in late-August the major loan and deposit systems of Wilmington Trust were successfully converted to those of M&T, culminating a significant resource commitment.  Now that the conversions are behind us, we are well positioned to turn our attention towards achieving the economic benefits from combining the organizations."  

Further commenting on recent quarter highlights, Mr. Jones noted, "Despite the continued challenging economic environment and turbulent markets, which dampened our fee income relative to the second quarter, we experienced a number of positive trends.  We were pleased with the credit performance for the period.  Specifically, net charge-offs declined for the fourth consecutive quarter.  We also continued to experience solid growth in customer deposits."

Taxable-equivalent Net Interest Income.  Taxable-equivalent net interest income totaled $623 million in the third quarter of 2011, up from $576 million in the year-earlier period and $593 million in the second quarter of 2011.  The improvement in such income from the prior periods resulted from higher average earning assets, partially offset by a narrowing of the net interest margin.  The net interest margin was 3.68% in the recent quarter, compared with 3.87% in the third quarter of 2010 and 3.75 percent in the second quarter of 2011.  The higher levels of average earning assets in the two most recent quarters as compared with the third quarter of 2010 were predominantly due to the impact of the Wilmington Trust acquisition, which added approximately $9.6 billion of earning assets on the May 16, 2011 acquisition date.  The narrowing of the net interest margin in the recent quarter as compared with the year-earlier quarter and the second 2011 quarter also reflected the impact of the Wilmington Trust transaction, including significantly higher earning balances on deposit with the Federal Reserve.  

Provision for Credit Losses/Asset Quality.  The provision for credit losses was $58 million in the recent quarter, improved from $93 million in the third quarter of 2010 and $63 million in 2011's second quarter.  Net charge-offs of loans totaled $57 million during the third quarter of 2011, compared with $93 million and $59 million in the quarters ended September 30, 2010 and June 30, 2011, respectively.  Expressed as an annualized percentage of average loans outstanding, net charge-offs were .39% and .73% in the third quarter of 2011 and 2010, respectively, and .43% in the second quarter of 2011.

Effective September 30, 2011, M&T has begun to separately report "other acquired impaired loans."  M&T defines other acquired impaired loans as loans that ceased performing in accordance with their contractual terms and became impaired subsequent to the acquisition date.  Nevertheless, in accordance with GAAP, such loans are included in accounting pools which continue to accrue interest.  Other acquired impaired loans, which had previously been aggregated with nonaccrual loans, totaled $218 million or .37% of total loans at September 30, 2011, compared with $141 million or .24% at June 30, 2011 and $98 million or .19% at September 30, 2010.  The increase in such loans from June 30, 2011 was due to loans obtained in the acquisition of Wilmington Trust.

Nonaccrual loans, which exclude other acquired impaired loans, were little changed from June 30, 2011.  Such loans totaled $1.11 billion and $1.12 billion at September 30 and June 30, 2011, respectively, or 1.91% of total loans at each of those dates, compared with $1.00 billion or 1.97% at September 30, 2010.  

Assets taken in foreclosure of defaulted loans were $150 million at September 30, 2011, down from $193 million at September 30, 2010 and $159 million at June 30, 2011.  The decrease in such assets at the two most recent quarter-ends as compared with September 30, 2010 resulted from the sale during 2011's second quarter of a commercial real estate property in New York City with a carrying value of $99 million.  Reflected in assets taken in foreclosure of defaulted loans at September 30 and June 30, 2011 were $51 million and $57 million, respectively, of assets related to the Wilmington Trust acquisition.  

Loans past due 90 days or more and accruing interest totaled $310 million at September 30, 2011, down from $373 million at June 30, 2011.  Included in such past due but accruing loans at the two most recent quarter-ends were $64 million and $130 million, respectively, of loans obtained in the Wilmington Trust acquisition.  At September 30, 2010, loans past due 90 days or more and accruing interest were $215 million.  Included in this category were $212 million, $207 million and $194 million of loans guaranteed by government-related entities at September 30, 2011, June 30, 2011 and September 30, 2010, respectively.

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.  As a result of those analyses, the allowance for credit losses was $909 million at September 30, 2011, compared with $895 million at September 30, 2010 and $908 million at June 30, 2011.  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 acquisition transactions subsequent to 2008, the allowance-to-legacy loan ratio was 1.79% at September 30, 2011, compared with 1.86% at September 30, 2010 and 1.80% at June 30, 2011.

Noninterest Income and Expense.  Noninterest income totaled $368 million in the recent quarter, compared with $290 million and $502 million in the third quarter of 2010 and the second quarter of 2011, respectively.  Reflected in such income were net pre-tax losses from investment securities of $10 million and $8 million in the recent quarter and the third quarter of 2010, respectively, and net pre-tax gains from investment securities of $84 million in the second quarter of 2011.  

Excluding gains and losses from investment securities in all periods and the non-taxable gain of $65 million recorded in the second quarter of 2011 related to the Wilmington Trust acquisition, noninterest income in the third quarter of 2011 aggregated $378 million, up from $298 million in the third quarter of 2010 and $353 million in 2011's second quarter.  Contributing to those increases were significantly higher trust income, predominantly due to the Wilmington Trust transaction, partially offset by a decline in residential mortgage banking revenues.  That decline reflected M&T's decision to retain the majority of residential mortgage loan originations in the recent quarter rather than selling them.  

Noninterest expense in the third quarter of 2011 aggregated $662 million, compared with $480 million in the year-earlier quarter and $577 million in the second quarter of 2011.  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 $619 million in the recent quarter, compared with $467 million in the third quarter of 2010 and $525 million in 2011's second quarter.  The most significant factor for the higher levels of operating expenses in the two most recent quarters as compared with the third quarter of 2010 was the impact of the operations obtained in the Wilmington Trust acquisition mid-way through 2011'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 gains), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 61.8% in the recent quarter, compared with 53.4% and 55.6% in the year-earlier quarter and the second quarter of 2011, respectively.  The higher ratio in the recent quarter reflects expenses associated with the operations obtained in the Wilmington Trust acquisition.  M&T should begin to realize certain cost savings related to that acquisition transaction during the final quarter of 2011, but expects that the full realization of operating efficiencies will not happen until 2012.

Balance Sheet.  M&T had total assets of $77.9 billion at September 30, 2011, compared with $68.2 billion at September 30, 2010.  Loans and leases, net of unearned discount, were $58.4 billion at September 30, 2011, compared with $50.8 billion a year earlier.  Total deposits aggregated $59.5 billion at the recent quarter-end, up 22% from $48.7 billion at September 30, 2010.  

Total shareholders' equity rose 14% to $9.4 billion at September 30, 2011 from $8.2 billion a year earlier, representing 12.04% and 12.06%, respectively, of total assets.  Common shareholders' equity was $8.5 billion, or $67.70 per share, at September 30, 2011, compared with $7.5 billion, or $62.69 per share, at September 30, 2010.  Tangible equity per common share rose 18% to $38.11 at September 30, 2011 from $32.23 at September 30, 2010.  Common shareholders' equity per share and tangible equity per common share were $66.71 and $37.00, respectively, at June 30, 2011.  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 6.46% at September 30, 2011, compared with 5.96% and 6.28% at September 30, 2010 and June 30, 2011, respectively.  M&T's estimated Tier 1 common ratio rose to 6.89% at September 30, 2011, improved from 6.42% and 6.67% at September 30, 2010 and June 30, 2011, respectively.

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 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 #18665770.  The conference call will be webcast live on M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available until Friday, October 21, 2011 by calling (800)585-8367, or (404)537-3406 for international participants, and by making reference to ID #18665770.  The event will also be archived and available by 5:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.

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

Forward-Looking Statements.  This news release contains forward-looking statements that are based on current expectations, estimates and projections about M&T's business, management's beliefs and assumptions made by management.  These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Future Factors") which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements.  In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

INVESTOR CONTACT:

Donald J. MacLeod


(716) 842-5138



MEDIA CONTACT:

C. Michael Zabel


(716) 842-5385





















M&T BANK CORPORATION

Financial Highlights




Three months ended







Nine months ended




Amounts in thousands,



September 30







September 30




except per share



2011


2010


Change





2011


2010


Change




















Performance




































Net income


$

183,108


192,015


-5

%



$

711,739


531,719


34

%

Net income available to common shareholders



164,671


176,789


-7





651,966


486,831


34




















Per common share:


















 Basic earnings


$

1.32


1.49


-11

%



$

5.34


4.12


30

%

 Diluted earnings



1.32


1.48


-11





5.32


4.10


30


 Cash dividends


$

.70


.70


-




$

2.10


2.10


-




















Common shares outstanding:


















 Average - diluted (1)



124,860


119,155


5

%




122,521


118,766


3

%

 Period end (2)



125,678


119,435


5





125,678


119,435


5




















Return on (annualized):


















 Average total assets  



.94

%

1.12

%






1.31

%

1.04

%



 Average common shareholders' equity  



7.84

%

9.56

%






10.94

%

9.05

%





















Taxable-equivalent net interest income


$

623,265


575,733


8

%



$

1,791,066


1,711,322


5

%



















Yield on average earning assets



4.29

%

4.65

%






4.42

%

4.62

%



Cost of interest-bearing liabilities



.86

%

1.03

%






.89

%

1.04

%



Net interest spread



3.43

%

3.62

%






3.53

%

3.58

%



Contribution of interest-free funds



.25

%

.25

%






.25

%

.25

%



Net interest margin



3.68

%

3.87

%






3.78

%

3.83

%





















Net charge-offs to average total


















 net loans (annualized)



.39

%

.73

%






.46

%

.70

%





















Net operating results (3)




































Net operating income  


$

209,996


200,225


5

%



$

715,843


558,930


28

%

Diluted net operating earnings per common
 share



1.53


1.55


-1





5.36


4.33


24


Return on (annualized):


















 Average tangible assets



1.14

%

1.24

%






1.39

%

1.16

%



 Average tangible common equity



16.26

%

19.58

%






20.16

%

19.13

%



Efficiency ratio



61.79

%

53.40

%






57.84

%

54.10

%

















At September 30




Loan quality


2011



2010


Change











Nonaccrual loans

$

1,113,788



1,001,454


11  

%

Real estate and other foreclosed assets


149,868



192,600


-22  

%

 Total nonperforming assets

$

1,263,656



1,194,054


6  

%










Other acquired impaired loans (4)

$

217,759



98,106


122  

%










Accruing loans past due 90 days or more (6)

$

309,966



214,769


44  

%










Renegotiated loans

$

223,233



233,671


-4  

%










Government guaranteed loans included in totals









 above:









 Nonaccrual loans

$

32,937



37,218


-12  

%

 Other acquired impaired loans


40,961



1,014


-  


 Accruing loans past due 90 days or more


211,808



194,223


9  

%










Purchased impaired loans (5):









 Outstanding customer balance

$

1,393,777



113,964


-  


 Carrying amount


703,632



52,728


-  











Nonaccrual loans to total net loans


1.91

%


1.97

%












Allowance for credit losses to:









 Legacy loans


1.79

%


1.86

%



 Total loans


1.56

%


1.76

%












(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)  Acquired loans that ceased performing in accordance with their contractual terms and became impaired subsequent to the acquisition date, but are included in accounting pools that continue to accrue interest.

(5)  Accruing loans that were impaired at acquisition date and recorded at fair value.

(6)  Excludes purchased impaired and other acquired impaired loans.



M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend




Three months ended


Amounts in thousands,



September 30,


June 30,


March 31,


December 31,


September 30,

except per share



2011


2011


2011


2010


2010


















Performance


































Net income


$

183,108



322,358



206,273



204,442



192,015


Net income available to common shareholders



164,671



297,179



190,121



189,678



176,789



















Per common share:

















 Basic earnings


$

1.32



2.43



1.59



1.59



1.49


 Diluted earnings



1.32



2.42



1.59



1.59



1.48


 Cash dividends


$

.70



.70



.70



.70



.70



















Common shares outstanding:

















 Average - diluted (1)



124,860



122,796



119,852



119,503



119,155


 Period end (2)



125,678



125,622



120,410



119,774



119,435



















Return on (annualized):

















 Average total assets  



.94

%


1.78

%


1.23

%


1.18

%


1.12

%

 Average common shareholders'
   equity



7.84

%


14.94

%


10.16

%


10.03

%


9.56

%


















Taxable-equivalent net interest
 income


$

623,265



592,670



575,131



580,227



575,733



















Yield on average earning assets



4.29

%


4.40

%


4.60

%


4.58

%


4.65

%

Cost of interest-bearing liabilities



.86

%


.89

%


.91

%


.97

%


1.03

%

Net interest spread



3.43

%


3.51

%


3.69

%


3.61

%


3.62

%

Contribution of interest-free
 funds



.25

%


.24

%


.23

%


.24

%


.25

%

Net interest margin  



3.68

%


3.75

%


3.92

%


3.85

%


3.87

%


















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



.39

%


.43

%


.58

%


.60

%


.73

%


















Net operating results (3)


































Net operating income


$

209,996



289,487



216,360



196,235



200,225


Diluted net operating earnings
 per common share



1.53



2.16



1.67



1.52



1.55


Return on (annualized):

















 Average tangible assets



1.14

%


1.69

%


1.36

%


1.20

%


1.24

%

 Average tangible common
   equity



16.26

%


24.40

%


20.16

%


18.43

%


19.58

%

Efficiency ratio



61.79

%


55.56

%


55.75

%


52.55

%


53.40

%


























September 30,


June 30,


March 31,


December 31,


September 30,

Loan quality



2011


2011


2011


2010


2010


















Nonaccrual loans


$

1,113,788



1,117,584



1,081,920



1,139,740



1,001,454


Real estate and other foreclosed
 assets



149,868



158,873



218,203



220,049



192,600


 Total nonperforming assets


$

1,263,656



1,276,457



1,300,123



1,359,789



1,194,054



















Other acquired impaired loans
 (4)


$

217,759



141,391



129,191



99,454



98,106



















Accruing loans past due 90 days
 or more (6)


$

309,966



373,197



264,480



269,593



214,769



















Renegotiated loans


$

223,233



234,726



241,190



233,342



233,671



















Government guaranteed loans
 included in totals above:

















 Nonaccrual loans


$

32,937



42,337



36,300



39,883



37,218


 Other acquired impaired loans



40,961



36,395



33,053



16,904



1,014


 Accruing loans past due 90
   days or more



211,808



207,135



214,505



214,111



194,223



















Purchased impaired loans (5):

















 Outstanding customer balance


$

1,393,777



1,473,237



206,253



219,477



113,964


 Carrying amount



703,632



752,978



88,589



97,019



52,728



















Nonaccrual loans to total net
 loans



1.91

%


1.91

%


2.08

%


2.19

%


1.97

%


















Allowance for credit losses to:

















 Legacy loans



1.79

%


1.80

%


1.81

%


1.82

%


1.86

%

 Total loans



1.56

%


1.55

%


1.73

%


1.74

%


1.76

%



































(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)  Acquired loans that ceased performing in accordance with their contractual terms and became impaired subsequent to the acquisition date, but are included in accounting pools that continue to accrue interest.


(5)  Accruing loans that were impaired at acquisition date and recorded at fair value.


(6)  Excludes purchased impaired and other acquired impaired loans.






















M&T BANK CORPORATION 

Condensed Consolidated Statement of Income 



















Three months ended






Nine months ended






September 30






September 30




Dollars in thousands


2011


2010


Change




2011


2010


Change


















Interest income

$

720,351


685,900


5

%


$

2,076,087


2,047,070


1

%

Interest expense


103,632


116,032


-11




304,362


353,641


-14


















Net interest income


616,719


569,868


8




1,771,725


1,693,429


5


















Provision for credit losses


58,000


93,000


-38




196,000


283,000


-31


















Net interest income after
















  provision for credit losses


558,719


476,868


17




1,575,725


1,410,429


12


















Other income
















    Mortgage banking revenues


38,141


61,052


-38




125,448


149,612


-16


    Service charges on deposit accounts


121,577


117,733


3




351,024


367,004


-4


    Trust income


113,652


30,485


273




218,565


91,582


139


    Brokerage services income


13,907


12,127


15




43,129


38,021


13


    Trading account and foreign exchange gains


4,176


6,035


-31




19,253


14,531


32


    Gain on bank investment securities


89


1,440


-




150,186


1,909


-


    Other-than-temporary impairment losses
















       recognized in earnings


(9,642)


(9,532)


-




(52,213)


(58,714)


-


    Equity in earnings of Bayview Lending Group LLC


(6,911)


(6,460)


-




(18,812)


(18,353)


-


    Other revenues from operations


93,393


77,019


21




347,878


235,570


48


         Total other income


368,382


289,899


27




1,184,458


821,162


44


















Other expense
















    Salaries and employee benefits


325,197


246,389


32




891,465


756,296


18


    Equipment and net occupancy


68,101


54,353


25




184,434


165,185


12


    Printing, postage and supplies


10,593


7,820


35




29,518


25,412


16


    Amortization of core deposit and other
















       intangible assets


17,401


13,526


29




44,455


44,834


-1


    FDIC assessments


26,701


18,039


48




72,404


60,995


19


    Other costs of operations


214,026


140,006


53




516,209


392,841


31


         Total other expense


662,019


480,133


38




1,738,485


1,445,563


20


















Income before income taxes


265,082


286,634


-8




1,021,698


786,028


30


















Applicable income taxes


81,974


94,619


-13




309,959


254,309


22


















Net income

$

183,108


192,015


-5

%


$

711,739


531,719


34

%



















M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend 


















Three months ended



September 30,


June 30,


March 31,


December 31,


September 30,

Dollars in thousands


2011


2011


2011


2010


2010
















Interest income

$

720,351



688,253



667,483



682,725



685,900

Interest expense


103,632



102,051



98,679



108,628



116,032
















Net interest income


616,719



586,202



568,804



574,097



569,868
















Provision for credit losses


58,000



63,000



75,000



85,000



93,000
















Net interest income after















  provision for credit losses


558,719



523,202



493,804



489,097



476,868
















Other income















    Mortgage banking revenues


38,141



42,151



45,156



35,013



61,052

    Service charges on deposit accounts


121,577



119,716



109,731



111,129



117,733

    Trust income


113,652



75,592



29,321



31,031



30,485

    Brokerage services income


13,907



14,926



14,296



11,648



12,127

    Trading account and foreign exchange gains


4,176



6,798



8,279



12,755



6,035

    Gain on bank investment securities


89



110,744



39,353



861



1,440

    Other-than-temporary impairment losses















       recognized in earnings


(9,642)



(26,530)



(16,041)



(27,567)



(9,532)

    Equity in earnings of Bayview Lending Group LLC


(6,911)



(5,223)



(6,678)



(7,415)



(6,460)

    Other revenues from operations


93,393



163,482



91,003



119,483



77,019

         Total other income


368,382



501,656



314,420



286,938



289,899
















Other expense















    Salaries and employee benefits


325,197



300,178



266,090



243,413



246,389

    Equipment and net occupancy


68,101



59,670



56,663



50,879



54,353

    Printing, postage and supplies


10,593



9,723



9,202



8,435



7,820

    Amortization of core deposit and other















       intangible assets


17,401



14,740



12,314



13,269



13,526

    FDIC assessments


26,701



26,609



19,094



18,329



18,039

    Other costs of operations


214,026



165,975



136,208



134,949



140,006

         Total other expense


662,019



576,895



499,571



469,274



480,133
















Income before income taxes


265,082



447,963



308,653



306,761



286,634
















Applicable income taxes


81,974



125,605



102,380



102,319



94,619
















Net income

$

183,108



322,358



206,273



204,442



192,015


















M&T BANK CORPORATION 

Condensed Consolidated Balance Sheet 













September 30




Dollars in thousands



2011


2010


Change











ASSETS


















Cash and due from banks


$

1,349,057


1,070,625


26

%










Interest-bearing deposits at banks



2,226,779


401,624


454











Federal funds sold and agreements
 to resell securities



5,000


443,700


-99











Trading account assets



605,557


536,702


13











Investment securities



7,173,797


7,662,715


-6











Loans and leases:


















  Commercial, financial, etc.



15,218,502


12,788,136


19


  Real estate - commercial



23,961,306


20,580,450


16


  Real estate - consumer



7,065,451


5,754,432


23


  Consumer



12,156,005


11,668,540


4


    Total loans and leases, net of unearned discount



58,401,264


50,791,558


15


       Less: allowance for credit losses



908,525


894,720


2











 Net loans and leases



57,492,739


49,896,838


15











Goodwill



3,524,625


3,524,625


-











Core deposit and other intangible assets



257,656


139,186


85











Other assets



5,228,681


4,570,822


14











 Total assets


$

77,863,891


68,246,837


14

%



















LIABILITIES AND SHAREHOLDERS' EQUITY










Noninterest-bearing deposits


$

19,637,491


14,665,603


34

%










Interest-bearing deposits



39,330,027


33,335,104


18











Deposits at Cayman Islands office



514,871


653,916


-21











 Total deposits



59,482,389


48,654,623


22











Short-term borrowings



694,398


1,211,683


-43











Accrued interest and other liabilities



1,563,121


1,157,250


35











Long-term borrowings



6,748,857


8,991,508


-25











 Total liabilities



68,488,765


60,015,064


14











Shareholders' equity:


















  Preferred



862,717


737,979


17


  Common (1)  



8,512,409


7,493,794


14











    Total shareholders' equity



9,375,126


8,231,773


14











 Total liabilities and shareholders' equity


$

77,863,891


68,246,837


14

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $192.5 million at September 30, 2011 and $192.6 million at September 30, 2010.












M&T BANK CORPORATION 

Condensed Consolidated Balance Sheet, Five Quarter Trend 










September 30,


June 30,



March 31,



December 31,



September 30,



Dollars in thousands



2011


2011



2011



2010



2010





















ASSETS




































Cash and due from banks


$

1,349,057



1,297,335



972,005



908,755



1,070,625





















Interest-bearing deposits at banks



2,226,779



2,275,450



100,101



101,222



401,624





















Federal funds sold and
 agreements to resell

 securities



5,000



415,580



10,300



25,000



443,700





















Trading account assets



605,557



502,986



413,737



523,834



536,702





















Investment securities



7,173,797



6,492,265



6,507,165



7,150,540



7,662,715





















Loans and leases:




































  Commercial, financial, etc.



15,218,502



15,040,892



13,826,299



13,390,610



12,788,136



  Real estate - commercial



23,961,306



24,263,726



20,891,615



21,183,161



20,580,450



  Real estate - consumer



7,065,451



6,970,921



6,154,960



5,928,056



5,754,432



  Consumer



12,156,005



12,265,690



11,245,807



11,488,555



11,668,540



    Total loans and leases, net of
      unearned discount



58,401,264



58,541,229



52,118,681



51,990,382



50,791,558



       Less: allowance for credit
         losses



908,525



907,589



903,703



902,941



894,720





















 Net loans and leases



57,492,739



57,633,640



51,214,978



51,087,441



49,896,838





















Goodwill



3,524,625



3,524,625



3,524,625



3,524,625



3,524,625





















Core deposit and other intangible
 assets



257,656



275,057



113,603



125,917



139,186





















Other assets



5,228,681



5,310,216



5,024,694



4,573,929



4,570,822





















 Total assets


$

77,863,891



77,727,154



67,881,208



68,021,263



68,246,837







































LIABILITIES AND SHAREHOLDERS' EQUITY




































Noninterest-bearing deposits


$

19,637,491



18,598,828



15,219,562



14,557,568



14,665,603





















Interest-bearing deposits



39,330,027



40,078,834



34,264,867



33,641,800



33,335,104





















Deposits at Cayman Islands office



514,871



551,553



1,063,670



1,605,916



653,916





















 Total deposits



59,482,389



59,229,215



50,548,099



49,805,284



48,654,623





















Short-term borrowings



694,398



567,144



504,676



947,432



1,211,683





















Accrued interest and other
 liabilities



1,563,121



1,557,685



1,015,495



1,070,701



1,157,250





















Long-term borrowings



6,748,857



7,128,916



7,305,420



7,840,151



8,991,508





















 Total liabilities



68,488,765



68,482,960



59,373,690



59,663,568



60,015,064





















Shareholders' equity:




































  Preferred



862,717



860,901



743,385



740,657



737,979



  Common (1)



8,512,409



8,383,293



7,764,133



7,617,038



7,493,794





















    Total shareholders' equity



9,375,126



9,244,194



8,507,518



8,357,695



8,231,773





















 Total liabilities and shareholders'
   equity


$

77,863,891



77,727,154



67,881,208



68,021,263



68,246,837







































(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $192.5 million at September 30, 2011, $228.8 million at June 30, 2011, $197.5 million at March 31, 2011, $205.2 million at December 31, 2010 and $192.6 million at September 30, 2010.



M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

and Annualized Taxable-equivalent Rates 




































Three months ended


Change in balance



Nine months ended 







September 30,


September 30,


June 30,


September 30, 2011 from



September 30 




Dollars in millions



2011


2010


2011


September 30,


June 30,



2011


2010


Change in





Balance


Rate


Balance


Rate


Balance


Rate


2010


2011



Balance


Rate


Balance


Rate


balance


ASSETS
































































Interest-
 bearing
 deposits
 at banks


$

1,861


.25

%

92


.15

%

804


.24

%

-

%


131

%


$

933


.24

%

100


.06

%

834

%

































Federal funds
 sold and
 agreements
 to resell
 securities



76


.14


64


.26


622


.09


20



-88




238


.10


33


.27


628


































Trading
 account
 assets



85


1.75


82


.65


101


1.32


3



-16




98


1.55


69


.79


41


































Investment
 securities



7,005


3.65


7,993


4.16


6,394


4.03


-12



10




6,872


3.95


8,180


4.29


-16


































Loans and
 leases, net of
 unearned discount
































 Commercial,
   financial, etc.



15,007


3.82


12,856


3.97


14,623


3.89


17



3




14,406


3.88


13,118


3.96


10


 Real estate -
   commercial



23,979


4.62


20,612


4.85


22,471


4.59


16



7




22,495


4.64


20,745


4.66


8


 Real estate -
   consumer



7,002


4.95


5,680


5.30


6,559


5.00


23



7




6,542


5.00


5,691


5.32


15


 Consumer



12,200


4.95


11,687


5.22


11,808


5.03


4



3




11,787


5.03


11,795


5.24


-


    Total loans
      and leases,
      net



58,188


4.51


50,835


4.74


55,461


4.55


14



5




55,230


4.57


51,349


4.69


8


































 Total earning
   assets



67,215


4.29


59,066


4.65


63,382


4.40


14



6




63,371


4.42


59,731


4.62


6


































Goodwill



3,525




3,525




3,525




-



-




3,525




3,525




-


































Core deposit
 and other
 intangible
 assets



266




146




198




83



35




195




160




22


































Other assets



5,902




5,074




5,349




16



10




5,398




4,923




10


































 Total assets


$

76,908




67,811




72,454




13

%


6

%


$

72,489




68,339




6

%

































LIABILITIES AND SHAREHOLDERS' EQUITY

































Interest-
 bearing
 deposits
































 NOW
   accounts


$

814


.17


592


.15


742


.15


37

%


10

%


$

729


.15


599


.14


22

%

 Savings
   deposits



31,654


.28


26,177


.33


30,043


.28


21



5




29,804


.28


25,733


.33


16


 Time
   deposits



7,169


.98


6,312


1.46


6,657


1.16


14



8




6,514


1.15


6,767


1.56


-4


 Deposits
   at Cayman
   Islands
   office



614


.12


802


.16


820


.09


-23



-25




869


.12


1,002


.14


-13


    Total
      interest-
      bearing
      deposits



40,251


.40


33,883


.53


38,262


.42


19



5




37,916


.42


34,101


.56


11


































Short-term
 borrowings



592


.15


1,858


.16


707


.08


-68



-16




878


.13


1,994


.16


-56


Long-term
 borrowings



6,829


3.63


8,948


3.10


7,076


3.48


-24



-3




7,089


3.45


9,516


2.91


-26


































Total interest-
 bearing
 liabilities



47,672


.86


44,689


1.03


46,045


.89


7



4




45,883


.89


45,611


1.04


1


































Noninterest-
 bearing
 deposits



18,222




13,647




16,195




34



13




16,320




13,518




21


































Other
 liabilities



1,690




1,294




1,402




31



21




1,420




1,180




20


































 Total
   liabilities



67,584




59,630




63,642




13



6




63,623




60,309




5


































Shareholders'
 equity



9,324




8,181




8,812




14



6




8,866




8,030




10