M&T Bank Corporation Announces Second Quarter Profits

            M&T Bank Corporation Announces Second Quarter Profits

PR Newswire

BUFFALO, N.Y., July 17, 2012

BUFFALO, N.Y., July 17, 2012 /PRNewswire/ -- M&T Bank Corporation ("M&T")
(NYSE: MTB) today reported its results of operations for the quarter ended
June 30, 2012.

GAAP Results of Operations. Dilutedearnings per common share measured in
accordance with generally accepted accounting principles ("GAAP") for the
second quarter of 2012 were $1.71, up 14% from $1.50 in the initial 2012
quarter. GAAP-basis net income in the recent quarter totaled $233 million,
13% higher than $206 million in the first quarter of 2012. GAAP-basis net
income for the second quarter of 2012 expressed as an annualized rate of
return on average assets and average common shareholders' equity was 1.17% and
10.12%, respectively, improved from 1.06% and 9.04%, respectively, in the
immediately preceding quarter.

The recent quarter's results as compared with the first quarter of 2012
reflect a 24% rise in mortgage banking revenues and solid increases in net
interest income and trust income, as well as reduced costs for salaries and
benefits. The higher mortgage banking revenues reflect significant
improvements in both residential and commercial mortgage banking activities.

Reflecting on the recent quarter's performance, Rene F. Jones, Executive Vice
President and Chief Financial Officer, commented, "M&T continues to perform
well for both our customers and our shareholders. During the second quarter
we saw significant growth in our revenues in the areas of net interest income,
mortgage banking and trust services. Our credit experience, specifically net
charge-offs as a percentage of loans, continued to favorably outpace the rest
of the banking industry and the level of our nonaccrual loans declined $97
million or 9% from March 31. Furthermore, our operating expenses were once
again well controlled as reflected in our efficiency ratio, which improved to
56.9% from 61.1%. We view this as a very solid quarter of performance."

Diluted earnings per common share and GAAP-basis net income in the second
quarter of 2011 were $2.42 and $322 million, respectively. The recent
quarter's results as compared with the second quarter of 2011 reflect
increased net interest income, trust income and mortgage banking revenues.
Earnings for last year's second quarter were supplemented by realized gains
from the sale of investment securities, which totaled $67 million after-tax
effect, or $.54 of diluted earnings per common share, as M&T repositioned its
balance sheet in conjunction with the May 16, 2011 acquisition of Wilmington
Trust Corporation ("Wilmington Trust"). Also adding to earnings in the second
quarter of 2011 was a net after-tax gain of $42 million, or $.33 of diluted
earnings per common share, related to the Wilmington Trust acquisition.
GAAP-basis net income in that quarter expressed as an annualized rate of
return on average assets and average common shareholders' equity was 1.78% and
14.94%, respectively.

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, but include the effect of securities gains and losses,
were $1.82 in the recent quarter, compared with $2.16 and $1.59 in the second
quarter of 2011 and the first quarter of 2012, respectively. Net operating
income during the second quarter of 2012 was $247 million, compared with $289
million in the second quarter of 2011 and $218 million inthe initial 2012
quarter. Expressed as an annualized rate of return on average tangible assets
and average tangible common shareholders' equity, net operating income in the
recently completed quarter was 1.30% and 18.54%, respectively, compared with
1.69% and 24.24% in the year-earlier quarter and 1.18% and 16.79% in the first
quarter of 2012.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest
income totaled $655 million in the second quarter of 2012, up an annualized
18% from $627 million in the first quarter of 2012. That improvement was
predominantly due to a $2.1 billion increase in average earning assets,
including a $1.3 billion increase in average loans outstanding, and a 5 basis
point (hundredths of one percent) widening of the net interest margin. The
higher net interest margin reflects an additional $14 million of interest
income which resulted from an improvement in estimated cash flows expected to
be collected on acquired loans. Stabilizing economic conditions and better
than expected repayments resulted in an approximate 1% increase in projected
cash flows, which will be recognized as interest income over the remaining
terms of the acquired loans. Taxable-equivalent net interest income in the
recent quarter was up 10% from $593 million in the second quarter of 2011.
That improvement resulted from a $7.1 billion increase in average earning
assets.

Provision for Credit Losses/Asset Quality. The provision for credit losses
was $60 million in the second quarter of 2012, compared with $63 million in
the year-earlier quarter and $49 million in the first quarter of 2012. Net
charge-offs of loans were $52 million during the recent quarter, compared with
$59 million and $48 million in the second quarter of 2011 and the first
quarter of 2012, respectively. Expressed as an annualized percentage of
average loans outstanding, net charge-offs were .34% and .43% in the second
quarter of 2012 and 2011, respectively, and .32% in the first quarter of 2012.

Loans classified as nonaccrual declined to $968 million, or 1.54% of total
loans outstanding at June 30, 2012, improved from $1.12 billion or 1.91% a
year earlier and $1.07 billion or 1.75% at March 31, 2012.

Assets taken in foreclosure of defaulted loans were $116 million at June 30,
2012, improved from $159 million at June 30, 2011 and $140 million at March
31, 2012.

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 $917 million at June 30,
2012, compared with $908 million and $909 million at June 30, 2011 and March
31, 2012, respectively. The allowance expressed as a percentage of
outstanding loans was 1.46% at June 30, 2012, compared with 1.55% at June 30,
2011 and 1.49% at March 31, 2012.

Noninterest Income and Expense. Noninterest income totaled $392 million in
the second quarter of 2012, compared with $502 million and $377 million in the
second quarter of 2011 and the first quarter of 2012, respectively. Reflected
in those amounts were net pre-tax losses on investment securities of $17
million and $11 million in the recent quarter and the first quarter of 2012,
respectively, and net pre-tax gains from investment securities of $84 million
in the second quarter of 2011. The net securities losses in the recent
quarter and the initial 2012 quarter were predominantly due to
other-than-temporary impairment charges related to certain of M&T's holdings
of privately issued collateralized mortgage obligations. The net securities
gains in the second quarter of 2011 resulted from $111 million of gains
realized on the sale of investment securities available for sale,
predominantly residential mortgage-backed securities guaranteed by Fannie Mae
and Freddie Mac, collateralized debt obligations and capital preferred
securities, having an amortized cost of approximately $1.21 billion.
Partially offsetting those securities gains were $27 million of
other-than-temporary impairment charges related to certain of M&T's holdings
of privately issued collateralized mortgage obligations. In connection with
the Wilmington Trust acquisition, M&T sold investment securities in last
year's second quarter in order to manage its balance sheet size and
composition and the resultant capital ratios.

Excluding gains and losses from investment securities in all periods and the
$65 million gain recorded in 2011's second quarter related to the Wilmington
Trust acquisition, noninterest income in the second quarter of 2012 aggregated
$408 million, compared with $353 million in the year-earlier quarter and $388
million in the initial quarter of 2012. The recent quarter's improvement in
noninterest income as compared with the earlier quarters resulted
predominantly from higher mortgage banking revenues and trust income.

Noninterest expense in the second quarter of 2012 totaled $627 million,
compared with $577 million in the year-earlier quarter and $640 million in the
first quarter of 2012. 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 $604 million in the recent quarter,
compared with $525 million in the second quarter of 2011 and $620 million in
2012's initial quarter. The most significant factor for the higher level of
operating expenses in the recent quarter as compared with the year-earlier
quarter was the impact of the operations obtained in the Wilmington Trust
acquisition. As compared with the first quarter of 2012, the recent quarter's
lower level of operating expenses was due, in large part, to a decline in
salaries and employee benefits, including stock-based compensation.

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 56.9% in the second quarter of 2012, compared with 55.6% in the
year-earlier period and 61.1% in the first quarter of 2012.

Balance Sheet. M&T had total assets of $80.8 billion at June 30, 2012,
compared with $77.7 billion at June 30, 2011. Loans and leases, net of
unearned discount, increased $4.3 billion or 7% to $62.9 billion at the recent
quarter-end, from $58.5 billion a year earlier. Total deposits rose 6% to
$62.5 billion at June 30, 2012 from $59.2 billion at June 30, 2011.

Total shareholders' equity increased 4% to $9.6 billion at June 30, 2012 from
$9.2 billion a year earlier, representing 11.92% and 11.89%, respectively, of
total assets. Common shareholders' equity was $8.8 billion, or $69.15 per
share, at June 30, 2012, compared with $8.4 billion, or $66.71 per share, at
June 30, 2011. Tangible equity per common share rose 8% to $40.52 at the
recent quarter-end from $37.45 a year earlier. Common shareholders' equity
per share and tangible equity per common share were $67.64 and $38.89,
respectively, at March 31, 2012. 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 6.65% at June 30, 2012, up from 6.35% and 6.51% at June 30, 2011 and March
31, 2012, respectively. M&T's estimated Tier 1 common ratio, a regulatory
capital measure, was 7.15% at June 30, 2012, improved from 6.67% and 7.04% at
June 30, 2011 and March 31, 2012, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's
conference call to discuss second quarter financial results today at 10:30
a.m. Eastern Time. Those wishing to participate in the call may dial (877)
780-2276. International participants, using any applicable international
calling codes, may dial (973) 582-2700. Callers should reference M&T Bank
Corporation or the conference ID#99533519. The conference call will be
webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.A
replay of the call will be available until Thursday, July 19, 2012 by calling
(800) 585-8367, or (404) 537-3406 for international participants, and by
making reference to ID# 99533519. The event will also be archived and
available by 7:00 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, operatesbanking officesin New York,
Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of
Columbia. 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                  Six months ended
Amounts in            June 30                             June 30
thousands,
except per share     2012        2011        Change      2012        2011        Change
Performance
Net income          $ 233,380     322,358     -28    %  $ 439,843     528,631     -17    %
Net income
available to          214,716     297,179     -28    %    402,958     487,308     -17    %
common
shareholders
Per common share:
 Basic earnings   $ 1.71        2.43        -30    %  $ 3.21        4.04        -21    %
 Diluted             1.71        2.42        -29    %    3.20        4.02        -20    %
earnings
 Cash dividends   $ .70         .70         -         $ 1.40        1.40        -
Common shares
outstanding:
 Average -           125,897     122,796     3      %    125,756     121,332     4      %
diluted (1)
 Period end (2)     126,645     125,622     1      %    126,645     125,622     1      %
Return on
(annualized):
 Average total       1.17      % 1.78      %             1.12      % 1.52      %
assets
 Average common
shareholders'         10.12     % 14.94     %             9.58      % 12.62     %
equity
Taxable-equivalent
net interest        $ 654,628     592,670     10     %  $ 1,281,722   1,167,801   10     %
income
Yield on average      4.25      % 4.40      %             4.24      % 4.49      %
earning assets
Cost of
interest-bearing      .76       % .89       %             .78       % .90       %
liabilities
Net interest          3.49      % 3.51      %             3.46      % 3.59      %
spread
Contribution of
interest-free         .25       % .24       %             .25       % .24       %
funds
Net interest          3.74      % 3.75      %             3.71      % 3.83      %
margin
Net charge-offs to
average total
 net loans           .34       % .43       %             .33       % .50       %
(annualized)
Net operating
results (3)
Net operating       $ 247,433     289,487     -15    %  $ 465,793     505,847     -8     %
income
Diluted net
operating earnings    1.82        2.16        -16    %    3.41        3.83        -11    %
per common share
Return on
(annualized):
 Average tangible    1.30      % 1.69      %             1.24      % 1.53      %
assets
 Average tangible    18.54     % 24.24     %             17.68     % 22.30     %
common equity
Efficiency ratio     56.86     % 55.56     %             58.92     % 55.65     %
                      

                      At June 30
Loan quality          2012        2011        Change
Nonaccrual loans   $ 968,328     1,117,584   -13    %
Real estate and
other foreclosed      115,580     158,873     -27    %
assets
 Total
nonperforming       $ 1,083,908   1,276,457   -15    %
assets
Accruing loans
past due 90 days    $ 274,598     239,527     15     %
or more (4)
Government
guaranteed loans
included in totals
 above:
 Nonaccrual        $ 48,712      42,337      15     %
loans
 Accruing loans
past due 90 days      255,495     205,644     24     %
or more
Renegotiated        $ 267,111     234,726     14     %
loans
Acquired accruing
loans past due 90
 days or more      $ 162,487     228,304     -29    %
(5)
Purchased impaired
loans (6):
 Outstanding       $ 1,037,458   1,473,237
customer balance
 Carrying amount    560,700     752,978
Nonaccrual loans
to total net          1.54      % 1.91      %
loans
Allowance for
credit losses to      1.46      % 1.55      %
total loans

(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) Excludes acquired loans.
(5) Acquired loans that were recorded at fair value at acquisition date. This
category does not include purchased impaired loans that are presented
separately.
(6) 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             June 30,     March 31,    December     September    June 30,
thousands,                                       31,          30,
except per share      2012         2012         2011         2011         2011
Performance
Net income          $ 233,380      206,463      147,740      183,108      322,358
Net income
available to           214,716      188,241      129,804      164,671      297,179
common
shareholders
Per common share:
 Basic earnings    $ 1.71         1.50         1.04         1.32         2.43
 Diluted              1.71         1.50         1.04         1.32         2.42
earnings
 Cash dividends    $ .70          .70          .70          .70          .70
Common shares
outstanding:
 Average -            125,897      125,616      124,736      124,860      122,796
diluted (1)
 Period end (2)       126,645      126,534      125,752      125,678      125,622
Return on
(annualized):
 Average total        1.17      %  1.06      %  .75       %  .94       %  1.78      %
assets
 Average common
shareholders'          10.12     %  9.04      %  6.12      %  7.84      %  14.94     %
equity
Taxable-equivalent
net interest         $ 654,628      627,094      624,566      623,265      592,670
income
Yield on average       4.25      %  4.24      %  4.17      %  4.29      %  4.40      %
earning assets
Cost of
interest-bearing       .76       %  .80       %  .82       %  .86       %  .89       %
liabilities
Net interest           3.49      %  3.44      %  3.35      %  3.43      %  3.51      %
spread
Contribution of
interest-free          .25       %  .25       %  .25       %  .25       %  .24       %
funds
Net interest           3.74      %  3.69      %  3.60      %  3.68      %  3.75      %
margin
Net charge-offs to
average total
 net loans            .34       %  .32       %  .50       %  .39       %  .43       %
(annualized)
Net operating
results (3)
Net operating        $ 247,433      218,360      168,410      209,996      289,487
income
Diluted net
operating earnings     1.82         1.59         1.20         1.53         2.16
per common share
Return on
(annualized):
 Average tangible     1.30      %  1.18      %  .89       %  1.14      %  1.69      %
assets
 Average tangible     18.54     %  16.79     %  12.36     %  16.07     %  24.24     %
common equity
Efficiency ratio      56.86     %  61.09     %  67.38     %  61.79     %  55.56     %
                       June 30,     March 31,    December     September    June 30,
                                                 31,          30,
Loan quality           2012         2012         2011         2011         2011
Nonaccrual loans    $ 968,328      1,065,229    1,097,581    1,113,788    1,117,584
Real estate and
other foreclosed       115,580      140,297      156,592      149,868      158,873
assets
 Total
nonperforming        $ 1,083,908    1,205,526    1,254,173    1,263,656    1,276,457
assets
Accruing loans
past due 90 days     $ 274,598      273,081      287,876      239,970      239,527
or more (4)
Government
guaranteed loans
included in totals
 above:
 Nonaccrual         $ 48,712       44,717       40,529       32,937       42,337
loans
 Accruing loans
past due 90 days       255,495      252,622      252,503      210,407      205,644
or more
Renegotiated         $ 267,111      213,024      214,379      223,233      234,726
loans
Acquired accruing
loans past due 90
 days or more       $ 162,487      165,163      163,738      211,958      228,304
(5)
Purchased impaired
loans (6):
 Outstanding        $ 1,037,458    1,158,829    1,267,762    1,393,777    1,473,237
customer balance
 Carrying amount     560,700      604,779      653,362      703,632      752,978
Nonaccrual loans
to total net           1.54      %  1.75      %  1.83      %  1.91      %  1.91      %
loans
Allowance for
credit losses to       1.46      %  1.49      %  1.51      %  1.56      %  1.55      %
total loans
(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) Excludes
acquired loans.
(5) Acquired loans that were recorded at fair value at acquisition date. This category
does not include purchased impaired loans that are presented separately.
(6) 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              Six months ended
                       June 30                         June 30
Dollars in thousands   2012      2011      Change      2012       2011       Change
Interest income     $ 737,386   688,253   7      %  $ 1,451,481  1,355,736  7      %
Interest expense      89,403    102,051   -12         183,109    200,730    -9
Net interest income   647,983   586,202   11          1,268,372  1,155,006  10
Provision for credit   60,000    63,000    -5          109,000    138,000    -21
losses
Net interest income
after
 provision for       587,983   523,202   12          1,159,372  1,017,006  14
credit losses
Other income
 Mortgage          69,514    42,151    65          125,706    87,307     44
banking revenues
 Service charges   110,982   119,716   -7          219,871    229,447    -4
on deposit accounts
 Trust income     122,275   75,592    62          239,228    104,913    128
 Brokerage         16,172    14,926    8           30,073     29,222     3
services income
 Trading account
and foreign exchange   6,238     6,798     -8          16,809     15,077     11
gains
 Gain (loss) on
bank investment        (408)     110,744   -           (363)      150,097    -
securities

Other-than-temporary
impairment losses
 recognized     (16,173)  (26,530)  -           (27,659)   (42,571)   -
in earnings
 Equity in
earnings of Bayview    (6,635)   (5,223)   -           (11,387)   (11,901)   -
Lending Group LLC
 Other revenues    89,685    163,482   -45         176,095    254,485    -31
from operations
 Total        391,650   501,656   -22         768,373    816,076    -6
other income
Other expense
 Salaries and      323,686   300,178   8           669,784    566,268    18
employee benefits
 Equipment and     65,376    59,670    10          130,419    116,333    12
net occupancy
 Printing,
postage and            11,368    9,723     17          23,240     18,925     23
supplies
 Amortization of
core deposit and
other
 intangible     15,907    14,740    8           32,681     27,054     21
assets
 FDIC              24,962    26,609    -6          53,911     45,703     18
assessments
 Other costs of    186,093   165,975   12          357,052    302,183    18
operations
 Total        627,392   576,895   9           1,267,087  1,076,466  18
other expense
Income before income   352,241   447,963   -21         660,658    756,616    -13
taxes
Applicable income      118,861   125,605   -5          220,815    227,985    -3
taxes
Net income          $ 233,380   322,358   -28    %  $ 439,843    528,631    -17    %

M&T BANK CORPORATION
Condensed Consolidated Statement
of Income, Five Quarter Trend
                            Three months ended
                            June 30,  March 31,  December  September  June 30,
                                                 31,       30,
Dollars in thousands        2012      2012       2011      2011       2011
Interest income          $ 737,386   714,095    716,000   720,351    688,253
Interest expense           89,403    93,706     97,969    103,632    102,051
Net interest income        647,983   620,389    618,031   616,719    586,202
Provision for credit        60,000    49,000     74,000    58,000     63,000
losses
Net interest income after
 provision for credit     587,983   571,389    544,031   558,719    523,202
losses
Other income
 Mortgage banking       69,514    56,192     40,573    38,141     42,151
revenues
 Service charges on     110,982   108,889    104,071   121,577    119,716
deposit accounts
 Trust income          122,275   116,953    113,820   113,652    75,592
 Brokerage services     16,172    13,901     13,341    13,907     14,926
income
 Trading account and    6,238     10,571     7,971     4,176      6,798
foreign exchange gains
 Gain (loss) on bank    (408)     45         1         89         110,744
investment securities
 Other-than-temporary
impairment losses
 recognized in       (16,173)  (11,486)   (24,822)  (9,642)    (26,530)
earnings
 Equity in earnings
of Bayview Lending Group    (6,635)   (4,752)    (5,419)   (6,911)    (5,223)
LLC
 Other revenues from    89,685    86,410     148,918   93,393     163,482
operations
 Total other       391,650   376,723    398,454   368,382    501,656
income
Other expense
 Salaries and           323,686   346,098    312,528   325,197    300,178
employee benefits
 Equipment and net      65,376    65,043     65,080    68,101     59,670
occupancy
 Printing, postage      11,368    11,872     11,399    10,593     9,723
and supplies
 Amortization of core
deposit and other
 intangible          15,907    16,774     17,162    17,401     14,740
assets
 FDIC assessments      24,962    28,949     27,826    26,701     26,609
 Other costs of         186,093   170,959    305,588   214,026    165,975
operations
 Total other       627,392   639,695    739,583   662,019    576,895
expense
Income before income        352,241   308,417    202,902   265,082    447,963
taxes
Applicable income taxes    118,861   101,954    55,162    81,974     125,605
Net income               $ 233,380   206,463    147,740   183,108    322,358





M&T BANK CORPORATION
Condensed Consolidated Balance
Sheet
                                      June 30
Dollars in thousands                  2012            2011          Change
ASSETS
Cash and due from banks          $   1,421,831       1,297,335     10      %
Interest-bearing deposits at          1,069,717       2,275,450     -53
banks
Federal funds sold and
agreements
 to resell securities               1,000           415,580       -100
Trading account assets               544,938         502,986       8
Investment securities                7,057,300       6,492,265     9
Loans and leases:
 Commercial, financial,             16,395,587      15,040,892    9
etc.
 Real estate - commercial          24,898,707      24,263,726    3
 Real estate - consumer            9,811,525       6,970,921     41
 Consumer                          11,745,453      12,265,690    -4
 Total loans and leases,          62,851,272      58,541,229    7
net of unearned discount
 Less: allowance for           917,028         907,589       1
credit losses
 Net loans and leases               61,934,244      57,633,640    7
Goodwill                             3,524,625       3,524,625     -
Core deposit and other                143,713         210,957       -32
intangible assets
Other assets                         5,110,210       5,374,316     -5
 Total assets                   $   80,807,578      77,727,154    4       %
LIABILITIES AND SHAREHOLDERS'
EQUITY
Noninterest-bearing deposits     $   22,854,794      18,598,828    23      %
Interest-bearing deposits            39,327,849      40,078,834    -2
Deposits at Cayman Islands            366,164         551,553       -34
office
 Total deposits                     62,548,807      59,229,215    6
Short-term borrowings                975,575         567,144       72
Accrued interest and other            1,965,421       1,557,685     26
liabilities
Long-term borrowings                 5,687,868       7,128,916     -20
 Total liabilities                  71,177,671      68,482,960    4
Shareholders' equity:
 Preferred                         868,433         860,901       1
 Common (1)                       8,761,474       8,383,293     5
 Total shareholders'              9,629,907       9,244,194     4
equity
 Total liabilities and           $   80,807,578      77,727,154    4       %
shareholders' equity
(1) Reflects accumulated other comprehensive loss, net of applicable income
tax effect, of $277.8 million at
 June 30, 2012 and $228.8 million at June 30, 2011.

M&T BANK CORPORATION
Condensed Consolidated Balance
Sheet, Five Quarter Trend
                       June 30,     March 31,    December     September    June 30,
                                                 31,          30,
Dollars in             2012         2012         2011         2011         2011
thousands
ASSETS
Cash and due from    $ 1,421,831    1,344,092    1,449,547    1,349,057    1,297,335
banks
Interest-bearing       1,069,717    1,282,040    154,960      2,226,779    2,275,450
deposits at banks
Federal funds sold
and agreements
 to resell            1,000        -            2,850        5,000        415,580
securities
Trading account        544,938      517,620      561,834      605,557      502,986
assets
Investment             7,057,300    7,195,296    7,673,154    7,173,797    6,492,265
securities
Loans and leases:
 Commercial,         16,395,587   15,938,672   15,734,436   15,218,502   15,040,892
financial, etc.
 Real estate -       24,898,707   24,486,555   24,411,114   23,961,306   24,263,726
commercial
 Real estate -       9,811,525    8,696,594    7,923,165    7,065,451    6,970,921
consumer
 Consumer           11,745,453   11,799,929   12,027,290   12,156,005   12,265,690
 Total loans
and leases, net of     62,851,272   60,921,750   60,096,005   58,401,264   58,541,229
unearned discount
 Less:
allowance for          917,028      909,006      908,290      908,525      907,589
credit losses
 Net loans and        61,934,244   60,012,744   59,187,715   57,492,739   57,633,640
leases
Goodwill              3,524,625    3,524,625    3,524,625    3,524,625    3,524,625
Core deposit and
other intangible       143,713      159,619      176,394      193,556      210,957
assets
Other assets          5,110,210    5,150,851    5,193,208    5,292,781    5,374,316
 Total assets      $ 80,807,578   79,186,887   77,924,287   77,863,891   77,727,154
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Noninterest-bearing  $ 22,854,794   20,648,970   20,017,883   19,637,491   18,598,828
deposits
Interest-bearing       39,327,849   39,868,782   39,020,839   39,330,027   40,078,834
deposits
Deposits at Cayman     366,164      395,191      355,927      514,871      551,553
Islands office
 Total deposits      62,548,807   60,912,943   59,394,649   59,482,389   59,229,215
Short-term             975,575      511,981      782,082      694,398      567,144
borrowings
Accrued interest
and other              1,965,421    1,856,749    1,790,121    1,563,121    1,557,685
liabilities
Long-term              5,687,868    6,476,526    6,686,226    6,748,857    7,128,916
borrowings
 Total                71,177,671   69,758,199   68,653,078   68,488,765   68,482,960
liabilities
Shareholders'
equity:
 Preferred          868,433      866,489      864,585      862,717      860,901
 Common (1)        8,761,474    8,562,199    8,406,624    8,512,409    8,383,293
 Total
shareholders'          9,629,907    9,428,688    9,271,209    9,375,126    9,244,194
equity
 Total liabilities
and shareholders'    $ 80,807,578   79,186,887   77,924,287   77,863,891   77,727,154
equity
(1) Reflects accumulated other comprehensive loss, net of applicable income tax
effect, of $277.8 million at June 30, 2012, $331.3 million at March 31, 2012,
 $356.4 million at December 31, 2011, $192.5 million at September
30, 2011 and $228.8 million at June 30, 2011.



M&T BANK CORPORATION
Condensed Consolidated Average
Balance Sheet
and Annualized
Taxable-equivalent
Rates
                       Three months ended                           Change in       Six months ended
                                                                    balance
                       June 30,       June 30,       March 31,      June 30,        June 30
                                                                    2012 from
Dollars in millions    2012           2011           2012           June   March    2012           2011            Change
                                                                    30,    31,                                     in
                       Balance Rate   Balance Rate   Balance Rate   2011   2012     Balance Rate   Balance Rate   balance
ASSETS
Interest-bearing     $ 1,247   .25  % 804     .24  % 301     .28  % 55  %  313 %  $ 774     .25  % 462      .22  % 68      %
deposits at banks
Federal funds sold
and agreements
 to resell            6       .56    622     .09    3       .50    -99    127      4       .54    320      .10    -99
securities
Trading account        100     1.64   101     1.32   93      1.57   −      7        97      1.61   105      1.47   -8
assets
Investment             7,271   3.47   6,394   4.03   7,507   3.54   14     -3       7,389   3.51   6,805    4.11   9
securities
Loans and leases,
net of unearned
discount
 Commercial,          16,104  3.72   14,623  3.89   15,732  3.71   10     2        15,918  3.72   14,101   3.91   13
financial, etc.
 Real estate -        24,737  4.65   22,471  4.59   24,559  4.42   10     1        24,648  4.54   21,741   4.65   13
commercial
 Real estate -        9,216   4.43   6,559   5.00   8,286   4.60   41     11       8,751   4.51   6,308    5.03   39
consumer
 Consumer            11,769  4.82   11,808  5.03   11,907  4.80   −      -1       11,838  4.81   11,576   5.08   2
 Total loans       61,826  4.42   55,461  4.55   60,484  4.35   11     2        61,155  4.39   53,726   4.61   14
and leases, net
 Total earning        70,450  4.25   63,382  4.40   68,388  4.24   11     3        69,419  4.24   61,418   4.49   13
assets
Goodwill              3,525          3,525          3,525          -      -        3,525          3,525           −
Core deposit and
other intangible       151            165            168            -9     -10      159            142             12
assets
Other assets          5,961          5,382          5,945          11     −        5,953          5,177           15
 Total assets      $ 80,087         72,454         78,026         11  %  3   %  $ 79,056         70,262          13      %
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-bearing
deposits
 NOW accounts      $ 841     .20    742     .15    827     .14    13  %  2   %  $ 834     .17    685      .14    22      %
 Savings deposits    33,286  .20    30,043  .28    32,410  .23    11     3        32,848  .22    28,863   .28    14
 Time deposits       5,545   .90    6,657   1.16   5,960   .91    -17    -7       5,753   .90    6,181    1.25   -7
 Deposits at
Cayman Islands         457     .20    820     .09    496     .17    -44    -8       476     .19    999      .12    -52
office
 Total
interest-bearing       40,129  .30    38,262  .42    39,693  .33    5      1        39,911  .31    36,728   .44    9
deposits
Short-term             875     .16    707     .08    828     .15    24     6        852     .15    1,024    .13    -17
borrowings
Long-term              6,102   3.90   7,076   3.48   6,507   3.78   -14    -6       6,304   3.84   7,222    3.37   -13
borrowings
Total
interest-bearing       47,106  .76    46,045  .89    47,028  .80    2      -        47,067  .78    44,974   .90    5
liabilities
Noninterest-bearing    21,401         16,195         19,598         32     9        20,499         15,353          34
deposits
Other liabilities     2,044          1,402          2,024          46     1        2,034          1,302           56
 Total                70,551         63,642         68,650         11     3        69,600         61,629          13
liabilities
Shareholders'          9,536          8,812          9,376          8      2        9,456          8,633           10
equity
 Total liabilities
and shareholders'    $ 80,087         72,454         78,026         11  %  3   %  $ 79,056         70,262          13      %
equity
Net interest                   3.49           3.51           3.44                           3.46            3.59
spread
Contribution of
interest-free                  .25            .24            .25                            .25             .24
funds
Net interest                   3.74 %         3.75 %         3.69 %                         3.71 %          3.83 %
margin

M&T BANK CORPORATION
Reconciliation of Quarterly
GAAP to Non-GAAP Measures
                              Three months ended       Six months ended
                              June 30                  June 30
                              2012        2011         2012        2011
Income statement data
In thousands, except per
share
Net income
Net income                 $ 233,380     322,358    $ 439,843     528,631
Amortization of core
deposit and other
 intangible assets (1)      9,709       8,974        19,949      16,452
Merger-related gain (1)      -           (64,930)     -           (64,930)
Merger-related expenses       4,344       23,085       6,001       25,694
(1)
 Net operating income     $ 247,433     289,487    $ 465,793     505,847
Earnings per common share
Diluted earnings per        $ 1.71        2.42       $ 3.20        4.02
common share
Amortization of core
deposit and other
 intangible assets (1)      .08         .07          .16         .13
Merger-related gain (1)      -           (.52)        -           (.53)
Merger-related expenses       .03         .19          .05         .21
(1)
 Diluted net operating     $ 1.82        2.16       $ 3.41        3.83
earnings per common share
Other expense
Other expense              $ 627,392     576,895    $ 1,267,087   1,076,466
Amortization of core
deposit and other
 intangible assets          (15,907)    (14,740)     (32,681)    (27,054)
Merger-related expenses      (7,151)     (36,996)     (9,879)     (41,291)
 Noninterest operating     $ 604,334     525,159    $ 1,224,527   1,008,121
expense
Merger-related expenses
Salaries and employee       $ 3,024       15,305     $ 4,997       15,312
benefits
Equipment and net             -           25           15          104
occupancy
Printing, postage and         -           318          -           465
supplies
Other costs of                4,127       21,348       4,867       25,410
operations
 Total                    $ 7,151       36,996     $ 9,879       41,291
Efficiency ratio
Noninterest operating       $ 604,334     525,159    $ 1,224,527   1,008,121
expense (numerator)
Taxable-equivalent net        654,628     592,670      1,281,722   1,167,801
interest income
Other income                 391,650     501,656      768,373     816,076
Less: Gain (loss) on bank    (408)       110,744      (363)       150,097
investment securities
 Net OTTI losses    (16,173)    (26,530)     (27,659)    (42,571)
recognized in earnings
 Merger-related     -           64,930       -           64,930
gain
Denominator                $ 1,062,859   945,182    $ 2,078,117   1,811,421
Efficiency ratio             56.86     % 55.56    %   58.92     % 55.65     %
Balance sheet data
In millions
Average assets
Average assets             $ 80,087      72,454     $ 79,056      70,262
Goodwill                     (3,525)     (3,525)      (3,525)     (3,525)
Core deposit and other        (151)       (165)        (159)       (142)
intangible assets
Deferred taxes               44          42           46          31
 Average tangible          $ 76,455      68,806     $ 75,418      66,626
assets
Average common equity
Average total equity       $ 9,536       8,812      $ 9,456       8,633
Preferred stock              (868)       (716)        (867)       (730)
 Average common equity      8,668       8,096        8,589       7,903
Goodwill                     (3,525)     (3,525)      (3,525)     (3,525)
Core deposit and other        (151)       (165)        (159)       (142)
intangible assets
Deferred taxes               44          42           46          31
 Average tangible common   $ 5,036       4,448      $ 4,951       4,267
equity
At end of quarter
Total assets
Total assets               $ 80,808      77,727
Goodwill                     (3,525)     (3,525)
Core deposit and other        (143)       (210)
intangible assets
Deferred taxes               41          60
 Total tangible assets    $ 77,181      74,052
Total common equity
Total equity               $ 9,630       9,244
Preferred stock              (868)       (861)
Undeclared dividends -        (4)         (3)
cumulative preferred stock
 Common equity, net of
undeclared cumulative
 preferred dividends      8,758       8,380
Goodwill                     (3,525)     (3,525)
Core deposit and other        (143)       (210)
intangible assets
Deferred taxes               41          60
 Total tangible common     $ 5,131       4,705
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
                       June 30,    March 31,   December    September   June 30,
                                               31,         30,
                       2012        2012        2011        2011        2011
Income statement
data
In thousands,
except per share
Net income
Net income          $ 233,380     206,463     147,740     183,108     322,358
Amortization of
core deposit and
other
 intangible           9,709       10,240      10,476      10,622      8,974
assets (1)
Merger-related         -           -           -           -           (64,930)
gain (1)
Merger-related         4,344       1,657       10,194      16,266      23,085
expenses (1)
 Net operating      $ 247,433     218,360     168,410     209,996     289,487
income
Earnings per
common share
Diluted earnings     $ 1.71        1.50        1.04        1.32        2.42
per common share
Amortization of
core deposit and
other
 intangible           .08         .08         .08         .08         .07
assets (1)
Merger-related         -           -           -           -           (.52)
gain (1)
Merger-related         .03         .01         .08         .13         .19
expenses (1)
 Diluted net
operating earnings   $ 1.82        1.59        1.20        1.53        2.16
per common share
Other expense
Other expense       $ 627,392     639,695     739,583     662,019     576,895
Amortization of
core deposit and
other
 intangible           (15,907)    (16,774)    (17,162)    (17,401)    (14,740)
assets
Merger-related         (7,151)     (2,728)     (16,393)    (26,003)    (36,996)
expenses
 Noninterest        $ 604,334     620,193     706,028     618,615     525,159
operating expense
Merger-related
expenses
Salaries and         $ 3,024       1,973       534         285         15,305
employee benefits
Equipment and net      -           15          189         119         25
occupancy
Printing, postage      -           -           1,475       723         318
and supplies
Other costs of         4,127       740         14,195      24,876      21,348
operations
 Total              $ 7,151       2,728       16,393      26,003      36,996
Efficiency ratio
Noninterest
operating expense    $ 604,334     620,193     706,028     618,615     525,159
(numerator)
Taxable-equivalent
net interest           654,628     627,094     624,566     623,265     592,670
income
Other income          391,650     376,723     398,454     368,382     501,656
Less: Gain (loss)
on bank investment     (408)       45          1           89          110,744
securities
 Net OTTI
losses recognized in   (16,173)    (11,486)    (24,822)    (9,642)     (26,530)
earnings

Merger-related         -           -           -           -           64,930
gain
Denominator          $ 1,062,859   1,015,258   1,047,841   1,001,200   945,182
Efficiency ratio      56.86     % 61.09     % 67.38     % 61.79     % 55.56    %
Balance sheet data
In millions
Average assets
Average assets       $ 80,087      78,026      78,393      76,908      72,454
Goodwill               (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (151)       (168)       (185)       (202)       (165)
assets
Deferred taxes        44          48          54          58          42
 Average tangible   $ 76,455      74,381      74,737      73,239      68,806
assets
Average common
equity
Average total        $ 9,536       9,376       9,413       9,324       8,812
equity
Preferred stock       (868)       (866)       (864)       (862)       (716)
 Average common       8,668       8,510       8,549       8,462       8,096
equity
Goodwill               (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (151)       (168)       (185)       (202)       (165)
assets
Deferred taxes        44          48          54          58          42
 Average tangible   $ 5,036       4,865       4,893       4,793       4,448
common equity
At end of quarter
Total assets
Total assets        $ 80,808      79,187      77,924      77,864      77,727
Goodwill              (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (143)       (160)       (176)       (193)       (210)
assets
Deferred taxes        41          46          51          55          60
 Total tangible     $ 77,181      75,548      74,274      74,201      74,052
assets
Total common
equity
Total equity        $ 9,630       9,429       9,271       9,375       9,244
Preferred stock       (868)       (867)       (865)       (863)       (861)
Undeclared dividends
- cumulative           (4)         (3)         (3)         (3)         (3)
preferred stock
 Common equity, net
of undeclared
cumulative
 preferred          8,758       8,559       8,403       8,509       8,380
dividends
Goodwill               (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (143)       (160)       (176)       (193)       (210)
assets
Deferred taxes        41          46          51          55          60
 Total tangible     $ 5,131       4,920       4,753       4,846       4,705
common equity
(1) After any
related tax
effect.

SOURCE M&T Bank Corporation

Website: http://www.mandtbank.com
 
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