M&T Bank Corporation Announces 2012 Fourth Quarter And Full-Year Profits

   M&T Bank Corporation Announces 2012 Fourth Quarter And Full-Year Profits

PR Newswire

BUFFALO, N.Y., Jan. 16, 2013

BUFFALO, N.Y., Jan. 16, 2013 /PRNewswire/ --M&T Bank Corporation ("M&T")
(NYSE: MTB) today reported its results of operations for 2012.

GAAP Results of Operations. Diluted earnings per common share measured in
accordance with generally accepted accounting principles ("GAAP") for the
fourth quarter of 2012 rose 108% to $2.16 from $1.04 in the year-earlier
quarter and were comparable to $2.17 in the third quarter of 2012. GAAP-basis
net income in the recent quarter totaled $296 million, up from $148 million
and $293 million in the fourth quarter of 2011 and the third quarter of 2012,
respectively. Expressed as an annualized rate of return on average assets and
average common shareholders' equity, GAAP-basis net income for the recent
quarter was 1.45% and 12.10%, respectively, compared with .75% and 6.12%,
respectively, in the year-earlier quarter and 1.45% and 12.40%, respectively,
in the third quarter of 2012.

For the year ended December 31, 2012, diluted earnings per common share were
$7.54, up 19% from $6.35 in 2011. Net income rose to $1.03 billion in 2012
from $859 million in the previous year. Expressed as a rate of return on
average assets and average common shareholders' equity, net income in 2012 was
1.29% and 10.96%, respectively, compared with 1.16% and 9.67%, respectively,
in 2011.

Commenting on M&T's performance, Rene F. Jones, Executive Vice President and
Chief Financial Officer, noted, "This was a year of tremendous accomplishment,
in which M&T recorded record levels of net income and earnings per share.
Revenues were up inmost major categories, led by exceptional growth in
mortgage banking. We continued to extend credit throughout the communities we
serve, and as a result, loans rose an impressive $6.5 billion or 11% from the
end of 2011, all while improving our capital base and expanding the services
we offer our customers. The fourth quarter was a continuation of those
trends, positioning us well for continued success in 2013. As we await
shareholder and regulatory approvals for our proposed acquisition of Hudson
City Bancorp, Inc., we are working diligently to prepare to welcome our new
employees and customers to M&T."

While there were no unusual items included in M&T's results during the recent
quarter, the fourth quarter of 2011 included several items of note: a $79
million (pre-tax effect) other-than-temporary impairment charge related to
M&T's 20% investment in Bayview Lending Group LLC ("BLG"); $55 million of
income in full settlement of a lawsuit arising from a 2007 investment in
collateralized debt obligations; and a $30 million tax-deductible cash
contribution to The M&T Charitable Foundation. The after-tax impact of those
three items reduced the previous year's fourth quarter net income by $33
million, or $.26 of diluted earnings per common share.

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 $2.23 in the recent quarter, compared with $1.20 in
the year-earlier period and $2.24 in the third quarter of 2012. Net operating
income for the fourth quarter of 2012 was $305 million, improved from $168
million in the year-earlier quarter and $302 million in the third quarter of
2012. For the three months ended December 31, 2012, net operating income
expressed as an annualized rate of return on average tangible assets and
average tangible common shareholders' equity was 1.56% and 20.46%,
respectively, compared with .89% and 12.36% in the corresponding 2011 period
and 1.56% and 21.53%, respectively, in the third quarter of 2012.

Diluted net operating earnings per common share rose 20% to $7.88 in 2012 from
$6.55 in 2011. Net operating income for 2012 and 2011 totaled $1.07 billion
and $884 million, respectively. Net operating income in 2012 expressed as a
rate of return on average tangible assets and average tangible common
shareholders' equity was 1.40% and 19.42%, respectively, compared with 1.26%
and 17.96%, respectively, in 2011.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest
income aggregated $674 million in the recent quarter, up from $669 million in
thethird quarter of 2012. That improvement resulted from an increase in
average earning assets, most notably a $1.6 billion rise in average loans and
leases, partially offset by a 3 basis point narrowing of the net interest
margin to 3.74% in the fourth quarter, compared with 3.77% in the immediately
preceding quarter. Taxable-equivalent net interest income in the recent
quarter increased $49 million from $625 million in the fourth quarter of
2011reflecting a $2.9 billion rise in average earning assets and a 14 basis
point widening of the net interest margin. For theyear ended December 31,
2012, net interest income on a taxable-equivalent basis rose 9% to $2.62
billion from $2.42 billion in 2011as a result of a 12%, or $6.5 billion,
increase in average loans and leases. Significantly, the net interest margin
held steady at 3.73% in 2012 as compared with the prior year despite a
challenging low interest rate environment.

Provision for Credit Losses/Asset Quality. Credit quality remained strong.
The provision for credit losses was $49 million during the fourth quarter of
2012, compared with $74 million in the year-earlier quarter and $46 million in
the third quarter of 2012. Net charge-offs of loans were $44 million in the
recent quarter, representing an annualized .27% of average loans outstanding,
compared with $74 million or .50% in the final quarter of 2011 and $42 million
or .26% in 2012's third quarter. The provision for credit losses declined 24%
to $204 million for the year ended December 31, 2012 from $270 million in
2011. Net loan charge-offs for the year totaled $186 million, or .30% of
average loans outstanding, compared with $265 million, or .47% of average
loans in 2011.

Loans classified as nonaccrual totaled $1.01 billion, or 1.52% of total loans
at December 31, 2012, compared with $1.10 billion or 1.83% a year earlier and
$925 million or 1.44% at September 30, 2012. The increase in nonaccrual loans
from September 30, 2012 resulted largely from the addition of $64 million of
loans to a single borrower that are fully secured by residential real estate.

Assets taken in foreclosure of defaulted loans were $104 million at December
31, 2012, down from $157 million and $112 million at December 31, 2011 and
September 30, 2012, 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. Reflecting those analyses, the allowance for
credit losses was $926 million at December 31, 2012, compared with $908
million a year earlier and $921 million at September 30, 2012. The allowance
expressed as a percentage of outstanding loans was 1.39% at the recent
quarter-end, compared with 1.51% at December 31, 2011 and 1.44% at September
30, 2012.

Noninterest Income and Expense. Noninterest income totaled $453 million in
the recently completed quarter, compared with $398 million and $446 million in
the final quarter of 2011 and the third quarter of 2012, respectively.
Reflected in those amounts were net losses from investment securities of $14
million, $25 million and $5 million, each predominantly due to
other-than-temporary impairment charges. Also included in noninterest income
in the fourth quarter of 2011 was the $55 million favorable litigation
settlement related to M&T's 2007 investment in certain collateralized debt
obligations, as previously noted.

Excluding the specific items referred to in the preceding paragraph,
noninterest income was $468 million in the recent quarter, increasing from
$368 million in the year-earlier quarter and $451 million in the third quarter
of 2012. The rise in noninterest income in the recent quarter as compared
with those earlier quarters was predominantly due to higher mortgage banking
revenues.

Noninterest income aggregated $1.67 billion and $1.58 billion during the years
ended December 31, 2012 and 2011, respectively. The most significant
contributors to the rise in noninterest income in 2012 as compared with 2011
were higher mortgage banking revenues and trust income, the latter reflecting
the full-year impact of the acquisition of Wilmington Trust Corporation
("Wilmington Trust"). Partially offsetting those factors were net gains from
investment securities, the previously noted litigation settlement and
merger-related gains, all reflected in M&T's 2011 results.

Noninterest expense in the fourth quarter of 2012 totaled $626 million,
compared with $740 million in the year-earlier quarter and $616 million in
2012's third quarter. 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 $612 million in the recent quarter,
compared with $706 million and $602 million in the fourth quarter of 2011 and
the third quarter of 2012, respectively. Reflected in noninterest expense in
the fourth quarter of 2011 was the aforementioned $79 million impairment
charge related to BLG and the $30 million charitable contribution.

For the year ended December 31, 2012, noninterest expense aggregated $2.51
billion, compared with $2.48 billion in the previous year. Excluding those
previously noted expenses considered to be nonoperating in nature, noninterest
operating expenses were $2.44 billion in 2012 and $2.33 billion in 2011. That
increase was largely attributable to the full-year impact of the operations
obtained in the Wilmington Trust acquisition.

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. As a result of
revenue growth that has outpaced increases in operating expenses, M&T's
efficiency ratio improved to 53.6% in the recent quarter from 67.4% in the
year-earlier quarter and 53.7% in the third quarter of 2012. The efficiency
ratio for the year ended December 31, 2012 was 56.2%, also improved, from
60.4% in 2011. The improved efficiency ratio reflects the significant
progress made in the integration of the operations obtained in the May 2011
acquisition of Wilmington Trust.

Balance Sheet. M&T had total assets of $83.0 billion at December 31, 2012, up
from $77.9 billion a year earlier. Loans and leases, net of unearned
discount, totaled $66.6 billion at the 2012 year-end, $6.5 billion or 11%
higher than $60.1 billion at December 31, 2011. The pace of growth in
outstanding loans and leases during 2012's final quarter remained robust,
increasing $2.5 billion, or 4%, from $64.1 billion at September 30, 2012.
That growth reflects increases in commercial loans, commercial real estate
loans and residential real estate loans. Total deposits were $65.6 billion at
December 31, 2012, $6.2 billion or 10% higher than $59.4 billion a year
earlier and $1.6 billion or 3% above $64.0 billion at September 30, 2012.

Total shareholders' equity rose 10% to $10.2 billion at December 31, 2012 from
$9.3 billion a year earlier, representing 12.29% and 11.90% respectively, of
total assets. Common shareholders' equity was $9.3 billion, or $72.73 per
share at December 31, 2012, compared with $8.4 billion, or $66.82 per share, a
year earlier. Tangible equity per common share rose 18% to $44.61 at December
31, 2012 from $37.79 a year earlier. 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 7.20% at December 31, 2012, compared with 6.40% and 7.04% at
December 31, 2011 and September 30, 2012, respectively. M&T's estimated Tier 1
common ratio was 7.57% at December 31, 2012, compared with 6.86% and 7.46% at
December 31, 2011 and September 30, 2012, respectively.

Conference Call. Investors will have an opportunity to listen to M&T's
conference call to discuss fourth quarter and full-year 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 #86834125. 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 January 19, 2013 by calling
(800)585-8367, or (404)537-3406 for international participants, and by making
reference to ID #86834125. 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, operates banking offices inNew 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 capitalrequirements;
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                   Year ended
 Amounts in            December 31                          December 31
 thousands,
 except per share     2012        2011        Change       2012        2011        Change
 Performance
 Net income          $ 296,193     147,740     100    %   $ 1,029,498   859,479     20     %
 Net income
 available to          276,605     129,804     113          953,429     781,765     22
 common
 shareholders
 Per common share:
  Basic earnings   $ 2.18        1.04        110    %   $ 7.57        6.37        19     %
  Diluted             2.16        1.04        108          7.54        6.35        19
 earnings
  Cash dividends   $ .70         .70         -          $ 2.80        2.80        -
 Common shares
 outstanding:
  Average -           127,800     124,736     2      %     126,405     123,079     3      %
 diluted (1)
  Period end (2)     128,234     125,752     2            128,234     125,752     2
 Return on
 (annualized):
  Average total       1.45      % .75       %              1.29      % 1.16      %
 assets
  Average common
 shareholders'         12.10     % 6.12      %              10.96     % 9.67      %
 equity
 Taxable-equivalent
 net interest        $ 673,929     624,566     8      %   $ 2,624,907   2,415,632   9      %
 income
 Yield on average      4.17      % 4.17      %              4.22      % 4.35      %
 earning assets
 Cost of
 interest-bearing      .67       % .82       %              .74       % .87       %
 liabilities
 Net interest          3.50      % 3.35      %              3.48      % 3.48      %
 spread
 Contribution of
 interest-free         .24       % .25       %              .25       % .25       %
 funds
 Net interest          3.74      % 3.60      %              3.73      % 3.73      %
 margin
 Net charge-offs to
 average total
  net loans           .27       % .50       %              .30       % .47       %
 (annualized)
 Net operating
 results (3)
 Net operating       $ 304,657     168,410     81     %   $ 1,072,510   884,253     21     %
 income
 Diluted net
 operating earnings    2.23        1.20        86           7.88        6.55        20
 per common share
 Return on
 (annualized):
  Average tangible    1.56      % .89       %              1.40      % 1.26      %
 assets
  Average tangible    20.46     % 12.36     %              19.42     % 17.96     %
 common equity
 Efficiency ratio     53.63     % 67.38     %              56.19     % 60.43     %
                       At December 31
 Loan quality          2012        2011        Change
 Nonaccrual loans   $ 1,013,176   1,097,581   -8     %
 Real estate and
 other foreclosed      104,279     156,592     -33    %
 assets
  Total
 nonperforming       $ 1,117,455   1,254,173   -11    %
 assets
 Accruing loans
 past due 90 days    $ 358,397     287,876     24     %
 or more (4)
 Government
 guaranteed loans
 included in totals
  above:
  Nonaccrual        $ 57,420      40,529      42     %
 loans
  Accruing loans
 past due 90 days      316,403     252,503     25     %
 or more
 Renegotiated        $ 271,971     214,379     27     %
 loans
 Acquired accruing
 loans past due 90   $ 166,554     163,738     2      %
 days or more (5)
 Purchased impaired
 loans (6):
  Outstanding       $ 828,571     1,267,762   -35    %
 customer balance
  Carrying amount    447,114     653,362     -32    %
 Nonaccrual loans
 to total net          1.52      % 1.83      %
 loans
 Allowance for
 credit losses to      1.39      % 1.51      %
 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 assetsand merger-related gains and expenses which,
 except in

  the calculation of the efficiency ratio, are netof applicable
 income tax effects. Reconciliations of net income with net operating income
 appearherein.
 (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             December     September    June 30,     March 31,    December
thousands,             31,          30,                                    31,
except per share      2012         2012         2012         2012         2011
Performance
Net income           $ 296,193      293,462      233,380      206,463      147,740
Net income
available to           276,605      273,896      214,716      188,241      129,804
common
shareholders
Per common share:
 Basic earnings    $ 2.18         2.18         1.71         1.50         1.04
 Diluted              2.16         2.17         1.71         1.50         1.04
earnings
 Cash dividends    $ .70          .70          .70          .70          .70
Common shares
outstanding:
 Average -            127,800      126,292      125,897      125,616      124,736
diluted (1)
 Period end (2)      128,234      127,461      126,645      126,534      125,752
Return on
(annualized):
 Average total        1.45      %  1.45      %  1.17      %  1.06      %  .75       %
assets
 Average common
shareholders'          12.10     %  12.40     %  10.12     %  9.04      %  6.12      %
equity
Taxable-equivalent
net interest         $ 673,929      669,256      654,628      627,094      624,566
income
Yield on average       4.17      %  4.23      %  4.25      %  4.24      %  4.17      %
earning assets
Cost of
interest-bearing       .67       %  .71       %  .76       %  .80       %  .82       %
liabilities
Net interest           3.50      %  3.52      %  3.49      %  3.44      %  3.35      %
spread
Contribution of
interest-free          .24       %  .25       %  .25       %  .25       %  .25       %
funds
Net interest           3.74      %  3.77      %  3.74      %  3.69      %  3.60      %
margin
Net charge-offs to
average total
 net loans            .27       %  .26       %  .34       %  .32       %  .50       %
(annualized)
Net operating
results (3)
Net operating        $ 304,657      302,060      247,433      218,360      168,410
income
Diluted net
operating earnings     2.23         2.24         1.82         1.59         1.20
per common share
Return on
(annualized):
 Average tangible     1.56      %  1.56      %  1.30      %  1.18      %  .89       %
assets
 Average tangible     20.46     %  21.53     %  18.54     %  16.79     %  12.36     %
common equity
Efficiency ratio      53.63     %  53.73     %  56.86     %  61.09     %  67.38     %
                       December     September    June 30,     March 31,    December
                       31,          30,                                    31,
Loan quality           2012         2012         2012         2012         2011
Nonaccrual loans    $ 1,013,176    925,231      968,328      1,065,229    1,097,581
Real estate and
other foreclosed       104,279      112,160      115,580      140,297      156,592
assets
 Total
nonperforming        $ 1,117,455    1,037,391    1,083,908    1,205,526    1,254,173
assets
Accruing loans
past due 90 days     $ 358,397      309,420      274,598      273,081      287,876
or more (4)
Government
guaranteed loans
included in totals
 above:
 Nonaccrual         $ 57,420       54,583       48,712       44,717       40,529
loans
 Accruing loans
past due 90 days       316,403      280,410      255,495      252,622      252,503
or more
Renegotiated         $ 271,971      266,526      267,111      213,024      214,379
loans
Acquired accruing
loans past due 90    $ 166,554      161,424      162,487      165,163      163,738
days or more (5)
Purchased impaired
loans (6):
 Outstanding        $ 828,571      978,731      1,037,458    1,158,829    1,267,762
customer balance
 Carrying amount     447,114      528,001      560,700      604,779      653,362
Nonaccrual loans
to total net           1.52      %  1.44      %  1.54      %  1.75      %  1.83      %
loans
Allowance for
credit losses to       1.39      %  1.44      %  1.46      %  1.49      %  1.51      %
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              Year ended
                       December 31                     December 31
Dollars in thousands   2012      2011      Change      2012       2011       Change
Interest income     $ 745,353   716,000   4      %  $ 2,941,685  2,792,087  5      %
Interest expense      77,931    97,969    -20         343,169    402,331    -15
Net interest income   667,422   618,031   8           2,598,516  2,389,756  9
Provision for credit   49,000    74,000    -34         204,000    270,000    -24
losses
Net interest income
after
 provision for       618,422   544,031   14          2,394,516  2,119,756  13
credit losses
Other income
 Mortgage          116,546   40,573    187         349,064    166,021    110
banking revenues
 Service charges   112,364   104,071   8           446,698    455,095    -2
on deposit accounts
 Trust income     116,915   113,820   3           471,852    332,385    42
 Brokerage         14,872    13,341    11          59,059     56,470     5
services income
 Trading account
and foreign exchange   10,356    7,971     30          35,634     27,224     31
gains
 Gain on bank
investment             -         1         -           9          150,187    -
securities

Other-than-temporary
impairment losses
 recognized     (14,491)  (24,822)  -           (47,822)   (77,035)   -
in earnings
 Equity in
earnings of Bayview    (4,941)   (5,419)   -           (21,511)   (24,231)   -
Lending Group LLC
 Other revenues    101,543   148,918   -32         374,287    496,796    -25
from operations
 Total        453,164   398,454   14          1,667,270  1,582,912  5
other income
Other expense
 Salaries and      323,010   312,528   3           1,314,540  1,203,993  9
employee benefits
 Equipment and     62,884    65,080    -3          257,551    249,514    3
net occupancy
 Printing,
postage and            10,417    11,399    -9          41,929     40,917     2
supplies
 Amortization of
core deposit and
other
 intangible     13,865    17,162    -19         60,631     61,617     -2
assets
 FDIC              23,398    27,826    -16         101,110    100,230    1
assessments
 Other costs of    192,572   305,588   -37         733,499    821,797    -11
operations
 Total        626,146   739,583   -15         2,509,260  2,478,068  1
other expense
Income before income   445,440   202,902   120         1,552,526  1,224,600  27
taxes
Applicable income      149,247   55,162    171         523,028    365,121    43
taxes
Net income          $ 296,193   147,740   100    %  $ 1,029,498  859,479    20     %



M&T BANK CORPORATION
Condensed Consolidated Statement of Income, Five Quarter
Trend
                         Three months ended
                         December   September  June 30,   March 31,  December
                         31,        30,                              31,
Dollars in thousands     2012       2012       2012       2012       2011
Interest income       $ 745,353    744,851    737,386    714,095    716,000
Interest expense        77,931     82,129     89,403     93,706     97,969
Net interest income     667,422    662,722    647,983    620,389    618,031
Provision for credit     49,000     46,000     60,000     49,000     74,000
losses
Net interest income
after
 provision for         618,422    616,722    587,983    571,389    544,031
credit losses
Other income
 Mortgage banking    116,546    106,812    69,514     56,192     40,573
revenues
 Service charges     112,364    114,463    110,982    108,889    104,071
on deposit accounts
 Trust income      116,915    115,709    122,275    116,953    113,820
 Brokerage           14,872     14,114     16,172     13,901     13,341
services income
 Trading account
and foreign exchange     10,356     8,469      6,238      10,571     7,971
gains
 Gain (loss) on
bank investment          -          372        (408)      45         1
securities

Other-than-temporary
impairment losses
 recognized in    (14,491)   (5,672)    (16,173)   (11,486)   (24,822)
earnings
 Equity in
earnings of Bayview      (4,941)    (5,183)    (6,635)    (4,752)    (5,419)
Lending Group LLC
 Other revenues      101,543    96,649     89,685     86,410     148,918
from operations
 Total other    453,164    445,733    391,650    376,723    398,454
income
Other expense
 Salaries and        323,010    321,746    323,686    346,098    312,528
employee benefits
 Equipment and net   62,884     64,248     65,376     65,043     65,080
occupancy
 Printing, postage   10,417     8,272      11,368     11,872     11,399
and supplies
 Amortization of
core deposit and
other
 intangible       13,865     14,085     15,907     16,774     17,162
assets
 FDIC assessments   23,398     23,801     24,962     28,949     27,826
 Other costs of      192,572    183,875    186,093    170,959    305,588
operations
 Total other    626,146    616,027    627,392    639,695    739,583
expense
Income before income     445,440    446,428    352,241    308,417    202,902
taxes
Applicable income        149,247    152,966    118,861    101,954    55,162
taxes
Net income             $ 296,193    293,462    233,380    206,463    147,740



M&T BANK CORPORATION
Condensed Consolidated Balance Sheet
                                        December 31
Dollars in thousands                    2012           2011          Change
ASSETS
Cash and due from banks            $   1,983,615      1,449,547     37      %
Interest-bearing deposits at            129,945        154,960       -16
banks
Federal funds sold and
agreements
 to resell securities                 3,000          2,850         5
Trading account assets                 488,966        561,834       -13
Investment securities                  6,074,361      7,673,154     -21
Loans and leases:
 Commercial, financial, etc          17,776,953     15,734,436    13
 Real estate - commercial            25,993,790     24,411,114    6
 Real estate - consumer              11,240,837     7,923,165     42
 Consumer                            11,559,377     12,027,290    -4
 Total loans and leases,            66,570,957     60,096,005    11
net of unearned discount
 Less: allowance for             925,860        908,290       2
credit losses
 Net loans and leases                 65,645,097     59,187,715    11
Goodwill                               3,524,625      3,524,625     -
Core deposit and other                  115,763        176,394       -34
intangible assets
Other assets                           5,043,431      5,193,208     -3
 Total assets                     $   83,008,803     77,924,287    7       %
LIABILITIES AND SHAREHOLDERS'
EQUITY
Noninterest-bearing deposits       $   24,240,802     20,017,883    21      %
Interest-bearing deposits              40,325,932     39,020,839    3
Deposits at Cayman Islands              1,044,519      355,927       193
office
 Total deposits                       65,611,253     59,394,649    10
Short-term borrowings                  1,074,482      782,082       37
Accrued interest and other              1,512,717      1,790,121     -15
liabilities
Long-term borrowings                    4,607,758      6,686,226     -31
 Total liabilities                    72,806,210     68,653,078    6
Shareholders' equity:
 Preferred                           872,500        864,585       1
 Common (1)                          9,330,093      8,406,624     11
 Total shareholders'                10,202,593     9,271,209     10
equity
 Total liabilities and             $   83,008,803     77,924,287    7       %
shareholders' equity
(1) Reflects accumulated other comprehensive loss, net of applicable income
tax effect, of $240.3 million
 at December 31, 2012 and $356.4 million at
December 31, 2011.



M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five
Quarter Trend
                       December     September    June 30,     March 31,    December
                       31,          30,                                    31,
Dollars in             2012         2012         2012         2012         2011
thousands
ASSETS
Cash and due from    $ 1,983,615    1,622,928    1,421,831    1,344,092    1,449,547
banks
Interest-bearing       129,945      411,994      1,069,717    1,282,040    154,960
deposits at banks
Federal funds sold
and agreements
 to resell            3,000        −            1,000        −            2,850
securities
Trading account        488,966      526,844      544,938      517,620      561,834
assets
Investment             6,074,361    6,624,004    7,057,300    7,195,296    7,673,154
securities
Loans and leases:
 Commercial,         17,776,953   16,704,575   16,395,587   15,938,672   15,734,436
financial, etc
 Real estate -       25,993,790   24,970,416   24,898,707   24,486,555   24,411,114
commercial
 Real estate -       11,240,837   10,808,220   9,811,525    8,696,594    7,923,165
consumer
 Consumer           11,559,377   11,628,744   11,745,453   11,799,929   12,027,290
 Total loans
and leases, net of     66,570,957   64,111,955   62,851,272   60,921,750   60,096,005
unearned discount
 Less:
allowance for          925,860      921,223      917,028      909,006      908,290
credit losses
 Net loans and        65,645,097   63,190,732   61,934,244   60,012,744   59,187,715
leases
Goodwill              3,524,625    3,524,625    3,524,625    3,524,625    3,524,625
Core deposit and
other intangible       115,763      129,628      143,713      159,619      176,394
assets
Other assets          5,043,431    5,054,478    5,110,210    5,150,851    5,193,208
 Total assets      $ 83,008,803   81,085,233   80,807,578   79,186,887   77,924,287
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Noninterest-bearing  $ 24,240,802   22,968,401   22,854,794   20,648,970   20,017,883
deposits
Interest-bearing       40,325,932   39,636,104   39,327,849   39,868,782   39,020,839
deposits
Deposits at Cayman     1,044,519    1,402,753    366,164      395,191      355,927
Islands office
 Total deposits      65,611,253   64,007,258   62,548,807   60,912,943   59,394,649
Short-term             1,074,482    592,154      975,575      511,981      782,082
borrowings
Accrued interest
and other              1,512,717    1,570,758    1,965,421    1,856,749    1,790,121
liabilities
Long-term              4,607,758    4,969,536    5,687,868    6,476,526    6,686,226
borrowings
 Total                72,806,210   71,139,706   71,177,671   69,758,199   68,653,078
liabilities
Shareholders'
equity:
 Preferred          872,500      870,416      868,433      866,489      864,585
 Common (1)        9,330,093    9,075,111    8,761,474    8,562,199    8,406,624
 Total
shareholders'          10,202,593   9,945,527    9,629,907    9,428,688    9,271,209
equity
 Total liabilities
and shareholders'    $ 83,008,803   81,085,233   80,807,578   79,186,887   77,924,287
equity
(1) Reflects accumulated other comprehensive loss, net of applicable income tax
effect, of $240.3 million at December 31, 2012,
 $230.1 million at September 30, 2012, $277.8 million at June 30, 2012, $331.3
million at March 31, 2012 and $356.4 million at
 December 31, 2011.



M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates
                       Three months ended                              Change in balance      Year ended
                       December 31,    December 31,    September 30,   December 31, 2012      December 31,
                                                                       from
Dollars in millions    2012            2011            2012            December  September    2012            2011             Change
                                                                       31,       30,                                           in
                       Balance  Rate   Balance  Rate   Balance  Rate   2011      2012         Balance  Rate   Balance  Rate   balance
ASSETS
Interest-bearing     $ 273      .15  % 1,973    .25  % 298      .18  % -86   %   -9    %    $ 528      .23  % 1,195     .25  % -56     %
deposits at banks
Federal funds sold
and agreements
 to resell            3        .57    6        .38    4        .55    -51       -28          4        .55    180       .11    -98
securities
Trading account        97       1.45   82       1.30   94       1.13   18        3            96       1.45   94        1.50   2
assets
Investment             6,295    3.31   7,633    3.48   6,811    3.39   -18       -8           6,969    3.44   7,064     3.82   -1
securities
Loans and leases,
net of unearned
discount
 Commercial,          16,995   3.68   15,392   3.78   16,504   3.73   10        3            16,336   3.71   14,655    3.85   11
financial, etc.
 Real estate -        25,332   4.50   24,108   4.47   24,995   4.61   5         1            24,907   4.50   22,901    4.59   9
commercial
 Real estate -        11,087   4.10   7,480    4.77   10,296   4.29   48        8            9,727    4.33   6,778     4.93   43
consumer
 Consumer            11,597   4.69   12,097   4.87   11,660   4.76   -4        -1           11,732   4.77   11,865    4.99   -1
 Total loans       65,011          59,077   4.39   63,455   4.34   10        2            62,702          56,199    4.53   12
and leases, net
 Total earning        71,679   4.17   68,771   4.17   70,662   4.23   4         1            70,299   4.22   64,732    4.35   9
assets
Goodwill              3,525           3,525           3,525           -         -            3,525           3,525            -
Core deposit and
other intangible       122             185             136             -34       -10          144             168              -14
assets
Other assets          6,040           5,912           6,109           2         -1           6,015           5,552            8
 Total assets      $ 81,366          78,393          80,432          4     %   1     %    $ 79,983          73,977           8       %
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing
deposits
 NOW accounts       $ 881      .14    826      .15    875      .15    7     %   1     %    $ 856      .16    753       .15    14      %
 Savings deposits    34,587   .19    32,179   .27    33,298   .20    7         4            33,398   .20    30,403    .28    10
 Time deposits       4,727    .79    6,379    .93    5,164    .84    -26       -8           5,347    .86    6,480     1.10   -17
 Deposits at
Cayman Islands         763      .18    512      .15    702      .19    49        9            605      .19    779       .12    -22
office
 Total
interest-bearing       40,958   .26    39,896   .37    40,039   .28    3         2            40,206   .29    38,415    .41    5
deposits
Short-term             677      .16    674      .10    976      .15    -         -31          839      .15    827       .12    1
borrowings
Long-term              4,510    4.52   6,574    3.66   5,006    4.27   -31       -10          5,527    4.08   6,959     3.50   -21
borrowings
Total
interest-bearing       46,145   .67    47,144   .82    46,021   .71    -2        -            46,572   .74    46,201    .87    1
liabilities
Noninterest-bearing    23,311          20,103          22,704          16        3            21,761          17,273           26
deposits
Other liabilities     1,805           1,733           1,918           4         -6           1,947           1,499            30
 Total liabilities    71,261          68,980          70,643          3         1            70,280          64,973           8
Shareholders'          10,105          9,413           9,789           7         3            9,703           9,004            8
equity
 Total liabilities
and shareholders'    $ 81,366          78,393          80,432          4     %   1     %    $ 79,983          73,977           8       %
equity
Net interest                    3.50            3.35            3.52                                   3.48             3.48
spread
Contribution of
interest-free                   .24             .25             .25                                    .25              .25
funds
Net interest                    3.74 %          3.60 %          3.77 %                                 3.73 %           3.73 %
margin



 M&T BANK CORPORATION
 Reconciliation of GAAP to Non-GAAP Measures
                             Three months ended        Year ended
                             December 31               December 31
                             2012        2011          2012        2011
 Income statement data
 In thousands, except
 per share
 Net income
 Net income               $ 296,193     147,740     $ 1,029,498   859,479
 Amortization of core
 deposit and other
  intangible assets         8,464       10,476        37,011      37,550
 (1)
 Merger-related gain         -           -             -           (64,930)
 (1)
 Merger-related expenses     -           10,194        6,001       52,154
 (1)
  Net operating income   $ 304,657     168,410     $ 1,072,510   884,253
 Earnings per common
 share
 Diluted earnings per      $ 2.16        1.04        $ 7.54        6.35
 common share
 Amortization of core
 deposit and other
  intangible assets         .07         .08           .29         .30
 (1)
 Merger-related gain         -           -             -           (.52)
 (1)
 Merger-related expenses     -           .08           .05         .42
 (1)
  Diluted net operating
 earnings per common       $ 2.23        1.20        $ 7.88        6.55
 share
 Other expense
 Other expense            $ 626,146     739,583     $ 2,509,260   2,478,068
 Amortization of core
 deposit and other
  intangible assets       (13,865)    (17,162)      (60,631)    (61,617)
 Merger-related              -           (16,393)      (9,879)     (83,687)
 expenses
  Noninterest operating   $ 612,281     706,028     $ 2,438,750   2,332,764
 expense
 Merger-related expenses
 Salaries and employee     $ -           534         $ 4,997       16,131
 benefits
 Equipment and net           -           189           15          412
 occupancy
 Printing, postage and       -           1,475         -           2,663
 supplies
 Other costs of              -           14,195        4,867       64,481
 operations
  Total                  $ -           16,393      $ 9,879       83,687
 Efficiency ratio
 Noninterest operating     $ 612,281     706,028     $ 2,438,750   2,332,764
 expense (numerator)
 Taxable-equivalent net      673,929     624,566       2,624,907   2,415,632
 interest income
 Other income               453,164     398,454       1,667,270   1,582,912
 Less: Gain (loss) on
 bank investment             -           1             9           150,187
 securities
  Net OTTI
 losses recognized in        (14,491)    (24,822)      (47,822)    (77,035)
 earnings
                   -           -             -           64,930
 Merger-related gain
 Denominator              $ 1,141,584   1,047,841   $ 4,339,990   3,860,462
 Efficiency ratio           53.63     % 67.38     %   56.19     % 60.43     %
 Balance sheet data
 In millions
 Average assets
 Average assets           $ 81,366      78,393      $ 79,983      73,977
 Goodwill                   (3,525)     (3,525)       (3,525)     (3,525)
 Core deposit and other      (122)       (185)         (144)       (168)
 intangible assets
 Deferred taxes             36          54            42          43
  Average tangible        $ 77,755      74,737      $ 76,356      70,327
 assets
 Average common equity
 Average total equity     $ 10,105      9,413       $ 9,703       9,004
 Preferred stock            (872)       (864)         (869)       (797)
  Average common            9,233       8,549         8,834       8,207
 equity
 Goodwill                   (3,525)     (3,525)       (3,525)     (3,525)
 Core deposit and other      (122)       (185)         (144)       (168)
 intangible assets
 Deferred taxes             36          54            42          43
  Average tangible        $ 5,622       4,893       $ 5,207       4,557
 common equity
 At end of quarter
 Total assets
 Total assets             $ 83,009      77,924
 Goodwill                   (3,525)     (3,525)
 Core deposit and other      (116)       (176)
 intangible assets
 Deferred taxes             34          51
  Total tangible          $ 79,402      74,274
 assets
 Total common equity
 Total equity             $ 10,203      9,271
 Preferred stock            (873)       (865)
 Undeclared dividends -
 cumulative preferred        (3)         (3)
 stock
  Common equity, net of
 undeclared cumulative
  preferred               9,327       8,403
 dividends
 Goodwill                   (3,525)     (3,525)
 Core deposit and other      (116)       (176)
 intangible assets
 Deferred taxes             34          51
  Total tangible common   $ 5,720       4,753
 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
                       December    September   June 30,    March 31,   December
                       31,         30,                                 31,
                       2012        2012        2012        2012        2011
Income statement
data
In thousands,
except per share
Net income
Net income          $ 296,193     293,462     233,380     206,463     147,740
Amortization of
core deposit and
other
 intangible           8,464       8,598       9,709       10,240      10,476
assets (1)
Merger-related         -           -           4,344       1,657       10,194
expenses (1)
 Net operating      $ 304,657     302,060     247,433     218,360     168,410
income
Earnings per
common share
Diluted earnings     $ 2.16        2.17        1.71        1.50        1.04
per common share
Amortization of
core deposit and
other
 intangible           .07         .07         .08         .08         .08
assets (1)
Merger-related         -           -           .03         .01         .08
expenses (1)
 Diluted net
operating earnings   $ 2.23        2.24        1.82        1.59        1.20
per common share
Other expense
Other expense       $ 626,146     616,027     627,392     639,695     739,583
Amortization of
core deposit and
other
 intangible           (13,865)    (14,085)    (15,907)    (16,774)    (17,162)
assets
Merger-related         -           -           (7,151)     (2,728)     (16,393)
expenses
 Noninterest        $ 612,281     601,942     604,334     620,193     706,028
operating expense
Merger-related
expenses
Salaries and         $ -           -           3,024       1,973       534
employee benefits
Equipment and net      -           -           -           15          189
occupancy
Printing, postage      -           -           -           -           1,475
and supplies
Other costs of         -           -           4,127       740         14,195
operations
 Total             $ -           -           7,151       2,728       16,393
Efficiency ratio
Noninterest
operating expense    $ 612,281     601,942     604,334     620,193     706,028
(numerator)
Taxable-equivalent
net interest           673,929     669,256     654,628     627,094     624,566
income
Other income          453,164     445,733     391,650     376,723     398,454
Less: Gain (loss)
on bank investment     -           372         (408)       45          1
securities
 Net OTTI
losses recognized in   (14,491)    (5,672)     (16,173)    (11,486)    (24,822)
earnings
Denominator         $ 1,141,584   1,120,289   1,062,859   1,015,258   1,047,841
Efficiency ratio      53.63     % 53.73     % 56.86     % 61.09     % 67.38     %
Balance sheet data
In millions
Average assets
Average assets      $ 81,366      80,432      80,087      78,026      78,393
Goodwill              (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (122)       (136)       (151)       (168)       (185)
assets
Deferred taxes        36          39          44          48          54
 Average tangible   $ 77,755      76,810      76,455      74,381      74,737
assets
Average common
equity
Average total        $ 10,105      9,789       9,536       9,376       9,413
equity
Preferred stock       (872)       (870)       (868)       (866)       (864)
 Average common       9,233       8,919       8,668       8,510       8,549
equity
Goodwill              (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (122)       (136)       (151)       (168)       (185)
assets
Deferred taxes        36          39          44          48          54
 Average tangible   $ 5,622       5,297       5,036       4,865       4,893
common equity
At end of quarter
Total assets
Total assets        $ 83,009      81,085      80,808      79,187      77,924
Goodwill              (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (116)       (129)       (143)       (160)       (176)
assets
Deferred taxes        34          38          41          46          51
 Total tangible     $ 79,402      77,469      77,181      75,548      74,274
assets
Total common
equity
Total equity        $ 10,203      9,945       9,630       9,429       9,271
Preferred stock       (873)       (870)       (868)       (867)       (865)
Undeclared dividends
- cumulative           (3)         (4)         (4)         (3)         (3)
preferred stock
 Common equity, net
of undeclared
cumulative
 preferred          9,327       9,071       8,758       8,559       8,403
dividends
Goodwill              (3,525)     (3,525)     (3,525)     (3,525)     (3,525)
Core deposit and
other intangible       (116)       (129)       (143)       (160)       (176)
assets
Deferred taxes        34          38          41          46          51
 Total tangible     $ 5,720       5,455       5,131       4,920       4,753
common equity
(1) After any related tax effect.



SOURCE M&T Bank Corporation

Website: http://www.mandtbank.com
 
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