M&T BANK CORP - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


x		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2002


o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-9861

M&T BANK CORPORATION
(Exact name of registrant as specified in its charter)


New York (State or other jurisdiction of incorporation or organization)		16-0968385 (I.R.S. Employer Identification No.)


One M & T Plaza Buffalo, New York (Address of principal executive offices)		14203 (Zip Code)

(716) 842-5445
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X No

Number of shares of the registrant’s Common Stock, $.50 par value, outstanding as of the close of business on July 26, 2002: 91,836,751 shares.

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
	Item 1. Financial Statements.
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
	Item 3. Quantitative and Qualitative Disclosures About Market Risk.
PART II. OTHER INFORMATION
	Item 1. Legal Proceedings.
	Item 2. Changes in Securities and Use of Proceeds.
	Item 3. Defaults Upon Senior Securities.
	Item 4. Submission of Matters to a Vote of Security Holders.
	Item 5. Other Information.
	Item 6. Exhibits and Reports on Form 8-K.
SIGNATURES

M&T BANK CORPORATION

FORM 10-Q

For the Quarterly Period Ended June 30, 2002


Table of Contents of Information Required in Report		Page

Part I. FINANCIAL INFORMATION


Item 1.	Financial Statements.

	CONSOLIDATED BALANCE SHEET — June 30, 2002 and December 31, 2001	3

	CONSOLIDATED STATEMENT OF INCOME — Three and six months ended June 30, 2002 and 2001	4

	CONSOLIDATED STATEMENT OF CASH FLOWS — Six months ended June 30, 2002 and 2001	5

	CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY — Six months ended June 30, 2002 and 2001	6

	CONSOLIDATED SUMMARY OF CHANGES IN ALLOWANCE FOR CREDIT LOSSES — Six months ended June 30, 2002 and 2001	6

	NOTES TO FINANCIAL STATEMENTS	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	38

Part II. OTHER INFORMATION


Item 1.	Legal Proceedings.	38

Item 2.	Changes in Securities and Use of Proceeds.	38

Item 3.	Defaults Upon Senior Securities.	38

Item 4.	Submission of Matters to a Vote of Security Holders.	38

Item 5.	Other Information.	38

Item 6.	Exhibits and Reports on Form 8-K.	38


SIGNATURES			38

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

M&T BANK CORPORATION AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEET (Unaudited)
		June 30,			December 31,
Dollars in thousands, except per share		2002			2001

Assets	Cash and due from banks	$	864,158			965,664




	Money-market assets




	Interest-bearing deposits at banks		5,685			4,341




	Federal funds sold and agreements to resell securities		44,261			41,086




	Trading account		42,568			38,929

	Total money-market assets		92,514			84,356

	Investment securities




	Available for sale (cost: $2,538,790 at June 30, 2002;




	$2,627,509 at December 31, 2001)		2,593,939			2,663,184




	Held to maturity (market value: $106,542 at June 30, 2002;




	$122,107 at December 31, 2001)		105,184			121,508




	Other (market value: $261,389 at June 30, 2002;




	$239,445 at December 31, 2001)		261,389			239,445

	Total investment securities		2,960,512			3,024,137

	Loans and leases		25,811,365			25,395,468




	Unearned discount		(207,796	)		(207,708	)




	Allowance for credit losses		(436,395	)		(425,008	)

	Loans and leases, net		25,167,174			24,762,752

	Premises and equipment		247,401			261,877




	Goodwill		1,097,553			1,097,553




	Core deposit and other intangible assets		143,589			170,273




	Accrued interest and other assets		1,112,630			1,083,584

	Total assets	$	31,685,531			31,450,196

Liabilities	Noninterest-bearing deposits	$	3,800,508			3,704,004




	NOW accounts		963,786			930,400




	Savings deposits		8,438,081			7,980,065




	Time deposits		7,437,924			8,188,036




	Deposits at foreign office		1,217,273			777,895

	Total deposits		21,857,572			21,580,400

	Federal funds purchased and agreements




	to repurchase securities		1,132,441			2,133,558




	Other short-term borrowings		1,111,831			912,272




	Accrued interest and other liabilities		394,882			422,746




	Long-term borrowings		4,211,920			3,461,769

	Total liabilities		28,708,646			28,510,745

Stockholders’ equity	Preferred stock, $1 par, 1,000,000 shares authorized,




	none outstanding		—			—




	Common stock, $.50 par, 150,000,000 shares authorized,




	97,139,347 shares issued at June 30, 2002




	and December 31, 2001		48,570			48,570




	Common stock issuable, 127,675 shares at June 30, 2002;




	130,428 shares at December 31, 2001		6,214			6,162




	Additional paid-in capital		1,062,094			1,096,340




	Retained earnings		2,213,358			2,017,700




	Accumulated other comprehensive income, net		35,354			22,819




	Treasury stock - common, at cost - 5,074,726 shares at




	June 30, 2002; 3,455,373 shares at December 31, 2001		(388,705	)		(252,140	)

	Total stockholders' equity		2,976,885			2,939,451

	Total liabilities and stockholders' equity	$	31,685,531			31,450,196

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M&T BANK CORPORATION AND SUBSIDIARIES


CONSOLIDATED STATEMENT OF INCOME (Unaudited)
		Three months ended June 30						Six months ended June 30
In thousands, except per share		2002			2001			2002		2001

Interest income	Loans and leases, including fees	$	420,203			483,955		$	840,146		974,567




	Money-market assets




	Deposits at banks		22			29			40		66




	Federal funds sold and agreements




	to resell securities		1,119			164			2,189		951




	Trading account		48			82			106		184




	Investment securities




	Fully taxable		35,043			48,837			69,940		99,441




	Exempt from federal taxes		4,990			6,558			10,191		12,994

	Total interest income		461,425			539,625			922,612		1,088,203

Interest expense	NOW accounts		1,055			2,206			1,974		5,391




	Savings deposits		26,973			34,529			53,946		72,681




	Time deposits		63,722			120,721			136,620		260,909




	Deposits at foreign office		1,516			3,027			3,307		6,432




	Short-term borrowings		11,825			38,526			24,708		72,795




	Long-term borrowings		46,858			53,468			91,521		110,866

	Total interest expense		151,949			252,477			312,076		529,074

	Net interest income		309,476			287,148			610,536		559,129




	Provision for credit losses		28,000			24,000			52,000		42,500

	Net interest income after provision for credit losses		281,476			263,148			558,536		516,629

Other income	Mortgage banking revenues		23,281			25,029			51,193		50,689




	Service charges on deposit accounts		40,811			36,313			80,336		68,847




	Trust income		15,318			16,317			31,123		32,144




	Brokerage services income		12,078			9,470			22,997		19,480




	Trading account and foreign exchange gains		386			1,566			1,429		2,368




	Gain (loss) on sales of bank investment securities		(170	)		1,550			1		1,629




	Other revenues from operations		29,475			27,591			58,328		54,406

	Total other income		121,179			117,836			245,407		229,563

Other expense	Salaries and employee benefits		115,650			109,455			229,053		215,342




	Equipment and net occupancy		25,727			27,727			52,931		55,885




	Printing, postage and supplies		5,871			6,230			11,904		13,304




	Amortization of goodwill		—			15,762			—		30,509




	Amortization of core deposit and other intangible assets		13,142			15,387			26,685		30,451




	Other costs of operations		62,826			58,451			125,876		122,322

	Total other expense		223,216			233,012			446,449		467,813

	Income before taxes		179,439			147,972			357,494		278,379




	Income taxes		57,945			53,164			115,436		99,905

	Net income	$	121,494			94,808		$	242,058		178,474

	Net income per common share




	Basic	$	1.31			.98		$	2.60		1.85




	Diluted		1.26			.94			2.51		1.79




	Cash dividends per common share	$	.25			.25		$	.50		.50




	Average common shares outstanding						&

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