Exhibit 99

 

INVESTOR CONTACT:		Donald J. MacLeod		FOR IMMEDIATE RELEASE:
		(716) 842-5138		July 20, 2011
MEDIA CONTACT:		C. Michael Zabel
		(716) 842-5385

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER PROFITS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2011.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) for the second quarter of 2011 rose 66% to $2.42 from $1.46 in the year-earlier quarter and were 52% higher than $1.59 in the initial 2011 quarter. GAAP-basis net income in the recent quarter aggregated $322 million, up from $189 million and $206 million in the second quarter of 2010 and the first quarter of 2011, respectively. GAAP-basis net income for the second quarter of 2011 expressed as an annualized rate of return on average assets and average common shareholders’ equity was 1.78% and 14.94%, respectively, improved from 1.11% and 9.67%, respectively, in the year-earlier quarter and 1.23% and 10.16%, respectively, in the first quarter of 2011.

M&T’s second quarter results were impacted by several noteworthy items. Most significantly, M&T completed its acquisition of Wilmington Trust Corporation (“Wilmington Trust”), effective May 16, 2011, including the issuance of 4.7 million common shares. Results of the operations acquired from Wilmington Trust are reflected in M&T’s results since the acquisition date. Assets acquired in the transaction totaled approximately $10.8 billion, including $6.4 billion of loans, while liabilities assumed were

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M&T BANK CORPORATION

 

$10.0 billion, including $8.9 billion of deposits. Although significant merger-related expenses will be incurred in the third and fourth quarters of 2011 as systems conversions are completed and operations are integrated, M & T recognized a net after-tax gain of $42 million, or $.33 of diluted earnings per common share, in the recent quarter related to the Wilmington Trust acquisition. That net gain was comprised of a non-taxable gain of $65 million, which represented the excess of the fair value of assets acquired less liabilities assumed over consideration exchanged, and merger-related expenses, which aggregated $23 million, after applicable tax effect. Such expenses were associated with integrating operations and introducing Wilmington Trust’s former customers to M&T’s products and services. Also contributing to the recent quarter’s improved performance were net gains on investment securities, which aggregated $51 million, after tax effect, or $.41 of diluted earnings per common share. Net securities gains in 2011’s initial quarter contributed $14 million to that quarter’s net income, or $.12 of diluted earnings per common share, while net securities losses during the second quarter of 2010 reduced net income and diluted earnings per common share by $14 million and $.11, respectively. Other actions initiated by M&T during the recent quarter included the purchase from the U.S. Department of the Treasury (“Treasury Department”) and subsequent retirement of $330 million of preferred stock that Wilmington Trust issued pursuant to the Troubled Asset Relief Program (“TARP”), the redemption of $370 million of M&T Series A Preferred Stock issued to the Treasury Department by M&T pursuant to the TARP, and the issuance by M&T of $500 million of fixed rate, perpetual non-cumulative preferred stock to supplement its Tier 1 capital.

 

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M&T BANK CORPORATION

 

Commenting on M&T’s financial results for the recent quarter, René F. Jones, Executive Vice President and Chief Financial Officer, noted, “The second quarter was truly a period of significant accomplishment. On May 16, we welcomed the employees and customers of Wilmington Trust into the M&T family. We are excited about the possibilities this merger brings to M&T’s customers, both existing and new. Above and beyond the positive impact of the merger, M&T’s results reflected higher fee income, lower operating expenses and continued improvement in credit trends. Also exclusive of the impact of the merger, average loans during the quarter grew an annualized 2% and average core deposits rose an annualized 10%.”

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

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, were $2.16 in the recent quarter, up from $1.53 and $1.67 in the second quarter of 2010 and the first quarter of 2011, respectively. Net operating

 

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M&T BANK CORPORATION

 

income during the second quarter of 2011 was $289 million, improved from $198 million and $216 million in the second quarter of 2010 and the first quarter of 2011, respectively. 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 1.69% and 24.40%, respectively, compared with 1.23% and 20.36% in the second quarter of 2010 and 1.36% and 20.16% in the initial 2011 quarter.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income totaled $593 million in the second quarter of 2011, up 3% from $573 million in the year-earlier period and $575 million in the first quarter of 2011. The improvement from the second quarter of 2010 was the result of a $3.6 billion rise in average earning assets, partially offset by a 9 basis point narrowing of the net interest margin to 3.75% in the recent quarter from 3.84% in the year-earlier quarter. The increase in taxable-equivalent net interest income from the initial 2011 quarter was due to a $4.0 billion increase in average earning assets, partially offset by a 17 basis point narrowing of the net interest margin. The narrowing of the net interest margin in the recent quarter as compared with the year-earlier quarter and the first quarter of 2011 was partially attributable to the impact of the Wilmington Trust acquisition. Also contributing to the narrowing were significantly higher earning balances on deposit with the Federal Reserve and higher amounts of agreements to resell securities, which in the aggregate averaged $1.3 billion during the recent quarter and totaled $2.5 billion at June 30, 2011.

 

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M&T BANK CORPORATION

 

Provision for Credit Losses/Asset Quality. Credit quality continued to show solid improvement during the recent quarter. The provision for credit losses was $63 million in the second quarter of 2011, improved from $85 million in the year-earlier quarter and $75 million in the first quarter of 2011. Net charge-offs of loans totaled $59 million during the recent quarter, down from $82 million and $74 million in the second quarter of 2010 and the first quarter of 2011, respectively. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .43% and .64% in the second quarter of 2011 and 2010, respectively, and .58% in the first quarter of 2011.

Loans classified as nonaccrual aggregated $1.26 billion at June 30, 2011, compared with $1.09 billion a year earlier and $1.21 billion at March 31, 2011. Reflected in nonaccrual loans at June 30, 2011 were $77 million of loans obtained in the Wilmington Trust acquisition. Nonaccrual loans as a percentage of total loans were 2.15%, 2.13% and 2.32% at June 30, 2011, June 30, 2010 and March 31, 2011, respectively. Assets taken in foreclosure of defaulted loans were $159 million at June 30, 2011, down from $193 million at June 30, 2010 and $218 million at March 31, 2011. The decrease in such assets at the recent quarter-end resulted from the sale of a commercial real estate property in New York City with a carrying value of $99 million. Reflected in assets taken in foreclosure of defaulted loans at June 30, 2011 were $57 million of such assets obtained in the Wilmington Trust acquisition that were recorded at fair value on the acquisition date. The ratio of nonperforming assets to total loans plus real estate and other foreclosed assets was 2.42% at June 30, 2011, improved from 2.73% at March 31, 2011. That ratio was 2.50% at June 30, 2010.

 

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M&T BANK CORPORATION

 

Loans past due 90 days or more and accruing interest totaled $373 million at the end of the recent quarter, including loans guaranteed by government-related entities of $207 million. Included in such loans at the recent quarter-end were $130 million of loans obtained in the Wilmington Trust acquisition. Loans past due 90 days or more and accruing interest were $203 million and $264 million at June 30, 2010 and March 31, 2011, respectively, including $188 million and $215 million of government guaranteed loans at those respective dates.

Allowance for Credit Losses. M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. Reflecting those analyses, the allowance totaled $908 million at June 30, 2011, up from $895 million and $904 million at June 30, 2010 and March 31, 2011, respectively. Beginning in 2009, GAAP requires that expected credit losses associated with loans obtained in acquisitions be reflected in the estimation of loan fair value as of each respective acquisition date and prohibits any carry-over of the acquired entity’s allowance for credit losses. Excluding amounts related to loans obtained in acquisition transactions subsequent to 2008, the allowance-to-legacy loan ratio was 1.80% at June 30, 2011, compared with 1.86% at June 30, 2010 and 1.81% at March 31, 2011.

Noninterest Income and Expense. Noninterest income totaled $502 million in the second quarter of 2011, compared with $274 million and $314 million in the second quarter of 2010 and the first quarter of 2011, respectively. Reflected in those amounts were net pre-tax gains on investment securities of $84 million and $23 million in the recent quarter and the first quarter of 2011, respectively, and net pre-tax losses from investment securities of $22 million in the second quarter of 2010. The net securities

 

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M&T BANK CORPORATION

 

gains in the recent quarter 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. The net securities gains in the initial 2011 quarter resulted from $39 million of gains realized on the sale of investment securities available for sale having an amortized cost of approximately $484 million. Partially offsetting those securities gains were $16 million of other-than-temporary impairment charges related to certain of M&T’s holdings of privately issued collateralized mortgage obligations. Due largely to the Wilmington Trust acquisition, M&T sold the securities in order to manage its balance sheet size and composition and the resultant capital ratios. The net losses in the second quarter of 2010 were predominantly due to other-than-temporary impairment charges on investment securities.

Excluding gains and losses from investment securities in all periods and the gain recorded in the recent quarter related to the Wilmington Trust acquisition, noninterest income in the second quarter of 2011 aggregated $353 million, improved from $296 million in the year-earlier quarter and $291 million in the initial quarter of 2011. Contributing to the rise from the year-earlier quarter were significantly higher trust income, predominantly due to the Wilmington Trust transaction, letter of credit and other credit-related fees and gains on the sale of previously leased equipment, partially offset by lower service

 

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M&T BANK CORPORATION

 

charges on consumer deposit accounts. The recent quarter’s improvement in noninterest income as compared with the initial 2011 quarter resulted from higher trust income, due to the Wilmington Trust acquisition, and higher consumer service charges and other fee income. Wilmington Trust-related revenues in the recent quarter added $54 million to other income, including $46 million to trust income and $4 million to deposit service charges.

Noninterest expense in the second quarter of 2011 totaled $577 million, compared with $476 million in the year-earlier quarter and $500 million in the first quarter of 2011. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of those expenses, noninterest operating expenses were $525 million in the recent quarter, compared with $461 million in the second quarter of 2010 and $483 million in 2011’s initial quarter. As compared with the second quarter of 2010 and the first quarter of 2011, the recent quarter’s higher level of operating expenses was due, in large part, to 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. M&T’s efficiency ratio was 55.6% in the second quarter of 2011, compared with 53.1% in the year-earlier period and 55.8% in the first quarter of 2011.

 

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M&T BANK CORPORATION

 

Balance Sheet. M&T had total assets of $77.7 billion at June 30, 2011, compared with $68.2 billion at June 30, 2010. Loans and leases, net of unearned discount, were $58.5 billion at the recent quarter-end, compared with $51.1 billion a year earlier. Total deposits rose to $59.2 billion at June 30, 2011 from $47.5 billion at June 30, 2010.

Total shareholders’ equity increased to $9.2 billion at June 30, 2011 from $8.1 billion a year earlier, each representing 11.89% of total assets. Common shareholders’ equity was $8.4 billion, or $66.71 per share, at June 30, 2011, compared with $7.4 billion, or $61.77 per share, at June 30, 2010. Tangible equity per common share rose 19% to $37.00 at the recent quarter-end from $31.15 a year earlier. Common shareholders’ equity per share and tangible equity per common share were $64.43 and $34.38, respectively, at March 31, 2011. In the calculation of tangible equity per common share, common shareholders’ equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances. M&T’s tangible common equity to tangible assets ratio was 6.28% at June 30, 2011, compared with 5.75% and 6.44% at June 30, 2010 and March 31, 2011, respectively.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss second quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID# 82574531. The conference call will be webcast live through M&T’s website at http://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Friday, July 22, 2011 by calling (855)859-2056,

 

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M&T BANK CORPORATION

 

or (404)537-3406 for international participants, and by making reference to ID# 82574531. The event will also be archived and available by 7:00 p.m. today on M&T’s website at http://ir.mandtbank.com/conference.cfm.

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

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

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; legislation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax

 

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M&T BANK CORPORATION

 

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.

 

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M&T BANK CORPORATION

Financial Highlights

 

		Three months ended June 30												Six months ended June 30
Amounts in thousands, except per share		2011				2010				Change				2011				2010				Change
Performance
Net income		$	322,358				188,749				71	%		$	528,631				339,704				56	%
Net income available to common shareholders			297,179				173,597				71				487,308				310,037				57
Per common share:
Basic earnings		$	2.43				1.47				65	%		$	4.04				2.63				54	%
Diluted earnings			2.42				1.46				66				4.02				2.61				54
Cash dividends		$	.70				.70				—			$	1.40				1.40				—
Common shares outstanding:
Average - diluted (1)			122,796				118,878				3	%			121,332				118,569				2	%
Period end (2)			125,622				119,161				5				125,622				119,161				5
Return on (annualized):
Average total assets			1.78	%			1.11	%							1.52	%			1.00	%
Average common shareholders’ equity			14.94	%			9.67	%							12.62	%			8.78	%
Taxable-equivalent net interest income		$	592,670				573,332				3	%		$	1,167,801				1,135,589				3	%
Yield on average earning assets			4.40	%			4.63	%							4.49	%			4.61	%
Cost of interest-bearing liabilities			.89	%			1.04	%							.90	%			1.04	%
Net interest spread			3.51	%			3.59	%							3.59	%			3.57	%
Contribution of interest-free funds			.24	%			.25	%							.24	%			.24	%
Net interest margin			3.75	%			3.84	%							3.83	%			3.81	%
Net charge-offs to average total net loans (annualized)			.43	%			.64	%							.50	%			.69	%
Net operating results (3)
Net operating income		$	289,487				197,752				46	%		$	505,847				358,705				41	%
Diluted net operating earnings per common share			2.16				1.53				41				3.83				2.77				38
Return on (annualized):
Average tangible assets			1.69	%			1.23	%							1.53	%			1.11	%
Average tangible common equity			24.40	%			20.36	%							22.37	%			18.89	%
Efficiency ratio			55.56	%			53.06	%							55.65	%			54.45	%
		At June 30
		2011				2010				Change
Loan quality
Nonaccrual loans		$	1,258,975				1,090,135				15	%
Real estate and other foreclosed assets			158,873				192,631				-18	%
Total nonperforming assets		$	1,417,848				1,282,766				11	%
Accruing loans past due 90 days or more		$	373,197				203,081				84	%
Renegotiated loans		$	234,726				228,847				3	%
Government guaranteed loans included in totals above:
Nonaccrual loans		$	78,732				40,271				96	%
Accruing loans past due 90 days or more			207,135				187,682				10	%
Purchased impaired loans (4):
Outstanding customer balance		$	1,538,419				130,808				—
Carrying amount			752,978				61,524				—
Nonaccrual loans to total net loans			2.15	%			2.13	%
Allowance for credit losses to:
Legacy loans			1.80	%			1.86	%
Total loans			1.55	%			1.75	%

 

(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 on page 19.

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

 

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M&T BANK CORPORATION

Financial Highlights, Five Quarter Trend

 

		Three months ended
Amounts in thousands, except per share		June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010
Performance
Net income		$	322,358				206,273				204,442				192,015				188,749
Net income available to common shareholders			297,179				190,121				189,678				176,789				173,597
Per common share:
Basic earnings		$	2.43				1.59				1.59				1.49				1.47
Diluted earnings			2.42				1.59				1.59				1.48				1.46
Cash dividends		$	.70				.70				.70				.70				.70
Common shares outstanding:
Average - diluted (1)			122,796				119,852				119,503				119,155				118,878
Period end (2)			125,622				120,410				119,774				119,435				119,161
Return on (annualized):
Average total assets			1.78	%			1.23	%			1.18	%			1.12	%			1.11	%
Average common shareholders’ equity			14.94	%			10.16	%			10.03	%			9.56	%			9.67	%
Taxable-equivalent net interest income		$	592,670				575,131				580,227				575,733				573,332
Yield on average earning assets			4.40	%			4.60	%			4.58	%			4.65	%			4.63	%
Cost of interest-bearing liabilities			.89	%			.91	%			.97	%			1.03	%			1.04	%
Net interest spread			3.51	%			3.69	%			3.61	%			3.62	%			3.59	%
Contribution of interest-free funds			.24	%			.23	%			.24	%			.25	%			.25	%
Net interest margin			3.75	%			3.92	%			3.85	%			3.87	%			3.84	%
Net charge-offs to average total net loans (annualized)			.43	%			.58	%			.60	%			.73	%			.64	%
Net operating results (3)
Net operating income		$	289,487				216,360				196,235				200,225				197,752
Diluted net operating earnings per common share			2.16				1.67				1.52				1.55				1.53
Return on (annualized):
Average tangible assets			1.69	%			1.36	%			1.20	%			1.24	%			1.23	%
Average tangible common equity			24.40	%			20.16	%			18.43	%			19.58	%			20.36	%
Efficiency ratio			55.56	%			55.75	%			52.55	%			53.40	%			53.06	%
Loan quality		June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010
Nonaccrual loans		$	1,258,975				1,211,111				1,239,194				1,099,560				1,090,135
Real estate and other foreclosed assets			158,873				218,203				220,049				192,600				192,631
Total nonperforming assets		$	1,417,848				1,429,314				1,459,243				1,292,160				1,282,766
Accruing loans past due 90 days or more		$	373,197				264,480				269,593				214,769				203,081
Renegotiated loans		$	234,726				241,190				233,342				233,671				228,847
Government guaranteed loans included in totals above:
Nonaccrual loans		$	78,732				69,353				56,787				38,232				40,271
Accruing loans past due 90 days or more			207,135				214,505				214,111				194,223				187,682
Purchased impaired loans (4):
Outstanding customer balance		$	1,538,419				206,253				219,477				113,964				130,808
Carrying amount			752,978				88,589				97,019				52,728				61,524
Nonaccrual loans to total net loans			2.15	%			2.32	%			2.38	%			2.16	%			2.13	%
Allowance for credit losses to:
Legacy loans			1.80	%			1.81	%			1.82	%			1.86	%			1.86	%
Total loans			1.55	%			1.73	%			1.74	%			1.76	%			1.75	%

 

(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 on page 20.

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

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income

 

			$1,355,736				$1,355,736				$1,355,736				$1,355,736				$1,355,736				$1,355,736
		Three months ended												Six months ended
		June 30												June 30
Dollars in thousands		2011				2010				Change				2011				2010				Change
Interest income		$	688,253				684,784				1	%		$	1,355,736				1,361,170				—	%
Interest expense			102,051				117,557				-13				200,730				237,609				-16
Net interest income			586,202				567,227				3				1,155,006				1,123,561				3
Provision for credit losses			63,000				85,000				-26				138,000				190,000				-27
Net interest income after provision for credit losses			523,202				482,227				8				1,017,006				933,561				9
Other income
Mortgage banking revenues			42,151				47,084				-10				87,307				88,560				-1
Service charges on deposit accounts			119,716				128,976				-7				229,447				249,271				-8
Trust income			75,592				30,169				151				104,913				61,097				72
Brokerage services income			14,926				12,788				17				29,222				25,894				13
Trading account and foreign exchange gains			6,798				3,797				79				15,077				8,496				77
Gain on bank investment securities			110,744				10				—				150,097				469				—
Other-than-temporary impairment losses recognized in earnings			(26,530	)			(22,380	)			—				(42,571	)			(49,182	)			—
Equity in earnings of Bayview Lending Group LLC			(5,223	)			(6,179	)			—				(11,901	)			(11,893	)			—
Other revenues from operations			163,482				79,292				106				254,485				158,551				61
Total other income			501,656				273,557				83				816,076				531,263				54
Other expense
Salaries and employee benefits			300,178				245,861				22				566,268				509,907				11
Equipment and net occupancy			59,670				55,431				8				116,333				110,832				5
Printing, postage and supplies			9,723				8,549				14				18,925				17,592				8
Amortization of core deposit and other intangible assets			14,740				14,833				-1				27,054				31,308				-14
FDIC assessments			26,609				21,608				23				45,703				42,956				6
Other costs of operations			165,975				129,786				28				302,183				252,835				20
Total other expense			576,895				476,068				21				1,076,466				965,430				12
Income before income taxes			447,963				279,716				60				756,616				499,394				52
Applicable income taxes			125,605				90,967				38				227,985				159,690				43
Net income		$	322,358				188,749				71	%		$	528,631				339,704				56	%

 

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M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

 

		Three months ended
Dollars in thousands		June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010
Interest income		$	688,253				667,483				682,725				685,900				684,784
Interest expense			102,051				98,679				108,628				116,032				117,557
Net interest income			586,202				568,804				574,097				569,868				567,227
Provision for credit losses			63,000				75,000				85,000				93,000				85,000
Net interest income after provision for credit losses			523,202				493,804				489,097				476,868				482,227
Other income
Mortgage banking revenues			42,151				45,156				35,013				61,052				47,084
Service charges on deposit accounts			119,716				109,731				111,129				117,733				128,976
Trust income			75,592				29,321				31,031				30,485				30,169
Brokerage services income			14,926				14,296				11,648				12,127				12,788
Trading account and foreign exchange gains			6,798				8,279				12,755				6,035				3,797
Gain on bank investment securities			110,744				39,353				861				1,440				10
Other-than-temporary impairment losses recognized in earnings			(26,530	)			(16,041	)			(27,567	)			(9,532	)			(22,380	)
Equity in earnings of Bayview Lending Group LLC			(5,223	)			(6,678	)			(7,415	)			(6,460	)			(6,179	)
Other revenues from operations			163,482				91,003				119,483				77,019				79,292
Total other income			501,656				314,420				286,938				289,899				273,557
Other expense
Salaries and employee benefits			300,178				266,090				243,413				246,389				245,861
Equipment and net occupancy			59,670				56,663				50,879				54,353				55,431
Printing, postage and supplies			9,723				9,202				8,435				7,820				8,549
Amortization of core deposit and other intangible assets			14,740				12,314				13,269				13,526				14,833
FDIC assessments			26,609				19,094				18,329				18,039				21,608
Other costs of operations			165,975				136,208				134,949				140,006				129,786
Total other expense			576,895				499,571				469,274				480,133				476,068
Income before income taxes			447,963				308,653				306,761				286,634				279,716
Applicable income taxes			125,605				102,380				102,319				94,619				90,967
Net income		$	322,358				206,273				204,442				192,015				188,749

 

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M&T BANK CORPORATION

Condensed Consolidated Balance Sheet

 

		June 30
Dollars in thousands		2011				2010				Change
ASSETS
Cash and due from banks		$	1,297,335				1,045,886				24	%
Interest-bearing deposits at banks			2,275,450				117,826				—
Federal funds sold and agreements to resell securities			415,580				10,000				—
Trading account assets			502,986				487,692				3
Investment securities			6,492,265				8,097,572				-20
Loans and leases:
Commercial, financial, etc.			15,040,892				13,017,598				16
Real estate - commercial			24,263,726				20,612,905				18
Real estate - consumer			6,970,921				5,729,126				22
Consumer			12,265,690				11,701,657				5
Total loans and leases, net of unearned discount			58,541,229				51,061,286				15
Less: allowance for credit losses			907,589				894,667				1
Net loans and leases			57,633,640				50,166,619				15
Goodwill			3,524,625				3,524,625				—
Core deposit and other intangible assets			275,057				152,712				80
Other assets			5,310,216				4,550,684				17
Total assets		$	77,727,154				68,153,616				14	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	18,598,828				13,960,723				33	%
Interest-bearing deposits			40,078,834				33,010,520				21
Deposits at Cayman Islands office			551,553				551,428				—
Total deposits			59,229,215				47,522,671				25
Short-term borrowings			567,144				2,158,957				-74
Accrued interest and other liabilities			1,557,685				1,114,615				40
Long-term borrowings			7,128,916				9,255,529				-23
Total liabilities			68,482,960				60,051,772				14
Shareholders’ equity:
Preferred			860,901				735,350				17
Common (1)			8,383,293				7,366,494				14
Total shareholders’ equity			9,244,194				8,101,844				14
Total liabilities and shareholders’ equity		$	77,727,154				68,153,616				14	%

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $228.8 million at June 30, 2011 and $197.2 million at June 30, 2010.

 

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M&T BANK CORPORATION

Condensed Consolidated Balance Sheet, Five Quarter Trend

 

Dollars in thousands		June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010
ASSETS
Cash and due from banks		$	1,297,335				972,005				908,755				1,070,625				1,045,886
Interest-bearing deposits at banks			2,275,450				100,101				101,222				401,624				117,826
Federal funds sold and agreements to resell securities			415,580				10,300				25,000				443,700				10,000
Trading account assets			502,986				413,737				523,834				536,702				487,692
Investment securities			6,492,265				6,507,165				7,150,540				7,662,715				8,097,572
Loans and leases:
Commercial, financial, etc.			15,040,892				13,826,299				13,390,610				12,788,136				13,017,598
Real estate - commercial			24,263,726				20,891,615				21,183,161				20,580,450				20,612,905
Real estate - consumer			6,970,921				6,154,960				5,928,056				5,754,432				5,729,126
Consumer			12,265,690				11,245,807				11,488,555				11,668,540				11,701,657
Total loans and leases, net of unearned discount			58,541,229				52,118,681				51,990,382				50,791,558				51,061,286
Less: allowance for credit losses			907,589				903,703				902,941				894,720				894,667
Net loans and leases			57,633,640				51,214,978				51,087,441				49,896,838				50,166,619
Goodwill			3,524,625				3,524,625				3,524,625				3,524,625				3,524,625
Core deposit and other intangible assets			275,057				113,603				125,917				139,186				152,712
Other assets			5,310,216				5,024,694				4,573,929				4,570,822				4,550,684
Total assets		$	77,727,154				67,881,208				68,021,263				68,246,837				68,153,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits		$	18,598,828				15,219,562				14,557,568				14,665,603				13,960,723
Interest-bearing deposits			40,078,834				34,264,867				33,641,800				33,335,104				33,010,520
Deposits at Cayman Islands office			551,553				1,063,670				1,605,916				653,916				551,428
Total deposits			59,229,215				50,548,099				49,805,284				48,654,623				47,522,671
Short-term borrowings			567,144				504,676				947,432				1,211,683				2,158,957
Accrued interest and other liabilities			1,557,685				1,015,495				1,070,701				1,157,250				1,114,615
Long-term borrowings			7,128,916				7,305,420				7,840,151				8,991,508				9,255,529
Total liabilities			68,482,960				59,373,690				59,663,568				60,015,064				60,051,772
Shareholders’ equity:
Preferred			860,901				743,385				740,657				737,979				735,350
Common (1)			8,383,293				7,764,133				7,617,038				7,493,794				7,366,494
Total shareholders’ equity			9,244,194				8,507,518				8,357,695				8,231,773				8,101,844
Total liabilities and shareholders’ equity		$	77,727,154				67,881,208				68,021,263				68,246,837				68,153,616

 

 

(1)	Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $228.8 million at June 30, 2011, $197.5 million at March 31, 2011, $205.2 million at December 31, 2010, $192.6 million at September 30, 2010 and $197.2 million at June 30, 2010.

 

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M&T BANK CORPORATION

Condensed Consolidated Average Balance Sheet

and Annualized Taxable-equivalent Rates

 

		Three months ended																								Change in balance								Six months ended
		June 30,								June 30,								March 31,								June 30, 2011 from								June 30
Dollars in millions		2011								2010								2011								June 30,				March 31,				2011								2010								Change in
		Balance				Rate				Balance				Rate				Balance				Rate				2010				2011				Balance				Rate				Balance				Rate				balance
ASSETS
Interest-bearing deposits at banks		$	804				.24	%			81				.02	%			115				.13	%			894	%			597	%		$	462				.22	%			104				.02	%			345	%
Federal funds sold and agreements to resell securities			622				.09				10				.41				15				.53				—				—				320				.10				17				.28				—
Trading account assets			101				1.32				66				.96				110				1.61				51				-8				105				1.47				63				.88				66
Investment securities			6,394				4.03				8,376				4.27				7,219				4.17				-24				-11				6,805				4.11				8,274				4.35				-18
Loans and leases, net of unearned discount
Commercial, financial, etc.			14,623				3.89				13,096				4.03				13,573				3.93				12				8				14,101				3.91				13,251				3.95				6
Real estate - commercial			22,471				4.59				20,759				4.64				21,003				4.71				8				7				21,741				4.65				20,813				4.56				4
Real estate - consumer			6,559				5.00				5,653				5.35				6,054				5.06				16				8				6,308				5.03				5,697				5.33				11
Consumer			11,808				5.03				11,770				5.24				11,342				5.13				—				4				11,576				5.08				11,850				5.25				-2
Total loans and leases, net			55,461				4.55				51,278				4.71				51,972				4.67				8				7				53,726				4.61				51,611				4.67				4
Total earning assets			63,382				4.40				59,811				4.63				59,431				4.60				6				7				61,418				4.49				60,069				4.61				2
Goodwill			3,525								3,525								3,525								—				—				3,525								3,525								—
Core deposit and other intangible assets			198								160								119								24				66				159								168								-5
Other assets			5,349								4,838								4,970								11				8				5,160								4,845								7
Total assets		$	72,454								68,334								68,045								6	%			6	%		$	70,262								68,607								2	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts		$	742				.15				619				.14				628				.13				20	%			18	%		$	685				.14				602				.14				14	%
Savings deposits			30,043				.28				25,942				.33				27,669				.28				16				9				28,863				.28				25,508				.33				13
Time deposits			6,657				1.16				6,789				1.55				5,700				1.36				-2				17				6,181				1.25				6,998				1.60				-12
Deposits at Cayman Islands office			820				.09				972				.16				1,182				.14				-16				-31				999				.12				1,104				.13				-9
Total interest-bearing deposits			38,262				.42				34,322				.56				35,179				.45				11				9				36,728				.44				34,212				.58				7
Short-term borrowings			707				.08				1,763				.17				1,344				.15				-60				-47				1,024				.13				2,063				.16				-50
Long-term borrowings			7,076				3.48				9,454				2.91				7,368				3.26				-25				-4				7,222				3.37				9,805				2.82				-26
Total interest-bearing liabilities			46,045				.89				45,539				1.04				43,891				.91				1				5				44,974				.90				46,080				1.04				-2
Noninterest-bearing deposits			16,195								13,610								14,501								19				12				15,353								13,453								14
Other liabilities			1,402								1,149								1,202								22				17				1,302								1,121								16
Total liabilities			63,642								60,298								59,594								6				7				61,629								60,654								2
Shareholders’ equity			8,812								8,036								8,451								10				4				8,633								7,953								9
Total liabilities and shareholders’ equity		$	72,454								68,334								68,045								6	%			6	%		$	70,262								68,607								2	%
Net interest spread							3.51								3.59								3.69																3.59								3.57
Contribution of interest-free funds							.24								.25								.23																.24								.24
Net interest margin							3.75	%							3.84	%							3.92	%															3.83	%							3.81	%

 

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M&T BANK CORPORATION

Reconciliation of Quarterly GAAP to Non-GAAP Measures

 

		Three months ended June 30								Six months ended June 30
		2011				2010				2011				2010
Income statement data
In thousands, except per share
Net income
Net income		$	322,358				188,749			$	528,631				339,704
Amortization of core deposit and other intangible assets (1)			8,974				9,003				16,452				19,001
Merger-related gains (1)			(64,930	)			—				(64,930	)			—
Merger-related expenses (1)			23,085				—				25,694				—
Net operating income		$	289,487				197,752			$	505,847				358,705
Earnings per common share
Diluted earnings per common share		$	2.42				1.46			$	4.02				2.61
Amortization of core deposit and other intangible assets (1)			.07				.07				.13				.16
Merger-related gains (1)			(.52	)			—				(.53	)			—
Merger-related expenses (1)			.19				—				.21				—
Diluted net operating earnings per common share		$	2.16				1.53			$	3.83				2.77
Other expense
Other expense		$	576,895				476,068			$	1,076,466				965,430
Amortization of core deposit and other intangible assets			(14,740	)			(14,833	)			(27,054	)			(31,308	)
Merger-related expenses			(36,996	)			—				(41,291	)			—
Noninterest operating expense		$	525,159				461,235			$	1,008,121				934,122
Merger-related expenses
Salaries and employee benefits		$	15,305				—			$	15,312				—
Equipment and net occupancy			25				—				104				—
Printing, postage and supplies			318				—				465				—
Other costs of operations			21,348				—				25,410				—
Total		$	36,996				—			$	41,291				—
Balance sheet data
In millions
Average assets
Average assets		$	72,454				68,334			$	70,262				68,607
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(198	)			(160	)			(159	)			(168	)
Deferred taxes			46				30				34				32
Average tangible assets		$	68,777				64,679			$	66,612				64,946
Average common equity
Average total equity		$	8,812				8,036			$	8,633				7,953
Preferred stock			(716	)			(734	)			(730	)			(733	)
Average common equity			8,096				7,302				7,903				7,220
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(198	)			(160	)			(159	)			(168	)
Deferred taxes			46				30				34				32
Average tangible common equity		$	4,419				3,647			$	4,253				3,559
At end of quarter
Total assets
Total assets		$	77,727				68,154			$	77,727				68,154
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(275	)			(152	)			(275	)			(152	)
Deferred taxes			68				28				68				28
Total tangible assets		$	73,995				64,505			$	73,995				64,505
Total common equity
Total equity		$	9,244				8,102			$	9,244				8,102
Preferred stock			(861	)			(735	)			(861	)			(735	)
Undeclared dividends - cumulative preferred stock			(3	)			(7	)			(3	)			(7	)
Common equity, net of undeclared cumulative preferred dividends			8,380				7,360				8,380				7,360
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(275	)			(152	)			(275	)			(152	)
Deferred taxes			68				28				68				28
Total tangible common equity		$	4,648				3,711			$	4,648				3,711

 

(1)	After any related tax effect.

 

 

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M&T BANK CORPORATION

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

 

		Three months ended
		June 30, 2011				March 31, 2011				December 31, 2010				September 30, 2010				June 30, 2010
Income statement data
In thousands, except per share
Net income
Net income		$	322,358				206,273				204,442				192,015				188,749
Amortization of core deposit and other intangible assets (1)			8,974				7,478				8,054				8,210				9,003
Merger-related gain (1)			(64,930	)			—				(16,730	)			—				—
Merger-related expenses (1)			23,085				2,609				469				—				—
Net operating income		$	289,487				216,360				196,235				200,225				197,752
Earnings per common share
Diluted earnings per common share		$	2.42				1.59				1.59				1.48				1.46
Amortization of core deposit and other intangible assets (1)			.07				.06				.07				.07				.07
Merger-related gain (1)			(.52	)			—				(.14	)			—				—
Merger-related expenses (1)			.19				.02				—				—				—
Diluted net operating earnings per common share		$	2.16				1.67				1.52				1.55				1.53
Other expense
Other expense		$	576,895				499,571				469,274				480,133				476,068
Amortization of core deposit and other intangible assets			(14,740	)			(12,314	)			(13,269	)			(13,526	)			(14,833	)
Merger-related expenses			(36,996	)			(4,295	)			(771	)			—				—
Noninterest operating expense		$	525,159				482,962				455,234				466,607				461,235
Merger-related expenses
Salaries and employee benefits		$	15,305				7				7				—				—
Equipment and net occupancy			25				79				44				—				—
Printing, postage and supplies			318				147				74				—				—
Other costs of operations			21,348				4,062				646				—				—
Total		$	36,996				4,295				771				—				—
Balance sheet data
In millions
Average assets
Average assets		$	72,454				68,045				68,502				67,811				68,334
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(198	)			(119	)			(132	)			(146	)			(160	)
Deferred taxes			46				22				24				27				30
Average tangible assets		$	68,777				64,423				64,869				64,167				64,679
Average common equity
Average total equity		$	8,812				8,451				8,322				8,181				8,036
Preferred stock			(716	)			(743	)			(740	)			(737	)			(734	)
Average common equity			8,096				7,708				7,582				7,444				7,302
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(198	)			(119	)			(132	)			(146	)			(160	)
Deferred taxes			46				22				24				27				30
Average tangible common equity		$	4,419				4,086				3,949				3,800				3,647
At end of quarter
Total assets
Total assets		$	77,727				67,881				68,021				68,247				68,154
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(275	)			(113	)			(126	)			(139	)			(152	)
Deferred taxes			68				20				23				26				28
Total tangible assets		$	73,995				64,263				64,393				64,609				64,505
Total common equity
Total equity		$	9,244				8,508				8,358				8,232				8,102
Preferred stock			(861	)			(743	)			(741	)			(738	)			(735	)
Undeclared dividends - cumulative preferred stock			(3	)			(7	)			(6	)			(6	)			(7	)
Common equity, net of undeclared cumulative preferred dividends			8,380				7,758				7,611				7,488				7,360
Goodwill			(3,525	)			(3,525	)			(3,525	)			(3,525	)			(3,525	)
Core deposit and other intangible assets			(275	)			(113	)			(126	)			(139	)			(152	)
Deferred taxes			68				20				23				26				28
Total tangible common equity		$	4,648				4,140				3,983				3,850				3,711

 

(1)	After any related tax effect.

 

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