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M&T Bank Corporation Announces Second Quarter Profits

Jul 17, 2012

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

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

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

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

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

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

Diluted net operating earnings per common share, which exclude the impact of amortization of core deposit and other intangible assets and merger-related gains and expenses, but include the effect of securities gains and losses, were $1.82 in the recent quarter, compared with $2.16 and $1.59 in the second quarter of 2011 and the first quarter of 2012, respectively.  Net operating income during the second quarter of 2012 was $247 million, compared with $289 million in the second quarter of 2011 and $218 million in the initial 2012 quarter.  Expressed as an annualized rate of return on average tangible assets and average tangible common shareholders' equity, net operating income in the recently completed quarter was 1.30% and 18.54%, respectively, compared with 1.69% and 24.24% in the year-earlier quarter and 1.18% and 16.79% in the first quarter of 2012.

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

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

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

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

Allowance for Credit Losses.  M&T regularly performs detailed analyses of individual borrowers and portfolios for purposes of assessing the adequacy of the allowance for credit losses. 

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

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

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

Noninterest expense in the second quarter of 2012 totaled $627 million, compared with $577 million in the year-earlier quarter and $640 million in the first quarter of 2012.  Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses.  Exclusive of those expenses, noninterest operating expenses were $604 million in the recent quarter, compared with $525 million in the second quarter of 2011 and $620 million in 2012's initial quarter.  The most significant factor for the higher level of operating expenses in the recent quarter as compared with the year-earlier quarter was the impact of the operations obtained in the Wilmington Trust acquisition.  As compared with the first quarter of 2012, the recent quarter's lower level of operating expenses was due, in large part, to a decline in salaries and employee benefits, including stock-based compensation. 

The efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities and merger-related gains), measures the relationship of operating expenses to revenues.  M&T's efficiency ratio was 56.9% in the second quarter of 2012, compared with 55.6% in the year-earlier period and 61.1% in the first quarter of 2012. 

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

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

Conference Call.  Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 10:30 a.m. Eastern Time.  Those wishing to participate in the call may dial (877) 780-2276.  International participants, using any applicable international calling codes, may dial (973) 582-2700.  Callers should reference M&T Bank Corporation or the conference ID# 99533519. The conference call will be webcast live through M&T's website at http://ir.mandtbank.com/events.cfm.  A replay of the call will be available until Thursday, July 19, 2012 by calling (800) 585-8367, or (404) 537-3406 for international participants, and by making reference to ID# 99533519.  The event will also be archived and available by 7:00 p.m. today on M&T's website at http://ir.mandtbank.com/events.cfm.  

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

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

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

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

INVESTOR CONTACT:

Donald J. MacLeod


(716) 842-5138





MEDIA CONTACT:

C. Michael Zabel


(716) 842-5385

 

M&T BANK CORPORATION














Financial Highlights





















Three months ended







Six months ended




Amounts in thousands,



June 30







June 30




 except per share



2012


2011


Change





2012


2011


Change




















Performance




































Net income


$

233,380


322,358


-28

%


$

439,843


528,631


-17

%

Net income available to common shareholders 



214,716


297,179


-28

%



402,958


487,308


-17

%



















Per common share:


















  Basic earnings 


$

1.71


2.43


-30

%


$

3.21


4.04


-21

%

  Diluted earnings 



1.71


2.42


-29

%



3.20


4.02


-20

%

  Cash dividends 


$

.70


.70


-




$

1.40


1.40


-




















Common shares outstanding:


















  Average - diluted (1) 



125,897


122,796


3

%



125,756


121,332


4

%

  Period end (2) 



126,645


125,622


1

%



126,645


125,622


1

%



















Return on (annualized):


















  Average total assets 



1.17

%

1.78

%






1.12

%

1.52

%



  Average common shareholders' equity 



10.12

%

14.94

%






9.58

%

12.62

%





















Taxable-equivalent net interest income 


$

654,628


592,670


10

%


$

1,281,722


1,167,801


10

%



















Yield on average earning assets 



4.25

%

4.40

%






4.24

%

4.49

%



Cost of interest-bearing liabilities 



.76

%

.89

%






.78

%

.90

%



Net interest spread 



3.49

%

3.51

%






3.46

%

3.59

%



Contribution of interest-free funds 



.25

%

.24

%






.25

%

.24

%



Net interest margin  



3.74

%

3.75

%






3.71

%

3.83

%





















Net charge-offs to average total 


















  net loans (annualized) 



.34

%

.43

%






.33

%

.50

%





















Net operating results (3)




































Net operating income 


$

247,433


289,487


-15

%


$

465,793


505,847


-8

%

Diluted net operating earnings per common share 



1.82


2.16


-16

%



3.41


3.83


-11

%

Return on (annualized):


















  Average tangible assets 



1.30

%

1.69

%






1.24

%

1.53

%



  Average tangible common equity 



18.54

%

24.24

%






17.68

%

22.30

%



Efficiency ratio 



56.86

%

55.56

%






58.92

%

55.65

%




























































 

At  June 30













Loan quality



2012


2011


Change





























Nonaccrual loans 


$

968,328


1,117,584


-13

%









Real estate and other foreclosed assets 



115,580


158,873


-27

%









  Total nonperforming assets 


$

1,083,908


1,276,457


-15

%



























Accruing loans past due 90 days or more (4) 


$

274,598


239,527


15

%



























Government guaranteed loans included in totals


















  above:


















  Nonaccrual loans 


$

48,712


42,337


15

%









  Accruing loans past due 90 days or more 



255,495


205,644


24

%



























Renegotiated loans 


$

267,111


234,726


14

%



























Acquired accruing loans past due 90 


















  days or more (5) 


$

162,487


228,304


-29

%



























Purchased impaired loans (6):


















  Outstanding customer balance 


$

1,037,458


1,473,237













  Carrying amount 



560,700


752,978































Nonaccrual loans to total net loans 



1.54

%

1.91

%






























Allowance for credit losses to total loans 



1.46

%

1.55

%
































(1)  Includes common stock equivalents.

(2)  Includes common stock issuable under deferred compensation plans.

(3)  Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in
       the calculation of the efficiency ratio, are net of applicable income tax effects.  Reconciliations of net income with net operating income appear herein.

(4)  Excludes acquired loans. 

(5)  Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

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

 

M&T BANK CORPORATION














Financial Highlights, Five Quarter Trend
























Three months ended




Amounts in thousands,




June 30,


March 31,



December 31,



September 30,


June 30,



 except per share




2012


2012



2011



2011


2011























Performance








































Net income 



$

233,380



206,463



147,740



183,108



322,358




Net income available to common shareholders 




214,716



188,241



129,804



164,671



297,179
























Per common share:




















  Basic earnings 



$

1.71



1.50



1.04



1.32



2.43




  Diluted earnings 




1.71



1.50



1.04



1.32



2.42




  Cash dividends 



$

.70



.70



.70



.70



.70
























Common shares outstanding:




















  Average - diluted (1)




125,897



125,616



124,736



124,860



122,796




  Period end (2)




126,645



126,534



125,752



125,678



125,622
























Return on (annualized):




















  Average total assets 




1.17

%


1.06

%

.75

%

.94

%


1.78

%



  Average common shareholders' equity  




10.12

%


9.04

%

6.12

%

7.84

%


14.94

%























Taxable-equivalent net interest income



$

654,628



627,094



624,566



623,265



592,670
























Yield on average earning assets 




4.25

%


4.24

%

4.17

%

4.29

%


4.40

%



Cost of interest-bearing liabilities 




.76

%


.80

%

.82

%

.86

%


.89

%



Net interest spread 




3.49

%


3.44

%

3.35

%

3.43

%


3.51

%



Contribution of interest-free funds 




.25

%


.25

%

.25

%

.25

%


.24

%



Net interest margin 




3.74

%


3.69

%

3.60

%

3.68

%


3.75

%























Net charge-offs to average total 




















  net loans (annualized) 




.34

%


.32

%


.50

%


.39

%


.43

%























Net operating results (3)








































Net operating income  



$

247,433



218,360



168,410



209,996



289,487




Diluted net operating earnings per common share 




1.82



1.59



1.20



1.53



2.16




Return on (annualized):




















  Average tangible assets 




1.30

%


1.18

%

.89

%

1.14

%


1.69

%



  Average tangible common equity 




18.54

%


16.79

%

12.36

%

16.07

%


24.24

%



Efficiency ratio 




56.86

%


61.09

%

67.38

%

61.79

%


55.56

%











































































June 30,


March 31,


December 31,


September 30,


June 30,



Loan quality




2012


2012


2011


2011


2011























Nonaccrual loans 



$

968,328



1,065,229



1,097,581



1,113,788



1,117,584




Real estate and other foreclosed assets 




115,580



140,297



156,592



149,868



158,873




  Total nonperforming assets 



$

1,083,908



1,205,526



1,254,173



1,263,656



1,276,457
























Accruing loans past due 90 days or more (4) 



$

274,598



273,081



287,876



239,970



239,527
























Government guaranteed loans included in totals




















  above:




















  Nonaccrual loans 



$

48,712



44,717



40,529



32,937



42,337




  Accruing loans past due 90 days or more 




255,495



252,622



252,503



210,407



205,644
























Renegotiated loans 



$

267,111



213,024



214,379



223,233



234,726
























Acquired accruing loans past due 90 




















  days or more (5) 



$

162,487



165,163



163,738



211,958



228,304
























Purchased impaired loans (6):




















  Outstanding customer balance 



$

1,037,458



1,158,829



1,267,762



1,393,777



1,473,237




  Carrying amount 




560,700



604,779



653,362



703,632



752,978
























Nonaccrual loans to total net loans 




1.54

%


1.75

%


1.83

%

1.91

%


1.91

%






















Allowance for credit losses to total loans 




1.46

%

1.49

%

1.51

%


1.56

%

1.55

%










































(1)  Includes common stock equivalents.




















(2)  Includes common stock issuable under deferred compensation plans.














(3)  Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except

       in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)  Excludes acquired loans. 




















(5)  Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

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













M&T BANK CORPORATION












Condensed Consolidated Statement of Income


































Three months ended






Six months ended






June 30






June 30




Dollars in thousands


2012


2011


Change




2012


2011


Change


















Interest income 

$

737,386


688,253


7

%


$

1,451,481


1,355,736


7

%

Interest expense 


89,403


102,051


-12




183,109


200,730


-9


















Net interest income 


647,983


586,202


11




1,268,372


1,155,006


10


















Provision for credit losses 


60,000


63,000


-5




109,000


138,000


-21


















Net interest income after
















   provision for credit losses 


587,983


523,202


12




1,159,372


1,017,006


14


















Other income
















     Mortgage banking revenues 


69,514


42,151


65




125,706


87,307


44


     Service charges on deposit accounts 


110,982


119,716


-7




219,871


229,447


-4


     Trust income 


122,275


75,592


62




239,228


104,913


128


     Brokerage services income 


16,172


14,926


8




30,073


29,222


3


     Trading account and foreign exchange gains 


6,238


6,798


-8




16,809


15,077


11


     Gain (loss) on bank investment securities 


(408)


110,744


-




(363)


150,097


-


     Other-than-temporary impairment losses 
















        recognized in earnings 


(16,173)


(26,530)


-




(27,659)


(42,571)


-


     Equity in earnings of Bayview Lending Group LLC 


(6,635)


(5,223)


-




(11,387)


(11,901)


-


     Other revenues from operations 


89,685


163,482


-45




176,095


254,485


-31


          Total other income 


391,650


501,656


-22




768,373


816,076


-6


















Other expense
















     Salaries and employee benefits 


323,686


300,178


8




669,784


566,268


18


     Equipment and net occupancy 


65,376


59,670


10




130,419


116,333


12


     Printing, postage and supplies 


11,368


9,723


17




23,240


18,925


23


     Amortization of core deposit and other 
















        intangible assets 


15,907


14,740


8




32,681


27,054


21


     FDIC assessments 


24,962


26,609


-6




53,911


45,703


18


     Other costs of operations 


186,093


165,975


12




357,052


302,183


18


          Total other expense 


627,392


576,895


9




1,267,087


1,076,466


18


















Income before income taxes 


352,241


447,963


-21




660,658


756,616


-13


















Applicable income taxes 


118,861


125,605


-5




220,815


227,985


-3


















Net income 

$

233,380


322,358


-28

%


$

439,843


528,631


-17

%

M&T BANK CORPORATION












Condensed Consolidated Statement of Income, Five Quarter Trend
































Three months ended




June 30,


March 31,


December 31,


September 30,


June 30,

Dollars in thousands


2012


2012


2011


2011


2011

















Interest income 

$

737,386


714,095


716,000


720,351


688,253

Interest expense 


89,403


93,706


97,969


103,632


102,051

















Net interest income 


647,983


620,389


618,031


616,719


586,202

















Provision for credit losses 


60,000


49,000


74,000


58,000


63,000

















Net interest income after
















   provision for credit losses 


587,983


571,389


544,031


558,719


523,202

















Other income
















     Mortgage banking revenues 


69,514


56,192


40,573


38,141


42,151

     Service charges on deposit accounts 


110,982


108,889


104,071


121,577


119,716

     Trust income 


122,275


116,953


113,820


113,652


75,592

     Brokerage services income 


16,172


13,901


13,341


13,907


14,926

     Trading account and foreign exchange gains 


6,238


10,571


7,971


4,176


6,798

     Gain (loss) on bank investment securities 


(408)


45


1


89


110,744

     Other-than-temporary impairment losses 
















        recognized in earnings 


(16,173)


(11,486)


(24,822)


(9,642)


(26,530)

     Equity in earnings of Bayview Lending Group LLC 


(6,635)


(4,752)


(5,419)


(6,911)


(5,223)

     Other revenues from operations 


89,685


86,410


148,918


93,393


163,482

          Total other income 


391,650


376,723


398,454


368,382


501,656

















Other expense
















     Salaries and employee benefits 


323,686


346,098


312,528


325,197


300,178

     Equipment and net occupancy 


65,376


65,043


65,080


68,101


59,670

     Printing, postage and supplies 


11,368


11,872


11,399


10,593


9,723

     Amortization of core deposit and other 
















        intangible assets 


15,907


16,774


17,162


17,401


14,740

     FDIC assessments 


24,962


28,949


27,826


26,701


26,609

     Other costs of operations  


186,093


170,959


305,588


214,026


165,975

          Total other expense 


627,392


639,695


739,583


662,019


576,895

















Income before income taxes 


352,241


308,417


202,902


265,082


447,963

















Applicable income taxes 


118,861


101,954


55,162


81,974


125,605

















Net income 

$

233,380


206,463


147,740


183,108


322,358

















 

 

M&T BANK CORPORATION






Condensed Consolidated Balance Sheet





















June 30




Dollars in thousands



2012


2011


Change











ASSETS


















Cash and due from banks 


$

1,421,831


1,297,335


10

%










Interest-bearing deposits at banks 



1,069,717


2,275,450


-53











Federal funds sold and agreements









  to resell securities 



1,000


415,580


-100











Trading account assets 



544,938


502,986


8











Investment securities 



7,057,300


6,492,265


9











Loans and leases:


















   Commercial, financial, etc. 



16,395,587


15,040,892


9


   Real estate - commercial 



24,898,707


24,263,726


3


   Real estate - consumer 



9,811,525


6,970,921


41


   Consumer 



11,745,453


12,265,690


-4


     Total loans and leases, net of unearned discount 



62,851,272


58,541,229


7


        Less: allowance for credit losses 



917,028


907,589


1











  Net loans and leases 



61,934,244


57,633,640


7











Goodwill 



3,524,625


3,524,625


-











Core deposit and other intangible assets 



143,713


210,957


-32











Other assets 



5,110,210


5,374,316


-5











  Total assets 


$

80,807,578


77,727,154


4

%



















LIABILITIES AND SHAREHOLDERS' EQUITY


















Noninterest-bearing deposits 


$

22,854,794


18,598,828


23

%










Interest-bearing deposits 



39,327,849


40,078,834


-2











Deposits at Cayman Islands office 



366,164


551,553


-34











  Total deposits 



62,548,807


59,229,215


6











Short-term borrowings 



975,575


567,144


72











Accrued interest and other liabilities 



1,965,421


1,557,685


26











Long-term borrowings 



5,687,868


7,128,916


-20











  Total liabilities 



71,177,671


68,482,960


4











Shareholders' equity:


















   Preferred 



868,433


860,901


1


   Common (1)  



8,761,474


8,383,293


5











     Total shareholders' equity 



9,629,907


9,244,194


4











  Total liabilities and shareholders' equity 


$

80,807,578


77,727,154


4

%



















(1)  Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $277.8 million at
       June 30, 2012 and $228.8 million at June 30, 2011.

M&T BANK CORPORATION













Condensed Consolidated Balance Sheet, Five Quarter Trend
























June 30,


March 31,



December 31,



September 30,



June 30,



Dollars in thousands



2012


2012



2011



2011



2011





















ASSETS




































Cash and due from banks 


$

1,421,831



1,344,092



1,449,547



1,349,057



1,297,335





















Interest-bearing deposits at banks 



1,069,717



1,282,040



154,960



2,226,779



2,275,450





















Federal funds sold and agreements


















  to resell securities 



1,000



-



2,850



5,000



415,580





















Trading account assets 



544,938



517,620



561,834



605,557



502,986





















Investment securities 



7,057,300



7,195,296



7,673,154



7,173,797



6,492,265





















Loans and leases:




































   Commercial, financial, etc. 



16,395,587



15,938,672



15,734,436



15,218,502



15,040,892



   Real estate - commercial 



24,898,707



24,486,555



24,411,114



23,961,306



24,263,726



   Real estate - consumer 



9,811,525



8,696,594



7,923,165



7,065,451



6,970,921



   Consumer 



11,745,453



11,799,929



12,027,290



12,156,005



12,265,690



     Total loans and leases, net of unearned discount



62,851,272



60,921,750



60,096,005



58,401,264



58,541,229



        Less: allowance for credit losses 



917,028



909,006



908,290



908,525



907,589





















  Net loans and leases 



61,934,244



60,012,744



59,187,715



57,492,739



57,633,640





















Goodwill 



3,524,625



3,524,625



3,524,625



3,524,625



3,524,625





















Core deposit and other intangible assets 



143,713



159,619



176,394



193,556



210,957