M&T Bank (MTB) 8-K M&T Bank Corporation Announces 2009 Fourth Quarter and Full-year Profits

Exhibit 99

INVESTOR CONTACT:	Donald J. MacLeod	FOR IMMEDIATE RELEASE: January 20, 2010
	(716) 842-5138

MEDIA CONTACT:	C. Michael Zabel
	(716) 842-5385

M&T BANK CORPORATION ANNOUNCES 2009 FOURTH QUARTER
AND FULL-YEAR PROFITS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for 2009.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) increased to $1.04 in the fourth quarter of 2009, up 13% from 2008’s fourth quarter. GAAP-basis net income in the recent quarter totaled $137 million. Expressed as an annualized rate of return on average assets and average common stockholders’ equity, GAAP-basis net income for the fourth quarter of 2009 was .79% and 7.09%, respectively.

During the recent quarter, M&T recognized $21 million of after-tax other-than-temporary impairment charges on certain available-for-sale investment securities. However, because those investment securities were previously reflected at fair value on the consolidated balance sheet, the impairment charges did not reduce shareholders’ equity. M&T also incurred merger-related expenses of $4 million, after applicable tax effect, associated with its second quarter acquisition of Provident Bankshares Corporation (“Provident”) and with its third quarter agreement with the Federal Deposit Insurance Corporation (“FDIC”) to assume all of the deposits and acquire certain assets of Bradford Bank (“Bradford”). Aggregating $25 million, those two charges reduced diluted earnings per common share in the final

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quarter of 2009 by $.21. GAAP-basis diluted earnings per common share and net income for the year ended December 31, 2009 were $2.89 and $380 million, respectively. Reflected in 2009’s results were $36 million of net merger-related expenses, after tax effect, or $.31 of diluted earnings per common share. GAAP-basis net income for 2009 expressed as a rate of return on average assets and average common stockholders’ equity was .56% and 5.07%, respectively.

Reflecting on M&T’s financial performance, René F. Jones, Executive Vice President and Chief Financial Officer, commented, “By sticking with our approach of providing lending and banking services in our local markets, M&T produced solid earnings for both the fourth quarter and the full-year of 2009. We were pleased to see a continued widening of our net interest margin, which improved 10 basis points to 3.71% in the quarter. That key measure has increased for three consecutive quarters. Credit costs in the fourth quarter were down slightly and continue to be below current industry experience. The tangible common equity ratio strengthened impressively during the recent quarter, and was 5.13% at the end of 2009, up from 4.89% at September 30, 2009. Finally, our 2009 acquisitions of Provident and Bradford in the Mid-Atlantic region have proved to be meaningful, both in terms of the customer base to which we now provide our banking services and in our profitability, as they supplemented M&T’s full-year diluted net operating earnings per common share by $.16.”

Diluted earnings per common share were $.92 and $.97 in the fourth quarter of 2008 and the third quarter of 2009, respectively. Net income for those respective quarters was $102 million and $128 million. Net income expressed as an annualized rate of return on average assets and average common

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stockholders’ equity for the fourth quarter of 2008 was .63% and 6.41%, respectively, compared with ..73% and 6.72%, respectively, in the third quarter of 2009. For the year ended December 31, 2008, diluted earnings per common share and net income were $5.01 and $556 million, respectively. Expressed as a rate of return on average assets and average common stockholders’ equity, net income was .85% and 8.64%, respectively, in 2008.

Supplemental Reporting of Non-GAAP Results of Operations. M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T, since such expenses 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 herein on pages 19 and 20.

During the fourth quarter of 2009, diluted net operating earnings per common share were $1.16, up 16% from $1.00 in the similar 2008 period and 18% above $.98 in 2009’s third quarter. Net operating income for the fourth quarters of 2009 and 2008 was $151 million and $112 million, respectively, compared with $129 million in the third quarter of 2009. For the three months ended December 31, 2009, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common equity was .92% and 16.73%, respectively, up

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from .72% and 15.01% in the corresponding period of 2008 and .78% and 14.87%, respectively, in 2009’s third quarter.

Diluted net operating earnings per common share were $3.54 in 2009 and $5.39 in 2008. Net operating income for 2009 and 2008 aggregated $455 million and $599 million, respectively. Net operating income in 2009 expressed as a rate of return on average tangible assets and average tangible common stockholders’ equity was .71% and 13.42%, respectively, compared with .97% and 19.63% in 2008.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income was $565 million during the fourth quarter of 2009, up 15% from $491 million in the similar 2008 quarter and 2% higher than $553 million in the third quarter of 2009. The growth in such income as compared with the third quarter of 2009 reflects a widening of the net interest margin, which improved to 3.71% from 3.61%. That improvement resulted from lower interest rates paid on deposits and borrowings and continued growth in noninterest-bearing deposits.

Taxable-equivalent net interest income was $2.08 billion in 2009, 6% higher than $1.96 billion in 2008. Contributing to that improvement was growth in average loans and leases outstanding, which rose 4% to $51.0 billion in 2009 from $48.8 billion in 2008, and a widening of the net interest margin, which rose to 3.49% from 3.38%. The increase in average loans and leases was attributable to the 2009 acquisition transactions and the improved net interest margin resulted from lower interest rates paid on deposits and borrowings.

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Provision for Credit Losses/Asset Quality. The provision for credit losses was $145 million during the recently completed quarter, compared with $151 million in the corresponding 2008 period. Net charge-offs of loans were $135 million in the final quarter of 2009, representing an annualized 1.03% of average loans outstanding, improved from $144 million or 1.17% in the year-earlier quarter. During 2009’s third quarter, the provision for credit losses totaled $154 million and net charge-offs aggregated $141 million, or 1.07% of average loans outstanding. The provision for credit losses rose to $604 million for the year ended December 31, 2009 from $412 million in 2008. Net loan charge-offs in 2009 totaled $514 million, or 1.01% of average loans outstanding, compared with $383 million or .78% of average loans in 2008.

Reflecting the poor economic environment and its impact on businesses and consumers, loans classified as nonaccrual totaled $1.33 billion, or 2.56% of total loans at December 31, 2009, compared with $755 million or 1.54% a year earlier and $1.23 billion or 2.35% at September 30, 2009. Assets taken in foreclosure of defaulted loans were $95 million at December 31, 2009, compared with $100 million at December 31, 2008 and $85 million at September 30, 2009.

In an effort to assist borrowers, M&T has modified the terms of select residential real estate loans, consisting largely of loans in M&T’s portfolio of Alt-A loans. At December 31, 2009, outstanding balances of those modified loans totaled $292 million, of which $108 million were classified as nonaccrual. The remaining modified loans have demonstrated payment capability consistent with the modified terms and, accordingly, were classified as renegotiated loans and were accruing interest at the 2009 year-end.

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Loans past due 90 days or more and accruing interest totaled $208 million at the recent year-end, including loans guaranteed by government-related entities of $193 million. Such past due loans were $159 million and $183 million at December 31, 2008 and September 30, 2009, respectively, including $114 million and $173 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 for credit losses was $878 million at December 31, 2009, increased from $788 million a year earlier and $868 million at September 30, 2009. Beginning in 2009, GAAP requires that expected credit losses associated with loans obtained in an acquisition be reflected in the estimation of loan fair value as of each respective acquisition date and prohibits any carryover of an allowance for credit losses. Excluding loans obtained in the Provident and Bradford acquisition transactions, the allowance-to-legacy loan ratio increased to 1.83% at December 31, 2009 from 1.61% at December 31, 2008. That same ratio was 1.81% at September 30, 2009.

Noninterest Income and Expense. Excluding gains and losses from investment securities, noninterest income of $300 million in the fourth quarter of 2009 was up 13% from $265 million in the similar 2008 quarter. Also excluding gains and losses from investment securities and the $29 million gain recorded on the Bradford transaction, noninterest income in 2009’s third quarter was $296 million. On the same basis, noninterest income was $1.16 billion in 2009, 6% higher than $1.09 billion in 2008. Contributing to the improvements in the 2009 periods as compared

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with 2008 were higher mortgage banking revenues and service charges on acquisition-related deposit accounts.

Noninterest expense in the final quarter of 2009 totaled $478 million, compared with $447 million in the year-earlier quarter and $500 million in 2009’s third quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of these expenses, noninterest operating expenses were $455 million in the recent quarter, compared with $431 million in 2008’s fourth quarter and $469 million in the third quarter of 2009. Noninterest expense for the year ended December 31, 2009 totaled $1.98 billion, compared with $1.73 billion in 2008. Excluding those expenses considered to be nonoperating in nature, noninterest operating expenses were $1.83 billion in 2009 and $1.66 billion in 2008. The higher levels of operating expenses in the 2009 periods as compared with 2008 were due largely to the operations obtained in the 2009 acquisitions and higher deposit insurance assessments, including a $33 million special assessment levied by the FDIC in the second quarter of 2009. Partially offsetting those factors were reversals of the valuation allowance for capitalized residential mortgage servicing rights of $4 million in the fourth quarter and $22 million for the full year of 2009, as compared with additions to that allowance of $19 million and $16 million in those respective periods of 2008. Contributing to the decline in noninterest operating expenses from the third to the fourth quarter of 2009 were lower costs for salaries, including incentive compensation.

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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 gains on merger transactions), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio improved to 52.7% in the fourth quarter of 2009 from 57.0% in the year-earlier quarter and 55.2% in the third quarter of 2009. M&T’s efficiency ratio for the years ended December 31, 2009 and 2008 was 56.5% and 54.4%, respectively. If the second quarter 2009 special assessment by the FDIC was excluded from the computation, the efficiency ratio for 2009 would have been 55.5%.

Balance Sheet. M&T had total assets of $68.9 billion at December 31, 2009, up from $65.8 billion a year earlier. Loans and leases, net of unearned discount, totaled $51.9 billion at the 2009 year-end, up 6% from $49.0 billion at December 31, 2008. Total deposits were $47.4 billion at December 31, 2009, 11% higher than $42.6 billion at the end of 2008. Deposits at domestic offices rose $7.9 billion, or 20%, to $46.4 billion at the recent year-end from $38.5 billion at December 31, 2008. When excluding the impact of the 2009 acquisition transactions, core customer deposits jumped 16% to $39.9 billion at December 31, 2009 from $34.3 billion a year earlier. That substantial rise was largely driven by a $4.0 billion or 45% increase in noninterest-bearing deposits.

Total stockholders’ equity was $7.8 billion and $6.8 billion at December 31, 2009 and 2008, representing 11.26% and 10.31% respectively, of total assets. Common stockholders’ equity was $7.0 billion, or $59.31 per share at December 31, 2009, up from $6.2 billion, or $56.29 per share, a year earlier. Tangible equity per common share was $28.27 and $25.94 at December 31,

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2009 and 2008, respectively. In the calculation of tangible equity per common share, stockholders’ equity is reduced by the carrying values of goodwill and core deposit and other intangible assets, net of applicable deferred tax balances, which aggregated $3.7 billion and $3.4 billion at December 31, 2009 and 2008, respectively. M&T’s tangible common equity to tangible assets ratio was 5.13% at December 31, 2009, compared with 4.59% and 4.89% at December 31, 2008 and September 30, 2009, respectively.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss fourth quarter and full year financial results today at 2:00 p.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 #49940743. The conference call will be webcast live on M&T’s website athttp://ir.mandtbank.com/conference.cfm. A replay of the call will be available until Friday, January 22, 2010 by calling 800-642-1687, or 706-645-9291 for international participants, and by making reference to ID #49940743. The event will also be archived and available by 7:00 p.m. today on M&T’s website athttp://ir.mandtbank.com/conference.cfm.

M&T is a bank holding company whose banking subsidiaries, M&T Bank and M&T Bank, National Association, operate branch offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey and the District of Columbia.

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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-bearingliabilities, 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 legislation; regulatory supervision and oversight, including monetary policy and required capital levels; 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-

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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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Financial Highlights

	Three months ended								Year ended
	December 31								December 31
Amounts in thousands, except per share	2009			2008			Change		2009			2008			Change
Performance
Net income	$	136,818			102,241		34	%	$	379,891			555,887			–32	%
Net income available to common shareholders		122,910			101,451		21			332,006			555,096			–40
Per common share:
Basic earnings	$	1.05			.92		14	%	$	2.90			5.04			–42	%
Diluted earnings		1.04			.92		13			2.89			5.01			–42
Cash dividends	$	.70			.70		—		$	2.80			2.80			—
Common shares outstanding:
Average — diluted (1)		117,672			110,620		6	%		114,776			110,904			3	%
Period end (2)		118,298			110,444		7			118,298			110,444			7
Return on (annualized):
Average total assets		.79	%		.63	%				.56	%		.85	%
Average common stockholders’ equity		7.09	%		6.41	%				5.07	%		8.64	%
Taxable-equivalent net interest income	$	564,606			491,042		15	%	$	2,077,577			1,961,657			6	%
Yield on average earning assets		4.58	%		5.35	%				4.61	%		5.69	%
Cost of interest-bearing liabilities		1.13	%		2.32	%				1.40	%		2.68	%
Net interest spread		3.45	%		3.03	%				3.21	%		3.01	%
Contribution of interest-free funds		.26	%		.34	%				.28	%		.37	%
Net interest margin		3.71	%		3.37	%				3.49	%		3.38	%
Net charge-offs to average total net loans (annualized)		1.03	%		1.17	%				1.01	%		.78	%
Net operating results (3)
Net operating income	$	150,776			111,784		35	%		$455,376			598,551			–24	%
Diluted net operating earnings per common share		1.16			1.00		16			3.54			5.39			–34
Return on (annualized):
Average tangible assets		.92	%		.72	%				.71	%		.97	%
Average tangible common equity		16.73	%		15.01	%				13.42	%		19.63	%
Efficiency ratio		52.69	%		57.03	%				56.50	%		54.35	%

	At December 31
	2009			2008			Change
Loan quality
Nonaccrual loans	$	1,331,702			755,397			76	%
Real estate and other foreclosed assets		94,604			99,617			-5	%
Total nonperforming assets	$	1,426,306			855,014			67	%
Accruing loans past due 90 days or more	$	208,080			158,991			31	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	38,579			32,506			19	%
Accruing loans past due 90 days or more		193,495			114,183			69	%
Renegotiated loans	$	212,548			91,575			132	%
Purchased impaired loans (4):
Outstanding customer balance	$	172,772			—			—	%
Carrying amount		88,170			—			—	%
Nonaccrual loans to total net loans		2.56	%		1.54	%
Allowance for credit losses to:
M&T legacy loans		1.83	%		1.61	%
Total loans		1.69	%		1.61	%

(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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Financial Highlights, Five Quarter Trend

	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Amounts in thousands, except per share	2009			2009			2009			2009			2008
Performance
Net income	$	136,818			127,664			51,188			64,221			102,241
Net income available to common shareholders		122,910			113,894			40,516			54,618			101,451
Per common share:
Basic earnings	$	1.05			.97			.36			.49			.92
Diluted earnings		1.04			.97			.36			.49			.92
Cash dividends	$	.70			.70			.70			.70			.70
Common shares outstanding:
Average — diluted (1)		117,672			117,547			113,521			110,439			110,620
Period end (2)		118,298			118,156			118,012			111,132			110,444
Return on (annualized):
Average total assets		.79	%		.73	%		.31	%		.40	%		.63	%
Average common stockholders’ equity		7.09	%		6.72	%		2.53	%		3.61	%		6.41	%
Taxable-equivalent net interest income	$	564,606			553,450			506,781			452,740			491,042
Yield on average earning assets		4.58	%		4.60	%		4.62	%		4.65	%		5.35	%
Cost of interest-bearing liabilities		1.13	%		1.26	%		1.47	%		1.74	%		2.32	%
Net interest spread		3.45	%		3.34	%		3.15	%		2.91	%		3.03	%
Contribution of interest-free funds		.26	%		.27	%		.28	%		.28	%		.34	%
Net interest margin		3.71	%		3.61	%		3.43	%		3.19	%		3.37	%
Net charge-offs to average total net loans (annualized)		1.03	%		1.07	%		1.09	%		.83	%		1.17	%
Net operating results (3)
Net operating income	$	150,776			128,761			100,805			75,034			111,784
Diluted net operating earnings per common share		1.16			.98			.79			.59			1.00
Return on (annualized):
Average tangible assets		.92	%		.78	%		.64	%		.50	%		.72	%
Average tangible common equity		16.73	%		14.87	%		12.08	%		9.36	%		15.01	%
Efficiency ratio		52.69	%		55.21	%		60.03	%		58.68	%		57.03	%
	December 31,			September 30,			June 30,			March 31,			December 31,
	2009			2009			2009			2009			2008
Loan quality
Nonaccrual loans	$	1,331,702			1,228,341			1,111,423			1,003,987			755,397
Real estate and other foreclosed assets		94,604			84,676			90,461			100,270			99,617
Total nonperforming assets	$	1,426,306			1,313,017			1,201,884			1,104,257			855,014
Accruing loans past due 90 days or more	$	208,080			182,750			155,125			142,842			158,991
Government guaranteed loans included in totals above:
Nonaccrual loans	$	38,579			38,590			38,075			38,460			32,506
Accruing loans past due 90 days or more		193,495			172,701			143,886			127,237			114,183
Renegotiated loans	$	212,548			190,917			170,950			130,932			91,575
Purchased impaired loans (4):
Outstanding customer balance	$	172,772			209,138			170,400			—			—
Carrying amount		88,170			108,058			97,730			—			—
Nonaccrual loans to total net loans		2.56	%		2.35	%		2.11	%		2.05	%		1.54	%
Allowance for credit losses to:
M&T legacy loans		1.83	%		1.81	%		1.76	%		1.73	%		1.61	%
Total loans		1.69	%		1.66	%		1.62	%		1.73	%		1.61	%

(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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Condensed Consolidated Statement of Income

	Three months ended									Year ended
	December 31									December 31
Dollars in thousands	2009			2008			Change			2009			2008			Change
Interest income	$	692,669			774,501			–11	%	$	2,725,197			3,277,591			–17	%
Interest expense		133,950			288,426			–54			669,449			1,337,795			–50
Net interest income		558,719			486,075			15			2,055,748			1,939,796			6
Provision for credit losses		145,000			151,000			–4			604,000			412,000			47
Net interest income after provision for credit losses		413,719			335,075			23			1,451,748			1,527,796			–5
Other income
Mortgage banking revenues		50,176			39,721			26			207,561			156,012			33
Service charges on deposit accounts		127,185			106,367			20			469,195			430,532			9
Trust income		29,660			36,630			–19			128,568			156,149			–18
Brokerage services income		14,396			15,284			–6			57,611			64,186			–10
Trading account and foreign exchange gains		6,669			2,003			233			23,125			17,630			31
Gain on bank investment securities		354			392			—			1,165			34,470			—
Total other-than-temporary impairment (“OTTI”) losses		(61,626	)		(23,896	)		—			(264,363	)		(182,221	)		—
Portion of OTTI losses recognized in other comprehensive income (before taxes)		27,330			—			—			126,066			—			—
Net OTTI losses recognized in earnings		(34,296	)		(23,896	)		—			(138,297	)		(182,221	)		—
Equity in earnings of Bayview Lending Group LLC		(10,635	)		(8,687	)		—			(25,898	)		(37,453	)		—
Other revenues from operations		82,381			73,603			12			325,076			299,674			8
Total other income		265,890			241,417			10			1,048,106			938,979			12
Other expense
Salaries and employee benefits		247,080			232,410			6			1,001,873			957,086			5
Equipment and net occupancy		53,703			47,795			12			211,391			188,845			12
Printing, postage and supplies		9,338			8,401			11			38,216			35,860			7
Amortization of core deposit and other intangible assets		16,730			15,708			7			64,255			66,646			–4
Deposit insurance		19,902			2,094			850			96,519			6,689			1,343
Other costs of operations		131,698			140,411			–6			568,309			471,870			20
Total other expense		478,451			446,819			7			1,980,563			1,726,996			15
Income before income taxes		201,158			129,673			55			519,291			739,779			–30
Applicable income taxes		64,340			27,432			135			139,400			183,892			–24
Net income	$	136,818			102,241			34	%	$	379,891			555,887			–32	%

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15-15-15-15-15

M&T BANK CORPORATION

Condensed Consolidated Statement of Income, Five Quarter Trend

	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
Dollars in thousands	2009			2009			2009			2009			2008
Interest income	$	692,669			700,593			677,423			654,512			774,501
Interest expense		133,950			152,938			175,856			206,705			288,426
Net interest income		558,719			547,655			501,567			447,807			486,075
Provision for credit losses		145,000			154,000			147,000			158,000			151,000
Net interest income after provision for credit losses		413,719			393,655			354,567			289,807			335,075
Other income
Mortgage banking revenues		50,176			48,169			52,983			56,233			39,721
Service charges on deposit accounts		127,185			128,502			112,479			101,029			106,367
Trust income		29,660			31,586			32,442			34,880			36,630
Brokerage services income		14,396			14,329			13,493			15,393			15,284
Trading account and foreign exchange gains		6,669			7,478			7,543			1,435			2,003
Gain (loss) on bank investment securities		354			(56	)		292			575			392
Total other-than-temporary impairment (“OTTI”) losses		(61,626	)		(64,232	)		(75,697	)		(62,808	)		(23,896	)
Portion of OTTI losses recognized in other comprehensive income (before taxes)		27,330			17,199			50,928			30,609			—
Net OTTI losses recognized in earnings		(34,296	)		(47,033	)		(24,769	)		(32,199	)		(23,896	)
Equity in earnings of Bayview Lending Group LLC		(10,635	)		(10,912	)		(207	)		(4,144	)		(8,687	)
Other revenues from operations		82,381			106,163			77,393			59,139			73,603
Total other income		265,890			278,226			271,649			232,341			241,417
Other expense
Salaries and employee benefits		247,080			255,449			249,952			249,392			232,410
Equipment and net occupancy		53,703			58,195			51,321			48,172			47,795
Printing, postage and supplies		9,338			8,229			11,554			9,095			8,401
Amortization of core deposit and other intangible assets		16,730			16,924			15,231			15,370			15,708
Deposit insurance		19,902			21,124			49,637			5,856			2,094
Other costs of operations		131,698			140,135			186,015			110,461			140,411
Total other expense		478,451			500,056			563,710			438,346			446,819
Income before income taxes		201,158			171,825			62,506			83,802			129,673
Applicable income taxes		64,340			44,161			11,318			19,581			27,432
Net income	$	136,818			127,664			51,188			64,221			102,241

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16-16-16-16-16

M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

	December 31
Dollars in thousands	2009		2008		Change
ASSETS
Cash and due from banks	$	1,226,223		1,546,804		–21	%
Interest-bearing deposits at banks		133,335		10,284		1,197
Federal funds sold and agreements to resell securities		20,119		111,347		–82
Trading account assets		386,984		617,821		–37
Investment securities		7,780,609		7,919,207		–2
Loans and leases:
Commercial, financial, etc.		13,479,447		14,261,882		–5
Real estate — commercial		20,949,931		18,837,665		11
Real estate — consumer		5,463,463		4,904,424		11
Consumer		12,043,845		10,996,492		10
Total loans and leases, net of unearned discount		51,936,686		49,000,463		6
Less: allowance for credit losses		878,022		787,904		11
Net loans and leases		51,058,664		48,212,559		6
Goodwill		3,524,625		3,192,128		10
Core deposit and other intangible assets		182,418		183,496		–1
Other assets		4,567,422		4,022,111		14
Total assets	$	68,880,399		65,815,757		5	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices	$	13,794,636		8,856,114		56	%
Other deposits at U.S. offices		32,604,764		29,677,163		10
Deposits at foreign office		1,050,438		4,047,986		–74
Total deposits		47,449,838		42,581,263		11
Short-term borrowings		2,442,582		3,009,735		–19
Accrued interest and other liabilities		995,056		1,364,879		–27
Long-term borrowings		10,240,016		12,075,149		–15
Total liabilities		61,127,492		59,031,026		4
Stockholders’ equity:
Preferred		730,235		567,463		29
Common (1)		7,022,672		6,217,268		13
Total stockholders’ equity		7,752,907		6,784,731		14
Total liabilities and stockholders’ equity	$	68,880,399		65,815,757		5	%

(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $336.0 million at December 31, 2009 and $736.9 million at December 31, 2008.

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17-17-17-17-17

M&T BANK CORPORATION
Condensed Consolidated Balance Sheet, Five Quarter Trend

	December 31,		September 30,		June 30,		March 31,		December 31,
Dollars in thousands	2009		2009		2009		2009		2008
ASSETS
Cash and due from banks	$	1,226,223		1,356,508		1,148,428		1,117,845		1,546,804
Interest-bearing deposits at banks		133,335		54,443		59,950		27,374		10,284
Federal funds sold and agreements to resell securities		20,119		17,206		2,300		125,800		111,347
Trading account assets		386,984		497,064		495,324		591,802		617,821
Investment securities		7,780,609		7,634,262		8,155,434		7,686,845		7,919,207
Loans and leases:
Commercial, financial, etc.		13,479,447		13,517,538		14,180,609		13,986,663		14,261,882
Real estate — commercial		20,949,931		21,007,376		20,787,198		18,833,865		18,837,665
Real estate — consumer		5,463,463		5,427,260		5,471,775		5,171,953		4,904,424
Consumer		12,043,845		12,251,598		12,275,062		10,925,659		10,996,492
Total loans and leases, net of unearned discount		51,936,686		52,203,772		52,714,644		48,918,140		49,000,463
Less: allowance for credit losses		878,022		867,874		855,365		845,971		787,904
Net loans and leases		51,058,664		51,335,898		51,859,279		48,072,169		48,212,559
Goodwill		3,524,625		3,524,625		3,524,625		3,192,128		3,192,128
Core deposit and other intangible assets		182,418		199,148		216,072		168,126		183,496
Other assets		4,567,422		4,378,296		4,451,805		3,901,106		4,022,111
Total assets	$	68,880,399		68,997,450		69,913,217		64,883,195		65,815,757
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices	$	13,794,636		12,730,083		12,403,999		9,544,932		8,856,114
Other deposits at U.S. offices		32,604,764		32,813,698		33,265,704		30,763,204		29,677,163
Deposits at foreign office		1,050,438		1,318,070		1,085,004		2,169,220		4,047,986
Total deposits		47,449,838		46,861,851		46,754,707		42,477,356		42,581,263
Short-term borrowings		2,442,582		2,927,268		2,951,149		2,641,811		3,009,735
Accrued interest and other liabilities		995,056		1,241,576		1,238,959		1,326,545		1,364,879
Long-term borrowings		10,240,016		10,354,392		11,568,238		11,535,644		12,075,149
Total liabilities		61,127,492		61,385,087		62,513,053		57,981,356		59,031,026
Stockholders’ equity:
Preferred		730,235		727,748		725,472		568,284		567,463
Common (1)		7,022,672		6,884,615		6,674,692		6,333,555		6,217,268
Total stockholders’ equity		7,752,907		7,612,363		7,400,164		6,901,839		6,784,731
Total liabilities and stockholders’ equity	$	68,880,399		68,997,450		69,913,217		64,883,195		65,815,757

(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $336.0 million at December 31, 2009, $419.3 million at September 30, 2009, $580.8 million at June 30, 2009, $622.4 million at March 31, 2009, and $736.9 million at December 31, 2008.

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18-18-18-18-18

M&T BANK CORPORATION
Condensed Consolidated Average Balance Sheet
and Annualized Taxable-equivalent Rates

	Three months ended															Change in balance						Year ended
	December 31,					December 31,					September 30,					December 31, 2009 from						December 31
	2009					2008					2009					December 31,			September 30,			2009					2008					Change in
Dollars in millions	Balance		Rate			Balance		Rate			Balance		Rate			2008			2009			Balance		Rate			Balance		Rate			balance
ASSETS
Interest-bearing deposits at banks	$	74		.08	%		13		.55	%		66		.04	%		470	%		12	%	$	50		.07	%		10		1.07	%		397	%
Federal funds sold and agreements to resell securities		23		.19			103		.41			11		.58			–77			103			52		.25			109		1.91			–52
Trading account assets		70		.66			99		3.16			83		.82			–29			–15			87		.74			79		1.95			9
Investment securities		8,197		4.63			8,894		4.90			8,420		4.81			–8			–3			8,403		4.79			8,973		5.05			–6
Loans and leases, net of unearned discount
Commercial, financial, etc.		13,527		3.87			14,213		4.74			13,801		3.78			–5			–2			13,855		3.79			13,802		5.24			—
Real estate — commercial		20,950		4.48			18,666		5.55			20,843		4.48			12			1			20,085		4.45			18,428		5.82			9
Real estate — consumer		5,457		5.37			4,904		5.85			5,429		5.43			11			1			5,297		5.45			5,465		6.03			–3
Consumer		12,153		5.32			11,027		6.08			12,247		5.37			10			–1			11,722		5.43			11,150		6.43			5
Total loans and leases, net		52,087		4.59			48,810		5.45			52,320		4.58			7			—			50,959		4.60			48,845		5.82			4
Total earning assets		60,451		4.58			57,919		5.35			60,900		4.60			4			–1			59,551		4.61			58,016		5.69			3
Goodwill		3,525					3,192					3,525					10			—			3,393					3,193					6
Core deposit and other intangible assets		191					191					208					—			–8			191					214					–11
Other assets		4,752					3,640					4,521					31			5			4,337					3,709					17
Total assets	$	68,919					64,942					69,154					6	%		—	%	$	67,472					65,132					4	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts	$	579		.18			528		.45			541		.21			10	%		7	%	$	543		.21			502		.58			8	%
Savings deposits		24,237		.36			19,540		1.27			23,367		.37			24			4			22,832		.49			18,170		1.37			26
Time deposits		8,304		1.89			9,388		3.06			9,246		2.17			–12			–10			8,782		2.35			9,583		3.45			–8
Deposits at foreign office		1,300		.11			2,985		.71			1,444		.13			–56			–10			1,665		.14			3,986		2.12			–58
Total interest-bearing deposits		34,420		.72			32,441		1.72			34,598		.84			6			–1			33,822		.95			32,241		2.07			5
Short-term borrowings		2,308		.17			4,950		.82			2,663		.26			–53			–13			2,911		.24			6,086		2.34			–52
Long-term borrowings		10,253		2.73			12,058		4.55			11,008		2.80			–15			–7			11,092		3.07			11,605		4.56			–4
Total interest-bearing liabilities		46,981		1.13			49,449		2.32			48,269		1.26			–5			–3			47,825		1.40			49,932		2.68			–4
Noninterest-bearing deposits		12,945					8,006					12,122					62			7			11,054					7,674					44
Other liabilities		1,307					1,133					1,242					15			5			1,311					1,089					20
Total liabilities		61,233					58,588					61,633					5			–1			60,190					58,695					3
Stockholders’ equity		7,686					6,354					7,521					21			2			7,282					6,437					13
Total liabilities and stockholders’ equity	$	68,919					64,942					69,154					6	%		—	%	$	67,472					65,132					4	%
Net interest spread				3.45					3.03					3.34											3.21					3.01
Contribution of interest-free funds				.26					.34					.27											.28					.37
Net interest margin				3.71	%				3.37	%				3.61	%										3.49	%				3.38	%

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19-19-19-19-19

M&T BANK CORPORATION
Reconciliation of Quarterly GAAP to Non-GAAP Measures

	Three months ended						Year ended
	December 31						December 31
	2009			2008			2009			2008
Income statement data
In thousands, except per share
Net income
Net income	$	136,818			102,241		$	379,891			555,887
Amortization of core deposit and other intangible assets (1)		10,152			9,543			39,006			40,504
Merger-related gain (1)		—			—			(17,684	)		—
Merger-related expenses (1)		3,806			—			54,163			2,160
Net operating income	$	150,776			111,784		$	455,376			598,551
Earnings per common share
Diluted earnings per common share	$	1.04			.92		$	2.89			5.01
Amortization of core deposit and other intangible assets (1)		.09			.08			.34			.36
Merger-related gain (1)		—			—			(.15	)		—
Merger-related expenses (1)		.03			—			.46			.02
Diluted net operating earnings per common share	$	1.16			1.00		$	3.54			5.39
Other expense
Other expense	$	478,451			446,819		$	1,980,563			1,726,996
Amortization of core deposit and other intangible assets		(16,730	)		(15,708	)		(64,255	)		(66,646	)
Merger-related expenses		(6,264	)		—			(89,157	)		(3,547	)
Noninterest operating expense	$	455,457			431,111		$	1,827,151			1,656,803
Merger-related expenses
Salaries and employee benefits	$	381			—		$	10,030			62
Equipment and net occupancy		545			—			2,975			49
Printing, postage and supplies		233			—			3,677			367
Other costs of operations		5,105			—			72,475			3,069
Total	$	6,264			—		$	89,157			3,547
Balance sheet data
In millions
Average assets
Average assets	$	68,919			64,942		$	67,472			65,132
Goodwill		(3,525	)		(3,192	)		(3,393	)		(3,193	)
Core deposit and other intangible assets		(191	)		(191	)		(191	)		(214	)
Deferred taxes		37			25			33			30
Average tangible assets	$	65,240			61,584		$	63,921			61,755
Average common equity
Average total equity	$	7,686			6,354		$	7,282			6,437
Preferred stock		(729	)		(55	)		(666	)		(14	)
Average common equity		6,957			6,299			6,616			6,423
Goodwill		(3,525	)		(3,192	)		(3,393	)		(3,193	)
Core deposit and other intangible assets		(191	)		(191	)		(191	)		(214	)
Deferred taxes		37			25			33			30
Average tangible common equity	$	3,278			2,941		$	3,065			3,046
At end of quarter
Total assets
Total assets	$	68,880			65,816		$	68,880			65,816
Goodwill		(3,525	)		(3,192	)		(3,525	)		(3,192	)
Core deposit and other intangible assets		(182	)		(183	)		(182	)		(183	)
Deferred taxes		35			23			35			23
Total tangible assets	$	65,208			62,464		$	65,208			62,464
Total common equity
Total equity	$	7,753			6,785		$	7,753			6,785
Preferred stock		(730	)		(568	)		(730	)		(568	)
Unamortized discount and undeclared dividends — preferred stock		(6	)		—			(6	)		—
Total common equity		7,017			6,217			7,017			6,217
Goodwill		(3,525	)		(3,192	)		(3,525	)		(3,192	)
Core deposit and other intangible assets		(182	)		(183	)		(182	)		(183	)
Deferred taxes		35			23			35			23
Total tangible common equity	$	3,345			2,865		$	3,345			2,865

(1) After any related tax effect.

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20-20-20-20-20

M&T BANK CORPORATION
Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend

	Three months ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2009			2009			2009			2009			2008
Income statement data
In thousands, except per share
Net income
Net income	$	136,818			127,664			51,188			64,221			102,241
Amortization of core deposit and other intangible assets (1)		10,152			10,270			9,247			9,337			9,543
Merger-related gain (1)		—			(17,684	)		—			—			—
Merger-related expenses (1)		3,806			8,511			40,370			1,476			—
Net operating income	$	150,776			128,761			100,805			75,034			111,784
Earnings per common share
Diluted earnings per common share	$	1.04			.97			.36			.49			.92
Amortization of core deposit and other intangible assets (1)		.09			.09			.08			.09			.08
Merger-related gain (1)		—			(.15	)		—			—			—
Merger-related expenses (1)		.03			.07			.35			.01			—
Diluted net operating earnings per common share	$	1.16			.98			.79			.59			1.00
Other expense
Other expense	$	478,451			500,056			563,710			438,346			446,819
Amortization of core deposit and other intangible assets		(16,730	)		(16,924	)		(15,231	)		(15,370	)		(15,708	)
Merger-related expenses		(6,264	)		(14,010	)		(66,457	)		(2,426	)		—
Noninterest operating expense	$	455,457			469,122			482,022			420,550			431,111
Merger-related expenses
Salaries and employee benefits	$	381			870			8,768			11			—
Equipment and net occupancy		545			1,845			581			4			—
Printing, postage and supplies		233			629			2,514			301			—
Other costs of operations		5,105			10,666			54,594			2,110			—
Total	$	6,264			14,010			66,457			2,426			—
Balance sheet data
In millions
Average assets
Average assets	$	68,919			69,154			66,984			64,766			64,942
Goodwill		(3,525	)		(3,525	)		(3,326	)		(3,192	)		(3,192	)
Core deposit and other intangible assets		(191	)		(208	)		(188	)		(176	)		(191	)
Deferred taxes		37			41			30			22			25
Average tangible assets	$	65,240			65,462			63,500			61,420			61,584
Average common equity
Average total equity	$	7,686			7,521			7,127			6,780			6,354
Preferred stock		(729	)		(727	)		(636	)		(568	)		(55	)
Average common equity		6,957			6,794			6,491			6,212			6,299
Goodwill		(3,525	)		(3,525	)		(3,326	)		(3,192	)		(3,192	)
Core deposit and other intangible assets		(191	)		(208	)		(188	)		(176	)		(191	)
Deferred taxes		37			41			30			22			25
Average tangible common equity	$	3,278			3,102			3,007			2,866			2,941
At end of quarter
Total assets
Total assets	$	68,880			68,997			69,913			64,883			65,816
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,192	)		(3,192	)
Core deposit and other intangible assets		(182	)		(199	)		(216	)		(168	)		(183	)
Deferred taxes		35			39			43			21			23
Total tangible assets	$	65,208			65,312			66,215			61,544			62,464
Total common equity
Total equity	$	7,753			7,612			7,400			6,902			6,785
Preferred stock		(730	)		(728	)		(725	)		(568	)		(568	)
Unamortized discount and undeclared dividends — preferred stock		(6	)		(5	)		(6	)		(5	)		—
Total common equity		7,017			6,879			6,669			6,329			6,217
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,192	)		(3,192	)
Core deposit and other intangible assets		(182	)		(199	)		(216	)		(168	)		(183	)
Deferred taxes		35			39			43			21			23
Total tangible common equity	$	3,345			3,194			2,971			2,990			2,865

(1) After any related tax effect.

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