M&T Bank (MTB) 8-K M&T Bank Corporation Announces 2010 Fourth Quarter and Full-year Profits

INVESTOR CONTACT:	Donald J. MacLeod	FOR IMMEDIATE RELEASE:
	(716) 842-5138	January 14, 2011
MEDIA CONTACT:	C. Michael Zabel
	(716) 842-5385

M&T BANK CORPORATION ANNOUNCES 2010 FOURTH QUARTER
AND FULL-YEAR PROFITS

BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for 2010.

GAAP Results of Operations. Diluted earnings per common share measured in accordance with generally accepted accounting principles (“GAAP”) rose 53% to $1.59 in the fourth quarter of 2010 from $1.04 in the fourth quarter of 2009 and were 7% higher than $1.48 in the third quarter of 2010. GAAP-basis net income in the recent quarter totaled $204 million, up from $137 million and $192 million in the year-earlier quarter and the third quarter of 2010, respectively. Expressed as an annualized rate of return on average assets and average common shareholders’ equity, GAAP-basis net income for the fourth quarter of 2010 was 1.18% and 10.03%, respectively, compared with .79% and 7.09%, respectively, in the corresponding quarter of 2009 and 1.12% and 9.56%, respectively, in the third quarter of 2010.

The recent quarter’s earnings as compared with the fourth quarter of 2009 reflect higher net interest income, resulting from a widening of the net interest margin, and a significantly lower provision for credit losses. As compared with the third quarter of 2010, a 2% decline in noninterest operating expenses and a lower provision for credit losses contributed to the recent quarter’s improved performance.

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M&T BANK CORPORATION

Diluted earnings per common share for the year ended December 31, 2010 were $5.69, up 97% from $2.89 for the year ended December 31, 2009. Net income for 2010 and 2009 was $736 million and $380 million, respectively. Expressed as a rate of return on average assets and average common shareholders’ equity, net income was 1.08% and 9.30%, respectively, in 2010, compared with .56% and 5.07%, respectively, in 2009.

Reflecting on M&T’s financial results, René F. Jones, Executive Vice President and Chief Financial Officer, noted, “M&T recorded strong fourth quarter results, capping off a successful year. We were encouraged by the level of our credit costs, which remained well below recent industry experience, and by late fourth quarter growth in our commercial loan and commercial real estate loan portfolios, which were up a combined $1.2 billion from September 30. Average deposits also rose by $1.7 billion, or 4%, from the third quarter. Capital generation remained robust as evidenced by our tangible common equity ratio, which rose to 6.19% at the 2010 year-end. Also noteworthy, during the recent quarter we completed the FDIC-assisted acquisition transaction with K Bank and announced our planned merger with Wilmington Trust. We are pleased with the progress achieved to date on those transactions.”

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 amounts are considered by management to be “nonoperating” in nature. Although

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M&T BANK CORPORATION

“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 $1.52 in the recent quarter, compared with $1.16 in the corresponding 2009 period and $1.55 in the third quarter of 2010. Net operating income for the fourth quarters of 2010 and 2009 was $196 million and $151 million, respectively, compared with $200 million in the third quarter of 2010. For the three months ended December 31, 2010, net operating income expressed as an annualized rate of return on average tangible assets and average tangible common shareholders’ equity was 1.20% and 18.43%, respectively, compared with .92% and 16.73% in the similar period of 2009 and 1.24% and 19.58%, respectively, in the third quarter of 2010.

Diluted net operating earnings per common share rose 65% to $5.84 in 2010 from $3.54 in 2009. Net operating income for 2010 and 2009 aggregated $755 million and $455 million, respectively. Net operating income in 2010 expressed as a rate of return on average tangible assets and average tangible common shareholders’ equity was 1.17% and 18.95%, respectively, compared with .71% and 13.42%, respectively, in 2009.

Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income increased 3% to $580 million in the fourth quarter of 2010 from $565 million in the year-earlier quarter, and was up an annualized 3% from $576 million in the third quarter of 2010. The growth in such income in the recent

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M&T BANK CORPORATION

quarter as compared with the fourth quarter of 2009 reflects a widening of the net interest margin, which improved to 3.85% from 3.71%, partially offset by a 1% decline in average earning assets. Net interest income on a taxable-equivalent basis aggregated $2.29 billion for the full-year of 2010, 10% higher than $2.08 billion in 2009. That improvement resulted from lower market interest rates on deposits and borrowings that led to a 35 basis point widening of the net interest margin to 3.84% in the recent year from 3.49% in 2009.

Provision for Credit Losses/Asset Quality. The provision for credit losses was $85 million during the recently completed quarter, compared with $145 million in the corresponding 2009 period and $93 million in the third quarter of 2010. Net charge-offs of loans were $77 million in the fourth quarter of 2010, representing an annualized .60% of average loans outstanding, improved from $135 million or 1.03% in the year-earlier quarter and $93 million or .73% in 2010’s third quarter. The provision for credit losses declined 39% to $368 million for the year ended December 31, 2010 from $604 million in 2009. Net loan charge-offs in 2010 totaled $346 million, or .67% of average loans outstanding, compared with $514 million or 1.01% of average loans in 2009.

Loans classified as nonaccrual totaled $1.24 billion, or 2.38% of total loans at December 31, 2010, improved from $1.33 billion or 2.56% a year earlier, but up from $1.10 billion or 2.16% at September 30, 2010. The increase in nonaccrual loans from September 30, 2010 to December 31, 2010 was due to the additions to nonaccrual status of two commercial real estate relationships. The ratio of nonperforming assets to total loans plus real

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M&T BANK CORPORATION

estate and other foreclosed assets was 2.79% at December 31, 2010, compared with 2.74% and 2.53% at December 31, 2009 and September 30, 2010, respectively.

Loans past due 90 days or more and accruing interest totaled $270 million at the recent year-end, including loans guaranteed by government-related entities of $214 million. Such past due loans were $208 million and $215 million at December 31, 2009 and September 30, 2010, respectively, including $193 million and $194 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 $903 million at December 31, 2010, increased from $878 million a year earlier and $895 million at September 30, 2010. That allowance expressed as a percentage of outstanding loans was 1.74% at the recent quarter-end, compared with 1.69% at December 31, 2009 and 1.76% at September 30, 2010. 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 carry-over of an allowance for credit losses. Excluding amounts related to loans obtained in 2009 and 2010 acquisition transactions, the allowance-to-legacy loan ratio was 1.82% and 1.83% at December 31, 2010 and 2009, respectively, and 1.86% at September 30, 2010.

Noninterest Income and Expense. Noninterest income totaled $287 million in the recent quarter, compared with $266 million and $290 million in the fourth quarter of 2009 and the third quarter of 2010, respectively. Reflected in those amounts were net

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losses from investment securities of $27 million, $34 million and $8 million, each predominantly due to other-than-temporary impairment charges. Those impairment charges reduced net income and diluted earnings per common share by $17 million or $.14 in the recent quarter, $21 million or $.18 in the year-earlier quarter and $6 million or $.05 in the third quarter of 2010. Such charges reflected write-downs of certain of M&T’s holdings of privately issued collateralized mortgage obligations and collateralized debt obligations backed by pooled trust preferred securities. Excluding gains and losses from investment securities in all periods and the $28 million pre-tax merger-related gain realized on the K Bank transaction during the recent quarter, noninterest income was $286 million in the fourth quarter of 2010, compared with $300 million in the corresponding 2009 quarter and $298 million in the third quarter of 2010. The declines from the final 2009 quarter and 2010’s third quarter reflect lower residential mortgage banking revenues and service charges on deposit accounts, partially offset by higher trading account and foreign exchange gains and credit-related fees. The decline in residential mortgage banking revenues in the recent quarter reflects lower origination volumes, M&T’s decision to retain for portfolio a higher proportion of originated loans rather than selling them, and increased settlements related to M&T’s obligation to repurchase previously sold loans.

Noninterest income aggregated $1.11 billion and $1.05 billion during the years ended December 31, 2010 and 2009, respectively. Excluding gains and losses from investment securities and merger-related gains, noninterest income was $1.16 billion in each of 2010 and 2009. Declines in revenues related to residential mortgage banking, brokerage services and M&T’s trust

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M&T BANK CORPORATION

business were offset by higher service charges on deposit accounts, credit-related fees and other revenues from operations.

Noninterest expense in the fourth quarter of 2010 totaled $469 million, down from $478 million in the year-earlier quarter and $480 million in 2010’s third quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses. Exclusive of those expenses, noninterest operating expenses were $455 million in each of the fourth quarters of 2010 and 2009, down from $467 million in the third quarter of 2010. The decline from the third quarter of 2010 reflects a $6 million reduction of the allowance for impairment of capitalized residential mortgage servicing rights in the recent quarter. In comparison, a $3 million addition to that allowance was recognized during 2010’s third quarter.

For the year ended December 31, 2010, noninterest expense aggregated $1.91 billion, compared with $1.98 billion in 2009. Excluding those expenses considered to be nonoperating in nature, noninterest operating expenses were $1.86 billion in 2010 and $1.83 billion in 2009. That increase was largely attributable to higher costs for professional services and advertising in 2010, and a $22 million reduction of the allowance for impairment of capitalized residential mortgage servicing rights in 2009. For the year ended December 31, 2010, there was no change to that impairment allowance. Partially offsetting those factors were declines in expenses related to foreclosed properties and FDIC assessments.

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M&T BANK CORPORATION

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 52.5% in the fourth quarter of 2010, improved from 52.7% in the year-earlier quarter and 53.4% in the third quarter of 2010. M&T’s efficiency ratio for the years ended December 31, 2010 and 2009 was 53.7% and 56.5%, respectively.

Balance Sheet. M&T had total assets of $68.0 billion at December 31, 2010, compared with $68.9 billion a year earlier. Loans and leases, net of unearned discount, totaled $52.0 billion at the 2010 year-end, compared with $51.9 billion at December 31, 2009. Outstanding loans and leases at the end of 2010 grew $1.2 billion from $50.8 billion at September 30, 2010. That growth was largely attributable to December increases in commercial loans and commercial real estate loans. Total deposits were $49.8 billion at December 31, 2010, 5% higher than $47.4 billion at the end of 2009. Deposits at domestic offices rose $1.8 billion, or 4%, to $48.2 billion at the recent year-end from $46.4 billion at December 31, 2009.

Total shareholders’ equity was $8.4 billion and $7.8 billion at December 31, 2010 and 2009, representing 12.29% and 11.26% respectively, of total assets. Common shareholders’ equity was $7.6 billion, or $63.54 per share at December 31, 2010, up from $7.0 billion, or $59.31 per share, a year earlier. Tangible equity per common share was $33.26 and $28.27 at December 31, 2010 and 2009, respectively. 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.

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M&T’s tangible common equity to tangible assets ratio was 6.19% at December 31, 2010, compared with 5.13% and 5.96% at December 31, 2009 and September 30, 2010, respectively.

Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss fourth quarter and full-year financial results today at 10:30 a.m. Eastern Time. Those wishing to participate in the call may dial (877)780-2276. International participants, using any applicable international calling codes, may dial (973)582-2700. Callers should reference M&T Bank Corporation or the conference ID #35785107. 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 January 16, 2011 by calling (800)642-1687, or (706)645-9291 for international participants, and by making reference to ID #35785107. The event will also be archived and available by 6:00 p.m. today on M&T’s website athttp://ir.mandtbank.com/conference.cfm.

M&T is a bank holding company headquartered in Buffalo, New York. M&T’s banking subsidiaries, M&T Bank and M&T Bank, National Association, operate retail and commercial bank branches in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, New Jersey, the District of Columbia and Ontario, Canada.

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

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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 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.

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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							Year ended
Amounts in thousands,		December 31							December 31
except per share		2010		2009		Change			2010		2009		Change
Performance
Net income	$	204,442		136,818		49	%	$	736,161		379,891		94	%
Net income available to common shareholders		189,678		122,910		54			675,853		332,006		104
Per common share:
Basic earnings	$	1.59		1.05		51	%	$	5.72		2.90		97	%
Diluted earnings		1.59		1.04		53			5.69		2.89		97
Cash dividends	$	.70		.70		—		$	2.80		2.80		—
Common shares outstanding:
Average — diluted (1)		119,503		117,672		2	%		118,843		114,776		4	%
Period end (2)		119,774		118,298		1			119,774		118,298		1
Return on (annualized):
Average total assets		1.18	%	.79	%				1.08	%	.56	%
Average common shareholders’ equity		10.03	%	7.09	%				9.30	%	5.07	%
Taxable-equivalent net interest income	$	580,227		564,606		3	%	$	2,291,549		2,077,577		10	%
Yield on average earning assets		4.58	%	4.58	%				4.61	%	4.61	%
Cost of interest-bearing liabilities		.97	%	1.13	%				1.02	%	1.40	%
Net interest spread		3.61	%	3.45	%				3.59	%	3.21	%
Contribution of interest-free funds		.24	%	.26	%				.25	%	.28	%
Net interest margin		3.85	%	3.71	%				3.84	%	3.49	%
Net charge-offs to average total net loans (annualized)		.60	%	1.03	%				.67	%	1.01	%
Net operating results (3)
Net operating income	$	196,235		150,776		30	%	$	755,165		455,376		66	%
Diluted net operating earnings per common share		1.52		1.16		31			5.84		3.54		65
Return on (annualized):
Average tangible assets		1.20	%	.92	%				1.17	%	.71	%
Average tangible common equity		18.43	%	16.73	%				18.95	%	13.42	%
Efficiency ratio		52.55	%	52.69	%				53.71	%	56.50	%
		At December 31
Loan quality		2010		2009		Change
Nonaccrual loans	$	1,239,194		1,331,702		-7	%
Real estate and other foreclosed assets		220,049		94,604		133	%
Total nonperforming assets	$	1,459,243		1,426,306		2	%
Accruing loans past due 90 days or more	$	269,593		208,080		30	%
Renegotiated loans	$	233,342		212,548		10	%
Government guaranteed loans included in totals above:
Nonaccrual loans	$	56,787		38,579		47	%
Accruing loans past due 90 days or more		214,111		193,495		11	%
Purchased impaired loans (4):
Outstanding customer balance	$	219,477		172,772		27	%
Carrying amount		97,019		88,170		10	%
Nonaccrual loans to total net loans		2.38	%	2.56	%
Allowance for credit losses to:
Legacy loans		1.82	%	1.83	%
Total loans		1.74	%	1.69	%

(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,	December 31,			September 30,			June 30,			March 31,			December 31,
except per share	2010			2010			2010			2010			2009
Performance
Net income	$	204,442			192,015			188,749			150,955			136,818
Net income available to common shareholders		189,678			176,789			173,597			136,431			122,910
Per common share:
Basic earnings	$	1.59			1.49			1.47			1.16			1.05
Diluted earnings		1.59			1.48			1.46			1.15			1.04
Cash dividends	$	.70			.70			.70			.70			.70
Common shares outstanding:
Average — diluted (1)		119,503			119,155			118,878			118,256			117,672
Period end (2)		119,774			119,435			119,161			118,823			118,298
Return on (annualized):
Average total assets		1.18	%		1.12	%		1.11	%		.89	%		.79	%
Average common shareholders’ equity		10.03	%		9.56	%		9.67	%		7.86	%		7.09	%
Taxable-equivalent net interest income	$	580,227			575,733			573,332			562,257			564,606
Yield on average earning assets		4.58	%		4.65	%		4.63	%		4.59	%		4.58	%
Cost of interest-bearing liabilities		.97	%		1.03	%		1.04	%		1.04	%		1.13	%
Net interest spread		3.61	%		3.62	%		3.59	%		3.55	%		3.45	%
Contribution of interest-free funds		.24	%		.25	%		.25	%		.23	%		.26	%
Net interest margin		3.85	%		3.87	%		3.84	%		3.78	%		3.71	%
Net charge-offs to average total net loans (annualized)		.60	%		.73	%		.64	%		.74	%		1.03	%
Net operating results (3)
Net operating income	$	196,235			200,225			197,752			160,953			150,776
Diluted net operating earnings per common share		1.52			1.55			1.53			1.23			1.16
Return on (annualized):
Average tangible assets		1.20	%		1.24	%		1.23	%		1.00	%		.92	%
Average tangible common equity		18.43	%		19.58	%		20.36	%		17.34	%		16.73	%
Efficiency ratio		52.55	%		53.40	%		53.06	%		55.88	%		52.69	%

	December 31,			September 30,			June 30,			March 31,			December 31,
Loan quality	2010			2010			2010			2010			2009
Nonaccrual loans	$	1,239,194			1,099,560			1,090,135			1,339,992			1,331,702
Real estate and other foreclosed assets		220,049			192,600			192,631			95,362			94,604
Total nonperforming assets	$	1,459,243			1,292,160			1,282,766			1,435,354			1,426,306
Accruing loans past due 90 days or more	$	269,593			214,769			203,081			203,443			208,080
Renegotiated loans	$	233,342			233,671			228,847			220,885			212,548
Government guaranteed loans included in totals above:
Nonaccrual loans	$	56,787			38,232			40,271			37,048			38,579
Accruing loans past due 90 days or more		214,111			194,223			187,682			194,523			193,495
Purchased impaired loans (4):
Outstanding customer balance	$	219,477			113,964			130,808			148,686			172,772
Carrying amount		97,019			52,728			61,524			73,890			88,170
Nonaccrual loans to total net loans		2.38	%		2.16	%		2.13	%		2.60	%		2.56	%
Allowance for credit losses to:
Legacy loans		1.82	%		1.86	%		1.86	%		1.86	%		1.83	%
Total loans		1.74	%		1.76	%		1.75	%		1.73	%		1.69	%

(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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14-14-14-14-14

M&T BANK CORPORATION
Condensed Consolidated Statement of Income

	Three months ended									Year ended
	December 31									December 31
Dollars in thousands	2010			2009			Change			2010			2009			Change
Interest income	$	682,725			692,669			-1	%	$	2,729,795			2,725,197			—	%
Interest expense		108,628			133,950			-19			462,269			669,449			-31
Net interest income		574,097			558,719			3			2,267,526			2,055,748			10
Provision for credit losses		85,000			145,000			-41			368,000			604,000			-39
Net interest income after provision for credit losses		489,097			413,719			18			1,899,526			1,451,748			31
Other income
Mortgage banking revenues		35,013			50,176			-30			184,625			207,561			-11
Service charges on deposit accounts		111,129			127,185			-13			478,133			469,195			2
Trust income		31,031			29,660			5			122,613			128,568			-5
Brokerage services income		11,648			14,396			-19			49,669			57,611			-14
Trading account and foreign exchange gains		12,755			6,669			91			27,286			23,125			18
Gain on bank investment securities		861			354			—			2,770			1,165			—
Other-than-temporary impairment losses recognized in earnings		(27,567	)		(34,296	)		—			(86,281	)		(138,297	)		—
Equity in earnings of Bayview Lending Group LLC		(7,415	)		(10,635	)		-30			(25,768	)		(25,898	)		-1
Other revenues from operations		119,483			82,381			45			355,053			325,076			9
Total other income		286,938			265,890			8			1,108,100			1,048,106			6
Other expense
Salaries and employee benefits		243,413			247,080			-1			999,709			1,001,873			—
Equipment and net occupancy		50,879			53,703			-5			216,064			211,391			2
Printing, postage and supplies		8,435			9,338			-10			33,847			38,216			-11
Amortization of core deposit and other intangible assets		13,269			16,730			-21			58,103			64,255			-10
FDIC assessments		18,329			19,902			-8			79,324			96,519			-18
Other costs of operations		134,949			131,698			2			527,790			568,309			-7
Total other expense		469,274			478,451			-2			1,914,837			1,980,563			-3
Income before income taxes		306,761			201,158			52			1,092,789			519,291			110
Applicable income taxes		102,319			64,340			59			356,628			139,400			156
Net income	$	204,442			136,818			49	%	$	736,161			379,891			94	%

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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	2010			2010			2010			2010			2009
Interest income	$	682,725			685,900			684,784			676,386			692,669
Interest expense		108,628			116,032			117,557			120,052			133,950
Net interest income		574,097			569,868			567,227			556,334			558,719
Provision for credit losses		85,000			93,000			85,000			105,000			145,000
Net interest income after provision for credit losses		489,097			476,868			482,227			451,334			413,719
Other income
Mortgage banking revenues		35,013			61,052			47,084			41,476			50,176
Service charges on deposit accounts		111,129			117,733			128,976			120,295			127,185
Trust income		31,031			30,485			30,169			30,928			29,660
Brokerage services income		11,648			12,127			12,788			13,106			14,396
Trading account and foreign exchange gains		12,755			6,035			3,797			4,699			6,669
Gain on bank investment securities		861			1,440			10			459			354
Other-than-temporary impairment losses recognized in earnings		(27,567	)		(9,532	)		(22,380	)		(26,802	)		(34,296	)
Equity in earnings of Bayview Lending Group LLC		(7,415	)		(6,460	)		(6,179	)		(5,714	)		(10,635	)
Other revenues from operations		119,483			77,019			79,292			79,259			82,381
Total other income		286,938			289,899			273,557			257,706			265,890
Other expense
Salaries and employee benefits		243,413			246,389			245,861			264,046			247,080
Equipment and net occupancy		50,879			54,353			55,431			55,401			53,703
Printing, postage and supplies		8,435			7,820			8,549			9,043			9,338
Amortization of core deposit and other intangible assets		13,269			13,526			14,833			16,475			16,730
FDIC assessments		18,329			18,039			21,608			21,348			19,902
Other costs of operations		134,949			140,006			129,786			123,049			131,698
Total other expense		469,274			480,133			476,068			489,362			478,451
Income before income taxes		306,761			286,634			279,716			219,678			201,158
Applicable income taxes		102,319			94,619			90,967			68,723			64,340
Net income	$	204,442			192,015			188,749			150,955			136,818

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16-16-16-16-16

M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

		December 31
Dollars in thousands		2010	2009	Change
ASSETS
Cash and due from banks	$	908,755	1,226,223	-26	%
Interest-bearing deposits at banks		101,222	133,335	-24
Federal funds sold and agreements to resell securities		25,000	20,119	24
Trading account assets		523,834	386,984	35
Investment securities		7,150,540	7,780,609	-8
Loans and leases:
Commercial, financial, etc.		13,390,610	13,479,447	-1
Real estate — commercial		21,183,161	20,949,931	1
Real estate — consumer		5,928,056	5,463,463	9
Consumer		11,488,555	12,043,845	-5
Total loans and leases, net of unearned discount		51,990,382	51,936,686	—
Less: allowance for credit losses		902,941	878,022	3
Net loans and leases		51,087,441	51,058,664	—
Goodwill		3,524,625	3,524,625	—
Core deposit and other intangible assets		125,917	182,418	-31
Other assets		4,573,929	4,567,422	���
Total assets	$	68,021,263	68,880,399	-1	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices	$	14,557,568	13,794,636	6	%
Other deposits at U.S. offices		33,641,800	32,604,764	3
Deposits at foreign office		1,605,916	1,050,438	53
Total deposits		49,805,284	47,449,838	5
Short-term borrowings		947,432	2,442,582	-61
Accrued interest and other liabilities		1,070,701	995,056	8
Long-term borrowings		7,840,151	10,240,016	-23
Total liabilities		59,663,568	61,127,492	-2
Shareholders’ equity:
Preferred		740,657	730,235	1
Common (1)		7,617,038	7,022,672	8
Total shareholders’ equity		8,357,695	7,752,907	8
Total liabilities and shareholders’ equity	$	68,021,263	68,880,399	-1	%

(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $205.2 million at December 31, 2010 and $336.0 million at December 31, 2009.

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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		2010	2010	2010	2010	2009
ASSETS
Cash and due from banks	$	908,755	1,070,625	1,045,886	1,033,269	1,226,223
Interest-bearing deposits at banks		101,222	401,624	117,826	121,305	133,335
Federal funds sold and agreements to resell securities		25,000	443,700	10,000	10,400	20,119
Trading account assets		523,834	536,702	487,692	403,476	386,984
Investment securities		7,150,540	7,662,715	8,097,572	8,104,646	7,780,609
Loans and leases:
Commercial, financial, etc.		13,390,610	12,788,136	13,017,598	13,220,181	13,479,447
Real estate — commercial		21,183,161	20,580,450	20,612,905	20,724,118	20,949,931
Real estate — consumer		5,928,056	5,754,432	5,729,126	5,664,159	5,463,463
Consumer		11,488,555	11,668,540	11,701,657	11,835,583	12,043,845
Total loans and leases, net of unearned discount		51,990,382	50,791,558	51,061,286	51,444,041	51,936,686
Less: allowance for credit losses		902,941	894,720	894,667	891,265	878,022
Net loans and leases		51,087,441	49,896,838	50,166,619	50,552,776	51,058,664
Goodwill		3,524,625	3,524,625	3,524,625	3,524,625	3,524,625
Core deposit and other intangible assets		125,917	139,186	152,712	167,545	182,418
Other assets		4,573,929	4,570,822	4,550,684	4,521,180	4,567,422
Total assets	$	68,021,263	68,246,837	68,153,616	68,439,222	68,880,399
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices	$	14,557,568	14,665,603	13,960,723	13,622,819	13,794,636
Other deposits at U.S. offices		33,641,800	33,335,104	33,010,520	33,125,761	32,604,764
Deposits at foreign office		1,605,916	653,916	551,428	789,825	1,050,438
Total deposits		49,805,284	48,654,623	47,522,671	47,538,405	47,449,838
Short-term borrowings		947,432	1,211,683	2,158,957	1,870,763	2,442,582
Accrued interest and other liabilities		1,070,701	1,157,250	1,114,615	1,048,473	995,056
Long-term borrowings		7,840,151	8,991,508	9,255,529	10,065,894	10,240,016
Total liabilities		59,663,568	60,015,064	60,051,772	60,523,535	61,127,492
Shareholders’ equity:
Preferred		740,657	737,979	735,350	732,769	730,235
Common (1)		7,617,038	7,493,794	7,366,494	7,182,918	7,022,672
Total shareholders’ equity		8,357,695	8,231,773	8,101,844	7,915,687	7,752,907
Total liabilities and shareholders’ equity	$	68,021,263	68,246,837	68,153,616	68,439,222	68,880,399

(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $205.2 million at December 31, 2010, $192.6 million at September 30, 2010, $197.2 million at June 30, 2010, $255.2 million at March 31, 2010 and $336.0 million at December 31, 2009.

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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, 2010 from					December 31
		2010			2009			2010			December 31,		September 30,			2010			2009				Change in
Dollars in millions		Balance	Rate		Balance	Rate		Balance	Rate		2009		2010			Balance	Rate		Balance		Rate		balance
ASSETS
Interest-bearing deposits at banks	$	110	.15	%	74	.08	%	92	.15	%	50	%	19	%	$	102	.09	%	50		.07	%	103	%
Federal funds sold and agreements to resell securities		780	.19		23	.19		64	.26		—		—			221	.20		52		.25		323
Trading account assets		165	.91		70	.66		82	.65		135		101			94	.84		87		.74		8
Investment securities		7,541	4.07		8,197	4.63		7,993	4.16		-8		-6			8,018	4.24		8,403		4.79		-5
Loans and leases, net of unearned discount
Commercial, financial, etc.		13,013	4.07		13,527	3.87		12,856	3.97		-4		1			13,092	3.99		13,855		3.79		-6
Real estate — commercial		20,624	4.84		20,950	4.48		20,612	4.85		-2		—			20,714	4.70		20,085		4.45		3
Real estate — consumer		5,910	5.15		5,457	5.37		5,680	5.30		8		4			5,746	5.28		5,297		5.45		8
Consumer		11,594	5.18		12,153	5.32		11,687	5.22		-5		-1			11,745	5.22		11,722		5.43		—
Total loans and leases, net		51,141	4.74		52,087	4.59		50,835	4.74		-2		1			51,297	4.70		50,959		4.60		1
Total earning assets		59,737	4.58		60,451	4.58		59,066	4.65		-1		1			59,732	4.61		59,551		4.61		—
Goodwill		3,525			3,525			3,525			—		—			3,525			3,393				4
Core deposit and other intangible assets		132			191			146			-31		-9			153			191				-20
Other assets		5,108			4,752			5,074			8		1			4,970			4,337				15
Total assets	$	68,502			68,919			67,811			-1	%	1	%	$	68,380			67,472				1	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts	$	608	.14		579	.18		592	.15		5	%	3	%	$	601	.14		543		.21		11	%
Savings deposits		27,545	.31		24,237	.36		26,177	.33		14		5			26,190	.33		22,832		.49		15
Time deposits		6,034	1.40		8,304	1.89		6,312	1.46		-27		-4			6,583	1.52		8,782		2.35		-25
Deposits at foreign office		809	.17		1,300	.11		802	.16		-38		1			953	.14		1,665		.14		-43
Total interest-bearing deposits		34,996	.49		34,420	.72		33,883	.53		2		3			34,327	.55		33,822		.95		1
Short-term borrowings		1,439	.17		2,308	.17		1,858	.16		-38		-23			1,854	.16		2,911		.24		-36
Long-term borrowings		8,141	3.14		10,253	2.73		8,948	3.10		-21		-9			9,169	2.96		11,092		3.07		-17
Total interest-bearing liabilities		44,576	.97		46,981	1.13		44,689	1.03		-5		—			45,350	1.02		47,825		1.40		-5
Noninterest-bearing deposits		14,275			12,945			13,647			10		5			13,709			11,054				24
Other liabilities		1,329			1,307			1,294			2		3			1,218			1,311				-7
Total liabilities		60,180			61,233			59,630			-2		1			60,277			60,190	��			—
Shareholders’ equity		8,322			7,686			8,181			8		2			8,103			7,282				11
Total liabilities and shareholders’ equity	$	68,502			68,919			67,811			-1	%	1	%	$	68,380			67,472				1	%
Net interest spread			3.61			3.45			3.62								3.59				3.21
Contribution of interest-free funds			.24			.26			.25								.25				.28
Net interest margin			3.85	%		3.71	%		3.87	%							3.84	%			3.49	%

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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
		2010		2009			2010		2009
Income statement data
In thousands, except per share
Net income
Net income	$	204,442		136,818		$	736,161		379,891
Amortization of core deposit and other intangible assets (1)		8,054		10,152			35,265		39,006
Merger-related gain (1)		(16,730	)	—			(16,730	)	(17,684	)
Merger-related expenses (1)		469		3,806			469		54,163
Net operating income	$	196,235		150,776		$	755,165		455,376
Earnings per common share
Diluted earnings per common share	$	1.59		1.04		$	5.69		2.89
Amortization of core deposit and other intangible assets (1)		.07		.09			.29		.34
Merger-related gain (1)		(.14	)	—			(.14	)	(.15	)
Merger-related expenses (1)		—		.03			—		.46
Diluted net operating earnings per common share	$	1.52		1.16		$	5.84		3.54
Other expense
Other expense	$	469,274		478,451		$	1,914,837		1,980,563
Amortization of core deposit and other intangible assets		(13,269	)	(16,730	)		(58,103	)	(64,255	)
Merger-related expenses		(771	)	(6,264	)		(771	)	(89,157	)
Noninterest operating expense	$	455,234		455,457		$	1,855,963		1,827,151
Merger-related expenses
Salaries and employee benefits	$	7		381		$	7		10,030
Equipment and net occupancy		44		545			44		2,975
Printing, postage and supplies		74		233			74		3,677
Other costs of operations		646		5,105			646		72,475
Total	$	771		6,264		$	771		89,157
Balance sheet data
In millions
Average assets
Average assets	$	68,502		68,919		$	68,380		67,472
Goodwill		(3,525	)	(3,525	)		(3,525	)	(3,393	)
Core deposit and other intangible assets		(132	)	(191	)		(153	)	(191	)
Deferred taxes		24		37			29		33
Average tangible assets	$	64,869		65,240		$	64,731		63,921
Average common equity
Average total equity	$	8,322		7,686		$	8,103		7,282
Preferred stock		(740	)	(729	)		(736	)	(666	)
Average common equity		7,582		6,957			7,367		6,616
Goodwill		(3,525	)	(3,525	)		(3,525	)	(3,393	)
Core deposit and other intangible assets		(132	)	(191	)		(153	)	(191	)
Deferred taxes		24		37			29		33
Average tangible common equity	$	3,949		3,278		$	3,718		3,065
At end of quarter
Total assets
Total assets	$	68,021		68,880
Goodwill		(3,525	)	(3,525	)
Core deposit and other intangible assets		(126	)	(182	)
Deferred taxes		23		35
Total tangible assets	$	64,393		65,208
Total common equity
Total equity	$	8,358		7,753
Preferred stock		(741	)	(730	)
Undeclared dividends — preferred stock		(6	)	(6	)
Common equity, net of undeclared preferred dividends		7,611		7,017
Goodwill		(3,525	)	(3,525	)
Core deposit and other intangible assets		(126	)	(182	)
Deferred taxes		23		35
Total tangible common equity	$	3,983		3,345

(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,
		2010		2010		2010		2010		2009
Income statement data
In thousands, except per share
Net income
Net income	$	204,442		192,015		188,749		150,955		136,818
Amortization of core deposit and other intangible assets (1)		8,054		8,210		9,003		9,998		10,152
Merger-related gain (1)		(16,730	)	—		—		—		—
Merger-related expenses (1)		469		—		—		—		3,806
Net operating income	$	196,235		200,225		197,752		160,953		150,776
Earnings per common share
Diluted earnings per common share	$	1.59		1.48		1.46		1.15		1.04
Amortization of core deposit and other intangible assets (1)		.07		.07		.07		.08		.09
Merger-related gain (1)		(.14	)	—		—		—		—
Merger-related expenses (1)		—		—		—		—		.03
Diluted net operating earnings per common share	$	1.52		1.55		1.53		1.23		1.16
Other expense
Other expense	$	469,274		480,133		476,068		489,362		478,451
Amortization of core deposit and other intangible assets		(13,269	)	(13,526	)	(14,833	)	(16,475	)	(16,730	)
Merger-related expenses		(771	)	—		—		—		(6,264	)
Noninterest operating expense	$	455,234		466,607		461,235		472,887		455,457
Merger-related expenses
Salaries and employee benefits	$	7		—		—		—		381
Equipment and net occupancy		44		—		—		—		545
Printing, postage and supplies		74		—		—		—		233
Other costs of operations		646		—		—		—		5,105
Total	$	771		—		—		—		6,264
Balance sheet data
In millions
Average assets
Average assets	$	68,502		67,811		68,334		68,883		68,919
Goodwill		(3,525	)	(3,525	)	(3,525	)	(3,525	)	(3,525	)
Core deposit and other intangible assets		(132	)	(146	)	(160	)	(176	)	(191	)
Deferred taxes		24		27		30		34		37
Average tangible assets	$	64,869		64,167		64,679		65,216		65,240
Average common equity
Average total equity	$	8,322		8,181		8,036		7,868		7,686
Preferred stock		(740	)	(737	)	(734	)	(732	)	(729	)
Average common equity		7,582		7,444		7,302		7,136		6,957
Goodwill		(3,525	)	(3,525	)	(3,525	)	(3,525	)	(3,525	)
Core deposit and other intangible assets		(132	)	(146	)	(160	)	(176	)	(191	)
Deferred taxes		24		27		30		34		37
Average tangible common equity	$	3,949		3,800		3,647		3,469		3,278
At end of quarter
Total assets
Total assets	$	68,021		68,247		68,154		68,439		68,880
Goodwill		(3,525	)	(3,525	)	(3,525	)	(3,525	)	(3,525	)
Core deposit and other intangible assets		(126	)	(139	)	(152	)	(167	)	(182	)
Deferred taxes		23		26		28		31		35
Total tangible assets	$	64,393		64,609		64,505		64,778		65,208
Total common equity
Total equity	$	8,358		8,232		8,102		7,916		7,753
Preferred stock		(741	)	(738	)	(735	)	(733	)	(730	)
Undeclared dividends — preferred stock		(6	)	(6	)	(7	)	(6	)	(6	)
Common equity, net of undeclared preferred dividends		7,611		7,488		7,360		7,177		7,017
Goodwill		(3,525	)	(3,525	)	(3,525	)	(3,525	)	(3,525	)
Core deposit and other intangible assets		(126	)	(139	)	(152	)	(167	)	(182	)
Deferred taxes		23		26		28		31		35
Total tangible common equity	$	3,983		3,850		3,711		3,516		3,345

(1) After any related tax effect.

###