M&T Bank (MTB) 8-K M&T Bank Corporation Announces Second Quarter Results

EXHIBIT 99

INVESTOR CONTACT:	Donald J. MacLeod	FOR IMMEDIATE RELEASE:
	(716) 842-5462	July 12, 2005
MEDIA CONTACT:	C. Michael Zabel
	(716) 842-2311

M&T BANK CORPORATION ANNOUNCES SECOND QUARTER RESULTS

     BUFFALO, NEW YORK — M&T Bank Corporation (“M&T”)(NYSE: MTB) today reported its results of operations for the quarter ended June 30, 2005.

     GAAP Results of Operations. Diluted earnings per share measured in accordance with generally accepted accounting principles (“GAAP”) for the second quarter of 2005 were $1.69, up 10% from $1.53 in the corresponding period of 2004. GAAP-basis net income in the recently completed quarter totaled $197 million, 7% higher than $184 million in the second quarter of 2004. GAAP-basis net income for 2005’s second quarter expressed as an annualized rate of return on average assets and average common stockholders’ equity was 1.46% and 13.73%, respectively, compared with 1.45% and 13.12%, respectively, in the year-earlier quarter.

     For the first two quarters of 2005, GAAP-basis diluted earnings per share were $3.31, up 17% from $2.83 in the similar 2004 period. On the same basis, net income for the first half of 2005 totaled $386 million, 12% higher than $344 million a year earlier. GAAP-basis net income for the six-month period ended June 30, 2005 expressed as an annualized rate of return on average assets and average common stockholders’equity was 1.45% and 13.57%, respectively, compared with 1.37% and 12.15%, respectively, in the corresponding 2004 period.

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M&T BANK CORPORATION

     Supplemental Reporting of Non-GAAP Results of Operations. Since 1998, M&T has consistently provided 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. Amortization of core deposit and other intangible assets, after tax effect, was $9 million ($.07 per diluted share) in the recent quarter, compared with $12 million ($.10 per diluted share) in the year-earlier quarter. Similar after tax effect amortization charges for the six-month periods ended June 30, 2005 and 2004 were $18 million ($.15 per diluted share) and $25 million ($.20 per diluted share), respectively. There were no merger-related expenses in either 2005 or 2004.

     Diluted net operating earnings per share, which exclude the impact of amortization of core deposit and other intangible assets, were $1.76 in the recent quarter, a rise of 8% from $1.63 in the second quarter of 2004. Net operating income during 2005’s second quarter grew 5% to $205 million from $196 million in the corresponding 2004 period. Expressed as an annualized rate of return on average tangible assets and average tangible stockholders’ equity, net operating income was 1.62% and 29.88%, respectively, in 2005’s second quarter, compared with 1.64% and 30.12% in the second quarter of 2004.

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M&T BANK CORPORATION

     For the six-month period ended June 30, 2005, diluted net operating earnings per share were $3.46, 14% higher than $3.03 in the year-earlier period. Net operating income for the first two quarters of 2005 rose 10% to $405 million from $369 million in the similar 2004 period. For the first half of 2005, net operating income expressed as an annualized rate of return on average tangible assets and average tangible equity was 1.61% and 29.77%, respectively, compared with 1.56% and 27.95% in the first six months of 2004.

     Reconciliation of GAAP and Non-GAAP Results of Operations. A reconciliation of diluted earnings per share and net income with diluted net operating earnings per share and net operating income follows:

	Three months ended				Six months ended
	June 30				June 30
	2005		2004		2005		2004
	(in thousands, except per share)
Diluted earnings per share	$	1.69		1.53		3.31		2.83
Amortization of core deposit and other intangible assets(1)		.07		.10		.15		.20
Diluted net operating earnings per share	$	1.76		1.63		3.46		3.03
Net income	$	196,834		184,385		386,124		343,875
Amortization of core deposit and other intangible assets(1)		8,581		11,773		18,426		24,706
Net operating income	$	205,415		196,158		404,550		368,581

(1) After any related tax effect

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M&T BANK CORPORATION

     Reconciliation of Total Assets and Equity to Tangible Assets and Equity. A reconciliation of average assets and equity with average tangible assets and average tangible equity follows:

	Three months ended						Six months ended
	June 30						June 30
	2005			2004			2005			2004
	(in millions)
Average assets	$	53,935			51,251			53,622			50,583
Goodwill		(2,904	)		(2,904	)		(2,904	)		(2,904	)
Core deposit and other intangible assets		(142	)		(210	)		(150	)		(220	)
Deferred taxes		42			—			24			—
Average tangible assets	$	50,931			48,137			50,592			47,459
Average equity	$	5,749			5,654			5,736			5,693
Goodwill		(2,904	)		(2,904	)		(2,904	)		(2,904	)
Core deposit and other intangible assets		(142	)		(210	)		(150	)		(220	)
Deferred taxes		55			79			58			83
Average tangible equity	$	2,758			2,619			2,740			2,652

     Taxable-equivalent Net Interest Income. Taxable-equivalent net interest income increased 3% to $452 million in the second quarter of 2005 from $438 million in the corresponding 2004 quarter. Average loans outstanding totaled $39.2 billion in the recent quarter, 6% higher than $36.9 billion in the second quarter of 2004. Such growth was attributable to 11% increases in average outstanding balances of commercial and commercial real estate loans. Average consumer loans declined 4% from the year-earlier period, as higher outstanding balances of home equity lines of credit were more than offset by lower automobile loans and leases and planned runoff of other second-mortgage loans. Partially offsetting the favorable impact of higher outstanding loan balances was a narrowing of M&T’s net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets. Net interest margin

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M&T BANK CORPORATION

declined to 3.78% in the recent quarter from 3.92% in the second quarter of 2004. Such decline reflects the impact of rising short-term interest rates over the past twelve months, which resulted in the rates paid on interest-bearing liabilities rising more rapidly than the yields on many earning assets.

     Provision for Credit Losses/Asset Quality. As a percentage of average loans outstanding, net charge-offs in the recent quarter were at their lowest level since 2000. Expressed as an annualized percentage of average loans outstanding, net charge-offs were .14% in 2005’s second quarter, significantly improved from .23% in the year-earlier quarter. In dollar total, net charge-offs were $14 million in the recent quarter, down 35% from $21 million in the second quarter of 2004. Reflecting the reduced level of net charge-offs, as well as improvements in other credit quality indicators, the provision for credit losses in the second quarter of 2005 was $19 million, down from $30 million in the corresponding 2004 quarter. Loans classified as nonperforming totaled $184 million, or .46% of total loans at June 30, 2005, compared with $190 million or .51% a year earlier. Loans past due 90 days or more and accruing interest were $123 million at the recent quarter-end, compared with $135 million a year earlier. Included in those past due loans at June 30, 2005 and 2004 were $99 million and $112 million, respectively, of loans guaranteed by government-related entities. Assets taken in foreclosure of defaulted loans were $8 million at June 30, 2005, compared with $19 million at June 30, 2004.

     Allowance for Credit Losses. The allowance for credit losses totaled $637 million, or 1.60% of total loans, at June 30, 2005, compared with $625 million, or 1.66%, a year earlier. The decline in the allowance as a percentage of loans reflects

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M&T BANK CORPORATION

improvement in various credit factors, including the previously noted decreases in the rate of net loan charge-offs and the level of nonperforming loans. At December 31, 2004, the allowance for credit losses totaled $627 million, or 1.63% of total loans. The ratio of M&T’s allowance for credit losses to nonperforming loans was 346%, 328% and 364% at June 30, 2005, June 30, 2004 and December 31, 2004, respectively.

     Noninterest Income and Expense. Noninterest income in the recent quarter totaled $245 million, up 6% from $232 million in the second quarter of 2004. Contributing to the improvement were higher deposit account service charges, trading account and foreign exchange gains, letter of credit and other credit-related fees, and gains on sales of commercial lease equipment and other property.

     Noninterest expense in the second quarter of 2005 totaled $380 million, 7% above $357 million in 2004’s second quarter. Included in such amounts are expenses considered to be nonoperating in nature consisting of amortization of core deposit and other intangible assets of $14 million in 2005 and $19 million in 2004. Exclusive of these nonoperating expenses, noninterest operating expenses were $366 million in the recently completed quarter, up from $338 million in the second quarter of 2004. The most significant contributor to that rise in operating expenses was a $27 million increase in the provision for impairment of capitalized mortgage servicing rights. Reflecting a decrease in the value of such servicing rights that resulted from lower residential mortgage loan interest rates at the end of the recent quarter as compared with three months earlier, a $5 million impairment provision was recorded during the second quarter of 2005. In contrast, a partial reversal of the

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M&T BANK CORPORATION

valuation allowance for capitalized mortgage servicing rights was recorded in last year’s second quarter that lowered operating expenses by $22 million.

     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 sales of bank investment securities), measures the relationship of operating expenses to revenues. M&T’s efficiency ratio was 52.6% in the second quarter of 2005, compared with 50.4% in the year-earlier period.

     Reflecting on M&T’s second quarter results, Rene F. Jones, Senior Vice President and Chief Financial Officer, stated, “M&T’s financial performance during the recent quarter was strong and day-to-day operating results remained consistent with our previous expectations for 2005. Favorable trends have continued regarding the quality of our loan portfolios, including historically low levels of net charge-offs and nonperforming loans as a percentage of loans outstanding. In addition, our focus on controlling operating expenses is paying off, as reflected in our results. In fact, excluding the mortgage servicing rights adjustments, operating expenses in the first half of 2005 were lower than in 2004.”

     Balance Sheet. M&T had total assets of $54.5 billion at June 30, 2005, up from $52.1 billion at June 30, 2004. Loans and leases, net of unearned discount, rose 6% to $39.9 billion at the recent quarter-end, compared with $37.5 billion a year earlier. Deposits totaled $37.3 billion at June 30, 2005, up 7% from $35.0 billion at June 30, 2004. Total stockholders’ equity was $5.8 billion at June 30, 2005, representing 10.71% of total assets, compared with $5.7 billion or 10.86% a year earlier. Common stockholders’ equity per share was $51.20 and $48.21 at June 30,

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M&T BANK CORPORATION

2005 and 2004, respectively. Tangible equity per common share was $25.00 at June 30, 2005, compared with $22.40 at June 30, 2004. 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 $3.0 billion at each of June 30, 2005 and 2004.

     In December 2004, M&T announced that it had been authorized by its Board of Directors to purchase up to 5,000,000 shares of its common stock. During the recent quarter, 624,000 shares of common stock were repurchased by M&T pursuant to such plan at an average cost per share of $102.21. Through June 30, 2005, M&T had repurchased 2,643,300 shares of its common stock pursuant to such plan at an average cost of $101.73 per share.

     Conference Call. Investors will have an opportunity to listen to M&T’s conference call to discuss second quarter financial results today at 9:00 a.m. Eastern Daylight Saving 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. 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 Wednesday, July 13, 2005 by calling 877-519-4471, code 6201040 and 973-341-3080 for international participants. The event will also be archived and available by 3:00 p.m. today on M&T’s website athttp://ir.mandtbank.com/conference.cfm.

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M&T BANK CORPORATION

     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 and credit losses; 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; regulatory supervision and oversight, including required capital levels; 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; 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

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M&T BANK CORPORATION

financial results of merger and acquisition 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 we 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									Six months ended
Amounts in thousands,	June 30									June 30
except per share	2005			2004			Change			2005			2004			Change
Performance
Net income	$	196,834			184,385			7	%	$	386,124			343,875			12	%
Per common share:
Basic earnings	$	1.73			1.56			11	%	$	3.38			2.89			17	%
Diluted earnings		1.69			1.53			10			3.31			2.83			17
Cash dividends	$	.45			.40			13		$	.85			.80			6
Common shares outstanding:
Average — diluted (1)		116,422			120,655			-4	%		116,801			121,486			-4	%
Period end (2)		114,011			117,324			-3			114,011			117,324			-3
Return on (annualized):
Average total assets		1.46	%		1.45	%					1.45	%		1.37	%
Average common stockholders’ equity		13.73	%		13.12	%					13.57	%		12.15	%
Taxable-equivalent net interest income	$	451,765			438,285			3	%	$	897,940			861,818			4	%
Yield on average earning assets		5.70	%		5.06	%					5.61	%		5.08	%
Cost of interest-bearing liabilities		2.34	%		1.39	%					2.20	%		1.41	%
Net interest spread		3.36	%		3.67	%					3.41	%		3.67	%
Contribution of interest-free funds		.42	%		.25	%					.40	%		.25	%
Net interest margin		3.78	%		3.92	%					3.81	%		3.92	%
Net charge-offs to average total net loans (annualized)		.14	%		.23	%					.17	%		.22	%
Net operating results (3)
Net operating income	$	205,415			196,158			5	%	$	404,550			368,581			10	%
Diluted net operating earnings per common share		1.76			1.63			8			3.46			3.03			14
Return on (annualized):
Average tangible assets		1.62	%		1.64	%					1.61	%		1.56	%
Average tangible common equity		29.88	%		30.12	%					29.77	%		27.95	%
Efficiency ratio		52.56	%		50.39	%					52.10	%		53.55	%

	At June 30
Loan quality	2005			2004			Change
Nonaccrual loans	$	173,403			181,974			-5	%
Renegotiated loans		10,649			8,163			30
Total nonperforming loans	$	184,052			190,137			-3	%
Accruing loans past due 90 days or more	$	123,301			134,757			-9	%
Nonperforming loans to total net loans		.46	%		.51	%
Allowance for credit losses to total net loans		1.60	%		1.66	%

(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 expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears on page 3.

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M&T BANK CORPORATION
Condensed Consolidated Statement of Income

	Three months ended							Six months ended
	June 30							June 30
Dollars in thousands	2005		2004		Change			2005		2004		Change
Interest income	$	676,518		560,601		21	%	$	1,314,839		1,106,733		19	%
Interest expense		229,016		126,805		81			425,282		253,634		68
Net interest income		447,502		433,796		3			889,557		853,099		4
Provision for credit losses		19,000		30,000		-37			43,000		50,000		-14
Net interest income after provision for credit losses		428,502		403,796		6			846,557		803,099		5
Other income
Mortgage banking revenues		31,274		30,134		4			64,700		58,392		11
Service charges on deposit accounts		92,969		91,104		2			181,322		179,429		1
Trust income		32,745		34,576		-5			66,268		68,162		-3
Brokerage services income		14,179		13,245		7			28,360		27,098		5
Trading account and foreign exchange gains		5,957		3,844		55			10,826		8,967		21
Gain on sales of bank investment securities		30		—		—			246		2,512		—
Other revenues from operations		68,208		59,431		15			127,898		115,925		10
Total other income		245,362		232,334		6			479,620		460,485		4
Other expense
Salaries and employee benefits		204,607		202,647		1			411,217		403,397		2
Equipment and net occupancy		42,608		44,811		-5			86,614		92,183		-6
Printing, postage and supplies		8,411		8,494		-1			17,242		18,386		-6
Amortization of core deposit and other intangible assets		14,055		19,250		-27			30,176		40,398		-25
Other costs of operations		110,760		82,005		35			202,529		192,810		5
Total other expense		380,441		357,207		7			747,778		747,174		—
Income before income taxes		293,423		278,923		5			578,399		516,410		12
Applicable income taxes		96,589		94,538		2			192,275		172,535		11
Net income	$	196,834		184,385		7	%	$	386,124		343,875		12	%

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M&T BANK CORPORATION
Condensed Consolidated Balance Sheet

	June 30
Dollars in thousands	2005		2004		Change
ASSETS
Cash and due from banks	$	1,473,675		1,697,173		-13	%
Money-market assets		209,081		167,817		25
Investment securities		8,319,967		8,161,040		2
Loans and leases, net of unearned discount		39,910,964		37,522,401		6
Less: allowance for credit losses		637,345		624,516		2
Net loans and leases		39,273,619		36,897,885		6
Goodwill		2,904,081		2,904,081		—
Core deposit and other intangible assets		135,331		200,433		-32
Other assets		2,166,192		2,066,029		5
Total assets	$	54,481,946		52,094,458		5	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits at U.S. offices	$	8,681,655		8,204,704		6	%
Other deposits at U.S. offices		24,442,455		23,030,317		6
Deposits at foreign office		4,181,722		3,718,490		12
Total deposits		37,305,832		34,953,511		7
Short-term borrowings		4,284,930		4,862,362		-12
Accrued interest and other liabilities		735,500		794,719		-7
Long-term borrowings		6,317,961		5,827,180		8
Total liabilities		48,644,223		46,437,772		5
Stockholders’ equity (1)		5,837,723		5,656,686		3
Total liabilities and stockholders’ equity	$	54,481,946		52,094,458		5	%

(1) Reflects accumulated other comprehensive loss, net of applicable income tax effect, of $37.8 million at June 30, 2005 and $15.7 million at June 30, 2004.

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

	Three months ended													Six months ended
	June 30													June 30
Dollars in millions	2005					2004					Change in			2005					2004					Change in
	Balance		Rate			Balance		Rate			balance			Balance		Rate			Balance		Rate			balance
ASSETS
Money-market assets	$	109		1.99	%		76		.74	%		43	%	$	98		1.72	%		81		.87	%		22	%
Investment securities		8,593		4.41			7,943		4.16			8			8,583		4.36			7,729		4.13			11
Loans and leases, net of unearned discount
Commercial, financial, etc		10,484		5.44			9,464		4.30			11			10,290		5.28			9,282		4.19			11
Real estate — commercial		14,399		6.37			12,962		5.60			11			14,296		6.23			12,742		5.65			12
Real estate — consumer		3,493		6.00			3,218		5.89			9			3,370		5.99			3,151		5.92			7
Consumer		10,853		5.99			11,260		5.46			-4			10,950		5.91			11,199		5.56			-2
Total loans and leases, net		39,229		5.99			36,904		5.26			6			38,906		5.89			36,374		5.29			7
Total earning assets		47,931		5.70			44,923		5.06			7			47,587		5.61			44,184		5.08			8
Goodwill		2,904					2,904					—			2,904					2,904					—
Core deposit and other intangible assets		142					210					-32			150					220					-32
Other assets		2,958					3,214					-8			2,981					3,275					-9
Total assets	$	53,935					51,251					5	%	$	53,622					50,583					6	%
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
NOW accounts	$	401		.54			368		.30			9	%	$	389		.45			741		.35			-48	%
Savings deposits		15,163		.88			15,667		.57			-3			15,123		.82			15,211		.59			-1
Time deposits		8,609		2.99			6,842		2.13			26			8,017		2.84			6,717		2.17			19
Deposits at foreign office		3,850		2.93			2,829		.99			36			4,025		2.68			2,831		.98			42
Total interest-bearing deposits		28,023		1.80			25,706		1.03			9			27,554		1.67			25,500		1.05			8
Short-term borrowings		4,969		2.96			5,141		1.02			-3			5,081		2.73			4,956		1.02			3
Long-term borrowings		6,263		4.25			5,869		3.30			7			6,333		4.08			5,717		3.37			11
Total interest-bearing liabilities		39,255		2.34			36,716		1.39			7			38,968		2.20			36,173		1.41			8
Noninterest-bearing deposits		8,222					7,996					3			8,212					7,780					6
Other liabilities		709					885					-20			706					937					-25
Total liabilities		48,186					45,597					6			47,886					44,890					7
Stockholders’ equity		5,749					5,654					2			5,736					5,693					1
									��
Total liabilities and stockholders’ equity	$	53,935					51,251					5	%	$	53,622					50,583					6	%
Net interest spread				3.36					3.67								3.41					3.67
Contribution of interest-free funds				.42					.25								.40					.25
Net interest margin				3.78	%				3.92	%							3.81	%				3.92	%

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