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Ren é Jones Chief Financial Officer - M&T Bank Corporation

Ren é Jones Chief Financial Officer - M&T Bank Corporation. Forward looking statements.

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Ren é Jones Chief Financial Officer - M&T Bank Corporation

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  1. René Jones Chief Financial Officer - M&T Bank Corporation

  2. Forward looking statements A number of statements we will be making in our presentation and in the accompanying slides will not be based on historical fact, but will be “forward-looking” statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward looking statements. Factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to, global, national and regional economic conditions, levels of market interest rates, credit or other risks of lending and investment activities, competitive and regulatory factors and technology change.Any‘forward-looking statements made by or on behalf of the Group speak only as of the date they are made. visit www.aibgroup.com/investorrelations

  3. M&T - A name known in Buffalo since 1856 • One of the 20 Largest U.S. Banks • $13.5 Billion Market Cap • $56.4 Billion in assets • +670 branches in 6 States and the District • of Columbia • Serving customers in 2 million households • and +150,000 businesses • +13,500 employees • +1,500 ATM’s

  4. Environment for US banks Best of times • Many US Bank stocks near all-time highs • “Own banks when short term interest rates peak” • Benign credit environment Worst of times • NIM pressure – subdued revenue growth • Revenue growth for top 50 US banks 2Q05 – 2Q06 – 6% • EPS growth below long term average • EPS growth for top 50 US banks 2Q05 – 2Q06 – 5% • Slowdown in housing market

  5. M&T reaction to current environment • Seeing same slower revenue growth as the industry • Significant variability among geographic regions • Closely managing expenses in response • Maintain positive operating leverage • Allocate resources toward fastest growing businesses/geographies • Maintaining standards for credit quality and returns • Excellent credit results

  6. M&T Bank Corporation - Earnings Per Share Summary ($ in millions) (1) Excludes merger-related costs and amortization expense associated with intangible assets. *Intangible Amortization net of tax: Sept. 2005 YTD =$27MM, Sept. 2006 YTD = $27MM Merger-related costs net of tax: Sept. 2006 YTD = $3MM

  7. M&T Bank Corporation – nine month highlights • Revenue growth of 4.7% year-over-year • Average loans & leases grew 4.7% • NIM declined to 3.69% from 3.79% • Operating expenses up 2.7%* • Net charge-offs of $43 million, down $11 million from 2005 * Excluding $18MM donation to the M&T Charitable Foundation.

  8. M&T Corporation vs. Top 50 Note: Efficiency ratio excludes amortization expense associated with intangible assets, merger-related expenses, and G/L on investment securities. *MTB’s efficiency ratio excludes the $25 million pretax contribution to The M&T Charitable Foundation. ** MTB’s efficiency ratio excludes the $18 million pretax contribution to The M&T Charitable Foundation and $13 million gain on an FHLB borrowing.

  9. (1) Includes Upstate NY and Western NY regions. (2) Includes NYC, Philadelphia, and Tarrytown regions. (3) Includes Baltimore, Washington DC, and Chesapeake regions. (4) Includes Pennsylvania, less Philadelphia. Note: Operating Income excludes amortization of intangibles, merger-related expenses and non-recurring items. M&T Bank Corporation – pretax operating income by region ($ in millions)

  10. M&T per share data 1983-2005 $7.03 +22% CAGR +18% CAGR Note: Data prior to 1998 does not include provisions of SFAS No. 123 andNo.148 stock option expensing.

  11. Recent performance Note: Reflects stock price performance through Sept 30. 2006 (1) BKX indicates the KBW Bank Index.

  12. What makes M&T unique?* Other Shareholders • Management’s interest aligned with Shareholders’ Interests • Over 50% Ownership between AIB, M&T insiders and Warren Buffett AIB M&T Management, Directors and Employees Berkshire Hathaway- Warren Buffett * As of 2/28/06. Includes options & deferred bonus shares

  13. M&T Bank Corporation… a solid investment Source: IDC & Factset • 24.6% Annual rate of return since 1980 • 13th best return of the entire universe of over a thousand U.S. based stocks that have traded publicly since 1980 $2,790 invested in M&T in 1980 would be worth $1 million today Note: CAGR calculated assuming reinvestment of dividends through September 30, 2006.

  14. Appendix

  15. Reconciliation of GAAP and Non-GAAP Results of Operation

  16. Reconciliation of Assets & Equity to Tangible Assets & Equity

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