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FIRST EMPIRE RELEASES 1993 EARNINGS

 BUFFALO, N.Y., Jan. 10 /PRNewswire/ -- First Empire State Corporation ("First Empire") (AMEX: FES) reported 1993 net income of $102.0 million, up from the $97.9 million earned in 1992. Earnings per common share rose to $13.87 for 1993 from 1992's $13.41. Excluding the effect of gains from bank investment securities transactions, 1993's net income was $101.5 million, 24% higher than the $81.9 million earned in 1992, while earnings per common share, on the same basis, were $13.81, up 24% from $11.13 in the prior year. The 1992 gains were realized primarily as a result of securities sales in the first half of the year.
 In the fourth quarter of 1993, earnings were $26.6 million or $3.62 per common share, an increase of 23% from $21.6 million or $2.93 per common share in the prior year's final quarter.
 Average earning assets were $10.0 billion in 1993, up 9% from the prior year. This growth helped taxable-equivalent net interest income increase by 8% to $474.8 million in 1993 from $438.6 million the year before. Net interest income, expressed as an annualized percentage of average earning assets was 4.76% in 1993, compared with 4.79% in 1992. The spread between the yield on earning assets and the rate paid on interest-bearing liabilities widened slightly to 4.33% in 1993 from 4.29% in 1992.
 The provision for possible credit losses totaled $80.0 million in 1993, down from the $85.0 million recorded in 1992. The allowance for possible credit losses rose to $195.9 million or 2.70% of net loans outstanding at December 31, 1993 from $151.7 million or 2.17% at year- end 1992. Net charge-offs for the year amounted to $35.8 million or .51% of average loans outstanding, compared with $46.3 million or .70% in 1992. Nonperforming loans at the recent year-end totaled $82.3 million or 1.13% of loans outstanding, down from $113.6 million or 1.63% the year earlier.
 Non-interest income, excluding securities gains, rose 12% to $109.7 million in 1993 from $98.2 million in 1992. Contributing to the increase was a full year's income from the acquisitions of Central Trust Company of Rochester, New York and Endicott Trust Company of Endicott, New York, which were merged into First Empire's principal banking subsidiary, Manufacturers and Traders Trust Company ("M&T Bank") on July 1, 1992. Other expense totaled $327.8 million in 1993, up 5% from 1992's $311.3 million. The higher expenses were caused in part by full-year operating expenses associated with the 1992 acquisitions.
 The rates of return on average total assets and average common stockholders' equity in 1993 were .98% and 15.61%, respectively. Excluding the effect of securities transactions, the return on average total assets was .98% in 1993 up from .86% in 1992, while the 1993 return on average common stockholders' equity increased to 15.53% from 14.43% in 1992.
 First Empire's year-end balance sheet reflected total assets of $10.4 billion, up from $9.6 billion at December 31, 1992. Loans and leases, net of unearned discount, were $7.3 billion, up from $7.0 billion a year earlier. Deposits declined by 9% to $7.4 billion at the recent year-end from $8.1 billion a year earlier, primarily due to the lower rate environment which contributed to decreases in time deposits. Total stockholders' equity was $724.0 million or 6.99% of total assets at year-end, compared with $626.8 million or 6.54% at December 31, 1992. Common stockholders' equity per share at the recent year end rose to $99.43, up 16% from $85.79 a year earlier.
 On December 31, 1993, First Empire adopted Statement of Financial Accounting Standards ("SFAS") No. 115, "Accounting for Certain Investments in Debt and Equity Securities". The adoption of SFAS No. 115 had no impact on reported net income, but increased stockholders' equity by $9.1 million, or $1.33 per common share. Such increase is the unrealized after tax gain on investment securities "available for sale".
 First Empire State Corporation is a bank holding company whose subsidiaries include M&T Bank (Buffalo, N.Y.) and The East New York Savings Bank (New York City).
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Statement of Income
 Dollars in thousands, Three months ended
 except per share December 31
 1993 1992 Change
 Net interest income $117,880 113,503 4 pct
 Less: Provision for
 possible credit losses 21,713 21,424 1
 Gains (losses) on sales of bank
 investment securities - (720) -
 Other income 28,702 32,038 (10)
 Less:
 Salaries & employee benefits 38,203 36,651 4
 Other expenses 41,185 51,309 (20)
 Income before income taxes 45,481 35,437 28
 Applicable income taxes 18,848 13,812 36
 Net income $26,633 21,625 23 pct
 Dividends on preferred stock $900 900
 Per common share:
 Net income
 Primary $3.62 2.93 24 pct
 Fully diluted 3.50 2.86 22
 Net income excluding securities
 transactions
 Primary 3.62 3.00 21
 Fully diluted 3.50 2.92 20
 Cash dividends $0.50 0.40 25 pct
 Common shares outstanding
 in thousands:
 Average (A) 7,097 7,054 1 pct
 Period end 6,879 6,840 1 pct
 Performance Ratios, annualized
 Net income to:
 Average total assets 0.98 pct 0.83 pct
 Average common
 stockholders' equity 15.39 pct 14.42 pct
 Yield on average
 earning assets (B) 7.10 pct 7.61 pct
 Cost of interest-bearing
 liabilities 2.96 pct 3.46 pct
 Net interest spread (B) 4.14 pct 4.15 pct
 Contribution of
 interest-free funds 0.40 pct 0.45 pct
 Net interest margin (B) 4.54 pct 4.60 pct
 (A) -- Includes common stock equivalents
 (B) -- On a fully taxable-equivalent basis
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Statement of Income
 Dollars in thousands, Twelve months ended
 except per share December 31
 1993 1992 Change
 Net interest income $470,756 432,879 9 pct
 Less: Provision for
 possible credit losses 79,958 84,989 (6)
 Gains on sales of bank
 investment securities 870 28,050 (97)
 Other income 109,674 98,176 12
 Less:
 Salaries & employee benefits 154,340 130,751 18
 Other expenses 173,479 180,587 (4)
 Income before income taxes 173,523 162,778 7
 Applicable income taxes 71,531 64,841 10
 Net income $101,992 97,937 4 pct
 Dividends on preferred stock $3,600 3,600
 Per common share:
 Net income
 Primary $13.87 13.41 3 pct
 Fully diluted 13.42 12.98 3
 Net income excluding securities
 transactions
 Primary 13.81 11.13 24
 Fully diluted 13.36 10.86 23
 Cash dividends $1.90 1.60 19 pct
 Common shares outstanding
 in thousands:
 Average (A) 7,091 7,033 1 pct
 Period end 6,879 6,840 1 pct
 Performance Ratios, annualized
 Net income to:
 Average total assets 0.98 pct 1.03 pct
 Average common
 stockholders' equity 15.61 pct 17.39 pct
 Yield on average
 earning assets (B) 7.46 pct 8.32 pct
 Cost of interest-bearing
 liabilities 3.13 pct 4.03 pct
 Net interest spread (B) 4.33 pct 4.29 pct
 Contribution of
 interest-free funds 0.43 pct 0.50 pct
 Net interest margin (B) 4.76 pct 4.79 pct
 (A) -- Includes common stock equivalents
 (B) -- On a fully taxable-equivalent basis
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Balance Sheet
 Dollars in thousands December 31
 1993 1992 Change
 ASSETS
 Cash and due from banks $ 195,792 264,506 (26) pct
 Money-market assets 394,288 476,017 (17)
 Investment securities 2,429,152 1,720,564 41
 Loans and leases, net of
 unearned discount 7,261,099 6,983,804 4
 Less: Allowance for possible
 credit losses 195,878 151,690 29
 Net loans and leases 7,065,221 6,832,114 3
 Other assets 280,505 294,730 (5)
 Total assets $10,364,958 9,587,931 8 pct
 LIABILITIES AND EQUITY
 Demand deposits in
 U.S. offices $ 1,052,258 1,078,690 (2) pct
 Other deposits in U.S. offices 6,111,945 6,880,644 (11)
 Deposits in foreign offices 189,058 117,776 61
 Total deposits 7,353,261 8,077,110 (9)
 Short-term borrowings 2,101,667 692,691 203
 Accrued interest and
 other liabilities 110,446 115,650 (4)
 Long-term borrowings and
 capital leases 75,590 75,685 -
 Total liabilities 9,640,964 8,961,136 8
 Stockholders' equity 723,994 626,795 16
 Total liabilities and
 stockholders' equity $10,364,958 9,587,931 8 pct
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Average Balance Sheet
 Three months ended
 Dollars in thousands December 31
 1993 1992 Change
 ASSETS
 Money-market assets $ 769,885 1,056,137 (27) pct
 Investment securities 2,521,596 1,788,655 41
 Loans and leases, net of
 unearned discount 7,079,785 7,065,237 -
 Total earning assets 10,371,266 9,910,029 5
 Other assets 404,015 436,454 (7)
 Total assets $10,775,281 10,346,483 4 pct
 LIABILITIES AND EQUITY
 Interest-bearing deposits $ 6,342,264 7,169,004 (12) pct
 Borrowings 2,593,101 1,460,385 78
 Total interest-bearing
 liabilities 8,935,365 8,629,389 4
 Demand deposits 1,010,158 959,242 5
 Other liabilities 126,348 145,923 (13)
 Total liabilities 10,071,871 9,734,554 3
 Stockholders' equity:
 Preferred 40,000 40,000 -
 Common 663,410 571,929 16
 Total stockholders' equity 703,410 611,929 15
 Total liabilities and
 stockholders' equity $10,775,281 10,346,483 4 pct
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Average Balance Sheet
 Twelve months ended
 Dollars in thousands December 31
 1993 1992 Change
 ASSETS
 Money-market assets $ 825,744 593,521 39 pct
 Investment securities 2,173,163 1,993,272 9
 Loans and leases, net of
 unearned discount 6,982,289 6,571,259 6
 Total earning assets 9,981,196 9,158,052 9
 Other assets 408,834 395,823 3
 Total assets $10,390,030 9,553,875 9 pct
 LIABILITIES AND EQUITY
 Interest-bearing deposits $ 6,615,783 6,906,804 (4) pct
 Borrowings 1,998,165 1,128,497 77
 Total interest-bearing
 liabilities 8,613,948 8,035,301 7
 Demand deposits 975,690 788,524 24
 Other liabilities 129,943 147,481 (12)
 Total liabilities 9,719,581 8,971,306 8
 Stockholders' equity:
 Preferred 40,000 40,000 -
 Common 630,449 542,569 16
 Total stockholders' equity 670,449 582,569 15
 Total liabilities and
 stockholders' equity $10,390,030 9,553,875 9 pct
 -0- 1/10/94
 /CONTACT: Gary Paul of First Empire State Corporation, 716-842-5130/
 (FES)


CO: First Empire State Corporation ST: New York IN: FIN SU: ERN

BM -- CL011 -- 0611 01/10/94 13:07 EST
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Date:Jan 10, 1994
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