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FIRST EMPIRE RELEASES SECOND QUARTER EARNINGS

 BUFFALO, N.Y., July 8 /PRNewswire/ -- First Empire State Corporation ("First Empire") (AMEX: FES) today announced earnings of $25.2 million, or $3.42 per common share, for the three months ended June 30, 1993. Net income for the second quarter of 1992, excluding after-tax gains realized from the sale of bank investment securities totaling $7.6 million or $1.08 per common share, was $20.2 million or $2.74 per common share. There were no significant gains from investment securities transactions in this year's second quarter. Excluding the effects of securities transactions, net income in the second quarter of 1993 increased 25 percent or $5.0 million and $.68 per common share from the comparable 1992 period.
 Excluding the after-tax effect of securities transactions, net income for the first half of 1993 was $49.1 million or $6.67 per common share, 25 percent higher than the $39.2 million or $5.33 per common share earned during the first six months of 1992. The after-tax effect of securities transactions was $445 thousand or $.06 per common share and $16.1 million or $2.30 per common share for the first six months of 1993 and 1992, respectively.
 Compared to a year earlier, average earning assets for the three months ended June 30, 1993 increased 17 percent to $10.1 billion, in large part, because of the July 1992 acquisitions of Central Trust Company of Rochester, New York ("Central Trust") and Endicott Trust Company of Endicott, New York ("Endicott Trust") which were merged into First Empire's principal banking subsidiary, Manufacturers and Traders Trust Company ("M&T Bank"). Principally because of this growth, taxable-equivalent net interest income increased 15 percent to $120.1 million in the second quarter of 1993 from $104.6 million in the comparable period of 1992. Net interest income expressed as an annualized percentage of average earning assets declined modestly to 4.78 percent in the recent quarter from 4.90 percent in the second quarter of 1992.
 The provision for possible credit losses was $20.2 million in 1993's second quarter, down from $24.1 million recorded in the comparable 1992 quarter. Net charge-offs totaled $9.3 million in the recent quarter compared with $6.9 million in 1992's second quarter. The allowance for possible credit losses rose to $172.7 million or 2.46 percent of total loans at June 30, 1993 from $127.7 million or 2.09 percent at June 30, 1992. Nonperforming loans decreased to $91.9 million or 1.31 percent of loans outstanding at June 30, 1993, from $97.7 million or 1.60 percent a year earlier. The ratio of the allowance for possible credit losses to nonperforming loans at the recent quarter-end was 188 percent, compared to 131 percent at June 30, 1992 and 147 percent at March 31, 1993.
 Exclusive of bank investment securities transactions, other income increased 30 percent to $31.0 million for the recent quarter from $23.9 million a year earlier. Similarly, other expense increased 25 percent to $87.8 million in 1993's second quarter from $70.2 million in the comparable 1992 period. The mid-1992 acquisitions of Central Trust and Endicott Trust contributed significantly to the year-to-year increases. Increased income from the origination, sale and servicing of residential mortgage loans also contributed to the rise in other income, while processing costs associated with this income and increased advertising and promotional expense also added to other expenses.
 The annualized rates of return on average total assets and average common stockholders' equity in the recent quarter were .96 percent and 15.74 percent, respectively. Exclusive of securities transactions, the annualized returns on assets and common stockholders' equity in 1992's second quarter were .91 percent and 14.55 percent, respectively.
 First Empire had total assets of $10.5 billion at June 30, 1993, up from $8.75 billion a year earlier. Primarily as a result of the 1992 acquisitions, both total loans and total deposits were higher at the recent quarter's end than at June 30, 1992. Loans and leases, net of unearned discount, rose to $7.0 billion from $6.1 billion at June 30, 1992. Deposits increased 6 percent from June 30, 1992 to $7.6 billion at the recent quarter-end. Total stockholders' equity increased to $670.2 million at June 30, 1993 from $584.9 million a year earlier. Common stockholders' equity per share was $91.67 at June 30, 1993, an increase of 13 percent from $80.94 at June 30, 1992.
 First Empire is a bank holding company whose subsidiaries include M&T Bank (Buffalo, New York) and The East New York Savings Bank (New York City, New York).
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Statement of Income
 Three months ended
 Dollars in thousands, June 30
 except per share 1993 1992 Pct Change
 Net interest income $119,065 $102,941 16
 Less: Provision for
 possible credit losses 20,215 24,127 (16)
 Gains (losses) on sales of bank
 investment securities (21) 13,620 (100)
 Other income 30,988 23,890 30
 Less:
 Salaries & employee benefits 38,681 30,570 27
 Other expenses 49,077 39,610 24
 Income before income taxes 42,059 46,144 (9)
 Applicable income taxes 16,874 18,382 (8)
 Net income $ 25,185 $ 27,762 (9)
 Dividends on preferred stock $900 $900 --
 Per common share:
 Net income
 Primary $3.42 $3.82 (10)
 Fully diluted 3.31 3.68 (10)
 Net income excluding
 securities transactions
 Primary 3.42 2.74 25
 Fully diluted 3.31 2.67 24
 Cash dividends $0.50 $0.40 25
 Common shares outstanding
 in thousands:
 Average(A) 7,102 7,033 1
 Period end 6,875 6,733 2
 Performance Ratios, annualized
 Net income to:
 Average total assets 0.96 pct 1.25 pct
 Average common
 stockholders' equity 15.74 pct 20.29 pct
 Yield on average earning
 assets(B) 7.53 pct 8.68 pct
 Cost of interest-bearing
 liabilities 3.18 pct 4.31 pct
 Net interest spread(B) 4.35 pct 4.37 pct
 Contribution of interest-free
 funds 0.43 pct 0.53 pct
 Net interest margin(B) 4.78 pct 4.90 pct
 Six months ended
 Dollars in thousands, June 30
 except per share 1993 1992 Pct Change
 Net interest income $234,470 $204,684 15
 Less: Provision for
 possible credit losses 38,530 41,845 (8)
 Gains (losses) on sales of bank
 investment securities 802 27,990 (97)
 Other income 58,816 47,171 25
 Less:
 Salaries & employee benefits 79,763 61,714 29
 Other expenses 92,963 83,489 11
 Income before income taxes 82,832 92,797 (11)
 Applicable income taxes 33,325 37,497 (11)
 Net income $ 49,507 $ 55,300 (10)
 Dividends on preferred stock $1,800 $1,800 --
 Per common share:
 Net income
 Primary $6.73 $7.63 (12)
 Fully diluted 6.52 7.34 (11)
 Net income excluding
 securities transactions
 Primary 6.67 5.33 25
 Fully diluted 6.46 5.20 24
 Cash dividends $0.90 $0.80 13
 Common shares outstanding
 in thousands:
 Average(A) 7,086 7,016 1
 Period end 6,875 6,733 2
 Performance Ratios, annualized
 Net income to:
 Average total assets 0.98 pct 1.24 pct
 Average common
 stockholders' equity 15.80 pct 20.60 pct
 Yield on average earning
 assets(B) 7.69 pct 8.81 pct
 Cost of interest-bearing
 liabilities 3.26 pct 4.46 pct
 Net interest spread(B) 4.43 pct 4.35 pct
 Contribution of interest-free
 funds 0.44 pct 0.52 pct
 Net interest margin(B) 4.87 pct 4.87 pct
 (A) -- Includes common stock equivalents.
 (B) -- On a fully taxable-equivalent basis.
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Balance Sheet
 June 30
 Dollars in thousands 1993 1992 Pct Change
 ASSETS
 Cash and due from banks $ 274,456 $ 256,231 7
 Money-market assets 511,914 523,456 (2)
 Investment securities 2,526,394 1,766,639 43
 Loans and leases, net of
 unearned discount 7,020,603 6,120,771 15
 Less: Allowance for possible
 credit losses 172,727 127,695 35
 Net loans and leases 6,847,876 5,993,076 14
 Other assets 296,167 212,275 40
 Total assets $10,456,807 8,751,677 19
 LIABILITIES AND EQUITY
 Demand deposits in U.S.
 offices $ 995,999 $ 743,203 34
 Other deposits in U.S.
 offices 6,487,159 6,250,001 4
 Deposits in foreign offices 107,775 139,907 (23)
 Total deposits 7,590,933 7,133,111 6
 Short-term borrowings 1,997,319 918,081 118
 Accrued interest and other
 liabilities 122,672 113,451 8
 Long-term borrowings and capital
 leases 75,639 2,122 3465
 Total liabilities 9,786,563 8,166,765 20
 Stockholders' equity 670,244 584,912 15
 Total liabilities and
 stockholders' equity $10,456,807 $ 8,751,677 19
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Average Balance Sheet
 Three months ended
 June 30
 Dollars in thousands 1993 1992 Pct Change
 ASSETS
 Money-market assets $1,049,655 $ 437,667 140
 Investment securities 2,062,854 2,063,246 ---
 Loans and leases, net of
 unearned income 6,957,039 6,092,512 14
 Total earning assets 10,069,548 8,593,425 17
 Other assets 413,808 343,315 21
 Total assets $10,483,356 $ 8,936,740 17
 LIABILITIES AND EQUITY
 Interest-Bearing Deposits $6,685,425 $6,449,613 4
 Borrowings 2,035,445 1,095,019 86
 Total interest-bearing
 liabilities 8,720,870 7,544,632 16
 Demand deposits 964,282 669,622 44
 Other liabilities 139,196 150,006 (7)
 Total liabilities 9,824,348 8,364,260 17
 Preferred stockholders' equity 40,000 40,000 ---
 Common stockholders' equity 619,008 532,480 16
 Total stockholders' equity 659,008 572,480 15
 Total liabilities and
 stockholders' equity $10,483,356 $ 8,936,740 17
 Six months ended
 June 30
 Dollars in thousands 1993 1992 Pct Change
 ASSETS
 Money-market assets $ 982,827 $ 330,739 197
 Investment securities 1,888,838 2,207,860 (14)
 Loans and leases, net of
 unearned income 6,928,812 6,053,478 14
 Total earning assets 9,800,477 8,592,077 14
 Other assets 416,575 358,859 16
 Total assets $10,217,052 $ 8,950,936 14
 LIABILITIES AND EQUITY
 Interest-Bearing Deposits $6,798,533 $6,537,679 4
 Borrowings 1,682,298 1,057,018 59
 Total interest-bearing
 liabilities 8,480,831 7,594,697 12
 Demand deposits 953,873 646,273 48
 Other liabilities 133,622 147,602 (9)
 Total liabilities 9,568,326 8,388,572 14
 Preferred stockholders' equity 40,000 40,000 ---
 Common stockholders' equity 608,726 522,364 17
 Total stockholders' equity 648,726 562,364 15
 Total liabilities and
 stockholders' equity $10,217,052 $8,950,936 14
 -0- 7/8/93
 /CONTACT: Gary S. Paul of First Empire State Corporation, 716-842-5130/
 (FES)


CO: First Empire State Corporation ST: New York IN: FIN SU: ERN
 6SjQ%Xlny!5} NO CARRIER


BM -- CL004 -- 9443 07/08/93 11:03 EDT
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