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FIRST EMPIRE RELEASES THIRD QUARTER RESULTS

 BUFFALO, N.Y., Oct. 12 /PRNewswire/ -- First Empire State Corporation ("First Empire") (AMEX: FES) today announced earnings of $25.9 million, or $3.52 per common share, for the three months ended Sept. 30, 1993, up 23 percent and 24 percent, respectively, from the $21.0 million and $2.85 per common share earned in 1992's third quarter.
 Excluding the after-tax effect of securities transactions, net income for the first nine months of 1993 was $74.9 million or $10.18 per common share, 25 percent higher than the $59.8 million or $8.13 per common share earned during the first nine months of 1992. The after-tax effect of securities transactions was $478 thousand or $.07 per common share and $16.5 million or $2.35 per common share for the first nine months of 1993 and 1992, respectively. The 1992 gains were realized primarily as a result of securities sales in the first half of the year.
 Compared to a year earlier, average earning assets for the three months ended Sept. 30, 1993, increased 4 percent to $9.9 billion, largely the result of increased holdings of investment securities. Principally because of this growth, taxable-equivalent net interest income increased 3 percent to $118.8 million in the third quarter of 1993 from $115.3 million in the comparable period of 1992. Net interest income expressed as an annualized percentage of average earning assets declined to 4.74 percent in the recent quarter from 4.81 percent in the third quarter of 1992.
 The provision for possible credit losses was $19.7 million in 1993's third quarter, down from $21.7 million in the comparable 1992 quarter. Net charge-offs totaled $5.0 million in the recent quarter compared with $13.5 million in 1992's third quarter. The allowance for possible credit losses rose to $187.5 million or 2.64 percent of total loans at Sept. 30, 1993, from $148.7 million or 2.09 percent at Sept. 30, 1992. Nonperforming loans decreased to $85.6 million or 1.21 percent of loans outstanding at Sept. 30, 1993, from $105.8 million or 1.49 percent a year earlier. The ratio of the allowance for possible credit losses to nonperforming loans at the recent quarter-end was 219 percent, compared to 140 percent at Sept. 30, 1992 and 188 percent at June 30, 1993.
 Other income rose 16 percent to $30.7 million for the recent quarter from $26.5 million a year earlier. Trust income, service charges on deposit accounts and income from the origination, sale and servicing of residential mortgage loans contributed to this increase. Despite increased costs associated with growing the residential mortgage servicing business, the company's other expense decreased slightly to $83.4 million in 1993's third quarter from $84.2 million in the comparable 1992 period. The decline in expense is attributable to reduced writedowns of excess mortgage servicing fees receivable as well as completion of the computer systems upgrades and various consolidations arising out of the July 1, 1992, acquisitions of the former Central Trust and Endicott Trust.
 The annualized rates of return on average total assets and average common stockholders' equity in the recent quarter were .99 percent and 15.46 percent, respectively. The annualized returns on assets and common stockholders' equity in 1992's third quarter were .84 percent and 14.46 percent, respectively.
 First Empire had total assets of $10.9 billion at Sept. 30, 1993, up from $10.3 billion a year earlier. Loans and leases, net of unearned discount, were $7.1 billion, essentially unchanged from Sept. 30, 1992. The low interest rate environment contributed to an 8 percent decrease in deposits from Sept. 30, 1992, to $7.5 billion at the recent quarter end. Total stockholders' equity increased 15 percent to $692.5 million at Sept. 30, 1993, from $602.7 million a year earlier. Common stockholders' equity per share was $94.88 at Sept. 30, 1993, an increase of 14 percent from $83.46 at Sept. 30, 1992.
 First Empire is a bank holding company whose subsidiaries include Manufacturers and Traders Trust Company (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 September 30
 1993 1992 Change
 Net interest income $117,626 113,938 3 pct
 Less: Provision for
 possible credit losses 19,715 21,720 (9)
 Gains on sales of bank
 investment securities 68 780 (91)
 Other income 30,676 25,702 19
 Less:
 Salaries & employee benefits 42,530 37,483 13
 Other expenses 40,915 46,673 (12)
 Income before income taxes 45,210 34,544 31
 Applicable income taxes 19,358 13,532 43
 Net income $25,852 21,012 23 pct
 Dividends on preferred stock $900 900
 Per common share:
 Net income
 Primary $3.52 2.85 24 pct
 Fully diluted 3.40 2.78 22
 Net income excluding securities
 transactions
 Primary 3.51 2.80 25
 Fully diluted 3.39 2.73 24
 Cash dividends $0.50 0.40 25 pct
 Common shares outstanding
 in thousands:
 Average (A) 7,097 7,044 1 pct
 Period end 6,877 6,742 2 pct
 Performance Ratios, annualized
 Net income to:
 Average total assets 0.99 pct 0.84 pct
 Average common
 stockholders' equity 15.46 pct 14.46 pct
 Yield on average
 earning assets (B) 7.37 pct 8.16 pct
 Cost of interest-bearing
 liabilities 3.06 pct 3.83 pct
 Net interest spread (B) 4.31 pct 4.33 pct
 Contribution of
 interest-free funds 0.43 pct 0.48 pct
 Net interest margin (B) 4.74 pct 4.81 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, Nine months ended
 except per share September 30
 1993 1992 Change
 Net interest income $352,096 318,622 11 pct
 Less: Provision for
 possil?e credit losses 58,245 63,565 (8)
 Gains on sales of bank
 investment securities 870 28,770 (97)
 Other income 89,492 72,873 23
 Less:
 Salaries & employee benefits 122,293 99,197 23
 Other expenses 133,878 130,162 3
 Income before income taxes 128,042 127,341 1
 Applicable income taxes 52,683 51,029 3
 Net income $75,359 76,312 (1) pct
 Dividends on preferred stock $2,700 2,700
 Per common share:
 Net income
 Primary $10.25 10.48 (2) pct
 Fully diluted 9.92 10.11 (2)
 Net income excluding securities
 transactions
 Primary 10.18 8.13 25
 Fully diluted 9.85 7.92 24
 Cash dividends $1.40 1.20 17 pct
 Common shares outstanding
 in thousands:
 Average (A) 7,090 7,026 1 pct
 Period end 6,877 6,742 2 pct
 Performance Ratios, annualized
 Net income to:
 Average total assets 0.98 pct 1.10 pct
 Average common
 stockholders' equity 15.69 pct 18.46 pct
 Yield on average
 earning assets (B) 7.58 pct 8.58 pct
 Cost of interest-bearing
 liabilities 3.19 pct 4.24 pct
 Net interest spread (B) 4.39 pct 4.34 pct
 Contribution of
 interest-free funds 0.43 pct 0.51 pct
 Net interest margin (B) 4.82 pct 4.85 pct
 (A) -- Includes common stock equivalents
 (B) -- On a fully taxable-equivalent basis
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Balance Sheet
 Dollars in thousands September 30
 1993 1992 Change
 ASSETS
 Cash and due from banks $ 365,781 273,753 34 pct
 Money-market assets 847,556 940,953 (10)
 Investment securities 2,522,954 1,790,091 41
 Loans and leases, net of
 unearned discount 7,091,552 7,111,628 -
 Less: Allowance for possible
 credit losses 187,477 148,661 26
 Net loans and leases 6,904,075 6,962,967 (1)
 Other assets 289,828 297,902 (3)
 Total assets $10,930,194 10,265,666 6 pct
 LIABILITIES AND EQUITY
 Demand deposits in
 U.S. offices $ 1,104,678 936,131 18 pct
 Other deposits in U.S. offices 6,332,235 7,114,750 (11)
 Deposits in foreign offices 100,782 108,282 (7)
 Total deposits 7,537,695 8,159,163 (8)
 Short-term borrowings 2,501,935 1,342,862 86
 Accrued interest and
 other liabilities 122,481 158,867 (23)
 Long-term borrowings and
 capital leases 75,615 2,100 -
 Total liabilities 10,237,726 9,662,992 6
 Stockholders' equity 692,468 602,674 15
 Total liabilities and
 stockholders' equity $10,930,194 10,265,666 6 pct
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Average Balance Sheet
 Three months ended
 Dollars in thousands September 30
 1993 1992 Change
 ASSETS
 Money-market assets $ 572,559 650,755 (12) pct
 Investment securities 2,384,108 1,773,454 34
 Loans and leases, net of
 unearned discount 6,990,803 7,102,828 (2)
 Total earning assets 9,947,470 9,527,037 4
 Other assets 400,484 427,350 (6)
 Total assets $10,347,954 9,954,387 4 pct
 LIABILITIES AND EQUITY
 Interest-Bearing Deposits $ 6,534,803 7,374,831 (11) pct
 Borrowings 2,024,658 938,011 116
 Total interest-bearing
 liabilities 8,559,461 8,312,842 3
 Demand deposits 981,149 899,214 9
 Other liabilities 127,121 149,151 (15)
 Total liabilities 9,667,731 9,361,207 3
 Preferred stockholders' equity 40,000 40,000 -
 Common stockholders' equity 640,223 553,180 16
 Total stockholders' equity 680,223 593,180 15
 Total liabilities and
 stockholders' equity $10,347,954 9,954,387 4 pct
 FIRST EMPIRE STATE CORPORATION
 Condensed Consolidated Average Balance Sheet
 Nine months ended
 Dollars in thousands September 30
 1993 1992 Change
 ASSETS
 Money-market assets $ 844,569 438,189 93 pct
 Investment securities 2,055,742 2,061,974 -
 Loans and leases, net of
 unearned discount 6,949,435 6,405,814 8
 Total earning assets 9,849,746 8,905,977 11
 Other assets 411,157 381,808 8
 Total assets $10,260,903 9,287,785 10 pct
 LIABILITIES AND EQUITY
 Interest-Bearing Deposits $ 6,707,959 6,818,768 (2) pct
 Borrowings 1,797,674 1,017,059 77
 Total interest-bearing
 liabilities 8,505,633 7,835,827 9
 Demand deposits 964,760 731,201 32
 Other liabilities 131,170 148,046 (11)
 Total liabilities 9,601,563 8,715,074 10
 Preferred stockholders' equity 40,000 40,000 -
 Common stockholders' equity 619,340 532,711 16
 Total stockholders' equity 659,340 572,711 15
 Total liabilities and
 stockholders' equity $10,260,903 9,287,785 10 pct
 -0- 10/12/93
 /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 -- CL007 -- 0958 10/12/93 09:17 EDT
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Date:Oct 12, 1993
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