The ratings on Buffalo, N.Y.-based M&T Bank Corp. (M&T) are based on its dominant market share in upstate New York and central Pennsylvania, its expanded footprint as a result of its acquisition of Allfirst Financial, its improved and consistent profitability, and its better-than-average asset quality. The Allfirst acquisition provided a broader geographic reach, which now includes New York, Pennsylvania, Maryland, and Virginia, where M&T now maintains strong market shares. Synergistic opportunities grew from the transaction, as Allfirst's retail and asset management businesses complement M&T's small business expertise. The opportunities afforded by the combination have come at the cost of a sizable amount of goodwill, continuing M&T's historically aggressive capital position. Capital rebuilding efforts, strong earnings, and relatively high levels of
