M&T BANK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
## Table 0 ##
See accompanying notes to financial statements.
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) financial statements.
Because the transactions were non-recourse, the Company’s maximum exposure to loss as a result of its association with the trusts is limited to realizing the carrying value of the retained securities and servicing rights.
The combined outstanding principal amount of mortgage-backed securities issued by the qualified special purpose trusts was $631 million at December 31, 2007 and $732 million at December 31, 2006.
The principal amount of such securities held by the Company was $539 million and $627 million at December 31, 2007 and 2006, respectively.
At December 31, 2007 and 2006, loans of the trusts that were 30 or more days delinquent totaled $15 million and $14 million, respectively.
Credit losses, net of recoveries, for the trusts in 2007 and 2006 were insignificant.
There were no significant repurchases of delinquent or foreclosed loans from the trusts by the Company in 2007 or 2006.
Certain cash flows between the Company and the trusts were as follows:
## Table 1 ##
A summary of the fair values of retained subordinated interests resulting from the Company’s residential mortgage loan securitization activities follows.
Although the estimated fair values of the retained subordinated interests were obtained from independent pricing sources, the Company has modeled the sensitivity of such fair values to changes in certain assumptions as summarized in the table below.
These calculated sensitivities are hypothetical and actual changes in the fair value may differ significantly from the amounts presented herein.
The effect of a variation in a particular assumption on the fair values is calculated without changing any other assumption.
In reality, changes in one factor may result in changes in another which may magnify or counteract the sensitivities.
The changes in assumptions are presumed to be instantaneous.
The hypothetical effect of adverse changes on the Company’s retained capitalized servicing assets at December 31, 2007 is included in note 7.
## Table 2 ##
The subordinated retained securities do not have pro rata participation in loan principal prepayments for the first seven years of each securitization.
The assumed weighted-average discount rate is 126 basis points higher than the weighted-average coupon of the underlying mortgage loans at December 31, 2007.19.
Fair value of financial instruments SFAS No.107, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the estimated fair value of financial instruments.
Fair value is generally defined as the price a willing buyer and a willing seller would exchange for a financial instrument in other than a distressed sale situation.
With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist.
The Company, in attempting to comply with the provisions of SFAS No.107, has not attempted to market its financial instruments to potential buyers, if any exist.
Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely
Regulators.
As an additional source of funding, M&T issued $300 million of senior notes in May 2007.
Those notes bear a fixed rate of interest of 5.375% and are due on May 24, 2012.
The Company has issued subordinated capital notes from time to time to provide liquidity and enhance regulatory capital ratios.
Such notes qualify for inclusion in the Company’s total capital as defined by federal regulators.
M&T Bank issued $400 million of subordinated notes in December 2007.
The notes bear a fixed rate of interest of 6.625% and mature in December 2017.
In December 2006, M&T Bank issued $500 million of subordinated notes, which bear a fixed rate of interest of 5.629% for ten years and a floating rate thereafter, at a rate equal to three-month LIBOR plus .64%.
The notes are redeemable at the Company’s option after the fixed-rate period ends, subject to prior regulatory approval.
Additional information about the Company’s borrowings is included in note 9 of Notes to Financial Statements.
The Company has informal and sometimes reciprocal sources of funding available through various arrangements for unsecured short-term borrowings from a wide group of banks and other financial institutions.
Short-term federal funds borrowings were $809 million and $4.2 billion at December 31, 2008 and 2007, respectively.
In general, those borrowings were unsecured and matured on the next business day.
As already noted, offshore branch deposits and brokered certificates of deposit have been used by the Company as an alternative to short-term borrowings.
Offshore branch deposits also generally mature on the next business day and totaled $4.0 billion and $5.9 billion at December 31, 2008 and 2007, respectively.
Outstanding brokered time deposits at December 31, 2008 and December 31, 2007 were $487 million and $1.8 billion, respectively.
At December 31, 2008, the weighted-average remaining term to maturity of brokered time deposits was 14 months.
Certain of these brokered deposits have provisions that allow for early redemption.
Information regarding such deposits is included under the heading “Net Interest Income/Lending and Funding Activities.
” The Company’s ability to obtain funding from these or other sources could be negatively affected should the Company experience a substantial deterioration in its financial condition or its debt ratings, or should the availability of short-term funding become restricted due to a disruption in the financial markets.
The Company attempts to quantify such credit-event risk by modeling scenarios that estimate the liquidity impact resulting from a short-term ratings downgrade over various grading levels.
Such impact is estimated by attempting to measure the effect on available unsecured lines of credit, available capacity from secured borrowing sources and securitizable assets.
Information about the credit ratings of M&T and M&T Bank is presented in table 15.
Additional information regarding the terms and maturities of all of the Company’s short-term and long-term borrowings is provided in note 9 of Notes to Financial Statements.
In addition to deposits and borrowings, other sources of liquidity include maturities of investment securities and other earning assets, repayments of loans and investment securities, and cash generated from operations, such as fees collected for services.
Table 15 DEBT RATINGS
## Table 3 ##
Certain customers of the Company obtain financing through the issuance of variable rate demand bonds (“VRDBs”).
The VRDBs are generally enhanced by direct-pay letters of credit provided by M&T
contracts as of December 31, 2006, which all mature in 2007.
Forward contract notional amounts presented below are expressed in the stated currencies (in thousands).
Forward Currency Contracts:
## Table 4 ##
A movement of 10% in the value of the U. S.  dollar against foreign currencies would impact our expected net earnings by approximately $0.1 million.
ITEM 8.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The financial statements and supplementary data required by this Item are included herein, commencing on page F-1.
ITEM 9.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.
ITEM 9A.
CONTROLS AND PROCEDURES (a) Evaluation of Disclosure Controls and Procedures Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report.
Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report are functioning effectively to provide reasonable assurance that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure.
A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
(b) Management’s Report on Internal Control Over Financial Reporting Our management’s report on internal control over financial reporting is set forth on page F-2 of this Annual Report on Form 10-K and is incorporated by reference herein.
(c) Change in Internal Control over Financial Reporting No change in our internal control over financial reporting occurred during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B.
OTHER INFORMATION None.

<table><tr><td></td><td> Preferred  Stock</td><td> Common  Stock</td><td>Common Stock Issuable</td><td>Additional Paid-in Capital</td><td>Retained Earnings</td><td>Accumulated Other Comprehensive Income (Loss), Net</td><td>Treasury Stock</td><td>Total</td></tr><tr><td></td><td colspan="8">(In thousands)</td></tr><tr><td> 2002</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance — January 1, 2002</td><td>$—</td><td>48,570</td><td>6,162</td><td>1,194,942</td><td>1,938,087</td><td>22,819</td><td>-252,140</td><td>2,958,440</td></tr><tr><td>Comprehensive income:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>—</td><td>—</td><td>—</td><td>—</td><td>456,752</td><td>—</td><td>—</td><td>456,752</td></tr><tr><td>Other comprehensive income, net of tax and reclassification adjustments:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Unrealized gains on investment securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>32,277</td><td>—</td><td>32,277</td></tr><tr><td>Unrealized losses on cash flow hedge</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-324</td><td>—</td><td>-324</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>488,705</td></tr><tr><td>Purchases of treasury stock</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-240,314</td><td>-240,314</td></tr><tr><td>Stock-based compensation plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Stock option and purchase plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Compensation expense</td><td>—</td><td>—</td><td>—</td><td>40,579</td><td>—</td><td>—</td><td>—</td><td>40,579</td></tr><tr><td>Exercises</td><td>—</td><td>—</td><td>—</td><td>-42,259</td><td>—</td><td>—</td><td>98,854</td><td>56,595</td></tr><tr><td>Directors’ stock plan</td><td>—</td><td>—</td><td>—</td><td>35</td><td>—</td><td>—</td><td>994</td><td>1,029</td></tr><tr><td>Deferred compensation plans, net, including dividend equivalents</td><td>—</td><td>—</td><td>28</td><td>-299</td><td>-133</td><td>—</td><td>707</td><td>303</td></tr><tr><td>Common stock cash dividends — $1.05 per share</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-96,858</td><td>—</td><td>—</td><td>-96,858</td></tr><tr><td>Balance — December 31, 2002</td><td>$—</td><td>48,570</td><td>6,190</td><td>1,192,998</td><td>2,297,848</td><td>54,772</td><td>-391,899</td><td>3,208,479</td></tr><tr><td> 2003</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Comprehensive income:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>—</td><td>—</td><td>—</td><td>—</td><td>573,942</td><td>—</td><td>—</td><td>573,942</td></tr><tr><td>Other comprehensive income, net of tax and reclassification adjustments:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Unrealized losses on investment securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-17,283</td><td>—</td><td>-17,283</td></tr><tr><td>Unrealized gains on cash flow hedge</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>622</td><td>—</td><td>622</td></tr><tr><td>Minimum pension liability adjustment</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-12,458</td><td>—</td><td>-12,458</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>544,823</td></tr><tr><td>Acquisition of Allfirst Financial Inc. — common stock issued</td><td>—</td><td>10,969</td><td>—</td><td>1,617,034</td><td>—</td><td>—</td><td>365,953</td><td>1,993,956</td></tr><tr><td>Repayment of management stock ownership program receivable</td><td>—</td><td>—</td><td>—</td><td>23</td><td>—</td><td>—</td><td>—</td><td>23</td></tr><tr><td>Stock-based compensation plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Stock option and purchase plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Compensation expense</td><td>—</td><td>—</td><td>—</td><td>43,228</td><td>—</td><td>—</td><td>—</td><td>43,228</td></tr><tr><td>Exercises</td><td>—</td><td>509</td><td>—</td><td>35,045</td><td>—</td><td>—</td><td>25,288</td><td>60,842</td></tr><tr><td>Directors’ stock plan</td><td>—</td><td>4</td><td>—</td><td>726</td><td>—</td><td>—</td><td>175</td><td>905</td></tr><tr><td>Deferred compensation plans, net, including dividend equivalents</td><td>—</td><td>1</td><td>136</td><td>-91</td><td>-152</td><td>—</td><td>483</td><td>377</td></tr><tr><td>Common stock cash dividends — $1.20 per share</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-135,423</td><td>—</td><td>—</td><td>-135,423</td></tr><tr><td>Balance — December 31, 2003</td><td>$—</td><td>60,053</td><td>6,326</td><td>2,888,963</td><td>2,736,215</td><td>25,653</td><td>—</td><td>5,717,210</td></tr><tr><td> 2004</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Comprehensive income:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>—</td><td>—</td><td>—</td><td>—</td><td>722,521</td><td>—</td><td>—</td><td>722,521</td></tr><tr><td>Other comprehensive income, net of tax and reclassification adjustments:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Unrealized losses on investment securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-42,823</td><td>—</td><td>-42,823</td></tr><tr><td>Minimum pension liability adjustment</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-39</td><td>—</td><td>-39</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>679,659</td></tr><tr><td>Purchases of treasury stock</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-610,261</td><td>-610,261</td></tr><tr><td>Stock-based compensation plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Stock option and purchase plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Compensation expense</td><td>—</td><td>—</td><td>—</td><td>48,103</td><td>—</td><td>—</td><td>—</td><td>48,103</td></tr><tr><td>Exercises</td><td>—</td><td>144</td><td>—</td><td>-38,361</td><td>—</td><td>—</td><td>119,444</td><td>81,227</td></tr><tr><td>Directors’ stock plan</td><td>—</td><td>1</td><td>—</td><td>167</td><td>—</td><td>—</td><td>817</td><td>985</td></tr><tr><td>Deferred compensation plans, net, including dividend equivalents</td><td>—</td><td>—</td><td>-547</td><td>-960</td><td>-180</td><td>—</td><td>2,047</td><td>360</td></tr><tr><td>Common stock cash dividends — $1.60 per share</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-187,669</td><td>—</td><td>—</td><td>-187,669</td></tr><tr><td>Balance — December 31, 2004</td><td>$—</td><td>60,198</td><td>5,779</td><td>2,897,912</td><td>3,270,887</td><td>-17,209</td><td>-487,953</td><td>5,729,614</td></tr></table>
<table><tr><td></td><td colspan="2"> Year Ended December 31</td></tr><tr><td></td><td> 2007</td><td> 2006</td></tr><tr><td></td><td colspan="2"> (In thousands)</td></tr><tr><td>Principal and interest payments on retained securities</td><td>$124,469</td><td>$173,207</td></tr><tr><td>Servicing fees received</td><td>1,864</td><td>2,223</td></tr></table>
<table><tr><td></td><td> Fair   Value</td><td> Weighted-   Average   Prepayment   Speed</td><td> Weighted-   Average   Discount   Rate</td><td> Annual   Expected   Credit   Defaults</td></tr><tr><td></td><td colspan="4"> (Dollars in thousands)</td></tr><tr><td>Retained subordinated interests:</td><td></td><td></td><td></td><td></td></tr><tr><td>As of securitization date</td><td>$91,705</td><td>23.81%</td><td>7.68%</td><td>.09%</td></tr><tr><td>As of December 31, 2007</td><td>53,160</td><td>10.82%</td><td>7.36%</td><td>.11%</td></tr><tr><td>Impact on fair value of 10% adverse change</td><td></td><td>$-90</td><td>$-1,678</td><td>$-149</td></tr><tr><td>Impact on fair value of 20% adverse change</td><td></td><td>-189</td><td>-3,261</td><td>-314</td></tr></table>
<table><tr><td></td><td> Moody’s</td><td> Standard   and Poor’s</td><td> Fitch</td></tr><tr><td>M&T Bank Corporation</td><td></td><td></td><td></td></tr><tr><td>Senior debt</td><td>A2</td><td>A−</td><td>A−</td></tr><tr><td>Subordinated debt</td><td>A3</td><td>BBB+</td><td>BBB+</td></tr><tr><td>M&T Bank</td><td></td><td></td><td></td></tr><tr><td>Short-term deposits</td><td>Prime-1</td><td>A-1</td><td>F1</td></tr><tr><td>Long-term deposits</td><td>A1</td><td>A</td><td>A</td></tr><tr><td>Senior debt</td><td>A1</td><td>A</td><td>A−</td></tr><tr><td>Subordinated debt</td><td>A2</td><td>A−</td><td>BBB+</td></tr></table>
<table><tr><td></td><td>(Pay)/Receive</td></tr><tr><td>U.S. dollars</td><td>-114,000</td></tr><tr><td>Euros</td><td>-4,472</td></tr><tr><td>Singapore dollars</td><td>37,180</td></tr><tr><td>Canadian dollars</td><td>81,234</td></tr><tr><td>Malaysian ringgits</td><td>85,963</td></tr></table>

Question: what is a rough estimate of the ratio of securities given to securities received?
Answer: 0.57967