M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) Data relating to the funding position of the plans were as follows:
## Table 0 ##
The Company has an unfunded supplemental pension plan for certain key executives.
The projected benefit obligation and accumulated benefit obligation included in the preceding data related to such plan was $46,574,000 and $46,457,000, respectively, as of December 31, 2004 and $40,502,000 and $40,500,000, respectively, as of December 31, 2003.
The accumulated benefit obligation for all defined benefit pension plans was $580,325,000 and $550,313,000 at December 31, 2004 and 2003, respectively.
As of December 31, 2004, the accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $573,607,000 (including $46,457,000 related to the unfunded supplemental pension plan) and $458,046,000, respectively.
As of December 31, 2003, the accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $543,547,000 (including $40,500,000
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) insignificant.
The Company did not repurchase any delinquent or foreclosed loans from the trusts in 2004 or 2003.
Certain cash flows between the Company and the two 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, 2004 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 the securitization.
The assumed weighted-average discount rate is 151 basis points higher than the weighted-average coupon of the underlying mortgage loans at December 31, 2004.19.
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-tofour 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 from any estimate of fair value made without the benefit of negotiations.
Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time.
The estimated fair values of investments in readily marketable debt and equity securities were calculated based on quoted market prices at the respective year-end.
In determining amounts to present for other financial instruments, the Company generally used calculations based upon discounted cash flows of the
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) Other commitments and contingencies As described in note 20, in the normal course of business, various commitments and contingent liabilities are outstanding, such as loan commitments, credit guarantees and letters of credit.
The Company’s pricing of such financial instruments is based largely on credit quality and relationship, probability of funding and other requirements.
Loan commitments often have fixed expiration dates and contain termination and other clauses which provide for relief from funding in the event of significant deterioration in the credit quality of the customer.
The rates and terms of the Company’s loan commitments, credit guarantees and letters of credit are competitive with other financial institutions operating in markets served by the Company.
The Company believes that the carrying amounts, which are included in other liabilities, are reasonable estimates of the fair value of these financial instruments.
The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company.
The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities.
Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise.
Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made.
Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.20.
Commitments and contingencies In the normal course of business, various commitments and contingent liabilities are outstanding.
The following table presents the Company’s significant commitments.
Certain of these commitments are not included in the Company’s consolidated balance sheet.
## Table 3 ##
Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee.
Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party.
Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is
which, $44.9 million, or $38.2 million, net of taxes, is expected to be reclassified to earnings over the next twelve months.
We also enter into foreign currency forward exchange contracts with terms of one month to manage currency exposures for assets and liabilities denominated in a currency other than an entity’s functional currency.
As a result, any foreign currency translation gains/losses recognized in earnings under SFAS No.52, “Foreign Currency Translation” are generally offset with gains/losses on the foreign currency forward exchange contracts in the same reporting period.
Other Comprehensive Income – Other comprehensive income refers to revenues, expenses, gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to stockholders’ equity.
Other comprehensive income is comprised of foreign currency translation adjustments, unrealized foreign currency hedge gains and losses, unrealized gains and losses on available-for-sale securities and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions.
The components of accumulated other comprehensive income are as follows (in millions):

<table><tr><td></td><td colspan="2">Pension Benefits</td><td colspan="2">Postretirement Benefits</td></tr><tr><td></td><td>2004</td><td>2003</td><td>2004</td><td>2003</td></tr><tr><td></td><td colspan="4">(In thousands)</td></tr><tr><td>Change in benefit obligation:</td><td></td><td></td><td></td><td></td></tr><tr><td>Benefit obligation at beginning of year</td><td>$606,411</td><td>$312,776</td><td>$78,865</td><td>$29,543</td></tr><tr><td>Service cost</td><td>28,505</td><td>24,530</td><td>879</td><td>701</td></tr><tr><td>Interest cost</td><td>36,704</td><td>31,495</td><td>5,426</td><td>4,129</td></tr><tr><td>Plan participants’ contributions</td><td>—</td><td>—</td><td>2,143</td><td>1,675</td></tr><tr><td>Actuarial loss</td><td>17,349</td><td>31,155</td><td>11,231</td><td>3,640</td></tr><tr><td>Business combinations</td><td>—</td><td>230,610</td><td>—</td><td>47,408</td></tr><tr><td>Benefits paid</td><td>-34,083</td><td>-24,155</td><td>-11,206</td><td>-8,231</td></tr><tr><td>Benefit obligation at end of year</td><td>654,886</td><td>606,411</td><td>87,338</td><td>78,865</td></tr><tr><td>Change in plan assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fair value of plan assets at beginning of year</td><td>464,594</td><td>254,419</td><td>—</td><td>—</td></tr><tr><td>Actual return on plan assets</td><td>31,731</td><td>95,788</td><td>—</td><td>—</td></tr><tr><td>Plan participants’ contributions</td><td>—</td><td>—</td><td>2,143</td><td>1,675</td></tr><tr><td>Business combinations</td><td>—</td><td>136,086</td><td>—</td><td>—</td></tr><tr><td>Benefits and other payments</td><td>-30,863</td><td>-21,699</td><td>-2,143</td><td>-1,675</td></tr><tr><td>Fair value of plan assets at end of year</td><td>465,462</td><td>464,594</td><td>—</td><td>—</td></tr><tr><td>Funded status</td><td>-189,424</td><td>-141,817</td><td>-87,338</td><td>-78,865</td></tr><tr><td>Unrecognized net actuarial loss</td><td>99,011</td><td>80,388</td><td>20,843</td><td>10,501</td></tr><tr><td>Unrecognized prior service cost</td><td>502</td><td>560</td><td>1,270</td><td>1,440</td></tr><tr><td>Prepaid (accrued) benefit cost</td><td>$-89,911</td><td>$-60,869</td><td>$-65,225</td><td>$-66,924</td></tr><tr><td>Amounts recognized in the consolidated balance sheet were:</td><td></td><td></td><td></td><td></td></tr><tr><td>Prepaid benefit cost (asset)</td><td>$4,600</td><td>$4,503</td><td>$—</td><td>$—</td></tr><tr><td>Accrued benefit cost (liability)</td><td>-115,561</td><td>-86,422</td><td>-65,225</td><td>-66,924</td></tr><tr><td>Intangible asset</td><td>563</td><td>627</td><td>—</td><td>—</td></tr><tr><td>Pre-tax charge to accumulated other comprehensive income</td><td>20,487</td><td>20,423</td><td>—</td><td>—</td></tr><tr><td></td><td>$-89,911</td><td>$-60,869</td><td>$-65,225</td><td>$-66,924</td></tr></table>
<table><tr><td></td><td colspan="2"> Year Ended December 31</td></tr><tr><td></td><td> 2004</td><td> 2003</td></tr><tr><td></td><td colspan="2"> (In thousands)</td></tr><tr><td>Principal and interest payments on retained securities</td><td>$304,448</td><td>$508,304</td></tr><tr><td>Servicing fees received</td><td>3,480</td><td>2,531</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, 2004</td><td>77,797</td><td>9.57%</td><td>7.43%</td><td>.08%</td></tr><tr><td>Impact on fair value of 10% adverse change</td><td></td><td>-60</td><td>-3,055</td><td>-230</td></tr><tr><td>Impact on fair value of 20% adverse change</td><td></td><td>-130</td><td>-5,914</td><td>-463</td></tr></table>
<table><tr><td></td><td colspan="2"> December 31</td></tr><tr><td></td><td> 2004</td><td> 2003</td></tr><tr><td></td><td colspan="2"> (In thousands)</td></tr><tr><td>Commitments to extend credit</td><td></td><td></td></tr><tr><td>Home equity lines of credit</td><td>$4,283,371</td><td>$3,747,663</td></tr><tr><td>Commercial real estate loans to be sold</td><td>105,660</td><td>70,747</td></tr><tr><td>Other commercial real estate and construction</td><td>1,809,382</td><td>730,485</td></tr><tr><td>Residential real estate loans to be sold</td><td>422,159</td><td>458,863</td></tr><tr><td>Other residential real estate</td><td>449,564</td><td>639,852</td></tr><tr><td>Commercial and other</td><td>6,645,878</td><td>6,786,997</td></tr><tr><td>Standby letters of credit</td><td>3,162,901</td><td>3,056,611</td></tr><tr><td>Commercial letters of credit</td><td>57,455</td><td>69,387</td></tr><tr><td>Financial guarantees and indemnification contracts</td><td>1,168,517</td><td>1,061,691</td></tr><tr><td>Commitments to sell real estate loans</td><td>931,924</td><td>895,808</td></tr></table>

Question: What is the ratio of Actuarial loss of Pension Benefits in Table 0 to the Commercial letters of credit in Table 3 in 2003?
Answer: 0.449