Table 20 QUARTERLY TRENDS
## Table 0 ##
(a) Excludes impact of merger-related expenses and net securities transactions.
(b) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects.
A reconciliation of net income and net operating income appears in Table 21.
(c) The difference between total assets and total tangible assets, and stockholders’ equity and tangible stockholders’ equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances.
A reconciliation of such balances appears in Table 21.
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) 4.
Loans and leases Total gross loans and leases outstanding were comprised of the following:
## Table 1 ##
One-to-four family residential mortgage loans held for sale were $774 million at December 31, 2007 and $1.9 billion at December 31, 2006.
In March 2007, the Company transferred approximately $883 million of residential real estate loans (including $808 million of first mortgage loans and $75 million of second mortgage loans) from its held-for-sale loan portfolio to its held-for-investment portfolio.
Those loans represented alternative (“Alt-A”) residential real estate loans that the Company had been actively originating for sale in the secondary market.
Unfavorable market conditions and lack of market liquidity impacted the Company’s willingness to sell those loans.
Accordingly, the Alt-A loans were transferred at the lower of cost or market value resulting in a reduction of the carrying value of the loans and mortgage banking revenues of $12 million.
Commercial mortgage loans held for sale were $79 million at December 31, 2007 and $49 million at December 31, 2006.
Included in consumer loans were home equity loans held for sale of $619 thousand at December 31, 2007 and $65 million at December 31, 2006.
As of December 31, 2007, approximately $8 million of one-to-four family residential mortgage loans serviced for others had been sold with credit recourse.
As of December 31, 2007, approximately $1.0 billion of commercial mortgage loan balances serviced for others had been sold with recourse in conjunction with the Company’s participation in the FNMA Delegated Underwriting and Servicing (“DUS”) program.
At December 31, 2007, the Company estimated that the recourse obligations described above were not material to the Company’s consolidated financial position.
There have been no material losses incurred as a result of those credit recourse arrangements.
Nonperforming loans (loans on which interest was not being accrued or had been renegotiated at below-market interest rates) totaled $447,166,000 at December 31, 2007 and $224,228,000 at December 31, 2006.
If nonaccrual and renegotiated loans had been accruing interest at their originally contracted terms, interest income on such loans would have amounted to $36,207,000 in 2007 and $17,173,000 in 2006.
The actual amounts included in interest income during 2007 and 2006 on such loans were $12,492,000 and $6,770,000, respectively.
Beginning in December 2007, residential real estate loans previously classified as nonaccrual when payments were 180 days past due now stop accruing interest when principal or interest is delinquent 90 days.
The impact of the acceleration of the classification of residential real estate loans as nonaccrual resulted in an increase in nonaccrual loans of $84 million and a corresponding decrease in loans past due 90 days and accruing interest.
As a result of that acceleration, previously accrued interest of $2 million was reversed and charged against interest income.
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) The net effect of interest rate swap agreements was to decrease net interest income by $2,556,000 in 2007 and $4,281,000 in 2006 and to increase net interest income by $5,526,000 in 2005.
The average notional amounts of interest rate swap agreements impacting net interest income that were entered into for interest rate risk management purposes were $1,410,542,000 in 2007, $774,268,000 in 2006 and $767,175,000 in 2005.
The amount of hedge ineffectiveness recognized in 2007, 2006 and 2005 was not material to the Company’s results of operations.
The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale.
Such commitments have been designated as fair value hedges.
The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale.
As a result of these activities, net unrealized pre-tax losses related to hedged loans held for sale, commitments to originate loans for sale, and commitments to sell loans were approximately $7 million at December 31, 2007, compared with unrealized pre-tax gains of $4 million at December 31, 2006.
Changes in unrealized gains or losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied.
Derivative financial instruments used for trading purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures.
Interest rate contracts entered into for trading purposes had notional values and estimated fair value gains of $11.7 billion and $24,606,000, respectively, at December 31, 2007 and notional values and estimated fair value gains of $7.6 billion and $17,122,000, respectively, at December 31, 2006.
Foreign exchange and other option and futures contracts totaled approximately $801 million and $613 million at December 31, 2007 and 2006, respectively.
Such contracts were valued at gains of $686,000 and $477,000 at December 31, 2007 and 2006, respectively.
Trading account assets and liabilities are recorded in the consolidated balance sheet at estimated fair value.
The following table includes information about the estimated fair value of derivative financial instruments used for trading purposes:
## Table 2 ##
Net gains realized from derivative financial instruments used for trading purposes were $12,152,000, $14,800,000 and $14,380,000 in 2007, 2006 and 2005, respectively.18.
Variable interest entities and asset securitizations Variable interest entities Variable interest entities in which the Company holds a significant variable interest are described below.
M&T Auto Receivables I, LLC is a special purpose subsidiary of M&T Bank formed in 2002 for the purpose of borrowing $500 million in a revolving asset-backed structured borrowing with an unaffiliated conduit lender.
The revolving asset-backed structured borrowing is secured by automobile loans and other assets transferred to the special purpose subsidiary by M&T Bank or other of its subsidiaries that totaled $557 million and $565 million at December 31, 2007 and 2006, respectively.
The activities of M&T Auto Receivables I, LLC are generally restricted to purchasing and owning automobile loans for the purpose of securing this revolving borrowing arrangement.
Proceeds from payments on the automobile loans are required to be applied in priority order for fees, principal and interest on the borrowing, and funding the monthly replenishment of loans.
Any remaining proceeds are available for distribution to M&T Bank.
The secured borrowing is prepayable, in whole or in part, at any time and is non-recourse to M&T Bank and the Company.
However, 80% of the borrowing can be put back to M&T Bank upon demand.
The Company’s maximum incremental exposure to loss resulting from the structure
core deposits represented 55% of average earning assets in 2007, compared with 57% in 2006 and 58% in 2005.
Table 8 summarizes average core deposits in 2007 and percentage changes in the components of such deposits over the past two years.
Table 8 AVERAGE CORE DEPOSITS

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="4">2007 Quarters</td><td colspan="4"> 2006 Quarters</td></tr><tr><td></td><td>Fourth</td><td>Third</td><td>Second</td><td>First</td><td>Fourth</td><td>Third</td><td>Second</td><td> First</td></tr><tr><td> Earnings and dividends</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td><i>Amounts in thousands, except per share</i></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest income (taxable-equivalent basis)</td><td>$918,200</td><td>$898,126</td><td>$883,148</td><td>$866,172</td><td>$876,197</td><td>$858,008</td><td>$817,552</td><td>$782,003</td></tr><tr><td>Interest expense</td><td>442,364</td><td>425,326</td><td>416,264</td><td>410,622</td><td>404,356</td><td>395,652</td><td>366,298</td><td>330,246</td></tr><tr><td>Net interest income</td><td>475,836</td><td>472,800</td><td>466,884</td><td>455,550</td><td>471,841</td><td>462,356</td><td>451,254</td><td>451,757</td></tr><tr><td>Less: provision for credit losses</td><td>101,000</td><td>34,000</td><td>30,000</td><td>27,000</td><td>28,000</td><td>17,000</td><td>17,000</td><td>18,000</td></tr><tr><td>Other income</td><td>160,490</td><td>252,899</td><td>283,117</td><td>236,483</td><td>256,417</td><td>273,902</td><td>262,602</td><td>252,931</td></tr><tr><td>Less: other expense</td><td>445,473</td><td>390,528</td><td>392,651</td><td>399,037</td><td>383,810</td><td>408,941</td><td>376,997</td><td>382,003</td></tr><tr><td>Income before income taxes</td><td>89,853</td><td>301,171</td><td>327,350</td><td>265,996</td><td>316,448</td><td>310,317</td><td>319,859</td><td>304,685</td></tr><tr><td>Applicable income taxes</td><td>19,297</td><td>96,872</td><td>108,209</td><td>84,900</td><td>97,996</td><td>94,775</td><td>102,645</td><td>97,037</td></tr><tr><td>Taxable-equivalent adjustment</td><td>5,626</td><td>5,112</td><td>4,972</td><td>5,123</td><td>5,123</td><td>5,172</td><td>4,641</td><td>4,731</td></tr><tr><td>Net income</td><td>$64,930</td><td>$199,187</td><td>$214,169</td><td>$175,973</td><td>$213,329</td><td>$210,370</td><td>$212,573</td><td>$202,917</td></tr><tr><td>Per common share data</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings</td><td>$.60</td><td>$1.86</td><td>$1.98</td><td>$1.60</td><td>$1.93</td><td>$1.89</td><td>$1.91</td><td>$1.82</td></tr><tr><td>Diluted earnings</td><td>.60</td><td>1.83</td><td>1.95</td><td>1.57</td><td>1.88</td><td>1.85</td><td>1.87</td><td>1.77</td></tr><tr><td>Cash dividends</td><td>$.70</td><td>$.70</td><td>$.60</td><td>$.60</td><td>$.60</td><td>$.60</td><td>$.60</td><td>$.45</td></tr><tr><td>Average common shares outstanding</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>107,859</td><td>107,056</td><td>107,939</td><td>109,694</td><td>110,705</td><td>111,047</td><td>111,259</td><td>111,693</td></tr><tr><td>Diluted</td><td>109,034</td><td>108,957</td><td>109,919</td><td>112,187</td><td>113,468</td><td>113,897</td><td>113,968</td><td>114,347</td></tr><tr><td> Performance ratios, annualized</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Return on</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average assets</td><td>.42%</td><td>1.37%</td><td>1.49%</td><td>1.25%</td><td>1.50%</td><td>1.49%</td><td>1.54%</td><td>1.49%</td></tr><tr><td>Average common stockholders’ equity</td><td>4.05%</td><td>12.78%</td><td>13.92%</td><td>11.38%</td><td>13.55%</td><td>13.72%</td><td>14.35%</td><td>13.97%</td></tr><tr><td>Net interest margin on average earning assets (taxable-equivalent basis)</td><td>3.45%</td><td>3.65%</td><td>3.67%</td><td>3.64%</td><td>3.73%</td><td>3.68%</td><td>3.66%</td><td>3.73%</td></tr><tr><td>Nonperforming loans to total loans and leases, net of unearned discount</td><td>.93%</td><td>.83%</td><td>.68%</td><td>.63%</td><td>.52%</td><td>.43%</td><td>.38%</td><td>.35%</td></tr><tr><td>Efficiency ratio(a)</td><td>56.39%</td><td>53.80%</td><td>52.37%</td><td>57.75%</td><td>52.79%</td><td>55.47%</td><td>52.29%</td><td>54.21%</td></tr><tr><td> Net operating (tangible) results(b)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net operating income (in thousands)</td><td>$83,719</td><td>$208,749</td><td>$224,190</td><td>$187,162</td><td>$224,733</td><td>$223,228</td><td>$221,838</td><td>$210,856</td></tr><tr><td>Diluted net operating income per common share</td><td>.77</td><td>1.92</td><td>2.04</td><td>1.67</td><td>1.98</td><td>1.96</td><td>1.95</td><td>1.84</td></tr><tr><td>Annualized return on</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average tangible assets</td><td>.57%</td><td>1.51%</td><td>1.65%</td><td>1.40%</td><td>1.67%</td><td>1.67%</td><td>1.69%</td><td>1.64%</td></tr><tr><td>Average tangible common stockholders’ equity</td><td>10.49%</td><td>26.80%</td><td>29.35%</td><td>24.11%</td><td>28.71%</td><td>30.22%</td><td>30.02%</td><td>29.31%</td></tr><tr><td>Efficiency ratio(a)</td><td>54.30%</td><td>51.64%</td><td>50.18%</td><td>55.09%</td><td>50.22%</td><td>52.76%</td><td>50.70%</td><td>52.36%</td></tr><tr><td> Balance sheet data</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td><i>In millions, except per share</i></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average balances</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets(c)</td><td>$61,549</td><td>$57,862</td><td>$57,523</td><td>$57,207</td><td>$56,575</td><td>$56,158</td><td>$55,498</td><td>$55,106</td></tr><tr><td>Total tangible assets(c)</td><td>58,355</td><td>54,766</td><td>54,415</td><td>54,085</td><td>53,437</td><td>53,004</td><td>52,522</td><td>52,130</td></tr><tr><td>Earning assets</td><td>54,765</td><td>51,325</td><td>50,982</td><td>50,693</td><td>50,235</td><td>49,849</td><td>49,443</td><td>49,066</td></tr><tr><td>Investment securities</td><td>7,905</td><td>7,260</td><td>6,886</td><td>7,214</td><td>7,556</td><td>7,898</td><td>8,314</td><td>8,383</td></tr><tr><td>Loans and leases, net of unearned discount</td><td>46,055</td><td>43,750</td><td>43,572</td><td>43,114</td><td>42,474</td><td>41,710</td><td>40,980</td><td>40,544</td></tr><tr><td>Deposits</td><td>38,565</td><td>36,936</td><td>37,048</td><td>37,966</td><td>38,504</td><td>39,158</td><td>38,435</td><td>37,569</td></tr><tr><td>Stockholders’ equity(c)</td><td>6,360</td><td>6,186</td><td>6,172</td><td>6,270</td><td>6,244</td><td>6,085</td><td>5,940</td><td>5,893</td></tr><tr><td>Tangible stockholders’ equity(c)</td><td>3,166</td><td>3,090</td><td>3,064</td><td>3,148</td><td>3,106</td><td>2,931</td><td>2,964</td><td>2,917</td></tr><tr><td>At end of quarter</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets(c)</td><td>$64,876</td><td>$60,008</td><td>$57,869</td><td>$57,842</td><td>$57,065</td><td>$56,373</td><td>$56,507</td><td>$55,420</td></tr><tr><td>Total tangible assets(c)</td><td>61,467</td><td>56,919</td><td>54,767</td><td>54,727</td><td>53,936</td><td>53,227</td><td>53,345</td><td>52,443</td></tr><tr><td>Earning assets</td><td>57,163</td><td>53,267</td><td>51,131</td><td>51,046</td><td>50,379</td><td>49,950</td><td>49,628</td><td>49,281</td></tr><tr><td>Investment securities</td><td>8,962</td><td>8,003</td><td>6,982</td><td>7,028</td><td>7,252</td><td>7,626</td><td>7,903</td><td>8,294</td></tr><tr><td>Loans and leases, net of unearned discount</td><td>48,022</td><td>44,778</td><td>43,744</td><td>43,507</td><td>42,947</td><td>42,098</td><td>41,599</td><td>40,859</td></tr><tr><td>Deposits</td><td>41,266</td><td>38,473</td><td>39,419</td><td>38,938</td><td>39,911</td><td>39,079</td><td>38,514</td><td>38,171</td></tr><tr><td>Stockholders’ equity(c)</td><td>6,485</td><td>6,238</td><td>6,175</td><td>6,253</td><td>6,281</td><td>6,151</td><td>6,000</td><td>5,919</td></tr><tr><td>Tangible stockholders’ equity(c)</td><td>3,076</td><td>3,149</td><td>3,073</td><td>3,138</td><td>3,152</td><td>3,005</td><td>2,838</td><td>2,942</td></tr><tr><td>Equity per common share</td><td>58.99</td><td>58.40</td><td>57.59</td><td>57.32</td><td>56.94</td><td>55.58</td><td>54.01</td><td>53.11</td></tr><tr><td>Tangible equity per common share</td><td>27.98</td><td>29.48</td><td>28.66</td><td>28.77</td><td>28.57</td><td>27.15</td><td>25.55</td><td>26.41</td></tr><tr><td> Market price per common share</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High</td><td>$108.32</td><td>$115.81</td><td>$114.33</td><td>$125.13</td><td>$124.98</td><td>$124.94</td><td>$119.93</td><td>$117.39</td></tr><tr><td>Low</td><td>77.39</td><td>97.26</td><td>104.00</td><td>112.05</td><td>117.31</td><td>116.00</td><td>112.90</td><td>105.72</td></tr><tr><td>Closing</td><td>81.57</td><td>103.45</td><td>106.90</td><td>115.83</td><td>122.16</td><td>119.96</td><td>117.92</td><td>114.14</td></tr></table>
<table><tr><td></td><td colspan="2"> 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>Loans</td><td></td><td></td></tr><tr><td>Commercial, financial, agricultural, etc.</td><td>$11,762,168</td><td>$10,472,919</td></tr><tr><td>Real estate:</td><td></td><td></td></tr><tr><td>Residential</td><td>5,515,355</td><td>5,248,119</td></tr><tr><td>Commercial</td><td>13,953,094</td><td>12,691,964</td></tr><tr><td>Construction</td><td>4,190,068</td><td>3,453,981</td></tr><tr><td>Consumer</td><td>11,301,713</td><td>9,885,883</td></tr><tr><td>Total loans</td><td>46,722,398</td><td>41,752,866</td></tr><tr><td>Leases</td><td></td><td></td></tr><tr><td>Commercial</td><td>1,624,858</td><td>1,423,637</td></tr><tr><td>Consumer</td><td>5,006</td><td>30,451</td></tr><tr><td>Total leases</td><td>1,629,864</td><td>1,454,088</td></tr><tr><td>Total loans and leases</td><td>$48,352,262</td><td>$43,206,954</td></tr></table>
<table><tr><td></td><td> 2007</td><td> 2006</td></tr><tr><td></td><td colspan="2"> (In thousands)</td></tr><tr><td>December 31:</td><td></td><td></td></tr><tr><td>Gross unrealized gains</td><td>$168,317</td><td>$82,864</td></tr><tr><td>Gross unrealized losses</td><td>143,025</td><td>65,265</td></tr><tr><td>Year ended December 31:</td><td></td><td></td></tr><tr><td>Average gross unrealized gains</td><td>$94,475</td><td>$96,041</td></tr><tr><td>Average gross unrealized losses</td><td>75,108</td><td>80,626</td></tr></table>

Question: What's the average of the Gross unrealized gains in the years where Residential is positive?
Answer: 125590
Reasoning program: add(168317,82864), divide(#0,2)