Note 8 — Benefit Plans The Company has defined benefit pension plans covering certain employees in the United States and certain international locations.
Postretirement healthcare and life insurance benefits provided to qualifying domestic retirees as well as other postretirement benefit plans in international countries are not material.
The measurement date used for the Company’s employee benefit plans is September 30.
Effective January 1, 2018, the legacy U. S.  pension plan was frozen to limit the participation of employees who are hired or re-hired by the Company, or who transfer employment to the Company, on or after January 1, 2018.
Net pension cost for the years ended September 30 included the following components:
## Table 0 ##
The amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in Accumulated other comprehensive income (loss) in prior periods.
The settlement losses recorded in 2018 and 2016 primarily included lump sum benefit payments associated with the Company’s U. S.  supplemental pension plan.
The Company recognizes pension settlements when payments from the supplemental plan exceed the sum of service and interest cost components of net periodic pension cost associated with this plan for the fiscal year.
M & T BANK CORPORATION AND SUBSIDIARIES Consolidated Statement of Changes in Stockholders’ Equity
## Table 1 ##
See accompanying notes to financial statements.
M & T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements — (Continued) The amount of hedge ineffectiveness recognized in 2005, 2004 and 2003 was not material to the Company’s results of operations.
The Company utilizes commitments to sell residential real estate loans to hedge the exposure to changes in the fair value of residential real estate loans held for sale.
Such commitments have been designated as fair value hedges and, as a result, the commitments and the hedged loans are generally recorded at estimated fair value.
The Company also utilizes commitments to sell residential real estate loans to offset the exposure to changes in the fair value of certain commitments to originate residential real estate loans for sale.
As a result of these activities, at December 31, 2005 net unrealized pre-tax losses related to loans held for sale, commitments to originate loans for sale, and commitments to sell loans were approximately $5 million while at December 31, 2004 there were net unrealized pre-tax gains of $3 million related to such items.
Such unrealized gains and losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold.
As required by SAB No.105, in estimating such unrealized gains and losses in 2005 and 2004, any value ascribable to cash flows that will be realized in connection with loan servicing activities has not been included in the determination of fair value of loans held for sale or commitments to originate loans for sale.
Value ascribable to that portion of cash flows is now recognized at the time the underlying mortgage loans are sold.
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 $6.7 billion and $12,486,000, respectively, at December 31, 2005 and notional values and estimated fair value gains of $5.9 billion and $9,142,000, respectively, at December 31, 2004.
Foreign exchange and other option and futures contracts totaled approximately $679 million and $512 million at December 31, 2005 and 2004, respectively.
Such contracts were valued at gains of $428,000 and $261,000 at December 31, 2005 and 2004, 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 $14,380,000, $11,144,000 and $6,620,000 in 2005, 2004 and 2003, respectively.18.
Variable interest entities and asset securitizations Variable interest entities In January 2003, the FASB issued FASB Interpretation No.46 (‘‘FIN 46’’), ‘‘Consolidation of Variable Interest Entities.
’’ The FASB’s stated intent in issuing FIN 46 was to clarify the application of Accounting Research Bulletin No.51, ‘‘Consolidated Financial Statements,’’ to certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties.
FIN 46 requires an enterprise to consolidate a variable interest entity (as defined in FIN 46) if that enterprise has a variable interest (or combination of variable interests) that will absorb a majority of the entity’s expected losses if they occur, receive a majority of the entity’s expected returns if they occur, or both.
In December 2003, the FASB issued a revised FIN 46 (‘‘FIN 46R’’), which attempted to clarify the guidance in the original interpretation.
FIN 46 applied to
losses.
Given the Company’s high concentration of commercial loans and commercial real estate loans in New York State, including the upstate New York region, and central Pennsylvania, and considering the other factors already discussed herein, management considers the allocated and unallocated portions of the allowance for credit losses to be prudent and reasonable.
Nevertheless, the Company’s allowance is general in nature and is available to absorb losses from any loan or lease category.
Table 12 ALLOCATION OF THE ALLOWANCE FOR CREDIT LOSSES TO LOAN CATEGORIES
## Table 3 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Pension Plans</td></tr><tr><td>(Millions of dollars)</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Service cost</td><td>$136</td><td>$110</td><td>$81</td></tr><tr><td>Interest cost</td><td>90</td><td>61</td><td>72</td></tr><tr><td>Expected return on plan assets</td><td>-154</td><td>-112</td><td>-109</td></tr><tr><td>Amortization of prior service credit</td><td>-13</td><td>-14</td><td>-15</td></tr><tr><td>Amortization of loss</td><td>78</td><td>92</td><td>77</td></tr><tr><td>Settlements</td><td>2</td><td>—</td><td>7</td></tr><tr><td>Net pension cost</td><td>$137</td><td>$138</td><td>$113</td></tr><tr><td>Net pension cost included in the preceding table that is attributable to international plans</td><td>$34</td><td>$43</td><td>$35</td></tr></table>
<table><tr><td></td><td> Preferred  Stock</td><td> Common  Stock</td><td>Common Stock Issuable</td><td>Additional Paid-in Capital</td><td>Retained Earnings</td><td>Accumulated Other Comprehensive Income (Loss), Net</td><td>Treasury Stock</td><td>Total</td></tr><tr><td></td><td colspan="8">(In thousands)</td></tr><tr><td> 2003</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Balance — January 1, 2003</td><td>$—</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>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><tr><td> 2005</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>782,183</td><td>—</td><td>—</td><td>782,183</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>-43,864</td><td>—</td><td>-43,864</td></tr><tr><td>Minimum pension liability adjustment</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-36,857</td><td>—</td><td>-36,857</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>701,462</td></tr><tr><td>Purchases of treasury stock</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-509,609</td><td>-509,609</td></tr><tr><td>Repayment of management stock ownership program receivable</td><td>—</td><td>—</td><td>—</td><td>304</td><td>—</td><td>—</td><td>—</td><td>304</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: Compensation expense</td><td>—</td><td>—</td><td>—</td><td>45,191</td><td>—</td><td>—</td><td>—</td><td>45,191</td></tr><tr><td>Exercises</td><td>—</td><td>—</td><td>—</td><td>-57,112</td><td>—</td><td>—</td><td>163,864</td><td>106,752</td></tr><tr><td>Directors’ stock plan</td><td>—</td><td>—</td><td>—</td><td>87</td><td>—</td><td>—</td><td>1,009</td><td>1,096</td></tr><tr><td>Deferred compensation plans, net, including dividend equivalents</td><td>—</td><td>—</td><td>-416</td><td>-229</td><td>-176</td><td>—</td><td>1,016</td><td>195</td></tr><tr><td>Common stock cash dividends — $1.75 per share</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-198,619</td><td>—</td><td>—</td><td>-198,619</td></tr><tr><td>Balance — December 31, 2005</td><td>$—</td><td>60,198</td><td>5,363</td><td>2,886,153</td><td>3,854,275</td><td>-97,930</td><td>-831,673</td><td>5,876,386</td></tr></table>
<table><tr><td></td><td> 2005</td><td> 2004</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>$89,810</td><td>$102,814</td></tr><tr><td>Gross unrealized losses</td><td>76,896</td><td>93,411</td></tr><tr><td>Year ended December 31:</td><td></td><td></td></tr><tr><td>Average gross unrealized gains</td><td>$93,465</td><td>$119,167</td></tr><tr><td>Average gross unrealized losses</td><td>82,389</td><td>110,397</td></tr></table>
<table><tr><td> December 31</td><td> 2005</td><td> 2004</td><td> 2003</td><td> 2002</td><td> 2001</td></tr><tr><td></td><td colspan="5"> (Dollars in thousands)</td></tr><tr><td>Commercial, financial, agricultural, etc.</td><td>$136,852</td><td>$147,550</td><td>$186,902</td><td>$120,627</td><td>$130,156</td></tr><tr><td>Real estate</td><td>161,003</td><td>166,910</td><td>170,493</td><td>152,758</td><td>139,848</td></tr><tr><td>Consumer</td><td>133,541</td><td>148,591</td><td>152,759</td><td>113,711</td><td>94,710</td></tr><tr><td>Unallocated</td><td>206,267</td><td>163,813</td><td>103,904</td><td>49,376</td><td>60,294</td></tr><tr><td>Total</td><td>$637,663</td><td>$626,864</td><td>$614,058</td><td>$436,472</td><td>$425,008</td></tr></table>

Question: Which year is Net income for Retained Earnings the least?
Answer: 2003