Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and other information included in this Quarterly Report on Form 10-Q as well as with M&T's 2023 Annual Report. Information regarding the Company's business, its supervision and regulation and potential risks and uncertainties that may affect the Company's business, financial condition, liquidity and results of operations are also included in M&T's 2023 Annual Report.

As described in note 1 of Notes to Financial Statements in M&T's 2023 Annual Report, certain financial reporting changes became effective in the fourth quarter of 2023. Prior periods have been presented in conformity with the new classifications.

Overview

The Company's results of operations for the second quarter of 2024 reflect a stabilization of deposit and borrowing costs after those costs increased significantly following four FOMC federal funds target rate increases totaling 100 basis points in the first three quarters of 2023. The FOMC has not adjusted that rate since. The results of operations for each of the first quarters of 2024 and 2023 included seasonal salaries and employee benefits expenses of $99 million. Estimated increases in the Company's FDIC special assessment of $29 million and $5 million were recorded in the first and second quarter of 2024 results of operations, respectively. Additional information about the FDIC special assessment is included in note 14 of Notes to Financial Statements. Other income in the first six months of 2023 included a $225 million gain on the sale of the Company's CIT business in April 2023. A summary of financial results for the Company is provided below:

SUMMARY OF FINANCIAL RESULTS

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions, except per share)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Net interest income			$	1,718					$	1,680					$	38					2		%				$	3,398					$	3,617					$	(219)					-6		%
Taxable-equivalent adjustment (a)			13						12						1						—						25						28						(3)						-8
Net interest income (taxable-equivalent basis) (a)			1,731						1,692						39						2						3,423						3,645						(222)						-6
Provision for credit losses			150						200						(50)						-25						350						270						80						30
Other income			584						580						4						1						1,164						1,390						(226)						-16
Other expense			1,297						1,396						(99)						-7						2,693						2,652						41						2
Net income			655						531						124						23						1,186						1,569						(383)						-24
Per common share data:
Basic earnings			3.75						3.04						0.71						23						6.79						9.09						(2.30)						-25
Diluted earnings			3.73						3.02						0.71						24						6.76						9.06						(2.30)						-25
Performance ratios, annualized
Return on:
Average assets			1.24		%				1.01		%																1.13		%				1.55		%
Average common shareholders’ equity			9.95						8.14																		9.05						13.02
Net interest margin			3.59						3.52																		3.56						3.97

____________________________________________

*(a)*Net interest income data are presented on a taxable-equivalent basis which is a non-GAAP measure. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on a composite income tax rate of approximately 25%.

The increase in net income in the recent quarter as compared with the first quarter of 2024 resulted from the following:

• Net interest income on a taxable-equivalent basis increased $39 million reflecting an expansion of the net interest margin by 7 basis points as the cost of interest-bearing liabilities remained flat while yields on earning assets improved from the immediately preceding quarter.

• Provision for credit losses declined $50 million reflecting lower commercial real estate loans, including criticized loans, and modest improvement in forecasted real estate prices, partially offset by commercial and industrial and consumer loan growth.

- 45 -

• Other expense declined $99 million reflecting seasonal salaries and employee benefits expenses in the first quarter of 2024, partially offset by the full-quarter impact of annual merit increases awarded in the first quarter of 2024. Lower FDIC special assessment expense and other costs of operations also contributed to the decline.

The decline in net income for the six months ended June 30, 2024 as compared with the same 2023 period reflects the following:

• Net interest income on a taxable-equivalent basis declined $222 million reflecting a narrowing of the net interest margin by 41 basis points as higher deposit and borrowing costs outpaced increased yields on the Company's earning assets.

• Provision for credit losses increased $80 million reflecting the impact of higher interest rates on the performance of commercial borrowers and loan growth.

• Other income in the first six months of 2024 declined $226 million as compared with the first six months of 2023 reflecting the gain on sale of the CIT business in April 2023.

• Other expense in the first half of 2024, excluding $34 million of FDIC special assessment expense, rose slightly from 2023. Higher salaries and employee benefits expenses and a rise in outside data processing and software costs were partially offset by lower professional and other services expenses.

The Company's effective income tax rates were 23.4% and 20.0% for the quarters ended June 30, 2024 and March 31, 2024, respectively, and 21.9% and 24.8% for the six-month periods ended June 30, 2024 and 2023, respectively. The first quarter of 2024 income tax expense reflects a net discrete benefit related to the resolution of a tax matter inherited from the acquisition of People's United.

On May 13, 2024, M&T issued 75,000 shares of Perpetual Non-Cumulative Preferred Stock, Series J, with a liquidation preference of $10,000 per share. On July 10, 2024, M&T announced its intention to redeem, on August 15, 2024, all 350,000 outstanding shares of its Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E. Additional information about the issued and outstanding preferred stock of M&T is included in note 6 of Notes to Financial Statements.

Supplemental Reporting of Non-GAAP Results of Operations

M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains (when realized) and expenses (when incurred) associated with merging acquired operations into the Company, since such items are considered by management to be “nonoperating” in nature. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

SUPPLEMENTAL REPORTING OF NON-GAAP RESULTS OF OPERATIONS

						Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions, except per share)						June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Net operating income						$	665					$	543					$	122					22		%				$	1,208					$	1,594					$	(386)					-24		%
Diluted net operating earnings per share						3.79						3.09						0.70						23						6.89						9.21						(2.32)						-25
Return on:
Average tangible assets						1.31		%				1.08		%																1.20		%				1.65		%
Average tangible common equity						15.27						12.67																		13.99						20.90
Efficiency ratio						55.3						60.8																		58.0						52.0
Tangible equity per common share (a)						$	102.42					$	99.54					$	2.88					3		%				$	102.42					$	91.58					$	10.84					12		%

____________________________________________

*(a)*At the period end.

The efficiency ratio measures the relationship of noninterest operating expenses, which exclude expenses M&T considers to be "nonoperating" in nature consisting of amortization of core deposit and other intangible assets and

- 46 -

merger-related expenses, to revenues. The calculations of the Company’s efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), and reconciliations of GAAP amounts with corresponding non-GAAP amounts are presented in Table 2.

Taxable-equivalent Net Interest Income

Interest income earned on certain of the Company's assets is exempt from federal income tax. Taxable-equivalent net interest income is a non-GAAP measure that adjusts income earned on a tax-exempt asset to present it on an equivalent basis to interest income earned on a fully taxable asset. The Company's average balance sheets accompanied by the annualized taxable-equivalent interest income and expense and the average rate on the Company's earning assets and interest-bearing liabilities are presented as follows.

AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES

						Three Months Ended
						June 30, 2024																		March 31, 2024
(Dollars in millions)						Average Balance						Interest						Average Rate						Average Balance						Interest						Average Rate
Assets
Earning assets:
Loans and leases, net of unearned discount (a):
Commercial and industrial						$	58,152					$	1,018					7.04		%				$	56,821					$	987					6.99		%
Commercial real estate						31,458						506						6.38						32,696						526						6.36
Residential real estate						23,006						249						4.32						23,136						247						4.28
Consumer						21,972						362						6.61						21,143						343						6.54
Total loans and leases, net						134,588						2,135						6.38						133,796						2,103						6.32
Interest-bearing deposits at banks						29,294						400						5.50						30,647						419						5.49
Trading account						99						1						3.47						105						1						3.42
Investment securities (b):
U.S. Treasury and federal agencies						25,809						220						3.43						24,625						191						3.11
Obligations of states and political subdivisions						2,443						23						3.81						2,489						23						3.77
Other						1,443						23						6.47						1,473						20						5.54
Total investment securities						29,695						266						3.61						28,587						234						3.30
Total earning assets						193,676						2,802						5.82						193,135						2,757						5.74
Allowance for credit losses						(2,199)																		(2,156)
Cash and due from banks						1,754																		1,687
Other assets						18,750																		18,812
Total assets						$	211,981																	$	211,478
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and interest-checking deposits						$	95,955					$	618					2.59		%				$	94,867					$	615					2.61		%
Time deposits						19,802						217						4.41						20,583						225						4.41
Total interest-bearing deposits						115,757						835						2.90						115,450						840						2.93
Short-term borrowings						4,962						69						5.62						6,228						84						5.42
Long-term borrowings						11,490						167						5.83						9,773						141						5.81
Total interest-bearing liabilities						132,209						1,071						3.26						131,451						1,065						3.26
Noninterest-bearing deposits						47,734																		48,615
Other liabilities						4,293																		4,393
Total liabilities						184,236																		184,459
Shareholders’ equity						27,745																		27,019
Total liabilities and shareholders’ equity						$	211,981																	$	211,478
Net interest spread																		2.56																		2.48
Contribution of interest-free funds																		1.03																		1.04
Net interest income/margin on earning assets												$	1,731					3.59		%										$	1,692					3.52		%

____________________________________________

*(a)*Includes nonaccrual loans.

*(b)*Includes available-for-sale securities at amortized cost.

- 47 -

AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES (continued)

						Six Months Ended
						June 30, 2024																		June 30, 2023
(Dollars in millions)						Average Balance						Interest						Average Rate						Average Balance						Interest						Average Rate
Assets
Earning assets:
Loans and leases, net of unearned discount (a):
Commercial and industrial						$	57,486					$	2,005					7.01		%				$	53,531					$	1,717					6.47		%
Commercial real estate						32,077						1,032						6.37						35,089						1,082						6.14
Residential real estate						23,071						496						4.30						23,775						479						4.03
Consumer						21,558						705						6.58						20,388						585						5.77
Total loans and leases, net						134,192						4,238						6.35						132,783						3,863						5.87
Interest-bearing deposits at banks						29,971						819						5.50						23,963						579						4.89
Trading account						102						2						3.45						136						2						2.50
Investment securities (b):
U.S. Treasury and federal agencies						25,217						411						3.28						24,215						346						2.88
Obligations of states and political subdivisions						2,466						46						3.79						2,562						48						3.73
Other						1,458						43						6.00						1,349						33						4.62
Total investment securities						29,141						500						3.46						28,126						427						3.04
Total earning assets						193,406						5,559						5.78						185,008						4,871						5.31
Allowance for credit losses						(2,178)																		(1,962)
Cash and due from banks						1,721																		1,849
Other assets						18,780																		18,597
Total assets						$	211,729																	$	203,492
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and interest-checking deposits						$	95,411					$	1,233					2.60		%				$	87,629					$	646					1.49		%
Time deposits						20,192						442						4.41						13,832						239						3.49
Total interest-bearing deposits						115,603						1,675						2.91						101,461						885						1.76
Short-term borrowings						5,595						153						5.51						6,273						154						4.94
Long-term borrowings						10,631						308						5.82						7,017						187						5.36
Total interest-bearing liabilities						131,829						2,136						3.26						114,751						1,226						2.15
Noninterest-bearing deposits						48,175																		59,001
Other liabilities						4,343																		4,208
Total liabilities						184,347																		177,960
Shareholders’ equity						27,382																		25,532
Total liabilities and shareholders’ equity						$	211,729																	$	203,492
Net interest spread																		2.52																		3.16
Contribution of interest-free funds																		1.04																		.81
Net interest income/margin on earning assets												$	3,423					3.56		%										$	3,645					3.97		%

____________________________________________

*(a)*Includes nonaccrual loans.

*(b)*Includes available-for-sale securities at amortized cost.

Expressed on a taxable-equivalent basis net interest income was $1.73 billion in the second quarter of 2024, compared with $1.69 billion in the first quarter of 2024. The increase in taxable-equivalent net interest income in the recent quarter reflects a 7 basis-point expansion of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, from the first quarter of 2024 to 3.59% in the recent quarter. That expansion largely reflects the deployment of cash to new loan originations and purchases of investment securities that generated higher yields than earning assets that have matured. The cost of interest-bearing liabilities has remained flat as compared with the first quarter of 2024, reflecting a shift in deposit mix from higher cost brokered deposits to lower cost customer savings and interest-checking deposits. That benefit was partially offset by higher balances of average borrowings. The Company continues to adjust its funding sources to include borrowings and brokered deposits in consideration of the competitive landscape for customer deposits. Average borrowings

- 48 -

collectively rose $451 million or 3%, while average brokered deposits declined $1.2 billion or 9% when comparing the recent quarter with the first quarter of 2024.

Taxable-equivalent net interest income in the first six months of 2024 was $3.42 billion, down from $3.64 billion in the corresponding 2023 period. The decrease reflected a 41 basis-point narrowing of the net interest margin to 3.56% in the 2024 period from 3.97% in the year-earlier period. An increase in average interest-bearing liabilities in the first six months of 2024 as compared with the first six months of 2023 reflected a shift in customer deposits toward higher cost interest-bearing products, including time deposits, and higher average brokered deposits and borrowings. Average interest-bearing deposits rose $14.1 billion or 14% in the first six months of 2024 as compared with the first six months of 2023 and included an increase in average brokered deposits of $3.3 billion or 35%. Average borrowings rose $2.9 billion or 22% when comparing the first six months of 2024 to the same period in 2023. The increase in average earning assets in the first six months of 2024 reflects higher average deposits at the FRB of New York, loan growth and purchases of investment securities.

Lending Activities

The Company's lending activities in 2023 and for the first six months of 2024 reflect its execution of various strategies to reduce its relative concentration of commercial real estate loans. The following table summarizes average loans and leases for the three-month and six-month periods ended June 30, 2024 and percentage changes in the major components of the portfolio.

AVERAGE LOANS AND LEASES

									Percent Change from												Percent Change from
			Three Months Ended						Three Months Ended						Six Months Ended						Six Months Ended
(Dollars in millions)			June 30, 2024						March 31, 2024						June 30, 2024						June 30, 2023
Commercial and industrial			$	58,152					2		%				$	57,486					7		%
Commercial real estate			31,458						-4						32,077						-9
Residential real estate			23,006						-1						23,071						-3
Consumer:
Recreational finance			10,950						6						10,628						16
Automobile			4,394						5						4,286						-1
Home equity lines and loans			4,558						-1						4,578						-6
Other			2,070						—						2,066						1
Total consumer			21,972						4						21,558						6
Total			$	134,588					1		%				$	134,192					1		%

Average loans and leases totaled $134.6 billion in the second quarter of 2024, up $792 million or 1% from the first quarter of 2024.

• Average commercial and industrial loans and leases were $58.2 billion in the recent quarter, up $1.3 billion from the first quarter of 2024, reflecting higher levels of lending across most industry types.

• Commercial real estate loans averaged $31.5 billion in the second quarter of 2024, down $1.2 billion as compared with the first quarter of 2024, reflecting decreases of $676 million and $562 million of average permanent and construction commercial real estate loans, respectively.

• Largely reflecting customer payments on loans held for investment, average residential real estate loans decreased $130 million to $23.0 billion in the second quarter of 2024 as compared with the first quarter of 2024.

• Average consumer loans in the second quarter of 2024 increased $829 million from the first quarter of 2024 to $22.0 billion. That growth reflects an increase in average balances in recreational finance loans and automobile loans of $644 million and $217 million, respectively.

- 49 -

In the first six months of 2024, average loans and leases totaled $134.2 billion, up 1%, from $132.8 billion in the corresponding 2023 period.

• Average commercial and industrial loans and leases in the first half of 2024 increased $4.0 billion from the first half of 2023, reflecting growth in most industries, predominantly financial and insurance and motor vehicle and recreational finance dealers.

• Average commercial real estate loans declined $3.0 billion in the first half of 2024 as compared with the corresponding 2023 period reflecting decreases of $2.1 billion in average permanent commercial real estate loans and $962 million in average construction loans.

• Average residential real estate loans decreased $704 million in the six months ended June 30, 2024 from the first half of 2023. That decrease was largely attributable to customer payments on loans held for investment.

• Average consumer loans in the first half of 2024 increased $1.2 billion from the first half of 2023. That growth reflected higher average balances of $1.5 billion of recreational finance loans, partially offset by a decline of $295 million in the average balance of home equity loans and lines of credit.

Investing Activities

The investment securities portfolio averaged $29.7 billion in the second quarter of 2024, up $1.1 billion from the first quarter of 2024. The higher average balance in the recent quarter when compared with the first quarter of 2024 reflects the purchase of $3.1 billion of U.S. Treasury securities and government issued or guaranteed commercial and residential mortgage-backed securities in the recent quarter. In the first six months of 2024 and 2023, investment securities averaged $29.1 billion and $28.1 billion, respectively. The rise in average balances in the first half of 2024 as compared with the first half of 2023 reflects purchases of U.S Treasury securities and government issued or guaranteed commercial and residential mortgage-backed securities of $7.2 billion during the first half of 2024. The Company sold $71 million of non-agency investment securities from its available-for-sale portfolio during the first half of 2024. There were no significant sales of investment securities during the six months ended June 30, 2023. The Company routinely increases and decreases its holdings of capital stock of the FHLB of New York and the FRB of New York based on amounts of outstanding borrowings and available lines of credit with those entities.

The investment securities portfolio is largely comprised of government issued or guaranteed commercial and residential mortgage-backed securities and U.S. Treasury securities, but also includes municipal and other securities. When purchasing investment securities, the Company considers its liquidity position and its overall interest rate risk profile as well as the adequacy of expected returns relative to risks assumed, including prepayments. The Company may occasionally sell investment securities as a result of movements in interest rates and spreads, changes in liquidity needs, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio in connection with a business combination. The amounts of investment securities held by the Company are influenced by such factors as available yield in comparison with alternative investments, demand for loans, which generally yield more than investment securities, ongoing repayments, the levels of deposits, and management of liquidity and balance sheet size and resulting capital ratios.

The Company regularly reviews its debt investment securities for declines in value below amortized cost that might be indicative of credit-related losses. In light of such reviews, there were no credit-related losses on debt investment securities recognized in either of the six months ended June 30, 2024 and 2023. A further discussion of fair values of investment securities is included herein under the heading "Capital." Additional information about the investment securities portfolio is included in notes 3 and 13 of Notes to Financial Statements.

Other earning assets include interest-bearing deposits at banks, trading account assets, federal funds sold and agreements to resell securities. Those other earning assets in the aggregate averaged $29.4 billion in the recently completed quarter, compared with $30.8 billion during the three months ended March 31, 2024, and $30.1 billion in the six months ended June 30, 2024, compared with $24.1 billion in the six months ended June 30, 2023. The amounts of other earning assets at those respective dates were predominantly comprised of deposits held at the FRB of New York. In general, the levels of those deposits often fluctuate due to changes in deposits of retail and

- 50 -

commercial customers, trust-related deposits, brokered deposits and additions to or maturities of investment securities or borrowings.

Funding Activities - Deposits

The most significant source of funding for the Company is core deposits. The Company considers noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and time deposits of $250,000 or less as core deposits. The Company’s branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Average core deposits represented 76% of average earning assets for each of the quarters ended June 30, 2024 and March 31, 2024, and 76% and 81% for the six months ended June 30, 2024 and 2023, respectively. The Company also includes brokered deposits as a component of its wholesale funding strategy. Depending on market conditions, including demand by customers and other investors, and the cost of funds available from alternative sources, the Company may change the amount or composition of brokered deposits in the future. The following table provides an analysis of quarterly changes in the components of average deposits.

AVERAGE DEPOSITS

									Percent Change from												Percent Change from
			Three Months Ended						Three Months Ended						Six Months Ended						Six Months Ended
(Dollars in millions)			June 30, 2024						March 31, 2024						June 30, 2024						June 30, 2023
Noninterest-bearing deposits			$	47,734					-2		%				$	48,175					-18		%
Savings and interest-checking deposits			87,762						1						87,300						4
Time deposits of $250,000 or less			12,407						4						12,196						92
Total core deposits			$	147,903					—		%				$	147,671					-1		%
Time deposits greater than $250,000			$	3,569					5		%				$	3,486					100		%
Brokered deposits			12,019						-9						12,621						35
Total deposits			$	163,491					—		%				$	163,778					2		%

Deposits averaged $163.5 billion in the recent quarter, a $574 million decrease from $164.1 billion in the first quarter of 2024.

• Average core deposits increased modestly from the first quarter of 2024 reflecting a stabilization of customer deposits in the higher rate environment.

• The decrease in average brokered deposits in the recent quarter reflects a shift in the Company's wholesale funding strategy. Average brokered time deposits decreased $1.4 billion to $3.8 billion in the recent quarter from $5.2 billion in the first quarter of 2024. The rates paid on those deposits averaged 4.99% and 5.01%, during the three months ended June 30, 2024 and March 31, 2024, respectively. Average brokered savings and interest-bearing transaction accounts increased $163 million to $8.2 billion in the recent quarter from $8.0 billion in the first quarter of 2024. The rates paid on those deposits averaged 4.75% and 4.78%, during the three months ended June 30, 2024 and March 31, 2024, respectively. The rate paid on total non-brokered interest-bearing deposits was 2.67% in each of the first and second quarters of 2024 reflecting a stabilization in deposit product pricing.

Average deposits increased $3.3 billion in the first six months of 2024 from $160.5 billion in the first half of 2023.

• Average core deposits decreased $1.7 billion in the six months ended June 30, 2024 as compared with the similar prior-year period reflecting the impact of an elevated interest rate environment that influenced customers to seek higher rate alternatives, including a shift of funds to commercial sweep products and time deposits greater than $250,000.

• The increase in average brokered deposits in the six months ended June 30, 2024 as compared with the first six months of 2023 reflects the Company's liquidity management and funding strategies during a period of rising interest rates, partially offset by the maturity of some brokered time deposits in the recent six-month period. Average brokered savings and interest-bearing transaction accounts increased $4.5 billion to $8.1 billion in the six months ended June 30, 2024 from $3.6 billion in the six months ended

- 51 -

June 30, 2023 and the rates paid on those deposits averaged 4.77% and 3.72%, respectively. Average brokered time deposits decreased $1.2 billion to $4.5 billion in the first half of 2024 from $5.7 billion in the six months ended June 30, 2023 and the rates paid on those deposits averaged 5.01% and 4.90%, respectively. The rate paid on total non-brokered interest-bearing deposits was 2.67% in the first six months of 2024, compared with 1.48% in the similar 2023 period. That increase in the rate on non-brokered interest-bearing deposits reflected repricing on certain deposit products as customers sought higher yields in an elevated interest rate environment.

The accompanying table summarizes the components of average total deposits by segment for the three months ended June 30, 2024 and March 31, 2024 and the six months ended June 30, 2024 and 2023.

AVERAGE DEPOSITS BY SEGMENT

(Dollars in millions)						Commercial Bank						Retail Bank						Institutional Services and Wealth Management						All Other						Total
Three Months Ended June 30, 2024
Noninterest-bearing deposits						$	12,523					$	25,150					$	9,340					$	721					$	47,734
Savings and interest-checking deposits						30,003						51,655						7,895						6,402						95,955
Time deposits						426						15,501						43						3,832						19,802
Total						$	42,952					$	92,306					$	17,278					$	10,955					$	163,491
Three Months Ended March 31, 2024
Noninterest-bearing deposits						$	13,459					$	25,380					$	9,081					$	695					$	48,615
Savings and interest-checking deposits						29,721						51,274						7,131						6,741						94,867
Time deposits						353						14,995						37						5,198						20,583
Total						$	43,533					$	91,649					$	16,249					$	12,634					$	164,065
Six Months Ended June 30, 2024
Noninterest-bearing deposits						$	12,991					$	25,265					$	9,211					$	708					$	48,175
Savings and interest-checking deposits						29,862						51,464						7,513						6,572						95,411
Time deposits						389						15,248						40						4,515						20,192
Total						$	43,242					$	91,977					$	16,764					$	11,795					$	163,778
Six Months Ended June 30, 2023
Noninterest-bearing deposits						$	18,716					$	29,760					$	9,818					$	707					$	59,001
Savings and interest-checking deposits						22,769						53,913						7,490						3,457						87,629
Time deposits						321						7,741						15						5,755						13,832
Total						$	41,806					$	91,414					$	17,323					$	9,919					$	160,462

- 52 -

Funding Activities - Borrowings

The following table summarizes the average balances utilized from the Company's short-term and long-term borrowing facilities and note programs.

AVERAGE BORROWINGS

						Three Months Ended												Six Months Ended
(Dollars in millions)						June 30, 2024						March 31, 2024						June 30, 2024						June 30, 2023
Short-term borrowings:
Federal funds purchased and repurchase agreements						$	292					$	307					$	299					$	416
FHLB advances						4,670						5,921						5,296						5,857
Total short-term borrowings						$	4,962					$	6,228					$	5,595					$	6,273
Long-term borrowings:
Senior notes						$	7,088					$	6,418					$	6,753					$	5,485
FHLB advances						2,005						1,323						1,664						5
Subordinated notes						976						977						976						980
Junior subordinated debentures						541						540						541						537
Asset-backed notes						870						505						687						—
Other						10						10						10						10
Total long-term borrowings						11,490						9,773						10,631						7,017
Total borrowings						$	16,452					$	16,001					$	16,226					$	13,290

The Company uses borrowing capacity from banks, the FHLBs, the FRB of New York and others as sources of funding. Short-term borrowings represent arrangements that at the time they were entered into had a contractual maturity of one year or less. The lower levels of short-term borrowings in the second quarter of 2024 as compared with the first quarter of 2024 as well as for the six months ended June 30, 2024 as compared with the similar 2023 period reflect the Company's management of liquidity.

Reflecting new issuances and advances of long-term borrowing arrangements of $3.4 billion during the first quarter of 2024, long-term borrowings averaged $11.5 billion and $9.8 billion in the three-month periods ended June 30, 2024 and March 31, 2024, respectively. Long-term borrowings averaged $10.6 billion and $7.0 billion for the six-month periods ended June 30, 2024 and 2023, respectively. The increased usage of borrowing facilities reflects the Company's strategies to diversify its wholesale funding options to provide long-term funding stabilization and prepare for proposed regulations enumerating certain long-term debt requirements as described in Part I, Item 1 of M&T's 2023 Annual Report.

Additional information regarding borrowings is provided in notes 5 and 12 of Notes to Financial Statements.

Net Interest Margin

Taxable-equivalent net interest income can be impacted by changes in the composition of the Company's earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads. Net interest spread, or the difference between the yield on earning assets and the rate paid on interest-bearing liabilities, was 2.56% in the recent quarter, up 8 basis points from 2.48% in the first quarter of 2024. The increase in the net interest spread from the first quarter of 2024 reflected increased yields on average earning assets and stability of the cost of interest-bearing liabilities. The yield on earning assets during the second quarter of 2024 was 5.82%, up 8 basis points from 5.74% in the first quarter of 2024 largely due to a 31 basis-point increase in yield on investment securities and a 6 basis-point increase in yield on loans. The rate paid on interest-bearing liabilities was 3.26%, unchanged from the first quarter of 2024. For the first six months of 2024, the net interest spread was 2.52%, down from 3.16% in the corresponding year-earlier period. Higher rates paid on interest-bearing deposits and other liabilities, which outpaced higher yields earned on loans and other earning assets, largely contributed to the decline in net interest spread.

- 53 -

Net interest-free funds consist largely of noninterest-bearing demand deposits and shareholders’ equity, partially offset by bank owned life insurance and non-earning assets, including goodwill and core deposit and other intangible assets. Net interest-free funds averaged $61.5 billion in the second quarter of 2024, relatively unchanged from $61.7 billion in the first quarter of 2024. Net interest-free funds averaged $61.6 billion and $70.3 billion in the first six months of 2024 and 2023, respectively. Noninterest-bearing deposits averaged $47.7 billion in the second quarter of 2024, compared with $48.6 billion in the first quarter of 2024, and $48.2 billion in the first half of 2024 as compared with $59.0 billion in the first half of 2023. The declines in average noninterest-bearing deposits in the respective comparative periods reflect customer use of off-balance sheet investment products and a shift in deposits to interest-bearing accounts in an environment of elevated interest rates. The contribution of net interest-free funds to net interest margin was 1.03% in the second quarter of 2024, compared with 1.04% in the first quarter of 2024. In the first six months of 2024 and 2023, the contribution of net interest-free funds to net interest margin was 1.04% and .81%, respectively. The increased contribution of net interest-free funds to net interest margin in the first six months of 2024 as compared with the first six months of 2023 reflects higher rates paid on interest-bearing liabilities used to value net interest-free funds.

Reflecting the changes to the net interest spread and the contribution of net interest-free funds as described herein, the Company’s net interest margin was 3.59% in the second quarter of 2024, compared with 3.52% in the first quarter of 2024. During the first six months of 2024 and 2023, the net interest margin was 3.56% and 3.97%, respectively. That 41 basis-point narrowing of the net interest margin reflects an increase in the rates paid on the Company's sources of funding which has outpaced the rise in yields on earning assets. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in changes to spreads, could impact the Company’s net interest income and net interest margin.

Management assesses the potential impact of future changes in interest rates and spreads by projecting net interest income under several interest rate scenarios. In managing interest rate risk, the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its earning assets and interest-bearing liabilities. Under the terms of those interest rate swap agreements, the Company received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Periodic settlement amounts arising from these agreements are reflected in either the yields on earning assets or the rates paid on interest-bearing liabilities. The Company enters into forward-starting interest rate swap agreements predominantly to hedge interest rate exposures expected in future periods. The following table summarizes information about interest rate swap agreements entered into for interest rate risk management purposes at June 30, 2024 and December 31, 2023.

- 54 -

INTEREST RATE SWAP AGREEMENTS - DESIGNATED AS HEDGES

															Notional Amount						Weighted-Average Maturity (In years)						Weighted- Average Rate
(Dollars in millions)															Fixed						Variable
June 30, 2024
Fair value hedges:
Fixed rate long-term borrowings:
Active															$	2,000					5.9						3.11		%				5.72		%
Forward-starting															1,850						5.4						3.87						5.33
Total fair value hedges															3,850						5.6
Cash flow hedges:
Variable rate commercial real estate loans and commercial and industrial loans:
Active															18,405						1.3						3.18						5.34
Forward-starting															7,500						2.7						3.97						5.33
Total cash flow hedges															25,905						1.7
Total															$	29,755					2.2
December 31, 2023
Fair value hedges:
Fixed rate long-term borrowings:
Active															$	2,000					6.4						3.11		%				5.74		%
Forward-starting															1,000						4.8						4.13						5.37
Total fair value hedges															3,000						5.8
Cash flow hedges:
Variable rate commercial real estate loans:
Active															14,977						1.2						3.31						5.35
Forward-starting															9,000						2.5						3.67						5.37
Total cash flow hedges															23,977						1.7
Total															$	26,977					2.2

Information regarding the fair value of interest rate swap agreements is presented in note 11 of Notes to Financial Statements. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes (excluding forward-starting interest rate swap agreements not in effect during the quarter), the related effect on net interest income and margin and the weighted-average interest rates paid or received on those swap agreements are presented in the table that follows.

- 55 -

INTEREST RATE SWAP AGREEMENTS - EFFECT ON NET INTEREST INCOME

			Three Months Ended
			June 30, 2024												March 31, 2024
(Dollars in millions)			Amount						Rate (a)						Amount						Rate (a)
Increase (decrease) in:
Interest income			$	(99)					-.21		%				$	(87)					-.18		%
Interest expense			14						.04						13						.04
Net interest income/margin			$	(113)					-.23		%				$	(100)					-.21		%
Average notional amount (b)			$	20,589											$	19,202
Rate received (c)									3.21		%										3.32		%
Rate paid (c)									5.38												5.38

			Six Months Ended June 30,
			2024												2023
(Dollars in millions)			Amount						Rate (a)						Amount						Rate (a)
Increase (decrease) in:
Interest income			$	(186)					-.19		%				$	(108)					-.12		%
Interest expense			27						.04						24						.04
Net interest income/margin			$	(213)					-.22		%				$	(132)					-.14		%
Average notional amount (b)			$	19,896											$	12,054
Rate received (c)									3.26		%										2.92		%
Rate paid (c)									5.38												5.10

___________________________________________

*(a)*Computed as an annualized percentage of average earning assets or interest-bearing liabilities.

*(b)*Excludes forward-starting interest rate swap agreements not in effect during the period.

*(c)*Weighted-average rate paid or received on interest rate swap agreements in effect during the period.

Provision for Credit Losses

A provision for credit losses is recorded to adjust the level of the allowance to reflect expected credit losses that are based on economic forecasts as of each reporting date. A provision for credit losses of $150 million was recorded in the second quarter of 2024, compared with $200 million in the first quarter of 2024. The lower provision for credit losses in the recent quarter as compared with the first quarter of 2024 reflects lower commercial real estate loans, including criticized loans, and modest improvement in forecasted real estate prices, partially offset by growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios. For the six months ended June 30, 2024 and 2023, the Company recorded a provision for credit losses of $350 million and $270 million, respectively. The higher provision for credit losses in the most recent two quarters as compared with the similar 2023 period reflects declines in commercial real estate values and higher interest rates contributing to a deterioration in the performance of loans to commercial borrowers, including nonautomotive dealers and healthcare facilities, as well as growth in certain sectors of M&T's commercial and industrial and consumer loan portfolios.

- 56 -

A summary of net charge-offs by loan type and as an annualized percentage of such average loans is presented in the table that follows.

NET CHARGE-OFF (RECOVERY) INFORMATION

			Three Months Ended
			June 30, 2024																								March 31, 2024
(Dollars in millions)			Net Charge-Offs (Recoveries)						Annualized Percentage of Average Loans																		Net Charge-Offs (Recoveries)						Annualized Percentage of Average Loans
Commercial and industrial			$	70					.48		%																$	73					.51		%
Real estate:
Commercial			26						.43																		8						.13
Residential builder and developer			—						-.06																		—						.03
Other commercial construction			—						—																		11						.69
Residential			—						-.01																		—						-.01
Residential - limited documentation			—						—																		—						—
Consumer:
Home equity lines and loans			—						-.05																		—						.02
Recreational finance			16						.59																		21						.80
Automobile			2						.25																		5						.46
Other			23						4.41																		20						4.03
Total			$	137					.41		%																$	138					.42		%

			Six Months Ended June 30,
			2024																		2023
(Dollars in millions)			Net Charge-Offs (Recoveries)						Annualized Percentage of Average Loans																		Net Charge-Offs (Recoveries)						Annualized Percentage of Average Loans
Commercial and industrial			$	143					.50		%																$	18					.07		%
Real estate:
Commercial			34						.28																		125						.94
Residential builder and developer			—						.04																		2						.25
Other commercial construction			11						.35																		(2)						-.05
Residential			—						-.01																		(1)						-.01
Residential - limited documentation			—						—																		—						.03
Consumer:
Home equity lines and loans			—						-.01																		—						—
Recreational finance			37						.70																		21						.47
Automobile			7						.35																		3						.13
Other			43						4.23																		31						3.10
Total			$	275					.41		%																$	197					.30		%

- 57 -

Asset Quality

A summary of nonperforming assets and certain past due loan data and credit quality ratios is presented in the accompanying table.

NONPERFORMING ASSET AND PAST DUE LOAN DATA

(Dollars in millions)			June 30, 2024						March 31, 2024						December 31, 2023						June 30, 2023
Nonaccrual loans			$	2,024					$	2,302					$	2,166					$	2,435
Real estate and other foreclosed assets			33						38						39						43
Total nonperforming assets			$	2,057					$	2,340					$	2,205					$	2,478
Accruing loans past due 90 days or more (a)			$	233					$	297					$	339					$	380
Government-guaranteed loans included in totals above:
Nonaccrual loans			$	64					$	62					$	53					$	40
Accruing loans past due 90 days or more (a)			215						244						298						294
Loans 30-89 days past due			1,387						1,410						1,724						1,656
Nonaccrual loans to total net loans and leases			1.50		%				1.71		%				1.62		%				1.83		%
Nonperforming assets to total net loans and leases and real estate and other foreclosed assets			1.52						1.73						1.64						1.86
Accruing loans past due 90 days or more to total net loans and leases			.17						.22						.25						.29
Loans 30-89 days past due to total net loans and leases			1.03						1.04						1.29						1.24

_______________________________________________________________

*(a)*Predominantly government-guaranteed residential real estate loans.

The $278 million decline in nonaccrual loans from March 31, 2024 to June 30, 2024 was mainly attributable to lower commercial real estate and commercial and industrial nonaccrual loans of $213 million and $59 million, respectively. As compared with December 31, 2023, the $142 million decline in nonaccrual loans at June 30, 2024 reflects a $257 million reduction in commercial real estate nonaccrual loans, partially offset by a $135 million increase in commercial and industrial nonaccrual loans. At June 30, 2024, approximately 57% of nonaccrual commercial and industrial and commercial real estate loans were considered current with respect to their payment status.

Government-guaranteed loans designated as accruing loans past due 90 days or more included one-to-four family residential mortgage loans serviced by the Company that were repurchased to reduce associated servicing costs, including a requirement to advance principal and interest payments that had not been received from individual mortgagors. Despite the loans being purchased by the Company, the insurance or guarantee by the applicable government-related entity remains in force. The outstanding principal balances of the repurchased loans included in the amounts noted herein that are guaranteed by government-related entities totaled $170 million at June 30, 2024, $195 million at March 31, 2024, $228 million at December 31, 2023 and $223 million at June 30, 2023. Accruing loans past due 90 days or more not guaranteed by government-related entities were loans considered to be with creditworthy borrowers that were in the process of collection or renewal.

Approximately 74% of loans 30 to 89 days past due were less than 60 days delinquent at June 30, 2024, compared with 73% at each of March 31, 2024 and December 31, 2023. Information about past due and nonaccrual loans at June 30, 2024 and December 31, 2023 is also included in note 4 of Notes to Financial Statements.

During the normal course of business, the Company modifies loans to maximize recovery efforts. The types of modifications that the Company grants typically include principal deferrals and interest rate reductions but may also include other types of modifications. The Company may offer such modified terms to borrowers experiencing financial difficulty. Such modified loans may be considered nonaccrual if the Company does not expect to collect the contractual cash flows owed under the loan agreement. Information about modifications of loans to borrowers experiencing financial difficulty is included in note 4 of Notes to Financial Statements.

The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. Loans with a lower expectation of default are assigned one of ten possible “pass” loan grades while specific loans determined to have an elevated level of credit risk are designated as “criticized.” A

- 58 -

criticized loan may be designated as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more.

Line of business personnel in different geographic locations with support from and review by the Company’s credit risk personnel review and reassign loan grades based on their detailed knowledge of individual borrowers and their judgment of the impact on such borrowers resulting from changing conditions in their respective regions. The Company’s policy is that, at least annually, updated financial information is obtained from commercial borrowers associated with pass grade loans and additional analysis performed. On a quarterly basis, the Company’s centralized credit risk department personnel reviews all criticized commercial and industrial loans and commercial real estate loans greater than $5 million to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. For criticized nonaccrual loans, additional meetings are held with loan officers and their managers, workout specialists and senior management to discuss each of the relationships. In analyzing criticized loans, borrower-specific information is reviewed, including operating results, future cash flows, recent developments and the borrower’s outlook, and other pertinent data. The timing and extent of potential losses, considering collateral valuation and other factors, and the Company’s potential courses of action are contemplated.

Targeted loan reviews have periodically been performed over segments of loan portfolios that are experiencing heightened credit risk due to current or anticipated economic conditions. The intention of such reviews is to identify trends across such portfolios and inform portfolio risk limits and loss mitigation strategies. The business climate in the first half of 2024 has continued to be subjected to inflationary pressures and elevated interest rates. These conditions have impacted many borrowers, particularly those with investor-owned commercial real estate loans in the hotel, office, retail, multifamily and health services sectors, including construction-related financing, and commercial and industrial loans to nonautomotive dealers and to the manufacturing and transportation industries. In 2023 and 2024, the Company completed targeted loan reviews covering the majority of its investor-owned commercial real estate portfolio, inclusive of construction loans, with a focus on criticized loans and loans with maturities in the next twelve months. The primary source of repayment of these loans is typically tenant lease payments to the investor/borrower. Elevated vacancies and higher interest rates have contributed to lower current and anticipated future debt service coverage ratios, which has and could continue to influence the ability of borrowers to make existing loan payments. Lower debt service coverage ratios and reduced commercial real estate values also impact the ability of borrowers to refinance their obligations at loan maturity. As a result, criticized investor-owned commercial real estate loans have remained elevated at $7.6 billion or 26% of such loans at June 30, 2024, $8.5 billion or 26% at March 31, 2024 and $8.8 billion or 27% of such loans at December 31, 2023. Investor-owned commercial real estate loans comprised 63%, 66% and 70% of total criticized loans at June 30, 2024, March 31, 2024 and December 31, 2023, respectively. The weighted-average LTV ratios for investor-owned commercial real estate loans was approximately 56% at each of June 30, 2024, March 31, 2024 and December 31, 2023. Criticized loans secured by investor-owned commercial real estate had a weighted-average LTV ratio of approximately 62% at each of June 30, 2024 and March 31, 2024, compared with 61% at December 31, 2023.

The Company monitors its concentration of commercial real estate lending as a percentage of its Tier 1 capital plus its allowable allowance for credit losses, consistent with a metric utilized to differentiate such concentrations amongst regulated financial institutions. This metric, as prescribed in supervisory guidance, excludes loans secured by commercial real estate considered to be owner-occupied, but includes certain other loans, such as loans to real estate investment trusts, that are classified as commercial and industrial loans. The Company's commercial real estate loan concentration approximated 151% of Tier 1 capital plus its allowable allowance for credit losses at June 30, 2024, compared with 176% at March 31, 2024 and 183% at December 31, 2023. The Company has intentionally reduced its relative concentration of investor-owned commercial real estate loans throughout 2023 and the first half of 2024.

- 59 -

The accompanying tables summarize the outstanding balances, and associated criticized balances, of commercial and industrial loans and leases by industry and commercial real estate loans by property type, respectively, at June 30, 2024 and December 31, 2023.

CRITICIZED COMMERCIAL AND INDUSTRIAL LOANS

			June 30, 2024																								December 31, 2023
(Dollars in millions)			Outstanding						Criticized Accrual						Criticized Nonaccrual						Total Criticized						Outstanding						Criticized Accrual						Criticized Nonaccrual						Total Criticized
Commercial and industrial excluding owner-occupied real estate by industry:
Financial and insurance			$	11,129					$	129					$	1					$	130					$	10,679					$	346					$	3					$	349
Services			7,487						296						115						411						6,715						295						100						395
Motor vehicle and recreational finance dealers			6,454						694						120						814						6,242						164						51						215
Manufacturing			6,313						511						101						612						5,981						549						65						614
Wholesale			4,090						277						31						308						3,803						180						45						225
Transportation, communications, utilities			3,499						288						69						357						3,342						195						71						266
Retail			3,048						87						31						118						2,727						102						35						137
Construction			2,301						158						63						221						2,092						173						62						235
Health services			1,937						230						36						266						1,950						297						28						325
Real estate investors			1,566						159						4						163						1,684						189						4						193
Other			1,517						101						48						149						1,889						123						50						173
Total commercial and industrial excluding owner-occupied real estate			$	49,341					$	2,930					$	619					$	3,549					$	47,104					$	2,613					$	514					$	3,127
Owner-occupied real estate by industry:
Services			$	2,211					$	129					$	35					$	164					$	2,162					$	154					$	51					$	205
Motor vehicle and recreational finance dealers			1,957						50						12						62						1,867						10						7						17
Retail			1,614						127						12						139						1,541						107						13						120
Health services			1,339						285						66						351						656						55						26						81
Wholesale			919						31						3						34						940						28						2						30
Manufacturing			813						52						25						77						842						64						24						88
Real estate investors			771						37						15						52						818						26						12						38
Other			1,062						52						18						70						1,080						32						21						53
Total owner-occupied real estate			10,686						763						186						949						9,906						476						156						632
Total			$	60,027					$	3,693					$	805					$	4,498					$	57,010					$	3,089					$	670					$	3,759

CRITICIZED COMMERCIAL REAL ESTATE LOANS

			June 30, 2024																								December 31, 2023
(Dollars in millions)			Outstanding						Criticized Accrual						Criticized Nonaccrual						Total Criticized						Outstanding						Criticized Accrual						Criticized Nonaccrual						Total Criticized
Permanent finance by property type:
Apartments/Multifamily			$	5,824					$	882					$	108					$	990					$	6,165					$	1,184					$	115					$	1,299
Retail/Service			5,257						774						163						937						5,912						1,075						227						1,302
Office			4,484						1,070						145						1,215						4,727						879						185						1,064
Health services			2,752						1,100						109						1,209						3,615						1,364						117						1,481
Hotel			2,279						430						165						595						2,510						496						210						706
Industrial/Warehouse			1,896						172						16						188						2,034						224						13						237
Other			274						72						1						73						314						28						2						30
Total permanent			22,766						4,500						707						5,207						25,277						5,250						869						6,119
Construction/Development			6,766						2,270						79						2,349						7,726						2,527						174						2,701
Total			$	29,532					$	6,770					$	786					$	7,556					$	33,003					$	7,777					$	1,043					$	8,820

- 60 -

Total criticized commercial and industrial loans and commercial real estate loans were $12.1 billion, $12.9 billion and $12.6 billion at June 30, 2024, March 31, 2024 and December 31, 2023, respectively. Criticized loans represented 13.5% of total commercial and industrial and commercial real estate loans at June 30, 2024, compared with 14.3% at March 31, 2024 and 14.0% at December 31, 2023. At June 30, 2024, March 31, 2024 and December 31, 2023, permanent finance commercial real estate loans comprised 43%, 46% and 49% of total criticized loans, respectively, whereas commercial and industrial loans represented 37%, 34% and 30%, respectively. At each of June 30, 2024 and March 31, 2024 construction loans represented 20% of total criticized loans, compared with 21% at December 31, 2023. Loans to nonautomotive finance dealers and health services companies predominantly contributed to the $739 million increase in commercial and industrial criticized loans from December 31, 2023 to June 30, 2024. The $1.3 billion decline in criticized commercial real estate loans from December 31, 2023 to June 30, 2024 was largely driven by lower criticized loans secured by retail, multifamily, health services and hotel properties, partially offset by a rise in criticized loans secured by office properties.

The Company’s loss identification and estimation techniques with respect to loans secured by residential real estate make reference to loan performance and house price data in specific areas of the country where collateral securing the Company’s residential real estate loans is located. For residential real estate-related loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. That charge-off is based on recent indications of value from external parties that are generally obtained shortly after a loan becomes nonaccrual. Loans to consumers that file for bankruptcy are generally charged-off to estimated net collateral value shortly after the Company is notified of such filings. Limited documentation first lien mortgage loans represent loans secured by residential real estate that at origination typically included some form of limited borrower documentation requirements as compared with more traditional loans. The Company no longer originates limited documentation loans. With respect to junior lien loans, to the extent known by the Company, if a related senior lien loan would be on nonaccrual status because of payment delinquency, even if such senior lien loan was not owned by the Company, the junior lien loan or line that is owned by the Company is placed on nonaccrual status. In monitoring the credit quality of its home equity portfolio for purposes of determining the allowance for credit losses, the Company reviews delinquency and nonaccrual information and considers recent charge-off experience. When evaluating individual home equity loans and lines of credit for charge-off and for purposes of determining the allowance for credit losses, the Company considers the required repayment of any first lien positions related to collateral property. Information about the location of loans secured by residential real estate is presented in the following table.

- 61 -

NONACCRUAL LOANS SECURED BY RESIDENTIAL REAL ESTATE

			June 30, 2024
									Nonaccrual
(Dollars in millions)			Outstanding Balances						Balances						Percent of Outstanding Balances
Residential mortgage loans:
New York			$	6,561					$	86					1.32		%
Mid-Atlantic (a)			6,668						59						.87
New England (b)			5,988						43						.72
Other			2,934						17						.58
Total			$	22,151					$	205					.92		%
Limited documentation first lien mortgage loans:
New York			$	388					$	25					6.55		%
Mid-Atlantic (a)			347						20						5.64
New England (b)			81						7						8.80
Other			36						3						9.20
Total			$	852					$	55					6.50		%
First lien home equity loans and lines of credit:
New York			$	801					$	15					1.81		%
Mid-Atlantic (a)			945						22						2.31
New England (b)			450						5						1.18
Other			16						3						16.58
Total			$	2,212					$	45					2.01		%
Junior lien home equity loans and lines of credit:
New York			$	784					$	14					1.82		%
Mid-Atlantic (a)			939						14						1.53
New England (b)			601						6						.96
Other			25						—						.52
Total			$	2,349					$	34					1.47		%

_______________________________________________________________

*(a)*Includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia and the District of Columbia.

*(b)*Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

Factors that influence the Company’s credit loss experience include overall economic conditions affecting businesses and consumers, generally, but also residential and commercial real estate valuations, in particular, given the size of the Company’s real estate loan portfolios. Commercial real estate valuations can be highly subjective, as they are based upon many assumptions. Such valuations can be significantly affected over relatively short periods of time by changes in business climate, economic conditions, interest rates and, in many cases, the results of operations of businesses and other occupants of the real property. Similarly, residential real estate valuations can be impacted by housing trends, the availability of financing at reasonable interest rates and general economic conditions affecting consumers.

A comparative summary of consumer loans in nonaccrual status by product is presented in the following table.

NONACCRUAL CONSUMER LOANS

(Dollars in millions)			June 30, 2024						December 31, 2023
Home equity lines and loans			$	79					$	81
Recreational finance			25						36
Automobile			11						14
Other			58						52
Total			$	173					$	183

- 62 -

Allowance for Credit Losses

Management determines the allowance for credit losses under accounting guidance that requires estimating the amount of current expected credit losses over the remaining contractual term of the loan and lease portfolio. A description of the methodologies used by the Company to estimate its allowance for credit losses can be found in note 4 of Notes to Financial Statements.

In establishing the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes and also estimates losses for other loans and leases with similar risk characteristics on a collective basis. For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolio by type. At the time of the Company’s analysis regarding the determination of the allowance for credit losses as of June 30, 2024 concerns existed about the lingering impact of elevated levels of inflation experienced in recent years; potential liquidity shortages and tightening credit in the financial services markets; a potential slowing of the economy during the second half of 2024; the volatile nature of global markets and international economic conditions that could impact the U.S. economy; Federal Reserve positioning of monetary policy; downward pressures on commercial real estate values, especially in the office, retail, multifamily and health services sectors, and residential real estate values; higher interest rates and wage pressures impacting commercial borrowers, including nonautomotive finance dealers; and the extent to which borrowers, in particular commercial borrowers, may be negatively affected by general economic conditions.

The Company generally estimates current expected credit losses on loans with similar risk characteristics on a collective basis. To estimate expected losses, the Company utilizes statistically developed models to project principal balances over the remaining contractual lives of the loan portfolios and determine estimated credit losses through a reasonable and supportable forecast period. The Company’s approach for estimating current expected credit losses for loans and leases at each period end reporting date included utilizing macroeconomic assumptions to project losses over a two-year reasonable and supportable forecast period. Subsequent to the forecast period, the Company reverted to longer-term historical loss experience, over a period of one year, to estimate expected credit losses over the remaining contractual life. Forward-looking estimates of certain macroeconomic variables are determined by the M&T Scenario Review Committee, which is comprised of senior management business leaders and economists. The assumptions utilized as of June 30, 2024, March 31, 2024 and December 31, 2023 are presented in the following table and were based on information available at or near the time the Company was preparing its estimate of expected credit losses as of those dates.

ALLOWANCE FOR CREDIT LOSSES MACROECONOMIC ASSUMPTIONS

			June 30, 2024																		March 31, 2024																		December 31, 2023
			Year 1						Year 2						Cumulative						Year 1						Year 2						Cumulative						Year 1						Year 2						Cumulative
National unemployment rate			4.5		%				4.7		%										4.4		%				4.7		%										4.4		%				4.7		%
Real GDP growth rate			1.2						1.9						3.1		%				1.0						1.8						2.8		%				.9						1.9						2.8		%
Commercial real estate price index growth/decline rate			-4.0						4.6						.7						-6.9						5.5						-1.5						-9.1						4.8						-4.5
Home price index growth/ decline rate			-.1						2.1						2.0						-2.0						.4						-1.6						-3.2						-.1						-3.3

In establishing the allowance for credit losses, the Company also considers the impact of portfolio concentrations, imprecision in economic forecasts, geopolitical conditions and other risk factors that influence the loss estimation process. With respect to economic forecasts, the Company assessed the likelihood of alternative economic scenarios during the two-year reasonable and supportable forecast period. Generally, an increase in unemployment rate or a decrease in any of the rate of change in GDP, commercial real estate prices or home prices could have an adverse impact on expected credit losses and may result in an increase to the allowance for credit losses. Forward-looking economic forecasts are subject to inherent imprecision and future events may differ materially from forecasted events. In consideration of such uncertainty, the following alternative economic scenarios were considered to estimate the possible impact on modeled credit losses.

- 63 -

ALLOWANCE FOR CREDIT LOSSES SENSITIVITIES

			June 30, 2024
			Year 1						Year 2						Cumulative
Potential downside economic scenario:
National unemployment rate			6.7		%				7.7		%
Real GDP growth/decline rate			-2.3						1.6						-.7		%
Commercial real estate price index decline rate			-15.5						-2.7						-17.9
Home price index growth/decline rate			-9.3						1.9						-7.6
Potential upside economic scenario:
National unemployment rate			3.3						3.2
Real GDP growth rate			3.6						2.3						6.0
Commercial real estate price index growth rate			1.2						8.3						9.6
Home price index growth rate			4.9						4.1						9.2

(Dollars in millions)			Impact to Modeled Credit Losses Increase (Decrease)
Potential downside economic scenario			$	361
Potential upside economic scenario			(162)

These examples are only a few of the numerous possible economic scenarios that could be utilized in assessing the sensitivity of expected credit losses. The estimated impacts on credit losses in such scenarios pertain only to modeled credit losses and do not include consideration of other factors the Company may evaluate when determining its allowance for credit losses. As a result, it is possible that the Company may, at another point in time, reach different conclusions regarding credit loss estimates. The Company’s process for determining the allowance for credit losses undergoes quarterly and periodic evaluations by independent risk management personnel, which among many other considerations, evaluate the reasonableness of management’s methodology and significant assumptions. Further information about the Company’s methodology to estimate expected credit losses is included in note 4 of Notes to Financial Statements.

Management has assessed that the allowance for credit losses at June 30, 2024 appropriately reflected expected credit losses inherent in the portfolio as of that date. The allowance for credit losses totaled $2.2 billion at each of June 30, 2024 and March 31, 2024, compared with $2.1 billion at December 31, 2023. As a percentage of loans and leases outstanding, the allowance was 1.63% at June 30, 2024, 1.62% at March 31, 2024 and 1.59% at December 31, 2023. The increase in the allowance for credit losses as a percentage of loans and leases outstanding since December 31, 2023 reflects a higher level of credit losses expected on certain commercial borrowers, including nonautomotive dealers, health services facilities and transportation companies. Included in the allocation of the allowance for credit losses were reserves for loans secured by office properties of 4.33% at June 30, 2024 and 4.37% at each of March 31, 2024 and December 31, 2023. The level of the allowance reflects management’s evaluation of the loan and lease portfolio using the methodology and considering the factors as described herein. Should the various economic forecasts and credit factors considered by management in establishing the allowance for credit losses change and should management’s assessment of losses in the loan portfolio also change, the level of the allowance as a percentage of loans could increase or decrease in future periods. The reported level of the allowance reflects management’s evaluation of the loan and lease portfolio as of each respective date. Furthermore, the Company's allowance is general in nature and is available to absorb losses from any loan or lease category.

The ratio of the allowance for credit losses to total nonaccrual loans at June 30, 2024, March 31, 2024 and December 31, 2023 was 109%, 95% and 98%, respectively. Given the Company’s general position as a secured lender and its practice of charging off loan balances when collection is deemed doubtful, that ratio and changes in the ratio are generally not an indicative measure of the adequacy of the Company’s allowance for credit losses, nor does management rely upon that ratio in assessing the adequacy of the Company’s allowance for credit losses.

- 64 -

Other Income

The components of other income are presented in the accompanying table.

OTHER INCOME

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Mortgage banking revenues			$	106					$	104					$	2					1		%				$	210					$	192					$	18					9		%
Service charges on deposit accounts			127						124						3						3						251						232						19						8
Trust income			170						160						10						6						330						366						(36)						-10
Brokerage services income			30						29						1						5						59						49						10						21
Trading account and other non-hedging derivative gains			7						9						(2)						-29						16						28						(12)						-44
Gain (loss) on bank investment securities			(8)						2						(10)						—						(6)						1						(7)						—
Other revenues from operations			152						152						—						—						304						522						(218)						-42
Total other income			$	584					$	580					$	4					1		%				$	1,164					$	1,390					$	(226)					-16		%

Mortgage banking revenues

Mortgage banking revenues are comprised of both residential and commercial mortgage banking activities, which consist of realized gains and losses from sales of real estate loans and loan servicing rights, unrealized gains and losses on real estate loans held for sale and related commitments, real estate loan servicing fees, and other real estate loan related fees and income. The Company's involvement in commercial mortgage banking activities includes the origination, sales and servicing of loans under the multifamily loan programs of Fannie Mae, Freddie Mac, and the U.S. Department of Housing and Urban Development.

RESIDENTIAL MORTGAGE BANKING ACTIVITIES

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Residential mortgage banking revenues
Gains on loans originated for sale			$	7					$	7					$	—					5		%				$	14					$	11					$	3					24		%
Loan servicing fees			38						39						(1)						-3						77						57						20						34
Loan sub-servicing and other fees			31						32						(1)						-5						63						64						(1)						-1
Total loan servicing revenues			69						71						(2)						-4						140						121						19						16
Total residential mortgage banking revenues			$	76					$	78					$	(2)					-3		%				$	154					$	132					$	22					17		%
New commitments to originate loans for sale			$	399					$	288					$	111					38		%				$	687					$	671					$	16					3		%

(Dollars in millions)			June 30, 2024						March 31, 2024						December 31, 2023						June 30, 2023
Balances at period end
Loans held for sale			$	209					$	165					$	190					$	216
Commitments to originate loans for sale			281						211						163						243
Commitments to sell loans			419						315						295						393
Capitalized mortgage servicing rights			409						432						456						505
Loans serviced for others			39,034						39,598						40,021						40,943
Loans sub-serviced for others (a)			112,486						111,964						115,321						112,756
Total loans serviced for others			$	151,520					$	151,562					$	155,342					$	153,699

_______________________________________________________________

*(a)*The contractual servicing rights associated with residential mortgage loans sub-serviced by the Company were predominantly held by affiliates of BLG. Information about the Company’s relationship with BLG and its affiliates is included in note 16 of Notes to Financial Statements.

• The increase in residential mortgage loan servicing fees of $20 million in the six-month period ending June 30, 2024 as compared with the same 2023 period primarily reflects a $350 million bulk purchase of residential mortgage loan servicing rights associated with $19.5 billion of residential real estate loans on March 31, 2023.

- 65 -

COMMERCIAL MORTGAGE BANKING ACTIVITIES

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Commercial mortgage banking revenues
Gains on loans originated for sale			$	12					$	8					$	4					68		%				$	20					$	26					$	(6)					-22		%
Loan servicing fees and other			18						18						—						-6						36						34						2						5
Total commercial mortgage banking revenues			$	30					$	26					$	4					16		%				$	56					$	60					$	(4)					-7		%
Loans originated for sale to other investors			$	626					$	1,044					$	(418)					-40		%				$	1,670					$	1,612					$	58					4		%

(Dollars in millions)			June 30, 2024						March 31, 2024						December 31, 2023						June 30, 2023
Balances at period end
Loans held for sale			$	168					$	563					$	189					$	322
Commitments to originate loans for sale			682						451						916						310
Commitments to sell loans			850						1,014						1,105						632
Capitalized mortgage servicing rights			120						122						123						124
Loans serviced for others (a)			25,541						24,771						24,157						23,124
Loans sub-serviced for others			3,927						3,906						3,873						3,764
Total loans serviced for others			$	29,468					$	28,677					$	28,030					$	26,888

_______________________________________________________________

*(a)*Includes loan balances for which investors had recourse to the Company if such balances are ultimately uncollectible of $4.0 billion at each of June 30, 2024 and March 31, 2024, and $3.9 billion at each of December 31, 2023 and June 30, 2023.

• The increase in gains on commercial mortgage loans originated for sale in the second quarter of 2024 as compared with the first quarter of 2024 reflects higher volumes of new commitments to originate commercial real estate loans for sale.

• The decrease in gains on commercial mortgage loans originated for sale in the first half of 2024 as compared with the first half of 2023 reflects lower volumes of new commitments to originate commercial real estate loans for sale, which were influenced by a higher interest rate environment.

Service charges on deposit accounts

Service charges on deposit accounts for the first six months of 2024 increased $19 million as compared with the first six months of 2023 reflecting higher commercial service charges from pricing changes and increased customer usage of sweep products.

Trust income

Trust income primarily includes revenues from two significant businesses managed within the Company's Institutional Services and Wealth Management segment. The Institutional Services business provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients who: (i) use capital markets financing structures; (ii) use independent trustees to hold assets (including retirement plan assets prior to the sale of CIT); and (iii) need investment and cash management services. The Wealth Management business offers personal trust, planning, fiduciary, asset management, family office and other services designed to help high net worth individuals and families grow, preserve and transfer wealth.

- 66 -

TRUST INCOME AND ASSETS UNDER MANAGEMENT

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Trust income
Institutional Services			$	87					$	81					$	6					7		%				$	168					$	210					$	(42)					-20		%
Wealth Management			82						78						4						6						160						155						5						3
Commercial			1						1						—						11						2						1						1						114
Total trust income			$	170					$	160					$	10					6		%				$	330					$	366					$	(36)					-10		%

(Dollars in millions)			June 30, 2024						March 31, 2024						December 31, 2023						June 30, 2023
Assets under management at period end
Trust assets under management (excluding proprietary funds)			$	65,274					$	65,191					$	63,963					$	64,398
Proprietary mutual funds			14,139						15,280						14,772						14,103
Total assets under management			$	79,413					$	80,471					$	78,735					$	78,501

Trust income was $170 million in the recent quarter up $10 million from $160 million in the first quarter of 2024.

• Institutional Services trust income increased $6 million reflecting higher sales and fund management fees from its global capital markets business.

• Wealth Management income increased $4 million reflecting seasonal tax service fees in the recent quarter.

For the six months ended June 30, 2024 trust income totaled $330 million, compared with $366 million in the similar 2023 period.

• In April 2023, M&T completed the divestiture of its CIT business to a private equity firm. Revenues associated with that business and included in Institutional Services trust income totaled $60 million in the first half of 2023. After considering expenses, the results of operations of that business were not material to M&T's net income in 2023's initial six months.

• Institutional Services trust income not related to the CIT business increased $18 million for the first six months of 2024 as compared with the similar 2023 period reflecting higher sales and fund management fees from its global capital markets business.

• The higher level of trust income from the Wealth Management business reflected higher levels of assets under management and improved market performance.

Brokerage services income

Brokerage services income, which includes revenues from the sale of mutual funds and annuities, securities brokerage fees and select investment products of LPL Financial, an independent financial services broker, increased $10 million in the first six months of 2024 as compared with the first six months of 2023 reflecting higher annuities sales.

- 67 -

Other revenues from operations

The components of other revenues from operations are presented in the accompanying table.

OTHER REVENUES FROM OPERATIONS

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Letter of credit and other credit-related fees			$	49					$	44					$	5					14		%				$	93					$	91					$	2					3		%
Merchant discount and credit card fees			46						40						6						16						86						84						2						2
Bank owned life insurance revenue (a)			17						16						1						7						33						27						6						22
Equipment operating lease income			9						11						(2)						-12						20						32						(12)						-38
BLG income (b)			—						25						(25)						-100						25						20						5						25
Gain on divestiture of CIT			—						—						—						—						—						225						(225)						-100
Other			31						16						15						72						47						43						4						10
Total other revenues from operations			$	152					$	152					$	—					—		%				$	304					$	522					$	(218)					-42		%

_______________________________________________________________

*(a)*Tax-exempt income earned from bank owned life insurance includes increases in the cash surrender value of life insurance policies and benefits received. The Company owns both general account and separate account life insurance policies. To the extent market conditions change such that the market value of assets in a separate account bank owned life insurance policy becomes less than the previously recorded cash surrender value, an adjustment is recorded as a reduction to other revenues from operations.

*(b)*During 2017, the operating losses of BLG resulted in M&T reducing the carrying value of its investment in BLG to zero. Subsequently, M&T has received cash distributions when declared by BLG that result in the recognition of income by M&T. M&T expects cash distributions from BLG in the future, but the timing and amount of those distributions are not within M&T's control. BLG is entitled to receive distributions from its affiliates that provide asset management and other services that are available for distribution to BLG’s owners, including M&T. Information about the Company’s relationship with BLG and its affiliates is included in note 16 of Notes to Financial Statements.

Other revenues from operations in 2024's second quarter as compared with the initial 2024 quarter reflect increases in merchant discount and credit card fees, letter of credit and other credit-related fees and distributions from renewable energy and certain other tax credit investments. In the first quarter of 2024, other revenues from operations included a $25 million distribution from BLG.

Other revenues from operations in the first six months of 2024 declined $218 million from the first half of 2023 reflecting a $225 million gain on the sale of the CIT business in April 2023, a $12 million decline in operating lease income reflecting higher gains on sales of leased equipment recognized in the 2023 period, partially offset by a $6 million increase in tax-exempt income earned from bank owned life insurance and a $5 million increase in distributions received from M&T's investment in BLG.

Other Expense

The components of other expense are presented in the accompanying table.

OTHER EXPENSE

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Salaries and employee benefits			$	764					$	833					$	(69)					-8		%				$	1,597					$	1,546					$	51					3		%
Equipment and net occupancy			125						129						(4)						-3						254						256						(2)						-1
Outside data processing and software			124						120						4						4						244						212						32						15
Professional and other services			91						85						6						6						176						225						(49)						-22
FDIC assessments			37						60						(23)						-38						97						58						39						67
Advertising and marketing			27						20						7						34						47						59						(12)						-20
Amortization of core deposit and other intangible assets			13						15						(2)						-15						28						32						(4)						-14
Other costs of operations			116						134						(18)						-13						250						264						(14)						-5
Total other expense			$	1,297					$	1,396					$	(99)					-7		%				$	2,693					$	2,652					$	41					2		%

- 68 -

Salaries and employee benefits

• The number of full time equivalent employees was 22,110 at June 30, 2024, compared with 21,980 at December 31, 2023 and 22,946 at June 30, 2023.

• Salaries and employee benefits expenses decreased $69 million in the recent quarter as compared with the first quarter of 2024 reflecting seasonally higher stock-based compensation, payroll related-taxes and other employee benefits expense in the first quarter of 2024, partially offset by the full-quarter impact of annual merit increases awarded in the first quarter of 2024.

• Salaries and employee benefits expenses increased $51 million in the six months ended June 30, 2024 as compared with the year-earlier period reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower employee staffing levels.

Nonpersonnel expenses

• FDIC assessments reflect estimated special assessment expense of $5 million and $29 million in the second and first quarter of 2024, respectively, related to the FDIC's updated loss estimates associated with certain failed banks.

• Nonpersonnel expenses aggregated $533 million in the recent quarter as compared with $563 million in the first quarter of 2024. After considering the FDIC special assessment expenses in the first and second quarter of 2024, the $6 million decrease in the recent quarter as compared with 2024's first quarter reflects a decline in other costs of operations of $18 million that included lower expenses associated with the Company's supplemental executive retirement savings plan and losses on lease terminations related to certain vacated properties in the first quarter of 2024. That decline was partially offset by higher expenses for advertising and marketing and professional and other services in the first half of 2024.

• Nonpersonnel expenses decreased $10 million to $1.10 billion in the six months ended June 30, 2024 as compared with $1.11 billion in the first half of 2023. A decline in professional and other services expenses of $49 million, predominantly from lower sub-advisory fees following the sale of the CIT business in April 2023 and check fraud and other losses, were partially offset by higher FDIC assessments expense of $39 million. Estimated FDIC special assessment expense of $34 million was recognized in the first half of 2024.

Income Taxes

Income tax expense was $200 million in the second quarter of 2024, compared with $133 million in the first quarter of 2024. For the six-month periods ended June 30, 2024 and 2023, the provision for income taxes was $333 million and $516 million, respectively. The effective tax rates were 23.4% and 20.0% for the quarters ended June 30, 2024 and March 31, 2024, respectively, and 21.9% and 24.8% for the six-month periods ended June 30, 2024 and 2023, respectively. The first quarter of 2024 income tax expense included a net discrete benefit related to the resolution of a tax matter inherited from the acquisition of People's United. The effective tax rate is affected by the level of income earned that is exempt from tax relative to the overall level of pre-tax income, the amount of income allocated to the various state and local jurisdictions where the Company operates, because tax rates differ among such jurisdictions, and the impact of any large discrete or infrequently occurring items. The Company’s effective tax rate in future periods may also be affected by any change in income tax laws or regulations and interpretations of income tax regulations that differ from the Company’s interpretations by any of the various tax authorities that may examine tax returns filed by M&T or any of its subsidiaries.

Liquidity Risk

As a financial intermediary, the Company is exposed to various risks, including liquidity and market risk. Liquidity refers to the Company’s ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future obligations, including demands for loans and deposit withdrawals, funding operating costs and other corporate purposes. Liquidity risk arises whenever cash flows associated with financial instruments included in assets and liabilities differ.

- 69 -

The most significant source of funding for the Company is core deposits, which are generated from a large base of consumer, corporate and institutional customers. That customer base has, over the past several years, become more geographically diverse as a result of expansion of the Company’s businesses. Nevertheless, the Company faces competition in offering products and services from a large array of financial market participants, including banks, thrifts, mutual funds, securities dealers and others. Core deposits have remained stable in 2024, totaling $146.2 billion and $146.5 billion at June 30, 2024 and December 31, 2023, respectively.

The Company supplements funding provided through deposits with various short-term and long-term wholesale borrowings, including overnight federal funds purchased, repurchase agreements, advances from FHLBs, brokered deposits and longer-term borrowings. M&T Bank has access to additional funding sources through secured borrowings from the FHLB of New York and the FRB of New York. M&T Bank is also a counterparty to the FRB of New York standing repurchase agreement facility, which allows it to enter into overnight repurchase transactions using eligible investment securities. The Company has, in the past, issued subordinated capital notes and junior subordinated debentures associated with trust preferred securities to provide liquidity and enhance regulatory capital ratios. At June 30, 2024 and December 31, 2023, long-term borrowings aggregated $11.3 billion and $8.2 billion, respectively, and short-term borrowings aggregated $4.8 billion and $5.3 billion, respectively. Information about the Company's borrowings is presented in note 5 of Notes to Financial Statements.

The Company has benefited from the placement of brokered deposits. The Company had brokered savings and interest-checking deposit accounts which aggregated $8.2 billion at June 30, 2024 and $7.8 billion at December 31, 2023. Reflecting a mix shift in the Company's wholesale funding strategy, brokered time deposits totaled $2.4 billion at June 30, 2024, down $3.7 billion from $6.1 billion at December 31, 2023, as brokered time deposits matured. Approximately 80% of brokered time deposits at June 30, 2024 have a contractual maturity date in the next 12 months.

Total uninsured deposits were estimated to be $68.0 billion at June 30, 2024 and $67.0 billion at December 31, 2023. Approximately $10.3 billion and $10.7 billion of those uninsured deposits were collateralized by the Company at June 30, 2024 and December 31, 2023, respectively. The Company maintains available liquidity sources which represent approximately 141% of uninsured deposits that are not collateralized by the Company at June 30, 2024.

The Company’s ability to obtain funding from these sources could be negatively impacted should the Company experience a substantial deterioration in its financial condition or its debt ratings or should the availability of funding become restricted due to a disruption in the financial markets. The Company attempts to quantify such risks by conducting scenario analyses that estimate the liquidity impact resulting from a debt ratings downgrade and other market events. 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.

M&T’s primary source of funds to pay for operating expenses, shareholder dividends and treasury stock repurchases has historically been the receipt of dividends from its bank subsidiaries, which are subject to various regulatory limitations. Dividends from any bank subsidiary to M&T are limited by the amount of earnings of the subsidiary in the current year and the two preceding years. For purposes of that test, at June 30, 2024 approximately $1.9 billion was available for payment of dividends to M&T from bank subsidiaries. M&T may also obtain funding through long-term borrowings. Further information about the long-term outstanding borrowings of M&T is provided in note 5 of Notes to Financial Statements. As a bank holding company, M&T is obligated to serve as a managerial and financial source of strength to its bank subsidiaries as described in Part I, Item 1, "Business" in M&T's 2023 Annual Report. As its ability to access the capital markets may be affected by market disruptions, M&T maintains sufficient cash resources at its parent company to satisfy projected cash outflows for an extended period without reliance on dividends from subsidiaries or external financing. As of June 30, 2024, M&T's parent company liquidity covered projected cash outflows for more than 24 months, including dividends on common and preferred stock, debt service and scheduled debt maturities.

In addition to deposits and borrowings, other sources of liquidity include maturities and repayments of investment securities, loans and other earning assets, as well as cash generated from operations, such as fees collected for services. The Company also has the ability to securitize or sell certain financial assets, including various loan types, to provide other liquidity alternatives. U.S. Treasury and federal agency securities and government issued or

- 70 -

guaranteed mortgage-backed securities comprised 91% of the Company's debt securities portfolio at June 30, 2024. The weighted-average durations of debt investment securities available for sale and held to maturity at June 30, 2024 were 2.1 years and 5.3 years, respectively.

The Company enters into contractual obligations in the normal course of business that require future cash payments. Such obligations include, among others, payments related to deposits, borrowings, leases and other contractual commitments. Off-balance sheet commitments to customers may impact liquidity, including commitments to extend credit, standby letters of credit, commercial letters of credit, financial guarantees and indemnification contracts, and commitments to sell real estate loans. Because many of these commitments or contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. Further discussion of these commitments is provided in note 14 of Notes to Financial Statements.

The Company's Executive ALCO Committee closely monitors the Company’s liquidity position on an ongoing basis for compliance with internal policies and regulatory expectations. As a Category IV institution, the Company adheres to enhanced liquidity standards which require the performance of internal liquidity stress testing. The stress testing is designed to ensure the Company has sufficient liquidity to withstand both institution-specific and market-wide stress scenarios. For each scenario, the Company applies liquidity stress which may include deposit run-off, increased draws on unfunded loan commitments, increased collateral need for margin calls, increased haircuts on investment security-based funding and reductions in unsecured and secured borrowing capacity. Stress scenarios are measured over various time frames ranging from overnight to twelve months. As required by regulation, the Company maintains a liquidity buffer comprised of cash and highly liquid unencumbered securities to cover a 30-day stress horizon. Liquidity stress events occurring over longer time horizons can be mitigated by the availability of secured funding sources at the FHLB of New York and FRB of New York. The following table is a summary of the Company's available sources of liquidity at June 30, 2024 and December 31, 2023.

AVAILABLE LIQUIDITY SOURCES

(Dollars in millions)			June 30, 2024						December 31, 2023
Deposits at the FRB of New York			$	24,678					$	27,957
Unused secured borrowing facilities:
FRB of New York			21,485						17,106
FHLB of New York			15,240						16,765
Unencumbered investment securities (after estimated haircuts)			20,079						16,480
Total			$	81,482					$	78,308

Management continuously evaluates the use and mix of its various available funding alternatives, including short-term borrowings, issuances of long-term debt, the placement of brokered deposits and the securitization of certain loan products. Management does not anticipate engaging in any activities, either currently or in the long term, for which adequate funding would not be available and would therefore result in a significant strain on liquidity at either M&T or its subsidiary banks. In accordance with liquidity regulations, the Company maintains a contingency funding plan to facilitate on-going liquidity management in times of liquidity stress. The plan outlines various funding options available during a liquidity stress event and establishes a clear escalation protocol to be followed within the Company's risk management framework. The plan sets forth funding strategies and procedures that management can quickly leverage to assist in decision-making and specifies roles and responsibilities for departments impacted by a potential liquidity stress event.

Market Risk and Interest Rate Sensitivity

Market risk is the risk of loss from adverse changes in the market prices and/or interest rates of the Company’s financial instruments. The primary market risk the Company is exposed to is interest rate risk. Interest rate risk arises from the Company’s core banking activities of lending and deposit-taking, because assets and liabilities reprice at different times and by different amounts as interest rates change. As a result, net interest income earned by the Company is subject to the effects of changing interest rates. The Company measures interest rate risk by calculating the variability of net interest income in future periods under various interest rate scenarios using projected balances for earning assets, interest-bearing liabilities and derivatives used to hedge interest rate risk. Management’s philosophy toward interest rate risk management is to limit the variability of net interest income. The balances of

- 71 -

financial instruments used in the projections are based on expected growth from forecasted business opportunities, anticipated prepayments of loans and investment securities, and expected maturities of investment securities, loans and deposits. The Company has entered into interest rate swap agreements to help manage exposure to interest rate risk. At June 30, 2024, the aggregate notional amount of interest rate swap agreements entered into for interest rate risk management purposes that were currently in effect was $20.4 billion. In addition, the Company has entered into $9.4 billion of forward-starting interest rate swap agreements designated for hedging purposes. Information about interest rate swap agreements entered into for interest rate risk management purposes is included herein under the heading “Net Interest Margin” and in note 11 of Notes to Financial Statements.

The Company’s Executive ALCO Committee monitors the sensitivity of the Company’s net interest income to changes in interest rates with the aid of a computer model that forecasts net interest income under different interest rate scenarios. In modeling changing interest rates, the Company considers different yield curve shapes that consider both parallel (that is, simultaneous changes in interest rates at each point on the yield curve) and non-parallel (that is, allowing interest rates at points on the yield curve to vary by different amounts) shifts in the yield curve. In utilizing the model, market-implied forward interest rates over the subsequent twelve months are generally used to determine a base interest rate scenario for the net interest income simulation. That calculated base net interest income is then compared with the income calculated under the varying interest rate scenarios. The model considers the impact of ongoing lending and deposit-gathering activities, as well as interrelationships in the magnitude and timing of the repricing of financial instruments, including the effect of changing interest rates on expected prepayments and maturities. When deemed prudent, management has taken actions to mitigate exposure to interest rate risk through the use of on- or off-balance sheet financial instruments and intends to do so in the future. Possible actions include, but are not limited to, changes in the pricing of loan and deposit products, modifying the composition of earning assets and interest-bearing liabilities, and adding to, modifying or terminating existing interest rate swap agreements or other financial instruments used for interest rate risk management purposes.

The accompanying table as of June 30, 2024 and December 31, 2023 displays the estimated impact on net interest income in the base scenario described above resulting from parallel changes in interest rates across repricing categories during the first modeling year.

SENSITIVITY OF NET INTEREST INCOME TO CHANGES IN INTEREST RATES

						Calculated Increase (Decrease) in Projected Net Interest Income
(Dollars in millions)						June 30, 2024						December 31, 2023
Changes in interest rates
+200 basis points						$	(57)					$	(18)
+100 basis points						(9)						20
-100 basis points						(6)						(46)
-200 basis points						(19)						(83)

The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income. The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments, loan and deposit volumes, mix and pricing, and deposit maturities. In the scenarios presented, the Company also assumed gradual changes in interest rates during a twelve-month period as compared with the base scenario. Changes in amounts presented since December 31, 2023 reflect changes in portfolio composition (including shifts between noninterest-bearing and interest-bearing deposits, lower levels of brokered time deposits and higher levels of borrowings), the level of market-implied forward interest rates and hedging actions taken by the Company. Amidst the rising interest rate environment since the first quarter of 2022, M&T's cumulative deposit pricing beta, which is the change in deposit pricing in response to a change in market interest rates, approximated 55 percent. Excluding brokered deposits that cumulative pricing beta approximated 50 percent. The assumptions used in interest rate sensitivity modeling are inherently uncertain and, as a result, the Company cannot precisely predict the impact of changes in interest rates on net interest income. Actual results may differ significantly from those presented due to the timing, magnitude and frequency of changes in interest rates and changes in market conditions and interest rate differentials (spreads) between maturity/repricing categories, as well as any actions, such as those previously described, which management may take to counter such

- 72 -

changes. Management also uses an “economic value of equity” model to supplement the modeling technique described above and provide a long-term interest rate risk metric. Economic value of equity is a point-in-time analysis of the economic sensitivity of assets, liabilities and off-balance sheet positions that incorporates all cash flows over their estimated remaining lives. Management measures the impact of changes in market values due to interest rates under a number of scenarios, including immediate shifts of the yield curve.

In addition to the effect of interest rates, changes in fair value of the Company’s financial instruments can also result from a lack of trading activity for similar instruments in the financial markets. Information about the fair valuation of financial instruments is presented in note 13 of Notes to Financial Statements.

The Company enters into interest rate and foreign exchange contracts to meet the financial needs of customers that it includes in its financial statements as other non-hedging derivatives within other assets and other liabilities. Financial instruments utilized for such activities consist predominantly of interest rate swap agreements and forward and futures contracts related to foreign currencies. The Company generally mitigates the foreign currency and interest rate risk associated with customer activities by entering into offsetting positions with third parties that are also included in other assets and other liabilities. The fair values of non-hedging derivative positions associated with interest rate contracts and foreign currency and other option and futures contracts are presented in note 11 of Notes to Financial Statements. As with any non-government guaranteed financial instrument, the Company is exposed to credit risk associated with counterparties to the Company’s non-hedging derivative activities. Although the notional amounts of these contracts are not recorded in the Consolidated Balance Sheet, the unsettled fair values of such financial instruments are recorded in the Consolidated Balance Sheet. The fair values of such non-hedging derivative assets and liabilities recognized on the Consolidated Balance Sheet were $245 million and $992 million, respectively, at June 30, 2024 and $256 million and $898 million, respectively, at December 31, 2023. The fair value asset and liability amounts at June 30, 2024 have been reduced by contractual settlements of $861 million and $16 million, respectively, and at December 31, 2023 have been reduced by contractual settlements of $783 million and $32 million, respectively. The amounts associated with the Company's non-hedging derivative activities at June 30, 2024 and December 31, 2023 reflect changes in values associated with interest rate swap agreements entered into with commercial customers that are not subject to periodic variation margin settlement payments.

Trading account assets were $99 million at June 30, 2024 and $106 million at December 31, 2023. Included in trading account assets were assets related to deferred compensation plans of $22 million at each of June 30, 2024 and December 31, 2023. Changes in the fair values of such assets are recorded as trading account and other non-hedging derivative gains in the Consolidated Statement of Income. Included in accrued interest and other liabilities in the Consolidated Balance Sheet were $26 million and $27 million of liabilities related to deferred compensation plans at June 30, 2024 and December 31, 2023, respectively. Changes in the balances of such liabilities due to the valuation of allocated investment options to which the liabilities are indexed and recorded in other costs of operations in the Consolidated Statement of Income. Also included in trading account assets were investments in mutual funds and other assets that the Company was required to hold under terms of certain non-qualified supplemental retirement and other benefit plans that were assumed by the Company in various acquisitions. Those assets totaled $77 million at June 30, 2024 and $80 million at December 31, 2023.

Given the Company’s policies and positions, management believes that the potential loss exposure to the Company resulting from market risk associated with trading account and other non-hedging derivative activities was not material at June 30, 2024, however, as previously noted, the Company is exposed to credit risk associated with counterparties to transactions related to the Company’s actions to mitigate foreign currency and interest rate risk associated with customer activities. Information about the Company’s use of derivative financial instruments is included in note 11 of Notes to Financial Statements.

Capital

The following table presents components related to shareholders' equity and dividends. Reconciliations of total common shareholders’ equity and tangible common equity and total assets and tangible assets as of each of those dates are presented in Table 2.

- 73 -

SHAREHOLDERS' EQUITY, DIVIDENDS AND SELECT RATIOS

(Dollars in millions, except per share)			June 30, 2024						December 31, 2023						June 30, 2023
Preferred stock			$	2,744					$	2,011					$	2,011
Common shareholders' equity			25,680						24,946						23,790
Total shareholders' equity			$	28,424					$	26,957					$	25,801
Per share:
Common shareholders’ equity			$	153.57					$	150.15					$	143.41
Tangible common shareholders’ equity			102.42						98.54						91.58
Ratios:
Shareholders' equity to total assets			13.61		%				12.94		%				12.42		%
Tangible common shareholders' equity to tangible assets			8.55						8.20						7.63
Cash dividends declared for quarter ended:
Common stock (a)			$	228					$	217					$	217
Common stock per share			1.35						1.30						1.30
Preferred stock (a)			27						25						25

_______________________________________________________________

*(a)*Common stock dividends were $447 million and $436 million and preferred stock dividends were $52 million and $50 million for the six months ended June 30, 2024 and 2023, respectively.

On May 13, 2024, M&T issued 75,000 shares of Perpetual 7.5% Non-Cumulative Preferred Stock, Series J, with a liquidation preference of $10,000 per share. On July 10, 2024, M&T announced its intention to redeem all 350,000 outstanding shares of its Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E, on August 15, 2024. Additional information about issued and outstanding preferred stock of M&T is included in note 6 of Notes to Financial Statements.

Shareholders’ equity reflects accumulated other comprehensive income or loss, which includes the net after-tax impact of unrealized gains or losses on investment securities classified as available for sale, gains or losses associated with interest rate swap agreements designated as cash flow hedges and adjustments to reflect the funded status of defined benefit pension and other postretirement plans. The components of accumulated other comprehensive income (loss) are presented in the following table.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - NET OF INCOME TAX

(Dollars in millions, except per share)			June 30, 2024						December 31, 2023						June 30, 2023
Investment securities unrealized losses, net (a)			$	(179)					$	(187)					$	(328)
Cash flow hedges unrealized losses, net (b)			(246)						(151)						(325)
Defined benefit plans adjustments, net (c)			(118)						(115)						(205)
Other, net			(8)						(6)						(7)
Total			$	(551)					$	(459)					$	(865)
Accumulated other comprehensive income (loss), net, per common share			$	(3.29)					$	(2.76)					$	(5.21)

_______________________________________________________________

*(a)*Refer to note 3 of Notes to Financial Statements.

*(b)*Refer to note 11 of Notes to Financial Statements.

*(c)*Refer to note 8 of Notes to Financial Statements.

Reflected in the carrying amount of available-for-sale investment securities at June 30, 2024 were pre-tax effect unrealized gains of $12 million on securities with an amortized cost of $2.4 billion and pre-tax effect unrealized losses of $251 million on securities with an amortized cost of $11.7 billion. Information concerning the Company’s fair valuations of investment securities is provided in notes 3 and 13 of Notes to Financial Statements. As also described in note 3 of Notes to Financial Statements, the Company does not expect any material credit-related losses with respect to its investment securities portfolio at June 30, 2024.

Pursuant to previously approved capital plans and authorizations approved by M&T's Board of Directors, M&T repurchased 3,838,157 shares of its common stock for a total cost of $600 million, including the share repurchase excise tax, in the first six months of 2023. No common stock repurchases occurred in the first half of 2024. Discretion as to the amount and timing of authorized share repurchases in a given period has been delegated, through the authorization of the Board of Directors, to management and can be influenced by capital and liquidity

- 74 -

requirements, including funding of future loan growth and other balance sheet management activities, as well as market and economic conditions.

M&T and its subsidiary banks are required to comply with applicable Capital Rules. Pursuant to those regulations, the minimum capital ratios are as follows:

• 4.5% CET1 to RWA (each as defined in the Capital Rules);

• 6.0% Tier 1 capital (that is, CET1 plus additional Tier 1 capital) to RWA (each as defined in the Capital Rules);

• 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to RWA (each as defined in the Capital Rules); and

• 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”), as defined in the Capital Rules.

Capital Rules require buffers in addition to the minimum risk-based capital ratios noted above. M&T is subject to a SCB requirement that is determined through the Federal Reserve’s supervisory stress tests and M&T’s bank subsidiaries are subject to a 2.5% capital conservation buffer requirement. The buffer requirement must be composed entirely of CET1. M&T's current SCB is 4.0%. In June 2024, the Federal Reserve released the results of its most recent supervisory stress tests. Based on those results, M&T's SCB is estimated to be 3.8% effective October 1, 2024.

The regulatory capital ratios of the Company and its bank subsidiaries, M&T Bank and Wilmington Trust, N.A., as of June 30, 2024 are presented in the accompanying table.

REGULATORY CAPITAL RATIOS

June 30, 2024

(Dollars in millions)			M&T (Consolidated)						M&T Bank						Wilmington Trust, N.A.
CET1			11.45		%				12.16		%				268.47		%
Tier 1 capital			13.23						12.16						268.47
Total capital			14.88						13.60						268.89
Tier 1 leverage			10.04						9.22						87.74
RWA			$	154,646					$	154,158					$	226

Capital Rules generally require the deduction of goodwill and core deposit and other intangible assets, net of applicable deferred taxes, from the calculation of capital in the determination of the minimum capital ratios. As a result of previous business acquisitions, the Company recorded goodwill of $8.5 billion and core deposit and other intangible assets of $119 million at June 30, 2024. Goodwill, as required by GAAP, is not amortized, but rather is tested for impairment at least annually at the business reporting unit level. The Company completed its annual goodwill impairment test in the fourth quarter of 2023 and concluded the amount of goodwill was not impaired at the testing date. The Company has not identified events or circumstances that would more likely than not reduce the fair value of a business reporting unit below its carrying amount at June 30, 2024. Should a business reporting unit with assigned goodwill experience declines in revenue, increased credit losses or expenses, or other adverse developments due to economic, regulatory, competition or other factors, that would be material to that reporting unit, an impairment of goodwill could occur in a future period that could be material to the Company's Consolidated Balance Sheet and its Consolidated Statement of Income. Although a goodwill impairment charge would not have a significant impact on the Company's regulatory tangible capital ratios, it would reduce the capacity of its bank subsidiary, M&T Bank, to dividend earnings to M&T. As described herein under the heading "Liquidity Risk", M&T's parent company liquidity at June 30, 2024 covered projected cash outflows for more than 24 months, including dividends on common and preferred stock, debt service and scheduled debt maturities. Information concerning goodwill and other intangible assets is included in note 8 of Notes to Financial Statements in M&T's 2023 Annual Report.

- 75 -

The Company is subject to the comprehensive regulatory framework applicable to bank and financial holding companies and their subsidiaries, which includes examinations by a number of regulators. Regulation of financial institutions such as M&T and its subsidiaries is intended primarily for the protection of depositors, the Deposit Insurance Fund of the FDIC and the banking and financial system as a whole, and generally is not intended for the protection of shareholders, investors or creditors other than insured depositors. Changes in laws, regulations and regulatory policies applicable to the Company’s operations can increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive environment in which the Company operates, all of which could have a material effect on the business, financial condition or results of operations of the Company and on M&T’s ability to pay dividends. For additional information concerning this comprehensive regulatory framework, refer to Part I, Item 1 of M&T's 2023 Annual Report.

On July 27, 2023, the federal banking agencies issued a notice of proposed rulemaking to modify the regulatory capital requirements applicable to large banking organizations with total assets exceeding $100 billion, like the Company, to calculate RWAs using the higher of (i) an expanded risk-based approach and (ii) the current standardized approach and revised market risk requirements, among other changes described in Part I, Item 1 of M&T's 2023 Annual Report. Management is in the process of evaluating the impact of the proposed rule on the regulatory capital requirements of M&T and its subsidiary banks and currently estimates the proposed rules would increase the Company's RWA by a percentage in the mid-single digits.

Segment Information

Reportable segments have been determined based upon the Company's organizational structure and its internal profitability reporting system. Financial information about the Company's segments is presented in note 15 of Notes to Financial Statements. The reportable segments are Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. All other business activities that are not included in the three reportable segment results have been included in the "All Other" category.

NET INCOME (LOSS) BY SEGMENT

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Net income (loss)
Commercial Bank			$	205					$	201					$	4					2		%				$	406					$	568					$	(162)					-28		%
Retail Bank			472						446						26						5						918						927						(9)						-1
Institutional Services and Wealth Management			144						128						16						13						272						395						(123)						-31
All Other			(166)						(244)						78						32						(410)						(321)						(89)						-28
Total net income			$	655					$	531					$	124					23		%				$	1,186					$	1,569					$	(383)					-24		%

Commercial Bank

The Commercial Bank segment provides a wide range of credit products and banking services to middle-market and large commercial customers, mainly within the markets served by the Company. Services provided by this segment include commercial lending and leasing, credit facilities which are secured by various types of commercial real estate, letters of credit, deposit products and cash management services. Commercial real estate loans may be secured by multifamily residential buildings, hotels, office, retail and industrial space or other types of collateral. Activities of this segment include the origination, sales and servicing of commercial real estate loans through the Fannie Mae DUS program and other programs. Commercial real estate loans held for sale are included in this segment.

- 76 -

COMMERCIAL BANK SEGMENT FINANCIAL SUMMARY

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Income Statement
Net interest income			$	553					$	548					$	5					1		%				$	1,101					$	1,246					$	(145)					-12		%
Noninterest income			164						151						13						8						315						324						(9)						-3
Total revenue			717						699						18						3						1,416						1,570						(154)						-10
Provision for credit losses			77						77						—						-1						154						130						24						19
Noninterest expense			359						345						14						4						704						663						41						6
Income before taxes			281						277						4						2						558						777						(219)						-28
Income taxes			76						76						—						1						152						209						(57)						-28
Net income			$	205					$	201					$	4					2		%				$	406					$	568					$	(162)					-28		%
Average Balance Sheet
Loans and leases:
Commercial and industrial			$	50,341					$	49,048					$	1,293					3		%				$	49,695					$	45,732					$	3,963					9		%
Commercial real estate			29,561						30,747						(1,186)						-4						30,153						33,140						(2,987)						-9
Residential real estate			437						447						(10)						-2						442						370						72						19
Consumer			29						25						4						19						27						25						2						7
Total loans and leases, net			$	80,368					$	80,267					$	101					—		%				$	80,317					$	79,267					$	1,050					1		%
Deposits:
Noninterest-bearing			$	12,523					$	13,459					$	(936)					-7		%				$	12,991					$	18,716					$	(5,725)					-31		%
Interest-bearing			30,429						30,074						355						1						30,251						23,090						7,161						31
Total deposits			$	42,952					$	43,533					$	(581)					-1		%				$	43,242					$	41,806					$	1,436					3		%

The Commercial Bank segment’s net income was $205 million in the second quarter of 2024, compared with $201 million in the first quarter of 2024.

• Net interest income was largely unchanged reflecting a widening of the net interest margin on loans and leases of 7 basis points, partially offset by a 7 basis-point narrowing of the net interest margin on deposits.

• Noninterest income increased $13 million reflecting higher credit-related fees of $6 million and a rise in commercial mortgage banking revenues of $4 million.

• Noninterest expenses increased $14 million reflecting a rise in personnel-related costs of $8 million, resulting from the full-quarter impact of annual merit increases awarded in the first quarter of 2024 and higher incentive compensation.

• Average loans and leases rose modestly reflecting a $1.3 billion increase in average commercial and industrial loans that spanned most industry types, largely offset by a $1.2 billion reduction in average commercial real estate loans.

• Average deposits in the recent quarter as compared with the first quarter of 2024 reflect moderating disintermediation amidst an elevated interest rate environment.

Net income for the Commercial Bank segment declined $162 million in the first half of 2024 from $568 million in the first six months of 2023.

• Net interest income declined $145 million reflecting a narrowing of the net interest margin on loans and deposits of 25 basis points and 36 basis points, respectively, partially offset by a rise in average outstanding loan and deposit balances of $1.1 billion and $1.4 billion, respectively.

• Noninterest income decreased $9 million due to lower gains on sales of leased equipment and a decline in commercial mortgage banking revenues, partially offset by higher service charges on commercial deposit accounts.

• Provision for credit losses increased $24 million reflecting higher net charge-offs of commercial and industrial loans, partially offset by lower net charge-offs of loans secured by commercial real estate.

- 77 -

• Noninterest expense increased $41 million reflecting a rise in centrally-allocated costs associated with data processing, risk management and other support services provided to the Commercial Bank segment of $35 million.

• The increase in average loans as compared with the first six months of 2023 reflects higher average balances of commercial and industrial loans including growth in loans to financial and insurance industry customers and motor-vehicle and recreational finance dealers, partially offset by a reduction in average permanent commercial real estate and average construction loans.

• Average deposits grew $1.4 billion compared with the first six months of 2023 and reflected a shift in customer funds from noninterest-bearing accounts to interest-bearing products amidst an elevated interest rate environment.

Retail Bank

The Retail Bank segment provides a wide range of services to consumers and small businesses through the Company’s branch network and several other delivery channels such as telephone banking, internet banking and automated teller machines. The Company has branch offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Massachusetts, Maine, Vermont, New Hampshire, Virginia, West Virginia and the District of Columbia. The segment offers to its customers deposit products, including demand, savings and time accounts, and other services. Credit services offered by this segment include automobile and recreational finance loans (originated both directly and indirectly through dealers), home equity loans and lines of credit, credit cards and other loan products. This segment also originates and services residential mortgage loans and either sells those loans in the secondary market to investors or retains them for investment purposes. Residential mortgage loans are also originated and serviced on behalf of the Institutional Services and Wealth Management segment. The Company periodically purchases the rights to service residential real estate loans that have been originated by other entities and also sub-services residential real estate loans for others. Residential real estate loans held for sale are included in this segment. This segment also provides various business loans, including loans guaranteed by the SBA, business credit cards, deposit products and services such as cash management, payroll and direct deposit, merchant credit card and letters of credits to small businesses and professionals through the Company's branch network and other delivery channels.

RETAIL BANK SEGMENT FINANCIAL SUMMARY

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Income Statement
Net interest income			$	1,090					$	1,071					$	19					2		%				$	2,161					$	2,160					$	1					—		%
Noninterest income			204						197						7						3						401						370						31						8
Total revenue			1,294						1,268						26						2						2,562						2,530						32						1
Provision for credit losses			60						68						(8)						-12						128						73						55						75
Noninterest expense			599						599						—						—						1,198						1,205						(7)						—
Income before taxes			635						601						34						5						1,236						1,252						(16)						-1
Income taxes			163						155						8						5						318						325						(7)						-2
Net income			$	472					$	446					$	26					5		%				$	918					$	927					$	(9)					-1		%
Average Balance Sheet
Loans and leases:
Commercial and industrial			$	6,955					$	6,874					$	81					1		%				$	6,914					$	6,806					$	108					2		%
Commercial real estate			1,859						1,904						(45)						-2						1,881						1,895						(14)						-1
Residential real estate			20,628						20,843						(215)						-1						20,736						21,669						(933)						-4
Consumer			21,201						20,387						814						4						20,794						19,539						1,255						6
Total loans and leases, net			$	50,643					$	50,008					$	635					1		%				$	50,325					$	49,909					$	416					1		%
Deposits:
Noninterest-bearing			$	25,150					$	25,380					$	(230)					-1		%				$	25,265					$	29,760					$	(4,495)					-15		%
Interest-bearing			67,156						66,269						887						1						66,712						61,654						5,058						8
Total deposits			$	92,306					$	91,649					$	657					1		%				$	91,977					$	91,414					$	563					1		%

- 78 -

The Retail Bank segment’s net income increased $26 million to $472 million in the second quarter of 2024 from $446 million in the first quarter of 2024.

• Net interest income increased $19 million reflecting a 7 basis-point widening of the net interest margin on deposits and an increase in average outstanding deposit balances of $657 million.

• Noninterest income increased $7 million reflecting higher service charges on deposit accounts and merchant discount and credit card fees.

• Provision for credit losses declined $8 million reflecting lower net charge-offs of indirect lending products.

• Average loans increased $635 million reflecting growth in the segment's portfolio of recreational finance loans and automobile loans, partially offset by net paydowns of residential real estate loans.

• Higher average deposits in the recent quarter as compared with the first quarter of 2024 reflect stability of retail customer deposits.

Net income for the Retail Bank segment decreased $9 million in the first half of 2024 from $927 million in the similar 2023 period.

• Noninterest income increased $31 million primarily due to higher residential mortgage banking revenues reflecting a rise in servicing income from the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023 and an increase in service charges on deposit accounts.

• Provision for credit losses increased $55 million reflecting higher net charge-offs of consumer loans.

• Noninterest expense decreased $7 million predominantly due to lower other cost of operations of $23 million, reflecting lower check fraud and other losses, and a decline in personnel-related costs of $16 million reflecting lower staffing levels, partially offset by higher centrally-allocated costs associated with data processing, risk management, and other support services provided to the Retail Bank segment of $34 million.

• Average loans in the first half of 2024 grew $416 million as compared with the similar 2023 period, reflecting higher average consumer loans resulting from growth of recreational finance loan balances, partially offset by lower average balances of residential real estate loans.

• Average deposits in the six months ended June 30, 2024 as compared with the six months ended June 30, 2023 reflect a shift from noninterest-bearing accounts to interest-bearing products amidst an elevated interest rate environment.

Institutional Services & Wealth Management

The Institutional Services and Wealth Management segment provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients, as well as personal trust, planning, fiduciary, asset management, family office and other services designed to help high net worth individuals and families grow, preserve and transfer wealth. This segment also provides investment products, including mutual funds and annuities and other services to customers.

- 79 -

INSTITUTIONAL SERVICES & WEALTH MANAGEMENT SEGMENT FINANCIAL SUMMARY

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Income Statement
Net interest income			$	194					$	186					$	8					4		%				$	380					$	346					$	34					10		%
Noninterest income			207						191						16						9						398						635						(237)						-37
Total revenue			401						377						24						6						778						981						(203)						-21
Provision for credit losses			3						—						3						—						3						—						3						—
Noninterest expense			203						205						(2)						-1						408						447						(39)						-9
Income before taxes			195						172						23						13						367						534						(167)						-31
Income taxes			51						44						7						14						95						139						(44)						-32
Net income			$	144					$	128					$	16					13		%				$	272					$	395					$	(123)					-31		%
Average Balance Sheet
Loans and leases:
Commercial and industrial			$	727					$	783					$	(56)					-7		%				$	755					$	794					$	(39)					-5		%
Commercial real estate			38						48						(10)						-22						43						54						(11)						-21
Residential real estate			1,941						1,846						95						5						1,893						1,736						157						9
Consumer			731						722						9						1						727						818						(91)						-11
Total loans and leases, net			$	3,437					$	3,399					$	38					1		%				$	3,418					$	3,402					$	16					—		%
Deposits:
Noninterest-bearing			$	9,340					$	9,081					$	259					3		%				$	9,211					$	9,818					$	(607)					-6		%
Interest-bearing			7,938						7,168						770						11						7,553						7,505						48						1
Total deposits			$	17,278					$	16,249					$	1,029					6		%				$	16,764					$	17,323					$	(559)					-3		%

The Institutional Services and Wealth Management segment’s net income increased $16 million to $144 million in the second quarter of 2024 from $128 million in the first quarter of 2024.

• Net interest income increased $8 million reflecting a $1.0 billion increase in average outstanding deposit balances, partially offset by an 8 basis-point narrowing of the net interest margin on deposits.

• Noninterest income increased $16 million reflecting higher trust income of $10 million due to higher sales and fund management fees as well as seasonal tax service fees in the recent quarter.

Net income for the Institutional Services and Wealth Management segment decreased $123 million for the six months ended June 30, 2024 from $395 million in the comparable 2023 period.

• Net interest income increased $34 million reflecting a widening of the net interest margin on deposits of 49 basis points, partially offset by a $559 million decline in average outstanding deposit balances.

• Noninterest income decreased $237 million predominantly due to the $225 million gain on sale of the CIT business in the second quarter of 2023 and a decline in trust income of $37 million, reflecting lower revenues associated with the CIT business of $60 million following its sale, partially offset by higher sales from the segment's global capital markets business, and an increase in brokerage services income of $10 million.

• Noninterest expenses decreased $39 million reflecting a $52 million decline in professional and other services expense due, in part, to lower sub-advisory fees as a result of the sale of the CIT business, partially offset by an increase in personnel-related costs of $7 million.

All Other

The “All Other” category reflects other activities of the Company that are not directly attributable to the reported segments. Reflected in this category are the difference between the provision for credit losses and the calculated provision allocated to the reportable segments; goodwill and core deposit and other intangible assets resulting from the acquisitions of financial institutions; merger-related gains and expenses related to acquisitions; the net impact of the Company’s internal funds transfer pricing methodology; eliminations of transactions between reportable segments; certain non-recurring transactions; and the residual effects of unallocated support systems and general and

- 80 -

administrative expenses. The Company’s investment securities portfolio, brokered deposits and short-term and long-term borrowings are generally included in the “All Other” category. In its management of interest rate risk, the Company utilizes interest rate swap agreements to modify the repricing characteristics of certain portfolios of earning assets and interest-bearing liabilities. The results of such activities are captured in the "All Other" category.

ALL OTHER CATEGORY FINANCIAL SUMMARY

			Three Months Ended												Change												Six Months Ended												Change
(Dollars in millions)			June 30, 2024						March 31, 2024						Amount						%						June 30, 2024						June 30, 2023						Amount						%
Income Statement
Net interest income (expense)			$	(119)					$	(125)					$	6					4		%				$	(244)					$	(135)					$	(109)					-82		%
Noninterest income			9						41						(32)						-77						50						61						(11)						-18
Total revenue (expense)			(110)						(84)						(26)						-31						(194)						(74)						(120)						-164
Provision for credit losses			10						55						(45)						-82						65						67						(2)						-3
Noninterest expense			136						247						(111)						-45						383						337						46						13
Loss before taxes			(256)						(386)						130						34						(642)						(478)						(164)						-34
Income taxes			(90)						(142)						52						37						(232)						(157)						(75)						-48
Net loss			$	(166)					$	(244)					$	78					32		%				$	(410)					$	(321)					$	(89)					-28		%

The “All Other” category recorded a net loss in the second quarter of 2024 of $166 million, compared with a net loss of $244 million in the first quarter of 2024.

• Noninterest income decreased $32 million primarily reflecting BLG distributions of $25 million received in the first quarter of 2024 and realized losses on sales of certain non-agency investment securities in the recent quarter.

• Provision for credit losses decreased $45 million reflecting the net impact of the allocation of provision for credit losses to reportable segments.

• Noninterest expense decreased $111 million reflecting seasonally higher salaries and employee benefits expenses in the first quarter of 2024 and lower FDIC special assessment expense of $24 million in the recent quarter.

The net loss recorded for the “All Other” category was $410 million for the first six months of 2024 as compared with $321 million in the similar 2023 period.

• Net interest income decreased $109 million reflecting higher net interest expense from interest rate swap agreements entered into for interest rate risk management purposes, as well as the unfavorable impact from the Company’s allocation methodologies for internal transfers related to funding charges and credits associated with earning assets and interest-bearing liabilities of the Company’s reportable segments.

• Noninterest income decreased $11 million reflecting realized losses on sales of certain non-agency investment securities.

• Noninterest expense increased $46 million reflecting the FDIC special assessment expense of $34 million recorded in the first half of 2024.

Other Matters

On March 6, 2024, the SEC adopted a final rule to enhance and standardize climate-related disclosures by public companies. The final rule requires registrants, including the Company, to disclose their risk management processes for material climate-related risks, governance and oversight of material climate-risks and any risks that have materially impacted, or are reasonably likely to have a material impact on, its business strategy, results of operations or financial condition. Additionally, the final rule requires disclosure of material Scope 1 and Scope 2 greenhouse gas emissions, material climate targets and goals and certain disclosures related to severe weather events and other natural conditions. Such disclosures will be required in a registrant’s annual reporting under a phased-in approach beginning with annual reports for the year ending December 31, 2025 for calendar-year-end large accelerated filers,

- 81 -

such as M&T. On April 4, 2024, the SEC issued an order to stay the final rule pending the completion of judicial review by the United States Court of Appeals for the Eighth Circuit.

Recent Accounting Developments

A discussion of the Company's significant accounting policies and critical accounting estimates can be found in M&T's 2023 Annual Report. A summary of recent accounting developments is included in note 1 of Notes to Financial Statements.

Forward-Looking Statements

Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this quarterly report contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about the Company’s business, and management's beliefs and assumptions.

Statements regarding the potential effects of events or factors specific to the Company and/or the financial industry as a whole, as well as national and global events generally, on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control.

Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted.

While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events and developments in the financial services industry, including industry conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in the Company's credit ratings; the impact of the People's United acquisition; domestic or international political developments and other geopolitical events, including international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding, common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

- 82 -

These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which the Company does business, and other factors.

The Company provides further detail regarding these risks and uncertainties in its 2023 Annual Report, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty and does not undertake to update forward-looking statements.

- 83 -

M&T BANK CORPORATION AND SUBSIDIARIES

Table 1

QUARTERLY TRENDS

			2024 Quarters												2023 Quarters
(Dollars in millions, except per share, shares in thousands)			Second						First						Fourth						Third						Second						First
Earnings and dividends
Interest income (taxable-equivalent basis)			$	2,802					$	2,757					$	2,753					$	2,656					$	2,530					$	2,341
Interest expense			1,071						1,065						1,018						866						717						509
Net interest income			1,731						1,692						1,735						1,790						1,813						1,832
Less: provision for credit losses			150						200						225						150						150						120
Other income			584						580						578						560						803						587
Less: other expense			1,297						1,396						1,450						1,278						1,293						1,359
Income before income taxes			868						676						638						922						1,173						940
Applicable income taxes			200						133						143						217						292						224
Taxable-equivalent adjustment			13						12						13						15						14						14
Net income			$	655					$	531					$	482					$	690					$	867					$	702
Net income available to common shareholders-diluted			$	626					$	505					$	457					$	664					$	841					$	676
Per common share data:
Basic earnings			3.75						3.04						2.75						4.00						5.07						4.03
Diluted earnings			3.73						3.02						2.74						3.98						5.05						4.01
Cash dividends			1.35						1.30						1.30						1.30						1.30						1.30
Average common shares outstanding:
Basic			166,951						166,460						165,985						165,909						165,842						167,732
Diluted			167,659						167,084						166,731						166,570						166,320						168,410
Performance ratios
Annualized return on:
Average assets			1.24		%				1.01		%				.92		%				1.33		%				1.70		%				1.40		%
Average common shareholders’ equity			9.95						8.14						7.41						10.99						14.27						11.74
Net interest margin on average earning assets (taxable-equivalent basis)			3.59						3.52						3.61						3.79						3.91						4.04
Nonaccrual loans to total loans and leases, net of unearned discount			1.50						1.71						1.62						1.77						1.83						1.92
Net operating (tangible) results (a)
Net operating income			$	665					$	543					$	494					$	702					$	879					$	715
Diluted net operating income per common share			3.79						3.09						2.81						4.05						5.12						4.09
Annualized return on:
Average tangible assets			1.31		%				1.08		%				.98		%				1.41		%				1.80		%				1.49		%
Average tangible common shareholders’ equity			15.27						12.67						11.70						17.41						22.73						19.00
Efficiency ratio (b)			55.3						60.8						62.1						53.7						48.9						55.5
Balance sheet data
Average balances:
Total assets (c)			$	211,981					$	211,478					$	208,752					$	205,791					$	204,376					$	202,599
Total tangible assets (c)			203,420						202,906						200,172						197,199						195,764						193,957
Earning assets			193,676						193,135						190,536						187,403						185,936						184,069
Investment securities			29,695						28,587						27,490						27,993						28,623						27,622
Loans and leases, net of unearned discount			134,588						133,796						132,770						132,617						133,545						132,012
Deposits			163,491						164,065						164,713						162,688						159,399						161,537
Borrowings			16,452						16,001						13,057						12,585						15,055						11,505
Common shareholders’ equity (c)			25,340						25,008						24,489						24,009						23,674						23,366
Tangible common shareholders’ equity (c)			16,779						16,436						15,909						15,417						15,062						14,724
At end of quarter:
Total assets (c)			208,855						215,137						208,264						209,124						207,672						202,956
Total tangible assets (c)			200,302						206,574						199,689						200,538						199,074						194,321
Earning assets			189,787						195,712						189,140						189,942						188,504						183,853
Investment securities			29,894						28,496						26,897						27,336						27,916						28,443
Loans and leases, net of unearned discount			135,002						134,973						134,068						132,355						133,344						132,938
Deposits			159,910						167,196						163,274						164,128						162,058						159,075
Borrowings			16,083						16,245						13,517						13,854						15,325						14,458
Common shareholders’ equity (c)			25,680						25,158						24,946						24,186						23,790						23,366
Tangible common shareholders’ equity (c)			17,127						16,595						16,371						15,600						15,192						14,731
Equity per common share			153.57						150.90						150.15						145.72						143.41						140.88
Tangible equity per common share			102.42						99.54						98.54						93.99						91.58						88.81

____________________________________________

*(a)*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 2.

*(b)*Excludes impact of merger-related expenses and net securities transactions.

*(c)*The difference between total assets and total tangible assets, and common shareholders’ equity and tangible common shareholders’ equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in Table 2.

- 84 -

M&T BANK CORPORATION AND SUBSIDIARIES

Table 2

RECONCILIATION OF QUARTERLY GAAP TO NON-GAAP MEASURES

			2024 Quarters												2023 Quarters
(Dollars in millions, except per share)			Second						First						Fourth						Third						Second						First
Income statement data
Net income
Net income			$	655					$	531					$	482					$	690					$	867					$	702
Amortization of core deposit and other intangible assets (a)			10						12						12						12						12						13
Net operating income			$	665					$	543					$	494					$	702					$	879					$	715
Earnings per common share
Diluted earnings per common share			$	3.73					$	3.02					$	2.74					$	3.98					$	5.05					$	4.01
Amortization of core deposit and other intangible assets (a)			.06						.07						.07						.07						.07						.08
Diluted net operating earnings per common share			$	3.79					$	3.09					$	2.81					$	4.05					$	5.12					$	4.09
Other expense
Other expense			$	1,297					$	1,396					$	1,450					$	1,278					$	1,293					$	1,359
Amortization of core deposit and other intangible assets			(13)						(15)						(15)						(15)						(15)						(17)
Noninterest operating expense			$	1,284					$	1,381					$	1,435					$	1,263					$	1,278					$	1,342
Efficiency ratio
Noninterest operating expense (numerator)			$	1,284					$	1,381					$	1,435					$	1,263					$	1,278					$	1,342
Taxable-equivalent net interest income			$	1,731					$	1,692					$	1,735					$	1,790					$	1,813					$	1,832
Other income			584						580						578						560						803						587
Less: Gain (loss) on bank investment securities			(8)						2						4						—						1						—
Denominator			$	2,323					$	2,270					$	2,309					$	2,350					$	2,615					$	2,419
Efficiency ratio			55.3		%				60.8		%				62.1		%				53.7		%				48.9		%				55.5		%
Balance sheet data
Average assets
Average assets			$	211,981					$	211,478					$	208,752					$	205,791					$	204,376					$	202,599
Goodwill			(8,465)						(8,465)						(8,465)						(8,465)						(8,473)						(8,490)
Core deposit and other intangible assets			(126)						(140)						(154)						(170)						(185)						(201)
Deferred taxes			30						33						39						43						46						49
Average tangible assets			$	203,420					$	202,906					$	200,172					$	197,199					$	195,764					$	193,957
Average common equity
Average total equity			$	27,745					$	27,019					$	26,500					$	26,020					$	25,685					$	25,377
Preferred stock			(2,405)						(2,011)						(2,011)						(2,011)						(2,011)						(2,011)
Average common equity			25,340						25,008						24,489						24,009						23,674						23,366
Goodwill			(8,465)						(8,465)						(8,465)						(8,465)						(8,473)						(8,490)
Core deposit and other intangible assets			(126)						(140)						(154)						(170)						(185)						(201)
Deferred taxes			30						33						39						43						46						49
Average tangible common equity			$	16,779					$	16,436					$	15,909					$	15,417					$	15,062					$	14,724
At end of quarter
Total assets
Total assets			$	208,855					$	215,137					$	208,264					$	209,124					$	207,672					$	202,956
Goodwill			(8,465)						(8,465)						(8,465)						(8,465)						(8,465)						(8,490)
Core deposit and other intangible assets			(119)						(132)						(147)						(162)						(177)						(192)
Deferred taxes			31						34						37						41						44						47
Total tangible assets			$	200,302					$	206,574					$	199,689					$	200,538					$	199,074					$	194,321
Total common equity
Total equity			$	28,424					$	27,169					$	26,957					$	26,197					$	25,801					$	25,377
Preferred stock			(2,744)						(2,011)						(2,011)						(2,011)						(2,011)						(2,011)
Common equity			25,680						25,158						24,946						24,186						23,790						23,366
Goodwill			(8,465)						(8,465)						(8,465)						(8,465)						(8,465)						(8,490)
Core deposit and other intangible assets			(119)						(132)						(147)						(162)						(177)						(192)
Deferred taxes			31						34						37						41						44						47
Total tangible common equity			$	17,127					$	16,595					$	16,371					$	15,600					$	15,192					$	14,731

____________________________________________

*(a)*After any related tax effect.

- 85 -