Item 1. Financial Statements (Unaudited).

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Item 1. Financial Statements (Unaudited).

M&T Bank Corporation and Subsidiaries

Consolidated Balance Sheet (Unaudited)


(Dollars in millions, except per share)	March 31, 2025		December 31, 2024
Assets
Cash and due from banks	$	2,109	$	1,909
Interest-bearing deposits at banks	20,656		18,873

Trading account	96		101
Investment securities:
Available for sale (cost: $20,807 at March 31, 2025; $19,054 at December 31, 2024)	20,799		18,849
Held to maturity (fair value: $12,308 at March 31, 2025; $12,955 at December 31, 2024)	13,352		14,195
Equity and other securities (cost: $986 at March 31, 2025; $1,007 at December 31, 2024)	986		1,007
Total investment securities	35,137		34,051


Loans and leases (a)	134,574		135,581
Allowance for credit losses	(2,200)		(2,184)
Net loans and leases	132,374		133,397
Premises and equipment	1,661		1,705
Goodwill	8,465		8,465
Core deposit and other intangible assets	93		94
Accrued interest and other assets	9,730		9,510
Total assets	$	210,321	$	208,105
Liabilities
Noninterest-bearing deposits	$	49,051	$	46,020
Savings and interest-checking deposits	102,379		100,599
Time deposits	13,979		14,476
Total deposits	165,409		161,095
Short-term borrowings	1,573		1,060
Long-term borrowings (a)	10,496		12,605
Accrued interest and other liabilities	3,852		4,318
Total liabilities	181,330		179,078
Shareholders' equity
Preferred stock	2,394		2,394
Common stock, $0.50 par, 250,000,000 shares authorized, 179,436,779 shares issued at March 31, 2025 and December 31, 2024	90		90
Common stock issuable, 9,490 shares at March 31, 2025; 11,642 shares at December 31, 2024	1		1
Additional paid-in capital	9,968		9,998
Retained earnings	19,405		19,079
Accumulated other comprehensive income (loss), net	90		(164)
Treasury stock — common, at cost — 16,894,734 shares at March 31, 2025; 13,922,820 shares at December 31, 2024	(2,957)		(2,371)
Total shareholders’ equity	28,991		29,027
Total liabilities and shareholders’ equity	$	210,321	$	208,105

__________________________________________________________________________________

*(a)*Loans and leases of $2.1 billion and $1.5 billion at March 31, 2025 and December 31, 2024, respectively, were held in special purpose trusts to settle the respective obligations of asset-backed notes issued by those trusts. The outstanding balances of those asset-backed notes were included in Long-term borrowings and were $1.8 billion at March 31, 2025 and $1.2 billion at December 31, 2024.

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Income (Unaudited)


	Three Months Ended March 31,
(Dollars in millions, except per share, shares in thousands)	2025		2024
Interest income
Loans and leases	$	2,006	$	2,097
Investment securities:
Fully taxable	321		212
Exempt from federal taxes	15		16
Deposits at banks	218		419
Other	—		1
Total interest income	2,560		2,745
Interest expense
Savings and interest-checking deposits	552		615
Time deposits	124		225
Short-term borrowings	32		84
Long-term borrowings	157		141
Total interest expense	865		1,065
Net interest income	1,695		1,680
Provision for credit losses	130		200
Net interest income after provision for credit losses	1,565		1,480
Other income
Mortgage banking revenues	118		104
Service charges on deposit accounts	133		124
Trust income	177		160
Brokerage services income	32		29
Trading account and other non-hedging derivative gains	9		9
Gain (loss) on bank investment securities	—		2
Other revenues from operations	142		152
Total other income	611		580
Other expense
Salaries and employee benefits	887		833
Equipment and net occupancy	132		129
Outside data processing and software	136		120
Professional and other services	84		85
FDIC assessments	23		60
Advertising and marketing	22		20
Amortization of core deposit and other intangible assets	13		15
Other costs of operations	118		134
Total other expense	1,415		1,396
Income before taxes	761		664
Income taxes	177		133
Net income	$	584	$	531
Net income available to common shareholders
Basic	$	547	$	505
Diluted	547		505
Net income per common share
Basic	3.33		3.04
Diluted	3.32		3.02
Average common shares outstanding
Basic	164,209		166,460
Diluted	165,047		167,084

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income (Unaudited)


	Three Months Ended March 31,
(Dollars in millions)	2025		2024
Net income	$	584	$	531
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	147		(10)
Cash flow hedges adjustments	108		(117)
Defined benefit plans liability adjustments	(2)		(1)
Other	1		(2)
Total other comprehensive income (loss)	254		(130)
Total comprehensive income	$	838	$	401

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)


	Three Months Ended March 31,
(Dollars in millions)	2025		2024
Cash flows from operating activities
Net income	$	584	$	531
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	130		200
Depreciation and amortization of premises and equipment	83		80
Amortization of capitalized servicing rights	34		35
Amortization of core deposit and other intangible assets	13		15
Provision for deferred income taxes	(6)		2
Asset write-downs	3		6
Net gain on sales of assets	(5)		(1)
Net change in accrued interest receivable, payable	(63)		27
Net change in other accrued income and expense	(140)		(74)
Net change in loans originated for sale	159		(352)
Net change in trading account and other non-hedging derivative assets and liabilities	(157)		139
Net cash provided by operating activities	635		608
Cash flows from investing activities
Proceeds from sales of investment securities:
Available for sale	—		4
Equity and other securities	159		110
Proceeds from maturities of investment securities:
Available for sale	820		1,989
Held to maturity	848		257
Purchases of investment securities:
Available for sale	(2,571)		(4,145)

Equity and other securities	(138)		(264)
Net (increase) decrease in loans and leases	703		(724)
Net increase in interest-bearing deposits at banks	(1,783)		(4,075)
Capital expenditures, net	(25)		(35)
Net (increase) decrease in loan servicing advances	(279)		81
Other, net	134		(280)
Net cash used by investing activities	(2,132)		(7,082)
Cash flows from financing activities
Net increase in deposits	4,314		3,921
Net increase (decrease) in short-term borrowings	513		(521)
Proceeds from long-term borrowings	743		3,357
Payments on long-term borrowings	(2,950)		(49)
Purchases of treasury stock	(656)		—
Dividends paid — common	(225)		(221)
Dividends paid — preferred	(41)		(34)
Other, net	(1)		(15)
Net cash provided by financing activities	1,697		6,438
Net increase (decrease) in cash, cash equivalents and restricted cash	200		(36)
Cash, cash equivalents and restricted cash at beginning of period	1,909		1,731
Cash, cash equivalents and restricted cash at end of period	$	2,109	$	1,695
Supplemental disclosure of cash flow information
Interest received during the period	$	2,605	$	2,716
Interest paid during the period	933		999
Income taxes paid during the period	70		41
Supplemental schedule of noncash investing and financing activities
Real estate acquired in settlement of loans	5		19
Additions to right-of-use assets under operating leases	14		19

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)


(Dollars in millions, except per share)	Preferred Stock		Common Stock		Common Stock Issuable		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss), Net		Treasury Stock		Total
Three Months Ended March 31, 2025
Balance — January 1, 2025	$	2,394	$	90	$	1	$	9,998	$	19,079	$	(164)	$	(2,371)	$	29,027
Total comprehensive income	—		—		—		—		584		254		—		838


Preferred stock cash dividends	—		—		—		—		(36)		—		—		(36)
Purchases of treasury stock	—		—		—		—		—		—		(662)		(662)
Stock-based compensation transactions, net	—		—		—		(30)		—		—		76		46
Common stock cash dividends — $1.35 per share	—		—		—		—		(222)		—		—		(222)
Balance — March 31, 2025	$	2,394	$	90	$	1	$	9,968	$	19,405	$	90	$	(2,957)	$	28,991












Three Months Ended March 31, 2024
Balance — January 1, 2024	$	2,011	$	90	$	1	$	10,020	$	17,524	$	(459)	$	(2,230)	$	26,957
Total comprehensive income	—		—		—		—		531		(130)		—		401
Preferred stock cash dividends	—		—		—		—		(25)		—		—		(25)

Stock-based compensation transactions, net	—		—		—		(44)		—		—		98		54
Common stock cash dividends — $1.30 per share	—		—		—		—		(218)		—		—		(218)
Balance — March 31, 2024	$	2,011	$	90	$	1	$	9,976	$	17,812	$	(589)	$	(2,132)	$	27,169

See accompanying notes to financial statements.

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Notes to Financial Statements

1. Significant accounting policies

The consolidated interim financial statements of the Company were compiled in accordance with GAAP using the accounting policies set forth in note 1 of Notes to Financial Statements included in M&T's 2024 Annual Report. The financial statements contain all adjustments which are, in the opinion of management, necessary for a fair statement of the Company's financial position, results of operations and cash flows for the interim periods presented. Standards applicable to M&T but not yet adopted at March 31, 2025 primarily address enhanced disclosure requirements for income taxes and the disaggregated income statement presentation of certain expenses and are not expected to have a material impact to the Company's consolidated financial statements.

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2. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:


(Dollars in millions)	Amortized Cost (a)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2025
Investment securities available for sale:
U.S. Treasury	$	8,065	$	31	$	11	$	8,085
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,316		35		11		4,340
Residential	8,422		47		99		8,370
Other	4		—		—		4
	20,807		113		121		20,799
Investment securities held to maturity:
U.S. Treasury	442		—		10		432
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,035		—		114		1,921
Residential	8,547		—		800		7,747
Privately issued	36		8		—		44
State and political subdivisions	2,291		—		128		2,163
Other	1		—		—		1
	13,352		8		1,052		12,308
Total debt securities	$	34,159	$	121	$	1,173	$	33,107
Equity and other securities:
Readily marketable equity — at fair value	$	280	$	2	$	2	$	280
Other — at cost	706		—		—		706
Total equity and other securities	$	986	$	2	$	2	$	986

December 31, 2024
Investment securities available for sale:
U.S. Treasury	$	7,945	$	13	$	27	$	7,931
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	3,739		8		45		3,702
Residential	7,368		13		167		7,214
Other	2		—		—		2
	19,054		34		239		18,849
Investment securities held to maturity:
U.S. Treasury	1,015		—		14		1,001
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,034		—		157		1,877
Residential	8,773		—		961		7,812
Privately issued	37		9		—		46
State and political subdivisions	2,335		—		117		2,218
Other	1		—		—		1
	14,195		9		1,249		12,955
Total debt securities	$	33,249	$	43	$	1,488	$	31,804
Equity and other securities:
Readily marketable equity — at fair value	$	235	$	3	$	3	$	235
Other — at cost	772		—		—		772
Total equity and other securities	$	1,007	$	3	$	3	$	1,007

__________________________________________________________________________________

*(a)*Amortized cost balances of debt securities exclude accrued interest receivable of $168 million and $176 million at March 31, 2025 and December 31, 2024, respectively, which is included as Accrued interest and other assets in the Company's Consolidated Balance Sheet.

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2. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the three-month periods ended March 31, 2025 and 2024. Unrealized gains or losses on equity securities are included in Gain (loss) on bank investment securities in the Consolidated Statement of Income.

At March 31, 2025, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:


(Dollars in millions)	Amortized Cost		Estimated Fair Value
Debt securities available for sale:
Due in one year or less	$	3,155	$	3,154
Due after one year through five years	4,914		4,935
Due after five years through ten years	—		—
Due after ten years	—		—
	8,069		8,089
Mortgage-backed securities	12,738		12,710
	$	20,807	$	20,799
Debt securities held to maturity:
Due in one year or less	$	76	$	76
Due after one year through five years	614		601
Due after five years through ten years	1,459		1,396
Due after ten years	585		523
	2,734		2,596
Mortgage-backed securities	10,618		9,712
	$	13,352	$	12,308

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2. Investment securities, continued

A summary of investment securities that as of March 31, 2025 and December 31, 2024 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:


	Less Than 12 Months				12 Months or More
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2025
Investment securities available for sale:
U.S. Treasury	$	814	$	1	$	2,014	$	10
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	1,362		11		26		—
Residential	1,349		10		1,548		89
Other	1		—		2		—
	3,526		22		3,590		99
Investment securities held to maturity:
U.S. Treasury	50		—		382		10
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	—		—		1,921		114
Residential	764		5		6,761		795

State and political subdivisions	40		1		2,070		127
	854		6		11,134		1,046
Total	$	4,380	$	28	$	14,724	$	1,145

December 31, 2024
Investment securities available for sale:
U.S. Treasury	$	1,971	$	9	$	2,554	$	18
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,566		45		64		—
Residential	4,429		53		1,623		114
Other	—		—		2		—
	8,966		107		4,243		132
Investment securities held to maturity:
U.S. Treasury	50		—		951		14
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	—		—		1,877		157
Residential	996		19		6,811		942

State and political subdivisions	39		1		2,131		116
	1,085		20		11,770		1,229
Total	$	10,051	$	127	$	16,013	$	1,361

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2. Investment securities, continued

The Company owned 3,597 individual debt securities with aggregate gross unrealized losses of $1.2 billion at March 31, 2025. Based on a review of each of the securities in the investment securities portfolio at March 31, 2025, the Company concluded that it expected to recover the amortized cost basis of its investment. As of March 31, 2025, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At March 31, 2025, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $706 million of cost method equity securities.

The Company estimated no material allowance for credit losses for its investment securities classified as held-to-maturity at March 31, 2025 or December 31, 2024.

At March 31, 2025 and December 31, 2024, investment securities with carrying values of $6.1 billion (including $71 million related to repurchase transactions) and $6.2 billion (including $71 million related to repurchase transactions), respectively, were pledged to secure borrowings, lines of credit and governmental deposits.

3. Loans and leases and allowance for credit losses

A summary of current, past due and nonaccrual loans as of March 31, 2025 and December 31, 2024 follows:


(Dollars in millions)	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Nonaccrual		Total (a) (b)
March 31, 2025
Commercial and industrial	$	59,671	$	256	$	7	$	662	$	60,596
Real estate:
Commercial (c)	19,351		351		—		394		20,096
Residential builder and developer (d)	819		6		—		1		826
Other commercial construction	4,867		50		—		28		4,945
Residential (e)	22,053		579		368		284		23,284
Consumer:
Home equity lines and loans	4,450		28		—		78		4,556
Recreational finance	12,794		93		—		26		12,913
Automobile	5,064		52		—		11		5,127
Other	2,134		32		9		56		2,231
Total	$	131,203	$	1,447	$	384	$	1,540	$	134,574

December 31, 2024
Commercial and industrial	$	60,374	$	399	$	12	$	696	$	61,481
Real estate:
Commercial (c)	20,054		255		3		468		20,780
Residential builder and developer	830		3		—		2		835
Other commercial construction	5,018		65		—		66		5,149
Residential (e)	21,853		719		315		279		23,166
Consumer:
Home equity lines and loans	4,482		29		—		81		4,592
Recreational finance	12,429		104		—		31		12,564
Automobile	4,724		58		—		12		4,794
Other	2,134		23		8		55		2,220
Total	$	131,898	$	1,655	$	338	$	1,690	$	135,581

__________________________________________________________________________________

*(a)*Balances include net discounts, comprised of unamortized premiums, discounts and net deferred loan fees and costs of $265 million and $277 million at March 31, 2025 and December 31, 2024, respectively.

*(b)*Balances exclude accrued interest receivable of $603 million and $628 million at March 31, 2025 and December 31, 2024, respectively, which is included as Accrued interest and other assets in the Company's Consolidated Balance Sheet.

*(c)*Commercial real estate loans held for sale were $192 million at March 31, 2025 and $310 million at December 31, 2024.

*(d)*Residential builder and developer loans held for sale were $693 million at March 31, 2025.

*(e)*One-to-four family residential mortgage loans held for sale were $179 million at March 31, 2025 and $211 million at December 31, 2024.

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3. Loans and leases and allowance for credit losses, continued

The amount of foreclosed property held by the Company, predominantly consisting of residential real estate, was $34 million and $35 million at March 31, 2025 and December 31, 2024, respectively. There were $177 million and $173 million at March 31, 2025 and December 31, 2024, respectively, of loans secured by residential real estate that were in the process of foreclosure. Of all loans in the process of foreclosure at March 31, 2025, approximately 41% were government guaranteed.

At March 31, 2025, approximately $21.3 billion of commercial and industrial loans, $14.4 billion of commercial real estate loans, $18.6 billion of one-to-four family residential real estate loans, $2.7 billion of home equity loans and lines of credit and $12.7 billion of other consumer loans were pledged to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York. At December 31, 2024, approximately $20.7 billion of commercial and industrial loans, $14.6 billion of commercial real estate loans, $18.6 billion of one-to-four family residential real estate loans, $2.7 billion of home equity loans and lines of credit and $13.1 billion of other consumer loans were pledged to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York. As further described in notes 4 and 11, loans and leases totaling $2.1 billion and $1.5 billion at March 31, 2025 and December 31, 2024, respectively, were held in special purpose trusts to settle the obligations of certain asset-backed notes issued by those trusts which have been included in the Company's consolidated financial statements.

Credit quality indicators

The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. The following table summarizes the loan grades applied at March 31, 2025 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans and gross charge-offs for those types of loans for the three-month period ended March 31, 2025 by origination year.


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
(Dollars in millions)	2025		2024		2023		2022		2021		Prior
Commercial and industrial:
Pass	$	2,222	$	8,230	$	5,812	$	5,456	$	2,918	$	6,474	$	25,358	$	94	$	56,564
Criticized accrual	29		272		393		403		188		588		1,461		36		3,370
Criticized nonaccrual	—		11		66		102		41		270		154		18		662
Total commercial and industrial	$	2,251	$	8,513	$	6,271	$	5,961	$	3,147	$	7,332	$	26,973	$	148	$	60,596
Gross charge-offs three months ended March 31, 2025	$	—	$	3	$	8	$	9	$	2	$	5	$	23	$	—	$	50

Real estate:
Commercial:
Pass	$	538	$	402	$	1,492	$	1,310	$	1,196	$	11,051	$	447	$	—	$	16,436
Criticized accrual	—		39		352		560		279		2,029		7		—		3,266
Criticized nonaccrual	—		1		1		55		25		311		1		—		394
Total commercial real estate	$	538	$	442	$	1,845	$	1,925	$	1,500	$	13,391	$	455	$	—	$	20,096
Gross charge-offs three months ended March 31, 2025	$	—	$	—	$	—	$	—	$	—	$	22	$	—	$	—	$	22

Residential builder and developer:
Pass	$	124	$	327	$	171	$	41	$	11	$	14	$	66	$	—	$	754
Criticized accrual	1		18		22		30		—		—		—		—		71
Criticized nonaccrual	—		1		—		—		—		—		—		—		1
Total residential builder and developer	$	125	$	346	$	193	$	71	$	11	$	14	$	66	$	—	$	826
Gross charge-offs three months ended March 31, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial construction:
Pass	$	4	$	165	$	1,407	$	982	$	213	$	500	$	39	$	—	$	3,310
Criticized accrual	—		2		126		729		309		435		6		—		1,607
Criticized nonaccrual	—		—		1		16		1		10		—		—		28
Total other commercial construction	$	4	$	167	$	1,534	$	1,727	$	523	$	945	$	45	$	—	$	4,945
Gross charge-offs three months ended March 31, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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3. Loans and leases and allowance for credit losses, continued

The Company considers repayment performance a significant indicator of credit quality for its residential real estate loan and consumer loan portfolios. A summary of loans in accrual and nonaccrual status at March 31, 2025 for the various classes of the Company’s residential real estate loans and consumer loans and gross charge-offs for those types of loans for the three-month period ended March 31, 2025 by origination year follows:


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
(Dollars in millions)	2025		2024		2023		2022		2021		Prior
Residential real estate:
Current	$	776	$	2,031	$	1,317	$	4,347	$	3,432	$	10,044	$	106	$	—	$	22,053
30-89 days past due	—		11		15		94		62		397		—		—		579
Accruing loans past due 90 days or more	—		3		12		44		75		234		—		—		368
Nonaccrual	—		1		4		38		17		222		2		—		284
Total residential real estate	$	776	$	2,046	$	1,348	$	4,523	$	3,586	$	10,897	$	108	$	—	$	23,284
Gross charge-offs three months ended March 31, 2025	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	—	$	2


Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	—	$	1	$	88	$	3,065	$	1,296	$	4,450
30-89 days past due	—		—		—		—		—		1		—		27		28
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		3		—		75		78
Total home equity lines and loans	$	—	$	—	$	—	$	—	$	1	$	92	$	3,065	$	1,398	$	4,556
Gross charge-offs three months ended March 31, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	1

Recreational finance:
Current	$	995	$	3,701	$	2,075	$	1,956	$	1,589	$	2,478	$	—	$	—	$	12,794
30-89 days past due	1		13		17		15		16		31		—		—		93
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		4		6		4		4		8		—		—		26
Total recreational finance	$	996	$	3,718	$	2,098	$	1,975	$	1,609	$	2,517	$	—	$	—	$	12,913
Gross charge-offs three months ended March 31, 2025	$	—	$	5	$	8	$	7	$	7	$	13	$	—	$	—	$	40

Automobile:
Current	$	471	$	2,250	$	772	$	715	$	582	$	274	$	—	$	—	$	5,064
30-89 days past due	—		13		13		11		9		6		—		—		52
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		3		2		2		2		2		—		—		11
Total automobile	$	471	$	2,266	$	787	$	728	$	593	$	282	$	—	$	—	$	5,127
Gross charge-offs three months ended March 31, 2025	$	—	$	3	$	3	$	3	$	2	$	1	$	—	$	—	$	12

Other:
Current	$	103	$	222	$	134	$	90	$	64	$	30	$	1,490	$	1	$	2,134
30-89 days past due	2		2		2		1		—		—		24		1		32
Accruing loans past due 90 days or more	—		—		—		—		—		—		9		—		9
Nonaccrual	1		1		1		1		—		—		52		—		56
Total other	$	106	$	225	$	137	$	92	$	64	$	30	$	1,575	$	2	$	2,231
Gross charge-offs three months ended March 31, 2025	$	1	$	6	$	3	$	1	$	1	$	1	$	20	$	—	$	33

Total loans and leases at March 31, 2025	$	5,267	$	17,723	$	14,213	$	17,002	$	11,034	$	35,500	$	32,287	$	1,548	$	134,574
Total gross charge-offs for the three months ended March 31, 2025	$	1	$	17	$	22	$	20	$	12	$	44	$	43	$	1	$	160

- 16 -

3. Loans and leases and allowance for credit losses, continued

The following table summarizes the loan grades applied at December 31, 2024 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans by origination year.


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	2024		2023		2022		2021		2020		Prior				Total
Commercial and industrial:
Pass	$	9,021	$	6,454	$	5,845	$	3,258	$	1,534	$	5,147	$	26,262	$	79	$	57,600
Criticized accrual	189		385		402		210		75		528		1,359		37		3,185
Criticized nonaccrual	11		56		98		41		59		220		194		17		696
Total commercial and industrial	$	9,221	$	6,895	$	6,345	$	3,509	$	1,668	$	5,895	$	27,815	$	133	$	61,481
Real estate:
Commercial:
Pass	$	674	$	1,477	$	1,358	$	1,222	$	1,774	$	9,611	$	413	$	—	$	16,529
Criticized accrual	39		389		665		253		591		1,839		7		—		3,783
Criticized nonaccrual	1		1		53		26		17		369		1		—		468
Total commercial real estate	$	714	$	1,867	$	2,076	$	1,501	$	2,382	$	11,819	$	421	$	—	$	20,780
Residential builder and developer:
Pass	$	380	$	236	$	40	$	12	$	4	$	10	$	60	$	—	$	742
Criticized accrual	15		42		34		—		—		—		—		—		91
Criticized nonaccrual	1		—		—		—		—		1		—		—		2
Total residential builder and developer	$	396	$	278	$	74	$	12	$	4	$	11	$	60	$	—	$	835
Other commercial construction:
Pass	$	108	$	1,395	$	1,091	$	269	$	175	$	379	$	42	$	—	$	3,459
Criticized accrual	42		104		687		346		297		145		3		—		1,624
Criticized nonaccrual	—		—		17		33		—		16		—		—		66
Total other commercial construction	$	150	$	1,499	$	1,795	$	648	$	472	$	540	$	45	$	—	$	5,149

- 17 -

3. Loans and leases and allowance for credit losses, continued

A summary of loans in accrual and nonaccrual status at December 31, 2024 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows:


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
(Dollars in millions)	2024		2023		2022		2021		2020		Prior
Residential real estate:
Current	$	2,264	$	1,354	$	4,394	$	3,488	$	2,376	$	7,874	$	103	$	—	$	21,853
30-89 days past due	12		9		111		77		38		472		—		—		719
Accruing loans past due 90 days or more	1		7		39		47		20		201		—		—		315
Nonaccrual	—		2		27		16		5		226		3		—		279
Total residential real estate	$	2,277	$	1,372	$	4,571	$	3,628	$	2,439	$	8,773	$	106	$	—	$	23,166
Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	2	$	2	$	91	$	3,085	$	1,302	$	4,482
30-89 days past due	—		—		—		—		—		2		—		27		29
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		2		—		79		81
Total home equity lines and loans	$	—	$	—	$	—	$	2	$	2	$	95	$	3,085	$	1,408	$	4,592
Recreational finance:
Current	$	3,918	$	2,203	$	2,044	$	1,661	$	1,100	$	1,503	$	—	$	—	$	12,429
30-89 days past due	13		18		15		20		15		23		—		—		104
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	3		6		6		5		4		7		—		—		31
Total recreational finance	$	3,934	$	2,227	$	2,065	$	1,686	$	1,119	$	1,533	$	—	$	—	$	12,564
Automobile:
Current	$	2,264	$	775	$	740	$	632	$	220	$	93	$	—	$	—	$	4,724
30-89 days past due	11		13		13		12		5		4		—		—		58
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	2		2		3		2		1		2		—		—		12
Total automobile	$	2,277	$	790	$	756	$	646	$	226	$	99	$	—	$	—	$	4,794
Other:
Current	$	259	$	152	$	102	$	71	$	16	$	18	$	1,515	$	1	$	2,134
30-89 days past due	4		2		1		1		—		—		14		1		23
Accruing loans past due 90 days or more	—		—		—		—		—		—		8		—		8
Nonaccrual	2		1		1		—		—		—		51		—		55
Total other	$	265	$	155	$	104	$	72	$	16	$	18	$	1,588	$	2	$	2,220
Total loans and leases at December 31, 2024	$	19,234	$	15,083	$	17,786	$	11,704	$	8,328	$	28,783	$	33,120	$	1,543	$	135,581

- 18 -

3. Loans and leases and allowance for credit losses, continued

Allowance for credit losses

For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolios by type. Changes in the allowance for credit losses for the three months ended March 31, 2025 and 2024 were as follows:


	Commercial and Industrial			Real Estate
(Dollars in millions)			Commercial			Residential			Consumer			Total
Three Months Ended March 31, 2025
Beginning balance	$	769		$	599		$	108		$	708		$	2,184
Provision for credit losses	22			30			(3)			81			130
Net charge-offs:
Charge-offs	(50)			(22)			(2)			(86)			(160)
Recoveries	21			3			2			20			46
Net charge-offs	(29)			(19)			—			(66)			(114)
Ending balance	$	762		$	610		$	105		$	723		$	2,200

Three Months Ended March 31, 2024
Beginning balance	$	620		$	764		$	116		$	629		$	2,129
Provision for credit losses	137			9			2			52			200
Net charge-offs:
Charge-offs	(78)			(25)			(1)			(59)			(163)
Recoveries	5			6			1			13			25
Net charge-offs	(73)			(19)			—			(46)			(138)
Ending balance	$	684		$	754		$	118		$	635		$	2,191

Despite the allocation in the preceding tables, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type. In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company utilizes statistically developed models to project principal balances over the remaining contractual lives of the loan portfolios and to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including loan grade and borrower repayment performance, can inform the models, which have been statistically developed based on historical correlations of credit losses with prevailing economic metrics, including unemployment, GDP and real estate prices. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At each of March 31, 2025 and December 31, 2024, the Company utilized a reasonable and supportable forecast period of two years. Subsequent to this forecast period the Company reverted, ratably over a one-year period, to historical loss experience to inform its estimate of losses for the remaining contractual life of each portfolio. In determining the allowance for credit losses, the Company may adjust forecasted loss estimates for inherent limitations or biases in the models as well as for other factors that may not be adequately considered in its quantitative methodologies including the impact of portfolio concentrations, imprecision in its economic forecasts, geopolitical conditions and other risk factors that might influence its loss estimation process.

The Company also estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes. The amounts of specific loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial and industrial loans and commercial real estate loans that are in nonaccrual status. Such loss estimates are typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. To the extent that those loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of designating the loan as “criticized nonaccrual,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or

- 19 -

3. Loans and leases and allowance for credit losses, continued

the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in values as determined by line of business and/or loan workout personnel. Those adjustments are reviewed and assessed for reasonableness by the Company’s credit risk personnel. Accordingly, for real estate collateral securing larger nonaccrual commercial and industrial loans and commercial real estate loans, estimated collateral values are generally based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs.

For residential real estate 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. When evaluating individual home equity loans and lines of credit for charge-off and for purposes of estimating losses in determining the allowance for credit losses, the Company gives consideration to the required repayment of any first lien positions related to collateral property. Other consumer loans are generally charged-off when the loans are 91 to 180 days past due, depending on whether the loan is collateralized and the status of repossession activities with respect to such collateral.

Changes in the amount of the allowance for credit losses reflect the outcome of the procedures described herein, including the impact of changes in macroeconomic forecasts as compared with previous forecasts, as well as the impact of portfolio concentrations, imprecision in economic forecasts, geopolitical conditions and other risk factors that might influence the loss estimation process.

The Company’s reserve for off-balance sheet credit exposures was not material at March 31, 2025 and December 31, 2024.

- 20 -

3. Loans and leases and allowance for credit losses, continued

Information with respect to loans and leases that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the three-month periods ended March 31, 2025 and 2024 follows:


	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized
(Dollars in millions)	March 31, 2025						January 1, 2025		Three Months Ended March 31, 2025
Commercial and industrial	$	522	$	140	$	662	$	696	$	6
Real estate:
Commercial	341		53		394		468		7
Residential builder and developer	1		—		1		2		—
Other commercial construction	23		5		28		66		—
Residential	135		149		284		279		3

Consumer:
Home equity lines and loans	36		42		78		81		2
Recreational finance	17		9		26		31		—
Automobile	8		3		11		12		—
Other	56		—		56		55		—
Total	$	1,139	$	401	$	1,540	$	1,690	$	18


(Dollars in millions)	March 31, 2024						January 1, 2024		Three Months Ended March 31, 2024
Commercial and industrial	$	590	$	274	$	864	$	670	$	2
Real estate:
Commercial	379		476		855		869		6
Residential builder and developer	3		—		3		3		—
Other commercial construction	33		108		141		171		—
Residential	100		155		255		270		4

Consumer:
Home equity lines and loans	48		39		87		81		1
Recreational finance	18		12		30		36		—
Automobile	7		6		13		14		—
Other	54		—		54		52		—
Total	$	1,232	$	1,070	$	2,302	$	2,166	$	13

- 21 -

3. Loans and leases and allowance for credit losses, continued

Loan modifications

During the normal course of business, the Company modifies loans to maximize recovery efforts from borrowers experiencing financial difficulty. Such loan modifications typically include extensions of maturity dates but may also include other modified terms. Those modified loans may be considered nonaccrual if the Company does not expect to collect the contractual cash flows owed under the loan agreement. The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month periods ended March 31, 2025 and 2024:


	Amortized Cost
(Dollars in millions)	Term Extension		Other (a)		Combination of Modification Types (b)		Total (c) (d)		Percent of Total Loan Class
Three Months Ended March 31, 2025
Commercial and industrial	$	35	$	2	$	74	$	111	.18	%
Real estate:
Commercial	131		—		—		131		.65
Residential builder and developer	—		—		—		—		—
Other commercial construction	225		—		—		225		4.53
Residential	40		3		7		50		.22

Consumer:
Home equity lines and loans	—		—		—		—		—
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	431	$	5	$	81	$	517	.38	%

Three Months Ended March 31, 2024
Commercial and industrial	$	139	$	45	$	—	$	184	.32	%
Real estate:
Commercial	267		—		3		270		1.07
Residential builder and developer	2		—		—		2		.18
Other commercial construction	131		—		—		131		2.11
Residential	45		5		1		51		.22
Consumer:
Home equity lines and loans	—		—		—		—		—
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	584	$	50	$	4	$	638	.47	%

__________________________________________________________________________________

*(a)*Predominantly payment deferrals.

*(b)*Predominantly term extensions combined with payment deferrals or interest rate reductions for the three-month periods ended March 31, 2025 and 2024, respectively.

*(c)*Includes approximately $36 million and $44 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month periods ended March 31, 2025 and 2024, respectively.

*(d)*Excludes unfunded commitments to extend credit totaling $9 million and $29 million for the three-month periods ended March 31, 2025 and 2024, respectively.

- 22 -

3. Loans and leases and allowance for credit losses, continued

The financial effects of the modifications for the three-month periods ended March 31, 2025 and 2024 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.8 years and 0.7 years, respectively, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 0.8 years for each period, and for residential real estate loans of 9.0 years and 11.4 years, respectively.

Modified loans to borrowers experiencing financial difficulty are subject to the allowance for credit losses methodology described herein, including the use of models to inform credit loss estimates and, to the extent larger balance commercial and industrial loans and commercial real estate loans are in nonaccrual status, a loan-by-loan analysis of expected credit losses on those individual loans. The following table summarizes the payment status, at March 31, 2025 and 2024, of loans that were modified during the twelve-month period ended March 31, 2025 and 2024.


	Payment Status (Amortized Cost) (a)
(Dollars in millions)	Current		30-89 Days Past Due		Past Due 90 Days or More (b)		Total
Twelve Months Ended March 31, 2025
Commercial and industrial	$	293	$	3	$	17	$	313
Real estate:
Commercial	419		49		—		468
Residential builder and developer	1		—		—		1
Other commercial construction	289		30		9		328
Residential (c)	104		35		41		180

Consumer:
Home equity lines and loans	1		—		—		1
Recreational finance	1		—		—		1
Automobile	—		—		—		—
Other	—		—		—		—
Total	$	1,108	$	117	$	67	$	1,292




Twelve Months Ended March 31, 2024
Commercial and industrial	$	310	$	7	$	10	$	327
Real estate:
Commercial	715		33		24		772
Residential builder and developer	14		39		—		53
Other commercial construction	534		5		—		539
Residential (c)	118		37		30		185

Consumer:
Home equity lines and loans	2		—		—		2
Recreational finance	—		—		—		—
Automobile	—		—		—		—
Other	—		—		—		—
Total	$	1,693	$	121	$	64	$	1,878

__________________________________________________________________________________

(a) As of respective period end.

(b) Predominantly loan modifications with term extensions.

(c) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $29 million and $30 million and as past due 90 days or more of $34 million and $27 million at March 31, 2025 and 2024, respectively.

- 23 -

4. Borrowings


(Dollars in millions)	March 31, 2025		December 31, 2024
Short-term borrowings
Repurchase agreements	$	73	$	60
Advances from FHLB	1,500		1,000
Total short-term borrowings	$	1,573	$	1,060

Long-term borrowings
Senior notes — M&T	$	4,796	$	4,710
Senior notes — M&T Bank	2,996		3,745
Advances from FHLB	4		2,004
Subordinated notes — M&T Bank	481		474
Junior subordinated debentures — M&T (a)	402		433
Asset-backed notes (a)	1,807		1,229
Other	10		10
Total long-term borrowings	$	10,496	$	12,605

__________________________________________________________________________________

(a) Further information about Junior Subordinated Debentures and asset-backed note financing transactions is provided in note 11.

M&T Bank had secured borrowing facilities available with the FHLB of New York and the FRB of New York totaling approximately $18.6 billion and $24.7 billion, respectively, at March 31, 2025. M&T Bank is required to pledge loans and investment securities as collateral for these borrowing facilities and could increase the availability under such facilities by pledging additional assets.

- 24 -

5. Shareholders' equity

M&T is authorized to issue 20,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence. Issued and outstanding preferred stock of M&T as of March 31, 2025 and December 31, 2024 is presented below:


(Dollars in millions, except per share)	Shares Issued and Outstanding		Liquidation Preference Per Share		Issuance Date	Earliest Redemption Date	Annual Dividend Rate		Carrying Amount				Dividends Per Share
													Three Months Ended March 31,
Series	March 31, 2025	December 31, 2024							March 31, 2025		December 31, 2024		2025		2024
Series E (a)	—	—	$	1,000	—	—	—	%	$	—	$	—	$	—	$	16.125
Series F (b)	50,000	50,000	10,000		10/28/2016	11/1/2026	5.125		500		500		128.125		128.125
Series G (c)	40,000	40,000	10,000		7/30/2019	8/1/2024	7.304		400		400		182.60		125.00
Series H (d)	10,000,000	10,000,000	25		4/1/2022	4/1/2027	5.625		261		261		0.3516		0.3516
Series I (e)	50,000	50,000	10,000		8/17/2021	9/1/2026	3.500		500		500		87.50		87.50
Series J (f)	75,000	75,000	10,000		5/13/2024	6/15/2029	7.500		733		733		187.50		—
Total	10,215,000	10,215,000							$	2,394	$	2,394

__________________________________________________________________________________

*(a)*On August 15, 2024, M&T redeemed all outstanding shares of the Series E Preferred Stock.

*(b)*Dividends, if declared, are paid semi-annually at a rate of 5.125% through October 31, 2026 and thereafter will be paid quarterly at a rate of the three-month SOFR plus 378 basis points.

*(c)*Dividends, if declared, were paid semi-annually at a rate of 5.0% through July 31, 2024. On August 1, 2024, the dividend rate reset at 7.304% and will reset at each subsequent five year anniversary date therefrom at a rate of the five-year U.S. Treasury rate plus 3.174%.

*(d)*Dividends, if declared, are paid quarterly at a rate of 5.625% through December 14, 2026 and thereafter will be paid quarterly at a rate of the three-month SOFR rate plus 428 basis points.

*(e)*Dividends, if declared, are paid semi-annually at a rate of 3.5% through August 31, 2026. On September 1, 2026 and at each subsequent five year anniversary date therefrom the dividend rate will reset at a rate of the five-year U.S. Treasury rate plus 2.679%.

*(f)*Dividends, if declared, are paid quarterly at a rate of 7.5%.

- 25 -

6. Revenue from contracts with customers

The Company generally charges customer accounts or otherwise bills customers upon completion of its services. Typically, the Company’s contracts with customers have a duration of one year or less and payment for services is received at least annually, but oftentimes more frequently as services are provided. At March 31, 2025 and December 31, 2024, the Company had $68 million and $72 million, respectively, of amounts receivable related to recognized revenue from the sources in the accompanying tables. Such amounts are classified in Accrued interest and other assets in the Consolidated Balance Sheet. In certain situations the Company is paid in advance of providing services and defers the recognition of revenue until its service obligation is satisfied. At March 31, 2025 and December 31, 2024, the Company had deferred revenue of $55 million and $57 million, respectively, related to the sources in the accompanying tables recorded in Accrued interest and other liabilities in the Consolidated Balance Sheet. The following tables summarize sources of the Company’s noninterest income during the three-month periods ended March 31, 2025 and 2024 that are subject to the revenue recognition accounting guidance.


(Dollars in millions)	Commercial Bank		Retail Bank		Institutional Services and Wealth Management		Total
Three Months Ended March 31, 2025
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	45	$	88	$	—	$	133
Trust income	1		—		176		177
Brokerage services income	1		—		31		32
Other revenues from operations:
Merchant discount and credit card interchange fees	16		21		—		37
Other	9		7		2		18
	$	72	$	116	$	209	$	397

Three Months Ended March 31, 2024
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	40	$	84	$	—	$	124
Trust income	1		—		159		160
Brokerage services income	2		—		27		29
Other revenues from operations:
Merchant discount and credit card interchange fees	17		20		—		37
Other	8		7		2		17
	$	68	$	111	$	188	$	367

7. Pension plans and other postretirement benefits

The Company provides defined pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic benefit for defined benefit plans consisted of the following:


	Pension Benefits				Other Postretirement Benefits
	Three Months Ended March 31,
(Dollars in millions)	2025		2024		2025		2024
Service cost	$	2	$	2	$	—	$	—
Interest cost on projected benefit obligation	27		29		1		1
Expected return on plan assets	(46)		(51)		—		—

Amortization of net actuarial gain	(1)		—		(1)		(1)
Net periodic benefit	$	(18)	$	(20)	$	—	$	—

Service cost is reflected in Salaries and employee benefits and the other components of net periodic benefit cost are reflected in Other costs of operations in the Consolidated Statement of Income. Expenses incurred in connection with the Company's defined contribution pension and retirement savings plans totaled $50 million and $45 million for the three months ended March 31, 2025 and 2024, respectively.

- 26 -

8. Earnings per common share

The computations of basic earnings per common share follow:


	Three Months Ended March 31,
(Dollars in millions, except per share, shares in thousands)	2025		2024
Income available to common shareholders:
Net income	$	584	$	531
Less: Preferred stock dividends	(36)		(25)
Net income available to common equity	548		506
Less: Income attributable to unvested stock-based compensation awards	(1)		(1)
Net income available to common shareholders	$	547	$	505
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	164,520		166,738
Less: Unvested stock-based compensation awards	(311)		(278)
Weighted-average shares outstanding	164,209		166,460

Basic earnings per common share	$	3.33	$	3.04

The computations of diluted earnings per common share follow:


	Three Months Ended March 31,
(Dollars in millions, except per share, shares in thousands)	2025		2024
Net income available to common equity	$	548	$	506
Less: Income attributable to unvested stock-based compensation awards	(1)		(1)
Net income available to common shareholders	$	547	$	505
Adjusted weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	164,520		166,738
Less: Unvested stock-based compensation awards	(311)		(278)
Plus: Incremental shares from assumed conversion of stock-based compensation awards	838		624
Adjusted weighted-average shares outstanding	165,047		167,084

Diluted earnings per common share	$	3.32	$	3.02

Stock-based compensation awards to purchase common stock of M&T representing common shares of 145,460 and 1,328,190 during the three-month period ended March 31, 2025 and 2024, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

- 27 -

9. Comprehensive income

The following tables display the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:


(Dollars in millions)	Investment Securities		Cash Flow Hedges		Defined Benefit Plans		Other		Total Amount Before Tax			Income Tax		Net
Balance — January 1, 2025	$	(205)	$	(135)	$	131	$	(10)	$	(219)		$	55	$	(164)
Other comprehensive income (loss) before reclassifications:
Unrealized holding gains, net	197		—		—		—		197			(50)		147
Unrealized gains on cash flow hedges	—		91		—		—		91			(23)		68
Other	—		—		—		1		1			—		1

Total other comprehensive income (loss) before reclassifications	197		91		—		1		289			(73)		216
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:

Net yield adjustment from cash flow hedges currently in effect	—		53		—		—		53		(a)	(13)		40

Amortization of actuarial gains	—		—		(2)		—		(2)		(b)	—		(2)

Total other comprehensive income (loss)	197		144		(2)		1		340			(86)		254
Balance — March 31, 2025	$	(8)	$	9	$	129	$	(9)	$	121		$	(31)	$	90


Balance — January 1, 2024	$	(251)	$	(203)	$	(155)	$	(7)	$	(616)		$	157	$	(459)
Other comprehensive income (loss) before reclassifications:
Unrealized holding losses, net	(13)		—		—		—		(13)			2		(11)
Unrealized losses on cash flow hedges	—		(243)		—		—		(243)			60		(183)
Other	—		—		—		(2)		(2)			—		(2)

Total other comprehensive income (loss) before reclassifications	(13)		(243)		—		(2)		(258)			62		(196)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:


Losses realized in net income	1		—		—		—		1			—		1
Net yield adjustment from cash flow hedges currently in effect	—		87		—		—		87		(a)	(21)		66

Amortization of actuarial gains	—		—		(1)		—		(1)		(b)	—		(1)
Total other comprehensive income (loss)	(12)		(156)		(1)		(2)		(171)			41		(130)
Balance — March 31, 2024	$	(263)	$	(359)	$	(156)	$	(9)	$	(787)		$	198	$	(589)

__________________________________________________________________________________

*(a)*Included in Interest income in the Consolidated Statement of Income.

*(b)*Included in Other costs of operations in the Consolidated Statement of Income.

Accumulated other comprehensive income (loss), net consisted of the following:


(Dollars in millions)	Investment Securities		Cash Flow Hedges		Defined Benefit Plans		Other		Total
Balance — December 31, 2024	$	(153)	$	(101)	$	98	$	(8)	$	(164)
Net gain (loss) during period	147		108		(2)		1		254
Balance — March 31, 2025	$	(6)	$	7	$	96	$	(7)	$	90

- 28 -

10. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting, collateral and/or settlement provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting, collateral or settlement provisions, the Company believes that the credit risk inherent in these contracts was not material as of March 31, 2025.

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:


	Notional Amount		Weighted-Average Maturity (In years)	Weighted- Average Rate				Estimated Fair Value Gain (Loss) (a)
(Dollars in millions)			Fixed	Variable
March 31, 2025
Fair value hedges:
Fixed rate long-term borrowings (b) (d)	$	5,350	5.6	3.55	%	4.43	%	$	9

Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (e)	27,469		1.5	3.54		4.33		3
Total	$	32,819	2.2					$	12
December 31, 2024
Fair value hedges:
Fixed rate long-term borrowings (b) (f)	$	5,350	5.9	3.55	%	4.71	%	$	(2)
Fixed rate investment securities available for sale (c)	15		0.1	4.84		4.36		—
Cash flow hedges:
Interest payments on variable rate commercial real estate loans (b) (g)	30,819		1.6	3.41		4.47		1
Total	$	36,184	2.2					$	(1)

__________________________________________________________________________________

*(a)*Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $71 million and of losses of $153 million at March 31, 2025 and December 31, 2024, respectively. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of gains of $6 million and of losses of $136 million at March 31, 2025 and December 31, 2024, respectively.

*(b)*Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

*(c)*Under the terms of these agreements, the Company receives settlement amounts at a variable rate and pays at a fixed rate.

*(d)*Includes notional amount and terms of $2.5 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

*(e)*Includes notional amount and terms of $8.5 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

*(f)*Includes notional amount and terms of $3.4 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

*(g)*Includes notional amount and terms of $10.0 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. Changes in unrealized gains and losses as a result of such activities were not material for the three months ended March 31, 2025 and 2024. Such changes are included in Mortgage banking revenues in the Company's Consolidated Statement of Income and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied.

Other derivative financial instruments not designated as hedging instruments included interest rate contracts, foreign exchange and other option and futures contracts. Interest rate contracts not designated as hedging instruments had notional values of $40.8 billion and $40.5 billion at March 31, 2025 and December 31, 2024, respectively. The notional amounts of foreign currency and other option and futures contracts not designated as hedging instruments aggregated $1.5 billion and $1.6 billion at March 31, 2025 and December 31, 2024, respectively.

- 29 -

10. Derivative financial instruments, continued

Information about the fair values of derivative instruments in the Company’s Consolidated Balance Sheet and Consolidated Statement of Income follows:


	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
(Dollars in millions)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements	$	12	$	2	$	—	$	3
Commitments to sell real estate loans	1		4		1		—
	13		6		1		3
Derivatives not designated and qualifying as hedging instruments (a)
Mortgage banking:
Commitments to originate real estate loans for sale	17		4		25		32
Commitments to sell real estate loans	28		39		6		—
	45		43		31		32
Other:
Interest rate contracts (b)	166		185		589		769
Foreign exchange and other option and futures contracts	15		21		11		18
	181		206		600		787
Total derivatives	$	239	$	255	$	632	$	822

__________________________________________________________________________________

*(a)*Asset derivatives are reported in Accrued interest and other assets and liability derivatives are reported in Accrued interest and other liabilities in the Consolidated Balance Sheet.

*(b)*The impact of variation margin payments at March 31, 2025 and December 31, 2024 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $533 million and $686 million, respectively, and in a liability position of $27 million and $15 million, respectively.


	Amount of Gain (Loss) Recognized
	Three Months Ended March 31,
	2025				2024
(Dollars in millions)	Derivative		Hedged Item		Derivative		Hedged Item
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	93	$	(92)	$	(60)	$	60


Derivatives not designated as hedging instruments
Interest rate contracts (b)	$	5			$	3
Foreign exchange and other option and futures contracts (b)	4				4
Total	$	9			$	7

__________________________________________________________________________________

*(a)*Reported as an adjustment to Interest expense in the Consolidated Statement of Income.

*(b)*Reported as Trading account and other non-hedging derivative gains in the Consolidated Statement of Income.


	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
(Dollars in millions)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges
Long-term borrowings	$	5,277	$	5,184	$	(63)	$	(155)
Investment securities available for sale			381				—

- 30 -

10. Derivative financial instruments, continued

The net effect of interest rate swap agreements was to decrease net interest income by $62 million and $100 million during the three-month periods ended March 31, 2025 and 2024, respectively. The amount of interest income recognized in the Consolidated Statement of Income associated with derivatives designated as cash flow hedges was a decrease of $53 million and $87 million for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, the unrealized gain recognized in other comprehensive income related to cash flow hedges was $9 million, of which losses of $15 million and $12 million, gains of $39 million, and losses of $3 million relate to interest rate swap agreements maturing in 2025, 2026, 2027 and 2028, respectively.

The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting or settlement requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions.

The Company primarily clears non-customer derivative transactions through a clearinghouse, rather than directly with counterparties. The transactions cleared through a clearinghouse require initial margin collateral and variation margin payments depending on the contracts being in a net asset or liability position. The amount of initial margin collateral posted by the Company was $240 million and $257 million at March 31, 2025 and December 31, 2024, respectively. The fair value asset and liability amounts of derivative contracts have been reduced by variation margin payments treated as settlements as described herein. Variation margin on derivative contracts not treated as settlements continues to represent collateral posted or received by the Company.

The aggregate fair value of derivative financial instruments in a liability position, which are subject to enforceable master netting arrangements, and the related collateral posted, was not material at each of March 31, 2025 and December 31, 2024. Certain of the Company's derivative financial instruments contain provisions that require the Company to maintain specific credit ratings from credit rating agencies to avoid higher collateral posting requirements. If the Company’s debt ratings were to fall below specified ratings, the counterparties of the derivative financial instruments could demand immediate incremental collateralization on those instruments in a net liability position. The aggregate fair value of all derivative financial instruments with such credit risk-related contingent features in a net liability position at March 31, 2025 was not material.

The aggregate fair value of derivative financial instruments in an asset position with counterparties, which are subject to enforceable master netting arrangements was $105 million and $157 million at March 31, 2025 and December 31, 2024, respectively. Counterparties posted collateral relating to those positions of $106 million and $157 million at March 31, 2025 and December 31, 2024, respectively. Interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and often contain collateral provisions.

11. Variable interest entities and asset securitizations

The Company’s securitization activity includes securitizing loans originated for sale into government-issued or guaranteed mortgage-backed securities. The Company has not recognized any material losses as a result of having securitized assets.

In February 2025, M&T Bank issued asset-backed notes secured by automobile loans. Approximately $767 million of such loans were sold into a special purpose trust which in turn issued asset-backed notes to investors. The loans continue to be serviced by the Company. A total of $746 million of such notes, representing the senior-most notes in the securitization, were purchased by third parties. Those asset-backed notes had a weighted-average estimated life of approximately two years and a weighted-average interest rate of 4.74% at the time of securitization. Additionally, the residual interests of the trust were retained by the Company. As a result of the retention of the residual interests and its continued role as servicer of the loans, the Company is considered to be the primary beneficiary of the securitization trust and, accordingly, the trust has been included in the Company's consolidated financial statements. In three transactions prior to 2025, M&T Bank and its subsidiaries issued asset-backed notes secured by either equipment finance loans and leases or by automobile loans. Those loans and leases were also sold into special

- 31 -

11. Variable interest entities and asset securitizations, continued

purpose trusts which in turn issued asset-backed notes to investors. The loans and leases continue to be serviced by the Company. The senior-most notes in those securitizations were purchased by third parties whereas the residual interests of the trusts were retained by the Company. As a result of the retention of the residual interests and its continued role as servicer of the loans and leases, the Company is considered to be the primary beneficiary of the securitization trusts and, accordingly, the trusts have been included in the Company's consolidated financial statements. At March 31, 2025, the remaining balance of the loans and leases in securitization trusts were $2.1 billion and the outstanding asset-backed notes issued to third party investors were $1.8 billion. As presented in note 4, the asset-backed notes are included in Long-term borrowings in the Consolidated Balance Sheet.

M&T has issued Junior Subordinated Debentures payable to various trusts that have issued Preferred Capital Securities and Common Securities. M&T owns the Common Securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At each of March 31, 2025 and December 31, 2024, the Company included the Junior Subordinated Debentures as Long-term borrowings in the Consolidated Balance Sheet and recognized $16 million and $17 million, respectively, in Accrued interest and other assets for its “investment” in the Common Securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the Junior Subordinated Debentures associated with the Preferred Capital Securities.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $10.6 billion and $10.5 billion at March 31, 2025 and December 31, 2024, respectively. Those partnerships generally construct or acquire properties, including properties and facilities that produce renewable energy, for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. The Company, in its position as a limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, the partnership entities are not included in the Company's consolidated financial statements. The Company’s investments in qualified affordable housing projects are accounted for using the proportional amortization method whereby those investments are amortized to Income taxes in the Consolidated Statement of Income as tax credits and other tax benefits resulting from deductible losses associated with the projects are received. The Company has elected to apply the proportional amortization method to eligible renewable energy and certain other tax credit investments in addition to the low income housing tax credit investments for which the proportional amortization method had previously been applied. Information on the Company's carrying amount of its investments in tax equity partnerships and its related future funding commitments are presented in the following table:


(Dollars in millions)	March 31, 2025		December 31, 2024
Affordable housing projects:
Carrying amount (a)	$	1,398	$	1,384
Amount of future funding commitments included in carrying amount (b)	476		467
Contingent commitments	72		69
Renewable energy:
Carrying amount (a)	92		135
Amount of future funding commitments included in carrying amount (b)	66		46
Other:
Carrying amount (a)	36		37
Amount of future funding commitments included in carrying amount	—		—

__________________________________________________________________________________

*(a)*Included in Accrued interest and other assets in the Consolidated Balance Sheet.

*(b)*Included in Accrued interest and other liabilities in the Consolidated Balance Sheet.

- 32 -

11. Variable interest entities and asset securitizations, continued

The reduction to income tax expense recognized from the Company's investments in partnerships accounted for using the proportional amortization method was $9 million (net of $44 million of investment amortization) and $7 million (net of $43 million of investment amortization) for the three months ended March 31, 2025 and 2024, respectively. The net reduction to income tax expense has been reported in Net change in other accrued income and expense in the Consolidated Statement of Cash Flows. While the Company has elected to apply the proportional amortization method for renewable energy credit investments, at March 31, 2025 no such investments met the eligibility criteria for application of that method. The reduction to income tax expense recognized from renewable energy credit investments was $6 million and $11 million for the three months ended March 31, 2025 and 2024, respectively. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company has not provided financial or other support to the partnerships that was not contractually required. Although the Company currently estimates that no material losses are probable, its maximum exposure to loss from its investments in such partnerships as of March 31, 2025 was $2.1 billion, including possible recapture of certain tax credits.

The Company serves as investment advisor for certain registered money-market funds. The Company has no explicit arrangement to provide support to those funds, but may waive portions of its allowable management fees as a result of market conditions.

12. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections at March 31, 2025.

Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.

Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.
Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.
Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company's own estimates about the assumptions that market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. A description of the valuation methodologies used for the Company's assets and liabilities that are measured on a recurring basis at estimated fair value is included in note 19 of Notes to Financial Statements in M&T's 2024 Annual Report.

- 33 -

12. Fair value measurements, continued

The following tables present assets and liabilities at March 31, 2025 and December 31, 2024 measured at estimated fair value on a recurring basis:


(Dollars in millions)	Fair Value Measurements		Level 1		Level 2		Level 3 (a)
March 31, 2025
Trading account	$	96	$	96	$	—	$	—
Investment securities available for sale:
U.S. Treasury	8,085		—		8,085		—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,340		—		4,340		—
Residential	8,370		—		8,370		—
Other	4		—		4		—
	20,799		—		20,799		—
Equity securities	280		280		—		—
Real estate loans held for sale	371		—		371		—
Other assets (b)	239		—		236		3
Total assets	$	21,785	$	376	$	21,406	$	3
Other liabilities (b)	$	632	$	—	$	632	$	—
Total liabilities	$	632	$	—	$	632	$	—

December 31, 2024
Trading account	$	101	$	101	$	—	$	—
Investment securities available for sale:
U.S. Treasury	7,931		—		7,931		—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	3,702		—		3,702		—
Residential	7,214		—		7,214		—
Other	2		—		2		—
	18,849		—		18,849		—
Equity securities	235		235		—		—
Real estate loans held for sale	521		—		521		—
Other assets (b)	255		—		251		4
Total assets	$	19,961	$	336	$	19,621	$	4
Other liabilities (b)	$	822	$	—	$	790	$	32
Total liabilities	$	822	$	—	$	790	$	32

__________________________________________________________________________________

*(a)*Significant unobservable inputs used in the fair value measurement of certain commitments to originate real estate loans held for sale included weighted-average commitment expirations of 24% at March 31, 2025 and 6% at December 31, 2024. An increase (decrease) in the estimate of expirations for commitments to originate real estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing.

*(b)*Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), interest rate and foreign exchange contracts not designated as hedging instruments (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 2 and Level 3).

- 34 -

12. Fair value measurements, continued

The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow.

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectable portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2, unless significant adjustments have been made to the valuation that are not readily observable by market participants. Non-real estate collateral supporting commercial and industrial loans generally consists of business assets such as receivables, inventory and equipment. Fair value estimations are typically determined by discounting recorded values of those assets to reflect estimated net realizable value considering specific borrower facts and circumstances and the experience of credit personnel in their dealings with similar borrower collateral liquidations. Such discounts were generally in the range of 10% to 90% with a weighted-average of 37% at March 31, 2025. As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3. Automobile and recreational vehicle collateral is typically valued by reference to independent pricing sources based on recent sales transactions of similar vehicles and the related nonrecurring fair value measurement adjustments have been classified as Level 2. Loans subject to nonrecurring fair value measurement were $524 million at March 31, 2025 ($128 million and $396 million of which were classified as Level 2 and Level 3, respectively), $847 million at December 31, 2024 ($187 million and $660 million of which were classified as Level 2 and Level 3, respectively) and $1.0 billion at March 31, 2024 ($312 million and $707 million of which were classified as Level 2 and Level 3, respectively). Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on March 31, 2025 and 2024 were decreases of $35 million and $175 million for the three-month periods ended March 31, 2025 and 2024, respectively.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans are primarily comprised of commercial and residential real property and are generally measured at the lower of cost or fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2. Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement were not material at each of March 31, 2025 and 2024. Changes in fair value recognized during the three-month periods ended March 31, 2025 and 2024 for foreclosed assets held by the Company were not material.

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12. Fair value measurements, continued

Capitalized servicing rights

Capitalized servicing rights are initially measured at fair value in the Company’s Consolidated Balance Sheet. The Company utilizes the amortization method to subsequently measure its capitalized servicing assets. In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of certain strata exceed their estimated fair value. To estimate the fair value of servicing rights, the Company considers market prices for similar assets, if available, and the present value of expected future cash flows associated with the servicing rights calculated using assumptions that market participants would use in estimating future servicing income and expense. Such assumptions include estimates of the cost of servicing loans, loan default rates, an appropriate discount rate and prepayment speeds. For purposes of evaluating and measuring impairment of capitalized servicing rights, the Company stratifies such assets based on the predominant risk characteristics of the underlying financial instruments that are expected to have the most impact on projected prepayments, cost of servicing and other factors affecting future cash flows associated with the servicing rights. Such factors may include financial asset or loan type, note rate and term. The amount of impairment recognized is the amount by which the carrying value of the capitalized servicing rights for a stratum exceed estimated fair value. Impairment is recognized through a valuation allowance. The determination of fair value of capitalized servicing rights is considered a Level 3 valuation. Capitalized servicing rights related to mortgage loans required no valuation allowance at each of March 31, 2025, December 31, 2024 and March 31, 2024.

Disclosures of fair value of financial instruments

The carrying amounts and estimated fair value for certain financial instruments that are not recorded at fair value in the Consolidated Balance Sheet are presented in the following table:


(Dollars in millions)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
March 31, 2025
Financial assets:
Cash and cash equivalents	$	2,109	$	2,109	$	1,980	$	129	$	—
Interest-bearing deposits at banks	20,656		20,656		—		20,656		—
Investment securities held to maturity	13,352		12,308		—		12,264		44
Loans and leases, net	132,374		131,995		—		6,653		125,342
Financial liabilities:
Time deposits	13,979		13,948		—		13,948		—
Short-term borrowings	1,573		1,573		—		1,573		—
Long-term borrowings	10,496		10,605		—		10,605		—

December 31, 2024
Financial assets:
Cash and cash equivalents	1,909		1,909		1,749		160		—
Interest-bearing deposits at banks	18,873		18,873		—		18,873		—
Investment securities held to maturity	14,195		12,955		—		12,909		46
Loans and leases, net	133,397		131,334		—		6,806		124,528
Financial liabilities:
Time deposits	14,476		14,463		—		14,463		—
Short-term borrowings	1,060		1,060		—		1,060		—
Long-term borrowings	12,605		12,754		—		12,754		—

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12. Fair value measurements, continued

With the exception of marketable securities and mortgage loans originated for sale, the Company’s financial instruments presented in the preceding tables are not readily marketable and market prices do not exist. Generally, the Company has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time.

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.

13. Commitments and contingencies

In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Company's significant commitments. Certain of these commitments are not included in the Company's Consolidated Balance Sheet.


(Dollars in millions)	March 31, 2025		December 31, 2024
Commitments to extend credit:
Commercial and industrial	$	33,065	$	31,521
Commercial real estate loans to be sold	784		479
Other commercial real estate	2,345		2,697
Residential real estate loans to be sold	224		190
Other residential real estate	648		517
Home equity lines of credit	7,933		7,933
Credit cards	6,243		6,087
Other	287		244
Standby letters of credit	2,254		2,260
Commercial letters of credit	53		58
Financial guarantees and indemnification contracts	4,429		4,335
Commitments to sell real estate loans	1,313		1,142

Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. In addition to the amounts presented in the preceding table, the Company had discretionary funding commitments to commercial customers of $12.6 billion and $12.7 billion at March 31, 2025 and December 31, 2024, respectively, that the Company had the unconditional right to cancel prior to funding. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management's assessment of the customer's creditworthiness.

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13. Commitments and contingencies, continued

Financial guarantees and indemnification contracts are predominantly comprised of recourse obligations associated with sold loans and other guarantees and commitments. Included in financial guarantees and indemnification contracts are loan principal amounts sold with recourse in conjunction with the Company's involvement in the Fannie Mae DUS program. The Company's maximum credit risk for recourse associated with loans sold under this program totaled approximately $4.3 billion and $4.2 billion at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, the Company estimated that the recourse obligations described above were not material to the Company's consolidated financial position. There have been no material losses incurred as a result of those credit recourse arrangements.

Since many loan commitments, standby letters of credit, and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows.

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are accounted for as derivatives and along with commitments to originate real estate loans to be held for sale are recorded in the Consolidated Balance Sheet at estimated fair market value.

The Company is contractually obligated to repurchase previously sold residential real estate loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. At March 31, 2025, the Company's estimated obligation to loan purchasers was not material to the Company’s consolidated financial position.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and other matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $25 million at March 31, 2025. Although the Company does not believe that the outcome of pending legal matters will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

At March 31, 2025 and December 31, 2024, the Company's remaining liability related to the FDIC special assessment was $133 million and $157 million, respectively. Such amounts are classified as Accrued interest and other liabilities in the Consolidated Balance Sheet. The FDIC has indicated that the amount of the special assessment may be adjusted in the future as its loss estimates change.

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14. Segment information

Reportable segments have been determined based upon the Company’s organizational structure which is primarily arranged around the delivery of products and services to similar customer types. The Company's internal profitability reporting system produces financial information, inclusive of net interest income and income before taxes, for each segment. Such information is reviewed by the Company's Chief Executive Officer, who has been identified as the chief operating decision maker, in evaluating operating decisions, business performance and the allocation of resources. The Company's reportable segments are Commercial Bank, Retail Bank and Institutional Services and Wealth Management.

The financial information of the Company's segments was compiled utilizing the accounting policies described in note 21 of Notes to Financial Statements in the Company's 2024 Annual Report. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

Information about the Company's segments follows:


	Three Months Ended March 31,
	Commercial Bank				Retail Bank				Institutional Services and Wealth Management				All Other				Total (c)
(Dollars in millions)	2025		2024		2025		2024		2025		2024		2025		2024		2025		2024
Net interest income (a)	$	529	$	548	$	972	$	1,071	$	171	$	186	$	23	$	(125)	$	1,695	$	1,680
Noninterest income	173		151		208		197		209		191		21		41		611		580
Total revenue	702		699		1,180		1,268		380		377		44		(84)		2,306		2,260
Provision for credit losses	36		77		79		68		3		—		12		55		130		200
Salaries and employee benefits	151		146		196		190		106		100		434		397		887		833
Depreciation and amortization	10		9		62		65		2		2		56		54		130		130
Other direct expenses	67		66		99		100		26		28		206		239		398		433
Indirect expense (b)	123		124		279		244		81		75		(483)		(443)		—		—
Income (loss) before taxes	315		277		465		601		162		172		(181)		(386)		761		664
Income tax expense (benefit)	84		76		118		155		41		44		(66)		(142)		177		133
Net income (loss)	$	231	$	201	$	347	$	446	$	121	$	128	$	(115)	$	(244)	$	584	$	531
Average total assets	$	79,362	$	81,083	$	54,381	$	52,232	$	4,102	$	3,636	$	70,476	$	74,527	$	208,321	$	211,478

__________________________________________________________________________________

*(a)*Net interest income is the difference between actual taxable-equivalent interest earned on assets and interest paid on liabilities by a segment and a funding charge (credit) based on the Company's internal funds transfer and pricing methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $12 million for each of the three-month periods ended March 31, 2025 and 2024 and is eliminated in "All Other" total revenues.

*(b)*Indirect expense represents centrally-allocated costs associated with data processing, risk management and other support services provided by the "All Other" category to the Commercial Bank, Retail Bank and Institutional Services and Wealth Management segments.

*(c)*Intersegment revenues and expenses were not material for the three-month periods ended March 31, 2025 and 2024.

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15. Relationship with BLG and Bayview Financial

M&T holds a 20% minority interest in BLG, a privately-held commercial mortgage company. That investment had no remaining carrying value at March 31, 2025 as a result of cumulative losses recognized and cash distributions received in prior years. Cash distributions now received from BLG are recognized as income by M&T and included in Other revenues from operations in the Consolidated Statement of Income. That income totaled $25 million for the three months ended March 31, 2024. No distributions were received from BLG for the three months ended March 31, 2025.

Bayview Financial, a privately-held specialty finance company, is BLG's majority investor. In addition to their common investment in BLG, the Company and Bayview Financial conduct other business activities with each other. The Company has obtained loan servicing rights for mortgage loans from BLG and Bayview Financial having outstanding principal balances of $971 million at March 31, 2025 and $1.0 billion at December 31, 2024. Revenues from those servicing rights were $1 million in each of the three-month periods ended March 31, 2025 and 2024. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $161.0 billion and $111.5 billion at March 31, 2025 and December 31, 2024, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $40 million and $32 million for the three-month periods ended March 31, 2025 and 2024, respectively.

The Company also held $36 million and $37 million of mortgage-backed securities in its held-to-maturity portfolio at March 31, 2025 and December 31, 2024, respectively, that were securitized by Bayview Financial. At March 31, 2025, the Company held $394 million of Bayview Financial's outstanding $2.6 billion syndicated commercial loan facility and also had a commercial loan to an entity affiliated with Bayview Financial with an outstanding balance of $306 million. Bayview Financial also maintained $3.2 billion and $2.2 billion of deposit balances at the Company at March 31, 2025 and December 31, 2024, respectively, inclusive of deposits related to loan servicing relationships.

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