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)	June 30, 2025		December 31, 2024
Assets
Cash and due from banks	$	2,128	$	1,909
Interest-bearing deposits at banks	19,297		18,873

Trading account	93		101
Investment securities:
Available for sale (cost: $21,458 at June 30, 2025; $19,054 at December 31, 2024)	21,540		18,849
Held to maturity (fair value: $12,073 at June 30, 2025; $12,955 at December 31, 2024)	13,024		14,195
Equity and other securities (cost: $1,003 at June 30, 2025; $1,007 at December 31, 2024)	1,004		1,007
Total investment securities	35,568		34,051


Loans (a)	136,116		135,581
Allowance for loan losses	(2,197)		(2,184)
Net loans	133,919		133,397
Premises and equipment	1,646		1,705
Goodwill	8,465		8,465
Core deposit and other intangible assets	84		94
Accrued interest and other assets	10,384		9,510
Total assets	$	211,584	$	208,105
Liabilities
Noninterest-bearing deposits	$	47,485	$	46,020
Savings and interest-checking deposits	102,874		100,599
Time deposits	14,094		14,476
Total deposits	164,453		161,095
Short-term borrowings	2,071		1,060
Long-term borrowings (a)	12,380		12,605
Accrued interest and other liabilities	4,155		4,318
Total liabilities	183,059		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 June 30, 2025 and December 31, 2024	90		90
Common stock issuable, 9,556 shares at June 30, 2025; 11,642 shares at December 31, 2024	1		1
Additional paid-in capital	9,981		9,998
Retained earnings	19,870		19,079
Accumulated other comprehensive income (loss), net	215		(164)
Treasury stock — common, at cost — 22,913,989 shares at June 30, 2025; 13,922,820 shares at December 31, 2024	(4,026)		(2,371)
Total shareholders’ equity	28,525		29,027
Total liabilities and shareholders’ equity	$	211,584	$	208,105

__________________________________________________________________________________

*(a)*Loans of $2.5 billion and $1.5 billion at June 30, 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 issued to third party investors were included in Long-term borrowings and were $2.1 billion at June 30, 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 June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2025		2024		2025		2024
Interest income
Loans	$	2,054	$	2,128	$	4,060	$	4,225
Investment securities	334		260		670		488


Deposits at banks	219		400		437		819
Other	2		1		2		2
Total interest income	2,609		2,789		5,169		5,534
Interest expense
Savings and interest-checking deposits	579		618		1,131		1,233
Time deposits	123		217		247		442
Short-term borrowings	37		69		69		153
Long-term borrowings	157		167		314		308
Total interest expense	896		1,071		1,761		2,136
Net interest income	1,713		1,718		3,408		3,398
Provision for credit losses	125		150		255		350
Net interest income after provision for credit losses	1,588		1,568		3,153		3,048
Other income
Mortgage banking revenues	130		106		248		210
Service charges on deposit accounts	137		127		270		251
Trust income	182		170		359		330
Brokerage services income	31		30		63		59
Trading account and other non-hedging derivative gains	12		7		21		16
Gain (loss) on bank investment securities	—		(8)		—		(6)
Other revenues from operations	191		152		333		304
Total other income	683		584		1,294		1,164
Other expense
Salaries and employee benefits	813		764		1,700		1,597
Equipment and net occupancy	130		125		262		254
Outside data processing and software	138		124		274		244
Professional and other services	86		91		170		176
FDIC assessments	22		37		45		97
Advertising and marketing	25		27		47		47
Amortization of core deposit and other intangible assets	9		13		22		28
Other costs of operations	113		116		231		250
Total other expense	1,336		1,297		2,751		2,693
Income before taxes	935		855		1,696		1,519
Income taxes	219		200		396		333
Net income	$	716	$	655	$	1,300	$	1,186
Net income available to common shareholders
Basic	$	679	$	626	$	1,226	$	1,131
Diluted	679		626		1,226		1,131
Net income per common share
Basic	4.26		3.75		7.58		6.79
Diluted	4.24		3.73		7.55		6.76
Average common shares outstanding
Basic	159,221		166,951		161,701		166,705
Diluted	160,005		167,659		162,511		167,372

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 June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024			2025		2024
Net income	$	716	$	655		$	1,300	$	1,186
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains on investment securities	67		18			214		8
Cash flow hedges adjustments	56		22			164		(95)
Defined benefit plans liability adjustments	(1)		(2)			(3)		(3)
Other	3		—			4		(2)
Total other comprehensive income (loss)	125		38			379		(92)
Total comprehensive income	$	841	$	693		$	1,679	$	1,094

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)


	Six Months Ended June 30,
(Dollars in millions)	2025		2024
Cash flows from operating activities
Net income	$	1,300	$	1,186
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	255		350
Depreciation and amortization of premises and equipment	164		159
Amortization of capitalized servicing rights	68		70
Amortization of core deposit and other intangible assets	22		28
Provision for deferred income taxes	(22)		(14)
Asset write-downs	6		6
Net (gain) loss on sales of assets	(35)		3
Net change in accrued interest receivable, payable	(13)		—
Net change in other accrued income and expense	53		51
Net change in loans originated for sale	(70)		11
Net change in trading account and other non-hedging derivative assets and liabilities	(249)		112
Net cash from operating activities	1,479		1,962
Cash flows from investing activities
Proceeds from sales:
Investment securities available for sale	—		58
Equity and other securities	304		223
Loans	780		531
Proceeds from maturities:
Investment securities available for sale	2,070		3,522
Investment securities held to maturity	1,161		547
Purchases:
Investment securities available for sale	(4,472)		(7,200)

Equity and other securities	(301)		(294)
Loans	(365)		—
Net change in loans	(1,194)		(1,789)
Net change in interest-bearing deposits at banks	(424)		3,277
Capital expenditures, net	(51)		(101)
Net change in loan servicing advances	(712)		153
Other, net	219		(384)
Net cash from investing activities	(2,985)		(1,457)
Cash flows from financing activities
Net change in deposits	3,357		(3,366)
Net change in short-term borrowings	1,011		(552)
Proceeds from long-term borrowings	2,786		3,357
Payments on long-term borrowings	(3,165)		(162)
Proceeds from issuance of Series J preferred stock	—		733
Purchases of treasury stock	(1,725)		—
Dividends paid — common	(438)		(446)
Dividends paid — preferred	(71)		(58)
Other, net	(30)		36
Net cash from financing activities	1,725		(458)
Net change in cash, cash equivalents and restricted cash	219		47
Cash, cash equivalents and restricted cash at beginning of period	1,909		1,731
Cash, cash equivalents and restricted cash at end of period	$	2,128	$	1,778
Supplemental disclosure of cash flow information
Interest received during the period	$	5,239	$	5,547
Interest paid during the period	1,744		2,115
Income taxes paid during the period	150		106
Supplemental schedule of noncash investing and financing activities
Real estate acquired in settlement of loans	11		23
Additions to right-of-use assets under operating leases	57		43

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 June 30, 2025
Balance — April 1, 2025	$	2,394	$	90	$	1	$	9,968	$	19,405	$	90	$	(2,957)	$	28,991
Total comprehensive income	—		—		—		—		716		125		—		841


Preferred stock cash dividends	—		—		—		—		(35)		—		—		(35)
Purchases of treasury stock	—		—		—		—		—		—		(1,080)		(1,080)
Stock-based compensation transactions, net	—		—		—		13		(2)		—		11		22
Common stock cash dividends — $1.35 per share	—		—		—		—		(214)		—		—		(214)
Balance — June 30, 2025	$	2,394	$	90	$	1	$	9,981	$	19,870	$	215	$	(4,026)	$	28,525












Six Months Ended June 30, 2025
Balance — January 1, 2025	$	2,394	$	90	$	1	$	9,998	$	19,079	$	(164)	$	(2,371)	$	29,027
Total comprehensive income	—		—		—		—		1,300		379		—		1,679


Preferred stock cash dividends	—		—		—		—		(71)		—		—		(71)
Purchases of treasury stock	—		—		—		—		—		—		(1,742)		(1,742)
Stock-based compensation transactions, net	—		—		—		(17)		(2)		—		87		68
Common stock cash dividends — $2.70 per share	—		—		—		—		(436)		—		—		(436)
Balance — June 30, 2025	$	2,394	$	90	$	1	$	9,981	$	19,870	$	215	$	(4,026)	$	28,525

Three Months Ended June 30, 2024
Balance — April 1, 2024	$	2,011	$	90	$	1	$	9,976	$	17,812	$	(589)	$	(2,132)	$	27,169
Total comprehensive income	—		—		—		—		655		38		—		693
Issuance of Series J preferred stock	733		—		—		—		—		—		—		733
Preferred stock cash dividends	—		—		—		—		(27)		—		—		(27)

Stock-based compensation transactions, net	—		—		—		—		(1)		—		85		84
Common stock cash dividends — $1.35 per share	—		—		—		—		(228)		—		—		(228)
Balance — June 30, 2024	$	2,744	$	90	$	1	$	9,976	$	18,211	$	(551)	$	(2,047)	$	28,424

Six Months Ended June 30, 2024
Balance — January 1, 2024	$	2,011	$	90	$	1	$	10,020	$	17,524	$	(459)	$	(2,230)	$	26,957
Total comprehensive income	—		—		—		—		1,186		(92)		—		1,094
Issuance of Series J preferred stock	733		—		—		—		—		—		—		733
Preferred stock cash dividends	—		—		—		—		(52)		—		—		(52)

Stock-based compensation transactions, net	—		—		—		(44)		(1)		—		183		138
Common stock cash dividends — $2.65 per share	—		—		—		—		(446)		—		—		(446)
Balance — June 30, 2024	$	2,744	$	90	$	1	$	9,976	$	18,211	$	(551)	$	(2,047)	$	28,424

See accompanying notes to financial statements.

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Notes to Financial Statements (Unaudited)

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 June 30, 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.

2. Divestiture

In May 2025 the Company sold Wilmington Trust SP Services Inc., a subsidiary that specialized in institutional services, to a third party. The transaction resulted in a gain of $10 million that has been included in Other revenues from operations in the Company's Consolidated Statement of Income for the three-month and six-month periods ended June 30, 2025. The revenues and expenses of that subsidiary were not material to the Company's consolidated results of operations for each of the three-month and six-month periods ended June 30, 2025 and 2024.

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3. 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
June 30, 2025
Investment securities available for sale:
U.S. Treasury	$	7,804	$	39	$	6	$	7,837
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,708		63		4		4,767
Residential	8,943		76		86		8,933
Other	3		—		—		3
	21,458		178		96		21,540
Investment securities held to maturity:
U.S. Treasury	443		—		8		435
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,019		—		94		1,925
Residential	8,301		2		760		7,543
Privately issued	34		11		—		45
State and political subdivisions	2,226		—		102		2,124
Other	1		—		—		1
	13,024		13		964		12,073
Total debt securities	$	34,482	$	191	$	1,060	$	33,613
Equity and other securities:
Readily marketable equity — at fair value	$	273	$	3	$	2	$	274
Other — at cost	730		—		—		730
Total equity and other securities	$	1,003	$	3	$	2	$	1,004

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 $190 million and $176 million at June 30, 2025 and December 31, 2024, respectively, which is included in Accrued interest and other assets in the Company's Consolidated Balance Sheet.

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3. Investment securities, continued

Each of gross realized gains and gross realized losses from sales of investment securities for the three-month and six-month periods ended June 30, 2025 and 2024 were not material. Unrealized gains or losses on equity securities are included in Gain (loss) on bank investment securities in the Company's Consolidated Statement of Income. A summary of debt investment securities that as of June 30, 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
June 30, 2025
Investment securities available for sale:
U.S. Treasury	$	523	$	1	$	1,119	$	5
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	624		4		—		—
Residential	693		6		1,457		80
Other	1		—		1		—
	1,841		11		2,577		85
Investment securities held to maturity:
U.S. Treasury	50		—		385		8
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	—		—		1,925		94
Residential	649		4		6,591		756

State and political subdivisions	35		—		2,000		102
	734		4		10,901		960
Total	$	2,575	$	15	$	13,478	$	1,045

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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3. Investment securities, continued

The Company owned 3,427 individual debt securities with aggregate gross unrealized losses of $1.1 billion at June 30, 2025. Based on a review of each of the securities in the investment securities portfolio at June 30, 2025, the Company concluded that it expected to recover the amortized cost basis of its investment. As of June 30, 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 June 30, 2025, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $730 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 June 30, 2025 or December 31, 2024.

At June 30, 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	$	2,895	$	2,900
Due after one year through five years	4,912		4,940
Due after five years through ten years	—		—
Due after ten years	—		—
	7,807		7,840
Mortgage-backed securities	13,651		13,700
	$	21,458	$	21,540
Debt securities held to maturity:
Due in one year or less	$	82	$	82
Due after one year through five years	641		631
Due after five years through ten years	1,399		1,360
Due after ten years	548		487
	2,670		2,560
Mortgage-backed securities	10,354		9,513
	$	13,024	$	12,073

At June 30, 2025 and December 31, 2024, investment securities with carrying values of $5.8 billion (including $82 million related to repurchase transactions) and $6.2 billion (including $71 million related to repurchase transactions), respectively, were pledged to secure outstanding borrowings, lines of credit and governmental deposits.

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4. Loans and allowance for loan losses

A summary of current, past due and nonaccrual loans as of June 30, 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)
June 30, 2025
Commercial and industrial	$	60,632	$	219	$	22	$	787	$	61,660
Real estate:
Commercial (c)	19,447		321		11		376		20,155
Residential builder and developer (d)	150		—		—		1		151
Other commercial construction	4,199		35		4		23		4,261
Residential (e)	22,796		606		450		265		24,117
Consumer:
Home equity lines and loans	4,530		29		—		75		4,634
Recreational finance	13,555		86		—		25		13,666
Automobile	5,199		52		—		9		5,260
Other	2,171		20		9		12		2,212
Total	$	132,679	$	1,368	$	496	$	1,573	$	136,116

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 $301 million and $277 million at June 30, 2025 and December 31, 2024, respectively.

*(b)*Balances exclude accrued interest receivable of $617 million and $628 million at June 30, 2025 and December 31, 2024, respectively, which is included in Accrued interest and other assets in the Company's Consolidated Balance Sheet.

*(c)*Commercial real estate loans held for sale were $361 million at June 30, 2025 and $310 million at December 31, 2024.

*(d)*In June 2025, the Company sold $661 million of residential builder and developer loans and recognized a gain on sale of $15 million, which is included in Other revenues from operations in the Consolidated Statement of Income. Residential builder and developer loans held for sale were $24 million at June 30, 2025.

*(e)*One-to-four family residential mortgage loans held for sale were $222 million at June 30, 2025 and $211 million at December 31, 2024.

The amount of foreclosed property held by the Company, predominantly consisting of residential real estate, was $30 million and $35 million at June 30, 2025 and December 31, 2024, respectively. There were $194 million and $173 million at June 30, 2025 and December 31, 2024, respectively, of loans secured by residential real estate that were in the process of foreclosure. At June 30, 2025, approximately 46% of those residential real estate loans in the process of foreclosure were government guaranteed.

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4. Loans and allowance for loan losses, continued

At June 30, 2025, approximately $20.9 billion of commercial and industrial loans, $13.6 billion of commercial real estate loans, $19.0 billion of one-to-four family residential real estate loans, $2.8 billion of home equity loans and lines of credit and $13.2 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 5 and 12, loans totaling $2.5 billion and $1.5 billion at June 30, 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 June 30, 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 and six-month periods ended June 30, 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	$	4,712	$	7,842	$	5,186	$	5,022	$	2,719	$	5,746	$	26,527	$	100	$	57,854
Criticized accrual	56		239		473		391		170		485		1,169		36		3,019
Criticized nonaccrual	1		26		84		88		38		254		279		17		787
Total commercial and industrial	$	4,769	$	8,107	$	5,743	$	5,501	$	2,927	$	6,485	$	27,975	$	153	$	61,660
Gross charge-offs three months ended June 30, 2025	$	4	$	5	$	11	$	4	$	2	$	4	$	27	$	—	$	57
Gross charge-offs six months ended June 30, 2025	$	4	$	8	$	19	$	13	$	4	$	9	$	50	$	—	$	107
Real estate:
Commercial:
Pass	$	1,382	$	383	$	1,543	$	1,510	$	1,234	$	10,332	$	460	$	—	$	16,844
Criticized accrual	—		37		385		433		221		1,853		6		—		2,935
Criticized nonaccrual	—		—		1		49		20		306		—		—		376
Total commercial real estate	$	1,382	$	420	$	1,929	$	1,992	$	1,475	$	12,491	$	466	$	—	$	20,155
Gross charge-offs three months ended June 30, 2025	$	—	$	—	$	—	$	4	$	—	$	18	$	—	$	—	$	22
Gross charge-offs six months ended June 30, 2025	$	—	$	—	$	—	$	4	$	—	$	40	$	—	$	—	$	44
Residential builder and developer:
Pass	$	26	$	—	$	6	$	26	$	2	$	9	$	68	$	—	$	137
Criticized accrual	—		—		—		13		—		—		—		—		13
Criticized nonaccrual	—		—		—		—		—		1		—		—		1
Total residential builder and developer	$	26	$	—	$	6	$	39	$	2	$	10	$	68	$	—	$	151
Gross charge-offs three months ended June 30, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Gross charge-offs six months ended June 30, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial construction:
Pass	$	43	$	186	$	1,379	$	845	$	149	$	380	$	50	$	—	$	3,032
Criticized accrual	—		3		108		637		144		308		6		—		1,206
Criticized nonaccrual	—		—		—		11		2		10		—		—		23
Total other commercial construction	$	43	$	189	$	1,487	$	1,493	$	295	$	698	$	56	$	—	$	4,261
Gross charge-offs three months ended June 30, 2025	$	—	$	—	$	—	$	3	$	—	$	—	$	—	$	—	$	3
Gross charge-offs six months ended June 30, 2025	$	—	$	—	$	—	$	3	$	—	$	—	$	—	$	—	$	3

- 15 -

4. Loans and allowance for loan 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 June 30, 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 and six-month periods ended June 30, 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	$	1,802	$	1,976	$	1,273	$	4,333	$	3,610	$	9,681	$	121	$	—	$	22,796
30-89 days past due	4		9		13		100		70		410		—		—		606
Accruing loans past due 90 days or more	—		3		10		63		107		267		—		—		450
Nonaccrual	—		4		6		38		17		199		1		—		265
Total residential real estate	$	1,806	$	1,992	$	1,302	$	4,534	$	3,804	$	10,557	$	122	$	—	$	24,117
Gross charge-offs three months ended June 30, 2025	$	—	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1
Gross charge-offs six months ended June 30, 2025	$	—	$	—	$	—	$	1	$	—	$	2	$	—	$	—	$	3

Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	—	$	1	$	84	$	3,155	$	1,290	$	4,530
30-89 days past due	—		—		—		—		—		1		—		28		29
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		2		1		72		75
Total home equity lines and loans	$	—	$	—	$	—	$	—	$	1	$	87	$	3,156	$	1,390	$	4,634
Gross charge-offs three months ended June 30, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	1
Gross charge-offs six months ended June 30, 2025	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2	$	2
Recreational finance:
Current	$	2,459	$	3,462	$	1,953	$	1,855	$	1,494	$	2,332	$	—	$	—	$	13,555
30-89 days past due	2		16		15		15		13		25		—		—		86
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	1		4		5		4		4		7		—		—		25
Total recreational finance	$	2,462	$	3,482	$	1,973	$	1,874	$	1,511	$	2,364	$	—	$	—	$	13,666
Gross charge-offs three months ended June 30, 2025	$	1	$	6	$	6	$	6	$	5	$	9	$	—	$	—	$	33
Gross charge-offs six months ended June 30, 2025	$	1	$	11	$	14	$	13	$	12	$	22	$	—	$	—	$	73
Automobile:
Current	$	1,116	$	2,056	$	709	$	628	$	493	$	197	$	—	$	—	$	5,199
30-89 days past due	3		13		12		11		8		5		—		—		52
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	1		2		2		2		1		1		—		—		9
Total automobile	$	1,120	$	2,071	$	723	$	641	$	502	$	203	$	—	$	—	$	5,260
Gross charge-offs three months ended June 30, 2025	$	—	$	4	$	2	$	3	$	1	$	1	$	—	$	—	$	11
Gross charge-offs six months ended June 30, 2025	$	—	$	7	$	5	$	6	$	3	$	2	$	—	$	—	$	23
Other:
Current	$	204	$	199	$	119	$	75	$	56	$	27	$	1,490	$	1	$	2,171
30-89 days past due	2		2		2		1		—		—		12		1		20
Accruing loans past due 90 days or more	—		—		—		—		—		—		9		—		9
Nonaccrual	2		1		1		—		—		—		8		—		12
Total other	$	208	$	202	$	122	$	76	$	56	$	27	$	1,519	$	2	$	2,212
Gross charge-offs three months ended June 30, 2025	$	6	$	2	$	2	$	1	$	—	$	—	$	17	$	—	$	28
Gross charge-offs six months ended June 30, 2025	$	7	$	8	$	5	$	2	$	1	$	1	$	37	$	—	$	61
Total loans at June 30, 2025	$	11,816	$	16,463	$	13,285	$	16,150	$	10,573	$	32,922	$	33,362	$	1,545	$	136,116
Total gross charge-offs for the three months ended June 30, 2025	$	11	$	17	$	21	$	22	$	8	$	32	$	44	$	1	$	156
Total gross charge-offs for the six months ended June 30, 2025	$	12	$	34	$	43	$	42	$	20	$	76	$	87	$	2	$	316

- 16 -

4. Loans and allowance for loan 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 -

4. Loans and allowance for loan 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 at December 31, 2024	$	19,234	$	15,083	$	17,786	$	11,704	$	8,328	$	28,783	$	33,120	$	1,543	$	135,581

- 18 -

4. Loans and allowance for loan losses, continued

Allowance for loan losses

For purposes of determining the level of the allowance for loan losses, the Company evaluates its portfolio by loan type. Changes in the allowance for loan losses and the reserve for unfunded credit commitments for the three-month and six-month periods ended June 30, 2025 and 2024 were as follows:


	Allowance for Loan Losses
	Commercial and Industrial			Real Estate											Reserve for Unfunded Credit Commitments (a)
(Dollars in millions)			Commercial			Residential			Consumer			Total
Three Months Ended June 30, 2025
Beginning balance	$	762		$	610		$	105		$	723		$	2,200	$	60
Provision for credit losses	69			(43)			5			74			105		20
Net charge-offs:
Charge-offs	(57)			(25)			(1)			(73)			(156)		—
Recoveries	19			2			1			26			48		—
Net charge-offs	(38)			(23)			—			(47)			(108)		—
Ending balance	$	793		$	544		$	110		$	750		$	2,197	$	80

Three Months Ended June 30, 2024
Beginning balance	$	684		$	754		$	118		$	635		$	2,191	$	60
Provision for credit losses	176			(70)			(8)			52			150		—
Net charge-offs:
Charge-offs	(78)			(43)			(2)			(57)			(180)		—
Recoveries	8			17			2			16			43		—
Net charge-offs	(70)			(26)			—			(41)			(137)		—
Ending balance	$	790		$	658		$	110		$	646		$	2,204	$	60


Six Months Ended June 30, 2025
Beginning balance	$	769	$	599	$	108	$	708	$	2,184	$	60
Provision for credit losses	91		(13)		2		155		235		20
Net charge-offs:
Charge-offs	(107)		(47)		(3)		(159)		(316)		—
Recoveries	40		5		3		46		94		—
Net charge-offs	(67)		(42)		—		(113)		(222)		—
Ending balance	$	793	$	544	$	110	$	750	$	2,197	$	80

Six Months Ended June 30, 2024
Beginning balance	$	620	$	764	$	116	$	629	$	2,129	$	60
Provision for credit losses	313		(61)		(6)		104		350		—
Net charge-offs:
Charge-offs	(156)		(68)		(3)		(116)		(343)		—
Recoveries	13		23		3		29		68		—
Net charge-offs	(143)		(45)		—		(87)		(275)		—
Ending balance	$	790	$	658	$	110	$	646	$	2,204	$	60

__________________________________________________________________________________

*(a)*Further information about unfunded credit commitments is included in note 14.

- 19 -

4. Loans and allowance for loan losses, continued

Despite the allocation in the preceding tables, the allowance for loan losses is general in nature and is available to absorb losses from any loan or lease type. In determining the allowance for loan 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 June 30, 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 loan 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 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 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 loan 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 loan 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.

- 20 -

4. Loans and allowance for loan losses, continued

Information with respect to loans 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 and six-month periods ended June 30, 2025 and 2024 follows:


	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost				Interest Income Recognized
(Dollars in millions)	June 30, 2025						March 31, 2025		January 1, 2025		Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Commercial and industrial	$	663	$	124	$	787	$	662	$	696	$	6	$	12
Real estate:
Commercial	289		87		376		394		468		10		17
Residential builder and developer	1		—		1		1		2		—		—
Other commercial construction	23		—		23		28		66		—		—
Residential	115		150		265		284		279		4		7

Consumer:
Home equity lines and loans	34		41		75		78		81		2		4
Recreational finance	15		10		25		26		31		—		—
Automobile	7		2		9		11		12		—		—
Other	5		7		12		56		55		—		—
Total	$	1,152	$	421	$	1,573	$	1,540	$	1,690	$	22	$	40
	June 30, 2024						March 31, 2024		January 1, 2024		Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Commercial and industrial	$	494	$	311	$	805	$	864	$	670	$	7	$	9
Real estate:
Commercial	315		392		707		855		869		20		26
Residential builder and developer	2		—		2		3		3		—		—
Other commercial construction	13		64		77		141		171		3		3
Residential	115		145		260		255		270		3		7

Consumer:
Home equity lines and loans	37		42		79		87		81		1		2
Recreational finance	15		10		25		30		36		—		—
Automobile	7		4		11		13		14		—		—
Other	58		—		58		54		52		—		—
Total	$	1,056	$	968	$	2,024	$	2,302	$	2,166	$	34	$	47

- 21 -

4. Loans and allowance for loan 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 and six-month periods ended June 30, 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 June 30, 2025
Commercial and industrial	$	68	$	16	$	3	$	87	.14	%
Real estate:
Commercial	266		53		—		319		1.58
Residential builder and developer	—		—		—		—		—
Other commercial construction	12		—		—		12		.27
Residential	37		1		6		44		.18

Consumer:
Home equity lines and loans	—		—		—		—		—
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	10		—		—		10		.44
Total	$	393	$	70	$	9	$	472	.35	%

Six Months Ended June 30, 2025
Commercial and industrial	$	130	$	17	$	76	$	223	.36	%
Real estate:
Commercial	399		53		—		452		2.24
Residential builder and developer	—		—		—		—		—
Other commercial construction	214		—		—		214		5.03
Residential	71		4		12		87		.36
Consumer:
Home equity lines and loans	—		—		—		—		—
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	10		—		—		10		.44
Total	$	824	$	74	$	88	$	986	.73	%

__________________________________________________________________________________

*(a)*Predominantly payment deferrals.

*(b)*Predominantly term extensions combined with payment deferrals or interest rate reductions.

*(c)*Includes approximately $36 million and $70 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2025, respectively.

*(d)*Excludes unfunded commitments to extend credit totaling $10 million and $18 million for the three-month and six-month periods ended June 30, 2025, respectively.

- 22 -

4. Loans and allowance for loan losses, continued


	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 June 30, 2024
Commercial and industrial	$	51	$	13	$	—	$	64	.11	%
Real estate:
Commercial	168		—		—		168		.74
Residential builder and developer	26		—		—		26		2.49
Other commercial construction	125		—		—		125		2.18
Residential	53		4		1		58		.25

Consumer:
Home equity lines and loans	—		—		—		—		—
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	423	$	17	$	1	$	441	.33	%

Six Months Ended June 30, 2024
Commercial and industrial	$	152	$	57	$	—	$	209	.35	%
Real estate:
Commercial	373		—		4		377		1.66
Residential builder and developer	27		—		—		27		2.62
Other commercial construction	197		—		—		197		3.44
Residential	95		8		2		105		.46
Consumer:
Home equity lines and loans	—		—		1		1		.03
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	844	$	65	$	7	$	916	.68	%

__________________________________________________________________________________

*(a)*Predominantly payment deferrals or interest rate reductions.

*(b)*Predominantly term extensions combined with interest rate reductions.

*(c)*Includes approximately $47 million and $88 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2024, respectively.

*(d)*Excludes unfunded commitments to extend credit totaling $1 million and $27 million for the three-month and six-month periods ended June 30, 2024, respectively.

The financial effects of the modifications for the three-month and six-month periods ended June 30, 2025 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.6 years and 0.8 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 9.2 years and 9.7 years, respectively.

The financial effects of the modifications for the three-month and six-month periods ended June 30, 2024 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.7 years and 0.8 years, respectively, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 0.6 years and 0.8 years, respectively, and for residential real estate loans, of 8.9 years and 10.2 years, respectively.

- 23 -

4. Loans and allowance for loan losses, continued

Modified loans to borrowers experiencing financial difficulty are subject to the allowance for loan 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 June 30, 2025 and 2024, of loans that were modified during the twelve-month periods ended June 30, 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 June 30, 2025
Commercial and industrial	$	281	$	7	$	63	$	351
Real estate:
Commercial	598		54		1		653
Residential builder and developer	—		—		—		—
Other commercial construction	279		—		5		284
Residential (c)	77		48		41		166

Consumer:
Home equity lines and loans	1		—		—		1
Recreational finance	1		—		—		1
Automobile	—		—		—		—
Other	10		—		—		10
Total	$	1,247	$	109	$	110	$	1,466




Twelve Months Ended June 30, 2024
Commercial and industrial	$	294	$	15	$	3	$	312
Real estate:
Commercial	545		42		14		601
Residential builder and developer	28		—		—		28
Other commercial construction	344		2		—		346
Residential (c)	110		54		29		193

Consumer:
Home equity lines and loans	2		—		—		2
Recreational finance	—		—		—		—
Automobile	—		—		—		—
Other	—		—		—		—
Total	$	1,323	$	113	$	46	$	1,482

__________________________________________________________________________________

(a) At the respective period end.

(b) Loan modifications predominantly comprised of term extensions or term extensions combined with payment deferrals.

(c) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $40 million and $45 million and as past due 90 days or more of $35 million and $27 million at June 30, 2025 and 2024, respectively.

- 24 -

5. Borrowings

The following table summarizes the Company's short-term and long-term borrowings at June 30, 2025 and December 31, 2024.


(Dollars in millions)	June 30, 2025		December 31, 2024
Short-term borrowings
Repurchase agreements	$	71	$	60
Advances from FHLB	2,000		1,000
Total short-term borrowings	$	2,071	$	1,060

Long-term borrowings
Senior notes — M&T	$	5,594	$	4,710
Senior notes — M&T Bank	3,744		3,745
Advances from FHLB	4		2,004
Subordinated notes — M&T Bank	485		474
Junior subordinated debentures — M&T (a)	402		433
Asset-backed notes (a)	2,141		1,229
Other	10		10
Total long-term borrowings	$	12,380	$	12,605

__________________________________________________________________________________

(a) Further information about Junior Subordinated Debentures and asset-backed note financing transactions is provided in note 12.

In June 2025, M&T issued $750 million of senior notes that mature in July 2031 and pay a 5.179% fixed rate semi-annually until July 2030 after which SOFR plus 1.40% will be paid quarterly until maturity. Also in June 2025, M&T Bank issued $750 million of senior notes that mature in July 2028 and pay a 4.762% fixed rate semi-annually until July 2027 after which SOFR plus 0.95% will be paid quarterly until maturity. In July 2025, M&T issued $750 million of subordinated notes that mature in July 2035 and pay a 5.40% fixed rate semi-annually until July 2030 after which, unless redeemed by M&T at that time, the fixed rate will reset to the U.S. Treasury rate for a five year maturity plus 1.43% until maturity.

M&T Bank had secured borrowing facilities available with the FHLB of New York and the FRB of New York totaling approximately $18.1 billion and $24.7 billion, respectively, at June 30, 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.

- 25 -

6. 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 June 30, 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 June 30,				Six Months Ended June 30,
Series	June 30, 2025	December 31, 2024							June 30, 2025		December 31, 2024		2025		2024		2025		2024
Series E (a)	—	—	$	1,000	—	—	—	%	$	—	$	—	$	—	$	22.95	$	—	$	39.075
Series F (b)	50,000	50,000	10,000		10/28/2016	11/1/2026	5.125		500		500		128.125		128.125		256.25		256.25
Series G (c)	40,000	40,000	10,000		7/30/2019	8/1/2024	7.304		400		400		182.60		125.00		365.20		250.00
Series H (d)	10,000,000	10,000,000	25		4/1/2022	4/1/2027	5.625		261		261		0.3516		0.3516		0.7031		0.7031
Series I (e)	50,000	50,000	10,000		8/17/2021	9/1/2026	3.500		500		500		87.50		87.50		175.00		175.00
Series J (f)	75,000	75,000	10,000		5/13/2024	6/15/2029	7.500		733		733		187.50		—		375.00		—
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%.

- 26 -

7. 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 June 30, 2025 and December 31, 2024, the Company had $71 million and $72 million, respectively, of amounts receivable related to recognized revenue from the sources in the accompanying tables. Such amounts are included in Accrued interest and other assets in the Company's 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 June 30, 2025 and December 31, 2024, the Company had deferred revenue of $52 million and $57 million, respectively, related to the sources in the accompanying tables included in Accrued interest and other liabilities in the Company's Consolidated Balance Sheet. The following tables summarize sources of the Company’s noninterest income during the three-month and six-month periods ended June 30, 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 June 30, 2025
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	43	$	94	$	—	$	137
Trust income	1		—		181		182
Brokerage services income	2		—		29		31
Other revenues from operations:
Merchant discount and credit card interchange fees	19		27		—		46
Other	11		8		2		21
	$	76	$	129	$	212	$	417

Three Months Ended June 30, 2024
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	40	$	87	$	—	$	127
Trust income	1		—		169		170
Brokerage services income	1		—		29		30
Other revenues from operations:
Merchant discount and credit card interchange fees	19		24		—		43
Other	7		8		3		18
	$	68	$	119	$	201	$	388

- 27 -

7. Revenue from contracts with customers, continued


(Dollars in millions)	Commercial Bank		Retail Bank		Institutional Services and Wealth Management		Total
Six Months Ended June 30, 2025
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	88	$	182	$	—	$	270
Trust income	2		—		357		359
Brokerage services income	3		—		60		63
Other revenues from operations:
Merchant discount and credit card interchange fees	35		48		—		83
Other	20		15		4		39
	$	148	$	245	$	421	$	814

Six Months Ended June 30, 2024
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	80	$	171	$	—	$	251
Trust income	2		—		328		330
Brokerage services income	3		—		56		59
Other revenues from operations:
Merchant discount and credit card interchange fees	36		44		—		80
Other	15		15		5		35
	$	136	$	230	$	389	$	755

8. 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 June 30,
(Dollars in millions)	2025		2024		2025		2024
Service cost	$	2	$	3	$	1	$	1
Interest cost on projected benefit obligation	27		29		—		—
Expected return on plan assets	(47)		(50)		—		—
Amortization of prior service credit	—		—		(1)		(1)
Amortization of net actuarial gain	—		(1)		(1)		—
Net periodic benefit	$	(18)	$	(19)	$	(1)	$	—


	Pension Benefits				Other Postretirement Benefits
	Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Service cost	$	4	$	5	$	1	$	1
Interest cost on projected benefit obligation	54		58		1		1
Expected return on plan assets	(93)		(101)		—		—
Amortization of prior service credit	—		—		(1)		(1)
Amortization of net actuarial gain	(1)		(1)		(2)		(1)
Net periodic benefit	$	(36)	$	(39)	$	(1)	$	—

Service cost is included in Salaries and employee benefits and the other components of net periodic benefit cost are included in Other costs of operations in the Company's Consolidated Statement of Income. Expenses incurred in connection with the Company's defined contribution pension and retirement savings plans totaled $40 million at each of the three months ended June 30, 2025 and 2024, and $90 million and $85 million for the six months ended June 30, 2025 and 2024, respectively.

- 28 -

9. Earnings per common share

The computations of basic earnings per common share follow:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2025		2024		2025		2024
Income available to common shareholders:
Net income	$	716	$	655	$	1,300	$	1,186
Less: Preferred stock dividends	(35)		(27)		(71)		(52)
Net income available to common equity	681		628		1,229		1,134
Less: Income attributable to unvested stock-based compensation awards	(2)		(2)		(3)		(3)
Net income available to common shareholders	$	679	$	626	$	1,226	$	1,131
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	159,559		167,282		162,025		167,010
Less: Unvested stock-based compensation awards	(338)		(331)		(324)		(305)
Weighted-average shares outstanding	159,221		166,951		161,701		166,705

Basic earnings per common share	$	4.26	$	3.75	$	7.58	$	6.79

The computations of diluted earnings per common share follow:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2025		2024		2025		2024
Net income available to common equity	$	681	$	628	$	1,229	$	1,134
Less: Income attributable to unvested stock-based compensation awards	(2)		(2)		(3)		(3)
Net income available to common shareholders	$	679	$	626	$	1,226	$	1,131
Adjusted weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	159,559		167,282		162,025		167,010
Less: Unvested stock-based compensation awards	(338)		(331)		(324)		(305)
Plus: Incremental shares from assumed conversion of stock-based compensation awards	784		708		810		667
Adjusted weighted-average shares outstanding	160,005		167,659		162,511		167,372

Diluted earnings per common share	$	4.24	$	3.73	$	7.55	$	6.76

Stock-based compensation awards to purchase common stock of M&T representing common shares of 174,988 and 160,306 during the three-month and six-month periods ended June 30, 2025, respectively, and common shares of 1,213,284 and 1,270,737 during the three-month and six-month periods ended June 30, 2024, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

- 29 -

10. 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	287		—		—		—		287			(73)		214
Unrealized gains on cash flow hedges	—		134		—		—		134			(34)		100
Other	—		—		—		5		5			(1)		4

Total other comprehensive income (loss) before reclassifications	287		134		—		5		426			(108)		318
Amounts reclassified from accumulated other comprehensive income (loss) that (increase) decrease net income:

Net yield adjustment from cash flow hedges currently in effect	—		86		—		—		86		(a)	(22)		64
Amortization of prior service credit	—		—		(1)		—		(1)		(b)	—		(1)
Amortization of actuarial gains	—		—		(3)		—		(3)		(b)	1		(2)

Total other comprehensive income (loss)	287		220		(4)		5		508			(129)		379
Balance — June 30, 2025	$	82	$	85	$	127	$	(5)	$	289		$	(74)	$	215


Balance — January 1, 2024	$	(251)	$	(203)	$	(155)	$	(7)	$	(616)		$	157	$	(459)
Other comprehensive income (loss) before reclassifications:
Unrealized holding losses, net	(1)		—		—		—		(1)			—		(1)
Unrealized losses on cash flow hedges	—		(313)		—		—		(313)			78		(235)
Other	—		—		—		(2)		(2)			—		(2)

Total other comprehensive income (loss) before reclassifications	(1)		(313)		—		(2)		(316)			78		(238)
Amounts reclassified from accumulated other comprehensive income (loss) that (increase) decrease net income:


Net losses realized in net income	13		—		—		—		13			(4)		9
Net yield adjustment from cash flow hedges currently in effect	—		186		—		—		186		(a)	(46)		140
Amortization of prior service credit	—		—		(1)		—		(1)		(b)	—		(1)
Amortization of actuarial gains	—		—		(2)		—		(2)		(b)	—		(2)
Total other comprehensive income (loss)	12		(127)		(3)		(2)		(120)			28		(92)
Balance — June 30, 2024	$	(239)	$	(330)	$	(158)	$	(9)	$	(736)		$	185	$	(551)

__________________________________________________________________________________

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

*(b)*Included in Other costs of operations in the Company's 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	214		164		(3)		4		379
Balance — June 30, 2025	$	61	$	63	$	95	$	(4)	$	215

- 30 -

11. 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 June 30, 2025.

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by the 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
June 30, 2025
Fair value hedges:
Fixed rate long-term borrowings (b) (d)	$	6,100	5.3	3.56	%	4.46	%	$	13

Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (e)	26,650		1.6	3.59		4.32		11
Total	$	32,750	2.3					$	24
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 and commercial and industrial 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 $20 million and $153 million at June 30, 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 $74 million and of losses of $136 million at June 30, 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 $2.8 billion of forward-starting interest rate swap agreements that become effective in 2025 and 2026.

*(e)*Includes notional amount and terms of $11.5 billion of forward-starting interest rate swap agreements that become effective in 2025, 2026 and 2027.

*(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 in each of the three and six months ended June 30, 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 $42.7 billion and $40.5 billion at June 30, 2025 and December 31, 2024, respectively. The notional amounts of foreign currency and other option and futures contracts not designated as hedging instruments aggregated $1.7 billion and $1.6 billion at June 30, 2025 and December 31, 2024, respectively.

- 31 -

11. 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)	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements	$	24	$	2	$	—	$	3
Commitments to sell real estate loans	3		4		4		—
	27		6		4		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	27		39		7		—
	44		43		32		32
Other:
Interest rate contracts (b)	168		185		493		769
Foreign exchange and other option and futures contracts	26		21		25		18
	194		206		518		787
Total derivatives	$	265	$	255	$	554	$	822

__________________________________________________________________________________

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

*(b)*The impact of variation margin payments at June 30, 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 $440 million and $686 million, respectively, and in a liability position of $32 million and $15 million, respectively.


	Amount of Gain (Loss) Recognized
	Three Months Ended June 30,
	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)	$	54	$	(55)	$	(18)	$	18


Derivatives not designated as hedging instruments
Interest rate contracts (b)	$	7			$	3
Foreign exchange and other option and futures contracts (b)	2				4
Total	$	9			$	7


	Amount of Gain (Loss) Recognized
	Six Months Ended June 30,
	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)	$	147	$	(147)	$	(78)	$	78


Derivatives not designated as hedging instruments
Interest rate contracts (b)	$	12			$	6
Foreign exchange and other option and futures contracts (b)	6				8
Total	$	18			$	14

__________________________________________________________________________________

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

*(b)*Included in Trading account and other non-hedging derivative gains in the Company's Consolidated Statement of Income.

- 32 -

11. Derivative financial instruments, continued


	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)	June 30, 2025		December 31, 2024		June 30, 2025		December 31, 2024
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges
Long-term borrowings	$	6,079	$	5,184	$	(8)	$	(155)
Investment securities available for sale			381				—

The net effect of interest rate swap agreements was to decrease net interest income by $44 million and $106 million during the three-month and six-month periods ended June 30, 2025, respectively, and to decrease net interest income by $113 million and $213 million during the three-month and six-month periods ended June 30, 2024, respectively. The amount of interest income recognized in the Company's Consolidated Statement of Income associated with derivatives designated as cash flow hedges was a decrease of $33 million and $99 million for the three months ended June 30, 2025 and 2024, respectively, and a decrease of $86 million and $186 million for the six-month periods ended June 30, 2025 and 2024, respectively. As of June 30, 2025, the unrealized gain recognized in other comprehensive income related to cash flow hedges was $85 million, of which losses of $1 million and $5 million and gains of $60 million and $31 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 $247 million and $257 million at June 30, 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 June 30, 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 June 30, 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 $72 million and $157 million at June 30, 2025 and December 31, 2024, respectively. Counterparties posted collateral relating to those positions of $76 million and $157 million at June 30, 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.

- 33 -

12. Variable interest entities and asset securitizations

The Company’s securitization activities include securitizing loans originated for sale into government-issued or guaranteed mortgage-backed securities. Additionally, M&T Bank and its subsidiaries have issued asset-backed notes secured by either equipment finance loans and leases or by automobile loans. Those loans and leases were sold into special 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. Assets held in each special purpose trust may only be used to settle the respective obligations of the asset-backed notes issued by that trust and the holders of the asset-backed notes have no recourse to the Company. The outstanding balances of those asset-backed notes issued to third party investors are included in Long-term borrowings in the Company's Consolidated Balance Sheet. Information about the asset-backed notes issued to investors and the respective special purpose trust at June 30, 2025 and December 31, 2024 are included in the following table.


(Dollars in millions)		June 30, 2025							December 31, 2024
Issue Date	Collateral Type	Remaining Loan Collateral Balance		Asset-Backed Notes to Investors		Weighted-Average Life	Weighted-Average Rate		Remaining Loan Collateral Balance		Asset-Backed Notes to Investors
August 2023	Equipment finance loans and leases	$	324	$	214	0.8	5.74	%	$	416	$	297
March 2024	Automobile loans	314		302		1.3	5.28		383		371
August 2024	Equipment finance loans and leases	588		478		1.3	4.88		691		561
February 2025	Automobile loans	641		627		1.7	4.76		—		—
May 2025	Equipment finance loans and leases	636		520		2.0	4.74		—		—
				$	2,141						$	1,229

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 June 30, 2025 and December 31, 2024, the Company included the Junior Subordinated Debentures as Long-term borrowings in the Company's Consolidated Balance Sheet and included $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 $10.7 billion and $10.5 billion at June 30, 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 Company's 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

- 34 -

12. Variable interest entities and asset securitizations, continued

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)	June 30, 2025		December 31, 2024
Affordable housing projects:
Carrying amount (a)	$	1,527	$	1,384
Amount of future funding commitments included in carrying amount (b)	596		467
Contingent commitments	83		69
Renewable energy:
Carrying amount (a)	104		135
Amount of future funding commitments included in carrying amount (b)	101		46
Other:
Carrying amount (a)	35		37
Amount of future funding commitments included in carrying amount	—		—

__________________________________________________________________________________

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

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

The reduction to income tax expense recognized from the Company's investments in partnerships accounted for using the proportional amortization method was $10 million (net of $45 million of investment amortization) and $8 million (net of $45 million of investment amortization) for the three months ended June 30, 2025 and 2024, respectively, and $20 million (net of $89 million of investment amortization) and $15 million (net of $88 million of investment amortization) for the six months ended June 30, 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 Company's Consolidated Statement of Cash Flows. While the Company has elected to apply the proportional amortization method for renewable energy credit investments, at June 30, 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 $12 million for the three-month and six-month periods ended June 30, 2025, respectively, and $9 million and $20 million for the three-month and six-month periods ended June 30, 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 June 30, 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.

- 35 -

13. 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 June 30, 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 at estimated fair value on a recurring basis and on a nonrecurring basis is included in note 19 of Notes to Financial Statements in M&T's 2024 Annual Report.

- 36 -

13. Fair value measurements, continued

The following tables present assets and liabilities at June 30, 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)
June 30, 2025
Trading account	$	93	$	93	$	—	$	—
Investment securities available for sale:
U.S. Treasury	7,837		—		7,837		—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,767		—		4,767		—
Residential	8,933		—		8,933		—
Other	3		—		3		—
	21,540		—		21,540		—
Equity securities	274		274		—		—
Real estate loans held for sale	583		—		583		—
Other assets (b)	265		—		260		5
Total assets	$	22,755	$	367	$	22,383	$	5
Other liabilities (b)	$	554	$	—	$	554	$	—
Total liabilities	$	554	$	—	$	554	$	—

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 30% at June 30, 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).

- 37 -

13. 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 subject to nonrecurring fair value measurement were $644 million at June 30, 2025 ($166 million and $478 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 June 30, 2024 ($248 million and $783 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 June 30, 2025 were decreases of $115 million and $157 million for the three-month and six-month periods ended June 30, 2025, respectively. Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on June 30, 2024 were decreases of $93 million and $221 million for the three-month and six-month periods ended June 30, 2024, respectively.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement were not material at each of June 30, 2025, December 31, 2024 and June 30, 2024. Changes in fair value recognized during the three-month and six-month periods ended June 30, 2025 and 2024 for foreclosed assets held by the Company were not material.

Capitalized servicing rights

Capitalized servicing rights related to mortgage loans required no valuation allowance at each of June 30, 2025, December 31, 2024 and June 30, 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 Company's Consolidated Balance Sheet are presented in the following table:


(Dollars in millions)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
June 30, 2025
Financial assets:
Cash and cash equivalents	$	2,128	$	2,128	$	1,985	$	143	$	—
Interest-bearing deposits at banks	19,297		19,297		—		19,297		—
Investment securities held to maturity	13,024		12,073		—		12,028		45
Loans, net	133,919		133,683		—		6,811		126,872
Financial liabilities:
Time deposits	14,094		14,055		—		14,055		—
Short-term borrowings	2,071		2,071		—		2,071		—
Long-term borrowings	12,380		12,552		—		12,552		—

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, 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		—

- 38 -

13. 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.

14. Commitments and contingencies

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


(Dollars in millions)	June 30, 2025		December 31, 2024
Commitments to extend credit:
Commercial and industrial	$	34,303	$	31,521
Commercial real estate loans to be sold	659		479
Other commercial real estate	2,004		2,697
Residential real estate loans to be sold	248		190
Other residential real estate	423		517
Home equity lines of credit	7,927		7,933
Credit cards	6,357		6,087
Other	278		244
Standby letters of credit	2,305		2,260
Commercial letters of credit	40		58
Financial guarantees and indemnification contracts	4,503		4,335
Commitments to sell real estate loans	1,424		1,142

Commitments to extend credit are agreements to lend to customers and generally have 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 June 30, 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.

- 39 -

14. 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 June 30, 2025 and December 31, 2024, respectively.

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. As disclosed in note 4, the Company maintains a reserve for unfunded credit commitments, which is included in Accrued interest and other liabilities in its Consolidated Balance Sheet, for estimated credit losses related to such contracts.

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 Company's 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 June 30, 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 June 30, 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 June 30, 2025 and December 31, 2024, the Company's remaining liability related to the FDIC special assessment was $108 million and $157 million, respectively. Such amounts are classified as Accrued interest and other liabilities in the Company's 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.

- 40 -

15. 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 reportable segments follows:


	Three Months Ended June 30,
	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)	$	531	$	553	$	988	$	1,090	$	166	$	194	$	28	$	(119)	$	1,713	$	1,718
Noninterest income	205		164		234		204		225		207		19		9		683		584
Total revenue	736		717		1,222		1,294		391		401		47		(110)		2,396		2,302
Provision for credit losses	60		77		71		60		2		3		(8)		10		125		150
Salaries and employee benefits	150		154		201		191		107		103		355		316		813		764
Depreciation and amortization	11		10		60		63		2		3		51		51		124		127
Other direct expenses	73		68		95		93		26		23		205		222		399		406
Indirect expense (b)	129		127		292		252		82		74		(503)		(453)		—		—
Income (loss) before taxes	313		281		503		635		172		195		(53)		(256)		935		855
Income tax expense (benefit)	82		76		128		163		44		51		(35)		(90)		219		200
Net income (loss)	$	231	$	205	$	375	$	472	$	128	$	144	$	(18)	$	(166)	$	716	$	655
Average total assets	$	78,497	$	81,198	$	55,995	$	52,950	$	4,272	$	3,668	$	71,497	$	74,165	$	210,261	$	211,981

- 41 -

15. Segment information, continued


	Six Months Ended June 30,
	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)	$	1,060	$	1,101	$	1,960	$	2,161	$	337	$	380	$	51	$	(244)	$	3,408	$	3,398
Noninterest income	378		315		442		401		434		398		40		50		1,294		1,164
Total revenue	1,438		1,416		2,402		2,562		771		778		91		(194)		4,702		4,562
Provision for credit losses	96		154		150		128		5		3		4		65		255		350
Salaries and employee benefits	301		300		397		381		213		203		789		713		1,700		1,597
Depreciation and amortization	21		19		122		128		4		5		107		105		254		257
Other direct expenses	140		134		194		193		52		51		411		461		797		839
Indirect expense (b)	252		251		571		496		163		149		(986)		(896)		—		—
Income (loss) before taxes	628		558		968		1,236		334		367		(234)		(642)		1,696		1,519
Income tax expense (benefit)	166		152		246		318		85		95		(101)		(232)		396		333
Net income (loss)	$	462	$	406	$	722	$	918	$	249	$	272	$	(133)	$	(410)	$	1,300	$	1,186
Average total assets	$	78,927	$	81,140	$	55,193	$	52,591	$	4,187	$	3,652	$	70,989	$	74,346	$	209,296	$	211,729

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*(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 $9 million and $13 million for the three-month periods ended June 30, 2025 and 2024, respectively, and $21 million and $25 million for the six-month periods ended June 30, 2025 and 2024, respectively, 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 and six-month periods ended June 30, 2025 and 2024.

16. 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 June 30, 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 Company's Consolidated Statement of Income. That income totaled $25 million for the six-month period ended June 30, 2024. No distributions were received from BLG for the three-month and six-month periods ended June 30, 2025 or the three-month period ended June 30, 2024.

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 $939 million at June 30, 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 June 30, 2025 and 2024, and $2 million and $3 million in the six-month periods ended June 30, 2025 and 2024, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $157.6 billion and $111.5 billion at June 30, 2025 and December 31, 2024, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $55 million and $31 million for the three-month periods ended June 30, 2025 and 2024, respectively, and $95 million and $63 million for the six-month periods ended June 30, 2025 and 2024, respectively.

The Company also held $34 million and $37 million of mortgage-backed securities in its held-to-maturity portfolio at June 30, 2025 and December 31, 2024, respectively, that were securitized by Bayview Financial. The Company had various lending commitments to Bayview Financial totaling $1.0 billion at June 30, 2025, with $666 million and $404 million of outstanding balances at June 30, 2025 and December 31, 2024, respectively. Bayview Financial also maintained $3.5 billion and $2.2 billion of deposit balances at the Company at June 30, 2025 and December 31, 2024, respectively, inclusive of deposits related to loan servicing relationships.

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