Item 1. Financial Statements (Unaudited).

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Item 1. Financial Statements (Unaudited).

M&T Bank Corporation and Subsidiaries

Consolidated Balance Sheet (Unaudited)


(Dollars in millions, except per share)	March 31, 2026		December 31, 2025
Assets
Cash and due from banks	$	1,903	$	1,701
Interest-bearing deposits at banks	14,445		17,068

Trading account	92		97
Investment securities:
Available for sale (cost: $25,219 at March 31, 2026; $22,994 at December 31, 2025)	25,228		23,202
Held to maturity (fair value: $11,355 at March 31, 2026; $11,715 at December 31, 2025)	12,119		12,430
Equity and other securities (cost: $1,273 at March 31, 2026; $1,016 at December 31, 2025)	1,274		1,017
Total investment securities	38,621		36,649


Loans (a)	139,914		138,702
Allowance for loan losses	(2,136)		(2,116)
Net loans	137,778		136,586
Premises and equipment	1,716		1,629
Goodwill	8,465		8,465
Core deposit and other intangible assets	55		64
Accrued interest and other assets	11,661		11,251
Total assets	$	214,736	$	213,510
Liabilities
Noninterest-bearing deposits	$	45,892	$	46,509
Savings and interest-checking deposits	104,767		107,173
Time deposits	13,082		13,227
Total deposits	163,741		166,909
Short-term borrowings	7,851		2,149
Long-term borrowings (a)	11,175		10,911
Accrued interest and other liabilities	3,997		4,364
Total liabilities	186,764		184,333
Shareholders' equity
Preferred stock	2,434		2,834
Common stock, $0.50 par, 250,000,000 shares authorized, 179,436,779 shares issued at March 31, 2026 and December 31, 2025	90		90

Additional paid-in capital	9,961		10,011
Retained earnings	21,476		20,882
Accumulated other comprehensive income (loss), net	66		277
Treasury stock — common, at cost — 32,523,605 shares at March 31, 2026; 27,604,513 shares at December 31, 2025	(6,055)		(4,917)
Total shareholders’ equity	27,972		29,177
Total liabilities and shareholders’ equity	$	214,736	$	213,510

__________________________________________________________________________________

*(a)*Loans of $2.4 billion and $2.1 billion at March 31, 2026 and December 31, 2025, 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 $2.0 billion at March 31, 2026 and $1.7 billion at December 31, 2025.

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Income (Unaudited)


	Three Months Ended March 31,
(Dollars in millions, except per share, shares in thousands)	2026		2025
Interest income
Loans	$	1,994	$	2,006
Investment securities	393		336


Deposits at banks	149		218

Total interest income	2,536		2,560
Interest expense
Savings and interest-checking deposits	483		552
Time deposits	97		124
Short-term borrowings	54		32
Long-term borrowings	150		157
Total interest expense	784		865
Net interest income	1,752		1,695
Provision for credit losses	140		130
Net interest income after provision for credit losses	1,612		1,565
Other income
Mortgage banking revenues	127		118
Service charges on deposit accounts	139		133
Trust income	183		177
Brokerage services income	35		32
Trading account and other non-hedging derivative gains	14		9
Gain (loss) on bank investment securities	4		—
Other revenues from operations	187		142
Total other income	689		611
Other expense
Salaries and employee benefits	914		887
Equipment and net occupancy	133		132
Outside data processing and software	144		136
Professional and other services	93		84
FDIC assessments	23		23
Advertising and marketing	21		22
Amortization of core deposit and other intangible assets	9		13
Other costs of operations	101		118
Total other expense	1,438		1,415
Income before taxes	863		761
Income taxes	199		177
Net income	$	664	$	584
Net income available to common shareholders
Basic	$	620	$	547
Diluted	620		547
Net income per common share
Basic	4.16		3.33
Diluted	4.13		3.32
Average common shares outstanding
Basic	149,225		164,209
Diluted	150,109		165,047

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income (Unaudited)


	Three Months Ended March 31,
(Dollars in millions)	2026		2025
Net income	$	664	$	584
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	(149)		147
Cash flow hedges adjustments	(60)		108
Defined benefit plans liability adjustments	(1)		(2)
Other	(1)		1
Total other comprehensive income (loss)	(211)		254
Total comprehensive income	$	453	$	838

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)


	Three Months Ended March 31,
(Dollars in millions)	2026		2025
Cash flows from operating activities
Net income	$	664	$	584
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	140		130
Depreciation and amortization of premises and equipment	79		83
Amortization of capitalized servicing rights	9		34
Amortization of core deposit and other intangible assets	9		13
Provision for deferred income taxes	14		(6)
Asset write-downs	3		3
Net gain on sales of assets	(9)		(5)
Net change in accrued interest receivable, payable	(62)		(63)
Net change in other accrued income and expense	(97)		(140)
Net change in loans originated for sale	220		159
Net change in trading account and other non-hedging derivative assets and liabilities	42		(157)
Net cash from operating activities	1,012		635
Cash flows from investing activities
Proceeds from sales:
Investment securities available for sale	2,492		—
Equity and other securities	322		159
Loans	6		93
Proceeds from maturities:
Investment securities available for sale	1,211		820
Investment securities held to maturity	315		848
Purchases:
Investment securities available for sale	(5,924)		(2,571)


Equity and other securities	(579)		(138)
Loans	—		(68)
Net change in loans	(1,611)		678

Capital expenditures, net	(96)		(25)
Net change in loan servicing advances	(280)		(279)
Other, net	(180)		134
Net cash from investing activities	(4,324)		(349)
Cash flows from financing activities
Net change in deposits	(3,168)		4,314
Net change in short-term borrowings	5,702		513
Proceeds from long-term borrowings	508		743
Payments on long-term borrowings	(212)		(2,950)

Redemption of Series G preferred stock	(400)		—
Purchases of treasury stock	(1,238)		(656)
Dividends paid — common	(227)		(225)
Dividends paid — preferred	(48)		(41)
Other, net	(26)		(1)
Net cash from financing activities	891		1,697
Net change in cash, cash equivalents and restricted cash	(2,421)		1,983
Cash, cash equivalents and restricted cash at beginning of period (a)	18,769		20,782
Cash, cash equivalents and restricted cash at end of period (a)	$	16,348	$	22,765
Supplemental disclosure of cash flow information
Interest received during the period	$	2,608	$	2,605
Interest paid during the period	862		933
Income taxes paid during the period	34		70
Supplemental schedule of noncash investing and financing activities
Real estate and other foreclosed assets acquired in settlement of loans	5		5
Additions to right-of-use assets under operating leases	70		14

__________________________________________________________________________________

*(a)*Effective for the year-ended December 31, 2025, the Company changed its accounting policy for Cash and cash equivalents to include Interest-bearing deposits at banks. Prior period amounts have been adjusted to reflect this change in accounting policy as described in note 1.

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			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss), Net			Treasury Stock		Total
Three Months Ended March 31, 2026
Balance — January 1, 2026	$	2,834	$	90		$	10,011		$	20,882		$	277		$	(4,917)	$	29,177
Fair value accounting election — residential mortgage loan servicing right assets (a)	—		—			—			197			—			—		197
Total comprehensive income	—		—			—			664			(211)			—		453

Redemption of Series G preferred stock	(400)		—		—	—		—	—		—	—		—	—		(400)
Preferred stock cash dividends	—		—			—			(43)			—			—		(43)
Purchases of treasury stock	—		—			—			—			—			(1,250)		(1,250)
Stock-based compensation transactions, net	—		—			(50)			(1)			—			112		61
Common stock cash dividends — $1.50 per share	—		—			—			(223)			—			—		(223)
Balance — March 31, 2026	$	2,434	$	90		$	9,961		$	21,476		$	66		$	(6,055)	$	27,972























Three Months Ended March 31, 2025
Balance — January 1, 2025	$	2,394	$	90		$	9,999		$	19,079		$	(164)		$	(2,371)	$	29,027
Total comprehensive income	—		—			—			584			254			—		838

Preferred stock cash dividends	—		—			—			(36)			—			—		(36)
Purchases of treasury stock	—		—			—			—			—			(662)		(662)
Stock-based compensation transactions, net	—		—			(30)			—			—			76		46
Common stock cash dividends — $1.35 per share	—		—			—			(222)			—			—		(222)
Balance — March 31, 2025	$	2,394	$	90		$	9,969		$	19,405		$	90		$	(2,957)	$	28,991

__________________________________________________________________________________

*(a)*As described in notes 1 and 12, effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value.

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 2025 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.

Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value with changes in fair value reflected in Mortgage banking revenues in the Consolidated Statement of Income. As a result, amortization associated with residential mortgage loan servicing right assets previously recognized in Other costs of operations in the Consolidated Statement of Income before 2026 is no longer recorded. Instead, beginning in 2026 fair value changes in residential mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in Mortgage banking revenues. The accounting election resulted in an increase to capitalized servicing assets, included in Accrued interest and other assets in the Consolidated Balance Sheet, of $263 million and a corresponding after-tax increase to Retained earnings of $197 million. On December 31, 2025 the Company began economically hedging the risk of fair value changes in those residential mortgage loan servicing right assets through the use of various interest rate derivative contracts, for which changes in fair value in the recent quarter are reflected in Mortgage banking revenues in the Consolidated Statement of Income.

Consolidated Statement of Cash Flows

For purposes of this statement, Cash and due from banks and federal funds sold are considered Cash and cash equivalents. Effective for the year-ended December 31, 2025, the Company changed its accounting policy to also include Interest-bearing deposits at banks, which are primarily comprised of interest-bearing deposits at the FRB of New York, as Cash and cash equivalents. The Company considers such deposits to be an immediate source of funds in its liquidity management processes and therefore considers the accounting policy election preferable. Prior period amounts in the Consolidated Statement of Cash Flows have been adjusted to reflect this change in accounting policy as summarized in the following table:


	March 31, 2025
(Dollars in millions)	Previously Reported		Adjusted
Net change in interest-bearing deposits at banks	$	(1,783)	$	—
Net cash from investing activities	(2,132)		(349)
Net change in cash, cash equivalents and restricted cash	200		1,983
Cash, cash equivalents and restricted cash at beginning of period	1,909		20,782
Cash, cash equivalents and restricted cash at end of period	2,109		22,765

During the second quarter of 2025, with the increased volume of sales and purchases of loans, the Company began separately presenting Proceeds from sales of loans, which were not originally held for sale, in the Consolidated Statement of Cash Flows. Previously proceeds from sales of loans, which were not originally held for sale, were included in Net change in loans in the Consolidated Statement of Cash Flows. Previously reported amounts for the three months ended March 31, 2025 have been reclassified to conform to the current presentation.

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1. Significant accounting policies, continued

The following table provides a description of accounting standards that were adopted by the Company in the three-month period ended March 31, 2026 as well as standards that were not yet effective at March 31, 2026 that could have an impact to M&T's consolidated financial statements upon adoption.

Recent accounting developments


Standard	Description	Required date of adoption	Effect on consolidated financial statements
Standards adopted in the three-month period ended March 31, 2026
Improvements to the accounting for purchased loans	The standard expands the population of acquired financial assets accounted for using a gross-up approach which records an initial allowance for credit losses through an adjustment to the initial amortized cost basis. Acquired loans (excluding credit cards) are deemed purchased seasoned loans and accounted for using the gross-up approach upon acquisition if criteria established by the new guidance are met. All non-PCD loans (excluding credit cards) that are acquired in a business combination are deemed seasoned.	January 1, 2027 (Early adoption permitted)	Effective January 1, 2026, the Company prospectively adopted the amended guidance, which did not have a material impact on its consolidated financial statements for the three month-period ended March 31, 2026.
Standards not yet adopted as of March 31, 2026
Income Statement - Expense disaggregation disclosures	The standard requires disclosure in the notes to financial statements of specified information about certain cost and expense captions on the income statement.	January 1, 2027 (Early adoption permitted)	The Company does not expect the guidance will have a material impact on its consolidated financial statements.
Hedge accounting improvements	The amendment expands the hedged risks permitted to be aggregated in a group of individual forecasted transactions in a cash flow hedge by changing the requirement to designate a group of individual forecasted transactions from having a shared risk exposure to having a similar risk exposure. The amendment also provides a model to facilitate the application of cash flow hedge accounting to forecasted interest payments on variable rate debt instruments that permit the borrower to change the interest rate index. The amendment also modifies certain other hedge accounting rules.	January 1, 2027 (Early adoption permitted)	The Company does not expect the guidance will have a material impact on its consolidated financial statements.
Targeted improvements to the accounting for internal-use software	The standard eliminates the concept of a software development project stage such that the guidance is agnostic to different software development methods and introduces a new threshold for cost capitalization. The standard also provides factors to consider when determining whether significant development uncertainty exists.	January 1, 2028 (Early adoption permitted)	The Company does not expect the guidance will have a material impact on its consolidated financial statements.

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2. Investment securities

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


(Dollars in millions)	Amortized Cost (a)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2026
Investment securities available for sale:
U.S. Treasury	$	3,226	$	14	$	—	$	3,240
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,735		50		3		4,782
Residential	17,257		91		143		17,205
Other	1		—		—		1
	25,219		155		146		25,228
Investment securities held to maturity:
U.S. Treasury	397		—		4		393
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	1,996		—		78		1,918
Residential	7,610		4		633		6,981
Privately issued	30		11		—		41
State and political subdivisions	2,085		—		64		2,021
Other	1		—		—		1
	12,119		15		779		11,355
Total debt securities	$	37,338	$	170	$	925	$	36,583
Equity and other securities:
Readily marketable equity — at fair value	$	280	$	3	$	2	$	281
Other — at cost	993		—		—		993
Total equity and other securities	$	1,273	$	3	$	2	$	1,274

December 31, 2025
Investment securities available for sale:
U.S. Treasury	$	6,302	$	43	$	2	$	6,343
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,738		79		1		4,816
Residential	11,953		148		59		12,042
Other	1		—		—		1
	22,994		270		62		23,202
Investment securities held to maturity:
U.S. Treasury	445		—		4		441
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,007		—		74		1,933
Residential	7,816		10		619		7,207
Privately issued	32		12		—		44
State and political subdivisions	2,129		—		40		2,089
Other	1		—		—		1
	12,430		22		737		11,715
Total debt securities	$	35,424	$	292	$	799	$	34,917
Equity and other securities:
Readily marketable equity — at fair value	$	280	$	3	$	2	$	281
Other — at cost	736		—		—		736
Total equity and other securities	$	1,016	$	3	$	2	$	1,017

__________________________________________________________________________________

*(a)*Amortized cost balances of debt securities exclude accrued interest receivable of $163 million and $187 million at March 31, 2026 and December 31, 2025, respectively, which is included in Accrued interest and other assets in the Company's Consolidated Balance Sheet.

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2. Investment securities, continued

A summary of debt investment securities that as of March 31, 2026 and December 31, 2025 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				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2026
Investment securities available for sale:
U.S. Treasury	$	248	$	—	$	—	$	—	$	248	$	—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	723		3		1		—		724		3
Residential	7,759		83		1,163		60		8,922		143
Other	—		—		1		—		1		—
	8,730		86		1,165		60		9,895		146
Investment securities held to maturity:
U.S. Treasury	—		—		393		4		393		4
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	274		4		1,644		74		1,918		78
Residential	1,010		15		5,307		618		6,317		633
Privately issued	2		—		—		—		2		—
State and political subdivisions	554		8		1,319		56		1,873		64
	1,840		27		8,663		752		10,503		779
Total	$	10,570	$	113	$	9,828	$	812	$	20,398	$	925

December 31, 2025
Investment securities available for sale:
U.S. Treasury	$	—	$	—	$	185	$	2	$	185	$	2
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	174		1		65		—		239		1
Residential	488		2		1,303		57		1,791		59
Other	—		—		1		—		1		—
	662		3		1,554		59		2,216		62
Investment securities held to maturity:
U.S. Treasury	—		—		391		4		391		4
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	28		—		1,840		74		1,868		74
Residential	139		1		6,287		618		6,426		619
Privately issued	2		—		—		—		2		—
State and political subdivisions	13		—		1,866		40		1,879		40
	182		1		10,384		736		10,566		737
Total	$	844	$	4	$	11,938	$	795	$	12,782	$	799

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2. Investment securities, continued

The Company owned 3,325 individual debt securities with aggregate gross unrealized losses of $925 million at March 31, 2026. Based on a review of each of the securities in the investment securities portfolio at March 31, 2026, including security type and issuer credit quality, the Company concluded that it expected to recover the amortized cost basis of its investment. As of March 31, 2026, 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. The Company estimated no material allowance for credit losses for its investment securities at March 31, 2026 or December 31, 2025. At March 31, 2026, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $993 million of cost method equity securities.

At March 31, 2026, the amortized cost and fair value of debt securities by contractual maturity were as follows.


(Dollars in millions)	Amortized Cost		Fair Value
Debt securities available for sale:
Due in one year or less	$	750	$	753
Due after one year through five years	2,477		2,488
Due after five years through ten years	—		—
Due after ten years	—		—
	3,227		3,241
Mortgage-backed securities	21,992		21,987
	$	25,219	$	25,228
Debt securities held to maturity:
Due in one year or less	$	409	$	405
Due after one year through five years	388		387
Due after five years through ten years	1,242		1,217
Due after ten years	444		406
	2,483		2,415
Mortgage-backed securities	9,636		8,940
	$	12,119	$	11,355

There were no significant gross realized gains or losses from sales of investment securities for the three-month periods ended March 31, 2026 and 2025.

At March 31, 2026 and December 31, 2025, investment securities with carrying values of $5.8 billion (including $64 million related to repurchase transactions) and $5.3 billion (including $67 million related to repurchase transactions), respectively, were pledged to secure outstanding borrowings, lines of credit and governmental deposits.

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3. Loans and allowance for loan losses

A summary of current, past due and nonaccrual loans as of March 31, 2026 and December 31, 2025 follows.


(Dollars in millions)	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Nonaccrual		Total (a) (b)
March 31, 2026
Commercial and industrial	$	64,543	$	311	$	2	$	535	$	65,391
Real estate:
Commercial (c)	19,607		129		—		294		20,030
Residential builder and developer	110		—		—		—		110
Other commercial construction	3,091		104		—		10		3,205
Residential (d) (e)	23,398		553		634		272		24,857
Consumer:
Home equity lines and loans (e)	4,681		31		—		84		4,796
Recreational finance	14,003		109		—		32		14,144
Automobile	4,947		60		—		9		5,016
Other	2,314		37		10		4		2,365
Total	$	136,694	$	1,334	$	646	$	1,240	$	139,914

December 31, 2025
Commercial and industrial	$	62,626	$	390	$	5	$	527	$	63,548
Real estate:
Commercial (c)	19,505		364		3		320		20,192
Residential builder and developer	69		—		—		—		69
Other commercial construction	3,436		109		—		13		3,558
Residential (d) (e)	23,410		657		543		264		24,874
Consumer:
Home equity lines and loans (e)	4,690		35		—		82		4,807
Recreational finance	13,946		116		—		30		14,092
Automobile	5,097		59		—		11		5,167
Other	2,357		23		10		5		2,395
Total	$	135,136	$	1,753	$	561	$	1,252	$	138,702

__________________________________________________________________________________

*(a)*Balances include net discounts, comprised of unamortized premiums, discounts and net deferred loan fees and costs of $269 million and $276 million at March 31, 2026 and December 31, 2025, respectively.

*(b)*Balances exclude accrued interest receivable of $616 million and $627 million at March 31, 2026 and December 31, 2025, respectively, which is included in Accrued interest and other assets in the Consolidated Balance Sheet.

*(c)*Commercial real estate loans held for sale were $359 million at March 31, 2026 and $484 million at December 31, 2025.

*(d)*Residential real estate loans held for sale were $327 million at March 31, 2026 and $441 million at December 31, 2025.

*(e)*There were $185 million and $182 million at March 31, 2026 and December 31, 2025, respectively, of loans secured by residential real estate that were in the process of foreclosure. At March 31, 2026, approximately 55% of those residential real estate loans in the process of foreclosure were government guaranteed.

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3. Loans and allowance for loan losses, continued

At March 31, 2026, approximately $22.0 billion of commercial and industrial loans, $13.6 billion of commercial real estate loans, $19.6 billion of one-to-four family residential real estate loans, $3.0 billion of home equity loans and lines of credit and $15.1 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. At December 31, 2025, approximately $20.7 billion of commercial and industrial loans, $13.4 billion of commercial real estate loans, $19.5 billion of one-to-four family residential real estate loans, $3.0 billion of home equity loans and lines of credit and $15.2 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. As further described in notes 4 and 11, loans totaling $2.4 billion and $2.1 billion at March 31, 2026 and December 31, 2025, respectively, were held in special purpose trusts to settle the obligations of certain asset-backed notes issued by those trusts which have been included in the Company's consolidated financial statements.

Credit quality indicators

The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. The following table summarizes the loan grades applied at March 31, 2026 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans and gross charge-offs for those types of loans for the three-month period ended March 31, 2026 by origination year.


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
(Dollars in millions)	2026		2025		2024		2023		2022		Prior
Commercial and industrial:
Pass	$	3,057	$	9,161	$	6,171	$	3,664	$	3,746	$	6,752	$	29,241	$	101	$	61,893
Criticized accrual	12		231		353		452		310		349		1,219		37		2,963
Criticized nonaccrual	1		16		63		74		78		175		111		17		535
Total commercial and industrial	$	3,070	$	9,408	$	6,587	$	4,190	$	4,134	$	7,276	$	30,571	$	155	$	65,391
Gross charge-offs three months ended March 31, 2026	$	—	$	4	$	6	$	5	$	4	$	4	$	23	$	—	$	46

Real estate:
Commercial:
Pass	$	999	$	3,317	$	423	$	1,556	$	1,579	$	9,598	$	337	$	—	$	17,809
Criticized accrual	—		9		2		275		275		1,366		—		—		1,927
Criticized nonaccrual	—		24		—		1		23		246		—		—		294
Total commercial real estate	$	999	$	3,350	$	425	$	1,832	$	1,877	$	11,210	$	337	$	—	$	20,030
Gross charge-offs three months ended March 31, 2026	$	—	$	—	$	—	$	1	$	2	$	14	$	—	$	—	$	17

Residential builder and developer:
Pass	$	41	$	14	$	1	$	1	$	1	$	5	$	34	$	—	$	97
Criticized accrual	—		—		—		—		13		—		—		—		13
Criticized nonaccrual	—		—		—		—		—		—		—		—		—
Total residential builder and developer	$	41	$	14	$	1	$	1	$	14	$	5	$	34	$	—	$	110
Gross charge-offs three months ended March 31, 2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Other commercial construction:
Pass	$	59	$	419	$	229	$	932	$	521	$	162	$	63	$	—	$	2,385
Criticized accrual	—		—		9		152		438		210		1		—		810
Criticized nonaccrual	—		—		—		—		8		2		—		—		10
Total other commercial construction	$	59	$	419	$	238	$	1,084	$	967	$	374	$	64	$	—	$	3,205
Gross charge-offs three months ended March 31, 2026	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1

- 16 -

3. 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 March 31, 2026 for the various classes of the Company’s residential real estate loans and consumer loans and gross charge-offs for those types of loans for the three-month period ended March 31, 2026 by origination year follows.


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
(Dollars in millions)	2026		2025		2024		2023		2022		Prior
Residential real estate:
Current	$	1,029	$	3,214	$	1,696	$	1,128	$	4,001	$	12,197	$	133	$	—	$	23,398
30-89 days past due	—		13		8		23		91		418		—		—		553
Accruing loans past due 90 days or more	—		2		10		27		158		437		—		—		634
Nonaccrual	—		1		5		4		43		219		—		—		272
Total residential real estate	$	1,029	$	3,230	$	1,719	$	1,182	$	4,293	$	13,271	$	133	$	—	$	24,857
Gross charge-offs three months ended March 31, 2026	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1


Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	—	$	—	$	72	$	3,340	$	1,269	$	4,681
30-89 days past due	—		—		—		—		—		1		—		30		31
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		4		1		79		84
Total home equity lines and loans	$	—	$	—	$	—	$	—	$	—	$	77	$	3,341	$	1,378	$	4,796
Gross charge-offs three months ended March 31, 2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	1

Recreational finance:
Current	$	853	$	3,817	$	2,876	$	1,626	$	1,598	$	3,233	$	—	$	—	$	14,003
30-89 days past due	—		11		19		17		17		45		—		—		109
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		3		4		10		4		11		—		—		32
Total recreational finance	$	853	$	3,831	$	2,899	$	1,653	$	1,619	$	3,289	$	—	$	—	$	14,144
Gross charge-offs three months ended March 31, 2026	$	—	$	5	$	9	$	10	$	7	$	15	$	—	$	—	$	46

Automobile:
Current	$	385	$	1,796	$	1,523	$	495	$	407	$	341	$	—	$	—	$	4,947
30-89 days past due	—		11		17		13		10		9		—		—		60
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		3		2		1		1		2		—		—		9
Total automobile	$	385	$	1,810	$	1,542	$	509	$	418	$	352	$	—	$	—	$	5,016
Gross charge-offs three months ended March 31, 2026	$	—	$	3	$	5	$	2	$	2	$	1	$	—	$	—	$	13

Other:
Current	$	88	$	266	$	134	$	76	$	48	$	43	$	1,658	$	1	$	2,314
30-89 days past due	2		2		2		1		1		1		27		1		37
Accruing loans past due 90 days or more	—		—		—		—		—		—		10		—		10
Nonaccrual	1		1		1		—		—		1		—		—		4
Total other	$	91	$	269	$	137	$	77	$	49	$	45	$	1,695	$	2	$	2,365
Gross charge-offs three months ended March 31, 2026	$	—	$	6	$	3	$	1	$	—	$	—	$	18	$	—	$	28

Total loans at March 31, 2026	$	6,527	$	22,331	$	13,548	$	10,528	$	13,371	$	35,899	$	36,175	$	1,535	$	139,914
Total gross charge-offs for the three months ended March 31, 2026	$	—	$	18	$	23	$	19	$	15	$	36	$	41	$	1	$	153

- 17 -

3. Loans and allowance for loan losses, continued

The following table summarizes the loan grades applied at December 31, 2025 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)	2025		2024		2023		2022		2021		Prior				Total
Commercial and industrial:
Pass	$	9,462	$	6,640	$	4,075	$	4,086	$	2,203	$	5,059	$	28,124	$	95	$	59,744
Criticized accrual	216		337		479		390		116		348		1,355		36		3,277
Criticized nonaccrual	8		49		72		65		25		155		136		17		527
Total commercial and industrial	$	9,686	$	7,026	$	4,626	$	4,541	$	2,344	$	5,562	$	29,615	$	148	$	63,548
Real estate:
Commercial:
Pass	$	3,757	$	400	$	1,535	$	1,681	$	1,121	$	8,970	$	367	$	—	$	17,831
Criticized accrual	—		29		283		244		80		1,404		1		—		2,041
Criticized nonaccrual	24		—		4		25		49		218		—		—		320
Total commercial real estate	$	3,781	$	429	$	1,822	$	1,950	$	1,250	$	10,592	$	368	$	—	$	20,192
Residential builder and developer:
Pass	$	9	$	1	$	2	$	2	$	—	$	5	$	38	$	—	$	57
Criticized accrual	—		—		—		12		—		—		—		—		12
Criticized nonaccrual	—		—		—		—		—		—		—		—		—
Total residential builder and developer	$	9	$	1	$	2	$	14	$	—	$	5	$	38	$	—	$	69
Other commercial construction:
Pass	$	313	$	221	$	1,031	$	606	$	63	$	198	$	45	$	—	$	2,477
Criticized accrual	—		8		251		493		136		174		6		—		1,068
Criticized nonaccrual	—		—		—		8		1		4		—		—		13
Total other commercial construction	$	313	$	229	$	1,282	$	1,107	$	200	$	376	$	51	$	—	$	3,558

- 18 -

3. Loans and allowance for loan losses, continued

A summary of loans in accrual and nonaccrual status at December 31, 2025 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)	2025		2024		2023		2022		2021		Prior
Residential real estate:
Current	$	3,769	$	1,797	$	1,188	$	4,040	$	3,433	$	9,056	$	127	$	—	$	23,410
30-89 days past due	10		11		19		117		93		407		—		—		657
Accruing loans past due 90 days or more	1		8		21		126		90		297		—		—		543
Nonaccrual	—		4		3		40		19		197		1		—		264
Total residential real estate	$	3,780	$	1,820	$	1,231	$	4,323	$	3,635	$	9,957	$	128	$	—	$	24,874
Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	—	$	1	$	76	$	3,362	$	1,251	$	4,690
30-89 days past due	—		—		—		—		—		2		—		33		35
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		2		1		79		82
Total home equity lines and loans	$	—	$	—	$	—	$	—	$	1	$	80	$	3,363	$	1,363	$	4,807
Recreational finance:
Current	$	4,081	$	3,052	$	1,729	$	1,673	$	1,345	$	2,066	$	—	$	—	$	13,946
30-89 days past due	10		20		25		17		15		29		—		—		116
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	2		5		6		4		4		9		—		—		30
Total recreational finance	$	4,093	$	3,077	$	1,760	$	1,694	$	1,364	$	2,104	$	—	$	—	$	14,092
Automobile:
Current	$	1,933	$	1,690	$	561	$	473	$	336	$	104	$	—	$	—	$	5,097
30-89 days past due	8		17		13		10		7		4		—		—		59
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	2		3		1		2		2		1		—		—		11
Total automobile	$	1,943	$	1,710	$	575	$	485	$	345	$	109	$	—	$	—	$	5,167
Other:
Current	$	312	$	155	$	89	$	56	$	42	$	22	$	1,680	$	1	$	2,357
30-89 days past due	3		2		1		1		—		—		15		1		23
Accruing loans past due 90 days or more	—		—		—		—		—		—		10		—		10
Nonaccrual	2		1		1		—		—		1		—		—		5
Total other	$	317	$	158	$	91	$	57	$	42	$	23	$	1,705	$	2	$	2,395
Total loans at December 31, 2025	$	23,922	$	14,450	$	11,389	$	14,171	$	9,181	$	28,808	$	35,268	$	1,513	$	138,702

- 19 -

3. 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 portfolios by loan type. Changes in the allowance for loan losses and the reserve for unfunded credit commitments for the three-month periods ended March 31, 2026 and 2025 were as follows.


	Allowance for Loan Losses														Reserve for Unfunded Credit Commitments (a)
	Commercial and Industrial			Real Estate
(Dollars in millions)			Commercial			Residential			Consumer			Total
Three Months Ended March 31, 2026
Beginning balance	$	771		$	472		$	100		$	773		$	2,116	$	80
Provision for credit losses	71			(34)			(2)			90			125		15
Net charge-offs:
Charge-offs	(46)			(18)			(1)			(88)			(153)		—
Recoveries	21			1			2			24			48		—
Net charge-offs	(25)			(17)			1			(64)			(105)		—
Ending balance	$	817		$	421		$	99		$	799		$	2,136	$	95

Three Months Ended March 31, 2025
Beginning balance	$	769		$	599		$	108		$	708		$	2,184	$	60
Provision for credit losses	22			30			(3)			81			130		—
Net charge-offs:
Charge-offs	(50)			(22)			(2)			(86)			(160)		—
Recoveries	21			3			2			20			46		—
Net charge-offs	(29)			(19)			—			(66)			(114)		—
Ending balance	$	762		$	610		$	105		$	723		$	2,200	$	60

__________________________________________________________________________________

*(a)*Further information about unfunded credit commitments is included in note 13.

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 evaluated collectively, generally through the use of statistically developed credit models or other quantitative methodologies. The statistically developed models project principal balances over the remaining contractual lives of the loan portfolios and determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including loan grade and borrower repayment performance, can inform the models, which have been statistically developed based on historical correlations of credit losses with prevailing economic metrics, including unemployment, GDP and real estate prices. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At each of March 31, 2026 and December 31, 2025, 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

- 20 -

3. Loans and allowance for loan losses, continued

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.

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.

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 periods ended March 31, 2026 and 2025 follows.


	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized
(Dollars in millions)	March 31, 2026						January 1, 2026		Three Months Ended March 31, 2026
Commercial and industrial	$	466	$	69	$	535	$	527	$	7
Real estate:
Commercial	201		93		294		320		1
Residential builder and developer	—		—		—		—		—
Other commercial construction	2		8		10		13		—
Residential	107		165		272		264		2

Consumer:
Home equity lines and loans	41		43		84		82		2
Recreational finance	17		15		32		30		—
Automobile	7		2		9		11		—
Other	4		—		4		5		—
Total	$	845	$	395	$	1,240	$	1,252	$	12
	March 31, 2025						January 1, 2025		Three Months Ended March 31, 2025
Commercial and industrial	$	522	$	140	$	662	$	696	$	6
Real estate:
Commercial	341		53		394		468		7
Residential builder and developer	1		—		1		2		—
Other commercial construction	23		5		28		66		—
Residential	135		149		284		279		3

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

- 21 -

3. Loans and allowance for loan losses, continued

Loan modifications

The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month periods ended March 31, 2026 and 2025.


	Amortized Cost (a)
(Dollars in millions)	Term Extension		Other (b)		Combination of Modification Types (c)		Total (d) (e)		Percent of Total Loan Class
Three Months Ended March 31, 2026
Commercial and industrial	$	78	$	10	$	35	$	123	.19	%
Real estate:
Commercial	261		8		74		343		1.71
Residential builder and developer	9		—		—		9		7.86
Other commercial construction	61		—		—		61		1.90
Residential	14		3		4		21		.09

Consumer:
Home equity lines and loans	—		—		1		1		.01
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	423	$	21	$	114	$	558	.40	%

Three Months Ended March 31, 2025
Commercial and industrial	$	35	$	2	$	74	$	111	.18	%
Real estate:
Commercial	131		—		—		131		.65
Residential builder and developer	—		—		—		—		—
Other commercial construction	225		—		—		225		4.53
Residential	40		3		7		50		.22

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

__________________________________________________________________________________

*(a)*As of the respective period end.

*(b)*Loan modifications comprised of payment deferrals or interest rate reductions.

*(c)*Primarily term extensions combined with payment deferrals or interest rate reductions.

*(d)*Includes approximately $14 million and $36 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month periods ended March 31, 2026 and 2025, respectively.

*(e)*Excludes unfunded commitments to extend credit totaling $31 million and $9 million for the three-month periods ended March 31, 2026 and 2025, respectively.

- 22 -

3. Loans and allowance for loan losses, continued

The financial effects of the modifications on the weighted-average remaining term of modified loans for the three-month periods ended March 31, 2026 and 2025 are summarized in the following table.


	Three Months Ended March 31,
(In years)	2026	2025
Increase to weighted-average remaining term
Commercial and industrial	2.0	0.8
Real estate:
Commercial (a)	1.0	0.8
Residential	11.2	9.0

__________________________________________________________________________________

*(a)*Inclusive of residential builder and developer loans and other commercial construction loans.

The following table summarizes the payment status, at March 31, 2026 and 2025, of loans to borrowers experiencing financial difficulty that were modified during the twelve-month periods ended March 31, 2026 and 2025, respectively.


	Amortized Cost (a)
(Dollars in millions)	Current		30-89 Days Past Due		Past Due 90 Days or More (b)		Total
Twelve Months Ended March 31, 2026
Commercial and industrial	$	198	$	13	$	14	$	225
Real estate:
Commercial	626		31		16		673
Residential builder and developer	12		—		—		12
Other commercial construction	120		32		—		152
Residential (c)	89		34		54		177

Consumer:
Home equity lines and loans	2		—		—		2
Recreational finance	1		—		—		1
Automobile	—		—		—		—
Other	3		8		—		11
Total	$	1,051	$	118	$	84	$	1,253


Twelve Months Ended March 31, 2025
Commercial and industrial	$	293	$	3	$	17	$	313
Real estate:
Commercial	419		49		—		468
Residential builder and developer	1		—		—		1
Other commercial construction	289		30		9		328
Residential (c)	104		35		41		180

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

__________________________________________________________________________________

(a) At the respective period end.

(b) Predominantly loan modifications of term extensions or term extensions combined with interest rate reductions.

(c) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $31 million and $29 million and as past due 90 days or more of $51 million and $34 million at March 31, 2026 and 2025, respectively.

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.

- 23 -

4. Borrowings

The following table summarizes the Company's short-term and long-term borrowings at March 31, 2026 and December 31, 2025.


(Dollars in millions)	March 31, 2026		December 31, 2025
Short-term borrowings
Repurchase agreements	$	51	$	49
Advances from FHLB	7,800		2,100
Total short-term borrowings	$	7,851	$	2,149

Long-term borrowings
Senior notes — M&T	$	5,550	$	5,583
Senior notes — M&T Bank	1,946		1,946
Advances from FHLB	3		3
Subordinated notes — M&T	747		747
Subordinated notes — M&T Bank	489		489
Junior subordinated debentures — M&T (a)	403		403
Asset-backed notes (a)	2,027		1,730
Other	10		10
Total long-term borrowings	$	11,175	$	10,911

__________________________________________________________________________________

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

At March 31, 2026, M&T Bank had borrowing facilities available with the FHLB of New York whereby M&T Bank could borrow up to approximately $20.7 billion, of which $7.8 billion was outstanding at March 31, 2026. Additionally, M&T Bank had an available line of credit with the FRB of New York totaling approximately $26.5 billion at March 31, 2026. 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.

In April 2026, M&T issued $500 million of subordinated notes that mature in April 2036 and pay a fixed rate of 5.295% semi-annually until April 2031 which, unless redeemed by M&T at that time, will reset to the U.S. Treasury rate for a five year maturity plus 1.38% until maturity. In April and May 2026, M&T Bank issued a combined $1.2 billion of senior unsecured notes that mature in April 2030 and pay a 4.548% fixed rate semi-annually until April 2029 after which SOFR plus 0.94% will be paid quarterly until maturity.

- 24 -

5. Shareholders' equity

M&T is authorized to issue 20,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence. Issued and outstanding preferred stock of M&T as of March 31, 2026 and December 31, 2025 is presented below.


(Dollars in millions, except per share)	Shares Issued and Outstanding		Liquidation Preference Per Share		Issuance Date	Earliest Redemption Date	Annual Dividend Rate		Carrying Amount				Dividends Per Share
													Three Months Ended March 31,
Series	March 31, 2026	December 31, 2025							March 31, 2026		December 31, 2025		2026		2025
Series F (a)	50,000	50,000	$	10,000	10/28/2016	11/1/2026	5.125	%	$	500	$	500	$	128.13	$	128.13
Series G (b)	—	40,000	10,000		—	—	—		—		400		182.60		182.60
Series H (c)	10,000,000	10,000,000	25		4/1/2022	4/1/2027	5.625		261		261		0.35		0.35
Series I (d)	50,000	50,000	10,000		8/17/2021	9/1/2026	3.500		500		500		87.50		87.50
Series J (e)	75,000	75,000	10,000		5/13/2024	6/15/2029	7.500		733		733		187.50		187.50
Series K (f)	45,000	45,000	10,000		10/31/2025	12/15/2030	6.350		440		440		158.75		—
Total	10,220,000	10,260,000							$	2,434	$	2,834

__________________________________________________________________________________

*(a)*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.

*(b)*On February 1, 2026, M&T redeemed all outstanding shares of the Series G Preferred Stock at par value.

*(c)*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.

*(d)*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%.

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

*(f)*Dividends, if declared, are paid quarterly at a rate of 6.35%.

6. Revenue from contracts with customers

The Company generally charges customer accounts or otherwise bills customers upon completion of its services. Typically, the Company’s contracts with customers have a duration of one year or less and payment for services is received at least annually, but oftentimes more frequently as services are provided. At March 31, 2026 and December 31, 2025, the Company had $73 million and $75 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 March 31, 2026 and December 31, 2025, the Company had deferred revenue of $52 million and $54 million, respectively, related to the sources in the accompanying tables included in Accrued interest and other liabilities in the Company's Consolidated Balance Sheet.

- 25 -

6. Revenue from contracts with customers, continued

The following tables summarize sources of the Company’s noninterest income during the three-month periods ended March 31, 2026 and 2025 that are subject to the revenue recognition accounting guidance.


(Dollars in millions)	Commercial Bank		Retail Bank		Institutional Services and Wealth Management		Total
Three Months Ended March 31, 2026
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	47	$	92	$	—	$	139
Trust income	1		—		182		183
Brokerage services income	1		—		34		35
Other revenues from operations:
Merchant discount and credit card interchange fees	15		22		—		37
Other	15		7		2		24
	$	79	$	121	$	218	$	418

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

7. Pension plans and other postretirement benefits

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


	Pension Benefits				Other Postretirement Benefits
(Dollars in millions)	Three Months Ended March 31,
Net periodic pension (benefit)/cost	2026		2025		2026		2025
Service cost	$	2	$	2	$	—	$	—
Interest cost on benefit obligation	23		27		1		1
Expected return on plan assets	(43)		(46)		—		—

Amortization of prior service credit and actuarial gains	—		(1)		(1)		(1)
Net periodic benefit	$	(18)	$	(18)	$	—	$	—

Service cost is reflected in Salaries and employee benefits and the other components of net periodic benefit cost are reflected in Other costs of operations in the Consolidated Statement of Income. Expenses incurred in connection with the Company's defined contribution pension and retirement savings plans totaled $50 million for each of the three months ended March 31, 2026 and 2025.

- 26 -

8. Earnings per common share

The computations of basic earnings per common share follow.


	Three Months Ended March 31,
(Dollars in millions, except per share, shares in thousands)	2026		2025
Income available to common shareholders:
Net income	$	664	$	584
Less: Preferred stock dividends	(43)		(36)
Net income available to common equity	621		548
Less: Income attributable to unvested stock-based compensation awards	(1)		(1)
Net income available to common shareholders	$	620	$	547
Weighted-average shares outstanding:
Common shares outstanding and unvested stock-based compensation awards	149,487		164,520
Less: Unvested stock-based compensation awards	(262)		(311)
Weighted-average shares outstanding	149,225		164,209

Basic earnings per common share	$	4.16	$	3.33

The computations of diluted earnings per common share follow.


	Three Months Ended March 31,
(Dollars in millions, except per share, shares in thousands)	2026		2025
Net income available to common equity	$	621	$	548
Less: Income attributable to unvested stock-based compensation awards	(1)		(1)
Net income available to common shareholders	$	620	$	547
Adjusted weighted-average shares outstanding:
Common shares outstanding and unvested stock-based compensation awards	149,487		164,520
Less: Unvested stock-based compensation awards	(262)		(311)
Plus: Incremental shares from assumed conversion of stock-based compensation awards	884		838
Adjusted weighted-average shares outstanding	150,109		165,047

Diluted earnings per common share	$	4.13	$	3.32

Stock-based compensation awards to purchase common stock of M&T representing common shares of 0.1 million in each of the three-month periods ended March 31, 2026 and 2025 were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

- 27 -

9. Comprehensive income

The following table displays the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income during the three-month periods ended March 31, 2026 and 2025.


(Dollars in millions)	Investment Securities		Cash Flow Hedges		Defined Benefit Plans		Other		Total Amount Before Tax			Income Tax		Net
Balance — January 1, 2026	$	208	$	90	$	81	$	(7)	$	372		$	(95)	$	277
Other comprehensive income before reclassifications:
Unrealized holding losses, net	(195)		—		—		—		(195)			49		(146)
Unrealized losses, net	—		(76)		—		—		(76)			20		(56)
Other	—		—		—		(1)		(1)			—		(1)

Total other comprehensive income (loss) before reclassifications	(195)		(76)		—		(1)		(272)			69		(203)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Net gains realized in net income	(4)		—		—		—		(4)		(a)	1		(3)
Net yield adjustment from cash flow hedges currently in effect	—		(5)		—		—		(5)		(b)	1		(4)
Amortization of prior service credit and actuarial gains	—		—		(1)		—		(1)		(c)	—		(1)


Total other comprehensive income (loss)	(199)		(81)		(1)		(1)		(282)			71		(211)
Balance — March 31, 2026	$	9	$	9	$	80	$	(8)	$	90		$	(24)	$	66


Balance — January 1, 2025	$	(205)	$	(135)	$	131	$	(10)	$	(219)		$	55	$	(164)
Other comprehensive income before reclassifications:
Unrealized holding gains, net	197		—		—		—		197			(50)		147
Unrealized gains, net	—		91		—		—		91			(23)		68
Other	—		—		—		1		1			—		1

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



Net yield adjustment from cash flow hedges currently in effect	—		53		—		—		53		(b)	(13)		40
Amortization of prior service credit and actuarial gains	—		—		(2)		—		(2)		(c)	—		(2)

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

__________________________________________________________________________________

*(a)*Included in Gain (loss) on bank investment securities in the Consolidated Statement of Income.

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

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

Accumulated other comprehensive income (loss), net during the three-month periods ended March 31, 2026 and 2025 consisted of the following.


(Dollars in millions)	Investment Securities		Cash Flow Hedges		Defined Benefit Plans		Other		Total
Balance — January 1, 2026	$	155	$	67	$	61	$	(6)	$	277
Net loss during period	(149)		(60)		(1)		(1)		(211)
Balance — March 31, 2026	$	6	$	7	$	60	$	(7)	$	66

Balance — January 1, 2025	$	(153)	$	(101)	$	98	$	(8)	$	(164)
Net gain (loss) during period	147		108		(2)		1		254
Balance — March 31, 2025	$	(6)	$	7	$	96	$	(7)	$	90

- 28 -

10. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting, collateral and/or settlement provisions protecting the at-risk party.

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


	Notional Amount		Weighted-Average Maturity (In years)	Weighted- Average Rate				Fair Value Gain (Loss) (a)
(Dollars in millions)			Fixed	Variable
March 31, 2026
Fair value hedges:
Fixed rate long-term borrowings (b)	$	6,100	4.6	3.56	%	3.81	%	$	7

Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (c)	25,525		1.1	3.63		3.66		5
Total	$	31,625	1.8					$	12
December 31, 2025
Fair value hedges:
Fixed rate long-term borrowings (b) (d)	$	6,100	4.8	3.56	%	4.02	%	$	(9)

Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (e)	24,900		1.3	3.63		3.81		(6)
Total	$	31,000	2.0					$	(15)

__________________________________________________________________________________

*(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 $56 million and $6 million at March 31, 2026 and December 31, 2025, respectively. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of gains of $4 million and $96 million at March 31, 2026 and December 31, 2025, respectively.

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

*(c)*Includes notional amount and terms of $10.5 billion of forward-starting interest rate swap agreements that become effective in 2026 and 2027.

*(d)*Includes notional amount and terms of $1.8 billion of forward-starting interest rate swap agreements that became effective in 2026.

*(e)*Includes notional amount and terms of $9.7 billion of forward-starting interest rate swap agreements that become effective in 2026 and 2027.

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 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.

As described in note 1, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value. In preparation for this election, on December 31, 2025 the Company began economically hedging the risk of fair value changes in those residential mortgage loan servicing right assets through the use of various interest rate derivative contracts with a total notional value of $1.7 billion and $1.6 billion at March 31, 2026 and December 31, 2025, respectively. Changes in the fair value of such derivative contracts in 2026 are included in Mortgage banking revenues in the Company's Consolidated Statement of Income.

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 $44.0 billion and $43.0 billion at March 31, 2026 and December 31, 2025, respectively. The notional amounts of foreign currency and other option and futures contracts not designated as hedging instruments aggregated $2.3 billion and $2.4 billion at March 31, 2026 and December 31, 2025, respectively.

- 29 -

10. Derivative financial instruments, continued

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


	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
(Dollars in millions)	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements	$	12	$	—	$	—	$	15
Commitments to sell real estate loans	17		1		1		1
	29		1		1		16
Derivatives not designated and qualifying as hedging instruments (a)
Mortgage banking:
Commitments to originate real estate loans for sale	9		17		3		21
Commitments to sell real estate loans	11		24		2		6
Interest rate contracts (b)	9		13		4		2
	29		54		9		29
Other:
Interest rate contracts (b)	140		173		398		394
Foreign exchange and other option and futures contracts	19		17		17		15
	159		190		415		409
Total derivatives	$	217	$	245	$	425	$	454

__________________________________________________________________________________

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

*(b)*The impact of variation margin payments at March 31, 2026 and December 31, 2025 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $362 million and $341 million, respectively, and in a liability position of $15 million and $32 million, respectively.


	Amount of Gain (Loss) Recognized
	Three Months Ended March 31,
	2026				2025
(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)	$	(33)	$	33	$	93	$	(92)

Total	$	(33)	$	33	$	93	$	(92)
Derivatives not designated as hedging instruments
Interest rate contracts (b)	$	10			$	5
Foreign exchange and other option and futures contracts (c)	6				4
Total	$	16			$	9

__________________________________________________________________________________

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

*(b)*Includes gains of $8 million and $5 million in Trading account and other non-hedging derivative gains for the three months ended March 31, 2026 and 2025, respectively, and gains of $2 million in Mortgage banking revenues in the Company's Consolidated Statement of Income for the three months ended March 31, 2026.

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


	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
(Dollars in millions)	March 31, 2026		December 31, 2025		March 31, 2026		December 31, 2025
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges
Long-term borrowings	$	6,039	$	6,072	$	(49)	$	(16)

- 30 -

10. Derivative financial instruments, continued

The net effect of interest rate swap agreements was to increase net interest income by $1 million and decrease net interest income by $62 million during the three-month periods ended March 31, 2026 and 2025, respectively. The amount of interest income recognized in the Company's Consolidated Statement of Income associated with derivatives designated as cash flow hedges was an increase of $5 million and a decrease of $53 million for the three-month periods ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the unrealized gain recognized in other comprehensive income related to cash flow hedges was $9 million of which gains of $6 million are expected to be reclassified into earnings over the next twelve months.

The Company predominantly 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 $172 million and $224 million at March 31, 2026 and December 31, 2025, 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 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. Interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and may contain illiquid cross-collateral provisions with customer credit facilities. Information about master netting agreements and collateral postings related to the derivative instruments in the Company's Consolidated Balance Sheet follows.

- 31 -

10. Derivative financial instruments, continued


(Dollars in millions)	Fair Value Amount in Consolidated Balance Sheet		Master Netting Agreements		Collateral (a)		Net Amount
March 31, 2026
Derivative assets
Clearinghouse settlements (b)	$	13	$	—	$	—	$	13
Subject to master netting agreements	117		(24)		(93)		—
Not subject to master netting agreements (c)	87		—		(2)		85
Total	$	217	$	(24)	$	(95)	$	98
Derivative liabilities
Clearinghouse settlements (b)	$	1	$	—	$	—	$	1
Subject to master netting agreements	21		(24)		22		19
Not subject to master netting agreements (c)	403		—		(1)		402
Total	$	425	$	(24)	$	21	$	422

December 31, 2025
Derivative assets
Clearinghouse settlements (b)	$	8	$	—	$	—	$	8
Subject to master netting agreements	98		(33)		(49)		16
Not subject to master netting agreements (c)	139		—		—		139
Total	$	245	$	(33)	$	(49)	$	163
Derivative liabilities
Clearinghouse settlements (b)	$	16	$	—	$	—	$	16
Subject to master netting agreements	38		(33)		(7)		(2)
Not subject to master netting agreements (c)	400		—		(1)		399
Total	$	454	$	(33)	$	(8)	$	413

__________________________________________________________________________________

*(a)*Collateral column only includes posting of cash and investment securities and excludes initial margin amounts posted to clearinghouses.

*(b)*The fair value of derivative assets and derivative liabilities subject to clearinghouse settlements are presented net of the variation margin payments in the Consolidated Balance Sheet.

*(c)*The fair value of derivative assets and derivative liabilities not subject to master netting agreements predominantly relate to transactions with commercial customers.

11. 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 equipment finance loans and leases, automobile loans or recreational finance 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.

- 32 -

11. Variable interest entities and asset securitizations, continued

Information about the asset-backed notes issued to investors and the respective special purpose trust at March 31, 2026 and December 31, 2025 are included in the following table.


(Dollars in millions)		March 31, 2026							December 31, 2025
Issue Date	Collateral Type	Remaining Loan Collateral Balance		Asset-Backed Notes to Investors		Weighted-Average Life (In years)	Weighted-Average Rate		Remaining Loan Collateral Balance		Asset-Backed Notes to Investors
August 2023	Equipment finance loans and leases	$	209	$	109	0.5	5.74	%	$	244	$	141
March 2024	Automobile loans	223		211		1.1	5.20		252		239
August 2024	Equipment finance loans and leases	432		355		1.3	4.84		483		396
February 2025	Automobile loans	476		460		1.3	4.68		529		513
May 2025	Equipment finance loans and leases	501		406		1.6	4.76		546		441
February 2026	Recreational finance loans	544		486		4.6	4.35		—		—
				$	2,027						$	1,730

M&T has issued Junior Subordinated Debentures payable to various trusts that have issued Preferred Capital Securities and Common Securities. M&T owns the Common Securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At each of March 31, 2026 and December 31, 2025, the Company included the Junior Subordinated Debentures in Long-term borrowings in the Company's Consolidated Balance Sheet and recognized $16 million 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 $10.9 billion and $10.7 billion at March 31, 2026 and December 31, 2025, 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. Information on the Company's carrying amount of its investments in tax equity partnerships and its related future funding commitments are presented in the following table.


(Dollars in millions)	March 31, 2026		December 31, 2025
Affordable housing projects:
Carrying amount (a)	$	1,819	$	1,867
Amount of future funding commitments included in carrying amount (b)	859		889
Contingent commitments	109		109
Renewable energy:
Carrying amount (a)	70		67
Amount of future funding commitments included in carrying amount (b)	35		66
Other:
Carrying amount (a)	46		33
Amount of future funding commitments included in carrying amount (b)	—		—

__________________________________________________________________________________

*(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.

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11. Variable interest entities and asset securitizations, continued

The reduction to income tax expense recognized from the Company's investments in partnerships accounted for using the proportional amortization method was $16 million (net of $49 million of investment amortization) and $9 million (net of $44 million of investment amortization) for the three months ended March 31, 2026 and 2025, respectively. The net reduction to income tax expense has been reported in Net change in other accrued income and expense in the Consolidated Statement of Cash Flows. While the Company has elected to apply the proportional amortization method for renewable energy credit investments, at March 31, 2026 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 for each of the three months ended March 31, 2026 and 2025. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company has not provided financial or other support to the partnerships that was not contractually required. Although the Company currently estimates that no material losses are probable, its maximum exposure to loss from its investments in such partnerships as of March 31, 2026 was $2.3 billion, including possible recapture of certain tax credits.

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

12. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. Effective January 1, 2026 the Company has elected to account for its residential mortgage loan servicing right assets at fair value. Further information about this election is included in note 1. The Company has not made any other fair value elections at March 31, 2026.

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 fair value on a recurring basis and on a nonrecurring basis is included in notes 1 and 19 of Notes to Financial Statements in M&T's 2025 Annual Report.

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12. Fair value measurements, continued

Recurring fair value measurements

The following tables present assets and liabilities at March 31, 2026 and December 31, 2025 measured at fair value on a recurring basis.


(Dollars in millions)	Fair Value Measurements		Level 1		Level 2		Level 3
March 31, 2026
Trading account	$	92	$	12	$	80	$	—
Investment securities available for sale:
U.S. Treasury	3,240		—		3,240		—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,782		—		4,782		—
Residential	17,205		—		17,205		—
Other	1		—		1		—
Total investment securities available for sale	25,228		—		25,228		—
Equity securities	281		281		—		—
Real estate loans held for sale	686		—		686		—
Residential mortgage loan servicing rights	542		—		—		542
Other assets	217		—		215		2
Total assets	$	27,046	$	293	$	26,209	$	544
Other liabilities	$	425	$	—	$	425	$	—
Total liabilities	$	425	$	—	$	425	$	—

December 31, 2025
Trading account	$	97	$	12	$	85	$	—
Investment securities available for sale:
U.S. Treasury	6,343		—		6,343		—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,816		—		4,816		—
Residential	12,042		—		12,042		—
Other	1		—		1		—
Total investment securities available for sale	23,202		—		23,202		—
Equity securities	281		281		—		—
Real estate loans held for sale	925		—		925		—
Other assets	245		—		242		3
Total assets	$	24,750	$	293	$	24,454	$	3
Other liabilities	$	454	$	—	$	454	$	—
Total liabilities	$	454	$	—	$	454	$	—

The changes in fair value of residential mortgage loans servicing right assets for the three months ended March 31, 2026 are presented in the following table.


(Dollars in millions)	Residential Mortgage Loan Servicing Rights (Level 3)
Balance at December 31, 2025 — at amortized cost	$	287
January 1, 2026 - fair value accounting election	263
Additions	8
Changes in fair value included in Mortgage banking revenues (a)	(16)
Balance at March 31, 2026 — at fair value	$	542

__________________________________________________________________________________

*(a)*Includes a $17 million reduction in fair value attributable to the realization of expected net servicing cash flows over time.

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12. Fair value measurements, continued

Significant unobservable inputs used in the fair value measurement of residential mortgage loan servicing right assets vary by loan type and included prepayment assumptions and an OAS over market implied forward SOFR to determine an appropriate discount rate. An increase (decrease) in the prepayment speed and OAS each would generally result in a lower (higher) fair value measurement of residential mortgage loan servicing rights. The key economic assumptions used to determine the fair value of residential capitalized servicing rights at March 31, 2026 and the sensitivity of such value to changes in those assumptions are summarized in the table that follows. Those calculated sensitivities are hypothetical and actual changes in the fair value of capitalized servicing rights may differ significantly from the amounts presented herein. The effect of a variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another which may magnify or counteract the sensitivities. The changes in assumptions are presumed to be instantaneous.


(Dollars in millions)
Weighted-average prepayment speeds (range 6% - 17%)	7.44		%
Impact on fair value of 10% adverse change	$	(16)
Impact on fair value of 20% adverse change	(30)
Weighted-average OAS (range 5% - 20%)	7.22		%
Impact on fair value of 10% adverse change	$	(15)
Impact on fair value of 20% adverse change	(29)

Nonrecurring fair value measurements

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

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of certain loans based on fair value measurements for partial charge-offs of the uncollectable portions of those loans. The following table summarizes loans subject to such nonrecurring fair value measurements at March 31, 2026 and 2025.


	March 31,
(Dollars in millions)	2026		2025
Level 1	$	—	$	—
Level 2	74		128
Level 3	240		396
	$	314	$	524
Changes in fair value recognized for the quarter ended	$	(38)	$	(35)

Capitalized servicing rights

Prior to January 1, 2026, the Company utilized the amortization method to subsequently measure its residential mortgage loan servicing right assets, subject to impairment charges on a non-recurring basis when the carrying value of certain strata exceeded their fair value. Capitalized servicing rights related to residential mortgage loans required no valuation allowance at each of December 31, 2025 and March 31, 2025. The Company has not made a fair value accounting election for its commercial mortgage loan servicing right assets. Such assets required no valuation allowance at each of March 31, 2026, December 31, 2025 and March 31, 2025.

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12. Fair value measurements, continued

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
March 31, 2026
Financial assets:
Cash and due from banks	$	1,903	$	1,903	$	1,732	$	171	$	—
Interest-bearing deposits at banks	14,445		14,445		—		14,445		—
Investment securities held to maturity	12,119		11,355		—		11,314		41
Loans, net	137,778		137,229		—		4,786		132,443
Financial liabilities:
Time deposits (a)	13,082		13,051		—		13,051		—
Short-term borrowings	7,851		7,851		—		7,851		—
Long-term borrowings	11,175		11,327		—		11,327		—

December 31, 2025
Financial assets:
Cash and due from banks	1,701		1,701		1,588		113		—
Interest-bearing deposits at banks	17,068		17,068		—		17,068		—
Investment securities held to maturity	12,430		11,715		—		11,671		44
Loans, net	136,586		136,269		—		7,427		128,842
Financial liabilities:
Time deposits (a)	13,227		13,208		—		13,208		—
Short-term borrowings	2,149		2,149		—		2,149		—
Long-term borrowings	10,911		11,179		—		11,179		—

__________________________________________________________________________________

*(a)*Includes $2.7 billion and $2.8 billion of time deposits with balances greater than $250,000 at March 31, 2026 and December 31, 2025, respectively.

With the exception of investment 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. 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. 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.

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13. Commitments and contingencies

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


(Dollars in millions)	March 31, 2026		December 31, 2025
Commitments to extend credit:
Commercial and industrial	$	35,261	$	35,654
Commercial real estate loans to be sold	529		773
Other commercial real estate	2,948		2,331
Residential real estate loans to be sold	222		224
Other residential real estate	856		679
Home equity lines of credit	7,910		7,974
Credit cards	6,739		6,601
Other	554		444
Standby letters of credit	2,382		2,318
Commercial letters of credit	53		72
Financial guarantees and indemnification contracts	4,848		4,751
Commitments to sell real estate loans	1,447		1,898

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 $12.9 billion at each of March 31, 2026 and December 31, 2025 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.

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 contractual credit risk for recourse associated with loans sold under this program totaled approximately $4.7 billion and $4.6 billion at March 31, 2026 and December 31, 2025, 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 3, 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 Consolidated Balance Sheet at fair 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.

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13. Commitments and contingencies, continued

The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. At March 31, 2026, the Company believes that its obligation to loan purchasers was not material to the Company’s consolidated financial position.

At March 31, 2026, the Company had no remaining liability related to the FDIC special assessment, compared with $22 million at December 31, 2025. Such amounts are classified as Accrued interest and other liabilities in the Consolidated Balance Sheet. The FDIC has indicated that the amount of the special assessment may be adjusted in the future should its loss estimate change.

Legal proceedings and other matters

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. It is reasonably possible that pending or threatened litigation could result in exposure in excess of that liability. Although not considered probable, the reasonably possible losses for such matters beyond the existing recorded liability is not likely to exceed $25 million in the aggregate at March 31, 2026. That estimate is subject to significant judgment based on currently available information and various assumptions about known and unknown uncertainties. That estimate does not represent the Company’s maximum loss exposure and actual losses may vary significantly from that amount.

For the following matter the Company does not believe an estimate of loss can be made at the date of this filing and, therefore, has not included any amount related thereto in its consolidated financial statements or in the estimate of aggregate reasonably possible losses provided in the preceding paragraph.

Wilmington Trust, N.A.

On September 10, 2025, Tricolor Holdings, LLC, a subprime automobile lender and used vehicle retailer which packaged loans into asset-backed securitizations, filed for Chapter 7 bankruptcy seeking to liquidate its business. Certain financial institutions reported credit impairments in the third quarter of 2025 related to alleged fraudulent activity with respect to Tricolor Holdings, LLC asset-backed financing arrangements. On December 17, 2025 the DOJ unsealed criminal charges against certain executives of Tricolor Holdings, LLC, alleging, among other things, that the executives conspired to defraud and defrauded certain lenders and asset-backed securities investors of Tricolor Holdings, LLC and its affiliates. The Chapter 7 Bankruptcy Trustee for Tricolor Holdings, LLC has alleged that certain individuals at Tricolor Holdings, LLC caused Tricolor Holdings, LLC's records to contain approximately $683 million of fictitious loans and has initiated a legal action against those same executives who were criminally charged by the DOJ. Neither Wilmington Trust, N.A. nor M&T Bank have any loans or loan commitments outstanding to Tricolor Holdings, LLC.

Wilmington Trust, N.A. has served in certain corporate custodian and trust capacities for multiple Tricolor Holdings, LLC warehouse facilities and asset-backed securitization transactions since 2018. Such capacities varied from transaction to transaction and were generally service provider roles performed under the relevant transaction documents.

On January 12, 2026, certain note holders filed a civil complaint against Wilmington Trust, N.A. for an unspecified amount of damages arising from alleged breaches of contract and fiduciary duty related to certain Tricolor Holdings, LLC asset-backed securitization transactions. Wilmington Trust, N.A. intends to vigorously defend itself against this legal action. The facts and circumstances of the Tricolor Holdings, LLC bankruptcy and its alleged fraudulent activities as well as the extent of damages, if any, incurred by parties participating in the warehouse facilities and asset-backed securitization transactions are still being learned. The Company believes it may incur losses as a result of this litigation or other potential claims that may arise as a result of these events, but at the current time it is not

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13. Commitments and contingencies, continued

possible to estimate any potential legal or other liability of Wilmington Trust, N.A. as a result of its capacities in the warehouse facilities and asset-backed securitization transactions. Such losses, if any, are currently not expected to be material to the Company’s financial position at March 31, 2026.

14. Segment information

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

The financial information of the Company's segments was compiled utilizing the accounting policies described in note 21 of Notes to Financial Statements in M&T's 2025 Annual Report. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segment results are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

Information about the Company's segments is presented in the accompanying table.


	Three Months Ended March 31,
	Commercial Bank				Retail Bank				Institutional Services and Wealth Management				All Other				Total
(Dollars in millions)	2026		2025		2026		2025		2026		2025		2026		2025		2026		2025
Net interest income (a)	$	535	$	529	$	950	$	972	$	156	$	171	$	111	$	23	$	1,752	$	1,695
Noninterest income	193		173		217		208		221		209		58		21		689		611
Total revenue	728		702		1,167		1,180		377		380		169		44		2,441		2,306
Provision for credit losses	29		36		82		79		—		3		29		12		140		130
Salaries and employee benefits	145		151		197		196		109		106		463		434		914		887
Depreciation and amortization	10		10		36		62		2		2		49		56		97		130
Other direct expenses	78		67		103		99		35		26		211		206		427		398
Indirect expense (b)	127		123		289		279		80		81		(496)		(483)		—		—
Income (loss) before taxes	339		315		460		465		151		162		(87)		(181)		863		761
Income tax expense (benefit)	89		84		116		118		39		41		(45)		(66)		199		177
Net income (loss)	$	250	$	231	$	344	$	347	$	112	$	121	$	(42)	$	(115)	$	664	$	584
Average total assets	$	78,804	$	79,362	$	58,821	$	54,381	$	4,744	$	4,102	$	71,459	$	70,476	$	213,828	$	208,321

__________________________________________________________________________________

*(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 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 to $11 million and $12 million for the three-month periods ended March 31, 2026 and 2025, respectively, and is eliminated in "All Other" total revenues.

*(b)*Indirect expense represents centrally-allocated costs associated with certain technology, operations, risk management, finance and human resources expenses provided by the "All Other" category to the Commercial Bank, Retail Bank and Institutional Services and Wealth Management segments.

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15. Relationship with BLG and Bayview Financial

M&T holds a 20% minority interest in BLG, a privately-held commercial mortgage company. That investment had no remaining carrying value at March 31, 2026 as a result of cumulative losses recognized and cash distributions received in prior years. Cash distributions now received from BLG are recognized as income by M&T and included in Other revenues from operations in the Consolidated Statement of Income. That income totaled $33 million for the three months ended March 31, 2026. No distributions were received for the three months ended March 31, 2025.

Bayview Financial, a privately-held specialty finance company, is BLG's majority investor. In addition to their common investment in BLG, the Company and Bayview Financial conduct other business activities with each other. The Company has loan servicing rights for mortgage loans securitized by Bayview Financial having outstanding principal balances of $847 million at March 31, 2026 and $875 million at December 31, 2025. The Company also sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $124.0 billion and $156.9 billion at March 31, 2026 and December 31, 2025, respectively. Revenues earned for servicing and sub-servicing such loans were $63 million and $41 million for the three months ended March 31, 2026 and 2025, respectively.

The Company also held $30 million and $32 million of mortgage-backed securities in its held-to-maturity portfolio at March 31, 2026 and December 31, 2025, respectively, that were securitized by Bayview Financial. The Company had various lending commitments to Bayview Financial totaling $956 million at March 31, 2026, with $802 million and $635 million of outstanding balances at March 31, 2026 and December 31, 2025, respectively. Bayview Financial also maintained $3.6 billion and $3.5 billion of deposit balances with the Company at March 31, 2026 and December 31, 2025, respectively, inclusive of deposits related to loan servicing relationships.

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