Item 1. Financial Statements (Unaudited).

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Item 1. Financial Statements (Unaudited).

M&T Bank Corporation and Subsidiaries

Consolidated Balance Sheet (Unaudited)


(Dollars in millions, except per share)	June 30, 2026		December 31, 2025
Assets
Cash and due from banks	$	1,939	$	1,701
Interest-bearing deposits at banks	15,499		17,068


Investment securities:
Available for sale (cost: $25,495 at June 30, 2026; $22,994 at December 31, 2025)	25,370		23,202
Held to maturity (fair value: $11,119 at June 30, 2026; $11,715 at December 31, 2025)	11,908		12,430
Equity and other securities (cost: $1,093 at June 30, 2026; $1,016 at December 31, 2025)	1,096		1,017
Total investment securities	38,374		36,649


Loans (a)	143,193		138,702
Allowance for loan losses	(2,176)		(2,116)
Net loans	141,017		136,586
Premises and equipment	1,726		1,629
Goodwill	8,465		8,465
Core deposit and other intangible assets	48		64
Accrued interest and other assets	12,193		11,348
Total assets	$	219,261	$	213,510
Liabilities
Noninterest-bearing deposits	$	48,295	$	46,509
Savings and interest-checking deposits	105,602		107,173
Time deposits	14,988		13,227
Total deposits	168,885		166,909
Short-term borrowings	4,614		2,149
Long-term borrowings (a)	13,568		10,911
Accrued interest and other liabilities	4,248		4,364
Total liabilities	191,315		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 June 30, 2026 and December 31, 2025	90		90

Additional paid-in capital	9,970		10,011
Retained earnings	22,038		20,882
Accumulated other comprehensive income (loss), net	(92)		277
Treasury stock — common, at cost — 34,507,260 shares at June 30, 2026; 27,604,513 shares at December 31, 2025	(6,494)		(4,917)
Total shareholders’ equity	27,946		29,177
Total liabilities and shareholders’ equity	$	219,261	$	213,510

__________________________________________________________________________________

*(a)*Loans of $3.1 billion and $2.1 billion at June 30, 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 $2.8 billion at June 30, 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 June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2026		2025		2026		2025
Interest income
Loans	$	2,070	$	2,054	$	4,064	$	4,060
Investment securities	411		334		804		670


Deposits at banks	139		219		288		437
Other	—		2		—		2
Total interest income	2,620		2,609		5,156		5,169
Interest expense
Savings and interest-checking deposits	477		579		960		1,131
Time deposits	104		123		201		247
Short-term borrowings	77		37		131		69
Long-term borrowings	170		157		320		314
Total interest expense	828		896		1,612		1,761
Net interest income	1,792		1,713		3,544		3,408
Provision for credit losses	120		125		260		255
Net interest income after provision for credit losses	1,672		1,588		3,284		3,153
Other income
Mortgage banking revenues	127		130		254		248
Service charges on deposit accounts	144		137		283		270
Trust income	197		182		380		359
Brokerage services income	35		31		70		63
Trading account and other non-hedging derivative gains	22		12		36		21
Gain (loss) on bank investment securities	2		—		6		—
Other revenues from operations	213		191		400		333
Total other income	740		683		1,429		1,294
Other expense
Salaries and employee benefits	826		813		1,740		1,700
Equipment and net occupancy	129		130		262		262
Outside data processing and software	154		138		298		274
Professional and other services	89		86		182		170
FDIC assessments	18		22		41		45
Advertising and marketing	27		25		48		47
Amortization of core deposit and other intangible assets	7		9		16		22
Other costs of operations	99		113		200		231
Total other expense	1,349		1,336		2,787		2,751
Income before taxes	1,063		935		1,926		1,696
Income taxes	245		219		444		396
Net income	$	818	$	716	$	1,482	$	1,300
Net income available to common shareholders
Basic	$	781	$	679	$	1,401	$	1,226
Diluted	781		679		1,401		1,226
Net income per common share
Basic	5.35		4.26		9.49		7.58
Diluted	5.32		4.24		9.44		7.55
Average common shares outstanding
Basic	145,891		159,221		147,549		161,701
Diluted	146,758		160,005		148,424		162,511

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Comprehensive Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2026		2025			2026		2025
Net income	$	818	$	716		$	1,482	$	1,300
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	(99)		67			(248)		214
Cash flow hedges adjustments	(58)		56			(118)		164
Defined benefit plans liability adjustments	(1)		(1)			(2)		(3)
Other	—		3			(1)		4
Total other comprehensive income (loss)	(158)		125			(369)		379
Total comprehensive income	$	660	$	841		$	1,113	$	1,679

See accompanying notes to financial statements.

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M&T Bank Corporation and Subsidiaries

Consolidated Statement of Cash Flows (Unaudited)


	Six Months Ended June 30,
(Dollars in millions)	2026		2025
Cash flows from operating activities
Net income	$	1,482	$	1,300
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	260		255
Depreciation and amortization of premises and equipment	156		164
Amortization of capitalized servicing rights	18		68
Amortization of core deposit and other intangible assets	16		22
Provision for deferred income taxes	30		(22)
Asset write-downs	3		6
Net gain on sales of assets	(13)		(35)
Net change in accrued interest receivable, payable	39		(13)
Net change in other accrued income and expense	(166)		53
Net change in loans originated for sale	416		(70)
Net change in trading account and other non-hedging derivative assets and liabilities	39		(249)
Net cash from operating activities	2,280		1,479
Cash flows from investing activities
Proceeds from sales:
Investment securities available for sale	2,492		—
Equity and other securities	740		304
Loans	22		780
Proceeds from maturities:
Investment securities available for sale	1,953		2,070
Investment securities held to maturity	611		1,161
Purchases:
Investment securities available for sale	(6,943)		(4,472)

Investment securities held to maturity	(80)		—
Equity and other securities	(813)		(301)
Loans	(259)		(365)
Net change in loans	(4,942)		(1,194)

Capital expenditures, net	(117)		(51)
Net change in loan servicing advances	(444)		(712)
Other, net	(370)		219
Net cash from investing activities	(8,150)		(2,561)
Cash flows from financing activities
Net change in deposits	1,975		3,357
Net change in short-term borrowings	2,465		1,011
Proceeds from long-term borrowings	3,203		2,786
Payments on long-term borrowings	(463)		(3,165)

Redemption of Series G preferred stock	(400)		—
Purchases of treasury stock	(1,698)		(1,725)
Dividends paid — common	(445)		(438)
Dividends paid — preferred	(86)		(71)
Other, net	(12)		(30)
Net cash from financing activities	4,539		1,725
Net change in cash, cash equivalents and restricted cash	(1,331)		643
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)	$	17,438	$	21,425
Supplemental disclosure of cash flow information
Interest received during the period	$	5,277	$	5,239
Interest paid during the period	1,585		1,744
Income taxes paid during the period	256		150
Supplemental schedule of noncash investing and financing activities
Real estate and other foreclosed assets acquired in settlement of loans	8		11
Additions to right-of-use assets under operating leases	135		57

__________________________________________________________________________________

*(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 June 30, 2026
Balance — April 1, 2026	$	2,434	$	90	$	9,961	$	21,476	$	66	$	(6,055)	$	27,972

Total comprehensive income	—		—		—		818		(158)		—		660


Preferred stock cash dividends	—		—		—		(35)		—		—		(35)
Purchases of treasury stock	—		—		—		—		—		(465)		(465)
Stock-based compensation transactions, net	—		—		9		(1)		—		26		34
Common stock cash dividends — $1.50 per share	—		—		—		(220)		—		—		(220)
Balance — June 30, 2026	$	2,434	$	90	$	9,970	$	22,038	$	(92)	$	(6,494)	$	27,946

Six Months Ended June 30, 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	—		—		—		1,482		(369)		—		1,113

Redemption of Series G preferred stock	(400)		—		—		—		—		—		(400)
Preferred stock cash dividends	—		—		—		(78)		—		—		(78)
Purchases of treasury stock	—		—		—		—		—		(1,715)		(1,715)
Stock-based compensation transactions, net	—		—		(41)		(2)		—		138		95
Common stock cash dividends — $3.00 per share	—		—		—		(443)		—		—		(443)
Balance — June 30, 2026	$	2,434	$	90	$	9,970	$	22,038	$	(92)	$	(6,494)	$	27,946












Three Months Ended June 30, 2025
Balance — April 1, 2025	$	2,394	$	90	$	9,969	$	19,405	$	90	$	(2,957)	$	28,991
Total comprehensive income	—		—		—		716		125		—		841

Preferred stock cash dividends	—		—		—		(35)		—		—		(35)
Purchases of treasury stock	—		—		—		—		—		(1,080)		(1,080)
Stock-based compensation transactions, net	—		—		13		(2)		—		11		22
Common stock cash dividends — $1.35 per share	—		—		—		(214)		—		—		(214)
Balance — June 30, 2025	$	2,394	$	90	$	9,982	$	19,870	$	215	$	(4,026)	$	28,525

Six Months Ended June 30, 2025
Balance — January 1, 2025	$	2,394	$	90	$	9,999	$	19,079	$	(164)	$	(2,371)	$	29,027
Total comprehensive income	—		—		—		1,300		379		—		1,679


Preferred stock cash dividends	—		—		—		(71)		—		—		(71)
Purchases of treasury stock	—		—		—		—		—		(1,742)		(1,742)
Stock-based compensation transactions, net	—		—		(17)		(2)		—		87		68
Common stock cash dividends — $2.70 per share	—		—		—		(436)		—		—		(436)
Balance — June 30, 2025	$	2,394	$	90	$	9,982	$	19,870	$	215	$	(4,026)	$	28,525

__________________________________________________________________________________

*(a)*As described in notes 1 and 13, 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 and with instructions for Form 10-Q and Article 10 Regulation S-X. 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. The consolidated interim financial statements should be read in conjunction with the consolidated financial statements included in the Company's 2025 Annual Report.

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 and other derivative contracts, for which changes in fair value are reflected in Mortgage banking revenues in the Consolidated Statement of Income for the three and six months ended June 30, 2026.

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:


	Six Months Ended June 30, 2025
(Dollars in millions)	Previously Reported		Adjusted
Net change in interest-bearing deposits at banks	$	(424)	$	—
Net cash from investing activities	(2,985)		(2,561)
Net change in cash, cash equivalents and restricted cash	219		643
Cash, cash equivalents and restricted cash at beginning of period	1,909		20,782
Cash, cash equivalents and restricted cash at end of period	2,128		21,425

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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 six-month period ended June 30, 2026 as well as standards that were not yet effective at June 30, 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 six-month period ended June 30, 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-purchased credit deteriorated 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 and six month-periods ended June 30, 2026.
Standards not yet adopted as of June 30, 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.

2. Divestiture

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

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3. 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
June 30, 2026
Investment securities available for sale:
U.S. Treasury	$	3,227	$	4	$	4	$	3,227
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,744		22		11		4,755
Residential (b)	17,523		61		197		17,387
Other	1		—		—		1
	25,495		87		212		25,370
Investment securities held to maturity:
U.S. Treasury	398		—		3		395
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	1,996		—		92		1,904
Residential	7,463		1		663		6,801
Privately issued	28		11		—		39
State and political subdivisions	2,022		—		43		1,979
Other	1		—		—		1
	11,908		12		801		11,119
Total debt securities	$	37,403	$	99	$	1,013	$	36,489
Equity and other securities:
Readily marketable equity — at fair value	$	242	$	5	$	2	$	245
Other — at cost	851		—		—		851
Total equity and other securities	$	1,093	$	5	$	2	$	1,096

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 $173 million and $187 million at June 30, 2026 and December 31, 2025, respectively, which is included in Accrued interest and other assets in the Company's Consolidated Balance Sheet.

*(b)*In July 2026, the Company transferred $8.3 billion of residential mortgage-backed securities from the available-for-sale portfolio to the held-to-maturity portfolio with gross unrealized gains of $32 million and gross unrealized losses of $24 million at the time of transfer.

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3. Investment securities, continued

A summary of debt investment securities that as of June 30, 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
June 30, 2026
Investment securities available for sale:
U.S. Treasury	$	1,388	$	4	$	—	$	—	$	1,388	$	4
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	1,961		11		1		—		1,962		11
Residential	9,794		135		1,091		62		10,885		197
Other	—		—		1		—		1		—
	13,143		150		1,093		62		14,236		212
Investment securities held to maturity:
U.S. Treasury	—		—		395		3		395		3
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	272		6		1,632		86		1,904		92
Residential	1,231		19		5,110		644		6,341		663
Privately issued	—		—		1		—		1		—
State and political subdivisions	508		5		1,248		38		1,756		43
	2,011		30		8,386		771		10,397		801
Total	$	15,154	$	180	$	9,479	$	833	$	24,633	$	1,013

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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3. Investment securities, continued

The Company owned 3,361 individual debt securities with aggregate gross unrealized losses of $1.0 billion at June 30, 2026. Based on a review of each of the securities in the investment securities portfolio at June 30, 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 June 30, 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 June 30, 2026 or December 31, 2025. At June 30, 2026, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $851 million of cost method equity securities.

At June 30, 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	$	1,356	$	1,359
Due after one year through five years	1,872		1,869
Due after five years through ten years	—		—
Due after ten years	—		—
	3,228		3,228
Mortgage-backed securities	22,267		22,142
	$	25,495	$	25,370
Debt securities held to maturity:
Due in one year or less	$	407	$	404
Due after one year through five years	392		391
Due after five years through ten years	1,202		1,186
Due after ten years	420		394
	2,421		2,375
Mortgage-backed securities	9,487		8,744
	$	11,908	$	11,119

A summary of gross realized gains and gross realized losses from the sale of available-for-sale investment securities for the three-month and six-month periods ended June 30, 2026 and 2025 follows.


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2026		2025		2026		2025
Gross realized gains	$	—	$	—	$	6	$	—
Gross realized losses	—		—		(2)		—
Net realized gains	$	—	$	—	$	4	$	—

At June 30, 2026 and December 31, 2025, investment securities with carrying values of $5.2 billion (including $77 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.

- 14 -

4. Loans and allowance for loan losses

A summary of current, past due and nonaccrual loans as of June 30, 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)
June 30, 2026
Commercial and industrial	$	65,198	$	371	$	4	$	570	$	66,143
Real estate:
Commercial (c)	20,848		168		2		216		21,234
Residential builder and developer	101		9		—		—		110
Other commercial construction	3,082		30		—		36		3,148
Residential (d) (e)	23,891		644		587		262		25,384
Consumer:
Home equity lines and loans (e)	4,781		33		—		77		4,891
Recreational finance	14,712		111		—		33		14,856
Automobile	4,899		60		—		10		4,969
Other	2,420		24		10		4		2,458
Total	$	139,932	$	1,450	$	603	$	1,208	$	143,193

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 $260 million and $276 million at June 30, 2026 and December 31, 2025, respectively.

*(b)*Balances exclude accrued interest receivable of $625 million and $627 million at June 30, 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 $259 million at June 30, 2026 and $484 million at December 31, 2025.

*(d)*Residential real estate loans held for sale were $256 million at June 30, 2026 and $441 million at December 31, 2025.

*(e)*There were $186 million and $182 million at June 30, 2026 and December 31, 2025, respectively, of loans secured by residential real estate that were in the process of foreclosure. At June 30, 2026, approximately 59% of those residential real estate loans in the process of foreclosure were government guaranteed.

As further described in notes 5 and 12, loans totaling $3.1 billion and $2.1 billion at June 30, 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. The Company has also pledged loans to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York at June 30, 2026 and December 31, 2025 as summarized in the following table.


(Dollars in billions)	June 30, 2026		December 31, 2025
Commercial and industrial	$	23.6	$	20.7
Commercial real estate	13.3		13.4
Residential real estate	19.6		19.5
Consumer	17.4		18.2

- 15 -

4. Loans and allowance for loan losses, continued

Credit quality indicators

The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. The following table summarizes the loan grades applied at June 30, 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 six-month period ended June 30, 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	$	6,787	$	8,417	$	5,539	$	3,315	$	3,285	$	6,176	$	29,143	$	93	$	62,755
Criticized accrual	49		222		370		405		266		349		1,125		32		2,818
Criticized nonaccrual	3		33		69		64		75		159		147		20		570
Total commercial and industrial	$	6,839	$	8,672	$	5,978	$	3,784	$	3,626	$	6,684	$	30,415	$	145	$	66,143

Gross charge-offs six months ended June 30, 2026	$	—	$	10	$	18	$	9	$	8	$	8	$	32	$	—	$	85
Real estate:
Commercial:
Pass	$	2,888	$	3,290	$	413	$	1,655	$	1,782	$	9,032	$	388	$	—	$	19,448
Criticized accrual	—		12		9		155		131		1,263		—		—		1,570
Criticized nonaccrual	—		—		—		23		23		170		—		—		216
Total commercial real estate	$	2,888	$	3,302	$	422	$	1,833	$	1,936	$	10,465	$	388	$	—	$	21,234

Gross charge-offs six months ended June 30, 2026	$	—	$	—	$	—	$	9	$	2	$	21	$	—	$	—	$	32
Residential builder and developer:
Pass	$	47	$	18	$	2	$	—	$	—	$	4	$	28	$	—	$	99
Criticized accrual	—		—		—		—		11		—		—		—		11
Criticized nonaccrual	—		—		—		—		—		—		—		—		—
Total residential builder and developer	$	47	$	18	$	2	$	—	$	11	$	4	$	28	$	—	$	110

Gross charge-offs six months ended June 30, 2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Other commercial construction:
Pass	$	215	$	548	$	240	$	922	$	316	$	166	$	74	$	—	$	2,481
Criticized accrual	—		—		10		112		349		159		1		—		631
Criticized nonaccrual	—		—		—		—		7		29		—		—		36
Total other commercial construction	$	215	$	548	$	250	$	1,034	$	672	$	354	$	75	$	—	$	3,148

Gross charge-offs six months ended June 30, 2026	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1

- 16 -

4. Loans and allowance for loan losses, continued

The Company considers repayment performance a significant indicator of credit quality for its residential real estate loan and consumer loan portfolios. A summary of loans in accrual and nonaccrual status at June 30, 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 six-month period ended June 30, 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	$	2,081	$	3,074	$	1,636	$	1,023	$	3,947	$	11,995	$	135	$	—	$	23,891
30-89 days past due	6		13		8		89		108		420		—		—		644
Accruing loans past due 90 days or more	—		6		8		25		139		409		—		—		587
Nonaccrual	—		2		4		8		47		201		—		—		262
Total residential real estate	$	2,087	$	3,095	$	1,656	$	1,145	$	4,241	$	13,025	$	135	$	—	$	25,384


Gross charge-offs six months ended June 30, 2026	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—	$	3
Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	—	$	—	$	68	$	3,444	$	1,269	$	4,781
30-89 days past due	—		—		—		—		—		2		—		31		33
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		2		1		74		77
Total home equity lines and loans	$	—	$	—	$	—	$	—	$	—	$	72	$	3,445	$	1,374	$	4,891

Gross charge-offs six months ended June 30, 2026	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	3	$	3
Recreational finance:
Current	$	2,349	$	3,580	$	2,702	$	1,527	$	1,516	$	3,038	$	—	$	—	$	14,712
30-89 days past due	4		11		20		18		18		40		—		—		111
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		4		6		9		4		10		—		—		33
Total recreational finance	$	2,353	$	3,595	$	2,728	$	1,554	$	1,538	$	3,088	$	—	$	—	$	14,856

Gross charge-offs six months ended June 30, 2026	$	1	$	10	$	18	$	16	$	13	$	29	$	—	$	—	$	87
Automobile:
Current	$	864	$	1,643	$	1,360	$	431	$	344	$	257	$	—	$	—	$	4,899
30-89 days past due	2		10		19		12		9		8		—		—		60
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		3		3		1		1		2		—		—		10
Total automobile	$	866	$	1,656	$	1,382	$	444	$	354	$	267	$	—	$	—	$	4,969

Gross charge-offs six months ended June 30, 2026	$	—	$	6	$	9	$	5	$	3	$	2	$	—	$	—	$	25
Other:
Current	$	182	$	237	$	117	$	65	$	41	$	39	$	1,738	$	1	$	2,420
30-89 days past due	2		2		2		1		1		—		15		1		24
Accruing loans past due 90 days or more	—		—		—		—		—		—		10		—		10
Nonaccrual	2		1		1		—		—		—		—		—		4
Total other	$	186	$	240	$	120	$	66	$	42	$	39	$	1,763	$	2	$	2,458

Gross charge-offs six months ended June 30, 2026	$	4	$	9	$	5	$	2	$	—	$	—	$	35	$	—	$	55
Total loans at June 30, 2026	$	15,481	$	21,126	$	12,538	$	9,860	$	12,420	$	33,998	$	36,249	$	1,521	$	143,193

Total gross charge-offs for the six months ended June 30, 2026	$	5	$	35	$	50	$	41	$	26	$	64	$	67	$	3	$	291

- 17 -

4. 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 -

4. 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 -

4. Loans and allowance for loan losses, continued

Allowance for loan losses

For purposes of determining the level of the allowance for loan losses, the Company evaluates its portfolios by loan type. Changes in the allowance for loan losses and the reserve for unfunded credit commitments for the three-month and six-month periods ended June 30, 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 June 30, 2026
Beginning balance	$	817		$	421		$	99		$	799		$	2,136	$	95
Provision for credit losses	35			(7)			1			91			120		—

Net charge-offs:
Charge-offs	(39)			(15)			(2)			(82)			(138)		—
Recoveries	19			9			2			28			58		—
Net charge-offs	(20)			(6)			—			(54)			(80)		—
Ending balance	$	832		$	408		$	100		$	836		$	2,176	$	95

Three Months Ended June 30, 2025
Beginning balance	$	762		$	610		$	105		$	723		$	2,200	$	60
Provision for credit losses	69			(43)			5			74			105		20
Net charge-offs:
Charge-offs	(57)			(25)			(1)			(73)			(156)		—
Recoveries	19			2			1			26			48		—
Net charge-offs	(38)			(23)			—			(47)			(108)		—
Ending balance	$	793		$	544		$	110		$	750		$	2,197	$	80

Six Months Ended June 30, 2026
Beginning balance	$	771		$	472		$	100		$	773		$	2,116	$	80
Provision for credit losses	106			(41)			(1)			181			245		15

Net charge-offs:
Charge-offs	(85)			(33)			(3)			(170)			(291)		—
Recoveries	40			10			4			52			106		—
Net charge-offs	(45)			(23)			1			(118)			(185)		—
Ending balance	$	832		$	408		$	100		$	836		$	2,176	$	95

Six Months Ended June 30, 2025
Beginning balance	$	769		$	599		$	108		$	708		$	2,184	$	60

Provision for credit losses	91			(13)			2			155			235		20
Net charge-offs:
Charge-offs	(107)			(47)			(3)			(159)			(316)		—
Recoveries	40			5			3			46			94		—
Net charge-offs	(67)			(42)			—			(113)			(222)		—
Ending balance	$	793		$	544		$	110		$	750		$	2,197	$	80

__________________________________________________________________________________

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

- 20 -

4. Loans and allowance for loan losses, continued

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

- 21 -

4. Loans and allowance for loan losses, continued

Information with respect to loans that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the three-month and six-month periods ended June 30, 2026 and 2025 follows.


	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost				Interest Income Recognized
(Dollars in millions)	June 30, 2026						April 1, 2026		January 1, 2026		Three Months Ended June 30, 2026		Six Months Ended June 30, 2026
Commercial and industrial	$	520	$	50	$	570	$	535	$	527	$	8	$	15
Real estate:
Commercial	162		54		216		294		320		8		9
Residential builder and developer	—		—		—		—		—		—		—
Other commercial construction	29		7		36		10		13		—		—
Residential	111		151		262		272		264		4		6

Consumer:
Home equity lines and loans	37		40		77		84		82		1		3
Recreational finance	19		14		33		32		30		1		1
Automobile	8		2		10		9		11		—		—
Other	4		—		4		4		5		—		—
Total	$	890	$	318	$	1,208	$	1,240	$	1,252	$	22	$	34
	June 30, 2025						April 1, 2025		January 1, 2025		Three Months Ended June 30, 2025		Six Months Ended June 30, 2025
Commercial and industrial	$	663	$	124	$	787	$	662	$	696	$	6	$	12
Real estate:
Commercial	289		87		376		394		468		10		17
Residential builder and developer	1		—		1		1		2		—		—
Other commercial construction	23		—		23		28		66		—		—
Residential	115		150		265		284		279		4		7

Consumer:
Home equity lines and loans	34		41		75		78		81		2		4
Recreational finance	15		10		25		26		31		—		—
Automobile	7		2		9		11		12		—		—
Other	5		7		12		56		55		—		—
Total	$	1,152	$	421	$	1,573	$	1,540	$	1,690	$	22	$	40

- 22 -

4. Loans and allowance for loan losses, continued

Loan modifications

Loan modifications typically consist of extensions of maturity dates but may also include other modified terms such as payment deferrals and interest rate reductions. The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month and six-month periods ended June 30, 2026 and 2025.


	Amortized Cost (a)
(Dollars in millions)	Term Extension		Other		Combination of Modification Types		Total (b) (c)		Percent of Total Loan Class
Three Months Ended June 30, 2026
Commercial and industrial	$	73	$	6	$	37	$	116	.18	%
Real estate:
Commercial	120		1		23		144		.68
Residential builder and developer	—		—		—		—		—
Other commercial construction	183		—		4		187		5.94
Residential	39		2		17		58		.23

Consumer:
Home equity lines and loans	—		—		1		1		.02
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	8		—		—		8		.32
Total	$	423	$	9	$	82	$	514	.36	%
















Six Months Ended June 30, 2026
Commercial and industrial	$	136	$	9	$	68	$	213	.32	%
Real estate:
Commercial	313		9		96		418		1.97
Residential builder and developer	9		—		—		9		7.85
Other commercial construction	245		—		4		249		7.92
Residential	53		5		21		79		.31
Consumer:
Home equity lines and loans	—		—		1		1		.02
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	8		—		—		8		.32
Total	$	764	$	23	$	190	$	977	.68	%

__________________________________________________________________________________

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

*(b)*Includes approximately $48 million and $62 million of loans guaranteed by government-related entities (primarily first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2026, respectively.

*(c)*Excludes unfunded commitments to extend credit totaling $29 million and $45 million for the three-month and six-month periods ended June 30, 2026, respectively.

- 23 -

4. Loans and allowance for loan losses, continued


	Amortized Cost (a)
(Dollars in millions)	Term Extension		Other		Combination of Modification Types		Total (b) (c)		Percent of Total Loan Class
Three Months Ended June 30, 2025
Commercial and industrial	$	68	$	16	$	3	$	87	.14	%
Real estate:
Commercial	266		53		—		319		1.58
Residential builder and developer	—		—		—		—		—
Other commercial construction	12		—		—		12		.27
Residential	37		1		6		44		.18

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

Six Months Ended June 30, 2025
Commercial and industrial	$	130	$	17	$	76	$	223	.36	%
Real estate:
Commercial	399		53		—		452		2.24
Residential builder and developer	—		—		—		—		—
Other commercial construction	214		—		—		214		5.03
Residential	71		4		12		87		.36

Consumer:
Home equity lines and loans	—		—		—		—		—
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	10		—		—		10		.44
Total	$	824	$	74	$	88	$	986	.73	%

__________________________________________________________________________________

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

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

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

The financial effects of the modifications on the weighted-average remaining term of modified loans for the three-month and six-month periods ended June 30, 2026 and 2025 are summarized in the following table.


	Three Months Ended June 30,		Six Months Ended June 30,
(In years)	2026	2025	2026	2025
Increase to weighted-average remaining term
Commercial and industrial	1.1	0.6	1.7	0.8
Real estate:
Commercial (a)	1.4	0.8	1.3	0.8
Residential	10.6	9.2	10.8	9.7

__________________________________________________________________________________

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

- 24 -

4. Loans and allowance for loan losses, continued

The following table summarizes the payment status, at June 30, 2026 and 2025, of loans to borrowers experiencing financial difficulty that were modified during the twelve-month periods ended June 30, 2026 and 2025, respectively.


	Amortized Cost (a)
(Dollars in millions)	Current		30-89 Days Past Due		Past Due 90 Days or More		Total
Twelve Months Ended June 30, 2026
Commercial and industrial	$	247	$	8	$	8	$	263
Real estate:
Commercial	458		117		3		578
Residential builder and developer	3		9		—		12
Other commercial construction	272		2		—		274
Residential (b)	113		36		47		196

Consumer:
Home equity lines and loans	2		—		—		2
Recreational finance	—		—		—		—
Automobile	—		—		—		—
Other	11		—		—		11
Total	$	1,106	$	172	$	58	$	1,336


Twelve Months Ended June 30, 2025
Commercial and industrial	$	281	$	7	$	63	$	351
Real estate:
Commercial	598		54		1		653
Residential builder and developer	—		—		—		—
Other commercial construction	279		—		5		284
Residential (b)	77		48		41		166

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

__________________________________________________________________________________

(a) At the respective period end.

(b) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $30 million and $40 million and as past due 90 days or more of $43 million and $35 million at June 30, 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.

- 25 -

5. Borrowings

The following table summarizes the Company's short-term and long-term borrowings at June 30, 2026 and December 31, 2025.


(Dollars in millions)	June 30, 2026		December 31, 2025
Short-term borrowings
Repurchase agreements	$	64	$	49
Advances from FHLB	4,550		2,100
Total short-term borrowings	$	4,614	$	2,149

Long-term borrowings
Senior notes — M&T	$	5,497	$	5,583
Senior notes — M&T Bank	3,142		1,946
Advances from FHLB	3		3
Subordinated notes — M&T	1,245		747
Subordinated notes — M&T Bank	489		489
Junior subordinated debentures — M&T (a)	403		403
Asset-backed notes (a)	2,779		1,730
Other	10		10
Total long-term borrowings	$	13,568	$	10,911

__________________________________________________________________________________

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

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.

At June 30, 2026, M&T Bank had borrowing facilities available with the FHLB of New York whereby M&T Bank could borrow up to approximately $20.0 billion, of which $4.6 billion was outstanding at June 30, 2026. Additionally, M&T Bank had an available line of credit with the FRB of New York totaling approximately $26.1 billion at June 30, 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.

- 26 -

6. Shareholders' equity

M&T is authorized to issue 20,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence. Issued and outstanding preferred stock of M&T as of June 30, 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 June 30,				Six Months Ended June 30,
Series	June 30, 2026	December 31, 2025							June 30, 2026		December 31, 2025		2026		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	$	256.25	$	256.25
Series G (b)	—	40,000	10,000		—	—	—		—		400		—		182.60		182.60		365.20
Series H (c)	10,000,000	10,000,000	25		4/1/2022	4/1/2027	5.625		261		261		0.35		0.35		0.70		0.70
Series I (d)	50,000	50,000	10,000		8/17/2021	9/1/2026	3.500		500		500		87.50		87.50		175.00		175.00
Series J (e)	75,000	75,000	10,000		5/13/2024	6/15/2029	7.500		733		733		187.50		187.50		375.00		375.00
Series K (f)	45,000	45,000	10,000		10/31/2025	12/15/2030	6.350		440		440		158.75		—		317.50		—
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%.

In July 2026 M&T issued 60,000 shares of Perpetual Non-cumulative Preferred Stock Series L, with a liquidation preference of $10,000 per share. Holders of the Series L preferred stock are entitled to receive, if declared, dividends at an annual rate of 6.625%, payable quarterly in arrears until redemption. The Series L preferred stock may be redeemed at M&T's option on any dividend payment date on or after September 15, 2031 or at any time within 90 days following an event whereby the shares no longer qualify as Tier 1 capital.

7. Revenue from contracts with customers

The Company generally charges customer accounts or otherwise bills customers upon completion of its services. Typically, the Company’s contracts with customers have a duration of one year or less and payment for services is received at least annually, but oftentimes more frequently as services are provided. At each of June 30, 2026 and December 31, 2025, the Company had $75 million of amounts receivable related to recognized revenue from the sources in the accompanying tables. Such amounts are included in Accrued interest and other assets in the Company's Consolidated Balance Sheet. In certain situations the Company is paid in advance of providing services and defers the recognition of revenue until its service obligation is satisfied. At June 30, 2026 and December 31, 2025, the Company had deferred revenue of $50 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.

- 27 -

7. Revenue from contracts with customers, continued

The following tables summarize sources of the Company’s noninterest income during the three-month and six-month periods ended June 30, 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 June 30, 2026
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	46	$	98	$	—	$	144
Trust income	1		—		196		197
Brokerage services income	2		—		33		35
Other revenues from operations:
Merchant discount and credit card interchange fees	18		27		—		45
Other	11		8		2		21
	$	78	$	133	$	231	$	442

Three Months Ended June 30, 2025
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	43	$	94	$	—	$	137
Trust income	1		—		181		182
Brokerage services income	2		—		29		31
Other revenues from operations:
Merchant discount and credit card interchange fees	19		27		—		46
Other	11		8		2		21
	$	76	$	129	$	212	$	417



Six Months Ended June 30, 2026
Classification in Consolidated Statement of Income
Service charges on deposit accounts	$	93	$	190	$	—	$	283
Trust income	2		—		378		380
Brokerage services income	3		—		67		70
Other revenues from operations:
Merchant discount and credit card interchange fees	33		49		—		82
Other	26		15		4		45
	$	157	$	254	$	449	$	860

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

- 28 -

8. 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 June 30,
Net periodic pension (benefit) cost	2026		2025		2026		2025
Service cost	$	2	$	2	$	1	$	1
Interest cost on benefit obligation	23		27		—		—
Expected return on plan assets	(42)		(47)		—		—

Amortization of prior service credit and actuarial gains	(1)		—		(1)		(2)
Net periodic benefit	$	(18)	$	(18)	$	—	$	(1)


	Pension Benefits				Other Postretirement Benefits
(Dollars in millions)	Six Months Ended June 30,
Net periodic pension (benefit) cost	2026		2025		2026		2025
Service cost	$	4	$	4	$	1	$	1
Interest cost on benefit obligation	46		54		1		1
Expected return on plan assets	(85)		(93)		—		—

Amortization of prior service credit and actuarial gains	(1)		(1)		(2)		(3)
Net periodic benefit	$	(36)	$	(36)	$	—	$	(1)

Service cost is reflected in Salaries and employee benefits and the other components of net periodic benefit 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 $43 million and $40 million for the three months ended June 30, 2026 and 2025, respectively, and $93 million and $90 million for the six months ended June 30, 2026 and 2025, respectively.

- 29 -

9. Earnings per common share

The computations of basic earnings per common share follow.


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2026		2025		2026		2025
Income available to common shareholders:
Net income	$	818	$	716	$	1,482	$	1,300
Less: Preferred stock dividends	(35)		(35)		(78)		(71)
Net income available to common equity	783		681		1,404		1,229
Less: Income attributable to unvested stock-based compensation awards	(2)		(2)		(3)		(3)
Net income available to common shareholders	$	781	$	679	$	1,401	$	1,226
Weighted-average shares outstanding:
Common shares outstanding and unvested stock-based compensation awards	146,200		159,559		147,835		162,025
Less: Unvested stock-based compensation awards	(309)		(338)		(286)		(324)
Weighted-average shares outstanding	145,891		159,221		147,549		161,701

Basic earnings per common share	$	5.35	$	4.26	$	9.49	$	7.58

The computations of diluted earnings per common share follow.


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share, shares in thousands)	2026		2025		2026		2025
Net income available to common equity	$	783	$	681	$	1,404	$	1,229
Less: Income attributable to unvested stock-based compensation awards	(2)		(2)		(3)		(3)
Net income available to common shareholders	$	781	$	679	$	1,401	$	1,226
Adjusted weighted-average shares outstanding:
Common shares outstanding and unvested stock-based compensation awards	146,200		159,559		147,835		162,025
Less: Unvested stock-based compensation awards	(309)		(338)		(286)		(324)
Plus: Incremental shares from assumed conversion of stock-based compensation awards	867		784		875		810
Adjusted weighted-average shares outstanding (a)	146,758		160,005		148,424		162,511

Diluted earnings per common share	$	5.32	$	4.24	$	9.44	$	7.55

__________________________________________________________________________________

*(a)*Stock-based compensation awards to purchase common stock of M&T representing common shares of 0.1 million in each of the three and six month periods ended June 30, 2026, respectively, and common shares of 0.2 million in each of the three and six month periods ended June 30, 2025, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

- 30 -

10. 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 June 30, 2026 and 2025.


(Dollars in millions)	Investment Securities		Cash Flow Hedges		Defined Benefit Plans		Other		Total Amount Before Tax			Income Tax		Net
Balance — April 1, 2026	$	9	$	9	$	80	$	(8)	$	90		$	(24)	$	66
Other comprehensive income (loss) before reclassifications:
Unrealized holding losses, net	(134)		—		—		—		(134)			35		(99)
Unrealized losses, net	—		(69)		—		—		(69)			16		(53)


Total other comprehensive income (loss) before reclassifications	(134)		(69)		—		—		(203)			51		(152)
Amounts reclassified from accumulated other comprehensive income (loss) that (increase) decrease net income:

Net yield adjustment from cash flow hedges currently in effect	—		(8)		—		—		(8)		(a)	3		(5)
Amortization of prior service credit and actuarial gains	—		—		(2)		—		(2)		(b)	1		(1)


Total other comprehensive income (loss)	(134)		(77)		(2)		—		(213)			55		(158)
Balance — June 30, 2026	$	(125)	$	(68)	$	78	$	(8)	$	(123)		$	31	$	(92)


Balance — April 1, 2025	$	(8)	$	9	$	129	$	(9)	$	121		$	(31)	$	90
Other comprehensive income (loss) before reclassifications:
Unrealized holding gains, net	90		—		—		—		90			(23)		67
Unrealized gains, net	—		43		—		—		43			(11)		32
Other	—		—		—		4		4			(1)		3

Total other comprehensive income (loss) before reclassifications	90		43		—		4		137			(35)		102
Amounts reclassified from accumulated other comprehensive income (loss) that (increase) decrease net income:



Net yield adjustment from cash flow hedges currently in effect	—		33		—		—		33		(a)	(9)		24
Amortization of prior service credit and actuarial gains	—		—		(2)		—		(2)		(b)	1		(1)

Total other comprehensive income (loss)	90		76		(2)		4		168			(43)		125
Balance — June 30, 2025	$	82	$	85	$	127	$	(5)	$	289		$	(74)	$	215

__________________________________________________________________________________

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

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

Accumulated other comprehensive income (loss), net during the three-month periods ended June 30, 2026 and 2025 consisted of the following.


(Dollars in millions)	Investment Securities		Cash Flow Hedges		Defined Benefit Plans		Other		Total
Balance — April 1, 2026	$	6	$	7	$	60	$	(7)	$	66
Net gain (loss) during period	(99)		(58)		(1)		—		(158)
Balance — June 30, 2026	$	(93)	$	(51)	$	59	$	(7)	$	(92)

Balance — April 1, 2025	$	(6)	$	7	$	96	$	(7)	$	90
Net gain (loss) during period	67		56		(1)		3		125
Balance — June 30, 2025	$	61	$	63	$	95	$	(4)	$	215

- 31 -

10. Comprehensive income, continued


(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 (loss) before reclassifications:
Unrealized holding losses, net	(329)		—		—		—		(329)			84		(245)
Unrealized losses, net	—		(145)		—		—		(145)			36		(109)
Other	—		—		—		(1)		(1)			—		(1)

Total other comprehensive income (loss) before reclassifications	(329)		(145)		—		(1)		(475)			120		(355)
Amounts reclassified from accumulated other comprehensive income (loss) 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	—		(13)		—		—		(13)		(b)	4		(9)
Amortization of prior service credit and actuarial gains	—		—		(3)		—		(3)		(c)	1		(2)


Total other comprehensive income (loss)	(333)		(158)		(3)		(1)		(495)			126		(369)
Balance — June 30, 2026	$	(125)	$	(68)	$	78	$	(8)	$	(123)		$	31	$	(92)


Balance — January 1, 2025	$	(205)	$	(135)	$	131	$	(10)	$	(219)		$	55	$	(164)
Other comprehensive income (loss) before reclassifications:
Unrealized holding gains, net	287		—		—		—		287			(73)		214
Unrealized gains, net	—		134		—		—		134			(34)		100
Other	—		—		—		5		5			(1)		4

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



Net yield adjustment from cash flow hedges currently in effect	—		86		—		—		86		(b)	(22)		64
Amortization of prior service credit and actuarial gains	—		—		(4)		—		(4)		(c)	1		(3)

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

__________________________________________________________________________________

*(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 six months ended June 30, 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 gain (loss) during period	(248)		(118)		(2)		(1)		(369)
Balance — June 30, 2026	$	(93)	$	(51)	$	59	$	(7)	$	(92)

Balance — January 1, 2025	$	(153)	$	(101)	$	98	$	(8)	$	(164)
Net gain (loss) during period	214		164		(3)		4		379
Balance — June 30, 2025	$	61	$	63	$	95	$	(4)	$	215

- 32 -

11. Derivative financial instruments

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

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
June 30, 2026
Fair value hedges:
Fixed rate long-term borrowings (b)	$	6,100	4.3	3.56	%	3.79	%	$	(10)

Cash flow hedges:
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (c)	26,200		1.1	3.70		3.63		(7)
Total	$	32,300	1.7					$	(17)
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 $92 million and $6 million at June 30, 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 losses of $61 million and of gains of $96 million at June 30, 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 $10.2 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 and other derivative contracts with a total notional value of $1.4 billion and $1.6 billion at June 30, 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 $48.5 billion and $43.0 billion at June 30, 2026 and December 31, 2025, respectively. The notional amounts of foreign currency and other option and futures contracts not designated as hedging instruments aggregated $2.4 billion at each of June 30, 2026 and December 31, 2025.

- 33 -

11. Derivative financial instruments, continued

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


	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
(Dollars in millions)	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Derivatives designated and qualifying as hedging instruments (a)
Interest rate swap agreements	$	—	$	—	$	17	$	15
Commitments to sell real estate loans	—		1		1		1
	—		1		18		16
Derivatives not designated and qualifying as hedging instruments (a)
Mortgage banking:
Commitments to originate real estate loans for sale	9		17		4		21
Commitments to sell real estate loans	8		24		2		6
Interest rate and other contracts (b)	7		13		3		2
	24		54		9		29
Other:
Interest rate contracts (b)	196		173		456		394
Foreign exchange and other option and futures contracts	22		17		20		15
	218		190		476		409
Total derivatives	$	242	$	245	$	503	$	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 June 30, 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 $366 million and $341 million, respectively, and in a liability position of $6 million and $32 million, respectively.


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


Derivatives not designated as hedging instruments
Interest rate and other contracts (b)	$	17			$	7
Foreign exchange and other option and futures contracts (c)	5				2
Total	$	22			$	9

__________________________________________________________________________________

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

*(b)*Includes gains of $18 million and $7 million in Trading account and other non-hedging derivative gains for the three months ended June 30, 2026 and 2025, respectively, and losses of $1 million in Mortgage banking revenues in the Company's Consolidated Statement of Income for the three months ended June 30, 2026.

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

- 34 -

11. Derivative financial instruments, continued


	Amount of Gain (Loss) Recognized
	Six Months Ended June 30,
	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)	$	(87)	$	87	$	147	$	(147)


Derivatives not designated as hedging instruments
Interest rate and other contracts (b)	$	27			$	12
Foreign exchange and other option and futures contracts (c)	11				6
Total	$	38			$	18

__________________________________________________________________________________

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

*(b)*Includes gains of $26 million and $12 million in Trading account and other non-hedging derivative gains for the six months ended June 30, 2026 and 2025, respectively, and gains of $1 million in Mortgage banking revenues in the Company's Consolidated Statement of Income for the six months ended June 30, 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)	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges
Long-term borrowings	$	5,986	$	6,072	$	(103)	$	(16)

The net effect of interest rate swap agreements was to increase net interest income by $5 million and $6 million during the three-month and six-month periods ended June 30, 2026, respectively, and to decrease net interest income by $44 million and $106 million during the three-month and six-month periods ended June 30, 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 $8 million and a decrease of $33 million for the three-month periods ended June 30, 2026 and 2025, respectively, and an increase of $13 million and a decrease of $86 million for the six-month periods ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the unrealized loss recognized in other comprehensive income related to cash flow hedges was $68 million of which losses of $39 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 $161 million and $224 million at June 30, 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.

- 35 -

11. Derivative financial instruments, continued


(Dollars in millions)	Fair Value Amount in Consolidated Balance Sheet		Master Netting Agreements		Collateral (a)		Net Amount
June 30, 2026
Derivative assets
Clearinghouse settlements (b)	$	13	$	—	$	—	$	13
Subject to master netting agreements	167		(14)		(148)		5
Not subject to master netting agreements (c)	62		—		(1)		61
Total	$	242	$	(14)	$	(149)	$	79
Derivative liabilities
Clearinghouse settlements (b)	$	21	$	—	$	—	$	21
Subject to master netting agreements	14		(14)		3		3
Not subject to master netting agreements (c)	468		—		—		468
Total	$	503	$	(14)	$	3	$	492
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)*Includes postings of cash and investment securities only 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.

12. Variable interest entities and asset securitizations

The Company’s securitization activities include securitizing loans originated for sale into government-issued or guaranteed mortgage-backed securities. Additionally, M&T Bank and its subsidiaries have issued asset-backed notes secured by 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.

- 36 -

12. Variable interest entities and asset securitizations, continued

Information about the asset-backed notes issued to investors and the respective special purpose trust at June 30, 2026 and December 31, 2025 are included in the following table.


(Dollars in millions)		June 30, 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	$	177	$	78	0.4	5.74	%	$	244	$	141
March 2024	Automobile loans	197		183		1.0	5.20		252		239
August 2024	Equipment finance loans and leases	383		315		1.1	4.82		483		396
February 2025	Automobile loans	424		407		1.2	4.71		529		513
May 2025	Equipment finance loans and leases	461		373		1.5	4.77		546		441
February 2026	Recreational finance loans	514		452		4.6	4.35		—		—
May 2026	Automobile loans	976		971		1.6	4.43		—		—
				$	2,779						$	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 June 30, 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 $10.7 billion at each of June 30, 2026 and December 31, 2025. 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)	June 30, 2026		December 31, 2025
Affordable housing projects:
Carrying amount (a)	$	1,816	$	1,867
Amount of future funding commitments included in carrying amount (b)	806		889
Contingent commitments	108		109
Renewable energy:
Carrying amount (a)	96		67
Amount of future funding commitments included in carrying amount (b)	35		66
Other:
Carrying amount (a)	45		33
Amount of future funding commitments included in carrying amount	—		—

__________________________________________________________________________________

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

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

- 37 -

12. 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 $50 million of investment amortization) and $10 million (net of $45 million of investment amortization) for the three months ended June 30, 2026 and 2025, respectively, and $32 million (net of $99 million of investment amortization) and $20 million (net of $89 million of investment amortization) for the six months ended June 30, 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 June 30, 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 $5 million and $11 million for the three-month and six-month periods ended June 30, 2026, respectively, and $6 million and $12 million for the three-month and six-month periods ended June 30, 2025, respectively. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company has not provided financial or other support to the partnerships that was not contractually required. Although the Company currently estimates that no material losses are probable, its maximum exposure to loss from its investments in such partnerships as of June 30, 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.

13. 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 June 30, 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.

- 38 -

13. Fair value measurements, continued

Recurring fair value measurements

The following tables present assets and liabilities at June 30, 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
June 30, 2026

Investment securities available for sale:
U.S. Treasury	$	3,227	$	—	$	3,227	$	—
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,755		—		4,755		—
Residential	17,387		—		17,387		—
Other	1		—		1		—
Total investment securities available for sale	25,370		—		25,370		—
Equity securities	245		245		—		—
Real estate loans held for sale	515		—		515		—
Residential mortgage loan servicing rights	540		—		—		540
Other assets	332		13		315		4
Total assets	$	27,002	$	258	$	26,200	$	544
Other liabilities	$	503	$	—	$	503	$	—
Total liabilities	$	503	$	—	$	503	$	—

December 31, 2025

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	342		12		327		3
Total assets	$	24,750	$	293	$	24,454	$	3
Other liabilities	$	454	$	—	$	454	$	—
Total liabilities	$	454	$	—	$	454	$	—

- 39 -

13. Fair value measurements, continued

The changes in fair value of residential mortgage loans servicing right assets for the three-month and six-month periods ended June 30, 2026 are presented in the following table.


(Dollars in millions)	Residential Mortgage Loan Servicing Rights (Level 3)
Three Months Ended June 30, 2026
Balance at March 31, 2026 — at fair value	$	542
Additions	7
Changes in fair value included in Mortgage banking revenues (a)	(9)
Balance at June 30, 2026 — at fair value	$	540
Six Months Ended June 30, 2026
Balance at December 31, 2025 — at amortized cost	$	287
January 1, 2026 - fair value accounting election	263
Additions	15
Changes in fair value included in Mortgage banking revenues (a)	(25)
Balance at June 30, 2026 — at fair value	$	540

__________________________________________________________________________________

*(a)*Includes a $16 million and a $33 million reduction in fair value attributable to the realization of expected net servicing cash flows over time for the three-month and six-month periods ended June 30, 2026, respectively.

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 June 30, 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 5% - 18%)	8.00		%
Impact on fair value of 10% adverse change	$	(15)
Impact on fair value of 20% adverse change	(30)
Weighted-average OAS (range 5% - 20%)	7.20		%
Impact on fair value of 10% adverse change	$	(15)
Impact on fair value of 20% adverse change	(29)

- 40 -

13. Fair value measurements, continued

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 June 30, 2026 and 2025.


	June 30,
(Dollars in millions)	2026		2025

Level 2	$	100	$	166
Level 3	272		478
	$	372	$	644
Changes in fair value recognized for the three months ended	$	(51)	$	(115)
Changes in fair value recognized for the six months ended	(77)		(157)

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 June 30, 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 June 30, 2026, December 31, 2025 and June 30, 2025.

Disclosures of fair value of financial instruments

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


(Dollars in millions)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
June 30, 2026
Financial assets:
Cash and due from banks	$	1,939	$	1,939	$	1,746	$	193	$	—
Interest-bearing deposits at banks	15,499		15,499		—		15,499		—
Investment securities held to maturity	11,908		11,123		—		11,084		39
Loans, net	141,017		140,793		—		4,316		136,477
Financial liabilities:
Time deposits (a)	14,988		14,946		—		14,946		—
Short-term borrowings	4,614		4,614		—		4,614		—
Long-term borrowings	13,568		13,785		—		13,785		—

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 $2.9 billion and $2.8 billion of time deposits with balances greater than $250,000 at June 30, 2026 and December 31, 2025, respectively.

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13. Fair value measurements, continued

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 conditions, interest rates, liquidity and credit spreads and other factors can significantly 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.

14. Commitments and contingencies

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


(Dollars in millions)	June 30, 2026		December 31, 2025
Commitments to extend credit:
Commercial and industrial	$	37,156	$	35,654
Commercial real estate loans to be sold	485		773
Other commercial real estate	3,292		2,331
Residential real estate loans to be sold	258		224
Other residential real estate	794		679
Home equity lines of credit	7,885		7,974
Credit cards	6,762		6,601
Other	354		444
Standby letters of credit	2,332		2,318
Commercial letters of credit	63		72
Financial guarantees and indemnification contracts	4,883		4,751
Commitments to sell real estate loans	1,207		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 $12.8 billion and $12.9 billion at June 30, 2026 and December 31, 2025, respectively, that the Company had the unconditional right to cancel prior to funding. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management's assessment of the customer's creditworthiness.

Financial guarantees and indemnification contracts are primarily 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 June 30, 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

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14. Commitments and contingencies, continued

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

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are accounted for as derivatives and along with commitments to originate real estate loans 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. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. At June 30, 2026, the Company's estimate of its obligation to loan purchasers was not material to the Company’s consolidated financial position.

At June 30, 2026, the Company had no remaining liability related to the FDIC special assessment, compared with $22 million at December 31, 2025. Such amount was classified as Accrued interest and other liabilities in the Consolidated Balance Sheet at December 31, 2025. 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 June 30, 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.

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14. Commitments and contingencies, continued

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. On July 14, 2026, Wilmington Trust N.A. filed a motion to dismiss the complaint. 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 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 June 30, 2026.

15. Segment information

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

The financial information of the Company's segments was compiled utilizing the accounting policies described in note 21 of Notes to Financial Statements in 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 June 30,
	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)	$	559	$	531	$	974	$	988	$	149	$	166	$	110	$	28	$	1,792	$	1,713
Noninterest income	193		205		236		234		235		225		76		19		740		683
Total revenue	752		736		1,210		1,222		384		391		186		47		2,532		2,396
Provision for credit losses	23		60		70		71		—		2		27		(8)		120		125
Salaries and employee benefits	145		150		203		201		112		107		366		355		826		813
Depreciation and amortization	11		11		34		60		2		2		46		51		93		124
Other direct expenses	73		73		107		95		28		26		222		205		430		399
Indirect expense (b)	134		129		313		292		81		82		(528)		(503)		—		—
Income (loss) before taxes	366		313		483		503		161		172		53		(53)		1,063		935
Income tax expense (benefit)	95		82		123		128		41		44		(14)		(35)		245		219
Net income (loss)	$	271	$	231	$	360	$	375	$	120	$	128	$	67	$	(18)	$	818	$	716
Average total assets	$	80,930	$	78,497	$	60,204	$	55,995	$	4,728	$	4,272	$	70,670	$	71,497	$	216,532	$	210,261

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15. Segment information, continued


	Six Months Ended June 30,
	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)	$	1,094	$	1,060	$	1,924	$	1,960	$	305	$	337	$	221	$	51	$	3,544	$	3,408
Noninterest income	386		378		453		442		456		434		134		40		1,429		1,294
Total revenue	1,480		1,438		2,377		2,402		761		771		355		91		4,973		4,702
Provision for credit losses	52		96		152		150		—		5		56		4		260		255
Salaries and employee benefits	290		301		400		397		221		213		829		789		1,740		1,700
Depreciation and amortization	21		21		70		122		4		4		95		107		190		254
Other direct expenses	151		140		210		194		63		52		433		411		857		797
Indirect expense (b)	261		252		602		571		161		163		(1,024)		(986)		—		—
Income (loss) before taxes	705		628		943		968		312		334		(34)		(234)		1,926		1,696
Income tax expense (benefit)	184		166		239		246		80		85		(59)		(101)		444		396
Net income (loss)	$	521	$	462	$	704	$	722	$	232	$	249	$	25	$	(133)	$	1,482	$	1,300
Average total assets	$	79,873	$	78,927	$	59,516	$	55,193	$	4,736	$	4,187	$	71,061	$	70,989	$	215,186	$	209,296

__________________________________________________________________________________

*(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 $12 million and $9 million for the three-month periods ended June 30, 2026 and 2025, respectively, and $23 million and $21 million for the six-month periods ended June 30, 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, human resources and other support services provided by the "All Other" category to the Commercial Bank, Retail Bank and Institutional Services and Wealth Management segments.

16. Relationship with BLG and Bayview Financial

M&T holds a 20% minority interest in BLG, a privately-held commercial mortgage company. That investment had no remaining carrying value at June 30, 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 $47 million and $80 million for the three-month and six-month periods ended June 30, 2026. No distributions were received for the three-month and six-month periods ended June 30, 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 $819 million at June 30, 2026 and $875 million at December 31, 2025. The Company also sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $183.6 billion and $156.9 billion at June 30, 2026 and December 31, 2025, respectively. Revenues earned for servicing and sub-servicing such loans were $68 million and $56 million for the three-month periods ended June 30, 2026 and 2025, respectively, and $131 million and $97 million for the six-month periods ended June 30, 2026 and 2025, respectively.

The Company also held $28 million and $32 million of mortgage-backed securities in its held-to-maturity portfolio at June 30, 2026 and December 31, 2025, respectively, that were securitized by Bayview Financial. The Company had various lending commitments to Bayview Financial totaling $929 million at June 30, 2026, with $764 million and $635 million of outstanding balances at June 30, 2026 and December 31, 2025, respectively. Bayview Financial also maintained $4.7 billion and $3.5 billion of deposit balances with the Company at June 30, 2026 and December 31, 2025, respectively, inclusive of deposits related to loan servicing relationships.

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