Group 1 - M&T Bank Corporation plans to host conference calls to review its 2027 quarterly financial results on specific dates [1][3] - The first quarter earnings call is scheduled for April 15, 2027, at 8:00 a.m. (ET) [3] - The second quarter earnings call is set for July 16, 2027, at 8:00 a.m. (ET) [3] - The third quarter earnings call will take place on October 15, 2027, at 8:00 a.m. (ET) [3] - The fourth quarter earnings call is planned for January 18, 2028, at 8:00 a.m. (ET) [3] Group 2 - M&T Bank is a financial holding company headquartered in Buffalo, New York [2] - The principal banking subsidiary, M&T Bank, provides banking products and services across the eastern U.S. from Maine to Virginia and Washington, D.C. [2] - Trust-related services are offered in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and M&T Bank [2]

Company Overview - M&T Bank Corporation is headquartered in Buffalo, N.Y. and operates in multiple states including New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia with over 961 domestic banking offices [11] Zacks Rank and Style Scores - M&T Bank Corporation currently holds a Zacks Rank of 3 (Hold) and has a VGM Score of B, indicating a moderate investment outlook [11] - The company has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 11.32, making it appealing to value investors [12] - Six analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.42 to $16.53 per share [12] - M&T Bank Corporation has an average earnings surprise of +6.1%, suggesting a history of exceeding earnings expectations [12] Investment Considerations - With a solid Zacks Rank and top-tier Value and VGM Style Scores, M&T Bank Corporation is recommended for investors' consideration [12]

[Glossary of Terms](index=5&type=section&id=Glossary%20of%20Terms) This section provides definitions for key terminology used throughout the financial report [Part I. Financial Information](index=6&type=section&id=Part%20I.%20Financial%20Information) This part contains the unaudited interim financial statements and management's discussion and analysis of financial results [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents the unaudited consolidated balance sheet, income statement, cash flows, and changes in equity for the specified periods [Consolidated Balance Sheet – June 30, 2025 and December 31, 2024](index=6&type=section&id=Consolidated%20Balance%20Sheet%20%E2%80%93%20June%2030%2C%202025%20and%20December%2031%2C%202024) Details the company's assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (Dollars in millions) | Metric | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Total assets | $211,584 | $208,105 | $3,479 | 1.67% | | Total liabilities | $183,059 | $179,078 | $3,981 | 2.22% | | Total shareholders' equity | $28,525 | $29,027 | $(502) | -1.73% | | Loans (a) | $136,116 | $135,581 | $535 | 0.39% | | Total deposits | $164,453 | $161,095 | $3,358 | 2.08% | [Consolidated Statement of Income – Three and six months ended June 30, 2025 and 2024](index=7&type=section&id=Consolidated%20Statement%20of%20Income%20%E2%80%93%20Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Outlines revenues, expenses, and net income for the three and six months ended June 30, 2025, and 2024 Consolidated Statement of Income Highlights (Dollars in millions, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Total interest income | $2,609 | $2,789 | $(180) | -6.45% | | Total interest expense | $896 | $1,071 | $(175) | -16.34% | | Net interest income | $1,713 | $1,718 | $(5) | -0.29% | | Total other income | $683 | $584 | $99 | 16.95% | | Total other expense | $1,336 | $1,297 | $39 | 3.01% | | Net income | $716 | $655 | $61 | 9.31% | | Diluted EPS | $4.24 | $3.73 | $0.51 | 13.67% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Total interest income | $5,169 | $5,534 | $(365) | -6.60% | | Total interest expense | $1,761 | $2,136 | $(375) | -17.56% | | Net interest income | $3,408 | $3,398 | $10 | 0.29% | | Total other income | $1,294 | $1,164 | $130 | 11.17% | | Total other expense | $2,751 | $2,693 | $58 | 2.15% | | Net income | $1,300 | $1,186 | $114 | 9.61% | | Diluted EPS | $7.55 | $6.76 | $0.79 | 11.69% | [Consolidated Statement of Comprehensive Income – Three and six months ended June 30, 2025 and 2024](index=8&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income%20%E2%80%93%20Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Reports net income and other comprehensive income components for the three and six months ended June 30, 2025, and 2024 Consolidated Statement of Comprehensive Income Highlights (Dollars in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income | $716 | $655 | $61 | 9.31% | | Net unrealized gains on investment securities | $67 | $18 | $49 | 272.22% | | Cash flow hedges adjustments | $56 | $22 | $34 | 154.55% | | Total comprehensive income | $841 | $693 | $148 | 21.36% | | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income | $1,300 | $1,186 | $114 | 9.61% | | Net unrealized gains on investment securities | $214 | $8 | $206 | 2575.00% | | Cash flow hedges adjustments | $164 | $(95) | $259 | 272.63% | | Total comprehensive income | $1,679 | $1,094 | $585 | 53.47% | [Consolidated Statement of Cash Flows – Six months ended June 30, 2025 and 2024](index=9&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows%20%E2%80%93%20Six%20months%20ended%20June%2030%2C%202025%20and%202024) Summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Consolidated Statement of Cash Flows Highlights (Dollars in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net cash from operating activities | $1,479 | $1,962 | $(483) | -24.62% | | Net cash from investing activities | $(2,985) | $(1,457) | $(1,528) | 104.87% | | Net cash from financing activities | $1,725 | $(458) | $2,183 | 476.64% | | Net change in cash, cash equivalents and restricted cash | $219 | $47 | $172 | 365.96% | [Consolidated Statement of Changes in Shareholders' Equity – Three and six months ended June 30, 2025 and 2024](index=10&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Shareholders'%20Equity%20%E2%80%93%20Three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Details the changes in shareholders' equity accounts for the three and six months ended June 30, 2025, and 2024 Shareholders' Equity Changes (Six Months Ended June 30, 2025 vs. January 1, 2025) (Dollars in millions) | Metric | January 1, 2025 | June 30, 2025 | Change (Amount) | |:---|:---|:---|:---| | Total shareholders' equity | $29,027 | $28,525 | $(502) | | Total comprehensive income | - | $1,679 | $1,679 | | Purchases of treasury stock | - | $(1,742) | $(1,742) | | Common stock cash dividends | - | $(436) | $(436) | Shareholders' Equity Changes (Six Months Ended June 30, 2024 vs. January 1, 2024) (Dollars in millions) | Metric | January 1, 2024 | June 30, 2024 | Change (Amount) | |:---|:---|:---|:---| | Total shareholders' equity | $26,957 | $28,424 | $1,467 | | Total comprehensive income | - | $1,094 | $1,094 | | Issuance of Series J preferred stock | - | $733 | $733 | | Common stock cash dividends | - | $(446) | $(446) | [Notes to Financial Statements](index=11&type=section&id=Notes%20to%20Financial%20Statements) Provides detailed explanations of significant accounting policies and specific financial statement items [1. Significant accounting policies](index=11&type=section&id=1.%20Significant%20accounting%20policies) Outlines the accounting principles and policies applied in preparing the interim financial statements - The consolidated interim financial statements were compiled in accordance with GAAP, using accounting policies from M&T's 2024 Annual Report[29](index=29&type=chunk) - Standards applicable but not yet adopted by June 30, 2025, primarily address enhanced disclosure requirements for income taxes and disaggregated income statement presentation of certain expenses, and are **not expected to have a material impact**[29](index=29&type=chunk) [2. Divestiture](index=11&type=section&id=2.%20Divestiture) Describes the sale of Wilmington Trust SP Services Inc and its financial impact - In May 2025, the Company sold Wilmington Trust SP Services Inc, a subsidiary specializing in institutional services, to a third party[30](index=30&type=chunk) - The transaction resulted in a **gain of $10 million**, included in 'Other revenues from operations' for the three-month and six-month periods ended June 30, 2025[30](index=30&type=chunk) - The divested subsidiary's revenues and expenses were **not material** to the Company's consolidated results for the periods presented[30](index=30&type=chunk) [3. Investment securities](index=12&type=section&id=3.%20Investment%20securities) Details the composition, maturity, and fair value of the investment securities portfolio Investment Securities Portfolio (Dollars in millions) | Category | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Available for sale | $21,540 | $18,849 | $2,691 | 14.28% | | Held to maturity | $13,024 | $14,195 | $(1,171) | -8.25% | | Equity and other securities | $1,004 | $1,007 | $(3) | -0.30% | | **Total investment securities** | **$35,568** | **$34,051** | **$1,517** | **4.46%** | - At June 30, 2025, the Company owned 3,427 individual debt securities with aggregate **gross unrealized losses of $1.1 billion**[35](index=35&type=chunk) - The Company concluded it expected to recover the amortized cost basis of its investment and **does not intend to sell**, nor is it anticipated to be required to sell, any impaired investment securities at a loss[35](index=35&type=chunk) Debt Securities by Contractual Maturity (June 30, 2025, Dollars in millions) | Maturity | Available for Sale (Amortized Cost) | Available for Sale (Fair Value) | Held to Maturity (Amortized Cost) | Held to Maturity (Fair Value) | |:---|:---|:---|:---|:---| | Due in one year or less | $2,895 | $2,900 | $82 | $82 | | Due after one year through five years | $4,912 | $4,940 | $641 | $631 | | Due after five years through ten years | $0 | $0 | $1,399 | $1,360 | | Due after ten years | $0 | $0 | $548 | $487 | | Mortgage-backed securities | $13,651 | $13,700 | $10,354 | $9,513 | | **Total** | **$21,458** | **$21,540** | **$13,024** | **$12,073** | [4. Loans and allowance for loan losses](index=16&type=section&id=4.%20Loans%20and%20allowance%20for%20loan%20losses) Analyzes the loan portfolio composition, credit quality, and adequacy of the allowance for loan losses Loan Portfolio Summary (Dollars in millions) | Loan Type | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commercial and industrial | $61,660 | $61,481 | $179 | 0.29% | | Commercial real estate | $20,155 | $20,780 | $(625) | -3.01% | | Residential real estate | $24,117 | $23,166 | $951 | 4.10% | | Consumer | $25,772 | $22,570 | $3,202 | 14.19% | | **Total Loans** | **$136,116** | **$135,581** | **$535** | **0.39%** | | Allowance for loan losses | $(2,197) | $(2,184) | $(13) | 0.59% | | **Net Loans** | **$133,919** | **$133,397** | **$522** | **0.39%** | Nonaccrual Loans (Dollars in millions) | Loan Type | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commercial and industrial | $787 | $696 | $91 | 13.07% | | Commercial real estate | $376 | $468 | $(92) | -19.66% | | Residential real estate | $265 | $279 | $(14) | -5.02% | | Consumer | $141 | $148 | $(7) | -4.73% | | **Total Nonaccrual Loans** | **$1,573** | **$1,690** | **$(117)** | **-6.92%** | Allowance for Loan Losses and Net Charge-offs (Dollars in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Beginning balance (Allowance for Loan Losses) | $2,184 | $2,129 | $55 | 2.58% | | Provision for credit losses | $235 | $350 | $(115) | -32.86% | | Net charge-offs | $(222) | $(275) | $53 | -19.27% | | Ending balance (Allowance for Loan Losses) | $2,197 | $2,204 | $(7) | -0.32% | Loan Modification Activities (Six Months Ended June 30, 2025 vs. 2024, Dollars in millions) | Loan Class | 2025 Total Modified Loans | 2024 Total Modified Loans | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commercial and industrial | $223 | $209 | $14 | 6.70% | | Commercial real estate | $452 | $377 | $75 | 19.89% | | Other commercial construction | $214 | $197 | $17 | 8.63% | | Residential | $87 | $105 | $(18) | -17.14% | | **Total** | **$986** | **$916** | **$70** | **7.64%** | [5. Borrowings](index=27&type=section&id=5.%20Borrowings) Summarizes short-term and long-term borrowings, including recent debt issuances and available credit facilities Borrowings Summary (Dollars in millions) | Category | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Short-term borrowings | $2,071 | $1,060 | $1,011 | 95.38% | | Long-term borrowings | $12,380 | $12,605 | $(225) | -1.79% | | **Total Borrowings** | **$14,451** | **$13,665** | **$786** | **5.75%** | - In June 2025, M&T issued **$750 million of senior notes** (5.179% fixed, maturing July 2031) and M&T Bank issued **$750 million of senior notes** (4.762% fixed, maturing July 2028)[72](index=72&type=chunk) - In July 2025, M&T issued **$750 million of subordinated notes** (5.40% fixed, maturing July 2035)[72](index=72&type=chunk) - M&T Bank had secured borrowing facilities available with the FHLB of New York and the FRB of New York totaling approximately **$18.1 billion and $24.7 billion**, respectively, at June 30, 2025[73](index=73&type=chunk) [6. Shareholders' equity](index=28&type=section&id=6.%20Shareholders'%20equity) Details the components of shareholders' equity, including outstanding preferred stock series Preferred Stock Outstanding (Dollars in millions, except per share) | Series | Shares Issued and Outstanding (June 30, 2025) | Carrying Amount (June 30, 2025) | Annual Dividend Rate | |:---|:---|:---|:---| | Series F | 50,000 | $500 | 5.125% | | Series G | 40,000 | $400 | 7.304% | | Series H | 10,000,000 | $261 | 5.625% | | Series I | 50,000 | $500 | 3.500% | | Series J | 75,000 | $733 | 7.500% | | **Total** | **10,215,000** | **$2,394** | | - On August 15, 2024, M&T **redeemed all outstanding shares** of the Series E Preferred Stock[75](index=75&type=chunk) [7. Revenue from contracts with customers](index=29&type=section&id=7.%20Revenue%20from%20contracts%20with%20customers) Disaggregates noninterest income subject to revenue recognition standards Sources of Noninterest Income Subject to Revenue Recognition (Six Months Ended June 30, Dollars in millions) | Classification | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Service charges on deposit accounts | $270 | $251 | $19 | 7.57% | | Trust income | $359 | $330 | $29 | 8.79% | | Brokerage services income | $63 | $59 | $4 | 6.78% | | Merchant discount and credit card interchange fees | $83 | $80 | $3 | 3.75% | | Other revenues from operations | $39 | $35 | $4 | 11.43% | | **Total** | **$814** | **$755** | **$59** | **7.81%** | - Deferred revenue decreased from **$57 million** at December 31, 2024, to **$52 million** at June 30, 2025[79](index=79&type=chunk) [8. Pension plans and other postretirement benefits](index=30&type=section&id=8.%20Pension%20plans%20and%20other%20postretirement%20benefits) Reports the net periodic benefit cost for defined benefit and defined contribution plans Net Periodic Benefit for Defined Benefit Plans (Six Months Ended June 30, Dollars in millions) | Metric | Pension Benefits 2025 | Pension Benefits 2024 | Other Postretirement Benefits 2025 | Other Postretirement Benefits 2024 | |:---|:---|:---|:---|:---| | Service cost | $4 | $5 | $1 | $1 | | Interest cost on projected benefit obligation | $54 | $58 | $1 | $1 | | Expected return on plan assets | $(93) | $(101) | $0 | $0 | | Amortization of prior service credit | $0 | $0 | $(1) | $(1) | | Amortization of net actuarial gain | $(1) | $(1) | $(2) | $(1) | | **Net periodic benefit** | **$(36)** | **$(39)** | **$(1)** | **$0** | - Expenses for defined contribution pension and retirement savings plans totaled **$90 million** for the six months ended June 30, 2025, up from **$85 million** in the prior year[82](index=82&type=chunk) [9. Earnings per common share](index=32&type=section&id=9.%20Earnings%20per%20common%20share) Presents the calculation of basic and diluted earnings per common share Basic Earnings Per Common Share (Six Months Ended June 30, Dollars in millions, except per share) | Metric | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income available to common shareholders | $1,226 | $1,131 | $95 | 8.40% | | Weighted-average shares outstanding (thousands) | 161,701 | 166,705 | (5,004) | -3.00% | | **Basic earnings per common share** | **$7.58** | **$6.79** | **$0.79** | **11.63%** | Diluted Earnings Per Common Share (Six Months Ended June 30, Dollars in millions, except per share) | Metric | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income available to common shareholders | $1,226 | $1,131 | $95 | 8.40% | | Adjusted weighted-average shares outstanding (thousands) | 162,511 | 167,372 | (4,861) | -2.90% | | **Diluted earnings per common share** | **$7.55** | **$6.76** | **$0.79** | **11.69%** | [10. Comprehensive income](index=33&type=section&id=10.%20Comprehensive%20income) Details the components and changes in accumulated other comprehensive income Accumulated Other Comprehensive Income (Loss), Net (Dollars in millions) | Component | June 30, 2025 | December 31, 2024 | Change (Amount) | |:---|:---|:---|:---| | Investment securities | $61 | $(153) | $214 | | Cash flow hedges | $63 | $(101) | $164 | | Defined benefit plans | $95 | $98 | $(3) | | Other | $(4) | $(8) | $4 | | **Total** | **$215** | **$(164)** | **$379** | - Total other comprehensive income (loss) for the six months ended June 30, 2025, was a **gain of $379 million**, compared to a **loss of $92 million** in the prior year[23](index=23&type=chunk)[85](index=85&type=chunk) [11. Derivative financial instruments](index=34&type=section&id=11.%20Derivative%20financial%20instruments) Discloses the use and fair value of derivative instruments for hedging and other purposes Interest Rate Swap Agreements - Designated as Hedges (Notional Amount, Dollars in millions) | Category | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Fair value hedges | $6,100 | $5,365 | $735 | 13.70% | | Cash flow hedges | $26,650 | $30,819 | $(4,169) | -13.53% | | **Total** | **$32,750** | **$36,184** | **$(3,434)** | **-9.49%** | Fair Values of Derivative Instruments (Dollars in millions) | Category | June 30, 2025 (Asset) | December 31, 2024 (Asset) | June 30, 2025 (Liability) | December 31, 2024 (Liability) | |:---|:---|:---|:---|:---| | Derivatives designated as hedging instruments | $27 | $6 | $4 | $3 | | Derivatives not designated as hedging instruments | $238 | $249 | $550 | $819 | | **Total Derivatives** | **$265** | **$255** | **$554** | **$822** | - The net effect of interest rate swap agreements **decreased net interest income by $106 million** for the six months ended June 30, 2025, compared to **$213 million** for the same period in 2024[100](index=100&type=chunk) [12. Variable interest entities and asset securitizations](index=37&type=section&id=12.%20Variable%20interest%20entities%20and%20asset%20securitizations) Describes the company's involvement with VIEs, including asset-backed securitizations and tax equity partnerships Asset-Backed Notes Issued to Investors (Dollars in millions) | Issue Date | Collateral Type | June 30, 2025 (Notes to Investors) | December 31, 2024 (Notes to Investors) | |:---|:---|:---|:---| | August 2023 | Equipment finance loans and leases | $214 | $297 | | March 2024 | Automobile loans | $302 | $371 | | August 2024 | Equipment finance loans and leases | $478 | $561 | | February 2025 | Automobile loans | $627 | $0 | | May 2025 | Equipment finance loans and leases | $520 | $0 | | **Total** | | **$2,141** | **$1,229** | Tax Equity Partnerships (Carrying Amount and Future Funding Commitments, Dollars in millions) | Category | June 30, 2025 (Carrying Amount) | December 31, 2024 (Carrying Amount) | June 30, 2025 (Future Funding Commitments) | December 31, 2024 (Future Funding Commitments) | |:---|:---|:---|:---|:---| | Affordable housing projects | $1,527 | $1,384 | $596 | $467 | | Renewable energy | $104 | $135 | $101 | $46 | | Other | $35 | $37 | $0 | $0 | | **Total** | **$1,666** | **$1,556** | **$697** | **$513** | - The reduction to income tax expense from investments accounted for using the proportional amortization method was **$20 million** for the six months ended June 30, 2025, up from **$15 million** in 2024[111](index=111&type=chunk) - The reduction to income tax expense from renewable energy credit investments was **$12 million** for the six months ended June 30, 2025, down from **$20 million** in 2024[111](index=111&type=chunk) - **Maximum exposure to loss** from investments in tax equity partnerships was **$2.1 billion** at June 30, 2025[111](index=111&type=chunk) [13. Fair value measurements](index=40&type=section&id=13.%20Fair%20value%20measurements) Provides information on assets and liabilities measured at fair value on a recurring and nonrecurring basis Assets and Liabilities Measured at Fair Value on a Recurring Basis (Dollars in millions) | Category | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | **Total Assets** | **$22,755** | **$19,961** | **$2,794** | **14.00%** | | Trading account | $93 | $101 | $(8) | -7.92% | | Investment securities available for sale | $21,540 | $18,849 | $2,691 | 14.28% | | Equity securities | $274 | $235 | $39 | 16.60% | | Real estate loans held for sale | $583 | $521 | $62 | 11.90% | | **Total Liabilities** | **$554** | **$822** | **$(268)** | **-32.60%** | - Loans subject to nonrecurring fair value measurement decreased from **$847 million** at December 31, 2024, to **$644 million** at June 30, 2025[121](index=121&type=chunk) - Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves were **decreases of $157 million** for the six months ended June 30, 2025[121](index=121&type=chunk) [14. Commitments and contingencies](index=43&type=section&id=14.%20Commitments%20and%20contingencies) Outlines significant credit-related commitments, legal contingencies, and other potential liabilities Significant Credit-Related Commitments (Dollars in millions) | Commitment Type | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commitments to extend credit | $52,139 | $50,671 | $1,468 | 2.90% | | Standby letters of credit | $2,305 | $2,260 | $45 | 1.99% | | Commercial letters of credit | $40 | $58 | $(18) | -31.03% | | Financial guarantees and indemnification contracts | $4,503 | $4,335 | $168 | 3.87% | | Commitments to sell real estate loans | $1,424 | $1,142 | $282 | 24.70% | - The Company's maximum credit risk for recourse associated with loans sold under the Fannie Mae DUS program totaled approximately **$4.3 billion** at June 30, 2025[129](index=129&type=chunk) - The remaining liability related to the FDIC special assessment was **$108 million** at June 30, 2025, down from **$157 million** at December 31, 2024[134](index=134&type=chunk) - The range of reasonably possible losses for legal matters, beyond the existing recorded liability, was between **$0 and $25 million** at June 30, 2025[133](index=133&type=chunk) [15. Segment information](index=45&type=section&id=15.%20Segment%20information) Presents financial results for the company's reportable operating segments - The Company's reportable segments are **Commercial Bank, Retail Bank, and Institutional Services and Wealth Management**[136](index=136&type=chunk) Net Income (Loss) by Reportable Segment (Six Months Ended June 30, Dollars in millions) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commercial Bank | $462 | $406 | $56 | 13.79% | | Retail Bank | $722 | $918 | $(196) | -21.35% | | Institutional Services and Wealth Management | $249 | $272 | $(23) | -8.46% | | All Other | $(133) | $(410) | $277 | 67.56% | | **Total Net Income** | **$1,300** | **$1,186** | **$114** | **9.61%** | Total Revenue by Reportable Segment (Six Months Ended June 30, Dollars in millions) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commercial Bank | $1,438 | $1,416 | $22 | 1.55% | | Retail Bank | $2,402 | $2,562 | $(160) | -6.24% | | Institutional Services and Wealth Management | $771 | $778 | $(7) | -0.90% | | All Other | $91 | $(194) | $285 | 146.91% | | **Total Revenue** | **$4,702** | **$4,562** | **$140** | **3.07%** | [16. Relationship with BLG and Bayview Financial](index=46&type=section&id=16.%20Relationship%20with%20BLG%20and%20Bayview%20Financial) Discloses financial relationships and transactions with BLG and Bayview Financial - M&T holds a **20% minority interest in BLG**; no distributions were received from BLG for the three-month and six-month periods ended June 30, 2025[142](index=142&type=chunk) - The Company sub-services residential mortgage loans for Bayview Financial with outstanding principal balances of **$157.6 billion** at June 30, 2025, up from **$111.5 billion** at December 31, 2024[143](index=143&type=chunk) Revenues from Sub-servicing Loans for Bayview Financial (Dollars in millions) | Period | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Three Months Ended June 30 | $55 | $31 | $24 | 77.42% | | Six Months Ended June 30 | $95 | $63 | $32 | 50.79% | - The Company had various lending commitments to Bayview Financial totaling **$1.0 billion** at June 30, 2025, with **$666 million outstanding**[144](index=144&type=chunk) - Bayview Financial maintained **$3.5 billion of deposit balances** at the Company at June 30, 2025, up from **$2.2 billion** at December 31, 2024[144](index=144&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on the company's financial condition, results of operations, and key business trends [Financial Overview](index=47&type=section&id=Financial%20Overview) Summarizes key financial results and performance drivers for the recent quarter and half-year periods Summary of Financial Results (Dollars in millions, except per share) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Net income | $716 | $584 | $132 (23%) | $1,300 | $1,186 | $114 (10%) | | Diluted earnings per share | $4.24 | $3.32 | $0.92 (28%) | $7.55 | $6.76 | $0.79 (12%) | | Taxable-equivalent net interest income | $1,722 | $1,707 | $15 (1%) | $3,429 | $3,423 | $6 (0%) | | Provision for credit losses | $125 | $130 | $(5) (-4%) | $255 | $350 | $(95) (-27%) | | Other income | $683 | $611 | $72 (12%) | $1,294 | $1,164 | $130 (11%) | | Other expense | $1,336 | $1,415 | $(79) (-6%) | $2,751 | $2,693 | $58 (2%) | - QoQ increase in net interest income reflects one more calendar day of earnings and favorable impact from interest rate swap agreements, partially offset by **$20 million lower taxable-equivalent interest income** due to municipal bond amortization alignment[150](index=150&type=chunk) - QoQ increase in noninterest income driven by higher residential mortgage banking revenues and gains on sales of an out-of-footprint loan portfolio (**$15 million**) and a subsidiary (**$10 million**)[150](index=150&type=chunk) - YoY H1 increase in net interest income reflects an **8 basis-point widening** of the net interest margin[158](index=158&type=chunk) - YoY H1 decline in provision for credit losses mainly reflects **improved levels of criticized loans**[158](index=158&type=chunk) - M&T repurchased **6,073,957 shares** of common stock in Q2 2025 at a total cost of **$1.1 billion**; no share repurchases occurred in H1 2024[152](index=152&type=chunk) [Supplemental Reporting of Non-GAAP Results of Operations](index=48&type=section&id=Supplemental%20Reporting%20of%20Non-GAAP%20Results%20of%20Operations) Presents non-GAAP financial measures to provide additional insight into operating performance Supplemental Non-GAAP Results (Dollars in millions, except per share) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Net operating income | $724 | $594 | $130 (22%) | $1,318 | $1,208 | $110 (9%) | | Diluted net operating earnings per share | $4.28 | $3.38 | $0.90 (27%) | $7.66 | $6.89 | $0.77 (11%) | | Annualized return on average tangible assets | 1.44% | 1.21% | - | 1.32% | 1.20% | - | | Annualized return on average tangible common equity | 15.54% | 12.53% | - | 14.03% | 13.99% | - | | Efficiency ratio | 55.2% | 60.5% | - | 57.8% | 58.0% | - | | Tangible equity per common share (period end) | $112.48 | $111.13 | $1.35 (1%) | $112.48 | $102.42 | $10.06 (10%) | [Taxable-equivalent Net Interest Income](index=49&type=section&id=Taxable-equivalent%20Net%20Interest%20Income) Analyzes net interest income and margin, detailing the performance of earning assets and interest-bearing liabilities Taxable-equivalent Net Interest Income and Margin (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Taxable-equivalent net interest income | $1,722 | $1,707 | $15 (1%) | $3,429 | $3,423 | $6 (0%) | | Net interest margin | 3.62% | 3.66% | -4 bps | 3.64% | 3.56% | +8 bps | | Net interest spread | 2.80% | 2.82% | -2 bps | 2.80% | 2.52% | +28 bps | | Contribution of interest-free funds | 0.82% | 0.84% | -2 bps | 0.84% | 1.04% | -20 bps | - H1 2025 net interest margin widening driven by a **55 basis-point decrease** in the cost of interest-bearing liabilities, partially offset by a **27 basis-point decline** in the yield received on earning assets[161](index=161&type=chunk) Average Loans (Dollars in millions) | Loan Type | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Commercial and industrial | $61,036 | $61,056 | $(20) (0%) | $61,046 | $57,486 | $3,560 (6%) | | Commercial real estate | $25,333 | $26,259 | $(926) (-4%) | $25,794 | $32,077 | $(6,283) (-20%) | | Residential real estate | $23,684 | $23,176 | $508 (2%) | $23,431 | $23,071 | $360 (2%) | | Consumer | $25,354 | $24,353 | $1,001 (4%) | $24,856 | $21,558 | $3,298 (15%) | | **Total Average Loans** | **$135,407** | **$134,844** | **$563 (0%)** | **$135,127** | **$134,192** | **$935 (1%)** | Average Investment Securities (Dollars in millions) | Category | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Available for sale | $21,048 | $19,702 | $1,346 (7%) | $20,378 | $12,801 | $7,577 (59%) | | Held to maturity | $13,222 | $13,702 | $(480) (-4%) | $13,461 | $15,089 | $(1,628) (-11%) | | Equity and other securities | $1,065 | $1,076 | $(11) (-1%) | $1,070 | $1,251 | $(181) (-14%) | | **Total Average Investment Securities** | **$35,335** | **$34,480** | **$855 (2%)** | **$34,909** | **$29,141** | **$5,768 (20%)** | Average Deposits (Dollars in millions) | Deposit Type | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Noninterest-bearing | $45,153 | $45,436 | $(283) (-1%) | $45,294 | $48,175 | $(2,881) (-6%) | | Savings and interest-checking | $94,042 | $91,573 | $2,469 (3%) | $92,814 | $87,300 | $5,514 (6%) | | Time deposits of $250,000 or less | $10,669 | $10,489 | $180 (2%) | $10,579 | $12,196 | $(1,617) (-13%) | | Time deposits greater than $250,000 | $3,053 | $2,954 | $99 (3%) | $3,004 | $3,486 | $(482) (-14%) | | Brokered savings and interest-checking | $9,921 | $9,991 | $(70) (-1%) | $9,956 | $8,111 | $1,845 (23%) | | Brokered time deposits | $568 | $777 | $(209) (-27%) | $672 | $4,510 | $(3,838) (-85%) | | **Total Average Deposits** | **$163,406** | **$161,220** | **$2,186 (1%)** | **$162,319** | **$163,778** | **$(1,459) (-1%)** | Average Borrowings (Dollars in millions) | Category | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Short-term borrowings | $3,327 | $2,869 | $458 (16%) | $3,100 | $5,595 | $(2,495) (-45%) | | Long-term borrowings | $10,936 | $11,285 | $(349) (-3%) | $11,109 | $10,631 | $478 (4%) | | **Total Average Borrowings** | **$14,263** | **$14,154** | **$109 (1%)** | **$14,209** | **$16,226** | **$(2,017) (-12%)** | [Provision for Credit Losses](index=56&type=section&id=Provision%20for%20Credit%20Losses) Discusses the provision for credit losses in relation to net charge-offs and overall asset quality trends Provision for Credit Losses (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Provision for credit losses | $125 | $130 | $(5) (-4%) | $255 | $350 | $(95) (-27%) | | Net charge-offs (H1) | - | - | - | $222 | $275 | $(53) (-19.3%) | Nonperforming Asset and Past Due Loan Data (Dollars in millions) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | June 30, 2024 | |:---|:---|:---|:---|:---| | Nonaccrual loans | $1,573 | $1,540 | $1,690 | $2,024 | | Real estate and other foreclosed assets | $30 | $34 | $35 | $33 | | **Total nonperforming assets** | **$1,603** | **$1,574** | **$1,725** | **$2,057** | | Accruing loans past due 90 days or more | $496 | $384 | $338 | $233 | | Loans 30-89 days past due | $1,368 | $1,447 | $1,655 | $1,387 | | Nonaccrual loans as a percent of total loans | 1.16% | 1.14% | 1.25% | 1.50% | | Commercial real estate loan concentration (% of Tier 1 capital + ALLL) | 129% | 133% | 136% | 151% | - Nonaccrual loans increased **$33 million QoQ**, reflecting a **$125 million increase** in commercial and industrial nonaccrual loans, partially offset by reductions in consumer (**$50 million**) and commercial real estate (**$23 million**) nonaccrual loans[200](index=200&type=chunk) - Criticized investor-owned commercial real estate loans totaled **$4.6 billion** (19% of such loans) at June 30, 2025, improved from **$6.0 billion** (23%) at December 31, 2024[207](index=207&type=chunk) - The allowance for loan losses totaled **$2.2 billion** at June 30, 2025, representing **1.61% of loans outstanding**[229](index=229&type=chunk) - The reserve for unfunded credit commitments was **$80 million** at June 30, 2025, up from **$60 million** at December 31, 2024[229](index=229&type=chunk) [Other Income](index=69&type=section&id=Other%20Income) Details the components of noninterest income, including mortgage banking and trust income Other Income Components (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Mortgage banking revenues | $130 | $118 | $12 (11%) | $248 | $210 | $38 (18%) | | Service charges on deposit accounts | $137 | $133 | $4 (3%) | $270 | $251 | $19 (8%) | | Trust income | $182 | $177 | $5 (3%) | $359 | $330 | $29 (9%) | | Brokerage services income | $31 | $32 | $(1) (-1%) | $63 | $59 | $4 (6%) | | Trading account and other non-hedging derivative gains | $12 | $9 | $3 (33%) | $21 | $16 | $5 (30%) | | Other revenues from operations | $191 | $142 | $49 (33%) | $333 | $304 | $29 (9%) | | **Total Other Income** | **$683** | **$611** | **$72 (12%)** | **$1,294** | **$1,164** | **$130 (11%)** | - Residential mortgage loans sub-serviced for others increased to **$157.6 billion** at June 30, 2025, from **$111.5 billion** at December 31, 2024, due to a new arrangement effective February 2025[234](index=234&type=chunk)[235](index=235&type=chunk) - H1 2025 other revenues from operations include a **$15 million gain** on the sale of an out-of-footprint residential builder and developer loan portfolio and a **$10 million gain** on the sale of a subsidiary specializing in institutional services[244](index=244&type=chunk) - BLG income was **$0 for H1 2025**, compared to **$25 million in H1 2024**[242](index=242&type=chunk)[246](index=246&type=chunk) [Other Expense](index=72&type=section&id=Other%20Expense) Analyzes the components of noninterest expense, including salaries, benefits, and operational costs Other Expense Components (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Salaries and employee benefits | $813 | $887 | $(74) (-8%) | $1,700 | $1,597 | $103 (6%) | | Equipment and net occupancy | $130 | $132 | $(2) (-2%) | $262 | $254 | $8 (3%) | | Outside data processing and software | $138 | $136 | $2 (1%) | $274 | $244 | $30 (12%) | | Professional and other services | $86 | $84 | $2 (2%) | $170 | $176 | $(6) (-3%) | | FDIC assessments | $22 | $23 | $(1) (-4%) | $45 | $97 | $(52) (-53%) | | Advertising and marketing | $25 | $22 | $3 (14%) | $47 | $47 | $0 (0%) | | Amortization of core deposit and other intangible assets | $9 | $13 | $(4) (-31%) | $22 | $28 | $(6) (-21%) | | Other costs of operations | $113 | $118 | $(5) (-4%) | $231 | $250 | $(19) (-8%) | | **Total Other Expense** | **$1,336** | **$1,415** | **$(79) (-6%)** | **$2,751** | **$2,693** | **$58 (2%)** | - QoQ decrease in salaries and employee benefits reflects **seasonally higher stock-based compensation**, payroll-related taxes, and other employee benefits expense in Q1 2025[249](index=249&type=chunk) - YoY H1 decrease in FDIC assessments includes a **$34 million special assessment expense** recognized in H1 2024[252](index=252&type=chunk) - YoY H1 increase in outside data processing and software costs reflects enhancements to **technology infrastructure, cybersecurity, and financial recordkeeping systems**[252](index=252&type=chunk) [Income Taxes](index=73&type=section&id=Income%20Taxes) Explains the provision for income taxes and the effective tax rate for the reported periods Income Tax Provision and Effective Tax Rate (Dollars in millions) | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | |:---|:---|:---|:---|:---|:---|:---| | Provision for income taxes | $219 | $177 | $42 (24%) | $396 | $333 | $63 (19%) | | Effective tax rate | 23.4% | 23.2% | +0.2% | 23.3% | 21.9% | +1.4% | - H1 2024 income tax expense reflected a **$17 million net discrete tax benefit** related to the resolution of an income tax matter inherited from the acquisition of People's United[253](index=253&type=chunk) - New federal tax legislation signed on July 4, 2025, is **not expected to have a material impact** on the Company's effective tax rate[253](index=253&type=chunk) [Liquidity Risk](index=73&type=section&id=Liquidity%20Risk) Assesses the company's liquidity position, funding sources, and ability to meet obligations - Core deposits, the most significant funding source, totaled **$150.9 billion** at June 30, 2025, up from **$147.5 billion** at December 31, 2024[255](index=255&type=chunk) - Total uninsured deposits were estimated to be **$75.8 billion** at June 30, 2025, with approximately **$9.6 billion collateralized** by the Company[258](index=258&type=chunk) Available Liquidity Sources (Dollars in millions) | Source | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Deposits at the FRB of New York | $19,234 | $18,805 | $429 | 2.28% | | Unused secured borrowing facilities (FRB of New York) | $24,700 | $24,546 | $154 | 0.63% | | Unused secured borrowing facilities (FHLB of New York) | $18,063 | $17,655 | $408 | 2.31% | | Unencumbered investment securities (after estimated haircuts) | $25,845 | $24,019 | $1,826 | 7.60% | | **Total** | **$87,842** | **$85,025** | **$2,817** | **3.31%** | - M&T's parent company liquidity, inclusive of projected repayment of notes receivable from bank subsidiaries, covered projected cash outflows for **38 months** at June 30, 2025[262](index=262&type=chunk) - M&T estimates its Liquidity Coverage Ratio (LCR) on June 30, 2025, **exceeded the regulatory minimum standards** applicable to a Category III institution[264](index=264&type=chunk) [Market Risk and Interest Rate Sensitivity](index=75&type=section&id=Market%20Risk%20and%20Interest%20Rate%20Sensitivity) Evaluates exposure to market risk, primarily interest rate risk, and its potential impact on earnings and equity - The Company uses interest rate swap agreements to manage interest rate risk, with an aggregate notional amount of **$18.5 billion** currently in effect and **$14.3 billion** in forward-starting agreements at June 30, 2025[268](index=268&type=chunk)[269](index=269&type=chunk) Sensitivity of Net Interest Income to Changes in Interest Rates (Dollars in millions) | Change in Interest Rates | Calculated Increase (Decrease) in Projected Net Interest Income (June 30, 2025) | |:---|:---| | +200 basis points | $(70) | | +100 basis points | $(17) | | -100 basis points | $8 | | -200 basis points | $(1) | - M&T's cumulative upward deposit pricing beta was approximately **55%** from Q1 2022 through Q2 2024, and its cumulative downward deposit pricing beta was approximately **52%** from Q3 2024 through Q2 2025[270](index=270&type=chunk) - The percentage impact to the Economic Value of Equity (EVE) resulting from a 100 basis-point increase and decrease in market interest rates was **-4.2% and 1.4%**, respectively, at June 30, 2025[271](index=271&type=chunk) - Fair values of non-hedging derivative assets and liabilities were **$194 million and $518 million**, respectively, at June 30, 2025[274](index=274&type=chunk) [Capital](index=78&type=section&id=Capital) Reviews the company's capital position, regulatory capital ratios, and capital management activities Shareholders' Equity and Select Ratios (Dollars in millions, except per share) | Metric | June 30, 2025 | December 31, 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Total shareholders' equity | $28,525 | $29,027 | $(502) | -1.73% | | Common shareholders' equity | $26,131 | $26,633 | $(502) | -1.88% | | Tangible common shareholders' equity per share | $112.48 | $109.36 | $3.12 | 2.85% | | Shareholders' equity to total assets | 13.48% | 13.95% | -0.47% | -3.37% | | Tangible common shareholders' equity to tangible assets | 8.67% | 9.07% | -0.40% | -4.41% | - On January 22, 2025, M&T's Board of Directors authorized a **$4.0 billion common share repurchase program**, replacing the prior **$3.0 billion program**[283](index=283&type=chunk) - M&T repurchased **6,073,957 shares** of common stock in Q2 2025 at a total cost of **$1.1 billion**[283](index=283&type=chunk) Regulatory Capital Ratios (M&T Consolidated, June 30, 2025) | Ratio | Value | |:---|:---| | CET1 capital | 10.99% | | Tier 1 capital | 12.50% | | Total capital | 13.96% | | Tier 1 leverage | 9.81% | - M&T's Stress Capital Buffer (SCB) is estimated to be **2.7%** effective October 1, 2025, down from **3.8%** at June 30, 2025[284](index=284&type=chunk) - **No goodwill impairment** was identified in the Q4 2024 annual test, and no events were identified to reduce the fair value of a business reporting unit below its carrying amount at June 30, 2025[287](index=287&type=chunk) [Segment Information](index=81&type=section&id=Segment%20Information) Provides a detailed financial summary and analysis for each reportable business segment Net Income (Loss) by Reportable Segment (Six Months Ended June 30, Dollars in millions) | Segment | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Commercial Bank | $462 | $406 | $56 | 13.79% | | Retail Bank | $722 | $918 | $(196) | -21.35% | | Institutional Services and Wealth Management | $249 | $272 | $(23) | -8.46% | | All Other | $(133) | $(410) | $277 | 67.56% | | **Total Net Income** | **$1,300** | **$1,186** | **$114** | **9.61%** | [Commercial Bank Segment Financial Summary](index=81&type=section&id=Commercial%20Bank%20Segment%20Financial%20Summary) Commercial Bank Segment Highlights (Six Months Ended June 30, Dollars in millions) | Metric | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income | $462 | $406 | $56 | 13.79% | | Total revenue | $1,438 | $1,416 | $22 | 1.55% | | Provision for credit losses | $96 | $154 | $(58) | -37.66% | | Average loans | $78,084 | $80,317 | $(2,233) | -2.78% | | Average deposits | $45,738 | $43,242 | $2,496 | 5.77% | - Noninterest income increased **$63 million (20%) YoY H1**, driven by a **$15 million gain** on the sale of an out-of-footprint residential builder and developer loan portfolio and a **$14 million rise** in credit-related fees[297](index=297&type=chunk) - Average loans decreased YoY H1 primarily due to a **reduction in average commercial real estate loans**, partially offset by growth in commercial and industrial loans[297](index=297&type=chunk) [Retail Bank Segment Financial Summary](index=83&type=section&id=Retail%20Bank%20Segment%20Financial%20Summary) Retail Bank Segment Highlights (Six Months Ended June 30, Dollars in millions) | Metric | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income | $722 | $918 | $(196) | -21.35% | | Total revenue | $2,402 | $2,562 | $(160) | -6.24% | | Net interest income | $1,960 | $2,161 | $(201) | -9.30% | | Noninterest income | $442 | $401 | $41 | 10.22% | | Provision for credit losses | $150 | $128 | $22 | 17.19% | | Average loans | $52,803 | $50,325 | $2,478 | 4.92% | | Average deposits | $89,781 | $91,977 | $(2,196) | -2.39% | - YoY H1 net interest income declined due to a **45 basis-point narrowing** of the net interest margin on deposits and lower average deposit balances[302](index=302&type=chunk) - YoY H1 noninterest income increased due to **higher residential mortgage loan sub-servicing revenues** related to a new arrangement effective February 2025[302](index=302&type=chunk) - YoY H1 provision for credit losses rose due to **higher net charge-offs** of indirect consumer loans[302](index=302&type=chunk) [Institutional Services & Wealth Management Segment Financial Summary](index=85&type=section&id=Institutional%20Services%20%26%20Wealth%20Management%20Segment%20Financial%20Summary) Institutional Services & Wealth Management Segment Highlights (Six Months Ended June 30, Dollars in millions) | Metric | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net income | $249 | $272 | $(23) | -8.46% | | Total revenue | $771 | $778 | $(7) | -0.90% | | Net interest income | $337 | $380 | $(43) | -11.32% | | Noninterest income | $434 | $398 | $36 | 9.05% | | Noninterest expense | $432 | $408 | $24 | 5.88% | | Average loans | $4,015 | $3,418 | $597 | 17.47% | | Average deposits | $18,874 | $16,764 | $2,110 | 12.59% | - YoY H1 net interest income decreased predominantly due to a **96 basis-point narrowing** of the net interest margin on deposits[306](index=306&type=chunk) - YoY H1 noninterest income increased reflecting **higher sales and fund management fees** from global capital markets business and increased fee income from Wealth Management business[306](index=306&type=chunk) [All Other Category Financial Summary](index=86&type=section&id=All%20Other%20Category%20Financial%20Summary) All Other Category Highlights (Six Months Ended June 30, Dollars in millions) | Metric | 2025 | 2024 | Change (Amount) | Change (%) | |:---|:---|:---|:---|:---| | Net loss | $(133) | $(410) | $277 | 67.56% | | Net interest income (expense) | $51 | $(244) | $295 | 120.90% | | Provision for credit losses | $4 | $65 | $(61) | -93.85% | | Noninterest expense | $321 | $383 | $(62) | -16.19% | - YoY H1 net interest income increased due to **favorable internal funds transfer pricing methodologies** and lower net interest expense from interest rate swap agreements[311](index=311&type=chunk) - YoY H1 noninterest expense decreased reflecting **lower FDIC assessments** (including a $34 million special assessment in H1 2024) and lower other costs of operations[311](index=311&type=chunk) [Recent Accounting Developments](index=86&type=section&id=Recent%20Accounting%20Developments) References disclosures on significant accounting policies and recent accounting pronouncements - A discussion of the Company's significant accounting policies and critical accounting estimates can be found in **M&T's 2024 Annual Report**[310](index=310&type=chunk) - A summary of recent accounting developments is included in **note 1 of Notes to Financial Statements**[310](index=310&type=chunk) [Forward-Looking Statements](index=87&type=section&id=Forward-Looking%20Statements) Provides a cautionary statement regarding forward-looking information contained in the report - Forward-looking statements are based on **current expectations, estimates, and projections** about the Company's business, and management's beliefs and assumptions[312](index=312&type=chunk) - Important factors that could cause actual outcomes to differ materially include **economic conditions, changes in interest rates, credit losses, liquidity, regulatory changes, and market volatility**[315](index=315&type=chunk) - The Company **assumes no duty** and does not undertake to update forward-looking statements[317](index=317&type=chunk) [Quarterly Trends](index=88&type=section&id=Quarterly%20Trends) Presents key financial data and ratios for the past six quarters to highlight trends Key Quarterly Financial Trends (Dollars in millions, except per share) | Metric | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |:---|:---|:---|:---|:---|:---|:---| | Net income | $716 | $584 | $681 | $721 | $655 | $531 | | Diluted earnings per share | $4.24 | $3.32 | $3.86 | $4.02 | $3.73 | $3.02 | | Net interest margin (taxable-equivalent basis) | 3.62% | 3.66% | 3.58% | 3.62% | 3.59% | 3.52% | | Nonaccrual loans to total loans | 1.16% | 1.14% | 1.25% | 1.42% | 1.50% | 1.71% | | Average total assets | $210,261 | $208,321 | $211,853 | $209,581 | $211,981 | $211,478 | | Average deposits | $163,406 | $161,220 | $164,639 | $161,505 | $163,491 | $164,065 | [Reconciliation of Quarterly GAAP to Non-GAAP Measures](index=90&type=section&id=Reconciliation%20of%20Quarterly%20GAAP%20to%20Non-GAAP%20Measures) Provides reconciliations of GAAP financial measures to their non-GAAP counterparts Key Non-GAAP Reconciliations (Q2 2025, Dollars in millions, except per share) | Metric | GAAP | Non-GAAP | |:---|:---|:---| | Net income | $716 | $724 (Net operating income) | | Diluted earnings per common share | $4.24 | $4.28 (Diluted net operating earnings per common share) | | Other expense | $1,336 | $1,327 (Noninterest operating expense) | | Efficiency ratio | - | 55.2% | | Average assets | $210,261 | $201,733 (Average tangible assets) | | Average common equity | $26,272 | $17,744 (Average tangible common equity) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=91&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Refers to the MD&A section for detailed disclosures on market risk management and sensitivity [Item 4. Controls and Procedures](index=91&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures and discusses changes in internal controls - M&T's disclosure controls and procedures were **effective as of June 30, 2025**[326](index=326&type=chunk) - The Company has begun a multi-phase implementation of **new financial recordkeeping and reporting systems**, which will change certain processes and internal controls over financial reporting[327](index=327&type=chunk) - **No changes have been identified** during Q2 2025 that have materially affected, or are reasonably likely to materially affect, M&T's internal control over financial reporting[327](index=327&type=chunk) [Part II. Other Information](index=92&type=section&id=Part%20II.%20Other%20Information) This part includes disclosures on legal proceedings, risk factors, share repurchases, and other required information [Item 1. Legal Proceedings](index=92&type=section&id=Item%201.%20Legal%20Proceedings) Refers to the financial statement notes for information regarding legal proceedings [Item 1A. Risk Factors](index=92&type=section&id=Item%201A.%20Risk%20Factors) States there have been no material changes to the risk factors disclosed in the 2024 Annual Report [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=92&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details the company's common stock repurchase activity during the second quarter of 2025 Issuer Purchases of Equity Securities (Q2 2025, Dollars in millions, except per share) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Number of Shares as Part of Publicly Announced Programs | Maximum Approximate Dollar Value of Shares that may yet be Purchased Under the Programs | |:---|:---|:---|:---|:---| | April 1 - April 30, 2025 | 1,863,741 | $165.93 | 1,862,812 | $3,028 | | May 1 - May 31, 2025 | 3,260,089 | $182.63 | 3,257,058 | $2,434 | | June 1 - June 30, 2025 | 954,215 | $183.76 | 954,087 | $2,258 | | **Total** | **6,078,045** | **$177.69** | **6,073,957** | | - On January 22, 2025, M&T's Board of Directors authorized a program under which **$4.0 billion of common shares** may be repurchased, replacing the prior **$3.0 billion program**[331](index=331&type=chunk) [Item 3. Defaults Upon Senior Securities](index=92&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Reports no defaults upon senior securities during the period [Item 4. Mine Safety Disclosures](index=92&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Indicates that this item is not applicable to the company [Item 5. Other Information](index=92&type=section&id=Item%205.%20Other%20Information) Confirms no changes to Rule 10b5-1 trading arrangements by executives or directors - **No executive officers or directors** adopted, terminated, or modified a Rule 10b5-1 trading arrangement in the three months ended June 30, 2025[333](index=333&type=chunk) [Item 6. Exhibits](index=93&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the report, including required certifications [Signatures](index=94&type=section&id=Signatures) Contains the formal signatures authorizing the filing of the report

Core Viewpoint - M&T Bank reported strong second quarter earnings for 2025, with earnings per share (EPS) of $4.28, surpassing consensus expectations of $3.99, and revenue of $2,405 million, exceeding analyst forecasts by nearly $16 million, indicating solid profitability and effective expense management despite challenges in net interest income and capital buffer [1][5][12]. Financial Performance - EPS (Non-GAAP) for Q2 2025 was $4.28, a 12.9% increase from Q2 2024's $3.79 [2] - Revenue (Non-GAAP) reached $2,405 million, up 3.5% year-over-year from $2,323 million [2] - Noninterest income rose to $683 million, a 17.0% increase, driven by a 23% rise in residential mortgage banking and 7% growth in trust income [5][6] - Net interest income was $1,722 million, a slight decline of 0.5% from the previous year [2][6] - The efficiency ratio improved to 55.2%, indicating continued discipline in operating costs [8] Credit Quality and Risk Management - Net charge-offs decreased to 0.32% of average loans, down from 0.41% a year ago, reflecting improved credit quality [7][8] - Nonaccrual loans dropped 22% compared to the prior year, indicating better loan performance [7] - The allowance for loan losses remained stable at 1.61% of total loans, suggesting a consistent reserve for potential losses [8] Capital Management - M&T Bank repurchased 6.1 million shares for $1.1 billion, reducing the common equity tier 1 (CET1) capital ratio to 10.98%, still above regulatory minimums [9] - The stress capital buffer (SCB) will decrease from 3.8% to 2.7% starting October 1, 2025, reflecting regulatory confidence in the bank's risk profile [9] Strategic Focus - The bank's strategic priorities include regulatory compliance, capital and liquidity management, risk controls, and diversification of fee-based income [4] - Management aims to maintain strong asset quality and optimize capital allocation while focusing on community banking and personalized service [4] Future Guidance - Management affirmed guidance for net interest income between $7.05 and $7.15 billion for fiscal 2025, with an average loan balance projected between $135–$137 billion [13] - Noninterest income is expected to reach the high end of the $2.5–2.6 billion range, supported by strengths in mortgage banking and service fees [13][14] - The quarterly dividend remains steady at $1.35 per share, continuing an established payout trend [12][14]

Core Viewpoint - The signing of the GENIUS Act by President Trump is paving the way for the issuance and regulation of stablecoins in the U.S., which may disrupt traditional banking systems in the next 2 to 3 years [1][2]. Legislative Developments - The GENIUS Act establishes a preliminary framework for stablecoin issuance and regulation, while the CLARITY Act aims to clarify the jurisdiction of the SEC and CFTC over the crypto market [1]. - These legislative advancements signify a shift in focus from policy debates to the actual construction of infrastructure in the digital asset market [2]. Market Growth Projections - The stablecoin market is expected to see moderate growth of approximately $25 billion to $75 billion in the short term, which will likely increase demand for U.S. Treasury securities, particularly short-term bills [2]. Banking Sector Response - U.S. banks are preparing for the stablecoin era, with management expressing readiness to offer stablecoin solutions, although there are concerns regarding specific use cases, especially in domestic payment scenarios [3]. - Major banks like JPMorgan and Citigroup are exploring stablecoin capabilities, with JPMorgan launching its deposit token (JPMD) and Citigroup investing in digital asset services [6][7]. Cross-Border Payment Opportunities - Despite skepticism about domestic applications, bank executives see viable use cases for stablecoins in cross-border payments, with some banks viewing this as a "greenfield" market [4]. Short-Term Impact on Domestic Payments - Most banks anticipate minimal short-term impact on their core domestic payment businesses from stablecoins, although competition in cash management services may intensify [5]. Bank Comments on Stablecoins - JPMorgan is actively entering the stablecoin and digital asset space, while Bank of America acknowledges small cross-border payments as a realistic application [6]. - Citigroup is focusing on tokenized services, despite high transaction costs for converting between fiat and stablecoins [6][7]. Digital Asset Applications - Banks are exploring four main application scenarios for digital assets: reserve management and custody services for stablecoins, transaction services, issuing their own stablecoins, and tokenized deposits [7][8]. Future Outlook - Various banks, including PNC and M&T, are developing digital asset services and assessing the feasibility of stablecoins as payment mechanisms, indicating a growing interest in the sector [9].

Core Points - M&T Bank has appointed Tracy S. Woodrow as Regional President for Western New York while she continues her role as Chief Administrative Officer [1][3] - Woodrow will lead the community bank leadership team across an eight-county region, focusing on customer service, community strengthening, and employee support [2][5] - Woodrow has been with M&T Bank since 2013, previously serving as Chief Human Resources Officer and Chief Administrative Officer, overseeing significant employee-related initiatives [3][5] Company Overview - M&T Bank has been headquartered in Buffalo, New York for nearly 170 years and employs 8,000 people in the Western New York region [1][6] - The bank operates 58 branches across Erie, Niagara, Allegany, Cattaraugus, Chautauqua, Genesee, Orleans, and Wyoming counties [6] - M&T Bank is recognized as the leading U.S. Small Business Administration lender in the Buffalo District and ranks as the top commercial lender in the region [6] Community Engagement - In the previous year, M&T Bank employees contributed nearly 87,500 hours of volunteer service and the bank donated $7.6 million to local nonprofits [6] - Woodrow is actively involved in community organizations, serving on various boards and emphasizing mentorship and community improvement [4][5] Leadership Transition - Woodrow succeeds Eric Feldstein, who has served as Western New York Regional President since 2022 and will take on an expanded role leading the bank's combined retail and business banking teams [7]

Core Insights - M&T Bank Corporation reported a 27.7% increase in diluted GAAP EPS to $4.24 in Q2 2025, compared to $3.32 in Q1 2025, alongside $1.1 billion in share repurchases [1] Capital Management - The bank executed $1.1 billion in share repurchases, representing 5.7% of shares outstanding in the first half of 2025, while the CET1 ratio declined by 52 basis points to 10.98% [2] - The decline in the CET1 ratio is attributed to increased capital distributions, with a long-term target set at 10% and an operational range of 11% to 10.75% [3] Risk Management - Criticized loan balances were reduced by $1 billion (11%), with criticized CRE loans declining by $813 million, and net charge-offs remaining below full-year expectations at 32 basis points [4] - The bank's stress capital buffer (SCB) decreased from 3.8% to 2.7%, reflecting efforts to limit on-balance sheet CRE exposure and successful credit sales [5][6] Revenue Growth - Non-interest income rose to $683 million from $611 million in the prior quarter, with an 11% year-over-year growth in fee income, driven by trust and wealth revenues, mortgage subservicing, and European expansion [7][9] - Consumer and residential mortgage loans increased by $1.5 billion sequentially, with specialty lending growth in newly acquired markets contributing to franchise scale benefits [8] Future Outlook - For the full year 2025, net interest margin is expected to be in the mid to high 3.60%s, with net charge-offs forecasted below 40 basis points [10] - Capital targets remain at 10.75%–11% CET1 for the remainder of the year, with anticipated dividend actions from the Board [10]

Financial Data and Key Metrics Changes - The diluted GAAP earnings per share increased to $4.24 from $3.32 in the prior quarter, while net income was $116 million compared to $584 million in the linked quarter [8][10] - The return on assets (ROA) and return on common equity (ROCE) were reported at 1.37% and 10.39%, respectively [8] - The common equity tier 1 (CET1) ratio at the end of the second quarter was estimated at 10.98%, down from 11.5% at the end of the first quarter [21] Business Line Data and Key Metrics Changes - Average residential mortgage and consumer loans grew by $1.1 billion, reflecting a diversified business model [7] - Noninterest income increased to $683 million from $611 million in the linked quarter, with notable growth in mortgage banking and trust income [17] - The efficiency ratio improved to 55.2% from 60.5% in the prior quarter, indicating better expense management [19] Market Data and Key Metrics Changes - Average total deposits rose by $2.2 billion or 1% to $163.4 billion, with growth across most segments [12] - The yield on investment securities decreased by 19 basis points to 3.81%, primarily due to premium amortization [15] - Commercial real estate (CRE) loans declined by 4% to $25.3 billion, reflecting continued payoffs and paydowns [13] Company Strategy and Development Direction - The company remains focused on growing its New England and Long Island markets while optimizing resources through simplification and enhancing risk management capabilities [27] - The management emphasized a disciplined approach to acquisitions, indicating a preference for cultural fit and credit quality in potential targets [77] - The company aims to maintain a strong capital position while being opportunistic with share repurchases [26] Management's Comments on Operating Environment and Future Outlook - The management acknowledged potential economic slowing and risks related to tariffs and geopolitical conditions, but expressed optimism about the company's strong liquidity and capital generation [23] - The outlook for taxable equivalent net interest income is projected to be between $7 billion and $7.15 billion, reflecting continued softness in commercial and CRE loan growth [24] - The management expects net charge-offs for the full year to be less than 40 basis points, with criticized loans anticipated to continue declining [26] Other Important Information - The company executed $1.1 billion in share repurchases during the second quarter, contributing to a 1% growth in tangible book value per share [6] - The net interest margin was reported at 3.62%, a decrease of four basis points from the prior quarter, primarily due to higher costs of interest-bearing deposits [12] Q&A Session Summary Question: Loan dynamics and CRE portfolio outlook - The management indicated that the CRE pipeline continues to build, with over $5 billion currently in the pipeline, suggesting a positive outlook for growth later in the year [32] Question: Capital management and buyback strategy - The management stated that the target CET1 ratio is around 10%, but given current market uncertainties, operating in the range of 10.75% to 11% is deemed appropriate [36] Question: Fee income growth and trust business performance - The trust business has shown strong growth, driven by investments in Europe and increased demand for corporate trust services [38] Question: Consumer loan growth sustainability - The management noted that recent consumer loan growth was driven by preemptive buying ahead of price increases, but expressed optimism for continued growth in the RV and auto sectors [68] Question: Deposit competition and strategy - The management emphasized the importance of attracting operating accounts and maintaining competitive rates to grow deposits sustainably [106]

Financial Data and Key Metrics Changes - The diluted GAAP earnings per share increased to $4.24 from $3.32 in the prior quarter, while net income was $116 million compared to $584 million in the linked quarter [10] - The return on assets (ROA) and return on common equity (ROCE) were reported at 1.37% and 10.39% respectively [10] - The common equity tier 1 (CET1) ratio decreased to an estimated 10.98% from 11.5% at the end of the first quarter [22] Business Line Data and Key Metrics Changes - Average residential mortgage and consumer loans grew by $1.5 billion, reflecting a 3% sequential increase, while commercial loans remained unchanged at $61 billion [15][14] - Noninterest income rose to $683 million from $611 million in the linked quarter, with notable increases in mortgage banking and trust income [18] - Noninterest expenses decreased by $79 million to $1.34 billion, resulting in an efficiency ratio of 55.2%, down from 60.5% in the prior quarter [20] Market Data and Key Metrics Changes - Average total deposits increased by $2.2 billion or 1% to $163.4 billion, with growth across most segments [17] - The yield on investment securities decreased by 19 basis points to 3.81%, primarily due to premium amortization [16] - The net interest margin was reported at 3.62%, a decrease of four basis points from the prior quarter [13] Company Strategy and Development Direction - The company remains focused on growing its New England and Long Island markets, optimizing resources, and enhancing risk management capabilities [29] - The management emphasized a disciplined approach to acquisitions, indicating a preference for smaller, culturally aligned targets [79] - The company aims to maintain a strong capital position while being opportunistic with share repurchases [28] Management's Comments on Operating Environment and Future Outlook - The management acknowledged potential economic slowing and risks related to tariffs and geopolitical conditions, but expressed optimism about the company's positioning [24][25] - The outlook for net interest income is projected to be between $7 billion and $7.15 billion, with a net interest margin expected to average in the mid to high 360s [26] - The management expects net charge-offs for the full year to be less than 40 basis points, with criticized loans anticipated to continue declining [28] Other Important Information - The company executed $1.1 billion in share repurchases during the second quarter, while tangible book value per share grew by 1% [8] - The company reported a $1 billion or 11% reduction in commercial criticized balances, indicating improved asset quality [9] Q&A Session Summary Question: Loan dynamics and CRE portfolio - The management indicated that the CRE pipeline is building, with over $5 billion currently in the pipeline, and expressed optimism for growth towards the end of the year [32][34] Question: Capital management and buyback strategy - The management stated that the current capital range of 10.75% to 11% is appropriate given market uncertainties, and they are actively managing criticized loans [36] Question: Fee income growth and trust business - The management highlighted strong growth in the trust business, driven by new operations in Europe and increased treasury management revenues [40][41] Question: Consumer loan growth outlook - The management noted that recent consumer loan growth was driven by preemptive buying ahead of price increases, but expressed optimism for continued growth in RV and auto loans [70] Question: Deposit competition and funding costs - The management emphasized the importance of core deposits and competitive rates to attract new customers, while managing funding costs effectively [108][109]

Core Viewpoint - M&T Bank Corporation (MTB) reported better-than-expected quarterly results, with adjusted net operating earnings per share of $4.28, surpassing the Zacks Consensus Estimate of $4.04, and showing an increase from $3.79 per share in the same quarter last year [1][9]. Financial Performance - The net income available to common shareholders was $679 million, reflecting an 8.5% increase from the prior-year quarter [2]. - Quarterly revenues reached $2.40 billion, slightly exceeding the Zacks Consensus Estimate of $2.39 billion, and marking a 4.1% year-over-year increase [3]. - Net interest income (NII) declined marginally year over year to $1.72 billion, below the estimate of $1.76 billion [3]. - Total non-interest income was $683 million, up 17% year over year, driven by increases across almost all components, surpassing the estimate of $632.6 million [4]. - Total non-interest expenses rose to $1.34 billion, a 3% increase year over year, attributed to higher salaries, employee benefits, and other operational costs [4]. Efficiency and Profitability - The efficiency ratio improved to 55.2%, down from 55.3% in the previous year, indicating enhanced profitability [5]. - The return on average tangible assets and average tangible common shareholder equity were 1.44% and 15.54%, respectively, compared to 1.31% and 15.27% in the prior-year quarter [10]. Loan and Deposit Trends - Total loans increased to $136.1 billion as of June 30, 2025, up 1.1% from the prior quarter, while total deposits slightly decreased to $164.5 billion [6]. - The company’s estimates for loans and leases were $133 billion, and for deposits, $160.7 billion [6]. Credit Quality - Net charge-offs decreased by 21.2% to $108 million year over year, better than the estimate of $143 million [7]. - The provision for credit losses was $125 million, down 16.7% from the previous year, aligning closely with the estimate of $125.9 million [7]. - Non-performing assets declined 22.1% year over year to $1.60 billion, although slightly above the estimate of $1.44 billion [7]. Capital Management - M&T Bank's estimated Common Equity Tier 1 ratio was 10.98%, down from 11.45% in the second quarter of 2024 [10]. - The tangible equity per share increased to $112.48 from $102.42 in the same quarter last year [10]. - The company repurchased 6.07 million shares for $175.93 million as part of its capital plan during the second quarter of 2025 [11].