M&T Bank Corporation

10/27/2025 | Press release | Distributed by Public on 10/27/2025 15:06

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and other information included in this Quarterly Report on Form 10-Q as well as with M&T's 2024 Annual Report. Information regarding the Company's business, its supervision and regulation and potential risks and uncertainties that may affect the Company's business, financial condition, liquidity and results of operations are also included in the 2024 Annual Report.
Financial Overview
A summary of financial results for the Company is provided below:
SUMMARY OF FINANCIAL RESULTS
Three Months Ended Change Nine Months Ended Change
(Dollars in millions, except per share) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Net interest income $ 1,761 $ 1,713 $ 48 3 % $ 5,169 $ 5,124 $ 45 1 %
Taxable-equivalent adjustment (a) 12 9 3 40 33 38 (5) -14
Net interest income (taxable-equivalent basis) (a) 1,773 1,722 51 3 5,202 5,162 40 1
Provision for credit losses 125 125 - - 380 470 (90) -19
Other income 752 683 69 10 2,046 1,770 276 16
Other expense 1,363 1,336 27 2 4,114 3,996 118 3
Net income 792 716 76 11 2,092 1,907 185 10
Per common share data:
Basic earnings 4.85 4.26 .59 14 12.41 10.83 1.58 15
Diluted earnings 4.82 4.24 .58 14 12.34 10.78 1.56 14
Performance ratios, annualized
Return on:
Average assets 1.49 % 1.37 % 1.33 % 1.21 %
Average common shareholders' equity 11.45 10.39 10.07 9.47
Net interest margin 3.68 3.62 3.66 3.58
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(a)Net interest income data are presented on a taxable-equivalent basis which is a non-GAAP measure. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on a composite income tax rate of approximately 25%.
The increase in net income in the recent quarter as compared with the second quarter of 2025 resulted from the following:
•Net interest income on a taxable-equivalent basis increased $51 million reflecting an additional day of earnings, favorable earning assets and interest-bearing liabilities repricing and the impact of $20 million of lower taxable-equivalent interest income in the second quarter of 2025 resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United. Reflecting those factors the net interest margin expanded 6 basis points.
•Noninterest income increased $69 million reflecting higher residential mortgage banking revenues and a rise in other revenues from operations resulting from a $28 million distribution of an earnout payment related to the Company's 2023 sale of its CIT business, a $20 million distribution from M&T's investment in BLG and a $12 million gain on the sale of equipment leases each in the recent quarter, partially offset by gains on the sales of an out-of-footprint loan portfolio of $15 million and a subsidiary that specialized in institutional services of $10 million each in the second quarter of 2025.
•Noninterest expense increased $27 million reflecting higher severance-related expense, an impairment of a renewable energy tax-credit investment and an increase in expenses associated with M&T's supplemental executive retirement savings plan, partially offset by lower FDIC assessments.
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The increase in net income for the nine months ended September 30, 2025 as compared with the same 2024 period reflected the following:
•Net interest income on a taxable-equivalent basis increased $40 million reflecting a widening of the net interest margin by 8 basis points. The higher net interest margin reflects favorable earning assets and interest-bearing liabilities repricing that improved the Company's net interest spread, partially offset by a decline in the contribution of net interest-free funds.
•The provision for credit losses declined $90 million mainly reflecting improved levels of criticized loans.
•Noninterest income increased $276 million reflecting higher mortgage banking revenues, trust income, service charges on deposit accounts and other revenues from operations.
•Noninterest expense rose $118 million reflecting higher levels of salaries and employee benefits expense and outside data processing and software costs, partially offset by lower FDIC assessments, which included $34 million of FDIC special assessment expense in the first nine months of 2024.
The Company's effective income tax rates were 22.8% and 23.4% for the third and second quarters of 2025, respectively, and 23.1% and 21.5% for the nine months ended September 30, 2025 and 2024, respectively. Income tax expense for the first nine months of 2024 reflected $31 million of net discrete tax benefits.
Under approved capital plans and programs authorized by the Board of Directors, M&T repurchased 2.1 million shares of its common stock during the recent quarter at a total cost of $409 million, compared with 6.1 million shares at a total cost of $1.1 billion in the second quarter of 2025. During the first nine months of 2025, M&T repurchased 11.6 million shares of its common stock at a total cost of $2.2 billion, compared with 1.2 million shares at a total cost of $200 million during the first nine months of 2024.
Supplemental Reporting of Non-GAAP Results of Operations
M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains (when realized) and expenses (when incurred) associated with merging acquired operations into the Company, since such items are considered by management to be "nonoperating" in nature. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.
SUPPLEMENTAL REPORTING OF NON-GAAP RESULTS OF OPERATIONS
Three Months Ended Change Nine Months Ended Change
(Dollars in millions, except per share) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Net operating income $ 798 $ 724 $ 74 10 % $ 2,116 $ 1,939 $ 177 9 %
Diluted net operating earnings per share 4.87 4.28 .59 14 12.49 10.97 1.52 14
Annualized return on:
Average tangible assets 1.56 % 1.44 % 1.41 % 1.28 %
Average tangible common equity 17.13 15.54 15.07 14.51
Efficiency ratio 53.6 55.2 56.3 57.0
Tangible equity per common share (a) $ 115.31 $ 112.48 2.83 3 $ 115.31 $ 107.97 7.34 7
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(a)At the period end.
The efficiency ratio measures the relationship of noninterest operating expenses, which exclude expenses M&T considers to be "nonoperating" in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses, to revenues. The calculations of the Company's efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), and reconciliations of GAAP amounts with corresponding non-GAAP amounts are presented in Table 2.
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Taxable-equivalent Net Interest Income
Interest income earned on certain of the Company's assets is exempt from federal income tax. Taxable-equivalent net interest income is a non-GAAP measure that adjusts income earned on a tax-exempt asset to present it on an equivalent basis to interest income earned on a fully taxable asset.
The Company's average balance sheets accompanied by the annualized taxable-equivalent interest income and expense and the average rate on the Company's earning assets and interest-bearing liabilities are presented as follows.
AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES
Three Months Ended
September 30, 2025 June 30, 2025
(Dollars in millions) Average
Balance 		Interest Average
Rate 		Average
Balance 		Interest Average
Rate
Assets
Earning assets:
Loans (a):
Commercial and industrial $ 61,716 $ 1,004 6.45 % $ 61,036 $ 974 6.40 %
Real estate - commercial 24,353 395 6.35 25,333 404 6.31
Real estate - residential 24,359 279 4.59 23,684 268 4.52
Consumer 26,099 435 6.60 25,354 415 6.57
Total loans 136,527 2,113 6.14 135,407 2,061 6.11
Interest-bearing deposits at banks 17,739 198 4.43 19,698 219 4.47
Trading account 95 1 3.48 95 2 3.46
Investment securities (b):
U.S. Treasury 7,599 78 4.09 8,409 84 3.98
Mortgage-backed securities (c) 25,728 271 4.21 23,583 240 4.08
State and political subdivisions (d) 2,190 19 3.42 2,274 (2) -.37
Other 1,042 12 4.73 1,069 14 5.10
Total investment securities 36,559 380 4.13 35,335 336 3.81
Total earning assets 190,920 2,692 5.59 190,535 2,618 5.51
Goodwill 8,465 8,465
Core deposit and other intangible assets 79 89
Other assets 11,589 11,172
Total assets $ 211,053 $ 210,261
Liabilities and shareholders' equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and interest-checking deposits $ 104,660 $ 589 2.23 % $ 103,963 $ 579 2.24 %
Time deposits 13,990 119 3.38 14,290 123 3.45
Total interest-bearing deposits 118,650 708 2.36 118,253 702 2.38
Short-term borrowings 2,844 32 4.50 3,327 37 4.49
Long-term borrowings 12,789 179 5.59 10,936 157 5.72
Total interest-bearing liabilities 134,283 919 2.71 132,516 896 2.71
Noninterest-bearing deposits 44,056 45,153
Other liabilities 4,131 3,926
Total liabilities 182,470 181,595
Shareholders' equity 28,583 28,666
Total liabilities and shareholders' equity $ 211,053 $ 210,261
Net interest spread 2.88 2.80
Contribution of interest-free funds .80 .82
Net interest income/margin on earning assets $ 1,773 3.68 % $ 1,722 3.62 %
Memo:
Total deposits $ 162,706 $ 708 1.72 % $ 163,406 $ 702 1.72 %
__________________________________________________________________________________
(a)Includes nonaccrual loans.
(b)Includes available-for-sale securities at amortized cost.
(c)Primarily government issued or guaranteed.
(d)The yield on state and political subdivision investment securities for the three-month period ended June 30, 2025 reflects $20 million of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United.
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AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES (CONTINUED)
Nine Months Ended
September 30, 2025 September 30, 2024
(Dollars in millions) Average
Balance 		Interest Average
Rate 		Average
Balance 		Interest Average
Rate
Assets
Earning assets:
Loans (a):
Commercial and industrial $ 61,271 $ 2,936 6.41 % $ 58,256 $ 3,059 7.01 %
Real estate - commercial 25,308 1,204 6.27 31,069 1,498 6.34
Real estate - residential 23,744 804 4.51 23,045 749 4.33
Consumer 25,275 1,244 6.58 22,009 1,092 6.63
Total loans 135,598 6,188 6.10 134,379 6,398 6.36
Interest-bearing deposits at banks 19,037 635 4.46 28,467 1,167 5.48
Trading account 96 3 3.45 102 3 3.43
Investment securities (b):
U.S. Treasury 8,210 243 3.96 9,049 217 3.21
Mortgage-backed securities (c) 23,933 734 4.09 16,909 444 3.50
State and political subdivisions (d) 2,259 38 2.22 2,448 70 3.80
Other 1,064 41 5.18 1,367 58 5.74
Total investment securities 35,466 1,056 3.98 29,773 789 3.54
Total earning assets 190,197 7,882 5.54 192,721 8,357 5.79
Goodwill 8,465 8,465
Core deposit and other intangible assets 86 126
Other assets 11,141 9,696
Total assets $ 209,889 $ 211,008
Liabilities and shareholders' equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and interest-checking deposits $ 103,407 $ 1,720 2.22 % $ 96,379 $ 1,888 2.62 %
Time deposits 14,166 366 3.46 19,138 622 4.34
Total interest-bearing deposits 117,573 2,086 2.37 115,517 2,510 2.90
Short-term borrowings 3,013 101 4.50 5,071 210 5.53
Long-term borrowings 11,675 493 5.65 10,887 475 5.82
Total interest-bearing liabilities 132,261 2,680 2.71 131,475 3,195 3.24
Noninterest-bearing deposits 44,877 47,498
Other liabilities 4,003 4,202
Total liabilities 181,141 183,175
Shareholders' equity 28,748 27,833
Total liabilities and shareholders' equity $ 209,889 $ 211,008
Net interest spread 2.83 2.55
Contribution of interest-free funds .83 1.03
Net interest income/margin on earning assets $ 5,202 3.66 % $ 5,162 3.58 %
Memo:
Total deposits $ 162,450 $ 2,086 1.71 % $ 163,015 $ 2,510 2.06 %
__________________________________________________________________________________
(a)Includes nonaccrual loans.
(b)Includes available-for-sale securities at amortized cost.
(c)Primarily government issued or guaranteed.
(d)The yield on state and political subdivision investment securities for the nine-month period ended September 30, 2025 reflects $18 million of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United.
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Taxable-equivalent net interest income can be impacted by changes in the composition of the Company's earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads. The FOMC lowered its federal funds target interest rate by a total of 100 basis points in the last four months of 2024 and by 25 basis points in September 2025.
Taxable-equivalent net interest income increased $51 million in the recent quarter as compared with the second quarter of 2025 reflecting an additional day of earnings, favorable earning assets and interest-bearing liabilities repricing and the impact of $20 million of lower taxable-equivalent interest income in the second quarter of 2025 resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United. The net interest margin increased 6 basis points over that same time period. The FOMC reduction in its federal funds target interest rate in September 2025 had little impact on the Company's taxable-equivalent net interest income for the three months ended September 30, 2025.
Taxable-equivalent net interest income for the first nine months of 2025 increased $40 million as compared with the same 2024 period. That increase reflects an 8 basis-point widening of the net interest margin driven by a decrease of 53 basis points in the cost of interest-bearing liabilities, partially offset by a 25 basis-point decline in the yield received on earning assets and a 20 basis-point reduction in the contribution of net interest-free funds. Contributing to lower yields on earning assets and rates paid on interest-bearing liabilities in the first nine months of 2025 as compared with the similar 2024 period was the impact of the FOMC's cumulative 100 basis-point reduction in its federal funds target interest rate during the last four months of 2024. Partially offsetting the decline in yields received on earning assets was an increase in the yields received on investment securities from the deployment of liquidity into fixed rate investment securities from early 2024 through September 2025 that yielded higher rates than maturing investment securities.
Future changes in market interest rates or spreads, as well as changes in the composition of the Company's portfolios of earning assets and interest-bearing liabilities that result in changes to spreads, could impact the Company's net interest income and net interest margin. Future changes in the levels of net interest-free funds and the interest rates used to value such funds could also impact the Company's net interest margin.
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Interest rate swap agreements
Management assesses the potential impact of future changes in interest rates and spreads by projecting net interest income under several interest rate scenarios. In managing interest rate risk, the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its earning assets and interest-bearing liabilities. Under the terms of those interest rate swap agreements, the Company generally received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Periodic settlement amounts arising from these agreements are reflected in either the yields received on earning assets or the rates paid on interest-bearing liabilities. The Company enters into forward-starting interest rate swap agreements predominantly to hedge interest rate exposures expected in future periods. The following table summarizes information about interest rate swap agreements entered into for interest rate risk management purposes at September 30, 2025 and December 31, 2024.
INTEREST RATE SWAP AGREEMENTS - DESIGNATED AS HEDGES
Notional Amount Weighted-Average
Maturity
(In years)
Weighted-
Average Rate
(Dollars in millions)
Fixed
Variable
September 30, 2025
Fair value hedges:
Fixed rate long-term borrowings - active $ 3,350 4.5 3.33 % 4.25 %
Fixed rate long-term borrowings - forward-starting 2,750 5.8 3.84 4.27
Total fair value hedges 6,100 5.1
Cash flow hedges:
Variable rate commercial real estate and commercial and industrial loans:
Active 14,600 1.0 3.79 4.29
Forward-starting 10,400 2.3 3.46 4.27
Total cash flow hedges 25,000 1.5
Total $ 31,100 2.2
December 31, 2024
Fair value hedges:
Fixed rate long-term borrowings - active $ 2,000 5.4 3.11 % 5.07 %
Fixed rate long-term borrowings - forward-starting 3,350 6.2 3.81 4.49
Fixed rate available for sale securities - active 15 0.1 4.84 4.36
Total fair value hedges 5,365 5.8
Cash flow hedges:
Variable rate commercial real estate and commercial and industrial loans:
Active 20,819 0.9 3.26 4.47
Forward-starting 10,000 3.0 3.72 4.49
Total cash flow hedges 30,819 1.6
Total $ 36,184 2.2
Information regarding the fair value of interest rate swap agreements designated as fair value hedges and cash flow hedges is presented in note 11 of Notes to Financial Statements. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes (excluding forward-starting interest rate swap agreements not in effect during the quarter), the related effect on net interest income and margin, and the weighted-average interest rates paid or received on those swap agreements are presented in the table that follows.
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INTEREST RATE SWAP AGREEMENTS - EFFECT ON NET INTEREST INCOME
Three Months Ended
September 30, 2025 June 30, 2025
(Dollars in millions) Amount Rate (a) Amount Rate (a)
Increase (decrease) in:
Interest income $ (22) -.04 % $ (33) -.07 %
Interest expense 11 .03 11 .03
Net interest income/margin $ (33) -.07 % $ (44) -.09 %
Average notional amount (b) $ 17,744 $ 20,347
Rate received (c) 3.68 % 3.51 %
Rate paid (c) 4.41 4.37
Nine Months Ended
September 30, 2025 September 30, 2024
(Dollars in millions) Amount Rate (a) Amount Rate (a)
Increase (decrease) in:
Interest income $ (108) -.08 % $ (288) -.20 %
Interest expense 31 .03 40 .04
Net interest income/margin $ (139) -.10 % $ (328) -.23 %
Average notional amount (b) $ 20,614 $ 20,454
Rate received (c) 3.50 % 3.25 %
Rate paid (c) 4.40 5.35
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(a)Computed as an annualized percentage of average earning assets or interest-bearing liabilities.
(b)Excludes forward-starting interest rate swap agreements not in effect during the period.
(c)Weighted-average rate paid or received on interest rate swap agreements in effect during the period.
Lending activities
The Company's lending activities reflect a shift in portfolio composition as the Company executed various strategies to lessen its relative concentration of commercial real estate loans throughout 2024 and to reduce the amount of criticized loans in this category through 2025. The following table summarizes changes in the components of average loans.
AVERAGE LOANS
Three Months Ended Nine Months Ended
(Dollars in millions) September 30, 2025 June 30,
2025 		Percentage Change September 30, 2025 September 30, 2024
Percentage Change
Commercial and industrial $ 61,716 $ 61,036 1 % $ 61,271 $ 58,256 5 %
Real estate - commercial 24,353 25,333 -4 25,308 31,069 -19
Real estate - residential 24,359 23,684 3 23,744 23,045 3
Consumer:
Home equity lines and loans 4,674 4,598 2 4,613 4,571 1
Recreational finance 13,958 13,295 5 13,317 10,949 22
Automobile 5,235 5,225 - 5,120 4,408 16
Other 2,232 2,236 - 2,225 2,081 7
Total consumer 26,099 25,354 3 25,275 22,009 15
Total $ 136,527 $ 135,407 1 % $ 135,598 $ 134,379 1 %
Average loans totaled $136.5 billion in the third quarter of 2025, up $1.1 billion from the second quarter of 2025.
•Average commercial and industrial loans grew $680 million reflecting growth in loans to the financial and insurance industry. Loans to that industry include credit facilities to investment funds, mortgage lenders, real estate investment trusts and corporate and institutional borrowers.
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•Commercial real estate loans decreased $980 million, reflecting a reduction of $1.1 billion of average construction commercial real estate loans, partially offset by a modest increase of average permanent commercial real estate loans. Contributing to the decline in average commercial real estate construction loans were payoffs and the full quarter impact of the sale of $661 million of out-of-footprint residential builder and developer loans in June 2025.
•Average residential real estate loans increased $675 million reflecting the retention of originated residential mortgage loans and purchases.
•Average consumer loans increased $745 million reflecting higher average balances of recreational finance loans of $663 million and home equity loans and lines of credit of $76 million.
In the first nine months of 2025, average loans increased $1.2 billion from the corresponding 2024 period.
•Average commercial and industrial loans increased $3.0 billion reflecting higher average balances of loans to financial and insurance companies and motor vehicle and recreational finance dealers.
•Average commercial real estate loans declined $5.8 billion as the Company executed various strategies to reduce its relative concentration of such loans. Average permanent and construction commercial real estate loans decreased by $3.8 billion and $1.9 billion, respectively.
•Average residential real estate loans grew $699 million reflecting the retention of originated residential mortgage loans and purchases.
•Average consumer loans increased $3.3 billion reflecting recreational finance and automobile average loan growth of $2.4 billion and $712 million, respectively.
Investing activities
The Company's investment securities portfolio is largely comprised of government-issued or guaranteed residential and commercial mortgage-backed securities and U.S. Treasury securities, but also includes municipal and other securities. When purchasing investment securities, the Company considers its liquidity position and its overall interest rate risk profile as well as the adequacy of expected returns relative to risks assumed, including prepayments. The Company may occasionally sell investment securities as a result of movements in interest rates and spreads, changes in liquidity needs, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio. The amounts of investment securities held by the Company are influenced by such factors as available yield in comparison with alternative investments, demand for loans, which generally yield more than investment securities, ongoing repayments, the levels of deposits, and management of liquidity and balance sheet size and resulting capital ratios. Information about the Company's average investment securities portfolio is presented in the following table.
AVERAGE INVESTMENT SECURITIES
Three Months Ended Nine Months Ended
(Dollars in millions) September 30,
2025 		June 30,
2025 		Percentage Change September 30,
2025 		September 30,
2024 		Percentage Change
Investment securities available for sale:
U.S. Treasury $ 7,155 $ 7,966 -10 % $ 7,702 $ 8,040 -4 %
Mortgage-backed securities (a) 15,481 13,079 18 13,435 5,419 148
Other debt securities 2 3 -32 3 144 -98
Total available for sale 22,638 21,048 8 21,140 13,603 55
Investment securities held to maturity:
U.S. Treasury 444 443 - 508 1,009 -50
Mortgage-backed securities (a) 10,247 10,504 -2 10,498 11,490 -9
State and political subdivisions 2,190 2,274 -4 2,259 2,448 -8
Other debt securities 1 1 -3 1 1 -13
Total held to maturity 12,882 13,222 -3 13,266 14,948 -11
Equity and other securities 1,039 1,065 -2 1,060 1,222 -13
Total investment securities $ 36,559 $ 35,335 3 % $ 35,466 $ 29,773 19 %
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(a)Primarily government issued or guaranteed.
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The investment securities portfolio averaged $36.6 billion in the third quarter of 2025, up $1.2 billion from the second quarter of 2025, and $35.5 billion for the nine months ended September 30, 2025, an increase of $5.7 billion from the similar 2024 period. Those increases reflect the deployment of liquidity into primarily fixed rate mortgage-backed investment securities classified in the Company's available-for-sale investment securities portfolio. As a result of the purchases of higher-yielding securities and the maturities of lower-yielding securities, the weighted-average current yield for total investment securities available for sale increased to 4.65% at September 30, 2025 and 4.50% at June 30, 2025 as compared with 4.08% at September 30, 2024. The weighted-average duration of the available-for-sale investment securities portfolio was 2.5 years at September 30, 2025 as compared with 2.6 years and 2.3 years at June 30, 2025 and September 30, 2024, respectively. The Company routinely adjusts its holdings of capital stock of the FHLB of New York and the FRB of New York based on amounts of outstanding borrowings and available lines of credit with those entities.
The Company regularly reviews its debt investment securities for declines in value below amortized cost that might be indicative of credit-related losses. There were no credit-related losses on debt investment securities recognized in each of the nine months ended September 30, 2025 and 2024. A further discussion of fair values of investment securities is included herein under the heading "Capital." Additional information about the investment securities portfolio is included in notes 3 and 13 of Notes to Financial Statements.
Other earning assets include interest-bearing deposits at banks and trading account assets. Those other earning assets in the aggregate averaged $17.8 billion and $19.8 billion for the three-month periods ended September 30, 2025 and June 30, 2025, respectively, and $19.1 billion and $28.6 billion for the nine months ended September 30, 2025 and 2024, respectively. The amounts of other earning assets at those respective dates were primarily comprised of deposits held at the FRB of New York. In general, the levels of those deposits often fluctuate due to changes in deposits of retail and commercial customers, trust-related deposits, brokered deposits and additions to or maturities of investment securities or borrowings.
Funding activities - deposits
The most significant source of funding for the Company is core deposits. The Company considers noninterest-bearing deposits, savings and interest-checking deposits and time deposits of $250,000 or less as core deposits. The Company's branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Average core deposits represented 78% and 79% of average earning assets for the quarters ended September 30, 2025 and June 30, 2025, respectively, and 78% and 77% for the nine months ended September 30, 2025 and 2024, respectively. The Company also includes brokered deposits as a component of its wholesale funding strategy. Depending on market conditions, including demand by customers and other investors, and the cost of funds available from alternative sources, the Company may change the amount or composition of brokered deposits in the future. The following table provides an analysis of changes in the components of average deposits.
AVERAGE DEPOSITS
Three Months Ended Nine Months Ended
(Dollars in millions) September 30, 2025 June 30, 2025 Percentage Change September 30, 2025 September 30, 2024 Percentage Change
Noninterest-bearing deposits $ 44,056 $ 45,153 -2 % $ 44,877 $ 47,498 -6 %
Savings and interest-checking deposits 94,452 94,042 - 93,366 88,026 6
Time deposits of $250,000 or less 10,503 10,669 -2 10,554 12,029 -12
Total core deposits 149,011 149,864 -1 148,797 147,553 1
Time deposits greater than $250,000 3,001 3,053 -2 3,003 3,404 -12
Brokered savings and interest-checking deposits 10,208 9,921 3 10,041 8,353 20
Brokered time deposits 486 568 -14 609 3,705 -84
Total deposits $ 162,706 $ 163,406 - % $ 162,450 $ 163,015 - %
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Total deposits averaged $162.7 billion in the recent quarter, down $700 million from the second quarter of 2025.
•Average core deposits decreased $853 million reflecting lower noninterest-bearing deposits largely driven by a single commercial customer, partially offset by higher average savings and interest-checking deposits.
•Average brokered deposits increased $205 million reflecting an increase in brokered savings and interest-checking deposits, partially offset by maturities of brokered time deposits.
In the first nine months of 2025, total average deposits decreased $565 million from the corresponding 2024 period.
•Average core deposits grew $1.2 billion due to higher average balances of savings and interest-checking deposits that reflected a shift in customer funds from noninterest-bearing accounts to interest-bearing products. Lower average balances of core time deposits reflected comparatively lower rates paid on those products.
•Average brokered deposits declined $1.4 billion reflecting a decrease in average brokered time deposits of $3.1 billion as those products matured. That decrease was partially offset by an increase in average brokered savings and interest-bearing transaction accounts of $1.7 billion reflecting changes in the Company's wholesale funding strategy.
The accompanying table summarizes the components of average total deposits by reportable segment for the three months ended September 30, 2025 and June 30, 2025 and the nine months ended September 30, 2025 and 2024.
AVERAGE DEPOSITS BY REPORTABLE SEGMENT
(Dollars in millions) Commercial Bank Retail Bank Institutional Services and Wealth Management All Other Total
Three Months Ended September 30, 2025
Noninterest-bearing deposits $ 10,280 $ 24,356 $ 8,772 $ 648 $ 44,056
Savings and interest-checking deposits 35,396 52,987 9,726 6,551 104,660
Time deposits 353 13,100 48 489 13,990
Total $ 46,029 $ 90,443 $ 18,546 $ 7,688 $ 162,706
Three Months Ended June 30, 2025
Noninterest-bearing deposits $ 11,337 $ 24,449 $ 8,868 $ 499 $ 45,153
Savings and interest-checking deposits 34,310 52,836 10,268 6,549 103,963
Time deposits 348 13,329 43 570 14,290
Total $ 45,995 $ 90,614 $ 19,179 $ 7,618 $ 163,406
Nine Months Ended September 30, 2025
Noninterest-bearing deposits $ 10,970 $ 24,342 $ 9,001 $ 564 $ 44,877
Savings and interest-checking deposits 34,510 52,508 9,719 6,670 103,407
Time deposits 356 13,154 44 612 14,166
Total $ 45,836 $ 90,004 $ 18,764 $ 7,846 $ 162,450
Nine Months Ended September 30, 2024
Noninterest-bearing deposits $ 12,648 $ 25,055 $ 9,094 $ 701 $ 47,498
Savings and interest-checking deposits 30,532 51,553 7,769 6,525 96,379
Time deposits 375 15,012 40 3,711 19,138
Total $ 43,555 $ 91,620 $ 16,903 $ 10,937 $ 163,015
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Funding activities - borrowings
The following table summarizes the average balances utilized from the Company's short-term and long-term borrowing facilities and note programs.
AVERAGE BORROWINGS
Three Months Ended Nine Months Ended
(Dollars in millions) September 30,
2025 		June 30,
2025 		September 30,
2025 		September 30,
2024
Short-term borrowings:
Federal funds purchased and repurchase agreements $ 83 $ 199 $ 122 $ 272
FHLB advances 2,761 3,128 2,891 4,799
Total short-term borrowings 2,844 3,327 3,013 5,071
Long-term borrowings:
Senior notes 9,332 8,066 8,515 6,866
FHLB advances 3 4 224 1,778
Subordinated notes 1,012 500 672 862
Junior subordinated debentures 400 402 404 541
Asset-backed notes 2,032 1,954 1,850 830
Other 10 10 10 10
Total long-term borrowings 12,789 10,936 11,675 10,887
Total borrowings $ 15,633 $ 14,263 $ 14,688 $ 15,958
The Company uses borrowing capacity from banks, the FHLBs, the FRB of New York and others as sources of funding. Short-term borrowings represent arrangements that at the time they were entered into had a contractual maturity of one year or less. Average short-term borrowings in the third quarter of 2025 as compared with the second quarter of 2025, as well as for the nine months ended September 30, 2025 as compared with the similar 2024 period, were lower as a result of the Company's management of liquidity, including reductions in certain short-term wholesale funding sources.
The levels of long-term borrowings reflect the Company's strategies to diversify its wholesale funding sources to provide long-term funding stabilization and prepare for proposed regulations enumerating certain long-term debt requirements as described in Part I, Item 1, "Resolution Planning and Resolution-Related Requirements" of M&T's 2024 Annual Report. The following table provides a summary of the Company's issuances, maturities and redemptions of long-term borrowings for the three-month and nine-month periods ended September 30, 2025.
LONG-TERM BORROWING ISSUANCES, MATURITIES AND REDEMPTIONS
(Dollars in millions) Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025
Issuances (a):
Senior notes of M&T $ - $ 750
Senior notes of M&T Bank - 750
Subordinated notes of M&T 750 750
Asset-backed notes - 1,296
Maturities/Redemptions (b):
FHLB advances 1 2,001
Senior notes of M&T Bank - 750
Junior subordinated debentures of M&T associated with Preferred Capital Securities - 34
__________________________________________________________________________________
(a)At par value.
(b)Excludes paydowns of asset-backed notes.
Additional information regarding borrowings is provided in notes 5 and 12 of Notes to Financial Statements.
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Provision for Credit Losses
A provision for credit losses is recorded to adjust the level of the allowance to reflect expected credit losses that are based on economic forecasts as of each reporting date. A provision for credit losses of $125 million was recorded in each of the third and second quarters of 2025. The provision for credit losses included $15 million and $20 million of provision for unfunded credit commitments in the third and second quarters of 2025, respectively. For the nine months ended September 30, 2025 and 2024, the Company recorded a provision for credit losses of $380 million and $470 million, respectively. The lower provision for credit losses in the first nine months of 2025 as compared with the similar 2024 period reflects improved credit performance of commercial real estate loans, partially offset by consumer loan growth.
A summary of the Company's net loan charge-offs by loan type and as an annualized percent of such average loans is presented in the table that follows.
NET CHARGE-OFF (RECOVERY) INFORMATION
Three Months Ended
September 30, 2025 June 30, 2025
(Dollars in millions) Net Charge-Offs (Recoveries) Annualized Percent of Average Loans Net Charge-Offs (Recoveries) Annualized Percent of Average Loans
Commercial and industrial $ 72 .46 % $ 38 .24 %
Real estate:
Commercial 17 .33 21 .41
Residential builder and developer - - - -
Other commercial construction 4 .39 2 .19
Residential - - - .02
Consumer:
Home equity lines and loans - - (1) -.11
Recreational finance 24 .69 21 .62
Automobile 6 .46 3 .26
Other 23 4.07 24 4.34
Total $ 146 .42 % $ 108 .32 %
Nine Months Ended
September 30, 2025 September 30, 2024
(Dollars in millions) Net Charge-Offs (Recoveries) Annualized Percent of Average Loans Net Charge-Offs (Recoveries) Annualized Percent of Average Loans
Commercial and industrial $ 139 .30 % $ 193 .44 %
Real estate:
Commercial 57 .38 54 .30
Residential builder and developer - - - -
Other commercial construction 6 .19 11 .24
Residential - - - -
Consumer:
Home equity lines and loans (1) -.04 - -
Recreational finance 76 .76 58 .70
Automobile 16 .41 10 .33
Other 75 4.53 69 4.45
Total $ 368 .36 % $ 395 .39 %
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Asset quality
A summary of nonperforming assets and certain past due loan data and credit quality ratios is presented in the accompanying table.
NONPERFORMING ASSET AND PAST DUE LOAN DATA
(Dollars in millions) September 30, 2025 June 30, 2025 December 31, 2024 September 30, 2024
Nonaccrual loans $ 1,512 $ 1,573 $ 1,690 $ 1,926
Real estate and other foreclosed assets 37 30 35 37
Total nonperforming assets $ 1,549 $ 1,603 $ 1,725 $ 1,963
Accruing loans past due 90 days or more (a) $ 432 $ 496 $ 338 $ 288
Government-guaranteed loans included in totals above:
Nonaccrual loans $ 71 $ 75 $ 69 $ 69
Accruing loans past due 90 days or more (a) 403 450 318 269
Loans 30-89 days past due 1,200 1,368 1,655 1,506
Nonaccrual loans as a percent of total loans 1.10 % 1.16 % 1.25 % 1.42 %
Nonperforming assets as a percent of total loans and
real estate and other foreclosed assets 		1.13 1.18 1.27 1.44
Accruing loans past due 90 days or more as a percent
of total loans 		.32 .36 .25 .21
Loans 30-89 days past due as a percent of total loans .88 1.00 1.22 1.11
__________________________________________________________________________________
(a)Predominantly government-guaranteed residential real estate loans.
Nonaccrual loans decreased $61 million from June 30, 2025 to September 30, 2025 reflecting modest declines in commercial and industrial, commercial real estate and residential real estate nonaccrual loans. As compared with December 31, 2024, the $178 million decline in nonaccrual loans at September 30, 2025 reflects a $154 million, $59 million and $29 million reduction in commercial real estate, consumer and residential real estate nonaccrual loans, respectively. Partially offsetting those declines was a $64 million increase in commercial and industrial nonaccrual loans. Approximately 37% of commercial and industrial and commercial real estate nonaccrual loans were considered current with respect to their payment status at September 30, 2025.
Government-guaranteed loans designated as accruing loans past due 90 days or more included one-to-four family residential mortgage loans serviced by the Company that were repurchased to reduce associated servicing costs, including a requirement to advance principal and interest payments that had not been received from individual mortgagors. Despite the loans being purchased by the Company, the insurance or guarantee by the applicable government-related entity remains in force. The outstanding principal balances of the repurchased loans that are guaranteed by government-related entities included in accruing loans past due 90 days or more totaled $333 million at September 30, 2025, $377 million at June 30, 2025, $224 million at December 31, 2024 and $204 million at September 30, 2024. Accruing loans past due 90 days or more not guaranteed by government-related entities were loans considered to be with creditworthy borrowers that were in the process of collection or renewal.
Approximately 72% of loans 30 to 89 days past due were less than 60 days delinquent at September 30, 2025, compared with 70% at June 30, 2025 and 73% at December 31, 2024. Additional information about past due and nonaccrual loans at September 30, 2025 and December 31, 2024 is included in note 4 of Notes to Financial Statements.
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The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. Loans with a lower expectation of default are assigned one of ten possible "pass" loan grades while loans determined to have an elevated level of credit risk are designated as "criticized." A criticized loan may be designated as "nonaccrual" if the Company no longer expects to collect all amounts owed under the terms of the loan agreement or the loan is delinquent 90 days or more. During 2025, the Company assessed loans to certain not-for-profit borrowers, government contractors and other commercial borrowers that may be impacted by immigration policies and enforcement, changes to government funding and reductions in the federal workforce. The Company is also monitoring commercial borrowers in certain industry sectors that may be impacted by international trade policy changes, such as tariffs, including retail and wholesale trade, manufacturing and construction companies. The Company has considered the information gathered in such reviews in its assignment of loan grades.
The Company continues to monitor its commercial real estate loan portfolio. The primary source of repayment of these loans is typically tenant lease payments to the investor/borrower. Elevated vacancies impacting some property types and higher interest rates have contributed to lower current and anticipated future debt service coverage ratios, which have and may continue to influence the ability of borrowers to make existing loan payments. Lower debt service coverage ratios and reduced commercial real estate values also impact the ability of borrowers, in particular those borrowers with loans secured by office properties, to refinance their obligations at loan maturity. Despite these challenges, the ability of borrowers to service loans secured by investor-owned real estate has generally improved in recent quarters. The LTV ratio is one of many factors considered in assessing overall portfolio risks and loss mitigation strategies for the investor-owned commercial real estate portfolio. In determining the LTV ratio, the Company considers cross-collateralization of all exposures secured by the supporting collateral and the estimated value of such collateral. Subsequent to the origination of commercial real estate loans, updated appraisals are obtained in the normal course of business for renewals, extensions and modifications to commitment levels. 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 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.
The Company monitors its concentration of commercial real estate lending as a percent of its Tier 1 capital plus its allowable allowance for credit losses, consistent with a metric utilized to differentiate such concentrations amongst regulated financial institutions. This metric, as prescribed in supervisory guidance, excludes loans secured by commercial real estate considered to be owner-occupied, but includes certain other loans, such as loans to real estate investment trusts, that are classified as commercial and industrial loans. The Company's commercial real estate loan concentration approximated 128% of Tier 1 capital plus its allowable allowance for credit losses at September 30, 2025, compared with 129% at June 30, 2025, 136% at December 31, 2024 and 148% at September 30, 2024. The Company executed various strategies to lessen its relative concentration of investor-owned commercial real estate loans throughout 2024 and to reduce criticized loans in this category through 2025.
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The accompanying tables summarize the outstanding balances, and associated criticized balances, of commercial and industrial loans by industry and commercial real estate loans by property type, respectively, at September 30, 2025 and December 31, 2024.
CRITICIZED COMMERCIAL AND INDUSTRIAL LOANS
September 30, 2025 December 31, 2024
(Dollars in millions) Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized
Commercial and industrial excluding
owner-occupied real estate by industry:
Financial and insurance (a) $ 12,084 $ 164 $ 24 $ 188 $ 11,479 $ 71 $ 35 $ 106
Services 7,689 225 104 329 7,409 247 112 359
Motor vehicle and recreational
finance dealers 		6,637 508 96 604 7,229 527 38 565
Manufacturing 6,241 331 75 406 6,077 394 116 510
Wholesale 4,246 319 78 397 4,057 334 28 362
Transportation, communications,
utilities 		3,755 185 65 250 3,567 286 62 348
Retail 3,114 178 20 198 3,097 66 17 83
Construction 2,206 192 36 228 2,143 155 44 199
Health services 1,780 51 29 80 1,892 207 36 243
Real estate investors 1,506 180 14 194 1,751 148 8 156
Other 1,568 98 49 147 1,773 109 39 148
Total commercial and industrial
excluding owner-occupied real estate 		$ 50,826 $ 2,431 $ 590 $ 3,021 $ 50,474 $ 2,544 $ 535 $ 3,079
Owner-occupied real estate by industry:
Services $ 2,308 $ 120 $ 33 $ 153 $ 2,345 $ 153 $ 26 $ 179
Motor vehicle and recreational
finance dealers 		2,162 173 23 196 2,236 31 8 39
Retail 1,825 42 10 52 1,677 69 16 85
Health services 1,320 119 60 179 1,330 156 66 222
Wholesale 975 98 5 103 857 62 3 65
Manufacturing 783 79 14 93 809 73 24 97
Real estate investors 634 25 8 33 702 43 6 49
Other 1,054 46 17 63 1,051 54 12 66
Total owner-occupied real estate 11,061 702 170 872 11,007 641 161 802
Total $ 61,887 $ 3,133 $ 760 $ 3,893 $ 61,481 $ 3,185 $ 696 $ 3,881
Criticized loans as a percent of total commercial and industrial loans 6.3 % 6.3 %
__________________________________________________________________________________
(a)Loans to the financial and insurance industry include credit facilities to investment funds, mortgage lenders, real estate investment trusts and corporate and institutional borrowers. Approximately 93% and 87% of outstanding financial and insurance loans were designated as loans to nondepository financial institutions as prescribed in regulatory guidance for the Company's consolidated financial report for bank holding companies at September 30, 2025 and December 31, 2024, respectively.
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CRITICIZED COMMERCIAL REAL ESTATE LOANS
September 30, 2025 December 31, 2024
(Dollars in millions) Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized
Permanent finance by property type:
Apartments/Multifamily $ 6,548 $ 479 $ 65 $ 544 $ 5,628 $ 935 $ 114 $ 1,049
Retail/Service 4,320 659 76 735 4,747 673 80 753
Office 3,487 642 110 752 4,170 1,125 117 1,242
Industrial/Warehouse 2,175 79 10 89 1,926 143 13 156
Hotel 1,776 196 67 263 1,984 317 118 435
Health services 1,554 239 32 271 2,038 560 25 585
Other 202 30 1 31 287 30 1 31
Total permanent 20,062 2,324 361 2,685 20,780 3,783 468 4,251
Construction/Development 3,984 1,177 21 1,198 5,984 1,715 68 1,783
Total $ 24,046 $ 3,501 $ 382 $ 3,883 $ 26,764 $ 5,498 $ 536 $ 6,034
Criticized loans as a percent of total commercial real estate loans 16.2 % 22.6 %
Commercial real estate loans weighted-average LTV ratio 56 56
Commercial real estate criticized loans weighted-average LTV ratio 66 63
Loans to financial and insurance companies, motor vehicle and recreational finance dealers and the retail industry contributed to the modest increase in commercial and industrial criticized loans from December 31, 2024 to September 30, 2025, partially offset by lower criticized loans to the health services, manufacturing and transportation, communications and utilities industries. The $2.2 billion decline in commercial real estate criticized loans from December 31, 2024 to September 30, 2025 spanned most property types and also reflected lower criticized construction and development loans. At September 30, 2025, approximately 96% of criticized accrual loans and 37% of criticized nonaccrual loans were considered current with respect to their payment status.
For loans secured by residential real estate, the Company's loss identification and estimation techniques make reference to loan performance and house price data in specific areas of the country where collateral securing those loans is located. For residential real estate-related loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. Information about the location of nonaccrual loans secured by residential real estate at September 30, 2025 is presented in the following table.
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NONACCRUAL LOANS SECURED BY RESIDENTIAL REAL ESTATE
September 30, 2025
Nonaccrual
(Dollars in millions) Outstanding Balances Balances Percent of Outstanding Balances
Residential mortgage loans (a):
New York $ 6,896 $ 101 1.46 %
Mid-Atlantic (b) 7,775 79 1.02
New England (c) 6,536 42 .64
Other 3,455 28 .80
Total $ 24,662 $ 250 1.01 %
First lien home equity loans and lines of credit:
New York $ 744 $ 14 1.92 %
Mid-Atlantic (b) 878 16 1.81
New England (c) 423 4 1.03
Other 23 3 11.94
Total $ 2,068 $ 37 1.80 %
Junior lien home equity loans and lines of credit:
New York $ 895 $ 17 1.84 %
Mid-Atlantic (b) 1,080 17 1.56
New England (c) 657 6 .87
Other 30 - .81
Total $ 2,662 $ 40 1.48 %
__________________________________________________________________________________
(a)Includes $697 million of limited documentation first lien mortgage loans with nonaccrual loan balances totaling $48 million.
(b)Includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia and the District of Columbia.
(c)Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
Factors that influence the Company's credit loss experience include overall economic conditions affecting businesses and consumers, generally, but also residential and commercial real estate valuations, in particular, given the size of the Company's real estate loan portfolios. Commercial real estate valuations can be highly subjective, as they are based upon many assumptions. Such valuations can be significantly affected over relatively short periods of time by changes in business climate, economic conditions, interest rates and, in many cases, the results of operations of businesses and other occupants of the real property. Similarly, residential real estate valuations can be impacted by housing trends, the availability of financing at reasonable interest rates and general economic conditions affecting consumers.
Consumer loans not secured by residential real estate are generally charged-off when the loans are 91 to 180 days past due, depending on whether the loan is collateralized and the status of repossession activities with respect to such collateral. A comparative summary of consumer loans in nonaccrual status by product is presented in the following table.
NONACCRUAL CONSUMER LOANS
September 30, 2025 December 31, 2024
(Dollars in millions) Nonaccrual Loans Percent of Outstanding Balances Nonaccrual Loans Percent of Outstanding Balances
Home equity lines and loans $ 77 1.62 % $ 81 1.77 %
Recreational finance 29 .21 31 .25
Automobile 10 .18 12 .25
Other 4 .20 55 2.49
Total $ 120 .46 % $ 179 .74 %
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Allowance for loan losses
Management determines the allowance for loan losses under accounting guidance that requires estimating the amount of current expected credit losses over the remaining contractual term of the loan portfolio. A description of the methodologies used by the Company to estimate its allowance for loan losses can be found in note 4 of Notes to Financial Statements.
In establishing the allowance for loan losses, the Company estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes and also estimates losses for other loans with similar risk characteristics on a collective basis. For purposes of determining the level of the allowance for loan losses, the Company evaluates its portfolio by loan type. At the time of the Company's analysis regarding the determination of the allowance for loan losses as of September 30, 2025 concerns existed about the impact of potential inflationary pressures and increases in unemployment on the discretionary income and purchasing power of consumers, which could impact their ability to service existing debt obligations; slower economic growth in future quarters; the volatile nature of global markets and international economic conditions that could impact the U.S. economy, including the effect of international trade policies on domestic businesses and consumers; uncertainty related to Federal Reserve positioning of monetary policy; the potential for a prolonged period of U.S. federal government shutdown; downward pressures on commercial real estate values, especially in the office sector; the persistence of elevated interest rates impacting the ability of commercial borrowers to refinance maturing debt obligations; and the extent to which borrowers may be negatively affected by general economic conditions.
The Company generally estimates current expected credit losses on loans with similar risk characteristics on a collective basis. To estimate expected losses, the Company utilizes statistically developed models to project principal balances over the remaining contractual lives of the loan portfolios and determine estimated credit losses through a reasonable and supportable forecast period. The Company's approach for estimating current expected credit losses for loans at each reporting date included utilizing macroeconomic assumptions to project losses over a two-year reasonable and supportable forecast period. Subsequent to the forecast period, the Company reverted to longer-term historical loss experience, over a period of one year, to estimate expected credit losses over the remaining contractual life. 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 economic forecasts, geopolitical conditions and other risk factors that influence the loss estimation process. At each of September 30, 2025, June 30, 2025 and December 31, 2024, the Company qualitatively adjusted credit loss estimates for inherent limitations in the ability to assess real-time changes in commercial borrower performance and for environmental influences affecting certain loan portfolios. Qualitative adjustments, primarily related to portfolio exposures to certain commercial and industrial borrowers and commercial real estate loans, were modestly lower at September 30, 2025 as compared with June 30, 2025 and December 31, 2024.
Forward-looking estimates of certain macroeconomic variables are determined by the M&T Scenario Review Committee, which is comprised of senior management business leaders and economists. The weighted-average of macroeconomic assumptions utilized as of September 30, 2025, June 30, 2025 and December 31, 2024 are presented in the following table and were based on information available at or near the time the Company was preparing its estimate of expected credit losses as of those dates.
ALLOWANCE FOR LOAN LOSSES MACROECONOMIC ASSUMPTIONS
September 30, 2025 June 30, 2025 December 31, 2024
Year 1 Year 2 Cumulative Year 1 Year 2 Cumulative Year 1 Year 2 Cumulative
National unemployment rate 4.9 % 5.2 % 4.8 % 5.3 % 4.5 % 4.7 %
Real GDP growth rate 1.0 1.7 2.8 % .8 1.8 2.6 % 1.3 1.7 3.0 %
Commercial real estate price
index growth/decline rate 		-3.6 .7 -2.7 -2.5 -.4 -2.7 -2.9 1.4 -1.4
Home price index growth/
decline rate 		-.1 2.3 2.2 -.2 2.1 1.9 -.1 2.4 2.3
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With respect to economic forecasts, the Company assessed the likelihood of alternative economic scenarios during the two-year reasonable and supportable forecast period. Generally, an increase in unemployment rate or a decrease in any of the rate of change in GDP, commercial real estate prices or home prices could have an adverse impact on expected credit losses and may result in an increase to the allowance for loan losses. Forward-looking economic forecasts are subject to inherent imprecision and future outcomes may differ materially from forecasted events. In consideration of such uncertainty, the following alternative economic scenarios were considered to estimate the possible impact on modeled credit losses.
ALLOWANCE FOR LOAN LOSSES SENSITIVITIES
September 30, 2025 Year 1 Year 2 Cumulative
Potential downside economic scenario:
National unemployment rate 7.1 % 8.1 %
Real GDP growth/decline rate -2.5 1.3 -1.1 %
Commercial real estate price index decline rate -15.5 -6.6 -21.1
Home price index growth/decline rate -9.0 2.4 -6.8
Potential upside economic scenario:
National unemployment rate 3.8 3.9
Real GDP growth rate 3.5 2.0 5.5
Commercial real estate price index growth rate 1.3 4.0 5.3
Home price index growth rate 4.4 4.1 8.7
(Dollars in millions) Impact to Modeled Credit Losses
Increase (Decrease)
Potential downside economic scenario $ 233
Potential upside economic scenario (110)
These examples are only a few of the numerous possible economic scenarios that could be utilized in assessing the sensitivity of expected credit losses. The estimated impacts on credit losses in such scenarios pertain only to modeled credit losses and do not include consideration of other factors the Company may evaluate when determining its allowance for loan losses. As a result, it is possible that the Company may, at another point in time, reach different conclusions regarding credit loss estimates. The Company's process for determining the allowance for loan losses undergoes quarterly and periodic evaluations by independent risk management personnel, which among many other considerations, evaluate the reasonableness of management's methodology and significant assumptions.
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Management has assessed that the allowance for loan losses at September 30, 2025 appropriately reflected expected credit losses in the portfolio as of that date. A summary of the Company's allowance for loan losses by loan type and its reserve for unfunded credit commitments is presented in the following table.
ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR UNFUNDED CREDIT COMMITMENTS
(Dollars in millions) September 30, 2025 June 30, 2025 December 31, 2024
Allowance for loan losses:
Commercial and industrial $ 803 $ 793 $ 769
Real estate - commercial (a) 476 544 599
Real estate - residential 107 110 108
Consumer 775 750 708
Total $ 2,161 $ 2,197 $ 2,184
Allowance for loan losses as a percent of total loans 1.58 % 1.61 % 1.61 %
Allowance for loan losses as a percent of total nonaccrual loans (b) 143 140 129
Reserve for unfunded credit commitments (c) $ 95 $ 80 $ 60
__________________________________________________________________________________
(a)Included in the allowance for loan losses were reserves allocated as a percent of commercial real estate loans secured by office properties of 4.65% at September 30, 2025, 4.54% at June 30, 2025 and 4.70% at December 31, 2024.
(b)Given the Company's general position as a secured lender and its practice of charging off loan balances when collection is deemed doubtful, this ratio and changes in the ratio are generally not an indicative measure of the adequacy of the Company's allowance for loan losses, nor does management rely upon this ratio in assessing the adequacy of the Company's allowance for loan losses.
(c)Included in Accrued interest and other liabilities in the Consolidated Balance Sheet.
The lower ratio of the allowance for loan losses as a percent of loans outstanding at September 30, 2025 as compared with June 30, 2025 and December 31, 2024, reflects lower levels of criticized commercial real estate loans. The level of the allowance reflects management's evaluation of the loan portfolio using the methodology and considering the factors as described herein. Should the various economic forecasts and credit factors considered by management in establishing the allowance for loan losses change and should management's assessment of losses in the loan portfolio also change, the level of the allowance as a percent of loans could increase or decrease in future periods. The reported level of the allowance for loan losses reflects management's evaluation of the loan portfolio as of each respective date.
Other Income
The components of other income are presented in the accompanying table.
OTHER INCOME
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Mortgage banking revenues $ 147 $ 130 $ 17 13 % $ 395 $ 319 $ 76 24 %
Service charges on deposit accounts 141 137 4 2 411 383 28 7
Trust income 181 182 (1) -1 540 500 40 8
Brokerage services income 34 31 3 9 97 91 6 7
Trading account and other non-hedging
derivative gains 		18 12 6 66 39 29 10 32
Gain (loss) on bank investment securities 1 - 1 - 1 (8) 9 -
Other revenues from operations 230 191 39 21 563 456 107 23
Total other income $ 752 $ 683 $ 69 10 % $ 2,046 $ 1,770 $ 276 16 %
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Mortgage banking revenues
Mortgage banking revenues are comprised of both residential and commercial mortgage banking activities, which consist of realized gains and losses from sales of real estate loans and loan servicing rights, unrealized gains and losses on real estate loans held for sale and related commitments, real estate loan servicing fees, and other real estate loan related fees and income. The Company's involvement in commercial mortgage banking activities includes the origination, sales and servicing of loans under the multifamily loan programs of Fannie Mae, Freddie Mac, and the U.S. Department of Housing and Urban Development.
RESIDENTIAL MORTGAGE BANKING ACTIVITIES
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Residential mortgage banking revenues
Gains on loans originated for sale $ 9 $ 8 $ 1 10 % $ 23 $ 23 $ - 1 %
Loan servicing fees 35 34 1 3 105 114 (9) -8
Loan sub-servicing and other fees 64 55 9 17 159 92 67 72
Total loan servicing revenues 99 89 10 11 264 206 58 28
Total residential mortgage banking revenues $ 108 $ 97 $ 11 11 % $ 287 $ 229 $ 58 25 %
New commitments to originate loans for sale $ 407 $ 322 $ 85 27 % $ 1,019 $ 1,092 $ (73) -7 %
(Dollars in millions) September 30,
2025 		June 30,
2025 		December 31, 2024 September 30,
2024
Balances at period end
Loans held for sale $ 327 $ 222 $ 211 $ 242
Commitments to originate loans for sale 329 248 190 258
Commitments to sell loans 576 407 353 419
Capitalized mortgage servicing rights 305 326 368 389
Loans serviced for others 36,421 36,952 38,105 38,609
Loans sub-serviced for others (a) 161,785 157,608 111,544 112,695
Total loans serviced for others $ 198,206 $ 194,560 $ 149,649 $ 151,304
__________________________________________________________________________________
(a)The contractual servicing rights associated with residential mortgage loans sub-serviced by the Company were predominantly held by affiliates of BLG. Information about the Company's relationship with BLG and its affiliates is included in note 16 of Notes to Financial Statements.
The higher balances of residential mortgage loans sub-serviced for others at September 30, 2025 and June 30, 2025 as compared with December 31, 2024 and September 30, 2024, and the corresponding increase in related revenues for the nine months ended September 30, 2025 as compared with the nine months ended September 30, 2024, reflect an arrangement effective February 2025 whereby the Company began sub-servicing $51.7 billion of additional residential mortgage loans with contractual servicing rights held by Bayview Financial. The increase in residential mortgage banking revenues in the third quarter of 2025 as compared with the second quarter of 2025 reflects a rise in the level of delinquent loans sub-serviced for others, which generated higher sub-servicing fees.
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COMMERCIAL MORTGAGE BANKING ACTIVITIES
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Commercial mortgage banking revenues
Gains on loans originated for sale $ 20 $ 14 $ 6 33 % $ 50 $ 35 $ 15 41 %
Loan servicing fees and other 19 19 - 6 58 55 3 8
Total commercial mortgage banking revenues $ 39 $ 33 $ 6 18 % $ 108 $ 90 $ 18 21 %
Loans originated for sale to other investors $ 1,051 $ 1,368 $ (317) -23 % $ 3,138 $ 2,861 $ 277 10 %
(Dollars in millions) September 30,
2025 		June 30,
2025 		December 31, 2024 September 30,
2024
Balances at period end
Loans held for sale $ 278 $ 361 $ 310 $ 716
Commitments to originate loans for sale 1,074 659 479 825
Commitments to sell loans 1,292 1,017 789 1,521
Capitalized mortgage servicing rights 123 124 126 116
Loans serviced for others (a) 28,957 28,416 27,474 25,793
Loans sub-serviced for others 4,297 4,209 4,063 4,044
Total loans serviced for others $ 33,254 $ 32,625 $ 31,537 $ 29,837
__________________________________________________________________________________
(a)Includes $4.4 billion at September 30, 2025, $4.3 billion at June 30, 2025, $4.2 billion at December 31, 2024 and $3.9 billion at September 30, 2024 of loan balances for which investors had recourse to the Company if such balances are ultimately uncollectable.
The higher gains on commercial mortgage loans originated for sale in the recent quarter as compared with the second quarter of 2025 reflect higher margins on new commitments to originate commercial real estate loans for sale. The increase in gains on commercial mortgage loans originated for sale in the first three quarters of 2025 as compared with the similar 2024 period reflects increased volume of and higher margin on new commitments to originate commercial real estate loans for sale.
Service charges on deposit accounts
Service charges on deposit accounts for the first nine months of 2025 increased $28 million as compared with the first nine months of 2024 reflecting higher commercial service charges that resulted from pricing changes and increased customer usage of sweep products.
Trust income
Trust income primarily includes revenues from two significant businesses managed within the Company's Institutional Services and Wealth Management segment. The Institutional Services business provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients who: (i) use capital markets financing structures; (ii) use independent trustees to hold assets; and (iii) need investment and cash management services. The Wealth Management business offers personal trust, planning and advisory, fiduciary, asset management, family office and other services designed to help high net worth individuals and families grow, preserve and transfer wealth.
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TRUST INCOME AND ASSETS UNDER MANAGEMENT
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Trust income
Institutional Services $ 95 $ 96 $ (1) -2 % $ 285 $ 256 $ 29 11 %
Wealth Management 85 85 - 1 252 241 11 5
Commercial 1 1 - 4 3 3 - 7
Total trust income $ 181 $ 182 $ (1) -1 % $ 540 $ 500 $ 40 8 %
(Dollars in millions) September 30,
2025 		June 30,
2025 		December 31, 2024 September 30,
2024
Assets under management at period end
Trust assets under management (excluding proprietary funds) $ 67,447 $ 66,199 $ 65,798 $ 66,739
Proprietary mutual funds 15,833 14,543 14,461 15,092
Total assets under management $ 83,280 $ 80,742 $ 80,259 $ 81,831
For the nine months ended September 30, 2025 trust income increased $40 million as compared with the similar 2024 period. Institutional Services trust income rose $29 million reflecting higher sales and fund management fees from its global capital markets business, while Wealth Management trust income increased $11 million reflecting comparatively favorable market performance associated with managed assets.
Other revenues from operations
The components of other revenues from operations are presented in the accompanying table.
OTHER REVENUES FROM OPERATIONS
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Letter of credit and other credit-related fees $ 55 $ 58 $ (3) -5 % $ 162 $ 143 $ 19 13 %
Merchant discount and credit card fees 51 50 1 - 140 130 10 7
Bank owned life insurance revenue (a) 21 17 4 21 56 47 9 17
Equipment operating lease income 12 14 (2) -18 37 33 4 12
BLG income (b) 20 - 20 100 20 25 (5) -20
Other 71 52 19 41 148 78 70 89
Total other revenues from operations $ 230 $ 191 $ 39 21 % $ 563 $ 456 $ 107 23 %
__________________________________________________________________________________
(a)Tax-exempt income earned from bank owned life insurance includes increases in the cash surrender value of life insurance policies and benefits received. The Company owns both general account and separate account life insurance policies. To the extent market conditions change such that the market value of assets in a separate account bank owned life insurance policy becomes less than the previously recorded cash surrender value, an adjustment is recorded as a reduction to other revenues from operations.
(b)During 2017, the operating losses of BLG resulted in M&T reducing the carrying value of its investment in BLG to zero. Subsequently, M&T has received cash distributions when declared by BLG that result in the recognition of income by M&T. M&T expects cash distributions from BLG in the future, but the timing and amount of those distributions are not within M&T's control. BLG is entitled to receive distributions from its affiliates that provide asset management and other services that are available for distribution to BLG's owners, including M&T. Information about the Company's relationship with BLG and its affiliates is included in note 16 of Notes to Financial Statements.
Other revenues from operations increased $39 million in the third quarter of 2025 as compared with the second quarter of 2025 reflecting a distribution of an earnout payment of $28 million related to the Company's 2023 sale of its CIT business, a $20 million distribution from M&T's investment in BLG and a $12 million gain on the sale of equipment leases each in the recent quarter, partially offset by gains on the sales of an out-of-footprint loan portfolio of $15 million and a subsidiary that specialized in institutional services of $10 million each in the second quarter of 2025.
In addition to the items noted in the previous paragraph, higher other revenues from operations in the first nine months of 2025 as compared with the first nine months of 2024 reflected increases in letter of credit and other credit-related fees, including higher loan syndication fees, and a rise in merchant discount and credit card interchange revenues.
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Other Expense
The components of other expense are presented in the accompanying table.
OTHER EXPENSE
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2025 		June 30,
2025 		Amount % September 30,
2025 		September 30,
2024 		Amount %
Salaries and employee benefits $ 833 $ 813 $ 20 2 % $ 2,533 $ 2,372 $ 161 7 %
Equipment and net occupancy 129 130 (1) - 391 379 12 3
Outside data processing and software 138 138 - - 412 367 45 12
Professional and other services 81 86 (5) -7 251 264 (13) -5
FDIC assessments 13 22 (9) -41 58 122 (64) -53
Advertising and marketing 23 25 (2) -8 70 74 (4) -6
Amortization of core deposit and other
intangible assets 		10 9 1 - 32 40 (8) -20
Other costs of operations 136 113 23 21 367 378 (11) -3
Total other expense $ 1,363 $ 1,336 $ 27 2 % $ 4,114 $ 3,996 $ 118 3 %
Salaries and employee benefits
Quarterly trends in full-time equivalent employees are presented in the following table.
FULL-TIME EQUIVALENT EMPLOYEES
Three Months Ended
September 30, 2025 June 30, 2025 December 31, 2024 September 30, 2024
Average full-time equivalent employees 22,554 22,395 22,067 22,073
Full-time equivalent employees at period end 22,383 22,590 22,101 21,986
Salaries and employee benefits expense increased $20 million in the recent quarter as compared with the second quarter of 2025 reflecting higher severance-related expense.
Salaries and employee benefits expense increased $161 million in the nine months ended September 30, 2025 as compared with the year-earlier period reflecting higher salaries expense from annual merit and other increases, a rise in staffing levels and an increase in incentive compensation. Also contributing to the increase was higher employee benefits expense, reflecting a rise in medical benefits expenses and an increase in severance-related expense.
Nonpersonnel expenses
Nonpersonnel expenses aggregated $530 million in the recent quarter, up from $523 million in the second quarter of 2025 reflecting higher expense associated with the Company's supplemental executive retirement savings plan due to market performance and an impairment of a renewable energy tax credit investment. Those unfavorable factors were partially offset by a decline in FDIC assessment expense reflecting a decrease in the FDIC's loss estimate associated with certain failed banks.
Nonpersonnel expenses decreased $43 million to $1.58 billion in the nine months ended September 30, 2025 as compared with $1.62 billion in the first nine months of 2024 reflecting lower FDIC assessment expense of $64 million, resulting from a reduction of special assessment expense and improved credit quality in the first nine months of 2025, and lower professional and other services expense. Those favorable factors were partially offset by a $45 million increase in outside data processing and software costs reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems.
Income Taxes
The provision for income taxes was $233 million in the third quarter of 2025, compared with $219 million in the second quarter of 2025. For the nine-month periods ended September 30, 2025 and 2024, the provision for income taxes was $629 million and $521 million, respectively. The Company's effective tax rates were 22.8% and 23.4% for the quarters ended September 30, 2025 and June 30, 2025, respectively, and 23.1% and 21.5% for the nine-month periods ended September 30, 2025 and 2024, respectively. The income tax expense for the nine months ended
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September 30, 2024 reflects a $17 million net discrete tax benefit related to the resolution of an income tax matter inherited from the acquisition of People's United, and a $14 million discrete tax benefit related to certain tax credits claimed on a prior year tax return. The Company's effective tax rate is affected by the level of income earned that is exempt from tax relative to the overall level of pre-tax income, the amount of income allocated to the various state and local jurisdictions where the Company operates, because tax rates differ among such jurisdictions, and the impact of any large discrete or infrequently occurring items. The Company's effective tax rate in future periods may also be affected by any change in income tax laws or regulations and interpretations of income tax regulations that differ from the Company's interpretations by any of the various tax authorities that may examine tax returns filed by M&T or any of its subsidiaries. New federal tax legislation was signed into law on July 4, 2025, which includes a broad range of tax reform provisions. The Company does not expect the new legislation will have a material impact on its effective tax rate.
Liquidity Risk
As a financial intermediary, the Company is exposed to various risks, including liquidity and market risk. Liquidity refers to the Company's ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future obligations, including demands for loans and deposit withdrawals, funding operating costs and other corporate purposes. Liquidity risk arises whenever the cash flows associated with financial instruments included in assets and liabilities differ.
The most significant source of funding for the Company is core deposits, which are generated from a large base of consumer, corporate and institutional customers. That customer base has become more geographically diverse as a result of expanding the Company's businesses over time. Nevertheless, the Company faces competition in offering products and services from a large array of financial market participants, including banks, thrifts, mutual funds, securities dealers and others. Core deposits totaled $149.8 billion at September 30, 2025, up from $147.5 billion at December 31, 2024. The higher level of core deposits at September 30, 2025 reflects higher savings and interest-checking deposits, partially offset by lower noninterest-bearing deposits and core time deposits.
The Company supplements funding provided through core deposits with various short-term and long-term wholesale borrowings, including overnight federal funds purchases, repurchase agreements, advances from the FHLBs, brokered deposits and longer-term borrowings. M&T Bank has access to additional funding sources through secured borrowings from the FHLB of New York and the FRB of New York. M&T Bank is also a counterparty to the FRB of New York standing repurchase agreement facility, which allows it to enter into overnight repurchase transactions using eligible investment securities. At September 30, 2025 and December 31, 2024, long-term borrowings aggregated $12.9 billion and $12.6 billion, respectively, and short-term borrowings aggregated $2.1 billion and $1.1 billion, respectively. Information about the Company's borrowings is included in note 5 of Notes to Financial Statements.
The Company's wholesale funding sources include the placement of brokered deposits. Brokered deposits, comprised predominantly of brokered savings and interest-checking deposit accounts, totaled 7% of the Company's total deposit base at each of September 30, 2025 and December 31, 2024. The Company actively adjusts its wholesale funding sources in consideration of the competitive landscape for customer deposits and maintenance of its liquidity profile.
Total uninsured deposits were estimated to be $75.6 billion at September 30, 2025 and $73.0 billion at December 31, 2024. Approximately $10.5 billion and $9.1 billion of those uninsured deposits were collateralized by the Company at September 30, 2025 and December 31, 2024, respectively. The Company maintains available liquidity sources, which at September 30, 2025 represented approximately 133% of uninsured deposits that are not collateralized by the Company.
In addition to deposits and borrowings, other sources of liquidity include maturities and repayments of investment securities, loans and other earning assets, as well as cash generated from operations, such as fees collected for services. The Company also has the ability to securitize or sell certain financial assets, including various loan types, to provide other liquidity alternatives. U.S. Treasury and government-issued or guaranteed mortgage-backed securities comprised 94% of the Company's debt securities portfolio at September 30, 2025. The weighted-average durations of debt investment securities available for sale and held to maturity at September 30, 2025 were 2.5 years and 5.4 years, respectively.
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The Company's ability to obtain funding from these sources could be negatively impacted should the Company experience a substantial deterioration in its financial condition or its debt ratings or should the availability of funding become restricted due to a disruption in the financial markets. The Company attempts to quantify such risks by conducting scenario analyses that estimate the liquidity impact resulting from a debt ratings downgrade and other market events. Such impact is estimated by attempting to measure the effect on available unsecured lines of credit, available capacity from secured borrowing sources and securitizable assets.
The Company enters into contractual obligations in the normal course of business that require future cash payments. Such obligations include, among others, payments related to deposits, borrowings, leases and other contractual commitments. Off-balance sheet commitments to customers may impact liquidity, including commitments to extend credit, standby letters of credit, commercial letters of credit, financial guarantees and indemnification contracts, and commitments to sell real estate loans. Because many of these commitments or contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. Further discussion of these commitments is provided in note 14 of Notes to Financial Statements.
M&T's primary source of funds to pay for operating expenses, shareholder dividends and treasury stock repurchases has historically been the receipt of dividends from its bank subsidiaries, which are subject to various regulatory limitations. Dividends from any bank subsidiary to M&T are limited by the amount of earnings of the subsidiary in the current year and the two preceding years. For purposes of that test, at September 30, 2025 approximately $2.5 billion was available for payment of dividends to M&T from bank subsidiaries. M&T may also obtain funding through long-term borrowings and the repayment of advances to subsidiaries. Further information about the long-term outstanding borrowings of M&T is provided in note 5 of Notes to Financial Statements. As a bank holding company, M&T is obligated to serve as a managerial and financial source of strength to its bank subsidiaries as described in Part I, Item 1, "Business" of M&T's 2024 Annual Report and may provide advances to those subsidiaries. As its ability to access the capital markets may be affected by market disruptions, M&T maintains sufficient resources at its parent company to satisfy projected cash outflows for an extended period without reliance on dividends from subsidiaries or external financing. As of September 30, 2025, M&T's parent company liquidity, inclusive of the projected repayment of notes receivable from bank subsidiaries, covered projected cash outflows for 39 months, including dividends on common and preferred stock, debt service and scheduled debt maturities.
The Company's Executive ALCO Committee closely monitors the Company's liquidity position on an ongoing basis for compliance with internal policies and regulatory expectations. As a Category IV institution, the Company adheres to enhanced liquidity standards which require the performance of internal liquidity stress testing. The stress testing is designed to ensure the Company has sufficient liquidity to withstand both institution-specific and market-wide stress scenarios. For each scenario, the Company applies liquidity stress which may include deposit run-off, increased draws on unfunded loan commitments, increased collateral need for margin calls, increased haircuts on investment security-based funding and reductions in unsecured and secured borrowing capacity. Stress scenarios are measured over various time frames ranging from overnight to twelve months. As required by regulation, the Company maintains a liquidity buffer comprised of cash and highly liquid unencumbered securities to cover a 30-day stress horizon. Liquidity stress events occurring over longer time horizons can be mitigated by the availability of secured funding sources at the FHLB of New York and FRB of New York. As described in Part I, Item 1, "Liquidity" of M&T's 2024 Annual Report, the Federal Reserve and other federal banking regulators established the LCR as a uniform measure to ensure banking organizations hold sufficient amounts of cash and unencumbered high-quality liquid assets to cover net cash outflows over a 30-day liquidity stress period. As a Category IV institution with less than a $50 billion balance of weighted short-term wholesale funding, M&T is not subject to the LCR. M&T, however, estimates that its LCR on September 30, 2025 was 108%, exceeding the regulatory minimum standards that would be applicable if it were a Category III institution subject to the Category III reduced LCR requirements.
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The table that follows is a summary of the Company's available sources of liquidity as of September 30, 2025 and December 31, 2024.
AVAILABLE LIQUIDITY SOURCES
(Dollars in millions) September 30, 2025 December 31, 2024
Deposits at the FRB of New York $ 16,697 $ 18,805
Unused secured borrowing facilities:
FRB of New York 25,069 24,546
FHLB of New York 17,779 17,655
Unencumbered investment securities (after estimated haircuts) 26,774 24,019
Total $ 86,319 $ 85,025
Management continuously evaluates the use and mix of its various available funding alternatives, including short-term borrowings, issuances of long-term debt, the placement of brokered deposits and the securitization of certain loan products. Management does not anticipate engaging in any activities, either currently or in the long term, for which adequate funding would not be available and would therefore result in a significant strain on liquidity at either M&T or its subsidiary banks. In accordance with liquidity regulations, the Company maintains a contingency funding plan to facilitate on-going liquidity management in times of liquidity stress. The plan outlines various funding options available during a liquidity stress event and establishes a clear escalation protocol to be followed within the Company's Enterprise Risk Framework. The plan sets forth funding strategies and procedures that management can quickly leverage to assist in decision-making and specifies roles and responsibilities for departments impacted by a potential liquidity stress event.
Market Risk and Interest Rate Sensitivity
Market risk is the risk of loss from adverse changes in the market prices and/or interest rates of the Company's financial instruments. A primary market risk the Company is exposed to is interest rate risk. Interest rate risk arises from the Company's core banking activities of lending and deposit-taking, because assets and liabilities reprice at different times and by different amounts as interest rates change. As a result, net interest income earned by the Company is subject to the effects of changing interest rates. The Company measures interest rate risk by calculating the variability of net interest income in future periods under various interest rate scenarios using projected balances for earning assets, interest-bearing liabilities and derivatives used to hedge interest rate risk. Management's philosophy toward interest rate risk management is to generally limit the variability of net interest income.
The Company's Executive ALCO Committee monitors the sensitivity of the Company's net interest income to changes in interest rates with the aid of a computer model that forecasts net interest income under different interest rate scenarios. In modeling changing interest rates, the Company considers different yield curve shapes that contemplate both parallel (that is, when interest rates at each point of the yield curve change by the same magnitude) and non-parallel (that is, allowing interest rates at points on the yield curve to change by different amounts) shifts in the yield curve. The Company also contemplates instantaneous and gradual shifts in the yield curve over the scenario time horizon. In utilizing the model, market-implied forward interest rates over the subsequent twelve months are generally used to determine a base interest rate scenario for the net interest income simulation. That calculated base net interest income is then compared with the income calculated under the varying interest rate scenarios. The model considers the impact of ongoing lending and deposit-gathering activities, as well as interrelationships in the magnitude and timing of the repricing of financial instruments, including the effect of changing interest rates on expected prepayments and maturities.
Management has taken actions to mitigate exposure to interest rate risk through the use of on- or off-balance sheet financial instruments and intends to do so in the future. Possible actions include, but are not limited to, changes in the pricing of loan and deposit products, modifying the composition of earning assets and interest-bearing liabilities, and adding to, modifying or terminating existing interest rate swap agreements or other financial instruments used for interest rate risk management purposes. At September 30, 2025, the aggregate notional amount of interest rate swap agreements entered into for interest rate risk management purposes that were currently in effect was $17.9 billion. In addition, the Company has entered into $13.2 billion of forward-starting interest rate swap agreements designated for hedging purposes. Information about interest rate swap agreements entered into for interest rate risk
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management purposes is included herein under the heading "Taxable-equivalent Net Interest Income" and in note 11 of Notes to Financial Statements.
The accompanying table as of September 30, 2025 and December 31, 2024 displays the estimated impact on net interest income in the base scenarios described herein resulting from changes in market interest rates. The scenarios presented in the table below assume a gradual and parallel change in interest rates across repricing categories during the first modeling year.
SENSITIVITY OF NET INTEREST INCOME TO CHANGES IN INTEREST RATES
Calculated Increase (Decrease)
in Projected Net Interest Income
(Dollars in millions) September 30, 2025 December 31, 2024
Changes in interest rates
+200 basis points $ (78) $ (4)
+100 basis points (19) 16
-100 basis points 17 (36)
-200 basis points - (81)
The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income. The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments, loan and deposit volumes, mix and pricing, and deposit maturities. Variations in amounts presented since December 31, 2024 reflect changes in the composition of the Company's earning assets and interest-bearing liabilities, as well as the level of market-implied forward interest rates and hedging actions taken by the Company. M&T's cumulative upward deposit pricing beta, which is the change in deposit pricing in response to a change in market interest rates, approximated 55% amidst a rising interest rate environment from the first quarter of 2022 through the second quarter of 2024. Reflecting the first cuts of the federal funds target interest rate since March 2020, the FOMC decreased that rate by 50 basis points in September 2024 followed by additional reductions of 25 basis points in each of November and December 2024 and September 2025. M&T's cumulative downward deposit pricing beta beginning in the third quarter of 2024 through the third quarter of 2025 approximated 52%. The assumptions used in interest rate sensitivity modeling are inherently uncertain and, as a result, the Company cannot precisely predict the impact of changes in interest rates on net interest income. Actual results may differ significantly from those presented due to the timing, magnitude and frequency of changes in interest rates and changes in market conditions and interest rate differentials (spreads) between maturity/repricing categories, as well as any actions, such as those previously described, which management may take to counter such changes.
Management also uses an EVE model to supplement the modeling technique described above and provide a long-term interest rate risk metric. EVE is a point-in-time analysis of the economic sensitivity of assets, liabilities and off-balance sheet positions that incorporates all cash flows over their estimated remaining lives. The EVE reflects the present value of cash flows from existing assets, liabilities and off-balance sheet financial instruments, but does not incorporate any assumptions for future originations, renewals or issuances. Management measures the impact of changes in market values due to interest rates under a number of scenarios, including immediate shifts of the yield curve. The percentage impact to the EVE resulting from a 100 basis-point increase and a 100 basis-point decrease in market interest rates was -4.8% and 2.2%, respectively, at September 30, 2025, and -5.1% and 2.5%, respectively, at December 31, 2024.
In addition to the effect of interest rates, changes in fair value of the Company's financial instruments can also result from a lack of trading activity for similar instruments in the financial markets. Information about the fair valuation of financial instruments is presented in note 13 of Notes to Financial Statements.
The Company enters into interest rate and foreign exchange contracts to meet the financial needs of customers that it includes in its consolidated financial statements as other non-hedging derivatives within other assets and other liabilities. Financial instruments utilized for such activities consist predominantly of interest rate swap agreements and forward and futures contracts related to foreign currencies. The Company generally mitigates the interest rate and foreign currency risk associated with customer activities by entering into offsetting positions with third parties
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that are also included in other assets and other liabilities. The fair values of non-hedging derivative positions associated with interest rate contracts and foreign currency and other option and futures contracts are presented in note 11 of Notes to Financial Statements. As with any non-government guaranteed financial instrument, the Company is exposed to credit risk associated with counterparties to its non-hedging derivative activities. Although the notional amounts of these contracts are not recorded in the Consolidated Balance Sheet, the unsettled fair values of such financial instruments are recorded in the Consolidated Balance Sheet. The fair values of such non-hedging derivative assets and liabilities recognized in the Consolidated Balance Sheet were $192 million and $451 million, respectively, at September 30, 2025 and $206 million and $787 million, respectively, at December 31, 2024. The fair value of asset and liability amounts at September 30, 2025 have been reduced by contractual settlements of $379 million and $33 million, respectively, and at December 31, 2024 have been reduced by contractual settlements of $686 million and $15 million, respectively. The amounts recorded in the Consolidated Balance Sheet associated with the Company's non-hedging derivative activities at September 30, 2025 and December 31, 2024 primarily reflect changes in values associated with interest rate swap agreements entered into with commercial customers and financial institutions that are not subject to periodic variation margin settlement payments.
Trading account assets were $95 million at September 30, 2025 and $101 million at December 31, 2024 and were comprised of mutual funds and other assets related to certain deferred compensation plans and non-qualified supplemental retirement and other benefit plans that were assumed by the Company in various acquisitions. Changes in the fair values of such assets are recorded as Trading account and other non-hedging derivative gains in the Consolidated Statement of Income. Changes in the valuation of the related liabilities, which are included in Accrued interest and other liabilities in the Consolidated Balance Sheet, are recognized in Other costs of operations in the Consolidated Statement of Income.
Given the Company's policies and positions, management believes that the potential loss exposure to the Company resulting from market risk associated with trading account and other non-hedging derivative activities was not material at September 30, 2025, however, as previously noted, the Company is exposed to credit risk associated with counterparties to such activities. Information about the Company's use of derivative financial instruments is included in note 11 of Notes to Financial Statements.
Capital
The following table presents components related to shareholders' equity and dividends.
SHAREHOLDERS' EQUITY, DIVIDENDS AND SELECT RATIOS
(Dollars in millions, except per share) September 30, 2025 December 31, 2024 September 30, 2024
Preferred stock $ 2,394 $ 2,394 $ 2,394
Common shareholders' equity 26,334 26,633 26,482
Total shareholders' equity $ 28,728 $ 29,027 $ 28,876
Per share:
Common shareholders' equity $ 170.43 $ 160.90 $ 159.38
Tangible common shareholders' equity (a) 115.31 109.36 107.97
Ratios:
Shareholders' equity to total assets 13.60 % 13.95 % 13.63 %
Tangible common shareholders' equity to tangible assets (a) 8.79 9.07 8.83
Cash dividends declared for quarter ended:
Common stock (b) $ 234 $ 226 $ 226
Common stock per share 1.50 1.35 1.35
Preferred stock (b) 36 35 47
__________________________________________________________________________________
(a)Reconciliations of total common shareholders' equity and tangible common equity and total assets and tangible assets as of each of those dates are presented in Table 2.
(b)Cash dividends on common stock were $670 million and $671 million and preferred stock dividends were $107 million and $99 million for the nine months ended September 30, 2025 and 2024, respectively.
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Shareholders' equity reflects accumulated other comprehensive income or loss, which includes the net after-tax impact of unrealized gains or losses on investment securities classified as available for sale, gains or losses associated with interest rate swap agreements designated as cash flow hedges and adjustments to reflect the funded status of defined benefit pension and other postretirement plans. The components of accumulated other comprehensive income (loss) are presented in the following table.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - NET OF INCOME TAX
(Dollars in millions, except per share) September 30, 2025 December 31, 2024 September 30, 2024
Investment securities unrealized gains (losses), net (a) $ 121 $ (153) $ 51
Cash flow hedges unrealized gains (losses), net (b) 68 (101) 45
Defined benefit plans adjustments, net (c) 93 98 (119)
Other, net (5) (8) (4)
Total $ 277 $ (164) $ (27)
Accumulated other comprehensive income (loss), net, per common share $ 1.80 $ (0.99) $ (0.16)
__________________________________________________________________________________
(a)Refer to note 3 of Notes to Financial Statements.
(b)Refer to note 11 of Notes to Financial Statements.
(c)Refer to note 8 of Notes to Financial Statements.
On January 22, 2025, M&T's Board of Directors authorized a program under which $4.0 billion of common shares may be repurchased. That authorization replaced and terminated the previous authorized share repurchase program effective as of the same date. M&T repurchased 2.1 million shares of its common stock in the recent quarter at an average cost per share of $193.46 resulting in a total cost of $409 million and 6.1 million shares of its common stock at an average cost per share of $175.93 resulting in a total cost of $1.1 billion in the second quarter of 2025. During the first nine months of 2025 and 2024, M&T repurchased 11.6 million and 1.2 million shares of its common stock at an average cost per share of $183.85 and $166.40 resulting in a total cost of $2.2 billion and $200 million, respectively. Discretion as to the amount and timing of authorized share repurchases in a given period has been delegated, through the authorization of the Board of Directors, to management and can be influenced by capital and liquidity requirements, including funding of future loan growth and other balance sheet management activities, as well as market and economic conditions.
M&T and its subsidiary banks are required to comply with applicable Capital Rules which prescribe minimum capital ratios. Capital Rules require buffers in addition to these minimum risk-based capital ratios. M&T is subject to an SCB requirement that is determined through the Federal Reserve's supervisory stress tests and M&T's bank subsidiaries are subject to a 2.5% capital conservation buffer requirement. The buffer requirement must be composed entirely of CET1 capital. M&T's SCB at September 30, 2025 was 3.8%. In June 2025, the Federal Reserve released the results of its most recent supervisory stress tests. Based on those results, on October 1, 2025, M&T's SCB of 2.7% became effective. The regulatory capital ratios of the Company and its bank subsidiaries, M&T Bank and Wilmington Trust, N.A., as of September 30, 2025 are presented in the accompanying table.
REGULATORY CAPITAL RATIOS
(Dollars in millions) Regulatory Minimum (a) M&T
(Consolidated) 		M&T
Bank 		Wilmington
Trust, N.A.
CET1 capital 4.50 % 10.99 % 12.24 % 287.04 %
Tier 1 capital 6.00 12.49 12.24 287.04
Total capital 8.00 14.35 14.03 287.33
Tier 1 leverage 4.00 9.84 9.64 89.31
RWA $ 159,536 $ 158,989 $ 232
__________________________________________________________________________________
(a)Exclusive of required buffers as applicable.
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Capital Rules generally require the deduction of goodwill and core deposit and other intangible assets, net of applicable deferred taxes, from the calculation of capital in the determination of the minimum capital ratios. As a result of previous business acquisitions, the Company recorded goodwill of $8.5 billion and core deposit and other intangible assets of $74 million at September 30, 2025. Goodwill, as required by GAAP, is not amortized, but rather is tested for impairment at least annually at the business reporting unit level. The Company completed its annual goodwill impairment test in the fourth quarter of 2024 and concluded the amount of goodwill was not impaired at the testing date. The Company has not identified events or circumstances that would more likely than not reduce the fair value of a business reporting unit below its carrying amount at September 30, 2025. Should a business reporting unit with assigned goodwill experience declines in revenue, increased credit losses or expenses, or other adverse developments due to economic, regulatory, competition or other factors, that would be material to that reporting unit, an impairment of goodwill could occur in a future period that could be material to the Company's Consolidated Balance Sheet and its Consolidated Statement of Income. Although a goodwill impairment charge would not have a significant impact on the Company's regulatory tangible capital ratios, it would reduce the capacity of its bank subsidiary, M&T Bank, to dividend earnings to M&T. As described herein under the heading "Liquidity Risk," M&T's parent company liquidity at September 30, 2025 covered projected cash outflows for 39 months, including dividends on common and preferred stock, debt service and scheduled debt maturities.
The Company is subject to the comprehensive regulatory framework applicable to bank and financial holding companies and their subsidiaries, which includes examinations by a number of regulators. Regulation of financial institutions such as M&T and its subsidiaries is intended primarily for the protection of depositors, the Deposit Insurance Fund of the FDIC and the banking and financial system as a whole, and generally is not intended for the protection of shareholders, investors or creditors other than insured depositors. Changes in laws, regulations and regulatory policies applicable to the Company's operations can increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive environment in which the Company operates, all of which could have a material effect on the business, financial condition or results of operations of the Company and in M&T's ability to pay dividends. For additional information concerning this comprehensive regulatory framework, refer to Part I, Item 1, "Supervision and Regulation of the Company" of M&T's 2024 Annual Report.
As described in Part I, Item 1, "Capital Requirements" of M&T's 2024 Annual Report, on July 27, 2023 the federal banking agencies issued a notice of proposed rulemaking to modify the regulatory capital requirements applicable to large banking organizations with total assets exceeding $100 billion, like the Company. Management continues to evaluate the impact of the proposed rules on the regulatory capital requirements of M&T and its subsidiary banks. At September 30, 2025, the inclusion of accumulated other comprehensive income components related to investment securities available for sale and defined benefit plan liability adjustments would have increased the Company's CET1 capital ratio by 13 basis points.
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. Financial information about the Company's reportable segments is presented in note 15 of Notes to Financial Statements. The Company's reportable segments are Commercial Bank, Retail Bank and Institutional Services and Wealth Management. All other business activities that are not included in the three reportable segment results have been included in the "All Other" category.
NET INCOME (LOSS) BY REPORTABLE SEGMENT
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30, 2025 June 30, 2025 Amount % September 30, 2025 September 30, 2024 Amount %
Net income (loss)
Commercial Bank $ 228 $ 231 $ (3) -1 % $ 690 $ 645 $ 45 7 %
Retail Bank 376 375 1 - 1,098 1,364 (266) -20
Institutional Services and Wealth Management 142 128 14 12 391 409 (18) -4
All Other 46 (18) 64 - (87) (511) 424 83
Total net income $ 792 $ 716 $ 76 11 % $ 2,092 $ 1,907 $ 185 10 %
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Commercial Bank
The Commercial Bank segment provides a wide range of credit products and banking services to middle-market and large commercial customers, mainly within the markets served by the Company. Services provided by this segment include commercial lending and leasing, credit facilities secured by various types of commercial real estate, letters of credit, deposit products and cash management services. Commercial real estate loans may be secured by multifamily residential buildings, hotels, office, retail and industrial space or other types of collateral. Activities of this segment include the origination, sales and servicing of commercial real estate loans through the Fannie Mae DUS program and other programs. Commercial real estate loans held for sale are included in this segment.
COMMERCIAL BANK SEGMENT FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30, 2025 June 30, 2025 Amount % September 30, 2025 September 30, 2024 Amount %
Income Statement
Net interest income $ 539 $ 531 $ 8 2 % $ 1,599 $ 1,652 $ (53) -3 %
Noninterest income 209 205 4 2 587 487 100 21
Total revenue 748 736 12 2 2,186 2,139 47 2
Provision for credit losses 72 60 12 20 168 193 (25) -13
Noninterest expense 366 363 3 1 1,080 1,062 18 2
Income before taxes 310 313 (3) -1 938 884 54 6
Income taxes 82 82 - -1 248 239 9 4
Net income $ 228 $ 231 $ (3) -1 % $ 690 $ 645 $ 45 7 %
Average Balance Sheet
Loans:
Commercial and industrial $ 54,188 $ 53,549 $ 639 1 % $ 53,770 $ 50,442 $ 3,328 7 %
Real estate - commercial 22,682 23,655 (973) -4 23,624 29,170 (5,546) -19
Real estate - residential 445 414 31 8 419 437 (18) -4
Consumer 21 20 1 7 20 25 (5) -21
Total loans $ 77,336 $ 77,638 $ (302) - % $ 77,833 $ 80,074 $ (2,241) -3 %
Deposits:
Noninterest-bearing $ 10,280 $ 11,337 $ (1,057) -9 % $ 10,970 $ 12,648 $ (1,678) -13 %
Interest-bearing 35,749 34,658 1,091 3 34,866 30,907 3,959 13
Total deposits $ 46,029 $ 45,995 $ 34 - % $ 45,836 $ 43,555 $ 2,281 5 %
The Commercial Bank segment's net income in the third quarter of 2025 declined slightly from the second quarter of 2025.
•Net interest income increased $8 million reflecting an expansion of the net interest margin on loans of 4 basis points and the impact of one additional day in the recent quarter, partially offset by a narrowing of the net interest margin on deposits of 5 basis points.
•A modest rise in noninterest income reflected higher commercial mortgage banking revenues and a gain on the sale of equipment leases in the recent quarter, partially offset by a gain on the sale of an out-of-footprint residential builder and developer loan portfolio in the second quarter of 2025.
•The provision for credit losses increased $12 million reflecting higher net charge offs of commercial and industrial loans.
•Average loans declined $302 million reflecting payoffs and paydowns of commercial real estate loans and the full-quarter impact of the sale of an out-of-footprint residential builder and developer loan portfolio in the second quarter of 2025, partially offset by higher average balances of commercial and industrial loans reflecting growth in loans to the financial and insurance industry.
•Average deposits were essentially unchanged reflecting higher average savings and interest-checking deposit balances, partially offset by lower noninterest-bearing deposits largely driven by a single commercial customer.
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Net income for the Commercial Bank segment increased $45 million in the first nine months of 2025 as compared with the first nine months of 2024.
•Net interest income decreased $53 million reflecting a narrowing of the net interest margin on deposits of 23 basis points and a decline in average loans of $2.2 billion, partially offset by higher average deposits of $2.3 billion.
•Noninterest income increased $100 million due to higher other revenues from operations of $59 million, reflecting a rise in credit-related fees of $19 million, a $15 million gain on the sale of an out-of-footprint residential builder and developer loan portfolio and a $12 million gain on the sale of equipment leases. Also contributing to that increase was higher commercial mortgage banking revenues of $18 million, a rise in service charges on commercial deposit accounts of $13 million and an increase in trading account and other non-hedging derivative gains of $10 million.
•The provision for credit losses decreased $25 million reflecting lower net charge-offs of commercial and industrial loans, partially offset by a higher provision for unfunded credit commitments.
•Noninterest expense increased $18 million reflecting higher personnel-related expenses and outside data processing and software costs.
•Average loans decreased $2.2 billion reflecting a reduction in average commercial real estate loans, partially offset by higher average commercial and industrial loans reflecting growth in loans to financial and insurance companies and motor vehicle and recreational finance dealers.
•Average deposits grew $2.3 billion reflecting growth in average savings and interest-checking deposits, partially offset by a decline in average noninterest-bearing deposits.
Retail Bank
The Retail Bank segment provides a wide range of services to consumers and small businesses through the Company's branch network and several other delivery channels such as telephone banking, internet banking and ATMs. The Company has domestic banking offices primarily in the Northeastern and Mid-Atlantic regions of the U.S. including the District of Columbia. The segment offers to its customers deposit products, including demand, savings and time accounts, and other services. Credit services offered by this segment include automobile and recreational finance loans (primarily originated indirectly through dealers), home equity loans and lines of credit, credit cards and other loan products. This segment also originates and services residential mortgage loans and either sells those loans in the secondary market to investors or retains them for investment purposes. Residential mortgage loans are also originated and serviced on behalf of the Institutional Services and Wealth Management segment. The Company periodically purchases the rights to service residential real estate loans that have been originated by other entities and also sub-services residential real estate loans for others. Residential real estate loans held for sale are included in this segment. This segment also provides various business loans, including loans guaranteed by the Small Business Administration, business credit cards, deposit products and services such as cash management, payroll and direct deposit, merchant credit card and letters of credit to small businesses and professionals through the Company's branch network and other delivery channels.
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RETAIL BANK SEGMENT FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30, 2025 June 30, 2025 Amount % September 30, 2025 September 30, 2024 Amount %
Income Statement
Net interest income $ 999 $ 988 $ 11 1 % $ 2,959 $ 3,248 $ (289) -9 %
Noninterest income 249 234 15 6 691 606 85 14
Total revenue 1,248 1,222 26 2 3,650 3,854 (204) -5
Provision for credit losses 70 71 (1) -1 220 202 18 9
Noninterest expense 676 648 28 4 1,960 1,815 145 8
Income before taxes 502 503 (1) - 1,470 1,837 (367) -20
Income taxes 126 128 (2) -1 372 473 (101) -21
Net income $ 376 $ 375 $ 1 - % $ 1,098 $ 1,364 $ (266) -20 %
Average Balance Sheet
Loans:
Commercial and industrial $ 6,322 $ 6,236 $ 86 1 % $ 6,324 $ 6,936 $ (612) -9 %
Real estate - commercial 1,639 1,647 (8) - 1,653 1,859 (206) -11
Real estate - residential 21,560 20,980 580 3 21,040 20,623 417 2
Consumer 25,331 24,541 790 3 24,476 21,238 3,238 15
Total loans $ 54,852 $ 53,404 $ 1,448 3 % $ 53,493 $ 50,656 $ 2,837 6 %
Deposits:
Noninterest-bearing $ 24,356 $ 24,449 $ (93) - % $ 24,342 $ 25,055 $ (713) -3 %
Interest-bearing 66,087 66,165 (78) - 65,662 66,565 (903) -1
Total deposits $ 90,443 $ 90,614 $ (171) - % $ 90,004 $ 91,620 $ (1,616) -2 %
The Retail Bank segment's net income was relatively unchanged in the third quarter of 2025 as compared with the second quarter of 2025.
•Net interest income increased $11 million reflecting higher average balances of loans of $1.4 billion and the impact of one additional day in the recent quarter.
•Noninterest income increased $15 million reflecting higher residential mortgage loan sub-servicing revenues.
•Noninterest expense increased $28 million reflecting higher other costs of operations, an increase in equipment and net occupancy costs and a rise in centrally-allocated costs associated with data processing, risk management and other support services provided to the Retail Bank segment.
•Average loans increased $1.4 billion reflecting higher average consumer loans, due to recreational finance and automobile loan growth, and a rise in average residential real estate loans resulting from the retention of originated residential mortgage loans and purchases.
•Average deposits reflect a modest decline in the recent quarter.
Net income for the Retail Bank segment decreased $266 million in the first nine months of 2025 as compared with the similar 2024 period.
•Net interest income declined $289 million reflecting a narrowing of the net interest margin on deposits of 44 basis points and lower average balances of those deposits of $1.6 billion, partially offset by a widening of the net interest margin on loans of 4 basis points and higher average balances of those loans of $2.8 billion.
•Noninterest income increased $85 million reflecting higher residential mortgage loan sub-servicing revenues related to the arrangement effective February 2025 whereby the Company began sub-servicing $51.7 billion of additional residential mortgage loans with contractual servicing rights held by Bayview Financial, and an increase in service charges on retail deposit accounts.
•The provision for credit losses rose $18 million reflecting higher net charge-offs of indirect consumer loans.
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•Noninterest expense increased $145 million due to higher centrally-allocated costs associated with data processing, risk management and other support services provided to the Retail Bank segment of $117 million and a rise in personnel-related costs of $24 million.
•Average loans rose $2.8 billion reflecting recreational finance and automobile average loan growth.
•Lower average deposits reflect the maturity of customer time deposit accounts and lower noninterest-bearing deposits, partially offset by growth in average savings and interest-checking deposits.
Institutional Services & Wealth Management
The Institutional Services and Wealth Management segment provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients, as well as personal trust, planning and advisory, fiduciary, asset management, family office, and other services designed to help high net worth individuals and families grow, preserve and transfer wealth. This segment also provides investment products, including mutual funds and annuities and other services to customers.
INSTITUTIONAL SERVICES & WEALTH MANAGEMENT SEGMENT FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30, 2025 June 30, 2025 Amount % September 30, 2025 September 30, 2024 Amount %
Income Statement
Net interest income $ 163 $ 166 $ (3) -2 % $ 500 $ 565 $ (65) -12 %
Noninterest income 244 225 19 9 678 602 76 13
Total revenue 407 391 16 4 1,178 1,167 11 1
Provision for credit losses - 2 (2) - 5 6 (1) -20
Noninterest expense 217 217 - - 649 610 39 6
Income before taxes 190 172 18 12 524 551 (27) -5
Income taxes 48 44 4 12 133 142 (9) -6
Net income $ 142 $ 128 $ 14 12 % $ 391 $ 409 $ (18) -4 %
Average Balance Sheet
Loans:
Commercial and industrial $ 1,007 $ 989 $ 18 2 % $ 962 $ 739 $ 223 30 %
Real estate - commercial 32 31 1 6 31 40 (9) -22
Real estate - residential 2,354 2,290 64 3 2,285 1,985 300 15
Consumer 747 793 (46) -6 779 734 45 6
Total loans $ 4,140 $ 4,103 $ 37 1 % $ 4,057 $ 3,498 $ 559 16 %
Deposits:
Noninterest-bearing $ 8,772 $ 8,868 $ (96) -1 % $ 9,001 $ 9,094 $ (93) -1 %
Interest-bearing 9,774 10,311 (537) -5 9,763 7,809 1,954 25
Total deposits $ 18,546 $ 19,179 $ (633) -3 % $ 18,764 $ 16,903 $ 1,861 11 %
The Institutional Services and Wealth Management segment's net income increased $14 million in the third quarter of 2025 as compared with the second quarter of 2025.
•Noninterest income increased $19 million reflecting a $28 million distribution in the recent quarter of an earnout payment related to the Company's sale of its CIT business in 2023, partially offset by a $10 million gain on the sale of a subsidiary that specialized in institutional services in the second quarter of 2025.
Net income for the Institutional Services and Wealth Management segment decreased $18 million for the nine months ended September 30, 2025 as compared with the similar 2024 period.
•Net interest income decreased $65 million reflecting a 92 basis-point narrowing of the net interest margin on deposits, partially offset by higher average balances of those deposits.
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•Noninterest income increased $76 million reflecting higher trust income of $40 million resulting from increased sales and fund management fees from the segment's global capital markets business and higher fee income from its Wealth Management business, reflecting comparatively favorable market performance associated with managed assets. Also contributing to that increase was the distribution of an earnout payment related to the Company's sale of its CIT business in 2023 and the gain on the sale of a subsidiary that specialized in institutional services each in the first nine months of 2025.
•Noninterest expense rose $39 million reflecting a rise in personnel-related expenses and centrally-allocated costs associated with data processing, risk management and other support services provided to the Institutional Services and Wealth Management segment.
All Other
The "All Other" category reflects other activities of the Company that are not directly attributable to the reportable segments. Reflected in this category are the difference between the provision for credit losses and the calculated provision allocated to the reportable segments; goodwill and core deposit and other intangible assets resulting from the acquisitions of financial institutions; merger-related gains and expenses related to acquisitions; the net impact of the Company's internal funds transfer pricing methodology; eliminations of transactions between reportable segments; certain non-recurring transactions; and the residual effects of unallocated support systems and general and administrative expenses. The Company's investment securities portfolio, brokered deposits and short-term and long-term borrowings are generally included in the "All Other" category. In its management of interest rate risk, the Company utilizes interest rate swap agreements to modify the repricing characteristics of certain portfolios of earning assets and interest-bearing liabilities. The results of such activities are captured in the "All Other" category.
ALL OTHER CATEGORY FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30, 2025 June 30, 2025 Amount % September 30, 2025 September 30, 2024 Amount %
Income Statement
Net interest income (expense) $ 60 $ 28 $ 32 109 % $ 111 $ (341) $ 452 - %
Noninterest income 50 19 31 175 90 75 15 21
Total revenue (expense) 110 47 63 135 201 (266) 467 -
Provision for credit losses (17) (8) (9) -92 (13) 69 (82) -
Noninterest expense 104 108 (4) -4 425 509 (84) -17
Loss before taxes 23 (53) 76 - (211) (844) 633 75
Income taxes (23) (35) 12 31 (124) (333) 209 63
Net income (loss) $ 46 $ (18) $ 64 - % $ (87) $ (511) $ 424 83 %
The "All Other" category net income was $46 million in the third quarter of 2025 as compared with a net loss of $18 million in the second quarter of 2025.
•Net interest income increased $32 million due to the favorable impact from the Company's allocation methodologies for internal transfers related to funding charges and credits associated with earning assets and interest-bearing liabilities of the Company's reportable segments and lower net interest expense from interest rate swap agreements entered into for interest rate risk management purposes.
•Noninterest income rose $31 million reflecting a $20 million distribution from M&T's investment in BLG in the recent quarter.
•Noninterest expense declined modestly reflecting a reduction of FDIC special assessment expense, lower professional and other services expense and a decrease in equipment and net occupancy costs, partially offset by an increase in other costs of operations reflecting an impairment of a renewable energy tax credit investment in the recent quarter.
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The net loss recorded for the "All Other" category was $87 million for the first nine months of 2025 as compared with a net loss of $511 million in the similar 2024 period.
•Net interest income increased $452 million due to the favorable impact from the Company's allocation methodologies for internal transfers related to funding charges and credits associated with earning assets and interest-bearing liabilities of the Company's reportable segments and lower net interest expense from interest rate swap agreements entered into for interest rate risk management purposes.
•Noninterest income increased $15 million reflecting higher tax-exempt income from bank owned life insurance in the 2025 period and realized losses on sales of certain non-agency investment securities in the first nine months of 2024, partially offset by lower distributions from M&T's investment in BLG of $5 million.
•The $82 million decrease in the provision for credit losses reflects the net impact of the allocation of the provision to the reportable segments.
•Noninterest expense decreased $84 million reflecting a decline in FDIC assessments resulting from lower special assessment expense and improved credit quality.
Recent Accounting Developments
A discussion of the Company's significant accounting policies and critical accounting estimates can be found in M&T's 2024 Annual Report. A summary of recent accounting developments is included in note 1 of Notes to Financial Statements.
Forward-Looking Statements
"Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of this quarterly report contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about the Company's business, and management's beliefs and assumptions.
Statements regarding the potential effects of events or factors specific to the Company and/or the financial industry as a whole, as well as national and global events generally, on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted.
While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events, developments, and current conditions in the financial services industry, including trust, brokerage and investment management businesses; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in the Company's credit ratings; domestic or international political developments and other geopolitical events, including trade and tariff policies and international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-, brokerage-, and investment management-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries
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individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the initiation and outcome of potential, pending and future litigation, investigations and governmental proceedings, including tax-related examinations and other matters; operational risk events, including loss resulting from fraud by employees or persons outside M&T and breaches in data and cybersecurity; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which the Company does business, and other factors.
The Company provides further detail regarding these risks and uncertainties in its 2024 Annual Report, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty and does not undertake to update forward-looking statements.
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M&T Bank Corporation and Subsidiaries
Table 1
QUARTERLY TRENDS
2025 Quarters 2024 Quarters
Third Second First Fourth Third Second First
(Dollars in millions, except per share)
Earnings and dividends
Interest income (taxable-equivalent basis) $ 2,692 $ 2,618 $ 2,572 $ 2,719 $ 2,798 $ 2,802 $ 2,757
Interest expense 919 896 865 979 1,059 1,071 1,065
Net interest income 1,773 1,722 1,707 1,740 1,739 1,731 1,692
Less: Provision for credit losses 125 125 130 140 120 150 200
Other income 752 683 611 657 606 584 580
Less: Other expense 1,363 1,336 1,415 1,363 1,303 1,297 1,396
Income before income taxes 1,037 944 773 894 922 868 676
Applicable income taxes 233 219 177 201 188 200 133
Taxable-equivalent adjustment 12 9 12 12 13 13 12
Net income $ 792 $ 716 $ 584 $ 681 $ 721 $ 655 $ 531
Net income available to common shareholders-diluted $ 754 $ 679 $ 547 $ 644 $ 674 $ 626 $ 505
Per common share data:
Basic earnings 4.85 4.26 3.33 3.88 4.04 3.75 3.04
Diluted earnings 4.82 4.24 3.32 3.86 4.02 3.73 3.02
Cash dividends 1.50 1.35 1.35 1.35 1.35 1.35 1.30
Average common shares outstanding:
Basic 155,558 159,221 164,209 165,838 166,671 166,951 166,460
Diluted 156,553 160,005 165,047 166,969 167,567 167,659 167,084
Performance ratios
Annualized return on:
Average assets 1.49 % 1.37 % 1.14 % 1.28 % 1.37 % 1.24 % 1.01 %
Average common shareholders' equity 11.45 10.39 8.36 9.75 10.26 9.95 8.14
Net interest margin on average earning assets
(taxable-equivalent basis) 		3.68 3.62 3.66 3.58 3.62 3.59 3.52
Nonaccrual loans to total loans 1.10 1.16 1.14 1.25 1.42 1.50 1.71
Net operating (tangible) results (a)
Net operating income $ 798 $ 724 $ 594 $ 691 $ 731 $ 665 $ 543
Diluted net operating income per common share 4.87 4.28 3.38 3.92 4.08 3.79 3.09
Annualized return on:
Average tangible assets 1.56 % 1.44 % 1.21 % 1.35 % 1.45 % 1.31 % 1.08 %
Average tangible common shareholders' equity 17.13 15.54 12.53 14.66 15.47 15.27 12.67
Efficiency ratio (b) 53.6 55.2 60.5 56.8 55.0 55.3 60.8
Balance sheet data
Average balances:
Total assets (c) $ 211,053 $ 210,261 $ 208,321 $ 211,853 $ 209,581 $ 211,981 $ 211,478
Total tangible assets (c) 202,533 201,733 199,791 203,317 201,031 203,420 202,906
Earning assets 190,920 190,535 189,116 193,106 191,366 193,676 193,135
Investment securities 36,559 35,335 34,480 33,679 31,023 29,695 28,587
Loans 136,527 135,407 134,844 135,723 134,751 134,588 133,796
Deposits 162,706 163,406 161,220 164,639 161,505 163,491 164,065
Borrowings 15,633 14,263 14,154 14,228 15,428 16,452 16,001
Common shareholders' equity (c) 26,189 26,272 26,604 26,313 26,160 25,340 25,008
Tangible common shareholders' equity (c) 17,669 17,744 18,074 17,777 17,610 16,779 16,436
At end of quarter:
Total assets (c) 211,277 211,584 210,321 208,105 211,785 208,855 215,137
Total tangible assets (c) 202,761 203,060 201,789 199,574 203,243 200,302 206,574
Earning assets 190,684 191,074 190,463 188,606 192,766 189,787 195,712
Investment securities 36,864 35,568 35,137 34,051 32,327 29,894 28,496
Loans 136,974 136,116 134,574 135,581 135,920 135,002 134,973
Deposits 163,426 164,453 165,409 161,095 164,554 159,910 167,196
Borrowings 14,987 14,451 12,069 13,665 14,188 16,083 16,245
Common shareholders' equity (c) 26,334 26,131 26,597 26,633 26,482 25,680 25,158
Tangible common shareholders' equity (c) 17,818 17,607 18,065 18,102 17,940 17,127 16,595
Equity per common share 170.43 166.94 163.62 160.90 159.38 153.57 150.90
Tangible equity per common share 115.31 112.48 111.13 109.36 107.97 102.42 99.54
__________________________________________________________________________________
(a)Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in Table 2.
(b)Excludes impact of merger-related expenses and net securities transactions.
(c)The difference between total assets and total tangible assets, and common shareholders' equity and tangible common shareholders' equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in Table 2.
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M&T Bank Corporation and Subsidiaries
Table 2
RECONCILIATION OF QUARTERLY GAAP TO NON-GAAP MEASURES
2025 Quarters 2024 Quarters
(Dollars in millions, except per share) Third Second First Fourth Third Second First
Income statement data
Net income
Net income $ 792 $ 716 $ 584 $ 681 $ 721 $ 655 $ 531
Amortization of core deposit and other intangible assets (a) 6 8 10 10 10 10 12
Net operating income $ 798 $ 724 $ 594 $ 691 $ 731 $ 665 $ 543
Earnings per common share
Diluted earnings per common share $ 4.82 $ 4.24 $ 3.32 $ 3.86 $ 4.02 $ 3.73 $ 3.02
Amortization of core deposit and other intangible assets (a) .05 .04 .06 .06 .06 .06 .07
Diluted net operating earnings per common share $ 4.87 $ 4.28 $ 3.38 $ 3.92 $ 4.08 $ 3.79 $ 3.09
Other expense
Other expense $ 1,363 $ 1,336 $ 1,415 $ 1,363 $ 1,303 $ 1,297 $ 1,396
Amortization of core deposit and other intangible assets (10) (9) (13) (13) (12) (13) (15)
Noninterest operating expense $ 1,353 $ 1,327 $ 1,402 $ 1,350 $ 1,291 $ 1,284 $ 1,381
Efficiency ratio
Noninterest operating expense (numerator) $ 1,353 $ 1,327 $ 1,402 $ 1,350 $ 1,291 $ 1,284 $ 1,381
Taxable-equivalent net interest income $ 1,773 $ 1,722 $ 1,707 $ 1,740 $ 1,739 $ 1,731 $ 1,692
Other income 752 683 611 657 606 584 580
Less: Gain (loss) on bank investment securities 1 - - 18 (2) (8) 2
Denominator $ 2,524 $ 2,405 $ 2,318 $ 2,379 $ 2,347 $ 2,323 $ 2,270
Efficiency ratio 53.6 % 55.2 % 60.5 % 56.8 % 55.0 % 55.3 % 60.8 %
Balance sheet data
Average assets
Average assets $ 211,053 $ 210,261 $ 208,321 $ 211,853 $ 209,581 $ 211,981 $ 211,478
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (79) (89) (92) (100) (113) (126) (140)
Deferred taxes 24 26 27 29 28 30 33
Average tangible assets $ 202,533 $ 201,733 $ 199,791 $ 203,317 $ 201,031 $ 203,420 $ 202,906
Average common equity
Average total equity $ 28,583 $ 28,666 $ 28,998 $ 28,707 $ 28,725 $ 27,745 $ 27,019
Preferred stock (2,394) (2,394) (2,394) (2,394) (2,565) (2,405) (2,011)
Average common equity 26,189 26,272 26,604 26,313 26,160 25,340 25,008
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (79) (89) (92) (100) (113) (126) (140)
Deferred taxes 24 26 27 29 28 30 33
Average tangible common equity $ 17,669 $ 17,744 $ 18,074 $ 17,777 $ 17,610 $ 16,779 $ 16,436
At end of quarter
Total assets
Total assets $ 211,277 $ 211,584 $ 210,321 $ 208,105 $ 211,785 $ 208,855 $ 215,137
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (74) (84) (93) (94) (107) (119) (132)
Deferred taxes 23 25 26 28 30 31 34
Total tangible assets $ 202,761 $ 203,060 $ 201,789 $ 199,574 $ 203,243 $ 200,302 $ 206,574
Total common equity
Total equity $ 28,728 $ 28,525 $ 28,991 $ 29,027 $ 28,876 $ 28,424 $ 27,169
Preferred stock (2,394) (2,394) (2,394) (2,394) (2,394) (2,744) (2,011)
Common equity 26,334 26,131 26,597 26,633 26,482 25,680 25,158
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (74) (84) (93) (94) (107) (119) (132)
Deferred taxes 23 25 26 28 30 31 34
Total tangible common equity $ 17,818 $ 17,607 $ 18,065 $ 18,102 $ 17,940 $ 17,127 $ 16,595
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(a)After any related tax effect.
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