M&T Bank Corporation (NYSE:MTB) announces first quarter 2025 results

, /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $584 million or $3.32 of diluted earnings per common share. (Dollars in millions, except per share data) 1Q25 4Q24 1Q24 Earnings Highlights Net interest income $ 1,695 $ 1,728 $ 1,680 Taxable-equivalent adjustment 12 12 12 Net interest income - taxable-equivalent 1,707 1,740 1,692 Provision for credit losses 130 140 200 Noninterest income 611 657 580 Noninterest expense 1,415 1,363 1,396 Net income 584 681 531 Net income available to common shareholders - diluted 547 644 505 Diluted earnings per common share 3.32 3.86 3.02 Return on average assets - annualized 1.14 % 1.28 % 1.01 % Return on average common shareholders' equity - annualized 8.36 9.75 8.14 Average Balance Sheet Total assets $ 208,321 $ 211,853 $ 211,478 Interest-bearing deposits at banks 19,695 23,602 30,647 Investment securities 34,480 33,679 28,587 Loans and leases 134,844 135,723 133,796 Deposits 161,220 164,639 164,065 Borrowings 14,154 14,228 16,001 Selected Ratios (Amounts expressed as a percent, except per share data) Net interest margin 3.66 % 3.58 % 3.52 % Efficiency ratio (1) 60.5 56.8 60.8 Net charge-offs to average total loans - annualized .34 .47 .42 Allowance for credit losses to total loans 1.63 1.61 1.62 Nonaccrual loans to total loans 1.14 1.25 1.71 Common equity Tier 1 ("CET1") capital ratio (2) 11.50 11.68 11.08 Common shareholders' equity per share $ 163.62 $ 160.90 $ 150.90 (1) A reconciliation of non-GAAP measures is included in the tables that accompany this release. (2) CET1 capital ratio at March 31, 2025 is estimated. Financial Highlights Net interest margin widened to 3.66% in the recent quarter as compared with 3.58% in the fourth quarter of 2024 reflecting lower levels of average earning assets. Lower funding costs associated with interest-bearing deposits and short-term borrowings were partially offset by a decline in the yields received on average interest-bearing deposits at banks and average loans and leases. Average loans and leases in the recent quarter reflect a lower average balance of commercial real estate loans, partially offset by modest increases in the average balances of commercial and industrial, residential real estate and consumer loans. First quarter average deposits reflect maturities of brokered time deposits and a seasonal decline in commercial customer deposits. The recent quarter decline in noninterest income reflects a distribution from M&T's investment in Bayview Lending Group, LLC ("BLG") and net gains on bank investment securities each in the final quarter of 2024. Noninterest expenses in the first quarter of 2025 reflect seasonal salaries and employee benefits expense of $110 million and higher outside data processing and software costs, partially offset by lower other costs of operations, which in the fourth quarter of 2024 included the redemption of certain of M&T's trust preferred obligations and vacated facility write-downs, partially offset by a pension-related distribution benefit. The level of nonaccrual loans improved to 1.14% of loans outstanding at March 31, 2025 from 1.25% at December 31, 2024. M&T repurchased 3,415,303 shares of its common stock for a total cost of $662 million, including the share repurchase excise tax, in the first quarter of 2025. Reflecting repurchases, M&T's CET1 capital ratio declined to an estimated 11.50% at March 31, 2025, representing an 18 basis-point decrease from 11.68% at December 31, 2024. Chief Financial Officer Commentary "I am pleased with the solid financial results we obtained in the first quarter. M&T's start to the year reflects the consistency and strength of our diversified banking model, healthy levels of capital and liquidity as well as improved credit results. We continue to invest in our people, technology and processes to better serve our customers. We remain steadfast in our goal to make a difference in the communities where we work and live." - Daryl N. Bible, M&T's Chief Financial Officer Contact: Investor Relations: Steve Wendelboe 716.842.5138 Media Relations: Frank Lentini 929.651.0447 Non-GAAP Measures (1) Change1Q25 vs. Change1Q25 vs. (Dollars in millions, except per share data) 1Q25 4Q24 4Q24 1Q24 1Q24 Net operating income $ 594 $ 691 -14 % $ 543 9 % Diluted net operating earnings per common share 3.38 3.92 -14 3.09 9 Annualized return on average tangible assets 1.21 % 1.35 % 1.08 % Annualized return on average tangible common equity 12.53 14.66 12.67 Efficiency ratio 60.5 56.8 60.8 Tangible equity per common share $ 111.13 $ 109.36 2 $ 99.54 12 ______________ (1) A reconciliation of non-GAAP measures is included in the tables that accompany this release. 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 and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature. Taxable-equivalent Net Interest Income Change1Q25 vs. Change1Q25 vs. (Dollars in millions) 1Q25 4Q24 4Q24 1Q24 1Q24 Average earning assets $ 189,116 $ 193,106 -2 % $ 193,135 -2 % Average interest-bearing liabilities 129,938 132,313 -2 131,451 -1 Net interest income - taxable-equivalent 1,707 1,740 -2 1,692 1 Yield on average earning assets 5.52 % 5.60 % 5.74 % Cost of interest-bearing liabilities 2.70 2.94 3.26 Net interest spread 2.82 2.66 2.48 Net interest margin 3.66 3.58 3.52 Taxable-equivalent net interest income decreased $33 million in the recent quarter as compared with the fourth quarter of 2024 largely due to two less calendar days in the recent quarter. Average interest-bearing deposits at banks decreased $3.9 billion and the yield received on those deposits declined 32 basis points. Average investment securities increased $801 million and the rates earned on those securities increased 12 basis points. Average loans and leases decreased $879 million and the yield received on those loans and leases declined 11 basis points. Average interest-bearing deposits decreased $2.3 billion and the rates paid on such deposits declined 27 basis points. Average borrowings declined $74 million and the rates paid on such borrowings decreased 3 basis points. Taxable-equivalent net interest income increased $15 million as compared with the year-earlier first quarter. Average interest-bearing deposits at banks decreased $11.0 billion and the yield received on those deposits declined 101 basis points. Average investment securities increased $5.9 billion and the yield earned those securities rose 70 basis points. Average loans and leases grew $1.0 billion while the yield received on those loans and leases decreased 26 basis points. Average interest-bearing deposits rose $334 million while the rates paid on those deposits declined 56 basis points. Average borrowings decreased $1.8 billion and the rates paid on such borrowings declined 24 basis points. Average Earning Assets Change1Q25 vs. Change1Q25 vs. (Dollars in millions) 1Q25 4Q24 4Q24 1Q24 1Q24 Interest-bearing deposits at banks $ 19,695 $ 23,602 -17 % $ 30,647 -36 % Trading account 97 102 -4 105 -8 Investment securities 34,480 33,679 2 28,587 21 Loans and leases Commercial and industrial 61,056 60,704 1 56,821 7 Real estate - commercial 26,259 27,896 -6 32,696 -20 Real estate - consumer 23,176 23,088 — 23,136 — Consumer 24,353 24,035 1 21,143 15 Total loans and leases 134,844 135,723 -1 133,796 1 Total earning assets $ 189,116 $ 193,106 -2 $ 193,135 -2 Average earning assets decreased $4.0 billion, or 2%, from the fourth quarter of 2024. Average interest-bearing deposits at banks decreased $3.9 billion reflecting a decline in average deposits, purchases of investment securities and share repurchases. Average investment securities increased $801 million primarily due to purchases of fixed rate agency mortgage-backed securities and U.S. Treasury securities during the first quarter of 2025 and the fourth quarter of 2024. Average loans and leases decreased $879 million primarily reflective of lower average commercial real estate loans of $1.6 billion resulting from lower origination activity and higher payoffs, partially offset by higher average commercial and industrial loans and leases of $352 million, average consumer loans of $318 million and average residential real estate loans of $88 million. Average earning assets decreased $4.0 billion, or 2%, from the first quarter of 2024. Average interest-bearing deposits at banks decreased $11.0 billion reflecting purchases of investment securities, loan growth, lower average balances of deposits and short-term borrowings and share repurchases. Average investment securities increased $5.9 billion primarily reflecting purchases of fixed rate agency mortgage-backed securities and U.S. Treasury securities since the beginning of 2024. Average loans and leases increased $1.0 billion predominantly due to higher average commercial and industrial loans and leases of $4.2 billion, reflecting growth spanning most industry types, and average consumer loans of $3.2 billion, reflecting recreational finance and automobile loan growth. Partially offsetting those increases was a $6.4 billion decline in average commercial real estate loans. Average Interest-bearing Liabilities Change1Q25 vs. Change1Q25 vs. (Dollars in millions) 1Q25 4Q24 4Q24 1Q24 1Q24 Interest-bearing deposits Savings and interest-checking deposits $ 101,564 $ 102,127 -1 % $ 94,867 7 % Time deposits 14,220 15,958 -11 20,583 -31 Total interest-bearing deposits 115,784 118,085 -2 115,450 — Short-term borrowings 2,869 2,563 12 6,228 -54 Long-term borrowings 11,285 11,665 -3 9,773 15 Total interest-bearing liabilities $ 129,938 $ 132,313 -2 $ 131,451 -1 Brokered savings and interest-checking deposits $ 9,991 $ 9,690 3 % $ 8,030 24 % Brokered time deposits 777 1,740 -55 5,193 -85 Total brokered deposits $ 10,768 $ 11,430 -6 $ 13,223 -19 Average interest-bearing liabilities decreased $2.4 billion, or 2%, in the recent quarter as compared with the fourth quarter of 2024. Average interest-bearing deposits declined $2.3 billion reflecting maturities of customer and brokered time deposits. Average interest-bearing liabilities declined $1.5 billion, or 1%, from the first quarter of 2024. Average interest-bearing deposits rose $334 million reflecting a $2.8 billion increase in average non-brokered deposits, partially offset by a $2.5 billion decrease in average brokered deposits. That decrease reflects maturities of brokered time deposits, partially offset by an increase in brokered savings and interest-checking deposits. Average borrowings decreased $1.8 billion reflecting lower average short-term borrowings from FHLB of New York, partially offset by issuances of senior notes and other long-term debt since the beginning of 2024. Provision for Credit Losses/Asset Quality Change 1Q25 vs. Change 1Q25 vs. (Dollars in millions) 1Q25 4Q24 4Q24 1Q24 1Q24 At end of quarter Nonaccrual loans $ 1,540 $ 1,690 -9 % $ 2,302 -33 % Real estate and other foreclosed assets 34 35 -3 38 -12 Total nonperforming assets 1,574 1,725 -9 2,340 -33 Accruing loans past due 90 days or more (1) 384 338 13 297 29 Nonaccrual loans as % of loans outstanding 1.14 % 1.25 % 1.71 % Allowance for credit losses $ 2,200 $ 2,184 1 $ 2,191 — Allowance for credit losses as % of loans outstanding 1.63 % 1.61 % 1.62 % For the period Provision for credit losses $ 130 $ 140 -7 $ 200 -35 Net charge-offs 114 160 -29 138 -18 Net charge-offs as % of average loans (annualized) .34 % .47 % .42 % ______________ (1) Predominantly government-guaranteed residential real estate loans. The provision for credit losses was $130 million in the first quarter of 2025 as compared with $140 million in the immediately preceding quarter and $200 million in the first quarter of 2024. The allowance for credit losses as a percentage of loans outstanding increased from 1.61% at December 31, 2024 to 1.63% at March 31, 2025 reflecting a modest deterioration in the macroeconomic forecasts. Net charge-offs totaled $114 million in 2025's first quarter as compared with $160 million in 2024's final quarter and $138 million in the year-earlier quarter, representing .34%, .47% and .42%, respectively, of average loans outstanding. Nonaccrual loans were $1.5 billion at March 31, 2025, $150 million lower than at December 31, 2024 and $762 million lower than at March 31, 2024. The lower level of nonaccrual loans at the recent quarter end as compared with December 31, 2024 and March 31, 2024 reflects decreases in commercial real estate and commercial and industrial nonaccrual loans. Noninterest Income Change1Q25 vs. Change1Q25 vs. (Dollars in millions) 1Q25 4Q24 4Q24 1Q24 1Q24 Mortgage banking revenues $ 118 $ 117 — % $ 104 13 % Service charges on deposit accounts 133 131 1 124 7 Trust income 177 175 1 160 11 Brokerage services income 32 30 3 29 10 Trading account and other non-hedging derivative gains 9 10 4 9 3 Gain (loss) on bank investment securities — 18 -100 2 -97 Other revenues from operations 142 176 -19 152 -6 Total $ 611 $ 657 -7 $ 580 5 Noninterest income in the first quarter of 2025 decreased $46 million, or 7%, from 2024's fourth quarter. The net gain on bank investment securities in the fourth quarter of 2024 reflected realized gains on the sales of Fannie Mae and Freddie Mac preferred securities, partially offset by losses on non-agency investment securities. Other revenues from operations decreased $34 million reflecting a $23 million distribution from M&T's investment in BLG in the fourth quarter of 2024 and lower loan syndication fees and merchant discount and credit card fees in the recent quarter. Noninterest income rose $31 million, or 5%, as compared with the first quarter of 2024. Mortgage banking revenues rose $14 million due to higher gains on sales of commercial mortgage loans and increased residential mortgage loan sub-servicing fees. Service charges on deposit accounts increased $9 million reflecting a rise in commercial service charges. Trust income increased $17 million predominantly due to higher sales and fees from the Company's global capital markets business and improved market performance in the wealth management business. Other revenues from operations decreased $10 million reflecting a $25 million distribution from M&T's investment in BLG in the first quarter of 2024, partially offset by higher letter of credit and other credit-related fees. Noninterest Expense Change1Q25 vs. Change1Q25 vs. (Dollars in millions) 1Q25 4Q24 4Q24 1Q24 1Q24 Salaries and employee benefits $ 887 $ 790 12 % $ 833 7 % Equipment and net occupancy 132 133 -1 129 3 Outside data processing and software 136 125 10 120 14 Professional and other services 84 80 3 85 -3 FDIC assessments 23 24 -2 60 -61 Advertising and marketing 22 30 -27 20 9 Amortization of core deposit and other intangible assets 13 13 3 15 -12 Other costs of operations 118 168 -30 134 -12 Total $ 1,415 $ 1,363 4 $ 1,396 1 Noninterest expense rose $52 million, or 4%, from the fourth quarter of 2024. Salaries and employee benefits expense increased $97 million, reflecting $110 million of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense, and the impact of annual merit increases, partially offset by two less working days in the first quarter of 2025. The increase in outside data processing and software costs largely reflects higher software licensing fees and maintenance expenses. Other costs of operations decreased $50 million reflecting a $20 million loss on the redemption of certain of M&T's trust preferred obligations and a $27 million write-down of two vacated office facilities each in the fourth quarter of 2024, and lower costs associated with the Company's supplemental executive retirement savings plan primarily related to market performance. Partially offsetting those favorable factors was a $12 million pension-related distribution benefit recognized in the fourth quarter of 2024. Noninterest expense increased $19 million, or 1%, from the first quarter of 2024. Salaries and employee benefits expense increased $54 million reflecting higher salaries expense from annual merit and other increases, higher average employee staffing levels and a rise in incentive compensation, including stock-based compensation expense. Outside data processing and software costs rose $16 million reflecting higher software licensing fees and maintenance expenses. The decline in FDIC assessments reflects the estimated incremental special assessment expense of $29 million recorded in the first quarter of 2024. Other costs of operations decreased $16 million reflecting lower costs associated with the Company's supplemental executive retirement savings plan in the recent quarter and losses on lease terminations related to certain vacated properties in the first quarter of 2024. Income Taxes The Company's effective income tax rate was 23.2% in the first quarter of 2025 as compared with 22.8% in the fourth quarter of 2024 and 20.0% in the first quarter of 2024. The first quarter of 2024 income tax expense reflects a net discrete tax benefit related to the resolution of a tax matter inherited from the acquisition of People's United Financial, Inc. Capital 1Q25 4Q24 1Q24 CET1 11.50 % (1) 11.68 % 11.08 % Tier 1 capital 13.03 (1) 13.21 12.38 Total capital 14.50 (1) 14.73 14.04 Tangible capital – common 8.95 9.07 8.03 ______________ (1) Capital ratios at March 31, 2025 are estimated. M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $223 million and $36 million, respectively, for the quarter ended March 31, 2025. The CET1 capital ratio for M&T was estimated at 11.50% as of March 31, 2025. M&T's total risk-weighted assets at March 31, 2025 are estimated to be $156.2 billion. M&T repurchased 3,415,303 shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $192.06 resulting in a total cost, including the share repurchase excise tax, of $662 million, compared with 957,988 shares at an average cost per share of $206.70 and a total cost, including the share repurchase excise tax, of $200 million in fourth quarter of 2024. No share repurchases occurred in the first quarter of 2024. Conference Call Investors will have an opportunity to listen to M&T's conference call to discuss first quarter financial results today at 8:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ125. The conference call will be webcast live through M&T's website at https://ir.mtb.com/events-presentations. A replay of the call will be available through Monday April 21, 2025 by calling (800) 695-1624 or (402) 530-9026 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/events-presentations. About M&T M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com. Forward-Looking Statements This news release and related conference call may 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 M&T's business, and management's beliefs and assumptions. Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T'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 M&T'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 and developments in the financial services industry, including industry conditions; 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 M&T'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-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries 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 outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; 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 M&T and its subsidiaries do business, and other factors. M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2024, 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 M&T assumes no duty and does not undertake to update forward-looking statements. Financial Highlights Three months ended March 31, (Dollars in millions, except per share, shares in thousands) 2025 2024 Change Performance Net income $ 584 $ 531 10 % Net income available to common shareholders 547 505 8 Per common share: Basic earnings 3.33 3.04 10 Diluted earnings 3.32 3.02 10 Cash dividends 1.35 1.30 4 Common shares outstanding: Average - diluted (1) 165,047 167,084 -1 Period end (2) 162,552 166,724 -3 Return on (annualized): Average total assets 1.14 % 1.01 % Average common shareholders' equity 8.36 8.14 Taxable-equivalent net interest income $ 1,707 $ 1,692 1 Yield on average earning assets 5.52 % 5.74 % Cost of interest-bearing liabilities 2.70 3.26 Net interest spread 2.82 2.48 Contribution of interest-free funds .84 1.04 Net interest margin 3.66 3.52 Net charge-offs to average total net loans (annualized) .34 .42 Net operating results (3) Net operating income $ 594 $ 543 9 Diluted net operating earnings per common share 3.38 3.09 9 Return on (annualized): Average tangible assets 1.21 % 1.08 % Average tangible common equity 12.53 12.67 Efficiency ratio 60.5 60.8 At March 31, Loan quality 2025 2024 Change Nonaccrual loans $ 1,540 $ 2,302 -33 % Real estate and other foreclosed assets 34 38 -12 Total nonperforming assets $ 1,574 $ 2,340 -33 Accruing loans past due 90 days or more (4) $ 384 $ 297 29 Government guaranteed loans included in totals above: Nonaccrual loans $ 69 $ 62 12 Accruing loans past due 90 days or more 368 244 50 Nonaccrual loans to total loans 1.14 % 1.71 % Allowance for credit losses to total loans 1.63 1.62 Additional information Period end common stock price $ 178.75 $ 145.44 23 Domestic banking offices 955 958 — Full time equivalent employees 22,291 21,927 2 ______________ (1) Includes common stock equivalents. (2) Includes common stock issuable under deferred compensation plans. (3) 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. Reconciliations of net income with net operating income appear herein. (4) Predominantly government-guaranteed residential real estate loans. Financial Highlights, Five Quarter Trend Three months ended March 31, December 31, September 30, June 30, March 31, (Dollars in millions, except per share, shares in thousands) 2025 2024 2024 2024 2024 Performance Net income $ 584 $ 681 $ 721 $ 655 $ 531 Net income available to common shareholders 547 644 674 626 505 Per common share: Basic earnings 3.33 3.88 4.04 3.75 3.04 Diluted earnings 3.32 3.86 4.02 3.73 3.02 Cash dividends 1.35 1.35 1.35 1.35 1.30 Common shares outstanding: Average - diluted (1) 165,047 166,969 167,567 167,659 167,084 Period end (2) 162,552 165,526 166,157 167,225 166,724 Return on (annualized): Average total assets 1.14 % 1.28 % 1.37 % 1.24 % 1.01 % Average common shareholders' equity 8.36 9.75 10.26 9.95 8.14 Taxable-equivalent net interest income $ 1,707 $ 1,740 $ 1,739 $ 1,731 $ 1,692 Yield on average earning assets 5.52 % 5.60 % 5.82 % 5.82 % 5.74 % Cost of interest-bearing liabilities 2.70 2.94 3.22 3.26 3.26 Net interest spread 2.82 2.66 2.60 2.56 2.48 Contribution of interest-free funds .84 .92 1.02 1.03 1.04 Net interest margin 3.66 3.58 3.62 3.59 3.52 Net charge-offs to average total net loans (annualized) .34 .47 .35 .41 .42 Net operating results (3) Net operating income $ 594 $ 691 $ 731 $ 665 $ 543 Diluted net operating earnings per common share 3.38 3.92 4.08 3.79 3.09 Return on (annualized): Average tangible assets 1.21 % 1.35 % 1.45 % 1.31 % 1.08 % Average tangible common equity 12.53 14.66 15.47 15.27 12.67 Efficiency ratio 60.5 56.8 55.0 55.3 60.8 March 31, December 31, September 30, June 30, March 31, Loan quality 2025 2024 2024 2024 2024 Nonaccrual loans $ 1,540 $ 1,690 $ 1,926 $ 2,024 $ 2,302 Real estate and other foreclosed assets 34 35 37 33 38 Total nonperforming assets $ 1,574 $ 1,725 $ 1,963 $ 2,057 $ 2,340 Accruing loans past due 90 days or more (4) $ 384 $ 338 $ 288 $ 233 $ 297 Government guaranteed loans included in totals above: Nonaccrual loans $ 69 $ 69 $ 69 $ 64 $ 62 Accruing loans past due 90 days or more 368 318 269 215 244 Nonaccrual loans to total loans 1.14 % 1.25 % 1.42 % 1.50 % 1.71 % Allowance for credit losses to total loans 1.63 1.61 1.62 1.63 1.62 Additional information Period end common stock price $ 178.75 $ 188.01 $ 178.12 $ 151.36 $ 145.44 Domestic banking offices 955 955 957 957 958 Full time equivalent employees 22,291 22,101 21,986 22,110 21,927 ______________ (1) Includes common stock equivalents. (2) Includes common stock issuable under deferred compensation plans. (3) 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. Reconciliations of net income with net operating income appear herein. (4) Predominantly government-guaranteed residential real estate loans. Condensed Consolidated Statement of Income Three months ended March 31, (Dollars in millions) 2025 2024 Change Interest income $ 2,560 $ 2,745 -7 % Interest expense 865 1,065 -19 Net interest income 1,695 1,680 1 Provision for credit losses 130 200 -35 Net interest income after provision for credit losses 1,565 1,480 6 Other income Mortgage banking revenues 118 104 13 Service charges on deposit accounts 133 124 7 Trust income 177 160 11 Brokerage services income 32 29 10 Trading account and other non-hedging derivative gains 9 9 3 Gain (loss) on bank investment securities — 2 -97 Other revenues from operations 142 152 -6 Total other income 611 580 5 Other expense Salaries and employee benefits 887 833 7 Equipment and net occupancy 132 129 3 Outside data processing and software 136 120 14 Professional and other services 84 85 -3 FDIC assessments 23 60 -61 Advertising and marketing 22 20 9 Amortization of core deposit and other intangible assets 13 15 -12 Other costs of operations 118 134 -12 Total other expense 1,415 1,396 1 Income before taxes 761 664 15 Income taxes 177 133 33 Net income $ 584 $ 531 10 % Condensed Consolidated Statement of Income, Five Quarter Trend Three months ended March 31, December 31, September 30, June 30, March 31, (Dollars in millions) 2025 2024 2024 2024 2024 Interest income $ 2,560 $ 2,707 $ 2,785 $ 2,789 $ 2,745 Interest expense 865 979 1,059 1,071 1,065 Net interest income 1,695 1,728 1,726 1,718 1,680 Provision for credit losses 130 140 120 150 200 Net interest income after provision for credit losses 1,565 1,588 1,606 1,568 1,480 Other income Mortgage banking revenues 118 117 109 106 104 Service charges on deposit accounts 133 131 132 127 124 Trust income 177 175 170 170 160 Brokerage services income 32 30 32 30 29 Trading account and other non-hedging derivative gains 9 10 13 7 9 Gain (loss) on bank investment securities — 18 (2) (8) 2 Other revenues from operations 142 176 152 152 152 Total other income 611 657 606 584 580 Other expense Salaries and employee benefits 887 790 775 764 833 Equipment and net occupancy 132 133 125 125 129 Outside data processing and software 136 125 123 124 120 Professional and other services 84 80 88 91 85 FDIC assessments 23 24 25 37 60 Advertising and marketing 22 30 27 27 20 Amortization of core deposit and other intangible assets 13 13 12 13 15 Other costs of operations 118 168 128 116 134 Total other expense 1,415 1,363 1,303 1,297 1,396 Income before taxes 761 882 909 855 664 Income taxes 177 201 188 200 133 Net income $ 584 $ 681 $ 721 $ 655 $ 531 Condensed Consolidated Balance Sheet March 31, (Dollars in millions) 2025 2024 Change ASSETS Cash and due from banks $ 2,109 $ 1,695 24 % Interest-bearing deposits at banks 20,656 32,144 -36 Trading account 96 99 -3 Investment securities 35,137 28,496 23 Loans and leases: Commercial and industrial 60,596 57,897 5 Real estate - commercial 25,867 32,416 -20 Real estate - consumer 23,284 23,076 1 Consumer 24,827 21,584 15 Total loans and leases 134,574 134,973 — Less: allowance for credit losses 2,200 2,191 — Net loans and leases 132,374 132,782 — Goodwill 8,465 8,465 — Core deposit and other intangible assets 93 132 -30 Other assets 11,391 11,324 1 Total assets $ 210,321 $ 215,137 -2 % LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $ 49,051 $ 50,578 -3 % Interest-bearing deposits 116,358 116,618 — Total deposits 165,409 167,196 -1 Short-term borrowings 1,573 4,795 -67 Long-term borrowings 10,496 11,450 -8 Accrued interest and other liabilities 3,852 4,527 -15 Total liabilities 181,330 187,968 -4 Shareholders' equity: Preferred 2,394 2,011 19 Common 26,597 25,158 6 Total shareholders' equity 28,991 27,169 7 Total liabilities and shareholders' equity $ 210,321 $ 215,137 -2 % Condensed Consolidated Balance Sheet, Five Quarter Trend March 31, December 31, September 30, June 30, March 31, (Dollars in millions) 2025 2024 2024 2024 2024 ASSETS Cash and due from banks $ 2,109 $ 1,909 $ 2,216 $ 1,778 $ 1,695 Interest-bearing deposits at banks 20,656 18,873 24,417 24,792 32,144 Trading account 96 101 102 99 99 Investment securities 35,137 34,051 32,327 29,894 28,496 Loans and leases Commercial and industrial 60,596 61,481 61,012 60,027 57,897 Real estate - commercial 25,867 26,764 28,683 29,532 32,416 Real estate - consumer 23,284 23,166 23,019 23,003 23,076 Consumer 24,827 24,170 23,206 22,440 21,584 Total loans and leases 134,574 135,581 135,920 135,002 134,973 Less: allowance for credit losses 2,200 2,184 2,204 2,204 2,191 Net loans and leases 132,374 133,397 133,716 132,798 132,782 Goodwill 8,465 8,465 8,465 8,465 8,465 Core deposit and other intangible assets 93 94 107 119 132 Other assets 11,391 11,215 10,435 10,910 11,324 Total assets $ 210,321 $ 208,105 $ 211,785 $ 208,855 $ 215,137 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $ 49,051 $ 46,020 $ 47,344 $ 47,729 $ 50,578 Interest-bearing deposits 116,358 115,075 117,210 112,181 116,618 Total deposits 165,409 161,095 164,554 159,910 167,196 Short-term borrowings 1,573 1,060 2,605 4,764 4,795 Long-term borrowings 10,496 12,605 11,583 11,319 11,450 Accrued interest and other liabilities 3,852 4,318 4,167 4,438 4,527 Total liabilities 181,330 179,078 182,909 180,431 187,968 Shareholders' equity: Preferred 2,394 2,394 2,394 2,744 2,011 Common 26,597 26,633 26,482 25,680 25,158 Total shareholders' equity 28,991 29,027 28,876 28,424 27,169 Total liabilities and shareholders' equity $ 210,321 $ 208,105 $ 211,785 $ 208,855 $ 215,137 Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates Three months ended Change in balance March 31, December 31, March 31, March 31, 2025 from 2025 2024 2024 December 31, March 31, (Dollars in millions) Balance Rate Balance Rate Balance Rate 2024 2024 ASSETS Interest-bearing deposits at banks $ 19,695 4.48 % $ 23,602 4.80 % $ 30,647 5.49 % -17 % -36 % Trading account 97 3.42 102 3.37 105 3.42 -4 -8 Investment securities 34,480 4.00 33,679 3.88 28,587 3.30 2 21 Loans and leases: Commercial and industrial 61,056 6.36 60,704 6.56 56,821 6.99 1 7 Real estate - commercial 26,259 6.16 27,896 6.25 32,696 6.36 -6 -20 Real estate - consumer 23,176 4.44 23,088 4.45 23,136 4.28 — — Consumer 24,353 6.57 24,035 6.65 21,143 6.54 1 15 Total loans and leases 134,844 6.06 135,723 6.17 133,796 6.32 -1 1 Total earning assets 189,116 5.52 193,106 5.60 193,135 5.74 -2 -2 Goodwill 8,465 8,465 8,465 — — Core deposit and other intangible assets 92 100 140 -8 -34 Other assets 10,648 10,182 9,738 5 9 Total assets $ 208,321 $ 211,853 $ 211,478 -2 % -1 % LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing deposits Savings and interest-checking deposits $ 101,564 2.20 % $ 102,127 2.44 % $ 94,867 2.61 % -1 % 7 % Time deposits 14,220 3.54 15,958 3.95 20,583 4.41 -11 -31 Total interest-bearing deposits 115,784 2.37 118,085 2.64 115,450 2.93 -2 — Short-term borrowings 2,869 4.52 2,563 4.93 6,228 5.42 12 -54 Long-term borrowings 11,285 5.65 11,665 5.57 9,773 5.81 -3 15 Total interest-bearing liabilities 129,938 2.70 132,313 2.94 131,451 3.26 -2 -1 Noninterest-bearing deposits 45,436 46,554 48,615 -2 -7 Other liabilities 3,949 4,279 4,393 -8 -10 Total liabilities 179,323 183,146 184,459 -2 -3 Shareholders' equity 28,998 28,707 27,019 1 7 Total liabilities and shareholders' equity $ 208,321 $ 211,853 $ 211,478 -2 % -1 % Net interest spread 2.82 2.66 2.48 Contribution of interest-free funds .84 .92 1.04 Net interest margin 3.66 % 3.58 % 3.52 % Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend Three months ended March 31, December 31, September 30, June 30, March 31, 2025 2024 2024 2024 2024 (Dollars in millions, except per share) Income statement data Net income Net income $ 584 $ 681 $ 721 $ 655 $ 531 Amortization of core deposit and other intangible assets (1) 10 10 10 10 12 Net operating income $ 594 $ 691 $ 731 $ 665 $ 543 Earnings per common share Diluted earnings per common share $ 3.32 $ 3.86 $ 4.02 $ 3.73 $ 3.02 Amortization of core deposit and other intangible assets (1) .06 .06 .06 .06 .07 Diluted net operating earnings per common share $ 3.38 $ 3.92 $ 4.08 $ 3.79 $ 3.09 Other expense Other expense $ 1,415 $ 1,363 $ 1,303 $ 1,297 $ 1,396 Amortization of core deposit and other intangible assets (13) (13) (12) (13) (15) Noninterest operating expense $ 1,402 $ 1,350 $ 1,291 $ 1,284 $ 1,381 Efficiency ratio Noninterest operating expense (numerator) $ 1,402 $ 1,350 $ 1,291 $ 1,284 $ 1,381 Taxable-equivalent net interest income $ 1,707 $ 1,740 $ 1,739 $ 1,731 $ 1,692 Other income 611 657 606 584 580 Less: Gain (loss) on bank investment securities — 18 (2) (8) 2 Denominator $ 2,318 $ 2,379 $ 2,347 $ 2,323 $ 2,270 Efficiency ratio 60.5 % 56.8 % 55.0 % 55.3 % 60.8 % Balance sheet data Average assets Average assets $ 208,321 $ 211,853 $ 209,581 $ 211,981 $ 211,478 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (92) (100) (113) (126) (140) Deferred taxes 27 29 28 30 33 Average tangible assets $ 199,791 $ 203,317 $ 201,031 $ 203,420 $ 202,906 Average common equity Average total equity $ 28,998 $ 28,707 $ 28,725 $ 27,745 $ 27,019 Preferred stock (2,394) (2,394) (2,565) (2,405) (2,011) Average common equity 26,604 26,313 26,160 25,340 25,008 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (92) (100) (113) (126) (140) Deferred taxes 27 29 28 30 33 Average tangible common equity $ 18,074 $ 17,777 $ 17,610 $ 16,779 $ 16,436 At end of quarter Total assets Total assets $ 210,321 $ 208,105 $ 211,785 $ 208,855 $ 215,137 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (93) (94) (107) (119) (132) Deferred taxes 26 28 30 31 34 Total tangible assets $ 201,789 $ 199,574 $ 203,243 $ 200,302 $ 206,574 Total common equity Total equity $ 28,991 $ 29,027 $ 28,876 $ 28,424 $ 27,169 Preferred stock (2,394) (2,394) (2,394) (2,744) (2,011) Common equity 26,597 26,633 26,482 25,680 25,158 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (93) (94) (107) (119) (132) Deferred taxes 26 28 30 31 34 Total tangible common equity $ 18,065 $ 18,102 $ 17,940 $ 17,127 $ 16,595 ______________ (1) After any related tax effect. 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M&T Bank Corporation (NYSE:MTB) announces first quarter 2025 results

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