d93b6b2bb2a5151fa0ff12887549f0e30266bfad6790fdc02cfdef4700ee70ca

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

SG&A (USD, millions)

R&D (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Net Income (USD, millions)

EPS - Basic (USD/share)

EPS - Diluted (USD/share)

02974aa153ee11afa80fae5181a3c8e7564b7fbdeedc0370d38bdbcca78d83c8

MTB is a financial services company that operates through three main business segments, providing a range of banking and financial services. The company offers credit products and banking services to commercial customers, as well as deposit and credit services to consumers and small businesses **[0001628280-24-045198_mtb-20240930.htm:93]** **[0000950170-24-017990_mtb-20231231.htm:241]**. Additionally, MTB provides trustee, agency, investment management, and administrative services for corporations and high net worth individuals **[0000950170-24-017990_mtb-20231231.htm:242]** **[0000950170-24-017990_mtb-20231231.htm:241]**. Interest on loans and deposits at banks are significant sources of income, contributing to a diversified revenue base **[0000950170-24-017990_mtb-20231231.htm:10]**.

1. **Commercial Bank** - Provides credit products and banking services to middle-market and large commercial customers, including commercial lending, leasing, and real estate loans, as well as deposit products and cash management services **[0001628280-24-045198_mtb-20240930.htm:93]** **[0000950170-24-017990_mtb-20231231.htm:241]**.
2. **Retail Bank** - Offers services to consumers and small businesses, such as deposit products, credit services including auto and home equity loans, and residential mortgage loans **[0000950170-24-017990_mtb-20231231.htm:241]**.
3. **Institutional Services and Wealth Management** - Provides trustee, agency, investment management, and administrative services for corporations and high net worth individuals, including investment products like mutual funds and annuities **[0000950170-24-017990_mtb-20231231.htm:242]** **[0000950170-24-017990_mtb-20231231.htm:241]**.

5b8c370e8ae7c23df3ab80ecae13e6c1220e6ab4a7daeebd8f034977d64c8cbe

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Net Interest Spread (%) | **3.62%** | **3.30%** | **3.03%** | **2.79%** | **2.56%** | **2.48%** | **2.56%** | **2.60%** **[0001628280-24-042977_ex991release3q24.htm:1]** |
| Yield on Earning Assets (%) | N/A | **5.16%** | **5.46%** | **5.62%** | **5.73%** | **5.74%** | **5.82%** | **5.82%** |
| Rate Paid on Interest-Bearing Liabilities (%) | **0.98%** | **1.86%** | **2.43%** | **2.83%** | **3.17%** | **3.26%** | **3.26%** | **3.22%** |
| Net Interest-Free Funds ($ Billion) | N/A | **$72.9** | **$67.7** | **$66.0** | **$67.3** | **$61.7** | **$61.5** | **$60.6** |
| Residential Mortgage Banking Revenues ($ Million) | **$54** | **$55** | **$77** | **$75.9** | **$112** | **$78** | **$76** | **$75** |
| Loans Serviced for Others ($ Billion) | N/A | **$139.5** | **$153.7** | N/A | **$183.372** | **$28.7** | **$29.468** | **$29.837** |
| Loans Sub-Serviced for Others ($ Billion) | N/A | **$98.0** | **$112.8** | **$114.599** | **$115.3** | **$111.964** | **$112.486** | **$4.044** |
| Trust Assets Under Management ($ Million) | N/A | **$161.5** | **$64.4** | **$62.769** | **$63.963** | **$65.191** | **$65.274** | **$66.739** |
| Proprietary Mutual Funds ($ Million) | N/A | N/A | **$14.1** | N/A | **$14.772** | **$15.280** | **$14.139** | N/A |
| Total Assets Under Management ($ Billion) | **$200.7** | **$203.0** | **$78.5** | **$205.791** | **$78.735** | **$80.471** | **$79.413** | **$81.831** |

4a78b48d7693d1bcdcece82169eb71fc1fa4e4c587a98140c398d4da0a1c7a61

Cash and Cash Equivalents (USD, millions)

Property, Plant, and Equipment (PP&E) (USD, millions)

Goodwill (USD, millions)

Intangible Assets (USD, millions)

Short-term Debt (USD, millions)

Long-term Debt (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

11455f0c71c1cacc5b7a9033ff37f89b49fc0528f467f2812185fa0f01c6c44c

| Segment/Period                                      | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Commercial Bank** ($ million)                     | N/A     | 507.0  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 461.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 453.3  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | 699.0  **[0000950170-24-052773_mtb-20240331.htm:85]**  | 717.0  **[0001628280-24-034695_mtb-20240630.htm:92]**  | 723.0  **[0001628280-24-045198_mtb-20240930.htm:46]**  |
| **Retail Bank** ($ million)                         | N/A     | 831.8  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 865.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 876.0  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | 1,268.0  **[0000950170-24-052773_mtb-20240331.htm:87]**  | 1,294.0  **[0001628280-24-034695_mtb-20240630.htm:92]**  | 1,292.0  **[0001628280-24-045198_mtb-20240930.htm:46]**  |
| **Institutional Services & Wealth Management** ($ million) | N/A     | N/A     | N/A     | N/A     | N/A     | 377.0  **[0000950170-24-052773_mtb-20240331.htm:89]**  | 401.0  **[0001628280-24-034695_mtb-20240630.htm:92]**  | 389.0  **[0001628280-24-045198_mtb-20240930.htm:46]**  |
| **Business Banking** ($ million)                    | N/A     | 273.6  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 277.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 291.8  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | N/A     | N/A     | N/A     |
| **Commercial Real Estate** ($ million)              | N/A     | 225.7  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 217.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 231.3  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | N/A     | N/A     | N/A     |
| **Discretionary Portfolio** ($ million)             | N/A     | (33.4)  **[0000950170-23-018233_mtb-20230331.htm:49]**  | (24.0)  **[0000950170-23-039814_mtb-20230630.htm:58]**  | (20.7)  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | N/A     | N/A     | N/A     |
| **Residential Mortgage Banking** ($ million)        | N/A     | 77.7  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 103.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 100.4  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | N/A     | N/A     | N/A     |
| **All Other** ($ million)                           | N/A     | 523.0  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 704.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 402.7  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | (84.0)  **[0000950170-24-052773_mtb-20240331.htm:90]**  | (110.0)  **[0001628280-24-034695_mtb-20240630.htm:92]**  | (72.0)  **[0001628280-24-045198_mtb-20240930.htm:46]**  |
| **Total Revenue** ($ million)                       | N/A     | 2,405.4  **[0000950170-23-018233_mtb-20230331.htm:49]**  | 2,602.0  **[0000950170-23-039814_mtb-20230630.htm:58]**  | 2,334.9  **[0000950170-23-059364_mtb-20230930.htm:61]**  | N/A     | 2,260.0  **[0000950170-24-052773_mtb-20240331.htm:40]**  | 2,302.0  **[0001628280-24-032163_earningspresentation_2q2.htm:5]**  | 2,332.0  **[0001628280-24-045198_mtb-20240930.htm:46]**  |

0e725619c9db221f580bed1460a05e52041a05070d6a6f943de6bbb0f133e938

b8a2fa1be8356768047d7169eaafa7eebd698c1ce698c02bfce1286b562302af

1. Given that you anticipate runoff in your CRE portfolio for at least a couple more quarters and don't expect CRE balances to grow until mid-next year, how do you plan to offset the potential impact on loan growth and net interest income, especially if CRE pipelines don't build as expected?  **[MTB_3402957_13]** 

2. You mentioned that your deposit betas on the way up peaked at about 55% and you expect a downward beta of at least 40% in the fourth quarter; how confident are you that deposit costs will reprice down as quickly as anticipated, and what are the risks that deposit betas remain higher, potentially compressing your net interest margin?  **[MTB_3402957_10]** 

3. With the shift in your loan mix towards consumer lending, which may have higher yields but also higher net charge-offs, how do you plan to manage the potential increase in credit losses, and are you comfortable with the current level of loan loss reserves given this mix change?  **[MTB_3402957_21]** 

4. Considering that your net interest income and margin are expected to improve due to roll-on and roll-off rates on fixed-rate assets, as well as hedging activities, what are the key risks that could prevent you from achieving these positive projections, especially in a volatile interest rate environment?  **[MTB_3402957_6]** 

5. As you plan to return more capital to shareholders in 2025 and potentially increase share repurchases, how do you balance this with maintaining a strong CET1 ratio above 11%, especially if economic conditions deteriorate or regulatory capital requirements change with the final Basel III implementation?  **[MTB_3402957_5]** 

75822158fcc7ce85011155183d2b00b1672cec88e6eb27ea1b8c652ec6476bfb

Net Interest Spread (%)

Yield on Earning Assets (%)

Rate Paid on Interest-Bearing Liabilities (%)

Net Interest-Free Funds ($ Billion)

Residential Mortgage Banking Revenues ($ Million)

Loans Serviced for Others ($ Billion)

Loans Sub-Serviced for Others ($ Billion)

Trust Assets Under Management ($ Million)

Proprietary Mutual Funds ($ Million)

093e6f0b39d65e0ae1391d7179ff136fe92eaacd011d22490cd50723ffab5779

93d780b817a2a1cae7ff8096d5af729220e966a2589f56d88ac64b1b89518825

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** Q4 2024
- **Guidance:**
  1. **Net Interest Income (NII):** At least **$1.73 billion** for Q4 2024  **[MTB_3402957_4]** .
  2. **Net Interest Margin (NIM):** Low **3.60%** range for Q4 2024  **[MTB_3402957_22]** .
  3. **Loan Growth:** Average total loans approximately **$136 billion**  **[MTB_3402957_4]** .
  4. **Deposits:** At least **$160 billion**  **[MTB_3402957_4]** .
  5. **Interest-bearing Deposit Beta:** Approximately **40%**  **[MTB_3402957_4]** .
  6. **Security Balances:** Expected to grow  **[MTB_3402957_4]** .
  7. **Noninterest Income:** About **$600 million**  **[MTB_3402957_4]** .
  8. **Noninterest Expenses:** About **$1.32 billion**  **[MTB_3402957_4]** .
  9. **Net Charge-offs:** Near **40 basis points** for the full year  **[MTB_3402957_4]** .
  10. **Tax Rate:** About **24.25%**  **[MTB_3402957_4]** .
  11. **Preferred Dividends:** Approximately **$36 million**  **[MTB_3402957_4]** .
  12. **Share Repurchase:** **$200 million**  **[MTB_3402957_4]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** Remainder of 2024
- **Guidance:**
  1. **Net Interest Income (NII):** **$6.85 billion to $6.9 billion** for FY 2024  **[MTB_3393422_4]** .
  2. **Balance Sheet:** Total average assets closer to **$208 billion**  **[MTB_3393422_4]** .
  3. **Fees and Expenses:** Fees **$2.3 billion to $2.4 billion**; Expenses **$5.25 billion to $5.3 billion**  **[MTB_3393422_4]** .
  4. **Net Charge-offs:** Near **40 basis points** for the full year  **[MTB_3393422_4]** .
  5. **Tax Rate:** **24% to 24.5%**  **[MTB_3393422_4]** .
  6. **Preferred Dividends:** **$47 million** in Q3 and **$36 million** in Q4  **[MTB_3393422_4]** .
  7. **Share Repurchase:** **$200 million per quarter**  **[MTB_3393422_5]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Net Interest Income (NII):** **$6.8 billion** with possible upside  **[MTB_3379817_4]** .
  2. **Net Charge-Offs:** Near **40 basis points**  **[MTB_3379817_4]** .
  3. **Tax Rate:** **24% to 24.5%**  **[MTB_3379817_4]** .
  4. **Capital:** CET1 ratio above **11%**  **[MTB_3379817_4]** .
  5. **Expenses:** Unchanged, excluding FDIC special assessment  **[MTB_3379817_4]** .
  6. **Share Repurchases:** On hold, reassessment planned after Q2  **[MTB_3379817_4]** .

### Q4 2023 Earnings Call
- **Issued Period:** Q4 2023
- **Guided Period:** N/A
- **Guidance:** The documents do not contain information about the Q4 2023 earnings call for M&T Bank (MTB). Therefore, I cannot provide the guidance they may have provided in that call.

c4b64448061047cadd531440382f83afb73ff5069b8de15b953aee6383a0221d

- Commercial and other banks and thrifts  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Private credit funds  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Insurance companies  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Mutual funds  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Hedge funds  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Securities brokerage firms  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Financial technology companies  **[0000950170-24-017990_mtb-20231231.htm:63]** 
- Credit unions  **[0000950170-24-017990_mtb-20231231.htm:41]** 
- Personal loan companies  **[0000950170-24-017990_mtb-20231231.htm:41]** 
- Sales finance companies  **[0000950170-24-017990_mtb-20231231.htm:41]** 
- Leasing companies  **[0000950170-24-017990_mtb-20231231.htm:41]** 
- Wealth and investment advisory firms  **[0000950170-24-017990_mtb-20231231.htm:41]** 

2496850b9feabe4507207d8a1bc693dce113eec6b30591856c076355d4001c31

| Name             | Position                                              | Start Date | Short Bio                                                                                                                                                                                                 |
|------------------|-------------------------------------------------------|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Renée F. Jones   | Chairman of the Board and Chief Executive Officer     | 2017       | Renée F. Jones has been the **Chairman of the Board and Chief Executive Officer** of M&T Bank Corporation since December 2017. He joined M&T Bank in 1992 and has over 30 years of experience in banking  **[0000950170-24-017990_mtb-20231231.htm:83]** **[0001193125-24-058283_d743133ddef14a.htm:16]** **[0001193125-23-062138_d437251ddef14a.htm:19]** .                             |
| Kevin J. Pearson | Vice Chairman                                         | 2020       | Kevin J. Pearson is the **Vice Chairman** of M&T Bank Corporation, a position he has held since 2020. He began his career with M&T Bank in 1989 and has held various management positions  **[0000950170-24-017990_mtb-20231231.htm:83]** .                                                   |
| Daryl N. Bible   | Senior Executive Vice President and Chief Financial Officer | 2023       | Daryl N. Bible is the **Senior Executive Vice President and Chief Financial Officer** of M&T Bank Corporation since 2023. He previously served as CFO at Truist Financial Corporation and BB&T  **[0000950170-24-017990_mtb-20231231.htm:83]** **[MTB_3407464_0]** .                                           |
| Robert J. Bojdak | Senior Executive Vice President and Chief Credit Officer | 2004       | Robert J. Bojdak is a **Senior Executive Vice President and Chief Credit Officer** at M&T Bank, a position he has held since 2004. He joined M&T Bank in 2002 and is responsible for managing the bank's loan portfolio risk  **[0000950170-24-017990_mtb-20231231.htm:83]** .                |

e0fba91f5227bd140e4aca0bf1721be8e9f05e0bd94b9cfac24af7e16990033c

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **July 2022**  **[0001628280-24-045198_mtb-20240930.htm:115]**   |
| End Date/Duration        | **N/A**            |
| Total additional amount  | **$3.0 billion**  **[0001628280-24-045198_mtb-20240930.htm:115]**  |
| Remaining authorization amount | **$1.0 billion**  **[0001628280-24-045198_mtb-20240930.htm:115]**  |
| Details                  | Manage capital and liquidity requirements, support future loan growth, and manage other balance sheet activities.  **[0000950170-23-059364_mtb-20230930.htm:117]** **[0000950170-23-039814_mtb-20230630.htm:115]** **[0000950170-23-018233_mtb-20230331.htm:122]**  |

41c0ee7ce4ee8461f36a48fde57599ec216722b987dd1dcecf5d4e7950802ee4

**Annual guidance for FY 2025:**
- **Net Interest Income (NII)**: $7.1 billion to $7.2 billion  **[MTB_3412699_4]**  (no prior guidance)  
- **Net Interest Margin (NIM)**: mid-360s basis points  **[MTB_3412699_4]**  (no prior guidance)  
- **Loans and Leases**: $137 billion to $139 billion  **[MTB_3412699_4]**  (no prior guidance)  
- **Commercial Real Estate (CRE) balances**: Decline in the first half of 2025, modest growth in the second half  **[MTB_3412699_4]**  (no prior guidance)  
- **Deposits**: $164 billion to $166 billion  **[MTB_3412699_4]**  (no prior guidance)  
- **Noninterest Income**: $2.5 billion to $2.6 billion  **[MTB_3412699_4]**  (no prior guidance)  
- **Noninterest Expense**: $5.4 billion to $5.5 billion  **[MTB_3412699_4]**  (no prior guidance)  
- **Net Charge-offs**: Near 40 basis points  **[MTB_3412699_4]**  (no prior guidance)  
- **Tax Rate**: Approximately 24.5%  **[MTB_3412699_4]**  (no prior guidance)  
- **Capital (CET1 ratio)**: Expected to reach 11% in 2025  **[MTB_3412699_4]**  (no prior guidance)  
- **Share Repurchases**: To increase compared to Q3 and Q4 2024  **[MTB_3412699_4]**  (no prior guidance)  

(No overlapping quarterly or annual guided periods exist between Q3 2024’s guidance and Q4 2024’s guidance, so no raise/lower/no-change comparisons can be made.)

441187a084428892c5837b2e95a713525e12fa0330d58d11f2e26679714930fb

| Name                          | Start Date | End Date | Reason for Change |
|-------------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP    | 1984  **[0000950170-24-017990_mtb-20231231.htm:168]**    | Present  | Current auditor   |

f31f53bc89383574d7a8ccefc5f8c618264f2060d046cede46343624d8d1d34a

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Net interest spread (Percent)

Contribution of net interest-free funds to net interest margin (Percent)

Net interest margin (Percent)

Number of full time equivalent employees (Count)

Allowance for credit losses as a percentage of loans and leases outstanding (Percent)

Reserves for loans secured by office properties (Percent)

Nonaccrual loans to total net loans and leases (Percent)

Nonperforming assets to total net loans and leases and real estate and other foreclosed assets (Percent)

Accruing loans past due 90 days or more to total net loans and leases (Percent)

Loans 30-89 days past due to total net loans and leases (Percent)

Ratio of the allowance for credit losses to total nonaccrual loans (Percent)

Criticized loans to total commercial and industrial and commercial real estate loans (Percent)

f374329beb3b742b78843304e680be8fcce1e2f663b99f60ae465329aacbe1d4

| Year       | Amount Due (Millions) | Debt Type              | Interest Rate (%)       | % of Total Debt                                                                 |
|------------|------------------------|------------------------|-------------------------|--------------------------------------------------------------------------------|
| 2025       | 2,000                 | FHLB Advances          | N/A                     | 14.1% = (2,000 / 14,188) * 100 **[0001628280-24-045198_mtb-20240930.htm:22]** **[0001628280-24-045198_mtb-20240930.htm:22]**                                 |
| ~2026      | 650                   | Asset-Backed Notes     | N/A                     | 4.6% = (650 / 14,188) * 100 **[0001628280-24-045198_mtb-20240930.htm:22]** **[0001628280-24-045198_mtb-20240930.htm:22]**                                   |
| ~2026      | 511                   | Asset-Backed Notes     | N/A                     | 3.6% = (511 / 14,188) * 100 **[0001628280-24-045198_mtb-20240930.htm:22]** **[0001628280-24-045198_mtb-20240930.htm:22]**                                   |
| 2032       | 850                   | Senior Notes           | 6.082 (fixed until 2031, then SOFR + 2.26) | 6.0% = (850 / 14,188) * 100 **[0001628280-24-045198_mtb-20240930.htm:22]** **[0001628280-24-045198_mtb-20240930.htm:22]** |

e99ea66afcf2201a6d3b520533de645cc2155663008d06ed5362cd3597320233

63f159d9e88a89a88bb34b7a86debb5f6504c3922537b265307fa1e93c87e1f2

- **M&T Bank's net charge-offs decreased to 29 basis points in the third quarter of 2023, below the long-term average of 33 basis points, indicating strong credit quality and effective risk management.** Management highlighted that they are "on top of the portfolios" and are proactively managing potential risks.  **[MTB_3337639_19]** **[MTB_3337639_6]**
- **The bank has a strong capital and liquidity position, with period-end cash balances rising to **$30 billion**, providing flexibility ("dry powder") to support customers and pursue growth opportunities.** Management stated that they are well-prepared to deploy capital in a shareholder-friendly manner when appropriate.  **[MTB_3337639_10]** **[MTB_3337639_11]** **[MTB_3337639_12]**
- **Opportunities for loan growth identified in areas like auto dealerships, large corporate banking, and fund banking, suggesting potential for revenue growth.** The bank is focusing on growing relationships and balances in loan categories without widening their credit criteria.  **[MTB_3337639_12]**

3f7b8e21014533314c5fa80f6bfb2c15428c01a089e844ce2b97280b20c5287e

1. **Capital Return Plans**  
   **Q:** Will you increase share repurchases in 2025, and what is your optimal CET1 ratio?  
   **A:** We have flexibility with a **CET1 ratio of 11.5%**.  **[MTB_3402957_5]**  As we enter 2025, we expect to return more capital to shareholders, potentially increasing share repurchases while targeting a CET1 ratio above **11%**.  **[MTB_3402957_5]**  This depends on economic conditions and loan growth, but we believe we're well-positioned to enhance shareholder returns.  **[MTB_3402957_5]** 

2. **Net Interest Income and Margin Outlook**  
   **Q:** Can NII and NIM continue to improve if rates decrease as projected?  
   **A:** We believe net interest income and margin will continue to improve into 2025, driven by positive repricing in our fixed asset portfolios and strong core deposits.  **[MTB_3402957_6]**  Even if rates remain flat or change, structural factors in our balance sheet support an upward trajectory in NII and NIM.  **[MTB_3402957_9]**  We have locked-in hedges that will enhance yields, and a positively sloping curve would further benefit us.  **[MTB_3402957_6]** 

3. **Criticized Loans and CRE Exposure**  
   **Q:** Are criticized loans expected to decline further, and do lower rates impact this?  
   **A:** Our criticized loans have declined for two consecutive quarters, and we expect a strong decrease in the fourth quarter.  **[MTB_3402957_5]**  Lower rates facilitate takeouts and paydowns, improving our criticized loan levels.  **[MTB_3402957_7]**  While we anticipate continued downward trajectory in 2025, we don't expect to eliminate criticized loans entirely, as supporting our clients is part of our long-term strategy.  **[MTB_3402957_15]** 

4. **Loan Growth Outlook**  
   **Q:** Will loan growth accelerate in 2025, particularly in CRE?  
   **A:** We see pipelines building in CRE, but it may take a couple of quarters before balances grow.  **[MTB_3402957_8]**  We expect to stop shrinking CRE and begin growing it in 2025, supporting revenue growth.  **[MTB_3402957_8]**  Overall loan growth may average around **1%** per quarter, but this depends on market conditions and prudent lending practices.  **[MTB_3402957_18]** 

5. **Deposit Beta Trends**  
   **Q:** How do you see deposit betas evolving with rate cuts?  
   **A:** Our deposit betas peaked at about **55%** on the way up; we expect them to end up around the same level on the way down.  **[MTB_3402957_10]**  We anticipate an initial **40% beta repricing down** in the fourth quarter  **[MTB_3402957_10]** , and planning and execution should allow us to continue this trend into 2025.  **[MTB_3402957_10]** 

6. **Funding and Deposit Growth**  
   **Q:** Can deposit growth fund loan growth, or will cash balances be utilized?  
   **A:** We aim to grow deposits faster than loans, maintaining an "always on" approach to deposit gathering.  **[MTB_3402957_11]**  We prefer to reduce noncore funding while focusing on customer deposits.  **[MTB_3402957_11]**  We may invest more in securities, with plans to add **$3 billion** in the fourth quarter  **[MTB_3402957_12]** , and manage cash at the Fed to maintain flexibility.  **[MTB_3402957_12]** 

7. **Expense Outlook and Operating Leverage**  
   **Q:** What operating leverage do you expect in 2025?  
   **A:** We anticipate positive operating leverage in 2025, potentially in the range of **150 to 200 basis points**.  **[MTB_3402957_20]**  While expenses may rise due to projects and incentive payouts, we believe 2025 will be a better year, supported by momentum in revenue growth and efficiency improvements.  **[MTB_3402957_20]** 

8. **Asset Mix and Charge-Off Expectations**  
   **Q:** How will changes in loan mix affect charge-offs and reserves?  
   **A:** As we grow our lending categories, particularly in consumer loans, we expect higher net charge-offs due to the mix change.  **[MTB_3402957_21]**  While our historical through-the-cycle charge-off rate is **34 basis points**  **[MTB_3402957_25]** , the shift towards consumer lending may lead to a slightly higher charge-off rate.  **[MTB_3402957_21]**  We're ensuring good returns on these assets and believe diversification benefits outweigh the impact.  **[MTB_3402957_21]** 

9. **Loan Repricing Benefits**  
   **Q:** What uplift are you seeing from loan repricing?  
   **A:** Fixed-rate loans rolling on and off are yielding a net benefit of about **150 basis points**.  **[MTB_3402957_19]**  Specifically, C&I fixed-rate loans are up **1%**, CRE up **1.3%**, mortgages over **2%**, and consumer loans up **1.4%**  **[MTB_3402957_19]** , positively impacting net interest income and margin.

10. **Noninterest-Bearing Deposits**  
    **Q:** What is the outlook for noninterest-bearing deposits?  
    **A:** We expect noninterest-bearing deposits to remain stable, averaging around **30%** excluding brokered deposits.  **[MTB_3402957_16]**  While there may be some volatility, particularly from our ICS business balances, we feel good about our position.  **[MTB_3402957_16]**  As rates come down, the value of these deposits decreases, so we must work harder to maintain spreads and margins.  **[MTB_3402957_16]** 

2e74dfdd9eb4c1a95989c3d182c818d4a6609acf212f73531da35e40e7dd450d

- **MTB reported broad-based growth in C&I loans** across multiple sectors, including dealer financial services, middle market, corporate and institutional, fund banking, equipment leasing, and mortgage warehouse. **Two-thirds of their 28 community bank regions are growing positively**, with highlights in Massachusetts, New Jersey, Philadelphia, and Western New York.  **[MTB_3379817_7]**
- MTB is making **tremendous progress in reducing Commercial Real Estate (CRE) exposure**, expecting to **lower CRE as a percent of capital reserves to mid- to low-160% by the end of the year**, down from 260% four years ago.  **[MTB_3379817_21]**
- Management is **confident in maintaining M&T's historical track record of outperforming peers in terms of credit losses**, despite an increase in criticized loans, emphasizing their long-term history of strong credit performance in both good and stress times.  **[MTB_3379817_24]**

21b8b777feb18a4edf6640a949d63c9c5bf36957da26d8e1703d66d3c704c3d5

1. **Net Interest Income Outlook**  
   **Q:** When will NII and margins stabilize?  
   **A:** Margins will stabilize when deposit disintermediation, especially in noninterest-bearing deposits, slows down. These deposits were down **$2.3 billion**, better than expected, and signs indicate slowing.  **[MTB_3337639_8]** **[MTB_3337639_10]**  Asset repricing is strong, with the consumer loan portfolio up **22 basis points**, auto loans up **300 basis points**, and RV loans up **250 basis points** on what's rolling off versus on.  **[MTB_3337639_8]**  While it's hard to predict, margins may stabilize in the next couple of quarters, but we need more data to confirm this trend.  **[MTB_3337639_10]** 

2. **CRE Exposure and Loan Loss Reserves**  
   **Q:** How is CRE, especially office and multifamily, affecting your reserves?  
   **A:** We're actively managing our CRE portfolio, particularly office loans, and added over **$50 million** to allowances this quarter, with about half allocated to CRE.  **[MTB_3337639_9]** **[MTB_3337639_12]** **[MTB_3337639_18]**  Valuations are challenging due to limited market activity, but we feel adequately reserved despite some softness in asset values.  **[MTB_3337639_9]** **[MTB_3337639_18]**  We're also monitoring multifamily closely but haven't seen significant issues yet.  **[MTB_3337639_9]** 

3. **Capital Return and Buybacks**  
   **Q:** When will you resume share buybacks?  
   **A:** Despite having excess capital, we're cautious due to economic unpredictability and higher rates potentially stressing clients in the coming quarters.  **[MTB_3337639_7]** **[MTB_3337639_15]**  We'll consider repurchases when the economy stabilizes; our capital distribution strategy remains, but we're focused on staying strong to support our customers now.  **[MTB_3337639_7]** **[MTB_3337639_15]** 

4. **Capital Position and Regulatory Impact**  
   **Q:** How are you managing your CET1 target amid new regulations?  
   **A:** With new rules, we'll initially maintain a higher capital buffer but will tighten it over time as we adjust.  **[MTB_3337639_14]**  We'll modify our investment portfolio to reduce volatility, possibly running shorter durations or hedging longer investments, due to AFS securities impacting regulatory capital ratios.  **[MTB_3337639_14]** 

5. **M&A Strategy**  
   **Q:** What's your view on M&A in the next 12-24 months?  
   **A:** M&A is still part of our strategy to build market density.  **[MTB_3337639_16]**  High rates make it more challenging due to capital impacts, but we're looking for opportunities that align with our focus on long-term customer relationships.  **[MTB_3337639_16]** 

6. **Credit Impact of Higher Rates**  
   **Q:** Are higher rates affecting your customers as swaps roll off?  
   **A:** Yes, as swaps mature, clients face higher interest payments, impacting sectors beyond CRE.  **[MTB_3337639_13]**  We're proactively monitoring portfolios to address potential issues and support our customers.  **[MTB_3337639_13]** 

7. **Loan Growth Opportunities**  
   **Q:** Which lending areas are you focusing on?  
   **A:** We're seeing growth in our dealer business, large corporate banking, and fund banking, particularly in the C&I space.  **[MTB_3337639_11]** **[MTB_3337639_14]**  While we're cautious, we're open to supporting customers without widening our credit criteria.  **[MTB_3337639_11]** **[MTB_3337639_14]** 

8. **Reserve Build Drivers**  
   **Q:** What drove additional reserve builds this quarter?  
   **A:** Softness in asset values within the CRE portfolio prompted us to add reserves, despite stable macroeconomic factors.  **[MTB_3337639_18]**  We're committed to maintaining robust allowances to meet borrower needs and regulatory requirements.  **[MTB_3337639_18]** 

9. **Charge-Off Guidance and 2024 Outlook**  
   **Q:** How might charge-offs trend into 2024?  
   **A:** Charge-offs may be higher in Q4 than the **29 basis points** in Q3, but it's uncertain.  **[MTB_3337639_19]**  While we're not providing 2024 guidance yet, we'll build allowances as economic conditions and customer behaviors dictate.  **[MTB_3337639_19]** 

42343edebd5c0193fe9ab1e265716ccbd42193a5594c4a0b015daf7d8c6f123f

- **Increase in consumer lending may lead to higher net charge-offs and higher allowance balances due to the higher risk associated with consumer loans**  **[MTB_3402957_21]** **[MTB_3402957_25]** . The shift in loan mix could impact future earnings as consumer loans typically have higher charge-off rates.
- **Uncertainty over future capital returns, such as share repurchases, due to potential economic slowdown**  **[MTB_3402957_5]** . MTB's plans to return more capital to shareholders in 2025 depend on economic conditions, and a slowdown could impact these plans.
- **High level of criticized loans with potential risk if interest rates do not decline further**  **[MTB_3402957_7]** . While criticized loans have decreased, 91% of them are still paying current, and further improvements may require interest rates to go lower.

aa6cb5784d0c3e7c1babcad0a80eb80553b9ff9bf9642183dce5fa5e0f148781

- **Strong Capital Position Enabling Increased Shareholder Returns**: M&T Bank's **CET1 ratio is a robust 11.5%**, providing significant flexibility to **increase share repurchases in 2025** and return more capital to shareholders.  **[MTB_3402957_5]**
- **Improving Asset Quality with Declining Criticized Loans**: The bank is experiencing significant improvements in asset quality, with **criticized loans decreasing by over $1 billion** and **91% of criticized loans paying current**, indicating strong credit performance and client commitment.  **[MTB_3402957_7]**
- **Diversified Growth in Loan Portfolio and Fee Businesses**: M&T Bank is **diversifying its loan portfolio**, expanding in consumer and C&I loans, and expects to **resume growth in CRE**, enhancing revenue prospects. The bank also has strong fee businesses like **wealth management and Institutional Client Services (ICS)**.  **[MTB_3402957_21]** **[MTB_3402957_8]**

6996ccedae815de6a7117b4baa086c22f390ecb4f8e2de105fcfe03e079ca8c1

- **Increasing credit risk in Commercial Real Estate (CRE), especially office properties, is evident with a mid- to high single-digit percentage increase in criticized loans, primarily in the Investor Real Estate (IRE) portfolio on the office side.**  **[MTB_3337639_6]**  The bank is also **increasing allowances for credit losses**, including a **$50 million increase** this quarter, with about half allocated to the CRE portfolio, indicating concerns about potential future losses in that sector.  **[MTB_3337639_12]**
- **Ongoing declines in non-interest-bearing deposits** are putting pressure on net interest margin (NIM), and there's uncertainty about when net interest income (NII) will stabilize. The bank experienced a **$2.3 billion decline in non-interest-bearing deposits**, which is a significant driver for NIM compression.  **[MTB_3337639_8]**  Management acknowledges that they need **a couple more quarters** before they can say that NIM will stabilize, indicating potential continued declines in NII.  **[MTB_3337639_10]**
- **Regulatory changes requiring higher capital buffers**, including the inclusion of Accumulated Other Comprehensive Income (AOCI) volatility in regulatory capital, may force the bank to maintain higher capital levels. Management anticipates starting with **a higher capital cushion** due to these new rules, which could potentially limit returns on equity and shareholder returns.  **[MTB_3337639_14]**  Additionally, the bank is currently **not repurchasing shares despite having excess capital**, due to a cautious stance on economic conditions, which may signal concerns about future profitability and growth.  **[MTB_3337639_15]**

1cb66112bcd336c5be4438be66e4a565b7389d34726660c4cbc31dcb14cdaea8

- **Significant increase in criticized loans**, particularly in the C&I (Commercial and Industrial) sector, with total criticized C&I loans increasing by **$641 million**  **[MTB_3379817_3]** , raising concerns about credit quality.
- **High exposure to Commercial Real Estate (CRE)**, with plans to reduce CRE as a percentage of capital to **160%** by year-end, indicating current elevated levels which could pose risks in a deteriorating CRE market.  **[MTB_3379817_21]**
- **S&P revised M&T Bank's outlook to negative** due to concerns over CRE concentration, suggesting potential future credit challenges or downgrades.  **[MTB_3379817_16]**

54c645f375551d9648e4656ededf0523490ffbb978882bbc2ee1905b710b30ca

- **Elevated levels of criticized loans**, particularly in the **Commercial Real Estate (CRE)** sector at **$12 billion**, pose a significant concern despite efforts to reduce these balances.  **[MTB_3393422_7]**
- The bank's **increasing loan modifications** for CRE borrowers may be **deferring problems**, leading to potential future pressures if economic conditions worsen.  **[MTB_3393422_7]**
- While the bank believes **loss content is lower** due to strong underwriting, there remains a **risk** of higher charge-offs if the economy doesn't perform as expected or if interest rates remain high.  **[MTB_3393422_7]**

c97b5a4c24b7991e507e8d1705dce86c33f9834d4c4359b58fe889fb8bd811ce

- **Significant progress in reducing CRE concentration**, bringing it closer to normal levels, enhancing the company's risk profile and capital efficiency.  **[MTB_3393422_7]**
- **Improving asset quality**, with declines in nonaccrual and criticized loans, and a focused effort by the credit team to continue this positive trend.  **[MTB_3393422_7]**
- **Commitment to returning capital to shareholders**, with plans to return excess capital conservatively, reinforcing shareholder value.  **[MTB_3393422_7]**

8666855d3d703413df1cb36a3f18e9f78f81a393f553d3caf6a46931af877983

1. **CRE Sensitivity**  
   **Q:** If rates stay high for 2 years, how sensitive is CRE portfolio?  
   **A:** We stress-tested the CRE portfolio with a **100 basis point** rate increase and found minimal impact. Since most CRE loans are fixed-rate or hedged, with only **29%** floating, a 100 bps rise might add approximately **$500 million** to criticized loans. Overall, we believe it's very manageable even if rates rise further.  **[MTB_3379817_10]** 

2. **NII Guidance**  
   **Q:** Is $6.8B NII achievable without rate cuts?  
   **A:** We're neutral to interest rates and feel comfortable with the **$6.8 billion** NII guidance even without rate cuts. Our margin has likely bottomed out and should be in the mid to high **350s** basis points for the rest of the year. Deposits are stable, and asset yields are improving, supporting our NII outlook.  **[MTB_3379817_5]** 

3. **Share Buybacks**  
   **Q:** Will CRE levels affect potential share buybacks?  
   **A:** We are considering five factors before resuming buybacks: macro environment, capital generation, stress test results, CRE levels, and overall asset quality. We'll evaluate at the end of Q2, aiming to be prudent stewards of capital. If we proceed, we'd start modestly, keeping a **CET1 ratio above 11%**.  **[MTB_3379817_11]** 

4. **Credit Quality**  
   **Q:** Why are your criticized loans higher than peers?  
   **A:** We intentionally maintain higher criticized loans to work closely with clients through stress times, fostering loyalty and better long-term outcomes. Our conservative approach in capital, liquidity, and credit management reflects how we operate the bank for shareholders' benefit.  **[MTB_3379817_9]** 

5. **Liquidity Levels**  
   **Q:** Why increase liquidity by 150 bps this quarter?  
   **A:** Due to industry stress, we acted conservatively to ensure strong capital and liquidity. We're comfortable letting excess liquidity reduce to around **$26–$27 billion** at the Fed over the year, absent further stresses.  **[MTB_3379817_6]** 

6. **Deposit Flows**  
   **Q:** How are deposit dynamics changing now?  
   **A:** We're focused on growing core deposits. Our trust business saw significant wins, adding deposits in late Q1 and early Q2. Both commercial and retail banks are concentrating on deposit growth. Our strength in securing operating accounts helps retain deposits.  **[MTB_3379817_12]** 

7. **NIM Outlook**  
   **Q:** Why isn't NII outlook more robust despite higher asset yields?  
   **A:** Deposit behavior, especially non-maturity deposits, drives interest rate sensitivity. While deposit costs are slowing, retail CDs are still growing due to rates over **3%**. Disintermediation is hard to model, so we prefer to underpromise and overdeliver on NII projections.  **[MTB_3379817_15]** 

8. **Loan Yields**  
   **Q:** What's the outlook for fixed-rate loan repricing?  
   **A:** We're seeing higher yields in auto and RV loans, with spreads up **24 bps** in auto and **63 bps** in RV. Incremental yields are **192 bps** higher in auto and **140 bps** higher in RV compared to loans rolling off. Other businesses also show improved yields.  **[MTB_3379817_13]** 

9. **CRE Maturities**  
   **Q:** How did Q1 CRE loan maturities play out?  
   **A:** Of the **$2.3 billion** maturing in Q1, **56%** were extended (with **9%** upgraded), about **23%** paid off. We're working through the remainder to extend or pay off. Very little moved into criticized loans.  **[MTB_3379817_14]** 

10. **C&I Loans Growth**  
    **Q:** Where do you see demand in C&I loans?  
    **A:** Growth was broad-based across sectors like auto floor planning, middle market, corporate and institutional, fund banking, equipment leasing, and mortgage warehouse. Regions like Massachusetts, New Jersey, Philadelphia, and Western New York drove growth.  **[MTB_3379817_7]** 

230f056a34a87155a5cc4ae341e33d6a0607c01d908b8587e631b95e5d0243a6

1. **Credit Losses in CRE**  
   **Q:** What's the expected loss content in CRE loans?  
   **A:** Management emphasized that despite higher levels of criticized and nonaccrual loans, they expect **lower loss content** due to strong underwriting with **loan-to-value ratios under 60%**, even in the office portfolio.  **[MTB_3393422_8]**  Half of the nonaccruals don't have a reserve because the **collateral value exceeds the loan value**.  **[MTB_3393422_8]**  They are actively working to reduce criticized loans and believe their underwriting strength will mitigate potential losses.  **[MTB_3393422_8]** 

2. **Capital Returns and CET1 Levels**  
   **Q:** How should shareholders view capital returns and CET1?  
   **A:** Management acknowledged that the current **CET1 ratio is higher** than long-term targets due to elevated criticized loan balances.  **[MTB_3393422_7]**  They are working to bring those balances down and affirmed that **excess capital will be returned to shareholders** in a **conservative manner**.  **[MTB_3393422_7]**  They promised not to waste capital and will return it when appropriate.  **[MTB_3393422_7]** 

3. **Deposit Costs and Brokered CD Runoff**  
   **Q:** Is the reduction in deposit costs sustainable without rate cuts?  
   **A:** Management expects brokered CDs to **run off by the end of the year**, contributing to lower deposit costs.  **[MTB_3393422_6]**  They see more **rational pricing** in the market and believe deposit costs will remain **flat or decline** as the year progresses and into next year.  **[MTB_3393422_6]**  There's still some migration from non-interest-bearing to interest-bearing deposits, but it's slowing down.  **[MTB_3393422_6]** 

4. **CRE Concentration Reduction**  
   **Q:** What's the outlook for reducing CRE concentration?  
   **A:** The bank has made **tremendous progress** in lowering its CRE concentration, now at **151% of risk-based capital**, and is nearing its target.  **[MTB_3393422_8]**  They expect to reach a more normal level **within a quarter or two**.  **[MTB_3393422_8]**  Management believes this level is appropriate for the company's size and client base.  **[MTB_3393422_8]** 

5. **Loan Modifications in CRE**  
   **Q:** Are loan mods just delaying future problems in CRE?  
   **A:** Management asserts that their **loan modifications enhance their position** by requiring borrowers to provide **more capital or recourse** in exchange for extended terms.  **[MTB_3393422_8]**  They are not simply delaying issues but improving their standing.  **[MTB_3393422_8]**  This approach reflects the bank's history of working with clients while protecting their interests.  **[MTB_3393422_8]** 

6. **Impact of Lower Rates on Criticized Loans**  
   **Q:** Could lower rates significantly reduce criticized loans?  
   **A:** Management noted that if rates decline, especially the **10-year yield**, it would enable them to refinance more loans and **lower criticized balances sooner and faster**.  **[MTB_3393422_8]**  A previous drop in rates led to a **huge volume** of loans being placed with agencies.  **[MTB_3393422_8]** 

7. **Securities Portfolio Yields**  
   **Q:** How will securities yields progress going forward?  
   **A:** The bank is **disciplined** in security purchases, keeping **duration around 3 years** and aiming for a **blended yield around 5%**.  **[MTB_3393422_9]**  With securities maturing at **about 2.5%**, reinvestment offers a potential **increase of 250 basis points** in yields.  **[MTB_3393422_9]**  They practice dollar-cost averaging to steadily improve yields.  **[MTB_3393422_9]** 

8. **Stress Capital Buffer Reduction**  
   **Q:** Can the SCB improve further next year?  
   **A:** Management was pleased with the **20 basis point reduction** in their stress capital buffer.  **[MTB_3393422_10]**  They are focused on reducing criticized loans to potentially achieve a **lower SCB** in future stress tests.  **[MTB_3393422_10]**  Share repurchases may also increase, aiding in this effort.  **[MTB_3393422_10]** 

9. **M&A Strategy and Focus Areas**  
   **Q:** What's the outlook on depository acquisitions?  
   **A:** While M&T has a history of successful acquisitions, they are currently not focused on M&A.  **[MTB_3393422_10]**  Instead, they are concentrating on **four priorities**: building out markets from the Peoples acquisition, enhancing risk areas, improving resiliency through transformations, and optimizing revenue and expenses.  **[MTB_3393422_10]**  Growth in treasury management revenues is a highlight.  **[MTB_3393422_10]** 

10. **Expense Management and Headcount**  
    **Q:** What is the plan for expenses and headcount?  
    **A:** Expenses are **on track** and might see slight shifts in the second half but will meet planned numbers.  **[MTB_3393422_10]**  The bank reduced headcount by **a couple of hundred FTEs** from the start of the year.  **[MTB_3393422_10]**  They maintain an **owner's mindset**, ensuring money is spent wisely and outcomes are delivered.  **[MTB_3393422_10]** 

389dc8311ddc401958f9a006eccff0edc809700f28761d57cb3b47e82c1b6e41

M&T Bank Corp (MTB)

Financials