M&T BANK CORP
For the period ended Sep 30, 2025. Filed Oct 27, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 27, 2025
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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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