M&T BANK CORP
For the period ended Mar 31, 2026. Filed May 5, 2026.
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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.
Mar 31, 2026 · Filed May 5, 2026
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Other Income
The components of other income are presented in the accompanying table.
OTHER INCOME
| Three Months Ended · Change · Three Months Ended · Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | March 31,2026 | December 31,2025 | Amount | % | March 31,2026 | March 31,2025 | Amount | % |
| Mortgage banking revenues | $127 | $155 | $(28) | -18% | $127 | $118 | $9 | 8% |
| Service charges on deposit accounts | 139 | 140 | (1) | -1 | 139 | 133 | 6 | 5 |
| Trust income | 183 | 184 | (1) | -1 | 183 | 177 | 6 | 3 |
| Brokerage services income | 35 | 34 | 1 | 3 | 35 | 32 | 3 | 9 |
| Trading account and other non-hedging derivative gains | 14 | 19 | (5) | -26 | 14 | 9 | 5 | 43 |
| Gain (loss) on bank investment securities | 4 | 1 | 3 | 238 | 4 | — | 4 | — |
| Other revenues from operations | 187 | 163 | 24 | 14 | 187 | 142 | 45 | 31 |
| Total other income | $689 | $696 | $(7) | -1% | $689 | $611 | $78 | 13% |
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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 · Three Months Ended · Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | March 31,2026 | December 31,2025 | Amount | % | March 31,2026 | March 31,2025 | Amount | % |
| Residential mortgage banking revenues | ||||||||
| Gains on loans originated for sale | $8 | $7 | $1 | 15% | $8 | $6 | $2 | 31% |
| Loan servicing: | ||||||||
| Loan servicing fees | 32 | 33 | (1) | -2 | 32 | 36 | (4) | -10 |
| Changes in fair value of mortgage loan servicing right assets, net of hedging activities | (13) | — | (13) | — | (13) | — | (13) | — |
| Loan sub-servicing and other fees | 62 | 65 | (3) | -5 | 62 | 40 | 22 | 53 |
| Total loan servicing | 81 | 98 | (17) | -18 | 81 | 76 | 5 | 6 |
| Total residential mortgage banking revenues | $89 | $105 | $(16) | -16% | $89 | $82 | $7 | 8% |
| New commitments to originate loans for sale | $400 | $392 | $8 | 2% | $400 | $290 | $110 | 38% |
| (Dollars in millions) | March 31,2026 | December 31,2025 | March 31,2025 |
|---|---|---|---|
| Balances at period end | |||
| Loans held for sale | $327 | $441 | $179 |
| Commitments to originate loans for sale | 222 | 224 | 224 |
| Commitments to sell loans | 544 | 645 | 339 |
| Capitalized mortgage loan servicing assets | 542 | 287 | 347 |
| Loans serviced for others | 35,586 | 35,873 | 37,572 |
| Loans sub-serviced for others (a) | 123,968 | 156,938 | 160,966 |
| Total loans serviced for others | $159,554 | $192,811 | $198,538 |
(a)The contractual servicing rights associated with residential mortgage loans sub-serviced by the Company were primarily held by affiliates of BLG. Information about the Company’s relationship with BLG and its affiliates is included in note 15 of Notes to Financial Statements.
Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value with changes in fair value reflected in mortgage banking revenues. As a result, fair value changes in the mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in mortgage banking revenues. On December 31, 2025, the Company began economically hedging the risk of fair value changes in these assets through the use of various interest rate derivative contracts, for which changes in fair value are also reflected in mortgage banking revenues.
The lower residential mortgage banking revenues for the first quarter of 2026 as compared with the fourth quarter of 2025 predominantly reflect the impact of the Company's accounting election described herein. The decline in the balance of loans sub-serviced for others reflects the return of servicing functions for $30.1 billion of residential mortgage loan balances back to Bayview Financial as the contractual holder of those servicing rights in March 2026.
The increase in residential mortgage banking revenues in the first three months of 2026 as compared with the corresponding 2025 period reflects higher sub-servicing revenues due to 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, partially offset by the Company's accounting election described herein.
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COMMERCIAL MORTGAGE BANKING ACTIVITIES
| Three Months Ended · Change · Three Months Ended · Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | March 31,2026 | December 31,2025 | Amount | % | March 31,2026 | March 31,2025 | Amount | % |
| Commercial mortgage banking revenues | ||||||||
| Gains on loans originated for sale | $18 | $30 | $(12) | -41% | $18 | $16 | $2 | 16% |
| Loan servicing fees and other | 20 | 20 | — | 5 | 20 | 20 | — | 2 |
| Total commercial mortgage banking revenues | $38 | $50 | $(12) | -23% | $38 | $36 | $2 | 8% |
| Loans originated for sale to other investors | $1,135 | $2,168 | $(1,033) | -48% | $1,135 | $719 | $416 | 58% |
| (Dollars in millions) | March 31,2026 | December 31,2025 | March 31,2025 |
|---|---|---|---|
| Balances at period end | |||
| Loans held for sale | $359 | $484 | $192 |
| Commitments to originate loans for sale | 529 | 773 | 784 |
| Commitments to sell loans | 903 | 1,253 | 974 |
| Capitalized mortgage loan servicing assets | 138 | 132 | 125 |
| Loans serviced for others (a) | 30,934 | 30,309 | 27,963 |
| Loans sub-serviced for others | 4,194 | 4,231 | 4,205 |
| Total loans serviced for others | $35,128 | $34,540 | $32,168 |
(a)Includes $4.7 billion, $4.6 billion and $4.3 billion of loan balances at March 31, 2026, December 31, 2025 and March 31, 2025, respectively, for which investors had recourse to the Company if such balances are ultimately uncollectable.
The lower gains on commercial mortgage loans originated for sale in the recent quarter as compared with the fourth quarter of 2025 reflect decreased volume on new commitments to originate commercial real estate loans for sale.
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.
TRUST INCOME AND ASSETS UNDER MANAGEMENT
| Three Months Ended · Change · Three Months Ended · Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | March 31,2026 | December 31,2025 | Amount | % | March 31,2026 | March 31,2025 | Amount | % |
| Trust income | ||||||||
| Institutional Services | $96 | $97 | $(1) | -1% | $96 | $94 | $2 | 2% |
| Wealth Management | 86 | 86 | — | — | 86 | 82 | 4 | 4 |
| Commercial | 1 | 1 | — | -16 | 1 | 1 | — | 19 |
| Total trust income | $183 | $184 | $(1) | -1% | $183 | $177 | $6 | 3% |
| (Dollars in millions) | March 31,2026 | December 31,2025 | March 31,2025 |
|---|---|---|---|
| Assets under management at period end | |||
| Trust assets under management (excluding proprietary funds) | $68,298 | $68,104 | $64,554 |
| Proprietary mutual funds | 16,169 | 16,075 | 15,938 |
| Total assets under management | $84,467 | $84,179 | $80,492 |
The increase in Wealth Management trust income in the first three months of 2026 as compared with the first quarter of 2025 reflects higher assets under management in the recent quarter.
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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 · Three Months Ended · Change | ||||||||
|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) | March 31,2026 | December 31,2025 | Amount | % | March 31,2026 | March 31,2025 | Amount | % |
| Letter of credit and other credit-related fees | $54 | $57 | $(3) | -4% | $54 | $49 | $5 | 12% |
| Merchant discount and credit card fees | 41 | 46 | (5) | -13 | 41 | 39 | 2 | 3 |
| Bank owned life insurance revenue | 18 | 19 | (1) | -8 | 18 | 18 | — | 2 |
| Equipment operating lease income | 11 | 11 | — | -5 | 11 | 11 | — | 1 |
| BLG income (a) | 33 | — | 33 | — | 33 | — | 33 | — |
| Other | 30 | 30 | — | 4 | 30 | 25 | 5 | 18 |
| Total other revenues from operations | $187 | $163 | $24 | 14% | $187 | $142 | $45 | 31% |
(a)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 from BLG each year that resulted 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 15 of Notes to Financial Statements.
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