M&T BANK CORP

Reportable segments have been determined based upon the Company’s organizational structure which is primarily arranged around the delivery of products and services to similar customer types. The reportable segments are Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. All other business activities that are not included in the three reportable segment results have been included in the "All Other" category.

A description of the business activities conducted by each of the Company's segments and the accounting policies utilized in compiling financial information of such segments is provided in note 21 of Notes to Financial Statements. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

Table 43

NET INCOME (LOSS) BY SEGMENT

Commercial Bank

Table 44

COMMERCIAL BANK SEGMENT FINANCIAL SUMMARY

Net income for the Commercial Bank segment was $871 million in 2024, compared with $1.04 billion in 2023.

•Net interest income declined $197 million reflecting a narrowing of the net interest margin on average deposits and loans of 33 basis points and 14 basis points, respectively, partially offset by a rise in average outstanding deposit balances of $1.9 billion.

•The provision for credit losses decreased $31 million reflecting a change in mix in portfolio composition of commercial real estate loans and commercial and industrial loans.

•Noninterest income increased $14 million reflecting higher service charges on deposit accounts and higher credit-related fees, partially offset by lower gains on sales of leased equipment.

•Noninterest expense increased $78 million reflecting a rise in centrally-allocated costs associated with data processing, risk management and other support services provided to the Commercial Bank segment of $35 million and an increase in personnel-related costs of $33 million.

•The increase in average loans in 2024 as compared with 2023 reflects higher average balances of commercial and industrial loans including growth that spanned most industry types, partially offset by a reduction in average commercial real estate loans, including average construction loans.

•Average deposits grew $1.9 billion in 2024 as compared with 2023 reflecting a shift in customer funds from noninterest-bearing accounts to interest-bearing products amidst an elevated interest rate environment.

Retail Bank

Table 45

RETAIL BANK SEGMENT FINANCIAL SUMMARY

Net income for the Retail Bank segment was $1.72 billion in 2024, a decrease of $122 million as compared with 2023.

•Net interest income decreased $64 million, reflecting a narrowing of the net interest margin on deposits of 6 basis points, partially offset by higher average loan balances of $1.3 billion.

•The provision for credit losses increased $115 million reflecting higher net charge-offs of consumer and business banking loans and loan growth, including higher average balances of recreational vehicle and automobile loans.

•Noninterest income increased $48 million including higher residential mortgage loan servicing fees, reflecting the bulk purchase of residential mortgage loan servicing rights at the end of the first quarter of 2023, and a rise in service charges on deposit accounts.

•Noninterest expense rose $42 million predominantly due to higher centrally-allocated costs associated with data processing, risk management, and other support services provided to the Retail Bank segment of $84 million, partially offset by lower other costs of operations of $31 million, reflecting lower losses on certain retail banking activities, and a decline in equipment and net occupancy costs.

•The increase in average loans in 2024 as compared with 2023 reflects an increase in average balances of recreational finance and automobile loans, partially offset by lower average balances of residential mortgage loans.

•Average deposits in 2024 as compared with 2023 reflect a shift from noninterest-bearing accounts to interest-bearing products, including time deposits, amidst an elevated interest rate environment.

Institutional Services and Wealth Management

Table 46

INSTITUTIONAL SERVICES AND WEALTH MANAGEMENT SEGMENT FINANCIAL SUMMARY

Net income for the Institutional Services and Wealth Management segment was $535 million in 2024, a decrease of $85 million from 2023.

•Net interest income increased $48 million reflecting a widening of the net interest margin on deposits of 3 basis points and an increase in average outstanding deposit balances of $920 million.

•Noninterest income decreased $196 million predominantly due to the $225 million gain on sale of the CIT business in the second quarter of 2023 and a decline in trust income of $6 million. The lower trust income reflects lower revenues associated with the CIT business of $60 million following its sale, partially offset by higher non-CIT related revenues of $54 million reflecting improved sales in the segment's global capital markets business and a rise in fee income from the wealth management business reflecting higher assets under management and favorable market performance. Those unfavorable factors were partially offset by higher brokerage services income of $19 million, reflecting increased annuities sales.

•Noninterest expense decreased $36 million reflecting a $57 million decline in professional and other services expense due, in part, to lower sub-advisory fees as a result of the sale of the CIT business, partially offset by an increase of $9 million in centrally-allocated costs associated with data processing, risk management, and other support services provided to the Institutional Services and Wealth Management segment and $8 million in personnel-related costs.

All Other

Table 47

ALL OTHER CATEGORY FINANCIAL SUMMARY

The "All Other" category recorded a net loss of $534 million in 2024, compared with a net loss of $756 million in 2023.

•Net interest expense increased $50 million reflecting the unfavorable impact of interest rate swap agreements entered into for interest rate risk management purposes, partially offset by the favorable impact from the Company’s allocation methodologies for internal transfers related to funding charges and credits associated with earning assets and interest-bearing liabilities of the Company’s reportable segments.

•Provision for credit losses decreased $125 million reflecting the net impact of the allocation of the provision for credit losses to reportable segments.

•Noninterest income increased $33 million reflecting an increase in distributions from M&T's investment in BLG of $28 million and higher net gains on bank investment securities, including realized net gains in 2024 from the divestment of certain debt and equity investment securities that were not considered relevant to the Company's current balance sheet management strategies.

•Noninterest expense decreased $104 million reflecting lower FDIC special assessments, partially offset by higher personnel-related costs.