M&T BANK CORP

The components of other expense are presented in the accompanying table.

OTHER EXPENSE

Salaries and employee benefits

The number of full-time equivalent employees was 22,291 at March 31, 2025, compared with 22,101 at December 31, 2024 and 21,927 at March 31, 2024, whereas the average number of full-time equivalent employees was 22,235 in the recent quarter, compared with 22,067 in the fourth quarter of 2024 and 22,016 in the first quarter of 2024. Included in the first quarters of 2025 and 2024 was $110 million and $99 million, respectively, of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense.

Salaries and employee benefits expense increased $97 million in the recent quarter as compared with the fourth quarter of 2024 reflecting the aforementioned seasonal costs, the impact of annual merit increases and higher average staffing levels, partially offset by two less working days in the recent quarter.

Salaries and employee benefits expense increased $54 million in the three months ended March 31, 2025 as compared with the year-earlier period 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.

Nonpersonnel expenses

Nonpersonnel expenses aggregated $528 million in the recent quarter, down from $573 million in the fourth quarter of 2024. That decrease reflects lower other costs of operations resulting from vacated facility write-downs of $27 million and losses on the redemption of certain issuances of M&T's Junior Subordinated Debentures of $20 million 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 benefit associated with the solicited election of certain participants in M&T's defined benefit pension plan to accept a lump-sum distribution in lieu of future retirement benefit payments in the fourth quarter of 2024 and higher outside data processing and software costs of $11 million in the recent quarter, reflecting a rise in software licensing fees and maintenance costs.

Nonpersonnel expenses decreased $35 million to $528 million in the recent quarter as compared with $563 million in the year-earlier period reflecting a $29 million FDIC special assessment expense recognized in the first quarter of 2024, lower costs associated with the Company's supplemental executive retirement savings plan in the recent quarter due to market performance and losses on lease terminations related to certain vacated properties in the first quarter of 2024. Partially offsetting those favorable factors was an increase in outside data processing and software costs of $16 million reflecting higher software licensing fees and software maintenance expenses.

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