Company: MTB-PJ
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006267
Chunk: 131

Company: M&T BANK CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 131
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 value hedges3,000 5.8 Cash flow hedges:Variable rate commercial real estate loans:Active14,977 1.23.31 5.35 Forward-starting9,000 2.53.67 5.37 Total cash flow hedges23,977 1.7 Total$26,977 2.2 

Information regarding the fair value of interest rate swap agreements designated as fair value hedges and cash flow hedges is presented in note 17 of Notes to Financial Statements. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes (excluding forward-starting interest rate swap agreements not in effect during the year), the related effect on net interest income and margin, and the weighted-average interest rates paid or received on those swap agreements are presented in Table 16.

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Table 16

INTEREST RATE SWAP AGREEMENTS - EFFECT ON NET INTEREST INCOME 

Year Ended December 31,.202420232022(Dollars in millions)Amount Rate (a)Amount Rate (a)Amount Rate (a)Increase (decrease) in:Interest income $(364)-.19 %$(250)-.13 %$(36)-.02 %Interest expense 50 .04 52 .04 (10)-.01 Net interest income/margin$(414)-.22 %$(302)-.16 %$(26)-.02 %Average notional amount (b)$21,003 $14,027 $15,487 Rate received (c)3.29 %3.12 %1.73 %Rate paid (c)5.26 5.24 1.90 

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(a)Computed as a percentage of average earning assets or interest-bearing liabilities.

(b)Excludes forward-starting interest rate swap agreements not in effect during the year.

(c)Weighted-average rate paid or received on interest rate swap agreements in effect during the year.

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Provision for Credit Losses

A provision for credit losses is recorded to adjust the level of the allowance to reflect expected credit losses that are based on economic forecasts as of each reporting date. A provision for credit losses of $610 million and $645 million was recorded in 2024 and 2023, respectively. The lower provision for credit losses in 2024 as compared with 2023 reflects improved performance of loans to commercial real estate borrowers