Company: MTB-PJ
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001628280-25-022036
Chunk: 159

Company: M&T BANK CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of certain strata exceed their estimated fair value. To estimate the fair value of servicing rights, the Company considers market prices for similar assets, if available, and the present value of expected future cash flows associated with the servicing rights calculated using assumptions that market participants would use in estimating future servicing income and expense. Such assumptions include estimates of the cost of servicing loans, loan default rates, an appropriate discount rate and prepayment speeds. For purposes of evaluating and measuring impairment of capitalized servicing rights, the Company stratifies such assets based on the predominant risk characteristics of the underlying financial instruments that are expected to have the most impact on projected prepayments, cost of servicing and other factors affecting future cash flows associated with the servicing rights. Such factors may include financial asset or loan type, note rate and term. The amount of impairment recognized is the amount by which the carrying value of the capitalized servicing rights for a stratum exceed estimated fair value. Impairment is recognized through a valuation allowance. The determination of fair value of capitalized servicing rights is considered a Level 3 valuation. Capitalized servicing rights related to mortgage loans required no valuation allowance at each of March 31, 2025, December 31, 2024 and March 31, 2024.Disclosures of fair value of financial instrumentsThe carrying amounts and estimated fair value for certain financial instruments that are not recorded at fair value in the Consolidated Balance Sheet are presented in the following table:(Dollars in millions)CarryingAmount EstimatedFair Value Level 1Level 2 Level 3 March 31, 2025Financial assets:Cash and cash equivalents$2,109 $2,109 $1,980 $129 $— Interest-bearing deposits at banks20,656 20,656 — 20,656 — Investment securities held to maturity13,352 12,308 — 12,264 44 Loans and leases, net132,374 131,995 — 6,653 125,342 Financial liabilities:Time deposits13,979 13,948 — 13,948 — Short-term borrowings1,573 1,573 — 1,573 — Long-term borrowings10,496 10,605 — 10,605 — December 31, 2024Financial assets:Cash and cash equivalents