Company: MTB-PJ
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000036270-25-000011
Chunk: 166

Company: M&T BANK CORP
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 8
Chunk 166
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)$78 Derivatives not designated as hedging instrumentsInterest rate contracts (b)$12 $6 Foreign exchange and other option and futures contracts (b)6 8 Total$18 $14 __________________________________________________________________________________(a)Reported as an adjustment to Interest expense in the Company's Consolidated Statement of Income.(b)Included in Trading account and other non-hedging derivative gains in the Company's Consolidated Statement of Income.

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11. Derivative financial instruments, continued

Carrying Amount of the Hedged ItemCumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the CarryingAmount of the Hedged Item (Dollars in millions)June 30,2025December 31, 2024June 30,2025December 31, 2024Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges Long-term borrowings$6,079 $5,184 $(8)$(155)Investment securities available for sale 381 — The net effect of interest rate swap agreements was to decrease net interest income by $44 million and $106 million during the three-month and six-month periods ended June 30, 2025, respectively, and to decrease net interest income by $113 million and $213 million during the three-month and six-month periods ended June 30, 2024, respectively. The amount of interest income recognized in the Company's Consolidated Statement of Income associated with derivatives designated as cash flow hedges was a decrease of $33 million and $99 million for the three months ended June 30, 2025 and 2024, respectively, and a decrease of $86 million and $186 million for the six-month periods ended June 30, 2025 and 2024, respectively. As of June 30, 2025, the unrealized gain recognized in other comprehensive income related to cash flow hedges was $85 million, of which losses of $1 million and $5 million and gains of $60 million and $31 million relate to interest rate swap agreements maturing in 2025, 2026, 2027 and 2028, respectively.The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting or settlement requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include