Company: MTB-PJ
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0000036270-25-000011
Chunk: 238

Company: M&T BANK CORP
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 2
Chunk 238
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 months of 2025 and 2024, the net interest margin was 3.64% and 3.56%, respectively. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in changes to spreads, could impact the Company’s net interest income and net interest margin. Future changes in the levels of net interest-free funds and the interest rates used to value such funds could also impact the Company's net interest margin.

Management assesses the potential impact of future changes in interest rates and spreads by projecting net interest income under several interest rate scenarios. In managing interest rate risk, the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its earning assets and interest-bearing liabilities. Under the terms of those interest rate swap agreements, the Company generally received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Periodic settlement amounts arising from these agreements are reflected in either the yields on earning assets or the rates paid on interest-bearing liabilities. The Company enters into forward-starting interest rate swap agreements predominantly to hedge interest rate exposures expected in future periods. The following table summarizes information about interest rate swap agreements entered into for interest rate risk management purposes at June 30, 2025 and December 31, 2024.

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INTEREST RATE SWAP AGREEMENTS - DESIGNATED AS HEDGES

Notional AmountWeighted-AverageMaturity(In years)Weighted-Average Rate (Dollars in millions)Fixed Variable June 30, 2025Fair value hedges:Fixed rate long-term borrowings — active$3,350 4.7 3.33%4.57%Fixed rate long-term borrowings — forward-starting2,750 6.1 3.844.32Total fair value hedges6,100 5.3 Cash flow hedges:Variable rate commercial real estate and commercial and industrial loans:Active15,150 1.0 3.664.32Forward-starting11,500 2.5 3.514.32Total cash flow hedges26,650 1.6 Total$32,750 2.3 December 31, 2024Fair value hedges:Fixed rate long-term borrowings — active$2,000 5.4 3.11%5.07%Fixed rate long-term borrowings — forward-starting