Company: MTB-PJ
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001628280-25-022036
Chunk: 42

Company: M&T BANK CORP
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 31,2025December 31, 2024March 31,2025December 31, 2024Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges Long-term borrowings$5,277 $5,184 $(63)$(155)Investment securities available for sale 381 — 

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10. Derivative financial instruments, continued

The net effect of interest rate swap agreements was to decrease net interest income by $62 million and $100 million during the three-month periods ended March 31, 2025 and 2024, respectively. The amount of interest income recognized in the Consolidated Statement of Income associated with derivatives designated as cash flow hedges was a decrease of $53 million and $87 million for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, the unrealized gain recognized in other comprehensive income related to cash flow hedges was $9 million, of which losses of $15 million and $12 million, gains of $39 million, and losses of $3 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 a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions.The Company primarily clears non-customer derivative transactions through a clearinghouse, rather than directly with counterparties. The transactions cleared through a clearinghouse require initial margin collateral and variation margin payments depending on the contracts being in a net asset or liability position. The amount of initial margin collateral posted by the Company was $240 million and $257 million at March 31, 2025 and December 31, 2024, respectively. The fair value asset and liability amounts of derivative contracts have been reduced by variation margin payments treated as settlements as described herein. Variation margin on derivative contracts not treated as settlements continues to represent collateral posted or received by the Company.The aggregate fair value of derivative financial instruments in a liability position, which are subject to enforceable master netting arrangements, and the related collateral posted, was not material at each of March 31,