# EDGAR Filing Document

**Accession Number:** 0000036270
**File Stem:** 0001193125-23-062136
**Filing Date:** 2023-3
**Character Count:** 331338
**Document Hash:** 6948987500c7ef761654cf8336425385
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-062136.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001193125-23-062136

**CONFORMED SUBMISSION TYPE**: ARS

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**EFFECTIVENESS DATE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** M&T BANK CORP
- **CENTRAL INDEX KEY:** 0000036270
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 160968385
- **STATE OF INCORPORATION:** NY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** ARS
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-09861
- **FILM NUMBER:** 23711067

**BUSINESS ADDRESS:**
- **STREET 1:** C/O CORPORATE REPORTING
- **STREET 2:** ONE M&T PLAZA 5TH FLOOR
- **CITY:** BUFFALO
- **STATE:** NY
- **ZIP:** 14203
- **BUSINESS PHONE:** 7168425390

**MAIL ADDRESS:**
- **STREET 1:** C/O CORPORATE REPORTING
- **STREET 2:** ONE M&T PLAZA 5TH FLR
- **CITY:** BUFFALO
- **STATE:** NY
- **ZIP:** 14203

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FIRST EMPIRE STATE CORP
- **DATE OF NAME CHANGE:** 19920703

### Attached PDF Documents

**Attachment 1:** `d465982dars.pdf`

![img-0.jpeg](img-0.jpeg)

**M&T BANK CORPORATION** 2022 MESSAGE TO SHAREHOLDERS

![img-1.jpeg](img-1.jpeg)

![img-2.jpeg](img-2.jpeg)

![img-3.jpeg](img-3.jpeg)

# There's nothing together can't do.

Togetherness as a way of thinking and acting carries so much power. Mutual support and collaboration toward a common goal makes nothing unattainable. And as M&T Bank continues to move into new communities and regions, never losing sight of this important value - and never losing our focus on what it really means when we all come together, work together, and celebrate together - is critical to our success. And, more importantly, the success of our customers and shareholders.

This idea has been brought to life on the cover of this year's message to shareholders by Alder Crocker, who became an artist only after

![img-4.jpeg](img-4.jpeg)

an accident in 2018 left him 85% paralyzed. Art therapy uncovered his latent artistic ability. In this work, Crocker represents unity through several interlocking circles and multiple interacting colors. There are also ampersands scattered throughout. And the entire piece represents a unique spin on togetherness.

*This message to shareholders continues the tradition of featuring works of artists with strong connections to the communities served by M&T Bank.*

# Table of Contents

![img-5.jpeg](img-5.jpeg)

M&T BANK CORPORATION

CONTENTS Financial Highlights ... ii
The Letter ... v
Officers and Directors ... xxvii

ANNUAL MEETING The annual meeting of shareholders will take place at 11:00 a.m. Eastern Time on April 18, 2023. The meeting will be a virtual annual meeting conducted via live webcast.

PROFILE M&T Bank Corporation is a bank holding company headquartered in Buffalo, New York, which had assets of $200.7 billion at December 31, 2022. M&T Bank Corporation's subsidiaries include:
- M&T Bank
- Wilmington Trust, National Association
- M&T Securities, Inc.

M&T Bank has banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Massachusetts, Maine, Vermont, New Hampshire, Virginia, West Virginia and the District of Columbia. M&T Bank's subsidiaries include:
- M&T Realty Capital Corporation
- Wilmington Trust Company
- Wilmington Trust Investment Advisors, Inc.

# M&T BANK CORPORATION AND SUBSIDIARIES

# Financial Highlights

|  |  | 2022 | 2021 | Change |
| --- | --- | --- | --- | --- |
| For the year |  |  |  |  |
| Performance | Net income (thousands)... | $1,991,663 | $1,858,746 | + 7% |
|  | Net income available to common shareholders-diluted (thousands)... | 1,891,480 | 1,776,987 | + 6% |
|  | Return on |  |  |  |
|  | Average assets... | 1.05% | 1.22% |  |
|  | Average common equity... | 8.67% | 11.54% |  |
|  | Net interest margin... | 3.39% | 2.76% |  |
|  | Net charge-offs/average loans... | .13% | .20% |  |
| Per common share data | Basic earnings... | $11.59 | $13.81 | - 16% |
|  | Diluted earnings... | 11.53 | 13.80 | - 16% |
|  | Cash dividends... | 4.80 | 4.50 | + 7% |
| Net operating (tangible) results (a) | Net operating income (thousands)... | $2,466,010 | $1,899,838 | + 30% |
|  | Diluted net operating earnings per common share... | 14.42 | 14.11 | + 2% |
|  | Net operating return on |  |  |  |
|  | Average tangible assets... | 1.35% | 1.28% |  |
|  | Average tangible common equity... | 16.70% | 16.80% |  |
|  | Efficiency ratio (b) ... | 56.6% | 59.0% |  |
| At December 31 |  |  |  |  |
| Balance sheet data (millions) | Loans and leases, net of unearned discount... | $131,564 | $92,912 | + 42% |
|  | Total assets... | 200,730 | 155,107 | + 29% |
|  | Deposits... | 163,515 | 131,543 | + 24% |
|  | Total shareholders' equity... | 25,318 | 17,903 | + 41% |
|  | Common shareholders' equity... | 23,307 | 16,153 | + 44% |
| Loan quality | Allowance for credit losses to total loans... | 1.46% | 1.58% |  |
|  | Nonaccrual loans ratio... | 1.85% | 2.22% |  |
| Capital | Common equity Tier 1 ratio... | 10.44% | 11.42% |  |
|  | Tier 1 risk-based capital ratio... | 11.79% | 13.11% |  |
|  | Total risk-based capital ratio... | 13.60% | 15.33% |  |
|  | Leverage ratio... | 9.23% | 8.87% |  |
|  | Total equity/total assets... | 12.61% | 11.54% |  |
|  | Common equity (book value) per share... | $137.68 | $125.51 | + 10% |
|  | Tangible common equity per share... | 86.59 | 89.80 | - 4% |
|  | Market price per share |  |  |  |
|  | Closing... | 145.06 | 153.58 | - 6% |
|  | High... | 193.42 | 168.27 |  |
|  | Low... | 138.43 | 125.45 |  |

$^{(a)}$Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in Item 7, Table 2 in Form 10-K.

$^{(b)}$Excludes impact of merger-related expenses and net securities gains or losses.

ii

# DILUTED EARNINGS
PER COMMON SHARE

![img-6.jpeg](img-6.jpeg)

# SHAREHOLDERS' EQUITY
PER COMMON SHARE AT YEAR-END

![img-7.jpeg](img-7.jpeg)

# NET INCOME
In millions

![img-8.jpeg](img-8.jpeg)

# RETURN ON AVERAGE COMMON
SHAREHOLDERS' EQUITY

![img-9.jpeg](img-9.jpeg)

(a) Excludes merger-related gains and expenses and amortization of intangible assets, net of applicable income tax effects. A reconciliation of net operating (tangible) results with net income is included in Item 7, Table 2 in Form 10-K.

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# The Letter

![img-10.jpeg](img-10.jpeg)

It is far from hyperbole to describe the year past as an extraordinary one for M&T. Our hometown of Buffalo was hit by tragedy: the racist-inspired murders of innocent shoppers at a supermarket; a once-in-a-century blizzard that overwhelmed even a city long-accustomed to such winter weather; the Buffalo Bills’ Damar Hamlin collapsing in cardiac arrest on the field drew the city-and fans across the country-together. Even the local football team could not offer escape, its successes notwithstanding. Suddenly, Buffalo seemed to be constantly in the national spotlight, in ways far from welcome.

Events like these called on the inner resources of our employees to guide our operations through tragedy and turmoil. To add to those challenges, the larger economic environment itself was far from typical or stable. As we began the year, massive stimulus payments sat in customer accounts boosting our interest-bearing cash balances to almost six times prepandemic levels. The unemployment rate dropped to 3.5 percent in 2022, matching the lowest level on record over the past 53 years. Inflation, as measured by the Consumer Price Index, rose to 9.1 percent-the highest levels seen in over 40 years. The Federal Reserve raised its benchmark interest rate, federal funds, from near zero to 4.5 percent, a pace not seen since the early 1980s. Such economic conditions have only been experienced by the most tenured bankers and investors.

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It was on these shifting economic seas that we completed the acquisition of People’s United Financial (People’s United)-the largest in our history, increasing the size of the bank by some 40 percent. It’s safe to say 2022 was a busy and eventful year. Let’s take a look.

## FINANCIAL RESULTS

By most measures, 2022 could be considered a strong year for our financial performance. Net operating income grew to $2.47 billion, an increase of 30 percent. Net operating income per diluted common share increased 2 percent to $14.42-highest when compared to our 11 large regional peer banks, which saw a median decline of 13 percent. For M&T, but to a greater extent for our peers, the benefits to net income from recouping money set aside for losses witnessed in 2021 did not repeat in 2022. These results produced net operating return on average tangible assets of 1.35 percent, and net operating return on average tangible common equity of 16.70 percent, both essentially unchanged from the prior year.

These “net operating” and “tangible” return measures exclude intangible assets from total assets and common shareholders’ equity and the expense from the non-cash amortization of intangibles, as well as any merger-related gains or expenses from the income in years when they are realized or incurred. M&T has disclosed the “net operating” and “tangible” results routinely and without change since 1998, in order to help investors better understand the impact of mergers and acquisitions on M&T’s financial results.

vi

Net operating results in 2022 exclude $432 million in merger expenses, after tax effect or $2.63 per share, related to the People’s United combination. Such expenses were $34 million, after tax effect or $.25 per share in 2021. A reconciliation of Generally Accepted Accounting Principles (GAAP) and non-GAAP results can be found in the Form 10-K.

Net interest income, that is interest collected on loans and investments less interest paid on deposits and borrowings expressed on a taxable equivalent basis, continues to be the largest source of M&T’s earnings, amounting to 71.3 percent of revenues in 2022. Net interest income increased 53 percent year over year to $5.8 billion. Growth or decline in net interest income is typically driven by changes in earning assets, such as loans and investment securities, and changes in the net interest margin. Average earning assets increased by $34 billion or 24 percent to $172.8 billion, due in large part to the $57 billion in earning assets acquired with the People’s United merger on April 1, 2022. The net interest margin, which is net interest income expressed as a percentage of average interest-earning assets, was 3.39 percent for the past year, an expansion of 63 basis points from 2.76 percent in 2021.

On an average basis, earning asset growth of $34 billion was largely driven by the $23 billion or 23 percent growth in loans to $119.3 billion and $13 billion of growth in the investment securities portfolio. Loan growth reflected the impact of the $36 billion People’s United portfolio on April 1, 2022, as well as new loans originated across our footprint. Loans and leases totaled $131.6 billion at the end of 2022, reflecting $4.1 billion in organic growth-that is excluding the acquired

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loan balances and the Paycheck Protection Plan or PPP loans, which declined $1.3 billion last year. Commercial and industrial loans comprised $6.1 billion of that organic loan growth last year and consumer loans-inclusive of consumer real estate loans-added an additional $1.6 billion in balances; together they outpaced the $3.6 billion decline in commercial real estate loan balances. At the end of last year, the mix of commercial and industrial, commercial real estate, and consumer loans was almost one-third each.

As 2022 began, M&T and our peers were still dealing with the impact of the government stimulus, and bank balance sheets were flush with large cash balances with limited options to invest. Loan demand was tepid and yields on investment securities were at historically low levels. As noted last year, we chose to be patient in investing the cash until rates offered a better return and there was less risk to our shareholders’ equity. As yields on investment securities and loans rose to levels meaningfully above those available in 2021, we reduced our interest-bearing cash balance by 40 percent to just under $25 billion at the end of last year, funding loan growth and purchasing investment securities. The timing of these actions allowed us to benefit from rising rates over the course of the year, simultaneously reducing the potential negative impacts of future rate declines.

Non-interest income, which includes fees associated with mortgage banking, trust, and deposit and loan services, amounted to $2.4 billion in 2022, improved by 9 percent from the prior year. These results include the $136 million gain on the sale of M&T Insurance

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Agency, Inc. (M&T Insurance) in October of last year. Excluding this gain, growth was driven largely by the acquired operations from People’s United and growth in trust income from legacy operations, which we refer to as Wilmington Trust. We were pleased with the 9.5 percent growth in legacy trust income, which outpaced the 19.4 percent decline in the S&P 500 performance last year. Reduced fee waivers on money market fund accounts-due largely to higher interest rates-contributed to about half of the legacy trust income growth, while the remainder was due to higher sales activity. Conversely, mortgage activity for both residential and commercial customers was pressured by the rapid rise in interest rates. When combined with our decision, late in 2021, to retain new loans for investment on our balance sheet, rather than generating fee income through their sale, mortgage banking revenues declined $215 million or 38 percent in 2022, to $357 million.

Non-interest expenses, on an operating basis, totaled $4.7 billion for the past year, an increase of 31 percent from the prior year. This includes a $135 million contribution to the M&T Charitable Foundation in the fourth quarter of 2022, but excludes $338 million of merger-related expenses. The higher level of operating expenses was due predominantly to the acquired People’s United operations-which accounted for almost three-fourths of the increase. After excluding the impact of People’s United and the charitable donation in the final quarter of last year, expense growth was 4.6 percent, a level above our historical averages. Salaries and benefits, which represent almost 60 percent of total operating expenses, were the largest source of expense growth last year. Excluding

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the acquired operations, salaries and benefits expenses grew 9.5 percent, which exceeded the 4.6 percent increase in average national hourly earnings, as we raised minimum wages and adjusted base pay levels for more than half of our employee base. This continued investment in talent is essential to our future growth and is in recognition of the extraordinary efforts of our committed employees during an eventful and often challenging year.

In a year where wage pressures would have made it difficult to generate positive operating leverage-our growth in revenues outpaced growth in expenses by 6 percent. The efficiency ratio, which expresses the cost to generate a dollar of revenue, improved more than two percentage points to 56.6 percent from 59.0 percent during 2021.

“Criticized” loans, which include nonaccrual loans and other loans deemed to have an elevated level of credit risk, remain above historical averages given the delayed recovery for certain industries as the economy continued to heal from the pandemic. Total criticized loans were $10.7 billion at the end of 2022-including $2.5 billion of loans acquired from People’s United-compared to $9.0 billion a year earlier. Criticized loans represented 8.1 percent of total loans and leases at the end of 2022, down from 9.7 percent a year earlier. Investor-owned commercial real estate loans represented 74 percent of total criticized loans and continue to consist of the major portfolios that were impacted by the pandemic-including hotel, retail, and health care. Criticized hotel loans have shown the most improvement, declining 41 percent compared to the end of 2021. The mix of retail

x

and health care loans considered criticized were relatively unchanged. Reflective of the reappraisal work done over the past few years, the weighted-average loan-to-value ratios for criticized investor-owned commercial real estate loans was approximately 65 percent, which provides a buffer against potential losses in these portfolios.

Nonaccrual loans, those on which we no longer accrue interest due to concerns over the borrower’s ability to repay them, rose $378 million to $2.4 billion. This reflects the $572 million loans deemed nonaccrual related to the acquisition of People’s United and was partially offset by a $194 million decrease in legacy M&T nonaccrual loans, due largely to lower hotel and residential mortgage nonaccrual loans. At the end of last year, nonaccrual loans declined to 1.9 percent of loans, compared to 2.2 percent a year earlier.

Our strong client selection, conservative and consistent underwriting, and steady asset valuations have allowed charge-off performance to remain below M&T’s average loss rate of 33 basis points over the past four decades. Net charge-offs, loans written off as uncollectable less recoveries on loans previously written off, amounted to $160 million or 13 basis points of average loans outstanding in 2022. The comparable figure was 20 basis points in 2021.

The provision for credit losses was $517 million during 2022, of which $242 million related to the accounting treatment of certain acquired loans under the current expected credit loss accounting principle-also known as “CECL.” This $242 million addition to the provision was recorded on April 1, 2022, for acquired loans deemed

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not to be purchased credit deteriorated-or “non-PCD”-and is considered a merger-related charge. Excluding the acquisition-related impact, the provision for credit losses was $275 million last year, compared with a $75 million recapture in 2021. The higher provision in 2022 was due to three factors: stronger loan growth, a change in the mix of loans in the portfolio, and a forecasted weakening of macroeconomic conditions. At the end of 2022, the allowance for credit losses totaled $1.93 billion, representing 1.46 percent of total loans, compared to $1.47 billion or 1.58 percent at the end of the previous year.

In a year when the top 25 commercial banks saw an average decline of 9.6 percent in tangible book value per share, our tangible book value per share declined by only 3.6 percent. The biggest driver of the reduction in tangible book value for peer banks was the impact rising rates had on their investment securities portfolios, requiring a reduction in the carrying value of those securities reflected as a reduction in equity. The smaller securities portfolio at M&T required a less impactful reduction in equity. It’s important to note that merger accounting often leads to reductions in the value of equity, commonly referred to in the industry as “dilution.” Only three other peers in the top 25 had a bank merger close in 2022. For M&T, the People’s United acquisition had a negative impact on tangible book value per share of $3.83. However, that merger-related dilution was largely earned back by year end-setting us up to continue our history of steady growth in tangible book value per share.

Prior to the April 1 merger, we sought to build our capital ratios by retaining net income and suspending common share repurchases. In 2022,

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we deployed capital in connection with the People’s United acquisition and restarted common share repurchases in the second quarter. Last year $1.8 billion-or 6 percent of outstanding shares were repurchased. The common stock dividend was $4.80 per share during 2022, rising 7 percent from the previous year and representing the sixth consecutive annual increase. Total distributions to common shareholders were $2.6 billion last year, compared to $584 million in 2021. Our capital level remains strong, with the Common Equity Tier 1 ratio-the measure most broadly used by the regulatory and investment communities to assess a bank’s safety and soundness-ending 2022 at 10.4 percent. In our view, there remains excess capital above what is necessary to safely run the bank.

In retrospect, 2022 was an extraordinary and successful year, however, that didn’t stop us from focusing the strategic lens on our existing collection of businesses. M&T has long been a leader in commercial real estate lending. We continue to invest in this business to support our customers and generate strong returns for our shareholders. Over recent years, regulation and capital efficiency has shifted the financing of commercial real estate-once the domain of banks like M&T-to the private sector. Advances in technology and innovation have also resulted in the creation of numerous financing vehicles for commercial real estate investors. We have chosen to modernize our suite of products and services to a growing cadre of customers and to leverage our commercial real estate lending expertise in a more capital-efficient manner. Over the past two years, we invested in our commercial real estate capabilities by enhancing capital market expertise, building

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partnerships with private non-bank financial institutions and debt funds, and expanding our business with Fannie Mae and Freddie Mac. We will continue to invest in our commercial real estate business to better serve customers and do so in the most capital-efficient manner possible.

We also made the strategic decision to exit two businesses-M&T Insurance, which was sold in the fourth quarter of last year, and the sale of the Collective Investment Trust business, which is expected to close in the first half of 2023. While both are good businesses, we lacked scale and the ability to maximize our expertise and generate the risk-adjusted returns our investors require. We were fortunate to find two partners that can seamlessly provide those capabilities to service our customers and provide career opportunities for those affected employees.

## PUTTING 2022 IN A BROADER CONTEXT

Reflecting on 2022, we generated top-quartile net operating returns on tangible assets and earnings per share growth when compared to the top 25 commercial bank holding companies in the country. Our return on tangible common equity again exceeded our cost of equity; an uninterrupted pattern we have repeated for at least the last 30 years.

We are often asked about our ability to sustain our historical financial performance into the future. Absent the availability of a crystal ball, we turn to our recent past for guidance. Looking at the last five years, where extreme fluctuations in interest rates, inflation, and unemployment impacted bank results, we are proud of our performance. Throughout, our return on tangible common equity has averaged 16.9 percent and net operating earnings per share grew at a compound annual growth rate

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of 10.3 percent. Such performance has exceeded the results we have produced for shareholders over the past 10 years-our own form of mean reversion.

## FIRST IMPRESSIONS MATTER

None of this leads us to be complacent, especially as we undertake to manage the largest acquisition in our history. We well understand that we will have to convince our new customers that we provide both reliable service and an ease of doing business-and also to convince our new shareholders that we can produce solid returns, reflected by measures such as earnings per share growth and consistent dividends. We are confident-but, again, not complacent-about achieving these goals.

Toward achieving those ends, nothing has been more important to M&T over the past year than the successful completion of the People’s United acquisition. Merging with this $63 billion institution has extended our consumer operations into five additional states throughout the Northeast, contiguous to our legacy markets. Based upon deposits, it was an acquisition two times larger than any of the previous 24 we have undertaken since 1985. It brought our model of banking-based on local relationships and understanding-to an additional 1.55 million commercial and consumer accounts. We believed and continue to believe that our approach to banking will prove to be a long-term advantage to the communities we have begun to serve.

Bank mergers and systems’ integrations are complex, challenging puzzles to solve, and the stakes are high. It could not be otherwise, not because our scale increased by some 40 percent, but because, in any

xv

merger, first impressions matter. They are inevitably influenced by the tradeoff between divergent goals such as convenience and security. We strive to get it right, each decision, every time, but recognize that perfect is an impossible standard, even for the most accomplished acquirers. In every merger we learn, often the proverbial hard way-but those lessons ultimately make the bank stronger, not just in our new markets, but everywhere.

Our merger with People’s United was no different. Candidly, we learned more than we cared to, at a cost to many of our customers and colleagues. We would be remiss, however, not to acknowledge these shortcomings so as to take the opportunity to learn and improve. Here’s our assessment of what we missed.

Our system conversion issues largely centered around online access and capabilities. The People’s United merger was the first one for M&T where online and mobile banking featured prominently. While it’s true that those capabilities existed when we merged with Hudson City in 2015 and Wilmington Trust in 2011, they weren’t woven into the fabric of everyday life to the extent they are today. That notwithstanding, we ambitiously set out to “convert” our new consumer and commercial customers to the M&T systems in such a way that they wouldn’t even notice the change. For many that was the case, for others, not so much. In banking, there is no “A” for effort.

For commercial customers, we aimed to provide a more robust suite of cash management services than they were using previously. However, the new services were more complex, and we underestimated

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the training and resources needed to assist customers in learning the systems and product set. For consumers, we sought to eliminate three substantial inconveniences when switching banks-more specifically setting up usernames, passwords, and entering bill pay information. Our behind-the-scenes security protections began on day one but lacked the transaction history necessary to effectively discern normal from abnormal behavior. In other words, we saw red flags when they weren't really there.

The result was a higher than tolerable rate of customers being locked out of their accounts, on their preferred device. This led to increased calls to our contact centers and long lines at branches, as customers chose to seek assistance from their trusted banker. The number of calls, a result of the previously mentioned challenges, tested our colleagues, exacerbating the frustration felt by our customers.

That there are explanations for what has occurred is not to offer excuses, especially when weighed against the disruption felt by those impacted customers and the stress and embarrassment experienced by our front-line colleagues. However, thanks to their commitment and dedication, the problems were short-lived.

First impressions matter. But so does long-term performance. Our sustained success has been predicated on being honest with ourselves about what we did well and what remains in need of improvement. When bringing two organizations together, we learn things worth knowing. In the case of our merger with People's United, we observed a broad set of practices we could adopt to enhance both customer and employee

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experience. We are under no illusion that having all of M&T’s 5.2 million customers on a single set of core operating systems suggests that our work is complete. We continue our work to gain-and regain-the trust on which all businesses, but especially banks, rely.

## REBUILDING TRUST

Nothing is more important to any business, but especially to a bank, than the trust of our customers and our colleagues. We well understand that, in our merger process with People’s United, we put that trust at risk. Newcomers are always likely to be greeted skeptically and our start was not auspicious. But we hope-and yes, trust-that the improvements we are making in our business practices coupled with a commitment to the communities where we do business will become manifest and reassure. We are the bank whose business model is based on forging relationships with our customers and their neighborhoods. We are the bank that comes to stay: In 55 zip codes, in cities, small towns, and rural areas, ours is the only bank branch remaining. We have no intention of “picking up our ball and going home.” We view each not as a means for short-term gain but as a generational investment.

We are equally committed to serve Bridgeport, Bennington, and Boston, among the 237 new cities we have entered, with the same vigor with which we serve Buffalo, Baltimore, and Bethesda. No matter where we operate, our goal is to be regarded as the hometown bank in each of our communities.

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## OUR MISSION AND OUR PURPOSE

Many years ago, our previous Chief Executive Officer, Bob Wilmers, was recognized in *The New York Times* for his decades-long impact on not just M&T Bank, but the entire banking industry. The title of the piece was “The Good Banker.” It highlighted-dare we say, celebrated-not just the financial accomplishments of M&T, but the commitment we have to the communities we serve. Bob instilled in our culture a deep-seated belief that doing well means doing good-that a company cannot succeed if the communities it serves aren’t also successful. That ethos persists as a defining aspect of our culture. At M&T Bank, community-focused banking isn’t so much a business philosophy as it is a way of life. Our colleagues do the right thing, not because someone told them to, but because acting in the best interest of our communities-their communities, their friends, and their neighbors-is the right thing to do and the only way forward.

Adversity does not develop character, it reveals character. Such is the case when a community is experiencing an acute need and the unfortunate case in our hometown of Buffalo on two tragic occasions over the past year. Within minutes of the murderous, racist rampage that took place in a local supermarket last May, we learned that the lives of 10 Buffalo neighbors had been lost. We feared for loved ones. We grieved. So, we did what felt right. We channeled our grief into action. Our employees responded instinctively-not because their company told them to or even granted them permission-rallying to a cause when their community most needed them. A group of our colleagues organized and

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joined vigils to signal our collective rejection of hatred. Another team of enterprising employees converted our Jefferson Avenue branch, mere steps from the scene of the shooting, into a food distribution center that helped fill a gap while the impacted grocery store was shuttered. Within days, the ATMs were surrounded by canned goods and packages of diapers, including significant donations by M&T employees, from not just Buffalo, but from many of our communities.

So, it was again in the teeth of the deadly late December Winter Storm (Elliott) that blinded and paralyzed Buffalo and much of Western New York, leading to the deaths of nearly 50 people. Again, we did, financially, what a good corporate citizen should do-for example donating blankets, hats, gloves, and shovels to the Red Cross. But, again, there was more. Not only did M&T volunteers help distribute those supplies, but they helped to convert the corporate cafeteria at M&T Center into a food hall for the snowplow drivers, EMTs, and other first responders who were working around the clock for days. With stores and restaurants closed, the converted cafeteria became a place not just for coffee and meals-but an oasis for vital respite.

This commitment by our employees is far from limited to Buffalo. Each time we enter a new market, our employees quickly make it seem as though we’ve been there forever-working, as we do, to embed ourselves into the very fabric of each community. Take, for instance, our involvement with Zip Code Wilmington or New Jersey Black Entrepreneurs Strive and Thrive (BEST) Program or Baltimore City’s Weaver Awards. In Bridgeport, our team launched a Multicultural Small Business Innovation

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Lab. The list is long and each community is distinct. The constant is our desire-and that of our colleagues-to identify needs that transcend banking and help to address them. In short, to make a difference in people’s lives.

That is the standard level of community commitment and dedication to which we will hold ourselves-and expect to be held-in Bridgeport, Portland, and Manchester, and all the places into which the People’s United merger has now introduced us. If we fall short, we expect to be told-and we will listen. Your feedback and patience are gifts for which we are most grateful.

## INFLATION AND OUR CUSTOMERS

We do well to remind ourselves that M&T and our balance sheet are a reflection of our customers and the communities we serve. Early in the pandemic they built liquidity by drawing on lines of credit and holding cash. Generous stimulus programs allowed them to repay those early line draws while maintaining larger deposits in their accounts. This past year, customers, like us, were dealing with economic conditions-the pace of inflation and rising rates-that, either individually or in aggregate, have been experienced by precious few. The Treasury Secretary was a young economics professor at Harvard and the head of the Federal Reserve had just completed grad school the last time such an economy existed. Said differently, everyone was learning how to navigate in this uniquely transitioning economy.

xxi

We have been worried about inflation and its impact on our customers. Our specific concern has been that growth in expenses would outpace wages for consumers and reduce profit margins for businesses, forcing both groups to dip into the savings they amassed during the pandemic. To our surprise, the impact of inflation has so far been relatively muted, especially for consumers.

To build a deeper understanding of consumer trends, similar to last year, we analyzed two groups of customers, one we considered the “financially vulnerable” and the other “savers.” Financially vulnerable customers are those with prepandemic deposit balances of less than $2,500. As a group, their accounts averaged $940 prepandemic-leaving them little margin for error should their car need a new transmission or their house a new furnace. Savers included customers with more than $2,500 in their accounts, prepandemic. Last year, we observed that customers in both segments had seen substantial increases in their deposit balances due to a combination of stimulus and reduced spending during the pandemic. The effects of inflation hadn’t yet eroded their balance growth nor were interest rates attractive enough for customers to move their money to higher-yielding accounts.

Over the past year, the impact of inflation is clearly visible for the financially vulnerable. We see that their monthly cost of living did, in fact, increase at an annual rate of 15.0 percent, driven by increases in daily expenses. Specifically, spending increased an annualized 12.9 percent for gas, 12.1 percent for auto loan payments, and 6.0 percent for groceries. However, this segment of customers experienced an almost equal uptick

xxii

in monthly inflows, witnessing an annualized 12.6 percent increase in cash coming into their accounts. The net result is after peaking in the second quarter of 2022, deposit balances for the financially vulnerable ended the year at $3,530, slightly up from 2021, but comfortably above their prepandemic level. In short, this group is holding their own against inflation.

The story for customers we refer to as savers is also relatively positive, although more nuanced. Savers also saw their deposit balances peak in the second quarter of 2022 before declining the remainder of the year. From a cash flow perspective, we see that savers have also been impacted by inflation but appear to have been better able to adjust their spending habits. They saw an annualized 4.4 percent increase in monthly outflows-a smaller figure than their financially vulnerable counterparts-as they reduced their consumption. This was important, as savers’ monthly inflows were essentially unchanged compared to prepandemic levels. Similar to low-balance customers, savers, and their deposit balances, were not materially impacted by inflation.

We did, however, observe a marked and significant change in how savers with greater than $10,000 in balances invested their cash. Beginning in April, we can see this subset of our customers started to move their money to high-rate accounts at an accelerating pace, more than doubling their investment in high yield products compared to 2021. TreasuryDirect-an online portal where individuals and companies can buy and redeem U.S. savings bonds directly from the U.S. Treasury-became a meaningful recipient of customer deposits, accounting for

xxiii

more than 40 percent of these outflows in 2022, compared to just below a third a year earlier. When we were kids, our parents and grandparents went to their bank to buy U.S. savings bonds, now our kids are going online to buy directly from the U.S. Treasury.

The effects of the rapid shift in monetary policy on bank balance sheets and the economy is still being understood. The “playbook” to cool down an overheated economy is broadly acknowledged: raise rates, slow down capital expenditure and hiring, lower employment. The last time the “playbook” was deployed, population dynamics were vastly different than today, reducing the impact of monetary policy on employment. The magnitude of the pandemic and Great Financial Crisis necessitated a non-standard response. Each cycle is different and this one has yet to play itself out. The fact that our low-savings customers have not been adversely affected by inflation to date is good news. At the same time, if the gap between their income growth and price increases continues, even at its present pace, it would not be a welcome trend. None of this is to say a soft landing is not possible. Nor is it to foreshadow an impending issue. Rather, we are reminded that economic cycles persist, and that we and our customers are preparing for what might lie ahead.

xxiv

## PERSONAL REFLECTIONS AND GRATITUDE

Late last year, Calvin Butler notified us of his intention to step down from the M&T Board of Directors. While Calvin’s time with us was short in “M&T years,” having joined our board mid-year in 2020, his impact will be long lasting. Calvin’s professional experience of progressively senior roles at Exelon Corporation, culminating with being named President and Chief Executive Officer, has helped shape our board and our management team. His voice and inspirational leadership have been felt throughout the company as we grow and support inclusive and equitable opportunities in Baltimore and communities across our footprint. We are proud of his accomplishments and grateful that he will continue to serve as a community partner and friend to the bank as he becomes one of just seven Black CEOs leading Fortune 500 companies.

The past year is one we won’t soon forget. We endured tragedy and pushed through disappointment. We learned a great deal about the world and about how we can improve our bank to better serve our customers.

A community-focused banking model fails quickly without model community bankers who work tirelessly to cultivate customer relationships and then work harder, still, to figure out what matters to a community and how they might then solve a problem and make a difference.

We learned that technology does not always work as expected-but that relationships are enduring. It was our people who comforted our customers and helped make things right.

xxv

We learned that our mettle would continue to be tested-often by circumstances that would have seemed unimaginable-but that the indomitable spirit of a community-of our M&T community-cannot be broken.

We look forward only with optimism-comforted by the astounding resiliency and adaptability of our colleagues. Time and again-through pandemics, through conversions, through all manner of unspeakable tragedies-you have proven that no challenge is too great to overcome. You respond with alacrity, swarming problems with ingenuity and the entrepreneurial spirit that is essential to a community bank. Permission isn’t sought. Trust has been earned.

Our community of bankers is now larger than ever before-numbering some 22,807. We’re heartened by that-there’s a great more for us to do together. It’s a privilege to call you my colleagues.

René F. Jones
Chairman of the Board
and Chief Executive Officer

February 24, 2023

xxvi

# M&T BANK CORPORATION

# Officers and Directors

# OFFICERS

René F. Jones
Chairman of the Board
and Chief Executive Officer

Richard S. Gold
President and Chief
Operating Officer

Kevin J. Pearson
Vice Chairman

Robert J. Bojdak
Senior Executive Vice President
and Chief Credit Officer

Peter G. D'Arcy
Senior Executive Vice President

Christopher E. Kay
Senior Executive Vice President

Darren J. King
Senior Executive Vice President
and Chief Financial Officer

Doris P. Meister
Senior Executive Vice President

Laura P. O'Hara
Senior Executive Vice President
and Chief Legal Officer

Michael J. Todaro
Senior Executive Vice President
and Chief Risk Officer

Michele D. Trolli
Senior Executive Vice President

Julianne Urban
Senior Executive Vice President
and Chief Auditor

D. Scott N. Warman
Senior Executive Vice President
and Treasurer

Jennifer Warren
Senior Executive Vice President

Tracy S. Woodrow
Senior Executive Vice President
and Chief Administrative Officer

Michael R. Spychala
Executive Vice President
and Controller

# DIRECTORS

René F. Jones
Chairman of the Board
and Chief Executive Officer

Robert T. Brady
Vice Chairman of the Board
Former Chairman of the Board
and Chief Executive Officer
Moog Inc.

John P. Barnes
Former Chairman and
Chief Executive Officer
People's United Financial, Inc.

Carlton J. Charles
Senior Vice President of
Treasury and Risk Management
Hearst

Jane Chwick
Former Partner and Co-COO
of the Technology Division
Goldman Sachs

William F. Cruger, Jr.
Former Vice Chairman of
Investment Banking
J.P. Morgan Chase & Co.

T. Jefferson Cunningham III
Former Chairman of the Board
and Chief Executive Officer
Premier National Bancorp, Inc.

Gary N. Geisel
Former Chairman of the Board
and Chief Executive Officer
Provident Bankshares
Corporation

Leslie V. Godridge
Former Vice Chairman and
Co-Head of Corporate and
Commercial Banking
US Bancorp

Richard H. Ledgett, Jr.
Former Deputy Director
and COO
National Security Agency

Melinda R. Rich
Chairman
Rich Products Corporation

Robert E. Sadler, Jr.
Former President and
Chief Executive Officer
M&T Bank Corporation

Denis J. Salamone
Former Chairman and
Chief Executive Officer
Hudson City Bancorp, Inc.

John R. Scannell
Chairman of the Board
and Former Chief
Executive Officer
Moog Inc.

Rudina Seseri
Founder and Managing Partner
Glasswing Ventures

Kirk W. Walters
Former Senior Executive
Vice President
People's United Financial, Inc.

Herbert L. Washington
President
H.L.W. Fast Track, Inc.

xxvii

M&T BANK

Officers and Directors

OFFICERS

René F. Jones
Chairman of the Board
and Chief Executive Officer

Richard S. Gold
President and Chief
Operating Officer

Kevin J. Pearson
Vice Chairman

Senior Executive
Vice Presidents

Richard Michael Barry
Keith M. Belanger
Robert J. Bojdek
Ira A. Brown
R. Joe Crosswhite
Peter G. D'Arcy
Donald P. DiCarlo, Jr.
Michael A. Drury
William J. Farrell II
Eric B. Feldstein
Gregory Imm
Christopher E. Kay
Michael J. Keane
Michael T. Keegan
Darren J. King
William T. LaFond
Francesco Lagutaine
Joseph A. Lombardo
Matthew J. McAfee
Richard J. McCarthy
Doris P. Meister
Abigail Mrozinski
Laura P. O'Hara
Peter J. Olsen
Anthony M. Roth
Ann Silverman
Patrick J. Sullivan
Michael J. Todaro
Christopher E. Tolomeo
Michele D. Trolli
Julianne Urban
D. Scott N. Warman
Jennifer Warren
Michael A. Wisler
Tracy S. Woodrow

Executive Vice Presidents

Garrett M. Alton
Timothy S. Avendt
Philip M. Barbagallo
Robert Barnett
John F. Beard
Brian D. Beitz
Deborah A. Bennett
Michael D. Berman
Kristy L. Berner
Beth Beshaw
Paul A. Best
Samuel A. Bluso
Mallory R. Boron
Jonathan D. Braun
Albert W. Broadbent, Jr.
Arthur J. Bronson
Theodore A. Brown
Christina A. Brozyna
John G. Bundschuh
Susan Burgos
Daniel J. Burns
Matthew S. Calhoun
Christopher Callaghan
David Carpenter
Jeffrey Carpenter
Scott D. Carpenter
Mark I. Cartwright
Kevin J. Cavalieri
Rajeev Chadda
Christine R. Chandler
August J. Chiasera
Brooke Cianfichi
Anthony J. Ciaramella
Michael J. Ciborowski
Matthew A. Cohen
Josephine R. Cole
Garth J. Collins
Thomas H. Comiskey
Francis M. Conway
Christopher E. Copeland
Jon D. Coppola
Chavuanne Cousins
Denise M. Cramer
Christopher G. Cunningham
Carol A. Dalton
David J. D'Amico
Ayan DasGupta
Leslie A. Deich
F. Jim Della Sala
Anthony Delmonte, Jr.
Crit DeMent

Dominick J. D'Eramo
Ishet Dhar
David M. Diluigi
David Dixon, Jr.
Timothy M. Doheny
Abigail Doolittle
Jeffrey R. Dorschuck
Bradley Dossinger
John Doucette
John P. Dysart
Michael L. Edelman
Matyas W. Egyhazy
Steven H. Epping
Thomas F. Esposito
Peter J. Esposito
Jeffrey A. Evershed
Bethany D. Fancher-Herbert
Christopher G. Faulkner
John H. Federici
Bruce H. Figueroa
Anca Filippi
Francisco J. Fonseca
Trevor J. Foote
Colleen A. Foy
John D. Francisco
James M. Frank
Timothy Frederick
Pamela Friedman
Alberto Garcia
James S. Gates
Harold F. Geissler
Richard A. Gieseler
Hugh Giorgio
Matthew D. Glaser
Brian M. Goldwater
John V. Golio
Stephen J. Gorczynski
Mark D. Gould
Alan E. Govern
Robert S. Graber
Meghan Greeley
Brady A. Green
Carol N. Grosso
Maryanne Gruys
Lisa M. Gubernick
Manish Gupta
Scott D. Guthrie
Nora A. Habig
James B. Hallock
Vishal Haria
Greg A. Hartin
Andrew J. Hartridge

Matthew S. Haslinger
Jarod T. Haslinger
Jodie Healey
Melissa J. Heavern
Miles Herman
Robert V. Hintelmann
Cecilia A. Hodges
Harish A. Holla
Eric G. Hosie
F. Mackey Hughes
Mark R. Hutton
Richard J. Iovanne
Glenn S. Jackson
Beverly J. Jarmiołowski
Philip R. Jaskot
Julie E. Jehrio
Mohammad F. Jishi
Philip H. Johnson
George M. Joseph
Walter W. Kaercher, Jr.
Christopher Kania
David J. Keenan
Sharon Klein
Brian Klock
Thomas C. Koppmann
Andrea Kozlowski
Frederick M. Krajacic
Jason L. Kyler
Nicholas P. Lambrow
Grace H. Lee
Matthew Lind
Jason W. Lipiec
Alvina A. Lo
Christina Longo
Robert G. Loughrey
Diane M. Luksch
David W. Lulas
Christopher T. Lyon
Susan F. MacDonald
Laurel Magruder
Richard J. Marsh, Jr.
Colleen M. Marsh
John T. Mast
Giuseppe Mastroeli
James H. Mayes, Jr.
Sean P. McCabe
Michael P. McCarthy
Barry J. McKenzie
Robert P. McKeon
David R. Mesnick
Frank P. Micalizzi
Christopher R. Morphew

xxviii

M&T BANK

Officers and Directors (Cont'd)

Joseph M. Morrison
Timothy P. Mowdy
Marguerite E. Mugge
Aarthi Murali
Patrick Murphy
Marjan N. Murray
Anne E. Musynske
Kristin A. Nebral
Olga L. Negoreva
Mark Nelson
Rammie J. Nesheiwat
Peter G. Newman
Christopher F. Nichols
Brian J. Nourie
Brian M. Oard
Kelly A. O'Brien
Ann Marie Odrobina
James D. O'Hoppe
John Park
Michael G. Paszkiewicz
Phillip A. Patrone
Everett Pefley
Timothy Perrotta
Mark J. Perry
Anthony I. Petrazzuoli
Matthew Petrula
Robert Phillips
Charles D. Pinckney
Justin D. Poser
Frederick F. Potter
Melissa J. Prohaska
Drew M. Pullen
Margaret F. Rafalli
Christopher D. Randall
Rajiv Ranjan
Michael M. Reilly
Richard G. Reustle
Ferdinand A. Riccio
Blair Ridder
Kirk J. Ringer
Anthony Rosado
David J. Rubin
Rajwinder Sanghera
Steven G. Santino
Michael T. Schweighoffer
Michael L. Seaver
Jess Seburn
Douglas A. Sheline
Archana Shenoy
William M. Shickluna
Bernard T. Shields
Meghan A. Shue
Cris Sigovitch

Jeffrey E. Simmons
Barbara L. Simmons
Michael D. Sinclair
David F. Skaff
Gregory C. Smith
Sonny J. Sonnenstein
Albert Spada
Michelle Speranza
Sean P. Spiesz
Michael R. Spychala
Mark J. Stellwag
Nadja C. Steve
Douglas R. Stevens
Kevin M. Stoklosa
Joseph P. Sullivan
Deana Summerson
Frank Sutton
Patrick J. Tadie
Nicholas D. Tally
Jeffrey R. Tarte
Eric W. Taylor
John R. Taylor
George Taylor
Daniel P. Thornton
Anne Tiberia
Luke Tilley
Sean V. Timms
Samuel B. Tingley, Jr.
Anil Tondavadi
Patrick M. Trainor
Robert L. Turnipseed, Jr.
Michael G. Urquhart
Brian P. Valenti
Randy H. Vogel
Medita Vucic
Timothy P. Wade
Melissa Walker
Neil Walker-Neveras
Leslie M. Wallace
Brian S. Walter
Richard Wargo
Cindy L. Warkentin
Indy N. Weerasinghe
Robert C. Wehner, Jr.
Michael W. Weinstock
Sara A. Wilbur
Kenneth S. Williams
John R. Wolfe, Jr.
Lowell W. Yoder
Patrick R. Young
Erik J. Zeppuhar

DIRECTORS

René F. Jones
Chairman of the Board
and Chief Executive Officer

John P. Barnes
Former Chairman and
Chief Executive Officer
People's United Financial, Inc.

Robert T. Brady
Former Chairman of the Board
and Chief Executive Officer
Moog Inc.

Carlton J. Charles
Senior Vice President of
Treasury and Risk Management
Hearst

Jane Chwick
Former Partner and Co-COO
of the Technology Division
Goldman Sachs

William F. Cruger, Jr.
Former Vice Chairman of
Investment Banking
J.P. Morgan Chase & Co.

T. Jefferson Cunningham III
Former Chairman of the Board
and Chief Executive Officer
Premier National Bancorp, Inc.

Gary N. Geisel
Former Chairman of the Board
and Chief Executive Officer
Provident Bankshares
Corporation

Leslie V. Godridge
Former Vice Chairman and
Co-Head of Corporate and
Commercial Banking
US Bancorp

Richard S. Gold
President and Chief
Operating Officer

Richard H. Ledgett, Jr.
Former Deputy Director
and COO
National Security Agency

Kevin J. Pearson
Vice Chairman

Melinda R. Rich
Chairman
Rich Products Corporation

Robert E. Sadler, Jr.
Former President and
Chief Executive Officer
M&T Bank Corporation

Denis J. Salamone
Former Chairman and
Chief Executive Officer
Hudson City Bancorp, Inc.

John R. Scannell
Chairman of the Board
and Former Chief
Executive Officer
Moog Inc.

Rudina Seseri
Founder and Managing Partner
Glasswing Ventures

Kirk W. Walters
Former Senior Executive
Vice President
People's United Financial, Inc.

Herbert L. Washington
President
H.L.W. Fast Track, Inc.

xxix

M&T BANK

# Regional Management and Directors Advisory Councils

# AREA EXECUTIVES

Ira A. Brown  
R. Joe Crosswhite  
Patrick Sullivan

# REGIONAL PRESIDENTS

Daniel J. Burns  
*Rochester*  
Jeff Evershed  
*Portland*  
Eric B. Feldstein  
*Western New York*  
Stephen Gorczynski  
*Central New York*  
Jason Lipiec  
*Long Island*  
Peter G. Newman  
*Southern New York*  
Charles Pinckney  
*Albany*  
Blair Ridder  
*New York City*  
Tyre Robinson  
*Tarrytown*  
Mark J. Stellwag  
*Hudson Valley*  
August J. Chiasera  
*Baltimore*  
Thomas H. Comiskey  
*New Jersey*  
Nora Habig  
*Central/Western Pennsylvania*  
Cecilia A. Hodges  
*Greater Washington and Central Virginia*  
Philip H. Johnson  
*Northern Pennsylvania*  
Thomas C. Koppmann  
*Southeast Pennsylvania*  
Nicholas P. Lambrow  
*Delaware*  
Grace Lee  
*Eastern Massachusetts and Western Massachusetts*

Frank P. Micalizzi

*Bridgeport*

Michael Seaver

*Vermont*

Bernard T. Shields  
*Philadelphia/Southern New Jersey*

Dan Thornton

*Maine*

*New Hampshire*

Brian Walter

*Chesapeake*

Michael Weinstock *Hartford*

Richard A. Gieseler *Florida*

# DIRECTORS

# ADVISORY COUNCILS

# NEW YORK STATE

# Albany Division

Kevin M. Bette  
Nancy E. Carey Cassidy  
Richard A. Fuerst  
Michael Joyce  
Susan M. Kerber  
William Lia, Jr.  
Lisa M. Marrello  
Michael C. McPartlon  
James E. Spencer, Jr.  
Lauren Van Dermark

# Central

# New York Division

J. Andrew Breuer  
Me'Shae Brooks-Rolling  
Mark Vincent Byrne  
Mara Charlamb  
Alicia Dicks  
Karyn Korteling  
Joseph T. Mancuso  
Scott A. Shatraw  
Sheena Solomon  
Melissa F. Zell

# Hudson Valley Division

Elizabeth P. Allen  
Kevin J. Conroy  
T. Jefferson Cunningham III  
Julie Forman  
John K. Gifford  
Michael H. Graham  
William Murphy  
Patrick D. Paul  
Andrea L. Reynolds  
Lewis J. Ruge  
Thomas R. Smiley

# Jamestown Division

Sebastian A. Baggiano  
John R. Churchill  
Steven A. Godfrey  
Joseph C. Johnson  
Stan Lundine  
Randall P. Manitta  
Michael D. Metzger  
Kim Peterson  
Tim M. Shults  
Michael J. Wellman

# New York City/Long Island Division

Martin Seth Burger  
Patrick J. Callan  
John F. Cook  
Anthony J. Dowd III  
Lloyd M. Goldman  
Leslie Wohlman Himmel  
Gary Jacob  
William J. Mulrow  
Mickey Rabina  
Don M. Randel  
John C. Simons  
Mike Smart  
Alair A. Townsend

# Rochester Division

Marlene Bessette  
William A. Buckingham  
Dr. DeAnna Burt-Nanna  
R. Carlos Carballada  
Daniel J. Chessin  
Christopher J. Czarnecki  
Oksana S. Dominach  
Timothy D. Fournier  
Jocelyn Goldberg-Schaible  
Seanelle Hawkins  
Brian E. Hickey  
Matthew C. Hurlbutt  
Marc L. Iacona, Sr.  
Laurence Kessler  
Jett Mehta  
Dwight M. Palmer  
Victor E. Salerno  
Derace L. Schaffer  
Andrew Sewnauth  
Kevin R. Wilmot

# Southern

# New York Division

John M. Carrigg  
Joseph W. Donze  
Sheila Doyle  
John Meier  
Albert Nocciolino  
Thomas A. Pasquale  
James Pennefeather  
Michelle Rodgers  
Glenn Robert Small  
Robert R. Sprole III

# Tarrytown Division

Raja R. Amar  
Courtney E. Boniface  
Navy E. Djonovic  
James F. Dolan  
Jan Fisher  
Joseph C. Gallo  
Bruce Gebhardt  
Robert Glazer  
Howard Hellman  
Moses 'Moshe' Kohn  
Carlos Z. Martinez  
Kyle C. McGovern  
Joanna Simone  
Sara Tucker

xxx

M&T BANK

# Regional Management and Directors Advisory Councils (Cont'd)

# **MID-ATLANTIC**

# **Baltimore-Washington  
Division**

Molly Stevenson Baldwin  
Thomas S. Bozzuto, Jr.  
Jeffrey S. Detwiler  
Scott E. Dorsey  
Steve Dubin  
David D. Flanagan  
Gary N. Geisel  
Nancy Greene  
Richard A. Grossi  
Cheo Dates Hurley  
Rick Kohr, Jr.  
John H. Phelps  
Marc B. Terrill  
Ernest J. Vaile

# **Central**

# **Pennsylvania Division**

Mark X. DiSanto  
Ronald M. Leitzel  
John P. Massimilla  
Craig J. Nitterhouse  
Ivo V. Otto III  
William F. Rothman  
Herbert E. Sandifer  
Michael J. Schwab  
John D. Sheridan  
Glen R. Sponaugle  
Daniel K. Sunderland  
Christopher D. Trogner  
Angela M. Ulen  
Sondra Wolfe Elias

# **Central Virginia Division**

Robert J. Clark  
Daniel Jon Loftis  
Bart H. Mitchell  
Brian R. Pitney  
Debbie L. Sydow

# **Chesapeake**

# **Upper Shore Division**

Hugh E. Grunden  
William W. McAllister, Jr.  
Lee McMahan  
Chad J. Nagel

# **Chesapeake**

# **Lower Shore Division**

Michael G. Abercrombie, Jr.  
Ashley Elizabeth Harrison  
John M. McClellan  
James F. Morris  
Ashley M. Stern

# **Eastern**

# **Pennsylvania Division**

Paul J. Datte  
Steven I. Field  
Roy A. Heim  
Joseph H. Jones, Jr.  
David C. Laudeman  
Eric M. Mika  
Jeanne Boyer Porter

# **New Jersey Division**

Michael W. Azzara  
Alfonso 'Al' Daloisio, Jr.  
Dante Germano  
Sally Glick  
L. Robert Lieb  
Marjorie Perry  
Lyneir Richardson  
Paul Silverman  
Robert Silverman

# **Northeast**

# **Mid-Atlantic Division**

Richard Alter  
Christopher A. Boyle  
Linda Sue Comer  
Dave Crisp  
Thomas C. Mottley  
Harry O'Neill  
George S. Robinson, IV

# **Northern**

# **Pennsylvania Division**

Richard S. Bishop  
Christopher L. Borton  
Maureen M. Bufalino  
Jeffrey A. Cerminaro  
Stephen N. Clemente  
Kenneth R. Levitzky  
J. David Smith  
Thomas F. Torbik  
Murray Ufberg

# **Philadelphia Division**

Nick Bayer  
Emily L. Bittenbender  
Sandra D. Brown  
Edward M. D'Alba  
Lauren Mary Gilchrist  
William A. Golderer  
Ronald V. Jaworski  
Ashish Parikh  
Stephanie C. Schaeffer  
Ann D. Thomas  
Joseph J. Volpe

# **Western**

# **Pennsylvania Division**

Jodi L. Cessna  
Paul I. Detwiler III  
Philip E. Devorris  
Michael A. Fiore  
Joseph A. Grappone  
Jeffrey S. Long  
Robert F. Pennington  
Joseph S. Sheetz  
William T. Ward  
J. Douglas Wolf

# **NEW ENGLAND**

# **Bridgeport Division**

Collin P. Baron  
George P. Carter  
John K. Dwight  
Jerry Franklin  
Janet M. Hansen  
Nancy McAllister  
Mark W. Richards

# **Eastern**

# **Massachusetts Division**

Harrison R. Bane  
Adam Berman  
Jeffrey Black  
Danielle B. Breton  
Patrick M. Browne  
Jonathan G. Davis  
Alphonso O'Neil-White  
Michael E. Sklar  
Jennifer Stebbins Thomas

# **FLORIDA**

Paul Baldovin  
Atwood Collins  
Rebecca G. Doane  
Kenneth R. Kennerly  
Hans E. Kraaz  
Joseph Lubeck  
Robert E. Sadler, Jr.

xxxi

DIRECT STOCK PURCHASE
AND DIVIDEND
REINVESTMENT PLAN

A plan is available to common shareholders and the general public whereby shares of M&T Bank Corporation's common stock may be purchased directly through the transfer agent noted below and common shareholders may also invest their dividends and voluntary cash payments in additional shares of M&T Bank Corporation's common stock.

INQUIRIES

Requests for information about the Direct Stock Purchase and Dividend Reinvestment Plan and questions about stock certificates, dividend checks, direct deposit of dividends or other account information should be addressed to M&T Bank Corporation's transfer agent, registrar and dividend disbursing agent:

(Regular Mail)

Computershare

P.O. Box 43078

Providence, RI 02940-3078

(Overnight, Certified and Registered Mail)

Computershare

150 Royall Street

Canton, MA 02021

1-866-293-3379

E-mail address: web.queries@computershare.com

Web address: www.computershare.com/mbnk

Requests for additional copies of this publication or annual or quarterly reports filed with the United States Securities and Exchange Commission (SEC Forms 10-K and 10-Q), which are available at no charge, may be directed to:

M&T Bank Corporation

Shareholder Relations Department

One M&T Plaza, 8th Floor

Buffalo, NY 14203-2399

716-842-5138

E-mail address: ir@mtb.com

All other general inquiries may be directed to: 716-635-4000

WEB ADDRESS

www.mtb.com

QUOTATION AND TRADING
OF COMMON STOCK

M&T Bank Corporation's common stock is traded under the symbol MTB on the New York Stock Exchange ("NYSE").

**M&T** Bank Corporation  
mtb.com

# **UNITED STATES**
**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

# **Form 10-K**

☑ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the fiscal year ended December 31, 2022

or

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Commission file number 1-9861

# **M&T BANK CORPORATION**

(Exact name of registrant as specified in its charter)

**New York**

(State of incorporation)

**16-0968385**

(I.R.S. Employer Identification No.)

**One M&T Plaza, Buffalo, New York**

(Address of principal executive offices)

**14203**

(Zip Code)

Registrant's telephone number, including area code:

**716-635-4000**

Securities registered pursuant to Section 12(b) of the Act:

**Title of Each Class**

Common Stock, $.50 par value
Perpetual Fixed-to-Floating Rate

**Trading Symbols**

MTB

MTBPrH

**Name of Each Exchange on Which Registered**

New York Stock Exchange

New York Stock Exchange

Non-Cumulative Preferred Stock, Series H

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑

Non-accelerated filer ☐

Emerging growth company ☐

Accelerated filer ☐

Smaller reporting company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

Aggregate market value of the Common Stock, $0.50 par value, held by non-affiliates of the registrant, computed by reference to the closing price as of the close of business on June 30, 2022: $27,304,085,267.

Number of shares of the Common Stock, $0.50 par value, outstanding as of the close of business on February 17, 2023: 167,792,740 shares.

# **Documents Incorporated By Reference:**

(1) Portions of the Proxy Statement for the 2023 Annual Meeting of Shareholders of M&T Bank Corporation in Parts II and III.
Auditor Firm Id: 238 Auditor Name: PricewaterhouseCoopers LLP Auditor Location: Buffalo, NY, United States

# **M&T BANK CORPORATION**
Form 10-K for the year ended December 31, 2022
CROSS-REFERENCE SHEET

|  | Form 10-K Page |
| --- | --- |
| PART I |  |
| Item 1. Business | 1 |
| Disclosure pursuant to subpart 1400 of Regulation S-K |  |
| I. Distribution of assets, liabilities, and shareholders' equity; interest rates and interest differential |  |
| A. Average balance sheets | 63 |
| B. Interest income/expense and resulting yield or rate on average interest-earning assets and interest-bearing liabilities | 63 |
| C. Rate/volume variances | 23 |
| II. Investments in debt securities |  |
| A. Maturity schedule and weighted average yield | 94 |
| III. Loan portfolio |  |
| A. Maturity schedule | 92 |
| IV. Allowance for credit losses |  |
| A. Credit ratios | 75-79 |
| Factors driving material changes in credit ratios or related components | 74-84, 135, 139-145 |
| B. Allocation of the allowance for credit losses | 84, 139 |
| V. Deposits |  |
| A. Average balances and rates | 63 |
| B. Uninsured and time deposits over $250,000 | 70-71, 95 |
| Item 1A. Risk Factors | 24 |
| Item 1B. Unresolved Staff Comments | 46 |
| Item 2. Properties | 46 |
| Item 3. Legal Proceedings | 47 |
| Item 4. Mine Safety Disclosures | 47 |
| Executive Officers of the Registrant | 47 |
| PART II |  |
| Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 51 |
| A. Principal market | 51 |
| B. Approximate number of holders at year-end | 21 |
| C. Frequency and amount of dividends declared | 22-23, 109, 121 |
| D. Restrictions on dividends | 8 |
| E. Securities authorized for issuance under equity compensation plans | 51 |
| F. Performance graph | 52 |
| G. Repurchases of common stock | 53 |
| Item 6. Selected Financial Data | 53 |
| Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | 53 |
| Item 7A. Quantitative and Qualitative Disclosures About Market Risk | 111 |
| Item 8. Financial Statements and Supplementary Data | 111 |

| A. Report on Internal Control Over Financial Reporting | 112 |
| --- | --- |
| B. Report of Independent Registered Public Accounting Firm | 113 |
| C. Consolidated Balance Sheet - December 31, 2022 and 2021 | 117 |
| D. Consolidated Statement of Income - Years ended December 31, 2022, 2021 and 2020 | 118 |
| E. Consolidated Statement of Comprehensive Income - Years ended December 31, 2022, 2021 and 2020 | 119 |
| F. Consolidated Statement of Cash Flows - Years ended December 31, 2022, 2021 and 2020 | 120 |
| G. Consolidated Statement of Changes in Shareholders’ Equity - Years ended December 31, 2022, 2021 and 2020 | 121 |
| H. Notes to Financial Statements | 122 |
| I. Quarterly Trends | 109 |
| Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 193 |
| Item 9A. Controls and Procedures | 193 |
| A. Conclusions of principal executive officer and principal financial officer regarding disclosure controls and procedures | 193 |
| B. Management’s annual report on internal control over financial reporting | 193 |
| C. Attestation report of the registered public accounting firm | 193 |
| D. Changes in internal control over financial reporting | 193 |
| Item 9B. Other Information | 193 |
| Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 193 |
| PART III |  |
| Item 10. Directors, Executive Officers and Corporate Governance | 193 |
| Item 11. Executive Compensation | 194 |
| Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 194 |
| Item 13. Certain Relationships and Related Transactions, and Director Independence | 194 |
| Item 14. Principal Accountant Fees and Services | 194 |
| PART IV |  |
| Item 15. Exhibits and Financial Statement Schedules | 195 |
| Item 16. Form 10-K Summary | 197 |
| SIGNATURES | 198 |

# PART I

## Item 1. *Business.*

M&T Bank Corporation (“Registrant” or “M&T”) is a New York business corporation which is registered as a financial holding company under the Bank Holding Company Act of 1956, as amended (“BHCA”) and as a bank holding company (“BHC”) under Article III-A of the New York Banking Law (“Banking Law”). The principal executive offices of M&T are located at One M&T Plaza, Buffalo, New York 14203. M&T was incorporated in November 1969. M&T and its direct and indirect subsidiaries are collectively referred to herein as the “Company.” As of December 31, 2022, the Company had consolidated total assets of $200.7 billion, deposits of $163.5 billion and shareholders’ equity of $25.3 billion. The Company had 22,210 full-time and 598 part-time employees as of December 31, 2022.

At December 31, 2022, M&T had two wholly owned bank subsidiaries: Manufacturers and Traders Trust Company (“M&T Bank”) and Wilmington Trust, National Association (“Wilmington Trust, N.A.”). The banks collectively offer a wide range of retail and commercial banking, trust and wealth management, and investment services to their customers. At December 31, 2022, M&T Bank represented over 99% of consolidated assets of the Company.

On April 1, 2022, M&T completed the acquisition of People’s United Financial, Inc. (“People’s United”). Through its subsidiaries, People’s United provided commercial banking, retail banking and wealth management services to individual, corporate and municipal customers through a network of branches located in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine. Following the acquisition, People’s United Bank, National Association, a national banking association and a wholly owned subsidiary of People’s United, merged with and into M&T Bank, with M&T Bank as the surviving entity. The acquisition of People’s United expanded the Company’s geographical footprint and management expects the Company will benefit from greater geographical diversity and the advantages of scale associated with being a larger company.

The Company from time to time considers acquiring banks, thrift institutions, branch offices of banks or thrift institutions, or other businesses within markets currently served by the Company or in other locations that would complement the Company’s business or its geographic reach. The Company has pursued acquisition opportunities in the past, reviews different opportunities from time to time and intends to continue this practice.

## Subsidiaries

M&T Bank is a banking corporation that is incorporated under the laws of the State of New York. M&T Bank is a member of the Federal Reserve System and the Federal Home Loan Bank System, and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) through its Deposit Insurance Fund (“DIF”) up to applicable limits. M&T acquired all of the issued and outstanding shares of the capital stock of M&T Bank in December 1969. The stock of M&T Bank represents a major asset of M&T. M&T Bank operates under a charter granted by the State of New York in 1892, and the continuity of its banking business is traced to the organization of the Manufacturers and Traders Bank in 1856. The principal executive offices of M&T Bank are located at One M&T Plaza, Buffalo, New York 14203. As of December 31, 2022, M&T Bank had 1,010 domestic banking offices located in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Massachusetts, Maine, Vermont, New Hampshire, Virginia, West Virginia, and the District of Columbia and a full-service commercial banking office in Ontario, Canada. As of December 31, 2022, M&T Bank had consolidated total assets of $200.3 billion, deposits of $166.0 billion and shareholder’s equity of $24.4 billion. As a commercial bank, M&T Bank offers a broad range of financial services to a diverse base of consumers, businesses, professional clients, governmental entities and financial institutions located in its markets. Lending is largely focused on consumers residing in areas where M&T Bank maintains banking offices, and on small and medium-size businesses based in those areas, although loans are originated

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through offices in other states and in Ontario, Canada. In addition, the Company conducts lending activities in various states through other subsidiaries. Trust and other fiduciary services are offered by M&T Bank and through its wholly owned subsidiary, Wilmington Trust Company. M&T Bank and certain of its subsidiaries also offer commercial mortgage loans secured by income producing properties or properties used by borrowers in a trade or business. Additional financial services are provided through other operating subsidiaries of the Company.

Wilmington Trust, N.A., a national banking association and a member of the Federal Reserve System and the FDIC, commenced operations on October 2, 1995. The deposit liabilities of Wilmington Trust, N.A. are insured by the FDIC through the DIF. The main office of Wilmington Trust, N.A. is located at 1100 North Market Street, Wilmington, Delaware 19890. Wilmington Trust, N.A. offers various trust and wealth management services. As of December 31, 2022, Wilmington Trust, N.A. had total assets of $692 million, deposits of $10 million and shareholder's equity of $585 million.

M&T Securities, Inc. ('M&T Securities') is a wholly owned subsidiary of M&T that was incorporated as a New York business corporation in November 1985. M&T Securities is registered as a broker/dealer under the Securities Exchange Act of 1934. It provides institutional brokerage and securities services. As of December 31, 2022, M&T Securities had assets and shareholder's equity of $49 million. M&T Securities recorded $6 million of revenue during 2022. The headquarters of M&T Securities are located at One Light Street, Baltimore, Maryland 21202.

Wilmington Trust Investment Management, LLC ('WTIM') is a wholly owned subsidiary of M&T and was incorporated in December 2001 as a Georgia limited liability company. WTIM is a registered investment advisor under the Investment Advisors Act and provides investment management services to clients, including certain private funds. As of December 31, 2022, WTIM had assets of $7 million and shareholder's equity of $5 million. WTIM recorded revenues of $2 million in 2022. WTIM's headquarters is located at Terminus 27th Floor, 3280 Peachtree Road N.E., Atlanta, Georgia 30305.

Wilmington Trust Company, a wholly owned subsidiary of M&T Bank, was incorporated as a Delaware bank and trust company in March 1901 and amended its charter in July 2011 to become a nondepository trust company. Wilmington Trust Company provides a variety of Delaware based trust, fiduciary and custodial services to its clients. As of December 31, 2022, Wilmington Trust Company had total assets of $1.2 billion and shareholder's equity of $712 million. Revenues of Wilmington Trust Company were $138 million in 2022. The headquarters of Wilmington Trust Company are located at 1100 North Market Street, Wilmington, Delaware 19890.

M&T Realty Capital Corporation ('M&T Realty Capital'), a wholly owned subsidiary of M&T Bank, was incorporated as a Maryland corporation in October 1973. M&T Realty Capital engages in multifamily commercial real estate lending and provides loan servicing to purchasers of the loans it originates. As of December 31, 2022, M&T Realty Capital serviced or sub-serviced $26.0 billion of commercial mortgage loans for non-affiliates and had assets of $932 million and shareholder's equity of $179 million. M&T Realty Capital recorded revenues of $155 million in 2022. The headquarters of M&T Realty Capital are located at One Light Street, Baltimore, Maryland 21202.

Wilmington Trust Investment Advisors, Inc. ('WT Investment Advisors'), a wholly owned subsidiary of M&T Bank, was incorporated as a Maryland corporation on June 30, 1995. WT Investment Advisors, a registered investment advisor under the Investment Advisors Act, serves as an investment advisor to the Wilmington Funds, a family of proprietary mutual funds, and institutional clients. As of December 31, 2022, WT Investment Advisors had assets of $64 million and shareholder's equity of $52 million. WT Investment Advisors recorded revenues of $42 million in 2022. The headquarters of WT Investment Advisors are located at 1100 North Market Street, Wilmington, Delaware 19890.

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Wilmington Funds Management Corporation (“Wilmington Funds Management”) is a wholly owned subsidiary of M&T that was incorporated in September 1981 as a Delaware corporation. Wilmington Funds Management is registered as an investment advisor under the Investment Advisors Act and serves as an investment advisor to the Wilmington Funds. Wilmington Funds Management had assets of $35 million and shareholder’s equity of $34 million as of December 31, 2022. Wilmington Funds Management recorded revenues of $24 million in 2022. The headquarters of Wilmington Funds Management are located at 1100 North Market Street, Wilmington, Delaware 19890.

Following the acquisition of People’s United on April 1, 2022, M&T Bank’s subsidiaries also include People’s United Advisors, Inc. (“PUA”), a Connecticut corporation formed in 2018 that provides investment advisory services and financial management and planning services. As of December 31, 2022 PUA had assets and shareholder’s equity of $11 million and $10 million, respectively. PUA recorded revenues of $23 million during the nine months ended December 31, 2022. Other subsidiaries of M&T Bank obtained in the People’s United acquisition include entities that provide equipment leasing and financing services throughout the United States. Those subsidiaries are: LEAF Commercial Capital, Inc., a Delaware corporation incorporated in 2010, M&T Capital and Leasing Corp. (f/k/a People’s Capital and Leasing Corp.) a Connecticut corporation formed in 1997, and M&T Equipment Finance Corp. (f/k/a People’s United Equipment Finance Corp.), a Texas corporation formed in 1989. The combined assets and shareholders’ equity of the three entities was $5.9 billion and $482 million, respectively, at December 31, 2022. The combined revenues of the equipment leasing and financing services subsidiaries were $280 million in the nine months following their acquisition on April 1, 2022.

The Registrant and its banking subsidiaries have a number of other special-purpose or inactive subsidiaries. These other subsidiaries did not represent, individually and collectively, a significant portion of the Company’s consolidated assets, net income and shareholders’ equity at December 31, 2022.

### Segment Information, Principal Products/Services and Foreign Operations

Information about the Registrant’s business segments is included in note 23 of Notes to Financial Statements filed herewith in Part II, Item 8, “Financial Statements and Supplementary Data” and is further discussed in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” The Registrant’s reportable segments have been determined based upon its internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking. The Company’s international activities are discussed in note 18 of Notes to Financial Statements filed herewith in Part II, Item 8, “Financial Statements and Supplementary Data.”

The only activities that, as a class, contributed 10% or more of the sum of consolidated interest income and other income in any of the last three years were interest on loans and, in 2021, trust income. The amount of income from such sources during those years is recorded in various business segments and is set forth in the Company’s Consolidated Statement of Income and Notes to Financial Statements filed herewith in Part II, Item 8, “Financial Statements and Supplementary Data.”

### Supervision and Regulation of the Company

M&T and its subsidiaries are subject to the comprehensive regulatory framework applicable to bank and financial holding companies and their subsidiaries. Regulation of financial institutions such as M&T and its subsidiaries is intended primarily for the protection of depositors, the FDIC’s DIF and

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the banking and financial system as a whole, and generally is not intended for the protection of shareholders, investors or creditors other than insured depositors.

Proposals to change the applicable regulatory framework may be introduced in the U.S. Congress and state legislatures, as well as by regulatory agencies. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system. Such legislation could change banking statutes and the operating environment of the Company in substantial and unpredictable ways. If enacted, such legislation could increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive balance among banks, savings associations, credit unions, and other financial institutions. A change in statutes, regulations or regulatory policies applicable to M&T or any of its subsidiaries could have a material effect on the business, financial condition or results of operations of the Company.

Described hereafter are material elements of the significant federal and state laws and regulations applicable to M&T and its subsidiaries.

## Overview

M&T is registered with the Board of Governors of the Federal Reserve System (“Federal Reserve”) as a financial holding company and BHC under the BHCA. As such, M&T and its subsidiaries are subject to the supervision, examination, reporting, capital and other requirements of the BHCA and the regulations of the Federal Reserve. In addition, M&T’s banking subsidiaries are subject to regulation, supervision and examination by, as applicable, the New York State Department of Financial Services (“NYSDFS”), the Office of the Comptroller of the Currency (“OCC”), the FDIC and the Federal Reserve, and their consumer financial products and services are regulated by the Consumer Financial Protection Bureau (“CFPB”). Further, financial services entities such as M&T’s investment advisor and broker-dealer subsidiaries are subject to regulation by the Securities and Exchange Commission (“SEC”), the Financial Industry Regulatory Authority (“FINRA”), and the Securities Investor Protection Corporation (“SIPC”), among others. Other non-bank affiliates and activities, particularly insurance brokerage and agency activities, are subject to other federal and state laws and regulations as well as licensing and regulation by state insurance and bank regulatory agencies. Although the scope of regulation and the form of supervision may vary from state to state, insurance laws generally grant broad discretion to regulatory authorities in adopting regulations and supervising regulated activities. This supervision generally includes the licensing of insurance brokers and agents and the regulation of the handling of customer funds held in a fiduciary capacity as well as regulations requiring, among other things, maintenance of capital, record keeping, and reporting.

M&T Bank is a New York chartered bank and a member of the Federal Reserve. As a result, it is subject to extensive regulation, examination and oversight by the NYSDFS and the Federal Reserve Bank (“FRB”) of New York. New York laws and regulations govern many aspects of M&T Bank’s operations, including branching, dividends, subsidiary activities, fiduciary activities, lending, and deposit taking. M&T Bank is also subject to Federal Reserve regulations and guidance, including with respect to capital levels. Its deposits are insured by the FDIC, subject to certain limitations, which also exercises regulatory oversight over certain aspects of M&T Bank’s operations.

Wilmington Trust, N.A. is a national bank with operations that include fiduciary and related activities with limited lending and deposit business. It is subject to extensive regulation, examination and oversight by the OCC which governs many aspects of its operations, including fiduciary activities, capital levels, office locations, dividends and subsidiary activities. Its deposits are insured by the FDIC, subject to certain limitations, which also exercises regulatory oversight over certain aspects of the operations of Wilmington Trust, N.A.

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Certain other subsidiaries are subject to regulation by other federal and state regulators as well. For example, M&T Securities is regulated by the SEC, FINRA, SIPC, and state securities regulators, and WT Investment Advisors and PUA are also subject to SEC regulation.

### **Permissible Activities under the BHC Act**

In general, the BHCA limits the business of a BHC to banking, managing or controlling banks, and other activities that the Federal Reserve has determined to be so closely related to banking as to be a proper incident thereto. In addition, bank holding companies are obligated by a Federal Reserve policy to serve as a managerial and financial source of strength to their subsidiary depository institutions, including committing resources to support such subsidiaries. This support may be required at times when M&T may not be inclined or able to provide it. In addition, any capital loans by a BHC to a subsidiary bank are subordinate in right of payment to deposits and to certain other indebtedness of such subsidiary bank. In the event of a BHC's bankruptcy, any commitment by the BHC to a federal bank regulatory agency to maintain the capital of a subsidiary bank will be assumed by the bankruptcy trustee and entitled to a priority of payment.

Bank holding companies that qualify and elect to be financial holding companies may engage in any activity, or acquire and retain the shares of a company engaged in any activity, that is either (i) financial in nature or incidental to such financial activity (as determined by the Federal Reserve, by regulation or order, in consultation with the Secretary of the Treasury) or (ii) complementary to a financial activity and does not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally (as solely determined by the Federal Reserve). Activities that are financial in nature include securities underwriting and dealing, insurance underwriting and merchant banking.

M&T elected to become a financial holding company in March 2011. To maintain financial holding company status, a financial holding company and all of its depository institution subsidiaries must be 'well capitalized' and 'well managed.' The failure to meet such requirements could result in material restrictions on the activities of M&T and may also adversely affect M&T's ability to enter into certain transactions, including acquisitions, or obtain necessary approvals in connection with those transactions, as well as loss of financial holding company status. Additionally, if each of the Company's depository institution subsidiaries has not received at least a 'satisfactory' rating on its most recent examination under the Community Reinvestment Act of 1977 (the 'CRA'), the Company would not be able to commence any new financial activities or acquire a company that engages in such activities, although it would still be allowed to engage in activities closely related to banking and make investments in the ordinary course of conducting banking activities. For a further discussion of the CRA, see the section captioned 'Community Reinvestment Act' included herein.

### **Enhanced Prudential Standards**

Under Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ('Dodd-Frank Act'), as amended by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 ('EGRRCPA'), U.S. bank holding companies with total consolidated assets of $100 billion or more, including M&T, are subject to enhanced prudential standards. The enhanced prudential standards include risk-based capital and leverage requirements, liquidity standards, risk management and risk committee requirements, stress test requirements and a debt-to-equity limit for companies that the Financial Stability Oversight Council has determined would pose a grave threat to systemic financial stability were they to fail such limits. 'Tailoring Rules' adopted by the Federal Reserve and other federal bank regulators in 2019 assign each U.S. BHC with $100 billion or more in total consolidated assets, as well as its bank subsidiaries, to one of four categories based on its size and five other risk-based indicators: (i) cross-jurisdictional activity, (ii) weighted short-term wholesale funding, (iii) nonbank assets, (iv) off-balance sheet exposure, and (v) status as a U.S. global systemically important

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BHC (“G-SIB”). Under the Tailoring Rules, M&T and its depository institution subsidiaries are subject to Category IV standards, which apply to banking organizations with at least $100 billion in total consolidated assets that do not meet any of the thresholds specified for Categories I through III. The threshold for Category III is $250 billion or more in total consolidated assets, or $100 billion or more in total consolidated assets and at least $75 billion in weighted short-term wholesale funding, nonbank assets or off-balance sheet exposures.

Under the Tailoring Rules, Category IV firms, among other things, (i) are not subject to any Liquidity Coverage Ratio (“LCR”) or Net Stable Funding Ratio (“NSFR”) (or, in certain cases, are subject to reduced requirements), (ii) remain eligible to opt-out of the requirement to recognize most elements of Accumulated Other Comprehensive Income (“AOCI”) in regulatory capital, (iii) are no longer subject to company-run stress testing requirements, (iv) are subject to supervisory stress testing on at least a biennial basis rather than an annual basis, (v) are subject to requirements to develop and maintain a capital plan on an annual basis and (vi) are subject to certain liquidity risk management and risk committee requirements. The Federal Reserve may impose more stringent requirements (e.g. frequency of supervisory stress tests or capital plan submissions) based on a company’s financial condition, size, complexity, risk profile, scope of operations or activities, or risks to the U.S. economy. Category IV firms continue not to be subject to (i) advanced approaches capital requirements, (ii) the supplementary leverage ratio (“SLR”) and (iii) the countercyclical capital buffer (“CCyB”). Other elements of the Tailoring Rules are discussed in further detail throughout this section. Compared with Category IV firms, Category III firms are subject to the LCR and NSFR, company-run stress testing requirements, annual (instead of biennial) supervisory stress tests, the SLR and the CCyB.

### Capital Requirements

M&T and its subsidiary banks are required to comply with applicable capital adequacy standards established by the federal banking agencies (the “Capital Rules”), which are based on the Basel Committee’s December 2010 final capital framework for strengthening international capital standards, referred to as “Basel III”. The Capital Rules include both risk-based requirements, which compare three measures of capital to risk-weighted assets (“RWAs”), as well as leverage requirements, which, in the case of Category IV bank holding companies such as M&T, consist of the Tier 1 leverage ratio described below. Pursuant to the Capital Rules, the minimum capital ratios are as follows:

- 4.5% Common Equity Tier 1 Capital (“CET1”) to RWAs;
- 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to RWAs;
- 8.0% Total capital (that is, Tier 1 plus Tier 2 capital) to RWAs; and
- 4.0% Tier 1 capital to average consolidated assets (the “leverage ratio”).

In calculating risk-based capital ratios, M&T must assign risk weights to the Company’s assets and off-balance sheet items. M&T has an ongoing process to review data elements associated with these exposures that from time to time may affect how specific exposures are classified and could lead to increases or decreases of the regulatory risk weights assigned to such exposures.

The Capital Rules also require firms to maintain a “buffer,” consisting solely of CET1 capital, in addition to the minimum risk-based requirements. Failure to satisfy the buffer requirement in full results in graduated constraints on capital distributions and discretionary executive compensation. The severity of the constraints depends on the amount of the shortfall and the firm’s “eligible retained income,” defined as the greater of (i) net income for the four preceding quarters net of distributions and associated tax effects not reflected in net income and (ii) the average of net income over the preceding four quarters.

As a Category IV BHC, M&T’s buffer requirement, referred to as the “Stress Capital Buffer,” is determined through the Federal Reserve’s supervisory stress tests, discussed below. For M&T’s bank

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subsidiaries, the buffer requirement consists of the static capital conservation buffer equal to 2.5% of RWAs.

CET1 consists of common stock instruments that meet the eligibility criteria in the Capital Rules, including common stock and related surplus, net of treasury stock, retained earnings, certain minority interests and, for certain firms, AOCI. As permitted under the Capital Rules, M&T made a one-time permanent election to neutralize certain AOCI components, with the result that those components are not recognized in M&T's CET1.

The Capital Rules provide for a number of deductions from and adjustments to CET1. As a 'non-advanced approaches' firm under the Capital Rules, M&T is subject to rules that provide for simplified capital requirements relating to the threshold deductions for mortgage servicing assets, deferred tax assets arising from temporary differences that a banking organization could not realize through net operating loss carry backs, and investments in the capital of unconsolidated financial institutions, as well as the inclusion of minority interests in regulatory capital. M&T's and its subsidiary banks' regulatory capital ratios are presented in note 24 of Notes to Financial Statements filed herewith in Part II, Item 8, 'Financial Statements and Supplementary Data.'

In December 2017, the Basel Committee published standards that it described as the finalization of the Basel III post-crisis regulatory reforms. Among other things, these standards revise the Basel Committee's standardized approach for credit risk (including by recalibrating risk weights and introducing new capital requirements for certain 'unconditionally cancellable commitments,' such as unused credit card lines of credit) and provide a new standardized approach for operational risk capital. The federal bank regulators have not yet proposed rules implementing these standards. Under the current U.S. capital rules, operational risk capital requirements and a capital floor apply only to advanced approaches institutions, and not to the Company. The impact of these standards will depend on the manner in which they are implemented by the federal banking regulators.

### **Stress Testing and Stress Capital Buffer**

As part of the enhanced prudential requirements applicable to systemically important financial institutions, the Federal Reserve conducts periodic analyses of bank holding companies with at least $100 billion in total consolidated assets using baseline and severely adverse economic and financial scenarios generated by the Federal Reserve. For Category IV firms, such as M&T, these supervisory stress tests occur on a biennial basis, in even-numbered years. The Federal Reserve may also use additional components in the severely adverse scenario or additional or more complex scenarios designed to capture salient risks to specific business groups. A summary of results of the Federal Reserve's analysis under the severely adverse stress scenario is publicly disclosed. Under the Tailoring Rules, Category IV firms, including M&T, are no longer subject to company-run stress testing requirements.

Bank holding companies with total consolidated assets of $100 billion or more, including Category IV bank holding companies such as M&T, must annually submit capital plans as part of the Federal Reserve's process. The comprehensive capital plans include a view of capital adequacy under various scenarios - including a BHC-defined baseline scenario, a baseline scenario provided by the Federal Reserve, at least one BHC-defined stress scenario, and any severely adverse scenario provided by the Federal Reserve. The process is intended to help ensure that these bank holding companies have robust, forward-looking capital planning processes that account for each company's unique risks and that permit continued operations during times of economic and financial stress. Each of the bank holding companies participating in the process is also required to collect and report certain related data to the Federal Reserve on a regular basis. The Stress Capital Buffer is based on a BHC's stressed losses in the supervisory stress test, plus four quarters of planned common stock dividends, subject to a floor of 2.5% of RWAs. In June 2022, the Federal Reserve released the results of its most recent supervisory stress tests. Based on those results, on October 1, 2022, M&T's stress capital buffer of 4.7% became

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effective. Accordingly, it currently is subject to a CET1 capital requirement of 9.2% (a sum of the Stress Capital Buffer and the minimum CET1 capital ratio).

In January 2021, the Federal Reserve issued a final rule to align its process with the categories set forth in the Tailoring Rules. Under the final rule, for Category IV firms, the portion of the Stress Capital Buffer based on the Federal Reserve's supervisory stress tests will be calculated biennially, in even-numbered years. During a year in which a Category IV firm does not undergo a supervisory stress test, the firm will receive an updated Stress Capital Buffer that reflects the firm's updated planned common stock dividends. A Category IV firm is also able to elect to participate in the supervisory stress test in a year in which the firm would not normally be subject to the supervisory stress test and consequently receive an updated Stress Capital Buffer. The Federal Reserve may impose more stringent requirements (e.g., frequency of supervisory stress tests or capital plan submissions) based on various factors. In connection with the acquisition of People's United, M&T will be required to participate in the 2023 supervisory stress test and receive an updated Stress Capital Buffer.

The Federal Reserve also incorporates an assessment of the qualitative aspects of the firm's capital planning process into regular, ongoing supervisory activities and through targeted, horizontal assessments of particular aspects of capital planning. M&T's annual capital plan is currently due in April each year. The Federal Reserve publishes the results of its supervisory stress tests by June 30 of each year.

A BHC's planned capital distributions in its annual capital plan submissions must be consistent with any effective distribution limitations that would apply under the firm's own baseline projections, including its Stress Capital Buffer.

## Distributions

M&T is a legal entity separate and distinct from its banking and other subsidiaries. Historically, the majority of M&T's revenue has been from dividends paid to M&T by its subsidiary banks. M&T Bank and Wilmington Trust, N.A. are subject to laws and regulations imposing restrictions on the amount of dividends they may declare and pay. Future dividend payments to M&T by its subsidiary banks will be dependent on a number of factors, including the earnings and financial condition of each such bank, and are subject to the limitations referred to in note 24 of Notes to Financial Statements filed herewith in Part II, Item 8, 'Financial Statements and Supplementary Data,' and to other statutory powers of bank regulatory agencies.

An insured depository institution is prohibited from making any capital distribution to its owner, including any dividend, if, after making such distribution, the depository institution fails to meet the required minimum level for any relevant capital measure, including the risk-based capital adequacy and leverage standards discussed herein. Dividend payments by M&T to its shareholders and common stock repurchases by M&T are subject to the oversight of the Federal Reserve. M&T's ability to make capital distributions would likely be impacted in the event that M&T fails to maintain its Stress Capital Buffer above its minimum CET1 risk-based, Tier-1 risk-based and total risk-based capital requirements.

In addition, the Federal Reserve's capital plan rule also provides that a BHC must receive prior approval for any dividend, stock repurchase, or other capital distribution, other than a capital distribution on a newly issued capital instrument, if the BHC is required to resubmit its capital plan. Among other circumstances, a firm may be required to resubmit its capital plan in connection with certain acquisitions or dispositions.

## Liquidity

Under the Tailoring Rules, as a Category IV firm, the Company is not subject to the Federal Reserve and other federal banking regulators rules that implement a U.S. version of the Basel Committee's LCR requirement, which is intended to ensure that banks hold sufficient amounts of so-called 'high

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quality liquid assets” (“HQLA”) to cover the anticipated net cash outflows during a hypothetical acute 30-day stress scenario or the NSFR, which is designed to promote more medium- and long-term funding of the assets and activities of banks over a one-year time horizon. The Federal Reserve’s enhanced prudential standards, however, require the Company, as a BHC with $100 billion or more in total consolidated assets, to comply with enhanced liquidity and overall risk management standards, which include maintaining a level of highly liquid assets based on projected funding needs for 30 days, and increased involvement by boards of directors in liquidity and overall risk management. Under the Tailoring Rules, the liquidity risk management and reporting requirements are less stringent for Category IV bank holding companies as compared with bank holding companies in a different Category.

### **Cross Guaranty Provision**

The cross guaranty provisions in the Federal Deposit Insurance Act (“FDIA”) require each insured depository institution owned by the same BHC to be financially responsible for the failure or resolution costs of any affiliated insured institution. Generally, the amount of the cross guaranty liability is equal to the estimated loss to the DIF for the resolution of the affiliated institution(s) in default. The FDIC’s claim under the cross guaranty provision is superior to claims of shareholders of the insured depository institution or its BHC and to most claims arising out of obligations or liabilities owed to affiliates of the institution, but is subordinate to claims of depositors, secured creditors and holders of subordinated debt (other than affiliates) of the commonly controlled insured depository institution. The FDIC may decline to enforce the cross guaranty provision if it determines that a waiver is in the best interest of the DIF.

### **Volcker Rule**

The Volcker Rule limits proprietary trading and investing in and sponsoring certain hedge funds and private equity funds (defined as “covered funds” in the Volcker Rule). The Company does not engage in any significant amount of proprietary trading as defined in the Volcker Rule and implemented the required procedures for those areas in which trading does occur. In addition, the Company does not engage in any significant covered fund activities that are impacted by the Volcker Rule.

### **Safety and Soundness Standards**

Guidelines adopted by the federal bank regulatory agencies pursuant to the FDIA establish general standards relating to internal controls, information systems, internal audit systems, loan documentation, credit underwriting, interest rate exposure, asset growth, compensation, fees and benefits. In general, these guidelines require, among other things, appropriate systems and practices to identify and manage the risk and exposures specified in the guidelines. Additionally, the agencies adopted regulations that authorize, but do not require, an agency to order an institution that has been given notice by an agency that it is not satisfying any of such safety and soundness standards to submit a compliance plan. If, after being so notified, an institution fails to submit an acceptable compliance plan or fails in any material respect to implement an acceptable compliance plan, the agency must issue an order directing action to correct the deficiency and may issue an order directing other actions of the types to which an undercapitalized institution is subject. If an institution fails to comply with such an order, the agency may seek to enforce such order in judicial proceedings and to impose civil money penalties.

### **Limits on Undercapitalized Depository Institutions**

The FDIA establishes a system of regulatory remedies to resolve the problems of undercapitalized institutions, referred to as the prompt corrective action. The federal banking regulators have established five capital categories (“well-capitalized,” “adequately capitalized,” “undercapitalized,” “significantly

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undercapitalized” and “critically undercapitalized”) and must take certain mandatory supervisory actions, and are authorized to take other discretionary actions, with respect to institutions which are undercapitalized, significantly undercapitalized or critically undercapitalized. The severity of these mandatory and discretionary supervisory actions depends upon the capital category in which the institution is placed. The federal banking regulators have specified by regulation the relevant capital levels for each category. The FDIA’s prompt corrective action provisions only apply to depository institutions and not to bank holding companies. The Federal Reserve’s regulations applicable to bank holding companies separately define “well capitalized.” A financial holding company that is not well-capitalized and well-managed (or whose bank subsidiaries are not well capitalized and well managed) under applicable prompt corrective action standards may be restricted in certain of its activities and ultimately may lose financial holding company status. Under existing rules, a depository institution is deemed to be “well capitalized” if it has (i) a CET1 ratio of at least 6.5%, (ii) a Tier 1 capital ratio of at least 8%, (iii) a Total capital ratio of at least 10%, and (iv) a Tier 1 leverage ratio of at least 5%.

An institution that is categorized as undercapitalized, significantly undercapitalized or critically undercapitalized is required to submit an acceptable capital restoration plan to its appropriate federal banking regulator. Under the FDIA, in order for the capital restoration plan to be accepted by the appropriate federal banking agency, a BHC must guarantee that a subsidiary depository institution will comply with its capital restoration plan, subject to certain limitations. The BHC must also provide appropriate assurances of performance. An undercapitalized institution is also generally prohibited from increasing its average total assets, accepting brokered deposits or offering interest rates on any deposits significantly higher than prevailing market rates, making acquisitions, establishing any branches or engaging in any new line of business, except in accordance with an accepted capital restoration plan or with the approval of the FDIC. Institutions that are significantly undercapitalized or undercapitalized and either fail to submit an acceptable capital restoration plan or fail to implement an approved capital restoration plan may be subject to a number of requirements and restrictions, including orders to sell sufficient voting stock to become adequately capitalized, requirements to reduce total assets and cessation of receipt of deposits from correspondent banks. Critically undercapitalized depository institutions failing to submit or implement an acceptable capital restoration plan are subject to appointment of a receiver or conservator.

### Transactions with Affiliates

There are various legal restrictions on the extent to which M&T and its non-bank subsidiaries or affiliates (including M&T Realty Capital, M&T Securities, WT Investment Advisors and PUA) may borrow or otherwise obtain funding from M&T Bank and Wilmington Trust, N.A. In general, Sections 23A and 23B of the Federal Reserve Act and Federal Reserve Regulation W require that any “covered transaction” by M&T Bank and Wilmington Trust, N.A. (or any of their respective subsidiaries) with an affiliate must in certain cases be secured by designated amounts of specified collateral and must be limited as follows: (i) in the case of any single such affiliate, the aggregate amount of covered transactions of the insured depository institution and its subsidiaries may not exceed 10% of the capital stock and surplus of such insured depository institution, and (ii) in the case of all affiliates, the aggregate amount of covered transactions of an insured depository institution and its subsidiaries may not exceed 20% of the capital stock and surplus of such insured depository institution. “Covered transactions” are defined by statute to include, among other things, a loan or extension of credit, as well as a purchase of securities issued by an affiliate, a purchase of assets (unless otherwise exempted by the Federal Reserve) from the affiliate, certain derivative transactions that create a credit exposure to an affiliate, the acceptance of securities issued by the affiliate as collateral for a loan, and the issuance of a guarantee, acceptance or letter of credit on behalf of an affiliate. All covered transactions, including certain additional transactions (such as transactions with a third party in which an affiliate has a financial interest), must be conducted on terms and under circumstances including credit standards, (i)

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that are substantially the same, or at least as favorable to such bank or its subsidiary, as those prevailing at the time for comparable transactions with or involving other nonaffiliated companies, or in the absence of comparable transactions, (ii) that in good faith would be offered to, or would apply to, nonaffiliated companies.

### **FDIC Insurance Assessments**

M&T Bank and Wilmington Trust, N.A. deposits are insured by the DIF of the FDIC up to the limits set forth under applicable law. The FDIC imposes a risk-based premium assessment system that determines assessment rates for financial institutions. Deposit insurance assessments are based on average total assets minus average tangible equity. For larger institutions, such as M&T Bank, the FDIC uses a performance score and a loss-severity score that are used to calculate an initial assessment rate. In calculating these scores, the FDIC uses a bank's capital level and supervisory ratings and certain financial measures to assess an institution's ability to withstand asset-related stress and funding-related stress. The FDIC has the ability to make discretionary adjustments to the total score based upon significant risk factors that are not adequately captured in the calculations. Under the current system, premiums are assessed quarterly.

Under the FDIA, insurance of deposits may be terminated by the FDIC upon a finding that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

On October 18, 2022, the FDIC finalized a rule that would increase initial base deposit insurance assessment rates by 2 basis points, beginning with the first quarterly assessment period of 2023. The FDIC, as required under the FDIA, established a plan in September 2020 to restore the DIF reserve ratio to meet or exceed the statutory minimum of 1.35 percent within eight years. The increased assessment is intended to improve the likelihood that the DIF reserve ratio would reach the required minimum by the statutory deadline of September 30, 2028.

### **Acquisitions**

Federal and state laws impose notice and approval requirements for mergers and acquisitions involving depository institutions or bank holding companies. For example, the BHCA requires every BHC to obtain the prior approval of the Federal Reserve before: (i) it may acquire direct or indirect ownership or control of any voting shares of any bank or savings institution, if after such acquisition, the BHC will directly or indirectly own or control 5% or more of the voting shares of the institution; (ii) it or any of its subsidiaries, other than a bank, may acquire all or substantially all of the assets of any bank or savings institution; or (iii) it may merge or consolidate with any other BHC. In addition, financial holding companies are required to obtain prior approval from the Federal Reserve before acquiring certain nonbank financial companies with assets exceeding $10 billion.

The BHCA further provides that the Federal Reserve may not approve any transaction that would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in any section of the United States, or the effect of which may be substantially to lessen competition or to tend to create a monopoly in any section of the country, or that in any other manner would be in restraint of trade, unless the anticompetitive effects of the proposed transaction are clearly outweighed by the public interest in meeting the convenience and needs of the community to be served. The Federal Reserve is also required to consider the financial and managerial resources and future prospects of the bank holding companies and banks concerned and the convenience and needs of the community to be served. Consideration of financial resources generally focuses on capital adequacy and consideration of convenience and needs issues and includes the parties' performance under the CRA and compliance with laws, especially consumer protection laws. When evaluating a transaction, the Federal Reserve must also take into account the institutions'

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effectiveness in combating money laundering and consider the extent to which the transaction would result in greater or more concentrated risks to the stability of the United States banking or financial system.

### **Executive and Incentive Compensation**

Guidelines adopted by several federal banking agencies prohibit excessive compensation as an unsafe and unsound practice and describe compensation as “excessive” when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director or principal stockholder. The Federal Reserve issued comprehensive guidance on incentive compensation policies (the “Incentive Compensation Guidance”) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The Incentive Compensation Guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. These three principles are incorporated into the proposed joint compensation regulations under the Dodd-Frank Act noted below. Any deficiencies in compensation practices that are identified may be incorporated into the organization’s supervisory ratings, which can affect its ability to make acquisitions or perform other actions. The Incentive Compensation Guidance states that enforcement actions may be taken against a banking organization if its incentive compensation arrangements or related risk-management control or governance processes pose a risk to the organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.

The Dodd-Frank Act requires the federal bank regulatory agencies and the SEC to establish joint regulations or guidelines prohibiting incentive-based payment arrangements at specified regulated entities having at least $1 billion in total assets, such as M&T and M&T Bank. The agencies proposed rules to implement this requirement but these proposed rules have not been finalized.

In October 2022, the SEC adopted a final rule directing national securities exchanges and associations, including the New York Stock Exchange, to require policies mandating the recovery or “clawback” of excess incentive-based compensation earned by a current or former executive officer during the three fiscal years preceding a required accounting restatement, including to correct an error that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period. The excess compensation would be based on the amount the executive officer would have received had the incentive-based compensation been determined using the restated financials. The final rule requires the exchanges to propose conforming listing standards by February 26, 2023 and requires the standards to become effective no later than November 28, 2023. Each listed issuer, which includes M&T as a listed issuer on the New York Stock Exchange, would then be required to adopt a clawback policy within 60 days after its exchange’s listing standard has become effective. M&T will work to implement these new requirements as the rule becomes effective.

In addition, the NYSDFS issued guidance emphasizing that its regulated banking institutions, including M&T Bank, must ensure that any incentive compensation arrangements tied to employee performance indicators are subject to effective risk management, oversight and control.

### **Resolution Planning**

Pursuant to the Dodd-Frank Act, as amended by EGRRCPA, certain bank holding companies are required to report periodically to the Federal Reserve and the FDIC a resolution plan for their rapid and orderly resolution in the event of material financial distress or failure. In late 2019, the Federal

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Reserve and FDIC issued modified rules that, among other things, adjusted the review cycles and applicability of the agencies' resolution planning requirements. Under these rules, Category IV firms such as M&T are not required to submit resolution plans.

The FDIC has separately required insured depository institutions ("IDIs") with $50 billion or more in total assets, such as M&T Bank, to submit to the FDIC periodic plans for resolution in the event of the institution's failure. In January 2021, the FDIC lifted its existing moratorium on resolution plans, resuming the requirement for resolution plan submissions for IDIs with $100 billion or more in assets. The FDIC also announced its intention to engage in targeted engagement and capabilities testing related to resolution planning with select firms, for which M&T Bank most recently participated during 2021. In June 2021, the FDIC issued a Statement on Resolution Plans for IDI's, which, among other things, provides general information regarding the content that filers are expected to prepare and extends the submission frequency for specified IDI's to a three-year resolution plan filing cycle. Pursuant to this filing cycle, M&T Bank submitted its most recent resolution plan to the FDIC in November 2022.

### Insolvency of an Insured Depository Institution or a Bank Holding Company

If the FDIC is appointed as conservator or receiver for an insured depository institution such as M&T Bank or Wilmington Trust, N.A., upon its insolvency or in certain other events without limitation, the FDIC has the power:

- to transfer any of the depository institution's assets and liabilities to a new depository institution, including a newly formed "bridge" bank without the approval of the insolvent depository institution's creditors or equity holders;
- to enforce the terms of the depository institution's contracts pursuant to their terms without regard to any provisions triggered by the appointment of the FDIC in that capacity; or
- to repudiate or disaffirm any contract or lease to which the depository institution is a party, the performance of which is determined by the FDIC to be burdensome and the disaffirmance or repudiation of which is determined by the FDIC to promote the orderly administration of the depository institution.

In addition, under federal law, the claims of holders of domestic deposit liabilities and certain claims for administrative expenses against an insured depository institution would be afforded a priority over other general unsecured claims against such an institution, including claims of debt holders of the institution, in the "liquidation or other resolution" of such an institution by any receiver. As a result, whether or not the FDIC ever sought to repudiate any debt obligations of M&T Bank or Wilmington Trust, N.A., the debt holders would be treated differently from, and could receive, if anything, substantially less than, the depositors of the bank.

The Dodd-Frank Act created a new resolution regime (known as "orderly liquidation authority") for systemically important financial companies, including bank holding companies and their affiliates. Under the orderly liquidation authority, the FDIC may be appointed as receiver for the systemically important institution, and its failed subsidiaries, for purposes of liquidating the entity if, among other conditions, it is determined at the time of the institution's failure that it is in default or in danger of default and the failure poses a risk to the stability of the U.S. financial system.

If the FDIC is appointed as receiver under the orderly liquidation authority, then the powers of the receiver, and the rights and obligations of creditors and other parties who have dealt with the institution, would be determined under the Dodd-Frank Act provisions, and not under the insolvency law that would otherwise apply. The powers of the receiver under the orderly liquidation authority were based on the powers of the FDIC as receiver for depository institutions under the FDIA. However, the provisions governing the rights of creditors under the orderly liquidation authority were modified

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in certain respects to reduce disparities with the treatment of creditors' claims under the U.S. Bankruptcy Code as compared with the treatment of those claims under the new authority. Nonetheless, substantial differences in the rights of creditors exist as between these two regimes, including the right of the FDIC to disregard the strict priority of creditor claims in some circumstances, the use of an administrative claims procedure to determine creditors' claims (as opposed to the judicial procedure utilized in bankruptcy proceedings), and the right of the FDIC to transfer claims to a 'bridge' entity.

An orderly liquidation fund will fund such liquidation proceedings through borrowings from the Treasury Department and risk-based assessments made, first, on entities that received more in the resolution than they would have received in liquidation to the extent of such excess, and second, if necessary, on bank holding companies with total consolidated assets of $50 billion or more, such as M&T. If an orderly liquidation is triggered, M&T could face assessments for the orderly liquidation fund.

The FDIC has developed a strategy under the orderly liquidation authority referred to as the 'single point of entry' strategy, under which the FDIC would resolve a failed financial holding company by transferring its assets (including shares of its operating subsidiaries) and, potentially, very limited liabilities to a 'bridge' holding company; utilize the resources of the failed financial holding company to recapitalize the operating subsidiaries; and satisfy the claims of unsecured creditors of the failed financial holding company and other claimants in the receivership by delivering securities of one or more new financial companies that would emerge from the bridge holding company. Under this strategy, management of the failed financial holding company would be replaced and shareholders and creditors of the failed financial holding company would bear the losses resulting from the failure.

### **Depositor Preference**

Under federal law, depositors and certain claims for administrative expenses and employee compensation against an insured depository institution would be afforded a priority over other general unsecured claims against such an institution in the 'liquidation or other resolution' of such an institution by any receiver. If an insured depository institution fails, insured and uninsured depositors, along with the FDIC, will have priority in payment ahead of unsecured, non-deposit creditors, including depositors whose deposits are payable only outside of the United States and the parent BHC, with respect to any extensions of credit they have made to such insured depository institution.

### **Financial Privacy and Cyber Security**

The federal banking regulators have adopted rules that limit the ability of banks and other financial institutions to disclose non-public and personally identifiable information about consumers to non-affiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a non-affiliated third party. These regulations affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors. In addition, consumers may also prevent disclosure of certain information among affiliated companies that is assembled or used to determine eligibility for a product or service, such as that shown on consumer credit reports and asset and income information from applications. Consumers also have the option to direct banks and other financial institutions not to share information about transactions and experiences with affiliated companies for the purpose of marketing products or services. Federal law makes it a criminal offense, except in limited circumstances, to obtain or attempt to obtain customer information of a financial nature by fraudulent or deceptive means.

In November 2021, the federal banking agencies issued a final rule requiring banking organizations to notify their primary regulator as soon as possible and within 36 hours of determining that a 'notification incident' has occurred. A notification incident is a 'computer-security incident' that has materially disrupted or degraded, or is reasonably likely to materially disrupt or degrade, the

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banking organization’s ability to deliver services to a material portion of its customer base, jeopardize the viability of key operations of the banking organization, or impact the stability of the financial sector. The final rule also requires specific and immediate notifications by bank service providers that become aware of similar incidents. The rule was effective April 1, 2022, with compliance required by May 1, 2022.

Financial institutions regulated by the NYSDFS, including M&T Bank, are also subject to NYSDFS regulations on cybersecurity matters, including, among other things, requirements to (i) establish and maintain a cyber security program designed to ensure the confidentiality, integrity and availability of their information systems, (ii) implement and maintain a written cyber security policy setting forth policies and procedures for the protection of their information systems and nonpublic information and (iii) designate a Chief Information Security Officer.

On November 9, 2022, the NYSDFS released proposed amendments to its cybersecurity regulations that represent a significant update to the regulation of cybersecurity practices. The amendments generally fall within the following five categories: (i) increased mandatory controls associated with common attack vectors, (ii) enhanced requirements for privileged accounts, (iii) enhanced notification obligations, (iv) expansion of cyber governance practices and (v) additional cybersecurity requirements for larger companies. Most amendments as proposed would become effective within 180 days of adoption.

In March 2022, the SEC proposed new rules that would require registrants, such as M&T, to (i) report material cybersecurity incidents on Form 8-K, (ii) include updated disclosure in Forms 10-K and 10-Q of previously disclosed cybersecurity incidents and disclose previously undisclosed individually immaterial incidents when a determination is made that they have become material on an aggregated basis, (iii) disclose cybersecurity policies and procedures and governance practices, including at the board and management levels in Form 10-K and (iv) disclose the board of directors’ cybersecurity expertise.

Many states and regulators have been increasingly active in implementing privacy and cybersecurity standards and regulations, including implementing or modifying their data breach notification and data privacy requirements. One example of recent state legislation is the California Consumer Privacy Act (“CCPA”), which became effective on January 1, 2020 and applies to for-profit businesses that conduct business in California and meet certain revenue or data collection thresholds. November 2020 amendments expanding the scope of and requirements under the CCPA generally became effective on January 1, 2023.

### Consumer Protection Laws and the Consumer Financial Protection Bureau Supervision

In connection with their respective lending and leasing activities, M&T Bank, Wilmington Trust, N.A. and certain of their subsidiaries, are each subject to a number of federal and state laws designed to protect consumers and promote lending to various sectors of the economy. Such laws include: the Electronic Signatures in Global and National Commerce Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, the Gramm-Leach Bliley Act, the Truth in Lending Act, the Home Mortgage Disclosure Act, the Electronic Fund Transfer Act, the Real Estate Settlement Procedures Act, the Military Lending Act, the Servicemembers Civil Relief Act, and various state law counterparts. Furthermore, the CFPB has issued integrated disclosure requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act that relate to the provision of disclosures to consumers. There are also consumer protection laws governing deposit taking activities (e.g. the Expedited Funds Availability Act and the Truth in Savings Act), as well as securities and insurance laws governing certain aspects of the Company’s consolidated operations.

The CFPB has broad powers to supervise and enforce most federal consumer protection laws. The CFPB has broad rule-making authority for a wide range of consumer protection laws that apply to

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all banks and savings institutions, including the authority to prohibit “unfair, deceptive or abusive” acts and practices which violate the Consumer Financial Protection Act. The CFPB has examination and enforcement authority over all banks and savings institutions with more than $10 billion in assets, including M&T Bank.

In addition, federal law permits states to adopt consumer protection laws and standards that are more stringent than those adopted at the federal level and, in certain circumstances, permits state attorneys general to enforce compliance with both the state and federal laws and regulations.

### **Community Reinvestment Act**

The CRA is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations. CRA examinations are conducted by the federal agencies that are responsible for supervising the relevant depository institutions: the Federal Reserve, the FDIC and the OCC. For purposes of the CRA, M&T is regulated by the Federal Reserve. A financial institution’s performance in helping to meet the credit needs of its community is evaluated in the context of information about the institution (capacity, constraints and business strategies), its community (demographic and economic data, lending, investment, and service opportunities), and its competitors and peers. Upon completion of a CRA examination, an overall CRA Rating is assigned using a four-tiered rating system. These ratings are: “Outstanding,” “Satisfactory,” “Needs to Improve” and “Substantial Noncompliance.” The CRA evaluation is used in evaluating applications for future approval of bank activities including mergers, acquisitions, charters, branch openings and deposit facilities. An unsatisfactory CRA evaluation could result in the delay or denial of acquisition or merger applications, among other activities. M&T Bank has a current rating of “Outstanding.” M&T Bank is also subject to New York State CRA examination and is assessed using a 1 to 4 scoring system. M&T Bank currently has a rating of 1, or “Outstanding” from the NYSDFS. Wilmington Trust, N.A. has been designated a special purpose trust company since March 3, 2016, and is therefore exempt from the requirements of the CRA. In May 2022, the OCC, the Federal Reserve, and the FDIC jointly issued a proposed rule to modernize Federal banking regulators’ regulations implementing the CRA. The proposed rule would adjust CRA evaluations based on bank size and type, with many of the proposed changes applying only to banks with over $2 billion in assets and several applying only to banks with over $10 billion in assets, such as M&T. The effects on the Company of any potential change to the CRA rules will depend on the final form of any Federal Reserve rulemaking.

### **Bank Secrecy Act Regulation and Anti-Money Laundering Obligations**

Federal laws and regulations impose obligations on U.S. financial institutions, including banks and broker/dealer subsidiaries, to implement and maintain appropriate policies, procedures and controls which are reasonably designed to prevent, detect and report instances of money laundering and the financing of terrorism and to verify the identity of their customers. These provisions also require the federal financial institution regulatory agencies to consider the effectiveness of a financial institution’s anti-money laundering activities when reviewing bank mergers and BHC acquisitions. Failure of a financial institution to maintain and implement adequate programs to combat money laundering and terrorist financing could have serious legal and reputational consequences for the institution, including the denial by federal regulators of proposed merger, acquisition, restructuring or other expansionary activity.

The Financial Crimes Enforcement Network (“FinCEN”), which drafts regulations implementing the USA PATRIOT Act and other anti-money laundering and Bank Secrecy Act legislation, has adopted rules that require financial institutions to, among other things, obtain beneficial ownership information with respect to legal entities with which such institutions conduct business, subject to certain exclusions and exemptions. Bank regulators are focusing their examinations on anti-money

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laundering compliance, and M&T continues to monitor and augment, where necessary, its Bank Secrecy Act and Anti-Money Laundering (“BSA/AML”) Compliance Program.

The Anti-Money Laundering Act of 2020 (“AMLA”), which amends the BSA, was enacted in January 2021. The AMLA is intended to comprehensively reform and modernize U.S. bank secrecy and anti-money laundering laws. Among other things, it codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the U.S. Department of the Treasury to promulgate priorities for anti-money laundering and countering the financing of terrorism policy; requires the development of standards for testing technology and internal processes for BSA compliance; expands enforcement and investigation-related authority, including increasing available sanctions for certain BSA violations; and expands BSA whistleblower incentives and protections. In June 2021, FinCEN issued the priorities for anti-money laundering and countering the financing of terrorism policy required under AMLA. The priorities include: corruption, cybercrime, terrorist financing, fraud, transnational crime, drug trafficking, human trafficking and proliferation financing. M&T reviews and monitors its anti-money laundering compliance program to ensure it complies with the changes reflected in the AMLA and the regulations that implement it.

### **Office of Foreign Assets Control Regulation**

The United States has imposed economic sanctions that prohibit transactions with designated foreign countries, nationals and others. These are typically known as the “OFAC” rules based on their administration by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”). The OFAC-administered sanctions targeting countries take many different forms. Generally, however, they contain one or more of the following elements: (i) restrictions on trade with or investment in a sanctioned country, including prohibitions against direct or indirect imports from and exports to a sanctioned country and prohibitions on “U.S. persons” engaging in financial transactions relating to making investments in, or providing investment-related advice or assistance to, a sanctioned country; and (ii) a blocking of assets in which the government or specially designated nationals of the sanctioned country have an interest, by prohibiting transfers of property subject to U.S. jurisdiction (including property in the possession or control of U.S. persons). Blocked assets (e.g. property and bank deposits) cannot be paid out, withdrawn, set off or transferred in any manner without a license from OFAC. Failure to comply with these sanctions could have serious legal and reputational consequences, including denial by federal regulators of proposed merger, acquisition, restructuring, or other expansionary activity. The OFAC rules are included as part of M&T’s BSA/AML Compliance Program, which M&T continues to monitor and augment, where necessary.

### **Regulation of Insurers and Insurance Brokers**

The Company’s operations in the areas of insurance agency/brokerage and reinsurance of credit life insurance are subject to regulation and supervision by various state insurance regulatory authorities. Although the scope of regulation and form of supervision may vary from state to state, insurance laws generally grant broad discretion to regulatory authorities in adopting regulations and supervising regulated activities. This supervision generally includes the licensing of insurance brokers and agents and the regulation of the handling of customer funds held in a fiduciary capacity. Certain of M&T’s subsidiaries that are engaged in insurance-related activities are subject to extensive regulatory supervision and to insurance laws and regulations requiring, among other things, maintenance of capital, record keeping, reporting and examinations.

### **Federal Reserve Policies**

The earnings of the Company are significantly affected by the monetary and fiscal policies of governmental authorities, including the Federal Reserve. Among the instruments of monetary policy used by the Federal Reserve are open-market operations in U.S. Government securities and federal

17

funds, changes in the discount rate on member bank borrowings and changes in reserve requirements against member bank deposits. These instruments of monetary policy are used in varying combinations to influence the overall level of bank loans, investments and deposits, and the interest rates charged on loans and paid for deposits. The Federal Reserve frequently uses these instruments of monetary policy, especially its open-market operations and the discount rate, to influence the level of interest rates and to affect the strength of the economy, the level of inflation or the price of the dollar in foreign exchange markets. The monetary policies of the Federal Reserve have had a significant effect on the operating results of banking institutions in the past and are expected to continue to do so in the future. It is not possible to predict the nature of future changes in monetary and fiscal policies or the effect which they may have on the Company’s business and earnings.

## Corporate Governance

M&T’s Corporate Governance Standards and the following corporate governance documents are also available on M&T’s website at the Investor Relations link: Audit Committee Charter; Compensation and Human Capital Committee Charter; Executive Committee Charter; Nomination and Governance Committee Charter; Risk Committee Charter; Disclosure and Regulation FD Policy; Code of Ethics for CEO and Senior Financial Officers; and Code of Business Conduct and Ethics. In accordance with SEC rules, M&T will post on its website or file a Form 8-K to report any amendment to or waiver from any provision of the Code of Ethics for CEO and Senior Financial Officers or the Code of Business Conduct and Ethics that applies to our Chief Executive Officer, Chief Financial Officer, Controller, or persons performing similar functions. Copies of such governance documents are also available, free of charge, to any person who requests them. Such requests may be directed to M&T Bank Corporation, Shareholder Relations Department, One M&T Plaza, 8th Floor, Buffalo, NY 14203-2399 (Telephone: (716) 842-5138).

## Human Capital Resources

M&T recognizes employees are the difference makers that drive its success. The Company’s talent strategy focuses on recruiting, engaging, developing and retaining high-performing individuals whose strengths align with M&T’s values, purpose and leadership competencies to create and maintain a highly competitive and diverse workforce.

As of December 31, 2022, the Company employed 22,808 full-time and part-time employees. The Company’s current employee base is concentrated in the Northeast and Mid-Atlantic United States, with approximately 51% of employees residing in New York, followed by approximately 10% in Connecticut and 9% in each of Delaware and Maryland. The remainder are primarily concentrated in other states where M&T Bank maintains a retail bank branch presence. Approximately 4% of the Company’s employee base resides outside of its retail banking footprint. Inclusive in the above, as of December 31, 2022, the Company employed 118 international employees based in the UK, Ireland, Canada, Germany and France. The Company’s employee base includes 6,022 employees that support customers in the retail branch network. Overall, the average tenure of the Company’s employees is 9.5 years and the average tenure of the Company’s executive officers is 19.5 years.

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### ***Talent Attraction and Diversity, Equity and Inclusion***

The Company leverages various channels to effectively identify, develop and recruit high-caliber talent throughout its footprint including its current employee base. The Employee Referral Program is a powerful tool for generating applicants and accounted for 23% of new hires in 2022. In addition, the Company's Talent Acquisition Ambassador Program, which was implemented in 2020 and currently includes 48 employees throughout different business lines, dedicated over 800 hours towards promoting awareness of M&T career opportunities within the Company's communities.

The Company's recruitment team strives to create and maintain diverse representation at all levels and in all areas of the organization to promote a sense of belonging among employees and maintain a workforce that reflects the communities the Company serves. Employees attended 70 individual diversity-based recruiting events in 2022 with target audiences crossing many diversity dimensions, such as people of color, veterans, LGBTQ+, individuals with disabilities and women. The Company also works with diversity-focused schools and organizations as part of its efforts to recruit and maintain a diverse workforce. In 2022, 45% of total corporate hires were people of color and 61% were women, 40% of summer interns were people of color, and 53% of the participants in the Company's Technology Internship Program were people of color. As of December 31, 2022, the entire Company's workforce consisted of approximately 60% women and 27% people of color. This year, M&T also partnered with the Department of Defense to further the development of two programs focused on providing active members approaching the end of their service with civilian work experience, industry training, and career development opportunities, post military.

To further drive diversity within the Company, M&T also supports several employee resource group charters and chapters, which are voluntary, employee-driven groups organized around a particular shared interest and characteristic, such as race, ethnicity, gender, sexual orientation or differing abilities. Approximately 30% of the Company's employees and 46% of managers are involved in these groups. The Company's diversity efforts are led by its Chief Diversity Officer, who is a member of senior leadership, and the Senior Leadership Diversity & Inclusion Council, both of which champion inclusion efforts throughout the Company. M&T's Board of Directors also receives regular updates on the Company's diversity, inclusion and belonging efforts.

### ***Engagement and Development***

M&T's commitment to recruiting top talent and regularly soliciting their feedback helps to create a highly engaged employee base that drives the Company's success. Since 2001, the Company has conducted 17 'Engagement Surveys,' with average participation rates above 90%, demonstrating a commitment to fostering candid, open and honest two-way communication with employees to enhance the workplace. All survey results are reviewed with senior management and shared with individual managers, who identify and implement improvements based on employees' feedback, as well as presented to M&T's Board of Directors. Employees also participate in action planning within individual work groups. In addition, M&T conducts other surveys to monitor and guide the employee experience throughout an employee's time with the Company. Surveys are conducted at various times, such as new hire onboarding or separation from the Company, as well as in connection with key events, such as acquisitions.

The Company also encourages engagement with communities through the allotment of 40 hours of paid volunteer time. In 2022, M&T employees volunteered approximately 159,000 hours and served on the boards of 831 non-profit organizations.

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Another key pillar of engagement, employee development and growth, is fostered through the Company's strong performance management philosophy focused on reinforcing corporate values, providing continuous, transparent feedback and recognizing and rewarding outstanding performance. Additional employee development is cultivated through a variety of learning offerings on topics such as technical skills, job-specific knowledge and professional development, including courses aligned with the Company's enterprise-wide leadership competencies. Training content is made available as synchronous, asynchronous, and blended learning solutions to promote employee access. The Company also invests in creating its leaders of tomorrow through various internal programs including its Manager Acceleration Program, Management Development Program, Executive Associate Program, Technology Development Program and two additional programs focused on the Company's high-performing diverse employees - the Rising Leadership Development Program and Equity One.

### ***Compensation, Health and Wellness***

The Company provides comprehensive compensation and benefits programs intended to attract, retain and incentivize its employees. In addition to base pay, these programs (which vary by country and region) include cash incentives, long term equity-based awards, an Employee Stock Purchase Plan, a 401(k) Plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, parental leave, family care resources, flexible work schedules, employee assistance programs and tuition assistance, among others. Over the past year, the Company has also implemented an educational program to provide transparency to employees around the different processes completed to ensure fair and equitable compensation for all team members.

The Company's wellness programs provide employees and their families with resources that may be helpful in navigating life events and are designed to provide support to help improve their well-being. In addition to addressing employees' physical needs through flexible and convenient medical plan and telemedicine options, M&T supports employees' emotional health and social well-being through various programs offered to employees. The Company joins with several of its medical partners to offer sponsored events and courses, led by medical experts, and also works to help employees manage their financial wellness through free educational resources.

### **Competition**

The Company faces extensive and intensive competition in the products and services it offers. The Company competes in offering commercial and personal financial and wealth services with other banking institutions and thrifts and with firms in a number of other industries, such as credit unions, personal loan companies, sales finance companies, leasing companies, securities brokerage firms, mutual fund companies, hedge funds, wealth and investment advisory firms, insurance companies and other financial services-related entities. Furthermore, diversified financial services companies are able to offer a combination of these services to their customers on a nationwide basis. Financial technology companies, using digital, mobile and other technologies, also are increasingly offering traditional banking products and services, which has resulted in the Company contending with a broader range of competitors, including many that are not located within the geographic footprint of the Company's banking office network.

### **Other Information**

Through a link on the Investor Relations section of M&T's website at www.mtb.com, copies of M&T's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, are made available, free of charge, as soon as reasonably practicable after electronically filing such material with, or furnishing it to, the SEC. Copies of such reports and other information are also available at no charge to any person who requests them or at www.sec.gov. Such requests may be

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directed to M&T Bank Corporation, Shareholder Relations Department, One M&T Plaza, 8th Floor, Buffalo, NY 14203-2399 (Telephone: (716) 842-5138).

### Disclosure Pursuant to Subpart 1400 of Regulation S-K

See cross-reference sheet for disclosures incorporated elsewhere in this Annual Report on Form 10-K.

**Table 1**

### SELECTED CONSOLIDATED YEAR-END BALANCES

|  | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- |
|  | (In thousands) |  |  |  |  |
| Interest-bearing deposits at banks | $24,958,719 | $41,872,304 | $23,663,810 | $7,190,154 | $8,105,197 |
| Federal funds sold | 3,000 | - | - | 3,500 | - |
| Trading account | 117,847 | 49,745 | 50,060 | 59,329 | 56,348 |
| Investment securities |  |  |  |  |  |
| U.S. Treasury and federal agencies | 21,476,761 | 6,504,382 | 6,360,218 | 8,746,749 | 11,746,240 |
| Obligations of states and political subdivisions | 2,577,078 | 177 | 1,531 | 4,915 | 9,153 |
| Other | 1,157,032 | 651,301 | 683,948 | 745,587 | 937,420 |
| Total investment securities | 25,210,871 | 7,155,860 | 7,045,697 | 9,497,251 | 12,692,813 |
| Loans and leases |  |  |  |  |  |
| Commercial, financial, leasing, etc. | 42,277,041 | 23,621,188 | 27,801,382 | 23,987,897 | 23,136,913 |
| Commercial real estate | 45,444,010 | 35,473,884 | 37,728,844 | 35,633,593 | 34,448,927 |
| Residential real estate | 23,773,842 | 16,077,275 | 16,786,673 | 16,193,154 | 17,191,566 |
| Consumer | 20,579,263 | 17,964,331 | 16,558,889 | 15,373,881 | 13,956,086 |
| Total loans and leases | 132,074,156 | 93,136,678 | 98,875,788 | 91,188,525 | 88,733,492 |
| Unearned discount | (509,993) | (224,226) | (339,921) | (265,656) | (267,015) |
| Loans and leases, net of unearned discount | 131,564,163 | 92,912,452 | 98,535,867 | 90,922,869 | 88,466,477 |
| Allowance for credit losses | (1,925,331) | (1,469,226) | (1,736,387) | (1,051,071) | (1,019,444) |
| Loans and leases, net | 129,638,832 | 91,443,226 | 96,799,480 | 89,871,798 | 87,447,033 |
| Goodwill | 8,490,089 | 4,593,112 | 4,593,112 | 4,593,112 | 4,593,112 |
| Core deposit and other intangible assets | 209,374 | 3,998 | 14,165 | 29,034 | 47,067 |
| Real estate and other assets owned | 41,375 | 23,901 | 34,668 | 85,646 | 78,375 |
| Total assets | 200,729,841 | 155,107,160 | 142,601,105 | 119,872,757 | 120,097,403 |
| Noninterest-bearing deposits | 65,501,860 | 60,131,480 | 47,572,884 | 32,396,407 | 32,256,668 |
| Savings and interest-checking deposits | 87,911,463 | 68,603,966 | 67,680,840 | 54,932,162 | 50,963,744 |
| Time deposits | 10,101,545 | 2,807,963 | 3,899,910 | 5,757,456 | 6,124,254 |
| Deposits at Cayman Islands office | - | - | 652,104 | 1,684,044 | 811,906 |
| Total deposits | 163,514,868 | 131,543,409 | 119,805,738 | 94,770,069 | 90,156,572 |
| Short-term borrowings | 3,554,951 | 47,046 | 59,482 | 62,363 | 4,398,378 |
| Long-term borrowings | 3,964,537 | 3,485,369 | 4,382,193 | 6,986,186 | 8,444,914 |
| Total liabilities | 175,411,851 | 137,203,755 | 126,413,822 | 104,156,108 | 104,637,212 |
| Shareholders' equity | 25,317,990 | 17,903,405 | 16,187,283 | 15,716,649 | 15,460,191 |

**Table 2**

### SHAREHOLDERS, EMPLOYEES AND OFFICES

| Number at Year-End | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- |
| Shareholders | 32,493 | 16,099 | 16,797 | 17,333 | 18,099 |
| Employees | 22,808 | 17,569 | 17,373 | 17,773 | 17,267 |
| Offices | 1,043 | 724 | 751 | 771 | 794 |

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Table 3

# CONSOLIDATED EARNINGS

|  | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- |
|  | (In thousands) |  |  |  |  |
| Interest income |  |  |  |  |  |
| Loans and leases, including fees | $5,237,405 | $3,748,988 | $3,975,053 | $4,442,182 | $4,164,561 |
| Investment securities |  |  |  |  |  |
| Fully taxable | 447,646 | 141,046 | 176,469 | 288,532 | 323,912 |
| Exempt from federal taxes | 51,113 | 116 | 183 | 321 | 665 |
| Deposits at banks | 509,030 | 47,491 | 32,956 | 141,397 | 108,182 |
| Other | 1,926 | 1,143 | 8,051 | 7,161 | 1,391 |
| Total interest income | 6,247,120 | 3,938,784 | 4,192,712 | 4,879,593 | 4,598,711 |
| Interest expense |  |  |  |  |  |
| Savings and interest-checking deposits | 270,765 | 32,998 | 146,701 | 368,003 | 215,411 |
| Time deposits | 23,867 | 18,635 | 66,280 | 95,426 | 51,423 |
| Deposits at Cayman Islands office | - | 201 | 4,054 | 21,917 | 5,633 |
| Short-term borrowings | 19,426 | 7 | 28 | 24,741 | 5,386 |
| Long-term borrowings | 111,106 | 62,165 | 109,332 | 239,242 | 248,556 |
| Total interest expense | 425,164 | 114,006 | 326,395 | 749,329 | 526,409 |
| Net interest income | 5,821,956 | 3,824,778 | 3,866,317 | 4,130,264 | 4,072,302 |
| Provision for credit losses | 517,000 | (75,000) | 800,000 | 176,000 | 132,000 |
| Net interest income after provision for credit losses | 5,304,956 | 3,899,778 | 3,066,317 | 3,954,264 | 3,940,302 |
| Other income |  |  |  |  |  |
| Mortgage banking revenues | 356,636 | 571,329 | 566,641 | 457,770 | 360,442 |
| Service charges on deposit accounts | 446,604 | 402,113 | 370,788 | 432,978 | 429,337 |
| Trust income | 740,717 | 644,716 | 601,884 | 572,608 | 537,585 |
| Brokerage services income | 87,877 | 62,791 | 47,428 | 48,922 | 51,069 |
| Trading account and non-hedging derivative gains | 26,786 | 24,376 | 40,536 | 62,044 | 32,547 |
| Gain (loss) on bank investment securities | (5,686) | (21,220) | (9,421) | 18,037 | (6,301) |
| Other revenues from operations | 703,669 | 482,889 | 470,588 | 469,320 | 451,321 |
| Total other income | 2,356,603 | 2,166,994 | 2,088,444 | 2,061,679 | 1,856,000 |
| Other expense |  |  |  |  |  |
| Salaries and employee benefits | 2,787,351 | 2,045,677 | 1,950,692 | 1,900,797 | 1,752,264 |
| Equipment and net occupancy | 474,316 | 326,698 | 322,037 | 324,079 | 298,828 |
| Outside data processing and software | 376,493 | 291,839 | 258,480 | 229,731 | 199,025 |
| FDIC assessments | 90,274 | 69,704 | 53,803 | 41,535 | 68,526 |
| Advertising and marketing | 90,748 | 64,428 | 61,904 | 93,472 | 85,710 |
| Printing, postage and supplies | 55,570 | 36,507 | 39,869 | 39,893 | 35,658 |
| Amortization of core deposit and other intangible assets | 55,624 | 10,167 | 14,869 | 19,490 | 24,522 |
| Other costs of operations | 1,120,060 | 766,603 | 683,586 | 819,685 | 823,529 |
| Total other expense | 5,050,436 | 3,611,623 | 3,385,240 | 3,468,682 | 3,288,062 |
| Income before income taxes | 2,611,123 | 2,455,149 | 1,769,521 | 2,547,261 | 2,508,240 |
| Income taxes | 619,460 | 596,403 | 416,369 | 618,112 | 590,160 |
| Net income | $1,991,663 | $1,858,746 | $1,353,152 | $1,929,149 | $1,918,080 |
| Dividends declared |  |  |  |  |  |
| Common | $786,245 | $582,967 | $569,076 | $552,216 | $510,458 |
| Preferred | 96,587 | 72,915 | 68,228 | 72,482 | 72,521 |

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**Table 4**

# **COMMON SHAREHOLDER DATA**

|  | 2022 | 2021 | 2020 | 2019 | 2018 |
| --- | --- | --- | --- | --- | --- |
| Per share |  |  |  |  |  |
| Net income |  |  |  |  |  |
| Basic | $11.59 | $13.81 | $9.94 | $13.76 | $12.75 |
| Diluted | 11.53 | 13.80 | 9.94 | 13.75 | 12.74 |
| Cash dividends declared | 4.80 | 4.50 | 4.40 | 4.10 | 3.55 |
| Common shareholders' equity at year-end | 137.68 | 125.51 | 116.39 | 110.78 | 102.69 |
| Tangible common shareholders' equity at year-end | 86.59 | 89.80 | 80.52 | 75.44 | 69.28 |
| Dividend payout ratio | 41.56% | 32.69% | 44.32% | 29.70% | 27.66% |

**Table 5**

# **CHANGES IN INTEREST INCOME AND EXPENSE (a)**

|  | 2022 Compared with 2021 |  |  | 2021 Compared with 2020 |  |  |
| --- | --- | --- | --- | --- | --- | --- |
|  | Total Change | Resulting from Changes in: |  | Total Change | Resulting from Changes in: |  |
|  |  | Volume | Rate |  | Volume | Rate |
| (Increase (decrease) in thousands) |  |  |  |  |  |  |
| Interest income (a) |  |  |  |  |  |  |
| Loans and leases, including fees | $1,495,960 | 960,566 | 535,394 | $(228,557) | 313 | (228,870) |
| Deposits at banks | 461,539 | (3,446) | 464,985 | 14,535 | 30,322 | (15,787) |
| Federal funds sold and agreements to resell securities | 96 | (172) | 268 | (6,783) | (4,294) | (2,489) |
| Trading account | 687 | 923 | (236) | (169) | (60) | (109) |
| Investment securities |  |  |  |  |  |  |
| U.S. Treasury and federal agencies | 281,472 | 270,334 | 11,138 | (35,670) | (38,576) | 2,906 |
| Obligations of states and political subdivisions | 71,171 | 71,183 | (12) | (95) | (105) | 10 |
| Other | 21,852 | 6,385 | 15,467 | 255 | (642) | 897 |
| Total interest income | $2,332,777 |  |  | $(256,484) |  |  |
| Interest expense |  |  |  |  |  |  |
| Interest-bearing deposits |  |  |  |  |  |  |
| Savings and interest-checking deposits | $237,767 | 8,121 | 229,646 | $(113,703) | 14,603 | (128,306) |
| Time deposits | 5,232 | 8,107 | (2,875) | (47,645) | (17,823) | (29,822) |
| Deposits at Cayman Islands office | (201) | (201) | - | (3,853) | (2,100) | (1,753) |
| Short-term borrowings | 19,419 | 1,162 | 18,257 | (21) | 4 | (25) |
| Long-term borrowings | 48,941 | (1,744) | 50,685 | (47,167) | (40,540) | (6,627) |
| Total interest expense | $311,158 |  |  | $(212,389) |  |  |

(a) Interest income data are on a taxable-equivalent basis. The apportionment of changes resulting from the combined effect of both volume and rate was based on the separately determined volume and rate changes.

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**Item 1A. Risk Factors.**

**Risk Factors Summary**

***Risks Relating to the Acquisition of People’s United***

- M&T may fail to realize the anticipated benefits of the acquisition of People’s United and integrating People’s United may be more difficult, costly or time-consuming than expected.
- M&T may be unable to retain personnel successfully.
- Litigation related to the acquisition has been filed in the past and additional litigation may be filed in the future, which could result in the payment of damages or otherwise negatively impact the business and operations of M&T.

***Market Risk***

- Weakness in the economy has adversely affected the Company in the past and may adversely affect the Company in the future.
- The Company’s business and financial performance is impacted significantly by market interest rates and movements in those rates. The monetary, tax and other policies of governmental agencies, including the Federal Reserve, have a significant impact on interest rates and overall financial market performance over which the Company has no control and which the Company may not be able to anticipate adequately.
- The discontinuation of LIBOR as a permissible rate index in new contracts, the formal announcement of LIBOR’s cessation date, and the development of SOFR and other alternative benchmark indices to replace LIBOR could adversely impact the Company’s business and results of operations.
- The Company’s business and performance is vulnerable to the impact of volatility in debt and equity markets.
- The Company’s regional concentrations expose it to adverse economic conditions in its primary retail banking office footprint.

***Risks Relating to Compliance and the Regulatory Environment***

- The Company is subject to extensive government regulation and supervision and this regulatory environment can be and has been significantly impacted by financial regulatory reform initiatives.
- The Company may be subject to more stringent capital and liquidity requirements.
- M&T’s ability to return capital to shareholders and to pay dividends on common stock may be adversely affected by market and other factors outside of its control and will depend, in part, on the results of supervisory stress tests administered by the Federal Reserve.
- If an orderly liquidation of a systemically important BHC or non-bank financial company were triggered, M&T could face assessments for the Orderly Liquidation Fund (“OLF”).

***Credit Risk***

- Deteriorating credit quality could adversely impact the Company.
- The Company may be adversely affected by the soundness of other financial institutions.

***Liquidity Risk***

- The Company must maintain adequate sources of funding and liquidity.
- If the Company is unable to maintain or grow its deposits, it may be subject to paying higher funding costs.
- M&T relies on dividends from its subsidiaries for its liquidity.

***Strategic Risk***

- The financial services industry is highly competitive and creates competitive pressures that could adversely affect the Company’s revenue and profitability.

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- Difficulties in obtaining regulatory approval for acquisitions and in combining the operations of acquired entities with the Company's own operations may prevent M&T from achieving the expected benefits from its acquisitions.
- M&T could suffer if the Company fails to attract and retain skilled personnel.

# Operational Risk

- The Company is subject to operational risk which could adversely affect the Company's business and reputation and create material legal and financial exposure.
- The Company's information systems may experience interruptions or breaches in security, including due to events beyond the Company's control.
- The Company could incur higher costs, experience lower revenue, and suffer reputational damage in the event of the theft, loss or misuse of information, including due to a cyber security attack.
- The Company is subject to laws and regulations relating to the privacy of the information of customers, clients, employees or others, and any failure to comply with these laws and regulations could expose the Company to liability and/or reputational damage.
- M&T relies on other companies to provide key components of the Company's business infrastructure.
- The Company is or may become involved from time to time in suits, legal proceedings, information-gathering requests, investigations and proceedings by governmental and self-regulatory agencies that may lead to adverse consequences.

# Business Risk

- Changes in accounting standards could impact the Company's reported financial condition and results of operations.
- The Company's reported financial condition and results of operations depend on management's selection of accounting methods and require management to make estimates about matters that are uncertain.
- The Company's models used for business planning purposes could perform poorly or provide inadequate information.
- The Company is exposed to reputational risk.
- The Company's framework for managing risks may not be effective.
- Pandemics, including COVID-19, acts of war or terrorism and other adverse external events could significantly impact the Company's business.
- The Company's assets, communities, operations, reputation and customers could be adversely affected by the impacts of climate risk.

# Risk Factors

M&T and its subsidiaries face a number of potential risks and uncertainties that are difficult to predict. As a financial institution, certain risk elements are inherent in the ordinary course of the Company's business activities and adverse experience with those risks could have a material impact on the Company's business, financial condition, liquidity and results of operations, as well as on the values of the Company's financial instruments and M&T's securities, including its common stock. The following risk factors set forth some of the risks that could materially and adversely impact the Company, although there may be additional risks that are not presently material or known that may adversely affect the Company.

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### Risks Related to the Acquisition of People's United

*M&T may fail to realize the anticipated benefits of the acquisition of People's United and integrating People's United may be more difficult, costly or time-consuming than expected.*

In connection with the acquisition of People's United that was completed on April 1, 2022, M&T has incurred and may further incur costs as M&T continues to integrate the People's United business. The success of the acquisition depends, in part, on the ability to realize the anticipated cost savings from combining the businesses of M&T and People's United. To realize the anticipated benefits and cost savings from the acquisition, M&T must integrate and combine People's United's businesses in a manner that permits cost savings to be realized, without adversely affecting revenues and future growth. If M&T is not able to successfully achieve these objectives, the anticipated benefits of the acquisition may not be realized fully or at all or may take longer to realize than expected. In addition, the actual cost savings of the acquisition could be less than anticipated.

There can be no assurances that the expected benefits and efficiencies related to the acquisition will be realized to offset the transaction and integration costs over time. M&T may also incur additional costs to retain legacy People's United customers, maintain employee morale and to retain key employees. M&T has waived certain fees following conversion of customer deposit accounts to M&T's deposit servicing system, and similar or other costs related to integration of People's United or operations as a combined company may be incurred in the future.

It is possible that challenges related to operating as a combined company could result in the loss of key employees, the disruption of ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect M&T's abilities to maintain relationships with clients, customers, depositors and employees or to achieve the anticipated benefits and cost savings of the acquisition. An inability to realize the full extent of the anticipated benefits of the acquisition could have an adverse effect upon the revenues, levels of expenses and operating results of M&T, which may adversely affect the value of M&T's common stock.

*M&T may be unable to retain personnel successfully.*

The success of the acquisition will depend in part on the Company's ability to retain the talents and dedication of key employees. It is possible that these employees, including key legacy People's United employees, may decide not to remain with the Company. If the Company is unable to retain key employees, including management, who are critical to the successful future operations of the combined company, the Company could face disruptions in its operations, loss of existing customers, loss of key information, expertise or know-how and unanticipated additional recruitment costs. If key employees terminate their employment, the Company's business activities may be adversely affected and the Company may not be able to locate or retain suitable replacements.

*Litigation related to the acquisition has been filed in the past and additional litigation may be filed in the future, which could result in the payment of damages or otherwise negatively impact the business and operations of the Company.*

Although not currently active, litigation related to the acquisition was filed against People's United, the People's United board of directors and M&T prior to the completion of the acquisition. Additional litigation may be filed against M&T and the M&T board of directors in the future. Among other remedies, litigation that was filed sought damages, and additional litigation by shareholders of M&T in the future may seek damages or other remedies. The outcome of any litigation is uncertain. Such lawsuits and the defense or settlement of any such lawsuits may have an adverse effect on the financial condition and results of operations of M&T.

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## **Market Risk**

*Weakness in the economy has adversely affected the Company in the past and may adversely affect the Company in the future.*

Poor business and economic conditions in general or specifically in markets served by the Company could have adverse effects on the Company's business including:

- • A decrease in the demand for loans and other products and services offered by the Company.
- • A decrease in net interest income derived from the Company's lending and deposit gathering activities.
- • A decrease in the value of the Company's investment securities, loans held for sale or other assets secured by residential or commercial real estate.
- • A decrease in fees from the Company's brokerage, trust, and investment management businesses associated with declines or lack of growth in stock market prices.
- • Potential higher FDIC assessments due to the DIF falling below minimum required levels.
- • An impairment of certain intangible assets, such as goodwill.
- • An increase in the number of customers and counterparties who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to the Company. An increase in the number of delinquencies, bankruptcies or defaults could result in higher levels of nonperforming assets, net charge-offs, provision for credit losses as well as impairment write-downs of certain investment securities and valuation adjustments on loans held for sale.

If recessionary economic conditions develop, they would likely have a negative financial impact across the financial services industry, including on the Company. If recessionary economic conditions are more severe, the extent of the negative impact on the Company's business and financial performance can increase and be more severe, including the adverse effects listed above and discussed throughout this 'Risk Factors' section.

Supply chain constraints, robust demand and labor shortages have led to persistent inflationary pressures throughout the economy. Volatility and uncertainty related to inflation and the effects of inflation, which may lead to increased costs for businesses and consumers and potentially contribute to poor business and economic conditions generally, may also enhance or contribute to some of the risks discussed herein. For example, higher inflation, or volatility and uncertainty related to inflation, could reduce demand for the Company's products, adversely affect the creditworthiness of the Company's borrowers, result in lower values for the Company's investment securities and other interest-earning assets and increase expense related to talent acquisition and retention.

Additionally, economic conditions, financial markets and inflationary pressures may be adversely affected by the impact of current or anticipated geopolitical uncertainties, military conflicts, including Russia's invasion of Ukraine, pandemics, including the COVID-19 pandemic, and global, national and local responses thereto by governmental authorities and other third parties. These unpredictable events could create, increase or prolong economic and financial disruptions and volatility that adversely affects the Company's business, financial condition, capital and results of operations.

*The Company's business and financial performance is impacted significantly by market interest rates and movements in those rates. The monetary, tax and other policies of governmental agencies, including the Federal Reserve, have a significant impact on interest rates and overall financial market performance over which the Company has no control and which the Company may not be able to anticipate adequately.*

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The Federal Reserve raised benchmark interest rates throughout 2022 and may continue to raise interest rates in response to economic conditions, particularly inflationary pressures. As a result of the high percentage of the Company's assets and liabilities that are in the form of interest-bearing or interest-related instruments, changes in interest rates, including in the shape of the yield curve or in spreads between different market interest rates, as well as changes linked to inflation, can have a material effect on the Company's business and profitability and the value of the Company's assets and liabilities.

For example, changes in interest rates or interest rate spreads may:

- Affect the difference between the interest that the Company earns on assets and the interest that the Company pays on liabilities, which impacts the Company's overall net interest income and profitability.
- Adversely affect the ability of borrowers to meet obligations under variable or adjustable-rate loans and other debt instruments, which, in turn, affects the Company's loss rates on those assets.
- Decrease the demand for interest rate-based products and services, including loans and deposits.
- Affect the Company's ability to hedge various forms of market and interest rate risk and may decrease the profitability or protection or increase the risk or cost associated with such hedges.
- Affect mortgage prepayment speeds and result in the impairment of capitalized mortgage servicing assets, reduce the value of loans held for sale and increase the volatility of mortgage banking revenues, potentially adversely affecting the Company's results of operations.

The monetary, tax and other policies of the government and its agencies, including the Federal Reserve, have a significant impact on interest rates and overall financial market performance. These governmental policies can thus affect the activities and results of operations of banking organizations such as the Company. An important function of the Federal Reserve is to regulate the national supply of bank credit and certain interest rates. The actions of the Federal Reserve influence the rates of interest that the Company charges on loans and that the Company pays on borrowings and interest-bearing deposits and can also affect the value of the Company's on-balance sheet and off-balance sheet financial instruments. Interest rate increases have recently reduced the value of the Company's investment portfolio, for example, by decreasing the estimated fair value of fixed income securities. Furthermore, as interest rates rise, the Company's unrealized gains on fixed income securities would ordinarily decrease and unrealized losses would ordinarily increase, which occurred in 2022 and could continue to occur in 2023. Also, due to the impact on rates for short-term funding, the Federal Reserve's policies influence, to a significant extent, the Company's cost of such funding, and increases in short-term interest rates have in the past increased, and may in the future increase, the Company's cost of short-term funding.

In addition, the Company is routinely subject to examinations from various governmental taxing authorities. Such examinations may result in challenges to the tax return treatment applied by the Company to specific transactions. Management believes that the assumptions and judgment used to record tax-related assets or liabilities have been appropriate. Should tax laws change or the tax authorities determine that management's assumptions were inappropriate, the result and adjustments required could have a material effect on the Company's results of operations. M&T cannot predict the nature or timing of future changes in monetary, tax and other policies or the effect that they may have on the Company's business activities, financial condition and results of operations.

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*The discontinuation of LIBOR as a permissible rate index in new contracts, the formal announcement of LIBOR’s cessation date, and the development of SOFR and other alternative benchmark indices to replace LIBOR could adversely impact the Company’s business and results of operations.*

The Company’s floating-rate funding, certain hedging transactions and a significant portion of the Company’s products, such as floating-rate loans and mortgages, determine the applicable interest rate or payment amount by reference to a benchmark rate, such as the London Interbank Offered Rate (“LIBOR”), or to an alternative index.

With respect to LIBOR, the United Kingdom’s Financial Conduct Authority (“FCA”), which regulates LIBOR, and the ICE Benchmark Administration (“IBA”), the administrator of LIBOR, have announced that the publication of all tenors of USD LIBOR, which to date have been calculated and determined by the IBA based on the required submissions by independent panel banks, will cease to exist and/or cease to be “representative” after June 30, 2023. In response and in coordination, U.S. federal bank regulators, including the Federal Reserve, required U.S. banks to cease using USD LIBOR as a reference rate in new contracts by December 31, 2021.

Concurrently, the Federal Reserve-sponsored Alternative Reference Rates Committee (“ARRC”) finalized and issued recommendations for the use of so-called “hardwired” LIBOR fallback language that, when incorporated into existing LIBOR-based loan documents, provides for, upon LIBOR’s permanent cessation (or an announcement from LIBOR’s administrator or certain governmental authorities that LIBOR is no longer representative of the underlying market), the replacement of LIBOR with the Secured Overnight Financing Rate (“SOFR”) as the benchmark index, with an appropriate spread adjustment that is representative of the historical difference between LIBOR and SOFR, which when added to SOFR would be intended to facilitate a value-neutral transition. Subsequently, the ARRC expanded its recommendation to include CME Term SOFR, a derivative of SOFR that is currently administered and published by the CME Group Benchmark Administration Limited. In 2021 M&T adopted hardwired fallback language modeled after the ARRC recommendations for use in all new commercial LIBOR loans, and continues to proactively seek amendments to its existing LIBOR-based commercial loan contracts to incorporate such hardwired fallback language or move to an alternative index prior to the cessation of LIBOR.

SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-based repurchase transactions. The fact that SOFR is a secured overnight rate and considered a “risk free” rate, while LIBOR is an unsecured term rate that factors in credit risk, means that SOFR may perform differently than LIBOR, and those differences may be material, particularly in times of economic stress, negatively impacting the Company’s profitability.

While the ARRC has maintained its recommendation that SOFR is the preferred replacement for LIBOR, some industry participants have questioned whether a “risk free” SOFR-based rate is an ideal replacement for LIBOR in the commercial lending market and suggesting that a credit-sensitive component or alternative be considered and developed. One such credit sensitive alternative is the Bloomberg Short-Term Bank Yield Index (BSBY), which gained some modest attention and use in the commercial lending market in the latter half of 2021 (primarily in syndicated loans), but has since gained little traction. Whether BSBY or other alternatives to SOFR develop and gain any significant market traction in the future are unknown and unpredictable at this time, and this adds further market uncertainty with respect to introducing alternative benchmark rates for new contracts.

LIBOR cessation is also impacting the derivatives market. In October 2020, The International Swaps and Derivatives Association, Inc. (ISDA), published the IBOR Fallbacks Supplement (Supplement) and IBOR Fallbacks Protocol (Protocol). The Supplement, which became effective on January 25, 2021, amends existing standard definitions for interest rate derivatives to incorporate robust fallbacks to the SOFR benchmark for derivatives linked to LIBOR. The Protocol enables market

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participants to incorporate these revisions into their legacy non-cleared derivatives trades with other counterparties that choose to adhere to the Protocol. The fallbacks apply following a permanent cessation of LIBOR or following a determination by the FCA that LIBOR is no longer representative of the underlying market. M&T and M&T Bank adhered to the Protocol on November 5, 2020, and the Company is in the process of remediating its interest rate swap hedging transactions with certain of its end user customers, (i.e., borrowers that have hedged their interest rate payment obligations) who have not already adhered to, or amended their legacy derivatives transactions consistent with, the Protocol. If the Company is not able to agree to appropriate LIBOR fallbacks with these customers, there will be uncertainty as to how to value and determine the Company's rights and obligations under legacy derivatives contracts. With respect to the Company's cleared interest rate derivatives that reference LIBOR, both the CME and LCH clearinghouses have adopted the same relevant SOFR benchmark fallbacks of the Supplement and Protocol which also became effective on January 25, 2021.

The Company has outstanding issuances, or acts as an administrative (or calculation) agent or in other capacities, across various maturities of securities referencing LIBOR in which the underlying contracts do not contemplate cessation or contemplate cessation but do so in a manner that may create other risks ('Tough Legacy Contracts'). Some of these contracts provide for selecting replacement rates in a manner that presents significant challenges or that gives the Company or another party discretion to select a rate or provide for determination of a reference rate. In March 2022, the United States Congress enacted the Adjustable Interest Rate (LIBOR) Act ('LIBOR Act') which provides both a statutory framework to replace USD LIBOR with a benchmark rate based on SOFR for Tough Legacy Contracts governed by U.S. law and a safe harbor provision for those entities selecting a SOFR-based rate identified by the Federal Reserve. Under the LIBOR Act, the Federal Reserve must adopt rules to, among other things, identify the applicable SOFR-based replacement rate. In December 2022, the Federal Reserve adopted rules, which identify different SOFR-based replacement rates for derivative contracts, for cash instruments such as floating-rate notes and preferred stock, for consumer loans, for certain government-sponsored enterprise contracts and for certain asset-backed securities. Notwithstanding this availability of statutory frameworks to address Tough Legacy Contracts, there will likely be continued uncertainty surrounding the transition as these frameworks have not been tested, and the finalized regulations from the Federal reserve have not been issued and their effectiveness and ultimate impact is not certain.

A substantial portion of the Company's on- and off-balance sheet financial instruments (many of which have terms that extend beyond 2023) are indexed to LIBOR, including interest rate swap agreements and other contracts used for hedging and non-hedging purposes, loans to commercial customers and consumers (including mortgage loans and other loans), and long-term borrowings. Uncertainty as to the impact of the discontinuation of LIBOR and the replacement of LIBOR with a SOFR-based index or any alternative index could result in pricing volatility, loss of market share in certain products, adverse tax or accounting impacts under certain circumstances, and compliance, legal and operational costs and risks.

The market's transition from LIBOR to an alternative reference rate will be complex and unpredictable, giving rise to a variety of risks, including operational risks, risks of value transfer between contract parties, the potential for customer disputes and litigation, as well as regulatory scrutiny.

*The Company's business and performance is vulnerable to the impact of volatility in debt and equity markets.*

As most of the Company's assets and liabilities are financial in nature, the Company's performance is sensitive to the performance of the financial markets. Turmoil and volatility in U.S. and global financial markets can be a major contributory factor to overall weak economic conditions, leading to some of

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the risks discussed herein, including the impaired ability of borrowers and other counterparties to meet obligations to the Company. Financial market volatility may:

- • Affect the value or liquidity of the Company's on-balance sheet and off-balance sheet financial instruments.
- • Affect the value of capitalized servicing assets.
- • Affect M&T's ability to access capital markets to raise funds. Inability to access capital markets if needed, at cost effective rates, could adversely affect the Company's liquidity and results of operations.
- • Affect the value of the assets that the Company manages or otherwise administers or services for others. Although the Company is not directly impacted by changes in the value of such assets, decreases in the value of those assets would affect related fee income and could result in decreased demand for the Company's services.
- • Impact the nature, profitability or risk profile of the financial transactions in which the Company engages.

Volatility in the markets for real estate and other assets commonly securing financial products has been and may continue to be a significant contributor to overall volatility in financial markets. In addition, unfavorable or uncertain economic and market conditions can be caused by supply chain disruptions, the imposition of tariffs or other limitations on international trade and travel, as well as elevated inflation, which can result in market volatility, negatively impact client activity, and adversely affect the Company’s financial condition and results of operations.

*The Company’s regional concentrations expose it to adverse economic conditions in its primary retail banking office footprint.*

The Company’s core banking business is largely concentrated within the Company’s retail banking office network footprint, located principally in the Northeast and Mid-Atlantic regions. Therefore, the Company is, or in the future may be, particularly vulnerable to adverse changes in economic conditions in the Northeast and Mid-Atlantic regions. The credit quality of the Company’s borrowers may deteriorate for a number of reasons that are outside the Company’s control, including as a result of prevailing economic and market conditions and asset valuations. The trends and risks affecting borrower credit quality, particularly in the Northeast and Mid-Atlantic regions, have caused, and in the future may cause, the Company to experience impairment charges, which are reductions in the recoverable value of an asset, increased purchase demands, wherein customers make withdrawals with minimum notice, higher costs (e.g. servicing, foreclosure, property maintenance), additional write-downs and losses and a potential impact to engage in lending transactions based on a reduction of customer deposits, which could have a material adverse effect on the Company’s business, financial condition and results of operations.

### Risks Relating to Compliance and the Regulatory Environment

*The Company is subject to extensive government regulation and supervision and this regulatory environment can be and has been significantly impacted by financial regulatory reform initiatives.*

The Company is subject to extensive federal and state regulation and supervision. Banking regulations are primarily intended to protect consumers, depositors and the financial system as a whole, not securities holders, including the holders of common stock. These regulations and supervisory guidance affect the Company’s sale and lending practices, capital structure, capital distributions and dividend policy, investment practices, growth and expansionary activity, among other things. Failure to comply with laws, regulations or policies, or to meet supervisory expectations, could result in civil or criminal penalties, including monetary penalties, the loss of FDIC insurance, the revocation of a banking

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charter, other sanctions by regulatory agencies, and/or reputational damage, which could have a material adverse effect on the Company's business, financial condition and results of operations. In this regard, government authorities, including the bank regulatory agencies, can pursue aggressive enforcement actions with respect to compliance and other legal matters involving financial activities, which heightens the risks associated with actual and perceived compliance failures and may also adversely affect the Company's ability to enter into certain transactions or engage in certain activities, or obtain necessary regulatory approvals in connection therewith. In general, the amounts paid by financial institutions in settlement of proceedings or investigations have increased substantially and are likely to remain elevated. In some cases, governmental authorities have required criminal pleas or admissions of wrongdoing as part of such settlements, which could have significant collateral consequences for a financial institution, including loss of customers, restrictions on the ability to access the capital markets, and the inability to operate certain businesses or offer certain products for a period of time. In addition, enforcement matters could impact the Company's supervisory and CRA ratings, which may in turn restrict or limit the Company's activities. A prior enforcement action also increases the risk that regulators and governmental authorities pursue formal enforcement actions in connection with the resolution of an inquiry or investigation, even if unrelated to the prior enforcement action.

Any new regulatory requirements, changes to existing requirements, or changes to interpretations of requirements could require changes to the Company's businesses, result in increased compliance costs and affect the profitability of such businesses. Additionally, such activity could affect the behaviors of third parties with which the Company deals in the ordinary course of business, such as rating agencies, insurance companies and investors. Heightened regulatory scrutiny, requirements or expectations could have significant effects on the Company, including through restrictions on growth or required remediation activities and associated resource requirements, and, in turn, could have a material adverse effect on the Company's business, financial condition and results of operations.

There have been significant revisions to the laws and regulations applicable to the Company that have been enacted or proposed in recent years, and additional proposed changes are anticipated. Many of these and other rules to implement the changes have yet to be finalized, and the final timing, scope and impact of these changes to the regulatory framework applicable to financial institutions remain uncertain. For more information on the regulations to which the Company is subject and recent initiatives to reform financial institution regulation, see Part I, Item 1 - Business.

*The Company may be subject to more stringent capital and liquidity requirements.*

Bank holding companies, including M&T, are subject to capital and liquidity requirements and standards imposed as a result of the Dodd-Frank Act (as amended by EGRRCPA) and the U.S. Basel III-based capital rules. For additional information, see 'Capital Requirements' under Part I, Item 1 - Business.

Regulators have implemented and may, from time to time, implement changes to these regulatory capital adequacy and liquidity requirements. If the Company fails to meet these minimum capital adequacy and liquidity requirements and other regulatory requirements, its business activities, including lending, and its ability to expand, either organically or through acquisitions, could be limited. It could also result in M&T being required to take steps to increase its regulatory capital that may be dilutive to shareholders or limit its ability to pay dividends or otherwise return capital to shareholders, or sell or refrain from acquiring assets. In addition, the liquidity-related provisions of the Federal Reserve's liquidity-related enhanced prudential supervision requirements may reduce the Company's ability to invest in other longer-term assets even if deemed more desirable from a balance sheet management perspective, which could adversely affect its net interest income and net interest margin.

The federal bank regulators have not yet released a proposal to implement the significant revisions of the Basel capital framework announced by the Basel Committee in December 2017, and the impact

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on the Company of these revisions will depend on the manner in which they are implemented in the U.S. with respect to firms such as M&T.

*M&T's ability to return capital to shareholders and to pay dividends on common stock may be adversely affected by market and other factors outside of its control and will depend, in part, on the results of supervisory stress tests administered by the Federal Reserve.*

Any decision by M&T to return capital to shareholders, whether through a common stock dividend or a common stock share repurchase program, requires the approval of M&T's Board of Directors and must comply with applicable capital regulations, including the maintenance of capital ratios exceeding specified minimum levels and applicable buffers.

For bank holding companies designated as Category IV institutions under the Tailoring Rules, including M&T, the Federal Reserve conducts biennial supervisory stress tests required under the Dodd-Frank Act whereby the BHC's financial position is tested under assumed severely adverse economic conditions. The results of those stress tests are incorporated in the determination of M&T's Stress Capital Buffer. As a general matter, if M&T is unable to maintain capital in excess of regulatory minimum levels inclusive of its Stress Capital Buffer, it would be subject to limitations on its ability to make capital distributions, including paying dividends and repurchasing stock. In June 2022, the Federal Reserve released the results of its most recent supervisory stress tests, and based on those results, on October 1, 2022, M&T's stress capital buffer of 4.7% became effective. The results of future supervisory stress tests are uncertain, and a more severe outcome may result in a higher Stress Capital Buffer and an increase in M&T's effective capital requirements. An increased Stress Capital Buffer may restrict M&T's ability to return capital to shareholders, including through paying dividends, entering into acquisitions or repurchasing its common stock, which in turn could negatively impact market and investor perceptions of M&T.

The Federal Reserve has in the past implemented, and may in the future implement, restrictions on share repurchase programs and common stock dividends at large bank holding companies such as M&T, including in response to adverse or uncertain economic conditions.

*If an orderly liquidation of a systemically important BHC or non-bank financial company were triggered, M&T could face assessments for the Orderly Liquidation Fund ('OLF').*

The Dodd-Frank Act created a mechanism, the OLF, for liquidation of systemically important bank holding companies and non-bank financial companies. The OLF is administered by the FDIC and is based on the FDIC's bank resolution model. The Secretary of the U.S. Treasury may trigger a liquidation under this authority after consultation with the President of the U.S. and after receiving a recommendation from the boards of the FDIC and the Federal Reserve upon a two-thirds vote. Liquidation proceedings will be funded by the OLF, which will borrow from the U.S. Treasury and impose risk-based assessments on covered financial companies. Risk-based assessments would be first made on entities that received more in the resolution than they would have received in the liquidation to the extent of such excess, and second, if necessary, on, among others, bank holding companies with total consolidated assets of $50 billion or more, such as M&T. Any such assessments may adversely affect the Company's business, financial condition or results of operations.

### **Credit Risk**

*Deteriorating credit quality could adversely impact the Company.*

As a lender, the Company is exposed to the risk that customers will be unable to repay their loans and other obligations in accordance with the terms of the relevant agreements, and that any collateral securing the loans and obligations may be insufficient to assure full repayment. Credit losses are inherent in the business of making loans and entering into other financial arrangements.

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Factors that influence the Company’s credit loss experience include overall economic conditions affecting businesses and consumers, generally, but also residential and commercial real estate valuations, in particular, given the size of the Company’s real estate loan portfolios. Factors that can influence the Company’s credit loss experience include: (i) the impact of residential real estate values on loans to residential real estate builders and developers and other loans secured by residential real estate; (ii) the concentrations of commercial real estate loans in the Company’s loan portfolio, including in the New York City area; (iii) the amount of commercial and industrial loans to businesses in areas of New York State outside of the New York City area and in central Pennsylvania that have historically experienced less economic growth and vitality than many other regions of the country; (iv) the repayment performance associated with first and second lien loans secured by residential real estate; and (v) the size of the Company’s portfolio of loans to individual consumers, which historically have experienced higher net charge-offs as a percentage of loans outstanding than loans to other types of borrowers. The Company’s credit risk and the performance of its lending portfolios may be affected by concentration in an industry, geography or asset type. As described further in this “Risk Factors” section, the Company’s credit risks may be increased by the impacts of inflation, poor or recessionary economic conditions and financial market volatility. The COVID-19 pandemic created economic and financial disruptions that adversely affected, and may continue to adversely affect, customers.

Commercial real estate valuations can be highly subjective as they are based upon many assumptions. Such valuations can be significantly affected over relatively short periods of time by changes in business climate, economic conditions, interest rates and, in many cases, the results of operations of businesses and other occupants of the real property. Emerging and evolving factors such as the shift to work-from-home or hybrid-work arrangements, changing consumer preferences (including for online shopping), COVID-19-related restrictions and resulting changes in occupancy rates as a result of these and other trends can also impact such valuations over relatively short periods. Similarly, residential real estate valuations can be impacted by housing trends, the availability of financing at reasonable interest rates, governmental policy regarding housing and housing finance, and general economic conditions affecting consumers, as described above.

The Company maintains an allowance for credit losses which represents, in management’s judgment, the amount of losses expected in the loan and lease portfolio. The allowance is determined by management’s evaluation of the loan and lease portfolio based on such factors as the differing economic risks associated with each loan category, the current financial condition of specific borrowers, the economic environment in which borrowers operate, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any guarantees or indemnifications. Management believes that the allowance for credit losses as of December 31, 2022 appropriately reflects expected credit losses in the loan and lease portfolio. However, there is no assurance that the allowance is sufficient to cover all credit losses that may occur.

*The Company may be adversely affected by the soundness of other financial institutions.*

Financial services institutions are interrelated as a result of trading, clearing, counterparty, or other relationships. The Company has exposure to many different industries and counterparties, and routinely executes transactions with counterparties in the financial services industry, including commercial banks, brokers and dealers, investment banks, and other institutional clients. Many of these transactions expose the Company to credit risk in the event of a default by a counterparty or client. In addition, the Company’s credit risk may be exacerbated when the collateral held by the Company cannot be realized or is liquidated at prices not sufficient to recover the full amount of the credit due to or derivative exposure of the Company. Any resulting losses could have a material adverse effect on the Company’s financial condition and results of operations.

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## Liquidity Risk

*The Company must maintain adequate sources of funding and liquidity.*

The Company must maintain adequate funding sources in the normal course of business to support its operations and fund outstanding liabilities, as well as meet regulatory requirements and supervisory expectations. The Company primarily relies on deposits to be a low cost and stable source of funding for the loans it makes and the operations of its business. Core customer deposits, which include noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and time deposits of $250,000 or less, have historically provided the Company with a sizeable source of relatively stable and low-cost funds. In addition to customer deposits, sources of liquidity include borrowings from securities dealers, various Federal Home Loan Banks and the Federal Reserve Bank of New York, as well as the debt and equity capital markets.

The Company's liquidity and ability to fund and operate the business could be materially adversely affected by a variety of conditions and factors, including financial and credit market disruptions and volatility or a lack of market or customer confidence in financial markets in general, which may result in a loss of customer deposits or outflows of cash or collateral and/or ability to access capital markets on favorable terms. Negative news about the Company or the financial services industry generally may reduce market or customer confidence in the Company, which could in turn materially adversely affect the Company's liquidity and funding. Such reputational damage may result in the loss of customer deposits, the inability to sell or securitize loans or other assets, and downgrades in one or more of the Company's credit ratings, and may also negatively affect the Company's ability to access the capital markets. A downgrade in the Company's credit ratings, which could result from general industry-wide or regulatory factors not solely related to the Company, could adversely affect the Company's ability to borrow funds, including by raising the cost of borrowings substantially, and could cause creditors and business counterparties to raise collateral requirements or take other actions that could adversely affect M&T's ability to raise capital. Many of the above conditions and factors may be caused by events over which M&T has little or no control. There can be no assurance that significant disruption and volatility in the financial markets will not occur in the future.

Regulatory changes relating to liquidity and risk management may also negatively impact the Company's results of operations and competitive position. Various regulations have been adopted to impose more stringent liquidity requirements for large financial institutions, including the Company. These regulations address, among other matters, liquidity stress testing and minimum liquidity requirements. The application of certain of these regulations to banking organizations, such as the Company, have been modified, including in connection with the implementation of the tailoring rules in the EGRRCPA.

If the Company is unable to continue to fund assets through customer bank deposits or access funding sources on favorable terms or if the Company suffers an increase in borrowing costs or otherwise fails to manage liquidity effectively, the Company's liquidity, operating margins, financial condition and results of operations may be materially adversely affected. The Company may also need to raise additional capital and liquidity through the issuance of stock, which could dilute the ownership of existing stockholders, or reduce or even eliminate common stock dividends or share repurchases to preserve capital and liquidity.

*If the Company is unable to maintain or grow its deposits, it may be subject to paying higher funding costs.*

The total amount that the Company pays for funding costs is dependent, in part, on the Company's ability to maintain or grow its deposits. If the Company is unable to sufficiently maintain or grow its deposits to meet liquidity objectives, it may be subject to paying higher funding costs. The Company competes with banks and other financial services companies for deposits. Recent increases in short-

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term interest rates have resulted in and may continue to result in more intense competition in deposit pricing. If competitors raise the rates they pay on deposits, the Company’s funding costs may increase, either because the Company raises rates to avoid losing deposits or because the Company loses deposits and must rely on more expensive sources of funding. Customers may also move noninterest-bearing deposits to interest bearing accounts, increasing the cost of those deposits. Checking and savings account balances and other forms of customer deposits may decrease when customers perceive alternative investments, such as the stock market, as providing a better risk/return tradeoff. The Company’s bank customers could withdraw their money and put it in alternative investments, causing the Company to lose a lower cost source of funding. Higher funding costs could reduce the Company’s net interest margin and net interest income.

# *M&T relies on dividends from its subsidiaries for its liquidity.*

M&T is a separate and distinct legal entity from its subsidiaries. M&T typically receives substantially all of its revenue from subsidiary dividends. These dividends are M&T’s principal source of funds to pay dividends on common and preferred stock, pay interest and principal on its debt, and fund purchases of its common stock. Various federal and/or state laws and regulations, as well as regulatory expectations, limit the amount of dividends that M&T’s banking subsidiaries and certain non-bank subsidiaries may pay. Regulatory scrutiny of capital levels at bank holding companies and insured depository institution subsidiaries has increased in recent years and has resulted in increased regulatory focus on all aspects of capital planning, including dividends and other distributions to shareholders of banks, such as parent bank holding companies. See “Item 1 - Business, Supervision and Regulation of the Company, Distributions” for a discussion of regulatory and other restrictions on dividend declarations. Also, M&T’s right to participate in a distribution of assets upon a subsidiary’s liquidation or reorganization is subject to the prior claims of that subsidiary’s creditors. Limitations on M&T’s ability to receive dividends from its subsidiaries could have a material adverse effect on its liquidity and ability to pay dividends on its stock or interest and principal on its debt, and ability to fund purchases of its common stock.

# **Strategic Risk**

*The financial services industry is highly competitive and creates competitive pressures that could adversely affect the Company’s revenue and profitability.*

The financial services industry in which the Company operates is highly competitive. The Company competes not only with commercial and other banks and thrifts, but also with private credit funds, insurance companies, mutual funds, hedge funds, securities brokerage firms, financial technology companies and other companies offering financial services in the U.S., globally and over the Internet. Some of the Company’s non-bank competitors are not subject to the same extensive regulations the Company is, and may have greater flexibility in competing for business. In particular, the activity and prominence of so-called marketplace lenders and other technological financial services companies has grown significantly in recent years and is expected to continue growing. The Company competes on the basis of several factors, including capital, access to capital, revenue generation, products, services, transaction execution, innovation, reputation and price. Over time, certain sectors of the financial services industry have become more concentrated, as institutions involved in a broad range of financial services have been acquired by or merged into other firms. These developments have and could continue to result in the Company’s competitors gaining greater capital and other resources, such as a broader range of products and services and geographic diversity. The Company has and may continue to experience pricing pressures as a result of these factors and as some of its competitors seek to increase market share.

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Finally, technological change is influencing how individuals and firms conduct their financial affairs and is changing the delivery channels for financial services. Financial technology providers, who invest substantial resources in developing and designing new technology (in particular digital and mobile technology) are beginning to offer more traditional banking products (either directly or through bank partnerships) and may in the future be able to provide additional services by obtaining a bank-like charter, such as the OCC's fintech charter. In addition, the emergence, adoption and evolution of new technologies that do not require intermediation, including distributed ledgers such as digital assets and blockchain, as well as advances in robotic process automation, could significantly affect the competition for financial services. As a result, the Company has had and will likely continue to have to contend with a broader range of competitors including many that are not located within the geographic footprint of its banking office network. Further, along with other participants in the financial services industry, the Company frequently attempts to introduce new technology-driven products and services that are aimed at allowing the Company to better serve customers and to reduce costs. The Company may not be able to effectively implement new technology-driven products and services that allow it to remain competitive or be successful in marketing these products and services to its customers.

*Difficulties in obtaining regulatory approval for acquisitions and in combining the operations of acquired entities with the Company's own operations may prevent M&T from achieving the expected benefits from its acquisitions.*

M&T has expanded its business through past acquisitions and may do so in the future. The Company's ability to complete acquisitions is in many instances subject to regulatory approval, and the Company cannot be certain when or if, or on what terms and conditions, any required regulatory approvals would be granted. Any requisite approval could be delayed or not obtained at all, including due to, among other factors, an adverse development in either party's regulatory standing or in any other factors considered by regulators when granting such approval, including factors not known at the time of entering into the definitive agreement for the acquisition or submission of the related application for regulatory approval, and factors that may arise subsequently; governmental, political or community group inquiries, investigations or opposition; or changes in legislation or the political environment more generally.

In addition, inherent uncertainties exist when integrating the operations of an acquired entity. Acquiring other entities involves potential risks that could have a material adverse impact on the Company's business, financial condition and results of operations, including:

- • Inability to fully achieve the Company's strategic objectives and planned operating efficiencies in an acquisition.
- • Issues arising during transition and integration.
- • Disruption of the Company's business and diversion of management's time and attention.
- • Exposure to unknown or contingent liabilities of acquired institutions.
- • Loss of key employees and customers of acquired institutions.
- • Dilution in the ownership percentage of holders of M&T common stock.
- • Payment of a premium over book and market values that may dilute the Company's tangible book value and earnings per common share in the short and long-term.
- • Inability to realize the expected benefits of the acquisition due to lower financial results pertaining to the acquired entity (for example, the Company could experience higher credit losses, incur higher operating expenses or realize less revenue than originally anticipated related to an acquired entity).
- • Changes in banking or tax laws or regulations that could impair or eliminate the expected benefits of merger and acquisition activities.

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*M&T could suffer if it fails to attract and retain skilled personnel.*

M&T’s success depends, in large part, on its ability to attract and retain key individuals and to have a diverse workforce. Competition for qualified and diverse candidates in the activities in which the Company engages and markets that the Company serves is significant, and the Company may not be able to hire candidates and retain them. Growth in the Company’s business, including through acquisitions, may increase its need for additional qualified personnel. The Company is increasingly competing for personnel with financial technology providers and other less regulated entities who may not have the same limitations on compensation as the Company does. Recruiting and compensation costs may increase as a result of changes in the marketplace, which may increase costs and adversely impact the Company. The increase in remote and hybrid work arrangements and opportunities in regional, national and global labor markets has also increased competition for the Company to attract and retain skilled personnel. The Company’s current or future approach to in-office and remote-work arrangements may not meet the needs or expectations of current or prospective employees or may not be perceived as favorable as compared with the arrangements offered by other companies, which could adversely affect the Company’s ability to attract and retain employees. If the Company is not able to hire or retain highly skilled, qualified and diverse individuals, it may be unable to execute its business strategies and may suffer adverse consequences to its business, financial condition and results of operations.

The Company’s compensation practices are subject to review and oversight by the Federal Reserve, the OCC, the FDIC and other regulators. The federal banking agencies have issued joint guidance on executive compensation designed to help ensure that a banking organization’s incentive compensation policies do not encourage imprudent risk taking and are consistent with the safety and soundness of the organization. In addition, the Dodd-Frank Act required those agencies, along with the SEC, to adopt rules to require reporting of incentive compensation and to prohibit certain compensation arrangements. If as a result of complying with such rules the Company is unable to attract and retain qualified employees, or do so at rates necessary to maintain its competitive position, or if the compensation costs required to attract and retain employees become more significant, the Company’s performance, including its competitive position, could be materially adversely affected.

### *Operational Risk*

*The Company is subject to operational risk which could adversely affect the Company’s business and reputation and create material legal and financial exposure.*

Like all businesses, the Company is subject to operational risk, which represents the risk of loss resulting from human error or misconduct, inadequate or failed internal processes and systems, and external events, including the risk of loss resulting from fraud by employees or persons outside the company, and breaches in data security. Operational risk also encompasses reputational risk and compliance and legal risk, which is the risk of loss from violations of, or noncompliance with, laws, rules, regulations, prescribed practices or ethical standards, as well as the risk of noncompliance with contractual and other obligations. The Company is also exposed to operational risk through outsourcing arrangements, and the effect that changes in circumstances or capabilities of its outsourcing vendors can have on the Company’s ability to continue to perform operational functions necessary to its business. Although the Company seeks to mitigate operational risk through a system of internal controls that are reviewed and updated, no system of controls, however well designed and maintained, is infallible. Control weaknesses or failures or other operational risks could result in charges, increased operational costs, harm to the Company’s reputation or foregone business opportunities.

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*The Company's information systems may experience interruptions or breaches in security, including due to events beyond the Company's control.*

The Company relies heavily on communications and information systems, including those of third-party service providers, to conduct its business. Any failure, interruption or breach in security of these systems could result in disruptions to its accounting, deposit, loan and other systems, and adversely affect the Company's customer relationships. Disruption of operating systems caused by events beyond the Company's control may include computer viruses, electrical or telecommunications outages, quality of vulnerability patches, cyber security attacks (including Distributed Denial of Service attacks, which occur when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor), damage to property or physical assets, or events arising from political protests or terrorist acts. While the Company has policies and procedures designed to prevent or limit the effect of these possible events, there can be no assurance that any such failure, disruption, interruption or security breach will not occur or, if any does occur, that it can be sufficiently or timely remediated.

Information security risks for large financial institutions such as M&T have increased significantly in recent years in part because of the proliferation of new technologies, such as digital and mobile banking to conduct financial transactions, and the increased sophistication and activities of organized crime, hackers, terrorists, nation-states, activists and other external parties. There have been increasing efforts on the part of third parties, including through cyber security attacks, to breach data security at financial institutions or with respect to financial transactions. There have been numerous instances involving financial services and consumer-based companies reporting unauthorized access to and disclosure of client or customer information or the destruction or theft of corporate data, including by executive impersonation and third party vendors, or the freezing of operating systems and databases making them inaccessible or unusable. There have also been several highly publicized cases where hackers have requested 'ransom' payments in exchange for not disclosing customer information or for restoring access to, or the usage of, operating systems and databases. Ransomware is a form of malicious software, known as 'malware,' designed to block access to, and often encrypt, computer systems or data. Once the victim's computer system or data is locked down and encrypted, rendering it essentially useless, the malicious cyber actor then extorts the victim by demanding a ransom payment in exchange for providing a method to decrypt it. The attacker may also copy the victim's data in the course of the attack and threaten to sell or publish the data if the ransom is not paid. Ransomware attacks can result in a loss of business functionality and of sensitive data.

As cyber security threats continue to evolve, the Company expects to continue to expend significant additional resources to modify or enhance its layers of defense or to investigate and remediate any information security vulnerabilities. The techniques used by cyber security criminals change frequently, may not be recognized until launched and can be initiated by a variety of actors, including terrorist organizations and hostile foreign governments. These techniques may include attempts to fraudulently induce employees, customers or others to disclose sensitive information in order to gain access to data or systems. These risks may increase as the use of mobile payment and other Internet-based applications expands.

Further, third parties with which the Company does business, as well as vendors and other third parties with which the Company's customers do business, can also be sources of information security risk to the Company, particularly where activities of customers are beyond the Company's security and control systems, such as through the use of the Internet, personal computers, tablets, smart phones and other mobile services. Risks relating to cyber attacks on vendors and other third parties, including supply chain attacks affecting software and information technology service providers, have been rising as such attacks become increasingly frequent and severe. Security breaches affecting the Company's customers, or systems breakdowns, failures, security breaches or employee misconduct affecting such

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other third parties, may require the Company to take steps to protect the integrity of its own systems or to safeguard confidential information of the Company or its customers, thereby increasing the Company's operational costs and adversely affecting its business. Additionally, successful cyber security attacks at other large financial institutions, whether or not the Company is impacted, could lead to a general loss of customer confidence in financial institutions that could negatively affect M&T, including harming the market perception of the effectiveness of the Company's security measures or the financial system in general which could result in reduced use of the Company's financial products. Though the Company has insurance against some cyber security risks and attacks, it may not be sufficient to offset the impact of a material loss event.

The Company, as well as third parties with which the Company does business, has expanded the use of cloud service providers, which could experience system breakdowns or failures, outages, downtime, cyber security-attacks, negative changes to financial condition, bankruptcy, or other adverse conditions, which could have a material adverse effect on the Company's business and reputation. For example, during 2021, there were a number of widely publicized cases of outages in connection with access to cloud service providers. Thus, increasing the amount of infrastructure that the Company or its vendors and service providers outsource to the cloud or to other parties may increase M&T's risk exposure. The failure to properly upgrade or maintain the computer systems could result in greater susceptibility to attacks, particularly in light of the greater frequency and severity of attacks in recent years, as well as the growing prevalence of supply chain attacks affecting software and information technology service providers. Failures related to upgrades and maintenance also increase risks related to unauthorized access and misuse, as well as the Company's ability to achieve its business continuity and resiliency objectives.

*The Company could incur higher costs, experience lower revenue, and suffer reputational damage in the event of the theft, loss or misuse of information, including due to a cyber security attack.*

Like other financial services firms, the systems, networks and devices of the Company, its customers, employees, service providers or other third parties with whom the Company interacts continue to be the subject of attempted unauthorized access, denial-of-service attacks, computer viruses, hacking, malware, ransomware, phishing or other forms of social engineering, and cyber security attacks designed to obtain confidential information, destroy data, disrupt or degrade service, eliminate access or cause other damage. These threats may arise from human error, fraud on the part of employees, insiders or third parties or may result from accidental technology failure or vulnerabilities of suppliers through supply chain attacks. Further, cyber security and information security risks for financial institutions have generally increased because of, among other things, the growth of new technologies, the use of the Internet and telecommunications technologies (including computers, smartphones, and other mobile devices outside the Company's systems) by customers to conduct financial transactions, and the increased sophistication and activities of organized crime, fraudsters, hackers, terrorists, activists, instrumentalities of foreign governments and other external parties.

Although the Company believes that a robust suite of authentication and layered security controls, data encryption and tokenization, threat intelligence, anti-malware defenses and vulnerability management tools exist, the failure of any of these controls could result in a failure to detect, mitigate or remediate these risks in a timely manner. Moreover, potential new regulations may require the Company to disclose information about a cybersecurity event before it has been resolved or fully investigated. Further, as the Company expands its mobile and digital capabilities, cyber security risks increase.

A disruption or breach, including as a result of a cyber security attack, or media reports of perceived security vulnerabilities at the Company or at third-party service providers could result in significant legal and financial exposure, regulatory intervention, remediation costs, damage to reputation or loss of confidence in the security of systems, products and services that could adversely

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affect the Company's business. Like other U.S. financial services providers, the Company continues to be targeted with evolving and adaptive cyber security threats from sophisticated third parties. Although the Company is not aware of any material losses relating to cyber security incidents, there can be no assurance that unauthorized access or cyber security incidents will not become known or occur or that the Company will not suffer such losses in the future.

*The Company is subject to laws and regulations relating to the privacy of the information of customers, clients, employees or others, and any failure to comply with these laws and regulations could expose the Company to liability and/or reputational damage*

The Company is also subject to laws and regulations relating to the privacy of the information of customers, clients, employees or others, and any failure to comply with these laws and regulations could expose the Company to liability and/or reputational damage. New privacy and data protection initiatives will impose additional operational burdens on the Company, may limit the Company's ability to pursue desirable business initiatives and increase the risks associated with any future use of customer data. Significant examples include the General Data Protection Regulation ('GDPR'), the UK GDPR, known as The Data Protection Act of 2018, and the California Consumer Privacy Act. Compliance with these and other laws and regulations may require changes to policies, procedures and technology for information security and segregation of data, which could, among other things, make the Company more vulnerable to operational failures, and to monetary penalties, litigation or regulatory enforcement actions for breach of such laws and regulations.

As privacy-related laws and regulations are implemented, they may also limit how companies like M&T can use personal data and impose obligations on companies in their management of such data. The time and resources needed for the Company to comply with such laws and regulations, as well as its potential liability for non-compliance and reporting obligations in the case of data breaches, may significantly increase. The impacts will be greater to the extent requirements vary across jurisdictions.

*M&T relies on other companies to provide key components of the Company's business infrastructure.*

Third parties provide key components of the Company's business infrastructure such as banking services, processing, and Internet connections and network access. Any disruption in such services provided by these third parties or any failure of these third parties to handle current or higher volumes of use could adversely affect the Company's ability to deliver products and services to clients and otherwise to conduct business. Technological or financial difficulties of a third party service provider could adversely affect the Company's business to the extent those difficulties result in the interruption or discontinuation of services provided by that party. The Company may not be insured against all types of losses as a result of third party failures and insurance coverage may be inadequate to cover all losses resulting from system failures or other disruptions. Failures in the Company's business infrastructure could interrupt the operations or increase the costs of doing business.

Additionally, the Company is exposed to the risk that a service disruption at a common service provider to the Company's third-party service providers could impede their ability to provide services to the Company. Notwithstanding any attempts to diversify its reliance on third parties, the Company may not be able to effectively mitigate operational risks relating to its vendors' use of common service providers.

*The Company is or may become involved from time to time in suits, legal proceedings, information-gathering requests, investigations and proceedings by governmental and self-regulatory agencies that may lead to adverse consequences.*

Many aspects of the Company's business and operations involve substantial risk of legal liability. M&T and/or its subsidiaries have been named or threatened to be named as defendants in various

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lawsuits arising from its or its subsidiaries' business activities (and in some cases from the activities of companies M&T has acquired). In addition, from time to time, M&T is, or may become, the subject of governmental and self-regulatory agency information-gathering requests, reviews, investigations and proceedings and other forms of regulatory inquiry, including by bank and other regulatory agencies, the SEC and law enforcement authorities. The SEC has announced a policy of seeking admissions of liability in certain settled cases, which could adversely impact the defense of private litigation. M&T is also at risk with respect to its obligations to indemnify directors and officers of it and its subsidiaries in connection with certain legal matters as well as in situations where it has agreed to indemnify others for losses related to legal proceedings, including for litigation and governmental investigations and inquiries, such as in connection with the purchase or sale of a business or assets. The results of such proceedings could lead to significant civil or criminal penalties, including monetary penalties, damages, adverse judgments, settlements, fines, injunctions, restrictions on the way in which the Company conducts its business, or reputational harm.

Although the Company establishes accruals for legal proceedings when information related to the loss contingencies represented by those matters indicates both that a loss is probable and that the amount of loss can be reasonably estimated, the Company does not have accruals for all legal proceedings where it faces a risk of loss. In addition, due to the inherent subjectivity of the assessments and unpredictability of the outcome of legal proceedings, amounts accrued may not represent the ultimate loss to the Company from the legal proceedings in question. Thus, the Company's ultimate losses may be higher, and possibly significantly so, than the amounts accrued for legal loss contingencies, which could adversely affect the Company's financial condition and results of operations.

### ***Business Risk***

*Changes in accounting standards could impact the Company's reported financial condition and results of operations.*

The accounting standard setters, including the Financial Accounting Standards Board ('FASB'), the SEC and other regulatory bodies, periodically change the financial accounting and reporting standards that govern the preparation of the Company's consolidated financial statements. These changes can be difficult to predict and can materially impact how the Company records and reports its financial condition and results of operations. In some cases, the Company could be required to apply a new or revised standard retroactively, which would result in the restating of the Company's prior period financial statements. Information about recently adopted and not as yet adopted accounting standards is included in note 27 of Notes to Financial Statements included in Part II, Item 8 - Financial Statements and Supplemental Data of this Form 10-K.

*The Company's reported financial condition and results of operations depend on management's selection of accounting methods and require management to make estimates about matters that are uncertain.*

Accounting policies and processes are fundamental to the Company's reported financial condition and results of operations. Some of these policies require use of estimates and assumptions that may affect the reported amounts of assets or liabilities and financial results. Several of M&T's accounting policies are critical because they require management to make difficult, subjective and complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. Pursuant to generally accepted accounting principles, management is required to make certain assumptions and estimates in preparing the Company's financial statements. If assumptions or estimates underlying the Company's financial statements are incorrect, the Company may experience material losses.

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Management has identified certain accounting policies as being critical because they require management’s judgment to ascertain the valuations of assets, liabilities, commitments and contingencies. A variety of factors could affect the ultimate value that is obtained either when earning income, recognizing an expense, recovering an asset, valuing an asset or liability, or recognizing or reducing a liability. M&T has established detailed policies and control procedures that are intended to ensure these critical accounting estimates and judgments are well controlled and applied consistently. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. Because of the uncertainty surrounding judgments and the estimates pertaining to these matters, M&T could be required to adjust accounting policies or restate prior period financial statements if those judgments and estimates prove to be incorrect. For additional information, see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, “Critical Accounting Estimates” and Note 1, “Significant Accounting Policies,” of Notes to Financial Statements in Part II, Item 8.

*The Company’s models used for business planning purposes could perform poorly or provide inadequate information.*

The Company uses quantitative models to assist in measuring risks and estimating or predicting certain financial values, among other uses. The Company uses models throughout many of its business lines, relying on them, along with its judgement, for many decision making processes. Examples of areas where the Company uses models include determining the pricing of various products, grading loans and extending credit, measuring interest rate and other market risks, predicting or estimating losses, assessing capital adequacy, and calculating economic and regulatory capital levels. The Company also uses models to estimate the value of financial instruments and balance sheet items. Models generally evaluate the performance of various factors under anticipated future conditions, relying on historical data to help build the model and in part on assumptions as to the future, often with respect to macro-economic conditions, in order to generate the output. The models used may not accurately account for all variables and may fail to predict outcomes accurately and/or may overstate or understate certain effects. Poorly designed, implemented, or managed models or misused models, including in the choice of relevant historical data or future-looking assumptions, present the risk that the Company’s business decisions that consider information based on such models will be adversely affected due to inadequate or inaccurate information, which may damage the Company’s reputation and adversely affect its reported financial condition and results of operations. Even if the underlying assumptions used in the Company’s models are adequate, the models may be deficient due to errors in computer code, use of bad data during development or input into the model during model use, or the use of a model for a purpose outside the scope of the model’s design. As a result, the Company’s models may not fully capture or express the risks the Company faces, may suggest that the Company has sufficient capital when it may not, or may lead the Company to misjudge the business and economic environment in which it operates. If the models fail to produce reliable results on an ongoing basis, the Company may not make appropriate risk management, capital planning, or other business or financial decisions. Furthermore, strategies that the Company employs to manage and govern the risks associated with its use of models may not be effective or fully reliable, and as a result, the Company may realize losses or other lapses. Finally, information the Company provides to the public or to its regulators based on poorly designed, implemented, or managed models or misused models could be inaccurate or misleading. Some of the decisions that the Company’s regulators make, including those related to capital distributions to M&T’s stockholders, could be affected adversely due to their perception that the quality of the models used to generate the relevant information is insufficient.

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# *The Company is exposed to reputational risk.*

A negative public opinion of the Company and its business can result from any number of activities, including the Company’s lending practices, corporate governance and regulatory compliance, acquisitions and actions taken by regulators or by community organizations in response to these activities. Significant harm to the Company’s reputation could also arise as a result of regulatory or governmental actions, litigation, employee misconduct or the activities of customers, other participants in the financial services industry or the Company’s contractual counterparties, such as service providers and vendors. A service disruption of the Company’s technology platforms or an impact to the Company’s branches could have a negative impact on a customer’s access to banking services and harm the Company’s reputation with customers. In particular, a cyber security event impacting the Company’s or its customers’ data could have a negative impact on the Company’s reputation and customer confidence in the Company and its cyber security. Damage to the Company’s reputation could also adversely affect its credit ratings and access to the capital markets.

Additionally, whereas negative public opinion once was primarily driven by adverse news coverage in traditional media, the increased use of social media platforms facilitates the rapid dissemination of information or misinformation, which magnifies the potential harm to the Company’s reputation.

# *The Company's framework for managing risks may not be effective.*

The Company’s risk management framework is made up of various processes and strategies to manage its risk exposure. The framework to manage risk, including the framework’s underlying assumptions, may not be effective under all conditions and circumstances. If the risk management framework proves ineffective, the Company could suffer unexpected losses and could be materially adversely affected.

The Company has established processes and procedures intended to identify, measure, monitor, report, and analyze the types of risk to which it is subject, including liquidity risk, credit risk, market risk, interest rate risk, compliance risk, strategic risk, reputational risk, and operational risk related to its employees, systems and vendors, among others. There are inherent limitations to the Company’s risk management strategies as there may exist, or develop in the future, risks that it has not appropriately anticipated or identified. In addition, the Company relies on both qualitative and quantitative factors, including models, to monitor, measure and analyze certain risks and to estimate certain financial values, which are subject to error. The Company must also develop and maintain a culture of risk management among its employees, as well as manage risks associated with third parties, and could fail to do so effectively. If the Company’s risk management framework proves ineffective, the Company could incur litigation and negative regulatory consequences, and suffer unexpected losses that could affect its financial condition or results of operations.

# *Pandemics, including COVID-19, acts of war or terrorism and other adverse external events could significantly impact the Company's business.*

Pandemics, including the COVID-19 pandemic, acts of war, military conflicts, including Russia’s invasion of Ukraine, or terrorism and other adverse external events, including severe weather and other natural disasters, could have a significant impact on the Company’s ability to conduct business. Such events could affect the stability of the Company’s deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in loss of revenue and/or cause the Company to incur additional expenses. Although the Company has established disaster recovery plans and procedures, and monitors for significant environmental effects on its properties or its investments, the occurrence of any such event could have a material adverse effect on the Company.

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For example, the COVID-19 pandemic created economic and financial disruptions that adversely affected, and may in the future adversely affect, the Company’s business, financial condition, capital and results of operations. The extent to which the COVID-19 pandemic will in the future negatively affect the Company’s business, financial condition, capital and results of operations will depend on highly uncertain and unpredictable developments, including the scope and duration of any surges in the pandemic, the emergence of new variants, the effectiveness and distribution of vaccines and other public health measures, the continued effectiveness of M&T’s business continuity plans, the direct and indirect impact of the pandemic on the Company’s employees, customers, clients, counterparties, vendors, service providers and other market participants, and actions taken by governmental authorities and other third parties in response to the pandemic.

Depending on the impact of pandemics, such as the COVID-19 pandemic, military conflicts such as Russia’s invasion of Ukraine, terrorism and other detrimental or destabilizing global and national events on general economic and market conditions, consumer and corporate spending and investment and borrowing patterns, there is a risk that adverse conditions could occur, including supply chain disruptions; higher inflation; decreased demand for the Company’s products and services or those of its borrowers, which could increase credit risk; challenges related to maintaining sufficient qualified personnel due to labor shortages, talent attrition, employee illness, willingness to return to work; and disruptions to business operations at the Company and at counterparties, vendors and other service providers. Even after such events fully subside, the U.S. economy may experience a prolonged economic slowdown or recession, and M&T anticipates the Company’s businesses would be materially and adversely affected by a prolonged economic slowdown or recession.

The escalation or continuation of the war between Russia and Ukraine or other hostilities could result in, among other things, further increased risk of cyber attacks, supply chain disruptions, higher inflation, lower consumer demand and increased volatility in commodity, currency and other financial markets.

To the extent that pandemics, including the COVID-19 pandemic, acts of war, including Russia’s invasion of Ukraine, or terrorism and other detrimental external events adversely affect the Company’s business, financial condition, liquidity, capital or results of operations, such factors may also have the effect of heightening many of the other risks described in this “Risk Factors” section.

*The Company’s assets, communities, operations, reputation and customers could be adversely affected by the impacts of climate risk.*

The Company operates in regions where its businesses and the activities of its customers could be negatively impacted by climate risk. This includes the physical risks resulting from chronic shifts in climate, such as rising average global temperatures, rising sea levels and acute climate events, such as an increase in the frequency and severity of extreme weather events and natural disasters, including floods, wildfires, hurricanes and tornados. Such chronic shifts and events could damage or otherwise impact the value or productivity of customers’ assets and disrupt the Company’s operations and the operations of customers or third parties on which the Company relies. They could also result in market volatility, negatively impact the Company’s customers’ ability to repay outstanding loans, and damage or deteriorate the value of collateral. Over time such risks may result in both increasing premiums for and reduced availability of insurance and have a broader impact on the economy.

Further, climate risk may manifest from efforts to transition to a low-carbon economy. Transition risks may arise from changes in consumer and business preferences, legislation, regulation, policy, and technological advancement associated with the changes necessary to limit climate change. Such risks may result in increased expenses or otherwise adversely impact the Company and its customers, including the ability of customers to repay outstanding loans. The Company could experience increased expenses resulting from climate-related strategic planning and market changes, as well as litigation and reputational harm as a result of negative public sentiment, regulatory scrutiny and reduced investor

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and stakeholder confidence due to its climate change strategy and responses. For example, the Company's reputation may be damaged and its financial condition could suffer as a result of the ineffective identification, monitoring or management of risks relating to providing financial services to certain industries or projects that are sensitive to a transition to a lower carbon economy, as well as any decisions the Company makes to continue to conduct or change its activities in response to considerations relating to climate change.

Ongoing legislative or regulatory uncertainties and changes regarding appropriate climate risk management, practices and disclosures, such as the climate-related disclosure rules proposed by the SEC in 2022, may also result in higher regulatory, compliance and other expenses. In addition, the expectations of federal and state banking regulators, investors and other stakeholders are continuously evolving and may require financial institutions including the Company, to adhere to increased requirements and expectations regarding the disclosure and management of their climate risks and related lending, investment, operations and advisory activities.

Discussions of the specific risks outlined above and other risks facing the Company are included within this Annual Report on Form 10-K in Part I, Item 1 'Business,' and Part II, Item 7 'Management's Discussion and Analysis of Financial Condition and Results of Operations.' Furthermore, in Part II, Item 7 under the heading 'Forward-Looking Statements' is included a description of certain risks, uncertainties and assumptions identified by management that are difficult to predict and that could materially affect the Company's financial condition and results of operations, as well as the value of the Company's financial instruments in general, and M&T common stock, in particular.

In addition, the market price of M&T common stock may fluctuate significantly in response to a number of other factors, including changes in securities analysts' estimates of financial performance, volatility of stock market prices and volumes, rumors or erroneous information, changes in market valuations of similar companies and changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies.

#### **Item 1B. *Unresolved Staff Comments.***

None.

#### **Item 2. *Properties.***

Both M&T and M&T Bank maintain their executive offices at One M&T Plaza in Buffalo, New York. This twenty-one story headquarters building, containing approximately 300,000 rentable square feet of space, is owned by M&T Bank. M&T, M&T Bank and their subsidiaries occupy 100% of the building. At December 31, 2022, the cost of this property (including improvements subsequent to the initial construction), net of accumulated depreciation, was $25.9 million.

M&T Bank owns and occupies an additional facility in Buffalo, New York (known as M&T Center) with approximately 395,000 rentable square feet of space. At December 31, 2022, the cost of this building (including improvements subsequent to acquisition), net of accumulated depreciation, was $11.9 million.

M&T Bank also owns and occupies three separate facilities in the Buffalo area which support certain back-office and operations functions of the Company. The total square footage of these facilities approximates 290,000 square feet and their combined cost (including improvements subsequent to acquisition), net of accumulated depreciation, was $24.6 million at December 31, 2022.

M&T Bank owns facilities in Wilmington, Delaware, with approximately 340,000 (known as Wilmington Center) and 295,000 (known as Wilmington Plaza) rentable square feet of space, respectively. M&T Bank occupies approximately 100% of Wilmington Center and approximately 23% of Wilmington Plaza. At December 31, 2022, the cost of these buildings (including improvements

46

subsequent to acquisition), net of accumulated depreciation, was $39.1 million and $14.5 million, respectively.

M&T Bank also owns facilities in Millsboro, Delaware and Harrisburg, Pennsylvania with approximately 325,000 and 220,000 rentable square feet of space, respectively. M&T Bank occupies 100% and approximately 29% of those facilities, respectively. At December 31, 2022, the cost of those buildings (including improvements subsequent to acquisition), net of accumulated depreciation, was $15.9 million and $8.0 million, respectively.

The Company obtained facilities in connection with the People's United acquisition, including a building in Bridgeport, Connecticut, (known as Bridgeport Center) with approximately 450,000 rentable square feet of space. The Company occupies approximately 89% of that facility. At December 31, 2022, the cost of that building (including improvements subsequent to acquisition), net of accumulated depreciation, was $35.7 million.

M&T owns many other properties none which have more than 100,000 square feet of space. The Company also leases office space and other facilities to support its business operations. The cost and accumulated depreciation and amortization of the Company's premises and equipment and information regarding the Company's lease arrangements is detailed in note 6 of Notes to Financial Statements filed herewith in Part II, Item 8, 'Financial Statements and Supplementary Data.'

Of the 1,010 domestic banking office locations of M&T's subsidiary banks at December 31, 2022, 366 are owned and 644 are leased.

### **Item 3. *Legal Proceedings.***

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and other matters in which claims for monetary damages are asserted. On an ongoing basis management, after consultation with legal counsel, assesses the Company's liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $25 million as of December 31, 2022. Although the Company does not believe that the outcome of pending legal matters will be material to the Company's consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

### **Item 4. *Mine Safety Disclosures.***

Not applicable.

### **Executive Officers of the Registrant**

Information concerning M&T's executive officers is presented below. The year the officer was first appointed to the indicated position with M&T or its subsidiaries is shown parenthetically. In the case of each entity noted below, officers' terms run until the first meeting of the board of directors after such entity's annual meeting, which in the case of M&T takes place immediately following the Annual Meeting of Shareholders, and until their successors are elected and qualified.

René F. Jones, age 58, is chief executive officer, chairman of the board and a director of M&T and M&T Bank (2017). Previously, he was a senior executive vice president of M&T and a vice chairman of M&T Bank with responsibility for the Company's Wealth and Institutional Services Division, Treasury Division, and Mortgage and Consumer Lending Divisions. Mr. Jones had also

47

served as chairman of the board and a director of Wilmington Trust Investment Advisors, a director of M&T Insurance Agency, chief financial officer of M&T, M&T Bank and Wilmington Trust, N.A. and held a number of management positions within M&T Bank’s Finance Division since 1992.

Richard S. Gold, age 62, is president and chief operating officer of M&T (2017) and president, chief operating officer and a director of M&T Bank (2017). Mr. Gold oversees the Consumer Banking, Business Banking, Legal and Human Resources Divisions. Previously, he was a senior executive vice president, chief risk officer and director of M&T and was a vice chairman and chief risk officer of M&T Bank. Mr. Gold had been responsible for overseeing the Company's governance and strategy for risk management, as well as relationships with key regulators and supervisory agencies. He is a senior executive vice president (2021) of Wilmington Trust, N.A. and Wilmington Trust Company. Mr. Gold had served as chairman, president and chief executive officer of Wilmington Trust, N.A., as a senior vice president of M&T Bank from 2000 to 2006 and has held a number of management positions since he began his career with M&T Bank in 1989. In June 2022 Mr. Gold announced his intention to retire effective after the first quarter of 2023, and his plans to remain a director of M&T Bank.

Kevin J. Pearson, age 61, is vice chairman (2020) of M&T and is vice chairman (2014) and a director (2018) of M&T Bank. Mr. Pearson has oversight of the Commercial Banking, Technology and Banking Operations, and Wealth and Institutional Services Divisions. Previously, Mr. Pearson served as a director of M&T, chairman of the board of Wilmington Trust Company and chairman of the board of Wilmington Trust, N.A. He also previously served as a senior executive vice president of M&T and M&T Bank and has held a number of management positions since he began his career with M&T Bank in 1989. Mr. Pearson is a director (2018) of Wilmington Trust Company, WT Investment Advisors, Wilmington Funds Management, and WTIM. He is a director (2014) of Wilmington Trust, N.A. and a director (2022) of PUA.

Robert J. Bojdak, age 67, is a senior executive vice president and chief credit officer (2004) of M&T and M&T Bank where he is responsible for managing the overall risk involving M&T Bank's loan portfolio, monitoring portfolio metrics and workout activities. He is a senior executive vice president (2004) of Wilmington Trust, N.A. and a senior executive vice president (2020) of Wilmington Trust Company. Mr. Bojdak joined M&T Bank in 2002 and previously served as senior vice president and credit deputy for M&T Bank and as a director of Wilmington Trust, N.A.

Peter G. D’Arcy, age 49, is a senior executive vice president (2022) of M&T and M&T Bank and is the head of Commercial Banking. In his current role, Mr. D’Arcy is responsible for directing strategic growth and business line development activities across M&T’s footprint for commercial clients. He is a director and chairman (2022) of M&T Realty Capital. Previously, Mr. D’Arcy served as an Area Executive, was co-head of M&T Bank’s Senior Loan Committee, and supervised M&T Bank’s commercial real estate segment, Capital Markets and Corporate and Institutional Banking Divisions. He began his career with M&T Bank in 1995.

Christopher E. Kay, age 57, is a senior executive vice president (2018) of M&T and M&T Bank, and is responsible for all aspects of Consumer Banking, including the Mortgage, Consumer Lending and Retail businesses. He is also responsible for Business Banking, Customer Experience, Digital, Strategy and Transformation, Marketing and Enterprise Platforms. Prior to joining M&T in 2018, Mr. Kay served as chief innovation officer at Humana from 2014 to 2018 and as managing director of Citi Ventures from 2007 to 2013.

Darren J. King, age 53, is a senior executive vice president (2010) and chief financial officer (2016) of M&T and senior executive vice president (2009) and chief financial officer (2016) of M&T Bank. Mr. King has responsibility for the overall financial management of the Company and oversees the Finance and Treasury Divisions. Prior to his current role, Mr. King was the Retail Banking executive with responsibility for overseeing Business Banking, Consumer Deposits, Consumer Lending and M&T Bank’s Marketing and Communications team. Mr. King previously served as senior

48

vice president of M&T Bank and has held a number of management positions within M&T Bank since 2000. Mr. King is a senior executive vice president (2009) and chief financial officer (2016) of Wilmington Trust, N.A.

Doris P. Meister, age 68, is a senior executive vice president (2016) of M&T and M&T Bank and is responsible for overseeing the Company's wealth management business, including Wilmington Trust Wealth Management, M&T Securities and WT Investment Advisors. Ms. Meister is the chair of the board, president and chief executive officer (2022) and a director (2016) of Wilmington Trust, N.A. and Wilmington Trust Company, and the chair of the board, chief executive officer and a director (2017) of WT Investment Advisors. She is a director (2017), chair of the board and chief executive officer (2018) of Wilmington Funds Management and WTIM. Ms. Meister is a director, chair of the board and chief executive officer (2022) of PUA. Ms. Meister joined Wilmington Trust N.A. in 2016 and has over four decades of financial and executive management experience.

Laura P. O'Hara, age 63, is a senior executive vice president (2020) and chief legal officer (2017) of M&T and M&T Bank. In this role, she oversees all of the Company's legal affairs, as well as the Office of the Corporate Secretary. Ms. O'Hara is a senior executive vice president (2020) and chief legal officer (2018) of Wilmington Trust, N.A., and senior executive vice president and chief legal officer (2020) of Wilmington Trust Company. She has almost 40 years of litigation, regulatory compliance and risk management experience, including time spent at Santander Bank, where she served as executive vice president and general counsel from 2015 until she joined M&T in 2017.

Michael J. Todaro, age 61, is a senior executive vice president (2015) and chief risk officer (2021) of M&T and M&T Bank where he is responsible for overseeing the Company's governance and strategy for risk management as well as relationships with the Company's regulators and supervisory agencies. He is a senior executive vice president (2015) and chief risk officer (2021) of Wilmington Trust, N.A., and is a senior executive vice president (2021) of Wilmington Trust Company. Mr. Todaro began his career with M&T in 1995, and previously served as senior vice president of M&T Bank and held a number of management positions within M&T Bank's Mortgage, Consumer Lending and Customer Asset Management Divisions. Most recently he was responsible for Enterprise Transformation activities.

Michele D. Trolli, age 61, is a senior executive vice president (2005) and head of corporate operations and enterprise initiatives (2018) of M&T and M&T Bank. Previously, she was chief information officer of M&T and M&T Bank. Ms. Trolli has led a wide range of the Company's Banking Operations, which includes Banking Services, Corporate Services, Business Continuity and Enterprise Transformation and Change Management and overseeing the Environmental, Social and Governance ('ESG') initiative. In December 2022 Ms. Trolli announced her plans to retire from M&T Bank effective in March of 2023.

Julianne Urban, age 50, is a senior executive vice president (2020) and chief auditor (2017) of M&T and M&T Bank. She is responsible for the audit division's strategic development and execution of assurance services. During her tenure, she has served as audit manager and audit director responsible for examining various business lines including Commercial Banking, Consumer Banking, Credit, Finance, Mortgage, Operations, Regulatory, Retail, Risk Management, and Treasury. Ms. Urban is a senior executive vice president (2020) and chief auditor (2018) of Wilmington Trust, N.A. and a senior executive vice president (2020) and chief auditor (2017) of Wilmington Trust Company.

D. Scott N. Warman, age 57, is a senior executive vice president (2009) and treasurer (2008) of M&T and M&T Bank. He is responsible for managing the Company's Treasury Division, including asset/liability management, funding, investment and derivative portfolio management, capital markets foreign exchange trading and sales. Mr. Warman previously served as senior vice president of M&T Bank and has held a number of management positions within M&T Bank since 1995. He is a senior executive vice president and treasurer of Wilmington Trust, N.A. (2008) and is a senior executive vice president and treasurer of Wilmington Trust Company (2012).

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Jennifer Warren, age 58, is a senior executive vice president (2022) of M&T and M&T Bank. Ms. Warren is responsible for managing administrative and business development functions of Institutional Client Services within the Wealth and Institutional Services Division. She is a senior executive vice president and director (2022) of Wilmington Trust, N.A. and Wilmington Trust Company. Ms. Warren is a director (2022) of Wilmington Funds Management, WTIM and PUA. Prior to joining the Company, Ms. Warren was chief executive officer of Issuer Services, North America for Computershare from 2018 to 2021. Ms. Warren previously served as head of the U.S. region and president and chief executive officer of CIBC World Markets Corp., where she worked for nearly 12 years.

Tracy S. Woodrow, age 49, is a senior executive vice president (2020), chief human resources officer (2020) and chief administrative officer (2023) of M&T and M&T Bank. Ms. Woodrow is responsible for managing the Company's Human Resources, Banking Services and Corporate Services Divisions, and leading the ESG initiative. She is a senior executive vice president (2015) of Wilmington Trust, N.A. and Wilmington Trust Company. Ms. Woodrow previously served as the Bank Secrecy Act / Anti-Money Laundering / Office of Foreign Assets Control Officer for M&T, M&T Bank and Wilmington Trust, N.A. upon joining M&T Bank in 2013.

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## PART II

### Item 5. *Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.*

M&T's common stock is traded under the symbol MTB on the New York Stock Exchange. See cross-reference sheet for disclosures incorporated elsewhere in this Annual Report on Form 10-K for approximate number of common shareholders at year-end, frequency and amounts of dividends on common stock and restrictions on the payment of dividends.

During the fourth quarter of 2022, M&T did not issue any shares of its common stock that were not registered under the Securities Act of 1933.

#### Equity Compensation Plan Information

The following table provides information as of December 31, 2022 with respect to shares of common stock that may be issued under M&T's existing equity compensation plans. M&T's existing equity compensation plans include the M&T Bank Corporation 2019 Equity Incentive Compensation Plan, which has been previously approved by shareholders and the M&T Bank Corporation Deferred Bonus Plan, which did not require shareholder approval.

The table does not include information with respect to shares of common stock subject to outstanding options and rights assumed by M&T in connection with mergers and acquisitions of the companies that originally granted those options and rights. Footnote (1) to the table sets forth the total number of shares of common stock issuable upon the exercise of such assumed options and rights as of December 31, 2022, and their weighted-average exercise price.

| Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options or Rights (A) | Weighted-Average Exercise Price of Outstanding Options or Rights (B) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column A) (C) |
| --- | --- | --- | --- |
| Equity compensation plans approved by security holders | 729,771 | $164.12 | 1,650,696 |
| Equity compensation plans not approved by security holders | 11,725 | 80.46 | - |
| Total | 741,496 | $162.79 | 1,650,696 |

(1) As of December 31, 2022, a total of 1,612,597 shares of M&T common stock were issuable upon exercise of outstanding options or rights assumed by M&T in connection with merger and acquisition transactions. The weighted-average exercise price of those outstanding options or rights is $139.36 per common share.

#### Deferred Bonus Plan

M&T maintains a deferred bonus plan which was frozen effective January 1, 2010 and did not allow any additional deferrals after that date. Prior to January 1, 2010, the plan allowed eligible officers of M&T and its subsidiaries to elect to defer all or a portion of their annual incentive compensation awards and allocate such awards to several investment options, including M&T common stock. At the time of the deferral election, participants also elected the timing of distributions from the plan. Such distributions are payable in cash, with the exception of balances allocated to M&T common stock which are distributable in the form of shares of common stock.

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## Performance Graph

The following graph contains a comparison of the cumulative shareholder return on M&T common stock against the cumulative total returns of the KBW Nasdaq Bank Index, compiled by Keefe, Bruyette & Woods, Inc., and the S&P 500 Index, compiled by Standard & Poor's Corporation, for the five-year period beginning on December 31, 2017 and ending on December 31, 2022. The KBW Nasdaq Bank Index is a modified market capitalization weighted index consisting of 25 banking stocks representing leading large U.S. national money centers, regional banks and thrift institutions.

### Comparison of Five-Year Cumulative Return\*

![img-0.jpeg](img-0.jpeg)

### Shareholder Value at Year End\*

|  | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| --- | --- | --- | --- | --- | --- | --- |
| M&T Bank Corporation | 100 | 85 | 104 | 81 | 101 | 98 |
| KBW Nasdaq Bank Index | 100 | 82 | 112 | 100 | 139 | 109 |
| S&P 500 Index | 100 | 96 | 126 | 149 | 192 | 157 |

\* Assumes a $100 investment on December 31, 2017 and reinvestment of all dividends.

In accordance with and to the extent permitted by applicable law or regulation, the information set forth above under the heading 'Performance Graph' shall not be incorporated by reference into any future filing under the Securities Act of 1933, as amended (the 'Securities Act'), or the Exchange Act and shall not be deemed to be 'soliciting material' or to be 'filed' with the SEC under the Securities Act or the Exchange Act.

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## Issuer Purchases of Equity Securities

During the fourth quarter of 2022, M&T purchased shares of its common stock as follows:

| Period | Issuer Purchases of Equity Securities |  |  |  |
| --- | --- | --- | --- | --- |
|  | (a) Total Number of Shares (or Units) Purchased (1) | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may yet be Purchased Under the Plans or Programs (2) |
| October 1 - October 31, 2022 | 211,886 | $169.42 | 200,000 | $2,366,318,142 |
| November 1 - November 30, 2022 | 2,125,262 | 167.80 | 2,125,000 | 2,009,747,682 |
| December 1 - December 31, 2022 | 1,340,649 | 156.55 | 1,339,887 | 1,800,000,226 |
| Total | 3,677,797 | $163.79 | 3,664,887 |  |

(1) The total number of shares purchased during the periods indicated includes shares purchased as part of publicly announced programs and shares deemed to have been received from employees who exercised stock options by attesting to previously acquired common shares in satisfaction of the exercise price or shares received from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations, as is permitted under M&T's stock-based compensation plans.
(2) In July 2022, M&T's Board of Directors authorized a program under which $3.0 billion of common shares may be repurchased with the exact number, timing, price and terms of such repurchases to be determined at the discretion of management and subject to all regulatory limitations. That authorization replaces the previous program.

### Item 6. Selected Financial Data [Reserved].

### Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

#### Corporate Profile and Significant Developments

M&T Bank Corporation ("M&T") is a bank holding company headquartered in Buffalo, New York with consolidated assets of $200.7 billion at December 31, 2022. The consolidated financial information presented herein reflects M&T and all of its subsidiaries, which are referred to collectively as "the Company." M&T's wholly owned bank subsidiaries are Manufacturers and Traders Trust Company ("M&T Bank") and Wilmington Trust, National Association ("Wilmington Trust, N.A."). Among other subsidiaries of M&T is M&T Securities, Inc. which provides institutional brokerage and securities services and had total assets of $49 million at December 31, 2022.

M&T Bank, with total assets of $200.3 billion at December 31, 2022, is a New York-chartered commercial bank with 1,010 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Massachusetts, Maine, Vermont, New Hampshire, Virginia, West Virginia, and the District of Columbia, and a full-service commercial banking office in Ontario, Canada. M&T Bank and its subsidiaries offer a broad range of financial services to a diverse base of consumers, businesses, professional clients, governmental entities and financial institutions located in their markets. M&T Bank lends to consumers residing in the states noted above and to small and medium-size businesses based in those areas, although loans are also originated through offices in other states and in Ontario, Canada. Certain lending activities are also conducted in other states through various subsidiaries. Trust and other fiduciary services are offered by M&T Bank and through its wholly owned subsidiary, Wilmington Trust Company. Other subsidiaries of M&T Bank include M&T Realty Capital Corporation, a multifamily commercial mortgage lender; Wilmington Trust Investment

53

Advisors, Inc., which serves as an investment advisor to the Wilmington Funds, a family of proprietary mutual funds, and other funds and institutional clients; and entities obtained in the People's United acquisition including LEAF Commercial Capital, Inc., M&T Capital and Leasing Corp. (formerly known as People's Capital and Leasing Corp.) and M&T Equipment Finance Corp. (formerly known as People's United Equipment Finance Corp.) that provide equipment leasing and financing services.

Wilmington Trust, N.A. is a national bank with total assets of $692 million at December 31, 2022. Wilmington Trust, N.A. and its subsidiaries offer various trust and wealth management services.

On April 1, 2022, M&T completed the acquisition of People's United Financial, Inc. ('People's United'). Through subsidiaries, People's United provided commercial banking, retail banking and wealth management services to individual, corporate and municipal customers through a network of branches located in Connecticut, southeastern New York, Massachusetts, Vermont, New Hampshire and Maine. Following the merger, People's United Bank, National Association, a national banking association and a wholly owned subsidiary of People's United, merged with and into M&T Bank with M&T Bank as the surviving entity. The results of operations acquired from People's United have been included in the Company's financial results since April 1, 2022.

In connection with the acquisition of People's United, M&T issued 50,325,004 common shares on April 1, 2022. Pursuant to the terms of the merger agreement, People's United shareholders received consideration valued at .118 of an M&T common share in exchange for each common share of People's United. The purchase price totaled approximately $8.4 billion (with the price based on M&T's closing price of $164.66 per share as of April 1, 2022). Additionally, People's United outstanding preferred stock was converted into new shares of Series H preferred stock of M&T.

The People's United transaction has been accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair value on the acquisition date. M&T preliminarily recorded assets acquired of $64.2 billion, including $35.8 billion of loans and leases and $11.6 billion of investment securities, and liabilities assumed totaling $55.5 billion, including $53.0 billion of deposits. The transaction added $8.4 billion to M&T's common shareholders' equity and $261 million to preferred equity. In connection with the acquisition the Company recorded $3.9 billion of goodwill and $261 million of core deposit and other intangible assets. The acquisition of People's United formed a banking franchise with approximately $200 billion in assets serving communities in the Northeast and Mid-Atlantic from Maine to Virginia, including Washington D.C.

Net acquisition and integration-related expenses (included herein as merger-related expenses) associated with the People's United acquisition totaled $432 million after tax-effect, or $2.63 of diluted earnings per common share in 2022, and $34 million after tax-effect, or $0.25 of diluted earnings per common share in 2021. M&T completed the transfer of most financial records of People's United to M&T's core operating systems in the third quarter of 2022. The Company does not expect any People's United merger-related expenses to be material during 2023.

On September 29, 2022 M&T Bank announced it had entered into a definitive agreement to sell M&T Insurance Agency, Inc. ('MTIA'), a wholly owned insurance agency subsidiary of M&T Bank to Arthur J. Gallagher & Co. The transaction was completed on October 31, 2022 and resulted in a pre-tax gain of $136 million. On December 19, 2022 Wilmington Trust, N.A. announced it had entered into an agreement to sell its Collective Investment Trust ('CIT') business to a private equity firm. That sale is expected to close in the first half of 2023 and result in recognition of a gain at that time.

### Critical Accounting Estimates

The Company's significant accounting policies conform with generally accepted accounting principles ('GAAP') and are described in note 1 of Notes to Financial Statements. In applying those accounting policies, management of the Company is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. Certain of the critical accounting estimates

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are more dependent on such judgment and in some cases may contribute to volatility in the Company's reported financial performance should the assumptions and estimates used change over time due to changes in circumstances. The more significant areas in which management of the Company applies critical assumptions and estimates include the following:

- Accounting for credit losses - Effective January 1, 2020 the Company adopted amended accounting guidance that impacts how the allowance for credit losses is determined. Under that accounting guidance, the allowance for credit losses represents a valuation account that is deducted from the amortized cost basis of certain financial assets, including loans and leases, to present the net amount expected to be collected at the balance sheet date. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. In estimating expected losses in the loan and lease portfolio, borrower-specific financial data and macro-economic assumptions are utilized to project losses over a reasonable and supportable forecast period. For certain loan pools that share similar risk characteristics, the Company utilizes statistically developed models to estimate amounts and timing of expected future cash flows, collateral values and other factors used to determine the borrowers' abilities to repay obligations. Such models consider historical correlations of credit losses with various macroeconomic assumptions including unemployment, gross domestic product and real estate prices. These forecasts may be adjusted for inherent limitations or biases of the models. Subsequent to the forecast period, the Company utilizes longer-term historical loss experience to estimate losses over the remaining contractual life of the loans. Changes in the circumstances considered when determining management's estimates and assumptions could result in changes in those estimates and assumptions, which could result in adjustment of the allowance for credit losses in future periods. A discussion of facts and circumstances considered by management in determining the allowance for credit losses is included herein under the heading "Provision for Credit Losses" and in note 5 of Notes to Financial Statements. Prior to 2020, the allowance for credit losses represented the amount that in management's judgment reflected incurred credit losses inherent in the loan and lease portfolio as of the balance sheet date. The estimation of the allowance for credit losses prior to 2020 did not consider reasonable and supportable forecasts that could have affected the collectability of the reported amounts.
- Valuation methodologies - Management of the Company applies various valuation methodologies to assets and liabilities which often involve a significant degree of judgment, particularly when liquid markets do not exist for the particular items being valued. Quoted market prices are referred to when estimating fair values for certain assets, such as investment securities and residential real estate loans held for sale and related commitments. However, for those items for which an observable liquid market does not exist, management utilizes significant estimates and assumptions to value such items. Examples of these items include loans, deposits, borrowings, goodwill, core deposit and other intangible assets, other assets and liabilities obtained or assumed in business combinations, capitalized servicing assets, pension and other postretirement benefit obligations, estimated residual values of property associated with leases, and certain derivative and other financial instruments. These valuations require the use of various assumptions, including, among others, discount rates, rates of return on assets, repayment rates, cash flows, default rates, costs of servicing and liquidation values. The use of different assumptions could produce significantly different results, which could have material positive or negative effects on the Company's results of operations, financial condition or disclosures of fair value information. In addition to valuation, the Company must assess whether there are any declines in value below the carrying value of assets that require recognition of a loss in the consolidated statement of income. Examples include certain investments, capitalized servicing assets, goodwill and core deposit and other intangible assets, among others. Specific assumptions and estimates

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utilized by management are discussed in detail herein in management’s discussion and analysis of financial condition and results of operations and in notes 1, 3, 4, 7, 8, 13, 19, 20 and 21 of Notes to Financial Statements.

- Commitments, contingencies and off-balance sheet arrangements - Information regarding the Company’s commitments and contingencies, including guarantees and contingent liabilities arising from litigation, and their potential effects on the Company’s results of operations is included in note 22 of Notes to Financial Statements. In addition, the Company is routinely subject to examinations from various governmental taxing authorities. Such examinations may result in challenges to the tax return treatment applied by the Company to specific transactions. Management believes that the assumptions and judgment used to record tax-related assets or liabilities have been appropriate. Should tax laws change or the tax authorities determine that management’s assumptions were inappropriate, the result and adjustments required could have a material effect on the Company’s results of operations. Information regarding the Company’s income taxes is presented in note 14 of Notes to Financial Statements. The recognition or de-recognition in the Company’s consolidated financial statements of assets and liabilities held by so-called variable interest entities is subject to the interpretation and application of complex accounting pronouncements or interpretations that require management to estimate and assess the relative significance of the Company’s financial interests in those entities and the degree to which the Company can influence the most important activities of the entities. Information relating to the Company’s involvement in such entities and the accounting treatment afforded each such involvement is included in note 20 of Notes to Financial Statements.

## Overview

During 2022 the Federal Reserve took steps to address rising inflation, including several increases in the target Federal funds rate totaling 4.25%. Those actions have led to an expansion of the Company’s net interest margin, or taxable-equivalent net interest income expressed as a percentage of average earning assets. A higher level of earning assets associated with the People’s United acquisition and the expanded net interest margin have increased taxable-equivalent net interest income in 2022 as compared with 2021 and 2020. The Company’s estimates of expected credit losses at December 31, 2022 reflected risks including inflation, a projected rise in unemployment, reduction of economic growth projections, decreasing residential real estate values as compared with December 31, 2021 and continued concerns about commercial real estate values in the hospitality and office building sectors. The Company recognized a $136 million gain on the sale of MTIA in the fourth quarter of 2022. Also during the fourth quarter of 2022, the Company made a $135 million tax-deductible contribution to The M&T Charitable Foundation.

Net income recorded by the Company in 2022 was $1.99 billion or $11.53 of diluted earnings per common share, compared with $1.86 billion or $13.80 of diluted earnings per common share in 2021. Basic earnings per common share were $11.59 in 2022 and $13.81 in 2021. In connection with M&T’s acquisition of People’s United, the after-tax impact of merger-related expenses was $432 million ($580 million pre-tax), or $2.63 of diluted earnings per common share in 2022, compared with $34 million ($44 million pre-tax), or $0.25 of diluted earnings per common share in 2021. Merger-related expenses largely consisted of professional services, temporary help fees and other costs associated with actual or planned conversions of systems and/or integration of operations and the introduction of the Company to its new customers, costs related to terminations of existing contractual arrangements to purchase various services, severance, travel costs, and, in the second quarter of 2022, an initial provision for credit losses on loans not deemed to be purchased credit deteriorated (“PCD”) on the April 1, 2022 acquisition date of People’s United. GAAP requires that acquired loans be recorded at estimated fair value, which includes the use of interest rate and expected credit loss assumptions to forecast estimated cash flows. GAAP also provides that an allowance for credit losses on loans

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acquired, but not classified as PCD also be recognized. Given the requirement to recognize such losses above and beyond the impact of forecasted losses used in determining the fair value of acquired loans, M&T considers that initial provision to be a merger-related expense. There were no merger-related expenses during 2020. Net income in 2020 totaled $1.35 billion, while diluted and basic earnings per common share were each $9.94. Expressed as a rate of return on average assets, net income in 2022 was 1.05%, compared with 1.22% in 2021 and 1.00% in 2020. The return on average common shareholders' equity was 8.67% in 2022, 11.54% in 2021 and 8.72% in 2020.

**Table 1**

# **EARNINGS SUMMARY**  
*Dollars in millions*

| Increase (Decrease) (a) |  | 2021 to 2022 |  |  | 2022 | 2021 | 2020 | 2019 | 2018 | Compound Growth Rate 5 Years 2017 to 2022 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Amount | % | Amount | % |  |  |  |  |  |  |  |
| $2,332.8 | 59 | $(256.5) | (6) | Interest income (b) | $6,286.3 | $3,953.5 | $4,210.0 | $4,902.4 | $4,620.6 | 8% |
| 311.2 | 273 | (212.4) | (65) | Interest expense | 425.2 | 114.0 | 326.4 | 749.3 | 526.4 | 2 |
| 2,021.6 | 53 | (44.1) | (1) | Net interest income (b) | 5,861.1 | 3,839.5 | 3,883.6 | 4,153.1 | 4,094.2 | 9 |
| 592.0 | - | (875.0) | (109) | Less: provision for credit losses | 517.0 | (75.0) | 800.0 | 176.0 | 132.0 | 25 |
| 15.5 | - | (11.8) | - | Gain (loss) on bank investment securities | (5.7) | (21.2) | (9.4) | 18.0 | (6.3) | - |
| 174.1 | 8 | 90.3 | 4 | Other income | 2,362.3 | 2,188.2 | 2,097.9 | 2,043.7 | 1,862.3 | 5 |
| 741.7 | 36 | 95.0 | 5 | Less: |  |  |  |  |  |  |
| 697.1 | 45 | 131.4 | 9 | Salaries and employee benefits | 2,787.4 | 2,045.7 | 1,950.7 | 1,900.8 | 1,752.3 | 11 |
| 180.4 | 7 | 683.0 | 38 | Other expense | 2,263.0 | 1,565.9 | 1,434.5 | 1,567.9 | 1,535.8 | 9 |
|  |  |  |  | Income before income taxes | 2,650.3 | 2,469.9 | 1,786.9 | 2,570.1 | 2,530.1 | 2 |
| 24.4 | 166 | (2.6) | (15) | Less: |  |  |  |  |  |  |
| 23.1 | 4 | 180.0 | 43 | Taxable-equivalent adjustment(b) | 39.1 | 14.7 | 17.3 | 22.9 | 21.9 | 3 |
| $132.9 | 7 | $505.6 | 37 | Income taxes | 619.5 | 596.4 | 416.4 | 618.1 | 590.1 | (8) |
|  |  |  |  | Net income | $1,991.7 | $1,858.8 | $1,353.2 | $1,929.1 | $1,918.1 | 7% |

(a) Changes were calculated from unrounded amounts.

(b) Interest income data are on a taxable-equivalent basis. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on a composite income tax rate of approximately 26%.

The financial results associated with the acquired operations of People's United have been included in the Company's consolidated statement of income since April 1, 2022. Reflecting earning assets obtained in the acquisition of People's United and an expanded net interest margin the Company's taxable-equivalent net interest income increased by 53% to $5.86 billion in 2022 from $3.84 billion in 2021. That increase includes the impact of a 63 basis point (hundredths of one percent) widening of the net interest margin to 3.39% in 2022 from 2.76% in 2021 and a growth in average earning assets to $172.8 billion in 2022 from $139.1 billion in 2021. That growth includes increases in average loans and investment securities of $22.7 billion and $13.5 billion, respectively. Earning assets of People's United totaled $56.6 billion on April 1, 2022 and included loans and investment securities of $35.8 billion and $11.6 billion, respectively. Taxable-equivalent net interest income was $3.88 billion in 2020. The decrease in 2021 as compared with 2020 resulted from a 40 basis point narrowing of the net interest margin from 3.16% in 2020, partially offset by the impact of an increase in average earning assets from $122.9 billion in 2020 that reflected higher balances of amounts held at the Federal Reserve Bank ('FRB') of New York.

The provision for credit losses was $517 million in 2022 reflecting the $242 million People's United-related provision for non-PCD loans acquired in the acquisition and a forecasted weakening of macroeconomic conditions as of December 31, 2022, as compared with forecasts in 2021 during which a recapture of previously recorded provisions of $75 million was recorded. The provision in 2020 was $800 million. Net charge-offs in 2022, 2021 and 2020 were $160 million, $192 million and $247 million, respectively.

Other income totaled $2.36 billion in 2022, $2.17 billion in 2021 and $2.09 billion in 2020. Comparing the recent year with 2021, acquired operations associated with the People's United

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acquisition (predominantly reflected in trust income, service charges on deposit accounts and other revenues from operations, including credit-related fees), higher trust income from legacy operations and the $136 million gain on sale of MTIA were most impactful to the higher levels of noninterest income in 2022. Those increases were partially offset by lower mortgage banking revenues reflecting the Company's decision late in the third quarter of 2021 to retain the substantial majority of recently originated mortgage loans in portfolio rather than sell such loans, and a planned reduction of insufficient funds fees reflected in service charges on deposit accounts. As compared with 2020, higher amounts of trust income, service charges on deposit accounts, and brokerage services income in 2021 were partially offset by lower trading account and non-hedging derivative gains, a higher loss on bank investment securities and less in distributions from Bayview Lending Group LLC ('BLG').

Other expense totaled $5.05 billion in 2022, compared with $3.61 billion in 2021 and $3.39 billion in 2020. Included in those amounts are expenses considered by M&T to be 'nonoperating' in nature, consisting of amortization of core deposit and other intangible assets of $56 million, $10 million and $15 million in 2022, 2021 and 2020, respectively, and merger-related expenses of $338 million and $44 million in 2022 and 2021, respectively. No merger-related expenses were recorded in 2020. Exclusive of those nonoperating expenses, noninterest operating expenses totaled $4.66 billion in 2022, compared with $3.56 billion in 2021 and $3.37 billion in 2020. Acquired operations from People's United were the predominant factor for increased noninterest operating expenses in 2022. In addition to the People's United acquisition, factors contributing to the higher level of expenses included higher costs for salaries and employee benefits, outside data processing and software, equipment and net occupancy and professional services expenses, and (in the fourth quarter of 2022) a contribution to The M&T Charitable Foundation. Those higher expenses were partially offset by lower defined benefit pension-related expenses included in other costs of operations. The higher level of such expenses in 2021 as compared with 2020 was due to increased costs for salaries and employee benefits, outside data processing and software, FDIC assessments, and professional services.

The efficiency ratio measures the relationship of noninterest operating expenses to revenues. The Company's efficiency ratio, or noninterest operating expenses (as previously defined) divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), was 56.6% in 2022, compared with 59.0% and 56.3% in 2021 and 2020, respectively. The calculations of the efficiency ratio are presented in table 2.

The Company's effective tax rate was 23.7% in 2022, compared with 24.3% and 23.5% in 2021 and 2020, respectively.

Under approved capital plans and programs authorized by M&T's Board of Directors, M&T repurchased a total of 10,453,282 shares of M&T's common stock in 2022 at an average cost per share of $172.19 resulting in a total cost of $1.8 billion. M&T repurchased 2,577,000 common shares for $374 million in 2020. No common shares were repurchased in 2021.

### **Supplemental Reporting of Non-GAAP Results of Operations**

As a result of business combinations and other acquisitions, the Company had intangible assets consisting of goodwill and core deposit and other intangible assets totaling $8.7 billion at December 31, 2022 and $4.6 billion at each of December 31, 2021 and 2020, consisting predominantly of goodwill. Amortization of core deposit and other intangible assets, after-tax effect, totaled $43 million, $8 million and $11 million during 2022, 2021 and 2020, respectively.

M&T consistently provides supplemental reporting of its results on a 'net operating' or 'tangible' basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and expenses (when incurred) associated with merging acquired or to be acquired operations with and into the Company, since such items are considered by management to be 'nonoperating' in nature. In 2022 and 2021, those merger-related

58

expenses generally consisted of professional services, temporary help fees and other costs associated with actual or planned conversions of systems and/or integration of operations and the introduction of M&T to its new customers; costs related to terminations of existing contractual arrangements to purchase various services; severance; travel costs; legal expenses; printing costs associated with communications with shareholders and customers; and in the second quarter of 2022, an initial provision for credit losses on loans not deemed to be PCD on April 1, 2022. Such expenses totaled $580 million ($432 million after-tax) in 2022 and $44 million ($34 million after-tax) in 2021. There were no merger-related expenses in 2020. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

Net operating income was $2.47 billion in 2022, $1.90 billion in 2021, and $1.36 billion in 2020. Diluted net operating earnings per common share were $14.42 in 2022, $14.11 in 2021 and $10.02 in 2020.

Net operating income expressed as a rate of return on average tangible assets was 1.35% in 2022, compared with 1.28% in 2021 and 1.04% in 2020. Net operating income represented a return on average tangible common equity of 16.70% in 2022, compared with 16.80% in 2021 and 12.79% in 2020.

Reconciliations of GAAP amounts with corresponding non-GAAP amounts are presented in table 2.

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Table 2

# RECONCILIATION OF GAAP TO NON-GAAP MEASURES

|  | 2022 | 2021 | 2020 |
| --- | --- | --- | --- |
| Income statement data |  |  |  |
| Dollars in thousands, except per share |  |  |  |
| Net income |  |  |  |
| Net income | $1,991,663 | $1,858,746 | $1,353,152 |
| Amortization of core deposit and other intangible assets (a) | 42,771 | 7,532 | 10,993 |
| Merger-related expenses (a) | 431,576 | 33,560 | - |
| Net operating income | $2,466,010 | $1,899,838 | $1,364,145 |
| Earnings per common share |  |  |  |
| Diluted earnings per common share | $11.53 | $13.80 | $9.94 |
| Amortization of core deposit and other intangible assets (a) | .26 | .06 | .08 |
| Merger-related expenses (a) | 2.63 | .25 | - |
| Diluted net operating earnings per common share | $14.42 | $14.11 | $10.02 |
| Other expense |  |  |  |
| Other expense | $5,050,436 | $3,611,623 | $3,385,240 |
| Amortization of core deposit and other intangible assets | (55,624) | (10,167) | (14,869) |
| Merger-related expenses | (338,321) | (43,860) | - |
| Noninterest operating expense | $4,656,491 | $3,557,596 | $3,370,371 |
| Merger-related expenses |  |  |  |
| Salaries and employee benefits | $102,150 | $176 | $ - |
| Equipment and net occupancy | 6,709 | 341 | - |
| Outside data processing and software | 5,438 | 1,119 | - |
| Advertising and marketing | 9,262 | 866 | - |
| Printing, postage and supplies | 6,786 | 2,965 | - |
| Other costs of operations | 207,976 | 38,393 | - |
| Other expense | 338,321 | 43,860 | - |
| Provision for credit losses | 242,000 | - | - |
| Total | $580,321 | $43,860 | $ - |
| Efficiency ratio |  |  |  |
| Noninterest operating expense (numerator) | $4,656,491 | $3,557,596 | $3,370,371 |
| Taxable-equivalent net interest income | $5,861,128 | $3,839,509 | $3,883,605 |
| Other income | 2,356,603 | 2,166,994 | 2,088,444 |
| Less: Gain (loss) on bank investment securities | (5,686) | (21,220) | (9,421) |
| Denominator | $8,223,417 | $6,027,723 | $5,981,470 |
| Efficiency ratio | 56.6% | 59.0% | 56.3% |
| Balance sheet data |  |  |  |
| In millions |  |  |  |
| Average assets |  |  |  |
| Average assets | $190,252 | $152,669 | $135,480 |
| Goodwill | (7,537) | (4,593) | (4,593) |
| Core deposit and other intangible assets | (179) | (8) | (21) |
| Deferred taxes | 43 | 2 | 5 |
| Average tangible assets | $182,579 | $148,070 | $130,871 |
| Average common equity |  |  |  |
| Average total equity | $23,810 | $16,909 | $15,991 |
| Preferred stock | (1,946) | (1,438) | (1,250) |
| Average common equity | 21,864 | 15,471 | 14,741 |
| Goodwill | (7,537) | (4,593) | (4,593) |
| Core deposit and other intangible assets | (179) | (8) | (21) |
| Deferred taxes | 43 | 2 | 5 |
| Average tangible common equity | $14,191 | $10,872 | $10,132 |
| At end of year |  |  |  |
| Total assets |  |  |  |
| Total assets | $200,730 | $155,107 | $142,601 |
| Goodwill | (8,490) | (4,593) | (4,593) |
| Core deposit and other intangible assets | (209) | (4) | (14) |
| Deferred taxes | 51 | 1 | 4 |
| Total tangible assets | $192,082 | $150,511 | $137,998 |
| Total common equity |  |  |  |
| Total equity | $25,318 | $17,903 | $16,187 |
| Preferred stock | (2,011) | (1,750) | (1,250) |
| Common equity | 23,307 | 16,153 | 14,937 |
| Goodwill | (8,490) | (4,593) | (4,593) |
| Core deposit and other intangible assets | (209) | (4) | (14) |
| Deferred taxes | 51 | 1 | 4 |
| Total tangible common equity | $14,659 | $11,557 | $10,334 |

(a) After any related tax effect.

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### **Net Interest Income/Lending and Funding Activities**

Taxable-equivalent net interest income was $5.86 billion in 2022, a 53% increase from $3.84 billion in 2021. That increase reflects the impact of $33.7 billion in additional average earning assets, predominantly resulting from the People's United transaction, and a 63 basis point widening of the net interest margin to 3.39% in 2022 from 2.76% in 2021. The higher net interest margin in 2022 is generally reflective of a rising interest rate environment resulting from actions taken by the Federal Reserve to temper inflationary pressures on the U.S. economy. The Federal Reserve raised its target Federal funds rate through multiple hikes that totaled 4.25% during 2022.

Average earnings assets were $172.8 billion in 2022 and $139.1 billion in 2021. Average loans and leases were $119.3 billion in 2022, up from $96.6 billion in 2021. Included in average loans and leases in the recent year were loans obtained in the People's United acquisition. Loans acquired from People's United totaled $35.8 billion on the April 1, 2022 acquisition date and consisted of approximately $13.6 billion of commercial loans and leases, $13.5 billion of commercial real estate loans, $7.1 billion of residential real estate loans and $1.6 billion of consumer loans. Including the three quarter impact of the acquired loan balances, average balances of commercial loans and leases increased $9.7 billion or 39% to $34.9 billion in 2022 from $25.2 billion in 2021. Partially offsetting the increase from acquired loans was a reduction in average balances of Paycheck Protection Program ('PPP') loans, reflecting loan repayments by the Small Business Administration. PPP loans averaged $446 million in 2022 compared with $4.1 billion in 2021. Average commercial real estate loan balances were up $6.3 billion or 17% to $43.6 billion in 2022 from $37.3 billion in 2021. That increase was predominantly due to the impact of loans obtained in the acquisition of People's United partially offset by a reduction in average balances of legacy construction and permanent mortgage loans, reflecting repayments by customers. Consumer loans averaged $19.5 billion in 2022, an increase of $2.2 billion or 13% from $17.3 billion in 2021, reflecting the impact of loans obtained in the acquisition of People's United (that consisted predominantly of outstanding balances of home equity lines of credit) and growth in average recreational finance loans (consisting predominantly of loans secured by recreational vehicles and boats). Average residential real estate loans were $21.3 billion and $16.8 billion in 2022 and 2021, respectively. The growth in residential real estate loans was largely attributable to the acquisition of loans from People's United and the Company's decision in the third quarter of 2021 to retain rather than sell most originated residential mortgage loans. Partially offsetting those increases was the impact of ongoing repayments of loans by customers.

Net interest income expressed on a taxable-equivalent basis aggregated $3.84 billion in 2021, compared with $3.88 billion in 2020. The decrease in 2021 was primarily attributable to a 40 basis point narrowing of the net interest margin to 2.76% in 2021 from 3.16% in 2020 reflecting lower yields on loans offset, in part, by lower rates paid on deposits, and reduced balances of investment securities. Those net impacts were partially offset by increased deposits held at the FRB of New York that served to increase net interest income, but, due to their low yield, reduced the reported net interest margin.

Average earnings assets were $139.1 billion and $122.9 billion in 2021 and 2020, respectively. Average loans and leases were $96.6 billion in each of 2021 and 2020. Average balances of commercial loans and leases decreased $2.3 billion or 8% to $25.2 billion in 2021 from $27.5 billion in 2020. That decrease was largely the result of a decline in average balances of PPP loans due to loan forgiveness by the SBA, lower dealer floor plan balances reflecting automobile production and inventory issues experienced by the industry and subdued loan demand by commercial customers, in general. PPP loans averaged $4.1 billion in 2021 compared with $4.4 billion in 2020. Average commercial real estate loan balances were up $336 million or 1% to $37.3 billion in 2021 from $37.0 billion in 2020. Consumer loans averaged $17.3 billion in 2021, an increase of $1.4 billion or 9% from $15.9 billion in 2020, due to growth in recreational finance loans and, to a lesser extent, automobile loans that was partially offset by declines in average outstanding balances of home equity loans and lines of credit. Average residential real estate loans were $16.8 billion and $16.2 billion in 2021 and 2020, respectively,

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reflecting repurchases of government-guaranteed loans from Ginnie Mae pools that are serviced by the Company. The Company repurchased government-guaranteed loans to reduce associated servicing costs, namely a requirement to advance principal and interest payments that had not been received from individual mortgagors. The loans repurchased from Ginnie Mae pools averaged $3.3 billion in 2021 and $2.6 billion in 2020. Additionally, late in the third quarter of 2021, the Company began to retain recently originated residential mortgage loans in portfolio rather than sell such loans. Those increases were offset by the ongoing repayments of loans by customers.

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Table 3

# AVERAGE BALANCE SHEETS AND TAXABLE-EQUIVALENT RATES

|  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  | Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate | Average Balance | Interest | Rate |
| (Average balance in millions of dollars; interest in thousands of dollars) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Earning assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Loans and leases, net of unearned discount (a) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Commercial, financial, etc. | $34,926 | $1,633,157 | 4.68% | 25,191 | 902,958 | 3.58% | 27,520 | 941,419 | 3.42% | 23,306 | 1,118,850 | 4.80% | 21,832 | 1,003,462 | 4.60% |
| Real estate - commercial | 43,576 | 1,921,209 | 4.35 | 37,321 | 1,498,089 | 3.96 | 36,986 | 1,651,448 | 4.39 | 34,885 | 1,842,472 | 5.21 | 33,682 | 1,712,247 | 5.01 |
| Real estate - consumer | 21,257 | 796,936 | 3.75 | 16,770 | 595,496 | 3.55 | 16,215 | 618,597 | 3.82 | 16,665 | 708,555 | 4.25 | 18,330 | 766,552 | 4.18 |
| Consumer | 19,538 | 908,368 | 4.65 | 17,331 | 767,167 | 4.43 | 15,884 | 780,803 | 4.92 | 14,638 | 794,913 | 5.43 | 13,555 | 703,919 | 5.19 |
| Total loans and leases, net | 119,297 | 5,259,670 | 4.41 | 96,613 | 3,763,710 | 3.90 | 96,605 | 3,992,267 | 4.13 | 89,494 | 4,464,790 | 4.99 | 87,399 | 4,186,180 | 4.79 |
| Interest-bearing deposits at banks | 33,435 | 509,030 | 1.52 | 35,829 | 47,491 | .13 | 15,329 | 32,956 | .21 | 6,783 | 141,397 | 2.08 | 5,614 | 108,182 | 1.93 |
| Federal funds sold and agreements to resell securities | 70 | 298 | .43 | 167 | 202 | .12 | 2,717 | 6,985 | .26 | 327 | 5,507 | 1.68 | 1 | 23 | 1.95 |
| Trading account | 109 | 1,628 | 1.49 | 50 | 941 | 1.89 | 53 | 1,111 | 2.10 | 68 | 1,842 | 2.72 | 58 | 1,479 | 2.55 |
| Investment securities (b) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| U.S. Treasury and federal agencies | 16,933 | 410,065 | 2.42 | 5,736 | 128,593 | 2.24 | 7,454 | 164,263 | 2.20 | 10,755 | 261,351 | 2.43 | 12,915 | 299,543 | 2.32 |
| Obligations of states and political subdivisions | 2,025 | 71,201 | 3.52 | 1 | 30 | 5.87 | 3 | 125 | 4.98 | 7 | 298 | 4.48 | 16 | 747 | 4.58 |
| Other | 939 | 34,400 | 3.66 | 672 | 12,548 | 1.87 | 708 | 12,293 | 1.74 | 788 | 27,272 | 3.46 | 763 | 24,454 | 3.21 |
| Total investment securities | 19,897 | 515,666 | 2.59 | 6,409 | 141,171 | 2.20 | 8,165 | 176,681 | 2.16 | 11,550 | 288,921 | 2.50 | 13,694 | 324,744 | 2.37 |
| Total earning assets | 172,808 | 6,286,292 | 3.64 | 139,068 | 3,953,515 | 2.84 | 122,869 | 4,210,000 | 3.43 | 108,222 | 4,902,457 | 4.53 | 106,766 | 4,620,608 | 4.33 |
| Allowance for credit losses | (1,751) |  |  | (1,620) |  |  | (1,503) |  |  | (1,030) |  |  | (1,019) |  |  |
| Cash and due from banks | 1,776 |  |  | 1,446 |  |  | 1,327 |  |  | 1,294 |  |  | 1,312 |  |  |
| Other assets | 17,419 |  |  | 13,775 |  |  | 12,787 |  |  | 11,098 |  |  | 9,900 |  |  |
| Total assets | $190,252 |  |  | 152,669 |  |  | 135,480 |  |  | 119,584 |  |  | 116,959 |  |  |
| Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Interest-bearing deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Savings and interest-checking deposits | $84,753 | 270,765 | .32 | 70,879 | 32,998 | .05 | 63,590 | 146,700 | .23 | 54,610 | 368,004 | .67 | 52,102 | 215,411 | .41 |
| Time deposits | 4,850 | 23,867 | .49 | 3,263 | 18,635 | .57 | 4,960 | 66,280 | 1.34 | 6,309 | 95,426 | 1.51 | 6,025 | 51,423 | .85 |
| Deposits at Cayman Islands office | - | - | - | 181 | 201 | .11 | 1,117 | 4,054 | .36 | 1,367 | 21,917 | 1.60 | 394 | 5,633 | 1.43 |
| Total interest-bearing deposits | 89,603 | 294,632 | .33 | 74,323 | 51,834 | .07 | 69,667 | 217,034 | .31 | 62,286 | 485,347 | .78 | 58,521 | 272,467 | .47 |
| Short-term borrowings | 936 | 19,426 | 2.08 | 68 | 7 | .01 | 62 | 28 | .05 | 1,059 | 24,741 | 2.34 | 331 | 5,386 | 1.63 |
| Long-term borrowings | 3,440 | 111,106 | 3.23 | 3,537 | 62,165 | 1.76 | 5,803 | 109,333 | 1.88 | 7,703 | 239,242 | 3.11 | 8,845 | 248,556 | 2.81 |
| Total interest-bearing liabilities | 93,979 | 425,164 | .45 | 77,928 | 114,006 | .14 | 75,532 | 326,395 | .43 | 71,048 | 749,330 | 1.05 | 67,607 | 526,409 | .78 |
| Noninterest-bearing deposits | 68,888 |  |  | 55,666 |  |  | 41,683 |  |  | 30,763 |  |  | 31,893 |  |  |
| Other liabilities | 3,575 |  |  | 2,166 |  |  | 2,274 |  |  | 2,055 |  |  | 1,739 |  |  |
| Total liabilities | 166,442 |  |  | 135,760 |  |  | 119,489 |  |  | 103,866 |  |  | 101,329 |  |  |
| Shareholders' equity | 23,810 |  |  | 16,909 |  |  | 15,991 |  |  | 15,718 |  |  | 15,630 |  |  |
| Total liabilities and shareholders' equity | $190,252 |  |  | 152,669 |  |  | 135,480 |  |  | 119,584 |  |  | 116,959 |  |  |
| Net interest spread | - | - | 3.19 | - | - | 2.70 | - | - | 3.00 | - | - | 3.48 | - | - | 3.55 |
| Contribution of interest-free funds | - | - | .20 | - | - | .06 | - | - | .16 | - | - | .36 | - | - | .28 |
| Net interest income/margin on earning assets | $5,861,128 |  | 3.39% | 3,839,509 |  | 2.76% | 3,883,605 |  | 3.16% | 4,153,127 |  | 3.84% | 4,094,199 |  | 3.83% |

(a) Includes nonaccrual loans.

(b) Includes available-for-sale investment securities at amortized cost.

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Table 4 summarizes average loans and leases outstanding in 2022 and percentage changes in the major components of the portfolio over the past two years.

**Table 4**

# **AVERAGE LOANS AND LEASES**  
**(Net of unearned discount)**

|  | 2022 (In millions) | Percent Increase (Decrease) from |  |
| --- | --- | --- | --- |
|  |  | 2021 to 2022 | 2020 to 2021 |
| Commercial, financial, etc. | $34,926 | 39% | (8)% |
| Real estate - commercial | 43,576 | 17 | 1 |
| Real estate - consumer | 21,257 | 27 | 3 |
| Consumer |  |  |  |
| Recreational finance | 8,500 | 11 | 21 |
| Automobile | 4,527 | 2 | 14 |
| Home equity lines and loans | 4,669 | 25 | (12) |
| Other | 1,842 | 25 | 5 |
| Total consumer | 19,538 | 13 | 9 |
| Total | $119,297 | 23% | - % |

Commercial loans and leases, excluding loans secured by real estate, totaled $41.9 billion at December 31, 2022, representing 32% of total loans and leases. Table 5 presents information on commercial loans and leases as of December 31, 2022 relating to geographic area, size, borrower industry and whether the loans are secured by collateral or unsecured. Of the $41.9 billion of commercial loans and leases outstanding at the end of 2022, approximately $37.8 billion, or 90%, were secured, while 25%, 33% and 13% were granted to businesses in New York State, the Mid-Atlantic area (which includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia and the District of Columbia) and the New England area (which includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont), respectively. The Company provides financing for leases to commercial customers, primarily for equipment. Commercial leases included in total commercial loans and leases at December 31, 2022 aggregated $2.4 billion, of which 23% were secured by collateral located in New York State, 24% were secured by collateral in the Mid-Atlantic area and 5% were secured by collateral in New England. The Company acquired $1.3 billion of commercial leases on April 1, 2022 as a result of the People's United transaction.

International loans included in commercial loans and leases totaled $241 million and $116 million at December 31, 2022 and 2021, respectively. Included in such amounts were $227 million and $94 million of loans, respectively, at M&T Bank’s commercial banking office in Ontario, Canada. The remaining international loans were predominantly to domestic companies with foreign operations.

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**Table 5**

# **COMMERCIAL LOANS AND LEASES, NET OF UNEARNED DISCOUNT**  
(Excludes Loans Secured by Real Estate)

**December 31, 2022**

|  | New York | Mid-Atlantic (a) | New England (b) | Other | Total | Percent of Total |
| --- | --- | --- | --- | --- | --- | --- |
|  | (Dollars in millions) |  |  |  |  |  |
| Financial and insurance | $2,379 | $1,511 | $532 | $3,006 | $7,428 | 18% |
| Services | 1,416 | 2,547 | 1,179 | 1,352 | 6,494 | 16% |
| Manufacturing | 1,470 | 1,929 | 873 | 1,252 | 5,524 | 13% |
| Motor vehicle and recreational finance dealers | 1,065 | 1,372 | 505 | 1,855 | 4,797 | 11% |
| Wholesale | 937 | 1,762 | 841 | 600 | 4,140 | 10% |
| Transportation, communications, utilities | 359 | 819 | 478 | 1,422 | 3,078 | 7% |
| Retail | 568 | 978 | 234 | 745 | 2,525 | 6% |
| Construction | 532 | 921 | 211 | 660 | 2,324 | 6% |
| Health services | 639 | 698 | 343 | 292 | 1,972 | 5% |
| Real estate investors | 751 | 691 | 81 | 359 | 1,882 | 4% |
| Public administration | 156 | 92 | 83 | - | 331 | 1% |
| Agriculture, forestry, fishing, etc. | 25 | 90 | 38 | 10 | 163 | - |
| Other | 255 | 275 | 62 | 600 | 1,192 | 3% |
| Total | $10,552 | $13,685 | $5,460 | $12,153 | $41,850 | 100% |
| Percent of total | 25% | 33% | 13% | 29% | 100% |  |
| Percent of dollars outstanding |  |  |  |  |  |  |
| Secured | 78% | 86% | 91% | 86% | 84% |  |
| Unsecured | 17 | 10 | 7 | 5 | 10 |  |
| Leases | 5 | 4 | 2 | 9 | 6 |  |
| Total | 100% | 100% | 100% | 100% | 100% |  |
| Percent of dollars outstanding by size of loan |  |  |  |  |  |  |
| Less than $1 million | 22% | 21% | 17% | 32% | 24% |  |
| $1 million to $10 million | 36 | 32 | 38 | 22 | 31 |  |
| $10 million to $30 million | 21 | 23 | 32 | 18 | 22 |  |
| $30 million to $50 million | 9 | 12 | 11 | 8 | 10 |  |
| $50 million to $100 million | 4 | 8 | 2 | 14 | 8 |  |
| Greater than $100 million | 8 | 4 | - | 6 | 5 |  |
| Total | 100% | 100% | 100% | 100% | 100% |  |

(a) Includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia and the District of Columbia.

(b) Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

Loans secured by real estate, including outstanding balances of home equity loans and lines of credit which the Company classifies as consumer loans, represented approximately 58% of the loan and lease portfolio during 2022, compared with 59% in each of 2021 and 2020. At December 31, 2022, the Company held approximately $45.4 billion of commercial real estate loans (including $131 million held for sale), $23.8 billion of consumer real estate loans secured by one-to-four family residential properties (including $32 million of loans held for sale) and $5.0 billion of outstanding balances of home equity loans and lines of credit, compared with $35.4 billion, $16.1 billion and $3.6 billion, respectively, at December 31, 2021. Included in commercial real estate loans at December 31, 2022 and 2021 were construction loans of $8.6 billion and $9.3 billion, respectively, including amounts due from builders and developers of residential real estate aggregating $1.3 billion and $1.4 billion at December 31, 2022 and 2021, respectively. Commercial real estate loans included loans held for sale totaling $131 million and $425 million at December 31, 2022 and 2021, respectively. International loans included in commercial real estate loans totaled $69 million at December 31, 2022 and $74 million at December 31, 2021.

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Commercial real estate loans originated by the Company include both fixed and variable rate instruments with monthly payments and a balloon payment of the remaining unpaid principal at maturity. Maturity dates generally range from five to ten years and, for borrowers in good standing, the terms of such loans may be extended by the customer following maturity at the then-current market rate of interest. Adjustable-rate commercial real estate loans represented approximately 77% of the commercial real estate loan portfolio at the 2022 year-end. Table 6 presents commercial real estate loans by geographic area, type of collateral and size of the loans outstanding at December 31, 2022. New York City commercial real estate loans totaled $5.8 billion at December 31, 2022. The $5.3 billion of investor-owned commercial real estate loans in New York City were largely secured by multifamily residential properties, retail space and office space. The Company’s experience has been that office, retail and service-related properties tend to demonstrate more volatile fluctuations in value through economic cycles and changing economic conditions than do multifamily residential properties. Approximately 64% of the aggregate dollar amount of New York City loans were for loans with outstanding balances of $30 million or less, while loans of more than $50 million made up approximately 25% of the total.

Commercial real estate loans secured by properties located in other parts of New York State, the New England area and the Mid-Atlantic area tend to have a greater diversity of collateral types and include a significant amount of lending to customers who use the mortgaged property in their trade or business (owner-occupied). Approximately 90% of the aggregate dollar amount of commercial real estate loans in New York State secured by properties located outside of New York City were for loans with outstanding balances of $30 million or less. Of the outstanding balances of commercial real estate loans in the New England and Mid-Atlantic areas, approximately 86% and 78%, respectively, were for loans with outstanding balances of $30 million or less.

Commercial real estate loans secured by properties located outside of the New England area, the Mid-Atlantic area and New York State comprised 16% of total commercial real estate loans as of December 31, 2022.

Commercial real estate construction and development loans made to investors presented in table 6 totaled $8.3 billion at December 31, 2022, or 6% of total loans and leases. Approximately 98% of those construction loans had adjustable interest rates. Included in such loans at the 2022 year-end were $1.3 billion of loans to builders and developers of residential real estate properties. The remainder of the commercial real estate construction loan portfolio was comprised of loans made for various purposes, including the construction of office buildings, multifamily residential housing, retail space and other commercial development.

M&T Realty Capital Corporation, a commercial real estate lending subsidiary of M&T Bank, participates in the Delegated Underwriting and Servicing (“DUS”) program of Fannie Mae, pursuant to which commercial real estate loans are originated in accordance with terms and conditions specified by Fannie Mae and sold. Under this program, loans are sold with partial credit recourse to M&T Realty Capital Corporation. The amount of recourse is generally limited to one-third of any credit loss incurred by the purchaser on an individual loan, although in some cases the recourse amount is less than one-third of the outstanding principal balance. The Company’s maximum credit risk for recourse associated with sold commercial real estate loans was approximately $3.9 billion at December 31, 2022 and $4.0 billion at December 31, 2021. There have been no material losses incurred as a result of those recourse arrangements. At December 31, 2022 and 2021, commercial real estate loans serviced by the Company for other investors were $26.0 billion and $23.7 billion, respectively. Reflected in commercial real estate loans serviced for others were loans sub-serviced for others that had outstanding balances of $3.8 billion and $3.5 billion at December 31, 2022 and 2021, respectively.

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**Table 6**

# **COMMERCIAL REAL ESTATE LOANS, NET OF UNEARNED DISCOUNT  
December 31, 2022**

|  | New York State |  | Mid-Atlantic (a) | New England (b) | Other | Total | Percent of Total |
| --- | --- | --- | --- | --- | --- | --- | --- |
|  | New York City | Other |  |  |  |  |  |
| (Dollars in millions) |  |  |  |  |  |  |  |
| Investor-owned |  |  |  |  |  |  |  |
| Permanent finance by property type |  |  |  |  |  |  |  |
| Retail/Service | $1,178 | $1,364 | $1,606 | $1,510 | $638 | $6,296 | 14% |
| Apartments/Multifamily | 1,154 | 1,115 | 838 | 1,625 | 1,156 | 5,888 | 13 |
| Office | 732 | 1,168 | 1,333 | 1,480 | 473 | 5,186 | 12 |
| Health facilities | 224 | 887 | 1,324 | 687 | 545 | 3,667 | 8 |
| Hotel | 301 | 565 | 910 | 577 | 457 | 2,810 | 6 |
| Industrial/Warehouse | 137 | 379 | 647 | 518 | 557 | 2,238 | 5 |
| Other | 189 | 51 | 123 | 158 | 6 | 527 | 1 |
| Total permanent | 3,915 | 5,529 | 6,781 | 6,555 | 3,832 | 26,612 | 59% |
| Construction/Development |  |  |  |  |  |  |  |
| Commercial |  |  |  |  |  |  |  |
| Construction | 1,132 | 774 | 2,203 | 875 | 1,435 | 6,419 | 14% |
| Land/Land development | 149 | 42 | 174 | 31 | 128 | 524 | 1 |
| Residential builder and developer |  |  |  |  |  |  |  |
| Construction | 101 | 27 | 136 | 9 | 582 | 855 | 2 |
| Land/Land development | - | 26 | 125 | - | 308 | 459 | 1 |
| Total construction/development | 1,382 | 869 | 2,638 | 915 | 2,453 | 8,257 | 18% |
| Total investor-owned | 5,297 | 6,398 | 9,419 | 7,470 | 6,285 | 34,869 | 77% |
| Owner-occupied by industry (c) |  |  |  |  |  |  |  |
| Other services | 193 | 677 | 821 | 479 | 83 | 2,253 | 5% |
| Motor vehicle and recreational finance dealers | 12 | 369 | 713 | 333 | 421 | 1,848 | 4 |
| Retail | 40 | 380 | 737 | 400 | 131 | 1,688 | 4 |
| Health services | 80 | 260 | 322 | 294 | 33 | 989 | 2 |
| Wholesale | 57 | 162 | 544 | 164 | 51 | 978 | 2 |
| Manufacturing | 26 | 284 | 251 | 236 | 44 | 841 | 2 |
| Real estate investors | 55 | 328 | 211 | 117 | 21 | 732 | 2 |
| Other | 54 | 328 | 559 | 206 | 20 | 1,167 | 2 |
| Total owner-occupied | 517 | 2,788 | 4,158 | 2,229 | 804 | 10,496 | 23% |
| Total commercial real estate | $5,814 | $9,186 | $13,577 | $9,699 | $7,089 | $45,365 | 100% |
| Percent of total | 13% | 20% | 30% | 21% | 16% | 100% |  |
| Percent of dollars outstanding by size of loan |  |  |  |  |  |  |  |
| Less than $1 million | 3% | 13% | 10% | 10% | 9% | 9% |  |
| $1 million to $10 million | 28 | 46 | 35 | 42 | 23 | 36 |  |
| $10 million to $30 million | 33 | 31 | 33 | 34 | 26 | 32 |  |
| $30 million to $50 million | 11 | 7 | 15 | 12 | 19 | 13 |  |
| $50 million to $100 million | 19 | 3 | 6 | 1 | 13 | 7 |  |
| Greater than $100 million | 6 | - | 1 | 1 | 10 | 3 |  |
| Total | 100% | 100% | 100% | 100% | 100% | 100% |  |

(a) Includes Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia and the District of Columbia.

(b) Includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

(c) Includes $359 million of construction loans.

Real estate loans secured by one-to-four family residential properties were $23.8 billion at December 31, 2022, including approximately 31% secured by properties located in New York State, 30% secured by properties located in the Mid-Atlantic area and 27% secured by properties located in New England. The Company's portfolio of limited documentation residential real estate loans held for investment totaled $1.1 billion at December 31, 2022, compared with $1.3 billion at December 31, 2021. That portfolio consisted predominantly of limited documentation loans acquired in a prior business combination. Such loans represent loans that at origination typically included some form of limited borrower documentation requirements as compared with more traditional residential real estate

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