Q1 2026 M&T Bank Corp Earnings Call

April 15, 2026

Operator: Welcome to the M&T Bank Q1 2026 Earnings Conference Call. All lines have been placed on listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star, then the number one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. When posing your question, we ask that you please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero. Please be advised that today's conference is being recorded.

Speaker #2: Welcome to the M&T Bank First Quarter 2026 Earnings Conference Call. All lines have been placed on listen-only mode, and the floor will be open for your questions.

Speaker #2: Following the presentation, if you would like to ask a question at that time, please press star, then the number one on your telephone keypad.

Speaker #2: If at any point your question has been answered , you may remove yourself from the queue by pressing star two . When posing your question , we ask that you please pick up your handset to allow for optimal sound quality Lastly , if you should require operator assistance , please press star zero .

Speaker #2: Please be advised that today's conference is being recorded. I would now like to hand the conference over to Rajiv Ranjan, Head of Investor Relations and Corporate Development.

Operator: I would now like to hand the conference over to Rajiv Ranjan, Head of Investor Relations and Corporate Development. Please go ahead.

Rajiv Ranjan: Thank you, Angela, and good morning. I would like to thank everyone for participating in M&T's Q1 2026 Earnings Conference Call. If you have not read the earnings release we issued this morning, you may access it along with the financial tables and schedules by going to our investor relations website at ir.mtb.com. Also, before we start, I would like to mention that today's presentation may contain forward-looking information. Cautionary statements about this information are included in today's earnings release materials and in the investor presentation, as well as our SEC filings and other investor materials. The presentation also includes non-GAAP financial measures as identified in the earnings release and investor presentation. The appropriate reconciliations to GAAP are included in the appendix. Joining me on the call this morning is M&T's Senior Executive Vice President and CFO, Daryl Bible.

Speaker #2: Please go ahead

Speaker #3: Thank you, Angela, and good morning. I would like to thank everyone for participating in the first quarter 2026 earnings conference call.

Speaker #3: If you have not read the earnings release , we issued this morning , you may access it along with the financial tables and schedules by going to our Investor Relations website at IRA dot com Also , before we start , I would like to mention that today's presentation may contain forward looking information Cautionary statements about this information are included in today's earnings release .

Speaker #3: Materials are in the investor presentation, as well as our SEC filings and other investor materials. The presentation also includes non-GAAP financial measures as identified in the earnings release and investor presentation.

Speaker #3: The appropriate reconciliations to GAAP are included in the appendix. Joining me on the call this morning is M&T's Senior Executive Vice President and CFO, Daryl Bible.

Rajiv Ranjan: Now I would like to turn the call over to Daryl.

Speaker #3: Now , I would like to turn I would like to turn the call over to Dara Thank you .

Daryl Bible: Thank you, Rajiv, and good morning, everybody. As we move into the next earnings season, I want to start with what continues to define M&T. Our purpose is to make a difference in people's lives. We do this by helping our customers grow, enabling commerce, and supporting our communities. We value building long-term relationships and being a source of strength and stability to our stakeholders through various economic cycles. We are committed to investing in places we serve. In this quarter alone, we recently launched a new Baltimore Ravens College Track Center, a state-of-the-art learning and support space for local high school scholars. In New York City, we opened a new full-service branch in the Bronx. Just this week, we announced our work with the Boston Foundation on a multimillion-dollar program with the City of Boston to accelerate the city's innovation ecosystem.

Speaker #4: Rajiv, and good morning, everybody. As we move into the next earnings season, I want to start with what continues to define M&T. Our purpose is to make a difference in people's lives.

Speaker #4: We do this by helping our customers grow, enabling commerce, and supporting our communities. We value building long-term relationships and being the source of strength and stability to our stakeholders through various economic cycles.

Speaker #4: We are committed to investing in places we serve , and this quarter alone . We recently launched a new Baltimore Ravens College Track Center , a state of the art learning and support space for local high school scholars in New York City .

Speaker #4: We opened a new full service branch in the Bronx , and just this week we announced our work with the Boston Foundation on a multi dollar program with the City of Boston to accelerate , accelerate the city's innovation ecosystem Looking ahead to 2026 , our priorities remain clear .

Daryl Bible: Looking ahead to 2026, our priorities remain clear. Operational excellence, that is building simpler, more consistent, and resilient operations, and teaming for growth, which is about working more seamlessly to deepen relationships and expand the opportunity in our markets. We enter this season with the same relentless commitment to disciplined execution and long-term performance. To that end, before we get started into the results this quarter, let me start by underscoring some long-standing qualities that have come to characterize M&T's performance. M&T has always maintained a strong balance sheet, starting with a very high-quality loan portfolio, proven asset quality performance over the long term, strong level and quality of capital, and ample liquidity. Regardless of the business environment, we remain steadfast in our disciplined approach to underwriting, pricing, and risk management.

Speaker #4: Operational excellence that is building simpler , more consistent and resilient operations . And teaming for growth , which is about working more seamlessly to deepen relationships and expand the opportunity in our markets We enter this season with some with the same relentless commitment to discipline , execution and long term performance .

Speaker #4: To that end , before we get started into the results this quarter , let me start by underscoring some long standing qualities that have come to characterize Matt's performance M.A has always maintained a strong balance sheet , starting with the very high quality loan portfolio , proven asset quality , performance over the long term Strong level and quality of capital , and ample liquidity regardless of the business environment , we remain steadfast in our disciplined approach to underwriting , pricing and risk management .

Daryl Bible: At times, that results in focused growth in some loan categories while remaining vigilant on others, as was the case last year and this quarter. I would rather say no to a transaction than compromise on structure and pricing. We chose to be selective to be preserving the high quality and low volatility of our revenue and earnings stream. Those tenets serve us well, and I am confident that we will see growth in all loan categories this year, but in a manner that delivers progress while protecting all of our constituents, including customers, communities, and investors. As the industry navigates some new uncertainties from current events, we have chosen to be cautious with our NIM expectations. We remain confident in delivering the performance we expected when we started the year.

Speaker #4: At times, that results in focused growth in some loan categories, while remaining vigilant on others, as was the case last year.

Speaker #4: And this quarter, I would rather say no to a transaction than compromise on structure and pricing. We chose to be selective, to be preserving the high quality and low volatility of our revenue and earnings stream.

Speaker #4: Those tenets serve us well, and I am confident that we will see growth in all loan categories this year, but in a manner that delivers progress.

Speaker #4: While protecting all of our constituents, including customers, communities, and investors, as the industry navigates some new uncertainties from current events, we have chosen to be cautious with our NIM expectations.

Speaker #4: But we remain confident in delivering the performance we expected when we started the year. Our pipelines remain strong, but we chose not to chase growth or yield if the transaction doesn't fit.

Daryl Bible: Our pipelines remain strong, but we chose not to chase growth or yield if a transaction doesn't fit underwriting and our return standards. We have one of the highest-quality risk-adjusted NIMs in the peer group, and we will maintain that while delivering strong results driven by well-diversified revenue stream. We are starting with a strong year-over-year fee income momentum, and those fee income growth contributors are of high quality and low volatility. Asset quality has been improving notably. Our strong capital levels as well as our consistent capital generation gives us flexibility for share repurchases. In combination, these factors will allow us to produce strong pre-tax, pre-provision revenue and earnings in line and with a possibility of exceeding expectations. As we go through the presentation today, I will highlight strengths and diversification of M&T's balance sheet, capital, asset quality, and revenue, which enables M&T to outperform consistently across cycles.

Speaker #4: Underwriting and or return standards We have one of the highest quality risk adjusted Nims in the peer group , and we will maintain that while delivering strong , results driven by , well diversified revenue stream .

Speaker #4: We are starting with a strong year over year fee income momentum , and those fee income growth contributors are of high quality and low volatility asset quality has been improving , notably , our strong capital levels as well as our consistent capital generation , gives us flexibility for share repurchases in combination .

Speaker #4: These factors will allow us to produce strong pre-tax, pre-provision revenue and earnings in line, and with a possibility of exceeding expectations as we go through the presentation today.

Speaker #4: I will highlight strengths and diversification of its balance sheet capital, asset quality, and revenue, which enables M&T to outperform consistently across cycles. Turn to slide five.

Daryl Bible: Turn to slide five. We continue to receive recognition for our performance, including the impact of our charitable team and our engagement with investors, reflecting dedication of our teams across M&T. Now let's turn to slide seven, which shows the results for the Q1. Our results represent a strong start to the year with several successes to highlight. Net interest margin expanded two basis points, reflecting continued fixed-rate asset repricing and deposit cost discipline. C&I growth was strong, with average C&I loans growing at $1.5 billion from the Q4, including a pickup in middle market growth. Fee income remains a bright spot, growing 13% from the Q1 of 2025, with a solid year-over-year growth in each of our fee categories. Credit continues to perform well, with more than $700 million reduction in criticized balances and net charge-offs of 31 basis points.

Speaker #4: We continue to receive recognition for our performance, including the impact of our charitable team and our engagement with investors, reflecting the dedication of our teams across M.A.

Speaker #4: Now let's turn to slide seven, which shows the results for the first quarter. Our results represent a strong start to the year, with several successes to highlight.

Speaker #4: Net interest margin expanded two basis points , reflecting continued fixed rate asset repricing and deposit cost discipline BNI growth was strong with average CNI loans growing at 1.5 billion from the fourth quarter , including a pickup in middle market growth fee income remains a bright spot , growing 13% from the first quarter of 2025 , with a solid year over year growth in each of our fee categories Credit continues to perform well with more than 700 million reduction in criticized balances and net charge offs of 31 basis points .

Daryl Bible: We brought our capital levels within our operating range and executed $1.25 billion in share repurchases, representing over 3.5% of shares outstanding as of the end of 2025. Diluted GAAP earnings per share were $4.13, down from $4.67 in the prior quarter. Net income was $664 million compared to $759 million in the linked quarter. M&T's Q1 results produced an ROA and ROCE of 1.26% and 9.67%, respectively. Slide eight includes supplemental reporting of M&T's results on net operating or tangible basis. M&T's net operating income was $671 million, compared to $767 million in the linked quarter. Diluted net operating earnings per share were $4.18, down from $4.72 in the prior quarter. Net operating income yielded an ROTA and an ROTCE of 1.33% and 14.51% for the recent quarter. Next, we will look a little deeper into the underlying trends that generated our Q1 results.

Speaker #4: We brought our capital levels within our operating range and executed $1.25 billion in share repurchases, representing over 3.5% of shares outstanding as of the end of 2025.

Speaker #4: Diluted GAAP earnings per share were $4.13, down from $4.67 in the prior quarter. Net income was $664 million, compared to $759 million in the linked quarter. M&T's first quarter results produced an ROA and ROCE of 1.26% and 9.67%, respectively. Slide eight includes supplemental reporting of M&T's results on a net operating or tangible basis.

Speaker #4: Matt's net operating income was 671 million , compared to 767 million in the quarter , diluted net operating earnings per share were $4.18 , down from $4.72 in the prior quarter Net operating income yielded an OTA and an ROTC of 1.33% , and 14.51% for the recent quarter Next , we will look a little deeper into the underlying trends that generated our first quarter results .

Daryl Bible: Please turn to slide nine. Taxable equivalent net interest income was $1.76 billion, a decrease of $27 million or 2% from the linked quarter. Net interest margin was 3.71%, an increase of 2 basis points from the prior quarter. This improvement was driven by +8 basis points from the higher spread, driven by fixed asset repricing, remixing of cash to securities, deposit pricing discipline, and a favorable impact on our swap portfolio. That was partially offset by -6 basis points from a lower contribution of free funds, driven by share repurchases and the impact of lower rates on the value of free funds. Turning to slide 11 to talk about average loans. Average loans and leases increased $0.8 billion to $138.4 billion. Higher commercial loans were partially offset by lower CRE and consumer balances.

Speaker #4: Please turn to slide nine . Actual equivalent net interest income was $1.76 billion . A decrease of 27 million , or 2% , from the linked quarter .

Speaker #4: Net interest margin was 3.71% , an increase of two basis points from the prior quarter . This improvement was driven by a positive eight basis points from the higher spread , driven by fixed asset repricing remixing of cash to securities deposit pricing , discipline and a favorable impact on our swap portfolio .

Speaker #4: That was partially offset by a negative six basis points from a lower contribution of fee funds, driven by share repurchases and the impact of lower rates on the value of free funds. Turning to slide 11 to talk about average loans, average loans and leases increased $0.8 billion to $138.4 billion.

Speaker #4: Our commercial loans were partially offset by lower CRE and consumer balances. Commercial loans increased $1.5 billion to $63.8 billion, aided by growth in middle market business banking and several of our specialty businesses.

Daryl Bible: Commercial loans increased $1.5 billion to $63.8 billion, aided by growth in middle market, business banking, and several of our specialty businesses. Higher middle market loans reflect an uptick in utilization in Q1. CRE loans declined 3% to $23.5 billion, reflecting a somewhat moderating paydowns but softer origination volume, particularly in January and February. However, we saw strong CRE origination activity in March. Residential mortgage loans were largely unchanged at $24.8 billion. Consumer loans declined 1% to $26.3 billion from lower recreational finance and auto loans due to poor weather early in the year. Loan yields decreased 14 basis points to 5.86%, reflecting lower rates on variable rate loans, partially offset by fixed rate loan repricing and eliminating a negative carry on our swaps. Turning to slide 12. Our liquidity remains strong.

Speaker #4: Higher middle market loans reflect an uptick in utilization in the first quarter. CRE loans declined 3% to $23.5 billion, reflecting a somewhat moderating paydown.

Speaker #4: We saw softer origination volume, particularly in January and February. However, we saw strong CRE origination activity in March. Residential mortgage loans were largely unchanged at $24.8 billion.

Speaker #4: Consumer loans declined 1% to 26.3 billion , from lower recreational finance and auto loans due to poor weather early in the year , loan yields decreased 14 basis points to 5.86% , reflecting lower rates on variable rate loans , partially offset by fixed rate loan repricing and eliminating a negative carry on .

Speaker #4: Our swaps . Turning to slide 12 . Our liquidity remains strong . At the end of the first quarter , investment securities and cash held at the fed totaled 53.1 billion , representing 25% of total assets .

Daryl Bible: the end of Q1, investment securities and cash held at the Fed totaled $53.1 billion, representing 25% of total assets. Average investment securities increased $1.1 billion to $37.8 billion. The yield on investment securities increased nine basis points to 4.26%. The duration of the investment portfolio at the end of Q1 was three years, and the unrealized pretax gain on the Available-for-Sale portfolio was $9 million. While not subject to the LCR requirements, M&T estimates that its LCR at the Q1 end was 107%, exceeding the regulatory minimum standards that would be applicable if we were a Category 3 institution. Turning to slide 13, average total deposits declined $0.8 billion to $164.3 billion. Non-interest-bearing deposits increased $0.4 billion to $44.6 billion, aided by institutional services. Interest-bearing deposits decreased $1.2 billion to $119.7 billion, driven by lower broker deposits.

Speaker #4: Average investment securities increased 1.1 billion to 37.8 billion . The yield on investment securities increased nine basis points to 4.26% . A duration of the investment portfolio at the end of the quarter was 3.8 years , and the unrealized pre-tax gain on the available for sale portfolio was 9 million .

Speaker #4: While not subject to the LCR requirements, M.A. estimates that its LCR at the quarter end was 107%, exceeding the regulatory minimum standards.

Speaker #4: That would be applicable if we were a category three institution. Turning to slide 13. Average total deposits declined $0.8 billion to $164.3 billion.

Speaker #4: Non-interest bearing deposits increased 0.4 billion to 44.6 billion , aided by institutional services , interest bearing deposit costs decreased 1.2 billion to 119.7 billion , driven by lower broker deposits , interest bearing deposit costs decreased 21 basis points to 1.96% , with lower deposit costs across each of our segments , we have been able to grow customer deposits and maintain deposit costs , discipline since the first quarter of 2025 , we have more than funded our loan growth , with average customer deposits outpacing loan growth by more than $1 billion .

Daryl Bible: Interest-bearing deposit costs decreased 21 basis points to 1.96%, with lower deposit costs across each of our segments. We have been able to grow customer deposits and maintain deposit cost discipline. Since Q1 2025, we have more than funded our loan growth with average customer deposits outpacing loan growth by more than $1 billion. We grew customer deposits while we were maintaining deposit cost discipline, reflected in a 56% interest-bearing deposit beta since the start of the cutting cycle in 2024. Continuing on slide 14, non-interest income was $689 million, compared to $696 million in the linked quarter. Mortgage banking revenues were $127 million, down from $155 million in Q4. Residential mortgage revenues decreased $16 million to $89 million, mostly related to the MSR time decay now being recognized as a contra fee item rather than an expense.

Speaker #4: We grew customer deposits while we were maintaining deposit cost discipline, reflected in a 56% interest-bearing deposit beta since the start of the cutting cycle in 2024.

Speaker #4: Continuing on slide 14. Non-interest income was $689 million, compared to $696 million in the linked quarter. Mortgage banking revenues were $127 million, down from $155 million in the fourth quarter.

Speaker #4: Residential mortgage revenues decreased $16 million to $89 million, mostly related to the MSR time decay now being recognized as a contra fee item rather than an expense. Commercial mortgage banking decreased $12 million to $38 million, driven by lower volumes compared to the fourth quarter.

Daryl Bible: Commercial mortgage banking decreased $12 million to $38 million, driven by lower volumes compared to Q4. Other revenues from operations increased $24 million to $187 million from a $33 million Bayview distribution, partially offset by lower merchant discount. Turning to slide 15, non-interest expense for the quarter were $1.44 billion, increase of $59 million from the prior quarter. Salary and benefits increased $105 million to $914 million, reflecting approximately $115 million in seasonal compensation. Professional services decreased $12 million to $93 million, reflecting lower legal and review cost. FDIC expense increased $31 million, primarily related to a $29 million reduction of estimated special assessment expense in Q4. Other costs of operations decreased $50 million to $101 million from the previously mentioned changes related to the accounting for the MSR portfolio and a $50 million charitable contribution in the prior quarter.

Speaker #4: Other revenues from operations increased $24 million to $187 million, from a $33 million Bayview distribution, partially offset by lower merchant discounts. Turning to slide 15.

Speaker #4: Non-interest expense for the quarter was $1.44 billion, an increase of $59 million from the prior quarter. Salary and benefits increased $105 million to $914 million, reflecting approximately $115 million in seasonal compensation.

Speaker #4: Professional services decreased $12 million to $93 million, reflecting lower legal and review costs. FDIC expense increased $31 million, primarily related to a $29 million reduction of estimated special assessment expense in the fourth quarter.

Speaker #4: Other costs of operations decreased $50 million to $101 million from the previously mentioned changes related to the accounting for the MSR portfolio, and a $50 million.

Daryl Bible: The efficiency ratio was 58.3% compared to 55.1% in the linked quarter. Next, let's turn to slide 16 and 17 for credit. Asset quality was strong, with lower net charge-offs and continued improvement in non-accruals and criticized loans. The level of criticized loans was $6.6 billion, compared to $7.3 billion at the end of December. The improvement from the linked quarter was driven by a $400 million decline in CRE and $306 million decline in C&I criticized. Non-accrual loans decreased slightly to $1.2 billion, and the non-accrual ratio decreased 1 basis point to 89 basis points. Net charge-offs for Q1 totaled $105 million or 31 basis points, decreasing from 54 basis points in the linked quarter. Net charge-offs were granular, with no single net charge-off greater than $10 million. In Q1, we recorded a provision for credit losses of $140 million compared to charge-offs of $105 million.

Speaker #4: Charitable contribution in the prior quarter . The efficiency ratio was 58.3% , compared to 55.1% in the linked quarter . Next , let's turn to slide 16 and 17 for credit asset quality was strong with lower net charge offs and continued improvement in Non-accruals and criticized loans .

Speaker #4: The level of criticized loans was $6.6 billion, compared to $7.3 billion at the end of December. The improvement from the linked quarter was driven by a $400 million decline in CRE and a $306 million decline in CNI. Criticized non-accrual loans decreased slightly to $1.2 billion, and the non-accrual ratio decreased one basis point to 89 basis points.

Speaker #4: Net charge-offs for the quarter totaled $105 million, or 31 basis points, decreasing from 54 basis points in the linked quarter.

Speaker #4: Net charge offs were granular , with no single net charge off greater than 10 million , in the first quarter . We recorded a provision for credit losses of 140 million , compared to charge offs of 105 million .

Daryl Bible: The allowance for loan losses as a percent of total loans was unchanged at 1.53%. Slide 18 has a summary of our NBFI portfolio. Our NBFI portfolio remains a smaller percentage of total loans compared to our peer group. Three portfolios, which are longstanding and relatively well understood by the market, comprise over 2/3 of the NBFI loans. Those portfolios include fund banking or subscription lines, residential mortgage warehouse lending, and institutional CRE, which is primarily lending to REITs. We've also included additional information on business credit intermediaries on slide 19. This portion of the NBFI consists of $0.7 billion of wholesale lender finance, $0.6 billion of business leasing, and $0.4 billion of loans to BDCs. Across the NBFI portfolio, advance rates vary but are calibrated to asset quality, historical recovery data, and collateral performance. Visibility into collateral is strong, with frequent reporting, borrowing bases, independent valuations, and field exams.

Speaker #4: The allowance for loan losses as a percent of total loans was unchanged at 1.53%. Slide 18 has a summary of our NFI portfolio.

Speaker #4: Our NFI portfolio remains a smaller percentage of total loans compared to our peer group . Three portfolios , which are long standing and relatively well understood by the market , comprised over two thirds of the NFI loans .

Speaker #4: Those portfolios include fund banking or subscription lines, residential mortgage warehouse lending, and institutional CRE, which is primarily lending to REITs. We've also included additional information on business credit intermediaries on slide 19.

Speaker #4: This portion of the NFI consists of $0.7 billion of wholesale lender finance, $0.6 billion of business leasing, and $0.4 billion of loans to BDCs across the NFI portfolio.

Speaker #4: Advance rates vary , but are calibrated to asset quality , historical recovery data and collateral performance . Visibility into collateral is strong , with frequent reporting , borrowing bases , independent valuations and field exams .

Daryl Bible: Diversification is a key mitigant, both within the structures and across the broader NBFI portfolio. For example, software exposure within our BDC portfolio is less than 15%. Turning to slide 20 for capital. M&T's CET1 ratio was an estimated 10.33%, decline of 51 basis points from Q4. The lower CET1 ratio reflects $1.25 billion share repurchases and increased risk-weighted assets, partially offset by continued strong capital generation. In March, the Federal Reserve issued regulatory capital framework proposals. Based on our initial estimate, we estimate an approximate 90 basis point benefit to our CET1 related to lower risk-weighted assets under the standardized approach. If we were to opt in to the expanded risk-based approach, we estimate an incremental 10 to 20 basis point benefit. The proposal also has a phase-in inclusion of AFS securities and pension-related AOCI in the regulatory capital.

Speaker #4: Diversification is a key mitigant both within the structures and across the broader NFI portfolio. For example, software exposure within our BDC portfolio is less than 15%. Turning to slide 20 for capital metrics, CET1 ratio was an estimated 10.33%, a decline of 51 basis points from the fourth quarter.

Speaker #4: The lower CET1 ratio reflects $1.25 billion in share repurchases and increased risk-weighted assets, partially offset by continued strong capital generation and March.

Speaker #4: The Federal Reserve issued regulatory capital framework proposals. Based on our initial estimate, we estimate an approximate 90 basis point benefit to our city.

Speaker #4: One related to lower risk weighted assets under the standardized approach . If we were to opt in to the expanded risk based approach , we estimate an incremental 10 to 20 basis point benefit .

Speaker #4: The proposal also has a phase-in inclusion of AFS securities and pension-related AOCI in the regulatory capital. At the end of the year, this would be a four basis point benefit to the city.

Daryl Bible: At the end of the year, this would be 4 basis point benefit to the CET1 ratio on a fully phased-in basis. We are well positioned for these proposals given the current capital levels, AOCI, loan mix, disciplined credit underwriting, and relatively straightforward business model. Now turning to outlook on 2021. First, let's begin with the economic backdrop. The economy continues to hold up well despite the ongoing concerns and uncertainty regarding tariffs and other policies. The situation in Iran poses new risks to the US and global economies through energy prices and uncertainty. Consumer spending has slowed but continues to grow in aggregate. However, there is a growing divide between higher and lower income households, often called the K-shaped economy. The higher-end consumer continues to be stronger and is spending, while the lower-end consumer has not declined but maintained and is vulnerable to the risks in the environment.

Speaker #4: One ratio on a fully phased in basis . We are well positioned for these proposals given the current capital levels . Aoci loan mix , discipline , credit underwriting and relatively straightforward business model .

Speaker #4: Now, turning to outlook on '21. First, let's begin with the economic backdrop. The economy continues to hold up well, despite the ongoing concerns and uncertainty regarding tariffs and other policies.

Speaker #4: The situation in Iran poses new risks to the US and global economies through energy prices and uncertainty. Consumer spending has slowed, but continues to grow in aggregate.

Speaker #4: However , there is a growing divide between higher and lower income households , often called the K shaped economy . The higher end consumer continues to be stronger and is spending while the lower end consumer has not declined .

Speaker #4: But maintained and is vulnerable to the risks in the environment. US GDP growth has slowed, reflecting slower consumer spending among the impacts.

Daryl Bible: US GDP growth has slowed, reflecting slower consumer spending among the impacts. Encouragingly, the underlying details for Q1 shows continued strength in equipment investment by firms. The weak labor market in 2025 is showing possible signs of bottoming out, but we remain attuned to the risks from the geopolitical conflict. We remain well positioned for a dynamic economic environment. Now turning to outlook. Our full-year expectations are unchanged from the ranges we discussed in January's earnings call. I'll discuss some of the current trends we are seeing. NII is trending toward the bottom half of NII outlook of $7.2 to 7.35, which translates into a NIM into the high 3.60s. We started the year with slower CRE and consumer growth than our initial expectations, though this has been partially offset by strength in C&I. We saw stronger CRE origination volume in March.

Speaker #4: Encouragingly, the underlying details for the first quarter show continued strength in equipment investment by firms. The weak labor market in 2025 is showing possible signs of bottoming out, but we remain attuned to the risks from the geopolitical conflict, and remain well positioned for a dynamic economic environment.

Speaker #4: Now, turning to outlook, our full-year expectations are unchanged from the ranges we discussed in January's earnings call, but I'll discuss some of the current trends we are seeing.

Speaker #4: Knee is trending toward the bottom half of knee outlook of 7.2 to 7.35, which translates into a NIM into the high 3.60s.

Speaker #4: We started the year with slower CRE and consumer growth than our initial expectations, though this has been partially offset by strength in CNI. We saw stronger CRE origination volume in March.

Daryl Bible: NII will continue to be dependent on the shape of the curve and loan and deposit balances. We expect both fee income and expenses to trend toward the top of their respective ranges. This reflects strength in both fee income categories and additional sub-servicing balances, which expect to bring in H2 of the year. We continue to manage PPNR well within the range implied by our January guidance. Our taxable equivalent tax rate is expected to be approximately 24% compared to the prior outlook of 24% to 24.5%. We are also moving to the bottom end of the CET1 ratio of 10%, given continued asset quality improvement and our strong performance. Overall performance remains on track with our initial expectations. To conclude on slide 22, our results underscore an optimistic investment thesis. M&T has always been a purpose-driven organization with successful business model that benefits all stakeholders, including shareholders.

Speaker #4: NII will continue to be dependent on the shape of the curve and loan and deposit balances . We expect . We expect both fee income and expenses to trend toward the top of their respective ranges .

Speaker #4: This reflects strength in both fee income categories and additional subservicing balances, which we expect to bring in during the second half of the year.

Speaker #4: We continue to manage PPE and are well within the range implied by our January guidance. Our taxable equivalent tax rate is expected to be approximately 24%, compared to the prior outlook of 24% to 24.5%.

Speaker #4: We are also moving to the bottom end of the CET1 ratio of 10%. Given continued asset quality improvement and our strong overall performance, overall performance remains on track with our initial expectations.

Speaker #4: To conclude on slide 22, our results underscore an optimistic investment thesis. MMT has always been a purpose-driven organization with a successful business model that benefits all stakeholders, including shareholders.

Daryl Bible: We have a long track record of credit outperforming through all economic cycles while growing within the markets we serve. We remain focused on shareholder returns and consistent dividend growth. Finally, we are a disciplined acquirer and prudent steward of shareholder capital. As we close, I want to thank my M&T colleagues who work tirelessly each day to make a difference in people's lives. It's because of you, M&T is able to support all of our communities. Thank you. Now let me turn the call over to questions.

Speaker #4: We have a long track record of credit outperforming through all economic cycles while growing within the markets we serve. We remain focused on shareholder returns and consistent dividend growth.

Speaker #4: And finally , we are disciplined . Acquirer and prudent stewards of shareholder capital . As we close , I want to thank my colleagues who worked tirelessly each day to make a difference in people's lives .

Speaker #4: It's because of you that M&T is able to support all of our communities. Thank you. Now, let me turn the call over to questions.

Operator: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question. Our first question today comes from Manan Gosalia with Morgan Stanley. Your line is open. Please go ahead.

Speaker #2: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two.

Speaker #2: Press star two once again, that is star one to ask a question. And our first question today comes from Manon Gazalia with Morgan Stanley.

Speaker #2: Your line is open. Please go ahead.

Manan Gosalia: Hi. Good morning, Daryl.

Daryl Bible: Good morning.

Manan Gosalia: Really appreciate all the detail on the capital side. Maybe I'll start there. First, you're saying ERBA is a positive. I just wanted to clarify that you're saying that you will be adopting that, or is it still something you're deciding on and maybe there's a higher expense impact from opting in or anything else that we might not be considering? The second on ERBA is what is driving that benefit? How are you thinking about credit risk and op risk?

Speaker #5: Hi . Good morning . Darryl . I really , really appreciate all the detail on the on the capital side . So maybe I'll start there .

Speaker #5: You know, first you're saying EBA is a positive. I just wanted to clarify that—are you saying that you will be adopting that, or is it still something you're deciding on? And, you know, maybe there's a higher expense impact from opting in, or anything else that we might not be considering.

Speaker #5: And just second, on the RBA, is what is driving that benefit. How are you thinking about credit risk and op risk?

Daryl Bible: Manan, thank you for the question. This proposal just came out. It has to go through, obviously, the comment process, and then it has to go through the approval process. I can't really commit to you that we will adopt the ERBA. What I can tell you is if there's an advantage that we see here today, if that doesn't change, I think it's up to us to make good decisions for our shareholders, which means we would opt in probably. Let's see how things play out, but if you're going to get that much of an advantage, we can put processes in place that should more than be able to pay for that.

Speaker #4: So thank you for the question . So , you know , this is proposal just came out . It has to go through obviously the comment process and then it has to go through the approval process .

Speaker #4: I can't really commit to you that we will adopt the IRB. But what I can tell you is, if there's an advantage that we see here today, that doesn't change.

Speaker #4: I think it's up to us to make good decisions for our shareholders , which means we would opt in probably . I mean , I let's see how things play out .

Speaker #4: But if you're going to get that much of an advantage, we can put processes in place that should more than be able to pay for that.

Manan Gosalia: Got it. All right, perfect. You did a pretty significant buyback this quarter, and you're bringing down the CET1 guide. Now that we have the new capital proposals, and assuming they go through as they're written, what would the right normalized CET1 level be for M&T over the longer term after the RWA benefit, and what's going to determine how quickly you get there?

Speaker #5: Got it . All right . Perfect . And then you did a pretty significant buyback this quarter . And you're bringing down the CT1 guide .

Speaker #5: Now that we have the new capital proposals, and assuming they go through as they're written, what would the right normalized CET1 level be?

Speaker #5: M&A over the longer term, after the RWA benefit, and what's going to determine how quickly you get there.

Daryl Bible: If it goes as the proposal, you use round numbers. If we adopt it, our CET1 make sure it goes up 100 basis points. Keep it simple. We'd have to really see what other constituencies, primarily the rating agencies, to see what they would think about that, because there is actually capital coming out of the system. They also use RWA in a lot of their calculations and how they measure that. I think we need to have more measurement there. My guess is, whether you get the full benefit or not, you probably will trend down lower and you probably see that easily in the tangible equity ratio.

Speaker #4: So , I mean , if it goes as a proposal , you know , it's just use round numbers . So if we adopt it , you know , our CTO goes up 100 basis points .

Speaker #4: Keep it simple . You know , we'd have to really see what other constituencies , primarily the rating agencies to see what they would think about that , because there is actually capital coming out of the system .

Speaker #4: But they also use r w a in a lot of their calculations . And how they measure that . So I think we need to have more measurement there .

Speaker #4: But my guess is, you know, whether you get the full benefit or not, you probably will trend down lower, and you probably see that easily in the tangible equity ratio.

Manan Gosalia: Got it. Thank you.

Speaker #5: Got it . Thank you

Operator: Thank you. Our next question comes from Scott Siefers with Piper Sandler. Your line is now open.

Speaker #2: Thank you. Our next question comes from Scott Siefers, Piper Sandler. Your line is now open.

Scott Siefers: Morning. Thanks for taking the question. Daryl, was just hoping you could sort of expand on what's causing the margin to come in a little bit below your prior expectations. I think you mentioned in your prepared remarks that you were just sort of choosing to be a little cautious on the guide. Simply trying to figure out if anything has changed or if it is indeed sort of approaching with an abundance of caution.

Speaker #6: Thanks for taking the question. Daryl, I was just hoping you could sort of expand on what's causing the margin to come in a little below your prior expectations.

Speaker #6: I think you mentioned in your prepared remarks that you were just sort of choosing to be a little cautious on the guide, simply trying to figure out if anything has changed or if it is indeed sort of approaching with an abundance of caution.

Daryl Bible: Yeah. So it's a combination of two things. Obviously, we didn't come out of the blocks really strong in the consumer indirect. That's an important portfolio to us because it has higher yields, and it was really more of a weather event from that perspective. We believe that we're going to be able to catch that up and make progress on that, but until that happens or whatever, I think we're just being cautious from that standpoint. And then from a CRE perspective, seasonally, it always kind of drops off in the first quarter. But we had over a billion dollars in originations in March, really, really strong. We're off to a great start in the second quarter. So we feel we have a lot of confidence that CRE is going to get on track and start to grow this year and do really well.

Speaker #4: Yeah . So it's a combination of two things . You know , obviously , you know , we didn't come out of the blocks really strong in the consumer indirect .

Speaker #4: That's an important portfolio to us because it has higher yields. And it was really more of a weather event from that perspective.

Speaker #4: You know , we believe that we're going to be able to catch that up . And , you know , make progress on that .

Speaker #4: But until that happens or whatever , I think we're just being cautious from that standpoint . And then from a Cree perspective , you know , seasonally , it always kind of drops off in the first quarter .

Speaker #4: But we had over $1 billion in originations in March , really , really strong . We're off to a great start in the second quarter .

Speaker #4: So, we have a lot of confidence that Siri is going to get on track and start to grow this year and do really well.

Daryl Bible: Just a matter of when that happens, and that would be a benefit. The only other thing I would weigh in is, with higher rates, it's harder to get growth in our DDA accounts. That's something that we were hoping to grow a little bit more than what we thought. We'll see if rates actually stay flat or actually go down, or who knows right now. We're just being cautious from what we're seeing out there. We don't want to overcommit.

Speaker #4: Just a matter of when that happens, and that would be a benefit. The only other thing I would weigh in is, with higher rates, it's harder to get growth in our DDA accounts.

Speaker #4: And you know, that's something that we were hoping to grow a little bit more than what we thought. But we'll see if rates actually stay flat or actually go down, or who knows right now.

Speaker #4: But we're just being cautious from what we're seeing out there. We don't want to overcommit.

Scott Siefers: Okay, perfect. Thank you. One sort of tick-tack one. Maybe if you could discuss the overall level of borrowings. I think mostly as I look at it, sort of the end-of-period short-term borrowings, it's about as high as I can remember in some time, and it didn't look like it was obviously seasonality-related or anything like that. Just curious if there's anything going on there we should be aware of.

Speaker #6: Okay . Perfect . Thank you . And then one sort of ticky tack , one , maybe if you could discuss the the overall level of borrowings .

Speaker #6: I think mostly as I look at it , it's sort of the end of period , short term borrowings . It's about as high as I can remember in some , some time .

Speaker #6: And it didn't look like it was , you know , obviously seasonality related or anything like that . Just curious if there's anything anything going on there , we should be aware .

Daryl Bible: Yeah, I think we're just trying to manage to our short-term ratios, and we also have a lot of volatility in deposits within our ICS business. We have it for a while, and then it goes away, and we have to try to replace it. We just have that volatility and we're really good at keeping our lines open in a lot of multiple places, so we can always have access. Big believer in leaving lines in place, and then if we need to draw upon them and increase them more, we can do it immediately, same day. It's just how we manage our balance sheet to try to minimize it, the size of it. We don't want it to be too large or whatever. We want to operate at an optimal balance sheet size.

Speaker #7: Of .

Speaker #4: Yeah , I think it's we're just trying to manage to our short term ratios . And we also have a lot of volatility in deposits within our ICS business .

Speaker #4: So, we have it for a while and then it goes away. And we have to replace it. So, we just have that volatility.

Speaker #4: And you know, we're really good at keeping our lines open, and at a lot of multiple places. So we can always have access.

Speaker #4: Big believer in leaving lines in place. And then, if we need to draw upon them and increase them more, we can do it immediately.

Speaker #4: Same day . So it's just how we manage our balance sheet to try to minimize it . The size of it . We don't want it to be too large or whatever .

Speaker #4: We want to operate at an optimal balance sheet size.

Scott Siefers: Got it. All right, perfect. Thank you very much.

Daryl Bible: You're welcome.

Speaker #6: Got it. All right. Perfect. Thank you very much.

Operator: Thank you. Our next question comes from Gerard Cassidy with RBC Capital Markets. Your line is now open.

Speaker #4: You're welcome

Speaker #2: Thank you. Our next question comes from Gerard Cassidy, RBC Capital Markets. Your line is now open.

Gerard Cassidy: Hi, Daryl.

Daryl Bible: Hey, Gerard.

Gerard Cassidy: Daryl, circling back to the NBFI portfolio, which you give us obviously very good detail. Based upon M&T's history as being one of the better credit underwriters, your institution, similar to your peers, have all grown these portfolios quite rapidly over the last five years. Can you share with us what the catalyst, when you turn back the clock and just why has there been such material growth for you folks in this category of lending, versus other categories within the loan portfolio? Are there one or two reasons that you can identify, whether it's better capital treatment of the loans or something else that's driven the growth here?

Speaker #8: Hey , Darryl .

Speaker #4: Hey , Gerard .

Speaker #8: Darryl , circling back to the NFI portfolio , which you give us , obviously very good detail . And based upon Matt's history as being one of the better credit underwriters , your institution , similar to your peers , have all grown these portfolios quite rapidly over the last five years .

Speaker #8: Can you share with us what the catalyst was, when you turn back the clock, and just why there has been such material growth for you folks in this category of lending versus other categories within the loan portfolio?

Speaker #8: Are there one or two reasons that you can identify, whether it's better capital treatment or the loans, or something else that's driven you?

Daryl Bible: When I look at the bulk of our NBFI portfolio, it's three primary businesses. Mortgage warehouse lending is a core business for us. It's a really safe credit business. You have to make sure you do really good from an operations perspective and perfection of collateral. We run it, and it's a very efficient and very profitable business. Lending to REITs, I think we've done that for a long period of time. That is also another very sound way of growing. As we have opportunities there, that is a portfolio that's been growing nicely from that perspective. Our fund banking and capital call lines, that's a business we acquired from Webster.

Speaker #8: The growth here ?

Speaker #4: You know , when I look at , you know , the bulk of our NFI portfolio , it's three primary businesses , you know , mortgage warehouse lending is a core business for us .

Speaker #4: It's a really safe credit business. You have to make sure you do really good from an operations perspective, and perfection of collateral.

Speaker #4: But we run it and it's a very efficient and very profitable business . You know , lending to REITs . You know , I think we've done that for a long period of time .

Speaker #4: That is also another very sound way of growing. And as we have opportunities there, that is a portfolio that's been growing nicely from that perspective.

Speaker #4: And then our fund banking and capital call lines , that's a business we acquired from Webster . And , you know , we like the business from a credit perspective and believe it's a good fit for us .

Daryl Bible: We like the business from a credit perspective and believe it's a good fit for us, and we've been growing it to right-size for the size of our company rather than People's United size of what they had when we first got it. Those three are really our core ones that we have. Everything else is relatively small, but we feel very comfortable in growing what we have.

Speaker #4: And we've been growing it to the right size for the size of our company, rather than the people size that they had when we first got it.

Speaker #4: So, those three are really our core ones that we have. Everything else is relatively small, but we feel very comfortable in growing what we have.

Gerard Cassidy: Very good. Speaking of growth, I think you touched on in your comments that commercial real estate mortgages in March started to pick up, or if I heard that correctly. Can you expand upon what you're thinking for commercial real estate lending? C&I lending, of course, many investors anticipate that will continue to do well as capital expenditures hopefully continue to grow this year. On the CRE side, what are you guys seeing there, and what's kind of the outlook there?

Speaker #8: Very good . And speaking of growth , I think you touched on in your comments that commercial real estate mortgages in March started to pick up , or if I heard that correctly , can you expand upon what you're thinking for commercial real estate lending ?

Speaker #8: CNI lending, of course, many investors anticipate that will continue to do well as capital expenditures hopefully continue to grow this year.

Speaker #8: But on the CRE side, what are you seeing there, and what's the outlook there?

Daryl Bible: Yeah. When you look at our CRE business, Gerard, we have a really great platform. We have one of the best, I believe, in the industry. We have five distinct business lines that we have in CRE. First one is kind of core to us. It's our regional portfolio from a CRE perspective, and that's been shrinking for a while. We are now very active in the markets in those regions, generating more production there, and seeing a lot of really nice things happen. We believe our regional businesses will continue to grow from that perspective. Several years ago, we got into the originate and sell business with RCC. RCC is a great other way of serving our clients. You have to remember, we do a business with clients on balance sheet and off balance sheet.

Speaker #4: Yeah , so when you look at our CRE business , we have a really great platform . We have one of the best , I believe , in the industry and we have five distinct business lines that we have in CRE .

Speaker #4: Our first one is kind of core to us. It's our regional portfolio from a CRE perspective, and that's been shrinking for a while.

Speaker #4: We are now very active in the markets in those regions, generating more production there and seeing a lot of really nice things happen.

Speaker #4: So we believe our regional businesses will continue to grow from that perspective . We got , you know , several years ago , we got into the originating cell business with RCC .

Speaker #4: RCC is a great other way of serving our clients. You have to remember, we do business with clients on balance sheet and off balance sheet.

Daryl Bible: Last year, we had the same amount of originations in 2025 in RCC as we had on balance sheet. We're serving a lot of clients. Just some of it doesn't go on the balance sheet, but we still get paid for it in fee income. That business continues to perform very well. Last year, it had record performance. We also have the institutional CRE business that we talked about in REITs. That's been growing very nicely for us. That will continue to grow. Some of the new ones that we have formed is we've gotten really serious and have a whole business line dedicated to affordable housing. Affordable housing tends to be a more complicated type underwriting. We thought putting everything together there, we'll be able to generate more consistent volume and build good relationships with many customers throughout our footprint.

Speaker #4: Last year, we had the same amount of originations in 2025 and RGC as we had on balance sheet. So we're serving a lot of clients.

Speaker #4: Just some of it doesn't go on the balance sheet, but we still get paid for it in fee income. And that business continues to perform very, very well.

Speaker #4: Last year it had record performance. We also have the institutional CRE business. We talked about it in REITs. That's been growing very nicely for us.

Speaker #4: That will continue to grow. Some of the new ones that we have formed is we've gotten really serious and have a whole business line dedicated to affordable housing. Affordable housing tends to be a more complicated type underwriting.

Speaker #4: We thought putting everything together there, we’d be able to generate more consistent volume and build good relationships with many customers throughout our footprint.

Daryl Bible: Lastly, we have the warehouse business, which is also a nice business to have. I would say that our platform that we have in CRE and how we perform, our leaders that we have there are the best in the business, and we feel really positive that that's going to continue to grow, and you're going to see loan growth net out of that. Also remember, we're making a lot of fee income, too. It's a much bigger business than just the balance sheet. It's a combination of both of that.

Speaker #4: And then lastly , we have the warehouse business , which is also a nice business to have . So I would say that our platform that we have in CRE and how we perform our leaders that we have there are the best in the business and we feel really positive that that's going to continue to , to grow .

Speaker #4: And you're going to see loan growth net out of that, but also remember, we're making a lot of fee income too.

Speaker #4: So it's a much bigger business than just the balance sheet. It's a combination of both of that.

Gerard Cassidy: That's very helpful. And then just lastly, you've done a very good job in bringing down those criticized loans in CRE from a year ago. You showed that in your slides, of course. What were the factors of the success? Is it the customers are paying down their balances? Cash flows have improved? What have been some of the drivers of this nice decline in CRE criticized loans?

Speaker #8: That's very helpful. And then just lastly, you've done a very good job in bringing down those criticized loans in CRE from a year ago.

Speaker #8: You showed that in your slides. Of course. And can you say what were the factors of the success? Is it that the customers are paying down their balances?

Speaker #8: Cash flows have improved. What have been some of the drivers of this nice decline in CRE criticized loans?

Daryl Bible: It's broad-based. We've definitely seen improvement in operating. Some people are paying off and going elsewhere as well. It's a combination thereof. It's nice to see good progress there, and we're making more and more customers and having more capacity. For us, the improvement in credit quality has a nice driver for us that we feel comfortable that we can continue to bring down our capital levels, and you see that in our share repurchases.

Speaker #9: You know, it's broad-based.

Speaker #4: We've definitely seen improvement . You know , and operating . But some people are paying off and going elsewhere as well . So it's a combination thereof .

Speaker #4: But it's nice to see good progress there . And you know , we're making more and more customers and having more capacity . And for us , you know , the improvement in credit quality has a nice driver for us that we feel comfortable that we can continue to bring down our our capital levels .

Gerard Cassidy: Great. Thank you again.

Speaker #4: And you see that in our share repurchases.

Daryl Bible: Yeah.

Speaker #8: Great. Thank you again.

Operator: Thank you. Our next question comes from Matt O'Connor with Deutsche Bank. Your line is now open.

Speaker #10: Yep

Speaker #2: Thank you. Our next question comes from Matt O'Connor with Deutsche Bank. Your line is now open.

Nate Stein: Hey, everyone. This is Nate Stein on behalf of Matt O'Connor. I wanted to drill down on the CRE comments. We heard you say that commercial real estate originations picked up in March, but is it fair to say that CRE loan balances can grow in Q2 and beyond?

Speaker #11: Hey everyone. This is Nate Stein on behalf of Matt O'Connor. I wanted to drill down on the CRE comments. We heard you say that commercial real estate originations picked up in March, but is it fair to say that CRE loan balances can grow in Tokyo and beyond?

Daryl Bible: I've been saying that for a couple of quarters, Nate. You probably don't believe me anymore, so I'm not going to really commit to that. What I will tell you is we have a lot of momentum. We are growing. We're getting more customers. Whether we grow average or point-to-point Q2, I'm not concerned about that. I know it's going to grow this year. We got everything going in the right direction. Our teams are working hard, but they're having fun. I mean, they're actually fun out there working with customers and working on developing on these projects. We will have a very successful, great business, and it'll be very positive from a revenue perspective, both fees and balances.

Speaker #9: You know , I've .

Speaker #4: I've been saying that for a couple of quarters, so, you know, you probably don't believe me anymore. So I'm not going to really commit to that.

Speaker #4: But what I will tell you is we have a lot of momentum. We are growing. Are we getting more customers? You know, whether we grow average or point to point, second quarter?

Speaker #4: I'm not concerned about that . I know it's going to grow this year . We got everything going in the right direction . Our teams are working hard , but they're having fun .

Speaker #4: I mean , they're actually fun out there working with customers and working on developing on these projects . And you know , we will have a very successful , great business and it will be very positive from a revenue perspective , both fees and balances

Nate Stein: Okay. Thank you. Quick question on maybe just the use of excess capital. Q1 buybacks were really strong, more than double the quarterly pace in the H2 of last year. We heard your comments that the rules proposals are directionally supportive of capital. How could this translate to the pace of buybacks for the rest of the year?

Speaker #11: Okay . Thank you . And then quick question on the maybe just the use of excess capital . So one . Q buybacks are really strong , more than double the quarterly pace in the second half of last year .

Speaker #11: And we heard your comments that the rules proposals are directionally supportive of capital. So, how could this translate to the pace of buybacks for the rest of the year?

Daryl Bible: What we did is we widened the range. We went from 10.5% to 10.25% to 10.5% to 10%. The reason we widened the range is that we continue to have really good improvement in asset quality. We feel comfortable our long-term CET1 ratio that the board approved for the company is 10%. We feel comfortable going there at that point now. The reason we left 10.5% out there is there is a lot of risk in the system, a lot of geopolitical risk. We have no idea what's going to happen and all that. If we see signs of stress out in the marketplace or whatever, we'll just stop buyback and accrete capital. On any given quarter, if we don't do share repurchases net of dividend, we're still accrete back about 25 basis points. We can accrete it back very quickly.

Speaker #9: You know what we did is we widened.

Speaker #4: The range . You know , we went from ten and a half to ten and a 9:45 and a half to ten . You know , and the reason we widened the range is that we continue to have really good improvement in asset quality .

Speaker #4: So we feel comfortable our long-term CET1 ratio that the board approved for the company is 10%. We feel comfortable going there at that point.

Speaker #4: Now, the reason we left ten and a half out there is there was a lot of risk in the system. A lot of geopolitical risk.

Speaker #4: We have no idea what's going to happen and all that. You know, if we see signs of stress out in the marketplace or whatever, we'll just stop buyback and accrete capital on any given quarter.

Speaker #4: If we don't do share repurchases, net of dividend, we're still back about 25 basis points. So we can accrete it back very quickly.

Daryl Bible: Right now, we feel very good, and we're going to continue to move our ratios down. If we see something that we don't like, we will stop and pause and start accreting capital back.

Speaker #4: But right now we feel very good . And we're going to continue to to move our ratios down . And if we see something that we don't like , we will stop and pause .

Speaker #4: And, you know, assert and creating capital back.

Nate Stein: Thank you.

Operator: Thank you. We'll go next to Chris McGratty with KBW. Your line is now open.

Speaker #11: Thank you

Speaker #2: Thank you. We'll go next to Chris McGratty with KBW. Your line is now open.

Chris McGratty: Good morning.

Daryl Bible: Morning.

Chris McGratty: How you doing? I'm interested in your comments on deposit competition. I don't think you've touched on it yet, but maybe any specific geographies or markets given the industry's putting up a little bit better loan growth? Thanks.

Speaker #12: Good morning . Hey , Dawn , I'm interested in your comments on deposit competition . I don't think you touched on it yet , but maybe any specific geographies or markets given , you know , the industry's putting up a little bit better loan growth .

Daryl Bible: Yeah. Chris, we have a lot of ability to grow customer deposits. I mean, we've been growing customer deposits pretty consistently for many, many years. We always want to pay competitive rates to our customers. We aren't usually the highest in the market, definitely not the lowest in the market. We definitely get our fair share and all that. I wouldn't view the competition any worse than what it's been in any other environment, to be honest with you. It's always competitive. We get our fair share of those deposits. We had nice growth this past quarter. I think that's going to continue throughout the whole year. Net net, in my prepared remarks, we actually have grown customer deposits more than we've grown loans the last couple of years. We will continue to do that if we have to and continue to shrink non-core funding.

Speaker #12: Thanks .

Speaker #4: Yeah . You know , Chris , you know , we we have a lot of ability to grow customer deposits . I mean , we've been growing customer deposits pretty consistently .

Speaker #4: You know , for , for many , many years . And , you know , we always want to pay competitive rates to our customers .

Speaker #4: We aren't usually the highest in the market . Definitely not the lowest in the market , but we definitely get our fair share and , and all that .

Speaker #4: I wouldn't view the competition any worse than what it's been in any other environment, to be honest with you. It's always competitive.

Speaker #4: But you know , you know , we get our fair share of those deposits . So , you know , we had nice growth this past quarter .

Speaker #4: I think that's going to continue throughout the whole year. Net-net, on my prepared remarks, we actually have grown customer deposits more than we've grown loans in the last couple of years.

Speaker #4: And we will continue to do that if we have to . And continue to shrink . Non-core funding . So , you know , I would say , you know , we're competitive and we're growing and doing a nice thing .

Daryl Bible: I would say, we're competitive and we're growing and doing a nice thing. One of the things about M&T that's really important and really what we're true to is all of our businesses want to get the operating account, get the checking account, and work really, really hard to do that. Once we get that operating account, then that opens the door for other businesses and increases the wallet of what we can do with that customer. Everybody is fully incented to get that. One of our businesses, Business Banking, has a ratio of three times more deposits than loans. Of the deposits they have, 80% of them are operating, which is really, really strong. They're having a tremendous business. I mean, they're growing their deposits. They have huge loan pipelines as well right now.

Speaker #4: One of the things about M.A. that's really important and really what we're true to is all of our businesses first start to get.

Speaker #4: They want to get the operating account , get the checking account and work really , really hard to do that . Once we get that operating account , then that opens the door for other businesses and increases the wallet of , of what we can do with that customer .

Speaker #4: So everybody is fully incented to , to get that . And , you know , one of our businesses , business banking , you has a ratio of three times more deposits than loans .

Speaker #4: And of those deposits , they have , 80% of them are operating , which is really , really strong . You know , and they're having a tremendous business .

Speaker #4: I mean , they're growing , their deposits . They have huge loan pipelines as well . Right now , business banking is probably performing as good as I've ever seen it .

Daryl Bible: Business Banking is probably performing as good as I've ever seen it, to be honest with you.

Chris McGratty: Okay. Great commentary. Thank you. On credit spreads, obviously, different asset classes, but any comments about incremental credit spreads, whether it be CRE and your increased originations or C&I spreads? Thanks.

Speaker #4: To be honest with you.

Speaker #12: Okay . Very great commentary . Thank you . And then on credit spreads , obviously different asset classes , but any comments about , you know , incremental credit spreads , you know , whether it be CRE and your increased originations or CNI spreads .

Daryl Bible: Credit spreads are moving around a little bit. With the conflict in Iran, they probably widened out a touch a little from that perspective. It's also very competitive. Sometimes it's a little wider, sometimes a little narrower. It's probably net about the same would be my take right now. We try to be competitive, and we want to make sure we get paid for the risk that we're taking at the end of the day.

Speaker #12: Thanks .

Speaker #4: You know , credit spreads are moving around a little bit with the conflict in Iran . They probably widened out a touch a little from that perspective .

Speaker #4: But it's also a very competitive . So I , you know , sometimes it's a little wire , sometimes a little narrower . It's probably net net about the same would be my take right now .

Speaker #4: But, you know, we try to be competitive and, you know, want to make sure we get paid for the risk that we're taking.

Chris McGratty: Great. Thank you.

Speaker #4: At the end of the day

Operator: Thank you. Our next question comes from Ken Usdin with Autonomous Research. Your line is now open.

Speaker #12: Great . Thank you

Speaker #2: Thank you. Our next question comes from Ken Usdin with Autonomous Research. Your line is now open.

Ken Usdin: Thanks. Hey, Daryl. Just as you talk about the fee growth and the high ends of the year, I know Q1 had the BLG benefit. Can you just flesh out a little bit more about your thoughts about the magnitude of those mortgage servicing books that you think you can bring on? How big of an opportunity is that? Just give it a little more color on where you expect fees to grow? Thanks.

Speaker #13: Thanks . Hey , Darryl . Just as you as you talk about the the fee growth and the high end for the year , you know , the first quarter had the big benefit , but can you just flush out a little bit more about your thoughts about the magnitude of those mortgage servicing books that you think you can bring on and how big of an opportunity is that ?

Speaker #13: And just give a little more color on where you expect fees to grow. Thanks.

Daryl Bible: Yeah. We have tremendous momentum in our fee businesses, Ken. We have a really good, great specialized sub-servicing business that really specializes in more FHA, because we get paid a little bit more because it's higher to service from that perspective. We think that other additional servicing will start to come back onto our run rate in H2 of the year with an annual run rate in the $30 to 40 million range from a revenue perspective. It operates with about a 50% margin. It's a really good piece of business for us, something that we like to do and have there. We're also seeing really good growth in our trust businesses, both wealth and corporate trust. Our corporate trust also brings in nice deposits. That's going on really well.

Speaker #4: Yeah . So we have tremendous momentum , you know , in our fee business as Ken and , you know , we have a really good , great specialized self-servicing business that really specializes in More FHA because we get paid a little bit more because it's higher to service from that perspective , you know , we think that other additional services will start to come back on to our run rate in the second half of the year .

Speaker #4: With an annual run rate in the $30 to $40 million range. From a revenue perspective, it operates with about a 50% margin.

Speaker #4: So it's a really good piece of business for us, something that we like to do and have there. But we're also seeing really good growth in our trust businesses, both wealth and corporate trust, and corporate trust also brings in nice deposits.

Daryl Bible: If you look in our commercial area, treasury management is performing really well, high single-digit growth in that space. If you look at our capital markets, though we're at a very low base, capital markets fees are continuing to increase. Now that we have our general ledger converted over this past weekend, our accounting team, finance folks will work on getting that broken out, so you guys will see that in the next quarter or two from that perspective. Really feel that our fees are going to continue to outperform. My guess, Ken, to be honest with you, is we may actually exceed our range that we have there and all that. We've got a lot of good things going on.

Speaker #4: That's going on really well . If you look in our commercial area , treasury management is performing really well . High single digit growth in that space .

Speaker #4: And then if you look at our capital markets , though , we're at a very low base capital market fees are continuing to increase and now that we have our general ledger converted over this past weekend , you know , our accounting team , finance folks will work on getting that broken out .

Speaker #4: So you guys will see that in the next quarter or two from that perspective . So really feel that our fees are going to continue to outperform , you know , my guess , Ken , to be honest with you is we may actually exceed our range that we have there .

Speaker #4: And all that. So we've got a lot of good things going on.

Ken Usdin: Got it. Okay. You mentioned that your avenues for deposit growth are really strong and you've been kind of outstripping the loans. I guess with that, your decision tree between, especially in a higher-for-longer environment, leaving some of that money in cash or putting it into the securities book, it looks like you're biased towards the securities book. Can you kind of just remind us where you want that to live and how you expect that to go? Thanks.

Speaker #13: Got it . Okay . And then you mentioned that your , you know , your avenues for deposit growth are really strong and you've been kind of outstripping the loans .

Speaker #13: So I guess with that , you know , your , your , your decision tree between , especially in a higher , longer environment , leaving some of that money in cash or putting it into securities book , it looks like your , your bias towards a book .

Speaker #13: And you just remind us where you want that to live, and how you expect that to go. Thanks.

Daryl Bible: Yeah, it was just more of a little bit more fine-tuning of the balance sheet. We thought we had a little bit ability to have a little bit less cash at the Fed, and that we put a little bit more in the securities portfolio. Just means we'll do a little bit less hedging because we have more fixed-rate assets on our balance sheet. It's pretty much still a real neutral interest-rate risk position. I think we're positioned pretty well, rates going either direction. We will continue to do what we do from that perspective.

Speaker #4: Yeah , I was just more of a little bit more fine tuning of the balance sheet . You know , we thought we had a little bit of ability to have a little bit less cash at the fed and that we put a little bit more in the securities portfolio just means we'll do a little bit less hedging because we have more fixed rate assets on our balance sheet .

Speaker #4: So it's pretty much still a real neutral interest rate risk position. I think we're positioned pretty well—rates going either direction.

Speaker #4: And you know, we will continue to do what we do from that perspective.

Ken Usdin: Okay, right. Thanks, Daryl.

Speaker #13: Okay. Right. Thanks, Erin.

Daryl Bible: Yep.

Operator: Thank you. Our next question comes from John Pancari with Evercore ISI. Your line is now open.

Speaker #2: Thank you. Our next question comes from John Pancari with Evercore ISI. Your line is now open.

John Pancari: Morning, Daryl.

Daryl Bible: Morning.

Speaker #14: Morning , Darryl .

John Pancari: I know you indicated in your prepared remarks some selectivity in underwriting in certain areas. What are you seeing right now that's making you say that? Is it on pricing? Is it terms? What areas are you seeing returns pressured in a certain asset class, certain lending product where you've decided to be more selective?

Speaker #10: Good morning

Speaker #14: I know you indicated in your prepared remarks some selectivity in underwriting in certain areas. What are you seeing right now that's making you say that?

Speaker #14: Is it on pricing? Is it terms? And then, what areas are you seeing returns pressured—in a certain asset class, a certain lending product—where you've decided to be more selective?

Daryl Bible: Yeah, it's really competitive on the lending side, both commercial, consumer, CRE. I mean, it's competitive across the board over there. As we talk to our leaders out there and our people are out there talking to customers and whatever, I probably leaned a little bit more to structure than to pricing, but maybe 60/40, a little bit more tilt to structure. Structure is not something you really want to give on, to be honest with you. Maybe for good customers, you'll stretch on a pricing perspective from that perspective. It's just competitive out there, and we aren't in any hurry to put a lot of loans on our books. We're going to do it the right way, and we're going to make sure we get paid back and have good earning streams.

Speaker #10: Yeah .

Speaker #4: So it's really competitive on the lending side , you know , both commercial consumer , CRM , it's competitive across the board from what we're there , there as we talk , you know , to our , our leaders out there and our people out there talking to customers and whatever , I probably leans a little bit more to structure than to pricing , but maybe 60 , 40 , you know , a little bit more tilt to structure .

Speaker #4: And , you know , structure is not something you really want to give on , to be honest with you . You know , maybe for good customers , you're stretch on a pricing perspective .

Speaker #4: From that perspective , but you know , it's just competitive out there . And , you know , we aren't in any hurry to put a lot of loans on our books .

Speaker #4: We're going to do it the right way and we're going to make sure we get paid back and have good earnings streams . I mean , if you look at our performance , we're performing really well and we're generating a lot of capital and returning a lot of that back to to you and the other investors out there .

Daryl Bible: I mean, if you look at our performance, we're performing really well, and we're generating a lot of capital and returning a lot of that back to you and the other investors out there. We aren't really under any pressure. We're trying to do the right things in the marketplace and continue to be in here for the long term, which is what you'd expect out of M&T.

Speaker #4: So , you know , we aren't really under any pressure . We're trying to do the right things in the marketplace . And continue to be in here for the long term , which is what you'd expect out of MMT

John Pancari: Got it. All right. Thanks. I appreciate all the capital color and the commentary around the CET1 range, I mean, in the buyback side. I guess on the M&A side, can you maybe just give us updated thoughts there? Just given the backdrop, given the activity we're seeing out there, maybe you could just update us on where you stand in terms of M&A interest, both bank and non-bank.

Speaker #14: Got it . All right . Thanks . And then I appreciate all the capital color and the commentary around the around the city .

Speaker #14: Range and the M&A . I mean , in the buyback side , I guess on the M&A side , can you maybe just give us updated thoughts there ?

Speaker #14: Just giving it a backdrop, given the activity we're seeing out there, maybe you could just update us on where you stand in terms of M&A interest.

Daryl Bible: Yeah, I think the nice thing to know is that M&T is very consistent. We have a long history and track record on M&A and shareholder returns, and you can judge that for yourself. Look, on an M&A front, we've always been very selective, anything we consider that we'll meet both our strategic, which means it's in footprint, as well as our financial criteria. We will continue to focus and run the company really well within the market conditions that we have, and if something fits from an M&A perspective, we will consider doing that. We aren't going to stretch or do anything from that perspective. There's no need to.

Speaker #14: Both bank and non-bank ?

Speaker #4: Yeah, you know, I think the nice thing to know is that M&T is very consistent. You know, we have a long history and track record on M&A and shareholder returns.

Speaker #4: And you can judge that for yourself . But on an M&A front , you know we've always been very selective . And anything we consider that , you know is will meet both our strategic which means it's in footprint as well as our financial criteria .

Speaker #4: You know , we will continue to focus and run the company really well within the market conditions that we have . And if something fits from an M&A perspective , you know , we will consider doing that .

Speaker #4: But we aren't going to stretch or do anything from that perspective. There's no need to.

John Pancari: Got it. All right. Thank you, Daryl.

Daryl Bible: Yep.

Speaker #14: Got it. All right. Thank you, Daryl.

Operator: Thank you. We'll go next to Ebrahim Poonawala with Bank of America Securities. Your line is now open.

Speaker #10: Yep

Speaker #2: Thank you. We'll go next to Ibrahim Poonawala with Bank of America Securities. Your line is now open.

Ebrahim Poonawala: Hey, good morning, Daryl.

Daryl Bible: Good morning.

Ebrahim Poonawala: I guess maybe this first question, you talked about the GL update. I think it gets completed this year. Just give us a sense of what the tech spend and what projects are upcoming over the next year or two after this as we think about just infrastructure upgrade at the bank.

Speaker #15: Hey . Good morning .

Speaker #10: Good morning .

Speaker #15: I guess maybe just the first question. You talked about the GR update. I think it gets completed this year. Just give us a sense of what the tech spend is and what projects are upcoming over the next year or two after this.

Speaker #15: As we think about just infrastructure upgrade at the bank?

Daryl Bible: Yeah. Ebrahim, you give me an opportunity to call out. We actually went live on our general ledger this past weekend. It's performing really well, and that's pretty much behind us. Hats off to the team that actually put that together. We had hundreds of people working on that with technology, business people, and finance folks and all that. We had a great partner with EY that was with us for the three years and did a great job getting us to where we needed to be from that perspective. As far as tech spend goes, tech spend just gets reallocated to another priority project. Our priority projects that we have right now for this year is teaming for growth, which is more getting deeper wallet from our customers and our regions.

Speaker #10: Yeah .

Speaker #4: Ibrahim , you give me an opportunity to call out , we actually went live on our general ledger this past weekend . It's performing really well and that's pretty much behind us .

Speaker #4: But you know, hats off to the team that actually put that together. We had hundreds of people working on that, with technology, business people, and finance folks and all that.

Speaker #4: And we had a great partner with NY that was with us for the three years and did a great job getting us to where we needed to be.

Speaker #4: From that perspective , you know , as far as tech spend goes , you know , tech spend just gets reallocated to another priority project .

Speaker #4: You know, our priority projects that we have right now for this year is teaming for growth. You know, which is more getting deeper wallet from our customers and our regions.

Daryl Bible: Operational excellence is really working on all the operational areas that we have and trying to simplify and automate it using AI and other automation tools and all that. We're off to a good start. We plan to continue to invest in that. That's going to be a multi-year project. As things fall off, like our general ledger, we have other things that just kind of fill in the space. We have a really good process of how we do our planning. We kind of know what we want to spend and how we allocate it, and it seems to be working really well. Balancing our returns, which are still good for the investors as well as still getting a lot done in the company, it's a good balance there, and we're having a lot of success.

Speaker #4: But team operational excellence is really working on all the operational areas that we have and trying to simplify it, and automate it.

Speaker #4: You know , using AI and other automation tools and , and all that . And we're off to a good start . You know , we plan to continue to invest in that .

Speaker #4: And that's going to be a multi-year project. So as things fall off, like our general ledger, we have other things that just kind of fill in the space.

Speaker #4: And , you know , we have a really good process of how we do our planning . You know , we kind of know what we want to spend and how we allocate it .

Speaker #4: And it seems to be working really well . And , you know , balancing our returns , which are still good for the investors as well as still getting a lot done in the company .

Speaker #4: It's a good balance there, and we're having a lot of success.

Ebrahim Poonawala: Got it. That's helpful, Daryl. Just a follow-up on the capital. It's not unique to M&T, but the roughly 100 basis points benefit that you could get from these proposals if more or less they get firmed up this way, how do you think about if these rules go effective, I'm not sure is it 01 January 2027 or 01 January 2028? How do you think about that 100 basis points in a world where your CET1 target ratio remains the same? Because I know you mentioned the rating agencies, but do you start getting more active on buybacks? I'm just wondering how should we think about the deployment of that 100 basis points where you would have the green signal to start thinking about that as truly excess capital?

Speaker #15: Got it . That's helpful . And just a follow up on the capital . It's not unique to M-A , but the roughly 100 basis points benefit that you could get from these proposals if more or less , they get firmed up this way .

Speaker #15: How do you think about if these rules go effective? I'm not sure. Is it first Jan '27 or first Jan '28?

Speaker #15: How do you think about that 100 basis points, in a world where your CET1 target ratio remains the same, means? I know you mentioned the rating agencies, but do you start getting more active on buybacks?

Speaker #15: I'm just wondering, how should we think about the deployment of that 100 basis points, where you would have the green signal to start thinking about that as truly excess capital?

Daryl Bible: I think we just have to wait till we get there. It's kind of dodging the question, Ebrahim, but I think we just have to see what the actual results are after we go through the comment period and what gets passed. It's definitely in the right direction, the RWAs with the LTVs. We're a really conservative lender. We have a huge lift because of our LTVs. Take advantage of that. That will continue to be core to us from that. It's too early to really say how we're going to deploy that capital and all. We want to serve all constituencies, and we'll try to figure that out as we know more down the road.

Speaker #10: You... I think we...

Speaker #4: Just have to wait till we get there . I don't it's kind of dodging the question . Ibrahim . But , you know , I think we just have to see what the actual results are after we go through the comment period and what gets passed .

Speaker #4: You know , it's definitely in the right direction . The RWA , you know , with the Ltvs , you know , we're really conservative lender .

Speaker #4: We have a huge lift because of our LTVs, so take advantage of that. That will continue to be core to us. From that.

Speaker #4: But it's too early to really say how we're going to deploy that capital and all. We want to serve all constituencies, and we'll try to figure that out.

Ebrahim Poonawala: Anything in there in the comment period, Daryl, that you expect to advocate where you think either technically or something that may not quite truly reflect the risk of the balance sheet in the way the Fed proposed these rules?

Speaker #4: As we move further down the road,

Speaker #15: And anything in there—in the comment period—that you expect to like, advocate, where you think either technically, or something that may not quite truly reflect the risk of the balance sheet in the way the Fed proposed these rules.

Daryl Bible: No, I think it's a fair assessment of what they went through. They went through with data-driven and came up with RWAs for standardized that directionally seem in the right direction. From the other approach that's out there, the enhanced approach, there's definitely a good advantage to move forward for us because of our LTVs that we have. The other thing we have, if you look at our fee businesses, if those fee businesses stay to be favored, our Wilmington Trust businesses basically benefit from that as well. From our perspective, we seem to have a good business mix that's actually really benefit from what we're seeing right now.

Speaker #4: Now, I think it's a fair assessment of what they went through. They went through with data-driven and came up with RWAs for standardized.

Speaker #4: That , you know , directionally seem seem in the right direction . And , you know , from the the other approach that's out there , enhanced approach , you know , there's definitely a good advantage to move forward for us because our lives that we have .

Speaker #4: And the other thing we have , if you look at our fee businesses , you know , if those fee businesses stay to be favored , our Wilmington Trust business is , you know , basically benefit from that as well .

Speaker #4: So from , from our perspective , we seem to have a good business mix that actually really benefit from , from what we're seeing right now .

Ebrahim Poonawala: Got it. Thank you.

Daryl Bible: Thank you.

Speaker #15: Got it. Thank you.

Operator: Thank you. We'll go next to David Chiaverini with Jefferies. Your line is now open.

Speaker #4: Thank you .

Speaker #2: Thank you. We'll go next to David Chiaverini with Jefferies. Your line is now open.

[Equity Research Associate] (Jefferies): Hey, guys. Brooks starting on for Dave today. I just wanted to touch on deposit betas going forward. You guys reported a 56% beta through the cycle so far. How much additional beta do you guys expect if rates stay higher for longer? If you guys could please touch on a modest curve steepening or lower short-term rates and how that would translate through NIM and NII given your current balance sheet positioning. Thank you.

Brooks Dutton: Hey, guys. Brooks starting on for Dave today. I just wanted to touch on deposit betas going forward. You guys reported a 56% beta through the cycle so far. How much additional beta do you guys expect if rates stay higher for longer? If you guys could please touch on a modest curve steepening or lower short-term rates and how that would translate through NIM and NII given your current balance sheet positioning. Thank you.

Speaker #16: Hey guys. Brooks Dutton on for Dave today. I just wanted to touch on deposit betas going forward. You guys reported a 56% beta through the cycle so far.

Speaker #16: How much additional beta do you guys expect if rates stay higher for longer? And if you guys could please touch on a modest curve steepening or lower short-term rates and how that would translate through NIM and NII.

Daryl Bible: Yeah. The way I try to simplify this is when rates were going up, we had a deposit beta in the low to mid-50s. Rates are coming down. Right now, we're in the mid-50s coming down. We'll probably stay in the low to mid-50s coming down. At some point, if you go down maybe 50 to 100 basis points more, the consumer portfolio basically hits a floor, and then that beta starts to shrink. We're still a ways away from that. It's not rocket science. It should go up as much as it goes down if you're really disciplined in how you price these deposits.

Speaker #16: Given your current balance sheet positioning. Thank you.

Speaker #4: Yeah . You know , the way I try to simplify this is when rates were going up . You know , we had a deposit beta in the low to mid 50s .

Speaker #4: Rates are coming down . You know , right now we're in the mid 50s coming down . You know we'll probably stay in the low to mid 50s coming down at some point .

Speaker #4: You know, if you go down maybe 50 to 100 basis points more, then the consumer portfolio basically hits the floor. And then that beta starts to shrink.

Speaker #4: But we're still a ways away from that. But, you know, it's not rocket science. It should go up as much as it goes down.

Speaker #4: If you're really disciplined on how you price these deposit deposits

[Equity Research Associate] (Jefferies): Great. Thank you very much.

Brooks Dutton: Great. Thank you very much.

Daryl Bible: Yeah.

Speaker #16: Great. Thank you very much.

Operator: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to our presenters for any additional or closing remarks.

Speaker #17: Yep

Speaker #2: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to our presenters for any additional or closing remarks.

Rajiv Ranjan: Again, thank you all for participating today. As always, if any clarification is needed, please contact our investor relations department at 716-842-5138. Thank you all.

Speaker #3: Again , thank you all for participating today . And as always , if any clarification is needed , please contact our Investor Relations Department at (716) 842-5138 .

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Speaker #3: Thank you all

Q1 2026 M&T Bank Corp Earnings Call

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