M&T Bank Corp.

The stable outlook reflects our view that--over at least the next two years--M&T will maintain solid financial performance, largely in line with similarly rated peers and avoid a sharp deterioration in asset quality. CRE loan exposures could rise modestly over time because of new loan activity, but we expect exposures to remain below recent peaks as a percentage of loans and capital. We expect capital ratios to decline gradually from currently elevated levels but remain slightly above peer medians. We could lower the ratings if asset quality metrics deteriorate substantially, particularly if that prompts a sharp increase in provisions for credit losses, eroding earnings or capital ratios. For instance, we would view a substantial rise in higher risk loan exposures

...S&P Global Ratings views M&T Bank Corp. (M&T)'s solid market position in the mid-Atlantic region and good earnings generation favorably. We have a favorable view of M&T's footprint in the Northeast and Mid-Atlantic regions, with top 10 positions in several of the markets within its 12-state franchise. M&T's earnings generation and consistency are good, aided by its historically low loan losses and satisfactory contribution from noninterest revenue. We expect the company's net interest margin (NIM) to remain solid and above most peers'. We view M&T's noninterest revenue as adequate. However, in part due to its higher NIMs, noninterest revenue compares unfavorably with many similarly rated large regional banks as a percentage of total revenue, leaving it more reliant on net interest income for earnings. Certain M&T capital ratios are modestly higher than some other large U.S. regional banks, but we expect them to decline. We view favorably the company's capital ratios, which are somewhat...

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