M&T Bank Corp at Morgan Stanley Financials Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Manan Gosalia - Morgan Stanley - Analyst : <_ALACRA_META_ABSTRACT>That's great. We have a lot to look forward to. Yeah, maybe let's start with the environment. There's a significant focus on tariffs. So we've had some time to digest the announcements. We've had some positive headlines. Can you talk about what you're hearing from your customer base, are borrowers still on pause? Or are things picking up a little bit?

Question: Manan Gosalia - Morgan Stanley - Analyst : So it sounds like things are going the right way for loan growth, and we'll dig in a little bit more there. But from a credit perspective, is there anything you're specifically watching? I know you flagged industries like retail, trade, manufacturing, construction. Is there anything you're seeing there?

Question: Manan Gosalia - Morgan Stanley - Analyst : Are there any specific industries that you're talking about? Or is it more broad-based?

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Perfect. So before digging into some of these other topics that we had on the list, you released a slide deck last evening with some details on the guide quarter to date. Can you talk about some of the drivers for us?

Question: Manan Gosalia - Morgan Stanley - Analyst : Great. So lots to dig into. On the loan growth side, I know you called out positives in the consumer portfolio. Can you talk a little bit more about that?

Question: Manan Gosalia - Morgan Stanley - Analyst : So it sounds like that's not being impacted too much by the fact that the 10-year is up a lot.

Question: Manan Gosalia - Morgan Stanley - Analyst : So maybe while we're on the CRE side, M&T successfully reduced the CRE concentration. I think you're at about 136% as of last quarter. You've talked about being comfortable with this level of CRE. So how are you thinking about CRE originations from here? What are you seeing on the paydown front there?

Question: Manan Gosalia - Morgan Stanley - Analyst : Right. So when you say it takes about 12 to 18 months for these pipelines to come through, it's already been building for several quarters, that's why you see an uptick towards the back half of the year?

Question: Manan Gosalia - Morgan Stanley - Analyst : And what about on the C&I side, you noted that the sentiment is definitely moving in a positive direction. You're not seeing it just yet in the loan portfolio. How quickly can that change? And how quickly you can loans come on to the balance sheet?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. And how would you characterize the level of competition for both C&I and CRE?

Question: Manan Gosalia - Morgan Stanley - Analyst : And as I've spoken to some of the banks, some banks have spoken about spreads coming in a little bit. Some banks have spoken about more competition for new clients rather than existing clients. Is there anything nuance that you're seeing in your portfolio? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 11, 2025 / 11:30AM, MTB.N - M&T Bank Corp at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And where is this competition coming from? Is it other banks? Is it private credit? I know RenT wrote a lot about private credit in his annual letter. So can you talk about where you're seeing the competition coming from?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. And how do you think about the risk there? So I know it's diversified amongst more loans. But how do you underwrite that risk?

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Excellent. Maybe we can pivot over to deposits. I think you noted in your slide deck that the deposit trends are strong. I think you said deposits are moving higher quarter on quarter. What are the puts and takes across the different businesses, commercial, retail, wealth? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 11, 2025 / 11:30AM, MTB.N - M&T Bank Corp at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And you spoke about averaging a 50% deposit beta as rates come down. This is the first quarter where there is no impact from rate cuts. If we don't get more rate cuts anytime soon, how are you thinking about deposit costs from here?

Question: Manan Gosalia - Morgan Stanley - Analyst : So that's a great segue into net interest margins. Last quarter, I think your NIM was at about 3.66%. You're saying that NIM should be up Q on Q. There's some positive benefits coming from the loan growth side, even a little bit on the deposit side. I think by the end of the year, I don't know if you're ready yet to say you can go over 3.70%. I guess the question there is, what would need to happen for NIM to be below 3.70% at the end of the year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 11, 2025 / 11:30AM, MTB.N - M&T Bank Corp at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And with the higher value of the curve, that's clearly a positive from the fixed asset repricing story. Is there any level at which the volatility or if it moves even higher, does that become a headwind at some stage, maybe for loan growth or any other way for NII?

Question: Manan Gosalia - Morgan Stanley - Analyst : And just to be clear on that comment, when you're suggesting rates move higher or lower, you are talking about a barrel shift you would prefer steeper yield curve?

Question: Manan Gosalia - Morgan Stanley - Analyst :

Question: Manan Gosalia - Morgan Stanley - Analyst : All right, perfect. The other topic I wanted to hit on was fees. I think that's an underappreciated aspect of M&T. You previously highlighted opportunities in wealth, mortgage, treasury management. What do you see is the largest opportunity?

Question: Manan Gosalia - Morgan Stanley - Analyst : So I guess the three pillars there is wealth and trust, there's treasury management and there's mortgage. Wealth and trust treasury, there's momentum, there's core growth coming through there. On the mortgage side, that's a little bit more dependent on rates. Is that fair? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 11, 2025 / 11:30AM, MTB.N - M&T Bank Corp at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. Maybe pivoting over to expenses. Earlier in the quarter, you spoke about how M&T has seven key strategic projects going on, several of which have required hundreds of millions in aggregate investments. And I think you said three of these are close to completion?

Question: Manan Gosalia - Morgan Stanley - Analyst : Excellent. Let's pivot over to credit. You've seen several consecutive quarters of declines in criticized loans, especially on the commercial real estate side. I think you noted in your deck that there's more room in 2Q as well. With the volatility in the belly of the curve, what impact is that having on CRE paydowns and criticized assets? And how do you see that evolving from here? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 11, 2025 / 11:30AM, MTB.N - M&T Bank Corp at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And are there any risks that you're seeing on the credit side overall?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. I'm going to come to the audience in just a sec, but maybe we can talk about capital a little bit. M&T is in a pretty strong capital position, 11.5% CET1, I think AOCI is actually a marginal benefit for you. You've talked about getting to 11% this year, 10% at some point after that. How are you thinking about that evolution of capital as we go through this year and next?

Question: Manan Gosalia - Morgan Stanley - Analyst : I was just going to say with -- you guys have created about $400 million of capital each quarter after dividends. Last quarter's buyback was about $660 million. 11% is still a long way off. I mean, how aggressive do you think you can be through this year on the buyback front? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. JUNE 11, 2025 / 11:30AM, MTB.N - M&T Bank Corp at Morgan Stanley Financials Conference

Question: Manan Gosalia - Morgan Stanley - Analyst : And we have the CCAR results later this month. You've opted into the stress test this -- the CR. How are you feeling about the stressed capital buffer, clearly, you've taken actions to bring that down?

Question: Manan Gosalia - Morgan Stanley - Analyst : Got it. And as you think about the impact of the stress test results on capital management. As the SCB goes down, that gives you more confidence in that 10% CET1 number, is that how we should think about it?

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. I'll quickly see if there's any questions in the room. All right. Maybe we can discuss M&A a little bit. You've spoken about how M&T doesn't have any aspirations of being a national bank. Can you expand on that strategy a little bit? Why not consider opportunities outside your footprint? I mean, M&T has a brand, you have the products, the capital.

Question: Manan Gosalia - Morgan Stanley - Analyst : So is there anything you can -- you might want to do on the fees front? Is there anything you might want to build out there?

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Perfect. And then maybe to wrap up, last Friday, Michelle Bowman spoke about our priorities and a new role as Vice Chair for Supervision. [Tailoring], I noticed featured early on in that list. And there's several potential changes that investors are watching for. Can you talk a little bit about how you view that, how you view those priorities and what potential changes would impact M&T the most?

Question: Manan Gosalia - Morgan Stanley - Analyst : All right. Perfect. With that, we're out of time. Daryl, thanks so much for joining us.