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Fair value measurements | 6 Months Ended
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Jun. 30, 2026
Fair Value Disclosures [Abstract] |
Fair value measurements | 13. Fair value measurements GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. Effective January 1, 2026 the Company has elected to account for its residential mortgage loan servicing right assets at fair value. Further information about this election is included in note 1. The Company has not made any other fair value elections at June 30, 2026. Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability. •Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities. •Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market. •Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company's own estimates about the assumptions that market participants would use to value the asset or liability. When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. A description of the valuation methodologies used for the Company's assets and liabilities that are measured at fair value on a recurring basis and on a nonrecurring basis is included in notes 1 and 19 of Notes to Financial Statements in M&T's 2025 Annual Report. 13. Fair value measurements Recurring fair value measurements The following tables present assets and liabilities at June 30, 2026 and December 31, 2025 measured at fair value on a recurring basis.
(Dollars in millions) | Fair Value Measurements |  | Level 1 |  | Level 2 |  | Level 3
June 30, 2026 |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury | $ | 3,227 |  |  | $ | — |  |  | $ | 3,227 |  |  | $ | — |
Mortgage-backed securities: |  |  |  |  |  |  |
Government issued or guaranteed: |  |  |  |  |  |  |
Commercial | 4,755 |  |  | — |  |  | 4,755 |  |  | — |
Residential | 17,387 |  |  | — |  |  | 17,387 |  |  | — |
Other | 1 |  |  | — |  |  | 1 |  |  | — |
Total investment securities available for sale | 25,370 |  |  | — |  |  | 25,370 |  |  | — |
Equity securities | 245 |  |  | 245 |  |  | — |  |  | — |
Real estate loans held for sale | 515 |  |  | — |  |  | 515 |  |  | — |
Residential mortgage loan servicing rights | 540 |  |  | — |  |  | — |  |  | 540 |
Other assets | 332 |  |  | 13 |  |  | 315 |  |  | 4 |
Total assets | $ | 27,002 |  |  | $ | 258 |  |  | $ | 26,200 |  |  | $ | 544 |
Other liabilities | $ | 503 |  |  | $ | — |  |  | $ | 503 |  |  | $ | — |
Total liabilities | $ | 503 |  |  | $ | — |  |  | $ | 503 |  |  | $ | — |
December 31, 2025 |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury | $ | 6,343 |  |  | $ | — |  |  | $ | 6,343 |  |  | $ | — |
Mortgage-backed securities: |  |  |  |  |  |  |
Government issued or guaranteed: |  |  |  |  |  |  |
Commercial | 4,816 |  |  | — |  |  | 4,816 |  |  | — |
Residential | 12,042 |  |  | — |  |  | 12,042 |  |  | — |
Other | 1 |  |  | — |  |  | 1 |  |  | — |
Total investment securities available for sale | 23,202 |  |  | — |  |  | 23,202 |  |  | — |
Equity securities | 281 |  |  | 281 |  |  | — |  |  | — |
Real estate loans held for sale | 925 |  |  | — |  |  | 925 |  |  | — |
Other assets | 342 |  |  | 12 |  |  | 327 |  |  | 3 |
Total assets | $ | 24,750 |  |  | $ | 293 |  |  | $ | 24,454 |  |  | $ | 3 |
Other liabilities | $ | 454 |  |  | $ | — |  |  | $ | 454 |  |  | $ | — |
Total liabilities | $ | 454 |  |  | $ | — |  |  | $ | 454 |  |  | $ | — |
13. Fair value measurements The changes in fair value of residential mortgage loans servicing right assets for the three-month and six-month periods ended June 30, 2026 are presented in the following table.
(Dollars in millions) |  | Residential Mortgage Loan Servicing Rights (Level 3)
Three Months Ended June 30, 2026 |  |
Balance at March 31, 2026 — at fair value |  | $ | 542 |
Additions |  | 7 |
Changes in fair value included in Mortgage banking revenues (a) |  | (9) |
Balance at June 30, 2026 — at fair value |  | $ | 540 |
Six Months Ended June 30, 2026 |  |
Balance at December 31, 2025 — at amortized cost |  | $ | 287 |
January 1, 2026 - fair value accounting election |  | 263 |
Additions |  | 15 |
Changes in fair value included in Mortgage banking revenues (a) |  | (25) |
Balance at June 30, 2026 — at fair value |  | $ | 540 |
__________________________________________________________________________________ (a)Includes a $16 million and a $33 million reduction in fair value attributable to the realization of expected net servicing cash flows over time for the three-month and six-month periods ended June 30, 2026, respectively. Significant unobservable inputs used in the fair value measurement of residential mortgage loan servicing right assets vary by loan type and included prepayment assumptions and an OAS over market implied forward SOFR to determine an appropriate discount rate. An increase (decrease) in the prepayment speed and OAS each would generally result in a lower (higher) fair value measurement of residential mortgage loan servicing rights. The key economic assumptions used to determine the fair value of residential capitalized servicing rights at June 30, 2026 and the sensitivity of such value to changes in those assumptions are summarized in the table that follows. Those calculated sensitivities are hypothetical and actual changes in the fair value of capitalized servicing rights may differ significantly from the amounts presented herein. The effect of a variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another which may magnify or counteract the sensitivities. The changes in assumptions are presumed to be instantaneous.
(Dollars in millions) |
Weighted-average prepayment speeds (range 5% - 18%) | 8.00 | %
Impact on fair value of 10% adverse change | $ | (15) |
Impact on fair value of 20% adverse change | (30) |
Weighted-average OAS (range 5% - 20%) | 7.20 | %
Impact on fair value of 10% adverse change | $ | (15) |
Impact on fair value of 20% adverse change | (29) |
13. Fair value measurements Nonrecurring fair value measurements The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow. Loans Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of certain loans based on fair value measurements for partial charge-offs of the uncollectable portions of those loans. The following table summarizes loans subject to such nonrecurring fair value measurements at June 30, 2026 and 2025.
| June 30, |  |  |  |
(Dollars in millions) | 2026 |  | 2025 |  |  |  |
Level 2 | $ | 100 |  |  | $ | 166 |  |  |  |  |
Level 3 | 272 |  |  | 478 |  |  |  |  |
| $ | 372 |  |  | $ | 644 |  |  |  |  |
Changes in fair value recognized for the three months ended | $ | (51) |  |  | $ | (115) |  |  |  |  |
Changes in fair value recognized for the six months ended | (77) |  |  | (157) |  |  |  |  |
Capitalized servicing rights Prior to January 1, 2026, the Company utilized the amortization method to subsequently measure its residential mortgage loan servicing right assets, subject to impairment charges on a non-recurring basis when the carrying value of certain strata exceeded their fair value. Capitalized servicing rights related to residential mortgage loans required no valuation allowance at each of December 31, 2025 and June 30, 2025. The Company has not made a fair value accounting election for its commercial mortgage loan servicing right assets. Such assets required no valuation allowance at each of June 30, 2026, December 31, 2025 and June 30, 2025. Disclosures of fair value of financial instruments The carrying amounts and estimated fair value for certain financial instruments that are not recorded at fair value in the Company's Consolidated Balance Sheet are presented in the following table.
(Dollars in millions) | Carrying Amount |  | Estimated Fair Value |  | Level 1 |  | Level 2 |  | Level 3
June 30, 2026 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 1,939 |  |  | $ | 1,939 |  |  | $ | 1,746 |  |  | $ | 193 |  |  | $ | — |
Interest-bearing deposits at banks | 15,499 |  |  | 15,499 |  |  | — |  |  | 15,499 |  |  | — |
Investment securities held to maturity | 11,908 |  |  | 11,123 |  |  | — |  |  | 11,084 |  |  | 39 |
Loans, net | 141,017 |  |  | 140,793 |  |  | — |  |  | 4,316 |  |  | 136,477 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Time deposits (a) | 14,988 |  |  | 14,946 |  |  | — |  |  | 14,946 |  |  | — |
Short-term borrowings | 4,614 |  |  | 4,614 |  |  | — |  |  | 4,614 |  |  | — |
Long-term borrowings | 13,568 |  |  | 13,785 |  |  | — |  |  | 13,785 |  |  | — |
December 31, 2025 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Cash and due from banks | 1,701 |  |  | 1,701 |  |  | 1,588 |  |  | 113 |  |  | — |
Interest-bearing deposits at banks | 17,068 |  |  | 17,068 |  |  | — |  |  | 17,068 |  |  | — |
Investment securities held to maturity | 12,430 |  |  | 11,715 |  |  | — |  |  | 11,671 |  |  | 44 |
Loans, net | 136,586 |  |  | 136,269 |  |  | — |  |  | 7,427 |  |  | 128,842 |
Financial liabilities: |  |  |  |  |  |  |  |  |
Time deposits (a) | 13,227 |  |  | 13,208 |  |  | — |  |  | 13,208 |  |  | — |
Short-term borrowings | 2,149 |  |  | 2,149 |  |  | — |  |  | 2,149 |  |  | — |
Long-term borrowings | 10,911 |  |  | 11,179 |  |  | — |  |  | 11,179 |  |  | — |
__________________________________________________________________________________ (a)Includes $2.9 billion and $2.8 billion of time deposits with balances greater than $250,000 at June 30, 2026 and December 31, 2025, respectively. 13. Fair value measurements With the exception of investment securities and mortgage loans originated for sale, the Company’s financial instruments presented in the preceding tables are not readily marketable and market prices do not exist. The Company has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market conditions, interest rates, liquidity and credit spreads and other factors can significantly impact the value of financial instruments in a short period of time. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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