v3.26.1
Fair value measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair value measurements
12. 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 March 31, 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.
12. Fair value measurements
Recurring fair value measurements
The following tables present assets and liabilities at March 31, 2026 and December 31, 2025 measured at fair value on a recurring basis.
(Dollars in millions)Fair Value MeasurementsLevel 1Level 2Level 3
March 31, 2026    
Trading account$92 $12 $80 $— 
Investment securities available for sale:   
U.S. Treasury3,240 — 3,240 — 
Mortgage-backed securities:    
Government issued or guaranteed:   
Commercial4,782 — 4,782 — 
Residential17,205 — 17,205 — 
Other1 — 1 — 
Total investment securities available for sale25,228 — 25,228 — 
Equity securities281 281 — — 
Real estate loans held for sale686 — 686 — 
Residential mortgage loan servicing rights542 — — 542 
Other assets217 — 215 2 
Total assets$27,046 $293 $26,209 $544 
Other liabilities$425 $— $425 $— 
Total liabilities$425 $— $425 $— 
December 31, 2025    
Trading account$97 $12 $85 $— 
Investment securities available for sale:    
U.S. Treasury6,343 — 6,343 — 
Mortgage-backed securities:    
Government issued or guaranteed:    
Commercial4,816 — 4,816 — 
Residential12,042 — 12,042 — 
Other 1 — 1 — 
Total investment securities available for sale23,202 — 23,202 — 
Equity securities281 281 — — 
Real estate loans held for sale925 — 925 — 
Other assets245 — 242 3 
Total assets$24,750 $293 $24,454 $3 
Other liabilities$454 $— $454 $— 
Total liabilities$454 $— $454 $— 
The changes in fair value of residential mortgage loans servicing right assets for the three months ended March 31, 2026 are presented in the following table.
(Dollars in millions)Residential Mortgage Loan Servicing Rights
(Level 3)
Balance at December 31, 2025 — at amortized cost$287 
January 1, 2026 - fair value accounting election263 
Additions8 
Changes in fair value included in Mortgage banking revenues (a)(16)
Balance at March 31, 2026 — at fair value$542 
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(a)Includes a $17 million reduction in fair value attributable to the realization of expected net servicing cash flows over time.
12. Fair value measurements
Significant unobservable inputs used in the fair value measurement of residential mortgage loan servicing right assets vary by loan type and included prepayment assumptions and an OAS over market implied forward SOFR to determine an appropriate discount rate. An increase (decrease) in the prepayment speed and OAS each would generally result in a lower (higher) fair value measurement of residential mortgage loan servicing rights. The key economic assumptions used to determine the fair value of residential capitalized servicing rights at March 31, 2026 and the sensitivity of such value to changes in those assumptions are summarized in the table that follows. Those calculated sensitivities are hypothetical and actual changes in the fair value of capitalized servicing rights may differ significantly from the amounts presented herein. The effect of a variation in a particular assumption on the fair value of the servicing rights is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another which may magnify or counteract the sensitivities. The changes in assumptions are presumed to be instantaneous.
(Dollars in millions)
Weighted-average prepayment speeds (range 6% - 17%)
7.44%
Impact on fair value of 10% adverse change$(16)
Impact on fair value of 20% adverse change(30)
Weighted-average OAS (range 5% - 20%)
7.22%
Impact on fair value of 10% adverse change$(15)
Impact on fair value of 20% adverse change(29)
Nonrecurring fair value measurements
The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow.
Loans
Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of certain loans based on fair value measurements for partial charge-offs of the uncollectable portions of those loans. The following table summarizes loans subject to such nonrecurring fair value measurements at March 31, 2026 and 2025.
March 31,
(Dollars in millions)20262025
Level 1$— $— 
Level 274 128 
Level 3240 396 
$314 $524 
Changes in fair value recognized for the quarter ended$(38)$(35)
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 March 31, 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 March 31, 2026, December 31, 2025 and March 31, 2025.
12. Fair value measurements
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
March 31, 2026
Financial assets:
Cash and due from banks$1,903 $1,903 $1,732 $171 $— 
Interest-bearing deposits at banks14,445 14,445 — 14,445 — 
Investment securities held to maturity12,119 11,355 — 11,314 41 
Loans, net137,778 137,229 — 4,786 132,443 
Financial liabilities:
Time deposits (a)13,082 13,051 — 13,051 — 
Short-term borrowings7,851 7,851 — 7,851 — 
Long-term borrowings11,175 11,327 — 11,327 — 
December 31, 2025
Financial assets:
Cash and due from banks1,701 1,701 1,588 113 — 
Interest-bearing deposits at banks17,068 17,068 — 17,068 — 
Investment securities held to maturity12,430 11,715 — 11,671 44 
Loans, net136,586 136,269 — 7,427 128,842 
Financial liabilities:
Time deposits (a)13,227 13,208 — 13,208 — 
Short-term borrowings2,149 2,149 — 2,149 — 
Long-term borrowings10,911 11,179 — 11,179 — 
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(a)Includes $2.7 billion and $2.8 billion of time deposits with balances greater than $250,000 at March 31, 2026 and December 31, 2025, respectively.
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 interest rates can dramatically 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.