M&T Bank Corporation Announces Preliminary Stress Capital Buffer

Rhea-AI Summary

M&T Bank Corporation (NYSE: MTB) announced that the Federal Reserve Board has set its preliminary stress capital buffer (SCB) at 2.7%, effective October 1, 2025, a reduction from the previous 3.8%. This adjustment lowers the company's regulatory minimum CET1 ratio requirement to 7.2% from 8.3%.

The bank reported a CET1 ratio of 11.50% as of March 31, 2025, and projects reaching 11.0% in 2025. CEO René Jones attributed the improved SCB to the company's earnings strength, enhanced risk management, reduced commercial real estate concentration, and improved asset quality. The new SCB shows a significant improvement from the 4.7% level in the 2022 Supervisory Stress Test.

Positive

• Stress capital buffer reduced to 2.7% from 3.8%, indicating improved risk profile
• Strong CET1 ratio of 11.50%, well above regulatory minimum of 7.2%
• Improved asset quality and reduced commercial real estate concentration
• 2.0% improvement in SCB compared to 2022 levels (4.7% to 2.7%)

Negative

• Projected decline in CET1 ratio from current 11.50% to 11.0% by end of 2025

BUFFALO, N.Y., July 1, 2025 /PRNewswire/ -- M&T Bank Corporation ("M&T" or the "Company") (NYSE: MTB) today announced the Federal Reserve Board has determined the Company's preliminary stress capital buffer ("SCB"), under the current rules, is 2.7%, effective October 1, 2025, down from the previous SCB of 3.8%. The Federal Reserve Board will provide the Company's final SCB requirement on or before August 31, 2025.

The Company's regulatory minimum CET1 ratio implied by the preliminary SCB is now 7.2%, down from 8.3%. M&T's CET1 ratio as of March 31, 2025 was 11.50% and the company expects to reach a CET1 ratio of 11.0% in 2025.

"Our decision to participate in the 2025 Supervisory Stress Test was based on the strength of the company's earnings power and continued risk management efforts, including a reduction in our commercial real estate concentration and improved asset quality," said René Jones, M&T's Chairman and Chief Executive Officer. "The lower SCB reflects those efforts and will allow the company to continue to support our customers and communities and return capital to shareholders over time. This SCB of 2.7% represents an improvement of 2.0% compared to the 4.7% SCB in the 2022 Supervisory Stress Test."

About M&T

M&T Bank Corporation is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. 

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, and future performance of M&T, including under hypothetical regulatory stress testing scenarios. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions. Forward-looking statements are typically identified by words such as "expect," "anticipate," "continue," "will," "would," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Many possible events or factors could affect M&T's future financial results and performance and could cause actual results or performance to differ materially from anticipated results or performance. M&T provides further detail regarding factors which could affect forward-looking statements in its Form 10-K for the year ended December 31, 2024, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements.

Equal Housing Lender. © 2025 M&T Bank. NMLS #381076. Member FDIC. All Rights Reserved.

Investor Contact:
Brian Klock
Steve Wendelboe
(716) 842-5138

Media Contact:
Frank Lentini
(929) 651-0447 / flentini@mtb.com

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SOURCE M&T Bank Corporation

FAQ

What is M&T Bank's (MTB) new stress capital buffer for 2025?

M&T Bank's preliminary stress capital buffer (SCB) has been set at 2.7%, effective October 1, 2025, down from the previous 3.8%.

How does the new SCB affect MTB's regulatory capital requirements?

The new SCB lowers M&T Bank's regulatory minimum CET1 ratio requirement to 7.2% from 8.3%.

What is M&T Bank's current CET1 ratio and future projection?

M&T Bank's CET1 ratio was 11.50% as of March 31, 2025, and the company expects to reach 11.0% by the end of 2025.

How much has MTB's stress capital buffer improved since 2022?

M&T Bank's SCB has improved by 2.0%, decreasing from 4.7% in the 2022 Supervisory Stress Test to 2.7% in 2025.

What factors contributed to MTB's improved stress capital buffer?

The improved SCB reflects the company's strong earnings power, enhanced risk management, reduced commercial real estate concentration, and improved asset quality.