XML 31 R14.htm IDEA: XBRL DOCUMENT v3.24.0.1
Loans and Leases
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Loans and leases

4. Loans and leases

Total loans and leases outstanding were comprised of the following:

 

 

December 31,

 

(Dollars in millions)

 

2023

 

 

2022

 

Loans:

 

 

 

 

 

 

Commercial and industrial

 

$

55,000

 

 

$

49,775

 

Commercial real estate

 

 

33,065

 

 

 

35,364

 

Residential real estate

 

 

23,277

 

 

 

23,774

 

Consumer

 

 

20,780

 

 

 

20,579

 

Total loans

 

 

132,122

 

 

 

129,492

 

Leases:

 

 

 

 

 

 

Commercial

 

 

2,814

 

 

 

2,582

 

Total loans and leases

 

 

134,936

 

 

 

132,074

 

Less: unearned discount

 

 

(868

)

 

 

(510

)

Total loans and leases, net of unearned discount

 

$

134,068

 

 

$

131,564

 

One-to-four family residential mortgage loans held for sale were $190 million at December 31, 2023 and $32 million at December 31, 2022. Commercial real estate loans held for sale were $189 million at December 31, 2023 and $131 million at December 31, 2022.

The amount of foreclosed property held by the Company, predominantly consisting of residential real estate, was $39 million and $41 million at December 31, 2023 and 2022, respectively. There were $170 million and $201 million at December 31, 2023 and 2022, respectively, in loans secured by residential real estate that were in the process of foreclosure. Of all loans in the process of foreclosure at December 31, 2023, approximately 35% were government guaranteed.

Borrowings by directors and certain officers of M&T and its banking subsidiaries, and by associates of such persons, exclusive of loans aggregating less than $60,000, amounted to $116 million and $102 million at December 31, 2023 and 2022, respectively. During 2023, new borrowings by such persons amounted to $49 million (including any borrowings of new directors or officers that were outstanding at the time of their election) and repayments and other reductions (including reductions resulting from individuals ceasing to be directors or officers) were $35 million.

At December 31, 2023, approximately $13.4 billion of commercial and industrial loans, including leases, $16.4 billion of commercial real estate loans, $18.8 billion of one-to-four family residential real estate loans, $2.6 billion of home equity loans and lines of credit and $11.0 billion of other consumer loans were pledged to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York as described in note 9. Additionally, at December 31, 2023, approximately $599 million of equipment finance loans and leases remain in a special purpose trust as collateral for certain asset-backed notes issued by M&T Bank in August 2023 as further described in notes 9 and 20.

A summary of current, past due and nonaccrual loans as of December 31, 2023 and 2022 follows:

(Dollars in millions)

 

Current

 

 

30-89 Days
Past Due

 

 

Accruing
Loans Past
Due 90
Days or
More

 

 

Nonaccrual

 

 

Total

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

56,091

 

 

$

238

 

 

$

11

 

 

$

670

 

 

$

57,010

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

24,072

 

 

 

311

 

 

 

25

 

 

 

869

 

 

 

25,277

 

Residential builder and developer

 

 

1,065

 

 

 

5

 

 

 

—

 

 

 

3

 

 

 

1,073

 

Other commercial construction

 

 

6,322

 

 

 

159

 

 

 

1

 

 

 

171

 

 

 

6,653

 

Residential

 

 

21,080

 

 

 

763

 

 

 

295

 

 

 

215

 

 

 

22,353

 

Residential — limited documentation

 

 

825

 

 

 

31

 

 

 

—

 

 

 

55

 

 

 

911

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

4,528

 

 

 

40

 

 

 

—

 

 

 

81

 

 

 

4,649

 

Recreational finance

 

 

9,935

 

 

 

87

 

 

 

—

 

 

 

36

 

 

 

10,058

 

Automobile

 

 

3,918

 

 

 

60

 

 

 

—

 

 

 

14

 

 

 

3,992

 

Other

 

 

2,003

 

 

 

30

 

 

 

7

 

 

 

52

 

 

 

2,092

 

Total

 

$

129,839

 

 

$

1,724

 

 

$

339

 

 

$

2,166

 

 

$

134,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

Commercial and industrial

 

$

50,842

 

 

$

498

 

 

$

76

 

 

$

504

 

 

$

51,920

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

25,113

 

 

 

261

 

 

 

65

 

 

 

1,240

 

 

 

26,679

 

Residential builder and developer

 

 

1,305

 

 

 

9

 

 

 

—

 

 

 

1

 

 

 

1,315

 

Other commercial construction

 

 

6,937

 

 

 

240

 

 

 

—

 

 

 

125

 

 

 

7,302

 

Residential

 

 

21,492

 

 

 

596

 

 

 

345

 

 

 

272

 

 

 

22,705

 

Residential — limited documentation

 

 

951

 

 

 

22

 

 

 

—

 

 

 

78

 

 

 

1,051

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

4,891

 

 

 

31

 

 

 

—

 

 

 

85

 

 

 

5,007

 

Recreational finance

 

 

8,974

 

 

 

55

 

 

 

—

 

 

 

45

 

 

 

9,074

 

Automobile

 

 

4,393

 

 

 

44

 

 

 

—

 

 

 

40

 

 

 

4,477

 

Other

 

 

1,957

 

 

 

23

 

 

 

5

 

 

 

49

 

 

 

2,034

 

Total

 

$

126,855

 

 

$

1,779

 

 

$

491

 

 

$

2,439

 

 

$

131,564

 

 

Loan modifications

During the normal course of business, the Company modifies loans to maximize recovery efforts from borrowers experiencing financial difficulty. Such loan modifications typically include payment deferrals and interest rate reductions but may also include other modified terms. Those modified loans may be considered nonaccrual if the Company does not expect to collect the contractual cash flows owed under the loan agreement. On January 1, 2023, the Company adopted amended guidance that eliminated the accounting guidance for troubled debt restructurings while expanding disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amended guidance also requires disclosure of current period gross charge-offs by year of origination.

The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the year ended December 31, 2023:

 

 

Amortized cost at December 31, 2023

 

(Dollars in millions)

 

Payment Deferral

 

 

Interest Rate Reduction

 

 

Other

 

 

Combination of Modification Types (a)

 

 

Total (b) (c)

 

 

Percent of Total Loan Class

 

Year Ended December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

179

 

 

$

18

 

 

$

—

 

 

$

1

 

 

$

198

 

 

 

.35

%

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

610

 

 

 

—

 

 

 

—

 

 

 

41

 

 

 

651

 

 

2.57

 

Residential builder and developer

 

 

71

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

71

 

 

6.63

 

Other commercial construction

 

 

480

 

 

 

—

 

 

 

—

 

 

 

8

 

 

 

488

 

 

7.34

 

Residential

 

 

160

 

 

 

—

 

 

 

—

 

 

 

5

 

 

 

165

 

 

 

.74

 

Residential — limited documentation

 

 

11

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

12

 

 

1.25

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

 

 

.03

 

Recreational finance

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Automobile

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,511

 

 

$

18

 

 

$

—

 

 

$

57

 

 

$

1,586

 

 

 

1.18

%

 

(a)
Predominantly payment deferrals combined with interest rate reductions.
(b)
Includes approximately $124 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans).
(c)
Excludes unfunded commitments to extend credit totaling $128 million.

The financial effects of the modifications for the year ended December 31, 2023 include an increase in the weighted-average remaining term for commercial and industrial loans of 1.3 years, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 1.1 years and for residential real estate loans, of 10.6 years.

Modified loans to borrowers experiencing financial difficulty are subject to the allowance for credit losses methodology described herein, including the use of models to inform credit loss estimates and, to the extent larger balance commercial and industrial and commercial real estate loans are in nonaccrual status, a loan-by-loan analysis of expected credit losses on those individual loans. The following table summarizes the payment status, at December 31, 2023, of loans that were modified during 2023.

 

 

Payment status at December 31, 2023 (amortized cost)

 

(Dollars in millions)

 

Current

 

 

30-89 Days Past Due

 

 

Past Due 90 Days or More (a)

 

 

Total

 

Year Ended December 31, 2023

 

 

 

Commercial and industrial

 

$

182

 

 

$

7

 

 

$

9

 

 

$

198

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

618

 

 

 

21

 

 

 

12

 

 

 

651

 

Residential builder and developer

 

 

71

 

 

 

—

 

 

 

—

 

 

 

71

 

Other commercial construction

 

 

440

 

 

 

48

 

 

 

—

 

 

 

488

 

Residential (b)

 

 

93

 

 

 

45

 

 

 

27

 

 

 

165

 

Residential — limited documentation

 

 

9

 

 

 

2

 

 

 

1

 

 

 

12

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

1

 

 

 

—

 

 

 

—

 

 

 

1

 

Recreational finance

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Automobile

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

1,414

 

 

$

123

 

 

$

49

 

 

$

1,586

 

 

(a)
Predominantly loan modifications with payment deferrals.
(b)
Includes loans guaranteed by government-related entities classified as 30-89 days past due of $40 million and as past due 90 days or more of $24 million.

Prior to January 1, 2023, if a borrower was experiencing financial difficulty such that the Company did not expect to collect the contractual cash flows owed under the original loan agreement and a concession in loan terms was granted, the Company considered the loan modification as a troubled debt restructuring. The table that follows summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the years ended December 31, 2022 and 2021. The table is not comparative to the preceding table. The Company no longer designates modified loans as a troubled debt restructuring in conjunction with the adoption of amended accounting guidance on January 1, 2023.

 

 

 

 

 

 

 

 

Post-modification (a)

 

(Dollars in millions)

 

Number

 

 

Pre-
modification Recorded Investment

 

 

Principal Deferral

 

 

Interest Rate Reduction

 

 

Other

 

 

Combination of Concession Types

 

 

Total

 

Year Ended December 31, 2022

 

 

 

Commercial and industrial

 

 

231

 

 

$

98

 

 

$

58

 

 

$

—

 

 

$

3

 

 

$

37

 

 

$

98

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

12

 

 

 

25

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

16

 

 

 

25

 

Residential builder and developer

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other commercial construction

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential

 

 

274

 

 

 

71

 

 

 

55

 

 

 

—

 

 

 

—

 

 

 

20

 

 

 

75

 

Residential — limited
   documentation

 

 

8

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

144

 

 

 

10

 

 

 

9

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

10

 

Recreational finance

 

 

729

 

 

 

28

 

 

 

28

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

28

 

Automobile

 

 

2,092

 

 

 

42

 

 

 

42

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

42

 

Other

 

 

149

 

 

 

1

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

Total

 

 

3,641

 

 

$

276

 

 

$

203

 

 

$

—

 

 

$

3

 

 

$

74

 

 

$

280

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

348

 

 

$

205

 

 

$

58

 

 

$

—

 

 

$

45

 

 

$

99

 

 

$

202

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

35

 

 

 

184

 

 

 

57

 

 

 

—

 

 

 

27

 

 

 

98

 

 

 

182

 

Residential builder and developer

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other commercial construction

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential

 

 

373

 

 

 

108

 

 

 

95

 

 

 

—

 

 

 

—

 

 

 

13

 

 

 

108

 

Residential — limited
   documentation

 

 

21

 

 

 

3

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Home equity lines and loans

 

 

89

 

 

 

6

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

Recreational finance

 

 

281

 

 

 

10

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10

 

Automobile

 

 

807

 

 

 

15

 

 

 

15

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15

 

Other

 

 

362

 

 

 

3

 

 

 

3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3

 

Total

 

 

2,320

 

 

$

534

 

 

$

247

 

 

$

—

 

 

$

72

 

 

$

210

 

 

$

529

 

 

(a)
Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages. The present value of interest rate concessions, discounted at the effective rate of the original loan, was not material.

 

The Company’s loan and lease portfolio includes commercial lease financing receivables for construction and industrial equipment and machinery, railroad cars, commercial trucks and trailers, and aircraft. Certain leases contain payment schedules that are tied to variable interest rate indices. In general, early termination options are provided if the lessee is not in default, returns the leased equipment and pays an early termination fee. Additionally, options to purchase the underlying asset by the lessee are generally at the fair market value of the equipment. A summary of lease financing receivables follows.

 

 

December 31,

 

(Dollars in millions)

 

2023

 

 

2022

 

Commercial leases:

 

 

 

 

 

 

Financing:

 

 

 

 

 

 

Lease payments receivable

 

$

2,431

 

 

$

2,175

 

Estimated residual value of leased assets

 

 

274

 

 

 

262

 

Unearned income

 

 

(248

)

 

 

(145

)

Investment in financing leases

 

 

2,457

 

 

 

2,292

 

Leveraged:

 

 

 

 

 

 

Lease payments receivable

 

 

57

 

 

 

71

 

Estimated residual value of leased assets

 

 

52

 

 

 

74

 

Unearned income

 

 

(15

)

 

 

(22

)

Investment in leveraged leases

 

 

94

 

 

 

123

 

Total investment in leases

 

$

2,551

 

 

$

2,415

 

Deferred taxes payable arising from leveraged leases

 

$

36

 

 

$

52

 

Included within the estimated residual value of leased assets at December 31, 2023 and 2022 were $96 million and $93 million, respectively, in residual value associated with financing leases that are guaranteed by the lessees or others.

At December 31, 2023, the minimum future lease payments to be received from lease financings were as follows:

(Dollars in millions)

 

 

 

Year ending December 31:

 

 

 

2024

 

$

823

 

2025

 

 

677

 

2026

 

 

468

 

2027

 

 

290

 

2028

 

 

136

 

Later years

 

 

94

 

 

 

$

2,488