Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Borrowings

9. Borrowings

The amounts and interest rates of short-term borrowings were as follows:

(Dollars in millions)	Repurchase Agreements			FHLB Advances			Total
At December 31, 2023
Amount outstanding	$	316		$	5,000		$	5,316
Weighted-average interest rate		3.26	%		5.35	%		5.23	%
At December 31, 2022
Amount outstanding	$	355		$	3,200		$	3,555
Weighted-average interest rate		1.01	%		4.59	%		4.24	%

Short-term borrowings have a stated maturity of one year or less at the date the Company enters into the obligation. All outstanding short-term borrowings at December 31, 2023 are set to mature in the first quarter of 2024.

At December 31, 2023, M&T Bank had borrowing facilities available with the FHLB of New York whereby M&T Bank could borrow up to approximately $16.8 billion. Additionally, M&T Bank had an available line of credit with the FRB of New York totaling approximately $17.1 billion at December 31, 2023. Outstanding borrowings on such facilities totaled $5.0 billion at December 31, 2023. M&T Bank is required to pledge loans and investment securities as collateral for these borrowing facilities.

Long-term borrowings were as follows:

	December 31,
(Dollars in millions)	2023		2022
Senior notes of M&T:
Variable rate due 2023	$	—	$	250
3.55% due 2023		—		494
4.55% fixed/variable due 2028		484		477
7.41% fixed/variable due 2029		1,028		—
5.05% fixed/variable due 2034		970		—
Senior notes of M&T Bank:
2.90% due 2025		750		750
5.40% due 2025		499		499
4.65% due 2026		1,296		—
4.70% due 2028		1,196		—
Subordinated notes of M&T:
5.75% due 2024		76		77
Subordinated notes of M&T Bank:
4.00% due 2024		401		404
3.40% due 2027		472		463
Junior subordinated debentures of M&T associated with    preferred capital securities:
Fixed rates:
BSB Capital Trust I — 8.125%, due 2028		16		16
Provident Trust I — 8.29%, due 2028		32		31
Southern Financial Statutory Trust I — 10.60%, due 2030		7		7
Variable rates:
First Maryland Capital I — due 2027		150		150
First Maryland Capital II — due 2027		153		152
Allfirst Asset Trust — due 2029		98		97
BSB Capital Trust III — due 2033		15		15
Provident Statutory Trust III — due 2033		60		59
Southern Financial Capital Trust III — due 2033		9		9
Asset-backed notes		474		—
Other		15		15
	$	8,201	$	3,965

The variable rate senior notes of M&T were repaid in 2023 and paid interest quarterly at a rate that was indexed to the three-month LIBOR. The contractual interest rate was 5.00% at December 31, 2022.

The Junior Subordinated Debentures are held by various trusts and were issued in connection with the issuance by those trusts of Preferred Capital Securities and Common Securities. The proceeds from the issuances of the Preferred Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures. The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust’s securities possessing general voting powers. The Preferred Capital Securities represent preferred undivided interests in the assets of the corresponding trust. Under the Federal Reserve’s risk-based capital guidelines, the Preferred Capital Securities qualify for inclusion in Tier 2 regulatory capital. The variable rate Junior Subordinated Debentures pay interest quarterly at rates that are indexed to the three-month SOFR. Those rates ranged from 6.49% to 9.01% at December 31, 2023 and from 5.08% to 7.69% at December 31, 2022. The weighted-average variable rates payable on those Junior Subordinated Debentures were 7.07% at December 31, 2023 and 5.66% at December 31, 2022.

Holders of the Preferred Capital Securities receive preferential cumulative cash distributions unless M&T exercises its right to extend the payment of interest on the Junior Subordinated Debentures as allowed by the terms of each such debenture, in which case payment of distributions on the respective Preferred Capital Securities will be deferred for comparable periods. During an extended interest period, M&T may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. In general, the agreements governing the Preferred Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by M&T of the payment of distributions on, the redemption of, and any liquidation distribution with respect to the Preferred Capital Securities. The obligations under such guarantee and the Preferred Capital Securities are subordinate and junior in right of payment to all senior indebtedness of M&T.

The Preferred Capital Securities will remain outstanding until the Junior Subordinated Debentures are repaid at maturity, are redeemed prior to maturity or are distributed in liquidation to the trusts. The Preferred Capital Securities are mandatorily redeemable in whole, but not in part, upon repayment at the stated maturity dates (ranging from 2027 to 2033) of the Junior Subordinated Debentures or the earlier redemption of the Junior Subordinated Debentures in whole upon the occurrence of one or more events set forth in the indentures relating to the Preferred Capital Securities, and in whole or in part at any time after an optional redemption prior to contractual maturity contemporaneously with the optional redemption of the related Junior Subordinated Debentures in whole or in part, subject to possible regulatory approval.

In August 2023, a subsidiary of M&T Bank issued asset-backed notes secured by equipment finance loans and leases. A total of $550 million of such notes, representing the senior-most notes in the securitization, were purchased by third parties. At December 31, 2023, the outstanding asset-backed notes totaled $474 million and had a weighted-average estimated life of approximately two years and a weighted-average interest rate of 5.89%. Further information about this financing transaction is provided in note 20.

Long-term borrowings at December 31, 2023 mature as follows:

(Dollars in millions)
Year ending December 31:
2024	$	527
2025		1,251
2026		1,297
2027		775
2028		1,728
Later years		2,623
	$	8,201