M&t Bank (MTB) risk factors, FY2025 10-K

Market Risk

1. 01Weakness in the economy, or fluctuations in market factors, has adversely affected the Company in the past and may adversely affect the Company in the future
2. 02The Company is routinely subject to examinations from various governmental taxing authorities that may result in challenges to the Company’s tax return treatment
3. 03The Company’s business and performance is vulnerable to the impact of volatility in debt and equity markets
4. 04The Company’s regional concentrations expose it to adverse economic conditions in its primary retail banking office footprint
5. 05The Company’s floating-rate funding, certain hedging transactions and a significant portion of the Company’s products, such as floating-rate loans and mortgages, determine the applicable interest rate or payment amount by reference to a benchmark rate or to an alternative index

Risks Relating to Compliance and the Regulatory Environment

1. 06The Company is subject to extensive government regulation and supervision and this regulatory environment can be and has been significantly impacted by financial regulatory reform initiatives35% rewritten
2. 07enforcement actions in connection with the resolution of an inquiry or investigation, even if unrelated to the prior enforcement actionNew
3. 08The Company may be subject to more stringent capital and liquidity requirements
4. 09M&T’s ability to return capital to shareholders and to pay dividends on common stock may be adversely affected by market and other factors outside of its control and will depend, in part, on the results of supervisory stress tests administered by the Federal Reserve
5. 10If an orderly liquidation of a systemically important BHC or non-bank financial company were triggered, M&T could face assessments for the OLF
6. 11Deteriorating credit quality could adversely impact the Company
7. 12The Company may be adversely affected by the soundness of other financial institutions
8. 13The Company must maintain adequate sources of funding and liquidity53% rewritten
9. 14M&T relies on dividends from its subsidiaries for its liquidity

Strategic Risk

1. 15The financial services industry is highly competitive and creates competitive pressures that could adversely affect the Company’s revenue and profitability
2. 16Difficulties in obtaining regulatory approval for acquisitions and in combining the operations of acquired entities with the Company’s own operations may prevent M&T from achieving expected benefits from acquisitions
3. 17The Company could suffer if it fails to attract and retain skilled personnel

Operational Risk

1. 18The Company is subject to operational risk which could adversely affect the Company’s business and reputation and create material legal and financial exposure
2. 19The Company’s information systems may experience interruptions or breaches in security, such as cyber attacks, including due to events beyond the Company’s control
3. 20The Company could incur higher costs, experience lower revenue, and suffer reputational damage in the event of the theft, loss or misuse of information, including due to a cyber attack
4. 21The Company is subject to laws and regulations relating to the privacy of the information of customers, clients, employees or others, and any failure to comply with these laws and regulations could expose the Company to liability and/or reputational damage
5. 22M&T relies on other companies to provide key components of the Company’s business infrastructure
6. 23The development and use of AI, including by third parties, presents risks and challenges that may adversely impact M&T
7. 24applicable to the use of AI. These evolving laws and regulations could require changes in the Company’s or third parties’ implementation of AI technology and increase the Company’s compliance costs and risk of non-compliance
8. 25The Company is or may become involved from time to time in suits, legal proceedings, information-gathering requests, investigations and proceedings by governmental and self-regulatory agencies that may lead to adverse consequences

Business Risk

1. 26Changes in accounting standards could impact the Company’s reported financial condition and results of operations
2. 27The Company’s reported financial condition and results of operations depend on management’s selection of accounting methods and require management to make estimates about matters that are uncertain
3. 28The Company’s models used for business planning purposes could perform poorly or provide inadequate information
4. 29The Company's reputation may be harmed, which could negatively impact investor and customer confidence
5. 30its cybersecurity. Damage to the Company’s reputation could also adversely affect its credit ratings and access to the capital markets
6. 31The Company’s framework for managing risks may not be effective
7. 32Pandemics, acts of war or terrorism and other adverse external events could significantly impact the Company’s business69% rewritten
8. 33The Company’s assets, communities, operations, reputation and customers could be adversely affected by the impacts of climate-related risk20% rewritten