M&T Bank Corporation announced on July 1, 2025, that the Federal Reserve Board determined its preliminary Stress Capital Buffer (SCB) is 2.7%, effective October 1, 2025. This represents a significant reduction from the previous SCB of 3.8%.
The lower SCB implies that M&T Bank's regulatory minimum Common Equity Tier 1 (CET1) ratio will decrease to 7.2% from 8.3%. This reduction frees up capital, providing the company with greater flexibility for strategic initiatives and capital deployment.
René Jones, M&T's Chairman and CEO, attributed the lower SCB to the company's strong earnings power and continued risk management efforts, including a reduction in commercial real estate concentration and improved asset quality. M&T's CET1 ratio as of March 31, 2025, was 11.50%.
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