Item 2.02.Results of Operations and Financial Condition.
On
The information under Item 2.02 in this Form 8-K, including Exhibit 99.1
attached hereto, is being furnished and shall not be deemed to be "filed" for
purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange
Act"), or otherwise subject to the liability of such section, nor shall it be
deemed incorporated by reference in any filing of
Item 8.01. Other Events
The following risk factor supplements the "Risk Factors" section in Item 1A of M&T's 2019 Form 10-K.
M&T's business, financial condition, liquidity and results of operations have been, and will likely continue to be, adversely affected by the COVID-19 pandemic. The Coronavirus Disease 2019 ("COVID-19") pandemic has created economic and financial disruptions that have adversely affected, and are likely to continue to adversely affect, M&T's business, financial condition, liquidity and results of operations. The extent to which the COVID-19 pandemic will continue to negatively affect M&T's business, financial condition, liquidity and results of operations will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic, the continued effectiveness of M&T's business continuity plan, the direct and indirect impact of the pandemic on M&T's employees, customers, clients, counterparties and service providers, as well as other market participants, and actions taken by governmental authorities and other third parties in response to the pandemic.
The COVID-19 pandemic has contributed to:
• Increased unemployment and decreased consumer confidence and business generally, leading to an increased risk of delinquencies, defaults and foreclosures. • Ratings downgrades, credit deterioration and defaults in many industries, including natural resources, hospitality, transportation and commercial real estate. • A sudden and significant reduction in the valuation of the equity, fixed-income and commodity markets and the significant increase in the volatility of those markets. • A decrease in the rates and yields onU.S. Treasury securities, which may lead to decreased net interest income. • Increased demands on capital and liquidity. • A reduction in the value of the assets that the Company manages or otherwise administers or services for others, affecting related fee income and demand for the Company's services. • Heightened cybersecurity, information security and operational risks as a result of work-from-home arrangements.
Governmental authorities have taken unprecedented measures to provide economic assistance to individual households and businesses, stabilize the markets and support economic growth. The success of these measures is unknown and they may not be sufficient to fully mitigate the negative impact of the COVID-19 pandemic. Additionally, some measures, such as a suspension of mortgage and other loan payments and foreclosures, may have a negative impact on M&T's business, financial condition, liquidity and results of operations. M&T also faces an increased risk of litigation and governmental and regulatory scrutiny as a result of the effects of COVID-19 on market and economic conditions and actions governmental authorities take in response to those conditions.
The length of the pandemic and the efficacy of the extraordinary measures being
put in place to address it are unknown. Until the pandemic subsides, the Company
expects continued draws on lines of credit, reduced revenues in our Trust and
other businesses and increased customer and client defaults, including defaults
in unsecured loans. Even after the pandemic subsides, the
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Exhibit Description 99.1 News Release datedApril 20, 2020 . 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). 3
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