15.

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

M&T holds a 20% minority interest in Bayview Lending Group LLC (“BLG”), a privately-held commercial mortgage company. M&T recognizes income or loss from BLG using the equity method of accounting. The carrying value of that investment was $51 million at September 30, 2014.

Bayview Financial Holdings, L.P. (together with its affiliates, “Bayview Financial”), a privately-held specialty mortgage finance company, is BLG’s majority investor. In addition to their common investment in BLG, the Company and Bayview Financial conduct other business activities with each other. The Company has obtained loan servicing rights for mortgage loans from BLG and Bayview Financial having outstanding principal balances of $5.0 billion and $5.5 billion at September 30, 2014 and December 31, 2013, respectively. Revenues from those servicing rights were $6 million and $7 million during the three months ended September 30, 2014 and 2013, respectively, and $20 million and $23 million for the nine months ended September 30, 2014 and 2013, respectively. The Company sub-services residential real estate loans for Bayview Financial having outstanding principal balances totaling $43.2 billion and $45.6 billion at September 30, 2014 and December 31, 2013, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $29 million and $8 million for the three-month periods ended September 30, 2014 and 2013, respectively, and $82 million and $12 million for the nine-month periods ended September 30, 2014 and 2013, respectively. In addition, the Company held $207 million and $220 million of mortgage-backed securities in its held-to-maturity portfolio at September 30, 2014 and December 31, 2013, respectively, that were securitized by Bayview Financial.