BUFFALO, N.Y., July 15, 2026 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $818 million or $5.32 of diluted earnings per common share.
Earnings highlights
Selected financial data for the quarters ended June 30, 2026 and March 31, 2026, and the quarter ended June 30, 2025, are summarized below (dollars in millions, except per share data):
- Net interest income: $1,792 in 2Q26; $1,752 in 1Q26; $1,713 in 2Q25.
- Taxable-equivalent adjustment: $12 in 2Q26; $11 in 1Q26; $9 in 2Q25.
- Net interest income - taxable-equivalent: $1,804 in 2Q26; $1,763 in 1Q26; $1,722 in 2Q25.
- Provision for credit losses: $120 in 2Q26; $140 in 1Q26; $125 in 2Q25.
- Noninterest income: $740 in 2Q26; $689 in 1Q26; $683 in 2Q25.
- Noninterest expense: $1,349 in 2Q26; $1,438 in 1Q26; $1,336 in 2Q25.
- Net income: $818 in 2Q26; $664 in 1Q26; $716 in 2Q25.
- Net income available to common shareholders - diluted: $781 in 2Q26; $620 in 1Q26; $679 in 2Q25.
- Diluted earnings per common share: $5.32 in 2Q26; $4.13 in 1Q26; $4.24 in 2Q25.
- Return on average assets (annualized): 1.51% in 2Q26; 1.26% in 1Q26; 1.37% in 2Q25.
- Return on average common shareholders' equity (annualized): 12.30% in 2Q26; 9.67% in 1Q26; 10.39% in 2Q25.
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Average balance sheet
- Total assets (average): $216,532 in 2Q26; $213,828 in 1Q26; $210,261 in 2Q25.
- Interest-bearing deposits at banks (average): $15,061 in 2Q26; $16,231 in 1Q26; $19,698 in 2Q25.
- Investment securities (average): $38,728 in 2Q26; $37,845 in 1Q26; $35,335 in 2Q25.
- Loans (average): $141,427 in 2Q26; $138,423 in 1Q26; $135,407 in 2Q25.
- Deposits (average): $163,524 in 2Q26; $164,176 in 1Q26; $163,258 in 2Q25.
- Borrowings (average): $20,794 in 2Q26; $16,759 in 1Q26; $14,263 in 2Q25.
Selected ratios
- Net interest margin: 3.70% in 2Q26; 3.70% in 1Q26; 3.62% in 2Q25.
- Efficiency ratio: 52.8 in 2Q26; 58.3 in 1Q26; 55.2 in 2Q25.
- Net charge-offs to average total loans (annualized): 0.23 in 2Q26; 0.31 in 1Q26; 0.32 in 2Q25.
- Allowance for loan losses to total loans: 1.52 in 2Q26; 1.53 in 1Q26; 1.61 in 2Q25.
- Nonaccrual loans to total loans: 0.84 in 2Q26; 0.89 in 1Q26; 1.16 in 2Q25.
- Common equity Tier 1 ("CET1") capital ratio: 10.19 in 2Q26; 10.33 in 1Q26; 10.99 in 2Q25.
- Common shareholders' equity per share: $176.03 in 2Q26; $173.82 in 1Q26; $166.94 in 2Q25.
In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.
A reconciliation of non-GAAP measures is included in the tables that accompany this release.
The CET1 capital ratio at June 30, 2026 is estimated.
Financial highlights
- Taxable-equivalent net interest income increased $41 million in the recent quarter compared with the first quarter of 2026, reflecting an additional day in the recent quarter, higher interest income on nonaccrual loans and growth in average earning assets. The net interest margin remained at 3.70%.
- A $3.0 billion increase in average loan balances in the recent quarter spanned all loan categories, including $2.3 billion of growth in average commercial and industrial loans. Commercial real estate loans at June 30, 2026 increased $1.1 billion from March 31, 2026.
- Noninterest income in the recent quarter reflects a higher distribution from M&T's investment in Bayview Lending Group LLC ("BLG"), an increase in trust income and a rise in revenues from interest rate swap agreements entered into for commercial customers.
- The decline in noninterest expense reflects seasonal salaries and employee benefits expense recognized in the first quarter of 2026.
- The allowance for loan losses as a percent of total loans declined 1 basis point to 1.52% at June 30, 2026.
- In the recent quarter, M&T repurchased 2.1 million shares of its common stock at a total cost of $465 million. M&T's CET1 capital ratio is estimated to be 10.19% at June 30, 2026.
Chief financial officer commentary
"M&T generated record earnings per share in the second quarter, reflecting strong contributions from our commercial, retail and institutional services and wealth management businesses. These results reflect the enduring strength of our franchise and the dedication of our employees to making a meaningful difference in the lives of our customers and communities. I want to thank my M&T colleagues. As a result of their commitment, M&T continues to create lasting value for everyone we serve."
Non-GAAP measures
M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be nonoperating in nature.
Selected non-GAAP data for the quarter and comparative periods (dollars in millions, except per share data):
- Net operating income: $823 in 2Q26; $671 in 1Q26; $724 in 2Q25.
- Diluted net operating earnings per common share: $5.35 in 2Q26; $4.18 in 1Q26; $4.28 in 2Q25.
- Annualized return on average tangible assets: 1.59% in 2Q26; 1.33% in 1Q26; 1.44% in 2Q25.
- Annualized return on average tangible common equity: 18.57 in 2Q26; 14.51 in 1Q26; 15.54 in 2Q25.
- Efficiency ratio: 52.8 in 2Q26; 58.3 in 1Q26; 55.2 in 2Q25.
- Tangible equity per common share: $117.41 in 2Q26; $115.96 in 1Q26; $112.48 in 2Q25.
A reconciliation of non-GAAP measures is included in the tables that accompany this release.
Taxable-equivalent net interest income
Selected net interest and margin data (dollars in millions):
- Average earning assets: $195,216 in 2Q26; $192,594 in 1Q26; $190,535 in 2Q25.
- Average interest-bearing liabilities: $140,354 in 2Q26; $136,388 in 1Q26; $132,368 in 2Q25.
- Taxable-equivalent net interest income: $1,804 in 2Q26; $1,763 in 1Q26; $1,722 in 2Q25.
- Yield on average earning assets: 5.40% in 2Q26; 5.35% in 1Q26; 5.51% in 2Q25.
- Cost of interest-bearing liabilities: 2.36 in 2Q26; 2.32 in 1Q26; 2.71 in 2Q25.
- Net interest spread: 3.04 in 2Q26; 3.03 in 1Q26; 2.80 in 2Q25.
- Net interest margin: 3.70 in 2Q26; 3.70 in 1Q26; 3.62 in 2Q25.
Condensed consolidated average balance sheet and annualized taxable-equivalent rates are included in the accompanying table.
In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.
Taxable-equivalent net interest income increased $41 million, or 2%, compared with the first quarter of 2026, reflecting an additional calendar day, higher interest income from nonaccrual loans and growth in average loans in the recent quarter. Taxable-equivalent net interest income increased $82 million, or 5%, compared with the year-earlier second quarter, reflecting growth in average loans and investment securities and favorable earning asset and interest-bearing liability repricing, including an improved impact from interest rate swap agreements.
Average earning assets
Average earning assets data (dollars in millions):
- Interest-bearing deposits at banks: $15,061 in 2Q26; $16,231 in 1Q26; $19,698 in 2Q25.
- Investment securities: $38,728 in 2Q26; $37,845 in 1Q26; $35,335 in 2Q25.
- Commercial and industrial loans: $66,069 in 2Q26; $63,804 in 1Q26; $61,036 in 2Q25.
- Real estate - commercial loans: $23,553 in 2Q26; $23,496 in 1Q26; $25,333 in 2Q25.
- Real estate - residential loans: $25,086 in 2Q26; $24,817 in 1Q26; $23,684 in 2Q25.
- Consumer loans: $26,719 in 2Q26; $26,306 in 1Q26; $25,354 in 2Q25.
- Total loans: $141,427 in 2Q26; $138,423 in 1Q26; $135,407 in 2Q25.
- Total earning assets: $195,216 in 2Q26; $192,594 in 1Q26; $190,535 in 2Q25.
Supplemental information on loan balances is included in the accompanying table.
Average earning assets rose $2.6 billion from the first quarter of 2026, reflecting loan growth and the purchases of investment securities predominantly in the immediately preceding quarter. The increase in average loans reflected broad-based growth in average commercial and industrial loan balances of $2.3 billion and higher average commercial real estate loan balances of $57 million, average residential real estate loan balances of $269 million and average consumer loan balances of $413 million.
Average earning assets increased $4.7 billion from the second quarter of 2025. Average interest-bearing deposits at banks decreased $4.6 billion as liquidity was deployed to originate loans and purchase investment securities. The growth in average loans reflected higher average balances of commercial and industrial loans of $5.0 billion, including growth in loans spanning most industry types, residential real estate loans of $1.4 billion and consumer loans of $1.4 billion. Those increases were partially offset by a $1.8 billion decline in average commercial real estate loan balances, reflecting payoffs.
Average interest-bearing liabilities
Average interest-bearing liabilities data (dollars in millions):
- Savings and interest-checking deposits: $105,752 in 2Q26; $106,570 in 1Q26; $103,934 in 2Q25.
- Time deposits: $13,808 in 2Q26; $13,059 in 1Q26; $14,171 in 2Q25.
- Total interest-bearing deposits: $119,560 in 2Q26; $119,629 in 1Q26; $118,105 in 2Q25.
- Short-term borrowings: $8,016 in 2Q26; $5,695 in 1Q26; $3,327 in 2Q25.
- Long-term borrowings: $12,778 in 2Q26; $11,064 in 1Q26; $10,936 in 2Q25.
- Total interest-bearing liabilities: $140,354 in 2Q26; $136,388 in 1Q26; $132,368 in 2Q25.
In conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. Previously reported amounts have been adjusted to conform to the current presentation.
Average interest-bearing liabilities in the recent quarter rose $4.0 billion from the first quarter of 2026, reflecting an increase in average short-term borrowings from the FHLB of New York and average long-term borrowings from issuances of senior notes and securitizations.
Average interest-bearing liabilities increased $8.0 billion from the second quarter of 2025, reflecting growth in average savings and interest-checking deposits of $1.8 billion and higher average short-term borrowings from the FHLB of New York and long-term borrowings from issuances of senior notes and securitizations.
Provision for credit losses and asset quality
Selected asset quality data (dollars in millions):
- Nonaccrual loans at period end: $1,208 in 2Q26; $1,240 in 1Q26; $1,573 in 2Q25.
- Real estate and other foreclosed assets: $23 in 2Q26; $27 in 1Q26; $30 in 2Q25.
- Total nonperforming assets: $1,231 in 2Q26; $1,267 in 1Q26; $1,603 in 2Q25.
- Accruing loans past due 90 days or more: $603 in 2Q26; $646 in 1Q26; $496 in 2Q25.
- Nonaccrual loans as a percentage of loans outstanding: 0.84% in 2Q26; 0.89% in 1Q26; 1.16% in 2Q25.
- Allowance for loan losses: $2,176 in 2Q26; $2,136 in 1Q26; $2,197 in 2Q25.
- Allowance for loan losses as a percentage of loans outstanding: 1.52% in 2Q26; 1.53% in 1Q26; 1.61% in 2Q25.
- Reserve for unfunded credit commitments: $95 in 2Q26; $95 in 1Q26; $80 in 2Q25.
- Provision for loan losses: $120 in 2Q26; $125 in 1Q26; $105 in 2Q25.
- Provision for unfunded credit commitments: $0 in 2Q26; $15 in 1Q26; $20 in 2Q25.
- Total provision for credit losses: $120 in 2Q26; $140 in 1Q26; $125 in 2Q25.
- Net charge-offs: $80 in 2Q26; $105 in 1Q26; $108 in 2Q25.
- Net charge-offs as a percentage of average loans (annualized): 0.23% in 2Q26; 0.31% in 1Q26; 0.32% in 2Q25.
Accruing loans past due 90 days or more are predominantly government-guaranteed residential real estate loans.
The provision for credit losses was $120 million in the second quarter of 2026 compared with $140 million in the immediately preceding quarter and $125 million in the second quarter of 2025. The allowance for loan losses as a percent of loans outstanding was 1.52% at June 30, 2026 and 1.53% at March 31, 2026, improved from 1.61% at June 30, 2025. That improvement reflects lower levels of criticized loans.
Nonaccrual loans were $1.2 billion at each of June 30, 2026 and March 31, 2026, compared with $1.6 billion at June 30, 2025. The lower level of nonaccrual loans at June 30, 2026 and March 31, 2026 compared with June 30, 2025 reflects a decrease in commercial and industrial and commercial real estate nonaccrual loans.
Noninterest income
Noninterest income components (dollars in millions):
- Mortgage banking revenues: $127 in 2Q26; $127 in 1Q26; $130 in 2Q25.
- Service charges on deposit accounts: $144 in 2Q26; $139 in 1Q26; $137 in 2Q25.
- Trust income: $197 in 2Q26; $183 in 1Q26; $182 in 2Q25.
- Brokerage services income: $35 in 2Q26; $35 in 1Q26; $31 in 2Q25.
- Trading account and other non-hedging derivative gains: $22 in 2Q26; $14 in 1Q26; $12 in 2Q25.
- Gain (loss) on bank investment securities: $2 in 2Q26; $4 in 1Q26; $0 in 2Q25.
- Other revenues from operations: $213 in 2Q26; $187 in 1Q26; $191 in 2Q25.
- Total noninterest income: $740 in 2Q26; $689 in 1Q26; $683 in 2Q25.
Supplemental information on mortgage banking activities and other revenues from operations is included in the accompanying tables.
Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value, with changes in fair value reflected in mortgage banking revenues. As a result, amortization associated with residential mortgage loan servicing right assets previously recognized in other costs of operations before 2026 is no longer recorded. Instead, beginning in 2026, fair value changes in residential mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in mortgage banking revenues. On December 31, 2025, the Company began economically hedging the risk of fair value changes in these assets through the use of various interest rate derivative contracts, for which changes in fair value are also reflected in mortgage banking revenues.
Noninterest income in the second quarter of 2026 increased $51 million, or 8%, from 2026's first quarter.
- Trust income rose $14 million, reflecting higher revenues from the Company's institutional services and wealth management businesses, including seasonal tax service fees.
- Trading account and other non-hedging derivative gains increased $8 million, reflecting higher revenues from interest rate swap transactions with commercial customers.
- Other revenues from operations increased $26 million, reflecting a $47 million distribution from M&T's investment in BLG in the recent quarter compared with $33 million in the first quarter of 2026 and higher merchant discount and credit card fees.
Noninterest income rose $57 million, or 8%, compared with the second quarter of 2025.
- Service charges on deposit accounts increased $7 million, reflecting higher commercial and consumer service charges.
- Trust income rose $15 million, reflecting higher revenues from the Company's institutional services and wealth management businesses.
- Trading account and other non-hedging derivative gains increased $10 million, reflecting higher revenues from interest rate swap transactions with commercial customers.
- Other revenues from operations increased $22 million, reflecting a $47 million distribution from M&T's investment in BLG in the recent quarter, partially offset by a $15 million gain on the sale of an out-of-footprint residential builder and developer loan portfolio and a $10 million gain on the sale of a subsidiary that specialized in institutional services, each in the second quarter of 2025.
Noninterest expense
Noninterest expense components (dollars in millions):
- Salaries and employee benefits: $826 in 2Q26; $914 in 1Q26; $813 in 2Q25.
- Equipment and net occupancy: $129 in 2Q26; $133 in 1Q26; $130 in 2Q25.
- Outside data processing and software: $154 in 2Q26; $144 in 1Q26; $138 in 2Q25.
- Professional and other services: $89 in 2Q26; $93 in 1Q26; $86 in 2Q25.
- FDIC assessments: $18 in 2Q26; $23 in 1Q26; $22 in 2Q25.
- Advertising and marketing: $27 in 2Q26; $21 in 1Q26; $25 in 2Q25.
- Amortization of core deposit and other intangible assets: $7 in 2Q26; $9 in 1Q26; $9 in 2Q25.
- Other costs of operations: $99 in 2Q26; $101 in 1Q26; $113 in 2Q25.
- Total noninterest expense: $1,349 in 2Q26; $1,438 in 1Q26; $1,336 in 2Q25.
Noninterest expense declined $89 million, or 6%, from the first quarter of 2026.
- Salaries and employee benefits expense decreased $88 million, reflecting seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense in the first quarter of 2026 and lower average staffing levels in the recent quarter, partially offset by the full-quarter impact of annual merit increases and an additional working day in the recent quarter.
- Outside data processing and software costs increased $10 million, reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems.
Noninterest expense increased $13 million, or 1%, from the second quarter of 2025.
- Salaries and employee benefits expense increased $13 million, reflecting higher salaries expense from annual merit and other increases and a rise in incentive compensation, partially offset by lower staffing levels in the recent quarter.
- Outside data processing and software costs rose $16 million, reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems.
- Other costs of operations decreased $14 million, reflecting the amortization associated with residential mortgage loan servicing right assets in the second quarter of 2025, partially offset by higher expense associated with the Company's supplemental executive retirement savings plan.
Income taxes
The Company's effective income tax rate was 23.1% in the second quarter of 2026, compared with 23.0% in the first quarter of 2026 and 23.4% in the second quarter of 2025.
Capital and liquidity
Capital ratios at June 30, 2026 are estimated. M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $220 million and $35 million, respectively, for the quarter ended June 30, 2026. M&T's current stress capital buffer is 2.7%.
M&T repurchased shares of its common stock at a cost of $465 million during the recent quarter, compared with $1.25 billion and $1.08 billion in the first quarter of 2026 and the second quarter of 2025, respectively.
The CET1 capital ratio for M&T was estimated at 10.19% as of June 30, 2026. M&T's total risk-weighted assets at June 30, 2026 are estimated to be $167.9 billion. Reflecting loan growth and share repurchase activity in the recent quarter, M&T's tangible common equity to tangible asset ratio at June 30, 2026 decreased 19 basis points from March 31, 2026 and 60 basis points from June 30, 2025.
While not subject to the liquidity coverage ratio ("LCR") requirements, M&T estimates that its LCR on June 30, 2026 was 106%, exceeding the regulatory minimum standards that would be applicable if it were a Category III institution subject to the Category III reduced LCR requirements.
Conference call
Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 8:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ226.
The conference call will be webcast live through M&T's website at https://ir.mtb.com/news-events/events-presentations. A replay of the call will be available through Wednesday July 22, 2026, by calling (800) 695-2533 or (402) 530-9029 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/news-events/events-presentations.
About M&T
M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com.
Forward-looking statements
This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.
Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted.
While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events, developments and current conditions in the financial services industry, including trust, brokerage and investment management businesses; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in M&T's credit ratings; domestic or international political developments and other geopolitical events, including trade and tariff policies and international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-, brokerage-, and investment management-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the initiation and outcome of potential, pending and future litigation, investigations and governmental proceedings, including tax-related examinations and other matters; operational risk events, including loss resulting from fraud by employees or persons outside M&T and breaches in data and cybersecurity; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, and other factors.
M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2025, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements.
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