M&T Bank Corporation (NYSE:MTB) announces second quarter 2025 results
BUFFALO, N.Y., July 16, 2025 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $716 million or $4.24 of diluted earnings per common share.
(Dollars in millions, except per share data)
2Q25
1Q25
2Q24
Earnings Highlights
Net interest income
$ 1,713
$ 1,695
$ 1,718
Taxable-equivalent adjustment
9
12
13
Net interest income - taxable-equivalent
1,722
1,707
1,731
Provision for credit losses
125
130
150
Noninterest income
683
611
584
Noninterest expense
1,336
1,415
1,297
Net income
716
584
655
Net income available to common shareholders - diluted
679
547
626
Diluted earnings per common share
4.24
3.32
3.73
Return on average assets - annualized
1.37 %
1.14 %
1.24 %
Return on average common shareholders' equity - annualized
10.39
8.36
9.95
Average Balance Sheet
Total assets
$ 210,261
$ 208,321
$ 211,981
Interest-bearing deposits at banks
19,698
19,695
29,294
Investment securities
35,335
34,480
29,695
Loans
135,407
134,844
134,588
Deposits
163,406
161,220
163,491
Borrowings
14,263
14,154
16,452
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin
3.62 %
3.66 %
3.59 %
Efficiency ratio (1)
55.2
60.5
55.3
Net charge-offs to average total loans - annualized
.32
.34
.41
Allowance for loan losses to total loans
1.61
1.63
1.63
Nonaccrual loans to total loans
1.16
1.14
1.50
Common equity Tier 1 ("CET1") capital ratio (2)
10.98
11.50
11.45
Common shareholders' equity per share
$ 166.94
$ 163.62
$ 153.57
(1)
A reconciliation of non-GAAP measures is included in the tables that accompany this release.
(2)
CET1 capital ratio at June 30, 2025 is estimated.
Financial Highlights
Taxable-equivalent net interest income increased $15 million in the recent quarter as compared with the first quarter of 2025 reflecting an additional day of earnings, favorable asset repricing and a lower negative impact from interest rate swap agreements used for hedging purposes, partially offset by $20 million of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United Financial, Inc.
Average loans in the recent quarter reflect higher average balances of consumer and residential real estate loans, partially offset by a decrease in the average balance of commercial real estate loans.
Average deposits increased in the recent quarter as compared with the first quarter of 2025, reflecting higher average savings and interest-checking deposits.
The increase in noninterest income reflects a rise in residential mortgage banking revenues and trust income as well as gains on the sales of an out-of-footprint loan portfolio of $15 million and a subsidiary that specialized in institutional services of $10 million.
The decline in noninterest expense was primarily attributed to lower salaries and employee benefits expense, reflecting seasonal expense recorded in the first quarter of 2025.
Reflecting improved asset quality the allowance for loan losses as a percentage of total loans declined 2 basis points to 1.61% at June 30, 2025.
M&T repurchased 6,073,957 shares of its common stock during the recent quarter for a total cost of $1.1 billion, compared with 3,415,303 shares for a total cost of $662 million in the first quarter of 2025. Reflecting repurchases, M&T's CET1 capital ratio declined to an estimated 10.98% at June 30, 2025, representing a 52 basis-point decrease from 11.50% at March 31, 2025.
Chief Financial Officer Commentary
"M&T's consistent profitability has supported a significant return of capital to shareholders while maintaining resiliency entering the second half of the year. We are thrilled with a reduction of M&T's stress capital buffer and we remain committed to prudent risk management for the benefit of all of our stakeholders. Our teams continue to work with customers each and every day to provide solutions for their financial success. This summer, expect to see M&T employees out in force assisting customers and volunteering in the communities we serve to make a difference in people's lives."
- Daryl N. Bible, M&T's Chief Financial Officer
Contact:
Investor Relations:
Steve Wendelboe
716.842.5138
Media Relations:
Frank Lentini
929.651.0447
Non-GAAP Measures (1)
(Dollars in millions, except per share data)
2Q25
1Q25
Change 2Q25 vs. 1Q25
2Q24
Change 2Q25 vs. 2Q24
Net operating income
$ 724
$ 594
22 %
$ 665
9 %
Diluted net operating earnings per common share
4.28
3.38
27
3.79
13
Annualized return on average tangible assets
1.44 %
1.21 %
1.31 %
Annualized return on average tangible common equity
15.54
12.53
15.27
Efficiency ratio
55.2
60.5
55.3
Tangible equity per common share
$ 112.48
$ 111.13
1
$ 102.42
10
____________________
(1)
A reconciliation of non-GAAP measures is included in the tables that accompany this release.
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.
Taxable-equivalent Net Interest Income
(Dollars in millions)
2Q25
1Q25
Change 2Q25 vs. 1Q25
2Q24
Change 2Q25 vs. 2Q24
Average earning assets
$ 190,535
$ 189,116
1 %
$ 193,676
-2 %
Average interest-bearing liabilities
132,516
129,938
2
132,209
—
Net interest income - taxable-equivalent
1,722
1,707
1
1,731
-1
Yield on average earning assets
5.51 %
5.52 %
5.82 %
Cost of interest-bearing liabilities
2.71
2.70
3.26
Net interest spread
2.80
2.82
2.56
Net interest margin
3.62
3.66
3.59
Taxable-equivalent net interest income increased $15 million, or 1%, in the recent quarter as compared with the first quarter of 2025.
Average interest-bearing deposits at banks were essentially unchanged and the yield received on those deposits declined 1 basis point.
Average investment securities increased $855 million and the rates earned on those securities decreased 19 basis points reflecting $20 million of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from an acquisition.
Average loans increased $563 million and the yield received on those loans, including the impact from interest rate swap agreements used for hedging purposes, rose 5 basis points.
Average interest-bearing deposits increased $2.5 billion and the rates paid on such deposits rose 1 basis point.
Average borrowings rose $109 million and the rates paid on such borrowings increased 1 basis point.
Taxable-equivalent net interest income decreased $9 million as compared with the year-earlier second quarter.
Average interest-bearing deposits at banks decreased $9.6 billion and the yield received on those deposits declined 103 basis points.
Average investment securities increased $5.6 billion and the yield earned on those securities rose 20 basis points.
Average loans grew $819 million while the yield received on those loans decreased 27 basis points.
Average interest-bearing deposits rose $2.5 billion while the rates paid on those deposits declined 52 basis points.
Average borrowings decreased $2.2 billion and the rates paid on such borrowings declined 34 basis points.
Average Earning Assets
(Dollars in millions)
2Q25
1Q25
Change 2Q25 vs. 1Q25
2Q24
Change 2Q25 vs. 2Q24
Interest-bearing deposits at banks
$ 19,698
$ 19,695
— %
$ 29,294
-33 %
Trading account
95
97
-3
99
-4
Investment securities
35,335
34,480
2
29,695
19
Loans
Commercial and industrial
61,036
61,056
—
58,152
5
Real estate - commercial
25,333
26,259
-4
31,458
-19
Real estate - consumer
23,684
23,176
2
23,006
3
Consumer
25,354
24,353
4
21,972
15
Total loans
135,407
134,844
—
134,588
1
Total earning assets
$ 190,535
$ 189,116
1
$ 193,676
-2
Average earning assets increased $1.4 billion, or 1%, from the first quarter of 2025.
Average interest-bearing deposits at banks were essentially unchanged.
Average investment securities increased $855 million primarily due to purchases of fixed rate agency mortgage-backed securities and U.S. Treasury securities during the first and second quarters of 2025.
Average loans increased $563 million primarily reflective of higher average consumer loans of $1.0 billion, including higher average recreational finance and automobile loans, and an increase in average residential real estate loans of $508 million, partially offset by a decline in average commercial real estate loans of $926 million, reflecting payoffs and the sale of an out-of-footprint residential builder and developer loan portfolio.
Average earning assets decreased $3.1 billion, or 2%, from the second quarter of 2024.
Average interest-bearing deposits at banks decreased $9.6 billion reflecting purchases of investment securities, lower average balances of borrowings and share repurchases.
Average investment securities increased $5.6 billion primarily reflecting purchases of fixed rate agency mortgage-backed securities and U.S. Treasury securities since the second quarter of 2024.
Average loans increased $819 million resulting from higher average commercial and industrial loans of $2.9 billion, reflecting growth spanning most industry types, and a rise in average consumer loans of $3.4 billion, reflecting higher average balances of recreational finance and automobile loans. Partially offsetting those increases was a $6.1 billion decline in average commercial real estate loans.
Average Interest-bearing Liabilities
(Dollars in millions)
2Q25
1Q25
Change 2Q25 vs. 1Q25
2Q24
Change 2Q25 vs. 2Q24
Interest-bearing deposits
Savings and interest-checking deposits
$ 103,963
$ 101,564
2 %
$ 95,955
8 %
Time deposits
14,290
14,220
—
19,802
-28
Total interest-bearing deposits
118,253
115,784
2
115,757
2
Short-term borrowings
3,327
2,869
16
4,962
-33
Long-term borrowings
10,936
11,285
-3
11,490
-5
Total interest-bearing liabilities
$ 132,516
$ 129,938
2
$ 132,209
—
Brokered savings and interest-checking deposits
$ 9,921
$ 9,991
-1 %
$ 8,193
21 %
Brokered time deposits
568
777
-27
3,826
-85
Total brokered deposits
$ 10,489
$ 10,768
-3
$ 12,019
-13
Average interest-bearing liabilities rose $2.6 billion, or 2%, in the recent quarter as compared with the first quarter of 2025 reflecting an increase in average savings and interest-checking deposits.
Average interest-bearing liabilities increased $307 million from the second quarter of 2024.
Average interest-bearing deposits rose $2.5 billion. Non-brokered interest-bearing deposits increased $4.0 billion reflecting a $6.3 billion increase in average non-brokered savings and interest-checking deposits, partially offset by a $2.3 billion decline in average non-brokered time deposits. A $1.5 billion decline in average brokered deposits reflected maturities of brokered time deposits, partially offset by higher average balances of brokered savings and interest-checking deposits.
Average borrowings decreased $2.2 billion reflecting lower average short-term and long-term borrowings from the FHLB of New York, partially offset by issuances of senior notes and other long-term debt since the second quarter of 2024.
Provision for Credit Losses/Asset Quality
(Dollars in millions)
2Q25
1Q25
Change
2Q25 vs. 1Q25
2Q24
Change
2Q25 vs. 2Q24
At end of quarter
Nonaccrual loans
$ 1,573
$ 1,540
2 %
$ 2,024
-22 %
Real estate and other foreclosed assets
30
34
-11
33
-7
Total nonperforming assets
1,603
1,574
2
2,057
-22
Accruing loans past due 90 days or more (1)
496
384
29
233
113
Nonaccrual loans as % of loans outstanding
1.16 %
1.14 %
1.50 %
Allowance for loan losses
$ 2,197
$ 2,200
—
$ 2,204
—
Allowance for loan losses as % of loans outstanding
1.61 %
1.63 %
1.63 %
Reserve for unfunded credit commitments
$ 80
$ 60
33
$ 60
33
For the period
Provision for loan losses
$ 105
$ 130
-19
$ 150
-30
Provision for unfunded credit commitments
20
—
100
—
100
Total provision for credit losses
125
130
-4
150
-17
Net charge-offs
108
114
-5
137
-21
Net charge-offs as % of average loans (annualized)
.32 %
.34 %
.41 %
____________________
(1)
Predominantly government-guaranteed residential real estate loans.
The provision for credit losses was $125 million in the second quarter of 2025 as compared with $130 million in the immediately preceding quarter and $150 million in the second quarter of 2024. The allowance for loan losses as a percentage of loans outstanding decreased from 1.63% at March 31, 2025 to 1.61% at June 30, 2025 reflecting lower levels of criticized commercial real estate loans. Net charge-offs totaled $108 million in 2025's second quarter as compared with $114 million in 2025's first quarter and $137 million in the year-earlier quarter, representing .32%, .34% and .41%, respectively, of average loans outstanding.
Nonaccrual loans were $1.6 billion at June 30, 2025, compared with $1.5 billion at March 31, 2025 and $2.0 billion at June 30, 2024. The lower level of nonaccrual loans at the two most recent quarter ends as compared with June 30, 2024 predominantly reflects decreases in commercial real estate nonaccrual loans.
Noninterest Income
(Dollars in millions)
2Q25
1Q25
Change 2Q25 vs. 1Q25
2Q24
Change 2Q25 vs. 2Q24
Mortgage banking revenues
$ 130
$ 118
11 %
$ 106
23 %
Service charges on deposit accounts
137
133
4
127
8
Trust income
182
177
3
170
7
Brokerage services income
31
32
-1
30
3
Trading account and other non-hedging derivative gains
12
9
15
7
68
Gain (loss) on bank investment securities
—
—
—
(8)
—
Other revenues from operations
191
142
33
152
25
Total
$ 683
$ 611
12
$ 584
17
Noninterest income in the second quarter of 2025 increased $72 million, or 12%, from 2025's first quarter.
Mortgage banking revenues rose $12 million reflecting increased residential mortgage loan servicing income.
Trust income increased $5 million reflecting seasonal tax service fees.
Other revenues from operations increased $49 million reflecting a $15 million gain on the sale of an out-of-footprint residential builder and developer loan portfolio, a $10 million gain on the sale of a subsidiary that specialized in institutional services, a rise in merchant discount and credit card fees and higher loan syndication fees in the recent quarter.
Noninterest income rose $99 million, or 17%, as compared with the second quarter of 2024.
Mortgage banking revenues rose $24 million predominantly due to increased residential mortgage loan servicing income.
Service charges on deposit accounts increased $10 million primarily from higher commercial service charges.
Trust income increased $12 million reflecting higher revenues from the Company's global capital markets and wealth advisory services businesses.
The loss on bank investment securities in the second quarter of 2024 reflected realized losses on sales of certain non-agency investment securities.
Other revenues from operations increased $39 million reflecting a $15 million gain on the sale of an out-of-footprint loan portfolio, a $10 million gain on the sale of a subsidiary that specialized in institutional services and an increase in letter of credit and other credit-related fees.
Noninterest Expense
(Dollars in millions)
2Q25
1Q25
Change2Q25 vs. 1Q25
2Q24
Change2Q25 vs. 2Q24
Salaries and employee benefits
$ 813
$ 887
-8 %
$ 764
6 %
Equipment and net occupancy
130
132
-2
125
4
Outside data processing and software
138
136
1
124
11
Professional and other services
86
84
4
91
-4
FDIC assessments
22
23
-7
37
-41
Advertising and marketing
25
22
14
27
-7
Amortization of core deposit and other intangible assets
9
13
-27
13
-24
Other costs of operations
113
118
-5
116
-3
Total
$ 1,336
$ 1,415
-6
$ 1,297
3
Noninterest expense declined $79 million, or 6%, from the first quarter of 2025. Salaries and employee benefits expense decreased $74 million, reflecting seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expense in the first quarter of 2025, partially offset by the full-quarter impact of annual merit increases awarded in the first quarter of 2025 and an additional working day in the recent quarter.
Noninterest expense increased $39 million, or 3%, from the second quarter of 2024.
Salaries and employee benefits expense increased $49 million reflecting annual merit and other increases, higher average employee staffing levels and a rise in medical benefits expense.
Outside data processing and software costs rose $14 million reflecting higher software maintenance expenses.
The decrease in FDIC assessments reflects a lower level of criticized loans and a special assessment expense of $5 million in the second quarter of 2024.
Income Taxes
The Company's effective income tax rate was 23.4% in each of the second quarters of 2025 and 2024, compared with 23.2% in the first quarter of 2025.
Capital
2Q25
1Q25
2Q24
CET1
10.98 %
(1)
11.50 %
11.45 %
Tier 1 capital
12.50
(1)
13.04
13.23
Total capital
13.96
(1)
14.50
14.88
Tangible capital, common
8.67
8.95
8.55
____________________
(1)
Capital ratios at June 30, 2025 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 $215 million and $35 million, respectively, for the quarter ended June 30, 2025. M&T's current stress capital buffer is 3.8%. In June 2025, the Federal Reserve released the results of its most recent supervisory stress tests, in which M&T elected to participate. Based on those results, M&T's stress capital buffer is estimated to be 2.7% effective October 1, 2025.
The CET1 capital ratio for M&T was estimated at 10.98% as of June 30, 2025. M&T's total risk-weighted assets at June 30, 2025 are estimated to be $158.2 billion.
M&T repurchased 6,073,957 shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $175.93 resulting in a total cost, including the share repurchase excise tax, of $1.1 billion, compared with 3,415,303 shares at an average cost per share of $192.06 and a total cost, including the share repurchase excise tax, of $662 million in the first quarter of 2025. No share repurchases occurred in the second quarter of 2024.
Conference Call
Investors will have an opportunity to listen to M&T's conference call to discuss second quarter financial results today at 11:00 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 #MTBQ225. 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 23, 2025 by calling (800) 688-9459 or (402) 220-1373 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 and developments in the financial services industry, including industry conditions; 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-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 outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; 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, 2024, 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.
Financial Highlights
Three Months Ended
Six Months Ended
June 30,
June 30,
(Dollars in millions, except per share, shares in thousands)
2025
2024
Change
2025
2024
Change
Performance
Net income
$ 716
$ 655
9 %
$ 1,300
$ 1,186
10 %
Net income available to common shareholders
679
626
8
1,226
1,131
8
Per common share:
Basic earnings
4.26
3.75
14
7.58
6.79
12
Diluted earnings
4.24
3.73
14
7.55
6.76
12
Cash dividends
1.35
1.35
—
2.70
2.65
2
Common shares outstanding:
Average - diluted (1)
160,005
167,659
-5
162,511
167,372
-3
Period end (2)
156,532
167,225
-6
156,532
167,225
-6
Return on (annualized):
Average total assets
1.37 %
1.24 %
1.25 %
1.13 %
Average common shareholders' equity
10.39
9.95
9.37
9.05
Taxable-equivalent net interest income
