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M&T Bank Corporation (NYSE:MTB) announces second quarter 2025 results

By PR Newswire | July 16, 2025, 5:45 AM

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



Change

2Q25 vs.

1Q25



2Q24



Change

2Q25 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

$       1,722



$       1,731



-1



$       3,429



$       3,423



Yield on average earning assets

5.51 %



5.82 %







5.51 %



5.78 %





Cost of interest-bearing liabilities

2.71



3.26







2.71



3.26





Net interest spread

2.80



2.56







2.80



2.52





Contribution of interest-free funds

.82



1.03







.84



1.04





Net interest margin

3.62



3.59







3.64



3.56





Net charge-offs to average total net loans (annualized)

.32



.41







.33



.41





Net operating results (3)























Net operating income

$         724



$         665



9



$       1,318



$       1,208



9

Diluted net operating earnings per common share

4.28



3.79



13



7.66



6.89



11

Return on (annualized):























Average tangible assets

1.44 %



1.31 %







1.32 %



1.20 %





Average tangible common equity

15.54



15.27







14.03



13.99





Efficiency ratio

55.2



55.3







57.8



58.0































At June 30,











Loan quality

2025



2024



Change













Nonaccrual loans

$       1,573



$       2,024



-22 %













Real estate and other foreclosed assets

30



33



-7













Total nonperforming assets

$       1,603



$       2,057



-22













Accruing loans past due 90 days or more (4)

$         496



$         233



113













Government guaranteed loans included in totals above:























Nonaccrual loans

$           75



$           64



17













Accruing loans past due 90 days or more

450



215



110













Nonaccrual loans to total loans

1.16 %



1.50 %

















Allowance for loan losses to total loans

1.61



1.63

















Additional information























Period end common stock price

$     193.99



$     151.36



28













Domestic banking offices

941



957



-2













Full time equivalent employees

22,590



22,110



2













____________________

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)

Predominantly government-guaranteed residential real estate loans.

 

Financial Highlights, Five Quarter Trend





Three Months Ended



June 30,



March 31,



December 31,



September 30,



June 30,

(Dollars in millions, except per share, shares in thousands)

2025



2025



2024



2024



2024

Performance



















Net income

$             716



$             584



$             681



$             721



$             655

Net income available to common shareholders

679



547



644



674



626

Per common share:



















Basic earnings

4.26



3.33



3.88



4.04



3.75

Diluted earnings

4.24



3.32



3.86



4.02



3.73

Cash dividends

1.35



1.35



1.35



1.35



1.35

Common shares outstanding:



















Average - diluted (1)

160,005



165,047



166,969



167,567



167,659

Period end (2)

156,532



162,552



165,526



166,157



167,225

Return on (annualized):



















Average total assets

1.37 %



1.14 %



1.28 %



1.37 %



1.24 %

Average common shareholders' equity

10.39



8.36



9.75



10.26



9.95

Taxable-equivalent net interest income

$           1,722



$           1,707



$           1,740



$           1,739



$           1,731

Yield on average earning assets

5.51 %



5.52 %



5.60 %



5.82 %



5.82 %

Cost of interest-bearing liabilities

2.71



2.70



2.94



3.22



3.26

Net interest spread

2.80



2.82



2.66



2.60



2.56

Contribution of interest-free funds

.82



.84



.92



1.02



1.03

Net interest margin

3.62



3.66



3.58



3.62



3.59

Net charge-offs to average total net loans (annualized)

.32



.34



.47



.35



.41

Net operating results (3)



















Net operating income

$             724



$             594



$             691



$             731



$             665

Diluted net operating earnings per common share

4.28



3.38



3.92



4.08



3.79

Return on (annualized):



















Average tangible assets

1.44 %



1.21 %



1.35 %



1.45 %



1.31 %

Average tangible common equity

15.54



12.53



14.66



15.47



15.27

Efficiency ratio

55.2



60.5



56.8



55.0



55.3























June 30,



March 31,



December 31,



September 30,



June 30,

Loan quality

2025



2025



2024



2024



2024

Nonaccrual loans

$           1,573



$           1,540



$           1,690



$           1,926



$           2,024

Real estate and other foreclosed assets

30



34



35



37



33

Total nonperforming assets

$           1,603



$           1,574



$           1,725



$           1,963



$           2,057

Accruing loans past due 90 days or more (4)

$             496



$             384



$             338



$             288



$             233

Government guaranteed loans included in totals above:



















Nonaccrual loans

75



69



69



69



64

Accruing loans past due 90 days or more

450



368



318



269



215

Nonaccrual loans to total loans

1.16 %



1.14 %



1.25 %



1.42 %



1.50 %

Allowance for loan losses to total loans

1.61



1.63



1.61



1.62



1.63

Additional information



















Period end common stock price

$         193.99



$         178.75



$         188.01



$         178.12



$         151.36

Domestic banking offices

941



955



955



957



957

Full time equivalent employees

22,590



22,291



22,101



21,986



22,110

____________________

(1)

Includes common stock equivalents.

(2)

Includes common stock issuable under deferred compensation plans.

(3)

Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear herein.

(4)

Predominantly government-guaranteed residential real estate loans.

 

Condensed Consolidated Statement of Income





Three Months Ended







Six Months Ended







June 30,







June 30,





(Dollars in millions)

2025



2024



Change



2025



2024



Change

Interest income

$     2,609



$     2,789



-6 %



$     5,169



$     5,534



-7 %

Interest expense

896



1,071



-16



1,761



2,136



-18

Net interest income

1,713



1,718





3,408



3,398



Provision for credit losses

125



150



-17



255



350



-27

Net interest income after provision for credit losses

1,588



1,568



1



3,153



3,048



3

Other income























Mortgage banking revenues

130



106



23



248



210



18

Service charges on deposit accounts

137



127



8



270



251



8

Trust income

182



170



7



359



330



9

Brokerage services income

31



30



3



63



59



6

Trading account and other non-hedging

     derivative gains

12



7



68



21



16



30

Gain (loss) on bank investment securities



(8)







(6)



Other revenues from operations

191



152



25



333



304



9

Total other income

683



584



17



1,294



1,164



11

Other expense























Salaries and employee benefits

813



764



6



1,700



1,597



6

Equipment and net occupancy

130



125



4



262



254



3

Outside data processing and software

138



124



11



274



244



12

Professional and other services

86



91



-4



170



176



-3

FDIC assessments

22



37



-41



45



97



-53

Advertising and marketing

25



27



-7



47



47



-1

Amortization of core deposit and other

     intangible assets

9



13



-24



22



28



-18

Other costs of operations

113



116



-3



231



250



-8

Total other expense

1,336



1,297



3



2,751



2,693



2

Income before taxes

935



855



9



1,696



1,519



12

Income taxes

219



200



9



396



333



19

Net income

$        716



$        655



9 %



$     1,300



$     1,186



10 %

 

Condensed Consolidated Statement of Income, Five Quarter Trend





Three Months Ended



June 30,



March 31,



December 31,



September 30,



June 30,

(Dollars in millions)

2025



2025



2024



2024



2024

Interest income

$         2,609



$         2,560



$         2,707



$         2,785



$         2,789

Interest expense

896



865



979



1,059



1,071

Net interest income

1,713



1,695



1,728



1,726



1,718

Provision for credit losses

125



130



140



120



150

Net interest income after provision for credit losses

1,588



1,565



1,588



1,606



1,568

Other income



















Mortgage banking revenues

130



118



117



109



106

Service charges on deposit accounts

137



133



131



132



127

Trust income

182



177



175



170



170

Brokerage services income

31



32



30



32



30

Trading account and other non-hedging

     derivative gains

12



9



10



13



7

Gain (loss) on bank investment securities





18



(2)



(8)

Other revenues from operations

191



142



176



152



152

Total other income

683



611



657



606



584

Other expense



















Salaries and employee benefits

813



887



790



775



764

Equipment and net occupancy

130



132



133



125



125

Outside data processing and software

138



136



125



123



124

Professional and other services

86



84



80



88



91

FDIC assessments

22



23



24



25



37

Advertising and marketing

25



22



30



27



27

Amortization of core deposit and other

     intangible assets

9



13



13



12



13

Other costs of operations

113



118



168



128



116

Total other expense

1,336



1,415



1,363



1,303



1,297

Income before taxes

935



761



882



909



855

Income taxes

219



177



201



188



200

Net income

$            716



$            584



$            681



$            721



$            655

 

Condensed Consolidated Balance Sheet





June 30,





(Dollars in millions)

2025



2024



Change

ASSETS











Cash and due from banks

$         2,128



$         1,778



20 %

Interest-bearing deposits at banks

19,297



24,792



-22

Trading account

93



99



-6

Investment securities

35,568



29,894



19

Loans:











Commercial and industrial

61,660



60,027



3

Real estate - commercial

24,567



29,532



-17

Real estate - consumer

24,117



23,003



5

Consumer

25,772



22,440



15

Total loans

136,116



135,002



1

Less: allowance for loan losses

2,197



2,204



Net loans

133,919



132,798



1

Goodwill

8,465



8,465



Core deposit and other intangible assets

84



119



-30

Other assets

12,030



10,910



10

Total assets

$     211,584



$     208,855



1 %













LIABILITIES AND SHAREHOLDERS' EQUITY











Noninterest-bearing deposits

$       47,485



$       47,729



-1 %

Interest-bearing deposits

116,968



112,181



4

Total deposits

164,453



159,910



3

Short-term borrowings

2,071



4,764



-57

Long-term borrowings

12,380



11,319



9

Accrued interest and other liabilities

4,155



4,438



-6

Total liabilities

183,059



180,431



1

Shareholders' equity:











Preferred

2,394



2,744



-13

Common

26,131



25,680



2

Total shareholders' equity

28,525



28,424



Total liabilities and shareholders' equity

$     211,584



$     208,855



1 %

 

Condensed Consolidated Balance Sheet, Five Quarter Trend  





June 30,



March 31,



December 31,



September 30,



June 30,

(Dollars in millions)

2025



2025



2024



2024



2024

ASSETS



















Cash and due from banks

$         2,128



$         2,109



$         1,909



$         2,216



$         1,778

Interest-bearing deposits at banks

19,297



20,656



18,873



24,417



24,792

Trading account

93



96



101



102



99

Investment securities

35,568



35,137



34,051



32,327



29,894

Loans:



















Commercial and industrial

61,660



60,596



61,481



61,012



60,027

Real estate - commercial

24,567



25,867



26,764



28,683



29,532

Real estate - consumer

24,117



23,284



23,166



23,019



23,003

Consumer

25,772



24,827



24,170



23,206



22,440

Total loans

136,116



134,574



135,581



135,920



135,002

Less: allowance for loan losses

2,197



2,200



2,184



2,204



2,204

Net loans

133,919



132,374



133,397



133,716



132,798

Goodwill

8,465



8,465



8,465



8,465



8,465

Core deposit and other intangible assets

84



93



94



107



119

Other assets

12,030



11,391



11,215



10,435



10,910

Total assets

$     211,584



$     210,321



$     208,105



$     211,785



$     208,855





















LIABILITIES AND SHAREHOLDERS' EQUITY



















Noninterest-bearing deposits

$       47,485



$       49,051



$       46,020



$       47,344



$       47,729

Interest-bearing deposits

116,968



116,358



115,075



117,210



112,181

Total deposits

164,453



165,409



161,095



164,554



159,910

Short-term borrowings

2,071



1,573



1,060



2,605



4,764

Long-term borrowings

12,380



10,496



12,605



11,583



11,319

Accrued interest and other liabilities

4,155



3,852



4,318



4,167



4,438

Total liabilities

183,059



181,330



179,078



182,909



180,431

Shareholders' equity:



















Preferred

2,394



2,394



2,394



2,394



2,744

Common

26,131



26,597



26,633



26,482



25,680

Total shareholders' equity

28,525



28,991



29,027



28,876



28,424

Total liabilities and shareholders' equity

$     211,584



$     210,321



$     208,105



$     211,785



$     208,855

 

Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates





Three Months Ended



Change in Balance



Six Months Ended







June 30,



March 31,



June 30,



June 30, 2025 from



June 30,



Change



2025



2025



2024



March 31,



June 30,



2025



2024



in

(Dollars in millions)

Balance



Rate



Balance



Rate



Balance



Rate



2025



2024



Balance



Rate



Balance



Rate



Balance

ASSETS



















































Interest-bearing deposits at banks

$   19,698



4.47 %



$   19,695



4.48 %



$   29,294



5.50 %



— %



-33 %



$   19,697



4.48 %



$   29,971



5.50 %



-34 %

Trading account

95



3.46



97



3.42



99



3.47



-3



-4



96



3.44



102



3.45



-6

Investment securities (1)

35,335



3.81



34,480



4.00



29,695



3.61



2



19



34,909



3.90



29,141



3.46



20

Loans:



















































Commercial and industrial

61,036



6.40



61,056



6.36



58,152



7.04





5



61,046



6.38



57,486



7.01



6

Real estate - commercial

25,333



6.31



26,259



6.16



31,458



6.38



-4



-19



25,794



6.24



32,077



6.37



-20

Real estate - consumer

23,684



4.52



23,176



4.44



23,006



4.32



2



3



23,431



4.48



23,071



4.30



2

Consumer

25,354



6.57



24,353



6.57



21,972



6.61



4



15



24,856



6.57



21,558



6.58



15

Total loans

135,407



6.11



134,844



6.06



134,588



6.38





1



135,127



6.08



134,192



6.35



1

Total earning assets

190,535



5.51



189,116



5.52



193,676



5.82



1



-2



189,829



5.51



193,406



5.78



-2

Goodwill

8,465







8,465







8,465











8,465







8,465







Core deposit and other intangible assets

89







92







126







-4



-30



90







133







-32

Other assets

11,172







10,648







9,714







5



15



10,912







9,725







12

Total assets

$   210,261







$   208,321







$   211,981







1 %



-1 %



$   209,296







$   211,729







-1 %





















































LIABILITIES AND SHAREHOLDERS' EQUITY













































Interest-bearing deposits



















































Savings and interest-checking deposits

$   103,963



2.24 %



$   101,564



2.20 %



$   95,955



2.59 %



2 %



8 %



$   102,770



2.22 %



$   95,411



2.60 %



8 %

Time deposits

14,290



3.45



14,220



3.54



19,802



4.41





-28



14,255



3.50



20,192



4.41



-29

Total interest-bearing deposits

118,253



2.38



115,784



2.37



115,757



2.90



2



2



117,025



2.38



115,603



2.91



1

Short-term borrowings

3,327



4.49



2,869



4.52



4,962



5.62



16



-33



3,100



4.51



5,595



5.51



-45

Long-term borrowings

10,936



5.72



11,285



5.65



11,490



5.83



-3



-5



11,109



5.69



10,631



5.82



4

Total interest-bearing liabilities

132,516



2.71



129,938



2.70



132,209



3.26



2





131,234



2.71



131,829



3.26



Noninterest-bearing deposits

45,153







45,436







47,734







-1



-5



45,294







48,175







-6

Other liabilities

3,926







3,949







4,293







-1



-9



3,937







4,343







-9

Total liabilities

181,595







179,323







184,236







1



-1



180,465







184,347







-2

Shareholders' equity

28,666







28,998







27,745







-1



3



28,831







27,382







5

Total liabilities and shareholders' equity

$   210,261







$   208,321







$   211,981







1 %



-1 %



$   209,296







$   211,729







-1 %

Net interest spread





2.80







2.82







2.56















2.80







2.52





Contribution of interest-free funds





.82







.84







1.03















.84







1.04





Net interest margin





3.62 %







3.66 %







3.59 %















3.64 %







3.56 %





____________________

(1)

Yields on investment securities for the three-month and six-month periods ended June 30, 2025 reflect $20 million and $18 million, respectively, 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.

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures





Three Months Ended



Six Months Ended



June 30,



June 30,



2025



2024



2025



2024

(Dollars in millions, except per share)















Income statement data















Net income















Net income

$       716



$       655



$    1,300



$    1,186

Amortization of core deposit and other intangible assets (1)

8



10



18



22

Net operating income

$       724



$       665



$    1,318



$    1,208

Earnings per common share















Diluted earnings per common share

$      4.24



$      3.73



$      7.55



$      6.76

Amortization of core deposit and other intangible assets (1)

.04



.06



.11



.13

Diluted net operating earnings per common share

$      4.28



$      3.79



$      7.66



$      6.89

Other expense















Other expense

$    1,336



$    1,297



$    2,751



$    2,693

Amortization of core deposit and other intangible assets

(9)



(13)



(22)



(28)

Noninterest operating expense

$    1,327



$    1,284



$    2,729



$    2,665

Efficiency ratio















Noninterest operating expense (numerator)

$    1,327



$    1,284



$    2,729



$    2,665

Taxable-equivalent net interest income

$    1,722



$    1,731



$    3,429



$    3,423

Other income

683



584



1,294



1,164

Less: Gain (loss) on bank investment securities



(8)





(6)

Denominator

$    2,405



$    2,323



$    4,723



$    4,593

Efficiency ratio

55.2 %



55.3 %



57.8 %



58.0 %

Balance sheet data















Average assets















Average assets

$ 210,261



$ 211,981



$ 209,296



$ 211,729

Goodwill

(8,465)



(8,465)



(8,465)



(8,465)

Core deposit and other intangible assets

(89)



(126)



(90)



(133)

Deferred taxes

26



30



26



32

Average tangible assets

$ 201,733



$ 203,420



$ 200,767



$ 203,163

Average common equity















Average total equity

$  28,666



$  27,745



$  28,831



$  27,382

Preferred stock

(2,394)



(2,405)



(2,394)



(2,208)

Average common equity

26,272



25,340



26,437



25,174

Goodwill

(8,465)



(8,465)



(8,465)



(8,465)

Core deposit and other intangible assets

(89)



(126)



(90)



(133)

Deferred taxes

26



30



26



32

Average tangible common equity

$  17,744



$  16,779



$  17,908



$  16,608

At end of quarter















Total assets















Total assets

$ 211,584



$ 208,855









Goodwill

(8,465)



(8,465)









Core deposit and other intangible assets

(84)



(119)









Deferred taxes

25



31









Total tangible assets

$ 203,060



$ 200,302









Total common equity















Total equity

$  28,525



$  28,424









Preferred stock

(2,394)



(2,744)









Common equity

26,131



25,680









Goodwill

(8,465)



(8,465)









Core deposit and other intangible assets

(84)



(119)









Deferred taxes

25



31









Total tangible common equity

$  17,607



$  17,127









 ____________________

(1)

After any related tax effect.

 

Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend





Three Months Ended



June 30,



March 31,



December 31,



September 30,



June 30,



2025



2025



2024



2024



2024

(Dollars in millions, except per share)



















Income statement data



















Net income



















Net income

$             716



$             584



$             681



$             721



$             655

Amortization of core deposit and other intangible assets (1)

8



10



10



10



10

Net operating income

$             724



$             594



$             691



$             731



$             665

Earnings per common share



















Diluted earnings per common share

$             4.24



$             3.32



$             3.86



$             4.02



$             3.73

Amortization of core deposit and other intangible assets (1)

.04



.06



.06



.06



.06

Diluted net operating earnings per common share

$             4.28



$             3.38



$             3.92



$             4.08



$             3.79

Other expense



















Other expense

$           1,336



$           1,415



$           1,363



$           1,303



$           1,297

Amortization of core deposit and other intangible assets

(9)



(13)



(13)



(12)



(13)

Noninterest operating expense

$           1,327



$           1,402



$           1,350



$           1,291



$           1,284

Efficiency ratio



















Noninterest operating expense (numerator)

$           1,327



$           1,402



$           1,350



$           1,291



$           1,284

Taxable-equivalent net interest income

$           1,722



$           1,707



$           1,740



$           1,739



$           1,731

Other income

683



611



657



606



584

Less: Gain (loss) on bank investment securities





18



(2)



(8)

Denominator

$           2,405



$           2,318



$           2,379



$           2,347



$           2,323

Efficiency ratio

55.2 %



60.5 %



56.8 %



55.0 %



55.3 %

Balance sheet data



















Average assets



















Average assets

$        210,261



$        208,321



$        211,853



$        209,581



$        211,981

Goodwill

(8,465)



(8,465)



(8,465)



(8,465)



(8,465)

Core deposit and other intangible assets

(89)



(92)



(100)



(113)



(126)

Deferred taxes

26



27



29



28



30

Average tangible assets

$        201,733



$        199,791



$        203,317



$        201,031



$        203,420

Average common equity



















Average total equity

$         28,666



$         28,998



$         28,707



$         28,725



$         27,745

Preferred stock

(2,394)



(2,394)



(2,394)



(2,565)



(2,405)

Average common equity

26,272



26,604



26,313



26,160



25,340

Goodwill

(8,465)



(8,465)



(8,465)



(8,465)



(8,465)

Core deposit and other intangible assets

(89)



(92)



(100)



(113)



(126)

Deferred taxes

26



27



29



28



30

Average tangible common equity

$         17,744



$         18,074



$         17,777



$         17,610



$         16,779

At end of quarter



















Total assets



















Total assets

$        211,584



$        210,321



$        208,105



$        211,785



$        208,855

Goodwill

(8,465)



(8,465)



(8,465)



(8,465)



(8,465)

Core deposit and other intangible assets

(84)



(93)



(94)



(107)



(119)

Deferred taxes

25



26



28



30



31

Total tangible assets

$        203,060



$        201,789



$        199,574



$        203,243



$        200,302

Total common equity



















Total equity

$         28,525



$         28,991



$         29,027



$         28,876



$         28,424

Preferred stock

(2,394)



(2,394)



(2,394)



(2,394)



(2,744)

Common equity

26,131



26,597



26,633



26,482



25,680

Goodwill

(8,465)



(8,465)



(8,465)



(8,465)



(8,465)

Core deposit and other intangible assets

(84)



(93)



(94)



(107)



(119)

Deferred taxes

25



26



28



30



31

Total tangible common equity

$         17,607



$         18,065



$         18,102



$         17,940



$         17,127

____________________

(1)

After any related tax effect.

M&T Bank Corporation

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