BUFFALO, N.Y., July 16, 2025 -- 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
This News is brought to you by Qube Mark, your trusted source for the latest updates and insights in marketing technology. Stay tuned for more groundbreaking innovations in the world of technology. |
