M&T Bank Corporation has reported its first-quarter 2025 results, with a net income of $584 million or $3.32 of diluted earnings per common share. This represents a decrease from the previous quarter's net income of $681 million and diluted earnings per common share of $3.86.
The net interest margin widened to 3.66% in the recent quarter from 3.58% in the fourth quarter of 2024. Noninterest income decreased to $611 million in the first quarter of 2025 from $657 million in the fourth quarter of 2024. Noninterest expenses rose to $1,415 million in the first quarter of 2025 from $1,363 million in the fourth quarter of 2024.
The provision for credit losses was $130 million in the first quarter of 2025, down from $140 million in the immediately preceding quarter and $200 million in the first quarter of 2024. Net charge-offs totaled $114 million in the first quarter of 2025, a decrease from $160 million in the fourth quarter of 2024 and $138 million in the first quarter of 2024.
Average earning assets decreased by $4.0 billion, or 2%, from the fourth quarter of 2024. Average interest-bearing deposits at banks decreased by $3.9 billion, while average investment securities increased by $801 million. Average loans and leases decreased by $879 million.
The press release also notes that M&T repurchased 3,415,303 shares of its common stock for a total cost of $662 million, including the share repurchase excise tax, in the first quarter of 2025. This reflects a decrease from the 4,289,616 shares repurchased in the fourth quarter of 2024.
In terms of asset quality, nonaccrual loans were $1.5 billion at the end of the first quarter of 2025, reflecting an improvement from $1.69 billion at the end of the fourth quarter of 2024 and $2.302 billion at the end of the first quarter of 2024.
M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which it excludes the after-tax effect of amortization of core deposit and other intangible assets, and expenses associated with merging acquired operations into M&T, considering them to be “nonoperating” in nature.
The taxable-equivalent net interest income decreased by $33 million in the first quarter of 2025 as compared with the fourth quarter of 2024. The average yield on earning assets decreased to 5.52% in the first quarter of 2025 from 5.60% in the fourth quarter of 2024. The cost of interest-bearing liabilities also decreased to 2.70% from 2.94% over the same period.
Finally, the tangible equity per common share increased to $111.13 in the first quarter of 2025 from $109.36 in the fourth quarter of 2024. The market has reacted to these announcements by moving the company's shares 1.2% to a price of $159.88. If you want to know more, read the company's complete 8-K report here.
