M&T Bank reported second-quarter 2026 net income of $818 million, up from $664 million in the first quarter and $716 million a year earlier. Diluted earnings per common share rose to $5.32 from $4.13 in the prior quarter and $4.24 in the second quarter of 2025.
Taxable-equivalent net interest income increased to $1.804 billion from $1.763 billion in the first quarter and $1.722 billion a year ago. The net interest margin held at 3.70%, unchanged from the first quarter and up from 3.62% in last year’s second quarter.
Average loans climbed to $141.427 billion from $138.423 billion in the first quarter and $135.407 billion a year earlier. Average commercial and industrial loans rose to $66.069 billion from $63.804 billion in the first quarter and $61.036 billion a year earlier. Average consumer loans increased to $26.719 billion from $26.306 billion, while average residential real estate loans edged up to $25.086 billion from $24.817 billion. Average commercial real estate loans were $23.553 billion, little changed from the first quarter, but down from $25.333 billion a year earlier.
Average earning assets increased to $195.216 billion from $192.594 billion in the first quarter and $190.535 billion in the second quarter of 2025. Average interest-bearing deposits at banks fell to $15.061 billion from $16.231 billion in the first quarter and $19.698 billion a year earlier.
Average interest-bearing liabilities rose to $140.354 billion from $136.388 billion in the first quarter and $132.368 billion a year earlier. Short-term borrowings increased to $8.016 billion from $5.695 billion, and long-term borrowings rose to $12.778 billion from $11.064 billion.
Provision for credit losses declined to $120 million from $140 million in the first quarter and $125 million a year earlier. Net charge-offs fell to $80 million from $105 million in the first quarter and $108 million a year earlier. Net charge-offs as a percentage of average loans improved to 0.23% from 0.31% and 0.32%.
Nonaccrual loans were $1.208 billion at June 30, down from $1.240 billion at March 31 and $1.573 billion a year earlier. Nonperforming assets totaled $1.231 billion, compared with $1.267 billion in the prior quarter and $1.603 billion a year earlier. The allowance for loan losses was $2.176 billion, up from $2.136 billion in the first quarter, while the ratio of allowance to total loans slipped to 1.52% from 1.53% and was down from 1.61% a year earlier.
Noninterest income rose to $740 million from $689 million in the first quarter and $683 million a year earlier. Trust income increased to $197 million from $183 million and $182 million. Service charges on deposit accounts rose to $144 million from $139 million and $137 million. Trading account and other non-hedging derivative gains climbed to $22 million from $14 million and $12 million. Other revenues from operations increased to $213 million from $187 million and $191 million.
Noninterest expense fell to $1.349 billion from $1.438 billion in the first quarter, though it was up from $1.336 billion a year earlier. Salaries and employee benefits dropped to $826 million from $914 million, while outside data processing and software rose to $154 million from $144 million. FDIC assessments fell to $18 million from $23 million.
The efficiency ratio improved to 52.8% from 58.3% in the first quarter and 55.2% in the second quarter of 2025. Return on average assets increased to 1.51% from 1.26% and 1.37%, while return on average common shareholders’ equity rose to 12.30% from 9.67% and 10.39%.
M&T repurchased 2.1 million shares for $465 million during the quarter. Common shareholders’ equity per share increased to $176.03 from $173.82 in the first quarter and $166.94 a year earlier. Tangible equity per common share rose to $117.41 from $115.96 and $112.48. The CET1 capital ratio was estimated at 10.19%, down from 10.33% in the first quarter and 10.99% in the second quarter of 2025. The market has reacted to these announcements by moving the company's shares 1.0% to a price of $244.28. Check out the company's full 8-K submission here.
