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 the second quarter of 2025.
Average loans climbed to $141.427 billion from $138.423 billion in the first quarter and $135.407 billion a year earlier. Commercial and industrial loans averaged $66.069 billion, up from $63.804 billion in the first quarter and $61.036 billion a year ago. Average commercial real estate loans were $23.553 billion, essentially flat from the first quarter and down from $25.333 billion in the year-earlier quarter. Average residential real estate loans rose to $25.086 billion from $24.817 billion and $23.684 billion, while average consumer loans increased to $26.719 billion from $26.306 billion and $25.354 billion.
Average earning assets rose 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 ago. Investment securities increased to $38.728 billion from $37.845 billion and $35.335 billion.
Average interest-bearing liabilities increased to $140.354 billion from $136.388 billion in the first quarter and $132.368 billion a year earlier. Short-term borrowings rose to $8.016 billion from $5.695 billion, and long-term borrowings increased to $12.778 billion from $11.064 billion.
Noninterest income rose to $740 million from $689 million in the first quarter and $683 million a year ago. 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 declined to $1.349 billion from $1.438 billion in the first quarter, while edging up from $1.336 billion a year earlier. Salaries and employee benefits fell to $826 million from $914 million in the first quarter and were up slightly from $813 million a year earlier. Outside data processing and software costs increased to $154 million from $144 million and $138 million.
The provision for credit losses fell to $120 million from $140 million in the first quarter and $125 million in the second quarter of 2025. Net charge-offs dropped to $80 million from $105 million and $108 million. Nonaccrual loans were $1.208 billion, down from $1.240 billion in the first quarter and $1.573 billion a year earlier. The allowance for loan losses was $2.176 billion, compared with $2.136 billion in the first quarter and $2.197 billion a year ago, while the ratio of allowance for loan losses to total loans was 1.52%, down from 1.53% and 1.61%.
The efficiency ratio improved to 52.8% from 58.3% in the first quarter and 55.2% a year earlier. Return on average assets rose to 1.51% from 1.26% and 1.37%. Return on average common shareholders’ equity increased to 12.30% from 9.67% and 10.39%.
Common equity tier 1 capital ratio was estimated at 10.19% at June 30, 2026, down from 10.33% at March 31 and 10.99% a year earlier. Common shareholders’ equity per share rose to $176.03 from $173.82 and $166.94.
M&T repurchased 2.1 million shares in the quarter for $465 million. Following these announcements, the company's shares moved 2.49%, and are now trading at a price of $247.88. Check out the company's full 8-K submission here.
