M&T Bank Corp. recently released its 10-Q report. M&T Bank Corporation is a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association, providing retail and commercial banking products and services in the United States. Its operations are organized into Commercial Bank, Retail Bank, and Institutional Services and Wealth Management, with offerings that include commercial lending, deposit products, cash management, residential mortgage and consumer loans, and trust, fiduciary, and investment management services. The company was founded in 1856 and is headquartered in Buffalo, New York.
In Item 2, management said the quarterly results should be read alongside the consolidated financial statements and the company’s 2025 Annual Report. M&T also said it changed its methodology for calculating annualized taxable-equivalent rates in the second quarter of 2026 after implementing a new general ledger platform, and prior-period amounts were adjusted to match the current presentation.
For the second quarter ended June 30, 2026, net interest income was $1.792 billion, up $40 million from $1.752 billion in the first quarter. On a taxable-equivalent basis, net interest income was $1.804 billion, compared with $1.763 billion in the prior quarter. The net interest margin held at 3.70%.
The provision for credit losses fell to $120 million from $140 million in the first quarter. Management tied the decline to lower criticized loans and the absence of a first-quarter provision for unfunded credit commitments, partly offset by loan growth in the second quarter.
Other income rose to $740 million from $689 million, driven by a higher distribution from M&T’s investment in BLG, along with higher trust income and more revenue from interest rate swap agreements for commercial customers. Other expense declined to $1.349 billion from $1.438 billion, mainly because the first quarter included seasonal salaries and employee benefits costs.
Net income increased to $818 million from $664 million in the first quarter. Diluted earnings per share rose to $5.32 from $4.13, while basic earnings per share increased to $5.35 from $4.16. Return on average assets improved to 1.51% from 1.26%, and return on average common shareholders’ equity rose to 12.30% from 9.67%.
For the first six months of 2026, net interest income reached $3.544 billion, up from $3.408 billion a year earlier. On a taxable-equivalent basis, net interest income was $3.567 billion, compared with $3.429 billion in the first half of 2025, and the net interest margin widened to 3.70% from 3.64%.
Provision for credit losses totaled $260 million in the first half, versus $255 million a year earlier. Other income climbed to $1.429 billion from $1.294 billion, helped by $80 million of distributions from BLG in the first quarter and another distribution in the second quarter, plus higher trust income and swap-related revenue. Other expense increased to $2.787 billion from $2.751 billion, reflecting higher salaries and employee benefits, data processing and software costs, and professional services.
First-half net income was $1.482 billion, up from $1.300 billion. Diluted earnings per share increased to $9.44 from $7.55, and basic earnings per share rose to $9.49 from $7.58. Return on average assets improved to 1.39% from 1.25%, and return on average common shareholders’ equity increased to 10.98% from 9.37%.
M&T said it elected on January 1, 2026 to measure residential mortgage loan servicing right assets at fair value, with changes in fair value reflected in mortgage banking revenues. The company recorded a $263 million increase in capitalized servicing assets and a corresponding after-tax increase to retained earnings of $197 million, which lifted the CET1 capital ratio by 8 basis points on the election date.
The company repurchased 2.1 million shares of common stock in the second quarter for $465 million. In the first quarter, it repurchased 5.5 million shares for $1.25 billion. For the first six months of 2026, share repurchases totaled 7.6 million shares at a cost of $1.71 billion, compared with 9.5 million shares for $1.74 billion in the first half of 2025.
On the balance sheet, average loans were $141.427 billion in the second quarter, up from $138.423 billion in the first quarter. Average commercial and industrial loans were $66.069 billion, commercial real estate loans were $23.553 billion, residential real estate loans were $25.086 billion, and consumer loans were $26.719 billion. Average total deposits were $163.524 billion, including $119.560 billion of interest-bearing deposits and $43.964 billion of noninterest-bearing deposits.
For the first half of 2026, average loans were $139.933 billion, compared with $135.127 billion a year earlier. Average total deposits were $163.848 billion, up from $162.175 billion. Average interest-bearing liabilities were $138.382 billion, compared with $131.090 billion in the prior-year period, while average shareholders’ equity was $28.291 billion versus $28.831 billion. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $252.22. For more information, read the company's full 10-Q submission here.
