(Dollars in millions, except per share data)
1Q26
4Q25
1Q25
Earnings Highlights
Net interest income
$ 1,752
$ 1,779
$ 1,695
Taxable-equivalent adjustment
11
11
12
Net interest income - taxable-equivalent
1,763
1,790
1,707
Provision for credit losses
140
125
130
Noninterest income
689
696
611
Noninterest expense
1,438
1,379
1,415
Net income
664
759
584
Net income available to common shareholders - diluted
620
718
547
Diluted earnings per common share
4.13
4.67
3.32
Return on average assets - annualized
1.26 %
1.41 %
1.14 %
Return on average common shareholders' equity - annualized
9.67
10.87
8.36
Average Balance Sheet
Total assets
$ 213,828
$ 212,891
$ 208,321
Interest-bearing deposits at banks
16,231
17,964
19,695
Investment securities
37,845
36,705
34,480
Loans
138,423
137,600
134,844
Deposits
164,268
165,057
161,220
Borrowings
16,759
14,619
14,154
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin
3.71 %
3.69 %
3.66 %
Efficiency ratio (1)
58.3
55.1
60.5
Net charge-offs to average total loans - annualized
.31
.54
.34
Allowance for loan losses to total loans
1.53
1.53
1.63
Nonaccrual loans to total loans
.89
.90
1.14
Common equity Tier 1 ("CET1") capital ratio (2)
10.33
10.84
11.50
Common shareholders' equity per share
$ 173.82
$ 173.49
$ 163.62
(1)
A reconciliation of non-GAAP measures is included in the tables that accompany this release.
(2)
CET1 capital ratio at March 31, 2026 is estimated.
Financial Highlights
Net interest margin widened 2 basis points from the fourth quarter of 2025 to 3.71% in the recent quarter reflecting a decline in funding costs that outpaced a reduction in yields received on earning assets.
Growth in average loans in the recent quarter reflects higher average balances of commercial and industrial loans, partially offset by lower average balances of commercial real estate and consumer loans.
Noninterest income reflects the impact of the Company's election on January 1, 2026 to prospectively measure its residential mortgage loan servicing right assets at fair value and lower gains on commercial mortgage loans originated for sale, partially offset by a $33 million distribution from M&T's investment in Bayview Lending Group LLC ("BLG") in the recent quarter.
The increase in noninterest expense includes seasonal salaries and employee benefits expense of $115 million, partially offset by lower other costs of operations reflecting a $30 million contribution to The M&T Charitable Foundation and amortization of residential mortgage loan servicing right assets each in the fourth quarter of 2025.
The allowance for loan losses as a percent of total loans remained unchanged at March 31, 2026.
In the recent quarter M&T repurchased 5.5 million shares of its common stock in accordance with its capital plan resulting in a total cost of $1.25 billion. M&T's CET1 capital ratio is estimated to be 10.33% at March 31, 2026.
Chief Financial Officer Commentary
"M&T continued to produce strong operating results and return capital to its shareholders in the recent quarter while investing in its businesses and expanding its operational capabilities in support of our strategic objectives of operational excellence and teaming for growth to meet the needs of our customers and make a difference in people's lives. I am pleased to report the successful conversion of our core general ledger platform earlier this week."
- Daryl N. Bible, M&T's Chief Financial Officer
Contact:
Investor Relations:
Rajiv Ranjan
716.842.5138
Steve Wendelboe
716.842.5138
Media Relations:
Frank Lentini
929.651.0447
Non-GAAP Measures (1)
(Dollars in millions, except per share data)
1Q26
4Q25
Change 1Q26 vs. 4Q25
1Q25
Change 1Q26 vs. 1Q25
Net operating income
$ 671
$ 767
-12 %
$ 594
13 %
Diluted net operating earnings per common share
4.18
4.72
-11
3.38
24
Annualized return on average tangible assets
1.33 %
1.49 %
1.21 %
Annualized return on average tangible common equity
14.51
16.24
12.53
Efficiency ratio
58.3
55.1
60.5
Tangible equity per common share
$ 115.96
$ 117.45
-1
$ 111.13
4
_________________
(1)
A reconciliation of non-GAAP measures is included in the tables that accompany this release.
M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be "nonoperating" in nature.
Taxable-equivalent Net Interest Income
(Dollars in millions)
1Q26
4Q25
Change 1Q26 vs. 4Q25
1Q25
Change 1Q26 vs. 1Q25
Average earning assets
$ 192,594
$ 192,366
— %
$ 189,116
2 %
Average interest-bearing liabilities
136,480
135,492
1
129,938
5
Net interest income - taxable-equivalent
1,763
1,790
-2
1,707
3
Yield on average earning assets
5.36 %
5.46 %
5.52 %
Cost of interest-bearing liabilities
2.33
2.51
2.70
Net interest spread
3.03
2.95
2.82
Net interest margin
3.71
3.69
3.66
Taxable-equivalent net interest income decreased $27 million, or 2%, as compared with the fourth quarter of 2025 reflecting two less calendar days in the recent quarter. Taxable-equivalent net interest income increased $56 million, or 3%, as compared with the year-earlier first quarter reflecting growth in average loans and investment securities and favorable earning asset and interest-bearing liability repricing, including an improved impact from interest rate swap agreements.
Average Earning Assets
(Dollars in millions)
1Q26
4Q25
Change 1Q26 vs. 4Q25
1Q25
Change 1Q26 vs. 1Q25
Interest-bearing deposits at banks
$ 16,231
$ 17,964
-10 %
$ 19,695
-18 %
Trading account
95
97
-2
97
-3
Investment securities
37,845
36,705
3
34,480
10
Loans
Commercial and industrial
63,804
62,257
2
61,056
5
Real estate - commercial
23,496
24,101
-3
26,259
-11
Real estate - residential
24,817
24,765
—
23,176
7
Consumer
26,306
26,477
-1
24,353
8
Total loans
138,423
137,600
1
134,844
3
Total earning assets
$ 192,594
$ 192,366
—
$ 189,116
2
Average earning assets rose $228 million from the fourth quarter of 2025 reflecting loan growth and purchases of investment securities, partially offset by a decrease in interest-bearing deposits at banks. Loan growth in the recent quarter reflected higher average commercial and industrial loan balances of $1.5 billion, including higher balances of loans to the financial and insurance industry, partially offset by lower average balances of commercial real estate loans of $605 million and consumer loans of $171 million.
Average earning assets increased $3.5 billion from the first quarter of 2025. Average interest-bearing deposits at banks decreased $3.5 billion as liquidity was deployed to originate loans and purchase investment securities. The growth in average loans reflected higher average balances of commercial and industrial loans of $2.7 billion, including growth in loans to the financial and insurance industry, an increase in average residential real estate loan balances of $1.6 billion and higher average consumer loan balances of $2.0 billion, reflecting growth in average balances of recreational finance, automobile loans and home equity loans and lines of credit. Those increases were partially offset by a $2.8 billion decline in average commercial real estate loan balances, reflecting payoffs.
Average Interest-bearing Liabilities
(Dollars in millions)
1Q26
4Q25
Change 1Q26 vs.4Q25
1Q25
Change 1Q26 vs.1Q25
Interest-bearing deposits
Savings and interest-checking deposits
$ 106,593
$ 107,287
-1 %
$ 101,564
5 %
Time deposits
13,128
13,586
-3
14,220
-8
Total interest-bearing deposits
119,721
120,873
-1
115,784
3
Short-term borrowings
5,695
2,064
176
2,869
98
Long-term borrowings
11,064
12,555
-12
11,285
-2
Total interest-bearing liabilities
$ 136,480
$ 135,492
1
$ 129,938
5
Average interest-bearing liabilities in the recent quarter rose $988 million from the fourth quarter of 2025 reflecting an increase in short-term borrowings from the FHLB of New York, partially offset by a decline in average interest-bearing deposits and long-term borrowings, including maturities of senior notes.
Average interest-bearing liabilities increased $6.5 billion from the first quarter of 2025, as growth in average savings and interest-checking deposits of $5.0 billion and higher average short-term borrowings from the FHLB of New York were partially offset by a $1.1 billion decline in average time deposits due to maturities.
Provision for Credit Losses/Asset Quality
(Dollars in millions)
1Q26
4Q25
Change
1Q26 vs. 4Q25
1Q25
Change
1Q26 vs. 1Q25
At end of quarter
Nonaccrual loans
$ 1,240
$ 1,252
-1 %
$ 1,540
-19 %
Real estate and other foreclosed assets
27
35
-23
34
-22
Total nonperforming assets
1,267
1,287
-2
1,574
-20
Accruing loans past due 90 days or more (1)
646
561
15
384
68
Nonaccrual loans as % of loans outstanding
.89 %
.90 %
1.14 %
Allowance for loan losses
$ 2,136
$ 2,116
1
$ 2,200
-3
Allowance for loan losses as % of loans outstanding
1.53 %
1.53 %
1.63 %
Reserve for unfunded credit commitments
$ 95
$ 80
19
$ 60
58
For the period
Provision for loan losses
$ 125
$ 140
-11
$ 130
-4
Provision for unfunded credit commitments
15
(15)
—
—
—
Total provision for credit losses
140
125
12
130
8
Net charge-offs
105
185
-44
114
-8
Net charge-offs as % of average loans (annualized)
.31 %
.54 %
.34 %
__________________
(1)
Predominantly government-guaranteed residential real estate loans.
The provision for credit losses was $140 million in the first quarter of 2026 as compared with $125 million in the immediately preceding quarter and $130 million in the first quarter of 2025. The allowance for loan losses as a percent of loans outstanding was 1.53% at each of March 31, 2026 and December 31, 2025, improved from 1.63% at March 31, 2025. The 10 basis-point improvement from March 31, 2025 reflects lower levels of criticized loans.
Nonaccrual loans were $1.2 billion and $1.3 billion at March 31, 2026 and December 31, 2025, respectively, compared with $1.5 billion at March 31, 2025. The lower level of nonaccrual loans at March 31, 2026 and December 31, 2025 as compared with March 31, 2025 reflects decreases in commercial and industrial, commercial real estate and consumer nonaccrual loans.
Noninterest Income
(Dollars in millions)
1Q26
4Q25
Change 1Q26 vs. 4Q25
1Q25
Change 1Q26 vs. 1Q25
Mortgage banking revenues
$ 127
$ 155
-18 %
$ 118
8 %
Service charges on deposit accounts
139
140
-1
133
5
Trust income
183
184
-1
177
3
Brokerage services income
35
34
3
32
9
Trading account and other non-hedging derivative gains
14
19
-26
9
43
Gain (loss) on bank investment securities
4
1
238
—
—
Other revenues from operations
187
163
14
142
31
Total
$ 689
$ 696
-1
$ 611
13
Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value with changes in fair value reflected in mortgage banking revenues. As a result, amortization associated with residential mortgage loan servicing right assets previously recognized in other costs of operations before 2026 is no longer recorded. Instead beginning in 2026, fair value changes in residential mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in mortgage banking revenues. On December 31, 2025, the Company began economically hedging the risk of fair value changes in these assets through the use of various interest rate derivative contracts, for which changes in fair value are also reflected in mortgage banking revenues.
Noninterest income in the first quarter of 2026 decreased $7 million, or 1%, from 2025's fourth quarter.
Mortgage banking revenues declined $28 million reflecting the impact of the Company's fair value accounting election described above that reduced residential mortgage banking revenues and lower gains on commercial mortgage loans originated for sale.
Trading account and other non-hedging derivative gains decreased $5 million reflecting a decrease in revenues from interest rate swap transactions with commercial customers.
Other revenues from operations increased $24 million reflecting a $33 million distribution from M&T's investment in BLG in the recent quarter, partially offset by lower merchant discount and credit card fees.
Noninterest income rose $78 million, or 13%, as compared with the first quarter of 2025.
Mortgage banking revenues increased $9 million reflecting a rise in residential mortgage loan servicing income, partially offset by the impact of the Company's accounting election in 2026 described above.
Service charges on deposit accounts increased $6 million reflecting higher commercial service charges.
Trust income rose $6 million reflecting higher revenues from the Company's global capital markets and wealth advisory services businesses.
Trading account and other non-hedging derivative gains increased $5 million reflecting higher revenues from interest rate swap transactions with commercial customers.
Other revenues from operations increased $45 million reflecting a $33 million distribution from M&T's investment in BLG and higher letter of credit and other credit-related fees each in the recent quarter.
Noninterest Expense
(Dollars in millions)
1Q26
4Q25
Change 1Q26 vs. 4Q25
1Q25
Change 1Q26 vs. 1Q25
Salaries and employee benefits
$ 914
$ 809
13 %
$ 887
3 %
Equipment and net occupancy
133
134
—
132
—
Outside data processing and software
144
146
-2
136
5
Professional and other services
93
105
-11
84
11
FDIC assessments
23
(8)
—
23
—
Advertising and marketing
21
32
-35
22
-6
Amortization of core deposit and other intangible assets
9
10
-1
13
-27
Other costs of operations
101
151
-34
118
-15
Total
$ 1,438
$ 1,379
4
$ 1,415
2
Noninterest expense rose $59 million, or 4%, from the fourth quarter of 2025.
Salaries and employee benefits expense increased $105 million reflecting $115 million of seasonally higher stock-based compensation, payroll-related taxes and other employee benefits expenses and the impact of annual merit increases, partially offset by two less working days and lower employee staffing levels in the first quarter of 2026.
Professional and other services expense declined $12 million reflecting lower legal and review costs.
Higher FDIC assessments reflect a reduction of estimated special assessment expense of $29 million in the fourth quarter of 2025.
Advertising and marketing expense declined $11 million reflecting the seasonality of advertising campaigns.
Other costs of operations decreased $50 million reflecting a contribution to The M&T Charitable Foundation of $30 million and the amortization associated with residential mortgage loan servicing right assets each in the fourth quarter of 2025.
Noninterest expense increased $23 million, or 2%, from the first quarter of 2025.
Salaries and employee benefits expense increased $27 million reflecting higher salaries expense from annual merit and other increases and a rise in stock-based incentive compensation.
Outside data processing and software costs rose $8 million reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems.
Professional and other services expense increased $9 million reflecting higher legal and review costs.
Other costs of operations decreased $17 million reflecting the amortization associated with residential mortgage loan servicing right assets in the first quarter of 2025, partially offset by higher expense associated with the Company's supplemental executive retirement savings plan in the recent quarter.
Income Taxes
The Company's effective income tax rate was 23.0% in the first quarter of 2026, compared with 21.8% and 23.2% in the fourth and first quarters of 2025, respectively. The lower effective income tax rate in 2025's final quarter reflects a discrete income tax benefit of $8 million claimed on prior year tax returns.
Capital and Liquidity
1Q26
4Q25
1Q25
CET1
10.33 %
(1)
10.84 %
11.50 %
Tier 1 capital
11.81
(1)
12.59
13.04
Total capital
13.61
