M&T Bank Corporation, based in Buffalo, New York, announced a robust net income of $716 million for the second quarter of 2025, equating to $4.24 in diluted earnings per common share. This marks a notable performance as the bank continues to navigate the complexities of the financial landscape.
The financial highlights reveal a $15 million increase in taxable-equivalent net interest income compared to the first quarter of 2025. This uptick is attributed to an extra day of earnings, favorable asset repricing, and a reduced negative impact from interest rate swap agreements used for hedging. These gains were slightly offset by a $20 million decline in taxable-equivalent interest income, primarily due to adjustments in the amortization periods for certain municipal bonds acquired from the purchase of People’s United Financial, Inc.
Average loans during the quarter saw an increase, driven by higher consumer and residential real estate loan balances, although there was a slight decline in commercial real estate loans. Additionally, average deposits experienced growth, reflecting a higher balance in savings and interest-checking accounts.
M&T Bank’s noninterest income also saw a significant boost, with a rise in residential mortgage banking revenues and trust income. The bank reported gains of $15 million from the sale of an out-of-footprint loan portfolio and $10 million from a subsidiary specializing in institutional services.
Cost Management and Share Buybacks
The bank’s noninterest expenses decreased, mainly due to lower salaries and employee benefits, a trend attributed to seasonal variations. The allowance for loan losses as a percentage of total loans improved, dropping by 2 basis points to 1.61% by June 30, 2025, reflecting enhanced asset quality.
In a strategic move, M&T repurchased 6,073,957 shares of its common stock during the quarter, at a total expense of $1.1 billion. This is a substantial increase compared to the 3,415,303 shares repurchased for $662 million in the first quarter of the year. Following these share buybacks, the bank’s Common Equity Tier 1 (CET1) capital ratio fell to an estimated 10.98%, a decrease of 52 basis points from 11.50% at the end of March 2025.
Daryl N. Bible, Chief Financial Officer of M&T Bank, expressed confidence in the bank’s performance, stating, “M&T’s consistent profitability has supported a significant return of capital to shareholders while maintaining resiliency entering the second half of the year.”
Future Outlook and Investor Engagement
The provision for credit losses for the second quarter was recorded at $125 million, a decrease from $130 million in the previous quarter and $150 million from the same period in 2024. M&T’s net charge-offs totaled $108 million, down from $114 million in the first quarter of 2025, indicating improved credit management.
Looking forward, M&T Bank remains committed to maintaining strong capital ratios and effective risk management practices. The bank declared cash dividends of $215 million on common stock and $35 million on preferred stock for the quarter ending June 30, 2025. Additionally, M&T’s current stress capital buffer stands at 3.8%, expected to adjust to 2.7% effective October 1, 2025, as per the recent supervisory stress tests conducted by the Federal Reserve.
Investors can tune in to a conference call scheduled for 11:00 a.m. Eastern Time today, providing insights into the bank’s second-quarter financial results. Participants can dial into the call using the provided numbers or join via M&T’s website.
Through strategic management and a focus on customer service, M&T Bank continues to position itself as a strong player in the financial sector, demonstrating resilience and a commitment to stakeholder value.
