M&T Bank Corporation has announced impressive financial results for the second quarter of 2025, reporting a net income of $716 million or $4.24 of diluted earnings per common share. This performance reflects a steady increase in net interest income and a successful alignment of its asset portfolio.
The bank’s taxable-equivalent net interest income rose by $15 million compared to the first quarter of 2025. Contributing factors included an additional day of earnings, favorable asset repricing, and a reduced negative impact from interest rate swap agreements used for hedging. However, this was partially offset by a $20 million decline in taxable-equivalent interest income due to adjustments in the amortization periods for certain municipal bonds acquired from the purchase of People’s United Financial, Inc.
In terms of loan performance, average loans for the recent quarter showed an increase, notably in consumer and residential real estate segments, although there was a decrease in commercial real estate loans. Additionally, average deposits increased, driven by higher savings and interest-checking deposits. The bank also reported a significant rise in noninterest income, which increased by $72 million, largely fueled by gains in residential mortgage banking revenues and trust income.
Operational Efficiency and Shareholder Returns
M&T Bank’s noninterest expense saw a decline of $79 million from the previous quarter, primarily due to lower salaries and employee benefits expenses. The bank’s allowance for loan losses as a percentage of total loans decreased by 2 basis points to 1.61% as of June 30, 2025, reflecting improved asset quality.
During the quarter, M&T repurchased 6,073,957 shares of its common stock at a total cost of $1.1 billion, compared to 3,415,303 shares for $662 million in the first quarter of 2025. This share repurchase resulted in a decline in the Common Equity Tier 1 (CET1) capital ratio to an estimated 10.98%, down from 11.50% at the end of the first quarter.
Daryl N. Bible, Chief Financial Officer of M&T, expressed satisfaction with the bank’s consistent profitability and the effective return of capital to shareholders. He stated, “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 Prospects and Call to Investors
The bank’s capital ratios remain robust, exceeding regulatory requirements. M&T declared cash dividends totaling $215 million for common stock and $35 million for preferred stock in the quarter. Following the Federal Reserve’s recent supervisory stress tests, M&T’s stress capital buffer is estimated to be 2.7%, effective October 1, 2025.
Investors can engage with M&T’s management during a conference call scheduled for today at 11:00 a.m. Eastern Time. Participants can join by dialing (800) 347-7315 for domestic calls or (785) 424-1755 for international calls. A live webcast will also be available on M&T’s official website.
As M&T Bank continues to navigate a competitive financial landscape, its recent performance highlights its commitment to growth and shareholder value while managing risks effectively. For more details about M&T Bank’s offerings and financials, visit www.mtb.com.