M&T Bank Corporation, based in Buffalo, New York, announced impressive financial results for the second quarter of 2025, reporting a net income of $716 million, equivalent to $4.24 in diluted earnings per common share. The results reflect a solid performance, driven by increases in net interest income and noninterest income, as well as effective cost management strategies.
The company’s taxable-equivalent net interest income rose by $15 million compared to the first quarter of 2025. This increase was attributed to an additional day of earnings, favorable asset repricing, and a lower negative impact from interest rate swap agreements used for hedging. However, this was partially offset by a $20 million reduction in taxable-equivalent interest income due to the alignment of amortization periods for certain municipal bonds acquired from People’s United Financial, Inc.
Average loans during the quarter showed growth, particularly in consumer and residential real estate loans, despite a decline in commercial real estate loan balances. Additionally, average deposits increased, indicating stronger customer engagement and confidence, particularly in savings and interest-checking accounts.
The rise in noninterest income was notable, reflecting a $12 million increase in residential mortgage banking revenues and a $5 million increase in trust income. The company also reported gains on the sale of an out-of-footprint loan portfolio amounting to $15 million and a $10 million gain from divesting a subsidiary that specialized in institutional services.
M&T Bank’s noninterest expense decreased by $79 million, or 6%, from the previous quarter. This decline was primarily due to lower salaries and employee benefits, which typically see seasonal fluctuations. The allowance for loan losses as a percentage of total loans decreased to 1.61%, indicating improved asset quality.
On the capital front, M&T repurchased 6,073,957 shares of its common stock at a total cost of $1.1 billion. This marked a significant increase in share repurchases compared to the 3,415,303 shares repurchased in the first quarter for $662 million. Following these share repurchases, M&T’s Common Equity Tier 1 (CET1) capital ratio stood at an estimated 10.98% as of June 30, 2025, down from 11.50% in the prior quarter.
Daryl N. Bible, M&T’s Chief Financial Officer, expressed satisfaction with the bank’s performance. “M&T’s consistent profitability has supported a significant return of capital to shareholders while maintaining resiliency entering the second half of the year,” he stated. He emphasized the bank’s commitment to prudent risk management and highlighted the community engagement efforts of M&T employees.
Looking ahead, M&T Bank continues to focus on strong financial performance while adapting to changing market conditions. The company will hold a conference call today at 11:00 a.m. Eastern Time to discuss these results further. Investors can participate by dialing (800) 347-7315, with international participants encouraged to use the appropriate codes.
M&T Bank remains a key player in the financial services sector, providing a range of banking products and services through its extensive network across the eastern United States. For more information, visit their official website at www.mtb.com.
