M&T Bank Corporation

M&T reported second-quarter 2026 diluted GAAP EPS of $5.32, up from $4.13 in the prior quarter, and net income of $818 million versus $664 million last quarter. ROA was 1.51% and ROCE was 12.3%; on an operating basis, EPS was $5.35 and net operating income was $823 million. Taxable-equivalent net interest income was $1.8 billion, up $41 million or 2% sequentially, while net interest margin was 3.70%, unchanged. Average loans increased $3 billion to $141.4 billion, average deposits declined $0.7 billion to $163.5 billion, non-interest income was $740 million, and non-interest expense was $1.35 billion; the efficiency ratio improved to 52.8%. Net charge-offs were $80 million, or 23 bps, and the allowance for loan losses was 1.52%. For the full year, management now expects NII in the lower half of $7.2 billion-$7.35 billion, fee income of $2.8 billion-$2.85 billion, expenses at the high end of $5.5 billion-$5.6 billion, net charge-offs of 37 bps, and CET1 in the lower part of the 10%-10.5% range. Full-year NIM is expected to be in the high 3.60% range, and average loans are forecast at $141 billion-$143 billion.

Daryl Bible emphasized M&T’s purpose-driven model, local-market strategy, and use of technology to scale what he said has always differentiated the bank: relationships, local knowledge, and disciplined execution. He sounded constructive on the economy and on the bank’s positioning, saying M&T is well-positioned for a dynamic environment and remains focused on shareholder returns, dividend growth, and prudent capital stewardship. He also highlighted community and innovation initiatives in Boston and Buffalo as part of the bank’s long-term investment approach.

Bible’s financial commentary centered on broad-based strength in earnings, loans, fees, and credit. He cited record quarterly diluted EPS, the highest quarterly NII since 2023, record fee income excluding prior notable items, and the strongest quarterly loan growth since 2012 excluding acquisitions and PPP. On balance sheet and capital, he noted $53.9 billion of securities and cash at the Fed, a 106% estimated LCR, a CET1 ratio of 10.19%, and $465 million of share repurchases in the quarter. He also framed deposits as improving later in the quarter, with average interest-bearing deposit costs down to 1.95% and a 56% cumulative beta since the 2024 cutting cycle.

Analysts focused on whether loan growth, especially CRE and C&I, would pressure NIM and how M&T would fund growth if deposits lagged. Bible said deposit momentum improved late in the quarter, short-term borrowings are already coming down, and the bank has options including core deposit gathering, securitizations, debt, and FHLB advances, while accepting some margin pressure in exchange for growth. Questions also covered capital, with management saying buybacks will be the “tail on the dog” and will flex around RWA growth to keep CET1 around 10.2%, plus the potential for future risk-transfer activity under Basel III proposals. Additional questions addressed Bayview/sub-servicing, CRE transformation, and credit normalization; management said sub-servicing adds about $35 million of second-half revenue, CRE now includes more originations-and-sell businesses, and criticized loans still have room to decline while non-accruals are likely near a floor.