M&T Bank Earnings Bolstered by Interest Income

M&T Bank Corporation (NYSE: MTB) reported fourth-quarter and full-year 2025 results on Jan. 16, 2026, as earnings were supported by higher interest income and mortgage-banking gains. Management also set 2026 guidance for net interest income (NII).

Quarterly Results, Balance Sheet, and Credit Metrics

M&T reported fourth-quarter net income of $759 million and diluted GAAP earnings per share (EPS) of $4.67, down from $792 million and $4.82 in the prior quarter. Net operating income was $767 million, with diluted net operating EPS of $4.72, also lower than the previous quarter. Management noted a $30 million charitable contribution reduced EPS by $0.15, while a $29 million reduction in the FDIC special assessment added $0.14.

Taxable-equivalent net interest income rose 1% to $1.79 billion, driven by loan growth and repricing. The net interest margin increased by one basis point to 3.69%. Average loans grew $2.4 billion to $165.1 billion, with commercial and industrial loans up $0.5 billion to $62.2 billion. Residential mortgage balances rose 2% to $24.8 billion, consumer loans increased 1% to $26.5 billion, and commercial real estate declined 1% to $24.1 billion. Average interest-bearing deposits increased $2.2 billion to $120.9 billion, while noninterest-bearing deposits edged up to $44.2 billion.

Noninterest income fell $56 million to $696 million, despite mortgage-banking revenue rising to $155 million from $147 million and trust income increasing $3 million to $184 million. Noninterest expense rose $16 million to $1.38 billion, pushing the efficiency ratio to 55.1% from 53.6%.

Credit costs increased as net charge-offs reached $185 million, or 54 basis points of average loans, up from 42 basis points in the prior quarter. The quarter included three $106 million credits. The provision for credit losses was $125 million. Nonaccrual loans declined 17% to $1.3 billion, representing 90 basis points of loans. The allowance for credit losses stood at 1.53% of loans.

Estimated common-equity Tier 1 capital (CET1) was 10.84% at Dec. 31, 2025, down 15 basis points from the prior quarter. Estimated liquidity coverage ratio (LCR) was 109%, exceeding minimums for a Category III institution. The quarterly dividend rose 11%, and share repurchases equaled 9% of shares outstanding. Tangible book value per share increased 7% year over year. Fee income for the full year reached $2.7 billion, up 13% and accounting for 28% of revenue.

Full-Year Results and 2026 Guidance

For full-year 2025, M&T reported net income of $2.85 billion, up from $2.59 billion in 2024. Diluted EPS rose 16% to $17.00 from $14.88, with net operating EPS at $17.20. The results reflected stronger net interest performance and expanded fee income.

Management set 2026 targets including taxable-equivalent net interest income of $7.2 billion to $7.35 billion and average loans of $140 billion to $142 billion, with point-to-point growth across commercial, residential mortgage, and consumer portfolios. Full-year commercial real estate loans are expected below the 2025 average. Average deposits are projected at $165 billion to $167 billion. Noninterest income guidance ranges from $2.675 billion to $2.775 billion, while noninterest expense, including intangible amortization, is forecast at $5.5 billion to $5.6 billion. This outlook indicates management expects continued net interest income and balance-sheet growth, which will influence dividend and share repurchase decisions.