M&T Bank Corp. recently released its 10-Q report. M&T Bank Corp. is a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association, with three operating segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. It provides commercial lending, deposit products, consumer and residential mortgage loans, cash management, trust and fiduciary services, and investment management to retail, commercial, and institutional clients, and is headquartered in Buffalo, New York.
In Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, M&T said first-quarter 2026 net income was $664 million, down 13% from $759 million in the fourth quarter of 2025 but up 14% from $584 million in the first quarter of 2025. Diluted earnings per share were $4.13, compared with $4.67 in the prior quarter and $3.32 a year earlier.
Net interest income on a taxable-equivalent basis was $1.763 billion, down $27 million sequentially and up $56 million year over year. The net interest margin was 3.71%, up from 3.69% in the fourth quarter and 3.66% in the first quarter of 2025. Average total earning assets were $192.594 billion, with average loans of $138.423 billion and average investment securities of $37.845 billion.
Average commercial and industrial loans were $63.804 billion, generating $944 million of taxable-equivalent interest income at a 6.00% yield. Average commercial real estate loans were $23.496 billion at a 6.03% yield, residential real estate loans averaged $24.817 billion at 4.56%, and consumer loans averaged $26.306 billion at 6.48%.
Average interest-bearing deposits were $119.721 billion, with savings and interest-checking deposits at $106.593 billion costing 1.84% and time deposits at $13.128 billion costing 3.01%. Total deposits averaged $164.268 billion, and noninterest-bearing deposits averaged $44.547 billion.
The provision for credit losses was $140 million, up from $125 million in the prior quarter and $130 million a year earlier. M&T said the sequential increase reflected potential negative effects from global conflicts on economic forecasts and a higher provision for unfunded credit commitments, partly offset by lower criticized loans.
Noninterest income was $689 million, down $7 million from the fourth quarter but up $78 million from the first quarter of 2025. The company cited lower mortgage banking revenues and weaker trading account and other non-hedging derivative gains versus the prior quarter, partly offset by a $33 million distribution from its investment in BLG. Compared with a year earlier, higher other revenues from operations, letter of credit and other credit-related fees, mortgage banking revenues, service charges on deposit accounts, and trust income drove the increase.
Noninterest expense was $1.438 billion, up $59 million sequentially and $23 million year over year. Salaries and employee benefits rose, including $115 million of seasonal salaries and employee benefits expense in the quarter. M&T also said outside data processing and software costs and professional and other services expense increased year over year.
The company’s effective income tax rate was 23.0% for the quarter, compared with 21.8% in the fourth quarter of 2025 and 23.2% in the first quarter of 2025.
M&T repurchased 5.5 million shares of common stock during the quarter for $1.25 billion, compared with 2.7 million shares for $507 million in the fourth quarter of 2025 and 3.4 million shares for $662 million in the first quarter of 2025. On March 30, 2026, the board authorized a new $5.0 billion share repurchase program. On February 1, 2026, M&T redeemed all 40,000 outstanding shares of its Series G preferred stock for $400 million.
On a supplemental basis, net operating income was $671 million, diluted net operating earnings per share were $4.18, the annualized return on average tangible assets was 1.33%, and the annualized return on average tangible common equity was 14.51%. The efficiency ratio was 58.3%, and tangible equity per common share was $115.96 at quarter-end. Following these announcements, the company's shares moved 0.41%, and are now trading at a price of $214.96. Check out the company's full 10-Q submission here.
