M&T Bank Corp.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 15 April 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Earnings rose from a year earlier: Net income was $664 million, up from $584 million a year earlier and down from $759 million in the fourth quarter. Diluted EPS was $4.13, against $3.32 a year earlier and $4.67 in the fourth quarter. Source
• Net interest margin widened slightly: Net interest margin rose 2 basis points from the fourth quarter. Funding costs fell by more than the yield on earning assets declined, and taxable-equivalent net interest income was $27 million lower than the fourth quarter. Source
• Provision rose from first-quarter 2025: Provision for credit losses was $140 million, up from $125 million in the fourth quarter. Within it, the loan provision was $125 million and the unfunded commitments provision was $15 million. Source
• Net charge-offs fell from fourth quarter: Net charge-offs were $105 million, or 0.31% of average loans annualized, compared with $185 million, or 0.54%, in the fourth quarter and $114 million a year earlier. Source
• Share repurchases rose in quarter: 5.5 million common shares were repurchased under the capital plan during the quarter. Source
• CET1 ratio declined from year-end: The estimated CET1 ratio was 10.33% at March 31, 2026, against 10.84% at December 31, 2025 and 11.50% a year earlier. Total risk-weighted assets were estimated at $164.2 billion. Source

“return capital to its shareholders in the recent quarter while investing in its businesses and expanding its operational capabilities”

Daryl N. Bible, M&T's Chief Financial Officer

What changed from last quarter

• New: From January 1, 2026, residential mortgage servicing rights are measured at fair value, with changes recorded in mortgage banking revenues. Source
• New: Thirteen domestic branches formerly classified as full service were designated limited service in regulatory filings. Source

Earnings and net interest income

• Earnings rose from a year earlier: Net income was $664 million, up from $584 million a year earlier and down from $759 million in the fourth quarter. Diluted EPS was $4.13, against $3.32 a year earlier and $4.67 in the fourth quarter. Source
• Net interest margin widened slightly: Net interest margin rose 2 basis points from the fourth quarter. Funding costs fell by more than the yield on earning assets declined, and taxable-equivalent net interest income was $27 million lower than the fourth quarter. Source
• Net interest income up year over year: Taxable-equivalent net interest income was $1,763 million, up $56 million from a year earlier, reflecting loan and securities growth and repricing, including swap agreements. The fourth-quarter comparison had two more calendar days. Source
• Noninterest income little changed: Noninterest income was $689 million, down $7 million from the fourth quarter and up $78 million from the first quarter of 2025. Source
• Net operating EPS rose year over year: Diluted net operating EPS was $4.18, against $4.72 in the fourth quarter and $3.38 a year earlier. Net operating results exclude intangible amortization and merger-related expenses. Source

Loans, deposits and liquidity

• Commercial and industrial loans grew: Average commercial and industrial loans were $63.8 billion, up $1.5 billion from the fourth quarter, with higher balances of loans to the financial and insurance industry. Source
• Commercial real estate balances declined: Average commercial real estate loans fell $2.8 billion from a year earlier on payoffs, and $605 million from the fourth quarter. Source
• Consumer loans rose on recreational finance: Average consumer loans were $26.3 billion, up $2.0 billion from a year earlier, though $171 million lower than the fourth quarter. Source
• Savings deposits edged lower: Average savings and interest-checking deposits were $106.6 billion, down 1% from the fourth quarter and up 5% from a year earlier. Average time deposits fell 8% from a year earlier as they matured. Source
• Deposits at banks drawn down: Average interest-bearing deposits at banks fell $3.5 billion from a year earlier as liquidity moved into loans and investment securities. Source
• Liquidity coverage ratio estimated above minimums: M&T is not subject to the liquidity coverage ratio requirements, but estimates its ratio exceeds the minimums that would apply to a Category III institution. Source

“I am pleased to report the successful conversion of our core general ledger platform earlier this week.”

Daryl N. Bible, M&T's Chief Financial Officer

Fee income and mortgage servicing

• Mortgage banking revenues rose yearly: Mortgage banking revenues were $127 million, up $9 million from a year earlier on higher residential servicing income, and down $28 million from the fourth quarter. Source
• Other revenues rose on BLG distribution: Other revenues from operations were $187 million, up $24 million from the fourth quarter, with a $33 million distribution from the BLG investment, partly offset by lower merchant and credit card fees. Source
• Trust income rose on capital markets: Trust income was $183 million, up $6 million from a year earlier, reflecting higher global capital markets and wealth advisory revenues. Source
• Service charges rose on commercial fees: Service charges on deposit accounts were $139 million, up $6 million from a year earlier, from higher commercial service charges. Source

Noninterest expense and staffing

• Seasonal compensation lifted salaries: Salaries and employee benefits were $914 million, up $105 million from the fourth quarter, with merit increases partly offset by two fewer working days and lower staffing. Source
• Technology and software costs rose: Outside data processing and software was $144 million, up $8 million from a year earlier, reflecting technology, cybersecurity and recordkeeping system enhancements. Source
• Legal and review costs lower: Professional and other services were $93 million, down $12 million from the fourth quarter, but up $9 million from a year earlier on higher legal and review costs. Source
• Total expense rose four percent: Total noninterest expense was $1,438 million. The fourth quarter included a $30 million charitable foundation contribution and a $29 million reduction in estimated special FDIC assessments. Source
• Full-time staff declined: Full-time equivalent employees totaled 21,866 at March 31, 2026, down from 22,080 at year-end and 22,291 a year earlier. Source
• Full-service branches fell to 930: Full-service domestic banking offices were 930 at March 31, 2026, against 942 at year-end and 955 a year earlier. Source

Margins, funding and deposit costs

• Deposit costs declined: Cost of interest-bearing deposits was 1.96%, down from 2.17% in the fourth quarter and 2.37% a year earlier. Cost of interest-bearing liabilities was 2.33%. Source
• Earning asset yield declined: Yield on average earning assets was 5.36%, down from 5.46% in the fourth quarter, while the net interest spread widened to 3.03% from 2.95%. Source
• Efficiency ratio rose from fourth quarter: Efficiency ratio was 58.3%, compared with 55.1% in the fourth quarter and 60.5% a year earlier. The efficiency ratio is a non-GAAP measure reconciled in the release tables. Source
• Noninterest-bearing deposits fell: Period-end noninterest-bearing deposits were $45.9 billion, down 6% from a year earlier. Contribution of interest-free funds to net interest margin was .68 against .84. Source

Credit quality and reserves

• Provision rose from first-quarter 2025: Provision for credit losses was $140 million, up from $125 million in the fourth quarter. Within it, the loan provision was $125 million and the unfunded commitments provision was $15 million. Source
• Net charge-offs fell from fourth quarter: Net charge-offs were $105 million, or 0.31% of average loans annualized, compared with $185 million, or 0.54%, in the fourth quarter and $114 million a year earlier. Source
• Nonaccrual loans down year over year: Nonaccrual loans were $1.24 billion at March 31, 2026, 19% lower than a year earlier, and 0.89% of total loans, compared with 1.14% a year earlier. Source
• Allowance ratio unchanged from year-end: The allowance for loan losses was $2.14 billion, or 1.53% of total loans, unchanged from December 31, 2025 and down from 1.63% a year earlier. Source

Capital and shareholder returns

• Share repurchases rose in quarter: 5.5 million common shares were repurchased under the capital plan during the quarter. Source
• CET1 ratio declined from year-end: The estimated CET1 ratio was 10.33% at March 31, 2026, against 10.84% at December 31, 2025 and 11.50% a year earlier. Total risk-weighted assets were estimated at $164.2 billion. Source
• Servicing election added to capital: The servicing election added $263 million of capitalized servicing assets and $197 million after tax to retained earnings at January 1, 2026. Source
• Dividends declared for the quarter: Common and preferred dividends declared were $224 million and $43 million for the quarter ended March 31, 2026. Source
• Tangible equity ratio fell: Tangible common equity to tangible assets decreased from December 31, 2025, reflecting share repurchases and loan growth in the quarter. Source
• Common shares outstanding fell: Period-end common shares outstanding were 146,917 thousand, down from 162,552 thousand a year earlier. Average diluted shares were 150,109 thousand. Source

Figures management reported

Risks management discussed

• Financial: Accruing loans 90 days or more past due rose to $646 million, predominantly government-guaranteed residential real estate loans. Source
• Financial: Short-term FHLB of New York borrowings increased average interest-bearing liabilities by $988 million, partly offset by lower deposits and long-term borrowings. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.