M&T Bank Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 15 July 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS rose year on year: Net income was $818 million against $716 million a year earlier. Net operating income was $823 million and diluted net operating EPS was $5.35. Source
• Average loans grew $3.0 billion: Average loans rose $3.0 billion from the first quarter. Commercial and industrial lending supplied $2.3 billion, and every loan category grew. Source
• Net interest income rose on extra day: Taxable-equivalent net interest income rose $41 million from the first quarter, reflecting an additional day and growth in average earning assets. Source
• Allowance ratio improved on fewer criticized loans: The allowance for loan losses fell to 1.52% of loans from 1.61% a year earlier. Management attributed the improvement to lower levels of criticized loans. Source
• Noninterest income rose 8%: Noninterest income rose 8% from the first quarter, with growth in trust income, swap-related trading gains and other revenues. Mortgage banking revenues were flat. Source
• Expenses fell on seasonal pay: Noninterest expense fell 6% from the first quarter, as seasonal first-quarter pay, benefits, payroll taxes and stock compensation did not recur. Source
• Buybacks fell to $465 million: Share repurchases cost $465 million, against $1.25 billion in the first quarter and $1.08 billion a year earlier, for 2.1 million shares. Source
• Capital ratios above requirements: Total risk-weighted assets were estimated at $167.9 billion, and the company said its capital ratios remained well above regulatory minimums. Source

“M&T generated record earnings per share in the second quarter, reflecting strong contributions from our commercial, retail and institutional services and wealth management businesses.”

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

What changed from last quarter

• New: After a new general ledger platform was implemented in the second quarter, the company modified how it calculates annualized taxable-equivalent rates and certain average deposit balances. Prior amounts were conformed. Source

Earnings and growth drivers

• Net income and EPS rose year on year: Net income was $818 million against $716 million a year earlier. Net operating income was $823 million and diluted net operating EPS was $5.35. Source
• Net income up from first quarter: Net income rose from $664 million in the first quarter, with higher net interest income and fee income and lower noninterest expense. Source
• Returns on common equity rose: Annualized return on average common shareholders' equity was 12.30%, compared with 9.67% in the first quarter and 10.39% a year earlier. Source
• Effective tax rate was 23.1%: The effective income tax rate was 23.1%, compared with 23.0% in the first quarter and 23.4% in the second quarter of 2025. Source

Loan growth and mix

• Average loans grew $3.0 billion: Average loans rose $3.0 billion from the first quarter. Commercial and industrial lending supplied $2.3 billion, and every loan category grew. Source
• Commercial real estate rose at quarter-end: Commercial real estate loans rose $1.1 billion between March 31 and June 30, 2026, a quarter-end increase. Source
• Residential and consumer loans grew: Average residential real estate loans rose $269 million and average consumer loans rose $413 million from the first quarter. Source

“These results reflect the enduring strength of our franchise and the dedication of our employees to making a meaningful difference in the lives of our customers and communities.”

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

Net interest income and funding

• Net interest income rose on extra day: Taxable-equivalent net interest income rose $41 million from the first quarter, reflecting an additional day and growth in average earning assets. Source
• Year-on-year net interest income up: Taxable-equivalent net interest income was up $82 million, or 5%, from a year earlier, on average loan and securities growth and favorable repricing including swaps. Source
• Borrowings funded loan growth: Average interest-bearing liabilities rose $4.0 billion, on higher average FHLB of New York short-term borrowings and senior note and securitization issuance. Source
• Time deposits rose; savings eased: Average time deposits rose 6% from the first quarter, while average savings and interest-checking deposits fell 1%. Total interest-bearing deposits were flat. Source

Asset quality and credit

• Allowance ratio improved on fewer criticized loans: The allowance for loan losses fell to 1.52% of loans from 1.61% a year earlier. Management attributed the improvement to lower levels of criticized loans. Source
• Nonaccrual loans down year on year: Nonaccrual loans were $1.2 billion at June 30, 2026, unchanged from March 31 and down from $1.6 billion a year earlier, on lower commercial and commercial real estate balances. Source
• Nonaccrual share of loans fell: Nonaccrual loans were 0.84% of total loans, against 0.89% in the first quarter and 1.16% a year earlier. Source

Fee income and BLG

• Noninterest income rose 8%: Noninterest income rose 8% from the first quarter, with growth in trust income, swap-related trading gains and other revenues. Mortgage banking revenues were flat. Source
• BLG distribution lifted other revenue: Other revenues from operations rose on a $47 million BLG distribution, compared with $33 million in the first quarter, plus higher merchant and card fees. Source
• Trust income grew with institutional services: Trust income rose $14 million from the first quarter, including seasonal tax service fees, and rose $15 million from a year earlier. Source
• Mortgage servicing fair value election: Residential servicing rights have been measured at fair value since January 1, 2026, so their changes run through mortgage banking revenues, which were $127 million. Source

Expenses and staffing

• Expenses fell on seasonal pay: Noninterest expense fell 6% from the first quarter, as seasonal first-quarter pay, benefits, payroll taxes and stock compensation did not recur. Source
• Salaries fell on lower staffing: Salaries and benefits fell $88 million from the first quarter on lower average staffing, partly offset by merit increases and an extra working day. Source
• Technology and cybersecurity spending rose: Outside data processing and software costs rose $10 million from the first quarter, for technology infrastructure, cybersecurity and recordkeeping systems. Source
• Expenses up slightly year on year: Noninterest expense rose $13 million from a year earlier, as salaries rose on merit and incentive pay, partly offset by lower staffing. Source
• Headcount fell year on year: Full-time equivalent employees were 21,662 at June 30, 2026, down from 22,590 a year earlier and 21,866 at March 31, 2026. Source
• Branch network shrank: Full-service domestic banking offices stood at 911, down from 941 a year earlier, after thirteen branches were redesignated as limited service in the first quarter. Source

Capital and shareholder returns

• Buybacks fell to $465 million: Share repurchases cost $465 million, against $1.25 billion in the first quarter and $1.08 billion a year earlier, for 2.1 million shares. Source
• Capital ratios above requirements: Total risk-weighted assets were estimated at $167.9 billion, and the company said its capital ratios remained well above regulatory minimums. Source
• Tangible equity ratio declined: Tangible common equity to tangible assets fell 19 basis points from March and 60 basis points from a year earlier, reflecting loan growth and buybacks. Source
• Dividends paid and stress buffer: Common and preferred dividends totaled $220 million and $35 million, and the stress capital buffer is 2.7%. Source
• Estimated liquidity coverage ratio: The estimated liquidity coverage ratio was 106% at June 30, 2026. The company is not subject to LCR requirements but reports exceeding the reduced Category III standard. Source
• Share price up 23% year on year: The period-end common stock price was $238.01, up from $193.99 a year earlier and from $206.72 at March 31, 2026. Source

Figures management reported

Risks management discussed

• Financial: Accruing loans past due 90 days or more were $603 million, up 22% from a year earlier, mostly government-guaranteed residential loans. Source
• Financial: Capital ratios for June 30, 2026 are estimated rather than final. Source
• Demand: Commercial real estate balances fell year on year as loans were paid off, offsetting part of the growth in other loan categories. Source

Earlier plans management reported on

• Met: The first-quarter release described the core general ledger conversion as completed successfully.
• Met: The first-quarter release said repurchases of $1.25 billion were made in accordance with the capital plan.

Other quarters

• Q1 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.