M&T Bank reports Q2 2026 net income of $818M ($5.32/share), up 14% YoY

M&T Bank disclosed its second quarter 2026 financial results through a press release. The 8-K itself does not contain the actual earnings figures — those are in the attached Exhibit 99.1, which is not included in this filing body. This is a standard earnings announcement filing under Item 2.02.

M&T Bank reported second quarter 2026 net income of $818 million, or $5.32 diluted earnings per common share, representing a 14% increase from $716 million in the year-earlier quarter and a 23% increase from $664 million in the first quarter of 2026. The improvement reflects strong contributions from commercial, retail, institutional services, and wealth management businesses, with taxable-equivalent net interest income rising to $1,804 million and noninterest income increasing to $740 million.

Average loan balances grew $3.0 billion in the second quarter, with broad-based growth across all categories. Commercial and industrial loans increased $2.3 billion, commercial real estate loans rose $1.1 billion from the prior quarter-end, and residential real estate and consumer loans also expanded. Total loans outstanding reached $143.2 billion at June 30, 2026, up 5% from the year-earlier period.

Nonaccrual loans declined to $1.2 billion at June 30, 2026, down 23% from $1.6 billion a year earlier, reflecting decreases in commercial and industrial and commercial real estate nonaccrual loans. The allowance for loan losses as a percent of total loans improved to 1.52% from 1.61% a year earlier, reflecting lower levels of criticized loans. Net charge-offs were 0.23% of average loans (annualized), down from 0.32% in the year-earlier quarter.

M&T repurchased 2.1 million shares for $465 million during the second quarter of 2026. The estimated CET1 capital ratio declined to 10.19% from 10.33% in the prior quarter and 10.99% a year earlier, reflecting loan growth and share repurchase activity. Cash dividends declared on common stock totaled $220 million for the quarter. The tangible common equity to tangible asset ratio decreased 19 basis points from the prior quarter to 8.07%.

M&T received a $47 million distribution from its investment in Bayview Lending Group LLC (BLG) in the second quarter of 2026, up from $33 million in the first quarter. This contributed to an $8 million increase in total noninterest income compared to the prior quarter and a $22 million increase in other revenues from operations compared to the year-earlier quarter.

M&T Bank reported second quarter 2026 net income of $818 million and diluted earnings per share of $5.32, representing a 29% increase from the prior quarter and a 25% increase year-over-year. Return on assets improved to 1.51% (up 25 basis points QoQ and 14 basis points YoY), while return on common equity reached 12.30% (up 263 basis points QoQ and 191 basis points YoY). The company characterized these as record earnings per share for the quarter.

Taxable-equivalent net interest income increased $41 million or 2% quarter-over-quarter to $1.804 billion, driven by higher nonaccrual interest, one additional day in the quarter, and higher average earning assets. Net interest margin remained flat at 3.70% as higher earning asset yields were offset by higher funding costs and lower contribution from interest-free funds. Average earning assets grew 1% QoQ to $195.2 billion.

Average loans grew $3.0 billion quarter-over-quarter to $141.4 billion, with commercial and industrial loans up 4% ($2.3 billion), consumer loans up 2% ($413 million), residential real estate up 1% ($269 million), and commercial real estate up modestly in average balances but showing 5% growth ($1.1 billion) on a period-end basis. The company's 2026 outlook calls for average loans of $141 to $143 billion, reflecting continued commercial loan momentum and inflecting CRE balances.

Credit quality improved significantly with net charge-offs declining to $80 million or 0.23% of average loans (down from 0.31% in Q1 2026 and 0.32% in Q2 2025). Nonaccrual loans decreased to $1.208 billion or 0.84% of total loans (down from 0.89% prior quarter). Criticized commercial and industrial and commercial real estate loans fell $700 million quarter-over-quarter, with 94% of criticized accrual loans remaining current. The company's 2026 outlook projects net charge-offs of approximately 37 basis points of average loans.

M&T repurchased $465 million of common shares during the second quarter of 2026 (including share repurchase excise tax). The CET1 capital ratio decreased to an estimated 10.19% at quarter-end (down 14 basis points QoQ) but remains within the company's 10.0% to 10.5% target range. Tangible book value per share increased 1% quarter-over-quarter and 4% year-over-year to $117.41. The company noted that under the proposed Basel III June 2026 rules, the CET1 ratio would have been approximately 90 basis points higher under the standardized approach.