01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
M&T Bank Corporation reported net income of $664 milliona for the first quarter of 2026, up from $584 million in the first quarter of 2025, and diluted earnings per common share of $4.13 compared with $3.32 a year earlier.
Net interest income rose to $1.75 billionb from $1.70 billion, with the net interest margin at 3.71% versus 3.66%. Total other income was $689 million, including a $33 million distribution from M&T's investment in BLG. Total other expense was $1.44 billion, up from $1.42 billion.
Compared with the fourth quarter of 2025, net income declined from $759 millionc, reflecting seasonal salary costs of $115 million and a $15 million increase in the provision for credit losses to $140 million. The balance sheet grew modestly, with total assets of $214.74 billion at March 31, 2026, versus $213.51 billion at year-end 2025. Total shareholders' equity fell to $27.97 billion from $29.18 billion, largely due to $1.25 billion of common share repurchases and the $400 million redemption of Series G preferred stock.
Short-term borrowings increased to $7.85 billiond from $2.15 billion. Nonaccrual loans were $1.24 billion, or 0.89% of total loans, and the allowance for loan losses stood at $2.14 billion, or 1.53% of loans. Regulatory CET1 capital ratio for the consolidated company was 10.33%.
The filing also discloses a change in accounting for residential mortgage servicing rights, which are now measured at fair value beginning January 1, 2026, adding $197 million after tax to retained earnings. Management disclosed ongoing litigation involving Wilmington Trust, N.A. related to Tricolor Holdings, LLC, for which no loss estimate can yet be made, and a new $5.0 billion share repurchase authorization was approved on March 30, 2026.
02—Key points
Key Highlights
- Net income of $664 million in Q1 2026, up 14% from $584 million a year earlier; diluted EPS of $4.13 versus $3.32.
- Net interest margin widened to 3.71% from 3.66% a year earlier, and net interest income rose to $1.75 billion from $1.70 billion.
- Other income of $689 million rose from $611 million, including a $33 million BLG distribution and higher other revenues from operations.
- Common share repurchases totaled $1.25 billion in the quarter; a new $5.0 billion repurchase authorization was approved March 30, 2026.
- Nonaccrual loans fell to $1.24 billion (0.89% of total loans) from $1.54 billion a year earlier; allowance for loan losses was $2.14 billion.
- Accounting change: residential mortgage servicing rights are now carried at fair value, adding $197 million after tax to retained earnings.
- Wilmington Trust, N.A. faces a civil complaint related to Tricolor Holdings, LLC; the company says it cannot estimate potential liability at this time.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $418.00M$397.00M | +5.3% |
| Net Income | $664.00M$584.00M | +13.7% |
| EPS (Basic) | $4.16$3.33 | +24.9% |
| EPS (Diluted) | $4.13$3.32 | +24.4% |
| Shares Outstanding (Basic) | 149.22M164.21M | −9.1% |
| Shares Outstanding (Diluted) | 150.11M165.05M | −9.1% |
05—Questions
Frequently Asked Questions
How did M&T's profitability change in the first quarter of 2026?
Net income was $664 million, up from $584 million in the first quarter of 2025, and diluted EPS was $4.13 versus $3.32. Compared with the fourth quarter of 2025, net income fell from $759 million, reflecting seasonally higher salaries and employee benefits of $115 million and a larger provision for credit losses of $140 million.
What drove the change in the company's net interest income?
Taxable-equivalent net interest income increased $56 million year over year, reflecting growth in average loans and investment securities and favorable repricing. The net interest margin rose 5 basis points to 3.71%, as reductions in deposit and borrowing costs outpaced declines in asset yields.
How did M&T's capital position and shareholder returns change?
Total shareholders' equity declined to $27.97 billion from $29.18 billion at year-end 2025, driven by $1.25 billion of common share repurchases and the $400 million redemption of Series G preferred stock. The consolidated CET1 capital ratio was 10.33% at March 31, 2026, and the company's Board authorized a new $5.0 billion repurchase program.
What is the status of credit quality?
Nonaccrual loans were $1.24 billion, or 0.89% of total loans, down from $1.54 billion at March 31, 2025. The allowance for loan losses was $2.14 billion, or 1.53% of total loans. Net charge-offs were $105 million, or 0.31% of average loans, in the quarter.
Are there material legal matters investors should monitor?
Wilmington Trust, N.A., a subsidiary, faces a civil complaint filed January 12, 2026 by certain note holders related to Tricolor Holdings, LLC asset-backed securitizations. The company states it intends to vigorously defend the action, believes it may incur losses, and cannot currently estimate the potential liability, which it does not currently expect to be material to its financial position.
06—Continue