How did M&T's first quarter 2025 earnings compare with the prior quarter and the prior year?

Net income was $584 million, or $3.32 per diluted share, versus $681 million ($3.86) in the fourth quarter of 2024 and $531 million ($3.02) in the first quarter of 2024. The fourth quarter included a $23 million Bayview Lending Group distribution and net securities gains that did not recur.

What drove the change in net interest margin?

The net interest margin widened to 3.66% from 3.58% in the fourth quarter, reflecting lower funding costs on interest-bearing deposits and short-term borrowings, partially offset by lower yields on interest-bearing deposits at banks and on loans and leases. Taxable-equivalent net interest income decreased $33 million, largely due to two fewer calendar days.

How did credit quality trend?

Credit quality improved. The provision for credit losses was $130 million, net charge-offs were $114 million (0.34% of average loans, annualized), and nonaccrual loans were $1.540 billion, or 1.14% of loans outstanding. The allowance for credit losses rose to 1.63% of loans from 1.61%, reflecting a modest deterioration in macroeconomic forecasts.

How much capital did M&T return to shareholders, and how did its capital ratios change?

M&T repurchased 3,415,303 common shares for a total cost of $662 million, including the share repurchase excise tax. Cash dividends declared were $223 million on common stock and $36 million on preferred stock. The estimated CET1 capital ratio fell 18 basis points to 11.50% at March 31, 2025.

What outlook did M&T provide for 2025?

The investor presentation projects 2025 taxable-equivalent net interest income of $7.05 billion to $7.15 billion, a net interest margin in the mid to high 3.60s, fee income of $2.5 billion to $2.6 billion, GAAP noninterest expense of $5.4 billion to $5.5 billion, and net charge-offs of about 40 basis points of average loans. It also targets a CET1 capital ratio of about 11% in 2025, with share repurchase flexibility depending on risk-weighted asset trends.

M&T Bank 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 14, 2025. Cited figures are marked; the original filing is the authoritative source.

M&T Bank Corporation reported net income of $584 million^a, or $3.32 of diluted earnings per common share, for the quarter ended March 31, 2025, compared with $681 million ($3.86 per diluted share) in the fourth quarter of 2024 and $531 million ($3.02 per diluted share) in the first quarter of 2024.

Net operating income, a non-GAAP measure that excludes after-tax intangible amortization, was $594 million^b, or $3.38 per diluted share. Net interest margin widened to 3.66% from 3.58% in the prior quarter, while the provision for credit losses fell to $130 million from $140 million, and net charge-offs declined to $114 million from $160 million. Nonaccrual loans improved to 1.14% of loans outstanding from 1.25% at December 31, 2024.

Noninterest income decreased to $611 million^c from $657 million in the fourth quarter, reflecting a $23 million distribution from the Bayview Lending Group investment and net securities gains in the prior quarter. Noninterest expense rose to $1.415 billion from $1.363 billion, driven by seasonal salaries and employee benefits of $110 million.

M&T repurchased 3,415,303 shares for a total cost of $662 million^d, and its estimated CET1 capital ratio declined to 11.50% from 11.68%. The filing also furnishes an investor presentation that includes 2025 outlook figures: taxable-equivalent net interest income of $7.05 billion to $7.15 billion, a net interest margin in the mid to high 3.60s, fee income of $2.5 billion to $2.6 billion, GAAP expenses of $5.4 billion to $5.5 billion, and a CET1 capital ratio target of approximately 11% in 2025.

02—Key points

Key Highlights

Net income of $584 million, or $3.32 diluted EPS, up from $531 million and $3.02 a year earlier; net operating income of $594 million, or $3.38 per diluted share.
Net interest margin rose to 3.66% from 3.58% in the fourth quarter of 2024, reflecting lower funding costs partly offset by lower yields on earning assets.
Provision for credit losses declined to $130 million from $140 million in the prior quarter and $200 million a year earlier; net charge-offs fell to $114 million from $160 million.
Nonaccrual loans improved to 1.14% of loans outstanding from 1.25% at December 31, 2024, and total nonperforming assets were $1.574 billion.
Noninterest income fell to $611 million from $657 million, while noninterest expense rose to $1.415 billion from $1.363 billion, mainly on seasonal compensation costs of $110 million.
M&T repurchased 3,415,303 shares for $662 million, and the estimated CET1 capital ratio declined to 11.50% from 11.68%.
The investor presentation sets 2025 outlook targets, including a net interest margin in the mid to high 3.60s and a CET1 capital ratio target of approximately 11%.

03—Questions

Frequently Asked Questions

How did M&T's first quarter 2025 earnings compare with the prior quarter and the prior year?
Net income was $584 million, or $3.32 per diluted share, versus $681 million ($3.86) in the fourth quarter of 2024 and $531 million ($3.02) in the first quarter of 2024. The fourth quarter included a $23 million Bayview Lending Group distribution and net securities gains that did not recur.
What drove the change in net interest margin?
The net interest margin widened to 3.66% from 3.58% in the fourth quarter, reflecting lower funding costs on interest-bearing deposits and short-term borrowings, partially offset by lower yields on interest-bearing deposits at banks and on loans and leases. Taxable-equivalent net interest income decreased $33 million, largely due to two fewer calendar days.
How did credit quality trend?
Credit quality improved. The provision for credit losses was $130 million, net charge-offs were $114 million (0.34% of average loans, annualized), and nonaccrual loans were $1.540 billion, or 1.14% of loans outstanding. The allowance for credit losses rose to 1.63% of loans from 1.61%, reflecting a modest deterioration in macroeconomic forecasts.
How much capital did M&T return to shareholders, and how did its capital ratios change?
M&T repurchased 3,415,303 common shares for a total cost of $662 million, including the share repurchase excise tax. Cash dividends declared were $223 million on common stock and $36 million on preferred stock. The estimated CET1 capital ratio fell 18 basis points to 11.50% at March 31, 2025.
What outlook did M&T provide for 2025?
The investor presentation projects 2025 taxable-equivalent net interest income of $7.05 billion to $7.15 billion, a net interest margin in the mid to high 3.60s, fee income of $2.5 billion to $2.6 billion, GAAP noninterest expense of $5.4 billion to $5.5 billion, and net charge-offs of about 40 basis points of average loans. It also targets a CET1 capital ratio of about 11% in 2025, with share repurchase flexibility depending on risk-weighted asset trends.

04—Continue

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