01—Abstract
Summary
Summary of the 8-K filed April 15, 2026. Cited figures are marked; the original filing is the authoritative source.
M&T Bank Corporation reported first quarter 2026 net income of $664 milliona, or $4.13 of diluted earnings per common share, compared with $759 million, or $4.67 per share, in the fourth quarter of 2025 and $584 million, or $3.32 per share, in the first quarter of 2025.
Net operating income, a non-GAAP measure that excludes after-tax intangible amortization, was $671 millionb, or $4.18 per diluted share. Net interest margin widened 2 basis points from the fourth quarter to 3.71%, as funding costs declined faster than earning-asset yields. Noninterest income was $689 million and noninterest expense was $1.438 billion, which rose $59 million from the fourth quarter, driven by seasonally higher salaries and employee benefits of $115 million.
Credit quality improved on most measures. Nonaccrual loans fell to $1.240 billionc from $1.252 billion in the fourth quarter and $1.540 billion a year earlier, and net charge-offs were $105 million, or 0.31% of average loans annualized, versus 0.54% in the fourth quarter. The provision for credit losses rose to $140 million from $125 million.
The allowance for loan losses was 1.53% of total loans. Capital was reduced by share repurchases: M&T bought back 5.5 million shares for $1.25 billiond, and its estimated CET1 capital ratio declined to 10.33% from 10.84% in the fourth quarter. Period-end tangible book value per share was $115.96, down from $117.45.
The filing also includes an investor presentation with 2026 outlook guidance: taxable-equivalent net interest income of $7.2 to $7.35 billion, fee income of $2.675 to $2.775 billion, GAAP expenses of $5.5 to $5.6 billion, net charge-offs of about 40 basis points of average loans, and a CET1 capital ratio of 10.0% to 10.5%. The company also disclosed that it elected to measure residential mortgage servicing rights at fair value beginning January 1, 2026, which added $197 million after tax to retained earnings.
02—Key points
Key Highlights
- Diluted EPS of $4.13 for 1Q26, up from $3.32 in 1Q25 (+24%) but down from $4.67 in 4Q25; net operating diluted EPS was $4.18.
- Net income of $664 million versus $759 million in 4Q25 and $584 million in 1Q25; net interest margin rose 2 basis points to 3.71%.
- Net charge-offs declined to $105 million (0.31% of average loans annualized) from $185 million (0.54%) in 4Q25; nonaccrual loans fell to $1.240 billion.
- Noninterest expense rose $59 million (4%) from 4Q25 to $1.438 billion, mainly from $115 million of seasonally higher compensation-related costs.
- M&T repurchased 5.5 million shares for $1.25 billion in the quarter; the estimated CET1 capital ratio fell to 10.33% from 10.84%.
- Noninterest income included a $33 million distribution from the Bayview Lending Group investment and the effect of the January 1, 2026 mortgage servicing rights fair value election.
- The investor presentation's 2026 outlook calls for taxable-equivalent net interest income of $7.2 to $7.35 billion and GAAP expenses of $5.5 to $5.6 billion.
03—Questions
Frequently Asked Questions
Why did diluted EPS decline from the fourth quarter even though net interest margin improved?
Diluted EPS fell to $4.13 from $4.67 in 4Q25. Net income declined to $664 million from $759 million, while noninterest expense rose $59 million, mainly from seasonally higher salaries and employee benefits of $115 million. Taxable-equivalent net interest income also fell $27 million to $1.763 billion, reflecting two fewer calendar days in the quarter. Fourth-quarter results had also included a $30 million charitable contribution to The M&T Charitable Foundation.
What drove the change in noninterest income in the first quarter of 2026?
Total noninterest income was $689 million, down $7 million from 4Q25. Mortgage banking revenues fell $28 million, reflecting the accounting election to measure residential mortgage servicing rights at fair value, which took effect January 1, 2026, and lower gains on commercial mortgage loans held for sale. Other revenues from operations rose $24 million, including a $33 million distribution from the Bayview Lending Group investment.
How did credit quality trend in the quarter?
Credit quality improved on most measures. Net charge-offs fell to $105 million from $185 million in 4Q25, and nonaccrual loans declined to $1.240 billion from $1.252 billion. Accruing loans past due 90 days or more increased to $646 million from $561 million, predominantly government-guaranteed residential real estate loans. The provision for credit losses rose to $140 million from $125 million.
How much capital did M&T return, and how did its capital ratios change?
M&T repurchased $1.25 billion of common stock, or 5.5 million shares, in the quarter, compared with $507 million in 4Q25. Cash dividends declared were $224 million on common stock and $43 million on preferred stock. The estimated CET1 capital ratio was 10.33% at March 31, 2026, down from 10.84% at December 31, 2025, and total risk-weighted assets were estimated at $164.2 billion.
What does the 2026 outlook in the investor presentation indicate?
The presentation projects 2026 taxable-equivalent net interest income of $7.2 to $7.35 billion, with the bottom half of that range corresponding to a net interest margin in the high 3.60s. It expects fee income of $2.675 to $2.775 billion, GAAP expenses of $5.5 to $5.6 billion, net charge-offs of 40 basis points plus or minus of average loans, a taxable-equivalent tax rate of 24.0% plus or minus, average loans of $140 to $142 billion, average deposits of $165 to $167 billion, and a CET1 capital ratio of 10.0% to 10.5%.
04—Continue