10-Q · May 5, 2026
M&T Bank reported a strong Q1 2026 performance with net income of $664 million, representing a 14% increase compared to the previous year. The bank demonstrated a revenue increase to $3.54 billion, exceeding…
Earnings analysis · 10-Q
MTB earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
M&T delivered a strong Q2, with $2.532 billion of revenue, $818 million of net income and diluted EPS of $5.32, up 23% and 29%, respectively, from Q1. Results benefited from higher earning assets, improved commercial…
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M&T delivered a strong Q2, with $2.532 billion of revenue, $818 million of net income and diluted EPS of $5.32, up 23% and 29%, respectively, from Q1. Results benefited from higher earning assets, improved commercial credit performance, BLG distributions, trust and swap-fee growth, and seasonally lower compensation costs; all three reportable segments grew sequentially. The principal offsets are increased CRE concentration, higher wholesale borrowings and sensitivity to adverse macroeconomic and rate scenarios, although asset-quality metrics and stated liquidity coverage improved or remained sound.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $5.32
What stood out
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Revenue and earnings accelerated
Q2 revenue was $2.532 billion, comprising $1.792 billion of net interest income and $740 million of other income. Net income rose $154 million, or 23%, sequentially to $818 million and was up $102 million from $716 million in Q2 2025.
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EPS rose sharply and beat consensus
Diluted EPS increased to $5.32 from $4.13 in Q1 2026 and $4.24 in Q2 2025. The reported $5.35 basic EPS exceeded the supplied $4.67 consensus estimate by 14.56%.
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NII growth with stable margin
Taxable-equivalent net interest income increased $41 million sequentially to $1.804 billion, while net interest margin held at 3.70%. For the first six months, NIM expanded 6 basis points year over year from 3.64% to 3.70%.
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Seasonal expense decline lifted efficiency
Expenses fell $89 million, or 6%, sequentially to $1.349 billion, principally because salaries and benefits declined $88 million. The non-GAAP efficiency ratio improved to 52.8% from 58.3%.
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Provision and problem credits declined
Credit trends improved: provision fell to $120 million from $140 million, net charge-offs declined to $80 million from $105 million, and nonaccrual loans fell to $1.208 billion from $1.240 billion. Criticized CRE loans decreased $990 million from December 2025 to $2.464 billion.
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C&I lending growth and capital returns
Loan growth remained solid, with average loans increasing $3.0 billion sequentially to $141.4 billion, led by a $2.3 billion increase in commercial and industrial loans. M&T also repurchased 2.1 million shares for $465 million during Q2.
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Cash flow and capex not disclosed
Reported free cash flow is not disclosed in the provided 10-Q text; bank cash-flow/capex metrics therefore cannot be calculated from this filing extract.
What to watch
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CRE concentration increased
Commercial real estate remains a concentration risk: CRE exposure approximated 134% of Tier 1 capital plus allowable allowance for credit losses at June 30, 2026, up from 124% at December 31, 2025. The company specifically cites vacancy, debt-service-coverage and refinancing pressure, including for office properties.
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Downside macro scenario raises losses
Under M&T's modeled downside scenario, expected credit losses would increase $252 million; that scenario assumes 7.0% Year-1 unemployment and a 12.9% Year-1 decline in the commercial real estate price index.
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Borrowings rose to fund liquidity needs
Wholesale funding usage increased: period-end short-term borrowings were $4.6 billion versus $2.1 billion at December 31, 2025, while long-term borrowings were $13.6 billion versus $10.9 billion. Available liquidity nevertheless remained $85.538 billion, or about 124% of uninsured deposits not collateralized by M&T.
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No formal risk-factor update; rate risk persists
Item 1A states there were no material changes to risk factors from the 2025 Annual Report. However, rate sensitivity remains: a modeled 200-basis-point rate increase would reduce projected net interest income by 0.64% at June 30, 2026.
Management's outlook
The 10-Q contains no explicit numeric revenue or EPS guidance. Management stated it does not anticipate activities that would cause a significant liquidity strain, while noting future net interest income and margin can be affected by rate, spread, portfolio-mix and interest-free-funds changes.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.