IntrinsicIntrinsic

M&T BANK CORP

MTB
🏢 State Commercial Banks

Business Operations Summary

M&T Bank Corporation is a financial holding company and bank holding company headquartered in Buffalo, New York, with consolidated total assets of $213.5 billion at December 31, 2025. The Company operates through two wholly-owned bank subsidiaries: M&T Bank, a New York-chartered commercial bank with total consolidated assets of $212.9 billion and 942 domestic banking offices primarily located in the Northeastern and Mid-Atlantic regions of the U.S., including the District of Columbia, and a full-service commercial banking office in Ontario, Canada; and Wilmington Trust, N.A., a national bank with total consolidated assets of $773 million that offers various institutional client and wealth management services. The Company engages in limited international activities, with assets and revenues associated with international activities representing less than 1% of the Company's consolidated assets and revenues. The only activities that contributed 10% or more of the sum of consolidated interest income and other income in any of the last three years were interest income on loans in each of 2025, 2024 and 2023, interest income on investment securities in 2025 and interest income on deposits at banks in each of 2024 and 2023.

The Company faces extensive and intensive competition in the products and services it offers, competing with other banking institutions, thrifts, credit unions, personal loan companies, sales finance companies, leasing companies, securities brokerage firms, mutual fund companies, hedge funds, private credit funds, wealth and investment advisory firms, insurance companies, other financial services-related entities, and financial technology companies. The Company competes on the basis of several factors, including capital, access to capital, revenue generation, products, services, transaction execution, innovation, reputation, and price. M&T Bank's most recent Community Reinvestment Act rating was "Outstanding" from the Federal Reserve, and its most recent New York State CRA rating was also "Outstanding" from the NYSDFS.

M&T generates revenue primarily through net interest income on loans and investment securities, as well as noninterest income from sources such as service charges on deposit accounts, trust income, mortgage banking revenues, and other revenues from operations. The Company's lending is generally focused on consumers residing in areas where M&T Bank maintains banking offices, and on small and medium-size businesses based in those areas, although loans are originated through offices in other states and in Ontario, Canada. The Company's core banking business is largely concentrated within its retail banking office network footprint, located principally in the Northeast and Mid-Atlantic regions. The Company's bank subsidiaries offer a wide range of retail and commercial banking, wealth management, trust and institutional services to their customers. M&T Bank provides banking products and services through a domestic banking office and ATM network located throughout New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Massachusetts, Maine, Vermont, New Hampshire, Virginia, West Virginia and the District of Columbia.

The Company's lending activities are diversified across commercial and industrial, commercial real estate, residential real estate, and consumer loan categories. Commercial and industrial loans, including leases, represented 46% of total loans at December 31, 2025, totaling $63.548 billion . Owner-occupied loans secured by real estate included in commercial and industrial loans at December 31, 2025 totaled $11.2 billion . Commercial leases included in total commercial and industrial loans at December 31, 2025 aggregated $2.7 billion . Commercial real estate loans totaled $23.819 billion at December 31, 2025, with adjustable-rate commercial real estate loans representing approximately 83% of the commercial real estate loan portfolio at the 2025 year end. Commercial real estate construction and development loans totaled $3.6 billion at December 31, 2025, or 3% of total loans. Residential real estate loans totaled $24.874 billion at December 31, 2025. Consumer loans totaled $26.461 billion at December 31, 2025, comprising home equity lines and loans of $4.807 billion , recreational finance of $14.092 billion , automobile loans of $5.167 billion , other secured loans of $810 million , and other unsecured loans of $1.585 billion . The Company's investment securities portfolio averaged $35.8 billion in 2025, up $5.0 billion from 2024, and is largely comprised of government-issued or guaranteed residential and commercial mortgage-backed securities and U.S. Treasury securities, but also includes municipal and other securities. The weighted-average current yield for total investment securities available for sale increased to 4.64% at December 31, 2025 compared with 4.30% at December 31, 2024, while the weighted-average duration of that portfolio decreased to 2.4 years from 2.6 years at each of those respective dates.

The Company's noninterest income sources include service charges on deposit accounts, trust income, brokerage services income, credit card and merchant discount income, and other revenues from operations. In 2025, total other income was $2.742 billion , compared to $2.427 billion in 2024, reflecting higher mortgage banking revenues, service charges on deposit accounts, trust income and other revenues from operations. The Company's other expense totaled $5.493 billion in 2025, compared to $5.359 billion in 2024, reflecting higher salaries and employee benefits expense and outside data processing and software costs, partially offset by lower FDIC special assessments that included a $37 million reduction of expense in 2025 as compared with $34 million of expense in 2024.

On October 31, 2025, M&T issued 45,000 shares of Perpetual Fixed Rate Non-Cumulative Preferred Stock, Series K, with a liquidation preference of $10,000 per share. Under approved capital plans and programs authorized by the Board of Directors, M&T repurchased 14.3 million shares of its common stock in 2025 at a total cost of $2.66 billion . In 2024, M&T repurchased 2.1 million shares of its common stock at a total cost of $400 million . On January 22, 2025, M&T's Board of Directors authorized a program under which $4.0 billion of common shares may be repurchased. In June 2025, the Company sold $661 million of out-of-footprint residential builder and developer loans and recognized a gain on sale of $15 million . The Company's total share of the FDIC's special assessment is estimated at $194 million , of which $98 million and $74 million was paid in 2025 and 2024, respectively. The amount of FDIC special assessment remaining to be paid at December 31, 2025 was $22 million .

Net income for 2025 was $2.851 billion , an increase of $263 million from $2.588 billion in 2024. Diluted earnings per common share were $17.00 in 2025, compared to $14.64 in 2024. Net interest income on a taxable-equivalent basis was $6.992 billion in 2025, an increase of $90 million from $6.902 billion in 2024, reflecting a 9 basis-point widening of the net interest margin. The provision for credit losses declined $105 million to $505 million in 2025, mainly reflecting improved levels of criticized loans. The Company's effective tax rates were 22.8% in 2025 and 21.8% in 2024, reflective of $8 million and $31 million of discrete tax benefits in each of those respective years. Return on average assets was 1.35% in 2025, compared to 1.23% in 2024. Return on average common shareholders' equity was 10.27% in 2025, compared to 9.54% in 2024.

Business Outlook & Future Growth Drivers

The Company's growth strategy includes organic expansion of its lending portfolio, particularly in commercial and industrial loans and consumer loans. Average commercial and industrial loans grew $2.6 billion from 2024, reflecting higher average balances of loans to financial and insurance companies and motor vehicle and recreational finance dealers. Average consumer loans increased $3.1 billion reflecting recreational finance and automobile average loan growth of $2.2 billion and $638 million , respectively. The Company also retains originated residential mortgage loans and purchases, contributing to average residential real estate loan growth of $945 million . The Company from time to time considers acquiring banks, thrift institutions, branch offices of banks or thrift institutions, or other businesses within markets currently served by the Company or in other locations that would complement the Company's business or its geographic reach, and intends to continue this practice.

The Company has executed various strategies to lessen its relative concentration of commercial real estate loans and to reduce the amount of criticized loans in this category throughout 2024 and 2025. Average commercial real estate loans declined $5.3 billion as the Company executed various strategies to reduce its relative concentration of such loans. Average permanent and construction commercial real estate loans decreased by $3.2 billion and $2.1 billion , respectively. The Company's investment securities portfolio averaged $35.8 billion in 2025, up $5.0 billion from 2024, reflecting the deployment of liquidity into primarily fixed rate mortgage-backed investment securities designated as available for sale. The weighted-average current yield for total investment securities available for sale increased to 4.64% at December 31, 2025 compared with 4.30% at December 31, 2024.

The Company's efficiency ratio, a non-GAAP measure, was 56.0% in 2025, compared to 56.9% in 2024. Noninterest operating expense was $5.451 billion in 2025, compared to $5.306 billion in 2024. The increase in noninterest expense reflected higher salaries and employee benefits expense and outside data processing and software costs, partially offset by lower FDIC special assessments. The Company's net interest margin widened by 9 basis points to 3.67% in 2025, driven by a decrease of 51 basis points in the cost of interest-bearing liabilities, partially offset by a 22 basis-point decline in the yield received on earning assets and a 20 basis-point reduction in the contribution of net interest-free funds.

As of December 31, 2025, the Company employed 21,839 full-time and 439 part-time employees. The employee base was concentrated in the Northeast and Mid-Atlantic U.S., with approximately 47% of employees residing in New York, followed by approximately 10% in Maryland, 9% in Connecticut, 7% in each of Pennsylvania and Delaware and 12% in other states where M&T Bank operates domestic banking offices. Approximately 8% of the Company's employee base resides outside of its retail banking footprint, inclusive of 148 international employees predominantly based in the United Kingdom, Ireland, Canada and Germany. The Company's employee base includes 5,473 employees that support customers in the retail banking office network. The average tenure of the Company's employees is 9.5 years and the average tenure of the Company's executive officers is 16.3 years . The Company conducts "Annual Engagement Surveys," with average participation rates around 90% .

Under approved capital plans and programs authorized by the Board of Directors, M&T repurchased 14.3 million shares of its common stock in 2025 at a total cost of $2.66 billion . On January 22, 2025, M&T's Board of Directors authorized a program under which $4.0 billion of common shares may be repurchased. On October 31, 2025, M&T issued 45,000 shares of Perpetual Fixed Rate Non-Cumulative Preferred Stock, Series K, with a liquidation preference of $10,000 per share. The Company's total share of the FDIC's special assessment is estimated at $194 million , of which $98 million and $74 million was paid in 2025 and 2024, respectively. The amount of FDIC special assessment remaining to be paid at December 31, 2025 was $22 million .

The Company's business and financial performance is impacted significantly by market interest rates and movements in those rates. The FOMC lowered its federal funds target interest rate by a total of 100 basis points in the last four months of 2024 and by a total of 75 basis points in the last four months of 2025. The Company's regional concentrations expose it to adverse economic conditions in its primary retail banking office footprint, located principally in the Northeast and Mid-Atlantic regions. The Company is subject to extensive government regulation and supervision, and this regulatory environment can be and has been significantly impacted by financial regulatory reform initiatives. The Company may be subject to more stringent capital and liquidity requirements, including a proposed long-term debt rule that, if adopted, would require the Company to maintain more long-term debt than it does currently, which would likely adversely affect interest expense, net interest income and net interest margin.

The Company faces significant competition from financial technology companies, which using digital, mobile and other technologies, including stablecoins, increasingly offer traditional banking products and services or products that could be viewed as substitutes for traditional banking products and services. The passage of the GENIUS Act in July 2025, which establishes a regulatory framework for "payment stablecoins" and their issuers, could result in increased competition with respect to M&T's bank subsidiaries' deposit products. The Company also faces risks related to the discontinuation of benchmark rates as permissible rate indices in new contracts and the development of alternative benchmark indices to replace discontinued benchmarks, which could adversely impact the Company's business and results of operations.

Major Risk Factors & Challenges

The Company's business and financial performance is significantly impacted by market interest rates and movements in those rates, with the FOMC lowering the federal funds target interest rate by a total of 100 basis points in the last four months of 2024 and by a total of 75 basis points in the last four months of 2025. The Company's regional concentrations expose it to adverse economic conditions in its primary retail banking office footprint, located principally in the Northeast and Mid-Atlantic regions. The Company's credit risk is heightened by the concentration of commercial real estate loans in its loan portfolio, including construction loans, loans secured by office, retail, health services, hospitality and multifamily properties and loans secured by property in the New York City and certain other large metropolitan areas. The Company's total share of the FDIC's special assessment is estimated at $194 million , of which $22 million remained to be paid at December 31, 2025. The Company may be subject to more stringent capital and liquidity requirements, including a proposed long-term debt rule that, if adopted, would require the Company to maintain more long-term debt than it does currently. The Company's ability to return capital to shareholders and to pay dividends on common stock may be adversely affected by market and other factors outside of its control and will depend, in part, on the results of supervisory stress tests administered by the Federal Reserve, with M&T's SCB of 2.7% becoming effective on October 1, 2025.

Management Priorities & Sentiments

Management's message to shareholders emphasizes the Company's financial performance in 2025, highlighting an increase in net income to $2.851 billion from $2.588 billion in 2024, and diluted earnings per common share of $17.00 compared to $14.64 in the prior year. The increase in net income reflects loan growth, favorable net repricing of earning assets and interest-bearing liabilities, a decline in the provision for credit losses, and higher noninterest income. Management notes that the Company executed various strategies to lessen its relative concentration of commercial real estate loans and to reduce the amount of criticized loans in this category throughout 2024 and 2025. The Company's strategic priorities include maintaining a strong capital position, as evidenced by the repurchase of 14.3 million shares of common stock for $2.66 billion and the issuance of 45,000 shares of Series K preferred stock, while continuing to focus on organic growth in commercial and industrial and consumer lending portfolios. Management also emphasizes the importance of managing interest rate risk, as the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its earning assets and interest-bearing liabilities. The Company's SCB of 2.7% became effective on October 1, 2025, resulting in a CET1 capital requirement of 7.2% .

References

  1. [1] Item 1, Business
  2. [2] Item 7, MD&A — Corporate Profile
  3. [3] Item 2, Properties
  4. [4] Item 1, Business
  5. [5] Item 1, Business
  6. [6] Item 7, MD&A — Lending activities
  7. [7] Item 7, MD&A — Table 9
  8. [8] Item 7, MD&A — Lending activities
  9. [9] Item 7, MD&A — Lending activities
  10. [10] Item 7, MD&A — Table 9
  11. [11] Item 7, MD&A — Lending activities
  12. [12] Item 7, MD&A — Lending activities
  13. [13] Item 7, MD&A — Lending activities
  14. [14] Item 7, MD&A — Table 9
  15. [15] Item 7, MD&A — Table 9
  16. [16] Item 7, MD&A — Table 9
  17. [17] Item 7, MD&A — Table 9
  18. [18] Item 7, MD&A — Table 9
  19. [19] Item 7, MD&A — Table 9
  20. [20] Item 7, MD&A — Table 9
  21. [21] Item 7, MD&A — Table 13
  22. [22] Item 7, MD&A — Investing activities
  23. [23] Item 7, MD&A — Investing activities
  24. [24] Item 7, MD&A — Investing activities
  25. [25] Item 7, MD&A — Investing activities
  26. [26] Item 7, MD&A — Investing activities
  27. [27] Item 7, MD&A — Table 1
  28. [28] Item 7, MD&A — Table 1
  29. [29] Item 7, MD&A — Table 1
  30. [30] Item 7, MD&A — Table 1
  31. [31] Item 7, MD&A — Financial Overview
  32. [32] Item 7, MD&A — Financial Overview
  33. [33] Item 7, MD&A — Financial Overview
  34. [34] Item 7, MD&A — Financial Overview
  35. [35] Item 7, MD&A — Financial Overview
  36. [36] Item 7, MD&A — Financial Overview
  37. [37] Item 7, MD&A — Financial Overview
  38. [38] Item 7, MD&A — Financial Overview
  39. [39] Item 5, Issuer Purchases of Equity Securities
  40. [40] Item 7, MD&A — Lending activities
  41. [41] Item 7, MD&A — Lending activities
  42. [42] Item 1, Business — FDIC Insurance Assessments
  43. [43] Item 1, Business — FDIC Insurance Assessments
  44. [44] Item 1, Business — FDIC Insurance Assessments
  45. [45] Item 1, Business — FDIC Insurance Assessments
  46. [46] Item 7, MD&A — Table 1
  47. [47] Item 7, MD&A — Financial Overview
  48. [48] Item 7, MD&A — Table 1
  49. [49] Item 7, MD&A — Table 1
  50. [50] Item 7, MD&A — Table 1
  51. [51] Item 7, MD&A — Table 1
  52. [52] Item 7, MD&A — Taxable-equivalent Net Interest Income
  53. [53] Item 7, MD&A — Table 1
  54. [54] Item 7, MD&A — Taxable-equivalent Net Interest Income
  55. [55] Item 7, MD&A — Financial Overview
  56. [56] Item 7, MD&A — Table 1
  57. [57] Item 7, MD&A — Financial Overview
  58. [58] Item 7, MD&A — Financial Overview
  59. [59] Item 7, MD&A — Financial Overview
  60. [60] Item 7, MD&A — Financial Overview
  61. [61] Item 7, MD&A — Table 1
  62. [62] Item 7, MD&A — Table 1
  63. [63] Item 7, MD&A — Table 1
  64. [64] Item 7, MD&A — Table 1
  65. [65] Item 7, MD&A — Lending activities
  66. [66] Item 7, MD&A — Lending activities
  67. [67] Item 7, MD&A — Lending activities
  68. [68] Item 7, MD&A — Lending activities
  69. [69] Item 7, MD&A — Lending activities
  70. [70] Item 7, MD&A — Lending activities
  71. [71] Item 7, MD&A — Lending activities
  72. [72] Item 7, MD&A — Lending activities
  73. [73] Item 7, MD&A — Table 13
  74. [74] Item 7, MD&A — Investing activities
  75. [75] Item 7, MD&A — Investing activities
  76. [76] Item 7, MD&A — Investing activities
  77. [77] Item 7, MD&A — Table 2
  78. [78] Item 7, MD&A — Table 2
  79. [79] Item 7, MD&A — Table 3
  80. [80] Item 7, MD&A — Table 3
  81. [81] Item 7, MD&A — Taxable-equivalent Net Interest Income
  82. [82] Item 7, MD&A — Table 1
  83. [83] Item 7, MD&A — Taxable-equivalent Net Interest Income
  84. [84] Item 7, MD&A — Taxable-equivalent Net Interest Income
  85. [85] Item 7, MD&A — Taxable-equivalent Net Interest Income
  86. [86] Item 1, Business — Human Capital Resources
  87. [87] Item 1, Business — Human Capital Resources
  88. [88] Item 1, Business — Human Capital Resources
  89. [89] Item 1, Business — Human Capital Resources
  90. [90] Item 1, Business — Human Capital Resources
  91. [91] Item 1, Business — Human Capital Resources
  92. [92] Item 1, Business — Human Capital Resources
  93. [93] Item 1, Business — Human Capital Resources
  94. [94] Item 1, Business — Human Capital Resources
  95. [95] Item 1, Business — Human Capital Resources
  96. [96] Item 1, Business — Human Capital Resources
  97. [97] Item 1, Business — Human Capital Resources
  98. [98] Item 1, Business — Human Capital Resources
  99. [99] Item 7, MD&A — Financial Overview
  100. [100] Item 7, MD&A — Financial Overview
  101. [101] Item 5, Issuer Purchases of Equity Securities
  102. [102] Item 7, MD&A — Financial Overview
  103. [103] Item 7, MD&A — Financial Overview
  104. [104] Item 1, Business — FDIC Insurance Assessments
  105. [105] Item 1, Business — FDIC Insurance Assessments
  106. [106] Item 1, Business — FDIC Insurance Assessments
  107. [107] Item 1, Business — FDIC Insurance Assessments
  108. [108] Item 7, MD&A — Taxable-equivalent Net Interest Income
  109. [109] Item 7, MD&A — Taxable-equivalent Net Interest Income
  110. [110] Item 7, MD&A — Taxable-equivalent Net Interest Income
  111. [111] Item 7, MD&A — Taxable-equivalent Net Interest Income
  112. [112] Item 1, Business — FDIC Insurance Assessments
  113. [113] Item 1, Business — FDIC Insurance Assessments
  114. [114] Item 1, Business — Stress Testing and SCB
  115. [115] Item 7, MD&A — Table 1
  116. [116] Item 7, MD&A — Table 1
  117. [117] Item 7, MD&A — Table 1
  118. [118] Item 7, MD&A — Table 1
  119. [119] Item 7, MD&A — Financial Overview
  120. [120] Item 7, MD&A — Financial Overview
  121. [121] Item 7, MD&A — Financial Overview
  122. [122] Item 1, Business — Stress Testing and SCB
  123. [123] Item 1, Business — Stress Testing and SCB
  124. [124] Item 7, MD&A — Table 1
  125. [125] Item 7, MD&A — Table 1
  126. [126] Item 7, MD&A — Table 1
  127. [127] Item 7, MD&A — Table 1
  128. [128] Item 7, MD&A — Table 1
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  135. [135] Item 7, MD&A — Table 1
  136. [136] Item 7, MD&A — Table 1
  137. [137] Item 7, MD&A — Table 1
  138. [138] Item 7, MD&A — Table 1
  139. [139] Item 7, MD&A — Table 1
  140. [140] Item 7, MD&A — Table 1
  141. [141] Item 7, MD&A — Table 1
  142. [142] Item 7, MD&A — Table 1
  143. [143] Item 7, MD&A — Table 1
  144. [144] Item 7, MD&A — Financial Overview
  145. [145] Item 7, MD&A — Financial Overview
  146. [146] Item 7, MD&A — Financial Overview
  147. [147] Item 7, MD&A — Financial Overview
  148. [148] Item 7, MD&A — Table 2
  149. [149] Item 7, MD&A — Table 2
  150. [150] Item 7, MD&A — Table 2
  151. [151] Item 7, MD&A — Table 2
  152. [152] Item 7, MD&A — Table 2
  153. [153] Item 7, MD&A — Table 2
  154. [154] Item 7, MD&A — Table 2
  155. [155] Item 7, MD&A — Table 2
  156. [156] Item 8, Consolidated Balance Sheet
  157. [157] Item 8, Consolidated Balance Sheet
  158. [158] Item 1, Business
  159. [159] Item 8, Consolidated Balance Sheet
  160. [160] Item 8, Consolidated Balance Sheet
  161. [161] Item 1, Business — Stress Testing and SCB
  162. [162] Item 1, Business — Stress Testing and SCB

Report on Jun 8, 2026