Core Viewpoint - The signing of the GENIUS Act by President Trump is paving the way for the issuance and regulation of stablecoins in the U.S., which may disrupt traditional banking systems in the next 2 to 3 years [1][2]. Legislative Developments - The GENIUS Act establishes a preliminary framework for stablecoin issuance and regulation, while the CLARITY Act aims to clarify the jurisdiction of the SEC and CFTC over the crypto market [1]. - These legislative advancements signify a shift in focus from policy debates to the actual construction of infrastructure in the digital asset market [2]. Market Growth Projections - The stablecoin market is expected to see moderate growth of approximately $25 billion to $75 billion in the short term, which will likely increase demand for U.S. Treasury securities, particularly short-term bills [2]. Banking Sector Response - U.S. banks are preparing for the stablecoin era, with management expressing readiness to offer stablecoin solutions, although there are concerns regarding specific use cases, especially in domestic payment scenarios [3]. - Major banks like JPMorgan and Citigroup are exploring stablecoin capabilities, with JPMorgan launching its deposit token (JPMD) and Citigroup investing in digital asset services [6][7]. Cross-Border Payment Opportunities - Despite skepticism about domestic applications, bank executives see viable use cases for stablecoins in cross-border payments, with some banks viewing this as a "greenfield" market [4]. Short-Term Impact on Domestic Payments - Most banks anticipate minimal short-term impact on their core domestic payment businesses from stablecoins, although competition in cash management services may intensify [5]. Bank Comments on Stablecoins - JPMorgan is actively entering the stablecoin and digital asset space, while Bank of America acknowledges small cross-border payments as a realistic application [6]. - Citigroup is focusing on tokenized services, despite high transaction costs for converting between fiat and stablecoins [6][7]. Digital Asset Applications - Banks are exploring four main application scenarios for digital assets: reserve management and custody services for stablecoins, transaction services, issuing their own stablecoins, and tokenized deposits [7][8]. Future Outlook - Various banks, including PNC and M&T, are developing digital asset services and assessing the feasibility of stablecoins as payment mechanisms, indicating a growing interest in the sector [9].

Core Points - M&T Bank has appointed Tracy S. Woodrow as Regional President for Western New York while she continues her role as Chief Administrative Officer [1][3] - Woodrow will lead the community bank leadership team across an eight-county region, focusing on customer service, community strengthening, and employee support [2][5] - Woodrow has been with M&T Bank since 2013, previously serving as Chief Human Resources Officer and Chief Administrative Officer, overseeing significant employee-related initiatives [3][5] Company Overview - M&T Bank has been headquartered in Buffalo, New York for nearly 170 years and employs 8,000 people in the Western New York region [1][6] - The bank operates 58 branches across Erie, Niagara, Allegany, Cattaraugus, Chautauqua, Genesee, Orleans, and Wyoming counties [6] - M&T Bank is recognized as the leading U.S. Small Business Administration lender in the Buffalo District and ranks as the top commercial lender in the region [6] Community Engagement - In the previous year, M&T Bank employees contributed nearly 87,500 hours of volunteer service and the bank donated $7.6 million to local nonprofits [6] - Woodrow is actively involved in community organizations, serving on various boards and emphasizing mentorship and community improvement [4][5] Leadership Transition - Woodrow succeeds Eric Feldstein, who has served as Western New York Regional President since 2022 and will take on an expanded role leading the bank's combined retail and business banking teams [7]

Core Insights - M&T Bank Corporation reported a 27.7% increase in diluted GAAP EPS to $4.24 in Q2 2025, compared to $3.32 in Q1 2025, alongside $1.1 billion in share repurchases [1] Capital Management - The bank executed $1.1 billion in share repurchases, representing 5.7% of shares outstanding in the first half of 2025, while the CET1 ratio declined by 52 basis points to 10.98% [2] - The decline in the CET1 ratio is attributed to increased capital distributions, with a long-term target set at 10% and an operational range of 11% to 10.75% [3] Risk Management - Criticized loan balances were reduced by $1 billion (11%), with criticized CRE loans declining by $813 million, and net charge-offs remaining below full-year expectations at 32 basis points [4] - The bank's stress capital buffer (SCB) decreased from 3.8% to 2.7%, reflecting efforts to limit on-balance sheet CRE exposure and successful credit sales [5][6] Revenue Growth - Non-interest income rose to $683 million from $611 million in the prior quarter, with an 11% year-over-year growth in fee income, driven by trust and wealth revenues, mortgage subservicing, and European expansion [7][9] - Consumer and residential mortgage loans increased by $1.5 billion sequentially, with specialty lending growth in newly acquired markets contributing to franchise scale benefits [8] Future Outlook - For the full year 2025, net interest margin is expected to be in the mid to high 3.60%s, with net charge-offs forecasted below 40 basis points [10] - Capital targets remain at 10.75%–11% CET1 for the remainder of the year, with anticipated dividend actions from the Board [10]

Financial Data and Key Metrics Changes - The diluted GAAP earnings per share increased to $4.24 from $3.32 in the prior quarter, while net income was $116 million compared to $584 million in the linked quarter [10] - The return on assets (ROA) and return on common equity (ROCE) were reported at 1.37% and 10.39% respectively [10] - The common equity tier 1 (CET1) ratio decreased to an estimated 10.98% from 11.5% at the end of the first quarter [22] Business Line Data and Key Metrics Changes - Average residential mortgage and consumer loans grew by $1.5 billion, reflecting a 3% sequential increase, while commercial loans remained unchanged at $61 billion [15][14] - Noninterest income rose to $683 million from $611 million in the linked quarter, with notable increases in mortgage banking and trust income [18] - Noninterest expenses decreased by $79 million to $1.34 billion, resulting in an efficiency ratio of 55.2%, down from 60.5% in the prior quarter [20] Market Data and Key Metrics Changes - Average total deposits increased by $2.2 billion or 1% to $163.4 billion, with growth across most segments [17] - The yield on investment securities decreased by 19 basis points to 3.81%, primarily due to premium amortization [16] - The net interest margin was reported at 3.62%, a decrease of four basis points from the prior quarter [13] Company Strategy and Development Direction - The company remains focused on growing its New England and Long Island markets, optimizing resources, and enhancing risk management capabilities [29] - The management emphasized a disciplined approach to acquisitions, indicating a preference for smaller, culturally aligned targets [79] - The company aims to maintain a strong capital position while being opportunistic with share repurchases [28] Management's Comments on Operating Environment and Future Outlook - The management acknowledged potential economic slowing and risks related to tariffs and geopolitical conditions, but expressed optimism about the company's positioning [24][25] - The outlook for net interest income is projected to be between $7 billion and $7.15 billion, with a net interest margin expected to average in the mid to high 360s [26] - The management expects net charge-offs for the full year to be less than 40 basis points, with criticized loans anticipated to continue declining [28] Other Important Information - The company executed $1.1 billion in share repurchases during the second quarter, while tangible book value per share grew by 1% [8] - The company reported a $1 billion or 11% reduction in commercial criticized balances, indicating improved asset quality [9] Q&A Session Summary Question: Loan dynamics and CRE portfolio - The management indicated that the CRE pipeline is building, with over $5 billion currently in the pipeline, and expressed optimism for growth towards the end of the year [32][34] Question: Capital management and buyback strategy - The management stated that the current capital range of 10.75% to 11% is appropriate given market uncertainties, and they are actively managing criticized loans [36] Question: Fee income growth and trust business - The management highlighted strong growth in the trust business, driven by new operations in Europe and increased treasury management revenues [40][41] Question: Consumer loan growth outlook - The management noted that recent consumer loan growth was driven by preemptive buying ahead of price increases, but expressed optimism for continued growth in RV and auto loans [70] Question: Deposit competition and funding costs - The management emphasized the importance of core deposits and competitive rates to attract new customers, while managing funding costs effectively [108][109]

Financial Data and Key Metrics Changes - The diluted GAAP earnings per share increased to $4.24 from $3.32 in the prior quarter, while net income was $116 million compared to $584 million in the linked quarter [8][10] - The return on assets (ROA) and return on common equity (ROCE) were reported at 1.37% and 10.39%, respectively [8] - The common equity tier 1 (CET1) ratio at the end of the second quarter was estimated at 10.98%, down from 11.5% at the end of the first quarter [21] Business Line Data and Key Metrics Changes - Average residential mortgage and consumer loans grew by $1.1 billion, reflecting a diversified business model [7] - Noninterest income increased to $683 million from $611 million in the linked quarter, with notable growth in mortgage banking and trust income [17] - The efficiency ratio improved to 55.2% from 60.5% in the prior quarter, indicating better expense management [19] Market Data and Key Metrics Changes - Average total deposits rose by $2.2 billion or 1% to $163.4 billion, with growth across most segments [12] - The yield on investment securities decreased by 19 basis points to 3.81%, primarily due to premium amortization [15] - Commercial real estate (CRE) loans declined by 4% to $25.3 billion, reflecting continued payoffs and paydowns [13] Company Strategy and Development Direction - The company remains focused on growing its New England and Long Island markets while optimizing resources through simplification and enhancing risk management capabilities [27] - The management emphasized a disciplined approach to acquisitions, indicating a preference for cultural fit and credit quality in potential targets [77] - The company aims to maintain a strong capital position while being opportunistic with share repurchases [26] Management's Comments on Operating Environment and Future Outlook - The management acknowledged potential economic slowing and risks related to tariffs and geopolitical conditions, but expressed optimism about the company's strong liquidity and capital generation [23] - The outlook for taxable equivalent net interest income is projected to be between $7 billion and $7.15 billion, reflecting continued softness in commercial and CRE loan growth [24] - The management expects net charge-offs for the full year to be less than 40 basis points, with criticized loans anticipated to continue declining [26] Other Important Information - The company executed $1.1 billion in share repurchases during the second quarter, contributing to a 1% growth in tangible book value per share [6] - The net interest margin was reported at 3.62%, a decrease of four basis points from the prior quarter, primarily due to higher costs of interest-bearing deposits [12] Q&A Session Summary Question: Loan dynamics and CRE portfolio outlook - The management indicated that the CRE pipeline continues to build, with over $5 billion currently in the pipeline, suggesting a positive outlook for growth later in the year [32] Question: Capital management and buyback strategy - The management stated that the target CET1 ratio is around 10%, but given current market uncertainties, operating in the range of 10.75% to 11% is deemed appropriate [36] Question: Fee income growth and trust business performance - The trust business has shown strong growth, driven by investments in Europe and increased demand for corporate trust services [38] Question: Consumer loan growth sustainability - The management noted that recent consumer loan growth was driven by preemptive buying ahead of price increases, but expressed optimism for continued growth in the RV and auto sectors [68] Question: Deposit competition and strategy - The management emphasized the importance of attracting operating accounts and maintaining competitive rates to grow deposits sustainably [106]

Core Viewpoint - M&T Bank Corporation (MTB) reported better-than-expected quarterly results, with adjusted net operating earnings per share of $4.28, surpassing the Zacks Consensus Estimate of $4.04, and showing an increase from $3.79 per share in the same quarter last year [1][9]. Financial Performance - The net income available to common shareholders was $679 million, reflecting an 8.5% increase from the prior-year quarter [2]. - Quarterly revenues reached $2.40 billion, slightly exceeding the Zacks Consensus Estimate of $2.39 billion, and marking a 4.1% year-over-year increase [3]. - Net interest income (NII) declined marginally year over year to $1.72 billion, below the estimate of $1.76 billion [3]. - Total non-interest income was $683 million, up 17% year over year, driven by increases across almost all components, surpassing the estimate of $632.6 million [4]. - Total non-interest expenses rose to $1.34 billion, a 3% increase year over year, attributed to higher salaries, employee benefits, and other operational costs [4]. Efficiency and Profitability - The efficiency ratio improved to 55.2%, down from 55.3% in the previous year, indicating enhanced profitability [5]. - The return on average tangible assets and average tangible common shareholder equity were 1.44% and 15.54%, respectively, compared to 1.31% and 15.27% in the prior-year quarter [10]. Loan and Deposit Trends - Total loans increased to $136.1 billion as of June 30, 2025, up 1.1% from the prior quarter, while total deposits slightly decreased to $164.5 billion [6]. - The company’s estimates for loans and leases were $133 billion, and for deposits, $160.7 billion [6]. Credit Quality - Net charge-offs decreased by 21.2% to $108 million year over year, better than the estimate of $143 million [7]. - The provision for credit losses was $125 million, down 16.7% from the previous year, aligning closely with the estimate of $125.9 million [7]. - Non-performing assets declined 22.1% year over year to $1.60 billion, although slightly above the estimate of $1.44 billion [7]. Capital Management - M&T Bank's estimated Common Equity Tier 1 ratio was 10.98%, down from 11.45% in the second quarter of 2024 [10]. - The tangible equity per share increased to $112.48 from $102.42 in the same quarter last year [10]. - The company repurchased 6.07 million shares for $175.93 million as part of its capital plan during the second quarter of 2025 [11].

Financial Performance Highlights - GAAP diluted EPS increased by 28% quarter-over-quarter (QoQ) and 14% year-over-year (YoY)[32] - Return on Assets rose by 23 basis points (bps) QoQ[32] - Return on Common Equity increased by 203 bps QoQ[32] - Provision for Credit Losses declined by 4% QoQ and 17% YoY[32] - Diluted Net Operating EPS increased +27% QoQ and +13% YoY[33] Balance Sheet - Average loans increased by $563 million QoQ[43] - CRE loans declined by 4% (-$926 million), reflecting higher payoffs and the sale of an out-of-footprint portfolio[43] - Consumer loans rose by 4% (+$1 billion), reflecting higher average recreational finance and automobile loans[43] - Average deposits increased by $22 billion or 1% QoQ[47] - Repurchased $11 billion of common shares in 2Q25[39] Income Statement - Noninterest income increased by $72 million or 12% QoQ[52] - Noninterest expense decreased by $79 million, or -6% QoQ[57] - Taxable-equivalent net interest income increased +$15 million or 1% QoQ[38] Credit Quality - Criticized loans decreased -$10 billion QoQ[68]

Core Insights - M&T Bank Corporation reported $2.4 billion in revenue for Q2 2025, a year-over-year increase of 4.1% and an EPS of $4.28 compared to $3.79 a year ago, exceeding Zacks Consensus Estimates [1] - The company achieved a revenue surprise of +0.27% and an EPS surprise of +5.94% compared to consensus estimates [1] Financial Performance Metrics - Efficiency Ratio was 55.2%, better than the estimated 56.2% [4] - Net charge-offs to average total net loans stood at 0.3%, lower than the estimated 0.4% [4] - Net interest margin was 3.6%, slightly below the estimated 3.7% [4] - Average Balance of Total earning assets was $190.54 billion, compared to the estimated $191.75 billion [4] - Tier 1 Capital Ratio was 12.5%, below the estimated 13% [4] - Total Capital Ratio was 14%, compared to the estimated 14.6% [4] - Total other income reached $683 million, exceeding the estimated $640.96 million [4] - Net interest income - taxable-equivalent was $1.72 billion, below the estimated $1.76 billion [4] - Service charges on deposit accounts were $137 million, slightly above the estimated $135.87 million [4] - Trust income was $182 million, close to the estimated $182.67 million [4] - Mortgage banking revenues were $130 million, slightly above the estimated $128.02 million [4] - Net Interest Income was $1.71 billion, compared to the estimated $1.75 billion [4] Stock Performance - M&T Bank shares returned +10.6% over the past month, outperforming the Zacks S&P 500 composite's +4.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Earnings Release Summary [Q2 2025 Earnings Highlights](index=1&type=section&id=Q2%202025%20Earnings%20Highlights) M&T Bank reported strong Q2 2025 earnings with net income of $716 million and diluted EPS of $4.24, driven by stable NII and higher noninterest income | (Dollars in millions, except per share data) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Net income | $716 | $584 | $655 | | Net income available to common shareholders - diluted | $679 | $547 | $626 | | Diluted earnings per common share | $4.24 | $3.32 | $3.73 | | Net interest income | $1,713 | $1,695 | $1,718 | | Noninterest income | $683 | $611 | $584 | | Noninterest expense | $1,336 | $1,415 | $1,297 | | Return on average assets - annualized | 1.37 % | 1.14 % | 1.24 % | | Return on average common shareholders' equity - annualized | 10.39 % | 8.36 % | 9.95 % | | CET1 capital ratio (estimated) | 10.98 % | 11.50 % | 11.45 % | - M&T significantly increased its share repurchase activity, buying back **6.1 million shares** for **$1.1 billion** in Q2 2025, compared to **3.4 million shares** for **$662 million** in Q1 2025[5](index=5&type=chunk) - The Common Equity Tier 1 (CET1) capital ratio decreased by **52 basis points** to an estimated **10.98%** at the end of Q2 2025, primarily reflecting the accelerated share repurchases[5](index=5&type=chunk) [CFO Commentary](index=1&type=section&id=CFO%20Commentary) CFO Daryl N. Bible emphasized consistent profitability, significant capital returns, reduced stress capital buffer, and prudent risk management - The CFO highlighted that **consistent profitability** supported **significant capital return** to shareholders[3](index=3&type=chunk) - A key positive development was the **reduction of M&T's stress capital buffer**, reinforcing the bank's financial strength[3](index=3&type=chunk) - The bank remains focused on **prudent risk management** and **active community involvement**[3](index=3&type=chunk) Financial Performance Analysis [Taxable-equivalent Net Interest Income](index=3&type=section&id=Taxable-equivalent%20Net%20Interest%20Income) Taxable-equivalent net interest income increased 1% QoQ to $1,722 million, driven by asset repricing and lower hedging costs, with a slight NIM decrease | (Dollars in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Average earning assets | $190,535 | $189,116 | $193,676 | | Net interest income - taxable-equivalent | $1,722 | $1,707 | $1,731 | | Net interest margin | 3.62% | 3.66% | 3.59% | - QoQ NII increased by **$15 million**, or **1%**, driven by an extra day of earnings, favorable asset repricing, and lower negative impact from interest rate swaps, partially offset by a **$20 million** reduction in interest income due to an alignment of amortization periods for certain municipal bonds[5](index=5&type=chunk)[8](index=8&type=chunk) - YoY NII decreased by **$9 million**, or **1%**[9](index=9&type=chunk) [Average Earning Assets](index=4&type=section&id=Average%20Earning%20Assets) Average earning assets grew 1% QoQ to $190.5 billion, driven by consumer and residential real estate loans, partially offset by a 2% YoY decrease | (Dollars in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | **Total earning assets** | **$190,535** | **$189,116** | **$193,676** | | Interest-bearing deposits at banks | $19,698 | $19,695 | $29,294 | | Investment securities | $35,335 | $34,480 | $29,695 | | Total loans | $135,407 | $134,844 | $134,588 | - QoQ average loans increased by **$563 million**, driven by higher consumer and residential real estate loans, partially offset by a decline in commercial real estate loans, which included the sale of a loan portfolio[13](index=13&type=chunk) - YoY average loans increased by **$819 million**, reflecting growth in commercial & industrial (**+$2.9 billion**) and consumer loans (**+$3.4 billion**), which was largely offset by a **$6.1 billion** decline in commercial real estate loans[13](index=13&type=chunk) [Average Interest-bearing Liabilities](index=5&type=section&id=Average%20Interest-bearing%20Liabilities) Average interest-bearing liabilities increased 2% QoQ to $132.5 billion, driven by growth in savings and interest-checking deposits, remaining flat YoY | (Dollars in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | **Total interest-bearing liabilities** | **$132,516** | **$129,938** | **$132,209** | | Total interest-bearing deposits | $118,253 | $115,784 | $115,757 | | Short-term borrowings | $3,327 | $2,869 | $4,962 | | Long-term borrowings | $10,936 | $11,285 | $11,490 | - QoQ, average interest-bearing liabilities increased by **$2.6 billion**, reflecting growth in savings and interest-checking deposits[14](index=14&type=chunk) - YoY, average interest-bearing deposits rose **$2.5 billion**, while average borrowings decreased **$2.2 billion**[15](index=15&type=chunk) [Provision for Credit Losses/Asset Quality](index=6&type=section&id=Provision%20for%20Credit%20Losses%2FAsset%20Quality) Provision for credit losses decreased to $125 million in Q2 2025, reflecting improved asset quality with lower loan loss allowance and reduced nonaccrual loans | (Dollars in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | Total provision for credit losses | $125 | $130 | $150 | | Net charge-offs | $108 | $114 | $137 | | Nonaccrual loans | $1,573 | $1,540 | $2,024 | | Allowance for loan losses as % of loans | 1.61% | 1.63% | 1.63% | | Net charge-offs as % of average loans | 0.32% | 0.34% | 0.41% | - The allowance for loan losses as a percentage of loans outstanding decreased to **1.61%** at June 30, 2025, from **1.63%** at March 31, 2025, reflecting lower levels of criticized commercial real estate loans[17](index=17&type=chunk) - Nonaccrual loans decreased significantly to **$1.6 billion** at June 30, 2025, compared to **$2.0 billion** at June 30, 2024, predominantly due to decreases in commercial real estate nonaccrual loans[18](index=18&type=chunk) [Noninterest Income](index=7&type=section&id=Noninterest%20Income) Noninterest income significantly increased to $683 million in Q2 2025, up 12% QoQ and 17% YoY, driven by mortgage banking, trust income, and sales gains | (Dollars in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | **Total Noninterest Income** | **$683** | **$611** | **$584** | | Mortgage banking revenues | $130 | $118 | $106 | | Service charges on deposit accounts | $137 | $133 | $127 | | Trust income | $182 | $177 | $170 | | Other revenues from operations | $191 | $142 | $152 | - QoQ, other revenues from operations increased by **$49 million**, which included a **$15 million** gain on the sale of a loan portfolio and a **$10 million** gain on the sale of a subsidiary[22](index=22&type=chunk) - YoY, noninterest income rose **$99 million** (**17%**), with mortgage banking revenues up **$24 million**, service charges up **$10 million**, and trust income up **$12 million**[20](index=20&type=chunk)[22](index=22&type=chunk) [Noninterest Expense](index=8&type=section&id=Noninterest%20Expense) Noninterest expense decreased 6% QoQ to $1,336 million due to lower salaries, while increasing 3% YoY from higher staffing and software costs, improving efficiency | (Dollars in millions) | 2Q25 | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | **Total Noninterest Expense** | **$1,336** | **$1,415** | **$1,297** | | Salaries and employee benefits | $813 | $887 | $764 | | Outside data processing and software | $138 | $136 | $124 | | FDIC assessments | $22 | $23 | $37 | - QoQ expenses decreased by **$79 million**, mainly due to a **$74 million** drop in salaries and benefits expense, which reflected seasonally higher costs (stock-based compensation, payroll taxes) in Q1[23](index=23&type=chunk) - YoY expenses increased by **$39 million**, driven by a **$49 million** rise in salaries and benefits and a **$14 million** increase in software costs, partially offset by lower FDIC assessments[24](index=24&type=chunk)[29](index=29&type=chunk) Capital Management [Capital Ratios and Share Repurchases](index=8&type=section&id=Capital%20Ratios%20and%20Share%20Repurchases) M&T's CET1 ratio declined to 10.98% due to $1.1 billion in share repurchases, but capital flexibility is enhanced by a reduced stress capital buffer | Capital Ratios | 2Q25 (Est.) | 1Q25 | 2Q24 | | :--- | :--- | :--- | :--- | | CET1 | 10.98% | 11.50% | 11.45% | | Tier 1 capital | 12.50% | 13.04% | 13.23% | | Total capital | 13.96% | 14.50% | 14.88% | - M&T repurchased **6,073,957 shares** of common stock for a total cost of **$1.1 billion** during Q2 2025[30](index=30&type=chunk) - Based on recent supervisory stress test results, M&T's stress capital buffer is estimated to decrease from **3.8%** to **2.7%** effective October 1, 2025[27](index=27&type=chunk) Financial Statements [Financial Highlights](index=11&type=section&id=Financial%20Highlights) This section presents M&T's financial performance via YoY and five-quarter trends, highlighting solid net income and EPS growth, and a strong Q2 2025 rebound Financial Highlights (YTD and YoY Comparison) | (Dollars in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $716 | $655 | $1,300 | $1,186 | | Diluted earnings per common share | $4.24 | $3.73 | $7.55 | $6.76 | | Return on average total assets | 1.37% | 1.24% | 1.25% | 1.13% | | Return on average common equity | 10.39% | 9.95% | 9.37% | 9.05% | Financial Highlights (Five Quarter Trend) | (Dollars in millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $716 | $584 | $681 | $721 | $655 | | Diluted earnings per common share | $4.24 | $3.32 | $3.86 | $4.02 | $3.73 | | Net interest margin | 3.62% | 3.66% | 3.58% | 3.62% | 3.59% | | Efficiency ratio | 55.2% | 60.5% | 56.8% | 55.0% | 55.3% | [Condensed Consolidated Statement of Income](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Income) M&T's Q2 2025 income statement shows stable net interest income, a 17% decrease in provision for credit losses, and a 17% increase in other income, driving a 9% net income rise Condensed Consolidated Statement of Income (YoY) | (Dollars in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Net interest income | $1,713 | $1,718 | —% | | Provision for credit losses | $125 | $150 | -17% | | Total other income | $683 | $584 | 17% | | Total other expense | $1,336 | $1,297 | 3% | | **Net income** | **$716** | **$655** | **9%** | [Condensed Consolidated Balance Sheet](index=15&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) M&T's total assets reached $211.6 billion as of June 30, 2025, driven by increased investment securities and net loans, funded by 3% growth in total deposits Condensed Consolidated Balance Sheet (YoY) | (Dollars in millions) | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Investment securities | $35,568 | $29,894 | 19% | | Net loans | $133,919 | $132,798 | 1% | | **Total assets** | **$211,584** | **$208,855** | **1%** | | **LIABILITIES AND EQUITY** | | | | | Total deposits | $164,453 | $159,910 | 3% | | Total borrowings | $14,451 | $16,083 | -10% | | Total shareholders' equity | $28,525 | $28,424 | —% | [Condensed Consolidated Average Balance Sheet](index=17&type=section&id=Condensed%20Consolidated%20Average%20Balance%20Sheet) This schedule details average balances and annualized rates for interest-earning assets and liabilities, showing a Q2 2025 net interest spread of 2.80% and margin of 3.62% Average Balances and Rates (Q2 2025) | (Dollars in millions) | Balance | Rate | | :--- | :--- | :--- | | Total earning assets | $190,535 | 5.51% | | Total interest-bearing liabilities | $132,516 | 2.71% | | Net interest spread | | 2.80% | | Net interest margin | | 3.62% | Reconciliation of GAAP to Non-GAAP Measures M&T presents non-GAAP measures, including net operating income of $724 million and 15.54% return on average tangible common equity, for core operational insights - Management uses **non-GAAP measures** like "**net operating**" or "**tangible**" results, which exclude the after-tax effects of amortization of intangible assets and merger-related expenses, to assess **core performance**[7](index=7&type=chunk) Key Non-GAAP Measures (Q2 2025 vs Q2 2024) | (Dollars in millions, except per share data) | 2Q25 | 2Q24 | | :--- | :--- | :--- | | Net operating income | $724 | $665 | | Diluted net operating earnings per common share | $4.28 | $3.79 | | Annualized return on average tangible common equity | 15.54% | 15.27% | | Efficiency ratio | 55.2% | 55.3% | | Tangible equity per common share | $112.48 | $102.42 | - The detailed reconciliation tables show the **specific adjustments** made to GAAP figures, such as adding back amortization of core deposit and other intangible assets to calculate **net operating income** and **noninterest operating expense**[50](index=50&type=chunk)[51](index=51&type=chunk) Other Information [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) M&T will host an investor conference call on July 16, 2025, at 11:00 a.m. ET to discuss Q2 financial results, with dial-in and webcast details - An investor conference call to discuss Q2 results is scheduled for **11:00 a.m. Eastern Time** on **July 16, 2025**, with dial-in and webcast information provided for participation[31](index=31&type=chunk) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to various risks and uncertainties, including economic and regulatory changes, detailed in SEC filings - The report contains **forward-looking statements** subject to **risks and uncertainties** that could cause actual results to differ materially[34](index=34&type=chunk)[35](index=35&type=chunk) - A non-exhaustive list of important risk factors includes **economic conditions**, **interest rate changes**, **competition**, and **regulatory changes**[37](index=37&type=chunk) - M&T directs stakeholders to its **Form 10-K** for a more detailed description of risks and uncertainties and states it has no duty to update forward-looking statements[39](index=39&type=chunk)

Core Viewpoint - M&T Bank Corporation reported a strong financial performance for the second quarter of 2025, with a net income of $716 million, or $4.24 per diluted share, reflecting a 9% increase compared to the same quarter in 2024 [1][44]. Financial Performance - Net interest income for 2Q25 was $1,713 million, slightly up from $1,695 million in 1Q25 but down from $1,718 million in 2Q24 [2]. - Noninterest income increased to $683 million in 2Q25, a 12% rise from $611 million in 1Q25 and a 17% increase from $584 million in 2Q24 [21][23]. - Noninterest expense decreased to $1,336 million in 2Q25 from $1,415 million in 1Q25, but increased from $1,297 million in 2Q24 [27][28]. Asset Quality - The provision for credit losses was $125 million in 2Q25, down from $130 million in 1Q25 and $150 million in 2Q24, indicating improved asset quality [19][44]. - Nonaccrual loans decreased to $1.573 billion in 2Q25 from $2.024 billion in 2Q24, reflecting a 22% improvement [20][44]. Capital Management - M&T repurchased 6,073,957 shares of common stock for a total cost of $1.1 billion in 2Q25, compared to 3,415,303 shares for $662 million in 1Q25 [33]. - The Common Equity Tier 1 (CET1) capital ratio was estimated at 10.98% as of June 30, 2025, down from 11.50% at the end of 1Q25 [30][32]. Efficiency and Returns - The efficiency ratio improved to 55.2% in 2Q25 from 60.5% in 1Q25, indicating better cost management [2][27]. - Return on average assets was 1.37% in 2Q25, up from 1.14% in 1Q25, while return on average common shareholders' equity was 10.39%, an increase from 8.36% in 1Q25 [2][44].