M&T Bank Corporation (NYSE:MTB) announces fourth quarter and full-year 2025 results

Core Viewpoint - M&T Bank Corporation reported strong financial performance for the fourth quarter and full year of 2025, with significant increases in net income and diluted earnings per share, alongside improvements in asset quality and operational efficiency [1][5]. Financial Performance - The company achieved a quarterly net income of $759 million, translating to diluted earnings of $4.67 per common share, and a full-year net income of $2.85 billion, or $17.00 per share, marking a 16% increase in diluted earnings per share year-over-year [1][44]. - For the fourth quarter of 2025, net interest income was $1.79 billion, up 1% from the previous quarter and 3% from the same quarter in 2024 [2][12]. - Noninterest income for the fourth quarter was $696 million, a decrease of 7% from the third quarter but an increase of 6% compared to the fourth quarter of 2024 [21][22]. Asset Quality - Nonaccrual loans decreased to $1.25 billion, down 17% from the previous quarter and 26% from the same quarter in 2024, indicating improved asset quality [20][45]. - The allowance for loan losses as a percentage of total loans declined to 1.53% at the end of 2025, reflecting a reduction in criticized loans [19][45]. Capital and Liquidity - The Common Equity Tier 1 (CET1) capital ratio was estimated at 10.84% as of December 31, 2025, remaining well above regulatory requirements [30][31]. - The company repurchased 2.7 million shares during the fourth quarter at an average cost of $183.30 per share, reflecting a commitment to returning capital to shareholders [32]. Operational Efficiency - The efficiency ratio improved to 55.1% in the fourth quarter of 2025, down from 56.8% in the same quarter of the previous year, indicating better cost management [2][44]. - Noninterest expenses for the full year increased by 2% to $5.49 billion, driven by higher salaries and employee benefits, but were partially offset by lower FDIC assessment expenses [28][27]. Dividend and Shareholder Returns - The company increased its quarterly dividend by 11% in 2025, reflecting a commitment to returning value to shareholders [7].