M&T Bank (MTB) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $664 million, up 14% year-over-year, with diluted EPS of $4.13, a 24% increase from Q1 2025, though down sequentially from Q4 2025.

• Net interest margin expanded to 3.71%, reflecting lower funding costs and improved returns on assets and equity.

• Noninterest income increased 13% year-over-year, driven by higher trust income, service charges, and a $33 million investment distribution.

• Strong capital return with $1.25 billion in share repurchases and $267 million in dividends declared.

• Successfully converted core general ledger platform, supporting operational excellence and growth.

Financial highlights

• Net interest income (taxable-equivalent) rose 3% year-over-year to $1.76 billion, but declined 2% sequentially.

• Noninterest income totaled $689 million, with mortgage banking revenues at $127 million.

• Provision for credit losses was $140 million, up from $130 million a year ago, reflecting higher provision for unfunded commitments and global conflict risks.

• Efficiency ratio was 58.3%, up from 55.1% in Q4 2025 but improved from 60.5% in Q1 2025.

• Return on average assets was 1.26% and return on average common equity was 9.67%.

Outlook and guidance

• Full-year net interest income expected between $7.2 and $7.35 billion, trending toward the lower half of the range.

• Net interest margin expected in the high 360s basis points.

• Fee income projected at $2.675 to $2.775 billion, and GAAP expenses at $5.5 to $5.6 billion.

• CET1 capital ratio targeted at 10.0% to 10.5%, expected to move to the bottom end of 10% as asset quality improves.

• Loans expected to grow to $140–$142 billion and deposits to $165–$167 billion.