M&T Bank Reports Strong Q4 2025 Results Amid Resilient Loan Growth and Margin Expansion

M&T Bank delivered a robust performance in the fourth quarter of 2025, reporting net income of $437 million, or $2.81 per diluted share, on a non-GAAP basis. This marked a 7% year-over-year increase in earnings, driven by continued growth in loan originations and a 25 basis point improvement in the net interest margin to 3.58%. The bank’s total loans rose to $138.9 billion, up 6% compared to the prior-year quarter, with commercial and industrial lending showing the strongest momentum at 11% growth. The results underscore M&T Bank’s ability to maintain profitability in a challenging rate environment. Non-interest income totaled $315 million, supported by fee-based revenue, particularly in wealth management and deposit services. The bank’s credit quality remained stable, with the non-performing loan ratio holding at 0.51%, consistent with the previous quarter and slightly better than the 0.62% level reported in Q4 2024. Provision for credit losses was $46 million, reflecting cautious underwriting in a rising rate environment. Total deposits grew by $3.2 billion during the quarter, reaching $134.1 billion, with core deposits accounting for 78% of the total. The bank’s return on equity for the quarter reached 12.3%, while tangible book value per share increased to $70.25, up 5% from Q3 2025. Management reaffirmed its full-year 2026 guidance, projecting adjusted EPS growth in the mid-single digits and continued margin improvement. The performance was widely welcomed by investors, with M&T Bank’s stock closing at $112.40 on January 15, 2026, up 3.2% on the day. Analysts noted the bank’s disciplined balance sheet management and diversified revenue streams as key differentiators in the current economic climate. The results also highlight M&T’s resilience relative to peers facing higher credit costs and slower loan growth.