M&T Bank Corporation (NYSE:MTB) announces third quarter 2025 results
M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $792 million or $4.82 of diluted earnings per common share.
(Dollars in millions, except per share data)
3Q25
2Q25
3Q24
Earnings Highlights
Net interest income
$
1,761
$
1,713
$
1,726
Taxable-equivalent adjustment
12
9
13
Net interest income - taxable-equivalent
1,773
1,722
1,739
Provision for credit losses
125
125
120
Noninterest income
752
683
606
Noninterest expense
1,363
1,336
1,303
Net income
792
716
721
Net income available to common shareholders - diluted
754
679
674
Diluted earnings per common share
4.82
4.24
4.02
Return on average assets - annualized
1.49
%
1.37
%
1.37
%
Return on average common shareholders' equity - annualized
11.45
10.39
10.26
Average Balance Sheet
Total assets
$
211,053
$
210,261
$
209,581
Interest-bearing deposits at banks
17,739
19,698
25,491
Investment securities
36,559
35,335
31,023
Loans
136,527
135,407
134,751
Deposits
162,706
163,406
161,505
Borrowings
15,633
14,263
15,428
Selected Ratios
(Amounts expressed as a percent, except per share data)
Net interest margin
3.68
%
3.62
%
3.62
%
Efficiency ratio (1)
53.6
55.2
55.0
Net charge-offs to average total loans - annualized
.42
.32
.35
Allowance for loan losses to total loans
1.58
1.61
1.62
Nonaccrual loans to total loans
1.10
1.16
1.42
Common equity Tier 1 ("CET1") capital ratio (2)
10.99
10.99
11.54
Common shareholders' equity per share
$
170.43
$
166.94
$
159.38
(1) A reconciliation of non-GAAP measures is included in the tables that accompany this release.
(2) CET1 capital ratio at September 30, 2025 is estimated.
Financial Highlights
•Taxable-equivalent net interest income increased $51 million in the recent quarter as compared with the second quarter of 2025 reflecting an additional day of earnings, favorable earning asset and interest-bearing liability repricing and the impact of $20 million of lower taxable-equivalent interest income in the second quarter of 2025 resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People’s United Financial, Inc.
•Average loans in the recent quarter reflect higher average balances of commercial and industrial, consumer and residential real estate loans, partially offset by a lower average balance of commercial real estate loans.
•Higher noninterest income reflects a distribution of an earnout payment of $28 million related to the Company's 2023 sale of its Collective Investment Trust ("CIT") business, a $20 million distribution from M&T's investment in Bayview Lending Group LLC ("BLG"), higher mortgage banking revenues and a gain on the sale of equipment leases, partially offset by gains on the sales of an out-of-footprint loan portfolio of $15 million and a subsidiary that specialized in institutional services of $10 million each in the second quarter of 2025.
•The increase in noninterest expense was primarily attributed to higher severance-related expense, an impairment of a renewable energy tax credit investment and a rise in expenses associated with the Company's supplemental executive retirement savings plan.
•Reflecting improved asset quality, the allowance for loan losses as a percentage of total loans declined 3 basis points to 1.58% at September 30, 2025.
•M&T repurchased 2.1 million shares of its common stock during the recent quarter for a total cost of $409 million, compared with 6.1 million shares for a total cost of $1.1 billion in the second quarter of 2025. M&T's CET1 capital ratio is estimated to be 10.99% at September 30, 2025.
Chief Financial Officer Commentary
"M&T's businesses generated strong fee income in 2025 and contributed to M&T's earnings growth in the recent quarter. Our improved credit quality and loan growth each reflect the dedication of our teams to prudent lending in service of our customers and communities. We continued to return capital to our investors including an 11% increase in quarterly dividends on M&T's common stock. Our results are a reflection of M&T's commitment to finding solutions for a diverse customer base and making a difference in people's lives."
- Daryl N. Bible, M&T's Chief Financial Officer
Contact:
Investor Relations: Steve Wendelboe 716.842.5138
Media Relations: Frank Lentini 929.651.0447
Third Quarter 2025 Results
Non-GAAP Measures (1)
(Dollars in millions, except per share data)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
Net operating income
$
798
$
724
10
%
$
731
9
%
Diluted net operating earnings per common share
4.87
4.28
14
4.08
19
Annualized return on average tangible assets
1.56
%
1.44
%
1.45
%
Annualized return on average tangible common equity
17.13
15.54
15.47
Efficiency ratio
53.6
55.2
55.0
Tangible equity per common share
$
115.31
$
112.48
3
$
107.97
7
(1)A reconciliation of non-GAAP measures is included in the tables that accompany this release.
M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill and core deposit and other intangible asset balances, net of applicable deferred tax amounts) and expenses associated with merging acquired operations into M&T (when incurred), since such items are considered by management to be “nonoperating” in nature.
Taxable-equivalent Net Interest Income
(Dollars in millions)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
Average earning assets
$
190,920
$
190,535
—
%
$
191,366
—
%
Average interest-bearing liabilities
134,283
132,516
1
130,775
3
Net interest income - taxable-equivalent
1,773
1,722
3
1,739
2
Yield on average earning assets
5.59
%
5.51
%
5.82
%
Cost of interest-bearing liabilities
2.71
2.71
3.22
Net interest spread
2.88
2.80
2.60
Net interest margin
3.68
3.62
3.62
Taxable-equivalent net interest income increased $51 million in the recent quarter as compared with the second quarter of 2025 reflecting an additional day of earnings, favorable earning asset and interest-bearing liability repricing and the impact of $20 million of lower taxable-equivalent interest income in the second quarter of 2025 resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People’s United Financial, Inc.
Taxable-equivalent net interest income increased $34 million as compared with the year-earlier third quarter reflecting favorable earning asset and interest-bearing liability repricing as net interest spread widened 28 basis points.
2
Third Quarter 2025 Results
Average Earning Assets
(Dollars in millions)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
Interest-bearing deposits at banks
$
17,739
$
19,698
-10
%
$
25,491
-30
%
Trading account
95
95
—
101
-6
Investment securities
36,559
35,335
3
31,023
18
Loans
Commercial and industrial
61,716
61,036
1
59,779
3
Real estate - commercial
24,353
25,333
-4
29,075
-16
Real estate - residential
24,359
23,684
3
22,994
6
Consumer
26,099
25,354
3
22,903
14
Total loans
136,527
135,407
1
134,751
1
Total earning assets
$
190,920
$
190,535
—
$
191,366
—
Average earning assets increased $385 million from the second quarter of 2025 reflecting purchases of investment securities and net loan fundings, partially offset by lower interest-bearing deposits at banks. Growth in commercial and industrial loans, primarily in loans to the financial and insurance industry, residential real estate loans and consumer loans, predominantly recreational finance loans, contributed to the increase in average loans in the recent quarter. Partially offsetting that loan growth was a decline in average commercial real estate loans of $980 million, reflecting payoffs and the full-quarter impact of the sale of an out-of-footprint residential builder and developer loan portfolio.
Average earning assets decreased $446 million from the third quarter of 2024. Average interest-bearing deposits at banks decreased $7.8 billion reflecting purchases of investment securities and loan growth, partially offset by higher average deposit balances. Average loan increases resulted from higher average commercial and industrial loans of $1.9 billion, reflecting growth in loans to the financial and insurance industry, an increase in average residential real estate loans of $1.4 billion, and higher average consumer loans of $3.2 billion, reflecting a rise in average balances of recreational finance and automobile loans. Partially offsetting those increases was a $4.7 billion decline in average commercial real estate loans.
3
Third Quarter 2025 Results
Average Interest-bearing Liabilities
(Dollars in millions)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
Interest-bearing deposits
Savings and interest-checking deposits
$
104,660
$
103,963
1
%
$
98,295
6
%
Time deposits
13,990
14,290
-2
17,052
-18
Total interest-bearing deposits
118,650
118,253
—
115,347
3
Short-term borrowings
2,844
3,327
-15
4,034
-30
Long-term borrowings
12,789
10,936
17
11,394
12
Total interest-bearing liabilities
$
134,283
$
132,516
1
$
130,775
3
Average interest-bearing liabilities rose $1.8 billion from the second quarter of 2025. Higher average borrowings resulted from issuances of senior notes in the second quarter of 2025 and subordinated notes in the recent quarter, partially offset by lower average short-term borrowings from the FHLB of New York.
Average interest-bearing liabilities increased $3.5 billion from the third quarter of 2024, largely attributable to a $3.6 billion increase in non-brokered interest-bearing deposits. Average borrowings increased $205 million reflecting higher average long-term borrowings from issuances of senior and subordinated notes and other long-term debt since the third quarter of 2024, partially offset by lower average short-term and long-term borrowings from the FHLB of New York.
4
Third Quarter 2025 Results
Provision for Credit Losses/Asset Quality
(Dollars in millions)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
At end of quarter
Nonaccrual loans
$
1,512
$
1,573
-4
%
$
1,926
-21
%
Real estate and other foreclosed assets
37
30
23
37
—
Total nonperforming assets
1,549
1,603
-3
1,963
-21
Accruing loans past due 90 days or more (1)
432
496
-13
288
50
Nonaccrual loans as % of loans outstanding
1.10
%
1.16
%
1.42
%
Allowance for loan losses
$
2,161
$
2,197
-2
$
2,204
-2
Allowance for loan losses as % of loans outstanding
1.58
%
1.61
%
1.62
%
Reserve for unfunded credit commitments
$
95
$
80
19
$
60
59
For the period
Provision for loan losses
$
110
$
105
5
$
120
-8
Provision for unfunded credit commitments
15
20
-25
—
100
Total provision for credit losses
125
125
—
120
4
Net charge-offs
146
108
34
120
21
Net charge-offs as % of average loans (annualized)
.42
%
.32
%
.35
%
(1)Predominantly government-guaranteed residential real estate loans.
The provision for credit losses was $125 million in each of the third and second quarters of 2025, compared with $120 million in the third quarter of 2024. The allowance for loan losses as a percentage of loans outstanding decreased from 1.61% at June 30, 2025 to 1.58% at September 30, 2025 reflecting lower levels of criticized commercial real estate loans. Net charge-offs totaled $146 million in 2025's third quarter as compared with $108 million in 2025's second quarter and $120 million in the year-earlier third quarter, representing .42%, .32% and .35%, respectively, of average loans outstanding.
Nonaccrual loans were $1.5 billion at September 30, 2025, compared with $1.6 billion at June 30, 2025 and $1.9 billion at September 30, 2024. The lower level of nonaccrual loans at the two most recent quarter ends as compared with September 30, 2024 predominantly reflects decreases in commercial real estate, commercial and industrial and consumer nonaccrual loans.
5
Third Quarter 2025 Results
Noninterest Income
(Dollars in millions)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
Mortgage banking revenues
$
147
$
130
13
%
$
109
36
%
Service charges on deposit accounts
141
137
2
132
7
Trust income
181
182
-1
170
7
Brokerage services income
34
31
9
32
9
Trading account and other non-hedging derivative gains
18
12
66
13
34
Gain (loss) on bank investment securities
1
—
—
(2)
—
Other revenues from operations
230
191
21
152
50
Total
$
752
$
683
10
$
606
24
Noninterest income in the third quarter of 2025 increased $69 million, or 10%, from 2025's second quarter.
•Mortgage banking revenues rose $17 million reflecting an increase in residential mortgage loan servicing income and higher gains on sales of commercial mortgage loans.
•Trading account and other non-hedging derivative gains increased $6 million reflecting an increase in revenues from interest swap transactions with commercial customers.
•Other revenues from operations increased $39 million reflecting a $28 million distribution of an earnout payment related to the Company's 2023 sale of its CIT business, a $20 million distribution from M&T's investment in BLG and a $12 million gain on the sale of equipment leases in the recent quarter, partially offset by a $15 million gain on the sale of an out-of-footprint residential builder and developer loan portfolio and a $10 million gain on the sale of a subsidiary that specialized in institutional services each in the second quarter of 2025.
Noninterest income rose $146 million, or 24%, as compared with the third quarter of 2024.
•Mortgage banking revenues rose $38 million predominantly due to increased residential mortgage loan servicing income.
•Service charges on deposit accounts increased $9 million reflecting higher commercial service charges.
•Trust income rose $11 million reflecting higher revenues from the Company's global capital markets and wealth advisory services businesses.
•Other revenues from operations increased $78 million reflecting a $28 million distribution of an earnout payment related to the Company's 2023 sale of its CIT business, a $20 million distribution from M&T's investment in BLG and a $12 million gain on the sale of equipment leases in the recent quarter. Also contributing to the increase was higher merchant discount and credit card fees, letter of credit and other credit-related fees and tax-exempt income from bank owned life insurance.
6
Third Quarter 2025 Results
Noninterest Expense
(Dollars in millions)
3Q25
2Q25
Change 3Q25 vs. 2Q25
3Q24
Change 3Q25 vs. 3Q24
Salaries and employee benefits
$
833
$
813
2
%
$
775
8
%
Equipment and net occupancy
129
130
—
125
4
Outside data processing and software
138
138
—
123
12
Professional and other services
81
86
-7
88
-8
FDIC assessments
13
22
-41
25
-50
Advertising and marketing
23
25
-8
27
-15
Amortization of core deposit and other intangible assets
10
9
—
12
-24
Other costs of operations
136
113
21
128
6
Total
$
1,363
$
1,336
2
$
1,303
5
Noninterest expense rose $27 million, or 2%, from the second quarter of 2025.
•Salaries and employee benefits expense increased $20 million reflecting higher severance-related expense in the recent quarter.
•FDIC assessments decreased $9 million reflecting the recent quarter reduction of estimated special assessment expense resulting from a decrease in the FDIC's loss estimates associated with certain failed banks.
•Other costs of operations increased $23 million reflecting higher expense associated with the Company's supplemental executive retirement savings plan due to market performance and an impairment of a renewable energy tax credit investment.
Noninterest expense increased $60 million, or 5%, from the third quarter of 2024.
•Salaries and employee benefits expense increased $58 million reflecting higher expenses from annual merit and other increases, a rise in average employee staffing levels and an increase in severance-related costs and medical benefits expenses.
•Outside data processing and software costs rose $15 million reflecting costs associated with enhancements to the Company's technology infrastructure, cybersecurity and financial recordkeeping and reporting systems.
•FDIC assessments declined $12 million reflecting the recent quarter reduction of estimated FDIC special assessment expense and improved asset quality.
•Other costs of operations increased $8 million reflecting the recent quarter impairment of a renewable energy tax credit investment.
Income Taxes
The Company's effective income tax rate was 22.8% in the third quarter of 2025, compared with 23.4% and 20.7% in the second quarter of 2025 and the third quarter of 2024, respectively. The year-earlier third quarter income tax expense reflects a discrete tax benefit related to certain tax credits claimed on a prior year tax return.
7
Third Quarter 2025 Results
Capital and Liquidity
3Q25
2Q25
3Q24
CET1
10.99
%
(1)
10.99
%
11.54
%
Tier 1 capital
12.49
(1)
12.50
13.08
Total capital
14.35
(1)
13.96
14.65
Tangible capital – common
8.79
8.67
8.83
(1)Capital ratios at September 30, 2025 are estimated.
M&T's capital ratios remained well above the minimum set forth by regulatory requirements. Cash dividends declared on M&T's common and preferred stock totaled $234 million and $36 million, respectively, for the quarter ended September 30, 2025. In June 2025, the Federal Reserve released the results of its most recent supervisory stress tests, in which M&T elected to participate. Based on those results, on October 1, 2025, M&T's stress capital buffer of 2.7% became effective.
The CET1 capital ratio for M&T was estimated at 10.99% as of September 30, 2025. M&T's total risk-weighted assets at September 30, 2025 are estimated to be $159.5 billion.
M&T repurchased 2.1 million shares of its common stock in accordance with its capital plan during the recent quarter at an average cost per share of $193.46 resulting in a total cost, including the share repurchase excise tax, of $409 million, compared with 6.1 million and 1.2 million shares at an average cost per share of $175.93 and $166.40 and a total cost, including the share repurchase excise tax, of $1.1 billion and $200 million in the second quarter of 2025 and the third quarter of 2024, respectively. Reflecting lower levels of share repurchases in the recent quarter M&T's tangible common equity to tangible asset ratio increased 12 basis points compared with June 30, 2025.
While not subject to the liquidity coverage ratio requirements ("LCR"), M&T estimates that its LCR on September 30, 2025 was 108%, exceeding the regulatory minimum standards that would be applicable if it were a Category III institution subject to the Category III reduced LCR requirements.
Conference Call
Investors will have an opportunity to listen to M&T's conference call to discuss third quarter financial results today at 11:00 a.m. Eastern Time. Those wishing to participate in the call may dial (800) 347-7315. International participants, using any applicable international calling codes, may dial (785) 424-1755. Callers should reference M&T Bank Corporation or the conference ID #MTBQ325. The conference call will be webcast live through M&T's website at https://ir.mtb.com/news-events/events-presentations. A replay of the call will be available through Thursday October 23, 2025, by calling (800) 723-0488 or (402) 220-2651 for international participants. No conference ID or passcode is required. The event will also be archived and available by 3:00 p.m. today on M&T's website at https://ir.mtb.com/news-events/events-presentations.
About M&T
M&T is a financial holding company headquartered in Buffalo, New York. M&T's principal banking subsidiary, M&T Bank, provides banking products and services with a branch and ATM network spanning the eastern U.S. from Maine to Virginia and Washington, D.C. Trust-related services are provided in select markets in the U.S. and abroad by M&T's Wilmington Trust-affiliated companies and by M&T Bank. For more information on M&T Bank, visit www.mtb.com.
8
Third Quarter 2025 Results
Forward-Looking Statements
This news release and related conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about M&T's business, and management's beliefs and assumptions.
Statements regarding the potential effects of events or factors specific to M&T and/or the financial industry as a whole, as well as national and global events generally, on M&T's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond M&T's control.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted.
While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation: economic conditions and growth rates, including inflation and market volatility; events, developments and current conditions in the financial services industry, including trust, brokerage and investment management businesses; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in M&T's credit ratings; domestic or international political developments and other geopolitical events, including trade and tariff policies and international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-, brokerage-, and investment management-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the initiation and outcome of potential, pending and future litigation, investigations and governmental proceedings, including tax-related examinations and other matters; operational risk events, including loss resulting from fraud by employees or persons outside M&T and breaches in data and cybersecurity; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, and other factors.
M&T provides further detail regarding these risks and uncertainties in its Form 10-K for the year ended December 31, 2024, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and M&T assumes no duty and does not undertake to update forward-looking statements.
9
Third Quarter 2025 Results
Financial Highlights
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Dollars in millions, except per share, shares in thousands)
2025
2024
Change
2025
2024
Change
Performance
Net income
$
792
$
721
10
%
$
2,092
$
1,907
10
%
Net income available to common shareholders
754
674
12
1,981
1,805
10
Per common share:
Basic earnings
4.85
4.04
20
12.41
10.83
15
Diluted earnings
4.82
4.02
20
12.34
10.78
14
Cash dividends
1.50
1.35
11
4.20
4.00
5
Common shares outstanding:
Average - diluted (1)
156,553
167,567
-7
160,503
167,437
-4
Period end (2)
154,518
166,157
-7
154,518
166,157
-7
Return on (annualized):
Average total assets
1.49
%
1.37
%
1.33
%
1.21
%
Average common shareholders' equity
11.45
10.26
10.07
9.47
Taxable-equivalent net interest income
$
1,773
$
1,739
2
$
5,202
$
5,162
1
Yield on average earning assets
5.59
%
5.82
%
5.54
%
5.79
%
Cost of interest-bearing liabilities
2.71
3.22
2.71
3.24
Net interest spread
2.88
2.60
2.83
2.55
Contribution of interest-free funds
.80
1.02
.83
1.03
Net interest margin
3.68
3.62
3.66
3.58
Net charge-offs to average total net loans (annualized)
.42
.35
.36
.39
Net operating results (3)
Net operating income
$
798
$
731
9
$
2,116
$
1,939
9
Diluted net operating earnings per common share
4.87
4.08
19
12.49
10.97
14
Return on (annualized):
Average tangible assets
1.56
%
1.45
%
1.41
%
1.28
%
Average tangible common equity
17.13
15.47
15.07
14.51
Efficiency ratio
53.6
55.0
56.3
57.0
At September 30,
Loan quality
2025
2024
Change
Nonaccrual loans
$
1,512
$
1,926
-21
%
Real estate and other foreclosed assets
37
37
—
Total nonperforming assets
$
1,549
$
1,963
-21
Accruing loans past due 90 days or more (4)
$
432
$
288
50
Government guaranteed loans included in totals above:
Nonaccrual loans
$
71
$
69
4
Accruing loans past due 90 days or more
403
269
50
Nonaccrual loans to total loans
1.10
%
1.42
%
Allowance for loan losses to total loans
1.58
1.62
Additional information
Period end common stock price
$
197.62
$
178.12
11
Domestic banking offices
942
957
-2
Full time equivalent employees
22,383
21,986
2
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 17.
(4) Predominantly government-guaranteed residential real estate loans.
10
Third Quarter 2025 Results
Financial Highlights, Five Quarter Trend
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
(Dollars in millions, except per share, shares in thousands)
2025
2025
2025
2024
2024
Performance
Net income
$
792
$
716
$
584
$
681
$
721
Net income available to common shareholders
754
679
547
644
674
Per common share:
Basic earnings
4.85
4.26
3.33
3.88
4.04
Diluted earnings
4.82
4.24
3.32
3.86
4.02
Cash dividends
1.50
1.35
1.35
1.35
1.35
Common shares outstanding:
Average - diluted (1)
156,553
160,005
165,047
166,969
167,567
Period end (2)
154,518
156,532
162,552
165,526
166,157
Return on (annualized):
Average total assets
1.49
%
1.37
%
1.14
%
1.28
%
1.37
%
Average common shareholders' equity
11.45
10.39
8.36
9.75
10.26
Taxable-equivalent net interest income
$
1,773
$
1,722
$
1,707
$
1,740
$
1,739
Yield on average earning assets
5.59
%
5.51
%
5.52
%
5.60
%
5.82
%
Cost of interest-bearing liabilities
2.71
2.71
2.70
2.94
3.22
Net interest spread
2.88
2.80
2.82
2.66
2.60
Contribution of interest-free funds
.80
.82
.84
.92
1.02
Net interest margin
3.68
3.62
3.66
3.58
3.62
Net charge-offs to average total net loans (annualized)
.42
.32
.34
.47
.35
Net operating results (3)
Net operating income
$
798
$
724
$
594
$
691
$
731
Diluted net operating earnings per common share
4.87
4.28
3.38
3.92
4.08
Return on (annualized):
Average tangible assets
1.56
%
1.44
%
1.21
%
1.35
%
1.45
%
Average tangible common equity
17.13
15.54
12.53
14.66
15.47
Efficiency ratio
53.6
55.2
60.5
56.8
55.0
September 30,
June 30,
March 31,
December 31,
September 30,
Loan quality
2025
2025
2025
2024
2024
Nonaccrual loans
$
1,512
$
1,573
$
1,540
$
1,690
$
1,926
Real estate and other foreclosed assets
37
30
34
35
37
Total nonperforming assets
$
1,549
$
1,603
$
1,574
$
1,725
$
1,963
Accruing loans past due 90 days or more (4)
$
432
$
496
$
384
$
338
$
288
Government guaranteed loans included in totals above:
Nonaccrual loans
71
75
69
69
69
Accruing loans past due 90 days or more
403
450
368
318
269
Nonaccrual loans to total loans
1.10
%
1.16
%
1.14
%
1.25
%
1.42
%
Allowance for loan losses to total loans
1.58
1.61
1.63
1.61
1.62
Additional information
Period end common stock price
$
197.62
$
193.99
$
178.75
$
188.01
$
178.12
Domestic banking offices
942
941
955
955
957
Full time equivalent employees
22,383
22,590
22,291
22,101
21,986
(1) Includes common stock equivalents.
(2) Includes common stock issuable under deferred compensation plans.
(3) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. Reconciliations of net income with net operating income appear on page 18.
(4) Predominantly government-guaranteed residential real estate loans.
11
Third Quarter 2025 Results
Condensed Consolidated Statement of Income
Three Months Ended
Nine Months Ended
September 30,
September 30,
(Dollars in millions)
2025
2024
Change
2025
2024
Change
Interest income
$
2,680
$
2,785
-4
%
$
7,849
$
8,319
-6
%
Interest expense
919
1,059
-13
2,680
3,195
-16
Net interest income
1,761
1,726
2
5,169
5,124
1
Provision for credit losses
125
120
4
380
470
-19
Net interest income after provision for credit losses
1,636
1,606
2
4,789
4,654
3
Other income
Mortgage banking revenues
147
109
36
395
319
24
Service charges on deposit accounts
141
132
7
411
383
7
Trust income
181
170
7
540
500
8
Brokerage services income
34
32
9
97
91
7
Trading account and other non-hedging derivative gains
18
13
34
39
29
32
Gain (loss) on bank investment securities
1
(2)
—
1
(8)
—
Other revenues from operations
230
152
50
563
456
23
Total other income
752
606
24
2,046
1,770
16
Other expense
Salaries and employee benefits
833
775
8
2,533
2,372
7
Equipment and net occupancy
129
125
4
391
379
3
Outside data processing and software
138
123
12
412
367
12
Professional and other services
81
88
-8
251
264
-5
FDIC assessments
13
25
-50
58
122
-53
Advertising and marketing
23
27
-15
70
74
-6
Amortization of core deposit and other intangible assets
10
12
-24
32
40
-20
Other costs of operations
136
128
6
367
378
-3
Total other expense
1,363
1,303
5
4,114
3,996
3
Income before taxes
1,025
909
13
2,721
2,428
12
Income taxes
233
188
24
629
521
21
Net income
$
792
$
721
10
%
$
2,092
$
1,907
10
%
12
Third Quarter 2025 Results
Condensed Consolidated Statement of Income, Five Quarter Trend
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
(Dollars in millions)
2025
2025
2025
2024
2024
Interest income
$
2,680
$
2,609
$
2,560
$
2,707
$
2,785
Interest expense
919
896
865
979
1,059
Net interest income
1,761
1,713
1,695
1,728
1,726
Provision for credit losses
125
125
130
140
120
Net interest income after provision for credit losses
1,636
1,588
1,565
1,588
1,606
Other income
Mortgage banking revenues
147
130
118
117
109
Service charges on deposit accounts
141
137
133
131
132
Trust income
181
182
177
175
170
Brokerage services income
34
31
32
30
32
Trading account and other non-hedging derivative gains
18
12
9
10
13
Gain (loss) on bank investment securities
1
—
—
18
(2)
Other revenues from operations
230
191
142
176
152
Total other income
752
683
611
657
606
Other expense
Salaries and employee benefits
833
813
887
790
775
Equipment and net occupancy
129
130
132
133
125
Outside data processing and software
138
138
136
125
123
Professional and other services
81
86
84
80
88
FDIC assessments
13
22
23
24
25
Advertising and marketing
23
25
22
30
27
Amortization of core deposit and other intangible assets
10
9
13
13
12
Other costs of operations
136
113
118
168
128
Total other expense
1,363
1,336
1,415
1,363
1,303
Income before taxes
1,025
935
761
882
909
Income taxes
233
219
177
201
188
Net income
$
792
$
716
$
584
$
681
$
721
13
Third Quarter 2025 Results
Condensed Consolidated Balance Sheet
September 30,
(Dollars in millions)
2025
2024
Change
ASSETS
Cash and due from banks
$
1,950
$
2,216
-12
%
Interest-bearing deposits at banks
16,751
24,417
-31
Trading account
95
102
-7
Investment securities
36,864
32,327
14
Loans:
Commercial and industrial
61,887
61,012
1
Real estate - commercial
24,046
28,683
-16
Real estate - residential
24,662
23,019
7
Consumer
26,379
23,206
14
Total loans
136,974
135,920
1
Less: allowance for loan losses
2,161
2,204
-2
Net loans
134,813
133,716
1
Goodwill
8,465
8,465
—
Core deposit and other intangible assets
74
107
-31
Other assets
12,265
10,435
18
Total assets
$
211,277
$
211,785
—
%
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
44,994
$
47,344
-5
%
Interest-bearing deposits
118,432
117,210
1
Total deposits
163,426
164,554
-1
Short-term borrowings
2,059
2,605
-21
Long-term borrowings
12,928
11,583
12
Accrued interest and other liabilities
4,136
4,167
-1
Total liabilities
182,549
182,909
—
Shareholders' equity:
Preferred
2,394
2,394
—
Common
26,334
26,482
-1
Total shareholders' equity
28,728
28,876
-1
Total liabilities and shareholders' equity
$
211,277
$
211,785
—
%
14
Third Quarter 2025 Results
Condensed Consolidated Balance Sheet, Five Quarter Trend
September 30,
June 30,
March 31,
December 31,
September 30,
(Dollars in millions)
2025
2025
2025
2024
2024
ASSETS
Cash and due from banks
$
1,950
$
2,128
$
2,109
$
1,909
$
2,216
Interest-bearing deposits at banks
16,751
19,297
20,656
18,873
24,417
Trading account
95
93
96
101
102
Investment securities
36,864
35,568
35,137
34,051
32,327
Loans:
Commercial and industrial
61,887
61,660
60,596
61,481
61,012
Real estate - commercial
24,046
24,567
25,867
26,764
28,683
Real estate - residential
24,662
24,117
23,284
23,166
23,019
Consumer
26,379
25,772
24,827
24,170
23,206
Total loans
136,974
136,116
134,574
135,581
135,920
Less: allowance for loan losses
2,161
2,197
2,200
2,184
2,204
Net loans
134,813
133,919
132,374
133,397
133,716
Goodwill
8,465
8,465
8,465
8,465
8,465
Core deposit and other intangible assets
74
84
93
94
107
Other assets
12,265
12,030
11,391
11,215
10,435
Total assets
$
211,277
$
211,584
$
210,321
$
208,105
$
211,785
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
44,994
$
47,485
$
49,051
$
46,020
$
47,344
Interest-bearing deposits
118,432
116,968
116,358
115,075
117,210
Total deposits
163,426
164,453
165,409
161,095
164,554
Short-term borrowings
2,059
2,071
1,573
1,060
2,605
Long-term borrowings
12,928
12,380
10,496
12,605
11,583
Accrued interest and other liabilities
4,136
4,155
3,852
4,318
4,167
Total liabilities
182,549
183,059
181,330
179,078
182,909
Shareholders' equity:
Preferred
2,394
2,394
2,394
2,394
2,394
Common
26,334
26,131
26,597
26,633
26,482
Total shareholders' equity
28,728
28,525
28,991
29,027
28,876
Total liabilities and shareholders' equity
$
211,277
$
211,584
$
210,321
$
208,105
$
211,785
15
Third Quarter 2025 Results
Condensed Consolidated Average Balance Sheet and Annualized Taxable-equivalent Rates
Three Months Ended
Change in Balance
Nine Months Ended
September 30,
June 30,
September 30,
September 30, 2025 from
September 30,
Change
2025
2025
2024
June 30,
September 30,
2025
2024
in
(Dollars in millions)
Balance
Rate
Balance
Rate
Balance
Rate
2025
2024
Balance
Rate
Balance
Rate
Balance
ASSETS
Interest-bearing deposits at banks
$
17,739
4.43
%
$
19,698
4.47
%
$
25,491
5.43
%
-10
%
-30
%
$
19,037
4.46
%
$
28,467
5.48
%
-33
%
Trading account
95
3.48
95
3.46
101
3.40
—
-6
96
3.45
102
3.43
-6
Investment securities (1)
36,559
4.13
35,335
3.81
31,023
3.70
3
18
35,466
3.98
29,773
3.54
19
Loans:
Commercial and industrial
61,716
6.45
61,036
6.40
59,779
7.01
1
3
61,271
6.41
58,256
7.01
5
Real estate - commercial
24,353
6.35
25,333
6.31
29,075
6.27
-4
-16
25,308
6.27
31,069
6.34
-19
Real estate - residential
24,359
4.59
23,684
4.52
22,994
4.41
3
6
23,744
4.51
23,045
4.33
3
Consumer
26,099
6.60
25,354
6.57
22,903
6.72
3
14
25,275
6.58
22,009
6.63
15
Total loans
136,527
6.14
135,407
6.11
134,751
6.38
1
1
135,598
6.10
134,379
6.36
1
Total earning assets
190,920
5.59
190,535
5.51
191,366
5.82
—
—
190,197
5.54
192,721
5.79
-1
Goodwill
8,465
8,465
8,465
—
—
8,465
8,465
—
Core deposit and other intangible assets
79
89
113
-11
-31
86
126
-32
Other assets
11,589
11,172
9,637
4
20
11,141
9,696
15
Total assets
$
211,053
$
210,261
$
209,581
—
%
1
%
$
209,889
$
211,008
-1
%
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing deposits
Savings and interest-checking deposits
$
104,660
2.23
%
$
103,963
2.24
%
$
98,295
2.65
%
1
%
6
%
$
103,407
2.22
%
$
96,379
2.62
%
7
%
Time deposits
13,990
3.38
14,290
3.45
17,052
4.19
-2
-18
14,166
3.46
19,138
4.34
-26
Total interest-bearing deposits
118,650
2.36
118,253
2.38
115,347
2.88
—
3
117,573
2.37
115,517
2.90
2
Short-term borrowings
2,844
4.50
3,327
4.49
4,034
5.60
-15
-30
3,013
4.50
5,071
5.53
-41
Long-term borrowings
12,789
5.59
10,936
5.72
11,394
5.83
17
12
11,675
5.65
10,887
5.82
7
Total interest-bearing liabilities
134,283
2.71
132,516
2.71
130,775
3.22
1
3
132,261
2.71
131,475
3.24
1
Noninterest-bearing deposits
44,056
45,153
46,158
-2
-5
44,877
47,498
-6
Other liabilities
4,131
3,926
3,923
5
5
4,003
4,202
-5
Total liabilities
182,470
181,595
180,856
—
1
181,141
183,175
-1
Shareholders' equity
28,583
28,666
28,725
—
—
28,748
27,833
3
Total liabilities and shareholders' equity
$
211,053
$
210,261
$
209,581
—
%
1
%
$
209,889
$
211,008
-1
%
Net interest spread
2.88
2.80
2.60
2.83
2.55
Contribution of interest-free funds
.80
.82
1.02
.83
1.03
Net interest margin
3.68
%
3.62
%
3.62
%
3.66
%
3.58
%
(1) Yields on investment securities for the three-month period ended June 30, 2025 and the nine-month period ended September 30, 2025 reflect $20 million and $18 million, respectively, of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People’s United Financial, Inc.
16
Third Quarter 2025 Results
Reconciliation of Quarterly GAAP to Non-GAAP Measures
Three Months Ended
Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
(Dollars in millions, except per share)
Income statement data
Net income
Net income
$
792
$
721
$
2,092
$
1,907
Amortization of core deposit and other intangible assets (1)
6
10
24
32
Net operating income
$
798
$
731
$
2,116
$
1,939
Earnings per common share
Diluted earnings per common share
$
4.82
$
4.02
$
12.34
$
10.78
Amortization of core deposit and other intangible assets (1)
.05
.06
.15
.19
Diluted net operating earnings per common share
$
4.87
$
4.08
$
12.49
$
10.97
Other expense
Other expense
$
1,363
$
1,303
$
4,114
$
3,996
Amortization of core deposit and other intangible assets
(10)
(12)
(32)
(40)
Noninterest operating expense
$
1,353
$
1,291
$
4,082
$
3,956
Efficiency ratio
Noninterest operating expense (numerator)
$
1,353
$
1,291
$
4,082
$
3,956
Taxable-equivalent net interest income
$
1,773
$
1,739
$
5,202
$
5,162
Other income
752
606
2,046
1,770
Less: Gain (loss) on bank investment securities
1
(2)
1
(8)
Denominator
$
2,524
$
2,347
$
7,247
$
6,940
Efficiency ratio
53.6
%
55.0
%
56.3
%
57.0
%
Balance sheet data
Average assets
Average assets
$
211,053
$
209,581
$
209,889
$
211,008
Goodwill
(8,465)
(8,465)
(8,465)
(8,465)
Core deposit and other intangible assets
(79)
(113)
(86)
(126)
Deferred taxes
24
28
25
30
Average tangible assets
$
202,533
$
201,031
$
201,363
$
202,447
Average common equity
Average total equity
$
28,583
$
28,725
$
28,748
$
27,833
Preferred stock
(2,394)
(2,565)
(2,394)
(2,328)
Average common equity
26,189
26,160
26,354
25,505
Goodwill
(8,465)
(8,465)
(8,465)
(8,465)
Core deposit and other intangible assets
(79)
(113)
(86)
(126)
Deferred taxes
24
28
25
30
Average tangible common equity
$
17,669
$
17,610
$
17,828
$
16,944
At end of quarter
Total assets
Total assets
$
211,277
$
211,785
Goodwill
(8,465)
(8,465)
Core deposit and other intangible assets
(74)
(107)
Deferred taxes
23
30
Total tangible assets
$
202,761
$
203,243
Total common equity
Total equity
$
28,728
$
28,876
Preferred stock
(2,394)
(2,394)
Common equity
26,334
26,482
Goodwill
(8,465)
(8,465)
Core deposit and other intangible assets
(74)
(107)
Deferred taxes
23
30
Total tangible common equity
$
17,818
$
17,940
(1) After any related tax effect.
17
Third Quarter 2025 Results
Reconciliation of Quarterly GAAP to Non-GAAP Measures, Five Quarter Trend
Three Months Ended
September 30,
June 30,
March 31,
December 31,
September 30,
2025
2025
2025
2024
2024
(Dollars in millions, except per share)
Income statement data
Net income
Net income
$
792
$
716
$
584
$
681
$
721
Amortization of core deposit and other intangible assets (1)
6
8
10
10
10
Net operating income
$
798
$
724
$
594
$
691
$
731
Earnings per common share
Diluted earnings per common share
$
4.82
$
4.24
$
3.32
$
3.86
$
4.02
Amortization of core deposit and other intangible assets (1)
.05
.04
.06
.06
.06
Diluted net operating earnings per common share
$
4.87
$
4.28
$
3.38
$
3.92
$
4.08
Other expense
Other expense
$
1,363
$
1,336
$
1,415
$
1,363
$
1,303
Amortization of core deposit and other intangible assets
