Company: MTB-PJ
Filing Date: 2025-10-27
Form Type: 10-Q
Source: 0000036270-25-000024
Chunk: 106

Company: M&T BANK CORP
Filing Date: 2025-10-27
Form: 10-Q
Item: Part I, Item 1
Chunk 106
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%$45,836 $43,555 $2,281 5 %

The Commercial Bank segment’s net income in the third quarter of 2025 declined slightly from the second quarter of 2025.

•Net interest income increased $8 million reflecting an expansion of the net interest margin on loans of 4 basis points and the impact of one additional day in the recent quarter, partially offset by a narrowing of the net interest margin on deposits of 5 basis points.

•A modest rise in noninterest income reflected higher commercial mortgage banking revenues and a gain on the sale of equipment leases in the recent quarter, partially offset by a gain on the sale of an out-of-footprint residential builder and developer loan portfolio in the second quarter of 2025.

•The provision for credit losses increased $12 million reflecting higher net charge offs of commercial and industrial loans.

•Average loans declined $302 million reflecting payoffs and paydowns of commercial real estate loans and the full-quarter impact of the sale of an out-of-footprint residential builder and developer loan portfolio in the second quarter of 2025, partially offset by higher average balances of commercial and industrial loans reflecting growth in loans to the financial and insurance industry.

•Average deposits were essentially unchanged reflecting higher average savings and interest-checking deposit balances, partially offset by lower noninterest-bearing deposits largely driven by a single commercial customer.

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Net income for the Commercial Bank segment increased $45 million in the first nine months of 2025 as compared with the first nine months of 2024. 

•Net interest income decreased $53 million reflecting a narrowing of the net interest margin on deposits of 23 basis points and a decline in average loans of $2.2 billion, partially offset by higher average deposits of $2.3 billion.

•Noninterest income increased $100 million due to higher other revenues from operations of $59 million, reflecting a rise in credit-related fees of $19 million, a $15 million gain on the sale of an out-of-footprint residential builder and developer loan portfolio and a $12 million gain on the sale of equipment leases. Also contributing to that increase was higher commercial mortgage banking revenues of $18 million, a rise in service charges on commercial deposit accounts of $13 million and an increase in trading account and other non-hedging derivative gains of $10 million.

•The provision for credit losses decreased $25 million reflecting lower net charge-offs of commercial and industrial loans, partially offset by a higher provision for unfunded credit commitments.

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