What would be the normalized CET1 level for M&T in the longer term after the RWA benefit from new capital proposals, and how quickly would they get there, especially regarding buybacks?

Daryl Bible explained that if the proposal goes through, their CET1 ratio could increase by 100 bps. He noted they would need to assess rating agency views but expects a trend towards lower tangible equity ratios. He reiterated the long-term CET1 target of 10% and the flexibility to stop buybacks and accrete capital quickly if needed. “So I mean if it goes as a proposal, just use round numbers, so if we adopt it, our CET1 ratio goes up 100 basis points, to keep it simple. We'd have to really see what other constituencies, primarily the rating agencies, to see what they would think about that.”

Request for expansion on why NIM expectations are more cautious than previously guided.

Daryl Bible attributed the caution to slower initial growth in consumer indirect loans (due to weather) and CRE (seasonal Q1 drop-off, though March saw strong originations). He also mentioned the challenge of growing DDA accounts in a higher rate environment. “So it's a combination of 2 things. Obviously, we didn't come out of the blocks really strong in the consumer indirect. That's an important portfolio to us because it has higher yields. And it was really more of a weather event from that perspective.”

What catalyzed the rapid growth in the NDFI portfolio over the last five years, especially compared to other loan categories?

Daryl Bible explained that the bulk of their NDFI portfolio consists of three core businesses: mortgage warehouse lending (safe, profitable), lending to REITs (sound growth), and fund banking/capital call lines (acquired from Webster, growing to rightsize for the company). He emphasized comfort with these core areas. “When I look at the bulk of our NDFI portfolio, it's 3 primary businesses. Mortgage warehouse lending is a core business for us. It's a really safe credit business. It has -- you have to make sure you do really good from an operations perspective and perfection of collateral.”

MTB

M&T Bank (MTB) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Financials· Apr 15, 2026

Source: earnings call transcript

Executive summary

M&T Bank Corporation Q1 FY26 — Strong Performance with Capital Returns and Fee Income Growth

M&T Bank delivered a strong start to the year, marked by NIM expansion, robust C&I loan growth, and significant fee income momentum. The bank also demonstrated strong capital management through substantial share repurchases and continued asset quality improvement. While facing some NII caution due to slower initial loan growth and seasonal expenses, management remains confident in achieving full-year expectations, driven by diversified revenue streams and disciplined execution.

Highlights

Net interest margin expanded 2 basis points to 3.71%.
Average C&I loans grew $1.5 billion from the fourth quarter.
Fee income grew 13% from the first quarter of 2025.
Criticized balances reduced by over $700 million.
Executed $1.25 billion in share repurchases, representing over 3.5% of shares outstanding.

Concerns

Diluted GAAP earnings per share decreased to $4.13 from $4.67 in the prior quarter.
Taxable equivalent net interest income decreased $27 million or 2% from the linked quarter.
Mortgage banking revenues decreased $28 million from the fourth quarter.
Noninterest expense increased $59 million from the prior quarter, reflecting $115 million in seasonal compensation.
Full-year NII outlook is trending towards the bottom half of the 7.2% to 7.35% range.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year NII growth	bottom half of 7.2% to 7.35% high materiality	FY26 · 2026	Medium
Full-year NIM	high 3.60s high materiality	FY26 · 2026	Medium
Full-year Fee Income growth	trend toward the top of their respective ranges medium materiality	FY26 · 2026	Medium
Full-year Expenses	trend toward the top of their respective ranges medium materiality	FY26 · 2026	Medium
Full-year Taxable Equivalent Tax Rate	approximately 24% low materiality	FY26 · 2026	High
CET1 ratio target	bottom end of the CET1 ratio of 10% high materiality	FY26 · 2026	High

MTB operating KPIs by quarter

MTB operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Common equity tier 1 ratio (CET1)	—	—	10.99% M&T's CET1 ratio was an estimated 10.99%, unchanged from the second quarter. Source: earnings call transcript	10.84% M&T's CET1 ratio was an estimate of 10.84%, a decline of 15 basis points from the third quarter. Source: earnings call transcript	10.33% M&T's CET1 ratio was an estimated 10.33%, decline of 51 basis points from the fourth quarter. Source: earnings call transcript	10.9% M&T's estimated CET1 ratio was 10.9%, a decline of 14 basis points from the first quarter. Source: earnings call transcript	10.16% M&T's estimated CET1 ratio was 10.16%, a decline of 3 basis points in the second quarter. Source: earnings call transcript	-0.7 pt
Return on tangible common equity (ROTCE)	14.66% Net operating income yielded an ROTA and ROTCE of 1.35% and 14.66% for the recent quarter. Source: earnings call transcript	12.53% Net operating income yielded an ROTA and ROTCE of 1.21% and 12.53%. Source: earnings call transcript	17.13% We produced strong returns with operating ROTA and ROTCE of 1.56% and 17.13%. Source: earnings call transcript	16.24% Net operating income yielded an ROTA and an ROTCE of 1.49% and 16.24% for the recent quarter. Source: earnings call transcript	14.51% Net operating income yielded an ROTA and an ROTCE of 1.33% and 14.51% for the recent quarter. Source: earnings call transcript	18.57% Net operating income yielded an ROA and ROTCE of 1.59% and 18.57%. Source: earnings call transcript	17.29% Third quarter net operating ROTA and ROTCE were 1.47% and and 17.29%, both exceeding the targets established for our long-term incentive structure. Source: earnings call transcript	-1.3 pt
Net interest margin	3.58% The net interest margin was 3.58%, a decrease of 4 basis points from the prior quarter. Source: earnings call transcript	3.66% Net interest margin was 3.66%, an increase of 8 basis points from the prior quarter. Source: earnings call transcript	—	3.69% The net interest margin was 3.69%, an increase of 1 basis point from the prior quarter. Source: earnings call transcript	3.71% Net interest margin was 3.71%, an increase of 2 basis points from the prior quarter. Source: earnings call transcript	—	3.65% In line with the outlook we provided in July and September, net interest margin was 3.65%, down 5 basis points from the prior quarter, mostly reflecting those same factors that impacted NII. Source: earnings call transcript	—
Efficiency ratio	—	60.5% The efficiency ratio was 60.5% compared to 56.8% in the linked quarter. Source: earnings call transcript	53.6% Revenues grew more than expenses, resulting in our third quarter efficiency ratio of 53.6%. Source: earnings call transcript	55.1% The efficiency ratio was 55.1% compared to 53.6% in the linked quarter. Source: earnings call transcript	58.3% The efficiency ratio was 58.3%, compared to 55.1% in the linked quarter. Source: earnings call transcript	—	54.4% Our efficiency ratio was 54.4% in the third quarter, up from 52.8% in the linked quarter. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Baltimore Ravens College Track Center	launch	recently launched
Bronx Full-Service Branch	launch	opened
Boston Innovation Ecosystem Program	launch	this week

Risks & headwinds

Geopolitical conflict (Iran situation) Current

poses new risk to the U.S. and global economies through energy prices and uncertainty

Mitigation:We remain well positioned for a dynamic economic environment.

K-shaped economy / lower-end consumer vulnerability Current

growing divide between higher and lower income households... lower end consumer has not declined but maintained and is vulnerable to the risks in the environment.

Slower consumer spending Current

Consumer spending has slowed but continues to grow in aggregate.

Competitive lending environment Current

It's really competitive on the lending side, both commercial, consumer, CRE.

Mitigation:Disciplined underwriting, prioritizing structure over pricing, not chasing growth.

Q&A highlights

Clarification on M&T's intent to adopt the Expanded Risk-Based (ERB) approach under new capital proposals and what drives the estimated benefit.

Daryl Bible stated that while they cannot commit to adoption yet, if the advantage remains, they would likely opt-in. He noted that the proposal is new and needs to go through comment and approval processes, but if there's a significant advantage, it would be a good decision for shareholders.

“I can't really commit to you that we will adopt the ERB. But what I can tell you is if there's an advantage that we see here today, so that doesn't change. I think it's up to us to make good decisions for our shareholders, which means we would opt in, probably.”

asked by Manan Gosalia · answered by Daryl Bible

2 min read 6 chapters

Detailed narrative

Operational Excellence & Growth Initiatives

M&T is focused on operational excellence, aiming for simpler, more consistent, and resilient operations, alongside "teaming for growth" to deepen relationships and expand market opportunities. Recent investments include a new Baltimore Ravens College Track Center, a full-service branch in the Bronx, and a multimillion-dollar program with the Boston Foundation to accelerate the city's innovation ecosystem.

These initiatives underscore a commitment to community engagement and long-term strategic development.

Balance Sheet Strength & Risk Management

The bank maintains a strong balance sheet characterized by a high-quality loan portfolio, proven asset quality, robust capital levels, and ample liquidity. M&T emphasizes a disciplined approach to underwriting, pricing, and risk management, choosing selectivity over growth to preserve high-quality, low-volatility revenue and earnings streams. This approach positions the bank to navigate economic uncertainties while delivering strong results.

Fee Income Momentum

M&T is experiencing strong year-over-year fee income momentum, with solid growth across all fee categories. This includes a specialized subservicing business, which is expected to bring in additional balances in the second half of the year, contributing an annual run rate of $30 million to $40 million with a 50% margin.

Other areas like trust businesses, treasury management, and capital markets are also showing good growth, indicating a well-diversified fee revenue stream.

Capital Management & Regulatory Outlook

The bank executed $1.25 billion in share repurchases, reducing its CET1 ratio to an estimated 10.33%. M&T is well-positioned for the Federal Reserve's proposed regulatory capital framework, estimating an approximate 90 basis point benefit to CET1 under the standardized approach, with an incremental 10 to 20 basis points if opting into the expanded risk-based approach.

The bank's long-term CET1 target is 10%, with flexibility to accrete capital quickly if market conditions warrant.

Credit Quality & NDFI Portfolio

Asset quality remains strong, with a $700 million reduction in criticized balances and net charge-offs of 31 basis points. Nonaccrual loans decreased slightly to $1.2 billion. The NDFI portfolio, which is smaller than peers, is primarily composed of fund banking, residential mortgage warehouse lending, and institutional CRE, all considered long-standing and well-understood businesses with strong collateral visibility and diversification.

Loan Growth Dynamics

While overall average loans increased by $0.8 billion, growth was mixed. C&I loans increased $1.5 billion, driven by middle market and specialty businesses, reflecting an uptick in utilization. CRE loans declined 3% due to moderating paydowns, though strong origination activity was observed in March. Consumer loans declined 1% due to lower recreational finance and auto loans, attributed to poor weather early in the year.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.