Earnings Performance: M&T Bank Corporation reported diluted GAAP earnings per share of $4.24 for Q2 2025, a substantial increase from $3.32 in the prior quarter, demonstrating strong earnings momentum. Net income for the quarter was $116 million, down from $584 million in the linked quarter, raising concerns about sustainability given the large drop in net income, despite improved per-share metrics.

Loan and Deposit Growth: Average loans and leases increased by $600 million to $135.4 billion, with significant growth in consumer and residential mortgage loans. However, commercial real estate (CRE) balances declined 4% to $25.3 billion. Average total deposits rose by $2.2 billion or 1% to $163.4 billion, with new growth from multiple segments, but non-interest-bearing deposits saw a reduction.

Fee Income and Non-Interest Income: M&T's non-interest income was $683 million, up from $611 million in the linked quarter, largely driven by increases in mortgage banking, service charges, and trust revenues. The strong performance in fee income categories is an encouraging sign for operational performance.