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M&T Bank cleaned up its loan portfolio in 2025.

The bank told investors Friday morning that its provision for credit losses was $125 million in the fourth quarter, a 10.7 percent drop compared to the same period in 2024. M&T’s provision for credit losses was $505 million for all of last year, a 17.2 percent drop from 2024.

Additionally, the allowance for loan losses as a percent of loans outstanding decreased from 1.61 percent at the end of 2024 to 1.53 percent at the end of 2025. The bank noted that the reduction in criticized loans was predominantly commercial real estate loans.

“M&T finished 2025 with another quarter of strong financial performance,” M&T Bank Chief Financial Officer Daryl Bible said in a statement. “For the full-year 2025, M&T achieved a 16% increase in diluted earnings per common share, meaningfully reduced its level of criticized loans and improved its efficiency ratio while continuing to expand and improve our capabilities. M&T’s fundamentals remain strong, positioning the Company for growth as we enter the new year. As we close out 2025, I’d like to thank my colleagues for their unwavering commitment to our customers and the communities we serve.”

In 2025, noninterest expense aggregated $5.49 billion, up 2 percent from $5.36 billion in 2024. Salaries and employee benefits expense increased $19 million, reflecting higher salaries expense from annual merit and other increases, according to M&T.

The bank also noted that a decline in FDIC assessments resulting from a decrease in the deposit insurance provider’s loss estimate associated with certain failed banks was offset by a $30 million contribution to The M&T Charitable Foundation.