We continue coverage of regional bank Q1 earnings season today with M&T Bank Corporation ( MTB ) . As a reminder, this one is one of the larger regional banks that we cover . TheSelloff got you down? We are thriving during it at BAD BEAT InvestingWe have the right high-conviction picks and have helped our members hedge, and done well in this selloff. We also have pinpointed areas to buy during the correction. Enjoy more rapid-returns with our strategy to advance your savings and retirement timeline by embra ...

Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this arti ...

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 and developments in the financial services industry, including industry conditions; changes in interest rates, spreads on earning assets and interest-bearing ...

Core Viewpoint - M&T Bank Corporation's first-quarter 2025 adjusted net operating earnings per share of $3.38 fell short of the Zacks Consensus Estimate of $3.41, although it showed an improvement from $3.09 per share in the same quarter last year [1] Financial Performance - The company's net income available to common shareholders was $547 million, reflecting an 8.3% increase from the prior-year quarter [2] - Quarterly revenues amounted to $2.31 billion, missing the Zacks Consensus Estimate by 1.6%, but representing a 2.2% year-over-year increase [3] - Net interest income (NII) rose nearly 1% year over year to $1.71 billion, although it was below the estimate of $1.75 billion [3] - Total non-interest income reached $611 million, up 5.3% year over year, driven by increases in trust income, service charges on deposit accounts, and mortgage banking revenues [4] - Total non-interest expenses were $1.42 billion, up 1.4% year over year, exceeding the projected $1.39 billion [4] Loan and Deposit Trends - Loans and leases, net of unearned discount, were $134.6 billion as of March 31, 2025, showing a slight decrease from the prior quarter [5] - Total deposits increased by 2.7% sequentially to $165.4 billion, surpassing the estimate of $160.9 billion [5] Credit Quality - Net charge-offs decreased by 17.4% to $114 million compared to the prior-year quarter, better than the estimate of $151.2 million [6] - The provision for credit losses was $130 million, down 35% from the year-ago quarter, also better than the estimate of $149.7 million [6] - Non-performing assets declined by 33% year over year to $1.57 billion, which was lower than the estimate of $1.64 billion [6] Capital Position and Profitability - The estimated Common Equity Tier 1 ratio improved to 11.50% from 11.08% in the first quarter of 2024 [8] - Tangible equity per share increased to $111.13 from $99.54 in the first quarter of 2024 [8] - Return on average tangible assets and average tangible common shareholder equity were 1.21% and 12.53%, respectively, compared to 1.08% and 12.67% in the prior-year quarter [8] Capital Distribution - M&T Bank repurchased 3,415,303 shares of its common stock for $192.06 million in the first quarter of 2025 [9] Outlook - The rising NII and non-interest income are expected to support M&T Bank's organic growth, while the strengthening capital position and improving credit quality will bolster its financials in the long run [10]

M&T Bank Corporation (MTB) came out with quarterly earnings of $3.38 per share, missing the Zacks Consensus Estimate of $3.41 per share. This compares to earnings of $3.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -0.88%. A quarter ago, it was expected that this company would post earnings of $3.70 per share when it actually produced earnings of $3.92, delivering a surprise of 5.95%.Over the last four quarters, the compa ...

Financial Data and Key Metrics Changes - The first quarter results showed diluted GAAP earnings per share at $3.32, down from $3.86 in the prior quarter [13] - Net income decreased to $584 million compared to $681 million in the linked quarter [13] - The net interest margin increased by eight basis points to 3.66% [15] - Fee income grew by 5% year-over-year, or 10% excluding last year's BLG distribution [12] - Non-interest income was $611 million, down from $657 million in the linked quarter [24] Business Line Data and Key Metrics Changes - Average loans and leases decreased by $0.9 billion to $134.8 billion, with lower CRE balances partially offset by growth in CNI, consumer, and residential mortgage [17] - CNI loans grew by 1% to $61 billion, driven by strength in corporate institutional and fund banking [17] - CRE loans declined by 6% to $26.3 billion, reflecting payoffs and muted origination activity [18] - Consumer loans grew by 1% to $24.3 billion, reflecting increases in recreational finance and indirect auto loans [18] Market Data and Key Metrics Changes - Average total deposits declined by $3.4 billion or 2% to $161.2 billion, with a decline in broker deposits and commercial banking [22] - Average non-interest bearing deposits decreased by $1.1 billion to $45.4 billion [22] - Investment securities and cash totaled $57.9 billion, representing 28% of total assets [19] Company Strategy and Development Direction - The company aims to reach an 11% CET1 ratio in 2025 while focusing on growing customer deposits at a reasonable cost [34][38] - M&T Bank is committed to growing its New England and Long Island markets and optimizing resources through simplification [41] - The company emphasizes a disciplined approach to lending, particularly in the competitive CRE market [78] Management's Comments on Operating Environment and Future Outlook - The economic backdrop remains dynamic, with mixed recent economic data and weakening business and consumer sentiment [35] - Management expects net interest income to be between $7.05 billion and $7.15 billion, with a net interest margin averaging in the mid to high 360s [37] - The company anticipates credit charge-offs for the full year to be near 40 basis points [40] Other Important Information - Non-interest expenses increased to $1.42 billion, reflecting higher salary and benefits costs [27] - The efficiency ratio was reported at 60.5%, compared to 56.8% in the linked quarter [27] Q&A Session Summary Question: Insights on NII and deposit flow activity - Management noted a reduction in deposit guidance but expressed confidence in achieving growth across various business lines [48][49] Question: Fee income growth and Bayview distribution - Management confirmed no Bayview distribution in Q1 but expects significant growth in fee businesses throughout the year [51][52] Question: Customer feedback on tariffs and CapEx decisions - Management observed weak sentiment among consumers and businesses, with some customers pausing investments due to uncertainty [61] Question: Regulatory environment insights - Management indicated a more pro-business regulatory environment, with potential easing of certain requirements benefiting regional banks [74] Question: Challenges in the commercial real estate portfolio - Management highlighted increased competition in the CRE space, leading to higher payoffs than expected [80] Question: Loan loss reserves and macro outlook - Management adjusted macro outlook to reflect potential economic pressures, leading to a slight increase in loan loss reserves [92] Question: Long-term debt and funding strategy - Management plans to issue long-term debt as needed, focusing on reducing broker deposits and maintaining strong liquidity [135][137]

Financial Performance - M&T Bank Corporation reported a net income of $584 million, or $3.32 per diluted share, for Q1 2025, compared to $681 million and $3.86 per diluted share in Q4 2024[1][2]. - Net income for Q1 2025 was $584 million, an increase of 10% from $531 million in Q1 2024[39]. - Net income available to common shareholders rose to $547 million, up 8% from $505 million year-over-year[39]. - Basic earnings per share increased to $3.33, reflecting a 10% growth compared to $3.04 in the previous year[39]. - Net income for the quarter increased by 10% to $584 million, compared to $531 million in the prior year[43]. - Diluted earnings per share decreased to $3.32 from $3.86 in the previous quarter[50]. Income and Revenue - Net interest income for Q1 2025 was $1,707 million, a decrease of 2% from $1,740 million in Q4 2024, while noninterest income was $611 million, down from $657 million in the previous quarter[2][6]. - Noninterest income fell by $46 million, or 7%, in 1Q25 compared to 4Q24, but rose by $31 million, or 5%, compared to 1Q24[21][22]. - Total other income rose by 5% to $611 million, driven by increases in mortgage banking revenues (up 13% to $118 million) and trust income (up 11% to $177 million)[43]. - Interest income decreased by 7% to $2,560 million compared to $2,745 million in the same period last year[43]. - Net interest income after provision for credit losses increased by 6% to $1,565 million from $1,480 million year-over-year[43]. Asset and Loan Management - Average loans and leases decreased by $879 million, primarily due to a decline in commercial real estate loans, while total loans and leases stood at $134,844 million[2][15]. - Total loans and leases slightly decreased by 1% to $134,844 million compared to $135,723 million in the previous quarter[49]. - Nonaccrual loans improved to 1.14% of total loans, down from 1.25% at the end of Q4 2024, indicating better credit quality[6][2]. - Nonaccrual loans decreased to $1.54 billion in 1Q25, down 9% from 4Q24 and 33% from 1Q24[18]. - Total nonperforming assets also fell by 33% to $1.57 billion, down from $2.34 billion year-over-year[39]. Capital and Equity - M&T's CET1 capital ratio declined to an estimated 11.50% in Q1 2025, down from 11.68% in Q4 2024, following share repurchases totaling $662 million[6][3]. - CET1 capital ratio was estimated at 11.50% as of March 31, 2025, compared to 11.68% in 4Q24[28][29]. - Total shareholders' equity increased by 7% to $28,991 million from $27,169 million in the prior year[46]. - Average total equity increased to $28,998 million from $28,707 million in the previous quarter[50]. Expenses and Efficiency - The efficiency ratio for Q1 2025 was 60.5%, compared to 56.8% in Q4 2024, indicating a rise in operational costs relative to income[2][8]. - Noninterest expense increased by $52 million, or 4%, from 4Q24, and by $19 million, or 1%, from 1Q24[24][25]. - The efficiency ratio improved to 60.5% from 60.8% in the previous year, indicating better cost management[41]. Shareholder Returns - The company repurchased 3,415,303 shares of common stock in Q1 2025, costing $662 million, including taxes[6][2]. - Cash dividends declared totaled $223 million for common stock and $36 million for preferred stock in 1Q25[29]. - M&T repurchased 3,415,303 shares of common stock at an average cost of $192.06 per share, totaling $662 million in 1Q25[30]. Tax and Regulatory - The effective income tax rate was 23.2% in 1Q25, up from 22.8% in 4Q24 and 20.0% in 1Q24[26]. Deposits and Borrowings - Average interest-bearing deposits at banks decreased by $3.9 billion, reflecting a decline in average deposits and share repurchases[10][15]. - Noninterest-bearing deposits decreased by 3% to $49,051 million, while total deposits decreased by 1% to $165,409 million[46]. - Short-term borrowings significantly decreased by 67% to $1,573 million compared to $4,795 million in the previous year[46].

BUFFALO, N.Y., April 14, 2025 /PRNewswire/ -- M&T Bank Corporation ("M&T" or "the Company") reports quarterly net income of $584 million or $3.32 of diluted earnings per common share. (Dollars in millions, except per share data) 1Q25 4Q24 1Q24 Earnings Highlights Net interest income $        1,695 $        1,728 $        1,680 Taxable-equivalent adjustment 12 12 12 Net interest income - taxable-equivalent 1,707 1,740 1,692 Provision for credit losses 130 <td colsp ...

Wall Street analysts expect M&T Bank Corporation (MTB) to post quarterly earnings of $3.41 per share in its upcoming report, which indicates a year-over-year increase of 10.4%. Revenues are expected to be $2.34 billion, up 3.7% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this ...

Core Viewpoint - M&T Bank Corporation (MTB) is expected to report year-over-year increases in quarterly revenues and earnings for the first quarter of 2025, with results influenced by various factors including loan demand and net interest income [1][13]. Group 1: Financial Performance Expectations - M&T Bank is slated to report first-quarter 2025 results on April 14, with anticipated increases in revenues and earnings compared to the previous year [1]. - The consensus estimate for first-quarter earnings is $3.41 per share, reflecting a 10.4% increase from the year-ago figure, while revenues are expected to reach $2.35 billion, indicating a 4% rise year-over-year [13]. - In the last reported quarter, M&T Bank's results benefited from a rise in loans and leases, non-interest income, and net interest income (NII), although a decline in deposit balance posed challenges [2]. Group 2: Factors Influencing Results - The uncertain macroeconomic environment, particularly due to tariff plans, has led to modest demand for commercial, industrial, real estate, and consumer loans in the first two months of the quarter [4]. - Management anticipates a decline in average loans for the first quarter of 2025, particularly due to a decrease in commercial real estate (CRE) loans, which may impact the growth of average interest-earning assets [5]. - The Federal Reserve's decision to keep interest rates unchanged at 4.25-4.5% is expected to result in only slight improvements in NII, with the consensus estimate for NII at $1.71 billion, a 0.9% decrease from the prior quarter [6]. Group 3: Revenue Components - Management expects lower average total deposits in the first quarter due to seasonal flows and a reduction in non-customer deposits, which may affect service charge revenues [7]. - The consensus estimate for mortgage banking revenue is $113.6 million, indicating a 2.9% decline from the previous quarter, while brokerage services income is expected to decline by 5.3% to $28.4 million [9]. - Trust income is projected to decrease by 1.3% sequentially, with the consensus estimate at $177.2 million [10]. Group 4: Expense Projections - Total expenses for the first quarter of 2025 are projected to rise to $1.39 billion, reflecting a sequential increase of 2.3%, driven by investments in strengthening franchises and seasonal compensation [11]. Group 5: Earnings Prediction Insights - The likelihood of M&T Bank beating earnings estimates is considered low, with an Earnings ESP of -0.73% and a Zacks Rank of 3 [12].