MTB Q2 Earnings Top Estimates on Higher Non-Interest Income, Stock Up

Core Viewpoint - M&T Bank Corporation (MTB) reported better-than-expected quarterly results, with adjusted net operating earnings per share of $4.28, surpassing the Zacks Consensus Estimate of $4.04, and showing an increase from $3.79 per share in the same quarter last year [1][9]. Financial Performance - The net income available to common shareholders was $679 million, reflecting an 8.5% increase from the prior-year quarter [2]. - Quarterly revenues reached $2.40 billion, slightly exceeding the Zacks Consensus Estimate of $2.39 billion, and marking a 4.1% year-over-year increase [3]. - Net interest income (NII) declined marginally year over year to $1.72 billion, below the estimate of $1.76 billion [3]. - Total non-interest income was $683 million, up 17% year over year, driven by increases across almost all components, surpassing the estimate of $632.6 million [4]. - Total non-interest expenses rose to $1.34 billion, a 3% increase year over year, attributed to higher salaries, employee benefits, and other operational costs [4]. Efficiency and Profitability - The efficiency ratio improved to 55.2%, down from 55.3% in the previous year, indicating enhanced profitability [5]. - The return on average tangible assets and average tangible common shareholder equity were 1.44% and 15.54%, respectively, compared to 1.31% and 15.27% in the prior-year quarter [10]. Loan and Deposit Trends - Total loans increased to $136.1 billion as of June 30, 2025, up 1.1% from the prior quarter, while total deposits slightly decreased to $164.5 billion [6]. - The company’s estimates for loans and leases were $133 billion, and for deposits, $160.7 billion [6]. Credit Quality - Net charge-offs decreased by 21.2% to $108 million year over year, better than the estimate of $143 million [7]. - The provision for credit losses was $125 million, down 16.7% from the previous year, aligning closely with the estimate of $125.9 million [7]. - Non-performing assets declined 22.1% year over year to $1.60 billion, although slightly above the estimate of $1.44 billion [7]. Capital Management - M&T Bank's estimated Common Equity Tier 1 ratio was 10.98%, down from 11.45% in the second quarter of 2024 [10]. - The tangible equity per share increased to $112.48 from $102.42 in the same quarter last year [10]. - The company repurchased 6.07 million shares for $175.93 million as part of its capital plan during the second quarter of 2025 [11].