MTB Q3 Earnings Top Estimates on Higher NII & Fee Income, Stock Down

Core Insights - M&T Bank Corporation (MTB) reported third-quarter 2025 adjusted net operating earnings per share of $4.87, exceeding the Zacks Consensus Estimate of $4.40 and up from $4.08 in the same quarter last year [1][9] Financial Performance - Net income available to common shareholders was $754 million, reflecting an 11.8% increase from the prior-year quarter [2] - Quarterly revenues reached $2.51 billion, surpassing the Zacks Consensus Estimate of $2.44 billion and representing a 7.7% year-over-year increase [3] - Net interest income (NII) rose 2% year over year to $1.76 billion, slightly below the estimate of $1.77 billion [3] - Total non-interest income was $752 million, up 24.1% year over year, driven by increases across almost all components [3] Expenses and Efficiency - Total non-interest expenses increased by 4.6% year over year to $1.36 billion, attributed to higher salaries, employee benefits, and operational costs [4] - The efficiency ratio improved to 53.6%, down from 55.0% in the year-earlier quarter, indicating enhanced profitability [4] Loan and Deposit Trends - Total loans amounted to $136.9 billion as of September 30, 2025, showing slight growth from the previous quarter [5] - Total deposits decreased marginally to $163.4 billion on a sequential basis [5] Credit Quality - Net charge-offs increased by 21.6% to $146 million compared to the prior-year quarter [6] - The provision for credit losses was $125 million, up 4.1% from the year-ago quarter [6] - Non-performing assets declined by 21.1% year over year to $1.55 billion [6] Capital Position - The estimated Common Equity Tier 1 ratio was 10.99%, down from 11.54% as of third-quarter 2024 [10] - Tangible equity per share increased to $115.31 from $107.97 in the third quarter of 2024 [10] - Return on average tangible assets and average tangible common shareholder equity improved to 1.56% and 17.13%, respectively [10] Share Repurchase - M&T Bank repurchased 2.1 million shares of its common stock for $193.46 million in the third quarter of 2025 [11] Future Outlook - Sustained growth in both NII and non-interest income is expected to support M&T Bank's organic growth, alongside steady loan growth and improving asset quality [12]