M&T Bank Q4 Earnings Call Highlights

Core Insights - M&T Bank reported record full-year profitability with net income of $2.85 billion and earnings per share (EPS) of $17, reflecting consistent growth and a disciplined, return-focused approach [2][5][3] Financial Performance - Fee income grew 13% to a record $2.7 billion, increasing its share of total revenue from 26% to over 28% [1] - The efficiency ratio improved from 56.9% to 56% for the year, indicating well-controlled expenses [1] - Non-accrual loans decreased 26% year-over-year, with a non-accrual ratio of 90 basis points, the lowest since 2007 [1][5] Shareholder Returns - The bank increased its quarterly dividend by 11% and repurchased 9% of outstanding shares, while tangible book value per share grew by 7% [2][5] - Return on tangible assets exceeded 1.4%, placing the bank in the top quartile for this measure [2] Loan and Deposit Trends - Average loans and leases rose by $1.1 billion to $137.6 billion, driven by increases in commercial, residential mortgage, and consumer loans [9] - Average total deposits increased by $2.4 billion to $165.1 billion, with non-interest-bearing deposits up to $44.2 billion [12] Outlook for 2026 - M&T Bank expects modest loan growth to $140–142 billion and taxable-equivalent net interest income (NII) of $7.2–7.35 billion, with a net interest margin in the low 3.70s [4][18] - The bank anticipates non-interest income to be between $2.675 billion and $2.775 billion, with total non-interest expense projected at $5.5 billion to $5.6 billion [20] Capital Management - The estimated Common Equity Tier 1 (CET1) ratio was 10.84% at quarter-end, down 15 basis points from the previous quarter [16] - Management discussed a fair-value election for residential mortgage servicing rights (MSRs), which added approximately $197 million in regulatory capital [21]