MTB Q4 Earnings Beat Estimates on Higher NII & Fee Income, Stock Down

Core Viewpoint - M&T Bank Corporation (MTB) reported strong fourth-quarter 2025 results, with net operating earnings per share of $4.72, exceeding estimates and showing year-over-year growth from $3.92 [1][9] Financial Performance - Net income available to common shareholders was $718 million, an increase of 11.4% from the prior-year quarter, with full-year net operating earnings per share at $17.20, surpassing estimates and up from $14.88 in 2024 [3] - Quarterly revenues reached $2.47 billion, exceeding estimates and reflecting a 3.8% year-over-year increase, while full-year revenues totaled $9.7 billion, up 4.4% [4] - Net interest income (NII) rose 2.9% year over year to $1.78 billion, contributing to the overall revenue growth [4] Income and Expenses - Total non-interest income was $696 million, up 5.9% year over year, driven by increases across nearly all components [5] - Total non-interest expenses increased by 1.2% year over year to $1.38 billion, primarily due to higher salaries, employee benefits, and other operational costs [5] Efficiency and Profitability - The efficiency ratio improved to 55.1%, down from 56.8% in the previous year, indicating enhanced profitability [6][9] - Return on average tangible assets and average tangible common shareholder equity improved to 1.49% and 16.24%, respectively, compared to 1.35% and 14.66% in the prior-year quarter [10] Loan and Deposit Growth - Total loans amounted to $138.7 billion, reflecting a 1.3% increase from the prior quarter, while total deposits rose 2.1% sequentially to $166.9 billion [7] Credit Quality - Net charge-offs increased by 15.6% to $185 million year over year, but provisions for credit losses decreased by 10.7% to $125 million [8] - Non-performing assets declined by 25.4% year over year to $1.29 billion, with the ratio of non-accrual loans to total net loans improving to 0.90% from 1.25% [8] Capital Management - M&T Bank repurchased 2.7 million shares for $183.30 million in the fourth quarter of 2025 as part of its capital plan [11]