Financial Data and Key Metrics Changes - M&T Bank reported record net income of $2.85 billion and record EPS of $17 for the full year 2025, with a top quartile return on tangible assets exceeding 1.4% [7] - The quarterly dividend was increased by 11%, and 9% of outstanding shares were repurchased, while tangible book value per share grew by 7% [7] - Non-accruals decreased by 26%, with the non-accrual percentage of total loans reaching 90 basis points, the lowest since 2007 [7] - The efficiency ratio improved from 56.9% to 56% [7] Business Line Data and Key Metrics Changes - Fee income grew by 13%, reaching a record of $2.7 billion, with the fee mix as a percentage of revenue increasing from 26% to over 28% [7] - Average loans and leases increased by $1.1 billion to $137.6 billion, with commercial loans rising by $0.5 billion to $62.2 billion [9][10] - Non-interest income was $696 million, down from $752 million in the linked quarter, with mortgage banking revenues increasing to $155 million [13] Market Data and Key Metrics Changes - Investment securities and cash held at the Fed totaled $53.7 billion, representing 25% of total assets [11] - Average total loans rose by $2.4 billion to $165.1 billion, with non-interest-bearing deposits increasing to $44.2 billion [12] Company Strategy and Development Direction - M&T Bank's strategy focuses on operational excellence and teaming for growth, aiming to create a unified enterprise approach to enhance customer experience [18][19] - The company is committed to deepening relationships and coordinated planning across business lines to unlock new opportunities [18] Management's Comments on Operating Environment and Future Outlook - The economic backdrop remains resilient, with concerns about potential slowdowns due to weakening labor markets [20] - For 2026, M&T expects taxable equivalent net interest income to be between $7.2 billion and $7.35 billion, with average loans projected at $140 billion to $142 billion [21][22] - The company anticipates continued growth in fee income and a focus on managing expenses while investing in enterprise initiatives [22] Other Important Information - M&T's CET1 ratio was estimated at 10.84%, reflecting a decline due to share repurchases and increased risk-weighted assets [17] - The company plans to operate with a CET1 ratio of 10.25% to 10.5% in 2026, maintaining flexibility for lending and capital returns [24] Q&A Session Summary Question: Capital ratios and Basel III Endgame proposal - Management indicated that they are open to adjusting the CET1 ratio if regulatory requirements change, with a current comfort level around 10.25% [30][31] Question: Loan growth expectations in commercial real estate - Management noted strong production levels in commercial real estate, with expectations for growth starting in the second quarter of 2026 [36] Question: Deposit environment and competitive landscape - Management emphasized the importance of growing customer deposits alongside loans, with a focus on net new checking accounts [47][48] Question: Fee and expense growth rates - Management projected a core growth rate of about 4% for fees, driven by various business lines, while expenses are expected to be managed closely [55] Question: Credit quality and charge-offs - Management reassured that the increase in 90-day past dues was due to administrative delays and not indicative of deteriorating credit quality [64]

M&T Bank (NYSE:MTB) Q4 2025 Earnings call January 16, 2026 08:00 AM ET Company ParticipantsChristopher McGratty - Managing Director and Head of U.S. Bank ResearchEbrahim Poonawala - Managing Director and Head of North American Banks ResearchRajiv Ranjan - Head of Investor RelationsDaryl Bible - VP, Senior Executive and CFOConference Call ParticipantsKen Usdin - Senior Research AnalystScott Siefers - Managing Director and Senior Equity Research AnalystErika Najarian - Managing Director and Senior Equity Rese ...

Financial Data and Key Metrics Changes - M&T Bank achieved record net income of $2.85 billion and record EPS of $17, with a top quartile return on tangible assets exceeding 1.4% [6][24] - The quarterly dividend was increased by 11%, and 9% of outstanding shares were repurchased, while tangible book value per share grew by 7% [6][24] - Non-accruals decreased by 26%, with the non-accrual percentage of total loans reaching 90 basis points, the lowest since 2007 [6][24] - The efficiency ratio improved from 56.9% to 56% [6][24] Business Line Data and Key Metrics Changes - Fee income grew by 13%, reaching a record of $2.7 billion, with the fee mix as a percentage of revenue increasing from 26% to over 28% [6][24] - Average loans and leases increased by $1.1 billion to $137.6 billion, with commercial loans rising by $0.5 billion to $62.2 billion [9][10] - Non-interest income for the quarter was $696 million, down from $752 million in the linked quarter, with mortgage banking revenues increasing to $155 million [12][13] Market Data and Key Metrics Changes - Investment securities and cash held at the Fed totaled $53.7 billion, representing 25% of total assets [11] - Average total loans rose by $2.4 billion to $165.1 billion, with non-interest-bearing deposits increasing to $44.2 billion [12] Company Strategy and Development Direction - The company is focused on operational excellence and teaming for growth, aiming to create a unified approach to growth across markets and business lines [17][18] - M&T Bank plans to continue investing in enterprise initiatives while managing non-investment spending [21][22] - The outlook for net interest income is projected to be between $7.2 billion and $7.35 billion, with a focus on growing relationship customers [19][20] Management's Comments on Operating Environment and Future Outlook - The economy is showing resilience despite concerns about tariffs and policies, with decent spending growth reported during the holiday season [18] - The company remains cautious about potential economic slowdowns due to weakening labor markets [18] - Management expects full-year average loans to be between $140 billion and $142 billion, with growth anticipated across all main loan portfolios [19][20] Other Important Information - The CET1 ratio was estimated at 10.84%, reflecting a decline due to share repurchases and increased risk-weighted assets [16] - The company is committed to returning excess capital to shareholders while supporting lending and pursuing growth opportunities [23][24] Q&A Session Summary Question: Capital ratios and Basel III Endgame proposal - Management is open to adjusting the CET1 ratio based on regulatory changes and market conditions, indicating potential for a lower ratio if required [25][26] Question: Loan growth expectations in commercial real estate - Management anticipates growth in commercial real estate starting in the second quarter of 2026, with strong performance across various sectors [27][28] Question: Deposit environment and competitive landscape - The company is focused on growing customer deposits while managing competitive pressures, with a strategy to grow operating accounts [32][33] Question: Fee income and expense growth rates - Management expects fee income growth to be around 4%, driven by various business lines, while expenses are projected to be managed closely [36][37] Question: Consumer deposit growth and market density - The company is actively working to grow consumer deposits, particularly in markets like New England and Long Island, with expectations for sustainable growth [59]