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

M&T Bank Corporation MTB reported third-quarter 2025 adjusted net operating earnings per share of $4.87, which beat the Zacks Consensus Estimate of $4.40. The bottom line compared favorably with earnings of $4.08 per share in the year-ago quarter..Results were aided by higher non-interest income and a rise in net interest income (NII) on a year-over-year basis, along with modest loan growth. However, a decline in deposits, higher provisions for credit losses and elevated expenses acted as headwinds. In light of these negatives, shares of MTB are trending 2.8% lower in the early market trading session today.Net income available to common shareholders was $754 million, up 11.8% from the prior-year quarter.M&T Bank’s Quarterly Revenues & Expenses Rise Y/YMTB’s quarterly revenues were $2.51 billion, surpassing the Zacks Consensus Estimate of $2.44 billion. Further, the reported figure increased 7.7% year over year.NII (tax equivalent) rose 2% year over year to $1.76 billion. Our estimate for the metric was $1.77 billion.Total non-interest income was $752 million, up 24.1% year over year. The rise was driven by an increase in almost all components. Our estimate for the metric was $667.4 million.Total non-interest expenses were $1.36 billion, up 4.6% year over year. The increase was due to higher salaries and employee benefits costs, equipment and net occupancy expenses and outside data processing and software costs, along with other costs of operations. We projected the metric to be $1.37 billion.The efficiency ratio was 53.6%, down from 55.0% in the year-earlier quarter. A lower ratio indicates a rise in profitability.MTB’s Loan Balance Increases, Deposits DecreaseTotal loans were $136.9 billion as of Sept. 30, 2025, up slightly from the prior quarter. Total deposits fell marginally to $163.4 billion on sequential basis. Our estimate for loans and leases was $136 billion. Our estimate for deposits was $163.9 billion.M&T Bank’s Credit Quality: Mixed BagNet charge-offs increased 21.6% to $146 million from the prior-year quarter. Our estimate for the metric was $119.6 million.The company recorded a provision for credit losses of $125 million, up 4.1% from the year-ago quarter. Our estimate for the metric was $126.7 million.Non-performing assets declined 21.1% year over year to $1.55 billion. Our estimate for the metric was $1.52 billion.The ratio of non-accrual loans to total net loans was 1.10%, which declined year over year from 1.42%. Our estimate for the metric was pegged at 1.08%.MTB’s Capital Position Mixed & Profitability Ratios Improve Y/YM&T Bank’s estimated Common Equity Tier 1 ratio was 10.99%, down from 11.54% as of third-quarter 2024. The tangible equity per share was $115.31, up from $107.97 in the third quarter of 2024.The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.56% and 17.13% respectively, compared with 1.45% and 15.47% in the prior-year quarter.M&T Bank’s Capital Distribution UpdateMTB repurchased 2.1 million shares of its common stock in accordance with its capital plan for $193.46 million, including the share repurchase excise tax, in the third quarter of 2025.Our View on MTBSustained growth in both NII and non-interest income is expected to continue supporting M&T Bank’s organic growth. Additionally, steady loan growth and improving asset quality will likely strengthen its overall performance. However, higher expenses and limited loan portfolio diversification are near-term concerns.M&T Bank Corporation Price, Consensus and EPS Surprise M&T Bank Corporation price-consensus-eps-surprise-chart | M&T Bank Corporation QuoteCurrently, M&T Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Release Dates of Other Major BanksFifth Third Bancorp FITB is scheduled to release third-quarter 2025 earnings on Oct. 17.The consensus estimate for FITB’s quarterly earnings has been revised downward to 87 cents per share over the past seven days. This indicates a 2.3% rise from the prior-year reported number.Huntington Bancshares Inc. HBAN is also slated to report third-quarter 2025 results on Oct. 17.Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 38 cents per share. 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Click to get this free report Fifth Third Bancorp (FITB): Free Stock Analysis Report M&T Bank Corporation (MTB): Free Stock Analysis Report Huntington Bancshares Incorporated (HBAN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks