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MTB Q4 Earnings Beat Estimates on Higher NII & Fee Income, Stock Down
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Key Takeaways
MTB posted Q4 operating EPS of $4.72, topping estimates as revenues rose 3.8% year over year.
Higher NII and non-interest income, along with modest loan and deposit growth, supported results.
M&T Bank's efficiency ratio fell to 55.1% from 56.8% a year ago, signaling improved profitability.
M&T Bank Corporation (MTB - Free Report) reported fourth-quarter 2025 net operating earnings per share of $4.72, which beat the Zacks Consensus Estimate of $4.44. The bottom line compared favorably with earnings of $3.92 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 and higher deposits. A decline in provisions for credit losses was also a tailwind. However, an increase in expenses acted as a headwind. Given the concern, MTB shares lost nearly 1.5% in the early trading session. A full day’s trading session will depict a clearer picture.
Net income available to common shareholders was $718 million, up 11.4% from the prior-year quarter.
For 2025, net operating earnings per share were $17.20, which beat the Zacks Consensus Estimate of $16.68. This compares favorably with $14.88 reported in 2024. The company reported net income available to common shareholders of $2.69 billion, which rose 10.2% year over year.
M&T Bank’s Quarterly Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.47 billion, surpassing the Zacks Consensus Estimate of $2.46 billion. Further, the reported figure increased 3.8% year over year.
Full-year revenues aggregated to $9.7 billion, up 4.4% year over year. Also, the top line matched the Zacks Consensus Estimate.
NII (tax equivalent) rose 2.9% year over year to $1.78 billion.
Total non-interest income was $696 million, up 5.9% year over year. The rise was driven by an increase in almost all components.
Total non-interest expenses were $1.38 billion, up 1.2% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs and professional and other services costs, along with advertising and marketing expenses.
The efficiency ratio was 55.1%, down from 56.8% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan Balance & Deposits Increase
Total loans were $138.7 billion as of Dec. 31, 2025, up 1.3% from the prior quarter. Total deposits rose 2.1% sequentially to $166.9 billion.
M&T Bank’s Credit Quality Improves
Net charge-offs increased 15.6% to $185 million from the prior-year quarter.
The company recorded a provision for credit losses of $125 million, down 10.7% from the year-ago quarter.
Non-performing assets declined 25.4% year over year to $1.29 billion.
The ratio of non-accrual loans to total net loans was 0.90%, which declined year over year from 1.25%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.84%, down from 11.68% as of fourth-quarter 2024. The tangible equity per share was $117.45, up from $109.36 in the fourth quarter of 2024.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.49% and 16.24%, respectively, compared with 1.35% and 14.66% in the prior-year quarter.
M&T Bank’s Capital Distribution Update
MTB repurchased 2.7 million shares of its common stock in accordance with its capital plan for $183.30 million, including the share repurchase excise tax, in the fourth quarter of 2025.
Our View on MTB
Sustained growth in both NII and non-interest income is expected to continue supporting M&T Bank’s organic growth. Additionally, steady loan and deposit growth, along with 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
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2025 earnings on Jan. 20.
The Zacks Consensus Estimate for FITB’s quarterly earnings has remained unchanged at $1.01 per share over the past seven days. This indicates a 12.2% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report fourth-quarter 2025 results on Jan. 22.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share. This implies a 12.3% rise from the prior-year reported number.
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MTB Q4 Earnings Beat Estimates on Higher NII & Fee Income, Stock Down
Key Takeaways
M&T Bank Corporation (MTB - Free Report) reported fourth-quarter 2025 net operating earnings per share of $4.72, which beat the Zacks Consensus Estimate of $4.44. The bottom line compared favorably with earnings of $3.92 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 and higher deposits. A decline in provisions for credit losses was also a tailwind. However, an increase in expenses acted as a headwind. Given the concern, MTB shares lost nearly 1.5% in the early trading session. A full day’s trading session will depict a clearer picture.
Net income available to common shareholders was $718 million, up 11.4% from the prior-year quarter.
For 2025, net operating earnings per share were $17.20, which beat the Zacks Consensus Estimate of $16.68. This compares favorably with $14.88 reported in 2024. The company reported net income available to common shareholders of $2.69 billion, which rose 10.2% year over year.
M&T Bank’s Quarterly Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.47 billion, surpassing the Zacks Consensus Estimate of $2.46 billion. Further, the reported figure increased 3.8% year over year.
Full-year revenues aggregated to $9.7 billion, up 4.4% year over year. Also, the top line matched the Zacks Consensus Estimate.
NII (tax equivalent) rose 2.9% year over year to $1.78 billion.
Total non-interest income was $696 million, up 5.9% year over year. The rise was driven by an increase in almost all components.
Total non-interest expenses were $1.38 billion, up 1.2% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs and professional and other services costs, along with advertising and marketing expenses.
The efficiency ratio was 55.1%, down from 56.8% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan Balance & Deposits Increase
Total loans were $138.7 billion as of Dec. 31, 2025, up 1.3% from the prior quarter. Total deposits rose 2.1% sequentially to $166.9 billion.
M&T Bank’s Credit Quality Improves
Net charge-offs increased 15.6% to $185 million from the prior-year quarter.
The company recorded a provision for credit losses of $125 million, down 10.7% from the year-ago quarter.
Non-performing assets declined 25.4% year over year to $1.29 billion.
The ratio of non-accrual loans to total net loans was 0.90%, which declined year over year from 1.25%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.84%, down from 11.68% as of fourth-quarter 2024. The tangible equity per share was $117.45, up from $109.36 in the fourth quarter of 2024.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.49% and 16.24%, respectively, compared with 1.35% and 14.66% in the prior-year quarter.
M&T Bank’s Capital Distribution Update
MTB repurchased 2.7 million shares of its common stock in accordance with its capital plan for $183.30 million, including the share repurchase excise tax, in the fourth quarter of 2025.
Our View on MTB
Sustained growth in both NII and non-interest income is expected to continue supporting M&T Bank’s organic growth. Additionally, steady loan and deposit growth, along with 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 Quote
Currently, 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 Banks
Fifth Third Bancorp (FITB - Free Report) is scheduled to release fourth-quarter 2025 earnings on Jan. 20.
The Zacks Consensus Estimate for FITB’s quarterly earnings has remained unchanged at $1.01 per share over the past seven days. This indicates a 12.2% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report fourth-quarter 2025 results on Jan. 22.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 39 cents per share. This implies a 12.3% rise from the prior-year reported number.