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M&T Bank Q1 Earnings Beat on Strong Y/Y NII & Fee Income Growth
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Key Takeaways
MTB Q1 EPS of $4.18 beat estimates and rose from $3.38 a year ago on higher NII and fee income.
MTB's revenue grew 5.8% to $2.44B, with non-interest income up 12.8% and NII rising 3.4%.
MTB reported modest loan growth, while deposits declined and provisions for credit losses increased.
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
Results were aided by higher net interest income (NII) and a rise in non-interest income 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.
Net income available to common shareholders was $620 million, up 13.3% from the prior-year quarter.
M&T Bank’s Quarterly Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.44 billion, surpassing the Zacks Consensus Estimate of $2.43 billion. Further, the reported figure increased 5.8% year over year.
NII (tax equivalent) rose 3.4% year over year to $1.75 billion.
Total non-interest income was $689 million, up 12.8% year over year. The rise was driven by an increase in almost all components.
Total non-interest expenses were $1.44 billion, up 1.6% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, along with professional and other services costs.
The efficiency ratio was 58.3%, down from 60.5% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan Balance Increases, Deposits Decrease
Total loans were $139.9 billion as of March 31, 2026, up nearly 1% from the prior quarter. Total deposits declined 1.8% sequentially to $163.7 billion.
M&T Bank’s Credit Quality: Mixed Bag
Net charge-offs decreased 7.8% to $105 million from the prior-year quarter.
The company recorded a provision for credit losses of $140 million, up 7.7% from the year-ago quarter.
Non-performing assets declined 19.5% year over year to $1.27 billion.
The ratio of non-accrual loans to total net loans was 0.89%, which declined year over year from 1.14%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.33%, down from 11.50% as of first-quarter 2025. The tangible equity per share was $115.96, up from $111.13 in the first quarter of 2025.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.33% and 14.51%, respectively, compared with 1.21% and 12.53% in the prior-year quarter.
M&T Bank’s Capital Distribution Update
MTB repurchased 5.5 million shares of its common stock in accordance with its capital plan for $1.25 billion in the first quarter of 2026.
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, modest loan growth and improving asset quality metrics will likely support its overall performance. However, declining deposit balances, higher provisions for credit losses and elevated expenses are near-term concerns.
M&T Bank Corporation Price, Consensus and EPS Surprise
Citizens Financial Group (CFG - Free Report) is scheduled to release first-quarter 2026 earnings on April 16.
The Zacks Consensus Estimate for CFG’s quarterly earnings has remained unchanged at $1.10 per share over the past seven days. This indicates a 42.8% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report first-quarter 2026 results on April 23.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 36 cents per share. This implies a 5.9% rise from the prior-year reported number.
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M&T Bank Q1 Earnings Beat on Strong Y/Y NII & Fee Income Growth
Key Takeaways
M&T Bank Corporation (MTB - Free Report) reported first-quarter 2026 net operating earnings per share of $4.18, which beat the Zacks Consensus Estimate of $4.02. The bottom line compared favorably with earnings of $3.38 per share in the year-ago quarter.
Results were aided by higher net interest income (NII) and a rise in non-interest income 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.
Net income available to common shareholders was $620 million, up 13.3% from the prior-year quarter.
M&T Bank’s Quarterly Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.44 billion, surpassing the Zacks Consensus Estimate of $2.43 billion. Further, the reported figure increased 5.8% year over year.
NII (tax equivalent) rose 3.4% year over year to $1.75 billion.
Total non-interest income was $689 million, up 12.8% year over year. The rise was driven by an increase in almost all components.
Total non-interest expenses were $1.44 billion, up 1.6% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, along with professional and other services costs.
The efficiency ratio was 58.3%, down from 60.5% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan Balance Increases, Deposits Decrease
Total loans were $139.9 billion as of March 31, 2026, up nearly 1% from the prior quarter. Total deposits declined 1.8% sequentially to $163.7 billion.
M&T Bank’s Credit Quality: Mixed Bag
Net charge-offs decreased 7.8% to $105 million from the prior-year quarter.
The company recorded a provision for credit losses of $140 million, up 7.7% from the year-ago quarter.
Non-performing assets declined 19.5% year over year to $1.27 billion.
The ratio of non-accrual loans to total net loans was 0.89%, which declined year over year from 1.14%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.33%, down from 11.50% as of first-quarter 2025. The tangible equity per share was $115.96, up from $111.13 in the first quarter of 2025.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.33% and 14.51%, respectively, compared with 1.21% and 12.53% in the prior-year quarter.
M&T Bank’s Capital Distribution Update
MTB repurchased 5.5 million shares of its common stock in accordance with its capital plan for $1.25 billion in the first quarter of 2026.
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, modest loan growth and improving asset quality metrics will likely support its overall performance. However, declining deposit balances, higher provisions for credit losses and elevated expenses 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
Citizens Financial Group (CFG - Free Report) is scheduled to release first-quarter 2026 earnings on April 16.
The Zacks Consensus Estimate for CFG’s quarterly earnings has remained unchanged at $1.10 per share over the past seven days. This indicates a 42.8% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report first-quarter 2026 results on April 23.
Over the past seven days, the Zacks Consensus Estimate for HBAN’s quarterly earnings has been unchanged at 36 cents per share. This implies a 5.9% rise from the prior-year reported number.