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Why Is M&T Bank (MTB) Down 5.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for M&T Bank Corporation (MTB - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is M&T Bank due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
M&T Bank Q1 Earnings Beat on Strong Y/Y NII & Fee Income Growth
M&T Bank 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 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.
Revenues & Expenses Rise Y/Y
The company’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.
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.
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%.
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.
Outlook
2026
Management projects NII (tax equivalent basis) to be $7.2–$7.35 billion. The company expects NIM to be in the high 3.60% range, revised downward from the prior expectation of the low 3.70% range.
Non-interest income is anticipated between $2.68 billion and $2.77 billion, revised upward from the prior projection of $2.67 billion to $2.77 billion. The company expects the metric to be at the high end of the range, driven by broad-based growth across fee types and business lines.
The company expects expenses (GAAP), including intangible amortization, to be $5.5–$5.6 billion. The metric is projected at the high end of the range, reflecting continued investment in enterprise initiatives and well-managed non-investment spend.
The company expects average loan and lease balances to be $140 billion to $142 billion. Average total deposit balances are anticipated to be $165–$167 billion.
The NCO rate is projected to be around 40 bps.
CET 1 ratio is now expected to be around 10%, revised downward from the prior range of 10.25% to 10.5%.
The tax rate is anticipated to be around 24%, narrowed from the prior guidance of 24% to 24.5% for 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, M&T Bank has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, M&T Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is M&T Bank (MTB) Down 5.2% Since Last Earnings Report?
It has been about a month since the last earnings report for M&T Bank Corporation (MTB - Free Report) . Shares have lost about 5.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is M&T Bank due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
M&T Bank Q1 Earnings Beat on Strong Y/Y NII & Fee Income Growth
M&T Bank 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 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.
Revenues & Expenses Rise Y/Y
The company’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.
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.
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%.
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.
Outlook
2026
Management projects NII (tax equivalent basis) to be $7.2–$7.35 billion. The company expects NIM to be in the high 3.60% range, revised downward from the prior expectation of the low 3.70% range.
Non-interest income is anticipated between $2.68 billion and $2.77 billion, revised upward from the prior projection of $2.67 billion to $2.77 billion. The company expects the metric to be at the high end of the range, driven by broad-based growth across fee types and business lines.
The company expects expenses (GAAP), including intangible amortization, to be $5.5–$5.6 billion. The metric is projected at the high end of the range, reflecting continued investment in enterprise initiatives and well-managed non-investment spend.
The company expects average loan and lease balances to be $140 billion to $142 billion. Average total deposit balances are anticipated to be $165–$167 billion.
The NCO rate is projected to be around 40 bps.
CET 1 ratio is now expected to be around 10%, revised downward from the prior range of 10.25% to 10.5%.
The tax rate is anticipated to be around 24%, narrowed from the prior guidance of 24% to 24.5% for 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, M&T Bank has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, M&T Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.