We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MTB Shares Gain as Q2 Earnings Beat on Strong NII & Fee Income Growth
Read MoreHide Full Article
Key Takeaways
MTB beat Q2 earnings and revenue estimates as NII and non-interest income increased y/y.
MTB posted loan and deposit growth, lower net charge-offs, and improved efficiency and asset quality metrics.
M&T Bank expects 2026 NII of $7.2-$7.35B and fee income of $2.8-$2.85B.
Shares of M&T Bank Corporation (MTB - Free Report) rallied 1.2% in the pre-market trading session on better-than-expected second-quarter 2026 results. The company reported second-quarter net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 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 loan growth. However, higher expenses acted as headwinds.
Net income available to common shareholders was $781 million, up 15% from the prior-year quarter.
M&T Bank’s Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.53 billion, surpassing the Zacks Consensus Estimate of $2.48 billion. The reported figure increased 5.7% year over year.
NII (tax-equivalent) rose 4.8% year over year to $1.80 billion. The increase reflected growth in average loans and investment securities, along with favorable repricing of earning assets and interest-bearing liabilities, including an improved contribution from interest-rate swap agreements.
Total non-interest income was $740 million, up 8.3% year over year. The rise was driven by higher service charges on deposit accounts, trust income, brokerage services income, trading account, and other non-hedging derivative gains, and other revenues from operations.
Total non-interest expenses were $1.35 billion, up 1% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, professional and other services costs, and advertising and marketing expenses.
The efficiency ratio was 52.8%, down from 55.2% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan & Deposit Balances Increase
Total loans were $143.2 billion as of June 30, 2026, up 2.3% from the prior quarter. Total deposits increased 3.1% sequentially to $168.9 billion.
M&T Bank’s Credit Quality Improves
Net charge-offs decreased 25.9% to $80 million from the prior-year quarter.
The company recorded a provision for credit losses of $120 million, down 4% from the year-ago quarter.
Non-performing assets declined 23.2% year over year to $1.23 billion.
The ratio of non-accrual loans to total loans was 0.84%, which declined year over year from 1.16%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.19%, down from 10.99% as of second-quarter 2025. The tangible equity per share was $117.41, up from $112.48 in the second quarter of 2025.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.59% and 18.57%, respectively, compared with 1.44% and 15.54% in the prior-year quarter.
M&T Bank’s Capital Distribution Update
MTB repurchased 2.1 million shares of its common stock for $465 million in the second quarter of 2026.
MTB’s 2026 Outlook
For 2026, M&T Bank expects taxable-equivalent NII of $7.2-$7.35 billion. Fee income is projected between $2.8 billion and $2.85 billion.
GAAP expenses, including intangible amortization, are anticipated between $5.5 billion and $5.6 billion, with management expecting results toward the higher end of the range. Net charge-offs are projected at nearly 37 basis points of average loans, while the taxable-equivalent tax rate is expected to be 24%.
Average loans are expected between $141 billion and $143 billion, supported by continued commercial loan momentum, stabilizing commercial real estate balances, and consumer loan growth. Average deposits are anticipated between $165 billion and $167 billion.
The CET1 capital ratio is expected to be 10-10.5%.
Our View on MTB
Sustained growth in NII and non-interest income is expected to continue supporting M&T Bank’s organic growth. Loan and deposit growth, improving asset quality metrics, and a lower efficiency ratio will likely support its overall performance. However, higher expenses are near-term concerns.
M&T Bank Corporation Price, Consensus and EPS Surprise
Citizens Financial Group (CFG - Free Report) is scheduled to release second-quarter 2026 earnings on July 16.
The Zacks Consensus Estimate for CFG’s quarterly earnings has been unchanged at $1.25 per share over the past seven days. This indicates a 35.9% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report second-quarter 2026 results on July 23.
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 2.6% rise from the prior-year reported number.
View the Zacks #1 Rank List
Image: Bigstock
MTB Shares Gain as Q2 Earnings Beat on Strong NII & Fee Income Growth
Key Takeaways
Shares of M&T Bank Corporation (MTB - Free Report) rallied 1.2% in the pre-market trading session on better-than-expected second-quarter 2026 results. The company reported second-quarter net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 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 loan growth. However, higher expenses acted as headwinds.
Net income available to common shareholders was $781 million, up 15% from the prior-year quarter.
M&T Bank’s Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.53 billion, surpassing the Zacks Consensus Estimate of $2.48 billion. The reported figure increased 5.7% year over year.
NII (tax-equivalent) rose 4.8% year over year to $1.80 billion. The increase reflected growth in average loans and investment securities, along with favorable repricing of earning assets and interest-bearing liabilities, including an improved contribution from interest-rate swap agreements.
Total non-interest income was $740 million, up 8.3% year over year. The rise was driven by higher service charges on deposit accounts, trust income, brokerage services income, trading account, and other non-hedging derivative gains, and other revenues from operations.
Total non-interest expenses were $1.35 billion, up 1% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, professional and other services costs, and advertising and marketing expenses.
The efficiency ratio was 52.8%, down from 55.2% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan & Deposit Balances Increase
Total loans were $143.2 billion as of June 30, 2026, up 2.3% from the prior quarter. Total deposits increased 3.1% sequentially to $168.9 billion.
M&T Bank’s Credit Quality Improves
Net charge-offs decreased 25.9% to $80 million from the prior-year quarter.
The company recorded a provision for credit losses of $120 million, down 4% from the year-ago quarter.
Non-performing assets declined 23.2% year over year to $1.23 billion.
The ratio of non-accrual loans to total loans was 0.84%, which declined year over year from 1.16%.
MTB’s Capital Position Mixed & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 10.19%, down from 10.99% as of second-quarter 2025. The tangible equity per share was $117.41, up from $112.48 in the second quarter of 2025.
The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.59% and 18.57%, respectively, compared with 1.44% and 15.54% in the prior-year quarter.
M&T Bank’s Capital Distribution Update
MTB repurchased 2.1 million shares of its common stock for $465 million in the second quarter of 2026.
MTB’s 2026 Outlook
For 2026, M&T Bank expects taxable-equivalent NII of $7.2-$7.35 billion. Fee income is projected between $2.8 billion and $2.85 billion.
GAAP expenses, including intangible amortization, are anticipated between $5.5 billion and $5.6 billion, with management expecting results toward the higher end of the range. Net charge-offs are projected at nearly 37 basis points of average loans, while the taxable-equivalent tax rate is expected to be 24%.
Average loans are expected between $141 billion and $143 billion, supported by continued commercial loan momentum, stabilizing commercial real estate balances, and consumer loan growth. Average deposits are anticipated between $165 billion and $167 billion.
The CET1 capital ratio is expected to be 10-10.5%.
Our View on MTB
Sustained growth in NII and non-interest income is expected to continue supporting M&T Bank’s organic growth. Loan and deposit growth, improving asset quality metrics, and a lower efficiency ratio will likely support its overall performance. However, higher 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 Banks
Citizens Financial Group (CFG - Free Report) is scheduled to release second-quarter 2026 earnings on July 16.
The Zacks Consensus Estimate for CFG’s quarterly earnings has been unchanged at $1.25 per share over the past seven days. This indicates a 35.9% rise from the prior-year reported number.
Huntington Bancshares Inc. (HBAN - Free Report) is also slated to report second-quarter 2026 results on July 23.
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 2.6% rise from the prior-year reported number.