Latest news with #MTB
Yahoo
17-07-2025
- Business
- Yahoo
MTB Q1 Deep Dive: Margin Expansion and Loan Mix Offset Deposit and CRE Headwinds
Regional banking company M&T Bank (NYSE:MTB) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 4.1% year on year to $2.40 billion. Its GAAP profit of $4.24 per share was 6.3% above analysts' consensus estimates. Is now the time to buy MTB? Find out in our full research report (it's free). M&T Bank (MTB) Q2 CY2025 Highlights: Revenue: $2.40 billion vs analyst estimates of $2.38 billion (4.1% year-on-year growth, 0.6% beat) EPS (GAAP): $4.24 vs analyst estimates of $3.99 (6.3% beat) Market Capitalization: $30.14 trillion StockStory's Take M&T Bank's first quarter results did not meet Wall Street's expectations, with management attributing the outcome primarily to a combination of lower commercial real estate (CRE) loan balances, seasonally lower deposit levels, and a modest decline in net interest income. CFO Daryl Bible highlighted that net interest margin improved 8 basis points, even as average loans declined. He pointed to disciplined deposit pricing, a reduction in higher-cost funding, and strong performance in fee-generating businesses such as mortgage banking and trust services. Additionally, asset quality improved, with lower net charge-offs and a reduction in criticized CRE balances. Management acknowledged a dynamic environment, noting that customer uncertainty around tariffs and broader economic trends led to business investment delays and a pause in some acquisition activity. Looking ahead, M&T Bank's guidance is shaped by a cautious stance on CRE loan origination and a focus on maintaining strong liquidity and capital levels. Management expects loan growth to remain muted, particularly in CRE, while C&I (commercial and industrial) and consumer lending are projected to offset some of these headwinds. CFO Daryl Bible stated, "We remain focused on growing customer deposits at a reasonable cost, while also considering loan growth." The company is also monitoring the impact of macroeconomic uncertainties—especially tariffs and regulatory changes—on customer activity and credit quality. Management emphasized flexibility in expense management and signaled ongoing investments in technology and risk management capabilities to support long-term profitability. Key Insights from Management's Remarks Management credited the quarter's margin expansion to deposit cost discipline and a shift in loan mix, while acknowledging ongoing competitive pressures in CRE and muted deposit growth. Deposit cost management: The bank achieved a decline in interest-bearing deposit costs as it reduced reliance on brokered and wholesale funding, helping offset the impact of lower average deposits and providing a lift to net interest margin. CRE portfolio runoff: CRE balances declined significantly due to elevated payoffs and competition from other lenders, with management reiterating a disciplined approach to new originations and a focus on reducing riskier office exposures. C&I and consumer loan growth: Growth in commercial and industrial (C&I) and consumer portfolios partially offset the CRE decline, supported by momentum in fund banking, corporate institutional lending, and indirect auto finance. Fee income momentum: Non-interest income, including mortgage banking and trust services, remained resilient, and management expects further growth as new subservicing relationships ramp up and service charges perform well. Expense control and capital return: Management continued to tightly manage expenses, highlighted flexibility to adjust spending if needed, and executed substantial share repurchases, while maintaining a CET1 ratio above 11%. Drivers of Future Performance M&T Bank's outlook hinges on balancing muted CRE loan demand, deposit growth, and adaptable expense management amid an uncertain macroeconomic backdrop. CRE loan headwinds: Management expects commercial real estate balances to bottom out by year-end, with muted originations due to competitive pricing and customer hesitancy. The focus remains on selective growth in multifamily and industrial segments to reduce exposure to riskier office loans. Deposit growth and pricing: The company anticipates deposit balances to recover from seasonal lows, with an emphasis on attracting stable, low-cost deposits. CFO Daryl Bible noted that higher deposit levels would be deployed to pay down more expensive liabilities or increase liquidity, depending on loan demand. Expense flexibility and risk management: Management emphasized the ability to adjust expenses if revenue growth slows, with ongoing investments in systems, automation, and risk controls. The bank is closely monitoring portfolios such as retail trade, manufacturing, and non-profits for signs of stress, and remains prepared to adapt if the macroeconomic environment deteriorates. Catalysts in Upcoming Quarters In the coming quarters, the StockStory team will focus on (1) stabilization and eventual growth of CRE and C&I loan balances, (2) trends in deposit growth and the cost of funds, and (3) the trajectory of fee income as mortgage subservicing and trust businesses scale. Monitoring regulatory developments and any shifts in credit quality within key loan portfolios will also be crucial for assessing M&T Bank's performance. M&T Bank currently trades at $191.43, down from $197.03 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). High Quality Stocks for All Market Conditions Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-07-2025
- Business
- Yahoo
M&T Bank Corp (MTB) Q2 2025 Earnings Call Highlights: Strong Fee Income Growth and Share ...
Share Repurchases: Executed $1.1 billion in share repurchases in Q2. Tangible Book Value Per Share: Increased by 1%. Fee Income Growth: Increased by 11% since Q2 2024, excluding security gains and losses and other notable items. Efficiency Ratio: 55.2% for the second quarter. Net Charge-Offs: 32 basis points, below full-year expectations. Diluted GAAP Earnings Per Share: $4.24, up from $3.32 in the prior quarter. Net Income: $116 million compared to $584 million in the previous quarter. Return on Assets (ROA): 1.37%. Return on Common Equity (ROCE): 10.39%. Net Operating Income: $724 million, up from $594 million in the prior quarter. Net Operating Earnings Per Share: $4.28, up from $3.38 in the prior quarter. Net Interest Income: $1.72 billion, a 1% increase from the previous quarter. Net Interest Margin: 3.62%, a decrease of 4 basis points from the prior quarter. Average Loans and Leases: Increased by $0.6 billion to $135.4 billion. Average Total Deposits: Rose by $2.2 billion to $163.4 billion. Non-Interest Income: $683 million, up from $611 million in the previous quarter. Non-Interest Expenses: $1.34 billion, a decrease of $79 million from the prior quarter. Allowance for Loan Losses: 1.61% of total loans. Criticized Loans: Decreased by $1 billion or 11%. Common Equity Tier 1 (CET1) Ratio: Estimated at 10.98% at the end of Q2. Warning! GuruFocus has detected 4 Warning Sign with MTB. Release Date: July 16, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points M&T Bank Corp (NYSE:MTB) executed $1.1 billion in share repurchases in the second quarter, enhancing shareholder value. The bank reported a 1% growth in tangible book value per share, indicating strong financial health. Fee income grew by 11% year-over-year, showcasing robust performance in non-interest income streams. Asset quality improved with an 11% reduction in commercial criticized balances, reflecting effective risk management. M&T Bank Corp (NYSE:MTB) achieved a lower stress capital buffer (SCB) of 2.7%, down from 3.8%, demonstrating resilience and strong earnings power. Negative Points Net interest margin decreased by 4 basis points to 3.62%, primarily due to higher costs on interest-bearing deposits and long-term debt. Non-accrual loans increased by $33 million, driven by higher CNI non-accruals, indicating some asset quality concerns. The allowance for loan losses as a percentage of total loans decreased, which may suggest potential under-provisioning. The bank's CET1 ratio declined from 11.5% to 10.98% due to increased capital distributions, including share repurchases. M&T Bank Corp (NYSE:MTB) lowered its net interest income outlook due to continued softness in commercial and CRE loan growth. Q & A Highlights Q: Can you expand on the loan dynamics, particularly regarding the CRE portfolio and its future growth? A: Daryl Bible, CFO, explained that the CRE pipeline is building, with June being the best month of the year so far. They have over $5 billion in the pipeline, indicating a positive direction. However, due to recent runoff, growing the CRE portfolio in the next quarter will be challenging, but there is potential for growth by the end of the year. Q: What is the right level of capital for M&T to hold, and how do you balance this with potential uses? A: Daryl Bible stated that given current market uncertainties, such as tariffs and geopolitical conditions, M&T aims to operate within a capital range of 10.75% to 11%. The long-term target is 10%, but the current environment justifies maintaining a higher capital level. Q: Can you provide insights into the strong performance of the trust income and fee income guidance? A: Daryl Bible highlighted that the trust income has been strong due to investments in Europe and significant wins in that space. The corporate trust business is growing well, and other fee income areas like mortgage banking and treasury management are also performing strongly. Q: How does M&T view the need for scale in competing against mega banks, especially in retail deposit growth? A: Daryl Bible emphasized that M&T's business model focuses on serving communities and bringing the full bank to customers within those communities. They do not feel the need to grow larger to compete with mega banks, as their efficiency and simplicity in operations provide a competitive advantage. Q: What are your thoughts on the potential impact of stablecoins on your payments business and deposit gathering? A: Daryl Bible mentioned that M&T is monitoring the development of stablecoins as a potential payment rail. They are open to partnering with others to offer digital currency services if there is customer demand, focusing on ease of use and cost-effectiveness compared to current systems. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
17-07-2025
- Business
- Business Insider
Wells Fargo Reaffirms Their Sell Rating on M&T Bank (MTB)
Wells Fargo analyst Mike Mayo maintained a Sell rating on M&T Bank yesterday and set a price target of $185.00. The company's shares closed yesterday at $192.52. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Mayo is a 5-star analyst with an average return of 14.8% and a 69.75% success rate. Mayo covers the Financial sector, focusing on stocks such as Citigroup, Bank of America, and State Street. M&T Bank has an analyst consensus of Moderate Buy, with a price target consensus of $211.81. Based on M&T Bank's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $3.17 billion and a net profit of $584 million. In comparison, last year the company earned a revenue of $3.3 billion and had a net profit of $531 million Based on the recent corporate insider activity of 98 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MTB in relation to earlier this year. Last month, Robert Sadler, a Director at MTB sold 6,700.00 shares for a total of $1,229,584.00.
Yahoo
14-07-2025
- Business
- Yahoo
Higher Fee Income and NII to Aid M&T Bank's Q2 Earnings
M&T Bank Corporation MTB is slated to report second-quarter 2025 results on July 16, before the opening bell. The company is expected to have registered year-over-year increases in quarterly revenues and the last reported quarter, M&T Bank's results were affected by a fall in loan balance and a rise in expenses. Nonetheless, a rise in net interest income (NII), higher non-interest income and lower provision for credit losses supported its financial earnings surpassed the consensus estimate in three of the trailing four quarters and missed once, with the average negative earnings surprise being 6.67%. M&T Bank Corporation price-eps-surprise | M&T Bank Corporation Quote Let us discuss the factors that are likely to have impacted the company's second-quarter performance. Loans & NII: An uncertain macroeconomic backdrop because of Trump's tariff plans is likely to have led to a decent lending scenario. Per the Fed's latest data, the demand for commercial and industrial and real estate loans was strong, while consumer loans were stable sequentially during the MTB's management expects second-quarter 2025 average loans to rise modestly. The increase in loans is likely to have benefited average interest-earning assets growth in the second quarter. The Zacks Consensus Estimate for average interest-earning assets is pegged at $191.8 billion, indicating a 1.4% increase from the prior-quarter reported figure. Our model estimate is pegged at $195.7 Federal Reserve kept interest rates unchanged at 4.25-4.5% in the second quarter. As such, MTB's NII is not likely to have improved significantly amid higher funding cost pressures, partially offset by modest loan projects a slightly higher NII for the second quarter of 2025. The Zacks Consensus Estimate for NII (on a tax-equivalent basis) is pegged at 1.75 billion, indicating a 3.1% increase from the prior quarter's reported number. Our estimate is in line with the consensus Income: Management expects to register a higher average total deposit in the second quarter of 2025, driven by a rise in customer deposits. This is likely to have aided revenues from service charges on deposit accounts to some extent. The consensus estimate for the metric is pegged at $135.9 million, indicating a 2.2% rise from the prior quarter's reported figure. Our estimate for the metric is $134.8 interest rate cuts by the central bank in 2024, mortgage rates did not come down significantly. The second quarter saw rates fluctuate, but they remained in the mid-to-upper 6% range. Hence, refinancing activities and origination volume were decent. Thus, mortgage banking fees are likely to have witnessed some improvement. This might have supported the company's mortgage banking revenue growth in the quarter to be Zacks Consensus Estimate for mortgage banking is pegged at $128 million, indicating an 8.5% rise from the prior quarter's reported level. We expect the metric to be $115.9 million. The consensus estimate for brokerage services income of $32.8 million indicates a rise of 2.4% from that reported in the first quarter of 2025. We expect the metric to be $32 Zacks Consensus Estimate for trust income of $182.7 million indicates an increase of 3.2% sequentially. Our model predicts the metric to be $178.3 Zacks Consensus Estimate for total non-interest income is pegged at $641 million, indicating a 4.9% decline from the prior-quarter's actual. Our model projects the metric to be $632.6 Management expects the second-quarter expenses to decline sequentially primarily due to lower seasonal compensation. Our model projects total expenses to be $1.37 billion for the second quarter of 2025, indicating a sequential decline of 3.4%. Per our proven model, the chances of M&T Bank beating estimates this time are high. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case can uncover the best stocks before they are reported with our Earnings ESP ESP: The Earnings ESP for M&T Bank is +0.12%.Zacks Rank: M&T Bank currently carries a Zacks Rank of Zacks Consensus Estimate for MTB's second-quarter earnings of $4.03 per share has remained unchanged over the past seven days. The figure indicates an increase of 6.3% from the year-ago number. Stay up-to-date with all quarterly releases: See Zacks Earnings consensus estimate for revenues is pegged at $2.39 billion, implying a rise of 3.6% from the prior-year reported level. Here are some other bank stocks, which, according to our model, have the right combination of elements to post an earnings beat this time Earnings ESP for Texas Capital Bancshares, Inc. TCBI is +2.23% and it carries a Zacks Rank of 3 at present. TCBI is slated to report its second-quarter 2025 results on July 17. You can see the complete list of today's Zacks #1 Rank stocks the past seven days, the Zacks Consensus Estimate for Texas Capital Bancshares quarterly earnings has remained unchanged, indicating a jump of 60% from the year-ago reported Bankers, Inc. CFR has an Earnings ESP of +4.45% and a Zacks Rank of 2 at present. CFR is expected to release its second-quarter 2025 earnings on July earnings estimates for Cullen/Frost have been revised upward in the past seven days, indicating an increase of 3.2% from the year-ago reported figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report M&T Bank Corporation (MTB) : Free Stock Analysis Report Texas Capital Bancshares, Inc. (TCBI) : Free Stock Analysis Report Cullen/Frost Bankers, Inc. (CFR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
M&T Bank Corporation (MTB) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
M&T Bank Corporation (MTB) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 16. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $4.03 per share in its upcoming report, which represents a year-over-year change of +6.3%. Revenues are expected to be $2.39 billion, up 3.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.04% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For M&T Bank, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.12%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that M&T Bank will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that M&T Bank would post earnings of $3.41 per share when it actually produced earnings of $3.38, delivering a surprise of -0.88%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. M&T Bank appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. State Street Corporation (STT), another stock in the Zacks Banks - Major Regional industry, is expected to report earnings per share of $2.38 for the quarter ended June 2025. This estimate points to a year-over-year change of +10.7%. Revenues for the quarter are expected to be $3.37 billion, up 5.7% from the year-ago quarter. The consensus EPS estimate for State Street has been revised 2.6% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.08%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that State Street will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report M&T Bank Corporation (MTB) : Free Stock Analysis Report State Street Corporation (STT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
