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M&T Bank Corporation’s MTB first-quarter 2025 adjusted net operating earnings per share of $3.38 missed the Zacks Consensus Estimate of $3.41. The bottom line compared favorably with earnings of $3.09 per share in the year-ago quarter.
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Results have been adversely affected by a fall in loan balance and a rise in expenses. Nonetheless, a rise in net interest income (NII) and non-interest income supported its financial performance. A decline in provision for credit losses was another positive.
Net income available to common shareholders was $547 million, up 8.3% from the prior-year quarter.
M&T Bank’s Quarterly Revenues & Expenses Rise Y/Y
MTB’s quarterly revenues were $2.31 billion, which missed the Zacks Consensus Estimate by 1.6%. However, the reported figure increased 2.2% year over year.
NII (tax equivalent) rose nearly 1% year over year to $1.71 billion. Our estimate for the metric was $1.75 billion.
Total non-interest income was $611 million, up 5.3% year over year. An increase in trust income, service charges on deposit accounts and mortgage banking revenues mainly caused the uptick. Our estimate for the metric was $606.2 million.
Total non-interest expenses were $1.42 billion, up 1.4% year over year. We projected the metric to be $1.39 billion.
The efficiency ratio was 60.5%, down from 60.8% in the year-earlier quarter. A lower ratio indicates a rise in profitability.
MTB’s Loan Balance Decreases, Deposits Increase
Loans and leases, net of unearned discount, were $134.6 billion as of March 31, 2025, down marginally from the prior quarter. Total deposits rose 2.7% sequentially to $165.4 billion. Our estimate for the loans and leases was $135.6 billion. Our estimate for deposits was $160.9 billion.
M&T Bank’s Credit Quality Improves
Net charge-offs decreased 17.4% to $114 million from the prior-year quarter. Our estimate for the metric was $151.2 million.
The company recorded a provision for credit losses of $130 million, down 35% from the year-ago quarter. Our estimate for the metric was $149.7 million.
Non-performing assets declined 33% year over year to $1.57 billion. Our estimate for the metric was $1.64 billion.
The ratio of non-accrual loans to total net loans was 1.14%, which declined year over year from 1.71%. Our estimate for the metric was pegged at 1.17%.
MTB’s Capital Position & Profitability Ratios Improve Y/Y
M&T Bank’s estimated Common Equity Tier 1 ratio was 11.50%, up from 11.08% as of first-quarter 2024. The tangible equity per share was $111.13, up from $99.54 in the first quarter of 2024.