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NEW YORK - On Thursday, M&T Bank Corporation (NYSE:MTB) reported third quarter earnings that exceeded analyst expectations, driven by strong fee income and improved credit quality.
The bank’s stock rose 0.76% in pre-market trading following the announcement.
The Buffalo-based lender posted adjusted earnings per share of $4.87 for the third quarter, significantly above the analyst estimate of $4.42. Revenue reached $2.51 billion, surpassing the consensus forecast of $2.44 billion.
Net income for the quarter totaled $792 million, a 10% increase from $721 million in the same period last year. Taxable-equivalent net interest income rose 2% YoY to $1.77 billion, with net interest margin expanding to 3.68% from 3.62% a year earlier.
Noninterest income jumped 24% YoY to $752 million, boosted by a $28 million distribution related to the company’s 2023 sale of its Collective Investment Trust business and a $20 million distribution from its investment in Bayview Lending Group.
"M&T’s businesses generated strong fee income in 2025 and contributed to M&T’s earnings growth in the recent quarter," said Daryl N. Bible, M&T’s Chief Financial Officer. "Our improved credit quality and loan growth each reflect the dedication of our teams to prudent lending in service of our customers and communities."
The bank’s credit quality showed improvement, with the allowance for loan losses as a percentage of total loans declining to 1.58% from 1.62% a year ago. Nonaccrual loans decreased 21% YoY to $1.51 billion.
Total loans increased 1% YoY to $137 billion, with consumer loans growing 14% and residential real estate loans rising 7%, partially offset by a 16% decline in commercial real estate loans.
During the quarter, M&T repurchased 2.1 million shares of its common stock for a total cost of $409 million and maintained a Common Equity Tier 1 capital ratio of 10.99%.
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