M&T Bank Corporation (MTB) Earnings & Analysis

Latest quarter

M&T Bank reported third-quarter revenue of $3.4 billion, with a year-over-year change of −0.64%. On the basis used for the consensus, revenue was $2.5 billion against an estimate of $2.5 billion, a 0.51% beat despite the rounded figures matching. Adjusted earnings per share on that consensus basis were $5.08, above the $4.98 estimate.

M&T reported diluted earnings per share of $5.04, compared with $4.82 a year earlier. The bank’s noninterest income fell 1% year over year to $743 million, while noninterest expense increased 2% to $1.39 billion; the company attributed higher operating expenses to technology infrastructure spending.

M&T’s gross margin was 74.4%, compared with 73.2% a year earlier, while its operating margin was 29.6%, compared with 29.9%.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the third-quarter call, CFO Daryl Bible said loan pricing was up about 10 basis points in the quarter. He also said M&T would not sacrifice loan structure to pursue lending volume.

Bible described increases in criticized assets as idiosyncratic, particularly in certain auto leasing and franchise credits.

Guidance

Bible said asset repricing would continue to support yields in coming quarters. He also expected criticized loan levels to bounce along the bottom, with increases concentrated in certain auto leasing and franchise credits.