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M&T Bank (MTB)
NYSE:MTB
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M&T Bank (MTB) AI Stock Analysis

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MTB

M&T Bank

(NYSE:MTB)

Rating:75Outperform
Price Target:
$215.00
â–²(6.43% Upside)
M&T Bank's strong financial performance and positive earnings call are the most significant factors driving the score. While technical analysis shows mixed signals, the bank's valuation and recent corporate events support a favorable outlook.
Positive Factors
Capital Return
M&T Bank is set for substantial stock buybacks and a higher dividend, which are expected to drive up the stock's value.
Loan Performance
End-of-period loan growth was stronger than expected, and credit metrics were solid, leading to a lower provision.
Stress Test Performance
M&T Bank's performance in the stress test exceeded expectations, leading to a significant reduction in capital requirements.
Negative Factors
Guidance Update
The guidance update included a tweak to the low end of the NII range, indicating a need for improvement.
Net Interest Income
Net interest income (NII) came in softer than expected on a margin miss, which will likely be a focal point.

M&T Bank (MTB) vs. SPDR S&P 500 ETF (SPY)

M&T Bank Business Overview & Revenue Model

Company DescriptionM&T Bank Corporation operates as a bank holding company that provides commercial and retail banking services. The company's Business Banking segment offers deposit, lending, cash management, and other financial services to small businesses and professionals. Its Commercial Banking segment provides deposit products, commercial lending and leasing, letters of credit, and cash management services for middle-market and large commercial customers. The company's Commercial Real Estate segment originates, sells, and services commercial real estate loans; and offers deposit services. Its Discretionary Portfolio segment provides deposits; securities, residential real estate loans, and other assets; and short and long term borrowed funds, as well as foreign exchange services. The company's Residential Mortgage Banking segment offers residential real estate loans for consumers and sells those loans in the secondary market; and purchases servicing rights to loans originated by other entities. Its Retail Banking segment offers demand, savings, and time accounts; consumer installment loans, automobile and recreational finance loans, home equity loans and lines of credit, and credit cards; mutual funds and annuities; and other services. The company also provides trust and wealth management; fiduciary and custodial; insurance agency; institutional brokerage and securities; and investment management services. It offers its services through banking offices, business banking centers, telephone and internet banking, and automated teller machines. As of December 31, 2021, the company operates 688 domestic banking offices in New York State, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia; and a full-service commercial banking office in Ontario, Canada. M&T Bank Corporation was founded in 1856 and is headquartered in Buffalo, New York.
How the Company Makes MoneyM&T Bank generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits and borrowings. The bank offers various loan products, including commercial loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees associated with services such as account maintenance, transaction processing, wealth management, and investment services. Additionally, M&T Bank benefits from strategic partnerships with other financial institutions and technology providers that enhance its service offerings and operational efficiency. The bank's revenue model is further supported by its focus on maintaining a strong loan portfolio and expanding its customer base through targeted marketing and community engagement.

M&T Bank Earnings Call Summary

Earnings Call Date:Jul 16, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in stress test outcomes, share repurchases, fee income growth, and improved asset quality. However, these positives were tempered by challenges such as a decline in net income, a decrease in net interest margin, and issues in the CRE segment. The bank's focus on maintaining strong liquidity and managing expenses effectively is noteworthy.
Q2-2025 Updates
Positive Updates
Successful Stress Test Outcome
The SCB declined from 3.8% to 2.7%, showcasing the resiliency and strength of M&T Bank's earnings and risk management.
Share Repurchases and Value Growth
Executed $1.1 billion in share repurchases and grew tangible book value per share by 1%.
Fee Income Growth
Fee income grew 11% since the second quarter of 2024, excluding security gains and losses.
Improved Asset Quality
A $1 billion or 11% reduction in commercial criticized balances, with net charge-offs at 32 basis points.
C&I and Specialty Segments Growth
Commercial loans increased by $1.1 billion, driven by growth in C&I, mortgage warehouse, and fund banking.
Strong Liquidity Position
Investment securities and cash held at the Fed totaled $54.9 billion, representing 26% of total assets.
Positive Operating Leverage
Non-interest expenses decreased by $79 million from the prior quarter, with an efficiency ratio of 55.2%.
Negative Updates
Decline in Net Income
Net income decreased to $116 million from $584 million in the linked quarter.
Net Interest Margin Decline
The net interest margin decreased by four basis points from the prior quarter.
Continued CRE Loan Decline
CRE loans declined 4% to $25.3 billion, reflecting continued payoffs and paydowns.
Increase in Non-Accrual Loans
Non-accrual loans increased by $33 million or 2% to $1.6 billion.
Company Guidance
During M&T Bank Corporation's Second Quarter 2025 Earnings Conference Call, CFO Daryl Bible provided comprehensive guidance, highlighting several key metrics. The bank executed $1.1 billion in share repurchases and achieved a 1% growth in tangible book value per share. Average residential mortgage and consumer loans rose by $1.1 billion, while fee income increased by 11% year-over-year, excluding notable items. The efficiency ratio improved to 55.2%, reflecting controlled expenses. Asset quality showed progress with an 11% reduction in commercial criticized balances, despite a slight increase in non-accrual loans. The bank's CET1 ratio stood at an estimated 10.98%. The full-year outlook includes expectations for net interest income to reach $7 billion to $7.15 billion and average loan growth between $135 billion and $137 billion. The bank remains focused on maintaining strong liquidity and capital positions, with ongoing efforts to enhance shareholder value and community service.

M&T Bank Financial Statement Overview

Summary
M&T Bank exhibits a strong financial position with consistent profitability and effective cash flow management. Its balance sheet indicates a prudent approach to leverage, although the liabilities require close monitoring. The company demonstrates resilience in maintaining stable margins and generating cash, positioning it well for future growth opportunities.
Income Statement
80
Positive
M&T Bank shows strong profitability with a consistent gross profit margin above 60% over the years. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 66% and a net profit margin of 19.89%, reflecting solid cost management and profitability. However, revenue growth has been volatile, with a significant spike in 2023, which was not sustained in 2024. EBIT and EBITDA margins remain robust, suggesting efficient operations.
Balance Sheet
75
Positive
The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.42 in the TTM, indicating manageable leverage. The equity ratio stands at 13.78%, reflecting a sound financial structure. Return on equity is strong at 9.11%, demonstrating effective use of equity to generate profits. However, the total liabilities present a potential risk if not managed well.
Cash Flow
78
Positive
The cash flow statement highlights healthy free cash flow generation, with a TTM free cash flow growth rate of 1.09%. The operating cash flow to net income ratio is 1.38, indicating efficient cash generation from operations. The free cash flow to net income ratio is also favorable at 1.30, supporting the bank's capacity to reinvest and manage its capital expenditures without relying heavily on debt.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.40B12.51B8.44B6.08B6.28B
Gross Profit8.62B8.75B7.50B6.04B5.15B
EBITDA3.82B4.12B3.05B2.78B2.09B
Net Income2.59B2.74B1.99B1.86B1.35B
Balance Sheet
Total Assets208.10B208.26B200.73B155.11B142.60B
Cash, Cash Equivalents and Short-Term Investments35.33B40.35B37.35B47.22B30.04B
Total Debt13.66B13.52B7.52B3.53B4.44B
Total Liabilities179.08B181.31B175.41B137.20B126.41B
Stockholders Equity29.03B26.96B25.32B17.90B16.19B
Cash Flow
Free Cash Flow3.39B3.65B4.36B2.57B616.90M
Operating Cash Flow3.61B3.90B4.57B2.71B789.19M
Investing Cash Flow-550.00M-7.87B16.59B-13.63B-22.02B
Financing Cash Flow-2.88B4.18B-20.98B10.70B21.35B

M&T Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price202.02
Price Trends
50DMA
193.46
Positive
100DMA
183.46
Positive
200DMA
187.98
Positive
Market Momentum
MACD
1.97
Negative
RSI
64.70
Neutral
STOCH
89.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTB, the sentiment is Positive. The current price of 202.02 is above the 20-day moving average (MA) of 191.38, above the 50-day MA of 193.46, and above the 200-day MA of 187.98, indicating a bullish trend. The MACD of 1.97 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTB.

M&T Bank Risk Analysis

M&T Bank disclosed 32 risk factors in its most recent earnings report. M&T Bank reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

M&T Bank Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$29.78B14.0011.58%3.25%1.90%2.87%
77
Outperform
$22.13B15.466.48%3.24%-3.68%25.31%
77
Outperform
$24.16B12.4211.59%3.65%2.94%20.85%
75
Outperform
$31.28B12.829.47%2.70%0.69%14.79%
73
Outperform
$25.64B12.8710.43%3.48%6.06%28.03%
69
Neutral
$21.16B1,663.641.02%4.23%-12.30%-108.78%
68
Neutral
$17.84B12.0310.32%3.73%9.70%0.76%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MTB
M&T Bank
202.02
36.81
22.28%
FITB
Fifth Third Bancorp
45.51
4.81
11.82%
HBAN
Huntington Bancshares
17.80
3.59
25.26%
KEY
KeyCorp
19.39
3.11
19.10%
RF
Regions Financial
27.41
5.16
23.19%
CFG
Citizens Financial
51.90
10.84
26.40%

M&T Bank Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
M&T Bank Closes $750M Subordinated Notes Offering
Positive
Jul 30, 2025

On July 30, 2025, M&T Bank Corporation successfully closed a public offering of $750 million in 5.400% Fixed Rate Reset Subordinated Notes, Series B, due in 2035. This move is part of M&T’s strategic financial operations, potentially impacting its market positioning and offering opportunities for stakeholders.

The most recent analyst rating on (MTB) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

Financial Disclosures
M&T Bank Reports Strong Q2 2025 Financial Results
Positive
Jul 16, 2025

On July 16, 2025, M&T Bank Corporation announced its second quarter 2025 financial results, reporting a net income of $716 million, equating to $4.24 per diluted share. This performance reflects a notable improvement from the previous quarter, driven by increased taxable-equivalent net interest income and favorable asset repricing, which positively impacts the company’s financial standing and shareholder value.

The most recent analyst rating on (MTB) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
M&T Bank Closes $750M Senior Notes Offering
Positive
Jun 17, 2025

On June 17, 2025, M&T Bank Corporation successfully closed a public offering of $750 million in Senior Medium-Term Notes with a fixed/floating rate due in 2031. This move is part of M&T’s strategic financial management, potentially enhancing its liquidity and market positioning.

The most recent analyst rating on (MTB) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
M&T Bank Highlights Strategic Priorities in Presentation
Positive
Jun 10, 2025

On June 10, 2025, M&T Bank Corporation released an investor presentation on its website, highlighting its strategic priorities and financial performance. The presentation emphasized M&T’s consistent profitability and growth compared to peers, with a focus on optimizing resources, enhancing risk management capabilities, and expanding in specific markets. The bank’s performance metrics, such as net interest margin and efficiency ratio, demonstrated a competitive advantage, contributing to its strong industry positioning.

The most recent analyst rating on (MTB) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on M&T Bank stock, see the MTB Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025