M&T Bank’s third quarter results were met with a negative market reaction despite exceeding Wall Street’s revenue and non-GAAP profit expectations. Management highlighted rising net interest margin, robust fee income, and improved asset quality, but also noted higher expenses and the continued contraction in commercial real estate lending. CFO Daryl Bible described the quarter as showing “continued momentum,” but acknowledged that competitive loan pricing and select one-time credit losses affected overall profitability. While non-accrual loans and criticized balances declined, the company saw increased net charge-offs due to two large commercial credits, and expense growth reflected both severance costs and elevated project-related spending.

Is now the time to buy MTB? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From M&T Bank’s Q3 Earnings Call

• Ken Usdin (Autonomous) asked about the timing of a rebound in the commercial real estate book. CFO Daryl Bible responded that CRE production has increased, especially in multifamily and industrial, but acknowledged continued office risk and said stabilization is likely by early next year.
• Gerard Cassidy (RBC) asked about regulatory changes and their impact on profitability. Bible explained that streamlined regulatory processes now allow for faster resolution of issues, which should reduce compliance burdens but may not directly lower expenses.
• Erika Najarian (UBS) inquired about M&T’s exposure to non-depository financial institutions (NDFI) and associated risk. Bible detailed a conservative approach, focusing on low-risk segments like fund banking and public BDCs, and highlighted operational controls in mortgage warehouse lending.
• John Pancari (Evercore) questioned the company’s capital targets and share buyback sensitivity. Bible said share repurchases are managed based on market conditions and tangible book value, with capital ratio adjustments to be revisited after board review.
• Manan Gosalia (Morgan Stanley) asked about expense outlook and technology investment. Bible outlined ongoing investments in digital platforms and data centers, aiming to control costs while supporting future growth.

Catalysts in Upcoming Quarters

In coming quarters, our analysts will monitor (1) whether commercial real estate balances stabilize as predicted and new loan production sustains momentum, (2) the effectiveness of expense containment as investments in technology and professional services continue, and (3) the impact of regulatory changes and competitive pressures on both margin and capital planning. Progress on digital transformation and asset quality trends will also be important signposts.

M&T Bank currently trades at $182.12, down from $185.15 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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