MTB

It has been about a month since the last earnings report for M&T Bank Corporation (MTB). Shares have lost about 0.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is M&T Bank due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for M&T Bank Corporation before we dive into how investors and analysts have reacted as of late. M&T Bank reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter. Results were aided by higher net interest income and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds. Net income available to common shareholders was $781 million, up 15% from the prior-year quarter. Revenues & Expenses Rise Y/Y The company’s quarterly revenues were $2.53 billion, surpassing the Zacks Consensus Estimate of $2.48 billion. The reported figure increased 5.7% year over year. NII (tax-equivalent) rose 4.8% year over year to $1.80 billion. The increase reflected growth in average loans and investment securities, along with favorable repricing of earning assets and interest-bearing liabilities, including an improved contribution from interest-rate swap agreements. Total non-interest income was $740 million, up 8.3% year over year. The rise was driven by higher service charges on deposit accounts, trust income, brokerage services income, trading account, and other non-hedging derivative gains, and other revenues from operations. Total non-interest expenses were $1.35 billion, up 1% year over year. The increase was due to higher salaries and employee benefits costs, outside data processing and software costs, professional and other services costs, and advertising and marketing expenses. The efficiency ratio was 52.8%, down from 55.2% in the year-earlier quarter. A lower ratio indicates a rise in profitability. Loan & Deposit Balances Increase Total loans were $143.2 billion as of June 30, 2026, up 2.3% from the prior quarter. Total deposits increased 3.1% sequentially to $168.9 billion. Credit Quality Improves Net charge-offs decreased 25.9% to $80 million from the prior-year quarter. The company recorded a provision for credit losses of $120 million, down 4% from the year-ago quarter. Non-performing assets declined 23.2% year over year to $1.23 billion. The ratio of non-accrual loans to total loans was 0.84%, which declined year over year from 1.16%. Capital Position Mixed & Profitability Ratios Improve Y/Y M&T Bank’s estimated Common Equity Tier 1 ratio was 10.19%, down from 10.99% as of second-quarter 2025. The tangible equity per share was $117.41, up from $112.48 in the second quarter of 2025. The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.59% and 18.57%, respectively, compared with 1.44% and 15.54% in the prior-year quarter. 2026 Management expects taxable-equivalent NII to be in the lower half of the $7.2-$7.35 billion range. The company expects NIM to be in the high 3.60% range. The outlook remains dependent on loan growth, deposit trends and the shape of the yield curve. Non-interest income is expected to be between $2.8 billion and $2.85 billion, revised upward from the prior guidance of $2.68-$2.77 billion. The increase reflects broad-based fee income growth and higher mortgage sub-servicing income beginning in the third quarter. Management expects 2026 GAAP expenses, including intangible amortization, to be at the high end of its $5.5-$5.6 billion guidance range. This reflects continued investments in enterprise initiatives despite disciplined control of non-investment spending. Average loan balances are expected to be $141-$143 billion, revised upward from the prior projection of $140-$142 billion. The growth reflects commercial loan momentum, improving CRE balances and continued consumer growth. Average deposit balances are anticipated to remain at $165-$167 billion. The net charge-off rate is projected to be around 37 basis points, revised downward from the prior expectation of around 40 basis points. The CET1 ratio is expected to be between 10% and 10.5%, compared with the prior expectation of around 10%. The tax rate is anticipated to be around 24% for 2026. In the past month, investors have witnessed a flat trend in estimates review. At this time, M&T Bank has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. M&T Bank has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. M&T Bank stock has returned 120.4% over the past five years, and the current Excess Returns intrinsic value estimate points to the shares trading at a discount while earnings based multiples look roughly in line with the market. That combination leaves investors weighing a potential margin of safety against a more neutral read from traditional valuation checks. The 120.4% five year return suggests M&T Bank has already delivered strong value for long term holders, so any further upside depends on what is already reflected in the price. Expectations for steady cash generation from its regional banking franchise can support the intrinsic value case, while exposure to credit quality and funding costs remains a key risk for how much of that value ultimately reaches shareholders. The stock scores 4 out of 6 on Simply Wall St's broader valuation checks, which is a mixed picture rather than a clear bargain or clear overvaluation, and you can see the details of that score at 4 out of 6. The issue now is whether M&T Bank's current price already reflects those fundamentals or still leaves a reasonable discount to the intrinsic value estimate. M&T Bank delivered 34.5% returns over the last year. See how this stacks up to the rest of the Banks industry. The Excess Returns model for M&T Bank estimates what shareholders earn above the company’s own cost of equity. For M&T Bank, the inputs point to a franchise that is expected to generate returns on its equity base above the required rate. The model uses a Book Value of $176.03 per share and a Stable EPS of $21.93 per share, based on weighted future Return on Equity estimates from 10 analysts. That compares with a Cost of Equity of $13.84 per share, which leaves an Excess Return of $8.09 per share. The Average Return on Equity assumption of 11.47% on a Stable Book Value of $191.31 per share, sourced from 8 analyst book value estimates, is what underpins this spread. On these inputs, the Excess Returns valuation points to an intrinsic value of about $420 per share. That is above the current share price, so the model output indicates M&T Bank stock is 39.7% undervalued. On balance, the Excess Returns model suggests M&T Bank screens undervalued relative to what its expected returns on equity support. Our Excess Returns analysis suggests M&T Bank is undervalued by 39.7%. Track this in your watchlist or portfolio, or discover 51 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for M&T Bank. The P/E ratio is a useful starting point for a bank like M&T Bank because earnings are a central lens investors use to value lending and deposit franchises. M&T Bank currently trades on a P/E of about 12.7x, which sits between the broader banks industry average of 12.1x and a peer group average of 14.0x. The fair P/E ratio from Simply Wall St's model is 13.2x, which reflects what investors might expect to pay given M&T Bank's risk profile and earnings characteristics rather than just raw sector averages. The current 12.7x multiple sits slightly below that fair level, so the market price does not point to a clear discount or premium on earnings alone. For investors weighing the earlier intrinsic value estimate against more traditional checks, the P/E suggests the stock is trading close to what the model views as a reasonable range. Overall, M&T Bank appears roughly fairly valued on its P/E multiple when compared with both its fair ratio and banking sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the valuation puzzle for M&T Bank leaves off by explaining what would need to happen to growth, margins and earnings for the stock to be worth materially more or less than today’s price. These narratives are available on the company’s Community page. Each narrative ties a fair value to a specific story about M&T Bank's potential catalysts and risks so you can track which version of events appears to be taking shape over time. You can add your voice to the Simply Wall St community by sharing a Narrative on M&T Bank that sets out a number driven view on where its growth, margins and execution go from here. Lay out your thesis in one place and track how it holds up as new results and updates emerge. Do you think there's more to the story for M&T Bank? Head over to our Community to see what others are saying! M&T Bank screens undervalued on the Excess Returns intrinsic value estimate, while the P/E view sits closer to about right against both peers and the fair ratio. That split reflects a gap between what the bank might earn on its equity over time and what the market is currently willing to pay for those earnings. The crux for investors is whether M&T Bank can keep converting its regional banking franchise into steady returns without credit or funding pressures eroding that intrinsic value case. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MTB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

UMB Financial Corp. UMBF reported second-quarter 2026 adjusted operating earnings per share of $3.57, beating the Zacks Consensus Estimate of $3.08. The bottom line also increased from $2.96 in the year-ago quarter. The company delivered a strong quarterly performance, supported by solid growth in net interest income (NII), higher non-interest income and continued loan growth. Improved efficiency and strong credit quality further supported the results. Results include certain non-recurring items. After considering those, net income (GAAP basis) available to common shareholders for UMBF was $271.8 million in the second quarter, up 26.2% from the year-ago quarter. Quarterly revenues were $786.9 million, rising 14.2% year over year. The metric beat the Zacks Consensus Estimate by 8.4%. NII was $532.5 million, up 14% from the prior-year quarter. On a fully-taxable-equivalent basis, the net interest margin was 3.32%, up 22 basis points year over year. The increase was primarily driven by favorable deposit repricing following lower short-term interest rates and growth in average loans and securities. Non-interest income was $245.5 million, up 10.5% year over year. The increase was primarily driven by higher trust and securities processing income, other income, and brokerage income. These increases were partially offset by lower investment securities gains. Non-interest expenses were $399.6 million, up 1.6% year over year. Second-quarter 2026 expenses included $1.7 million in total acquisition-related and other non-recurring costs. Operating non-interest expenses (adjusted basis) were $398 million, up 4.7% year over year. The efficiency ratio declined to 48.4% from the prior-year quarter’s 53.4%. A decline in the efficiency ratio indicates an increase in profitability. Average loans for the second quarter were $40.6 billion, up 3.2% sequentially and 11.6% from the prior-year quarter. End-of-period loans stood at $41.1 billion as of June 30, 2026. Average deposits remained flat sequentially and increased 3.5% year over year to $57.6 billion. Average interest-bearing deposits increased 3.9%, while non-interest-bearing demand deposit balances rose 2.1% from the prior-year quarter. Net charge-offs totaled $15.9 million, or 0.16% of average loans, compared with $15.5 million, or 0.17%, in the year-ago quarter. Total non-accrual and restructured loans were $127.5 million compared with $97 million in the year-ago quarter. The provision for credit losses was $28 million in the second quarter of 2026, up from $21 million in the prior-year quarter. As of June 30, 2026, the Tier 1 risk-based capital ratio was 12.02% compared with 11.24% as of June 30, 2025. The Tier 1 leverage ratio was 9.11% compared with 8.34% in the year-ago quarter. The total risk-based capital ratio was 13.80%, up from 13.46% a year ago. In the second quarter of 2026, the company repurchased 38,158 common shares at a weighted average price of $132.10 for a total repurchase of $5 million. Return on average assets at the second-quarter end was 1.55% compared with the year-ago quarter’s 1.29%. Return on average common equity was 14.16% compared with 12.72% in the year-ago quarter. UMB Financial posted robust second-quarter 2026 results, driven by strong NII growth, higher non-interest income, continued loan growth, the impacts of acquired Heartland Financial balances and improved operating efficiency. However, higher non-interest expenses and provision for credit losses were concerns. Going forward, continued balance sheet growth, disciplined expense management and prudent risk management will be the key to sustaining UMBF’s performance momentum. UMB Financial Corporation price-consensus-eps-surprise-chart | UMB Financial Corporation Quote UMBF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. First Horizon Corporation FHN posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter. FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds. M&T Bank Corporation MTB reported second-quarter net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter. MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UMB Financial Corporation (UMBF) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report First Horizon Corporation (FHN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Huntington Bancshares Incorporated HBAN reported second-quarter 2026 adjusted earnings per share (EPS) of 39 cents, which matched the Zacks Consensus Estimate. In the prior-year quarter, the company reported EPS of 38 cents. Results reflected improvements in net interest income (NII) and non-interest income. Also, an increase in loan and deposit balances was a tailwind. However, an increase in non-interest expenses and higher provisions acted as a spoilsport. The quarter’s results excluded 6 cents per share of the after-tax impact of acquisition-related expenses. After considering this, net income attributable to common shareholders (GAAP basis) was $727 million, up 36% year over year. Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 46% year over year to $2.86 billion in the second quarter. The top line surpassed the Zacks Consensus Estimate of $2.85 billion. NII (FTE basis) was $2.07 billion, up 40% from the prior-year quarter’s tally. The increase reflected higher average earning assets and an expansion in net interest margin (NIM). NIM rose 10 basis points year over year to 3.21%. Non-interest income climbed 67% year over year to $785 million. The upside was driven by increases in capital markets and advisory fees, payments and cash management revenues, customer deposit and loan fees, wealth and asset management revenues and mortgage banking income. The prior-year quarter also included a $58-million loss from the sale of certain investment securities. Non-interest expenses surged 51% year over year to $1.81 billion. The rise was mainly due to increases in personnel costs, outside data processing and other services, net occupancy expenses, equipment costs and amortization of intangibles. Adjusted non-interest expenses increased 39% to $1.66 billion. The efficiency ratio was 61.5%, up from 59% in the year-ago quarter. An increase in the efficiency ratio indicates lower profitability. Average loans and leases at Huntington rose 9% sequentially to $189.3 billion. Growth was supported by the full-quarter impact of the Cadence acquisition and organic growth across corporate and specialty banking, asset finance and middle-market lending. Average total deposits increased 9% sequentially to $223.4 billion. The rise was driven by the full-quarter impact of the Cadence acquisition and growth in demand, savings and time deposits. Net charge-offs were $119 million, up from $66 million reported in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.38 billion from $2.52 billion in the year-ago quarter. Total non-performing assets were $1.61 billion as of June 30, 2026, up from $852 million in the prior-year quarter. Net charge-offs as a percentage of average total loans and leases were 0.25%, up from 0.20% in the year-ago quarter. In the second quarter, the company recorded a provision for credit losses of $132 million, up from $103 million in the year-ago quarter. The common equity tier 1 (CET1) risk-based capital ratio was 10% in the second quarter, down from 10.5% in the year-ago period. The regulatory Tier 1 risk-based capital ratio was 11.3%, down from 11.8% in the comparable period in 2025. The tangible common equity to tangible assets ratio was 7.1%, up from 6.6% in the year-ago quarter. During the second quarter, Huntington repurchased $159 million of common shares. The company repurchased $309 million, or approximately 19 million shares, in the first half of 2026. The company’s acquisitions and continued organic loan and deposit growth are likely to support revenues. In June 2026, Huntington successfully completed the systems conversion of Cadence Bank, marking the final major integration milestone. The company also realized $70 million of annualized run-rate expense savings in the second quarter from its October 2025 Veritex acquisition and expects the full earnings contribution from its recent acquisitions by the fourth quarter. The anticipated cost and revenue synergies are encouraging. However, elevated expenses and an increase in non-performing assets remain concerns. Huntington Bancshares Incorporated price-consensus-eps-surprise-chart | Huntington Bancshares Incorporated Quote Currently, Huntington carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. First Horizon Corporation FHN posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds. M&T Bank Corporation MTB reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 per share in the year-ago quarter. MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report First Horizon Corporation (FHN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BOK Financial Corporation's BOKF second-quarter 2026 adjusted earnings of $2.59 per share surpassed the Zacks Consensus Estimate of $2.56. The bottom line jumped 18.3% from the prior-year quarter. BOKF’s results benefited from higher net interest income (NII) and total fees and commissions. An increase in loans was another positive. However, the rise in operating expenses was a major undermining factor. Excluding the net gain related to the exchange of Visa B shares and the loss from repositioning the available-for-sale securities portfolio, net income attributable to shareholders (GAAP basis) was $176.5 million compared with $140 million in the prior-year quarter. Quarterly net revenues of $589.4 million (NII and total other operating revenues) rose 10.1% year over year. The top line surpassed the Zacks Consensus Estimate of $559 million. NII was $351.8 million, up 7.2% year over year. The net interest margin expanded 11 basis points to 2.91%. Total fees and commissions were $202 million, up 2.4% year over year. The rise was driven by higher transaction card revenues, fiduciary and asset management revenues, and deposit service charges and fees, partially offset by lower brokerage and trading revenues, mortgage banking revenues, and other revenues. Total other operating expenses were $361.7 million, up 2% year over year. This rise was mainly driven by personnel, business promotion, net occupancy and equipment, FDIC and other insurance, data processing and communications, printing, postage and supplies, mortgage banking costs, and other expenses. The efficiency ratio was 60.21% compared with the prior-year quarter’s 65.42%. A fall in the efficiency ratio indicates a rise in profitability. As of June 30, 2026, total loans were $27.1 billion, up 3.4% from the prior quarter. The increase was driven by growth in commercial loans and loans to individuals, while commercial real estate loans remained relatively stable. Total deposits were $39.9 billion, up 3% sequentially. The rise was due to higher demand, interest-bearing transaction and time deposits, partially offset by a decline in savings deposits. As of June 30, 2026, non-performing assets were $62.7 million or 0.23% of outstanding loans and repossessed assets compared with $81.1 million or 0.33% in the prior-year quarter. The company recorded nil provisions for credit losses, unchanged from the prior-year quarter. The company recorded net charge-offs of $500,000 compared with $561,000 in the year-ago quarter. The allowance for loan losses was 1.02% of outstanding loans as of June 30, 2026, which declined 12 bps from the year-ago quarter. As of June 30, 2026, the common equity Tier 1 capital ratio was 12.89% compared with 13.59% a year earlier. The Tier 1 capital ratio and total capital ratio were 12.90% and 14.67%, respectively, compared with 13.60% and 14.48% as of June 30, 2025. At the end of the second quarter, return on average equity was 11.73%, up from the year-earlier quarter’s 9.70%. Return on average assets was 1.30%, up from 1.07% a year ago. The company repurchased 2,519 shares for $327,000 during the second quarter of 2026 at an average price of $129.89 per share. BOKF’s higher NII, fee income and solid loan balances continue to support its overall performance. The company’s improving profitability ratios and deposit growth are positive. However, rising operating expenses pose a near-term concern. BOK Financial Corporation price-consensus-eps-surprise-chart | BOK Financial Corporation Quote Currently, BOK Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. First Horizon Corporation FHN posted second-quarter 2026 earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 52 cents. This compares favorably with 45 cents in the year-ago quarter. FHN’s results benefited from higher NII and non-interest income, along with a lower provision for credit losses. Higher loan and deposit balances also provided support. However, rising expenses and weaker capital ratios were headwinds. M&T Bank Corporation MTB reported second-quarter net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter. MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BOK Financial Corporation (BOKF) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report First Horizon Corporation (FHN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

M&T Bank (NYSE: MTB) knocked it out of the park with its second-quarter earnings on July 15. Revenue was reported as $2.53 billion, up 5.7% year over year, and earnings per share (EPS) were a record $5.35, up 25% over the same period a year ago. The EPS figure beat analysts' predictions by $0.66. The company is a large regional bank that acts like a community lender, but with more than $216 billion in assets, it has the scale to handle massive commercial transactions. Because its footprint is heavily concentrated in the Northeast and Mid-Atlantic, stretching from New England through the Carolinas, its primary competition comes from other dominant regional players, neighboring southern giants, and East Coast retail powerhouses. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » M&T reported record second-quarter net income of $818 million on July 15, up 14.2% from the same period last year. Net interest income of $1.79 billion was up 4.6% year over year. The increases were driven by robust net interest income and a jump in non-interest fee income from trust and wealth management services. M&T Bank stock is up more than 23% so far this year. Here are three reasons it can hold that momentum: The bank is experiencing its strongest organic lending momentum in more than a decade. In the second quarter, M&T's loans climbed by $3 billion sequentially to $141.4 billion, marking its strongest core quarterly loan growth since 2012. This growth was widespread, with management reporting that 90% of its commercial and industrial business lines expanded quarter over quarter. M&T increased lending volume without sacrificing profitability; its net interest margin (NIM) remained robust at 3.70%, demonstrating that the bank is highly effective at pricing loans favorably in the current interest rate environment. The bank lifted its full-year lending target by $1 billion and said it is expecting loans of $141 billion to $143 billion at year's end. For regional banks, credit risk is always a primary concern for investors, but M&T's latest quarter showed significant improvements in asset health. The bank's provision for credit losses fell sequentially to $120 million from $140 million in the first quarter. Even more encouragingly, annualized net charge-offs dropped to just 23 basis points of average loans, down from 31 basis points in the prior quarter and from 32 basis points in the same quarter a year ago. Non-accrual loans also declined to 0.84%, down from 1.16% in the second quarter of 2025. This positive credit trajectory suggests that the bank's disciplined, conservative underwriting continues to shield it from broader macroeconomic pressures, making its high-yielding loan book highly resilient. The company has a dividend that, at the stock's current share price, yields 2.41%, more than double the S&P 500 average yield. The company raised the quarterly dividend to $1.50 in the third quarter of 2025, an increase of 11%. It has raised its dividend for nine consecutive years. It also repurchased $465 million of stock in the second quarter, after buying back $1.25 billion in the first quarter. In March, it announced a long-term buyback plan of up to $5 billion in M&T shares. The stock repurchases show the company's confidence and help maintain its share price. Bank stocks can be great long-term investments, but it is important to consider that they are cyclical and particularly susceptible to interest rate volatility. M&T Bank and other banks are having good runs right now, but if the economy were to falter, they would be among the first stocks to lose momentum. M&T Bank also has greater exposure to the commercial real estate (CRE) sector than some of its peers, though it trimmed its CRE balances by 7% year over year to $23.6 billion. However, it did grow CRE loans slightly compared to the first quarter. While management highlighted that this growth is driven by healthier multifamily and industrial properties, the regional banking sector at large remains under a microscope regarding commercial property loans. Any spike in defaults, particularly in the struggling office or retail segments of its Northeast/Mid-Atlantic footprint, would force M&T to aggressively ramp up its loan loss provisions. 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The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is M&T Bank a Buy After Its Second-Quarter Beat? was originally published by The Motley Fool

Truist Financial’s TFC second-quarter 2026 earnings of $1.23 per share handily beat the Zacks Consensus Estimate of $1.08. The bottom line was up 36.7% from 90 cents a year ago. Shares of TFC lost 1.2% in pre-market trading despite better-than-expected quarterly performance on net interest margin concerns.Results were primarily aided by a rise in net interest income (NII) and higher fee income. A higher average loan and deposit balance, as well as a decline in provisions, offered support. An increase in expenses and a decline in NIM were the undermining factors. Net income available to common shareholders was $1.52 billion, up 28.7% from the prior-year quarter. Total revenue of $5.27 billion rose 5.6% year over year. The top line beat the consensus estimate of $5.21 billion.  NII was $3.62 billion compared with $3.59 billion in the second quarter of 2025. This was driven by higher earning assets and loan growth, partly offset by lower loan spreads and fixed-rate debt repricing. The net interest margin (NIM) contracted 4 basis points (bps) to 2.98%.Non-interest income was $1.64 billion, up 17.4%. This was attributable to higher investment banking and trading income, wealth management income, mortgage banking income and lending-related fees. Non-interest expense totaled $3.06 billion, up 2.3%. This was primarily due to higher personnel costs related to salaries and incentives, partly offset by lower professional fees and outside processing expenses.Profitability metrics improved alongside earnings growth. Return on average common equity was 10.4% and return on average tangible common equity was 15.4% in the quarter compared with 8.1% and 12.3%, respectively, in the prior-year period. The efficiency ratio improved to 58% from 59.9%, signaling better operating leverage. Provision for credit losses decreased to $395 million from $488 million a year ago, reflecting an allowance release in the reported quarter. The allowance for loan and lease losses was 1.51% of loans and leases held for investment, down from 1.54% a year ago.Net charge-offs (NCOs) were $414 million, up from $396 million in the year-ago quarter. NCO ratio of 0.50% of average loans and leases increased 1 bp year over year.Total non-performing assets were $1.75 billion as of June 30, 2026, up from $1.32 billion a year earlier. Non-performing loans and leases were 0.51% of loans and leases held for investment, up 12 bps year over year. Balance sheet trends were solid, with average loans and leases of $331.75 billion, up from $313.84 billion in the year-ago quarter. This was driven by commercial and industrial, commercial real estate and other consumer loan growth.Average deposits were $404.87 billion compared with $400.48 billion a year earlier. Capital return was a notable highlight in the quarter. Truist returned $1.8 billion to shareholders through dividends and share repurchases, including $1.2 billion of buybacks. The company expects share repurchases to be approximately $5 billion in 2026. The common equity Tier 1 ratio was 10.9% at quarter end, up 10 bps sequentially but down from 11% a year ago. For the third quarter of 2026, management expects taxable-equivalent (TE) revenues to increase roughly 1% sequentially. Non-interest expenses are projected to rise almost 2% from $3.1 billion.For full-year 2026, Truist expects revenues (TE) to rise 3.5-4% and non-interest expenses to increase roughly 1.75%. The company also estimates NCO ratio of approximately 55 bps and an effective tax rate of about 14.5%. Management expects NII to increase 1-1.5% in 2026 from the prior year. The updated outlook reflects the continued optimization of less strategic lending portfolios, lower loan spreads, a less favorable deposit mix and changes in the forward interest-rate curve. Decent loan demand, higher fee income and TFC’s business restructuring/expansion initiatives are expected to continue supporting its top line. A solid balance sheet position is another positive. However, elevated expenses, given a tough operating environment, and pressure on NIM are major headwinds. Truist Financial Corporation price-consensus-eps-surprise-chart | Truist Financial Corporation Quote Truist Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. M&T Bank’s MTB second-quarter net operating earnings per share of $5.35 beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 in the year-ago quarter.Results were aided by higher NII and a rise in non-interest income, along with loan growth. However, higher expenses acted as headwinds.The PNC Financial Services Group, Inc. PNC reported adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. Results reflected higher NII, strong fee income growth, an improvement in NIM, solid loan growth and lower provisions. However, higher expenses and a decline in the deposit balance were headwinds. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Truist Financial Corporation (TFC) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fifth Third Bancorp FITB reported second-quarter 2026 adjusted earnings per share (EPS) of $1.02, which surpassed the Zacks Consensus Estimate of 98 cents. In the prior-year quarter, the company posted EPS of 88 cents. Results benefited from solid growth in net interest income (NII) and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial rise in non-interest expenses acted as a headwind. Given the concern, FITB shares declined nearly 3.1% in the early trading session. A full day’s trading session will depict a clearer picture. Results excluded a negative 19-cent impact of certain items, including merger-related charges, securities repositioning losses, technology-related asset impairments, severance expenses and interchange litigation matters. After considering these, the company reported net income available to common shareholders (GAAP basis) of $763 million, up 29% year over year. Total quarterly revenues (FTE) in the reported quarter were $3.28 billion, which increased 46% year over year. The top line surpassed the Zacks Consensus Estimate of $3.25 billion. Fifth Third’s NII (on an FTE basis) for the second quarter was $2.22 billion, up 48% year over year. This improvement primarily reflected the full-quarter contribution from Comerica. Organic loan production, continued fixed-rate asset repricing and disciplined liability management also aided growth. The net interest margin (NIM) (on an FTE basis) increased to 3.36% from 3.12% in the year-ago quarter. Non-interest income rose 41% year over year to $1.06 billion. The increase was primarily driven by higher wealth and asset management revenues, commercial payments revenues, consumer banking revenues, capital markets fees and commercial banking revenues, partly offset by a decline in mortgage banking net revenues. Non-interest expenses surged 67% year over year to $2.11 billion. The increase was primarily due to a rise across all cost components and the inclusion of Comerica acquisition-related costs, including merger and integration expenses. The efficiency ratio was 64.3%, higher than the year-ago quarter’s 56.2%. An increase in the ratio indicates a deterioration in profitability. As of June 30, 2026, portfolio loans and leases rose 1% to $178.5 billion from the previous quarter. Total deposits increased marginally from the prior quarter to $234.1 billion. The company reported a provision for credit losses of $129 million, down 25% from the year-ago quarter. Total non-performing portfolio loans and leases were $1.04 billion, up from $853 million in the prior-year quarter. However, the non-performing loan ratio improved to 0.58% from 0.70% in the year-ago quarter. Net charge-offs in the second quarter declined to $135 million or 0.30% of average loans and leases (on an annualized basis) from $139 million or 0.45% in the prior-year quarter. The total allowance for credit losses rose 23% to $3.15 billion year over year. The allowance for credit losses represented 1.76% of portfolio loans and leases, down from 2.09% in the year-ago quarter. The CET1 capital ratio was 9.93% compared with 10.58% in the year-ago quarter. The Tier 1 risk-based capital ratio was 10.81% compared with 11.85% in the prior-year quarter. The leverage ratio declined to 9.20% from 9.42% in the year-ago quarter. For the third quarter of 2026, Fifth Third expects average loans and leases to rise 1% sequentially. NII is projected to increase 2% to 2.5% from the second-quarter baseline of $2.22 billion, while non-interest income is expected to rise 1% to 3% from the baseline of $1.04 billion. Adjusted non-interest expenses are expected to decline 1% to 2% sequentially from the second-quarter baseline of $1.86 billion. The net charge-off ratio is projected to be between 30 and 35 basis points, while the effective tax rate is expected to be 22.5%. For 2026, Fifth Third narrowed its average loans and leases outlook to $174-$176 billion from the prior expectation of the mid-$170 billion range. The company slightly raised its 2026 NII outlook to $8.74-$8.80 billion from the previous guidance of $8.7-$8.8 billion, driven by the assumption of a higher 4% federal funds rate at year-end 2026 compared with 3.75% previously. The company now expects non-interest income of $4.06-$4.16 billion, compared with its prior outlook of $4-$4.2 billion. Adjusted non-interest expense is now expected to be $7.22-$7.26 billion, compared with the prior outlook of $7.2-$7.3 billion, while the net charge-off ratio is still expected to be 30-40 basis points and the effective tax rate 22-23%. Strong growth in NII, driven by the full-quarter contribution from Comerica, organic loan production, fixed-rate asset repricing and disciplined liability management, supported top-line expansion. The company also witnessed solid growth in loans and deposits, reflecting improving business momentum. Broad-based fee income growth and lower provisions were other positives. The decline in the net charge-off ratio also reflected strong credit performance. However, elevated expenses related to integration activities and the lower year-over-year capital ratios remain near-term concerns. The Comerica acquisition (completed in February 2026) remains on track for integration, with systems conversion scheduled for Labor Day weekend. Fifth Third expects the conversion to unlock the full $850 million annualized expense synergy run rate in the fourth quarter of 2026. Fifth Third Bancorp price-consensus-eps-surprise-chart | Fifth Third Bancorp Quote Currently, Fifth Third carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. M&T Bank Corporation MTB reported second-quarter 2026 net operating earnings per share of $5.35, which beat the Zacks Consensus Estimate of $4.66. The bottom line compared favorably with earnings of $4.28 per share in the year-ago quarter. MTB’s results were aided by higher NII and a rise in non-interest income on a year-over-year basis, along with loan growth. However, higher expenses acted as headwinds. The PNC Financial Services Group, Inc. PNC has delivered adjusted earnings per share of $4.85 in the second quarter of 2026, beating the Zacks Consensus Estimate of $4.51 and up from $3.85 a year ago. Results reflected higher NII, strong fee income growth, an improvement in the NIM and solid loan growth. However, higher expenses and a decline in the deposit balance were headwinds for PNC. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 15, 2026 at 8:00 a.m. ET Senior Vice President of Investor Relations - Steven Wendelboe Senior Executive Vice President and Chief Financial Officer - Daryl Bible Need a quote from a Motley Fool analyst? Email [email protected] Operator: Welcome to the M&T Bank second quarter 2026 conference call. All lines have been placed on listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star, then one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. When posing your question, we ask that you please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Steven Wendelboe, Senior Vice President of Investor Relations. Please go ahead. Steve Wendelboe: Thank you, Chelsea, and good morning. I'd like to thank everyone for participating in M&T's second quarter 2026 earnings conference call. If you have not read the earnings release we issued this morning, you may access it along with the financial tables and schedules by going to our investor relations website at ir.mtb.com. Also, before we start, I'd like to mention that today's presentation may contain forward-looking information. Cautionary statements about this information are included in today's earnings release materials and in the investor presentation, as well as our SEC filings and other investor materials. The presentation also includes non-GAAP financial measures as identified in the earnings release and investor presentation. The appropriate reconciliations to GAAP are included in the appendix. Joining me on the call this morning is M&T's Senior Executive Vice President and CFO, Daryl Bible. Now I'd like to turn the call over to Daryl. Daryl Bible: Thank you, Steve, and good morning, everyone. Before we discuss our results, I'd like to begin with what continues to define M&T, our purpose: to make a difference in people's lives by knowing them, growing with them, and connecting them with everything they need to thrive. That purpose continues to guide how we invest in our business and in the communities we serve. During the quarter, we helped launch new initiatives to strengthen Boston's position as a premier partner hub for innovation in the partnership with the city and The Boston Foundation as part of the You Can't Beat Boston initiative. We also expanded our work with the Spanish government and the ICEX to help support and connect international life science companies with Boston's innovation ecosystem. Together, these efforts strengthen relationships among businesses, institutions, and communities while supporting long-term economic growth in one of the most dynamic markets we serve. We also celebrated the fifth anniversary of our tech hub at Seneca One in Buffalo. We started with an investment in technology talent that has become an important part of both Buffalo's innovation ecosystem and M&T's transformation. Today, the hub serves as a center for technologists, designers, business leaders working together to improve how we serve customers and operate the company. Put simply, we are using technology to scale what has always differentiated M&T, strong relationships, local knowledge, and disciplined execution. Turning to slide five. We are pleased to receive continued recognition for our company and our people, reflecting the strength of our talent and the trust we have earned in the communities we serve. Now let's turn to slide seven and our second quarter results. Diluted GAAP earnings per share were $5.32, up from $4.13 in the prior quarter. Net income was $818 million compared to $664 million in the linked quarter. M&T's second quarter results produced an ROA and ROCE of 1.51% and 12.3% respectively. Our results reflect the highest quarterly diluted earnings per share in M&T's history. Our earnings strength was broad-based. We reported the highest quarterly NII since 2023 and record fee income excluding the impact of notable items from prior periods. NII was supported by the strongest quarterly loan growth since 2012, excluding acquisitions and PPP during COVID. We also returned to CRE growth, with average balances increasing for the first time in 2021, excluding acquisitions. We remain disciplined in our profitability, maintaining our strong and stable net interest margin at 3.70% in the backdrop of strong loan growth. The asset quality continued to improve. Net charge-offs were 23 basis points, and commercial criticized loans declined by $0.7 billion, making it the ninth consecutive quarterly decline. While the recent stress test results do not affect our required capital levels, we are pleased with the outcome, which reflected an implied stress capital buffer of less than 2.5% at 2.2%. Slide eight includes supplemental reporting of M&T's results on a net operating or tangible basis. Net operating income was $823 million, up from $671 million in the linked quarter. Diluted operating earnings per share were $5.35 compared to $4.18 in the prior quarter. Net operating income yielded an ROTA and ROTCE of 1.59% and 18.57%. Next, we'll look a little deeper into the underlying trends that drove our second quarter results. Please turn to slide nine. Taxable equivalent net interest income was $1.8 billion, an increase of $41 million or 2% from the linked quarter. Net interest margin was 3.7%, unchanged from the prior quarter, as the earning asset yield increase was offset by higher funding levels in support of loan growth. In conjunction with the recent implementation of our new general ledger, we refined our methodology for calculating annualized taxable equivalent rates for earning assets and interest-bearing liabilities. Previously reported amounts have been adjusted to conform to the current presentation. This adjustment provides a more consistent way of annualizing balance sheet yields. Turning to slide 11 to talk about average loans. Average loans increased $3 billion to $141.4 billion. Growth was broad-based across each of our portfolios, led by our commercial lending. Commercial loans increased $2.3 billion to $66 billion, aided by growth in middle market, business banking, and several of our specialty businesses. Middle market balances benefited from higher utilization rates. Average CRE loans increased $57 million to $23.6 billion, reflecting strong origination volume. While not shown on the page, end-of-period CRE balances increased $1.1 billion since March to $24.5 billion, driven primarily by growth in multifamily and industrial. Average residential mortgage loans increased 1% to $25.1 billion. Consumer loans increased 2% to $26.7 billion with growth in the recreational finance and HELOC portfolios. Loan yields increased 4 basis points to 5.89%, mostly reflecting higher CRE yields, including a benefit from higher non-accrual related interest. This quarter, our earnings release was enhanced to include additional loan balance detail, including industry breakouts for C&I, property type for CRE, and additional detail on the consumer portfolios. These details can be found on page 16 of the earnings release. Turning to slide 12, our liquidity remains strong. At the end of the second quarter, investment securities and cash held at the Fed totaled $53.9 billion, representing 25% of total assets. Average investment securities increased $0.9 billion to $38.7 billion. The yield on investment securities increased 7 basis points to 4.29%. In the second quarter, we purchased $1.1 billion in debt securities with a yield of 5.02%. At quarter end, the investment portfolio had a duration of 3.6 years, and the unrealized pretax loss on available for sale was $125 million. While not subject to the LCR requirements, M&T estimates that its LCR at quarter end was 106%, exceeding the regulatory minimum standards that would be applicable if M&T was a Category 3 bank. Turning to slide 13. Average total deposits declined $0.7 billion to $163.5 billion. Non-interest-bearing deposits decreased $0.6 billion to $43.9 billion, with lower institutional services and commercial partially offset by growth in consumer and business banking deposits. Interest-bearing deposits were largely unchanged at $119.6 billion. However, we remixed the portfolio by shedding the highest cost money market deposits and replacing them with lower cost time deposits. Interest-bearing deposits cost decreased 2 basis points to 1.95%, with deposit costs improving across most of our businesses. We remain disciplined in our deposit pricing with a 56% cumulative interest-bearing deposit beta since the start of the cutting cycle in 2024. We saw encouraging deposit trends later in the quarter with end-of-period deposits increasing to $168.9 billion, driven by commercial, business banking, and trust demand deposits. Though end-of-period trust demand deposits can vary each quarter, we usually see more deposit growth in the second half of the year and expect the trend to continue. This focus on deposits should normalize borrowings in the coming year quarters. Continuing on slide 14. Non-interest income was $740 million compared to $689 million in the linked quarter. Mortgage banking revenues were unchanged at $127 million. Residential mortgage revenues increased $7 million to $96 million from higher servicing fee income. Commercial mortgage decreased $7 million to $31 million, primarily from lower origination volume than the first quarter. Service charges increased $5 million to $144 million, reflecting higher consumer service charges, mostly from higher transaction volume. Trust income increased $14 million to $197 million from a $4 million in seasonal tax prep fees and growth in institutional services and wealth fee income. Derivatives and trading increased $8 million to $22 million from revenues from the interest rate swap transactions with commercial customers. Other revenues from operations increased $26 million to $213 million, reflecting a $47 million Bayview distribution compared to $33 million in the prior quarter and the higher credit card and merchant discount. While the timing of Bayview distributions can vary over the course of the year, the investment remains a meaningful and recurring contributor to our annual earnings profile. New this quarter on pages 17 and 18 of our earnings release include additional details on the underlying drivers of our residential and commercial mortgage and other fee income. Turning to slide 15. Non-interest expense for the quarter was $1.35 billion, a decrease of $89 million from the prior quarter. Salaries and benefits decreased $88 million to $826 million from lower seasonal compensation and staffing levels, partially offset by one additional working day and a full quarter impact on the annual merit increases. Outside data processing and software costs increased $10 million, reflecting continued investments in technology infrastructure and cybersecurity. The efficiency ratio improved to 52.8% compared to 58.3% in the linked quarter. Next, let's turn to slide 16 and 17 for credit. Asset quality remained strong in the quarter. The lower net charge-offs and continued improvement in non-accrual and criticized loans. Criticized commercial loans were $5.9 billion, down from $6.6 billion at the end of March. The improvement from the linked quarter was driven by a $590 million decline in CRE, primarily from upgrades in multi-family and office and a $110 million decline in C&I criticize. Non-accrual loans decreased 3% to $1.2 billion, and the non-accrual ratio decreased 5 basis points to 84 basis points. Net charge-offs for the quarter totaled $80 million or 23 basis points, decreasing from 31 basis points in the linked quarter. Net charge-offs were granular with no single net charge-off greater than $10 million. In the second quarter, we reported a provision for credit losses of $120 million compared to net charge-offs of $80 million. The allowance for loans losses as a percent of total loans declined 1 basis point to 1.52%. Turning to slide 18 for capital. M&T's estimated CET1 ratio was 10.19%, a decline of 14 basis points from the first quarter. The lower CET1 ratio reflected $465 million in share repurchases and higher risk-weighted assets associated with $3.3 billion of loan growth. These factors were partially offset by continued strong capital generation. If included in regulatory capital, AFS and pension-related AOCI would decrease CET1 ratio by 2 basis points. Tangible book value per share grew 1% from the first quarter. Now turning to slide 19 for outlook. First, let's begin with the economic backdrop. The U.S. economy has held up well thus far through the energy shock, though we remain cautious. The increase in gasoline prices has been challenging for households. We see them having the shock by reducing spending in other areas and aided by a boost in tax refunds this year. Although the geopolitical conflict has not been fully resolved, we are cautiously optimistic with an outlook of continued growth. U.S. and GDP has slowed, reflecting slowing consumer spending. We do not see evidence of an energy shock seeping into core inflation, and we expect overall inflation to deaccelerate going forward. Encouragingly, job growth accelerated again in the second quarter as it did in the first. We remain well-positioned for a dynamic economic environment. Now turning to outlook. We expect NII in the lower half of $7.2 billion-$7.35 billion range and the full-year NIM in the high 3.60%. We expect continued loan and deposit growth in the second half of the year with full average loans of $141 billion-$143 billion. This reflects the strength we've seen in the commercial loans, reflecting CRE balances and continued growth in consumer. Our deposit outlook remains in the $165 billion-$167 billion range with a cumulative interest-bearing deposit beta in the low to mid 50% range. NII has continued to depend on the shape of the yield curve and loan and deposit balances. We remain neutral on the short end of the curve. At the same time, our naturally asset-sensitive balance sheet provides flexibility, and we can adjust our sensitivity as warranted through maturities of cash flow swaps, shifts in cash and securities mix, and the addition of pay fixed swaps. We expect fee income to be $2.8 billion-$2.85 billion, reflecting broad-based strength in fee income year to date. The second quarter Bayview distribution and the higher sub-servicing fee income beginning in the third quarter. Expenses are expected to be at the high end of the $5.5 billion-$5.6 billion range as we continue with our enterprise investments while maintaining overall expense discipline. Given the strong credit performance in the first half of the year and our favorable collateral positions, we now expect full-year net charge-offs of 37 basis points. We expect to operate the CET1 ratio in the lower part of the 10%-10.5% range unless market conditions start to deteriorate. To conclude on slide 20, our results underscore an optimistic investment thesis. M&T has always been a purpose-driven organization with a successful business model that benefits all stakeholders, including shareholders. We have a long track record of credit outperforming through all economic cycles while growing within the markets we serve. We remain focused on shareholder returns and consistent dividend growth. Finally, we are a disciplined acquirer and prudent steward of shareholder capital. The strength and diversification of M&T's balance sheet, capital, asset quality, and revenue will continue to allow M&T to outperform consistently across cycles. As we close, I want to thank all of my M&T colleagues whose dedication and hard work make a difference every day for our customers, communities, and one another. Because of all of your commitment, M&T continues to create lasting value for everyone we serve. Now let's open the call up for questions for which Chelsea will briefly review instructions. Operator: Thank you. At this time, if you would like to ask a question, please press star one on your keypad. To leave the queue at any time, press star two. Once again, we ask that you please pick up your handset when posing your question to allow for optimal sound quality. We also ask that you please limit yourself to one question and one follow-up. Our first question will come from Manan Gosalia with Morgan Stanley. Please go ahead. Manan Gosalia: Hi, good morning. Daryl Bible: Good morning, Manan. Manan Gosalia: Good morning. Daryl, in the NII guide, I guess you're still pointing to the low end of the range. You upped the loan growth guide. I think you're guiding to some NIM compression here in the second half relative to the 3.70% or so in the first half. Can you talk about what's baked into that outlook in terms of, I guess, deposit pricing and loan pricing? Daryl Bible: Yeah. Happy to. As far as how we expect the balance sheet to go out, we have a lot of momentum in the loan area. If you look at the loan growth that we had this past quarter, it was very robust. We had growth in over $800 million in our middle market regional businesses. About half of that was due to higher utilization. The other half was permanent loans. We had growth in a lot of our specialty businesses. Mortgage Warehouse was up $350 million, institutional CRE $335 million, C&I corporate institutional $309 million. Fund banking was also up, business banking, LEAF, lender finance, and healthcare. It was very strong, very robust. We had a really strong finish in the quarter in CRE. If you look at it, on an average basis, we eked out a little bit of growth average over average. When you look at the June numbers and what we put on the books, we're set to have really strong average balance growth in CRE in the third quarter, just because of everything that happened in June. Our two consumer portfolios, mortgage and the consumer indirect and direct businesses also grew nicely. We expect all those portfolios to continue to grow in the third and the fourth quarter. We maybe not have quite as much growth in the third and fourth as we had in the second, we're pretty positive that these portfolios will continue to grow and have positive momentum. On the deposit side, we started the quarter off a little soft on deposit growth, we've rebounded, and you can't really see it in averages. If you look at the growth that we had at the middle to the end of second quarter, our deposit growth was really robust and strong. Really, when you compare June averages to second quarter averages, we're up $3.4 billion. We have a lot of deposit momentum going forward. I know that we had a little bit elevated in short-term borrowings. That short-term borrowings number is going to come back down now. It's already down a couple billion dollars, and it continues to come down as we're starting to grow deposits. Pricing-wise, our deposit betas are still in the mid-50s. It may eke down to the low-50s, but it's the right thing to do to grow our loans with core funding, which is what we're doing. Manan Gosalia: Very clear. Thank you. Maybe as a follow-up on capital. One of the things that René spoke about recently is how M&T has historically not done as many risk transfer deals as some of your peers. Now that we have the new capital proposals, is there any way you can help us think through what that opportunity is, how to think about the capital that you can free up, and over what timeframe? Daryl Bible: The Basel III proposal for SSFA type transactions specifically limit the downside risk that was there before. It can't get to dollar for dollar capital in the worst-case situation. Only it gets to the worst case of what the asset would have been if you put it on individually, not in a secured type transaction. That kind of cuts the risk off of how much capital you would have to redeploy if things deteriorated. We have some products that we have out there. We're launching new products in CRE that will take advantage of that. Growth will build slowly over time. Our CRE team is excited about that, and we'll have a little bit of growth this year, but that will grow more into the next couple of years as we move forward. In just the normal C&I space, our focus is really making sure we know what asset qualities are in the deals, how we monitor these asset qualities, and make sure that we're very diversified in these. We will on occasion do some of these transactions. Growth will be more than we have. We have hardly anything on our books today, we're coming from a very low level. Operator: Thank you. Our next question will come from Erika Najarian with UBS. Please go ahead. Erika Najarian: Hi. Good morning. Daryl, I heard you loud and clear in terms of anticipating seasonally stronger deposit growth in the second half of the year. Your wholesale balance sheet will come down on the liability side. In the case, though, that loan growth continues, obviously, at this pace, you've hit an inflection point in CRE. Maybe talk to us about sort of how much you're going to potentially just market core funding versus go to the wholesale market. I'm looking at an 18-month CD at 360 on your website, which is lower, obviously, than your borrowing yield. As we think about loan growth continuing to outpace deposit growth, even with those seasonal factors, how should we think about the mix of your liability growth from here? And maybe sort of double-click on your comments on deposit costs. Daryl Bible: That's a good question, Erika. Back early in the second quarter when we saw the loan growth starting to come through pretty strong and the pipelines building, we met with all of our businesses in the company and really had them focus. I've only been at M&T for a little over three years, but I basically have. We have both oars in the water. Loans are growing nicely, and we had to get our deposit growth up to grow nicely as well. We started with consumer and business banking. They have responded. They have promotions going on that are attractive and still at a reasonable cost that we think, so in that they're growing. Commercial and wealth are our focus, corporate trust, and we continue to get more escrow deposits in mortgage. All those businesses are really focused at trying to grow deposits as much as possible. If by chance it's not enough to support the loan growth that we have, we have other alternatives. We've consciously been active in putting out funding securitizations out there in auto, in RV, and small ticket leasing to make sure the investors know our collateral and all that. We could turn and dial that up if we had to. We could issue more debt or Federal Home Loan Bank advances. We have a lot of options, but the most important thing is to really focus and serve our clients and communities and really try to do it with core deposits to meet the core loan demand. Erika Najarian: Yeah. Got it. Just to follow up, if the Fed keeps rates where they are, do you expect deposit costs to drift higher given what you just said? Given what you said during prepared remarks about asset sensitivity, what does a 25-basis-point rate hike do to that high 3.6% NIM as we think about the go forward and the exit rate? Daryl Bible: Yeah. For the Fed, and if rates stay, they don't change, the way I look at it is, you look at deposit growth, interest-bearing deposits are growing faster than non-interest-bearing. Non-interest-bearing rates are a little bit higher. We actually planned for rates being down this year, we aren't meeting our expectations on DDA growth right now. For every marginal asset you put on the books is going to be at a lower margin than what we anticipated to be. That does put down a little bit of pressure on net interest margin. We operate with one of the highest net interest margins in the industry. I think we're okay trading a few basis points away from that and getting more growth in NII. I think that's a fair trade. I don't think our NII or net interest margin is going to collapse by any reason, but I think it's a good trade-off from what we see. As far as the assets and rates going up 25 basis points, we're really neutral, and our forecast already has the steepness in the curve that we have today factored in for the rest of the year. I don't think you get much change either way with what we have. If by chance the curve gets steeper, that would be a good guy. If it gets flatter, it'd be a bad guy. We have pretty much of that factored in our forecast today. Operator: Thank you. Our next question will come from John Pancari with Evercore. Please go ahead. John Pancari: Morning. Daryl, back to the loan growth topic. The loan growth trends are definitely encouraging. It's good to see the pipelines building and higher utilization. On the commercial real estate front, also good to see the inflection. What gives you confidence that inflection is going to be sustained here? How should we think about the pace of growth there? I mean, are you still selective in terms of your posture, and that could impact your growth? How should we think about that? Trajectory, maybe could you break it out on how we should think about the C&I side of it as well? Thanks. Daryl Bible: Okay. Let me start with CRE. Having met with our leaders in CRE and the team, they had a very robust pipeline and had a really strong finish, as I said, in the second quarter. That will definitely carry us strong into the third quarter. They still are very optimistic. When I asked them where they're seeing growth. We're originating in just about every segment that you can originate in except office, for the most part. Our strongest, obviously, are in multi-family and industrial, but we're doing retail, we're doing hotel, we're doing home building, construction. They're all adding to it. We put out a lot of construction loans over the last year or two. Those are starting to fund now, too, so that's another positive. We're pretty optimistic on the CRE growth headed here now and feel good that it's going to be a good contributor to earning asset growth for the company. On the C&I front, they had the best quarter you could probably ever have on this past quarter. 90% of all the businesses grew quarter-over-quarter. That just doesn't happen very often in my career. Hats off to Peter D'Arcy and his team there. They did an amazing job from that. I think third quarter, they're going to have to rebuild pipelines. I think we'll grow, but probably more modestly third quarter. Hopefully, we finish the year out strong in the fourth quarter and have momentum going into 2027. Peter's got a lot of motivated people. We got a lot of products and services out there to serve our customers, and we're doing that, and we're making a difference. John Pancari: Got it. Okay, great. Thank you. On the capital front, CET1 at 10.2%. Came down a bit, but you had bought back about $465 million in the quarter. How should we think about the pace of buybacks as you are now looking at a faster pace of loan growth in front of you, as well as other capital considerations? How should we think about the pace of buybacks- Daryl Bible: Yeah. John Pancari: as we look out for the rest of the year? Daryl Bible: Yeah. We're going to target the 10.2%± range for capital. Buyback's going to be the tail on the dog. Depending on how much RWA growth we get through lending, we know we'll buy back what we need to basically stay at that level that we're currently at today, is kind of how I would forecast it. It's just where we want to operate now, and we'll see as we get into next year and Basel III gets approved, what changes we might consider. Right now, we feel comfortable operating in the low 10% range, and it's going to how much we buy back as a factor of loan growth. Operator: Thank you. Our next question will come from Gerard Cassidy with RBC Capital Markets. Please go ahead. Gerard Cassidy: Hey, Daryl. Daryl Bible: Hey, how we doing? Gerard Cassidy: Good. Thank you for the additional information on pages 17 and 18 that you cited. Daryl Bible: We got more information coming. This new general ledger we have, we're going to have more information next quarter or in the next couple quarters. This is just the start of what we are able to do these days. Gerard Cassidy: That's great. You're paving the way for others to follow. Question for you. On the sub-servicing number that you disclosed in June 30th, I think it was $184 million, possibly, or $184 billion. I guess it's billion. It's up nicely from the prior quarter. What's the driver? Is that Bayview? How should we look at that number going forward for the sub-servicing of residential mortgages? Daryl Bible: We just closed on another 214,000 sub-servicing loans. Some of the sub-servicing comes from Bayview, some of it comes from other customers. It's diverse from that perspective. What we just put on the books will be new revenue for the third and fourth quarter. Probably second half of the year is about $35 million more in revenues is what you see. Costs are pretty much already there because we've been building and hiring folks for that, so that's already in the run rate. It's really just the add of the revenue coming in. It's a really great business that we have. We specialize in the hard to service, more of the FHA-type lending, and we do a really good job with that. People come to us to service their loans because of that. Gerard Cassidy: Very good. Circling back to your answer about in your career, about the C&I loan growth you saw this quarter and all the different categories. Is there any way that you guys can get your arms around the impact that the AI industry, I don't mean just the building of the data centers, but is there any way you can get your arms around the second derivatives of the AI industry impacting loan demand going forward? Whether it's not just the plumbers and the HVAC and the cement companies, but just all the software companies. Have you guys been able to dive into the portfolio to see what kind of exposure you may have? Daryl Bible: I'm sure, given our diverse portfolio that we have, there is some impact for that. For the most part, it's really our core customers that we've had for a long time. A lot of them are just rebuilding, putting on new equipment. If you look at our leasing businesses, both small-ticket leasing and our equipment leasing grew really nicely this past quarter. There's really just good core demand out there. The other thing I think, Gerard, is I think private credit isn't as aggressive as it was, and I think we're winning back market share back in the regions, which is really what's helping us. Operator: Thank you. Our next question will come from Ken Usdin with Autonomous Research. Please go ahead. Ken Usdin: Thanks. Good morning, Daryl. Just one question on fees, one question on expenses. On the fee side, can you just remind us, the BLG won't repeat in the second half, then you mentioned the servicing. I think you had previously quantified that, but could you just give us an update on how much that servicing add will be, and then just how you expect some of the other fee lines to traject from here? Thanks. Daryl Bible: Yeah. I just gave it on the last call with Gerard. Second half of the year, the new servicing is $35 million additional revenue in that line item. As far as BLG goes, we aren't on his board or anything. We just get distributions when he distributes money out of his company. We don't really know how much or when we're going to get distributions, so it's hard to say when it's going to happen and how much we're going to get there. We're happy to have it. If you look at Bayview, and I looked at some numbers, since 2020, we have almost $300 million of revenue that we basically received from Bayview. You can really tell that his businesses are growing nicely. He has a lot of momentum, and he's doing a great job. His business is helping and we're benefiting from that. Ken Usdin: Thanks. Sorry for that. I guess I was really then focused on if you could expect continued momentum in some of the other lines that you've seen really good growth in, like service charges, trusts notably have been really nice drivers. Daryl Bible: Yeah. I think some of the upside that I saw was wealth. One of our initiatives this year was to really focus on and really cross-sell our M&T commercial and business banking customers into our wealth area. The referrals have picked up dramatically, more than double than what they were the past year, and we're getting more wins out there, and we're having really nice growth in asset management, positive flows there in that area. That's been really positive for us. Corporate trust, their global capital markets domestically and in Europe had really strong second quarters, really positive. They have a lot of momentum going on, which is really well. Treasury management's doing well, serving our customers. The other thing in capital markets, our capital markets area, we had a big quarter in our derivative area that we sell to our commercial customers. That was nice growth. We really have strong, robust growth, and we're doing great there and feel very positive on the momentum we have on fees. Operator: Thank you. Our next question will come from Ebrahim Poonawala with Bank of America. Please go ahead. Ebrahim Poonawala: Hey, good morning. Daryl Bible: Morning. Ebrahim Poonawala: Hey, Daryl. Just wanted to follow up. You talked about expectations that the deposit betas could maybe drift lower. Talk to us a little bit around when we think about the strength on the C&I side on lending, the level of sort of deposit generation lending is doing today. Is that a thing or not? My view of this was, when a bank makes a C&I loan, it does create deposits, and that's a better negotiated rate on those deposits. Is that holding in the current environment or not? Daryl Bible: Yeah. Even when I would say private credit was more aggressive the last couple of years, we still had the deposit treasury management revenue. That really hasn't changed. If you look at our regional middle market businesses, and the growth that we're seeing there, we bring the whole relationship there. We have the loans, deposits, and the fees all coming together. That's probably some of the most profitable businesses that we have in the company from that perspective. That's there and live and well. Now it's harder to get DDA and people are more educated, so you put money in sweeps, but that just means we get fee income and less DDA. You're seeing that this year and with rates a little bit higher. Net overall, it's still really good business to get deposits. When we go through the credit process, if we don't get the deposit relationship right away for a new client, we give our customer time to get it to us. Over time, if we can't get that, we'll probably exit the relationship. It's hard to make it on an asset alone only from a total return. Ebrahim Poonawala: Got it. That's helpful. Just on the fee side, you talked about the momentum on the fee revenue. Specifically when we think about MSR assets, just talk to us in terms of how you all are thinking about it in terms of adding more and what the pricing backdrop looks there. Daryl Bible: Ebrahim, so our MSRs that we have on our books are really what we originate and put on the books, and that's really our customers there. When we talk about growing sub-servicing, we don't really have an asset on the books. There's nothing to hedge. It's just a fee for service that we offer. We have a lot of sub-servicing relationships that we have where they just pay us a fee to service those loans. It's not part of the asset that we would have on the books or anything like that. Operator: Thank you. Our next question will come from Matt O'Connor with Deutsche Bank. Please go ahead. Matt O'Connor: Good morning. Obviously positive to see the CRE loans inflecting here. I remember a while back you guys talked about kind of broadening out that business so that it's not just a balance sheet business. Some you'll hold, some you'll facilitate out to other funders. Just remind us kind of what that opportunity might be more broadly speaking in CRE, with the businesses overall inflecting strongly like it has. Daryl Bible: Yeah. When you see our CRE business, it's really transformed significantly over the last four or five years. We used to be a CRE portfolio balance sheet only type of lender in that space. But when you look at our businesses now, we have a strong so-called RCC where we can originate and sell. Last year in 2025, we had the same number of originations in RCC as we did on the balance sheet. It was a really strong year. Rates were a little bit lower last year, and we benefited from that. But to get permanent financing, we were able to go to the agencies or insurance companies or others to serve our customers' needs from that. But we've been growing those. I just talked about on an earlier question, we have a new business called CRE Warehouse. CRE Warehouse is something that we're going to start up and start making now. That's a growing business. We have our affordability businesses that are in there that are growing nicely, and then we have our institutional CRE business. When you look at it, Tim Gallagher, who runs that business, has these five businesses, and he has a whole portfolio there. Some is on balance sheet, some is off balance sheet, some of it's fees. It's really just transformed how we do business with our customers. But the number of customers we're serving is much more than what we had many years ago and all that, and it continues to grow and prosper. Matt O'Connor: Okay, that's helpful. Just separately, good trends in credit. Would you say we fully have normalized here? Or still some kind of both opportunity for criticized to come down and potentially some lumpy items as you kind of work through some remaining credits? Daryl Bible: Yeah. There's two things I look at. We give you a non-accrual number, and that non-accrual number went down 5 basis points to 84 basis points. That's probably bumping along the bottom. It's like a two-decade low number. That's probably going to bounce around there and not go much lower or higher than what we see today. As far as the criticized portfolio goes, we still have room for it to come down, maybe not as fast as it's come down the last couple of quarters, but we still are projecting it to come down. When you look at our office CRE portfolio, we still have about 24% that are in criticize there. But we had some office loans come off of criticize this past quarter, and we think that's going to continue to happen over the next year or two. There's still room for it to come down. The C&I criticize has been coming down a lot slower. That will be more modest, we believe. Net overall, we still think we have trajectory and room for the commercial criticize to come down some. Operator: Thank you. Our next question will come from David Chiaverini with Jefferies. Please go ahead. David Chiaverini: Hi. Thanks for taking the questions. The first one is housekeeping. On the NII front, how much did the non-accrual recovery contribute to NII in the quarter? Daryl Bible: Yeah, great question. If you look at our average commercial non-accrual, it averages about $15 million a quarter. This quarter we got $20 million, so it was a little bit outsized. If you look at the first quarter, we didn't get $15 million. I can't remember what it was. Some single digit, maybe $6 million or $7 million. It was undersized. We average about $15 million a quarter. It's probably worth maybe 1 basis point in net interest margin by this $5 million more that we got. David Chiaverini: Thanks for that. On the net interest margin, you alluded to the incremental margin being lower. Could you talk about a normalized NIM level over the medium term for M&T? Daryl Bible: I would say we operate in the 4.60% is probably a range. Not 4, 3.60%, sorry about that. In the 3.60% is probably where we probably operate. We don't have any guidance going down to the lower range, you said over multiple years. Right now, we are at 3.70%, probably going down to the high to mid 3.60% right now and probably in that range or so. It really depends on the shape of the curve and how our funding and loan balances are. Operator: Thank you. We have one more question, this one from Chris McGratty with KBW. Please go ahead. Chris McGratty: Great. Thanks. Daryl, just on the expenses, the high end of the expenses on change. Maybe unpack where you're putting more dollars today, revenue producing, how that contributes to the outlook for fee income and net interest income. Thank you. Daryl Bible: Yeah. We have expense increases in technology, cyber, and all that. That's real and happening, and that's one of the risks definitely out in the industry right now. From a revenue perspective, we've invested heavily in our mortgage area. You can see that by how much more sub-servicing businesses we're winning in that space. That's a positive. We're investing in our treasury management areas really well. In the commercial platforms, we came out with our new CRE Warehouse business. We're investing in all the businesses we can to help make a difference and help serve our customers as much as possible. Operator: Okay. Thank you. At this time, there are no further questions in the queue. I'd like to turn the call back over to our speakers for any additional or closing remarks. Steve Wendelboe: Again, thank you all for participating today. As always, if any clarification is needed, please contact our investor relations department at 716-842-5138. Thank you. Operator: Thank you, ladies and gentlemen. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. 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Key insight: M&T expects its strong second-quarter performance to carry over into the third quarter, with increased levels of loan and deposit activity. Supporting data: The Buffalo, New York-based regional bank increased its full-year lending target by $1 billion. It's now projecting loans of $141 billion to $143 billion at year end. Expert quote: "We have a lot of momentum in the loan area." — Chief Financial Officer Daryl Bible Strong loan growth across its commercial-and-industrial and commercial real estate businesses propelled Buffalo-based M&T Bank Corp. to a record-high quarterly profit. The $216.5 billion-asset M&T reported second-quarter net income totaling $818 million Wednesday, up 14.2% from the same period last year. Net interest income of $1.79 billion increased 4.6%. Average CRE loans totaled $25.6 billion during the second quarter, up 0.39% from the first-quarter level of $25.5 billion. Though modest, the increase marked the CRE portfolio's first linked-quarter expansion since 2021, Chief Financial Officer Daryl Bible told analysts Wednesday. M&T had tamped down its CRE growth for a number of years in an effort to limit its exposure to a sector that was going through a rocky period. But Bible said on a conference call with analysts in October that the company was looking to switch gears and pursue more business. Growth in the commercial-and-industrial segment was more substantial between April and June. Average C&I loans totaled $66 billion, up 8% from the second quarter of 2025. "They had probably the best quarter you could probably ever have this past quarter," Bible said of M&T's C&I lenders. "I think 90% of all the businesses grew quarter-over-quarter. That just doesn't happen very often." The broad-based second-quarter loan growth — the consumer portfolio also expanded, by 5% to $26.7 billion — prompted M&T to add $1 billion to its full-year 2026 loan guidance. The company is now targeting $141 billion to $143 billion in year-end loans, up from the previous forecast of $140 billion to $142 billion. "We have a lot of momentum in the loan area," Bible said. "We expect all those portfolios to continue to grow in the third and fourth quarter. We may not have quite as much growth in the third and fourth quarters than we had in the second, but we're pretty positive these portfolios will continue to grow." Analysts' reactions to M&T's second-quarter report were mostly positive. Citi's Ben Gerlinger called it a "good quarter" in a research note. In his own note, Truist's Brian Foran characterized loan growth as "better than expected," while Evercore analyst John Pancari labeled the trend "definitely encouraging," commenting during the conference call. For the first few weeks of the second quarter, M&T's deposit gathering lagged its surging loan production. But senior management met with the leaders of M&T's various business lines around the quarter's midpoint and urged them to focus more on deposits, Bible said. "We basically had both oars in the water," Bible said. "Loans are growing nicely, and we had to [boost] our deposit growth up well." The renewed sense of urgency appeared to pay off. M&T' finished the quarter with average deposits of $163.5 billion, down a bit on a linked-quarter basis but slightly above the level reported on June 30, 2025. Much of the growth occurred in the final weeks of the quarter, setting M&T up for continued strength in the second half of 2026, according to Bible. "We have a lot of deposit momentum going forward," the CFO said. "It's the right thing to do to grow loans with core funding, which is what we're doing." Also during the second quarter, M&T reported declines in net charge-offs, nonaccrual loans and criticized loans. Bible said he hoped to see further declines in the levels of criticized loans in the second half of 2026, but added that the nonaccrual-loan number, $1.2 billion, or 84 basis points of total loans, leaves only limited room for improvement. "That's probably bumping along the bottom," Bible said. "It's like a two decade-low loan number, so that's probably going to bounce around there and not go much lower or higher than what we see today."