Shares of M&T Bank Corporation (NYSE:MTB) edged higher in pre-market trading on Thursday after the lender delivered third-quarter results that topped Wall Street expectations, supported by robust fee income and stronger credit metrics. The stock rose 0.76% ahead of the market open following the earnings release.
For the third quarter, the Buffalo-based bank reported adjusted earnings per share of $4.87, handily beating analysts’ estimate of $4.42. Total revenue reached $2.51 billion, outpacing the consensus forecast of $2.44 billion.
Net income came in at $792 million, a 10% increase from $721 million a year earlier. Taxable-equivalent net interest income grew 2% year over year to $1.77 billion, with the net interest margin improving to 3.68% from 3.62% in the prior-year quarter.
Noninterest income climbed 24% YoY to $752 million, helped by a $28 million distribution tied to the bank’s 2023 sale of its Collective Investment Trust business and a $20 million distribution from its investment in Bayview Lending Group.
“M&T’s businesses generated strong fee income in 2025 and contributed to M&T’s earnings growth in the recent quarter,” said Daryl N. Bible, M&T’s Chief Financial Officer. “Our improved credit quality and loan growth each reflect the dedication of our teams to prudent lending in service of our customers and communities.”
Credit quality strengthened, with the allowance for loan losses as a percentage of total loans declining to 1.58% from 1.62% in the prior year. Nonaccrual loans fell 21% year over year to $1.51 billion.
Total loans grew 1% from a year earlier to $137 billion. Consumer lending increased 14%, while residential real estate loans rose 7%, partially offset by a 16% drop in commercial real estate loans.
M&T also returned capital to shareholders during the quarter, repurchasing 2.1 million shares of common stock for $409 million. The bank ended the period with a Common Equity Tier 1 capital ratio of 10.99%.
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