M&T Bank’s third quarter performance met Wall Street’s revenue expectations, but the market responded negatively, reflecting investor concerns about funding costs and efficiency. Management attributed results to loan growth in commercial real estate and consumer segments, along with successful deposit gathering that reduced reliance on short-term borrowings. CFO Daryl Bible noted that deposit growth was driven by “commercial mortgage, business banking and time deposits,” helping to offset higher funding costs. Despite stable asset quality, the efficiency ratio ticked up, with management citing ongoing technology investments and litigation-related expenses as contributing factors.

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

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

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

• Daniel Tamayo (Raymond James): Asked about the remaining benefits from shifting funding from borrowings to deposits and the sustainability of deposit cost trends. CFO Daryl Bible explained that most of the recent increase was from time deposits and expected future cost increases to be “normal repricing.”

• Bill Young (TD Cowen): Questioned whether commercial real estate growth could continue against a higher rate backdrop. Bible responded that, while higher rates make new projects more challenging, the team expects “mid-single digit” growth and is leveraging both on- and off-balance-sheet capabilities.

• Girard Sweeney (Evercore): Inquired about the uptick in criticized assets and whether it reflected broader macro pressures. Bible described most increases as “idiosyncratic,” particularly in specific auto leasing and franchise credits, and expects levels to “bounce along the bottom.”

• Ryan Kenny (Morgan Stanley): Sought clarity on fee income resilience in a higher-rate environment. Bible highlighted the strength of mortgage servicing and capital markets, noting that some fee lines are “countercyclical” and could offset weaker mortgage originations.

• Chris O'Connell (KBW): Asked about loan and securities pricing dynamics after recent rate hikes. Bible stated that loan pricing was “up about 10 basis points” in the quarter and that asset repricing would continue to support yields in coming quarters.

Catalysts in Upcoming Quarters

In coming quarters, the StockStory team will focus on (1) the pace and sustainability of deposit growth and its impact on funding costs, (2) the ability of the commercial real estate and consumer portfolios to maintain momentum despite a higher rate environment, and (3) execution on technology and AI-driven efficiency initiatives. Changes in fee income mix, especially from mortgage servicing and capital markets, will also be key areas to monitor.

M&T Bank currently trades at $215.16, down from $218.70 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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