M&T Bank Corp (MTB.N): 2Q26 Review - Great Quarter With Fee Drivers and Loan Growth Shining Through

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M&T Bank Corp (MTB.N): 2Q26 Review - Great Quarter With Fee Drivers and Loan Growth Shining Through

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17 Jul 2026 06:54:42 ET │ 15 pages

M&T Bank Corp (MTB.N)

2Q26 Review - Great Quarter With Fee Drivers and Loan Growth Shining

Through

CITI'S TAKE Neutral

Price (16 Jul 26 16:00) US$254.04 With better-than-expected loan growth supporting NII against a relatively

Target price US$225.00 low bar heading into the print, MTB outperformed on earnings day (up

~2.8% vs BKX up ~1.5%). Heading into the quarter, we expected focus Expected share price return -11.4%

centered around on loan/deposit growth and mgmt delivered on growth in Expected dividend yield 2.5%

key loan portfolios, including CRE (eop up ~5% q/q) and direct/indirect Expected total return -9.0%

consumer, as well as strong deposit growth easing wholesale funding Market Cap US$36,819M

pressure. Thus far, MTB is one of few to benefit from lower deposit costs,

though we believe deposit pricing is now near a floor and see terminal beta

settling around ~53% absent Fed cuts/hikes. We raise our estimates

higher on stronger NII, reflective of improved loan growth, as well as a Benjamin GerlingerAC

better fee outlook driven by larger subservicing portfolio. The +1-212-816-3538

fundamentals are looking better, though trading below the universe benjamin.gerlinger@citi.com

median (9.1% vs. 9.8% median) on our implied cost-of-equity metric, we Mikhail Mrotchek

prefer the risk/reward elsewhere. +1-212-816-2345

misha.mrotchek@citi.com

Estimate Changes — Our 2026E EPS increases 80c to $19.50 (vs. FactSet Kaili Wang, CFA

consensus of $18.97), 2027E EPS increases 40c to $21.05 (vs. FactSet consensus of +1-716-730-7408

$21.01), and 2028E EPS increases 30c to $23.50. See Figure 1 for more detail on kaili.wang@citi.com