Truist Sees Slightly Better Long-Term Earnings Power at M&T Bank (MTB)

M&T Bank Corporation (NYSE:MTB) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

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On January 20, Truist raised its price target on M&T Bank Corporation (NYSE:MTB) to $230 from $217 and kept a Hold rating after the bank posted a fourth-quarter earnings beat. The analyst noted that expenses ran a bit above the midpoint of management’s guidance. Buybacks also came in slightly below what the firm had modeled based on CET1 levels. Even so, those moving pieces were enough to nudge Truist’s 2027 EPS estimate up to $22 from $21.

M&T reported higher profit for the fourth quarter on January 16, helped by stronger interest income and a rebound in mortgage banking. Rate cuts from the Federal Reserve have started to loosen things up again. Borrowing activity picked up, loan balances grew, and banks found some relief on the funding side as deposit costs eased.

Net interest income rose nearly 3% from a year earlier to $1.78 billion. Net interest margin expanded to 3.69%, up from 3.58%, showing the bank is still managing spreads well even in a lower-rate environment.

Looking ahead, M&T expects net interest income of $7.2 billion to $7.35 billion in 2026. The midpoint of that range lines up closely with the Street’s estimate of about $7.27 billion, based on LSEG data.

Non-interest income also moved higher, rising about 6% to $696 million for the quarter. Mortgage banking was a key driver. Revenue in that segment jumped 32%, fueled by higher servicing income on residential loans and stronger gains from commercial mortgage loan sales. Fees from deposit accounts and trust services also helped.

On the credit side, the bank set aside $125 million in provisions for potential loan losses, down from $140 million a year earlier. That suggests credit quality remains steady for now.

M&T Bank Corporation (NYSE:MTB) is a financial holding company whose main subsidiary, M&T Bank, operates a broad branch and ATM network across the eastern US, stretching from Maine down through Virginia and Washington, D.C.

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