How did MTB's Q4 2024 EPS outperform forecasts?

M&T Bank's Q4 2024 EPS outperformed forecasts due to several key factors:

1. **Strong Loan and Lease Growth**: M&T Bank reported significant growth in both deposits and loans, with average total deposits increasing by over $3 billion sequentially. This marks the fifth consecutive quarter of loan growth, showcasing the bank's strategic focus on reducing commercial real estate concentration while maintaining robust lending activity.
2. **Fee Income Growth**: Fee income reached a record high for the fourth quarter, driven largely by strength in mortgage and trust services. This growth in fee-based revenue streams highlights the bank's diverse income sources and ability to capitalize on various market opportunities.
3. **Effective Cost Management**: Despite a fall in deposit balance being a headwind, the bank's focus on cost management and efficiency improvements likely contributed to the positive earnings surprise. M&T Bank demonstrated improvement in asset quality with a $1 billion reduction in commercial criticized loans and a $236 million reduction in nonaccrual loans, reflecting effective risk management practices.

In summary, M&T Bank's Q4 2024 EPS outperformance can be attributed to strong loan and lease growth, significant fee income, and effective cost management. These factors collectively contributed to the bank's robust financial performance and earnings beat expectations.