Scott Seifers

Scott Seifers asked about M&T Bank's loan growth, specifically the timing and magnitude of an inflection point for the Commercial Real Estate (CRE) book, and the bank's M&A strategy within the consolidating regional banking environment, including potential geographic expansion.

Answer

Daryl Bible, SEVP and CFO, indicated optimism for CRE growth in the next quarter or two, driven by increased production in multifamily and industrial sectors. Regarding M&A, Mr. Bible stated M&T's strategy remains focused on growing share in existing markets, with future acquisitions likely within or adjacent to their current footprint, emphasizing their disciplined approach.

Scott Seifers asked about PNC's margin performance and outlook, specifically how the third-quarter commercial deposit growth impacted the Net Interest Margin (NIM) and why this compression isn't indicative of the future path towards a 3% NIM in 2026. He also inquired about the expected increase in fourth-quarter expenses and the full-year expense outlook.

Answer

EVP and CFO Rob Reilly explained that the outsized $9 billion commercial interest-bearing deposit growth, while NII accretive, caused a 4-5 basis point NIM compression due to a mix change, but the overall NIM expansion trajectory towards 3% in 2026 remains unchanged. Regarding expenses, Mr. Reilly clarified that the full-year expense guidance increased from 1% to 1.5% due to better-than-expected non-interest income performance, which drove higher variable compensation, categorizing these as 'good expenses.'