M&T Bank Corporation MTB has reported net operating earnings per share of $3.50 in fourth-quarter 2021, surpassing the Zacks Consensus Estimate of $3.29. The bottom line however compares unfavorably with the $3.54 per share reported in the year-ago period.A rise in non-interest income and recapture of provisions were tailwinds. Further, results highlight the company’s strong capital position during the quarter. However, a fall in net interest income (NII), net interest margin, and a rise in expenses were the key undermining factors.Net income in the reported quarter was around $458 million compared with the $471.1 million recorded in the prior year.For 2021, net operating earnings per share were $14.11 compared with the prior-year figure of $10.02. Net income was $1.86 billion, up 37%.Revenues Climb, Expenses RiseM&T Bank’s quarterly revenues totaled $1.51 billion, beating the consensus mark of $1.46 billion. The reported figure increased 3.2% year over year.In 2021, total revenues grew 4% from the prior year to $6.06 billion. The top line outpaced the Zacks Consensus Estimate of $5.95 billion.The NII decreased 6% year over year to $933.8 million in the fourth quarter. This was due to lower outstanding average loan balances and a reduced net interest margin. The net interest margin contracted 42 basis points (bps) to 2.58%.The company’s non-interest income was $579 million, up 5% year over year. A rise in service charges on deposit accounts, trust income and brokerage services income resulted in the upside.Non-interest expenses totaled $928 million, flaring up 10% from the prior-year period. The upsurge mainly stemmed from higher salaries and employee benefits, outside data processing and software expenses, and FDIC assessments costs.The efficiency ratio was 59.7%, up from 54.6% recorded in the year-earlier quarter. A higher ratio indicates a decline in profitability.Loans and leases, net of unearned discount, were $92.9 billion at the end of the reported quarter, down marginally from the prior quarter. Nonetheless, total deposits rose 2.2% to $131.5 billion.Credit Quality: A Mixed BagFor M&T Bank, credit metrics were a mixed bag in the fourth quarter. The company recorded a recapture of provision for credit losses of $15 million compared with the provisions of $75 million in the year-ago quarter. Net charge-offs of loans declined 68% on a year-over-year basis to $31 million.However, the ratio of non-accrual loans to total net loans was 2.22%, up 30 bps year over year. Non-performing assets rose 8% to $2.08 billion.Capital Position Strong, Profitability DeterioratesM&T Bank’s estimated ratio Common Equity Tier 1 to risk-weighted assets under regulatory capital rules was 11.4%, up from 10% as of Dec 31, 2020. Tangible equity per share was $89.80, up from $80.52 as of Dec 31, 2020.M&T Bank's return on average tangible assets (annualized) and average tangible common shareholder equity of 1.23% and 15.98%, respectively, compared with 1.35% and 17.53% recorded in the prior-year quarter.Our ViewpointM&T Bank put up a strong performance in the fourth quarter. The contraction of margins and elevated expenses were headwinds. The fall in loan balance might hurt organic growth in the days to come. Nonetheless, a sturdy business model and acquisitions poised it well for growth.M&T Bank Corporation Price, Consensus and EPS Surprise M&T Bank Corporation price-consensus-eps-surprise-chart | M&T Bank Corporation QuoteCurrently, M&T Bank carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other BanksFirst Republic Bank’s FRC fourth-quarter 2021 earnings per share of $2.02 surpassed the Zacks Consensus Estimate of $1.91. Additionally, the bottom line improved 26.3% from the year-ago quarter’s level.FRC’s quarterly results were supported by an increase in NII and non-interest income. Moreover, First Republic’s balance-sheet position was strong in the quarter. However, higher expenses and elevated net loan charge-offs were the offsetting factors.Citigroup Inc. C delivered an earnings surprise of 5.04% in fourth-quarter 2021. Income from continuing operations per share of $1.46 handily outpaced the Zacks Consensus Estimate of $1.39. However, the reported figure declined 24% from the prior-year quarter’s level.Citigroup’s investment banking revenues jumped in the quarter under review, driven by equity underwriting as well as growth in advisory revenues. However, fixed-income revenues were down due to declining rates and spread products.U.S. Bancorp USB reported fourth-quarter 2021 earnings per share of $1.07, which missed the Zacks Consensus Estimate of $1.11. Results, however, compared favorably with the prior-year quarter’s figure of 95 cents.Though lower revenues and escalating expenses were disappointing factors, credit quality acted as a tailwind. Growth in loan and deposit balance, and a strong capital position were the encouraging factors. Moreover, U.S. Bancorp has closed the acquisition of San Francisco-based fintech firm, TravelBank, which offers technology-driven cost and travel management solutions. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. As one investor put it, “curing and preventing hundreds of diseases…what should that market be worth?” This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Citigroup Inc. (C): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report M&T Bank Corporation (MTB): Free Stock Analysis Report First Republic Bank (FRC): Free Stock Analysis Report To read this article on Zacks.com click here.