** Shares of regional lender M&T Bank MTB.N fall 1.7% to $210.69 after J.P. Morgan downgrades stock to "neutral" from "overweight"

** Brokerage says MTB stock has shown strong outperformance YTD compared to its regional bank coverage universe

** Adds that there is a lack of an additional catalyst for the continued outperformance of MTB shares

** JPM believes MTB's office commercial real estate exposure and relatively lower loan loss reserves are likely to remain a headwind even as the bank works on shrinking its exposure to the beleaguered sector

** Office CRE exposure is likely to remain an overhang for the stock — JPM

** Eleven of 22 brokerages rate the stock "buy" or higher, 10 "hold" and one "sell"; median PT is $223.50 — LSEG

** As of last close, MTB shares up 56.4% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))