M&T Bank Corporation — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported net income of $775 million ($5.04 diluted EPS) for the third quarter of 2026, a decrease from $792 million ($4.82 diluted EPS) in the same period of 2025 and $818 million ($5.32 diluted EPS) in the second quarter of 2026.
• Net interest income (taxable-equivalent) was $1,805 million, up 2% year-over-year from $1,773 million in Q3 2025 and flat compared to $1,804 million in Q2 2026.
• Noninterest income was $743 million, down 1% year-over-year from $752 million in Q3 2025 and flat compared to $740 million in Q2 2026.
• Noninterest expense was $1,393 million, up 2% year-over-year from $1,363 million in Q3 2025 and up 3% from $1,349 million in Q2 2026.
• Provision for credit losses was $135 million, an increase from $125 million in Q3 2025 and $120 million in Q2 2026.
• Net interest margin was 3.65%, down from 3.69% in Q3 2025 and 3.70% in Q2 2026.
• Return on average assets was 1.40%, down from 1.49% in Q3 2025 and 1.51% in Q2 2026.
• Return on average common shareholders' equity was 11.44%, down from 11.45% in Q3 2025 and 12.30% in Q2 2026.
• Total assets were $220,510 million at September 30, 2026, up 4% from $211,277 million at September 30, 2025.
• Average loans grew to $143,296 million, up 5% from $135,890 million in Q3 2025.
• Deposits were $167,510 million at period end, up 2% from $163,426 million in Q3 2025.
• Efficiency ratio was 54.4%, up from 53.6% in Q3 2025 and 52.8% in Q2 2026.
• Net charge-offs were $127 million, an increase from $146 million in Q3 2025 (net charge-offs decreased year-over-year) and $80 million in Q2 2026.
• Allowance for loan losses to total loans was 1.51% at September 30, 2026, down from 1.59% in Q3 2025.

Business Segments and Product Lines

• Average commercial real estate loan balances increased by $1.6 billion in the quarter.
• Average consumer loan balances increased by $634 million.
• Average residential real estate loan balances increased by $367 million.
• Trust and investment services income was $230 million, up 6% year-over-year.
• Mortgage banking revenues were $152 million, up 3% year-over-year, driven by residential mortgage loan sub-servicing income; the company began sub-servicing an additional $62.9 billion of residential mortgage loans in June 2026.
• Capital markets and advisory revenues were $32 million, down 8% year-over-year due to lower loan syndication fees and interest rate swap transaction revenues.
• Other revenues from operations were $85 million, down 25% year-over-year, primarily due to a lower distribution from the investment in Bayview Lending Group LLC (BLG).
• Effective January 1, 2026, the company elected to measure residential mortgage loan servicing right assets at fair value, with changes reflected in mortgage banking revenues.

Capital and Liquidity

• Common Equity Tier 1 (CET1) capital ratio was estimated at 10.16% at September 30, 2026, down from 10.99% in Q3 2025.
• Tangible common equity to tangible asset ratio declined 22 basis points from June 30, 2026.
• M&T repurchased 1.3 million shares of common stock for $323 million in the quarter.
• Cash dividends declared on common and preferred stock totaled $217 million and $42 million, respectively.
• Estimated Liquidity Coverage Ratio (LCR) was 107% at September 30, 2026.
• Accumulated other comprehensive income declined $588 million due to rising interest rates.
• In July 2026, the company transferred $8.3 billion of residential mortgage-backed securities from available-for-sale to held-to-maturity portfolios.

Management Commentary and Tone

• CFO Daryl N. Bible described results as highlighted by strong loan and deposit growth, stable credit, and a solid capital position.
• Management noted that fee income reflects the breadth of the franchise and the ability to meet evolving customer needs.
• The tone emphasized the value of the diversified business model and the depth of customer relationships.

Other Key Points

• The company reported a 2% increase in taxable-equivalent net interest income year-over-year, driven by loan and investment securities growth, partially offset by lower yields received on loans.
• Noninterest expense increases were attributed to higher outside data processing and software costs, professional services, and personnel costs from an additional working day.
• The effective income tax rate was 23.1% for both the third and second quarters of 2026.
• Full-service domestic banking offices decreased to 906 from 942 in Q3 2025.
• Full-time equivalent employees decreased to 21,562 from 22,383 in Q3 2025.
• The company made certain changes and reclassifications to Other income categories and began separately presenting loans held for sale from loans held for investment effective for the third quarter of 2026.