MTB

Huntington Bancshares Incorporated HBAN reported third-quarter 2026 adjusted earnings per share (EPS) of 38 cents, which matched the Zacks Consensus Estimate. The bottom line declined from 40 cents in the year-ago quarter. Results benefited from higher net interest income (NII), an expansion in net interest margin (NIM) and increased fee income. Growth in average deposit balances on a sequential basis also provided support. However, higher non-interest expenses, a sequential decline in average loan balance and deterioration in credit quality were headwinds. The reported quarter's results excluded 5 cents per share of the after-tax impact of notable items, primarily acquisition-related expenses. After considering these, net income attributable to Huntington (GAAP basis) was $721 million, up 14.6% year over year. Total quarterly revenues (on a fully taxable-equivalent or FTE basis) increased 30.7% year over year to $2.81 billion. The top line marginally missed the Zacks Consensus Estimate of $2.82 billion. NII (FTE basis) was $2.09 billion, up 37.2% from the prior-year quarter. The increase reflected higher average earning assets and an expansion in NIM. NIM rose 12 basis points year over year to 3.25%, supported by lower deposit costs. Non-interest income increased 14.9% year over year to $722 million. The improvement was driven by higher payments and cash management revenues, capital markets and advisory fees, wealth and asset management revenues, and customer deposit and loan fees. Non-interest expenses surged 42.2% year over year to $1.77 billion. The rise was primarily due to higher personnel costs, outside data processing and other services, net occupancy expenses, amortization of intangibles and other costs. Adjusted non-interest expenses increased 33.7% to $1.66 billion, mainly reflecting the impact of recent acquisitions. The efficiency ratio was 61.2%, up from 57.4% in the year-ago quarter. A rise in the efficiency ratio indicates lower profitability. Average loans and leases at Huntington declined 0.4% sequentially to $188.4 billion, driven by lower commercial real estate and consumer loan balances, partly offset by growth in commercial and industrial loans. Average total deposits increased 0.2% to $223.8 billion on a sequential basis. The rise was supported by higher interest-bearing demand and money market deposit balances, partly offset by lower time deposits. Net charge-offs were $146 million, up from $75 million in the prior-year quarter. The quarter-end allowance for credit losses increased to $3.36 billion from $2.56 billion a year ago. Total non-performing assets were $1.72 billion as of Sept. 30, 2026, up from $821 million in the year-ago quarter. Net charge-offs as a percentage of average total loans and leases were 0.31%, up from 0.22% in the prior-year quarter. In the third quarter, the company recorded a provision for credit losses of $123 million, marginally up from $122 million in the year-ago period. The common equity tier 1 (CET1) risk-based capital ratio was 10.1% in the third quarter, down from 10.6% in the year-ago period. The regulatory Tier 1 risk-based capital ratio was 11.5%, down from 12.4% in the comparable period in 2025. The tangible common equity to tangible assets ratio was 6.9%, up from 6.8% in the year-ago quarter. During the third quarter, Huntington repurchased $100 million of common shares. The company repurchased $409 million, or approximately 25 million shares, in the first nine months of 2026. Huntington's recent acquisitions and efforts to expand its commercial banking, payments and wealth management businesses are expected to support revenue growth. The company completed its Cadence cost synergy actions during the third quarter, while benefits from the Veritex acquisition continue to materialize. Management expects approximately 34% revenue growth in 2026 and stable NIM in the fourth quarter of 2026. These factors, along with disciplined expense management and continued investments in growth markets, bode well for long-term prospects. However, elevated operating expenses, rising non-performing assets and higher net charge-offs remain concerns. Huntington Bancshares Incorporated price-consensus-eps-surprise-chart | Huntington Bancshares Incorporated Quote Currently, Huntington carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Fifth Third Bancorp FITB reported third-quarter 2026 adjusted earnings per share (EPS) of $1.13, which surpassed the Zacks Consensus Estimate of $1.09. In the prior-year quarter, the company posted adjusted EPS of 93 cents. FITB's results benefited from solid growth in net interest income and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial year-over-year rise in non-interest expenses acted as a headwind. M&T Bank Corporation MTB reported third-quarter net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 in the year-ago quarter. MTB's results were aided by higher net interest income and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds. 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 Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report Fifth Third Bancorp (FITB) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Fifth Third Bancorp FITB reported third-quarter 2026 adjusted earnings per share (EPS) of $1.13, which surpassed the Zacks Consensus Estimate of $1.09. In the prior-year quarter, the company posted adjusted EPS of 93 cents. Results benefited from solid growth in net interest income (NII) and fee income, along with higher loan and deposit balances. Lower provisions for credit losses also offered support. However, a substantial year-over-year rise in non-interest expenses acted as a headwind. Results excluded a negative 23-cent impact of certain items, including merger-related charges, interchange litigation matters and technology-related asset impairments. After considering these, the company reported net income available to common shareholders (GAAP basis) of $828 million, up 36% year over year. Total quarterly revenues (FTE) in the reported quarter were $3.28 billion, which increased 42% year over year. The top line missed the Zacks Consensus Estimate of $3.34 billion. Fifth Third's NII (on an FTE basis) for the third quarter was $2.28 billion, up 49% year over year. This improvement primarily reflected the addition of Comerica. Continued fixed-rate asset repricing and balance sheet management also aided growth. The net interest margin (NIM) (on an FTE basis) increased to 3.34% from 3.13% in the year-ago quarter. Non-interest income rose 29% year over year to $1.01 billion. The increase was primarily driven by higher wealth and asset management revenues, commercial payments revenues, consumer banking revenues, capital markets fees and commercial banking revenues, partly offset by a decline in mortgage banking net revenues and other non-interest income. Non-interest expenses surged 62% year over year to $2.05 billion. The increase was primarily due to a rise across all cost components, particularly compensation and benefits, technology and communications, and other non-interest expenses. Merger-related charges also contributed to elevated expenses. The efficiency ratio was 62.4%, higher than the year-ago quarter's 54.9%. An increase in the ratio indicates a deterioration in profitability. As of Sept. 30, 2026, portfolio loans and leases rose 1% to $180.3 billion from the previous quarter. Total deposits increased 2% sequentially to $239 billion. The company reported a provision for credit losses of $122 million, down 38% from the year-ago quarter. Total non-performing portfolio loans and leases were $1.07 billion, up from $768 million in the prior-year quarter. However, the non-performing loan ratio improved to 0.59% from 0.62% in the year-ago quarter. Net charge-offs in the third quarter declined to $139 million or 0.31% of average loans and leases (on an annualized basis) from $339 million or 1.09% in the prior-year quarter. The total allowance for credit losses rose 30% year over year to $3.13 billion. The allowance for credit losses represented 1.74% of portfolio loans and leases, down from 1.96% in the year-ago quarter. The CET1 capital ratio was 10.02% compared with 10.57% in the year-ago quarter. The Tier 1 risk-based capital ratio was 10.90% compared with 11.63% in the prior-year quarter. The leverage ratio declined marginally to 9.22% from 9.24% in the year-ago quarter. Commercial Banking reported NII (FTE) of $1.15 billion compared with $594 million in the year-ago quarter. Non-interest income increased to $512 million from $357 million, while non-interest expenses rose to $761 million from $454 million. Consumer and Small Business Banking reported NII (FTE) of $1.27 billion compared with $1.08 billion in the prior-year quarter. Non-interest income increased to $326 million from $309 million, while non-interest expenses rose to $855 million from $653 million. Wealth and Asset Management reported NII (FTE) of $112 million compared with $55 million in the year-ago quarter. Non-interest income increased to $183 million from $109 million, while non-interest expenses rose to $182 million from $93 million. For the fourth quarter of 2026, Fifth Third expects average loans and leases to rise 1-2% sequentially. NII is projected to increase 2.5-3.5% from the third-quarter baseline of $2.28 billion, while non-interest income is expected to rise 2-4% from the baseline of $1.05 billion. Adjusted non-interest expenses are expected to decline 2-3% sequentially from the third-quarter baseline of $1.82 billion. The net charge-off ratio is projected to be between 30 and 35 basis points, while the effective tax rate is expected to be 22.5%. Strong growth in NII, driven by the addition of Comerica, continued fixed-rate asset repricing and disciplined balance sheet management, supported top-line expansion. The company also witnessed solid growth in loans and deposits, reflecting improving business momentum. Broad-based fee income growth and lower provisions were other positives. The decline in the net charge-off ratio also reflected improved credit performance. However, elevated year-over-year expenses, higher deposit costs and lower year-over-year capital ratios remain near-term concerns. On the acquisition front, Fifth Third successfully completed the Comerica systems conversion during the third quarter, with strong client and banker retention. The company also secured the full $850 million annualized expense run rate, which is expected to be realized in the fourth quarter of 2026. Fifth Third Bancorp price-consensus-eps-surprise-chart | Fifth Third Bancorp Quote Currently, Fifth Third 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 Banks M&T Bank Corporation MTB reported third-quarter 2026 net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 in the year-ago quarter. MTB's results were aided by higher NII and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds. The PNC Financial Services Group, Inc. PNC has delivered adjusted earnings per share of $5.09 in the third quarter of 2026, beating the Zacks Consensus Estimate of $4.97. The bottom line increased 17% from $4.35 in the year-ago quarter. PNC's results reflected higher NII, solid loan and deposit growth and improved operating efficiency. However, higher expenses and increased net loan charge-offs were headwinds. 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 Fifth Third Bancorp (FITB) : Free Stock Analysis Report The PNC Financial Services Group, Inc (PNC) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

M&T Bank's third quarter performance met Wall Street's revenue expectations, but the market responded negatively, reflecting investor concerns about funding costs and efficiency. Management attributed results to loan growth in commercial real estate and consumer segments, along with successful deposit gathering that reduced reliance on short-term borrowings. CFO Daryl Bible noted that deposit growth was driven by "commercial mortgage, business banking and time deposits," helping to offset higher funding costs. Despite stable asset quality, the efficiency ratio ticked up, with management citing ongoing technology investments and litigation-related expenses as contributing factors. Is now the time to buy MTB? Find out in our full research report (it's free). - Revenue: $2.40 billion vs analyst estimates of $2.53 billion (3.8% year-on-year decline, 5.2% miss) - Adjusted EPS: $5.04 vs analyst estimates of $4.92 (2.4% beat) - Market Capitalization: $30.94 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. - Daniel Tamayo (Raymond James): Asked about the remaining benefits from shifting funding from borrowings to deposits and the sustainability of deposit cost trends. CFO Daryl Bible explained that most of the recent increase was from time deposits and expected future cost increases to be "normal repricing." - Bill Young (TD Cowen): Questioned whether commercial real estate growth could continue against a higher rate backdrop. Bible responded that, while higher rates make new projects more challenging, the team expects "mid-single digit" growth and is leveraging both on- and off-balance-sheet capabilities. - Girard Sweeney (Evercore): Inquired about the uptick in criticized assets and whether it reflected broader macro pressures. Bible described most increases as "idiosyncratic," particularly in specific auto leasing and franchise credits, and expects levels to "bounce along the bottom." - Ryan Kenny (Morgan Stanley): Sought clarity on fee income resilience in a higher-rate environment. Bible highlighted the strength of mortgage servicing and capital markets, noting that some fee lines are "countercyclical" and could offset weaker mortgage originations. - Chris O'Connell (KBW): Asked about loan and securities pricing dynamics after recent rate hikes. Bible stated that loan pricing was "up about 10 basis points" in the quarter and that asset repricing would continue to support yields in coming quarters. In coming quarters, the StockStory team will focus on (1) the pace and sustainability of deposit growth and its impact on funding costs, (2) the ability of the commercial real estate and consumer portfolios to maintain momentum despite a higher rate environment, and (3) execution on technology and AI-driven efficiency initiatives. Changes in fee income mix, especially from mortgage servicing and capital markets, will also be key areas to monitor. M&T Bank currently trades at $215.16, down from $218.70 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it's free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

M&T Bank entered this Q3 2026 report with a reputation as a steady, high return regional lender trading on a modest P/E and a perception of dependable execution. The stock slipped about 1.5% on the first trading day after the release, yet the headline number told a cooler story than that price move suggests. Net income reached US$732m, with basic earnings per share of US$5.08 and a net interest margin of 3.65%, while the cost to income ratio ticked to 54.4%. The real friction point is a gentle squeeze on profitability rather than a collapse in core banking performance. Like the strong net interest margin at M&T Bank but uneasy about that creeping cost to income ratio and softer profitability? Check out the list of solid balance sheet and fundamentals stocks (25 results) - Total Revenue (Q3 2026 vs. Q3 2025): US$2,401m vs. US$2,388m (slight increase) - Net Income, excl. extra items (Q3 2026 vs. Q3 2025): US$732m vs. US$754m (decline) - Basic EPS (Q3 2026 vs. Q3 2025): US$5.08 vs. US$4.85 (growth) - Net Interest Margin, NIM (Q3 2026 vs. Q3 2025): 3.65% vs. 3.68% (slight compression) Earnings tell you what M&T Bank reported this quarter, but cash flows tell you what investors are actually paying for over time. When you focus on M&T Bank's cash flows alone, the stock could be a whopping 47% undervalued. Bulls argue M&T Bank can lean on a strong capital base to keep buybacks humming and support per share earnings power. "M&T Bank is focused on capital and liquidity strength, with a CET1 ratio around the 10% to 10.5% range and an intention to run toward the lower end, which can leave room for future share repurchases that support earnings per share and return on tangible common equity." Q3 results line up with that script. CET1 sits at 10.16%, inside the targeted band, after US$323m of buybacks and loan driven risk weighted asset growth. Net income of US$775m and operating ROTCE of 17.3% keep returns comfortably above management incentive hurdles. The bear camp worries that higher operating spend and pricier deposits will eat into M&T Bank's margin story faster than tech benefits arrive. "Increased labor and compensation expenses leading to higher noninterest expenses might continue to weigh on profitability. This risk is now reinforced by noninterest expense running at about US$1.35b in Q2 2026 and guidance that full year 2026 expenses will be at the high end of the US$5.5b to US$5.6b range, which could constrain net margins if revenue growth does not keep pace." Q3 bears this out. Noninterest expense stepped up to US$1.39b while net interest margin compressed to 3.65% and deposit costs climbed to 2.05% as interest bearing balances grew and noninterest deposits slipped. Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there. M&T Bank just showed how a small share price move can mask a more nuanced earnings story. The real opportunity is finding stocks that could be undervalued before the market corrects them. - Company 1 - 39% below our estimate - helps large digital platforms accept and send local payments as transaction volumes expand across emerging markets and diverse use cases. - Company 2 - 27% below our estimate - supplies complex circuit hardware as AI data center workloads and long term defense programs utilize newly built high end manufacturing capacity. - Company 3 - 30% below our estimate - anchors digital infrastructure by providing custom chips and software that handle, connect and secure increasing data flows across critical computing workloads. That is three of the list. See all 33 potentially undervalued companies → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MTB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

M&T Bank Corporation (MTB) came out with quarterly earnings of $5.08 per share, beating the Zacks Consensus Estimate of $4.98 per share. This compares to earnings of $4.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.01%. A quarter ago, it was expected that this company would post earnings of $4.66 per share when it actually produced earnings of $5.35, delivering a surprise of +14.81%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. M&T Bank, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $2.55 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $2.51 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. M&T Bank shares have added about 8.5% since the beginning of the year versus the S&P 500's gain of 13.1%. While M&T Bank has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for M&T Bank was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.05 on $2.56 billion in revenues for the coming quarter and $19.42 on $10.09 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Fifth Third Bancorp (FITB), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 19. This company is expected to post quarterly earnings of $1.09 per share in its upcoming report, which represents a year-over-year change of +17.2%. The consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. Fifth Third Bancorp's revenues are expected to be $3.34 billion, up 45.3% from the year-ago quarter. 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 M&T Bank Corporation (MTB) : Free Stock Analysis Report Fifth Third Bancorp (FITB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Friday, October 16th, 2026 The first full week of Q3 earnings season is nearly complete, and results are somewhat mixed so far. As Zacks Director of Research Sheraz Mian said earlier this week in his Earnings Trends release, early Q3 reports are "tracking modestly below" recent quarters over the same time period. Pre-market futures are mixed slightly again this morning, with the Dow — looking to close higher for its second-straight week — up +27 points, the tech-(and AI-)heavy Nasdaq — hoping to avoid its worst trading week since July — is down -42 points. The S&P 500 splitting the difference at +11 points. The small-cap Russell 2000 is presently +4 points. September Import Prices from the U.S. Bureau of Labor Statistics (BLS) came in at their highest rate since May: +1.1%, versus expectations of +0.8%, and more than double the previous month's downwardly revised +0.5%. Subtracting potentially volatile fuel prices, this number adjusts to +0.8% — still higher than expected. Year over year, +8.1% is the most expensive Imports month since July of 2022. Ex-petrol, this only drops to +6.0%. Exports rose +2.2% last month, up from +1.2% posted for August. Agriculture exports grew by the highest number since November of 2022. Year over year, exports blossomed to +11.6%. While it's good to see Exports earn more than Imports, we're still looking at higher global inflation numbers, when it's all said and done. Also out this morning is the October Services report from the Federal Reserve of New York: -20.7 is well below the -4.1 analysts were expecting, and hitting its lowest level since March of this year. This follows -8.7 print from September. This is the most rapid selling price since 2022, on weaker cap ex spending. There is also a pessimistic outlook for the tri-state (NY, NJ, CT) area. Compare this with the robust +25.5 posted in the Empire State manufacturing report earlier this week. Dow component The Travelers TRV stormed the gates in Q3 earnings this morning, posting a +29.84% earnings surprise to $9.18 per share (from an expected $7.07). Revenues of $12.45 billion were modestly higher than the Zacks consensus, and almost flat year over year. Shares are down -3% on the news, giving back some of its +32% gains year to date. For more on TRV's earnings, click here. Elsewhere, we saw quarterly reports from regional banks Regions Financial RF, Citizens Financial Group CFG and M&T Bank MTB. All three beat on earnings: +8.96%, +2.17% and +2.01%, respectively, but only Regions is higher in pre-market trading following the releases, with shares up +1.2%. Next week, earnings season shifts to a higher gear, with Netflix NFLX — which just announced a replacement of its CCO from Bela Bajaria to entertainment exec Peter Rice — joining Tesla TSLA reporting after Tuesday's close. On Thursday, we'll see Q3 results from Meta Platforms META, General Motors GM and Intuitive Surgical ISRG. Questions or comments about this article and/or author? Click here>> 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 Regions Financial Corporation (RF) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report M&T Bank Corporation (MTB) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Citizens Financial Group, Inc. (CFG) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of M&T Bank Corporation MTB declined nearly 1.2% in the early trading session despite the company's better-than-expected third-quarter 2026 results. It reported third-quarter net operating earnings per share of $5.08, which beat the Zacks Consensus Estimate of $4.98. The bottom line compared favorably with earnings of $4.87 in the year-ago quarter. Results were aided by higher net interest income (NII) and loan growth. However, lower non-interest income and higher expenses, along with a sequential decline in deposits, acted as headwinds. Net income available to common shareholders was $732 million, down 2.9% from the prior-year quarter. MTB's quarterly revenues were $2.55 billion, surpassing the Zacks Consensus Estimate of $2.54 billion. The reported figure increased nearly 1% year over year on a GAAP basis. NII (tax-equivalent) rose 1.8% year over year to $1.81 billion. The increase reflected lower rates paid on average interest-bearing deposits and growth in average loans and investment securities, partially offset by lower yields received on loans. Total non-interest income was $743 million, down 1.2% year over year. The decline was driven by lower capital markets and advisory revenues, and other revenues from operations. However, higher trust and investment services income, mortgage banking revenues, service charges on deposit accounts and letter of credit and credit-related fees partially offset the decline. Total non-interest expenses were $1.39 billion, up 2.2% year over year. The increase was due to higher outside data processing and software costs, professional and other services costs, FDIC assessments and advertising and marketing expenses. The efficiency ratio was 54.4%, up from 53.6% in the year-earlier quarter. A higher ratio indicates a decline in profitability. Total loans were $144.8 billion as of Sept. 30, 2026, up 1.6% from the prior quarter. Total deposits declined nearly 1% to $167.5 billion on a sequential basis. Net charge-offs decreased 13% to $127 million from the prior-year quarter. The company recorded a provision for credit losses of $135 million, up 8% from the year-ago quarter. Non-performing assets declined 14.4% year over year to $1.33 billion. The ratio of non-accrual loans to total loans was 0.90%, which declined year over year from 1.11%. M&T Bank's estimated Common Equity Tier 1 ratio was 10.16%, down from 10.99% as of third-quarter 2025. The tangible equity per share was $115.88, up from $115.31 in the third quarter of 2025. The company's return on average tangible assets (annualized) and average tangible common shareholder equity were 1.47% and 17.29%, respectively, compared with 1.56% and 17.13% in the prior-year quarter. MTB repurchased 1.3 million shares of its common stock for $323 million in the third quarter of 2026. For the fourth quarter of 2026, M&T Bank expects taxable-equivalent NII of $1.83-$1.85 billion, with the net interest margin projected in the mid-3.60% range. The outlook reflects one additional rate increase in the fourth quarter. Fee income is projected to be between $710 million and $730 million. GAAP expenses, including intangible amortization, are anticipated to be between $1.39 billion and $1.41 billion. Net charge-offs are projected to be between 35 and 40 basis points of average loans, while the tax rate (taxable-equivalent) is expected to be approximately 24%. Average loans, including loans held for sale, are expected to be between $145 billion and $146 billion, supported by growth in commercial and industrial, commercial real estate and consumer loans. Average deposits are anticipated to be between $169 billion and $170 billion. The CET1 capital ratio is expected to be 10-10.25%. Growth in NII, average loans and deposits is supporting M&T Bank's performance. Lower year-over-year net charge-offs, improving asset quality metrics and higher return on average tangible common equity are encouraging. However, higher expenses, lower non-interest income and an increase in the efficiency ratio remain concerns. M&T Bank Corporation price-consensus-eps-surprise-chart | M&T Bank Corporation Quote Currently, 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. Earnings Release Dates of Other Banks Fifth Third Bancorp FITB is scheduled to release third-quarter 2026 earnings on Oct. 19. The Zacks Consensus Estimate for FITB's quarterly earnings has been unchanged at $1.09 per share over the past seven days. This indicates a 17.2% rise from the prior-year reported number. BOK Financial Corporation BOKF is also slated to report third-quarter 2026 results on Oct. 19. Over the past seven days, the Zacks Consensus Estimate for BOKF's quarterly earnings has been unchanged at $2.54 per share. This implies a 14.4% rise from the prior-year reported number. 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 M&T Bank Corporation (MTB) : Free Stock Analysis Report Fifth Third Bancorp (FITB) : Free Stock Analysis Report BOK Financial Corporation (BOKF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, Oct. 16, 2026 - Senior Vice President of Investor Relations - Steve Wendelboe - Senior Executive Vice President and Chief Financial Officer - Daryl Bible Operator: Welcome to the M&T Bank third quarter 2026 earnings conference call. All lines have been placed on listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star, then the number one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressing star two. When posing your question, we ask that you please pick up your handset to allow for optimal sound quality. Lastly, if you should require operator assistance, please press star zero. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Steve Wendelboe, Senior Vice President of Investor Relations. Please go ahead. Steve Wendelboe: Thank you, Angela, and good morning. I'd like to thank everyone for participating in M&T's third quarter 2026 earnings conference call. If you have not read the earnings release we issued this morning, you may access it, along with the financial tables and schedules, by going to our investor relations website at ir.mtb.com. Also, before we start, I'd like to mention that today's presentation may contain forward-looking information. Cautionary statements about this information are included in today's earnings release materials and in the investor presentation, as well as our SEC filings and other investor materials. The presentation also includes non-GAAP financial measures as identified in the earnings release and investor presentation. The appropriate reconciliations to GAAP are included in the appendix. Joining me on the call this morning is M&T's Senior Executive Vice President and CFO, Daryl Bible. Now I'd like to turn the call over to Daryl. Daryl Bible: Thank you, Steve, and good morning, everyone. Before discussing our results, I'd like to begin with what continues to define M&T, our purpose, to make a difference in people's lives. That purpose informs how we serve customers, invest in our company, and create long-term value. At a recent conference, we discussed our focus on teaming for growth and operational excellence. Those priorities continue to guide our work across M&T. We are investing in technology, simplifying processes, and creating more capacity for our teams to serve customers and support growth. These efforts build on what has always differentiated M&T, strong relationships and disciplined execution. You can see that approach across our company. During the quarter, more than 100 M&T colleagues participated in the Pan-Mass Challenge. Overall, we raised more than $850,000 for cancer research and treatment. We also continued investing in our branch network, opening new locations in Torrington and Waterbury, Connecticut, to serve our customers. For the 18th consecutive year, we ranked among the nation's top SBA lenders. We were again number one across our footprint and improved to number five nationally for SBA 7(a) loans by volume for SBA's 2026 fiscal year. Together, these efforts reflect the connections we build with customers, communities, and institutions across our footprint. Slides 20 and 21 provide additional context on M&T's approach to AI. We are seeing AI help automate, augment, and reinvent work across the bank. In the near term, AI is helping employees make better decisions, reduce manual work, find information faster, and identify risks earlier. Growing engagements across the organization, including hundreds of tracked use cases, shows strong interest in moving quickly from ideas to execution. These efforts are improving productivity, risk management, and customer experience while enabling greater scalability. Turning to slide five, we were pleased to see continued recognition of our people during the quarter. American Banker, Fast Company, and InvestmentNews recognized M&T's leaders for their contributions to our bank, customers, and industry. These honors reflect the strength of our talent and culture. Now let's turn to slide 8 and our third quarter results. Diluted GAAP earnings per share were $5.04 compared to $5.32 in the prior quarter. Net income was $775 million compared to $818 million in the linked quarter. M&T's third quarter results produced an ROA and ROCE of 1.4% and 11.44% respectively. Our results continue to reflect a disciplined approach to generating attractive returns, delivering consistent balance sheet and earnings growth, and continuing to generate and preserve capital. Loan growth remains solid and deposit growth more than funded the increase, allowing us to reduce our reliance on short-term borrowings while maintaining strong net interest margin. We also continue to grow earnings per share with year-to-date net operating earnings per share increasing 17% from the same period in 2025. We delivered net earnings growth while maintaining a return discipline. Third quarter net operating ROTA and ROTCE were 1.47% and 17.29%, both exceeding the targets established for our long-term incentive structure. Our focus on capital generation and preservation is also reflected in our decision to transfer $8.3 billion of residential mortgage-backed securities from available for sale to held to maturity. That action reflects our continued discipline to protecting tangible capital and positioning us well with potential regulatory framework that includes AFS related AOCI and regulatory capital. Turning to slide nine, we provide a supplemental reporting of our results on a net operating or tangible basis. Net operating income totaled $780 million compared to $823 million in the linked quarter, while diluted net operating earnings per share were $5.08 compared to $5.35. Next, we look a little deeper into the underlying trends that drove the third quarter results. Please turn to slide 10. Taxable equivalent net interest income was $1.8 billion, largely unchanged from the linked quarter, as the benefits from one additional day earning asset growth and fixed asset repricing were muted by lower non-accrual interest and higher funding costs. In line with the outlook we provided in July and September, net interest margin was 3.65%, down 5 basis points from the prior quarter, mostly reflecting those same factors that impacted NII. As I mentioned last quarter, we remain disciplined in evaluating the trade-offs between NII and net interest margin with a focus on optimizing overall returns. Turn to slide 12 to talk about average loans. Average loans held for investment increased $2.6 billion or 2% to $143.3 billion. This quarter's growth was driven by commercial real estate and consumer. C&I loans were largely unchanged at $65.9 billion, with growth in institutional CRE offset by lower dealer commercial services. Average CRE loans increased $1.6 billion or 7% to $24.9 billion, reflecting continuation of the origination strength we saw late in the second quarter and relatively stable payoffs and pay downs. Average residential mortgage loans increased $0.4 billion or 1% to $25.2 billion. Consumer loans increased $0.6 billion or 2% to $27.3 billion with growth in recreational finance and HELOC portfolios. Loan yields decreased three basis points to 5.86%, reflecting lower non-accrual related interest. For context, third quarter results reflect a $15 million reduction in interest income recognized on commercial loans that were previously in non-accrual status. Turning to slide 13. Our liquidity remains strong. At the end of the third quarter, investment securities and cash out with the Fed totaled $52.2 billion, representing 24% of total assets. Average investment securities decreased modestly to $38.6 billion. The yield on investment securities increased four basis points to 4.33%, as reinvestment rates continue to exceed the yields on maturing balances. In the third quarter, we purchased $0.9 billion in debt securities with a yield of 5.12%. The investment portfolio had a duration of 4.1 years, and the unrealized pre-tax loss on the available for sale portfolio was $745 million. While not subject to LCR requirements, M&T estimates its LCR at quarter end was 107%, exceeding the regulatory minimum standards that would be applicable if M&T was a Category III bank. Turning to slide 14. Average total deposits rose $3.3 billion-$166.8 billion. Non-interest bearing deposits decreased $256 million-$43.7 billion, primarily from lower trust demand deposits. Interest bearing deposits increased $3.5 billion-$123.1 billion. Growth was driven by commercial mortgage, business banking and time deposits. Interest bearing deposit costs increased 10 basis points to 2.05%. The increase was driven by several factors, including two basis points related to the impact of the September rate hike and four basis points related to the growth and repricing of the time portfolio. The remainder largely attributed to growth in other interest-bearing deposit categories. Importantly, the deposit growth allowed us to reduce our reliance on borrowings, with average short-term borrowing decreasing by $2.8 billion-$5.2 billion. As a result, total interest-bearing liability cost increased less than the interest-bearing deposit cost, reflecting our continued focus on optimizing overall funding costs and mix. Continuing on slide 15. Non-interest income was $743 million compared to $740 million in the linked quarter. Higher residential servicing fee income was largely offset by lower capital markets and advisory and other revenues from operation. Mortgage banking revenues increased $25 million-$152 million. The primary driver was residential mortgage, which increased $23 million-$119 million from higher servicing fee income, reflecting $63 billion of sub-servicing balances added in June. Trust and investment services decreased $5 million-$230 million, mostly related to seasonal tax preparation fees in the second quarter. Capital markets and advisory decreased $9 million-$32 million from lower interest rate swap transactions with commercial customers and lower loan syndication activity. Other revenues from operations decreased $10 million, mostly reflecting a $31 million Bayview distribution compared to $47 million in the prior quarter. Turning to slide 16. Non-interest expenses for the quarter were $1.39 billion, an increase of $44 million from the prior quarter. Salary and benefits increased $6 million to $832 million, mainly from one additional working day in the quarter. Outside data processing and software costs increased $19 million and professional services increased $8 million, reflecting higher software maintenance, enhancements to our technology infrastructure, and other enterprise initiatives. Other costs from operations increased $6 million, primarily from the Visa-related litigation obligations. Our efficiency ratio was 54.4% in the third quarter, up from 52.8% in the linked quarter. Year to date, however, efficiency continues to improve, with the ratio improving to 55.1% from 56.3% last year. Next, let's turn to slide 17 and 18 for credit. Asset quality remained relatively stable this quarter, with net charge-offs below our initial year expectations and non-accrual loans remaining near cyclical lows. Criticized loans increased $245 million-$6.1 billion. The increase was driven by a $213 million increase in C&I criticized and a $32 million increase in CRE. Non-accrual loans increased $90 million-$1.3 billion, and the non-accrual ratio increased five basis points to 90 basis points. The increase was driven by higher commercial non-accrual loans, mostly related to office and assisted living credits. Net charge-offs for the quarter totaled $127 million, or 35 basis points. Five credits accounted for approximately $40 million in the net charge-offs and were mostly in the leveraged lending and franchise portfolios. In the third quarter, we recorded a provision for credit losses of $135 million. The allowance for loan losses as a percent of total loans declined two basis points to 1.51%. Turning to slide 19 for capital. M&T's estimated CET1 ratio was 10.16%, a decline of three basis points from the second quarter. The decline reflected $323 million share repurchases and higher risk-weighted assets associated with $2.2 billion of loan growth. These factors were partially offset by continued strong capital generation. If included in regulatory capital, AFS and pension-related AOCI would have decreased CET1 ratio by 29 basis points. Now turning to slide 22 for the outlook. First, let's begin with the economic backdrop. The U.S. economy continues to expand despite multiple shocks and heightened uncertainty. Although geopolitical conflicts have not been fully resolved, we are cautiously optimistic with an outlook of continued growth. Gasoline prices remain high, but consumer spending has held up well in spite of energy shocks. We see households as having managed the shock by reducing spending in other areas. The build-out of artificial intelligence infrastructure is helping drive overall construction and CapEx while other sectors are more subdued. While we do not see evidence of energy shocks seeping into core inflation, we expect overall inflation to decelerate going forward. Labor market remains in a low hire, low fire environment with slow job growth and low unemployment rate with very little wage pressure. We remain well positioned for a dynamic economic environment. Now turning to the outlook. With three quarters of the year complete, we are focused on the fourth quarter. We expect taxable equivalent NII to be $1.83 billion-$1.85 billion and interest margin to be in the mid-3.60s. Our forecast reflects one rate hike in December. We expect modest loan growth with average loans of $145 billion-$146 billion in growth in C&I, CRE, and consumer. Average deposits are expected to increase to $169 billion-$170 billion with continued focus on growing customer deposits at a reasonable cost. Our outlook for the fourth quarter non-interest income is $710 million-$730 million, reflecting stable to modest growth across most fee income categories, except for other revenues from operations, given the benefit of Bayview distribution in the third quarter. Fourth quarter expenses, including intangible amortization, are expected to be $1.39 billion-$1.41 billion, reflecting continued investment in the enterprise initiatives and well-managed non-investment spend. Net charge-offs for the fourth quarter are expected to be 35-40 basis points. We plan to continue to operate a CET1 ratio of 10%-10.25% for the remainder of the year. To conclude on slide 23, our results underscore an optimistic investment thesis. M&T has always been a purpose-driven organization with a successful business model that benefits all stakeholders, including shareholders. We have a long track record of credit outperforming through all economic cycles while growing within the markets we serve. We remain focused on shareholder returns and consistent dividend growth. Finally, we are a disciplined acquirer and prudent steward of shareholder capital. The strength and diversification of M&T's balance sheet, asset quality, and revenue will continue to allow M&T to outperform consistently across cycles. As we close, I want to thank all of my M&T colleagues whose dedication and hard work make a difference every day for our customers, communities, and one another. Because of your commitment, M&T continues to create lasting value for everyone we serve. Now let's open the call up to questions, before which Angela will briefly review the instructions. Operator: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two. Once again, that is star one to ask a question. Our first question today comes from Daniel Tamayo with Raymond James. Your line is now open. Daniel Tamayo: Thank you. Good morning, Daryl. Daryl Bible: Good morning, Daniel. Daniel Tamayo: Maybe just starting on the funding side. You mentioned the mix shift from borrowings to deposits in the quarter, and the benefit that had. Is there any benefit left from this mix shift? Just diving into the increase in deposit costs, just curious if that was more related to competition or how much of that was impacted by the rate hike in September. Thanks. Daryl Bible: Yeah, thanks, Daniel. Let me start with the deposit one first. Our deposit costs were up 10 basis points quarter-over-quarter. When you kind of decompose that, four basis points of that increase was really attributable to time deposits that we put on towards the end of the second quarter and early third quarter. We had a promotion that we were running. We were doing 12 and 18 months maturities. At that time, we put on a 4.05% rate on those CDs. Not knowing that rates were going to go up a whole lot, we just thought it was a good time to issue, get more term funding, and pay down borrowings. With the rate increase that we saw late in the third quarter, we're now close to the overnight rate with this term money. We think now that's acting really well, and that will stay stable. If you take that away, our costs were really up around six basis points, and that's just normal repricing that we saw that we had to as we start to implement increases with the higher funds rate from that perspective. On the funding side, we are always looking on the balance sheet for ways to be optimized and do things better. I'm sure we aren't fully optimized yet, and we'll continue to work on trying to become more optimal. I feel very optimistic on the outlook for net interest income and net interest margin. I think we'll find other things that we can do down the road over the next year or so that will help us continue to maintain and have really strong performance in this space. Daniel Tamayo: Great. Thank you. Then maybe just a longer-term question, kind of similar topic, though. Given your focus on growing the operating accounts but the pressure that we're seeing in the industry on funding on the deposit side, how are you thinking about the trade-off between maintaining deposit pricing discipline and funding loan growth going forward? Just your thoughts on if the deposit pricing could ultimately become a bigger constraint on growth than maybe demand for loans going forward. Daryl Bible: Yeah. So as you know, Danny, all of our businesses, whether it's consumer, business banking, commercial, wealth, we always go to market to get the operating account. That, we believe, is the most important thing to have a relationship. The relationship starts with that. Once we get that, we have other opportunities to kind of deepen our relationship with our customers. That's not going to change. That's really good. If you look at business banking, I've said this before, but it has more deposits than loans, three to one. 80% of those deposits are operating accounts. So that's just a pure way you can see of how focused we really are in getting on those operating accounts. As far as pricing goes, yes, it's competitive out in the marketplace, and there is loan demand. We'll see how much loan demand we have in 2027 with rates increasing. My guess is we'll have loan demand, but probably at a little bit more modest pace. I think we'll be able to manage the funding of that effectively. If we go out to term funding, M&T issues very well in the capital market. So we can do that if we need to. But first and foremost, we're going to try to fund our loan growth with our deposit growth. Daniel Tamayo: Terrific. Thanks so much for taking my questions, Daryl. Daryl Bible: Thank you. Operator: Thank you. We'll go next to Scott Siefers with TD Cowen. Your line is now open. Bill Young: Hey, good morning, guys. This is actually Bill Young on for Scott. How are you? Daryl Bible: Hey, Bill. Bill Young: Hi. My first question. You had some very strong pull-through on CRE this quarter, which was expected, and it looks like the outlook for Q4 growth is also looking very solid. What are your updated thoughts on the positive commercial growth inflection story balanced against the rate outlook as we look out over the next year and given the evolving higher rate environment? Daryl Bible: Yeah, that's a great question, Bill. I spent a lot of time talking to Tim Gallagher this week preparing for this call. He runs our CRE space, and him and his team have worked really hard to start growing our CRE portfolio again. We have two quarters in a row now where it's grown really nicely. Higher rates, just by definition, is going to make it more challenging for projects to actually basically pencil out from a financial perspective. We're still optimistic. I think Tim and his team have worked hard to get growing, and even in a more challenging environment, we still feel confident we're going to be able to grow. Probably maybe mid-single digit, plus or minus, in that neighborhood is kind of our expectations. We were really good at CRE, and to be honest with you, it's always not all on what's on the balance sheet. We also have a lot of off-balance sheet alternatives, too, and we really want to serve our customers and meet their needs, whether that's on or off balance sheet. I think both ways we will be successful in what we need to do. Bill Young: Great. Very helpful. Then a separate topic. Given the slight uptick in criticized assets this quarter and some of the uncertainties you flagged on the macro in your prepared remarks, do you see criticized assets levels perhaps stabilizing at these levels? How do you kind of think about that as well in the backdrop of a higher rate environment? Daryl Bible: Yeah. When you look at our at least near-term projections for criticized balances, we still think the overall portfolio will still be down a little bit. If you look at CRE, that is where most of the improvement has been over the last year. That is probably where you are going to continue to see it near term. As you go out into next year and if rates stay higher, that could put pressure on debt service coverage ratios, and that could have some creep maybe starting back into the portfolio there. The C&I portfolio has been up and down a little bit on a criticized basis. We do not think that is going to necessarily have a downward trajectory, but kind of bounce along up and down a little bit throughout the next several quarters. But net, overall, I think we are optimistic that it is still at least short term down in criticized, and we will see how much rates impact our customers going forward. As you know, as we underwrite our customers, we stress test them under a lot higher interest rates, and they will perform well because of that stress testing and renewal. So we are concerned about losses coming in with this higher interest rates, but you might see a little creep in the criticized side. Bill Young: Perfect. Thank you for taking my questions. Appreciate it. Daryl Bible: Thank you. Operator: Thank you. We'll go next to John Pancari with Evercore. Your line is now open. Girard Sweeney: Hey, good morning. This is Girard Sweeney on for John. Just revisiting the criticized loans on the auto leasing credit, the auto leasing company credit that you flagged. Can you provide a little more color on this in terms of was this something you had some prior visibility into, and if you think this is driven by broader macro or industry pressures? Or for this credit, was a little more idiosyncratic? Thank you. Daryl Bible: Yeah. We believe it was idiosyncratic. It was in our NDFI portfolio. This company was an auto leasing vehicle remarketing and used car platform. We knew this was coming down the path. We also have a feel for non-accrual next quarter as well, and we think that's going to be flat to up a little bit as well. We're just bouncing at the bottom right now, and there's a couple credits that we see out there that we think will go into non-accrual. But as loans go in non-accrual, we do have some curing as well. Net, we were up a little bit this quarter. But we're still having a lot of our customers also cure in this portfolio. But we're at really low periods for M&T, very close to the bottom. We're going to bounce along the bottom for a while, I believe. Girard Sweeney: Thank you. One more just on back on the lending side, revisiting pricing there. Given broader competitiveness, what have you observed in loan spreads in 3Q, and have you seen any changes in recent weeks as credit spreads across the industry have widened? Daryl Bible: Yeah. When you look at the commercial portfolio, includes CRE or whatever, we're actually up 10 basis points from what we had run off versus what we ran up, put on the books this past quarter. I wouldn't say that you can say that's going to stay that way, but I would say we're relatively flat. Right now we're showing a little bit positive bias from that perspective. I think that's good. It's competitive out there, but we're willing to give a little bit on pricing if we have really good structure. We don't want to sacrifice on structure is really what's important to us, and that's something that we aren't going to change from that perspective. Right now, we think what we're putting on the books is still meeting our returns in pretty much most of the situations that we are able to do. Girard Sweeney: Understood. Thank you very much. Daryl Bible: Thank you. Operator: Thank you. Our next question comes from Ryan Kenny with Morgan Stanley. Your line is now open. Ryan Kenny: Hey, good morning. On the fee income side, it's been a strength for M&T for several quarters. Can you walk through what you expect to see in terms of higher rates impact on the fee businesses and maybe how that trajectory would vary across the major line items? Daryl Bible: Yeah. The easy ones are higher interest rates on the yield curve is definitely going to slow down our residential mortgage business, and you're seeing that now, obviously, with new home rates above 7.5%-8% in that range bouncing along right now. Our RCC business, which is our originate and sell business in the commercial real estate space is also higher and has lower volumes just because it's hard to pencil out and get the economics that we need for our customers in that space. Those would be softer. One of the countercyclical items we have is our mortgage servicing, sub-servicing businesses. What we have there is most of our sub-servicing businesses are in government servicing FHA. When loans are delinquent and then when we're able to cure loans, we actually get paid a reward fee for that. If that actually not wishing our customers to have issues, but if they do have issues, we generate more revenue, and when we're able to cure them, we get paid for that even more from that. That's more countercyclical. Doing our corporate trust. Corporate trust business is a great fee business, but it's also a good deposit business for us. If market activity slows down in the capital markets areas, we'll see that space there. We now broke out our line items on capital markets and commercial. That's going to probably do well in most situations just because we're putting more resources and more people in that space. We're coming off pretty much very low bottoms. We're very optimistic as we push more into that space and offer it more to our customers. Even in tougher environments, I think we'll be able to hold our own and still have success growing in that area. Net overall, we're very optimistic on fees. It's about 28% of our revenue. We're going to continue to push hard, and we still have strong net interest income and margin, but try to get the fee revenue up into the 30s would be a great objective for us to achieve. Ryan Kenny: Thank you. Very clear and appreciate the enhanced disclosure around fees. Separately on the M&A question, any updated thoughts on the board's appetite for potentially expanding inorganically given the movement in rates? Does higher rates limit the pool of available sellers because of unrealized losses, or does it make high-quality deposit franchises more attractive? If you just walk through the puts and takes there. Thanks. Daryl Bible: Yeah. Higher rates definitely changes the mark of the balance sheet, and that's real. What we look at, to be honest with you, deposit franchise is one of the most important things we look at, no matter what the conditions are, because it's hard to really have a bank that funds with operating transaction accounts and have that mindset. When you find those, you really get a lot of value there. So we're still actively talking to a lot of people in our footprint, and something may happen at some point down the road. There's nothing imminent from that perspective, but Rene knows all the CEOs in our marketplace plus, and he has good dialogue. When somebody wants to maybe want to partner with us, they'll reach out to us, and at that point, we'll engage and see if it can work for both parties from that perspective. Ryan Kenny: Thank you. Daryl Bible: Yep. Operator: Thank you. Our next question comes from David Chiaverini with Jefferies. Your line is now open. David Chiaverini: Hi. Thanks for taking the questions. Wanted to follow up on the loan side of things. CRE consumer drove the growth, but C&I was muted. Can you talk through why C&I was muted in the outlook from here on the C&I side? Daryl Bible: Yeah. C&I is a big business for us. We have lots of businesses within C&I. I'll just cut to the chase. It was flat this quarter. We had actually nice growth in our institutional CRE kind of REIT lending. We had good growth in our large corporate institutional. We actually had good growth in three of our four major regions in our regional C&I space. What offset us was seasonally dealer commercial services is at a point now where there's less inventory cars on the platform, so that went down. And then if you look at owner-occupied, that was the other one that kind of decreased. So net, it added to pretty flat. Our outlook, though, for C&I is very optimistic and good. For next quarter, in my prepared remarks, we said we'd have growth in commercial CRE as well as consumer, so all three portfolios, and we believe that's going to happen and maybe a little bit more challenging with higher rates next year and all that. But our teams are really good. We have great relationships with our customers. So we will hold our own, and I'm sure we'll have good loan growth and still continue to perform really well as we get into 2027 and beyond. David Chiaverini: Great. Thanks for that. On the net interest margin, you're guiding mid-3.60s for the fourth quarter. Should we think of that as a sustainable level for multiple quarters? Can you also remind us of the sensitivity to rates on the NIM for M&T going forward? Daryl Bible: Yeah. Okay. Let me do sensitivity first. Sensitivity on the short end, we're relatively neutral, maybe a touch liability sensitive, but pretty relatively neutral in that space. The curve is steeper, and that's a good guy for us. I feel very comfortable where we're operating in the mid-3.60s. We aren't going to give 2027 guidance. But when you look at where the shape of the curve is, if that holds, if you look at where our asset repricing is, we have really good asset repricing in a lot of our portfolios. Our investment portfolio, for a given next 12 months, will reprice $6 billion up easily over 100 basis points. If you look at loans, over the next 12 months, we have about $10 billion of fixed rate loans going off. That should reprice up for about 75 basis points. If you look at our swap book, it's come down in the last quarter or two. It starts to go back up again in the second quarter next year and climbs out of that. I feel good on our swap book giving us momentum as you get into the middle and later part of 2027. I'm actually pretty optimistic, David, that we're going to continue to have a strong net interest margin for our company and have good loan growth and see how that plays out. But we're really performing really well, all the businesses, and I think you're going to see that performance continue. David Chiaverini: Very helpful. Thank you. Daryl Bible: Yep. Operator: Thank you. Our next question comes from Christopher McGratty with KBW. Your line is now open. Chris O'Connell: Hi, thanks. This is Chris O'Connell on for Christopher McGratty. I was just hoping to touch on some of the pricing dynamics on the loan and the security side. Maybe just post hike where the average pipeline origination yields are coming on for the C&I and CRE books. Daryl Bible: Yeah. I mentioned it earlier, but on the commercial side, when you look at the roll-on, roll-off, we're up about 10 basis points in the third quarter in that space. That kind of bounces around. I don't know what it will be next quarter, but net overall, it's competitive in that space. We're really not giving on our structure, and we're getting the pricing. I would say the vast majority of the loans we put on our books are meeting our hurdles. That's what's really important from that perspective. As far as the pricing securities, I mentioned that just a minute ago, but we have good momentum. We're going to be able to reprice that portfolio up. It went up four basis points this quarter. I would say that will continue to be up for the next several quarters, each quarter. Chris O'Connell: Okay, great. Thank you. On the capital side, you guys are pretty close to your capital targets now and expected to stay in that range for Q4. As you move into Q4 into next year and given the Basel III proposals, any change do you think in the level of buybacks going forward? Daryl Bible: We first want to get the rules out there and know what they are. We'll look at what actually is out there. There's three regulations that will probably be out by the end of the year, Basel III, tailoring, and liquidity. I think all of them will have some positives, maybe not as much as what everybody wants, but still positives in each of them to some extent. I think we'll just have to evaluate what the new rules are, what we have. But I think where we are now, we feel really good at that. With the increase in AOCI, we are being very careful with our tangible equity and all that. That's why we moved those $8.3 billion out to maturity. The other caveat out there in the marketplace is rating agencies. Rating agencies, we don't want to get downgraded, so we have to see how they interpret the new rules as well. But net overall, we're optimistic that we'll have some flexibility there and continue to do really well. Chris O'Connell: Great. Appreciate the detail. Thanks for taking my questions. Daryl Bible: Yeah. Operator: Thank you. Our next question comes from Matt O'Connor with Deutsche Bank. Your line is now open. Nate Stein: Hey, this is Nate Stein on behalf of Matt O'Connor. I actually wanted to ask about the decision to break out new fee line items like capital markets and advisory and card fees. What drove the decision to start breaking all that out versus lumping a lot of other items into other income previously? Separately, I noticed a reclassification of C&I, CRE, and resi mortgage loans, and I didn't see any footnotes highlighting it in case I missed it. Could you just elaborate more on this? Daryl Bible: Yeah. Let me take your second question first. We didn't change any classification of our loans with the exception of we broke out available for sale, held for sale out of there. That was really for our two portfolios in residential mortgage and in our RCC CRE business. Those will actually show that there. Other than that, the balance sheet didn't change. That's the only thing we had, and we're averaging a little less than $1 billion in that new held for sale line item. As far as the fees go, we had a very large other revenue category. It was either the largest or second largest out there. We just had a lot of, we believe, good news within that other category. So we wanted to break it out and show more transparency there. We created those new buckets, like in capital markets and card fees and other things, and just bucketed things how we thought it would be and consistent. It was that way for a long, long time. We would have changed it earlier, but we were putting in the general ledger, and we just didn't want to change our line items and have to redo kind of our new system all over again. So we waited till the new system was in and working, and then we broke it out. You may see a little bit more changes positively over the next quarter or two as well, just trying to enhance and improve our transparency and information that we share with you guys. Nate Stein: Well, I'll just reiterate another person's comments. The increased transparency is definitely appreciated, so thank you for that. Then I wanted to ask also about ROTCE. You called out a 17.3% operating ROTCE in 3Q, which is a little above the high end of your 15%-17% medium-term range. In the past, you've said 17% next year is achievable. Is that still a fair assumption, or is there maybe upside to this target? Daryl Bible: Yeah, Nate, we believe we're on track with what we shared with the board. We believe that 17% is attainable for 2027 for us. It will be challenging. It won't be easy, especially with higher rates. Might have a little bit softer economy because of that. That said, though, our businesses are performing well. All of our people know our clients, customers really well. We will compete, I think, really well against others in the marketplace. I think we're all focused, and I think we're going to achieve our goals that we're setting out. But a year from now, you kind of know if we're there or not. But I think that's the objective, and that's what we're going to try to execute to. Nate Stein: Thank you. Operator: Thank you. Our next question comes from Gerard Cassidy with RBC Capital. Your line is now open. Gerard Cassidy: Hi, Daryl. How are you? Daryl Bible: I'm doing good. And you, Gerard? Gerard Cassidy: Good. I got a bigger picture question for you. There has been a lot of talk lately about the agentic AI agents coming in and maybe moving deposits around on the consumer deposit accounts, thereby pressuring deposit rates for banks like yours and others. What is your guys' take on this news and other types of AI agents? Daryl Bible: You have been in the industry a long time. Information has gotten a lot better over the last 30 years. People can move money to higher rates. You get information out there very easily. These agents will make it easier out there. I think it is going to come down to trust, to be honest with you, where our customers really trust to let their agents allow them to have all their credentials come in and have the ability to move money to other places and have that agent decide where that money is going to move and understand that really well. If you look at our center that we have now, agents are coming in every day. We have tons of that coming in. But we are not really seeing much impact of actually money being moved out or anything yet. But it is happening today. And we are monitoring that very closely. But net-net, I think it is going to take time for people to get comfortable with that and having access to move money around. But it will probably become more efficient over time. But right now, I just think it is going to be not as much of a big deal. And over time, as people get comfortable and actually trust these agents with all their money and move it to other places, then it is purely mobile at that point down the road. Gerard Cassidy: Sure. Okay. Thank you. And then you guys have had good insights into the private credit market. What are the trends that you are seeing? Obviously, in the beginning of the year, there were some real concerns about credit quality in that market. Are you seeing increased competition from the spread, or what are you folks seeing? Daryl Bible: Yeah, I'd say private credit including BDCs and that, it's just a little bit softer. They've had, I wouldn't say issues, but they've had to address some of their liability side of their balance sheets. So the funding that they have now probably isn't as robust as what it had a few years ago from that perspective. We actually like to partner with those if it makes sense for us, and maybe support them and help them doing what they're doing, or split a customer up or take a senior position, or they take a more subordinated position. I think net-net overall, it's not having a negative impact for us. If anything, it's neutral to slightly positive for us. Gerard Cassidy: Got it. Thank you. Appreciate the color. Daryl Bible: Yep. Operator: Our next question comes from Ken Houston with Autonomous Research. Your line is now open. Mokshith Reddy: Hi, good morning, Daryl. This is Mokshita for Ken. Could you just talk through the trade-off between AEA growth and NIM? I think you briefly touched on it in your comments, but just going into the higher or longer rate environment, how do you guys think about just the trade-off between the two? Daryl Bible: Yeah. I would say if you're purely minded to get the maximum interest margin, you probably won't optimize your return performance and your revenue growth. To be honest with you probably aren't solving all of your customers' needs in the marketplaces. There's a balance there that our goal is to support customers and communities first and foremost. We need to have the ability to have balance there. We look at can they hurdle and can they get the right returns? Is really what we're looking for. Can they get a 17% return on tangible relationship in that? If that requires a lower spread, so be it. Maybe we make it up in fee income or balances as well. Net-net overall, it's more about getting the right returns is really what we're focused on. That sometimes could be margin, sometimes it's getting more NII. Right now we're leaning into trying to be as open as we can with customers and try to bring in more of the relationship that way, and seems to be working right now. I think we'll continue to exercise it and do that. Mokshith Reddy: Okay, got it. Just one on fees. You guys had this nice sub-servicing add this quarter, but how are you guys thinking about the opportunity to continue scaling originations and sub-servicing capabilities over the medium term? Daryl Bible: Our sub-servicing business and mortgage is really important to us. We have good systems. We have good people that are trained in there who perform really well in that space. We actually like the hard to service type of business there just because we think we're really good at it. That's something that we're in and going to continue to stay in that space. As we have opportunities to grow it some more and compete competitively, we will. That requires continuation of investment in technology. I mean, we're prepared to do whatever we need to in that space. It's a good important fee income line item. It's counter-cyclical for us, which is also really good from a diversification perspective. George Taylor, who runs that function for us, is doing a great job with that, and we will continue to grow and do well and take advantage of opportunities when they come our way. Mokshith Reddy: Great. Thanks for your answers. Daryl Bible: Yep. Operator: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Steve Wendelboe for closing remarks. Steve Wendelboe: Thank you all for participating today. As always, if any clarification is needed, please contact our investor relations department at 716-842-5138. Thank you. Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. M&T Bank (MTB) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: October 16, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Loan growth remained solid with average loans held for investment increasing 2% to $143.3 billion, driven by commercial real estate and consumer loans. - Deposit growth more than funded loan growth, reducing reliance on short-term borrowings and supporting a strong net interest margin. - Net operating ROTCE of 17.29% exceeded the target range, and year-to-date net operating EPS increased 17% from the same period in 2025. - Asset quality remained relatively stable with net charge-offs below initial expectations and nonaccrual loans near cyclical lows. - The company continues to invest in technology and AI to improve productivity, risk management, and customer experience, and maintains a strong capital position with a CET1 ratio of 10.16%. - Net interest margin declined 5 basis points to 3.65% due to lower nonaccrual interest and higher funding costs. - Noninterest expenses increased $44 million from the prior quarter, driven by higher salary and benefits, outside data processing, and professional services costs. - Criticized loans increased $245 million to $6.1 billion, with increases in C&I and CRE criticized loans. - Nonaccrual loans increased $90 million to $1.3 billion, driven by higher commercial nonaccrual loans, mostly in office and assisted living credits. - The efficiency ratio worsened to 54.4% from 52.8% in the linked quarter, reflecting higher expenses. - Warning! GuruFocus has detected 5 Warning Signs with MTB. - Is MTB fairly valued? Test your thesis with our free DCF calculator. Q: On the funding side, you mentioned the mix shift from borrowings to deposits. Is there any benefit left from this mix shift, and what drove the increase in deposit costs?A: CFO Daryl Bible explained that deposit costs rose 10 basis points quarter-over-quarter, with 4 basis points attributable to time deposits from a promotion offering 12- and 18-month maturities at a 4.05% rate. The remaining 6 basis points came from normal repricing. He noted the bank is not fully optimized on funding and remains optimistic about finding further efficiencies to support net interest income and margin. Q: Given the focus on growing operating accounts and industry pressure on deposit funding, how do you think about the trade-off between deposit pricing discipline and funding loan growth?A: CFO Daryl Bible emphasized that M&T always prioritizes securing the operating account across all businesses, as it is the foundation of customer relationships. He noted that business banking has a 3:1 deposit-to-loan ratio, with most deposits being operating accounts. While pricing is competitive and loan demand may be more modest in 2027 with higher rates, he believes M&T can manage funding effectively, first through deposit growth and, if needed, through capital markets term funding. Q: You had strong CRE pull-through this quarter, and 4Q growth looks solid. Given the evolving higher rate environment, what are your updated thoughts on commercial growth inflection versus the rate outlook?A: CFO Daryl Bible said the CRE team has worked hard to restart growth, with two consecutive quarters of nice expansion. Higher rates make project economics more challenging, but he remains confident in mid-single-digit growth. He also highlighted that M&T can serve customers both on and off the balance sheet, which supports continued success. Q: Given the slight uptick in criticized assets and macro uncertainties, do you see criticized asset levels stabilizing, especially with higher rates?A: CFO Daryl Bible expects criticized balances to decline slightly near-term, driven by CRE improvement. However, if rates stay higher, debt service coverage ratios could face pressure, potentially causing some creep in the portfolio next year. The C&I portfolio may bounce up and down but is not expected to have a downward trajectory. He noted that M&T stress-tests customers under higher rates, so losses are not a major concern, though some increase in criticized levels is possible. Q: Can you provide more color on the criticized auto leasing credit? Was it idiosyncratic or driven by broader macro pressures?A: CFO Daryl Bible said the credit was idiosyncratic, involving an auto leasing, vehicle remarketing, and used car platform in the NDF portfolio. M&T had visibility into the issue and expects nonaccruals to be flat to up slightly next quarter. He noted the portfolio is bouncing along the bottom, with some credits entering nonaccrual but also some curing. Q: On loan pricing, given competitive pressures, what have you observed in loan spreads, and have credit spread widening changed anything recently?A: CFO Daryl Bible said commercial loan pricing is up about 10 basis points on roll-on versus roll-off this quarter, with a relatively flat to slightly positive bias. While competition exists, M&T is willing to concede on pricing if structure is strong, and most new loans still meet return hurdles. Q: On fee income, which has been a strength, how do you expect higher rates to impact fee businesses, and what is the trajectory across major line items?A: CFO Daryl Bible said higher rates will slow residential mortgage and commercial real estate originate-and-sell businesses. However, mortgage servicing and subservicing are countercyclical, generating more revenue when loans are delinquent and cured. Corporate Trust is a strong fee and deposit business but may slow with capital markets activity. Capital markets and commercial fees should perform well as M&T invests more resources. Overall, fees are about 28% of revenue, with a goal to push into the 30s. Q: On M&A, any updated thoughts on the Board's appetite for inorganic expansion given higher rates and unrealized losses?A: CFO Daryl Bible said higher rates change balance sheet marks, but deposit franchises remain a top priority. M&T is actively talking to potential partners in its footprint, though nothing is imminent. CEO Renee Jones maintains good dialogue with market CEOs, and M&T will engage when approached. Q: C&I loans were muted this quarter while CRE and consumer drove growth. Can you explain why C&I was flat and the outlook?A: CFO Daryl Bible said C&I was flat due to seasonal declines in dealer commercial services and lower owner-occupied lending, offsetting growth in institutional CRE and three of four regional C&I markets. He is optimistic about C&I growth next quarter, alongside commercial CRE and consumer, though higher rates may make 2027 more challenging. Q: You're guiding NIM to mid-360s for 4Q. Is that sustainable for multiple quarters, and what is the rate sensitivity?A: CFO Daryl Bible said M&T is relatively neutral to short-end rates and benefits from a steeper curve. He is comfortable with the mid-360s NIM. For 2027, he did not give guidance but noted strong asset repricing: $6 billion in investment securities repricing up over 100 basis points, $10 billion in fixed-rate loans repricing up about 75 basis points, and a swap book that starts climbing again in 2Q 2027. He remains optimistic about maintaining a strong NIM. Q: On capital, you're near your targets and expect to stay in range. Given Basel 3 proposals, any change in buyback plans?A: CFO Daryl Bible said M&T will wait for final rules on Basel 3, tailoring, and liquidity, expected by year-end. He expects some positives from each. The bank is being careful with tangible equity, including moving $8.3 billion of AFS securities to held-to-maturity. Rating agency interpretations are also a consideration. Overall, he is optimistic about future flexibility and continued strong performance. Q: What drove the decision to break out new fee line items like capital markets and advisory and card fees, and was there a loan reclassification?A: CFO Daryl Bible said the breakout was to provide more transparency for a large "other revenue" category. The change For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Interested in M&T Bank Corporation? Here are five stocks we like better. - Third-quarter earnings declined sequentially: GAAP net income fell to $775 million, or $5.04 per diluted share, from $818 million, while year-to-date operating EPS increased 17% year over year. - Loans and deposits continued to grow: Average loans rose 2% to $143.3 billion and deposits increased to $166.8 billion, allowing M&T to reduce short-term borrowings. The bank expects modest loan growth and deposits of $169 billion to $170 billion in the fourth quarter. - Margins and credit metrics faced pressure: Net interest margin narrowed to 3.65% as funding costs increased, while non-accrual loans and criticized loans rose. M&T projects fourth-quarter net charge-offs of 35–40 basis points and plans to maintain a CET1 ratio between 10% and 10.25%. - Banks Are Buying Back Stock Hand Over Fist, Including These 3 Names M&T Bank (NYSE:MTB) reported third-quarter 2026 net income of $775 million, or $5.04 per diluted share on a GAAP basis, compared with $818 million, or $5.32 per share, in the prior quarter. Net operating income totaled $780 million, or $5.08 per diluted share, versus $823 million, or $5.35 per share, in the linked quarter. Chief Financial Officer Daryl Bible said the bank's results reflected loan and deposit growth, stable net interest income and continued capital generation. The company reported a return on assets of 1.4% and return on common equity of 11.44%. On a net operating basis, return on tangible assets was 1.47% and return on tangible common equity was 17.29%. → Don't Get NVIDIA's Reflection AI Interest Wrong: Its Moat Could Deepen - Banking and trucking: Is the economy rolling toward troubles? Year-to-date net operating earnings per share rose 17% from the comparable 2025 period, Bible said. Average loans held for investment increased $2.6 billion, or 2%, from the second quarter to $143.3 billion. Commercial real estate lending was a major contributor, with average CRE loans rising $1.6 billion, or 7%, to $24.9 billion. Consumer loans increased $600 million, or 2%, to $27.3 billion, driven by recreational finance and home-equity line-of-credit portfolios. → Tesla Wants to Make Its Own Chips—What Could Go Wrong? - Challenges Loom for Regional Banks as Interest Rates Surge Average residential mortgage loans rose $400 million to $25.2 billion. Commercial and industrial loans were essentially unchanged at $65.9 billion, as growth in institutional CRE lending was offset by lower dealer commercial services balances. Bible said the bank expects modest fourth-quarter loan growth, with average loans projected to reach $145 billion to $146 billion. The outlook calls for growth across C&I, CRE and consumer portfolios. → Birkenstock's Strong Growth Creates a Buying Opportunity Average deposits increased $3.3 billion to $166.8 billion during the quarter. Interest-bearing deposits rose $3.5 billion to $123.1 billion, led by commercial mortgage, business banking and time deposits. Noninterest-bearing deposits declined $256 million to $43.7 billion, primarily because of lower trust demand deposits. The deposit growth allowed M&T to reduce average short-term borrowings by $2.8 billion to $5.2 billion. Bible told analysts that the bank remains focused on obtaining operating accounts and funding loan growth primarily through deposits, while retaining access to term funding if needed. Taxable-equivalent net interest income was largely unchanged from the prior quarter at $1.8 billion. Net interest margin declined 5 basis points sequentially to 3.65%, reflecting lower non-accrual interest income and higher funding costs, partly offset by earning-asset growth and fixed-asset repricing. Loan yields declined 3 basis points to 5.86%. Third-quarter results included a $15 million reduction in interest income on commercial loans that had previously been in non-accrual status. Interest-bearing deposit costs rose 10 basis points to 2.05%. Bible said four basis points of the increase came from time deposits added through a promotional offering late in the second quarter and early in the third quarter. Two basis points were tied to the September rate increase, while the remainder reflected repricing and growth in other interest-bearing deposit categories. For the fourth quarter, M&T expects taxable-equivalent net interest income of $1.83 billion to $1.85 billion and a net interest margin in the mid-3.60% range. The forecast assumes one rate increase in December. Noninterest income increased to $743 million from $740 million in the second quarter. Mortgage banking revenue rose $25 million to $152 million, driven largely by a $23 million increase in residential mortgage revenue tied to higher servicing-fee income. The bank added $63 billion of sub-servicing balances in June. Trust and investment services revenue declined $5 million to $230 million, largely due to seasonal tax-preparation fees recognized in the second quarter. Capital markets and advisory revenue fell $9 million to $32 million because of lower commercial customer interest-rate swap transactions and lower loan syndication activity. Noninterest expenses rose $44 million sequentially to $1.39 billion. The increase included higher data processing, software and professional-services costs related to software maintenance, technology infrastructure enhancements and enterprise initiatives. The efficiency ratio rose to 54.4% from 52.8% in the prior quarter, though the year-to-date ratio improved to 55.1% from 56.3% a year earlier. Asset quality remained relatively stable, according to Bible. Criticized loans increased $245 million to $6.1 billion, led by C&I balances. Non-accrual loans increased $90 million to $1.3 billion, with the non-accrual ratio rising 5 basis points to 0.90%. The increase was mostly related to commercial office and assisted-living credits. Net charge-offs totaled $127 million, or 35 basis points, and the provision for credit losses was $135 million. The allowance for loan losses declined 2 basis points to 1.51% of total loans. M&T expects fourth-quarter net charge-offs of 35 to 40 basis points. M&T's estimated common equity tier 1 ratio was 10.16% at quarter-end, down 3 basis points from the second quarter. The decline reflected $323 million of share repurchases and higher risk-weighted assets associated with loan growth, partly offset by capital generation. The bank transferred $8.3 billion of residential mortgage-backed securities from available for sale to held to maturity, an action Bible said was intended to protect tangible capital amid potential regulatory treatment of accumulated other comprehensive income. For the fourth quarter, M&T expects average deposits of $169 billion to $170 billion, noninterest income of $710 million to $730 million and expenses, including intangible amortization, of $1.39 billion to $1.41 billion. The bank plans to operate with a CET1 ratio between 10% and 10.25% through the remainder of the year. M&T Bank Corporation is a regional financial services company headquartered in Buffalo, New York. Founded in 1856, the company operates primarily through its M&T Bank subsidiary and serves consumers, businesses, institutions and government entities. M&T Bank provides a range of banking products and services, including checking and savings accounts, consumer lending, residential mortgages, credit cards, commercial loans, treasury management and investment services. Through its wealth management and institutional businesses, the company also offers trust, investment management, custody and related financial services. The bank serves customers across a footprint concentrated in the Mid-Atlantic and Northeastern United States, including New York, Pennsylvania, Maryland, New Jersey, Delaware, Virginia, West Virginia and Washington, DC Its businesses also include Wilmington Trust, which provides wealth management, corporate and institutional trust, and related services. John R. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What M&T Bank (MTB) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.