third quarter 2026
Filed Oct 16, 2026M&T Bank Corporation announces third quarter 2026 results
Third-quarter loan growth, stable taxable-equivalent net interest income, stronger mortgage banking revenue and lower year-over-year nonperforming assets were offset by lower net income, a narrower net interest margin, higher expenses, higher net charge-offs and a sequential decline in tangible capital.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest income, three months ended September 30GAAP | $1.79B | – | 2% |
| Taxable-equivalent net interest income, three months ended September 30non-GAAP | $1.80B | — | 2% |
| Provision for credit losses, three months ended September 30GAAP | $135M | 13% | 8% |
| Total other income, three months ended September 30GAAP | $743M | — | -1% |
| Total other expense, three months ended September 30GAAP | $1.39B | 3% | 2% |
| Income before taxes, three months ended September 30GAAP | $1.01B | – | -2% |
| Income taxes, three months ended September 30GAAP | $233M | – | — |
| Net income, three months ended September 30GAAP | $775M | – | -2% |
| Net income available to common shareholders, three months ended September 30GAAP | $732M | – | -3% |
| Diluted earnings per common share, three months ended September 30GAAP | $5.04 | – | 5% |
| Basic earnings per common share, three months ended September 30GAAP | $5.08 | – | 5% |
| Net operating income, three months ended September 30non-GAAP | $780M | -5% | -2% |
| Diluted net operating earnings per common share, three months ended September 30non-GAAP | $5.08 | -5% | 4% |
| Net interest margin, three months ended September 30other | 3.65% | – | – |
| Net interest spread, three months ended September 30other | 2.97 | – | – |
| Yield on average earning assets, three months ended September 30other | 5.41% | – | – |
| Cost of interest-bearing liabilities, three months ended September 30other | 2.44 | – | – |
| Efficiency ratio, three months ended September 30non-GAAP | 54.4% | – | – |
| Return on average assets, annualized, three months ended September 30GAAP | 1.40% | – | – |
| Return on average common shareholders' equity, annualized, three months ended September 30GAAP | 11.44 | – | – |
| Annualized return on average tangible assets, three months ended September 30non-GAAP | 1.47% | – | – |
| Annualized return on average tangible common equity, three months ended September 30non-GAAP | 17.29 | – | – |
| Effective income tax rate, three months ended September 30GAAP | 23.1% | – | – |
| Average total assets, three months ended September 30GAAP | $218.9B | 1% | 4% |
| Average loans, three months ended September 30other | $143.3B | 2% | 5% |
| Average deposits, three months ended September 30other | $166.8B | – | – |
| Total assets, at September 30GAAP | $220.5B | – | 4% |
| Total loans, at September 30GAAP | $144.8B | – | 6% |
| Total deposits, at September 30GAAP | $167.5B | – | 2% |
| Short-term borrowings, at September 30GAAP | $6.37B | – | 209% |
| Long-term borrowings, at September 30GAAP | $13.65B | – | 6% |
| Allowance for loan losses, at September 30GAAP | $2.18B | — | 1% |
| Allowance for loan losses as a percent of loans outstanding, at September 30other | 1.51% | – | – |
| Nonaccrual loans, at September 30other | $1.30B | 7% | -14% |
| Total nonperforming assets, at September 30other | $1.33B | 8% | -14% |
| Accruing loans past due 90 days or more, at September 30other | $570M | -5% | 32% |
| Net charge-offs, three months ended September 30other | $127M | 59% | -12% |
| Net charge-offs as a percent of average loans, annualized, three months ended September 30other | .35% | – | – |
| CET1 capital ratio, at September 30other | 10.16% | – | – |
| Tangible capital - common, at September 30non-GAAP | 7.85 | – | – |
| Net income, nine months ended September 30GAAP | $2.26B | – | 8% |
| Diluted earnings per common share, nine months ended September 30GAAP | $14.48 | – | 17% |
| Net operating income, nine months ended September 30non-GAAP | $2.27B | – | 7% |
| Diluted net operating earnings per common share, nine months ended September 30non-GAAP | $14.60 | – | 17% |
Capital returns
- M&T repurchased 1.3 million shares of its common stock at a total cost of $323 million in the recent quarter.
- M&T repurchased shares of its common stock at a cost of $323 million during the recent quarter, compared with $465 million and $409 million in the second quarter of 2026 and the third quarter of 2025, respectively.
- Cash dividends declared on M&T's common and preferred stock totaled $217 million and $42 million, respectively, for the quarter ended September 30, 2026.
- Cash dividends per common share were $1.50 for the three months ended September 30, 2026 and $1.50 for the three months ended September 30, 2025.
What drove it
- Average loans grew $2.6 billion in the recent quarter, reflecting higher average commercial real estate loan balances of $1.6 billion, consumer loan balances of $634 million and residential real estate loan balances of $367 million.
- Taxable-equivalent net interest income rose nominally from the second quarter of 2026, reflecting an additional day, lower interest income on nonaccrual loans and loan growth funded by interest-bearing deposits as the Company reduced its average short-term borrowings.
- Taxable-equivalent net interest income increased $32 million, or 2%, from the year-earlier third quarter, reflecting lower rates paid on average interest-bearing deposits and growth in average loans and investment securities, partially offset by lower yields received on loans.
- Mortgage banking revenues increased $25 million sequentially, reflecting a rise in residential mortgage loan sub-servicing income. In June 2026, the Company began sub-servicing $62.9 billion of additional residential mortgage loans.
- Trust and investment services income rose $13 million year over year, reflecting higher corporate trust revenues and an increase in personal trust and investment services revenues.
- M&T began separately presenting loans held for sale from loans held for investment effective for the third quarter of 2026, and all presented periods reflect changes to annualized taxable-equivalent rate methodology.
Concerns
- Net income declined to $775 million from $818 million in the second quarter of 2026 and from $792 million in the third quarter of 2025.
- Net interest margin was 3.65% versus 3.70% in the second quarter of 2026 and 3.69% in the third quarter of 2025.
- Noninterest expense increased $44 million, or 3%, sequentially, driven by outside data processing and software, professional and other services, personnel costs and other costs of operations.
- Net charge-offs were $127 million, compared with $80 million in the second quarter of 2026, while nonaccrual loans rose to $1,298 million from $1,208 million.
- Capital markets and advisory revenues decreased $9 million sequentially and other revenues from operations decreased $10 million, including a lower BLG distribution.
- Tangible common equity to tangible asset ratio declined 22 basis points from June 30, 2026 and 94 basis points from September 30, 2025.
What to watch
- Net interest margin, which was 3.65% in the third quarter of 2026.
- Growth in commercial real estate, consumer and residential real estate loan balances.
- Credit migration, including nonaccrual loans, accruing loans past due 90 days or more, provision for credit losses and net charge-offs.
- Technology infrastructure costs, including outside data processing and software and professional and other services expense.
- Mortgage loan sub-servicing income following the additional $62.9 billion of residential mortgage loans sub-serviced beginning in June 2026.
- CET1 capital ratio, estimated at 10.16% at September 30, 2026, and the effect of unrealized losses on investment securities available for sale.
Balance sheet and cash flow
- Total assets were $220,510 million at September 30, 2026, compared with $219,261 million at June 30, 2026 and $211,277 million at September 30, 2025.
- Total loans were $144,756 million at September 30, 2026, compared with $142,530 million at June 30, 2026 and $136,345 million at September 30, 2025.
- Total deposits were $167,510 million at September 30, 2026, compared with $168,885 million at June 30, 2026 and $163,426 million at September 30, 2025.
- Interest-bearing deposits at banks were $14,342 million at September 30, 2026, compared with $15,499 million at June 30, 2026 and $16,751 million at September 30, 2025.
- In July 2026, the Company transferred $8.3 billion of residential mortgage-backed securities from the available-for-sale portfolio to the held-to-maturity portfolio with net unrealized gains of $8 million.
- Accumulated other comprehensive income declined $588 million in the recent quarter.
- No operating cash flow or free cash flow was reported.
Analysis
M&T reported third-quarter GAAP net income of $775 million and diluted earnings per common share of $5.04. Net income was down from $818 million in the second quarter of 2026 and from $792 million in the third quarter of 2025, although diluted earnings per common share increased from $4.82 a year earlier. Net operating income was $780 million and diluted net operating earnings per common share were $5.08. The release attributes the sequential profile to a combination of nominal taxable-equivalent net interest income growth, modest fee-income growth, higher expenses and a higher provision for credit losses.
Balance-sheet demand remained constructive. Average loans increased $2.6 billion sequentially, led by $1.6 billion of higher average commercial real estate loans, $634 million of higher consumer loans and $367 million of higher residential real estate loans. Average deposits were $166,777 million. Taxable-equivalent net interest income was $1,805 million, nominally higher sequentially and up $32 million, or 2%, year over year. Net interest margin, however, was 3.65%, below 3.70% in the second quarter and 3.69% a year earlier, as the cost of interest-bearing liabilities was 2.44 versus 2.36 in the preceding quarter.
Fee income mix was uneven. Total other income was $743 million, flat sequentially and down 1% year over year. Mortgage banking revenues rose to $152 million from $127 million sequentially as residential mortgage loan sub-servicing income increased following the June commencement of sub-servicing for $62.9 billion of additional residential mortgage loans. This was partly offset by lower capital markets and advisory revenues and a lower BLG distribution. Expenses increased to $1,393 million from $1,349 million in the prior quarter, with software and technology infrastructure, professional services and an additional working day cited as drivers. The efficiency ratio increased to 54.4% from 52.8%.
Credit quality showed mixed sequential movement but improvement from the year-earlier period. The allowance for loan losses as a percent of loans outstanding declined to 1.51% from 1.53% sequentially and 1.59% a year earlier. Nonaccrual loans rose to $1,298 million from $1,208 million sequentially, while total nonperforming assets rose to $1,326 million from $1,231 million. Both were below the year-earlier levels. The provision for credit losses rose to $135 million from $120 million sequentially, and net charge-offs increased to $127 million from $80 million.
Capital remains above regulatory minimums, but the quarter included pressure from share repurchases and unrealized securities losses. M&T repurchased 1.3 million common shares for $323 million and declared common and preferred dividends of $217 million and $42 million. CET1 was estimated at 10.16% at September 30, 2026, versus 10.19% at June 30, 2026. Accumulated other comprehensive income declined $588 million in the recent quarter, and the tangible common equity to tangible asset ratio declined 22 basis points sequentially. The filing did not provide forward financial guidance.
Management, verbatim
M&T's third quarter results were highlighted by strong loan and deposit growth, stable credit and a solid capital position. Fee income in the recent quarter continues to reflect the breadth of M&T's franchise and our ability to meet customers' evolving needs through a wide range of financial capabilities. The continued strength across customer-driven revenue streams demonstrates the value of our diversified business model and the depth of our customer relationships. These relationships are at the heart of our purpose, to make a difference in people's lives. I want to thank our employees for their ongoing commitment to the communities and customers we serve.
Daryl N. Bible, M&T's Chief Financial Officer
Not in the filing
stated, not guessed- Forward guidance for revenue, net interest income, margin, expenses, tax rate, credit costs, capital returns or other financial measures was not reported.
- Prior outlook was not provided.
- GAAP total revenue was not reported.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents as a separately identified cash balance was not reported.
- Operating segment results were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.