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M&T Bank Q3 Earnings Beat on Higher NII, Stock Dips on Cost Woes
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Key Takeaways
MTB shares fell nearly 1.2% despite Q3'26 EPS of $5.08, beating estimates of $4.98.
MTB's NII rose 1.8% year over year to $1.81 billion, while loans grew 1.6% sequentially to $144.8 billion.
MTB's non-interest income fell 1.2% year over year, while expenses rose 2.2% to $1.39 billion.
Shares of M&T Bank Corporation (MTB - Free Report) 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.
M&T Bank’s Revenues & Expenses Rise Y/Y
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.
MTB’s Loan Balances Increase & Deposits Decline
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.
M&T Bank’s Credit Quality Improves
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%.
MTB’s Capital Position Mixed & Profitability Ratios Decline Y/Y
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.
M&T Bank’s Capital Distribution Update
MTB repurchased 1.3 million shares of its common stock for $323 million in the third quarter of 2026.
MTB’s Q4 2026 Outlook
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%.
Our View on MTB
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 and EPS Surprise
Fifth Third Bancorp (FITB - Free Report) 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 - Free Report) 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.
View the Zacks #1 Rank List
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M&T Bank Q3 Earnings Beat on Higher NII, Stock Dips on Cost Woes
Key Takeaways
Shares of M&T Bank Corporation (MTB - Free Report) 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.
M&T Bank’s Revenues & Expenses Rise Y/Y
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.
MTB’s Loan Balances Increase & Deposits Decline
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.
M&T Bank’s Credit Quality Improves
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%.
MTB’s Capital Position Mixed & Profitability Ratios Decline Y/Y
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.
M&T Bank’s Capital Distribution Update
MTB repurchased 1.3 million shares of its common stock for $323 million in the third quarter of 2026.
MTB’s Q4 2026 Outlook
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%.
Our View on MTB
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 and EPS Surprise
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 - Free Report) 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 - Free Report) 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.