M&T Bank reports third-quarter net income of $775 million or $5.04 a share

M&T Bank Corporation (MTB) reported third-quarter net income of $775 million, or $5.04 per diluted share, the company said in a news release dated Friday.

Net income fell 2% from a year earlier, while diluted earnings per share rose 5%. Net operating income, a non-GAAP measure that excludes amortization of intangible assets, was $780 million, or $5.08 per diluted share.

Here's how the company did:

• Diluted earnings per share: $5.04 vs. $4.82 a year earlier
• Revenue: $2,536 million vs. $2,513 million a year earlier
• Net income: $775 million vs. $792 million a year earlier
• Net operating income: $780 million vs. $798 million a year earlier

Net interest income rose to $1,793 million from $1,761 million a year earlier. Taxable-equivalent net interest income was $1,805 million, up 2%, and rose nominally from the second quarter, reflecting an additional day, partially offset by lower interest income on nonaccrual loans.

The net interest margin was 3.65%, down from 3.69% a year earlier.

Average loans reached $143.3 billion, up 5% from $135.9 billion a year earlier and up $2.6 billion from the second quarter. Average commercial and industrial loans rose $4.2 billion from a year earlier.

Noninterest income was $743 million, down 1% from $752 million. Trust and investment services income rose 6% to $230 million, and mortgage banking revenues rose 3% to $152 million.

Other revenues from operations fell 25% to $85 million. The year-earlier quarter included a $28 million earnout payment from the 2023 sale of the Collective Investment Trust business.

Noninterest expense rose 2% to $1,393 million from $1,363 million a year earlier. Outside data processing and software costs rose $35 million, reflecting costs associated with enhancements to the company's technology infrastructure. Salaries and employee benefits were $832 million, flat from a year earlier.

The provision for credit losses was $135 million, up from $125 million a year earlier. Net charge-offs were 0.35% of average loans, down from 0.42%.

Nonaccrual loans were $1.3 billion at Sept. 30, down 14% from $1.5 billion a year earlier. Full-time equivalent employees totaled 21,562, down 4% from 22,383.

Fourth-quarter 2026 outlook

The company's fourth-quarter outlook, in an investor presentation furnished with the report, calls for taxable-equivalent net interest income of $1.83 billion to $1.85 billion.

It expects a net interest margin in the mid-3.60s, reflecting one additional rate increase in the fourth quarter.

Fee income is forecast at $710 million to $730 million, with stable to modest growth in most categories.

GAAP noninterest expense is expected at $1.39 billion to $1.41 billion, including intangible amortization.

Net charge-offs are expected at 35 to 40 basis points of average loans, with a taxable-equivalent tax rate of 24.0%.

Average loans, including loans held for sale, are expected at $145 billion to $146 billion, and average deposits at $169 billion to $170 billion. The company expects its CET1 capital ratio to be 10.0% to 10.25%.

Capital, buybacks and dividends

Cash dividends were $1.50 per common share, unchanged from a year earlier, and totaled $217 million on common stock and $42 million on preferred stock for the quarter.

M&T repurchased 1.3 million common shares for $323 million, compared with $409 million in the third quarter of 2025.

The CET1 capital ratio was an estimated 10.16% at Sept. 30, down from 10.99% a year earlier.

“M&T's third quarter results were highlighted by strong loan and deposit growth, stable credit and a solid capital position.” Chief Financial Officer Daryl N. Bible said in the release.

The company also posted an investor presentation on its website on Friday, according to a filing, and attached it as an exhibit.