MTB

M&T Bank delivered Q3 2026 diluted GAAP earnings per share of $5.04, a modest 5% decline from the prior quarter's $5.32 but representing 17% year-to-date growth versus 2025. The quarter reflects a bank navigating a higher-rate environment with disciplined execution: net interest income held essentially flat at $1.8 billion despite a 5 basis point margin compression to 3.65%, as loan repricing and an additional earning day offset higher deposit and funding costs. The deposit cost increase of 10 basis points was largely attributable to time deposit repricing (4 bps) and the September rate hike (2 bps), with management confident that term funding is now competitively positioned. Loan growth remained solid at 2% linked-quarter, driven by commercial real estate (up 7%) and consumer portfolios, while C&I was flat due to seasonal dealer commercial services declines and owner-occupied weakness, though management expects C&I growth to resume in Q4. Credit quality remained stable near cyclical lows, with non-accrual loans at 90 basis points and net charge-offs at 35 basis points, though criticized loans increased $245 million, primarily in C&I and CRE, reflecting the higher-rate environment's early impact on debt service coverage ratios. Management guided Q4 net interest income to