M&T's earnings per share rose from a year ago on fewer shares as its capital range narrowed to a quarter point

Impact 4/5 · Guidance · Negative

M&T puts its capital range at 10% to 10.25% as buybacks fall to $323 million

M&T said it plans to run its CET1 ratio at 10% to 10.25% for the rest of 2026. CET1 was an estimated 10.16% at 30 September 2026 against 10.99% a year earlier, and buybacks were $323 million, down from $465 million in the quarter before. In October 2025 the bank had guided to 10.75% to 11%, and in July to the lower part of 10% to 10.5%, so the new range puts a number on the lower part of July's band rather than cutting it. A lower buyback pace leaves per-share growth more dependent on earnings.

“We plan to continue to operate a CET1 ratio of 10% to 10.25% and for the remainder of the year.”— Daryl Bible, chief financial officer

Impact 3/5 · Risk · Negative

M&T criticized loans rise $245M, ending nine quarter-on-quarter declines reported in July

Criticized loans, which the bank flags as showing weakness, rose $245 million to $6.1 billion, mostly in commercial and industrial loans. Nonaccrual loans rose $90 million to $1.3 billion, 0.90% of loans against 0.85% a quarter earlier and 1.11% a year earlier. In July the bank reported the ninth consecutive quarter-on-quarter decline in criticized commercial loans, in the last nine quarters. Asked about an auto-leasing credit, a M&T executive on the call called it idiosyncratic and said the bank had expected it, and projected overall criticized loans to be down a little near term.

“Asset quality remained relatively stable this quarter, with net charge-offs below our initial year expectations and nonaccrual loans remaining near cyclical lows.”— Daryl Bible, chief financial officer

Impact 3/5 · Balance sheet · Mixed

M&T: bond losses would cut CET1 by 29 basis points if counted, against 2 in July

M&T said that if unrealized losses on securities available for sale and pension items counted in regulatory capital, CET1 would be 29 basis points lower, against a 2 basis point reduction in July and a 13 basis point benefit in October 2025 and January 2026; they do not count today. The unrealized pretax loss on available-for-sale securities was $745 million at 30 September 2026, after the bank moved $8.3 billion of mortgage-backed securities to held-to-maturity in July. In April the bank estimated that the pending Basel III capital proposals would lift CET1 by about 90 basis points through lower risk-weighted assets.

“That action reflects our continued discipline to protecting tangible capital”— Daryl Bible, chief financial officer

Impact 3/5 · Margin · Mixed

M&T deposit costs rise 10 basis points to 2.05% as its margin slips to 3.65%

The cost of interest-bearing deposits rose 10 basis points to 2.05%, and the net interest margin was 3.65% against 3.70% in the quarter before. Taxable-equivalent net interest income was flat at $1.805 billion. For the fourth quarter M&T guided to taxable-equivalent net interest income of $1.83 billion to $1.85 billion, assuming one more rate rise in December. With the nine-month total, that implies about $7.20 billion to $7.22 billion for 2026 on the same reading, calculated from the reported figures, at the bottom of January's $7.2 billion to $7.35 billion range.

“Importantly, the deposit growth allowed us to reduce our reliance on borrowings”— Daryl Bible, chief financial officer

Impact 3/5 · Guidance · Positive

M&T's fee outlook implies 2026 fees above its July range, helped by Bayview

For the fourth quarter M&T guided to noninterest income of $710 million to $730 million. Added to $2,172 million in the first nine months, that gives $2.88 billion to $2.90 billion for 2026, calculated from the reported figures and the outlook, above July's guidance of $2.8 billion to $2.85 billion. Income from Bayview Lending Group was $111 million over nine months against $20 million a year earlier, which is $91 million of the $126 million rise in fees.

“reflecting stable to modest growth across most fee income categories, except for other revenues from operations”— Daryl Bible, chief financial officer

Impact 2/5 · Margin · Mixed

M&T's operating expenses grew 2.4% from a year ago against 1.0% for revenue

Noninterest expense was $1.393 billion, $44 million more than the quarter before, and the efficiency ratio rose to 54.4% from 52.8%, though the nine-month ratio improved to 55.1% from 56.3%. Calculated from the filed figures, operating expense (noninterest expense excluding amortization of intangibles) rose 2.4% from a year ago against 1.0% for taxable-equivalent revenue. Outside data processing and software cost $173 million, up 25% from a year ago. In July the bank guided to the top end of its $5.5 billion to $5.6 billion range; nine months plus its fourth-quarter outlook gives about $5.57 billion to $5.59 billion, calculated from the reported figures.