10-Q · August 4, 2026
M&T delivered a strong Q2, with $2.532 billion of revenue, $818 million of net income and diluted EPS of $5.32, up 23% and 29%, respectively, from Q1. Results benefited from higher earning assets, improved commercial…
Earnings analysis · 10-Q
MTB earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
M&T delivered modest year-over-year improvement in Q3 2026, with revenue of $2.536 billion, net income of $775 million and diluted EPS of $5.04 versus $792 million and $4.82 in Q3 2025. Sequentially, however, earnings…
Read full summary
M&T delivered modest year-over-year improvement in Q3 2026, with revenue of $2.536 billion, net income of $775 million and diluted EPS of $5.04 versus $792 million and $4.82 in Q3 2025. Sequentially, however, earnings declined 5% as the net interest margin compressed to 3.65%, provision expense increased to $135 million and noninterest expense rose 3% to $1.393 billion. Loan growth, improved commercial real estate credit metrics and stronger operating cash flow were positives, but higher borrowings, significant AOCI losses and continued commercial real estate concentration support a neutral assessment.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.04
What stood out
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Revenue edged higher year over year
Q3 total revenue was $2.536 billion, up $3 million from Q2 and $23 million from Q3 2025. Net interest income was $1.793 billion, up 2% year over year, while other income was $743 million.
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Earnings improved year over year
Diluted EPS was $5.04 versus $5.32 in Q2 and $4.82 in Q3 2025. Nine-month diluted EPS was $14.48, up 17% from $12.34 in the comparable 2025 period.
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Full-year margin expanded, but Q3 softened
Net interest margin declined 5 basis points sequentially to 3.65%, as the increase in rates paid on interest-bearing liabilities outpaced the increase in earning-asset yields. The nine-month margin was 3.68%, up 3 basis points year over year.
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Loan growth remained solid
Loans reached $144.756 billion at September 30, 2026, up from $142.530 billion at June 30 and $137.635 billion at December 31, 2025. Average Q3 loans increased 2% sequentially to $143.296 billion, led by commercial real estate and consumer lending.
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Operating cash generation strengthened
Operating cash flow was $3.534 billion for the first nine months, up from $2.480 billion in the prior-year period. Capital expenditures were $164 million versus $87 million, implying cash flow after capital expenditures of approximately $3.370 billion, although the company did not label this measure free cash flow.
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Credit metrics improved year over year
Commercial real estate criticized loans declined to $2.496 billion from $3.454 billion at December 31, 2025, and the criticized-loan ratio fell to 9.8% from 14.8%. Nonaccrual loans were $1.298 billion, down $214 million year over year.
What to watch
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Credit costs increased sequentially
Provision for credit losses increased to $135 million from $120 million in Q2, including a $5 million provision for unfunded commitments. Q3 net charge-offs rose to $127 million from $80 million sequentially, with commercial and industrial net charge-offs increasing to $66 million from $20 million.
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Commercial real estate remains concentrated
Management identified commercial real estate risks from elevated vacancies, lower debt-service coverage ratios and potential refinancing pressure. Commercial real estate concentration increased to 137% of Tier 1 capital plus allowable allowance for credit losses from 124% at December 31, 2025.
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AOCI deterioration pressures capital
Accumulated other comprehensive loss was $680 million at September 30, 2026 versus income of $277 million at December 31, 2025, driven partly by $705 million of after-tax unrealized investment-security losses and $248 million of cash-flow-hedge losses through nine months.
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Liquidity relies more on borrowings
Available liquidity declined to $81.832 billion from $87.952 billion at December 31, 2025, while short-term borrowings increased to $6.373 billion from $2.149 billion and long-term borrowings rose to $13.648 billion from $10.911 billion.
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Downside macro scenario is material
Management's potential downside economic scenario would increase modeled credit losses by $233 million and assumes unemployment of 6.9% in year one and 8.1% in year two, along with cumulative commercial real estate price declines of 17.1%.
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No formal risk-factor changes disclosed
The filing states there were no material changes to the risk factors disclosed in the 2025 Annual Report. Separately, Wilmington Trust faces litigation related to Tricolor securitization transactions seeking unspecified damages; the company stated that potential losses cannot currently be estimated, although they are not expected to be material to financial position.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management stated that it does not anticipate undertaking activities for which adequate funding would be unavailable and that parent-company liquidity covered projected cash outflows for 27 months as of September 30, 2026.
Earlier filings 2
10-Q · May 5, 2026
M&T Bank reported a strong Q1 2026 performance with net income of $664 million, representing a 14% increase compared to the previous year. The bank demonstrated a revenue increase to $3.54 billion, exceeding…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.