M&T Bank beats Q3 estimates on lower-than-expected provisions

M&T Bank Corporation (NYSE:MTB) reported stronger third quarter earnings, surpassing market predictions. Adjusted earnings per share reached $5.08, exceeding the expected $4.93. The bank's shares jumped 1.53% in early trading after the release. Revenue for the period stood at $2.54 billion, just shy of the $2.53 billion forecast, but up 2% from the same quarter in 2025.

Net income came in at $775 million, a 2% decline year-over-year from $792 million. The bank's average loans increased to $143.3 billion, driven by growth in commercial real estate, consumer, and residential real estate portfolios. Noninterest income fell 1% year-over-year to $743 million, while noninterest expenses rose 2% to $1.39 billion, primarily due to increased technology infrastructure costs.

CFO Daryl N. Bible highlighted the bank's robust loan and deposit growth, stable credit, and solid capital position as key drivers of the results. The provision for credit losses rose to $135 million from $120 million in the prior quarter and $125 million the previous year. Net charge-offs as a percentage of average loans decreased to 0.35%, down from 0.42% in the same quarter last year.

The allowance for loan losses dropped to 1.51% of total loans from 1.59% a year ago. During the quarter, M&T repurchased 1.3 million shares worth $323 million. As of September 30, 2026, the bank's CET1 capital ratio stood at 10.16%.