M&T Bank Corporation

11/05/2026 | Press release | Distributed by Public on 11/05/2026 12:22

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations.
This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the consolidated financial statements and other information included in this Quarterly Report on Form 10-Q as well as with M&T's 2025 Annual Report. Information regarding the Company's business, its supervision and regulation and potential risks and uncertainties that may affect the Company's business, financial condition, liquidity and results of operations are also included in the 2025 Annual Report.
Financial Reporting Matters
As reported on M&T's Form 8-K dated September 28, 2026, effective for the third quarter of 2026 M&T made certain changes and reclassifications to other income categories presented in its Consolidated Statement of Income. Also effective for the third quarter of 2026, M&T began separately presenting loans held for sale from loans held for investment in its Consolidated Balance Sheet and its Average Balance Sheet and Annualized Taxable-equivalent Rates disclosures. Accordingly, annualized taxable-equivalent rates for each impacted loan category and certain loan-based credit quality ratios exclude loans held for sale. Additionally, as reported in M&T's Form 10-Q for the quarter ended June 30, 2026, in conjunction with the implementation of a new general ledger platform during the second quarter of 2026, the Company modified its methodology for calculating annualized taxable-equivalent rates for certain earning assets and interest-bearing liabilities, including certain average deposit balances. All periods presented herein reflect those changes.
Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value with changes in fair value reflected in mortgage banking revenues. As a result, amortization associated with residential mortgage loan servicing right assets previously recognized in other costs of operations is no longer recorded. Instead, beginning in 2026, fair value changes in the residential mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in mortgage banking revenues. On December 31, 2025, the Company began economically hedging the risk of fair value changes in these assets through the use of various interest rate and other derivative contracts, for which changes in fair value are also reflected in mortgage banking revenues. As a result of the Company's election on January 1, 2026 to prospectively measure residential mortgage loan servicing right assets at fair value, the Company recorded an increase in capitalized servicing assets included in accrued interest and other assets of $263 million and a corresponding after-tax increase to retained earnings of $197 million, representing an 8 basis-point increase to the CET1 capital ratio on the election date.
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Financial Overview
A summary of financial results for the Company is provided below.
SUMMARY OF FINANCIAL RESULTS
Three Months Ended Change Nine Months Ended Change
(Dollars in millions, except per share) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Net interest income $ 1,793 $ 1,792 $ 1 - % $ 5,337 $ 5,169 $ 168 3 %
Taxable-equivalent adjustment (a) 12 12 - 1 35 33 2 7
Net interest income (taxable-equivalent basis) (a) 1,805 1,804 1 - 5,372 5,202 170 3
Provision for credit losses 135 120 15 13 395 380 15 4
Other income 743 740 3 - 2,172 2,046 126 6
Other expense 1,393 1,349 44 3 4,180 4,114 66 2
Net income 775 818 (43) -5 2,257 2,092 165 8
Per common share data:
Basic earnings 5.08 5.35 (.27) -5 14.57 12.41 2.16 17
Diluted earnings 5.04 5.32 (.28) -5 14.48 12.34 2.14 17
Performance ratios, annualized
Return on:
Average assets 1.40 % 1.51 % 1.39 % 1.33 %
Average common shareholders' equity 11.44 12.30 11.13 10.07
Net interest margin 3.65 3.70 3.68 3.65
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(a)Net interest income data are presented on a taxable-equivalent basis which is a non-GAAP measure. The taxable-equivalent adjustment represents additional income taxes that would be due if all interest income were subject to income taxes. This adjustment, which is related to interest received on qualified municipal securities, industrial revenue financings and preferred equity securities, is based on the statutory federal income tax rate.
The decrease in net income in the recent quarter as compared with the second quarter of 2026 resulted from the following:
•Net interest income on a taxable-equivalent basis increased nominally reflecting an additional day, partially offset by lower interest income on nonaccrual loans. The Company's net interest margin declined 5 basis points from the second quarter of 2026 as the increase in rates paid on interest-bearing liabilities outpaced the growth in yields on earning assets.
•The provision for credit losses increased $15 million reflecting loan growth and a provision for unfunded credit commitments in the recent quarter.
•Noninterest income increased $3 million resulting from an increase in residential mortgage banking revenues, partially offset by a decrease in capital markets and advisory revenues and a lower distribution from M&T's investment in BLG in the recent quarter.
•Noninterest expense rose $44 million reflecting an increase in outside data processing and software costs and professional and other services expense each associated with enhancements and support of technology infrastructure and other enterprise initiatives as well as higher salaries and employee benefits expense.
The increase in net income in the nine months ended September 30, 2026 as compared with the same 2025 period reflected the following:
•Net interest income on a taxable-equivalent basis increased $170 million reflecting higher average earning assets and interest-bearing liabilities. A 3 basis-point expansion of the Company's net interest margin reflects reductions in deposit and borrowing costs that outpaced a decline in yields received on earning assets and lower contribution from net interest-free funds.
•The provision for credit losses increased $15 million reflecting loan growth, partially offset by a lower provision for unfunded credit commitments.
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•Noninterest income rose $126 million reflecting higher trust and investment services income, capital markets and advisory revenues and other revenues from operations. Distributions from M&T's investment in BLG included in other revenues from operations totaled $111 million in the first nine months of 2026 and $20 million in the comparable 2025 period. Other revenues from operations in the first three quarters of 2025 also included a $28 million distribution of an earnout payment related to the Company's 2023 sale of its CIT business, gains on the sales of an out-of-footprint loan portfolio of $15 million and a subsidiary that specialized in institutional services of $10 million, and a $12 million gain on the sale of equipment leases. Mortgage banking revenues in the first nine months of 2026 reflect a rise in residential mortgage loan sub-servicing income, partially offset by the impact of the Company's accounting election described herein.
•Noninterest expense increased $66 million reflecting a rise in salaries and employee benefits expense, outside data processing and software costs, and professional and other services expense, partially offset by lower other costs of operations. Other costs of operations in the first nine months of 2025 included amortization of residential mortgage loan servicing right assets of $75 million.
Under programs authorized by the Board of Directors, M&T repurchased 1.3 million shares of its common stock in the recent quarter at a total cost of $323 million, compared with 2.1 million shares at a total cost of $465 million in the second quarter of 2026. During the nine months ended September 30, 2026, M&T repurchased 8.9 million shares of its common stock at a total cost of $2.0 billion, compared with 11.6 million shares at a total cost of $2.2 billion during the first nine months of 2025. In July 2026, M&T issued 60,000 shares of Perpetual Fixed Rate Non-Cumulative Preferred Stock, Series L, with a liquidation preference of $10,000 per share. On November 1, 2026, M&T redeemed all 50,000 outstanding shares of its Perpetual Fixed-to-Floating Rate Non-cumulative Preferred Stock, Series F, for $500 million.
Supplemental Reporting of Non-GAAP Results of Operations
M&T consistently provides supplemental reporting of its results on a "net operating" or "tangible" basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains (when realized) and expenses (when incurred) associated with merging acquired or to be acquired operations into the Company, since such items are considered by management to be "nonoperating" in nature. Although "net operating income" as defined by M&T is not a GAAP measure, M&T's management believes that this information helps investors understand the effect of acquisition activity in reported results.
SUPPLEMENTAL REPORTING OF NON-GAAP RESULTS OF OPERATIONS
Three Months Ended Change Nine Months Ended Change
(Dollars in millions, except per share) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Net operating income $ 780 $ 823 $ (43) -5 % $ 2,274 $ 2,116 $ 158 7 %
Diluted net operating earnings per share 5.08 5.35 (.27) -5 14.60 12.49 2.11 17
Annualized return on:
Average tangible assets 1.47 % 1.59 % 1.46 % 1.41 %
Average tangible common equity 17.29 18.57 16.78 15.07
Efficiency ratio 54.4 52.8 55.1 56.3
Tangible equity per common share (a) $ 115.88 $ 117.41 (1.53) -1 $ 115.88 $ 115.31 0.57 -
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(a)At the period end.
The efficiency ratio measures the relationship of noninterest operating expenses, which exclude expenses M&T considers to be "nonoperating" in nature consisting of amortization of core deposit and other intangible assets and merger-related expenses, to revenues. The calculations of the Company's efficiency ratio, or noninterest operating expenses divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), and reconciliations of GAAP amounts with corresponding non-GAAP amounts are presented in Table 2.
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Taxable-equivalent Net Interest Income
Interest income earned on certain of the Company's assets is exempt from federal income tax. Taxable-equivalent net interest income is a non-GAAP measure that adjusts income earned on a tax-exempt asset to present it on an equivalent basis to interest income earned on a fully taxable asset. The Company's average balance sheets accompanied by the taxable-equivalent interest income and expense and the annualized average rate on the Company's earning assets and interest-bearing liabilities are presented as follows.
AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES
Three Months Ended
September 30, 2026 June 30, 2026
(Dollars in millions) Average
Balance 		Interest Average
Rate 		Average
Balance 		Interest Average
Rate
Assets
Earning assets:
Loans (a):
Commercial and industrial $ 65,887 $ 996 6.00 % $ 65,883 $ 986 6.00 %
Real estate - commercial 24,862 379 6.03 23,221 364 6.29
Real estate - residential 25,194 295 4.69 24,827 287 4.63
Consumer 27,353 446 6.47 26,719 431 6.46
Total loans 143,296 2,116 5.86 140,650 2,068 5.89
Loans held for sale 682 9 5.48 777 10 5.50
Interest-bearing deposits at banks 14,209 136 3.79 15,061 139 3.72
Investment securities (b):
U.S. Treasury 3,737 37 3.97 3,624 36 3.98
Mortgage-backed securities (c) 31,719 347 4.37 31,763 345 4.35
State and political subdivisions 1,968 18 3.65 2,057 19 3.56
Other 1,128 16 5.70 1,284 15 4.76
Total investment securities 38,552 418 4.33 38,728 415 4.29
Other - - - - - -
Total earning assets 196,739 2,679 5.41 195,216 2,632 5.40
Goodwill 8,465 8,465
Core deposit and other intangible assets 45 51
Other assets 13,611 12,800
Total assets $ 218,860 $ 216,532
Liabilities and shareholders' equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and interest-checking deposits $ 108,013 $ 515 1.89 % $ 105,752 $ 477 1.81 %
Time deposits 15,056 121 3.19 13,808 104 3.02
Total interest-bearing deposits 123,069 636 2.05 119,560 581 1.95
Short-term borrowings 5,248 52 3.89 8,016 77 3.86
Long-term borrowings 13,977 186 5.32 12,778 170 5.33
Total interest-bearing liabilities 142,294 874 2.44 140,354 828 2.36
Noninterest-bearing deposits 43,708 43,964
Other liabilities 4,527 4,275
Total liabilities 190,529 188,593
Shareholders' equity 28,331 27,939
Total liabilities and shareholders' equity $ 218,860 $ 216,532
Net interest spread 2.97 3.04
Contribution of interest-free funds .68 .66
Net interest income/margin on earning assets $ 1,805 3.65 % $ 1,804 3.70 %
Total deposits $ 166,777 $ 636 1.52 % $ 163,524 $ 581 1.42 %
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(a)Includes nonaccrual loans.
(b)Includes available-for-sale securities at amortized cost.
(c)Primarily government issued or guaranteed.
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AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES (continued)
Nine Months Ended
September 30, 2026 September 30, 2025
(Dollars in millions) Average
Balance 		Interest Average
Rate 		Average
Balance 		Interest Average
Rate
Assets
Earning assets:
Loans (a):
Commercial and industrial $ 65,139 $ 2,923 6.00 % $ 61,234 $ 2,934 6.41 %
Real estate - commercial 23,709 1,091 6.15 24,796 1,177 6.34
Real estate - residential 24,832 860 4.62 23,543 794 4.50
Consumer 26,797 1,297 6.47 25,275 1,244 6.58
Total loans 140,477 6,171 5.87 134,848 6,149 6.09
Loans held for sale 819 33 5.45 750 39 6.92
Interest-bearing deposits at banks 15,159 424 3.74 19,037 635 4.46
Investment securities (b):
U.S. Treasury 4,378 132 4.04 8,210 243 3.96
Mortgage-backed securities (c) 30,757 1,000 4.34 23,933 734 4.09
State and political subdivisions (d) 2,042 55 3.58 2,259 38 2.22
Other 1,201 43 4.78 1,064 41 5.17
Total investment securities 38,378 1,230 4.28 35,466 1,056 3.98
Other 31 - - 96 3 3.46
Total earning assets 194,864 7,858 5.39 190,197 7,882 5.54
Goodwill 8,465 8,465
Core deposit and other intangible assets 52 86
Other assets 13,043 11,141
Total assets $ 216,424 $ 209,889
Liabilities and shareholders' equity
Interest-bearing liabilities:
Interest-bearing deposits:
Savings and interest-checking deposits $ 106,783 $ 1,475 1.85 % $ 103,378 $ 1,720 2.22 %
Time deposits 13,982 322 3.08 14,056 366 3.48
Total interest-bearing deposits 120,765 1,797 1.99 117,434 2,086 2.37
Short-term borrowings 6,318 183 3.87 3,013 101 4.50
Long-term borrowings 12,617 506 5.35 11,675 493 5.64
Total interest-bearing liabilities 139,700 2,486 2.38 132,122 2,680 2.71
Noninterest-bearing deposits 44,070 44,877
Other liabilities 4,349 4,142
Total liabilities 188,119 181,141
Shareholders' equity 28,305 28,748
Total liabilities and shareholders' equity $ 216,424 $ 209,889
Net interest spread 3.01 2.83
Contribution of interest-free funds .67 .82
Net interest income/margin on earning assets $ 5,372 3.68 % $ 5,202 3.65 %
Total deposits $ 164,835 $ 1,797 1.46 % $ 162,311 $ 2,086 1.72 %
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(a)Includes nonaccrual loans.
(b)Includes available-for-sale securities at amortized cost.
(c)Primarily government issued or guaranteed.
(d)The yield on state and political subdivision investment securities for the nine-month period ended September 30, 2025 reflects $18 million of lower taxable-equivalent interest income resulting from an alignment of amortization periods for certain municipal bonds obtained from the acquisition of People's United Financial, Inc.
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Taxable-equivalent net interest income can be impacted by changes in the composition of the Company's earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads. The FOMC raised its federal funds target interest rate by 25 basis points in September 2026. The FOMC lowered its federal funds target interest rate by a total of 75 basis points in the last four months of 2025 and then maintained its target interest rate until that aforementioned increase.
Taxable-equivalent net interest income increased nominally in the recent quarter as compared with the second quarter of 2026 reflective of an additional day, lower interest income on nonaccrual loans and loan growth that was funded by interest-bearing deposits as the Company reduced its average short-term borrowings. The net interest margin declined to 3.65% reflecting an 8 basis-point increase in rates paid on interest-bearing liabilities resulting from the growth and mix of deposits and the FOMC action in September, partially offset by a 1 basis-point increase in yields received on earning assets and a 2 basis-point increase in the contribution of net interest-free funds.
Taxable-equivalent net interest income for the first nine months of 2026 increased $170 million as compared with the same 2025 period. That increase reflects higher earning assets and a 3 basis-point widening of the net interest margin to 3.68% driven by a 33 basis-point decrease in the cost of interest-bearing liabilities, partially offset by a 15 basis-point decline in each of the yields received on earning assets and the contribution from net interest-free funds. The aforementioned FOMC interest rate reductions in 2025 contributed to those changes. The yields received on earning assets in the first nine months of 2026 reflect a comparatively favorable impact from interest rate swap agreements entered into for interest rate risk purposes on yields received on commercial and industrial and commercial real estate loans. Partially offsetting the overall decline in yields received on earning assets was an increase in the yields received on investment securities from the deployment of liquidity into fixed rate investment securities throughout 2025 and the first nine months of 2026 that yielded higher rates than investment securities that matured or were sold.
Future changes in market interest rates or spreads, as well as changes in the composition of the Company's portfolios of earning assets and interest-bearing liabilities that result in changes to spreads, could impact the Company's net interest income and net interest margin. Future changes in the levels of net interest-free funds and the interest rates used to value such funds could also impact the Company's net interest margin.
Interest rate swap agreements
Management assesses the potential impact of future changes in interest rates and spreads by projecting net interest income under several interest rate scenarios. In managing interest rate risk, the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its earning assets and interest-bearing liabilities. Under the terms of those interest rate swap agreements, the Company generally received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Periodic settlement amounts arising from these agreements are reflected in either the yields received on earning assets or the rates paid on interest-bearing liabilities. The Company enters into forward-starting interest rate swap agreements predominantly to hedge interest rate exposures expected in future periods. The following table summarizes information about interest rate swap agreements entered into for interest rate risk management purposes at September 30, 2026 and December 31, 2025.
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INTEREST RATE SWAP AGREEMENTS - DESIGNATED AS HEDGES
Notional Amount Weighted-Average
Maturity
(In years)
Weighted-
Average Rate
(Dollars in millions)
Fixed
Variable
September 30, 2026
Fair value hedges:
Fixed rate long-term borrowings - active $ 6,100 4.1 3.56 % 4.05 %
Fixed rate long-term borrowings - forward-starting 1,250 4.1 4.62 3.75
Total fair value hedges 7,350 4.1
Cash flow hedges:
Variable rate commercial real estate and commercial and industrial loans:
Active 16,701 1.1 3.70 3.79
Forward-starting 8,750 1.9 3.97 3.75
Total cash flow hedges 25,451 1.4
Total $ 32,801 2.0
December 31, 2025
Fair value hedges:
Fixed rate long-term borrowings - active $ 4,350 3.9 3.52 % 4.09 %
Fixed rate long-term borrowings - forward-starting 1,750 7.1 3.68 3.84
Total fair value hedges 6,100 4.8
Cash flow hedges:
Variable rate commercial real estate and commercial and industrial loans:
Active 15,200 0.7 3.81 3.78
Forward-starting 9,700 2.0 3.37 3.84
Total cash flow hedges 24,900 1.3
Total $ 31,000 2.0
Information regarding the fair value of interest rate swap agreements designated as fair value hedges and cash flow hedges is presented in note 11 of Notes to Financial Statements. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes (excluding forward-starting interest rate swap agreements not in effect during the quarter), the related effect on net interest income and margin, and the weighted-average interest rates received or paid on those swap agreements are presented in the table that follows.
INTEREST RATE SWAP AGREEMENTS - EFFECT ON NET INTEREST INCOME
Three Months Ended Nine Months Ended
September 30, 2026 June 30, 2026 September 30, 2026 September 30, 2025
(Dollars in millions) Amount Rate (a) Amount Rate (a) Amount Rate (a) Amount Rate (a)
Increase (decrease) in:
Interest income $ 3 .01 % $ 8 .02 % $ 16 .01 % $ (108) -.08 %
Interest expense 5 .01 3 .01 12 .01 31 .03
Net interest income/margin $ (2) -.01 % $ 5 .01 % $ 4 - % $ (139) -.10 %
Average notional amount (b) $ 21,695 $ 21,265 $ 21,298 $ 20,614
Rate received (c) 3.70 % 3.75 % 3.74 % 3.50 %
Rate paid (c) 3.74 3.68 3.72 4.40
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(a)Computed as an annualized percentage of average earning assets or interest-bearing liabilities.
(b)Excludes forward-starting interest rate swap agreements not in effect during the period.
(c)Weighted-average rate received or paid on interest rate swap agreements in effect during the period.
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Lending activities
The following table summarizes changes in the components of average loans.
AVERAGE LOANS
Three Months Ended Nine Months Ended
(Dollars in millions) September 30,
2026 		June 30,
2026 		Percentage Change September 30,
2026 		September 30,
2025
Percentage Change
Commercial and industrial $ 65,887 $ 65,883 - % $ 65,139 $ 61,234 6 %
Real estate - commercial 24,862 23,221 7 23,709 24,796 -4
Real estate - residential 25,194 24,827 1 24,832 23,543 5
Consumer:
Home equity lines and loans 4,929 4,846 2 4,856 4,613 5
Recreational finance 15,044 14,483 4 14,538 13,317 9
Automobile 4,916 4,992 -2 4,997 5,120 -2
Other 2,464 2,398 3 2,406 2,225 8
Total consumer 27,353 26,719 2 26,797 25,275 6
Total $ 143,296 $ 140,650 2 % $ 140,477 $ 134,848 4 %
Average loans totaled $143.3 billion in the third quarter of 2026, up $2.6 billion from the second quarter of 2026.
•Commercial real estate loans increased $1.6 billion primarily reflecting an increase in average permanent loans secured by multifamily and health services properties.
•Average residential real estate loans increased $367 million reflecting purchases in the second quarter of 2026 and the retention of originated residential mortgage loans.
•Average consumer loans increased $634 million reflecting higher average balances of recreational finance loans of $561 million and modest growth in average balances of home equity loans and lines of credit.
In the first nine months of 2026, average loans increased $5.6 billion from the corresponding 2025 period.
•Average commercial and industrial loans increased $3.9 billion reflecting growth that spanned most industry types.
•Average commercial real estate loans declined $1.1 billion reflecting various strategies the Company executed to reduce its relative concentration of such loans designated as criticized, partially offset by increased originations in 2026. Average commercial real estate construction loans decreased $1.5 billion, partially offset by an increase of $429 million in average permanent commercial real estate loans. The decline in average commercial real estate construction loans reflects the sale of $661 million of out-of-footprint residential builder and developer loans in June 2025.
•Average residential real estate loans increased $1.3 billion reflecting the retention of originated residential mortgage loans and purchases.
•Average consumer loans increased $1.5 billion primarily reflecting growth in average recreational finance loans of $1.2 billion and home equity loans and lines of credit of $243 million.
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Commercial and industrial borrowers in the financial and insurance industry include real estate investment trusts and other specialty lending businesses including fund banking companies and mortgage warehouse lending businesses. At September 30, 2026 and December 31, 2025, approximately 91% and 89% of loans to the financial and insurance industry, respectively, and 7% of loans to the services industry, at each date, were designated as loans to NDFIs as prescribed in regulatory guidance applicable to the Company. The following table presents commercial and industrial commitments and outstanding balances of loans to NDFIs at September 30, 2026 and December 31, 2025.
COMMERCIAL AND INDUSTRIAL COMMITMENTS AND LOANS TO NDFIs
September 30, 2026 December 31, 2025
(Dollars in millions)
Commitment Amount Outstanding Balance Commitment Amount Outstanding Balance
Mortgage credit intermediaries (a) $ 12,507 $ 6,939 $ 10,197 $ 5,591
Private equity funds (b) 6,178 3,298 5,981 3,287
Business credit intermediaries (c) 3,881 2,000 3,288 1,770
Consumer credit intermediaries (d) 994 523 1,145 731
Other 2,810 967 3,269 1,139
Total $ 26,370 $ 13,727 $ 23,880 $ 12,518
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(a)Includes real estate investment trust credit facilities, residential mortgage warehouse lines of credit and mortgage loan servicing rights secured financing.
(b)Primarily subscription credit facilities.
(c)Includes credit facilities to wholesale lender finance and leasing companies and business development companies.
(d)Includes credit facilities to consumer lender finance and leasing companies.
Investing activities
The Company's investment securities portfolio is primarily comprised of government-issued or guaranteed residential and commercial mortgage-backed securities and U.S. Treasury securities, but also includes municipal and other securities. When purchasing investment securities, the Company considers its liquidity position and its overall interest rate risk profile as well as the adequacy of expected returns relative to risks assumed, including prepayments. The Company may occasionally sell investment securities as a result of movements in interest rates and spreads, changes in liquidity needs, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio. The amounts of investment securities held by the Company are influenced by such factors as available yield in comparison with alternative investments, demand for loans, which generally yield more than investment securities, ongoing repayments, the levels of deposits, and management of liquidity and balance sheet size and resulting capital ratios.
In July 2026, the Company transferred $8.3 billion of residential mortgage-backed securities from the available-for-sale portfolio to the held-to-maturity portfolio with gross unrealized gains of $32 million and gross unrealized losses of $24 million at the time of transfer. Those transfers reflect the Company's ability and intent to hold the investment securities until maturity and reduce the impact of future fluctuations in their fair value on its capital position.
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Information about the Company's average investment securities portfolio is presented in the following table.
AVERAGE INVESTMENT SECURITIES
Three Months Ended Nine Months Ended
(Dollars in millions) September 30,
2026 		June 30,
2026 		Percentage Change September 30,
2026 		September 30,
2025 		Percentage Change
Investment securities available for sale:
U.S. Treasury $ 3,338 $ 3,227 3 % $ 3,978 $ 7,702 -48 %
Mortgage-backed securities (a) 16,283 22,213 -27 19,153 13,435 43
Other 1 1 - 1 3 -65
Total available for sale 19,622 25,441 -23 23,132 21,140 9
Investment securities held to maturity:
U.S. Treasury 399 397 - 400 508 -21
Mortgage-backed securities (a) 15,436 9,550 62 11,604 10,498 11
State and political subdivisions 1,968 2,057 -4 2,042 2,259 -10
Other 1 1 -4 1 1 -14
Total held to maturity 17,804 12,005 48 14,047 13,266 6
Equity and other securities 1,126 1,282 -12 1,199 1,060 13
Total investment securities $ 38,552 $ 38,728 - % $ 38,378 $ 35,466 8 %
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(a)Primarily government issued or guaranteed.
The investment securities portfolio averaged $38.6 billion in the third quarter of 2026, a modest decline from the second quarter of 2026. Investment securities averaged $38.4 billion for the nine months ended September 30, 2026, an increase of $2.9 billion from the similar 2025 period. That increase reflects the Company's deployment of liquidity into predominantly fixed-rate mortgage-backed investment securities. In the first quarter of 2026 the Company sold $2.5 billion of U.S. Treasury securities, all of which had maturity dates in 2026. There were no significant sales of debt investment securities in the second or third quarters of 2026 or the first three quarters of 2025. The weighted-average current yield for total investment securities available for sale was 4.48% at September 30, 2026, compared with 4.73% at June 30, 2026 and 4.65% at September 30, 2025. The weighted-average duration of that portfolio was 3.6 years and 3.1 years at September 30, 2026 and June 30, 2026, respectively, compared with 2.5 years at September 30, 2025. The increase in the weighted-average duration from September 30, 2025 reflects the sale of U.S. Treasury securities near maturity and purchase of fixed-rate mortgage-backed investment securities with longer maturity dates and the impact of rising interest rates on fixed-rate mortgage-backed investment securities. The Company routinely adjusts its holdings of capital stock of the FHLB of New York and the FRB of New York based on amounts of outstanding borrowings and available lines of credit with those entities.
The Company regularly reviews its debt investment securities for declines in value below amortized cost that might be indicative of credit-related losses. There were no credit-related losses on debt investment securities recognized in each of the nine months ended September 30, 2026 and September 30, 2025. Additional information about the investment securities portfolio is included in notes 3 and 13 of Notes to Financial Statements.
Other earning assets are comprised primarily of interest-bearing deposits at banks. Other earning assets averaged $14.2 billion and $15.1 billion during the three months ended September 30, 2026 and June 30, 2026, respectively, and $15.2 billion and $19.1 billion during the nine months ended September 30, 2026 and 2025, respectively. The amounts of other earning assets at those respective dates were primarily comprised of deposits held at the FRB of New York. The Company considers such deposits to be an immediate source of funds in its liquidity management processes. In general, the levels of those deposits often fluctuate due to changes in deposits of retail and commercial customers, trust-related deposits and brokered deposits, lending activities and additions to or maturities of investment securities or borrowings.
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Funding activities - deposits
The most significant source of funding for the Company is core deposits from its customer base. The Company considers noninterest-bearing deposits, savings and interest-checking deposits and time deposits of $250,000 or less as core deposits. The Company's domestic banking network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Average core deposits represented 79% of average earning assets for each of the quarters ended September 30, 2026 and June 30, 2026 and for the nine months ended September 30, 2026, compared with 78% for the nine months ended September 30, 2025. The Company also utilizes brokered deposits as a component of its wholesale funding strategy. Depending on market conditions, including demand by customers and other investors, and the cost of funds available from alternative sources, the Company may change the amount or composition of brokered deposits in the future. The following table provides an analysis of changes in the components of average deposits.
AVERAGE DEPOSITS
Three Months Ended Nine Months Ended
(Dollars in millions) September 30, 2026 June 30, 2026 Percentage Change September 30, 2026 September 30, 2025 Percentage Change
Noninterest-bearing deposits $ 43,708 $ 43,964 -1 % $ 44,070 $ 44,877 -2 %
Savings and interest-checking deposits (a) 102,649 100,243 2 100,006 93,343 7
Time deposits of $250,000 or less 9,894 9,967 -1 9,937 10,444 -5
Total core deposits (a) 156,251 154,174 1 154,013 148,664 4
Time deposits greater than $250,000 3,035 2,865 6 2,906 3,003 -3
Brokered savings and interest-checking deposits (a) 5,364 5,509 -3 6,777 10,035 -32
Brokered time deposits 2,127 976 118 1,139 609 87
Total deposits $ 166,777 $ 163,524 2 % $ 164,835 $ 162,311 2 %
__________________________________________________________________________________
(a)During the second quarter of 2026, certain savings and interest-checking deposit arrangements were redesignated as core deposits consistent with regulatory presentation. The resulting increase in average core deposits and decrease in average brokered deposits was $4.4 billion and $3.5 billion for the three months ended September 30, 2026 and June 30, 2026, respectively, and was $2.7 billion for the nine months ended September 30, 2026.
Total deposits averaged $166.8 billion in the recent quarter, up $3.3 billion from the second quarter of 2026. The increase reflects higher average core savings and interest-checking deposits of $2.4 billion and average brokered time deposits of $1.2 billion.
In the first nine months of 2026, total average deposits increased $2.5 billion from the first nine months of 2025. Average core deposits increased $5.3 billion reflecting growth in average savings and interest-checking deposits from commercial customers and the redesignation of certain deposit arrangements in the second quarter of 2026. Partially offsetting that increase was lower average noninterest-bearing deposits predominantly from commercial customers.
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The accompanying table summarizes the components of average total deposits by reportable segment for the three months ended September 30, 2026 and June 30, 2026 and the nine months ended September 30, 2026 and 2025.
AVERAGE DEPOSITS BY REPORTABLE SEGMENT
(Dollars in millions) Commercial Bank Retail Bank Institutional Services and Wealth Management All Other Total
Three Months Ended September 30, 2026
Noninterest-bearing deposits $ 9,564 $ 24,997 $ 8,259 $ 888 $ 43,708
Savings and interest-checking deposits 40,007 52,992 9,877 5,137 108,013
Time deposits 524 12,345 58 2,129 15,056
Total $ 50,095 $ 90,334 $ 18,194 $ 8,154 $ 166,777
Three Months Ended June 30, 2026
Noninterest-bearing deposits $ 9,727 $ 24,843 $ 8,766 $ 628 $ 43,964
Savings and interest-checking deposits 38,587 52,402 9,882 4,881 105,752
Time deposits 330 12,444 57 977 13,808
Total $ 48,644 $ 89,689 $ 18,705 $ 6,486 $ 163,524
Nine Months Ended September 30, 2026
Noninterest-bearing deposits $ 9,818 $ 24,699 $ 8,843 $ 710 $ 44,070
Savings and interest-checking deposits 39,179 52,525 9,953 5,126 106,783
Time deposits 384 12,403 55 1,140 13,982
Total $ 49,381 $ 89,627 $ 18,851 $ 6,976 $ 164,835
Nine Months Ended September 30, 2025
Noninterest-bearing deposits $ 10,970 $ 24,342 $ 9,001 $ 564 $ 44,877
Savings and interest-checking deposits 34,508 52,488 9,717 6,665 103,378
Time deposits 330 13,079 37 610 14,056
Total $ 45,808 $ 89,909 $ 18,755 $ 7,839 $ 162,311
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Funding activities - borrowings
The following table summarizes the average balances utilized from the Company's short-term and long-term borrowing facilities and note programs.
AVERAGE BORROWINGS
Three Months Ended Nine Months Ended
(Dollars in millions) September 30,
2026 		June 30,
2026 		September 30,
2026 		September 30,
2025
Short-term borrowings:
Federal funds purchased and repurchase agreements $ 560 $ 470 $ 413 $ 122
FHLB advances 4,688 7,546 5,905 2,891
Total short-term borrowings 5,248 8,016 6,318 3,013
Long-term borrowings:
Senior notes 8,731 8,427 8,235 8,515
FHLB advances 2 3 3 224
Subordinated notes 1,746 1,641 1,547 672
Junior subordinated debentures 404 403 403 404
Asset-backed notes 3,084 2,294 2,419 1,850
Other 10 10 10 10
Total long-term borrowings 13,977 12,778 12,617 11,675
Total borrowings $ 19,225 $ 20,794 $ 18,935 $ 14,688
The Company uses borrowing capacity from banks, the FHLBs, the FRB of New York and others as sources of funding. Short-term borrowings represent arrangements that at the time they were entered into had a contractual maturity of one year or less. The levels of short-term borrowings in the third quarter of 2026 as compared with the second quarter of 2026, as well as for the nine months ended September 30, 2026 as compared with the similar 2025 period reflect the Company's management of liquidity.
The levels of long-term borrowings reflect the Company's strategies to maintain diversified wholesale funding sources and provide long-term funding stabilization. The following table provides a summary of the Company's issuances, maturities and redemptions of long-term borrowings in the recent quarter as well as for the nine months ended September 30, 2026.
LONG-TERM BORROWING ISSUANCES, MATURITIES AND REDEMPTIONS
(Dollars in millions) Three Months Ended September 30, 2026 Nine Months Ended September 30, 2026
Issuances (a):
Senior notes of M&T Bank $ - $ 1,200
Subordinated notes of M&T - 500
Asset-backed notes 627 2,144
Maturities/Redemptions (b):
__________________________________________________________________________________
(a)At par value.
(b)Excludes paydowns of asset-backed notes. There were no significant maturities or redemptions of long-term borrowings in the first nine months of 2026.
Additional information regarding borrowings is provided in notes 5 and 12 of Notes to Financial Statements.
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Provision for Credit Losses
A provision for credit losses is recorded to adjust the level of the allowance to reflect expected credit losses that are based on economic forecasts as of each reporting date. A provision for credit losses of $135 million was recorded in the third quarter of 2026, compared with $120 million in the second quarter of 2026. A $5 million provision for unfunded credit commitments was recorded in the third quarter of 2026. There was no provision for unfunded credit commitments in the second quarter of 2026. The higher provision for credit losses in the third quarter of 2026 as compared with the second quarter of 2026 reflects loan growth. For the nine months ended September 30, 2026 and 2025, the Company recorded a provision for credit losses of $395 million and $380 million, respectively.
A summary of the Company's net charge-offs by loan type and as an annualized percent of such average loans is presented in the table that follows.
NET CHARGE-OFF (RECOVERY) INFORMATION
Three Months Ended
September 30, 2026 June 30, 2026
(Dollars in millions) Net Charge-Offs (Recoveries) Annualized Percent of Average Loans Net Charge-Offs (Recoveries) Annualized Percent of Average Loans
Commercial and industrial $ 66 .40 % $ 20 .13 %
Real estate:
Commercial - - 6 .14
Residential builder and developer - - - -
Other commercial construction - - - -
Residential (1) -.01 - -
Consumer:
Home equity lines and loans (1) -.08 - -
Recreational finance 32 .85 26 .71
Automobile 5 .40 5 .36
Other 26 3.92 23 3.85
Total $ 127 .35 % $ 80 .23 %
Nine Months Ended
September 30, 2026 September 30, 2025
(Dollars in millions) Net Charge-Offs (Recoveries) Annualized Percent of Average Loans Net Charge-Offs (Recoveries) Annualized Percent of Average Loans
Commercial and industrial $ 111 .23 % $ 139 .30 %
Real estate:
Commercial 23 .15 57 .39
Residential builder and developer - - - -
Other commercial construction - - 6 .15
Residential (2) -.01 - -
Consumer:
Home equity lines and loans (1) -.02 (1) -.04
Recreational finance 92 .85 76 .76
Automobile 16 .42 16 .41
Other 73 3.86 75 4.53
Total $ 312 .30 % $ 368 .36 %
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Asset quality
A summary of nonperforming assets and certain past due loan data and credit quality ratios is presented in the accompanying table.
NONPERFORMING ASSET AND PAST DUE LOAN DATA
(Dollars in millions) September 30, 2026 June 30, 2026 December 31, 2025 September 30, 2025
Nonaccrual loans $ 1,298 $ 1,208 $ 1,252 $ 1,512
Real estate and other foreclosed assets 28 23 35 37
Total nonperforming assets $ 1,326 $ 1,231 $ 1,287 $ 1,549
Accruing loans past due 90 days or more $ 570 $ 603 $ 561 $ 432
Government-guaranteed loans included in totals above:
Nonaccrual loans 81 78 83 71
Accruing loans past due 90 days or more (a) 556 586 543 403
Loans 30-89 days past due 1,240 1,450 1,751 1,200
Nonaccrual loans as a percent of total loans .90 % .85 % .91 % 1.11 %
Nonperforming assets as a percent of total loans and
real estate and other foreclosed assets 		.92 .86 .93 1.13
Accruing loans past due 90 days or more as a percent of total loans .39 .42 .41 .32
Loans 30-89 days past due as a percent of total loans .86 1.02 1.27 .88
__________________________________________________________________________________
(a)Primarily residential real estate loans.
Nonaccrual loans at September 30, 2026 increased $90 million from June 30, 2026 reflecting a $47 million rise in commercial and industrial nonaccrual loans and a $41 million rise in commercial real estate nonaccrual loans. Nonaccrual loans declined $214 million from September 30, 2025, primarily driven by a $143 million reduction in commercial and industrial nonaccrual loans and an $89 million reduction in commercial real estate nonaccrual loans. Approximately 48% of nonaccrual commercial and industrial and commercial real estate loans were considered current with respect to their payment status at September 30, 2026.
Government-guaranteed loans designated as accruing loans past due 90 days or more included one-to-four family residential mortgage loans serviced by the Company that were repurchased to reduce associated servicing costs, including a requirement to advance principal and interest payments that had not been received from individual mortgagors. Despite the loans being purchased by the Company, the insurance or guarantee by the applicable government-related entity remains in force. The outstanding principal balances of the repurchased loans that are guaranteed by government-related entities included in accruing loans past due 90 days or more totaled $468 million at September 30, 2026, $489 million at June 30, 2026, $459 million at December 31, 2025 and $333 million at September 30, 2025. Accruing loans past due 90 days or more not guaranteed by government-related entities were loans considered to be with creditworthy borrowers that were in the process of collection or renewal. Additional information about past due and nonaccrual loans is included in note 4 of Notes to Financial Statements.
The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. Loans with a lower expectation of default are assigned one of ten possible "pass" loan grades while specific loans determined to have an elevated level of credit risk are designated as "criticized." A criticized loan may be designated as "nonaccrual" if the Company no longer expects to collect all amounts owed under the terms of the loan agreement or the loan is delinquent 90 days or more. Targeted reviews are periodically performed over segments of loan portfolios that may be experiencing heightened credit risk due to current or anticipated economic conditions. The intention of such reviews is to identify trends across such portfolios and inform portfolio risk limits and loss mitigation strategies. In the recent quarter, the Company continued to monitor commercial borrowers in certain industry sectors that may be affected by rising interest rates, higher energy and transportation costs and international trade policy changes, such as tariffs, including retail and wholesale trade, manufacturing, food service and packaging companies. The Company has considered the information gathered in such reviews in the assignment of loan grades.
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The Company continues to monitor its commercial real estate loan portfolio. The primary source of repayment of these loans is typically tenant lease payments to the investor/borrower. Elevated vacancies impacting some property types have contributed to lower current and anticipated future debt service coverage ratios, which have and may continue to influence the ability of borrowers to make existing loan payments. Lower debt service coverage ratios, reduced commercial real estate values and potentially higher interest rates could also impact the ability of borrowers to refinance their obligations at loan maturity. The Company actively monitors interest rate-sensitive borrowers to reassess loan grades. The LTV ratio is one of many factors considered in assessing overall portfolio risks and loss mitigation strategies for the investor-owned commercial real estate portfolio. In determining the LTV ratio, the Company considers cross-collateralization of all exposures secured by the supporting collateral and the estimated value of such collateral. Subsequent to the origination of commercial real estate loans, updated appraisals are obtained in the normal course of business for renewals, extensions and modifications to commitment levels. As the quality of a loan deteriorates to the point of designating the loan as "criticized nonaccrual," the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in values as determined by line of business and/or loan workout personnel. Those adjustments are reviewed and assessed for reasonableness by the Company's credit risk personnel. Accordingly, for real estate collateral securing larger nonaccrual commercial and industrial loans and commercial real estate loans, estimated collateral values are generally based on current estimates of value.
The Company monitors its concentration of commercial real estate lending as a percent of its Tier 1 capital plus its allowable allowance for credit losses, consistent with a metric utilized to differentiate such concentrations amongst regulated financial institutions. This metric, as prescribed in supervisory guidance, excludes loans secured by commercial real estate considered to be owner-occupied, but includes certain other loans, such as loans to real estate investment trusts, that are classified as commercial and industrial loans. The Company's commercial real estate loan concentration approximated 137% of Tier 1 capital plus its allowable allowance for credit losses at September 30, 2026, compared with 134% at June 30, 2026, 124% at December 31, 2025 and 128% at September 30, 2025.
The accompanying tables summarize the outstanding balances, and associated criticized balances, of commercial and industrial loans by industry and commercial real estate loans by property type, respectively, at September 30, 2026 and December 31, 2025.
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CRITICIZED COMMERCIAL AND INDUSTRIAL LOANS
September 30, 2026 December 31, 2025
(Dollars in millions) Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized
Commercial and industrial excluding
owner-occupied real estate by industry:
Financial and insurance $ 13,731 $ 257 $ 7 $ 264 $ 12,749 $ 200 $ 4 $ 204
Services 8,719 259 49 308 7,887 271 74 345
Motor vehicle and recreational
finance dealers 		6,706 392 1 393 7,185 541 10 551
Manufacturing 6,311 407 79 486 6,094 344 52 396
Wholesale 4,473 200 43 243 4,373 276 57 333
Transportation, communications,
utilities 		4,456 167 56 223 3,883 196 51 247
Retail 3,347 310 85 395 3,087 213 25 238
Construction 2,412 199 35 234 2,260 211 39 250
Health services 1,811 50 20 70 1,816 56 35 91
Real estate investors 1,589 165 4 169 1,574 202 6 208
Other 1,370 108 75 183 1,300 110 41 151
Total commercial and industrial
excluding owner-occupied real estate 		54,925 2,514 454 2,968 52,208 2,620 394 3,014
Owner-occupied real estate by industry:
Services 2,351 58 73 131 2,368 84 32 116
Motor vehicle and recreational
finance dealers 		2,263 135 - 135 2,234 164 1 165
Retail 1,929 74 14 88 1,893 24 15 39
Health services 1,413 42 18 60 1,268 122 47 169
Wholesale 1,079 25 20 45 978 95 3 98
Manufacturing 735 45 9 54 791 79 12 91
Real estate investors 585 40 12 52 616 31 8 39
Other 1,093 51 17 68 1,050 58 15 73
Total owner-occupied real estate 11,448 470 163 633 11,198 657 133 790
Total commercial and industrial $ 66,373 $ 2,984 $ 617 $ 3,601 $ 63,406 $ 3,277 $ 527 $ 3,804
Criticized loans as a percent of total commercial and industrial loans 5.4 % 6.0 %
CRITICIZED COMMERCIAL REAL ESTATE LOANS
September 30, 2026 December 31, 2025
(Dollars in millions) Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized Outstanding Criticized Accrual Criticized Nonaccrual Total Criticized
Permanent finance by property type:
Apartments/Multifamily $ 7,320 $ 268 $ 26 $ 294 $ 6,353 $ 431 $ 45 $ 476
Retail/Service 4,313 394 43 437 4,164 546 70 616
Industrial/Warehouse 3,510 142 - 142 2,297 77 8 85
Office 3,066 548 151 699 3,423 644 121 765
Health services 1,841 88 20 108 1,548 150 56 206
Hotel 1,728 170 17 187 1,743 173 19 192
Other 443 20 1 21 180 20 1 21
Total permanent 22,221 1,630 258 1,888 19,708 2,041 320 2,361
Construction/Development 3,340 573 35 608 3,627 1,080 13 1,093
Total commercial real estate $ 25,561 $ 2,203 $ 293 $ 2,496 $ 23,335 $ 3,121 $ 333 $ 3,454
Criticized loans as a percent of total commercial real estate loans 9.8 % 14.8 %
Commercial real estate loans weighted-average LTV ratio 55 56
Commercial real estate criticized loans weighted-average LTV ratio 63 67
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The $203 million reduction in commercial and industrial criticized loans from December 31, 2025 to September 30, 2026 reflects lower criticized loans to motor vehicle and recreational finance dealers, wholesale and health services industries, partially offset by higher criticized loans predominantly to borrowers in the retail and financial and insurance industries. The $958 million decline in commercial real estate criticized loans from December 31, 2025 to September 30, 2026 reflects a $485 million decline in construction and development loans designated as criticized and a $473 million decline in criticized permanent loans secured by most property types. At September 30, 2026, approximately 97% of criticized accrual loans and 48% of criticized nonaccrual loans were considered current with respect to their payment status.
For loans secured by residential real estate the Company's loss identification and estimation techniques make reference to loan performance and house price data in specific areas of the country where collateral securing those loans is located. For loans secured by residential real estate, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. Information about the location of nonaccrual loans secured by residential real estate at September 30, 2026 and December 31, 2025 is presented in the following table.
NONACCRUAL LOANS SECURED BY RESIDENTIAL REAL ESTATE
September 30, 2026 December 31, 2025
Nonaccrual Nonaccrual
(Dollars in millions) Outstanding Balances Balances Percent of Outstanding Balances Outstanding Balances Balances Percent of Outstanding Balances
Residential mortgage loans (a):
New York $ 6,669 $ 106 1.58 % $ 6,751 $ 109 1.62 %
Mid-Atlantic 8,206 79 .97 7,721 86 1.11
New England 6,877 45 .66 6,529 39 .60
Other 3,549 33 .92 3,432 30 .89
Total $ 25,301 $ 263 1.04 % $ 24,433 $ 264 1.08 %
First lien home equity loans and lines of credit:
New York $ 745 $ 13 1.72 % $ 740 $ 14 1.96 %
Mid-Atlantic 876 14 1.63 875 17 1.92
New England 449 4 .91 426 4 .95
Other 19 1 1.81 20 3 13.94
Total $ 2,089 $ 32 1.51 % $ 2,061 $ 38 1.85 %
Junior lien home equity loans and lines of credit:
New York $ 967 $ 19 2.00 % $ 920 $ 19 2.03 %
Mid-Atlantic 1,183 18 1.55 1,120 19 1.70
New England 723 7 .89 675 6 .88
Other 29 - - 31 - -
Total $ 2,902 $ 44 1.53 % $ 2,746 $ 44 1.60 %
__________________________________________________________________________________
(a)Includes $598 million and $673 million of limited documentation first lien mortgage loans with nonaccrual loan balances totaling $39 million and $50 million at September 30, 2026 and December 31, 2025, respectively.
Factors that influence the Company's credit loss experience include overall economic conditions affecting businesses and consumers, generally, but also residential and commercial real estate valuations, in particular, given the size of the Company's real estate loan portfolios. Commercial real estate valuations can be highly subjective, as they are based upon many assumptions. Such valuations can be significantly affected over relatively short periods of time by changes in business climate, economic conditions, interest rates and, in many cases, the results of operations of businesses and other occupants of the real property. Similarly, residential real estate valuations can be impacted by housing trends, the availability of financing at reasonable interest rates and general economic conditions affecting consumers.
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Consumer loans not secured by residential real estate are generally charged-off when the loans are 91 to 180 days past due, depending on whether the loan is collateralized and the status of repossession activities with respect to such collateral. The Company primarily originates recreational finance loans and automobile loans indirectly through dealerships across the U.S. At September 30, 2026, the percent of recreational finance loans and automobile loans with FICO scores of 700 or greater at origination date was 99% and 84%, respectively. A comparative summary of nonaccrual consumer loan balances and the respective percent of outstanding balances of each consumer loan product at September 30, 2026 and December 31, 2025 is presented in the following table.
NONACCRUAL CONSUMER LOANS
September 30, 2026 December 31, 2025
(Dollars in millions) Nonaccrual Loans Percent of Outstanding Balances Nonaccrual Loans Percent of Outstanding Balances
Home equity lines and loans $ 76 1.52 % $ 82 1.71 %
Recreational finance 34 .23 30 .21
Automobile 10 .20 11 .21
Other 5 .20 5 .19
Total $ 125 .45 % $ 128 .48 %
Allowance for loan losses
Management determines the allowance for loan losses under accounting guidance that requires estimating the amount of current expected credit losses over the remaining contractual term of the loan portfolio. A description of the methodologies used by the Company to estimate its allowance for loan losses can be found in note 4 of Notes to Financial Statements.
At the time of the Company's analysis regarding the determination of the allowance for loan losses as of September 30, 2026 uncertainties existed about the impact of inflationary pressures, rising interest rates and potential increases in unemployment on the discretionary income and purchasing power of consumers, which could impact their ability to service existing debt obligations; the volatile nature of global markets and international economic conditions that could impact the U.S. economy, including the effect of international trade policies and recent military conflicts on domestic businesses and consumers; uncertainty related to Federal Reserve positioning of monetary policy and the potential impacts on future economic growth; potential shifts in the labor market resulting from rapid development and deployment of generative and agentic artificial intelligence; downward pressures on commercial real estate values, including office properties, and the impacts on the ability of commercial borrowers to refinance maturing debt obligations at potentially higher interest rates; and the extent to which borrowers may be negatively affected by general economic conditions.
In establishing the allowance for loan losses, the Company estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes and also estimates losses for other loans with similar risk characteristics on a collective basis, generally through the use of statistically developed credit models, which are required to achieve a satisfactory independent validation by the Company's Model Risk Management Department, or other quantitative methodologies. In determining the allowance for loan losses, the Company may adjust forecasted loss estimates for inherent limitations or biases in the models as well as for other factors that may not be adequately considered in its quantitative methodologies including the impact of portfolio concentrations, imprecision in economic forecasts, geopolitical conditions and other risk factors that influence the loss estimation process. At each of September 30, 2026, June 30, 2026 and December 31, 2025, the Company qualitatively adjusted credit loss estimates for inherent limitations in the ability to assess real-time changes in commercial borrower performance and for environmental influences affecting certain loan portfolios. Qualitative adjustments at September 30, 2026, June 30, 2026 and December 31, 2025, primarily related to portfolio exposures to certain commercial and industrial borrowers, commercial real estate loans and consumer loans, were generally similar. Such qualitative adjustments at March 31, 2026 were elevated reflective of the potential negative impact of global conflicts on economic forecasts utilized at that date.
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Forward-looking estimates of certain macroeconomic variables are determined by the M&T Scenario Review Committee, which is comprised of senior management business leaders and economists. The weighted-average of macroeconomic assumptions utilized as of September 30, 2026, June 30, 2026 and December 31, 2025 are presented in the following table and were based on information available at or near the time the Company was preparing its estimate of expected credit losses as of those dates.
ALLOWANCE FOR LOAN LOSSES MACROECONOMIC ASSUMPTIONS
September 30, 2026 June 30, 2026 December 31, 2025
Year 1 Year 2 Cumulative Year 1 Year 2 Cumulative Year 1 Year 2 Cumulative
National unemployment rate 4.8 % 5.2 % 4.8 % 5.1 % 5.0 % 5.2 %
Real GDP growth rate 1.2 2.1 3.3 % 1.3 1.9 3.2 % 1.6 1.8 3.4 %
Commercial real estate price
index growth/decline rate 		.8 1.1 2.2 -.6 1.7 1.3 -2.8 1.0 -1.6
Home price index growth rate .2 3.0 3.2 .2 3.0 3.2 .2 2.7 2.9
With respect to economic forecasts, the Company assessed the likelihood of alternative economic scenarios during the two-year reasonable and supportable forecast period. Generally, an increase in unemployment rate or a decrease in any of the rate of change in GDP, commercial real estate prices or home prices could have an adverse impact on expected credit losses and may result in an increase to the allowance for loan losses. Forward-looking economic forecasts are subject to inherent imprecision and future outcomes may differ materially from forecasted events. In consideration of such uncertainty, the alternative economic scenarios shown in the following table were considered to estimate the possible impact on modeled credit losses.
ALLOWANCE FOR LOAN LOSSES SENSITIVITIES
September 30, 2026 Year 1 Year 2 Cumulative
Potential downside economic scenario:
National unemployment rate 6.9 % 8.1 %
Real GDP growth/decline rate -2.5 1.5 -1.0 %
Commercial real estate price index decline rate -11.6 -6.2 -17.1
Home price index growth/decline rate -9.2 2.9 -6.6
Potential upside economic scenario:
National unemployment rate 3.8 3.8
Real GDP growth rate 3.2 2.5 5.7
Commercial real estate price index growth rate 6.0 4.4 10.6
Home price index growth rate 4.8 4.9 10.0
(Dollars in millions) Impact to Modeled Credit Losses
Increase (Decrease)
Potential downside economic scenario $ 233
Potential upside economic scenario (103)
These examples are only a few of the numerous possible economic scenarios that could be utilized in assessing the sensitivity of expected credit losses. The estimated impacts on credit losses in such scenarios pertain only to modeled credit losses and do not include consideration of other factors the Company may evaluate when determining its allowance for loan losses. As a result, it is possible that the Company may, at another point in time, reach different conclusions regarding credit loss estimates. The Company's process for determining the allowance for loan losses undergoes quarterly and periodic evaluations by independent risk management personnel, which among many other considerations, evaluate the reasonableness of management's methodology and significant assumptions.
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A comparative summary of the Company's allowance for loan losses by loan type and the reserve for unfunded credit commitments is presented in the following table.
ALLOWANCE FOR LOAN LOSSES AND RESERVE FOR UNFUNDED CREDIT COMMITMENTS
(Dollars in millions) September 30, 2026 June 30, 2026 December 31, 2025
Allowance for loan losses:
Commercial and industrial $ 842 $ 832 $ 771
Real estate - commercial (a) 383 408 472
Real estate - residential 98 100 100
Consumer 856 836 773
Total $ 2,179 $ 2,176 $ 2,116
Allowance for loan losses as a percent of loans:
Commercial and industrial 1.27 % 1.26 % 1.22 %
Real estate - commercial (a) 1.50 1.68 2.02
Real estate - residential .39 .40 .41
Consumer 3.11 3.08 2.92
Total 1.51 1.53 1.54
Allowance for loan losses as a percent of total nonaccrual loans (b) 168 180 169
Reserve for unfunded credit commitments (c) $ 93 $ 95 $ 80
__________________________________________________________________________________
(a)Included in the allowance for loan losses were reserves allocated as a percent of commercial real estate loans secured by office properties of 3.98% at September 30, 2026, 3.91% at June 30, 2026 and 4.65% at December 31, 2025.
(b)Given the Company's general position as a secured lender and its practice of charging off loan balances when collection is deemed doubtful, this ratio and changes in the ratio are generally not an indicative measure of the adequacy of the Company's allowance for loan losses, nor does management rely upon this ratio in assessing the adequacy of the Company's allowance for loan losses.
(c)Included in Accrued interest and other liabilities in the Consolidated Balance Sheet.
Management has assessed that the allowance for loan losses at September 30, 2026 appropriately reflected expected credit losses in the portfolio as of that date. The lower ratio of the allowance for loan losses as a percent of total loans outstanding at September 30, 2026 and June 30, 2026 as compared with December 31, 2025 reflects lower levels of criticized commercial and industrial loans and commercial real estate loans, partially offset by loan growth. The level of the allowance reflects management's evaluation of the loan portfolio as of each respective date using the methodology and considering the factors as described herein. Should the various economic forecasts and credit factors considered by management in establishing the allowance for loan losses change and should management's assessment of losses in the loan portfolio also change, the level of the allowance as a percent of loans could increase or decrease in future periods.
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Other Income
As reported on M&T's Form 8-K filed on September 28, 2026, effective for the third quarter of 2026, M&T made certain changes and reclassifications to other income categories presented in its Consolidated Statement of Income. All periods presented herein reflect these changes.
The components of other income are presented in the accompanying table.
OTHER INCOME
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Trust and investment services income $ 230 $ 235 $ (5) -2 % $ 684 $ 643 $ 41 7 %
Mortgage banking revenues 152 127 25 19 406 395 11 3
Service charges on deposit accounts 109 107 2 1 322 307 15 5
Card revenues 90 89 1 2 257 257 - -
Letter of credit and credit-related fees 46 44 2 4 132 132 - -
Capital markets and advisory revenues 32 41 (9) -24 109 89 20 23
Gain (loss) on bank investment securities (1) 2 (3) - 5 1 4 -
Other revenues from operations 85 95 (10) -12 257 222 35 16
Total other income $ 743 $ 740 $ 3 - % $ 2,172 $ 2,046 $ 126 6 %
Trust and investment services income
Trust and investment services income includes revenues from two significant businesses managed within the Company's Institutional Services and Wealth Management segment. The Institutional Services business provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients who: (i) use capital markets financing structures; (ii) use independent trustees to hold assets; and (iii) need investment and cash management services. The Wealth Management business offers personal trust, planning and advisory, fiduciary, asset management, family office and other services designed to help high net worth individuals and families grow, preserve and transfer wealth. Trust and investment services income also includes income from the sale of mutual funds and annuities, securities brokerage fees and select investment products of LPL Financial, an independent financial services broker.
TRUST AND INVESTMENT SERVICES INCOME AND ASSETS UNDER MANAGEMENT
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Trust and investment services income
Institutional Services $ 102 $ 104 $ (2) -2 % $ 302 $ 285 $ 17 6 %
Wealth Management 89 92 (3) -3 267 252 15 6
Commercial 1 1 - - 3 3 - -
Total trust income 192 197 (5) -3 572 540 32 6
Brokerage services income 38 38 - - 112 103 9 9
Total trust and investment services income $ 230 $ 235 $ (5) -2 % $ 684 $ 643 $ 41 7 %
(Dollars in millions) September 30,
2026 		June 30,
2026 		December 31, 2025 September 30,
2025
Assets under management at period end
Trust assets under management (excluding proprietary funds) (a) $ 83,380 $ 84,705 $ 68,104 $ 67,447
Proprietary mutual funds 15,227 15,216 16,075 15,833
Total assets under management $ 98,607 $ 99,921 $ 84,179 $ 83,280
__________________________________________________________________________________
(a)The increase in trust assets under management from December 31, 2025 to each of September 30, 2026 and June 30, 2026 predominantly reflects managed assets related to a single customer construction project.
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Trust and investment services income decreased $5 million in the recent quarter as compared with the second quarter of 2026 reflecting seasonal tax services fees earned by the Wealth Management business in the second quarter of 2026.
For the nine months ended September 30, 2026, trust and investment services income increased $41 million as compared with the similar 2025 period. Institutional Services trust income rose $17 million reflecting higher sales and fund management fees and Wealth Management trust income increased $15 million reflecting comparatively higher assets under management and favorable market performance associated with those assets. Brokerage service income increased $9 million reflecting higher managed and advisory fees.
Mortgage banking revenues
Mortgage banking revenues are comprised of both residential and commercial mortgage banking activities, which consist of realized gains and losses from sales of real estate loans and loan servicing rights, unrealized gains and losses on real estate loans held for sale and related commitments, real estate loan servicing fees, and other real estate loan related fees and income. The Company's involvement in commercial mortgage banking activities includes the origination, sales and servicing of loans under the multifamily loan programs of Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development.
RESIDENTIAL MORTGAGE BANKING ACTIVITIES
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Residential mortgage banking revenues
Gains on loans originated for sale $ 9 $ 7 $ 2 30 % $ 24 $ 23 $ 1 4 %
Loan servicing:
Loan servicing fees 33 33 - -1 98 105 (7) -7
Changes in fair value of mortgage loan
servicing right assets, net of hedging activities (a) 		(16) (11) (5) -37 (40) - (40) -
Loan sub-servicing and other fees 93 67 26 38 222 159 63 39
Total loan servicing 110 89 21 23 280 264 16 6
Total residential mortgage banking revenues $ 119 $ 96 $ 23 24 % $ 304 $ 287 $ 17 6 %
New commitments to originate loans for sale $ 377 $ 411 $ (34) -8 % $ 1,188 $ 1,019 $ 169 17 %
(Dollars in millions) September 30,
2026 		June 30,
2026 		December 31, 2025 September 30,
2025
Balances at period end
Loans held for sale $ 249 $ 256 $ 441 $ 327
Commitments to originate loans for sale 191 258 224 329
Commitments to sell loans 407 467 645 576
Capitalized mortgage loan servicing assets 572 540 287 305
Loans serviced for others 34,909 35,253 35,873 36,421
Loans sub-serviced for others (b) 179,605 183,599 156,938 161,785
Total loans serviced for others $ 214,514 $ 218,852 $ 192,811 $ 198,206
__________________________________________________________________________________
(a)Includes a $15 million and a $48 million reduction in fair value attributable to the realization of expected net servicing cash flows over time for the three-month and nine-month periods ended September 30, 2026, respectively.
(b)The contractual servicing rights associated with residential mortgage loans sub-serviced by the Company were primarily held by affiliates of BLG. Information about the Company's relationship with BLG and its affiliates is included in note 16 of Notes to Financial Statements.
Effective January 1, 2026, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value with changes in fair value reflected in mortgage banking revenues. As a result, fair value changes in the mortgage loan servicing right assets, inclusive of the realization of expected net servicing revenues over time, are included in mortgage banking revenues. On December 31, 2025, the Company began economically hedging the risk of fair value changes in these assets through the use of various interest rate and other derivative contracts, for which changes in fair value are also reflected in mortgage banking revenues.
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In June 2026, the Company began sub-servicing $62.9 billion of additional residential mortgage loans with contractual servicing rights held by Bayview Financial. In March 2026, servicing functions for $30.1 billion of residential mortgage loans were returned to Bayview Financial as contractual holder of those servicing rights.
The higher residential mortgage banking revenues for the three and nine months ended September 30, 2026 as compared with the three months ended June 30, 2026 and nine months ended September 30, 2025, respectively, reflect increased sub-servicing revenues from the net addition of sub-serviced loans. Partially offsetting the increase in residential mortgage banking revenues in the first three quarters of 2026 as compared with the similar 2025 period was the impact of the Company's accounting election described herein.
COMMERCIAL MORTGAGE BANKING ACTIVITIES
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Commercial mortgage banking revenues
Gains on loans originated for sale $ 13 $ 13 $ - - % $ 44 $ 50 $ (6) -12 %
Loan servicing fees and other 20 18 2 9 58 58 - -
Total commercial mortgage banking revenues $ 33 $ 31 $ 2 5 % $ 102 $ 108 $ (6) -6 %
Loans originated for sale to other investors $ 737 $ 746 $ (9) -1 % $ 2,618 $ 3,138 $ (520) -17 %
(Dollars in millions) September 30,
2026 		June 30,
2026 		December 31, 2025 September 30,
2025
Balances at period end
Loans held for sale $ 263 $ 259 $ 484 $ 278
Commitments to originate loans for sale 559 485 773 1,074
Commitments to sell loans 826 740 1,253 1,292
Capitalized mortgage loan servicing assets 132 136 132 123
Loans serviced for others (a) 31,204 31,368 30,309 28,957
Loans sub-serviced for others 4,013 4,072 4,231 4,297
Total loans serviced for others $ 35,217 $ 35,440 $ 34,540 $ 33,254
__________________________________________________________________________________
(a)Includes $4.6 billion at each of September 30, 2026 and December 31, 2025, $4.7 billion at June 30, 2026 and $4.4 billion at September 30, 2025 of loan balances for which investors had recourse to the Company if such balances are ultimately uncollectable.
The decline in gains on commercial mortgage loans originated for sale in the first nine months of 2026 as compared with the first nine months of 2025 reflects decreased volume of new commitments to originate commercial real estate loans for sale.
Service charges on deposit accounts
Service charges on deposit accounts for the first nine months of 2026 increased $15 million as compared with the first nine months of 2025 reflecting higher commercial service charges that resulted from pricing changes and increased customer usage of sweep products and higher consumer service charges.
Capital markets and advisory revenues
Capital markets and advisory revenues includes loan syndication fees, underwriting and advisory revenues along with fees related to interest rate swap agreements and foreign exchange contracts. The Company enters into interest rate swap agreements and foreign exchange contracts with customers who need such services and concomitantly enters into offsetting trading positions with third parties to minimize the risks involved with these types of transactions. Information about the notional amount of interest rate, foreign exchange and other non-hedging contracts entered into by the Company is included in note 11 of Notes to Financial Statements and herein under the heading "Market Risk and Interest Rate Sensitivity." As compared with the second quarter of 2026, capital markets and advisory revenues decreased $9 million reflecting a decline in loan syndication fees and lower revenues from interest rate swap transactions with commercial customers in the recent quarter. For the first nine months of 2026, capital markets and advisory revenues increased $20 million reflecting higher revenues from interest rate swap transactions with commercial customers.
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Other revenues from operations
The components of other revenues from operations are presented in the accompanying table.
OTHER REVENUES FROM OPERATIONS
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Bank owned life insurance revenue $ 17 $ 20 $ (3) -12 % $ 55 $ 56 $ (1) -2 %
Equipment operating lease income 12 11 1 4 34 37 (3) -9
BLG income (a) 31 47 (16) -34 111 20 91 455
Earnout payment related to 2023 sale of CIT
business 		- - - - - 28 (28) -100
Gains on sales of out-of-footprint loan portfolio - - - - - 15 (15) -100
Gain on sale of institutional services subsidiary - - - - - 10 (10) -100
Other 25 17 8 47 57 56 1 2
Total other revenues from operations $ 85 $ 95 $ (10) -12 % $ 257 $ 222 $ 35 16 %
__________________________________________________________________________________
(a)During 2017, the operating losses of BLG resulted in M&T reducing the carrying value of its investment in BLG to zero. Subsequently, M&T has received cash distributions from BLG each year that resulted in the recognition of income by M&T. M&T expects cash distributions from BLG in the future, but the timing and amount of those distributions are not within M&T's control. BLG is entitled to receive distributions from its affiliates that provide asset management and other services that are available for distribution to M&T. Information about the Company's relationship with BLG and its affiliates is included in note 16 of Notes to Financial Statements.
Other revenues from operations decreased $10 million in the third quarter of 2026 as compared with the second quarter of 2026 reflecting a lower distribution from M&T's investment in BLG.
Higher other revenues from operations in the first nine months of 2026 as compared with the first nine months of 2025 reflected $91 million of higher distributions received from M&T's investment in BLG in the first nine months of 2026, partially offset by a distribution of an earnout payment of $28 million related to the Company's 2023 sale of its CIT business, gains on the sales of an out-of-footprint residential builder and developer loan portfolio of $15 million, a $12 million gain on the sale of equipment leases and a $10 million gain on the sale of a subsidiary that specialized in institutional services all of which occurred in the first nine months of 2025.
Other Expense
The components of other expense are presented in the accompanying table.
OTHER EXPENSE
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30,
2026 		Amount % September 30,
2026 		September 30,
2025 		Amount %
Salaries and employee benefits $ 832 $ 826 $ 6 1 % $ 2,572 $ 2,533 $ 39 2 %
Outside data processing and software 173 154 19 12 471 412 59 14
Equipment and net occupancy 131 129 2 - 393 391 2 -
Professional and other services 97 89 8 10 279 251 28 12
FDIC assessments 19 18 1 15 60 58 2 4
Advertising and marketing 29 27 2 7 77 70 7 9
Amortization of core deposit and other
intangible assets 		7 7 - - 23 32 (9) -27
Other costs of operations 105 99 6 6 305 367 (62) -17
Total other expense $ 1,393 $ 1,349 $ 44 3 % $ 4,180 $ 4,114 $ 66 2 %
Average full-time equivalent employees 21,579 21,686 (107) - % 21,735 22,396 (661) -3 %
Full-time equivalent employees at period end 21,562 21,662 (100) - 21,562 22,383 (821) -4
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Salaries and employee benefits
Salaries and employee benefits expense increased $6 million in the recent quarter as compared with the second quarter of 2026 reflecting an additional working day in the recent quarter, partially offset by lower payroll-related taxes.
Salaries and employee benefits expense increased $39 million in the nine months ended September 30, 2026 as compared with the year-earlier period reflecting higher salaries expense from annual merit and other increases, commissions and incentive compensation. Employee benefits expenses reflected a rise in medical benefits expense and payroll-related taxes, partially offset by lower severance expense. Lower staffing levels partially offset increases in salaries and employee benefits expense.
Nonpersonnel expenses
Nonpersonnel expenses of $561 million in the recent quarter increased from $523 million in the second quarter of 2026 reflecting higher outside data processing and software expense driven by higher software maintenance and enhancements to the Company's technology infrastructure and an increase in professional and other services expense related to such enhancements and other enterprise initiatives.
Nonpersonnel expenses aggregated $1.61 billion and $1.58 billion in the nine months ended September 30, 2026 and 2025, respectively, reflecting a rise in outside data processing and software costs of $59 million associated with enhancements to the Company's technology infrastructure, and higher professional and other services expense of $28 million related to such enhancements and higher legal and review costs. Partially offsetting those increases was lower other costs of operations of $62 million driven by amortization associated with residential mortgage loan servicing right assets of $75 million in the first nine months of 2025, partially offset by higher costs associated with the Company's supplemental executive retirement savings plan in the first nine months of 2026 reflecting market performance.
Income Taxes
The Company's effective income tax rate was 23.1% for each of the third and second quarters of 2026 and the nine months ended September 30, 2026 and 2025. The Company's effective tax rate is affected by the level of income earned that is exempt from tax relative to the overall level of pre-tax income, the amount of income allocated to the various state and local jurisdictions where the Company operates, because tax rates differ among such jurisdictions, and the impact of any large discrete or infrequently occurring items. The Company's effective tax rate in future periods may also be affected by any change in income tax laws or regulations and interpretations of income tax regulations that differ from the Company's interpretations by any of the various tax authorities that may examine tax returns filed by M&T or any of its subsidiaries.
Liquidity Risk
As a financial intermediary, the Company is exposed to various risks, including liquidity and market risk. Liquidity refers to the Company's ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future obligations, including demands for loans and deposit withdrawals, funding operating costs and other corporate purposes. Liquidity risk arises whenever the cash flows associated with financial instruments included in assets and liabilities differ.
The most significant source of funding for the Company is core deposits, which are generated from a large base of consumer, corporate and institutional customers. That customer base has become more geographically diverse as a result of expansion of the Company's businesses over time. Nevertheless, the Company faces competition in offering products and services from a large array of financial market participants, including banks, thrifts, mutual funds, securities dealers and others. Core deposits totaled $156.5 billion at September 30, 2026, up from $153.3 billion at December 31, 2025. The higher level of core deposits at September 30, 2026 reflects an increase in savings and interest-checking deposits, inclusive of the redesignation of certain brokered deposit arrangements that totaled $4.0 billion at March 31, 2026 as core deposits consistent with regulatory presentation, partially offset by lower noninterest-bearing deposits.
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The Company supplements funding provided through core deposits with various short-term and long-term wholesale borrowings, including overnight federal funds purchases, repurchase agreements, advances from the FHLBs, brokered deposits and longer-term borrowings. M&T Bank has access to additional funding sources through secured borrowings from the FHLB of New York and the FRB of New York. M&T Bank is also a counterparty to the FRB of New York standing repurchase agreement facility, which allows it to enter into overnight repurchase transactions using eligible investment securities. At September 30, 2026 and December 31, 2025, long-term borrowings aggregated $13.6 billion and $10.9 billion, respectively, and short-term borrowings aggregated $6.4 billion and $2.1 billion, respectively. The balances of short-term borrowings generally reflect the Company's wholesale funding strategy and liquidity considerations at each of those dates. Information about the Company's borrowings is included in note 5 of Notes to Financial Statements.
The Company's wholesale funding sources include the placement of brokered deposits. Such deposits were comprised of savings and interest-checking and time deposit accounts that totaled 5% of the Company's total deposit base at September 30, 2026, compared with 7% at December 31, 2025. The lower level of brokered deposits reflects the redesignation of certain savings and interest-checking deposit arrangements as core deposits consistent with regulatory presentation, partially offset by higher brokered time deposits. The Company actively adjusts its wholesale funding sources in consideration of the competitive landscape for customer deposits and maintenance of its liquidity profile.
Total uninsured deposits were estimated to be $78.1 billion at September 30, 2026 and $78.9 billion at December 31, 2025. Approximately $10.8 billion and $9.0 billion of those uninsured deposits were collateralized by the Company at September 30, 2026 and December 31, 2025, respectively. The Company maintains available liquidity sources, which at September 30, 2026 represented approximately 121% of uninsured deposits that were not collateralized by the Company.
In addition to deposits and borrowings, other sources of liquidity include maturities and repayments of investment securities, loans and other earning assets, as well as cash generated from operations, such as fees collected for services. The Company also has the ability to securitize or sell certain financial assets, including various loan types, to provide other liquidity alternatives. U.S. Treasury and government-issued or guaranteed mortgage-backed securities comprised 95% of the Company's debt securities portfolio at September 30, 2026. The weighted-average durations of debt investment securities available for sale and held to maturity at September 30, 2026 were 3.6 years and 4.5 years, respectively.
The Company's ability to obtain funding from these sources could be negatively impacted should the Company experience a substantial deterioration in its financial condition or its debt ratings or should the availability of funding become restricted due to a disruption in the financial markets. The Company attempts to quantify such risks by conducting scenario analyses that estimate the liquidity impact resulting from a debt ratings downgrade and other market events. Such impact is estimated by attempting to measure the effect on available unsecured lines of credit, available capacity from secured borrowing sources and securitizable assets. On May 12, 2026, Fitch upgraded its ratings of M&T Bank's long-term deposits from A+ to AA- and short-term deposits from F1 to F1+.
The Company enters into contractual obligations in the normal course of business that require future cash payments. Such obligations include, among others, payments related to deposits, borrowings, leases and other contractual commitments. Off-balance sheet commitments to customers may impact liquidity, including commitments to extend credit, standby letters of credit, commercial letters of credit, financial guarantees and indemnification contracts and commitments to sell real estate loans. Because many of these commitments or contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. Further discussion of these commitments is provided in note 14 of Notes to Financial Statements.
M&T's primary source of funds to pay for operating expenses, shareholder dividends and treasury stock repurchases has historically been the receipt of dividends from its bank subsidiaries, which are subject to various regulatory limitations. Dividends from any bank subsidiary to M&T are limited by the amount of earnings of the subsidiary in the current year and the two preceding years. For purposes of that test, at September 30, 2026 approximately $1.7 billion was available for payment of dividends to M&T from bank subsidiaries. M&T may also obtain funding through long-term borrowings and the repayment of advances to subsidiaries. Further information about the long-
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term outstanding borrowings of M&T is provided in note 5 of Notes to Financial Statements. As a bank holding company, M&T is obligated to serve as a managerial and financial source of strength to its bank subsidiaries as described in Part I, Item 1, "Business" of M&T's 2025 Annual Report and may provide advances to those subsidiaries. As its ability to access the capital markets may be affected by market disruptions, M&T maintains sufficient resources at its parent company to satisfy projected cash outflows for an extended period without reliance on dividends from subsidiaries or external financing. As of September 30, 2026, M&T's parent company liquidity, inclusive of the projected repayment of notes receivable from bank subsidiaries, covered projected cash outflows for 27 months, including dividends on common and preferred stock, debt service and scheduled debt maturities.
The Company's Executive ALCO Committee closely monitors the Company's liquidity position on an ongoing basis for compliance with internal policies and regulatory expectations. As a Category IV institution, the Company adheres to enhanced liquidity standards which require the performance of internal liquidity stress testing. The stress testing is designed to ensure the Company has sufficient liquidity to withstand both institution-specific and market-wide stress scenarios. For each scenario, the Company applies liquidity stress which may include deposit run-off, increased draws on unfunded loan commitments, increased collateral need for margin calls, increased haircuts on investment security-based funding and reductions in unsecured and secured borrowing capacity. Stress scenarios are measured over various time frames ranging from overnight to twelve months. As required by regulation, the Company maintains a liquidity buffer comprised of cash and highly liquid unencumbered securities to cover a 30-day stress horizon. Liquidity stress events occurring over longer time horizons can be mitigated by the availability of secured funding sources at the FHLB of New York and FRB of New York. As described in Part I, Item 1, "Liquidity" of M&T's 2025 Annual Report, the Federal Reserve and other federal banking regulators established the LCR as a uniform measure to ensure banking organizations hold sufficient amounts of cash and unencumbered high-quality liquid assets to cover net cash outflows over a 30-day liquidity stress period. As a Category IV institution with less than a $50 billion balance of weighted short-term wholesale funding, M&T is not subject to the LCR. M&T, however, estimates that its LCR on September 30, 2026 was 107%, exceeding the regulatory minimum standards that would be applicable if it were a Category III institution subject to the Category III reduced LCR requirements.
The table that follows is a summary of the Company's available sources of liquidity as of September 30, 2026 and December 31, 2025.
AVAILABLE LIQUIDITY SOURCES
(Dollars in millions) September 30, 2026 December 31, 2025
Deposits at the FRB of New York $ 14,247 $ 16,966
Unused secured borrowing facilities:
FRB of New York 26,974 25,443
FHLB of New York 13,461 18,302
Unencumbered investment securities (after estimated haircuts) 27,150 27,241
Total $ 81,832 $ 87,952
Management continuously evaluates the use and mix of its various available funding alternatives, including short-term borrowings, issuances of long-term debt, the placement of brokered deposits and the securitization of certain loan products. Management does not anticipate engaging in any activities, either currently or in the long term, for which adequate funding would not be available and would therefore result in a significant strain on liquidity at either M&T or its subsidiary banks. In accordance with liquidity regulations, the Company maintains a contingency funding plan to facilitate on-going liquidity management in times of liquidity stress. The plan outlines various funding options available during a liquidity stress event and establishes a clear escalation protocol to be followed within the Company's Enterprise Risk Framework. The plan sets forth funding strategies and procedures that management can quickly leverage to assist in decision-making and specifies roles and responsibilities for departments impacted by a potential liquidity stress event.
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Market Risk and Interest Rate Sensitivity
Market risk is the risk of loss from adverse changes in the market prices and/or interest rates of the Company's financial instruments. A primary market risk the Company is exposed to is interest rate risk. Interest rate risk arises from the Company's core banking activities of lending and deposit-taking, because assets and liabilities reprice at different times and by different amounts as interest rates change. As a result, net interest income earned by the Company is subject to the effects of changing interest rates. The Company measures interest rate risk by calculating the variability of net interest income in future periods under various interest rate scenarios using projected balances for earning assets, interest-bearing liabilities and derivatives used to hedge interest rate risk. Management's philosophy toward interest rate risk management is to limit the variability of net interest income.
The Company's Executive ALCO Committee monitors the sensitivity of the Company's net interest income to changes in interest rates with the aid of a computer model that forecasts net interest income under different interest rate scenarios. In modeling changing interest rates, the Company considers different yield curve shapes that contemplate both parallel (that is, when interest rates at each point of the yield curve change by the same magnitude) and non-parallel (that is, allowing interest rates at points on the yield curve to change by different amounts) shifts in the yield curve. The Company also contemplates instantaneous and gradual shifts in the yield curve over the scenario time horizon. In utilizing the model, market-implied forward interest rates over the subsequent twelve months are generally used to determine a base interest rate scenario for the net interest income simulation. That calculated base net interest income is then compared with the income calculated under the varying interest rate scenarios. The model considers the impact of ongoing lending and deposit-gathering activities, as well as interrelationships in the magnitude and timing of the repricing of financial instruments, including the effect of changing interest rates on expected prepayments and maturities.
Management has taken actions to mitigate exposure to interest rate risk through the use of on- and off-balance sheet financial instruments and intends to do so in the future. Possible actions include, but are not limited to, changes in the pricing of loan and deposit products, modifying the composition of earning assets and interest-bearing liabilities, and adding to, modifying or terminating existing interest rate swap agreements or other financial instruments used for interest rate risk management purposes. At September 30, 2026, the aggregate notional amount of interest rate swap agreements entered into for interest rate risk management purposes that were currently in effect was $22.8 billion. In addition, the Company has entered into $10.0 billion of forward-starting interest rate swap agreements designated for hedging purposes. Information about interest rate swap agreements entered into for interest rate risk management purposes is included herein under the heading "Taxable-equivalent Net Interest Income" and in note 11 of Notes to Financial Statements.
The accompanying table as of September 30, 2026 and December 31, 2025 displays the estimated impact on projected net interest income in the base scenarios described above resulting from changes in market interest rates. The scenarios presented in the table below assume a gradual and parallel change in interest rates across repricing categories during the first modeling year.
SENSITIVITY OF NET INTEREST INCOME TO CHANGES IN INTEREST RATES
Calculated Percentage Change
in Projected Net Interest Income
September 30, 2026 December 31, 2025
Changes in interest rates
+200 basis points -1.27 % -.54 %
+100 basis points -.49 -.12
-100 basis points .46 .04
-200 basis points .66 -.27
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The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income. The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments, loan and deposit volumes, mix and pricing, and deposit maturities. Variations in amounts presented since December 31, 2025 reflect changes in the composition of the Company's earning assets and interest-bearing liabilities, as well as the level of market-implied forward interest rates and hedging actions taken by the Company. M&T's cumulative upward deposit pricing beta, which is the change in deposit pricing in response to a change in market interest rates, approximated 55% amidst a rising interest rate environment from the first quarter of 2022 through the second quarter of 2024. M&T's cumulative downward deposit pricing beta beginning in the third quarter of 2024 through the recent quarter, when the FOMC increased the target rate by 25 basis points in September, approximated 52%. The assumptions used in interest rate sensitivity modeling are inherently uncertain and, as a result, the Company cannot precisely predict the impact of changes in interest rates on net interest income. Actual results may differ significantly from those presented due to the timing, magnitude and frequency of changes in interest rates and changes in market conditions and interest rate differentials (spreads) between maturity/repricing categories, as well as any actions, such as those previously described, which management may take to counter such changes.
Management also uses an EVE model to supplement the modeling technique described above and provide a long-term interest rate risk metric. EVE is a point-in-time analysis of the economic sensitivity of existing assets, liabilities and off-balance sheet positions that incorporates all cash flows over their estimated remaining lives. The EVE reflects the present value of cash flows from existing assets, liabilities and off-balance sheet financial instruments, but does not incorporate any assumptions for future originations, renewals or issuances. Management measures the impact of changes in market values due to interest rates under a number of scenarios, including immediate shifts of the yield curve. The percentage impact to the EVE resulting from a 100 basis-point increase and a 100 basis-point decrease in market interest rates was -3.6% and 1.8%, respectively, at September 30, 2026, and -5.1% and 2.2%, respectively, at December 31, 2025. The reduced EVE sensitivity at September 30, 2026 reflects the incorporation of updated data into the EVE model and other refinements in the second quarter of 2026.
In addition to the effect of interest rates, changes in fair value of the Company's financial instruments can also result from a lack of trading activity for similar instruments in the financial markets. Information about the fair valuation of financial instruments is presented in note 13 of Notes to Financial Statements.
The Company enters into interest rate and foreign exchange contracts to meet the financial needs of customers that it includes in its consolidated financial statements as other non-hedging derivatives within other assets and other liabilities. Financial instruments utilized for such activities consist primarily of interest rate swap agreements and forward and futures contracts related to foreign currencies. The Company generally mitigates the interest rate and foreign currency risk associated with customer activities by entering into offsetting positions with third parties that are also included in other assets and other liabilities. The fair values of non-hedging derivative positions associated with interest rate contracts and foreign currency and other option and futures contracts are presented in note 11 of Notes to Financial Statements. As with any non-government guaranteed financial instrument, the Company is exposed to credit risk associated with counterparties to its non-hedging derivative activities. Although the notional amounts of these contracts are not recorded in the Consolidated Balance Sheet, the unsettled fair values of such financial instruments are recorded in the Consolidated Balance Sheet. The fair values of such non-hedging derivative assets and liabilities recognized in the Consolidated Balance Sheet were $384 million and $876 million, respectively, at September 30, 2026 and $190 million and $409 million, respectively, at December 31, 2025. The amounts recorded in the Consolidated Balance Sheet associated with the Company's non-hedging derivative activities at September 30, 2026 and December 31, 2025 predominantly reflect changes in values associated with interest rate swap agreements entered into with commercial customers and financial institutions that are not subject to periodic variation margin settlement payments. Given the Company's policies and positions, management believes that the potential loss exposure to the Company resulting from market risk associated with other non-hedging derivative activities was not material at September 30, 2026, however, as previously noted, the Company is exposed to credit risk associated with counterparties to such activities. Information about the Company's use of derivative financial instruments is included in note 11 of Notes to Financial Statements.
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Capital
The following table presents components related to shareholders' equity and dividends.
SHAREHOLDERS' EQUITY, DIVIDENDS AND SELECT RATIOS
(Dollars in millions, except per share) September 30, 2026 December 31, 2025 September 30, 2025
Preferred stock $ 3,017 $ 2,834 $ 2,394
Common shareholders' equity 25,142 26,343 26,334
Total shareholders' equity $ 28,159 $ 29,177 $ 28,728
Per share:
Common shareholders' equity $ 174.95 $ 173.49 $ 170.43
Tangible common shareholders' equity (a) 115.88 117.45 115.31
Ratios:
Total shareholders' equity to total assets 12.77 % 13.67 % 13.60 %
Common shareholders' equity to total assets 11.40 12.34 12.46
Tangible common shareholders' equity to tangible assets (a) 7.85 8.70 8.79
Cash dividends declared for quarter ended:
Common stock (b) $ 217 $ 230 $ 234
Common stock per share 1.50 1.50 1.50
Preferred stock (b) 42 39 36
__________________________________________________________________________________
(a)Reconciliations of total common shareholders' equity and tangible common equity and total assets and tangible assets as of each of those dates are presented in Table 2.
(b)Cash dividends on common stock were $660 million and $670 million and preferred stock dividends were $120 million and $107 million for the nine months ended September 30, 2026 and 2025, respectively.
On March 30, 2026, M&T's Board of Directors authorized a program under which $5.0 billion of common shares may be repurchased. That authorization replaced and terminated the previous authorized share repurchase program effective as of the same date. M&T repurchased 1.3 million and 2.1 million shares of its common stock at a total cost of $323 million and $465 million during the third and second quarters of 2026, respectively. During the first nine months of 2026 and 2025, M&T repurchased 8.9 million and 11.6 million shares of its common stock at a total cost of $2.0 billion and $2.2 billion, respectively. Discretion as to the amount and timing of authorized share repurchases in a given period has been delegated, through the authorization of the Board of Directors, to management and can be influenced by capital and liquidity requirements, including funding of future loan growth and other balance sheet management activities, as well as market and economic conditions. On February 1, 2026, M&T redeemed all 40,000 outstanding shares of its Perpetual Fixed Rate Reset Non-cumulative Preferred Stock, Series G, for $400 million. In July 2026, M&T issued 60,000 shares of Perpetual Fixed Rate Non-cumulative Preferred Stock, Series L, with a liquidation preference of $10,000 per share. On November 1, 2026, M&T redeemed all 50,000 outstanding shares of its Perpetual Fixed-to-Floating Rate Non-cumulative Preferred Stock, Series F, for $500 million.
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Shareholders' equity reflects accumulated other comprehensive income or loss, which includes the net after-tax impact of unrealized gains or losses on investment securities, gains or losses associated with interest rate swap agreements designated as cash flow hedges and adjustments to reflect the funded status of defined benefit pension and other postretirement plans. The components of accumulated other comprehensive income (loss) are presented in the following table.
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - NET OF INCOME TAX
(Dollars in millions, except per share) September 30, 2026 December 31, 2025 September 30, 2025
Investment securities unrealized gains (losses), net (a) $ (550) $ 155 $ 121
Cash flow hedge adjustments, net (b) (181) 67 68
Defined benefit plans adjustments, net (c) 58 61 93
Other (7) (6) (5)
Accumulated other comprehensive income (loss), net $ (680) $ 277 $ 277
Accumulated other comprehensive income (loss), net, per common share $ (4.73) $ 1.83 $ 1.80
__________________________________________________________________________________
(a)Refer to note 3 of Notes to Financial Statements.
(b)Refer to note 11 of Notes to Financial Statements.
(c)Refer to note 8 of Notes to Financial Statements.
M&T and its subsidiary banks are required to comply with applicable Capital Rules which prescribe minimum capital ratios. Capital Rules require buffers in addition to these minimum risk-based capital ratios. M&T is subject to an SCB requirement that is determined through the Federal Reserve's supervisory stress tests and M&T's bank subsidiaries are subject to a 2.5% capital conservation buffer requirement. The buffer requirement must be composed entirely of CET1 capital. In June 2026, the Federal Reserve released the results of its most recent supervisory stress tests, which would imply a reduction of M&T's SCB to the 2.5% minimum. In February 2026, however, the Federal Reserve announced that the previous SCB requirements would continue in effect through 2027. Accordingly, M&T's SCB remains 2.7%. The regulatory capital ratios of the Company and its bank subsidiaries, M&T Bank and Wilmington Trust, N.A., as of September 30, 2026 are presented in the accompanying table.
REGULATORY CAPITAL RATIOS
(Dollars in millions) Regulatory Minimum (a) M&T
(Consolidated) 		M&T
Bank 		Wilmington
Trust, N.A.
CET1 capital 4.50 % 10.16 % 11.68 % 282.28 %
Tier 1 capital 6.00 11.93 11.68 282.28
Total capital 8.00 13.93 13.67 282.43
Tier 1 leverage 4.00 9.66 9.45 87.15
RWA $ 170,582 $ 170,037 $ 244
__________________________________________________________________________________
(a)Exclusive of required buffers as applicable.
As a result of the accounting election on January 1, 2026 to prospectively measure residential mortgage loan servicing right assets at fair value, the Company recorded an increase in capitalized servicing assets included in accrued interest and other assets of $263 million and a corresponding after-tax increase to retained earnings of $197 million, representing an 8 basis-point increase to the CET1 capital ratio on the election date.
Capital Rules generally require the deduction of goodwill and core deposit and other intangible assets, net of applicable deferred taxes, from the calculation of capital in the determination of the minimum capital ratios. As a result of previous business acquisitions, the Company recorded goodwill of $8.5 billion and core deposit and other intangible assets of $41 million at September 30, 2026. Goodwill, as required by GAAP, is not amortized, but rather is tested for impairment at least annually at the business reporting unit level. The Company completed its annual goodwill impairment test in the fourth quarter of 2025 and concluded the amount of goodwill was not impaired at the testing date. The Company has not identified events or circumstances that would more likely than not reduce the fair value of a business reporting unit below its carrying amount at September 30, 2026. Should a business reporting unit with assigned goodwill experience declines in revenue, increased credit losses or expenses, or other adverse developments due to economic, regulatory, competition or other factors, that would be material to that reporting unit, an impairment of goodwill could occur in a future period that could be material to the Company's Consolidated
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Balance Sheet and its Consolidated Statement of Income. Although a goodwill impairment charge would not have a significant impact on the Company's regulatory tangible capital ratios, it would reduce the capacity of its bank subsidiary, M&T Bank, to dividend earnings to M&T. As described herein under the heading "Liquidity Risk," M&T's parent company liquidity at September 30, 2026, inclusive of the projected repayment of notes receivables from bank subsidiaries, covered projected cash outflows for 27 months, including dividends on common and preferred stock, debt service and scheduled debt maturities.
The Company is subject to the comprehensive regulatory framework applicable to bank and financial holding companies and their subsidiaries, which includes examinations by a number of regulators. Regulation of financial institutions such as M&T and its subsidiaries is intended primarily for the protection of depositors, the Deposit Insurance Fund of the FDIC and the banking and financial system as a whole, and generally is not intended for the protection of shareholders, investors or creditors other than insured depositors. Changes in laws, regulations and regulatory policies applicable to the Company's operations can increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive environment in which the Company operates, all of which could have a material effect on the business, financial condition or results of operations of the Company and on M&T's ability to pay dividends. For additional information concerning this comprehensive regulatory framework, refer to Part I, Item 1, "Supervision and Regulation of the Company" of M&T's 2025 Annual Report.
As described in Part I, Item 1, "Capital Requirements" of M&T's 2025 Annual Report, in July 2023 the federal banking agencies issued a notice of proposed rulemaking to modify the regulatory capital requirements applicable to large banking organizations with total assets exceeding $100 billion, like the Company. In March 2026, the federal banking agencies issued a reproposal of those requirements. Under the reproposed requirements, the Company would have the option of calculating its RWA using either a standardized approach or an ERBA. The reproposal would also require the Company to include certain components of accumulated other comprehensive income (loss) in its calculation of capital over a five-year transition period. Management continues to evaluate the impact of the reproposed rules on the regulatory capital requirements of M&T and its subsidiary banks. The Company estimates that its CET1 capital ratio of 10.19% at June 30, 2026 would have increased approximately 90 basis points under the standardized approach and an additional 10 to 20 basis points under the ERBA, excluding the impact of accumulated other comprehensive income (loss). At September 30, 2026, the inclusion of accumulated other comprehensive income (loss) components related to investment securities available for sale and defined benefit plan liability adjustments would have decreased the Company's CET1 capital ratio by 29 basis points.
Segment Information
Reportable segments have been determined based upon the Company's organizational structure which is primarily arranged around the delivery of products and services to similar customer types. Financial information about the Company's reportable segments is presented in note 15 of Notes to Financial Statements. The Company's reportable segments are Commercial Bank, Retail Bank and Institutional Services and Wealth Management. All other business activities that are not included in the three reportable segment results have been included in the "All Other" category.
As described in note 15 of Notes to Financial Statements, during the third quarter of 2026 the Company modified its internal management reporting structure to reflect certain organizational changes. Prior period segment information has been recast to conform to the current presentation.
NET INCOME (LOSS) BY REPORTABLE SEGMENT
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30, 2026 Amount % September 30,
2026 		September 30,
2025 		Amount %
Net income (loss)
Commercial Bank $ 231 $ 288 $ (57) -19 % $ 759 $ 696 $ 63 9 %
Retail Bank 372 363 9 3 1,081 1,105 (24) -2
Institutional Services and Wealth Management 115 120 (5) -5 347 391 (44) -11
All Other 57 47 10 20 70 (100) 170 -
Total net income $ 775 $ 818 $ (43) -5 % $ 2,257 $ 2,092 $ 165 8 %
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Commercial Bank
The Commercial Bank segment provides a wide range of credit products and banking services to middle-market and large commercial customers, mainly within the markets served by the Company. Services provided by this segment include commercial lending and leasing, credit facilities which are secured by various types of commercial real estate, letters of credit, deposit products and cash management services. Commercial real estate loans may be secured by multifamily residential buildings, hotels, office, retail and industrial space or other types of collateral. Activities of this segment include the origination, sales and servicing of commercial real estate loans through the Fannie Mae DUS program and other programs. Commercial real estate loans held for sale are included in this segment.
COMMERCIAL BANK SEGMENT FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30, 2026 Amount % September 30,
2026 		September 30,
2025 		Amount %
Income statement
Net interest income $ 539 $ 543 $ (4) -1 % $ 1,601 $ 1,554 $ 47 3 %
Noninterest income 197 199 (2) -1 593 602 (9) -1
Total revenue 736 742 (6) -1 2,194 2,156 38 2
Provision for credit losses 61 22 39 167 113 168 (55) -32
Noninterest expense 375 365 10 3 1,101 1,092 9 1
Income before taxes 300 355 (55) -15 980 896 84 9
Income tax expense 69 67 2 1 221 200 21 11
Net income $ 231 $ 288 $ (57) -19 % $ 759 $ 696 $ 63 9 %
Average balance sheet
Loans held for sale $ 416 $ 518 $ (102) -20 % $ 528 $ 550 $ (22) -4 %
Loans:
Commercial and industrial 57,690 57,739 (49) - 57,019 53,791 3,228 6
Real estate - commercial 23,057 21,495 1,562 7 21,965 23,111 (1,146) -5
Real estate - residential 408 402 6 2 403 419 (16) -4
Consumer 16 17 (1) -8 19 20 (1) -4
Total loans $ 81,171 $ 79,653 $ 1,518 2 % $ 79,406 $ 77,341 $ 2,065 3 %
Deposits:
Noninterest-bearing $ 9,564 $ 9,727 $ (163) -2 % $ 9,818 $ 10,970 $ (1,152) -10 %
Interest-bearing 40,531 38,917 1,614 4 39,563 34,838 4,725 14
Total deposits $ 50,095 $ 48,644 $ 1,451 3 % $ 49,381 $ 45,808 $ 3,573 8 %
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The Commercial Bank segment's net income in the third quarter of 2026 decreased $57 million from the second quarter of 2026.
•Net interest income decreased $4 million reflecting an 11 basis-point narrowing of the net interest margin on loans, partially offset by one additional calendar day in the recent quarter and higher average balances of loans and deposits of $1.5 billion each.
•The provision for credit losses increased $39 million reflecting higher net charge-offs of commercial and industrial loans.
•Noninterest income decreased $2 million reflecting lower capital market and advisory revenues, partially offset by higher card revenues and other revenues from operations.
•Noninterest expense increased $10 million driven by an increase in personnel-related expenses and higher outside data processing and software costs.
•Average loans rose $1.5 billion driven by higher average balances of permanent commercial real estate loans.
•Average deposits grew $1.5 billion reflecting higher average savings and interest-checking deposit balances.
Net income for the Commercial Bank segment increased $63 million in the first nine months of 2026 as compared with the similar 2025 period.
•Net interest income increased $47 million reflecting higher average deposits of $3.6 billion and higher average loans of $2.1 billion, partially offset by a 3 basis-point narrowing of the net interest margin on each of loans and deposits.
•Noninterest income decreased $9 million reflecting $15 million of gains on sales of an out-of-footprint residential builder and developer loan portfolio and a $12 million gain on the sale of equipment leases each in the first three quarters of 2025, partially offset by higher revenues from interest rate swap agreements with commercial customers and increased service charges on commercial deposit accounts in the nine months ended September 30, 2026.
•The provision for credit losses decreased $55 million reflecting lower net charge-offs of commercial and industrial loans and commercial real estate loans.
•Noninterest expense increased $9 million driven by an increase in centrally-allocated costs associated with technology, operations, risk management, finance, human resources and other support services provided to the Commercial Bank segment and a rise in outside data processing and software costs, partially offset by a decline in personnel expenses.
•Average loans increased $2.1 billion driven by higher average commercial and industrial loans reflecting growth that spanned most industry types, partially offset by lower average commercial real estate loan balances as the Company reduced its exposure to such loans designated as criticized.
•Average deposits grew $3.6 billion reflecting growth in average savings and interest-checking deposits, partially offset by lower average noninterest-bearing deposits.
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Retail Bank
The Retail Bank segment provides a wide range of services to consumers and small businesses through the Company's branch network and several other delivery channels such as digital banking, telephone banking and ATMs. The Company has domestic banking offices primarily in the Northeastern and Mid-Atlantic regions of the U.S. including the District of Columbia. The segment offers to its customers deposit products, including demand, savings and time accounts, and other services. Credit services offered by this segment include automobile and recreational finance loans (primarily originated indirectly through dealers), home equity loans and lines of credit, credit cards and other loan products. This segment also originates and services residential mortgage loans and either sells those loans in the secondary market to investors or retains them for investment purposes. Residential mortgage loans are also originated and serviced on behalf of the Institutional Services and Wealth Management segment. The Company periodically purchases the rights to service residential real estate loans that have been originated by other entities and also sub-services residential real estate loans for others. Residential real estate loans held for sale are included in this segment. This segment also provides various business loans, including loans guaranteed by the Small Business Administration, business credit cards, deposit products and services such as cash management, payroll and direct deposit, merchant credit card and letters of credit to small businesses and professionals through the Company's branch network and other delivery channels.
RETAIL BANK SEGMENT FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30, 2026 Amount % September 30,
2026 		September 30,
2025 		Amount %
Income statement
Net interest income $ 992 $ 974 $ 18 2 % $ 2,916 $ 2,959 $ (43) -1 %
Noninterest income 257 236 21 9 710 691 19 3
Total revenue 1,249 1,210 39 3 3,626 3,650 (24) -1
Provision for credit losses 84 70 14 19 236 220 16 7
Noninterest expense 666 653 13 2 1,941 1,950 (9) -
Income before taxes 499 487 12 3 1,449 1,480 (31) -2
Income tax expense 127 124 3 3 368 375 (7) -2
Net income $ 372 $ 363 $ 9 3 % $ 1,081 $ 1,105 $ (24) -2 %
Average balance sheet
Loans held for sale $ 266 $ 259 $ 7 3 % $ 291 $ 200 $ 91 45 %
Loans:
Commercial and industrial 6,869 6,815 54 1 6,785 6,324 461 7
Real estate - commercial 1,776 1,699 77 5 1,717 1,653 64 4
Real estate - residential 22,342 21,975 367 2 21,982 20,840 1,142 5
Consumer 26,433 25,823 610 2 25,904 24,476 1,428 6
Total loans $ 57,420 $ 56,312 $ 1,108 2 % $ 56,388 $ 53,293 $ 3,095 6 %
Deposits:
Noninterest-bearing $ 24,997 $ 24,843 $ 154 1 % $ 24,699 $ 24,342 $ 357 1 %
Interest-bearing 65,337 64,846 491 1 64,928 65,567 (639) -1
Total deposits $ 90,334 $ 89,689 $ 645 1 % $ 89,627 $ 89,909 $ (282) - %
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The Retail Bank segment's net income in the third quarter of 2026 increased $9 million from the second quarter of 2026.
•Net interest income increased $18 million reflecting the impact of one additional calendar day in the recent quarter, higher average loan balances of $1.1 billion, higher average deposit balances of $645 million and a widening of the net interest margin on deposits of 3 basis points, partially offset by a narrowing of the net interest margin on loans of 5 basis points.
•Noninterest income increased $21 million reflecting higher residential mortgage loan sub-servicing fee revenue.
•The provision for credit losses increased $14 million reflective of higher net charge-offs in the recent quarter.
•Noninterest expense increased $13 million reflecting higher personnel-related costs and equipment and net occupancy costs.
•Average loans rose $1.1 billion reflecting an increase in average consumer loans that resulted from growth in average recreational finance loans and home equity loans and lines of credit, and higher average residential real estate loans.
•Average deposits increased $645 million reflecting an increase in average savings and interest-checking deposits and noninterest-bearing deposits.
Net income for the Retail Bank segment declined $24 million in the first nine months of 2026 as compared with the similar 2025 period.
•Net interest income declined $43 million reflecting a 6 basis-point and 9 basis-point narrowing of the net interest margin on loans and deposits, respectively, partially offset by higher average loan balances of $3.1 billion.
•Noninterest income increased $19 million reflecting higher service charges on retail deposit products and a rise in residential mortgage banking revenues driven by an increase in the amount of residential mortgage loans sub-serviced by the segment.
•The provision for credit losses increased $16 million reflective of higher net charge-offs of retail segment loan balances in the first nine months of 2026.
•Noninterest expense decreased $9 million reflecting the impact of the Company's accounting election described herein on other costs of operations, driven by amortization associated with residential mortgage loan servicing right assets in the first nine months of 2025, partially offset by higher centrally-allocated costs associated with technology, operations, risk management, finance, human resources and other support services provided to the Retail Bank segment.
•Average loans rose $3.1 billion reflecting an increase in average consumer loans that resulted from growth in average recreational finance loans and home equity loans and lines of credit. Also contributing to that increase was higher average residential real estate loans reflecting the retention of originated residential mortgage loans and purchases.
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Institutional Services & Wealth Management
The Institutional Services and Wealth Management segment provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients, as well as personal trust, planning and advisory, fiduciary, asset management, family office, and other services designed to help high net worth individuals and families grow, preserve and transfer wealth. This segment also provides investment products, including mutual funds and annuities and other services to customers.
INSTITUTIONAL SERVICES & WEALTH MANAGEMENT SEGMENT FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30, 2026 Amount % September 30,
2026 		September 30,
2025 		Amount %
Income statement
Net interest income $ 144 $ 149 $ (5) -2 % $ 449 $ 500 $ (51) -10 %
Noninterest income 235 235 - - 691 678 13 2
Total revenue 379 384 (5) -1 1,140 1,178 (38) -3
Provision for credit losses - - - - - 5 (5) -100
Noninterest expense 226 223 3 1 675 649 26 4
Income before taxes 153 161 (8) -5 465 524 (59) -11
Income tax expense 38 41 (3) -5 118 133 (15) -11
Net income $ 115 $ 120 $ (5) -5 % $ 347 $ 391 $ (44) -11 %
Average balance sheet
Loans:
Commercial and industrial $ 1,142 $ 1,155 $ (13) -1 % $ 1,171 $ 962 $ 209 22 %
Real estate - commercial 29 27 2 3 27 31 (4) -14
Real estate - residential 2,444 2,450 (6) - 2,447 2,285 162 7
Consumer 904 879 25 3 874 779 95 12
Total loans $ 4,519 $ 4,511 $ 8 - % $ 4,519 $ 4,057 $ 462 11 %
Deposits:
Noninterest-bearing $ 8,259 $ 8,766 $ (507) -6 % $ 8,843 $ 9,001 $ (158) -2 %
Interest-bearing 9,935 9,939 (4) - 10,008 9,754 254 3
Total deposits $ 18,194 $ 18,705 $ (511) -3 % $ 18,851 $ 18,755 $ 96 1 %
The Institutional Services and Wealth Management segment's net income decreased $5 million to $115 million in the third quarter of 2026 from $120 million in the second quarter of 2026.
•Net interest income decreased $5 million reflecting a $511 million decrease in average deposits and a 4 basis-point narrowing of the net interest margin on those deposits.
•Noninterest expense increased $3 million predominately due to a rise in personnel-related expenses.
Net income for the Institutional Services and Wealth Management segment decreased $44 million for the nine months ended September 30, 2026 as compared with the similar 2025 period.
•Net interest income decreased $51 million predominantly due to a 42 basis-point narrowing of the net interest margin on deposits, partially offset by higher average loan balances.
•Noninterest income increased $13 million reflecting higher trust and investment services income resulting from higher Institutional Services sales and fund management fees and a rise in Wealth Management fees from favorable market performance associated with managed assets and higher brokerage services income, partially offset by a $28 million distribution of an earnout payment related to the Company's sale of its CIT business in 2023 and a $10 million gain on the sale of a subsidiary that specialized in institutional services each in the year-earlier period.
•Noninterest expense rose $26 million reflecting a rise in professional and other services expense driven by higher legal and review costs and an increase in personnel-related expenses.
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All Other
The "All Other" category reflects other activities of the Company that are not directly attributable to the reported segments. Reflected in this category are the difference between the provision for credit losses and the calculated provision allocated to the reportable segments; goodwill and core deposit and other intangible assets resulting from the acquisitions of financial institutions; merger-related gains and expenses related to acquisitions; the net impact of the Company's internal funds transfer pricing methodology; eliminations of transactions between reportable segments; certain non-recurring transactions; and the residual effects of unallocated support systems and general and administrative expenses. The Company's investment securities portfolio, certain brokered deposits and short-term and long-term borrowings are generally included in the "All Other" category. In its management of interest rate risk, the Company utilizes interest rate swap agreements to modify the repricing characteristics of certain portfolios of earning assets and interest-bearing liabilities. The results of such activities are captured in the "All Other" category.
ALL OTHER CATEGORY FINANCIAL SUMMARY
Three Months Ended Change Nine Months Ended Change
(Dollars in millions) September 30,
2026 		June 30, 2026 Amount % September 30,
2026 		September 30,
2025 		Amount %
Income statement
Net interest income $ 118 $ 126 $ (8) -7 % $ 371 $ 156 $ 215 138 %
Noninterest income 54 70 (16) -24 178 75 103 136
Total revenue 172 196 (24) -13 549 231 318 137
Provision for credit losses (10) 28 (38) - 46 (13) 59 -
Noninterest expense 126 108 18 16 463 423 40 9
Income (loss) before taxes 56 60 (4) -8 40 (179) 219 -
Income tax expense (benefit) (1) 13 (14) - (30) (79) 49 -
Net income (loss) $ 57 $ 47 $ 10 20 % $ 70 $ (100) $ 170 - %
The "All Other" category net income was $57 million in the third quarter of 2026 as compared with $47 million in the second quarter of 2026.
•Net interest income decreased $8 million reflecting the comparatively unfavorable impact from interest rate swap agreements entered into for interest rate risk purposes.
•Noninterest income decreased $16 million reflecting a lower distribution from M&T's investment in BLG in the recent quarter.
•The provision for credit losses decreased $38 million reflecting the net impact of the allocation of the provision to the reportable segments.
•Noninterest expense rose $18 million reflecting higher costs associated with technology enhancements and other enterprise initiatives.
The net income recorded for the "All Other" category was $70 million for the first nine months of 2026 as compared with a net loss of $100 million in the similar 2025 period.
•Net interest income increased $215 million reflecting the comparatively favorable impact from each of interest rate swap agreements entered into for interest rate risk purposes and the Company's allocation methodologies for internal transfers related to funding charges and credits associated with earning assets and interest-bearing liabilities of the Company's reportable segments.
•Noninterest income increased $103 million predominantly reflecting $111 million of distributions from M&T's investment in BLG in the first nine months of 2026 as compared with $20 million in the first nine months of 2025.
•The provision for credit losses increased $59 million reflecting the net impact of the allocation of the provision to the reportable segments.
•Noninterest expense rose $40 million reflecting higher costs associated with technology enhancements and other enterprise initiatives and an increase in personnel-related expenses.
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Critical Accounting Estimates and Recent Accounting Developments
A discussion of the Company's critical accounting estimates and significant accounting policies can be found in M&T's 2025 Annual Report. A summary of recent accounting developments is included in note 1 of Notes to Financial Statements, including the Company's election on January 1, 2026 to prospectively measure its residential mortgage loan servicing right assets at fair value, which the Company considers to be a critical accounting estimate. As residential mortgage loan servicing rights generally do not trade in an active market, the Company utilizes a model to estimate fair value which considers the present value of expected future cash flows associated with servicing rights using assumptions that market participants would consider in estimating future servicing income and expenses. Such assumptions include prepayment speeds, servicing costs, loan default rates and an appropriate discount rate representing an OAS over market implied forward SOFR. Significant assumptions and the resulting fair values are subject to independent review and challenge by the Company's Treasury Product Control Department through comparisons to available data including recent market activity, independent third-party valuations and industry trade information and surveys. The results of such independent review and challenge are reported to the Company's Executive ALCO Committee. Further information on the fair value of residential mortgage loan servicing right assets and the sensitivity of such value to changes in assumptions is included in note 13 of Notes to Financial Statements.
Forward-Looking Statements
"Management's Discussion and Analysis of Financial Condition and Results of Operations" and other sections of this quarterly report contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the SEC. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on current expectations, estimates and projections about the Company's business, and management's beliefs and assumptions.
Statements regarding the potential effects of events or factors specific to the Company and/or the financial industry as a whole, as well as national and global events generally, on the Company's business, financial condition, liquidity and results of operations may constitute forward-looking statements. Such statements are subject to the risk that the actual effects may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond the Company's control.
Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "target," "estimate," "continue," or "potential," by future conditional verbs such as "will," "would," "should," "could," or "may," or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict and may cause actual outcomes to differ materially from what is expressed or forecasted.
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While there can be no assurance that any list of risks and uncertainties is complete, important factors that could cause actual outcomes and results to differ materially from those contemplated by forward-looking statements include the following, without limitation, as well as risks more fully discussed in Part I, Item 1A "Risk Factors" in the Company's 2025 Annual Report: economic conditions and growth rates, including inflation and market volatility; events, developments, and current conditions in the financial services industry, including trust, brokerage and investment management businesses; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, loan concentrations by type and industry, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; levels of client deposits; ability to contain costs and expenses; changes in the Company's credit ratings; domestic or international political developments and other geopolitical events, including trade and tariff policies and international conflicts and hostilities; changes and trends in the securities markets; common shares outstanding and common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-, brokerage-, and investment management-related revenues; federal, state or local legislation and/or regulations affecting the financial services industry, or M&T and its subsidiaries individually or collectively, including tax policy; regulatory supervision and oversight, including monetary policy and capital requirements; governmental and public policy changes; political conditions, either nationally or in the states in which M&T and its subsidiaries do business; the initiation and outcome of potential, pending and future litigation, investigations and governmental proceedings, including tax-related examinations and other matters; operational risk events, including loss resulting from fraud by employees or persons outside M&T and breaches in data and cybersecurity; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board, regulatory agencies or legislation; increasing price, product and service competition by competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products and services; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries' future businesses; and material differences in the actual financial results of merger, acquisition, divestment and investment activities compared with M&T's initial expectations, including the full realization of anticipated cost savings and revenue enhancements.
These are representative of the factors that could affect the outcome of the forward-looking statements. In addition, as noted, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which the Company does business, and other factors.
The Company provides further detail regarding these risks and uncertainties in its 2025 Annual Report, including in the Risk Factors section of such report, as well as in other SEC filings. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty and does not undertake to update forward-looking statements.
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M&T Bank Corporation and Subsidiaries
Table 1
QUARTERLY TRENDS
2026 Quarters 2025 Quarters
Third Second First Fourth Third Second First
(Dollars in millions, except per share)
Earnings and dividends
Interest income (taxable-equivalent basis) $ 2,679 $ 2,632 $ 2,547 $ 2,648 $ 2,692 $ 2,618 $ 2,572
Interest expense 874 828 784 858 919 896 865
Net interest income 1,805 1,804 1,763 1,790 1,773 1,722 1,707
Less: Provision for credit losses 135 120 140 125 125 125 130
Other income 743 740 689 696 752 683 611
Less: Other expense 1,393 1,349 1,438 1,379 1,363 1,336 1,415
Income before income taxes 1,020 1,075 874 982 1,037 944 773
Applicable income taxes 233 245 199 212 233 219 177
Taxable-equivalent adjustment 12 12 11 11 12 9 12
Net income $ 775 $ 818 $ 664 $ 759 $ 792 $ 716 $ 584
Net income available to common shareholders - diluted $ 732 $ 781 $ 620 $ 718 $ 754 $ 679 $ 547
Per common share data:
Basic earnings 5.08 5.35 4.16 4.71 4.85 4.26 3.33
Diluted earnings 5.04 5.32 4.13 4.67 4.82 4.24 3.32
Cash dividends 1.50 1.50 1.50 1.50 1.50 1.35 1.35
Average common shares outstanding:
Basic 144,184 145,891 149,225 152,666 155,558 159,221 164,209
Diluted 145,174 146,758 150,109 153,712 156,553 160,005 165,047
Performance ratios
Annualized return on:
Average assets 1.40 % 1.51 % 1.26 % 1.41 % 1.49 % 1.37 % 1.14 %
Average common shareholders' equity 11.44 12.30 9.67 10.87 11.45 10.39 8.36
Net interest margin on average earning assets
(taxable-equivalent basis) 		3.65 3.70 3.70 3.70 3.69 3.62 3.65
Nonaccrual loans to total loans .90 .85 .89 .91 1.11 1.16 1.15
Net operating (tangible) results (a)
Net operating income $ 780 $ 823 $ 671 $ 767 $ 798 $ 724 $ 594
Diluted net operating income per common share 5.08 5.35 4.18 4.72 4.87 4.28 3.38
Annualized return on:
Average tangible assets 1.47 % 1.59 % 1.33 % 1.49 % 1.56 % 1.44 % 1.21 %
Average tangible common shareholders' equity 17.29 18.57 14.51 16.24 17.13 15.54 12.53
Efficiency ratio (b) 54.4 52.8 58.3 55.1 53.6 55.2 60.5
Balance sheet data
Average balances:
Total assets (c) $ 218,860 $ 216,532 $ 213,828 $ 212,891 $ 211,053 $ 210,261 $ 208,321
Total tangible assets (c) 210,367 208,033 205,323 204,379 202,533 201,733 199,791
Earning assets 196,739 195,216 192,594 192,366 190,920 190,535 189,116
Investment securities 38,552 38,728 37,845 36,705 36,559 35,335 34,480
Loans 143,296 140,650 137,421 136,542 135,890 134,311 134,339
Deposits 166,777 163,524 164,176 164,940 162,576 163,258 161,080
Borrowings 19,225 20,794 16,759 14,619 15,633 14,263 14,154
Common shareholders' equity (c) 25,441 25,505 26,072 26,279 26,189 26,272 26,604
Tangible common shareholders' equity (c) 16,948 17,006 17,567 17,767 17,669 17,744 18,074
At end of quarter:
Total assets (c) 220,510 219,261 214,736 213,510 211,277 211,584 210,321
Total tangible assets (c) 212,020 210,765 206,234 205,001 202,761 203,060 201,789
Earning assets 197,688 197,066 193,072 192,516 190,684 191,074 190,463
Investment securities 37,894 38,374 38,621 36,649 36,864 35,568 35,137
Loans 144,756 142,530 139,053 137,635 136,345 135,491 133,434
Deposits 167,510 168,885 163,741 166,909 163,426 164,453 165,409
Borrowings 20,021 18,182 19,026 13,060 14,987 14,451 12,069
Common shareholders' equity (c) 25,142 25,512 25,538 26,343 26,334 26,131 26,597
Tangible common shareholders' equity (c) 16,652 17,016 17,036 17,834 17,818 17,607 18,065
Equity per common share 174.95 176.03 173.82 173.49 170.43 166.94 163.62
Tangible equity per common share 115.88 117.41 115.96 117.45 115.31 112.48 111.13
__________________________________________________________________________________
(a)Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related expenses (when incurred) which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in Table 2.
(b)Excludes impact of merger-related expenses (when incurred) and net securities transactions.
(c)The difference between total assets and total tangible assets, and common shareholders' equity and tangible common shareholders' equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in Table 2.
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M&T Bank Corporation and Subsidiaries
Table 2
RECONCILIATION OF QUARTERLY GAAP TO NON-GAAP MEASURES
2026 Quarters 2025 Quarters
(Dollars in millions, except per share) Third Second First Fourth Third Second First
Income statement data
Net income
Net income $ 775 $ 818 $ 664 $ 759 $ 792 $ 716 $ 584
Amortization of core deposit and other intangible assets (a) 5 5 7 8 6 8 10
Net operating income $ 780 $ 823 $ 671 $ 767 $ 798 $ 724 $ 594
Earnings per common share
Diluted earnings per common share $ 5.04 $ 5.32 $ 4.13 $ 4.67 $ 4.82 $ 4.24 $ 3.32
Amortization of core deposit and other intangible assets (a) .04 .03 .05 .05 .05 .04 .06
Diluted net operating earnings per common share $ 5.08 $ 5.35 $ 4.18 $ 4.72 $ 4.87 $ 4.28 $ 3.38
Other expense
Other expense $ 1,393 $ 1,349 $ 1,438 $ 1,379 $ 1,363 $ 1,336 $ 1,415
Amortization of core deposit and other intangible assets (7) (7) (9) (10) (10) (9) (13)
Noninterest operating expense $ 1,386 $ 1,342 $ 1,429 $ 1,369 $ 1,353 $ 1,327 $ 1,402
Efficiency ratio
Noninterest operating expense (numerator) $ 1,386 $ 1,342 $ 1,429 $ 1,369 $ 1,353 $ 1,327 $ 1,402
Taxable-equivalent net interest income $ 1,805 $ 1,804 $ 1,763 $ 1,790 $ 1,773 $ 1,722 $ 1,707
Other income 743 740 689 696 752 683 611
Less: Gain (loss) on bank investment securities (1) 2 4 1 1 - -
Denominator $ 2,549 $ 2,542 $ 2,448 $ 2,485 $ 2,524 $ 2,405 $ 2,318
Efficiency ratio 54.4 % 52.8 % 58.3 % 55.1 % 53.6 % 55.2 % 60.5 %
Balance sheet data
Average assets
Average assets $ 218,860 $ 216,532 $ 213,828 $ 212,891 $ 211,053 $ 210,261 $ 208,321
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (45) (51) (59) (69) (79) (89) (92)
Deferred taxes 17 17 19 22 24 26 27
Average tangible assets $ 210,367 $ 208,033 $ 205,323 $ 204,379 $ 202,533 $ 201,733 $ 199,791
Average common equity
Average total equity $ 28,331 $ 27,939 $ 28,648 $ 28,970 $ 28,583 $ 28,666 $ 28,998
Preferred stock (2,890) (2,434) (2,576) (2,691) (2,394) (2,394) (2,394)
Average common equity 25,441 25,505 26,072 26,279 26,189 26,272 26,604
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (45) (51) (59) (69) (79) (89) (92)
Deferred taxes 17 17 19 22 24 26 27
Average tangible common equity $ 16,948 $ 17,006 $ 17,567 $ 17,767 $ 17,669 $ 17,744 $ 18,074
At end of quarter
Total assets
Total assets $ 220,510 $ 219,261 $ 214,736 $ 213,510 $ 211,277 $ 211,584 $ 210,321
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (41) (48) (55) (64) (74) (84) (93)
Deferred taxes 16 17 18 20 23 25 26
Total tangible assets $ 212,020 $ 210,765 $ 206,234 $ 205,001 $ 202,761 $ 203,060 $ 201,789
Total common equity
Total equity $ 28,159 $ 27,946 $ 27,972 $ 29,177 $ 28,728 $ 28,525 $ 28,991
Preferred stock (3,017) (2,434) (2,434) (2,834) (2,394) (2,394) (2,394)
Common equity 25,142 25,512 25,538 26,343 26,334 26,131 26,597
Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,465) (8,465)
Core deposit and other intangible assets (41) (48) (55) (64) (74) (84) (93)
Deferred taxes 16 17 18 20 23 25 26
Total tangible common equity $ 16,652 $ 17,016 $ 17,036 $ 17,834 $ 17,818 $ 17,607 $ 18,065
__________________________________________________________________________________
(a)After any related tax effect.
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