M & T Bank Corp

Profitability down QoQ but still strong vs targets (ROTA/ROTCE beat): - Diluted GAAP EPS: $5.04 in Q3 vs $5.32 in the linked quarter; Net income: $775M vs $818M. - Return metrics (tangible/net operating basis): ROA 1.4%, ROCE 11.44%; Net operating ROTA 1.47% and Net operating ROTCE 17.29%, both above long-term incentive targets. - YTD: net operating earnings per share up ~17% vs same period 2025, supporting the “consistent growth + return discipline” narrative.

Net interest income/margin pressure but outlook remains constructive: - Taxable-equivalent NII: ~$1.8B, roughly flat QoQ; NIM: 3.65%, down 5 bps (muted by lower non-accrual interest and higher funding costs; also affected by “one additional day” and repricing). - Key operating assumption: management is optimizing overall returns, not maximizing NII at the expense of margin and capital. - Forecast (Q4): taxable-equivalent NII $1.83B–$1.85B and interest margin in mid-3.60s, assuming one rate hike in December.

Loan growth solid; deposit-driven funding improved (but deposit cost rising): - Average loans held for investment: $143.3B, +~$2.6B (+2%). Growth driven by CRE and consumer; C&I ~flat. - CRE: $24.9B average, +~$1.6B (+7%) (reflects origination strength from late Q2; stable paydowns). - Consumer: $27.3B average, +~$0.6B (+2%) (recreational finance, HELOC). - Deposits: average deposits $166.8B, +~$3.3B; increased deposits let them reduce short-term borrowings (avg short-term borrowing down ~$2.8B). - Deposit costs: +10 bps QoQ to ~2.05%; mgmt attributed part of the increase to time deposits/promotional CD maturities placed late Q2/early Q3 that later reprice upward after September’s rate hike.