M&T Bank Corp (MTB.N): 3Q26 Initial Take - Solid Quarter with ~10c Core PPNR Beat on Fee Strength

Citi's initial take on M&T Bank's 3Q26 results: MTB reported a 10c core PPNR beat versus consensus, largely driven by better fees (~18c tailwind) and well-managed expenses (~2c tailwind), though NII came in below expectations (~11c headwind), seemingly on a smaller average earning asset base and lower-than-expected NIM of 3.65% (including ~3bps impact from lower nonaccruals). Fee lines are hard to compare with Street numbers given added fee-line disclosures this quarter, but on a y/y basis trust fees (up ~6%), service charges (up 3.8%) and mortgage banking fees (up 3.4%) were strongest. On credit, NCOs rose 12bps q/q to 0.35% and NPLs ticked up 5bps to 0.9%, while the reserve ratio fell 2bps to 1.51%, with LLP ~4c better than expected aiding the bottom line. CET1 was roughly stable q/q at 10.16%, with ~$323 million of share repurchases in the quarter. 4Q guidance implies ~2% upside to expectations, largely on fees and expenses, with NII in line. Rating: Neutral;