M&t Bank Corporation · NYSE:MTB
M&t Bank — BancAnalysts Association of Boston Conference 2015
38 slides from M&t Bank's conference presentation, Nov 6, 2015
Slide 1: BancAnalysts Association of Boston Conference Presentation
BancAnalysts Association of Boston Conference Presentation November 6, 2015 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This presentation contains forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving M&T’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by word
Slide 3: Today's Agenda
Today’s Agenda Company Overview and Performance History of Strong Returns Investments in Our Infrastructure Capitalizing on Business Opportunities Prudent Capital Allocation
Slide 4: Company Overview
Company Overview M&IBank
Slide 5: Overview of M&T Bank
Overview of M&T Bank Top 15 US-based commercial bank holding company with $98 billion in assets – $122 billion(1) 674 domestic branches; 809(1) post-merger, across eight states and Washington DC Successful operating model for over 30 years Diverse business mix including renowned Wilmington Trust wea
Slide 6: M&T Talent and Leadership
M&T Talent and Leadership M&T’s 13-member Management Group averages 25 years of service Average 11 years on Management Group 12 senior M&T executives have worked on all 23 prior acquisitions 69 senior managers, on average, have worked on 12 prior acquisitions Generally develop general manager talent
Slide 7: Performance
Performance M&IBank
Slide 8: Key Metrics
Key Metrics The Efficiency Ratio and Pre-tax, Pre-provision Earnings are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is available in the appendix. The Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible as
Slide 9: M&T's Business Model – a Historical Perspective
M&T’s Business Model – a Historical Perspective(1) (2) Prior years not restated for change of accounting policy for LIHTC FR Y-9C financial data not available for 3Q 2015 MTB 3Q 2015: 2.33% MTB 3Q 2015: 0.24% MTB 3Q 2015: 57.05% MTB 3Q 2015: 12.98%
Slide 10: Recent Performance in Context
Recent Performance in Context Historically, M&T has performed: Above peers during “times of stress” In line with peers during “normal” times 15% Net Operating EPS CAGR Since 1983 The last three years have been: Slow revenue growth environment Benign credit environment Period of significant investmen
Slide 11: Drivers of Performance: Core EPS Growth – LTM
M&T Drivers of Performance: Core EPS Growth – LTM Source: SNL Financial Note: Red line represents median Core EPS utilizes net income after taxes and before extraordinary items, less net income attributable to non-controlling interest, gain on the sale of held to maturity and available for sale secu
Slide 12: Drivers of Performance: Core Revenue Growth – LTM
M&T Drivers of Performance: Core Revenue Growth – LTM Source: SNL Financial Note: Red line represents median Core Revenue excludes securities gains/losses and nonrecurring items *Total CAGR represents beginning of 3Q12 LTM to end of 2Q15 LTM
Slide 13: Drivers of Performance: Core Expense Growth – LTM
M&T Drivers of Performance: Core Expense Growth – LTM Source: SNL Financial Note: Red line represents median. Core Expense excludes nonrecurring expenses and provision *Total CAGR represents beginning of 3Q12 LTM to end of 2Q15 LTM
Slide 14: Drivers of Performance: Core PPNR Growth – LTM
M&T Drivers of Performance: Core PPNR Growth – LTM Source: SNL Financial Note: Red line represents median Core PPNR excludes nonrecurring revenue and expenses and securities gains/loss *Total CAGR represents beginning of 3Q12 LTM to end of 2Q15 LTM Top quartile performance while making Investments
Slide 15: Loan Loss Reserve Release – M&T versus Peers
Loan Loss Reserve Release – M&T versus Peers Source: SNL Financial
Slide 16: Drivers of Performance: Credit Cycle Impact
M&T Drivers of Performance: Credit Cycle Impact (3Q11 – 2Q15) Source: SNL Financial RANK 1 2 3 4 5 6 7 8 9 10 11 12 Note: This is the sum of loan loss provisions minus the sum of net charge-offs minus over the 3Q11-2Q15 period divided by average loans. MTB 3Q 2015: 0.24% Cumulative Net Charge-offs v
Slide 17: Investments in Our Infrastructure
Investments in Our Infrastructure
Slide 18: Our Infrastructure Investments
Our Infrastructure Investments Risk management infrastructure BSA/AML compliance Capital Planning and Stress Testing Data centers Technology and cybersecurity
Slide 19: Current and Future Investments in the Infrastructure
Current and Future Investments in the Infrastructure Data governance and data quality Integrated framework for risk and regulatory reporting Customer facing technology Keeping abreast of digital Focused on enhancing capabilities for scale and efficiency
Slide 20: Capitalizing on Opportunities
Capitalizing on Opportunities
Slide 21: Outlook and Opportunities
Outlook and Opportunities Outlook remains challenging Revenue growth 2% YTD vs prior year(1) Optimizing expense base to fund technology infrastructure investments Focused on managing expenses to produce modest positive operating leverage Limited prospect for improvement in credit from current levels
Slide 22: M&T Franchise Growing Footprint
M&T Franchise Growing Footprint Complementary Combined Footprint with Hudson City
Slide 23: Hudson City Transaction Estimated Financial Impacts
Hudson City Transaction Estimated Financial Impacts Immediately accretive to tangible book value per share Immediate 50 – 70 basis point accretion to regulatory capital ratios Mid-single digit accretion to net operating earnings in 2016 IRR remains about 18% Deal value: $5.2 billion(1) 0.8 times TBV
Slide 24: Hudson City Transaction Summary
Hudson City Transaction Summary Expect to add about $19 billion of loans / $24 billion of total assets Will de-leverage acquired balance sheet after closing 135 acquired branches in New Jersey, Connecticut and Long Island Consolidated NIM slightly below pre-merger M&T Estimate of merger-related expe
Slide 25: New Jersey Expansion Opportunity
New Jersey Expansion Opportunity New Jersey Population: 8.9 million Adjacent to existing M&T markets (Philadelphia, NYC) Median income of $72K (~35% higher than national average) 274,395 small businesses and 5,540 middle market companies in New Jersey; nearly equal to upstate New York and Maryland c
Slide 26: Market Dynamics Across M&T Footprint
Market Dynamics Across M&T Footprint M&A activity is accelerating Four of five transactions over $1 billion since 4Q 2014 occurred in our footprint Industry valuations remain healthy M&T’s leading market share positions us to compete for customers from acquired banks Can leverage existing infrastruc
Slide 27: Prudent Capital Allocation
Prudent Capital Allocation M&IBank
Slide 28: Capital Allocation in Response to Industry Trends
Capital Allocation in Response to Industry Trends Dividends Share Repurchases Retained for Growth * Capital Allocation as a % of Net Operating Income
Slide 29: Drivers of Performance: Average Diluted Shares Growth – LTM
M&T Drivers of Performance: Average Diluted Shares Growth – LTM Source: SNL Financial Note: Red line represents median *Total CAGR represents beginning of 3Q12 LTM to end of 2Q15 LTM 3 4 5 6 7 8 9 10 11 12 13 14 15 CORE NONINTEREST EXPENSE Rank 3Q12 LTM 4Q12 LTM 1Q13 LTM 2Q13 LTM 3Q13 LTM 4Q13 LTM 1
Slide 30: History of Strong Returns
History of Strong Returns M&IBank
Slide 31: Time Tested Business Model
Full service commercial bank with strong market share in communities Complemented by renowned Wilmington Trust affiliates Efficiency advantage required in a highly commoditized industry Conservative risk appetite with prudent underwriting discipline Doing business with customers we know and understa
Slide 32: Earnings & Dividend Growth: 1983 – 3Q 2015
Earnings & Dividend Growth: 1983 – 3Q 2015 Note: Data prior to 1998 does not include provisions of SFAS No. 123 and No. 148 stock option expensing. Net Operating Income and Net Operating EPS are non-GAAP financial measures. Refer to the Appendix for a reconciliation between these measures and GAAP.
Slide 33: M&T Bank Corporation… a solid investment
M&T Bank Corporation… a solid investment 18.9% Annual rate of return since 1980(1) Ranked 24th within entire universe(2) of U.S. based stocks traded publicly since 1980 CAGR calculated assuming reinvestment of dividends through September 30, 2015. Includes 607 U.S. based publicly traded stocks $2,07
Slide 34: Total Shareholder Return
Total Shareholder Return 18.9% annual rate of return since 1980, ranked 24th best within entire universe of publicly-traded U.S. stocks 10-year total shareholder return CAGR was 593 basis points above the peer median and 498 basis points above the BKX 5-year and 1-year total return in line with peer
Slide 35: Appendix and GAAP Reconciliations
Appendix and GAAP Reconciliations
Slide 36: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Prior full years not restated for change of accounting policy for LIHTC
Slide 37: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 38: M&T Peer Group
BB&T Corporation M&T Bank Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Wells Fargo & Company SunTrust Banks, Inc. Huntington Bancshares Incorporated Zions Bancorporation KeyCorp M&T Peer Group U.S. Bancorp
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