M&t Bank Corporation · NYSE:MTB
M&t Bank — Q1 2025 Earnings Presentation
27 slides from M&t Bank's earnings presentation, Apr 14, 2025
Slide 1: Earnings Results 1st Quarter 2025
Earnings Results 1st Quarter 2025 April 14, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cos
Slide 3: Together, We are M&T Bank
Together, We are M&T Bank We are committed to Our Customers Our Communities Our Colleagues Our Shareholders Linking our customers M&T is a We empower our We deliver reliable results to the people, capital, and “bank for communities,” employees to be the best anchored by a strong balance ideas that e
Slide 4: Key Awards and Accolades
Key Awards and Accolades Received 13 “Best Bank” Awards across Small Business and Middle-Market Categories Small Business • Best Bank for Valuing Long-Term Relationships (U.S.) #1 in Customer Satisfaction with • Best Bank for Customer Service (U.S.) Mobile Banking Apps among • Best Bank for Ease of
Slide 5: Financial Results
M&&Bank Corporation! 5
Slide 6: First Quarter 2025 Earnings Highlights
First Quarter 2025 Earnings Highlights GAAP Notable items ($ in millions, except per share) 1Q25 4Q24 1Q24 ($ in millions, except per share) 1Q25 4Q24 1Q24 Revenues $2,306 $2,385 $2,260 Amt EPS Amt EPS Amt EPS Noninterest Expense 1,415 1,363 1,396 Non-core Securities Net $— $— $18 $0.08 $— $— Gains(
Slide 7: First Quarter 2025 Earnings Highlights
First Quarter 2025 Earnings Highlights Net Operating Results (Non-GAAP)(1) ($ in millions, except per share) 1Q25 4Q24 1Q24 Net Operating Income $594 $691 $543 Diluted Net Operating EPS 3.38 3.92 3.09 Efficiency Ratio 60.5% 56.8% 60.8% Net Operating ROTA 1.21 1.35 1.08 Net Operating ROTCE 12.53 14.6
Slide 8: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin QoQ Drivers $1,731 $1,739 $1,740 • Taxable-equivalent net interest income(1) decreased -$33 $1,692 $1,707 million or less than -2% QoQ – Two less days – Lower average earning assets (smaller balance sheet) – Favorable deposit costs (pricing beta) $ IN MILLIO
Slide 9: Balance Sheet – Overview
Balance Sheet – Overview Change 1Q25 vs Average Balances, $ in billions, except per share 1Q25 4Q24 1Q24 4Q24 1Q24 Interest-bearing Deposits at Banks $19.7 $23.6 $30.7 -17% -36% Investment Securities 34.5 33.7 28.6 2 21 Commercial and Industrial (“C&I”) 61.0 60.7 56.8 1 7 Commercial Real Estate (“CR
Slide 10: Balance Sheet – Average Loans
Balance Sheet – Average Loans $134.6 $134.8 $135.7 $134.8 $133.8 QoQ Drivers $24.0 $21.2 $22.0 $22.9 $24.3 Average loans decreased -$879 million or -1% QoQ: $23.1 $23.0 $23.0 $23.1 $23.2 • C&I loans increased +1% (+$352 million) • CRE loans declined -6% (-$1.6 billion), reflecting lower $ IN BILLION
Slide 11: Balance Sheet – Securities and Cash
Balance Sheet – Securities and Cash Average Investment Securities and Yield Securities and Cash - at 3/31/25 $34.5 Other $33.7 Securities $31.0 2% $29.7 Interest- HTM $28.6 bearing Securities deposits 23% at banks 36% $57.9B $ IN BILLIONS Yield up +12 bps TOTAL 4.00% 3.88% 3.61% 3.70% 3.30% Cash AFS
Slide 12: Balance Sheet – Average Deposits
Balance Sheet – Average Deposits 1Q24 2Q24 3Q24 4Q24 1Q25 Total deposit cost 2.06% 2.06% 2.06% 1.90% 1.70% QoQ Drivers Interest-bearing deposit cost 2.93% 2.90% 2.88% 2.64% 2.37% Average deposits decreased -$3.4 billion or -2% QoQ: $164.1 $163.5 $161.5 $164.6 $161.2 $20.6 $19.8 $16.0 $14.2 • Interes
Slide 13: Income Statement – Noninterest Income
Income Statement – Noninterest Income Change 1Q25 vs $657 $ in millions 1Q25 4Q24 1Q24 4Q24 1Q24 $606 $611 $ IN MILLIONS $580 $584 Mortgage Banking Revenues $118 $117 $104 —% 13% Service Charges on Deposits 133 131 124 1 7 Trust Income 177 175 160 1 11 Brokerage Services 32 30 29 3 10 Non-hedge Deri
Slide 14: Income Statement – Noninterest Expenses
Income Statement – Noninterest Expenses Change 1Q25 vs $1,415 $ in millions 1Q25 4Q24 1Q24 4Q24 1Q24 $1,396 $1,363 $1,297 $1,303 (4) Salaries & Benefits $887 $790 $833 12% 7% $1,381 $1,402 $1,350 $1,284 $1,291 Equip & Occupancy 132 133 129 -1 3 $ IN MILLIONS Outside Data Proc & SW 136 125 120 10 14
Slide 15: Credit
Credit Net Charge-offs Provision for Credit Losses $160 $ IN MILLIONS $ IN MILLIONS $138 $137 $120 $114 $200 0.47% 0.42% 0.41% 0.35% 0.34% $150 $140 $130 $120 1Q24 2Q24 3Q24 4Q24 1Q25 Net Charge-offs ($) Net Charge-off Ratio (%) 1Q24 2Q24 3Q24 4Q24 1Q25 Nonaccrual Loans Allowance for Credit Losses $
Slide 16: Criticized C&I and CRE Loans
Criticized C&I and CRE Loans Criticized loans decreased -$516 million QoQ: $12.9 • C&I increased +$151 million $12.1 – Driven predominantly by motor vehicle and $10.9 recreational finance dealers $9.9 • CRE decreased -$667 million $9.4 – Permanent CRE -$591 million $ IN BILLIONS – Construction -$76
Slide 17: Criticized C&I Loans
Criticized C&I Loans March 31, 2025 December 31, 2024 Criticized Criticized Total Criticized Criticized Total (Dollars in millions) Outstanding Accrual Nonaccrual Criticized Outstanding Accrual Nonaccrual Criticized Commercial and industrial excluding owner-occupied real estate by industry: Financia
Slide 18: Criticized CRE Loans
Criticized CRE Loans March 31, 2025 December 31, 2024 Criticized Criticized Total Criticized Criticized Total (Dollars in millions) Outstanding Accrual Nonaccrual Criticized Outstanding Accrual Nonaccrual Criticized Permanent finance by property type: Apartments/Multifamily $5,593 $713 $94 $807 $5,6
Slide 19: Capital
Capital CET1(1) TBVPS (2) 11.68% $109.36 $111.13 11.54% 11.50% $107.97 11.45% $102.42 11.08% $99.54 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 QoQ Drivers • CET1 capital ratio decreased -18 bps to 11.50%(1) at the • AFS and pension-related AOCI would have impacted the end of 1Q25 CET1 capital
Slide 20: 2025 Outlook
2025 Outlook 2025 Outlook Comments Net Interest Income $7.05 billion to • NIM in the mid to high 3.60s Taxable-equivalent $7.15 billion Income Statement $2.5 billion to • Trending toward high end of the range Fee Income $2.6 billion • Continued strength in trust and mortgage GAAP Expense $5.4 billio
Slide 21: Focused on Four Priorities
Focused on Four Priorities We continue our mission to simplify M&T and make investments that will improve the experience of our customers and colleagues — and help us maintain our differentiated community bank approach Build our New England and Optimize our Resources through Simplification Long Isla
Slide 22: Why invest in M&T?
Why invest in M&T? Purpose-Driven Successful and Sustainable Business Model that Produces Strong Shareholder Returns Purpose Driven Successful and Strong Shareholder Organization Sustainable Returns Business Model • Long term focused with deeply • Experienced and seasoned • 15-17% ROTCE(1) embedded
Slide 23: Appendix
Appendix M&&Bank Corporation| 23
Slide 24: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix GAAP to Net Operating (Non-GAAP) Reconciliation In millions, except per share 1Q24 2Q24 3Q24 4Q24 1Q25 Net income Net income $531 $655 $721 $681 $584 Amortization of core deposits and other intangible assets (1) 12 10 10 10 10 Net operating income $543 $665 $731 $691 $594 Earnings per commo
Slide 25: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix GAAP to Net Operating (Non-GAAP) Reconciliation In millions 1Q24 2Q24 3Q24 4Q24 1Q25 Other expense Other expense $1,396 $1,297 $1,303 $1,363 $1,415 Amortization of core deposit and other intangible assets (15) (13) (12) (13) (13) Noninterest operating expense $1,381 $1,284 $1,291 $1,350 $1,
Slide 26: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix GAAP to Tangible (Non-GAAP) Reconciliation In millions 1Q24 2Q24 3Q24 4Q24 1Q25 Average assets Average assets $211,478 $211,981 $209,581 $211,853 $208,321 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (140) (126) (113) (100) (92) Deferred taxes 33
Slide 27: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix GAAP to Tangible (Non-GAAP) Reconciliation In millions 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Total assets Total assets $215,137 $208,855 $211,785 $208,105 $210,321 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (132) (119) (107) (94) (