M&t Bank Corporation · NYSE:MTB
M&t Bank — Investor Presentation (November 2020)
34 slides from M&t Bank's investor presentation, Nov 6, 2020
Slide 1: Investor Update Fourth Quarter 2020
Investor Update Fourth Quarter 2020 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that do not describe historical or current facts are forward-looking statements, including statements regarding M
Slide 3: A Leading Community Bank and Bank for Communities: Our Performance Principles
A Leading Community Bank and Bank for Communities: Our Performance Principles Top 20 U.S.-based, commercial bank holding company Proven track record of results through multiple economic cycles Consistent above average returns relative to peers over decades Local scale leading to superior credit perf
Slide 4: Practicing Stakeholder Capitalism for Decades
Practicing Stakeholder Capitalism for Decades Our purpose (why we do what we do) To make a difference in people’s lives Our mission (what we do) We are a bank for communities ─ committed to improving the lives of our customers and all the communities we touch.
Slide 5: The M&T Story: A Community Bank Model and a Bank for Communities
The M&T Story: A Community Bank Model and a Bank for Communities Local Scale Credit Discipline Our People Long-term and deep customer relationships Stable low-cost deposit base with top share in core markets Lead bank share among middle market firms in key communities #1 or 2 share in 9 of 12 SBA di
Slide 6: Delivering Growth Over Decades
Loans: MTB Peer Median Quartile Commercial Real Estate 7% > 4% Top Commercial & Industrial 7% > 6% Top Residential Real Estate 5% > 3% Top Consumer 6% > 2% 2nd Total Loans 6% > 4% 2nd Deposits: Noninterest-Bearing 13% > 10% Top Interest-Bearing 6% > 3% 2nd Total Deposits 8% > 6% 2nd Delivering Growt
Slide 7: Strong Financial Results Over the Long Term
ROTCE (average) GAAP EPS Growth – 20 Years (CAGR) ROTCE – 20 Years Dividend Growth – 20 Years (CAGR) 20 Years 10 Years 5 Years Average Min Strong Financial Results Over the Long Term Source: S&P Global Market Intelligence. Notes: ROTCE, dividend growth and EPS growth through FY2019. EPS and dividend
Slide 8: Delivering Growth in Recent Years
Delivering Growth in Recent Years Consumer Bank 1.3% Increase in primary1 checking customers 2.9 Products per customer (flat Y.O.Y.) 44% Net Promoter Score2 (up 6% pts. Y.O.Y.) Business Bank 3.7% Increase in customers 4.5 Products per customer (up 0.3 products Y.O.Y.) 88% Customer satisfaction3 (fla
Slide 9: Strong Financial Results in Recent Years
Source: S&P Global Market Intelligence and company data. ROTCE Operating EPS CAGR Strong Financial Results in Recent Years
Slide 10: Local Scale Leads to Deposit Advantage
Total Cost of Deposits Noninterest-bearing deposits represented 39% of 3Q 2020 average total deposits for M&T compared to 31% peer median M&T Peer Median 2000-2020YTD Average M&T 1.03 Peer Median 1.19 Difference -0.16 Local Scale Leads to Deposit Advantage Sources: S&P Global Market Intelligence and
Slide 11: Superior Credit Results Through Multiple Economic Cycles
NCO % of Loans Source: S&P Global Market Intelligence and company filings. Industry data represents all FDIC-insured institutions from the FDIC’s Quarterly Banking Profile. Consistent credit standards through economic cycles Emphasis on secured lending: cash flow + collateral + guarantors Customer s
Slide 12: Best-In-Class Credit Results Across All Portfolios
Best-In-Class Credit Results Across All Portfolios Source: S&P Global Market Intelligence and company filings. Residential Real Estate Other CRE Other Consumer HELOC Construction C&I MTB Peer Range Peer Median
Slide 13: Superior Credit Performance Relative to Peers and Industry
Superior Credit Performance Relative to Peers and Industry Source: S&P Global Market Intelligence and FDIC. Sorted by EOP total assets at 6/30/20. Calculated as actual NCO ratio divided by expected NCO ratio which is based on FDIC data for commercial banks and loan portfolio composition. 100% ratio
Slide 14: Higher Returns Relative to Risk
Higher Returns Relative to Risk Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Risk Adjusted Net Interest Margin (NII less NCO % of AEA) MTB Peer Range Median Q3 2020 YTD Source: S&P Global Market Intelligence and company filings.
Slide 15: Superior Growth and Pricing
Deposit Growth – 3Q20 YoY Cost of Funding Earning Assets – 3Q20 Loan Yield – 3Q20 Commercial & Consumer Loan Growth – 3Q20 YoY Total Deposits Non-interest Bearing Deposits Excluding PPP Source: S&P Global Market Intelligence and company filings. Cost of funding earning assets represents annualized c
Slide 16: Efficient Operator Through the Cycles
Efficient Operator Through the Cycles Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Operating Efficiency Ratio Q3 2020 LTM Sources: S&P Global Market Intelligence and company filings MTB Peer Range Median
Slide 17: Prudent Stewards of Shareholders' Capital
Disciplined return criteria – lending and investments Higher return earning asset mix Moderate dividend payout One of two S&P banks to maintain dividend through the Great Financial Crisis Acquisitions that clearly present value creation History of accretive acquisitions Consistently return excess ca
Slide 18: Meeting Evolving Needs: Talent Is the Greatest Differentiator
Meeting Evolving Needs: Talent Is the Greatest Differentiator Seasoned, Skilled, and Stable Digitally forward, locally focused Enhanced team with new skill sets including design engineers and anthropologists to solve problems & deliver solutions Partnerships with fintechs to innovate and create cust
Slide 19: Continuous Focus on Customers & Communities Through the Decades
Continuous Focus on Customers & Communities Through the Decades Customer Focused Business Support $1.7 billion in community development loans & investments 40 hours of volunteer time to employees yearly $34+ million in grants in 2020 Opened tech hub; Launched Tech Academy Co-investments with start-u
Slide 20: Powering Community Banking with Digital Capabilities
Powering Community Banking with Digital Capabilities How Customers Shop How Customers Join How Customers Bank How Customers Strive HUMAN DIGITAL DIGITAL-ASSISTED Virtual Communication Tools: Digital Appointment Setting, Virtual Conferencing, Live Chat Electronic Signature Personalized MTB.com Advanc
Slide 21: Our Community Focus Results in Increased Market Share: Maryland
Our Community Focus Results in Increased Market Share: Mission Maryland Scalable approach to large or small communities Combining a community banking ‘mindset’ with the deep product offerings to tailor services for personal and business clients this led to Highest deposit share growth of any bank in
Slide 22: Unwavering Focus on Performance Principles
Unwavering Focus on Performance Principles Top 20 U.S.-based, commercial bank holding company Proven track record of results through multiple economic cycles Consistent above average returns relative to peers over decades Local scale leading to superior credit performance and top deposit share Opera
Slide 23: Delivering Superior Financial Results Over Decades
Delivering Superior Financial Results Over Decades Earnings & Dividend Growth: 1999 – 2020 YTD 8% EPS CAGR 12% Dividend CAGR Q3 ’20 YTD 23
Slide 24: Appendix Q4 2020
Appendix Q4 2020
Slide 25: Loan Portfolio Composition
Loan Portfolio Composition Other investor-owned CRE includes healthcare, industrial, land and residential development loans. M&T’s loan portfolio is broadly diversified by asset class and geography; hotel and retail CRE ~9% of total loans Investor-Owned CRE Detail Total Investor-Owned CRE $30.5B NYC
Slide 26: Commercial Real Estate – Hotel and Retail
Commercial Real Estate – Hotel and Retail Portfolios are geographically diversified; New York City exposures have lower loan-to-value ratios than rest of portfolio Retail Hotel Geographic Concentration (Permanent and Construction) Portfolio(1) Characteristics Total NYC Total NYC LTV 53% 43% 57% 44%
Slide 27: Commercial Loan Modifications Update
Commercial Loan Modifications Update Commercial Loan Modifications ($, B) Hotel 72% 67% Retail 43% 24% All Other CRE and C&I 16% 4% Total Commercial 21% 9% All Other C&I and CRE Motor Vehicle Dealers Retail CRE Hotel CRE $14.0B $5.9B % Modified Remaining commercial loan modifications concentrated in
Slide 28: CRE Hotel Detail
CRE Hotel Detail Hotel – Permanent Investor-Owned (9/30/2020) Hotel – Construction (9/30/2020) Brand(2) Substantial equity and guarantor relationships, with limited exposure to luxury(1) categories and non-affiliated properties; NYC metrics stronger than overall portfolio 66% maturing 2023 and later
Slide 29: CRE Retail Detail
CRE Retail Detail Retail – Permanent Investor-Owned (9/30/2020) NYC metrics stronger than overall portfolio, supported by strong sponsorship and mixed-use properties with both retail and non-retail tenants Retail – Construction (9/30/2020) Property Type (1) Notes: LTV / LTC at origination. Deferral,
Slide 30: CRE Office Detail
CRE Office Detail Office – Permanent Investor-Owned (9/30/2020) Office – Construction (9/30/2020) Risk Mitigants Notes: LTV / LTC at origination. Deferral, criticized, and guaranteed percentages based on balances. NYC office rent collections shown improvement from ~85% in April to over 90% in Q3 Str
Slide 31: CRE Multifamily Detail
CRE Multifamily Detail Multifamily – Permanent Investor-Owned (9/30/2020) Multifamily – Construction (9/30/2020) Risk Mitigants NYC multifamily rent collections shown improvement from ~90% in April to ~95% in Q3 Majority of NYC multifamily exposure outside of Manhattan, where rents have remained com
Slide 32: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 33: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 34: M&T Peer Group
M&T Peer Group PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Huntington Bancshares Incorporated Zions Bancorporation, NA KeyCorp Truist Financial Corporation U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc. First Horizon Na