M&t Bank Corporation · NYSE:MTB
M&t Bank — BancAnalysts Association of Boston 2008 Conference
32 slides from M&t Bank's conference presentation, Nov 7, 2008
Slide 1: BancAnalysts Association of Boston 2008 Conference
BancAnalysts Association of Boston 2008 Conference November 7, 2008
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act giving the Company's expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words
Slide 3: M&T Bank Corporation - Overview
Top 20 US-based Bank Holding Company $8.6 billion market capitalization* $65 billion total assets 686 branches in seven states / District of Columbia 95% in NY, PA, MD Over 1,600 ATMs across retail bank footprint Over 1.8 million retail customers Over 150,000 commercial customers M&T Bank Corporatio
Slide 4: Today's Discussion
Today's Discussion M&T's Financial Performance Performance vs. Peers Operating Philosophy M&T - Well Positioned in the Current Environment
Slide 5: September 2008 YTD Summary
September 2008 YTD Summary ($ in millions, except per share data) 1) Excludes merger-related expenses and amortization expense associated with intangible assets. Intangible Amortization net of tax: Sep 2007 YTD = $30.8MM, Sep 2008 YTD = $31.0MM. Merger-related expenses net of tax: Sep 2008 YTD = $2.
Slide 6: M&T Bank Corporation - Key Ratios
M&T Bank Corporation - Key Ratios * * * * September 30, 2008 capital ratios are preliminary
Slide 7: Performance vs. Peers
Performance vs. Peers IX MaT Bank Corporation ”
Slide 8: Diluted Consensus EPS Growth Versus Peers
* 2008 EPS reflects full year 2008 FirstCall consensus estimates as of 11/5/08. Source: SNL Interactive, Bureau of Economic Analysis (GDP). M&T's 2008 performance moves it into top quartile of performance over the long term. Diluted Consensus EPS Growth Versus Peers EPS CAGR Through 2007 EPS Growth
Slide 9: Historical Performance: 10 year Per Share CAGR 1997-2007
Note: Per share balances used to compute growth rates. Source: SNL Interactive. Historical Performance: 10 year Per Share CAGR 1997-2007 Operating leverage and better credit performance has enabled M&T to outperform peers over the last 10 years.
Slide 10: Net Interest Margin (1998-2008)
Note: Taxable Equivalent net interest margin used for M&T and for peer banks when available. Source: SNL Interactive. Net Interest Margin (1998-2008) M&T's focus on returns & relationships rather than volumes allows it to maintain a slight advantage over the peer group.
Slide 11: Efficiency Ratio (1998-2008)
Note: Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets, merger-related expenses and other non-recurring expenses) as a percentage of fully taxable equivalent net interest income and non-interest revenues (excluding gains from securities
Slide 12: Capital is Important to M&T
Capital is Important to M&T Management's Interest aligned with Shareholders' Interests Over 50% Ownership between AIB, M&T Insiders and Warren Buffett Berkshire Hathaway- Warren Buffett M&T Management, Directors and Employees As of 2/28/08. Includes options & deferred bonus shares. 20.9% 6.1% AIB 24
Slide 13: Tangible Capital Generation Rate (2001-2008)
Tangible Capital Generation Rate (2001-2008) M&T's superior Tangible Capital Generation Rate helps absorb losses that might otherwise result in a costly (and dilutive) equity issuance. Rank #2 of 21 Banks* Tangible Capital Generation Rate = Operating Earnings after Dividends divided by Avg. Tangible
Slide 14: Tangible Common Equity to Tangible Assets (1998-2008)
Tangible Common Equity to Tangible Assets (1998-2008) M&T's high Capital Generation rate has enabled it to absorb credit and mark- to-market (FAS 115) losses while maintaining tangible capital. Ratio is computed as total equity less intangible assets and preferred stock as a % of total assets less i
Slide 15: Tier 1 Capital Ratio (2003-2008)
Tier 1 Capital Ratio (2003-2008) Despite lower earnings in a volatile environment, M&T's regulatory capital is as high as it's been in the past five years. * Preliminary *
Slide 16: Credit
Credit IX Mal Bank Corporation *
Slide 17: Historical Credit Cycle - Annual Trend, 1991-2008
Historical Credit Cycle - Annual Trend, 1991-2008 Source: SNL Interactive.
Slide 18: M&T's Well-Diversified Loan Portfolio - Q3 2008
M&T's Well-Diversified Loan Portfolio - Q3 2008 M&T's loan portfolio is not overly concentrated in any areas of current industry concern Through September 2008, 50.0% of M&T's Net Charge-offs came from the relatively limited Alt- A and Residential Const. & Dev. portfolios As of September 30, 2008
Slide 19: Consumer Loans - Net Charge Off Ratios
Consumer Loans - Net Charge Off Ratios Note: Computed from loan and net charge-off balances as reported in FRY9C. EOP loan balances used to compute average loan balances. NCO balances are as reported for Q1, Q2 and Q3 2008. NCO ratios for Q1, Q2 and Q3 2008 are annualized. Total Loan $ MM 4,597 Tota
Slide 20: Consumer Loans - 30-89 day Delinquency EOP Trend
Consumer Loans - 30-89 day Delinquency EOP Trend Note: Computed from loan and delinquency balances as reported in FRY9C. Total Loan $ MM 4,597 Total Loan $ MM 5,449 Total Loan $ MM 5,339 Alt A $ MM 971 % 18% Q308 Alt A exposure
Slide 21: HELOCs - MTB vs. Peers
HELOCs - MTB vs. Peers MTB's proportion of past due and still accruing* credits in the HELOC portfolio is significantly lower than the Peer and Largest 5 Medians. *Includes: 30-89 days Past Due and still accruing and 90+ days Past Due and still accruing. **Annualized EOP loan balances used to comput
Slide 22: Credit Ratios - Q3 2008
Credit Ratios - Q3 2008 M&T has the 3rd highest coverage ratio among peers while maintaining the 4th lowest ratio of net charge-offs to average loans. Rank #3/16 * Annualized NCOs reflect September 2008 YTD Rank #8/16 Rank #5/16 Rank #4/16
Slide 23: Credit - Current Trends
Credit - Current Trends Closely monitoring performance of the Mid-Atlantic builder construction portfolio Appraisals have been updated on most of the portfolio with continued deterioration in value reflected on land and finished lots as national homebuilders continue to renegotiate prices for lot ta
Slide 24: Investment Securities - Portfolio Composition
Investment Securities - Portfolio Composition Fair Value as of September 30, 2008 Includes HTM securities
Slide 25: Securities Governance
Securities Governance Evaluate MBS/CMO portfolio for expected lifetime losses for underlying mortgage collateral Compare to credit enhancement structured into the bond $2.2 billion of securities moved to Level 3 valuation from Level 2 as of September 30, 2008 Rely predominantly on values provided by
Slide 26: Summary - M&T Bank Corporation
Top quartile performance over long-term periods M&T's shareholder focused operating model has driven out- performance through the current economic cycle: 2nd highest Tangible Capital Generation Rate among peers 3rd highest Reserve Coverage Ratio 4th lowest Net Charge-off Ratio among peers Superior E
Slide 27: BancAnalysts Association of Boston 2008 Conference
BancAnalysts Association of Boston 2008 Conference November 7, 2008
Slide 28: Appendix
Appendix IN Mal Bank Corporation”
Slide 29: Reconciliation of GAAP and Non-GAAP Results of Operation
Reconciliation of GAAP and Non-GAAP Results of Operation * Excludes gain/(loss) on sale of securities.
Slide 30: Reconciliation of GAAP and Non-GAAP Results of Operation
Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 31: 2008 Peer Group Methodology
2008 Peer Group Methodology Pulled top 25 US-based bank holding companies by asset size on December 31, 2007 Eliminated the largest 5 due to asset size (Citigroup, Bank of America, JP Morgan, Wachovia, Wells Fargo) Eliminated the three trust banks due to dissimilar business mix (Bank of New York Mel
Slide 32: 2008 Peer Group
2008 Peer Group BB&T Corporation Capital One Financial Corporation Comerica Incorporated Fifth Third Bancorp First Horizon National Corporation Huntington Bancshares Incorporated KeyCorp M&qT Bank Corporation Marshall & Iisley National City Corporation PNC Financial Services Group, Inc. Regions Fina
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