M&t Bank Corporation · NYSE:MTB
M&t Bank — Investor Presentation (December 2024)
40 slides from M&t Bank's investor presentation, Dec 10, 2024
Slide 1: Investor Update 4th Quarter 2024
Investor Update 4th Quarter 2024 DECEMBER 2024 Exhibit 99.1
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 the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the Securities and Exchange Commissio
Slide 3: Purpose, Mission and Operating Principles
3 Purpose Mission Operating Principles Local Scale Credit Discipline Operating & Capital Efficiency
Slide 4: Focused on Four Priorities
Focused on Four Priorities 4 Build our New England and Long Island Markets Optimize our Resources through Simplification Make our Systems and Processes Resilient and Scalable Continue to Develop and Scale our Capability to Manage Risk We continue our mission to simplify M&T and make investments that
Slide 5: Invested In and Investing In Technology
Invested In and Investing In Technology 5 Secure Protect the bank from cyber threats Risk Exceed expectations of our internal and external stakeholders Available & Reliable Keep critical technology available and reliable for the bank Tech Lifecycle Mgmt Maintain a current, supported software and har
Slide 6: Making a positive impact on our communities, customers, and colleagues
Making a positive impact on our communities, customers, and colleagues Fostering Prosperity in Our Communities Investing in Our Employees Strong Governance and Consistent Leadership Preserving our Environment Sustainability Accomplishments and Highlights (1) Following the criteria for independence r
Slide 7: Key Awards and Accolades
7 J.D. Power 2024 U.S. Banking Mobile App Satisfaction Study; among banks with $70B to $200B in deposits. Visit jdpower.com/awards for more details. Key Awards and Accolades
Slide 8: Diversified Business Model
Diversified Business Model Experienced teams provide a wide-range of credit, liquidity and capital markets solutions to meet our customer needs, delivered through a local engagement model and industry expertise on a national scale. Strategically built for the communities in which we operate. High-to
Slide 9: Local Scale in Key Markets
Local Scale in Key Markets 9 Source: S&P Global Market Intelligence, FDIC Summary of Deposits (1) Top banks and thrifts by number of branches in Northeast / Mid-Atlantic regions (CT, DC, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV). M&T as of 10/25/2024, excludes two domestic branches outside of
Slide 10: Through the Cycle Profitability Advantage
Through the Cycle Profitability Advantage… 10 Note: (1) See Appendix 1 and 2 for reconciliation of GAAP with these non-GAAP measures. 1.32% 1.33% 1.36% 1.04% 1.16% 1.17% 20-Years 2004-2023 10-Years 2014-2023 5-Years 2019-2023 Net Operating ROTA(1) Better than Peer PPNR Generation & Credit Losses • A
Slide 11: Combined with Consistent Growth
$21.97 $98.54 $- $20 $40 $60 $80 $100 $120 2003 2008 2013 2018 2023 $1.20 $5.20 $- $1 $2 $3 $4 $5 $6 2003 2008 2013 2018 2023 …Combined with Consistent Growth Dividend Per Share Tangible Book Value Per Share MTB: 7.6% CAGR Peer Median: 1.3%CAGR MTB: 7.8% CAGR Peer Median: 1.5% CAGR 10.5% 10.0% 11.9%
Slide 12: Superior Pre-Credit Earnings
2019 2020 2021 2022 2023 3Q24 YTD Superior Pre-Credit Earnings Net Interest Margin 3.84% 3.16% 2.76% 3.39% 3.83% 3.58% Efficiency Ratio (1) 55.7% 56.3% 59.0% 56.6% 54.9% 57.0% PPNR ($, Millions) (1) $2,753 $2,579 $2,445 $3,471 $4,232 $2,940 PPNR to RWA (1) 2.7% 2.4% 2.3% 2.7% 2.8% 2.5% Strong Credit
Slide 13: Solid Performance in Key Metrics against Peers
Solid Performance in Key Metrics against Peers 13 ROTA(1) 3Q24 Net Interest Margin 3Q24 Efficiency Ratio(1) 3Q24 PPNR / RWA(1) 3Q24 NCO / Loans 3Q24 Note: (1) See Appendix 1 and 2 for reconciliation of GAAP with these non-GAAP measures. Source: S&P Global Market Intelligence and company filings 1.45
Slide 14: M&T Bank Corporation
M&& Bank Corporation | 14
Slide 15: 4Q24 Outlook
4Q24 Outlook Comments In c o m e S ta te m e n t Net Interest Income Taxable-equivalent $1,730 million +/- • NIM in the high 3.50’s – from stronger deposit growth and softer loan growth Fee Income Excluding Notable Items: $610 million +/- Including Notable Items: $625 million +/- • Continued strengt
Slide 16: Effectively Neutral Asset Sensitivity
Effectively Neutral Asset Sensitivity (1) Represents estimated impact on NII resulting from a parallel shift in interest rates during first modeling year. Sensitivity of NII to Changes in Interest Rates1 $, Millions • Increased mix of fixed liquid assets Y/Y • Investment securities up $5.0B to $32.3
Slide 17: Swap Portfolio Details
Swap Portfolio Details 17 ▪ Rates for 2025 forward-starting swaps are higher than current active swap rates resulting in higher active receive rates in 2025 ▪ CF Hedges – executed $10.0B of forward-starting receive fix swaps YTD1: weighted average start December 2025, ~3.72% ▪ FV Debt Hedges – execu
Slide 18: Fee Income Diversification
Fee Income Diversification 18 • Consistent growth in noninterest income over past year • Noninterest income growth more than offset foregone noninterest income from M&T Insurance Agency (4Q22) and Collective Investment Trust (2Q23) sales • Total noninterest income of 26% of total revenue(2) is lower
Slide 19: Granular, Diversified Core Deposit Funding & Strong Liquidity Position
Granular, Diversified Core Deposit Funding & Strong Liquidity Position Granular Deposit Base Diversified Deposit Base Stable & Long-Tenured Relationships Strong Liquidity Profile • 61% of deposits are insured or collateralized as of 9/30/2024 • Average consumer deposit account balance is $14,000 • A
Slide 20: Local Scale Leads to Superior Deposit Franchise
0.14% 0.11% 0.11% 0.08% 0.04% 0.00% 0.00% -0.01% -0.01% -0.01% -0.02% -0.04% Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 MTB Peer 1 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0
Slide 21: Diversified and Granular Deposit Base
Diversified and Granular Deposit Base • Diversified across industries and geographies • Average relationship tenure of 16 years • Average account size $4MM; median $384k • ~58% operating balances Average Deposits 3Q24 Institutional Services & Wealth Management Retail Bank Commercial Bank • Consists
Slide 22: Strong Core Funding and Liquidity
• Liquidity Sources represent ~134% of Adjusted Uninsured Deposits as of 9/30/2024 • Uninsured Deposits represent 45% of Total Deposits, 39% excluding Collateralized Deposits as of 9/30/2024 • 3Q24 Average Cash Balances represent 13% of Earning Assets Strong Core Funding and Liquidity Liquidity Sour
Slide 23: Strong CRE Underwriting Track Record
Strong CRE Underwriting Track Record All information presented as of 9/30/2024 Long History & Expertise in CRE Lending • Long-term relationships and consistently conservative Credit Standards through economic cycles • Two Chief Credit Officers over the past 40 years Diversified Loan Portfolio • 45%
Slide 24: Well Diversified Loan Portfolio
Multifamily $6.3B, 5% Retail $5.0B, 4% Office $4.4B, 3% Healthcare $2.3B, 2% Hotel $2.1B, 2% Industrial & Other $2.2B, 2% Construction $6.3B, 5% C&I - Owner Occ. $11.0B, 8% C&I $50.0B, 37% Cons. Real Estate $23.0B, 17% Consumer $23.2B, 17% Permanent CRE $22.4B, 16% Well Diversified Loan Portfolio (1
Slide 25: Superior Credit Losses Through Multiple Economic Cycles
Source: S&P Global Market Intelligence and FRY9C. Note: Industry data represents all FDIC-insured institutions from the FDIC’s Quarterly Banking Profile (“QBP”). Average, max, and range are weighted FY1990-FY2023. Superior Credit Losses Through Multiple Economic Cycles M&T Credit Philosophy NCO % of
Slide 26: Spotlight on Permanent IRE
Spotlight on Permanent IRE • Hallmark of structures requires material upfront ‘skin in the game’ to ensure alignment and provide a buffer against potential future losses • Weighted-average LTV is 55%; approximately 85% of the total Permanent IRE portfolio has an LTV of 70% or less • Approximately 72
Slide 27: Diversified and Low LTV Permanent Office CRE
Diversified and Low LTV Permanent Office CRE (1) Lease maturity data for loans with >$10MM in exposure. Balance ($, B) % of Total Loans WAVG LTV New York City $0.6 0.4% 49% Greater Boston $0.5 0.4% 84% Connecticut $0.4 0.3% 52% New Jersey $0.3 0.2% 64% Western New York $0.3 0.2% 60% VT/NH/ME $0.3 0.
Slide 28: Credit Metrics
Credit Metrics Nonaccrual Loans Net Charge-offs Provision for Credit Losses Allowance for Credit Losses 28 $150 $225 $200 $150 $120 3Q23 4Q23 1Q24 2Q24 3Q24 $ I N M IL L IO N S $96 $148 $138 $137 $120 0.29% 0.44% 0.42% 0.41% 0.35% 3Q23 4Q23 1Q24 2Q24 3Q24 $ I N M IL L IO N S NCO ($) Net Charge-off R
Slide 29: Criticized C&I and CRE Loans
Criticized C&I and CRE Loans Criticized loans decreased -$1.2 billion QoQ: • C&I decreased -$315 million – Driven predominantly by motor vehicle and recreational finance dealers and manufacturing • CRE decreased -$831 million – Permanent CRE -$525 million – Construction -$306 million • 96% of critic
Slide 30: Strong Capital and Low AOCI Impact
Strong Capital and Low AOCI Impact • Top quartile CET1 ratio among peers (11.5%) • Top quartile TCE ratio among peers (8.8%); nearly 200 bps above peer median • Agency MBS/CMBS account for 61% of total and U.S. Treasurys 27% • AFS duration ~2.3 years and HTM duration ~5.2 years, total debt securitie
Slide 31: Diversified Securities Portfolio
Agency MBS $14.6B US Treasury $8.9B Agency CMBS $5.2B Municipal Bonds $2.4B Other Debt Sec. $0.1B Equity & Other $1.1B Diversified Securities Portfolio (1) Mortgage securities include estimated prepayment under market forward interest rates. $32B Securities Portfolio Composition 9/30/2024 • Securiti
Slide 32: Strong Capital Levels Compared to Peers
5.6% 5.7% 6.2% 6.4% 6.5% 6.9% 6.9% 7.3% 8.0% 8.0% 8.6% 8.8% Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 MTB Strong Capital Levels Compared to Peers • Capital levels favorable to peers both as reported and when considering AOCI • Modest impact from including AOCI in
Slide 33: Why invest in M&T?
Why invest in M&T? • Long term focused with deeply embedded culture • Business operated to represent the best interests of all key stakeholders • Energized colleagues consistently serving our customers and communities • A safe haven for our clients as proven during turbulent times and crisis • Exper
Slide 34: Appendices
Appendices M&f& Bank Corporation | 24
Slide 35: GAAP to GAAP - Adjusted (Non-GAAP) Reconciliation
Appendix 1 Note: M&T is providing supplemental reporting of its results on a “GAAP – Adjusted” basis, from which M&T excludes the after-tax effect of certain notable items of significance. Although “GAAP – Adjusted” income as presented by M&T is not a GAAP measure, M&T’s management believes that thi
Slide 36: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix 2 Note: M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit and other intangible asset balan
Slide 37: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix 2 GAAP to Net Operating (Non-GAAP) Reconciliation 37 In millions 2019 2020 2021 2022 2023 3Q24 YTD 3Q23 2Q24 3Q24 Efficiency ratio Noninterest expense $3,469 $3,385 $3,612 $5,050 $5,379 $3,996 $1,278 $1,297 $1,303 Less: Amortization of core deposit and other intangible assets 19 15 10 56 62
Slide 38: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation 38 In millions 2019 2020 2021 2022 2023 3Q24 YTD 3Q23 2Q24 3Q24 Average assets Average assets $119,584 $135,480 $152,669 $190,252 $205,397 $211,008 $205,791 $211,981 $209,581 Goodwill (4,593) (4,593) (4,593) (7,537) (8,473) (8,465) (8,465) (8,465
Slide 39: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation 39 In millions 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 9/30/2023 6/30/2024 9/30/2024 Total assets Total assets $119,873 $142,601 $155,107 $200,730 $208,264 $209,124 $208,855 $211,785 Goodwill (4,593) (4,593) (4,593) (8,490) (8,465)
Slide 40: M&T Peer Group
M&T Peer Group PNC Financial Services Group, Inc.Comerica Incorporated Regions Financial CorporationFifth Third Bancorp Huntington Bancshares Incorporated Zions Bancorporation, NAKeyCorp Truist Financial Corporation U.S. Bancorp M&T Bank CorporationCitizens Financial Group, Inc. First Horizon Nation