M&t Bank Corporation · NYSE:MTB
M&t Bank — Citigroup 2012 Financial Services Conference
33 slides from M&t Bank's conference presentation, Mar 8, 2012
Slide 1: Citigroup 2012 Financial Services Conference
Exhibit 99 Citigroup 2012 Financial Services Conference March 8, 2012
Slide 2: Disclaimer
Disclaimer This presentationcontainsforwardlookingstatementswithin the meaningof thePrivateSecuritiesLitigationReform Act giving the Company's expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by words such as "
Slide 3: Today's Agenda
Today’s Agenda Who is M&T Bank? 2011 Highlights Consistent, conservative operating philosophy Wilmington Trust Outlook 3
Slide 4: M&T Bank Corporate Profile
M&T Bank Corporate Profile Top 20 US-based full-service commercial bank holding company by assets and Top 15 by market cap Founded in 1856 $78 billion total assets 776 domestic branches and more than 2,000 ATMs 15,666 employees located in New York, Maryland, Pennsylvania, Washington, D.C., Virginia,
Slide 5: Recognition from Customers, Communities & Shareholders
Recognition from Customers, Communities & Shareholders Most honored bank in 2011 Greenwich Excellence Awards for Small Business Banking: 12 national awards and 2 regional awards Highest number of awards among all 750 banks rated by business customers Received the highest possible Community Reinvestm
Slide 6: Strong Presence In Our Communities
Strong Presence In Our Communities We lend in the markets where we live and work to people and enterprises whom we know #1 lead bank market share #1 Small Business Lender in:** among middle market clients in:* Baltimore Baltimore Binghamton Binghamton Buffalo Buffalo Philadelphia Harrisburg Rocheste
Slide 7: Summary of Full Year 2011 Results
Summary of Full Year 2011 Results 12% increase in diluted GAAP & Net Operating EPS Net operating return on tangible common equity of 17.96% Increased tangible book value per common share by 14% No secondary equity offering Consummated Wilmington Trust merger in May Expansion into new markets, encomp
Slide 8: Executed on 2011 Capital Plan
Executed on 2011 Capital Plan Retired $330 million of WT’s TARP preferred stock from US Treasury Redeemed additional $370 million of M&T’s TARP preferred stock Issued $500 million of 6.875% perpetual preferred stock to bolster Tier 1 capital Unchanged $2.80 per share dividend Built capital ratios wh
Slide 9: Key Ratios
Key Ratios 2006 2007 2008 2009 2010 2011 Net Interest Margin 3.70% 3.60% 3.38% 3.49% 3.84% 3.73% Superior (1) 51.51% 52.77% 54.35% 56.50% 53.71% 60.43% pre-credit Efficiency Ratio -Tangible (1) earnings Pre-tax, Pre-provision Earnings ($MM) 1,312 1,156 1,152 1,123 1,461 1,495 Strong Allowance to Loa
Slide 10: Consistent, Conservative Operating Philosophy
Consistent, Conservative Operating Philosophy Focus on return, not volume Solid underwriting Efficient provider of basic banking services Prudent capital allocation Disciplined approach to acquisitions Acquirer of choice - superior returns for our partners Owner-operators Management, employees & Boa
Slide 11: Disciplined margin management
Disciplined margin management M&T focuses on returns and relationships rather than volumes Net Interest Margin 4.5 4.25 4.0 4.01 3.73 3.5 3.58 3.0 2.5 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MTB Peer Median Note: Taxable Equivalent net interest margin used for M&T and for peer banks
Slide 12: Linked Quarter Loan Growth
Linked Quarter Loan Growth M&T has outperformed the industry through the credit cycle 4Q11 Linked Qtr Loan Growth Total Domestic Unnualized Industry MTB Commercial Loans 2.1% 2.5% 5.0% Res. Real Estate Loans 1.8% 10.3% 4.1% 4.0% Consumer Loans 1.3% -0.6% 4.0% 3.9% Total Loans & Leases 1.8% 2.9% 2.8%
Slide 13: Historical Credit Cycle: 1991 - 2011
Historical Credit Cycle: 1991 - 2011 4.50% 3.00% Nonaccrual Loans / Total Loans NCOs / Average Loans 2.75% 4.00% 2.59% 2.50% 3.50% 2.25% 3.00% 2.00% 2.68% 1.75% 2.50% 1.50% 2.00% 1.42% 1.83% 1.25% 1.83% 1.50% 1.00% 0.75% 0.67% 1.00% 0.47% 0.50% 0.50% 0.25% 0.00% 0.00% MTB Top 25 Median* MTB Top 25 M
Slide 14: Loss Experience Through Financial Crisis 3Q07 – 4Q11
Loss Experience Through Financial Crisis 3Q07 – 4Q11* 20% 17.5% Total Loans 12% Comm. Real Estate 15.7% 9.3% 9.1% 8.7% 8.5% 15% 9% 7.5% 7.1% 11.1% 10.4% Median 8.5% Median 5.9% 9.4% 9.1% 10% 8.0% 7.7% 6% 4.8% 7.0% 6.1% 4.1% 4.0% 3.8% 5.1% 2.8% 5% 3.1% 3% 0.6% 0% 0% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5
Slide 15: Balancing risk and rewards in lending
Balancing risk and rewards in lending Risk-Adjusted Net Interest Margin* 1998-2011 4.50% 3.96% 4.00% 3.50% 3.32% 3.78% 3.00% 2.52% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 MTB Peer Median *Reflects FTE Net Interest Income less Net Charge-offs as per
Slide 16: M&T's philosophy relies on efficiently delivering banking services
M&T’s philosophy relies on efficiently delivering banking services 2011 results influenced by Wilmington Trust and noteworthy 4Q items Efficiency Ratio 70% 64.33% 65% 60.43% 60% 56.28% Wilmington Trust 55% FDIC 52.25% Fee Regulation Credit Cycle 50% 45% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '1
Slide 17: Prudent Capital Allocation
Prudent Capital Allocation Cumulative Capital Retained, Dividends and Share Repurchases 1983 – 2011 Dividends Capital 31% Retained 35% Share Repurchases 34% 17
Slide 18: Net Operating Return on Tangible Common Equity – FY-2011
Net Operating Return on Tangible Common Equity – FY-2011 30% 23.8% 20% 18.0% 14.0% 13.2% 13.0% 12.0% Peer Median 10.9% 10.0% 10% 7.4% 4.7% 3.6% 0% Peer 1 MTB Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9Peer 10Peer 11 -1.7% -4.9% -10% Note: Excludes amortization of intangibles and goodwill
Slide 19: M&T's Acquisitions vs. Bank Deals > than $1B since 2000
M&T’s Acquisitions vs. Bank Deals > than $1B since 2000: Deal Value / Tangible Common Equity The M&T strategy: Value accrues to seller over time Total Returns to Date Since Acquisition Announcement* MTB Total BKX Total Acquistion Return Return Outperformance Wilmington Trust 9.0% 1.9% 7.2% Provident
Slide 20: Overview of Wilmington Trust Acquisition, May 2011
Overview of Wilmington Trust Acquisition, May 2011 M&T consummated Wilmington Trust merger May 2011 rd o Completed integration of core banking systems at end of 3 Quarter 2011 Compelling partnership: o Wilmington’s #1 market share in Delaware combined with M&T’s leading Mid-Atlantic commercial bank
Slide 21: Update on Wilmington Trust merger
Update on Wilmington Trust merger WT merger targets announced at acquisition – 11/1/10: High single-digit 2012 GAAP EPS accretion Low double-digit 2012 net operating EPS accretion Merger synergies about 15% of WT expense base - $80 million annualized by end of 2012 Update at Investor Conference - Se
Slide 22: Wilmington Trust is comprised of 2 Complementary Businesses
Wilmington Trust is comprised of 2 Complementary Businesses Corporate Client Services (CCS) Wealth Advisory Services (WAS) 2011 post–acquisition fee revenues - $119 million 2011 post-acquisition fee revenues - $87 million Four discrete business groups Two distinct customer segments: Corporate Trust
Slide 23: Outlook Consistent with Remarks on January earnings call
Outlook Consistent with Remarks on January earnings call One-time NIM expansion from 4Q11’s 3.60% as excess liquidity held at Fed over 2H11 has been deployed or withdrawn For FY2012, expect NIM slightly lower than FY2011’s 3.73% NIM outlook combined w/ mid-single digit loan growth implies growth in
Slide 24: Earnings & Dividend Growth: 1983 - 2011
Earnings & Dividend Growth: 1983 - 2011 M&T maintained its dividend and experienced no losses through the recent crisis $8.00 $7.00 6.55 $6.00 5.84 $5.00 $4.00 $3.00 2.80 2.80 $2.00 $1.00 $0.00 Dividends GAAP EPS Impact of Amortization and Merger-related expenses Note: Data prior to 1998 does not in
Slide 25: Strong Long-term Returns to Shareholders
Strong Long-term Returns to Shareholders Highest annual stock price appreciation among top 100 banks since 1983 19.3% annual total return since 1980 Highest total return among top 50 banks since 2000 th 19 highest return among top 50 banks in 2011 25
Slide 26: Citigroup 2012 Financial Services Conference
Citigroup 2012 Financial Services Conference March 8, 2012
Slide 27: M&T Bank Corporation… a solid investment
M&T Bank Corporation… a solid investment Of the largest 100 Among the banks operating in remaining, M&T st 1983, only 23 remain ranks 1 in stock today price growth Stock Closing Price at Return 2/29/2012 3/31/1983 CAGR 1 Rank Company Name Ticker ($) ($) (%) 1 M&T Bank Corporation MTB 81.62 1.34 15.3
Slide 28: M&T Bank Corporation… a solid investment
M&T Bank Corporation… a solid investment 19.3% Annual rate of return since 1980* nd – 22 best return of the entire universe of over 700 U.S. based stocks that have traded publicly since 1980 Rank Company Name Industry Annual Return 1 Eaton Vance Corp. Financials 25.1 2 Limited Brands Inc. Consumer D
Slide 29: Total Returns to Shareholders
(1) Total Returns to Shareholders Largest 50 banks by market capitalization as of January 1, 2000 (1) Total Return To Shareholder from 12/31/1999 to 12/31/2011, as sourced from Barclays Capital and SNL Financial. 29
Slide 30: Appendix
Appendix EN Mar Bank
Slide 31: 2011 Peer Group - Largest Regional Banks
2011 Peer Group - Largest 12 Regional Banks BB&T Corporation M&T Bank Corporation Capital One Financial Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Synovus Financial Corp. Huntington Bancshares Incorporated SunTrust Banks, In
Slide 32: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Net Income 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 $'s in millions Net income $268.2 $353.1 $456.7 $573.9 $722.5 $782.2 $839.2 $654.3 $555.9 $379.9 $736.2 $859.5 Intangible amortization* 56.1 99.4 32.5 47.8 46.1 34.7 38.5 40.5 40.5 39.
Slide 33: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 2006 2007 2008 2009 2010 2011 $'s in millions Average assets $ 55,839 $ 58,545 $ 65,132 $ 67,472 $ 68,380 $ 73,977 Goodwill (2,908) (2,933) (3,193) (3,393) (3,525) (3,525) Core deposit and other intangible assets (191) (221) (214) (191) (15
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