M&t Bank Corporation · NYSE:MTB
M&t Bank — Lehman Brothers 2008 Financial Services Conference
33 slides from M&t Bank's conference presentation, Sep 8, 2008
Slide 1: Lehman Brothers 2008 Financial Services Conference
Lehman Brothers 2008 Financial Services Conference September 8, 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 $8.0 billion market capitalization* $66 billion total assets 685 branches in seven states / District of Columbia 96% in NY, PA, MD Over 1,600 ATMs across retail bank footprint Over 1.8 million retail customers Over 150,000 commercial customers M&T Bank Corporatio
Slide 4: Today's Discussion
Today's Discussion M&T's Financial Performance Performance vs. Peers Operating Philosophy M&T - Well Positioned in the Current Environment
Slide 5: June 2008 YTD Summary
June 2008 YTD Summary ($ in millions, except per share data) 1) Excludes merger-related expenses and amortization expense associated with intangible assets. Intangible Amortization net of tax: 1H2007 = $21.2MM, 1H2008 = $21.3MM. Merger-related expenses net of tax: 1H2008 = $2.2MM.
Slide 6: M&T Bank Corporation - Key Ratios
M&T Bank Corporation - Key Ratios
Slide 7: Performance vs. Peers
Performance vs. Peers EN MaT Bank Corporation ’
Slide 8: Diluted EPS Growth Versus Peers
Growth through 1H 2008 reflects weighted average quarterly growth. Weighted average quarterly growth is defined as the weighted average of: 1H 2008 Diluted GAAP EPS growth over 1H 2007 plus the CAGR for the most recent full- year periods. Weighting is based on the number of quarters in each period.
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 #1 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 capital is as high as it's been in the past five years.
Slide 16: Credit
Credit [EX Ma 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 - Q2 2008
M&T's Well-Diversified Loan Portfolio - Q2 2008 M&T's loan portfolio is not overly concentrated in any areas of current industry concern Through June 2008, 49.6% of M&T's Net Charge-offs came from the relatively limited Alt-A and Residential Const. & Dev. portfolios As of June 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 and Q2 2008. NCO ratios for Q1 and Q2 2008 are annualized. Total Loan $ MM 4,458 Total Loan $
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.
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 - Q2 2008
Credit Ratios - Q2 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 June 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 June 30, 2008 Includes HTM securities
Slide 25: Securities Governance
Securities Governance Pricing for >95% of securities from independent service $893 million of securities are priced using a Level 3 valuation as of June 30th Evaluate MBS/CMO portfolio for expected lifetime losses for underlying mortgage collateral Compare to credit enhancement structured into the b
Slide 26: Bayview Lending Group (BLG)
Bayview Lending Group (BLG) M&T's BLG investment equals $295mm as of 6/30/08 Market conditions have made securitization unviable since 1Q08 In response, BLG has: Reduced originations Scaled back its expense base Implemented contingent liquidity plan Expenses related to scaling back business (includi
Slide 27: Summary - M&T Bank Corporation
3rd best performance of the 21 largest bank holding companies June 2008 YTD, earning profits of $362.5 million* M&T's shareholder focused operating model has driven out- performance through the current economic cycle: Highest Tangible Capital Generation Rate among peers 3rd highest Reserve Coverage
Slide 28: Lehman Brothers 2008 Financial Services Conference
Lehman Brothers 2008 Financial Services Conference September 8, 2008
Slide 29: Appendix
Appendix EN Ma Bank Corporation”
Slide 30: 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 31: Reconciliation of GAAP and Non-GAAP Results of Operation
Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 32: 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 33: 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&T Bank Corporation Marshall & Ilsley National City Corporation PNC Financial Services Group, Inc. Regions Finan
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