M&t Bank Corporation · NYSE:MTB
M&t Bank — BancAnalysts Association of Boston Conference 2012
28 slides from M&t Bank's conference presentation, Nov 2, 2012
Slide 1: BancAnalysts Association of Boston Conference
Exhibit 99 BancAnalysts Association of Boston Conference November 2, 2012
Slide 2: Disclaimer
Disclaimer This presentationcontains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving M&T’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identifiedby words s
Slide 3: 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 $81 billion total assets 728 domestic branches and more than 2,000 ATMs 14,967 employees located in New York, Maryland, Pennsylvania, Washington, D.C., Virginia,
Slide 4: Today's Agenda
Today’s Agenda Financial Update Outlook / Hudson City Overview of M&T Bank 4
Slide 5: Financial Update
Financial Update EN M&T Bank 5
Slide 6: Strong 3Q12 Earnings Results
Strong 3Q12 Earnings Results GAAP Earnings 2006 2007 2008 2009 2010 2011 1Q12 2Q12 3Q12 Net Income ($MM) 839 654 556 380 736 859 206 233 293 EPS ($ per share) 7.37 5.95 5.01 2.89 5.69 6.35 1.50 1.71 2.17 Net Operating Earnings Net Operating Income ($MM) 881 704 599 455 755 884 218 247 302 Net Operat
Slide 7: Strong 3Q12 Earnings Results (continued)
Strong 3Q12 Earnings Results (continued) Average loans up 10% annualized from 2Q12 • Includes 10% annualized growth in C&I loans • Residential real estate loans up by $1.1 billion End-of-period loans up 8% annualized from 2Q12 Average core deposits increased an annualized 9% from 2Q12 7
Slide 8: Key Ratios
Key Ratios 2006 2007 2008 2009 2010 2011 1Q12 2Q12 3Q12 3Q'12 YTD Net Interest Margin 3.70% 3.60% 3.38% 3.49% 3.84% 3.73% 3.69% 3.74% 3.77% 3.73% Superior (1) Efficiency Ratio -Tangible 51.51% 52.77% 54.35% 56.50% 53.71% 60.43% 61.09% 56.86% 53.73% 57.11% pre-credit (1) earnings Pre-tax, Pre-provisi
Slide 9: M&T Faring Well Against Industry Headwinds
M&T Faring Well Against Industry Headwinds Loan growth H8 growth - slow to moderate; M&T aided by Upstate NY opportunity Net interest NIM pressures persist; M&T stable margin Fee revenue Refi-driven mortgage strength; M&T benefiting from Wilmington Trust & mortgage servicing Credit Stabilizing; M&T
Slide 10: Offsets to Margin Pressures from Low Rates
Offsets to Margin Pressures from Low Rates 4.5 4.23 4.0 4.01 3.73 3.74 3.77 3.69 3.5 3.59 3.58 3.52 3.54 3.0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 1Q'12 2Q'12 3Q'12 MTB Peer Median 10
Slide 11: Disclosures on Acquired Loans in 10-K & 10-Q
Disclosures on Acquired Loans in 10-K & 10-Q 1 Accretable Difference Rollforward ($ millions) 2011 1Q12 2Q12 3Q12 Balance at beginning of period $ 457 $ 839 $ 770 $ 789 Additions 688 - - - Interest Income (295) (81) (90) (87) Reclassified from (to) nonaccretable balance, net 11 - 140 - Other (22) 12
Slide 12: Wilmington Trust & Near-term Mortgage Strength Bolster Fees
Wilmington Trust & Near-term Mortgage Strength Bolster Fees Components of Fee Income 1Q11 3Q11 3Q12 • Significant increase Trust and Wealth in contribution from Management 15% Trust/Investments 24% 34% 22% 29% Service Fees 32% • Reduces reliance on businesses Mortgage 10% facing regulatory 38% 24% r
Slide 13: Wilmington Trust cost synergies / mortgage strength mitigate increased environment costs
Wilmington Trust cost synergies / mortgage strength mitigate increased environment costs Efficiency Ratio 70% 65.02%65.32% 65% 62.70% 61.09% 57.78% 60% 56.86% 55% 53.73% 51.53% 50% 45% '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 1Q122Q123Q12 MTB Peer Median The Efficiency Ratio is a non-GAAP financi
Slide 14: M&T's Credit Metrics are Best-in-Class
M&T’s Credit Metrics are Best-in-Class NCOs%of AvgLoans– 3Q’12 ReserveCoverage ofNCOs(inyears)– 3Q’12 2.5 7.0 6.0 6.0 5.5 1.95 2.0 1.74 5.0 1.60 1.5 1.36 3.8 4.0 3.1 3.1 1.08 1.00 3.0 Peer Median 0.93 1.0 0.85 0.74 2.0 2.0 Peer Median 2.0 0.72 1.9 2.0 1.7 1.5 0.5 0.39 0.42 1.1 1.1 0.26 1.0 0.0 0.0 M
Slide 15: Outlook / Update on Hudson City Merger
Outlook / Update on Hudson City Merger 15
Slide 16: Outlook Consistent with Remarks on October earnings call
Outlook Consistent with Remarks on October earnings call Expect stable NIM over remainder of 2012 • FY 2012 NIM (3.73%) consistent with FY 2011 Loan pipeline (ex. Mortgage) remains healthy • Resumed sale of mortgage originations in 3Q12 Mortgage originations for sale remain strong over near term Exp
Slide 17: Update on Hudson City merger
Update on Hudson City merger Submitted regulatory applications Draft S-4/Registration Statement filed with SEC Meetings with counterparts at HCBK to plan integration Have begun recruiting commercial bankers for NJ footprint 17
Slide 18: Overview of M&T Bank
Overview of M&T Bank EN M&T Bank 18
Slide 19: 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 $81 billion total assets 728 domestic branches and more than 2,000 ATMs 14,967 employees located in New York, Maryland, Pennsylvania, Washington, D.C., Virginia,
Slide 20: M&T: A "Super-Community Bank"
M&T: A “Super-Community Bank” Our approach is simple: We provide banking services in communities where we live and work We focus on carefully underwritten lending, based on local knowledge We take a prudent approach to acquisitions – we grow when and where it makes sense We view our long-tenured and
Slide 21: Commitment to Our Communities
Commitment to Our Communities Charitable Giving Donated more than $147 million to community-based organizations over the past 10 years Community Investment Earned highest possible Community Reinvestment Act rating on every exam since 1982 Volunteerism In the first half of 2012, over 3,600 M&T employ
Slide 22: 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 market share for lead bank #1 Small Business Administration relationships Lender in: among middle market clients in: (1) Baltimore Baltimore Binghamton Binghamton Buffalo Buffal
Slide 23: A History of Above-Average Shareholder Returns
A History of Above-Average Shareholder Returns Our “super-community bank” model is validated through our long-term results M&T has been profitable in every quarter of the last 36 years – 145 consecutive quarters Since 1983, when Chairman Robert Wilmers came to M&T, achieved compound annual growth in
Slide 24: BancAnalysts Association of Boston Conference
BancAnalysts Association of Boston Conference November 2, 2012
Slide 25: Appendix
Appendix IN MaiT Bank
Slide 26: 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 1Q12 2Q12 3Q12 2012 YTD $'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 $206.5 $233.4 $293.5 $733.3 Intangible amortizati
Slide 27: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 2006 2007 2008 2009 2010 2011 1Q12 2Q12 3Q12 2012 YTD $'s in millions Average assets $ 55,839 $ 58,545 $ 65,132 $ 67,472 $ 68,380 $ 73,977 $ 78,026 $ 80,087 $ 80,432 $ 79,518 Goodwill (2,908) (2,933) (3,193) (3,393) (3,525) (3,525) (3,525)
Slide 28: Important Additional Information
Important Additional Information In connection with the Merger, M&T Bank Corporation (“M&T”) filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 15, 2012 a Registration Statement on Form S-4 that includes a preliminary Joint Proxy Statement of M&T and Hudson City Bancorp, I
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