M&t Bank Corporation · NYSE:MTB
M&t Bank — Investor Presentation (June 2023)
32 slides from M&t Bank's investor presentation, Jun 13, 2023
Slide 1: Investor Update | Second Quarter 2023
Investor Update | Second Quarter 2023 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer 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 Commission (“SEC”). Any statement that does not describe
Slide 3: M&T – A High Performing Community-Focused Bank
Top 15 U.S.-based, commercial bank holding company, with national capabilities from our suite of specialty businesses and Wilmington Trust Seasoned management team and deeply embedded culture Superior profitability and earnings and dividend growth over multiple economic cycles Decades of top quartil
Slide 4: The M&T Story: Our Operating Principles
The M&T Story: A High Performing Community-Focused Bank… ….Our Operating Principles Our People Operating Principles Mission Outcomes Talent & Capabilities Customers & Communities Ongoing insourcing of new capabilities Local Scale Credit Discipline Operating & Capital Efficiency Long-term and deep cu
Slide 5: Local Scale in Key Markets in M&T Footprint
Rank Buffalo 1 Rochester 1 Bridgeport 2 Baltimore 2 Hartford 2 New Haven 2 Boston 8 Philadelphia 9 Washington 11 New York 16 Contiguous Branch Footprint… …With Market Leading Franchises… Top 10 MSAs by Deposits Top Northeast Banks by Branches(1) Local Scale in Key Markets in M&T Footprint … and Dens
Slide 6: Key Ratios
Key Ratios Notes: (1) The Efficiency Ratio and Pre-provision Net Revenue are non-GAAP financial measures. The Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets and merger-related expenses) as a percentage of fully taxable-equivalent net
Slide 7: M&T's Business Model – Focus on Four Key Performance Indicators
M&T’s Business Model – Focus on Four Key Performance Indicators Note: All earnings annualized and operating except for PPNR. ROTCE, efficiency, and PPNR are non-GAAP measures and are reconciled in the appendix. Source: S&P Global Market Intelligence and company filings Net Interest Margin Operating
Slide 8: Solid Performance in Key Metrics against Peers
Solid Performance in Key Metrics against Peers Notes: All earnings annualized and operating except for PPNR. ROTCE, and efficiency, are non-GAAP measures and are reconciled in the appendix. Source: S&P Global Market Intelligence and company filings ROTCE % (ex-AOCI) 1Q23 Efficiency Ratio 1Q23 PPNR /
Slide 9: Key Areas of Focus
KeyAreas of Focus M&@ Bank Corporation
Slide 10: 2Q 2023 Trends
2Q 2023 Trends Notes: Excluding $226 million pre-tax gain from sale of Collective Investment Trust (“CIT”) business Excluding intangible amortization $17 million in 1Q23 and $15 million in 2Q23 Seasonal Customer Deposit Flows & Rate Sensitivity Acceleration Continues Second quarter outflows due in p
Slide 11: 2023 Outlook
2022 Actual 2023 Outlook Comments Income Statement Net Interest Income (Taxable Equivalent) $5.86 Billion $7.0 Billion to $7.2 Billion NII trending toward low end of the range, as cumulative deposit betas trend toward upper end of the high 30% to low 40% range Fee Income1 $2.23 Billion $2.25 Billion
Slide 12: Granular, Diversified Core Deposit Funding & Strong Liquidity Position
Granular, Diversified Core Deposit Funding & Strong Liquidity Position Granular Deposit Base 64% of deposits are insured or collateralized Average consumer deposit account balance is $13,000 Average business banking deposit account balance is $47,000 Diversified Deposit Base Deposits are spread acro
Slide 13: Local Scale Leads to Superior Deposit Franchise
Total Cost of Deposits Noninterest-bearing deposits represented 38% of 1Q 2023 average total deposits for M&T compared to 32% peer median 2002-1Q23 Average M&T 0.73% Peer Median 0.89% Difference -0.16% Noninterest Bearing Deposits / Total Deposits Local Scale Leads to Superior Deposit Franchise Sour
Slide 14: Diversified and Granular Deposit Base
Diversified and Granular Deposit Base Commercial & Other Deposits Retail Deposits Total commercial and business banking diversified geographically across Upstate NY (23%), Mid-Atlantic (9%), New England (12%), NYC area (16%), Greater Baltimore area (11%), Connecticut (9%), and other regions Commerci
Slide 15: Strong Core Funding and Liquidity
Strong Core Funding and Liquidity Liquidity Sources & Uninsured Deposits 3/31/2023 Liquidity Sources represent ~128% of Adjusted Uninsured Deposits Uninsured Deposits represent 43% of Total Deposits, 36% excluding Collateralized Deposits Average Cash Balances represent over 13% of Earning Assets Hig
Slide 16: Strong CRE Underwriting Track Record
Strong CRE Underwriting Track Record Long history and expertise in CRE lending Long-term relationships and consistent Credit Standards through economic cycles Two Chief Credit Officers over the past 40 years Diversified Loan Portfolio - CRE Concentration Decreasing The mix of C&I, CRE and Consumer l
Slide 17: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Loan Portfolio Composition 3/31/2023 Investor-Owned Real Estate % of Total Loans $133B Construction Permanent IRE Concentration has declined 5% since 2019
Slide 18: Superior Credit Losses Through Multiple Economic Cycles
Superior Credit Losses Through Multiple Economic Cycles NCO % of Loans Consistent credit standards through economic cycles Emphasis on secured lending: cash flow + collateral + guarantees Customer selection, supported by local market knowledge Working with customers to achieve best long-term outcome
Slide 19: Best-In-Class Credit NCO Ratios Across All Portfolios
Best-In-Class Credit NCO Ratios Across All Portfolios Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Source: S&P Global Market Intelligence and FRY9C. Note: Range measures the difference between the annual maximum and minimum for M&T a
Slide 20: Spotlight on Permanent IRE
Spotlight on Permanent IRE Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Most of our commercial real estate borrowers have “skin in the game,” which provides a buffer against potential future losses in these portfolios Weighted averag
Slide 21: Diversified and Low LTV Permanent Office CRE
Diversified and Low LTV Permanent Office CRE Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. % of Balances by LTV Range Geographic Detail Loan and Underlying Lease Maturity Profile Over 80% with LTV ≤ 70% Strong collateral coverage; ove
Slide 22: Permanent Office CRE Maturities Spread Out and Manageable
Permanent Office CRE Maturities Spread Out and Manageable Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. LTV Ranges for Upcoming Office Maturities Office maturities are spread relatively evenly over time with no upcoming ‘maturity bubb
Slide 23: Strong Capital and Low AOCI Impact
Strong Capital and Low AOCI Impact Top Quartile Core Capital Second highest CET1 ratio among peers (10.16%) Highest TCE ratio among peers (7.6%); more than 200 bps above peer median High Quality and Short Duration Securities Portfolio Agency MBS account for 46% of total and U.S. Treasury’s 30% AFS d
Slide 24: Diversified Securities Portfolio
Diversified Securities Portfolio Securities of $28.4B; 14% of total assets AFS-related AOCI represents only 0.2% potential impact on CET1 ratio Securities Portfolio Composition 3/31/2023 Duration Pretax Unrealized Loss AFS ~1.9 $355 Million HTM ~5.5 $997 Million Total Debt Securities ~4.0 $1,352 Mil
Slide 25: Strong Capital Levels Compared to Peers
Strong Capital Levels Compared to Peers Common Equity Tier 1 (CET1) Ratio 3/31/2023 Tangible Common Equity / Tangible Assets 3/31/2023 Capital levels favorable to peers both as reported and when considering potential impact of unrealized securities losses
Slide 26: Appendix
Appendix Z
Slide 27: A Bank for Communities & Making a Difference – Our ESG Commitment
A Bank for Communities & Making a Difference – Our ESG Commitment $638.4 million funded in renewable energy projects over the past three years $173.8 million in financing provided for renewable energy projects in 2021 18% reduction in our total electricity usage since 2017 21% reduction in Scope 1 a
Slide 28: Credit Ratings Summary
Credit Ratings Summary Fitch tings, M&T Bank Corporation Long-term Issuer/Senior debt rating AB BBB+ A A (high) ‘Subordinated debt rating a3 BBB A A Cumulative Trust preferred stock Baat BB+ BBB- A Non-cumulative Trust preferred stock Baa2 BB+ BBB- A ‘Non-cumulative perpetual preferred stock Baa2 BB
Slide 29: Fixed Income Maturity Schedule
Fixed Income Maturity Schedule
Slide 30: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Notes: Numbers may not foot due to rounding *Net of tax
Slide 31: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Notes: Numbers may not foot due to rounding
Slide 32: M&T Peer Group
M&T Peer Group PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Huntington Bancshares Incorporated Zions Bancorporation, NA KeyCorp Truist Financial Corporation U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc. First Horizon Na