M&t Bank Corporation · NYSE:MTB
M&t Bank — Barclays Capital 2009 Global Financial Services Conference
36 slides from M&t Bank's conference presentation, Sep 16, 2009
Slide 1: Barclays Capital 2009 Global Financial Services Conference
Barclays Capital 2009 Global Financial Services Conference September 16, 2009
Slide 2: Disclaimer
2 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 wor
Slide 3: M&T Bank Corporation - Overview
3 Top 20 US-based commercial bank holding company by assets and Top 15 by market cap* $70 billion total assets 832 branches in seven states / District of Columbia 92% in NY, PA, MD 7% in VA Over 1,900 ATMs across retail bank footprint Over 2 million retail customers Over 190,000 commercial customers
Slide 4: M&T's Culture - Understanding what's important
4 M&T's Culture - "Understanding what's important." For more than 150 years, M&T Bank has delivered on our promise of "Understanding what's important" by building deep, long-lasting relationships with our customers and by investing in our communities. Focused on long term shareholder returns Conserv
Slide 5: Focus on Long Term Shareholder Returns
5 Focus on Long Term Shareholder Returns 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 2/27/09. Includes options & deferred bonus shares. 21.4
Slide 6: M&T's Core Foundation is Stability
M&T Bank average employee tenure (as of 7/6/09): 9.9 years M&T Bank average tenure of employees with >1 yr service: 10.9 years vs. US Dept. of Labor financial services industry average tenure: 4.7 years 6 M&T's Core Foundation is Stability... Management Group average tenure: 21.5 years Senior Vice P
Slide 7: Advantages of M&T's Community Bank Model
7 Keep decisions close to customer Regional President represents the face of M&T in the market and helps position M&T as a local bank Allows for flexibility in approach to the market Specific product expertise is structured centrally, but delivered locally RM brings the resources of a major regional
Slide 8: Provident Acquisition: Growing When and Where it Makes Sense
8 Provident Acquisition: Growing When and Where it Makes Sense
Slide 9: Bank Acquisitions Since 2000: Deal Value/Tangible Equity
Deal Value at Announcement and Tangible Equity at Most Recent Quarter before Announcement Although Provident was less than $1.0 Billion in Deal Value, it has been included for reference Source: SNL Financial Median: 3.03 Bank Acquisitions Since 2000: Deal Value/Tangible Equity
Slide 10: Proven Integration Process
10 Proven Integration Process Announcement Date Dec 19 May 26 Apr 8 Mar 9 Mar 17-27 Provident Branches open as M&T Branches Market Survey Results Presentation Employee Town Hall Meetings Provident Shareholder Approval Apr 20 - 24 Regulatory Approval May 11 Mock Technology Conversion We successfully
Slide 11: Accelerating Mid-Atlantic growth momentum with the Provident acquisition
Accelerating Mid-Atlantic growth momentum with the Provident acquisition 2003 2004 Allfirst Acquisition 11 2009 Created the largest branch network in the area and the second-largest deposit share in Maryland Increased Commercial market share Gained entry into central Virginia Exceeding due diligence
Slide 12: Market Comparison: Upstate vs. Maryland
As a result of the Provident acquisition, M&T now has a similar presence in MD as it does in Upstate New York, with a #1 branch share and #2 deposit share However, the MD area offers a larger, wealthier and faster growing population with more business opportunities. As a result, M&T has made MD a fo
Slide 13: Opportunity in the Community Bank Model
13 Opportunity in the Community Bank Model Opportunity Opportunity * Data reflects Western New York vs. Baltimore/Greater Washington regions Opportunity
Slide 14: H1 2009 Results
H1 2009 Results EX Mga Bank Corporation x
Slide 15: Financial Overview
15 Financial Overview Profitable in every quarter of the last 33 years Expenses were contained Deposits continued to grow Credit costs held up well on a relative basis Successfully closed and converted Provident Challenging macroeconomic climate continued Experienced weak loan demand
Slide 16: June 2009 YTD Summary
16 June 2009 YTD Summary ($ in millions, except per share data) 1) Excludes merger-related expenses and amortization expense associated with intangible assets. Intangible Amortization net of tax: 2008 YTD = $21.3MM, 2009 YTD = $18.6MM. Merger-related expenses net of tax: 2008 YTD = $2.2MM, 2009 YTD
Slide 17: Key Ratios
17 Key Ratios 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 se
Slide 18: Net Interest Margin vs. peer group
18 M&T's focus on returns and relationships rather than volumes allows it to maintain a slight advantage over the peer group Note: Taxable Equivalent net interest margin used for M&T and for peer banks when available. Net Interest Margin %
Slide 19: Core Customer Deposits to Total Loans: MTB vs Peers
19 Core Customer Deposits to Total Loans: MTB vs Peers Core Deposits = Total Domestic Deposits less Time Deposits greater than $100,000, per regulatory filings. Source: SNL Interactive. M&T is taking deposit share across its footprint
Slide 20: Credit Quality vs. Peer Banks
20 Credit Quality vs. Peer Banks
Slide 21: Nonaccrual and NCO ratios vs. peers
21 Historically, M&T's Nonaccrual ratio has closely tracked the peer median. However, there is a favorable divergence in the current cycle Historically, M&T's NCO ratio has been lower than the peers. The out-performance is even more pronounced in the current cycle Source: SNL Interactive. FR Y9C dat
Slide 22: Loan Mix and Credit Quality - June 2009 YTD
22 Loan Mix and Credit Quality - June 2009 YTD Source: SNL Interactive. FR Y9C data used. M&T's stable geographic footprint and conservative underwriting has resulted in one of the lowest loss rates in most loan categories........ .....and among the lowest overall delinquency rates (pipeline for pot
Slide 23: Commercial Credit Quality vs Peers
23 Commercial Credit Quality vs Peers Source: SNL Interactive. FR Y9C data as of June 30, 2009. MTB's CRE concentration has remained stable as the industry has ramped up exposure Peers have grown CRE concentrations 3x more than MTB over the last 10 years Disciplined credit underwriting with a focus
Slide 24: Consumer Credit Quality vs Peers
24 Consumer Credit Quality vs Peers Source: SNL Interactive. FR Y9C data as of June 30, 2009.
Slide 25: M&T's geographies and underwriting are keys to out-performance
25 M&T's geographies and underwriting are keys to out- performance HPI decline in M&T footprint significantly lower than national average Limited exposure to highly stressed markets of Florida, California, Nevada and Arizona Early intervention in stressed asset classes Reduced originations in 2005 &
Slide 26: MTB: A Solid Investment
MTB: A Solid Investment EN Ma Bank Corporation 2s
Slide 27: M&T Bank Corporation... a solid investment
27 M&T Bank Corporation... a solid investment Nearly 18% annual growth in operating earnings per share since 1983 >16% annualized total return to shareholders since 1983* MTB's stock has outperformed the Standard & Poor's Bank Index by 17%, 30% and 89% over the past 3, 5 and 10-year periods, respect
Slide 28: Diluted EPS Growth Versus Peers
28 Note: FITB's June 2009 YTD earnings are adjusted to exclude the gain on sale of its processing business. Source: SNL Interactive, Bureau of Economic Analysis (GDP). M&T's recent performance has moved it into top quartile of performance over the long term Diluted EPS Growth Versus Peers EPS CAGR T
Slide 29: Of the largest banks operating in 1983, only some remain today
29 Of the largest 100 banks operating in 1983, only 25 remain today M&T Bank Corporation... a solid investment Among the remaining, M&T ranks 2nd highest in stock price growth
Slide 30: Appendix
Appendix EX Ma Bank Corporation 30
Slide 31: Reconciliation of GAAP and Non-GAAP Results of Operation
31 Reconciliation of GAAP and Non-GAAP Results of Operation * Excludes gain/(loss) on sale of securities.
Slide 32: Reconciliation of GAAP and Non-GAAP Results of Operation
32 Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 33: Private Sector Employment Growth in the M&T Footprint
Private Sector Employment Growth in the M&T Footprint YoY % Change United States M&T Footprint NYS, Central PA, Philadelphia, Maryland, D.C. and NoVa - -5.1% July 2007 1.2% Although employment losses in the M&T footprint have accelerated sharply since the third quarter of 2008, the rate of decline r
Slide 34: Existing Home Price Appreciation - Q1 2009
34 Existing Home Price Appreciation - Q1 2009 Source: Federal Housing Finance Agency. The FHFA "all-transactions" index tracks average house price changes in repeat sales or re-financings of the same single- family properties based on data obtained from Fannie Mae and Freddie Mac for conventional, c
Slide 35: 2009 Peer Group - Largest Regional Banks
35 2009 Peer Group - Largest 15 Regional Banks
Slide 36: Barclays Capital 2009 Global Financial Services Conference
Barclays Capital 2009 Global Financial Services Conference September 16, 2009
M&T Bank — Barclays Capital 2009 Global Financial Services Conference on 6ix