M&t Bank Corporation · NYSE:MTB
M&t Bank — Q3 2024 Earnings Presentation
27 slides from M&t Bank's earnings presentation, Oct 17, 2024
Slide 1: Earnings Results 3rd Quarter 2024
Earnings Results 3rd Quarter 2024 October 17, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of continued availability of financing; financial resources in the amounts, at the times and on the terms required to support
Slide 3: Purpose, Mission and Operating Principles
Purpose Mission To make a difference We are a bank for communities – in people’s lives. committed to improving the lives of our customers and all the communities we touch. Operating Principles Local Scale Credit Discipline Operating & Capital Efficiency 3 3
Slide 4: Making a positive impact on our communities, customers, and colleagues
Making a positive impact on our communities, customers, and colleagues Sustainability Accomplishments and Highlights Fostering Prosperity in Our Communities Investing in Our Employees • Ranked #6 SBA Lender in the country (FY2023), the 16th consecutive year among the nation’s top 10 SBA • 412 people
Slide 5: Key Awards and Accolades
Key Awards and Accolades Commerce Magazine - Companies That Care #1 in Customer Satisfaction with Mobile Banking Apps among Regional Banks Association for Talent Development J.D. Power 2024 U.S. Banking Mobile App Satisfaction Study; among banks with $70B to $200B in deposits. Visit jdpower.com/awar
Slide 6: Financial Results
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Slide 7: Third Quarter 2024 Earnings Highlights
Third Quarter 2024 Earnings Highlights GAAP Notable items ($ in millions, except per share) 3Q24 2Q24 3Q23 ($ in millions, except per share) 3Q24 2Q24 3Q23 Revenues $2,332 $2,302 $2,335 Amt EPS Amt EPS Amt EPS Noninterest Expense $1,303 $1,297 $1,278 Discrete Tax Benefit(1) $14 $0.08 $— $— $— $— Pro
Slide 8: Third Quarter 2024 Earnings Highlights (Net Operating)
Third Quarter 2024 Earnings Highlights Net Operating Results (Non-GAAP)(1) ($ in millions, except per share) 3Q24 2Q24 3Q23 Net Operating Income $731 $665 $702 Diluted Net Operating EPS $4.08 $3.79 $4.05 Efficiency Ratio 55.0% 55.3% 53.7% Net Operating ROTA 1.45% 1.31% 1.41% Net Operating ROTCE 15.4
Slide 9: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin QoQ Drivers $1,790 • Taxable-equivalent net interest income(1) $1,735 $1,692 $1,731 $1,739 increased +$8 million or +1% QoQ – Day count – Favorable impact from repricing in the investment securities and consumer loan portfolios – Earning assets remix $ IN MI
Slide 10: Balance Sheet – Overview
Balance Sheet – Overview Change 3Q24 vs Average Balances, $ in billions, except per share 3Q24 2Q24 3Q23 2Q24 3Q23 Interest-bearing Deposits at Banks $25.5 $29.3 $26.7 -13% -4% Investment Securities $31.0 $29.7 $28.0 4% 11% Commercial and Industrial (“C&I”) $59.8 $58.1 $54.5 3% 10% Commercial Real E
Slide 11: Balance Sheet – Average Loans
Balance Sheet – Average Loans QoQ Drivers $132.6 $132.8 $133.8 $134.6 $134.8 Average loans +$163 million or less than $20.2 $20.6 $21.2 $22.0 $22.9 +1% QoQ: • C&I loans increased +3% (+$1.6 billion), driven $23.6 $23.3 $23.1 $23.0 $23.0 by continued growth spanning most industry types • CRE loans de
Slide 12: Balance Sheet – Securities and Cash
Balance Sheet – Securities and Cash Average Investment Securities and Yield Securities and Cash - at 9/30/24 Other $31.0 Interest- Securities $29.7 bearing 2% $28.6 deposits $28.0 $27.5 HTM at banks Securities 41% 25% $ IN BILLIONS Yield up +9 bps $59.0B 3.61% 3.70% TOTAL 3.30% 3.14% 3.13% Cash AFS
Slide 13: Balance Sheet – Average Deposits
Balance Sheet – Average Deposits $164.7 $164.1 QoQ Drivers $162.7 $163.5 $161.5 $19.5 $21.2 $20.6 $19.8 $17.0 Average deposits decreased -$2.0 billion or -1% QoQ: • Decline in the balance and rates on brokered time deposits $ IN BILLIONS $89.3 $93.4 $94.9 $96.0 $98.3 • Cost of total interest-bearing
Slide 14: Income Statement – Noninterest Income
Income Statement – Noninterest Income Change 3Q24 vs $ in millions 3Q24 2Q24 3Q23 2Q24 3Q23 $606 $ IN MILLIONS $578 $580 $584 Mortgage Banking Revenues $109 $106 $105 3% 4% $560 Service Charges on Deposits $132 $127 $121 3% 9% Trust Income $170 $170 $155 — 9% Brokerage Services $32 $30 $27 2% 16% No
Slide 15: Income Statement – Noninterest Expenses
Income Statement – Noninterest Expenses FDIC special assessment(2) Change 3Q24 vs $1,450 $ in millions 3Q24 2Q24 3Q23 2Q24 3Q23 $1,396 $1,297 $1,303 (3) $1,278 $1,435 Salaries & Benefits $775 $764 $727 1% 7% $1,381 $1,263 $1,284 $1,291 Equip & Occupancy $125 $125 $131 — -5% $ IN MILLIONS Outside Dat
Slide 16: Credit
Credit Net Charge-offs Provision for Credit Losses $ IN MILLIONS $148 $ IN MILLIONS $138 $137 $225 $120 $200 $96 0.44% 0.42% 0.41% 0.35% $150 $150 0.29% $120 3Q23 4Q23 1Q24 2Q24 3Q24 Net Charge-offs ($) Net Charge-off Ratio (%) 3Q23 4Q23 1Q24 2Q24 3Q24 Nonaccrual Loans Allowance for Credit Losses $2
Slide 17: Criticized C&I and CRE Loans
Criticized C&I and CRE Loans Criticized loans decreased -$1.2 billion QoQ : $12.6 $12.9 • C&I decreased -$315 million $12.1 – Driven predominantly by motor vehicle and recreational $11.1 $10.9 finance dealers and manufacturing • CRE decreased -$831 million – Permanent CRE -$525 million $ IN BILLIONS
Slide 18: Criticized C&I Loans
Criticized C&I Loans September 30, 2024 June 30, 2024 Criticized Criticized Total Criticized Criticized Total (Dollars in millions) Outstanding Accrual Nonaccrual Criticized Outstanding Accrual Nonaccrual Criticized Commercial and industrial excluding owner-occupied real estate by industry: Financia
Slide 19: Criticized CRE Loans
Criticized CRE Loans September 30, 2024 June 30, 2024 Criticized Criticized Total Criticized Criticized Total (Dollars in millions) Outstanding Accrual Nonaccrual Criticized Outstanding Accrual Nonaccrual Criticized Permanent finance by property type: Apartments/Multifamily $6,291 $884 $120 $1,004 $
Slide 20: Capital
Capital CET1(1) TBVPS (2) 11.45% 11.54% $107.97 $102.42 11.08% $98.54 $99.54 10.95% 10.98% $93.99 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 QoQ Drivers • CET1 capital ratio increased +9 bps to 11.54%(1) at 3Q24 • Tangible common equity to tangible assets increased +28 bps to 8.83% at the end
Slide 21: 4Q24 Outlook
4Q24 Outlook 4Q24 Outlook Comments • NIM in the low 3.60s Net Interest Income $1,730 million + • Reflects two 25 basis point rate cuts Taxable-equivalent • Range primarily dependent on deposit trends and loan growth Income Statement $595 million to Fee Income • Continued strength in trust and mortga
Slide 22: Why invest in M&T?
Why invest in M&T? Purpose-Driven Successful and Sustainable Business Model that Produces Strong Shareholder Returns Purpose Driven Successful and Strong Shareholder Organization Sustainable Returns Business Model • Long term focused with deeply • Experienced and seasoned • 15-20% ROATCE embedded cu
Slide 23: Appendix
Appendix M&&Bank Corporation| 23
Slide 24: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix GAAP to Net Operating (Non-GAAP) Reconciliation In millions, except per share 3Q23 4Q23 1Q24 2Q24 3Q24 Net income Net income $690 $482 $531 $655 $721 Amortization of core deposits and other intangible assets (1) 12 12 12 10 10 Net operating income $702 $494 $543 $665 $731 Earnings per commo
Slide 25: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix GAAP to Net Operating (Non-GAAP) Reconciliation In millions 3Q23 4Q23 1Q24 2Q24 3Q24 Other expense Other expense $1,278 $1,450 $1,396 $1,297 $1,303 Amortization of core deposit and other intangible assets (15) (15) (15) (13) (12) Noninterest operating expense $1,263 $1,435 $1,381 $1,284 $1,
Slide 26: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix GAAP to Tangible (Non-GAAP) Reconciliation In millions 3Q23 4Q23 1Q24 2Q24 3Q24 Average assets Average assets $205,791 $208,752 $211,478 $211,981 $209,581 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (170) (154) (140) (126) (113) Deferred taxes 4
Slide 27: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix GAAP to Tangible (Non-GAAP) Reconciliation In millions 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Total assets Total assets $209,124 $208,264 $215,137 $208,855 $211,785 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (162) (147) (132) (119)