M&t Bank Corporation · NYSE:MTB
M&t Bank — Keefe, Bruyette & Woods 2011 Bank Conference
32 slides from M&t Bank's conference presentation, Mar 2, 2011
Slide 1: Keefe, Bruyette & Woods 2011 Bank Conference
Keefe, Bruyette & Woods 2011 Bank Conference March 2, 2011
Slide 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 words such as "b
Slide 3: M&T: A "Super-Community Bank"
3 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 a
Slide 4: We provide banking services in the communities where we live and work
4 We provide banking services in the communities where we live and work We have 15 Community Banking Regions across the M&T footprint Regional Presidents represent the face of M&T in each of our markets We provide a wide range of banking services to customers in our communities Over 2 million retail
Slide 5: 2010 Highlights
$5.69 earnings per share almost double 2009 Net operating earnings per share up 65% Continued record of stable dividend payments Capital ratios improved materially Despite higher capital levels, Net Operating Return on TCE improved to almost 19% 2010 Highlights 5
Slide 6: Key Performance Measures
6 Key Performance Measures 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
Slide 7: Core Profitability
Core Profitability \ MaT Bank Corporation 7
Slide 8: Stronger Pre-tax, Pre-provision income per share
Stronger Pre-tax, Pre-provision income per share 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Pre- tax, Pre- provision Income Per Share GAAP EPS Net Operating EPS 8
Slide 9: Long-term focus on revenue growth per share
Revenue reflects FTE Net Interest Income where available and Other Income, and excludes securities gains/losses and any nonrecurring items. Long-term focus on revenue growth per share 9 Revenue Growth Per Share Year-over-Year 20% 15% 10% 5% 0% - 5% - 10% - 15% - 20% 1999 2000 2001 2002 2003 2004 200
Slide 10: Disciplined margin management
10 M&T focuses on returns and relationships rather than volumes Note: Taxable Equivalent net interest margin used for M&T and for peer banks when available. Disciplined margin management % 4.5 4.0 3.5 3.0 2.5 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 MTB Peer Median Net Interest Margin
Slide 11: Credit
Credit \ MaT Bank Corporation 11
Slide 12: Historical Credit Cycle: 1991 - 2010
Source: SNL Interactive. FR Y9C data used. * Top 25 publicly traded banks in each year (excluding IPOs in 2010) Historical Credit Cycle: 1991 - 2010 Nonaccrual Loans / Total Loans NCOs / Average Loans 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 1991 1992 1993 1994 1995 1996 1997 1998
Slide 13: M&T's Credit Ratios are Best-in-Class
M&T's Credit Ratios are Best-in-Class Data as of December 31, 2010 FRY9C reports. Nonperforming Assets % of Total Loans & OREO NPAs as % of TCE + ALLL NCOs % of Avg Loans Reserve Coverage of NCOs (in years)* 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 13 Peer Median = 3.60% Peer Median = 2.56% Peer Median = 1.6
Slide 14: Value of relationship lending seen in both credit and margin
Value of relationship lending seen in both credit and margin Risk-Adjusted Margin = FTE Net Interest Income less Net Charge-Offs as a percentage of average earning assets. 3.3% 2.3% 1.3% 0.3% - 0.7% - 1.7% 14 Risk-Adjusted Net Interest Margin FY 2010 3.30% 3.26% 2.84% 2.23% 2.16% 2.13% 1.67% 1.59% 1
Slide 15: M&T focused on maintaining above-average efficiency
M&T focused on maintaining above-average efficiency 15 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-i
Slide 16: Key Performance Measures
16 Key Performance Measures 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
Slide 17: Wilmington Trust
Wilmington Trust \ MaT Bank Corporation :7
Slide 18: Creating the Leading Relationship Bank in the Mid-Atlantic
18 Creating the Leading Relationship Bank in the Mid-Atlantic Creates significant value for shareholders, customers, employees and communities Complementary community banking models with focus on relationships Leverage top-tier scale in targeted markets to generate superior profitability Common Valu
Slide 19: Wilmington Trust Update
M&T’s merger with Wilmington Trust proceeding as planned S-4 Registration Statement / Merger Proxy declared effective WL shareholder vote scheduled for March 22 Required regulatory applications filed with appropriate agencies Approvals on separate but parallel path Weekly transition meetings begun i
Slide 20: Long Term Performance
Long Term Performance [\ MaT Bank Corporation 20
Slide 21: Earnings & Dividend Growth: 1983 - 2010
Earnings & Dividend Growth : 1983 - 2010 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 Diluted Net Operating Earnings Dividends 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 17% CAGR 21 M&T has main
Slide 22: Disciplined Capital Allocation
22 Disciplined Capital Allocation Cumulative Capital Retained, Dividends and Share Repurchases 1983 - December 2010 $3.2 Billion $2.8 Billion $2.6 Billion Dividends 30% Capital Retained 33% Share Repurchases 37%
Slide 23: Total Return to Shareholders
Total Return to Shareholders Top 50 Banks by Market Cap On January 1, 2000 Source: SNL Financial. 23 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 11 Year # Company TRS # Company TRS # Company TRS # Company TRS # Company TRS # Company TRS # Company TRS # Company TRS # Company TRS # Company
Slide 24: M&T Bank Corporation... a solid investment
24 Of the largest 100 banks operating in 1983, only 25 remain today M&T Bank Corporation... a solid investment Among the remaining, M&T ranks 1st in stock price growth Stock Closing Price at Return 1/31/2011 3/31/1983 CAGR Rank Company Name Ticker ($) ($) 1 (%) 1 M&T Bank Corporation MTB 86.47 1.34
Slide 25: M&T Bank Corporation... a solid investment
M&T Bank Corporation... a solid investment 25 Rank Company Name Industry Annual Return (%) 1 Eaton Vance Corp. Financials 26.2 2 Stryker Corp. Health Care 23.3 3 Progressive Corp. Financials 23.2 4 Hasbro Inc. Consumer Discretionary 23.2 5 Gap Inc. Consumer Discretionary 22.8 6 Wal- Mart Stores Inc.
Slide 26: M&T: A "Super-Community Bank"
26 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
Slide 27: Keefe, Bruyette & Woods 2011 Bank Conference
Keefe, Bruyette & Woods 2011 Bank Conference March 2, 2011
Slide 28: Appendix
Appendix X\ MaT Bank Corporation 2:
Slide 29: 2011 Operating Environment (ex WL impact)
NIM consistent with 2010 Modest single-digit YoY loan growth Non-performing loan trends likely to continue to be lumpy Credit costs to improve marginally Unless noticeable improvement in unemployment/economy. Cautious regarding top-line growth, given regulatory headwinds Continue to emphasize operat
Slide 30: 2010 Peer Group - Largest Regional Banks
30 2010 Peer Group - Largest 15 Regional Banks BB&T Corporation Marshall & Ilsley Corporation * Capital One Financial Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Synovus Financial Corp. First Horizon National Corporation SunT
Slide 31: Reconciliation of GAAP and Non-GAAP Measures: Net Income
31 Net Income 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $'s in millions Net income $198.3 $252.4 $268.2 $353.1 $456.7 $573.9 $722.5 $782.2 $839.2 $654.3 $555.9 $379.9 $736.2 Intangible amortization, net of tax 30.0 42.4 56.1 99.4 32.5 47.8 46.1 34.7 38.5 40.5 40.5 39.0 35.3 Me
Slide 32: Reconciliation of GAAP and Non-GAAP Measures: Average Assets
32 Average Assets 2006 2007 2008 2009 2010 $'s in millions Average assets $ 55,839 $ 58,545 $ 65,132 $ 67,472 $ 68,380 Goodwill (2,908) (2,933) (3,193) (3,393) (3,525) Core deposit and other intangible assets (191) (221) (214) (191) (153) Deferred taxes 38 24 30 33 29 Average tangible assets $ 52,77
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