M&t Bank Corporation · NYSE:MTB
M&t Bank — Lehman Brothers Financial Services Conference 2006
35 slides from M&t Bank's conference presentation, Sep 14, 2006
Slide 1: Lehman Brothers Financial Services Conference September 14, 2006
Lehman Brothers Financial Services Conference September 14, 2006
Slide 2: Disclaimer
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
Slide 3: M&T Bank Corporation - Overview
Top 20 US-based Commercial Bank Holding Company $13.1 billion market capitalization $56.5 billion total assets Over 670 branches in six states / District of Columbia Over 1,500 ATMs across retail bank footprint Over 2 million retail customers Over 150,000 commercial customers M&T Bank Corporation -
Slide 4: M&T - Footprint
M&T - Footprint es Branch & Mortgage Locations HBB Mortgage Offices Only
Slide 5: Recent Financial Results
Recent Financial Results f\ Met Bank Corporation ¢
Slide 6: M&T Bank Corporation - Earnings Per Share Summary
M&T Bank Corporation - Earnings Per Share Summary (1) Excludes merger-related costs and amortization expense associated with intangible assets. *Intangible Amortization net of tax: 2Q2005 =$9MM, 1Q2006 = $8MM, 2Q2006 = $7MM. Merger-related costs net of tax: 2Q2006 = $2MM ($ in millions)
Slide 7: M&T Bank Corporation - Key Ratios
M&T Bank Corporation - Key Ratios (1) Excludes amortization related to intangible assets and merger related expenses. (2) Excludes $25 million contribution to the M&T Charitable Foundation; reported efficiency ratio = 53.51%.
Slide 8: June YTD Net Income by Segment
(1) CAGR calculated using June 2004 YTD as base period. ($ in millions) M&T Bank Corporation - June YTD Net Income by Segment
Slide 9: Net Interest Margin
Net Interest Margin Source: SNL Financial
Slide 10: Net Interest Margin
Net Interest Margin Sensitivity of NII to changes in interest rates 200bps increase: $(21.2) million 200bps decrease: $(1.1) million Federal Reserve tightening cycle at or near end Acquired $1 billion in core deposits in Citibank branch transaction Managing deposit pricing still key
Slide 11: M&T Bank Corporation - Average Loans
M&T Bank Corporation - Average Loans ($ in billions)
Slide 12: M&T Bank Corporation - Average Loans
M&T Bank Corporation - Average Loans Strength in Commercial; cyclical 3Q weakness in Floor Plan Competition in Commercial Real Estate No change in outlook for consumer auto lending
Slide 13: M&T Bank Corporation - Average Deposits
M&T Bank Corporation - Average Deposits ($ in billions)
Slide 14: Market Interest Rates are a Predictor of Consumer Deposit Mix
Market Interest Rates are a Predictor of Consumer Deposit Mix
Slide 15: M&T Bank Corporation - Operating Expense Summary
M&T Bank Corporation - Operating Expense Summary ($ in millions) (1) Excludes intangible amortization and merger-related expenses.
Slide 16: Operating Efficiency Ratio
Operating Efficiency Ratio Source: SNL Financial Note: Ratio excludes expense associated with intangible assets, non-recurring expenses, and G/L on investment securities. * MTB's efficiency ratio excludes the $25 million pretax contribution to the M&T Charitable Foundation.
Slide 17: M&T Bank Corporation - Operating Expense
M&T Bank Corporation - Operating Expense Focus in maintaining positive operating leverage Continued momentum from bank-wide projects Allocation of resources to faster growing businesses/geographies
Slide 18: Credit Quality: Net Charge-offs as a % of Average Loans
Credit Quality: Net Charge-offs as a % of Average Loans Source: SNL Financial
Slide 19: Credit Quality
Credit Quality NPLs to total loans ratio of 38bps at June 30, 2006 Only two non-performing loans exceeded $5MM as of June 30th 10bps NCO in 2Q unsustainably low FY2005 loss rate is still a good benchmark
Slide 20: Citibank Branch Acquisition
Citibank Branch Acquisition
Slide 21: Citibank Branch Acquisition Highlights
21 Upstate NY Branches 9 Buffalo metro area 12 Rochester metro area Acquired $269MM in loans and $1.0 billion in core deposits Gives M&T No.1 market position in Buffalo and Rochester Low risk transaction with extensive branch overlap Citibank Branch Acquisition Highlights
Slide 22: Citibank Branch Acquisition
More than 50% cost savings Estimating $5-7 million merger expense in 2006 Dilutive to GAAP Earnings due to CDI amortization expense and merger related expenses Accretive to Net Operating Earnings within first year Citibank Branch Acquisition
Slide 23: M&T Response to Current Environment
M&T Response to Current Environment Net Interest Margin expected to stabilize Expected lift from Citibank branch acquisition Modest revenue growth Continued focus on efficiency Disciplined capital management
Slide 24: Historical Performance
Historical Performance [2\ Met Bank Corporation *
Slide 25: Return of Capital to Shareholders
Return of Capital to Shareholders Cumulative Capital Retained, Dividends and Share Repurchases 1983 - June 30, 2006 Share Repurchases Dividends Capital Retained 2569.019 1090.904 1959.795 $2.6 Billion $2.0 Billion $1.1 Billion
Slide 26: What Makes M&T Unique?
What Makes M&T Unique?* AIB Berkshire Hathaway-Warren Buffet M&T Management, Directors, Employees, etc. Other 0.2398 0.0602 0.2052 0.4948 Management's Interest aligned with Shareholders' Interests Over 50% Ownership between AIB, M&T Insiders and Warren Buffett AIB Berkshire Hathaway- Warren Buffett
Slide 27: M&T Diluted EPS 1995 - 2005, GAAP & Net Operating
* Net operating EPS excludes amortization of intangible assets and merger-related costs. Note: GAAP and net operating EPS in 1998-2002 have been restated for expensing stock options. M&T Diluted EPS 1995 - 2005, GAAP & Net Operating* 1995 - 2005 EPS CAGR GAAP 14.1% Net Operating* 14.1% 1995 1996 199
Slide 28: M&T Per Share Data 1983-2005
M&T Per Share Data 1983-2005 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Diluted Net Operating Earnings 0.09 0.3 0.41 0.48 0.73 0.6 0.57 0.8 0.93 1.31 1.35 1.58 1.88 2.19 2.61 3.06 3.69 4.11 4.63 5.12 5.7 6.38 7.03 Dividends 0.05
Slide 29: M&T Bank Corporation... a solid investment
24.7% Annual rate of return since 1980 13th best return of the entire universe of over a thousand U.S. based stocks that have traded publicly since 1980 $2,853 invested in M&T in 1980 would be worth $1 million today M&T Bank Corporation... a solid investment *CAGR calculated assuming reinvestment of
Slide 30: Lehman Brothers Financial Services Conference September 14, 2006
Lehman Brothers Financial Services Conference September 14, 2006
Slide 31: Appendix
Appendix 2\ Met Bank Corporation *
Slide 32: Reconciliation of GAAP and Non-GAAP Results of Operation
Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 33: Reconciliation of GAAP and Non-GAAP Results of Operation
Reconciliation of GAAP and Non-GAAP Results of Operation * Excludes Securities Transactions
Slide 34: Reconciliation of Assets & Equity to Tangible Assets & Equity
Reconciliation of Assets & Equity to Tangible Assets & Equity
Slide 35: Reconciliation of Assets & Equity to Tangible Assets & Equity
Reconciliation of Assets & Equity to Tangible Assets & Equity
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