M&t Bank Corporation · NYSE:MTB
M&t Bank — BancAnalysts Association of Boston 2009 Annual Bank Conference
35 slides from M&t Bank's conference presentation, Nov 5, 2009
Slide 1: BancAnalysts Association of Boston 2009 Annual Bank Conference
BancAnalysts Association of Boston 2009 Annual Bank Conference November 5th, 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 full-service commercial bank holding company by assets and Top 15 by market cap* $69 billion total assets 832 branches in seven states / District of Columbia 92% in NY, PA, MD 7% in VA Over 1,900 ATMs across retail bank footprint Over 2 million retail customers Over 190,000 commerc
Slide 4: M&T's Culture - Understanding what's important
4 M&T's Culture - "Understanding what's important." For more than 150 years, M&T Bank has delivered on our promise of "Understanding what's important" by building deep, long-lasting relationships with our customers and by investing in our communities. Focused on long term shareholder returns Conserv
Slide 5: Focus on Long Term Shareholder Returns
5 Focus on Long Term Shareholder Returns Management's Interest aligned with Shareholders' Interests Approximately 50% Ownership between AIB, M&T Insiders and Warren Buffett Berkshire Hathaway- Warren Buffett M&T Management, Directors and Employees Ownership as of 9/30/09, as available, otherwise as
Slide 6: M&T's Core Foundation is Stability
M&T Bank average employee tenure (as of 7/6/09): 9.9 years M&T Bank average tenure of employees with >1 yr service: 10.9 years vs. US Dept. of Labor financial services industry average tenure: 4.7 years 6 M&T's Core Foundation is Stability... Management Group average tenure: 21.5 years Senior Vice P
Slide 7: Advantages of M&T's Community Bank Model
7 Keep decisions close to customer Specific product expertise is structured centrally, but delivered locally Ability to quickly respond to strategic priorities of the Bank Centrally controlled, but regionally managed, risk creation process Advantages of M&T's Community Bank Model We lend in the mark
Slide 8: September 2009 YTD Results
September 2009 YTD Results EN Mgt Bank Corporation «
Slide 9: September 2009 YTD Summary
9 September 2009 YTD Summary ($ in millions, except per share data) Excludes merger-related gains and expenses and amortization expense associated with intangible assets. Reconciliation included in Appendix. Lowest NCO Ratio % among peers Consistent Net Operating coverage of quarterly dividend Profi
Slide 10: Key Ratios
10 Key Ratios Excludes merger-related gains and expenses and amortization expense associated with intangible assets. Reconciliation included in Appendix. Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets, merger-related expenses and othe
Slide 11: Operating Return on Avg. Tangible Common Equity - Sept '09 YTD
11 Operating Return on Avg. Tangible Common Equity - Sept '09 YTD Note: Excludes amortization of intangibles and goodwill impairment, merger-related items, and other nonrecurring items as noted by SNL. 2009 includes the FDIC special assessment. 10 of 15 peer banks reported losses for the first nine
Slide 12: Net Interest Margin versus peers
12 M&T's focus on returns and relationships rather than volumes allows it to maintain a modest 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 13: Risk-Adjusted Net Interest Margin
Risk-Adjusted Net Interest Margin *FTE Net Interest Income less Net Charge-Offs as a percentage of average earning assets. *
Slide 14: Credit Quality vs. Peer Banks
14 Credit Quality vs. Peer Banks
Slide 15: Nonaccrual and NCO ratios vs. peers through the credit cycle
15 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 16: Credit Quality - September 2009 YTD
16 Credit Quality - September 2009 YTD Source: SNL Interactive, peer bank earnings releases. * September 2009 YTD Annualized Net Charge-Offs ** Reserves to Legacy M&T Loans. 1.66% including 2009 loans acquired at fair value without reserves. M&T has the second highest coverage ratio among peers whil
Slide 17: Commercial Credit Quality vs Peers - June 30, 2009
17 Commercial Credit Quality vs Peers - June 30, 2009 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 underwriti
Slide 18: Consumer Credit Quality vs Peers - June 30, 2009
18 Consumer Credit Quality vs Peers - June 30, 2009 Source: SNL Interactive. FR Y9C data as of June 30, 2009.
Slide 19: Capital & Reserve Coverage of Problem Assets
19 Capital & Reserve Coverage of Problem Assets Tangible Common Equity + Loan Loss Reserves as a % of Non-Performing Assets Peer Median Peer Median Tangible Common Equity + Loan Loss Reserves as a % of Net Charge-Offs* Source: SNL Interactive. * September 2009 YTD Annualized Net Charge-Offs
Slide 20: M&T's geographies and underwriting are keys to out-performance
20 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 21: Provident Acquisition: Growing When and Where it Makes Sense
21 Provident Acquisition: Growing When and Where it Makes Sense
Slide 22: Deal Value and Tangible Equity at Announcement
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 22
Slide 23: 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 24: Opportunity in the Community Bank Model
24 Opportunity in the Community Bank Model Opportunity Opportunity * Data reflects Western New York vs. Baltimore/Greater Washington regions Opportunity
Slide 25: MTB: A Solid Investment
MTB: A Solid Investment EN Ma Bank Corporation 2s
Slide 26: M&T Bank Corporation... a solid investment
26 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 19%, 29% and 88% over the past 3, 5 and 10-year periods, respect
Slide 27: Diluted EPS Growth Versus Peers
27 27 Source: SNL Interactive, Bureau of Economic Analysis (GDP). Note: FITB's September 2009 YTD earnings are adjusted to exclude the gain on sale of its processing business. M&T's recent performance has moved it into top quartile of performance over the long term Diluted EPS Growth Versus Peers EP
Slide 28: Of the largest banks in 1983, only few remain today
28 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 29: Appendix
Appendix EX Ma Bank Corporation 2
Slide 30: Reconciliation of GAAP and Non-GAAP Results of Operation
30 Reconciliation of GAAP and Non-GAAP Results of Operation * Excludes gain/(loss) on sale of securities.
Slide 31: Reconciliation of GAAP and Non-GAAP Results of Operation
31 Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 32: Private Sector Employment Growth in the M&T Footprint
United States M&T Footprint NYS, Central PA, Philadelphia, MD, DC, NoVa & Richmond - -4.9% Sept 2008 0.2% Although employment losses have increased since the third quarter of 2008, the rate of decline in the M&T footprint remains well below the U.S. average 2004 2005 2006 2007 2008 2009 Sept Source:
Slide 33: Existing Home Price Appreciation - Q2 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, conforming mortgage transactions. Excludes prope
Slide 34: 2009 Peer Group - Largest Regional Banks
34 2009 Peer Group - Largest 15 Regional Banks
Slide 35: BancAnalysts Association of Boston 2009 Annual Bank Conference
BancAnalysts Association of Boston 2009 Annual Bank Conference November 5th, 2009
M&T Bank — BancAnalysts Association of Boston 2009 Annual Bank Conference on 6ix