M&t Bank Corporation · NYSE:MTB
M&t Bank — Q1 2024 Earnings Presentation
28 slides from M&t Bank's earnings presentation, Apr 15, 2024
Slide 1: Earnings Results 1st Quarter 2024
Earnings Results 1st Quarter 2024 APRIL 15, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of the large, multi-year contracts; continued availability of financing; financial resources in the amounts, at the times and on the terms Private Securities Litigation Refor
Slide 3: Purpose, Mission and Operating Principles
Purpose Mission Operating Principles Operating & Credit Local Scale Capital Discipline Efficiency 3
Slide 4: Making a positive impact on our communities, customers and colleagues
Making a positive impact on our communities, customers and colleagues 2023 Sustainability Accomplishments and Highlights Fostering Prosperity in Our Communities Investing in Our Employees • Ranked #6 SBA Lender in the country (FY2023), the • Consistent investment in talent development programs 15th
Slide 5: Financial
Financial M&& Bank Corporation | s
Slide 6: Earnings Highlights
Earnings Highlights GAAP GAAP - Adjusted (Non-GAAP)(1) ($ in millions, except per share) 1Q24 4Q23 1Q23 ($ in millions, except per share) 1Q24 4Q23 1Q23 Revenues $2,260 $2,300 $2,405 Revenues $2,260 $2,300 $2,405 Noninterest Expense $1,396 $1,450 $1,359 Noninterest Expense $1,367 $1,253 $1,359 Provi
Slide 7: Earnings Highlights - Net Operating Results
Earnings Highlights Net Operating Results (Non-GAAP)(1) ($ in millions, except per share) 1Q24 4Q23 1Q23 Net Operating Income $543 $494 $715 Diluted Net Operating EPS $3.09 $2.81 $4.09 Efficiency Ratio 60.8% 62.1% 55.5% Net Operating ROTA 1.08% 0.98% 1.49% Net Operating ROTCE 12.67% 11.70% 19.00% Ta
Slide 8: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin QoQ Drivers $1,832 • Taxable-equivalent net interest income (1) $1,813 decreased -$43 million QoQ $1,790 $1,735 – Elevated interest expense from funding mix and cost $1,692 changes – Lower nonaccrual interest and impact of cash flow hedges $ IN MILLIONS – On
Slide 9: Balance Sheet – Overview
Balance Sheet – Overview Change 1Q24 vs Average Balances, $ in billions, except per share 1Q24 4Q23 1Q23 4Q23 1Q23 Interest-bearing Deposits at Banks $30.7 $30.2 $24.3 2% 26% Investment Securities $28.6 $27.5 $27.6 4% 3% Commercial and Industrial (“C&I”) $56.8 $55.4 $52.5 3% 8% Commercial Real Estat
Slide 10: Balance Sheet – Average Loans
Balance Sheet – Average Loans $132.0 $133.5 $132.6 $132.8 $133.8 QoQ Drivers $20.5 $20.3 $20.2 $20.6 $21.2 Average loans +$1.0 billion or +1% QoQ: • C&I loans increased +3% (+$1.4 billion) QoQ, $23.8 $23.8 $23.6 $23.3 $23.1 driven by growth that spanned most industry types • CRE loans declined -2% (
Slide 11: Balance Sheet – Securities and Cash
Balance Sheet – Securities and Cash Average Investment Securities and Yield Securities and Cash – at 3/31/24 $28.6 $28.6 Other $28.0 Securities $27.6 $27.5 2% Interest- Yield up HTM $62.3B bearing 17 bps deposits at Securities 24% banks TOTAL $ IN BILLIONS 3.30% 52% 3.09% 3.14% 3.13% 3.00% Cash 3% A
Slide 12: Balance Sheet – Average Deposits
Balance Sheet – Average Deposits QoQ Drivers $161.5 $162.7 $164.7 $164.1 Average deposits -$0.6 billion or less than -1% $159.4 QoQ: $11.6 $16.0 $19.5 $21.2 $20.6 • Slowing deposit mix shift to higher cost deposits • Core non-maturity deposits cost only increased +1 bp $ IN BILLIONS $88.1 $87.2 $89.
Slide 13: Income Statement – Noninterest Income
Income Statement – Noninterest Income Change 1Q24 vs Gain on CIT Sale(1) $803 $ in millions 1Q24 4Q23 1Q23 4Q23 1Q23 Mortgage Banking Revenues $104 $112 $85 -7% 23% $587 $225 $578 $580 Service Charges on Deposits $124 $121 $113 2% 9% $560 Trust Income $160 $159 $194 1% -17% $587 $580 $ IN MILLIONS $
Slide 14: Income Statement – Noninterest Expenses
Income Statement – Noninterest Expenses FDIC Special FDIC Special Assessment(1) Assessment(1) Change 1Q24 vs $ in millions 1Q24 4Q23 1Q23 4Q23 1Q23 $1,450 (5) Salaries & Benefits $833 $724 $808 15% 3% $15 $1,396 $1,359 $1,435 Equip & Occupancy $129 $134 $127 -4% 2% $15 $17 $1,381 Outside Data Proc &
Slide 15: Credit
Credit Net Charge-offs Provision for Credit Losses $148 $138 $127 $225 $ IN MILLIONS $ IN MILLIONS $200 $96 0.44% 0.42% $150 $150 0.38% $70 0.29% $120 0.22% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 NCO ($) Net Charge-off Ratio Nonaccrual Loans Allowance for Credit Losses $ IN MILLIONS $ IN
Slide 16: Criticized C&I and CRE Loans
Criticized C&I and CRE Loans +$364 million QoQ Criticized Increase: $12.9 • C&I increased +$641 million $12.6 – Nonautomotive dealers and manufacturing $11.1 • CRE decreased -$277 million $10.6 $10.5 – Permanent CRE -$139 million 14.3% – Construction -$138 million $ IN BILLIONS 14.0% 12.5% • 97% of
Slide 17: Criticized C&I Loans
Criticized C&I Loans March 31, 2024 December 31, 2023 Criticized Criticized (Dollars in millions) Outstanding Criticized Accrual Nonaccrual Total Criticized Outstanding Criticized Accrual Nonaccrual Total Criticized Commercial and industrial excluding owner-occupied real estate by industry: Financia
Slide 18: Criticized CRE Loans
Criticized CRE Loans March 31, 2024 December 31, 2023 Criticized Criticized (Dollars in millions) Outstanding Criticized Accrual Nonaccrual Total Criticized Outstanding Criticized Accrual Nonaccrual Total Criticized Permanent finance by property type: Apartments/Multifamily $ 6,441 $ 1,003 $ 112 $ 1
Slide 19: Capital
Capital CET1(1) TBVPS(2) $98.54 $99.54 $93.99 11.07% (1) $91.58 10.95% 10.98% $88.81 10.59% 10.16% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 QoQ Drivers • CET1 capital ratio increased +9 bps to 11.07%(1) at 1Q24 • Tangible common equity to tangible assets was 8.03% at the end of 1Q24 • Tangi
Slide 20: 2024 Outlook
2024 Outlook 2024 Outlook Comments Net Interest Income • NIM in the 3.50s $6.8 billion + Taxable-equivalent • Reflects two rate cuts Income Statement $2.3 billion to Fee Income • Growth in trust income from higher equity markets $2.4 billion GAAP Expense $5.25 billion to Includes intangible amortiza
Slide 21: 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 Organization Sustainable Shareholder Business Model Returns • Long term focused with deeply • Experienced and seasoned • 15-20% ROATCE embedded cu
Slide 22: Appendices
Appendices M&& Bank Corporation | 22
Slide 23: GAAP to GAAP – Adjusted Reconciliation
Appendix 1 GAAP to GAAP – Adjusted (Non-GAAP) Reconciliation In millions 1Q23 2Q23 3Q23 4Q23 1Q24 Revenues Net interest income - GAAP $1,818 $1,799 $1,775 $1,722 $1,680 Total other income - GAAP 587 803 560 578 580 Subtotal 2,405 2,602 2,335 2,300 2,260 Gain on CIT - (225) - - - Revenues - GAAP Adju
Slide 24: GAAP to GAAP – Adjusted Reconciliation: Net Income and EPS
Appendix 1 GAAP to GAAP – Adjusted (Non-GAAP) Reconciliation In millions, except per share 1Q23 2Q23 3Q23 4Q23 1Q24 Net income Net income - GAAP $702 $867 $690 $482 $531 FDIC special assessment(1) - - - 146 22 Gain on CIT(1) - (157) - - - Net income - GAAP Adjusted $702 $710 $690 $628 $553 Diluted E
Slide 25: GAAP to Net Operating Reconciliation
Appendix 2 GAAP to Net Operating (Non-GAAP) Reconciliation In millions, except per share 1Q23 2Q23 3Q23 4Q23 1Q24 Net income Net income $702 $867 $690 $482 $531 Amortization of core deposit and other intangible assets(1) 13 12 12 12 12 Net operating income $715 $879 $702 $494 $543 Earnings per commo
Slide 26: GAAP to Net Operating Reconciliation: Efficiency Ratio
Appendix 2 GAAP to Net Operating (Non-GAAP) Reconciliation In millions 1Q23 2Q23 3Q23 4Q23 1Q24 Other expense Other expense $1,359 $1,293 $1,278 $1,450 $1,396 Amortization of core deposit and other intangible assets (17) (15) (15) (15) (15) Noninterest operating expense $1,342 $1,278 $1,263 $1,435 $
Slide 27: GAAP to Tangible Reconciliation: Average Balances
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation In millions 1Q23 2Q23 3Q23 4Q23 1Q24 Average assets Average assets $202,599 $204,376 $205,791 $208,752 $211,478 Goodwill (8,490) (8,473) (8,465) (8,465) (8,465) Core deposit and other intangible assets (201) (185) (170) (154) (140) Deferred taxes
Slide 28: GAAP to Tangible Reconciliation: Period-End Balances
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation In millions 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Total assets Total assets $202,956 $207,672 $209,124 $208,264 $215,137 Goodwill (8,490) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (192) (177) (162) (147