M&t Bank Corporation · NYSE:MTB
M&t Bank — Deutsche Bank Global Financial Services Conference 2016
18 slides from M&t Bank's conference presentation, Jun 1, 2016
Slide 1: Deutsche Bank Global Financial Services Conference
Exhibit 99.1 Deutsche Bank Global Financial Services Conference June 1, 2016
Slide 2: Disclaimer
Disclaimer This presentation contains forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving M&T Bank Corporation’s (“M&T”) expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typ
Slide 3: Who is M&T Bank Corporation?
Who is M&T Bank Corporation? Top 20 US-based commercial bank holding company Have grown substantially from $2 billion in assets in 1983 to $125 billion at March 31, 2016 17,153 employees across 808 domestic branches in eight states and Washington DC 3.8 million customers representing 6.0 million acc
Slide 4: M&T's Operating Model
M&T’s Operating Model Consistent Operating Model Long-tenured management team and workforce Consistent credit culture Focus on operating leverage / efficiency Disciplined capital allocation and acquisitions Opportunistic growth Results Low credit and earnings volatility Outperformance in stressed en
Slide 5: M&T Talent and Leadership
M&T Talent and Leadership M&T’s 14-member Management Group averages 25 years of service Average 11 years on Management Group Deep experience integrating deals with 24 mergers over last 28 years, including 11 thrifts Generally develop general manager talent in-house Two executive training programs in
Slide 6: Key Metrics
Key Metrics 2010 2011 2012 2013 2014 2015 1Q'15 1Q'16 Superior Pre-Credit Earnings Net Interest Margin 3.84% 3.73% 3.73% 3.65% 3.31% 3.14% 3.17% 3.18% (1)(3) Net Operating Efficiency Ratio 53.71% 59.49% 55.28% 55.98% 59.29% 57.98% 61.46% 57.00% (1)(3) PPNR 1,461 1,531 1,796 1,951 1,766 1,845 413 517
Slide 7: M&T's Business Model – a Historical Perspective
M&T’s Business Model – a Historical Perspective PPNR to RWA% Net Interest Margin % 6.0% 6.0% 5.0% 5.5% 5.0% 4.0% 4.5% 3.0% 2.80% 4.0% 2.20% 3.5% 3.43% 2.0% 1.86% 3.18% 3.0% 3.05% 1.0% 1.32% 2.5% 2.75% 0.0% 2.0% MTB Peer Maximum Peer Median Peer Minimum MTB (SNL) Peer Maximum Peer Median Peer Minimum
Slide 8: Low-Volatility Model Low Cost of Capital
Low-Volatility Model Low Cost of Capital Return on Average Tangible Assets Relative Cost of Capital 25 Years (1991-2015) 10 Year Beta Average 2.0% 1.78% 1 Company Beta 1.67% 1.5% Peer 1 1.57 1.38% 1.27% Peer 2 1.51 1.0% Peer 3 1.48 0.71% Peer 4 1.46 0.5% Peer 5 1.45 Peer 6 1.45 0.0% Peer Median 1.45
Slide 9: Outperformance Through the Credit Cycle
Outperformance Through the Credit Cycle NCOs / Average Loans 3.00% 2.75% 2.50% Top 25 MTB NCOs/Loans MTB 2.25% Median Advantage 25 Year 2.00% 0.38% 0.82% 0.43% Average 1.75% Recessions 1.50% 3Q90-1Q91 0.39% 1.30% 0.91% 1.25% 1Q01-4Q01 0.31% 0.62% 0.31% 1.00% 4Q07-2Q09 0.79% 1.47% 0.68% 0.75% 0.50% 0
Slide 10: Historically Efficient Capital Structure Aligned With Risk Profile
Historically Efficient Capital Structure Aligned With Risk Profile Tangible and Regulatory Capital 11.1% 10.6% CCAR 2014 & 2015 20-Year TCE/TA 3/31/16 Average MTB 6.2% 8.7% Peer Median 6.9% 9.0% Difference (0.7%) (0.3%) Source: SNL Interactive and Regulatory Filings. 10 (1) For periods prior to 2015
Slide 11: Deploying Capital Where and When it Makes Sense
Deploying Capital Where and When it Makes Sense Cumulative Capital Retained, Dividends and Share Repurchases 5 Years 8 Years 2003 - 2007 2008 - 2015 Dividends 28% Capital Retained Share 20% Repurchases 52% 30 Years 1986 – 2015 11 Calculated using Net Operating Income – see appendix.
Slide 12: Disciplined Approach to Acquisitions
Disciplined Approach to Acquisitions M&T’s acquisitions vs. bank deals greater than $1B since 2000: Deal value / TCE Source: SNL Financial, Company Filings Deal value at announcement and tangible common equity at most recent quarter before announcement. 12 Although M&T’s acquisitions of Provident an
Slide 13: Strategic Focus: Disciplined Growth and Capital Efficiency
Strategic Focus: Disciplined Growth and Capital Efficiency Consistent Sustaining credit discipline Credit Culture Focus on Operating Technology investments for growth and efficiency Leverage / Efficiency Potential upside from asset sensitive balance sheet Capital structure optimization – deploy exce
Slide 14: M&T Bank Corporation…a solid investment
M&T Bank Corporation…a solid investment 18.3% Annual rate of return since 1980 1 In the top 30 of the entire universe 2 of U.S. based stocks traded publicly since 1980 Rank Company Name Industry Annual Return 1 L Brands, Inc. Consumer Discretionary 23.4 2 Eaton Vance Corp. Financials 22.9 3 TJX Comp
Slide 15: Appendix and GAAP Reconciliations
Appendix and GAAP Reconciliations 15
Slide 16: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Net Income 2010 2011 2012 2013 2014 2015 1Q15 1Q16 $ in millions Net income $736.2 $859.5 $1,029.5 $1,138.5 $1,066.2 $1,079.7 $241.6 $298.5 Intangible amortization* 35.3 37.6 37.0 28.6 20.7 16.2 4.2 7.5 Merger-related items* (16.3) (12.8) 6.0 7.5 - 60.8 -
Slide 17: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 2010 2011 2012 2013 2014 2015 1Q15 1Q16 $ in millions Average assets $ 68,380 $ 73,977 $ 79,983 $ 83,662 $ 92,143 $ 101,780 $ 95,892 $ 123,252 Goodwill (3,525) (3,525) (3,525) (3,525) (3,525) (3,694) (3,525) (4,593) Core deposit and other i
Slide 18: M&T Peer Group
M&T Peer Group BB&T Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp SunTrust Banks, Inc. Huntington Bancshares Incorporated U.S. Bancorp KeyCorp Wells Fargo & Company M&T Bank Corporation Zions Bancorporation 18
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