M&t Bank Corporation · NYSE:MTB
M&t Bank — Debt Investor Presentation (May 2023)
30 slides from M&t Bank's debt investor presentation, May 2, 2023
Slide 1: Fixed Income Update | Second Quarter 2023
Fixed Income Update | Second Quarter 2023 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of the Private Securities Litigation Reform Act of 1995 and the rules and regulations of the Securities and Exchange Commission (“SEC”). Any statement that does not describe
Slide 3: M&T – A High Performing Community-Focused Bank
Top 15 U.S.-based, commercial bank holding company, with national capabilities from our suite of specialty businesses and Wilmington Trust Seasoned management team and deeply embedded culture Superior profitability and earnings and dividend growth over multiple economic cycles Decades of top quartil
Slide 4: The M&T Story: Our Operating Principles
The M&T Story: A High Performing Community-Focused Bank… ….Our Operating Principles Our People Operating Principles Mission Outcomes Talent & Capabilities Customers & Communities Ongoing insourcing of new capabilities Local Scale Credit Discipline Operating & Capital Efficiency Long-term and deep cu
Slide 5: Local Scale in Key Markets in M&T Footprint
Rank Buffalo 1 Rochester 1 Bridgeport 2 Baltimore 2 Hartford 2 New Haven 2 Boston 8 Philadelphia 9 Washington 11 New York 16 Contiguous Branch Footprint… …With Market Leading Franchises… Top 10 MSAs by Deposits Top Northeast Banks by Branches(1) Local Scale in Key Markets in M&T Footprint … and Dens
Slide 6: Key Ratios
Key Ratios Notes: (1) The Efficiency Ratio and Pre-provision Net Revenue are non-GAAP financial measures. The Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets and merger-related expenses) as a percentage of fully taxable-equivalent net
Slide 7: M&T's Business Model – Focus on Four Key Performance Indicators
M&T’s Business Model – Focus on Four Key Performance Indicators Note: All earnings annualized and operating except for PPNR. ROTCE, efficiency, and PPNR are non-GAAP measures and are reconciled in the appendix. Source: S&P Global Market Intelligence and company filings Net Interest Margin Operating
Slide 8: Solid Performance in Key Metrics against Peers
Solid Performance in Key Metrics against Peers Notes: All earnings annualized and operating except for PPNR. ROTCE, and efficiency, are non-GAAP measures and are reconciled in the appendix. Source: S&P Global Market Intelligence and company filings ROTCE % (ex-AOCI) 1Q23 Efficiency Ratio 1Q23 PPNR /
Slide 9: Key Areas of Focus
KeyAreas of Focus M&@ Bank Corporation
Slide 10: Granular, Diversified Core Deposit Funding & Strong Liquidity Position
Granular, Diversified Core Deposit Funding & Strong Liquidity Position Granular Deposit Base 64% of deposits are insured or collateralized Average consumer deposit account balance is $13,000 Average business banking deposit account balance is $47,000 Diversified Deposit Base Deposits are spread acro
Slide 11: Local Scale Leads to Superior Deposit Franchise
Total Cost of Deposits Noninterest-bearing deposits represented 38% of 1Q 2023 average total deposits for M&T compared to 32% peer median 2002-1Q23 Average M&T 0.73% Peer Median 0.89% Difference -0.16% Noninterest Bearing Deposits / Total Deposits Local Scale Leads to Superior Deposit Franchise Sour
Slide 12: Diversified and Granular Deposit Base
Diversified and Granular Deposit Base Commercial & Other Deposits Retail Deposits Total commercial and business banking diversified geographically across Upstate NY (23%), Mid-Atlantic (9%), New England (12%), NYC area (16%), Greater Baltimore area (11%), Connecticut (9%), and other regions Commerci
Slide 13: Strong Core Funding and Liquidity
Strong Core Funding and Liquidity Liquidity Sources & Uninsured Deposits 3/31/2023 Liquidity Sources represent ~128% of Adjusted Uninsured Deposits Uninsured Deposits represent 43% of Total Deposits, 36% excluding Collateralized Deposits Average Cash Balances represent over 13% of Earning Assets Hig
Slide 14: Strong CRE Underwriting Track Record
Strong CRE Underwriting Track Record Long history and expertise in CRE lending Long-term relationships and consistent Credit Standards through economic cycles Two Chief Credit Officers over the past 40 years Diversified Loan Portfolio - CRE Concentration Decreasing The mix of C&I, CRE and Consumer l
Slide 15: Well Diversified Loan Portfolio
Well Diversified Loan Portfolio Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Loan Portfolio Composition 3/31/2023 Investor-Owned Real Estate % of Total Loans $133B Construction Permanent IRE Concentration has declined 5% since 2019
Slide 16: Superior Credit Losses Through Multiple Economic Cycles
Superior Credit Losses Through Multiple Economic Cycles NCO % of Loans Consistent credit standards through economic cycles Emphasis on secured lending: cash flow + collateral + guarantees Customer selection, supported by local market knowledge Working with customers to achieve best long-term outcome
Slide 17: Best-In-Class Credit NCO Ratios Across All Portfolios
Best-In-Class Credit NCO Ratios Across All Portfolios Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Source: S&P Global Market Intelligence and FRY9C. Note: Range measures the difference between the annual maximum and minimum for M&T a
Slide 18: Spotlight on Permanent IRE
Spotlight on Permanent IRE Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Most of our commercial real estate borrowers have “skin in the game,” which provides a buffer against potential future losses in these portfolios Weighted averag
Slide 19: Diversified and Low LTV Permanent Office CRE
Diversified and Low LTV Permanent Office CRE Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. % of Balances by LTV Range Geographic Detail Loan and Underlying Lease Maturity Profile Over 80% with LTV ≤ 70% Strong collateral coverage; ove
Slide 20: Permanent Office CRE Maturities Spread Out and Manageable
Permanent Office CRE Maturities Spread Out and Manageable Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. LTV Ranges for Upcoming Office Maturities Office maturities are spread relatively evenly over time with no upcoming ‘maturity bubb
Slide 21: Strong Capital and Low AOCI Impact
Strong Capital and Low AOCI Impact Top Quartile Core Capital Second highest CET1 ratio among peers (10.16%) Highest TCE ratio among peers (7.6%); more than 200 bps above peer median High Quality and Short Duration Securities Portfolio Agency MBS account for 46% of total and U.S. Treasury’s 30% AFS d
Slide 22: Diversified Securities Portfolio
Diversified Securities Portfolio Securities of $28.4B; 14% of total assets AFS-related AOCI represents only 0.2% potential impact on CET1 ratio Securities Portfolio Composition 3/31/2023 Duration Pretax Unrealized Loss AFS ~1.9 $355 Million HTM ~5.5 $997 Million Total Debt Securities ~4.0 $1,352 Mil
Slide 23: Strong Capital Levels Compared to Peers
Strong Capital Levels Compared to Peers Common Equity Tier 1 (CET1) Ratio 3/31/2023 Tangible Common Equity / Tangible Assets 3/31/2023 Capital levels favorable to peers both as reported and when considering potential impact of unrealized securities losses
Slide 24: Appendix
Appendix Z
Slide 25: A Bank for Communities & Making a Difference – Our ESG Commitment
A Bank for Communities & Making a Difference – Our ESG Commitment $638.4 million funded in renewable energy projects over the past three years $173.8 million in financing provided for renewable energy projects in 2021 18% reduction in our total electricity usage since 2017 21% reduction in Scope 1 a
Slide 26: Credit Ratings Summary
26 Credit Ratings Summary Fitch tings, M&T Bank Corporation Long-term Issuer/Senior debt rating AB BBB+ A A (high) ‘Subordinated debt rating a3 BBB A A Cumulative Trust preferred stock Baat BB+ BBB- A Non-cumulative Trust preferred stock Baa2 BB+ BBB- A ‘Non-cumulative perpetual preferred stock Baa2
Slide 27: Fixed Income Maturity Schedule
Fixed Income Maturity Schedule
Slide 28: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Notes: Numbers may not foot due to rounding *Net of tax
Slide 29: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Notes: Numbers may not foot due to rounding
Slide 30: M&T Peer Group
M&T Peer Group PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Huntington Bancshares Incorporated Zions Bancorporation, NA KeyCorp Truist Financial Corporation U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc. First Horizon Na