M&t Bank Corporation · NYSE:MTB
M&t Bank — Investor Presentation (March 2025)
39 slides from M&t Bank's investor presentation, Mar 4, 2025
Slide 1: Investor Update 1st Quarter 2025
Investor Update 1st Quarter 2025 MARCH 2025 Exhibit 99.1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 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 Commissio
Slide 3: Purpose, Mission and Operating Principles
3 Purpose Mission Operating Principles Local Scale Credit Discipline Operating & Capital Efficiency
Slide 4: Focused on Four Priorities
Focused on Four Priorities 4 Build our New England and Long Island Markets Optimize our Resources through Simplification Make our Systems and Processes Resilient and Scalable Continue to Develop and Scale our Capability to Manage Risk We continue our mission to simplify M&T and make investments that
Slide 5: Key Awards and Accolades
5 J.D. Power 2024 U.S. Banking Mobile App Satisfaction Study; among banks with $70B to $200B in deposits. Visit jdpower.com/awards for more details. Key Awards and Accolades • • • • • • •
Slide 6: Diversified Business Model
Diversified Business Model Experienced teams provide a wide-range of credit, liquidity and capital markets solutions to meet our customer needs, delivered through a local engagement model and industry expertise on a national scale. Strategically built for the communities in which we operate. High-to
Slide 7: Local Scale in Key Markets
Local Scale in Key Markets 7 Source: S&P Global Market Intelligence, FDIC Summary of Deposits (1) Top banks and thrifts by number of branches in Northeast / Mid-Atlantic regions (CT, DC, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV). M&T as of 1/31/2025, excludes two domestic branches outside of N
Slide 8: Through the Cycle Profitability Advantage
Through the Cycle Profitability Advantage… 8 Note: (1) See Appendix 1 and 2 for reconciliation of GAAP with these non-GAAP measures. Net Operating ROTA(1) Better than Peer PPNR Generation & Credit Losses • Aided by NIM, efficiency and credit loss outperformance Consistent Profitability Advantage • O
Slide 9: Combined with Consistent Growth
$1.60 $5.35 $- $1 $2 $3 $4 $5 $6 2004 2009 2014 2019 2024 $23.62 $109.36 $- $20 $40 $60 $80 $100 $120 2004 2009 2014 2019 2024 …Combined with Consistent Growth Dividend Per Share Tangible Book Value Per Share MTB: 6.2% CAGR Peer Median: 0.9%CAGR MTB: 8.0% CAGR Peer Median: 1.7% CAGR CAGR – TBVPS Gro
Slide 10: Superior Pre-Credit Earnings
2019 2020 2021 2022 2023 2024 Superior Pre-Credit Earnings Net Interest Margin 3.84% 3.16% 2.76% 3.39% 3.83% 3.58% Efficiency Ratio (1) 55.7% 56.3% 59.0% 56.6% 54.9% 56.9% PPNR ($, Millions) (1) $2,753 $2,579 $2,445 $3,471 $4,232 $3,979 PPNR to RWA (1) 2.7% 2.4% 2.3% 2.7% 2.8% 2.6% Strong Credit Met
Slide 11: Solid Performance in Key Metrics against Peers
Solid Performance in Key Metrics against Peers 11 ROTA(1) FY24 Net Interest Margin FY24 Efficiency Ratio(1) FY24 PPNR / RWA(1) FY24 NCO / Loans FY24 Note: (1) See Appendix 1 and 2 for reconciliation of GAAP with these non-GAAP measures. Source: S&P Global Market Intelligence and company filings 1.30
Slide 12: M&PBank Corporation | x2
M&PBank Corporation | x2
Slide 13: 1Q 2025 Trends
1Q 2025 Trends Smaller balance sheet with sequentially lower NII and higher NIM Expense trending expectations and reflects seasonal compensation Continued strength in fee income Capital and Asset Quality Trending Expectations • Quarterly decline in average loans, driven by CRE • Lower average deposi
Slide 14: 2025 Outlook
2025 Outlook 14 2025 Outlook Comments In c o m e S ta te m e n t Net Interest Income Taxable-equivalent $7.1 billion to $7.2 billion • NIM in the mid 3.60s • Range dependent on deposit trends and loan growth and shape of the yield curve • Trending toward low end of the range Fee Income $2.5 billion
Slide 15: Effectively Neutral Asset Sensitivity
$158, 2.0% $20, 0.3% $16, 0.2% $(216), -2.7% $(46), -0.7% $(36), -0.5% Dec. '22 Dec. '23 Dec. '24 Effectively Neutral Asset Sensitivity (1) Represents estimated impact on NII resulting from a gradual and parallel shift in interest rates during first modeling year. Sensitivity of NII to Changes in In
Slide 16: Swap Portfolio Details
Swap Portfolio Details 16 ▪ Rates for 2025 forward-starting swaps are higher than current active swap rates resulting in higher active receive rates in 2025 ▪ CF Hedges – executed $10.0B of forward-starting receive fix swaps in 2024 : weighted average start December 2025, ~3.72% ▪ FV Debt Hedges - e
Slide 17: Fee Income Diversification
33% 21% 13% 5% 8% 7% 12% Fee Income Diversification 17 • Consistent growth in noninterest income over past year • Noninterest income growth more than offset foregone noninterest income from M&T Insurance Agency (4Q22) and Collective Investment Trust (2Q23) sales • Total noninterest income of 26% of
Slide 18: Granular, Diversified Core Deposit Funding & Strong Liquidity Position
Granular, Diversified Core Deposit Funding & Strong Liquidity Position Granular Deposit Base Diversified Deposit Base Stable & Long-Tenured Relationships Strong Liquidity Profile • 60% of deposits are insured or collateralized as of 12/31/2024 • Average consumer deposit account balance is $14,000 •
Slide 19: Local Scale Leads to Superior Deposit Franchise
2.35% 2.19% 2.16% 2.15% 2.05% 2.02% 1.93% 1.90% 1.89% 1.88% 1.81% 1.48% Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 MTB Peer 4 Peer 3 Peer 2 Peer 1 0% 10% 20% 30% 40% 50% 60% 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1
Slide 20: Diversified and Granular Deposit Base
Diversified and Granular Deposit Base • Diversified across industries and geographies • Average relationship tenure of 16 years • Average account size $4MM; median $406k • ~60% operating balances Average Deposits 4Q24 Institutional Services & Wealth Management Retail Bank Commercial Bank • Consists
Slide 21: Strong Core Funding and Liquidity
• Liquidity Sources represent ~133% of Adjusted Uninsured Deposits as of 12/31/2024 • Uninsured Deposits represent 45% of Total Deposits, 40% excluding Collateralized Deposits as of 12/31/2024 • 4Q24 Average Cash Balances represent 12% of Earning Assets Strong Core Funding and Liquidity Liquidity So
Slide 22: Strong CRE Underwriting Track Record
Strong CRE Underwriting Track Record All information presented as of 12/31/2024 Long History & Expertise in CRE Lending • Long-term relationships and consistently conservative Credit Standards through economic cycles • Recently appointed Chief Credit Officer – only the third since 1983 Permanent IRE
Slide 23: Well Diversified Loan and Leases Portfolio
Multifamily $5.6B, 4% Retail $4.7B, 4% Office $4.2B, 3% Healthcare $2.0B, 2% Hotel $2.0B, 1% Industrial & Other $2.2B, 2% Construction $6.0B, 4% C&I - Owner Occ. $11.0B, 8% C&I $50.5B, 37% Cons. Real Estate $23.2B, 17% Consumer $24.2B, 18% Permanent CRE $20.8B, 15% Well Diversified Loan and Leases P
Slide 24: Superior Credit Losses Through Multiple Economic Cycles
Source: S&P Global Market Intelligence and FRY9C. Note: Industry data represents all FDIC-insured institutions from the FDIC’s Quarterly Banking Profile (“QBP”). Average, max, and range are weighted FY1990-FY2024. Superior Credit Losses Through Multiple Economic Cycles M&T Credit Philosophy NCO % of
Slide 25: Spotlight on Permanent IRE
Spotlight on Permanent IRE • Hallmark of structures requires material upfront ‘skin in the game’ to ensure alignment and provide a buffer against potential future losses • Weighted-average LTV is 55%; approximately 85% of the total Permanent IRE portfolio has an LTV of 70% or less • Approximately 75
Slide 26: Diversified and Low LTV Permanent Office CRE
Diversified and Low LTV Permanent Office CRE (1) Lease maturity data for loans with >$10MM in exposure. Balance ($, B) % of Total Loans WAVG LTV New York City $0.6 0.4% 51% Greater Boston $0.4 0.3% 87% Connecticut $0.4 0.3% 52% New Jersey $0.3 0.2% 61% VT/NH/ME $0.2 0.2% 60% Western New York $0.2 0.
Slide 27: Credit Metrics
Credit Metrics Nonaccrual Loans and Leases Net Charge-offs Provision for Credit Losses Allowance for Credit Losses 27 $225 $200 $150 $120 $140 4Q23 1Q24 2Q24 3Q24 4Q24 $ I N M IL L IO N S$148 $138 $137 $120 $160 0.44% 0.42% 0.41% 0.35% 0.47% 4Q23 1Q24 2Q24 3Q24 4Q24 $ I N M IL L IO N S NCO ($) Net C
Slide 28: Criticized C&I and CRE Loans and Leases
Criticized C&I and CRE Loans and Leases Criticized loans and leases decreased -$1 billion QoQ: • C&I decreased -$302 million – Driven predominantly by motor vehicle and recreational finance dealers, services industry and health services • CRE decreased -$691 million – Permanent CRE -$431 million – C
Slide 29: Strong Capital and Low AOCI Impact
Strong Capital and Low AOCI Impact • Top quartile CET1 ratio among peers (11.7%) • Top quartile TCE ratio among peers (9.1%); >200 bps above peer median • Elected to opt into the 2025 Stress Test • Expect CET1 to decline to 11% in 2025 • Share repurchase flexibility, depending on loan growth • Agenc
Slide 30: Diversified Securities Portfolio
Agency MBS $16.0B US Treasury $8.9B Agency CMBS $5.7B Municipal Bonds $2.3B Equity & Other $1.0B Diversified Securities Portfolio (1) Mortgage securities include estimated prepayment under market forward interest rates. $34B Securities Portfolio Composition 12/31/2024 • Securities of $34.1B; 16% of
Slide 31: Strong Capital Levels Compared to Peers
5.6% 5.7% 6.0% 6.1% 6.6% 6.8% 6.8% 7.0% 7.0% 7.6% 8.4% 9.1% Peer 11 Peer 10 Peer 9 Peer 8 Peer 7 Peer 6 Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 MTB Strong Capital Levels Compared to Peers • Capital levels favorable to peers both as reported and when considering AOCI • Modest impact from including AOCI in
Slide 32: Why invest in M&T?
Why invest in M&T? • Long term focused with deeply embedded culture • Business operated to represent the best interests of all key stakeholders • Energized colleagues consistently serving our customers and communities • A safe haven for our clients as proven during turbulent times and crisis • Exper
Slide 33: Appendices
Appendices M&P Bank Corporation | 3s
Slide 34: GAAP to GAAP - Adjusted (Non-GAAP) Reconciliation
Appendix 1 Note: M&T is providing supplemental reporting of its results on a “GAAP – Adjusted” basis, from which M&T excludes the after-tax effect of certain notable items of significance. Although “GAAP – Adjusted” income as presented by M&T is not a GAAP measure, M&T’s management believes that thi
Slide 35: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix 2 Note: M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit and other intangible asset balan
Slide 36: GAAP to Net Operating (Non-GAAP) Reconciliation: Efficiency Ratio
Appendix 2 GAAP to Net Operating (Non-GAAP) Reconciliation 36 In millions 2020 2021 2022 2023 2024 4Q23 3Q24 4Q24 Efficiency ratio Noninterest expense $3,385 $3,612 $5,050 $5,379 $5,359 $1,450 $1,303 $1,363 Less: Amortization of core deposit and other intangible assets 15 10 56 62 53 15 12 13 Less:
Slide 37: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation 37 In millions 2020 2021 2022 2023 2024 4Q23 3Q24 4Q24 Average assets Average assets $135,480 $152,669 $190,252 $205,397 $211,220 $208,752 $209,581 $211,853 Goodwill (4,593) (4,593) (7,537) (8,473) (8,465) (8,465) (8,465) (8,465) Core deposit and
Slide 38: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation 38 In millions 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2023 9/30/2024 12/31/2024 Total assets Total assets $142,601 $155,107 $200,730 $208,264 $208,105 $208,264 $211,785 $208,105 Goodwill (4,593) (4,593) (8,490) (8,465) (8,46
Slide 39: M&T Peer Group
M&T Peer Group PNC Financial Services Group, Inc.Comerica Incorporated Regions Financial CorporationFifth Third Bancorp Huntington Bancshares Incorporated Zions Bancorporation, NAKeyCorp Truist Financial Corporation U.S. Bancorp M&T Bank CorporationCitizens Financial Group, Inc. First Horizon Nation