M&t Bank Corporation · NYSE:MTB
M&t Bank — Investor Presentation (May 2024)
39 slides from M&t Bank's investor presentation, May 3, 2024
Slide 1: Investor Update 2nd Quarter 2024
Investor Update 2nd Quarter 2024 May 2024 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: Purpose, Mission and Operating Principles
Purpose To make a difference in people’s lives. Mission We are a bank for communities – committed to improving the lives of our customers and all the communities we touch. Operating Principles Local Scale Credit Discipline Operating & Capital Efficiency
Slide 4: M&T - A High Performing Community-Focused Bank
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 Stability Low volatility in earnings Strong balance sheet Profitability Superior profitability and earnings and di
Slide 5: 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 6: Local Scale in Key Markets
Local Scale in Key Markets 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 4/25/2024, excludes two domestic branches outside of Nor
Slide 7: Through the Cycle Profitability Advantage
Through the Cycle Profitability Advantage… 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 Over th
Slide 8: Combined with Consistent Growth
…Combined with Consistent Growth Gray bars represent years with acquisitions with over $1 billion in assets Total Assets Dividend Per Share Diluted Net Operating EPS Tangible Book Value Per Share 9.6% CAGR 9.0% CAGR 8.0% CAGR 6.1% CAGR
Slide 9: Key Ratios
Key Ratios Note: (1) See Appendix 1 and 2 for reconciliation of GAAP with these non-GAAP measures. 2019 2020 2021 2022 2023 1Q23 4Q23 1Q24 Superior Pre-Credit Earnings Net Interest Margin 3.84% 3.16% 2.76% 3.39% 3.83% 4.04% 3.61% 3.52% Efficiency Ratio (1) 55.7% 56.3% 59.0% 56.6% 54.9% 55.5% 62.1% 6
Slide 10: Solid Performance in Key Metrics against Peers
Solid Performance in Key Metrics against Peers ROTA(1) 1Q24 Net Interest Margin 1Q24 Efficiency Ratio(1) 1Q24 PPNR / RWA(1) 1Q24 NCO / Loans 1Q24 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
Slide 11: Areas of Focus
Areas of M&f& Bank Corporation | 11
Slide 12: 2024 Outlook
2024 Outlook 2024 Outlook Comments Income Statement Net Interest Income Taxable-equivalent $6.8 billion + NIM in the 3.50s Reflects two rate cuts Fee Income $2.3 billion to $2.4 billion Growth in trust income from higher equity markets GAAP Expense Includes intangible amortization Excludes increment
Slide 13: 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 64% of deposits are insured or collateralized as of 3/31/2024 Average consumer deposit account balance is $15,000 Average
Slide 14: Local Scale Leads to Superior Deposit Franchise
Sources: S&P Global Market Intelligence Local Scale Leads to Superior Deposit Franchise Noninterest-bearing deposits represented 30% of 1Q 2024 average total deposits for M&T or 32% of total deposits excluding brokered, compared to 24% peer median 2003-1Q24 Average M&T 0.73% Peer Median 0.89% Differ
Slide 15: Diversified and Granular Deposit Base
Diversified and Granular Deposit Base Diversified across industries and geographies Average relationship tenure of 15 years Average account size $4MM; median $360k ~63% operating balances Average Deposits 1Q24 Institutional Services & Wealth Management Retail Bank Commercial Bank Consists primarily
Slide 16: Strong CRE Underwriting Track Record
Strong CRE Underwriting Track Record All information presented as of 3/31/2024 Long History & Expertise in CRE Lending Long-term relationships and consistently conservative Credit Standards through economic cycles Two Chief Credit Officers over the past 40 years Diversified Loan Portfolio 33% Consum
Slide 17: Well Diversified Loan Portfolio
Permanent CRE $25.2B, 19% Well Diversified Loan Portfolio (1) Regulatory CRE includes Construction (HC-C 1.a.(1) and HC-C 1.a.(2)), Multifamily (HC-C 1.d), non-owner occupied (HC-C 1.e.(2)) and non-real estate secured CRE (HC-C, Memo 2). Loan Portfolio Composition 3/31/2024 Regulatory CRE % of Tier
Slide 18: 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-FY2023. Superior Credit Losses Through Multiple Economic Cycles M&T Credit Philosophy NCO % of
Slide 19: 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 56%; over 80% of the total Permanent IRE portfolio has an LTV of 70% or less Approximately 70% of the Perman
Slide 20: Credit Metrics
Credit Metrics Nonaccrual Loans Net Charge-offs Provision for Credit Losses Allowance for Credit Losses
Slide 21: Criticized C&I and CRE Loans
Criticized C&I and CRE Loans +$364 million QoQ Criticized Increase: C&I increased +$641 million Nonautomotive dealers and manufacturing CRE decreased -$277 million Permanent CRE -$139 million Construction -$138 million 97% of criticized accrual loans are current 59% of criticized nonaccrual loans ar
Slide 22: Strong Capital and Low AOCI Impact
Strong Capital and Low AOCI Impact Top quartile CET1 ratio among peers (11.1%) Top quartile TCE ratio among peers (8.0%); nearly 200 bps above peer median Agency MBS/CMBS account for 55% of total and U.S. Treasurys 31% AFS duration ~2.0 years and HTM duration ~5.4 years, total debt securities durati
Slide 23: Strong Capital Levels Compared to Peers
Strong Capital Levels Compared to Peers Capital levels favorable to peers both as reported and when considering AOCI Strong capital position benefits M&T under current and proposed rules CET1 ratio would exceed SCB minimum levels under proposal Modest impact from including AOCI in regulatory capital
Slide 24: Sustainability
Sustainability M&& Bank Corporation | 24
Slide 25: 2023 Sustainability Accomplishments and Highlights
Making a positive impact on our communities, customers and colleagues Fostering Prosperity in Our Communities Investing in Our Employees Strong Governance and Consistent Leadership Preserving our Environment 2023 Sustainability Accomplishments and Highlights Note: All data except for SBA data are as
Slide 26: 2023 Highlights – Sustainable Finance
2023 Highlights – Sustainable Finance $670.9 million made in 2023 Renewable Energy - $318.8 million Green Buildings - $310.7 million Clean Transportation - $17.9 million Energy Efficiency - $9.7 million Pollution Prevention and Control - $8.7 million Circular Economy - $5.0 million $2.5 billion made
Slide 27: Climate Risk Integration
Climate Risk Integration Completed an updated Climate Risk Identification Report inclusive of the post-PUB conversion footprint Initiated scenario analysis activities with initial focus on exploring transition risk impacts under the Network for Greening the Financial System (NGFS) scenarios Formaliz
Slide 28: Reduce Carbon Footprint
Reduce Carbon Footprint *Scope 1 Legacy M&T in 2022 and Scope 1 (M&T Combined) includes leased properties. Scope 2 Legacy M&T in 2022 and Scope 2 (M&T Combined) includes leased properties and EU sites. Third-party assurance for Scope 1, 2 and 3 greenhouse gas emissions is currently underway. An upda
Slide 29: Executive Compensation
Executive Compensation See M&T’s 2024 Proxy Statement for additional information Performance Hurdled Stock Units (“PHSUs”), Performance Vested Stock Units (“PVSUs”), Non-Qualified Stock Options (“NQSOs”). * Excludes one NEO who was not granted an LTI award in 2024 in light of their upcoming transiti
Slide 30: 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 Experienced and
Slide 31: Appendices
Appendices M&& Bank Corporation | 31
Slide 32: GAAP to GAAP - Adjusted 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 management believes that this
Slide 33: GAAP to Net Operating 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 34: GAAP to Net Operating Reconciliation - Efficiency Ratio
Appendix 2 GAAP to Net Operating (Non-GAAP) Reconciliation In millions 2019 2020 2021 2022 2023 1Q23 4Q23 1Q24 Efficiency ratio Noninterest expense $3,469 $3,385 $3,612 $5,050 $5,379 $1,359 $1,450 $1,396 Less: Amortization of core deposit and other intangible assets 19 15 10 56 62 17 15 15 Less: Mer
Slide 35: GAAP to Net Operating - Adjusted Reconciliation
Appendix 2 GAAP to Net Operating - Adjusted (Non-GAAP) Reconciliation In millions 2019 2020 2021 2022 2023 1Q23 4Q23 1Q24 Efficiency ratio - Adjusted Noninterest expense $3,469 $3,385 $3,612 $5,050 $5,379 $1,359 $1,450 $1,396 Less: Amortization of core deposit and other intangible assets 19 15 10 56
Slide 36: GAAP to Tangible Reconciliation
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation In millions 2019 2020 2021 2022 2023 1Q23 4Q23 1Q24 Average assets Average assets $119,584 $135,480 $152,669 $190,252 $205,397 $202,599 $208,752 $211,478 Goodwill (4,593) (4,593) (4,593) (7,537) (8,473) (8,490) (8,465) (8,465) Core deposit and ot
Slide 37: GAAP to Tangible Reconciliation
Appendix 2 GAAP to Tangible (Non-GAAP) Reconciliation In millions 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 3/31/2023 12/31/2023 3/31/2024 Total assets Total assets $119,873 $142,601 $155,107 $200,730 $208,264 $202,956 $208,264 $215,137 Goodwill (4,593) (4,593) (4,593) (8,490) (8,465) (
Slide 38: Credit Ratings
Credit Ratings As of 4/30/2024 Moody’s Standard and Poor’s Fitch Morningstar DBRS M&T Bank Corporation Senior debt Baa1 BBB+ A A (high) Subordinated debt Baa1 BBB A- A M&T Bank Short-term deposits Prime-1 A-2 F1 R-1 (middle) Long-term deposits A1 A- A+ AA (low) Senior Debt Baa1 A- A AA (low) Subordi
Slide 39: 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