M&t Bank Corporation · NYSE:MTB
M&t Bank — Barclays Global Financial Services Conference 2012
33 slides from M&t Bank's conference presentation, Sep 10, 2012
Slide 1: Barclays Global Financial Services Conference
Exhibit 99 Barclays Global Financial Services Conference September 10, 2012
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’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identifiedby words
Slide 3: Today's Agenda
Today’s Agenda Financial Update Opportunity in Metropolitan NYC with Hudson City Bancorp The M&T Bank Story 3
Slide 4: Financial Update
Financial Update EN Mal Bank 4
Slide 5: Strong 2Q12 Earnings Results
Strong 2Q12 Earnings Results GAAP Earnings 2006 2007 2008 2009 2010 2011 1Q12 2Q12 Net Income ($MM) 839 654 556 380 736 859 206 233 EPS ($ per share) 7.37 5.95 5.01 2.89 5.69 6.35 1.50 1.71 Net Operating Earnings Net Operating Income ($MM) 881 704 599 455 755 884 218 247 Net Operating EPS ($ per sha
Slide 6: 2Q12 Earnings Results (continued)
2Q12 Earnings Results (continued) Continued strong linked-quarter loan / core deposit growth EOP loans up 13% annualized EOP core deposits up 14% annualized Continued benefit from HSBC branch divestitures in Upstate NY – C&I loans up 18% annualized – Average core deposits up 15% annualized Net inter
Slide 7: Key Ratios
Key Ratios 2006 2007 2008 2009 2010 2011 1Q12 2Q12 Net Interest Margin 3.70% 3.60% 3.38% 3.49% 3.84% 3.73% 3.69% 3.74% Superior (1) pre-credit Efficiency Ratio -Tangible 51.51% 52.77% 54.35% 56.50% 53.71% 60.43% 61.09% 56.86% (1) earnings Pre-tax, Pre-provision Earnings ($MM) 1,312 1,156 1,152 1,123
Slide 8: Disclosures on Acquired Loans in 10-K & 10-Q
Disclosures on Acquired Loans in 10-K & 10-Q Accretable Difference Rollforward 1 ($ millions) 2011 1Q12 2Q12 Balance at beginning of period $ 457 $ 839 $ 770 Additions 688 - - Interest income (295) (81) (90) Reclassified from (to) nonaccretable balance, net 11 0 140 Other (22) 12 (31) Balance at end
Slide 9: Wilmington Trust cost synergies help to mitigate increased environment costs
Wilmington Trust cost synergies help to mitigate increased environment costs 70% Efficiency Ratio 65.02%65.15% 65% 61.09% 60% 57.78% 55% 56.86% 51.53% 50% 45% '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 1Q12 2Q12 MTB Peer Median The Efficiency Ratio is a non-GAAP financial measure. M&T’s Efficiency
Slide 10: Public Offering of M&T's TARP Preferred Stock by US Treasury
Public Offering of M&T’s TARP Preferred Stock by US Treasury Sold to third-party investors in two series: • Series A - $230mm – remainder of $600mm issued by M&T in Dec 2008 • Series C - $151.5mm – issued by Provident Bankshares in Nov 2008 Modified certain terms of the two series 1: • Modify divide
Slide 11: Opportunity in Metropolitan NYC with Hudson City Bancorp
Opportunity in Metropolitan NYC with Hudson City Bancorp 11
Slide 12: Hudson City Merger: Accretive to Earnings & Capital
Hudson City Merger: Accretive to Earnings & Capital Tier 1 Common ratio 8.25% - 8.50% pro forma at closing Immediate 30 - 40 bps benefit to Tier 1 common ratio Accretive to Capital Comparable benefit under recent Basel III proposals (1) Improves tangible capital generation Financially IRR of 18%+ At
Slide 13: M&T's Commercial Portfolio and Infrastructure in HCBK's Markets
M&T’s Commercial Portfolio and Infrastructure in HCBK’s Markets M&T’s regional teams have successfully expanded its lending portfolio within these regions despite a limited branch network Established commercial lending presence would be augmented by expanded branch network M&T’s Commercial Loans in
Slide 14: Summary of Key Terms
Summary of Key Terms Consideration: Consideration per Share: Value fixed at 0.08403 M&T shares Consideration Mix: 60% stock, 40% cash Total Value at Announcement (1) : $7.22 per share, or $3.7 billion 0.8x tangible book value Due Diligence: Comprehensive review, including loans, securities, and borr
Slide 15: Restructuring Deleverages Balance Sheet and Improves Liquidity
Restructuring Deleverages Balance Sheet and Improves Liquidity Balance sheet reduction results in a de-risked balance sheet comprised of residential mortgages funded with core deposits Unwind high cost FHLB and repo borrowings – Q2’12 borrowing cost 4.20% Including fair value adjustments ($2.5 billi
Slide 16: Loan Credit Marks
Loan Credit Marks Favorable residential mortgage portfolio characteristics mitigate credit risk exposure Portfolio Review Extensive due diligence by M&T, including detailed on-site loan-level file reviews Favorable underwriting characteristics – Original LTV: 68% Estimated credit mark of $433 – Aver
Slide 17: Diversified and De-Risked Loan Portfolio
Diversified and De-Risked Loan Portfolio Transaction would mitigate Hudson City’s residential mortgage monoline focus, resulting in a more diversified loan portfolio Commercial real estate (CRE) would comprise smaller share of M&T’s pro forma loan portfolio Acquired residential mortgage portfolio is
Slide 18: Low Integration Risk
Low Integration Risk M&T will leverage its extensive integration experience, which includes integration of institutions significantly more complex than Hudson City Extensive prior integration experience: 23 acquisitions in last 25 years Demonstrated success in previous thrift conversions to M&T comm
Slide 19: M&T Integration Approach and Experience
M&T Integration Approach and Experience Our commitment to seamless merger and integration activity is practiced and refined. The following are staples of our approach: For our 70 most senior people, the Significant commitment M&T has Wilmington Trust merger was on on the part of thousands demonstrat
Slide 20: 2008-2013 Expanding the Franchise in a shareholder friendly manner
2008-2013 Expanding the Franchise in a shareholder friendly manner Compact geography compatible with M&T’s hands-on management 2008 M&T Bank – Pre Provident 2013 Proforma – M&T & Hudson City Radius = 203 miles Radius = 230 miles 20
Slide 21: The M&T Bank Story
The M&T Bank Story EN Mal Bank 21
Slide 22: M&T Bank Corporate Profile
M&T Bank Corporate Profile Top 20 US-based full-service commercial bank holding company by assets and Top 15 by market cap Founded in 1856 $81 billion total assets 735 domestic branches and more than 2,000 ATMs 15,223 employees located in New York, Maryland, Pennsylvania, Washington, D.C., Virginia,
Slide 23: M&T: A "Super-Community Bank"
M&T: A “Super-Community Bank” Our approach is simple: We provide banking services in communities where we live and work We focus on carefully underwritten lending, based on local knowledge We take a prudent approach to acquisitions – we grow when and where it makes sense We view our long-tenured and
Slide 24: Commitment to Our Communities
Commitment to Our Communities Charitable Giving Donated more than $147 million to community-based organizations over the past 10 years Community Investment Earned highest possible Community Reinvestment Act rating on every exam since 1982 Volunteerism In the first half of 2012, over 3,600 M&T employ
Slide 25: Strong Presence In Our Communities
Strong Presence In Our Communities We lend in the markets where we live and work to people and enterprises whom we know #1 market share for lead bank #1 Small Business Administration relationships Lender in: among middle market clients in:(1) Baltimore Baltimore Binghamton Binghamton Buffalo Buffalo
Slide 26: A History of Above-Average Shareholder Returns
A History of Above-Average Shareholder Returns Our “super-community bank” model is validated through our long-term results M&T has been profitable in every quarter of the last 36 years – 144 consecutive quarters Since 1983, when Chairman Robert Wilmers came to M&T, achieved compound annual growth in
Slide 27: Barclays Global Financial Services Conference
Barclays Global Financial Services Conference September 10, 2012
Slide 28: Appendix
Appendix EN M&T Bank
Slide 29: Outlook Consistent with Remarks on July earnings call
Outlook Consistent with Remarks on July earnings call For FY2012, expect NIM lower than FY2011’s 3.73% • Expect growth in net interest income throughout 2012 Loan growth remains steady; usual seasonal slowdown in floor plan activity in 3Q12 Mortgage banking activity remains strong Expect continued i
Slide 30: Drivers of Increase in Efficiency Ratio 2006 - 2011
Drivers of Increase in Efficiency Ratio 2006 - 2011 Estimated Drivers of M&T’s Increased Efficiency Ratio: 2006 - 2011 62.0% 60.0% 2.5 – 3.0% 58.0% 1.0 – 1.5% 56.0% 2.5 – 3.0% 54.0% 60.4% 1.5 – 2.0% 52.0% 50.0% 51.5% 48.0% 46.0% MTB Efficiency Elevated Credit Higher FDIC Lower RevenueWilmington Trus
Slide 31: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Net Income 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 2Q12 $'s in millions Net income $268.2 $353.1 $456.7 $573.9 $722.5 $782.2 $839.2 $654.3 $555.9 $379.9 $736.2 $859.5 $206.5 $233.4 Intangible amortization* 56.1 99.4 32.5 47.8 46.1
Slide 32: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 2006 2007 2008 2009 2010 2011 1Q12 2Q12 $'s in millions Average assets $ 55,839 $ 58,545 $ 65,132 $ 67,472 $ 68,380 $ 73,977 $ 78,026 $ 80,087 Goodwill (2,908) (2,933) (3,193) (3,393) (3,525) (3,525) (3,525) (3,525) Core deposit and other i
Slide 33: Important Additional Information
Important Additional Information In connection with the Merger, M&T Bank Corporation (“M&T”) will file with the U.S. Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that will include a Joint Proxy Statement of M&T and Hudson City Bancorp, Inc. (“Hudson City”) and
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