M&t Bank Corporation · NYSE:MTB
M&t Bank — Barclays Capital 2010 Global Financial Services Conference
36 slides from M&t Bank's conference presentation, Sep 13, 2010
Slide 1: M&T Bank Corporation Barclays Capital 2010 Global Financial Services Conference
M&T Bank Corporation Barclays Capital 2010 Global Financial Services Conference September 13, 2010
Slide 2: Disclaimer
2 Disclaimer This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act giving the Company's expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically identified by wor
Slide 3: M&T: A "Super-Community Bank"
3 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 a
Slide 4: We provide banking services in the communities where we live and work
4 We provide banking services in the communities where we live and work We have 15 Community Banking Regions across the M&T footprint Regional Presidents represent the face of M&T in each of our markets We provide a wide range of banking services to customers in our communities Over 2 million retail
Slide 5: A history of above-average shareholder returns
5 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 34 years - 136 consecutive quarters M&T is one of two commercial banks in the S&P 500 not to have cut its dividend during
Slide 6: Financial Results
Financial Results EN Ma Bank Corporation «
Slide 7: Increased Earnings Power Into 2010
7 Increased Earnings Power Into 2010 Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets, merger-related expenses and other non-recurring expenses) as a percentage of fully taxable equivalent net interest income and non-interest revenues (
Slide 8: Diluted EPS Growth Versus Peers
#3 #1 #2 #1 #6 MTB Rank out of 15 Banks: #2 EPS CAGR Through 2009 EPS Growth Through June 2010 #3 #3 #2 #2 #8 MTB Rank out of 15 Banks: Diluted EPS Growth Versus Peers 10 yr GDP CAGR: 4.2% 8 Source: SNL Interactive, Bureau of Economic Analysis (GDP).
Slide 9: Long-term focus on revenue growth per share
Revenue reflects FTE Net Interest Income where available and Other Income, and excludes securities gains/losses and any nonrecurring items. Long-term focus on revenue growth per share 9 Revenue Growth Per Share Year-over-Year
Slide 10: Disciplined margin management
10 M&T focuses on returns and relationships rather than volumes Note: Taxable Equivalent net interest margin used for M&T and for peer banks when available. Disciplined margin management % Net Interest Margin
Slide 11: Value of relationship lending seen in both credit and margin
Value of relationship lending seen in both credit and margin Risk-Adjusted Margin = FTE Net Interest Income less Net Charge-Offs as a percentage of average earning assets. 11 Risk-Adjusted Net Interest Margin June 2010 YTD
Slide 12: M&T's model relies on maintaining above-average efficiency
M&T's model relies on maintaining above-average efficiency 12 Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets, merger-related expenses and other non-recurring expenses) as a percentage of fully taxable equivalent net interest income an
Slide 13: Continued profitability despite the credit environment
13 Operating Return on Avg. Tangible Common Equity - June '10 YTD Note: Excludes amortization of intangibles and goodwill impairment, merger-related items, and other nonrecurring items as noted by SNL. Continued profitability despite the credit environment
Slide 14: Strong Credit Performance
14 Strong Credit Performance
Slide 15: Nonaccrual and NCO ratios versus peers through the credit cycle
Historically, M&T's Nonaccrual ratio has closely tracked the peer median. However, there is a favorable divergence in the current cycle Historically, M&T's NCO ratio has been lower than the peers. The out-performance is even more pronounced in the current cycle Source: SNL Interactive. FR Y9C data u
Slide 16: Loan Mix and Credit Quality - June 2010 YTD
16 Loan Mix and Credit Quality - June 2010 YTD Source: SNL Interactive. FR Y9C data used. M&T's stable geographic footprint and conservative underwriting has resulted in one of the lowest loss rates in most loan categories........ .....and among the lowest overall delinquency rates (pipeline for pot
Slide 17: Prudent Credit and Capital Management
17 Prudent Credit and Capital Management Tangible Common Equity + Loan Loss Reserves as a % of Non-Performing Assets Peer Median Tangible Common Equity + Loan Loss Reserves as a % of Net Charge-Offs Source: SNL Interactive. Note: TCE plus reserves as a percentage of net charge-offs is calculated usi
Slide 18: MTB vs. Peers - Tangible Capital Generation
MTB vs. Peers - Tangible Capital Generation MTB has maintained an above-average capital generation rate 18 Tangible Capital Generation Rate = Operating Earnings after Common Dividends divided by Avg. Tangible Common Equity. Operating Earnings = Net Income Available to Common less Nonrecurring Revenu
Slide 19: MTB Dividends Per Share: 1983 - 2010
MTB Dividends Per Share: 1983 - 2010 Note: Data prior to 1998 does not include provisions of SFAS No. 123 and No.148 stock option expensing. +17% CAGR 19 M&T has maintained its dividend throughout the current cycle.
Slide 20: Focus on Long Term Shareholder Returns
20 Focus on Long Term Shareholder Returns Cumulative Capital Retained, Dividends and Share Repurchases 1983 - June 2010 $3.2 Billion $2.6 Billion $2.4 Billion
Slide 21: MTB: A Solid Investment
MTB: A Solid Investment EN Ma Bank Corporation 2:
Slide 22: Total Return to Shareholders
Total Return to Shareholders Top 50 Banks by Market Cap On January 1, 2000 Source: SNL Financial. 22
Slide 23: M&T Bank Corporation... a solid investment
23 Of the largest 100 banks operating in 1983, only 25 remain today M&T Bank Corporation... a solid investment Among the remaining, M&T ranks 1st in stock price growth
Slide 24: 20.4% Annual rate of return since 1980
24 20.4% Annual rate of return since 1980* 14th best return of the entire universe of over 700 U.S. based stocks that have traded publicly since 1980 M&T Bank Corporation... a solid investment *CAGR calculated assuming reinvestment of dividends through August 31, 2010. Source: IDC & Factset $3,404 i
Slide 25: M&T: A "Super-Community Bank"
25 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
Slide 26: Appendix
Appendix EN MaT Bank Corporation 2s
Slide 27: 2010 Peer Group - Largest Regional Banks
27 2010 Peer Group - Largest 15 Regional Banks BB&T Corporation Marshall & Ilsley Corporation Capital One Financial Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Synovus Financial Corp. First Horizon National Corporation SunTru
Slide 28: Reconciliation of GAAP and Non-GAAP Results of Operation
28 Reconciliation of GAAP and Non-GAAP Results of Operation * Excludes gain/(loss) on sale of securities.
Slide 29: Reconciliation of GAAP and Non-GAAP Results of Operation
29 Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 30: Credit Performance vs. Peers
30 Credit Performance vs. Peers
Slide 31: MTB has the lowest NCO % amongst peers
MTB has the lowest NCO % amongst peers 31 Source: SNL Interactive. Note: Ratio is calculated using annualized net charge-offs. NCO to Average Loans June 2010 YTD
Slide 32: Nonperformers are considerably lower than peers
Nonperformers are considerably lower than peers 32 Source: SNL Interactive Nonperforming Assets % of Loans + OREO June 30, 2010
Slide 33: Reserve coverage is best among peers
Reserve coverage is best among peers 33 Source: SNL Interactive, Note: Ratio is calculated using annualized net charge-offs. Reserves % of Net Charge-Offs June 2010 YTD
Slide 34: Commercial Credit Quality vs Peers - Q3'09 to Q2'10
34 Commercial Credit Quality vs Peers - Q3'09 to Q2'10 Source: SNL Interactive. FR Y9C data as of June 30, 2010.
Slide 35: Consumer Credit Quality vs Peers - Q3'09 to Q2'10
35 Consumer Credit Quality vs Peers - Q3'09 to Q2'10 Source: SNL Interactive. FR Y9C data as of June 30, 2010. Note: Other Consumer excludes credit cards.
Slide 36: M&T Bank Corporation Barclays Capital 2010 Global Financial Services Conference
M&T Bank Corporation Barclays Capital 2010 Global Financial Services Conference September 13, 2010
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