M&t Bank Corporation · NYSE:MTB
M&t Bank — Citigroup 2009 Financial Services Conference
38 slides from M&t Bank's conference presentation, Mar 11, 2010
Slide 1: Citigroup 2009 Financial Services Conference
Citigroup 2009 Financial Services Conference March 11, 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: Lending in our communities
5 Lending in our communities We lend in the markets where we live and work to people and enterprises whom we know #1 Small Business Lender in: 147,026 Consumer and mortgage loans $9.3B Avg loan size: $63,000 Baltimore Binghamton Buffalo Rochester Syracuse Ranked 9th Nationally #1 market share for le
Slide 6: We are only as strong as the communities we serve
6 We are only as strong as the communities we serve The M&T Charitable Foundation has donated more than $133 million to community-based organizations over the past 10 years We have been recognized as one of the top charitable companies in the U.S. M&T has earned the highest possible Community Reinve
Slide 7: We have a prudent approach to acquisitions
Median: 3.03 Deal Value at Announcement and Tangible Equity at Most Recent Quarter before Announcement Although Provident was less than $1.0 Billion in Deal Value, it has been included for reference Source: SNL Financial We have a prudent approach to acquisitions We grow when it makes sense... 7 $1.
Slide 8: Provident acquisition: Upstate vs. Maryland
As a result of the Provident acquisition, M&T now has a similar presence in MD as it does in Upstate New York, with a #1 branch share and #2 deposit share However, the MD area offers a larger, wealthier and faster growing population with more business opportunities 8 Upstate vs. Maryland Data includ
Slide 9: Our employees are long-tenured...
M&T Bank average employee tenure: 10.2 years M&T Bank average tenure of employees with >1 yr service: 10.8 years vs. US Dept. of Labor financial services industry average tenure: 4.7 years 9 Our employees are long-tenured... Management Group average tenure: 21.6 years Senior Vice President average t
Slide 10: ....and committed to M&T
10 ....and committed to M&T More than 20% of M&T's stock is owned by bank employees, executives and directors Approximately 75% of M&T's employees own stock in the company Despite the challenging environment, employee engagement at M&T increased significantly over the last two years
Slide 11: A history of above-average shareholder returns
11 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 33+ years - 134 consecutive quarters M&T is one of two commercial banks in the S&P 500 not to have cut its dividend durin
Slide 12: Financial Results
Financial Results \ MaT Bank Corporation :2
Slide 13: Increased Earnings Power Through 2009
Strong pre-credit earnings Strong credit through cycle Consistently positive earnings Generating capital 13 Increased Earnings Power Through 2009 Excludes merger-related gains and expenses and amortization expense associated with intangible assets. Efficiency Ratio reflects non-interest expense (exc
Slide 14: 2009 Peer Group - Largest Regional Banks
14 2009 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 15: M&T focuses on returns and relationships rather than volumes
15 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 16: 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. 16 Risk-Adjusted Net Interest Margin 2009
Slide 17: Long-term focus on revenue growth per share
Revenue reflects FTE Net Interest Income where available and excludes securities gains/losses and any nonrecurring items. Long-term focus on revenue growth per share Revenue Growth Per Share Year-over-Year 17
Slide 18: M&T's model relies on maintaining above-average efficiency
M&T's model relies on maintaining above-average efficiency 18 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 19: Strong Credit Performance
19 Strong Credit Performance
Slide 20: M&T's geographies and underwriting are keys to out-performance
20 M&T's geographies and underwriting are keys to out-performance HPI decline in M&T footprint significantly lower than national average Limited exposure to highly stressed markets of Florida, California, Nevada and Arizona Early intervention in stressed asset classes Reduced originations in 2005 &
Slide 21: MTB has the lowest NCO % amongst peers
MTB has the lowest NCO % amongst peers 21 Source: SNL Interactive, peer bank earnings releases. NCO to Average Loans 2009
Slide 22: Nonperformers are considerably lower than peers
Nonperformers are considerably lower than peers 22 Source: SNL Interactive, peer bank earnings releases. Nonperforming Assets % of Loans + OREO 2009
Slide 23: Reserve coverage remains among the best
Reserve coverage remains among the best 23 Source: SNL Interactive, peer bank earnings releases. Reserves % of Net Charge-Offs 2009
Slide 24: Commercial Credit Quality vs Peers - December 31, 2009
24 Commercial Credit Quality vs Peers - December 31, 2009 Source: SNL Interactive. FR Y9C data as of December 31, 2009.
Slide 25: Consumer Credit Quality vs Peers - December 31, 2009
25 Consumer Credit Quality vs Peers - December 31, 2009 Source: SNL Interactive. FR Y9C data as of December 31, 2009.
Slide 26: Focus on Long Term Shareholder Returns
26 Focus on Long Term Shareholder Returns Management's Interest aligned with Shareholders' Interests Approximately 50% Ownership between AIB, M&T Insiders and Warren Buffett Berkshire Hathaway- Warren Buffett M&T Management, Directors and Employees Ownership as of 2/26/10. Inside calculation include
Slide 27: Prudent Credit and Capital Management
27 Prudent Credit and Capital Management Tangible Common Equity + Loan Loss Reserves as a % of Non-Performing Assets Peer Median Peer Median Tangible Common Equity + Loan Loss Reserves as a % of Net Charge-Offs Source: SNL Interactive. 2009
Slide 28: Operating Return on Avg. Tangible Common Equity - 2009
28 Operating Return on Avg. Tangible Common Equity - 2009 Note: Excludes amortization of intangibles and goodwill impairment, merger-related items, and other nonrecurring items as noted by SNL. 2009 includes the FDIC special assessment. Continued profitability despite the credit environment
Slide 29: MTB: A Solid Investment
MTB: A Solid Investment XN MaT Bank Corporation 22
Slide 30: Total Return to Shareholders
Total Return to Shareholders Top 50 Banks by Market Cap On January 1, 2000 Source: SNL Financial. 30
Slide 31: Of the largest banks operating in 1983, only remain today
31 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 32: 19.8% Annual rate of return since 1980
32 19.8% Annual rate of return since 1980* 21st 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 December 2009. Source: IDC & Factset $4,440 inv
Slide 33: M&T: A "Super-Community Bank"
33 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 34: Appendix
Appendix \ MaT Bank Corporation 2
Slide 35: Reconciliation of GAAP and Non-GAAP Results of Operation
35 Reconciliation of GAAP and Non-GAAP Results of Operation * Excludes gain/(loss) on sale of securities.
Slide 36: Reconciliation of GAAP and Non-GAAP Results of Operation
36 Reconciliation of GAAP and Non-GAAP Results of Operation
Slide 37: Private Sector Employment Growth In the M&T Footprint
Private Sector Employment Growth In the M&T Footprint YoY % Change United States M&T Footprint NYS, Central PA, Philadelphia, MD, DC, NoVa & Richmond - -3.5% Sept 2008 0.2% M&T footprint job losses remain well below the U.S. average-although the gap is narrowing as the national recovery gains moment
Slide 38: Citigroup 2009 Financial Services Conference
Citigroup 2009 Financial Services Conference March 11, 2010
M&T Bank — Citigroup 2009 Financial Services Conference on 6ix