M&t Bank Corporation · NYSE:MTB
M&t Bank — Barclays – Americas Select Franchise Conference 2019
24 slides from M&t Bank's conference presentation, May 10, 2019
Slide 1: Barclays – Americas Select Franchise Conference
Barclays – Americas Select Franchise Conference May 15, 2019 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving M&T Bank Corporation’s (“M&T”) expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typically iden
Slide 3: Who is M&T Bank Corporation
Who is M&T Bank Corporation Top 20 US-based, commercial bank holding company Substantial growth from $2 billion in assets in 1983 to $120 billion at March 31, 2019 17,421 employees across 752 domestic branches in eight states and Washington DC 3.8 million customers representing 6.0 million accounts
Slide 4: M&T's Operating Model and Results
M&T’s Operating Model and Results Leading deposit share and community presence in primary markets Lending discipline guided by focus on returns Superior capital generation with low credit and PPNR volatility Stable, low-cost core deposit funding advantage Maintaining profitability in competitive env
Slide 5: Stable and Compact Geographic Footprint
Source: S&P Global Market Intelligence * In Market Deposits Only MSA Market Rank Deposits ($ billion) No. of Offices Buffalo, NY 1 26.7 56 Baltimore, MD 2 13.9 99 Delaware* 1 7.8 45 Rochester, NY 1 3.9 31 Syracuse, NY 1 3.1 30 Harrisburg, PA 2 1.8 25 York/Hanover, PA 1 1.8 27 Top Markets – as of Jun
Slide 6: Strong Presence in Our Communities
We lend in the markets where we live and work, to people and enterprises whom we know Leading Small Business Administration Lender: Baltimore - #1 Buffalo (incl. Rochester) - #1 Delaware - #1 New Jersey - #2 Philadelphia - #2 Syracuse - #2 Washington, DC - #2 Ranked 7th Nationally (total loans made)
Slide 7: Leading Deposit Market Share in Core Markets
Leading Deposit Market Share in Core Markets Source: S&P Global Market Intelligence Note: Retail deposits cap branch level deposits at $1B; YoY Deposit Cost represents change in cost of total deposits from Q1 2018 to Q1 2019 % of Retail Deposits in MSAs with Market Share > 15%
Slide 8: Stable, Low-Cost Deposit Funding
Average Noninterest Deposits – D Since 4Q ‘16 Savings, MMDA, and Interest Checking Cost Time Deposit Cost Total Deposit Cost Stable, Low-Cost Deposit Funding Source: S&P Global Market Intelligence and company reports
Slide 9: Disciplined Focus on Returns Supports Less Volatile Loan Growth
Disciplined Focus on Returns Supports Less Volatile Loan Growth… Source: S&P Global Market Intelligence and Federal Reserve H8 data Note: M&T’s loan growth is based on average loans and is adjusted for acquisitions Loan Growth (Annualized) – M&T vs. US Commercial Banks 2005-2008 2009-2012 2013-2016
Slide 10: With Above-Average Growth Through Cycles
…With Above-Average Growth Through Cycles… Loan Growth Per Share (Average Annual Change) Deposit Growth Per Share (Average Annual Change) Source: S&P Global Market Intelligence
Slide 11: Superior Credit Performance
…Superior Credit Performance… Nonaccrual Loans / Total Loans : 1991-2018 MTB 1Q19: 0.99% MTB 1Q19: 0.10% Source: S&P Global Market Intelligence NCOs / Average Loans : 1991-2018
Slide 12: Top Quartile Pre-Provision Profitability
…Top Quartile Pre-Provision Profitability… Higher PPNR Growth Higher Pre-Provision Profitability PPNR / RWA Source: S&P Global Market Intelligence Note: 1Q ’19 risk weighted assets (RWA) uses preliminary disclosed balances with estimated average RWA balances. Pre-tax Pre-Provision (PPNR) is a non-GA
Slide 13: Low Volatility in Returns
…and Low Volatility in Returns Source: S&P Global Market Intelligence ROTA range is from 1992-2018 and 2017 Metrics are adjusted for tax-reform related items. For MTB, 2017 excludes $85 mln in tax-reform related tax expense. Volatility is calculated as standard deviation of ROTA. ROTA Volatility 0.2
Slide 14: Key Ratios
Key Ratios Notes: The Efficiency Ratio and Pre-provision Net Revenue are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is available in the appendix. The Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible as
Slide 15: M&T's Business Model – a Historical Perspective
Net Interest Margin M&T’s Business Model – a Historical Perspective Years prior to 2011 not restated for LIHTC. Refer to appendix for peer group list and GAAP reconciliation. Risk Weighted Assets for 1Q19 are preliminary PPNR / RWA NCO / Average Loans Operating Efficiency Ratio MTB 1Q19: 4.04% MTB 1
Slide 16: Deploying Capital Where and When it Makes Sense
Deploying Capital Where and When it Makes Sense 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cumulative Capital Retained, Dividends and Share Repurchases 46% 54% 69%
Slide 17: M&T's Operating Model and Results
M&T’s Operating Model and Results Leading deposit share and community presence in primary markets Lending discipline guided by focus on returns Superior capital generation with low credit and PPNR volatility Stable, low-cost core deposit funding advantage Maintaining profitability in competitive env
Slide 18: Appendix and GAAP Reconciliations
Appendix and GAAP Reconciliations
Slide 19: Earnings & Dividend Growth: 1983 – Q1 '19
15% Net Operating EPS CAGR 13% Dividend CAGR Earnings & Dividend Growth: 1983 – Q1 ‘19
Slide 20: M&T Bank Corporation…a solid investment
Of the largest 100 banks operating in 1983, only 23 remain today. Among the remaining, M&T ranks 1st in stock price growth M&T Bank Corporation…a solid investment 1983 Stock Prices Source: Compustat, Bigcharts.com, and/or Company website
Slide 21: 18.0% Annual rate of return since 1980
18.0% Annual rate of return since 19801 In the top 30 of the entire universe2 of U.S. based stocks traded publicly since 1980 M&T Bank Corporation…a solid investment $1,497 invested in M&T in 1980 would be worth $1 million as of today CAGR calculated assuming reinvestment of dividends through March
Slide 22: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 23: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 24: M&T Peer Group
BB&T Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp SunTrust Banks, Inc. Huntington Bancshares Incorporated Zions Bancorporation, N.A. KeyCorp M&T Peer Group U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc.
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