M&t Bank Corporation · NYSE:MTB
M&t Bank — Deutsche Bank Global Financial Services Conference 2017
22 slides from M&t Bank's conference presentation, May 31, 2017
Slide 1: Deutsche Bank Global Financial Services Conference
Exhibit 99.1 Deutsche Bank Global Financial Services Conference May 31, 2017
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 Bank Corporation’s (“M&T”) expectations or predictions of future financial or business performance or conditions. Forward-looking statements are typ
Slide 3: Introduction
Introduction M&I Bank Corporation
Slide 4: 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 $123 billion at March 31, 2017 16,791 employees across 799 domestic branches in eight states and Washington DC 3.7 million customers representing 5.9 million accounts
Slide 5: Key Ratios
Key Ratios 2011 2012 2013 2014 2015 2016 1Q'16 4Q'16 1Q'17 Superior Pre-Credit Earnings Net Interest Margin 3.73% 3.73% 3.65% 3.31% 3.14% 3.11% 3.18% 3.08% 3.34% (1) Efficiency Ratio – Tangible 59.49% 55.28% 55.98% 59.29% 57.98% 56.10% 57.00% 56.42% 56.93% (1) PPNR 1,531 1,796 1,951 1,766 1,845 2,24
Slide 6: Low Volatility: Consistently Profitable Throughout the Cycle
Low Volatility: Consistently Profitable Throughout the Cycle Operating Return on Tangible Common Equity: 2007 – Q1 2017 50% Max Min Median 40% 30% 20% M&T’s minimum 18.0% ROTCE second 10% highest among peers 12.3% 11.6% 9.6% 0% -2.0% -10% -8.1% -11.9% -20% -13.4% -19.5% -21.8% -30% -31.2% -40% -37.8
Slide 7: Focus on Returns Supports Outperformance
Focus on Returns Supports Outperformance Notes: Years prior to 2011 not restated for LIHTC. Refer to appendix for peer group list and GAAP reconciliation. 7 Source: SNL Financial.
Slide 8: Earning Asset Trends
Earning Asset Trends Interest-Earning Assets (Average Balances) ($ in billions) Q1 2017 Q/Q Y/Y Balance Growth (%)¹ Growth (%) Loans: M&T Industry³ M&T Industry³ Commercial & Industrial $22.3 7% > (7%) 8% > 3% Commercial loan growth supported by Hudson City transformation Commercial Real Estate $33.
Slide 9: Less Volatile Loan Growth Through Credit Cycles
Less Volatile Loan Growth Through Credit Cycles 20% 17.5% Sustained loan 17.0% 14.6% growth during 15% financial crisis 10.6% 10.3% 9.0% 8.8% 9.3% 10% 8.1% 8.6% 7.3% 5.3% 6.3% 5.1% 9.3% 4.3% 5% 7.5% 6.9% 4.7% 3.1% 4.4% 0% 1.0% 1.4% Slower growth vs. Higher 2016 growth -5% (5.0%) industry average fro
Slide 10: M&T Commercial Real Estate
M&T Commercial Real Estate M&T’s CRE portfolio remains broadly diversified by property type and geography, with a significant owner-occupied component; credit metrics stable CRE Portfolio Composition – March 31, 2017 Geographic Mix – Permanent Investor CRE ($ in billions) $ % of Total As of December
Slide 11: Retail Exposure
Retail Exposure Retail exposure is diversified and granular in both CRE and C&I Retail Sector Loan Balances Geographic Mix – Retail Permanent Inv. CRE ($ in billions) As of December 31, 2016 $7.0 NYC Largely multi-use properties $6.2 $6.2 C&I with residential retail or office component $6.0 Majority
Slide 12: Auto Lending
Auto Lending M&T’s auto lending strategy and volumes have remained consistent; focus on in-footprint lending to prime customers Auto % of Total Loans (March 31, 2017)¹ 18% 16.7% 16% 14% 11.6% 12% 9.8% 10% 8.4% 8% 7.0% 6.4% Group Median: 6.1% 5.8% 4.8% 6% 3.5% 3.0% 4% 2% 0.2% 0.0% 0% Indirect auto lo
Slide 13: Deploying Capital Where and When it Makes Sense
Deploying Capital Where and When it Makes Sense Cumulative Capital Retained, Dividends and Share Repurchases 2003 – 2007 2008 – 2011 2012 – 2015 2016 Pre-Crisis Crisis New Regulatory Standards Post-Hudson City 20% 15% 85% 80% 48% 65% 50% 52% 52% 35% 52% 35% 35% 28% Dividends Repurchases Capital Reta
Slide 14: Update and Outlook
Update and Outlook Continued NIM expansion and NII growth following Fed actions in December and March Still asset sensitive, but…. Net Interest Reduced upside if rates continue to rise Income / Margin Risk from any decline in rates mitigated as hedging program initiated M&T began aligning Hudson Cit
Slide 15: Long-term Shareholder Outperformance
Long-term Shareholder Outperformance 15
Slide 16: Earnings & Dividend Growth: 1983-Q1 2017
Earnings & Dividend Growth: 1983-Q1 2017 $9.00 8.08 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 2.15 $2.00 2.80 $1.00 0.75 $0.00 Dividends GAAP EPS Impact of Amortization and Merger-related expenses The $8.08 net operating EPS for 2016 and the $2.15 net operating EPS for 1Q17 are non-GAAP financial measures
Slide 17: M&T Bank Corporation…a solid investment
M&T Bank Corporation…a solid investment 18.9% Annual rate of return since 1980¹ In the top 30 of the entire universe² of U.S. based stocks traded publicly since 1980 Rank Company Name Industry Annual Return 1 Eaton Vance Corp. Financials 23.3 2 TJX Companies Inc Consumer Discretionary 23.0 3 Hasbro,
Slide 18: M&T Bank Corporation…a solid investment
M&T Bank Corporation…a solid investment Of the largest 100 banks operating in 1983, only 23 remain today. st Among the remaining, M&T ranks 1 in stock price growth Stock Closing Price at Return 3/31/2017 3/31/1983 CAGR 1 Rank Company Name Ticker ($) ($) (%) 1 M&T Bank Corporation MTB 154.73 1.34 15.
Slide 19: Appendix and GAAP Reconciliations
Appendix and GAAP Reconciliations 19
Slide 20: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Net Income 2011 2012 2013 2014 2015 2016 1Q16 4Q16 1Q17 $ in millions Net income $ 859.5 $ 1,029.5 $ 1,138.5 $ 1,066.2 $ 1,079.7 $ 1,315.1 $ 298.5 $ 330.6 $ 348.9 Intangible amortization* 37.6 37.0 28.6 20.7 16.2 25.9 7.5 5.5 5.1 Merger-related items* (12
Slide 21: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 2011 2012 2013 2014 2015 2016 1Q16 4Q16 1Q17 $ in millions Average assets $ 73,977 $ 79,983 $ 83,662 $ 92,143 $ 101,780 $ 124,340 $ 123,252 $ 125,734 $ 122,978 Goodwill (3,525) (3,525) (3,525) (3,525) (3,694) (4,593) (4,593) (4,593) (4,593)
Slide 22: M&T Peer Group
M&T Peer Group BB&T Corporation M&T Bank Corporation Citizens Financial Group, Inc. PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp SunTrust Banks, Inc. Huntington Bancshares Incorporated U.S. Bancorp KeyCorp Zions Bancorporation 22
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