M&t Bank Corporation · NYSE:MTB
M&t Bank — Merrill Lynch Banking and Financial Services Investor Conference 2005
36 slides from M&t Bank's conference presentation, Nov 16, 2005
Slide 1: Merrill Lynch Banking and Financial Services Investor Conference
Merrill Lynch Banking and Financial Services Investor Conference November 16, 2005 Exhibit 99
Slide 2: Disclaimer
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 words
Slide 3: Agenda for today's presentation
Agenda for today's presentation Recent Financial Results Mid-Atlantic Region Update M&T's Business Model
Slide 4: M&T - A Name known in Buffalo since 1856
M&T - A Name known in Buffalo since 1856 One of the 20 Largest U.S. Banks $12.3 Billion Market Cap $54.8 Billion in assets +660 branches in 6 States and the District of Columbia Serving customers in 1.9 million households and +150,000 businesses +13,200 employees +1,500 ATM's
Slide 5: M&T - A Strong Mid-Atlantic Franchise
March 31, 1983 Total assets $2.0 billion Net operating income $3 million* M&T - A Strong Mid-Atlantic Franchise September 30, 2005 Total assets $54.8 billion Net operating income $604 million* * Note: Net operating income excludes amortization of intangibles
Slide 6: M&T Bank Corporation - Earnings Per Share Summary
M&T Bank Corporation - Earnings Per Share Summary ($ in millions, except per share data) (1) Excludes amortization expense associated with intangible assets. Intangible amortization net of tax: Sept.YTD 2004 = $36.1MM, Sept. YTD 2005 = $26.9MM.
Slide 7: M&T Bank Corporation - Nine Month Highlights
Revenue growth of 3.8% year-over-year (excluding 2005 securities impairment charge) Average balance sheet grew 5.4% NIM declined to 3.79% from 3.90% Net charge-offs of $54 million, flat from 2004 Operating expenses down 2%* M&T Bank Corporation - Nine Month Highlights Operating expenses up .2% exclu
Slide 8: Mid-Atlantic Division... Two Years Later
Mid-Atlantic Division... Two Years Later
Slide 9: Allfirst Acquisition - Assumptions
Allfirst Acquisition - Assumptions Strong earnings accretion Cost savings of $100 million Leverage partner's skill set and experience Exploit potential in attractive markets
Slide 10: Allfirst Acquisition - 2004 Performance Highlights
Allfirst Acquisition - 2004 Performance Highlights For 2004, Allfirst was about 7% accretive to MTB Net Operating EPS Consistent with due diligence, the Allfirst acquisition achieved $100 million of expense savings in 2004 Excluding the de-emphasized businesses, Allfirst total loans increased by $66
Slide 11: Mid-Atlantic Division... Leveraging M&T and Allfirst Businesses
Mid-Atlantic Division... Leveraging M&T and Allfirst Businesses M&T footprint Investment Banking Leasing International Trade Finance Asset-Based Lending Allfirst footprint Indirect Auto Auto Floor Plan M&T Mortgage Corporation Retail Brokerage & Life Insurance
Slide 12: Leveraging Allfirst and M&T Bank Business
Leveraging Allfirst and M&T Bank Business Leasing 2004 new lease volume of $237MM was greater than M&T's lease portfolio at acquisition Export Finance Recipient of the Presidents "E" Award for Export Excellence Loan Balances; April 2003 $119MM September 2005 $202MM Asset-Based Lending Standardized m
Slide 13: Leveraging Allfirst and M&T Bank Business: Investment Banking
Leveraging Allfirst and M&T Bank Business Investment Banking Unit M&A Advisory Services,Tax Exempt Financing, Loan Syndications Revenues: 2003 - $5.7MM; 2004 - $12.7MM Auto Floor Plan / Indirect Loans Floor Plan Commitments - incremental to the Mid-Atlantic Division September 2005 - $220MM Indirect
Slide 14: Leveraging Allfirst and M&T Bank Business: Trust & Investment
Leveraging Allfirst and M&T Bank Business Trust & Investment Retail Brokerage & Life Insurance - 21% growth 2004 vs. 2003 2005 planned growth 27% Residential Mortgages Opened 5 offices and hired 40 originators since April 2003 Builder Construction Opened office in early 2003 - Manassas Va. September
Slide 15: Mid-Atlantic - 2005 September YTD Highlights
Mid-Atlantic - 2005 September YTD Highlights Average loans up $700 million Average core deposits up over $400 million Revenue growth of 9% Expense decline of 2%
Slide 16: Mid-Atlantic Division... Profile as of September 2005
Core Deposits 55% Mid-Atlantic 45% Total Loans Other M&T 70% Mid-Atlantic 30% Mid-Atlantic Division... Profile as of September 2005 Total Revenue 65% Mid-Atlantic 35% Pre-tax Contribution 61% Mid-Atlantic 39% Other M&T Other M&T Other M&T
Slide 17: Mid-Atlantic - Efficiency Ratio Trend
Mid-Atlantic - Efficiency Ratio Trend
Slide 18: Middle Market Lead Bank Share: 2004 Market Rank
Total NVA dc MD CPA Up NY 0.26 0.02 0.04 0.18 0.24 0.33 Upstate NY Central PA Maryland D.C. Northern VA "Core" Footprint M&T Middle Market Lead Bank Share: 2004 Market Rank 1st 1st 2nd 7th 7th 1st (Percent of Companies That Say Each Bank is Their Most Important or Lead Bank) M&T Allfirst
Slide 19: Economic Outlook
Economic Outlook \ Mat Bank Corporation ”
Slide 20: Demographics 2004
Demographics 2004 Upstate NY MD/DC Markets Total Deposits $51.0 billion $92.7 billion Population 4.1 million 6.5 million Households 1.6 million 2.5 million Median Income $42,300 $64,900 # of Businesses 129,500 181,000 Home Starts 6,003 24,723
Slide 21: S O N D J F M A M J J A S O
S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S U.S. -0.0146 -0.0104 -0.0074 -0.0074 -0.0056 -0.0058 -0.0065 -0.0056 -0.0046 -0.0051 -0.0045 -0.0041 -0.0025 -0.0016 -0.0009 0.0012 0.002 0.0037 0.0084 0.0125 0.0139 0.0154 0.017 0.0162 0.0157 0.0178 0.0184 0.0186 0.0183 0.020
Slide 22: 2006 Forecasted Job Growth by Region
M&T Up Philly Down CPA U.S. md wash 0.016 0.008 0.011 0.013 0.015 0.018 0.022 0.025 Gtr. Washington Maryland United States Central PA Downstate NY Philadelphia Upstate NY M&T ex. NYC & Philly 2006 Forecasted Job Growth by Region Sources: Economy.com, M&T estimates
Slide 23: Investing in M&T
Investing in M&T (9) Mat Bank Corporation
Slide 24: Acquisition History and Stock Performance
Acquisition History and Stock Performance 4/1/94 Ithaca Bancorp 10/28/97 ONBANCorp 12/9/98 FNB Rochester 7/10/00 Premier National 9/26/02 Allfirst Financial 5/17/00 Keystone Financial 209% 654% Source: Yahoo Finance January 1,1994 through September 30, 2005 255% 47
Slide 25: Geographic Diversification - Market Regions
September 30, 2005 Total Loans $40.3 Billion Geographic Diversification - Market Regions December 31, 1995 Total Loans $9.6 Billion Buffalo New York City Hudson Valley Rochester Others Incl. Consumer Mortgage 24 24 4 11 37 Buffalo NYC Rochester Others Incl. Consumer Mortgage Albany PA Syracuse Maryl
Slide 26: Disciplined Operating Philosophy
Disciplined Operating Philosophy Owner/Operators Prudent Risk Managers Little appetite for interest rate risk Conservative Credit Culture/Standards Consistent underwriting standards Constant presence in markets Focus on Operating Leverage
Slide 27: What Makes M&T Unique?
What Makes M&T Unique? AIB Berkshire Hathaway-Warren Buffet M&T Management, Directors, Employees, etc. Other 0.2207 0.055 0.2115 0.5123 Managements' interests aligned with shareholders' interests Over 48% ownership between AIB, M&T insiders and Warren Buffett AIB Berkshire Hathaway- Warren Buffett O
Slide 28: Return of Capital to Shareholders
Return of Capital to Shareholders Cumulative Capital Retained, Dividends and Share Repurchases 1983 - September 30, 2005 Share Repurchases Dividends Capital Retained 2260.1 924.686 1780.997 $2.3 Billion $1.8 Billion $0.9 Billion
Slide 29: M&T Diluted EPS 1994 - 2004, GAAP & Net Operating
* Net operating EPS excludes amortization of intangible assets and merger-related costs. Note: GAAP and net operating EPS in 1998-2002 have been restated for expensing stock options. A reconciliation of GAAP to non-GAAP operating results has been included later in this presentation. M&T Diluted EPS
Slide 30: M&T Per Share Data 1983-2004
M&T Per Share Data 1983-2004 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Diluted Net Operating Earnings 0.09 0.3 0.41 0.48 0.73 0.6 0.57 0.8 0.93 1.31 1.35 1.58 1.88 2.19 2.61 3.06 3.69 4.11 4.63 5.12 5.7 6.38 6.6 Dividends 0.05
Slide 31: Shareholder Return
Shareholder Return* 20 years 10 years 5 years MTB 0.2293 0.2435 0.2262 S&P Bank Index** 0.1431 0.0794 S&P 500 0.1041 0.1091 -0.0378 M&T has outperformed the S&P 500 over each of the last 20, 10 and 5 years M&T has outperformed the S&P Bank Index over each of the last 10 and 5 years** *Data through D
Slide 32: M&T Bank Corporation... a solid investment
24.9% Annual rate of return since 1980 - - 14th best return of the entire universe of over a thousand U.S. based stocks that have traded publicly since 1980 M&T Bank Corporation... a solid investment CAGR calculated assuming reinvestment of dividends through September 30, 2005. Source: IDC & Factset
Slide 33: Merrill Lynch Banking and Financial Services Investor Conference
Merrill Lynch Banking and Financial Services Investor Conference November 16, 2005
Slide 34: Appendix
Appendix [\ Mat Bank Corporation ™
Slide 35: Reconciliation of GAAP and Non-GAAP Results of Operations
Reconciliation of GAAP and Non-GAAP Results of Operations *Excludes securities gains(losses).
Slide 36: Reconciliation of Assets & Equity to Tangible Assets & Equity
Reconciliation of Assets & Equity to Tangible Assets & Equity
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