M&t Bank Corporation · NYSE:MTB
M&t Bank — Q4 2024 Earnings Presentation
30 slides from M&t Bank's earnings presentation, Jan 16, 2025
Slide 1: Earnings Results 4th Quarter 2024
Earnings Results 4th Quarter 2024 January 16, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cos
Slide 3: Purpose, Mission and Operating Principles
Purpose Mission To make a difference We are a bank for communities – in people’s lives. committed to improving the lives of our customers and all the communities we touch. Operating Principles Local Scale Credit Discipline Operating & Capital Efficiency 3 3
Slide 4: Making a positive impact on our communities, customers, and colleagues
Making a positive impact on our communities, customers, and colleagues Sustainability Accomplishments and Highlights Fostering Prosperity in Our Communities Investing in Our Employees – Ranked #10 SBA Lender in the country (FY2024), the 16th consecutive – 412 people participated in specialized M&T l
Slide 5: Key Awards and Accolades
Key Awards and Accolades Association for Talent Development #1 in Customer Satisfaction with Mobile Banking Apps among Regional Banks J.D. Power 2024 U.S. Banking Mobile App Satisfaction Study; among banks with $70B to $200B in deposits. Visit jdpower.com/awards for more details. 5
Slide 6: Financial Results
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Slide 7: Full Year 2024 Highlights
Full Year 2024 Highlights GAAP Notable items ($ in millions, except per share) 2024 2023 ($ in millions, except per share) 2024 2023 Revenues $9,279 $9,643 Amt EPS Amt EPS Noninterest Expense 5,359 5,379 Discrete Tax Benefits(1) $31 $0.19 $— $— Provision for Credit Losses 610 645 Pension Plan Distri
Slide 8: Full Year 2024 Highlights – Net Operating Results
Full Year 2024 Highlights Net Operating Results (Non-GAAP)(1) ($ in millions, except per share) 2024 2023 Net Operating Income $2,630 $2,789 Diluted Net Operating EPS 14.88 16.08 Efficiency Ratio 56.9% 54.9% Net Operating ROTA 1.30 1.42 Net Operating ROTCE 14.54 17.60 Tangible Book Value per Share (
Slide 9: Fourth Quarter 2024 Earnings Highlights
Fourth Quarter 2024 Earnings Highlights GAAP Notable items ($ in millions, except per share) 4Q24 3Q24 4Q23 ($ in millions, except per share) 4Q24 3Q24 4Q23 Revenues $2,385 $2,332 $2,300 Amt EPS Amt EPS Amt EPS Noninterest Expense 1,363 1,303 1,450 Non-core Securities Net $18 $0.08 $— $— $— $— Gains
Slide 10: Fourth Quarter 2024 Earnings Highlights – Net Operating Results
Fourth Quarter 2024 Earnings Highlights Net Operating Results (Non-GAAP)(1) ($ in millions, except per share) 4Q24 3Q24 4Q23 Net Operating Income $691 $731 $494 Diluted Net Operating EPS 3.92 4.08 2.81 Efficiency Ratio 56.8% 55.0% 62.1% Net Operating ROTA 1.35 1.45 .98 Net Operating ROTCE 14.66 15.4
Slide 11: Net Interest Income & Net Interest Margin
Net Interest Income & Net Interest Margin QoQ Drivers $1,735 $1,731 $1,739 $1,740 • Taxable-equivalent net interest income(1) $1,692 increased +$1 million or less than +1% QoQ – Favorable impact from repricing in the investment securities and consumer loan portfolios – Higher nonaccrual interest – B
Slide 12: Balance Sheet – Overview
Balance Sheet – Overview Change 4Q24 vs Average Balances, $ in billions, except per share 4Q24 3Q24 4Q23 3Q24 4Q23 Interest-bearing Deposits at Banks $23.6 $25.5 $30.2 -7% -22% Investment Securities 33.7 31.0 27.5 9 23 Commercial and Industrial (“C&I”) 60.7 59.8 55.4 2 10 Commercial Real Estate (“CR
Slide 13: Balance Sheet – Average Loans
Balance Sheet – Average Loans QoQ Drivers $133.8 $134.6 $134.8 $135.7 $132.8 Average loans increased +$1.0 billion or +1% $20.6 $21.2 $22.0 $22.9 $24.0 QoQ: • C&I loans increased +2% (+$925 million), driven $23.3 $23.1 $23.0 $23.0 $23.1 by lending activities to financial and insurance industry custo
Slide 14: Balance Sheet – Securities and Cash
Balance Sheet – Securities and Cash Average Investment Securities and Yield Securities and Cash - at 12/31/24 Other $33.7 Securities 2% $31.0 $29.7 HTM Interest- $28.6 Securities $27.5 bearing 26% deposits at banks 34% $ IN BILLIONS Yield up +18 bps $54.8B 3.61% 3.70% 3.88% TOTAL 3.30% 3.13% Cash AF
Slide 15: Balance Sheet – Average Deposits
Balance Sheet – Average Deposits 4Q23 1Q24 2Q24 3Q24 4Q24 Total deposit cost 2.01% 2.06% 2.06% 2.06% 1.90% QoQ Drivers Interest-bearing deposit cost 2.90% 2.93% 2.90% 2.88% 2.64% Average deposits increased +$3.1 billion or +2% QoQ: $164.7 $164.1 $163.5 $161.5 $164.6 $21.2 $20.6 $19.8 $16.0 • Average
Slide 16: Income Statement – Noninterest Income
Income Statement – Noninterest Income Change 4Q24 vs $657 $ in millions 4Q24 3Q24 4Q23 3Q24 4Q23 $606 $ IN MILLIONS $578 $580 $584 Mortgage Banking Revenues $117 $109 $112 8% 4% Service Charges on Deposits 131 132 121 — 9 Trust Income 175 170 159 3 11 Brokerage Services 30 32 26 -1 18 Non-hedge Deri
Slide 17: Income Statement – Noninterest Expenses
Income Statement – Noninterest Expenses Change 4Q24 vs $1,450 $ in millions 4Q24 3Q24 4Q23 3Q24 4Q23 $1,396 $1,363 $1,297 $1,303 (4) $1,435 Salaries & Benefits $790 $775 $724 2% 9% $1,381 $1,350 $1,284 $1,291 Equip & Occupancy 133 125 134 7 -1 $ IN MILLIONS Outside Data Proc & SW 125 123 114 1 9 Pro
Slide 18: Credit
Credit Net Charge-offs Provision for Credit Losses $160 $ IN MILLIONS $148 $ IN MILLIONS $138 $137 $225 $120 $200 0.44% 0.47% 0.42% 0.41% 0.35% $150 $140 $120 4Q23 1Q24 2Q24 3Q24 4Q24 Net Charge-offs ($) Net Charge-off Ratio (%) 4Q23 1Q24 2Q24 3Q24 4Q24 Nonaccrual Loans Allowance for Credit Losses $
Slide 19: Criticized C&I and CRE Loans
Criticized C&I and CRE Loans Criticized loans decreased -$1 billion QoQ: $12.6 $12.9 • C&I decreased -$302 million $12.1 – Driven predominantly by motor vehicle and recreational $10.9 finance dealers, services industry and health services $9.9 • CRE decreased -$691 million – Permanent CRE -$431 mill
Slide 20: Criticized C&I Loans
Criticized C&I Loans December 31, 2024 September 30, 2024 Criticized Criticized Total Criticized Criticized Total (Dollars in millions) Outstanding Accrual Nonaccrual Criticized Outstanding Accrual Nonaccrual Criticized Commercial and industrial excluding owner-occupied real estate by industry: Fina
Slide 21: Criticized CRE Loans
Criticized CRE Loans December 31, 2024 September 30, 2024 Criticized Criticized Total Criticized Criticized Total (Dollars in millions) Outstanding Accrual Nonaccrual Criticized Outstanding Accrual Nonaccrual Criticized Permanent finance by property type: Apartments/Multifamily $5,628 $935 $114 $1,0
Slide 22: Capital
Capital CET1(1) TBVPS (2) 11.67% $107.97 $109.36 11.45% 11.54% $102.42 $98.54 $99.54 11.08% 10.98% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 QoQ Drivers • CET1 capital ratio increased +13 bps to 11.67%(1) at the • Tangible common equity to tangible assets increased +24 end of 4Q24 bps to 9.0
Slide 23: Focused on Four Priorities
Focused on Four Priorities We continue our mission to simplify M&T and make investments that will improve the experience of our customers and colleagues — and help us maintain our differentiated community bank approach Build our New England and Optimize our Resources through Simplification Long Isla
Slide 24: 2025 Outlook
2025 Outlook 2025 Outlook Comments Net Interest Income $7.1 billion to • NIM in the mid 3.60s Taxable-equivalent $7.2 billion • Range dependent on deposit trends and loan growth and shape of the yield curve Income Statement $2.5 billion to Fee Income • Continued strength in trust and mortgage $2.6 b
Slide 25: Why invest in M&T?
Why invest in M&T? Purpose-Driven Successful and Sustainable Business Model that Produces Strong Shareholder Returns Purpose Driven Successful and Strong Shareholder Organization Sustainable Returns Business Model • Long term focused with deeply • Experienced and seasoned • 15-17% ROTCE(1) embedded
Slide 26: Appendix
Appendix M&&Bank Corporation| 26
Slide 27: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix GAAP to Net Operating (Non-GAAP) Reconciliation In millions, except per share 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Net income Net income $482 $531 $655 $721 $681 $2,741 $2,588 Amortization of core deposits and other intangible assets (1) 12 12 10 10 10 48 42 Net operating income $494 $543 $66
Slide 28: GAAP to Net Operating (Non-GAAP) Reconciliation
Appendix GAAP to Net Operating (Non-GAAP) Reconciliation In millions 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Other expense Other expense $1,450 $1,396 $1,297 $1,303 $1,363 $5,379 $5,359 Amortization of core deposit and other intangible assets (15) (15) (13) (12) (13) (62) (53) Noninterest operating expen
Slide 29: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix GAAP to Tangible (Non-GAAP) Reconciliation In millions 4Q23 1Q24 2Q24 3Q24 4Q24 2023 2024 Average assets Average assets $208,752 $211,478 $211,981 $209,581 $211,853 $205,397 $211,220 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) (8,473) (8,465) Core deposit and other intangible assets (1
Slide 30: GAAP to Tangible (Non-GAAP) Reconciliation
Appendix GAAP to Tangible (Non-GAAP) Reconciliation In millions 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Total assets Total assets $208,264 $215,137 $208,855 $211,785 $208,105 Goodwill (8,465) (8,465) (8,465) (8,465) (8,465) Core deposit and other intangible assets (147) (132) (119) (107)