M&t Bank Corporation · NYSE:MTB
M&t Bank — Sanford C. Bernstein Strategic Decisions Conference 2012
27 slides from M&t Bank's conference presentation, May 31, 2012
Slide 1: Sanford C. Bernstein Strategic Decisions Conference 2012
Exhibit 99 Sanford C. Bernstein Strategic Decisions Conference 2012 May 31, 2012
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: M&T Bank Corporate Profile
M&T Bank Corporate Profile Top 20 US-based full-service commercial bank holding company by assets and Top 15 by market cap Founded in 1856 $79 billion total assets 761 domestic branches and more than 2,000 ATMs 15,479 employees located in New York, Maryland, Pennsylvania, Washington, D.C., Virginia,
Slide 4: Customers, Communities & Shareholders
Customers, Communities & Shareholders Most honored bank in 2011 Greenwich Excellence Awards for Small Business Banking: 12 national awards and 2 regional awards Highest number of awards among all 750 banks rated by business customers Received the highest possible Community Reinvestment Act (CRA) rat
Slide 5: Strong Presence In Our Communities
Strong Presence In Our Communities We lend in the markets where we live and work to people and enterprises whom we know #1 market share for lead bank #1 Small Business Administration relationships Lender in: among middle market clients in:(1) Baltimore Baltimore Binghamton Binghamton Buffalo Buffalo
Slide 6: Earnings Summary
Earnings Summary GAAP Earnings 2006 2007 2008 2009 2010 2011 1Q12 Net Income ($MM) 839 654 556 380 736 859 206 EPS ($ per share) 7.37 5.95 5.01 2.89 5.69 6.35 1.50 Net Operating Earnings Net Operating Income ($MM) 881 704 599 455 755 884 218 Net Operating EPS ($ per share) 7.73 6.40 5.39 3.54 5.84 6
Slide 7: Key Measures
Key Measures 2006 2007 2008 2009 2010 2011 1Q12 Net Interest Margin 3.70% 3.60% 3.38% 3.49% 3.84% 3.73% 3.69% Superior (1) pre-credit Efficiency Ratio - Tangible 51.51% 52.77% 54.35% 56.50% 53.71% 60.43% 61.09% (1) earnings Pre-tax, Pre-provision Earnings ($MM) 1,312 1,156 1,152 1,123 1,461 1,495 35
Slide 8: M&T's Philosophy: Efficiently Delivering Banking Services
M&T’s Philosophy: Efficiently Delivering Banking Services 2011 & 1Q12 results influenced by Wilmington Trust Efficiency Ratio 70% 64.33% 65% 65.02% 60.43% 61.09% 60% 56.28% 55% 52.25% 50% 45% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 1Q12 MTB Peer Median Efficiency Ratio reflects non-interest
Slide 9: Drivers of Increase in Efficiency Ratio 2006 - 2011
Drivers of Increase in Efficiency Ratio 2006 - 2011 Estimated Drivers of M&T’s Increased Efficiency Ratio: 2006 - 2011 62.0% 60.0% 2.5 – 3.0% 58.0% 1.0 – 1.5% 56.0% 2.5 – 3.0% 54.0% 60.4% 1.5 – 2.0% 52.0% 50.0% 51.5% 48.0% 46.0% MTB Efficiency Elevated Credit Higher FDIC Lower RevenueWilmington Trus
Slide 10: M&T's Community Lending – Granular Loan Portfolio
M&T’s Community Lending – Granular Loan Portfolio Key attributes: many small loans and moderate risk geography Commercial Loan Granularity At December 31, 2011 Total Commercial Loans - $40.1 Billion $0-1 $1-5 $5-30 $30-50 $50-100 $100+ Dollars in Billions Million Million Million Million Million Mill
Slide 11: Bernstein bank analysis of Relative Loss Rates
Bernstein bank analysis of Relative Loss Rates – Focused on Long Term Underwriting Trends Relative Loss Rate (1) BBT CMA COF FITB HBAN KEY MTB PNC RF SNV STI ZION BAC C JPM USB WFC 1991 39% 38% NA 60% 40% 57% 61% 95% 22% 39% 61% 82% 159% NA 230% 74% 60% 1992 40% 52% NA 62% 59% 81% 68% 99% 28% 64% 55
Slide 12: Industry Aggregate NCOs and MTB Relative Loss Rate
Industry Aggregate NCOs and MTB Relative Loss Rate Over the long-term, M&T recorded significantly less net charge-offs vs. the Industry Industry Aggregate Net Charge-off Ratio MTB Net Charge-off Ratio MTB vs. Industry - relative loss experience, after adjusting MTB loan mix to industry loan mix MTB
Slide 13: Strong Underwriting Across All Portfolios
Strong Underwriting Across All Portfolios Loss experience through the financial crisis 3Q07 – 4Q11* Comm. Real Estate Peer Median 20% 17.5% Total Loans Industry 9.6% 12% 16.0% 9.3% 5.9% 9.1% 8.7% 8.5% 15% Peer Median 9% 7.5% 11.1% 10.3% 8.6% 7.1% Industry 3.6% 9.6% 9.3% 10% 8.0% 7.8% 6.9% 6% 4.8% 4.
Slide 14: M&T Ranks Lowest for Volatility in FDIC's Core Earnings Metric
M&T Ranks Lowest for Volatility in FDIC’s Core Earnings Metric M&T has been a uniquely strong and stable performer, through good times and bad 10 Years: 10 Years: 1991 -2000 2001 -2011 Earnings Earnings Negative Core Earnings Large Cap Banks Volatility(1) Rank Volatility(1) Rank (# of Quarters) MTB
Slide 15: M&T's strength during economic crises has provided growth opportunities
M&T’s strength during economic crises has provided growth opportunities 15
Slide 16: Long-term superior profitability: Operating returns on Avg. Tangible Common Equity
M&T’s long-term superior profitability demonstrated: Operating returns on Avg. Tangible Common Equity 35% 30% 26.0% 25% 18.9% 18.0% 20% 21.1% 13.4% 15% 10% 10.9% 5% 5.5% 0% '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 -5% -10% -15% -12.0% MTB Peer Median Operating Return on Avg. Tangible Common E
Slide 17: Consistent Earnings & Dividends: 1983 – 1Q12
Consistent Earnings & Dividends: 1983 – 1Q12 M&T maintained its dividend and experienced no losses through the recent crisis Note: Data prior to 1998 does not include provisions of SFAS No. 123 and No. 148 stock option expensing. Net Operating Income and Net Operating EPS are non-GAAP financial meas
Slide 18: Outlook Consistent with Remarks on April earnings call
Outlook Consistent with Remarks on April earnings call For FY2012, expect NIM lower than FY2011’s 3.73% Expect continued pressure to core NIM 2Q12 inflows of trust deposits will also impact NIM but not NII Credit trends continue moderate improvement Expect some lumpiness in credit metrics Expect nor
Slide 19: Strong Long-term Returns to Shareholders
Strong Long-term Returns to Shareholders Highest annual stock price appreciation among top 100 banks since 1983 19.3% annual total return since 1980 Highest total return among top 50 banks since 2000 $3,418 invested in M&T in 1980 would be worth $1 million today 19
Slide 20: Sanford C. Bernstein Strategic Decisions Conference 2012
Sanford C. Bernstein Strategic Decisions Conference 2012 May 31, 2012
Slide 21: Appendix
Appendix IN Mat Bank 1
Slide 22: M&T Bank Corporation… a solid investment
M&T Bank Corporation… a solid investment Of the largest 100 Among the banks operating in remaining, M&T st 1983, only 23 remain ranks 1 in stock today price growth Stock Closing Price at Return 4/30/2012 3/31/1983 CAGR 1 Rank Company Name Ticker ($) ($) (%) 1 M&T Bank Corporation MTB 86.27 1.34 15.4
Slide 23: 19.3% Annual rate of return since 1980
M&T Bank Corporation… a solid investment 19.3% Annual rate of return since 1980* nd – 22 best return of the entire universe of over 700 U.S. based stocks that have traded publicly since 1980 Rank Company Name Industry Annual Return 1 Eaton Vance Corp. Financials 25.1 2 Limited Brands Inc. Consumer D
Slide 24: Total Returns to Shareholders
(1) Total Returns to Shareholders Largest 50 banks by market capitalization as of January 1, 2000 (1) Total Return To Shareholder from 12/31/1999 to 12/31/2011, as sourced from Barclays Capital and SNL Financial. 24
Slide 25: 2011 Peer Group - Largest Regional Banks
2011 Peer Group - Largest 12 Regional Banks BB&T Corporation M&T Bank Corporation Capital One Financial Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Synovus Financial Corp. Huntington Bancshares Incorporated SunTrust Banks, In
Slide 26: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Net Income 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 $'s in millions Net income $268.2 $353.1 $456.7 $573.9 $722.5 $782.2 $839.2 $654.3 $555.9 $379.9 $736.2 $859.5 $206.5 Intangible amortization* 56.1 99.4 32.5 47.8 46.1 34.7 38.5 4
Slide 27: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1Q12 $'s in millions Average assets $ 23,670 $ 30,842 $ 31,935 $ 45,349 $ 51,517 $ 54,135 $ 55,839 $ 58,545 $ 65,132 $ 67,472 $ 68,380 $ 73,977 $ 78,026 Goodwill (641) (1,126) (1,0
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