M&t Bank Corporation · NYSE:MTB
M&t Bank — Merger or Acquisition (February 2021)
23 slides from M&t Bank's merger presentation, Feb 22, 2021
Slide 1: Partnership of Leading, High-Performing Superregional Banks
Partnership of Leading, High-Performing Superregional Banks February 22, 2021 Exhibit 99.2
Slide 2: Disclaimer: Cautionary Note Regarding Forward-Looking Statements
Disclaimer Cautionary Note Regarding Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
Slide 3: Compelling Combination Creates Shareholder Value
Shared conservative credit culture with credit outperformance over decades Compelling Combination Creates Shareholder Value Equipment finance business expands and diversifies M&T’s portfolio of national businesses Shared community banking purpose and commitment, with deep local presence and strong c
Slide 4: Key Transaction Terms
Key Transaction Terms Structure People's United to merge into M&T 100% stock consideration Exchange Ratio Fixed exchange ratio People’s United shareholders will receive 0.118 shares of MTB for each PBCT share Pricing Consideration represents $17.70 per share of PBCT based on February 19, 2021 close
Slide 5: People's United: A Leading New England Franchise
$535 mm 2020 Operating Earnings(1) People’s United: A Leading New England Franchise Company Overview Loan Type Branch Footprint Key Metrics $44 bn Gross Loans $52 bn Total Deposits 11 Markets(2) with Top 5 Share $63 bn Total Assets 419 Branches Source: S&P Global. Note: Financial data as of December
Slide 6: Complementary Footprints Create Leading Eastern U.S. Regional Franchise
Hartford PF Rank Buffalo 1 Fairfield Co., CT(1) 1 Rochester 1 Baltimore 2 Hartford 2 New Haven 3 Philadelphia 7 Boston 8 Washington 10 New York 15 Complementary Footprints Create Leading Eastern U.S. Regional Franchise Source: S&P Global. Demographics shown are deposit-weighted averages by MSA and c
Slide 7: Compelling Pro Forma Financial Impact
Immediately Accretive to Tangible Book Value Strong, Growing EPS Accretion(2) Attractive Returns Robust Capital Levels and Generation Meaningful Cost Synergies Compelling Pro Forma Financial Impact Transactions over $1B in deal value since January 1, 2019, excluding mergers of equals. Operating EPS
Slide 8: Combination of Efficient, Highly Profitable Partners
Combination of Efficient, Highly Profitable Partners Source: S&P Global. Peers shown are CFG, CMA, FHN, FITB, HBAN, KEY, PNC, RF, TFC, USB, and ZION. ROTCE, ROTA, and efficiency ratio metrics on net operating basis, excluding after-tax impact of intangible amortization and merger-related expenses. E
Slide 9: Highly Diversified Loan Portfolio Funded by Attractive Deposit Base
Total: $142.4bn Highly Diversified Loan Portfolio Funded by Attractive Deposit Base M&T – 4Q’20 People’s United – 4Q’20 Combined – 4Q’20 Loan Composition Deposit Composition Total: $119.8bn Total: $52.1bn Total: $171.9bn Total: $98.5bn Total: $43.9bn Noninterest-Bearing Interest-Checking, Savings, M
Slide 10: Diversified Revenue Profile With Substantial Fee Growth Opportunity
Diversified Revenue Profile With Substantial Fee Growth Opportunity M&T – 2020 People’s United – 2020 Combined – 2020 Revenue Composition Non-interest Income Composition Total: $2.1bn Total: $0.4bn Total: $2.5bn Total: $6.0bn Total: $2.0bn Total: $8.0bn Net interest income Non-interest income Source
Slide 11: Complementary Businesses with Potential Revenue Synergies
Complementary Businesses with Potential Revenue Synergies M&T Wealth & Institutional Services Wilmington Trust institutional corporate trust and wealth management platform Access to new, attractive markets Opportunity to serve People’s extensive base of commercial customers People’s United Significa
Slide 12: Consistent Credit Cultures Drive Long-Term Outperformance
Consistent Credit Cultures → Long-Term Outperformance Net Charge Offs / Total Loans Through-the-Cycle Peer Median Source: S&P Global. Peers shown are CFG, CMA, FHN, FITB, HBAN, KEY, PNC, RF, TFC, USB and ZION. Net charge-offs as a percentage of total loans.
Slide 13: Diversified, Well-Secured Commercial Real Estate Portfolios
Diversified, Well-Secured Commercial Real Estate Portfolios Investment Real Estate Portfolio Composition – 12/31/2020 Construction Permanent Hotel 55% 56% 55% Total Perm. 57% 52% 55% Wtd. Avg. LTV (Permanent) Property Type (Permanent) Hotel Office Multifamily Other Retail Permanent vs. Construction
Slide 14: Comprehensive Due Diligence Informed by Experience
Comprehensive Due Diligence Informed by Experience Deep Dive in Credit Process Reviewed nearly 2,000 loans, including the 100 largest Reviewed a sample from various industry types with a focus on pandemic-impacted sectors – examples include: Hospitality (94% coverage)Construction (77%) Senior Housin
Slide 15: Leverages Integration Experience
Leverages Integration Experience Experienced Leadership – M&T and People’s United M&T has extensive prior integration experience – 24 acquisitions in past 35 years M&T’s 140 most senior people have participated in, on average, 10 acquisitions People’s United also has extensive integration experience
Slide 16: Shared Commitment to Our Communities
Shared Commitment to Our Communities Commitment to Underserved Markets CRA: M&T has maintained outstanding rating since 1982 Community Development: M&T committed over $1.6 billion of community development loans in 2020 Supported affordable housing, community services, and economic development across
Slide 17: Appendix
Appendix M&& Bank
Slide 18: Key Assumptions
Key Assumptions Earnings Estimates M&T: Consensus estimates People’s United: Based on consensus estimates, adjusted for transitional transaction impacts in 2022(1) Synergies and One-time Merger Expenses Identified fully phased-in cost savings of ~$330 million ~30% of People’s United 2020 operating n
Slide 19: 2022E Operating Net Income Reconciliation
2022E Operating Net Income Reconciliation Source: FactSet. Excludes CDI amortization. Includes transitional transaction impact in 2022, primarily related to lesser balance sheet growth resulting from short-term focus on customer retention, remixing of lower yielding earning assets and higher cost li
Slide 20: High Quality Specialty Lines of Business
High Quality Specialty Lines of Business Total Loans Traditional equipment finance, specializing in nationwide vendor-focused equipment financing Focused on transportation, manufacturing, construction, healthcare, waste management, mining, and retail sectors Average annual charge-offs ~30 basis poin
Slide 21: Top Pro Forma Geographies
Top Pro Forma Geographies Source: S&P Global for deposits and ranking. Data as of June 30, 2020. (1)Represents Bridgeport-Stamford-Norwalk MSA.
Slide 22: M&T Reconciliation of GAAP and Non-GAAP Measures
M&T Reconciliation of GAAP and Non-GAAP Measures
Slide 23: M&T Reconciliation of GAAP and Non-GAAP Measures
M&T Reconciliation of GAAP and Non-GAAP Measures