M&t Bank Corporation · NYSE:MTB
M&t Bank — Investor Presentation (May 2022)
34 slides from M&t Bank's investor presentation, May 18, 2022
Slide 1: Investor Update | Second Quarter 2022
Investor Update | Second Quarter 2022 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation may contain forward-looking statements regarding M&T Bank Corporation (“M&T”) within the meaning of the Private Securities Litigation Reform Act of 1995. Any statement that does not describe historical or current facts is a forward-looking statement, including statements based on c
Slide 3: M&T – A High Performing Community-Focused Bank
Top 20 U.S.-based, commercial bank holding company, with national capabilities from our suite of specialty businesses and Wilmington Trust Seasoned management team and deeply embedded culture Superior profitability and earnings and dividend growth over multiple economic cycles Decades of top quartil
Slide 4: Strong Financial Results Over the Long-Term
Source: S&P Global Market Intelligence. Notes: Historical data is through 2021 full year. EPS and dividend growth exclude firms that were not publicly traded in 2001. See Appendix for reconciliation of GAAP and non-GAAP measures. Strong Financial Results Over the Long-Term
Slide 5: Delivering Superior Financial Results Over Decades
Earnings & Dividend Growth: 1983 – 2021 14% EPS CAGR 13% Dividend CAGR Notes: CAGRs are from 1983 to full year 2021. The $14.11 operating EPS equals GAAP EPS of $13.80 plus the after-tax impact of amortization and merger-related expenses. See appendix for GAAP to non-GAAP reconciliation. Delivering
Slide 6: The M&T Story: Our Operating Principles
The M&T Story: A High Performing Community-Focused Bank… ….Our Operating Principles Our People Operating Principles Mission Outcomes Talent & Capabilities Customers & Communities Ongoing insourcing of new capabilities Local Scale Credit Discipline Operating & Capital Efficiency Long-term and deep cu
Slide 7: Prudent Stewards of Shareholders' Capital
Disciplined return criteria – lending and investments Higher return earning asset mix Moderate dividend payout One of two S&P banks to maintain dividend through the Great Financial Crisis Acquisitions that clearly present value creation History of accretive acquisitions Consistently return excess ca
Slide 8: Efficient Operator Through the Cycles
2021 Operating Efficiency Ratio Sources: S&P Global Market Intelligence and company filings Note: See appendix for calculation of operating efficiency ratio and list of peers MTB Peer Range Median Efficient Operator Through the Cycles
Slide 9: Delivering Growth Over Decades
Loans: MTB Peer Median Quartile Commercial Real Estate 5% > 2% Top Commercial & Industrial 5% > 4% 2nd Residential Real Estate 5% > 3% Top Consumer 4% > 2% 2nd Total Loans 5% > 2% Top Deposits: Noninterest-Bearing 13% > 9% Top Interest-Bearing 5% > 3% Top Total Deposits 8% > 5% Top Delivering Growth
Slide 10: Superior Credit Losses Through Multiple Economic Cycles
Superior Credit Losses Through Multiple Economic Cycles NCO % of Loans Consistent credit standards through economic cycles Emphasis on secured lending: cash flow + collateral + guarantees Customer selection, supported by local market knowledge Working with customers to achieve best long-term outcome
Slide 11: Best-In-Class Credit NCO Ratios Across All Portfolios
Best-In-Class Credit NCO Ratios Across All Portfolios Notes: Payout ratios are stated as a percent of net operating income. See appendix for non-GAAP reconciliation. Source: S&P Global Market Intelligence and FRY9C. Note: Range measures the difference between the annual maximum and minimum for M&T a
Slide 12: Local Scale in Key Markets in M&T Footprint
Hartford PF Rank Buffalo 1 Fairfield Co., CT(1) 1 Rochester 1 Baltimore 2 Hartford 2 New Haven 2 Philadelphia 7 Boston 8 Washington 11 New York 16 Buffalo Baltimore Wilmington Stamford Bridgeport Boston Contiguous Branch Footprint… People’s United transaction adds a leading market position in New En
Slide 13: Local Scale Leads to Superior Deposit Franchise
Total Cost of Deposits Noninterest-bearing deposits represented 45% of 1Q 2022 average total deposits for M&T compared to 35% peer median Noninterest Bearing Deposits / Total Deposits Local Scale Leads to Superior Deposit Franchise Sources: S&P Global Market Intelligence and FDIC
Slide 14: Higher Returns Relative to Risk
Higher Returns Relative to Risk Risk Adjusted Net Interest Margin (NII less NCO % of AEA) MTB Peer Median Peer Range Source: S&P Global Market Intelligence and company filings See appendix for calculation of risk adjust net interest margin and list of peers
Slide 15: Meeting Evolving Needs: Talent Is the Greatest Differentiator
Meeting Evolving Needs: Talent Is the Greatest Differentiator Seasoned, Skilled, and Stable Digitally forward, locally focused Enhanced team with new skill sets including design engineers and anthropologists to solve problems & deliver solutions Partnerships with Fintechs to innovate and create cust
Slide 16: Delivering Innovative Capabilities as Technology Transformation Continues
Delivering Innovative Capabilities… …as Technology Transformation Continues Our Technology transformation is centered around Three Key Dimensions {Talent} •Pivoted to mostly insourced technologists •Increasing Technology Development Program (TDP) hires •Perpetually upskilling and reskilling our tech
Slide 17: Our Focus on Customers, Communities and Innovation Pays Dividends
Our Focus on Customers, Communities and Innovation Pays Dividends Customer Focused Business Support $1.5 billion in community development loans, lines of credit, & investments 40 hours of paid volunteer time to employees yearly $279 million in charitable contributions to not-for-profits over the pas
Slide 18: A Bank for Communities & Making a Difference – Our ESG Commitment
A Bank for Communities & Making a Difference – Our ESG Commitment $638.4 million funded in renewable energy projects over the past three years $173.8 million in financing provided for renewable energy projects in 2021 18% reduction in our total electricity usage since 2017 21% reduction in Scope 1 a
Slide 19: M&T – A High Performing Community-Focused Bank
M&T – A High Performing Community-Focused Bank Top 20 U.S.-based, commercial bank holding company, with national capabilities from our suite of specialty businesses and Wilmington Trust Seasoned management team and deeply embedded culture Superior profitability and earnings and dividend growth over
Slide 20: Current Themes & Key Messages
Current Themes & Key Messages
Slide 21: Performance Through Unprecedented Environment Over Last 2 Years
(2020/2021) Performance Through Unprecedented Environment Over Last 2 Years Increased Liquidity Built Capital Announced People’s United Acquisition Low Rates Supply Chain Disruptions COVID Uncertainty Built and Maintained Reserves Low Utilization Rates Environmental Challenges Outperformance(1) M&T’
Slide 22: Environment Opening Up for "Dry Powder" Deployment
Environment Opening Up for “Dry Powder” Deployment Excess Liquidity Excess Capital People’s United Acquisition 2020 and 2021 ACL Release Below Peers Announced acquisition of like-minded banking franchise with contiguous footprint Grew capital ratios to historical highs and highest in peer group Pres
Slide 23: People's United Financial Merger Creates Long-Term Shareholder Value
People’s United Financial Merger Creates Long-Term Shareholder Value On April 1, 2022, M&T successfully completed the acquisition of People’s United Financial valued at approximately $8.4 billion Complementary community banking purpose and commitment; since announcement, core People’s United custome
Slide 24: 2022 Outlook Including Impact from People's United
2022 Outlook Including Impact from People’s United Interest-Earning Cash Securities Total Loans April 1 Combined(1) $45 Billion $21 Billion $128 Billion YE 2022 Guide Slightly under $30 billion Growth of ~$2 billion per quarter Up 3-5% (up 4-6% ex PPP/GNMA Buyouts) Note: (1) “Combined” includes lega
Slide 25: "Dry Powder" from Above Peer Excess Liquidity
“Dry Powder” from Above Peer Excess Liquidity Source: S&P Global Market Intelligence, and company filings Note: Securities includes trading assets Interest-Earning Deposits at Banks and Fed Funds Sold as a % of Total Earning Assets – As of 3/31/21 Securities as a % of Total Earning Assets – As of 3/
Slide 26: "Dry Powder" from Credit and Capital
“Dry Powder” from Credit and Capital Above average ACL build compared to CECL Day 1 levels. M&T’s ACL/loans ratio is 30 bps above the CECL Day 1 level while the peer median is below (-8 bp) at 3/31/22 Recapture of reserves in excess of CECL Day 1 levels would translate into future earnings CET1 Rati
Slide 27: Appendix
Q1 2022 | Appendix Z
Slide 28: Key Ratios
Key Ratios Notes: (1) The Efficiency Ratio and Pre-provision Net Revenue are non-GAAP financial measures. The Efficiency Ratio reflects non-interest expense (excluding amortization expense associated with intangible assets and merger-related expenses) as a percentage of fully taxable equivalent net
Slide 29: Stable Adjusted Net Interest Margin Trends
Stable Adjusted Net Interest Margin Trends Net Interest Income 0 Net Interest Margin Notes: (1) The impact to NIM from excess cash balances is calculated by comparing the sum of Federal funds sold and agreements to resell securities, interest earnings deposits at banks and trading assets at the end
Slide 30: Diversity in Mortgage Banking Revenues
Diversity in Mortgage Banking Revenues
Slide 31: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 32: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures
Slide 33: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Notes: Numbers may not foot due to rounding
Slide 34: M&T Peer Group
M&T Peer Group PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Huntington Bancshares Incorporated Zions Bancorporation, NA KeyCorp Truist Financial Corporation U.S. Bancorp M&T Bank Corporation Citizens Financial Group, Inc. First Horizon Na