M&t Bank Corporation · NYSE:MTB
M&t Bank — BancAnalysts Association of Boston Conference 2014
27 slides from M&t Bank's conference presentation, Nov 6, 2014
Slide 1: BancAnalysts Association of Boston Conference
BancAnalysts Association of Boston Conference November 6, 2014 Exhibit 99
Slide 2: Disclaimer
Disclaimer This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 giving M&T’s expectations or predictions of future financial or business performance or conditions. Forward- looking statements are typically identified by word
Slide 3: Today's Agenda
Today’s Agenda Company Overview, Financial Review, and Industry Changes Competitive Market Capital Final Thoughts Appendix
Slide 4: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 5: Who is M&T Bank?
Who is M&T Bank? th largest US-based commercial bank holding company M&T has grown substantially from $2 billion in assets in to $97 billion in 3Q14 15,767 employees across 696 domestic branches in New York, Maryland, Pennsylvania, Virginia, Delaware, West Virginia, and Washington DC 3.8 million cus
Slide 6: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 7: GAAP Earnings Net Operating Earnings
GAAP Earnings Net Operating Earnings* Earnings Summary 2Q14 3Q14 Net Income ($MM) 1,029 1,138 EPS ($ per share) 2.89 5.69 6.35 7.54 8.20 1.98 1.91 Net Operating Income ($MM) 1,175 Net Operating EPS ($ per share) 3.54 5.84 6.55 7.88 8.48 2.02 1.94 * Net operating earnings, see appendix
Slide 8: Earnings Summary and Balance Sheet
Earnings ($MM) Balance Sheet ($MM) – End of Period Earnings Summary (1) Excludes intangible amortization and merger related expense 2Q'14 3Q'14 Total Revenue (T/E) 3,126 3,400 3,999 4,292 4,563 1,131 1,126 Net Interest Income (T/E) 2,078 2,292 2,416 2,625 2,698 Total Fee Income 1,048 1,108 1,583 1,6
Slide 9: Key Ratios: Pre-Credit Earnings, Credit Metrics, Returns, Capital
Superior Pre-Credit Earnings Strong Credit Metrics Focused on Returns Consistent Capital Generation Balance Sheet (As At) Key Ratios (1) The Efficiency Ratio and Pre-tax, Pre-provision Earnings are non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is available in t
Slide 10: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 11: M&T's Business Model – a Historical Perspective
Note: Peer benchmarking group includes BBT, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION. Source: SNL Financial M&T’s Business Model – a Historical Perspective
Slide 12: Our Industry is Changing
Risk Management Business Environment Implications Our Industry is Changing Higher regulatory expectations and standards Best practice infrastructure Integrated risk management and capital planning Slow growth economy and persistently low rate environment Stronger competition: bank and unregulated no
Slide 13: Business Models are Evolving
Business Models are Evolving Higher levels of liquidity, capital and lower risk balance sheets Note: Peer benchmarking group includes BBT, CMA, FITB, HBAN, KEY, MTB, PNC, RF, STI, USB, WFC, and ZION. Source: SNL Financial MTB 3Q14 13.7% MTB 3Q14 9.77% MTB 3Q14 78.0% MTB 3Q14 59.67% 10.0% 13.0% 22.0%
Slide 14: Net Interest Margin
3.74% 3.23% Net Interest Margin Low Rates/HQLA Build Driving NIM Pressure (0.18%) (0.14%) (0.19%) 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% Starting NIM - 4Q12 Excess Trust Deposits Held at Federal Reserve LCR/HQLA Build Core NIM Compression & Other Factors Ending NIM - 3Q14
Slide 15: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 16: Competitive Dynamics
Competitive Dynamics M&T’s traditional focus on relationship development & consistent presence in the market key to retaining business Slow but steady improvement in economic conditions and demand for commercial credit Regional and sector differences Substantial market liquidity • Persistent pricing
Slide 17: M&T Revenue Trends
M&T Revenue Trends Fee and Net Interest Income Favorable to Peers Total fee revenue and total revenues exclude gains/losses from securities transactions (if reported) and nonrecurring items as defined by SNL. Charts indexed to 0 with 4Q12 as the base quarter. -8.0 -7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0
Slide 18: Pricing Discipline Has Meant Countercyclical Loan Growth
Pricing Discipline Has Meant Countercyclical Loan Growth Through Credit Cycles 1. Reflects end of period loan growth for each year 2. Source: Industry data was obtained from the H8 prepared by the Federal Reserve. 3. Industry Commercial loans include both “C&I and Other Loans” and “Commercial Real E
Slide 19: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 20: Capital Allocation in Response to Industry Trends
Share Repurchases 34% Capital Allocation in Response to Industry Trends 1983 - – 3Q14YTD Dividends 31% Capital Retained 35% Dividends 38% Capital Retained 62% Cumulative Capital Retained, Dividends and Share Repurchases Note: calculated using Net Operating Income – see appendix
Slide 21: Capital Actions – Past and Future
Past Today and Future Considerations Capital Actions – Past and Future Will submit 2015 CCAR Capital Plan in January Historical dividend philosophy consistent with CCAR/Stress Testing expectations Further optimize regulatory capital structure 2014 Capital Plan approved by Federal Reserve through CCA
Slide 22: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 23: Final Thoughts
Final Thoughts Strong franchise with robust capital generation Industry is evolving Investments in the franchise for the future Capital deployment
Slide 24: M&T Bank Corporation
(\ Mai Bank Corporation
Slide 25: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures $1.91 Intangible amortization* 0.33 0.37 0.36 0.34 0.29 0.30 0.29 0.22 0.05 0.04 0.03 Merger-related items* 0.03 0.08 0.02 0.31 (0.14) (0.10) 0.05 0.06 - - Diluted net operating earnings per share $7.73 $6.40 $5.39 $3.54 $5.84 $6.55 $7.88 $8.48 $2.16 $2.0
Slide 26: Reconciliation of GAAP and Non-GAAP Measures
Reconciliation of GAAP and Non-GAAP Measures Average Assets 3Q13 2Q14 3Q14 $'s in millions Average assets 55,839 $ 58,545 $ 65,132 $ 67,472 $ 68,380 $ 73,977 $ 79,983 $ 83,662 $ 84,011 $ 89,873 $ 93,245 $ Goodwill (2,908) (2,933) (3,193) (3,393) (3,525) (3,525) (3,525) (3,525) (3,525) (3,525) (3,525
Slide 27: M&T Peer Group
BB&T Corporation M&T Bank Corporation PNC Financial Services Group, Inc. Comerica Incorporated Regions Financial Corporation Fifth Third Bancorp Wells Fargo & Company SunTrust Banks, Inc. Huntington Bancshares Incorporated Zions Bancorporation KeyCorp M&T Peer Group U.S. Bancorp
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