M&T Bank (MTB) investor relations material

Business model and strategy

• Operates a community banking model across 13 states and D.C., with 27 regional presidents to drive local engagement and sales.

• Focuses on operational excellence and teaming for growth, emphasizing cross-selling and deepening customer relationships.

• Seeks to simplify and automate operations, aiming for lower costs and the ability to scale efficiently.

• Maintains a conservative approach to credit underwriting, with a history of low credit losses and strong capital generation.

• Prioritizes growth within existing markets for greater scale and density, rather than geographic expansion.

Financial performance and outlook

• CRE lending rebounded strongly since March, with over $1 billion in production and continued growth expected.

• Consumer lending, especially home equity and indirect portfolios, is recovering after a slow start, supporting net interest margin.

• Fee income is on track for another year of strong growth, driven by mortgage servicing, capital markets, and Bayview distributions.

• Expense growth is tied to revenue expansion, particularly in mortgage servicing, but remains within guided ranges.

• Credit quality remains robust, with nonaccruals at their best since 2007 and criticized assets declining for nine consecutive quarters.

Risk management and capital

• Built reserves in response to geopolitical risk scenarios, reflecting a conservative culture.

• Closely monitors leveraged lending, PE-backed companies, BDCs, and lender finance for potential risk, though exposures are limited.

• NBFI portfolio is concentrated in lower-risk areas like mortgage warehouse lending, fund banking, and REITs.

• CET1 ratio is managed within a 10%-10.5% range, with share repurchases expected to continue as long as economic conditions remain stable.

• Basel III proposals are expected to benefit capital ratios due to conservative lending and low LTVs.