M&T Bank (MTB) BancAnalysts Association of Boston's Annual Bank Conference summary

Financial performance and balance sheet management

• Maintained strong profitability in 2024 with best-in-class non-interest margin and return on tangible assets.

• Proactively hedged balance sheet to achieve a neutral position as rates declined, benefiting from a 60 basis point average hedge benefit for 2025.

• Reduced criticized loans by over $2 billion and non-performing assets by over $400 million, with positive credit quality trends expected to continue.

• CRE exposure as a percent of capital and allowance dropped from 260% to 148% over four years; focus remains on growing CRE except for office.

• Share repurchases resumed in Q3 2024, with $200 million buybacks in Q3 and Q4, and strong capital flexibility for future repurchases.

Strategic priorities and investments

• Four main priorities: capitalize on recent acquisitions and grow in key markets, optimize resources, improve resiliency and risk structure, and enhance risk management.

• Seven key strategic investments focus on technology, risk enhancements, client experience, and treasury management.

• Treasury management business is growing at 11% year-over-year, with further enhancements planned for 2025.

• Major investments in data centers, digital capabilities, and cyber security to support growth and regulatory requirements.

• Expense growth capped at 2.5-3% annually, with incremental dollars reallocated to strategic priorities.

Credit quality, risk, and regulatory outlook

• Intentionally maintains higher criticized loan levels to support clients, with a strong track record of low losses.

• Plans to opt into the 2025 stress test despite it being an off year, aiming to further reduce the stress capital buffer.

• Diversification efforts include reducing CRE concentration and expanding commercial and consumer lending, as well as fee businesses.

• Office CRE remains challenged due to structural tenancy issues; not planning to add to office exposure.

• Liquidity management targets $15-20 billion at the Fed for long-term stability, reflecting lessons from recent industry crises.