M&T Bank 2Q16 Earnings Call Notes

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M&T Bank (MTB) Q2 2016 Results

Darren J. King – Chief Financial Officer & Executive Vice President

The interest rate outlook has shifted

“While our outlook is mostly unchanged from the previous calls, one factor that has changed is the outlook for increases in the Fed funds rate. At the time of our January call, the forward rate curve was implying two actions by the Fed in calendar year 2016. There now appears to be a little prospect for even one increase this year, perhaps not even until mid-next year to late next year. But even without any Fed action, the curve has flattened with the yield on 10-year Treasuries touching an all-time low recently. Our ability to maintain a stable year-over-year margin will be impacted by that changed interest rate outlook, but that could be somewhat offset by our ability to reposition the balance sheet, particularly with respect to trust deposits and the pricing on Hudson City time deposits.”

The only time we see things that look a little crazy is when we see non-bank lenders

“I think when we do see things that look a little crazy to us, either in terms of pricing or structure, it tends to be the non-bank lenders that are in that space, and we would tend to shy away from that and keep our powder dry.”

Thoughts on appetite for acquisition

“That said – and obviously with our capital levels, we’re in a good capital position to do deals. All that said, we’re not interested in doing a deal for a deal’s sake. We’re interested in doing things that are positive for our shareholders. And to us, that means accretive to earnings and capital and we’ll be patient.”