M&T Bank Corp (MTB)

MTB is New York based holding company primarily operating though its subsidiaries in New York, Pennsylvania, Virginia, West Virginia, Maryland and Delaware.

Recent acquisition of Citibank’s 21 upstate New York branches has not only expanded the market share but also provided low cost deposits to the tune of $1 billion, which have been used to retire wholesale borrowings and marginally improve the deteriorating net interest margin. Cheap sources of funding has been difficult to come by with more than 60% of its deposits are in the Western and Central New York, where the manufacturing hub is in a state of recession and no signs of comeback

Around 35% of the total revenue is generated through fee income making it less dependent on spread income. The loan portfolio is diversified with a balanced mix of asset class and approximately 50% of its loan portfolio is in real estate. Home equity lines of credit and consumer loan categories remain slow and are vulnerable to the current yield environment.

Huge potential is seen in the branches of Mid Atlantic region where only 2% and 22% of the customer use its mortgage and merchant services compared to 10% and 37% for other region. Historically the attitude of the bank has been to shun of risky loans thereby forgoing growth for better credit standards. But of late there has been a dent in the same with non-performing loans creeping to 0.52% from 0.39%. However the metrics are satisfactory when compared to its peers and has adequate loss reserves to support it.

The management feels the year 2007 to have modest revenue growth, as signs of excess liquidity remain visible that would pressurize loan pricing. The fundamentals look good and its superior operating performance has helped it find a place even in Warrant Buffet’s Berkshire Hathaway’s portfolio. However there is a general feeling in the market that the stocks current price already reflects the future growth prospects. Unfavorable interest rate scenario with the stock trading at a premium makes the future of the bank uncertain and chances of beating the market looks dim.

This met a high level screen to indicate a buy and strong outperform against its peers (other tickers in its industry). My 1st version of this spreadsheet devles deep into the company's balnace sheet and recent income statements, combined with other relevant price data for the company including insider/institutional holdings, short interest, debt levels, etc.
Testing capabilities of this 1st version of my automated, valuation spreadhseet matched with my personal criteria and see how it holds up.

Yeah--Yeah I know...it's a bank. But when I wait for the very bottom, that's usually what I get. Oldpbass

M&T Bank, simply put a company that continues to make the right moves over time. With CEO Wilmers back after Sadlers retirement, the bank continues to move forward. The leadership question of who will take over as CEO is now being played out between the two exectives, either being a good candidate.

Banks are doing better but not as well as the market overall

One of Buffett's major holdings.

This bank is just BAD, as someone who lives local and despises both the company as a fairly unimportant financial and as a friend of customers (I would never use this bank myself... its just that poor at customer service,) I think that this stock is overvalued and will be beat down in the coming months.

Conservative approach to lending and limited exposure to foreclosure markets has allowed MTB to remain above the current economic frays.

M&T Bank is and always will be a Buffalo based bank and employs only here in the USA and does not outsource for the sake of cheaper labor.

With that said, because M&T Bank is a Regional local bank with strong roots to the communities for which they have a footprint in they will remain strong and viable.

These economic conditions will surely rebound. Nothing happens overnight and the customers and the employees will continue to work hard and continue to make M&T Bank one of the best regional banks in the nation.

The chart looks nasty so it must be time to SLOWLY start buying even though we arent at the bottom yet.

Just a lucky dummy on 504 but feel this one has a good BV per share and not many shorts willing to pay back $2.80 dividends.

I won't pretend to know much, but I'll share what I do know:

Comprises just under one percent of Berkshire Hathaway's holdings, Buffett is buying, P/E below 8 after turning a profit last quarter, high dividend, conservative management, expanding to the mid-Atlantic region, plenty of growth room at a $4 billion market cap. Am I missing something? Seems like a great buy to me (my money is where my mouth is).

Just look at their balance sheet and 2008 net PROFIT!!

Societal anger with banks and political capital thrown against their profiting from the bailout process will result in poor stock performance going forward. Emphasis will be on aiding the public and using the banks as creditors but avoiding "moral hazard". It is no tough sell with the public to tax and regulate aggressively in this environment.

Peter Cooper/Stuy Town Ruling is a mega-risk for multifamily in NYC and thus M&T. Plus, layoffs continue here. Toast.

DV fianance source.

The banking taint will wear off and MTB shares will rise again.

If the dividend holds this is a 6% yeild on a company in the BRK portfolio.

good numbers on this stock and a fat dividend. when the dust clears from the recession this will be a winner.

cnbc.com 20 Stocks with the Biggest Potential To Drop target price: 55.78