QUOTE AND NEWS
Motley Fool  Jan 25  Comment 
M&T Bank and Hudson City Bancorp have been waiting since 2012 for government approval. Will 2015 be the year it finally comes?
Wall Street Journal  Jan 20  Comment 
M&T Bank Corp. said its earnings for the most recent period surged 25% as revenue rose and expenses fell.
Forbes  Jan 16  Comment 
Wall Street is high on M&T Bank, expecting it to report earnings that are up 8% from a year ago when it reports its fourth-quarter earnings on Tuesday, January 20, 2015. The consensus estimate is $1.94 per share, up from earnings of $1.79 per...
Motley Fool  Jan 2  Comment 
M&T Bank has a lot going for it. The investment decision comes down to valuation.
Motley Fool  Dec 31  Comment 
Tracking growth at M&T Bank.
Motley Fool  Dec 30  Comment 
M&T Bank is a strong bank, but that doesn't mean it doesn't face risks.
Motley Fool  Dec 29  Comment 
This is the special sauce that makes M&T better than the rest.
Motley Fool  Dec 21  Comment 
M&T Bank CEO Robert Wilmers is a fantastic model for investors to look for in their investments.




 

M&T Bank Corporation (NYSE: MTB) is a bank with principal offices located in Buffalo, New York and branches across New York, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, Washington D.C. and the Cayman Islands. M&T offers a variety of financial services (i.e. loans, leases, checking services, deposits) to consumers, businesses, institutional clients, government organizations and financial firms. M&T makes most of its money from its lending operations, which are focused mainly on consumers and small and medium sized businesses within New York, PA, MD, VA, and Washington D.C. Its operations are divided into the segments Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking.

Business Growth

For the fiscal year 2010, M&T earned net income of $736 million, a 94% increase from the previous year. This increase was driven primarily by a higher net interest income and lower credit costs. The bank earned $2.3 billion in net interest income, a 10% increase from 2009.[1]

Trends and Forces

Exposure to lending/credit risks

As loaning is a large part of the bank's operations, it has high exposure to credit risk, and relies on accurately predicting how well its customers will repay their loans. The corporation must maintain proactive credit risk management and constantly weigh ongoing economic factors--should they overestimate its customers' ability to repay loans, the bank's overall performance will suffer.

Exposure to market conditions

Changes in interest rates inversely affect a bank's net interest margin — the difference between the yield the bank earns on assets and the interest rate it pays for deposits and other sources of funding. Interest rate fluctuations, such as in the Federal Funds Rate (the rate at which financial institutions lend federal funds to other depository institutions) and Prime Rate (rate at which banks lend to their highest-credited consumers) affect bank products such as loans, deposits, securities, and short-term lending. As interest rates rise, banks are forced to pay higher rates on deposits and other interest bearing accounts. Meanwhile consumer demand for mortgages and other loan products diminishes as borrowing becomes more expensive. The combination of these two effects reduces both the volume of loans and the profitability of each loan. Rising interest rates also have the potential to increase a bank's defaults as holders of adjustable rate mortgages find themselves unable to meet their obligations.

Competition

2008 Financial Comparison M&T Bank (MTB) U.S. Bancorp (USB)[2] Sovereign Bancorp (SOV) Regions Financial Corporation (RF)[3] BB&T (BBT)[4] Bank of America (BAC)[5] Wells Fargo (WFC)[6]
Net Interest Income $Mil 1,939.8 7,866.00 11,112.00 6,562.40 7,207.00 85,684.0 34,898.00
Provision for Loan Losses $Mil 412.00 3,096.00 5,101.00 2,057.00 1,445.00 26,825.00 15,979.00
Net Income $Mil 555.90 2,946.00 (46.00) (5,595.80) 1,519.00 4,008.00 2,655.00
Q4 2008 Net Income $Mil 102.20 330.00 (1,421.60) (6,218.30) 305.00 (1,789.00) (2,734.00)
TARP Funding $Bil 6.6 3.6 3.5 3.1 45.0 25.0
Price to Book 0.89 1.08 0.15 0.14 0.52 0.14 1.02
Price to Book Compared to Industry Average (0.75) +0.14 +0.33 -0.60 -0.61 -0.23 -0.61 +0.27

References

  1. [MTB 2010 10-K Pg. 38]
  2. Reuters, USB
  3. Reuters, RF
  4. Reuters, BBT
  5. Reuters, BAC
  6. Reuters, WFC, "Financial Statements"
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