MTB
M & T Bank Corp
Finance/Real Estate
09/28/2020
Presented
| Date | 09/22/2020 |
| Price | $93.11 |
| Market Cap | $11.95B |
| Ent Value | $19.61B |
| P/E Ratio | 8.67x |
| Book Value | $114.54 |
| Div Yield | 4.73% |
| Shares O/S | 128.30M |
| Ave Daily Vol | 783,547 |
| Short Int | 2.06% |
Current
| Price | $185.88 |
| Market Cap | $31.04B |
| M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management and investment services. It operates through following segments: Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking, and Retail Banking. The Business Banking segment provides services to small businesses and professionals through the company's branch network, business banking centres and other delivery channels such as telephone banking, Internet banking and automated teller machines. The Commercial Banking segment offers credit products and banking services for middle-market and large commercial customers. The Commercial Real Estate segment includes credit and deposit services to its customers. The Discretionary Portfolio segment consists of investment and trading securities, residential mortgage loans and other assets, short-term and long-term borrowed funds, brokered certificates of deposit and interest rate swap agreements related thereto, and Cayman Islands branch deposits. The Residential Mortgage Banking segment comprises of residential mortgage loans and sells substantially all of those loans in the secondary market to investors. The Retail Banking segment offers services to consumers through several delivery channels which include branch offices, automated teller machines, telephone banking, and Internet banking. The company was founded on August 30, 1856 and is headquartered in Buffalo, NY. |
Publicly traded companies mentioned herein: M&T Bank Corp (MTB)
Highlights
The presenter is short shares of M&T Bank Corp (MTB) and has been looking to short banks for two main reasons: downward pressure on net interest margin (NIM) due to lower interest rates and, more uniquely, an increase in past dues and nonperforming loans because of COVID-19. He believes interest rates are going to be lower for longer and that it’s going to take time to reset as loans and investments roll-off. Additionally, payments on loans have been deferred due to the CARES Act, and lenders don’t need to provision against these loans until the terms are violated. He’s focused on the banks with the highest amount of deferrals, who are still taking interest income from these loans. He believes MTB’s earnings power in 2020 could be impaired by this pressure on NIM and their accounting treatment of the deferrals.
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