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M&T Bank Has Promising Growth Prospects And A Cheap Valuation

Jan. 01, 2022 2:45 AM ETM&T Bank Corporation (MTB)12 Comments
Aristofanis Papadatos profile picture
Aristofanis Papadatos


  • MTB has two major growth catalysts in place.
  • MTB is offering a 3.1% dividend yield, with ample room for meaningful dividend hikes in the upcoming years.
  • MTB is trading at a price-to-earnings ratio of only 11.5.

M&T Bank

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The S&P 500 has more than doubled off its bottom in 2020 and has posted 69 new all-time highs in the last 12 months. As a result, investors now struggle to identify cheaply valued stocks. M&T Bank (

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Aristofanis Papadatos profile picture
I am a chemical engineer with a MS in Food Technology and Economics. I am also the author of 2 mathematics books ("Arithmetic calculations without a calculator" and "Word Problems") and perform almost all the calculations in my mind, without a calculator, making it easier to make immediate investing decisions among many alternatives. I invest applying fundamental and technical analysis and mainly use options as a tool for both investing and trading. I have nearly achieved my goal of early retirement, at the age of 45. In my spare time, I follow Warren Buffett's principle: "Some men read playboy. I read financial statements".

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (12)

It is surprising that the price to book ratio is not mentioned even once in the article! P/E is the wrong metric to use for valuing banks.
I am a pbct. Stock holder. Is there any advantage of holding on to this ?
I see mtb. Is $165 today. Any comments?
The take over is in May
Safer Research and Analysis profile picture
@stackre The merger with MTB calls for PBCT shareholders to receive a fixed exchange ratio of .118 shares of MTB; so PBCT stock price is trading at a slight discount to the value you would get if/when the deal closes based on MTB's current stock price. The deal has still not been approved by the Fed which leaves a little doubt as to if/when it will close. Your shares of PBCT are worth holding onto if you're bullish on the regional bank sector and you believe the deal will get Fed approval.
@Safer Research and Analysis since they announced the take over June 1. How would I know if my shares are preferred?
Would it be advantageous to buy more pbct. Or mtb. Now?
i am also a pbct shareholder who lives near bridgeport and consider this to be a raw deal. the pbct board of directors let its shareholders and employees down.
but best now that the deal goes thru as the staff at pbct is completely demoralized . i sold my preferred , but will do the common stock conversion.
( btw blumenthal mouthed off he would stop the deal, but did nothing.)
@Aristofanis Papadatos Thanks for the article on M & T Bank. I am long both PBCT and the preferred PBCTP. I bought PBCT for its conservative practices and for its increasingly high dividends. I am not thrilled with the upcoming merger. I thought the premium to PBCT common shareholders was too low, and I will miss the substantially higher dividends. But most frustrating has been the utter silence from MTB about the progress towards a final closing date on the deal.

This was announced in Feb 21 with a target of 4Q 21. In that time I have received the grand total of ONE tiny communication from MTB announcing the merger and asking me to stay tuned. I am guessing that was at least 6 months ago. 4Q has come and gone & there is some speculation out there that the closing will happen in 1Q 22, but until the shareholders hear something from the acquiring bank, it remains speculation. It's approaching a year now and still nothing from the bank, nada. I have held tight, collecting the more generous dividends from PBCT than we will get from the new bank, but am increasing frustrated with the lack of visibility here.

At this point, I am willing to remain long and let the merger happen, but MTB needs to show me that they are more shareholder friendly. Long PBCT, JPM, KEY, CMA in the sector.

BTW, can anyone tell me how the transfer of Preferred Shares are handled? It's not like they can just be converted into MTB Preferred because MTB appears not to have issued any. Thanks again.
Safer Research and Analysis profile picture
@Jus' Thinkin' This deal has been outstanding for 10 months and is at risk of not getting Fed approval given the enhanced scrutiny on bank mergers involving banks w/ assets >$100B.
As for the preferred, PBCT Pfd holders will receive shares of the new M&T Pfd stock (see p157 of S-4/A). M&T did a large Preferred offering that closed on August 17, 2021.
@Jus' Thinkin' you’re putting the blame in the wrong place. Bureaucrats in DC are putting large bank mergers on hold until there is additional public comment. Like there hasn’t been enough time already…
@Safer Research and Analysis Thanks for the heads up on the Preferred. I guess that one got by me.
Still not happy about lack of communication about the delay. Obviously the author is not aware of it; no mention here or by another SA author yesterday, Sheen Bay Research. 2 articles in 2 days and neither author mentions "enhanced scrutiny" ?? I guess I'm not alone.
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