4. M&T Bank
Shares of M&T Bank (MTB) of Buffalo, N.Y., closed at $103.44 Friday, returning 39% year-to-date, following an 8% decline last year.
M&T's shares trade for 2.4 times tangible book value, according to Thomson Reuters Bank Insight, and for 13 times the consensus 2013 EPS estimate of $8.14.
Based on a quarterly payout of 70 cents, the shares have a dividend yield of 2.71%.
M&T had $81.1 billion in total assets as of Sept. 20. The company August agreed to acquire Hudson City Bancorp (HCBK) of Paramus, N.J., for $3.7 billion in stock and cash. Hudson City had $41.9 billion in total assets as of Sept. 30, and its board of directors had been some pressure to sell, after a long-term leverage strategy of increasing wholesale borrowings and investing in long-term mortgage-backed securities backfired in the prolonged low-rate environment, leading to two costly balance sheet restructurings. The merger is expected to be completed during the second quarter of 2013.For the third quarter, M&T's pre-provision net revenue grew 38% year-over-year, to $504.3 million, with mortgage banking revenue of $106.8 million, increasing from $38.1 million in the third quarter of 2012. Meanwhile, third-quarter noninterest expenses totaled $616.0 million, declining from $ $662.0 a year earlier, with the cost savings "predominantly due to the integration of the operations obtained in the May 2011 acquisition of Wilmington Trust Corporation." M&T's tax-adjusted net interest income grew 7% year-over-year to $669.3 million in the third quarter, and the net interest margin widened to 3.75% from 3.67% a year earlier. M&T reported third-quarter net income available to common shareholders of $273.9 million, or $2.18 a share, increasing from $1.32 during the third quarter of 2011. The company's third-quarter ROA was 1.45% and its return on average common equity was 12.40%. Jefferies analyst Ken Usdin rates M&T a "Hold," with a price target of $106, saying on Oct. 24 that because Hudson City's third-quarter results showed "incremental loan yield compression and lower interest income," he was lowering his 2013 earnings estimate for M&T by a nickel to $8.40. Usdin added that "there are a ton of moving parts and as much as three full quarters left before closing, so a lot could change otherwise." MTB data by YCharts
Interested in more on M&T Bank? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV