10. M&T Bank
Shares of M&T Bank ( MTB) of Buffalo, N.Y., closed at $102.46 Monday, trading for 2.4 tangible book value, according to Thomson Reuters Bank Insight, and for 12.5 times the consensus 2013 earnings estimate of $8.21 a share, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is $8.89. The shares returned 33% during 2012, following a 9% decline during 2011. Based on a quarterly payout of 70 cents, the shares have a divided yield of 2.73%. M&T in August announced a deal to acquire Hudson City Bancorp ( HCBK) of Paramus, N.J., for $3.7 billion in cash and stock. Hudson City had $41.9 billion in total assets as of Sept. 30, with 135 branches in New York, New Jersey, and Fairfield County in Connecticut. The merger is expected to be completed during the second quarter. Analysts expect M&T to report fourth-quarter earnings of $2.17 a share, matching the bank's third-quarter bottom line, but increasing from $1.04 a share in the fourth quarter of 2011, when the bank reported several extraordinary items, including a $79 impairment charge related to its 20% stake in Bayview Lending Group, and another impairment charge of $25 million in mortgage-backed securities. KBW analyst Brian Klock on Dec. 13 upgraded M&T to an "Outperform" rating from "Market Perform," while raising his price target for the shares by two dollars to $111. Klock expects M&T to post fourth-quarter earnings of $2.15 a share, and estimates EPS of $8.45 in 2013, rising to $9.10 in 2014. The analyst said that "MTB is well positioned to offset NIM headwinds with expense controls, and we believe the HCBK merger will be very accretive and a catalyst for consensus estimates to move higher." MTB data by YCharts
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