Why M&T Bank is the 'best in show' for regional banks

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M&T Bank (MTB) is expected to report earnings this week, and Genter Capital Management CEO Dan Genter joins Market Domination to lay out his bull case on the company.

Genter calls M&T Bank "best in show" among regional banks, explaining, "They were way ahead of the curve with regards to commercial real estate." He notes that the bank has a much smaller commercial real estate portfolio and has continued to reduce it. Meanwhile, "they were way ahead of their peer group in increasing reserves."

"So when you look at them from a balance sheet standpoint, based upon book value right now, they're trading at about a 1.2 ratio versus even their long-term 20-year averages, about a little over 1.3. So they're very solid, they're trading at $185 right now," Genter says, forecasting it to be a "$230 stock" based on its P/E (price-to-earnings) ratio.

He also notes that the dividend also increased 4% in the second quarter, and about 2.8% in stock buybacks are being returned to investors: "So the cash on cash is very attractive at literally half of market multiple."

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This post was written by Melanie Riehl

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