M&T Bank Staying On The Fairway, But Reserve Risk Remains

I would describe M&T Bank’s (MTB) first quarter results as a very typical M&T Bank quarter. There were some items to nitpick, but on the whole it was a decent or better quarter against a challenging backdrop. With minimal capital worries and comparatively little chance of seeing losses, M&T Bank deserves to keep its spot on lists of reliable banks that can be held by more conservative investors.

Between my own analysis of the numbers and M&T Bank management’s statements, there’s still risk here of higher provisioning; I think M&T will need to add more to its reserves over the next couple of quarters. Like many of its peer banks, though, M&T shares are trading as though there has been a permanent impairment to the business, and I just don’t believe that to be the case. While investors are spoiled for choice now in terms of stock discounts to long-term fair values, M&T Bank is a solid option.

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M&T Bank Staying On The Fairway, But Reserve Risk Remains