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MTB - M&T Bank


Viking

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Munger, during the Q&A at BRK annual meeting suggested reading the shareholder letters of Wilmers (CEO of B&T). I have placed M&T on my watch list and started reading Q reports etc. Looks to be a very well run bank. It is not as cheap as the larger banks; likely does not carry as much risk either.

 

Here is an OpEd piece Wilmers wrote for Bloomberg (it will become clear why Charlie likes this guy): www.bloomberg.com/news/2011-06-13/small-banks-big-banks-giant-differences-robert-g-wilmers.html

 

http://ir.mandtbank.com/

 

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Munger, during the Q&A at BRK annual meeting suggested reading the shareholder letters of Wilmers (CEO of M&T).

 

Without knowing Munger's opinion, I was considering posting it in the blog. It is a well thought out letter that also caught the attention of Nocera's column ("The Good Banker"). It basically takes Charlie's point of large banks being casinos running alongside legitimate business and jumps to the logical conclusion. A conclusion that Jamie Dimon probably did not like.

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... and M&T is the bank with the best stock market performance of the last 30 years (20.1% compounded vs 21.1% Berkshire and 22.2% Leucadia), has been profitable in every quarter of the last 34 years (including this recession), Wilmers has been with the company since 1983, and you can buy it for less than 1.2x BV and 7x PTPP.

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Wilmers does it again! What a great letter to shareholders:

 

http://files.shareholder.com/downloads/MTB/1199357259x0x546897/5C592DA0-5A87-4F46-8AF6-8639E1B8963E/2011_Annual_Report.pdf

 

As relatively good a year 2011 was for M&T itself, it was far from an easy one. Indeed, it is difficult, for one who has spent more than a generation in the field, to recall a time when banking as a profession has been publicly held in such persistently low esteem. A 2011 Gallup survey found that only a quarter of the American public expressed confidence in the integrity of bankers. We have reached a point at which not only do public demonstrations specifically target the financial industry but when a leading national newspaper would opine that regulation which might lower bank profits would be “a boon to the broader economy.” What’s worse is that such a view is far from entirely illogical, even if it fails to distinguish between Wall Street banks who, in my view, were central to the financial crisis and continue to distort our economy, and Main Street banks who were often victims of the crisis and are eager, under the right conditions, to extend credit to businesses that need it.

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  • 4 months later...

M&T buying Hudson City for around $3.7 bil (valued at .08403 shares of MTB for each HCBK share).  http://finance.yahoo.com/news/m-t-buying-hudson-city-124316355.html 

 

Price will be paid 60% in cash, 40% in stock - many of the stories mistakenly call it an all stock deal since they mis-read how it's being valued vs how it's being paid.  It should be noted too that this is a pretty good deal for MTB.  HCBK has had their issues, but it's a good franchise and this will amount to a take under (HCBK BV is around $8.83 and at the current MTB stock price MTB is paying around $7.58 a share).

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M&T buying Hudson City for around $3.7 bil (valued at .08403 shares of MTB for each HCBK share).  http://finance.yahoo.com/news/m-t-buying-hudson-city-124316355.html 

 

Price will be paid 60% in cash, 40% in stock - many of the stories mistakenly call it an all stock deal since they mis-read how it's being valued vs how it's being paid.  It should be noted too that this is a pretty good deal for MTB.  HCBK has had their issues, but it's a good franchise and this will amount to a take under (HCBK BV is around $8.83 and at the current MTB stock price MTB is paying around $7.58 a share).

 

Armed robbery Mr Wilmers (good for you). One less bank in that watchlist.

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  • 2 months later...

I am thinking about adding one of the Buffet banks to  my portfolio (USB, Wells, or M&T).  However, I feel like it is easier to evaluate them in a credit crisis than in normal times (wait for NCO to stabilize, ensure there is a funding advantage, etc.).  How do you get comfortable thinking about the growth of a bank?  What are appropriate multiples to pay? 

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Warrants.

http://www.sec.gov/Archives/edgar/data/36270/000119312512496945/d446438d424b7.htm

 

MTB WS

1,218,522 warrants

expire on December 23, 2018

exercise price of $73.86 per share

will not be adjusted for any regular cash dividends less than or equal to $0.70 per share

current quarterly cash dividend $0.70 per share

minimum bid price of $23.50

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Warrants.

http://www.sec.gov/Archives/edgar/data/36270/000119312512496945/d446438d424b7.htm

 

MTB WS

1,218,522 warrants

expire on December 23, 2018

exercise price of $73.86 per share

will not be adjusted for any regular cash dividends less than or equal to $0.70 per share

current quarterly cash dividend $0.70 per share

minimum bid price of $23.50

 

Thanks Plan! 

 

Seems like another idea that can generate >3x return.  Let's see how it prices.

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Impressive man indeed.

He seemed the kind of person who would do the right thing whatever the circumstances.

Annual letters were always thoughtful and useful.

 

During the credit crunch in 2007-9, he was critical (rightly so) of the bail-out and also correctly underlined the underlying causes which others had chosen to overlook.

 

Here's a link that complements well the article mentioned by Viking at the beginning of this thread.

https://www.forbes.com/2009/04/25/robert-wilmer-banks-tarp-personal-finance-croesus.html#5517e356bcfb

 

We need more leaders like him.

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