Barclays Maintains an 'Equalweight' on M&T Bank (MTB); 3Q11 EPS Preview - First Full Quarter of WL

Barclays maintains an 'Equalweight' on M&T Bank (NYSE: MTB) price target of $95.00.

Barclays analyst says, "We expect MTB to report 3Q11 EPS of $1.53, versus consensus of $1.62. Relative to consensus, we suspect the variance is driven by a lower net interest margin assumption. While we believe MTB originally had expected to put WL's excess liquidity to work, to help boost its near-term NIM, a lack of suitable investment opportunities, could push out this event. Additionally, while mortgage originations should increase, its recent decision to start portfolio these loans, will cause it to earn interest over the life of the loans, instead of booking an up front gain. We will also be watching its MSR given it has not historically hedged this exposure. We expect results to include continued merger charges ($60mn left) and roughly $15mn of preferred dividend expense (while it reduced TARP it did issue $500mn of 6.875% non-cumulative perpetual preferred stock)."

For more ratings news on M&T Bank click here and for the rating history of M&T Bank click here.

Shares of M&T Bank closed at $72.88 yesterday.

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