M&T Bank to Redeem Series E Preferred Stock in August

M&T Bank Corp (NYSE:MTB) announced today its decision to redeem all outstanding shares of its Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E, on August 15, 2024. The redemption will affect all 350,000 shares currently in circulation, with the redemption price set at $1,000 per share plus accrued and unpaid dividends.

The Buffalo, New York-based state commercial bank, which operates under the ticker MTB on the New York Stock Exchange, specified that dividends will be calculated from May 15, 2024, up to but not including the redemption date. Following the redemption date, Series E Preferred Stock will no longer be considered outstanding, and no further dividends will be declared or accumulate. Additionally, all rights associated with the shares will expire, except for the right of shareholders to receive the redemption price.

The notice of redemption issued to shareholders outlines the terms, conditions, and procedures for the redemption. M&T Bank has cautioned that this announcement contains forward-looking statements, which are subject to various risks, uncertainties, and assumptions. These statements are not guarantees of future performance and could be affected by numerous factors that could cause actual results to differ materially from those anticipated.

M&T Bank has indicated that it does not assume any obligation to update forward-looking statements. Detailed information regarding risk factors that could impact forward-looking statements can be found in M&T Bank's Form 10-K for the year ended December 31, 2023, as well as in other public filings.

In other recent news, M&T Bank announced the departure of Senior Executive Vice President Darren J. King, effective August 10, 2024, with no successor mentioned. This development coincides with several analyst updates. Citi reaffirmed a Buy rating on M&T Bank, highlighting its strong capitalization and potential for strategic maneuvers, including mergers and acquisitions. Jefferies increased its price target for the bank to $160, emphasizing its ongoing technology investments and organic growth initiatives. Piper Sandler maintained an Overweight rating, adjusting its net interest income (NII) expectations to approximately $6.85 billion.

The bank is preparing for the Federal Reserve's annual stress tests, with analysts from Keefe, Bruyette & Woods anticipating strong performance due to adjustments in their balance sheet compositions.

M&T Bank also announced a dividend increase to $1.35 per share, indicating a stable financial position. The bank is expected to resume its share buyback program in the near future, underlining its proactive capital management and financial stability. These are recent developments that investors might find noteworthy.

InvestingPro Insights

In light of M&T Bank's (NYSE:MTB) announcement regarding the redemption of its Series E Preferred Stock, investors might find the following InvestingPro Insights particularly relevant. M&T Bank boasts a commendable track record of raising its dividend for 7 consecutive years, underlining a strong commitment to shareholder returns. Additionally, the bank has maintained dividend payments for an impressive 46 consecutive years, which could be a sign of the financial institution's stability and reliability as an income-generating investment. With a P/E ratio of 10.22, M&T Bank is trading at a low valuation relative to near-term earnings growth, as indicated by a PEG ratio of 0.66, suggesting that the stock may be undervalued given its growth prospects.

InvestingPro Tips also reveal that while 8 analysts have revised their earnings estimates downwards for the upcoming period, the bank is still expected to be profitable this year, based on its profitability over the last twelve months. For investors seeking more comprehensive analysis, there are additional tips available on InvestingPro, which could provide deeper insights into MTB's financial performance and outlook. To explore these further, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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