M&T Bank Corp. said it will pay a regular quarterly dividend of 70 cents per share. The holding company for M&T Bank said that the dividend will be paid March 31 to shareholders of record as of Feb. 28. M&T, based in Buffalo, N.Y., has paid 70-cent quarterly dividends for at least a year. The company's banks had 739 offices in the mid-Atlantic region at the end of 2009.
M&T Bank Corporation operates as the holding company for M&T Bank and M&T Bank, National Association that provide commercial and retail banking services to individuals, corporations and other businesses, and institutions. It offers business loans and leases; business credit cards; deposit products, including savings deposits, time deposits, NOW accounts, and noninterest-bearing deposits; and financial services, such as cash management, payroll and direct deposit, merchant credit card, and letters of credit.
The company also provides residential real estate loans; multifamily commercial real estate loans; commercial real estate loans; residential mortgage loans; investment and trading securities; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and offshore branch deposits.
In addition, it offers foreign exchange services. Further, the company provides consumer loans, and commercial loans and leases; credit life, and accident and health reinsurance; and brokerage, investment advisory, and insurance agency services. As of December 31, 2009, it had 793 banking offices in New York State, Pennsylvania, Maryland, Delaware, New Jersey, Virginia, West Virginia, and the District of Columbia, as well as a branch in George Town, Cayman Islands. The company was founded in 1969 and is headquartered in Buffalo, New York.
Disclosure NONE.
Showing posts with label Banks. Show all posts
Showing posts with label Banks. Show all posts
Sunday, February 20, 2011
Saturday, February 19, 2011
United Security Bancshares (USBI) Slashes Quarterly Cash Dividend
United Security Bancshares, Inc. (Nasdaq: USBI) announced a quarterly cash dividend of $0.04 per share. The dividend is payable April 1, 2011, to shareholders of record on March 11, 2011. The dividend was reduced from $0.11 per share paid in the most recent quarter.
R. Terry Phillips, President and CEO, said "Over the past year, our earnings have been below historical levels due to the negative impact associated with non-performing loans, foreclosed properties and provision for loan losses, all of which were primarily caused by a continued weak economy and steadily declining real estate values. Our Board believes the reduction in the cash dividend reflects our plans to protect our capital from further adverse effects resulting from the current economic environment.”
Disclosure None
R. Terry Phillips, President and CEO, said "Over the past year, our earnings have been below historical levels due to the negative impact associated with non-performing loans, foreclosed properties and provision for loan losses, all of which were primarily caused by a continued weak economy and steadily declining real estate values. Our Board believes the reduction in the cash dividend reflects our plans to protect our capital from further adverse effects resulting from the current economic environment.”
Disclosure None
VANGUARD FINANCIALS ETF: 52-WEEK HIGH RECENTLY ECLIPSED (VFH)
Vanguard Financials ETF is currently trading at $35.08, approximately 5.3% above its 50-day moving average of $33.30. SmarTrend will be monitoring shares of VFH to see if this bullish momentum will continue.
In the last five trading sessions, the 50-day MA has climbed 0.78% while the 200-day MA has remained constant.
In the past 52 weeks, shares of Vanguard Financials ETF have traded between a low of $13.02 and a high of $35.07 and are now at $35.08, which is 169% above that low price.
The investment seeks to track the performance of a benchmark index that measures the investment return of financial stocks. The fund employs a passive management investment approach designed to track the performance of the MSCI U.S. Investable Market Financials 25/50 index. This index consists of stocks of U.S. companies within the financial sector. This sector is made up of companies involved in activities such as banking, mortgage finance, consumer finance, specialized finance, investment banking and brokerage, asset management and custody, corporate lending, insurance, financial investment, and real estate. It is non-diversified.
Disclosure I am Long VFH shares.
Friday, February 18, 2011
JPMorgan Boosts Dimon's Stock Pay 22% to $17.4 Million
The board awarded Dimon 251,415 restricted shares valued at about $12.1 million based on the Feb. 16 closing price, according to a filing yesterday with the U.S. Securities and Exchange Commission. He also received 367,377 options valued at $5.3 million, based on Bloomberg calculations.
That compares with 195,704 restricted shares valued at $7.95 million and 563,562 options valued at $6.24 million awarded last year for his work in 2009, according to disclosures by the New York-based company.
Dimon, 54, may have also received a cash bonus for 2010 as well that hasn’t yet been disclosed. He took a salary of $1 million and gave up bonuses for 2008 after receiving $49.9 million in total compensation for 2007, which included cash and restricted stock bonuses of $14.5 million each.
JPMorgan awarded Dimon’s top 15 executives more than $73 million in restricted shares, plus stock options, for their performance in 2010, according to Jan. 21 SEC filings. That compares with $64.2 million in stock granted to his top 16 executives a year ago, filings at the time show.
Blankfein, Gorman
Goldman Sachs Group Inc. gave Chairman and Chief Executive Officer Lloyd Blankfein a $12.6 million stock bonus for 2010. The New York-based firm also raised Blankfein’s salary to $2 million from $600,000. James Gorman, Morgan Stanley’s top executive since January 2010, got deferred stock and options valued at about $7.4 million for his performance last year.JPMorgan reported a record $17.4 billion profit for the year, buoyed by $7 billion in pretax reserves that were added back to earnings as credit quality and the U.S. economy improved. JPMorgan’s shares rose 1.8 percent during the year.
A majority of Dimon’s wealth is in JPMorgan stock. He and his wife owned directly or through trusts and retirement plans more than 5 million shares valued at more than $221 million as of Jan. 19, when his total holdings were last disclosed.
Jes Staley, 54, CEO of the investment bank, received the second-biggest share of JPMorgan’s compensation pool with $8 million in restricted shares and 230,770 stock options, the filings show. Chief Investment Officer Ina Drew, 54, got the next-highest payout with $7.4 million in restricted shares and 153,847 options.
Disclosure None
Boosting Your Portfolio With Preferred ETFs
Should you be putting your money into stocks or bonds? How about investing in a hybrid that contains the best of common stocks and the best of corporate bonds? This financial crossbreed exists in the form of preferred stock. What some investors call an evolution, others may call a mutation by claiming that preferred stocks combine the worst of common stocks and the worst of corporate bonds.
The Best Of:
You may be wondering why you would want to have anything to do with stocks (common or preferred) in the financial sector instead of simply buying a diversified bond fund for the yield. After all, much of the decline in the financial sector since April ’10 has been due to unfavorable economic data as well as uncertainty with how the banks will cope with the financial reform regulation, the Dodd-Frank bill. Specifically within the Dodd-Frank bill is the Durbin Amendment which Bank of America CEO, Brian Moynihan, states:
Round 1: Preferred ETFs vs. a Morningstar Analyst’s Recommended Bond Fund
I took a look at the Morningstar Analyst Research application on SeekingAlpha.com. This handy application allows you to pull up analyst research reports on over 2,000 stocks and ETFs. I pulled up the report for PFF and found that the analyst didn't seem to be a big fan of preferred stocks. The report wasn't negative, I’d say it was neutral, but the analyst recommended the Barclays Capital Long Term Bond ETF (LWC) which I put to the test.
I looked at the prices for all three ETFs around the March 2009 stock market lows through 1/14/11. LWC’s inception date was 3/10/2009 which is why that date was chosen as the starting point for this test. The results clearly favor the preferred stock ETFs:
The key difference between a preferred stock and a corporate bond is the possibility of a higher price appreciation in an advancing stock market. The preferred stock ETFs also boast a higher dividend yield. PFF currently yields 6.92%, PGX yields 7.23%, and LWC is yielding 5.56%.
Round 2: Preferred ETFs vs. Financial Common Stocks
Preferred stocks are not going to outperform their common counterpart when the common stock has a large upward price movement, but which one has the better performance in a market that is trending lower? I took a look at three major banks, Bank of America (BAC), JP Morgan & Chase CO (JPM), and Wells Fargo & Company (WFC), compared to the preferred stock ETFs. The financial sector hit its most recent high around the middle of April ’10 and was on the decline through the latter part of 2010. I pulled these results from the opening price on 4/15/10 to the closing price on 8/27/10:
The Result
The examples show that the preferred stock ETFs can outperform both common stocks and corporate bonds. The key to using preferred stocks lies in defining your thoughts about the market’s direction as well as understanding the limitations of all the financial products. The fact that preferred stocks have a low correlation to both common stocks and corporate bonds qualifies them as excellent diversification instruments.
In a modestly bullish or neutral market, preferred stocks have a good chance of outperforming bonds; Preferred stocks may also outperform their common stock counterparts due to their higher dividend yields. In an aggressive bull market, the preferred stocks will most likely underperform common stock but outperform bonds. In a bear market, preferred stocks can outperform common stocks and provide some safety due to their high yields. During this type of market, bonds may outperform preferred stocks as investors shift from the equity market into the relative safety of the bond market.
Note: The results shown in the examples represent only the price changes without accounting for any dividends.
Disclosure: I am long PFF, PGX, along with 2 or 3 closed end funds of preferred shares.
The Best Of:
- With preferred stocks you will typically receive a consistent dividend, as you would with bonds, but they are taxed like common stock dividends.
- Preferred stocks will give you a higher price appreciation than bonds if the common stock increases but the price will not increase at the same rate as the common stock.
- The dividend yield on preferred stocks is usually higher than the yield on the corporate bonds.
- Preferred stocks have the first right to dividends; Preferred shareholders will be paid before any dividends are paid out to the holders of the common stock.
- Preferred shareholders do not have any voting rights.
- In the case of a default, bond investors have the priority in claims on assets.
- Preferred stocks can depreciate in value, just like the common stock, although they will usually retain their value better than common stocks.
- Rising interest rates will have a negative impact on preferred stocks.
You may be wondering why you would want to have anything to do with stocks (common or preferred) in the financial sector instead of simply buying a diversified bond fund for the yield. After all, much of the decline in the financial sector since April ’10 has been due to unfavorable economic data as well as uncertainty with how the banks will cope with the financial reform regulation, the Dodd-Frank bill. Specifically within the Dodd-Frank bill is the Durbin Amendment which Bank of America CEO, Brian Moynihan, states:
Caution in this area is warranted but no matter what your thoughts are about the financial sector it appears that, in many circumstances, preferred stock ETFs can outperform both common stocks and corporate bonds.
The most recent, the Durbin Amendment in the interchange area, this is going to cause a significant reduction in revenue in the future and a carrying value change in our asset in the credit card business...
Round 1: Preferred ETFs vs. a Morningstar Analyst’s Recommended Bond Fund
I took a look at the Morningstar Analyst Research application on SeekingAlpha.com. This handy application allows you to pull up analyst research reports on over 2,000 stocks and ETFs. I pulled up the report for PFF and found that the analyst didn't seem to be a big fan of preferred stocks. The report wasn't negative, I’d say it was neutral, but the analyst recommended the Barclays Capital Long Term Bond ETF (LWC) which I put to the test.
I looked at the prices for all three ETFs around the March 2009 stock market lows through 1/14/11. LWC’s inception date was 3/10/2009 which is why that date was chosen as the starting point for this test. The results clearly favor the preferred stock ETFs:
| ETF | Date | Price | % Gain |
| PFF | 3/10/2009 | $15.89 | |
| 8/27/2010 | $38.98 | 145% | |
| PGX | 3/10/2009 | $6.65 | |
| 8/27/2010 | $14.08 | 111% | |
| LWC | 3/10/2009 | $30.78 | |
| 8/27/2010 | $35.39 | 14.9% |
Round 2: Preferred ETFs vs. Financial Common Stocks
Preferred stocks are not going to outperform their common counterpart when the common stock has a large upward price movement, but which one has the better performance in a market that is trending lower? I took a look at three major banks, Bank of America (BAC), JP Morgan & Chase CO (JPM), and Wells Fargo & Company (WFC), compared to the preferred stock ETFs. The financial sector hit its most recent high around the middle of April ’10 and was on the decline through the latter part of 2010. I pulled these results from the opening price on 4/15/10 to the closing price on 8/27/10:
| Stock/ETF | Date | Price | Gain/Loss |
| BAC | 4/15/2010 | $19.48 | |
| 8/27/2010 | $12.64 | (35.1%) | |
| JPM | 4/15/2010 | $47.81 | |
| 8/27/2010 | $36.60 | (23.4%) | |
| WFC | 4/15/2010 | $33.51 | |
| 8/27/2010 | $24.00 | (28.4%) | |
| PFF | 4/15/2010 | $38.89 | |
| 8/27/2010 | $39.95 | 2.7% | |
| PGX | 4/15/2010 | $13.87 | |
| 8/27/2010 | $14.36 | 3.5% |
The Result
The examples show that the preferred stock ETFs can outperform both common stocks and corporate bonds. The key to using preferred stocks lies in defining your thoughts about the market’s direction as well as understanding the limitations of all the financial products. The fact that preferred stocks have a low correlation to both common stocks and corporate bonds qualifies them as excellent diversification instruments.
In a modestly bullish or neutral market, preferred stocks have a good chance of outperforming bonds; Preferred stocks may also outperform their common stock counterparts due to their higher dividend yields. In an aggressive bull market, the preferred stocks will most likely underperform common stock but outperform bonds. In a bear market, preferred stocks can outperform common stocks and provide some safety due to their high yields. During this type of market, bonds may outperform preferred stocks as investors shift from the equity market into the relative safety of the bond market.
Note: The results shown in the examples represent only the price changes without accounting for any dividends.
Disclosure: I am long PFF, PGX, along with 2 or 3 closed end funds of preferred shares.
Monday, May 4, 2009
Emerging-Market Stocks Rally to 7-Month High on Metals, China
Emerging-market stocks, bonds and currencies rallied as higher commodity prices and the first expansion in Chinese manufacturing in nine months boosted speculation the worst of the economic crisis may be over.
The MSCI Emerging Markets Index surged 5.5 percent to a seven-month high of 699.28 at 11 a.m. in New York. Brazil’s Bovespa jumped 5 percent, also reaching its highest level since October. In Eastern Europe, Poland’s WIG20 Index and Russia’s Micex added 4 percent. Taiwan’s Taeix index advanced 5.6 percent, extending its two-day gain to 13 percent, the biggest back-to-back rally in more than 18 years.
China’s manufacturing expanded after declines in export orders moderated and investment surged because of the government’s 4 trillion yuan ($586 billion) stimulus package. Copper and zinc futures climbed by the exchange-imposed 6 percent daily limit in Shanghai, helping boost revenue for emerging economies sustained by exports.
“The worst-case scenario is now on the backburner, and the future doesn’t seem as gloomy anymore,” said Rabih Sultani, hedge fund manager at Duet Mena Ltd., part of a group managing $2 billion globally. “Liquidity is slowly returning to the market as China proved more resilient.”
Emerging-market bonds gained, with Brazil’s 11 percent notes maturing in 2040 rising the most in almost two weeks. The yield to the 2015 call date on Brazil’s bond, one of the most widely traded emerging-market securities, fell 15 basis points to 5.57 percent, according to JPMorgan Chase & Co. A basis point equals 0.01 percentage point. The bond’s price rose 0.90 cent on the dollar to 128.40 cents.
Currencies Rally
Mexico’s peso paced gains in emerging-market currencies, climbing 3.7 percent to 13.2687 per dollar. Peru’s sol rose 2.6 percent, while Chile’s peso strengthened 2.1 percent. South Africa’s rand jumped 2.7 percent.
Stocks from developing nations may “break out” into a bull market at the end of the year as falling interest rates and easing inflation make equities more attractive, Templeton Asset Management Ltd.’s Mark Mobius said yesterday in an interview.
Gerdau SA, Latin America’s biggest steelmaker, rose 7.3 percent to 16.84 reais. Usinas Siderurgicas de Minas Gerais SA, Brazil’s second-biggest steelmaker, rose 4.7 percent, while third-biggest Cia. Siderurgica Nacional SA added 5.4 percent to 42.07 reais.
In Eastern Europe, KGHM Polska Miedz SA, Poland’s only copper producer, rose 6.2 percent gain, while OAO GMK Norilsk Nickel gained 4.2 percent.
The Association of Southeast Asian Nations, together with Japan, China and South Korea, said they will start a $120 billion foreign-currency reserve pool by the end of the year to help revive investor confidence. The pledge was agreed upon at a weekend meeting in Bali, Indonesia.
Disclosure None
Tuesday, April 14, 2009
Wells Fargo Earnings Announcement To hot to Handle
Bloomberg reported Monday that Wells Fargo (WFC) may need an additional $5OB to pay back the U.S. Treasury and to cover loan losses. WFC surprised the market last week, by pre – announcing a $3B profit in the 1st quarter, but provided limited details of that pre – announcement.We should not be euphoric about this announcement, as there are some unknown details and negative headwinds that the company still faces.
With the current job losses continue to increase at a 700K per week clip, we can expect the credit losses for WFC will rise with the higher unemployment. This will reduce the company’s bottom line, and will impact their earnings going forward.
As reported by Bloomberg, WFC charge – off rate significantly increased to $3.3B in its current quarter compared to $2.8B from the last month.
Credit Suisse analyst Moshe Orenbuch stated,
I think this bank stock as a lot of work to do, this rise is premature, I do not hold the shares at this time and dont intend to buy in the near future.
With the current job losses continue to increase at a 700K per week clip, we can expect the credit losses for WFC will rise with the higher unemployment. This will reduce the company’s bottom line, and will impact their earnings going forward.
As reported by Bloomberg, WFC charge – off rate significantly increased to $3.3B in its current quarter compared to $2.8B from the last month.
Credit Suisse analyst Moshe Orenbuch stated,
“Given rising unemployment, continued home price declines and general macroeconomic headwinds, WFC’s consumer and commercial portfolios remain at risk for meaningfully higher credit losses over 2009 and 2010.”
I think this bank stock as a lot of work to do, this rise is premature, I do not hold the shares at this time and dont intend to buy in the near future.
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