In an effort to add impetus to the economic recovery,
M&T Bank Corporation
) has augmented its lending to small-business owners by $196
million from the last year's level. This was almost four times the
previous year's target of increasing small-business loans by $50
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Earlier, in September 2011, M&T had committed to the Small
Business Administration (SBA) that it would increase small business
lending by $50 million from 2010 levels for each of the next three
M&T's announcement related to the year-over-year hike in
lending comes on the back of the declaration made by the SBA
earlier this week. The SBA stated that thirteen of U.S. banks -
JPMorgan Chase & Co.
) and Citizens Financial Group, Inc., a fully owned subsidiary of
The Royal Bank of Scotland Group plc
) - have hiked lending to small-business by roughly $11 billion in
a year's time. Further, these banks have committed to hike small
business loans by a minimum of $20 million annually in the
following three years.
M&T is the leader in SBA lending in the Buffalo, Rochester,
Syracuse, Philadelphia, Wilmington, Baltimore and Washington, D.C.
markets. The company issued 1,227 of the SBA's primary 7(a) loans
totaling $174.5 million during fiscal year 2011, which made it the
sixth-largest SBA lender in the U.S.
Management at M&T believes that the development of
small-business would lead to creation of new jobs, which would
further add momentum to the economic recovery. Moreover, according
to the company, although it has surpassed its target of enhancing
small-business loans, it will continue working on its efforts to
collaborate with small-businesses that will help increase the pace
of economic recovery.
M&T currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. Considering the fundamentals, we also
maintain our long-term Neutral recommendation on the stock.