M & T Bank Corp (MTB-N)

Regional banks are probably most closely tied to the US domestic economy. There is a risk we are headed to recession. Regional banks have a lot of real estate exposure, hold a lot of treasury bonds, and it was the first group in the financials to break down technically. 

Regional bank ETF is up 13% today. One of the two largest holdings in the KRE ETF. Really well run, has grown nicely. Bumping right up against the small banks cap of $50B in assets. Would benefit from reduced regulation. Very focused on domestic economy; would benefit from reshoring. Opportunity to make acquisitions in a friendlier world.

A steepening yield curve is great for banks, as net interest margins can expand. Entering a time when the lenders will be in control. Yield is 2.6%

It's a good trade. He got back into the regionals. 

They reported earlier this week, slightly beating revenues, but missing EPS a lot. But MTB is a higher-quality regional bank, because they avoided the mistakes made by peers.

They just reported a huge earnings beat with deposits up 2% last quarter instead of down. Regional banks have been a on tear lately to rebound from last spring' meltdown.

If he had to own another North American bank, it would probably be a US regional bank. This one is a very well-run bank and it didn’t get into trouble and didn’t need TARP money. Just made a really good acquisition.