10 Big Banks Stocks to Watch In the 'Kitchen Sink' Quarter (Update 3)

Tickers in this article: BAC BBT C CMA COF FITB I:BKX KEY MTB PNC RF STI USB VNTV WFC

Analysts expect M&T to report fourth-quarter earnings of $2.17 a share, matching the bank's third-quarter bottom line, but increasing from $1.04 a share in the fourth quarter of 2011, when the bank reported several extraordinary items, including a $79 impairment charge related to its 20% stake in Bayview Lending Group, and another impairment charge of $25 million in mortgage-backed securities.

KBW analyst Brian Klock on Dec. 13 upgraded M&T to an "Outperform" rating from "Market Perform," while raising his price target for the shares by two dollars to $111. Klock expects M&T to post fourth-quarter earnings of $2.15 a share, and estimates EPS of $8.45 in 2013, rising to $9.10 in 2014. The analyst said that "MTB is well positioned to offset NIM headwinds with expense controls, and we believe the HCBK merger will be very accretive and a catalyst for consensus estimates to move higher."

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Interested in more on M&T Bank? See TheStreet Ratings' report card for this stock .

9. Comerica


Shares of Comerica (CMA) of Dallas closed at $32.34 Monday, trading just below tangible book value, and for 12.3 times the consensus 2013 EPS estimate of $2.64. The consensus 2014 EPS estimate is $2.74.

The shares returned 20% during 2012, following a 38% decline in 2011.

Based on a quarterly payout of 15 cents, the shares have a dividend yield of 1.86%.

Comerica is scheduled to report its fourth-quarter results on Jan. 16, with the consensus among analysts being a profit of 65 cents, increasing from 61 cents in the third quarter, and 48 cents in the fourth quarter of 2011.

Brian Klock on Dec. 12 lowered his rating for Comerica to "Underperform," and lowered his price target for the shares by a dollar to $28, saying "CMA is a well-run bank, with excess capital, but in our opinion the difficult interest rate and economic environment is more challenging to the company's extremely asset sensitive business model and earnings power.

During the third quarter, Comerica's net interest income declined to $427 million, from $435 million in the second quarter, although it increased from $423 million in the third quarter of 2011. The company's net interest margin -- the difference between the average yield on loans and investments and the average cost for deposits and borrowings -- narrowed to 2.96%, from 3.10% the previous quarter, and 3.18% a year earlier.

Klock also said that "consensus estimates are too high for 2013 & 2014 and with a lack of earnings growth expected over the next two years, we believe the shares will underperform the large regional peer bank in 2013." He estimates that Comerica will report fourth-quarter earnings of 63 cents a share and that the bank will earn $2.60 a share in 2013 and in 2014.