M&T Bank’s 2016 capital pan received the approval of the Federal Reserve after submitting adjusted capital actions. The successful clearance of the Fed stress test depicts its capital strength that can withstand an economic downturn as identified in Fed’s “severely adverse” scenario.  We believe the company with a solid business model, is well poised for future growth. Additionally, the company should benefit from the acquisition of Hudson City Bancorp. However, bottom line growth continues to be limited by expanding cost base. Further, several legal woes and stricter regulatory landscape remain headwinds. Additionally, concentration in commercial real estate loans in the company’s loan portfolio poses risk.