Earnings per common share

9 Months Ended

Sep. 30, 2011

Earnings per common share [Abstract]

Earnings per common share

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2011			2010			2011			2010
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	183,108			192,015			711,739			531,719
Less: Preferred stock dividends (a)		(14,079	)		(10,056	)		(31,761	)		(30,169	)
Amortization of preferred stock discount (a)		(1,848	)		(2,653	)		(18,132	)		(7,815	)
Net income available to common equity		167,181			179,306			661,846			493,735
Less: Income attributable to unvested stock-based compensation           awards		(2,513	)		(2,526	)		(9,905	)		(6,924	)
Net income available to common shareholders	$	164,668			176,780			651,941			486,811
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		126,478			120,010			123,855			119,705
Less: Unvested stock-based compensation awards		(1,903	)		(1,690	)		(1,850	)		(1,657	)
Weighted-average shares outstanding		124,575			118,320			122,005			118,048
Basic earnings per common share	$	1.32			1.49			5.34			4.12

(a) Including impact of not as yet declared cumulative dividends.

The computations of diluted earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2011			2010			2011			2010
	(in thousands, except per share)
Net income available to common equity	$	167,181			179,306			661,846			493,735
Less: Income attributable to unvested stock-based compensation awards		(2,510	)		(2,517	)		(9,880	)		(6,904	)
Net income available to common shareholders	$	164,671			176,789			651,966			486,831
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		126,478			120,010			123,855			119,705
Less: Unvested stock-based compensation awards		(1,903	)		(1,690	)		(1,850	)		(1,657	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock		285			835			516			718
Adjusted weighted-average shares outstanding		124,860			119,155			122,521			118,766
Diluted earnings per common share	$	1.32			1.48			5.32			4.10

GAAP defines unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities that shall be included in the computation of earnings per common share pursuant to the two-class method. During the nine-month periods ended September 30, 2011 and 2010, the Company issued stock-based compensation awards in the form of restricted stock and restricted stock units, which, in accordance with GAAP, are considered participating securities.

Stock-based compensation awards, warrants to purchase common stock of M&T and preferred stock convertible into shares of M&T stock representing approximately 11.2 million and 10.7 million common shares during the three-month periods ended September 30, 2011 and 2010, respectively, and 10.6 million and 11.1 million common shares during the nine-month periods ended September 30, 2011 and 2010, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.