Earnings per common share

6 Months Ended

Jun. 30, 2012

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 June 30						Six months ended June 30
	2012			2011			2012			2011
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	233,380			322,358			439,843			528,631
Less: Preferred stock dividends (a)		(13,362	)		(7,184	)		(26,725	)		(17,682	)
Amortization of preferred stock discount (a)		(1,964	)		(13,531	)		(3,888	)		(16,284	)
Net income available to common equity		218,054			301,643			409,230			494,665
Less: Income attributable to unvested stock-based compensation awards		(3,345	)		(4,479	)		(6,283	)		(7,382	)
Net income available to common shareholders	$	214,709			297,164			402,947			487,283
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		127,445			124,035			127,301			122,522
Less: Unvested stock-based compensation awards		(1,957	)		(1,854	)		(1,947	)		(1,823	)
Weighted-average shares outstanding		125,488			122,181			125,354			120,699
Basic earnings per common share	$	1.71			2.43			3.21			4.04

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

The computations of diluted earnings per common share follow:

	Three months ended June 30						Six months ended June 30
	2012			2011			2012			2011
	(in thousands, except per share)
Net income available to common equity	$	218,054			301,643			409,230			494,665
Less: Income attributable to unvested stock-based compensation awards		(3,338	)		(4,464	)		(6,272	)		(7,357	)
Net income available to common shareholders	$	214,716			297,179			402,958			487,308
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		127,445			124,035			127,301			122,522
Less: Unvested stock-based compensation awards		(1,957	)		(1,854	)		(1,947	)		(1,823	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock		409			615			402			633
Adjusted weighted-average shares outstanding		125,897			122,796			125,756			121,332
Diluted earnings per common share	$	1.71			2.42			3.20			4.02

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 six-month periods ended June 30, 2012 and 2011, 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 9.9 million and 10.1 million common shares during the three-month periods ended June 30, 2012 and 2011, respectively, and 10.0 million and 10.3 million common shares during the six-month periods ended June 30, 2012 and 2011, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.