Earnings per common share

9 Months Ended

Sep. 30, 2012

Earnings per common share

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended						Nine months ended
	September 30						September 30
	2012			2011			2012			2011
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	293,462			183,108		$	733,305			711,739
Less: Preferred stock dividends (a)		(13,363	)		(14,079	)		(40,088	)		(31,761	)
Amortization of preferred stock discount (a)		(2,033	)		(1,848	)		(5,921	)		(18,132	)
Net income available to common equity		278,066			167,181			687,296			661,846
Less: Income attributable to unvested stock-based compensation awards		(4,181	)		(2,513	)		(10,475	)		(9,905	)
Net income available to common shareholders	$	273,885			164,668			676,821			651,941
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		127,741			126,478			127,449			123,855
Less: Unvested stock-based compensation awards		(1,922	)		(1,903	)		(1,939	)		(1,850	)
Weighted-average shares outstanding		125,819			124,575			125,510			122,005
Basic earnings per common share	$	2.18			1.32		$	5.39			5.34

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

The computations of diluted earnings per common share follow:

	Three months ended						Nine months ended
	September 30						September 30
	2012			2011			2012			2011
	(in thousands, except per share)
Net income available to common equity	$	278,066			167,181		$	687,296			661,846
Less: Income attributable to unvested stock-based compensation awards		(4,170	)		(2,510	)		(10,454	)		(9,880	)
Net income available to common shareholders	$	273,896			164,671			676,842			651,966
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		127,741			126,478			127,449			123,855
Less: Unvested stock-based compensation awards		(1,923	)		(1,903	)		(1,939	)		(1,850	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock		474			285			426			516
Adjusted weighted-average shares outstanding		126,292			124,860			125,936			122,521
Diluted earnings per common share	$	2.17			1.32		$	5.37			5.32

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. The Company has 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 9.7 million and 11.2 million common shares during the three-month periods ended September 30, 2012 and 2011, respectively, and 9.9 million and 10.6 million common shares during the nine-month periods ended September 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.