Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.	12 Months Ended
Dec. 31, 2012
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.	24. Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. M&T holds a 20% interest in BLG, a privately-held commercial mortgage company. M&T recognizes income or loss from BLG using the equity method of accounting. In 2011, the Company recognized a $79 million other-than-temporary impairment charge related to its investment in BLG that is included in “other costs of operations.” The carrying value of that investment was $93 million at December 31, 2012. Further information concerning the other-than-temporary impairment charge is provided in note 20. Bayview Financial Holdings, L.P. (together with its affiliates, “Bayview Financial”), a privately-held specialty mortgage finance company, is BLG’s majority investor. In addition to their common investment in BLG, the Company and Bayview Financial conduct other business activities with each other. The Company has obtained loan servicing rights for small-balance commercial mortgage loans from BLG and Bayview Financial having outstanding principal balances of $3.8 billion and $4.4 billion at December 31, 2012 and 2011, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $8 million at December 31, 2012 and $16 million at December 31, 2011. In addition, capitalized servicing rights at December 31, 2012 and 2011 also included $2 million and $5 million, respectively, for servicing rights that were obtained from Bayview Financial related to residential mortgage loans with outstanding principal balances of $2.7 billion and $3.1 billion at December 31, 2012 and 2011, respectively. Revenues from servicing residential and small-balance commercial mortgage loans obtained from BLG and Bayview Financial were $35 million, $41 million and $46 million during 2012, 2011 and 2010, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances totaling $11.4 billion and $13.1 billion at December 31, 2012 and 2011, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $9 million in 2012. Revenues earned for sub-servicing residential mortgage loans for Bayview Financial were not significant in 2011 or 2010. In addition, the Company held $11 million and $15 million at December 31, 2012 and 2011, respectively, of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. Finally, the Company held $242 million and $269 million of similar investment securities in its held-to-maturity portfolio at December 31, 2012 and 2011, respectively.

24. Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

M&T holds a 20% interest in BLG, a privately-held commercial mortgage company. M&T recognizes income or loss from BLG using the equity method of accounting. In 2011, the Company recognized a $79 million other-than-temporary impairment charge related to its investment in BLG that is included in “other costs of operations.” The carrying value of that investment was $93 million at December 31, 2012. Further information concerning the other-than-temporary impairment charge is provided in note 20.

Bayview Financial Holdings, L.P. (together with its affiliates, “Bayview Financial”), a privately-held specialty mortgage finance company, is BLG’s majority investor. In addition to their common investment in BLG, the Company and Bayview Financial conduct other business activities with each other. The Company has obtained loan servicing rights for small-balance commercial mortgage loans from BLG and Bayview Financial having outstanding principal balances of $3.8 billion and $4.4 billion at December 31, 2012 and 2011, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $8 million at December 31, 2012 and $16 million at December 31, 2011. In addition, capitalized servicing rights at December 31, 2012 and 2011 also included $2 million and $5 million, respectively, for servicing rights that were obtained from Bayview Financial related to residential mortgage loans with outstanding principal balances of $2.7 billion and $3.1 billion at December 31, 2012 and 2011, respectively. Revenues from servicing residential and small-balance commercial mortgage loans obtained from BLG and Bayview Financial were $35 million, $41 million and $46 million during 2012, 2011 and 2010, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances totaling $11.4 billion and $13.1 billion at December 31, 2012 and 2011, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $9 million in 2012. Revenues earned for sub-servicing residential mortgage loans for Bayview Financial were not significant in 2011 or 2010. In addition, the Company held $11 million and $15 million at December 31, 2012 and 2011, respectively, of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. Finally, the Company held $242 million and $269 million of similar investment securities in its held-to-maturity portfolio at December 31, 2012 and 2011, respectively.