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Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.
3 Months Ended
Mar. 31, 2013
Text Block [Abstract]  
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

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

M&T holds a 20% minority interest in Bayview Lending Group LLC (“BLG”), a privately-held commercial mortgage company. M&T recognizes income or loss from BLG using the equity method of accounting. The carrying value of that investment was $86 million at March 31, 2013.

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 $3.7 billion and $3.8 billion at March 31, 2013 and December 31, 2012, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $7 million at March 31, 2013 and $8 million at December 31, 2012. In addition, capitalized servicing rights at each of March 31, 2013 and December 31, 2012 also included $2 million for servicing rights that were obtained from Bayview Financial related to residential mortgage loans with outstanding principal balances of $2.6 billion at March 31, 2013 and $2.7 billion at December 31, 2012. Revenues from servicing residential and small-balance commercial mortgage loans obtained from BLG and Bayview Financial were $8 million and $10 million during the quarters ended March 31, 2013 and 2012, respectively. The Company sub-services residential mortgage loans for Bayview Financial and affiliates having outstanding principal balances totaling $10.9 billion and $11.4 billion at March 31, 2013 and December 31, 2012, respectively. Revenues earned for sub-servicing those loans were $2 million for each of the three-month periods ended March 31, 2013 and 2012. In addition, at March 31, 2013 and December 31, 2012, the Company held $8 million and $11 million, respectively, of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. Finally, the Company held $237 million and $242 million of similar investment securities in its held-to-maturity portfolio at March 31, 2013 and December 31, 2012, respectively.