Earnings Per Common Share

9 Months Ended

Sep. 30, 2013

Earnings Per 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
	2013			2012			2013			2012
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	294,479			293,462		$	917,058			733,305
Less: Preferred stock dividends (a)		(13,363	)		(13,363	)		(40,088	)		(40,088	)
Amortization of preferred stock discount (a)		(2,235	)		(2,033	)		(6,575	)		(5,921	)
Net income available to common equity		278,881			278,066			870,395			687,296
Less: Income attributable to unvested stock-based compensation awards		(3,545	)		(4,181	)		(11,451	)		(10,475	)
Net income available to common shareholders	$	275,336			273,885		$	858,944			676,821
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		130,836			127,741			130,088			127,449
Less: Unvested stock-based compensation awards		(1,665	)		(1,923	)		(1,719	)		(1,939	)
Weighted-average shares outstanding		129,171			125,818			128,369			125,510
Basic earnings per common share	$	2.13			2.18		$	6.69			5.39

(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
	2013			2012			2013			2012
	(in thousands, except per share)
Net income available to common equity	$	278,881			278,066		$	870,395			687,296
Less: Income attributable to unvested stock-based compensation awards		(3,525	)		(4,170	)		(11,395	)		(10,454	)
Net income available to common shareholders	$	275,356			273,896		$	859,000			676,842
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		130,836			127,741			130,088			127,449
Less: Unvested stock-based compensation awards		(1,665	)		(1,923	)		(1,719	)		(1,939	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		1,094			474			943			426
Adjusted weighted-average shares outstanding		130,265			126,292			129,312			125,936
Diluted earnings per common share	$	2.11			2.17		$	6.64			5.37

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 and warrants to purchase common stock of M&T representing approximately 3.1 million and 9.7 million common shares during the three-month periods ended September 30, 2013 and 2012, respectively, and 4.1 million and 9.9 million common shares during the nine-month periods ended September 30, 2013 and 2012, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.