Earnings per common share

3 Months Ended

Mar. 31, 2014

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 March 31
	2014			2013
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	229,017			274,113
Less: Preferred stock dividends (a)		(14,674	)		(13,363	)
Amortization of preferred stock discount (a)		—			(2,147	)
Net income available to common equity		214,343			258,603
Less: Income attributable to unvested stock-based compensation awards		(2,623	)		(3,524	)
Net income available to common shareholders	$	211,720			255,079
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		131,800			129,449
Less: Unvested stock-based compensation awards		(1,588	)		(1,780	)
Weighted-average shares outstanding		130,212			127,669
Basic earnings per common share	$	1.63			2.00

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

The computations of diluted earnings per common share follow:

	Three months ended March 31
	2014			2013
	(in thousands, except per share)
Net income available to common equity	$	214,343			258,603
Less: Income attributable to unvested stock-based compensation awards		(2,612	)		(3,507	)
Net income available to common shareholders	$	211,731			255,096
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		131,800			129,449
Less: Unvested stock-based compensation awards		(1,588	)		(1,780	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards		914			967
Adjusted weighted-average shares outstanding		131,126			128,636
Diluted earnings per common share	$	1.61			1.98

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 3.0 million and 4.7 million common shares during the three-month periods ended March 31, 2014 and 2013, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.