10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-9861

M&T BANK CORPORATION

(Exact name of registrant as specified in its charter)

New York	16-0968385
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One M & T Plaza Buffalo, New York	14203
(Address of principal executive offices)	(Zip Code)

(716) 635-4000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Number of shares of the registrant’s Common Stock, $0.50 par value, outstanding as of the close of business on October 23, 2015: 133,289,778 shares.

M&T BANK CORPORATION

FORM 10-Q

For the Quarterly Period Ended September 30, 2015

Table of Contents of Information Required in Report

		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	CONSOLIDATED BALANCE SHEET - September 30, 2015 and December 31, 2014		3
	CONSOLIDATED STATEMENT OF INCOME - Three and nine months ended September 30, 2015 and 2014		4
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - Three and nine months ended September 30, 2015 and 2014		5
	CONSOLIDATED STATEMENT OF CASH FLOWS - Nine months ended September 30, 2015 and 2014		6
	CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY - Nine months ended September 30, 2015 and 2014		7
	NOTES TO FINANCIAL STATEMENTS		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		55
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		102
Item 4.	Controls and Procedures		102
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings		102
Item 1A.	Risk Factors		103
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		104
Item 3.	Defaults Upon Senior Securities		104
Item 4.	Mine Safety Disclosures		104
Item 5.	Other Information		104
Item 6.	Exhibits		105
SIGNATURES			105
EXHIBIT INDEX			106

-2-

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (Unaudited)

		September 30,			December 31,
Dollars in thousands, except per share		2015			2014
Assets	Cash and due from banks	$	1,249,704			1,289,965
	Interest-bearing deposits at banks		4,713,266			6,470,867
	Federal funds sold		—			83,392
	Trading account		340,710			308,175
	Investment securities (includes pledged securities that can be sold or repledged of $1,614,909 at September 30, 2015; $1,631,267 at December 31, 2014)
	Available for sale (cost: $10,923,234 at September 30, 2015; $8,919,324 at December 31, 2014)		11,159,509			9,156,932
	Held to maturity (fair value: $3,025,687 at September 30, 2015; $3,538,282 at December 31, 2014)		2,998,486			3,507,868
	Other (fair value: $336,544 at September 30, 2015; $328,742 at December 31, 2014)		336,544			328,742
	Total investment securities		14,494,539			12,993,542
	Loans and leases		68,766,144			66,899,369
	Unearned discount		(225,896	)		(230,413	)
	Loans and leases, net of unearned discount		68,540,248			66,668,956
	Allowance for credit losses		(933,798	)		(919,562	)
	Loans and leases, net		67,606,450			65,749,394
	Premises and equipment		581,976			612,984
	Goodwill		3,513,325			3,524,625
	Core deposit and other intangible assets		18,179			35,027
	Accrued interest and other assets		5,278,913			5,617,564
	Total assets	$	97,797,062			96,685,535
Liabilities	Noninterest-bearing deposits	$	28,189,330			26,947,880
	NOW accounts		2,459,527			2,307,815
	Savings deposits		39,298,134			41,085,803
	Time deposits		2,791,367			3,063,973
	Deposits at Cayman Islands office		206,185			176,582
	Total deposits		72,944,543			73,582,053
	Federal funds purchased and agreements to repurchase securities		173,783			192,676
	Accrued interest and other liabilities		1,582,513			1,567,951
	Long-term borrowings		10,174,289			9,006,959
	Total liabilities		84,875,128			84,349,639
Shareholders’ equity	Preferred stock, $1.00 par, 1,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: 731,500 shares at September 30, 2015 and December 31, 2014; Liquidation preference of $10,000 per share: 50,000 shares at September 30, 2015 and December 31, 2014		1,231,500			1,231,500
	Common stock, $.50 par, 250,000,000 shares authorized, 133,274,963 shares issued at September 30, 2015; 132,312,931 shares issued at December 31, 2014		66,637			66,157
	Common stock issuable, 36,462 shares at September 30, 2015; 41,330 shares at December 31, 2014		2,341			2,608
	Additional paid-in capital		3,511,182			3,409,506
	Retained earnings		8,273,747			7,807,119
	Accumulated other comprehensive income (loss), net		(163,473	)		(180,994	)
	Total shareholders’ equity		12,921,934			12,335,896
	Total liabilities and shareholders’ equity	$	97,797,062			96,685,535

-3-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

		Three months ended September 30						Nine months ended September 30
In thousands, except per share		2015			2014			2015			2014
Interest income	Loans and leases, including fees	$	672,092			647,280		$	1,981,904			1,937,531
	Investment securities
	Fully taxable		93,062			91,036			272,163			250,145
	Exempt from federal taxes		950			1,271			3,330			4,068
	Deposits at banks		3,852			3,198			10,321			7,617
	Other		70			238			749			904
	Total interest income		770,026			743,023			2,268,467			2,200,265
Interest expense	NOW accounts		360			394			1,020			1,021
	Savings deposits		10,937			11,532			31,517			34,314
	Time deposits		3,643			3,805			11,073			11,600
	Deposits at Cayman Islands office		151			161			448			550
	Short-term borrowings		32			19			102			76
	Long-term borrowings		62,076			58,053			188,764			158,098
	Total interest expense		77,199			73,964			232,924			205,659
	Net interest income		692,827			669,059			2,035,543			1,994,606
	Provision for credit losses		44,000			29,000			112,000			91,000
	Net interest income after provision for credit losses		648,827			640,059			1,923,543			1,903,606
Other income	Mortgage banking revenues		84,035			93,532			288,238			269,237
	Service charges on deposit accounts		107,259			110,071			314,860			321,637
	Trust income		113,744			128,671			356,076			379,816
	Brokerage services income		16,902			17,416			49,224			51,403
	Trading account and foreign exchange gains		8,362			6,988			20,639			21,477
	Loss on bank investment securities		—			—			(108	)		—
	Equity in earnings of Bayview Lending Group LLC		(3,721	)		(4,114	)		(11,043	)		(12,623	)
	Other revenues from operations		113,118			98,547			359,043			296,683
	Total other income		439,699			451,111			1,376,929			1,327,630
Other expense	Salaries and employee benefits		363,567			348,776			1,115,117			1,059,815
	Equipment and net occupancy		68,470			67,713			201,792			206,964
	Printing, postage and supplies		8,691			9,184			27,586			29,320
	Amortization of core deposit and other intangible assets		4,090			7,358			16,848			26,654
	FDIC assessments		11,090			13,193			32,551			43,836
	Other costs of operations		197,908			219,135			642,925			656,664
	Total other expense		653,816			665,359			2,036,819			2,023,253
	Income before taxes		434,710			425,811			1,263,653			1,207,983
	Income taxes		154,309			150,467			454,951			419,286
	Net income	$	280,401			275,344		$	808,702			788,697
	Net income available to common shareholders
	Basic	$	257,337			251,905		$	739,627			724,307
	Diluted		257,346			251,917			739,656			724,344
	Net income per common share
	Basic	$	1.94			1.92		$	5.59			5.54
	Diluted		1.93			1.91			5.56			5.50
	Cash dividends per common share	$	.70			.70		$	2.10			2.10
	Average common shares outstanding
	Basic		132,630			131,265			132,347			130,782
	Diluted		133,376			132,128			133,089			131,698

-4-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

	Three months ended September 30						Nine months ended September 30
In thousands	2015			2014			2015			2014
Net income	$	280,401			275,344		$	808,702			788,697
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities		48,332			(27,637	)		1,053			75,229
Unrealized gains (losses) on cash flow hedges		(24	)		613			823			(98	)
Foreign currency translation adjustment		(3	)		(1,817	)		(521	)		(1,504	)
Defined benefit plans liability adjustment		5,724			1,000			16,166			2,999
Total other comprehensive income (loss)		54,029			(27,841	)		17,521			76,626
Total comprehensive income	$	334,430			247,503		$	826,223			865,323

-5-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

		Nine months ended September 30
In thousands		2015			2014
Cash flows from operating activities	Net income	$	808,702			788,697
	Adjustments to reconcile net income to net cash provided by operating activities
	Provision for credit losses		112,000			91,000
	Depreciation and amortization of premises and equipment		73,916			74,516
	Amortization of capitalized servicing rights		36,730			51,572
	Amortization of core deposit and other intangible assets		16,848			26,654
	Provision for deferred income taxes		20,141			33,777
	Asset write-downs		5,775			5,114
	Net gain on sales of assets		(61,969	)		(3,771	)
	Net change in accrued interest receivable, payable		(5,484	)		9,638
	Net change in other accrued income and expense		11,200			(89,425	)
	Net change in loans originated for sale		232,974			(224,425	)
	Net change in trading account assets and liabilities		(2,993	)		11,163
	Net cash provided by operating activities		1,247,840			774,510
Cash flows from investing activities	Proceeds from sales of investment securities
	Available for sale		2,579			16
	Other		377			23,309
	Proceeds from maturities of investment securities
	Available for sale		1,343,869			686,183
	Held to maturity		519,359			337,677
	Purchases of investment securities
	Available for sale		(3,320,931	)		(5,310,246	)
	Held to maturity		(22,592	)		(15,202	)
	Other		(8,179	)		(53,264	)
	Net increase in loans and leases		(2,208,660	)		(1,420,572	)
	Net (increase) decrease in interest-bearing deposits at banks		1,757,601			(6,024,926	)
	Capital expenditures, net		(42,744	)		(50,400	)
	Net (increase) decrease in loan servicing advances		461,700			(340,750	)
	Other, net		(75,449	)		38,707
	Net cash used by investing activities		(1,593,070	)		(12,129,468	)
Cash flows from financing activities	Net increase (decrease) in deposits		(636,144	)		7,225,487
	Net decrease in short-term borrowings		(18,893	)		(95,846	)
	Proceeds from long-term borrowings		1,500,000			4,345,478
	Payments on long-term borrowings		(324,308	)		(373,642	)
	Proceeds from issuance of preferred stock		—			346,500
	Dividends paid - common		(281,149	)		(278,118	)
	Dividends paid - preferred		(58,003	)		(46,966	)
	Other, net		40,074			82,774
	Net cash provided by financing activities		221,577			11,205,667
	Net decrease in cash and cash equivalents		(123,653	)		(149,291	)
	Cash and cash equivalents at beginning of period		1,373,357			1,672,934
	Cash and cash equivalents at end of period	$	1,249,704			1,523,643
Supplemental disclosure of cash flow information	Interest received during the period	$	2,234,476			2,147,236
	Interest paid during the period		234,989			185,377
	Income taxes paid during the period		373,016			329,621
Supplemental schedule of noncash investing and financing activities	Securitization of residential mortgage loans allocated to
	Available-for-sale investment securities	$	51,481			110,971
	Capitalized servicing rights		528			1,429
	Real estate acquired in settlement of loans		35,018			35,422

-6-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

														Accumulated
														other
					Common			Additional						comprehensive
	Preferred		Common		stock			paid-in			Retained			income
In thousands, except per share	stock		stock		issuable			capital			earnings			(loss), net			Total
2014
Balance - January 1, 2014	$	881,500		65,258		2,915			3,232,014			7,188,004			(64,159	)		11,305,532
Total comprehensive income		—		—		—			—			788,697			76,626			865,323
Preferred stock cash dividends		—		—		—			—			(55,560	)		—			(55,560	)
Issuance of Series E preferred stock		350,000		—		—			(3,500	)		—			—			346,500
Exercise of 395,905 Series A stock warrants into 156,521 shares of common stock		—		78		—			(78	)		—			—			—
Stock-based compensation plans:
Compensation expense, net		—		128		—			34,117			—			—			34,245
Exercises of stock options, net		—		535		—			102,695			—			—			103,230
Stock purchase plan		—		43		—			9,545			—			—			9,588
Directors’ stock plan		—		5		—			1,266			—			—			1,271
Deferred compensation plans, net, including dividend equivalents		—		3		(325	)		335			(87	)		—			(74	)
Other		—		—		—			1,320			—			—			1,320
Common stock cash dividends - $2.10 per share		—		—		—			—			(278,059	)		—			(278,059	)
Balance - September 30, 2014	$	1,231,500		66,050		2,590			3,377,714			7,642,995			12,467			12,333,316
2015
Balance - January 1, 2015	$	1,231,500		66,157		2,608			3,409,506			7,807,119			(180,994	)		12,335,896
Total comprehensive income		—		—		—			—			808,702			17,521			826,223
Preferred stock cash dividends		—		—		—			—			(60,953	)		—			(60,953	)
Exercise of 2,315 Series A stock warrants into 904 shares of common stock		—		1		—			(1	)		—			—			—
Stock-based compensation plans:
Compensation expense, net		—		143		—			31,416			—			—			31,559
Exercises of stock options, net		—		285		—			57,133			—			—			57,418
Stock purchase plan		—		45		—			10,301			—			—			10,346
Directors’ stock plan		—		4		—			1,346			—			—			1,350
Deferred compensation plans, net, including dividend equivalents		—		2		(267	)		290			(76	)		—			(51	)
Other		—		—		—			1,191			—			—			1,191
Common stock cash dividends - $2.10 per share		—		—		—			—			(281,045	)		—			(281,045	)
Balance - September 30, 2015	$	1,231,500		66,637		2,341			3,511,182			8,273,747			(163,473	)		12,921,934

-7-

NOTES TO FINANCIAL STATEMENTS

1. Significant accounting policies

The consolidated financial statements of M&T Bank Corporation (“M&T”) and subsidiaries (“the Company”) were compiled in accordance with generally accepted accounting principles (“GAAP”) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2014 Annual Report. Additionally, effective January 1, 2015 the Company made an accounting policy election in accordance with amended accounting guidance issued by the Financial Accounting Standards Board in January 2014 to account for investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The adoption of the amended guidance did not have a significant effect on the Company’s financial position or results of operations, but did result in the restatement of the consolidated statement of income for the three months and nine months ended September 30, 2014 to remove $14 million and $39 million, respectively, of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The cumulative effect adjustment associated with adopting the amended guidance was not material as of the beginning of any period presented in these consolidated financial statements. See note 11 for information regarding the Company’s investments in qualified affordable housing projects.

In the opinion of management, all adjustments necessary for a fair presentation have been made and, except as described above, were all of a normal recurring nature.

2. Acquisitions

On August 27, 2012, M&T announced that it had entered into a definitive agreement with Hudson City Bancorp, Inc. (“Hudson City”), headquartered in Paramus, New Jersey, under which Hudson City would be acquired by M&T. Pursuant to the terms of the agreement, Hudson City shareholders will receive consideration for each common share of Hudson City in an amount valued at ..08403 of an M&T share in the form of either M&T common stock or cash, based on the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of 60% common stock of M&T and 40% cash). As of September 30, 2015, total consideration to be paid was valued at approximately $5.3 billion.

The merger has received the approval of the common shareholders of M&T and Hudson City. M&T announced on September 30, 2015 that it had received the approval of the Federal Reserve to acquire Hudson City and on October 9, 2015 M&T received approval of the proposed acquisition from the New York State Department of Financial Services. The transaction is expected to be completed on or about November 1, 2015 pending the satisfaction of customary closing conditions. At September 30, 2015, Hudson City had $35.1 billion of assets, including $19.2 billion of loans and $8.3 billion of investment securities, and $30.3 billion of liabilities, including $17.9 billion of deposits.

-8-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
September 30, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	197,764		1,630		—	$	199,394
Obligations of states and political subdivisions		6,174		170		48		6,296
Mortgage-backed securities:
Government issued or guaranteed		10,504,756		228,333		19,041		10,714,048
Privately issued		82		2		2		82
Collateralized debt obligations		28,467		22,465		1,056		49,876
Other debt securities		136,793		1,650		17,975		120,468
Equity securities		49,198		20,360		213		69,345
		10,923,234		274,610		38,335		11,159,509
Investment securities held to maturity:
Obligations of states and political subdivisions		125,251		1,395		347		126,299
Mortgage-backed securities:
Government issued or guaranteed		2,679,546		69,486		4,787		2,744,245
Privately issued		186,883		1,628		40,174		148,337
Other debt securities		6,806		—		—		6,806
		2,998,486		72,509		45,308		3,025,687
Other securities		336,544		—		—		336,544
Total	$	14,258,264		347,119		83,643	$	14,521,740

-9-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,408		544		5	$	161,947
Obligations of states and political subdivisions		8,027		224		53		8,198
Mortgage-backed securities:
Government issued or guaranteed		8,507,571		223,889		337		8,731,123
Privately issued		104		2		3		103
Collateralized debt obligations		30,073		21,276		1,033		50,316
Other debt securities		138,240		1,896		18,648		121,488
Equity securities		73,901		11,020		1,164		83,757
		8,919,324		258,851		21,243		9,156,932
Investment securities held to maturity:
Obligations of states and political subdivisions		148,961		2,551		189		151,323
Mortgage-backed securities:
Government issued or guaranteed		3,149,320		78,485		7,000		3,220,805
Privately issued		201,733		1,143		44,576		158,300
Other debt securities		7,854		—		—		7,854
		3,507,868		82,179		51,765		3,538,282
Other securities		328,742		—		—		328,742
Total	$	12,755,934		341,030		73,008	$	13,023,956

There were no significant gross realized gains or losses from the sale of investment securities for the three-month and nine-month periods ended September 30, 2015 and 2014, respectively.

At September 30, 2015, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

	Amortized cost		Estimated fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	8,282		8,330
Due after one year through five years		197,796		199,712
Due after five years through ten years		3,296		3,495
Due after ten years		159,824		164,497
		369,198		376,034
Mortgage-backed securities available for sale		10,504,838		10,714,130
	$	10,874,036		11,090,164
Debt securities held to maturity:
Due in one year or less	$	30,523		30,706
Due after one year through five years		74,511		75,150
Due after five years through ten years		20,217		20,443
Due after ten years		6,806		6,806
		132,057		133,105
Mortgage-backed securities held to maturity		2,866,429		2,892,582
	$	2,998,486		3,025,687

-10-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

A summary of investment securities that as of September 30, 2015 and December 31, 2014 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

	Less than 12 months					12 months or more
	Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
September 30, 2015
Investment securities available for sale:
Obligations of states and political subdivisions	$	516		(2	)		1,405		(46	)
Mortgage-backed securities:
Government issued or guaranteed		1,942,135		(18,925	)		5,503		(116	)
Privately issued		—		—			48		(2	)
Collateralized debt obligations		5,733		(324	)		2,155		(732	)
Other debt securities		19,335		(458	)		86,813		(17,517	)
Equity securities		—		—			212		(213	)
		1,967,719		(19,709	)		96,136		(18,626	)
Investment securities held to maturity:
Obligations of states and political subdivisions		37,336		(292	)		4,096		(55	)
Mortgage-backed securities:
Government issued or guaranteed		16,619		(129	)		240,730		(4,658	)
Privately issued		—		—			118,840		(40,174	)
		53,955		(421	)		363,666		(44,887	)
Total	$	2,021,674		(20,130	)		459,802		(63,513	)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	6,505		(5	)		—		—
Obligations of states and political subdivisions		1,785		(52	)		121		(1	)
Mortgage-backed securities:
Government issued or guaranteed		39,001		(186	)		5,555		(151	)
Privately issued		—		—			65		(3	)
Collateralized debt obligations		2,108		(696	)		5,512		(337	)
Other debt securities		14,017		(556	)		92,661		(18,092	)
Equity securities		2,138		(1,164	)		—		—
		65,554		(2,659	)		103,914		(18,584	)
Investment securities held to maturity:
Obligations of states and political subdivisions		29,886		(184	)		268		(5	)
Mortgage-backed securities:
Government issued or guaranteed		137,413		(361	)		446,780		(6,639	)
Privately issued		—		—			127,512		(44,576	)
		167,299		(545	)		574,560		(51,220	)
Total	$	232,853		(3,204	)		678,474		(69,804	)

-11-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

The Company owned 320 individual investment securities with aggregate gross unrealized losses of $84 million at September 30, 2015. Based on a review of each of the securities in the investment securities portfolio at September 30, 2015, the Company concluded that it expected to recover the amortized cost basis of its investment. As of September 30, 2015, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At September 30, 2015, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $337 million of cost method investment securities.

4. Loans and leases and the allowance for credit losses

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date and included in the consolidated balance sheet follow:

	September 30,		December 31,
	2015		2014
	(in thousands)
Outstanding principal balance	$	2,410,454		3,070,268
Carrying amount:
Commercial, financial, leasing, etc.		103,583		247,820
Commercial real estate		728,376		961,828
Residential real estate		385,885		453,360
Consumer		812,117		933,537
	$	2,029,961		2,596,545

Purchased impaired loans included in the table above totaled $149 million at September 30, 2015 and $198 million at December 31, 2014, representing less than 1% of the Company’s assets as of each date. A summary of changes in the accretable yield for acquired loans for the three months and nine months ended September 30, 2015 and 2014 follows:

	Three months ended September 30
	2015						2014
	Purchased			Other			Purchased			Other
	impaired			acquired			impaired			acquired
	(in thousands)
Balance at beginning of period	$	77,624			344,989		$	26,082			450,970
Interest income		(5,865	)		(37,396	)		(4,149	)		(39,019	)
Reclassifications from nonaccretable balance		47			769			129			9,673
Other (a)		—			4,697			—			1,870
Balance at end of period	$	71,806			313,059		$	22,062			423,494
	Nine months ended September 30
	2015						2014
	Purchased			Other			Purchased			Other
	impaired			acquired			impaired			acquired
	(in thousands)
Balance at beginning of period	$	76,518			397,379		$	37,230			538,633
Interest income		(16,843	)		(118,697	)		(15,583	)		(135,105	)
Reclassifications from nonaccretable balance		12,131			27,792			415			10,448
Other (a)		—			6,585			—			9,518
Balance at end of period	$	71,806			313,059		$	22,062			423,494

(a) Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

-12-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

A summary of current, past due and nonaccrual loans as of September 30, 2015 and December 31, 2014 follows:

			30-89 Days past due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
	Current				Non- acquired		Acquired (a)
	(in thousands)
September 30, 2015
Commercial, financial, leasing, etc.	$	19,965,307		29,451		5,882		3,477		4,645		224,415	$	20,233,177
Real estate:
Commercial		23,184,906		105,140		21,629		17,906		45,523		176,491		23,551,595
Residential builder and developer		1,479,659		15,951		—		7,488		65,102		46,022		1,614,222
Other commercial construction		3,493,349		28,433		1,373		1,769		17,484		12,312		3,554,720
Residential		7,323,813		206,044		194,280		16,295		14,392		153,354		7,908,178
Residential Alt-A		226,871		11,662		—		—		—		64,351		302,884
Consumer:
Home equity lines and loans		5,710,632		38,506		—		15,454		2,275		78,126		5,844,993
Automobile		2,319,556		36,867		—		53		—		13,892		2,370,368
Other		3,084,080		31,210		8,301		18,385		—		18,135		3,160,111
Total	$	66,788,173		503,264		231,465		80,827		149,421		787,098	$	68,540,248
	Current		30-89 Days past due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
					Non- acquired		Acquired (a)
	(in thousands)
December 31, 2014
Commercial, financial, leasing, etc.	$	19,228,265		37,246		1,805		6,231		10,300		177,445	$	19,461,292
Real estate:
Commercial		22,208,491		118,704		22,170		14,662		51,312		141,600		22,556,939
Residential builder and developer		1,273,607		11,827		492		9,350		98,347		71,517		1,465,140
Other commercial construction		3,484,932		17,678		—		—		17,181		25,699		3,545,490
Residential		7,640,368		226,932		216,489		35,726		18,223		180,275		8,318,013
Residential Alt-A		249,810		11,774		—		—		—		77,704		339,288
Consumer:
Home equity lines and loans		5,859,378		42,945		—		27,896		2,374		89,291		6,021,884
Automobile		1,931,138		30,500		—		133		—		17,578		1,979,349
Other		2,909,791		33,295		4,064		16,369		—		18,042		2,981,561
Total	$	64,785,780		530,901		245,020		110,367		197,737		799,151	$	66,668,956

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and were recorded at fair value.

-13-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

One-to-four family residential mortgage loans held for sale were $422 million and $435 million at September 30, 2015 and December 31, 2014, respectively. Commercial mortgage loans held for sale were $71 million at September 30, 2015 and $308 million at December 31, 2014.

Changes in the allowance for credit losses for the three months ended September 30, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	286,750			311,294			60,294			194,238			77,411		$	929,987
Provision for credit losses		21,507			1,879			(3,155	)		24,448			(679	)		44,000
Net charge-offs
Charge-offs		(26,912	)		(2,203	)		(3,268	)		(20,758	)		—			(53,141	)
Recoveries		5,322			2,119			1,125			4,386			—			12,952
Net charge-offs		(21,590	)		(84	)		(2,143	)		(16,372	)		—			(40,189	)
Ending balance	$	286,667			313,089			54,996			202,314			76,732		$	933,798

Changes in the allowance for credit losses for the three months ended September 30, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666
Provision for credit losses		2,373			8,046			(3,187	)		21,815			(47	)		29,000
Net charge-offs
Charge-offs		(15,921	)		(1,666	)		(4,193	)		(21,312	)		—			(43,092	)
Recoveries		7,849			1,267			2,498			3,445			—			15,059
Net charge-offs		(8,072	)		(399	)		(1,695	)		(17,867	)		—			(28,033	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839		$	918,633

Changes in the allowance for credit losses for the nine months ended September 30, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	288,038			307,927			61,910			186,033			75,654	$	919,562
Provision for credit losses		32,686			13,769			(571	)		65,038			1,078		112,000
Net charge-offs
Charge-offs		(46,990	)		(12,352	)		(9,695	)		(64,542	)		—		(133,579	)
Recoveries		12,933			3,745			3,352			15,785			—		35,815
Net charge-offs		(34,057	)		(8,607	)		(6,343	)		(48,757	)		—		(97,764	)
Ending balance	$	286,667			313,089			54,996			202,314			76,732	$	933,798

-14-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

Changes in the allowance for credit losses for the nine months ended September 30, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		40,527			(4,067	)		(916	)		54,632			824		91,000
Net charge-offs
Charge-offs		(44,872	)		(7,966	)		(17,124	)		(62,407	)		—		(132,369	)
Recoveries		17,514			5,956			6,906			12,950			—		43,326
Net charge-offs		(27,358	)		(2,010	)		(10,218	)		(49,457	)		—		(89,043	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839	$	918,633

Despite the above allocation, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type.

In establishing the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and detailed or intensified credit review processes and also estimates losses inherent in other loans and leases on a collective basis. For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolio by loan type. The amounts of loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial loans and commercial real estate loans that are in nonaccrual status and by applying loss factors to groups of loan balances based on loan type and management’s classification of such loans under the Company’s loan grading system. Measurement of the specific loss components is typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. In determining the allowance for credit losses, the Company utilizes a loan grading system which is applied to commercial and commercial real estate credits on an individual loan basis. Loan officers are responsible for assigning grades to these loans based on standards outlined in the Company’s Credit Policy. Internal loan grades are also monitored by the Company’s loan review department to ensure consistency and strict adherence to the prescribed standards. Loan grades are assigned loss component factors that reflect the Company’s loss estimate for each group of loans and leases. Factors considered in assigning loan grades and loss component factors include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information; levels of and trends in portfolio charge-offs and recoveries; levels of and trends in portfolio delinquencies and impaired loans; changes in the risk profile of specific portfolios; trends in volume and terms of loans; effects of changes in credit concentrations; and observed trends and practices in the banking industry. As updated appraisals are obtained on individual loans or other events in the market place indicate that collateral values have significantly changed, individual loan grades are adjusted as appropriate. Changes in other factors cited may also lead to loan grade changes at any time. Except for consumer loans and residential real estate loans that are considered smaller balance homogenous loans and acquired loans that are evaluated on an aggregated basis, the Company considers a loan to be impaired for purposes of applying GAAP when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days. Regardless of loan type, the Company considers a loan to be impaired if it qualifies as a troubled debt restructuring. Modified loans, including smaller balance homogenous loans, that are considered to be troubled

-15-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows.

Information with respect to loans and leases that were considered impaired follows.

	September 30, 2015						December 31, 2014
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	144,051		166,877		35,195		132,340		165,146		31,779
Real estate:
Commercial		105,561		122,369		18,932		83,955		96,209		14,121
Residential builder and developer		6,544		10,276		788		17,632		22,044		805
Other commercial construction		2,445		3,991		391		5,480		6,484		900
Residential		83,349		101,367		4,775		88,970		107,343		4,296
Residential Alt-A		93,168		107,075		8,500		101,137		114,565		11,000
Consumer:
Home equity lines and loans		23,257		24,239		3,541		19,771		20,806		6,213
Automobile		23,985		23,985		5,118		30,317		30,317		8,070
Other		18,870		18,870		5,486		18,973		18,973		5,459
		501,230		579,049		82,726		498,575		581,887		82,643
With no related allowance recorded:
Commercial, financial, leasing, etc.		111,023		133,100		—		73,978		81,493		—
Real estate:
Commercial		77,147		84,677		—		66,777		78,943		—
Residential builder and developer		42,800		68,906		—		58,820		96,722		—
Other commercial construction		10,307		28,480		—		20,738		41,035		—
Residential		16,232		26,626		—		16,815		26,750		—
Residential Alt-A		20,891		35,836		—		26,752		46,964		—
		278,400		377,625		—		263,880		371,907		—
Total:
Commercial, financial, leasing, etc.		255,074		299,977		35,195		206,318		246,639		31,779
Real estate:
Commercial		182,708		207,046		18,932		150,732		175,152		14,121
Residential builder and developer		49,344		79,182		788		76,452		118,766		805
Other commercial construction		12,752		32,471		391		26,218		47,519		900
Residential		99,581		127,993		4,775		105,785		134,093		4,296
Residential Alt-A		114,059		142,911		8,500		127,889		161,529		11,000
Consumer:
Home equity lines and loans		23,257		24,239		3,541		19,771		20,806		6,213
Automobile		23,985		23,985		5,118		30,317		30,317		8,070
Other		18,870		18,870		5,486		18,973		18,973		5,459
Total	$	779,630		956,674		82,726		762,455		953,794		82,643

-16-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

	Three months ended September 30, 2015						Three months ended September 30, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	242,157		1,017		1,017		228,749		611		611
Real estate:
Commercial		179,327		2,327		2,327		189,952		821		821
Residential builder and developer		53,009		81		81		90,493		18		18
Other commercial construction		17,236		1,943		1,943		58,500		251		251
Residential		99,939		1,835		1,316		104,516		1,328		776
Residential Alt-A		116,191		1,539		618		131,574		1,643		681
Consumer:
Home equity lines and loans		21,952		231		66		19,268		219		81
Automobile		24,429		391		39		33,666		528		67
Other		19,238		188		23		18,677		177		44
Total	$	773,478		9,552		7,430		875,395		5,596		3,350
	Nine months ended September 30, 2015						Nine months ended September 30, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	226,243		2,123		2,123		171,227		1,379		1,379
Real estate:
Commercial		161,834		4,433		4,433		194,337		2,616		2,616
Residential builder and developer		64,165		275		275		94,453		131		131
Other commercial construction		22,130		2,166		2,166		74,531		1,694		1,694
Residential		101,997		4,639		3,011		132,606		7,784		6,146
Residential Alt-A		120,710		4,799		1,962		135,374		5,002		1,900
Consumer:
Home equity lines and loans		20,619		656		179		17,902		540		182
Automobile		26,521		1,257		136		36,560		1,742		228
Other		19,053		547		86		18,229		517		145
Total	$	763,272		20,895		14,371		875,219		21,405		14,421

In determining the allowance for credit losses, residential real estate loans and consumer loans are generally evaluated collectively after considering such factors as payment performance and recent loss experience and trends, which are mainly driven by current collateral values in the market place as well as the amount of loan defaults. Loss rates on such loans are determined by reference to recent charge-off history and are evaluated (and adjusted if deemed appropriate) through consideration of other factors including near-term forecasted loss estimates developed by the Company’s Credit Department. In arriving at such forecasts, the Company considers the current estimated fair value of its collateral based on geographical adjustments for home price depreciation/appreciation and overall borrower repayment performance. With regard to collateral values, the realizability of such values by the Company contemplates repayment of any first lien position prior to recovering amounts on a second lien position. However, residential real estate loans and outstanding balances of home equity loans and lines of credit that are more than 150 days past due are generally evaluated for collectibility on a loan-by-loan basis giving consideration to estimated collateral values. The carrying value of residential real estate loans and home equity loans and lines of credit for which a partial charge-off has been recognized aggregated $59 million and $20 million, respectively, at September 30, 2015 and $63 million and $18 million,

-17-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

respectively, at December 31, 2014. Residential real estate loans and home equity loans and lines of credit that were more than 150 days past due but did not require a partial charge-off because the net realizable value of the collateral exceeded the outstanding customer balance totaled $20 million and $28 million, respectively, at September 30, 2015 and $27 million and $28 million, respectively, at December 31, 2014.

In accordance with the previously described policies, the Company utilizes a loan grading system that is applied to all commercial loans and commercial real estate loans. Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan. Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. All larger balance criticized commercial loans and commercial real estate loans are individually reviewed by centralized loan review personnel each quarter to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. Smaller balance criticized loans are analyzed by business line risk management areas to ensure proper loan grade classification. Furthermore, criticized nonaccrual commercial loans and commercial real estate loans are considered impaired and, as a result, specific loss allowances on such loans are established within the allowance for credit losses to the extent appropriate in each individual instance. The following table summarizes the loan grades applied to the various classes of the Company’s commercial loans and commercial real estate loans.

			Real Estate
	Commercial,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(in thousands)
September 30, 2015
Pass	$	19,223,102		22,479,501		1,507,057		3,447,841
Criticized accrual		785,660		895,603		61,143		94,567
Criticized nonaccrual		224,415		176,491		46,022		12,312
Total	$	20,233,177		23,551,595		1,614,222		3,554,720
December 31, 2014
Pass	$	18,695,440		21,837,022		1,347,778		3,347,522
Criticized accrual		588,407		578,317		45,845		172,269
Criticized nonaccrual		177,445		141,600		71,517		25,699
Total	$	19,461,292		22,556,939		1,465,140		3,545,490

The Company also measures additional losses for purchased impaired loans when it is probable that the Company will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. The determination of the allocated portion of the allowance for credit losses is very subjective. Given that inherent subjectivity and potential imprecision involved in determining the allocated portion of the allowance for credit losses, the Company also provides an inherent unallocated portion of the allowance. The unallocated portion of the allowance is intended to recognize probable losses that are not otherwise identifiable and includes management’s subjective determination of amounts necessary to provide for the possible use of imprecise estimates in determining

-18-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

the allocated portion of the allowance. Therefore, the level of the unallocated portion of the allowance is primarily reflective of the inherent imprecision in the various calculations used in determining the allocated portion of the allowance for credit losses. Other factors that could also lead to changes in the unallocated portion include the effects of expansion into new markets for which the Company does not have the same degree of familiarity and experience regarding portfolio performance in changing market conditions, the introduction of new loan and lease product types, and other risks associated with the Company’s loan portfolio that may not be specifically identifiable.

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
September 30, 2015
Individually evaluated for impairment	$	35,195		19,743		13,275		14,145	$	82,358
Collectively evaluated for impairment		250,271		292,214		39,804		186,706		768,995
Purchased impaired		1,201		1,132		1,917		1,463		5,713
Allocated	$	286,667		313,089		54,996		202,314		857,066
Unallocated										76,732
Total									$	933,798
December 31, 2014
Individually evaluated for impairment	$	31,779		15,490		14,703		19,742	$	81,714
Collectively evaluated for impairment		251,607		291,244		45,061		165,140		753,052
Purchased impaired		4,652		1,193		2,146		1,151		9,142
Allocated	$	288,038		307,927		61,910		186,033		843,908
Unallocated										75,654
Total									$	919,562

-19-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
September 30, 2015
Individually evaluated for impairment	$	255,074		243,743		213,640		66,112	$	778,569
Collectively evaluated for impairment		19,973,458		28,348,685		7,983,030		11,307,085		67,612,258
Purchased impaired		4,645		128,109		14,392		2,275		149,421
Total	$	20,233,177		28,720,537		8,211,062		11,375,472	$	68,540,248
December 31, 2014
Individually evaluated for impairment	$	206,318		252,347		232,398		69,061	$	760,124
Collectively evaluated for impairment		19,244,674		27,148,382		8,406,680		10,911,359		65,711,095
Purchased impaired		10,300		166,840		18,223		2,374		197,737
Total	$	19,461,292		27,567,569		8,657,301		10,982,794	$	66,668,956

During the normal course of business, the Company modifies loans to maximize recovery efforts. If the borrower is experiencing financial difficulty and a concession is granted, the Company considers such modifications as troubled debt restructurings and classifies those loans as either nonaccrual loans or renegotiated loans. The types of concessions that the Company grants typically include principal deferrals and interest rate concessions, but may also include other types of concessions.

-20-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended September 30, 2015 and 2014:

			Recorded investment				Financial effects of modification
Three months ended September 30, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		36	$	7,893	$	7,419	$	(474	)	$	—
Combination of concession types		1		31		31		—			(6	)
Real estate:
Commercial
Principal deferral		15		4,230		4,208		(22	)		—
Combination of concession types		1		1,156		1,169		13			(54	)
Other commercial construction
Principal deferral		3		296		390		94			—
Residential
Principal deferral		31		3,540		3,743		203			—
Other		1		267		267		—			—
Combination of concession types		10		1,296		1,380		84			(178	)
Residential Alt-A
Principal deferral		1		265		276		11			—
Combination of concession types		4		605		662		57			(91	)
Consumer:
Home equity lines and loans
Principal deferral		4		727		727		—			—
Combination of concession types		22		2,003		2,003		—			(199	)
Automobile
Principal deferral		35		316		316		—			—
Other		15		93		93		—			—
Combination of concession types		25		471		471		—			(17	)
Other
Principal deferral		24		352		352		—			—
Other		5		33		33		—			—
Combination of concession types		12		117		117		—			(12	)
Total		245	$	23,691	$	23,657	$	(34	)	$	(557	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

-21-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

			Recorded investment				Financial effects of modification
Three months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	1,305	$	1,300	$	(5	)	$	—
Real estate:
Commercial
Principal deferral		8		2,081		2,068		(13	)		—
Other		1		650		—		(650	)		—
Combination of concession types		4		483		478		(5	)		(95	)
Residential builder and developer
Principal deferral		1		241		241		—			—
Other commercial construction
Principal deferral		1		145		142		(3	)		—
Residential
Principal deferral		3		98		97		(1	)		—
Combination of concession types		8		1,100		1,136		36			(135	)
Residential Alt-A
Combination of concession types		3		349		369		20			(64	)
Consumer:
Home equity lines and loans
Combination of concession types		5		519		519		—			(67	)
Automobile
Principal deferral		45		1,003		1,003		—			—
Interest rate reduction		3		30		30		—			(2	)
Other		7		96		96		—			—
Combination of concession types		19		348		348		—			(21	)
Other
Principal deferral		6		48		48		—			—
Interest rate reduction		1		2		2		—			—
Combination of concession types		24		511		511		—			(121	)
Total		154	$	9,009	$	8,388	$	(621	)	$	(505	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

-22-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the nine months ended September 30, 2015 and 2014:

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		87	$	25,483	$	24,331	$	(1,152	)	$	—
Interest rate reduction		1		99		99		—			(19	)
Other		2		8,991		8,883		(108	)		—
Combination of concession types		6		25,075		24,884		(191	)		(245	)
Real estate:
Commercial
Principal deferral		37		47,005		45,569		(1,436	)		—
Combination of concession types		6		3,238		3,242		4			(159	)
Residential builder and developer
Principal deferral		2		10,650		10,598		(52	)		—
Other commercial construction
Principal deferral		3		296		390		94			—
Residential
Principal deferral		50		4,954		5,239		285			—
Other		1		267		267		—			—
Combination of concession types		22		2,551		2,795		244			(356	)
Residential Alt-A
Principal deferral		2		426		437		11			—
Combination of concession types		7		1,239		1,298		59			(121	)
Consumer:
Home equity lines and loans
Principal deferral		6		1,946		1,946		—			—
Combination of concession types		41		3,555		3,555		—			(424	)
Automobile
Principal deferral		133		1,234		1,234		—			—
Interest rate reduction		7		137		137		—			(10	)
Other		38		134		134		—			—
Combination of concession types		42		693		693		—			(28	)
Other
Principal deferral		73		1,418		1,418		—			—
Other		12		113		113		—			—
Combination of concession types		35		384		384		—			(44	)
Total		613	$	139,888	$	137,646	$	(2,242	)	$	(1,406	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

-23-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		66	$	20,673	$	20,499	$	(174	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		32		17,452		17,384		(68	)		—
Other		1		650		—		(650	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		6		892		940		48			(208	)
Residential builder and developer
Principal deferral		2		1,639		1,639		—			—
Other commercial construction
Principal deferral		4		6,703		6,611		(92	)		—
Residential
Principal deferral		19		1,842		1,926		84			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		30		4,211		4,287		76			(483	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		19		3,101		3,134		33			(345	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		41		4,147		4,147		—			(443	)
Automobile
Principal deferral		168		2,599		2,599		—			—
Interest rate reduction		6		90		90		—			(5	)
Other		26		204		204		—			—
Combination of concession types		65		939		939		—			(83	)
Other
Principal deferral		21		141		141		—			—
Interest rate reduction		4		293		293		—			(63	)
Other		1		45		45		—			—
Combination of concession types		57		1,883		1,883		—			(585	)
Total		590	$	98,923	$	98,185	$	(738	)	$	(2,385	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

Troubled debt restructurings are considered to be impaired loans and for purposes of establishing the allowance for credit losses are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows. Impairment of troubled debt restructurings that have subsequently defaulted may also be measured based on the loan’s observable market price or the fair value of collateral if the loan is collateral-dependent. Charge-offs may also be recognized on troubled debt restructurings that have subsequently defaulted. Loans that were modified as troubled debt restructurings during the twelve months ended September 30, 2015 and 2014 and for which there was a subsequent payment default during the nine-month periods ended September 30, 2015 and 2014, respectively, were not material.

-24-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

Effective January 1, 2015, the Company adopted amended accounting and disclosure guidance for reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The amended guidance clarifies that an in-substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The adoption resulted in an insignificant increase in other real estate owned. The amount of foreclosed residential real estate property held by the Company was $43 million and $44 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, there were $151 million in loans secured by residential real estate that were in the process of foreclosure.

5. Borrowings

During February 2015, M&T Bank issued $1.5 billion of fixed rate senior notes pursuant to a Bank Note Program, of which $750 million have a 2.10% interest rate and mature in 2020 and $750 million have a 2.90% interest rate and mature in 2025.

M&T had $513 million of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at September 30, 2015 which are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities (“Capital Securities”) and common securities (“Common Securities”). The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures. The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust’s securities possessing general voting powers. The Capital Securities represent preferred undivided interests in the assets of the corresponding trust.

Holders of the Capital Securities receive preferential cumulative cash distributions unless M&T exercises its right to extend the payment of interest on the Junior Subordinated Debentures as allowed by the terms of each such debenture, in which case payment of distributions on the respective Capital Securities will be deferred for comparable periods. During an extended interest period, M&T may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. In general, the agreements governing the Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by M&T of the payment of distributions on, the redemption of, and any liquidation distribution with respect to the Capital Securities. The obligations under such guarantee and the Capital Securities are subordinate and junior in right of payment to all senior indebtedness of M&T.

The Capital Securities will remain outstanding until the Junior Subordinated Debentures are repaid at maturity, are redeemed prior to maturity or are distributed in liquidation to the Trusts. The Capital Securities are mandatorily redeemable in whole, but not in part, upon repayment at the stated maturity dates (ranging from 2027 to 2033) of the Junior Subordinated Debentures or the earlier redemption of the Junior Subordinated Debentures in whole upon the occurrence of one or more events set forth in the indentures relating to the Capital Securities, and in whole or in part at any time after an optional redemption prior to contractual maturity contemporaneously with the optional redemption of the related Junior Subordinated Debentures in whole or in part, subject to possible regulatory approval.

-25-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

5. Borrowings, continued

On April 15, 2015, M&T redeemed all of the issued and outstanding Capital Securities issued by M&T Capital Trust I, M&T Capital Trust II and M&T Capital Trust III, and the related Junior Subordinated Debentures held by those respective trusts. In the aggregate, $323 million of Junior Subordinated Debentures were redeemed. In February 2014, M&T redeemed all of the issued and outstanding 8.5% $350 million Capital Securities issued by M&T Capital Trust IV and the related Junior Subordinated Debentures held by M&T Capital Trust IV.

Also included in long-term borrowings are agreements to repurchase securities of $1.4 billion at each of September 30, 2015 and December 31, 2014. The agreements reflect various repurchase dates in 2016 and 2017 and are subject to legally enforceable master netting arrangements, however, the Company has not offset any amounts related to these agreements in its consolidated financial statements. The Company posted collateral consisting primarily of government guaranteed mortgage-backed securities of $1.5 billion at each of September 30, 2015 and December 31, 2014.

6. Shareholders’ equity

M&T is authorized to issue 1,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights.

Issued and outstanding preferred stock of M&T as of September 30, 2015 and December 31, 2014 is presented below:

	Shares issued and outstanding		Carrying value
	(dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share		230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		151,500	$	151,500
Series D (b)
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000	$	500,000
Series E (c)
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E, $1,000 liquidation preference per share		350,000	$	350,000

(a) Dividends, if declared, are paid at 6.375%. Warrants to purchase M&T common stock at $73.86 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 719,175 at September 30, 2015 and 721,490 at December 31, 2014.

-26-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

6. Shareholders’ equity, continued

(b) Dividends, if declared, are paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate (“LIBOR”) plus 361 basis points (hundredths of one percent). The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A warrants mentioned in (a) above, a warrant to purchase 95,383 shares of M&T common stock at $518.96 per share was outstanding at September 30, 2015 and December 31, 2014. The obligation under that warrant was assumed by M&T in an acquisition.

7. Pension plans and other postretirement benefits

The Company provides defined benefit pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended September 30
	2015			2014			2015			2014
	(in thousands)
Service cost	$	5,916			5,130			188			151
Interest cost on projected benefit obligation		17,754			17,290			651			695
Expected return on plan assets		(23,527	)		(22,892	)		—			—
Amortization of prior service credit		(1,501	)		(1,638	)		(340	)		(340	)
Amortization of net actuarial loss		11,207			3,624			26			—
Net periodic benefit cost	$	9,849			1,514			525			506
	Pension benefits						Other postretirement benefits
	Nine months ended September 30
	2015			2014			2015			2014
	(in thousands)
Service cost	$	17,748			15,390			562			453
Interest cost on projected benefit obligation		53,261			51,871			1,953			2,084
Expected return on plan assets		(70,578	)		(68,676	)		—			—
Amortization of prior service credit		(4,504	)		(4,914	)		(1,019	)		(1,019	)
Amortization of net actuarial loss		33,619			10,871			79			—
Net periodic benefit cost	$	29,546			4,542			1,575			1,518

-27-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

7. Pension plans and other postretirement benefits, continued

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $14,281,000 and $13,558,000 for the three months ended September 30, 2015 and 2014, respectively, and $44,377,000 and $41,963,000 for the nine months ended September 30, 2015 and 2014, respectively.

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2015			2014			2015			2014
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	280,401			275,344		$	808,702			788,697
Less: Preferred stock dividends (a)		(20,318	)		(20,443	)		(60,953	)		(55,560	)
Net income available to common equity		260,083			254,901			747,749			733,137
Less: Income attributable to unvested stock-based compensation awards		(2,746	)		(2,996	)		(8,122	)		(8,830	)
Net income available to common shareholders	$	257,337			251,905		$	739,627			724,307
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		134,049			132,832			133,805			132,372
Less: Unvested stock-based compensation awards		(1,419	)		(1,567	)		(1,458	)		(1,590	)
Weighted-average shares outstanding		132,630			131,265			132,347			130,782
Basic earnings per common share	$	1.94			1.92		$	5.59			5.54

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

-28-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

8. Earnings per common share, continued

The computations of diluted earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2015			2014			2015			2014
	(in thousands, except per share)
Net income available to common equity	$	260,083			254,901		$	747,749			733,137
Less: Income attributable to unvested stock-based compensation awards		(2,737	)		(2,984	)		(8,093	)		(8,793	)
Net income available to common shareholders	$	257,346			251,917		$	739,656			724,344
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		134,049			132,832			133,805			132,372
Less: Unvested stock-based compensation awards		(1,419	)		(1,567	)		(1,458	)		(1,590	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		746			863			742			916
Adjusted weighted-average shares outstanding		133,376			132,128			133,089			131,698
Diluted earnings per common share	$	1.93			1.91		$	5.56			5.50

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 1.5 million and 1.7 million common shares during the three-month periods ended September 30, 2015 and 2014, respectively, and 1.9 million and 2.1 million common shares during the nine-month periods ended September 30, 2015 and 2014, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

-29-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income

The following table displays the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:

	Investment Securities
	With OTTI (a)		All other			Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2015	$	7,438		201,828			(503,027	)		(4,082	)	$	(297,843	)		116,849		$	(180,994	)
Other comprehensive income before reclassifications:
Unrealized holding gains (losses), net		9,699		(11,139	)		—			—			(1,440	)		952			(488	)
Foreign currency translation adjustment		—		—			—			(735	)		(735	)		214			(521	)
Gains on cash flow hedges		—		—			—			1,453			1,453			(568	)		885
Total other comprehensive income before reclassifications		9,699		(11,139	)		—			718			(722	)		598			(124	)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		—		2,417			—			—			2,417	(b)		(944	)		1,473
Losses realized in net income		—		108			—			—			108	(c)		(40	)		68
Accretion of net gain on terminated cash flow hedges		—		—			—			(102	)		(102	)(d)		40			(62	)
Amortization of prior service credit		—		—			(5,523	)		—			(5,523	)(e)		2,359			(3,164	)
Amortization of actuarial losses		—		—			33,698			—			33,698	(e)		(14,368	)		19,330
Total reclassifications		—		2,525			28,175			(102	)		30,598			(12,953	)		17,645
Total gain (loss) during the period		9,699		(8,614	)		28,175			616			29,876			(12,355	)		17,521
Balance – September 30, 2015	$	17,137		193,214			(474,852	)		(3,466	)	$	(267,967	)		104,494		$	(163,473	)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income, continued

	Investment Securities
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2014	$	37,255		18,450		(161,617	)		115		$	(105,797	)		41,638		$	(64,159	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		12,038		109,263		—			—			121,301			(47,615	)		73,686
Foreign currency translation adjustment		—		—		—			(2,314	)		(2,314	)		810			(1,504	)
Unrealized losses on cash flow hedges		—		—		—			(162	)		(162	)		64			(98	)
Total other comprehensive income before reclassifications		12,038		109,263		—			(2,476	)		118,825			(46,741	)		72,084
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		1		2,539		—			—			2,540	(b)		(997	)		1,543
Amortization of prior service credit		—		—		(5,933	)		—			(5,933	)(e)		2,328			(3,605	)
Amortization of actuarial losses		—		—		10,871			—			10,871	(e)		(4,267	)		6,604
Total reclassifications		1		2,539		4,938			—			7,478			(2,936	)		4,542
Total gain (loss) during the period		12,039		111,802		4,938			(2,476	)		126,303			(49,677	)		76,626
Balance – September 30, 2014	$	49,294		130,252		(156,679	)		(2,361	)	$	20,506			(8,039	)	$	12,467

(a) Other-than-temporary impairment

(b) Included in interest income

(c) Included in loss on bank investment securities

(d) Included in interest expense

(e) Included in salaries and employee benefits expense

Accumulated other comprehensive income (loss), net consisted of the following:

	Investment securities					Defined benefit
	With OTTI		All other			plans			Other			Total
	(in thousands)
Balance – December 31, 2014	$	4,518		122,683			(305,589	)		(2,606	)	$	(180,994	)
Net gain (loss) during period		5,926		(4,873	)		16,166			302			17,521
Balance – September 30, 2015	$	10,444		117,810			(289,423	)		(2,304	)	$	(163,473	)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting and collateral provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant as of September 30, 2015.

The net effect of interest rate swap agreements was to increase net interest income by $11 million for each of the three-month periods ended September 30, 2015 and 2014 and $33 million and $34 million for the nine-month periods ended September 30, 2015 and 2014, respectively.

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional amount		Average maturity		Weighted- average rate
					Fixed			Variable
	(in thousands)		(in years)
September 30, 2015
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		1.9		4.42	%		1.29	%
December 31, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.7		4.42	%		1.19	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

The use of cash flow hedges to manage the variability of cash flows associated with the then-forecasted issuance of long-term debt did not have a significant impact on the Company’s consolidated financial position or results of operations.

The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in fair value of certain commitments to originate real estate loans for sale.

Derivative financial instruments used for trading account purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures. Interest rate contracts entered into for trading account purposes had notional values of $17.6 billion at each of September 30, 2015 and December 31, 2014. The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes aggregated $1.6 billion and $1.3 billion at September 30, 2015 and December 31, 2014, respectively.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset derivatives				Liability derivatives
	Fair value				Fair value
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	60,782		73,251	$	—		—
Commitments to sell real estate loans (a)		899		728		5,142		4,217
		61,681		73,979		5,142		4,217
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		17,832		17,396		185		49
Commitments to sell real estate loans (a)		26		754		4,162		4,330
Trading:
Interest rate contracts (b)		268,332		215,614		221,626		173,513
Foreign exchange and other option and futures contracts (b)		13,404		31,112		11,380		29,950
		299,594		264,876		237,353		207,842
Total derivatives	$	361,275		338,855	$	242,495		212,059

(a) Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

	Amount of gain (loss) recognized
	Three months ended September 30, 2015					Three months ended September 30, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(2,719	)		2,382	$	(16,792	)		16,380
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	4,120				$	132
Foreign exchange and other option and futures contracts (b)		2,441					(781	)
Total	$	6,561				$	(649	)

	Amount of gain (loss) recognized
	Nine months ended September 30, 2015					Nine months ended September 30, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(12,469	)		11,495	$	(26,627	)		25,658
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	6,552				$	1,214
Foreign exchange and other option and futures contracts (b)		1,563					(6,597	)
Total	$	8,115				$	(5,383	)

(a) Reported as other revenues from operations.

(b) Reported as trading account and foreign exchange gains.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

In addition, the Company also has commitments to sell and commitments to originate residential and commercial real estate loans that are considered derivatives. The Company designates certain of the commitments to sell real estate loans as fair value hedges of real estate loans held for sale. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. As a result of these activities, net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans were approximately $23 million and $28 million at September 30, 2015 and December 31, 2014, respectively. Changes in unrealized gains and losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied.

The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions.

The aggregate fair value of derivative financial instruments in a liability position, which are subject to enforceable master netting arrangements, was $96 million and $161 million at September 30, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net liability positions with counterparties aggregated $91 million and $103 million at September 30, 2015 and December 31, 2014, respectively. The Company was required to post collateral relating to those positions of $81 million and $90 million at September 30, 2015 and December 31, 2014, respectively. Certain of the Company’s derivative financial instruments contain provisions that require the Company to maintain specific credit ratings from credit rating agencies to avoid higher collateral posting requirements. If the Company’s debt rating were to fall below specified ratings, the counterparties to the derivative financial instruments could demand immediate incremental collateralization on those instruments in a net liability position. The aggregate fair value of all derivative financial instruments with such credit risk-related contingent features in a net liability position on September 30, 2015 was $17 million, for which the Company had posted collateral of $11 million in the normal course of business. If the credit-risk-related contingent features had been triggered on September 30, 2015, the maximum amount of additional collateral the Company would have been required to post to counterparties was $6 million.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $40 million and $104 million at September 30, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net asset positions with counterparties aggregated $35 million and $46 million at September 30, 2015 and December 31, 2014, respectively. Counterparties posted collateral relating to those positions of $35 million and $46 million at September 30, 2015 and December 31, 2014, respectively. Trading account interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and often contain collateral provisions.

In addition to the derivative contracts noted above, the Company clears certain derivative transactions through a clearinghouse, rather than directly with counterparties. Those transactions cleared through a clearinghouse require initial margin collateral and additional collateral for contracts in a net liability position. The net fair values of derivative financial instruments

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

cleared through clearinghouses was a net liability position of $96 million and $35 million at September 30, 2015 and December 31, 2014, respectively. Collateral posted with clearinghouses was $143 million and $61 million at September 30, 2015 and December 31, 2014, respectively.

11. Variable interest entities and asset securitizations

During the three and nine months ended September 30, 2015, the Company securitized approximately $15 million and $51 million, respectively, of one-to-four family residential real estate loans that had been originated for sale in guaranteed mortgage securitizations with the Government National Mortgage Association (“Ginnie Mae”) and retained the resulting securities in its investment securities portfolio. In similar transactions for the three months and nine months ended September 30, 2014, the Company securitized $35 million and $110 million, respectively, of one-to-four family residential real estate loans. Gains associated with those transactions were not significant.

In accordance with GAAP, the Company determined that it was the primary beneficiary of a residential mortgage loan securitization trust considering its role as servicer and its retained subordinated interests in the trust. As a result, the Company has included the one-to-four family residential mortgage loans that were included in the trust in its consolidated financial statements. At September 30, 2015 and December 31, 2014, the carrying values of the loans in the securitization trust were $84 million and $98 million, respectively. The outstanding principal amount of mortgage-backed securities issued by the qualified special purpose trust that was held by parties unrelated to M&T at September 30, 2015 and December 31, 2014 was $13 million and $15 million, respectively. Because the transaction was non-recourse, the Company’s maximum exposure to loss as a result of its association with the trust at September 30, 2015 is limited to realizing the carrying value of the loans less the amount of the mortgage-backed securities held by the third parties.

As described in note 5, M&T has issued junior subordinated debentures payable to various trusts that have issued Capital Securities. M&T owns the common securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At September 30, 2015 and December 31, 2014, the Company included the junior subordinated debentures as “long-term borrowings” in its consolidated balance sheet and recognized $24 million and $34 million, respectively, in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 5.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.2 billion at September 30, 2015 and December 31, 2014, respectively. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $301 million, including $85 million of unfunded commitments, at September 30, 2015 and $243 million, including $56

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

11. Variable interest entities and asset securitizations, continued

million of unfunded commitments, at December 31, 2014. Contingent commitments to provide additional capital contributions to these partnerships were not material at September 30, 2015. The Company has not provided financial or other support to the partnerships that was not contractually required. Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities. The Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, in accordance with the accounting provisions for variable interest entities, the partnership entities are not included in the Company’s consolidated financial statements. As described in note 1, effective January 1, 2015 the Company retrospectively adopted for all periods presented amended accounting guidance on the accounting for investments in qualified affordable housing projects whereby the Company’s investment cost is amortized to income taxes in the consolidated statement of income as tax credits and other tax benefits resulting from deductible losses associated with the projects are received. The Company amortized $10 million and $31 million of its investments in qualified affordable housing projects to income tax expense during the three months and nine months ended September 30, 2015, respectively, and recognized $15 million and $44 million of tax credits and other tax benefits during those respective periods. Similarly, for the three months and nine months ended September 30, 2014, the Company amortized $14 million and $39 million, respectively, of its investments in qualified affordable housing projects to income tax expense, and recognized $18 million and $53 million of tax credits and other tax benefits during those respective periods.

12. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections at September 30, 2015.

Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.

• Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.

• Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

• Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. The following is

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

Trading account assets and liabilities

Trading account assets and liabilities consist primarily of interest rate swap agreements and foreign exchange contracts with customers who require such services with offsetting positions with third parties to minimize the Company’s risk with respect to such transactions. The Company generally determines the fair value of its derivative trading account assets and liabilities using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. Mutual funds held in connection with deferred compensation arrangements have been classified as Level 1 valuations. Valuations of investments in municipal and other bonds can generally be obtained through reference to quoted prices in less active markets for the same or similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

Investment securities available for sale

The majority of the Company’s available-for-sale investment securities have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2. Certain investments in mutual funds and equity securities are actively traded and, therefore, have been classified as Level 1 valuations.

Included in collateralized debt obligations are securities backed by trust preferred securities issued by financial institutions and other entities. The Company could not obtain pricing indications for many of these securities from its two primary independent pricing sources. The Company, therefore, performed internal modeling to estimate the cash flows and fair value of its portfolio of securities backed by trust preferred securities at September 30, 2015 and December 31, 2014. The modeling techniques included estimating cash flows using bond-specific assumptions about future collateral defaults and related loss severities. The resulting cash flows were then discounted by reference to market yields observed in the single-name trust preferred securities market. In determining a market yield applicable to the estimated cash flows, a margin over LIBOR ranging from 4% to 10%, with a weighted-average of 8%, was used. Significant unobservable inputs used in the determination of estimated fair value of collateralized debt obligations are included in the accompanying table of significant unobservable inputs to Level 3 measurements. At September 30, 2015, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities were $28 million and $50 million, respectively, and at December 31, 2014 were $30 million and $50 million, respectively. Securities backed by trust preferred securities issued by financial institutions and other entities constituted all of the available-for-sale investment securities classified as Level 3 valuations.

The Company ensures an appropriate control framework is in place over the valuation processes and techniques used for significant Level 3 fair value measurements. Internal pricing models used for significant valuation measurements have generally been subjected to validation procedures including testing of mathematical constructs, review of valuation methodology and significant assumptions used.

Real estate loans held for sale

The Company utilizes commitments to sell real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. The carrying value of hedged real estate loans held for sale includes changes in

-38-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

estimated fair value during the hedge period. Typically, the Company attempts to hedge real estate loans originated for sale from the date of close through the sale date. The fair value of hedged real estate loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans with similar characteristics and, accordingly, such loans have been classified as a Level 2 valuation.

Commitments to originate real estate loans for sale and commitments to sell real estate loans

The Company enters into various commitments to originate real estate loans for sale and commitments to sell real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value on the consolidated balance sheet. The estimated fair values of such commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans to certain government-sponsored entities and other parties. The fair valuations of commitments to sell real estate loans generally result in a Level 2 classification. The estimated fair value of commitments to originate real estate loans for sale are adjusted to reflect the Company’s anticipated commitment expirations. The estimated commitment expirations are considered significant unobservable inputs contributing to the Level 3 classification of commitments to originate real estate loans for sale. Significant unobservable inputs used in the determination of estimated fair value of commitments to originate real estate loans for sale are included in the accompanying table of significant unobservable inputs to Level 3 measurements.

Interest rate swap agreements used for interest rate risk management

The Company utilizes interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of earning assets and interest-bearing liabilities. The Company generally determines the fair value of its interest rate swap agreements using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. The Company has considered counterparty credit risk in the valuation of its interest rate swap agreement assets and has considered its own credit risk in the valuation of its interest rate swap agreement liabilities.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The following tables present assets and liabilities at September 30, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at September 30, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	340,710		48,006		292,704		—
Investment securities available for sale:
U.S. Treasury and federal agencies		199,394		—		199,394		—
Obligations of states and political subdivisions		6,296		—		6,296		—
Mortgage-backed securities:
Government issued or guaranteed		10,714,048		—		10,714,048		—
Privately issued		82		—		—		82
Collateralized debt obligations		49,876		—		—		49,876
Other debt securities		120,468		—		120,468		—
Equity securities		69,345		40,370		28,975		—
		11,159,509		40,370		11,069,181		49,958
Real estate loans held for sale		493,453		—		493,453		—
Other assets (b)		79,539		—		61,707		17,832
Total assets	$	12,073,211		88,376		11,917,045		67,790
Trading account liabilities	$	233,006		—		233,006		—
Other liabilities (b)		9,489		—		9,304		185
Total liabilities	$	242,495		—		242,310		185
	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2015 and the year ended December 31, 2014.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2015	$	88		$	50,483		$	11,206
Total gains (losses) realized/unrealized:
Included in earnings		—			—			21,709	(a)
Included in other comprehensive income		—			(472	)(d)		—
Settlements		(6	)		(135	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,268	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,488	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2014	$	119		$	56,200		$	22,023
Total gains (losses) realized/unrealized:
Included in earnings		—			—			9,657	(a)
Included in other comprehensive income		—			2,201	(d)		—
Settlements		(7	)		(3,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,188	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	12,421	(a)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			67,611	(a)
Included in other comprehensive income		—			5,153	(d)		—
Settlements		(21	)		(5,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(67,311	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,965	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			63,557	(a)
Included in other comprehensive income		272	(d)		11,333	(d)		—
Settlements		(2,010	)		(19,608	)		—
Transfers in and/or out of Level 3 (b)		—			—			(51,006	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	17,773	(a)

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12. Fair value measurements, continued

(a) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(b) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(c) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(d) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow.

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2, unless significant adjustments have been made to the valuation that are not readily observable by market participants. Non-real estate collateral supporting commercial loans generally consists of business assets such as receivables, inventory and equipment. Fair value estimations are typically determined by discounting recorded values of those assets to reflect estimated net realizable value considering specific borrower facts and circumstances and the experience of credit personnel in their dealings with similar borrower collateral liquidations. Such discounts were generally in the range of 10% to 90% at September 30, 2015. As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3. Loans subject to nonrecurring fair value measurement were $177 million at September 30, 2015 ($106 million and $71 million of which were classified as Level 2 and Level 3, respectively), $173 million at December 31, 2014 ($94 million and $79 million of which were classified as Level 2 and Level 3, respectively) and $196 million at September 30, 2014 ($112 million and $84 million of which were classified as Level 2 and Level 3, respectively). Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2015 were decreases of $11 million and $53 million for the three- and nine-month periods ended September 30, 2015, respectively. Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2014 were decreases of $23 million and $46 million for the three- and nine-month periods ended September 30, 2014, respectively.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans are primarily comprised of commercial and residential real property and are generally measured at the lower of cost or fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2. Assets taken in

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

foreclosure of defaulted loans subject to nonrecurring fair value measurement were $15 million and $21 million at September 30, 2015 and September 30, 2014, respectively. Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month and nine-month periods ended September 30, 2015 and 2014.

Significant unobservable inputs to Level 3 measurements

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at September 30, 2015 and December 31, 2014:

	Fair value at September 30, 2015		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	82		Two independent pricing quotes		—		—
Collateralized debt obligations		49,876		Discounted cash flow		Probability of default		12%-57% (33%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,647		Discounted cash flow		Commitment expirations		0%-66% (38%)
	Fair value at December 31, 2014		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103		Two independent pricing quotes		—		—
Collateralized debt obligations		50,316		Discounted cash flow		Probability of default		12%-57% (36%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,347		Discounted cash flow		Commitment expirations		0%-96% (17%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

Sensitivity of fair value measurements to changes in unobservable inputs

An increase (decrease) in the probability of default and loss severity for collateralized debt securities would generally result in a lower (higher) fair value measurement.

An increase (decrease) in the estimate of expirations for commitments to originate real-estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing.

Disclosures of fair value of financial instruments

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	September 30, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,249,704		$	1,249,704		$	1,193,831	$	55,873		$	—
Interest-bearing deposits at banks		4,713,266			4,713,266			—		4,713,266			—
Trading account assets		340,710			340,710			48,006		292,704			—
Investment securities		14,494,539			14,521,740			40,370		14,283,075			198,295
Loans and leases:
Commercial loans and leases		20,233,177			19,920,031			—		—			19,920,031
Commercial real estate loans		28,720,537			28,633,973			—		71,357			28,562,616
Residential real estate loans		8,211,062			8,302,630			—		4,918,613			3,384,017
Consumer loans		11,375,472			11,280,973			—		—			11,280,973
Allowance for credit losses		(933,798	)		—			—		—			—
Loans and leases, net		67,606,450			68,137,607			—		4,989,970			63,147,637
Accrued interest receivable		242,935			242,935			—		242,935			—
Financial liabilities:
Noninterest-bearing deposits	$	(28,189,330	)	$	(28,189,330	)	$	—	$	(28,189,330	)	$	—
Savings deposits and NOW accounts		(41,757,661	)		(41,757,661	)		—		(41,757,661	)		—
Time deposits		(2,791,367	)		(2,810,224	)		—		(2,810,224	)		—
Deposits at Cayman Islands office		(206,185	)		(206,185	)		—		(206,185	)		—
Short-term borrowings		(173,783	)		(173,783	)		—		(173,783	)		—
Long-term borrowings		(10,174,289	)		(10,219,180	)		—		(10,219,180	)		—
Accrued interest payable		(73,475	)		(73,475	)		—		(73,475	)		—
Trading account liabilities		(233,006	)		(233,006	)		—		(233,006	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,647		$	17,647		$	—	$	—		$	17,647
Commitments to sell real estate loans		(8,379	)		(8,379	)		—		(8,379	)		—
Other credit-related commitments		(118,656	)		(118,656	)		—		—			(118,656	)
Interest rate swap agreements used for interest rate risk management		60,782			60,782			—		60,782			—

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12. Fair value measurements, continued

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management		73,251			73,251			—		73,251			—

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. The following assumptions, methods and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

Cash and cash equivalents, interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable

Due to the nature of cash and cash equivalents and the near maturity of interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable, the Company estimated that the carrying amount of such instruments approximated estimated fair value.

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12. Fair value measurements, continued

Investment securities

Estimated fair values of investments in readily marketable securities were generally based on quoted market prices. Investment securities that were not readily marketable were assigned amounts based on estimates provided by outside parties or modeling techniques that relied upon discounted calculations of projected cash flows or, in the case of other investment securities, which include capital stock of the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York, at an amount equal to the carrying amount.

Loans and leases

In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end. A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans. Projected loan cash flows were adjusted for estimated credit losses. However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans and leases would seek.

Deposits

Pursuant to GAAP, the estimated fair value ascribed to noninterest-bearing deposits, savings deposits and NOW accounts must be established at carrying value because of the customers’ ability to withdraw funds immediately. Time deposit accounts are required to be revalued based upon prevailing market interest rates for similar maturity instruments. As a result, amounts assigned to time deposits were based on discounted cash flow calculations using prevailing market interest rates based on the Company’s pricing at the respective date for deposits with comparable remaining terms to maturity.

The Company believes that deposit accounts have a value greater than that prescribed by GAAP. The Company feels, however, that the value associated with these deposits is greatly influenced by characteristics of the buyer, such as the ability to reduce the costs of servicing the deposits and deposit attrition which often occurs following an acquisition.

Long-term borrowings

The amounts assigned to long-term borrowings were based on quoted market prices, when available, or were based on discounted cash flow calculations using prevailing market interest rates for borrowings of similar terms and credit risk.

Other commitments and contingencies

As described in note 13, in the normal course of business, various commitments and contingent liabilities are outstanding, such as loan commitments, credit guarantees and letters of credit. The Company’s pricing of such financial instruments is based largely on credit quality and relationship, probability of funding and other requirements. Loan commitments often have fixed expiration dates and contain termination and other clauses which provide for relief from funding in the event of significant deterioration in the credit quality of the customer. The rates and terms of the Company’s loan commitments, credit guarantees and letters of credit are competitive with other financial institutions operating in markets served by the Company. The Company believes that the carrying amounts, which are included in other liabilities, are reasonable estimates of the fair value of these financial instruments.

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities.

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12. Fair value measurements, continued

Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.

13. Commitments and contingencies

In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.

	September 30,		December 31,
	2015		2014
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	5,535,704		6,194,516
Commercial real estate loans to be sold		89,374		212,257
Other commercial real estate and construction		5,356,256		4,834,699
Residential real estate loans to be sold		587,206		432,352
Other residential real estate		674,338		524,399
Commercial and other		12,144,962		11,080,856
Standby letters of credit		3,441,337		3,706,888
Commercial letters of credit		44,082		46,965
Financial guarantees and indemnification contracts		2,922,743		2,490,050
Commitments to sell real estate loans		977,822		1,237,294

Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

13. Commitments and contingencies, continued

Financial guarantees and indemnification contracts are oftentimes similar to standby letters of credit and include mandatory purchase agreements issued to ensure that customer obligations are fulfilled, recourse obligations associated with sold loans, and other guarantees of customer performance or compliance with designated rules and regulations. Included in financial guarantees and indemnification contracts are loan principal amounts sold with recourse in conjunction with the Company’s involvement in the Fannie Mae Delegated Underwriting and Servicing program. The Company’s maximum credit risk for recourse associated with loans sold under this program totaled approximately $2.5 billion and $2.4 billion at September 30, 2015 and December 31, 2014, respectively.

Since many loan commitments, standby letters of credit, and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows.

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are considered derivatives and along with commitments to originate real estate loans to be held for sale are generally recorded in the consolidated balance sheet at estimated fair market value.

The Company also has commitments under long-term operating leases.

The Company is contractually obligated to repurchase previously sold residential real estate loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. Subject to the outcome of the matter discussed in the following paragraph, at September 30, 2015, management believes that any further liability arising out of the Company’s obligation to loan purchasers is not material to the Company’s consolidated financial position.

The Company is the subject of an investigation by government agencies relating to the origination of Federal Housing Administration (“FHA”) insured residential home loans and residential home loans sold to The Federal Home Loan Mortgage Corporation (“Freddie Mac”) and The Federal National Mortgage Association (“Fannie Mae”). A number of other U.S. financial institutions have announced similar investigations. Regarding FHA loans, the U.S. Department of Housing and Urban Development (“HUD”) Office of Inspector General and the U.S. Department of Justice (collectively, the “Government”) are investigating whether the Company complied with underwriting guidelines concerning certain loans where HUD paid FHA insurance claims. The Company is fully cooperating with the investigation. The Government has advised the Company that based upon its review of a sample of loans for which an FHA insurance claim was paid by HUD, some of the loans do not meet underwriting guidelines. The Company, based on its own review of the sample, does not agree with the sampling methodology and loan analysis employed by the Government. Regarding loans originated by the Company and sold to Freddie Mac and Fannie Mae, the investigation concerns whether the mortgages sold to Freddie Mac and Fannie Mae comply with applicable underwriting guidelines. The Company is also cooperating with that portion of the investigation. The investigation could lead to claims by the Government under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which allow treble and other special damages substantially in excess of actual losses. Remedies in these proceedings or settlements may include restitution, fines, penalties, or alterations in the

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

13. Commitments and contingencies, continued

Company’s business practices. The Company and the Government continue settlement discussions regarding the investigation.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and other matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $40 million. Although the Company does not believe that the outcome of pending litigations will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

14. Segment information

Reportable segments have been determined based upon the Company’s internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 2014. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. Effective January 1, 2015, the Company made certain changes to its methodology for measuring segment profit and loss. Those changes in the measurement of segment profitability were largely the result of updated funds transfer pricing and various cost allocation reviews. The most significant changes to the funds transfer pricing resulted from ascribing a longer duration to non-maturity deposits, which significantly benefitted the Retail Banking segment. The cost allocation review having the largest impact related to a branch cost study. That study consisted of transaction reviews and time studies which resulted in a higher cost allocation from the Retail Banking segment to the Business Banking segment. In addition, effective July 1, 2015, the Company changed its internal profitability reporting to move a builder and developer lending unit from the Residential Mortgage Banking segment to the Commercial Real Estate segment. Accordingly, financial information presented herein for the periods prior to July 1, 2015 has been reclassified to conform to the current presentation. Total revenues and net income decreased in the Residential Banking segment and increased in the Commercial Real Estate segment for the three months ended September 30, 2014 by $5 million and $2 million, respectively, and for the nine months ended September 30, 2014 by $13 million and $5 million, respectively. The impact of the change

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

to total revenues and net income for the second quarter of 2015 was $6 million and $3 million, respectively, and for the first half of 2015 was $12 million and $5 million, respectively. Prior period financial information has been restated to reflect the changes noted to provide segment information on a comparable basis, as noted in the following tables.

	Three months ended September 30, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	30,905			(5,867	)		25,038
Commercial Banking		101,740			(1,035	)		100,705
Commercial Real Estate		78,581			95			78,676
Discretionary Portfolio		8,279			4,216			12,495
Residential Mortgage Banking		25,021			(2,272	)		22,749
Retail Banking		32,901			39,156			72,057
All Other		(2,083	)		(34,293	)		(36,376	)
Total	$	275,344			—			275,344
	Nine months ended September 30, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	87,263			(13,500	)		73,763
Commercial Banking		306,863			(3,226	)		303,637
Commercial Real Estate		230,668			(414	)		230,254
Discretionary Portfolio		34,538			4,360			38,898
Residential Mortgage Banking		72,144			(7,464	)		64,680
Retail Banking		94,646			119,418			214,064
All Other		(37,425	)		(99,174	)		(136,599	)
Total	$	788,697			—			788,697

As also described in note 22 to the Company’s 2014 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Company’s reportable segments, but are included in the “All Other” category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

Information about the Company’s segments is presented in the following table:

	Three months ended September 30
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	112,650		1,167			23,995		$	113,425		1,082			25,038
Commercial Banking		270,554		1,097			108,422			247,282		1,281			100,705
Commercial Real Estate		181,478		469			85,312			170,772		442			78,676
Discretionary Portfolio		13,773		(5,365	)		5,113			24,835		(5,478	)		12,495
Residential Mortgage Banking		99,518		12,918			21,150			104,092		12,875			22,749
Retail Banking		308,520		3,292			64,721			316,052		3,735			72,057
All Other		146,033		(13,578	)		(28,312	)		143,712		(13,937	)		(36,376	)
Total	$	1,132,526		—			280,401		$	1,120,170		—			275,344

	Nine months ended September 30
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	332,341		3,334			74,160			337,929		3,359			73,763
Commercial Banking		774,392		3,281			312,926			748,978		3,834			303,637
Commercial Real Estate		535,909		978			250,501			500,814		1,315			230,254
Discretionary Portfolio		49,724		(16,184	)		21,823			79,404		(15,799	)		38,898
Residential Mortgage Banking		310,843		36,741			75,462			299,237		34,395			64,680
Retail Banking		914,484		9,688			202,415			934,386		11,137			214,064
All Other		494,779		(37,838	)		(128,585	)		421,488		(38,241	)		(136,599	)
Total	$	3,412,472		—			808,702			3,322,236		—			788,697

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

	Average total assets (b)
	Nine months ended September 30				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,321		5,287		5,281
Commercial Banking		24,041		22,805		22,892
Commercial Real Estate		18,632		17,187		17,370
Discretionary Portfolio		23,153		20,306		20,798
Residential Mortgage Banking		3,007		3,016		3,076
Retail Banking		10,912		10,348		10,449
All Other		12,279		11,003		12,277
Total	$	97,345		89,952		92,143

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $6,248,000 and $5,841,000 for the three-month periods ended September 30, 2015 and 2014, respectively, and $18,106,000 and $17,635,000 for the nine-month periods ended September 30, 2015 and 2014, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

(b) Average assets of the Commercial Real Estate and Residential Mortgage Banking segments for the nine months ended September 30, 2014 and the year ended December 31, 2014 differ by $246 million and $257 million, respectively, from the previously reported balances reflecting the change in the Company’s internal profitability reporting for a builder and developer lending unit which moved assets held by that unit from the Residential Mortgage Banking Segment to the Commercial Real Estate Segment.

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 $33 million at September 30, 2015.

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 mortgage loans from BLG and Bayview Financial having outstanding principal balances of $4.3 billion and $4.8 billion at September 30, 2015 and December 31, 2014, respectively. Revenues from those servicing rights were $6 million for each of the quarters ended September 30, 2015 and 2014, respectively, and $17 million and $20 million for the nine months ended September 30, 2015 and 2014, respectively. The Company sub-services residential real estate loans for Bayview Financial having outstanding principal

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

balances totaling $39.5 billion and $41.3 billion at September 30, 2015 and December 31, 2014, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $26 million and $29 million for the three-month periods ended September 30, 2015 and 2014, respectively, and $91 million and $82 million for the nine-month periods ended September 30, 2015 and 2014, respectively. In addition, the Company held $187 million and $202 million of mortgage-backed securities in its held-to-maturity portfolio at September 30, 2015 and December 31, 2014, respectively, that were securitized by Bayview Financial.

16. Sale of trust accounts

In April 2015, the Company sold the trade processing business within the retirement services division of its Institutional Client Services business. That sale resulted in an after-tax gain of $23 million ($45 million pre-tax) that reflected the allocation of approximately $11 million of previously recorded goodwill to the divested business. Revenues of the sold business had been included in “trust income” and were $9 million during the three months ended March 31, 2015; $8 million and $26 million during the three months and nine months ended September 30, 2014, respectively; and $34 million during the year ended December 31, 2014. After considering related expenses, net income attributable to the business that was sold was not material to the consolidated results of operations of the Company in any of those periods.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

Net income for M&T Bank Corporation (“M&T”) in the third quarter of 2015 was $280 million or $1.93 of diluted earnings per common share, compared with $275 million or $1.91 of diluted earnings per common share in the year-earlier quarter. During the second quarter of 2015, net income totaled $287 million or $1.98 of diluted earnings per common share. Basic earnings per common share were $1.94 in the recent quarter, compared with $1.92 in the third quarter of 2014 and $1.99 in the second quarter of 2015. For the first nine months of 2015, net income was $809 million or $5.56 of diluted earnings per common share, compared with $789 million or $5.50 of diluted earnings per common share during the similar period of 2014. Basic earnings per common share were $5.59 and $5.54 for the first nine months of 2015 and 2014, respectively.

The annualized rate of return on average total assets for M&T and its consolidated subsidiaries (“the Company”) in the recent quarter was 1.13%, compared with 1.17% in the third quarter of 2014 and 1.18% in the second quarter of 2015. The annualized rate of return on average common shareholders’ equity was 8.93% in the third quarter of 2015, compared with 9.18% and 9.37% in the year-earlier quarter and in 2015’s second quarter, respectively. During the nine-month period ended September 30, 2015, the annualized rates of return on average assets and average common shareholders’ equity were 1.11% and 8.77%, respectively, compared with 1.17% and 9.07%, respectively, in the first nine months of 2014.

Results for the second quarter of 2015 reflected two noteworthy items. In early April 2015, the Company sold the trade processing business within the retirement services division of its Institutional Client Services business. That sale resulted in an after-tax gain of approximately $23 million ($45 million pre-tax). Also during the second quarter of 2015, the Company made $40 million of tax-deductible cash contributions to The M&T Charitable Foundation. The after-tax impact of those two items lowered net income and diluted earnings per common share during each of the second quarter of 2015 and the nine month period ended September 30, 2015 by approximately $1 million and $.01.

On August 27, 2012, M&T announced that it had entered into a definitive agreement with Hudson City Bancorp, Inc. (“Hudson City”), headquartered in Paramus, New Jersey, under which Hudson City would be acquired by M&T. The merger has received the approval of the common shareholders of M&T and Hudson City. M&T announced on September 30, 2015 that it had received the approval of the Federal Reserve to acquire Hudson City and on October 9, 2015 M&T announced that it had received the approval of the New York State Department of Financial Services. The transaction is expected to be completed on or about November 1, 2015, pending the satisfaction of customary closing conditions.

Pursuant to the terms of the agreement, Hudson City common shareholders will receive consideration for each common share of Hudson City in an amount valued at .08403 of an M&T share in the form of either M&T common stock or cash, based on the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of 60% common stock of M&T and 40% cash). The estimated purchase price considering the closing price of M&T’s common stock of $121.95 on September 30, 2015 was $5.3 billion.

As of September 30, 2015, Hudson City had $35.1 billion of assets, including $19.2 billion of loans (predominantly residential real estate

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loans) and $7.9 billion of investment securities, and $30.3 billion of liabilities, including $17.9 billion of deposits.

Effective January 1, 2015, the Company elected to account for its investments in qualified affordable housing projects using the proportional amortization method as allowed by the Financial Accounting Standards Board (“FASB”). Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The adoption is required to be applied retrospectively. As a result, financial statements for periods prior to 2015 have been restated. The adoption did not have a significant effect on the Company’s consolidated financial position or results of operations, but the restatement of the consolidated statement of income for the three- and nine- month periods ended September 30, 2014 resulted in the removal of $14 million and $39 million, respectively, of losses associated with qualified affordable housing projects from “other costs of operations” and added the amortization of the initial cost of the investment of a similar amount to income tax expense. The similar restatement for the fourth quarter of 2014 also reflected approximately $14 million of amortization.

Recent Legislative and Regulatory Developments

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) that was signed into law on July 21, 2010 has and will continue to significantly change the bank regulatory structure and affect the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies, and the system of regulatory oversight of the Company. In addition, other reforms have been adopted or are being considered by other regulators and policy makers. As required by the Dodd-Frank Act, various federal regulatory agencies have proposed or adopted a broad range of implementing rules and regulations and have prepared numerous studies and reports for Congress. However, given that many of the new and proposed rules are highly complex, the full impact of regulatory reform will not be known until the rules are implemented and market practices develop under the final regulations.

A discussion of the provisions of the Dodd-Frank Act is included in Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2014.

The Company is subject to the Federal Reserve’s revised comprehensive risk-based capital and leverage framework for U.S. banking organizations (the “New Capital Rules”), subject to certain transitional provisions. These rules went into effect as to M&T on January 1, 2015. The New Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including M&T and M&T Bank, as compared to the U.S. general risk-based capital rules that were applicable to M&T and M&T Bank through December 31, 2014.

The New Capital Rules also preclude certain hybrid securities, such as trust preferred securities, from inclusion in bank holding companies’ Tier 1 capital, subject to phase-out in the case of bank holding companies, such as M&T, that had $15 billion or more in total consolidated assets as of December 31, 2009. As a result, beginning in 2015 25% of M&T’s trust preferred securities are includable in Tier 1 capital, and in 2016 and thereafter, none of M&T’s trust preferred securities will be includable in Tier 1 capital. Trust preferred securities no longer included in M&T’s Tier 1 capital may nonetheless be included as a component of Tier 2 capital on a permanent basis without phase-out and irrespective of whether such securities otherwise meet the revised definition of Tier 2 capital set forth in the New Capital Rules. On April 15, 2015, in accordance with its 2015 capital plan, M&T redeemed the junior subordinated debentures associated with $310 million of trust

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preferred securities of M&T Capital Trust I, II and III. A detailed discussion of the New Capital Rules is included in Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2014 under the heading “Capital Requirements.” A further discussion of the Company’s regulatory capital ratios is presented herein under the heading “Capital.”

The Company is also subject to the provisions of the Dodd-Frank Act commonly referred to as the “Volcker Rule” which became effective in July 2015 (subject to a conformance period, as applicable). Pursuant to the Volcker Rule, banking entities are generally prohibited from engaging in proprietary trading and owning or sponsoring private equity or hedge funds, which are “covered funds” under that rule. Under the Volcker Rule, the Company is now required to be in compliance with the prohibition on proprietary trading and covered funds established after December 31, 2013. The Federal Reserve extended the compliance period to July 21, 2016 for investments in and relationships with covered funds that existed prior to January 1, 2014. The Federal Reserve has indicated that it intends to further extend that compliance period to July 21, 2017.

The Company believes that it has not engaged in any significant amount of proprietary trading as defined in the Volcker Rule. A review of the Company’s investments was undertaken to determine if any meet the Volcker Rule’s definition of covered funds. Based on that review, the Company believes that any impact related to investments considered to be covered funds would not have a material effect on the Company’s consolidated financial condition or its results of operations. Nevertheless, the Company may be required to divest certain investments subject to the Volcker Rule by the end of the compliance period, as extended.

On September 3, 2014, various federal banking regulators adopted final rules (“Final LCR Rule”) implementing a U.S. version of the Basel Committee’s Liquidity Coverage Ratio requirement (“LCR”) including the modified version applicable to bank holding companies, including M&T, with $50 billion in total consolidated assets that are not “advanced approaches” institutions. The LCR is intended to ensure that banks hold a sufficient amount of “high quality liquid assets” (“HQLA”) to cover the anticipated net cash outflows during a hypothetical acute 30-day stress scenario. The LCR is the ratio of an institution’s amount of HQLA (the numerator) over projected net cash outflows over the 30-day period (the denominator), in each case, as calculated pursuant to the Final LCR Rule. Once fully phased-in, a subject institution must maintain an LCR equal to at least 100% in order to satisfy this regulatory requirement. Only specific classes of assets, including U.S. Treasury securities, other U.S. government obligations and agency mortgage-backed securities, qualify under the rule as HQLA, with classes of assets deemed relatively less liquid and/or subject to a greater degree of credit risk subject to certain haircuts and caps for purposes of calculating the numerator under the Final LCR Rule.

The initial compliance date for the modified LCR is January 1, 2016, with the requirement fully phased-in by January 1, 2017. The Company intends to comply with the LCR as it is phased in. A detailed discussion of the LCR and its requirements is included in Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2014 under the heading “Liquidity Ratios under Basel III.”

On June 17, 2013, M&T and M&T Bank, the principal bank subsidiary of M&T, entered into a written agreement with the Federal Reserve Bank of New York. Under the terms of the agreement, M&T and M&T Bank were required to submit to the Federal Reserve Bank of New York a revised compliance risk management program designed to ensure compliance with the Bank Secrecy Act and anti-money-laundering laws and regulations (“BSA/AML”) and to take certain other steps to enhance their compliance practices. M&T and M&T Bank

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have made significant progress towards implementing a program commensurate with the expanded scale and scope of the combined organization as recognized by the Board of Governors of the Federal Reserve System in its Order approving M&T and M&T Bank’s applications to acquire Hudson City and Hudson City Savings Bank. M&T and M&T Bank will continue to resolve all outstanding issues in the written agreement.

Supplemental Reporting of Non-GAAP Results of Operations

M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains and expenses, if any, associated with merging acquired operations into the Company, since such items are considered by management to be “nonoperating” in nature. As a result of business combinations and other acquisitions, the Company had intangible assets consisting of goodwill and core deposit and other intangible assets totaling $3.5 billion at September 30, 2015 and $3.6 billion at each of September 30, 2014 and December 31, 2014. Included in such intangible assets was goodwill of $3.5 billion at each of those dates. Amortization of core deposit and other intangible assets, after tax effect, totaled $3 million ($.02 per diluted common share) in the recent quarter and $4 million ($.03 per diluted common share) during each of the year-earlier quarter and the second quarter of 2015. For the nine-month periods ended September 30, 2015 and 2014, amortization of core deposit and other intangible assets, after tax effect, totaled $10 million ($.08 per diluted common share) and $16 million ($.12 per diluted common share), respectively. There were no merger-related expenses during the first nine months of 2015 or 2014. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

Net operating income was $283 million in the recent quarter, compared with $280 million in the third quarter of 2014. Diluted net operating earnings per common share for the third quarter of 2015 were $1.95, compared with $1.94 in the year-earlier quarter. Net operating income and diluted net operating earnings per common share were $290 million and $2.01, respectively, in the second quarter of 2015. For the first nine months of 2015, net operating income and diluted net operating earnings per common share were $819 million and $5.64, respectively, compared with $805 million and $5.62, respectively, in the corresponding 2014 period.

Net operating income in the recent quarter expressed as an annualized rate of return on average tangible assets was 1.18%, compared with 1.24% in each of the year-earlier quarter and second quarter of 2015. Net operating income represented an annualized return on average tangible common equity of 12.98% in the recently completed quarter, compared with 13.80% in the third quarter of 2014 and 13.76% in 2015’s second quarter. For the first nine months of 2015, net operating income represented an annualized return on average tangible assets and average tangible common shareholders’ equity of 1.17% and 12.89%, respectively, compared with 1.25% and 13.84%, respectively, in the similar period of 2014.

Reconciliations of GAAP amounts with corresponding non-GAAP amounts are provided in table 2.

Taxable-equivalent Net Interest Income

Taxable-equivalent net interest income totaled $699 million in the third quarter of 2015, 4% higher than $675 million in the year-earlier quarter. That improvement reflects the impact of a $5.7 billion or 7% rise in average earning

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assets that was partially offset by a 9 basis point (hundredths of one percent) narrowing of the Company’s net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, to 3.14% in the recent quarter. The increase in average earning assets was attributable to higher average balances of loans and leases of $3.1 billion, investment securities of $1.7 billion and interest-bearing deposits at banks of $977 million. Lower yields on average investment securities and average loans and leases outstanding contributed to the narrowing of the net interest margin. Taxable-equivalent net interest income increased 1% in the recent quarter from $689 million in the second quarter of 2015, largely due to one additional day in the recent quarter and growth in average loans outstanding of $179 million. The benefit from that growth and, to a lesser extent, growth in other earning assets was mitigated by a narrowing of the net interest margin in the recent quarter to 3.14% from 3.17% in the second quarter of 2015.

For the first nine months of 2015, taxable-equivalent net interest income was $2.05 billion, up 2% from $2.01 billion in the similar period of 2014. That increase was attributable to higher average earning assets, which rose $7.4 billion or 9% to $87.0 billion in the first nine months of 2015, offset in part by a 22 basis point narrowing of the net interest margin to 3.16% in 2015 from 3.38% in 2014. That narrowing reflected lower yields on average loans outstanding and the impact of additions to the investment securities portfolio that were predominantly funded through the issuance of long-term borrowings. Those securities were added to facilitate compliance with upcoming Liquidity Coverage Ratio requirements.

Average loans and leases totaled $67.8 billion in the recent quarter, an increase of 5% as compared with $64.8 billion in the third quarter of 2014. Commercial loans and leases averaged $19.9 billion in the third quarter of 2015, up $1.0 billion or 6% from $18.9 billion in the year-earlier quarter. Average commercial real estate loans aggregated $28.3 billion in the recent quarter, an increase of $1.8 billion, or 7%, from $26.5 billion in the third quarter of 2014. Average residential real estate loans outstanding declined $285 million to $8.3 billion in 2015’s third quarter from $8.6 billion in the year-earlier quarter. Included in that portfolio were loans originated for sale, which averaged $466 million in the recently completed quarter, compared with $424 million in the third quarter of 2014. Consumer loans averaged $11.3 billion in the recent quarter, $500 million or 5% higher than $10.8 billion in the third quarter of 2014. That growth reflects a $503 million increase in average automobile loan balances.

Average loan and lease balances in the recent quarter rose $179 million from the second quarter of 2015. Average commercial real estate loans increased $101 million from 2015’s second quarter and average balances of consumer loans rose $211 million, while average outstanding commercial loan and lease balances decreased $35 million and average residential real estate loans declined $98 million. Management has chosen not to replace run-off in the residential real estate loan portfolio in advance of the Hudson City merger, as its portfolio is almost entirely comprised of residential mortgage loans. The commercial loan and lease portfolio decrease reflected the usual seasonal slowdown in loans to automobile dealers to finance their floor plan inventory. The accompanying table summarizes quarterly changes in the major components of the loan and lease portfolio.

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AVERAGE LOANS AND LEASES

(net of unearned discount)

Dollars in millions

			Percent increase (decrease) from
	3rd Qtr. 2015		3rd Qtr. 2014			2nd Qtr. 2015
Commercial, financial, etc.	$	19,939		6	%		—	%
Real estate – commercial		28,309		7			—
Real estate – consumer		8,348		(3	)		(1	)
Consumer
Automobile		2,271		28			8
Home equity lines		5,620		(2	)		(1	)
Home equity loans		234		(23	)		(6	)
Other		3,128		7			3
Total consumer		11,253		5			2
Total	$	67,849		5	%		—	%

For the first nine months of 2015, average loans and leases aggregated $67.4 billion, up $3.1 billion or 5% from $64.3 billion in the corresponding 2014 period. The most significant factors contributing to that increase were growth in the commercial real estate and commercial loan and lease portfolios.

The investment securities portfolio averaged $14.4 billion in the recent quarter, up $1.7 billion or 13% from $12.8 billion in the third quarter of 2014 and $246 million or 2% above the $14.2 billion averaged in the second quarter of 2015. For the first nine months of 2015 and 2014, investment securities averaged $14.0 billion and $11.0 billion, respectively. Each of those increases from the respective prior periods reflects the net effect of purchases, partially offset by maturities and paydowns of mortgage-backed securities. The Company purchased approximately $4.6 billion of Fannie Mae securities and $602 million of Ginnie Mae securities that were added to the investment securities portfolio during 2014, and another $2.7 billion of Fannie Mae securities and $548 million of Ginnie Mae securities were purchased during the first nine months of 2015. Those purchases reflect increased holdings of investment securities to satisfy the requirements of the LCR that will become effective in January 2016.

The investment securities portfolio is largely comprised of residential mortgage-backed securities, debt securities issued by municipalities, trust preferred securities issued by certain financial institutions, and shorter-term U.S. Treasury and federal agency notes. When purchasing investment securities, the Company considers its liquidity position and its overall interest-rate risk profile as well as the adequacy of expected returns relative to the risks assumed, including prepayments. In managing its investment securities portfolio, the Company occasionally sells investment securities as a result of changes in interest rates and spreads, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio in connection with a business combination.

The Company regularly reviews its investment securities for declines in value below amortized cost that might be characterized as “other than temporary.” There were no other-than-temporary impairment charges recognized in either of the first nine months of 2015 or 2014. Additional information about the investment securities portfolio is included in notes 3 and 12 of Notes to Financial Statements.

Other earning assets include deposits at the Federal Reserve Bank of New York and other banks, trading account assets, federal funds sold and agreements to resell securities. Those other earning assets in the aggregate averaged $6.2 billion in the recent quarter, compared with $5.2 billion and $5.5 billion in the third quarter of 2014 and the second quarter of 2015, respectively.

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Interest-bearing deposits at banks are the largest component of those other earning assets and averaged $6.1 billion in the third quarter of 2015, compared with $5.1 billion in the year-earlier quarter and $5.3 billion in 2015’s second quarter. For the nine-month periods ended September 30, 2015 and 2014, average balances of other earning assets were $5.6 billion and $4.3 billion, respectively, including $5.5 billion and $4.1 billion, respectively, of interest-bearing deposits at banks. The amounts of investment securities and other earning assets held by the Company are influenced by such factors as demand for loans, which generally yield more than investment securities and other earning assets, liquidity requirements, ongoing repayments, the levels of deposits, and management of balance sheet size and resulting capital ratios.

As a result of the changes described herein, average earning assets aggregated $88.4 billion in the third quarter of 2015, compared with $82.8 billion in the year-earlier quarter and $87.3 billion in the second quarter of 2015. Average earning assets totaled $87.0 billion and $79.6 billion during the nine-month periods ended September 30, 2015 and 2014, respectively.

The most significant source of funding for the Company is core deposits. The Company considers noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and time deposits of $250,000 or less as core deposits. The Company’s branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Average core deposits totaled $72.0 billion in the third quarter of 2015, up 4% from $69.1 billion in the year-earlier quarter and 1% higher than $71.2 billion in the second quarter of 2015. The low interest rate environment in recent years has resulted in a shift in customer savings trends, as average time deposits have continued to decline. The growth in average core deposits from the year-earlier quarter reflects increases of approximately $1.2 billion in each of commercial customer deposits and trust demand deposits. When compared with the second quarter of 2015, average balances of commercial customer deposits were $1.1 billion higher in the recent quarter and trust demand deposits increased by $469 million. Those increases were partially offset by a $578 million seasonal decline in municipal deposits during the third quarter of 2015. The following table provides an analysis of quarterly changes in the components of average core deposits. For the nine-month periods ended September 30, 2015 and 2014, core deposits averaged $71.1 billion and $67.5 billion, respectively.

AVERAGE CORE DEPOSITS

Dollars in millions

			Percent increase (decrease) from
	3rd Qtr. 2015		3rd Qtr. 2014			2nd Qtr. 2015
NOW accounts	$	1,289		27	%		(1	)%
Savings deposits		40,049		—			(1	)
Time deposits		2,449		(15	)		(5	)
Noninterest-bearing deposits		28,251		12			6
Total	$	72,038		4	%		1	%

The Company has additional funding sources including branch-related time deposits over $250,000, deposits associated with the Company’s Cayman Islands office, and brokered deposits. Time deposits over $250,000 averaged $350 million in the third quarter of 2015, compared with $361 million and $353 million in the third quarter of 2014 and the second quarter of 2015, respectively. Cayman Islands office deposits averaged $206 million, $325 million and $212 million for the three-month periods ended September 30, 2015, September 30, 2014 and June 30, 2015, respectively. Brokered time deposits were not significant in the quarters ended September 30, 2015, September 30, 2014 or June 30, 2015. The Company has brokered NOW and brokered money-market deposit accounts, which in the aggregate averaged $1.2 billion during the recent quarter, compared with $1.0 billion and $1.1

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billion during the third quarter of 2014 and the second quarter of 2015, respectively. The levels of brokered deposit accounts reflect the demand for such deposits, largely resulting from the desire of brokerage firms to earn reasonable yields while ensuring that customer deposits are fully insured. The level of Cayman Islands office deposits is also reflective of customer demand. Additional amounts of Cayman Islands office deposits and brokered deposits may be added in the future depending on market conditions, including demand by customers and other investors for those deposits, and the cost of funds available from alternative sources at the time.

The Company also uses borrowings from banks, securities dealers, various Federal Home Loan Banks, the Federal Reserve Bank of New York and others as sources of funding. Average short-term borrowings totaled $174 million in the recent quarter, compared with $181 million in the third quarter of 2014 and $195 million in the second quarter of 2015. Short-term borrowings were largely comprised of unsecured federal funds borrowings, which generally mature on the next business day.

Long-term borrowings averaged $10.1 billion in the recent quarter, compared with $8.5 billion in the third quarter of 2014 and $10.2 billion in the second quarter of 2015. During 2013, M&T Bank initiated a Bank Note Program whereby M&T Bank may offer unsecured senior and subordinated notes. Average balances of the unsecured senior notes issued under that program were $5.5 billion during each of the two most recent quarters and $3.6 billion during the third quarter of 2014. During February 2015, M&T Bank issued $1.5 billion of senior notes of which $750 million mature in 2020 and $750 million mature in 2025. The proceeds from the issuances of borrowings under the Bank Note Program have been predominantly utilized to purchase high-quality liquid assets that will meet the requirements of the LCR. Also included in average long-term borrowings were amounts borrowed from the Federal Home Loan Banks of New York, Atlanta and Pittsburgh of $1.2 billion in each of the recent quarter, the third quarter of 2014 and the second quarter of 2015. Subordinated capital notes included in long-term borrowings averaged $1.5 billion in each of the two most recent quarters and $1.6 billion in the quarter ended September 30, 2014. Junior subordinated debentures associated with trust preferred securities that were included in average long-term borrowings were $513 million in the most recent quarter, compared with $834 million in the third quarter of 2014 and $562 million in the second quarter of 2015. In accordance with its 2015 capital plan, on April 15, 2015 M&T redeemed the junior subordinated debentures associated with the $310 million of trust preferred securities of M&T Capital Trusts I, II and III. Those borrowings had a weighted-average interest rate of 8.24%. Further information regarding junior subordinated debentures is provided in note 5 of Notes to Financial Statements. Also included in long-term borrowings were agreements to repurchase securities, which averaged $1.4 billion during each of the third quarters of 2015 and 2014 and the second quarter of 2015. The agreements have various repurchase dates through 2017, however, the contractual maturities of the underlying securities extend beyond such repurchase dates. The Company has utilized interest rate swap agreements to modify the repricing characteristics of certain components of long-term debt. As of September 30, 2015, interest rate swap agreements were used to hedge approximately $1.4 billion of outstanding fixed rate long-term borrowings. Further information on interest rate swap agreements is provided in note 10 of Notes to Financial Statements.

Changes in the composition of the Company’s earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads, can impact net interest income. Net interest spread, or the difference between the taxable-equivalent yield on earning assets and the rate paid on interest-bearing liabilities, was 2.93% in the third quarter of 2015, compared with 3.05% in the third quarter of 2014 and 2.97% in the second quarter of 2015. The yield on earning assets during the

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recent quarter was 3.48%, down 11 basis points from 3.59% in the year-earlier quarter, while the rate paid on interest-bearing liabilities increased 1 basis point to .55% from .54% in the third quarter of 2014. In the second quarter of 2015, the yield on earning assets was 3.52% and the rate paid on interest-bearing liabilities was .55%. For the first nine months of 2015, the net interest spread was 2.96%, down 23 basis points from the year-earlier period. The yield on earning assets and the rate paid on interest-bearing liabilities for the nine-month period ended September 30, 2015 were 3.51% and .55%, respectively, compared with 3.72% and .53%, respectively, in the first nine months of 2014. The narrowing of the net interest spread in the 2015 periods as compared with the three months and nine months ended September 30, 2014 reflects the higher level of deposits held at the Federal Reserve Bank of New York, higher average balances of investment securities and long-term borrowings, and the ongoing impact of the low interest rate environment on the yields earned on investment securities and loans.

Net interest-free funds consist largely of noninterest-bearing demand deposits and shareholders’ equity, partially offset by bank owned life insurance and non-earning assets, including goodwill and core deposit and other intangible assets. Net interest-free funds averaged $32.6 billion in the recent quarter, compared with $28.4 billion in the third quarter of 2014 and $30.8 billion in the second quarter of 2015. The increase in average net interest-free funds in the recent quarter as compared with the third quarter of 2014 was predominantly the result of higher average balances of noninterest-bearing deposits. Such deposits averaged $28.3 billion, $25.1 billion and $26.8 billion in the quarters ended September 30, 2015, September 30, 2014 and June 30, 2015, respectively. The growth in average noninterest-bearing deposits from the year-earlier quarter and the second quarter of 2015 reflects increases in commercial customer deposits of approximately $1.5 billion and $930 million, respectively, and trust demand deposits of approximately $1.2 billion and $469 million, respectively. During the first nine months of 2015 and 2014, average net interest-free funds were $30.9 billion and $28.0 billion, respectively. That increase was also reflective of higher average balances of noninterest-bearing deposits, which totaled $26.9 billion and $24.9 billion during the first nine months of 2015 and 2014, respectively. Goodwill and core deposit and other intangible assets averaged $3.5 billion during each of the two most recent quarters, compared with $3.6 billion in the quarter ended September 30, 2014. Goodwill was reduced by approximately $11 million during the second quarter of 2015 as a result of the previously noted sale of the Company’s trade processing business in that quarter. The cash surrender value of bank owned life insurance averaged $1.7 billion in each of the three-month periods ended September 30, 2015, September 30, 2014 and June 30, 2015. Increases in the cash surrender value of bank owned life insurance and benefits received are not included in interest income, but rather are recorded in “other revenues from operations.” The contribution of net interest-free funds to net interest margin was .21% in the recent quarter, compared with .18% in the third quarter of 2014 and .20% in the second quarter of 2015. That contribution for the first nine months of 2015 and 2014 was .20% and .19%, respectively.

Reflecting the changes to the net interest spread and the contribution of interest-free funds as described herein, the Company’s net interest margin was 3.14% in the recent quarter, compared with 3.23% in the third quarter of 2014 and 3.17% in the second quarter of 2015. During the nine-month periods ended September 30, 2015 and 2014, the net interest margin was 3.16% and 3.38%, respectively. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in reductions in spreads, could adversely impact the Company’s net interest income and net interest margin. In particular, the relatively low interest rate environment continues to exert downward pressure on yields on loans, investment

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securities and other earning assets.

Management assesses the potential impact of future changes in interest rates and spreads by projecting net interest income under several interest rate scenarios. In managing interest rate risk, the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its interest-bearing liabilities. Periodic settlement amounts arising from these agreements are reflected in the rates paid on interest-bearing liabilities. The notional amount of interest rate swap agreements entered into for interest rate risk management purposes was $1.4 billion at each of September 30, 2015, September 30, 2014 and June 30, 2015. Under the terms of those interest rate swap agreements, the Company received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Those interest rate swap agreements were designated as fair value hedges of certain fixed rate long-term borrowings.

In a fair value hedge, the fair value of the derivative (the interest rate swap agreement) and changes in the fair value of the hedged item are recorded in the Company’s consolidated balance sheet with the corresponding gain or loss recognized in current earnings. The difference between changes in the fair value of the interest rate swap agreements and the hedged items represents hedge ineffectiveness and is recorded in “other revenues from operations” in the Company’s consolidated statement of income. The amounts of hedge ineffectiveness recognized during the quarters ended September 30, 2015 and 2014 and the quarter ended June 30, 2015 were not material to the Company’s consolidated results of operations. The estimated aggregate fair value of interest rate swap agreements designated as fair value hedges represented gains of approximately $61 million at September 30, 2015, $76 million at September 30, 2014, $64 million at June 30, 2015 and $73 million at December 31, 2014. The fair values of such interest rate swap agreements were substantially offset by changes in the fair values of the hedged items. The changes in the fair values of the interest rate swap agreements and the hedged items primarily result from the effects of changing interest rates and spreads. The Company’s credit exposure as of September 30, 2015 with respect to the estimated fair value of interest rate swap agreements used for managing interest rate risk has been substantially mitigated through master netting arrangements with trading account interest rate contracts with the same counterparty as well as counterparty postings of $35 million of collateral with the Company.

The weighted-average rates to be received and paid under interest rate swap agreements currently in effect were 4.42% and 1.29%, respectively, at September 30, 2015. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes, the related effect on net interest income and margin, and the weighted-average interest rates paid or received on those swap agreements are presented in the accompanying table. Additional information about the Company’s use of interest rate swap agreements and other derivatives is included in note 10 of Notes to Financial Statements.

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INTEREST RATE SWAP AGREEMENTS

Dollars in thousands

	Three months ended September 30
	2015						2014
	Amount			Rate(a)			Amount			Rate(a)
Increase (decrease) in:
Interest income	$	—			—	%	$	—			—	%
Interest expense		(10,999	)		(.08	)		(11,227	)		(.08	)
Net interest income/margin	$	10,999			.05	%	$	11,227			.05	%
Average notional amount	$	1,400,000					$	1,547,826
Rate received (b)					4.42	%					4.00	%
Rate paid (b)					1.25	%					1.07	%
	Nine months ended September 30
	2015						2014
	Amount			Rate(a)			Amount			Rate(a)
Increase (decrease) in:
Interest income	$	—			—	%	$	—			—	%
Interest expense		(33,419	)		(.08	)		(33,783	)		(.09	)
Net interest income/margin	$	33,419			.06	%	$	33,783			.06	%
Average notional amount	$	1,400,000					$	1,457,143
Rate received (b)					4.42	%					4.25	%
Rate paid (b)					1.22	%					1.14	%

(a) Computed as an annualized percentage of average earning assets or interest-bearing liabilities.

(b) Weighted-average rate paid or received on interest rate swap agreements in effect during the period.

As a financial intermediary, the Company is exposed to various risks, including liquidity and market risk. Liquidity refers to the Company’s ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future obligations, including demands for loans and deposit withdrawals, funding operating costs, and other corporate purposes. Liquidity risk arises whenever the maturities of financial instruments included in assets and liabilities differ. M&T’s banking subsidiaries have access to additional funding sources through borrowings from the FHLB of New York, lines of credit with the Federal Reserve Bank of New York, the previously noted Bank Note Program, and other available borrowing facilities. The Company has, from time to time, issued subordinated capital notes to provide liquidity and enhance regulatory capital ratios. Such notes generally qualify under the Federal Reserve Board’s risk-based capital guidelines for inclusion in the Company’s capital. However, pursuant to the Dodd-Frank Act, junior subordinated debentures associated with trust preferred securities are being phased-out of the definition of Tier 1 capital. Effective January 1, 2015, 75% of such junior subordinated debentures are excluded from the Company’s Tier 1 capital, and beginning January 1, 2016, 100% will be excluded. The amounts excluded from Tier 1 capital are includable in total capital.

The Company has informal and sometimes reciprocal sources of funding available through various arrangements for unsecured short-term borrowings from a wide group of banks and other financial institutions. Short-term federal funds borrowings totaled $122 million, $114 million and $135 million at September 30, 2015, September 30, 2014 and December 31, 2014, respectively. In general, those borrowings were unsecured and matured on the

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next business day. In addition to satisfying customer demand, Cayman Islands office deposits may be used by the Company as an alternative to short-term borrowings. Cayman Islands office deposits totaled $206 million at September 30, 2015, $242 million at September 30, 2014 and $177 million at December 31, 2014. The Company has also benefited from the placement of brokered deposits. The Company has brokered NOW and brokered money-market deposit accounts which aggregated $1.2 billion at September 30, 2015, $1.0 billion at September 30, 2014 and $1.1 billion at December 31, 2014. Brokered time deposits were not a significant source of funding as of those dates.

The Company’s ability to obtain funding from these or other sources could be negatively impacted should the Company experience a substantial deterioration in its financial condition or its debt ratings, or should the availability of short-term funding become restricted due to a disruption in the financial markets. The Company attempts to quantify such credit-event risk by modeling scenarios that estimate the liquidity impact resulting from a short-term ratings downgrade over various grading levels. Such impact is estimated by attempting to measure the effect on available unsecured lines of credit, available capacity from secured borrowing sources and securitizable assets. In addition to deposits and borrowings, other sources of liquidity include maturities of investment securities and other earning assets, repayments of loans and investment securities, and cash generated from operations, such as fees collected for services.

Certain customers of the Company obtain financing through the issuance of variable rate demand bonds (“VRDBs”). The VRDBs are generally enhanced by letters of credit provided by M&T Bank. M&T Bank oftentimes acts as remarketing agent for the VRDBs and, at its discretion, may from time-to-time own some of the VRDBs while such instruments are remarketed. When this occurs, the VRDBs are classified as trading account assets in the Company’s consolidated balance sheet. Nevertheless, M&T Bank is not contractually obligated to purchase the VRDBs. The value of VRDBs in the Company’s trading account totaled $2 million at September 30, 2014, while there were no outstanding VRDBs in the Company’s trading account at September 30, 2015 or December 31, 2014. The total amount of VRDBs outstanding backed by M&T Bank letters of credit was $1.8 billion at September 30, 2015, compared with $1.7 billion at September 30, 2014 and $2.0 billion at December 31, 2014. M&T Bank also serves as remarketing agent for most of those bonds.

The Company enters into contractual obligations in the normal course of business which require future cash payments. Such obligations include, among others, payments related to deposits, borrowings, leases and other contractual commitments. Off-balance sheet commitments to customers may impact liquidity, including commitments to extend credit, standby letters of credit, commercial letters of credit, financial guarantees and indemnification contracts, and commitments to sell real estate loans. Because many of these commitments or contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. Further discussion of these commitments is provided in note 13 of Notes to Financial Statements.

M&T’s primary source of funds to pay for operating expenses, shareholder dividends and treasury stock repurchases has historically been the receipt of dividends from its banking subsidiaries, which are subject to various regulatory limitations. Dividends from any banking subsidiary to M&T are limited by the amount of earnings of the banking subsidiary in the current year and the two preceding years. For purposes of that test, at September 30, 2015 approximately $1.5 billion was available for payment of dividends to M&T from banking subsidiaries. Information regarding the long-term debt obligations of M&T is included in note 5 of Notes to Financial Statements.

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Management closely monitors the Company’s liquidity position on an ongoing basis for compliance with internal policies and believes that available sources of liquidity are adequate to meet funding needs anticipated in the normal course of business. Management does not anticipate engaging in any activities, either currently or in the long-term, for which adequate funding would not be available and would therefore result in a significant strain on liquidity at either M&T or its subsidiary banks. Banking regulators have finalized rules requiring a banking company to maintain a minimum amount of liquid assets to withstand a standardized supervisory liquidity stress scenario. The effective date for those rules for the Company is January 1, 2016, subject to a phase-in period. The Company has taken steps as noted herein to enhance its liquidity and will take further action, as necessary, to comply with the final regulations when they take effect.

Market risk is the risk of loss from adverse changes in the market prices and/or interest rates of the Company’s financial instruments. The primary market risk the Company is exposed to is interest rate risk. Interest rate risk arises from the Company’s core banking activities of lending and deposit-taking, because assets and liabilities reprice at different times and by different amounts as interest rates change. As a result, net interest income earned by the Company is subject to the effects of changing interest rates. The Company measures interest rate risk by calculating the variability of net interest income in future periods under various interest rate scenarios using projected balances for earning assets, interest-bearing liabilities and derivatives used to hedge interest rate risk. Management’s philosophy toward interest rate risk management is to limit the variability of net interest income. The balances of financial instruments used in the projections are based on expected growth from forecasted business opportunities, anticipated prepayments of loans and investment securities, and expected maturities of investment securities, loans and deposits. Management uses a “value of equity” model to supplement the modeling technique described above. Those supplemental analyses are based on discounted cash flows associated with on- and off-balance sheet financial instruments. Such analyses are modeled to reflect changes in interest rates and provide management with a long-term interest rate risk metric.

The Company’s Asset-Liability Committee, which includes members of senior management, monitors the sensitivity of the Company’s net interest income to changes in interest rates with the aid of a computer model that forecasts net interest income under different interest rate scenarios. In modeling changing interest rates, the Company considers different yield curve shapes that consider both parallel (that is, simultaneous changes in interest rates at each point on the yield curve) and non-parallel (that is, allowing interest rates at points on the yield curve to vary by different amounts) shifts in the yield curve. In utilizing the model, projections of net interest income calculated under the varying interest rate scenarios are compared to a base interest rate scenario that is reflective of current interest rates. The model considers the impact of ongoing lending and deposit-gathering activities, as well as interrelationships in the magnitude and timing of the repricing of financial instruments, including the effect of changing interest rates on expected prepayments and maturities. When deemed prudent, management has taken actions to mitigate exposure to interest rate risk through the use of on- or off-balance sheet financial instruments and intends to do so in the future. Possible actions include, but are not limited to, changes in the pricing of loan and deposit products, modifying the composition of earning assets and interest-bearing liabilities, and adding to, modifying or terminating existing interest rate swap agreements or other financial instruments used for interest rate risk management purposes.

The accompanying table as of September 30, 2015 and December 31, 2014 displays the estimated impact on net interest income from non-trading

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financial instruments in the base scenario described above resulting from parallel changes in interest rates across repricing categories during the first modeling year.

SENSITIVITY OF NET INTEREST INCOME

TO CHANGES IN INTEREST RATES

Dollars in thousands

	Calculated increase (decrease) in projected net interest income
Changes in interest rates	September 30, 2015			December 31, 2014
+200 basis points	$	276,710			246,028
+100 basis points		159,469			134,393
-100 basis points		(85,404	)		(74,634	)

The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income. The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments held for non-trading purposes, loan and deposit volumes and pricing, and deposit maturities. In the scenarios presented, the Company also assumed gradual increases in interest rates during a twelve-month period of 100 and 200 basis points, as compared with the assumed base scenario, as well as a gradual decrease of 100 basis points. In the second quarter of 2015, the Company suspended the -200 basis points scenario due to the persistent low level of interest rates. This scenario will be reinstated if and when interest rates rise sufficiently to make the analysis more meaningful. In the declining rate scenario, the rate changes may be limited to lesser amounts such that interest rates remain positive on all points of the yield curve. The assumptions used in interest rate sensitivity modeling are inherently uncertain and, as a result, the Company cannot precisely predict the impact of changes in interest rates on net interest income. Actual results may differ significantly from those presented due to the timing, magnitude and frequency of changes in interest rates and changes in market conditions and interest rate differentials (spreads) between maturity/repricing categories, as well as any actions, such as those previously described, which management may take to counter such changes.

Changes in fair value of the Company’s financial instruments can also result from a lack of trading activity for similar instruments in the financial markets. That impact is most notable on the values assigned to some of the Company’s investment securities. Information about the fair valuation of such securities is presented herein under the heading “Capital” and in notes 3 and 12 of Notes to Financial Statements.

The Company engages in limited trading account activities to meet the financial needs of customers and to fund the Company’s obligations under certain deferred compensation plans. Financial instruments utilized in trading account activities consist predominantly of interest rate contracts, such as swap agreements, and forward and futures contracts related to foreign currencies. The Company generally mitigates the foreign currency and interest rate risk associated with trading account activities by entering into offsetting positions that are also included in the trading account. The fair values of the offsetting trading account positions associated with interest rate contracts and foreign currency and other option and futures contracts are presented in note 10 of Notes to Financial Statements. The amounts of gross and net trading account positions, as well as the type of trading account activities conducted by the Company, are subject to a well-defined series of potential loss exposure limits established by management and approved by M&T’s Board of Directors. However, as with any non-government guaranteed financial instrument, the Company is exposed to credit risk associated with counterparties to the Company’s trading account activities.

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The notional amounts of interest rate contracts entered into for trading account purposes aggregated $17.6 billion at each of September 30, 2015 and December 31, 2014, compared with $17.2 billion at September 30, 2014. The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes totaled $1.6 billion, $1.0 billion and $1.3 billion at September 30, 2015, September 30, 2014 and December 31, 2014, respectively. Although the notional amounts of these contracts are not recorded in the consolidated balance sheet, the fair values of all financial instruments used for trading account activities are recorded in the consolidated balance sheet. The fair values of all trading account assets and liabilities totaled $341 million and $233 million, respectively, at September 30, 2015, $297 million and $182 million, respectively, at September 30, 2014, and $308 million and $203 million, respectively, at December 31, 2014. Included in trading account assets at September 30, 2015 were assets related to deferred compensation plans totaling $23 million, compared with $26 million at September 30, 2014 and $27 million at December 31, 2014. Changes in the fair values of such assets are recorded as “trading account and foreign exchange gains” in the consolidated statement of income. Included in “other liabilities” in the consolidated balance sheet at September 30, 2015 were $27 million of liabilities related to deferred compensation plans, compared with $30 million at each of September 30, 2014 and December 31, 2014. Changes in the balances of such liabilities due to the valuation of allocated investment options to which the liabilities are indexed are recorded in “other costs of operations” in the consolidated statement of income.

Given the Company’s policies, limits and positions, management believes that the potential loss exposure to the Company resulting from market risk associated with trading account activities was not material, however, as previously noted, the Company is exposed to credit risk associated with counterparties to transactions related to the Company’s trading account activities. Additional information about the Company’s use of derivative financial instruments in its trading account activities is included in note 10 of Notes to Financial Statements.

Provision for Credit Losses

The Company maintains an allowance for credit losses that in management’s judgment appropriately reflects losses inherent in the loan and lease portfolio. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. The provision for credit losses in the third quarter of 2015 was $44 million, compared with $29 million in the year-earlier quarter and $30 million in the second quarter of 2015. For the nine-month periods ended September 30, 2015 and 2014, the provision for credit losses was $112 million and $91 million, respectively. Net loan charge-offs were $40 million in the recent quarter, up from $28 million in the third quarter of 2014 and $21 million in the second quarter of 2015. The higher level of net loan charge-offs in 2015’s third quarter reflected an increase in net commercial loan and lease charge-offs to $22 million from $8 million in last year’s third quarter and $4 million in the second quarter of 2015. The largest individual charge-off in the recent quarter was $6 million related to a loan with a general contractor in the greater New York City region. No other individual charge-offs were greater than $3 million and there was no concentration of charge-offs in any particular region or industry. Net charge-offs as an annualized percentage of average loans and leases were .24% in the third quarter of 2015, compared with .17% and .13% in the third quarter of 2014 and the second quarter of 2015, respectively. Net charge-offs for the nine-month periods ended September 30 aggregated $98 million in 2015 and $89 million in 2014, representing an annualized rate of .19% of average loans and leases in each respective period. A summary of net charge-offs by loan type is presented in the accompanying table.

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NET CHARGE-OFFS

BY LOAN/LEASE TYPE

In thousands

	2015
	1st Qtr.		2nd Qtr.		3rd Qtr.		Year to-date
Commercial, financial, leasing, etc.	$	8,411		4,056		21,590		34,057
Real estate:
Commercial		6,094		2,429		84		8,607
Residential		2,129		2,071		2,143		6,343
Consumer		19,555		12,830		16,372		48,757
	$	36,189		21,386		40,189		97,764
	2014
	1st Qtr.		2nd Qtr.		3rd Qtr.		Year to-date
Commercial, financial, leasing, etc.	$	9,146		10,140		8,072		27,358
Real estate:
Commercial		289		1,322		399		2,010
Residential		5,822		2,701		1,695		10,218
Consumer		16,651		14,939		17,867		49,457
	$	31,908		29,102		28,033		89,043

Included in net charge-offs of consumer loans and leases were net charge-offs during the quarters ended September 30, 2015, September 30, 2014 and June 30, 2015, respectively, of: automobile loans of $2 million, $3 million and $2 million; recreational vehicle loans of $3 million, $2 million and $2 million; and home equity loans and lines of credit, including Alt-A second lien loans, of $3 million, $5 million and $3 million. Alt-A loans represent loans secured by residential real estate that at origination typically included some form of limited borrower documentation requirements as compared with more traditional loans. Loans in the Company’s Alt-A portfolio were originated by the Company prior to 2008.

Loans acquired in connection with acquisition transactions subsequent to 2008 were recorded at fair value with no carry-over of any previously recorded allowance for credit losses. Determining the fair value of the acquired loans required estimating cash flows expected to be collected on the loans and discounting those cash flows at then-current interest rates. The excess of expected cash flows over the carrying value of the loans is recognized as interest income over the lives of loans. The difference between contractually required payments and the cash flows expected to be collected is referred to as the nonaccretable balance and is not recorded on the consolidated balance sheet. The nonaccretable balance reflects estimated future credit losses and other contractually required payments that the Company does not expect to collect. The Company regularly evaluates the reasonableness of its cash flow projections. Any decreases to the expected cash flows require the Company to evaluate the need for an additional allowance for credit losses and could lead to charge-offs of acquired loan balances. Any significant increases in expected cash flows result in additional interest income to be recognized over the then-remaining lives of the loans. The carrying amount of loans obtained in acquisitions subsequent to 2008 was $2.0 billion, $2.9 billion and $2.6 billion at September 30, 2015, September 30, 2014 and December 31, 2014, respectively. The portion of the nonaccretable balance related to remaining principal losses as well as life-to-date principal losses charged against the nonaccretable balance as of

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September 30, 2015 and December 31, 2014 are presented in the accompanying table.

	Nonaccretable balance - principal
	Remaining balance				Life-to-date charges
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
	(in thousands)
Commercial, financing, leasing, etc.	$	18,300		19,589		78,613		78,736
Commercial real estate		54,530		70,261		263,524		276,681
Residential real estate		13,742		15,958		60,824		59,552
Consumer		25,684		29,582		80,216		77,819
Total	$	112,256		135,390		483,177		492,788

Nonaccrual loans totaled $787 million or 1.15% of total loans and leases outstanding at September 30, 2015, compared with $848 million or 1.29% at September 30, 2014, $799 million or 1.20% at December 31, 2014 and $797 million or 1.17% at June 30, 2015. The decline in nonaccrual loans at the most recent quarter-end as compared with September 30, 2014 was largely due to lower commercial real estate loans, including residential builder and developer and construction loans, and residential real estate loans, partially offset by an increase in commercial loans in nonaccrual status.

Accruing loans past due 90 days or more (excluding acquired loans) were $231 million, or .34% of total loans and leases at September 30, 2015, compared with $313 million or .48% at September 30, 2014, $245 million or .37% at December 31, 2014 and $239 million or .35% at June 30, 2015. Those loans included loans guaranteed by government-related entities of $194 million at September 30, 2015, $265 million at September 30, 2014, $218 million at December 31, 2014 and $207 million at June 30, 2015. Such guaranteed loans included one-to-four family residential real estate loans serviced by the Company that were repurchased to reduce servicing costs, including a requirement to advance principal and interest payments that had not been received from individual mortgagors. Despite the loans being purchased by the Company, the insurance or guarantee by the applicable government-related entity remains in force. The outstanding principal balances of the repurchased loans that are guaranteed by government-related entities totaled $182 million at September 30, 2015, $237 million at September 30, 2014, $196 million at December 31, 2014 and $195 million at June 30, 2015. The remaining accruing loans past due 90 days or more not guaranteed by government-related entities were loans considered to be with creditworthy borrowers that were in the process of collection or renewal. Acquired accruing loans past due 90 days or more are loans that could not be specifically identified as impaired as of the acquisition date, but were recorded at estimated fair value as of such date. Such loans totaled $81 million at September 30, 2015, compared with $132 million at September 30, 2014, $110 million at December 31, 2014 and $79 million at June 30, 2015.

Purchased impaired loans are loans obtained in acquisition transactions subsequent to 2008 that as of the acquisition date were specifically identified as displaying signs of credit deterioration and for which the Company did not expect to collect all outstanding principal and contractually required interest payments. Those loans were impaired at the date of acquisition, were recorded at estimated fair value and were generally delinquent in payments, but, in accordance with GAAP, the Company continues to accrue interest income on such loans based on the estimated expected cash flows associated with the loans. The carrying amount of such loans was $149 million at September 30, 2015, or .22% of total loans. Purchased impaired loans totaled $237 million and $198 million at September 30 and December 31, 2014, respectively. The declines in such loans from the respective 2014 dates were predominantly the result of payments received from customers.

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In an effort to assist borrowers, the Company modified the terms of select loans. If the borrower was experiencing financial difficulty and a concession was granted, the Company considers such modifications as troubled debt restructurings. Loan modifications included such actions as the extension of loan maturity dates and the lowering of interest rates and monthly payments. The objective of the modifications was to increase loan repayments by customers and thereby reduce net charge-offs. In accordance with GAAP, the modified loans are included in impaired loans for purposes of determining the level of the allowance for credit losses. Information about modifications of loans that are considered troubled debt restructurings is included in note 4 of Notes to Financial Statements.

Residential real estate loans modified under specified loss mitigation programs prescribed by government guarantors have not been included in renegotiated loans because the loan guarantee remains in full force and, accordingly, the Company has not granted a concession with respect to the ultimate collection of the original loan balance. Such loans aggregated $153 million, $142 million and $149 million at September 30, 2015, September 30, 2014 and December 31, 2014, respectively.

Nonaccrual commercial loans and leases totaled $224 million at September 30, 2015, $191 million at September 30, 2014, $177 million at December 31, 2014 and $210 million at June 30, 2015. The largest individual commercial loans placed in nonaccrual status during 2015 were $24 million with a multi-regional automobile rental agency and $19 million with a commercial maintenance services provider with operations in New Jersey and Pennsylvania. Commercial real estate loans classified as nonaccrual aggregated $235 million at September 30, 2015, $274 million a year earlier, $239 million at December 31, 2014 and $246 million at June 30, 2015. Included in those amounts were nonaccrual loans to residential homebuilders and developers of $46 million and $73 million at September 30, 2015 and September 30, 2014, respectively, $72 million at December 31, 2014 and $57 million at June 30, 2015. Information about the location of nonaccrual and charged-off loans to residential real estate builders and developers as of and for the three-month period ended September 30, 2015 is presented in the accompanying table.

RESIDENTIAL BUILDER AND DEVELOPER LOANS, NET OF UNEARNED DISCOUNT

	September 30, 2015							Quarter ended September 30, 2015
			Nonaccrual					Net charge-offs (recoveries)
	Outstanding balances(a)		Balances		Percent of outstanding balances			Balances			Annualized percent of average outstanding balances
	(dollars in thousands)
New York	$	646,045	$	4,711		.73	%	$	1,439			.77	%
Pennsylvania		146,223		26,668		18.24			(71	)		(.20	)
Mid-Atlantic		450,578		16,009		3.55			(135	)		(.12	)
Other		393,454		1,411		.36			—			—
Total	$	1,636,300	$	48,799		2.98	%	$	1,233			.29	%

(a) Includes approximately $22 million of loans not secured by real estate, of which approximately $3 million were in nonaccrual status.

Residential real estate loans classified as nonaccrual were $218 million at September 30, 2015, compared with $264 million at September 30, 2014, $258 million at December 31, 2014, and $233 million at June 30, 2015. Included in

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residential real estate loans classified as nonaccrual were Alt-A loans of $64 million at September 30, 2015, compared with $80 million at September 30, 2014, $78 million at December 31, 2014 and $68 million at June 30, 2015. Residential real estate loans past due 90 days or more and accruing interest (excluding acquired loans) totaled $194 million at September 30, 2015, compared with $264 million at September 30, 2014, $216 million at December 31, 2014 and $207 million at June 30, 2015. A substantial portion of such amounts related to loans guaranteed by government-related entities. Information about location of nonaccrual and charged-off residential real estate loans as of and for the quarter ended September 30, 2015 is presented in the accompanying table.

Nonaccrual consumer loans totaled $110 million and $119 million at September 30, 2015 and 2014, respectively, compared with $125 million at December 31, 2014 and $108 million at June 30, 2015. Included in nonaccrual consumer loans and leases at September 30, 2015, September 30, 2014, December 31, 2014 and June 30, 2015 were automobile loans of $14 million, $17 million, $18 million and $15 million, respectively; recreational vehicle loans of $8 million, $10 million, $11 million and $8 million, respectively; and outstanding balances of home equity loans and lines of credit, including junior lien Alt-A loans, of $78 million, $85 million, $89 million and $78 million, respectively. Information about the location of nonaccrual and charged-off home equity loans and lines of credit as of and for the quarter ended September 30, 2015 is presented in the accompanying table.

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SELECTED RESIDENTIAL REAL ESTATE-RELATED LOAN DATA

	September 30, 2015							Quarter ended September 30, 2015
			Nonaccrual					Net charge-offs (recoveries)
	Outstanding balances		Balances		Percent of outstanding balances			Balances			Annualized percent of average outstanding balances
	(dollars in thousands)
Residential mortgages:
New York	$	3,399,963	$	57,685		1.70	%	$	987			.11	%
Pennsylvania		1,071,686		16,266		1.52			512			.19
Mid-Atlantic		1,979,162		31,579		1.60			502			.10
Other		1,424,201		46,243		3.25			196			.05
Total	$	7,875,012	$	151,773		1.93	%	$	2,197			.11	%
Residential construction:
New York	$	7,248	$	168		2.31	%	$	29			1.55	%
Pennsylvania		3,734		776		20.79			2			.24
Mid-Atlantic		9,930		—		—			—			—
Other		12,254		637		5.20			13			.44
Total	$	33,166	$	1,581		4.77	%	$	44			.54	%
Alt-A first mortgages:
New York	$	52,605	$	16,358		31.10	%	$	109			.82	%
Pennsylvania		9,054		2,115		23.36			69			2.92
Mid-Atlantic		61,469		7,825		12.73			(381	)		(2.42	)
Other		179,756		38,053		21.17			105			.23
Total	$	302,884	$	64,351		21.25	%	$	(98	)		(.13	)%
Alt-A junior lien:
New York	$	941	$	19		1.98	%	$	—			—	%
Pennsylvania		348		34		9.83			—			—
Mid-Atlantic		2,492		113		4.52			—			—
Other		6,000		429		7.16			20			1.32
Total	$	9,781	$	595		6.08	%	$	20			.79	%
First lien home equity loans:
New York	$	14,245	$	3,600		25.27	%	$	(3	)		(.09	)%
Pennsylvania		46,369		3,006		6.48			98			.81
Mid-Atlantic		64,513		1,418		2.20			25			.15
Other		865		132		15.32			—			—
Total	$	125,992	$	8,156		6.47	%	$	120			.36	%
First lien home equity lines:
New York	$	1,339,394	$	13,844		1.03	%	$	744			.22	%
Pennsylvania		839,265		6,320		.75			310			.15
Mid-Atlantic		862,510		4,472		.52			190			.09
Other		35,114		1,401		3.99			—			—
Total	$	3,076,283	$	26,037		.85	%	$	1,244			.16	%
Junior lien home equity loans:
New York	$	12,750	$	3,291		25.81	%	$	36			1.10	%
Pennsylvania		16,141		748		4.63			29			.70
Mid-Atlantic		55,615		1,875		3.37			(9	)		(.07	)
Other		6,797		810		11.92			(6	)		(.32	)
Total	$	91,303	$	6,724		7.36	%	$	50			.21	%
Junior lien home equity lines:
New York	$	936,375	$	23,758		2.54	%	$	1,120			.47	%
Pennsylvania		381,831		3,703		.97			41			.04
Mid-Atlantic		1,156,670		7,283		.63			865			.30
Other		66,758		1,870		2.80			(87	)		(.52	)
Total	$	2,541,634	$	36,614		1.44	%	$	1,939			.30	%

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Real estate and other foreclosed assets were $66 million at September 30, 2015, compared with $68 million at September 30, 2014, and $64 million at each of December 31, 2014 and June 30, 2015. At September 30, 2015, foreclosed assets included $43 million of residential real estate properties.

A comparative summary of nonperforming assets and certain past due loan data and credit quality ratios is presented in the accompanying table.

NONPERFORMING ASSET AND PAST DUE, RENEGOTIATED AND IMPAIRED LOAN DATA

Dollars in thousands

	2015 Quarters									2014 Quarters
	Third			Second			First			Fourth			Third
Nonaccrual loans	$	787,098			797,146			790,586			799,151			847,784
Real estate and other foreclosed assets		66,144			63,734			62,578			63,635			67,629
Total nonperforming assets	$	853,242			860,880			853,164			862,786			915,413
Accruing loans past due 90 days or more(a)	$	231,465			238,568			236,621			245,020			312,990
Government guaranteed loans included in totals above:
Nonaccrual loans	$	48,955			58,259			60,508			69,095			68,586
Accruing loans past due 90 days or more		193,998			206,775			193,618			217,822			265,333
Renegotiated loans	$	189,639			197,145			198,911			202,633			209,099
Acquired accruing loans past due 90 days or more(b)	$	80,827			78,591			80,110			110,367			132,147
Purchased impaired loans(c):
Outstanding customer balance	$	278,979			312,507			335,079			369,080			429,915
Carrying amount		149,421			169,240			184,018			197,737			236,662
Nonaccrual loans to total loans and leases, net of unearned discount		1.15	%		1.17	%		1.18	%		1.20	%		1.29	%
Nonperforming assets to total net loans and leases and real estate and other foreclosed assets		1.24	%		1.26	%		1.27	%		1.29	%		1.39	%
Accruing loans past due 90 days or more (a) to total loans and leases, net of unearned discount		.34	%		.35	%		.35	%		.37	%		.48	%

(a) Excludes acquired loans. Predominantly residential mortgage loans.

(b) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(c) Accruing loans that were impaired at acquisition date and recorded at fair value.

Management determined the allowance for credit losses by performing ongoing evaluations of the loan and lease portfolio, including such factors as the differing economic risks associated with each loan category, the financial condition of specific borrowers, the economic environment in which borrowers

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operate, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any guarantees or indemnifications. Management evaluated the impact of changes in interest rates and overall economic conditions on the ability of borrowers to meet repayment obligations when quantifying the Company’s exposure to credit losses and the allowance for such losses as of each reporting date. Factors also considered by management when performing its assessment, in addition to general economic conditions and the other factors described above, included, but were not limited to: (i) the impact of residential real estate values on the Company’s portfolio of loans to residential real estate builders and developers and other loans secured by residential real estate; (ii) the concentrations of commercial real estate loans in the Company’s loan portfolio; (iii) the amount of commercial and industrial loans to businesses in areas of New York State outside of the New York City metropolitan area and in central Pennsylvania that have historically experienced less economic growth and vitality than the vast majority of other regions of the country; (iv) the repayment performance associated with the Company’s first and second lien loans secured by residential real estate; and (v) the size of the Company’s portfolio of loans to individual consumers, which historically have experienced higher net charge-offs as a percentage of loans outstanding than other loan types. The level of the allowance is adjusted based on the results of management’s analysis.

Management cautiously and conservatively evaluated the allowance for credit losses as of September 30, 2015 in light of: (i) residential real estate values and the level of delinquencies of loans secured by residential real estate; (ii) economic conditions in the markets served by the Company; (iii) continuing weakness in industrial employment in upstate New York and central Pennsylvania; (iv) the significant subjectivity involved in commercial real estate valuations; and (v) the amount of loan growth experienced by the Company. While there has been general improvement in economic conditions, concerns continue to exist about the strength and sustainability of such improvements; the troubled state of financial and credit markets, including the impact international economic conditions could have on the U.S. economy; Federal Reserve positioning of monetary policy; low levels of workforce participation; and continued stagnant population growth in the upstate New York and central Pennsylvania regions (approximately 60% of the Company’s loans are to customers in New York State and Pennsylvania).

The Company utilizes a loan grading system which is applied to all commercial loans and commercial real estate loans. Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan. Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. Criticized commercial loans and commercial real estate loans were $2.3 billion at each of September 30, 2015 and June 30, 2015, compared with $2.0 billion at September 30, 2014 and $1.8 billion at December 31, 2014. Increases in criticized loan balances since December 31, 2014 included approximately $251 million categorized as commercial real estate loans and $244 million as commercial loans. Approximately 98% of loan balances added to the criticized category during the first nine months of 2015 were less than 90 days past due and 96% had a current payment status. Given payment performance, amount of supporting collateral, and, in certain instances, the existence of loan guarantees, the incremental impact to the allowance for credit losses resulting from the increase to the criticized loan category was not material. The borrower industries most significantly impacting the higher level of criticized loans were investment real estate, services and

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manufacturing. The metropolitan New York City region was most affected by the increases. Loan officers with the support of loan review personnel in different geographic locations are responsible to review and reassign loan grades to pass and criticized loans based on their detailed knowledge of individual borrowers and their judgment of the impact on such borrowers resulting from changing conditions in their respective geographic regions. At least annually, updated financial information is obtained from commercial borrowers associated with pass grade loans and additional analysis is performed. On a quarterly basis, the Company’s centralized loan review department reviews all criticized commercial loans and commercial real estate loans greater than $1 million to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. For criticized nonaccrual loans, additional meetings are held with loan officers and their managers, workout specialists and senior management to discuss each of the relationships. In analyzing criticized loans, borrower-specific information is reviewed, including operating results, future cash flows, recent developments and the borrower’s outlook, and other pertinent data. The timing and extent of potential losses, considering collateral valuation and other factors, and the Company’s potential courses of action are reviewed. To the extent that these loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of classifying the loan as “criticized,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in value as determined by line of business and/or loan workout personnel in the respective geographic regions. Those adjustments are reviewed and assessed for reasonableness by the Company’s loan review department. Accordingly, for real estate collateral securing larger commercial loans and commercial real estate loans, estimated collateral values are based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs. With regard to residential real estate loans, the Company’s loss identification and estimation techniques make reference to loan performance and house price data in specific areas of the country where collateral that was securing the Company’s residential real estate loans was located. For residential real estate-related loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. That charge-off is based on recent indications of value from external parties that are generally obtained shortly after a loan is classified as nonaccrual. At September 30, 2015, approximately 55% of the Company’s home equity portfolio consisted of first lien loans and lines of credit. Of the remaining junior lien loans in the portfolio, approximately 73% (or approximately 33% of the aggregate home equity portfolio) consisted of junior lien loans that were behind a first lien mortgage loan that was not owned or serviced by the Company. To the extent known by the Company, if a senior lien loan would be on nonaccrual status because of payment delinquency, even if such senior lien loan was not owned by the Company, the junior lien loan or line that is owned by the Company is placed on nonaccrual status. At September 30, 2015, the balance of junior lien loans and lines that were in nonaccrual status solely as a result of first lien loan performance was $22 million, compared with $26 million at September 30, 2014, $24 million at December 31, 2014 and $22 million at June 30, 2015. In monitoring the credit quality of its home equity portfolio for purposes of determining the allowance for credit losses, the Company reviews delinquency and nonaccrual information and considers recent charge-off experience. Additionally, the Company generally

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evaluates home equity loans and lines of credit that are more than 150 days past due for collectibility on a loan-by-loan basis and the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off at that time. In determining the amount of such charge-offs, if the Company does not know the amount of the remaining first lien mortgage loan (typically because the Company does not own or service the first lien loan), the Company assumes that the first lien mortgage loan has had no principal amortization since the origination of the junior lien loan. Similarly, data used in estimating incurred losses for purposes of determining the allowance for credit losses also assumes no reductions in outstanding principal of first lien loans since the origination of the junior lien loan. Home equity line of credit terms vary but such lines are generally originated with an open draw period of ten years followed by an amortization period of up to twenty years. At September 30, 2015, approximately 88% of all outstanding balances of home equity lines of credit related to lines that were still in the draw period, the weighted-average remaining draw periods were approximately five years, and approximately 10% were making contractually allowed payments that do not include any repayment of principal.

Factors that influence the Company’s credit loss experience include overall economic conditions affecting businesses and consumers, generally, but also residential and commercial real estate valuations, in particular, given the size of the Company’s real estate loan portfolios. Commercial real estate valuations can be highly subjective, as they are based upon many assumptions. Such valuations can be significantly affected over relatively short periods of time by changes in business climate, economic conditions, interest rates and, in many cases, the results of operations of businesses and other occupants of the real property. Similarly, residential real estate valuations can be impacted by housing trends, the availability of financing at reasonable interest rates, and general economic conditions affecting consumers.

In determining the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and detailed or intensified credit review processes and also estimates losses inherent in other loans and leases. In quantifying incurred losses, the Company considers the factors and uses the techniques described herein and in note 4 of Notes to Financial Statements. For purposes of determining the level of the allowance for credit losses, the Company segments its loan and lease portfolio by loan type. The amount of specific loss components in the Company’s loan and lease portfolios is determined through a loan-by-loan analysis of commercial loans and commercial real estate loans in nonaccrual status. Measurement of the specific loss components is typically based on expected future cash flows, collateral values or other factors that may impact the borrower’s ability to pay. Losses associated with residential real estate loans and consumer loans are generally determined by reference to recent charge-off history and are evaluated (and adjusted if deemed appropriate) through consideration of other factors including near-term forecasted loss estimates developed by the Company’s credit department. These forecasts give consideration to overall borrower repayment performance and current geographic region changes in collateral values using third party published historical price indices or automated valuation methodologies. With regard to collateral values, the realizability of such values by the Company contemplates repayment of any first lien position prior to recovering amounts on a junior lien position. Approximately 45% of the Company’s home equity portfolio consists of junior lien loans and lines of credit. Except for consumer loans and residential real estate loans that are considered smaller balance homogeneous loans and are evaluated collectively and loans obtained in acquisition transactions, the Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more and has been placed in nonaccrual status. Those impaired loans are evaluated for specific loss components. Modified loans,

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including smaller balance homogenous loans, that are considered to be troubled debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows. Loans less than 90 days delinquent are deemed to have a minimal delay in payment and are generally not considered to be impaired. Loans acquired in connection with acquisition transactions subsequent to 2008 were recorded at fair value with no carry-over of any previously recorded allowance for credit losses. Determining the fair value of the acquired loans required estimating cash flows expected to be collected on the loans and discounting those cash flows at then-current interest rates. The impact of estimated future credit losses represents the predominant difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition. Subsequent decreases to those expected cash flows require the Company to evaluate the need for an additional allowance for credit losses and could lead to charge-offs of acquired loan balances. Additional information regarding the Company’s process for determining the allowance for credit losses is included in note 4 of Notes to Financial Statements.

Management believes that the allowance for credit losses at September 30, 2015 appropriately reflected credit losses inherent in the portfolio as of that date. The allowance for credit losses was $934 million, or 1.36% of total loans and leases at September 30, 2015, compared with $919 million or 1.40% at September 30, 2014, $920 million or 1.38% at December 31, 2014 and $930 million or 1.36% at June 30, 2015. The ratio of the allowance to total loans and leases at each respective date reflects the impact of loans obtained in acquisition transactions subsequent to 2008 that have been recorded at estimated fair value based on estimated future cash flows expected to be received on those loans. Those cash flows reflect the impact of expected defaults on customer repayment performance. As noted earlier, GAAP prohibits any carry-over of an allowance for credit losses for acquired loans recorded at fair value. The level of the allowance reflects management’s evaluation of the loan and lease portfolio using the methodology and considering the factors as described herein. Should the various credit factors considered by management in establishing the allowance for credit losses change and should management’s assessment of losses inherent in the loan portfolio also change, the level of the allowance as a percentage of loans could increase or decrease in future periods. The ratio of the allowance for credit losses to nonaccrual loans was 119% at September 30, 2015, compared with 108% at September 30, 2014, 115% at December 31, 2014 and 117% at June 30, 2015. Given the Company’s general position as a secured lender and its practice of charging off loan balances when collection is deemed doubtful, that ratio and changes in that ratio are generally not an indicative measure of the adequacy of the Company’s allowance for credit losses, nor does management rely upon that ratio in determining the allowance. The level of the allowance reflects management’s evaluation of the loan and lease portfolio as of each respective date.

Other Income

Other income totaled $440 million in the third quarter of 2015, compared with $451 million in the year-earlier quarter and $497 million in the second quarter of 2015. Reflected in other income in the second quarter of 2015 was a $45 million gain from the divestiture of the trade processing business within the retirement services business of the Company. Excluding that gain, other income totaled $452 million in the second quarter of 2015. The decline in the recent quarter as compared with the year-earlier quarter resulted predominantly from lower mortgage banking revenues and trust income, partially offset by higher gains on the sale of previously leased equipment. The lower trust income reflects the impact of the divested trade processing business. As compared with the second quarter of 2015, lower mortgage banking revenues and loan syndication fees were partially offset by higher gains on the sale of previously leased equipment.

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Mortgage banking revenues were $84 million in the recently completed quarter, compared with $94 million in the third quarter of 2014 and $103 million in the second quarter of 2015. Mortgage banking revenues are comprised of both residential and commercial mortgage banking activities. The Company’s involvement in commercial mortgage banking activities includes the origination, sales and servicing of loans under the multifamily loan programs of Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development.

Residential mortgage banking revenues, consisting of realized gains from sales of residential real estate loans and loan servicing rights, unrealized gains and losses on residential real estate loans held for sale and related commitments, residential real estate loan servicing fees, and other residential real estate loan-related fees and income, were $67 million in the third quarter of 2015, compared with $73 million in the third quarter of 2014 and $75 million in the second quarter of 2015. The lower level of residential mortgage banking revenues in the recent quarter as compared with the year-earlier quarter and 2015’s second quarter reflects a decline in revenues associated with servicing residential real estate loans for others and lower realized and unrealized gains.

New commitments to originate residential real estate loans to be sold were approximately $870 million in the recent quarter, compared with $878 million and $995 million in the third quarter of 2014 and the second quarter of 2015, respectively. Realized gains from sales of residential real estate loans and loan servicing rights and recognized net unrealized gains and losses attributable to residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans totaled to gains of $18 million in the recently completed quarter, compared with gains of $19 million and $21 million in the third quarter of 2014 and the second quarter of 2015, respectively.

The Company is contractually obligated to repurchase previously sold loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues for losses related to its obligations to loan purchasers. The amount of those charges varies based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. Residential mortgage banking revenues were reduced for such obligations by $1 million during each of the recent quarter, the third quarter of 2014 and the second quarter of 2015.

Loans held for sale that were secured by residential real estate totaled $422 million at September 30, 2015, $466 million at September 30, 2014 and $435 million at December 31, 2014. Commitments to sell residential real estate loans and commitments to originate residential real estate loans for sale at pre-determined rates were $817 million and $587 million, respectively, at September 30, 2015, $827 million and $557 million, respectively, at September 30, 2014 and $717 million and $432 million, respectively, at December 31, 2014. Net recognized unrealized gains on residential real estate loans held for sale, commitments to sell loans, and commitments to originate loans for sale were $18 million at September 30, 2015, $20 million at September 30, 2014 and $19 million at December 31, 2014. Changes in such net unrealized gains are recorded in mortgage banking revenues and resulted in net decreases in revenues of less than $1 million in the recent quarter and $2 million in the second quarter of 2015, compared with a net increase in revenues of less than $1 million in the third quarter of 2014.

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Revenues from servicing residential real estate loans for others were $49 million in the recent quarter, compared with $54 million in the third quarter of 2014 and $53 million in the second quarter of 2015. The decline in the recent quarter as compared with the earlier quarters is largely reflective of lower sub-servicing activities. Revenues earned for sub-servicing loans were $26 million for the three-month period ended September 30, 2015, compared with $30 million for each of the three-month periods ended September 30, 2014 and June 30, 2015. Residential real estate loans serviced for others totaled $64.3 billion at September 30, 2015, $69.7 billion at September 30, 2014, $67.2 billion at December 31, 2014 and $66.5 billion at June 30, 2015. Reflected in residential real estate loans serviced for others were loans sub-serviced for others of $40.2 billion at September 30, 2015, $44.4 billion at September 30, 2014, $42.1 billion at December 31, 2014 and $42.3 billion at June 30, 2015. The contractual servicing rights associated with loans sub-serviced by the Company were predominantly held by affiliates of Bayview Lending Group LLC (“BLG”).

Capitalized servicing rights consist largely of servicing associated with loans sold by the Company. Capitalized residential mortgage loan servicing assets totaled $117 million at September 30, 2015, compared with $114 million at September 30, 2014 and $111 million at December 31, 2014.

Commercial mortgage banking revenues were $18 million in the third quarter of 2015, compared with $20 million in the year-earlier period and $28 million in the second quarter of 2015. Included in such amounts were revenues from loan origination and sales activities of $8 million in the recent quarter, compared with $11 million in the third quarter of 2014 and $17 million in the second quarter of 2015. The decline in such revenues was due to lower origination volume as commitments to purchase multi-family commercial real estate loans by Fannie Mae and Freddie Mac slowed from the first half of the year. Commercial real estate loans originated for sale to other investors totaled $190 million in the recent quarter, compared with $513 million and $890 million in the third quarter of 2014 and the second quarter of 2015, respectively. Loan servicing revenues were $10 million in the recent quarter, compared with $9 million in the year-earlier quarter and $11 million in the second quarter of 2015. Capitalized commercial mortgage servicing assets totaled $81 million at September 30, 2015 and $73 million at each of September 30 and December 31, 2014. Commercial real estate loans serviced for other investors totaled $11.6 billion at September 30, 2015 and $11.3 billion at each of September 30, 2014 and December 31, 2014, and included $2.5 billion, $2.3 billion and $2.4 billion, respectively, of loan balances for which investors had recourse to the Company if such balances are ultimately uncollectible. Commitments to sell commercial real estate loans and commitments to originate commercial real estate loans for sale were $161 million and $89 million, respectively, at September 30, 2015, $300 million and $141 million, respectively, at September 30, 2014 and $520 million and $212 million, respectively, at December 31, 2014. Commercial real estate loans held for sale at September 30, 2015, September 30, 2014 and December 31, 2014 were $71 million, $159 million and $308 million, respectively.

Service charges on deposit accounts totaled $107 million in the third quarter of 2015, compared with $110 million in the year-earlier quarter and $105 million in the second quarter of 2015. The lower levels of fees in the two most recent quarters as compared with the third quarter of 2014 were largely due to lower consumer deposit service fees, particularly overdraft fees.

Trust income includes fees related to two significant businesses. The Institutional Client Services (“ICS”) business provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients who: (i) use capital markets

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financing structures; (ii) use independent trustees to hold retirement plan and other assets; and (iii) need investment and cash management services. The Wealth Advisory Services (“WAS”) business helps high net worth clients grow their wealth, protect it, and transfer it to their heirs. A comprehensive array of wealth management services are offered, including asset management, fiduciary services and family office services. Revenues associated with the ICS business were approximately $53 million, $63 million and $52 million during the quarters ended September 30, 2015, September 30, 2014 and June 30, 2015, respectively. The ICS revenue decline in the two most recent quarters as compared with the third quarter of 2014 reflects the April 2015 divestiture of the trade processing business within the retirement services division. Revenues associated with the trade processing business totaled $8 million during the quarter ended September 30, 2014 and $9 million during the first quarter of 2015. After consideration of operating expenses, the net income of the sold business was not material to the Company’s consolidated results of operations in any period noted herein. Revenues attributable to WAS were approximately $53 million, $56 million and $58 million for the three-month periods ended September 30, 2015, September 30, 2014 and June 30, 2015, respectively. The second quarter of 2015 included $3 million of seasonal tax preparation fees. The decline in revenue in the recent quarter when compared to last year’s third quarter and the remainder of the decline from the second quarter of 2015 was attributable to lower values of managed assets, due in part to the recent stock market decline. In total, trust income aggregated $114 million in the third quarter of 2015, compared with $129 million and $119 million in the year-earlier quarter and the second quarter of 2015, respectively. Total trust assets, which include assets under management and assets under administration, aggregated $200.0 billion at September 30, 2015, compared with $276.6 billion at September 30, 2014, $287.9 billion at December 31, 2014 and $205.0 billion at June 30, 2015. The decline in trust assets at the two most recent quarter-ends was predominantly due to the customer account balances included in the April 2015 sale of the trade processing business. Trust assets under management were $65.7 billion, $67.7 billion and $68.2 billion at September 30, 2015, September 30, 2014 and December 31, 2014, respectively. The Company’s proprietary mutual funds had assets of $11.7 billion, $12.4 billion and $13.3 billion at September 30, 2015, September 30, 2014 and December 31, 2014, respectively.

Brokerage services income, which includes revenues from the sale of mutual funds and annuities and securities brokerage fees, totaled $17 million in each of the third quarters of 2015 and 2014 and the second quarter of 2015. Gains from trading account and foreign exchange activity were $8 million during the most recent quarter, $7 million during the year-earlier quarter and $6 million in the second quarter of 2015. Information about the notional amount of interest rate, foreign exchange and other contracts entered into by the Company for trading account purposes is included in note 10 of Notes to Financial Statements and herein under the heading “Taxable-equivalent Net Interest Income.”

M&T’s share of the operating losses of BLG was $4 million in each of the recent quarter and in 2014’s third quarter and $3 million in the second quarter of 2015. The operating losses of BLG in the respective quarters reflect provisions for losses associated with securitized loans and other loans held by BLG and loan servicing and other administrative costs. Under GAAP, such losses are required to be recognized by BLG despite the fact that many of the securitized loan losses will ultimately be borne by the underlying third party bondholders. As these loan losses are realized through later foreclosure and still later sale of real estate collateral, the underlying bonds will be charged-down leading to BLG’s future recognition of debt extinguishment gains. The timing of such debt extinguishment is difficult to predict and given ongoing loan loss provisioning, it is not possible to project when BLG will return to profitability. As a result of

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credit and liquidity disruptions, BLG ceased its originations of small-balance commercial real estate loans in 2008. However, as a result of past securitization activities, BLG is entitled to cash flows from mortgage assets that it owns or that are owned by its affiliates and is also entitled to receive distributions from affiliates that provide asset management and other services. Accordingly, the Company believes that BLG is capable of realizing positive cash flows that could be available for distribution to its owners, including M&T, despite a lack of positive GAAP-earnings from its core mortgage activities. Information about the Company’s relationship with BLG and its affiliates is included in note 15 of Notes to Financial Statements.

Other revenues from operations totaled $113 million in the recent quarter, compared with $99 million in the third quarter of 2014 and $151 million in the second quarter of 2015. The increase in other revenues from operations in the recent quarter when compared with the year-earlier quarter was primarily due to $14 million of gains on the sale of previously leased equipment in the third quarter of 2015. Similar gains in the year-earlier period were less than $1 million. The recent quarter decline in other revenues from operations as compared with the second quarter of 2015 was predominantly due to the $45 million gain associated with the sale of the trade processing business in the retirement services division. Included in other revenues from operations were the following significant components. Letter of credit and other credit-related fees (including loan syndication fees) totaled $29 million in each of the third quarters of 2015 and 2014, compared with $37 million in the second quarter of 2015. Tax-exempt income from bank owned life insurance, which includes increases in the cash surrender value of life insurance policies and benefits received, aggregated $12 million in the third quarter of 2015, $13 million in the third quarter of 2014 and $15 million in the second quarter of 2015. Revenues from merchant discount and credit card fees were $27 million in the recent quarter, compared with $25 million in the year-earlier quarter and $26 million in the second quarter of 2015. Insurance-related sales commissions and other revenues totaled $9 million in the third quarter of 2015, $10 million in last year’s third quarter and $8 million in the second quarter of 2015.

Other income totaled $1.38 billion in the first nine months of 2015, compared with $1.33 billion in the corresponding 2014 period. Excluding the gain on the divestiture of the trade processing business, other income aggregated $1.33 billion in the first nine months of 2015. On that basis, higher mortgage banking revenues and gains on the sale of previously leased equipment were predominantly offset by lower trust income, reflecting the sale of the trade processing business, and lower service charges on deposit accounts.

Mortgage banking revenues were $288 million for the nine-month period ended September 30, 2015, up 7% from $269 million in the year-earlier period. Residential mortgage banking revenues rose 2% to $220 million during the first nine months of 2015 from $216 million in the similar 2014 period. New commitments to originate residential real estate loans to be sold were $2.8 billion and $2.5 billion during the first nine months of 2015 and 2014, respectively. Realized gains from sales of residential real estate loans and loan servicing rights (net of the impact of costs associated with obligations to repurchase real estate loans originated for sale) and recognized unrealized gains and losses on residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans totaled to gains of $60 million and $61 million during the nine-month periods ended September 30, 2015 and 2014, respectively. Residential mortgage banking revenues during the nine-month periods ended September 30, 2015 and 2014 were reduced by $4 million and $3 million, respectively, related to actual or anticipated settlements of repurchase obligations. Revenues from servicing residential mortgage loans for others were $160 million and $155 million for the first nine months of 2015 and 2014, respectively. That increase reflects

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higher sub-servicing revenues that totaled $91 million and $83 million in the 2015 and 2014 periods, respectively. Commercial mortgage banking revenues totaled $68 million and $53 million during the nine-month periods ended September 30, 2015 and 2014, respectively. That increase reflects higher revenues from loan origination and sales activities of $11 million and from loan servicing of $4 million. Commercial real estate loans originated for sale to others were $1.5 billion in the first nine months of 2015, compared with $1.1 billion in the comparable 2014 period.

Service charges on deposit accounts totaled $315 million and $322 million during the first nine months of 2015 and 2014, respectively. That decline resulted predominantly from lower consumer service charges, largely overdraft fees. Trust income aggregated $356 million during the nine-month period ended September 30, 2015, compared with $380 million a year earlier. That decline was largely attributable to $26 million of revenues in the first nine months of 2014 associated with the trade processing business that was sold in April 2015, compared with $9 million of similar revenues in the first quarter of 2015. Brokerage services income totaled $49 million during the first nine months of 2015, compared with $51 million in the year-earlier period. Trading account and foreign exchange activity resulted in gains of $21 million for each of the nine-month periods ended September 30, 2015 and 2014. M&T’s investment in BLG resulted in the recognition of losses of $11 million for the nine months ended September 30, 2015, compared with losses of $13 million in the year-earlier period.

Other revenues from operations were $359 million in the nine-month period ended September 30, 2015, compared with $297 million in the similar year-earlier period. That increase reflects the $45 million gain from the sale of the trade processing business and $15 million of gains from the sale of previously leased equipment. Similar gains were not significant during the first nine months of 2014. Also included in other revenues from operations during the nine-month periods ended September 30, 2015 and 2014 were the following significant components. Letter of credit and other credit-related fees totaled $92 million in 2015 and $96 million in 2014. Income from bank owned life insurance was $38 million and $37 million in 2015 and 2014, respectively. Merchant discount and credit card fees aggregated $77 million in 2015 and $70 million in 2014. Insurance-related sales commissions and other revenues were $29 million and $33 million in the first nine months of 2015 and 2014, respectively.

Other Expense

Effective January 1, 2015, M&T adopted amended guidance from the FASB for accounting for investments in qualified affordable housing projects under which the initial cost of such investments is amortized to income tax expense in proportion to the tax benefit received. The adoption of this accounting guidance did not have a significant effect on the Company’s consolidated financial position or results of operations, but did result in the restatement of the consolidated financial statements for 2014 and earlier years to remove net costs associated with qualified affordable housing projects from other expense and include the amortization of the investments in income tax expense. As a result, the amortization included in income tax expense was $10 million and $31 million in the three- and nine-month periods ended September 30, 2015, respectively, and $14 million and $39 million in the three- and nine-month periods ended September 30, 2014, respectively. Similarly, losses removed from other costs of operations and amortization amounts now included in income tax expense were $14 million in the fourth quarter of 2014.

Reflecting the application of the new accounting guidance, other expense aggregated $654 million in the third quarter of 2015, down from $665 million in the year-earlier period and $697 million in 2015’s second quarter.

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Included in those amounts are expenses considered by management to be “nonoperating” in nature consisting of amortization of core deposit and other intangible assets of $4 million and $7 million in the third quarters of 2015 and 2014, respectively, and $6 million in the second quarter of 2015. There were no merger-related expenses during those respective quarters. Exclusive of these nonoperating expenses, noninterest operating expenses were $650 million in the most recent quarter, compared with $658 million in the year-earlier quarter and $691 million in the second quarter of 2015. Reflected in operating expenses were contributions to The M&T Charitable Foundation of $40 million in the second quarter of 2015. There were no similar contributions in the recent quarter. Also reflected in the decline in noninterest operating expense in the recent quarter as compared with the year-earlier quarter were lower costs for professional services, partially offset by higher salaries and employee benefits expense.

Other expense for the first nine months of 2015 aggregated $2.04 billion, up $14 million or 1% from $2.02 billion in the year-earlier period. Included in those amounts are expenses considered to be “nonoperating” in nature consisting of amortization of core deposit and other intangible assets of $17 million in 2015 and $27 million in 2014. There were no merger-related expenses during those respective periods. Exclusive of these nonoperating expenses, noninterest operating expenses through the first nine months of 2015 increased $23 million or 1% from the corresponding 2014 period. The most significant factors contributing to that increase were higher costs for salaries and employee benefits and charitable contributions, partially offset by lower professional services costs and FDIC assessments. Table 2 provides a reconciliation of other expense to noninterest operating expense.

Salaries and employee benefits expense totaled $364 million in the recent quarter, compared with $349 million in the third quarter of 2014 and $362 million in the second quarter of 2015. For the first three quarters of 2015, salaries and employee benefits expense totaled $1.12 billion, up 5% from $1.06 billion in the year-earlier period. As compared with the 2014 periods, the three months and nine months ended September 30, 2015 reflect the impact of annual merit increases for employees and higher pension expense. Higher incentive compensation costs also contributed to the increased salaries and benefits expense in the nine-month period ended September 30, 2015 as compared with the similar 2014 period. The increased pension expense in the 2015 periods was predominantly attributable to an increase in the amortization of unrecognized actuarial losses. Cumulative unrecognized actuarial losses increased from $191 million at December 31, 2013 to $512 million at December 31, 2014 due predominantly to a 75 basis point reduction in the discount rate and revised mortality tables released in 2014 by the Society of Actuaries used to determine the pension benefit obligation. In accordance with GAAP, net unrecognized gains or losses that exceed ten percent of the greater of the projected benefit obligation or the market-related value of plan assets are required to be amortized over the expected service period of active employees, and are included as a component of net pension cost. Stock-based compensation totaled $11 million during each of the quarters ended September 30, 2015 and September 30, 2014, $17 million during the quarter ended June 30, 2015 and $55 million and $54 million for the nine-month periods ended September 30, 2015 and 2014, respectively. The number of full-time equivalent employees was 15,456 at September 30, 2015, 15,260 at September 30, 2014, 15,312 at December 31, 2014 and 15,380 at June 30, 2015.

Excluding the nonoperating expense items described earlier from each period, nonpersonnel operating expenses were $286 million in the third quarter of 2015, compared with $309 million and $329 million in the year-earlier quarter and the second quarter of 2015, respectively. On the same basis, those expenses were $905 million and $937 million during the first nine months of 2015 and 2014, respectively. The decrease in such operating

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expenses in the recent quarter when compared with last year’s third quarter reflects lower professional services costs. The decrease in nonpersonnel operating expenses in the recent quarter as compared with the second quarter of 2015 was predominantly due to the $40 million of charitable contributions made in the second quarter of 2015. The decline in nonpersonnel operating expenses in the first nine months of 2015 as compared with the corresponding 2014 period was predominantly attributable to lower expenses for professional services, litigation-related costs and FDIC assessments, offset in part, by higher charitable contributions. Professional services costs related to BSA/AML compliance, capital planning and stress testing, risk management and other operational initiatives were elevated throughout 2014. The higher litigation-related charges in 2014 were associated with pre-acquisition activities of M&T’s Wilmington Trust entities.

The efficiency ratio, or noninterest operating expenses (as defined above) divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of noninterest operating expenses to revenues. The Company’s efficiency ratio was 57.1% during the recent quarter, improved from 58.4% and 58.2% in the year-earlier quarter and the second quarter of 2015, respectively. The efficiency ratios for the nine-month periods ended September 30, 2015 and 2014 were 58.9% and 59.8%, respectively.

Income Taxes

The provision for income taxes for the third quarter of 2015 was $154 million, compared with $150 million and $167 million in the year-earlier quarter and second quarter of 2015, respectively. The effective tax rates were 35.5%, 35.3% and 36.8% for the quarters ended September 30, 2015, September 30, 2014 and June 30, 2015, respectively. For the nine-month periods ended September 30, 2015 and 2014, the provision for income taxes was $455 million and $419 million, respectively, and the effective tax rates were 36.0% and 34.7%, respectively. As noted earlier, effective January 1, 2015 the Company adopted amended guidance from the FASB for accounting for investments in qualified affordable housing projects, which resulted in the restatement of the consolidated financial statements for 2014 and earlier years. The adoption of the guidance resulted in higher effective tax rates than existed prior to such adoption. The Company attributed $11 million of non-deductible goodwill to the basis of the trade processing business sold in April 2015, which reduced the recorded gain. Excluding the impact of the attribution of the non-deductible goodwill, the effective tax rate for the three-month period ended June 30, 2015 and the nine-month period ended September 30, 2015 would have been 35.9% and 35.7%, respectively. During the second quarter of 2014, the Company resolved with tax authorities previously uncertain tax positions associated with pre-acquisition activities of M&T’s Wilmington Trust entities, resulting in a reduction of the provision for income taxes of $8 million. Excluding that reduction of income tax expense, the effective tax rate would have been 35.4% for the nine-month period ended September 30, 2014. The effective tax rate is affected by the level of income earned that is exempt from tax relative to the overall level of pre-tax income, the level of income allocated to the various state and local jurisdictions where the Company operates, because tax rates differ among such jurisdictions, and the impact of any large but infrequently occurring items.

The Company’s effective tax rate in future periods will be affected by the results of operations allocated to the various tax jurisdictions within which the Company operates, any change in income tax laws or regulations within those jurisdictions, and interpretations of income tax regulations that differ from the Company’s interpretations by any of various tax authorities that may examine tax returns filed by M&T or any of its subsidiaries.

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Capital

Shareholders’ equity was $12.9 billion at September 30, 2015, representing 13.21% of total assets, compared with $12.3 billion or 12.68% of total assets a year earlier and $12.3 billion or 12.76% at December 31, 2014.

Included in shareholders’ equity was preferred stock with financial statement carrying values of $1.2 billion at each of September 30, 2015, September 30, 2014 and December 31, 2014. Further information concerning M&T’s preferred stock can be found in note 6 of Notes to Financial Statements.

Common shareholders’ equity was $11.7 billion, or $87.67 per share, at September 30, 2015, compared with $11.1 billion, or $83.99 per share, at September 30, 2014 and $11.1 billion, or $83.88 per share, at December 31, 2014. Tangible equity per common share, which excludes goodwill and core deposit and other intangible assets and applicable deferred tax balances, was $61.22 at the end of the recent quarter, compared with $57.10 a year earlier and $57.06 at December 31, 2014. The Company’s ratio of tangible common equity to tangible assets was 8.66% at September 30, 2015, compared with 8.05% a year earlier and 8.11% at December 31, 2014. Reconciliations of total common shareholders’ equity and tangible common equity and total assets and tangible assets as of each of those respective dates are presented in table 2.

Shareholders’ equity reflects accumulated other comprehensive income or loss, which includes the net after-tax impact of unrealized gains or losses on investment securities classified as available for sale, unrealized losses on held-to-maturity securities for which an other-than-temporary impairment charge has been recognized, gains or losses associated with interest rate swap agreements designated as cash flow hedges, foreign currency translation adjustments and adjustments to reflect the funded status of defined benefit pension and other postretirement plans. Net unrealized gains on investment securities reflected in shareholders’ equity, net of applicable tax effect, were $128 million, or $.96 per common share, at September 30, 2015, compared with net unrealized gains of $109 million, or $.83 per common share, at September 30, 2014 and $127 million, or $.96 per common share, at December 31, 2014. Information about unrealized gains and losses as of September 30, 2015 and December 31, 2014 is included in note 3 of Notes to Financial Statements.

Reflected in net unrealized gains at September 30, 2015 were pre-tax effect unrealized losses of $38 million on available-for-sale investment securities with an amortized cost of $2.1 billion and pre-tax effect unrealized gains of $274 million on securities with an amortized cost of $8.8 billion. The pre-tax effect unrealized losses reflect $18 million of losses on trust preferred securities issued by financial institutions having an amortized cost of $124 million and an estimated fair value of $106 million (generally considered Level 2 valuations). Further information concerning the Company’s valuations of available-for-sale investment securities is provided in note 12 of Notes to Financial Statements.

The Company assesses impairment losses on privately issued mortgage-backed securities in the held-to-maturity portfolio by performing internal modeling to estimate bond-specific cash flows considering recent performance of the mortgage loan collateral and utilizing assumptions about future defaults and loss severity. These bond-specific cash flows also reflect the placement of the bond in the overall securitization structure and the remaining subordination levels. In total, at September 30, 2015 and December 31, 2014, the Company had in its held-to-maturity portfolio privately issued mortgage-backed securities with an amortized cost basis of $187 million and $202 million, respectively, and a fair value of $148 million and $158 million, respectively. At September 30, 2015, 86% of the mortgage-backed securities were in the most senior tranche of the securitization structure with 27% being independently rated as investment grade. The mortgage-backed securities are

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generally collateralized by residential and small-balance commercial real estate loans originated between 2004 and 2008 and had a weighted-average credit enhancement of 16% at September 30, 2015, calculated by dividing the remaining unpaid principal balance of bonds subordinate to the bonds owned by the Company plus any overcollateralization remaining in the securitization structure by the remaining unpaid principal balance of all bonds in the securitization structure. All mortgage-backed securities in the held-to-maturity portfolio had a current payment status as of September 30, 2015. The weighted-average default percentage and loss severity assumptions utilized in the Company’s internal modeling were 34% and 85%, respectively. The Company has concluded that as of September 30, 2015, its privately issued mortgage-backed securities were not other-than-temporarily impaired. Nevertheless, it is possible that adverse changes in the future performance of mortgage loan collateral underlying such securities could impact the Company’s conclusions.

As of September 30, 2015, based on a review of each of the remaining securities in the investment securities portfolio, the Company concluded that the declines in the values of any securities containing an unrealized loss were temporary and that any additional other-than-temporary impairment charges were not appropriate. It is likely that the Company will be required to sell certain of its collateralized debt obligations backed by trust preferred securities held in the available-for-sale portfolio to comply with the provisions of the Volcker Rule. However, the amortized cost and fair value of those collateralized debt obligations were $24 million and $30 million, respectively, at September 30, 2015 and the Company did not expect that it would realize any material losses if it ultimately was required to sell such securities. As of that date, the Company did not intend to sell nor is it anticipated that it would be required to sell any of its other impaired securities, that is, where fair value is less than the cost basis of the security. The Company intends to continue to closely monitor the performance of its securities because changes in their underlying credit performance or other events could cause the cost basis of those securities to become other-than-temporarily impaired. However, because the unrealized losses on available-for-sale investment securities have generally already been reflected in the financial statement values for investment securities and shareholders’ equity, any recognition of an other-than-temporary decline in value of those investment securities would not have a material effect on the Company’s consolidated financial condition. Any other-than-temporary impairment charge related to held-to-maturity securities would result in reductions in the financial statement values for investment securities and shareholders’ equity. Additional information concerning fair value measurements and the Company’s approach to the classification of such measurements is included in note 12 of the Notes to Financial Statements.

Adjustments to reflect the funded status of defined benefit pension and other postretirement plans, net of applicable tax effect, reduced accumulated other comprehensive income by $289 million, or $2.17 per common share, at September 30, 2015, $95 million, or $.72 per common share, at September 30, 2014 and $306 million, or $2.31 per common share, at December 31, 2014.

Cash dividends declared on M&T’s common stock totaled $94 million in each of the two most recent quarters, compared with $93 million in the third quarter of 2014, and represented a quarterly dividend of $.70 per common share in each of those quarters. Common stock dividends during the nine-month periods ended September 30, 2015 and 2014 were $281 million and $278 million, respectively.

Cash dividends declared on preferred stock are detailed in the accompanying table. There were no cash dividends declared in the first quarter of 2014 on the Series E Preferred Stock issued in February 2014.

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PREFERRED STOCK DIVIDENDS

In thousands

	1st Qtr.		2nd Qtr.		3rd Qtr.		Year- to-date
Series A – 2015	$	3,666		3,666		3,666		10,998
Series A – 2014		3,666		3,666		3,666		10,998
Series C – 2015		2,414		2,414		2,414		7,242
Series C – 2014		2,414		2,414		2,414		7,242
Series D – 2015		8,594		8,593		8,594		25,781
Series D – 2014		8,594		8,593		8,594		25,781
Series E – 2015		5,644		5,644		5,644		16,932
Series E – 2014		—		5,770		5,769		11,539
Totals – 2015	$	20,318		20,317		20,318		60,953
Totals – 2014	$	14,674		20,443		20,443		55,560

The Company did not repurchase any shares of its common stock during 2014 or the first nine months of 2015.

M&T and its subsidiary banks are required to comply with applicable capital adequacy standards established by the federal banking agencies. In July 2013, the Federal Reserve Board, the OCC and the FDIC approved New Capital Rules establishing a new comprehensive capital framework for U.S. banking organizations. These rules went into effect as to M&T and its subsidiary banks on January 1, 2015, subject to phase-in periods for certain components and other provisions.

The New Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including M&T and its subsidiaries, M&T Bank and Wilmington Trust, N.A., as compared to the U.S. general risk-based capital rules that were applicable to the Company through December 31, 2014. The New Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The New Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios. In addition, the New Capital Rules implement certain provisions of the Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules.

Among other matters, the New Capital Rules: (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to the previous regulations. Under the New Capital Rules, for most banking organizations, including M&T, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock and the most common forms of Tier 2 capital are subordinated notes and a portion of the allowance for loan and lease losses, in each case, subject to the New Capital Rules’ specific requirements.

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Pursuant to the New Capital Rules, the minimum capital ratios as of January 1, 2015 are as follows:

• 4.5% CET1 to risk-weighted assets;

• 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

• 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

• 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).

Pursuant to the New Capital Rules, non-advanced approaches banking organizations, including M&T, may make a one-time permanent election to exclude the effects of certain accumulated other comprehensive income or loss items reflected in shareholders’ equity under U.S. GAAP. M&T made that election during the first quarter of 2015. The New Capital Rules also preclude certain hybrid securities, such as trust preferred securities, from inclusion in bank holding companies’ Tier 1 capital, subject to phase-out in the case of bank holding companies, such as M&T, that had $15 billion or more in total consolidated assets as of December 31, 2009. As a result, beginning in 2015 25% of M&T’s trust preferred securities became includable in Tier 1 capital, and in 2016, none of M&T’s trust preferred securities will be includable in Tier 1 capital. Trust preferred securities no longer included in M&T’s Tier 1 capital may nonetheless be included as a component of Tier 2 capital on a permanent basis without phase-out and irrespective of whether such securities otherwise meet the revised definition of Tier 2 capital set forth in the New Capital Rules. A detailed discussion of the new regulatory capital rules is included in Part I, Item 1 of Form 10-K for the year ended December 31, 2014.

The regulatory capital ratios of the Company, M&T Bank and Wilmington Trust, N.A., as of September 30, 2015 are presented in the accompanying table.

REGULATORY CAPITAL RATIOS

September 30, 2015

	M&T			M&T			Wilmington
	(Consolidated)			Bank			Trust, N.A.
Common equity Tier 1		10.08	%		10.54	%		88.19	%
Tier 1 capital		11.94	%		10.54	%		88.19	%
Total capital		14.70	%		13.06	%		88.94	%
Tier 1 leverage		10.31	%		9.11	%		17.36	%

On March 12, 2015, M&T announced that the Federal Reserve did not object to M&T’s proposed 2015 Capital Plan. Accordingly, M&T may maintain a quarterly common stock dividend of $.70 per share; continue to pay dividends and interest on other equity and debt instruments included in regulatory capital, including preferred stock, trust preferred securities and subordinated debt that were outstanding at December 31, 2014, consistent with the contractual terms of those instruments; repurchase up to $200 million of common shares during the first half of 2016; and redeem or repurchase up to $310 million of trust preferred securities. As previously noted, those latter securities were redeemed in April 2015. Common and preferred dividends are subject to approval by M&T’s Board of Directors in the ordinary course of business.

Segment Information

As required by GAAP, the Company’s reportable segments have been determined based upon its internal profitability reporting system, which is organized by

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strategic business unit. Financial information about the Company’s segments is presented in note 14 of Notes to Financial Statements. During 2015, certain methodology and organizational changes were made and, accordingly, the financial information for the Company’s reportable segments for 2014 has been restated to conform with the methods and assumptions used in 2015. As described in note 14 of Notes to Financial Statements, the methodology changes were largely the result of updated funds transfer pricing and various cost allocations. Additionally, the segment financial data also reflect the Company’s adoption of amended guidance for accounting for investments in qualified affordable housing projects.

The Business Banking segment earned $24 million in the third quarter of 2015, compared with $25 million in each of the three-month periods ended September 30, 2014 and June 30, 2015. As compared with the year-earlier quarter, a decrease in net interest income of $2 million was offset, in part, by higher merchant discount and credit card fees of $1 million. The lower net interest income reflected a narrowing of the net interest margin. The modest decline in net income as compared with the second quarter of 2015 reflected a $2 million increase in the provision for credit losses, due to higher net charge-offs, partially offset by an increase in merchant discount and credit card fees of $1 million. Net income recorded by the Business Banking segment totaled $74 million in each of the nine-month periods ended September 30, 2015 and 2014. As compared with the 2014 period, a $4 million decrease in the provision for credit losses, due to lower net charge-offs, a $3 million increase in merchant discount and credit card fees and lower costs for FDIC assessments of $1 million were offset by a decline in net interest income of $8 million. The decline in net interest income resulted from a narrowing of the net interest margin offset, in part, by an increase in average outstanding deposit balances of $543 million.

The Commercial Banking segment contributed net income of $108 million in each of the two most recent quarters, compared with $101 million in the third quarter of 2014. The recent quarter’s 8% improvement as compared with the year-earlier quarter reflected increased gains on sales of previously leased equipment of $13 million and a $7 million increase in net interest income, partially offset by a $9 million rise in the provision for credit losses, due to higher net charge-offs. The higher net interest income was due predominantly to higher average outstanding loan balances of $1.2 billion. As compared with the second quarter of 2015, increased gains on sales of previously leased equipment of $12 million and a $6 million increase in net interest income were partially offset by an $11 million increase in the provision for credit losses, due to higher net charge-offs, and lower credit-related fees of $7 million. The higher net interest income reflected a widening of the net interest margin on loans and a $665 million increase in average outstanding deposit balances. Year-to-date net income for this segment totaled $313 million in 2015 and $304 million in 2014. The improved performance in 2015 resulted largely from increased gains on sales of previously leased equipment of $15 million and an $8 million rise in net interest income, partially offset by a $6 million increase in the provision for credit losses. The higher net interest income reflected growth in average outstanding loan and deposit balances of $1.3 billion and $680 million, respectively.

The Commercial Real Estate segment recorded net income of $85 million during the quarter ended September 30, 2015, compared with $79 million earned in the year-earlier quarter and $83 million in the second quarter of 2015. The recent quarter’s 8% rise in net income as compared with 2014’s third quarter was largely due to a $9 million increase in net interest income, predominantly resulting from higher average outstanding loan balances of $1.7 billion. The increase in net income as compared with the second quarter of

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2015 reflected an increase in net interest income and a decrease in the provision for credit losses, partially offset by a decline in mortgage banking revenues, the result of lower origination and sales activities. The higher net interest income resulted from increases in average outstanding loan balances of $177 million. Net income for the Commercial Real Estate segment was $251 million and $230 million for the first nine months of 2015 and 2014, respectively. That improvement reflects an $18 million rise in net interest income, a $13 million increase in mortgage banking revenues and a $3 million decrease in the provision for credit losses. The higher net interest income resulted largely from increases in average outstanding loan and deposit balances of $1.6 billion and $345 million, respectively, partially offset by a narrowing of the net interest margin.

The Discretionary Portfolio segment contributed net income of $5 million in the third quarter of 2015, compared with $12 million in the year-earlier quarter and $11 million in the second quarter of 2015. The decline in net income as compared with the year-earlier period was largely due to a $10 million decline in net interest income, partially offset by a $2 million decrease in the provision for credit losses. The lower net interest income reflected a 23 basis point narrowing of the net interest margin on investment securities resulting from the Company’s allocation of funding charges associated with those assets. The recent quarter’s unfavorable performance as compared with the immediately preceding quarter reflected a $3 million decrease in bank owned life insurance revenues and a $4 million decrease in net interest income, resulting from a narrowing of the net interest margin on investment securities and loans. Net income recorded by the Discretionary Portfolio segment totaled $22 million for the first nine months of 2015, compared with $39 million earned in the corresponding 2014 period. The decline was predominantly due to lower net interest income of $30 million that resulted from a 31 basis point narrowing of the net interest margin on investment securities.

Net contribution from the Residential Mortgage Banking segment totaled $21 million in the recent quarter, compared with $23 million in the third quarter of 2014 and $25 million in the second quarter of 2015. The recent quarter’s decline in net income as compared with the year-earlier quarter reflected a $6 million decrease in revenues from servicing residential real estate loans, largely related to sub-servicing activities, partially offset by lower amortization of capitalized servicing rights of $4 million (reflecting lower prepayment trends). The decline in net income in 2015’s third quarter as compared with the immediately preceding quarter reflected decreases in revenues from servicing residential real estate loans of $5 million and in revenues from mortgage origination and sales activities (including intersegment revenues) of $3 million. Year-to-date net income recorded by the Residential Mortgage Banking segment totaled $75 million in 2015 and $65 million in 2014. The improved performance in 2015 was attributable to: an $8 million increase in revenues from mortgage origination and sales activities (including intersegment revenues) due to higher origination volumes; a $4 million rise in revenues from servicing residential real estate loans, predominantly the result of increased sub-servicing activities; and lower amortization of capitalized servicing rights of $15 million. Partially offsetting those favorable factors were higher professional services and personnel-related costs of $2 million each and increased servicing costs.

Net income earned by the Retail Banking segment totaled $65 million in the quarter ended September 30, 2015, compared with $72 million in the year-earlier period and $69 million in the second quarter of 2015. The decline in net income as compared with the year-earlier quarter reflects a $3 million decrease in net interest income, a $2 million reduction in fees earned for providing deposit account services and an increase in centrally-allocated technology-related operating expenses. The lower net interest income resulted

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from a narrowing of the net interest margin, partially offset by an increase in average outstanding loans of $543 million. As compared with the immediately preceding quarter, a $4 million increase in the provision for credit losses, resulting from higher net charge-offs, and higher equipment and occupancy costs of $3 million were partially offset by a $2 million increase in net interest income. The increase in net interest income resulted from higher average outstanding loan balances of $209 million, partially offset by lower average outstanding deposit balances of $331 million. Year-to-date net income for this segment totaled $202 million in 2015 and $214 million in 2014. The year-over-year decline was due to a $9 million decrease in net interest income, a $5 million reduction in fees earned for providing deposit account services, a $4 million reduction in servicing revenues related to securitized automobile loans, and higher allocated expenses, largely compliance and technology-related. Those factors were offset, in part, by lower personnel-related and equipment and occupancy costs. The decline in net interest income resulted from a narrowing of the net interest margin, partially offset by a $594 million increase in average outstanding loan balances.

The “All Other” category encompasses other activities of the Company that are not directly attributable to the reported segments. Reflected in this category are the amortization of core deposit and other intangible assets resulting from the acquisitions of financial institutions, M&T’s share of the operating losses of BLG, merger-related gains and expenses related to acquisitions, and the net impact of the Company’s allocation methodologies for internal transfers for funding charges and credits associated with the earning assets and interest-bearing liabilities of the Company’s reportable segments and the provision for credit losses. The “All Other” category also includes the trust income of the Company that reflects the ICS and WAS business activities. The various components of the “All Other” category resulted in net losses of $28 million in the quarter ended September 30, 2015, $36 million in the third quarter of 2014 and $34 million in the second quarter of 2015. The most significant factors contributing to the reduced net loss in the recent quarter as compared to the year-earlier period include a decrease in professional services expenses of $18 million and the favorable impact from the Company’s allocation methodologies for internal transfers for funding charges and credits associated with earning assets and interest-bearing liabilities of the Company’s reportable segments. Those favorable factors were largely offset by increases in personnel-related expenses of $13 million and a decline in trust income of $15 million, largely due to the impact of the sale of the trade processing business within the retirement services division of ICS in the second quarter of 2015. Results for the second quarter of 2015 reflected a $45 million pre-tax gain related to that sale, partially offset by $40 million of tax-deductible cash contributions to The M&T Charitable Foundation. The after-tax impact of those two items lowered net income by approximately $1 million. Furthermore, as compared with the second quarter of 2015, decreases during the recent quarter in personnel-related expenses of $3 million and the favorable impact from the Company’s allocation methodologies for internal transfers for funding charges and credits associated with earning assets and interest-bearing liabilities of the Company’s reportable segments were partially offset by decreases in trust income of $5 million, largely attributable to seasonal tax preparation fees in 2015’s second quarter. The “All Other” category had a net loss of $129 million in the first nine months of 2015, compared with $137 million in 2014. The favorable impact from lower professional services costs and the Company’s allocation methodologies was offset, in part, by increased personnel-related expenses and a decline in trust income, largely due to the impact of the sold trade processing business.

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Recent Accounting Developments

As previously noted, the Company adopted amended accounting guidance for investments in qualified affordable housing projects under which the initial cost of investments in qualified affordable housing projects is amortized in proportion to the tax credits and other tax benefits received from such projects and recognized in the income statement as a component of income tax expense. As required, the guidance was applied retrospectively to all periods presented. The adoption of this guidance did not have a significant effect on the Company’s consolidated financial position or results of operations, but did result in the restatement of the consolidated statement of income for the three-month and nine-month periods ended September 30, 2014 to remove $14 million and $39 million, respectively, of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The Company amortized $10 million and $31 million of its investments in qualified affordable housing projects to income tax expense during the three-month and nine-month periods ended September 30, 2015, respectively.

In the first quarter of 2015, the Company adopted amended accounting guidance from the FASB related to the classification of certain government-guaranteed mortgage loans upon foreclosure. This guidance requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based upon the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The adoption of this guidance did not have a significant effect on the Company’s consolidated financial position or results of operations.

Effective January 1, 2015, the Company adopted amended accounting guidance for repurchase-to-maturity transactions and repurchase financings. The adoption had no impact on the Company’s consolidated financial position or results of operations. The Company has made the required disclosures in note 5 of Notes to Financial Statements.

In January 2015, the Company also adopted amended accounting and disclosure guidance for reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The amended guidance clarifies that an in-substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amended guidance also requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The Company’s adoption of this guidance on January 1, 2015 did not have a significant effect on the Company’s consolidated financial position or results of operations. The Company has made the required disclosures in note 4 of Notes to Financial Statements.

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In September 2015, the FASB issued amended guidance for measurement-period adjustments related to business combinations. The amended guidance requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer will be required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. This guidance is effective for adjustments to provisional amounts that occur in annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company is still evaluating the impact the guidance could have on its consolidated financial statements.

In May 2015, the FASB issued amended disclosure guidance for investments in certain entities that calculate net asset value per share (or its equivalent). The amended guidance removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Instead, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect the amended guidance to have a material impact on its consolidated financial statements.

In April 2015, the FASB issued amended accounting guidance for debt issuance costs. The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect a material change in the presentation of its consolidated financial position upon adoption of this amended guidance.

In February 2015, the FASB issued amended accounting guidance relating to the consolidation of variable interest entities to modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and to eliminate the presumption that a general partner should consolidate a limited partnership. The amended guidance also eliminates certain conditions in the assessment of whether fees paid by a legal entity to a decision maker or a service provider represent a variable interest in the legal entity and reduces the extent to which related party arrangements cause an entity to be considered a primary beneficiary. The new guidance eliminates the indefinite deferral of existing consolidation guidance for certain investment funds, but provides a scope exception for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for annual and interim periods within those annual periods beginning after December 15, 2015. The Company is still evaluating the impact the guidance could have on its consolidated financial statements.

In June 2014, the FASB issued amended accounting guidance for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amended guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes

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probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 31, 2015, with earlier adoption permitted. The Company does not expect the amended guidance to have a material impact on its consolidated financial position or results of operations.

In May 2014, the FASB issued amended accounting and disclosure guidance for revenue from contracts with customers. The core principle of the accounting guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amended disclosure guidance requires sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB deferred the effective date of this guidance by one year. The amended guidance is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The guidance should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial application. The Company is still evaluating the impact the guidance could have on its consolidated financial statements.

Forward-Looking Statements

Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this quarterly report contain forward-looking statements that are based on current expectations, estimates and projections about the Company’s business, management’s beliefs and assumptions made by management. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” or “may,” or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to update forward-looking statements.

Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values of loans, collateral securing loans and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and

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number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation and/or regulation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation or regulation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the FASB or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries’ future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 1

QUARTERLY TRENDS

	2015 Quarters									2014 Quarters
	Third			Second			First			Fourth			Third			Second			First
Earnings and dividends
Amounts in thousands, except per share
Interest income (taxable-equivalent basis)	$	776,274			766,374			743,925			762,619			748,864			740,139			728,897
Interest expense		77,199			77,226			78,499			74,772			73,964			65,176			66,519
Net interest income		699,075			689,148			665,426			687,847			674,900			674,963			662,378
Less: provision for credit losses		44,000			30,000			38,000			33,000			29,000			30,000			32,000
Other income		439,699			497,027			440,203			451,643			451,111			456,412			420,107
Less: other expense		653,816			696,628			686,375			666,221			665,359			667,660			690,234
Income before income taxes		440,958			459,547			381,254			440,269			431,652			433,715			360,251
Applicable income taxes		154,309			166,839			133,803			156,713			150,467			143,530			125,289
Taxable-equivalent adjustment		6,248			6,020			5,838			6,007			5,841			5,849			5,945
Net income	$	280,401			286,688			241,613			277,549			275,344			284,336			229,017
Net income available to common shareholders-diluted	$	257,346			263,481			218,837			254,239			251,917			260,695			211,731
Per common share data
Basic earnings	$	1.94			1.99			1.66			1.93			1.92			1.99			1.63
Diluted earnings		1.93			1.98			1.65			1.92			1.91			1.98			1.61
Cash dividends	$	.70			.70			.70			.70			.70			.70			.70
Average common shares outstanding
Basic		132,630			132,356			132,049			131,450			131,265			130,856			130,212
Diluted		133,376			133,116			132,769			132,278			132,128			131,828			131,126
Performance ratios, annualized
Return on
Average assets		1.13	%		1.18	%		1.02	%		1.12	%		1.17	%		1.27	%		1.07	%
Average common shareholders’ equity		8.93	%		9.37	%		7.99	%		9.10	%		9.18	%		9.79	%		8.22	%
Net interest margin on average earning assets (taxable-equivalent basis)		3.14	%		3.17	%		3.17	%		3.10	%		3.23	%		3.40	%		3.52	%
Nonaccrual loans to total loans and leases, net of unearned discount		1.15	%		1.17	%		1.18	%		1.20	%		1.29	%		1.36	%		1.39	%
Net operating (tangible) results (a)
Net operating income (in thousands)	$	282,907			290,341			245,776			281,929			279,838			289,974			235,162
Diluted net operating income per common share		1.95			2.01			1.68			1.95			1.94			2.02			1.66
Annualized return on
Average tangible assets		1.18	%		1.24	%		1.08	%		1.18	%		1.24	%		1.35	%		1.15	%
Average tangible common shareholders’ equity		12.98	%		13.76	%		11.90	%		13.55	%		13.80	%		14.92	%		12.76	%
Efficiency ratio (b)		57.05	%		58.23	%		61.46	%		57.84	%		58.44	%		58.20	%		62.83	%
Balance sheet data
In millions, except per share
Average balances
Total assets (c)	$	98,515			97,598			95,892			98,644			93,245			89,873			86,665
Total tangible assets (c)		94,989			94,067			92,346			95,093			89,689			86,311			83,096
Earning assets		88,446			87,333			85,212			87,965			82,776			79,556			76,288
Investment securities		14,441			14,195			13,376			12,978			12,780			10,959			9,265
Loans and leases, net of unearned discount		67,849			67,670			66,587			65,767			64,763			64,343			63,763
Deposits		73,821			72,958			71,698			75,515			70,772			69,659			67,327
Common shareholders’ equity (c)		11,555			11,404			11,227			11,211			11,015			10,808			10,576
Tangible common shareholders’ equity (c)		8,029			7,873			7,681			7,660			7,459			7,246			7,007
At end of quarter
Total assets (c)	$	97,797			97,080			98,378			96,686			97,228			90,835			88,530
Total tangible assets (c)		94,272			93,552			94,834			93,137			93,674			87,276			84,965
Earning assets		87,807			86,990			87,959			86,278			86,751			80,062			77,950
Investment securities		14,495			14,752			14,393			12,994			13,348			12,120			10,364
Loans and leases, net of unearned discount		68,540			68,131			67,099			66,669			65,572			64,748			64,135
Deposits		72,945			72,630			73,594			73,582			74,342			69,829			68,699
Common shareholders’ equity, net of undeclared cumulative preferred dividends (c)		11,687			11,433			11,294			11,102			11,099			10,934			10,652
Tangible common shareholders’ equity (c)		8,162			7,905			7,750			7,553			7,545			7,375			7,087
Equity per common share		87.67			85.90			84.95			83.88			83.99			82.86			81.05
Tangible equity per common share		61.22			59.39			58.29			57.06			57.10			55.89			53.92
Market price per common share
High	$	134.00			128.70			129.58			128.96			128.69			125.90			123.04
Low		111.86			117.86			111.78			112.42			118.51			116.10			109.16
Closing		121.95			124.93			127.00			125.62			123.29			124.05			121.30

(a) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in Table 2.

(b) Excludes impact of merger-related gains and expenses and net securities transactions.

(c) The difference between total assets and total tangible assets, and common shareholders’ equity and tangible common shareholders’ equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in Table 2.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 2

RECONCILIATION OF QUARTERLY GAAP TO NON-GAAP MEASURES

	2015 Quarters									2014 Quarters
	Third			Second			First			Fourth			Third			Second			First
Income statement data
In thousands, except per share
Net income
Net income	$	280,401			286,688			241,613			277,549			275,344			284,336			229,017
Amortization of core deposit and other intangible assets (a)		2,506			3,653			4,163			4,380			4,494			5,638			6,145
Net operating income	$	282,907			290,341			245,776			281,929			279,838			289,974			235,162
Earnings per common share
Diluted earnings per common share	$	1.93			1.98			1.65			1.92			1.91			1.98			1.61
Amortization of core deposit and other intangible assets (a)		.02			.03			.03			.03			.03			.04			.05
Diluted net operating earnings per common share	$	1.95			2.01			1.68			1.95			1.94			2.02			1.66
Other expense
Other expense	$	653,816			696,628			686,375			666,221			665,359			667,660			690,234
Amortization of core deposit and other intangible assets		(4,090	)		(5,965	)		(6,793	)		(7,170	)		(7,358	)		(9,234	)		(10,062	)
Noninterest operating expense	$	649,726			690,663			679,582			659,051			658,001			658,426			680,172
Efficiency ratio
Noninterest operating expense (numerator)	$	649,726			690,663			679,582			659,051			658,001			658,426			680,172
Taxable-equivalent net interest income		699,075			689,148			665,426			687,847			674,900			674,963			662,378
Other income		439,699			497,027			440,203			451,643			451,111			456,412			420,107
Less: Loss on bank investment securities		—			(10	)		(98	)		—			—			—			—
Denominator	$	1,138,774			1,186,185			1,105,727			1,139,490			1,126,011			1,131,375			1,082,485
Efficiency ratio		57.05	%		58.23	%		61.46	%		57.84	%		58.44	%		58.20	%		62.83	%
Balance sheet data
In millions
Average assets
Average assets	$	98,515			97,598			95,892			98,644			93,245			89,873			86,665
Goodwill		(3,513	)		(3,514	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(20	)		(25	)		(31	)		(38	)		(45	)		(53	)		(64	)
Deferred taxes		7			8			10			12			14			16			20
Average tangible assets	$	94,989			94,067			92,346			95,093			89,689			86,311			83,096
Average common equity
Average total equity	$	12,787			12,636			12,459			12,442			12,247			12,039			11,648
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,231	)		(1,232	)		(1,231	)		(1,072	)
Average common equity		11,555			11,404			11,227			11,211			11,015			10,808			10,576
Goodwill		(3,513	)		(3,514	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(20	)		(25	)		(31	)		(38	)		(45	)		(53	)		(64	)
Deferred taxes		7			8			10			12			14			16			20
Average tangible common equity	$	8,029			7,873			7,681			7,660			7,459			7,246			7,007
At end of quarter
Total assets
Total assets	$	97,797			97,080			98,378			96,686			97,228			90,835			88,530
Goodwill		(3,513	)		(3,513	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(18	)		(22	)		(28	)		(35	)		(42	)		(49	)		(59	)
Deferred taxes		6			7			9			11			13			15			19
Total tangible assets	$	94,272			93,552			94,834			93,137			93,674			87,276			84,965
Total common equity
Total equity	$	12,922			12,668			12,528			12,336			12,333			12,169			11,887
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,231	)		(1,232	)		(1,232	)		(1,232	)
Undeclared dividends—cumulative preferred stock		(3	)		(3	)		(2	)		(3	)		(2	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		11,687			11,433			11,294			11,102			11,099			10,934			10,652
Goodwill		(3,513	)		(3,513	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(18	)		(22	)		(28	)		(35	)		(42	)		(49	)		(59	)
Deferred taxes		6			7			9			11			13			15			19
Total tangible common equity	$	8,162			7,905			7,750			7,553			7,545			7,375			7,087
(a)    After any related tax effect.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 3

AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES

	2015 Third Quarter								2015 Second Quarter								2015 First Quarter
	Average					Average			Average					Average			Average					Average
Average balance in millions; interest in thousands	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
Assets
Earning assets
Loans and leases, net of unearned discount*
Commercial, financial, etc.	$	19,939		$	161,709		3.22	%		19,973			158,109		3.18	%		19,457			153,866		3.21	%
Real estate—commercial		28,309			302,626		4.18			28,208			298,565		4.19			27,596			288,121		4.18
Real estate—consumer		8,348			87,047		4.17			8,447			88,473		4.19			8,572			88,850		4.15
Consumer		11,253			126,369		4.46			11,042			122,812		4.46			10,962			121,366		4.49
Total loans and leases, net		67,849			677,751		3.96			67,670			667,959		3.96			66,587			652,203		3.97
Interest-bearing deposits at banks		6,060			3,852		.25			5,326			3,351		.25			5,073			3,118		.25
Federal funds sold and agreements to resell securities		—			—		—			39			9		.10			97			24		.10
Trading account		96			125		.52			103			239		.92			79			565		2.87
Investment securities**
U.S. Treasury and federal agencies		13,548			86,152		2.52			13,265			83,356		2.52			12,437			78,313		2.55
Obligations of states and political subdivisions		138			1,398		4.03			149			1,607		4.32			159			1,967		5.04
Other		755			6,996		3.68			781			9,853		5.06			780			7,735		4.02
Total investment securities		14,441			94,546		2.60			14,195			94,816		2.68			13,376			88,015		2.67
Total earning assets		88,446			776,274		3.48			87,333			766,374		3.52			85,212			743,925		3.54
Allowance for credit losses		(937	)							(929	)							(925	)
Cash and due from banks		1,218								1,180								1,221
Other assets		9,788								10,014								10,384
Total assets	$	98,515								97,598								95,892
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
NOW accounts	$	1,309			360		.11			1,333			349		.11			1,121			311		.11
Savings deposits		41,197			10,937		.11			41,712			10,361		.10			41,525			10,219		.10
Time deposits		2,858			3,643		.51			2,948			3,690		.50			3,017			3,740		.50
Deposits at Cayman Islands office		206			151		.29			212			150		.28			224			147		.27
Total interest-bearing deposits		45,570			15,091		.13			46,205			14,550		.13			45,887			14,417		.13
Short-term borrowings		174			32		.07			195			36		.07			196			34		.07
Long-term borrowings		10,114			62,076		2.44			10,164			62,640		2.47			9,835			64,048		2.64
Total interest-bearing liabilities		55,858			77,199		.55			56,564			77,226		.55			55,918			78,499		.57
Noninterest-bearing deposits		28,251								26,753								25,811
Other liabilities		1,619								1,645								1,704
Total liabilities		85,728								84,962								83,433
Shareholders’ equity		12,787								12,636								12,459
Total liabilities and shareholders’ equity	$	98,515								97,598								95,892
Net interest spread							2.93								2.97								2.97
Contribution of interest-free funds							.21								.20								.20
Net interest income/margin on earning assets				$	699,075		3.14	%					689,148		3.17	%					665,426		3.17	%

*       Includes nonaccrual loans. **     Includes available-for-sale securities at amortized cost. (continued)

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 3 (continued)

AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES (continued)

	2014 Fourth Quarter								2014 Third Quarter
	Average					Average			Average					Average
Average balance in millions; interest in thousands	Balance			Interest		Rate			Balance			Interest		Rate
Assets
Earning assets
Loans and leases, net of unearned discount*
Commercial, financial, etc.	$	19,117		$	156,627		3.25	%		18,889			156,440		3.29	%
Real estate—commercial		27,064			293,283		4.24			26,487			283,476		4.19
Real estate—consumer		8,654			90,637		4.19			8,634			90,023		4.17
Consumer		10,932			123,681		4.49			10,753			122,408		4.52
Total loans and leases, net		65,767			664,228		4.01			64,763			652,347		4.00
Interest-bearing deposits at banks		9,054			5,744		.25			5,083			3,198		.25
Federal funds sold and agreements to resell securities		86			18		.08			80			14		.07
Trading account		80			353		1.76			70			287		1.65
Investment securities**
U.S. Treasury and federal agencies		12,032			82,843		2.73			11,817			82,475		2.77
Obligations of states and political subdivisions		160			1,963		4.86			162			1,897		4.65
Other		786			7,470		3.77			801			8,646		4.28
Total investment securities		12,978			92,276		2.82			12,780			93,018		2.89
Total earning assets		87,965			762,619		3.44			82,776			748,864		3.59
Allowance for credit losses		(924	)							(924	)
Cash and due from banks		1,290								1,273
Other assets		10,313								10,120
Total assets	$	98,644								93,245
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
NOW accounts	$	1,083			383		.14			1,037			394		.15
Savings deposits		42,949			11,151		.10			41,056			11,532		.11
Time deposits		3,128			3,915		.50			3,227			3,805		.47
Deposits at Cayman Islands office		265			149		.22			325			161		.20
Total interest-bearing deposits		47,425			15,598		.13			45,645			15,892		.14
Short-term borrowings		195			25		.05			181			19		.04
Long-term borrowings		8,954			59,149		2.62			8,547			58,053		2.69
Total interest-bearing liabilities		56,574			74,772		.52			54,373			73,964		.54
Noninterest-bearing deposits		28,090								25,127
Other liabilities		1,538								1,498
Total liabilities		86,202								80,998
Shareholders’ equity		12,442								12,247
Total liabilities and shareholders’ equity	$	98,644								93,245
Net interest spread							2.92								3.05
Contribution of interest-free funds							.18								.18
Net interest income/margin on earning assets				$	687,847		3.10	%					674,900		3.23	%

* Includes nonaccrual loans.

** Includes available-for-sale securities at amortized cost.

-101-

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Incorporated by reference to the discussion contained under the caption “Taxable-equivalent Net Interest Income” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Item 4. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. Based upon their evaluation of the effectiveness of M&T’s disclosure controls and procedures (as defined in Exchange Act rules 13a-15(e) and 15d-15(e)), Robert G. Wilmers, Chairman of the Board and Chief Executive Officer, and René F. Jones, Executive Vice President and Chief Financial Officer, concluded that M&T’s disclosure controls and procedures were effective as of September 30, 2015.

(b) Changes in internal control over financial reporting. M&T regularly assesses the adequacy of its internal control over financial reporting and enhances its controls in response to internal control assessments and internal and external audit and regulatory recommendations. No changes in internal control over financial reporting have been identified in connection with the evaluation of disclosure controls and procedures during the quarter ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, M&T’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and other matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $40 million. Although the Company does not believe that the outcome of pending litigations will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

Wilmington Trust Corporation Investigative and Litigation Matters

M&T’s Wilmington Trust Corporation (“Wilmington Trust”) subsidiary is the subject of certain governmental investigations arising from actions undertaken by Wilmington Trust prior to M&T’s acquisition of Wilmington Trust and its subsidiaries, as set forth below.

DOJ Investigation: Prior to M&T’s acquisition of Wilmington Trust, the Department of Justice (“DOJ”) commenced an investigation of Wilmington Trust, relating to Wilmington Trust’s financial reporting and securities filings, as well as certain commercial real estate lending relationships involving its subsidiary bank, Wilmington Trust Company, all of which relate to filings and activities occurring prior to the acquisition of Wilmington Trust by M&T. Counsel for Wilmington Trust has met with the DOJ to discuss the DOJ investigation. The DOJ investigation is ongoing.

This investigation could lead to administrative or legal proceedings resulting in potential civil and/or criminal remedies, or settlements, including, among other things, enforcement actions, fines, penalties, restitution or additional costs and expenses.

-102-

In Re Wilmington Trust Securities Litigation (U.S. District Court, District of Delaware, Case No. 10-CV-0990-SLR): Beginning on November 18, 2010, a series of parties, purporting to be class representatives, commenced a putative class action lawsuit against Wilmington Trust, alleging that Wilmington Trust’s financial reporting and securities filings were in violation of securities laws. The cases were consolidated and Wilmington Trust moved to dismiss. The Court issued an order denying Wilmington Trust’s motion to dismiss on March 20, 2014. The parties are currently engaged in the discovery phase of the lawsuit.

Other Matters

The Company is the subject of an investigation by government agencies relating to the origination of Federal Housing Administration (“FHA”) insured residential home loans and residential home loans sold to The Federal Home Loan Mortgage Corporation (“Freddie Mac”) and The Federal National Mortgage Association (“Fannie Mae”). A number of other U.S. financial institutions have announced similar investigations. Regarding FHA loans, the U.S. Department of Housing and Urban Development (“HUD”) Office of Inspector General and the DOJ (collectively, the “Government”) are investigating whether the Company complied with underwriting guidelines concerning certain loans where HUD paid FHA insurance claims. The Company is fully cooperating with the investigation. The Government has advised the Company that based upon its review of a sample of loans for which an FHA insurance claim was paid by HUD, some of the loans do not meet underwriting guidelines. The Company, based on its own review of the sample, does not agree with the sampling methodology and loan analysis employed by the Government. Regarding loans originated by the Company and sold to Freddie Mac and Fannie Mae, the investigation concerns whether the mortgages sold to Freddie Mac and Fannie Mae comply with applicable underwriting guidelines. The Company is also cooperating with that portion of the investigation. The investigation could lead to claims by the Government under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which allow treble and other special damages substantially in excess of actual losses. Remedies in these proceedings or settlements may include restitution, fines, penalties, or alterations in the Company’s business practices. The Company and the Government continue settlement discussions regarding the investigation.

Due to their complex nature, it is difficult to estimate when litigation and investigatory matters such as these may be resolved. As set forth in the introductory paragraph to this Item 1 — Legal Proceedings, losses from current litigation and regulatory matters which the Company is subject to that are not currently considered probable are within a range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, and are included in the range of reasonably possible losses set forth above.

Item 1A. Risk Factors.

There have been no material changes in risk factors relating to M&T to those disclosed in response to Item 1A. to Part I of Form 10-K for the year ended December 31, 2014.

-103-

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a)–(b) Not applicable.

(c)

Issuer Purchases of Equity Securities
							(d)Maximum
					(c)Total		Number (or
					Number of		Approximate
					Shares		Dollar Value)
					(or Units)		of Shares
					Purchased		(or Units)
	(a)Total				as Part of		that may yet
	Number		(b)Average		Publicly		be Purchased
	of Shares		Price Paid		Announced		Under the
	(or Units)		per Share		Plans or		Plans or
Period	Purchased(1)		(or Unit)		Programs		Programs (2)
July 1 – July 31, 2015		4,316	$	129.75		—		2,181,500
August 1 – August 31, 2015		1,288		128.98		—		2,181,500
September 1 – September 30, 2015		738		117.92		—		2,181,500
Total		6,342	$	128.22		—

(1) The total number of shares purchased during the periods indicated reflects shares deemed to have been received from employees who exercised stock options by attesting to previously acquired common shares in satisfaction of the exercise price or shares received from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations, as is permitted under M&T’s stock-based compensation plans.

(2) On February 22, 2007, M&T announced a program to purchase up to 5,000,000 shares of its common stock. No shares were purchased under such program during the periods indicated.

Item 3. Defaults Upon Senior Securities.

(Not applicable.)

Item 4. Mine Safety Disclosures.

(None.)

Item 5. Other Information.

(None.)

-104-

Item 6. Exhibits.

The following exhibits are filed as a part of this report.

Exhibit No.	.
31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Chief Executive Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Chief Financial Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance Document. Filed herewith.
101.SCH	XBRL Taxonomy Extension Schema. Filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. Filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase. Filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. Filed herewith.
101.DEF	XBRL Taxonomy Definition Linkbase. Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		M&T BANK CORPORATION
Date: October 30, 2015	By:	/s/ René F. Jones
		René F. Jones
		Executive Vice President
		and Chief Financial Officer

-105-

EXHIBIT INDEX

Exhibit No.	.
31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Chief Executive Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Chief Financial Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance Document. Filed herewith.
101.SCH	XBRL Taxonomy Extension Schema. Filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. Filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase. Filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. Filed herewith.
101.DEF	XBRL Taxonomy Definition Linkbase. Filed herewith.

-106-

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Robert G. Wilmers, certify that:

1. I have reviewed this quarterly report on Form 10-Q of M&T Bank Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 30, 2015

By:	/s/ Robert G. Wilmers
	Robert G. Wilmers
	Chairman of the Board and
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, René F. Jones, certify that:

1. I have reviewed this quarterly report on Form 10-Q of M&T Bank Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 30, 2015

By:	/s/ René F. Jones
	René F. Jones
	Executive Vice President
	and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER UNDER 18 U.S.C. §1350

I, Robert G. Wilmers, Chairman of the Board and Chief Executive Officer of M&T Bank Corporation, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Quarterly Report on Form 10-Q of M&T Bank Corporation for the quarterly period ended September 30, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of M&T Bank Corporation.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

/s/ Robert G. Wilmers

Robert G. Wilmers

October 30, 2015

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to M&T Bank Corporation and will be retained by M&T Bank Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER UNDER 18 U.S.C. §1350

I, René F. Jones, Executive Vice President and Chief Financial Officer of M&T Bank Corporation, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Quarterly Report on Form 10-Q of M&T Bank Corporation for the quarterly period ended September 30, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of M&T Bank Corporation.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

/s/ René F. Jones

René F. Jones

October 30, 2015

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to M&T Bank Corporation and will be retained by M&T Bank Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Investment Securities - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Investment	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Investment	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Amortized Cost and Fair Value Debt Securities [Abstract]
Gross realized gain or loss on sale of Investment Securities	$ 0	$ 0	$ 0	$ 0
Number of investment securities with aggregate gross unrealized losses | Investment	320		320
Unrealized losses on individual investment securities	$ 83,643,000		$ 83,643,000		$ 73,008,000
Cost method investment securities	$ 337,000,000		$ 337,000,000

XML

Shareholders' Equity - Additional Information (Detail) - $ / shares	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000	1,000,000
Preferred stock, par value	$ 1.00	$ 1.00	$ 1.00
Warrant [Member] | Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Exercise price of each class of warrants or rights outstanding	$ 518.96		$ 518.96
Warrant to purchase common stock	95,383		95,383

XML

Loans and Leases and the Allowance for Credit Losses - Interest Income Recognized on Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	$ 773,478	$ 875,395	$ 763,272	$ 875,219
Interest income recognized, Total	9,552	5,596	20,895	21,405
Interest income recognized, Cash basis	7,430	3,350	14,371	14,421
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	242,157	228,749	226,243	171,227
Interest income recognized, Total	1,017	611	2,123	1,379
Interest income recognized, Cash basis	1,017	611	2,123	1,379
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	179,327	189,952	161,834	194,337
Interest income recognized, Total	2,327	821	4,433	2,616
Interest income recognized, Cash basis	2,327	821	4,433	2,616
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	53,009	90,493	64,165	94,453
Interest income recognized, Total	81	18	275	131
Interest income recognized, Cash basis	81	18	275	131
Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	17,236	58,500	22,130	74,531
Interest income recognized, Total	1,943	251	2,166	1,694
Interest income recognized, Cash basis	1,943	251	2,166	1,694
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	99,939	104,516	101,997	132,606
Interest income recognized, Total	1,835	1,328	4,639	7,784
Interest income recognized, Cash basis	1,316	776	3,011	6,146
Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	116,191	131,574	120,710	135,374
Interest income recognized, Total	1,539	1,643	4,799	5,002
Interest income recognized, Cash basis	618	681	1,962	1,900
Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	21,952	19,268	20,619	17,902
Interest income recognized, Total	231	219	656	540
Interest income recognized, Cash basis	66	81	179	182
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	24,429	33,666	26,521	36,560
Interest income recognized, Total	391	528	1,257	1,742
Interest income recognized, Cash basis	39	67	136	228
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	19,238	18,677	19,053	18,229
Interest income recognized, Total	188	177	547	517
Interest income recognized, Cash basis	$ 23	$ 44	$ 86	$ 145

XML

Fair Value Measurements - Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	$ 340,710	$ 308,175
Investment securities	11,159,509	9,156,932
Real estate loans held for sale	493,453	742,249
Other assets	79,539	92,129
Total assets	12,073,211	10,299,485
Trading account liabilities	233,006	203,464
Other liabilities	9,489	8,596
Total liabilities	242,495	212,060
U.S. Treasury and Federal Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	199,394	161,947
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	6,296	8,198
Government Issued or Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	10,714,048	8,731,123
Privately Issued Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	82	103
Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	49,876	50,316
Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	120,468	121,488
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	69,345	83,757
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	48,006	51,416
Investment securities	40,370	64,841
Total assets	88,376	116,257
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	40,370	64,841
Significant Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	292,704	256,759
Investment securities	11,069,181	9,041,672
Real estate loans held for sale	493,453	742,249
Other assets	61,707	74,733
Total assets	11,917,045	10,115,413
Trading account liabilities	233,006	203,464
Other liabilities	9,304	8,547
Total liabilities	242,310	212,011
Significant Observable Inputs (Level 2) [Member] | U.S. Treasury and Federal Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	199,394	161,947
Significant Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	6,296	8,198
Significant Observable Inputs (Level 2) [Member] | Government Issued or Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	10,714,048	8,731,123
Significant Observable Inputs (Level 2) [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	120,468	121,488
Significant Observable Inputs (Level 2) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	28,975	18,916
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	49,958	50,419
Other assets	17,832	17,396
Total assets	67,790	67,815
Other liabilities	185	49
Total liabilities	185	49
Significant Unobservable Inputs (Level 3) [Member] | Privately Issued Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	82	103
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	$ 49,876	$ 50,316

XML

Shareholders' Equity - Issued and Outstanding Preferred Stock (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Carrying value	$ 1,231,500	$ 1,231,500
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	230,000	230,000
Preferred stock, shares outstanding	230,000	230,000
Carrying value	$ 230,000	$ 230,000
Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	151,500	151,500
Preferred stock, shares outstanding	151,500	151,500
Carrying value	$ 151,500	$ 151,500
Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	50,000	50,000
Preferred stock, shares outstanding	50,000	50,000
Carrying value	$ 500,000	$ 500,000
Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	350,000	350,000
Preferred stock, shares outstanding	350,000	350,000
Carrying value	$ 350,000	$ 350,000

XML

Segment Information - Information about Company's Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Net income (loss)	$ 280,401	$ 275,344	$ 808,702	$ 788,697
Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	23,995	25,038	74,160	73,763
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	108,422	100,705	312,926	303,637
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)	85,312	78,676	250,501	230,254
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)	5,113	12,495	21,823	38,898
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	21,150	22,749	75,462	64,680
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	64,721	72,057	202,415	214,064
All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)	(28,312)	(36,376)	(128,585)	(136,599)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	1,132,526	1,120,170	3,412,472	3,322,236
Operating Segments [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	112,650	113,425	332,341	337,929
Operating Segments [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	270,554	247,282	774,392	748,978
Operating Segments [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Total revenues	181,478	170,772	535,909	500,814
Operating Segments [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Total revenues	13,773	24,835	49,724	79,404
Operating Segments [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	99,518	104,092	310,843	299,237
Operating Segments [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	308,520	316,052	914,484	934,386
Operating Segments [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Total revenues	146,033	143,712	494,779	421,488
Intersegment Activity Eliminated in Consolidated Totals [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	1,167	1,082	3,334	3,359
Intersegment Activity Eliminated in Consolidated Totals [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	1,097	1,281	3,281	3,834
Intersegment Activity Eliminated in Consolidated Totals [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Total revenues	469	442	978	1,315
Intersegment Activity Eliminated in Consolidated Totals [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Total revenues	(5,365)	(5,478)	(16,184)	(15,799)
Intersegment Activity Eliminated in Consolidated Totals [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	12,918	12,875	36,741	34,395
Intersegment Activity Eliminated in Consolidated Totals [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	3,292	3,735	9,688	11,137
Intersegment Activity Eliminated in Consolidated Totals [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Total revenues	$ (13,578)	$ (13,937)	$ (37,838)	$ (38,241)

XML

Loans and Leases and the Allowance for Credit Losses - Changes in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 929,987	$ 917,666	$ 919,562	$ 916,676
Provision for credit losses	44,000	29,000	112,000	91,000
Net charge-offs
Charge-offs	(53,141)	(43,092)	(133,579)	(132,369)
Recoveries	12,952	15,059	35,815	43,326
Net charge-offs	(40,189)	(28,033)	(97,764)	(89,043)
Ending balance	933,798	918,633	933,798	918,633
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	286,750	292,251	288,038	273,383
Provision for credit losses	21,507	2,373	32,686	40,527
Net charge-offs
Charge-offs	(26,912)	(15,921)	(46,990)	(44,872)
Recoveries	5,322	7,849	12,933	17,514
Net charge-offs	(21,590)	(8,072)	(34,057)	(27,358)
Ending balance	286,667	286,552	286,667	286,552
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	311,294	311,254	307,927	324,978
Provision for credit losses	1,879	8,046	13,769	(4,067)
Net charge-offs
Charge-offs	(2,203)	(1,666)	(12,352)	(7,966)
Recoveries	2,119	1,267	3,745	5,956
Net charge-offs	(84)	(399)	(8,607)	(2,010)
Ending balance	313,089	318,901	313,089	318,901
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	60,294	72,404	61,910	78,656
Provision for credit losses	(3,155)	(3,187)	(571)	(916)
Net charge-offs
Charge-offs	(3,268)	(4,193)	(9,695)	(17,124)
Recoveries	1,125	2,498	3,352	6,906
Net charge-offs	(2,143)	(1,695)	(6,343)	(10,218)
Ending balance	54,996	67,522	54,996	67,522
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	194,238	165,871	186,033	164,644
Provision for credit losses	24,448	21,815	65,038	54,632
Net charge-offs
Charge-offs	(20,758)	(21,312)	(64,542)	(62,407)
Recoveries	4,386	3,445	15,785	12,950
Net charge-offs	(16,372)	(17,867)	(48,757)	(49,457)
Ending balance	202,314	169,819	202,314	169,819
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	77,411	75,886	75,654	75,015
Provision for credit losses	(679)	(47)	1,078	824
Net charge-offs
Ending balance	$ 76,732	$ 75,839	$ 76,732	$ 75,839

XML

Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at September 30, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at September 30, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	340,710		48,006		292,704		—
Investment securities available for sale:
U.S. Treasury and federal agencies		199,394		—		199,394		—
Obligations of states and political subdivisions		6,296		—		6,296		—
Mortgage-backed securities:
Government issued or guaranteed		10,714,048		—		10,714,048		—
Privately issued		82		—		—		82
Collateralized debt obligations		49,876		—		—		49,876
Other debt securities		120,468		—		120,468		—
Equity securities		69,345		40,370		28,975		—
		11,159,509		40,370		11,069,181		49,958
Real estate loans held for sale		493,453		—		493,453		—
Other assets (b)		79,539		—		61,707		17,832
Total assets	$	12,073,211		88,376		11,917,045		67,790
Trading account liabilities	$	233,006		—		233,006		—
Other liabilities (b)		9,489		—		9,304		185
Total liabilities	$	242,495		—		242,310		185
	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2015 and the year ended December 31, 2014.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2015	$	88		$	50,483		$	11,206
Total gains (losses) realized/unrealized:
Included in earnings		—			—			21,709	(a)
Included in other comprehensive income		—			(472	)(d)		—
Settlements		(6	)		(135	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,268	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,488	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2014	$	119		$	56,200		$	22,023
Total gains (losses) realized/unrealized:
Included in earnings		—			—			9,657	(a)
Included in other comprehensive income		—			2,201	(d)		—
Settlements		(7	)		(3,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,188	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	12,421	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			67,611	(a)
Included in other comprehensive income		—			5,153	(d)		—
Settlements		(21	)		(5,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(67,311	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,965	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			63,557	(a)
Included in other comprehensive income		272	(d)		11,333	(d)		—
Settlements		(2,010	)		(19,608	)		—
Transfers in and/or out of Level 3 (b)		—			—			(51,006	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	17,773	(a)

(a) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(b) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(c) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(d) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at September 30, 2015 and December 31, 2014:

	Fair value at September 30, 2015		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	82		Two independent pricing quotes		—		—
Collateralized debt obligations		49,876		Discounted cash flow		Probability of default		12%-57% (33%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,647		Discounted cash flow		Commitment expirations		0%-66% (38%)
	Fair value at December 31, 2014		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103		Two independent pricing quotes		—		—
Collateralized debt obligations		50,316		Discounted cash flow		Probability of default		12%-57% (36%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,347		Discounted cash flow		Commitment expirations		0%-96% (17%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	September 30, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,249,704		$	1,249,704		$	1,193,831	$	55,873		$	—
Interest-bearing deposits at banks		4,713,266			4,713,266			—		4,713,266			—
Trading account assets		340,710			340,710			48,006		292,704			—
Investment securities		14,494,539			14,521,740			40,370		14,283,075			198,295
Loans and leases:
Commercial loans and leases		20,233,177			19,920,031			—		—			19,920,031
Commercial real estate loans		28,720,537			28,633,973			—		71,357			28,562,616
Residential real estate loans		8,211,062			8,302,630			—		4,918,613			3,384,017
Consumer loans		11,375,472			11,280,973			—		—			11,280,973
Allowance for credit losses		(933,798	)		—			—		—			—
Loans and leases, net		67,606,450			68,137,607			—		4,989,970			63,147,637
Accrued interest receivable		242,935			242,935			—		242,935			—
Financial liabilities:
Noninterest-bearing deposits	$	(28,189,330	)	$	(28,189,330	)	$	—	$	(28,189,330	)	$	—
Savings deposits and NOW accounts		(41,757,661	)		(41,757,661	)		—		(41,757,661	)		—
Time deposits		(2,791,367	)		(2,810,224	)		—		(2,810,224	)		—
Deposits at Cayman Islands office		(206,185	)		(206,185	)		—		(206,185	)		—
Short-term borrowings		(173,783	)		(173,783	)		—		(173,783	)		—
Long-term borrowings		(10,174,289	)		(10,219,180	)		—		(10,219,180	)		—
Accrued interest payable		(73,475	)		(73,475	)		—		(73,475	)		—
Trading account liabilities		(233,006	)		(233,006	)		—		(233,006	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,647		$	17,647		$	—	$	—		$	17,647
Commitments to sell real estate loans		(8,379	)		(8,379	)		—		(8,379	)		—
Other credit-related commitments		(118,656	)		(118,656	)		—		—			(118,656	)
Interest rate swap agreements used for interest rate risk management		60,782			60,782			—		60,782			—

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management		73,251			73,251			—		73,251			—

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Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014
Segment Reporting Information [Line Items]
Average Assets	$ 97,345	$ 92,143	$ 89,952
Business Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	5,321	5,281	5,287
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	24,041	22,892	22,805
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Average Assets	18,632	17,370	17,187
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Average Assets	23,153	20,798	20,306
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	3,007	3,076	3,016
Retail Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	10,912	10,449	10,348
All Other [Member]
Segment Reporting Information [Line Items]
Average Assets	$ 12,279	$ 12,277	$ 11,003

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Fair Value Measurements - Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities) (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Financial assets:
Cash and cash equivalents	$ 1,249,704		$ 1,373,357	$ 1,523,643		$ 1,672,934
Interest-bearing deposits at banks	4,713,266		6,470,867
Trading account assets	340,710		308,175
Investment securities	14,494,539		12,993,542
Loans and leases:
Allowance for credit losses	(933,798)	$ (929,987)	(919,562)	$ (918,633)	$ (917,666)	$ (916,676)
Loans and leases, net	67,606,450		65,749,394
Financial liabilities:
Noninterest-bearing deposits	(28,189,330)		(26,947,880)
Time deposits	(2,791,367)		(3,063,973)
Deposits at Cayman Islands office	(206,185)		(176,582)
Short-term borrowings	(173,783)		(192,676)
Long-term borrowings	(10,174,289)		(9,006,959)
Trading account liabilities	(233,006)		(203,464)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash and cash equivalents	1,193,831		1,296,923
Trading account assets	48,006		51,416
Investment securities	40,370		64,841
Significant Observable Inputs (Level 2) [Member]
Financial assets:
Cash and cash equivalents	55,873		76,434
Interest-bearing deposits at banks	4,713,266		6,470,867
Trading account assets	292,704		256,759
Investment securities	14,283,075		12,750,396
Loans and leases:
Commercial real estate loans	71,357		307,667
Residential real estate loans	4,918,613		5,189,086
Loans and leases, net	4,989,970		5,496,753
Accrued interest receivable	242,935		227,348
Financial liabilities:
Noninterest-bearing deposits	(28,189,330)		(26,947,880)
Savings deposits and NOW accounts	(41,757,661)		(43,393,618)
Time deposits	(2,810,224)		(3,086,126)
Deposits at Cayman Islands office	(206,185)		(176,582)
Short-term borrowings	(173,783)		(192,676)
Long-term borrowings	(10,219,180)		(9,139,789)
Accrued interest payable	(73,475)		(63,372)
Trading account liabilities	(233,006)		(203,464)
Other financial instruments:
Commitments to sell real estate loans	(8,379)		(7,065)
Interest rate swap agreements used for interest rate risk management	60,782		73,251
Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Investment securities	198,295		208,719
Loans and leases:
Commercial loans and leases	19,920,031		19,188,574
Commercial real estate loans	28,562,616		27,180,151
Residential real estate loans	3,384,017		3,539,970
Consumer loans	11,280,973		10,909,623
Loans and leases, net	63,147,637		60,818,318
Other financial instruments:
Commitments to originate real estate loans for sale	17,647		17,347
Other credit-related commitments	(118,656)		(119,079)
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	1,249,704		1,373,357
Interest-bearing deposits at banks	4,713,266		6,470,867
Trading account assets	340,710		308,175
Investment securities	14,494,539		12,993,542
Loans and leases:
Commercial loans and leases	20,233,177		19,461,292
Commercial real estate loans	28,720,537		27,567,569
Residential real estate loans	8,211,062		8,657,301
Consumer loans	11,375,472		10,982,794
Allowance for credit losses	(933,798)		(919,562)
Loans and leases, net	67,606,450		65,749,394
Accrued interest receivable	242,935		227,348
Financial liabilities:
Noninterest-bearing deposits	(28,189,330)		(26,947,880)
Savings deposits and NOW accounts	(41,757,661)		(43,393,618)
Time deposits	(2,791,367)		(3,063,973)
Deposits at Cayman Islands office	(206,185)		(176,582)
Short-term borrowings	(173,783)		(192,676)
Long-term borrowings	(10,174,289)		(9,006,959)
Accrued interest payable	(73,475)		(63,372)
Trading account liabilities	(233,006)		(203,464)
Other financial instruments:
Commitments to originate real estate loans for sale	17,647		17,347
Commitments to sell real estate loans	(8,379)		(7,065)
Other credit-related commitments	(118,656)		(119,079)
Interest rate swap agreements used for interest rate risk management	60,782		73,251
Estimate Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,249,704		1,373,357
Interest-bearing deposits at banks	4,713,266		6,470,867
Trading account assets	340,710		308,175
Investment securities	14,521,740		13,023,956
Loans and leases:
Commercial loans and leases	19,920,031		19,188,574
Commercial real estate loans	28,633,973		27,487,818
Residential real estate loans	8,302,630		8,729,056
Consumer loans	11,280,973		10,909,623
Loans and leases, net	68,137,607		66,315,071
Accrued interest receivable	242,935		227,348
Financial liabilities:
Noninterest-bearing deposits	(28,189,330)		(26,947,880)
Savings deposits and NOW accounts	(41,757,661)		(43,393,618)
Time deposits	(2,810,224)		(3,086,126)
Deposits at Cayman Islands office	(206,185)		(176,582)
Short-term borrowings	(173,783)		(192,676)
Long-term borrowings	(10,219,180)		(9,139,789)
Accrued interest payable	(73,475)		(63,372)
Trading account liabilities	(233,006)		(203,464)
Other financial instruments:
Commitments to originate real estate loans for sale	17,647		17,347
Commitments to sell real estate loans	(8,379)		(7,065)
Other credit-related commitments	(118,656)		(119,079)
Interest rate swap agreements used for interest rate risk management	$ 60,782		$ 73,251

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Pension Plans and Other Postretirement Benefits - Net Periodic Benefit Cost for Defined Benefit Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5,916	$ 5,130	$ 17,748	$ 15,390
Interest cost on projected benefit obligation	17,754	17,290	53,261	51,871
Expected return on plan assets	(23,527)	(22,892)	(70,578)	(68,676)
Amortization of prior service credit	(1,501)	(1,638)	(4,504)	(4,914)
Amortization of net actuarial loss	11,207	3,624	33,619	10,871
Net periodic benefit cost	9,849	1,514	29,546	4,542
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	188	151	562	453
Interest cost on projected benefit obligation	651	695	1,953	2,084
Amortization of prior service credit	(340)	(340)	(1,019)	(1,019)
Amortization of net actuarial loss	26		79
Net periodic benefit cost	$ 525	$ 506	$ 1,575	$ 1,518

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Segment Information - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Net income	$ 280,401		$ 275,344		$ 808,702	$ 788,697
Impact of Changes [Member]
Segment Reporting Information [Line Items]
Revenues		$ 6,000		$ 12,000
Net income		$ 3,000		$ 5,000
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Decrease in revenues			5,000			13,000
Decrease in net income			2,000			5,000
Net income	21,150		22,749		75,462	64,680
Residential Mortgage Banking [Member] | Impact of Changes [Member]
Segment Reporting Information [Line Items]
Net income			(2,272)			(7,464)
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Increase in revenues			5,000			13,000
Increase in net income			2,000			5,000
Net income	$ 85,312		78,676		$ 250,501	230,254
Commercial Real Estate [Member] | Impact of Changes [Member]
Segment Reporting Information [Line Items]
Net income			$ 95			$ (414)

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Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Bayview Lending Group and Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Outstanding principal balances of mortgage servicing rights	$ 4,300		$ 4,300		$ 4,800
Revenues from servicing	$ 6	$ 6	$ 17	$ 20
Bayview Lending Group [Member]
Schedule of Equity Method Investments [Line Items]
Minority interest in Bayview Lending Group LLC	20.00%		20.00%
Carrying value of minority interest investment in Bayview Lending Group LLC	$ 33		$ 33
Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Revenues from servicing	26	$ 29	91	$ 82
Outstanding principal balances of residential mortgage loans from Bayview Financial	39,500		39,500		41,300
Investment securities in held-to-maturity portfolio securitized by Bayview Financial	$ 187		$ 187		$ 202

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Segment Information - Summary of Prior Period Financial Information Restated (Detail) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended	9 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting Information [Line Items]
Net income (loss)	$ 280,401		$ 275,344		$ 808,702	$ 788,697
Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	23,995		25,038		74,160	73,763
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	108,422		100,705		312,926	303,637
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)	85,312		78,676		250,501	230,254
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)	5,113		12,495		21,823	38,898
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	21,150		22,749		75,462	64,680
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	64,721		72,057		202,415	214,064
All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)	$ (28,312)		(36,376)		$ (128,585)	(136,599)
Net Income (Loss) as Previously Reported [Member]
Segment Reporting Information [Line Items]
Net income (loss)			275,344			788,697
Net Income (Loss) as Previously Reported [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			30,905			87,263
Net Income (Loss) as Previously Reported [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			101,740			306,863
Net Income (Loss) as Previously Reported [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)			78,581			230,668
Net Income (Loss) as Previously Reported [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)			8,279			34,538
Net Income (Loss) as Previously Reported [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			25,021			72,144
Net Income (Loss) as Previously Reported [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			32,901			94,646
Net Income (Loss) as Previously Reported [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)			(2,083)			(37,425)
Impact of Changes [Member]
Segment Reporting Information [Line Items]
Net income (loss)		$ 3,000		$ 5,000
Impact of Changes [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			(5,867)			(13,500)
Impact of Changes [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			(1,035)			(3,226)
Impact of Changes [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)			95			(414)
Impact of Changes [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)			4,216			4,360
Impact of Changes [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			(2,272)			(7,464)
Impact of Changes [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)			39,156			119,418
Impact of Changes [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)			$ (34,293)			$ (99,174)

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Fair Value Measurements - Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Assets and Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 11,206	$ 22,023	$ 17,347	$ 3,941
Total gains (losses) realized/unrealized:
Included in earnings	21,709	9,657	67,611	63,557
Transfers in and/or out of Level 3	(15,268)	(15,188)	(67,311)	(51,006)
Ending Balance	17,647	16,492	17,647	16,492
Changes in unrealized gains included in earnings related to assets still held at end of period	15,488	12,421	15,965	17,773
Privately Issued [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	88	119	103	1,850
Total gains (losses) realized/unrealized:
Included in other comprehensive income				272
Settlements	(6)	(7)	(21)	(2,010)
Ending Balance	82	112	82	112
Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	50,483	56,200	50,316	63,083
Total gains (losses) realized/unrealized:
Included in other comprehensive income	(472)	2,201	5,153	11,333
Settlements	(135)	(3,593)	(5,593)	(19,608)
Ending Balance	$ 49,876	$ 54,808	$ 49,876	$ 54,808

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Significant accounting policies (Policies)

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Consolidation

The consolidated financial statements of M&T Bank Corporation (“M&T”) and subsidiaries (“the Company”) were compiled in accordance with generally accepted accounting principles (“GAAP”) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2014 Annual Report. Additionally, effective January 1, 2015 the Company made an accounting policy election in accordance with amended accounting guidance issued by the Financial Accounting Standards Board in January 2014 to account for investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The adoption of the amended guidance did not have a significant effect on the Company’s financial position or results of operations, but did result in the restatement of the consolidated statement of income for the three months and nine months ended September 30, 2014 to remove $14 million and $39 million, respectively, of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The cumulative effect adjustment associated with adopting the amended guidance was not material as of the beginning of any period presented in these consolidated financial statements. See note 11 for information regarding the Company’s investments in qualified affordable housing projects.

In the opinion of management, all adjustments necessary for a fair presentation have been made and, except as described above, were all of a normal recurring nature.

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Loans and Leases and the Allowance for Credit Losses - Allocation of Allowance for Credit Losses on Basis of Company's Impairment Methodology (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 82,358		$ 81,714
Allowance for credit losses	768,995		753,052
Allowance for credit losses	933,798	$ 929,987	919,562	$ 918,633	$ 917,666	$ 916,676
Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	5,713		9,142
Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	857,066		843,908
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	76,732	$ 77,411	75,654	$ 75,839	$ 75,886	$ 75,015
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	35,195		31,779
Allowance for credit losses	250,271		251,607
Commercial, Financial, Leasing, etc. [Member] | Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,201		4,652
Commercial, Financial, Leasing, etc. [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	286,667		288,038
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	19,743		15,490
Allowance for credit losses	292,214		291,244
Commercial Real Estate [Member] | Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,132		1,193
Commercial Real Estate [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	313,089		307,927
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	13,275		14,703
Allowance for credit losses	39,804		45,061
Residential Real Estate [Member] | Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,917		2,146
Residential Real Estate [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	54,996		61,910
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	14,145		19,742
Allowance for credit losses	186,706		165,140
Consumer Loans [Member] | Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,463		1,151
Consumer Loans [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 202,314		$ 186,033

XML

Loans and Leases and the Allowance for Credit Losses - Outstanding Principal Balance and Carrying Amount of Loans that is Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Outstanding principal and carrying value of acquired loans recorded at fair value
Outstanding principal balance	$ 2,410,454	$ 3,070,268
Carrying amount	2,029,961	2,596,545
Commercial, Financial, Leasing, etc. [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	103,583	247,820
Commercial Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	728,376	961,828
Residential Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	385,885	453,360
Consumer [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	$ 812,117	$ 933,537

XML

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Maximum credit risk for recourse associated with loans sold under Federal National Mortgage Association Delegated Underwriting and Servicing program	$ 2,500,000,000	$ 2,400,000,000
Range of reasonably possible losses, minimum	0
Range of reasonably possible losses, maximum	$ 40,000,000

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Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Aug. 27, 2012
Business Acquisition [Line Items]
Purchase consideration per common share			$ 0.08403
Percentage of total equity consideration			60.00%
Percentage of total cash consideration			40.00%
Total consideration to be paid	$ 5,300,000
Assets	97,797,062	$ 96,685,535
Loans	67,606,450	65,749,394
Investment securities	14,494,539	12,993,542
Liabilities	84,875,128	84,349,639
Deposits	72,944,543	$ 73,582,053
Hudson City [Member]
Business Acquisition [Line Items]
Assets	35,100,000
Loans	19,200,000
Investment securities	8,300,000
Liabilities	30,300,000
Deposits	$ 17,900,000

XML

Loans and Leases and the Allowance for Credit Losses - Loan Modification Activities that were Considered Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Modification	Sep. 30, 2014 USD ($) Modification	Sep. 30, 2015 USD ($) Modification	Sep. 30, 2014 USD ($) Modification
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	245	154	613	590
Pre-modification, Recorded Investment	$ 23,691	$ 9,009	$ 139,888	$ 98,923
Post-modification, Recorded investment	23,657	8,388	137,646	98,185
Financial effects of modification, Recorded investment	(34)	(621)	(2,242)	(738)
Financial Effects of Modification, Interest	$ (557)	$ (505)	$ (1,406)	$ (2,385)
Principal Deferral [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	36	15	87	66
Pre-modification, Recorded Investment	$ 7,893	$ 1,305	$ 25,483	$ 20,673
Post-modification, Recorded investment	7,419	1,300	24,331	20,499
Financial effects of modification, Recorded investment	$ (474)	$ (5)	$ (1,152)	$ (174)
Principal Deferral [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	15	8	37	32
Pre-modification, Recorded Investment	$ 4,230	$ 2,081	$ 47,005	$ 17,452
Post-modification, Recorded investment	4,208	2,068	45,569	17,384
Financial effects of modification, Recorded investment	$ (22)	$ (13)	$ (1,436)	$ (68)
Principal Deferral [Member] | Residential Builder and Developer [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification		1	2	2
Pre-modification, Recorded Investment		$ 241	$ 10,650	$ 1,639
Post-modification, Recorded investment		$ 241	10,598	$ 1,639
Financial effects of modification, Recorded investment			$ (52)
Principal Deferral [Member] | Other Commercial Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	3	1	3	4
Pre-modification, Recorded Investment	$ 296	$ 145	$ 296	$ 6,703
Post-modification, Recorded investment	390	142	390	6,611
Financial effects of modification, Recorded investment	$ 94	$ (3)	$ 94	$ (92)
Principal Deferral [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	31	3	50	19
Pre-modification, Recorded Investment	$ 3,540	$ 98	$ 4,954	$ 1,842
Post-modification, Recorded investment	3,743	97	5,239	1,926
Financial effects of modification, Recorded investment	$ 203	$ (1)	$ 285	$ 84
Principal Deferral [Member] | Residential Alt-A [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	1		2	5
Pre-modification, Recorded Investment	$ 265		$ 426	$ 828
Post-modification, Recorded investment	276		437	900
Financial effects of modification, Recorded investment	$ 11		$ 11	$ 72
Principal Deferral [Member] | Home Equity Lines and Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	4		6	3
Pre-modification, Recorded Investment	$ 727		$ 1,946	$ 280
Post-modification, Recorded investment	$ 727		$ 1,946	$ 280
Principal Deferral [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	35	45	133	168
Pre-modification, Recorded Investment	$ 316	$ 1,003	$ 1,234	$ 2,599
Post-modification, Recorded investment	$ 316	$ 1,003	$ 1,234	$ 2,599
Principal Deferral [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	24	6	73	21
Pre-modification, Recorded Investment	$ 352	$ 48	$ 1,418	$ 141
Post-modification, Recorded investment	$ 352	$ 48	$ 1,418	$ 141
Other [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification			2	1
Pre-modification, Recorded Investment			$ 8,991	$ 19,593
Post-modification, Recorded investment			8,883	$ 19,593
Financial effects of modification, Recorded investment			$ (108)
Other [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification		1		1
Pre-modification, Recorded Investment		$ 650		$ 650
Financial effects of modification, Recorded investment		$ (650)		$ (650)
Other [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	1		1	1
Pre-modification, Recorded Investment	$ 267		$ 267	$ 188
Post-modification, Recorded investment	$ 267		$ 267	$ 188
Other [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	15	7	38	26
Pre-modification, Recorded Investment	$ 93	$ 96	$ 134	$ 204
Post-modification, Recorded investment	$ 93	$ 96	$ 134	$ 204
Other [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	5		12	1
Pre-modification, Recorded Investment	$ 33		$ 113	$ 45
Post-modification, Recorded investment	$ 33		$ 113	$ 45
Combination of Concession Types [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	1		6	5
Pre-modification, Recorded Investment	$ 31		$ 25,075	$ 9,836
Post-modification, Recorded investment	31		24,884	9,766
Financial effects of modification, Recorded investment			(191)	(70)
Financial Effects of Modification, Interest	$ (6)		$ (245)	$ (14)
Combination of Concession Types [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	1	4	6	6
Pre-modification, Recorded Investment	$ 1,156	$ 483	$ 3,238	$ 892
Post-modification, Recorded investment	1,169	478	3,242	940
Financial effects of modification, Recorded investment	13	(5)	4	48
Financial Effects of Modification, Interest	$ (54)	$ (95)	$ (159)	$ (208)
Combination of Concession Types [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	10	8	22	30
Pre-modification, Recorded Investment	$ 1,296	$ 1,100	$ 2,551	$ 4,211
Post-modification, Recorded investment	1,380	1,136	2,795	4,287
Financial effects of modification, Recorded investment	84	36	244	76
Financial Effects of Modification, Interest	$ (178)	$ (135)	$ (356)	$ (483)
Combination of Concession Types [Member] | Residential Alt-A [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	4	3	7	19
Pre-modification, Recorded Investment	$ 605	$ 349	$ 1,239	$ 3,101
Post-modification, Recorded investment	662	369	1,298	3,134
Financial effects of modification, Recorded investment	57	20	59	33
Financial Effects of Modification, Interest	$ (91)	$ (64)	$ (121)	$ (345)
Combination of Concession Types [Member] | Home Equity Lines and Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	22	5	41	41
Pre-modification, Recorded Investment	$ 2,003	$ 519	$ 3,555	$ 4,147
Post-modification, Recorded investment	2,003	519	3,555	4,147
Financial Effects of Modification, Interest	$ (199)	$ (67)	$ (424)	$ (443)
Combination of Concession Types [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	25	19	42	65
Pre-modification, Recorded Investment	$ 471	$ 348	$ 693	$ 939
Post-modification, Recorded investment	471	348	693	939
Financial Effects of Modification, Interest	$ (17)	$ (21)	$ (28)	$ (83)
Combination of Concession Types [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	12	24	35	57
Pre-modification, Recorded Investment	$ 117	$ 511	$ 384	$ 1,883
Post-modification, Recorded investment	117	511	384	1,883
Financial Effects of Modification, Interest	$ (12)	$ (121)	$ (44)	$ (585)
Interest Rate Reduction [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification			1
Pre-modification, Recorded Investment			$ 99
Post-modification, Recorded investment			99
Financial Effects of Modification, Interest			$ (19)
Interest Rate Reduction [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification				1
Pre-modification, Recorded Investment				$ 255
Post-modification, Recorded investment				252
Financial effects of modification, Recorded investment				(3)
Financial Effects of Modification, Interest				$ (48)
Interest Rate Reduction [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification				1
Pre-modification, Recorded Investment				$ 98
Post-modification, Recorded investment				104
Financial effects of modification, Recorded investment				6
Financial Effects of Modification, Interest				$ (32)
Interest Rate Reduction [Member] | Home Equity Lines and Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification				5
Pre-modification, Recorded Investment				$ 341
Post-modification, Recorded investment				341
Financial Effects of Modification, Interest				$ (76)
Interest Rate Reduction [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification		3	7	6
Pre-modification, Recorded Investment		$ 30	$ 137	$ 90
Post-modification, Recorded investment		30	137	90
Financial Effects of Modification, Interest		$ (2)	$ (10)	$ (5)
Interest Rate Reduction [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification		1		4
Pre-modification, Recorded Investment		$ 2		$ 293
Post-modification, Recorded investment		$ 2		293
Financial Effects of Modification, Interest				$ (63)

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	$ 6,561	$ (649)	$ 8,115	$ (5,383)
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	4,120	132	6,552	1,214
Foreign Exchange and Other Option and Futures Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	2,441	(781)	1,563	(6,597)
Interest Rate Swap Agreements [Member] | Fixed Rate Long-Term Borrowings [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives in fair value hedging relationships, Derivatives	(2,719)	(16,792)	(12,469)	(26,627)
Derivatives in fair value hedging relationships, Hedged item	$ 2,382	$ 16,380	$ 11,495	$ 25,658

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Earnings Per Common Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	1.5	1.7	1.9	2.1

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Loans and Leases and the Allowance for Credit Losses - Impaired Loans and Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	$ 501,230	$ 498,575
Unpaid principal balance with related allowance	579,049	581,887
Related allowance	82,726	82,643
Recorded investment with no related allowance	278,400	263,880
Unpaid principal balance with no related allowance	377,625	371,907
Recorded investment	779,630	762,455
Unpaid principal balance	956,674	953,794
Related allowance	82,726	82,643
Commercial, Financial, Leasing, etc. [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	144,051	132,340
Unpaid principal balance with related allowance	166,877	165,146
Related allowance	35,195	31,779
Recorded investment with no related allowance	111,023	73,978
Unpaid principal balance with no related allowance	133,100	81,493
Recorded investment	255,074	206,318
Unpaid principal balance	299,977	246,639
Related allowance	35,195	31,779
Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	105,561	83,955
Unpaid principal balance with related allowance	122,369	96,209
Related allowance	18,932	14,121
Recorded investment with no related allowance	77,147	66,777
Unpaid principal balance with no related allowance	84,677	78,943
Recorded investment	182,708	150,732
Unpaid principal balance	207,046	175,152
Related allowance	18,932	14,121
Residential Builder and Developer [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	6,544	17,632
Unpaid principal balance with related allowance	10,276	22,044
Related allowance	788	805
Recorded investment with no related allowance	42,800	58,820
Unpaid principal balance with no related allowance	68,906	96,722
Recorded investment	49,344	76,452
Unpaid principal balance	79,182	118,766
Related allowance	788	805
Other Commercial Construction [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	2,445	5,480
Unpaid principal balance with related allowance	3,991	6,484
Related allowance	391	900
Recorded investment with no related allowance	10,307	20,738
Unpaid principal balance with no related allowance	28,480	41,035
Recorded investment	12,752	26,218
Unpaid principal balance	32,471	47,519
Related allowance	391	900
Residential [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	83,349	88,970
Unpaid principal balance with related allowance	101,367	107,343
Related allowance	4,775	4,296
Recorded investment with no related allowance	16,232	16,815
Unpaid principal balance with no related allowance	26,626	26,750
Recorded investment	99,581	105,785
Unpaid principal balance	127,993	134,093
Related allowance	4,775	4,296
Residential Alt-A [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	93,168	101,137
Unpaid principal balance with related allowance	107,075	114,565
Related allowance	8,500	11,000
Recorded investment with no related allowance	20,891	26,752
Unpaid principal balance with no related allowance	35,836	46,964
Recorded investment	114,059	127,889
Unpaid principal balance	142,911	161,529
Related allowance	8,500	11,000
Home Equity Lines and Loans [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	23,257	19,771
Unpaid principal balance with related allowance	24,239	20,806
Related allowance	3,541	6,213
Recorded investment	23,257	19,771
Unpaid principal balance	24,239	20,806
Related allowance	3,541	6,213
Automobile [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	23,985	30,317
Unpaid principal balance with related allowance	23,985	30,317
Related allowance	5,118	8,070
Recorded investment	23,985	30,317
Unpaid principal balance	23,985	30,317
Related allowance	5,118	8,070
Other [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment with related allowance	18,870	18,973
Unpaid principal balance with related allowance	18,870	18,973
Related allowance	5,486	5,459
Recorded investment	18,870	18,973
Unpaid principal balance	18,870	18,973
Related allowance	$ 5,486	$ 5,459

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Significant accounting policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Significant accounting policies

1. Significant accounting policies

The consolidated financial statements of M&T Bank Corporation (“M&T”) and subsidiaries (“the Company”) were compiled in accordance with generally accepted accounting principles (“GAAP”) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2014 Annual Report. Additionally, effective January 1, 2015 the Company made an accounting policy election in accordance with amended accounting guidance issued by the Financial Accounting Standards Board in January 2014 to account for investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method, the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The adoption of the amended guidance did not have a significant effect on the Company’s financial position or results of operations, but did result in the restatement of the consolidated statement of income for the three months and nine months ended September 30, 2014 to remove $14 million and $39 million, respectively, of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The cumulative effect adjustment associated with adopting the amended guidance was not material as of the beginning of any period presented in these consolidated financial statements. See note 11 for information regarding the Company’s investments in qualified affordable housing projects.

In the opinion of management, all adjustments necessary for a fair presentation have been made and, except as described above, were all of a normal recurring nature.

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Comprehensive Income - Components of Other Comprehensive Income (Loss) and Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ (297,843)	$ (105,797)
Unrealized holding gains (losses), net			(1,440)	121,301
Foreign currency translation adjustment			(735)	(2,314)
Unrealized Gains (losses) on cash flow hedges			1,453	(162)
Total other comprehensive income before reclassifications			(722)	118,825
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			2,417	2,540
Losses realized in net income			108
Accretion of net gain on terminated cash flow hedges			(102)
Amortization of prior service credit			(5,523)	(5,933)
Amortization of actuarial losses			33,698	10,871
Total reclassifications			30,598	7,478
Total gain (loss) during the period			29,876	126,303
Ending balance	$ (267,967)	$ 20,506	(267,967)	20,506
Beginning balance			116,849	41,638
Unrealized holding gains (losses), net			952	(47,615)
Foreign currency translation adjustment			214	810
Unrealized Gains (losses) on cash flow hedges			(568)	64
Total other comprehensive income before reclassifications			598	(46,741)
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			(944)	(997)
Losses realized in net income			(40)
Accretion of net gain on terminated cash flow hedges			40
Amortization of prior service credit			2,359	2,328
Amortization of actuarial losses			(14,368)	(4,267)
Total reclassifications			(12,953)	(2,936)
Total gain (loss) during the period			(12,355)	(49,677)
Ending balance	104,494	(8,039)	104,494	(8,039)
Beginning balance			(180,994)	(64,159)
Unrealized holding gains (losses), net			(488)	73,686
Foreign currency translation adjustment	(3)	(1,817)	(521)	(1,504)
Unrealized Gains (losses) on cash flow hedges			885	(98)
Total other comprehensive income before reclassifications			(124)	72,084
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			1,473	1,543
Losses realized in net income			68
Accretion of net gain on terminated cash flow hedges			(62)
Amortization of prior service credit			(3,164)	(3,605)
Amortization of actuarial losses			19,330	6,604
Total reclassifications			17,645	4,542
Total gain (loss) during the period			17,521	76,626
Ending balance	(163,473)	12,467	(163,473)	12,467
Investment Securities With OTTI [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			7,438	37,255
Unrealized holding gains (losses), net			9,699	12,038
Total other comprehensive income before reclassifications			9,699	12,038
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities				1
Total reclassifications				1
Total gain (loss) during the period			9,699	12,039
Ending balance	17,137	49,294	17,137	49,294
Investment Securities All Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			201,828	18,450
Unrealized holding gains (losses), net			(11,139)	109,263
Total other comprehensive income before reclassifications			(11,139)	109,263
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			2,417	2,539
Losses realized in net income			108
Total reclassifications			2,525	2,539
Total gain (loss) during the period			(8,614)	111,802
Ending balance	193,214	130,252	193,214	130,252
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(503,027)	(161,617)
Amortization of prior service credit			(5,523)	(5,933)
Amortization of actuarial losses			33,698	10,871
Total reclassifications			28,175	4,938
Total gain (loss) during the period			28,175	4,938
Ending balance	(474,852)	(156,679)	(474,852)	(156,679)
Beginning balance			(305,589)
Total gain (loss) during the period			16,166
Ending balance	(289,423)		(289,423)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(4,082)	115
Foreign currency translation adjustment			(735)	(2,314)
Unrealized Gains (losses) on cash flow hedges			1,453	(162)
Total other comprehensive income before reclassifications			718	(2,476)
Accretion of net gain on terminated cash flow hedges			(102)
Total reclassifications			(102)
Total gain (loss) during the period			616	(2,476)
Ending balance	$ (3,466)	$ (2,361)	$ (3,466)	$ (2,361)

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Loans and Leases and the Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual principal and interest payments	$ 149	$ 198
Purchased impaired loans as a percentage of total assets	Less than 1%
Commercial mortgage loans held for sale	$ 71	308
Loan delinquent period	90 days
Minimum delinquency period for loan level collectability analysis consumer mortgage	150 days
Amount of foreclosed residential real estate property held	$ 43	44
Loans secured by residential real estate that were in the process of foreclosure	151
Residential Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for sale	422	435
Carrying value of loans for which partial charge-off has been recognized	59	63
Mortgage loans, customer balance outstanding	20	27
Home Equity Loans and Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans for which partial charge-off has been recognized	20	18
Mortgage loans, customer balance outstanding	$ 28	$ 28

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Pension plans and other postretirement benefits (Tables)

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Net Periodic Pension Expense for Defined Benefit Plans

Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended September 30
	2015			2014			2015			2014
	(in thousands)
Service cost	$	5,916			5,130			188			151
Interest cost on projected benefit obligation		17,754			17,290			651			695
Expected return on plan assets		(23,527	)		(22,892	)		—			—
Amortization of prior service credit		(1,501	)		(1,638	)		(340	)		(340	)
Amortization of net actuarial loss		11,207			3,624			26			—
Net periodic benefit cost	$	9,849			1,514			525			506
	Pension benefits						Other postretirement benefits
	Nine months ended September 30
	2015			2014			2015			2014
	(in thousands)
Service cost	$	17,748			15,390			562			453
Interest cost on projected benefit obligation		53,261			51,871			1,953			2,084
Expected return on plan assets		(70,578	)		(68,676	)		—			—
Amortization of prior service credit		(4,504	)		(4,914	)		(1,019	)		(1,019	)
Amortization of net actuarial loss		33,619			10,871			79			—
Net periodic benefit cost	$	29,546			4,542			1,575			1,518

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Shareholders' equity (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Issued and Outstanding Preferred Stock

Issued and outstanding preferred stock of M&T as of September 30, 2015 and December 31, 2014 is presented below:

	Shares issued and outstanding		Carrying value
	(dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share		230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		151,500	$	151,500
Series D (b)
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000	$	500,000
Series E (c)
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E, $1,000 liquidation preference per share		350,000	$	350,000

(a) Dividends, if declared, are paid at 6.375%. Warrants to purchase M&T common stock at $73.86 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 719,175 at September 30, 2015 and 721,490 at December 31, 2014.

(b) Dividends, if declared, are paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate (“LIBOR”) plus 361 basis points (hundredths of one percent). The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

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Shareholders' Equity - Issued and Outstanding Preferred Stock (Parenthetical) (Detail) - $ / shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock dividend rate	6.375%
Exercise price of each class of warrants or rights outstanding	$ 73.86
Warrants and rights outstanding	719,175	721,490
Warrants, year of expiration	2018
Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 10,000	10,000
Preferred stock dividend rate	6.875%
Preferred Stock, Redemption Feature, Redemption Term	90 days
Preferred shares redemption date	Jun. 15, 2016
Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock dividend rate	6.45%
Preferred Stock, Redemption Feature, Redemption Term	90 days
Preferred shares redemption date	Feb. 15, 2024
Date of change in the dividend rate	Feb. 14, 2024
London Interbank offered rate plus basis points	3.61%

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Loans and Leases and the Allowance for Credit Losses - Summary of Changes in Accretable Yield for Acquired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Purchased Impaired [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	$ 77,624	$ 26,082	$ 76,518	$ 37,230
Interest income	(5,865)	(4,149)	(16,843)	(15,583)
Reclassifications from nonaccretable balance	47	129	12,131	415
Balance at end of period	71,806	22,062	71,806	22,062
Other Acquired [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	344,989	450,970	397,379	538,633
Interest income	(37,396)	(39,019)	(118,697)	(135,105)
Reclassifications from nonaccretable balance	769	9,673	27,792	10,448
Other	4,697	1,870	6,585	9,518
Balance at end of period	$ 313,059	$ 423,494	$ 313,059	$ 423,494

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Earnings per common share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computations of Basic Earnings Per Common Share

The computations of basic earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2015			2014			2015			2014
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	280,401			275,344		$	808,702			788,697
Less: Preferred stock dividends (a)		(20,318	)		(20,443	)		(60,953	)		(55,560	)
Net income available to common equity		260,083			254,901			747,749			733,137
Less: Income attributable to unvested stock-based compensation awards		(2,746	)		(2,996	)		(8,122	)		(8,830	)
Net income available to common shareholders	$	257,337			251,905		$	739,627			724,307
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		134,049			132,832			133,805			132,372
Less: Unvested stock-based compensation awards		(1,419	)		(1,567	)		(1,458	)		(1,590	)
Weighted-average shares outstanding		132,630			131,265			132,347			130,782
Basic earnings per common share	$	1.94			1.92		$	5.59			5.54

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

Computations of Diluted Earnings Per Common Share

The computations of diluted earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2015			2014			2015			2014
	(in thousands, except per share)
Net income available to common equity	$	260,083			254,901		$	747,749			733,137
Less: Income attributable to unvested stock-based compensation awards		(2,737	)		(2,984	)		(8,093	)		(8,793	)
Net income available to common shareholders	$	257,346			251,917		$	739,656			724,344
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		134,049			132,832			133,805			132,372
Less: Unvested stock-based compensation awards		(1,419	)		(1,567	)		(1,458	)		(1,590	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		746			863			742			916
Adjusted weighted-average shares outstanding		133,376			132,128			133,089			131,698
Diluted earnings per common share	$	1.93			1.91		$	5.56			5.50

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Comprehensive income (Tables)

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Components of Other Comprehensive Income (Loss) and Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net Income

The following table displays the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:

	Investment Securities
	With OTTI (a)		All other			Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2015	$	7,438		201,828			(503,027	)		(4,082	)	$	(297,843	)		116,849		$	(180,994	)
Other comprehensive income before reclassifications:
Unrealized holding gains (losses), net		9,699		(11,139	)		—			—			(1,440	)		952			(488	)
Foreign currency translation adjustment		—		—			—			(735	)		(735	)		214			(521	)
Gains on cash flow hedges		—		—			—			1,453			1,453			(568	)		885
Total other comprehensive income before reclassifications		9,699		(11,139	)		—			718			(722	)		598			(124	)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		—		2,417			—			—			2,417	(b)		(944	)		1,473
Losses realized in net income		—		108			—			—			108	(c)		(40	)		68
Accretion of net gain on terminated cash flow hedges		—		—			—			(102	)		(102	)(d)		40			(62	)
Amortization of prior service credit		—		—			(5,523	)		—			(5,523	)(e)		2,359			(3,164	)
Amortization of actuarial losses		—		—			33,698			—			33,698	(e)		(14,368	)		19,330
Total reclassifications		—		2,525			28,175			(102	)		30,598			(12,953	)		17,645
Total gain (loss) during the period		9,699		(8,614	)		28,175			616			29,876			(12,355	)		17,521
Balance – September 30, 2015	$	17,137		193,214			(474,852	)		(3,466	)	$	(267,967	)		104,494		$	(163,473	)

	Investment Securities
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2014	$	37,255		18,450		(161,617	)		115		$	(105,797	)		41,638		$	(64,159	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		12,038		109,263		—			—			121,301			(47,615	)		73,686
Foreign currency translation adjustment		—		—		—			(2,314	)		(2,314	)		810			(1,504	)
Unrealized losses on cash flow hedges		—		—		—			(162	)		(162	)		64			(98	)
Total other comprehensive income before reclassifications		12,038		109,263		—			(2,476	)		118,825			(46,741	)		72,084
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		1		2,539		—			—			2,540	(b)		(997	)		1,543
Amortization of prior service credit		—		—		(5,933	)		—			(5,933	)(e)		2,328			(3,605	)
Amortization of actuarial losses		—		—		10,871			—			10,871	(e)		(4,267	)		6,604
Total reclassifications		1		2,539		4,938			—			7,478			(2,936	)		4,542
Total gain (loss) during the period		12,039		111,802		4,938			(2,476	)		126,303			(49,677	)		76,626
Balance – September 30, 2014	$	49,294		130,252		(156,679	)		(2,361	)	$	20,506			(8,039	)	$	12,467

(a) Other-than-temporary impairment

(b) Included in interest income

(c) Included in loss on bank investment securities

(d) Included in interest expense

(e) Included in salaries and employee benefits expense

Accumulated Other Comprehensive Income (Loss), Net

Accumulated other comprehensive income (loss), net consisted of the following:

	Investment securities					Defined benefit
	With OTTI		All other			plans			Other			Total
	(in thousands)
Balance – December 31, 2014	$	4,518		122,683			(305,589	)		(2,606	)	$	(180,994	)
Net gain (loss) during period		5,926		(4,873	)		16,166			302			17,521
Balance – September 30, 2015	$	10,444		117,810			(289,423	)		(2,304	)	$	(163,473	)

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Common stock per share dividend amount	$ 0.70	$ 0.70	$ 2.10	$ 2.10
Common Stock [Member] | Series A Warrants [Member]
Exercise of warrants into shares of common stock	2,315	395,905	2,315	395,905
Exercise of warrants into shares of common stock			904	156,521
Retained Earnings [Member]
Common stock per share dividend amount			$ 2.10	$ 2.10

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Derivative financial instruments (Tables)

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Information about Interest Rate Swap Agreements

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional amount		Average maturity		Weighted- average rate
					Fixed			Variable
	(in thousands)		(in years)
September 30, 2015
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		1.9		4.42	%		1.29	%
December 31, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.7		4.42	%		1.19	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset derivatives				Liability derivatives
	Fair value				Fair value
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	60,782		73,251	$	—		—
Commitments to sell real estate loans (a)		899		728		5,142		4,217
		61,681		73,979		5,142		4,217
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		17,832		17,396		185		49
Commitments to sell real estate loans (a)		26		754		4,162		4,330
Trading:
Interest rate contracts (b)		268,332		215,614		221,626		173,513
Foreign exchange and other option and futures contracts (b)		13,404		31,112		11,380		29,950
		299,594		264,876		237,353		207,842
Total derivatives	$	361,275		338,855	$	242,495		212,059

(a) Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.

Information about Fair Values of Derivative Instruments in Consolidated Statement of Income

Amount of gain (loss) recognized
	Three months ended September 30, 2015					Three months ended September 30, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(2,719	)		2,382	$	(16,792	)		16,380
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	4,120				$	132
Foreign exchange and other option and futures contracts (b)		2,441					(781	)
Total	$	6,561				$	(649	)

	Amount of gain (loss) recognized
	Nine months ended September 30, 2015					Nine months ended September 30, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(12,469	)		11,495	$	(26,627	)		25,658
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	6,552				$	1,214
Foreign exchange and other option and futures contracts (b)		1,563					(6,597	)
Total	$	8,115				$	(5,383	)

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Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt securities available for sale:
Due in one year or less	$ 8,282
Due after one year through five years	197,796
Due after five years through ten years	3,296
Due after ten years	159,824
Total available for sale (amortized cost)	369,198
Mortgage-backed securities available for sale	10,504,838
Total	10,874,036
Debt securities held to maturity:
Due in one year or less	30,523
Due after one year through five years	74,511
Due after five years through ten years	20,217
Due after ten years	6,806
Total available for held to maturity (amortized cost)	132,057
Mortgage-backed securities held to maturity	2,866,429
Amortized cost for held to maturity	2,998,486	$ 3,507,868
Debt securities available for sale:
Due in one year or less	8,330
Due after one year through five years	199,712
Due after five years through ten years	3,495
Due after ten years	164,497
Total available for sale (fair value)	376,034
Mortgage-backed securities available for sale	10,714,130
Total	11,090,164
Debt securities held to maturity:
Due in one year or less	30,706
Due after one year through five years	75,150
Due after five years through ten years	20,443
Due after ten years	6,806
Total available for held to maturity (fair value)	133,105
Mortgage-backed securities held to maturity	2,892,582
Total	$ 3,025,687	$ 3,538,282

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Borrowings - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Feb. 28, 2015	Dec. 31, 2014	Feb. 27, 2014
Schedule Of Borrowings [Line Items]
Interest rate of debt instrument				8.50%
Junior subordinated debentures	$ 513
Agreements to repurchase securities	1,400		$ 1,400
Collateral posted	$ 1,500		$ 1,500
Senior Notes Due 2020 [Member]
Schedule Of Borrowings [Line Items]
Interest rate of debt instrument		2.10%
Fixed rate senior notes issued		$ 750
Senior Notes Due 2025 [Member]
Schedule Of Borrowings [Line Items]
Interest rate of debt instrument		2.90%
Fixed rate senior notes issued		$ 750
Senior Notes [Member]
Schedule Of Borrowings [Line Items]
Fixed rate senior notes issued		$ 1,500
Junior Subordinated Debt [Member]
Schedule Of Borrowings [Line Items]
Debt Maturity, Start Year	Jan. 01, 2027
Debt Maturity, End Year	Dec. 31, 2033
Junior subordinated debentures redeemed	$ 323
Trust Preferred Securities Subject to Mandatory Redemption [Member]
Schedule Of Borrowings [Line Items]
Junior subordinated debentures				$ 350

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Fair Value Measurements - Quantitative Information Related to Significant Unobservable Inputs (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Privately Issued [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	$ 82	$ 103	$ 88	$ 112	$ 119	$ 1,850
Collateralized Debt Obligations [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	49,876	50,316	50,483	54,808	56,200	63,083
Other Assets and Other Liabilities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	17,647	17,347	$ 11,206	$ 16,492	$ 22,023	$ 3,941
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	$ 49,876	$ 50,316
Loss severity	100.00%	100.00%
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	33.00%	36.00%
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	12.00%	12.00%
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	57.00%	57.00%
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	$ 17,647	$ 17,347
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	38.00%	17.00%
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	0.00%	0.00%
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	66.00%	96.00%
Two Independent Pricing Quotes [Member] | Privately Issued [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	$ 82	$ 103

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Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 1,249,704	$ 1,289,965
Interest-bearing deposits at banks	4,713,266	6,470,867
Federal funds sold		83,392
Trading account	340,710	308,175
Investment securities (includes pledged securities that can be sold or repledged of $1,614,909 at September 30, 2015; $1,631,267 at December 31, 2014)
Available for sale (cost: $10,923,234 at September 30, 2015; $8,919,324 at December 31, 2014)	11,159,509	9,156,932
Held to maturity (fair value: $3,025,687 at September 30, 2015; $3,538,282 at December 31, 2014)	2,998,486	3,507,868
Other (fair value: $336,544 at September 30, 2015; $328,742 at December 31, 2014)	336,544	328,742
Total investment securities	14,494,539	12,993,542
Loans and leases	68,766,144	66,899,369
Unearned discount	(225,896)	(230,413)
Loans and leases, net of unearned discount	68,540,248	66,668,956
Allowance for credit losses	(933,798)	(919,562)
Loans and leases, net	67,606,450	65,749,394
Premises and equipment	581,976	612,984
Goodwill	3,513,325	3,524,625
Core deposit and other intangible assets	18,179	35,027
Accrued interest and other assets	5,278,913	5,617,564
Total assets	97,797,062	96,685,535
Liabilities
Noninterest-bearing deposits	28,189,330	26,947,880
NOW accounts	2,459,527	2,307,815
Savings deposits	39,298,134	41,085,803
Time deposits	2,791,367	3,063,973
Deposits at Cayman Islands office	206,185	176,582
Total deposits	72,944,543	73,582,053
Federal funds purchased and agreements to repurchase securities	173,783	192,676
Accrued interest and other liabilities	1,582,513	1,567,951
Long-term borrowings	10,174,289	9,006,959
Total liabilities	84,875,128	84,349,639
Shareholders' equity
Preferred stock, $1.00 par, 1,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: 731,500 shares at September 30, 2015 and December 31, 2014; Liquidation preference of $10,000 per share: 50,000 shares at September 30, 2015 and December 31, 2014	1,231,500	1,231,500
Common stock, $.50 par, 250,000,000 shares authorized, 133,274,963 shares issued at September 30, 2015; 132,312,931 shares issued at December 31, 2014	66,637	66,157
Common stock issuable, 36,462 shares at September 30, 2015; 41,330 shares at December 31, 2014	2,341	2,608
Additional paid-in capital	3,511,182	3,409,506
Retained earnings	8,273,747	7,807,119
Accumulated other comprehensive income (loss), net	(163,473)	(180,994)
Total shareholders' equity	12,921,934	12,335,896
Total liabilities and shareholders' equity	$ 97,797,062	$ 96,685,535

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Loans and Leases and the Allowance for Credit Losses - Summary of Current, Past Due and Nonaccrual Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	$ 66,788,173	$ 64,785,780
30-89 Days past due	503,264	530,901
Purchased impaired	149,421	197,737
Nonaccrual	787,098	799,151
Loans and leases, net of unearned discount	68,540,248	66,668,956
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	19,965,307	19,228,265
30-89 Days past due	29,451	37,246
Purchased impaired	4,645	10,300
Nonaccrual	224,415	177,445
Loans and leases, net of unearned discount	20,233,177	19,461,292
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	23,184,906	22,208,491
30-89 Days past due	105,140	118,704
Purchased impaired	45,523	51,312
Nonaccrual	176,491	141,600
Loans and leases, net of unearned discount	23,551,595	22,556,939
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,479,659	1,273,607
30-89 Days past due	15,951	11,827
Purchased impaired	65,102	98,347
Nonaccrual	46,022	71,517
Loans and leases, net of unearned discount	1,614,222	1,465,140
Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	3,493,349	3,484,932
30-89 Days past due	28,433	17,678
Purchased impaired	17,484	17,181
Nonaccrual	12,312	25,699
Loans and leases, net of unearned discount	3,554,720	3,545,490
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	7,323,813	7,640,368
30-89 Days past due	206,044	226,932
Purchased impaired	14,392	18,223
Nonaccrual	153,354	180,275
Loans and leases, net of unearned discount	7,908,178	8,318,013
Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	226,871	249,810
30-89 Days past due	11,662	11,774
Nonaccrual	64,351	77,704
Loans and leases, net of unearned discount	302,884	339,288
Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	5,710,632	5,859,378
30-89 Days past due	38,506	42,945
Purchased impaired	2,275	2,374
Nonaccrual	78,126	89,291
Loans and leases, net of unearned discount	5,844,993	6,021,884
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,319,556	1,931,138
30-89 Days past due	36,867	30,500
Nonaccrual	13,892	17,578
Loans and leases, net of unearned discount	2,370,368	1,979,349
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	3,084,080	2,909,791
30-89 Days past due	31,210	33,295
Nonaccrual	18,135	18,042
Loans and leases, net of unearned discount	3,160,111	2,981,561
Non-Acquired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	231,465	245,020
Non-Acquired [Member] | Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	5,882	1,805
Non-Acquired [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	21,629	22,170
Non-Acquired [Member] | Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing		492
Non-Acquired [Member] | Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	1,373
Non-Acquired [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	194,280	216,489
Non-Acquired [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	8,301	4,064
Acquired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	80,827	110,367
Acquired [Member] | Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	3,477	6,231
Acquired [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	17,906	14,662
Acquired [Member] | Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	7,488	9,350
Acquired [Member] | Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	1,769
Acquired [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	16,295	35,726
Acquired [Member] | Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	15,454	27,896
Acquired [Member] | Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	53	133
Acquired [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	$ 18,385	$ 16,369

XML

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income	$ 808,702	$ 788,697
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	112,000	91,000
Depreciation and amortization of premises and equipment	73,916	74,516
Amortization of capitalized servicing rights	36,730	51,572
Amortization of core deposit and other intangible assets	16,848	26,654
Provision for deferred income taxes	20,141	33,777
Asset write-downs	5,775	5,114
Net gain on sales of assets	(61,969)	(3,771)
Net change in accrued interest receivable, payable	(5,484)	9,638
Net change in other accrued income and expense	11,200	(89,425)
Net change in loans originated for sale	232,974	(224,425)
Net change in trading account assets and liabilities	(2,993)	11,163
Net cash provided by operating activities	1,247,840	774,510
Cash flows from investing activities
Proceeds from sales of investment securities Available for sale	2,579	16
Proceeds from sales of investment securities Other	377	23,309
Proceeds from maturities of investment securities Available for sale	1,343,869	686,183
Proceeds from maturities of investment securities Held to maturity	519,359	337,677
Purchases of investment securities Available for sale	(3,320,931)	(5,310,246)
Purchases of investment securities Held to maturity	(22,592)	(15,202)
Purchases of investment securities Other	(8,179)	(53,264)
Net increase in loans and leases	(2,208,660)	(1,420,572)
Net (increase) decrease in interest-bearing deposits at banks	1,757,601	(6,024,926)
Capital expenditures, net	(42,744)	(50,400)
Net (increase) decrease in loan servicing advances	461,700	(340,750)
Other, net	(75,449)	38,707
Net cash used by investing activities	(1,593,070)	(12,129,468)
Cash flows from financing activities
Net increase (decrease) in deposits	(636,144)	7,225,487
Net decrease in short-term borrowings	(18,893)	(95,846)
Proceeds from long-term borrowings	1,500,000	4,345,478
Payments on long-term borrowings	(324,308)	(373,642)
Proceeds from issuance of preferred stock		346,500
Dividends paid - common	(281,149)	(278,118)
Dividends paid - preferred	(58,003)	(46,966)
Other, net	40,074	82,774
Net cash provided by financing activities	221,577	11,205,667
Net decrease in cash and cash equivalents	(123,653)	(149,291)
Cash and cash equivalents at beginning of period	1,373,357	1,672,934
Cash and cash equivalents at end of period	1,249,704	1,523,643
Supplemental disclosure of cash flow information
Interest received during the period	2,234,476	2,147,236
Interest paid during the period	234,989	185,377
Income taxes paid during the period	373,016	329,621
Supplemental schedule of noncash investing and financing activities
Securitization of residential mortgage loans allocated to Available-for-sale investment securities	51,481	110,971
Securitization of residential mortgage loans allocated to capitalized servicing rights	528	1,429
Real estate acquired in settlement of loans	$ 35,018	$ 35,422

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Earnings Per Common Share - Computations of Basic Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income available to common shareholders:
Net income	$ 280,401	$ 275,344	$ 808,702	$ 788,697
Less: Preferred stock dividends	(20,318)	(20,443)	(60,953)	(55,560)
Net income available to common equity	260,083	254,901	747,749	733,137
Less: Income attributable to unvested stock-based compensation awards	(2,746)	(2,996)	(8,122)	(8,830)
Net income available to common shareholders	$ 257,337	$ 251,905	$ 739,627	$ 724,307
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	134,049	132,832	133,805	132,372
Less: Unvested stock-based compensation awards	(1,419)	(1,567)	(1,458)	(1,590)
Weighted-average shares outstanding	132,630	131,265	132,347	130,782
Basic earnings per common share	$ 1.94	$ 1.92	$ 5.59	$ 5.54

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Segment information (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Summary of Prior Period Financial Information Restated

Prior period financial information has been restated to reflect the changes noted to provide segment information on a comparable basis, as noted in the following tables.

	Three months ended September 30, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	30,905			(5,867	)		25,038
Commercial Banking		101,740			(1,035	)		100,705
Commercial Real Estate		78,581			95			78,676
Discretionary Portfolio		8,279			4,216			12,495
Residential Mortgage Banking		25,021			(2,272	)		22,749
Retail Banking		32,901			39,156			72,057
All Other		(2,083	)		(34,293	)		(36,376	)
Total	$	275,344			—			275,344
	Nine months ended September 30, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	87,263			(13,500	)		73,763
Commercial Banking		306,863			(3,226	)		303,637
Commercial Real Estate		230,668			(414	)		230,254
Discretionary Portfolio		34,538			4,360			38,898
Residential Mortgage Banking		72,144			(7,464	)		64,680
Retail Banking		94,646			119,418			214,064
All Other		(37,425	)		(99,174	)		(136,599	)
Total	$	788,697			—			788,697

Information about Company's Segments

Information about the Company’s segments is presented in the following table:

	Three months ended September 30
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	112,650		1,167			23,995		$	113,425		1,082			25,038
Commercial Banking		270,554		1,097			108,422			247,282		1,281			100,705
Commercial Real Estate		181,478		469			85,312			170,772		442			78,676
Discretionary Portfolio		13,773		(5,365	)		5,113			24,835		(5,478	)		12,495
Residential Mortgage Banking		99,518		12,918			21,150			104,092		12,875			22,749
Retail Banking		308,520		3,292			64,721			316,052		3,735			72,057
All Other		146,033		(13,578	)		(28,312	)		143,712		(13,937	)		(36,376	)
Total	$	1,132,526		—			280,401		$	1,120,170		—			275,344
	Nine months ended September 30
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	332,341		3,334			74,160			337,929		3,359			73,763
Commercial Banking		774,392		3,281			312,926			748,978		3,834			303,637
Commercial Real Estate		535,909		978			250,501			500,814		1,315			230,254
Discretionary Portfolio		49,724		(16,184	)		21,823			79,404		(15,799	)		38,898
Residential Mortgage Banking		310,843		36,741			75,462			299,237		34,395			64,680
Retail Banking		914,484		9,688			202,415			934,386		11,137			214,064
All Other		494,779		(37,838	)		(128,585	)		421,488		(38,241	)		(136,599	)
Total	$	3,412,472		—			808,702			3,322,236		—			788,697

Summary of Segment Information

	Average total assets (b)
	Nine months ended September 30				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,321		5,287		5,281
Commercial Banking		24,041		22,805		22,892
Commercial Real Estate		18,632		17,187		17,370
Discretionary Portfolio		23,153		20,306		20,798
Residential Mortgage Banking		3,007		3,016		3,076
Retail Banking		10,912		10,348		10,449
All Other		12,279		11,003		12,277
Total	$	97,345		89,952		92,143

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $6,248,000 and $5,841,000 for the three-month periods ended September 30, 2015 and 2014, respectively, and $18,106,000 and $17,635,000 for the nine-month periods ended September 30, 2015 and 2014, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

(b) Average assets of the Commercial Real Estate and Residential Mortgage Banking segments for the nine months ended September 30, 2014 and the year ended December 31, 2014 differ by $246 million and $257 million, respectively, from the previously reported balances reflecting the change in the Company’s internal profitability reporting for a builder and developer lending unit which moved assets held by that unit from the Residential Mortgage Banking Segment to the Commercial Real Estate Segment.

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Derivative Financial Instruments - Information about Interest Rate Swap Agreements (Detail) - Fixed Rate Long-Term Borrowings [Member] - Fair Value Hedges [Member] - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Derivative [Line Items]
Notional Amount	$ 1,400,000,000	$ 1,400,000,000
Average Maturity (in years)	1 year 10 months 24 days	2 years 8 months 12 days
Weighted-Average Rate, Fixed	4.42%	4.42%
Weighted-Average Rate, Variable	1.29%	1.19%

XML

Segment information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment information

14. Segment information

Reportable segments have been determined based upon the Company’s internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 2014. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. Effective January 1, 2015, the Company made certain changes to its methodology for measuring segment profit and loss. Those changes in the measurement of segment profitability were largely the result of updated funds transfer pricing and various cost allocation reviews. The most significant changes to the funds transfer pricing resulted from ascribing a longer duration to non-maturity deposits, which significantly benefitted the Retail Banking segment. The cost allocation review having the largest impact related to a branch cost study. That study consisted of transaction reviews and time studies which resulted in a higher cost allocation from the Retail Banking segment to the Business Banking segment. In addition, effective July 1, 2015, the Company changed its internal profitability reporting to move a builder and developer lending unit from the Residential Mortgage Banking segment to the Commercial Real Estate segment. Accordingly, financial information presented herein for the periods prior to July 1, 2015 has been reclassified to conform to the current presentation. Total revenues and net income decreased in the Residential Banking segment and increased in the Commercial Real Estate segment for the three months ended September 30, 2014 by $5 million and $2 million, respectively, and for the nine months ended September 30, 2014 by $13 million and $5 million, respectively. The impact of the change to total revenues and net income for the second quarter of 2015 was $6 million and $3 million, respectively, and for the first half of 2015 was $12 million and $5 million, respectively. Prior period financial information has been restated to reflect the changes noted to provide segment information on a comparable basis, as noted in the following tables.

	Three months ended September 30, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	30,905			(5,867	)		25,038
Commercial Banking		101,740			(1,035	)		100,705
Commercial Real Estate		78,581			95			78,676
Discretionary Portfolio		8,279			4,216			12,495
Residential Mortgage Banking		25,021			(2,272	)		22,749
Retail Banking		32,901			39,156			72,057
All Other		(2,083	)		(34,293	)		(36,376	)
Total	$	275,344			—			275,344
	Nine months ended September 30, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	87,263			(13,500	)		73,763
Commercial Banking		306,863			(3,226	)		303,637
Commercial Real Estate		230,668			(414	)		230,254
Discretionary Portfolio		34,538			4,360			38,898
Residential Mortgage Banking		72,144			(7,464	)		64,680
Retail Banking		94,646			119,418			214,064
All Other		(37,425	)		(99,174	)		(136,599	)
Total	$	788,697			—			788,697

As also described in note 22 to the Company’s 2014 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Company’s reportable segments, but are included in the “All Other” category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment.

Information about the Company’s segments is presented in the following table:

	Three months ended September 30
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	112,650		1,167			23,995		$	113,425		1,082			25,038
Commercial Banking		270,554		1,097			108,422			247,282		1,281			100,705
Commercial Real Estate		181,478		469			85,312			170,772		442			78,676
Discretionary Portfolio		13,773		(5,365	)		5,113			24,835		(5,478	)		12,495
Residential Mortgage Banking		99,518		12,918			21,150			104,092		12,875			22,749
Retail Banking		308,520		3,292			64,721			316,052		3,735			72,057
All Other		146,033		(13,578	)		(28,312	)		143,712		(13,937	)		(36,376	)
Total	$	1,132,526		—			280,401		$	1,120,170		—			275,344
	Nine months ended September 30
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	332,341		3,334			74,160			337,929		3,359			73,763
Commercial Banking		774,392		3,281			312,926			748,978		3,834			303,637
Commercial Real Estate		535,909		978			250,501			500,814		1,315			230,254
Discretionary Portfolio		49,724		(16,184	)		21,823			79,404		(15,799	)		38,898
Residential Mortgage Banking		310,843		36,741			75,462			299,237		34,395			64,680
Retail Banking		914,484		9,688			202,415			934,386		11,137			214,064
All Other		494,779		(37,838	)		(128,585	)		421,488		(38,241	)		(136,599	)
Total	$	3,412,472		—			808,702			3,322,236		—			788,697

	Average total assets (b)
	Nine months ended September 30				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,321		5,287		5,281
Commercial Banking		24,041		22,805		22,892
Commercial Real Estate		18,632		17,187		17,370
Discretionary Portfolio		23,153		20,306		20,798
Residential Mortgage Banking		3,007		3,016		3,076
Retail Banking		10,912		10,348		10,449
All Other		12,279		11,003		12,277
Total	$	97,345		89,952		92,143

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $6,248,000 and $5,841,000 for the three-month periods ended September 30, 2015 and 2014, respectively, and $18,106,000 and $17,635,000 for the nine-month periods ended September 30, 2015 and 2014, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

(b) Average assets of the Commercial Real Estate and Residential Mortgage Banking segments for the nine months ended September 30, 2014 and the year ended December 31, 2014 differ by $246 million and $257 million, respectively, from the previously reported balances reflecting the change in the Company’s internal profitability reporting for a builder and developer lending unit which moved assets held by that unit from the Residential Mortgage Banking Segment to the Commercial Real Estate Segment.

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Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Significant Accounting Policies [Line Items]
Amount restated as a result of adoption of new guidance	$ 434,710	$ 425,811	$ 1,263,653	$ 1,207,983
Adjustments for New Accounting Pronouncement [Member]
Significant Accounting Policies [Line Items]
Amount restated as a result of adoption of new guidance		$ 14,000		$ 39,000

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Sale of trust accounts

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Sale of trust accounts

16. Sale of trust accounts

In April 2015, the Company sold the trade processing business within the retirement services division of its Institutional Client Services business. That sale resulted in an after-tax gain of $23 million ($45 million pre-tax) that reflected the allocation of approximately $11 million of previously recorded goodwill to the divested business. Revenues of the sold business had been included in “trust income” and were $9 million during the three months ended March 31, 2015; $8 million and $26 million during the three months and nine months ended September 30, 2014, respectively; and $34 million during the year ended December 31, 2014. After considering related expenses, net income attributable to the business that was sold was not material to the consolidated results of operations of the Company in any of those periods.

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Variable Interest Entities and Asset Securitizations - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Variable Interest Entity Disclosure [Abstract]
Residential mortgage loans securitized with Ginnie Mae	$ 15,000,000	$ 35,000,000	$ 51,000,000	$ 110,000,000
Carrying value of loans in the Securitization trusts	84,000,000		84,000,000		$ 98,000,000
Combined outstanding principal amount of mortgage-backed securities issued by qualified special purpose trust held by unrelated parties	13,000,000		13,000,000		15,000,000
Other assets for its "investment" in the common securities recognized by the company of various trusts	24,000,000		24,000,000		34,000,000
Total assets of real estate partnerships in which the company invested	1,200,000,000		1,200,000,000		1,200,000,000
Maximum exposure to loss of investments in real estate partnerships	301,000,000		301,000,000		243,000,000
Unfunded commitments included in company's maximum exposure to loss of investments in real estate partnerships	85,000,000		85,000,000		$ 56,000,000
Investments amortized to income tax expense	10,000,000	14,000,000	31,000,000	39,000,000
Tax credits and other tax benefits recognized	$ 15,000,000	$ 18,000,000	$ 44,000,000	$ 53,000,000

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Series E Preferred Stock [Member]	Preferred Stock [Member]	Preferred Stock [Member] Series E Preferred Stock [Member]	Common Stock [Member]	Common Stock [Member] Series A Warrants [Member]	Common Stock Issuable [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Series A Warrants [Member]	Additional Paid-in Capital [Member] Series E Preferred Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), Net [Member]
Beginning balance at Dec. 31, 2013	$ 11,305,532		$ 881,500		$ 65,258		$ 2,915	$ 3,232,014			$ 7,188,004	$ (64,159)
Total comprehensive income	865,323										788,697	76,626
Preferred stock cash dividends	(55,560)										(55,560)
Exercise of stock warrants into common stock						$ 78			$ (78)
Issuance of Series E preferred stock		$ 346,500		$ 350,000						$ (3,500)
Stock-based compensation plans:
Compensation expense, net	34,245				128			34,117
Exercises of stock options, net	103,230				535			102,695
Stock purchase plan	9,588				43			9,545
Directors' stock plan	1,271				5			1,266
Deferred compensation plans, net, including dividend equivalents	(74)				3		(325)	335			(87)
Other	1,320							1,320
Common stock cash dividends - $2.10 per share	(278,059)										(278,059)
Ending balance at Sep. 30, 2014	12,333,316		1,231,500		66,050		2,590	3,377,714			7,642,995	12,467
Beginning balance at Dec. 31, 2014	12,335,896		1,231,500		66,157		2,608	3,409,506			7,807,119	(180,994)
Total comprehensive income	826,223										808,702	17,521
Preferred stock cash dividends	(60,953)										(60,953)
Exercise of stock warrants into common stock						$ 1			$ (1)
Stock-based compensation plans:
Compensation expense, net	31,559				143			31,416
Exercises of stock options, net	57,418				285			57,133
Stock purchase plan	10,346				45			10,301
Directors' stock plan	1,350				4			1,346
Deferred compensation plans, net, including dividend equivalents	(51)				2		(267)	290			(76)
Other	1,191							1,191
Common stock cash dividends - $2.10 per share	(281,045)										(281,045)
Ending balance at Sep. 30, 2015	$ 12,921,934		$ 1,231,500		$ 66,637		$ 2,341	$ 3,511,182			$ 8,273,747	$ (163,473)

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Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Pledged securities that can be sold or repledged	$ 1,614,909	$ 1,631,267
Investment securities, available for sale, amortized cost	10,923,234	8,919,324
Investment securities, held to maturity, fair value	3,025,687	3,538,282
Other, fair value	$ 336,544	$ 328,742
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	133,274,963	132,312,931
Common stock issuable, shares	36,462	41,330
Series A and Series C [Member]
Preferred stock, shares issued	731,500	731,500
Preferred stock, shares outstanding	731,500	731,500
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Series D Preferred Stock [Member]
Preferred stock, shares issued	50,000	50,000
Preferred stock, shares outstanding	50,000	50,000
Preferred stock, liquidation preference per share	$ 10,000	$ 10,000

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Comprehensive income

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Comprehensive income

9. Comprehensive income

The following table displays the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:

	Investment Securities
	With OTTI (a)		All other			Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2015	$	7,438		201,828			(503,027	)		(4,082	)	$	(297,843	)		116,849		$	(180,994	)
Other comprehensive income before reclassifications:
Unrealized holding gains (losses), net		9,699		(11,139	)		—			—			(1,440	)		952			(488	)
Foreign currency translation adjustment		—		—			—			(735	)		(735	)		214			(521	)
Gains on cash flow hedges		—		—			—			1,453			1,453			(568	)		885
Total other comprehensive income before reclassifications		9,699		(11,139	)		—			718			(722	)		598			(124	)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		—		2,417			—			—			2,417	(b)		(944	)		1,473
Losses realized in net income		—		108			—			—			108	(c)		(40	)		68
Accretion of net gain on terminated cash flow hedges		—		—			—			(102	)		(102	)(d)		40			(62	)
Amortization of prior service credit		—		—			(5,523	)		—			(5,523	)(e)		2,359			(3,164	)
Amortization of actuarial losses		—		—			33,698			—			33,698	(e)		(14,368	)		19,330
Total reclassifications		—		2,525			28,175			(102	)		30,598			(12,953	)		17,645
Total gain (loss) during the period		9,699		(8,614	)		28,175			616			29,876			(12,355	)		17,521
Balance – September 30, 2015	$	17,137		193,214			(474,852	)		(3,466	)	$	(267,967	)		104,494		$	(163,473	)

	Investment Securities
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2014	$	37,255		18,450		(161,617	)		115		$	(105,797	)		41,638		$	(64,159	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		12,038		109,263		—			—			121,301			(47,615	)		73,686
Foreign currency translation adjustment		—		—		—			(2,314	)		(2,314	)		810			(1,504	)
Unrealized losses on cash flow hedges		—		—		—			(162	)		(162	)		64			(98	)
Total other comprehensive income before reclassifications		12,038		109,263		—			(2,476	)		118,825			(46,741	)		72,084
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		1		2,539		—			—			2,540	(b)		(997	)		1,543
Amortization of prior service credit		—		—		(5,933	)		—			(5,933	)(e)		2,328			(3,605	)
Amortization of actuarial losses		—		—		10,871			—			10,871	(e)		(4,267	)		6,604
Total reclassifications		1		2,539		4,938			—			7,478			(2,936	)		4,542
Total gain (loss) during the period		12,039		111,802		4,938			(2,476	)		126,303			(49,677	)		76,626
Balance – September 30, 2014	$	49,294		130,252		(156,679	)		(2,361	)	$	20,506			(8,039	)	$	12,467

(a) Other-than-temporary impairment

(b) Included in interest income

(c) Included in loss on bank investment securities

(d) Included in interest expense

(e) Included in salaries and employee benefits expense

Accumulated other comprehensive income (loss), net consisted of the following:

	Investment securities					Defined benefit
	With OTTI		All other			plans			Other			Total
	(in thousands)
Balance – December 31, 2014	$	4,518		122,683			(305,589	)		(2,606	)	$	(180,994	)
Net gain (loss) during period		5,926		(4,873	)		16,166			302			17,521
Balance – September 30, 2015	$	10,444		117,810			(289,423	)		(2,304	)	$	(163,473	)

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 23, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	MTB
Entity Registrant Name	M&T BANK CORP
Entity Central Index Key	0000036270
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		133,289,778

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Derivative financial instruments

9 Months Ended

Sep. 30, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative financial instruments

10. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting and collateral provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts was not significant as of September 30, 2015.

The net effect of interest rate swap agreements was to increase net interest income by $11 million for each of the three-month periods ended September 30, 2015 and 2014 and $33 million and $34 million for the nine-month periods ended September 30, 2015 and 2014, respectively.

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional amount		Average maturity		Weighted- average rate
					Fixed			Variable
	(in thousands)		(in years)
September 30, 2015
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		1.9		4.42	%		1.29	%
December 31, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.7		4.42	%		1.19	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

The use of cash flow hedges to manage the variability of cash flows associated with the then-forecasted issuance of long-term debt did not have a significant impact on the Company’s consolidated financial position or results of operations.

The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in fair value of certain commitments to originate real estate loans for sale.

Derivative financial instruments used for trading account purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures. Interest rate contracts entered into for trading account purposes had notional values of $17.6 billion at each of September 30, 2015 and December 31, 2014. The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes aggregated $1.6 billion and $1.3 billion at September 30, 2015 and December 31, 2014, respectively.

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset derivatives				Liability derivatives
	Fair value				Fair value
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	60,782		73,251	$	—		—
Commitments to sell real estate loans (a)		899		728		5,142		4,217
		61,681		73,979		5,142		4,217
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		17,832		17,396		185		49
Commitments to sell real estate loans (a)		26		754		4,162		4,330
Trading:
Interest rate contracts (b)		268,332		215,614		221,626		173,513
Foreign exchange and other option and futures contracts (b)		13,404		31,112		11,380		29,950
		299,594		264,876		237,353		207,842
Total derivatives	$	361,275		338,855	$	242,495		212,059

(a) Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.

	Amount of gain (loss) recognized
	Three months ended September 30, 2015					Three months ended September 30, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(2,719	)		2,382	$	(16,792	)		16,380
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	4,120				$	132
Foreign exchange and other option and futures contracts (b)		2,441					(781	)
Total	$	6,561				$	(649	)

	Amount of gain (loss) recognized
	Nine months ended September 30, 2015					Nine months ended September 30, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(12,469	)		11,495	$	(26,627	)		25,658
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	6,552				$	1,214
Foreign exchange and other option and futures contracts (b)		1,563					(6,597	)
Total	$	8,115				$	(5,383	)

(a) Reported as other revenues from operations.

(b) Reported as trading account and foreign exchange gains.

In addition, the Company also has commitments to sell and commitments to originate residential and commercial real estate loans that are considered derivatives. The Company designates certain of the commitments to sell real estate loans as fair value hedges of real estate loans held for sale. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. As a result of these activities, net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans were approximately $23 million and $28 million at September 30, 2015 and December 31, 2014, respectively. Changes in unrealized gains and losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied.

The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions.

The aggregate fair value of derivative financial instruments in a liability position, which are subject to enforceable master netting arrangements, was $96 million and $161 million at September 30, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net liability positions with counterparties aggregated $91 million and $103 million at September 30, 2015 and December 31, 2014, respectively. The Company was required to post collateral relating to those positions of $81 million and $90 million at September 30, 2015 and December 31, 2014, respectively. Certain of the Company’s derivative financial instruments contain provisions that require the Company to maintain specific credit ratings from credit rating agencies to avoid higher collateral posting requirements. If the Company’s debt rating were to fall below specified ratings, the counterparties to the derivative financial instruments could demand immediate incremental collateralization on those instruments in a net liability position. The aggregate fair value of all derivative financial instruments with such credit risk-related contingent features in a net liability position on September 30, 2015 was $17 million, for which the Company had posted collateral of $11 million in the normal course of business. If the credit-risk-related contingent features had been triggered on September 30, 2015, the maximum amount of additional collateral the Company would have been required to post to counterparties was $6 million.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $40 million and $104 million at September 30, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net asset positions with counterparties aggregated $35 million and $46 million at September 30, 2015 and December 31, 2014, respectively. Counterparties posted collateral relating to those positions of $35 million and $46 million at September 30, 2015 and December 31, 2014, respectively. Trading account interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and often contain collateral provisions.

In addition to the derivative contracts noted above, the Company clears certain derivative transactions through a clearinghouse, rather than directly with counterparties. Those transactions cleared through a clearinghouse require initial margin collateral and additional collateral for contracts in a net liability position. The net fair values of derivative financial instruments

cleared through clearinghouses was a net liability position of $96 million and $35 million at September 30, 2015 and December 31, 2014, respectively. Collateral posted with clearinghouses was $143 million and $61 million at September 30, 2015 and December 31, 2014, respectively.

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Segment Information - Summary of Segment Information (Parenthetical) (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Segment Reporting Information [Line Items]
Taxable-equivalent adjustment	$ 6,248,000	$ 5,841,000	$ 18,106,000	$ 17,635,000
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Average assets		$ 246,000,000		$ 246,000,000
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Average assets					$ 257,000,000

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Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income
Loans and leases, including fees	$ 672,092	$ 647,280	$ 1,981,904	$ 1,937,531
Investment securities
Fully taxable	93,062	91,036	272,163	250,145
Exempt from federal taxes	950	1,271	3,330	4,068
Deposits at banks	3,852	3,198	10,321	7,617
Other	70	238	749	904
Total interest income	770,026	743,023	2,268,467	2,200,265
Interest expense
NOW accounts	360	394	1,020	1,021
Savings deposits	10,937	11,532	31,517	34,314
Time deposits	3,643	3,805	11,073	11,600
Deposits at Cayman Islands office	151	161	448	550
Short-term borrowings	32	19	102	76
Long-term borrowings	62,076	58,053	188,764	158,098
Total interest expense	77,199	73,964	232,924	205,659
Net interest income	692,827	669,059	2,035,543	1,994,606
Provision for credit losses	44,000	29,000	112,000	91,000
Net interest income after provision for credit losses	648,827	640,059	1,923,543	1,903,606
Other income
Mortgage banking revenues	84,035	93,532	288,238	269,237
Service charges on deposit accounts	107,259	110,071	314,860	321,637
Trust income	113,744	128,671	356,076	379,816
Brokerage services income	16,902	17,416	49,224	51,403
Trading account and foreign exchange gains	8,362	6,988	20,639	21,477
Loss on bank investment securities			(108)
Equity in earnings of Bayview Lending Group LLC	(3,721)	(4,114)	(11,043)	(12,623)
Other revenues from operations	113,118	98,547	359,043	296,683
Total other income	439,699	451,111	1,376,929	1,327,630
Other expense
Salaries and employee benefits	363,567	348,776	1,115,117	1,059,815
Equipment and net occupancy	68,470	67,713	201,792	206,964
Printing, postage and supplies	8,691	9,184	27,586	29,320
Amortization of core deposit and other intangible assets	4,090	7,358	16,848	26,654
FDIC assessments	11,090	13,193	32,551	43,836
Other costs of operations	197,908	219,135	642,925	656,664
Total other expense	653,816	665,359	2,036,819	2,023,253
Income before taxes	434,710	425,811	1,263,653	1,207,983
Income taxes	154,309	150,467	454,951	419,286
Net income	280,401	275,344	808,702	788,697
Net income available to common shareholders
Basic	257,337	251,905	739,627	724,307
Diluted	$ 257,346	$ 251,917	$ 739,656	$ 724,344
Net income per common share
Basic	$ 1.94	$ 1.92	$ 5.59	$ 5.54
Diluted	1.93	1.91	5.56	5.50
Cash dividends per common share	$ 0.70	$ 0.70	$ 2.10	$ 2.10
Average common shares outstanding
Basic	132,630	131,265	132,347	130,782
Diluted	133,376	132,128	133,089	131,698

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Loans and leases and the allowance for credit losses

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans and leases and the allowance for credit losses

4. Loans and leases and the allowance for credit losses

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date and included in the consolidated balance sheet follow:

	September 30,		December 31,
	2015		2014
	(in thousands)
Outstanding principal balance	$	2,410,454		3,070,268
Carrying amount:
Commercial, financial, leasing, etc.		103,583		247,820
Commercial real estate		728,376		961,828
Residential real estate		385,885		453,360
Consumer		812,117		933,537
	$	2,029,961		2,596,545

Purchased impaired loans included in the table above totaled $149 million at September 30, 2015 and $198 million at December 31, 2014, representing less than 1% of the Company’s assets as of each date. A summary of changes in the accretable yield for acquired loans for the three months and nine months ended September 30, 2015 and 2014 follows:

	Three months ended September 30
	2015						2014
	Purchased			Other			Purchased			Other
	impaired			acquired			impaired			acquired
	(in thousands)
Balance at beginning of period	$	77,624			344,989		$	26,082			450,970
Interest income		(5,865	)		(37,396	)		(4,149	)		(39,019	)
Reclassifications from nonaccretable balance		47			769			129			9,673
Other (a)		—			4,697			—			1,870
Balance at end of period	$	71,806			313,059		$	22,062			423,494
	Nine months ended September 30
	2015						2014
	Purchased			Other			Purchased			Other
	impaired			acquired			impaired			acquired
	(in thousands)
Balance at beginning of period	$	76,518			397,379		$	37,230			538,633
Interest income		(16,843	)		(118,697	)		(15,583	)		(135,105	)
Reclassifications from nonaccretable balance		12,131			27,792			415			10,448
Other (a)		—			6,585			—			9,518
Balance at end of period	$	71,806			313,059		$	22,062			423,494

(a) Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

A summary of current, past due and nonaccrual loans as of September 30, 2015 and December 31, 2014 follows:

			30-89 Days past due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
	Current				Non- acquired		Acquired (a)
	(in thousands)
September 30, 2015
Commercial, financial, leasing, etc.	$	19,965,307		29,451		5,882		3,477		4,645		224,415	$	20,233,177
Real estate:
Commercial		23,184,906		105,140		21,629		17,906		45,523		176,491		23,551,595
Residential builder and developer		1,479,659		15,951		—		7,488		65,102		46,022		1,614,222
Other commercial construction		3,493,349		28,433		1,373		1,769		17,484		12,312		3,554,720
Residential		7,323,813		206,044		194,280		16,295		14,392		153,354		7,908,178
Residential Alt-A		226,871		11,662		—		—		—		64,351		302,884
Consumer:
Home equity lines and loans		5,710,632		38,506		—		15,454		2,275		78,126		5,844,993
Automobile		2,319,556		36,867		—		53		—		13,892		2,370,368
Other		3,084,080		31,210		8,301		18,385		—		18,135		3,160,111
Total	$	66,788,173		503,264		231,465		80,827		149,421		787,098	$	68,540,248
	Current		30-89 Days past due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
					Non- acquired		Acquired (a)
	(in thousands)
December 31, 2014
Commercial, financial, leasing, etc.	$	19,228,265		37,246		1,805		6,231		10,300		177,445	$	19,461,292
Real estate:
Commercial		22,208,491		118,704		22,170		14,662		51,312		141,600		22,556,939
Residential builder and developer		1,273,607		11,827		492		9,350		98,347		71,517		1,465,140
Other commercial construction		3,484,932		17,678		—		—		17,181		25,699		3,545,490
Residential		7,640,368		226,932		216,489		35,726		18,223		180,275		8,318,013
Residential Alt-A		249,810		11,774		—		—		—		77,704		339,288
Consumer:
Home equity lines and loans		5,859,378		42,945		—		27,896		2,374		89,291		6,021,884
Automobile		1,931,138		30,500		—		133		—		17,578		1,979,349
Other		2,909,791		33,295		4,064		16,369		—		18,042		2,981,561
Total	$	64,785,780		530,901		245,020		110,367		197,737		799,151	$	66,668,956

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and were recorded at fair value.

One-to-four family residential mortgage loans held for sale were $422 million and $435 million at September 30, 2015 and December 31, 2014, respectively. Commercial mortgage loans held for sale were $71 million at September 30, 2015 and $308 million at December 31, 2014.

Changes in the allowance for credit losses for the three months ended September 30, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	286,750			311,294			60,294			194,238			77,411		$	929,987
Provision for credit losses		21,507			1,879			(3,155	)		24,448			(679	)		44,000
Net charge-offs
Charge-offs		(26,912	)		(2,203	)		(3,268	)		(20,758	)		—			(53,141	)
Recoveries		5,322			2,119			1,125			4,386			—			12,952
Net charge-offs		(21,590	)		(84	)		(2,143	)		(16,372	)		—			(40,189	)
Ending balance	$	286,667			313,089			54,996			202,314			76,732		$	933,798

Changes in the allowance for credit losses for the three months ended September 30, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666
Provision for credit losses		2,373			8,046			(3,187	)		21,815			(47	)		29,000
Net charge-offs
Charge-offs		(15,921	)		(1,666	)		(4,193	)		(21,312	)		—			(43,092	)
Recoveries		7,849			1,267			2,498			3,445			—			15,059
Net charge-offs		(8,072	)		(399	)		(1,695	)		(17,867	)		—			(28,033	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839		$	918,633

Changes in the allowance for credit losses for the nine months ended September 30, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	288,038			307,927			61,910			186,033			75,654	$	919,562
Provision for credit losses		32,686			13,769			(571	)		65,038			1,078		112,000
Net charge-offs
Charge-offs		(46,990	)		(12,352	)		(9,695	)		(64,542	)		—		(133,579	)
Recoveries		12,933			3,745			3,352			15,785			—		35,815
Net charge-offs		(34,057	)		(8,607	)		(6,343	)		(48,757	)		—		(97,764	)
Ending balance	$	286,667			313,089			54,996			202,314			76,732	$	933,798

Changes in the allowance for credit losses for the nine months ended September 30, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		40,527			(4,067	)		(916	)		54,632			824		91,000
Net charge-offs
Charge-offs		(44,872	)		(7,966	)		(17,124	)		(62,407	)		—		(132,369	)
Recoveries		17,514			5,956			6,906			12,950			—		43,326
Net charge-offs		(27,358	)		(2,010	)		(10,218	)		(49,457	)		—		(89,043	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839	$	918,633

Despite the above allocation, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type.

In establishing the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and detailed or intensified credit review processes and also estimates losses inherent in other loans and leases on a collective basis. For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolio by loan type. The amounts of loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial loans and commercial real estate loans that are in nonaccrual status and by applying loss factors to groups of loan balances based on loan type and management’s classification of such loans under the Company’s loan grading system. Measurement of the specific loss components is typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. In determining the allowance for credit losses, the Company utilizes a loan grading system which is applied to commercial and commercial real estate credits on an individual loan basis. Loan officers are responsible for assigning grades to these loans based on standards outlined in the Company’s Credit Policy. Internal loan grades are also monitored by the Company’s loan review department to ensure consistency and strict adherence to the prescribed standards. Loan grades are assigned loss component factors that reflect the Company’s loss estimate for each group of loans and leases. Factors considered in assigning loan grades and loss component factors include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information; levels of and trends in portfolio charge-offs and recoveries; levels of and trends in portfolio delinquencies and impaired loans; changes in the risk profile of specific portfolios; trends in volume and terms of loans; effects of changes in credit concentrations; and observed trends and practices in the banking industry. As updated appraisals are obtained on individual loans or other events in the market place indicate that collateral values have significantly changed, individual loan grades are adjusted as appropriate. Changes in other factors cited may also lead to loan grade changes at any time. Except for consumer loans and residential real estate loans that are considered smaller balance homogenous loans and acquired loans that are evaluated on an aggregated basis, the Company considers a loan to be impaired for purposes of applying GAAP when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days. Regardless of loan type, the Company considers a loan to be impaired if it qualifies as a troubled debt restructuring. Modified loans, including smaller balance homogenous loans, that are considered to be troubled debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows.

Information with respect to loans and leases that were considered impaired follows.

	September 30, 2015						December 31, 2014
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	144,051		166,877		35,195		132,340		165,146		31,779
Real estate:
Commercial		105,561		122,369		18,932		83,955		96,209		14,121
Residential builder and developer		6,544		10,276		788		17,632		22,044		805
Other commercial construction		2,445		3,991		391		5,480		6,484		900
Residential		83,349		101,367		4,775		88,970		107,343		4,296
Residential Alt-A		93,168		107,075		8,500		101,137		114,565		11,000
Consumer:
Home equity lines and loans		23,257		24,239		3,541		19,771		20,806		6,213
Automobile		23,985		23,985		5,118		30,317		30,317		8,070
Other		18,870		18,870		5,486		18,973		18,973		5,459
		501,230		579,049		82,726		498,575		581,887		82,643
With no related allowance recorded:
Commercial, financial, leasing, etc.		111,023		133,100		—		73,978		81,493		—
Real estate:
Commercial		77,147		84,677		—		66,777		78,943		—
Residential builder and developer		42,800		68,906		—		58,820		96,722		—
Other commercial construction		10,307		28,480		—		20,738		41,035		—
Residential		16,232		26,626		—		16,815		26,750		—
Residential Alt-A		20,891		35,836		—		26,752		46,964		—
		278,400		377,625		—		263,880		371,907		—
Total:
Commercial, financial, leasing, etc.		255,074		299,977		35,195		206,318		246,639		31,779
Real estate:
Commercial		182,708		207,046		18,932		150,732		175,152		14,121
Residential builder and developer		49,344		79,182		788		76,452		118,766		805
Other commercial construction		12,752		32,471		391		26,218		47,519		900
Residential		99,581		127,993		4,775		105,785		134,093		4,296
Residential Alt-A		114,059		142,911		8,500		127,889		161,529		11,000
Consumer:
Home equity lines and loans		23,257		24,239		3,541		19,771		20,806		6,213
Automobile		23,985		23,985		5,118		30,317		30,317		8,070
Other		18,870		18,870		5,486		18,973		18,973		5,459
Total	$	779,630		956,674		82,726		762,455		953,794		82,643

	Three months ended September 30, 2015						Three months ended September 30, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	242,157		1,017		1,017		228,749		611		611
Real estate:
Commercial		179,327		2,327		2,327		189,952		821		821
Residential builder and developer		53,009		81		81		90,493		18		18
Other commercial construction		17,236		1,943		1,943		58,500		251		251
Residential		99,939		1,835		1,316		104,516		1,328		776
Residential Alt-A		116,191		1,539		618		131,574		1,643		681
Consumer:
Home equity lines and loans		21,952		231		66		19,268		219		81
Automobile		24,429		391		39		33,666		528		67
Other		19,238		188		23		18,677		177		44
Total	$	773,478		9,552		7,430		875,395		5,596		3,350
	Nine months ended September 30, 2015						Nine months ended September 30, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	226,243		2,123		2,123		171,227		1,379		1,379
Real estate:
Commercial		161,834		4,433		4,433		194,337		2,616		2,616
Residential builder and developer		64,165		275		275		94,453		131		131
Other commercial construction		22,130		2,166		2,166		74,531		1,694		1,694
Residential		101,997		4,639		3,011		132,606		7,784		6,146
Residential Alt-A		120,710		4,799		1,962		135,374		5,002		1,900
Consumer:
Home equity lines and loans		20,619		656		179		17,902		540		182
Automobile		26,521		1,257		136		36,560		1,742		228
Other		19,053		547		86		18,229		517		145
Total	$	763,272		20,895		14,371		875,219		21,405		14,421

In determining the allowance for credit losses, residential real estate loans and consumer loans are generally evaluated collectively after considering such factors as payment performance and recent loss experience and trends, which are mainly driven by current collateral values in the market place as well as the amount of loan defaults. Loss rates on such loans are determined by reference to recent charge-off history and are evaluated (and adjusted if deemed appropriate) through consideration of other factors including near-term forecasted loss estimates developed by the Company’s Credit Department. In arriving at such forecasts, the Company considers the current estimated fair value of its collateral based on geographical adjustments for home price depreciation/appreciation and overall borrower repayment performance. With regard to collateral values, the realizability of such values by the Company contemplates repayment of any first lien position prior to recovering amounts on a second lien position. However, residential real estate loans and outstanding balances of home equity loans and lines of credit that are more than 150 days past due are generally evaluated for collectibility on a loan-by-loan basis giving consideration to estimated collateral values. The carrying value of residential real estate loans and home equity loans and lines of credit for which a partial charge-off has been recognized aggregated $59 million and $20 million, respectively, at September 30, 2015 and $63 million and $18 million,

respectively, at December 31, 2014. Residential real estate loans and home equity loans and lines of credit that were more than 150 days past due but did not require a partial charge-off because the net realizable value of the collateral exceeded the outstanding customer balance totaled $20 million and $28 million, respectively, at September 30, 2015 and $27 million and $28 million, respectively, at December 31, 2014.

In accordance with the previously described policies, the Company utilizes a loan grading system that is applied to all commercial loans and commercial real estate loans. Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan. Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. All larger balance criticized commercial loans and commercial real estate loans are individually reviewed by centralized loan review personnel each quarter to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. Smaller balance criticized loans are analyzed by business line risk management areas to ensure proper loan grade classification. Furthermore, criticized nonaccrual commercial loans and commercial real estate loans are considered impaired and, as a result, specific loss allowances on such loans are established within the allowance for credit losses to the extent appropriate in each individual instance. The following table summarizes the loan grades applied to the various classes of the Company’s commercial loans and commercial real estate loans.

			Real Estate
	Commercial,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(in thousands)
September 30, 2015
Pass	$	19,223,102		22,479,501		1,507,057		3,447,841
Criticized accrual		785,660		895,603		61,143		94,567
Criticized nonaccrual		224,415		176,491		46,022		12,312
Total	$	20,233,177		23,551,595		1,614,222		3,554,720
December 31, 2014
Pass	$	18,695,440		21,837,022		1,347,778		3,347,522
Criticized accrual		588,407		578,317		45,845		172,269
Criticized nonaccrual		177,445		141,600		71,517		25,699
Total	$	19,461,292		22,556,939		1,465,140		3,545,490

The Company also measures additional losses for purchased impaired loans when it is probable that the Company will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. The determination of the allocated portion of the allowance for credit losses is very subjective. Given that inherent subjectivity and potential imprecision involved in determining the allocated portion of the allowance for credit losses, the Company also provides an inherent unallocated portion of the allowance. The unallocated portion of the allowance is intended to recognize probable losses that are not otherwise identifiable and includes management’s subjective determination of amounts necessary to provide for the possible use of imprecise estimates in determining

the allocated portion of the allowance. Therefore, the level of the unallocated portion of the allowance is primarily reflective of the inherent imprecision in the various calculations used in determining the allocated portion of the allowance for credit losses. Other factors that could also lead to changes in the unallocated portion include the effects of expansion into new markets for which the Company does not have the same degree of familiarity and experience regarding portfolio performance in changing market conditions, the introduction of new loan and lease product types, and other risks associated with the Company’s loan portfolio that may not be specifically identifiable.

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
September 30, 2015
Individually evaluated for impairment	$	35,195		19,743		13,275		14,145	$	82,358
Collectively evaluated for impairment		250,271		292,214		39,804		186,706		768,995
Purchased impaired		1,201		1,132		1,917		1,463		5,713
Allocated	$	286,667		313,089		54,996		202,314		857,066
Unallocated										76,732
Total									$	933,798
December 31, 2014
Individually evaluated for impairment	$	31,779		15,490		14,703		19,742	$	81,714
Collectively evaluated for impairment		251,607		291,244		45,061		165,140		753,052
Purchased impaired		4,652		1,193		2,146		1,151		9,142
Allocated	$	288,038		307,927		61,910		186,033		843,908
Unallocated										75,654
Total									$	919,562

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
September 30, 2015
Individually evaluated for impairment	$	255,074		243,743		213,640		66,112	$	778,569
Collectively evaluated for impairment		19,973,458		28,348,685		7,983,030		11,307,085		67,612,258
Purchased impaired		4,645		128,109		14,392		2,275		149,421
Total	$	20,233,177		28,720,537		8,211,062		11,375,472	$	68,540,248
December 31, 2014
Individually evaluated for impairment	$	206,318		252,347		232,398		69,061	$	760,124
Collectively evaluated for impairment		19,244,674		27,148,382		8,406,680		10,911,359		65,711,095
Purchased impaired		10,300		166,840		18,223		2,374		197,737
Total	$	19,461,292		27,567,569		8,657,301		10,982,794	$	66,668,956

During the normal course of business, the Company modifies loans to maximize recovery efforts. If the borrower is experiencing financial difficulty and a concession is granted, the Company considers such modifications as troubled debt restructurings and classifies those loans as either nonaccrual loans or renegotiated loans. The types of concessions that the Company grants typically include principal deferrals and interest rate concessions, but may also include other types of concessions.

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended September 30, 2015 and 2014:

			Recorded investment				Financial effects of modification
Three months ended September 30, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		36	$	7,893	$	7,419	$	(474	)	$	—
Combination of concession types		1		31		31		—			(6	)
Real estate:
Commercial
Principal deferral		15		4,230		4,208		(22	)		—
Combination of concession types		1		1,156		1,169		13			(54	)
Other commercial construction
Principal deferral		3		296		390		94			—
Residential
Principal deferral		31		3,540		3,743		203			—
Other		1		267		267		—			—
Combination of concession types		10		1,296		1,380		84			(178	)
Residential Alt-A
Principal deferral		1		265		276		11			—
Combination of concession types		4		605		662		57			(91	)
Consumer:
Home equity lines and loans
Principal deferral		4		727		727		—			—
Combination of concession types		22		2,003		2,003		—			(199	)
Automobile
Principal deferral		35		316		316		—			—
Other		15		93		93		—			—
Combination of concession types		25		471		471		—			(17	)
Other
Principal deferral		24		352		352		—			—
Other		5		33		33		—			—
Combination of concession types		12		117		117		—			(12	)
Total		245	$	23,691	$	23,657	$	(34	)	$	(557	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Three months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	1,305	$	1,300	$	(5	)	$	—
Real estate:
Commercial
Principal deferral		8		2,081		2,068		(13	)		—
Other		1		650		—		(650	)		—
Combination of concession types		4		483		478		(5	)		(95	)
Residential builder and developer
Principal deferral		1		241		241		—			—
Other commercial construction
Principal deferral		1		145		142		(3	)		—
Residential
Principal deferral		3		98		97		(1	)		—
Combination of concession types		8		1,100		1,136		36			(135	)
Residential Alt-A
Combination of concession types		3		349		369		20			(64	)
Consumer:
Home equity lines and loans
Combination of concession types		5		519		519		—			(67	)
Automobile
Principal deferral		45		1,003		1,003		—			—
Interest rate reduction		3		30		30		—			(2	)
Other		7		96		96		—			—
Combination of concession types		19		348		348		—			(21	)
Other
Principal deferral		6		48		48		—			—
Interest rate reduction		1		2		2		—			—
Combination of concession types		24		511		511		—			(121	)
Total		154	$	9,009	$	8,388	$	(621	)	$	(505	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the nine months ended September 30, 2015 and 2014:

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		87	$	25,483	$	24,331	$	(1,152	)	$	—
Interest rate reduction		1		99		99		—			(19	)
Other		2		8,991		8,883		(108	)		—
Combination of concession types		6		25,075		24,884		(191	)		(245	)
Real estate:
Commercial
Principal deferral		37		47,005		45,569		(1,436	)		—
Combination of concession types		6		3,238		3,242		4			(159	)
Residential builder and developer
Principal deferral		2		10,650		10,598		(52	)		—
Other commercial construction
Principal deferral		3		296		390		94			—
Residential
Principal deferral		50		4,954		5,239		285			—
Other		1		267		267		—			—
Combination of concession types		22		2,551		2,795		244			(356	)
Residential Alt-A
Principal deferral		2		426		437		11			—
Combination of concession types		7		1,239		1,298		59			(121	)
Consumer:
Home equity lines and loans
Principal deferral		6		1,946		1,946		—			—
Combination of concession types		41		3,555		3,555		—			(424	)
Automobile
Principal deferral		133		1,234		1,234		—			—
Interest rate reduction		7		137		137		—			(10	)
Other		38		134		134		—			—
Combination of concession types		42		693		693		—			(28	)
Other
Principal deferral		73		1,418		1,418		—			—
Other		12		113		113		—			—
Combination of concession types		35		384		384		—			(44	)
Total		613	$	139,888	$	137,646	$	(2,242	)	$	(1,406	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		66	$	20,673	$	20,499	$	(174	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		32		17,452		17,384		(68	)		—
Other		1		650		—		(650	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		6		892		940		48			(208	)
Residential builder and developer
Principal deferral		2		1,639		1,639		—			—
Other commercial construction
Principal deferral		4		6,703		6,611		(92	)		—
Residential
Principal deferral		19		1,842		1,926		84			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		30		4,211		4,287		76			(483	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		19		3,101		3,134		33			(345	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		41		4,147		4,147		—			(443	)
Automobile
Principal deferral		168		2,599		2,599		—			—
Interest rate reduction		6		90		90		—			(5	)
Other		26		204		204		—			—
Combination of concession types		65		939		939		—			(83	)
Other
Principal deferral		21		141		141		—			—
Interest rate reduction		4		293		293		—			(63	)
Other		1		45		45		—			—
Combination of concession types		57		1,883		1,883		—			(585	)
Total		590	$	98,923	$	98,185	$	(738	)	$	(2,385	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

Troubled debt restructurings are considered to be impaired loans and for purposes of establishing the allowance for credit losses are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows. Impairment of troubled debt restructurings that have subsequently defaulted may also be measured based on the loan’s observable market price or the fair value of collateral if the loan is collateral-dependent. Charge-offs may also be recognized on troubled debt restructurings that have subsequently defaulted. Loans that were modified as troubled debt restructurings during the twelve months ended September 30, 2015 and 2014 and for which there was a subsequent payment default during the nine-month periods ended September 30, 2015 and 2014, respectively, were not material.

Effective January 1, 2015, the Company adopted amended accounting and disclosure guidance for reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The amended guidance clarifies that an in-substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The adoption resulted in an insignificant increase in other real estate owned. The amount of foreclosed residential real estate property held by the Company was $43 million and $44 million at September 30, 2015 and December 31, 2014, respectively. At September 30, 2015, there were $151 million in loans secured by residential real estate that were in the process of foreclosure.

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Investment securities

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investment securities

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
September 30, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	197,764		1,630		—	$	199,394
Obligations of states and political subdivisions		6,174		170		48		6,296
Mortgage-backed securities:
Government issued or guaranteed		10,504,756		228,333		19,041		10,714,048
Privately issued		82		2		2		82
Collateralized debt obligations		28,467		22,465		1,056		49,876
Other debt securities		136,793		1,650		17,975		120,468
Equity securities		49,198		20,360		213		69,345
		10,923,234		274,610		38,335		11,159,509
Investment securities held to maturity:
Obligations of states and political subdivisions		125,251		1,395		347		126,299
Mortgage-backed securities:
Government issued or guaranteed		2,679,546		69,486		4,787		2,744,245
Privately issued		186,883		1,628		40,174		148,337
Other debt securities		6,806		—		—		6,806
		2,998,486		72,509		45,308		3,025,687
Other securities		336,544		—		—		336,544
Total	$	14,258,264		347,119		83,643	$	14,521,740

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,408		544		5	$	161,947
Obligations of states and political subdivisions		8,027		224		53		8,198
Mortgage-backed securities:
Government issued or guaranteed		8,507,571		223,889		337		8,731,123
Privately issued		104		2		3		103
Collateralized debt obligations		30,073		21,276		1,033		50,316
Other debt securities		138,240		1,896		18,648		121,488
Equity securities		73,901		11,020		1,164		83,757
		8,919,324		258,851		21,243		9,156,932
Investment securities held to maturity:
Obligations of states and political subdivisions		148,961		2,551		189		151,323
Mortgage-backed securities:
Government issued or guaranteed		3,149,320		78,485		7,000		3,220,805
Privately issued		201,733		1,143		44,576		158,300
Other debt securities		7,854		—		—		7,854
		3,507,868		82,179		51,765		3,538,282
Other securities		328,742		—		—		328,742
Total	$	12,755,934		341,030		73,008	$	13,023,956

There were no significant gross realized gains or losses from the sale of investment securities for the three-month and nine-month periods ended September 30, 2015 and 2014, respectively.

At September 30, 2015, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

	Amortized cost		Estimated fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	8,282		8,330
Due after one year through five years		197,796		199,712
Due after five years through ten years		3,296		3,495
Due after ten years		159,824		164,497
		369,198		376,034
Mortgage-backed securities available for sale		10,504,838		10,714,130
	$	10,874,036		11,090,164
Debt securities held to maturity:
Due in one year or less	$	30,523		30,706
Due after one year through five years		74,511		75,150
Due after five years through ten years		20,217		20,443
Due after ten years		6,806		6,806
		132,057		133,105
Mortgage-backed securities held to maturity		2,866,429		2,892,582
	$	2,998,486		3,025,687

A summary of investment securities that as of September 30, 2015 and December 31, 2014 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

	Less than 12 months					12 months or more
	Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
September 30, 2015
Investment securities available for sale:
Obligations of states and political subdivisions	$	516		(2	)		1,405		(46	)
Mortgage-backed securities:
Government issued or guaranteed		1,942,135		(18,925	)		5,503		(116	)
Privately issued		—		—			48		(2	)
Collateralized debt obligations		5,733		(324	)		2,155		(732	)
Other debt securities		19,335		(458	)		86,813		(17,517	)
Equity securities		—		—			212		(213	)
		1,967,719		(19,709	)		96,136		(18,626	)
Investment securities held to maturity:
Obligations of states and political subdivisions		37,336		(292	)		4,096		(55	)
Mortgage-backed securities:
Government issued or guaranteed		16,619		(129	)		240,730		(4,658	)
Privately issued		—		—			118,840		(40,174	)
		53,955		(421	)		363,666		(44,887	)
Total	$	2,021,674		(20,130	)		459,802		(63,513	)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	6,505		(5	)		—		—
Obligations of states and political subdivisions		1,785		(52	)		121		(1	)
Mortgage-backed securities:
Government issued or guaranteed		39,001		(186	)		5,555		(151	)
Privately issued		—		—			65		(3	)
Collateralized debt obligations		2,108		(696	)		5,512		(337	)
Other debt securities		14,017		(556	)		92,661		(18,092	)
Equity securities		2,138		(1,164	)		—		—
		65,554		(2,659	)		103,914		(18,584	)
Investment securities held to maturity:
Obligations of states and political subdivisions		29,886		(184	)		268		(5	)
Mortgage-backed securities:
Government issued or guaranteed		137,413		(361	)		446,780		(6,639	)
Privately issued		—		—			127,512		(44,576	)
		167,299		(545	)		574,560		(51,220	)
Total	$	232,853		(3,204	)		678,474		(69,804	)

The Company owned 320 individual investment securities with aggregate gross unrealized losses of $84 million at September 30, 2015. Based on a review of each of the securities in the investment securities portfolio at September 30, 2015, the Company concluded that it expected to recover the amortized cost basis of its investment. As of September 30, 2015, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At September 30, 2015, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $337 million of cost method investment securities.

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

9 Months Ended

Sep. 30, 2015

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 $33 million at September 30, 2015.

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 mortgage loans from BLG and Bayview Financial having outstanding principal balances of $4.3 billion and $4.8 billion at September 30, 2015 and December 31, 2014, respectively. Revenues from those servicing rights were $6 million for each of the quarters ended September 30, 2015 and 2014, respectively, and $17 million and $20 million for the nine months ended September 30, 2015 and 2014, respectively. The Company sub-services residential real estate loans for Bayview Financial having outstanding principal balances totaling $39.5 billion and $41.3 billion at September 30, 2015 and December 31, 2014, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $26 million and $29 million for the three-month periods ended September 30, 2015 and 2014, respectively, and $91 million and $82 million for the nine-month periods ended September 30, 2015 and 2014, respectively. In addition, the Company held $187 million and $202 million of mortgage-backed securities in its held-to-maturity portfolio at September 30, 2015 and December 31, 2014, respectively, that were securitized by Bayview Financial.

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Variable interest entities and asset securitizations

9 Months Ended

Sep. 30, 2015

Text Block [Abstract]

Variable interest entities and asset securitizations

11. Variable interest entities and asset securitizations

During the three and nine months ended September 30, 2015, the Company securitized approximately $15 million and $51 million, respectively, of one-to-four family residential real estate loans that had been originated for sale in guaranteed mortgage securitizations with the Government National Mortgage Association (“Ginnie Mae”) and retained the resulting securities in its investment securities portfolio. In similar transactions for the three months and nine months ended September 30, 2014, the Company securitized $35 million and $110 million, respectively, of one-to-four family residential real estate loans. Gains associated with those transactions were not significant.

In accordance with GAAP, the Company determined that it was the primary beneficiary of a residential mortgage loan securitization trust considering its role as servicer and its retained subordinated interests in the trust. As a result, the Company has included the one-to-four family residential mortgage loans that were included in the trust in its consolidated financial statements. At September 30, 2015 and December 31, 2014, the carrying values of the loans in the securitization trust were $84 million and $98 million, respectively. The outstanding principal amount of mortgage-backed securities issued by the qualified special purpose trust that was held by parties unrelated to M&T at September 30, 2015 and December 31, 2014 was $13 million and $15 million, respectively. Because the transaction was non-recourse, the Company’s maximum exposure to loss as a result of its association with the trust at September 30, 2015 is limited to realizing the carrying value of the loans less the amount of the mortgage-backed securities held by the third parties.

As described in note 5, M&T has issued junior subordinated debentures payable to various trusts that have issued Capital Securities. M&T owns the common securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At September 30, 2015 and December 31, 2014, the Company included the junior subordinated debentures as “long-term borrowings” in its consolidated balance sheet and recognized $24 million and $34 million, respectively, in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 5.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.2 billion at September 30, 2015 and December 31, 2014, respectively. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $301 million, including $85 million of unfunded commitments, at September 30, 2015 and $243 million, including $56 million of unfunded commitments, at December 31, 2014. Contingent commitments to provide additional capital contributions to these partnerships were not material at September 30, 2015. The Company has not provided financial or other support to the partnerships that was not contractually required. Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities. The Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, in accordance with the accounting provisions for variable interest entities, the partnership entities are not included in the Company’s consolidated financial statements. As described in note 1, effective January 1, 2015 the Company retrospectively adopted for all periods presented amended accounting guidance on the accounting for investments in qualified affordable housing projects whereby the Company’s investment cost is amortized to income taxes in the consolidated statement of income as tax credits and other tax benefits resulting from deductible losses associated with the projects are received. The Company amortized $10 million and $31 million of its investments in qualified affordable housing projects to income tax expense during the three months and nine months ended September 30, 2015, respectively, and recognized $15 million and $44 million of tax credits and other tax benefits during those respective periods. Similarly, for the three months and nine months ended September 30, 2014, the Company amortized $14 million and $39 million, respectively, of its investments in qualified affordable housing projects to income tax expense, and recognized $18 million and $53 million of tax credits and other tax benefits during those respective periods.

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Pension plans and other postretirement benefits

9 Months Ended

Sep. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension plans and other postretirement benefits

7. Pension plans and other postretirement benefits

The Company provides defined benefit pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended September 30
	2015			2014			2015			2014
	(in thousands)
Service cost	$	5,916			5,130			188			151
Interest cost on projected benefit obligation		17,754			17,290			651			695
Expected return on plan assets		(23,527	)		(22,892	)		—			—
Amortization of prior service credit		(1,501	)		(1,638	)		(340	)		(340	)
Amortization of net actuarial loss		11,207			3,624			26			—
Net periodic benefit cost	$	9,849			1,514			525			506
	Pension benefits						Other postretirement benefits
	Nine months ended September 30
	2015			2014			2015			2014
	(in thousands)
Service cost	$	17,748			15,390			562			453
Interest cost on projected benefit obligation		53,261			51,871			1,953			2,084
Expected return on plan assets		(70,578	)		(68,676	)		—			—
Amortization of prior service credit		(4,504	)		(4,914	)		(1,019	)		(1,019	)
Amortization of net actuarial loss		33,619			10,871			79			—
Net periodic benefit cost	$	29,546			4,542			1,575			1,518

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $14,281,000 and $13,558,000 for the three months ended September 30, 2015 and 2014, respectively, and $44,377,000 and $41,963,000 for the nine months ended September 30, 2015 and 2014, respectively.

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Earnings Per Common Share - Computations of Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Net income available to common equity	$ 260,083	$ 254,901	$ 747,749	$ 733,137
Less: Income attributable to unvested stock-based compensation awards	(2,737)	(2,984)	(8,093)	(8,793)
Net income available to common shareholders	$ 257,346	$ 251,917	$ 739,656	$ 724,344
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards	134,049	132,832	133,805	132,372
Less: Unvested stock-based compensation awards	(1,419)	(1,567)	(1,458)	(1,590)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock	746	863	742	916
Adjusted weighted-average shares outstanding	133,376	132,128	133,089	131,698
Diluted earnings per common share	$ 1.93	$ 1.91	$ 5.56	$ 5.50

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Borrowings

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Borrowings

5. Borrowings

During February 2015, M&T Bank issued $1.5 billion of fixed rate senior notes pursuant to a Bank Note Program, of which $750 million have a 2.10% interest rate and mature in 2020 and $750 million have a 2.90% interest rate and mature in 2025.

M&T had $513 million of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at September 30, 2015 which are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities (“Capital Securities”) and common securities (“Common Securities”). The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures. The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust’s securities possessing general voting powers. The Capital Securities represent preferred undivided interests in the assets of the corresponding trust.

Holders of the Capital Securities receive preferential cumulative cash distributions unless M&T exercises its right to extend the payment of interest on the Junior Subordinated Debentures as allowed by the terms of each such debenture, in which case payment of distributions on the respective Capital Securities will be deferred for comparable periods. During an extended interest period, M&T may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. In general, the agreements governing the Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by M&T of the payment of distributions on, the redemption of, and any liquidation distribution with respect to the Capital Securities. The obligations under such guarantee and the Capital Securities are subordinate and junior in right of payment to all senior indebtedness of M&T.

The Capital Securities will remain outstanding until the Junior Subordinated Debentures are repaid at maturity, are redeemed prior to maturity or are distributed in liquidation to the Trusts. The Capital Securities are mandatorily redeemable in whole, but not in part, upon repayment at the stated maturity dates (ranging from 2027 to 2033) of the Junior Subordinated Debentures or the earlier redemption of the Junior Subordinated Debentures in whole upon the occurrence of one or more events set forth in the indentures relating to the Capital Securities, and in whole or in part at any time after an optional redemption prior to contractual maturity contemporaneously with the optional redemption of the related Junior Subordinated Debentures in whole or in part, subject to possible regulatory approval.

On April 15, 2015, M&T redeemed all of the issued and outstanding Capital Securities issued by M&T Capital Trust I, M&T Capital Trust II and M&T Capital Trust III, and the related Junior Subordinated Debentures held by those respective trusts. In the aggregate, $323 million of Junior Subordinated Debentures were redeemed. In February 2014, M&T redeemed all of the issued and outstanding 8.5% $350 million Capital Securities issued by M&T Capital Trust IV and the related Junior Subordinated Debentures held by M&T Capital Trust IV.

Also included in long-term borrowings are agreements to repurchase securities of $1.4 billion at each of September 30, 2015 and December 31, 2014. The agreements reflect various repurchase dates in 2016 and 2017 and are subject to legally enforceable master netting arrangements, however, the Company has not offset any amounts related to these agreements in its consolidated financial statements. The Company posted collateral consisting primarily of government guaranteed mortgage-backed securities of $1.5 billion at each of September 30, 2015 and December 31, 2014.

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Shareholders' equity

9 Months Ended

Sep. 30, 2015

Equity [Abstract]

Shareholders' equity

6. Shareholders’ equity

M&T is authorized to issue 1,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights.

Issued and outstanding preferred stock of M&T as of September 30, 2015 and December 31, 2014 is presented below:

	Shares issued and outstanding		Carrying value
	(dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share		230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		151,500	$	151,500
Series D (b)
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000	$	500,000
Series E (c)
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E, $1,000 liquidation preference per share		350,000	$	350,000

(a) Dividends, if declared, are paid at 6.375%. Warrants to purchase M&T common stock at $73.86 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 719,175 at September 30, 2015 and 721,490 at December 31, 2014.

(b) Dividends, if declared, are paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate (“LIBOR”) plus 361 basis points (hundredths of one percent). The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A warrants mentioned in (a) above, a warrant to purchase 95,383 shares of M&T common stock at $518.96 per share was outstanding at September 30, 2015 and December 31, 2014. The obligation under that warrant was assumed by M&T in an acquisition.

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Earnings per common share

9 Months Ended

Sep. 30, 2015

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
	2015			2014			2015			2014
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	280,401			275,344		$	808,702			788,697
Less: Preferred stock dividends (a)		(20,318	)		(20,443	)		(60,953	)		(55,560	)
Net income available to common equity		260,083			254,901			747,749			733,137
Less: Income attributable to unvested stock-based compensation awards		(2,746	)		(2,996	)		(8,122	)		(8,830	)
Net income available to common shareholders	$	257,337			251,905		$	739,627			724,307
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		134,049			132,832			133,805			132,372
Less: Unvested stock-based compensation awards		(1,419	)		(1,567	)		(1,458	)		(1,590	)
Weighted-average shares outstanding		132,630			131,265			132,347			130,782
Basic earnings per common share	$	1.94			1.92		$	5.59			5.54

(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
	2015			2014			2015			2014
	(in thousands, except per share)
Net income available to common equity	$	260,083			254,901		$	747,749			733,137
Less: Income attributable to unvested stock-based compensation awards		(2,737	)		(2,984	)		(8,093	)		(8,793	)
Net income available to common shareholders	$	257,346			251,917		$	739,656			724,344
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		134,049			132,832			133,805			132,372
Less: Unvested stock-based compensation awards		(1,419	)		(1,567	)		(1,458	)		(1,590	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		746			863			742			916
Adjusted weighted-average shares outstanding		133,376			132,128			133,089			131,698
Diluted earnings per common share	$	1.93			1.91		$	5.56			5.50

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 1.5 million and 1.7 million common shares during the three-month periods ended September 30, 2015 and 2014, respectively, and 1.9 million and 2.1 million common shares during the nine-month periods ended September 30, 2015 and 2014, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

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Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Derivative [Line Items]
Net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans	$ 23,000,000		$ 23,000,000		$ 28,000,000
Aggregate fair value of derivative financial instruments in a liability position	96,000,000		96,000,000		161,000,000
Net liability positions with counterparties	91,000,000		91,000,000		103,000,000
Post collateral requirements relating to positions	81,000,000		81,000,000		90,000,000
Aggregate fair value of derivative financial instruments in asset position	40,000,000		40,000,000		104,000,000
Net asset positions with counterparties	35,000,000		35,000,000		46,000,000
Counterparties posted collateral relating to positions	35,000,000		35,000,000		46,000,000
Clearinghouse Credit Facilities [Member]
Derivative [Line Items]
Post collateral requirements relating to positions	143,000,000		143,000,000		61,000,000
Aggregate fair value of derivative financial instruments in a net liability position	96,000,000		96,000,000		35,000,000
Credit Risk Derivative [Member]
Derivative [Line Items]
Aggregate fair value of derivative financial instruments in a net liability position	17,000,000		17,000,000
Fair value of collateral already posted for derivative financial instruments	11,000,000		11,000,000
Fair value of additional collateral to be posted for derivative financial instruments	6,000,000		6,000,000
Interest Rate Swap Agreements [Member]
Derivative [Line Items]
Increase in net interest income due to interest rate swap agreements	11,000,000	$ 11,000,000	33,000,000	$ 34,000,000
Interest Rate Contracts [Member]
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading account purposes	17,600,000,000		17,600,000,000		17,600,000,000
Foreign Currency and Other Option and Futures Contracts [Member]
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading account purposes	$ 1,600,000,000		$ 1,600,000,000		$ 1,300,000,000

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	$ 361,275	$ 338,855
Liability derivatives, Fair value	242,495	212,059
Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	299,594	264,876
Liability derivatives, Fair value	237,353	207,842
Fair Value Hedges [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	61,681	73,979
Liability derivatives, Fair value	5,142	4,217
Interest Rate Swap Agreements [Member] | Fair Value Hedges [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	60,782	73,251
Commitments to Sell Real Estate Loans [Member] | Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	26	754
Liability derivatives, Fair value	4,162	4,330
Commitments to Sell Real Estate Loans [Member] | Fair Value Hedges [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	899	728
Liability derivatives, Fair value	5,142	4,217
Mortgage-Related Commitments to Originate Real Estate Loans for Sale [Member] | Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	17,832	17,396
Liability derivatives, Fair value	185	49
Interest Rate Contracts [Member] | Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	268,332	215,614
Liability derivatives, Fair value	221,626	173,513
Foreign Exchange and Other Option and Futures Contracts [Member] | Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	13,404	31,112
Liability derivatives, Fair value	$ 11,380	$ 29,950

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Comprehensive Income - Accumulated Other Comprehensive Income (Loss), Net (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (180,994)	$ (64,159)
Net gain (loss) during period	17,521	76,626
Ending balance	(163,473)	$ 12,467
Investment Securities With OTTI [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	4,518
Net gain (loss) during period	5,926
Ending balance	10,444
Investment Securities All Other [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	122,683
Net gain (loss) during period	(4,873)
Ending balance	117,810
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(305,589)
Net gain (loss) during period	16,166
Ending balance	(289,423)
Accumulated Other Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(2,606)
Net gain (loss) during period	302
Ending balance	$ (2,304)

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Commitments and contingencies (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Company's Significant Commitments

The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.

	September 30,		December 31,
	2015		2014
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	5,535,704		6,194,516
Commercial real estate loans to be sold		89,374		212,257
Other commercial real estate and construction		5,356,256		4,834,699
Residential real estate loans to be sold		587,206		432,352
Other residential real estate		674,338		524,399
Commercial and other		12,144,962		11,080,856
Standby letters of credit		3,441,337		3,706,888
Commercial letters of credit		44,082		46,965
Financial guarantees and indemnification contracts		2,922,743		2,490,050
Commitments to sell real estate loans		977,822		1,237,294

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Loans and Leases and the Allowance for Credit Losses - Recorded Investment in Loans and Leases on Basis of Company's Impairment Methodology (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 68,540,248	$ 66,668,956
Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	778,569	760,124
Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	67,612,258	65,711,095
Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	149,421	197,737
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	20,233,177	19,461,292
Commercial, Financial, Leasing, etc. [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	255,074	206,318
Commercial, Financial, Leasing, etc. [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,973,458	19,244,674
Commercial, Financial, Leasing, etc. [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	4,645	10,300
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	28,720,537	27,567,569
Commercial Real Estate [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	243,743	252,347
Commercial Real Estate [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	28,348,685	27,148,382
Commercial Real Estate [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	128,109	166,840
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	8,211,062	8,657,301
Residential Real Estate [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	213,640	232,398
Residential Real Estate [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	7,983,030	8,406,680
Residential Real Estate [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	14,392	18,223
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	11,375,472	10,982,794
Consumer Loans [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	66,112	69,061
Consumer Loans [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	11,307,085	10,911,359
Consumer Loans [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 2,275	$ 2,374

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Commitments and contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

13. Commitments and contingencies

In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.

	September 30,		December 31,
	2015		2014
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	5,535,704		6,194,516
Commercial real estate loans to be sold		89,374		212,257
Other commercial real estate and construction		5,356,256		4,834,699
Residential real estate loans to be sold		587,206		432,352
Other residential real estate		674,338		524,399
Commercial and other		12,144,962		11,080,856
Standby letters of credit		3,441,337		3,706,888
Commercial letters of credit		44,082		46,965
Financial guarantees and indemnification contracts		2,922,743		2,490,050
Commitments to sell real estate loans		977,822		1,237,294

Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness.

Financial guarantees and indemnification contracts are oftentimes similar to standby letters of credit and include mandatory purchase agreements issued to ensure that customer obligations are fulfilled, recourse obligations associated with sold loans, and other guarantees of customer performance or compliance with designated rules and regulations. Included in financial guarantees and indemnification contracts are loan principal amounts sold with recourse in conjunction with the Company’s involvement in the Fannie Mae Delegated Underwriting and Servicing program. The Company’s maximum credit risk for recourse associated with loans sold under this program totaled approximately $2.5 billion and $2.4 billion at September 30, 2015 and December 31, 2014, respectively.

Since many loan commitments, standby letters of credit, and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows.

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are considered derivatives and along with commitments to originate real estate loans to be held for sale are generally recorded in the consolidated balance sheet at estimated fair market value.

The Company also has commitments under long-term operating leases.

The Company is contractually obligated to repurchase previously sold residential real estate loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. Subject to the outcome of the matter discussed in the following paragraph, at September 30, 2015, management believes that any further liability arising out of the Company’s obligation to loan purchasers is not material to the Company’s consolidated financial position.

The Company is the subject of an investigation by government agencies relating to the origination of Federal Housing Administration (“FHA”) insured residential home loans and residential home loans sold to The Federal Home Loan Mortgage Corporation (“Freddie Mac”) and The Federal National Mortgage Association (“Fannie Mae”). A number of other U.S. financial institutions have announced similar investigations. Regarding FHA loans, the U.S. Department of Housing and Urban Development (“HUD”) Office of Inspector General and the U.S. Department of Justice (collectively, the “Government”) are investigating whether the Company complied with underwriting guidelines concerning certain loans where HUD paid FHA insurance claims. The Company is fully cooperating with the investigation. The Government has advised the Company that based upon its review of a sample of loans for which an FHA insurance claim was paid by HUD, some of the loans do not meet underwriting guidelines. The Company, based on its own review of the sample, does not agree with the sampling methodology and loan analysis employed by the Government. Regarding loans originated by the Company and sold to Freddie Mac and Fannie Mae, the investigation concerns whether the mortgages sold to Freddie Mac and Fannie Mae comply with applicable underwriting guidelines. The Company is also cooperating with that portion of the investigation. The investigation could lead to claims by the Government under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, which allow treble and other special damages substantially in excess of actual losses. Remedies in these proceedings or settlements may include restitution, fines, penalties, or alterations in the Company’s business practices. The Company and the Government continue settlement discussions regarding the investigation.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings and other matters in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $40 million. Although the Company does not believe that the outcome of pending litigations will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

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Investment securities (Tables)

9 Months Ended

Sep. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Estimated Fair Value of Investment Securities

The amortized cost and estimated fair value of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
September 30, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	197,764		1,630		—	$	199,394
Obligations of states and political subdivisions		6,174		170		48		6,296
Mortgage-backed securities:
Government issued or guaranteed		10,504,756		228,333		19,041		10,714,048
Privately issued		82		2		2		82
Collateralized debt obligations		28,467		22,465		1,056		49,876
Other debt securities		136,793		1,650		17,975		120,468
Equity securities		49,198		20,360		213		69,345
		10,923,234		274,610		38,335		11,159,509
Investment securities held to maturity:
Obligations of states and political subdivisions		125,251		1,395		347		126,299
Mortgage-backed securities:
Government issued or guaranteed		2,679,546		69,486		4,787		2,744,245
Privately issued		186,883		1,628		40,174		148,337
Other debt securities		6,806		—		—		6,806
		2,998,486		72,509		45,308		3,025,687
Other securities		336,544		—		—		336,544
Total	$	14,258,264		347,119		83,643	$	14,521,740

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,408		544		5	$	161,947
Obligations of states and political subdivisions		8,027		224		53		8,198
Mortgage-backed securities:
Government issued or guaranteed		8,507,571		223,889		337		8,731,123
Privately issued		104		2		3		103
Collateralized debt obligations		30,073		21,276		1,033		50,316
Other debt securities		138,240		1,896		18,648		121,488
Equity securities		73,901		11,020		1,164		83,757
		8,919,324		258,851		21,243		9,156,932
Investment securities held to maturity:
Obligations of states and political subdivisions		148,961		2,551		189		151,323
Mortgage-backed securities:
Government issued or guaranteed		3,149,320		78,485		7,000		3,220,805
Privately issued		201,733		1,143		44,576		158,300
Other debt securities		7,854		—		—		7,854
		3,507,868		82,179		51,765		3,538,282
Other securities		328,742		—		—		328,742
Total	$	12,755,934		341,030		73,008	$	13,023,956

Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

At September 30, 2015, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

	Amortized cost		Estimated fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	8,282		8,330
Due after one year through five years		197,796		199,712
Due after five years through ten years		3,296		3,495
Due after ten years		159,824		164,497
		369,198		376,034
Mortgage-backed securities available for sale		10,504,838		10,714,130
	$	10,874,036		11,090,164
Debt securities held to maturity:
Due in one year or less	$	30,523		30,706
Due after one year through five years		74,511		75,150
Due after five years through ten years		20,217		20,443
Due after ten years		6,806		6,806
		132,057		133,105
Mortgage-backed securities held to maturity		2,866,429		2,892,582
	$	2,998,486		3,025,687

Investment Securities in Continuous Unrealized Loss Position

A summary of investment securities that as of September 30, 2015 and December 31, 2014 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

	Less than 12 months					12 months or more
	Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
September 30, 2015
Investment securities available for sale:
Obligations of states and political subdivisions	$	516		(2	)		1,405		(46	)
Mortgage-backed securities:
Government issued or guaranteed		1,942,135		(18,925	)		5,503		(116	)
Privately issued		—		—			48		(2	)
Collateralized debt obligations		5,733		(324	)		2,155		(732	)
Other debt securities		19,335		(458	)		86,813		(17,517	)
Equity securities		—		—			212		(213	)
		1,967,719		(19,709	)		96,136		(18,626	)
Investment securities held to maturity:
Obligations of states and political subdivisions		37,336		(292	)		4,096		(55	)
Mortgage-backed securities:
Government issued or guaranteed		16,619		(129	)		240,730		(4,658	)
Privately issued		—		—			118,840		(40,174	)
		53,955		(421	)		363,666		(44,887	)
Total	$	2,021,674		(20,130	)		459,802		(63,513	)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	6,505		(5	)		—		—
Obligations of states and political subdivisions		1,785		(52	)		121		(1	)
Mortgage-backed securities:
Government issued or guaranteed		39,001		(186	)		5,555		(151	)
Privately issued		—		—			65		(3	)
Collateralized debt obligations		2,108		(696	)		5,512		(337	)
Other debt securities		14,017		(556	)		92,661		(18,092	)
Equity securities		2,138		(1,164	)		—		—
		65,554		(2,659	)		103,914		(18,584	)
Investment securities held to maturity:
Obligations of states and political subdivisions		29,886		(184	)		268		(5	)
Mortgage-backed securities:
Government issued or guaranteed		137,413		(361	)		446,780		(6,639	)
Privately issued		—		—			127,512		(44,576	)
		167,299		(545	)		574,560		(51,220	)
Total	$	232,853		(3,204	)		678,474		(69,804	)

XML

Loans and Leases and the Allowance for Credit Losses - Summary of Loan Grades (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 68,540,248	$ 66,668,956
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	20,233,177	19,461,292
Commercial, Financial, Leasing, etc. [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,223,102	18,695,440
Commercial, Financial, Leasing, etc. [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	785,660	588,407
Commercial, Financial, Leasing, etc. [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	224,415	177,445
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	23,551,595	22,556,939
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	22,479,501	21,837,022
Commercial [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	895,603	578,317
Commercial [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	176,491	141,600
Residential Builder and Developer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,614,222	1,465,140
Residential Builder and Developer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,507,057	1,347,778
Residential Builder and Developer [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	61,143	45,845
Residential Builder and Developer [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	46,022	71,517
Other Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	3,554,720	3,545,490
Other Commercial Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	3,447,841	3,347,522
Other Commercial Construction [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	94,567	172,269
Other Commercial Construction [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 12,312	$ 25,699

XML

Investment Securities - Investment Securities in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	$ 1,967,719	$ 65,554
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(19,709)	(2,659)
Estimated fair value, 12 months or more	96,136	103,914
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(18,626)	(18,584)
Held to maturity, Estimated fair value, Less than 12 months	53,955	167,299
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(421)	(545)
Held to maturity, Estimated fair value, 12 months or more	363,666	574,560
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(44,887)	(51,220)
Total investment securities, fair value less than 12 months	2,021,674	232,853
Investment Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(20,130)	(3,204)
Total of investment securities, fair value, 12 Months or More	459,802	678,474
Investment Securities Continuous Unrealized Loss Position Twelve Months or Longer Aggregate Losses	(63,513)	(69,804)
Obligations of States and Political Subdivisions [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	516	1,785
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(2)	(52)
Estimated fair value, 12 months or more	1,405	121
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(46)	(1)
Held to maturity, Estimated fair value, Less than 12 months	37,336	29,886
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(292)	(184)
Held to maturity, Estimated fair value, 12 months or more	4,096	268
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(55)	(5)
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	1,942,135	39,001
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(18,925)	(186)
Estimated fair value, 12 months or more	5,503	5,555
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(116)	(151)
Held to maturity, Estimated fair value, Less than 12 months	16,619	137,413
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(129)	(361)
Held to maturity, Estimated fair value, 12 months or more	240,730	446,780
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(4,658)	(6,639)
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Held to maturity, Estimated fair value, 12 months or more	118,840	127,512
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(40,174)	(44,576)
U.S. Treasury and Federal Agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months		6,505
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses		(5)
Privately Issued Mortgage-Backed Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, 12 months or more	48	65
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(2)	(3)
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	5,733	2,108
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(324)	(696)
Estimated fair value, 12 months or more	2,155	5,512
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(732)	(337)
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	19,335	14,017
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(458)	(556)
Estimated fair value, 12 months or more	86,813	92,661
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(17,517)	(18,092)
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months		2,138
Available For Sale Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses		$ (1,164)
Estimated fair value, 12 months or more	212
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	$ (213)

XML

Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Partners' Capital [Abstract]
Net income	$ 280,401	$ 275,344	$ 808,702	$ 788,697
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	48,332	(27,637)	1,053	75,229
Unrealized gains (losses) on cash flow hedges	(24)	613	823	(98)
Foreign currency translation adjustment	(3)	(1,817)	(521)	(1,504)
Defined benefit plans liability adjustment	5,724	1,000	16,166	2,999
Total other comprehensive income (loss)	54,029	(27,841)	17,521	76,626
Total comprehensive income	$ 334,430	$ 247,503	$ 826,223	$ 865,323

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Acquisitions

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisitions

2. Acquisitions

On August 27, 2012, M&T announced that it had entered into a definitive agreement with Hudson City Bancorp, Inc. (“Hudson City”), headquartered in Paramus, New Jersey, under which Hudson City would be acquired by M&T. Pursuant to the terms of the agreement, Hudson City shareholders will receive consideration for each common share of Hudson City in an amount valued at .08403 of an M&T share in the form of either M&T common stock or cash, based on the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of 60% common stock of M&T and 40% cash). As of September 30, 2015, total consideration to be paid was valued at approximately $5.3 billion.

The merger has received the approval of the common shareholders of M&T and Hudson City. M&T announced on September 30, 2015 that it had received the approval of the Federal Reserve to acquire Hudson City and on October 9, 2015 M&T received approval of the proposed acquisition from the New York State Department of Financial Services. The transaction is expected to be completed on or about November 1, 2015 pending the satisfaction of customary closing conditions. At September 30, 2015, Hudson City had $35.1 billion of assets, including $19.2 billion of loans and $8.3 billion of investment securities, and $30.3 billion of liabilities, including $17.9 billion of deposits.

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Pension Plans and Other Postretirement Benefits - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Defined contribution pension and retirement savings plans total expense	$ 14,281,000	$ 13,558,000	$ 44,377,000	$ 41,963,000

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Sale of Trust Accounts - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended	12 Months Ended
	Apr. 30, 2015	Mar. 31, 2015	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]
Gain on sale of business net of tax	$ 23
Gain on sale of business before tax	45
Goodwill recorded	$ 11
Revenue on sale of business		$ 9	$ 8	$ 26	$ 34

XML

Fair Value Measurements - Additional Information (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Source	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Source	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of independent pricing sources used to value privately issued mortgage-backed securities valued with internal modeling | Source	2		2
Securities issued by financial institutions and other entities backed by trust preferred securities at cost	$ 28		$ 28		$ 30
Fair value of securities issued by financial institutions and other entities backed by trust preferred securities	50		50		50
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of nonrecurring fair value measured loans for charge-offs and impairment reserves	11	$ 23	53	$ 46
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured at fair value on nonrecurring basis	177	196	177	196	173
Assets taken in foreclosure of defaulted loans measured at fair value on a nonrecurring basis	15	21	15	21
Fair Value, Measurements, Nonrecurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured at fair value on nonrecurring basis	106	112	106	112	94
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured at fair value on nonrecurring basis	$ 71	$ 84	$ 71	$ 84	$ 79
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR			4.00%
Discount rates for fair value estimations			10.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR			10.00%
Discount rates for fair value estimations			90.00%
Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR			8.00%

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Loans and leases and the allowance for credit losses (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Outstanding Principal Balance and Carrying Amount of Loans that is Included in Consolidated Balance Sheet

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date and included in the consolidated balance sheet follow:

	September 30,		December 31,
	2015		2014
	(in thousands)
Outstanding principal balance	$	2,410,454		3,070,268
Carrying amount:
Commercial, financial, leasing, etc.		103,583		247,820
Commercial real estate		728,376		961,828
Residential real estate		385,885		453,360
Consumer		812,117		933,537
	$	2,029,961		2,596,545

Summary of Changes in Accretable Yield for Acquired Loans

A summary of changes in the accretable yield for acquired loans for the three months and nine months ended September 30, 2015 and 2014 follows:

	Three months ended September 30
	2015						2014
	Purchased			Other			Purchased			Other
	impaired			acquired			impaired			acquired
	(in thousands)
Balance at beginning of period	$	77,624			344,989		$	26,082			450,970
Interest income		(5,865	)		(37,396	)		(4,149	)		(39,019	)
Reclassifications from nonaccretable balance		47			769			129			9,673
Other (a)		—			4,697			—			1,870
Balance at end of period	$	71,806			313,059		$	22,062			423,494
	Nine months ended September 30
	2015						2014
	Purchased			Other			Purchased			Other
	impaired			acquired			impaired			acquired
	(in thousands)
Balance at beginning of period	$	76,518			397,379		$	37,230			538,633
Interest income		(16,843	)		(118,697	)		(15,583	)		(135,105	)
Reclassifications from nonaccretable balance		12,131			27,792			415			10,448
Other (a)		—			6,585			—			9,518
Balance at end of period	$	71,806			313,059		$	22,062			423,494

(a) Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of September 30, 2015 and December 31, 2014 follows:

			30-89 Days past due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
	Current				Non- acquired		Acquired (a)
	(in thousands)
September 30, 2015
Commercial, financial, leasing, etc.	$	19,965,307		29,451		5,882		3,477		4,645		224,415	$	20,233,177
Real estate:
Commercial		23,184,906		105,140		21,629		17,906		45,523		176,491		23,551,595
Residential builder and developer		1,479,659		15,951		—		7,488		65,102		46,022		1,614,222
Other commercial construction		3,493,349		28,433		1,373		1,769		17,484		12,312		3,554,720
Residential		7,323,813		206,044		194,280		16,295		14,392		153,354		7,908,178
Residential Alt-A		226,871		11,662		—		—		—		64,351		302,884
Consumer:
Home equity lines and loans		5,710,632		38,506		—		15,454		2,275		78,126		5,844,993
Automobile		2,319,556		36,867		—		53		—		13,892		2,370,368
Other		3,084,080		31,210		8,301		18,385		—		18,135		3,160,111
Total	$	66,788,173		503,264		231,465		80,827		149,421		787,098	$	68,540,248
	Current		30-89 Days past due		90 Days or more past due and accruing				Purchased impaired (b)		Nonaccrual		Total
					Non- acquired		Acquired (a)
	(in thousands)
December 31, 2014
Commercial, financial, leasing, etc.	$	19,228,265		37,246		1,805		6,231		10,300		177,445	$	19,461,292
Real estate:
Commercial		22,208,491		118,704		22,170		14,662		51,312		141,600		22,556,939
Residential builder and developer		1,273,607		11,827		492		9,350		98,347		71,517		1,465,140
Other commercial construction		3,484,932		17,678		—		—		17,181		25,699		3,545,490
Residential		7,640,368		226,932		216,489		35,726		18,223		180,275		8,318,013
Residential Alt-A		249,810		11,774		—		—		—		77,704		339,288
Consumer:
Home equity lines and loans		5,859,378		42,945		—		27,896		2,374		89,291		6,021,884
Automobile		1,931,138		30,500		—		133		—		17,578		1,979,349
Other		2,909,791		33,295		4,064		16,369		—		18,042		2,981,561
Total	$	64,785,780		530,901		245,020		110,367		197,737		799,151	$	66,668,956

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and were recorded at fair value.

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended September 30, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	286,750			311,294			60,294			194,238			77,411		$	929,987
Provision for credit losses		21,507			1,879			(3,155	)		24,448			(679	)		44,000
Net charge-offs
Charge-offs		(26,912	)		(2,203	)		(3,268	)		(20,758	)		—			(53,141	)
Recoveries		5,322			2,119			1,125			4,386			—			12,952
Net charge-offs		(21,590	)		(84	)		(2,143	)		(16,372	)		—			(40,189	)
Ending balance	$	286,667			313,089			54,996			202,314			76,732		$	933,798

Changes in the allowance for credit losses for the three months ended September 30, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666
Provision for credit losses		2,373			8,046			(3,187	)		21,815			(47	)		29,000
Net charge-offs
Charge-offs		(15,921	)		(1,666	)		(4,193	)		(21,312	)		—			(43,092	)
Recoveries		7,849			1,267			2,498			3,445			—			15,059
Net charge-offs		(8,072	)		(399	)		(1,695	)		(17,867	)		—			(28,033	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839		$	918,633

Changes in the allowance for credit losses for the nine months ended September 30, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	288,038			307,927			61,910			186,033			75,654	$	919,562
Provision for credit losses		32,686			13,769			(571	)		65,038			1,078		112,000
Net charge-offs
Charge-offs		(46,990	)		(12,352	)		(9,695	)		(64,542	)		—		(133,579	)
Recoveries		12,933			3,745			3,352			15,785			—		35,815
Net charge-offs		(34,057	)		(8,607	)		(6,343	)		(48,757	)		—		(97,764	)
Ending balance	$	286,667			313,089			54,996			202,314			76,732	$	933,798

Changes in the allowance for credit losses for the nine months ended September 30, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		40,527			(4,067	)		(916	)		54,632			824		91,000
Net charge-offs
Charge-offs		(44,872	)		(7,966	)		(17,124	)		(62,407	)		—		(132,369	)
Recoveries		17,514			5,956			6,906			12,950			—		43,326
Net charge-offs		(27,358	)		(2,010	)		(10,218	)		(49,457	)		—		(89,043	)
Ending balance	$	286,552			318,901			67,522			169,819			75,839	$	918,633

Impaired Loans and Leases

Information with respect to loans and leases that were considered impaired follows.

	September 30, 2015						December 31, 2014
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	144,051		166,877		35,195		132,340		165,146		31,779
Real estate:
Commercial		105,561		122,369		18,932		83,955		96,209		14,121
Residential builder and developer		6,544		10,276		788		17,632		22,044		805
Other commercial construction		2,445		3,991		391		5,480		6,484		900
Residential		83,349		101,367		4,775		88,970		107,343		4,296
Residential Alt-A		93,168		107,075		8,500		101,137		114,565		11,000
Consumer:
Home equity lines and loans		23,257		24,239		3,541		19,771		20,806		6,213
Automobile		23,985		23,985		5,118		30,317		30,317		8,070
Other		18,870		18,870		5,486		18,973		18,973		5,459
		501,230		579,049		82,726		498,575		581,887		82,643
With no related allowance recorded:
Commercial, financial, leasing, etc.		111,023		133,100		—		73,978		81,493		—
Real estate:
Commercial		77,147		84,677		—		66,777		78,943		—
Residential builder and developer		42,800		68,906		—		58,820		96,722		—
Other commercial construction		10,307		28,480		—		20,738		41,035		—
Residential		16,232		26,626		—		16,815		26,750		—
Residential Alt-A		20,891		35,836		—		26,752		46,964		—
		278,400		377,625		—		263,880		371,907		—
Total:
Commercial, financial, leasing, etc.		255,074		299,977		35,195		206,318		246,639		31,779
Real estate:
Commercial		182,708		207,046		18,932		150,732		175,152		14,121
Residential builder and developer		49,344		79,182		788		76,452		118,766		805
Other commercial construction		12,752		32,471		391		26,218		47,519		900
Residential		99,581		127,993		4,775		105,785		134,093		4,296
Residential Alt-A		114,059		142,911		8,500		127,889		161,529		11,000
Consumer:
Home equity lines and loans		23,257		24,239		3,541		19,771		20,806		6,213
Automobile		23,985		23,985		5,118		30,317		30,317		8,070
Other		18,870		18,870		5,486		18,973		18,973		5,459
Total	$	779,630		956,674		82,726		762,455		953,794		82,643

Interest Income Recognized on Impaired Loans

	Three months ended September 30, 2015						Three months ended September 30, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	242,157		1,017		1,017		228,749		611		611
Real estate:
Commercial		179,327		2,327		2,327		189,952		821		821
Residential builder and developer		53,009		81		81		90,493		18		18
Other commercial construction		17,236		1,943		1,943		58,500		251		251
Residential		99,939		1,835		1,316		104,516		1,328		776
Residential Alt-A		116,191		1,539		618		131,574		1,643		681
Consumer:
Home equity lines and loans		21,952		231		66		19,268		219		81
Automobile		24,429		391		39		33,666		528		67
Other		19,238		188		23		18,677		177		44
Total	$	773,478		9,552		7,430		875,395		5,596		3,350
	Nine months ended September 30, 2015						Nine months ended September 30, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	226,243		2,123		2,123		171,227		1,379		1,379
Real estate:
Commercial		161,834		4,433		4,433		194,337		2,616		2,616
Residential builder and developer		64,165		275		275		94,453		131		131
Other commercial construction		22,130		2,166		2,166		74,531		1,694		1,694
Residential		101,997		4,639		3,011		132,606		7,784		6,146
Residential Alt-A		120,710		4,799		1,962		135,374		5,002		1,900
Consumer:
Home equity lines and loans		20,619		656		179		17,902		540		182
Automobile		26,521		1,257		136		36,560		1,742		228
Other		19,053		547		86		18,229		517		145
Total	$	763,272		20,895		14,371		875,219		21,405		14,421

Summary of Loan Grades

The following table summarizes the loan grades applied to the various classes of the Company’s commercial loans and commercial real estate loans.

			Real Estate
	Commercial,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(in thousands)
September 30, 2015
Pass	$	19,223,102		22,479,501		1,507,057		3,447,841
Criticized accrual		785,660		895,603		61,143		94,567
Criticized nonaccrual		224,415		176,491		46,022		12,312
Total	$	20,233,177		23,551,595		1,614,222		3,554,720
December 31, 2014
Pass	$	18,695,440		21,837,022		1,347,778		3,347,522
Criticized accrual		588,407		578,317		45,845		172,269
Criticized nonaccrual		177,445		141,600		71,517		25,699
Total	$	19,461,292		22,556,939		1,465,140		3,545,490

Allocation of Allowance for Credit Losses on Basis of Company's Impairment Methodology

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
September 30, 2015
Individually evaluated for impairment	$	35,195		19,743		13,275		14,145	$	82,358
Collectively evaluated for impairment		250,271		292,214		39,804		186,706		768,995
Purchased impaired		1,201		1,132		1,917		1,463		5,713
Allocated	$	286,667		313,089		54,996		202,314		857,066
Unallocated										76,732
Total									$	933,798
December 31, 2014
Individually evaluated for impairment	$	31,779		15,490		14,703		19,742	$	81,714
Collectively evaluated for impairment		251,607		291,244		45,061		165,140		753,052
Purchased impaired		4,652		1,193		2,146		1,151		9,142
Allocated	$	288,038		307,927		61,910		186,033		843,908
Unallocated										75,654
Total									$	919,562

Recorded Investment in Loans and Leases on Basis of Company's Impairment Methodology

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
September 30, 2015
Individually evaluated for impairment	$	255,074		243,743		213,640		66,112	$	778,569
Collectively evaluated for impairment		19,973,458		28,348,685		7,983,030		11,307,085		67,612,258
Purchased impaired		4,645		128,109		14,392		2,275		149,421
Total	$	20,233,177		28,720,537		8,211,062		11,375,472	$	68,540,248
December 31, 2014
Individually evaluated for impairment	$	206,318		252,347		232,398		69,061	$	760,124
Collectively evaluated for impairment		19,244,674		27,148,382		8,406,680		10,911,359		65,711,095
Purchased impaired		10,300		166,840		18,223		2,374		197,737
Total	$	19,461,292		27,567,569		8,657,301		10,982,794	$	66,668,956

Loan Modification Activities that were Considered Troubled Debt Restructurings

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended September 30, 2015 and 2014:

			Recorded investment				Financial effects of modification
Three months ended September 30, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		36	$	7,893	$	7,419	$	(474	)	$	—
Combination of concession types		1		31		31		—			(6	)
Real estate:
Commercial
Principal deferral		15		4,230		4,208		(22	)		—
Combination of concession types		1		1,156		1,169		13			(54	)
Other commercial construction
Principal deferral		3		296		390		94			—
Residential
Principal deferral		31		3,540		3,743		203			—
Other		1		267		267		—			—
Combination of concession types		10		1,296		1,380		84			(178	)
Residential Alt-A
Principal deferral		1		265		276		11			—
Combination of concession types		4		605		662		57			(91	)
Consumer:
Home equity lines and loans
Principal deferral		4		727		727		—			—
Combination of concession types		22		2,003		2,003		—			(199	)
Automobile
Principal deferral		35		316		316		—			—
Other		15		93		93		—			—
Combination of concession types		25		471		471		—			(17	)
Other
Principal deferral		24		352		352		—			—
Other		5		33		33		—			—
Combination of concession types		12		117		117		—			(12	)
Total		245	$	23,691	$	23,657	$	(34	)	$	(557	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Three months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	1,305	$	1,300	$	(5	)	$	—
Real estate:
Commercial
Principal deferral		8		2,081		2,068		(13	)		—
Other		1		650		—		(650	)		—
Combination of concession types		4		483		478		(5	)		(95	)
Residential builder and developer
Principal deferral		1		241		241		—			—
Other commercial construction
Principal deferral		1		145		142		(3	)		—
Residential
Principal deferral		3		98		97		(1	)		—
Combination of concession types		8		1,100		1,136		36			(135	)
Residential Alt-A
Combination of concession types		3		349		369		20			(64	)
Consumer:
Home equity lines and loans
Combination of concession types		5		519		519		—			(67	)
Automobile
Principal deferral		45		1,003		1,003		—			—
Interest rate reduction		3		30		30		—			(2	)
Other		7		96		96		—			—
Combination of concession types		19		348		348		—			(21	)
Other
Principal deferral		6		48		48		—			—
Interest rate reduction		1		2		2		—			—
Combination of concession types		24		511		511		—			(121	)
Total		154	$	9,009	$	8,388	$	(621	)	$	(505	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the nine months ended September 30, 2015 and 2014:

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		87	$	25,483	$	24,331	$	(1,152	)	$	—
Interest rate reduction		1		99		99		—			(19	)
Other		2		8,991		8,883		(108	)		—
Combination of concession types		6		25,075		24,884		(191	)		(245	)
Real estate:
Commercial
Principal deferral		37		47,005		45,569		(1,436	)		—
Combination of concession types		6		3,238		3,242		4			(159	)
Residential builder and developer
Principal deferral		2		10,650		10,598		(52	)		—
Other commercial construction
Principal deferral		3		296		390		94			—
Residential
Principal deferral		50		4,954		5,239		285			—
Other		1		267		267		—			—
Combination of concession types		22		2,551		2,795		244			(356	)
Residential Alt-A
Principal deferral		2		426		437		11			—
Combination of concession types		7		1,239		1,298		59			(121	)
Consumer:
Home equity lines and loans
Principal deferral		6		1,946		1,946		—			—
Combination of concession types		41		3,555		3,555		—			(424	)
Automobile
Principal deferral		133		1,234		1,234		—			—
Interest rate reduction		7		137		137		—			(10	)
Other		38		134		134		—			—
Combination of concession types		42		693		693		—			(28	)
Other
Principal deferral		73		1,418		1,418		—			—
Other		12		113		113		—			—
Combination of concession types		35		384		384		—			(44	)
Total		613	$	139,888	$	137,646	$	(2,242	)	$	(1,406	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Nine months ended September 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		66	$	20,673	$	20,499	$	(174	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		32		17,452		17,384		(68	)		—
Other		1		650		—		(650	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		6		892		940		48			(208	)
Residential builder and developer
Principal deferral		2		1,639		1,639		—			—
Other commercial construction
Principal deferral		4		6,703		6,611		(92	)		—
Residential
Principal deferral		19		1,842		1,926		84			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		30		4,211		4,287		76			(483	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		19		3,101		3,134		33			(345	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		41		4,147		4,147		—			(443	)
Automobile
Principal deferral		168		2,599		2,599		—			—
Interest rate reduction		6		90		90		—			(5	)
Other		26		204		204		—			—
Combination of concession types		65		939		939		—			(83	)
Other
Principal deferral		21		141		141		—			—
Interest rate reduction		4		293		293		—			(63	)
Other		1		45		45		—			—
Combination of concession types		57		1,883		1,883		—			(585	)
Total		590	$	98,923	$	98,185	$	(738	)	$	(2,385	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

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Commitments and Contingencies - Company's Significant Commitments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Commitments to extend credit
Home equity lines of credit	$ 5,535,704	$ 6,194,516
Commercial real estate loans to be sold	89,374	212,257
Other commercial real estate and construction	5,356,256	4,834,699
Residential real estate loans to be sold	587,206	432,352
Other residential real estate	674,338	524,399
Commercial and other	12,144,962	11,080,856
Standby letters of credit	3,441,337	3,706,888
Commercial letters of credit	44,082	46,965
Financial guarantees and indemnification contracts	2,922,743	2,490,050
Commitments to sell real estate loans	$ 977,822	$ 1,237,294

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Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Other securities, Amortized cost	$ 336,544	$ 328,742
Other securities, Gross unrealized gains	0	0
Other securities, Gross unrealized losses	0	0
Other securities, Estimated fair value	336,544	328,742
Investment securities available for sale, amortized cost	10,923,234	8,919,324
Investment securities available for sale, gross unrealized gains	274,610	258,851
Investment securities available for sale, gross unrealized losses	38,335	21,243
Investment securities available for sale, estimated fair value	11,159,509	9,156,932
Amortized cost for held to maturity	2,998,486	3,507,868
Gross unrealized gains for held to maturity	72,509	82,179
Gross unrealized losses for held to maturity	45,308	51,765
Estimated fair value for held to maturity	3,025,687	3,538,282
Total Amortized cost	14,258,264	12,755,934
Total for Gross unrealized gains	347,119	341,030
Total for Gross unrealized losses	83,643	73,008
Total for Estimated fair value	14,521,740	13,023,956
Obligations of States and Political Subdivisions [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	6,174	8,027
Investment securities available for sale, gross unrealized gains	170	224
Investment securities available for sale, gross unrealized losses	48	53
Investment securities available for sale, estimated fair value	6,296	8,198
Amortized cost for held to maturity	125,251	148,961
Gross unrealized gains for held to maturity	1,395	2,551
Gross unrealized losses for held to maturity	347	189
Estimated fair value for held to maturity	126,299	151,323
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	10,504,756	8,507,571
Investment securities available for sale, gross unrealized gains	228,333	223,889
Investment securities available for sale, gross unrealized losses	19,041	337
Investment securities available for sale, estimated fair value	10,714,048	8,731,123
Amortized cost for held to maturity	2,679,546	3,149,320
Gross unrealized gains for held to maturity	69,486	78,485
Gross unrealized losses for held to maturity	4,787	7,000
Estimated fair value for held to maturity	2,744,245	3,220,805
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	82	104
Investment securities available for sale, gross unrealized gains	2	2
Investment securities available for sale, gross unrealized losses	2	3
Investment securities available for sale, estimated fair value	82	103
Amortized cost for held to maturity	186,883	201,733
Gross unrealized gains for held to maturity	1,628	1,143
Gross unrealized losses for held to maturity	40,174	44,576
Estimated fair value for held to maturity	148,337	158,300
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	136,793	138,240
Investment securities available for sale, gross unrealized gains	1,650	1,896
Investment securities available for sale, gross unrealized losses	17,975	18,648
Investment securities available for sale, estimated fair value	120,468	121,488
Amortized cost for held to maturity	6,806	7,854
Estimated fair value for held to maturity	6,806	7,854
U.S. Treasury and Federal Agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	197,764	161,408
Investment securities available for sale, gross unrealized gains	1,630	544
Investment securities available for sale, gross unrealized losses		5
Investment securities available for sale, estimated fair value	199,394	161,947
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	28,467	30,073
Investment securities available for sale, gross unrealized gains	22,465	21,276
Investment securities available for sale, gross unrealized losses	1,056	1,033
Investment securities available for sale, estimated fair value	49,876	50,316
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	49,198	73,901
Investment securities available for sale, gross unrealized gains	20,360	11,020
Investment securities available for sale, gross unrealized losses	213	1,164
Investment securities available for sale, estimated fair value	$ 69,345	$ 83,757

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Fair value measurements

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair value measurements

12. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections at September 30, 2015.

Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.

• Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.

• Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

• Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. The following is a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

Trading account assets and liabilities

Trading account assets and liabilities consist primarily of interest rate swap agreements and foreign exchange contracts with customers who require such services with offsetting positions with third parties to minimize the Company’s risk with respect to such transactions. The Company generally determines the fair value of its derivative trading account assets and liabilities using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. Mutual funds held in connection with deferred compensation arrangements have been classified as Level 1 valuations. Valuations of investments in municipal and other bonds can generally be obtained through reference to quoted prices in less active markets for the same or similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

Investment securities available for sale

The majority of the Company’s available-for-sale investment securities have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2. Certain investments in mutual funds and equity securities are actively traded and, therefore, have been classified as Level 1 valuations.

Included in collateralized debt obligations are securities backed by trust preferred securities issued by financial institutions and other entities. The Company could not obtain pricing indications for many of these securities from its two primary independent pricing sources. The Company, therefore, performed internal modeling to estimate the cash flows and fair value of its portfolio of securities backed by trust preferred securities at September 30, 2015 and December 31, 2014. The modeling techniques included estimating cash flows using bond-specific assumptions about future collateral defaults and related loss severities. The resulting cash flows were then discounted by reference to market yields observed in the single-name trust preferred securities market. In determining a market yield applicable to the estimated cash flows, a margin over LIBOR ranging from 4% to 10%, with a weighted-average of 8%, was used. Significant unobservable inputs used in the determination of estimated fair value of collateralized debt obligations are included in the accompanying table of significant unobservable inputs to Level 3 measurements. At September 30, 2015, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities were $28 million and $50 million, respectively, and at December 31, 2014 were $30 million and $50 million, respectively. Securities backed by trust preferred securities issued by financial institutions and other entities constituted all of the available-for-sale investment securities classified as Level 3 valuations.

The Company ensures an appropriate control framework is in place over the valuation processes and techniques used for significant Level 3 fair value measurements. Internal pricing models used for significant valuation measurements have generally been subjected to validation procedures including testing of mathematical constructs, review of valuation methodology and significant assumptions used.

Real estate loans held for sale

The Company utilizes commitments to sell real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. The carrying value of hedged real estate loans held for sale includes changes in estimated fair value during the hedge period. Typically, the Company attempts to hedge real estate loans originated for sale from the date of close through the sale date. The fair value of hedged real estate loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans with similar characteristics and, accordingly, such loans have been classified as a Level 2 valuation.

Commitments to originate real estate loans for sale and commitments to sell real estate loans

The Company enters into various commitments to originate real estate loans for sale and commitments to sell real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value on the consolidated balance sheet. The estimated fair values of such commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans to certain government-sponsored entities and other parties. The fair valuations of commitments to sell real estate loans generally result in a Level 2 classification. The estimated fair value of commitments to originate real estate loans for sale are adjusted to reflect the Company’s anticipated commitment expirations. The estimated commitment expirations are considered significant unobservable inputs contributing to the Level 3 classification of commitments to originate real estate loans for sale. Significant unobservable inputs used in the determination of estimated fair value of commitments to originate real estate loans for sale are included in the accompanying table of significant unobservable inputs to Level 3 measurements.

Interest rate swap agreements used for interest rate risk management

The Company utilizes interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of earning assets and interest-bearing liabilities. The Company generally determines the fair value of its interest rate swap agreements using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. The Company has considered counterparty credit risk in the valuation of its interest rate swap agreement assets and has considered its own credit risk in the valuation of its interest rate swap agreement liabilities.

The following tables present assets and liabilities at September 30, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at September 30, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	340,710		48,006		292,704		—
Investment securities available for sale:
U.S. Treasury and federal agencies		199,394		—		199,394		—
Obligations of states and political subdivisions		6,296		—		6,296		—
Mortgage-backed securities:
Government issued or guaranteed		10,714,048		—		10,714,048		—
Privately issued		82		—		—		82
Collateralized debt obligations		49,876		—		—		49,876
Other debt securities		120,468		—		120,468		—
Equity securities		69,345		40,370		28,975		—
		11,159,509		40,370		11,069,181		49,958
Real estate loans held for sale		493,453		—		493,453		—
Other assets (b)		79,539		—		61,707		17,832
Total assets	$	12,073,211		88,376		11,917,045		67,790
Trading account liabilities	$	233,006		—		233,006		—
Other liabilities (b)		9,489		—		9,304		185
Total liabilities	$	242,495		—		242,310		185
	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2015 and the year ended December 31, 2014.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2015	$	88		$	50,483		$	11,206
Total gains (losses) realized/unrealized:
Included in earnings		—			—			21,709	(a)
Included in other comprehensive income		—			(472	)(d)		—
Settlements		(6	)		(135	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,268	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,488	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2014	$	119		$	56,200		$	22,023
Total gains (losses) realized/unrealized:
Included in earnings		—			—			9,657	(a)
Included in other comprehensive income		—			2,201	(d)		—
Settlements		(7	)		(3,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,188	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	12,421	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			67,611	(a)
Included in other comprehensive income		—			5,153	(d)		—
Settlements		(21	)		(5,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(67,311	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,965	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			63,557	(a)
Included in other comprehensive income		272	(d)		11,333	(d)		—
Settlements		(2,010	)		(19,608	)		—
Transfers in and/or out of Level 3 (b)		—			—			(51,006	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	17,773	(a)

(a) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(b) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(c) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(d) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow.

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2, unless significant adjustments have been made to the valuation that are not readily observable by market participants. Non-real estate collateral supporting commercial loans generally consists of business assets such as receivables, inventory and equipment. Fair value estimations are typically determined by discounting recorded values of those assets to reflect estimated net realizable value considering specific borrower facts and circumstances and the experience of credit personnel in their dealings with similar borrower collateral liquidations. Such discounts were generally in the range of 10% to 90% at September 30, 2015. As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3. Loans subject to nonrecurring fair value measurement were $177 million at September 30, 2015 ($106 million and $71 million of which were classified as Level 2 and Level 3, respectively), $173 million at December 31, 2014 ($94 million and $79 million of which were classified as Level 2 and Level 3, respectively) and $196 million at September 30, 2014 ($112 million and $84 million of which were classified as Level 2 and Level 3, respectively). Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2015 were decreases of $11 million and $53 million for the three- and nine-month periods ended September 30, 2015, respectively. Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2014 were decreases of $23 million and $46 million for the three- and nine-month periods ended September 30, 2014, respectively.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans are primarily comprised of commercial and residential real property and are generally measured at the lower of cost or fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2. Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement were $15 million and $21 million at September 30, 2015 and September 30, 2014, respectively. Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month and nine-month periods ended September 30, 2015 and 2014.

Significant unobservable inputs to Level 3 measurements

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at September 30, 2015 and December 31, 2014:

	Fair value at September 30, 2015		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	82		Two independent pricing quotes		—		—
Collateralized debt obligations		49,876		Discounted cash flow		Probability of default		12%-57% (33%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,647		Discounted cash flow		Commitment expirations		0%-66% (38%)
	Fair value at December 31, 2014		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103		Two independent pricing quotes		—		—
Collateralized debt obligations		50,316		Discounted cash flow		Probability of default		12%-57% (36%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,347		Discounted cash flow		Commitment expirations		0%-96% (17%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Sensitivity of fair value measurements to changes in unobservable inputs

An increase (decrease) in the probability of default and loss severity for collateralized debt securities would generally result in a lower (higher) fair value measurement.

An increase (decrease) in the estimate of expirations for commitments to originate real-estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing.

Disclosures of fair value of financial instruments

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	September 30, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,249,704		$	1,249,704		$	1,193,831	$	55,873		$	—
Interest-bearing deposits at banks		4,713,266			4,713,266			—		4,713,266			—
Trading account assets		340,710			340,710			48,006		292,704			—
Investment securities		14,494,539			14,521,740			40,370		14,283,075			198,295
Loans and leases:
Commercial loans and leases		20,233,177			19,920,031			—		—			19,920,031
Commercial real estate loans		28,720,537			28,633,973			—		71,357			28,562,616
Residential real estate loans		8,211,062			8,302,630			—		4,918,613			3,384,017
Consumer loans		11,375,472			11,280,973			—		—			11,280,973
Allowance for credit losses		(933,798	)		—			—		—			—
Loans and leases, net		67,606,450			68,137,607			—		4,989,970			63,147,637
Accrued interest receivable		242,935			242,935			—		242,935			—
Financial liabilities:
Noninterest-bearing deposits	$	(28,189,330	)	$	(28,189,330	)	$	—	$	(28,189,330	)	$	—
Savings deposits and NOW accounts		(41,757,661	)		(41,757,661	)		—		(41,757,661	)		—
Time deposits		(2,791,367	)		(2,810,224	)		—		(2,810,224	)		—
Deposits at Cayman Islands office		(206,185	)		(206,185	)		—		(206,185	)		—
Short-term borrowings		(173,783	)		(173,783	)		—		(173,783	)		—
Long-term borrowings		(10,174,289	)		(10,219,180	)		—		(10,219,180	)		—
Accrued interest payable		(73,475	)		(73,475	)		—		(73,475	)		—
Trading account liabilities		(233,006	)		(233,006	)		—		(233,006	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,647		$	17,647		$	—	$	—		$	17,647
Commitments to sell real estate loans		(8,379	)		(8,379	)		—		(8,379	)		—
Other credit-related commitments		(118,656	)		(118,656	)		—		—			(118,656	)
Interest rate swap agreements used for interest rate risk management		60,782			60,782			—		60,782			—

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management		73,251			73,251			—		73,251			—

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. The following assumptions, methods and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

Cash and cash equivalents, interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable

Due to the nature of cash and cash equivalents and the near maturity of interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable, the Company estimated that the carrying amount of such instruments approximated estimated fair value.

Investment securities

Estimated fair values of investments in readily marketable securities were generally based on quoted market prices. Investment securities that were not readily marketable were assigned amounts based on estimates provided by outside parties or modeling techniques that relied upon discounted calculations of projected cash flows or, in the case of other investment securities, which include capital stock of the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York, at an amount equal to the carrying amount.

Loans and leases

In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end. A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans. Projected loan cash flows were adjusted for estimated credit losses. However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans and leases would seek.

Deposits

Pursuant to GAAP, the estimated fair value ascribed to noninterest-bearing deposits, savings deposits and NOW accounts must be established at carrying value because of the customers’ ability to withdraw funds immediately. Time deposit accounts are required to be revalued based upon prevailing market interest rates for similar maturity instruments. As a result, amounts assigned to time deposits were based on discounted cash flow calculations using prevailing market interest rates based on the Company’s pricing at the respective date for deposits with comparable remaining terms to maturity.

The Company believes that deposit accounts have a value greater than that prescribed by GAAP. The Company feels, however, that the value associated with these deposits is greatly influenced by characteristics of the buyer, such as the ability to reduce the costs of servicing the deposits and deposit attrition which often occurs following an acquisition.

Long-term borrowings

The amounts assigned to long-term borrowings were based on quoted market prices, when available, or were based on discounted cash flow calculations using prevailing market interest rates for borrowings of similar terms and credit risk.

Other commitments and contingencies

As described in note 13, in the normal course of business, various commitments and contingent liabilities are outstanding, such as loan commitments, credit guarantees and letters of credit. The Company’s pricing of such financial instruments is based largely on credit quality and relationship, probability of funding and other requirements. Loan commitments often have fixed expiration dates and contain termination and other clauses which provide for relief from funding in the event of significant deterioration in the credit quality of the customer. The rates and terms of the Company’s loan commitments, credit guarantees and letters of credit are competitive with other financial institutions operating in markets served by the Company. The Company believes that the carrying amounts, which are included in other liabilities, are reasonable estimates of the fair value of these financial instruments.

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities.

Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.