Earnings per common share

9 Months Ended

Sep. 30, 2015

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.