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Loans and leases
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Loans and leases

4.    Loans and leases

Total loans and leases outstanding were comprised of the following:

 

     December 31  
     2015     2014  
     (In thousands)  

Loans

     

Commercial, financial, etc.

    $ 19,223,419      $ 18,280,049   

Real estate:

     

Residential

      26,249,059        8,636,794   

Commercial

      24,125,778        22,614,174   

Construction

      5,183,313        5,061,269   

Consumer

      11,584,347        10,969,879   
  

 

 

    

 

 

  

Total loans

      86,365,916        65,562,165   

Leases

     

Commercial

      1,353,318        1,337,204   
  

 

 

    

 

 

  

Total loans and leases

      87,719,234        66,899,369   

Less: unearned discount

      (229,735 )      (230,413 ) 
  

 

 

    

 

 

  

Total loans and leases, net of unearned discount

    $ 87,489,499      $ 66,668,956   
  

 

 

    

 

 

  

One-to-four family residential mortgage loans held for sale were $353 million at December 31, 2015 and $435 million at December 31, 2014. Commercial real estate loans held for sale were $39 million at December 31, 2015 and $308 million at December 31, 2014.

During 2013, the Company securitized approximately $1.3 billion of one-to-four family residential real estate loans previously held in the Company’s loan portfolio into guaranteed mortgage-backed securities with the Government National Mortgage Association (“Ginnie Mae”) and recognized gains of $42,382,000. In addition, the Company securitized and sold in 2013 approximately $1.4 billion of automobile loans held in its loan portfolio, resulting in a gain of $20,683,000.

As of December 31, 2015, approximately $2.5 billion of commercial real estate loan balances serviced for others had been sold with recourse in conjunction with the Company’s participation in the Federal National Mortgage Association (“Fannie Mae”) Delegated Underwriting and Servicing (“DUS”) program. At December 31, 2015, the Company estimated that the recourse obligations described above were not material to the Company’s consolidated financial position. There have been no material losses incurred as a result of those credit recourse arrangements.

In addition to recourse obligations, as described in note 21, 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. Charges incurred for such obligation, which are recorded as a reduction of mortgage banking revenues, were $5 million, $4 million and $17 million in 2015, 2014 and 2013, respectively.

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

 

     December 31  
     2015      2014  
     (In thousands)  

Outstanding principal balance

    $ 3,122,935       $ 3,070,268   

Carrying amount:

      

Commercial, financial, leasing, etc.

      78,847         247,820   

Commercial real estate

      644,284         961,828   

Residential real estate

      1,016,129         453,360   

Consumer

      725,807         933,537   
  

 

 

     

 

 

  
   $ 2,465,067       $ 2,596,545   
  

 

 

     

 

 

  

Purchased impaired loans included in the table above totaled $768 million at December 31, 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 loans acquired at a discount for the years ended December 31, 2015, 2014 and 2013 follows:

 

For Year Ended December 31,

    2015     2014     2013  
     Purchased     Other     Purchased     Other     Purchased     Other  
     Impaired     Acquired     Impaired     Acquired     Impaired     Acquired  
     (In thousands)  

Balance at beginning of period

    $ 76,518      $ 397,379      $ 37,230      $ 538,633      $ 42,252      $ 638,272   

Additions

      117,251        —        —        —        —        —   

Interest income

      (28,551 )      (158,260 )      (21,263 )      (178,670 )      (36,727 )      (247,295 ) 

Reclassifications from nonaccretable balance, net

      19,400        49,930        60,551        24,907        31,705        149,595   

Other(a)

      —        7,385        —        12,509        —        (1,939 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at end of period

    $ 184,618      $ 296,434      $ 76,518      $ 397,379      $ 37,230      $ 538,633   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(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 December 31, 2015 and 2014 follows:

 

    Current     30-89 Days
Past Due		     Accruing
Loans Past
Due 90
Days or
More(a)		     Accruing
Loans
Acquired at
a Discount
Past Due
90 Days or
More(b)		     Purchased
Impaired(c)		     Nonaccrual     Total  
    (In thousands)  

December 31, 2015

              

Commercial, financial, leasing, etc.

   $ 20,122,648      $ 52,868      $ 2,310      $ 693      $ 1,902      $ 241,917      $ 20,422,338   

Real estate:

              

Commercial

     23,645,354        172,439        12,963        8,790        46,790        179,606        24,065,942   

Residential builder and developer

     1,507,856        7,969        5,760        6,925        28,734        28,429        1,585,673   

Other commercial construction

     3,428,939        65,932        7,936        2,001        24,525        16,363        3,545,696   

Residential

     20,507,551        560,312        284,451        16,079        488,599        153,281        22,010,273   

Residential-limited documentation

     3,885,073        137,289        —        —        175,518        61,950        4,259,830   

Consumer:

              

Home equity lines and loans

     5,805,222        45,604        —        15,222        2,261        84,467        5,952,776   

Automobile

     2,446,473        56,181        —        6        —        16,597        2,519,257   

Other

     3,051,435        36,702        4,021        18,757        —        16,799        3,127,714   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 84,400,551      $ 1,135,296      $ 317,441      $ 68,473      $ 768,329      $ 799,409      $ 87,489,499   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

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-limited documentation

     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) Excludes loans acquired at a discount.

 

(b) Loans acquired at a discount 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 were recorded at fair value.

If nonaccrual and renegotiated loans had been accruing interest at their originally contracted terms, interest income on such loans would have amounted to $56,784,000 in 2015, $58,314,000 in 2014 and $62,010,000 in 2013. The actual amounts included in interest income during 2015, 2014 and 2013 on such loans were $30,735,000, $28,492,000 and $31,987,000, respectively.

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 table below summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the year ended December 31, 2015:

 

            Recorded Investment      Financial Effects of
Modification		  
     Number      Pre-
modifica-
tion		      Post-
modifica-
tion		      Recorded
Investment
(a)		      Interest
(b)		  
     (Dollars in thousands)  

Commercial, financial, leasing, etc.

               

Principal deferral

      114       $ 55,621       $ 50,807       $ (4,814 )     $ —   

Interest rate reduction

      1         99         99         —         (19 ) 

Other

      3         12,965         12,827         (138 )       —   

Combination of concession types

      9         32,444         31,439         (1,005 )       (245 ) 

Real estate:

               

Commercial

               

Principal deferral

      49         49,486         48,388         (1,098 )       —   

Other

      3         4,169         4,087         (82 )       —   

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

      4         368         460         92         —   

Combination of concession types

      2         10,375         10,375         —         (49 ) 

Residential

               

Principal deferral

      58         6,194         6,528         334         —   

Other

      1         267         267         —         —   

Combination of concession types

      26         4,024         4,277         253         (483 ) 

Residential-limited documentation

               

Principal deferral

      2         426         437         11         —   

Combination of concession types

      9         1,536         1,635         99         (121 ) 

Consumer:

               

Home equity lines and loans

               

Principal deferral

      8         2,175         2,175         —         —   

Combination of concession types

      63         5,203         5,204         1         (677 ) 

Automobile

               

Principal deferral

      192         1,818         1,818         —         —   

Interest rate reduction

      7         137         137         —         (10 ) 

Other

      46         150         150         —         —   

Combination of concession types

      57         948         948         —         (43 ) 

Other

               

Principal deferral

      102         1,995         1,995         —         —   

Other

      13         116         116         —         —   

Combination of concession types

      40         396         396         —         (45 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      817       $ 204,800       $ 198,405       $ (6,395 )     $ (1,851 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

(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 table below summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the year ended December 31, 2014:

 

            Recorded Investment      Financial Effects of
Modification		  
     Number      Pre-
modifica-
tion		      Post-
modifica-
tion		      Recorded
Investment
(a)		      Interest
(b)		  
     (Dollars in thousands)  

Commercial, financial, leasing, etc.

               

Principal deferral

      95       $ 29,035       $ 23,628       $ (5,407 )     $ —   

Other

      3         29,912         31,604         1,692         —   

Combination of concession types

      7         19,167         19,030         (137 )       (20 ) 

Real estate:

               

Commercial

               

Principal deferral

      39         19,077         18,997         (80 )       —   

Interest rate reduction

      1         255         252         (3 )       (48 ) 

Other

      1         650         —         (650 )       —   

Combination of concession types

      7         1,152         1,198         46         (264 ) 

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

      28         2,710         2,905         195         —   

Interest rate reduction

      11         1,146         1,222         76         (152 ) 

Other

      1         188         188         —         —   

Combination of concession types

      30         4,211         4,287         76         (483 ) 

Residential-limited documentation

               

Principal deferral

      6         880         963         83         —   

Combination of concession types

      21         3,806         3,846         40         (386 ) 

Consumer:

               

Home equity lines and loans

               

Principal deferral

      3         280         280         —         —   

Interest rate reduction

      6         535         535         —         (120 ) 

Combination of concession types

      47         5,031         5,031         —         (560 ) 

Automobile

               

Principal deferral

      208         3,293         3,293         —         —   

Interest rate reduction

      9         152         152         —         (12 ) 

Other

      42         255         255         —         —   

Combination of concession types

      81         1,189         1,189         —         (100 ) 

Other

               

Principal deferral

      33         245         245         —         —   

Interest rate reduction

      4         293         293         —         (63 ) 

Other

      1         45         45         —         —   

Combination of concession types

      70         2,502         2,502         —         (761 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      760       $ 134,351       $ 130,190       $ (4,161 )     $ (2,969 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

(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 table below summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the year ended December 31, 2013:

 

            Recorded Investment      Financial Effects of
Modification		  
     Number      Pre-
modifica-
tion		      Post-
modifica-
tion		      Recorded
Investment
(a)		      Interest
(b)		  
     (Dollars in thousands)  

Commercial, financial, leasing, etc.

               

Principal deferral

      79       $ 16,389       $ 16,002       $ (387 )     $ —   

Interest rate reduction

      1         104         335         231         (54 ) 

Other

      4         50,433         50,924         491         —   

Combination of concession types

      11         6,229         5,578         (651 )       (458 ) 

Real estate:

               

Commercial

               

Principal deferral

      27         40,639         40,464         (175 )       —   

Other

      2         449         475         26         —   

Combination of concession types

      9         2,649         3,040         391         (250 ) 

Residential builder and developer

               

Principal deferral

      18         21,423         20,577         (846 )       —   

Other

      1         4,039         3,888         (151 )       —   

Combination of concession types

      3         15,580         15,514         (66 )       (535 ) 

Other commercial construction

               

Principal deferral

      3         590         521         (69 )       —   

Residential

               

Principal deferral

      32         3,556         3,821         265         —   

Other

      1         195         195         —         —   

Combination of concession types

      61         73,940         70,854         (3,086 )       (924 ) 

Residential-limited documentation

               

Principal deferral

      10         1,900         1,880         (20 )       —   

Combination of concession types

      19         2,826         3,148         322         (790 ) 

Consumer:

               

Home equity lines and loans

               

Principal deferral

      10         859         861         2         —   

Interest rate reduction

      1         99         99         —         (8 ) 

Other

      1         106         106         —         —   

Combination of concession types

      28         2,190         2,190         —         (270 ) 

Automobile

               

Principal deferral

      460         6,148         6,148         —         —   

Interest rate reduction

      15         235         235         —         (22 ) 

Other

      78         339         339         —         —   

Combination of concession types

      225         2,552         2,552         —         (191 ) 

Other

               

Principal deferral

      36         332         332         —         —   

Interest rate reduction

      1         12         12         —         (2 ) 

Other

      2         14         14         —         —   

Combination of concession types

      120         4,248         4,248         —         (1,187 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

      1,258       $ 258,075       $ 254,352       $ (3,723 )     $ (4,691 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

(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 December 31, 2015, 2014 and 2013 and for which there was a subsequent payment default during the respective period were not material.

Borrowings by directors and certain officers of M&T and its banking subsidiaries, and by associates of such persons, exclusive of loans aggregating less than $120,000, amounted to $52,152,000 and $49,799,000 at December 31, 2015 and 2014, respectively. During 2015, new borrowings by such persons amounted to $4,425,000 (including any borrowings of new directors or officers that were outstanding at the time of their election) and repayments and other reductions (including reductions resulting from retirements) were $2,072,000.

At December 31, 2015, approximately $11.1 billion of commercial loans and leases, $10.4 billion of commercial real estate loans, $20.9 billion of one-to-four family residential real estate loans, $3.9 billion of home equity loans and lines of credit and $3.6 billion of other consumer loans were pledged to secure outstanding borrowings from the FHLB of New York and available lines of credit as described in note 9.

The Company’s loan and lease portfolio includes commercial lease financing receivables consisting of direct financing and leveraged leases for machinery and equipment, railroad equipment, commercial trucks and trailers, and aircraft. A summary of lease financing receivables follows:

 

     December 31  
     2015      2014  
     (In thousands)  

Commercial leases:

      

Direct financings:

      

Lease payments receivable

    $ 1,058,605       $ 1,022,133   

Estimated residual value of leased assets

      81,269         79,525   

Unearned income

      (102,723 )       (103,777 ) 
  

 

 

     

 

 

  

Investment in direct financings

      1,037,151         997,881   

Leveraged leases:

      

Lease payments receivable

      95,316         102,457   

Estimated residual value of leased assets

      118,128         133,089   

Unearned income

      (41,556 )       (44,288 ) 
  

 

 

     

 

 

  

Investment in leveraged leases

      171,888         191,258   
  

 

 

     

 

 

  

Total investment in leases.

    $ 1,209,039       $ 1,189,139   
  

 

 

     

 

 

  

Deferred taxes payable arising from leveraged leases

    $ 160,603       $ 169,101   

Included within the estimated residual value of leased assets at December 31, 2015 and 2014 were $50 million and $48 million, respectively, in residual value associated with direct financing leases that are guaranteed by the lessees or others.

At December 31, 2015, the minimum future lease payments to be received from lease financings were as follows:

 

     (In thousands)  

Year ending December 31:

   

2016

    $ 277,993   

2017

      245,892   

2018

      193,580   

2019

      143,406   

2020

      95,217   

Later years

      197,833   
  

 

 

  
   $ 1,153,921   
  

 

 

  

The amount of foreclosed residential real estate property held by the Company was $172 million and $44 million at December 31, 2015 and 2014, respectively. At December 31, 2015, there were $315 million in loans secured by residential real estate that were in the process of foreclosure.