Earnings per common share

3 Months Ended

Mar. 31, 2016

8.	Earnings per common share

The computations of basic earnings per common share follow:


	Three months ended March 31
	2016			2015
	(in thousands, except per share)
Income available to common shareholders:

Net income	$	298,528			241,613
Less: Preferred stock dividends (a)		(20,318	)		(20,318	)

Net income available to common equity		278,210			221,295
Less: Income attributable to unvested stock-based compensation awards		(2,466	)		(2,465	)


Net income available to common shareholders	$	275,744			218,830

Weighted-average shares outstanding:

Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		160,220			133,542
Less: Unvested stock-based compensation awards		(1,486	)		(1,493	)


Weighted-average shares outstanding		158,734			132,049

Basic earnings per common share	$	1.74			1.66

(a)

Including impact of not as yet declared cumulative dividends.

The computations of diluted earnings per common share follow:


	Three months ended March 31
	2016			2015
	(in thousands, except per share)

Net income available to common equity	$	278,210			221,295
Less: Income attributable to unvested stock-based compensation awards		(2,462	)		(2,458	)


Net income available to common shareholders	$	275,748			218,837

Adjusted weighted-average shares outstanding:

Common and unvested stock-based compensation awards		160,220			133,542
Less: Unvested stock-based compensation awards		(1,486	)		(1,493	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		447			720


Adjusted weighted-average shares outstanding		159,181			132,769

Diluted earnings per common share	$	1.73			1.65

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 2.8 million and 2.7 million common shares during the three-month periods ended March 31, 2016 and 2015, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.