Earnings per common share

6 Months Ended

Jun. 30, 2016

8.	Earnings per common share

The computations of basic earnings per common share follow:


	Three months ended June 30						Six months ended June 30
	2016			2015			2016			2015
	(in thousands, except per share)
Income available to common shareholders:

Net income	$	336,031			286,688			634,559			528,301
Less: Preferred stock dividends (a)		(20,317	)		(20,317	)		(40,635	)		(40,635	)

Net income available to common equity		315,714			266,371			593,924			487,666
Less: Income attributable to unvested stock-based compensation awards		(2,746	)		(2,900	)		(5,227	)		(5,371	)


Net income available to common shareholders	$	312,968			263,471			588,697			482,295

Weighted-average shares outstanding:

Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		159,164			133,818			159,692			133,680
Less: Unvested stock-based compensation awards		(1,362	)		(1,462	)		(1,424	)		(1,477	)


Weighted-average shares outstanding		157,802			132,356			158,268			132,203

Basic earnings per common share	$	1.98			1.99			3.72			3.65

(a)

Including impact of not as yet declared cumulative dividends.

The computations of diluted earnings per common share follow:


	Three months ended June 30						Six months ended June 30
	2016			2015			2016			2015
	(in thousands, except per share)

Net income available to common equity	$	315,714			266,371			593,924			487,666

Less: Income attributable to unvested stock-based compensation awards		(2,740	)		(2,890	)		(5,217	)		(5,353	)


Net income available to common shareholders	$	312,974			263,481			588,707			482,313

Adjusted weighted-average shares outstanding:

Common and unvested stock-based compensation awards		159,164			133,818			159,692			133,680
Less: Unvested stock-based compensation awards		(1,362	)		(1,462	)		(1,424	)		(1,477	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		539			760			493			741


Adjusted weighted-average shares outstanding		158,341			133,116			158,761			132,944

Diluted earnings per common share	$	1.98			1.98			3.71			3.63

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 2.7 million and 1.6 million common shares during the three-month periods ended June 30, 2016 and 2015, respectively, and 2.8 million and 2.1 million common shares during the six-month periods ended June 30, 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.