XML 33 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.
9 Months Ended
Sep. 30, 2018
Text Block [Abstract]  
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

14. 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.  That investment had no remaining carrying value at September 30, 2018 as a result of cumulative losses recognized and cash distributions received.  Income recognized by M&T is included in other revenues from operations and was not significant during the three-month periods ended September 30, 2018 and 2017 or the nine-month period ended September 30, 2017. Income recognized during the nine months ended September 30, 2018 totaled $24 million.

Bayview Financial Holdings, L.P. (together with its affiliates, "Bayview Financial"), a privately-held specialty 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 $2.7 billion and $3.0 billion at September 30, 2018 and December 31, 2017, respectively. Revenues from those servicing rights were $4 million for each of the three-month periods ended September 30, 2018 and 2017, and $11 million and $13 million for the nine-month periods ended September 30, 2018 and 2017, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $60.3 billion and $56.6 billion at September 30, 2018 and December 31, 2017, respectively.  Revenues earned for sub-servicing loans for Bayview Financial were $28 million and $26 million for the three-month periods ended September 30, 2018 and 2017, respectively, and $86 million and $74 million for the nine-month periods ended September 30, 2018 and 2017, respectively. In addition, the Company held $118 million and $136 million of mortgage-backed securities in its held-to-maturity portfolio at September 30, 2018 and December 31, 2017, respectively, that were securitized by Bayview Financial. At September 30, 2018, the Company held $90 million of Bayview Financial’s $750 million syndicated loan facility.