Earnings per common share

9 Months Ended

Sep. 30, 2019

9. Earnings per common share

The computations of basic earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2019			2018			2019			2018
	(In thousands, except per share)

Income available to common shareholders:
Net income	$	480,081			526,091			1,436,083			1,371,861
Less: Preferred stock dividends (a)		(16,103	)		(18,130	)		(52,364	)		(54,390	)
Net income available to common equity		463,978			507,961			1,383,719			1,317,471
Less: Income attributable to unvested stock-based compensation awards		(2,568	)		(2,598	)		(7,591	)		(6,774	)
Net income available to common shareholders	$	461,410			505,363			1,376,128			1,310,697
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		133,703			143,556			136,156			146,177
Less: Unvested stock-based compensation awards		(738	)		(734	)		(745	)		(753	)
Weighted-average shares outstanding		132,965			142,822			135,411			145,424

Basic earnings per common share	$	3.47			3.54			10.16			9.01

(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
	2019			2018			2019			2018
	(In thousands, except per share)

Net income available to common equity	$	463,978			507,961			1,383,719			1,317,471
Less: Income attributable to unvested stock-based compensation awards		(2,568	)		(2,596	)		(7,590	)		(6,768	)
Net income available to common shareholders	$	461,410			505,365			1,376,129			1,310,703
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		133,703			143,556			136,156			146,177
Less: Unvested stock-based compensation awards		(738	)		(734	)		(745	)		(753	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		34			154			32			181
Adjusted weighted-average shares outstanding		132,999			142,976			135,443			145,605

Diluted earnings per common share	$	3.47			3.53			10.16			9.00

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 277,840 and 212,407 common shares during the three-month periods ended September 30, 2019 and 2018, respectively, and 224,639 and 220,653 common shares during the nine-month periods ended September 30, 2019 and 2018, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.