Earnings per common share

9 Months Ended

Sep. 30, 2021

9. Earnings per common share

The computations of basic earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2021			2020			2021			2020
	(In thousands, except per share)

Income available to common shareholders:
Net income	$	495,460			372,136			1,400,778			882,012
Less: Preferred stock dividends		(17,050	)		(17,050	)		(51,150	)		(51,178	)
Net income available to common equity		478,410			355,086			1,349,628			830,834
Less: Income attributable to unvested stock-based compensation awards		(2,452	)		(1,687	)		(6,823	)		(3,631	)
Net income available to common shareholders	$	475,958			353,399			1,342,805			827,203
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		129,580			129,061			129,529			129,518
Less: Unvested stock-based compensation awards		(891	)		(776	)		(897	)		(768	)
Weighted-average shares outstanding		128,689			128,285			128,632			128,750

Basic earnings per common share	$	3.70			2.75			10.44		$	6.42

The computations of diluted earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2021			2020			2021			2020
	(In thousands, except per share)

Net income available to common equity	$	478,410			355,086			1,349,628			830,834
Less: Income attributable to unvested stock-based compensation awards		(2,449	)		(1,686	)		(6,816	)		(3,630	)
Net income available to common shareholders	$	475,961			353,400			1,342,812			827,204
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		129,580			129,061			129,529			129,518
Less: Unvested stock-based compensation awards		(891	)		(776	)		(897	)		(768	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		155			70			154			63
Adjusted weighted-average shares outstanding		128,844			128,355			128,786			128,813

Diluted earnings per common share	$	3.69			2.75			10.43		$	6.42

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 to purchase common stock of M&T representing 460,710 and 483,182 common shares during the three-month periods ended September 30, 2021 and 2020, respectively, and 461,792 and 477,144 common shares during the nine-month periods ended September 30, 2021 and 2020, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.