Earnings per common share

9 Months Ended

Sep. 30, 2022

9. Earnings per common share

The computations of basic earnings per common share follow:


	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021
	(In thousands, except per share)

Income available to common shareholders:
Net income	$	646,596		$	495,460		$	1,226,292		$	1,400,778
Less: Preferred stock dividends		(24,941	)		(17,050	)		(71,647	)		(51,150	)
Net income available to common equity		621,655			478,410			1,154,645			1,349,628
Less: Income attributable to unvested stock-based compensation awards		(1,106	)		(2,452	)		(2,245	)		(6,823	)
Net income available to common shareholders	$	620,549		$	475,958		$	1,152,400		$	1,342,805
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		174,921			129,580			160,793			129,529
Less: Unvested stock-based compensation awards		(312	)		(891	)		(319	)		(897	)
Weighted-average shares outstanding		174,609			128,689			160,474			128,632

Basic earnings per common share	$	3.55		$	3.70		$	7.18		$	10.44

The computations of diluted earnings per common share follow:


	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021
	(In thousands, except per share)

Net income available to common equity	$	621,655		$	478,410		$	1,154,645		$	1,349,628
Less: Income attributable to unvested stock-based compensation awards		(1,101	)		(2,449	)		(2,239	)		(6,816	)
Net income available to common shareholders	$	620,554		$	475,961		$	1,152,406		$	1,342,812
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		174,921			129,580			160,793			129,529
Less: Unvested stock-based compensation awards		(312	)		(891	)		(319	)		(897	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		1,073			155			821			154
Adjusted weighted-average shares outstanding		175,682			128,844			161,295			128,786

Diluted earnings per common share	$	3.53		$	3.69		$	7.14		$	10.43

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 252,793 common shares and 314,155 common shares during the three-month and nine-month periods ended September 30, 2022, respectively, and 460,710 common shares and 461,792 common shares during the three-month and nine-month periods ended September 30, 2021, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.