10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-9861

M&T BANK CORPORATION

(Exact name of registrant as specified in its charter)

New York	16-0968385
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
One M & T Plaza
Buffalo, New York	14203
(Address of principal executive offices)	(Zip Code)

(716) 842-5445

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

Number of shares of the registrant’s Common Stock, $0.50 par value, outstanding as of the close of business on July 31, 2014: 131,965,978 shares.

M&T BANK CORPORATION

FORM 10-Q

For the Quarterly Period Ended June 30, 2014

Table of Contents of Information Required in Report	Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements.
CONSOLIDATED BALANCE SHEET—June 30, 2014 and December 31, 2013		3
CONSOLIDATED STATEMENT OF INCOME—Three and six months ended June 30, 2014 and 2013		4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME—Three and six months ended June 30, 2014 and 2013		5
CONSOLIDATED STATEMENT OF CASH FLOWS—Six months ended June 30, 2014 and 2013		6
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY—Six months ended June 30, 2014 and 2013		7
NOTES TO FINANCIAL STATEMENTS		8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.		57
Item 3. Quantitative and Qualitative Disclosures About Market Risk.		105
Item 4. Controls and Procedures.		105
Part II. OTHER INFORMATION
Item 1. Legal Proceedings.		105
Item 1A. Risk Factors.		106
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.		107
Item 3. Defaults Upon Senior Securities.		107
Item 4. Mine Safety Disclosures.		107
Item 5. Other Information.		107
Item 6. Exhibits.		108
SIGNATURES		108
EXHIBIT INDEX		109

-2-

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (Unaudited)

		June 30,			December 31,
Dollars in thousands, except per share		2014			2013
Assets	Cash and due from banks	$	1,827,197			1,573,361
	Interest-bearing deposits at banks		3,032,530			1,651,138
	Federal funds sold		90,239			99,573
	Trading account		313,325			376,131
	Investment securities (includes pledged securities that can be sold or repledged of $1,620,148 at June 30, 2014; $1,696,438 at December 31, 2013)
	Available for sale (cost: $7,753,752 at June 30, 2014; $4,444,365 at December 31, 2013)		8,008,779			4,531,786
	Held to maturity (fair value: $3,765,849 at June 30, 2014; $3,860,127 at December 31, 2013)		3,760,665			3,966,130
	Other (fair value: $350,751 at June 30, 2014; $298,581 at December 31, 2013)		350,751			298,581
	Total investment securities		12,120,195			8,796,497
	Loans and leases		64,980,824			64,325,783
	Unearned discount		(233,131	)		(252,624	)
	Loans and leases, net of unearned discount		64,747,693			64,073,159
	Allowance for credit losses		(917,666	)		(916,676	)
	Loans and leases, net		63,830,027			63,156,483
	Premises and equipment		625,006			633,520
	Goodwill		3,524,625			3,524,625
	Core deposit and other intangible assets		49,555			68,851
	Accrued interest and other assets		5,422,303			5,282,212
	Total assets	$	90,835,002			85,162,391
Liabilities	Noninterest-bearing deposits	$	26,088,763			24,661,007
	NOW accounts		2,007,336			1,989,441
	Savings deposits		38,209,271			36,621,580
	Time deposits		3,285,995			3,523,838
	Deposits at Cayman Islands office		237,890			322,746
	Total deposits		69,829,255			67,118,612
	Federal funds purchased and agreements to repurchase securities		161,631			260,455
	Accrued interest and other liabilities		1,283,430			1,368,922
	Long-term borrowings		7,391,931			5,108,870
	Total liabilities		78,666,247			73,856,859
Shareholders’ equity	Preferred stock, $1.00 par, 1,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: 731,500 shares at June 30, 2014; 381,500 shares at December 31, 2013; Liquidation preference of $10,000 per share: 50,000 shares at June 30, 2014 and December 31, 2013		1,231,500			881,500
	Common stock, $.50 par, 250,000,000 shares authorized, 131,911,359 shares issued at June 30, 2014; 130,516,364 shares issued at December 31, 2013		65,956			65,258
	Common stock issuable, 41,635 shares at June 30, 2014; 47,231 shares at December 31, 2013		2,600			2,915
	Additional paid-in capital		3,347,314			3,232,014
	Retained earnings		7,481,077			7,188,004
	Accumulated other comprehensive income (loss), net		40,308			(64,159	)
	Total shareholders’ equity		12,168,755			11,305,532
	Total liabilities and shareholders’ equity	$	90,835,002			85,162,391

-3-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

		Three months ended June 30						Six months ended June 30
In thousands, except per share		2014			2013			2014			2013
Interest income	Loans and leases, including fees	$	645,029			705,395		$	1,290,251			1,387,850
	Investment securities
	Fully taxable		85,210			41,293			159,109			86,053
	Exempt from federal taxes		1,293			1,777			2,797			3,606
	Deposits at banks		2,535			1,455			4,419			1,722
	Other		223			287			666			951
	Total interest income		734,290			750,207			1,457,242			1,480,182
Interest expense	NOW accounts		330			321			627			643
	Savings deposits		11,181			13,790			22,782			27,827
	Time deposits		3,855			7,484			7,795			15,680
	Deposits at Cayman Islands office		181			200			389			588
	Short-term borrowings		25			96			57			327
	Long-term borrowings		49,604			50,729			100,045			101,480
	Total interest expense		65,176			72,620			131,695			146,545
	Net interest income		669,114			677,587			1,325,547			1,333,637
	Provision for credit losses		30,000			57,000			62,000			95,000
	Net interest income after provision for credit losses		639,114			620,587			1,263,547			1,238,637
Other income	Mortgage banking revenues		95,656			91,262			175,705			184,365
	Service charges on deposit accounts		107,368			111,717			211,566			222,666
	Trust income		129,893			124,728			251,145			246,331
	Brokerage services income		17,487			17,258			33,987			32,969
	Trading account and foreign exchange gains		8,042			9,224			14,489			18,151
	Gain on bank investment securities		—			56,457			—			56,457
	Total other-than-temporary impairment (“OTTI”) losses		—			—			—			(1,884	)
	Portion of OTTI losses recognized in other comprehensive income (before taxes)		—			—			—			(7,916	)
	Net OTTI losses recognized in earnings		—			—			—			(9,800	)
	Equity in earnings of Bayview Lending Group LLC		(4,055	)		(2,453	)		(8,509	)		(6,109	)
	Other revenues from operations		102,021			100,496			198,136			196,541
	Total other income		456,412			508,689			876,519			941,571
Other expense	Salaries and employee benefits		339,713			323,136			711,039			679,687
	Equipment and net occupancy		68,084			64,278			139,251			129,437
	Printing, postage and supplies		9,180			10,298			20,136			20,997
	Amortization of core deposit and other intangible assets		9,234			12,502			19,296			25,845
	FDIC assessments		15,155			17,695			30,643			37,133
	Other costs of operations		239,828			170,682			463,100			341,088
	Total other expense		681,194			598,591			1,383,465			1,234,187
	Income before taxes		414,332			530,685			756,601			946,021
	Income taxes		129,996			182,219			243,248			323,442
	Net income	$	284,336			348,466		$	513,353			622,579
	Net income available to common shareholders
	Basic	$	260,680			328,538		$	472,404			583,597
	Diluted		260,695			328,557			472,429			583,633
	Net income per common share
	Basic	$	1.99			2.56		$	3.62			4.56
	Diluted		1.98			2.55			3.59			4.53
	Cash dividends per common share	$	.70			.70		$	1.40			1.40
	Average common shares outstanding
	Basic		130,856			128,252			130,536			127,962
	Diluted		131,828			129,017			131,479			128,828

-4-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

	Three months ended June 30						Six months ended June 30
In thousands	2014			2013			2014			2013
Net income	$	284,336			348,466		$	513,353			622,579
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities		64,652			(6,722	)		102,866			3,357
Unrealized losses on cash flow hedges		(711	)		—			(711	)		—
Foreign currency translation adjustment		449			(114	)		313			(1,046	)
Defined benefit plans liability adjustment		1,179			5,018			1,999			10,182
Total other comprehensive income (loss)		65,569			(1,818	)		104,467			12,493
Total comprehensive income	$	349,905			346,648		$	617,820			635,072

-5-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

		Six months ended June 30
In thousands		2014			2013
Cash flows from operating activities	Net income	$	513,353			622,579
	Adjustments to reconcile net income to net cash provided by operating activities
	Provision for credit losses		62,000			95,000
	Depreciation and amortization of premises and equipment		49,133			43,354
	Amortization of capitalized servicing rights		34,868			30,653
	Amortization of core deposit and other intangible assets		19,296			25,845
	Provision for deferred income taxes		40,964			30,373
	Asset write-downs		2,015			15,043
	Net gain on sales of assets		(1,991	)		(59,134	)
	Net change in accrued interest receivable, payable		10,036			(1,131	)
	Net change in other accrued income and expense		(82,817	)		20,336
	Net change in loans originated for sale		(192,521	)		(220,784	)
	Net change in trading account assets and liabilities		15,168			14,362
	Net cash provided by operating activities		469,504			616,496
Cash flows from investing activities	Proceeds from sales of investment securities
	Available for sale		16			1,081,496
	Other		734			5,439
	Proceeds from maturities of investment securities
	Available for sale		375,372			652,074
	Held to maturity		211,005			141,255
	Purchases of investment securities
	Available for sale		(3,609,758	)		(39,411	)
	Held to maturity		(10,745	)		(11,252	)
	Other		(52,904	)		(8,540	)
	Net increase in loans and leases		(566,803	)		(228,853	)
	Net increase in interest-bearing deposits at banks		(1,381,392	)		(2,425,409	)
	Capital expenditures, net		(37,747	)		(43,663	)
	Net (increase) decrease in loan servicing advances		(257,704	)		47,290
	Other, net		16,990			38,072
	Net cash used by investing activities		(5,312,936	)		(791,502	)
Cash flows from financing activities	Net increase in deposits		2,712,470			54,101
	Net decrease in short-term borrowings		(98,824	)		(766,742	)
	Proceeds from long-term borrowings		2,647,688			799,760
	Payments on long-term borrowings		(360,345	)		(257,178	)
	Proceeds from issuance of preferred stock		346,500			—
	Dividends paid—common		(185,134	)		(181,842	)
	Dividends paid—preferred		(29,348	)		(26,725	)
	Other, net		54,927			41,519
	Net cash provided (used) by financing activities		5,087,934			(337,107	)
	Net increase (decrease) in cash and cash equivalents		244,502			(512,113	)
	Cash and cash equivalents at beginning of period		1,672,934			1,986,615
	Cash and cash equivalents at end of period	$	1,917,436			1,474,502
Supplemental disclosure of cash flow information	Interest received during the period	$	1,420,720			1,459,142
	Interest paid during the period		120,109			151,737
	Income taxes paid during the period		198,028			226,406
Supplemental schedule of noncash investing and financing activities	Securitization of residential mortgage loans allocated to
	Available-for-sale investment securities	$	76,097			—
	Held to maturity investment securities		—			917,045
	Capitalized servicing rights		976			8,907
	Real estate acquired in settlement of loans		18,677			15,502

-6-

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

In thousands, except per share	Preferred stock		Common stock		Common stock issuable			Additional paid-in capital			Retained earnings			Accumulated other comprehensive income (loss), net			Total
2013
Balance—January 1, 2013	$	872,500		64,088		3,473			3,025,520			6,477,276			(240,264	)		10,202,593
Total comprehensive income		—		—		—			—			622,579			12,493			635,072
Preferred stock cash dividends		—		—		—			—			(26,725	)		—			(26,725	)
Amortization of preferred stock discount		4,296		—		—			—			(4,296	)		—			—
Exercise of 407,542 Series C stock warrants into 186,589 shares of common stock		—		93		—			(93	)		—			—			—
Stock-based compensation plans:
Compensation expense, net		—		153		—			21,056			—			—			21,209
Exercises of stock options, net		—		366		—			63,505			—			—			63,871
Directors’ stock plan		—		4		—			793			—			—			797
Deferred compensation plans, net, including dividend equivalents		—		5		(613	)		564			(66	)					(110	)
Other		—		—		—			1,321			—			—			1,321
Common stock cash dividends—$1.40 per share		—		—		—			—			(181,698	)		—			(181,698	)
Balance—June 30, 2013	$	876,796		64,709		2,860			3,112,666			6,887,070			(227,771	)		10,716,330
2014
Balance—January 1, 2014	$	881,500		65,258		2,915			3,232,014			7,188,004			(64,159	)		11,305,532
Total comprehensive income		—		—		—			—			513,353			104,467			617,820
Preferred stock cash dividends		—		—		—			—			(35,117	)		—			(35,117	)
Issuance of Series E preferred stock		350,000		—		—			(3,500	)		—			—			346,500
Exercise of 379,376 Series A stock warrants into 149,834 shares of common stock		—		75		—			(75	)		—			—			—
Stock-based compensation plans:
Compensation expense, net		—		131		—			23,250			—			—			23,381
Exercises of stock options, net		—		442		—			84,002			—			—			84,444
Stock purchase plan		—		43		—			9,545			—			—			9,588
Directors’ stock plan		—		4		—			875			—			—			879
Deferred compensation plans, net, including dividend equivalents		—		3		(315	)		309			(58	)		—			(61	)
Other		—		—		—			894			—			—			894
Common stock cash dividends—$1.40 per share		—		—		—			—			(185,105	)		—			(185,105	)
Balance—June 30, 2014	$	1,231,500		65,956		2,600			3,347,314			7,481,077			40,308			12,168,755

-7-

NOTES TO FINANCIAL STATEMENTS

1. Significant accounting policies

The consolidated financial statements of M&T Bank Corporation (“M&T”) and subsidiaries (“the Company”) were compiled in accordance with generally accepted accounting principles (“GAAP”) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2013 Annual Report. In the opinion of management, all adjustments necessary for a fair presentation have been made and were all of a normal recurring nature.

2. Acquisitions

On August 27, 2012, M&T announced that it had entered into a definitive agreement with Hudson City Bancorp, Inc. (“Hudson City”), headquartered in Paramus, New Jersey, under which Hudson City would be acquired by M&T. Pursuant to the terms of the agreement, Hudson City shareholders will receive consideration for each common share of Hudson City in an amount valued at .08403 of an M&T share in the form of either M&T common stock or cash, based on the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of 60% common stock of M&T and 40% cash). As of June 30, 2014, total consideration to be paid was valued at approximately $5.4 billion.

At June 30, 2014, Hudson City had $37.7 billion of assets, including $23.3 billion of loans and $8.2 billion of investment securities, and $32.9 billion of liabilities, including $20.5 billion of deposits. The merger has received the approval of the common shareholders of M&T and Hudson City. However, the merger is subject to a number of other conditions, including regulatory approvals.

On June 17, 2013, M&T and Manufacturers and Traders Trust Company (“M&T Bank”), M&T’s principal banking subsidiary, entered into a written agreement with the Federal Reserve Bank of New York (“Federal Reserve Bank”). Under the terms of the agreement, M&T and M&T Bank are required to submit to the Federal Reserve Bank a revised compliance risk management program designed to ensure compliance with the Bank Secrecy Act and anti-money-laundering laws and regulations and to take certain other steps to enhance their compliance practices. The Company has commenced a major initiative, including the hiring of outside consulting firms, intended to fully address the Federal Reserve Bank’s concerns. In view of the timeframe required to implement this initiative, demonstrate its efficacy to the satisfaction of the Federal Reserve Bank and otherwise meet any other regulatory requirements that may be imposed in connection with these matters, M&T and Hudson City extended the date after which either party may elect to terminate the merger agreement if the merger has not yet been completed to December 31, 2014. Nevertheless, there can be no assurances that the merger will be completed by that date.

In connection with the pending acquisition, the Company incurred merger-related expenses related to preparing for systems conversions and other costs of integrating and conforming acquired operations with and into the Company. Those expenses consisted largely of professional services and other temporary help fees associated with planning for the conversion of systems and/or integration of operations; initial marketing and promotion expenses designed to introduce M&T Bank to its new customers; travel costs; and printing, postage, supplies and other costs of planning for the transaction and commencing operations in new markets and offices.

-8-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

2. Acquisitions, continued

A summary of merger-related expenses incurred in 2013 associated with the pending Hudson City acquisition included in the consolidated statement of income is presented below. There were no merger-related expenses during the three months or six months ended June 30, 2014.

	Three months ended		Six months ended
	June 30, 2013		June 30, 2013
	(in thousands)
Salaries and employee benefits	$	300	$	836
Equipment and net occupancy		489		690
Printing, postage and supplies		998		1,825
Other costs of operations		5,845		9,013
	$	7,632	$	12,364

-9-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
June 30, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	42,600		324		3	$	42,921
Obligations of states and political subdivisions		9,999		302		59		10,242
Mortgage-backed securities:
Government issued or guaranteed		7,426,259		191,716		348		7,617,627
Privately issued		119		4		4		119
Collateralized debt obligations		32,548		24,100		448		56,200
Other debt securities		138,362		2,185		15,784		124,763
Equity securities		103,865		54,119		1,077		156,907
		7,753,752		272,750		17,723		8,008,779
Investment securities held to maturity:
Obligations of states and political subdivisions		154,733		3,289		88		157,934
Mortgage-backed securities:
Government issued or guaranteed		3,387,213		67,816		14,881		3,440,148
Privately issued		210,388		—		50,952		159,436
Other debt securities		8,331		—		—		8,331
		3,760,665		71,105		65,921		3,765,849
Other securities		350,751		—		—		350,751
Total	$	11,865,168		343,855		83,644	$	12,125,379
December 31, 2013
Investment securities available for sale:
U.S. Treasury and federal agencies	$	37,396		382		2	$	37,776
Obligations of states and political subdivisions		10,484		333		6		10,811
Mortgage-backed securities:
Government issued or guaranteed		4,123,435		61,001		19,350		4,165,086
Privately issued		1,468		387		5		1,850
Collateralized debt obligations		42,274		21,666		857		63,083
Other debt securities		137,828		1,722		19,465		120,085
Equity securities		91,480		41,842		227		133,095
		4,444,365		127,333		39,912		4,531,786
Investment securities held to maturity:
Obligations of states and political subdivisions		169,684		3,744		135		173,293
Mortgage-backed securities:
Government issued or guaranteed		3,567,905		16,160		65,149		3,518,916
Privately issued		219,628		—		60,623		159,005
Other debt securities		8,913		—		—		8,913
		3,966,130		19,904		125,907		3,860,127
Other securities		298,581		—		—		298,581
Total	$	8,709,076		147,237		165,819	$	8,690,494

-10-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

There were no gross realized gains or losses from the sale of investment securities for the three-month and six-month periods ended June 30, 2014. Gross realized gains on investment securities were $116 million for the three-month and six-month periods ended June 30, 2013. During the second quarter of 2013, the Company sold its holdings of Visa Class B shares for a gain of approximately $90 million and its holdings of MasterCard Class B shares for a gain of $13 million. Gross realized losses on investment securities were $60 million for the three-month and six-month periods ended June 30, 2013. During the second quarter of 2013, the Company sold substantially all of its privately issued mortgage-backed securities that had been held in the available-for-sale investment securities portfolio. In total, $1.0 billion of such securities were sold for a net loss of approximately $46 million.

There were $10 million of pre-tax other-than-temporary impairment (“OTTI”) losses recognized during the first quarter of 2013 related to privately issued mortgage-backed securities. The impairment charges were recognized in light of deterioration of real estate values and a rise in delinquencies and charge-offs of underlying mortgage loans collateralizing those securities. The OTTI losses represented management’s estimate of credit losses inherent in the debt securities considering projected cash flows using assumptions for delinquency rates, loss severities, and other estimates of future collateral performance. The Company did not recognize any OTTI losses during the first or second quarters of 2014 or the second quarter of 2013.

Changes in credit losses associated with debt securities for which OTTI losses had been recognized in earnings for the three months and six months ended June 30, 2013 follow:

	Three months ended			Six months ended
	June 30, 2013			June 30, 2013
	(in thousands)
Beginning balance	$	187,114			197,809
Additions for credit losses not previously recognized		—			9,800
Reductions for realized losses		(186,320	)		(206,815	)
Ending balance	$	794			794

There were no significant credit losses associated with debt securities held by the Company as of June 30, 2014 or December 31, 2013.

-11-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

At June 30, 2014, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

	Amortized cost		Estimated fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	7,513		7,592
Due after one year through five years		46,209		46,952
Due after five years through ten years		5,009		5,145
Due after ten years		164,778		174,437
		223,509		234,126
Mortgage-backed securities available for sale		7,426,378		7,617,746
	$	7,649,887		7,851,872
Debt securities held to maturity:
Due in one year or less	$	21,159		21,326
Due after one year through five years		78,588		80,389
Due after five years through ten years		54,986		56,219
Due after ten years		8,331		8,331
		163,064		166,265
Mortgage-backed securities held to maturity		3,597,601		3,599,584
	$	3,760,665		3,765,849

-12-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

A summary of investment securities that as of June 30, 2014 and December 31, 2013 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

	Less than 12 months					12 months or more
	Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
June 30, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	5,865		(3	)		—		—
Obligations of states and political subdivisions		1,832		(55	)		437		(4	)
Mortgage-backed securities:
Government issued or guaranteed		42,896		(158	)		8,254		(190	)
Privately issued		—		—			77		(4	)
Collateralized debt obligations		2,633		(114	)		5,557		(334	)
Other debt securities		157		(10	)		99,118		(15,774	)
Equity securities		3,240		(1,077	)		—		—
		56,623		(1,417	)		113,443		(16,306	)
Investment securities held to maturity:
Obligations of states and political subdivisions		8,329		(34	)		3,753		(54	)
Mortgage-backed securities:
Government issued or guaranteed		140,724		(878	)		730,795		(14,003	)
Privately issued		—		—			159,436		(50,952	)
		149,053		(912	)		893,984		(65,009	)
Total	$	205,676		(2,329	)		1,007,427		(81,315	)
December 31, 2013
Investment securities available for sale:
U.S. Treasury and federal agencies	$	745		(2	)		—		—
Obligations of states and political subdivisions		—		—			558		(6	)
Mortgage-backed securities:
Government issued or guaranteed		1,697,094		(19,225	)		5,815		(125	)
Privately issued		—		—			98		(5	)
Collateralized debt obligations		—		—			6,257		(857	)
Other debt securities		1,428		(4	)		103,602		(19,461	)
Equity securities		159		(227	)		—		—
		1,699,426		(19,458	)		116,330		(20,454	)
Investment securities held to maturity:
Obligations of states and political subdivisions		13,517		(120	)		1,558		(15	)
Mortgage-backed securities:
Government issued or guaranteed		2,629,950		(65,149	)		—		—
Privately issued		—		—			159,005		(60,623	)
		2,643,467		(65,269	)		160,563		(60,638	)
Total	$	4,342,893		(84,727	)		276,893		(81,092	)

-13-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

The Company owned 289 individual investment securities with aggregate gross unrealized losses of $84 million at June 30, 2014. Based on a review of each of the securities in the investment securities portfolio at June 30, 2014, the Company concluded that it expected to recover the amortized cost basis of its investment. As of June 30, 2014, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At June 30, 2014, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $351 million of cost method investment securities.

4. Loans and leases and the allowance for credit losses

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date and included in the consolidated balance sheet follow:

	June 30,		December 31,
	2014		2013
	(in thousands)
Outstanding principal balance	$	3,828,214		4,656,811
Carrying amount:
Commercial, financial, leasing, etc.		396,166		580,685
Commercial real estate		1,285,386		1,541,368
Residential real estate		515,791		576,473
Consumer		1,051,728		1,308,926
	$	3,249,071		4,007,452

Purchased impaired loans included in the table above totaled $283 million at June 30, 2014 and $331 million at December 31, 2013, representing less than 1% of the Company’s assets as of each date. A summary of changes in the accretable yield for acquired loans for the three months and six months ended June 30, 2014 and 2013 follows:

	Three months ended June 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	30,939			485,162		$	33,728			577,609
Interest income		(5,106	)		(43,452	)		(9,747	)		(67,539	)
Reclassifications from nonaccretable balance, net		249			774			31,168			111,702
Other (a)		—			8,486			—			321
Balance at end of period	$	26,082			450,970		$	55,149			622,093

-14-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

	Six months ended June 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	37,230			538,633		$	42,252			638,272
Interest income		(11,434	)		(96,085	)		(18,451	)		(129,286	)
Reclassifications from nonaccretable balance, net		286			774			31,348			122,519
Other (a)		—			7,648			—			(9,412	)
Balance at end of period	$	26,082			450,970		$	55,149			622,093

(a) Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

A summary of current, past due and nonaccrual loans as of June 30, 2014 and December 31, 2013 follows:

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
	(in thousands)
June 30, 2014
Commercial, financial, leasing, etc.	$	18,831,026		56,292		3,910		5,769		16,702		192,193	$	19,105,892
Real estate:
Commercial		21,335,953		142,904		9,862		36,554		82,554		188,951		21,796,778
Residential builder and developer		1,203,959		10,417		—		9,505		111,937		83,624		1,419,442
Other commercial construction		3,075,240		11,764		—		4,018		43,511		23,521		3,158,054
Residential		7,499,250		261,083		270,492		42,245		25,231		198,816		8,297,117
Residential Alt-A		258,899		22,064		—		—		—		78,686		359,649
Consumer:
Home equity lines and loans		5,917,670		34,440		—		25,577		2,582		83,991		6,064,260
Automobile		1,621,311		23,629		—		218		—		16,075		1,661,233
Other		2,821,175		34,370		4,752		10,694		—		14,277		2,885,268
Total	$	62,564,483		596,963		289,016		134,580		282,517		880,134	$	64,747,693

-15-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
					(in thousands)
December 31, 2013
Commercial, financial, leasing, etc.	$	18,489,474		77,538		4,981		6,778		15,706		110,739	$	18,705,216
Real estate:
Commercial		21,236,071		145,749		63,353		35,603		88,034		173,048		21,741,858
Residential builder and developer		1,025,984		8,486		141		7,930		137,544		96,427		1,276,512
Other commercial construction		2,986,598		42,234		—		8,031		57,707		35,268		3,129,838
Residential		7,630,368		295,131		294,649		43,700		29,184		252,805		8,545,837
Residential Alt-A		283,253		18,009		—		—		—		81,122		382,384
Consumer:
Home equity lines and loans		5,972,365		40,537		—		27,754		2,617		78,516		6,121,789
Automobile		1,314,246		29,144		—		366		—		21,144		1,364,900
Other		2,726,522		47,830		5,386		—		—		25,087		2,804,825
Total	$	61,664,881		704,658		368,510		130,162		330,792		874,156	$	64,073,159

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and were recorded at fair value.

One-to-four family residential mortgage loans originated for sale were $419 million and $401 million at June 30, 2014 and December 31, 2013, respectively. Commercial mortgage loans held for sale were $205 million at June 30, 2014 and $68 million at December 31, 2013.

Changes in the allowance for credit losses for the three months ended June 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	276,835			324,805			77,062			162,134			75,932		$	916,768
Provision for credit losses		25,556			(12,229	)		(1,957	)		18,676			(46	)		30,000
Net charge-offs
Charge-offs		(14,142	)		(2,814	)		(5,478	)		(19,404	)		—			(41,838	)
Recoveries		4,002			1,492			2,777			4,465			—			12,736
Net charge-offs		(10,140	)		(1,322	)		(2,701	)		(14,939	)		—			(29,102	)
Ending balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666

-16-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

Changes in the allowance for credit losses for the three months ended June 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	257,851			328,016			90,122			176,793			74,335		$	927,117
Provision for credit losses		55,647			(10,913	)		(1,438	)		13,707			(3	)		57,000
Net charge-offs
Charge-offs		(46,312	)		(4,204	)		(5,092	)		(21,018	)		—			(76,626	)
Recoveries		1,681			11,365			1,719			4,809			—			19,574
Net charge-offs		(44,631	)		7,161			(3,373	)		(16,209	)		—			(57,052	)
Ending balance	$	268,867			324,264			85,311			174,291			74,332		$	927,065

Changes in the allowance for credit losses for the six months ended June 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		38,154			(12,113	)		2,271			32,817			871		62,000
Net charge-offs
Charge-offs		(28,951	)		(6,300	)		(12,931	)		(41,095	)		—		(89,277	)
Recoveries		9,665			4,689			4,408			9,505			—		28,267
Net charge-offs		(19,286	)		(1,611	)		(8,523	)		(31,590	)		—		(61,010	)
Ending balance	$	292,251			311,254			72,404			165,871			75,886	$	917,666

Changes in the allowance for credit losses for the six months ended June 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	246,759			337,101			88,807			179,418			73,775	$	925,860
Provision for credit losses		73,527			(11,225	)		3,598			28,543			557		95,000
Net charge-offs
Charge-offs		(55,856	)		(13,792	)		(13,263	)		(42,663	)		—		(125,574	)
Recoveries		4,437			12,180			6,169			8,993			—		31,779
Net charge-offs		(51,419	)		(1,612	)		(7,094	)		(33,670	)		—		(93,795	)
Ending balance	$	268,867			324,264			85,311			174,291			74,332	$	927,065

Despite the above allocation, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type.

-17-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

In establishing the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and detailed or intensified credit review processes and also estimates losses inherent in other loans and leases on a collective basis. For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolio by loan type. The amounts of loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial and commercial real estate loans that are in nonaccrual status and by applying loss factors to groups of loan balances based on loan type and management’s classification of such loans under the Company’s loan grading system. Measurement of the specific loss components is typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. In determining the allowance for credit losses, the Company utilizes a loan grading system which is applied to commercial and commercial real estate credits on an individual loan basis. Loan officers are responsible for continually assigning grades to these loans based on standards outlined in the Company’s Credit Policy. Internal loan grades are also monitored by the Company’s loan review department to ensure consistency and strict adherence to the prescribed standards. Loan grades are assigned loss component factors that reflect the Company’s loss estimate for each group of loans and leases. Factors considered in assigning loan grades and loss component factors include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information; levels of and trends in portfolio charge-offs and recoveries; levels of and trends in portfolio delinquencies and impaired loans; changes in the risk profile of specific portfolios; trends in volume and terms of loans; effects of changes in credit concentrations; and observed trends and practices in the banking industry. As updated appraisals are obtained on individual loans or other events in the market place indicate that collateral values have significantly changed, individual loan grades are adjusted as appropriate. Changes in other factors cited may also lead to loan grade changes at any time. Except for consumer and residential mortgage loans that are considered smaller balance homogenous loans and acquired loans that are evaluated on an aggregated basis, the Company considers a loan to be impaired for purposes of applying GAAP when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days. Regardless of loan type, the Company considers a loan to be impaired if it qualifies as a troubled debt restructuring. Modified loans, including smaller balance homogenous loans, that are considered to be troubled debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows.

-18-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The following tables provide information with respect to loans and leases that were considered impaired as of June 30, 2014 and December 31, 2013 and for the three months and six months ended June 30, 2014 and June 30, 2013:

	June 30, 2014						December 31, 2013
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	165,446		189,110		39,874		90,293		112,092		24,614
Real estate:
Commercial		95,543		112,623		16,330		113,570		132,325		19,520
Residential builder and developer		28,048		36,634		1,694		33,311		55,122		4,379
Other commercial construction		71,379		74,401		4,883		86,260		90,515		4,022
Residential		90,895		109,723		4,103		96,508		114,521		7,146
Residential Alt-A		108,426		123,349		12,000		111,911		124,528		14,000
Consumer:
Home equity lines and loans		19,358		20,424		5,877		13,672		14,796		3,312
Automobile		35,426		35,426		9,248		40,441		40,441		11,074
Other		18,561		18,561		4,831		17,660		17,660		4,541
		633,082		720,251		98,840		603,626		702,000		92,608
With no related allowance recorded:
Commercial, financial, leasing, etc.		52,913		55,167		—		28,093		33,095		—
Real estate:
Commercial		102,890		124,701		—		65,271		84,333		—
Residential builder and developer		66,149		99,746		—		72,366		104,768		—
Other commercial construction		9,453		14,306		—		7,369		11,493		—
Residential		19,681		29,512		—		84,144		95,358		—
Residential Alt-A		24,523		44,784		—		28,357		52,211		—
		275,609		368,216		—		285,600		381,258		—
Total:
Commercial, financial, leasing, etc.		218,359		244,277		39,874		118,386		145,187		24,614
Real estate:
Commercial		198,433		237,324		16,330		178,841		216,658		19,520
Residential builder and developer		94,197		136,380		1,694		105,677		159,890		4,379
Other commercial construction		80,832		88,707		4,883		93,629		102,008		4,022
Residential		110,576		139,235		4,103		180,652		209,879		7,146
Residential Alt-A		132,949		168,133		12,000		140,268		176,739		14,000
Consumer:
Home equity lines and loans		19,358		20,424		5,877		13,672		14,796		3,312
Automobile		35,426		35,426		9,248		40,441		40,441		11,074
Other		18,561		18,561		4,831		17,660		17,660		4,541
Total	$	908,691		1,088,467		98,840		889,226		1,083,258		92,608

-19-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

	Three months ended June 30, 2014						Three months ended June 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	150,625		220		220		183,544		3,408		3,408
Real estate:
Commercial		207,633		869		869		201,236		409		409
Residential builder and developer		91,614		39		39		162,567		518		384
Other commercial construction		77,801		356		356		97,975		2,479		2,479
Residential		119,133		5,056		4,468		185,751		1,934		1,401
Residential Alt-A		134,895		1,733		660		151,977		1,670		516
Consumer:
Home equity lines and loans		18,762		200		72		12,619		165		39
Automobile		36,631		589		74		44,641		740		131
Other		18,309		166		49		15,564		156		49
Total	$	855,403		9,228		6,807		1,055,874		11,479		8,816
	Six months ended June 30, 2014						Six months ended June 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	142,466		768		768		172,637		5,842		5,842
Real estate:
Commercial		196,529		1,795		1,795		197,546		712		712
Residential builder and developer		96,434		113		113		173,535		658		449
Other commercial construction		82,546		1,443		1,443		98,160		3,114		3,114
Residential		146,651		6,456		5,370		186,582		3,404		2,323
Residential Alt-A		137,273		3,359		1,219		154,461		3,410		1,107
Consumer:
Home equity lines and loans		17,219		321		101		12,544		332		78
Automobile		38,007		1,214		161		46,134		1,516		277
Other		18,005		340		101		15,261		307		103
Total	$	875,130		15,809		11,071		1,056,860		19,295		14,005

-20-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

In accordance with the previously described policies, the Company utilizes a loan grading system that is applied to all commercial loans and commercial real estate loans. Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan. Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. All larger balance criticized commercial and commercial real estate loans are individually reviewed by centralized loan review personnel each quarter to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. Smaller balance criticized loans are analyzed by business line risk management areas to ensure proper loan grade classification. Furthermore, criticized nonaccrual commercial loans and commercial real estate loans are considered impaired and, as a result, specific loss allowances on such loans are established within the allowance for credit losses to the extent appropriate in each individual instance. The following table summarizes the loan grades applied to the various classes of the Company’s commercial and commercial real estate loans.

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
June 30, 2014
Pass	$	18,287,252		21,012,039		1,277,387		3,079,596
Criticized accrual		626,447		595,788		58,431		54,937
Criticized nonaccrual		192,193		188,951		83,624		23,521
Total	$	19,105,892		21,796,778		1,419,442		3,158,054
December 31, 2013
Pass	$	17,894,592		20,972,257		1,107,144		3,040,106
Criticized accrual		699,885		596,553		72,941		54,464
Criticized nonaccrual		110,739		173,048		96,427		35,268
Total	$	18,705,216		21,741,858		1,276,512		3,129,838

In determining the allowance for credit losses, residential real estate loans and consumer loans are generally evaluated collectively after considering such factors as payment performance and recent loss experience and trends, which are mainly driven by current collateral values in the market place as well as the amount of loan defaults. Loss rates on such loans are determined by reference to recent charge-off history and are evaluated (and adjusted if deemed appropriate) through consideration of other factors including near-term forecasted loss estimates developed by the Company’s Credit Department. In arriving at such forecasts, the Company considers the current estimated fair value of its collateral based on geographical adjustments for home price depreciation/appreciation and overall borrower repayment performance. With regard to collateral values, the realizability of such values by the Company contemplates repayment of the original balance of any first lien position prior to recovering amounts on a second lien position. However, residential real estate loans and outstanding balances of home equity loans and lines of credit that are more than 150 days past due are generally evaluated for collectibility on a loan-by-loan basis giving consideration to estimated collateral values.

-21-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The Company also measures additional losses for purchased impaired loans when it is probable that the Company will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. The determination of the allocated portion of the allowance for credit losses is very subjective. Given that inherent subjectivity and potential imprecision involved in determining the allocated portion of the allowance for credit losses, the Company also provides an inherent unallocated portion of the allowance. The unallocated portion of the allowance is intended to recognize probable losses that are not otherwise identifiable and includes management’s subjective determination of amounts necessary to provide for the possible use of imprecise estimates in determining the allocated portion of the allowance. Therefore, the level of the unallocated portion of the allowance is primarily reflective of the inherent imprecision in the various calculations used in determining the allocated portion of the allowance for credit losses. Other factors that could also lead to changes in the unallocated portion include the effects of expansion into new markets for which the Company does not have the same degree of familiarity and experience regarding portfolio performance in changing market conditions, the introduction of new loan and lease product types, and other risks associated with the Company’s loan portfolio that may not be specifically identifiable.

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
June 30, 2014
Individually evaluated for impairment	$	39,874		22,576		16,084		19,956	$	98,490
Collectively evaluated for impairment		247,542		287,975		54,604		145,199		735,320
Purchased impaired		4,835		703		1,716		716		7,970
Allocated	$	292,251		311,254		72,404		165,871		841,780
Unallocated										75,886
Total									$	917,666
December 31, 2013
Individually evaluated for impairment	$	24,614		27,563		21,127		18,927	$	92,231
Collectively evaluated for impairment		246,096		296,781		55,864		144,210		742,951
Purchased impaired		2,673		634		1,665		1,507		6,479
Allocated	$	273,383		324,978		78,656		164,644		841,661
Unallocated										75,015
Total									$	916,676

-22-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
June 30, 2014
Individually evaluated for impairment	$	218,359		371,950		242,967		73,345	$	906,621
Collectively evaluated for impairment		18,870,831		25,764,322		8,388,568		10,534,834		63,558,555
Purchased impaired		16,702		238,002		25,231		2,582		282,517
Total	$	19,105,892		26,374,274		8,656,766		10,610,761	$	64,747,693
December 31, 2013
Individually evaluated for impairment	$	118,386		376,339		320,360		71,773	$	886,858
Collectively evaluated for impairment		18,571,124		25,488,584		8,578,677		10,217,124		62,855,509
Purchased impaired		15,706		283,285		29,184		2,617		330,792
Total	$	18,705,216		26,148,208		8,928,221		10,291,514	$	64,073,159

During the normal course of business, the Company modifies loans to maximize recovery efforts. If the borrower is experiencing financial difficulty and a concession is granted, the Company considers such modifications as troubled debt restructurings and classifies those loans as either nonaccrual loans or renegotiated loans. The types of concessions that the Company grants typically include principal deferrals and interest rate concessions, but may also include other types of concessions.

-23-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended June 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Three months ended June 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		21	$	4,414	$	4,351	$	(63	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		3		9,795		9,727		(68	)		(10	)
Real estate:
Commercial
Principal deferral		11		8,327		8,314		(13	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		1		63		61		(2	)		(9	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Other commercial construction
Principal deferral		2		6,407		6,318		(89	)		—
Residential
Principal deferral		3		142		166		24			—
Combination of concession types		8		923		991		68			(66	)
Residential Alt-A
Principal deferral		3		662		698		36			—
Combination of concession types		6		1,006		1,029		23			(220	)
Consumer:
Home equity lines and loans
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		21		1,772		1,772		—			(204	)
Automobile
Principal deferral		43		603		603		—			—
Interest rate reduction		3		60		60		—			(3	)
Other		8		47		47		—			—
Combination of concession types		23		341		341		—			(36	)
Other
Principal deferral		7		38		38		—			—
Interest rate reduction		3		291		291		—			(63	)
Combination of concession types		19		906		906		—			(276	)
Total		193	$	57,384	$	57,297	$	(87	)	$	(1,011	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

-24-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

			Recorded investment				Financial effects of modification
Three months ended June 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	4,870	$	4,822	$	(48	)	$	—
Other		1		1,460		1,657		197			—
Combination of concession types		2		1,490		980		(510	)		—
Real estate:
Commercial
Principal deferral		5		15,549		15,530		(19	)		—
Residential builder and developer
Principal deferral		7		17,496		16,722		(774	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		2		13,879		13,823		(56	)		(535	)
Other commercial construction
Principal deferral		2		364		363		(1	)		—
Residential
Principal deferral		8		1,216		1,358		142			—
Combination of concession types		18		69,210		65,890		(3,320	)		(186	)
Residential Alt-A
Principal deferral		1		99		102		3			—
Combination of concession types		8		1,187		1,294		107			(278	)
Consumer:
Home equity lines and loans
Principal deferral		2		101		103		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		8		406		406		—			(64	)
Automobile
Principal deferral		117		1,629		1,629		—			—
Interest rate reduction		7		104		104		—			(10	)
Other		28		73		73		—			—
Combination of concession types		62		1,044		1,044		—			(87	)
Other
Principal deferral		14		185		185		—			—
Interest rate reduction		1		12		12		—			(2	)
Combination of concession types		30		707		707		—			(234	)
Total		341	$	135,325	$	130,897	$	(4,428	)	$	(1,404	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

-25-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the six months ended June 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Six months ended June 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		51	$	19,368	$	19,199	$	(169	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		24		15,371		15,316		(55	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		2		409		462		53			(113	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Other commercial construction
Principal deferral		3		6,558		6,469		(89	)		—
Residential
Principal deferral		16		1,744		1,829		85			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		22		3,111		3,151		40			(348	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		16		2,752		2,765		13			(281	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		36		3,628		3,628		—			(376	)
Automobile
Principal deferral		123		1,596		1,596		—			—
Interest rate reduction		3		60		60		—			(3	)
Other		19		108		108		—			—
Combination of concession types		46		591		591		—			(62	)
Other
Principal deferral		15		93		93		—			—
Interest rate reduction		3		291		291		—			(63	)
Other		1		45		45		—			—
Combination of concession types		33		1,372		1,372		—			(464	)
Total		436	$	89,914	$	89,797	$	(117	)	$	(1,880	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

-26-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. Loans and leases and the allowance for credit losses, continued

			Recorded investment				Financial effects of modification
Six months ended June 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		39	$	6,876	$	6,804	$	(72	)	$	—
Other		2		48,660		48,857		197			—
Combination of concession types		3		1,832		1,322		(510	)		—
Real estate:
Commercial
Principal deferral		13		34,027		33,893		(134	)		—
Combination of concession types		2		582		581		(1	)		(56	)
Residential builder and developer
Principal deferral		15		18,853		18,062		(791	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		3		15,580		15,514		(66	)		(535	)
Other commercial construction
Principal deferral		2		364		363		(1	)		—
Residential
Principal deferral		15		1,782		1,965		183			—
Other		1		195		195		—			—
Combination of concession types		38		71,659		68,426		(3,233	)		(557	)
Residential Alt-A
Principal deferral		1		99		102		3			—
Combination of concession types		13		2,094		2,219		125			(388	)
Consumer:
Home equity lines and loans
Principal deferral		4		180		182		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		10		617		617		—			(97	)
Automobile
Principal deferral		238		3,215		3,215		—			—
Interest rate reduction		9		140		140		—			(15	)
Other		45		232		232		—			—
Combination of concession types		123		1,597		1,597		—			(129	)
Other
Principal deferral		20		230		230		—			—
Interest rate reduction		1		12		12		—			(2	)
Other		1		12		12		—			—
Combination of concession types		72		1,924		1,924		—			(501	)
Total		673	$	215,006	$	210,557	$	(4,449	)	$	(2,288	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

Troubled debt restructurings are considered to be impaired loans and for purposes of establishing the allowance for credit losses are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows. Impairment of troubled debt restructurings that have subsequently defaulted may also be measured based on the loan’s observable market price or the fair value of collateral if the loan is collateral-dependent. Charge-offs may also be recognized on troubled debt restructurings that have subsequently defaulted. Loans that were modified as troubled debt restructurings during the twelve months ended June 30, 2014 and 2013 and for which there was a subsequent payment default during the six-month periods ended June 30, 2014 and 2013, were not material.

-27-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

5. Borrowings

M&T had $834 million of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at June 30, 2014 which are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities (“Capital Securities”) and common securities (“Common Securities”). The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures. The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust’s securities possessing general voting powers. The Capital Securities represent preferred undivided interests in the assets of the corresponding trust.

Under the Federal Reserve Board’s current risk-based capital guidelines, the Capital Securities are includable in M&T’s Tier 1 capital. However, in July 2013, the Federal Reserve Board, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued a final rule to comprehensively revise the capital framework for the U.S. banking sector. Under that rule, trust preferred capital securities will be phased out from inclusion in Tier 1 capital such that in 2015 only 25% of then-outstanding securities will be included in Tier 1 capital and beginning in 2016 none of the securities will be included in Tier 1 capital.

Holders of the Capital Securities receive preferential cumulative cash distributions unless M&T exercises its right to extend the payment of interest on the Junior Subordinated Debentures as allowed by the terms of each such debenture, in which case payment of distributions on the respective Capital Securities will be deferred for comparable periods. During an extended interest period, M&T may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. In general, the agreements governing the Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by M&T of the payment of distributions on, the redemption of, and any liquidation distribution with respect to the Capital Securities. The obligations under such guarantee and the Capital Securities are subordinate and junior in right of payment to all senior indebtedness of M&T.

The Capital Securities will remain outstanding until the Junior Subordinated Debentures are repaid at maturity, are redeemed prior to maturity or are distributed in liquidation to the Trusts. The Capital Securities are mandatorily redeemable in whole, but not in part, upon repayment at the stated maturity dates (ranging from 2027 to 2033) of the Junior Subordinated Debentures or the earlier redemption of the Junior Subordinated Debentures in whole upon the occurrence of one or more events set forth in the indentures relating to the Capital Securities, and in whole or in part at any time after an optional redemption prior to contractual maturity contemporaneously with the optional redemption of the related Junior Subordinated Debentures in whole or in part, subject to possible regulatory approval.

On February 27, 2014, M&T redeemed all of the issued and outstanding 8.5% $350 million trust preferred securities issued by M&T Capital Trust IV and the related Junior Subordinated Debentures held by M&T Capital Trust IV.

Also included in long-term borrowings are agreements to repurchase securities of $1.4 billion at each of June 30, 2014 and December 31, 2013. The agreements are subject to legally enforceable master netting arrangements, however the Company has not offset any amounts related to these agreements in its consolidated financial statements. The Company posted collateral of $1.5 billion at June 30, 2014 and $1.6 billion at December 31, 2013.

-28-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

6. Shareholders’ equity

M&T is authorized to issue 1,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights.

Issued and outstanding preferred stock of M&T is presented below:

	Shares issued and outstanding		Carrying value June 30, 2014		Carrying value December 31, 2013
			(dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share		230,000	$	230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		151,500		151,500		151,500
Series D (b)
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000		500,000		500,000
Series E (c)
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E, $1,000 liquidation preference per share		350,000		350,000		—

(a) Dividends, if declared, were paid quarterly at a rate of 5% per year through November 14, 2013 and are paid at 6.375% thereafter. M&T has agreed to not redeem the preferred shares until on or after November 15, 2018. Warrants to purchase M&T common stock were issued in connection with the Series A and C preferred stock (Series A – 1,218,522 common shares at $73.86 per share; Series C – 407,542 common shares at $55.76 per share). In March 2013, the Series C warrants were exercised in a “cashless” exercise, resulting in the issuance of 186,589 common shares. During the six months ended June 30, 2014, 379,376 of the Series A warrants were exercised in “cashless” exercises, resulting in the issuance of 149,834 common shares. Remaining outstanding Series A warrants were 770,019 at June 30, 2014.

(b) Dividends, if declared, will be paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, will be paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate plus 361 basis points (hundredths of one percent). The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the

-29-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

6. Shareholders’ equity, continued

shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A and Series C warrants mentioned in (a) above, a warrant to purchase 95,383 shares of M&T common stock at $518.96 per share was outstanding at June 30, 2014 and December 31, 2013. The obligation under that warrant was assumed by M&T in an acquisition.

7. Pension plans and other postretirement benefits

The Company provides defined benefit pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended June 30
	2014			2013			2014			2013
	(in thousands)
Service cost	$	5,160			6,130			152			171
Interest cost on projected benefit obligation		17,331			14,939			714			670
Expected return on plan assets		(22,859	)		(21,802	)		—			—
Amortization of prior service cost		(1,626	)		(1,628	)		(329	)		(329	)
Amortization of net actuarial loss		3,897			10,138			—			80
Net periodic benefit cost	$	1,903			7,777			537			592
	Pension benefits						Other postretirement benefits
	Six months ended June 30
	2014			2013			2014			2013
	(in thousands)
Service cost	$	10,260			12,180			302			371
Interest cost on projected benefit obligation		34,581			30,065			1,389			1,345
Expected return on plan assets		(45,784	)		(43,677	)		—			—
Amortization of prior service cost		(3,276	)		(3,278	)		(679	)		(679	)
Amortization of net actuarial loss		7,247			20,538			—			180
Net periodic benefit cost	$	3,028			15,828			1,012			1,217

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $12,673,000 and $12,563,000 for the three months ended June 30, 2014 and 2013, respectively, and $28,405,000 and $28,318,000 for the six months ended June 30, 2014 and 2013, respectively.

-30-

NOTES TO FINANCIAL STATEMENTS, CONTINUED

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended June 30						Six months ended June 30
	2014			2013			2014			2013
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	284,336			348,466		$	513,353			622,579
Less: Preferred stock dividends (a)		(20,443	)		(13,362	)		(35,117	)		(26,725	)
Amortization of preferred stock discount (a)		—			(2,193	)		—			(4,340	)
Net income available to common equity		263,893			332,911			478,236			591,514
Less: Income attributable to unvested stock-based compensation awards		(3,213	)		(4,373	)		(5,832	)		(7,917	)
Net income available to common shareholders	$	260,680			328,538		$	472,404			583,597
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		132,473			129,964			132,139			129,708
Less: Unvested stock-based compensation awards		(1,617	)		(1,712	)		(1,603	)		(1,746	)
Weighted-average shares outstanding		130,856			128,252			130,536			127,962
Basic earnings per common share	$	1.99			2.56		$	3.62			4.56

(a) Including impact of not as yet declared cumulative dividends.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

8. Earnings per common share, continued

The computations of diluted earnings per common share follow:

	Three months ended June 30						Six months ended June 30
	2014			2013			2014			2013
	(in thousands, except per share)
Net income available to common equity	$	263,893			332,911		$	478,236			591,514
Less: Income attributable to unvested stock-based compensation awards		(3,198	)		(4,354	)		(5,807	)		(7,881	)
Net income available to common shareholders	$	260,695			328,557		$	472,429			583,633
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		132,473			129,964			132,139			129,708
Less: Unvested stock-based compensation awards		(1,617	)		(1,712	)		(1,603	)		(1,746	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		972			765			943			866
Adjusted weighted-average shares outstanding		131,828			129,017			131,479			128,828
Diluted earnings per common share	$	1.98			2.55		$	3.59			4.53

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 1.7 million and 4.5 million common shares during the three-month periods ended June 30, 2014 and 2013, respectively, and 2.4 million and 4.6 million common shares during the six-month periods ended June 30, 2014 and 2013, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income

The following tables display the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:

	Investment Securities				Defined benefit plans			Other			Total amount before tax			Income tax			Net
	With OTTI		All other
	(in thousands)
Balance—January 1, 2014	$	37,255		18,450		(161,617	)		115		$	(105,797	)		41,638		$	(64,159	)
Other comprehensive income before reclassifications: Unrealized holding gains, net		10,842		156,764		—			—			167,606			(65,774	)		101,832
Foreign currency translation adjustment		—		—		—			479			479			(166	)		313
Unrealized losses on cash flow hedges		—		—		—			(1,170	)		(1,170	)		459			(711	)
Total other comprehensive income before reclassifications		10,842		156,764		—			(691	)		166,915			(65,481	)		101,434
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		1		1,702		—			—			1,703	(a)		(669	)		1,034
Amortization of prior service credit		—		—		(3,955	)		—			(3,955	)(d)		1,552			(2,403	)
Amortization of actuarial losses		—		—		7,247			—			7,247	(d)		(2,845	)		4,402
Total reclassifications		1		1,702		3,292			—			4,995			(1,962	)		3,033
Total gain (loss) during the period		10,843		158,466		3,292			(691	)		171,910			(67,443	)		104,467
Balance—June 30, 2014	$	48,098		176,916		(158,325	)		(576	)	$	66,113			(25,805	)	$	40,308

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income, continued

	Investment Securities						Defined benefit plans			Other			Total amount before tax			Income tax			Net
	With OTTI			All other
	(in thousands)
Balance—January 1, 2013	$	(91,835	)		152,199			(455,590	)		(431	)	$	(395,657	)		155,393		$	(240,264	)
Other comprehensive income before reclassifications:
Unrealized holding gains(losses), net		55,473			(95,167	)		—			—			(39,694	)		15,557			(24,137	)
Foreign currency translation adjustment		—			—			—			(1,644	)		(1,644	)		598			(1,046	)
Total other comprehensive income before reclassifications		55,473			(95,167	)		—			(1,644	)		(41,338	)		16,155			(25,183	)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		109			2,262			—			—			2,371	(a)		(931	)		1,440
OTTI charges recognized in net income		9,800			—			—			—			9,800	(b)		(3,847	)		5,953
Losses (gains) realized in net income		41,217			(8,129	)		—			—			33,088	(c)		(12,987	)		20,101
Amortization of prior service credit		—			—			(3,957	)		—			(3,957	)(d)		1,553			(2,404	)
Amortization of actuarial losses		—			—			20,718			—			20,718	(d)		(8,132	)		12,586
Total reclassifications		51,126			(5,867	)		16,761			—			62,020			(24,344	)		37,676
Total gain (loss) during the period		106,599			(101,034	)		16,761			(1,644	)		20,682			(8,189	)		12,493
Balance—June 30, 2013	$	14,764			51,165			(438,829	)		(2,075	)	$	(374,975	)		147,204		$	(227,771	)

(a) Included in interest income

(b) Included in OTTI losses recognized in earnings

(c) Included in gain (loss) on bank investment securities

(d) Included in salaries and employee benefits expense

Accumulated other comprehensive income (loss), net consisted of the following:

	Investment securities				Defined benefit plans			Other			Total
	With OTTI		All other
Balance—December 31, 2013	$	22,632		11,294		(98,182	)		97		$	(64,159	)
Net gain (loss) during period		6,587		96,279		1,999			(398	)		104,467
Balance—June 30, 2014	$	29,219		107,573		(96,183	)		(301	)	$	40,308

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting and collateral provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts is not significant as of June 30, 2014.

The net effect of interest rate swap agreements was to increase net interest income by $12 million and $10 million for the three-month periods ended June 30, 2014 and 2013, respectively, and $23 million and $19 million for the six-month periods ended June 30, 2014 and 2013, respectively.

At June 30, 2014, interest rate swap agreements were used as fair value hedges for approximately $1.4 billion of outstanding fixed rate long-term borrowings. Also at June 30, 2014, the Company had entered into forward-starting interest rate swap agreements used to hedge the variability in the interest payments anticipated to be made upon the future issuance of $300 million of senior notes. These forward-starting interest rate swap agreements were terminated upon the issuance of such notes in July 2014. Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional amount		Average maturity		Weighted- average rate
					Fixed			Variable
	(in thousands)		(in years)
June 30, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		3.2		4.42	%		1.18	%
Cash flow hedges:
Interest payments on forecasted issuance of long-term borrowings (b)		300,000		5.1		1.82	%		0.23	%
	$	1,700,000		3.5		3.96	%		1.02	%
December 31, 2013
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		3.7		4.42	%		1.20	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

(b) Under the terms of this agreement, the Company was to receive settlement amounts at a variable rate and pay at a fixed rate.

The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in fair value of certain commitments to originate real estate loans for sale.

        Derivative financial instruments used for trading purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures. Interest rate

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

contracts entered into for trading purposes had notional values of $17.6 billion and $17.4 billion at June 30, 2014 and December 31, 2013, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading purposes aggregated $866 million and $1.4 billion at June 30, 2014 and December 31, 2013, respectively.

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset derivatives				Liability derivatives
	Fair value				Fair value
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	93,040		102,875	$	—		—
Commitments to sell real estate loans (a)		1,032		6,957		6,412		487
		94,072		109,832		6,412		487
Cash flow hedges:
Interest rate swap agreements (a)		—		—		1,170		—
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		22,215		7,616		192		3,675
Commitments to sell real estate loans (a)		1,431		6,120		6,883		230
Trading:
Interest rate contracts (b)		234,436		274,864		194,393		234,455
Foreign exchange and other option and futures contracts (b)		7,784		15,831		7,766		15,342
		265,866		304,431		209,234		253,702
Total derivatives	$	359,938		414,263	$	216,816		254,189

(a) Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

	Amount of unrealized gain (loss) recognized
	Three months ended June 30, 2014					Three months ended June 30, 2013
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(1,675	)		1,358	$	(20,138	)		18,853
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	1,384				$	2,228
Foreign exchange and other option and futures contracts (b)		(786	)				(1,225	)
Total	$	598				$	1,003

	Amount of unrealized gain (loss) recognized
	Six months ended June 30, 2014					Six months ended June 30, 2013
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(9,835	)		9,278	$	(29,011	)		27,753
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	1,082				$	3,197
Foreign exchange and other option and futures contracts (b)		(5,816	)				(1,608	)
Total	$	(4,734	)			$	1,589

(a) Reported as other revenues from operations.

(b) Reported as trading account and foreign exchange gains.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

In addition, the Company also has commitments to sell and commitments to originate residential and commercial real estate loans for sale that are considered derivatives. The Company designates certain of the commitments to sell real estate loans as fair value hedges of real estate loans held for sale. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. As a result of these activities, net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans were approximately $31 million and $23 million at June 30, 2014 and December 31, 2013, respectively. Changes in unrealized gains and losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied.

The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions.

The aggregate fair value of derivative financial instruments in a liability position, which are subject to enforceable master netting arrangements, was $177 million and $194 million at June 30, 2014 and December 31, 2013, respectively. After consideration of such netting arrangements, the net liability positions with counterparties aggregated $107 million at each of June 30, 2014 and December 31, 2013. The Company was required to post collateral relating to those positions of $92 million and $95 million at June 30, 2014 and December 31, 2013, respectively. Certain of the Company’s derivative financial instruments contain provisions that require the Company to maintain specific credit ratings from credit rating agencies to avoid higher collateral posting requirements. If the Company’s debt rating were to fall below specified ratings, the counterparties of the derivative financial instruments could demand immediate incremental collateralization on those instruments in a net liability position. The aggregate fair value of all derivative financial instruments with such credit risk-related contingent features in a net liability position on June 30, 2014 was $28 million for which the Company had posted collateral of $18 million in the normal course of business. If the credit risk-related contingent features had been triggered on June 30, 2014, the maximum amount of additional collateral the Company would have been required to post to counterparties was $10 million.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $133 million and $183 million at June 30, 2014 and December 31, 2013, respectively. After consideration of such netting arrangements, the net asset positions with counterparties aggregated $63 million and $95 million at June 30, 2014 and December 31, 2013, respectively. Counterparties posted collateral relating to those positions of $63 million and $93 million at June 30, 2014 and December 31, 2013, respectively. Trading account interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and often contain collateral provisions.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

11. Variable interest entities and asset securitizations

In the second quarter of 2013, the Company securitized approximately $923 million of one-to-four family residential mortgage loans in guaranteed mortgage securitizations with Ginnie Mae. Approximately $296 million of such loans were formerly held in the Company’s loan portfolio, whereas the remaining $627 million of the loans were newly originated. The Company retained $917 million of the resulting securities and recognized gains of $7 million relating to loans previously held for investment, which have been recorded in other revenues from operations, and gains of $10 million on newly originated loans, which have been reflected in mortgage banking revenues. The Company expects no material credit-related losses on the retained securities as a result of the guarantees by Ginnie Mae. At June 30, 2013 the Company had $1.0 billion of loans in its loan portfolio guaranteed by the Federal Housing Administration that the Company securitized with Ginnie Mae in the third quarter of 2013. The Company retained the substantial majority of the resulting securities in its investment portfolio. In similar transactions for the six months ended June 30, 2014, the Company securitized $75 million of one-to-four family residential real estate loans that had been originated for sale in guaranteed mortgage securitizations with Ginnie Mae and retained the resulting securities in its investment portfolio. Pre-tax gains on such transactions were not material.

In accordance with GAAP, the Company determined that it was the primary beneficiary of a residential mortgage loan securitization trust considering its role as servicer and its retained subordinated interests in the trust. As a result, the Company has included the one-to-four family residential mortgage loans that were included in the trust in its consolidated financial statements. At June 30, 2014 and December 31, 2013, the carrying values of the loans in the securitization trust were $110 million and $121 million, respectively. The outstanding principal amount of mortgage-backed securities issued by the qualified special purpose trust that was held by parties unrelated to M&T at each of June 30, 2014 and December 31, 2013 was $18 million. Because the transaction was non-recourse, the Company’s maximum exposure to loss as a result of its association with the trust at June 30, 2014 is limited to realizing the carrying value of the loans less the amount of the mortgage-backed securities held by third parties.

As described in note 5, M&T has issued junior subordinated debentures payable to various trusts that have issued Capital Securities. M&T owns the common securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At June 30, 2014 and December 31, 2013, the Company included the junior subordinated debentures as “long-term borrowings” in its consolidated balance sheet. The Company has recognized $34 million in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 5.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.3 billion at June 30, 2014 and December 31, 2013, respectively. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $236 million, including $53 million of unfunded commitments, at June 30, 2014 and $236 million, including $45 million of unfunded commitments,

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

11. Variable interest entities and asset securitizations, continued

at December 31, 2013. The Company has not provided financial or other support to the partnerships that was not contractually required. Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities. The Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, in accordance with the accounting provisions for variable interest entities, the partnership entities are not included in the Company’s consolidated financial statements.

12. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections at June 30, 2014.

Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.

• Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.

• Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

• Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. The following is a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

Trading account assets and liabilities

Trading account assets and liabilities consist primarily of interest rate swap agreements and foreign exchange contracts with customers who require such services and offsetting positions with third parties to minimize the Company’s risk with respect to such transactions. The Company generally determines the fair value of its derivative trading account assets and liabilities using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. Mutual funds held in connection with deferred compensation arrangements have been classified as Level 1 valuations. Valuations of investments in municipal and other bonds can generally be obtained through reference to quoted prices in less active markets for the same or similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

Investment securities available for sale

The majority of the Company’s available-for-sale investment securities have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2. Certain investments in mutual funds and equity securities are actively traded and, therefore, have been classified as Level 1 valuations.

The Company sold substantially all of its privately issued mortgage-backed securities classified as available for sale during the second quarter of 2013. In prior periods, the Company generally used model-based techniques to value such securities because the Company was significantly restricted in the level of market observable assumptions that could be relied upon. Specifically, market assumptions regarding credit adjusted cash flows and liquidity influences on discount rates were difficult to observe at the individual bond level. Because of the inactivity in the markets and the lack of observable valuation inputs, the Company had classified the valuation of privately issued mortgage-backed securities as Level 3.

Included in collateralized debt obligations are securities backed by trust preferred securities issued by financial institutions and other entities. The Company could not obtain pricing indications for many of these securities from its two primary independent pricing sources. The Company, therefore, performed internal modeling to estimate the cash flows and fair value of its portfolio of securities backed by trust preferred securities at June 30, 2014 and December 31, 2013. The modeling techniques included estimating cash flows using bond-specific assumptions about future collateral defaults and related loss severities. The resulting cash flows were then discounted by reference to market yields observed in the single-name trust preferred securities market. In determining a market yield, applicable to the estimated cash flows, a margin over LIBOR, ranging from 4% to 11%, with a weighted-average of 8%, was used. Significant unobservable inputs used in the determination of estimated fair value of collateralized debt obligations are included in the accompanying table of significant unobservable inputs to Level 3 measurements. At June 30, 2014, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities were $33 million and $56 million, respectively, and at December 31, 2013 were $42 million and $63 million, respectively. Privately issued mortgage-backed securities and securities backed by trust preferred securities issued by financial institutions and other entities constituted all of the available-for-sale investment securities classified as Level 3 valuations.

The Company ensures an appropriate control framework is in place over the valuation processes and techniques used for significant Level 3 fair value measurements. Internal pricing models used for significant valuation measurements have generally been subjected to validation procedures including testing of mathematical constructs, review of valuation methodology and significant assumptions used.

Real estate loans held for sale

The Company utilizes commitments to sell real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. The carrying value of hedged real estate loans held for sale includes changes in estimated fair value during the hedge period. Typically, the Company attempts to hedge real estate loans originated for sale from the date of close through the sale date. The fair value of hedged real estate loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans with similar characteristics and, accordingly, such loans have been classified as a Level 2 valuation.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

Commitments to originate real estate loans for sale and commitments to sell real estate loans

The Company enters into various commitments to originate real estate loans for sale and commitments to sell real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value on the consolidated balance sheet. The estimated fair values of such commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans to certain government-sponsored entities and other parties. The fair valuations of commitments to sell real estate loans generally result in a Level 2 classification. The estimated fair value of commitments to originate real estate loans for sale are adjusted to reflect the Company’s anticipated commitment expirations. The estimated commitment expirations are considered significant unobservable inputs contributing to the Level 3 classification of commitments to originate real estate loans for sale. Significant unobservable inputs used in the determination of estimated fair value of commitments to originate real estate loans for sale are included in the accompanying table of significant unobservable inputs to Level 3 measurements.

Interest rate swap agreements used for interest rate risk management

The Company utilizes interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of earning assets and interest-bearing liabilities. The Company generally determines the fair value of its interest rate swap agreements using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. The Company has considered counterparty credit risk in the valuation of its interest rate swap agreement assets and has considered its own credit risk in the valuation of its interest rate swap agreement liabilities.

The following tables present assets and liabilities at June 30, 2014 and December 31, 2013 measured at estimated fair value on a recurring basis:

	Fair value measurements at June 30, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	313,325		50,813		262,512		—
Investment securities available for sale:
U.S. Treasury and federal agencies		42,921		—		42,921		—
Obligations of states and political subdivisions		10,242		—		10,242		—
Mortgage-backed securities:
Government issued or guaranteed		7,617,627		—		7,617,627		—
Privately issued		119		—		—		119
Collateralized debt obligations		56,200		—		—		56,200
Other debt securities		124,763		—		124,763		—
Equity securities		156,907		94,974		61,933		—
		8,008,779		94,974		7,857,486		56,319
Real estate loans held for sale		623,380		—		623,380		—
Other assets (b)		117,718		—		95,503		22,215
Total assets	$	9,063,202		145,787		8,838,881		78,534
Trading account liabilities	$	202,159		—		202,159		—
Other liabilities (b)		14,657		—		14,465		192
Total liabilities	$	216,816		—		216,624		192

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

	Fair value measurements at December 31, 2013		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	376,131		51,386		324,745		—
Investment securities available for sale:
U.S. Treasury and federal agencies		37,776		—		37,776		—
Obligations of states and political subdivisions		10,811		—		10,811		—
Mortgage-backed securities:
Government issued or guaranteed		4,165,086		—		4,165,086		—
Privately issued		1,850		—		—		1,850
Collateralized debt obligations		63,083		—		—		63,083
Other debt securities		120,085		—		120,085		—
Equity securities		133,095		82,450		50,645		—
		4,531,786		82,450		4,384,403		64,933
Real estate loans held for sale		468,650		—		468,650		—
Other assets (b)		123,568		—		115,952		7,616
Total assets	$	5,500,135		133,836		5,293,750		72,549
Trading account liabilities	$	249,797		—		249,797		—
Other liabilities (b)		4,392		—		717		3,675
Total liabilities	$	254,189		—		250,514		3,675

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months and six months ended June 30, 2014 and 2013.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—March 31, 2014	$	696		$	61,768		$	12,589
Total gains realized/unrealized:
Included in earnings		—			—			31,517	(b)
Included in other comprehensive income		205	(e)		4,486	(e)		—
Sales		—			—			—
Settlements		(782	)		(10,054	)		—
Transfers in and/or out of Level 3 (c)		—			—			(22,083	)(d)
Balance—June 30, 2014	$	119		$	56,200		$	22,023
Changes in unrealized gains included in earnings related to assets still held at June 30, 2014	$	—		$	—		$	20,215	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—March 31, 2013	$	993,247		$	61,718		$	36,119
Total gains (losses) realized/unrealized:
Included in earnings		(46,302	)(a)		—			15,500	(b)
Included in other comprehensive income		90,203	(e)		(1,277	)(e)		—
Sales		(978,608	)		—			—
Settlements		(53,268	)		(525	)		—
Transfers in and/or out of Level 3 (c)		—			—			(44,211	)(d)
Balance—June 30, 2013	$	5,272		$	59,916		$	7,408
Changes in unrealized gains included in earnings related to assets still held at June 30, 2013	$	—		$	—		$	4,123	(b)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains realized/unrealized:
Included in earnings		—			—			53,900	(b)
Included in other comprehensive income		272	(e)		9,132	(e)		—
Settlements		(2,003	)		(16,015	)		—
Transfers in and/or out of Level 3 (c)		—			—			(35,818	)(d)
Balance—June 30, 2014	$	119		$	56,200		$	22,023
Changes in unrealized gains included in earnings related to assets still held at June 30, 2014	$	—		$	—		$	24,099	(b)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—January 1, 2013	$	1,023,886		$	61,869		$	47,859
Total gains (losses) realized/unrealized:
Included in earnings		(56,102	)(a)		—			58,812	(b)
Included in other comprehensive income		116,584	(e)		(537	)(e)		—
Sales		(978,608	)		—			—
Settlements		(100,488	)		(1,416	)		—
Transfers in and/or out of Level 3 (c)		—			—			(99,263	)(d)
Balance—June 30, 2013	$	5,272		$	59,916		$	7,408
Changes in unrealized gains included in earnings related to assets still held at June 30, 2013	$	—		$	—		$	5,132	(b)

(a) Reported as an OTTI loss or as gain (loss) on bank investment securities in the consolidated statement of income.

(b) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(c) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(d) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(e) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow.

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2, unless significant adjustments have been made to the valuation that are not readily observable by market participants. Non-real estate collateral supporting commercial loans generally consists of business assets such as receivables, inventory and equipment. Fair value estimations are typically determined by discounting recorded values of those assets to reflect estimated net realizable value considering specific borrower facts and circumstances and the experience of credit personnel in their dealings with similar borrower collateral liquidations. Such discounts were generally in the range of 5% to 80% at June 30, 2014. As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3. Loans subject to nonrecurring fair value measurement were $212 million at June 30, 2014 ($129 million and $83 million of which were classified as Level 2 and Level 3, respectively), $222 million at December 31, 2013 ($173 million and $49 million of which were classified as Level 2 and Level 3, respectively) and $254 million at June 30, 2013 ($167 million and $87 million of which were classified as Level 2 and Level 3, respectively). Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on June 30, 2014 were decreases of $32 million and $47 million for the three- and six-month periods ended June 30, 2014, respectively. Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on June 30, 2013 were decreases of $34 million and $69 million for the three- and six-month periods ended June 30, 2013, respectively.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans are primarily comprised of commercial and residential real property and are generally measured at the lower of cost or fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2. Assets taken in foreclosure of defaulted loans held by the company on June 30, 2014 subject to nonrecurring fair value measurement were $8 million and $15 million for the three-month and six-month periods ended June 30, 2014, respectively. Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement were $15 million at each of June 30, 2014 and 2013. Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month and six-month periods ended June 30, 2014 and 2013.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

Significant unobservable inputs to Level 3 measurements

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at June 30, 2014 and December 31, 2013:

	Fair value at June 30, 2014		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	119	Two independent pricing quotes	—		—
Collateralized debt obligations		56,200	Discounted cash flow	Probability of default		15%-56% (37%)
				Loss severity		100%
Net other assets (liabilities)(a)		22,023	Discounted cash flow	Commitment expirations		0%-97% (18%)
	Fair value at December 31, 2013		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	1,850	Two independent pricing quotes	—		—
Collateralized debt obligations		63,083	Discounted cash flow	Probability of default		17%-55% (39%)
				Loss severity		100%
Net other assets (liabilities)(a)		3,941	Discounted cash flow	Commitment expirations		0%-90% (20%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Sensitivity of fair value measurements to changes in unobservable inputs

An increase (decrease) in the probability of default and loss severity for mortgage-backed securities and collateralized debt securities would generally result in a lower (higher) fair value measurement.

An increase (decrease) in the estimate of expirations for commitments to originate real-estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing.

Disclosures of fair value of financial instruments

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. Additional information about the assumptions and calculations utilized follows.

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	June 30, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,917,436		$	1,917,436		$	1,835,382	$	82,054		$	—
Interest-bearing deposits at banks		3,032,530			3,032,530			—		3,032,530			—
Trading account assets		313,325			313,325			50,813		262,512			—
Investment securities		12,120,195			12,125,379			94,974		11,814,650			215,755
Loans and leases:
Commercial loans and leases		19,105,892			18,753,794			—		—			18,753,794
Commercial real estate loans		26,374,274			26,311,756			—		204,669			26,107,087
Residential real estate loans		8,656,766			8,712,237			—		5,436,622			3,275,615
Consumer loans		10,610,761			10,524,381			—		—			10,524,381
Allowance for credit losses		(917,666	)		—			—		—			—
Loans and leases, net		63,830,027			64,302,168			—		5,641,291			58,660,877
Accrued interest receivable		223,497			223,497			—		223,497			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,088,763	)	$	(26,088,763	)	$	—	$	(26,088,763	)	$	—
Savings deposits and NOW accounts		(40,216,607	)		(40,216,607	)		—		(40,216,607	)		—
Time deposits		(3,285,995	)		(3,306,300	)		—		(3,306,300	)		—
Deposits at Cayman Islands office		(237,890	)		(237,890	)		—		(237,890	)		—
Short-term borrowings		(161,631	)		(161,631	)		—		(161,631	)		—
Long-term borrowings		(7,391,931	)		(7,549,272	)		—		(7,549,272	)		—
Accrued interest payable		(54,394	)		(54,394	)		—		(54,394	)		—
Trading account liabilities		(202,159	)		(202,159	)		—		(202,159	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	22,023		$	22,023		$	—	$	—		$	22,023
Commitments to sell real estate loans		(10,832	)		(10,832	)		—		(10,832	)		—
Other credit-related commitments		(117,940	)		(117,940	)		—		—			(117,940	)
Interest rate swap agreements used for interest rate risk management		91,870			91,870			—		91,870			—

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

	December 31, 2013
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
							(in thousands)
Financial assets:
Cash and cash equivalents	$	1,672,934		$	1,672,934		$	1,596,877	$	76,057		$	—
Interest-bearing deposits at banks		1,651,138			1,651,138			—		1,651,138			—
Trading account assets		376,131			376,131			51,386		324,745			—
Investment securities		8,796,497			8,690,494			82,450		8,384,106			223,938
Loans and leases:
Commercial loans and leases		18,705,216			18,457,288			—		—			18,457,288
Commercial real estate loans		26,148,208			26,018,195			—		67,505			25,950,690
Residential real estate loans		8,928,221			8,867,872			—		5,432,207			3,435,665
Consumer loans		10,291,514			10,201,087			—		—			10,201,087
Allowance for credit losses		(916,676	)		—			—		—			—
Loans and leases, net		63,156,483			63,544,442			—		5,499,712			58,044,730
Accrued interest receivable		222,558			222,558			—		222,558			—
Financial liabilities:
Noninterest-bearing deposits	$	(24,661,007	)	$	(24,661,007	)	$	—	$	(24,661,007	)	$	—
Savings deposits and NOW accounts		(38,611,021	)		(38,611,021	)		—		(38,611,021	)		—
Time deposits		(3,523,838	)		(3,542,789	)		—		(3,542,789	)		—
Deposits at Cayman Islands office		(322,746	)		(322,746	)		—		(322,746	)		—
Short-term borrowings		(260,455	)		(260,455	)		—		(260,455	)		—
Long-term borrowings		(5,108,870	)		(5,244,902	)		—		(5,244,902	)		—
Accrued interest payable		(43,419	)		(43,419	)		—		(43,419	)		—
Trading account liabilities		(249,797	)		(249,797	)		—		(249,797	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	3,941		$	3,941		$	—	$	—		$	3,941
Commitments to sell real estate loans		12,360			12,360			—		12,360			—
Other credit-related commitments		(118,886	)		(118,886	)		—		—			(118,886	)
Interest rate swap agreements used for interest rate risk management		102,875			102,875			—		102,875			—

The following assumptions, methods and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

Cash and cash equivalents, interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable

Due to the nature of cash and cash equivalents and the near maturity of interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable, the Company estimated that the carrying amount of such instruments approximated estimated fair value.

Investment securities

Estimated fair values of investments in readily marketable securities were generally based on quoted market prices. Investment securities that were not readily marketable were assigned amounts based on estimates provided by outside parties or modeling techniques that relied upon discounted calculations of projected cash flows or, in the case of other investment securities, which include capital stock of the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York, at an amount equal to the carrying amount.

Loans and leases

In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end. A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

Projected loan cash flows were adjusted for estimated credit losses. However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans and leases would seek.

Deposits

Pursuant to GAAP, the estimated fair value ascribed to noninterest-bearing deposits, savings deposits and NOW accounts must be established at carrying value because of the customers’ ability to withdraw funds immediately. Time deposit accounts are required to be revalued based upon prevailing market interest rates for similar maturity instruments. As a result, amounts assigned to time deposits were based on discounted cash flow calculations using prevailing market interest rates based on the Company’s pricing at the respective date for deposits with comparable remaining terms to maturity.

The Company believes that deposit accounts have a value greater than that prescribed by GAAP. The Company feels, however, that the value associated with these deposits is greatly influenced by characteristics of the buyer, such as the ability to reduce the costs of servicing the deposits and deposit attrition which often occurs following an acquisition.

Long-term borrowings

The amounts assigned to long-term borrowings were based on quoted market prices, when available, or were based on discounted cash flow calculations using prevailing market interest rates for borrowings of similar terms and credit risk.

Other commitments and contingencies

As described in note 13, in the normal course of business, various commitments and contingent liabilities are outstanding, such as loan commitments, credit guarantees and letters of credit. The Company’s pricing of such financial instruments is based largely on credit quality and relationship, probability of funding and other requirements. Loan commitments often have fixed expiration dates and contain termination and other clauses which provide for relief from funding in the event of significant deterioration in the credit quality of the customer. The rates and terms of the Company’s loan commitments, credit guarantees and letters of credit are competitive with other financial institutions operating in markets served by the Company. The Company believes that the carrying amounts, which are included in other liabilities, are reasonable estimates of the fair value of these financial instruments.

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities.

Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

13. Commitments and contingencies

In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.

	June 30,		December 31,
	2014		2013
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,246,501		6,218,823
Commercial real estate loans to be sold		250,725		62,386
Other commercial real estate and construction		4,482,869		3,919,545
Residential real estate loans to be sold		596,865		469,869
Other residential real estate		412,964		384,617
Commercial and other		10,560,928		10,419,545
Standby letters of credit		3,581,160		3,600,528
Commercial letters of credit		43,653		53,284
Financial guarantees and indemnification contracts		2,701,575		2,457,633
Commitments to sell real estate loans		1,254,309		854,656

Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness.

Financial guarantees and indemnification contracts are oftentimes similar to standby letters of credit and include mandatory purchase agreements issued to ensure that customer obligations are fulfilled, recourse obligations associated with sold loans, and other guarantees of customer performance or compliance with designated rules and regulations. Included in financial guarantees and indemnification contracts are loan principal amounts sold with recourse in conjunction with the Company’s involvement in the Fannie Mae Delegated Underwriting and Servicing program. The Company’s maximum credit risk for recourse associated with loans sold under this program totaled approximately $2.3 billion at June 30, 2014 and December 31, 2013.

Since many loan commitments, standby letters of credit, and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

13. Commitments and contingencies, continued

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are considered derivatives and along with commitments to originate real estate loans to be held for sale are generally recorded in the consolidated balance sheet at estimated fair value.

The Company has commitments under long-term operating leases and an agreement with the Baltimore Ravens of the National Football League whereby the Company obtained the naming rights to a football stadium in Baltimore, Maryland through 2027.

The Company reinsures credit life and accident and health insurance purchased by consumer loan customers. The Company also enters into reinsurance contracts with third party insurance companies who insure against the risk of a mortgage borrower’s payment default in connection with certain mortgage loans originated by the Company. When providing reinsurance coverage, the Company receives a premium in exchange for accepting a portion of the insurer’s risk of loss. The outstanding loan principal balances reinsured by the Company were approximately $12 million at June 30, 2014. Management believes that any reinsurance losses that may be payable by the Company will not be material to the Company’s consolidated financial position.

The Company is contractually obligated to repurchase previously sold residential real estate loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. At June 30, 2014, management believes that any further liability arising out of the Company’s obligation to loan purchasers is not material to the Company’s consolidated financial position.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $40 million. Although the Company does not believe that the outcome of pending litigations will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information

Reportable segments have been determined based upon the Company’s internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 2013. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. As also described in note 22 to the Company’s 2013 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Company’s reportable segments, but are included in the “All Other” category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment.

Information about the Company’s segments is presented in the following table:

	Three months ended June 30
	2014								2013
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	104,688		1,220			27,760			106,486			1,319			30,562
Commercial Banking		252,496		1,356			105,358			252,907			1,315			87,220
Commercial Real Estate		164,912		525			77,526			187,773			554			89,868
Discretionary Portfolio		29,912		(5,282	)		14,980			(14,109	)		(10,015	)		(8,036	)
Residential Mortgage Banking		110,751		11,772			27,712			111,764			21,589			34,143
Retail Banking		268,494		3,897			32,034			292,837			3,598			51,500
All Other		194,273		(13,488	)		(1,034	)		248,618			(18,360	)		63,209
Total	$	1,125,526		—			284,336			1,186,276			—			348,466

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

	Six months ended June 30
	2014								2013
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	206,987		2,277			56,358		$	211,904			2,513			63,123
Commercial Banking		501,082		2,553			205,123			502,757			2,665			194,607
Commercial Real Estate		323,272		873			152,087			353,066			2,106			166,376
Discretionary Portfolio		54,569		(10,321	)		26,259			(2,068	)		(18,616	)		(6,190	)
Residential Mortgage Banking		205,339		21,520			47,123			231,663			40,287			68,504
Retail Banking		530,382		7,402			61,745			584,022			6,855			103,850
All Other		380,435		(24,304	)		(35,342	)		393,864			(35,810	)		32,309
Total	$	2,202,066		—			513,353		$	2,275,208			—			622,579

	Average total assets
	Six months ended June 30				Year ended December 31
	2014		2013		2013
	(in millions)
Business Banking	$	5,286		5,010		5,080
Commercial Banking		22,742		21,446		21,655
Commercial Real Estate		16,878		17,122		17,150
Discretionary Portfolio		19,417		16,278		16,480
Residential Mortgage Banking		3,226		2,752		2,858
Retail Banking		10,229		11,357		10,997
All Other		10,500		8,672		9,442
Total	$	88,278		82,637		83,662

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $5,849,000 and $6,217,000 for the three-month periods ended June 30, 2014 and 2013, respectively, and $11,794,000 and $12,667,000 for the six-month periods ended June 30, 2014 and 2013, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

15. 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. The carrying value of that investment was $56 million at June 30, 2014.

Bayview Financial Holdings, L.P. (together with its affiliates, “Bayview Financial”), a privately-held specialty mortgage 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 $5.2 billion and $5.5 billion at June 30, 2014 and December 31, 2013, respectively. Revenues from those servicing rights were $7 million and $8 million during the three months ended June 30, 2014 and 2013, respectively, and $14 million and $16 million for the six months ended June 30, 2014 and June 30, 2013, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances totaling $44.6 billion and $45.6 billion at June 30, 2014 and December 31, 2013, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $27 million and $2 million for the three-month periods ended June 30, 2014 and 2013, respectively, and $53 million and $4 million for the six-month periods ended June 30, 2014 and 2013, respectively. In addition, the Company held $210 million and $220 million of mortgage-backed securities in its held-to-maturity portfolio at June 30, 2014 and December 31, 2013, respectively, that were securitized by Bayview Financial.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

Net income for M&T Bank Corporation (“M&T”) in the second quarter of 2014 was $284 million or $1.98 of diluted earnings per common share, compared with $348 million or $2.55 of diluted earnings per common share in the year-earlier quarter. During the initial quarter of 2014, net income aggregated $229 million or $1.61 of diluted earnings per common share. Basic earnings per common share were $1.99 in the recent quarter, compared with $2.56 in the second quarter of 2013 and $1.63 in the first 2014 quarter. For the first half of 2014, net income totaled $513 million or $3.59 of diluted earnings per common share, compared with $623 million or $4.53 of diluted earnings per common share in the first six months of 2013. Basic earnings per common share for the six-month periods ended June 30, 2014 and 2013 were $3.62 and $4.56, respectively.

The annualized rate of return on average total assets for M&T and its consolidated subsidiaries (“the Company”) in the recent quarter was 1.27%, compared with 1.68% in the year-earlier quarter and 1.07% in the first quarter of 2014. The annualized rate of return on average common shareholders’ equity was 9.79% in the second quarter of 2014, compared with 13.78% and 8.22% in the three-month periods ended June 30, 2013 and March 31, 2014, respectively. During the six-month period ended June 30, 2014, the annualized rates of return on average assets and average common shareholders’ equity were 1.17% and 9.02%, respectively, compared with 1.52% and 12.47%, respectively, in the first half of 2013.

The recent quarter’s results reflect two noteworthy, but largely offsetting, items. The resolution with tax authorities of previously uncertain tax positions required M&T to reduce its accrual for income taxes and increase net income by $8 million, while an increase in M&T’s accrual for litigation-related costs of $12 million reduced net income by $7 million after applicable tax effect. Both accrual items were associated with pre-acquisition activities of M&T’s Wilmington Trust entities.

Reflected in the results for the second quarter of 2013 were certain noteworthy items. The Company sold the majority of its privately issued mortgage-backed securities that had been held in the available-for-sale investment securities portfolio for an after-tax loss of $28 million ($46 million pre-tax), or $.22 per diluted common share. In addition, the Company’s holdings of Visa and MasterCard shares were sold for an after-tax gain of $62 million ($103 million pre-tax), or $.48 per diluted common share. Finally, during that quarter the Company reversed an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust that expired, resulting in a $26 million reduction of “other expense – other costs of operations” having an after-tax impact of $15 million, or $.12 of diluted earnings per common share. In the aggregate, those noteworthy items contributed net income of $49 million, or $.38 per diluted common share, in 2013’s second quarter.

On August 27, 2012, M&T announced that it had entered into a definitive agreement with Hudson City Bancorp, Inc. (“Hudson City”), headquartered in Paramus, New Jersey, under which Hudson City would be acquired by M&T. Pursuant to the terms of the agreement, Hudson City common shareholders will receive consideration for each common share of Hudson City in an amount valued at .08403 of an M&T share in the form of either M&T common stock or cash, based on the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of 60% common stock of M&T and 40% cash). The estimated purchase price considering the closing price of M&T’s common stock of $124.05 on June 30, 2014 was $5.4 billion.

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As of June 30, 2014, Hudson City reported $37.7 billion of assets, including $23.3 billion of loans (predominantly residential real estate loans) and $8.2 billion of investment securities, and $32.9 billion of liabilities, including $20.5 billion of deposits. The merger has received the approval of the common shareholders of M&T and Hudson City. However, the merger is subject to a number of conditions, including regulatory approvals.

On June 17, 2013, M&T and M&T Bank, the principal Bank subsidiary of M&T, entered into a written agreement with the Federal Reserve Bank of New York. Under the terms of the agreement, M&T and M&T Bank are required to submit to the Federal Reserve Bank of New York a revised compliance risk management program designed to ensure compliance with the Bank Secrecy Act and anti-money-laundering laws and regulations (“BSA/AML”) and to take certain other steps to enhance their compliance practices. The Company commenced a major initiative, including the hiring of outside consulting firms, intended to fully address those regulator concerns. M&T and M&T Bank continue to make progress towards completing this initiative. In view of the timeframe required to implement this initiative, demonstrate its efficacy to the satisfaction of the regulators and otherwise meet any other regulatory requirements that may be imposed in connection with these matters, M&T and Hudson City extended the date after which either party may elect to terminate the merger agreement if the merger has not yet been completed to December 31, 2014. Nevertheless, M&T’s pending acquisition of Hudson City remains subject to regulatory approval, including approval by the Federal Reserve, and certain other closing conditions and, as a result, there can be no assurances that the merger will be completed by that date.

Recent Legislative and Regulatory Developments

As discussed in M&T’s Form 10-K for the year ended December 31, 2013, the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) that was signed into law on July 21, 2010 has and will continue to significantly change the bank regulatory structure and affect the lending, deposit, investment, trading and operating activities of financial institutions and their holding companies, and the system of regulatory oversight of the Company. The Dodd-Frank Act requires various federal agencies to adopt a broad range of new implementing rules and regulations, and to prepare numerous studies and reports for Congress, many of which are not yet completed or implemented. The Dodd-Frank Act could have a material adverse impact on the financial services industry as a whole, as well as on M&T’s business, results of operations, financial condition and liquidity.

A discussion of the provisions of the Dodd-Frank Act is included in Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2013.

On July 31, 2013, the U.S. District Court for the District of Columbia issued an order granting summary judgment to the plaintiffs in a case challenging certain provisions of the Federal Reserve Board’s rule concerning electronic debit card transaction fees and network exclusivity arrangements (the “Current Rule”) that were adopted to implement Section 1075 of the Dodd-Frank Act — the so-called “Durbin Amendment.” The Court held that, in adopting the Current Rule, the Federal Reserve Board violated the Durbin Amendment’s provisions concerning which costs are allowed to be taken into account for purposes of setting fees that are “reasonable and proportional to the costs incurred by the issuer” and therefore the Current Rule’s maximum permissible fees were too high. In addition, the Court held that the Current Rule’s network non-exclusivity provisions concerning unaffiliated payment networks for debit cards also violated the Durbin Amendment. The Court vacated the Current Rule. The Court’s judgment was stayed in September 2013 pending appeal by the Federal Reserve Board. In March 2014, a panel of the

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United States Court of Appeals for the District of Columbia overturned the U.S. District Court’s ruling almost in its entirety, remanding to the Federal Reserve Board for further consideration or explanation of the issue of its treatment of transactions-monitoring costs.

In July 2013, the Federal Reserve Board, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved final rules (the “New Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The New Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The New Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and their depository institution subsidiaries, including M&T and M&T Bank, as compared to the current U.S. general risk-based capital rules.

The New Capital Rules preclude certain hybrid securities, such as trust preferred securities, from inclusion in bank holding companies’ Tier 1 capital, subject to phase-out in the case of bank holding companies, such as M&T, that had $15 billion or more in total consolidated assets as of December 31, 2009. As a result, beginning in 2015 25% of M&T’s trust preferred securities will be includable in Tier 1 capital, and in 2016 and thereafter, none of M&T’s trust preferred securities will be includable in Tier 1 capital. Trust preferred securities no longer included in M&T’s Tier 1 capital may nonetheless be included as a component of Tier 2 capital on a permanent basis without phase-out and irrespective of whether such securities otherwise meet the revised definition of Tier 2 capital set forth in the New Capital Rules. In the first quarter of 2014, M&T redeemed $350 million of 8.50% junior subordinated debentures associated with the trust preferred capital securities of M&T Capital Trust IV and issued a like amount of 6.45% preferred stock that qualifies as Tier 1 regulatory capital. A detailed discussion of the New Capital Rules is included in Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2013 under the heading “Capital Requirements.”

Management believes that the Company will be able to comply with the revised capital adequacy requirements upon their implementation. More specifically, management estimates that the Company’s ratio of Common Equity Tier 1 (“CET1”) to risk-weighted assets under the New Capital Rules (and as defined therein) on a fully phased-in basis was approximately 9.42% as of June 30, 2014, reflecting a good faith estimate of the computation of CET1 and the Company’s risk-weighted assets under the methodologies set forth in the New Capital Rules.

On December 10, 2013, the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Securities and Exchange Commission adopted the final version of the Volcker Rule, which was mandated under Dodd-Frank. The Volcker Rule is intended to reduce risks posed to banking entities from proprietary trading activities and investments in or relationships with covered funds. Banking entities are generally prohibited from engaging in proprietary trading. The Company does not believe that it engages in any significant amount of “proprietary trading” as defined in the Volcker Rule and that any impact would be minimal. In addition, a review of the Company’s investments was undertaken to determine if any meet the Volcker Rule’s definition of “covered funds.” Based on that review, the Company believes that any impact related to investments considered to be covered funds would not have a significant effect on the Company’s financial condition or its results of operations.

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Nevertheless, the Company may be required to divest certain investments subject to the Volcker Rule by mid-2015.

On October 24, 2013, the Federal Reserve Board and other banking regulators issued an interagency proposal for the U.S. version of the Basel Committee’s Liquidity Coverage Ratio (“LCR”). The LCR requires a banking organization to maintain a minimum amount of liquid assets to withstand a standardized supervisory liquidity stress scenario. The proposed effective date is January 1, 2015, subject to a two-year phase-in period. The period for commenting on the interagency proposal closed on January 31, 2014. Although the proposed rules have not yet been finalized, the Company has added securities to its investment portfolio through purchase and securitization transactions in contemplation of the final LCR requirements.

Supplemental Reporting of Non-GAAP Results of Operations

M&T consistently provides supplemental reporting of its results on a “net operating” or “tangible” basis, from which M&T excludes the after-tax effect of amortization of core deposit and other intangible assets (and the related goodwill, core deposit intangible and other intangible asset balances, net of applicable deferred tax amounts) and gains and expenses associated with merging acquired operations into the Company, since such items are considered by management to be “nonoperating” in nature. As a result of business combinations and other acquisitions, the Company had intangible assets consisting of goodwill and core deposit and other intangible assets totaling $3.6 billion at each of June 30, 2014, June 30, 2013 and December 31, 2013. Included in such intangible assets was goodwill of $3.5 billion at each of those dates. Amortization of core deposit and other intangible assets, after tax effect, was $6 million during each of the two most recent quarters ($.04 per diluted common share in the recent quarter and $.05 per diluted common share in the initial quarter of 2014), compared with $8 million ($.06 per diluted common share) during the second quarter of 2013. For the six-month periods ended June 30, 2014 and 2013, amortization of core deposit and other intangible assets, after tax effect, totaled $12 million ($.09 per diluted common share) and $16 million ($.12 per diluted common share), respectively. The after-tax impact of merger-related expenses in the three-month and six-month periods ended June 30, 2013 was $5 million ($8 million pre-tax) and $8 million ($12 million pre-tax), respectively. There were no merger-related expenses in the first or second quarters of 2014. The merger-related expenses in 2013 were associated with M&T’s pending acquisition of Hudson City. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

Net operating income was $290 million in the recent quarter, compared with $361 million in the similar 2013 quarter. Diluted net operating earnings per common share for the second quarter of 2014 were $2.02, compared with $2.65 in the year-earlier quarter. Net operating income and diluted net operating earnings per common share were $235 million and $1.66, respectively, in the initial quarter of 2014. For the first six months of 2014, net operating income and diluted net operating earnings per common share were $525 million and $3.68, respectively, compared with $646 million and $4.71, respectively, in the corresponding 2013 period.

Net operating income in the second quarter of 2014 expressed as an annualized rate of return on average tangible assets was 1.35%, compared with 1.81% and 1.15% in the second quarter of 2013 and initial 2014 quarter, respectively. Net operating income represented an annualized return on average tangible common equity of 14.92% in the recently completed quarter, compared with 22.72% and 12.76% in the quarters ended June 30, 2013 and March

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31, 2014, respectively. For the first six months of 2014, net operating income represented an annualized return on average tangible assets and average tangible common shareholders’ equity of 1.25% and 13.86%, respectively, compared with 1.65% and 20.76%, respectively, in the similar 2013 period.

Reconciliations of GAAP amounts with corresponding non-GAAP amounts are provided in table 2.

Taxable-equivalent Net Interest Income

Taxable-equivalent net interest income aggregated $675 million in the recent quarter, down 1% from $684 million in the second quarter of 2013. The impact of a 31 basis point (hundredths of one percent) narrowing of the Company’s net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, was largely offset by a $5.6 billion or 8% rise in average earning assets as compared with the second quarter of 2013. Taxable-equivalent net interest income in the recent quarter was 2% higher than $662 million recorded in the first quarter of 2014. That improvement resulted from a $3.3 billion increase in average earning assets that reflects higher average balances of investment securities of $1.7 billion, interest-bearing deposits held at the Federal Reserve Bank of New York of $1.0 billion and loans and leases of $579 million. Partially offsetting those factors was a 12 basis point narrowing of the net interest margin in the recent quarter to 3.40% from 3.52% in the initial 2014 quarter.

For the first half of 2014, taxable-equivalent net interest income was $1.34 billion, slightly below $1.35 billion in the first six months of 2013. That decline was largely attributable to a 25 basis point narrowing of the net interest margin to 3.46% in 2014 from 3.71% in 2013 reflecting lower yields on average loans outstanding, offset by higher average earning assets, which rose $4.8 billion or 7% from $73.2 billion in the first half of 2013 to $77.9 billion in the first six months of 2014. Contributing to the growth in average earning assets were higher balances of investment securities and interest-bearing deposits at the Federal Reserve Bank of New York, partially offset by lower average balances of loans outstanding.

Average loans and leases declined 2% to $64.3 billion in the recent quarter from $66.0 billion in the second quarter of 2013. Average commercial loans and leases were $19.0 billion in the second quarter of 2014, up $1.3 billion or 7% from $17.7 billion in the year-earlier quarter. Commercial real estate loans averaged $26.1 billion in each of the recent quarter and the second quarter of 2013. Average residential real estate loans outstanding declined $2.1 billion to $8.7 billion in the second quarter of 2014 from $10.8 billion in the similar quarter of 2013. Included in that portfolio were loans originated for sale, which averaged $421 million in the recent quarter, compared with $977 million in the second quarter of 2013. The further decrease in residential real estate loans was largely due to securitization activity during the second and third quarters of 2013. During the second quarter of 2013, the Company securitized approximately $296 million of residential real estate loans and during the third quarter of 2013 approximately $1.0 billion of residential real estate loans were securitized. The residential real estate loans were guaranteed by the Federal Housing Administration (“FHA”) and a substantial majority of the resulting Ginnie Mae mortgage-backed investment securities were retained by the Company in the investment securities portfolio. Average consumer loans and leases totaled $10.5 billion in the recent quarter, $931 million or 8% lower than $11.4 billion in 2013’s second quarter. That decline was largely due to lower average balances of automobile loans. In September 2013, the Company

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securitized and sold approximately $1.4 billion of automobile loans that had been held in its loan portfolio. The Company securitized loans to improve its regulatory capital ratios and strengthen its liquidity and risk profile, including the ability to pledge any of the retained assets, as a result of changing regulatory requirements.

Average loan balances in the recent quarter rose $579 million from the initial quarter of 2014. Average commercial loan and lease balances increased $502 million, or 3%, average balances of consumer loans increased $179 million, or 2%, while average residential real estate loans declined $98 million, or 1%, from 2014’s first quarter. Average commercial real estate loan balances were $26.1 billion during each of the two most recent quarters. The accompanying table summarizes quarterly changes in the major components of the loan and lease portfolio.

AVERAGE LOANS AND LEASES

(net of unearned discount)

Dollars in millions

			Percent increase (decrease) from
	2nd Qtr. 2014		2nd Qtr. 2013			1st Qtr. 2014
Commercial, financial, etc.	$	18,978		7	%		3	%
Real estate—commercial		26,140		—			—
Real estate—consumer		8,746		(19	)		(1	)
Consumer
Automobile		1,567		(38	)		9
Home equity lines		5,744		—			—
Home equity loans		322		(24	)		(7	)
Other		2,846		5			2
Total consumer		10,479		(8	)		2
Total	$	64,343		(2	)%		1	%

For the first six months of 2014, average loans and leases totaled $64.1 billion, $1.9 billion or 3% below $65.9 billion in the year-earlier period. The most significant factors contributing to that decline were the 2013 loan securitizations noted earlier.

The investment securities portfolio averaged $11.0 billion in the second quarter of 2014, up $5.7 billion or 107% from $5.3 billion in the year-earlier quarter and $1.7 billion above the $9.3 billion averaged in the first quarter of 2014. For the first six months of 2014 and 2013, investment securities averaged $10.1 billion and $5.5 billion, respectively. Each of those increases reflects the net effect of purchases, securitization transactions and sales during 2013 and purchases during the first half of 2014, partially offset by maturities and paydowns of mortgage-backed securities. Beginning in the second quarter of 2013, the Company undertook certain actions to improve its regulatory capital and liquidity positions in response to evolving regulatory requirements. As a result, in the second quarter of 2013 approximately $1.0 billion of privately issued mortgage-backed securities held in the available-for-sale portfolio were sold, as were the Company’s holdings of Visa and MasterCard common stock. In the second and third quarters of 2013, the Company securitized approximately $1.3 billion of residential real estate loans guaranteed by the FHA that were held in its loan portfolio. A substantial majority of the Ginnie Mae securities resulting from those securitizations were retained by the Company. During the second quarter of 2013, the Company also began originating FHA residential real estate loans for purposes of securitizing such loans into Ginnie Mae mortgage-backed securities to be retained in the Company’s investment securities portfolio. Approximately $1.6 billion of such loans were originated and securitized during 2013. Finally, beginning in May 2013 the Company purchased approximately $1.9 billion of Ginnie Mae securities and

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$250 million of Fannie Mae securities that were added to the investment securities portfolio during 2013, and another $3.3 billion of Fannie Mae securities and $239 million of Ginnie Mae securities were purchased during the first half of 2014. The Company has increased its holdings of investment securities in response to changing regulatory requirements.

The investment securities portfolio is largely comprised of residential mortgage-backed securities, debt securities issued by municipalities, trust preferred securities issued by certain financial institutions, and shorter-term U.S. Treasury and federal agency notes. When purchasing investment securities, the Company considers its liquidity position and its overall interest-rate risk profile as well as the adequacy of expected returns relative to the risks assumed, including prepayments. In managing its investment securities portfolio, the Company occasionally sells investment securities as a result of changes in interest rates and spreads, actual or anticipated prepayments, credit risk associated with a particular security, or as a result of restructuring its investment securities portfolio in connection with a business combination.

The Company regularly reviews its investment securities for declines in value below amortized cost that might be characterized as “other than temporary.” Nevertheless, there were no other-than-temporary impairment charges recognized in either of the first or second quarters of 2014 or the second quarter of 2013. During the first quarter of 2013, the Company recognized other-than-temporary impairment charges of $10 million. Those impairment charges related to certain privately issued mortgage-backed securities. Persistently high unemployment, loan delinquencies and foreclosures that led to a backlog of homes held for sale by financial institutions and others were significant factors contributing to the recognition of the other-than-temporary impairment charges related to those securities. Substantially all of the privately issued mortgage-backed securities held in the available-for-sale investment securities portfolio were sold late in the second quarter of 2013. The impairment charge in the initial 2013 quarter related to a subset of those securities. Additional information about the investment securities portfolio is included in notes 3 and 12 of Notes to Financial Statements.

Other earning assets include interest-earning deposits at the Federal Reserve Bank of New York and other banks, trading account assets, federal funds sold and agreements to resell securities. Those other earning assets in the aggregate averaged $4.3 billion in the recently completed quarter, compared with $2.7 billion and $3.3 billion in the second quarter of 2013 and the first quarter of 2014, respectively. Interest-bearing deposits at banks averaged $4.1 billion in the second quarter of 2014, compared with $2.4 billion in the year-earlier period and $3.1 billion in the first quarter of 2014. The rise in interest-bearing deposits at banks in the recent quarter as compared with the earlier quarters was due, in part, to increased Wilmington Trust-related customer deposits held at the Federal Reserve Bank of New York. The amounts of investment securities and other earning assets held by the Company are influenced by such factors as demand for loans, which generally yield more than investment securities and other earning assets, ongoing repayments, the levels of deposits, liquidity requirements, and management of balance sheet size and resulting capital ratios.

As a result of the changes described herein, average earning assets aggregated $79.6 billion in the recent quarter, compared with $74.0 billion in the corresponding quarter of 2013 and $76.3 billion in the initial quarter of 2014. Average earning assets totaled $77.9 billion and $73.2 billion during the six-month periods ended June 30, 2014 and 2013, respectively.

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The most significant source of funding for the Company is core deposits. The Company considers noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and time deposits of $250,000 or less as core deposits. The Company’s branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities. Core deposits averaged $67.8 billion in the second quarter of 2014, up 6% from $63.7 billion in the year-earlier quarter and 3% higher than $65.6 billion in the first quarter of 2014. The growth in core deposits since the second quarter of 2013 was due, in part, to the lack of attractive alternative investments available to the Company’s customers resulting from lower interest rates and from the economic environment in the U.S. The low interest rate environment has resulted in a shift in customer savings trends, as average time deposits have continued to decline, while average noninterest-bearing deposits and savings deposits have generally increased. The following table presents quarterly changes in the components of average core deposits. For the six-month periods ended June 30, 2014 and 2013, core deposits averaged $66.7 billion and $62.8 billion, respectively.

AVERAGE CORE DEPOSITS

Dollars in millions

			Percent increase (decrease) from
	2nd Qtr. 2014		2nd Qtr. 2013			1st Qtr. 2014
NOW accounts	$	1,002		9	%		4	%
Savings deposits		38,366		8			3
Time deposits $250,000 or less		2,967		(15	)		(4	)
Noninterest-bearing deposits		25,466		7			5
Total	$	67,801		6	%		3	%

Additional funding sources for the Company included branch-related time deposits over $250,000, deposits associated with the Company’s Cayman Islands office, and brokered deposits. Time deposits over $250,000, excluding brokered certificates of deposit, averaged $378 million in the second quarter of 2014, compared with $318 million and $371 million in the year-earlier quarter and the first quarter of 2014, respectively. Cayman Islands office deposits averaged $339 million, $326 million and $380 million for the three-month periods ended June 30, 2014, June 30, 2013 and March 31, 2014, respectively. Average brokered time deposits totaled $5 million in the recent quarter, compared with $396 million in the second quarter of 2013 and $9 million in the first quarter of 2014. The Company also had brokered NOW and brokered money-market deposit accounts, which in the aggregate averaged $1.1 billion during the recent quarter, compared with $936 million and $1.0 billion during the year-earlier quarter and the initial 2014 quarter, respectively. The levels of brokered NOW and brokered money-market deposit accounts reflect the demand for such deposits, largely resulting from the desire of brokerage firms to earn reasonable yields while ensuring that customer deposits are fully insured. The level of Cayman Islands office deposits and brokered time deposits are also reflective of customer demand. Additional amounts of such deposits may be added in the future depending on market conditions, including demand by customers and other investors for those deposits, and the cost of funds available from alternative sources at the time.

The Company also uses borrowings from banks, securities dealers, various Federal Home Loan Banks, the Federal Reserve Bank of New York and others as sources of funding. Average short-term borrowings totaled $220 million in the recent quarter, compared with $343 million in the second quarter of 2013 and $264 million in the initial 2014 quarter. Included in short-term borrowings were unsecured federal funds borrowings, which generally mature on the next business day, that averaged $162 million and $239 million in the second

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quarters of 2014 and 2013, respectively, compared with $183 million in the first quarter of 2014. Overnight federal funds borrowings represented the largest component of short-term borrowings and totaled $132 million at June 30, 2014, $219 million at June 30, 2013 and $169 million at December 31, 2013.

Long-term borrowings averaged $6.5 billion in the recent quarter, compared with $5.1 billion in the second quarter of 2013 and $5.9 billion in the initial 2014 quarter. Included in average long-term borrowings were subordinated capital notes of $1.6 billion in each of the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014. Junior subordinated debentures associated with trust preferred securities that were included in average long-term borrowings were $834 million in the second quarter of 2014, $1.2 billion in the year-earlier quarter and $1.1 billion in the initial 2014 quarter. On February 27, 2014, M&T redeemed $350 million of 8.50% Enhanced Trust Preferred securities and the associated junior subordinated debentures. Additional information regarding junior subordinated debentures is provided in note 5 of Notes to Financial Statements. During the second quarter of 2014, M&T Bank borrowed approximately $1.1 billion from the Federal Home Loan Bank (“FHLB”) of New York. Those borrowings were split between three-year and five-year terms at fixed rates of interest. Long-term borrowings from the FHLBs of New York, Atlanta and Pittsburgh averaged $396 million in the recent quarter, compared with $30 million and $29 million in the second quarter of 2013 and the first quarter of 2014, respectively. Also included in long-term borrowings were agreements to repurchase securities, which averaged $1.4 billion during each of the second quarters of 2014 and 2013 and the first quarter of 2014. The agreements have various repurchase dates through 2017, however, the contractual maturities of the underlying securities extend beyond such repurchase dates. During the first quarter of 2013, M&T Bank initiated a Bank Note Program whereby M&T Bank may offer up to $5 billion of unsecured senior and subordinated notes. During March 2013, three-year floating rate senior notes due March 2016 were issued for $300 million and five-year 1.45% fixed rate senior notes due March 2018 were issued for $500 million. In January 2014, M&T Bank issued $1.5 billion of senior notes as follows: $250 million of three-year floating rate notes due January 2017; $500 million of three-year 1.25% fixed rate notes due January 2017; and $750 million of five-year 2.30% fixed rate notes due January 2019. The proceeds of the issuances have been predominantly utilized to purchase additional liquid investment securities that will meet the regulatory liquidity requirements. During July 2014, M&T Bank issued an additional $1.7 billion of senior notes as follows: $300 million of three-year floating rate notes due in 2017; $750 million of three-year 1.40% fixed rate notes due in 2017; and $650 million of five-year 2.25% fixed rate notes due in 2019. The Company has utilized interest rate swap agreements to modify the repricing characteristics of certain components of long-term debt. As of June 30, 2014, interest rate swap agreements were used to hedge approximately $1.4 billion of outstanding fixed rate long-term borrowings. Also at June 30, 2014, the Company had entered into forward-starting interest rate swap agreements used to hedge the variability in the interest payments anticipated to be made upon the future issuance of $300 million of the senior notes. These forward-starting interest rate swaps were terminated upon the issuance of such notes in July 2014. Further information on interest rate swap agreements is provided in note 10 of Notes to Financial Statements.

Changes in the composition of the Company’s earning assets and interest-bearing liabilities, as discussed herein, as well as changes in interest rates and spreads, can impact net interest income. Net interest spread, or the difference between the taxable-equivalent yield on earning assets and the rate paid on interest-bearing liabilities, was 3.22% in the second quarter of 2014, compared with 3.48% in the year-earlier quarter. The yield on earning assets during the recent quarter was 3.73%, down 37 basis

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points from 4.10% in the second quarter of 2013, while the rate paid on interest-bearing liabilities declined 11 basis points to .51% from .62% in the second quarter of 2013. In the initial quarter of 2014, the net interest spread was 3.32%, the yield on earning assets was 3.87% and the rate paid on interest-bearing liabilities was .55%. For the first half of 2014, the net interest spread was 3.27%, down 22 basis points from the corresponding 2013 period. The yield on earning assets and the rate paid on interest-bearing liabilities were 3.80% and .53%, respectively, during the first six months of 2014, compared with 4.12% and .63%, respectively, in the similar 2013 period. The narrowing of the net interest spread in the 2014 periods as compared with the three months and six months ended June 30, 2013 reflects the higher level of deposits held at the Federal Reserve Bank of New York, higher average balances of investment securities and the ongoing impact of the low interest rate environment on loan yields.

Net interest-free funds consist largely of noninterest-bearing demand deposits and shareholders’ equity, partially offset by bank owned life insurance and non-earning assets, including goodwill and core deposit and other intangible assets. Net interest-free funds averaged $28.6 billion in the second quarter of 2014, compared with $26.6 billion in the year-earlier quarter and $26.9 billion in the initial quarter of 2014. The increase in net interest-free funds in the recent quarter as compared with the earlier quarters was predominantly the result of higher average balances of noninterest-bearing deposits. Such deposits averaged $25.5 billion, $23.7 billion and $24.1 billion in the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014, respectively. During the first six months of 2014 and 2013, average net interest-free funds aggregated $27.8 billion and $26.0 billion, respectively. That increase was also reflective of higher average balances of noninterest-bearing deposits. Goodwill and core deposit and other intangible assets averaged $3.6 billion during each of the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014. The cash surrender value of bank owned life insurance averaged $1.7 billion in each of the two most recent quarters and $1.6 billion in the second quarter of 2013. Increases in the cash surrender value of bank owned life insurance and benefits received are not included in interest income, but rather are recorded in “other revenues from operations.” The contribution of net interest-free funds to net interest margin was .18% in the recent quarter, compared with .23% in the second quarter of 2013 and .20% in the first quarter of 2014. That contribution for the first six months of 2014 and 2013 was .19% and .22%, respectively.

Reflecting the changes to the net interest spread and the contribution of interest-free funds as described herein, the Company’s net interest margin was 3.40% in the recent quarter, compared with 3.71% in the year-earlier quarter and 3.52% in the first quarter of 2014. During the first six months of 2014 and 2013, the net interest margin was 3.46% and 3.71%, respectively. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in reductions in spreads, could adversely impact the Company’s net interest income and net interest margin. In particular, the relatively low interest rate environment continues to exert downward pressure on yields on loans, investment securities and other earning assets.

Management assesses the potential impact of future changes in interest rates and spreads by projecting net interest income under several interest rate scenarios. In managing interest rate risk, the Company has utilized interest rate swap agreements to modify the repricing characteristics of certain portions of its portfolios of earning assets and interest-bearing

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liabilities. Periodic settlement amounts arising from these agreements are generally reflected in either the yields earned on assets or the rates paid on interest-bearing liabilities. The notional amount of interest rate swap agreements entered into for interest rate risk management purposes was $1.7 billion at June 30, 2014, compared with $1.4 billion at each of June 30, 2013 and March 31, 2014. Under the terms of $1.4 billion of those swap agreements that are designated as fair value hedges of certain fixed rate long-term borrowings, the Company received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Under the terms of the remaining $300 million of swap agreements outstanding at June 30, 2014 that were designated as cash flow hedges related to the forecasted issuance of senior note borrowings in July 2014, the Company was to pay a fixed rate of interest and receive a variable rate. Those forward-starting interest rate swaps were terminated upon issuance of the senior note borrowings in July 2014.

In a fair value hedge, the fair value of the derivative (the interest rate swap agreement) and changes in the fair value of the hedged item are recorded in the Company’s consolidated balance sheet with the corresponding gain or loss recognized in current earnings. The difference between changes in the fair value of the interest rate swap agreements and the hedged items represents hedge ineffectiveness and is recorded in “other revenues from operations” in the Company’s consolidated statement of income. In a cash flow hedge, unlike in a fair value hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings. The ineffective portion of the gain or loss is reported in “other revenues from operations” immediately. The amounts of hedge ineffectiveness recognized during the quarters ended June 30, 2014 and 2013 and the quarter ended March 31, 2014 were not material to the Company’s results of operations. The estimated aggregate fair value of interest rate swap agreements designated as fair value hedges represented gains of approximately $93 million at June 30, 2014, $114 million at June 30, 2013, $95 million at March 31, 2014 and $103 million at December 31, 2013. The fair values of such swap agreements were substantially offset by changes in the fair values of the hedged items. The estimated fair values of the interest rate swap agreements designated as cash flow hedges were losses of $1 million at June 30, 2014. Net of applicable income taxes, such losses have been included in “accumulated other comprehensive income, net” in the Company’s consolidated balance sheet. The changes in the fair values of the interest rate swap agreements and the hedged items primarily result from the effects of changing interest rates and spreads. The Company’s credit exposure as of June 30, 2014 with respect to the estimated fair value of interest rate swap agreements used for managing interest rate risk has been substantially mitigated through master netting arrangements with trading account interest rate contracts with the same counterparty as well as counterparty postings of $62 million of collateral with the Company.

The weighted-average rates to be received and paid under interest rate swap agreements currently in effect were 3.96% and 1.02%, respectively, at June 30, 2014. The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes, the related effect on net interest income and margin, and the weighted-average interest rates paid or received on those swap agreements are presented in the accompanying table. Additional information about the Company’s use of interest rate swap agreements and other derivatives is included in note 10 of Notes to Financial Statements.

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INTEREST RATE SWAP AGREEMENTS

Dollars in thousands

	Three months ended June 30,
	2014						2013
	Amount			Rate(a)			Amount			Rate(a)
Increase (decrease) in:
Interest income	$	—			—	%	$	—			—	%
Interest expense		(11,264	)		(.09	)		(9,578	)		(.08	)
Net interest income/margin	$	11,264			.05	%	$	9,578			.05	%
Average notional amount	$	1,421,978					$	932,967
Rate received(b)					4.35	%					5.91	%
Rate paid(b)					1.17	%					1.79	%
	Six months ended June 30,
	2014						2013
	Amount			Rate(a)			Amount			Rate(a)
Increase (decrease) in:
Interest income	$	—			—	%	$	—			—	%
Interest expense		(22,556	)		(.09	)		(19,092	)		(.08	)
Net interest income/margin	$	22,556			.06	%	$	19,092			.05	%
Average notional amount	$	1,411,050					$	916,575
Rate received(b)					4.39	%					6.03	%
Rate paid(b)					1.18	%					1.83	%

(a) Computed as an annualized percentage of average earning assets or interest-bearing liabilities.

(b) Weighted-average rate paid or received on interest rate swap agreements in effect during the period.

As a financial intermediary, the Company is exposed to various risks, including liquidity and market risk. Liquidity refers to the Company’s ability to ensure that sufficient cash flow and liquid assets are available to satisfy current and future obligations, including demands for loans and deposit withdrawals, funding operating costs, and other corporate purposes. Liquidity risk arises whenever the maturities of financial instruments included in assets and liabilities differ. M&T’s banking subsidiaries have access to additional funding sources through borrowings from the FHLB of New York, lines of credit with the Federal Reserve Bank of New York, the previously noted Bank Note Program, and other available borrowing facilities. The Company has, from time to time, issued subordinated capital notes to provide liquidity and enhance regulatory capital ratios. Such notes generally qualify under the Federal Reserve Board’s current risk-based capital guidelines for inclusion in the Company’s capital. However, pursuant to the Dodd-Frank Act, trust preferred securities associated with the Company’s junior subordinated debentures will be phased-out of the definition of Tier 1 capital. Effective January 1, 2015, 75% of such securities will be excluded from the Company’s Tier 1 capital, and beginning January 1, 2016, 100% will be excluded. The amounts excluded from Tier 1 capital will be includable in total capital.

The Company has informal and sometimes reciprocal sources of funding available through various arrangements for unsecured short-term borrowings from a wide group of banks and other financial institutions. Short-term federal funds borrowings aggregated $132 million, $219 million and $169 million at June 30, 2014, June 30, 2013 and December 31, 2013, respectively. In general, those borrowings were unsecured and matured on the next business day. In addition to satisfying customer demand, Cayman Islands office deposits and brokered deposits may be used by the Company as an alternative to short-term borrowings. Cayman Islands office

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deposits totaled $238 million at June 30, 2014, $284 million at June 30, 2013 and $323 million at December 31, 2013. Outstanding brokered time deposits at June 30, 2014, June 30, 2013 and December 31, 2013 were $5 million, $361 million and $26 million, respectively. At June 30, 2014, the weighted-average remaining term to maturity of brokered time deposits was one month. The Company also had brokered NOW and brokered money-market deposit accounts which aggregated $1.1 billion, $1.2 billion and $1.0 billion at June 30, 2014, June 30, 2013 and December 31, 2013, respectively.

The Company’s ability to obtain funding from these or other sources could be negatively impacted should the Company experience a substantial deterioration in its financial condition or its debt ratings, or should the availability of short-term funding become restricted due to a disruption in the financial markets. The Company attempts to quantify such credit-event risk by modeling scenarios that estimate the liquidity impact resulting from a short-term ratings downgrade over various grading levels. Such impact is estimated by attempting to measure the effect on available unsecured lines of credit, available capacity from secured borrowing sources and securitizable assets. In addition to deposits and borrowings, other sources of liquidity include maturities of investment securities and other earning assets, repayments of loans and investment securities, and cash generated from operations, such as fees collected for services.

Certain customers of the Company obtain financing through the issuance of variable rate demand bonds (“VRDBs”). The VRDBs are generally enhanced by letters of credit provided by M&T Bank. M&T Bank oftentimes acts as remarketing agent for the VRDBs and, at its discretion, may from time-to-time own some of the VRDBs while such instruments are remarketed. When this occurs, the VRDBs are classified as trading assets in the Company’s consolidated balance sheet. Nevertheless, M&T Bank is not contractually obligated to purchase the VRDBs. The value of VRDBs in the Company’s trading account totaled $4 million and $5 million at June 30, 2014 and 2013, respectively, and $25 million at December 31, 2013. The total amount of VRDBs outstanding backed by M&T Bank letters of credit was $1.7 billion at each of June 30, 2014 and December 31, 2013, compared with $2.0 billion at June 30, 2013. M&T Bank also serves as remarketing agent for most of those bonds.

The Company enters into contractual obligations in the normal course of business which require future cash payments. Such obligations include, among others, payments related to deposits, borrowings, leases and other contractual commitments. Off-balance sheet commitments to customers may impact liquidity, including commitments to extend credit, standby letters of credit, commercial letters of credit, financial guarantees and indemnification contracts, and commitments to sell real estate loans. Because many of these commitments or contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows. Further discussion of these commitments is provided in note 13 of Notes to Financial Statements.

M&T’s primary source of funds to pay for operating expenses, shareholder dividends and treasury stock repurchases has historically been the receipt of dividends from its banking subsidiaries, which are subject to various regulatory limitations. Dividends from any banking subsidiary to M&T are limited by the amount of earnings of the banking subsidiary in the current year and the two preceding years. For purposes of that test, at June 30, 2014 approximately $1.1 billion was available for payment of dividends to M&T from banking subsidiaries. These historic sources of cash flow have been augmented in the past by the issuance of trust preferred securities and senior notes payable. Information regarding trust preferred securities and the related junior subordinated debentures is included in note 5 of Notes to Financial Statements.

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Management closely monitors the Company’s liquidity position on an ongoing basis for compliance with internal policies and believes that available sources of liquidity are adequate to meet funding needs anticipated in the normal course of business. Management does not anticipate engaging in any activities, either currently or in the long-term, for which adequate funding would not be available and would therefore result in a significant strain on liquidity at either M&T or its subsidiary banks. Banking regulators have proposed rules requiring a banking company to maintain a minimum amount of liquid assets to withstand a standardized supervisory liquidity stress scenario. The proposed effective date is January 1, 2015, subject to a two year phase-in period. The Company has taken steps as noted herein to enhance its liquidity and will take further action, as necessary, to comply with the final regulations when they take effect.

Market risk is the risk of loss from adverse changes in the market prices and/or interest rates of the Company’s financial instruments. The primary market risk the Company is exposed to is interest rate risk. Interest rate risk arises from the Company’s core banking activities of lending and deposit-taking, because assets and liabilities reprice at different times and by different amounts as interest rates change. As a result, net interest income earned by the Company is subject to the effects of changing interest rates. The Company measures interest rate risk by calculating the variability of net interest income in future periods under various interest rate scenarios using projected balances for earning assets, interest-bearing liabilities and derivatives used to hedge interest rate risk. Management’s philosophy toward interest rate risk management is to limit the variability of net interest income. The balances of financial instruments used in the projections are based on expected growth from forecasted business opportunities, anticipated prepayments of loans and investment securities, and expected maturities of investment securities, loans and deposits. Management uses a “value of equity” model to supplement the modeling technique described above. Those supplemental analyses are based on discounted cash flows associated with on- and off-balance sheet financial instruments. Such analyses are modeled to reflect changes in interest rates and provide management with a long-term interest rate risk metric.

The Company’s Asset-Liability Committee, which includes members of senior management, monitors the sensitivity of the Company’s net interest income to changes in interest rates with the aid of a computer model that forecasts net interest income under different interest rate scenarios. In modeling changing interest rates, the Company considers different yield curve shapes that consider both parallel (that is, simultaneous changes in interest rates at each point on the yield curve) and non-parallel (that is, allowing interest rates at points on the yield curve to vary by different amounts) shifts in the yield curve. In utilizing the model, market-implied forward interest rates over the subsequent twelve months are generally used to determine a base interest rate scenario for the net interest income simulation. That calculated base net interest income is then compared to the income calculated under the varying interest rate scenarios. The model considers the impact of ongoing lending and deposit-gathering activities, as well as interrelationships in the magnitude and timing of the repricing of financial instruments, including the effect of changing interest rates on expected prepayments and maturities. When deemed prudent, management has taken actions to mitigate exposure to interest rate risk through the use of on- or off-balance sheet financial instruments and intends to do so in the future. Possible actions include, but are not limited to, changes in the pricing of loan and deposit products, modifying the composition of earning assets and interest-bearing liabilities, and adding to, modifying or terminating existing interest rate swap agreements or other financial instruments used for interest rate risk management purposes.

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The accompanying table as of June 30, 2014 and December 31, 2013 displays the estimated impact on net interest income from non-trading financial instruments in the base scenario described above resulting from parallel changes in interest rates across repricing categories during the first modeling year.

SENSITIVITY OF NET INTEREST INCOME

TO CHANGES IN INTEREST RATES

Dollars in thousands

	Calculated increase (decrease) in projected net interest income
Changes in interest rates	June 30, 2014			December 31, 2013
+200 basis points	$	214,949			245,089
+100 basis points		113,569			134,188
-100 basis points		(73,569	)		(72,755	)
-200 basis points		(95,927	)		(100,543	)

The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income. The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments held for non-trading purposes, loan and deposit volumes and pricing, and deposit maturities. In the scenarios presented, the Company also assumed gradual changes in interest rates during a twelve-month period of 100 and 200 basis points, as compared with the assumed base scenario. In the event that a 100 or 200 basis point rate change cannot be achieved, the applicable rate changes are limited to lesser amounts such that interest rates cannot be less than zero. The assumptions used in interest rate sensitivity modeling are inherently uncertain and, as a result, the Company cannot precisely predict the impact of changes in interest rates on net interest income. Actual results may differ significantly from those presented due to the timing, magnitude and frequency of changes in interest rates and changes in market conditions and interest rate differentials (spreads) between maturity/repricing categories, as well as any actions, such as those previously described, which management may take to counter such changes.

Changes in fair value of the Company’s financial instruments can also result from a lack of trading activity for similar instruments in the financial markets. That impact is most notable on the values assigned to some of the Company’s investment securities. Information about the fair valuation of investment securities is presented herein under the heading “Capital” and in notes 3 and 12 of Notes to Financial Statements.

The Company engages in trading account activities to meet the financial needs of customers and to fund the Company’s obligations under certain deferred compensation plans. Financial instruments utilized in trading account activities consist predominantly of interest rate contracts, such as swap agreements, and forward and futures contracts related to foreign currencies. The Company generally mitigates the foreign currency and interest rate risk associated with trading account activities by entering into offsetting positions that are also included in the trading account. The fair values of the offsetting trading account positions associated with interest rate contracts and foreign currency and other option and futures contracts are presented in note 10 of Notes to Financial Statements. The amounts of gross and net trading account positions, as well as the type of trading account activities conducted by the Company, are subject to a well-defined series of potential loss exposure limits established by management and approved by M&T’s Board of Directors. However, as with any non-government guaranteed financial instrument, the Company is exposed to credit risk associated with counterparties to the Company’s trading account activities.

The notional amounts of interest rate contracts entered into for trading account purposes totaled $17.6 billion at June 30, 2014, compared with $15.4 billion at June 30, 2013 and $17.4 billion at December 31, 2013. The notional amounts of

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foreign currency and other option and futures contracts entered into for trading account purposes aggregated $866 million at June 30, 2014, compared with $995 million at June 30, 2013 and $1.4 billion at December 31, 2013. The notional amounts presented herein include both the transactions between customers and the Company and the offsetting risk management transactions. Although the notional amounts of these trading contracts are not recorded in the consolidated balance sheet, the fair values of all financial instruments used for trading account activities are recorded in the consolidated balance sheet. The fair values of all trading account assets and liabilities totaled $313 million and $202 million, respectively, at June 30, 2014, $378 million and $278 million, respectively, at June 30, 2013, and $376 million and $250 million, respectively, at December 31, 2013. Included in trading account assets were assets related to deferred compensation plans totaling $26 million at each of June 30, 2014 and 2013 and $29 million at December 31, 2013. Changes in the fair value of such assets are recorded as “trading account and foreign exchange gains” in the consolidated statement of income. Included in “other liabilities” in the consolidated balance sheet at each of June 30, 2014 and 2013 were $30 million of liabilities related to deferred compensation plans, while at December 31, 2013 liabilities related to deferred compensation plans totaled $31 million. Changes in the balances of such liabilities due to the valuation of allocated investment options to which the liabilities are indexed are recorded in “other costs of operations” in the consolidated statement of income.

Given the Company’s policies, limits and positions, management believes that the potential loss exposure to the Company resulting from market risk associated with trading activities was not material, however, as previously noted, the Company is exposed to credit risk associated with counterparties to transactions related to the Company’s trading account activities. Additional information about the Company’s use of derivative financial instruments in its trading activities is included in note 10 of Notes to Financial Statements.

Provision for Credit Losses

The Company maintains an allowance for credit losses that in management’s judgment appropriately reflects losses inherent in the loan and lease portfolio. A provision for credit losses is recorded to adjust the level of the allowance as deemed necessary by management. The provision for credit losses in the recent quarter was $30 million, compared with $57 million in the second quarter of 2013 and $32 million in the initial quarter of 2014. For the six-month periods ended June 30, 2014 and 2013, the provision for credit losses was $62 million and $95 million, respectively. Net loan charge-offs were $29 million in the recently completed quarter, compared with $57 million in the year-earlier quarter and $32 million in the first quarter of 2014. Net charge-offs as an annualized percentage of average loans and leases were .18% in the second quarter of 2014, compared with .35% and .20% in the quarters ended June 30, 2013 and March 31, 2014, respectively. Net charge-offs for the six-month period ended June 30 aggregated $61 million in 2014 and $94 million in 2013, representing annualized rates of .19% and .29%, respectively, of average loans and leases. A summary of net charge–offs by loan type follows.

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NET CHARGE-OFFS (RECOVERIES)

BY LOAN/LEASE TYPE

In thousands

	2014
	1st Qtr.		2nd Qtr.			Year to-date
Commercial, financial,leasing, etc.	$	9,146		10,140			19,286
Real estate:
Commercial		289		1,322			1,611
Residential		5,822		2,701			8,523
Consumer		16,651		14,939			31,590
	$	31,908		29,102			61,010
	2013
	1st Qtr.		2nd Qtr.			Year to-date
Commercial, financial,leasing, etc.	$	6,788		44,631			51,419
Real estate:
Commercial		8,773		(7,161	)		1,612
Residential		3,721		3,373			7,094
Consumer		17,461		16,209			33,670
	$	36,743		57,052			93,795

Included in net charge-offs of commercial loans in the second quarter of 2013 were $30 million of charge-offs for a relationship with a motor vehicle-related parts wholesaler. Included in net charge-offs of consumer loans and leases were net charge-offs during the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014, respectively, of: automobile loans of $2 million, $3 million and $4 million; recreational vehicle loans of $3 million, $3 million and $4 million; and home equity loans and lines of credit, including Alt-A second lien loans, of $5 million, $5 million and $4 million. Alt-A loans represent loans secured by residential real estate that at origination typically included some form of limited borrower documentation requirements as compared with more traditional loans. Loans in the Company’s Alt-A portfolio were originated by the Company prior to 2008.

Loans acquired in connection with acquisition transactions subsequent to 2008 were recorded at fair value with no carry-over of any previously recorded allowance for credit losses. Determining the fair value of the acquired loans required estimating cash flows expected to be collected on the loans and discounting those cash flows at then-current interest rates. The excess of expected cash flows over the carrying value of the loans is recognized as interest income over the lives of loans. The difference between contractually required payments and the cash flows expected to be collected is referred to as the nonaccretable balance and is not recorded on the consolidated balance sheet. The nonaccretable balance reflects estimated future credit losses and other contractually required payments that the Company does not expect to collect. The Company regularly evaluates the reasonableness of its cash flow projections. Any decreases to the expected cash flows require the Company to evaluate the need for an additional allowance for credit losses and could lead to charge-offs of acquired loan balances. Any significant increases in expected cash flows result in additional interest income to be recognized over the then-remaining lives of the loans. The carrying amount of loans obtained in acquisitions subsequent to 2008 was $3.2 billion, $4.9 billion, $4.0 billion and $3.7 billion at June 30, 2014, June 30, 2013, December 31, 2013 and March 31, 2014, respectively. The portion of the nonaccretable balance related to remaining principal losses as well as life-to-date principal losses charged against the nonaccretable balance as of June 30, 2014 and December 31, 2013 are presented in the accompanying table.

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	Nonaccretable balance - principal
	Remaining balance				Life-to-date charges
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
	(in thousands)
Commercial, financing, leasing, etc.	$	26,059		31,931		74,847		69,772
Commercial real estate		106,894		110,984		280,540		277,222
Residential real estate		21,062		23,201		56,147		54,177
Consumer		31,886		33,989		76,135		74,039
Total	$	185,901		200,105		487,669		475,210

Nonaccrual loans totaled $880 million or 1.36% of total loans and leases outstanding at June 30, 2014, compared with $965 million or 1.46% at June 30, 2013, $874 million or 1.36% at December 31, 2013 and $891 million or 1.39% at March 31, 2014. The decline in nonaccrual loans at the most recent quarter-end as compared with June 30, 2013 was largely due to lower commercial real estate loans, including residential builder and developer and construction loans, and residential real estate loans, partially offset by an increase in commercial loans in nonaccrual status.

Accruing loans past due 90 days or more (excluding acquired loans) were $289 million or .45% of total loans and leases at June 30, 2014, compared with $340 million or .52% at June 30, 2013, $369 million or .58% at December 31, 2013 and $307 million or .48% at March 31, 2014. Those loans included loans guaranteed by government-related entities of $276 million at June 30, 2014, $315 million at June 30, 2013, $298 million at December 31, 2013 and $291 million at March 31, 2014. Such guaranteed loans included one-to-four family residential mortgage loans serviced by the Company that were repurchased to reduce associated servicing costs, including a requirement to advance principal and interest payments that had not been received from individual mortgagors. Despite the loans being purchased by the Company, the insurance or guarantee by the applicable government-related entity remains in force. The outstanding principal balances of the repurchased loans are fully guaranteed by government–related entities and totaled $238 million at June 30, 2014, $284 million at June 30, 2013, $255 million at December 31, 2013 and $251 million at March 31, 2014.

Purchased impaired loans are loans obtained in acquisition transactions subsequent to 2008 that as of the acquisition date were specifically identified as displaying signs of credit deterioration and for which the Company did not expect to collect all outstanding principal and contractually required interest payments. Those loans were impaired at the date of acquisition, were recorded at estimated fair value and were generally delinquent in payments, but, in accordance with GAAP, the Company continues to accrue interest income on such loans based on the estimated expected cash flows associated with the loans. The carrying amount of such loans was $283 million at June 30, 2014, or less than 1% of total loans. Purchased impaired loans totaled $395 million and $331 million at June 30 and December 31, 2013. The decline in such loans from June 30, 2013 was predominantly the result of payments received from customers.

Acquired accruing loans past due 90 days or more are loans that could not be specifically identified as impaired as of the acquisition date, but were recorded at estimated fair value as of such date. Such loans totaled $135 million at June 30, 2014, compared with $156 million at June 30, 2013 and $130 million at December 31, 2013.

In an effort to assist borrowers, the Company modified the terms of select loans. If the borrower was experiencing financial difficulty and a concession was granted, the Company considers such modifications as troubled debt restructurings.

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Loan modifications included such actions as the extension of loan maturity dates and the lowering of interest rates and monthly payments. The objective of the modifications was to increase loan repayments by customers and thereby reduce net charge-offs. In accordance with GAAP, the modified loans are included in impaired loans for purposes of determining the level of the allowance for credit losses. Information about modifications of loans that are considered troubled debt restructurings is included in note 4 of Notes to Financial Statements.

Residential real estate loans modified under specified loss mitigation programs prescribed by government guarantors have not been included in renegotiated loans because the loan guarantee remains in force and, accordingly, the Company has not granted a concession with respect to the ultimate collection of the original loan balance. Such loans aggregated $158 million, $200 million and $206 million at June 30, 2014, June 30, 2013 and December 31, 2013, respectively.

Nonaccrual commercial loans and leases aggregated $192 million at June 30, 2014, $145 million at June 30, 2013, $111 million at December 31, 2013 and $138 million at March 31, 2014. The additional nonaccrual commercial loans at the recent quarter-end were not concentrated in any industry group. Commercial real estate loans classified as nonaccrual totaled $296 million at June 30, 2014, $369 million at June 30, 2013, $305 million at December 31, 2013 and $291 million at March 31, 2014. The lower levels of nonaccrual commercial real estate loans at the three most recent quarter-ends as compared with June 30, 2013 were due largely to decreased loans in that category to residential homebuilders and developers, which totaled $84 million and $132 million at June 30, 2014 and June 30, 2013, respectively, $96 million at December 31, 2013 and $90 million at March 31, 2014. Information about the location of nonaccrual and charged–off loans to residential real estate builders and developers as of and for the three-month period ended June 30, 2014 is presented in the accompanying table.

RESIDENTIAL BUILDER AND DEVELOPER LOANS, NET OF UNEARNED DISCOUNT

	June 30, 2014							Quarter ended June 30, 2014
			Nonaccrual					Net charge-offs (recoveries)
	Outstanding balances(a)		Balances		Percent of outstanding balances			Balances			Annualized percent of average outstanding balances
	(dollars in thousands)
New York	$	494,102	$	7,007		1.42	%	$	37			.03	%
Pennsylvania		137,202		45,292		33.01			(217	)		(.69	)
Mid-Atlantic		506,866		32,952		6.50			(708	)		(.56	)
Other		306,825		777		.25			—			—
Total	$	1,444,995	$	86,028		5.95	%	$	(888	)		(.26	)%

(a) Includes approximately $26 million of loans not secured by real estate, of which approximately $2 million are in nonaccrual status.

Residential real estate loans classified as nonaccrual were $278 million at June 30, 2014, compared with $339 million at June 30, 2013, $334 million at December 31, 2013 and $338 million at March 31, 2014. The decrease in such nonaccrual loans at the recent quarter-end was predominantly related to the payoff of $64 million of loans to one customer that were secured by residential real estate. Included in residential real estate loans classified as nonaccrual were Alt-A loans of $79 million, $85 million, $81 million and $79 million at June 30, 2014, June 30, 2013, December 31, 2013 and March 31, 2014, respectively. Residential real estate loans past due 90 days or more and accruing interest

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(excluding acquired loans) totaled $270 million at June 30, 2014, compared with $313 million at June 30, 2013, $295 million at December 31, 2013 and $285 million at March 31, 2014. A substantial portion of such amounts related to loans guaranteed by government-related entities. Information about location of nonaccrual and charged–off residential real estate loans as of and for the quarter ended June 30, 2014 is presented in the accompanying table.

Nonaccrual consumer loans totaled $114 million and $112 million at June 30, 2014 and 2013, respectively, compared with $125 million at December 31, 2013 and $124 million at March 31, 2014. Included in nonaccrual consumer loans at June 30, 2014, June 30, 2013, December 31, 2013 and March 31, 2014 were automobile loans of $16 million, $21 million, $21 million and $16 million, respectively; recreational vehicle loans of $8 million, $9 million, $12 million and $11 million, respectively; and outstanding balances of home equity loans and lines of credit, including junior lien Alt-A loans, of $84 million, $70 million, $79 million and $83 million, respectively. Information about the location of nonaccrual and charged–off home equity loans and lines of credit as of and for the quarter ended June 30, 2014 is presented in the accompanying table.

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SELECTED RESIDENTIAL REAL ESTATE-RELATED LOAN DATA

	June 30, 2014							Quarter ended June 30, 2014
			Nonaccrual					Net charge-offs (recoveries)
	Outstanding balances		Balances		Percent of outstanding balances			Balances			Annualized percent of average outstanding balances
	(dollars in thousands)
Residential mortgages:
New York	$	3,520,286	$	72,102		2.05	%	$	510			.06	%
Pennsylvania		1,160,210		20,877		1.80			463			.16
Mid-Atlantic		2,102,399		33,184		1.58			1,067			.20
Other		1,480,962		69,356		4.68			811			.22
Total	$	8,263,857	$	195,519		2.37	%	$	2,851			.14	%
Residential construction:
New York	$	6,915	$	1,299		18.79	%	$	(3	)		(.17	)%
Pennsylvania		1,628		716		43.98			99			22.36
Mid-Atlantic		7,478		160		2.14			—			—
Other		17,239		1,122		6.51			(656	)		(16.11	)
Total	$	33,260	$	3,297		9.91	%	$	(560	)		(6.87	)%
Alt-A first mortgages:
New York	$	60,328	$	17,564		29.11	%	$	—			—	%
Pennsylvania		10,908		2,861		26.23			(18	)		(.64	)
Mid-Atlantic		71,127		11,629		16.35			14			.08
Other		217,286		46,632		21.46			414			.75
Total	$	359,649	$	78,686		21.88	%	$	410			.45	%
Alt-A junior lien:
New York	$	1,207	$	129		10.69	%	$	44			14.42	%
Pennsylvania		385		59		15.32			—			—
Mid-Atlantic		3,291		143		4.35			86			10.27
Other		7,508		672		8.95			136			7.12
Total	$	12,391	$	1,003		8.09	%	$	266			8.43	%
First lien home equity loans:
New York	$	21,313	$	2,550		11.96	%	$	45			.61	%
Pennsylvania		69,387		3,660		5.27			70			.40
Mid-Atlantic		86,994		1,199		1.38			2			.01
Other		2,861		504		17.62			110			15.19
Total	$	180,555	$	7,913		4.38	%	$	227			.49	%
First lien home equity lines:
New York	$	1,385,285	$	13,080		.94	%	$	519			.15	%
Pennsylvania		840,717		5,738		.68			147			.07
Mid-Atlantic		869,957		2,760		.32			62			.03
Other		33,552		1,562		4.66			—			—
Total	$	3,129,511	$	23,140		.74	%	$	728			.09	%
Junior lien home equity loans:
New York	$	17,525	$	5,071		28.94	%	$	93			2.06	%
Pennsylvania		21,365		1,202		5.63			12			.22
Mid-Atlantic		72,147		2,125		2.95			57			.31
Other		8,833		334		3.78			(28	)		(1.25	)
Total	$	119,870	$	8,732		7.28	%	$	134			.44	%
Junior lien home equity lines:
New York	$	958,499	$	29,363		3.06	%	$	1,399			.59	%
Pennsylvania		392,999		4,116		1.05			469			.48
Mid-Atlantic		1,201,514		7,657		.64			843			.28
Other		68,921		2,067		3.00			619			3.56
Total	$	2,621,933	$	43,203		1.65	%	$	3,330			.51	%

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A comparative summary of nonperforming assets and certain past due loan data and credit quality ratios is presented in the accompanying table.

NONPERFORMING ASSET AND PAST DUE, RENEGOTIATED AND IMPAIRED LOAN DATA

Dollars in thousands

	2014 Quarters						2013 Quarters
	Second			First			Fourth			Third			Second
Nonaccrual loans	$	880,134			890,893			874,156			915,871			964,906
Real estate and other foreclosed assets		59,793			59,407			66,875			89,203			82,088
Total nonperforming assets	$	939,927			950,300			941,031			1,005,074			1,046,994
Accruing loans past due 90 days or more(a)	$	289,016			307,017			368,510			339,792			340,467
Government guaranteed loans included in totals above:
Nonaccrual loans	$	81,817			75,959			63,647			68,519			69,508
Accruing loans past due 90 days or more		275,846			291,418			297,918			320,732			315,281
Renegotiated loans	$	270,223			257,889			257,092			259,301			263,351
Acquired accruing loans past due 90 days or more(b)	$	134,580			120,996			130,162			153,585			155,686
Purchased impaired loans(c):
Outstanding customer balance	$	504,584			534,331			579,975			648,118			725,196
Carrying amount		282,517			303,388			330,792			357,337			394,697
Nonaccrual loans to total loans and leases, net of unearned discount		1.36	%		1.39	%		1.36	%		1.44	%		1.46	%
Nonperforming assets to total net loans and leases and real estate and other foreclosed assets		1.45	%		1.48	%		1.47	%		1.58	%		1.59	%
Accruing loans past due 90 days or more (a) to total loans and leases, net of unearned discount		.45	%		.48	%		.58	%		.53	%		.52	%

(a) Excludes acquired loans. Predominantly residential mortgage loans.

(b) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(c) Accruing loans that were impaired at acquisition date and recorded at fair value.

Real estate and other foreclosed assets were $60 million at June 30, 2014, compared with $82 million a year earlier, $67 million at December 31, 2013 and $59 million at March 31, 2014. At June 30, 2014, the Company’s holding of residential real estate-related properties comprised 81% of foreclosed assets.

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Management determined the allowance for credit losses by performing ongoing evaluations of the loan and lease portfolio, including such factors as the differing economic risks associated with each loan category, the financial condition of specific borrowers, the economic environment in which borrowers operate, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any guarantees or indemnifications. Management evaluated the impact of changes in interest rates and overall economic conditions on the ability of borrowers to meet repayment obligations when quantifying the Company’s exposure to credit losses and the allowance for such losses as of each reporting date. Factors also considered by management when performing its assessment, in addition to general economic conditions and the other factors described above, included, but were not limited to: (i) the impact of residential real estate values on the Company’s portfolio of loans to residential real estate builders and developers and other loans secured by residential real estate; (ii) the concentrations of commercial real estate loans in the Company’s loan portfolio; (iii) the amount of commercial and industrial loans to businesses in areas of New York State outside of the New York City metropolitan area and in central Pennsylvania that have historically experienced less economic growth and vitality than the vast majority of other regions of the country; (iv) the repayment performance associated with the Company’s first and second lien loans secured by residential real estate; and (v) the size of the Company’s portfolio of loans to individual consumers, which historically have experienced higher net charge-offs as a percentage of loans outstanding than other loan types. The level of the allowance is adjusted based on the results of management’s analysis.

Management cautiously and conservatively evaluated the allowance for credit losses as of June 30, 2014 in light of: (i) residential real estate values and the level of delinquencies of loans secured by residential real estate; (ii) economic conditions in the markets served by the Company; (iii) continuing weakness in industrial employment in upstate New York and central Pennsylvania; (iv) the significant subjectivity involved in many commercial real estate valuations; and (v) the amount of loan growth experienced by the Company. While there has been general improvement in economic conditions, concerns continue to exist about the strength and sustainability of such improvements; the slowly strengthening housing market; the troubled state of financial and credit markets; Federal Reserve positioning of monetary policy; high levels of unemployment; and continued stagnant population growth in the upstate New York and central Pennsylvania regions (approximately 60% of the Company’s loans are to customers in New York State and Pennsylvania).

The Company utilizes a loan grading system which is applied to all commercial and commercial real estate loans. Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan. Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. Criticized commercial loans and commercial real estate loans were $1.8 billion at each of June 30, 2014, December 31, 2013 and March 31, 2014, and $2.1 billion at June 30, 2013. Loan officers with the support of loan review personnel in different geographic locations are responsible to continuously review and reassign loan grades to pass and

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criticized loans based on their detailed knowledge of individual borrowers and their judgment of the impact on such borrowers resulting from changing conditions in their respective geographic regions. On a quarterly basis, the Company’s centralized loan review department reviews all criticized commercial and commercial real estate loans greater than $1 million to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. For criticized nonaccrual loans, additional meetings are held with loan officers and their managers, workout specialists and senior management to discuss each of the relationships. In analyzing criticized loans, borrower-specific information is reviewed, including operating results, future cash flows, recent developments and the borrower’s outlook, and other pertinent data. The timing and extent of potential losses, considering collateral valuation and other factors, and the Company’s potential courses of action are reviewed. To the extent that these loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of classifying the loan as “criticized,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in value as determined by line of business and/or loan workout personnel in the respective geographic regions. Those adjustments are reviewed and assessed for reasonableness by the Company’s loan review department. Accordingly, for real estate collateral securing larger commercial and commercial real estate loans, estimated collateral values are based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs. With regard to residential real estate loans, the Company’s loss identification and estimation techniques make reference to loan performance and house price data in specific areas of the country where collateral that was securing the Company’s residential real estate loans was located. For residential real estate-related loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. That charge-off is based on recent indications of value from external parties that are generally obtained shortly after a loan becomes nonaccrual. At June 30, 2014, approximately 55% of the Company’s home equity portfolio consisted of first lien loans and lines of credit. Of the remaining junior lien loans in the portfolio, approximately 74% (or approximately 33% of the aggregate home equity portfolio) consisted of junior lien loans that were behind a first lien mortgage loan that was not owned or serviced by the Company. To the extent known by the Company, if a senior lien loan would be on nonaccrual status because of payment delinquency, even if such senior lien loan was not owned by the Company, the junior lien loan or line that is owned by the Company is placed on nonaccrual status. At June 30, 2014, the balance of junior lien loans and lines that were in nonaccrual status solely as a result of first lien loan performance was $29 million, compared with $28 million at June 30, 2013 and $30 million at each of December 31, 2013 and March 31, 2014. In monitoring the credit quality of its home equity portfolio for purposes of determining the allowance for credit losses, the Company reviews delinquency and nonaccrual information and considers recent charge-off experience. Additionally, the Company generally evaluates home equity loans and lines of credit that are more than 150 days past due for collectibility on a loan-by-loan basis and the excess of the loan

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balance over the net realizable value of the property collateralizing the loan is charged-off at that time. In determining the amount of such charge-offs, if the Company does not know the amount of the remaining first lien mortgage loan (typically because the Company does not own or service the first lien loan), the Company assumes that the first lien mortgage loan has had no principal amortization since the origination of the junior lien loan. Similarly, data used in estimating incurred losses for purposes of determining the allowance for credit losses also assumes no reductions in outstanding principal of first lien loans since the origination of the junior lien loan. Home equity line of credit terms vary but such lines are generally originated with an open draw period of ten years followed by an amortization period of up to twenty years. At June 30, 2014, approximately 94% of all outstanding balances of home equity lines of credit related to lines that were still in the draw period, the weighted-average remaining draw periods were approximately five years, and approximately 19% were making contractually allowed payments that do not include any repayment of principal.

Factors that influence the Company’s credit loss experience include overall economic conditions affecting businesses and consumers, generally, but also residential and commercial real estate valuations, in particular, given the size of the Company’s real estate loan portfolios. Commercial real estate valuations can be highly subjective, as they are based upon many assumptions. Such valuations can be significantly affected over relatively short periods of time by changes in business climate, economic conditions, interest rates and, in many cases, the results of operations of businesses and other occupants of the real property. Similarly, residential real estate valuations can be impacted by housing trends, the availability of financing at reasonable interest rates, and general economic conditions affecting consumers.

In determining the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and detailed or intensified credit review processes and also estimates losses inherent in other loans and leases. In quantifying incurred losses, the Company considers the factors and uses the techniques described herein and in note 4 of Notes to Financial Statements. For purposes of determining the level of the allowance for credit losses, the Company segments its loan and lease portfolio by loan type. The amount of specific loss components in the Company’s loan and lease portfolios is determined through a loan-by-loan analysis of commercial loans and commercial real estate loans in nonaccrual status. Measurement of the specific loss components is typically based on expected future cash flows, collateral values or other factors that may impact the borrower’s ability to pay. Losses associated with residential real estate loans and consumer loans are generally determined by reference to recent charge-off history and are evaluated (and adjusted if deemed appropriate) through consideration of other factors including near-term forecasted loss estimates developed by the Company’s credit department. These forecasts give consideration to overall borrower repayment performance and current geographic region changes in collateral values using third party published historical price indices or automated valuation methodologies. With regard to collateral values, the realizability of such values by the Company contemplates repayment of any first lien position prior to recovering amounts on a junior lien position. Approximately 45% of the Company’s home equity portfolio consists of junior lien loans and lines of credit. The Company generally evaluates residential real estate loans and home equity loans and lines of credit that are more than 150 days past due for collectibility on a loan-by-loan basis and the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off at that time. Except for consumer loans and residential real estate loans that are

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considered smaller balance homogeneous loans and are evaluated collectively and loans obtained in acquisition transactions, the Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more and has been placed in nonaccrual status. Those impaired loans are evaluated for specific loss components. Modified loans, including smaller balance homogenous loans, that are considered to be troubled debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows. Loans less than 90 days delinquent are deemed to have a minimal delay in payment and are generally not considered to be impaired. Loans acquired in connection with acquisition transactions subsequent to 2008 were recorded at fair value with no carry-over of any previously recorded allowance for credit losses. Determining the fair value of the acquired loans required estimating cash flows expected to be collected on the loans and discounting those cash flows at then-current interest rates. The impact of estimated future credit losses represents the predominant difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition. Subsequent decreases to those expected cash flows require the Company to evaluate the need for an additional allowance for credit losses and could lead to charge-offs of acquired loan balances. Additional information regarding the Company’s process for determining the allowance for credit losses is included in note 4 of Notes to Financial Statements.

Management believes that the allowance for credit losses at June 30, 2014 appropriately reflected credit losses inherent in the portfolio as of that date. The allowance for credit losses was $918 million, or 1.42% of total loans and leases at June 30, 2014, compared with $927 million or 1.41% at June 30, 2013 and $917 million or 1.43% at each of December 31, 2013 and March 31, 2014. The ratio of the allowance to total loans and leases at each respective date reflects the impact of loans obtained in acquisition transactions subsequent to 2008 that have been recorded at estimated fair value based on estimated future cash flows expected to be received on those loans. Those cash flows reflect the impact of expected defaults on customer repayment performance. As noted earlier, GAAP prohibits any carry-over of an allowance for credit losses for acquired loans recorded at fair value. The level of the allowance reflects management’s evaluation of the loan and lease portfolio using the methodology and considering the factors as described herein. Should the various credit factors considered by management in establishing the allowance for credit losses change and should management’s assessment of losses inherent in the loan portfolio also change, the level of the allowance as a percentage of loans could increase or decrease in future periods. The ratio of the allowance for credit losses to nonaccrual loans was 104% at June 30, 2014, compared with 96% a year earlier, 105% at December 31, 2013 and 103% at March 31, 2014. Given the Company’s general position as a secured lender and its practice of charging off loan balances when collection is deemed doubtful, that ratio and changes in that ratio are generally not an indicative measure of the adequacy of the Company’s allowance for credit losses, nor does management rely upon that ratio in determining the allowance. The level of the allowance reflects management’s evaluation of the loan and lease portfolio as of each respective date.

Other Income

Other income totaled $456 million in the second quarter of 2014, compared with $509 million in the year-earlier quarter and $420 million in the first quarter of 2014. Reflected in the second quarter of 2013 amount were net gains on investment securities of $56 million. During that quarter, the

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Company sold privately issued mortgage-backed securities held in its available-for-sale portfolio having an amortized cost of approximately $1.0 billion, resulting in a net pre-tax loss of $46 million. The Company sold the privately issued mortgage-backed securities in order to improve its regulatory capital and liquidity position through reduced exposure to such relatively higher risk, less liquid, securities in favor of lower risk, highly liquid, Ginnie Mae securities. Also in 2013’s second quarter, the Company realized a $103 million pre-tax gain from the sale of its holdings of Visa and MasterCard common stock that it had received at no cost as part of the restructuring of those companies several years earlier. There were no realized gains and losses from sales of investment securities in the three-month periods ended March 31 and June 30, 2014.

Excluding gains and losses on bank investment securities (including other-than-temporary impairment losses) in the second 2013 quarter, other income totaled $456 million in the second quarter of 2014, compared with $452 million in 2013’s second quarter and $420 million in the first quarter of 2014. Higher mortgage banking revenues and trust income in the recent quarter contributed to those improvements.

Mortgage banking revenues were $96 million in the recently completed quarter, up from $91 million in the second quarter of 2013 and $80 million in the initial 2014 quarter. Mortgage banking revenues are comprised of both residential and commercial mortgage banking activities. The Company’s involvement in commercial mortgage banking activities includes the origination, sales and servicing of loans under the multifamily loan programs of Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development.

Residential mortgage banking revenues, consisting of realized gains from sales of residential real estate loans and loan servicing rights, unrealized gains and losses on residential real estate loans held for sale and related commitments, residential real estate loan servicing fees, and other residential real estate loan-related fees and income, were $78 million in the second quarter of 2014, compared with $66 million in the second quarter of 2013 and $65 million in the initial quarter of 2014. The higher level of residential mortgage banking revenues in the recent quarter as compared with the year-earlier quarter resulted predominantly from increased revenues for servicing residential real estate loans for others, partially offset by lower volumes of loans originated for sale. As compared with the first quarter of 2014, the recent quarter’s higher residential mortgage banking revenues reflect increased volumes of loans originated for sale as well as the sale of re-performing government guaranteed loans. Loans originated for sale include the impact of the Company’s involvement in the U.S. Government’s Home Affordable Refinance Program (“HARP 2.0”), which allows homeowners to refinance their Fannie Mae or Freddie Mac mortgages when the value of their home has fallen such that they have little or no equity. The HARP 2.0 program was set to expire December 31, 2013, but was extended and will now be available to borrowers through December 31, 2015. Nevertheless, volumes associated with the HARP 2.0 refinancing program have declined since 2013.

New commitments to originate residential real estate loans to be sold were approximately $905 million in the recent quarter, compared with $1.8 billion and $728 million in the second quarter of 2013 and the first quarter of 2014, respectively. Included in those commitments to originate residential real estate loans to be sold were HARP 2.0 commitments of $69 million, $375 million and $95 million during the quarters ended June 30,

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2014, June 30, 2013 and March 31, 2014, respectively. Realized gains from sales of residential real estate loans and loan servicing rights and recognized net unrealized gains or losses attributable to residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans totaled to a gain of $27 million in the recently completed quarter, compared with gains of $40 million in the second quarter of 2013 and $15 million in the first quarter of 2014.

The Company is contractually obligated to repurchase previously sold loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues for losses related to its obligations to loan purchasers. The amount of those charges varies based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. Residential mortgage banking revenues were reduced by approximately $3 million during the three-month period ended June 30, 2014, compared with similar reductions of $5 million during the three-month period ended June 30, 2013 and less than $1 million in the three-month period ended March 31, 2014.

Loans held for sale that are secured by residential real estate totaled $419 million at June 30, 2014, $1.9 billion at June 30, 2013 and $401 million at December 31, 2013. Commitments to sell residential real estate loans and commitments to originate residential real estate loans for sale at pre-determined rates were $799 million and $597 million, respectively, at June 30, 2014, $2.6 billion and $896 million, respectively, at June 30, 2013, and $725 million and $470 million, respectively, at December 31, 2013. Net recognized unrealized gains on residential real estate loans held for sale, commitments to sell loans, and commitments to originate loans for sale were $20 million at each of June 30, 2014 and December 31, 2013, and $45 million at June 30, 2013. Changes in such net unrealized gains are recorded in mortgage banking revenues and resulted in net increases in revenues of $3 million in the recent quarter, compared with net decreases in revenues of $12 million in the second quarter of 2013 and $2 million in the initial quarter of 2014.

Revenues from servicing residential real estate loans for others were $51 million in the recent quarter, compared with $25 million and $50 million during the quarters ended June 30, 2013 and March 31, 2014, respectively. Residential real estate loans serviced for others totaled $71.0 billion at June 30, 2014, compared with $35.9 billion at June 30, 2013, $72.4 billion at December 31, 2013 and $73.0 billion at March 31, 2014, including certain small balance commercial real estate loans of $3.0 billion at June 30, 2014, $3.6 billion at June 30, 2013, $3.2 billion at December 31, 2013 and $3.1 billion at March 31, 2014. Reflected in residential real estate loans serviced for others were loans sub-serviced for others of $45.5 billion at June 30, 2014, $11.5 billion at June 30, 2013, $46.6 billion at December 31, 2013 and $47.4 billion at March 31, 2014. Included in residential real estate loans sub-serviced for others were loans sub-serviced for affiliates of Bayview Lending Group LLC (“BLG”) of $44.6 billion, $10.4 billion, $45.6 billion and $46.5 billion at June 30, 2014, June 30, 2013, December 31, 2013 and March 31, 2014, respectively. During the third quarter of 2013, the Company added approximately $35 billion of residential real estate loans to its portfolio of loans sub-serviced for affiliates of BLG. Revenues earned for sub-servicing loans were $27 million and $3 million for the three-month periods ended June 30, 2014 and 2013, respectively, and $26 million for the three-month period ended March 31, 2014.

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Capitalized servicing rights consist largely of servicing associated with loans sold by the Company. Capitalized residential mortgage loan servicing assets, net of any applicable valuation allowance for possible impairment, totaled $117 million at June 30, 2014, compared with $118 million a year earlier, $129 million at December 31, 2013 and $123 million at March 31, 2014.

Commercial mortgage banking revenues were $18 million in the second quarter of 2014, compared with $25 million in the year-earlier period and $15 million in the first quarter of 2014. Included in such amounts were revenues from loan origination and sales activities of $9 million in the recent quarter, compared with $18 million and $7 million in the second quarter of 2013 and the initial 2014 quarter, respectively. Commercial real estate loans originated for sale to other investors totaled $312 million in the second quarter of 2014, compared with $617 million and $136 million in the second quarter of 2013 and the initial 2014 quarter, respectively. Loan servicing revenues were $9 million in the second quarter of 2014, up from $7 million in 2013’s second quarter and $8 million in the first quarter of 2014. Capitalized commercial mortgage servicing assets totaled $69 million and $65 million at June 30, 2014 and 2013, respectively, and $72 million at December 31, 2013. Commercial real estate loans serviced for other investors totaled $11.1 billion, $11.2 billion and $11.4 billion at June 30, 2014, June 30, 2013 and December 31, 2013, respectively, and included $2.3 billion, $2.1 billion and $2.3 billion, respectively, of loan balances for which investors had recourse to the Company if such balances are ultimately uncollectible. Commitments to sell commercial real estate loans and commitments to originate commercial real estate loans for sale were $455 million and $251 million, respectively, at June 30, 2014, $380 million and $247 million, respectively, at June 30, 2013 and $130 million and $62 million, respectively, at December 31, 2013. Commercial real estate loans held for sale at June 30, 2014, June 30, 2013 and December 31, 2013 were $205 million, $133 million and $68 million, respectively.

Service charges on deposit accounts totaled $107 million in the second quarter of 2014, compared with $112 million and $104 million in the second quarter of 2013 and the first quarter of 2014, respectively. The lower level of fees in the two most recent quarters as compared with the second quarter of 2013 was largely due to lower consumer deposit service fees. Trust income includes fees related to two significant businesses. The Institutional Client Services (“ICS”) business provides a variety of trustee, agency, investment management and administrative services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients who: (i) use capital markets financing structures; (ii) use independent trustees to hold retirement plan and other assets; and (iii) need investment and cash management services. The Wealth Advisory Services (“WAS”) business helps high net worth clients grow their wealth, protect it, and transfer it to their heirs. A comprehensive array of wealth management services are offered, including asset management, fiduciary services and family office services. Revenues associated with the ICS business were approximately $61 million, $60 million and $57 million during the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014, respectively. Revenues attributable to WAS were approximately $60 million, $56 million and $53 million for the three-month periods ended June 30, 2014, June 30, 2013, and March 31, 2014, respectively. In total, trust income aggregated $130 million in the second quarter of 2014, compared with $125 million and $121 million in the year-earlier quarter and the first quarter of 2014, respectively. Total trust assets, which include assets under management and assets under

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administration, aggregated $275.5 billion at June 30, 2014, compared with $249.7 billion and $266.1 billion at June 30, 2013 and December 31, 2013, respectively. Trust assets under management were $66.9 billion at June 30, 2014, $61.5 billion at June 30, 2013 and $65.1 billion at December 31, 2013. The Company’s proprietary mutual funds had assets of $12.3 billion at June 30, 2014 and $12.7 billion at each of June 30, 2013 and December 31, 2013, respectively.

Brokerage services income, which includes revenues from the sale of mutual funds and annuities and securities brokerage fees, totaled $17 million in each of the three-month periods ended June 30, 2014, June 30, 2013 and March 31, 2014. Gains from trading account and foreign exchange activity totaled $8 million during the second quarter of 2014 compared with $9 million and $6 million in the second quarter of 2013 and the initial 2014 quarter, respectively. Information about the notional amount of interest rate, foreign exchange and other contracts entered into by the Company for trading account purposes is included in note 10 of Notes to Financial Statements and herein under the heading “Taxable-equivalent Net Interest Income.”

During the second quarter of 2013, the Company recognized net gains on investment securities of $56 million. During that quarter, the Company sold its holdings of Visa Class B shares for a gain of $90 million and its holdings of MasterCard Class B shares for a gain of $13 million. The shares of Visa and MasterCard were sold as a result of favorable market conditions and to enhance the Company’s capital and liquidity. In addition, the Company sold substantially all of its privately issued mortgage-backed securities held in the available-for-sale investment securities portfolio. In total, $1.0 billion of such securities were sold for a net loss of approximately $46 million. The mortgage-backed securities were sold to reduce the Company’s exposure to such relatively higher risk securities in favor of lower risk Ginnie Mae securities in response to changing regulatory capital and liquidity standards. There were no net gains or losses on investment securities in the two most recent quarters.

M&T’s share of the operating results of BLG in each of the two most recent quarters was a loss of $4 million, compared with a loss of $2 million in the second quarter of 2013. The operating losses of BLG in the respective quarters reflect provisions for losses associated with securitized loans and other loans held by BLG and loan servicing and other administrative costs. Under GAAP, such losses are required to be recognized by BLG despite the fact that many of the securitized loan losses will ultimately be borne by the underlying third party bond-holders. As these loan losses are realized through later foreclosure and still later sale of real estate collateral, the underlying bonds will be charged-down leading to BLG’s future recognition of debt extinguishment gains. The timing of such debt extinguishment is difficult to predict and given ongoing loan loss provisioning, it is not possible to project when BLG will return to profitability. As a result of credit and liquidity disruptions, BLG ceased its originations of small-balance commercial real estate loans in 2008. However, as a result of past securitization activities, BLG is entitled to cash flows from mortgage assets that it owns or that are owned by its affiliates and is also entitled to receive distributions from affiliates that provide asset management and other services. Accordingly, the Company believes that BLG is capable of realizing positive cash flows that could be available for distribution to its owners, including M&T, despite a lack of positive GAAP-earnings from its core mortgage activities. To this point, BLG’s affiliates have largely reinvested their earnings to generate additional servicing and asset management activities, further contributing to the value of those affiliates.

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Information about the Company’s relationship with BLG and its affiliates is included in note 15 of Notes to Financial Statements.

Other revenues from operations totaled $102 million in the recent quarter, compared with $100 million in the second quarter of 2013 and $96 million in the first quarter of 2014. Included in other revenues from operations were the following significant components. Letter of credit and other credit-related fees totaled $35 million in the second quarter of 2014, $31 million in the second quarter of 2013 and $32 million in the first quarter of 2014. Tax-exempt income from bank owned life insurance, which includes increases in the cash surrender value of life insurance policies and benefits received, totaled $13 million in the second quarter of 2014, $18 million in the year-earlier quarter and $12 million in the first quarter of 2014. Revenues from merchant discount and credit card fees were $24 million, $21 million and $22 million in the three-month periods ended June 30, 2014, June 30, 2013 and March 31, 2014, respectively. Insurance-related sales commissions and other revenues totaled $11 million in the second quarter of 2014, $10 million in the year-earlier quarter and $12 million in the initial 2014 quarter.

Other income totaled $877 million in the first half of 2014, compared with $942 million in the year-earlier period. Gains and losses on bank investment securities (including other-than-temporary impairment losses) totaled to net gains of $47 million in 2013. There were no gains or losses on investment securities in 2014. Excluding gains and losses from bank investment securities, other income aggregated $895 million in the first half of 2013. The primary contributors to the decline in other income during the 2014 period were lower mortgage banking revenues and service charges on deposit accounts.

Mortgage banking revenues were $176 million for the first half of 2014, compared with $184 million in the year-earlier period. Residential mortgage banking revenues totaled $143 million in the first six months of 2014, compared with $141 million in the first half of 2013. New commitments to originate residential real estate loans to be sold were $1.6 billion and $3.7 billion during the first six months of 2014 and 2013, respectively. As a result, realized gains from sales of residential real estate loans and loan servicing rights (net of the impact of costs associated with obligations to repurchase real estate loans originated for sale) and recognized unrealized gains and losses on residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans totaled to gains of $42 million and $91 million during the first six months of 2014 and 2013, respectively. Residential mortgage banking revenues during the six-month periods ended June 30, 2014 and 2013 were reduced by $3 million and $10 million, respectively, related to actual or anticipated settlements of repurchase obligations. Revenues from servicing residential mortgage loans for others were $101 million and $51 million for the first half of 2014 and 2013, respectively. That increase was largely attributable to increased sub-servicing revenues that totaled $53 million and $5 million in the 2014 and 2013 periods, respectively. Commercial mortgage banking revenues totaled $33 million and $43 million during the six-month periods ended June 30, 2014 and 2013, respectively. That decline resulted largely from lower origination activity. Commercial real estate loans originated for sale to other investors were $448 million in the first half of 2014, compared with $1.0 billion in the comparable 2013 period.

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Service charges on deposit accounts totaled $212 million and $223 million during the six-month periods ended June 30, 2014 and 2013, respectively. That decline resulted from lower consumer service charges, largely overdraft fees. Trust income aggregated $251 million in the first half of 2014, up 2% from $246 million a year earlier. Brokerage services income totaled $34 million during the first six months of 2014, compared with $33 million in the corresponding 2013 period. Trading account and foreign exchange activity resulted in gains of $14 million and $18 million for the six-month periods ended June 30, 2014 and 2013, respectively. M&T’s investment in BLG resulted in losses of $9 million and $6 million for the first half of 2014 and 2013, respectively. Investment securities gains and losses totaled to net gains of $47 million for the first six months of 2013. Reflected in that amount were other-than-temporary impairment losses of $10 million. Those losses related to a subset of the privately issued mortgage-backed securities that were sold in the second quarter of 2013. There were no gains or losses on investment securities in 2014.

Other revenues from operations were $198 million in the first half of 2014 and $197 million in the similar 2013 period. Included in other revenues from operations during the six-month periods ended June 30, 2014 and 2013 were the following significant components: letter of credit and other credit-related fees of $67 million and $63 million, respectively; income from bank owned life insurance of $25 million and $31 million, respectively; merchant discount and credit card fees of $45 million and $41 million, respectively; and insurance-related sales commissions and other revenues of $22 million and $23 million, respectively.

Other Expense

Other expense totaled $681 million in the second quarter of 2014, up 14% from $599 million in the year-earlier quarter, but 3% less than $702 million in the first quarter of 2014. Included in those amounts are expenses considered by management to be “nonoperating” in nature consisting of amortization of core deposit and other intangible assets of $9 million in the second quarter of 2014, $13 million in the year-earlier quarter and $10 million in the first quarter of 2014, and merger-related expenses of $8 million in the three-month period ended June 30, 2013. There were no merger-related expenses in the 2014 periods. The merger-related expenses in the second quarter of 2013 were incurred in connection with the pending Hudson City acquisition. Those expenses consisted largely of professional services and other temporary help fees associated with the planned conversion of systems and/or integration of operations; initial marketing and promotion expenses designed to introduce M&T Bank to its new customers; travel costs; and printing, postage, supplies and other costs. Exclusive of these nonoperating expenses, noninterest operating expenses totaled $672 million in the recent quarter, compared with $578 million in the second quarter of 2013 and $692 million in the first quarter of 2014. The higher level of such expenses in the recent quarter as compared with the year-earlier period was predominantly the result of costs for professional services and salaries associated with BSA/AML activities, compliance, capital planning and stress testing, risk management, and other operational initiatives, and the $12 million accrual for litigation-related costs. In addition, during the second quarter of 2013 the Company reversed a $26 million accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust that expired and was no longer payable. As compared with the first quarter of 2014, the recent quarter’s decline in noninterest operating expenses was due, in large part, to lower personnel costs, as the initial quarter of 2014 reflected seasonally higher stock-based compensation, unemployment insurance, payroll-related taxes and benefits costs.

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Other expense for the first six months of 2014 aggregated $1.38 billion, up 12% from $1.23 billion in the year-earlier period. Included in those amounts are expenses considered to be “nonoperating” in nature consisting of amortization of core deposit and other intangible assets of $19 million and $26 million in the six-month periods ended June 30, 2014 and 2013, respectively, and merger-related expenses of $12 million in 2013. Exclusive of these nonoperating expenses, noninterest operating expenses for the first half of 2014 increased 14% to $1.36 billion from $1.20 billion in the first six months of 2013. The most significant factors contributing to that increase were higher costs for professional services and salaries associated with the BSA/AML activities, compliance, capital planning and stress testing, risk management, and other operational initiatives, and the reversal in the second quarter of 2013 of the contingent compensation obligation that expired. Table 2 provides a reconciliation of other expense to noninterest operating expense.

Salaries and employee benefits expense totaled $340 million in the recent quarter, compared with $323 million in the second quarter of 2013 and $371 million in the initial 2014 quarter. During the first six months of 2014 and 2013, salaries and employee benefits expense aggregated $711 million and $680 million, respectively. Such expense included stock-based compensation of $12 million, $9 million and $30 million during the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014, and $42 million and $38 million for the six-month periods ended June 30, 2014 and 2013, respectively. The higher expense level in 2014’s initial quarter reflects the accelerated recognition of compensation costs for stock-based awards granted to retirement-eligible employees during that quarter. The number of full-time equivalent employees was 15,387 at June 30, 2014, 14,885 at June 30, 2013, 15,368 at December 31, 2013 and 15,316 at March 31, 2014.

Excluding the nonoperating expense items described earlier from each period, nonpersonnel operating expenses were $332 million in the recent quarter, compared with $256 million in the second quarter of 2013 and $321 million in the first three months of 2014. On the same basis, such expenses were $653 million and $517 million during the first six months of 2014 and 2013, respectively. The increase in nonpersonnel operating expenses in the recent quarter as compared with the second quarter of 2013 was predominantly due to the higher professional services costs related to the initiatives already noted, and the expiration in the second 2013 quarter of the Wilmington Trust-related contingency. The recent quarter increase as compared with the initial quarter of 2014 reflects the accrued litigation-related expenses already noted. The rise in nonpersonnel operating expenses in the first half of 2014 as compared with the corresponding 2013 period was attributable to the higher professional services and litigation costs, as well as the impact of the reversal of the Wilmington Trust-related accrual in 2013.

The efficiency ratio, or noninterest operating expenses (as defined above) divided by the sum of taxable-equivalent net interest income and noninterest income (exclusive of gains and losses from bank investment securities), measures the relationship of noninterest operating expenses to revenues. The Company’s efficiency ratio was 59.4% during the recent quarter, compared with 50.9% during the year-earlier quarter and 63.9% in the first quarter of 2014. The efficiency ratios for the six-month periods ended June 30, 2014 and 2013 were 61.6% and 53.4%, respectively.

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Income Taxes

The provision for income taxes for the second quarter of 2014 was $130 million, compared with $182 million and $113 million in the year-earlier quarter and first quarter of 2014, respectively. The effective tax rates were 31.4%, 34.3% and 33.1% for the quarters ended June 30, 2014, June 30, 2013 and March 31, 2014, respectively. For the first six months of 2014 and 2013, the provision for income taxes totaled $243 million and $323 million, respectively, and the effective tax rates were 32.2% and 34.2%, respectively. During the second quarter of 2014, the Company resolved with tax authorities previously uncertain tax positions associated with pre-acquisition activities of M&T’s Wilmington Trust entities, resulting in a reduction of the provision for income taxes of $8 million. Excluding that reduction of income tax expense, the effective tax rates for the three months and six months ended June 30, 2014 would have been 33.3% and 33.2%, respectively. The effective tax rate is affected by the level of income earned that is exempt from tax relative to the overall level of pre-tax income, the level of income allocated to the various state and local jurisdictions where the Company operates, because tax rates differ among such jurisdictions, and the impact of any large but infrequently occurring items.

The Company’s effective tax rate in future periods will be affected by the results of operations allocated to the various tax jurisdictions within which the Company operates, any change in income tax laws or regulations within those jurisdictions, and interpretations of income tax regulations that differ from the Company’s interpretations by any of various tax authorities that may examine tax returns filed by M&T or any of its subsidiaries.

Capital

Shareholders’ equity was $12.2 billion at June 30, 2014, representing 13.40% of total assets, compared with $10.7 billion or 12.88% at June 30, 2013 and $11.3 billion or 13.28% at December 31, 2013.

Included in shareholders’ equity was preferred stock with financial statement carrying values of $1.2 billion at June 30, 2014, $877 million at June 30, 2013 and $882 million at December 31, 2013. On February 11, 2014, M&T issued 350,000 shares of Series E Perpetual Fixed-to-Floating Rate Non-Cumulative Preferred Stock, par value $1.00 per share and liquidation preference of $1,000 per share. Dividends, if declared, will be paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate plus 361 basis points. The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence. Further information concerning M&T preferred stock can be found in note 6 of Notes to Financial Statements.

Common shareholders’ equity was $10.9 billion, or $82.86 per share, at June 30, 2014, compared with $9.8 billion, or $75.98 per share at June 30, 2013 and $10.4 billion, or $79.81 per share at December 31, 2013. Tangible equity per common share, which excludes goodwill and core deposit and other intangible assets and applicable deferred tax balances, was $55.89 at June 30, 2014, compared with $48.26 a year earlier and $52.45 at December 31, 2013. The Company’s ratio of tangible common equity to tangible assets was 8.45% at June 30, 2014, compared with 7.85% and 8.39% at June 30, 2013 and December 31, 2013,

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respectively. Reconciliations of total common shareholders’ equity and tangible common equity and total assets and tangible assets as of each of those respective dates are presented in table 2.

Shareholders’ equity reflects accumulated other comprehensive income or loss, which includes the net after-tax impact of unrealized gains or losses on investment securities classified as available for sale, unrealized losses on held-to-maturity securities for which an other-than-temporary impairment charge has been recognized, gains or losses associated with interest rate swap agreements designated as cash flow hedges, foreign currency translation adjustments and adjustments to reflect the funded status of defined benefit pension and other postretirement plans. Net unrealized gains on investment securities, net of applicable tax effect, were $137 million, or $1.04 per common share, at June 30, 2014, compared with $40 million, or $.31 per common share, at June 30, 2013 and $34 million, or $.26 per common share, at December 31, 2013. Information about unrealized gains and losses as of June 30, 2014 and December 31, 2013 is included in note 3 of Notes to Financial Statements.

Reflected in net unrealized gains at June 30, 2014 were pre-tax effect unrealized losses of $18 million on available-for-sale investment securities with an amortized cost of $188 million and pre-tax effect unrealized gains of $273 million on securities with an amortized cost of $7.6 billion. The pre-tax effect unrealized losses reflect $16 million of losses on trust preferred securities issued by financial institutions having an amortized cost of $115 million and an estimated fair value of $99 million (generally considered Level 2 valuations). Further information concerning the Company’s valuations of available-for-sale investment securities is provided in note 12 of Notes to Financial Statements.

In the second quarter of 2013, the Company sold substantially all of its privately issued residential mortgage-backed securities that were classified as available for sale and recorded a pre-tax loss of $46 million. Those privately issued mortgage-backed securities previously held by the Company were generally collateralized by prime and Alt-A residential mortgage loans. The sales, which were in response to changing regulatory capital and liquidity standards, resulted in improved liquidity and regulatory capital ratios for the Company. Further information on the sales is provided in note 3 of Notes to Financial Statements.

The Company assesses impairment losses on privately issued mortgage-backed securities in the held-to-maturity portfolio by performing internal modeling to estimate bond-specific cash flows that reflect the placement of the bond in the overall securitization structure and the remaining subordination levels. As a result, the Company did not recognize any other-than-temporary impairment charge related to mortgage-backed securities in the held-to-maturity portfolio during the second quarter of 2014. In total, at June 30, 2014 and December 31, 2013, the Company had in its held-to-maturity portfolio privately issued mortgage-backed securities with an amortized cost basis of $210 million and $220 million, respectively, and a fair value of $159 million at each of those dates. At June 30, 2014, 90% of the mortgage-backed securities were in the most senior tranche of the securitization structure with 33% being independently rated as investment grade. The mortgage-backed securities had a weighted-average credit enhancement of 19% at June 30, 2014, calculated by dividing the remaining unpaid principal balance of bonds subordinate to the bonds owned by the Company plus any overcollateralization remaining in the securitization structure by the remaining unpaid principal balance of all bonds in the securitization structure. All mortgage-backed securities in the held-to-maturity portfolio had a current payment status as of June 30, 2014.

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As of June 30, 2014, based on a review of each of the remaining securities in the investment securities portfolio, the Company concluded that the declines in the values of any securities containing an unrealized loss were temporary and that any other-than-temporary impairment charges were not appropriate. It is possible that the Company may be required to sell certain of its collateralized debt obligations backed by trust preferred securities held in the available-for-sale portfolio to comply with the provisions of the Volcker Rule. However, the amortized cost and fair value of those collateralized debt obligations were $28 million and $38 million, respectively, at June 30, 2014 and the Company did not expect that it would realize any material losses if it ultimately was required to sell such securities. As of that date, the Company did not intend to sell nor is it anticipated that it would be required to sell any of its other impaired securities, that is, where fair value is less than the cost basis of the security. The Company intends to continue to closely monitor the performance of its securities because changes in their underlying credit performance or other events could cause the cost basis of those securities to become other-than-temporarily impaired. However, because the unrealized losses on available-for-sale investment securities have generally already been reflected in the financial statement values for investment securities and shareholders’ equity, any recognition of an other-than-temporary decline in value of those investment securities would not have a material effect on the Company’s consolidated financial condition. Any other-than-temporary impairment charge related to held-to-maturity securities would result in reductions in the financial statement values for investment securities and shareholders’ equity. Additional information concerning fair value measurements and the Company’s approach to the classification of such measurements is included in note 12 of the Notes to Financial Statements.

Adjustments to reflect the funded status of defined benefit pension and other postretirement plans, net of applicable tax effect, reduced accumulated other comprehensive income by $96 million or $.73 per common share, at June 30, 2014, $267 million, or $2.06 per common share, at June 30, 2013 and $98 million or $.75 per common share, at December 31, 2013.

Cash dividends declared on M&T’s common stock totaled approximately $93 million in the recent quarter, compared with $91 million and $92 million in the quarters ended June 30, 2013 and March 31, 2014, respectively, and represented a quarterly dividend of $.70 per common share in each of those quarters. Common stock dividends during the six-month periods ended June 30, 2014 and 2013 were $185 million and $182 million, respectively.

Cash dividends declared on preferred stock were as follows:

	1st Qtr.		2nd Qtr.		Year- to-date
	(in thousands)
Series A – 2014	$	3,666		3,666		7,332
Series A – 2013		2,875		2,875		5,750
Series C – 2014		2,414		2,414		4,828
Series C – 2013		1,894		1,894		3,788
Series D – 2014		8,594		8,593		17,187
Series D – 2013		8,594		8,593		17,187
Series E – 2014		—		5,770		5,770
Series E – 2013		—		—		—
Totals – 2014	$	14,674		20,443		35,117
Totals – 2013	$	13,363		13,362		26,725

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The Company did not repurchase any shares of its common stock during 2013 or the first half of 2014.

Federal regulators generally require banking institutions under the current Basel I rules to maintain “Tier 1 capital” and “total capital” ratios of at least 4% and 8%, respectively, of risk-adjusted total assets. In addition to the risk-based measures, Federal bank regulators have also implemented a minimum “leverage” ratio guideline of 3% of the quarterly average of total assets. As of June 30, 2014, Tier 1 capital included trust preferred securities of approximately $800 million as described in note 5 of Notes to Financial Statements and total capital further included subordinated capital notes of $1.3 billion. As previously noted, pursuant to the Dodd-Frank Act, trust preferred securities will be phased-out of the definition of Tier 1 capital of bank holding companies beginning in 2015. On February 27, 2014, M&T redeemed $350 million of 8.50% Enhanced Trust Preferred Securities and the associated junior subordinated debentures.

The regulatory capital ratios of the Company, M&T Bank and Wilmington Trust, N.A., as of June 30, 2014 are presented in the accompanying table.

REGULATORY CAPITAL RATIOS

June 30, 2014

	M&T (Consolidated)			M&T Bank			Wilmington Trust, N.A.
Tier 1 capital		12.36	%		10.25	%		67.19	%
Total capital		15.34	%		13.08	%		67.87	%
Tier 1 leverage		10.72	%		8.93	%		11.97	%

As described herein under the heading “Recent Legislative and Regulatory Developments,” in July 2013 the Federal Reserve adopted a final rule that revises risk-based and leverage capital requirements for banking organizations, including the Company.

Segment Information

As required by GAAP, the Company’s reportable segments have been determined based upon its internal profitability reporting system, which is organized by strategic business unit. Financial information about the Company’s segments is presented in note 14 of Notes to Financial Statements.

Net income earned by the Business Banking segment totaled $28 million in the recent quarter, representing a 9% decline from the $31 million recorded in the second quarter of 2013 and down 3% from $29 million earned in the three months ended March 31, 2014. The decline from the year-earlier period reflects lower net interest income of $3 million, an increase in the provision for credit losses of $2 million, and increased costs associated with the allocation of expenses related to BSA/AML compliance, risk management, and other operational initiatives across the Company. The lower net interest income reflects a 27 basis point narrowing of the net interest margin on deposits offset, in part, by increases in average outstanding deposit (predominantly noninterest-bearing) and loan balances of $378 million and $256 million, respectively. As compared with the initial 2014 quarter, the lower net income in the recent quarter was largely attributable to a $3 million increase in the provision for credit losses, the result of higher net charge-offs, partially offset by increases of $1 million in each of net interest income and merchant and credit card fees. The Business Banking segment’s net contribution aggregated $56 million in the first six months of 2014, 11% lower than the $63 million earned in the year-earlier period. That

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decline resulted from lower net interest income of $5 million and increased costs associated with the allocation of expenses related to BSA/AML compliance, risk management, and other operational initiatives. The decrease in net interest income resulted from a 30 basis point narrowing of the net interest margin on deposits offset, in part, by increases in average outstanding deposit (predominantly noninterest-bearing) and loan balances of $377 million and $276 million, respectively.

The Commercial Banking segment recorded net income of $105 million during the quarter ended June 30, 2014, 21% higher than the $87 million earned in the year-earlier quarter and 6% above the $100 million earned in the first quarter of 2014. The recent quarter’s rise in net income as compared with 2013’s second quarter was largely due to a $34 million decrease in the provision for credit losses, reflecting lower net charge-offs, and a $4 million increase in letter of credit and other credit-related fees. Those favorable factors were partially offset by lower net interest income of $8 million, resulting from the narrowing of the net interest margin on deposits and loans of 29 basis points and 14 basis points, respectively, partially offset by higher average outstanding loan and deposit balances of $1.3 billion and $313 million, respectively. The higher net charge-offs recorded in the second quarter of 2013 resulted from $30 million of loans charged-off for a relationship with a motor vehicle-related parts wholesaler. Contributing to the improved recent quarter performance as compared with the first quarter of 2014 was a $9 million decrease in the provision for credit losses, the result of lower net charge-offs, and a $4 million increase in letter of credit and other credit-related loan fees, offset, in part by lower net interest income of $2 million. The decline in net interest income was attributable to an 8 basis point narrowing of the net interest margin on loans and a decrease in average outstanding deposit balances of $343 million, offset, in part, by a $392 million increase in average outstanding loan balances. Net income recorded by the Commercial Banking segment totaled $205 million for the first half of 2014, 5% above the $195 million earned in the similar 2013 period. That improvement was predominantly due to a $22 million decrease in the provision for credit losses resulting from the charge-offs related to the motor vehicle-related parts wholesaler, partially offset by a $10 million decline in net interest income. The lower net interest income reflects a narrowing of the net interest margin on deposits and loans of 30 basis points and 8 basis points, respectively, partially offset by higher average outstanding loan and deposit balances of $1.3 billion and $520 million, respectively.

The Commercial Real Estate segment contributed net income of $78 million during the second quarter of 2014, compared with $90 million in the year-earlier quarter and $75 million in the initial 2014 quarter. The decrease in net income as compared with the second quarter of 2013 was largely due to a $16 million decline in net interest income, resulting from the narrowing of the net interest margin on deposits and loans of 38 basis points and 26 basis points, respectively, and a $7 million decrease in mortgage banking revenues, the result of lower volumes of real estate loans originated for sale. The main contributing factor to the recent quarter’s increase in net income as compared with 2014’s first quarter was a $3 million increase in mortgage banking revenues, the result of increased volumes of real estate loans originated for sale. Net income for the Commercial Real Estate segment was $152 million and $166 million for the first six months of 2014 and 2013, respectively. That lower net income was attributable to a $19 million decline in net interest income, resulting from the narrowing of the net interest margin on deposits and loans of 39 basis points and 13 basis points, respectively, and a $10 million decrease in mortgage banking revenues, the result of lower volumes of real estate loans originated for sale.

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The Discretionary Portfolio segment recorded net income of $15 million in the 2014’s second quarter, compared with a net loss of $8 million in the year-earlier quarter and net income of $11 million in the first quarter of 2014. The improved performance from the year-earlier period was predominantly attributable to net pre-tax losses of $46 million from the sale in the second quarter of 2013 of approximately $1.0 billion of privately issued mortgage-backed securities that were held in the available-for-sale investment portfolio, partially offset by a $5 million decline in revenues from bank owned life insurance. The recent quarter’s higher net income as compared with the first quarter of 2014 was largely due to a $4 million increase in net interest income that reflected a $1.7 billion increase in average investment securities balances. Net income for the Discretionary Portfolio segment in the first six months of 2014 totaled $26 million, compared with a net loss of $6 million in the corresponding 2013 period. Adjusted to exclude the impact of the securities losses noted above and pre-tax other-than-temporary impairment charges (relating to certain privately issued mortgage-backed securities) of $10 million, this segment recorded net income of $27 million in the first half of 2013. The relatively unchanged results, on an adjusted basis, reflected an $8 million decrease in intersegment costs, due to a lower amount of residential real estate loans being acquired from the Residential Mortgage Banking segment and a $4 million increase in net interest income, partially offset by a $7 million decline in bank owned life insurance revenues. The improved net interest income was largely the result of a $3.1 billion increase in average earning assets.

Net income from the Residential Mortgage Banking segment totaled $28 million in the recent quarter, down 19% from $34 million in the year-earlier quarter, but 43% higher than the $19 million recorded in the first quarter of 2014. The following unfavorable factors were the main contributors to the recent quarter’s decline as compared with the year-earlier quarter: a $19 million decrease in revenues from residential mortgage origination and sales activities (including intersegment revenues), due to lower origination volumes; a $9 million increase in the provision for credit losses, as the second quarter 2013 reflected a recovery of a previously charged-off loan to a residential real estate builder and developer of $9 million; and increased costs associated with the allocation of expenses related to BSA/AML compliance, risk management, and other operational initiatives across the Company. Those unfavorable factors were offset, in part, by a $24 million increase in revenues from servicing residential real estate loans, predominantly the result of increased sub-servicing activities. The recent quarter’s improved performance as compared with the first quarter of 2014 reflected higher gains from originations and sales of loans and a $4 million increase in net interest income, resulting from a 49 basis point widening of the net interest margin on loans and a $208 million increase in the average outstanding deposit balances. Year-to-date net income for this segment totaled $47 million in 2014 and $69 million in 2013. The year-over-year decline was attributable to the following factors: a $58 million decrease in loan origination and sales revenues (including intersegment revenues) due to lower origination volumes; an $8 million increase in the provision for credit losses, as the year-earlier period included a $9 million recovery from a loan to a residential real estate builder and developer; and increased costs related to the allocation of expenses for BSA/AML compliance, risk management, and other operational initiatives. Partially offsetting those unfavorable factors was a $47 million rise in revenues from servicing residential real estate loans predominantly the result of the increased sub-servicing activities.

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Net income of the Retail Banking segment totaled $32 million for the three-month period ended June 30, 2014, down 38% from the $52 million in the second quarter of 2013, but 8% higher than the $30 million earned in the first quarter of 2014. The most significant factors contributing to the recent quarter’s decline in net income as compared with the year-earlier quarter included: a $22 million decline in net interest income, reflecting a 23 basis point narrowing of the net interest margin on deposits and a decrease in average outstanding loans of $1.0 billion, offset, in part, by a 14 basis point widening of the net interest margin on loans; a $5 million reduction in fees earned for providing deposit account services, primarily due to lower volumes of consumer service charges; and higher noninterest operating expenses, including allocated costs related to BSA/AML compliance, risk management and other operational initiatives. The recent quarter’s favorable performance as compared with the immediate preceding quarter was predominantly due to a $4 million increase in service charges on deposit accounts, largely due to higher overdraft fees. Year-to-date net income for this segment totaled $62 million in 2014 and $104 million in 2013. The year-over-year decrease in net income was attributable to the following factors: a $47 million decrease in net interest income, reflecting a 25 basis point narrowing of the net interest margin on deposits and a $1.1 billion decrease in the average outstanding loans balances, partially offset by a 16 basis point widening of the net interest margin on loans; a $12 million reduction in fees earned for providing deposit account services; and higher noninterest operating expenses related to the Company-wide operational initiatives.

The “All Other” category reflects other activities of the Company that are not directly attributable to the reported segments. Reflected in this category are the amortization of core deposit and other intangible assets resulting from the acquisitions of financial institutions, M&T’s share of the operating losses of BLG, merger-related gains and expenses resulting from acquisitions of financial institutions, and the net impact of the Company’s allocation methodologies for internal transfers for funding charges and credits associated with the earning assets and interest-bearing liabilities of the Company’s reportable segments and the provision for credit losses. The “All Other” category also includes the trust activities of the Company. The various components of the “All Other” category resulted in net losses of $1 million and $34 million for the three months ended June 30, 2014 and March 31, 2014, respectively, and net income of $63 million for the three months ended June 30, 2013. The decline in net income in the recent quarter from the year-earlier period reflects the notable items in the second quarter of 2013 consisting of realized gains from the sale of Visa and MasterCard common stock of $103 million and the $26 million reversal of an accrual for a contingent compensation obligation assumed in the May 2011 acquisition of Wilmington Trust. These items were partially offset by the favorable impact from the Company’s allocation methodologies for internal transfers for funding charges and credits associated with earning assets and interest-bearing liabilities of the Company’s reportable segments. The most significant factors contributing to the lower net loss in the recent quarter in comparison to the first quarter of 2014 were: a $33 million decline in personnel costs, largely related to seasonally higher stock-based compensation, payroll-related taxes and employer contributions for retirement savings plans recorded in the first quarter of 2014; a $9 million increase in trust income due to new business and seasonal tax preparation fees; and the $8 million reversal of an income tax accrual following resolution with tax authorities of previously uncertain tax positions. The “All Other” category had a net loss of $35 million for the first six months of 2014, compared with net income of $32 million in the year earlier period. The 2013 period’s results included the noted securities gains and the reversal of the contingent compensation obligation that added approximately $78 million to net income in 2013’s first half.

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Recent Accounting Developments

In August 2014, the Financial Accounting Standards Board (“FASB”) issued amended accounting guidance for the measurement of the financial assets and financial liabilities of a consolidated collateralized financing entity. This guidance provides a measurement alternative permitting a reporting entity to use the more observable of the fair value of the financial assets and the fair value of the financial liabilities of a collateralized financing entity to measure both. If elected, the measurement alternative would eliminate measurement differences that exist when both financial assets and financial liabilities are measured at fair value under pre-existing generally accepted accounting principles. The measurement alternative will be available to reporting entities that are required to consolidate a collateralized financing entity under the variable interest entity guidance when (a) the reporting entity measures all of the financial assets and the financial liabilities of that collateralized financing entity at fair value in the consolidated financial statements and (b) the changes in the fair values of those financial assets and financial liabilities are reflected in earnings. If a reporting entity does not elect the measurement alternative for a consolidated collateralized financing entity that meets the scope of this guidance, the financial assets and the financial liabilities of the consolidated collateralized financing entity should be measured using the pre-existing fair value measurement guidance and any differences in the fair value of the financial assets and the fair value of the financial liabilities should be reflected in earnings and attributed to the reporting entity in the consolidated statement of income. A reporting entity that consolidates a collateralized financing entity that does not meet the scope requirements of this amendment because the fair value option was not elected to measure the eligible financial assets, financial liabilities, or both of the collateralized financing entity when it was initially consolidated, may elect at the date of adoption to apply the measurement alternative to those financial assets and financial liabilities or to continue using the guidance in pre-existing generally accepted accounting principles to measure the financial assets and the financial liabilities of the consolidated collateralized financing entity. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015 and should be applied using a modified retrospective method approach by recording a cumulative-effect adjustment to equity as of the beginning of the annual period of adoption. A reporting entity also may apply the amendments retrospectively to all relevant prior periods beginning with the annual period in which the amendments were initially adopted. The Company is still evaluating the impact the guidance could have on its consolidated financial statements.

In June 2014, the FASB issued amended accounting guidance for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The amended guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite

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service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 31, 2015, with earlier adoption permitted. The Company does not expect the amended guidance published by the FASB to have a material impact on its financial position or results of operations.

In June 2014, the FASB issued amended accounting guidance for repurchase-to-maturity transactions and repurchase financings. The amended guidance changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. Further, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments require new disclosures on transfers accounted for as sales in transactions that are economically similar to repurchase agreements and about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The accounting changes in this guidance are effective for the first interim or annual period beginning after December 15, 2014. Changes in accounting for transactions outstanding on the effective date should be presented as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The disclosure guidance for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure guidance for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The Company does not currently have repurchase-to-maturity transactions or transfers of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. The Company will make the required disclosures when the guidance becomes effective.

In May 2014, the FASB issued amended accounting and disclosure guidance for revenue from contracts with customers. The core principle of the accounting guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; (5) recognize revenue when (or as) the entity satisfies a performance obligation. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer. The amended disclosure guidance requires sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amended guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The guidance should be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this guidance recognized at the date of initial

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application. The Company is still evaluating the impact the guidance could have on its consolidated financial statements.

In January 2014, the FASB issued amended accounting and disclosure guidance for reclassification of residential real estate collateralized consumer mortgage loans upon foreclosure. The amended guidance clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amended guidance also requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This guidance should be applied using a prospective transition method or a modified retrospective transition method. The Company does not expect that the guidance will have a material impact on its financial position or results of operations.

In January 2014, the FASB issued amended accounting guidance permitting an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. The decision to apply the proportional amortization method of accounting is an accounting policy election that should be applied consistently to all qualifying affordable housing project investments. This guidance is effective for annual periods, and interim reporting periods within those annual periods, beginning after December 15, 2014. This guidance should be applied retrospectively to all periods presented. The Company is still evaluating the impact the guidance could have on its consolidated financial statements.

Forward-Looking Statements

Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of this quarterly report contain forward-looking statements that are based on current expectations, estimates and projections about the Company’s business, management’s beliefs and assumptions made by management. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “target,” “estimate,” “continue,” “positions,” “prospects” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” or “may,” or by variations of such words or by similar expressions. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions (“Future Factors”) which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Forward-looking statements speak only as of the date they are made and the Company assumes no duty to update forward-looking statements.

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Future Factors include changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values of loans, collateral securing loans and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on trust-related revenues; legislation and/or regulation affecting the financial services industry as a whole, and M&T and its subsidiaries individually or collectively, including tax legislation or regulation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the FASB or other regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of pending and future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support M&T and its subsidiaries’ future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with M&T’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements.

These are representative of the Future Factors that could affect the outcome of the forward-looking statements. In addition, such statements could be affected by general industry and market conditions and growth rates, general economic and political conditions, either nationally or in the states in which M&T and its subsidiaries do business, including interest rate and currency exchange rate fluctuations, changes and trends in the securities markets, and other Future Factors.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 1

QUARTERLY TRENDS

	2014 Quarters						2013 Quarters
	Second			First			Fourth			Third			Second			First
Earnings and dividends
Amounts in thousands, except per share
Interest income (taxable-equivalent basis)	$	740,139			728,897			740,665			748,791			756,424			736,425
Interest expense		65,176			66,519			67,982			69,578			72,620			73,925
Net interest income		674,963			662,378			672,683			679,213			683,804			662,500
Less: provision for credit losses		30,000			32,000			42,000			48,000			57,000			38,000
Other income		456,412			420,107			446,246			477,388			508,689			432,882
Less: other expense		681,194			702,271			743,072			658,626			598,591			635,596
Income before income taxes		420,181			348,214			333,857			449,975			536,902			421,786
Applicable income taxes		129,996			113,252			106,236			149,391			182,219			141,223
Taxable-equivalent adjustment		5,849			5,945			6,199			6,105			6,217			6,450
Net income	$	284,336			229,017			221,422			294,479			348,466			274,113
Net income available to common shareholders-diluted	$	260,695			211,731			203,451			275,356			328,557			255,096
Per common share data
Basic earnings	$	1.99			1.63			1.57			2.13			2.56			2.00
Diluted earnings		1.98			1.61			1.56			2.11			2.55			1.98
Cash dividends	$	.70			.70			.70			.70			.70			.70
Average common shares outstanding
Basic		130,856			130,212			129,497			129,171			128,252			127,669
Diluted		131,828			131,126			130,464			130,265			129,017			128,636
Performance ratios, annualized
Return on
Average assets		1.27	%		1.07	%		1.03	%		1.39	%		1.68	%		1.36	%
Average common shareholders’ equity		9.79	%		8.22	%		7.99	%		11.06	%		13.78	%		11.10	%
Net interest margin on average earning assets (taxable-equivalent basis)		3.40	%		3.52	%		3.56	%		3.61	%		3.71	%		3.71	%
Nonaccrual loans to total loans and leases, net of unearned discount		1.36	%		1.39	%		1.36	%		1.44	%		1.46	%		1.60	%
Net operating (tangible) results (a)
Net operating income (in thousands)	$	289,974			235,162			227,797			300,968			360,734			285,136
Diluted net operating income per common share		2.02			1.66			1.61			2.16			2.65			2.06
Annualized return on
Average tangible assets		1.35	%		1.15	%		1.11	%		1.48	%		1.81	%		1.48	%
Average tangible common shareholders’ equity		14.92	%		12.76	%		12.67	%		17.64	%		22.72	%		18.71	%
Efficiency ratio (b)		59.39	%		63.95	%		65.48	%		56.03	%		50.92	%		55.88	%
Balance sheet data
In millions, except per share
Average balances
Total assets (c)	$	89,873			86,665			85,330			84,011			83,352			81,913
Total tangible assets (c)		86,311			83,096			81,754			80,427			79,760			78,311
Earning assets		79,556			76,288			75,049			74,667			73,960			72,339
Investment securities		10,959			9,265			8,354			6,979			5,293			5,803
Loans and leases, net of unearned discount		64,343			63,763			63,550			64,858			65,979			65,852
Deposits		69,659			67,327			67,212			66,232			65,680			64,540
Common shareholders’ equity (c)		10,808			10,576			10,228			10,003			9,687			9,448
Tangible common shareholders’ equity (c)		7,246			7,007			6,652			6,419			6,095			5,846
At end of quarter
Total assets (c)	$	90,835			88,530			85,162			84,427			83,229			82,812
Total tangible assets (c)		87,276			84,965			81,589			80,847			79,641			79,215
Earning assets		80,062			77,950			74,706			74,085			73,927			73,543
Investment securities		12,120			10,364			8,796			8,310			5,211			5,661
Loans and leases, net of unearned discount		64,748			64,135			64,073			63,659			65,972			65,924
Deposits		69,829			68,699			67,119			66,552			65,661			65,090
Common shareholders’ equity, net of undeclared cumulative preferred dividends (c)		10,934			10,652			10,421			10,133			9,836			9,545
Tangible common shareholders’ equity (c)		7,375			7,087			6,848			6,553			6,248			5,948
Equity per common share		82.86			81.05			79.81			77.81			75.98			73.99
Tangible equity per common share		55.89			53.92			52.45			50.32			48.26			46.11
Market price per common share
High	$	125.90			123.04			117.29			119.54			112.01			105.90
Low		116.10			109.16			109.23			109.47			95.68			99.59
Closing		124.05			121.30			116.42			111.92			111.75			103.16

(a) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects. A reconciliation of net income and net operating income appears in Table 2.

(b) Excludes impact of merger-related gains and expenses and net securities transactions.

(c) The difference between total assets and total tangible assets, and common shareholders’ equity and tangible common shareholders’ equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances. A reconciliation of such balances appears in Table 2.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 2

RECONCILIATION OF QUARTERLY GAAP TO NON-GAAP MEASURES

	2014 Quarters						2013 Quarters
	Second			First			Fourth			Third			Second			First
Income statement data
In thousands, except per share
Net income
Net income	$	284,336			229,017			221,422			294,479			348,466			274,113
Amortization of core deposit and other intangible assets (a)		5,638			6,145			6,375			6,489			7,632			8,148
Merger-related expenses (a)		—			—			—			—			4,636			2,875
Net operating income	$	289,974			235,162			227,797			300,968			360,734			285,136
Earnings per common share
Diluted earnings per common share	$	1.98			1.61			1.56			2.11			2.55			1.98
Amortization of core deposit and other intangible assets (a)		.04			.05			.05			.05			.06			.06
Merger-related expenses (a)		—			—			—			—			.04			.02
Diluted net operating earnings per common share	$	2.02			1.66			1.61			2.16			2.65			2.06
Other expense
Other expense	$	681,194			702,271			743,072			658,626			598,591			635,596
Amortization of core deposit and other intangible assets		(9,234	)		(10,062	)		(10,439	)		(10,628	)		(12,502	)		(13,343	)
Merger-related expenses		—			—			—			—			(7,632	)		(4,732	)
Noninterest operating expense	$	671,960			692,209			732,633			647,998			578,457			617,521
Merger-related expenses
Salaries and employee benefits	$	—			—			—			—			300			536
Equipment and net occupancy		—			—			—			—			489			201
Printing, postage and supplies		—			—			—			—			998			827
Other costs of operations		—			—			—			—			5,845			3,168
Total	$	—			—			—			—			7,632			4,732
Efficiency ratio
Noninterest operating expense (numerator)	$	671,960			692,209			732,633			647,998			578,457			617,521
Taxable-equivalent net interest income		674,963			662,378			672,683			679,213			683,804			662,500
Other income		456,412			420,107			446,246			477,388			508,689			432,882
Less: Gain on bank investment securities		—			—			—			—			56,457			—
Net OTTI losses recognized in earnings		—			—			—			—			—			(9,800	)
Denominator	$	1,131,375			1,082,485			1,118,929			1,156,601			1,136,036			1,105,182
Efficiency ratio		59.39	%		63.95	%		65.48	%		56.03	%		50.92	%		55.88	%
Balance sheet data
In millions
Average assets
Average assets	$	89,873			86,665			85,330			84,011			83,352			81,913
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(53	)		(64	)		(74	)		(84	)		(95	)		(109	)
Deferred taxes		16			20			23			25			28			32
Average tangible assets	$	86,311			83,096			81,754			80,427			79,760			78,311
Average common equity
Average total equity	$	12,039			11,648			11,109			10,881			10,563			10,322
Preferred stock		(1,231	)		(1,072	)		(881	)		(878	)		(876	)		(874	)
Average common equity		10,808			10,576			10,228			10,003			9,687			9,448
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(53	)		(64	)		(74	)		(84	)		(95	)		(109	)
Deferred taxes		16			20			23			25			28			32
Average tangible common equity	$	7,246			7,007			6,652			6,419			6,095			5,846
At end of quarter
Total assets
Total assets	$	90,835			88,530			85,162			84,427			83,229			82,812
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(49	)		(59	)		(69	)		(79	)		(90	)		(102	)
Deferred taxes		15			19			21			24			27			30
Total tangible assets	$	87,276			84,965			81,589			80,847			79,641			79,215
Total common equity
Total equity	$	12,169			11,887			11,306			11,016			10,716			10,423
Preferred stock		(1,232	)		(1,232	)		(882	)		(879	)		(877	)		(875	)
Undeclared dividends—cumulative preferred stock		(3	)		(3	)		(3	)		(4	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		10,934			10,652			10,421			10,133			9,836			9,545
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(49	)		(59	)		(69	)		(79	)		(90	)		(102	)
Deferred taxes		15			19			21			24			27			30
Total tangible common equity	$	7,375			7,087			6,848			6,553			6,248			5,948

(a) After any related tax effect.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 3

AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES

	2014 Second Quarter								2014 First Quarter								2013 Fourth Quarter
Average balance in millions; interest in thousands	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
Assets
Earning assets
Loans and leases, net of unearned discount*
Commercial, financial, etc.	$	18,978		$	157,891		3.34	%		18,476			153,529		3.37	%		18,096			155,396		3.41	%
Real estate—commercial		26,140			278,596		4.22			26,143			287,584		4.40			26,231			300,225		4.48
Real estate—consumer		8,746			95,439		4.36			8,844			92,533		4.19			8,990			94,436		4.20
Consumer		10,479			118,157		4.52			10,300			116,631		4.59			10,233			118,554		4.60
Total loans and leases, net		64,343			650,083		4.05			63,763			650,277		4.14			63,550			668,611		4.17
Interest-bearing deposits at banks		4,080			2,535		.25			3,089			1,884		.25			2,948			1,829		.25
Federal funds sold and agreements to resell securities		90			16		.07			100			16		.07			115			20		.07
Trading account		84			264		1.25			71			477		2.68			82			280		1.36
Investment securities**
U.S. Treasury and federal agencies		9,984			74,046		2.97			8,286			64,814		3.17			7,349			60,150		3.25
Obligations of states and political subdivisions		166			1,986		4.82			177			2,269		5.20			186			2,436		5.20
Other		809			11,209		5.56			802			9,160		4.63			819			7,339		3.56
Total investment securities		10,959			87,241		3.19			9,265			76,243		3.34			8,354			69,925		3.32
Total earning assets		79,556			740,139		3.73			76,288			728,897		3.87			75,049			740,665		3.92
Allowance for credit losses		(922	)							(923	)							(925	)
Cash and due from banks		1,224								1,322								1,417
Other assets		10,015								9,978								9,789
Total assets	$	89,873								86,665								85,330
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
NOW accounts	$	1,026			330		.13			988			297		.12			933			311		.13
Savings deposits		39,478			11,181		.11			38,358			11,601		.12			38,079			13,388		.14
Time deposits		3,350			3,855		.46			3,460			3,940		.46			3,617			4,630		.51
Deposits at Cayman Islands office		339			181		.21			380			208		.22			414			217		.21
Total interest-bearing deposits		44,193			15,547		.14			43,186			16,046		.15			43,043			18,546		.17
Short-term borrowings		220			25		.05			264			32		.05			287			45		.06
Long-term borrowings		6,525			49,604		3.05			5,897			50,441		3.47			5,009			49,391		3.91
Total interest-bearing liabilities		50,938			65,176		.51			49,347			66,519		.55			48,339			67,982		.56
Noninterest-bearing deposits		25,466								24,141								24,169
Other liabilities		1,430								1,529								1,713
Total liabilities		77,834								75,017								74,221
Shareholders’ equity		12,039								11,648								11,109
Total liabilities and shareholders’ equity	$	89,873								86,665								85,330
Net interest spread							3.22								3.32								3.36
Contribution of interest-free funds							.18								.20								.20
Net interest income/margin on earning assets				$	674,963		3.40	%					662,378		3.52	%					672,683		3.56	%

(continued)

* Includes nonaccrual loans.

** Includes available-for-sale securities at amortized cost.

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 3 (continued)

AVERAGE BALANCE SHEETS AND ANNUALIZED TAXABLE-EQUIVALENT RATES (continued)

	2013 Third Quarter								2013 Second Quarter
Average balance in millions; interest in thousands	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
Assets
Earning assets
Loans and leases, net of unearned discount*
Commercial, financial, etc.	$	17,798		$	156,915		3.50	%		17,713			159,639		3.61	%
Real estate—commercial		26,129			301,178		4.51			26,051			311,111		4.72
Real estate—consumer		9,636			100,364		4.17			10,806			109,356		4.05
Consumer		11,295			130,179		4.57			11,409			130,418		4.58
Total loans and leases, net		64,858			688,636		4.21			65,979			710,524		4.32
Interest-bearing deposits at banks		2,646			1,650		.25			2,403			1,455		.24
Federal funds sold and agreements to resell securities		117			22		.08			199			46		.09
Trading account		67			211		1.27			86			309		1.43
Investment securities**
U.S. Treasury and federal agencies		5,948			48,406		3.23			3,522			28,454		3.24
Obligations of states and political subdivisions		193			2,460		5.07			197			2,530		5.14
Other		838			7,406		3.51			1,574			13,106		3.34
Total investment securities		6,979			58,272		3.31			5,293			44,090		3.34
Total earning assets		74,667			748,791		3.98			73,960			756,424		4.10
Allowance for credit losses		(935	)							(937	)
Cash and due from banks		1,374								1,326
Other assets		8,905								9,003
Total assets	$	84,011								83,352
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
NOW accounts	$	924			333		.14			941			321		.14
Savings deposits		36,990			13,733		.15			36,459			13,790		.15
Time deposits		3,928			6,129		.62			4,210			7,484		.71
Deposits at Cayman Islands office		392			213		.22			326			200		.25
Total interest-bearing deposits		42,234			20,408		.19			41,936			21,795		.21
Short-term borrowings		299			58		.08			343			96		.11
Long-term borrowings		5,010			49,112		3.89			5,051			50,729		4.03
Total interest-bearing liabilities		47,543			69,578		.58			47,330			72,620		.62
Noninterest-bearing deposits		23,998								23,744
Other liabilities		1,589								1,715
Total liabilities		73,130								72,789
Shareholders’ equity		10,881								10,563
Total liabilities and shareholders’ equity	$	84,011								83,352
Net interest spread							3.40								3.48
Contribution of interest-free funds							.21								.23
Net interest income/margin on earning assets				$	679,213		3.61	%					683,804		3.71	%

* Includes nonaccrual loans.

** Includes available-for-sale securities at amortized cost.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Incorporated by reference to the discussion contained under the caption “Taxable-equivalent Net Interest Income” in Part I, Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

Item 4. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. Based upon their evaluation of the effectiveness of M&T’s disclosure controls and procedures (as defined in Exchange Act rules 13a-15(e) and 15d-15(e)), Robert G. Wilmers, Chairman of the Board and Chief Executive Officer, and René F. Jones, Executive Vice President and Chief Financial Officer, concluded that M&T’s disclosure controls and procedures were effective as of June 30, 2014.

(b) Changes in internal control over financial reporting. M&T regularly assesses the adequacy of its internal control over financial reporting and enhances its controls in response to internal control assessments and internal and external audit and regulatory recommendations. No changes in internal control over financial reporting have been identified in connection with the evaluation of disclosure controls and procedures during the quarter ended June 30, 2014 that have materially affected, or are reasonably likely to materially affect, M&T’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $40 million. Although the Company does not believe that the outcome of pending litigations will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

Wilmington Trust Corporation Investigative and Litigation Matters

M&T’s Wilmington Trust Corporation (“Wilmington Trust”) subsidiary is the subject of certain governmental investigations arising from actions undertaken by Wilmington Trust prior to M&T’s acquisition of Wilmington Trust and its subsidiaries, as set forth below.

SEC Investigation: Prior to M&T’s acquisition of Wilmington Trust, the Securities and Exchange Commission (“SEC”) commenced an investigation of Wilmington Trust, relating to the financial reporting and securities filings of Wilmington Trust prior to its acquisition by M&T. Counsel for Wilmington Trust has met with the SEC to discuss the investigation and its possible resolution. On August 5, 2013, the SEC issued a Wells Notice to Wilmington Trust. On September 20, 2013, Wilmington Trust filed a Wells submission. The SEC investigation is ongoing.

-105-

DOJ Investigation: Prior to M&T’s acquisition of Wilmington Trust, the Department of Justice (“DOJ”) also commenced an investigation of Wilmington Trust, relating to Wilmington Trust’s financial reporting and securities filings, as well as certain commercial real estate lending relationships involving its subsidiary bank, Wilmington Trust Company, all of which relate to filings and activities occurring prior to the acquisition of Wilmington Trust by M&T. Counsel for Wilmington Trust has met with the DOJ to discuss the DOJ investigation. The DOJ investigation is ongoing.

Either of these investigations could lead to administrative or legal proceedings resulting in potential civil and/or criminal remedies, or settlements, including, among other things, enforcement actions, fines, penalties, restitution or additional costs and expenses.

In Re Wilmington Trust Securities Litigation (U.S. District Court, District of Delaware, Case No. 10-CV-0990-SLR): Beginning on November 18, 2010, a series of parties, purporting to be class representatives, commenced a putative class action lawsuit against Wilmington Trust, alleging that Wilmington Trust’s financial reporting and securities filings were in violation of securities laws. The cases were consolidated and Wilmington Trust moved to dismiss. On March 29, 2012, the Court granted Wilmington Trust’s motion to dismiss in its entirety, but allowed plaintiffs to re-file their Complaint. Plaintiffs subsequently filed a Second, Third and Fourth Amended Complaint. Wilmington Trust moved to dismiss the Fourth Amended Complaint on July 17, 2013. The Court issued an order denying Wilmington Trust’s motion to dismiss on March 20, 2014. The case is now proceeding with discovery.

Due to their complex nature, it is difficult to estimate when litigation and investigatory matters such as these may be resolved. As set forth in the introductory paragraph to this Item 1 — Legal Proceedings, current litigation and regulatory matters which the Company is subject to, including those involving Wilmington Trust-related entities, although not currently considered probable, are within a range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, and are included in the range of reasonably possible losses set forth above.

Item 1A. Risk Factors.

There have been no material changes in risk factors relating to M&T to those disclosed in response to Item 1A. to Part I of Form 10-K for the year ended December 31, 2013.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

(a)–(b) Not applicable.

(c)

Issuer Purchases of Equity Securities
Period	(a)Total Number of Shares (or Units) Purchased (1)		(b)Average Price Paid per Share (or Unit)		(c)Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d)Maximum Number (or Approximate Dollar Value) of Shares (or Units) that may yet be Purchased Under the Plans or Programs (2)
April 1 – April 30, 2014		1,918	$	121.66		—		2,181,500
May 1 – May 31, 2014		409		120.98		—		2,181,500
June 1 – June 30, 2014		4,756		123.83		—		2,181,500
Total		7,083	$	123.08		—

(1) The total number of shares purchased during the periods indicated reflects shares deemed to have been received from employees who exercised stock options by attesting to previously acquired common shares in satisfaction of the exercise price or shares received from employees upon the vesting of restricted stock awards in satisfaction of applicable tax withholding obligations, as is permitted under M&T’s stock-based compensation plans.

(2) On February 22, 2007, M&T announced a program to purchase up to 5,000,000 shares of its common stock. No shares were purchased under such program during the periods indicated.

Item 3. Defaults Upon Senior Securities.

(Not applicable.)

Item 4. Mine Safety Disclosures.

(None.)

Item 5. Other Information.

(None.)

-107-

Item 6. Exhibits.

The following exhibits are filed as a part of this report.

Exhibit No.
10.1	Consulting Agreement, dated as of June 16, 2014, between M&T Bank Corporation and Robert E. Sadler, Jr. Filed herewith.
31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Chief Executive Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Chief Financial Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance Document. Filed herewith.
101.SCH	XBRL Taxonomy Extension Schema. Filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. Filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase. Filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. Filed herewith.
101.DEF	XBRL Taxonomy Definition Linkbase. Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	M&T BANK CORPORATION
Date: August 7, 2014	By:	/s/ René F. Jones
		René F. Jones
		Executive Vice President and Chief Financial Officer

-108-

EXHIBIT INDEX

Exhibit No.
10.1	Consulting Agreement, dated as of June 16, 2014, between M&T Bank Corporation and Robert E. Sadler, Jr. Filed herewith.
31.1	Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.1	Certification of Chief Executive Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32.2	Certification of Chief Financial Officer under 18 U.S.C. §1350 pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance Document. Filed herewith.
101.SCH	XBRL Taxonomy Extension Schema. Filed herewith.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase. Filed herewith.
101.LAB	XBRL Taxonomy Extension Label Linkbase. Filed herewith.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase. Filed herewith.
101.DEF	XBRL Taxonomy Definition Linkbase. Filed herewith.

-109-

EX-10.1

Exhibit 10.1

June 16, 2014

Robert E. Sadler, Jr.

[Address Redacted]

RE: Consulting Agreement

Dear Bob:

M&T Bank Corporation (M&T) is pleased that you have agreed to renew your Consulting Agreement for an additional two year period, as detailed below. This letter describes the terms and conditions of your services as a consultant, as well as the remuneration provided for those services.

1. Purpose of Engagement

Upon the terms and subject to the conditions of this letter, you agree to serve as a consultant to M&T. The services to be performed as a consultant will include, but are not limited to: (1) provide strategic advice and counsel regarding all aspects of the business to M&T management and the Board of Directors of M&T, as requested, including product development/expansion, enterprise geographic expansion, acquisitions, mergers, and certain customer transactions; (2) be available to meet with, and to be involved with, clients and counterparties, at the request of M&T, where M&T believes that your personal knowledge, attendance and participation may be beneficial to M&T; (3) represent M&T at industry functions and/or with industry trade groups; (4) serve as Chairman of the Florida Advisory Council of Wilmington Trust, National Association; and (5) perform such other services as the parties may mutually agree upon from time to time during this engagement (collectively, the “Services”). You agree to perform the Services faithfully and diligently for M&T as set forth in this letter agreement.

2. Term

The term of this consulting agreement shall be from July 1, 2014 until June 30, 2016 (the “Term”), unless it is sooner terminated or renewed, each as provided in this letter agreement. You are under no obligation to continue this engagement beyond the Term. Additionally, M&T and you may mutually terminate the Term before it is scheduled to expire as provided for in Section 4.

3. Fees

During the Term, you will receive an annual retainer of $200,000.00 (the “Consulting Fee”). The Consulting Fee will be payable quarterly in arrears. In addition, during the Term, M&T shall provide you with the use of an office located at One M&T Center, Buffalo, NY 14203 and administrative support, as determined by M&T in its discretion, and shall reimburse actual out-of-pocket expenses reasonably incurred by you in connection with the Services (subject to M&T’s applicable expense reimbursement policy, as in effect from time to time).

4. Renewal and Termination

M&T or you may terminate the Term for any reason before its scheduled expiration by written notice to the other party, which notice may be effective immediately. No part of the Consulting Fee will be payable for any period following the date of termination.

The Term may be renewed from time to time if agreed to in writing by M&T and you (although neither party has any obligation to agree to a renewal term).

5. Independent Contractor

You agree that you are performing the Services for M&T as an independent contractor and not as an employee or M&T.

To acknowledge that the foregoing terms are acceptable to you, please execute and return a copy of this letter agreement to my attention.

Very truly yours,

M&T Bank Corporation

By:	/s/ Stephen J. Braunscheidel
	Stephen J. Braunscheidel
	Executive Vice President

Accepted and Agreed:

/s/ Robert E. Sadler, Jr.

Robert E. Sadler, Jr.

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Robert G. Wilmers, certify that:

1. I have reviewed this quarterly report on Form 10-Q of M&T Bank Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2014

By:	/s/ Robert G. Wilmers
	Robert G. Wilmers
	Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, René F. Jones, certify that:

1. I have reviewed this quarterly report on Form 10-Q of M&T Bank Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2014

By:	/s/ René F. Jones
	René F. Jones
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER UNDER 18 U.S.C. §1350

I, Robert G. Wilmers, Chairman of the Board and Chief Executive Officer of M&T Bank Corporation, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Quarterly Report on Form 10-Q of M&T Bank Corporation for the quarterly period ended June 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of M&T Bank Corporation.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

/s/ Robert G. Wilmers

Robert G. Wilmers

August 7, 2014

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to M&T Bank Corporation and will be retained by M&T Bank Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER UNDER 18 U.S.C. §1350

I, René F. Jones, Executive Vice President and Chief Financial Officer of M&T Bank Corporation, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1) the Quarterly Report on Form 10-Q of M&T Bank Corporation for the quarterly period ended June 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of M&T Bank Corporation.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Report or as a separate disclosure document.

/s/ René F. Jones

René F. Jones

August 7, 2014

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to M&T Bank Corporation and will be retained by M&T Bank Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended			3 Months Ended				6 Months Ended	3 Months Ended
	Jun. 30, 2014 Investment	Jun. 30, 2013	Jun. 30, 2014 Investment	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014 Privately Issued Mortgage-Backed Securities [Member]	Mar. 31, 2014 Privately Issued Mortgage-Backed Securities [Member]	Jun. 30, 2013 Privately Issued Mortgage-Backed Securities [Member]	Mar. 31, 2013 Privately Issued Mortgage-Backed Securities [Member]	Jun. 30, 2013 Privately Issued Mortgage-Backed Securities [Member]	Jun. 30, 2013 Visa Class B [Member]	Jun. 30, 2013 MasterCard Class B [Member]
Investment Holdings [Line Items]
Gross realized gain or loss on sale of Investment Securities	$ 0		$ 0
Gross realized gains on investment securities		116,000,000		116,000,000
Gain on sale of holdings											90,000,000	13,000,000
Gross realized losses on investment securities		60,000,000		60,000,000
Privately issued mortgage backed securities sold										1,000,000,000
Net loss on securities sold										46,000,000
Pre-tax other-than-temporary impairment losses						0	0	0	10,000,000
Number of investment securities with aggregate gross unrealized losses	289		289
Unrealized losses on individual investment securities	83,644,000		83,644,000		165,819,000
Cost method investment securities	$ 351,000,000		$ 351,000,000

XML

Borrowings - Additional Information (Detail) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Feb. 27, 2014
Schedule Of Borrowings [Line Items]
Junior subordinated debentures	$ 834,000,000
Debt Maturity, Start Year	Jan. 01, 2027
Debt Maturity, End Year	Dec. 31, 2033
Interest rate of debt instrument			8.50%
Agreements to repurchase securities	1,400,000,000	1,400,000,000
Collateral posted	1,500,000,000	1,600,000,000
Trust Preferred Securities Subject to Mandatory Redemption [Member]
Schedule Of Borrowings [Line Items]
Junior subordinated debentures			$ 350,000,000
2015 [Member]
Schedule Of Borrowings [Line Items]
Trust preferred capital securities	25.00%
2016 [Member]
Schedule Of Borrowings [Line Items]
Trust preferred capital securities	0.00%

XML

Loans and Leases and the Allowance for Credit Losses - Impaired Loans and Leases (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule Of Financial Receivables [Line Items]
Recorded investment	$ 908,691	$ 889,226
Unpaid principal balance	1,088,467	1,083,258
Related allowance	98,840	92,608
Commercial, Financial, Leasing, etc. [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	218,359	118,386
Unpaid principal balance	244,277	145,187
Related allowance	39,874	24,614
Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	198,433	178,841
Unpaid principal balance	237,324	216,658
Related allowance	16,330	19,520
Residential Builder and Developer [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	94,197	105,677
Unpaid principal balance	136,380	159,890
Related allowance	1,694	4,379
Other commercial construction [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	80,832	93,629
Unpaid principal balance	88,707	102,008
Related allowance	4,883	4,022
Residential [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	110,576	180,652
Unpaid principal balance	139,235	209,879
Related allowance	4,103	7,146
Residential Alt-A [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	132,949	140,268
Unpaid principal balance	168,133	176,739
Related allowance	12,000	14,000
Home equity lines and loans [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	19,358	13,672
Unpaid principal balance	20,424	14,796
Related allowance	5,877	3,312
Automobile [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	35,426	40,441
Unpaid principal balance	35,426	40,441
Related allowance	9,248	11,074
Other [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	18,561	17,660
Unpaid principal balance	18,561	17,660
Related allowance	4,831	4,541
Impaired Financing Receivable With Related Allowance [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	633,082	603,626
Unpaid principal balance	720,251	702,000
Related allowance	98,840	92,608
Impaired Financing Receivable With Related Allowance [Member] | Commercial, Financial, Leasing, etc. [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	165,446	90,293
Unpaid principal balance	189,110	112,092
Related allowance	39,874	24,614
Impaired Financing Receivable With Related Allowance [Member] | Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	95,543	113,570
Unpaid principal balance	112,623	132,325
Related allowance	16,330	19,520
Impaired Financing Receivable With Related Allowance [Member] | Residential Builder and Developer [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	28,048	33,311
Unpaid principal balance	36,634	55,122
Related allowance	1,694	4,379
Impaired Financing Receivable With Related Allowance [Member] | Other commercial construction [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	71,379	86,260
Unpaid principal balance	74,401	90,515
Related allowance	4,883	4,022
Impaired Financing Receivable With Related Allowance [Member] | Residential [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	90,895	96,508
Unpaid principal balance	109,723	114,521
Related allowance	4,103	7,146
Impaired Financing Receivable With Related Allowance [Member] | Residential Alt-A [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	108,426	111,911
Unpaid principal balance	123,349	124,528
Related allowance	12,000	14,000
Impaired Financing Receivable With Related Allowance [Member] | Home equity lines and loans [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	19,358	13,672
Unpaid principal balance	20,424	14,796
Related allowance	5,877	3,312
Impaired Financing Receivable With Related Allowance [Member] | Automobile [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	35,426	40,441
Unpaid principal balance	35,426	40,441
Related allowance	9,248	11,074
Impaired Financing Receivable With Related Allowance [Member] | Other [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	18,561	17,660
Unpaid principal balance	18,561	17,660
Related allowance	4,831	4,541
Impaired Financing Receivable with No Related Allowance [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	275,609	285,600
Unpaid principal balance	368,216	381,258
Impaired Financing Receivable with No Related Allowance [Member] | Commercial, Financial, Leasing, etc. [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	52,913	28,093
Unpaid principal balance	55,167	33,095
Impaired Financing Receivable with No Related Allowance [Member] | Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	102,890	65,271
Unpaid principal balance	124,701	84,333
Impaired Financing Receivable with No Related Allowance [Member] | Residential Builder and Developer [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	66,149	72,366
Unpaid principal balance	99,746	104,768
Impaired Financing Receivable with No Related Allowance [Member] | Other commercial construction [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	9,453	7,369
Unpaid principal balance	14,306	11,493
Impaired Financing Receivable with No Related Allowance [Member] | Residential [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	19,681	84,144
Unpaid principal balance	29,512	95,358
Impaired Financing Receivable with No Related Allowance [Member] | Residential Alt-A [Member]
Schedule Of Financial Receivables [Line Items]
Recorded investment	24,523	28,357
Unpaid principal balance	$ 44,784	$ 52,211

XML

Fair Value Measurements - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities issued by financial institutions and other entities backed by trust preferred securities at cost	$ 33		$ 33		$ 42
Fair value of securities issued by financial institutions and other entities backed by trust preferred securities	56		56		63
Loans measured at fair value on nonrecurring basis	212	254	212	254	222
Change in fair value of nonrecurring fair value measured loans for charge-offs and impairment reserves	32	34	47	69
Assets taken in foreclosure of defaulted loans measured at fair value on a nonrecurring basis	8		15	15
Significant Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured at fair value on nonrecurring basis	129	167	129	167	173
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured at fair value on nonrecurring basis	$ 83	$ 87	$ 83	$ 87	$ 49
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR			4.00%
Discount rates for fair value estimations			5.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR			11.00%
Discount rates for fair value estimations			80.00%
Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR			8.00%

XML

Shareholders' Equity - Additional Information (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Class of Stock [Line Items]
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value	$ 1.00	$ 1.00
Warrant [Member] | Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Exercise price of each class of warrants or rights outstanding	$ 518.96	$ 518.96
Warrant to purchase common stock	95,383	95,383

XML

Segment Information - Summary of Segment Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013
Sales Information [Line Items]
Average Assets	$ 88,278	$ 83,662	$ 82,637
Business Banking [Member]
Sales Information [Line Items]
Average Assets	5,286	5,080	5,010
Commercial Banking [Member]
Sales Information [Line Items]
Average Assets	22,742	21,655	21,446
Commercial Real Estate [Member]
Sales Information [Line Items]
Average Assets	16,878	17,150	17,122
Discretionary Portfolio [Member]
Sales Information [Line Items]
Average Assets	19,417	16,480	16,278
Residential Mortgage Banking [Member]
Sales Information [Line Items]
Average Assets	3,226	2,858	2,752
Retail Banking [Member]
Sales Information [Line Items]
Average Assets	10,229	10,997	11,357
Other Segments [Member]
Sales Information [Line Items]
Average Assets	$ 10,500	$ 9,442	$ 8,672

XML

Loans and Leases and the Allowance for Credit Losses - Summary of Current, Past Due and Nonaccrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	$ 62,564,483	$ 61,664,881
30-89 Days past due	596,963	704,658
Purchased impaired	282,517	330,792
Nonaccrual0	880,134	874,156
Total	64,747,693	64,073,159
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	18,831,026	18,489,474
30-89 Days past due	56,292	77,538
Purchased impaired	16,702	15,706
Nonaccrual0	192,193	110,739
Total	19,105,892	18,705,216
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	21,335,953	21,236,071
30-89 Days past due	142,904	145,749
Purchased impaired	82,554	88,034
Nonaccrual0	188,951	173,048
Total	21,796,778	21,741,858
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,203,959	1,025,984
30-89 Days past due	10,417	8,486
Purchased impaired	111,937	137,544
Nonaccrual0	83,624	96,427
Total	1,419,442	1,276,512
Other commercial construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	3,075,240	2,986,598
30-89 Days past due	11,764	42,234
Purchased impaired	43,511	57,707
Nonaccrual0	23,521	35,268
Total	3,158,054	3,129,838
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	7,499,250	7,630,368
30-89 Days past due	261,083	295,131
Purchased impaired	25,231	29,184
Nonaccrual0	198,816	252,805
Total	8,297,117	8,545,837
Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	258,899	283,253
30-89 Days past due	22,064	18,009
Purchased impaired
Nonaccrual0	78,686	81,122
Total	359,649	382,384
Home equity lines and loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	5,917,670	5,972,365
30-89 Days past due	34,440	40,537
Purchased impaired	2,582	2,617
Nonaccrual0	83,991	78,516
Total	6,064,260	6,121,789
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,621,311	1,314,246
30-89 Days past due	23,629	29,144
Purchased impaired
Nonaccrual0	16,075	21,144
Total	1,661,233	1,364,900
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,821,175	2,726,522
30-89 Days past due	34,370	47,830
Purchased impaired
Nonaccrual0	14,277	25,087
Total	2,885,268	2,804,825
Non-Acquired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	289,016	368,510
Non-Acquired [Member] | Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	3,910	4,981
Non-Acquired [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	9,862	63,353
Non-Acquired [Member] | Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing		141
Non-Acquired [Member] | Other commercial construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing
Non-Acquired [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	270,492	294,649
Non-Acquired [Member] | Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing
Non-Acquired [Member] | Home equity lines and loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing
Non-Acquired [Member] | Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing
Non-Acquired [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	4,752	5,386
Acquired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	134,580	130,162
Acquired [Member] | Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	5,769	6,778
Acquired [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	36,554	35,603
Acquired [Member] | Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	9,505	7,930
Acquired [Member] | Other commercial construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	4,018	8,031
Acquired [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	42,245	43,700
Acquired [Member] | Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing
Acquired [Member] | Home equity lines and loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	25,577	27,754
Acquired [Member] | Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	218	366
Acquired [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	$ 10,694

XML

Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at June 30, 2014 and December 31, 2013 measured at estimated fair value on a recurring basis:

	Fair value measurements at June 30, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	313,325		50,813		262,512		—
Investment securities available for sale:
U.S. Treasury and federal agencies		42,921		—		42,921		—
Obligations of states and political subdivisions		10,242		—		10,242		—
Mortgage-backed securities:
Government issued or guaranteed		7,617,627		—		7,617,627		—
Privately issued		119		—		—		119
Collateralized debt obligations		56,200		—		—		56,200
Other debt securities		124,763		—		124,763		—
Equity securities		156,907		94,974		61,933		—
		8,008,779		94,974		7,857,486		56,319
Real estate loans held for sale		623,380		—		623,380		—
Other assets (b)		117,718		—		95,503		22,215
Total assets	$	9,063,202		145,787		8,838,881		78,534
Trading account liabilities	$	202,159		—		202,159		—
Other liabilities (b)		14,657		—		14,465		192
Total liabilities	$	216,816		—		216,624		192

	Fair value measurements at December 31, 2013		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	376,131		51,386		324,745		—
Investment securities available for sale:
U.S. Treasury and federal agencies		37,776		—		37,776		—
Obligations of states and political subdivisions		10,811		—		10,811		—
Mortgage-backed securities:
Government issued or guaranteed		4,165,086		—		4,165,086		—
Privately issued		1,850		—		—		1,850
Collateralized debt obligations		63,083		—		—		63,083
Other debt securities		120,085		—		120,085		—
Equity securities		133,095		82,450		50,645		—
		4,531,786		82,450		4,384,403		64,933
Real estate loans held for sale		468,650		—		468,650		—
Other assets (b)		123,568		—		115,952		7,616
Total assets	$	5,500,135		133,836		5,293,750		72,549
Trading account liabilities	$	249,797		—		249,797		—
Other liabilities (b)		4,392		—		717		3,675
Total liabilities	$	254,189		—		250,514		3,675

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months and six months ended June 30, 2014 and 2013.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—March 31, 2014	$	696		$	61,768		$	12,589
Total gains realized/unrealized:
Included in earnings		—			—			31,517	(b)
Included in other comprehensive income		205	(e)		4,486	(e)		—
Sales		—			—			—
Settlements		(782	)		(10,054	)		—
Transfers in and/or out of Level 3 (c)		—			—			(22,083	)(d)
Balance—June 30, 2014	$	119		$	56,200		$	22,023
Changes in unrealized gains included in earnings related to assets still held at June 30, 2014	$	—		$	—		$	20,215	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—March 31, 2013	$	993,247		$	61,718		$	36,119
Total gains (losses) realized/unrealized:
Included in earnings		(46,302	)(a)		—			15,500	(b)
Included in other comprehensive income		90,203	(e)		(1,277	)(e)		—
Sales		(978,608	)		—			—
Settlements		(53,268	)		(525	)		—
Transfers in and/or out of Level 3 (c)		—			—			(44,211	)(d)
Balance—June 30, 2013	$	5,272		$	59,916		$	7,408
Changes in unrealized gains included in earnings related to assets still held at June 30, 2013	$	—		$	—		$	4,123	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains realized/unrealized:
Included in earnings		—			—			53,900	(b)
Included in other comprehensive income		272	(e)		9,132	(e)		—
Settlements		(2,003	)		(16,015	)		—
Transfers in and/or out of Level 3 (c)		—			—			(35,818	)(d)
Balance—June 30, 2014	$	119		$	56,200		$	22,023
Changes in unrealized gains included in earnings related to assets still held at June 30, 2014	$	—		$	—		$	24,099	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—January 1, 2013	$	1,023,886		$	61,869		$	47,859
Total gains (losses) realized/unrealized:
Included in earnings		(56,102	)(a)		—			58,812	(b)
Included in other comprehensive income		116,584	(e)		(537	)(e)		—
Sales		(978,608	)		—			—
Settlements		(100,488	)		(1,416	)		—
Transfers in and/or out of Level 3 (c)		—			—			(99,263	)(d)
Balance—June 30, 2013	$	5,272		$	59,916		$	7,408
Changes in unrealized gains included in earnings related to assets still held at June 30, 2013	$	—		$	—		$	5,132	(b)

(a) Reported as an OTTI loss or as gain (loss) on bank investment securities in the consolidated statement of income.

(b) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(c) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(d) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(e) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at June 30, 2014 and December 31, 2013:

	Fair value at June 30, 2014		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	119	Two independent pricing quotes	—		—
Collateralized debt obligations		56,200	Discounted cash flow	Probability of default		15%-56% (37%)
				Loss severity		100%
Net other assets (liabilities)(a)		22,023	Discounted cash flow	Commitment expirations		0%-97% (18%)
	Fair value at December 31, 2013		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	1,850	Two independent pricing quotes	—		—
Collateralized debt obligations		63,083	Discounted cash flow	Probability of default		17%-55% (39%)
				Loss severity		100%
Net other assets (liabilities)(a)		3,941	Discounted cash flow	Commitment expirations		0%-90% (20%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	June 30, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,917,436		$	1,917,436		$	1,835,382	$	82,054		$	—
Interest-bearing deposits at banks		3,032,530			3,032,530			—		3,032,530			—
Trading account assets		313,325			313,325			50,813		262,512			—
Investment securities		12,120,195			12,125,379			94,974		11,814,650			215,755
Loans and leases:
Commercial loans and leases		19,105,892			18,753,794			—		—			18,753,794
Commercial real estate loans		26,374,274			26,311,756			—		204,669			26,107,087
Residential real estate loans		8,656,766			8,712,237			—		5,436,622			3,275,615
Consumer loans		10,610,761			10,524,381			—		—			10,524,381
Allowance for credit losses		(917,666	)		—			—		—			—
Loans and leases, net		63,830,027			64,302,168			—		5,641,291			58,660,877
Accrued interest receivable		223,497			223,497			—		223,497			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,088,763	)	$	(26,088,763	)	$	—	$	(26,088,763	)	$	—
Savings deposits and NOW accounts		(40,216,607	)		(40,216,607	)		—		(40,216,607	)		—
Time deposits		(3,285,995	)		(3,306,300	)		—		(3,306,300	)		—
Deposits at Cayman Islands office		(237,890	)		(237,890	)		—		(237,890	)		—
Short-term borrowings		(161,631	)		(161,631	)		—		(161,631	)		—
Long-term borrowings		(7,391,931	)		(7,549,272	)		—		(7,549,272	)		—
Accrued interest payable		(54,394	)		(54,394	)		—		(54,394	)		—
Trading account liabilities		(202,159	)		(202,159	)		—		(202,159	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	22,023		$	22,023		$	—	$	—		$	22,023
Commitments to sell real estate loans		(10,832	)		(10,832	)		—		(10,832	)		—
Other credit-related commitments		(117,940	)		(117,940	)		—		—			(117,940	)
Interest rate swap agreements used for interest rate risk management		91,870			91,870			—		91,870			—

	December 31, 2013
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
							(in thousands)
Financial assets:
Cash and cash equivalents	$	1,672,934		$	1,672,934		$	1,596,877	$	76,057		$	—
Interest-bearing deposits at banks		1,651,138			1,651,138			—		1,651,138			—
Trading account assets		376,131			376,131			51,386		324,745			—
Investment securities		8,796,497			8,690,494			82,450		8,384,106			223,938
Loans and leases:
Commercial loans and leases		18,705,216			18,457,288			—		—			18,457,288
Commercial real estate loans		26,148,208			26,018,195			—		67,505			25,950,690
Residential real estate loans		8,928,221			8,867,872			—		5,432,207			3,435,665
Consumer loans		10,291,514			10,201,087			—		—			10,201,087
Allowance for credit losses		(916,676	)		—			—		—			—
Loans and leases, net		63,156,483			63,544,442			—		5,499,712			58,044,730
Accrued interest receivable		222,558			222,558			—		222,558			—
Financial liabilities:
Noninterest-bearing deposits	$	(24,661,007	)	$	(24,661,007	)	$	—	$	(24,661,007	)	$	—
Savings deposits and NOW accounts		(38,611,021	)		(38,611,021	)		—		(38,611,021	)		—
Time deposits		(3,523,838	)		(3,542,789	)		—		(3,542,789	)		—
Deposits at Cayman Islands office		(322,746	)		(322,746	)		—		(322,746	)		—
Short-term borrowings		(260,455	)		(260,455	)		—		(260,455	)		—
Long-term borrowings		(5,108,870	)		(5,244,902	)		—		(5,244,902	)		—
Accrued interest payable		(43,419	)		(43,419	)		—		(43,419	)		—
Trading account liabilities		(249,797	)		(249,797	)		—		(249,797	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	3,941		$	3,941		$	—	$	—		$	3,941
Commitments to sell real estate loans		12,360			12,360			—		12,360			—
Other credit-related commitments		(118,886	)		(118,886	)		—		—			(118,886	)
Interest rate swap agreements used for interest rate risk management		102,875			102,875			—		102,875			—

XML

Segment Information - Summary of Segment Information (Parenthetical) (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting [Abstract]
Taxable-equivalent adjustment	$ 5,849,000	$ 6,217,000	$ 11,794,000	$ 12,667,000

XML

Fair Value Measurements - Quantitative Information Related to Significant Unobservable Inputs (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Mortgage-backed Securities, Privately issued [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investments	$ 119	$ 1,850	$ 696	$ 5,272	$ 993,247	$ 1,023,886
Valuation technique	Two independent pricing quotes	Two independent pricing quotes
Unobservable inputs/ assumptions	-
Mortgage-backed Securities, Privately issued [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default
Mortgage-backed Securities, Privately issued [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default
Collateralized Debt Obligations [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investments	56,200	63,083	61,768	59,916	61,718	61,869
Valuation technique	Discounted cash flow	Discounted cash flow
Unobservable inputs/ assumptions	Probability of default Loss severity
Collateralized Debt Obligations [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	(37.00%)	(39.00%)
Loss severity	100.00%	100.00%
Collateralized Debt Obligations [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	15.00%	17.00%
Loss severity
Collateralized Debt Obligations [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	56.00%	55.00%
Loss severity
Other Assets and Other Liabilities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Investments	$ 22,023	$ 3,941	$ 12,589	$ 7,408	$ 36,119	$ 47,859
Valuation technique	Discounted cash flow	Discounted cash flow
Unobservable inputs/ assumptions	Commitment expirations
Other Assets and Other Liabilities [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations weighted-average	(18.00%)	(20.00%)
Other Assets and Other Liabilities [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	0.00%	0.00%
Other Assets and Other Liabilities [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	97.00%	90.00%

XML

Shareholders' Equity - Issued and Outstanding Preferred Stock (Parenthetical) (Detail) (USD $)	6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended		6 Months Ended					1 Months Ended	6 Months Ended
	Jun. 30, 2014 Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Dec. 31, 2013 Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]	Dec. 31, 2013 Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Dec. 31, 2013 Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]	Dec. 31, 2013 Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Dividend Paid Rate up to November 14, 2013 [Member] Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Dividend Paid Rate up to November 14, 2013 [Member] Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Dividend Paid Rate thereafter November 14, 2013 [Member] Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Dividend Paid Rate thereafter November 14, 2013 [Member] Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Warrant [Member] Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Mar. 31, 2013 Warrant [Member] Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]	Jun. 30, 2014 Cash Less Exercise [Member] Warrant [Member] Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Liquidation preference	$ 1,000	$ 1,000	$ 10,000	$ 10,000	$ 1,000	$ 1,000	$ 1,000	$ 1,000
Cashless warrants exercised	1,218,522				407,542										379,376
Exercise price of each class of warrants or rights outstanding	$ 73.86				$ 55.76
Preferred stock dividend rate			6.875%				6.45%		5.00%	5.00%	6.375%	6.375%
Date of change in the dividend rate	Nov. 14, 2013				Nov. 14, 2013		Feb. 14, 2024
Preferred shares redemption date	Nov. 15, 2018		Jun. 15, 2016		Nov. 15, 2018		Feb. 15, 2024
Issuance of common shares														186,589	149,834
Warrants and rights outstanding													770,019
Preferred Stock, Redemption Feature, Redemption Term			90 days				90 days
London Interbank offered rate plus basis points							3.61%

XML

Commitments and Contingencies - Additional Information (Detail) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]
Maximum credit risk for recourse associated with loans sold under Federal National Mortgage Association Delegated Underwriting and Servicing program	$ 2,300,000,000	$ 2,300,000,000
Outstanding loan principal balances reinsured	12,000,000
Range of reasonably possible losses, minimum	0
Range of reasonably possible losses, maximum	$ 40,000,000

XML

Segment Information - Information about Company's Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Net income (loss)	$ 284,336	$ 348,466	$ 513,353	$ 622,579
Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	27,760	30,562	56,358	63,123
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	105,358	87,220	205,123	194,607
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)	77,526	89,868	152,087	166,376
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)	14,980	(8,036)	26,259	(6,190)
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	27,712	34,143	47,123	68,504
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	32,034	51,500	61,745	103,850
Other Segments [Member]
Segment Reporting Information [Line Items]
Net income (loss)	(1,034)	63,209	(35,342)	32,309
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	1,125,526	1,186,276	2,202,066	2,275,208
Operating Segments [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	104,688	106,486	206,987	211,904
Operating Segments [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	252,496	252,907	501,082	502,757
Operating Segments [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Total revenues	164,912	187,773	323,272	353,066
Operating Segments [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Total revenues	29,912	(14,109)	54,569	(2,068)
Operating Segments [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	110,751	111,764	205,339	231,663
Operating Segments [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	268,494	292,837	530,382	584,022
Operating Segments [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	194,273	248,618	380,435	393,864
Intersegment activity eliminated in consolidated totals [Member]
Segment Reporting Information [Line Items]
Total revenues
Intersegment activity eliminated in consolidated totals [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	1,220	1,319	2,277	2,513
Intersegment activity eliminated in consolidated totals [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	1,356	1,315	2,553	2,665
Intersegment activity eliminated in consolidated totals [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Total revenues	525	554	873	2,106
Intersegment activity eliminated in consolidated totals [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Total revenues	(5,282)	(10,015)	(10,321)	(18,616)
Intersegment activity eliminated in consolidated totals [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	11,772	21,589	21,520	40,287
Intersegment activity eliminated in consolidated totals [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	3,897	3,598	7,402	6,855
Intersegment activity eliminated in consolidated totals [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	$ (13,488)	$ (18,360)	$ (24,304)	$ (35,810)

XML

Fair Value Measurements - Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	$ 313,325	$ 376,131
Investment securities	8,008,779	4,531,786
Real estate loans held for sale	623,380	468,650
Other assets	117,718	123,568
Total assets	9,063,202	5,500,135
Trading account liabilities	202,159	249,797
Other liabilities	14,657	4,392
Total liabilities	216,816	254,189
U.S. Treasury and federal agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	42,921	37,776
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	10,242	10,811
Government Issued or Guaranteed [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	7,617,627	4,165,086
Privately Issued Mortgage-Backed Securities [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	119	1,850
Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	56,200	63,083
Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	124,763	120,085
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	156,907	133,095
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	50,813	51,386
Investment securities	94,974	82,450
Real estate loans held for sale
Other assets
Total assets	145,787	133,836
Trading account liabilities
Other liabilities
Total liabilities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury and federal agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Issued or Guaranteed [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Privately Issued Mortgage-Backed Securities [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	94,974	82,450
Significant Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	262,512	324,745
Investment securities	7,857,486	4,384,403
Real estate loans held for sale	623,380	468,650
Other assets	95,503	115,952
Total assets	8,838,881	5,293,750
Trading account liabilities	202,159	249,797
Other liabilities	14,465	717
Total liabilities	216,624	250,514
Significant Observable Inputs (Level 2) [Member] | U.S. Treasury and federal agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	42,921	37,776
Significant Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	10,242	10,811
Significant Observable Inputs (Level 2) [Member] | Government Issued or Guaranteed [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	7,617,627	4,165,086
Significant Observable Inputs (Level 2) [Member] | Privately Issued Mortgage-Backed Securities [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Significant Observable Inputs (Level 2) [Member] | Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Significant Observable Inputs (Level 2) [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	124,763	120,085
Significant Observable Inputs (Level 2) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	61,933	50,645
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets
Investment securities	56,319	64,933
Real estate loans held for sale
Other assets	22,215	7,616
Total assets	78,534	72,549
Trading account liabilities
Other liabilities	192	3,675
Total liabilities	192	3,675
Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury and federal agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Significant Unobservable Inputs (Level 3) [Member] | Government Issued or Guaranteed [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Significant Unobservable Inputs (Level 3) [Member] | Privately Issued Mortgage-Backed Securities [Member] | Mortgage-backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	119	1,850
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	56,200	63,083
Significant Unobservable Inputs (Level 3) [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities

XML

Acquisitions (Tables)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Summary of Merger-Related Expenses

A summary of merger-related expenses incurred in 2013 associated with the pending Hudson City acquisition included in the consolidated statement of income is presented below. There were no merger-related expenses during the three months or six months ended June 30, 2014.

	Three months ended		Six months ended
	June 30, 2013		June 30, 2013
	(in thousands)
Salaries and employee benefits	$	300	$	836
Equipment and net occupancy		489		690
Printing, postage and supplies		998		1,825
Other costs of operations		5,845		9,013
	$	7,632	$	12,364

XML

Loans and Leases and the Allowance for Credit Losses - Summary of Loan Grades (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 64,747,693	$ 64,073,159
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,105,892	18,705,216
Commercial, Financial, Leasing, etc. [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	18,287,252	17,894,592
Commercial, Financial, Leasing, etc. [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	626,447	699,885
Commercial, Financial, Leasing, etc. [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	192,193	110,739
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	21,796,778	21,741,858
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	21,012,039	20,972,257
Commercial [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	595,788	596,553
Commercial [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	188,951	173,048
Residential Builder and Developer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,419,442	1,276,512
Residential Builder and Developer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,277,387	1,107,144
Residential Builder and Developer [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	58,431	72,941
Residential Builder and Developer [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	83,624	96,427
Other commercial construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	3,158,054	3,129,838
Other commercial construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	3,079,596	3,040,106
Other commercial construction [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	54,937	54,464
Other commercial construction [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 23,521	$ 35,268

XML

Investment Securities - Investment Securities in Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	$ 56,623	$ 1,699,426
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(1,417)	(19,458)
Estimated fair value, 12 months or more	113,443	116,330
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(16,306)	(20,454)
Held to maturity, Estimated fair value, Less than 12 months	149,053	2,643,467
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(912)	(65,269)
Held to maturity, Estimated fair value, 12 months or more	893,984	160,563
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(65,009)	(60,638)
Total investment securities, fair value less than 12 months	205,676	4,342,893
Investment Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(2,329)	(84,727)
Total of investment securities, fair value, 12 Months or More	1,007,427	276,893
Investment Securities Continuous Unrealized Loss Position Twelve Months or Longer Aggregate Losses	(81,315)	(81,092)
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	42,896	1,697,094
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(158)	(19,225)
Estimated fair value, 12 months or more	8,254	5,815
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(190)	(125)
Held to maturity, Estimated fair value, Less than 12 months	140,724	2,629,950
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(878)	(65,149)
Held to maturity, Estimated fair value, 12 months or more	730,795
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(14,003)
Privately Issued Mortgage-Backed Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Held to maturity, Estimated fair value, Less than 12 months
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses
Held to maturity, Estimated fair value, 12 months or more	159,436	159,005
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(50,952)	(60,623)
Privately Issued Mortgage-Backed Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses
Estimated fair value, 12 months or more	77	98
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(4)	(5)
Obligations of States and Political Subdivisions [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	1,832
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(55)
Estimated fair value, 12 months or more	437	558
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(4)	(6)
Held to maturity, Estimated fair value, Less than 12 months	8,329	13,517
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(34)	(120)
Held to maturity, Estimated fair value, 12 months or more	3,753	1,558
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(54)	(15)
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	2,633
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(114)
Estimated fair value, 12 months or more	5,557	6,257
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(334)	(857)
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	157	1,428
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(10)	(4)
Estimated fair value, 12 months or more	99,118	103,602
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(15,774)	(19,461)
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	3,240	159
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(1,077)	(227)
Estimated fair value, 12 months or more
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses
U.S. Treasury and federal agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	5,865	745
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(3)	(2)
Estimated fair value, 12 months or more
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses

XML

Commitments and Contingencies - Company's Significant Commitments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Commitments to extend credit
Home equity lines of credit	$ 6,246,501	$ 6,218,823
Commercial real estate loans to be sold	250,725	62,386
Other commercial real estate and construction	4,482,869	3,919,545
Residential real estate loans to be sold	596,865	469,869
Other residential real estate	412,964	384,617
Commercial and other	10,560,928	10,419,545
Standby letters of credit	3,581,160	3,600,528
Commercial letters of credit	43,653	53,284
Financial guarantees and indemnification contracts	2,701,575	2,457,633
Commitments to sell real estate loans	$ 1,254,309	$ 854,656

XML

Acquisitions - Summary of Merger-Related Expenses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Summary of merger-related expenses
Salaries and employee benefits	$ 339,713	$ 323,136	$ 711,039	$ 679,687
Equipment and net occupancy	68,084	64,278	139,251	129,437
Printing, postage and supplies	9,180	10,298	20,136	20,997
Other costs of operations	239,828	170,682	463,100	341,088
Hudson City [Member]
Summary of merger-related expenses
Salaries and employee benefits		300		836
Equipment and net occupancy		489		690
Printing, postage and supplies		998		1,825
Other costs of operations		5,845		9,013
Total merger-related expenses	$ 0	$ 7,632	$ 0	$ 12,364

XML

Loans and Leases and the Allowance for Credit Losses - Recorded Investment in Loans and Leases on Basis of Company's Impairment Methodology (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 64,747,693	$ 64,073,159
Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	906,621	886,858
Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	63,558,555	62,855,509
Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	282,517	330,792
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,105,892	18,705,216
Commercial, Financial, Leasing, etc. [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	218,359	118,386
Commercial, Financial, Leasing, etc. [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	18,870,831	18,571,124
Commercial, Financial, Leasing, etc. [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	16,702	15,706
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	26,374,274	26,148,208
Commercial Real Estate [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	371,950	376,339
Commercial Real Estate [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	25,764,322	25,488,584
Commercial Real Estate [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	238,002	283,285
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	8,656,766	8,928,221
Residential Real Estate [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	242,967	320,360
Residential Real Estate [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	8,388,568	8,578,677
Residential Real Estate [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	25,231	29,184
Consumer loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	10,610,761	10,291,514
Consumer loans [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	73,345	71,773
Consumer loans [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	10,534,834	10,217,124
Consumer loans [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 2,582	$ 2,617

XML

Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	$ 359,938	$ 414,263
Liability derivatives, Fair value	216,816	254,189
Derivatives not designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	265,866	304,431
Liability derivatives, Fair value	209,234	253,702
Fair Value Hedges [Member] | Derivatives designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	94,072	109,832
Liability derivatives, Fair value	6,412	487
Interest rate swap agreements [Member] | Fair Value Hedges [Member] | Derivatives designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	93,040	102,875
Interest rate swap agreements [Member] | Cash Flow Hedging [Member] | Derivatives designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Liability derivatives, Fair value	1,170
Commitments to sell real estate loans [Member] | Derivatives not designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	1,431	6,120
Liability derivatives, Fair value	6,883	230
Commitments to sell real estate loans [Member] | Fair Value Hedges [Member] | Derivatives designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	1,032	6,957
Liability derivatives, Fair value	6,412	487
Mortgage-related commitments to originate real estate loans for sale [Member] | Derivatives not designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	22,215	7,616
Liability derivatives, Fair value	192	3,675
Interest rate contracts [Member] | Derivatives not designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	234,436	274,864
Liability derivatives, Fair value	194,393	234,455
Foreign exchange and other option and futures contracts [Member] | Derivatives not designated and qualifying as hedging instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	7,784	15,831
Liability derivatives, Fair value	$ 7,766	$ 15,342

XML

Earnings Per Common Share - Computations of Diluted Earnings Per Common Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]
Net income available to common equity	$ 263,893	$ 332,911	$ 478,236	$ 591,514
Less: Income attributable to unvested stock-based compensation awards	(3,198)	(4,354)	(5,807)	(7,881)
Net income available to common shareholders	$ 260,695	$ 328,557	$ 472,429	$ 583,633
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards	132,473	129,964	132,139	129,708
Less: Unvested stock-based compensation awards	(1,617)	(1,712)	(1,603)	(1,746)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock	972	765	943	866
Adjusted weighted-average shares outstanding	131,828	129,017	131,479	128,828
Diluted earnings per common share	$ 1.98	$ 2.55	$ 3.59	$ 4.53

XML

Loans and Leases and the Allowance for Credit Losses - Changes in Allowance for Credit Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 916,768	$ 927,117	$ 916,676	$ 925,860
Provision for credit losses	30,000	57,000	62,000	95,000
Net charge-offs
Charge-offs	(41,838)	(76,626)	(89,277)	(125,574)
Recoveries	12,736	19,574	28,267	31,779
Net charge-offs	(29,102)	(57,052)	(61,010)	(93,795)
Ending balance	917,666	927,065	917,666	927,065
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	276,835	257,851	273,383	246,759
Provision for credit losses	25,556	55,647	38,154	73,527
Net charge-offs
Charge-offs	(14,142)	(46,312)	(28,951)	(55,856)
Recoveries	4,002	1,681	9,665	4,437
Net charge-offs	(10,140)	(44,631)	(19,286)	(51,419)
Ending balance	292,251	268,867	292,251	268,867
Real Estate Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	324,805	328,016	324,978	337,101
Provision for credit losses	(12,229)	(10,913)	(12,113)	(11,225)
Net charge-offs
Charge-offs	(2,814)	(4,204)	(6,300)	(13,792)
Recoveries	1,492	11,365	4,689	12,180
Net charge-offs	(1,322)	7,161	(1,611)	(1,612)
Ending balance	311,254	324,264	311,254	324,264
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	77,062	90,122	78,656	88,807
Provision for credit losses	(1,957)	(1,438)	2,271	3,598
Net charge-offs
Charge-offs	(5,478)	(5,092)	(12,931)	(13,263)
Recoveries	2,777	1,719	4,408	6,169
Net charge-offs	(2,701)	(3,373)	(8,523)	(7,094)
Ending balance	72,404	85,311	72,404	85,311
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	162,134	176,793	164,644	179,418
Provision for credit losses	18,676	13,707	32,817	28,543
Net charge-offs
Charge-offs	(19,404)	(21,018)	(41,095)	(42,663)
Recoveries	4,465	4,809	9,505	8,993
Net charge-offs	(14,939)	(16,209)	(31,590)	(33,670)
Ending balance	165,871	174,291	165,871	174,291
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	75,932	74,335	75,015	73,775
Provision for credit losses	(46)	(3)	871	557
Net charge-offs
Charge-offs
Recoveries
Net charge-offs
Ending balance	$ 75,886	$ 74,332	$ 75,886	$ 74,332

XML

Significant accounting policies

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Significant accounting policies

1. Significant accounting policies

The consolidated financial statements of M&T Bank Corporation (“M&T”) and subsidiaries (“the Company”) were compiled in accordance with generally accepted accounting principles (“GAAP”) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2013 Annual Report. In the opinion of management, all adjustments necessary for a fair presentation have been made and were all of a normal recurring nature.

XML

Earnings Per Common Share - Additional Information (Detail) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	1.7	4.5	2.4	4.6

XML

Loans and Leases and the Allowance for Credit Losses - Outstanding Principal Balance and Carrying Amount of Loans that is Included in Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Outstanding principal and carrying value of acquired loans recorded at fair value
Outstanding principal balance	$ 3,828,214	$ 4,656,811
Carrying amount	3,249,071	4,007,452
Commercial, Financial, Leasing, etc. [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	396,166	580,685
Real Estate Commercial [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	1,285,386	1,541,368
Residential Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	515,791	576,473
Consumer [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	$ 1,051,728	$ 1,308,926

XML

Pension plans and other postretirement benefits (Tables)

6 Months Ended

Jun. 30, 2014

Compensation And Retirement Disclosure [Abstract]

Net Periodic Pension Expense for Defined Benefit Plans

Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended June 30
	2014			2013			2014			2013
	(in thousands)
Service cost	$	5,160			6,130			152			171
Interest cost on projected benefit obligation		17,331			14,939			714			670
Expected return on plan assets		(22,859	)		(21,802	)		—			—
Amortization of prior service cost		(1,626	)		(1,628	)		(329	)		(329	)
Amortization of net actuarial loss		3,897			10,138			—			80
Net periodic benefit cost	$	1,903			7,777			537			592
	Pension benefits						Other postretirement benefits
	Six months ended June 30
	2014			2013			2014			2013
	(in thousands)
Service cost	$	10,260			12,180			302			371
Interest cost on projected benefit obligation		34,581			30,065			1,389			1,345
Expected return on plan assets		(45,784	)		(43,677	)		—			—
Amortization of prior service cost		(3,276	)		(3,278	)		(679	)		(679	)
Amortization of net actuarial loss		7,247			20,538			—			180
Net periodic benefit cost	$	3,028			15,828			1,012			1,217

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Shareholders' equity (Tables)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Issued and Outstanding Preferred Stock

Issued and outstanding preferred stock of M&T is presented below:

	Shares issued and outstanding		Carrying value June 30, 2014		Carrying value December 31, 2013
			(dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share		230,000	$	230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		151,500		151,500		151,500
Series D (b)
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000		500,000		500,000
Series E (c)
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E, $1,000 liquidation preference per share		350,000		350,000		—

(a) Dividends, if declared, were paid quarterly at a rate of 5% per year through November 14, 2013 and are paid at 6.375% thereafter. M&T has agreed to not redeem the preferred shares until on or after November 15, 2018. Warrants to purchase M&T common stock were issued in connection with the Series A and C preferred stock (Series A – 1,218,522 common shares at $73.86 per share; Series C – 407,542 common shares at $55.76 per share). In March 2013, the Series C warrants were exercised in a “cashless” exercise, resulting in the issuance of 186,589 common shares. During the six months ended June 30, 2014, 379,376 of the Series A warrants were exercised in “cashless” exercises, resulting in the issuance of 149,834 common shares. Remaining outstanding Series A warrants were 770,019 at June 30, 2014.

(b) Dividends, if declared, will be paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, will be paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate plus 361 basis points (hundredths of one percent). The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

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Shareholders' Equity - Issued and Outstanding Preferred Stock (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Class of Stock [Line Items]
Carrying value	$ 1,231,500	$ 881,500
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	230,000
Preferred stock, shares outstanding	230,000
Carrying value	230,000	230,000
Series D Fixed Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	50,000
Preferred stock, shares outstanding	50,000
Carrying value	500,000	500,000
Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	151,500
Preferred stock, shares outstanding	151,500
Carrying value	151,500	151,500
Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	350,000
Preferred stock, shares outstanding	350,000
Carrying value	$ 350,000

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Loans and Leases and the Allowance for Credit Losses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual principal and interest payments	$ 283	$ 331
Purchased impaired loans as a percentage of total assets	Less than 1% of the Company's assets
Loan delinquent period	90 days
Delinquency period for loan level collectability analysis consumer mortgage	More than 150 days
Real Estate Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Commercial mortgage loans held for sale	205	68
Residential Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for sale	$ 419	$ 401

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Earnings per common share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Computations of Basic Earnings Per Common Share

The computations of basic earnings per common share follow:

	Three months ended June 30						Six months ended June 30
	2014			2013			2014			2013
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	284,336			348,466		$	513,353			622,579
Less: Preferred stock dividends (a)		(20,443	)		(13,362	)		(35,117	)		(26,725	)
Amortization of preferred stock discount (a)		—			(2,193	)		—			(4,340	)
Net income available to common equity		263,893			332,911			478,236			591,514
Less: Income attributable to unvested stock-based compensation awards		(3,213	)		(4,373	)		(5,832	)		(7,917	)
Net income available to common shareholders	$	260,680			328,538		$	472,404			583,597
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		132,473			129,964			132,139			129,708
Less: Unvested stock-based compensation awards		(1,617	)		(1,712	)		(1,603	)		(1,746	)
Weighted-average shares outstanding		130,856			128,252			130,536			127,962
Basic earnings per common share	$	1.99			2.56		$	3.62			4.56

(a) Including impact of not as yet declared cumulative dividends.

Computations of Diluted Earnings Per Common Share

The computations of diluted earnings per common share follow:

	Three months ended June 30						Six months ended June 30
	2014			2013			2014			2013
	(in thousands, except per share)
Net income available to common equity	$	263,893			332,911		$	478,236			591,514
Less: Income attributable to unvested stock-based compensation awards		(3,198	)		(4,354	)		(5,807	)		(7,881	)
Net income available to common shareholders	$	260,695			328,557		$	472,429			583,633
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		132,473			129,964			132,139			129,708
Less: Unvested stock-based compensation awards		(1,617	)		(1,712	)		(1,603	)		(1,746	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		972			765			943			866
Adjusted weighted-average shares outstanding		131,828			129,017			131,479			128,828
Diluted earnings per common share	$	1.98			2.55		$	3.59			4.53

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Comprehensive income (Tables)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Components of Other Comprehensive Income (Loss) and Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net Income

The following tables display the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:

	Investment Securities				Defined benefit plans			Other			Total amount before tax			Income tax			Net
	With OTTI		All other
	(in thousands)
Balance—January 1, 2014	$	37,255		18,450		(161,617	)		115		$	(105,797	)		41,638		$	(64,159	)
Other comprehensive income before reclassifications: Unrealized holding gains, net		10,842		156,764		—			—			167,606			(65,774	)		101,832
Foreign currency translation adjustment		—		—		—			479			479			(166	)		313
Unrealized losses on cash flow hedges		—		—		—			(1,170	)		(1,170	)		459			(711	)
Total other comprehensive income before reclassifications		10,842		156,764		—			(691	)		166,915			(65,481	)		101,434
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		1		1,702		—			—			1,703	(a)		(669	)		1,034
Amortization of prior service credit		—		—		(3,955	)		—			(3,955	)(d)		1,552			(2,403	)
Amortization of actuarial losses		—		—		7,247			—			7,247	(d)		(2,845	)		4,402
Total reclassifications		1		1,702		3,292			—			4,995			(1,962	)		3,033
Total gain (loss) during the period		10,843		158,466		3,292			(691	)		171,910			(67,443	)		104,467
Balance—June 30, 2014	$	48,098		176,916		(158,325	)		(576	)	$	66,113			(25,805	)	$	40,308

	Investment Securities						Defined benefit plans			Other			Total amount before tax			Income tax			Net
	With OTTI			All other
	(in thousands)
Balance—January 1, 2013	$	(91,835	)		152,199			(455,590	)		(431	)	$	(395,657	)		155,393		$	(240,264	)
Other comprehensive income before reclassifications:
Unrealized holding gains(losses), net		55,473			(95,167	)		—			—			(39,694	)		15,557			(24,137	)
Foreign currency translation adjustment		—			—			—			(1,644	)		(1,644	)		598			(1,046	)
Total other comprehensive income before reclassifications		55,473			(95,167	)		—			(1,644	)		(41,338	)		16,155			(25,183	)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		109			2,262			—			—			2,371	(a)		(931	)		1,440
OTTI charges recognized in net income		9,800			—			—			—			9,800	(b)		(3,847	)		5,953
Losses (gains) realized in net income		41,217			(8,129	)		—			—			33,088	(c)		(12,987	)		20,101
Amortization of prior service credit		—			—			(3,957	)		—			(3,957	)(d)		1,553			(2,404	)
Amortization of actuarial losses		—			—			20,718			—			20,718	(d)		(8,132	)		12,586
Total reclassifications		51,126			(5,867	)		16,761			—			62,020			(24,344	)		37,676
Total gain (loss) during the period		106,599			(101,034	)		16,761			(1,644	)		20,682			(8,189	)		12,493
Balance—June 30, 2013	$	14,764			51,165			(438,829	)		(2,075	)	$	(374,975	)		147,204		$	(227,771	)

(a) Included in interest income

(b) Included in OTTI losses recognized in earnings

(c) Included in gain (loss) on bank investment securities

(d) Included in salaries and employee benefits expense

Accumulated Other Comprehensive Income (Loss), Net

Accumulated other comprehensive income (loss), net consisted of the following:

	Investment securities				Defined benefit plans			Other			Total
	With OTTI		All other
Balance—December 31, 2013	$	22,632		11,294		(98,182	)		97		$	(64,159	)
Net gain (loss) during period		6,587		96,279		1,999			(398	)		104,467
Balance—June 30, 2014	$	29,219		107,573		(96,183	)		(301	)	$	40,308

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Common stock per share dividend amount	$ 0.70	$ 0.70	$ 1.40	$ 1.40
Retained earnings [Member]
Common stock per share dividend amount			$ 1.40	$ 1.40
Series C stock warrants [Member] | Common stock [Member]
Exercise of warrants into shares of common stock		407,542		407,542
Exercise of warrants into shares of common stock				186,589
Series A Warrants [Member] | Common stock [Member]
Exercise of warrants into shares of common stock	379,376		379,376
Exercise of warrants into shares of common stock			149,834

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Derivative financial instruments (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Information About Interest Rate Swap Agreements

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional amount		Average maturity		Weighted- average rate
					Fixed			Variable
	(in thousands)		(in years)
June 30, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		3.2		4.42	%		1.18	%
Cash flow hedges:
Interest payments on forecasted issuance of long-term borrowings (b)		300,000		5.1		1.82	%		0.23	%
	$	1,700,000		3.5		3.96	%		1.02	%
December 31, 2013
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		3.7		4.42	%		1.20	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

(b) Under the terms of this agreement, the Company was to receive settlement amounts at a variable rate and pay at a fixed rate.

Information About Fair Values of Derivative Instruments in Consolidated Balance Sheet

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset derivatives				Liability derivatives
	Fair value				Fair value
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	93,040		102,875	$	—		—
Commitments to sell real estate loans (a)		1,032		6,957		6,412		487
		94,072		109,832		6,412		487
Cash flow hedges:
Interest rate swap agreements (a)		—		—		1,170		—
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		22,215		7,616		192		3,675
Commitments to sell real estate loans (a)		1,431		6,120		6,883		230
Trading:
Interest rate contracts (b)		234,436		274,864		194,393		234,455
Foreign exchange and other option and futures contracts (b)		7,784		15,831		7,766		15,342
		265,866		304,431		209,234		253,702
Total derivatives	$	359,938		414,263	$	216,816		254,189

(a) Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.

Information About Fair Values of Derivative Instruments in Consolidated Statement of Income

	Amount of unrealized gain (loss) recognized
	Three months ended June 30, 2014					Three months ended June 30, 2013
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(1,675	)		1,358	$	(20,138	)		18,853
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	1,384				$	2,228
Foreign exchange and other option and futures contracts (b)		(786	)				(1,225	)
Total	$	598				$	1,003

	Amount of unrealized gain (loss) recognized
	Six months ended June 30, 2014					Six months ended June 30, 2013
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(9,835	)		9,278	$	(29,011	)		27,753
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	1,082				$	3,197
Foreign exchange and other option and futures contracts (b)		(5,816	)				(1,608	)
Total	$	(4,734	)			$	1,589

(a) Reported as other revenues from operations.

(b) Reported as trading account and foreign exchange gains.

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Investment Securities - Changes in Credit Losses Associated with Debt Securities for Which OTTI Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Investments Debt And Equity Securities [Abstract]
Estimated credit losses - beginning balance	$ 187,114	$ 197,809
Additions for credit losses not previously recognized		9,800
Reductions for realized losses	(186,320)	(206,815)
Estimated credit losses - ending balance	$ 794	$ 794

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Loans and Leases and the Allowance for Credit Losses - Loan Modification Activities that were Considered Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014 Modification	Jun. 30, 2013 Modification	Jun. 30, 2014 Modification	Jun. 30, 2013 Modification
Financing Receivable, Modifications [Line Items]
Number of modifications	193	341	436	673
Pre-modification, Recorded investment	$ 57,384	$ 135,325	$ 89,914	$ 215,006
Post-modification, Recorded investment	57,297	130,897	89,797	210,557
Financial effects of modification, Recorded investment	(87)	(4,428)	(117)	(4,449)
Financial effects of modification, Interest	(1,011)	(1,404)	(1,880)	(2,288)
Principal deferral [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	21	15	51	39
Pre-modification, Recorded investment	4,414	4,870	19,368	6,876
Post-modification, Recorded investment	4,351	4,822	19,199	6,804
Financial effects of modification, Recorded investment	(63)	(48)	(169)	(72)
Principal deferral [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	11	5	24	13
Pre-modification, Recorded investment	8,327	15,549	15,371	34,027
Post-modification, Recorded investment	8,314	15,530	15,316	33,893
Financial effects of modification, Recorded investment	(13)	(19)	(55)	(134)
Principal deferral [Member] | Residential Builder and Developer [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1	7	1	15
Pre-modification, Recorded investment	1,398	17,496	1,398	18,853
Post-modification, Recorded investment	1,398	16,722	1,398	18,062
Financial effects of modification, Recorded investment		(774)		(791)
Principal deferral [Member] | Other commercial construction [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	2	2	3	2
Pre-modification, Recorded investment	6,407	364	6,558	364
Post-modification, Recorded investment	6,318	363	6,469	363
Financial effects of modification, Recorded investment	(89)	(1)	(89)	(1)
Principal deferral [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	8	16	15
Pre-modification, Recorded investment	142	1,216	1,744	1,782
Post-modification, Recorded investment	166	1,358	1,829	1,965
Financial effects of modification, Recorded investment	24	142	85	183
Principal deferral [Member] | Residential Alt-A [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	1	5	1
Pre-modification, Recorded investment	662	99	828	99
Post-modification, Recorded investment	698	102	900	102
Financial effects of modification, Recorded investment	36	3	72	3
Principal deferral [Member] | Home equity lines and loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		2	3	4
Pre-modification, Recorded investment		101	280	180
Post-modification, Recorded investment		103	280	182
Financial effects of modification, Recorded investment		2		2
Principal deferral [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	43	117	123	238
Pre-modification, Recorded investment	603	1,629	1,596	3,215
Post-modification, Recorded investment	603	1,629	1,596	3,215
Principal deferral [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	7	14	15	20
Pre-modification, Recorded investment	38	185	93	230
Post-modification, Recorded investment	38	185	93	230
Other [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1	1	1	2
Pre-modification, Recorded investment	19,593	1,460	19,593	48,660
Post-modification, Recorded investment	19,593	1,657	19,593	48,857
Financial effects of modification, Recorded investment		197		197
Other [Member] | Residential Builder and Developer [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		1		1
Pre-modification, Recorded investment		4,039		4,039
Post-modification, Recorded investment		3,888		3,888
Financial effects of modification, Recorded investment		(151)		(151)
Other [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications			1	1
Pre-modification, Recorded investment			188	195
Post-modification, Recorded investment			188	195
Other [Member] | Home equity lines and loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		1		1
Pre-modification, Recorded investment		106		106
Post-modification, Recorded investment		106		106
Other [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	8	28	19	45
Pre-modification, Recorded investment	47	73	108	232
Post-modification, Recorded investment	47	73	108	232
Other [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications			1	1
Pre-modification, Recorded investment			45	12
Post-modification, Recorded investment			45	12
Combination of concession types [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	2	5	3
Pre-modification, Recorded investment	9,795	1,490	9,836	1,832
Post-modification, Recorded investment	9,727	980	9,766	1,322
Financial effects of modification, Recorded investment	(68)	(510)	(70)	(510)
Financial effects of modification, Interest	(10)		(14)
Combination of concession types [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1		2	2
Pre-modification, Recorded investment	63		409	582
Post-modification, Recorded investment	61		462	581
Financial effects of modification, Recorded investment	(2)		53	(1)
Financial effects of modification, Interest	(9)		(113)	(56)
Combination of concession types [Member] | Residential Builder and Developer [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		2		3
Pre-modification, Recorded investment		13,879		15,580
Post-modification, Recorded investment		13,823		15,514
Financial effects of modification, Recorded investment		(56)		(66)
Financial effects of modification, Interest		(535)		(535)
Combination of concession types [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	8	18	22	38
Pre-modification, Recorded investment	923	69,210	3,111	71,659
Post-modification, Recorded investment	991	65,890	3,151	68,426
Financial effects of modification, Recorded investment	68	(3,320)	40	(3,233)
Financial effects of modification, Interest	(66)	(186)	(348)	(557)
Combination of concession types [Member] | Residential Alt-A [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	6	8	16	13
Pre-modification, Recorded investment	1,006	1,187	2,752	2,094
Post-modification, Recorded investment	1,029	1,294	2,765	2,219
Financial effects of modification, Recorded investment	23	107	13	125
Financial effects of modification, Interest	(220)	(278)	(281)	(388)
Combination of concession types [Member] | Home equity lines and loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	21	8	36	10
Pre-modification, Recorded investment	1,772	406	3,628	617
Post-modification, Recorded investment	1,772	406	3,628	617
Financial effects of modification, Interest	(204)	(64)	(376)	(97)
Combination of concession types [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	23	62	46	123
Pre-modification, Recorded investment	341	1,044	591	1,597
Post-modification, Recorded investment	341	1,044	591	1,597
Financial effects of modification, Interest	(36)	(87)	(62)	(129)
Combination of concession types [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	19	30	33	72
Pre-modification, Recorded investment	906	707	1,372	1,924
Post-modification, Recorded investment	906	707	1,372	1,924
Financial effects of modification, Interest	(276)	(234)	(464)	(501)
Interest rate reduction [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1		1
Pre-modification, Recorded investment	255		255
Post-modification, Recorded investment	252		252
Financial effects of modification, Recorded investment	(3)		(3)
Financial effects of modification, Interest	(48)		(48)
Interest rate reduction [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications			1
Pre-modification, Recorded investment			98
Post-modification, Recorded investment			104
Financial effects of modification, Recorded investment			6
Financial effects of modification, Interest			(32)
Interest rate reduction [Member] | Home equity lines and loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	5	1	5	1
Pre-modification, Recorded investment	341	99	341	99
Post-modification, Recorded investment	341	99	341	99
Financial effects of modification, Interest	(76)	(8)	(76)	(8)
Interest rate reduction [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	7	3	9
Pre-modification, Recorded investment	60	104	60	140
Post-modification, Recorded investment	60	104	60	140
Financial effects of modification, Interest	(3)	(10)	(3)	(15)
Interest rate reduction [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	1	3	1
Pre-modification, Recorded investment	291	12	291	12
Post-modification, Recorded investment	291	12	291	12
Financial effects of modification, Interest	$ (63)	$ (2)	$ (63)	$ (2)

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Fair Value Measurements - Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Mortgage-backed Securities, Privately issued [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 696	$ 993,247	$ 1,850	$ 1,023,886
Total gains (losses) realized/unrealized:
Included in earnings		(46,302)		(56,102)
Included in other comprehensive income	205	90,203	272	116,584
Sales		(978,608)		(978,608)
Settlements	(782)	(53,268)	(2,003)	(100,488)
Ending Balance	119	5,272	119	5,272
Other Assets and Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	12,589	36,119	3,941	47,859
Total gains (losses) realized/unrealized:
Included in earnings	31,517	15,500	53,900	58,812
Transfers in and/or out of Level 3	(22,083)	(44,211)	(35,818)	(99,263)
Ending Balance	22,023	7,408	22,023	7,408
Changes in unrealized gains included in earnings related to assets still held at end of period	20,215	4,123	24,099	5,132
Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	61,768	61,718	63,083	61,869
Total gains (losses) realized/unrealized:
Included in other comprehensive income	4,486	(1,277)	9,132	(537)
Settlements	(10,054)	(525)	(16,015)	(1,416)
Ending Balance	$ 56,200	$ 59,916	$ 56,200	$ 59,916

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CONSOLIDATED BALANCE SHEET (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Assets
Cash and due from banks	$ 1,827,197	$ 1,573,361
Interest-bearing deposits at banks	3,032,530	1,651,138
Federal funds sold	90,239	99,573
Trading account	313,325	376,131
Investment securities (includes pledged securities that can be sold or repledged of $1,620,148 at June 30, 2014; $1,696,438 at December 31, 2013)
Available for sale (cost: $7,753,752 at June 30, 2014; $4,444,365 at December 31, 2013)	8,008,779	4,531,786
Held to maturity (fair value: $3,765,849 at June 30, 2014; $3,860,127 at December 31, 2013)	3,760,665	3,966,130
Other (fair value: $350,751 at June 30, 2014; $298,581 at December 31, 2013)	350,751	298,581
Total investment securities	12,120,195	8,796,497
Loans and leases	64,980,824	64,325,783
Unearned discount	(233,131)	(252,624)
Loans and leases, net of unearned discount	64,747,693	64,073,159
Allowance for credit losses	(917,666)	(916,676)
Loans and leases, net	63,830,027	63,156,483
Premises and equipment	625,006	633,520
Goodwill	3,524,625	3,524,625
Core deposit and other intangible assets	49,555	68,851
Accrued interest and other assets	5,422,303	5,282,212
Total assets	90,835,002	85,162,391
Liabilities
Noninterest-bearing deposits	26,088,763	24,661,007
NOW accounts	2,007,336	1,989,441
Savings deposits	38,209,271	36,621,580
Time deposits	3,285,995	3,523,838
Deposits at Cayman Islands office	237,890	322,746
Total deposits	69,829,255	67,118,612
Federal funds purchased and agreements to repurchase securities	161,631	260,455
Accrued interest and other liabilities	1,283,430	1,368,922
Long-term borrowings	7,391,931	5,108,870
Total liabilities	78,666,247	73,856,859
Shareholders' equity
Preferred stock, $1.00 par, 1,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: 731,500 shares at June 30, 2014; 381,500 shares at December 31, 2013; Liquidation preference of $10,000 per share: 50,000 shares at June 30, 2014 and December 31, 2013	1,231,500	881,500
Common stock, $.50 par, 250,000,000 shares authorized, 131,911,359 shares issued at June 30, 2014; 130,516,364 shares issued at December 31, 2013	65,956	65,258
Common stock issuable, 41,635 shares at June 30, 2014; 47,231 shares at December 31, 2013	2,600	2,915
Additional paid-in capital	3,347,314	3,232,014
Retained earnings	7,481,077	7,188,004
Accumulated other comprehensive income (loss), net	40,308	(64,159)
Total shareholders' equity	12,168,755	11,305,532
Total liabilities and shareholders' equity	$ 90,835,002	$ 85,162,391

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Loans and Leases and the Allowance for Credit Losses - Summary of Changes in Accretable Yield for Acquired Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Purchased Impaired [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	$ 30,939	$ 33,728	$ 37,230	$ 42,252
Interest income	(5,106)	(9,747)	(11,434)	(18,451)
Reclassifications from nonaccretable balance, net	249	31,168	286	31,348
Other
Balance at end of period	26,082	55,149	26,082	55,149
Other [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	485,162	577,609	538,633	638,272
Interest income	(43,452)	(67,539)	(96,085)	(129,286)
Reclassifications from nonaccretable balance, net	774	111,702	774	122,519
Other	8,486	321	7,648	(9,412)
Balance at end of period	$ 450,970	$ 622,093	$ 450,970	$ 622,093

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CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities
Net income	$ 513,353	$ 622,579
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	62,000	95,000
Depreciation and amortization of premises and equipment	49,133	43,354
Amortization of capitalized servicing rights	34,868	30,653
Amortization of core deposit and other intangible assets	19,296	25,845
Provision for deferred income taxes	40,964	30,373
Asset write-downs	2,015	15,043
Net gain on sales of assets	(1,991)	(59,134)
Net change in accrued interest receivable, payable	10,036	(1,131)
Net change in other accrued income and expense	(82,817)	20,336
Net change in loans originated for sale	(192,521)	(220,784)
Net change in trading account assets and liabilities	15,168	14,362
Net cash provided by operating activities	469,504	616,496
Cash flows from investing activities
Proceeds from sales of investment securities Available for sale	16	1,081,496
Proceeds from sales of investment securities Other	734	5,439
Proceeds from maturities of investment securities Available for sale	375,372	652,074
Proceeds from maturities of investment securities Held to maturity	211,005	141,255
Purchases of investment securities Available for sale	(3,609,758)	(39,411)
Purchases of investment securities Held to maturity	(10,745)	(11,252)
Purchases of investment securities Other	(52,904)	(8,540)
Net increase in loans and leases	(566,803)	(228,853)
Net increase in interest-bearing deposits at banks	(1,381,392)	(2,425,409)
Capital expenditures, net	(37,747)	(43,663)
Net (increase) decrease in loan servicing advances	(257,704)	47,290
Other, net	16,990	38,072
Net cash used by investing activities	(5,312,936)	(791,502)
Cash flows from financing activities
Net increase in deposits	2,712,470	54,101
Net decrease in short-term borrowings	(98,824)	(766,742)
Proceeds from long-term borrowings	2,647,688	799,760
Payments on long-term borrowings	(360,345)	(257,178)
Proceeds from issuance of preferred stock	346,500
Dividends paid-common	(185,134)	(181,842)
Dividends paid-preferred	(29,348)	(26,725)
Other, net	54,927	41,519
Net cash provided (used) by financing activities	5,087,934	(337,107)
Net increase (decrease) in cash and cash equivalents	244,502	(512,113)
Cash and cash equivalents at beginning of period	1,672,934	1,986,615
Cash and cash equivalents at end of period	1,917,436	1,474,502
Supplemental disclosure of cash flow information
Interest received during the period	1,420,720	1,459,142
Interest paid during the period	120,109	151,737
Income taxes paid during the period	198,028	226,406
Supplemental schedule of noncash investing and financing activities
Securitization of residential mortgage loans allocated to Available-for-sale investment securities	76,097
Securitization of residential mortgage loans allocated to Held to maturity investment securities		917,045
Securitization of residential mortgage loans allocated to capitalized servicing rights	976	8,907
Real estate acquired in settlement of loans	$ 18,677	$ 15,502

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Pension Plans and Other Postretirement Benefits - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Compensation And Retirement Disclosure [Abstract]
Defined contribution pension and retirement savings plans total expense	$ 12,673,000	$ 12,563,000	$ 28,405,000	$ 28,318,000

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Segment information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Information about Company's Segments

Information about the Company’s segments is presented in the following table:

	Three months ended June 30
	2014								2013
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	104,688		1,220			27,760			106,486			1,319			30,562
Commercial Banking		252,496		1,356			105,358			252,907			1,315			87,220
Commercial Real Estate		164,912		525			77,526			187,773			554			89,868
Discretionary Portfolio		29,912		(5,282	)		14,980			(14,109	)		(10,015	)		(8,036	)
Residential Mortgage Banking		110,751		11,772			27,712			111,764			21,589			34,143
Retail Banking		268,494		3,897			32,034			292,837			3,598			51,500
All Other		194,273		(13,488	)		(1,034	)		248,618			(18,360	)		63,209
Total	$	1,125,526		—			284,336			1,186,276			—			348,466

	Six months ended June 30
	2014								2013
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	206,987		2,277			56,358		$	211,904			2,513			63,123
Commercial Banking		501,082		2,553			205,123			502,757			2,665			194,607
Commercial Real Estate		323,272		873			152,087			353,066			2,106			166,376
Discretionary Portfolio		54,569		(10,321	)		26,259			(2,068	)		(18,616	)		(6,190	)
Residential Mortgage Banking		205,339		21,520			47,123			231,663			40,287			68,504
Retail Banking		530,382		7,402			61,745			584,022			6,855			103,850
All Other		380,435		(24,304	)		(35,342	)		393,864			(35,810	)		32,309
Total	$	2,202,066		—			513,353		$	2,275,208			—			622,579

Summary of Segment Information

	Average total assets
	Six months ended June 30				Year ended December 31
	2014		2013		2013
	(in millions)
Business Banking	$	5,286		5,010		5,080
Commercial Banking		22,742		21,446		21,655
Commercial Real Estate		16,878		17,122		17,150
Discretionary Portfolio		19,417		16,278		16,480
Residential Mortgage Banking		3,226		2,752		2,858
Retail Banking		10,229		11,357		10,997
All Other		10,500		8,672		9,442
Total	$	88,278		82,637		83,662

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $5,849,000 and $6,217,000 for the three-month periods ended June 30, 2014 and 2013, respectively, and $11,794,000 and $12,667,000 for the six-month periods ended June 30, 2014 and 2013, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

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Derivative Financial Instruments - Additional Information (Detail) (USD $)				3 Months Ended		6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Credit Risk Derivative [Member]	Jun. 30, 2014 Interest rate swap agreements [Member]	Jun. 30, 2013 Interest rate swap agreements [Member]	Jun. 30, 2014 Interest rate swap agreements [Member]	Jun. 30, 2013 Interest rate swap agreements [Member]	Jun. 30, 2014 Interest rate contracts [Member]	Dec. 31, 2013 Interest rate contracts [Member]	Jun. 30, 2014 Foreign Currency And Other Option And Futures Contracts [Member]	Dec. 31, 2013 Foreign Currency And Other Option And Futures Contracts [Member]
Derivative [Line Items]
Increase in net interest income due to interest rate swap agreements				$ 12,000,000	$ 10,000,000	$ 23,000,000	$ 19,000,000
Fair value hedges				1,400,000,000		1,400,000,000
Senior notes, anticipated future issuance				300,000,000		300,000,000
Notional value of interest rate contracts entered into trading purposes	1,700,000,000							17,600,000,000	17,400,000,000	866,000,000	1,400,000,000
Net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans	31,000,000	23,000,000
Aggregate fair value of derivative financial instruments in a liability position	177,000,000	194,000,000
Net liability positions with counterparties	107,000,000	107,000,000
Post collateral requirements relating to positions	92,000,000	95,000,000
Aggregate fair value of derivative financial instruments in a net liability position			28,000,000
Fair value of collateral already posted for derivative financial instruments			18,000,000
Fair value of additional collateral to be posted for derivative financial instruments			10,000,000
Aggregate fair value of derivative financial instruments in asset position	133,000,000	183,000,000
Net asset positions with counterparties	63,000,000	95,000,000
Counterparties posted collateral relating to positions	$ 63,000,000	$ 93,000,000

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Segment information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment information

14. Segment information

Reportable segments have been determined based upon the Company’s internal profitability reporting system, which is organized by strategic business unit. Certain strategic business units have been combined for segment information reporting purposes where the nature of the products and services, the type of customer and the distribution of those products and services are similar. The reportable segments are Business Banking, Commercial Banking, Commercial Real Estate, Discretionary Portfolio, Residential Mortgage Banking and Retail Banking.

The financial information of the Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 2013. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. As also described in note 22 to the Company’s 2013 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Company’s reportable segments, but are included in the “All Other” category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment.

Information about the Company’s segments is presented in the following table:

	Three months ended June 30
	2014								2013
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	104,688		1,220			27,760			106,486			1,319			30,562
Commercial Banking		252,496		1,356			105,358			252,907			1,315			87,220
Commercial Real Estate		164,912		525			77,526			187,773			554			89,868
Discretionary Portfolio		29,912		(5,282	)		14,980			(14,109	)		(10,015	)		(8,036	)
Residential Mortgage Banking		110,751		11,772			27,712			111,764			21,589			34,143
Retail Banking		268,494		3,897			32,034			292,837			3,598			51,500
All Other		194,273		(13,488	)		(1,034	)		248,618			(18,360	)		63,209
Total	$	1,125,526		—			284,336			1,186,276			—			348,466

	Six months ended June 30
	2014								2013
	Total revenues(a)		Inter- segment revenues			Net income (loss)			Total revenues(a)			Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	206,987		2,277			56,358		$	211,904			2,513			63,123
Commercial Banking		501,082		2,553			205,123			502,757			2,665			194,607
Commercial Real Estate		323,272		873			152,087			353,066			2,106			166,376
Discretionary Portfolio		54,569		(10,321	)		26,259			(2,068	)		(18,616	)		(6,190	)
Residential Mortgage Banking		205,339		21,520			47,123			231,663			40,287			68,504
Retail Banking		530,382		7,402			61,745			584,022			6,855			103,850
All Other		380,435		(24,304	)		(35,342	)		393,864			(35,810	)		32,309
Total	$	2,202,066		—			513,353		$	2,275,208			—			622,579

	Average total assets
	Six months ended June 30				Year ended December 31
	2014		2013		2013
	(in millions)
Business Banking	$	5,286		5,010		5,080
Commercial Banking		22,742		21,446		21,655
Commercial Real Estate		16,878		17,122		17,150
Discretionary Portfolio		19,417		16,278		16,480
Residential Mortgage Banking		3,226		2,752		2,858
Retail Banking		10,229		11,357		10,997
All Other		10,500		8,672		9,442
Total	$	88,278		82,637		83,662

(a) Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer pricing and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $5,849,000 and $6,217,000 for the three-month periods ended June 30, 2014 and 2013, respectively, and $11,794,000 and $12,667,000 for the six-month periods ended June 30, 2014 and 2013, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

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Acquisitions - Additional Information (Detail) (USD $)				3 Months Ended		6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Aug. 27, 2012	Jun. 30, 2014 Hudson City [Member]	Jun. 30, 2013 Hudson City [Member]	Jun. 30, 2014 Hudson City [Member]	Jun. 30, 2013 Hudson City [Member]	Aug. 27, 2012 Common stock [Member]	Aug. 27, 2012 Cash [Member]
Business Acquisition [Line Items]
Purchase consideration per common share			0.08403
Percentage of total consideration								60.00%	40.00%
Total consideration to be paid	$ 5,400,000,000
Assets	90,835,002,000	85,162,391,000		37,700,000,000		37,700,000,000
Loans				23,300,000,000		23,300,000,000
Investment securities	12,120,195,000	8,796,497,000		8,200,000,000		8,200,000,000
Liabilities	78,666,247,000	73,856,859,000		32,900,000,000		32,900,000,000
Deposits	69,829,255,000	67,118,612,000		20,500,000,000		20,500,000,000
Merger-related expenses				$ 0	$ 7,632,000	$ 0	$ 12,364,000

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Significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Consolidation

The consolidated financial statements of M&T Bank Corporation (“M&T”) and subsidiaries (“the Company”) were compiled in accordance with generally accepted accounting principles (“GAAP”) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2013 Annual Report. In the opinion of management, all adjustments necessary for a fair presentation have been made and were all of a normal recurring nature.

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Statement of Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	$ 598	$ 1,003	$ (4,734)	$ 1,589
Interest rate contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	1,384	2,228	1,082	3,197
Foreign exchange and other option and futures contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	(786)	(1,225)	(5,816)	(1,608)
Interest rate swap agreements [Member] | Fixed rate long-term borrowings [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives in fair value hedging relationships, Derivatives	(1,675)	(20,138)	(9,835)	(29,011)
Derivatives in fair value hedging relationships, Hedged item	$ 1,358	$ 18,853	$ 9,278	$ 27,753

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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (USD $) In Thousands, unless otherwise specified	Total	Preferred stock [Member]	Common stock [Member]	Common stock issuable [Member]	Additional paid-in capital [Member]	Retained earnings [Member]	Accumulated other comprehensive income (loss), net [Member]
Beginning Balance at Dec. 31, 2012	$ 10,202,593	$ 872,500	$ 64,088	$ 3,473	$ 3,025,520	$ 6,477,276	$ (240,264)
Total comprehensive income	635,072					622,579	12,493
Preferred stock cash dividends	(26,725)					(26,725)
Amortization of preferred stock discount		4,296				(4,296)
Exercise of stock warrants into common stock			93		(93)
Stock-based compensation plans:
Compensation expense, net	21,209		153		21,056
Exercises of stock options, net	63,871		366		63,505
Directors' stock plan	797		4		793
Deferred compensation plans, net, including dividend equivalents	(110)		5	(613)	564	(66)
Other	1,321				1,321
Common stock cash dividends-$1.40 per share	(181,698)					(181,698)
Ending Balance at Jun. 30, 2013	10,716,330	876,796	64,709	2,860	3,112,666	6,887,070	(227,771)
Beginning Balance at Dec. 31, 2013	11,305,532	881,500	65,258	2,915	3,232,014	7,188,004	(64,159)
Total comprehensive income	617,820					513,353	104,467
Preferred stock cash dividends	(35,117)					(35,117)
Issuance of Series E preferred stock	346,500	350,000			(3,500)
Exercise of stock warrants into common stock			75		(75)
Stock-based compensation plans:
Compensation expense, net	23,381		131		23,250
Exercises of stock options, net	84,444		442		84,002
Stock purchase plan	9,588		43		9,545
Directors' stock plan	879		4		875
Deferred compensation plans, net, including dividend equivalents	(61)		3	(315)	309	(58)
Other	894				894
Common stock cash dividends-$1.40 per share	(185,105)					(185,105)
Ending Balance at Jun. 30, 2014	$ 12,168,755	$ 1,231,500	$ 65,956	$ 2,600	$ 3,347,314	$ 7,481,077	$ 40,308

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CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Pledged securities that can be sold or repledged	$ 1,620,148	$ 1,696,438
Investment securities, available for sale, amortized cost	7,753,752	4,444,365
Investment securities, held to maturity, fair value	3,765,849	3,860,127
Other, fair value	$ 350,751	$ 298,581
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value	$ 0.50	$ 0.50
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	131,911,359	130,516,364
Common stock issuable, shares	41,635	47,231
Series A And Series C [Member]
Preferred stock, shares issued	731,500	381,500
Preferred stock, shares outstanding	731,500	381,500
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Series D Preferred Stock [Member]
Preferred stock, shares issued	50,000	50,000
Preferred stock, shares outstanding	50,000	50,000
Preferred stock, liquidation preference per share	$ 10,000	$ 10,000

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Comprehensive income

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Comprehensive income

9. Comprehensive income

The following tables display the components of other comprehensive income (loss) and amounts reclassified from accumulated other comprehensive income (loss) to net income:

	Investment Securities				Defined benefit plans			Other			Total amount before tax			Income tax			Net
	With OTTI		All other
	(in thousands)
Balance—January 1, 2014	$	37,255		18,450		(161,617	)		115		$	(105,797	)		41,638		$	(64,159	)
Other comprehensive income before reclassifications: Unrealized holding gains, net		10,842		156,764		—			—			167,606			(65,774	)		101,832
Foreign currency translation adjustment		—		—		—			479			479			(166	)		313
Unrealized losses on cash flow hedges		—		—		—			(1,170	)		(1,170	)		459			(711	)
Total other comprehensive income before reclassifications		10,842		156,764		—			(691	)		166,915			(65,481	)		101,434
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		1		1,702		—			—			1,703	(a)		(669	)		1,034
Amortization of prior service credit		—		—		(3,955	)		—			(3,955	)(d)		1,552			(2,403	)
Amortization of actuarial losses		—		—		7,247			—			7,247	(d)		(2,845	)		4,402
Total reclassifications		1		1,702		3,292			—			4,995			(1,962	)		3,033
Total gain (loss) during the period		10,843		158,466		3,292			(691	)		171,910			(67,443	)		104,467
Balance—June 30, 2014	$	48,098		176,916		(158,325	)		(576	)	$	66,113			(25,805	)	$	40,308

	Investment Securities						Defined benefit plans			Other			Total amount before tax			Income tax			Net
	With OTTI			All other
	(in thousands)
Balance—January 1, 2013	$	(91,835	)		152,199			(455,590	)		(431	)	$	(395,657	)		155,393		$	(240,264	)
Other comprehensive income before reclassifications:
Unrealized holding gains(losses), net		55,473			(95,167	)		—			—			(39,694	)		15,557			(24,137	)
Foreign currency translation adjustment		—			—			—			(1,644	)		(1,644	)		598			(1,046	)
Total other comprehensive income before reclassifications		55,473			(95,167	)		—			(1,644	)		(41,338	)		16,155			(25,183	)
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		109			2,262			—			—			2,371	(a)		(931	)		1,440
OTTI charges recognized in net income		9,800			—			—			—			9,800	(b)		(3,847	)		5,953
Losses (gains) realized in net income		41,217			(8,129	)		—			—			33,088	(c)		(12,987	)		20,101
Amortization of prior service credit		—			—			(3,957	)		—			(3,957	)(d)		1,553			(2,404	)
Amortization of actuarial losses		—			—			20,718			—			20,718	(d)		(8,132	)		12,586
Total reclassifications		51,126			(5,867	)		16,761			—			62,020			(24,344	)		37,676
Total gain (loss) during the period		106,599			(101,034	)		16,761			(1,644	)		20,682			(8,189	)		12,493
Balance—June 30, 2013	$	14,764			51,165			(438,829	)		(2,075	)	$	(374,975	)		147,204		$	(227,771	)

(a) Included in interest income

(b) Included in OTTI losses recognized in earnings

(c) Included in gain (loss) on bank investment securities

(d) Included in salaries and employee benefits expense

Accumulated other comprehensive income (loss), net consisted of the following:

	Investment securities				Defined benefit plans			Other			Total
	With OTTI		All other
Balance—December 31, 2013	$	22,632		11,294		(98,182	)		97		$	(64,159	)
Net gain (loss) during period		6,587		96,279		1,999			(398	)		104,467
Balance—June 30, 2014	$	29,219		107,573		(96,183	)		(301	)	$	40,308

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Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Jul. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Registrant Name	M&T BANK CORP
Entity Central Index Key	0000036270
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		131,965,978

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Derivative financial instruments

6 Months Ended

Jun. 30, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative financial instruments

10. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting and collateral provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts is not significant as of June 30, 2014.

The net effect of interest rate swap agreements was to increase net interest income by $12 million and $10 million for the three-month periods ended June 30, 2014 and 2013, respectively, and $23 million and $19 million for the six-month periods ended June 30, 2014 and 2013, respectively.

At June 30, 2014, interest rate swap agreements were used as fair value hedges for approximately $1.4 billion of outstanding fixed rate long-term borrowings. Also at June 30, 2014, the Company had entered into forward-starting interest rate swap agreements used to hedge the variability in the interest payments anticipated to be made upon the future issuance of $300 million of senior notes. These forward-starting interest rate swap agreements were terminated upon the issuance of such notes in July 2014. Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:

	Notional amount		Average maturity		Weighted- average rate
					Fixed			Variable
	(in thousands)		(in years)
June 30, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		3.2		4.42	%		1.18	%
Cash flow hedges:
Interest payments on forecasted issuance of long-term borrowings (b)		300,000		5.1		1.82	%		0.23	%
	$	1,700,000		3.5		3.96	%		1.02	%
December 31, 2013
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		3.7		4.42	%		1.20	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

(b) Under the terms of this agreement, the Company was to receive settlement amounts at a variable rate and pay at a fixed rate.

The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in fair value of certain commitments to originate real estate loans for sale.

        Derivative financial instruments used for trading purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures. Interest rate contracts entered into for trading purposes had notional values of $17.6 billion and $17.4 billion at June 30, 2014 and December 31, 2013, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading purposes aggregated $866 million and $1.4 billion at June 30, 2014 and December 31, 2013, respectively.

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:

	Asset derivatives				Liability derivatives
	Fair value				Fair value
	June 30, 2014		December 31, 2013		June 30, 2014		December 31, 2013
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	93,040		102,875	$	—		—
Commitments to sell real estate loans (a)		1,032		6,957		6,412		487
		94,072		109,832		6,412		487
Cash flow hedges:
Interest rate swap agreements (a)		—		—		1,170		—
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		22,215		7,616		192		3,675
Commitments to sell real estate loans (a)		1,431		6,120		6,883		230
Trading:
Interest rate contracts (b)		234,436		274,864		194,393		234,455
Foreign exchange and other option and futures contracts (b)		7,784		15,831		7,766		15,342
		265,866		304,431		209,234		253,702
Total derivatives	$	359,938		414,263	$	216,816		254,189

(a) Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b) Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.

	Amount of unrealized gain (loss) recognized
	Three months ended June 30, 2014					Three months ended June 30, 2013
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(1,675	)		1,358	$	(20,138	)		18,853
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	1,384				$	2,228
Foreign exchange and other option and futures contracts (b)		(786	)				(1,225	)
Total	$	598				$	1,003

	Amount of unrealized gain (loss) recognized
	Six months ended June 30, 2014					Six months ended June 30, 2013
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(9,835	)		9,278	$	(29,011	)		27,753
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	1,082				$	3,197
Foreign exchange and other option and futures contracts (b)		(5,816	)				(1,608	)
Total	$	(4,734	)			$	1,589

(a) Reported as other revenues from operations.

(b) Reported as trading account and foreign exchange gains.

In addition, the Company also has commitments to sell and commitments to originate residential and commercial real estate loans for sale that are considered derivatives. The Company designates certain of the commitments to sell real estate loans as fair value hedges of real estate loans held for sale. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. As a result of these activities, net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans were approximately $31 million and $23 million at June 30, 2014 and December 31, 2013, respectively. Changes in unrealized gains and losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied.

The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions.

The aggregate fair value of derivative financial instruments in a liability position, which are subject to enforceable master netting arrangements, was $177 million and $194 million at June 30, 2014 and December 31, 2013, respectively. After consideration of such netting arrangements, the net liability positions with counterparties aggregated $107 million at each of June 30, 2014 and December 31, 2013. The Company was required to post collateral relating to those positions of $92 million and $95 million at June 30, 2014 and December 31, 2013, respectively. Certain of the Company’s derivative financial instruments contain provisions that require the Company to maintain specific credit ratings from credit rating agencies to avoid higher collateral posting requirements. If the Company’s debt rating were to fall below specified ratings, the counterparties of the derivative financial instruments could demand immediate incremental collateralization on those instruments in a net liability position. The aggregate fair value of all derivative financial instruments with such credit risk-related contingent features in a net liability position on June 30, 2014 was $28 million for which the Company had posted collateral of $18 million in the normal course of business. If the credit risk-related contingent features had been triggered on June 30, 2014, the maximum amount of additional collateral the Company would have been required to post to counterparties was $10 million.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $133 million and $183 million at June 30, 2014 and December 31, 2013, respectively. After consideration of such netting arrangements, the net asset positions with counterparties aggregated $63 million and $95 million at June 30, 2014 and December 31, 2013, respectively. Counterparties posted collateral relating to those positions of $63 million and $93 million at June 30, 2014 and December 31, 2013, respectively. Trading account interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and often contain collateral provisions.

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Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Bayview Lending Group And Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Outstanding principal balances of mortgage servicing rights	$ 5,200,000,000		$ 5,200,000,000		$ 5,500,000,000
Revenues from servicing	7,000,000	8,000,000	14,000,000	16,000,000
Bayview Lending Group [Member]
Schedule of Equity Method Investments [Line Items]
Minority interest in Bayview Lending Group LLC	20.00%		20.00%
Carrying value of minority interest investment in Bayview Lending Group LLC	56,000,000		56,000,000
Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Revenues from servicing	27,000,000	2,000,000	53,000,000	4,000,000
Outstanding principal balances of residential mortgage loans from Bayview Financial	44,600,000,000		44,600,000,000		45,600,000,000
Investment securities in held-to-maturity portfolio securitized by Bayview Financial	$ 210,000,000		$ 210,000,000		$ 220,000,000

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CONSOLIDATED STATEMENT OF INCOME (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Interest income
Loans and leases, including fees	$ 645,029	$ 705,395	$ 1,290,251	$ 1,387,850
Investment securities
Fully taxable	85,210	41,293	159,109	86,053
Exempt from federal taxes	1,293	1,777	2,797	3,606
Deposits at banks	2,535	1,455	4,419	1,722
Other	223	287	666	951
Total interest income	734,290	750,207	1,457,242	1,480,182
Interest expense
NOW accounts	330	321	627	643
Savings deposits	11,181	13,790	22,782	27,827
Time deposits	3,855	7,484	7,795	15,680
Deposits at Cayman Islands office	181	200	389	588
Short-term borrowings	25	96	57	327
Long-term borrowings	49,604	50,729	100,045	101,480
Total interest expense	65,176	72,620	131,695	146,545
Net interest income	669,114	677,587	1,325,547	1,333,637
Provision for credit losses	30,000	57,000	62,000	95,000
Net interest income after provision for credit losses	639,114	620,587	1,263,547	1,238,637
Other income
Mortgage banking revenues	95,656	91,262	175,705	184,365
Service charges on deposit accounts	107,368	111,717	211,566	222,666
Trust income	129,893	124,728	251,145	246,331
Brokerage services income	17,487	17,258	33,987	32,969
Trading account and foreign exchange gains	8,042	9,224	14,489	18,151
Gain on bank investment securities		56,457		56,457
Total other-than-temporary impairment ("OTTI") losses				(1,884)
Portion of OTTI losses recognized in other comprehensive income (before taxes)				(7,916)
Net OTTI losses recognized in earnings				(9,800)
Equity in earnings of Bayview Lending Group LLC	(4,055)	(2,453)	(8,509)	(6,109)
Other revenues from operations	102,021	100,496	198,136	196,541
Total other income	456,412	508,689	876,519	941,571
Other expense
Salaries and employee benefits	339,713	323,136	711,039	679,687
Equipment and net occupancy	68,084	64,278	139,251	129,437
Printing, postage and supplies	9,180	10,298	20,136	20,997
Amortization of core deposit and other intangible assets	9,234	12,502	19,296	25,845
FDIC assessments	15,155	17,695	30,643	37,133
Other costs of operations	239,828	170,682	463,100	341,088
Total other expense	681,194	598,591	1,383,465	1,234,187
Income before taxes	414,332	530,685	756,601	946,021
Income taxes	129,996	182,219	243,248	323,442
Net income	284,336	348,466	513,353	622,579
Net income available to common shareholders
Basic	260,680	328,538	472,404	583,597
Diluted	$ 260,695	$ 328,557	$ 472,429	$ 583,633
Net income per common share
Basic	$ 1.99	$ 2.56	$ 3.62	$ 4.56
Diluted	$ 1.98	$ 2.55	$ 3.59	$ 4.53
Cash dividends per common share	$ 0.70	$ 0.70	$ 1.40	$ 1.40
Average common shares outstanding
Basic	130,856	128,252	130,536	127,962
Diluted	131,828	129,017	131,479	128,828

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Loans and leases and the allowance for credit losses

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Loans and leases and the allowance for credit losses

4. Loans and leases and the allowance for credit losses

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date and included in the consolidated balance sheet follow:

	June 30,		December 31,
	2014		2013
	(in thousands)
Outstanding principal balance	$	3,828,214		4,656,811
Carrying amount:
Commercial, financial, leasing, etc.		396,166		580,685
Commercial real estate		1,285,386		1,541,368
Residential real estate		515,791		576,473
Consumer		1,051,728		1,308,926
	$	3,249,071		4,007,452

Purchased impaired loans included in the table above totaled $283 million at June 30, 2014 and $331 million at December 31, 2013, representing less than 1% of the Company’s assets as of each date. A summary of changes in the accretable yield for acquired loans for the three months and six months ended June 30, 2014 and 2013 follows:

	Three months ended June 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	30,939			485,162		$	33,728			577,609
Interest income		(5,106	)		(43,452	)		(9,747	)		(67,539	)
Reclassifications from nonaccretable balance, net		249			774			31,168			111,702
Other (a)		—			8,486			—			321
Balance at end of period	$	26,082			450,970		$	55,149			622,093

	Six months ended June 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	37,230			538,633		$	42,252			638,272
Interest income		(11,434	)		(96,085	)		(18,451	)		(129,286	)
Reclassifications from nonaccretable balance, net		286			774			31,348			122,519
Other (a)		—			7,648			—			(9,412	)
Balance at end of period	$	26,082			450,970		$	55,149			622,093

(a) Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

A summary of current, past due and nonaccrual loans as of June 30, 2014 and December 31, 2013 follows:

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
	(in thousands)
June 30, 2014
Commercial, financial, leasing, etc.	$	18,831,026		56,292		3,910		5,769		16,702		192,193	$	19,105,892
Real estate:
Commercial		21,335,953		142,904		9,862		36,554		82,554		188,951		21,796,778
Residential builder and developer		1,203,959		10,417		—		9,505		111,937		83,624		1,419,442
Other commercial construction		3,075,240		11,764		—		4,018		43,511		23,521		3,158,054
Residential		7,499,250		261,083		270,492		42,245		25,231		198,816		8,297,117
Residential Alt-A		258,899		22,064		—		—		—		78,686		359,649
Consumer:
Home equity lines and loans		5,917,670		34,440		—		25,577		2,582		83,991		6,064,260
Automobile		1,621,311		23,629		—		218		—		16,075		1,661,233
Other		2,821,175		34,370		4,752		10,694		—		14,277		2,885,268
Total	$	62,564,483		596,963		289,016		134,580		282,517		880,134	$	64,747,693

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
					(in thousands)
December 31, 2013
Commercial, financial, leasing, etc.	$	18,489,474		77,538		4,981		6,778		15,706		110,739	$	18,705,216
Real estate:
Commercial		21,236,071		145,749		63,353		35,603		88,034		173,048		21,741,858
Residential builder and developer		1,025,984		8,486		141		7,930		137,544		96,427		1,276,512
Other commercial construction		2,986,598		42,234		—		8,031		57,707		35,268		3,129,838
Residential		7,630,368		295,131		294,649		43,700		29,184		252,805		8,545,837
Residential Alt-A		283,253		18,009		—		—		—		81,122		382,384
Consumer:
Home equity lines and loans		5,972,365		40,537		—		27,754		2,617		78,516		6,121,789
Automobile		1,314,246		29,144		—		366		—		21,144		1,364,900
Other		2,726,522		47,830		5,386		—		—		25,087		2,804,825
Total	$	61,664,881		704,658		368,510		130,162		330,792		874,156	$	64,073,159

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and were recorded at fair value.

One-to-four family residential mortgage loans originated for sale were $419 million and $401 million at June 30, 2014 and December 31, 2013, respectively. Commercial mortgage loans held for sale were $205 million at June 30, 2014 and $68 million at December 31, 2013.

Changes in the allowance for credit losses for the three months ended June 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	276,835			324,805			77,062			162,134			75,932		$	916,768
Provision for credit losses		25,556			(12,229	)		(1,957	)		18,676			(46	)		30,000
Net charge-offs
Charge-offs		(14,142	)		(2,814	)		(5,478	)		(19,404	)		—			(41,838	)
Recoveries		4,002			1,492			2,777			4,465			—			12,736
Net charge-offs		(10,140	)		(1,322	)		(2,701	)		(14,939	)		—			(29,102	)
Ending balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666

Changes in the allowance for credit losses for the three months ended June 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	257,851			328,016			90,122			176,793			74,335		$	927,117
Provision for credit losses		55,647			(10,913	)		(1,438	)		13,707			(3	)		57,000
Net charge-offs
Charge-offs		(46,312	)		(4,204	)		(5,092	)		(21,018	)		—			(76,626	)
Recoveries		1,681			11,365			1,719			4,809			—			19,574
Net charge-offs		(44,631	)		7,161			(3,373	)		(16,209	)		—			(57,052	)
Ending balance	$	268,867			324,264			85,311			174,291			74,332		$	927,065

Changes in the allowance for credit losses for the six months ended June 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		38,154			(12,113	)		2,271			32,817			871		62,000
Net charge-offs
Charge-offs		(28,951	)		(6,300	)		(12,931	)		(41,095	)		—		(89,277	)
Recoveries		9,665			4,689			4,408			9,505			—		28,267
Net charge-offs		(19,286	)		(1,611	)		(8,523	)		(31,590	)		—		(61,010	)
Ending balance	$	292,251			311,254			72,404			165,871			75,886	$	917,666

Changes in the allowance for credit losses for the six months ended June 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	246,759			337,101			88,807			179,418			73,775	$	925,860
Provision for credit losses		73,527			(11,225	)		3,598			28,543			557		95,000
Net charge-offs
Charge-offs		(55,856	)		(13,792	)		(13,263	)		(42,663	)		—		(125,574	)
Recoveries		4,437			12,180			6,169			8,993			—		31,779
Net charge-offs		(51,419	)		(1,612	)		(7,094	)		(33,670	)		—		(93,795	)
Ending balance	$	268,867			324,264			85,311			174,291			74,332	$	927,065

Despite the above allocation, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type.

In establishing the allowance for credit losses, the Company estimates losses attributable to specific troubled credits identified through both normal and detailed or intensified credit review processes and also estimates losses inherent in other loans and leases on a collective basis. For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolio by loan type. The amounts of loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial and commercial real estate loans that are in nonaccrual status and by applying loss factors to groups of loan balances based on loan type and management’s classification of such loans under the Company’s loan grading system. Measurement of the specific loss components is typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. In determining the allowance for credit losses, the Company utilizes a loan grading system which is applied to commercial and commercial real estate credits on an individual loan basis. Loan officers are responsible for continually assigning grades to these loans based on standards outlined in the Company’s Credit Policy. Internal loan grades are also monitored by the Company’s loan review department to ensure consistency and strict adherence to the prescribed standards. Loan grades are assigned loss component factors that reflect the Company’s loss estimate for each group of loans and leases. Factors considered in assigning loan grades and loss component factors include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information; levels of and trends in portfolio charge-offs and recoveries; levels of and trends in portfolio delinquencies and impaired loans; changes in the risk profile of specific portfolios; trends in volume and terms of loans; effects of changes in credit concentrations; and observed trends and practices in the banking industry. As updated appraisals are obtained on individual loans or other events in the market place indicate that collateral values have significantly changed, individual loan grades are adjusted as appropriate. Changes in other factors cited may also lead to loan grade changes at any time. Except for consumer and residential mortgage loans that are considered smaller balance homogenous loans and acquired loans that are evaluated on an aggregated basis, the Company considers a loan to be impaired for purposes of applying GAAP when, based on current information and events, it is probable that the Company will be unable to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days. Regardless of loan type, the Company considers a loan to be impaired if it qualifies as a troubled debt restructuring. Modified loans, including smaller balance homogenous loans, that are considered to be troubled debt restructurings are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows.

The following tables provide information with respect to loans and leases that were considered impaired as of June 30, 2014 and December 31, 2013 and for the three months and six months ended June 30, 2014 and June 30, 2013:

	June 30, 2014						December 31, 2013
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	165,446		189,110		39,874		90,293		112,092		24,614
Real estate:
Commercial		95,543		112,623		16,330		113,570		132,325		19,520
Residential builder and developer		28,048		36,634		1,694		33,311		55,122		4,379
Other commercial construction		71,379		74,401		4,883		86,260		90,515		4,022
Residential		90,895		109,723		4,103		96,508		114,521		7,146
Residential Alt-A		108,426		123,349		12,000		111,911		124,528		14,000
Consumer:
Home equity lines and loans		19,358		20,424		5,877		13,672		14,796		3,312
Automobile		35,426		35,426		9,248		40,441		40,441		11,074
Other		18,561		18,561		4,831		17,660		17,660		4,541
		633,082		720,251		98,840		603,626		702,000		92,608
With no related allowance recorded:
Commercial, financial, leasing, etc.		52,913		55,167		—		28,093		33,095		—
Real estate:
Commercial		102,890		124,701		—		65,271		84,333		—
Residential builder and developer		66,149		99,746		—		72,366		104,768		—
Other commercial construction		9,453		14,306		—		7,369		11,493		—
Residential		19,681		29,512		—		84,144		95,358		—
Residential Alt-A		24,523		44,784		—		28,357		52,211		—
		275,609		368,216		—		285,600		381,258		—
Total:
Commercial, financial, leasing, etc.		218,359		244,277		39,874		118,386		145,187		24,614
Real estate:
Commercial		198,433		237,324		16,330		178,841		216,658		19,520
Residential builder and developer		94,197		136,380		1,694		105,677		159,890		4,379
Other commercial construction		80,832		88,707		4,883		93,629		102,008		4,022
Residential		110,576		139,235		4,103		180,652		209,879		7,146
Residential Alt-A		132,949		168,133		12,000		140,268		176,739		14,000
Consumer:
Home equity lines and loans		19,358		20,424		5,877		13,672		14,796		3,312
Automobile		35,426		35,426		9,248		40,441		40,441		11,074
Other		18,561		18,561		4,831		17,660		17,660		4,541
Total	$	908,691		1,088,467		98,840		889,226		1,083,258		92,608

	Three months ended June 30, 2014						Three months ended June 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	150,625		220		220		183,544		3,408		3,408
Real estate:
Commercial		207,633		869		869		201,236		409		409
Residential builder and developer		91,614		39		39		162,567		518		384
Other commercial construction		77,801		356		356		97,975		2,479		2,479
Residential		119,133		5,056		4,468		185,751		1,934		1,401
Residential Alt-A		134,895		1,733		660		151,977		1,670		516
Consumer:
Home equity lines and loans		18,762		200		72		12,619		165		39
Automobile		36,631		589		74		44,641		740		131
Other		18,309		166		49		15,564		156		49
Total	$	855,403		9,228		6,807		1,055,874		11,479		8,816
	Six months ended June 30, 2014						Six months ended June 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	142,466		768		768		172,637		5,842		5,842
Real estate:
Commercial		196,529		1,795		1,795		197,546		712		712
Residential builder and developer		96,434		113		113		173,535		658		449
Other commercial construction		82,546		1,443		1,443		98,160		3,114		3,114
Residential		146,651		6,456		5,370		186,582		3,404		2,323
Residential Alt-A		137,273		3,359		1,219		154,461		3,410		1,107
Consumer:
Home equity lines and loans		17,219		321		101		12,544		332		78
Automobile		38,007		1,214		161		46,134		1,516		277
Other		18,005		340		101		15,261		307		103
Total	$	875,130		15,809		11,071		1,056,860		19,295		14,005

In accordance with the previously described policies, the Company utilizes a loan grading system that is applied to all commercial loans and commercial real estate loans. Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan. Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more. All larger balance criticized commercial and commercial real estate loans are individually reviewed by centralized loan review personnel each quarter to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing. Smaller balance criticized loans are analyzed by business line risk management areas to ensure proper loan grade classification. Furthermore, criticized nonaccrual commercial loans and commercial real estate loans are considered impaired and, as a result, specific loss allowances on such loans are established within the allowance for credit losses to the extent appropriate in each individual instance. The following table summarizes the loan grades applied to the various classes of the Company’s commercial and commercial real estate loans.

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
June 30, 2014
Pass	$	18,287,252		21,012,039		1,277,387		3,079,596
Criticized accrual		626,447		595,788		58,431		54,937
Criticized nonaccrual		192,193		188,951		83,624		23,521
Total	$	19,105,892		21,796,778		1,419,442		3,158,054
December 31, 2013
Pass	$	17,894,592		20,972,257		1,107,144		3,040,106
Criticized accrual		699,885		596,553		72,941		54,464
Criticized nonaccrual		110,739		173,048		96,427		35,268
Total	$	18,705,216		21,741,858		1,276,512		3,129,838

In determining the allowance for credit losses, residential real estate loans and consumer loans are generally evaluated collectively after considering such factors as payment performance and recent loss experience and trends, which are mainly driven by current collateral values in the market place as well as the amount of loan defaults. Loss rates on such loans are determined by reference to recent charge-off history and are evaluated (and adjusted if deemed appropriate) through consideration of other factors including near-term forecasted loss estimates developed by the Company’s Credit Department. In arriving at such forecasts, the Company considers the current estimated fair value of its collateral based on geographical adjustments for home price depreciation/appreciation and overall borrower repayment performance. With regard to collateral values, the realizability of such values by the Company contemplates repayment of the original balance of any first lien position prior to recovering amounts on a second lien position. However, residential real estate loans and outstanding balances of home equity loans and lines of credit that are more than 150 days past due are generally evaluated for collectibility on a loan-by-loan basis giving consideration to estimated collateral values.

The Company also measures additional losses for purchased impaired loans when it is probable that the Company will be unable to collect all cash flows expected at acquisition plus additional cash flows expected to be collected arising from changes in estimates after acquisition. The determination of the allocated portion of the allowance for credit losses is very subjective. Given that inherent subjectivity and potential imprecision involved in determining the allocated portion of the allowance for credit losses, the Company also provides an inherent unallocated portion of the allowance. The unallocated portion of the allowance is intended to recognize probable losses that are not otherwise identifiable and includes management’s subjective determination of amounts necessary to provide for the possible use of imprecise estimates in determining the allocated portion of the allowance. Therefore, the level of the unallocated portion of the allowance is primarily reflective of the inherent imprecision in the various calculations used in determining the allocated portion of the allowance for credit losses. Other factors that could also lead to changes in the unallocated portion include the effects of expansion into new markets for which the Company does not have the same degree of familiarity and experience regarding portfolio performance in changing market conditions, the introduction of new loan and lease product types, and other risks associated with the Company’s loan portfolio that may not be specifically identifiable.

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
June 30, 2014
Individually evaluated for impairment	$	39,874		22,576		16,084		19,956	$	98,490
Collectively evaluated for impairment		247,542		287,975		54,604		145,199		735,320
Purchased impaired		4,835		703		1,716		716		7,970
Allocated	$	292,251		311,254		72,404		165,871		841,780
Unallocated										75,886
Total									$	917,666
December 31, 2013
Individually evaluated for impairment	$	24,614		27,563		21,127		18,927	$	92,231
Collectively evaluated for impairment		246,096		296,781		55,864		144,210		742,951
Purchased impaired		2,673		634		1,665		1,507		6,479
Allocated	$	273,383		324,978		78,656		164,644		841,661
Unallocated										75,015
Total									$	916,676

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
June 30, 2014
Individually evaluated for impairment	$	218,359		371,950		242,967		73,345	$	906,621
Collectively evaluated for impairment		18,870,831		25,764,322		8,388,568		10,534,834		63,558,555
Purchased impaired		16,702		238,002		25,231		2,582		282,517
Total	$	19,105,892		26,374,274		8,656,766		10,610,761	$	64,747,693
December 31, 2013
Individually evaluated for impairment	$	118,386		376,339		320,360		71,773	$	886,858
Collectively evaluated for impairment		18,571,124		25,488,584		8,578,677		10,217,124		62,855,509
Purchased impaired		15,706		283,285		29,184		2,617		330,792
Total	$	18,705,216		26,148,208		8,928,221		10,291,514	$	64,073,159

During the normal course of business, the Company modifies loans to maximize recovery efforts. If the borrower is experiencing financial difficulty and a concession is granted, the Company considers such modifications as troubled debt restructurings and classifies those loans as either nonaccrual loans or renegotiated loans. The types of concessions that the Company grants typically include principal deferrals and interest rate concessions, but may also include other types of concessions.

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended June 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Three months ended June 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		21	$	4,414	$	4,351	$	(63	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		3		9,795		9,727		(68	)		(10	)
Real estate:
Commercial
Principal deferral		11		8,327		8,314		(13	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		1		63		61		(2	)		(9	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Other commercial construction
Principal deferral		2		6,407		6,318		(89	)		—
Residential
Principal deferral		3		142		166		24			—
Combination of concession types		8		923		991		68			(66	)
Residential Alt-A
Principal deferral		3		662		698		36			—
Combination of concession types		6		1,006		1,029		23			(220	)
Consumer:
Home equity lines and loans
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		21		1,772		1,772		—			(204	)
Automobile
Principal deferral		43		603		603		—			—
Interest rate reduction		3		60		60		—			(3	)
Other		8		47		47		—			—
Combination of concession types		23		341		341		—			(36	)
Other
Principal deferral		7		38		38		—			—
Interest rate reduction		3		291		291		—			(63	)
Combination of concession types		19		906		906		—			(276	)
Total		193	$	57,384	$	57,297	$	(87	)	$	(1,011	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Three months ended June 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	4,870	$	4,822	$	(48	)	$	—
Other		1		1,460		1,657		197			—
Combination of concession types		2		1,490		980		(510	)		—
Real estate:
Commercial
Principal deferral		5		15,549		15,530		(19	)		—
Residential builder and developer
Principal deferral		7		17,496		16,722		(774	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		2		13,879		13,823		(56	)		(535	)
Other commercial construction
Principal deferral		2		364		363		(1	)		—
Residential
Principal deferral		8		1,216		1,358		142			—
Combination of concession types		18		69,210		65,890		(3,320	)		(186	)
Residential Alt-A
Principal deferral		1		99		102		3			—
Combination of concession types		8		1,187		1,294		107			(278	)
Consumer:
Home equity lines and loans
Principal deferral		2		101		103		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		8		406		406		—			(64	)
Automobile
Principal deferral		117		1,629		1,629		—			—
Interest rate reduction		7		104		104		—			(10	)
Other		28		73		73		—			—
Combination of concession types		62		1,044		1,044		—			(87	)
Other
Principal deferral		14		185		185		—			—
Interest rate reduction		1		12		12		—			(2	)
Combination of concession types		30		707		707		—			(234	)
Total		341	$	135,325	$	130,897	$	(4,428	)	$	(1,404	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the six months ended June 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Six months ended June 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		51	$	19,368	$	19,199	$	(169	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		24		15,371		15,316		(55	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		2		409		462		53			(113	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Other commercial construction
Principal deferral		3		6,558		6,469		(89	)		—
Residential
Principal deferral		16		1,744		1,829		85			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		22		3,111		3,151		40			(348	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		16		2,752		2,765		13			(281	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		36		3,628		3,628		—			(376	)
Automobile
Principal deferral		123		1,596		1,596		—			—
Interest rate reduction		3		60		60		—			(3	)
Other		19		108		108		—			—
Combination of concession types		46		591		591		—			(62	)
Other
Principal deferral		15		93		93		—			—
Interest rate reduction		3		291		291		—			(63	)
Other		1		45		45		—			—
Combination of concession types		33		1,372		1,372		—			(464	)
Total		436	$	89,914	$	89,797	$	(117	)	$	(1,880	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Six months ended June 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		39	$	6,876	$	6,804	$	(72	)	$	—
Other		2		48,660		48,857		197			—
Combination of concession types		3		1,832		1,322		(510	)		—
Real estate:
Commercial
Principal deferral		13		34,027		33,893		(134	)		—
Combination of concession types		2		582		581		(1	)		(56	)
Residential builder and developer
Principal deferral		15		18,853		18,062		(791	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		3		15,580		15,514		(66	)		(535	)
Other commercial construction
Principal deferral		2		364		363		(1	)		—
Residential
Principal deferral		15		1,782		1,965		183			—
Other		1		195		195		—			—
Combination of concession types		38		71,659		68,426		(3,233	)		(557	)
Residential Alt-A
Principal deferral		1		99		102		3			—
Combination of concession types		13		2,094		2,219		125			(388	)
Consumer:
Home equity lines and loans
Principal deferral		4		180		182		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		10		617		617		—			(97	)
Automobile
Principal deferral		238		3,215		3,215		—			—
Interest rate reduction		9		140		140		—			(15	)
Other		45		232		232		—			—
Combination of concession types		123		1,597		1,597		—			(129	)
Other
Principal deferral		20		230		230		—			—
Interest rate reduction		1		12		12		—			(2	)
Other		1		12		12		—			—
Combination of concession types		72		1,924		1,924		—			(501	)
Total		673	$	215,006	$	210,557	$	(4,449	)	$	(2,288	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

Troubled debt restructurings are considered to be impaired loans and for purposes of establishing the allowance for credit losses are evaluated for impairment giving consideration to the impact of the modified loan terms on the present value of the loan’s expected cash flows. Impairment of troubled debt restructurings that have subsequently defaulted may also be measured based on the loan’s observable market price or the fair value of collateral if the loan is collateral-dependent. Charge-offs may also be recognized on troubled debt restructurings that have subsequently defaulted. Loans that were modified as troubled debt restructurings during the twelve months ended June 30, 2014 and 2013 and for which there was a subsequent payment default during the six-month periods ended June 30, 2014 and 2013, were not material.

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Investment securities

6 Months Ended

Jun. 30, 2014

Investments Debt And Equity Securities [Abstract]

Investment securities

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
June 30, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	42,600		324		3	$	42,921
Obligations of states and political subdivisions		9,999		302		59		10,242
Mortgage-backed securities:
Government issued or guaranteed		7,426,259		191,716		348		7,617,627
Privately issued		119		4		4		119
Collateralized debt obligations		32,548		24,100		448		56,200
Other debt securities		138,362		2,185		15,784		124,763
Equity securities		103,865		54,119		1,077		156,907
		7,753,752		272,750		17,723		8,008,779
Investment securities held to maturity:
Obligations of states and political subdivisions		154,733		3,289		88		157,934
Mortgage-backed securities:
Government issued or guaranteed		3,387,213		67,816		14,881		3,440,148
Privately issued		210,388		—		50,952		159,436
Other debt securities		8,331		—		—		8,331
		3,760,665		71,105		65,921		3,765,849
Other securities		350,751		—		—		350,751
Total	$	11,865,168		343,855		83,644	$	12,125,379
December 31, 2013
Investment securities available for sale:
U.S. Treasury and federal agencies	$	37,396		382		2	$	37,776
Obligations of states and political subdivisions		10,484		333		6		10,811
Mortgage-backed securities:
Government issued or guaranteed		4,123,435		61,001		19,350		4,165,086
Privately issued		1,468		387		5		1,850
Collateralized debt obligations		42,274		21,666		857		63,083
Other debt securities		137,828		1,722		19,465		120,085
Equity securities		91,480		41,842		227		133,095
		4,444,365		127,333		39,912		4,531,786
Investment securities held to maturity:
Obligations of states and political subdivisions		169,684		3,744		135		173,293
Mortgage-backed securities:
Government issued or guaranteed		3,567,905		16,160		65,149		3,518,916
Privately issued		219,628		—		60,623		159,005
Other debt securities		8,913		—		—		8,913
		3,966,130		19,904		125,907		3,860,127
Other securities		298,581		—		—		298,581
Total	$	8,709,076		147,237		165,819	$	8,690,494

There were no gross realized gains or losses from the sale of investment securities for the three-month and six-month periods ended June 30, 2014. Gross realized gains on investment securities were $116 million for the three-month and six-month periods ended June 30, 2013. During the second quarter of 2013, the Company sold its holdings of Visa Class B shares for a gain of approximately $90 million and its holdings of MasterCard Class B shares for a gain of $13 million. Gross realized losses on investment securities were $60 million for the three-month and six-month periods ended June 30, 2013. During the second quarter of 2013, the Company sold substantially all of its privately issued mortgage-backed securities that had been held in the available-for-sale investment securities portfolio. In total, $1.0 billion of such securities were sold for a net loss of approximately $46 million.

There were $10 million of pre-tax other-than-temporary impairment (“OTTI”) losses recognized during the first quarter of 2013 related to privately issued mortgage-backed securities. The impairment charges were recognized in light of deterioration of real estate values and a rise in delinquencies and charge-offs of underlying mortgage loans collateralizing those securities. The OTTI losses represented management’s estimate of credit losses inherent in the debt securities considering projected cash flows using assumptions for delinquency rates, loss severities, and other estimates of future collateral performance. The Company did not recognize any OTTI losses during the first or second quarters of 2014 or the second quarter of 2013.

Changes in credit losses associated with debt securities for which OTTI losses had been recognized in earnings for the three months and six months ended June 30, 2013 follow:

	Three months ended			Six months ended
	June 30, 2013			June 30, 2013
	(in thousands)
Beginning balance	$	187,114			197,809
Additions for credit losses not previously recognized		—			9,800
Reductions for realized losses		(186,320	)		(206,815	)
Ending balance	$	794			794

There were no significant credit losses associated with debt securities held by the Company as of June 30, 2014 or December 31, 2013.

At June 30, 2014, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

	Amortized cost		Estimated fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	7,513		7,592
Due after one year through five years		46,209		46,952
Due after five years through ten years		5,009		5,145
Due after ten years		164,778		174,437
		223,509		234,126
Mortgage-backed securities available for sale		7,426,378		7,617,746
	$	7,649,887		7,851,872
Debt securities held to maturity:
Due in one year or less	$	21,159		21,326
Due after one year through five years		78,588		80,389
Due after five years through ten years		54,986		56,219
Due after ten years		8,331		8,331
		163,064		166,265
Mortgage-backed securities held to maturity		3,597,601		3,599,584
	$	3,760,665		3,765,849

A summary of investment securities that as of June 30, 2014 and December 31, 2013 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

	Less than 12 months					12 months or more
	Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
June 30, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	5,865		(3	)		—		—
Obligations of states and political subdivisions		1,832		(55	)		437		(4	)
Mortgage-backed securities:
Government issued or guaranteed		42,896		(158	)		8,254		(190	)
Privately issued		—		—			77		(4	)
Collateralized debt obligations		2,633		(114	)		5,557		(334	)
Other debt securities		157		(10	)		99,118		(15,774	)
Equity securities		3,240		(1,077	)		—		—
		56,623		(1,417	)		113,443		(16,306	)
Investment securities held to maturity:
Obligations of states and political subdivisions		8,329		(34	)		3,753		(54	)
Mortgage-backed securities:
Government issued or guaranteed		140,724		(878	)		730,795		(14,003	)
Privately issued		—		—			159,436		(50,952	)
		149,053		(912	)		893,984		(65,009	)
Total	$	205,676		(2,329	)		1,007,427		(81,315	)
December 31, 2013
Investment securities available for sale:
U.S. Treasury and federal agencies	$	745		(2	)		—		—
Obligations of states and political subdivisions		—		—			558		(6	)
Mortgage-backed securities:
Government issued or guaranteed		1,697,094		(19,225	)		5,815		(125	)
Privately issued		—		—			98		(5	)
Collateralized debt obligations		—		—			6,257		(857	)
Other debt securities		1,428		(4	)		103,602		(19,461	)
Equity securities		159		(227	)		—		—
		1,699,426		(19,458	)		116,330		(20,454	)
Investment securities held to maturity:
Obligations of states and political subdivisions		13,517		(120	)		1,558		(15	)
Mortgage-backed securities:
Government issued or guaranteed		2,629,950		(65,149	)		—		—
Privately issued		—		—			159,005		(60,623	)
		2,643,467		(65,269	)		160,563		(60,638	)
Total	$	4,342,893		(84,727	)		276,893		(81,092	)

The Company owned 289 individual investment securities with aggregate gross unrealized losses of $84 million at June 30, 2014. Based on a review of each of the securities in the investment securities portfolio at June 30, 2014, the Company concluded that it expected to recover the amortized cost basis of its investment. As of June 30, 2014, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At June 30, 2014, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $351 million of cost method investment securities.

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Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

15. 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. The carrying value of that investment was $56 million at June 30, 2014.

Bayview Financial Holdings, L.P. (together with its affiliates, “Bayview Financial”), a privately-held specialty mortgage 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 $5.2 billion and $5.5 billion at June 30, 2014 and December 31, 2013, respectively. Revenues from those servicing rights were $7 million and $8 million during the three months ended June 30, 2014 and 2013, respectively, and $14 million and $16 million for the six months ended June 30, 2014 and June 30, 2013, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances totaling $44.6 billion and $45.6 billion at June 30, 2014 and December 31, 2013, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $27 million and $2 million for the three-month periods ended June 30, 2014 and 2013, respectively, and $53 million and $4 million for the six-month periods ended June 30, 2014 and 2013, respectively. In addition, the Company held $210 million and $220 million of mortgage-backed securities in its held-to-maturity portfolio at June 30, 2014 and December 31, 2013, respectively, that were securitized by Bayview Financial.

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Variable interest entities and asset securitizations

6 Months Ended

Jun. 30, 2014

Text Block [Abstract]

Variable interest entities and asset securitizations

11. Variable interest entities and asset securitizations

In the second quarter of 2013, the Company securitized approximately $923 million of one-to-four family residential mortgage loans in guaranteed mortgage securitizations with Ginnie Mae. Approximately $296 million of such loans were formerly held in the Company’s loan portfolio, whereas the remaining $627 million of the loans were newly originated. The Company retained $917 million of the resulting securities and recognized gains of $7 million relating to loans previously held for investment, which have been recorded in other revenues from operations, and gains of $10 million on newly originated loans, which have been reflected in mortgage banking revenues. The Company expects no material credit-related losses on the retained securities as a result of the guarantees by Ginnie Mae. At June 30, 2013 the Company had $1.0 billion of loans in its loan portfolio guaranteed by the Federal Housing Administration that the Company securitized with Ginnie Mae in the third quarter of 2013. The Company retained the substantial majority of the resulting securities in its investment portfolio. In similar transactions for the six months ended June 30, 2014, the Company securitized $75 million of one-to-four family residential real estate loans that had been originated for sale in guaranteed mortgage securitizations with Ginnie Mae and retained the resulting securities in its investment portfolio. Pre-tax gains on such transactions were not material.

In accordance with GAAP, the Company determined that it was the primary beneficiary of a residential mortgage loan securitization trust considering its role as servicer and its retained subordinated interests in the trust. As a result, the Company has included the one-to-four family residential mortgage loans that were included in the trust in its consolidated financial statements. At June 30, 2014 and December 31, 2013, the carrying values of the loans in the securitization trust were $110 million and $121 million, respectively. The outstanding principal amount of mortgage-backed securities issued by the qualified special purpose trust that was held by parties unrelated to M&T at each of June 30, 2014 and December 31, 2013 was $18 million. Because the transaction was non-recourse, the Company’s maximum exposure to loss as a result of its association with the trust at June 30, 2014 is limited to realizing the carrying value of the loans less the amount of the mortgage-backed securities held by third parties.

As described in note 5, M&T has issued junior subordinated debentures payable to various trusts that have issued Capital Securities. M&T owns the common securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At June 30, 2014 and December 31, 2013, the Company included the junior subordinated debentures as “long-term borrowings” in its consolidated balance sheet. The Company has recognized $34 million in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 5.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.3 billion at June 30, 2014 and December 31, 2013, respectively. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $236 million, including $53 million of unfunded commitments, at June 30, 2014 and $236 million, including $45 million of unfunded commitments, at December 31, 2013. The Company has not provided financial or other support to the partnerships that was not contractually required. Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities. The Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, in accordance with the accounting provisions for variable interest entities, the partnership entities are not included in the Company’s consolidated financial statements.

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Pension plans and other postretirement benefits

6 Months Ended

Jun. 30, 2014

Compensation And Retirement Disclosure [Abstract]

Pension plans and other postretirement benefits

7. Pension plans and other postretirement benefits

The Company provides defined benefit pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic defined benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended June 30
	2014			2013			2014			2013
	(in thousands)
Service cost	$	5,160			6,130			152			171
Interest cost on projected benefit obligation		17,331			14,939			714			670
Expected return on plan assets		(22,859	)		(21,802	)		—			—
Amortization of prior service cost		(1,626	)		(1,628	)		(329	)		(329	)
Amortization of net actuarial loss		3,897			10,138			—			80
Net periodic benefit cost	$	1,903			7,777			537			592
	Pension benefits						Other postretirement benefits
	Six months ended June 30
	2014			2013			2014			2013
	(in thousands)
Service cost	$	10,260			12,180			302			371
Interest cost on projected benefit obligation		34,581			30,065			1,389			1,345
Expected return on plan assets		(45,784	)		(43,677	)		—			—
Amortization of prior service cost		(3,276	)		(3,278	)		(679	)		(679	)
Amortization of net actuarial loss		7,247			20,538			—			180
Net periodic benefit cost	$	3,028			15,828			1,012			1,217

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $12,673,000 and $12,563,000 for the three months ended June 30, 2014 and 2013, respectively, and $28,405,000 and $28,318,000 for the six months ended June 30, 2014 and 2013, respectively.

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Earnings Per Common Share - Computations of Basic Earnings Per Common Share (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income available to common shareholders:
Net income	$ 284,336	$ 348,466	$ 513,353	$ 622,579
Less: Preferred stock dividends	(20,443)	(13,362)	(35,117)	(26,725)
Amortization of preferred stock discount		(2,193)		(4,340)
Net income available to common equity	263,893	332,911	478,236	591,514
Less: Income attributable to unvested stock-based compensation awards	(3,213)	(4,373)	(5,832)	(7,917)
Net income available to common shareholders	$ 260,680	$ 328,538	$ 472,404	$ 583,597
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	132,473	129,964	132,139	129,708
Less: Unvested stock-based compensation awards	(1,617)	(1,712)	(1,603)	(1,746)
Weighted-average shares outstanding	130,856	128,252	130,536	127,962
Basic earnings per common share	$ 1.99	$ 2.56	$ 3.62	$ 4.56

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Borrowings

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Borrowings

5. Borrowings

M&T had $834 million of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at June 30, 2014 which are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities (“Capital Securities”) and common securities (“Common Securities”). The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures. The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust’s securities possessing general voting powers. The Capital Securities represent preferred undivided interests in the assets of the corresponding trust.

Under the Federal Reserve Board’s current risk-based capital guidelines, the Capital Securities are includable in M&T’s Tier 1 capital. However, in July 2013, the Federal Reserve Board, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued a final rule to comprehensively revise the capital framework for the U.S. banking sector. Under that rule, trust preferred capital securities will be phased out from inclusion in Tier 1 capital such that in 2015 only 25% of then-outstanding securities will be included in Tier 1 capital and beginning in 2016 none of the securities will be included in Tier 1 capital.

Holders of the Capital Securities receive preferential cumulative cash distributions unless M&T exercises its right to extend the payment of interest on the Junior Subordinated Debentures as allowed by the terms of each such debenture, in which case payment of distributions on the respective Capital Securities will be deferred for comparable periods. During an extended interest period, M&T may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. In general, the agreements governing the Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by M&T of the payment of distributions on, the redemption of, and any liquidation distribution with respect to the Capital Securities. The obligations under such guarantee and the Capital Securities are subordinate and junior in right of payment to all senior indebtedness of M&T.

The Capital Securities will remain outstanding until the Junior Subordinated Debentures are repaid at maturity, are redeemed prior to maturity or are distributed in liquidation to the Trusts. The Capital Securities are mandatorily redeemable in whole, but not in part, upon repayment at the stated maturity dates (ranging from 2027 to 2033) of the Junior Subordinated Debentures or the earlier redemption of the Junior Subordinated Debentures in whole upon the occurrence of one or more events set forth in the indentures relating to the Capital Securities, and in whole or in part at any time after an optional redemption prior to contractual maturity contemporaneously with the optional redemption of the related Junior Subordinated Debentures in whole or in part, subject to possible regulatory approval.

On February 27, 2014, M&T redeemed all of the issued and outstanding 8.5% $350 million trust preferred securities issued by M&T Capital Trust IV and the related Junior Subordinated Debentures held by M&T Capital Trust IV.

Also included in long-term borrowings are agreements to repurchase securities of $1.4 billion at each of June 30, 2014 and December 31, 2013. The agreements are subject to legally enforceable master netting arrangements, however the Company has not offset any amounts related to these agreements in its consolidated financial statements. The Company posted collateral of $1.5 billion at June 30, 2014 and $1.6 billion at December 31, 2013.

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Shareholders' equity

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Shareholders' equity

6. Shareholders’ equity

M&T is authorized to issue 1,000,000 shares of preferred stock with a $1.00 par value per share. Preferred shares outstanding rank senior to common shares both as to dividends and liquidation preference, but have no general voting rights.

Issued and outstanding preferred stock of M&T is presented below:

	Shares issued and outstanding		Carrying value June 30, 2014		Carrying value December 31, 2013
			(dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share		230,000	$	230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		151,500		151,500		151,500
Series D (b)
Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000		500,000		500,000
Series E (c)
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock Series E, $1,000 liquidation preference per share		350,000		350,000		—

(a) Dividends, if declared, were paid quarterly at a rate of 5% per year through November 14, 2013 and are paid at 6.375% thereafter. M&T has agreed to not redeem the preferred shares until on or after November 15, 2018. Warrants to purchase M&T common stock were issued in connection with the Series A and C preferred stock (Series A – 1,218,522 common shares at $73.86 per share; Series C – 407,542 common shares at $55.76 per share). In March 2013, the Series C warrants were exercised in a “cashless” exercise, resulting in the issuance of 186,589 common shares. During the six months ended June 30, 2014, 379,376 of the Series A warrants were exercised in “cashless” exercises, resulting in the issuance of 149,834 common shares. Remaining outstanding Series A warrants were 770,019 at June 30, 2014.

(b) Dividends, if declared, will be paid semi-annually at a rate of 6.875% per year. The shares are redeemable in whole or in part on or after June 15, 2016. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, will be paid semi-annually at a rate of 6.45% through February 14, 2024 and thereafter will be paid quarterly at a rate of the three-month London Interbank Offered Rate plus 361 basis points (hundredths of one percent). The shares are redeemable in whole or in part on or after February 15, 2024. Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A and Series C warrants mentioned in (a) above, a warrant to purchase 95,383 shares of M&T common stock at $518.96 per share was outstanding at June 30, 2014 and December 31, 2013. The obligation under that warrant was assumed by M&T in an acquisition.

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Earnings per common share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings per common share

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended June 30						Six months ended June 30
	2014			2013			2014			2013
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	284,336			348,466		$	513,353			622,579
Less: Preferred stock dividends (a)		(20,443	)		(13,362	)		(35,117	)		(26,725	)
Amortization of preferred stock discount (a)		—			(2,193	)		—			(4,340	)
Net income available to common equity		263,893			332,911			478,236			591,514
Less: Income attributable to unvested stock-based compensation awards		(3,213	)		(4,373	)		(5,832	)		(7,917	)
Net income available to common shareholders	$	260,680			328,538		$	472,404			583,597
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		132,473			129,964			132,139			129,708
Less: Unvested stock-based compensation awards		(1,617	)		(1,712	)		(1,603	)		(1,746	)
Weighted-average shares outstanding		130,856			128,252			130,536			127,962
Basic earnings per common share	$	1.99			2.56		$	3.62			4.56

(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
	2014			2013			2014			2013
	(in thousands, except per share)
Net income available to common equity	$	263,893			332,911		$	478,236			591,514
Less: Income attributable to unvested stock-based compensation awards		(3,198	)		(4,354	)		(5,807	)		(7,881	)
Net income available to common shareholders	$	260,695			328,557		$	472,429			583,633
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		132,473			129,964			132,139			129,708
Less: Unvested stock-based compensation awards		(1,617	)		(1,712	)		(1,603	)		(1,746	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		972			765			943			866
Adjusted weighted-average shares outstanding		131,828			129,017			131,479			128,828
Diluted earnings per common share	$	1.98			2.55		$	3.59			4.53

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 1.7 million and 4.5 million common shares during the three-month periods ended June 30, 2014 and 2013, respectively, and 2.4 million and 4.6 million common shares during the six-month periods ended June 30, 2014 and 2013, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

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Comprehensive Income - Accumulated Other Comprehensive Income (Loss), Net (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (64,159)	$ (240,264)
Net gain (loss) during period	104,467	12,493
Ending Balance	40,308	(227,771)
Investment Securities With OTTI [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	22,632
Net gain (loss) during period	6,587
Ending Balance	29,219
Investment Securities All Other [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	11,294
Net gain (loss) during period	96,279
Ending Balance	107,573
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(98,182)
Net gain (loss) during period	1,999
Ending Balance	(96,183)
Accumulated Other Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	97
Net gain (loss) during period	(398)
Ending Balance	$ (301)

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Derivative Financial Instruments - Information about Interest Rate Swap Agreements (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Derivative [Line Items]
Notional Amount	$ 1,700,000
Average Maturity (in years)	3 years 6 months
Weighted-Average Rate, Fixed	3.96%
Weighted-Average Rate, Variable	1.02%
Cash Flow Hedging [Member]
Derivative [Line Items]
Notional Amount	300,000
Average Maturity (in years)	5 years 1 month 6 days
Weighted-Average Rate, Fixed	1.82%
Weighted-Average Rate, Variable	0.23%
Fixed rate long-term borrowings [Member] | Fair Value Hedges [Member]
Derivative [Line Items]
Notional Amount	$ 1,400,000	$ 1,400,000
Average Maturity (in years)	3 years 2 months 12 days	3 years 8 months 12 days
Weighted-Average Rate, Fixed	4.42%	4.42%
Weighted-Average Rate, Variable	1.18%	1.20%

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Comprehensive Income - Components of Other Comprehensive Income (Loss) and Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) to Net Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Components Of Comprehensive Income [Line Items]
Beginning balance			$ (105,797)	$ (395,657)
Unrealized holding gains (losses), net			167,606	(39,694)
Foreign currency translation adjustment			479	(1,644)
Unrealized losses on cash flow hedges			(1,170)
Total other comprehensive income before reclassifications			166,915	(41,338)
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			1,703	2,371
OTTI charges recognized in net income				9,800
Losses (gains) realized in net income				33,088
Amortization of prior service credit			(3,955)	(3,957)
Amortization of actuarial losses			7,247	20,718
Total reclassifications			4,995	62,020
Total gain (loss) during the period			171,910	20,682
Ending balance	66,113	(374,975)	66,113	(374,975)
Beginning balance			41,638	155,393
Unrealized holding gains (losses), net			(65,774)	15,557
Foreign currency translation adjustment			(166)	598
Unrealized losses on cash flow hedges			459
Total other comprehensive income before reclassifications			(65,481)	16,155
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			(669)	(931)
OTTI charges recognized in net income				(3,847)
Losses (gains) realized in net income				(12,987)
Amortization of prior service credit			1,552	1,553
Amortization of actuarial losses			(2,845)	(8,132)
Total reclassifications			(1,962)	(24,344)
Total gain (loss) during the period			(67,443)	(8,189)
Ending balance	(25,805)	147,204	(25,805)	147,204
Beginning balance			(64,159)	(240,264)
Unrealized holding gains (losses), net			101,832	(24,137)
Foreign currency translation adjustment	449	(114)	313	(1,046)
Unrealized losses on cash flow hedges	(711)		(711)
Total other comprehensive income before reclassifications			101,434	(25,183)
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			1,034	1,440
OTTI charges recognized in net income				5,953
Losses (gains) realized in net income				20,101
Amortization of prior service credit			(2,403)	(2,404)
Amortization of actuarial losses			4,402	12,586
Total reclassifications			3,033	37,676
Total gain (loss) during the period			104,467	12,493
Ending Balance	40,308	(227,771)	40,308	(227,771)
Other [Member]
Components Of Comprehensive Income [Line Items]
Beginning balance			115	(431)
Unrealized holding gains (losses), net
Foreign currency translation adjustment			479	(1,644)
Unrealized losses on cash flow hedges			(1,170)
Total other comprehensive income before reclassifications			(691)	(1,644)
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities
OTTI charges recognized in net income
Losses (gains) realized in net income
Amortization of prior service credit
Amortization of actuarial losses
Total reclassifications
Total gain (loss) during the period			(691)	(1,644)
Ending balance	(576)	(2,075)	(576)	(2,075)
Investment Securities With OTTI [Member]
Components Of Comprehensive Income [Line Items]
Beginning balance			37,255	(91,835)
Unrealized holding gains (losses), net			10,842	55,473
Foreign currency translation adjustment
Unrealized losses on cash flow hedges
Total other comprehensive income before reclassifications			10,842	55,473
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			1	109
OTTI charges recognized in net income				9,800
Losses (gains) realized in net income				41,217
Amortization of prior service credit
Amortization of actuarial losses
Total reclassifications			1	51,126
Total gain (loss) during the period			10,843	106,599
Ending balance	48,098	14,764	48,098	14,764
Investment Securities All Other [Member]
Components Of Comprehensive Income [Line Items]
Beginning balance			18,450	152,199
Unrealized holding gains (losses), net			156,764	(95,167)
Foreign currency translation adjustment
Unrealized losses on cash flow hedges
Total other comprehensive income before reclassifications			156,764	(95,167)
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities			1,702	2,262
OTTI charges recognized in net income
Losses (gains) realized in net income				(8,129)
Amortization of prior service credit
Amortization of actuarial losses
Total reclassifications			1,702	(5,867)
Total gain (loss) during the period			158,466	(101,034)
Ending balance	176,916	51,165	176,916	51,165
Defined Benefit Plans [Member]
Components Of Comprehensive Income [Line Items]
Beginning balance			(161,617)	(455,590)
Unrealized holding gains (losses), net
Foreign currency translation adjustment
Unrealized losses on cash flow hedges
Total other comprehensive income before reclassifications
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities
OTTI charges recognized in net income
Losses (gains) realized in net income
Amortization of prior service credit			(3,955)	(3,957)
Amortization of actuarial losses			7,247	20,718
Total reclassifications			3,292	16,761
Total gain (loss) during the period			3,292	16,761
Ending balance	(158,325)	(438,829)	(158,325)	(438,829)
Beginning balance			(98,182)
Total gain (loss) during the period			1,999
Ending Balance	$ (96,183)		$ (96,183)

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Commitments and contingencies (Tables)

6 Months Ended

Jun. 30, 2014

Commitments And Contingencies Disclosure [Abstract]

Company's Significant Commitments

The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.

	June 30,		December 31,
	2014		2013
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,246,501		6,218,823
Commercial real estate loans to be sold		250,725		62,386
Other commercial real estate and construction		4,482,869		3,919,545
Residential real estate loans to be sold		596,865		469,869
Other residential real estate		412,964		384,617
Commercial and other		10,560,928		10,419,545
Standby letters of credit		3,581,160		3,600,528
Commercial letters of credit		43,653		53,284
Financial guarantees and indemnification contracts		2,701,575		2,457,633
Commitments to sell real estate loans		1,254,309		854,656

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Loans and Leases and the Allowance for Credit Losses - Allocation of Allowance for Credit Losses on Basis of Company's Impairment Methodology (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 98,490		$ 92,231
Allowance for credit losses	735,320		742,951
Allowance for credit losses	917,666	916,768	916,676	927,065	927,117	925,860
Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	7,970		6,479
Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	841,780		841,661
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	75,886		75,015
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	39,874		24,614
Allowance for credit losses	247,542		246,096
Commercial, Financial, Leasing, etc. [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	4,835		2,673
Commercial, Financial, Leasing, etc. [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	292,251		273,383
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	22,576		27,563
Allowance for credit losses	287,975		296,781
Commercial Real Estate [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	703		634
Commercial Real Estate [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	311,254		324,978
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	16,084		21,127
Allowance for credit losses	54,604		55,864
Residential Real Estate [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,716		1,665
Residential Real Estate [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	72,404		78,656
Consumer loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	19,956		18,927
Allowance for credit losses	145,199		144,210
Consumer loans [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	716		1,507
Consumer loans [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 165,871		$ 164,644

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Commitments and contingencies

6 Months Ended

Jun. 30, 2014

Commitments And Contingencies Disclosure [Abstract]

Commitments and contingencies

13. Commitments and contingencies

In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.

	June 30,		December 31,
	2014		2013
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,246,501		6,218,823
Commercial real estate loans to be sold		250,725		62,386
Other commercial real estate and construction		4,482,869		3,919,545
Residential real estate loans to be sold		596,865		469,869
Other residential real estate		412,964		384,617
Commercial and other		10,560,928		10,419,545
Standby letters of credit		3,581,160		3,600,528
Commercial letters of credit		43,653		53,284
Financial guarantees and indemnification contracts		2,701,575		2,457,633
Commitments to sell real estate loans		1,254,309		854,656

Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness.

Financial guarantees and indemnification contracts are oftentimes similar to standby letters of credit and include mandatory purchase agreements issued to ensure that customer obligations are fulfilled, recourse obligations associated with sold loans, and other guarantees of customer performance or compliance with designated rules and regulations. Included in financial guarantees and indemnification contracts are loan principal amounts sold with recourse in conjunction with the Company’s involvement in the Fannie Mae Delegated Underwriting and Servicing program. The Company’s maximum credit risk for recourse associated with loans sold under this program totaled approximately $2.3 billion at June 30, 2014 and December 31, 2013.

Since many loan commitments, standby letters of credit, and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows.

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are considered derivatives and along with commitments to originate real estate loans to be held for sale are generally recorded in the consolidated balance sheet at estimated fair value.

The Company has commitments under long-term operating leases and an agreement with the Baltimore Ravens of the National Football League whereby the Company obtained the naming rights to a football stadium in Baltimore, Maryland through 2027.

The Company reinsures credit life and accident and health insurance purchased by consumer loan customers. The Company also enters into reinsurance contracts with third party insurance companies who insure against the risk of a mortgage borrower’s payment default in connection with certain mortgage loans originated by the Company. When providing reinsurance coverage, the Company receives a premium in exchange for accepting a portion of the insurer’s risk of loss. The outstanding loan principal balances reinsured by the Company were approximately $12 million at June 30, 2014. Management believes that any reinsurance losses that may be payable by the Company will not be material to the Company’s consolidated financial position.

The Company is contractually obligated to repurchase previously sold residential real estate loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. At June 30, 2014, management believes that any further liability arising out of the Company’s obligation to loan purchasers is not material to the Company’s consolidated financial position.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. On an on-going basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $40 million. Although the Company does not believe that the outcome of pending litigations will be material to the Company’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future.

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Investment securities (Tables)

6 Months Ended

Jun. 30, 2014

Investments Debt And Equity Securities [Abstract]

Amortized Cost and Estimated Fair Value of Investment Securities

The amortized cost and estimated fair value of investment securities were as follows:

	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
	(in thousands)
June 30, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	42,600		324		3	$	42,921
Obligations of states and political subdivisions		9,999		302		59		10,242
Mortgage-backed securities:
Government issued or guaranteed		7,426,259		191,716		348		7,617,627
Privately issued		119		4		4		119
Collateralized debt obligations		32,548		24,100		448		56,200
Other debt securities		138,362		2,185		15,784		124,763
Equity securities		103,865		54,119		1,077		156,907
		7,753,752		272,750		17,723		8,008,779
Investment securities held to maturity:
Obligations of states and political subdivisions		154,733		3,289		88		157,934
Mortgage-backed securities:
Government issued or guaranteed		3,387,213		67,816		14,881		3,440,148
Privately issued		210,388		—		50,952		159,436
Other debt securities		8,331		—		—		8,331
		3,760,665		71,105		65,921		3,765,849
Other securities		350,751		—		—		350,751
Total	$	11,865,168		343,855		83,644	$	12,125,379
December 31, 2013
Investment securities available for sale:
U.S. Treasury and federal agencies	$	37,396		382		2	$	37,776
Obligations of states and political subdivisions		10,484		333		6		10,811
Mortgage-backed securities:
Government issued or guaranteed		4,123,435		61,001		19,350		4,165,086
Privately issued		1,468		387		5		1,850
Collateralized debt obligations		42,274		21,666		857		63,083
Other debt securities		137,828		1,722		19,465		120,085
Equity securities		91,480		41,842		227		133,095
		4,444,365		127,333		39,912		4,531,786
Investment securities held to maturity:
Obligations of states and political subdivisions		169,684		3,744		135		173,293
Mortgage-backed securities:
Government issued or guaranteed		3,567,905		16,160		65,149		3,518,916
Privately issued		219,628		—		60,623		159,005
Other debt securities		8,913		—		—		8,913
		3,966,130		19,904		125,907		3,860,127
Other securities		298,581		—		—		298,581
Total	$	8,709,076		147,237		165,819	$	8,690,494

Changes in Credit Losses Associated with Debt Securities for Which OTTI Losses

Changes in credit losses associated with debt securities for which OTTI losses had been recognized in earnings for the three months and six months ended June 30, 2013 follow:

	Three months ended			Six months ended
	June 30, 2013			June 30, 2013
	(in thousands)
Beginning balance	$	187,114			197,809
Additions for credit losses not previously recognized		—			9,800
Reductions for realized losses		(186,320	)		(206,815	)
Ending balance	$	794			794

Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity

At June 30, 2014, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

	Amortized cost		Estimated fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	7,513		7,592
Due after one year through five years		46,209		46,952
Due after five years through ten years		5,009		5,145
Due after ten years		164,778		174,437
		223,509		234,126
Mortgage-backed securities available for sale		7,426,378		7,617,746
	$	7,649,887		7,851,872
Debt securities held to maturity:
Due in one year or less	$	21,159		21,326
Due after one year through five years		78,588		80,389
Due after five years through ten years		54,986		56,219
Due after ten years		8,331		8,331
		163,064		166,265
Mortgage-backed securities held to maturity		3,597,601		3,599,584
	$	3,760,665		3,765,849

Investment Securities in Continuous Unrealized Loss Position

A summary of investment securities that as of June 30, 2014 and December 31, 2013 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

	Less than 12 months					12 months or more
	Fair value		Unrealized losses			Fair value		Unrealized losses
	(in thousands)
June 30, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	5,865		(3	)		—		—
Obligations of states and political subdivisions		1,832		(55	)		437		(4	)
Mortgage-backed securities:
Government issued or guaranteed		42,896		(158	)		8,254		(190	)
Privately issued		—		—			77		(4	)
Collateralized debt obligations		2,633		(114	)		5,557		(334	)
Other debt securities		157		(10	)		99,118		(15,774	)
Equity securities		3,240		(1,077	)		—		—
		56,623		(1,417	)		113,443		(16,306	)
Investment securities held to maturity:
Obligations of states and political subdivisions		8,329		(34	)		3,753		(54	)
Mortgage-backed securities:
Government issued or guaranteed		140,724		(878	)		730,795		(14,003	)
Privately issued		—		—			159,436		(50,952	)
		149,053		(912	)		893,984		(65,009	)
Total	$	205,676		(2,329	)		1,007,427		(81,315	)
December 31, 2013
Investment securities available for sale:
U.S. Treasury and federal agencies	$	745		(2	)		—		—
Obligations of states and political subdivisions		—		—			558		(6	)
Mortgage-backed securities:
Government issued or guaranteed		1,697,094		(19,225	)		5,815		(125	)
Privately issued		—		—			98		(5	)
Collateralized debt obligations		—		—			6,257		(857	)
Other debt securities		1,428		(4	)		103,602		(19,461	)
Equity securities		159		(227	)		—		—
		1,699,426		(19,458	)		116,330		(20,454	)
Investment securities held to maturity:
Obligations of states and political subdivisions		13,517		(120	)		1,558		(15	)
Mortgage-backed securities:
Government issued or guaranteed		2,629,950		(65,149	)		—		—
Privately issued		—		—			159,005		(60,623	)
		2,643,467		(65,269	)		160,563		(60,638	)
Total	$	4,342,893		(84,727	)		276,893		(81,092	)

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Loans and Leases and the Allowance for Credit Losses - Interest Income Recognized on Loans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	$ 855,403	$ 1,055,874	$ 875,130	$ 1,056,860
Interest income recognized, Total	9,228	11,479	15,809	19,295
Interest income recognized, Cash basis	6,807	8,816	11,071	14,005
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	150,625	183,544	142,466	172,637
Interest income recognized, Total	220	3,408	768	5,842
Interest income recognized, Cash basis	220	3,408	768	5,842
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	207,633	201,236	196,529	197,546
Interest income recognized, Total	869	409	1,795	712
Interest income recognized, Cash basis	869	409	1,795	712
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	91,614	162,567	96,434	173,535
Interest income recognized, Total	39	518	113	658
Interest income recognized, Cash basis	39	384	113	449
Other commercial construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	77,801	97,975	82,546	98,160
Interest income recognized, Total	356	2,479	1,443	3,114
Interest income recognized, Cash basis	356	2,479	1,443	3,114
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	119,133	185,751	146,651	186,582
Interest income recognized, Total	5,056	1,934	6,456	3,404
Interest income recognized, Cash basis	4,468	1,401	5,370	2,323
Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	134,895	151,977	137,273	154,461
Interest income recognized, Total	1,733	1,670	3,359	3,410
Interest income recognized, Cash basis	660	516	1,219	1,107
Home equity lines and loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	18,762	12,619	17,219	12,544
Interest income recognized, Total	200	165	321	332
Interest income recognized, Cash basis	72	39	101	78
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	36,631	44,641	38,007	46,134
Interest income recognized, Total	589	740	1,214	1,516
Interest income recognized, Cash basis	74	131	161	277
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average recorded investment	18,309	15,564	18,005	15,261
Interest income recognized, Total	166	156	340	307
Interest income recognized, Cash basis	$ 49	$ 49	$ 101	$ 103

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Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Debt securities available for sale:
Due in one year or less	$ 7,513
Due after one year through five years	46,209
Due after five years through ten years	5,009
Due after ten years	164,778
Total available for sale (amortized cost)	223,509
Mortgage-backed securities available for sale	7,426,378
Total	7,649,887
Debt securities held to maturity:
Due in one year or less	21,159
Due after one year through five years	78,588
Due after five years through ten years	54,986
Due after ten years	8,331
Total available for held to maturity (amortized cost)	163,064
Mortgage-backed securities held to maturity	3,597,601
Total	3,760,665	3,966,130
Debt securities available for sale:
Due in one year or less	7,592
Due after one year through five years	46,952
Due after five years through ten years	5,145
Due after ten years	174,437
Total available for sale (fair value)	234,126
Mortgage-backed securities available for sale	7,617,746
Total	7,851,872
Debt securities held to maturity:
Due in one year or less	21,326
Due after one year through five years	80,389
Due after five years through ten years	56,219
Due after ten years	8,331
Total available for held to maturity (fair value)	166,265
Mortgage-backed securities held to maturity	3,599,584
Estimated fair value for held to maturity	$ 3,765,849	$ 3,860,127

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement Of Partners Capital [Abstract]
Net income	$ 284,336	$ 348,466	$ 513,353	$ 622,579
Other comprehensive income (loss), net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	64,652	(6,722)	102,866	3,357
Unrealized losses on cash flow hedges	(711)		(711)
Foreign currency translation adjustment	449	(114)	313	(1,046)
Defined benefit plans liability adjustment	1,179	5,018	1,999	10,182
Total other comprehensive income (loss)	65,569	(1,818)	104,467	12,493
Total comprehensive income	$ 349,905	$ 346,648	$ 617,820	$ 635,072

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Acquisitions

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Acquisitions

2. Acquisitions

On August 27, 2012, M&T announced that it had entered into a definitive agreement with Hudson City Bancorp, Inc. (“Hudson City”), headquartered in Paramus, New Jersey, under which Hudson City would be acquired by M&T. Pursuant to the terms of the agreement, Hudson City shareholders will receive consideration for each common share of Hudson City in an amount valued at .08403 of an M&T share in the form of either M&T common stock or cash, based on the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of 60% common stock of M&T and 40% cash). As of June 30, 2014, total consideration to be paid was valued at approximately $5.4 billion.

At June 30, 2014, Hudson City had $37.7 billion of assets, including $23.3 billion of loans and $8.2 billion of investment securities, and $32.9 billion of liabilities, including $20.5 billion of deposits. The merger has received the approval of the common shareholders of M&T and Hudson City. However, the merger is subject to a number of other conditions, including regulatory approvals.

On June 17, 2013, M&T and Manufacturers and Traders Trust Company (“M&T Bank”), M&T’s principal banking subsidiary, entered into a written agreement with the Federal Reserve Bank of New York (“Federal Reserve Bank”). Under the terms of the agreement, M&T and M&T Bank are required to submit to the Federal Reserve Bank a revised compliance risk management program designed to ensure compliance with the Bank Secrecy Act and anti-money-laundering laws and regulations and to take certain other steps to enhance their compliance practices. The Company has commenced a major initiative, including the hiring of outside consulting firms, intended to fully address the Federal Reserve Bank’s concerns. In view of the timeframe required to implement this initiative, demonstrate its efficacy to the satisfaction of the Federal Reserve Bank and otherwise meet any other regulatory requirements that may be imposed in connection with these matters, M&T and Hudson City extended the date after which either party may elect to terminate the merger agreement if the merger has not yet been completed to December 31, 2014. Nevertheless, there can be no assurances that the merger will be completed by that date.

In connection with the pending acquisition, the Company incurred merger-related expenses related to preparing for systems conversions and other costs of integrating and conforming acquired operations with and into the Company. Those expenses consisted largely of professional services and other temporary help fees associated with planning for the conversion of systems and/or integration of operations; initial marketing and promotion expenses designed to introduce M&T Bank to its new customers; travel costs; and printing, postage, supplies and other costs of planning for the transaction and commencing operations in new markets and offices.

A summary of merger-related expenses incurred in 2013 associated with the pending Hudson City acquisition included in the consolidated statement of income is presented below. There were no merger-related expenses during the three months or six months ended June 30, 2014.

	Three months ended		Six months ended
	June 30, 2013		June 30, 2013
	(in thousands)
Salaries and employee benefits	$	300	$	836
Equipment and net occupancy		489		690
Printing, postage and supplies		998		1,825
Other costs of operations		5,845		9,013
	$	7,632	$	12,364

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Pension Plans and Other Postretirement Benefits - Net Periodic Benefit Cost for Defined Benefit Plans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5,160	$ 6,130	$ 10,260	$ 12,180
Interest cost on projected benefit obligation	17,331	14,939	34,581	30,065
Expected return on plan assets	(22,859)	(21,802)	(45,784)	(43,677)
Amortization of prior service cost	(1,626)	(1,628)	(3,276)	(3,278)
Amortization of net actuarial loss	3,897	10,138	7,247	20,538
Net periodic benefit cost	1,903	7,777	3,028	15,828
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	152	171	302	371
Interest cost on projected benefit obligation	714	670	1,389	1,345
Expected return on plan assets
Amortization of prior service cost	(329)	(329)	(679)	(679)
Amortization of net actuarial loss		80		180
Net periodic benefit cost	$ 537	$ 592	$ 1,012	$ 1,217

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Variable Interest Entities and Asset Securitizations - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
Variable Interest Entity Disclosure [Abstract]
Residential mortgage loans securitized with Ginnie Mae	$ 923,000,000	$ 75,000,000
Residential mortgage loans securitized formerly held in Company's portfolio	296,000,000
Residential mortgage loans securitized newly originated	627,000,000
Resulting securities retained	917,000,000
Recognized gain	7,000,000
Gains of newly originated loans	10,000,000
Amount of Loans guaranteed	1,000,000,000
Carrying value of loans in the Securitization trusts		110,000,000	121,000,000
Combined outstanding principal amount of mortgage-backed securities issued by qualified special purpose trust held by unrelated parties		18,000,000	18,000,000
Other assets for its "investment" in the common securities recognized by the company of various trusts		34,000,000	34,000,000
Total assets of real estate partnerships in which the company invested		1,300,000,000	1,300,000,000
Maximum exposure to loss of investments in real estate partnerships		236,000,000	236,000,000
Unfunded commitments included in company's maximum exposure to loss of investments in real estate partnerships		$ 53,000,000	$ 45,000,000

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Loans and leases and the allowance for credit losses (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Outstanding Principal Balance and Carrying Amount of Loans that is Included in Consolidated Balance Sheet

The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date and included in the consolidated balance sheet follow:

	June 30,		December 31,
	2014		2013
	(in thousands)
Outstanding principal balance	$	3,828,214		4,656,811
Carrying amount:
Commercial, financial, leasing, etc.		396,166		580,685
Commercial real estate		1,285,386		1,541,368
Residential real estate		515,791		576,473
Consumer		1,051,728		1,308,926
	$	3,249,071		4,007,452

Summary of Changes in Accretable Yield for Acquired Loans

A summary of changes in the accretable yield for acquired loans for the three months and six months ended June 30, 2014 and 2013 follows:

	Three months ended June 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	30,939			485,162		$	33,728			577,609
Interest income		(5,106	)		(43,452	)		(9,747	)		(67,539	)
Reclassifications from nonaccretable balance, net		249			774			31,168			111,702
Other (a)		—			8,486			—			321
Balance at end of period	$	26,082			450,970		$	55,149			622,093

	Six months ended June 30
	2014						2013
	Purchased impaired			Other acquired			Purchased impaired			Other acquired
	(in thousands)
Balance at beginning of period	$	37,230			538,633		$	42,252			638,272
Interest income		(11,434	)		(96,085	)		(18,451	)		(129,286	)
Reclassifications from nonaccretable balance, net		286			774			31,348			122,519
Other (a)		—			7,648			—			(9,412	)
Balance at end of period	$	26,082			450,970		$	55,149			622,093

(a) Other changes in expected cash flows including changes in interest rates and prepayment assumptions.

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of June 30, 2014 and December 31, 2013 follows:

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
	(in thousands)
June 30, 2014
Commercial, financial, leasing, etc.	$	18,831,026		56,292		3,910		5,769		16,702		192,193	$	19,105,892
Real estate:
Commercial		21,335,953		142,904		9,862		36,554		82,554		188,951		21,796,778
Residential builder and developer		1,203,959		10,417		—		9,505		111,937		83,624		1,419,442
Other commercial construction		3,075,240		11,764		—		4,018		43,511		23,521		3,158,054
Residential		7,499,250		261,083		270,492		42,245		25,231		198,816		8,297,117
Residential Alt-A		258,899		22,064		—		—		—		78,686		359,649
Consumer:
Home equity lines and loans		5,917,670		34,440		—		25,577		2,582		83,991		6,064,260
Automobile		1,621,311		23,629		—		218		—		16,075		1,661,233
Other		2,821,175		34,370		4,752		10,694		—		14,277		2,885,268
Total	$	62,564,483		596,963		289,016		134,580		282,517		880,134	$	64,747,693

			30-89		90 Days or more past due and accruing				Purchased
	Current		Days past due		Non- acquired		Acquired (a)		impaired (b)		Nonaccrual		Total
					(in thousands)
December 31, 2013
Commercial, financial, leasing, etc.	$	18,489,474		77,538		4,981		6,778		15,706		110,739	$	18,705,216
Real estate:
Commercial		21,236,071		145,749		63,353		35,603		88,034		173,048		21,741,858
Residential builder and developer		1,025,984		8,486		141		7,930		137,544		96,427		1,276,512
Other commercial construction		2,986,598		42,234		—		8,031		57,707		35,268		3,129,838
Residential		7,630,368		295,131		294,649		43,700		29,184		252,805		8,545,837
Residential Alt-A		283,253		18,009		—		—		—		81,122		382,384
Consumer:
Home equity lines and loans		5,972,365		40,537		—		27,754		2,617		78,516		6,121,789
Automobile		1,314,246		29,144		—		366		—		21,144		1,364,900
Other		2,726,522		47,830		5,386		—		—		25,087		2,804,825
Total	$	61,664,881		704,658		368,510		130,162		330,792		874,156	$	64,073,159

(a) Acquired loans that were recorded at fair value at acquisition date. This category does not include purchased impaired loans that are presented separately.

(b) Accruing loans that were impaired at acquisition date and were recorded at fair value.

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended June 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	276,835			324,805			77,062			162,134			75,932		$	916,768
Provision for credit losses		25,556			(12,229	)		(1,957	)		18,676			(46	)		30,000
Net charge-offs
Charge-offs		(14,142	)		(2,814	)		(5,478	)		(19,404	)		—			(41,838	)
Recoveries		4,002			1,492			2,777			4,465			—			12,736
Net charge-offs		(10,140	)		(1,322	)		(2,701	)		(14,939	)		—			(29,102	)
Ending balance	$	292,251			311,254			72,404			165,871			75,886		$	917,666

Changes in the allowance for credit losses for the three months ended June 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated			Total
	(in thousands)
Beginning balance	$	257,851			328,016			90,122			176,793			74,335		$	927,117
Provision for credit losses		55,647			(10,913	)		(1,438	)		13,707			(3	)		57,000
Net charge-offs
Charge-offs		(46,312	)		(4,204	)		(5,092	)		(21,018	)		—			(76,626	)
Recoveries		1,681			11,365			1,719			4,809			—			19,574
Net charge-offs		(44,631	)		7,161			(3,373	)		(16,209	)		—			(57,052	)
Ending balance	$	268,867			324,264			85,311			174,291			74,332		$	927,065

Changes in the allowance for credit losses for the six months ended June 30, 2014 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	273,383			324,978			78,656			164,644			75,015	$	916,676
Provision for credit losses		38,154			(12,113	)		2,271			32,817			871		62,000
Net charge-offs
Charge-offs		(28,951	)		(6,300	)		(12,931	)		(41,095	)		—		(89,277	)
Recoveries		9,665			4,689			4,408			9,505			—		28,267
Net charge-offs		(19,286	)		(1,611	)		(8,523	)		(31,590	)		—		(61,010	)
Ending balance	$	292,251			311,254			72,404			165,871			75,886	$	917,666

Changes in the allowance for credit losses for the six months ended June 30, 2013 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	246,759			337,101			88,807			179,418			73,775	$	925,860
Provision for credit losses		73,527			(11,225	)		3,598			28,543			557		95,000
Net charge-offs
Charge-offs		(55,856	)		(13,792	)		(13,263	)		(42,663	)		—		(125,574	)
Recoveries		4,437			12,180			6,169			8,993			—		31,779
Net charge-offs		(51,419	)		(1,612	)		(7,094	)		(33,670	)		—		(93,795	)
Ending balance	$	268,867			324,264			85,311			174,291			74,332	$	927,065

Impaired Loans and Leases

The following tables provide information with respect to loans and leases that were considered impaired as of June 30, 2014 and December 31, 2013 and for the three months and six months ended June 30, 2014 and June 30, 2013:

	June 30, 2014						December 31, 2013
	Recorded investment		Unpaid principal balance		Related allowance		Recorded investment		Unpaid principal balance		Related allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	165,446		189,110		39,874		90,293		112,092		24,614
Real estate:
Commercial		95,543		112,623		16,330		113,570		132,325		19,520
Residential builder and developer		28,048		36,634		1,694		33,311		55,122		4,379
Other commercial construction		71,379		74,401		4,883		86,260		90,515		4,022
Residential		90,895		109,723		4,103		96,508		114,521		7,146
Residential Alt-A		108,426		123,349		12,000		111,911		124,528		14,000
Consumer:
Home equity lines and loans		19,358		20,424		5,877		13,672		14,796		3,312
Automobile		35,426		35,426		9,248		40,441		40,441		11,074
Other		18,561		18,561		4,831		17,660		17,660		4,541
		633,082		720,251		98,840		603,626		702,000		92,608
With no related allowance recorded:
Commercial, financial, leasing, etc.		52,913		55,167		—		28,093		33,095		—
Real estate:
Commercial		102,890		124,701		—		65,271		84,333		—
Residential builder and developer		66,149		99,746		—		72,366		104,768		—
Other commercial construction		9,453		14,306		—		7,369		11,493		—
Residential		19,681		29,512		—		84,144		95,358		—
Residential Alt-A		24,523		44,784		—		28,357		52,211		—
		275,609		368,216		—		285,600		381,258		—
Total:
Commercial, financial, leasing, etc.		218,359		244,277		39,874		118,386		145,187		24,614
Real estate:
Commercial		198,433		237,324		16,330		178,841		216,658		19,520
Residential builder and developer		94,197		136,380		1,694		105,677		159,890		4,379
Other commercial construction		80,832		88,707		4,883		93,629		102,008		4,022
Residential		110,576		139,235		4,103		180,652		209,879		7,146
Residential Alt-A		132,949		168,133		12,000		140,268		176,739		14,000
Consumer:
Home equity lines and loans		19,358		20,424		5,877		13,672		14,796		3,312
Automobile		35,426		35,426		9,248		40,441		40,441		11,074
Other		18,561		18,561		4,831		17,660		17,660		4,541
Total	$	908,691		1,088,467		98,840		889,226		1,083,258		92,608

Interest Income Recognized on Loans

	Three months ended June 30, 2014						Three months ended June 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	150,625		220		220		183,544		3,408		3,408
Real estate:
Commercial		207,633		869		869		201,236		409		409
Residential builder and developer		91,614		39		39		162,567		518		384
Other commercial construction		77,801		356		356		97,975		2,479		2,479
Residential		119,133		5,056		4,468		185,751		1,934		1,401
Residential Alt-A		134,895		1,733		660		151,977		1,670		516
Consumer:
Home equity lines and loans		18,762		200		72		12,619		165		39
Automobile		36,631		589		74		44,641		740		131
Other		18,309		166		49		15,564		156		49
Total	$	855,403		9,228		6,807		1,055,874		11,479		8,816
	Six months ended June 30, 2014						Six months ended June 30, 2013
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	142,466		768		768		172,637		5,842		5,842
Real estate:
Commercial		196,529		1,795		1,795		197,546		712		712
Residential builder and developer		96,434		113		113		173,535		658		449
Other commercial construction		82,546		1,443		1,443		98,160		3,114		3,114
Residential		146,651		6,456		5,370		186,582		3,404		2,323
Residential Alt-A		137,273		3,359		1,219		154,461		3,410		1,107
Consumer:
Home equity lines and loans		17,219		321		101		12,544		332		78
Automobile		38,007		1,214		161		46,134		1,516		277
Other		18,005		340		101		15,261		307		103
Total	$	875,130		15,809		11,071		1,056,860		19,295		14,005

Summary of Loan Grades

The following table summarizes the loan grades applied to the various classes of the Company’s commercial and commercial real estate loans.

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
June 30, 2014
Pass	$	18,287,252		21,012,039		1,277,387		3,079,596
Criticized accrual		626,447		595,788		58,431		54,937
Criticized nonaccrual		192,193		188,951		83,624		23,521
Total	$	19,105,892		21,796,778		1,419,442		3,158,054
December 31, 2013
Pass	$	17,894,592		20,972,257		1,107,144		3,040,106
Criticized accrual		699,885		596,553		72,941		54,464
Criticized nonaccrual		110,739		173,048		96,427		35,268
Total	$	18,705,216		21,741,858		1,276,512		3,129,838

Allocation of Allowance for Credit Losses on Basis of Company's Impairment Methodology

The allocation of the allowance for credit losses summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
June 30, 2014
Individually evaluated for impairment	$	39,874		22,576		16,084		19,956	$	98,490
Collectively evaluated for impairment		247,542		287,975		54,604		145,199		735,320
Purchased impaired		4,835		703		1,716		716		7,970
Allocated	$	292,251		311,254		72,404		165,871		841,780
Unallocated										75,886
Total									$	917,666
December 31, 2013
Individually evaluated for impairment	$	24,614		27,563		21,127		18,927	$	92,231
Collectively evaluated for impairment		246,096		296,781		55,864		144,210		742,951
Purchased impaired		2,673		634		1,665		1,507		6,479
Allocated	$	273,383		324,978		78,656		164,644		841,661
Unallocated										75,015
Total									$	916,676

Recorded Investment in Loans and Leases on Basis of Company's Impairment Methodology

The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology was as follows:

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(in thousands)
June 30, 2014
Individually evaluated for impairment	$	218,359		371,950		242,967		73,345	$	906,621
Collectively evaluated for impairment		18,870,831		25,764,322		8,388,568		10,534,834		63,558,555
Purchased impaired		16,702		238,002		25,231		2,582		282,517
Total	$	19,105,892		26,374,274		8,656,766		10,610,761	$	64,747,693
December 31, 2013
Individually evaluated for impairment	$	118,386		376,339		320,360		71,773	$	886,858
Collectively evaluated for impairment		18,571,124		25,488,584		8,578,677		10,217,124		62,855,509
Purchased impaired		15,706		283,285		29,184		2,617		330,792
Total	$	18,705,216		26,148,208		8,928,221		10,291,514	$	64,073,159

Loan Modification Activities that were Considered Troubled Debt Restructurings

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three months ended June 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Three months ended June 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		21	$	4,414	$	4,351	$	(63	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		3		9,795		9,727		(68	)		(10	)
Real estate:
Commercial
Principal deferral		11		8,327		8,314		(13	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		1		63		61		(2	)		(9	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Other commercial construction
Principal deferral		2		6,407		6,318		(89	)		—
Residential
Principal deferral		3		142		166		24			—
Combination of concession types		8		923		991		68			(66	)
Residential Alt-A
Principal deferral		3		662		698		36			—
Combination of concession types		6		1,006		1,029		23			(220	)
Consumer:
Home equity lines and loans
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		21		1,772		1,772		—			(204	)
Automobile
Principal deferral		43		603		603		—			—
Interest rate reduction		3		60		60		—			(3	)
Other		8		47		47		—			—
Combination of concession types		23		341		341		—			(36	)
Other
Principal deferral		7		38		38		—			—
Interest rate reduction		3		291		291		—			(63	)
Combination of concession types		19		906		906		—			(276	)
Total		193	$	57,384	$	57,297	$	(87	)	$	(1,011	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Three months ended June 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		15	$	4,870	$	4,822	$	(48	)	$	—
Other		1		1,460		1,657		197			—
Combination of concession types		2		1,490		980		(510	)		—
Real estate:
Commercial
Principal deferral		5		15,549		15,530		(19	)		—
Residential builder and developer
Principal deferral		7		17,496		16,722		(774	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		2		13,879		13,823		(56	)		(535	)
Other commercial construction
Principal deferral		2		364		363		(1	)		—
Residential
Principal deferral		8		1,216		1,358		142			—
Combination of concession types		18		69,210		65,890		(3,320	)		(186	)
Residential Alt-A
Principal deferral		1		99		102		3			—
Combination of concession types		8		1,187		1,294		107			(278	)
Consumer:
Home equity lines and loans
Principal deferral		2		101		103		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		8		406		406		—			(64	)
Automobile
Principal deferral		117		1,629		1,629		—			—
Interest rate reduction		7		104		104		—			(10	)
Other		28		73		73		—			—
Combination of concession types		62		1,044		1,044		—			(87	)
Other
Principal deferral		14		185		185		—			—
Interest rate reduction		1		12		12		—			(2	)
Combination of concession types		30		707		707		—			(234	)
Total		341	$	135,325	$	130,897	$	(4,428	)	$	(1,404	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

The tables below summarize the Company’s loan modification activities that were considered troubled debt restructurings for the six months ended June 30, 2014 and 2013:

			Recorded investment				Financial effects of modification
Six months ended June 30, 2014	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		51	$	19,368	$	19,199	$	(169	)	$	—
Other		1		19,593		19,593		—			—
Combination of concession types		5		9,836		9,766		(70	)		(14	)
Real estate:
Commercial
Principal deferral		24		15,371		15,316		(55	)		—
Interest rate reduction		1		255		252		(3	)		(48	)
Combination of concession types		2		409		462		53			(113	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Other commercial construction
Principal deferral		3		6,558		6,469		(89	)		—
Residential
Principal deferral		16		1,744		1,829		85			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		22		3,111		3,151		40			(348	)
Residential Alt-A
Principal deferral		5		828		900		72			—
Combination of concession types		16		2,752		2,765		13			(281	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Interest rate reduction		5		341		341		—			(76	)
Combination of concession types		36		3,628		3,628		—			(376	)
Automobile
Principal deferral		123		1,596		1,596		—			—
Interest rate reduction		3		60		60		—			(3	)
Other		19		108		108		—			—
Combination of concession types		46		591		591		—			(62	)
Other
Principal deferral		15		93		93		—			—
Interest rate reduction		3		291		291		—			(63	)
Other		1		45		45		—			—
Combination of concession types		33		1,372		1,372		—			(464	)
Total		436	$	89,914	$	89,797	$	(117	)	$	(1,880	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

			Recorded investment				Financial effects of modification
Six months ended June 30, 2013	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		39	$	6,876	$	6,804	$	(72	)	$	—
Other		2		48,660		48,857		197			—
Combination of concession types		3		1,832		1,322		(510	)		—
Real estate:
Commercial
Principal deferral		13		34,027		33,893		(134	)		—
Combination of concession types		2		582		581		(1	)		(56	)
Residential builder and developer
Principal deferral		15		18,853		18,062		(791	)		—
Other		1		4,039		3,888		(151	)		—
Combination of concession types		3		15,580		15,514		(66	)		(535	)
Other commercial construction
Principal deferral		2		364		363		(1	)		—
Residential
Principal deferral		15		1,782		1,965		183			—
Other		1		195		195		—			—
Combination of concession types		38		71,659		68,426		(3,233	)		(557	)
Residential Alt-A
Principal deferral		1		99		102		3			—
Combination of concession types		13		2,094		2,219		125			(388	)
Consumer:
Home equity lines and loans
Principal deferral		4		180		182		2			—
Interest rate reduction		1		99		99		—			(8	)
Other		1		106		106		—			—
Combination of concession types		10		617		617		—			(97	)
Automobile
Principal deferral		238		3,215		3,215		—			—
Interest rate reduction		9		140		140		—			(15	)
Other		45		232		232		—			—
Combination of concession types		123		1,597		1,597		—			(129	)
Other
Principal deferral		20		230		230		—			—
Interest rate reduction		1		12		12		—			(2	)
Other		1		12		12		—			—
Combination of concession types		72		1,924		1,924		—			(501	)
Total		673	$	215,006	$	210,557	$	(4,449	)	$	(2,288	)

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.

(b) Represents the present value of interest rate concessions discounted at the effective rate of the original loan.

XML

Fair Value Measurements - Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Financial assets:
Cash and cash equivalents	$ 1,917,436		$ 1,672,934	$ 1,474,502		$ 1,986,615
Interest-bearing deposits at banks	3,032,530		1,651,138
Trading account assets	313,325		376,131
Investment securities	12,120,195		8,796,497
Loans and leases:
Allowance for credit losses	(917,666)	(916,768)	(916,676)	(927,065)	(927,117)	(925,860)
Loans and leases, net	63,830,027		63,156,483
Financial liabilities:
Noninterest-bearing deposits	(26,088,763)		(24,661,007)
Time deposits	(3,285,995)		(3,523,838)
Deposits at Cayman Islands office	(237,890)		(322,746)
Long-term borrowings	(7,391,931)		(5,108,870)
Trading account liabilities	(202,159)		(249,797)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash and cash equivalents	1,835,382		1,596,877
Interest-bearing deposits at banks
Trading account assets	50,813		51,386
Investment securities	94,974		82,450
Loans and leases:
Commercial loans and leases
Commercial real estate loans
Residential real estate loans
Consumer loans
Allowance for credit losses
Loans and leases, net
Accrued interest receivable
Financial liabilities:
Noninterest-bearing deposits
Savings deposits and NOW accounts
Time deposits
Deposits at Cayman Islands office
Short-term borrowings
Long-term borrowings
Accrued interest payable
Trading account liabilities
Other financial instruments:
Commitments to originate real estate loans for sale
Commitments to sell real estate loans
Other credit-related commitments
Interest rate swap agreements used for interest rate risk management
Significant Observable Inputs (Level 2) [Member]
Financial assets:
Cash and cash equivalents	82,054		76,057
Interest-bearing deposits at banks	3,032,530		1,651,138
Trading account assets	262,512		324,745
Investment securities	11,814,650		8,384,106
Loans and leases:
Commercial loans and leases
Commercial real estate loans	204,669		67,505
Residential real estate loans	5,436,622		5,432,207
Consumer loans
Allowance for credit losses
Loans and leases, net	5,641,291		5,499,712
Accrued interest receivable	223,497		222,558
Financial liabilities:
Noninterest-bearing deposits	(26,088,763)		(24,661,007)
Savings deposits and NOW accounts	(40,216,607)		(38,611,021)
Time deposits	(3,306,300)		(3,542,789)
Deposits at Cayman Islands office	(237,890)		(322,746)
Short-term borrowings	(161,631)		(260,455)
Long-term borrowings	(7,549,272)		(5,244,902)
Accrued interest payable	(54,394)		(43,419)
Trading account liabilities	(202,159)		(249,797)
Other financial instruments:
Commitments to sell real estate loans	(10,832)		12,360
Other credit-related commitments
Interest rate swap agreements used for interest rate risk management	91,870		102,875
Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Interest-bearing deposits at banks
Trading account assets
Investment securities	215,755		223,938
Loans and leases:
Commercial loans and leases	18,753,794		18,457,288
Commercial real estate loans	26,107,087		25,950,690
Residential real estate loans	3,275,615		3,435,665
Consumer loans	10,524,381		10,201,087
Allowance for credit losses
Loans and leases, net	58,660,877		58,044,730
Financial liabilities:
Noninterest-bearing deposits
Savings deposits and NOW accounts
Time deposits
Deposits at Cayman Islands office
Short-term borrowings
Long-term borrowings
Accrued interest payable
Trading account liabilities
Other financial instruments:
Commitments to originate real estate loans for sale	22,023		3,941
Commitments to sell real estate loans
Other credit-related commitments	(117,940)		(118,886)
Interest rate swap agreements used for interest rate risk management
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	1,917,436		1,672,934
Interest-bearing deposits at banks	3,032,530		1,651,138
Trading account assets	313,325		376,131
Investment securities	12,120,195		8,796,497
Loans and leases:
Commercial loans and leases	19,105,892		18,705,216
Commercial real estate loans	26,374,274		26,148,208
Residential real estate loans	8,656,766		8,928,221
Consumer loans	10,610,761		10,291,514
Allowance for credit losses	(917,666)		(916,676)
Loans and leases, net	63,830,027		63,156,483
Accrued interest receivable	223,497		222,558
Financial liabilities:
Noninterest-bearing deposits	(26,088,763)		(24,661,007)
Savings deposits and NOW accounts	(40,216,607)		(38,611,021)
Time deposits	(3,285,995)		(3,523,838)
Deposits at Cayman Islands office	(237,890)		(322,746)
Short-term borrowings	(161,631)		(260,455)
Long-term borrowings	(7,391,931)		(5,108,870)
Accrued interest payable	(54,394)		(43,419)
Trading account liabilities	(202,159)		(249,797)
Other financial instruments:
Commitments to originate real estate loans for sale	22,023		3,941
Commitments to sell real estate loans	(10,832)		12,360
Other credit-related commitments	(117,940)		(118,886)
Interest rate swap agreements used for interest rate risk management	91,870		102,875
Estimate Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,917,436		1,672,934
Interest-bearing deposits at banks	3,032,530		1,651,138
Trading account assets	313,325		376,131
Investment securities	12,125,379		8,690,494
Loans and leases:
Commercial loans and leases	18,753,794		18,457,288
Commercial real estate loans	26,311,756		26,018,195
Residential real estate loans	8,712,237		8,867,872
Consumer loans	10,524,381		10,201,087
Loans and leases, net	64,302,168		63,544,442
Accrued interest receivable	223,497		222,558
Financial liabilities:
Noninterest-bearing deposits	(26,088,763)		(24,661,007)
Savings deposits and NOW accounts	(40,216,607)		(38,611,021)
Time deposits	(3,306,300)		(3,542,789)
Deposits at Cayman Islands office	(237,890)		(322,746)
Short-term borrowings	(161,631)		(260,455)
Long-term borrowings	(7,549,272)		(5,244,902)
Accrued interest payable	(54,394)		(43,419)
Trading account liabilities	(202,159)		(249,797)
Other financial instruments:
Commitments to originate real estate loans for sale	22,023		3,941
Commitments to sell real estate loans	(10,832)		12,360
Other credit-related commitments	(117,940)		(118,886)
Interest rate swap agreements used for interest rate risk management	$ 91,870		$ 102,875

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Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Other securities, Amortized cost	$ 350,751	$ 298,581
Other securities, Estimated fair value	350,751	298,581
Investment securities, available for sale, amortized cost	7,753,752	4,444,365
Investment securities available for sale, gross unrealized gains	272,750	127,333
Investment securities available for sale, gross unrealized losses	17,723	39,912
Investment securities available for sale, estimated fair value	8,008,779	4,531,786
Amortized cost for held to maturity	3,760,665	3,966,130
Gross unrealized gains for held to maturity	71,105	19,904
Gross unrealized losses for held to maturity	65,921	125,907
Estimated fair value for held to maturity	3,765,849	3,860,127
Total Amortized cost	11,865,168	8,709,076
Total for Gross unrealized gains	343,855	147,237
Total for Gross unrealized losses	83,644	165,819
Total for Estimated fair value	12,125,379	8,690,494
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	7,426,259	4,123,435
Investment securities available for sale, gross unrealized gains	191,716	61,001
Investment securities available for sale, gross unrealized losses	348	19,350
Investment securities available for sale, estimated fair value	7,617,627	4,165,086
Amortized cost for held to maturity	3,387,213	3,567,905
Gross unrealized gains for held to maturity	67,816	16,160
Gross unrealized losses for held to maturity	14,881	65,149
Estimated fair value for held to maturity	3,440,148	3,518,916
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	119	1,468
Investment securities available for sale, gross unrealized gains	4	387
Investment securities available for sale, gross unrealized losses	4	5
Investment securities available for sale, estimated fair value	119	1,850
Amortized cost for held to maturity	210,388	219,628
Gross unrealized gains for held to maturity
Gross unrealized losses for held to maturity	50,952	60,623
Estimated fair value for held to maturity	159,436	159,005
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	32,548	42,274
Investment securities available for sale, gross unrealized gains	24,100	21,666
Investment securities available for sale, gross unrealized losses	448	857
Investment securities available for sale, estimated fair value	56,200	63,083
Obligations of States and Political Subdivisions [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	9,999	10,484
Investment securities available for sale, gross unrealized gains	302	333
Investment securities available for sale, gross unrealized losses	59	6
Investment securities available for sale, estimated fair value	10,242	10,811
Amortized cost for held to maturity	154,733	169,684
Gross unrealized gains for held to maturity	3,289	3,744
Gross unrealized losses for held to maturity	88	135
Estimated fair value for held to maturity	157,934	173,293
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	138,362	137,828
Investment securities available for sale, gross unrealized gains	2,185	1,722
Investment securities available for sale, gross unrealized losses	15,784	19,465
Investment securities available for sale, estimated fair value	124,763	120,085
Amortized cost for held to maturity	8,331	8,913
Gross unrealized gains for held to maturity
Gross unrealized losses for held to maturity
Estimated fair value for held to maturity	8,331	8,913
U.S. Treasury and federal agencies [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	42,600	37,396
Investment securities available for sale, gross unrealized gains	324	382
Investment securities available for sale, gross unrealized losses	3	2
Investment securities available for sale, estimated fair value	42,921	37,776
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	103,865	91,480
Investment securities available for sale, gross unrealized gains	54,119	41,842
Investment securities available for sale, gross unrealized losses	1,077	227
Investment securities available for sale, estimated fair value	$ 156,907	$ 133,095

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Fair value measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair value measurements

12. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections at June 30, 2014.

Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.

• Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.

• Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

• Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability.

When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. The following is a description of the valuation methodologies used for the Company’s assets and liabilities that are measured on a recurring basis at estimated fair value.

Trading account assets and liabilities

Trading account assets and liabilities consist primarily of interest rate swap agreements and foreign exchange contracts with customers who require such services and offsetting positions with third parties to minimize the Company’s risk with respect to such transactions. The Company generally determines the fair value of its derivative trading account assets and liabilities using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. Mutual funds held in connection with deferred compensation arrangements have been classified as Level 1 valuations. Valuations of investments in municipal and other bonds can generally be obtained through reference to quoted prices in less active markets for the same or similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2.

Investment securities available for sale

The majority of the Company’s available-for-sale investment securities have been valued by reference to prices for similar securities or through model-based techniques in which all significant inputs are observable and, therefore, such valuations have been classified as Level 2. Certain investments in mutual funds and equity securities are actively traded and, therefore, have been classified as Level 1 valuations.

The Company sold substantially all of its privately issued mortgage-backed securities classified as available for sale during the second quarter of 2013. In prior periods, the Company generally used model-based techniques to value such securities because the Company was significantly restricted in the level of market observable assumptions that could be relied upon. Specifically, market assumptions regarding credit adjusted cash flows and liquidity influences on discount rates were difficult to observe at the individual bond level. Because of the inactivity in the markets and the lack of observable valuation inputs, the Company had classified the valuation of privately issued mortgage-backed securities as Level 3.

Included in collateralized debt obligations are securities backed by trust preferred securities issued by financial institutions and other entities. The Company could not obtain pricing indications for many of these securities from its two primary independent pricing sources. The Company, therefore, performed internal modeling to estimate the cash flows and fair value of its portfolio of securities backed by trust preferred securities at June 30, 2014 and December 31, 2013. The modeling techniques included estimating cash flows using bond-specific assumptions about future collateral defaults and related loss severities. The resulting cash flows were then discounted by reference to market yields observed in the single-name trust preferred securities market. In determining a market yield, applicable to the estimated cash flows, a margin over LIBOR, ranging from 4% to 11%, with a weighted-average of 8%, was used. Significant unobservable inputs used in the determination of estimated fair value of collateralized debt obligations are included in the accompanying table of significant unobservable inputs to Level 3 measurements. At June 30, 2014, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities were $33 million and $56 million, respectively, and at December 31, 2013 were $42 million and $63 million, respectively. Privately issued mortgage-backed securities and securities backed by trust preferred securities issued by financial institutions and other entities constituted all of the available-for-sale investment securities classified as Level 3 valuations.

The Company ensures an appropriate control framework is in place over the valuation processes and techniques used for significant Level 3 fair value measurements. Internal pricing models used for significant valuation measurements have generally been subjected to validation procedures including testing of mathematical constructs, review of valuation methodology and significant assumptions used.

Real estate loans held for sale

The Company utilizes commitments to sell real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. The carrying value of hedged real estate loans held for sale includes changes in estimated fair value during the hedge period. Typically, the Company attempts to hedge real estate loans originated for sale from the date of close through the sale date. The fair value of hedged real estate loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans with similar characteristics and, accordingly, such loans have been classified as a Level 2 valuation.

Commitments to originate real estate loans for sale and commitments to sell real estate loans

The Company enters into various commitments to originate real estate loans for sale and commitments to sell real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value on the consolidated balance sheet. The estimated fair values of such commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans to certain government-sponsored entities and other parties. The fair valuations of commitments to sell real estate loans generally result in a Level 2 classification. The estimated fair value of commitments to originate real estate loans for sale are adjusted to reflect the Company’s anticipated commitment expirations. The estimated commitment expirations are considered significant unobservable inputs contributing to the Level 3 classification of commitments to originate real estate loans for sale. Significant unobservable inputs used in the determination of estimated fair value of commitments to originate real estate loans for sale are included in the accompanying table of significant unobservable inputs to Level 3 measurements.

Interest rate swap agreements used for interest rate risk management

The Company utilizes interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of earning assets and interest-bearing liabilities. The Company generally determines the fair value of its interest rate swap agreements using externally developed pricing models based on market observable inputs and, therefore, classifies such valuations as Level 2. The Company has considered counterparty credit risk in the valuation of its interest rate swap agreement assets and has considered its own credit risk in the valuation of its interest rate swap agreement liabilities.

The following tables present assets and liabilities at June 30, 2014 and December 31, 2013 measured at estimated fair value on a recurring basis:

	Fair value measurements at June 30, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	313,325		50,813		262,512		—
Investment securities available for sale:
U.S. Treasury and federal agencies		42,921		—		42,921		—
Obligations of states and political subdivisions		10,242		—		10,242		—
Mortgage-backed securities:
Government issued or guaranteed		7,617,627		—		7,617,627		—
Privately issued		119		—		—		119
Collateralized debt obligations		56,200		—		—		56,200
Other debt securities		124,763		—		124,763		—
Equity securities		156,907		94,974		61,933		—
		8,008,779		94,974		7,857,486		56,319
Real estate loans held for sale		623,380		—		623,380		—
Other assets (b)		117,718		—		95,503		22,215
Total assets	$	9,063,202		145,787		8,838,881		78,534
Trading account liabilities	$	202,159		—		202,159		—
Other liabilities (b)		14,657		—		14,465		192
Total liabilities	$	216,816		—		216,624		192

	Fair value measurements at December 31, 2013		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	376,131		51,386		324,745		—
Investment securities available for sale:
U.S. Treasury and federal agencies		37,776		—		37,776		—
Obligations of states and political subdivisions		10,811		—		10,811		—
Mortgage-backed securities:
Government issued or guaranteed		4,165,086		—		4,165,086		—
Privately issued		1,850		—		—		1,850
Collateralized debt obligations		63,083		—		—		63,083
Other debt securities		120,085		—		120,085		—
Equity securities		133,095		82,450		50,645		—
		4,531,786		82,450		4,384,403		64,933
Real estate loans held for sale		468,650		—		468,650		—
Other assets (b)		123,568		—		115,952		7,616
Total assets	$	5,500,135		133,836		5,293,750		72,549
Trading account liabilities	$	249,797		—		249,797		—
Other liabilities (b)		4,392		—		717		3,675
Total liabilities	$	254,189		—		250,514		3,675

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months and six months ended June 30, 2014 and 2013.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—March 31, 2014	$	696		$	61,768		$	12,589
Total gains realized/unrealized:
Included in earnings		—			—			31,517	(b)
Included in other comprehensive income		205	(e)		4,486	(e)		—
Sales		—			—			—
Settlements		(782	)		(10,054	)		—
Transfers in and/or out of Level 3 (c)		—			—			(22,083	)(d)
Balance—June 30, 2014	$	119		$	56,200		$	22,023
Changes in unrealized gains included in earnings related to assets still held at June 30, 2014	$	—		$	—		$	20,215	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—March 31, 2013	$	993,247		$	61,718		$	36,119
Total gains (losses) realized/unrealized:
Included in earnings		(46,302	)(a)		—			15,500	(b)
Included in other comprehensive income		90,203	(e)		(1,277	)(e)		—
Sales		(978,608	)		—			—
Settlements		(53,268	)		(525	)		—
Transfers in and/or out of Level 3 (c)		—			—			(44,211	)(d)
Balance—June 30, 2013	$	5,272		$	59,916		$	7,408
Changes in unrealized gains included in earnings related to assets still held at June 30, 2013	$	—		$	—		$	4,123	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains realized/unrealized:
Included in earnings		—			—			53,900	(b)
Included in other comprehensive income		272	(e)		9,132	(e)		—
Settlements		(2,003	)		(16,015	)		—
Transfers in and/or out of Level 3 (c)		—			—			(35,818	)(d)
Balance—June 30, 2014	$	119		$	56,200		$	22,023
Changes in unrealized gains included in earnings related to assets still held at June 30, 2014	$	—		$	—		$	24,099	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance—January 1, 2013	$	1,023,886		$	61,869		$	47,859
Total gains (losses) realized/unrealized:
Included in earnings		(56,102	)(a)		—			58,812	(b)
Included in other comprehensive income		116,584	(e)		(537	)(e)		—
Sales		(978,608	)		—			—
Settlements		(100,488	)		(1,416	)		—
Transfers in and/or out of Level 3 (c)		—			—			(99,263	)(d)
Balance—June 30, 2013	$	5,272		$	59,916		$	7,408
Changes in unrealized gains included in earnings related to assets still held at June 30, 2013	$	—		$	—		$	5,132	(b)

(a) Reported as an OTTI loss or as gain (loss) on bank investment securities in the consolidated statement of income.

(b) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(c) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(d) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(e) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements. The more significant of those assets follow.

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2, unless significant adjustments have been made to the valuation that are not readily observable by market participants. Non-real estate collateral supporting commercial loans generally consists of business assets such as receivables, inventory and equipment. Fair value estimations are typically determined by discounting recorded values of those assets to reflect estimated net realizable value considering specific borrower facts and circumstances and the experience of credit personnel in their dealings with similar borrower collateral liquidations. Such discounts were generally in the range of 5% to 80% at June 30, 2014. As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3. Loans subject to nonrecurring fair value measurement were $212 million at June 30, 2014 ($129 million and $83 million of which were classified as Level 2 and Level 3, respectively), $222 million at December 31, 2013 ($173 million and $49 million of which were classified as Level 2 and Level 3, respectively) and $254 million at June 30, 2013 ($167 million and $87 million of which were classified as Level 2 and Level 3, respectively). Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on June 30, 2014 were decreases of $32 million and $47 million for the three- and six-month periods ended June 30, 2014, respectively. Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on June 30, 2013 were decreases of $34 million and $69 million for the three- and six-month periods ended June 30, 2013, respectively.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans are primarily comprised of commercial and residential real property and are generally measured at the lower of cost or fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2. Assets taken in foreclosure of defaulted loans held by the company on June 30, 2014 subject to nonrecurring fair value measurement were $8 million and $15 million for the three-month and six-month periods ended June 30, 2014, respectively. Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement were $15 million at each of June 30, 2014 and 2013. Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month and six-month periods ended June 30, 2014 and 2013.

Significant unobservable inputs to Level 3 measurements

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at June 30, 2014 and December 31, 2013:

	Fair value at June 30, 2014		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	119	Two independent pricing quotes	—		—
Collateralized debt obligations		56,200	Discounted cash flow	Probability of default		15%-56% (37%)
				Loss severity		100%
Net other assets (liabilities)(a)		22,023	Discounted cash flow	Commitment expirations		0%-97% (18%)
	Fair value at December 31, 2013		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	1,850	Two independent pricing quotes	—		—
Collateralized debt obligations		63,083	Discounted cash flow	Probability of default		17%-55% (39%)
				Loss severity		100%
Net other assets (liabilities)(a)		3,941	Discounted cash flow	Commitment expirations		0%-90% (20%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Sensitivity of fair value measurements to changes in unobservable inputs

An increase (decrease) in the probability of default and loss severity for mortgage-backed securities and collateralized debt securities would generally result in a lower (higher) fair value measurement.

An increase (decrease) in the estimate of expirations for commitments to originate real-estate loans would generally result in a lower (higher) fair value measurement. Estimated commitment expirations are derived considering loan type, changes in interest rates and remaining length of time until closing.

Disclosures of fair value of financial instruments

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of

GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. Additional information about the assumptions and calculations utilized follows.

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	June 30, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,917,436		$	1,917,436		$	1,835,382	$	82,054		$	—
Interest-bearing deposits at banks		3,032,530			3,032,530			—		3,032,530			—
Trading account assets		313,325			313,325			50,813		262,512			—
Investment securities		12,120,195			12,125,379			94,974		11,814,650			215,755
Loans and leases:
Commercial loans and leases		19,105,892			18,753,794			—		—			18,753,794
Commercial real estate loans		26,374,274			26,311,756			—		204,669			26,107,087
Residential real estate loans		8,656,766			8,712,237			—		5,436,622			3,275,615
Consumer loans		10,610,761			10,524,381			—		—			10,524,381
Allowance for credit losses		(917,666	)		—			—		—			—
Loans and leases, net		63,830,027			64,302,168			—		5,641,291			58,660,877
Accrued interest receivable		223,497			223,497			—		223,497			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,088,763	)	$	(26,088,763	)	$	—	$	(26,088,763	)	$	—
Savings deposits and NOW accounts		(40,216,607	)		(40,216,607	)		—		(40,216,607	)		—
Time deposits		(3,285,995	)		(3,306,300	)		—		(3,306,300	)		—
Deposits at Cayman Islands office		(237,890	)		(237,890	)		—		(237,890	)		—
Short-term borrowings		(161,631	)		(161,631	)		—		(161,631	)		—
Long-term borrowings		(7,391,931	)		(7,549,272	)		—		(7,549,272	)		—
Accrued interest payable		(54,394	)		(54,394	)		—		(54,394	)		—
Trading account liabilities		(202,159	)		(202,159	)		—		(202,159	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	22,023		$	22,023		$	—	$	—		$	22,023
Commitments to sell real estate loans		(10,832	)		(10,832	)		—		(10,832	)		—
Other credit-related commitments		(117,940	)		(117,940	)		—		—			(117,940	)
Interest rate swap agreements used for interest rate risk management		91,870			91,870			—		91,870			—

	December 31, 2013
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
							(in thousands)
Financial assets:
Cash and cash equivalents	$	1,672,934		$	1,672,934		$	1,596,877	$	76,057		$	—
Interest-bearing deposits at banks		1,651,138			1,651,138			—		1,651,138			—
Trading account assets		376,131			376,131			51,386		324,745			—
Investment securities		8,796,497			8,690,494			82,450		8,384,106			223,938
Loans and leases:
Commercial loans and leases		18,705,216			18,457,288			—		—			18,457,288
Commercial real estate loans		26,148,208			26,018,195			—		67,505			25,950,690
Residential real estate loans		8,928,221			8,867,872			—		5,432,207			3,435,665
Consumer loans		10,291,514			10,201,087			—		—			10,201,087
Allowance for credit losses		(916,676	)		—			—		—			—
Loans and leases, net		63,156,483			63,544,442			—		5,499,712			58,044,730
Accrued interest receivable		222,558			222,558			—		222,558			—
Financial liabilities:
Noninterest-bearing deposits	$	(24,661,007	)	$	(24,661,007	)	$	—	$	(24,661,007	)	$	—
Savings deposits and NOW accounts		(38,611,021	)		(38,611,021	)		—		(38,611,021	)		—
Time deposits		(3,523,838	)		(3,542,789	)		—		(3,542,789	)		—
Deposits at Cayman Islands office		(322,746	)		(322,746	)		—		(322,746	)		—
Short-term borrowings		(260,455	)		(260,455	)		—		(260,455	)		—
Long-term borrowings		(5,108,870	)		(5,244,902	)		—		(5,244,902	)		—
Accrued interest payable		(43,419	)		(43,419	)		—		(43,419	)		—
Trading account liabilities		(249,797	)		(249,797	)		—		(249,797	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	3,941		$	3,941		$	—	$	—		$	3,941
Commitments to sell real estate loans		12,360			12,360			—		12,360			—
Other credit-related commitments		(118,886	)		(118,886	)		—		—			(118,886	)
Interest rate swap agreements used for interest rate risk management		102,875			102,875			—		102,875			—

The following assumptions, methods and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

Cash and cash equivalents, interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable

Due to the nature of cash and cash equivalents and the near maturity of interest-bearing deposits at banks, deposits at Cayman Islands office, short-term borrowings, accrued interest receivable and accrued interest payable, the Company estimated that the carrying amount of such instruments approximated estimated fair value.

Investment securities

Estimated fair values of investments in readily marketable securities were generally based on quoted market prices. Investment securities that were not readily marketable were assigned amounts based on estimates provided by outside parties or modeling techniques that relied upon discounted calculations of projected cash flows or, in the case of other investment securities, which include capital stock of the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York, at an amount equal to the carrying amount.

Loans and leases

In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end. A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans.

Projected loan cash flows were adjusted for estimated credit losses. However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans and leases would seek.

Deposits

Pursuant to GAAP, the estimated fair value ascribed to noninterest-bearing deposits, savings deposits and NOW accounts must be established at carrying value because of the customers’ ability to withdraw funds immediately. Time deposit accounts are required to be revalued based upon prevailing market interest rates for similar maturity instruments. As a result, amounts assigned to time deposits were based on discounted cash flow calculations using prevailing market interest rates based on the Company’s pricing at the respective date for deposits with comparable remaining terms to maturity.

The Company believes that deposit accounts have a value greater than that prescribed by GAAP. The Company feels, however, that the value associated with these deposits is greatly influenced by characteristics of the buyer, such as the ability to reduce the costs of servicing the deposits and deposit attrition which often occurs following an acquisition.

Long-term borrowings

The amounts assigned to long-term borrowings were based on quoted market prices, when available, or were based on discounted cash flow calculations using prevailing market interest rates for borrowings of similar terms and credit risk.

Other commitments and contingencies

As described in note 13, in the normal course of business, various commitments and contingent liabilities are outstanding, such as loan commitments, credit guarantees and letters of credit. The Company’s pricing of such financial instruments is based largely on credit quality and relationship, probability of funding and other requirements. Loan commitments often have fixed expiration dates and contain termination and other clauses which provide for relief from funding in the event of significant deterioration in the credit quality of the customer. The rates and terms of the Company’s loan commitments, credit guarantees and letters of credit are competitive with other financial institutions operating in markets served by the Company. The Company believes that the carrying amounts, which are included in other liabilities, are reasonable estimates of the fair value of these financial instruments.

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities.

Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.