Earnings per common share

9 Months Ended

Sep. 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 September 30						Nine months ended September 30
	2014			2013			2014			2013
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	275,344			294,479		$	788,697			917,058
Less: Preferred stock dividends (a)		(20,443	)		(13,363	)		(55,560	)		(40,088	)
Amortization of preferred stock discount (a)		—			(2,235	)		—			(6,575	)
Net income available to common equity		254,901			278,881			733,137			870,395
Less: Income attributable to unvested stock-based compensation awards		(2,996	)		(3,545	)		(8,830	)		(11,451	)
Net income available to common shareholders	$	251,905			275,336		$	724,307			858,944
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		132,832			130,836			132,372			130,088
Less: Unvested stock-based compensation awards		(1,567	)		(1,665	)		(1,590	)		(1,719	)
Weighted-average shares outstanding		131,265			129,171			130,782			128,369
Basic earnings per common share	$	1.92			2.13		$	5.54			6.69

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

The computations of diluted earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2014			2013			2014			2013
	(in thousands, except per share)
Net income available to common equity	$	254,901			278,881		$	733,137			870,395
Less: Income attributable to unvested stock-based compensation awards		(2,984	)		(3,525	)		(8,793	)		(11,395	)
Net income available to common shareholders	$	251,917			275,356		$	724,344			859,000
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		132,832			130,836			132,372			130,088
Less: Unvested stock-based compensation awards		(1,567	)		(1,665	)		(1,590	)		(1,719	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		863			1,094			916			943
Adjusted weighted-average shares outstanding		132,128			130,265			131,698			129,312
Diluted earnings per common share	$	1.91			2.11		$	5.50			6.64

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 3.1 million common shares during the three-month periods ended September 30, 2014 and 2013, respectively, and 2.1 million and 4.1 million common shares during the nine-month periods ended September 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.