Shareholders' equity

12 Months Ended

Dec. 31, 2014

Equity [Abstract]

Shareholders' equity

10.    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:

	December 31, 2014				December 31, 2013
	Shares Issued and Outstanding		Carrying Value		Shares Issued and Outstanding		Carrying Value
	(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	$	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		151,500
Series D(b)
Fixed Rate Non-cumulative Perpetual Preferred Stock, Series D, $10,000 liquidation preference per share		50,000		500,000		50,000		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. 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 warrant were exercised in a “cashless” exercise, resulting in the issuance of 186,589 common shares. During 2014 and 2013, 427,905 and 69,127, respectively, of the Series A warrants were exercised in “cashless” exercises, resulting in the issuance of 169,543 and 25,427 common shares. Remaining outstanding Series A warrants were 721,490 at December 31, 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 LIBOR 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 ten-year warrant to purchase 95,383 shares of M&T common stock at $518.96 per share was outstanding at each of December 31, 2014 and 2013. The obligation under that warrant was assumed by M&T in an acquisition.