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 March 31, 2015

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 incorporation or organization)	(I.R.S. Employer 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 April 30, 2015: 132,970,139 shares.

M&T BANK CORPORATION

FORM 10-Q

For the Quarterly Period Ended March 31, 2015

Table of Contents of Information Required in Report		Page
Part I. FINANCIAL INFORMATION
Item 1.	Financial Statements.
	CONSOLIDATED BALANCE SHEET - March 31, 2015 and December 31, 2014		3
	CONSOLIDATED STATEMENT OF INCOME - Three months ended March 31, 2015 and 2014		4
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - Three months ended March 31, 2015 and 2014		5
	CONSOLIDATED STATEMENT OF CASH FLOWS - Three months ended March 31, 2015 and 2014		6
	CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY - Three months ended March  31, 2015 and 2014		7
	NOTES TO FINANCIAL STATEMENTS		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.		50
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.		91
Item 4.	Controls and Procedures.		91
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings.		91
Item 1A.	Risk Factors.		92
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.		93
Item 3.	Defaults Upon Senior Securities.		93
Item 4.	Mine Safety Disclosures.		93
Item 5.	Other Information.		93
Item 6.	Exhibits.		94
SIGNATURES			95
EXHIBIT INDEX			95

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (Unaudited)

Dollars in thousands, except per share		March 31, 2015			December 31, 2014
Assets	Cash and due from banks	$	1,269,816			1,289,965
	Interest-bearing deposits at banks		6,291,491			6,470,867
	Federal funds sold		97,037			83,392
	Trading account		363,085			308,175
	Investment securities (includes pledged securities that can be sold or repledged of $1,611,069 at March 31, 2015; $1,631,267 at December 31, 2014)
	Available for sale (cost: $10,425,720 at March 31, 2015; $8,919,324 at December 31, 2014)		10,703,500			9,156,932
	Held to maturity (fair value: $3,411,834 at March 31, 2015; $3,538,282 at December 31, 2014)		3,360,812			3,507,868
	Other (fair value: $328,958 at March 31, 2015; $328,742 at December 31, 2014)		328,958			328,742
	Total investment securities		14,393,270			12,993,542
	Loans and leases		67,328,490			66,899,369
	Unearned discount		(229,448	)		(230,413	)
	Loans and leases, net of unearned discount		67,099,042			66,668,956
	Allowance for credit losses		(921,373	)		(919,562	)
	Loans and leases, net		66,177,669			65,749,394
	Premises and equipment		602,096			612,984
	Goodwill		3,524,625			3,524,625
	Core deposit and other intangible assets		28,234			35,027
	Accrued interest and other assets		5,630,460			5,617,564
	Total assets	$	98,377,783			96,685,535
Liabilities	Noninterest-bearing deposits	$	27,181,120			26,947,880
	NOW accounts		2,149,537			2,307,815
	Savings deposits		41,138,792			41,085,803
	Time deposits		2,946,126			3,063,973
	Deposits at Cayman Islands office		178,545			176,582
	Total deposits		73,594,120			73,582,053
	Federal funds purchased and agreements to repurchase securities		193,495			192,676
	Accrued interest and other liabilities		1,552,724			1,567,951
	Long-term borrowings		10,509,143			9,006,959
	Total liabilities		85,849,482			84,349,639
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 March 31, 2015 and at December 31, 2014; Liquidation preference of $10,000 per share: 50,000 shares at March 31, 2015 and December 31, 2014		1,231,500			1,231,500
	Common stock, $.50 par, 250,000,000 shares authorized, 132,909,718 shares issued at March 31, 2015; 132,312,931 shares issued at December 31, 2014		66,455			66,157
	Common stock issuable, 36,360 shares at March 31, 2015; 41,330 shares at December 31, 2014		2,310			2,608
	Additional paid-in capital		3,445,707			3,409,506
	Retained earnings		7,934,820			7,807,119
	Accumulated other comprehensive income (loss), net		(152,491	)		(180,994	)
	Total shareholders’ equity		12,528,301			12,335,896
	Total liabilities and shareholders’ equity	$	98,377,783			96,685,535

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

		Three months ended March 31
In thousands, except per share		2015			2014
Interest income	Loans and leases, including fees	$	647,179			645,222
	Deposits at banks		3,118			1,884
	Federal funds sold		24			16
	Trading account		491			427
	Investment securities
	Fully taxable		85,957			73,899
	Exempt from federal taxes		1,318			1,504
	Total interest income		738,087			722,952
Interest expense	NOW accounts		311			297
	Savings deposits		10,219			11,601
	Time deposits		3,740			3,940
	Deposits at Cayman Islands office		147			208
	Short-term borrowings		34			32
	Long-term borrowings		64,048			50,441
	Total interest expense		78,499			66,519
	Net interest income		659,588			656,433
	Provision for credit losses		38,000			32,000
	Net interest income after provision for credit losses		621,588			624,433
Other income	Mortgage banking revenues		101,601			80,049
	Service charges on deposit accounts		102,344			104,198
	Trust income		123,734			121,252
	Brokerage services income		15,461			16,500
	Trading account and foreign exchange gains		6,231			6,447
	Loss on bank investment securities		(98	)		—
	Equity in earnings of Bayview Lending Group LLC		(4,191	)		(4,454	)
	Other revenues from operations		95,121			96,115
	Total other income		440,203			420,107
Other expense	Salaries and employee benefits		389,893			371,326
	Equipment and net occupancy		66,470			71,167
	Printing, postage and supplies		9,590			10,956
	Amortization of core deposit and other intangible assets		6,793			10,062
	FDIC assessments		10,660			15,488
	Other costs of operations		202,969			211,235
	Total other expense		686,375			690,234
	Income before taxes		375,416			354,306
	Income taxes		133,803			125,289
	Net income	$	241,613			229,017
	Net income available to common shareholders
	Basic	$	218,830			211,720
	Diluted		218,837			211,731
	Net income per common share
	Basic	$	1.66			1.63
	Diluted		1.65			1.61
	Cash dividends per common share	$	.70			.70
	Average common shares outstanding
	Basic		132,049			130,212
	Diluted		132,769			131,126

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

	Three months ended March 31
In thousands	2015			2014
Net income	$	241,613		$	229,017
Other comprehensive income, net of tax and reclassification adjustments:
Net unrealized gains on investment securities		25,339			38,214
Cash flow hedges adjustments		871			—
Foreign currency translation adjustment		(2,384	)		(136	)
Defined benefit plans liability adjustment		4,677			820
Total other comprehensive income		28,503			38,898
Total comprehensive income	$	270,116		$	267,915

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

		Three months ended March 31
In thousands		2015			2014
Cash flows from operating activities	Net income	$	241,613			229,017
	Adjustments to reconcile net income to net cash provided by operating activities
	Provision for credit losses		38,000			32,000
	Depreciation and amortization of premises and equipment		24,178			24,708
	Amortization of capitalized servicing rights		12,199			17,792
	Amortization of core deposit and other intangible assets		6,793			10,062
	Provision for deferred income taxes		37,052			42,256
	Asset write-downs		2,379			1,117
	Net gain on sales of assets		(1,066	)		(852	)
	Net change in accrued interest receivable, payable		(2,200	)		(3,185	)
	Net change in other accrued income and expense		(80,084	)		57,884
	Net change in loans originated for sale		197,708			122,406
	Net change in trading account assets and liabilities		(18,206	)		27,893
	Net cash provided by operating activities		458,366			561,098
Cash flows from investing activities	Proceeds from sales of investment securities
	Available for sale		693			—
	Other		132			146
	Proceeds from maturities of investment securities
	Available for sale		369,649			166,324
	Held to maturity		148,708			92,305
	Purchases of investment securities
	Available for sale		(1,871,491	)		(1,709,847	)
	Held to maturity		(7,442	)		(3,238	)
	Other		(348	)		(258	)
	Net increase in loans and leases		(666,220	)		(220,551	)
	Net (increase) decrease in interest bearing deposits at banks		179,376			(1,648,047	)
	Capital expenditures, net		(9,598	)		(16,725	)
	Net (increase) decrease in loan servicing advances		76,145			(122,910	)
	Other, net		(21,940	)		21,763
	Net cash used by investing activities		(1,802,336	)		(3,441,038	)
Cash flows from financing activities	Net increase (decrease) in deposits		(4,543	)		1,581,705
	Net increase (decrease) in short-term borrowings		819			(30,246	)
	Proceeds from long-term borrowings		1,500,000			1,498,688
	Payments on long-term borrowings		(1,797	)		(352,245	)
	Proceeds from issuance of preferred stock		—			346,500
	Dividends paid - common		(93,631	)		(92,406	)
	Dividends paid - preferred		(17,368	)		(6,080	)
	Other, net		(46,014	)		24,208
	Net cash provided by financing activities		1,337,466			2,970,124
	Net increase (decrease) in cash and cash equivalents		(6,504	)		90,184
	Cash and cash equivalents at beginning of period		1,373,357			1,672,934
	Cash and cash equivalents at end of period	$	1,366,853			1,763,118
Supplemental disclosure of cash flow information	Interest received during the period	$	726,475			695,653
	Interest paid during the period		75,776			61,841
	Income taxes paid during the period		88,578			4,789
Supplemental schedule of noncash investing and financing activities	Securitization of residential mortgage loans allocated to
	Available-for-sale investment securities	$	12,920			29,785
	Capitalized servicing rights		143			372
	Real estate acquired in settlement of loans		10,846			8,886

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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
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		—		—		—			—			229,017			38,898			267,915
Preferred stock cash dividends		—		—		—			—			(14,674	)		—			(14,674	)
Issuance of Series E preferred stock		350,000		—		—			(3,500	)		—			—			346,500
Stock-based compensation plans:
Compensation expense, net		—		123		—			13,999			—			—			14,122
Exercises of stock options, net		—		266		—			49,228			—			—			49,494
Stock purchase plan		—		43		—			9,545			—			—			9,588
Directors’ stock plan		—		2		—			439			—			—			441
Deferred compensation plans, net, including dividend equivalents		—		2		(299	)		265			(29	)		—			(61	)
Other		—		—		—			412			—			—			412
Common stock cash dividends - $.70 per share		—		—		—			—			(92,406	)		—			(92,406	)
Balance - March 31, 2014	$	1,231,500		65,694		2,616			3,302,402			7,309,912			(25,261	)		11,886,863
2015
Balance - January 1, 2015	$	1,231,500		66,157		2,608			3,409,506			7,807,119			(180,994	)		12,335,896
Total comprehensive income		—		—		—			—			241,613			28,503			270,116
Preferred stock cash dividends		—		—		—			—			(20,318	)		—			(20,318	)
Exercise of 2,315 Series A stock warrants into 904 shares of common stock		—		1		—			(1	)		—			—			—
Stock-based compensation plans:
Compensation expense, net		—		147		—			5,425			—			—			5,572
Exercises of stock options, net		—		101		—			19,378			—			—			19,479
Stock purchase plan				45					10,301									10,346
Directors’ stock plan		—		2		—			423			—			—			425
Deferred compensation plans, net, including dividend equivalents		—		2		(298	)		270			(25	)		—			(51	)
Other		—		—		—			405			—			—			405
Common stock cash dividends - $.70 per share		—		—		—			—			(93,569	)		—			(93,569	)
Balance - March 31, 2015	$	1,231,500		66,455		2,310			3,445,707			7,934,820			(152,491	)		12,528,301

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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 2014 Annual Report. Additionally, effective January 1, 2015 the Company made an accounting policy election in accordance with amended accounting guidance issued by the Financial Accounting Standards Board in January 2014 to account for investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method, the Company 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 adoption of the amended guidance did not have a significant effect on the Company’s financial position or results of operation, but did result in the restatement of the consolidated statement of income for the three-month period ended March 31, 2014 to remove $12 million of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The cumulative effect adjustment associated with adopting the amended guidance was not material as of the beginning of any period presented in these consolidated financial statements. See note 11 for information regarding the Company’s investments in qualified affordable housing projects.

In the opinion of management, all adjustments necessary for a fair presentation have been made and, except as described above, 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 March 31, 2015 total consideration to be paid was valued at approximately $5.5 billion.

At March 31, 2015, Hudson City had $36.1 billion of assets, including $20.9 billion of loans and $8.3 billion of investment securities, and $31.3 billion of liabilities, including $18.9 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 commenced a major initiative, including the hiring of outside consulting firms, intended to fully address the Federal Reserve Bank’s concerns. On April 3, 2015, M&T was advised that the Federal Reserve Board intends to act on the M&T and Hudson City merger application no later than September 30, 2015. As a result, 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 from

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

2. Acquisitions, continued

April 30, 2015 to October 31, 2015. Nevertheless, there can be no assurances that the merger will be completed by that date.

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)
March 31, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,672		1,563		1	$	163,234
Obligations of states and political subdivisions		7,704		199		53		7,850
Mortgage-backed securities:
Government issued or guaranteed		10,008,191		265,739		8,709		10,265,221
Privately issued		96		2		3		95
Collateralized debt obligations		29,704		19,360		1,786		47,278
Other debt securities		138,366		1,909		19,002		121,273
Equity securities		79,987		18,999		437		98,549
		10,425,720		307,771		29,991		10,703,500
Investment securities held to maturity:
Obligations of states and political subdivisions		148,698		2,178		350		150,526
Mortgage-backed securities:
Government issued or guaranteed		3,007,420		88,417		4,024		3,091,813
Privately issued		197,509		1,421		36,620		162,310
Other debt securities		7,185		—		—		7,185
		3,360,812		92,016		40,994		3,411,834
Other securities		328,958		—		—		328,958
Total	$	14,115,490		399,787		70,985	$	14,444,292
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,408		544		5	$	161,947
Obligations of states and political subdivisions		8,027		224		53		8,198
Mortgage-backed securities:
Government issued or guaranteed		8,507,571		223,889		337		8,731,123
Privately issued		104		2		3		103
Collateralized debt obligations		30,073		21,276		1,033		50,316
Other debt securities		138,240		1,896		18,648		121,488
Equity securities		73,901		11,020		1,164		83,757
		8,919,324		258,851		21,243		9,156,932
Investment securities held to maturity:
Obligations of states and political subdivisions		148,961		2,551		189		151,323
Mortgage-backed securities:
Government issued or guaranteed		3,149,320		78,485		7,000		3,220,805
Privately issued		201,733		1,143		44,576		158,300
Other debt securities		7,854		—		—		7,854
		3,507,868		82,179		51,765		3,538,282
Other securities		328,742		—		—		328,742
Total	$	12,755,934		341,030		73,008	$	13,023,956

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the quarters ended March 31, 2015 and 2014.

At March 31, 2015, 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	$	9,059		9,117
Due after one year through five years		163,114		165,027
Due after five years through ten years		3,272		3,314
Due after ten years		162,001		162,177
		337,446		339,635
Mortgage-backed securities available for sale		10,008,287		10,265,316
	$	10,345,733		10,604,951
Debt securities held to maturity:
Due in one year or less	$	27,663		27,865
Due after one year through five years		87,320		88,357
Due after five years through ten years		33,715		34,304
Due after ten years		7,185		7,185
		155,883		157,711
Mortgage-backed securities held to maturity		3,204,929		3,254,123
	$	3,360,812		3,411,834

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

A summary of investment securities that as of March 31, 2015 and December 31, 2014 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)
March 31, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	4,681		(1	)		—		—
Obligations of states and political subdivisions		986		(4	)		1,524		(49	)
Mortgage-backed securities:
Government issued or guaranteed		1,603,068		(8,597	)		4,138		(112	)
Privately issued		—		—			59		(3	)
Collateralized debt obligations		6,091		(1,255	)		5,220		(531	)
Other debt securities		12,689		(443	)		92,304		(18,559	)
Equity securities		374		(437	)		—		—
		1,627,889		(10,737	)		103,245		(19,254	)
Investment securities held to maturity:
Obligations of states and political subdivisions		35,272		(317	)		1,802		(33	)
Mortgage-backed securities:
Government issued or guaranteed		16,660		(85	)		266,979		(3,939	)
Privately issued		—		—			131,779		(36,620	)
		51,932		(402	)		400,560		(40,592	)
Total	$	1,679,821		(11,139	)		503,805		(59,846	)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	6,505		(5	)		—		—
Obligations of states and political subdivisions		1,785		(52	)		121		(1	)
Mortgage-backed securities:
Government issued or guaranteed		39,001		(186	)		5,555		(151	)
Privately issued		—		—			65		(3	)
Collateralized debt obligations		2,108		(696	)		5,512		(337	)
Other debt securities		14,017		(556	)		92,661		(18,092	)
Equity securities		2,138		(1,164	)		—		—
		65,554		(2,659	)		103,914		(18,584	)
Investment securities held to maturity:
Obligations of states and political subdivisions		29,886		(184	)		268		(5	)
Mortgage-backed securities:
Government issued or guaranteed		137,413		(361	)		446,780		(6,639	)
Privately issued		—		—			127,512		(44,576	)
		167,299		(545	)		574,560		(51,220	)
Total	$	232,853		(3,204	)		678,474		(69,804	)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

The Company owned 294 individual investment securities with aggregate gross unrealized losses of $71 million at March 31, 2015. Based on a review of each of the securities in the investment securities portfolio at March 31, 2015, the Company concluded that it expected to recover the amortized cost basis of its investment. As of March 31, 2015, 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 March 31, 2015, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $329 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 that is included in the consolidated balance sheet were as follows:

	March 31, 2015		December 31, 2014
	(in thousands)
Outstanding principal balance	$	2,837,256		3,070,268
Carrying amount:
Commercial, financial, leasing, etc.		207,884		247,820
Commercial real estate		869,700		961,828
Residential real estate		434,454		453,360
Consumer		888,985		933,537
	$	2,401,023		2,596,545

Purchased impaired loans included in the table above totaled $184 million at March 31, 2015 and $198 million at December 31, 2014, 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-month periods ended March 31, 2015 and 2014 follows:

	Three months ended March 31, 2015
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	76,518			397,379			473,897
Interest income		(5,206	)		(41,277	)		(46,483	)
Reclassifications from nonaccretable balance, net		110			183			293
Other (a)		—			1,610			1,610
Balance at end of period	$	71,422			357,895			429,317

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

	Three months ended March 31, 2014
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	37,230			538,633			575,863
Interest income		(6,328	)		(52,633	)		(58,961	)
Reclassifications from nonaccretable balance, net		37			—			37
Other (a)		—			(838	)		(838	)
Balance at end of period	$	30,939			485,162			516,101

(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 March 31, 2015 and December 31, 2014 were as 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)
March 31, 2015
Commercial, financial, leasing, etc.	$	19,519,566		43,213		4,265		3,323		9,724		195,403		19,775,494
Real estate:
Commercial		22,225,088		116,465		27,261		17,187		45,752		142,007		22,573,760
Residential builder and developer		1,460,981		6,119		—		6,953		91,839		65,310		1,631,202
Other commercial construction		3,575,578		18,244		3,864		1,721		17,061		24,280		3,640,748
Residential		7,580,514		189,901		197,299		20,058		17,283		171,496		8,176,551
Residential Alt-A		241,467		11,831		—		—		—		74,270		327,568
Consumer:
Home equity lines and loans		5,783,865		35,478		—		13,298		2,359		87,985		5,922,985
Automobile		2,024,526		25,322		—		—		—		14,100		2,063,948
Other		2,921,142		28,407		3,932		17,570		—		15,735		2,986,786
Total	$	65,332,727		474,980		236,621		80,110		184,018		790,586		67,099,042

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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, 2014
Commercial, financial, leasing, etc.	$	19,228,265		37,246		1,805		6,231		10,300		177,445		19,461,292
Real estate:
Commercial		22,208,491		118,704		22,170		14,662		51,312		141,600		22,556,939
Residential builder and developer		1,273,607		11,827		492		9,350		98,347		71,517		1,465,140
Other commercial construction		3,484,932		17,678		—		—		17,181		25,699		3,545,490
Residential		7,640,368		226,932		216,489		35,726		18,223		180,275		8,318,013
Residential Alt-A		249,810		11,774		—		—		—		77,704		339,288
Consumer:
Home equity lines and loans		5,859,378		42,945		—		27,896		2,374		89,291		6,021,884
Automobile		1,931,138		30,500		—		133		—		17,578		1,979,349
Other		2,909,791		33,295		4,064		16,369		—		18,042		2,981,561
Total	$	64,785,780		530,901		245,020		110,367		197,737		799,151		66,668,956

(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 held for sale were $423 million and $435 million at March 31, 2015 and December 31, 2014, respectively. Commercial mortgage loans held for sale were $117 million at March 31, 2015 and $308 million at December 31, 2014.

Changes in the allowance for credit losses for the three months ended March 31, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	288,038			307,927			61,910			186,033			75,654		919,562
Provision for credit losses		1,442			15,542			960			19,574			482		38,000
Net charge-offs
Charge-offs		(12,350	)		(6,679	)		(3,118	)		(25,329	)		—		(47,476	)
Recoveries		3,939			585			989			5,774			—		11,287
Net charge-offs		(8,411	)		(6,094	)		(2,129	)		(19,555	)		—		(36,189	)
Ending balance	$	281,069			317,375			60,741			186,052			76,136		921,373

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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 March 31, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				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		12,598			116			4,228			14,141			917		32,000
Net charge-offs
Charge-offs		(14,809	)		(3,486	)		(7,453	)		(21,691	)		—		(47,439	)
Recoveries		5,663			3,197			1,631			5,040			—		15,531
Net charge-offs		(9,146	)		(289	)		(5,822	)		(16,651	)		—		(31,908	)
Ending balance	$	276,835			324,805			77,062			162,134			75,932		916,768

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 loans 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 real estate 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

- 15 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

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 March 31, 2015 and December 31, 2014 and for the three month periods ended March 31, 2015 and 2014.

	March 31, 2015						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	108,870		130,029		19,335		132,340		165,146		31,779
Real estate:
Commercial		99,729		122,098		15,836		83,955		96,209		14,121
Residential builder and developer		6,512		8,731		591		17,632		22,044		805
Other commercial construction		5,116		6,084		831		5,480		6,484		900
Residential		86,691		104,630		4,405		88,970		107,343		4,296
Residential Alt-A		97,984		110,835		11,000		101,137		114,565		11,000
Consumer:
Home equity lines and loans		19,701		20,794		6,304		19,771		20,806		6,213
Automobile		27,122		27,122		6,983		30,317		30,317		8,070
Other		18,814		18,814		5,297		18,973		18,973		5,459
		470,539		549,137		70,582		498,575		581,887		82,643
With no related allowance recorded:
Commercial, financial, leasing, etc.		116,325		135,534		—		73,978		81,493		—
Real estate:
Commercial		51,734		59,235		—		66,777		78,943		—
Residential builder and developer		62,611		101,964		—		58,820		96,722		—
Other commercial construction		19,657		40,072		—		20,738		41,035		—
Residential		17,203		27,886		—		16,815		26,750		—
Residential Alt-A		24,785		43,635		—		26,752		46,964		—
		292,315		408,326		—		263,880		371,907		—
Total:
Commercial, financial, leasing, etc.		225,195		265,563		19,335		206,318		246,639		31,779
Real estate:
Commercial		151,463		181,333		15,836		150,732		175,152		14,121
Residential builder and developer		69,123		110,695		591		76,452		118,766		805
Other commercial construction		24,773		46,156		831		26,218		47,519		900
Residential		103,894		132,516		4,405		105,785		134,093		4,296
Residential Alt-A		122,769		154,470		11,000		127,889		161,529		11,000
Consumer:
Home equity lines and loans		19,701		20,794		6,304		19,771		20,806		6,213
Automobile		27,122		27,122		6,983		30,317		30,317		8,070
Other		18,814		18,814		5,297		18,973		18,973		5,459
Total	$	762,854		957,463		70,582		762,455		953,794		82,643

- 16 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

	Three months ended March 31, 2015						Three months ended March 31, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	214,618		604		604		134,306		548		548
Real estate:
Commercial		153,070		1,102		1,102		185,425		926		926
Residential builder and developer		73,151		63		63		101,253		74		74
Other commercial construction		25,540		55		55		87,292		1,087		1,087
Residential		104,490		1,446		910		174,168		1,400		902
Residential Alt-A		125,654		1,610		647		139,651		1,626		559
Consumer:
Home equity lines and loans		19,683		201		48		15,676		121		29
Automobile		29,013		450		54		39,383		625		87
Other		18,861		174		33		17,700		174		52
Total	$	764,080		5,705		3,516		894,854		6,581		4,264

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 loans 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 loans and commercial real estate loans.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
March 31, 2015
Pass	$	18,880,311		21,755,661		1,522,471		3,466,705
Criticized accrual		699,780		676,092		43,421		149,763
Criticized nonaccrual		195,403		142,007		65,310		24,280
Total	$	19,775,494		22,573,760		1,631,202		3,640,748
December 31, 2014
Pass	$	18,695,440		21,837,022		1,347,778		3,347,522
Criticized accrual		588,407		578,317		45,845		172,269
Criticized nonaccrual		177,445		141,600		71,517		25,699
Total	$	19,461,292		22,556,939		1,465,140		3,545,490

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 any first lien position prior to recovering amounts on a second lien position. 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 carrying value of residential real estate loans and home equity loans and lines of credit for which a partial charge-off has been recognized aggregated $62 million and $20 million, respectively, at March 31, 2015 and $63 million and $18 million, respectively, at December 31, 2014. Residential real estate loans and home equity loans and lines of credit that were more than 150 days past due but did not require a partial charge-off because the net realizable value of the collateral exceeded the outstanding customer balance totaled $24 million and $29 million, respectively, at March 31, 2015 and $27 million and $28 million, respectively, at December 31, 2014.

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

- 18 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

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, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2015
Individually evaluated for impairment	$	19,335		16,921		14,811		18,584	$	69,651
Collectively evaluated for impairment		258,028		299,262		43,547		166,296		767,133
Purchased impaired		3,706		1,192		2,383		1,172		8,453
Allocated	$	281,069		317,375		60,741		186,052		845,237
Unallocated										76,136
Total									$	921,373
December 31, 2014
Individually evaluated for impairment	$	31,779		15,490		14,703		19,742	$	81,714
Collectively evaluated for impairment		251,607		291,244		45,061		165,140		753,052
Purchased impaired		4,652		1,193		2,146		1,151		9,142
Allocated	$	288,038		307,927		61,910		186,033		843,908
Unallocated										75,654
Total									$	919,562

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

	Commercial, Financial, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2015
Individually evaluated for impairment	$	225,195		244,340		225,364		65,637	$	760,536
Collectively evaluated for impairment		19,540,575		27,446,718		8,261,472		10,905,723		66,154,488
Purchased impaired		9,724		154,652		17,283		2,359		184,018
Total	$	19,775,494		27,845,710		8,504,119		10,973,719	$	67,099,042
December 31, 2014
Individually evaluated for impairment	$	206,318		252,347		232,398		69,061	$	760,124
Collectively evaluated for impairment		19,244,674		27,148,382		8,406,680		10,911,359		65,711,095
Purchased impaired		10,300		166,840		18,223		2,374		197,737
Total	$	19,461,292		27,567,569		8,657,301		10,982,794	$	66,668,956

- 19 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

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 March 31, 2015 and 2014:

			Recorded investment				Financial effects of modification
Three months ended March 31, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
			(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		21	$	1,572	$	1,557	$	(15	)	$	—
Interest rate reduction		1		99		99		—			(19	)
Combination of concession types		3		9,155		6,989		(2,166	)		—
Real estate:
Commercial
Principal deferral		7		3,792		3,776		(16	)		—
Combination of concession types		4		1,646		1,637		(9	)		(52	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Residential
Principal deferral		7		721		742		21			—
Combination of concession types		3		294		349		55			(34	)
Residential Alt-A
Combination of concession types		1		210		210		—			(4	)
Consumer:
Home equity lines and loans
Principal deferral		1		21		21		—			—
Combination of concession types		5		196		196		—			(13	)
Automobile
Principal deferral		35		303		303		—			—
Interest rate reduction		3		42		42		—			(3	)
Other		10		20		20		—			—
Combination of concession types		8		84		84		—			(7	)
Other
Principal deferral		22		296		296		—			—
Other		5		59		59		—			—
Combination of concession types		13		224		224		—			(25	)
Total		150	$	20,132	$	18,002	$	(2,130	)	$	(157	)

(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.

- 20 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

Three months ended March 31, 2014	Number		Recorded investment				Financial effects of modification
			Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		30	$	14,954	$	14,848	$	(106	)	$	—
Combination of concession types		2		41		39		(2	)		(4	)
Real estate:
Commercial
Principal deferral		13		7,044		7,002		(42	)		—
Combination of concession types		1		346		401		55			(104	)
Other commercial construction
Principal deferral		1		151		151		—			—
Residential
Principal deferral		13		1,602		1,663		61			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		14		2,188		2,160		(28	)		(282	)
Residential Alt-A
Principal deferral		2		166		202		36			—
Combination of concession types		10		1,746		1,736		(10	)		(61	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Combination of concession types		15		1,856		1,856		—			(172	)
Automobile
Principal deferral		80		993		993		—			—
Other		11		61		61		—			—
Combination of concession types		23		250		250		—			(26	)
Other
Principal deferral		8		55		55		—			—
Other		1		45		45		—			—
Combination of concession types		14		466		466		—			(188	)
Total		243	$	32,530	$	32,500	$	(30	)	$	(869	)

(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 March 31, 2015 and 2014 and for which there was a subsequent payment default during the three-month periods ended March 31, 2015 and 2014, respectively, were not material.

Effective January 1, 2015, the Company adopted 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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

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 adoption resulted in an insignificant increase in other real estate owned. The amount of foreclosed residential real estate property held by the Company was $42 million and $44 million at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015, there were $158 million in loans secured by residential real estate that were in the process of foreclosure.

5. Borrowings

During February 2015, M&T Bank issued $1.5 billion of fixed rate senior notes pursuant to a Bank Note Program, of which $750 million have a 2.10% interest rate and mature in 2020 and $750 million have a 2.90% interest rate and mature in 2025.

M&T had $836 million of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at March 31, 2015 that are held by various trusts and 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.

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 April 15, 2015, M&T redeemed all of the issued and outstanding Capital Securities issued by M&T Capital Trust I, M&T Capital Trust II and M&T Capital Trust III, and the related Junior Subordinated Debentures held by those respective trusts. In the aggregate, $323 million of Junior Subordinated Debentures were redeemed. In February 2014, M&T redeemed all of the issued and outstanding 8.5% $350 million Capital Securities issued by M&T Capital Trust IV and the related Junior Subordinated Debentures held by M&T Capital Trust IV.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

5. Borrowings, continued

Also included in long-term borrowings are agreements to repurchase securities of $1.4 billion at each of March 31, 2015 and December 31, 2014. The agreements reflect various repurchase dates in 2016 and 2017 and 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 consisting primarily of government guaranteed mortgage-backed securities of $1.5 billion at each of March 31, 2015 and December 31, 2014.

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 as of March 31, 2015 and December 31, 2014 is presented below:

	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
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		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
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, are paid at 6.375%. Warrants to purchase M&T common stock at $73.86 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 719,175 at March 31, 2015 and 721,490 at December 31, 2014.

(b) Dividends, if declared, are 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 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

6. Shareholders’ equity, continued

(c) Dividends, if declared, are 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 (“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 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A 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 March 31, 2015 and December 31, 2014. 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 benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended March 31
	2015			2014			2015			2014
	(in thousands)
Service cost	$	6,000			5,100			200			150
Interest cost on projected benefit obligation		17,775			17,250			650			675
Expected return on plan assets		(23,575	)		(22,925	)		—			—
Amortization of prior service credit		(1,525	)		(1,650	)		(350	)		(350	)
Amortization of net actuarial loss		11,175			3,350			25			—
Net periodic benefit cost	$	9,850			1,125			525			475

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $16,750,000 and $15,732,000 for the three months ended March 31, 2015 and 2014, respectively.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended March 31
	2015			2014
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	241,613			229,017
Less: Preferred stock dividends (a)		(20,318	)		(14,674	)
Net income available to common equity		221,295			214,343
Less: Income attributable to unvested stock-based compensation awards		(2,465	)		(2,623	)
Net income available to common shareholders	$	218,830			211,720
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		133,542			131,800
Less: Unvested stock-based compensation awards		(1,493	)		(1,588	)
Weighted-average shares outstanding		132,049			130,212
Basic earnings per common share	$	1.66			1.63

(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 March 31
	2015			2014
	(in thousands, except per share)
Net income available to common equity	$	221,295			214,343
Less: Income attributable to unvested stock-based compensation awards		(2,458	)		(2,612	)
Net income available to common shareholders	$	218,837			211,731
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		133,542			131,800
Less: Unvested stock-based compensation awards		(1,493	)		(1,588	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards		720			914
Adjusted weighted-average shares outstanding		132,769			131,126
Diluted earnings per common share	$	1.65			1.61

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 2.7 million and 3.0 million common shares during the three-month periods ended March 31, 2015 and 2014, 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
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2015	$	7,438		201,828		(503,027	)		(4,082	)	$	(297,843	)		116,849		$	(180,994	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		8,011		32,063		—			—			40,074			(15,247	)		24,827
Foreign currency translation adjustment		—		—		—			(3,732	)		(3,732	)		1,348			(2,384	)
Gains on cash flow hedges		—		—		—			1,453			1,453			(568	)		885
Total other comprehensive income before reclassifications		8,011		32,063		—			(2,279	)		37,795			(14,467	)		23,328
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		—		739		—			—			739	(b)		(289	)		450
Losses realized in net income		—		98		—			—			98	(c)		(36	)		62
Accretion of gain on terminated cash flow hedges		—		—		—			(24	)		(24	) (d)		10			(14	)
Amortization of prior service credit		—		—		(1,875	)		—			(1,875	) (e)		934			(941	)
Amortization of actuarial losses		—		—		11,200			—			11,200	(e)		(5,582	)		5,618
Total reclassifications		—		837		9,325			(24	)		10,138			(4,963	)		5,175
Total gain (loss) during the period		8,011		32,900		9,325			(2,303	)		47,933			(19,430	)		28,503
Balance – March 31, 2015	$	15,449		234,728		(493,702	)		(6,385	)	$	(249,910	)		97,419		$	(152,491	)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income, continued

	Investment Securities
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(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		19,968		42,119		—			—			62,087			(24,374	)		37,713
Foreign currency translation adjustment		—		—		—			(234	)		(234	)		98			(136	)
Total other comprehensive income before reclassifications		19,968		42,119		—			(234	)		61,853			(24,276	)		37,577
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		2		823		—			—			825	(b)		(324	)		501
Amortization of prior service credit		—		—		(2,000	)		—			(2,000	) (e)		785			(1,215	)
Amortization of actuarial losses		—		—		3,350			—			3,350	(e)		(1,315	)		2,035
Total reclassifications		2		823		1,350			—			2,175			(854	)		1,321
Total gain (loss) during the period		19,970		42,942		1,350			(234	)		64,028			(25,130	)		38,898
Balance – March 31, 2014	$	57,225		61,392		(160,267	)		(119	)	$	(41,769	)		16,508		$	(25,261	)

(a) Other-than-temporary impairment

(b) Included in interest income

(c) Included in loss on bank investment securities

(d) Included in interest expense

(e) Included in salaries and employee benefits

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

	Investment securities				Defined benefit
	With OTTI		All other		plans			Other			Total
	(in thousands)
Balance – December 31, 2014	$	4,518		122,683		(305,589	)		(2,606	)	$	(180,994	)
Net gain (loss) during period		4,898		20,441		4,677			(1,513	)		28,503
Balance – March 31, 2015	$	9,416		143,124		(300,912	)		(4,119	)	$	(152,491	)

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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 was not significant as of March 31, 2015.

The net effect of interest rate swap agreements was to increase net interest income by $11 million for each of the three-month periods ended March 31, 2015 and 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)
March 31, 2015
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.4		4.42	%		1.22	%
December 31, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.7		4.42	%		1.19	%

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

The use of cash flow hedges to manage the variability of cash flows associated with the then-forecasted issuance of long-term debt did not have a significant impact on the Company’s consolidated financial position or results of operations.

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 account 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 account purposes had notional values of $17.1 billion and $17.6 billion at March 31, 2015 and December 31, 2014, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes aggregated $1.4 billion and $1.3 billion at March 31, 2015 and December 31, 2014, respectively.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

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
	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	72,855		73,251	$	—		—
Commitments to sell real estate loans (a)		662		728		3,529		4,217
		73,517		73,979		3,529		4,217
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		26,295		17,396		65		49
Commitments to sell real estate loans (a)		1,571		754		8,552		4,330
Trading:
Interest rate contracts (b)		246,819		215,614		204,484		173,513
Foreign exchange and other option and futures contracts (b)		37,957		31,112		35,684		29,950
		312,642		264,876		248,785		207,842
Total derivatives	$	386,159		338,855	$	252,314		212,059

(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 March 31, 2015					Three months ended March 31, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(396	)		161	$	(8,160	)		7,920
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	660				$	(302	)
Foreign exchange and other option and futures contracts (b)		(167	)				(5,030	)
Total	$	493				$	(5,332	)

(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 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 at $31 million and $28 million March 31, 2015 and December 31, 2014, 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 $174 million and $161 million at March 31, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net liability positions with counterparties aggregated $114 million and $103 million at March 31, 2015 and December 31, 2014, respectively. The Company was required to post collateral relating to those positions of $102 million and $90 million, at March 31, 2015 and December 31, 2014, 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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

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 March 31, 2015 was $22 million, for which the Company had posted collateral of $15 million in the normal course of business. If the credit risk-related contingent features had been triggered on March 31, 2015, the maximum amount of additional collateral the Company would have been required to post with counterparties was $7 million.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $106 million and $104 million at March 31, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net asset positions with counterparties aggregated $46 million at each of March 31, 2015 and December 31, 2014. Counterparties posted collateral relating to those positions of $47 million and $46 million at March 31, 2015 and December 31, 2014, 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.

In addition to the derivative contracts noted above, the Company clears certain derivative transactions through a clearinghouse rather than directly with counterparties. Those transactions cleared through a clearinghouse require initial margin collateral and additional collateral for contracts in a net liability position. The net fair values of derivative instruments cleared through clearinghouses at March 31, 2015 was a net liability position of $65 million and at December 31, 2014 was a net liability position of $35 million. Collateral posted with clearinghouses was $97 million and $61 million at March 31, 2015 and December 31, 2014, respectively.

11. Variable interest entities and asset securitizations

During the first quarter of 2015, the Company securitized approximately $13 million of one-to-four family residential real estate loans that had been originated for sale in guaranteed mortgage securitizations with the Government National Mortgage Association (“Ginnie Mae”) and retained the resulting securities in its investment securities portfolio. In similar transactions for the three months ended March 31, 2014, the Company securitized $29 million of one-to-four family residential real estate loans. Gains associated with those transactions were not significant.

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 March 31, 2015 and December 31, 2014, the carrying values of the loans in the securitization trust were $93 million and $98 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 March 31, 2015 and December 31, 2014 was $14 million and $15 million, respectively. Because the transaction was non-recourse, the Company’s maximum exposure to loss as a result of its association with the trust at March 31, 2015 is limited to realizing the carrying value of the loans less the amount of the mortgage-backed securities held by third parties.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

11. Variable interest entities and asset securitizations, continued

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 March 31, 2015 and December 31, 2014, 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 Capital Securities described in note 5.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.2 billion at March 31, 2015 and December 31, 2014. 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 on its investments in such partnerships was $303 million, including $88 million of unfunded commitments, at March 31, 2015 and $243 million, including $56 million of unfunded commitments, at December 31, 2014. Contingent commitments to provide additional capital contributions to these partnerships were not material at March 31, 2015. 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 a 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. As described in note 1, effective January 1, 2015 the Company retrospectively adopted for all periods presented amended accounting guidance on the accounting for investments in qualified affordable housing projects whereby the Company’s investment cost is amortized to income taxes in the consolidated statement of income as tax credits and other tax benefits resulting from deductible losses associated with the projects are received. The Company amortized $10 million and $12 million of its investments in qualified affordable housing projects to income tax expense during the three-month periods ended March 31, 2015 and 2014, respectively, and recognized $14 million and $17 million of tax credits and other tax benefits during those respective periods.

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 March 31, 2015.

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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

• 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 with 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.

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 March 31, 2015 and December 31, 2014. 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 5% to 10%, 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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

significant unobservable inputs to Level 3 measurements. At March 31, 2015, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities were $30 million and $47 million, respectively, and at December 31, 2014 were $30 million and $50 million, respectively. Securities backed by trust preferred securities issued by financial institutions and other entities constituted substantially 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 Level 3 fair value measurements. Internal pricing models used for significant valuation measurements have generally been subjected to validation procedures including review of mathematical constructs, 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 held 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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The following tables present assets and liabilities at March 31, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at March 31, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	363,085		48,978		314,107		—
Investment securities available for sale:
U.S. Treasury and federal agencies		163,234		—		163,234		—
Obligations of states and political subdivisions		7,850		—		7,850		—
Mortgage-backed securities:
Government issued or guaranteed		10,265,221		—		10,265,221		—
Privately issued		95		—		—		95
Collateralized debt obligations		47,278		—		—		47,278
Other debt securities		121,273		—		121,273		—
Equity securities		98,549		71,804		26,745		—
		10,703,500		71,804		10,584,323		47,373
Real estate loans held for sale		540,546		—		540,546		—
Other assets (b)		101,383		—		75,088		26,295
Total assets	$	11,708,514		120,782		11,514,064		73,668
Trading account liabilities	$	240,168		—		240,168		—
Other liabilities (b)		12,146		—		12,081		65
Total liabilities	$	252,314		—		252,249		65

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2015 and the year ended December 31, 2014.

(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 March 31, 2015 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			29,770	(a)
Included in other comprehensive income		—			(2,004	) (d)		—
Settlements		(8	)		(1,034	)		—
Transfers in and/or out of Level 3 (b)		—			—			(20,887	) (c)
Balance – March 31, 2015	$	95		$	47,278		$	26,230
Changes in unrealized gains included in earnings related to assets still held at March 31, 2015	$	—		$	—		$	22,636	(a)

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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 March 31, 2014 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			22,383	(a)
Included in other comprehensive income		67	(d)		4,646	(d)		—
Settlements		(1,221	)		(5,961	)		—
Transfers in and/or out of Level 3 (b)		—			—			(13,735	) (c)
Balance – March 31, 2014	$	696		$	61,768		$	12,589
Changes in unrealized gains included in earnings related to assets still held at March 31, 2014	$	—		$	—		$	15,050	(a)

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

(b) 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.

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

(d) Reported as net unrealized gains 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 10% to 80% at March 31, 2015. 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 $101 million at March 31, 2015 ($67 million and $34 million of which were classified as Level 2 and Level 3, respectively), $173 million at December 31, 2014 ($94 million and $79 million of which were classified as Level 2 and Level 3, respectively) and $161 million at March 31, 2014 ($100 million and $61 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 March 31, 2015 and 2014 were decreases of $8 million and $15 million for the three-month periods ended March 31, 2015 and 2014, 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 subject to nonrecurring fair value measurement were $11 million at each of March 31, 2015 and March 31, 2014. Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month periods ended March 31, 2015 and 2014.

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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 March 31, 2015 and December 31, 2014:

	Fair value at March 31, 2015		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	95	Two independent pricing quotes		—	—
Collateralized debt obligations		47,278	Discounted cash flow		Probability of default	12%-57% (45%)
					Loss severity	100%
Net other assets (liabilities) (a)		26,230	Discounted cash flow		Commitment expirations	0%-96% (19%)
	Fair value at December 31, 2014		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103	Two independent pricing quotes		—	—
Collateralized debt obligations		50,316	Discounted cash flow		Probability of default	12%-57% (36%)
					Loss severity	100%
Net other assets (liabilities) (a)		17,347	Discounted cash flow		Commitment expirations	0%-96% (17%)

(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 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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

Disclosures of fair value of financial instruments

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

	March 31, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,366,853		$	1,366,853		$	1,311,917	$	54,936		$	—
Interest-bearing deposits at banks		6,291,491			6,291,491			—		6,291,491			—
Trading account assets		363,085			363,085			48,978		314,107			—
Investment securities		14,393,270			14,444,292			71,804		14,162,805			209,683
Loans and leases:
Commercial loans and leases		19,775,494			19,484,920			—		—			19,484,920
Commercial real estate loans		27,845,710			27,746,166			—		117,366			27,628,800
Residential real estate loans		8,504,119			8,609,248			—		5,119,739			3,489,509
Consumer loans		10,973,719			10,880,895			—		—			10,880,895
Allowance for credit losses		(921,373	)		—			—		—			—
Loans and leases, net		66,177,669			66,721,229			—		5,237,105			61,484,124
Accrued interest receivable		244,079			244,079			—		244,079			—
Financial liabilities:
Noninterest-bearing deposits	$	(27,181,120	)	$	(27,181,120	)	$	—	$	(27,181,120	)	$	—
Savings deposits and NOW accounts		(43,288,329	)		(43,288,329	)		—		(43,288,329	)		—
Time deposits		(2,946,126	)		(2,967,329	)		—		(2,967,329	)		—
Deposits at Cayman Islands office		(178,545	)		(178,545	)		—		(178,545	)		—
Short-term borrowings		(193,495	)		(193,495	)		—		(193,495	)		—
Long-term borrowings		(10,509,143	)		(10,641,367	)		—		(10,641,367	)		—
Accrued interest payable		(77,903	)		(77,903	)		—		(77,903	)		—
Trading account liabilities		(240,168	)		(240,168	)		—		(240,168	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	26,230		$	26,230		$	—	$	—		$	26,230
Commitments to sell real estate loans		(9,848	)		(9,848	)		—		(9,848	)		—
Other credit-related commitments		(112,511	)		(112,511	)		—		—			(112,511	)
Interest rate swap agreements used for interest rate risk management		72,855			72,855			—		72,855			—

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management		73,251			73,251			—		73,251			—

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential real estate 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. The following assumptions and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated financial statements.

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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

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.

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.

	March 31, 2015		December 31, 2014
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,219,783		6,194,516
Commercial real estate loans to be sold		346,664		212,257
Other commercial real estate and construction		5,161,878		4,834,699
Residential real estate loans to be sold		661,132		432,352
Other residential real estate		581,384		524,399
Commercial and other		11,493,613		11,080,856
Standby letters of credit		3,648,095		3,706,888
Commercial letters of credit		42,291		46,965
Financial guarantees and indemnification contracts		2,535,609		2,490,050
Commitments to sell real estate loans		1,322,998		1,237,294

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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

13. Commitments and contingencies, continued

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 $2.4 billion at each of March 31, 2015 and December 31, 2014.

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 market value.

The Company also has commitments under long-term operating leases.

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 March 31, 2015, 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 further losses 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, 2014. 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. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. Effective January 1, 2015, the Company made certain changes to its methodology for measuring segment profit and loss. Those changes in the measurement of segment profitability were largely the result of updated funds transfer pricing and various cost allocation reviews. The most significant changes to the funds transfer pricing resulted from ascribing a longer duration to non-maturity deposits, which significantly benefitted the Retail Banking segment. The cost allocation review having the largest impact related to a branch cost study. That study consisted of transaction reviews and time studies which resulted in a higher cost allocation from the Retail Banking segment to the Business Banking segment. As a result of the changes, prior period financial information has been restated to provide segment information on a comparable basis, as noted below:

	Three months ended March 31, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	28,598			(3,625	)		24,973
Commercial Banking		99,765			(924	)		98,841
Commercial Real Estate		74,561			(2,009	)		72,552
Discretionary Portfolio		11,279			81			11,360
Residential Mortgage Banking		19,411			(831	)		18,580
Retail Banking		29,711			39,323			69,034
All Other		(34,308	)		(32,015	)		(66,323	)
Total	$	229,017			—			229,017

As also described in note 22 to the Company’s 2014 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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

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

	Three months ended March 31
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	108,560		1,045			24,811		$	111,770		1,057			24,973
Commercial Banking		246,581		1,085			96,423			249,349		1,197			98,841
Commercial Real Estate		163,320		82			80,086			157,323		348			72,552
Discretionary Portfolio		15,474		(5,443	)		5,954			24,657		(5,039	)		11,360
Residential Mortgage Banking		111,458		11,387			31,965			93,765		9,748			18,580
Retail Banking		300,391		3,137			68,888			306,780		3,505			69,034
All Other		154,007		(11,293	)		(66,514	)		132,896		(10,816	)		(66,323	)
Total	$	1,099,791		—			241,613		$	1,076,540		—			229,017

	Average total assets
	Three months ended March 31				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,300		5,242		5,281
Commercial Banking		23,683		22,523		22,892
Commercial Real Estate		18,019		16,937		17,113
Discretionary Portfolio		22,714		18,581		20,798
Residential Mortgage Banking		3,512		3,157		3,333
Retail Banking		10,788		10,155		10,449
All Other		11,876		10,070		12,277
Total	$	95,892		86,665		92,143

(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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

(e.g. deposits). The taxable-equivalent adjustment aggregated $5,838,000 and $5,945,000 for the three-month periods ended March 31, 2015 and 2014, 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.

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 $43 million at March 31, 2015.

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 $4.6 billion and $4.8 billion at March 31, 2015 and December 31, 2014, respectively. Revenues from those servicing rights were $6 million and $7 million during the three-month periods ended March 31, 2015 and 2014, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances totaling $39.5 billion and $41.3 billion at March 31, 2015 and December 31, 2014, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $35 million and $26 million for the three-month periods ended March 31, 2015 and 2014, respectively. In addition, the Company held $198 million and $202 million of mortgage-backed securities in its held-to-maturity portfolio at March 31, 2015 and December 31, 2014, 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

M&T Bank Corporation (“M&T”) recorded net income in the first quarter of 2015 of $242 million or $1.65 of diluted earnings per common share, compared with $229 million or $1.61 of diluted earnings per common share in the initial 2014 quarter. During the fourth quarter of 2014, net income totaled $278 million or $1.92 of diluted earnings per common share. Basic earnings per common share were $1.66 in the recent quarter, compared with $1.63 and $1.93 in the first and fourth quarters of 2014, respectively. The annualized rate of return on average total assets for M&T and its consolidated subsidiaries (“the Company”) in the initial 2015 quarter was 1.02%, compared with 1.07% in the year-earlier quarter and 1.12% in the fourth quarter of 2014. The annualized rate of return on average common shareholders’ equity was 7.99% in the first three months of 2015, compared with 8.22% and 9.10% in the first and fourth quarters of 2014, respectively.

On March 12, 2015, M&T announced that the Federal Reserve did not object to M&T’s proposed 2015 Capital Plan. Accordingly, M&T may maintain a quarterly common stock dividend of $.70 per share; pay dividends and interest on other equity and debt instruments included in regulatory capital, including preferred stock, trust preferred securities and subordinated debt that were outstanding at December 31, 2014, consistent with the contractual terms of those instruments; repurchase up to $200 million of common shares during the first half of 2016; and redeem or repurchase up to $310 million of trust preferred securities. Common and preferred dividends are subject to approval by M&T’s Board of Directors in the ordinary course of business. On April 15, 2015, M&T redeemed $310 million of trust preferred securities in accordance with the 2015 Capital Plan.

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 $127.00 on March 31, 2015 was $5.5 billion.

At March 31, 2015, Hudson City reported $36.1 billion of assets, including $20.9 billion of loans (predominantly residential real estate loans) and $8.3 billion of investment securities, and $31.3 billion of liabilities, including $18.9 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 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. On April 3, 2015, M&T was advised by the Federal Reserve that the Federal Reserve Board intends to act on the M&T and Hudson City merger application no later than September 30, 2015. As a result, M&T and Hudson City extended the date after

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which either party may elect to terminate the merger agreement if the merger has not yet been completed from April 30, 2015 to October 31, 2015. Nevertheless, M&T’s pending acquisition of Hudson City still 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.

Effective January 1, 2015, the Company elected to account for its investments in qualified affordable housing projects using the proportional amortization method as allowed by the Financial Accounting Standards Board (“FASB”). 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 adoption is required to be applied retrospectively. As a result, financial statements for periods prior to 2015 have been restated. The adoption did not have a significant effect on the Company’s financial position or results of operations, but the restatement of the consolidated statement of income for the three-month period ended March 31, 2014 resulted in the removal of $12 million of losses associated with qualified affordable housing projects from “other costs of operations” and added the amortization of the initial cost of the investment of a similar amount to income tax expense. The similar restatement for the second, third and fourth quarters of 2014 each reflected approximately $14 million of amortization.

Recent Legislative Developments

As discussed in M&T’s Form 10-K for the year ended December 31, 2014, 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. Not all of the rules required or expected to be implemented under the Dodd-Frank Act have been proposed or adopted, and certain of the rules that have been proposed or adopted under the Dodd-Frank Act are subject to phase-in or transitional periods. The implications of the Dodd-Frank Act for the Company’s businesses continue to depend to a large extent on the implementation of the legislation by the Federal Reserve and other agencies.

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, 2014.

In July 2013, the Federal Reserve, 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. These rules went into effect as to M&T on January 1, 2015. The New Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework for strengthening international capital standards (referred to as “Basel III”) and are intended to ensure that banking organizations have adequate capital levels given the risk levels of assets and off-balance sheet obligations. 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 U.S. general risk-based capital rules that were applicable to M&T and M&T Bank through December 31, 2014.

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The New Capital Rules also 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 are 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. On April 15, 2015, in accordance with its 2015 Capital Plan M&T redeemed the junior subordinated debentures associated with $310 million of trust preferred securities of M&T Capital Trust I, II and III. A detailed discussion of the New Capital Rules is included in Part I, Item 1 of the Company’s Form 10-K for the year ended December 31, 2014 under the heading “Capital Requirements.” A further discussion of the Company’s regulatory capital ratios is presented herein under the heading “Capital.”

On December 10, 2013, the Federal Reserve, 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 the Dodd-Frank Act. Pursuant to the Volcker Rule, banking entities are generally prohibited from engaging in proprietary trading. Under the rule, the Company was required to be in compliance with the prohibition on proprietary trading and the requirement to develop an extensive compliance program by July 2015; however, in December 2014, the Federal Reserve extended the compliance period to July 2016 for investments in and relationships with covered funds that were in place prior to December 31, 2013. The Federal Reserve has indicated that it intends to further extend the compliance period to July 2017.

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 material effect on the Company’s financial condition or its results of operations. Nevertheless, the Company may be required to divest certain investments subject to the Volcker Rule.

On September 3, 2014, the Federal Reserve and other banking regulators adopted final rules (“Final LCR Rule”) implementing a U.S. version of the Basel Committee’s Liquidity Coverage Ratio requirement (“LCR”) including the modified version applicable to bank holding companies, such as M&T, with $50 billion in total consolidated assets that are not “advanced approaches” institutions. The LCR is intended to ensure that banks hold a sufficient amount of so-called “high quality liquid assets” (“HQLA”) to cover the anticipated net cash outflows during a hypothetical acute 30-day stress scenario. The LCR is the ratio of an institution’s amount of HQLA (the numerator) over projected net cash outflows over the 30-day horizon (the denominator), in each case, as calculated pursuant to the Final LCR Rule. Once fully phased-in, a subject institution must maintain an LCR equal to at least 100% in order to satisfy this regulatory requirement. Only specific classes of assets, including U.S. Treasury securities, other U.S. government obligations and agency mortgage-backed securities, qualify under the rule as HQLA, with classes of assets deemed relatively less liquid and/or subject to greater degree of credit risk subject to certain haircuts and caps for purposes of calculating the numerator under the Final LCR Rule.

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The initial compliance date for the modified LCR is January 2016, with the requirement fully phased-in by January 2017. The Company intends to comply with the LCR when it becomes effective. A detailed discussion of the LCR and its requirements is included in Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2014 under the heading “Liquidity Ratios under Basel III.”

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 March 31, 2015, March 31, 2014 and December 31, 2014. 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 $4 million during each of the quarters ended March 31, 2015 and December 31, 2014 ($.03 per diluted common share), compared with $6 million ($.05 per diluted common share) during the first quarter of 2014. There were no merger-related gains or expenses in the first quarters of 2015 and 2014 or in the final quarter of 2014. 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 aggregated $246 million in the initial quarter of 2015, compared with $235 million in the first quarter of 2014. Diluted net operating earnings per common share for the recent quarter were $1.68, compared with $1.66 in the year-earlier quarter. Net operating income and diluted net operating earnings per common share were $282 million and $1.95, respectively, in the final 2014 quarter.

Net operating income in the first quarter of 2015 expressed as an annualized rate of return on average tangible assets was 1.08%, compared with 1.15% and 1.18% in the first and fourth quarters of 2014, respectively. Net operating income represented an annualized return on average tangible common equity of 11.90% in the recent quarter, compared with 12.76% in the year-earlier quarter and 13.55% in the fourth quarter of 2014.

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

Taxable-equivalent Net Interest Income

Taxable-equivalent net interest income was $665 million in the first quarter of 2015, up from $662 million in the year-earlier period. The impact of higher average earning assets, which rose $8.9 billion, or 12%, to $85.2 billion from $76.3 billion in the first quarter of 2014, was largely offset by a 35 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. The higher level of average earning assets reflected a $4.1 billion rise in average balances of investment securities, a $2.8 billion increase in average loans and leases and a $2.0 billion increase in lower-yielding average interest-bearing deposits at the Federal Reserve Bank of New York. The increase in investment securities resulted from purchases of Ginnie Mae and Fannie Mae mortgage-

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backed securities. Taxable-equivalent net interest income in the recent quarter was below the $688 million recorded in the fourth quarter of 2014, reflecting two less days in the recent quarter, lower average balances of interest-bearing deposits at banks and the net impact of actions taken in response to liquidity requirements that take effect in 2016.

Average loans and leases rose $2.8 billion or 4% to $66.6 billion in the initial 2015 quarter from $63.8 billion in the first quarter of 2014. Commercial loans and leases averaged $19.5 billion in the recent quarter, up $1.0 billion or 5% from $18.5 billion in the year-earlier quarter. Average commercial real estate loans rose $1.5 billion or 6% to $27.6 billion in the first quarter of 2015 from $26.1 billion in the corresponding quarter of 2014. Average residential real estate loans outstanding decreased $272 million to $8.6 billion in the first quarter of 2015 from $8.8 billion in the similar 2014 quarter. Included in that portfolio were loans held for sale, which averaged $387 million in the recent quarter, compared with $329 million in the year-earlier quarter. Average consumer loans and leases totaled $11.0 billion in the initial quarter of 2015, $662 million or 6% higher than $10.3 billion in the first quarter of 2014. The predominant factor for the higher consumer loans was a 41% increase in average automobile loans that is reflective of consumer demand, higher industry sales and generally favorable interest rates.

Average loan balances in the first quarter of 2015 increased $820 million from the fourth quarter of 2014. Average outstanding commercial loan and lease balances rose $340 million, or 2%, average balances of commercial real estate loans increased $532 million, or 2%, average residential real estate loan balances were down $82 million and average outstanding consumer loans increased $29 million from the final 2014 quarter. 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
	1st Qtr. 2015		1st Qtr. 2014			4th Qtr. 2014
Commercial, financial, etc.	$	19,457		5	%		2	%
Real estate – commercial		27,596		6			2
Real estate – consumer		8,572		(3	)		(1	)
Consumer
Automobile		2,024		41			5
Home equity lines		5,704		(1	)		(1	)
Home equity loans		264		(23	)		(7	)
Other		2,970		7			—
Total consumer		10,962		6			—
Total	$	66,587		4	%		1	%

The investment securities portfolio averaged $13.4 billion in the recent quarter, up $4.1 billion or 44% from $9.3 billion in the initial quarter of 2014 and $397 million above the $13.0 billion averaged in the fourth quarter of 2014. The increase from the year-earlier quarter reflects the net effect of purchases, partially offset by maturities and paydowns of mortgage-backed securities. The Company purchased approximately $4.6 billion of Fannie Mae securities and $602 million of Ginnie Mae securities that were added to the investment securities portfolio during 2014, and another $1.4 billion of Fannie Mae securities and $470 million of Ginnie Mae securities were purchased during the first quarter of 2015. Those purchases reflect increased holdings of investment securities to satisfy the requirements of the LCR that will become effective in January 2016.

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

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U.S. Treasury and federal agency notes. When purchasing investment securities, the Company also considers its overall interest-rate risk profile as well as the adequacy of expected returns relative to 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.” There were no other-than-temporary impairment charges recognized in either of the first quarters of 2015 and 2014 or in the final 2014 quarter. Additional information about the investment securities portfolio is included in notes 3 and 12 of Notes to Financial Statements.

Other earning assets include interest-bearing 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 $5.2 billion in the recently completed quarter, compared with $3.3 billion and $9.2 billion in the first and fourth quarters of 2014, respectively. Interest-bearing deposits at banks averaged $5.1 billion, $3.1 billion and $9.1 billion during the three-month periods ended March 31, 2015, March 31, 2014 and December 31, 2014, respectively. The rise in average interest-bearing deposits at banks in the fourth quarter of 2014 and in the initial 2015 quarter as compared with the first quarter of 2014 was due, in part, to higher Wilmington Trust-related customer deposits. 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, and management of liquidity and balance sheet size and resulting capital ratios.

As a result of the changes described herein, average earning assets totaled $85.2 billion in the first quarter of 2015, compared with $76.3 billion in the year-earlier quarter and $88.0 billion in the fourth quarter of 2014.

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. Average core deposits totaled $70.1 billion in the first quarter of 2015, compared with $65.6 billion in the year-earlier quarter and $73.8 billion in the fourth quarter of 2014. The growth in core deposits since the first quarter of 2014 was due, in part, to higher deposits of trust customers and 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 decline in average core deposits as compared with the fourth quarter of 2014 reflects lower deposits of trust customers. 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 provides an analysis of quarterly changes in the components of average core deposits.

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AVERAGE CORE DEPOSITS

Dollars in millions

			Percent increase (decrease) from
	1st Qtr. 2015		1st Qtr. 2014			4th Qtr. 2014
NOW accounts	$	1,101		14	%		4	%
Savings deposits		40,561		8			(3	)
Time deposits $250,000 or less		2,670		(13	)		(4	)
Noninterest-bearing deposits		25,811		7			(8	)
Total	$	70,143		7	%		(5	)%

The Company has additional funding sources, including branch-related time deposits over $250,000, deposits associated with the Company’s Cayman Islands office, and brokered deposits. Time deposits over $250,000 averaged $347 million in the recent quarter, compared with $371 million and $354 million in the first and fourth quarters of 2014, respectively. Cayman Islands office deposits averaged $224 million, $380 million and $265 million for the three-month periods ended March 31, 2015, March 31, 2014 and December 31, 2014, respectively. The Company had brokered NOW and brokered money-market deposit accounts, which in the aggregate averaged approximately $1.0 billion in each of the first quarters of 2015 and 2014 and $1.1 billion in the fourth quarter of 2014. 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 are also reflective of customer demand. Additional amounts of Cayman Islands office deposits or brokered 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 $196 million in the first quarter of 2015, compared with $264 million in the year-earlier quarter and $195 million in the final quarter of 2014. Such borrowings were largely comprised of unsecured federal funds borrowings, which generally mature on the next business day.

Long-term borrowings averaged $9.8 billion in the recent quarter, compared with $5.9 billion in the year-earlier quarter and $9.0 billion in the fourth quarter of 2014. During 2013, M&T Bank initiated a Bank Note Program whereby M&T Bank may offer unsecured senior and subordinated notes. Average balances of the unsecured senior notes issued under that program were $4.9 billion, $1.8 billion and $4.0 billion during the three-month periods ended March 31, 2015, March 31, 2014 and December 31, 2014, respectively. During February 2015, M&T Bank issued $1.5 billion of senior notes of which $750 million mature in 2020 and $750 million mature in 2025. The proceeds of the issuances of borrowings under the Bank Note Program have been predominantly utilized to purchase high-quality liquid assets that will meet the requirements of the LCR. Also included in average long-term borrowings were amounts borrowed from the Federal Home Loan Banks of New York, Atlanta and Pittsburgh of $1.2 billion in each of the initial 2015 quarter and fourth quarter of 2014 and $29 million in the first quarter of 2014. 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. Subordinated capital notes included in long-term borrowings averaged $1.5 billion during the two most recent quarters and $1.6 billion in the initial 2014 quarter. On November 1, 2014, M&T Bank redeemed $50 million of 9.50% subordinated notes that were due to mature in 2018. Junior subordinated debentures associated with trust preferred securities that were included in average long-term borrowings were $835 million in each of the first quarter

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of 2015 and the final 2014 quarter and $1.1 billion in the first quarter of 2014. M&T redeemed $350 million of 8.50% junior subordinated debentures associated with trust preferred securities in the first quarter of 2014. In addition, in accordance with its 2015 Capital Plan M&T redeemed on April 15, 2015 the junior subordinated debentures associated with the $310 million of trust preferred securities of M&T Capital Trusts I, II and III. Those borrowings had a weighted-average interest rate of 8.24%. Further information regarding junior subordinated debentures is provided in note 5 of Notes to Financial Statements. Also included in long-term borrowings were agreements to repurchase securities, which averaged $1.4 billion during each of the first quarters of 2015 and 2014 and the fourth quarter of 2014. The agreements have various repurchase dates through 2017, however, the contractual maturities of the underlying securities extend beyond such repurchase dates. The Company has utilized interest rate swap agreements to modify the repricing characteristics of certain components of long-term debt. As of March 31, 2015, interest rate swap agreements were used to hedge approximately $1.4 billion of fixed rate long-term borrowings. 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 2.97% in the recent quarter and 3.32% in the first quarter of 2014. The yield on earning assets during the initial 2015 quarter was 3.54%, down 33 basis points from 3.87% in the year-earlier quarter, while the rate paid on interest-bearing liabilities increased 2 basis points to .57% from ..55%. In the fourth quarter of 2014, the net interest spread was 2.92%, the yield on earning assets was 3.44% and the rate paid on interest-bearing liabilities was .52%. The narrowing of the net interest spread in the recent quarter as compared with the first quarter of 2014 reflects higher average balances of investment securities and interest-bearing deposits held at the Federal Reserve Bank of New York that have substantially lower yields than loans. The 5 basis point improvement in the net interest spread as compared with the final 2014 quarter was largely due to the lower average balances of interest-bearing deposits held at the Federal Reserve Bank of New York, partially offset by higher average balances of investment securities and long-term borrowings and the impact of accelerated accretion of premiums on mortgage-backed securities due to higher than originally expected prepayments.

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 $29.3 billion in the first quarter of 2015, compared with $26.9 billion and $31.4 billion in the first and fourth quarters of 2014, respectively. The increases in average net interest-free funds in the two most recent quarters as compared with the first quarter of 2014 were predominantly the result of higher average balances of noninterest-bearing deposits. Such deposits averaged $25.8 billion in the recent quarter, compared with $24.1 billion and $28.1 billion in the first and fourth quarters of 2014, respectively. The decline in average noninterest-bearing deposits from the fourth quarter of 2014 to the initial 2015 quarter was largely due to a decline in trust-related customer deposits. Goodwill and core deposit and other intangible assets averaged $3.6 billion during each of the quarters ended March 31, 2015, March 31, 2014 and December 31, 2014. The cash surrender value of bank owned life insurance averaged $1.7 billion in each of the three-month periods ended March 31, 2015, March 31, 2014 and December 31, 2014. 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

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margin was .20% in each of the first quarters of 2015 and 2014, compared with .18% in the fourth quarter of 2014.

Reflecting the changes to the net interest spread and the contribution of net interest-free funds as described herein, the Company’s net interest margin was 3.17% in the first three months of 2015, compared with 3.52% in the year-earlier period and 3.10% in the fourth quarter of 2014. 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 interest-bearing liabilities. Periodic settlement amounts arising from these agreements are reflected in the rates paid on interest-bearing liabilities. The notional amount of interest rate swap agreements entered into for interest rate risk management purposes was $1.4 billion at each of March 31, 2015, March 31, 2014 and December 31, 2014. Under the terms of those interest rate swap agreements, the Company received payments based on the outstanding notional amount at fixed rates and made payments at variable rates. Those interest rate swap agreements were designated as fair value hedges of certain fixed rate long-term borrowings.

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. The amounts of hedge ineffectiveness recognized during the quarters ended March 31, 2015, March 31, 2014 and December 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 $73 million at each of March 31, 2015 and December 31, 2014 and $95 million at March 31, 2014. The fair values of such interest rate swap agreements were substantially offset by changes in the fair values of the hedged items. 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 March 31, 2015 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 $49 million of collateral with the Company.

The weighted-average rates to be received and paid under interest rate swap agreements currently in effect were 4.42% and 1.22%, respectively, at March 31, 2015. 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 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 March 31
	2015						2014
	Amount			Rate (a)			Amount			Rate (a)
Increase (decrease) in:
Interest income	$	—			—	%	$	—			—	%
Interest expense		(11,277	)		(.08	)		(11,292	)		(.09	)
Net interest income/margin	$	11,277			.06	%	$	11,292			.06	%
Average notional amount	$	1,400,000					$	1,400,000
Rate received (b)					4.42	%					4.42	%
Rate paid (b)					1.20	%					1.19	%

(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 Federal Reserve Board’s risk-based capital guidelines for inclusion in the Company’s capital. However, pursuant to the Dodd-Frank Act, junior subordinated debentures associated with trust preferred securities are being phased-out of the definition of Tier 1 capital. Effective January 1, 2015, 75% of such junior subordinated debentures are excluded from the Company’s Tier 1 capital, and beginning January 1, 2016, 100% will be excluded. The amounts excluded from Tier 1 capital are 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 were $155 million at March 31, 2015, $180 million at March 31, 2014 and $135 million at December 31, 2014. In general, those borrowings were unsecured and matured on the next business day. In addition to satisfying customer demand, Cayman Islands office deposits may be used by the Company as an alternative to short-term borrowings. Cayman Islands office deposits totaled $179 million, $248 million and $177 million at March 31, 2015, March 31, 2014 and December 31, 2014, respectively. The Company has brokered NOW and brokered money-market deposit accounts which aggregated approximately $1.1 billion at each of March 31, 2015 and December 31, 2014, compared with $1.0 billion at March 31, 2014. Brokered time deposits were not a significant source of funding as of those dates.

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

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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 account 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 $11 million and $4 million at March 31, 2015 and 2014, respectively, while there were no outstanding VRDBs in the Company’s trading account at December 31, 2014. The total amount of VRDBs outstanding backed by M&T Bank letters of credit was $1.9 billion at March 31, 2015, compared with $1.7 billion at March 31, 2014 and $2.0 billion at December 31, 2014. 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 March 31, 2015 approximately $1.2 billion was available for payment of dividends to M&T from banking subsidiaries. Information regarding the long-term debt obligations of M&T is included in note 5 of Notes to Financial Statements.

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 finalized rules requiring a banking company to maintain a minimum amount of liquid assets to withstand a standardized supervisory liquidity stress scenario. The effective date for those rules for the Company is January 1, 2016, 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

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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, projections of net interest income calculated under the varying interest rate scenarios are compared to a base interest rate scenario that is reflective of current interest rates. 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.

The accompanying table as of March 31, 2015 and December 31, 2014 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	March 31, 2015			December 31, 2014
+200 basis points	$	234,291			246,028
+100 basis points		129,404			134,393
-100 basis points		(54,132	)		(74,634	)
-200 basis points		(89,402	)		(109,261	)

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 rates during a twelve-month period of 100 and 200 basis points, as compared with the assumed base scenario. In the event

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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 such 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 trading positions that are also included in the trading account. The fair values of the offsetting 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 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 aggregated $17.1 billion at each of March 31, 2015 and 2014 and $17.6 billion at December 31, 2014. The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes totaled $1.4 billion at March 31, 2015, compared with $1.0 billion and $1.3 billion at March 31 and December 31, 2014, respectively. Although the notional amounts of these 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 were $363 million and $240 million, respectively, at March 31, 2015, $315 million and $216 million, respectively, at March 31, 2014, and $308 million and $203 million, respectively, at December 31, 2014. Included in trading account assets were assets related to deferred compensation plans totaling $25 million at March 31, 2015, compared with $26 million at March 31, 2014 and $27 million at December 31, 2014. 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 March 31, 2015 were $29 million of liabilities related to deferred compensation plans, compared with $30 million at each of March 31 and December 31, 2014. 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 account activities was not material, however, as

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previously noted, the Company is exposed to credit risk associated with counterparties to transactions associated with the Company’s trading activities. Additional information about the Company’s use of derivative financial instruments in its trading account 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 first quarter of 2015 was $38 million, compared with $32 million in the year-earlier quarter and $33 million in the fourth quarter of 2014. Net loan charge-offs were $36 million in the recent quarter, compared with $32 million in each of the first and fourth quarters of 2014. Net charge-offs as an annualized percentage of average loans and leases were .22% in the initial 2015 quarter, compared with .20% in the first quarter of 2014 and .19% in the final 2014 quarter. A summary of net charge-offs by loan type is presented in the table that follows.

NET CHARGE-OFFS

BY LOAN/LEASE TYPE

In thousands

	First Quarter 2015		First Quarter 2014		Fourth Quarter 2014
Commercial, financial, leasing, etc.	$	8,411		9,146		9,397
Real estate:
Commercial		6,094		289		1,262
Residential		2,129		5,822		2,554
Consumer		19,555		16,651		18,858
	$	36,189		31,908		32,071

Included in net charge-offs of consumer loans and leases were net charge-offs during the quarters ended March 31, 2015, March 31, 2014 and December 31, 2014, respectively, of: automobile loans of $4 million in each respective period; recreational vehicle loans of $3 million, $4 million and $3 million; and home equity loans and lines of credit, including Alt-A second lien loans, of $6 million, $4 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 $2.4 billion, $3.7 billion and $2.6 billion at March 31, 2015,

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March 31, 2014 and December 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 March 31, 2015 and December 31, 2014 are presented in the accompanying table.

	Nonaccretable balance - principal
	Remaining balance				Life-to-date charges
	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
	(in thousands)
Commercial, financing, leasing, etc.	$	19,961		19,589		78,084		78,736
Commercial real estate		75,451		70,261		271,490		276,681
Residential real estate		15,104		15,958		60,381		59,552
Consumer		27,701		29,582		79,700		77,819
Total	$	138,217		135,390		489,655		492,788

Nonaccrual loans totaled $791 million or 1.18% of total loans and leases outstanding at March 31, 2015, compared with $891 million or 1.39% a year earlier and $799 million or 1.20% at December 31, 2014. The declines in nonaccrual loans at the two most recent quarter-ends as compared with March 31, 2014 were largely due to lower commercial loans and commercial real estate loans in nonaccrual status.

Accruing loans past due 90 days or more (excluding acquired loans) were $237 million or .35% of total loans and leases at March 31, 2015, compared with $307 million or .48% at March 31, 2014 and $245 million or .37% at December 31, 2014. Those loans included loans guaranteed by government-related entities of $194 million, $291 million and $218 million at March 31, 2015, March 31, 2014 and December 31, 2014, respectively. 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 that are guaranteed by government-related entities totaled $178 million, $251 million and $196 million at March 31, 2015, March 31, 2014 and December 31, 2014, respectively. The remaining accruing loans past due 90 days or more not guaranteed by government-related entities were loans considered to be with creditworthy borrowers that were in the process of collection or renewal. 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 $80 million at March 31, 2015, compared with $121 million at March 31, 2014 and $110 million at December 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 $184 million at March 31, 2015, or approximately .3% of total loans. Purchased impaired loans totaled $303 million and $198 million at March 31 and December 31, 2014, respectively. The decline in such loans from March 31, 2014 was predominantly the result of payments received from customers.

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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 considered such modifications as troubled debt restructurings. 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 full force and, accordingly, the Company has not granted a concession with respect to the ultimate collection of the original loan balance. Such loans aggregated $153 million, $224 million and $149 million at March 31, 2015, March 31, 2014 and December 31, 2014, respectively.

Nonaccrual commercial loans and leases aggregated $195 million at March 31, 2015, $138 million at March 31, 2014 and $177 million at December 31, 2014. The increases in such loans since March 31, 2014 were not concentrated in any particular industry group. Commercial real estate loans classified as nonaccrual totaled $232 million at March 31, 2015, $291 million at March 31, 2014 and $239 million at December 31, 2014. The decreases in such loans at the two most recent quarter-ends as compared with March 31, 2014 was due, in part, to improving economic conditions and reflected lower loans in nonaccrual status to residential builders and developers. Loans to residential builders and developers in nonaccrual status aggregated $65 million and $90 million at March 31, 2015 and 2014, respectively, and $72 million at December 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 March 31, 2015 is presented in the accompanying table.

RESIDENTIAL BUILDER AND DEVELOPER LOANS, NET OF UNEARNED DISCOUNT

	March 31, 2015							Quarter ended March 31, 2015
			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	$	751,974	$	8,571		1.14	%	$	134			.09	%
Pennsylvania		137,105		36,538		26.65			(2	)		(.01	)
Mid-Atlantic		400,934		21,909		5.46			11			.01
Other		365,634		1,504		.41			—			—
Total	$	1,655,647	$	68,522		4.14	%	$	143			.04	%

(a) Includes approximately $24 million of loans not secured by real estate, of which approximately $3 million are in nonaccrual status.

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Residential real estate loans in nonaccrual status at March 31, 2015 were $246 million, compared with $338 million at March 31, 2014 and $258 million at December 31, 2014. The decrease in residential real estate loans classified as nonaccrual from March 31, 2014 was largely related to the payoff during the second quarter of 2014 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 $74 million, $79 million and $78 million at March 31, 2015, March 31, 2014 and December 31, 2014, respectively. Residential real estate loans past due 90 days or more and accruing interest (excluding acquired loans) totaled $197 million at March 31, 2015, compared with $285 million a year earlier and $216 million at December 31, 2014. A substantial portion of such amounts related to guaranteed loans repurchased from government-related entities. Information about the location of nonaccrual and charged-off residential real estate loans as of and for the quarter ended March 31, 2015 is presented in the accompanying table.

Nonaccrual consumer loans aggregated $118 million at March 31, 2015, compared with $124 million at March 31, 2014 and $125 million at December 31, 2014. Included in nonaccrual consumer loans at March 31, 2015, March 31, 2014 and December 31, 2014 were: automobile loans of $14 million, $16 million and $18 million, respectively; recreational vehicle loans of $9 million, $11 million and $11 million, respectively; and outstanding balances of home equity loans and lines of credit, including junior lien Alt-A loans, of $88 million, $83 million and $89 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 March 31, 2015 is presented in the accompanying table.

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SELECTED RESIDENTIAL REAL ESTATE-RELATED LOAN DATA

	March 31, 2015							Quarter ended March 31, 2015
			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	$	3,456,314	$	63,978		1.85	%	$	757			.09	%
Pennsylvania		1,106,917		19,210		1.74			50			.02
Mid-Atlantic		2,026,129		30,854		1.52			705			.14
Other		1,557,014		55,732		3.58			186			.05
Total	$	8,146,374	$	169,774		2.08	%	$	1,698			.08	%
Residential construction loans:
New York	$	5,999	$	144		2.41	%	$	—			—	%
Pennsylvania		3,249		734		22.58			(1	)		(.11	)
Mid-Atlantic		9,730		—		—			—			—
Other		11,199		844		7.54			66			2.14
Total	$	30,177	$	1,722		5.71	%	$	65			.81	%
Alt-A first mortgages:
New York	$	55,606	$	18,263		32.84	%	$	166			1.20	%
Pennsylvania		10,451		2,910		27.84			61			2.34
Mid-Atlantic		65,192		9,670		14.83			10			.06
Other		196,319		43,427		22.12			129			.26
Total	$	327,568	$	74,270		22.67	%	$	366			.44	%
Alt-A junior lien:
New York	$	1,066	$	56		5.24	%	$	107			40.21	%
Pennsylvania		353		34		9.76			—			—
Mid-Atlantic		2,801		141		5.02			(1	)		(.08	)
Other		6,595		508		7.70			282			17.00
Total	$	10,815	$	739		6.83	%	$	388			14.21	%
First lien home equity loans:
New York	$	16,684	$	1,648		9.88	%	$	194			4.55	%
Pennsylvania		54,773		3,282		5.99			87			.62
Mid-Atlantic		72,624		848		1.17			78			.42
Other		1,155		—		—			(2	)		(.50	)
Total	$	145,236	$	5,778		3.98	%	$	357			.96	%
First lien home equity lines:
New York	$	1,358,769	$	15,112		1.11	%	$	463			.14	%
Pennsylvania		838,591		5,922		.71			373			.18
Mid-Atlantic		857,883		3,959		.46			184			.09
Other		37,985		1,515		3.99			—			—
Total	$	3,093,228	$	26,508		.86	%	$	1,020			.13	%
Junior lien home equity loans:
New York	$	13,923	$	4,590		32.97	%	$	(165	)		(4.72	)%
Pennsylvania		17,731		998		5.63			(18	)		(.39	)
Mid-Atlantic		59,825		1,510		2.52			3			.02
Other		7,398		856		11.57			344			18.01
Total	$	98,877	$	7,954		8.04	%	$	164			.65	%
Junior lien home equity lines:
New York	$	940,262	$	30,449		3.24	%	$	1,903			.81	%
Pennsylvania		387,109		4,484		1.16			717			.74
Mid-Atlantic		1,179,393		10,267		.87			1,816			.62
Other		68,065		1,806		2.65			(27	)		(.16	)
Total	$	2,574,829	$	47,006		1.83	%	$	4,409			.69	%

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Real estate and other foreclosed assets totaled $63 million and $59 million at March 31, 2015 and March 31, 2014, and $64 million at December 31, 2014. At March 31, 2015, foreclosed assets included $42 million of residential real estate properties.

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

NONPERFORMING ASSET AND PAST DUE, RENEGOTIATED AND IMPAIRED LOAN DATA

Dollars in thousands

	2015			2014 Quarters
	First Quarter			Fourth			Third			Second			First
Nonaccrual loans	$	790,586			799,151			847,784			880,134		$	890,893
Real estate and other foreclosed assets		62,578			63,635			67,629			59,793			59,407
Total nonperforming assets	$	853,164			862,786			915,413			939,927		$	950,300
Accruing loans past due 90 days or more (a)	$	236,621			245,020			312,990			289,016		$	307,017
Government guaranteed loans included in totals above:
Nonaccrual loans	$	60,508			69,095			68,586			81,817		$	75,959
Accruing loans past due 90 days or more		193,618			217,822			265,333			275,846			291,418
Renegotiated loans	$	198,911			202,633			209,099			270,223		$	257,889
Acquired accruing loans past due 90 days or more (b)	$	80,110			110,367			132,147			134,580		$	120,996
Purchased impaired loans (c):
Outstanding customer balance	$	335,079			369,080			429,915			504,584		$	534,331
Carrying amount		184,018			197,737			236,662			282,517			303,388
Nonaccrual loans to total loans and leases, net of unearned discount		1.18	%		1.20	%		1.29	%		1.36	%		1.39	%
Nonperforming assets to total net loans and leases and real estate and other foreclosed assets		1.27	%		1.29	%		1.39	%		1.45	%		1.48	%
Accruing loans past due 90 days or more (a) to total loans and leases, net of unearned discount		.35	%		.37	%		.48	%		.45	%		.48	%

(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.

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.

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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 March 31, 2015 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 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 troubled state of financial and credit markets, including the impact international economic conditions could have on the U.S. economy; Federal Reserve positioning of monetary policy; low levels of workforce participation; 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 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. Criticized commercial loans and commercial real estate loans were $2.0 billion at March 31, 2015, compared with $1.8 billion at each of March 31, 2014 and December 31, 2014. The increase since December 31, 2014 included approximately $129 million related to commercial loans to customers operating in varied industries. 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 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 loans 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

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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 loans 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 March 31, 2015, 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 73% (or approximately 32% 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 March 31, 2015, the balance of junior lien loans and lines that were in nonaccrual status solely as a result of first lien loan performance was $22 million, compared with $30 million at March 31, 2014 and $24 million at December 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 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

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amortization period of up to twenty years. At March 31, 2015, approximately 92% 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 22% were making contractually allowed payments that do not include 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. Except for consumer loans and residential real estate loans that are 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

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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 March 31, 2015 appropriately reflected credit losses inherent in the portfolio as of that date. The allowance for credit losses was $921 million, or 1.37% of total loans and leases at March 31, 2015, compared with $917 million or 1.43% at March 31, 2014 and $920 million or 1.38% at December 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 had been recorded at estimated fair value based on estimated future cash flows expected to be received on those loans. Those cash flows include 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 portfolios 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 117% at March 31, 2015, compared with 103% a year earlier and 115% at December 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 assessing the adequacy of 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 $440 million in the first quarter of 2015, compared with $420 million in the year-earlier quarter and $452 million in the fourth quarter of 2014. The predominant factor contributing to the improvement from the first quarter of 2014 was a $22 million increase in mortgage banking revenues. As compared with the fourth quarter of 2014, the decline in other income reflected a decrease in loan syndication fees and declines in service charges on deposit accounts and trust income, partially offset by higher mortgage banking revenues.

Mortgage banking revenues totaled $102 million in the recent quarter, compared with $80 million in the initial quarter of 2014 and $94 million in the final 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 multi-family 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 $79 million in the first quarter of 2015, compared with $65 million in the year-earlier quarter and $71 million in the fourth quarter of 2014. The improvement in residential mortgage banking revenues from each of the first and fourth quarters of 2014 to the recent quarter reflects an increase in commitments to originate loans for sale. The higher volumes in the recent quarter largely resulted from increased refinancing activity by consumers due to a decline in interest rates early in the quarter.

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New commitments to originate residential real estate loans to be sold were approximately $936 million in 2015’s initial quarter, compared with $728 million in the year-earlier quarter and $735 million in the final quarter of 2014. 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 net unrealized gains and losses attributable to residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans totaled to gains of $21 million in the first quarter of 2015, compared with gains of $15 million and $14 million in the first and fourth quarters of 2014, respectively.

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 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 during each of the first quarter of 2015 and the final quarter of 2014 were reduced by $1 million related to the actual or anticipated settlement of repurchase obligations. Similar reductions in the initial 2014 quarter were less than $1 million.

Loans held for sale that were secured by residential real estate totaled $423 million and $292 million at March 31, 2015 and 2014, respectively, and $435 million at December 31, 2014. Commitments to sell residential real estate loans and commitments to originate residential real estate loans for sale at pre-determined rates were $859 million and $661 million, respectively, at March 31, 2015, compared with $655 million and $522 million at March 31, 2014, and $717 million and $432 million, respectively, at December 31, 2014. Net recognized unrealized gains on residential real estate loans held for sale, commitments to sell loans, and commitments to originate loans for sale were $21 million and $17 million at March 31, 2015 and March 31, 2014, respectively, and $19 million at December 31, 2014. Changes in such net unrealized gains and losses are recorded in mortgage banking revenues and resulted in a net increase in revenue of $2 million in the most recent quarter, compared with net decreases in revenue of $2 million in each of the first and fourth quarters of 2014.

Revenues from servicing residential real estate loans for others were $58 million in the recent quarter, compared with $50 million and $56 million during the quarters ended March 31, 2014 and December 31, 2014, respectively. Residential real estate loans serviced for others totaled $65.0 billion at March 31, 2015, $73.0 billion at March 31, 2014 and $67.2 billion at December 31, 2014. Reflected in residential real estate loans serviced for others were loans sub-serviced for others of $40.4 billion, $47.4 billion and $42.1 billion at March 31, 2015, March 31, 2014 and December 31, 2014, respectively. Revenues earned for sub-servicing loans were $35 million in the first quarter of 2015, $26 million in the year-earlier quarter and $33 million in the fourth quarter of 2014. The contractual servicing rights associated with loans sub-serviced by the Company were predominantly held by affiliates of Bayview Lending Group LLC (“BLG”).

Capitalized servicing rights consist largely of servicing associated with loans sold by the Company. Capitalized residential mortgage loan servicing assets totaled $111 million at each of March 31, 2015 and December 31, 2014, compared with $123 million at March 31, 2014.

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Commercial mortgage banking revenues were $23 million in each of the two most recent quarters, compared with $15 million in the first quarter of 2014. Included in such amounts were revenues from loan origination and sales activities of $13 million in each of the first quarter of 2015 and fourth quarter of 2014, compared with $7 million in the first quarter of 2014. Commercial real estate loans originated for sale to other investors totaled approximately $455 million in the first quarter of 2015, compared with $136 million and $570 million in the first and fourth quarters of 2014, respectively. Loan servicing revenues were $10 million in each of the two most recent quarters, compared with $8 million in the initial quarter of 2014. Capitalized commercial mortgage servicing assets aggregated $74 million at March 31, 2015, $71 million at March 31, 2014 and $73 million at December 31, 2014. Commercial real estate loans serviced for other investors totaled $11.4 billion, $11.2 billion and $11.3 billion at March 31, 2015, March 31, 2014 and December 31, 2014, respectively, and included $2.4 billion, $2.3 billion and $2.4 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 $464 million and $347 million, respectively, at March 31, 2015, $190 million and $152 million, respectively, at March 31, 2014 and $520 million and $212 million, respectively, at December 31, 2014. Commercial real estate loans held for sale at March 31, 2015, March 31, 2014 and December 31, 2014 were $117 million, $38 million, and $308 million, respectively.

Service charges on deposit accounts totaled $102 million in the first quarter of 2015, compared with $104 million in the year-earlier quarter and $106 million in the final 2014 quarter. The recent quarter’s decline as compared with the earlier periods 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, $57 million and $63 million during the quarters ended March 31, 2015, March 31, 2014 and December 31, 2014, respectively. In the first quarter of 2015, the Company announced that it had agreed to sell the trade processing business within the retirement services division of ICS that was acquired with Wilmington Trust. That divestiture occurred on April 10, 2015. The portion of the business that was ultimately sold in April generated revenues of approximately $34 million in 2014 and $9 million during the first quarter of 2015. After considering related expenses, including the portion of those revenues paid to sub-advisors, net income attributable to the business that was sold was not material to the consolidated results of operations of the Company. Revenues attributable to WAS were approximately $56 million and $53 million for the three-month periods ended March 31, 2015 and 2014, respectively, and $55 million for the three-month period ended December 31, 2014. In total, trust income aggregated $124 million in the recent quarter, compared with $121 million and $128 million in the first and fourth quarters of 2014, respectively. Total trust assets, which include assets under management and assets under administration, aggregated $293.4 billion at March 31, 2015, compared with $270.5 billion and $287.9 billion at March 31, 2014 and December 31, 2014, respectively. Trust assets under management were $69.4 billion, $65.9 billion and $68.2 billion at March 31, 2015, March 31, 2014 and December 31, 2014, respectively. The Company’s proprietary mutual funds

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had assets of $12.8 billion, $13.0 billion and $13.3 billion at March 31, 2015, March 31, 2014 and December 31, 2014, respectively.

Brokerage services income, which includes revenues from the sale of mutual funds and annuities and securities brokerage fees, totaled $15 million in the recent quarter, compared with $17 million in the year-earlier quarter and $16 million in the fourth quarter of 2014. Gains from trading account and foreign exchange activity totaled $6 million during the initial quarters of 2015 and 2014, compared with $8 million in the final 2014 quarter. 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.”

M&T’s share of the operating losses of BLG was $4 million in each of the first quarter of 2015, the year-earlier quarter and the fourth quarter of 2014. 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 bondholders. 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. 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 $95 million in the first quarter of 2015, compared with $96 million in the year-earlier quarter and $103 million in the fourth quarter of 2014. The recent quarter’s decline as compared with the final 2014 quarter was largely attributable to lower fees for providing loan syndication, underwriting and advisory services. Included in other revenues from operations were the following significant components. Letter of credit and other credit-related fees totaled $26 million in the recent quarter, compared with $32 million in the first quarter of 2014 and $33 million in the fourth 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 $11 million during the recent quarter, compared with $12 million in the initial quarter of 2014 and $13 million in the final quarter of 2014. Revenues from merchant discount and credit card fees were $24 million in the quarter ended March 31, 2015, compared with $22 million and $26 million in the quarters ended March 31, 2014 and December 31, 2014, respectively. Insurance-related sales commissions and other revenues totaled $11 million in the initial quarter of 2015, compared with $12 million in the year-earlier quarter and $9 million in the fourth quarter of 2014. Other miscellaneous revenues and the changes in such revenues from period-to-period were not individually significant.

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Other Expense

Effective January 1, 2015, M&T adopted amended guidance from the FASB for accounting for investments in qualified affordable housing projects under which the initial cost of such investments is amortized to income tax expense in proportion to the tax benefit received. The adoption of this accounting guidance did not have a significant effect on the Company’s financial position or results of operations, but did result in the restatement of the consolidated financial statements for 2014 and earlier years to remove net costs associated with qualified affordable housing projects from other expense and include the amortization of the investments in income tax expense. As a result, the amortization included in income tax expense was $10 million and $12 million in the first quarters of 2015 and 2014, respectively. Similarly, losses removed from other costs of operations and amortization amounts now included in income tax expense were $14 million in each of the second, third and fourth quarters of 2014.

Reflecting the application of the new accounting guidance, other expense totaled $686 million in the first quarter of 2015, compared with $690 million in the year-earlier quarter and $666 million in the final 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 $7 million in each of the two most recent quarters and $10 million in the first quarter of 2014. There were no merger-related expenses during those respective quarters. Exclusive of these nonoperating expenses, noninterest operating expenses totaled $680 million in each of the first quarters of 2015 and 2014 and $659 million in the fourth quarter of 2014. Operating expenses in the recent quarter as compared with the year-earlier period reflected lower costs for professional services, FDIC assessments and equipment and net occupancy expenses that were offset by higher salaries and employee benefits expenses. The rise in noninterest operating expenses from the fourth quarter of 2014 was largely due to seasonally higher stock-based compensation and employee benefits expenses offset, in part, by lower professional services costs. Table 2 provides a reconciliation of other expense to noninterest operating expense.

Salaries and employee benefits expense totaled $390 million in 2015’s initial quarter, compared with $371 million in the year-earlier quarter and $345 million in the fourth quarter of 2014. As compared with the year-earlier period, the recent quarter reflects the impact of annual merit increases for employees, higher incentive compensation costs and higher pension expense. The increase in pension expense is predominantly attributable to an increase in the amortization of unrecognized actuarial losses. Cumulative unrecognized actuarial losses increased from $191 million at December 31, 2013 to $512 million at December 31, 2014 due predominantly to a 75 basis point reduction in the discount rate and revised mortality tables released in 2014 by the Society of Actuaries used to determine the pension benefit obligation. In accordance with GAAP, net unrecognized gains or losses that exceed ten percent of the greater of the projected benefit obligation or the market-related value of plan assets are required to be amortized over the expected service period of active employees, and are included as a component of net pension cost. In addition to higher pension expense and merit increases, seasonally higher stock-based compensation, unemployment insurance, payroll-related taxes and the Company’s contributions for retirement savings plan benefits related to annual incentive compensation payments also contributed to the rise in salaries and employee benefits expense in the recent quarter as compared with the fourth quarter of 2014. The Company, in accordance with GAAP, has accelerated the recognition of compensation costs for stock-based awards granted to retirement-eligible employees and employees who will become retirement-eligible prior to full vesting of the award. As a result, stock-based compensation expense during the first quarters of 2015 and 2014 included $14 million and $16 million, respectively, that would have been recognized over the normal vesting period

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if not for the accelerated expense recognition provisions of GAAP. That acceleration had no effect on the value of stock-based compensation awarded to employees. Salaries and employee benefits expense included stock-based compensation of $28 million and $30 million in the quarters ended March 31, 2015 and March 31, 2014, respectively, and $12 million in the quarter ended December 31, 2014. The number of full-time equivalent employees was 15,263 at March 31, 2015, compared with 15,316 and 15,312 at March 31, 2014 and December 31, 2014, respectively.

Excluding the nonoperating expenses described earlier from each quarter, nonpersonnel operating expenses were $290 million and $309 million in the quarters ended March 31, 2015 and March 31, 2014, respectively, and $314 million in the fourth quarter of 2014. The decrease in such expenses in the recent quarter as compared with the year-earlier quarter and the final quarter of 2014 reflected a lower level of professional services costs. Professional services costs include legal expenses, which were elevated in the fourth quarter of 2014. Other professional services costs were lower in the initial quarter of 2015 as certain projects were either completed or reached significant milestones. Professional services costs related to BSA/AML compliance, capital planning and stress testing, risk management and other operational initiatives were elevated throughout 2014. As compared with the first quarter of 2014, in addition to the decline in professional services costs, lower FDIC assessments and equipment and net occupancy expenses also contributed to the decrease in nonpersonnel operating expenses in the initial 2015 quarter. The efficiency ratio measures the relationship of noninterest operating expenses to revenues. The Company’s efficiency ratio was 61.5% in the first quarter of 2015, compared with 62.8% in the year-earlier period and 57.8% in the fourth quarter of 2014.

Income Taxes

The provision for income taxes for the first quarter of 2015 was $134 million, compared with $125 million in the year-earlier quarter and $157 million in the fourth quarter of 2014. The effective tax rates were 35.6%, 35.4% and 36.1% for the quarters ended March 31, 2015, March 31, 2014 and December 31, 2014, respectively. As noted earlier, effective January 1, 2015 M&T adopted amended guidance from the FASB for accounting for investments in qualified affordable housing projects, which resulted in the restatement of the consolidated financial statements for 2014 and earlier years. The adoption of the guidance resulted in higher effective tax rates than existed prior to such adoption. 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 $12.5 billion at March 31, 2015, representing 12.73% of total assets, compared with $11.9 billion or 13.43% at March 31, 2014 and $12.3 billion or 12.76% at December 31, 2014.

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Included in shareholders’ equity was preferred stock with a financial statement carrying value of $1.2 billion at each of March 31, 2015, March 31, 2014 and December 31, 2014. Further information concerning M&T’s preferred stock can be found in note 6 of Notes to Financial Statements.

Common shareholders’ equity aggregated $11.3 billion, or $84.95 per share, at March 31, 2015, compared with $10.7 billion, or $81.05 per share, at March 31, 2014 and $11.1 billion, or $83.88 per share, at December 31, 2014. Tangible equity per common share, which excludes goodwill and core deposit and other intangible assets and applicable deferred tax balances, was $58.29 at March 31, 2015, $53.92 at March 31, 2014 and $57.06 at December 31, 2014. The Company’s ratio of tangible common equity to tangible assets was 8.17% at March 31, 2015, compared with 8.34% a year earlier and 8.11% at December 31, 2014. 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 $153 million, or $1.15 per common share, at March 31, 2015, compared with net unrealized gains of $72 million, or $.55 per common share, at March 31, 2014 and $127 million, or $.96 per common share, at December 31, 2014. Information about unrealized gains and losses as of March 31, 2015 and December 31, 2014 is included in note 3 of Notes to Financial Statements.

Reflected in net unrealized gains at March 31, 2015 were pre-tax effect unrealized losses of $30 million on available-for-sale investment securities with an amortized cost of $1.7 billion and pre-tax effect unrealized gains of $308 million on securities with an amortized cost of $8.7 billion. The pre-tax effect unrealized losses reflect $19 million of losses on trust preferred securities issued by financial institutions having an amortized cost of $124 million and an estimated fair value of $105 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.

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 considering recent performance of the mortgage loan collateral and utilizing assumptions about future defaults and loss severity. These bond-specific cash flows also reflect the placement of the bond in the overall securitization structure and the remaining subordination levels. In total, at March 31, 2015 and December 31, 2014, the Company had in its held-to-maturity portfolio privately issued mortgage-backed securities with an amortized cost basis of $198 million and $202 million, respectively, and a fair value of $162 million and $158 million, respectively. At March 31, 2015, 87% of the mortgage-backed securities were in the most senior tranche of the securitization structure with 28% being independently rated as investment grade. The mortgage-backed securities are generally collateralized by residential and small-balance commercial real estate loans originated between 2004 and 2008 and had a weighted-average credit enhancement of 16% at March 31, 2015, 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 March 31, 2015.

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The weighted-average default percentage and loss severity assumptions utilized in the Company’s internal modeling were 33% and 74%, respectively. The Company has concluded that as of March 31, 2015, its privately issued mortgage-backed securities were not other-than-temporarily impaired. Nevertheless, it is possible that adverse changes in the future performance of mortgage loan collateral underlying such securities could impact the Company’s conclusions.

As of March 31, 2015, 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 additional other-than-temporary impairment charges were not appropriate. It is likely that the Company will 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 $25 million and $30 million, respectively, at March 31, 2015 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 $301 million, or $2.26 per common share, at March 31, 2015, $306 million, or $2.31 per common share, at December 31, 2014, and $97 million, or $.74 per common share, at March 31, 2014. The increase in such adjustment at March 31, 2015 and December 31, 2014 as compared with March 31, 2014 was the result of two main factors: a 75 basis point decrease in the discount rate used to measure the benefit obligations of the defined benefit plans and the use of updated mortality tables for the U.S. published in 2014 by the Society of Actuaries.

Cash dividends declared on M&T’s common stock during the quarter ended March 31, 2015 totaled $94 million, compared with $92 million and $93 million in the quarters ended March 31 and December 31, 2014, respectively, and represented a quarterly dividend payment of $.70 per common share in each of those three quarters.

Cash dividends declared on preferred stock are detailed in the table that follows. There were no cash dividends declared in the first quarter of 2014 on the Series E Preferred Stock issued in February 2014.

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PREFERRED STOCK DIVIDENDS

Dollars in thousands

	First Quarter 2015		First Quarter 2014		Fourth Quarter 2014
Series A	$	3,666		3,666		3,666
Series C		2,414		2,414		2,414
Series D		8,594		8,594		8,594
Series E		5,644		—		5,644
Total	$	20,318		14,674		20,318

The Company did not repurchase any shares of its common stock during 2014 or the first quarter of 2015.

M&T and its subsidiary banks are required to comply with applicable capital adequacy standards established by the federal banking agencies. In July 2013, the Federal Reserve Board, the OCC and the FDIC approved New Capital Rules establishing a new comprehensive capital framework for U.S. banking organizations. These rules went into effect as to M&T and its subsidiary banks on January 1, 2015, subject to phase-in periods for certain components and other provisions.

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 its subsidiaries, M&T Bank and Wilmington Trust, N.A., as compared to the U.S. general risk-based capital rules that were applicable to the Company through December 31, 2014. The New Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The New Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios. In addition, the New Capital Rules implement certain provisions of the Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules.

Among other matters, the New Capital Rules: (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to the previous regulations. Under the New Capital Rules, for most banking organizations, including M&T, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock and the most common forms of Tier 2 capital are subordinated notes and a portion of the allowance for loan and lease losses, in each case, subject to the New Capital Rules’ specific requirements.

Pursuant to the New Capital Rules, the minimum capital ratios as of January 1, 2015 are as follows:

• 4.5% CET1 to risk-weighted assets;

• 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;

• 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and

• 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (known as the “leverage ratio”).

Pursuant to the New Capital Rules, non-advanced approaches banking organizations, including M&T, may make a one-time permanent election to exclude the effects of certain accumulated other comprehensive income or loss

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items reflected in shareholders’ equity under U.S. GAAP. M&T made that election during the first quarter of 2015. The New Capital Rules also 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 became includable in Tier 1 capital, and in 2016, 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. A detailed discussion of the new regulatory capital rules is included in Part I, Item 1 of Form 10-K for the year ended December 31, 2014.

The regulatory capital ratios of the Company, M&T Bank and Wilmington Trust, N.A. as of March 31, 2015 are presented in the accompanying table.

REGULATORY CAPITAL RATIOS

March 31, 2015

	M&T (Consolidated)			M&T Bank			Wilmington Trust, N.A.
Common equity Tier 1		9.78	%		10.33	%		57.32	%
Tier 1 capital		11.68	%		10.33	%		57.32	%
Total capital		14.92	%		12.88	%		57.87	%
Tier 1 leverage		10.17	%		9.02	%		19.61	%

On March 12, 2015, M&T announced that the Federal Reserve did not object to M&T’s proposed 2015 Capital Plan. Accordingly, M&T may maintain a quarterly common stock dividend of $.70 per share; continue to pay dividends and interest on other equity and debt instruments included in regulatory capital, including preferred stock, trust preferred securities and subordinated debt that were outstanding at December 31, 2014, consistent with the contractual terms of those instruments; repurchase up to $200 million of common shares during the first half of 2016; and redeem or repurchase up to $310 million of trust preferred securities. Common and preferred dividends are subject to approval by M&T’s Board of Directors in the ordinary course of business. As noted earlier, M&T redeemed $310 million of trust preferred securities on April 15, 2015.

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. During 2015, certain methodology changes were made and, accordingly, the financial information for the Company’s reportable segments for 2014 have been restated to conform with the methods and assumptions used in 2015. As described in note 14 of Notes to Financial Statements, the methodology changes were largely the result of updated funds transfer pricing and various cost allocations. Additionally, the segment financial data also reflect the Company’s adoption of amended guidance for accounting for investments in qualified affordable housing projects.

The Business Banking segment earned $25 million in each of the first quarters of 2015 and 2014, compared with $26 million in the fourth quarter of 2014. As compared with the first quarter of 2014, a $4 million decrease in net interest income in the recent quarter was largely offset by higher merchant discount and credit card fees and lower noninterest operating expenses. The lower net interest income reflects a narrowing of the net

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interest margin on deposits of 26 basis points, partially offset by a $444 million increase in average outstanding deposit balances. The modest decrease in net income in the recent quarter as compared with the immediately preceding quarter resulted from a $4 million decrease in net interest income, partially offset by lower costs associated with the allocation of expenses related to BSA/AML compliance, risk management, and other operational initiatives across the Company. The decline in net interest income resulted largely from a 4 basis point narrowing of the net interest margin on loans and a $346 million decline in average outstanding deposit balances.

Net income earned by the Commercial Banking segment totaled $96 million in the first quarter of 2015, compared with $99 million for each of the three-month periods ended March 31, 2014 and December 31, 2014. The 2% decline in net income as compared with the first quarter of 2014 resulted largely from a $3 million decrease in net interest income and a $4 million decrease in credit-related fees. The decline in net interest income was the result of a narrowing of the net interest margin on loans and deposits of 11 basis points and 17 basis points, respectively, partially offset by higher average outstanding loan and deposit balances of $1.2 billion and $912 million, respectively. The recent quarter’s decline in net income as compared with 2014’s fourth quarter was largely due to a $4 million decrease in net interest income, a $4 million increase in the provision for credit losses and a $2 million decrease in credit-related fees, partially offset by lower FDIC assessments and other operating expenses. The lower net interest income reflected a narrowing of the net interest margin on loans of 3 basis points and lower average deposit balances of $107 million offset, in part, by higher average outstanding loans of $574 million.

The Commercial Real Estate segment’s net income aggregated $80 million for the first quarter of 2015, up 10% from the $73 million earned in the first three months of 2014, but down 4% from the $83 million recorded in 2014’s fourth quarter. The improvement from the year-earlier quarter reflects a $7 million increase in mortgage banking revenues and a $4 million decrease in the provision for credit losses, the result of recoveries of previously charged off loans in the recent quarter, partially offset by higher personnel-related expenses of $2 million. The increase in mortgage banking revenues was largely due to higher loan origination and sales activities. The decline in net income as compared with the final 2014 quarter was largely due to a $4 million decrease in credit-related fees and a $4 million decline in net interest income. The lower net interest income was due to a narrowing of the net interest margin on loans and deposits of 4 basis points each, partially offset by increases in average outstanding loan and deposit (predominantly noninterest-bearing) balances of $331 million and $106 million, respectively.

The Discretionary Portfolio segment recorded net income of $6 million during the three-month period ended March 31, 2015, compared with $11 million in the year-earlier period and $9 million in the fourth quarter of 2014. The decline in net income as compared with the first quarter of 2014 reflects a $9 million decrease in net interest income that was largely attributable to a 32 basis point narrowing of the net interest margin on investment securities, partially offset by a $4.1 billion increase in average balances of investment securities due to purchases of Fannie Mae and Ginnie Mae mortgage-backed securities to meet new liquidity requirements that are scheduled to become effective for M&T on January 1, 2016. The recent quarter’s unfavorable performance as compared with the immediately preceding quarter resulted largely from a $6 million decrease in net interest income that resulted from a 17 basis point narrowing of the net interest margin on investment securities, partially offset by a $399 million increase in average outstanding investment securities balances.

Net income of the Residential Mortgage Banking segment rose 72% to $32 million in the recent quarter from $19 million in the first quarter of 2014,

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and was 43% higher than the $22 million earned in 2014’s fourth quarter. The improved performance from the year-earlier period was attributable to the following favorable factors: a $9 million increase in revenues from mortgage origination and sales activities (including intersegment revenues), due to higher origination volumes; an $8 million increase in revenues from servicing residential real estate loans, predominantly the result of higher sub-servicing fees; and reduced amortization of capitalized servicing assets reflecting reduced prepayment speeds associated with serviced loans. The main factors contributing to the recent quarter’s increased net income as compared with the final quarter of 2014 was an $8 million increase in revenues from mortgage origination and sales activities (including intersegment revenues), due to higher origination volumes, and lower operating expenses, including reduced personnel and professional services costs and lower amortization of capitalized servicing assets.

Net income earned by the Retail Banking segment totaled $69 million in each of the first quarters of 2015 and 2014, compared with $59 million in the fourth quarter of 2014. As compared with the first quarter of 2014, a $3 million decrease in net interest income and lower service charges on deposit accounts were offset by lower personnel, equipment and occupancy expenses. The decrease in net interest income reflected a 10 basis point narrowing of the net interest margin on deposits and a $120 million decrease in average outstanding deposit balances, partially offset by a $652 million increase in average outstanding loan balances. The recent quarter’s 16% improvement in net income as compared with the fourth quarter of 2014 reflected a $10 million decrease in advertising and promotional expenses largely associated with the launch of the new brand campaign throughout the Company’s footprint during the final 2014 quarter, a $3 million decrease in personnel expenses and lower operating expenses related to the allocation of the costs of Company-wide operational initiatives, offset, in part, by a $6 million seasonal decline in service charges on deposit accounts and a $4 million decrease in net interest income, reflecting a narrowing of the margin on deposit balances.

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 related to acquisitions 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 income of the Company that reflects the ICS and WAS business activities. The various components of the “All Other” category resulted in net losses totaling $67 million for the quarter ended March 31, 2015, $66 million in the first quarter of 2014 and $22 million in the fourth quarter of 2014. As compared with the first quarter of 2014, higher personnel-related expenses in the recent quarter due to BSA/AML and other company-wide initiatives and a $4 million increase in advertising, promotion and travel expenses were largely offset by lower professional services costs of $11 million, a $3 million decrease in amortization of core deposit intangibles and declines in other operating expenses. The most significant factors contributing to the increased net loss in the recent quarter as compared with the immediately preceding quarter were: a $51 million increase 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 2015; an $8 million increase in advertising, promotion, and travel expenses; a decline in trust income of $5 million; and the unfavorable 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.

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Recent Accounting Developments

As previously noted, the Company adopted amended accounting guidance for investments in qualified affordable housing projects under which the initial cost of investments in qualified affordable housing projects is amortized in proportion to the tax credits and other tax benefits received from such projects and recognized in the income statement as a component of income tax expense. As required, the guidance was applied retrospectively to all periods presented. The adoption of this guidance did not have a significant effect on the Company’s financial position or results of operations, but did result in the restatement of the consolidated statement of income for the three-month period ended March 31, 2014 to remove $12 million of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The Company amortized $10 million of its investments in qualified affordable housing projects to income tax expense during the three-month period ended March 31, 2015.

In the first quarter of 2015, the Company adopted amended accounting guidance from the FASB related to the classification of certain government-guaranteed mortgage loans upon foreclosure. This guidance requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based upon the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The adoption of this guidance did not have a significant effect on the Company’s consolidated financial position or results of operations.

Effective January 1, 2015, the Company adopted amended accounting guidance for repurchase-to-maturity transactions and repurchase financings. The adoption had no impact on the Company’s consolidated financial position or results of operations. The Company has made the required disclosures in note 5 of Notes to Financial Statements.

In January 2015, the Company also adopted 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 that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The Company’s adoption of this guidance on January 1, 2015 did not have a significant effect on the Company’s financial position or results of operations. The Company has made the required disclosures in note 4 of Notes to Financial Statements.

In April 2015, the FASB issued amended accounting guidance for debt issuance costs. The amended guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a

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direct deduction from the carrying amount of that debt liability. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect a material change in the presentation of its financial position upon adoption of this amended guidance.

In February 2015, the FASB issued amended accounting guidance relating to the consolidation of variable interest entities to modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities and to eliminate the presumption that a general partner should consolidate a limited partnership. The amended guidance also eliminates certain conditions in the assessment of whether fees paid by a legal entity to a decision maker or a service provider represent a variable interest in the legal entity and reduces the extent to which related party arrangements cause an entity to be considered a primary beneficiary. The new guidance eliminates the indefinite deferral of existing consolidation guidance for certain investment funds, but provides a scope exception for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. This guidance is effective for annual and interim periods within those annual periods beginning after December 15, 2015. 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 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 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

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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 application. 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.

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

	2015			2014 Quarters
	First Quarter			Fourth			Third			Second			First
Earnings and dividends
Amounts in thousands, except per share
Interest income (taxable-equivalent basis)	$	743,925			762,619			748,864			740,139			728,897
Interest expense		78,499			74,772			73,964			65,176			66,519
Net interest income		665,426			687,847			674,900			674,963			662,378
Less: provision for credit losses		38,000			33,000			29,000			30,000			32,000
Other income		440,203			451,643			451,111			456,412			420,107
Less: other expense		686,375			666,221			665,359			667,660			690,234
Income before income taxes		381,254			440,269			431,652			433,715			360,251
Applicable income taxes		133,803			156,713			150,467			143,530			125,289
Taxable-equivalent adjustment		5,838			6,007			5,841			5,849			5,945
Net income	$	241,613			277,549			275,344			284,336			229,017
Net income available to common shareholders-diluted	$	218,837			254,239			251,917			260,695			211,731
Per common share data
Basic earnings	$	1.66			1.93			1.92			1.99			1.63
Diluted earnings		1.65			1.92			1.91			1.98			1.61
Cash dividends	$	.70			.70			.70			.70			.70
Average common shares outstanding
Basic		132,049			131,450			131,265			130,856			130,212
Diluted		132,769			132,278			132,128			131,828			131,126
Performance ratios, annualized
Return on
Average assets		1.02	%		1.12	%		1.17	%		1.27	%		1.07	%
Average common shareholders’ equity		7.99	%		9.10	%		9.18	%		9.79	%		8.22	%
Net interest margin on average earning assets (taxable-equivalent basis)		3.17	%		3.10	%		3.23	%		3.40	%		3.52	%
Nonaccrual loans to total loans and leases, net of unearned discount		1.18	%		1.20	%		1.29	%		1.36	%		1.39	%
Net operating (tangible) results (a)
Net operating income (in thousands)	$	245,776			281,929			279,838			289,974			235,162
Diluted net operating income per common share		1.68			1.95			1.94			2.02			1.66
Annualized return on
Average tangible assets		1.08	%		1.18	%		1.24	%		1.35	%		1.15	%
Average tangible common shareholders’ equity		11.90	%		13.55	%		13.80	%		14.92	%		12.76	%
Efficiency ratio (b)		61.46	%		57.84	%		58.44	%		58.20	%		62.83	%
Balance sheet data
In millions, except per share
Average balances
Total assets (c)	$	95,892			98,644			93,245			89,873			86,665
Total tangible assets (c)		92,346			95,093			89,689			86,311			83,096
Earning assets		85,212			87,965			82,776			79,556			76,288
Investment securities		13,376			12,978			12,780			10,959			9,265
Loans and leases, net of unearned discount		66,587			65,767			64,763			64,343			63,763
Deposits		71,698			75,515			70,772			69,659			67,327
Common shareholders’ equity (c)		11,227			11,211			11,015			10,808			10,576
Tangible common shareholders’ equity (c)		7,681			7,660			7,459			7,246			7,007
At end of quarter
Total assets (c)	$	98,378			96,686			97,228			90,835			88,530
Total tangible assets (c)		94,834			93,137			93,674			87,276			84,965
Earning assets		87,959			86,278			86,751			80,062			77,950
Investment securities		14,393			12,994			13,348			12,120			10,364
Loans and leases, net of unearned discount		67,099			66,669			65,572			64,748			64,135
Deposits		73,594			73,582			74,342			69,829			68,699
Common shareholders’ equity, net of undeclared cumulative preferred dividends (c)		11,294			11,102			11,099			10,934			10,652
Tangible common shareholders’ equity (c)		7,750			7,553			7,545			7,375			7,087
Equity per common share		84.95			83.88			83.99			82.86			81.05
Tangible equity per common share		58.29			57.06			57.10			55.89			53.92
Market price per common share
High	$	129.58			128.96			128.69			125.90			123.04
Low		111.78			112.42			118.51			116.10			109.16
Closing		127.00			125.62			123.29			124.05			121.30

(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

	2015			2014 Quarters
	First Quarter			Fourth			Third			Second			First
Income statement data
In thousands, except per share
Net income
Net income	$	241,613			277,549			275,344			284,336			229,017
Amortization of core deposit and other intangible assets (a)		4,163			4,380			4,494			5,638			6,145
Net operating income	$	245,776			281,929			279,838			289,974			235,162
Earnings per common share
Diluted earnings per common share	$	1.65			1.92			1.91			1.98			1.61
Amortization of core deposit and other intangible assets (a)		.03			.03			.03			.04			.05
Diluted net operating earnings per common share	$	1.68			1.95			1.94			2.02			1.66
Other expense
Other expense	$	686,375			666,221			665,359			667,660			690,234
Amortization of core deposit and other intangible assets		(6,793	)		(7,170	)		(7,358	)		(9,234	)		(10,062	)
Noninterest operating expense	$	679,582			659,051			658,001			658,426			680,172
Efficiency ratio
Noninterest operating expense (numerator)	$	679,582			659,051			658,001			658,426			680,172
Taxable-equivalent net interest income		665,426			687,847			674,900			674,963			662,378
Other income		440,203			451,643			451,111			456,412			420,107
Less: Loss on bank investment securities		(98	)		—			—			—			—
Denominator	$	1,105,727			1,139,490			1,126,011			1,131,375			1,082,485
Efficiency ratio		61.46	%		57.84	%		58.44	%		58.20	%		62.83	%
Balance sheet data
In millions
Average assets
Average assets	$	95,892			98,644			93,245			89,873			86,665
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(31	)		(38	)		(45	)		(53	)		(64	)
Deferred taxes		10			12			14			16			20
Average tangible assets	$	92,346			95,093			89,689			86,311			83,096
Average common equity
Average total equity	$	12,459			12,442			12,247			12,039			11,648
Preferred stock		(1,232	)		(1,231	)		(1,232	)		(1,231	)		(1,072	)
Average common equity		11,227			11,211			11,015			10,808			10,576
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(31	)		(38	)		(45	)		(53	)		(64	)
Deferred taxes		10			12			14			16			20
Average tangible common equity	$	7,681			7,660			7,459			7,246			7,007
At end of quarter
Total assets
Total assets	$	98,378			96,686			97,228			90,835			88,530
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(28	)		(35	)		(42	)		(49	)		(59	)
Deferred taxes		9			11			13			15			19
Total tangible assets	$	94,834			93,137			93,674			87,276			84,965
Total common equity
Total equity	$	12,528			12,336			12,333			12,169			11,887
Preferred stock		(1,232	)		(1,231	)		(1,232	)		(1,232	)		(1,232	)
Undeclared dividends - cumulative preferred stock		(2	)		(3	)		(2	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		11,294			11,102			11,099			10,934			10,652
Goodwill		(3,525	)		(3,525	)		(3,525	)		(3,525	)		(3,525	)
Core deposit and other intangible assets		(28	)		(35	)		(42	)		(49	)		(59	)
Deferred taxes		9			11			13			15			19
Total tangible common equity	$	7,750			7,553			7,545			7,375			7,087

(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

	2015 First Quarter								2014 Fourth Quarter								2014 Third 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.	$	19,457		$	153,866		3.21	%		19,117			156,627		3.25	%		18,889			156,440		3.29	%
Real estate - commercial		27,596			288,121		4.18			27,064			293,283		4.24			26,487			283,476		4.19
Real estate - consumer		8,572			88,850		4.15			8,654			90,637		4.19			8,634			90,023		4.17
Consumer		10,962			121,366		4.49			10,932			123,681		4.49			10,753			122,408		4.52
Total loans and leases, net		66,587			652,203		3.97			65,767			664,228		4.01			64,763			652,347		4.00
Interest-bearing deposits at banks		5,073			3,118		.25			9,054			5,744		.25			5,083			3,198		.25
Federal funds sold and agreements to resell securities		97			24		.10			86			18		.08			80			14		.07
Trading account		79			565		2.87			80			353		1.76			70			287		1.65
Investment securities**
U.S. Treasury and federal agencies		12,437			78,313		2.55			12,032			82,843		2.73			11,817			82,475		2.77
Obligations of states and political subdivisions		159			1,967		5.04			160			1,963		4.86			162			1,897		4.65
Other		780			7,735		4.02			786			7,470		3.77			801			8,646		4.28
Total investment securities		13,376			88,015		2.67			12,978			92,276		2.82			12,780			93,018		2.89
Total earning assets		85,212			743,925		3.54			87,965			762,619		3.44			82,776			748,864		3.59
Allowance for credit losses		(925	)							(924	)							(924	)
Cash and due from banks		1,221								1,290								1,273
Other assets		10,384								10,313								10,120
Total assets	$	95,892								98,644								93,245
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
NOW accounts	$	1,121			311		.11			1,083			383		.14			1,037			394		.15
Savings deposits		41,525			10,219		.10			42,949			11,151		.10			41,056			11,532		.11
Time deposits		3,017			3,740		.50			3,128			3,915		.50			3,227			3,805		.47
Deposits at Cayman Islands office		224			147		.27			265			149		.22			325			161		.20
Total interest-bearing deposits		45,887			14,417		.13			47,425			15,598		.13			45,645			15,892		.14
Short-term borrowings		196			34		.07			195			25		.05			181			19		.04
Long-term borrowings		9,835			64,048		2.64			8,954			59,149		2.62			8,547			58,053		2.69
Total interest-bearing liabilities		55,918			78,499		.57			56,574			74,772		.52			54,373			73,964		.54
Noninterest-bearing deposits		25,811								28,090								25,127
Other liabilities		1,704								1,538								1,498
Total liabilities		83,433								86,202								80,998
Shareholders’ equity		12,459								12,442								12,247
Total liabilities and shareholders’ equity	$	95,892								98,644								93,245
Net interest spread							2.97								2.92								3.05
Contribution of interest-free funds							.20								.18								.18
Net interest income/margin on earning assets				$	665,426		3.17	%					687,847		3.10	%					674,900		3.23	%

*       Includes nonaccrual loans.	(continued)
**     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)

	2014 Second Quarter								2014 First 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.	$	18,978		$	157,891		3.34	%		18,476			153,529		3.37	%
Real estate - commercial		26,140			278,596		4.22			26,143			287,584		4.40
Real estate - consumer		8,746			95,439		4.36			8,844			92,533		4.19
Consumer		10,479			118,157		4.52			10,300			116,631		4.59
Total loans and leases, net		64,343			650,083		4.05			63,763			650,277		4.14
Interest-bearing deposits at banks		4,080			2,535		.25			3,089			1,884		.25
Federal funds sold and agreements to resell securities		90			16		.07			100			16		.07
Trading account		84			264		1.25			71			477		2.68
Investment securities**
U.S. Treasury and federal agencies		9,984			74,046		2.97			8,286			64,814		3.17
Obligations of states and political subdivisions		166			1,986		4.82			177			2,269		5.20
Other		809			11,209		5.56			802			9,160		4.63
Total investment securities		10,959			87,241		3.19			9,265			76,243		3.34
Total earning assets		79,556			740,139		3.73			76,288			728,897		3.87
Allowance for credit losses		(922	)							(923	)
Cash and due from banks		1,224								1,322
Other assets		10,015								9,978
Total assets	$	89,873								86,665
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
NOW accounts	$	1,026			330		.13			988			297		.12
Savings deposits		39,478			11,181		.11			38,358			11,601		.12
Time deposits		3,350			3,855		.46			3,460			3,940		.46
Deposits at Cayman Islands office		339			181		.21			380			208		.22
Total interest-bearing deposits		44,193			15,547		.14			43,186			16,046		.15
Short-term borrowings		220			25		.05			264			32		.05
Long-term borrowings		6,525			49,604		3.05			5,897			50,441		3.47
Total interest-bearing liabilities		50,938			65,176		.51			49,347			66,519		.55
Noninterest-bearing deposits		25,466								24,141
Other liabilities		1,430								1,529
Total liabilities		77,834								75,017
Shareholders’ equity		12,039								11,648
Total liabilities and shareholders’ equity	$	89,873								86,665
Net interest spread							3.22								3.32
Contribution of interest-free funds							.18								.20
Net interest income/margin on earning assets				$	674,963		3.40	%					662,378		3.52	%

* Includes nonaccrual loans.

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

- 90 -

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 March 31, 2015.

(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 March 31, 2015 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 further 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.

DOJ Investigation: Prior to M&T’s acquisition of Wilmington Trust, the Department of Justice (“DOJ”) 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.

- 91 -

This investigation 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. The Court issued an order denying Wilmington Trust’s motion to dismiss on March 20, 2014. The parties are currently engaged in the discovery phase of the lawsuit.

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, losses from current litigation and regulatory matters which the Company is subject to that are 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, 2014.

- 92 -

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)
January 1 – January 31, 2015		173,268	$	113.81		—		2,181,500
February 1 – February 28, 2015		1,029		120.54		—		2,181,500
March 1 – March 31, 2015		1,636		125.64		—		2,181,500
Total		175,933	$	113.96		—

(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.)

- 93 -

Item 6. Exhibits.

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

Exhibit No.
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.

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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: May 8, 2015	By:	/s/ René F. Jones
		René F. Jones
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.
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.

- 95 -

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: May 8, 2015

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: May 8, 2015

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 March 31, 2015 (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

May 8, 2015

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 March 31, 2015 (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

May 8, 2015

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 - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt securities available for sale:
Due in one year or less	$ 9,059
Due after one year through five years	163,114
Due after five years through ten years	3,272
Due after ten years	162,001
Total available for sale (amortized cost)	337,446
Mortgage-backed securities available for sale	10,008,287
Total	10,345,733
Debt securities held to maturity:
Due in one year or less	27,663
Due after one year through five years	87,320
Due after five years through ten years	33,715
Due after ten years	7,185
Total available for held to maturity (amortized cost)	155,883
Mortgage-backed securities held to maturity	3,204,929
Amortized cost for held to maturity	3,360,812	3,507,868
Debt securities available for sale:
Due in one year or less	9,117
Due after one year through five years	165,027
Due after five years through ten years	3,314
Due after ten years	162,177
Total available for sale (fair value)	339,635
Mortgage-backed securities available for sale	10,265,316
Total	10,604,951
Debt securities held to maturity:
Due in one year or less	27,865
Due after one year through five years	88,357
Due after five years through ten years	34,304
Due after ten years	7,185
Total available for held to maturity (fair value)	157,711
Mortgage-backed securities held to maturity	3,254,123
Total	$ 3,411,834	$ 3,538,282

XML

Shareholders' Equity - Issued and Outstanding Preferred Stock (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Carrying value	$ 1,231,500	$ 1,231,500
Series D Fixed Rate Non-cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	50,000	50,000
Preferred stock, shares outstanding	500,000	50,000
Carrying value	500,000	50,000
Series E Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	350,000	350,000
Preferred stock, shares outstanding	350,000	350,000
Carrying value	350,000	350,000
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	230,000	230,000
Preferred stock, shares outstanding	230,000	230,000
Carrying value	230,000	230,000
Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares issued	151,500	151,500
Preferred stock, shares outstanding	151,500	151,500
Carrying value	$ 151,500	$ 151,500

XML

Loans and leases and the allowance for credit losses - Summary of Loan Grades (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 67,099,042	$ 66,668,956
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,775,494	19,461,292
Commercial, Financial, Leasing, etc. [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	18,880,311	18,695,440
Commercial, Financial, Leasing, etc. [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	699,780	588,407
Commercial, Financial, Leasing, etc. [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	195,403	177,445
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	22,573,760	22,556,939
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	21,755,661	21,837,022
Commercial [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	676,092	578,317
Commercial [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	142,007	141,600
Residential Builder and Developer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,631,202	1,465,140
Residential Builder and Developer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,522,471	1,347,778
Residential Builder and Developer [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	43,421	45,845
Residential Builder and Developer [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	65,310	71,517
Other Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	3,640,748	3,545,490
Other Commercial Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	3,466,705	3,347,522
Other Commercial Construction [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	149,763	172,269
Other Commercial Construction [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 24,280	$ 25,699

XML

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
	Mar. 31, 2015	Mar. 31, 2014
Other Assets and Other Liabilities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 17,347	$ 3,941
Total gains (losses) realized/unrealized:
Included in earnings	29,770	22,383
Transfers in and/or out of Level 3	(20,887)	(13,735)
Ending Balance	26,230	12,589
Changes in unrealized gains (losses) included in earnings related to assets still held at end of period	22,636	15,050
Privately Issued [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	103	1,850
Total gains (losses) realized/unrealized:
Included in other comprehensive income		67
Settlements	(8)	(1,221)
Ending Balance	95	696
Collateralized Debt Obligations [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	50,316	63,083
Total gains (losses) realized/unrealized:
Included in other comprehensive income	(2,004)	4,646
Settlements	(1,034)	(5,961)
Ending Balance	$ 47,278	$ 61,768

XML

Shareholders' Equity - Issued and Outstanding Preferred Stock (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Series D Fixed Rate Non-cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Liquidation preference	$ 10,000	$ 10,000
Preferred stock dividend rate	6.875%
Preferred Stock, Redemption Feature, Redemption Term	90 days
Preferred shares redemption date	Jun. 15, 2016
Series D Fixed Rate Non-cumulative Perpetual Preferred Stock [Member] | Warrant [Member]
Class of Stock [Line Items]
Exercise price of each class of warrants or rights outstanding	$ 518.96	$ 518.96
Series E Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Liquidation preference	$ 1,000	$ 1,000
Preferred stock dividend rate	6.45%
Preferred Stock, Redemption Feature, Redemption Term	90 days
Preferred shares redemption date	Feb. 15, 2024
Date of change in the dividend rate	Feb. 14, 2024
London Interbank offered rate plus basis points	3.61%
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Liquidation preference	$ 1,000	$ 1,000
Exercise price of each class of warrants or rights outstanding	$ 73.86
Preferred stock dividend rate	6.375%
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member] | Warrant [Member]
Class of Stock [Line Items]
Warrants and rights outstanding	719,175	721,490
Warrants, year of expiration	2018
Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Liquidation preference	$ 1,000	$ 1,000

XML

Segment Information - Summary of Segment Information (Parenthetical) (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting [Abstract]
Taxable-equivalent adjustment	$ 5,838,000	$ 5,945,000

XML

Loans and Leases and the Allowance for Credit Losses - Impaired Loans and Leases (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	$ 470,539	$ 498,575
Unpaid Principal Balance With Related Allowance	549,137	581,887
Related Allowance	70,582	82,643
Recorded Investment With No Related Allowance	292,315	263,880
Unpaid Principal Balance With No Related Allowance	408,326	371,907
Recorded Investment	762,854	762,455
Unpaid Principal Balance	957,463	953,794
Related Allowance	70,582	82,643
Commercial, Financial, Leasing, etc. [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	108,870	132,340
Unpaid Principal Balance With Related Allowance	130,029	165,146
Related Allowance	19,335	31,779
Recorded Investment With No Related Allowance	116,325	73,978
Unpaid Principal Balance With No Related Allowance	135,534	81,493
Recorded Investment	225,195	206,318
Unpaid Principal Balance	265,563	246,639
Related Allowance	19,335	31,779
Commercial Real Estate [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	99,729	83,955
Unpaid Principal Balance With Related Allowance	122,098	96,209
Related Allowance	15,836	14,121
Recorded Investment With No Related Allowance	51,734	66,777
Unpaid Principal Balance With No Related Allowance	59,235	78,943
Recorded Investment	151,463	150,732
Unpaid Principal Balance	181,333	175,152
Related Allowance	15,836	14,121
Residential Builder and Developer [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	6,512	17,632
Unpaid Principal Balance With Related Allowance	8,731	22,044
Related Allowance	591	805
Recorded Investment With No Related Allowance	62,611	58,820
Unpaid Principal Balance With No Related Allowance	101,964	96,722
Recorded Investment	69,123	76,452
Unpaid Principal Balance	110,695	118,766
Related Allowance	591	805
Other Commercial Construction [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	5,116	5,480
Unpaid Principal Balance With Related Allowance	6,084	6,484
Related Allowance	831	900
Recorded Investment With No Related Allowance	19,657	20,738
Unpaid Principal Balance With No Related Allowance	40,072	41,035
Recorded Investment	24,773	26,218
Unpaid Principal Balance	46,156	47,519
Related Allowance	831	900
Residential [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	86,691	88,970
Unpaid Principal Balance With Related Allowance	104,630	107,343
Related Allowance	4,405	4,296
Recorded Investment With No Related Allowance	17,203	16,815
Unpaid Principal Balance With No Related Allowance	27,886	26,750
Recorded Investment	103,894	105,785
Unpaid Principal Balance	132,516	134,093
Related Allowance	4,405	4,296
Residential Alt-A [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	97,984	101,137
Unpaid Principal Balance With Related Allowance	110,835	114,565
Related Allowance	11,000	11,000
Recorded Investment With No Related Allowance	24,785	26,752
Unpaid Principal Balance With No Related Allowance	43,635	46,964
Recorded Investment	122,769	127,889
Unpaid Principal Balance	154,470	161,529
Related Allowance	11,000	11,000
Home Equity Lines and Loans [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	19,701	19,771
Unpaid Principal Balance With Related Allowance	20,794	20,806
Related Allowance	6,304	6,213
Recorded Investment	19,701	19,771
Unpaid Principal Balance	20,794	20,806
Related Allowance	6,304	6,213
Automobile [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	27,122	30,317
Unpaid Principal Balance With Related Allowance	27,122	30,317
Related Allowance	6,983	8,070
Recorded Investment	27,122	30,317
Unpaid Principal Balance	27,122	30,317
Related Allowance	6,983	8,070
Other [Member]
Schedule Of Financial Receivables [Line Items]
Recorded Investment With Related Allowance	18,814	18,973
Unpaid Principal Balance With Related Allowance	18,814	18,973
Related Allowance	5,297	5,459
Recorded Investment	18,814	18,973
Unpaid Principal Balance	18,814	18,973
Related Allowance	$ 5,297	$ 5,459

XML

Commitments and contingencies (Tables)

3 Months Ended

Mar. 31, 2015

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.

	March 31, 2015		December 31, 2014
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,219,783		6,194,516
Commercial real estate loans to be sold		346,664		212,257
Other commercial real estate and construction		5,161,878		4,834,699
Residential real estate loans to be sold		661,132		432,352
Other residential real estate		581,384		524,399
Commercial and other		11,493,613		11,080,856
Standby letters of credit		3,648,095		3,706,888
Commercial letters of credit		42,291		46,965
Financial guarantees and indemnification contracts		2,535,609		2,490,050
Commitments to sell real estate loans		1,322,998		1,237,294

XML

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Bayview Lending Group and Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Outstanding principal balances of mortgage servicing rights	$ 4,600,000,000		$ 4,800,000,000
Revenues from servicing	6,000,000	7,000,000
Bayview Lending Group [Member]
Schedule of Equity Method Investments [Line Items]
Minority interest in Bayview Lending Group LLC	20.00%
Carrying value of minority interest investment in Bayview Lending Group LLC	43,000,000
Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Revenues from servicing	35,000,000	26,000,000
Outstanding principal balances of residential mortgage loans from Bayview Financial	39,500,000,000		41,300,000,000
Investment securities in held-to-maturity portfolio securitized by Bayview Financial	$ 198,000,000		$ 202,000,000

XML

Commitments and Contingencies - Company's Significant Commitments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Commitments to extend credit
Home equity lines of credit	$ 6,219,783	$ 6,194,516
Commercial real estate loans to be sold	346,664	212,257
Other commercial real estate and construction	5,161,878	4,834,699
Residential real estate loans to be sold	661,132	432,352
Other residential real estate	581,384	524,399
Commercial and other	11,493,613	11,080,856
Standby letters of credit	3,648,095	3,706,888
Commercial letters of credit	42,291	46,965
Financial guarantees and indemnification contracts	2,535,609	2,490,050
Commitments to sell real estate loans	$ 1,322,998	$ 1,237,294

XML

Pension Plans and Other Postretirement Benefits - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Defined contribution pension and retirement savings plans total expense	$ 16,750,000	$ 15,732,000

XML

Segment Information - Information about Company's Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Net income (loss)	$ 241,613	$ 229,017
Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	24,811	24,973
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	96,423	98,841
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)	80,086	72,552
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)	5,954	11,360
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	31,965	18,580
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	68,888	69,034
All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)	(66,514)	(66,323)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenues	1,099,791	1,076,540
Operating Segments [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	108,560	111,770
Operating Segments [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	246,581	249,349
Operating Segments [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Total revenues	163,320	157,323
Operating Segments [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Total revenues	15,474	24,657
Operating Segments [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	111,458	93,765
Operating Segments [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	300,391	306,780
Operating Segments [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Total revenues	154,007	132,896
Intersegment Activity Eliminated in Consolidated Totals [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	1,045	1,057
Intersegment Activity Eliminated in Consolidated Totals [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	1,085	1,197
Intersegment Activity Eliminated in Consolidated Totals [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Total revenues	82	348
Intersegment Activity Eliminated in Consolidated Totals [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Total revenues	(5,443)	(5,039)
Intersegment Activity Eliminated in Consolidated Totals [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	11,387	9,748
Intersegment Activity Eliminated in Consolidated Totals [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Total revenues	3,137	3,505
Intersegment Activity Eliminated in Consolidated Totals [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Total revenues	$ (11,293)	$ (10,816)

XML

Segment Information - Summary of Segment Information (Detail) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Sales Information [Line Items]
Average Assets	$ 95,892	$ 92,143	$ 86,665
Business Banking [Member]
Sales Information [Line Items]
Average Assets	5,300	5,281	5,242
Commercial Banking [Member]
Sales Information [Line Items]
Average Assets	23,683	22,892	22,523
Commercial Real Estate [Member]
Sales Information [Line Items]
Average Assets	18,019	17,113	16,937
Discretionary Portfolio [Member]
Sales Information [Line Items]
Average Assets	22,714	20,798	18,581
Residential Mortgage Banking [Member]
Sales Information [Line Items]
Average Assets	3,512	3,333	3,157
Retail Banking [Member]
Sales Information [Line Items]
Average Assets	10,788	10,449	10,155
All Other [Member]
Sales Information [Line Items]
Average Assets	$ 11,876	$ 12,277	$ 10,070

XML

Fair Value Measurements - Quantitative Information Related to Significant Unobservable Inputs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Privately Issued [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	$ 95	$ 103	$ 696	$ 1,850
Collateralized Debt Obligations [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	47,278	50,316	61,768	63,083
Other Assets and Other Liabilities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	26,230	17,347	12,589	3,941
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	47,278	50,316
Loss severity	100.00%	100.00%
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	45.00%	36.00%
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	12.00%	12.00%
Discounted Cash Flows [Member] | Collateralized Debt Obligations [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Probability of default	57.00%	57.00%
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	26,230	17,347
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	19.00%	17.00%
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	0.00%	0.00%
Discounted Cash Flows [Member] | Other Assets and Other Liabilities [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Commitment expirations	96.00%	96.00%
Two Independent Pricing Quotes [Member] | Privately Issued [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value	$ 95	$ 103

XML

Investment securities (Tables)

3 Months Ended

Mar. 31, 2015

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)
March 31, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,672		1,563		1	$	163,234
Obligations of states and political subdivisions		7,704		199		53		7,850
Mortgage-backed securities:
Government issued or guaranteed		10,008,191		265,739		8,709		10,265,221
Privately issued		96		2		3		95
Collateralized debt obligations		29,704		19,360		1,786		47,278
Other debt securities		138,366		1,909		19,002		121,273
Equity securities		79,987		18,999		437		98,549
		10,425,720		307,771		29,991		10,703,500
Investment securities held to maturity:
Obligations of states and political subdivisions		148,698		2,178		350		150,526
Mortgage-backed securities:
Government issued or guaranteed		3,007,420		88,417		4,024		3,091,813
Privately issued		197,509		1,421		36,620		162,310
Other debt securities		7,185		—		—		7,185
		3,360,812		92,016		40,994		3,411,834
Other securities		328,958		—		—		328,958
Total	$	14,115,490		399,787		70,985	$	14,444,292
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,408		544		5	$	161,947
Obligations of states and political subdivisions		8,027		224		53		8,198
Mortgage-backed securities:
Government issued or guaranteed		8,507,571		223,889		337		8,731,123
Privately issued		104		2		3		103
Collateralized debt obligations		30,073		21,276		1,033		50,316
Other debt securities		138,240		1,896		18,648		121,488
Equity securities		73,901		11,020		1,164		83,757
		8,919,324		258,851		21,243		9,156,932
Investment securities held to maturity:
Obligations of states and political subdivisions		148,961		2,551		189		151,323
Mortgage-backed securities:
Government issued or guaranteed		3,149,320		78,485		7,000		3,220,805
Privately issued		201,733		1,143		44,576		158,300
Other debt securities		7,854		—		—		7,854
		3,507,868		82,179		51,765		3,538,282
Other securities		328,742		—		—		328,742
Total	$	12,755,934		341,030		73,008	$	13,023,956

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

At March 31, 2015, 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	$	9,059		9,117
Due after one year through five years		163,114		165,027
Due after five years through ten years		3,272		3,314
Due after ten years		162,001		162,177
		337,446		339,635
Mortgage-backed securities available for sale		10,008,287		10,265,316
	$	10,345,733		10,604,951
Debt securities held to maturity:
Due in one year or less	$	27,663		27,865
Due after one year through five years		87,320		88,357
Due after five years through ten years		33,715		34,304
Due after ten years		7,185		7,185
		155,883		157,711
Mortgage-backed securities held to maturity		3,204,929		3,254,123
	$	3,360,812		3,411,834

Investment Securities in Continuous Unrealized Loss Position

A summary of investment securities that as of March 31, 2015 and December 31, 2014 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)
March 31, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	4,681		(1	)		—		—
Obligations of states and political subdivisions		986		(4	)		1,524		(49	)
Mortgage-backed securities:
Government issued or guaranteed		1,603,068		(8,597	)		4,138		(112	)
Privately issued		—		—			59		(3	)
Collateralized debt obligations		6,091		(1,255	)		5,220		(531	)
Other debt securities		12,689		(443	)		92,304		(18,559	)
Equity securities		374		(437	)		—		—
		1,627,889		(10,737	)		103,245		(19,254	)
Investment securities held to maturity:
Obligations of states and political subdivisions		35,272		(317	)		1,802		(33	)
Mortgage-backed securities:
Government issued or guaranteed		16,660		(85	)		266,979		(3,939	)
Privately issued		—		—			131,779		(36,620	)
		51,932		(402	)		400,560		(40,592	)
Total	$	1,679,821		(11,139	)		503,805		(59,846	)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	6,505		(5	)		—		—
Obligations of states and political subdivisions		1,785		(52	)		121		(1	)
Mortgage-backed securities:
Government issued or guaranteed		39,001		(186	)		5,555		(151	)
Privately issued		—		—			65		(3	)
Collateralized debt obligations		2,108		(696	)		5,512		(337	)
Other debt securities		14,017		(556	)		92,661		(18,092	)
Equity securities		2,138		(1,164	)		—		—
		65,554		(2,659	)		103,914		(18,584	)
Investment securities held to maturity:
Obligations of states and political subdivisions		29,886		(184	)		268		(5	)
Mortgage-backed securities:
Government issued or guaranteed		137,413		(361	)		446,780		(6,639	)
Privately issued		—		—			127,512		(44,576	)
		167,299		(545	)		574,560		(51,220	)
Total	$	232,853		(3,204	)		678,474		(69,804	)

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	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 67,099,042	$ 66,668,956
Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	760,536	760,124
Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	66,154,488	65,711,095
Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	184,018	197,737
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,775,494	19,461,292
Commercial, Financial, Leasing, etc. [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	225,195	206,318
Commercial, Financial, Leasing, etc. [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	19,540,575	19,244,674
Commercial, Financial, Leasing, etc. [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	9,724	10,300
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	27,845,710	27,567,569
Commercial Real Estate [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	244,340	252,347
Commercial Real Estate [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	27,446,718	27,148,382
Commercial Real Estate [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	154,652	166,840
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	8,504,119	8,657,301
Residential Real Estate [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	225,364	232,398
Residential Real Estate [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	8,261,472	8,406,680
Residential Real Estate [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	17,283	18,223
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	10,973,719	10,982,794
Consumer Loans [Member] | Individually Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	65,637	69,061
Consumer Loans [Member] | Collectively Evaluated for Impairment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	10,905,723	10,911,359
Consumer Loans [Member] | Purchased Impaired [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 2,359	$ 2,374

XML

Loans and Leases and the Allowance for Credit Losses - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual principal and interest payments	$ 184	$ 198
Purchased impaired loans as a percentage of total assets	Less than 1%
Commercial mortgage loans held for sale	117	308
Loan delinquent period	90 days
Delinquency period for loan level collectability analysis consumer mortgage	More than 150 days
Amount of foreclosed residential real estate property held	42	44
Loans secured by residential real estate that were in the process of foreclosure	158
Residential Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for sale	423	435
Residential Mortgage Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans for which partial charge-off has been recognized	62	63
Mortgage loans, customer balance outstanding	24	27
Home Equity Loans and Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Carrying value of loans for which partial charge-off has been recognized	20	18
Mortgage loans, customer balance outstanding	$ 29	$ 28

XML

Segment Information - Summary of prior period financial information restated (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Net income (loss)	$ 241,613	$ 229,017
Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	24,811	24,973
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	96,423	98,841
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)	80,086	72,552
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)	5,954	11,360
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	31,965	18,580
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)	68,888	69,034
All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)		(66,323)
Net income (loss) as previously reported [Member]
Segment Reporting Information [Line Items]
Net income (loss)		229,017
Net income (loss) as previously reported [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		28,598
Net income (loss) as previously reported [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		99,765
Net income (loss) as previously reported [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)		74,561
Net income (loss) as previously reported [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)		11,279
Net income (loss) as previously reported [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		19,411
Net income (loss) as previously reported [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		29,711
Net income (loss) as previously reported [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)		(34,308)
Impact of changes [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		(3,625)
Impact of changes [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		(924)
Impact of changes [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income (loss)		(2,009)
Impact of changes [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income (loss)		81
Impact of changes [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		(831)
Impact of changes [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income (loss)		39,323
Impact of changes [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Net income (loss)		$ (32,015)

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Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Other securities, Amortized cost	$ 328,958	$ 328,742
Other securities, Gross unrealized gains	0	0
Other securities, Gross unrealized losses	0	0
Other securities, Estimated fair value	328,958	328,742
Investment securities, available for sale, amortized cost	10,425,720	8,919,324
Investment securities available for sale, gross unrealized gains	307,771	258,851
Investment securities available for sale, gross unrealized losses	29,991	21,243
Investment securities available for sale, estimated fair value	10,703,500	9,156,932
Amortized cost for held to maturity	3,360,812	3,507,868
Gross unrealized gains for held to maturity	92,016	82,179
Gross unrealized losses for held to maturity	40,994	51,765
Estimated fair value for held to maturity	3,411,834	3,538,282
Total Amortized cost	14,115,490	12,755,934
Total for Gross unrealized gains	399,787	341,030
Total for Gross unrealized losses	70,985	73,008
Total for Estimated fair value	14,444,292	13,023,956
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	7,704	8,027
Investment securities available for sale, gross unrealized gains	199	224
Investment securities available for sale, gross unrealized losses	53	53
Investment securities available for sale, estimated fair value	7,850	8,198
Amortized cost for held to maturity	148,698	148,961
Gross unrealized gains for held to maturity	2,178	2,551
Gross unrealized losses for held to maturity	350	189
Estimated fair value for held to maturity	150,526	151,323
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	10,008,191	8,507,571
Investment securities available for sale, gross unrealized gains	265,739	223,889
Investment securities available for sale, gross unrealized losses	8,709	337
Investment securities available for sale, estimated fair value	10,265,221	8,731,123
Amortized cost for held to maturity	3,007,420	3,149,320
Gross unrealized gains for held to maturity	88,417	78,485
Gross unrealized losses for held to maturity	4,024	7,000
Estimated fair value for held to maturity	3,091,813	3,220,805
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	96	104
Investment securities available for sale, gross unrealized gains	2	2
Investment securities available for sale, gross unrealized losses	3	3
Investment securities available for sale, estimated fair value	95	103
Amortized cost for held to maturity	197,509	201,733
Gross unrealized gains for held to maturity	1,421	1,143
Gross unrealized losses for held to maturity	36,620	44,576
Estimated fair value for held to maturity	162,310	158,300
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	138,366	138,240
Investment securities available for sale, gross unrealized gains	1,909	1,896
Investment securities available for sale, gross unrealized losses	19,002	18,648
Investment securities available for sale, estimated fair value	121,273	121,488
Amortized cost for held to maturity	7,185	7,854
Estimated fair value for held to maturity	7,185	7,854
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	161,672	161,408
Investment securities available for sale, gross unrealized gains	1,563	544
Investment securities available for sale, gross unrealized losses	1	5
Investment securities available for sale, estimated fair value	163,234	161,947
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	29,704	30,073
Investment securities available for sale, gross unrealized gains	19,360	21,276
Investment securities available for sale, gross unrealized losses	1,786	1,033
Investment securities available for sale, estimated fair value	47,278	50,316
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities, available for sale, amortized cost	79,987	73,901
Investment securities available for sale, gross unrealized gains	18,999	11,020
Investment securities available for sale, gross unrealized losses	437	1,164
Investment securities available for sale, estimated fair value	$ 98,549	$ 83,757

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Borrowings - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Feb. 27, 2014	Feb. 28, 2015
Schedule Of Borrowings [Line Items]
Junior subordinated debentures	$ 836,000,000
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	1,500,000,000
Senior Notes Due Two Thousand Twenty [Member]
Schedule Of Borrowings [Line Items]
Interest rate of debt instrument				2.10%
Fixed rate senior notes issued				750,000,000
Senior Notes Due Two Thousand Twenty Five [Member]
Schedule Of Borrowings [Line Items]
Interest rate of debt instrument				2.90%
Fixed rate senior notes issued				750,000,000
Senior Notes [Member]
Schedule Of Borrowings [Line Items]
Fixed rate senior notes issued				1,500,000,000
Junior Subordinated Debt [Member]
Schedule Of Borrowings [Line Items]
Junior subordinated debentures redeemed	323,000,000
Trust Preferred Securities Subject to Mandatory Redemption [Member]
Schedule Of Borrowings [Line Items]
Junior subordinated debentures			350,000,000

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Variable Interest Entities and Asset Securitizations - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Variable Interest Entity Disclosure [Abstract]
Carrying value of loans in the Securitization trusts	$ 93,000,000		$ 98,000,000
Combined outstanding principal amount of mortgage-backed securities issued by qualified special purpose trust held by unrelated parties	14,000,000		15,000,000
Residential mortgage loans securitized with Ginnie Mae	13,000,000	29,000,000
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	1,200,000,000		1,200,000,000
Maximum exposure to loss of investments in real estate partnerships	303,000,000		243,000,000
Unfunded commitments included in company's maximum exposure to loss of investments in real estate partnerships	88,000,000		56,000,000
Investments amortized to income tax expense	10,000,000	12,000,000
Tax credits and other tax benefits recognized	$ 14,000,000	$ 17,000,000

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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
	Mar. 31, 2015	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (297,843)	$ (105,797)
Unrealized holding gains, net	40,074	62,087
Foreign currency translation adjustment	(3,732)	(234)
Gains on cash flow hedges	1,453
Total other comprehensive income before reclassifications	37,795	61,853
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities	739	825
Losses realized in net income	98
Accretion of losses on terminated cash flow hedges	(24)
Amortization of prior service credit	(1,875)	(2,000)
Amortization of actuarial losses	11,200	3,350
Total reclassifications	10,138	2,175
Total gain (loss) during the period	47,933	64,028
Ending balance	(249,910)	(41,769)
Beginning balance	116,849	41,638
Unrealized holding gains, net	(15,247)	(24,374)
Foreign currency translation adjustment	1,348	98
Gains on cash flow hedges	(568)
Total other comprehensive income before reclassifications	(14,467)	(24,276)
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities	(289)	(324)
Losses realized in net income	(36)
Accretion of losses on terminated cash flow hedges	10
Amortization of prior service credit	934	785
Amortization of actuarial losses	(5,582)	(1,315)
Total reclassifications	(4,963)	(854)
Total gain (loss) during the period	(19,430)	(25,130)
Ending balance	97,419	16,508
Beginning balance	(180,994)	(64,159)
Unrealized holding gains, net	24,827	37,713
Foreign currency translation adjustment	(2,384)	(136)
Gains on cash flow hedges	885
Total other comprehensive income before reclassifications	23,328	37,577
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities	450	501
Losses realized in net income	62
Accretion of gain on terminated cash flow hedges	(14)
Amortization of prior service credit	(941)	(1,215)
Amortization of actuarial losses	5,618	2,035
Total reclassifications	5,175	1,321
Total gain (loss) during the period	28,503	38,898
Ending balance	(152,491)	(25,261)
Investment Securities With OTTI [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	7,438	37,255
Unrealized holding gains, net	8,011	19,968
Total other comprehensive income before reclassifications	8,011	19,968
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities		2
Total reclassifications		2
Total gain (loss) during the period	8,011	19,970
Ending balance	15,449	57,225
Investment Securities All Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	201,828	18,450
Unrealized holding gains, net	32,063	42,119
Total other comprehensive income before reclassifications	32,063	42,119
Accretion of unrealized holding losses on held-to-maturity ("HTM") securities	739	823
Losses realized in net income	98
Total reclassifications	837	823
Total gain (loss) during the period	32,900	42,942
Ending balance	234,728	61,392
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(503,027)	(161,617)
Amortization of prior service credit	(1,875)	(2,000)
Amortization of actuarial losses	11,200	3,350
Total reclassifications	9,325	1,350
Total gain (loss) during the period	9,325	1,350
Ending balance	(493,702)	(160,267)
Beginning balance	(305,589)
Total gain (loss) during the period	4,677
Ending balance	(300,912)
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(4,082)	115
Foreign currency translation adjustment	(3,732)	(234)
Gains on cash flow hedges	1,453
Total other comprehensive income before reclassifications	(2,279)	(234)
Accretion of losses on terminated cash flow hedges	(24)
Total reclassifications	(24)
Total gain (loss) during the period	(2,303)	(234)
Ending balance	$ (6,385)	$ (119)

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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
	Mar. 31, 2015	Mar. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	$ 764,080	$ 894,854
Interest Income Recognized, Total	5,705	6,581
Interest Income Recognized, Cash Basis	3,516	4,264
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	214,618	134,306
Interest Income Recognized, Total	604	548
Interest Income Recognized, Cash Basis	604	548
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	153,070	185,425
Interest Income Recognized, Total	1,102	926
Interest Income Recognized, Cash Basis	1,102	926
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	73,151	101,253
Interest Income Recognized, Total	63	74
Interest Income Recognized, Cash Basis	63	74
Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	25,540	87,292
Interest Income Recognized, Total	55	1,087
Interest Income Recognized, Cash Basis	55	1,087
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	104,490	174,168
Interest Income Recognized, Total	1,446	1,400
Interest Income Recognized, Cash Basis	910	902
Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	125,654	139,651
Interest Income Recognized, Total	1,610	1,626
Interest Income Recognized, Cash Basis	647	559
Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	19,683	15,676
Interest Income Recognized, Total	201	121
Interest Income Recognized, Cash Basis	48	29
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	29,013	39,383
Interest Income Recognized, Total	450	625
Interest Income Recognized, Cash Basis	54	87
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	18,861	17,700
Interest Income Recognized, Total	174	174
Interest Income Recognized, Cash Basis	$ 33	$ 52

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Significant accounting policies

3 Months Ended

Mar. 31, 2015

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 2014 Annual Report. Additionally, effective January 1, 2015 the Company made an accounting policy election in accordance with amended accounting guidance issued by the Financial Accounting Standards Board in January 2014 to account for investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method, the Company 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 adoption of the amended guidance did not have a significant effect on the Company’s financial position or results of operation, but did result in the restatement of the consolidated statement of income for the three-month period ended March 31, 2014 to remove $12 million of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The cumulative effect adjustment associated with adopting the amended guidance was not material as of the beginning of any period presented in these consolidated financial statements. See note 11 for information regarding the Company’s investments in qualified affordable housing projects.

In the opinion of management, all adjustments necessary for a fair presentation have been made and, except as described above, were all of a normal recurring nature.

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Comprehensive Income - Accumulated Other Comprehensive Income (Loss), Net (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (180,994)	$ (64,159)
Net gain (loss) during period	28,503	38,898
Ending balance	(152,491)	(25,261)
Investment Securities With OTTI [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	4,518
Net gain (loss) during period	4,898
Ending balance	9,416
Investment Securities All Other [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	122,683
Net gain (loss) during period	20,441
Ending balance	143,124
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(305,589)
Net gain (loss) during period	4,677
Ending balance	(300,912)
Accumulated Other Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(2,606)
Net gain (loss) during period	(1,513)
Ending balance	$ (4,119)

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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
	Mar. 31, 2015	Mar. 31, 2014
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	$ 473,897	$ 575,863
Interest income	(46,483)	(58,961)
Reclassifications from nonaccretable balance, net	293	37
Other	1,610	(838)
Balance at end of period	429,317	516,101
Purchased Impaired [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	76,518	37,230
Interest income	(5,206)	(6,328)
Reclassifications from nonaccretable balance, net	110	37
Balance at end of period	71,422	30,939
Other [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	397,379	538,633
Interest income	(41,277)	(52,633)
Reclassifications from nonaccretable balance, net	183
Other	1,610	(838)
Balance at end of period	$ 357,895	$ 485,162

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Earnings per common share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Computations of Basic Earnings Per Common Share

The computations of basic earnings per common share follow:

	Three months ended March 31
	2015			2014
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	241,613			229,017
Less: Preferred stock dividends (a)		(20,318	)		(14,674	)
Net income available to common equity		221,295			214,343
Less: Income attributable to unvested stock-based compensation awards		(2,465	)		(2,623	)
Net income available to common shareholders	$	218,830			211,720
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		133,542			131,800
Less: Unvested stock-based compensation awards		(1,493	)		(1,588	)
Weighted-average shares outstanding		132,049			130,212
Basic earnings per common share	$	1.66			1.63

(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 March 31
	2015			2014
	(in thousands, except per share)
Net income available to common equity	$	221,295			214,343
Less: Income attributable to unvested stock-based compensation awards		(2,458	)		(2,612	)
Net income available to common shareholders	$	218,837			211,731
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		133,542			131,800
Less: Unvested stock-based compensation awards		(1,493	)		(1,588	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards		720			914
Adjusted weighted-average shares outstanding		132,769			131,126
Diluted earnings per common share	$	1.65			1.61

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Pension plans and other postretirement benefits (Tables)

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Net Periodic Pension Expense for Defined Benefit Plans

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

	Pension benefits						Other postretirement benefits
	Three months ended March 31
	2015			2014			2015			2014
	(in thousands)
Service cost	$	6,000			5,100			200			150
Interest cost on projected benefit obligation		17,775			17,250			650			675
Expected return on plan assets		(23,575	)		(22,925	)		—			—
Amortization of prior service credit		(1,525	)		(1,650	)		(350	)		(350	)
Amortization of net actuarial loss		11,175			3,350			25			—
Net periodic benefit cost	$	9,850			1,125			525			475

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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
	Mar. 31, 2015	Mar. 31, 2014
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 6,000	$ 5,100
Interest cost on projected benefit obligation	17,775	17,250
Expected return on plan assets	(23,575)	(22,925)
Amortization of prior service cost	(1,525)	(1,650)
Amortization of net actuarial loss	11,175	3,350
Net periodic benefit cost	9,850	1,125
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	200	150
Interest cost on projected benefit obligation	650	675
Amortization of prior service cost	(350)	(350)
Amortization of net actuarial loss	25
Net periodic benefit cost	$ 525	$ 475

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Loans and Leases and the Allowance for Credit Losses - Summary of Current, Past Due and Nonaccrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	$ 65,332,727	$ 64,785,780
30-89 Days past due	474,980	530,901
Purchased impaired	184,018	197,737
Nonaccrual	790,586	799,151
Loans and leases, net of unearned discount	67,099,042	66,668,956
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	19,519,566	19,228,265
30-89 Days past due	43,213	37,246
Purchased impaired	9,724	10,300
Nonaccrual	195,403	177,445
Loans and leases, net of unearned discount	19,775,494	19,461,292
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	22,225,088	22,208,491
30-89 Days past due	116,465	118,704
Purchased impaired	45,752	51,312
Nonaccrual	142,007	141,600
Loans and leases, net of unearned discount	22,573,760	22,556,939
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,460,981	1,273,607
30-89 Days past due	6,119	11,827
Purchased impaired	91,839	98,347
Nonaccrual	65,310	71,517
Loans and leases, net of unearned discount	1,631,202	1,465,140
Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	3,575,578	3,484,932
30-89 Days past due	18,244	17,678
Purchased impaired	17,061	17,181
Nonaccrual	24,280	25,699
Loans and leases, net of unearned discount	3,640,748	3,545,490
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	7,580,514	7,640,368
30-89 Days past due	189,901	226,932
Purchased impaired	17,283	18,223
Nonaccrual	171,496	180,275
Loans and leases, net of unearned discount	8,176,551	8,318,013
Residential Alt-A [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	241,467	249,810
30-89 Days past due	11,831	11,774
Nonaccrual	74,270	77,704
Loans and leases, net of unearned discount	327,568	339,288
Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	5,783,865	5,859,378
30-89 Days past due	35,478	42,945
Purchased impaired	2,359	2,374
Nonaccrual	87,985	89,291
Loans and leases, net of unearned discount	5,922,985	6,021,884
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,024,526	1,931,138
30-89 Days past due	25,322	30,500
Nonaccrual	14,100	17,578
Loans and leases, net of unearned discount	2,063,948	1,979,349
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,921,142	2,909,791
30-89 Days past due	28,407	33,295
Nonaccrual	15,735	18,042
Loans and leases, net of unearned discount	2,986,786	2,981,561
Non-Acquired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	236,621	245,020
Non-Acquired [Member] | Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	4,265	1,805
Non-Acquired [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	27,261	22,170
Non-Acquired [Member] | Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing		492
Non-Acquired [Member] | Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	3,864
Non-Acquired [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	197,299	216,489
Non-Acquired [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	3,932	4,064
Acquired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	80,110	110,367
Acquired [Member] | Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	3,323	6,231
Acquired [Member] | Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	17,187	14,662
Acquired [Member] | Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	6,953	9,350
Acquired [Member] | Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	1,721
Acquired [Member] | Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	20,058	35,726
Acquired [Member] | Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	13,298	27,896
Acquired [Member] | Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing		133
Acquired [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
90 Days or more past due and accruing	$ 17,570	$ 16,369

XML

Comprehensive income (Tables)

3 Months Ended

Mar. 31, 2015

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
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2015	$	7,438		201,828		(503,027	)		(4,082	)	$	(297,843	)		116,849		$	(180,994	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		8,011		32,063		—			—			40,074			(15,247	)		24,827
Foreign currency translation adjustment		—		—		—			(3,732	)		(3,732	)		1,348			(2,384	)
Gains on cash flow hedges		—		—		—			1,453			1,453			(568	)		885
Total other comprehensive income before reclassifications		8,011		32,063		—			(2,279	)		37,795			(14,467	)		23,328
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		—		739		—			—			739	(b)		(289	)		450
Losses realized in net income		—		98		—			—			98	(c)		(36	)		62
Accretion of gain on terminated cash flow hedges		—		—		—			(24	)		(24	) (d)		10			(14	)
Amortization of prior service credit		—		—		(1,875	)		—			(1,875	) (e)		934			(941	)
Amortization of actuarial losses		—		—		11,200			—			11,200	(e)		(5,582	)		5,618
Total reclassifications		—		837		9,325			(24	)		10,138			(4,963	)		5,175
Total gain (loss) during the period		8,011		32,900		9,325			(2,303	)		47,933			(19,430	)		28,503
Balance – March 31, 2015	$	15,449		234,728		(493,702	)		(6,385	)	$	(249,910	)		97,419		$	(152,491	)
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		19,968		42,119		—			—			62,087			(24,374	)		37,713
Foreign currency translation adjustment		—		—		—			(234	)		(234	)		98			(136	)
Total other comprehensive income before reclassifications		19,968		42,119		—			(234	)		61,853			(24,276	)		37,577
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		2		823		—			—			825	(b)		(324	)		501
Amortization of prior service credit		—		—		(2,000	)		—			(2,000	) (e)		785			(1,215	)
Amortization of actuarial losses		—		—		3,350			—			3,350	(e)		(1,315	)		2,035
Total reclassifications		2		823		1,350			—			2,175			(854	)		1,321
Total gain (loss) during the period		19,970		42,942		1,350			(234	)		64,028			(25,130	)		38,898
Balance – March 31, 2014	$	57,225		61,392		(160,267	)		(119	)	$	(41,769	)		16,508		$	(25,261	)

(a) Other-than-temporary impairment

(b) Included in interest income

(c) Included in loss on bank investment securities

(d) Included in interest expense

(e) Included in salaries and employee benefits

Accumulated Other Comprehensive Income (Loss), Net

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

	Investment securities				Defined benefit
	With OTTI		All other		plans			Other			Total
	(in thousands)
Balance – December 31, 2014	$	4,518		122,683		(305,589	)		(2,606	)	$	(180,994	)
Net gain (loss) during period		4,898		20,441		4,677			(1,513	)		28,503
Balance – March 31, 2015	$	9,416		143,124		(300,912	)		(4,119	)	$	(152,491	)

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Derivative financial instruments (Tables)

3 Months Ended

Mar. 31, 2015

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)
March 31, 2015
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.4		4.42	%		1.22	%
December 31, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.7		4.42	%		1.19	%

(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable 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
	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	72,855		73,251	$	—		—
Commitments to sell real estate loans (a)		662		728		3,529		4,217
		73,517		73,979		3,529		4,217
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		26,295		17,396		65		49
Commitments to sell real estate loans (a)		1,571		754		8,552		4,330
Trading:
Interest rate contracts (b)		246,819		215,614		204,484		173,513
Foreign exchange and other option and futures contracts (b)		37,957		31,112		35,684		29,950
		312,642		264,876		248,785		207,842
Total derivatives	$	386,159		338,855	$	252,314		212,059

(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 March 31, 2015					Three months ended March 31, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(396	)		161	$	(8,160	)		7,920
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	660				$	(302	)
Foreign exchange and other option and futures contracts (b)		(167	)				(5,030	)
Total	$	493				$	(5,332	)

(a) Reported as other revenues from operations.

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

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parenthetical) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Common stock per share dividend amount	$ 0.70	$ 0.70
Common Stock [Member] | Series A Warrants [Member]
Exercise of warrants into shares of common stock	2,315
Exercise of warrants into shares of common stock	904
Retained Earnings [Member]
Common stock per share dividend amount	$ 0.70	$ 0.70

XML

Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at March 31, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at March 31, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	363,085		48,978		314,107		—
Investment securities available for sale:
U.S. Treasury and federal agencies		163,234		—		163,234		—
Obligations of states and political subdivisions		7,850		—		7,850		—
Mortgage-backed securities:
Government issued or guaranteed		10,265,221		—		10,265,221		—
Privately issued		95		—		—		95
Collateralized debt obligations		47,278		—		—		47,278
Other debt securities		121,273		—		121,273		—
Equity securities		98,549		71,804		26,745		—
		10,703,500		71,804		10,584,323		47,373
Real estate loans held for sale		540,546		—		540,546		—
Other assets (b)		101,383		—		75,088		26,295
Total assets	$	11,708,514		120,782		11,514,064		73,668
Trading account liabilities	$	240,168		—		240,168		—
Other liabilities (b)		12,146		—		12,081		65
Total liabilities	$	252,314		—		252,249		65

	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2015 and the year ended December 31, 2014.

(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 March 31, 2015 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			29,770	(a)
Included in other comprehensive income		—			(2,004	) (d)		—
Settlements		(8	)		(1,034	)		—
Transfers in and/or out of Level 3 (b)		—			—			(20,887	) (c)
Balance – March 31, 2015	$	95		$	47,278		$	26,230
Changes in unrealized gains included in earnings related to assets still held at March 31, 2015	$	—		$	—		$	22,636	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended March 31, 2014 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			22,383	(a)
Included in other comprehensive income		67	(d)		4,646	(d)		—
Settlements		(1,221	)		(5,961	)		—
Transfers in and/or out of Level 3 (b)		—			—			(13,735	) (c)
Balance – March 31, 2014	$	696		$	61,768		$	12,589
Changes in unrealized gains included in earnings related to assets still held at March 31, 2014	$	—		$	—		$	15,050	(a)

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

(b) 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.

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

(d) Reported as net unrealized gains 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 March 31, 2015 and December 31, 2014:

	Fair value at March 31, 2015		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	95	Two independent pricing quotes		—	—
Collateralized debt obligations		47,278	Discounted cash flow		Probability of default	12%-57% (45%)
					Loss severity	100%
Net other assets (liabilities) (a)		26,230	Discounted cash flow		Commitment expirations	0%-96% (19%)
	Fair value at December 31, 2014		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103	Two independent pricing quotes		—	—
Collateralized debt obligations		50,316	Discounted cash flow		Probability of default	12%-57% (36%)
					Loss severity	100%
Net other assets (liabilities) (a)		17,347	Discounted cash flow		Commitment expirations	0%-96% (17%)

(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:

	March 31, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,366,853		$	1,366,853		$	1,311,917	$	54,936		$	—
Interest-bearing deposits at banks		6,291,491			6,291,491			—		6,291,491			—
Trading account assets		363,085			363,085			48,978		314,107			—
Investment securities		14,393,270			14,444,292			71,804		14,162,805			209,683
Loans and leases:
Commercial loans and leases		19,775,494			19,484,920			—		—			19,484,920
Commercial real estate loans		27,845,710			27,746,166			—		117,366			27,628,800
Residential real estate loans		8,504,119			8,609,248			—		5,119,739			3,489,509
Consumer loans		10,973,719			10,880,895			—		—			10,880,895
Allowance for credit losses		(921,373	)		—			—		—			—
Loans and leases, net		66,177,669			66,721,229			—		5,237,105			61,484,124
Accrued interest receivable		244,079			244,079			—		244,079			—
Financial liabilities:
Noninterest-bearing deposits	$	(27,181,120	)	$	(27,181,120	)	$	—	$	(27,181,120	)	$	—
Savings deposits and NOW accounts		(43,288,329	)		(43,288,329	)		—		(43,288,329	)		—
Time deposits		(2,946,126	)		(2,967,329	)		—		(2,967,329	)		—
Deposits at Cayman Islands office		(178,545	)		(178,545	)		—		(178,545	)		—
Short-term borrowings		(193,495	)		(193,495	)		—		(193,495	)		—
Long-term borrowings		(10,509,143	)		(10,641,367	)		—		(10,641,367	)		—
Accrued interest payable		(77,903	)		(77,903	)		—		(77,903	)		—
Trading account liabilities		(240,168	)		(240,168	)		—		(240,168	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	26,230		$	26,230		$	—	$	—		$	26,230
Commitments to sell real estate loans		(9,848	)		(9,848	)		—		(9,848	)		—
Other credit-related commitments		(112,511	)		(112,511	)		—		—			(112,511	)
Interest rate swap agreements used for interest rate risk management		72,855			72,855			—		72,855			—

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management

XML

Investment Securities - Investment Securities in Continuous Unrealized Loss Position (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	$ 1,627,889	$ 65,554
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(10,737)	(2,659)
Estimated fair value, 12 months or more	103,245	103,914
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(19,254)	(18,584)
Held to maturity, Estimated fair value, Less than 12 months	51,932	167,299
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(402)	(545)
Held to maturity, Estimated fair value, 12 months or more	400,560	574,560
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(40,592)	(51,220)
Total investment securities, fair value less than 12 months	1,679,821	232,853
Investment Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(11,139)	(3,204)
Total of investment securities, fair value, 12 Months or More	503,805	678,474
Investment Securities Continuous Unrealized Loss Position Twelve Months or Longer Aggregate Losses	(59,846)	(69,804)
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	986	1,785
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(4)	(52)
Estimated fair value, 12 months or more	1,524	121
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(49)	(1)
Held to maturity, Estimated fair value, Less than 12 months	35,272	29,886
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(317)	(184)
Held to maturity, Estimated fair value, 12 months or more	1,802	268
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(33)	(5)
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	1,603,068	39,001
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(8,597)	(186)
Estimated fair value, 12 months or more	4,138	5,555
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(112)	(151)
Held to maturity, Estimated fair value, Less than 12 months	16,660	137,413
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(85)	(361)
Held to maturity, Estimated fair value, 12 months or more	266,979	446,780
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(3,939)	(6,639)
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Held to maturity, Estimated fair value, 12 months or more	131,779	127,512
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(36,620)	(44,576)
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	4,681	6,505
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(1)	(5)
Privately Issued Mortgage-Backed Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, 12 months or more	59	65
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(3)	(3)
Collateralized Debt Obligations [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	6,091	2,108
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(1,255)	(696)
Estimated fair value, 12 months or more	5,220	5,512
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(531)	(337)
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	12,689	14,017
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(443)	(556)
Estimated fair value, 12 months or more	92,304	92,661
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(18,559)	(18,092)
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	374	2,138
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	$ (437)	$ (1,164)

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Shareholders' Equity - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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

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Fair Value Measurements - Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities) (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Financial assets:
Cash and cash equivalents	$ 1,366,853	$ 1,373,357	$ 1,763,118	$ 1,672,934
Interest-bearing deposits at banks	6,291,491	6,470,867
Trading account assets	363,085	308,175
Loans and leases:
Allowance for credit losses	(921,373)	(919,562)	(916,768)	(916,676)
Loans and leases, net	66,177,669	65,749,394
Financial liabilities:
Noninterest-bearing deposits	(27,181,120)	(26,947,880)
Time deposits	(2,946,126)	(3,063,973)
Deposits at Cayman Islands office	(178,545)	(176,582)
Short-term borrowings	(193,495)	(192,676)
Long-term borrowings	(10,509,143)	(9,006,959)
Trading account liabilities	(240,168)	(203,464)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash and cash equivalents	1,311,917	1,296,923
Trading account assets	48,978	51,416
Investment securities	71,804	64,841
Significant Observable Inputs (Level 2) [Member]
Financial assets:
Cash and cash equivalents	54,936	76,434
Interest-bearing deposits at banks	6,291,491	6,470,867
Trading account assets	314,107	256,759
Investment securities	14,162,805	12,750,396
Loans and leases:
Commercial real estate loans	117,366	307,667
Residential real estate loans	5,119,739	5,189,086
Loans and leases, net	5,237,105	5,496,753
Accrued interest receivable	244,079	227,348
Financial liabilities:
Noninterest-bearing deposits	(27,181,120)	(26,947,880)
Savings deposits and NOW accounts	(43,288,329)	(43,393,618)
Time deposits	(2,967,329)	(3,086,126)
Deposits at Cayman Islands office	(178,545)	(176,582)
Short-term borrowings	(193,495)	(192,676)
Long-term borrowings	(10,641,367)	(9,139,789)
Accrued interest payable	(77,903)	(63,372)
Trading account liabilities	(240,168)	(203,464)
Other financial instruments:
Commitments to sell real estate loans	(9,848)	(7,065)
Interest rate swap agreements used for interest rate risk management	72,855	73,251
Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Investment securities	209,683	208,719
Loans and leases:
Commercial loans and leases	19,484,920	19,188,574
Commercial real estate loans	27,628,800	27,180,151
Residential real estate loans	3,489,509	3,539,970
Consumer loans	10,880,895	10,909,623
Loans and leases, net	61,484,124	60,818,318
Other financial instruments:
Commitments to originate real estate loans for sale	26,230	17,347
Other credit-related commitments	(112,511)	(119,079)
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	1,366,853	1,373,357
Interest-bearing deposits at banks	6,291,491	6,470,867
Trading account assets	363,085	308,175
Investment securities	14,393,270	12,993,542
Loans and leases:
Commercial loans and leases	19,775,494	19,461,292
Commercial real estate loans	27,845,710	27,567,569
Residential real estate loans	8,504,119	8,657,301
Consumer loans	10,973,719	10,982,794
Allowance for credit losses	(921,373)	(919,562)
Loans and leases, net	66,177,669	65,749,394
Accrued interest receivable	244,079	227,348
Financial liabilities:
Noninterest-bearing deposits	(27,181,120)	(26,947,880)
Savings deposits and NOW accounts	(43,288,329)	(43,393,618)
Time deposits	(2,946,126)	(3,063,973)
Deposits at Cayman Islands office	(178,545)	(176,582)
Short-term borrowings	(193,495)	(192,676)
Long-term borrowings	(10,509,143)	(9,006,959)
Accrued interest payable	(77,903)	(63,372)
Trading account liabilities	(240,168)	(203,464)
Other financial instruments:
Commitments to originate real estate loans for sale	26,230	17,347
Commitments to sell real estate loans	(9,848)	(7,065)
Other credit-related commitments	(112,511)	(119,079)
Interest rate swap agreements used for interest rate risk management	72,855	73,251
Estimate Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,366,853	1,373,357
Interest-bearing deposits at banks	6,291,491	6,470,867
Trading account assets	363,085	308,175
Investment securities	14,444,292	13,023,956
Loans and leases:
Commercial loans and leases	19,484,920	19,188,574
Commercial real estate loans	27,746,166	27,487,818
Residential real estate loans	8,609,248	8,729,056
Consumer loans	10,880,895	10,909,623
Loans and leases, net	66,721,229	66,315,071
Accrued interest receivable	244,079	227,348
Financial liabilities:
Noninterest-bearing deposits	(27,181,120)	(26,947,880)
Savings deposits and NOW accounts	(43,288,329)	(43,393,618)
Time deposits	(2,967,329)	(3,086,126)
Deposits at Cayman Islands office	(178,545)	(176,582)
Short-term borrowings	(193,495)	(192,676)
Long-term borrowings	(10,641,367)	(9,139,789)
Accrued interest payable	(77,903)	(63,372)
Trading account liabilities	(240,168)	(203,464)
Other financial instruments:
Commitments to originate real estate loans for sale	26,230	17,347
Commitments to sell real estate loans	(9,848)	(7,065)
Other credit-related commitments	(112,511)	(119,079)
Interest rate swap agreements used for interest rate risk management	$ 72,855	$ 73,251

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Consolidated Balance Sheet (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 1,269,816	$ 1,289,965
Interest-bearing deposits at banks	6,291,491	6,470,867
Federal funds sold	97,037	83,392
Trading account	363,085	308,175
Investment securities (includes pledged securities that can be sold or repledged of $1,611,069 at March 31, 2015; $1,631,267 at December 31, 2014)
Available for sale (cost: $10,425,720 at March 31, 2015; $8,919,324 at December 31, 2014)	10,703,500	9,156,932
Held to maturity (fair value: $3,411,834 at March 31, 2015; $3,538,282 at December 31, 2014)	3,360,812	3,507,868
Other (fair value: $328,958 at March 31, 2015; $328,742 at December 31, 2014)	328,958	328,742
Total investment securities	14,393,270	12,993,542
Loans and leases	67,328,490	66,899,369
Unearned discount	(229,448)	(230,413)
Loans and leases, net of unearned discount	67,099,042	66,668,956
Allowance for credit losses	(921,373)	(919,562)
Loans and leases, net	66,177,669	65,749,394
Premises and equipment	602,096	612,984
Goodwill	3,524,625	3,524,625
Core deposit and other intangible assets	28,234	35,027
Accrued interest and other assets	5,630,460	5,617,564
Total assets	98,377,783	96,685,535
Liabilities
Noninterest-bearing deposits	27,181,120	26,947,880
NOW accounts	2,149,537	2,307,815
Savings deposits	41,138,792	41,085,803
Time deposits	2,946,126	3,063,973
Deposits at Cayman Islands office	178,545	176,582
Total deposits	73,594,120	73,582,053
Federal funds purchased and agreements to repurchase securities	193,495	192,676
Accrued interest and other liabilities	1,552,724	1,567,951
Long-term borrowings	10,509,143	9,006,959
Total liabilities	85,849,482	84,349,639
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 March 31, 2015 and at December 31, 2014; Liquidation preference of $10,000 per share: 50,000 shares at March 31, 2015 and December 31, 2014	1,231,500	1,231,500
Common stock, $.50 par, 250,000,000 shares authorized, 132,909,718 shares issued at March 31, 2015; 132,312,931 shares issued at December 31, 2014	66,455	66,157
Common stock issuable, 36,360 shares at March 31, 2015; 41,330 shares at December 31, 2014	2,310	2,608
Additional paid-in capital	3,445,707	3,409,506
Retained earnings	7,934,820	7,807,119
Accumulated other comprehensive income (loss), net	(152,491)	(180,994)
Total shareholders' equity	12,528,301	12,335,896
Total liabilities and shareholders' equity	$ 98,377,783	$ 96,685,535

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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
	Mar. 31, 2015	Mar. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 919,562	$ 916,676
Provision for credit losses	38,000	32,000
Net charge-offs
Charge-offs	(47,476)	(47,439)
Recoveries	11,287	15,531
Net charge-offs	(36,189)	(31,908)
Ending balance	921,373	916,768
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	288,038	273,383
Provision for credit losses	1,442	12,598
Net charge-offs
Charge-offs	(12,350)	(14,809)
Recoveries	3,939	5,663
Net charge-offs	(8,411)	(9,146)
Ending balance	281,069	276,835
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	307,927	324,978
Provision for credit losses	15,542	116
Net charge-offs
Charge-offs	(6,679)	(3,486)
Recoveries	585	3,197
Net charge-offs	(6,094)	(289)
Ending balance	317,375	324,805
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	61,910	78,656
Provision for credit losses	960	4,228
Net charge-offs
Charge-offs	(3,118)	(7,453)
Recoveries	989	1,631
Net charge-offs	(2,129)	(5,822)
Ending balance	60,741	77,062
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	186,033	164,644
Provision for credit losses	19,574	14,141
Net charge-offs
Charge-offs	(25,329)	(21,691)
Recoveries	5,774	5,040
Net charge-offs	(19,555)	(16,651)
Ending balance	186,052	162,134
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	75,654	75,015
Provision for credit losses	482	917
Net charge-offs
Ending balance	$ 76,136	$ 75,932

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Consolidated Statement of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net income	$ 241,613	$ 229,017
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	38,000	32,000
Depreciation and amortization of premises and equipment	24,178	24,708
Amortization of capitalized servicing rights	12,199	17,792
Amortization of core deposit and other intangible assets	6,793	10,062
Provision for deferred income taxes	37,052	42,256
Asset write-downs	2,379	1,117
Net gain on sales of assets	(1,066)	(852)
Net change in accrued interest receivable, payable	(2,200)	(3,185)
Net change in other accrued income and expense	(80,084)	57,884
Net change in loans originated for sale	197,708	122,406
Net change in trading account assets and liabilities	(18,206)	27,893
Net cash provided by operating activities	458,366	561,098
Cash flows from investing activities
Proceeds from sales of investment securities Available for sale	693
Proceeds from sales of investment securities Other	132	146
Proceeds from maturities of investment securities Available for sale	369,649	166,324
Proceeds from maturities of investment securities Held to maturity	148,708	92,305
Purchases of investment securities Available for sale	(1,871,491)	(1,709,847)
Purchases of investment securities Held to maturity	(7,442)	(3,238)
Purchases of investment securities Other	(348)	(258)
Net increase in loans and leases	(666,220)	(220,551)
Net (increase) decrease in interest bearing deposits at banks	179,376	(1,648,047)
Capital expenditures, net	(9,598)	(16,725)
Net (increase) decrease in loan servicing advances	76,145	(122,910)
Other, net	(21,940)	21,763
Net cash used by investing activities	(1,802,336)	(3,441,038)
Cash flows from financing activities
Net increase (decrease) in deposits	(4,543)	1,581,705
Net increase (decrease) in short-term borrowings	819	(30,246)
Proceeds from long-term borrowings	1,500,000	1,498,688
Payments on long-term borrowings	(1,797)	(352,245)
Proceeds from issuance of preferred stock		346,500
Dividends paid - common	(93,631)	(92,406)
Dividends paid - preferred	(17,368)	(6,080)
Other, net	(46,014)	24,208
Net cash provided by financing activities	1,337,466	2,970,124
Net increase (decrease) in cash and cash equivalents	(6,504)	90,184
Cash and cash equivalents at beginning of period	1,373,357	1,672,934
Cash and cash equivalents at end of period	1,366,853	1,763,118
Supplemental disclosure of cash flow information
Interest received during the period	726,475	695,653
Interest paid during the period	75,776	61,841
Income taxes paid during the period	88,578	4,789
Supplemental schedule of noncash investing and financing activities
Securitization of residential mortgage loans allocated to Available-for-sale investment securities	12,920	29,785
Securitization of residential mortgage loans allocated to capitalized servicing rights	143	372
Real estate acquired in settlement of loans	$ 10,846	$ 8,886

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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
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Net income available to common equity	$ 221,295	$ 214,343
Less: Income attributable to unvested stock-based compensation awards	(2,458)	(2,612)
Net income available to common shareholders	$ 218,837	$ 211,731
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards	133,542	131,800
Less: Unvested stock-based compensation awards	(1,493)	(1,588)
Plus: Incremental shares from assumed conversion of stock-based compensation awards	720	914
Adjusted weighted-average shares outstanding	132,769	131,126
Diluted earnings per common share	$ 1.65	$ 1.61

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Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Significant Accounting Policies [Line Items]
Amount restated as a result of adoption of new guidance	$ 375,416	$ 354,306
Adjustments for New Accounting Pronouncement [Member]
Significant Accounting Policies [Line Items]
Amount restated as a result of adoption of new guidance		$ 12,000

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	$ 386,159	$ 338,855
Liability derivatives, Fair value	252,314	212,059
Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	312,642	264,876
Liability derivatives, Fair value	248,785	207,842
Fair Value Hedges [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	73,517	73,979
Liability derivatives, Fair value	3,529	4,217
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	72,855	73,251
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	1,571	754
Liability derivatives, Fair value	8,552	4,330
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	662	728
Liability derivatives, Fair value	3,529	4,217
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	26,295	17,396
Liability derivatives, Fair value	65	49
Interest Rate Contracts [Member] | Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset derivatives, Fair value	246,819	215,614
Liability derivatives, Fair value	204,484	173,513
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	37,957	31,112
Liability derivatives, Fair value	$ 35,684	$ 29,950

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Segment information

3 Months Ended

Mar. 31, 2015

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, 2014. 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. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. Effective January 1, 2015, the Company made certain changes to its methodology for measuring segment profit and loss. Those changes in the measurement of segment profitability were largely the result of updated funds transfer pricing and various cost allocation reviews. The most significant changes to the funds transfer pricing resulted from ascribing a longer duration to non-maturity deposits, which significantly benefitted the Retail Banking segment. The cost allocation review having the largest impact related to a branch cost study. That study consisted of transaction reviews and time studies which resulted in a higher cost allocation from the Retail Banking segment to the Business Banking segment. As a result of the changes, prior period financial information has been restated to provide segment information on a comparable basis, as noted below:

	Three months ended March 31, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	28,598			(3,625	)		24,973
Commercial Banking		99,765			(924	)		98,841
Commercial Real Estate		74,561			(2,009	)		72,552
Discretionary Portfolio		11,279			81			11,360
Residential Mortgage Banking		19,411			(831	)		18,580
Retail Banking		29,711			39,323			69,034
All Other		(34,308	)		(32,015	)		(66,323	)
Total	$	229,017			—			229,017

As also described in note 22 to the Company’s 2014 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 March 31
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	108,560		1,045			24,811		$	111,770		1,057			24,973
Commercial Banking		246,581		1,085			96,423			249,349		1,197			98,841
Commercial Real Estate		163,320		82			80,086			157,323		348			72,552
Discretionary Portfolio		15,474		(5,443	)		5,954			24,657		(5,039	)		11,360
Residential Mortgage Banking		111,458		11,387			31,965			93,765		9,748			18,580
Retail Banking		300,391		3,137			68,888			306,780		3,505			69,034
All Other		154,007		(11,293	)		(66,514	)		132,896		(10,816	)		(66,323	)
Total	$	1,099,791		—			241,613		$	1,076,540		—			229,017

	Average total assets
	Three months ended March 31				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,300		5,242		5,281
Commercial Banking		23,683		22,523		22,892
Commercial Real Estate		18,019		16,937		17,113
Discretionary Portfolio		22,714		18,581		20,798
Residential Mortgage Banking		3,512		3,157		3,333
Retail Banking		10,788		10,155		10,449
All Other		11,876		10,070		12,277
Total	$	95,892		86,665		92,143

(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 $5,838,000 and $5,945,000 for the three-month periods ended March 31, 2015 and 2014, 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 $)	Mar. 31, 2015	Dec. 31, 2014	Aug. 27, 2012
Business Acquisition [Line Items]
Purchase consideration per common share			$ 0.08403
Percentage of total equity consideration			60.00%
Percentage of total cash consideration			40.00%
Total consideration to be paid	$ 5,500,000,000
Assets	98,377,783,000	96,685,535,000
Loans	66,177,669,000	65,749,394,000
Liabilities	85,849,482,000	84,349,639,000
Deposits	73,594,120,000	73,582,053,000
Hudson City [Member]
Business Acquisition [Line Items]
Assets	36,100,000,000
Loans	20,900,000,000
Investment securities	8,300,000,000
Liabilities	31,300,000,000
Deposits	$ 18,900,000,000

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Significant accounting policies (Policies)

3 Months Ended

Mar. 31, 2015

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 2014 Annual Report. Additionally, effective January 1, 2015 the Company made an accounting policy election in accordance with amended accounting guidance issued by the Financial Accounting Standards Board in January 2014 to account for investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method, the Company 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 adoption of the amended guidance did not have a significant effect on the Company’s financial position or results of operation, but did result in the restatement of the consolidated statement of income for the three-month period ended March 31, 2014 to remove $12 million of losses associated with qualified affordable housing projects from “other costs of operations” and include the amortization of the initial cost of the investment in income tax expense. The cumulative effect adjustment associated with adopting the amended guidance was not material as of the beginning of any period presented in these consolidated financial statements. See note 11 for information regarding the Company’s investments in qualified affordable housing projects.

In the opinion of management, all adjustments necessary for a fair presentation have been made and, except as described above, were all of a normal recurring nature.

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Fair Value Measurements - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of independent pricing sources used to value privately issued mortgage-backed securities valued with internal modeling	2
Securities issued by financial institutions and other entities backed by trust preferred securities at cost	$ 30		$ 30
Fair value of securities issued by financial institutions and other entities backed by trust preferred securities	47		50
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Change in fair value of nonrecurring fair value measured loans for charge-offs and impairment reserves	8	15
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans measured at fair value on nonrecurring basis	101	161	173
Assets taken in foreclosure of defaulted loans measured at fair value on a nonrecurring basis	11	11
Fair Value, Measurements, Nonrecurring [Member] | 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	67	100	94
Fair Value, Measurements, Nonrecurring [Member] | 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	$ 34	$ 61	$ 79
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR	5.00%
Discount rates for fair value estimations	10.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount margin over LIBOR	10.00%
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%

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (USD $) In Thousands, unless otherwise specified	Total	Series E Preferred Stock [Member]	Preferred Stock [Member]	Preferred Stock [Member] Series E Preferred Stock [Member]	Common Stock [Member]	Common Stock [Member] Series A Warrants [Member]	Common Stock Issuable [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] Series A Warrants [Member]	Additional Paid-in Capital [Member] Series E Preferred Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), Net [Member]
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	267,915										229,017	38,898
Preferred stock cash dividends	(14,674)										(14,674)
Issuance of Series E preferred stock		346,500		350,000						(3,500)
Stock-based compensation plans:
Compensation expense, net	14,122				123			13,999
Exercises of stock options, net	49,494				266			49,228
Stock purchase plan	9,588				43			9,545
Directors' stock plan	441				2			439
Deferred compensation plans, net, including dividend equivalents	(61)				2		(299)	265			(29)
Other	412							412
Common stock cash dividends - $.70 per share	(92,406)										(92,406)
Ending balance at Mar. 31, 2014	11,886,863		1,231,500		65,694		2,616	3,302,402			7,309,912	(25,261)
Beginning balance at Dec. 31, 2014	12,335,896		1,231,500		66,157		2,608	3,409,506			7,807,119	(180,994)
Total comprehensive income	270,116										241,613	28,503
Preferred stock cash dividends	(20,318)										(20,318)
Exercise of stock warrants into common stock						1			(1)
Stock-based compensation plans:
Compensation expense, net	5,572				147			5,425
Exercises of stock options, net	19,479				101			19,378
Stock purchase plan	10,346				45			10,301
Directors' stock plan	425				2			423
Deferred compensation plans, net, including dividend equivalents	(51)				2		(298)	270			(25)
Other	405							405
Common stock cash dividends - $.70 per share	(93,569)										(93,569)
Ending balance at Mar. 31, 2015	$ 12,528,301		$ 1,231,500		$ 66,455		$ 2,310	$ 3,445,707			$ 7,934,820	$ (152,491)

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Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Pledged securities that can be sold or repledged	$ 1,611,069	$ 1,631,267
Investment securities, available for sale, amortized cost	10,425,720	8,919,324
Investment securities, held to maturity, fair value	3,411,834	3,538,282
Other, fair value	$ 328,958	$ 328,742
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	132,909,718	132,312,931
Common stock issuable, shares	36,360	41,330
Series A and Series C [Member]
Preferred stock, shares issued	731,500	731,500
Preferred stock, shares outstanding	731,500	731,500
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

3 Months Ended

Mar. 31, 2015

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
	With OTTI (a)		All other		Defined benefit plans			Other			Total amount before tax			Income tax			Net
	(in thousands)
Balance – January 1, 2015	$	7,438		201,828		(503,027	)		(4,082	)	$	(297,843	)		116,849		$	(180,994	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		8,011		32,063		—			—			40,074			(15,247	)		24,827
Foreign currency translation adjustment		—		—		—			(3,732	)		(3,732	)		1,348			(2,384	)
Gains on cash flow hedges		—		—		—			1,453			1,453			(568	)		885
Total other comprehensive income before reclassifications		8,011		32,063		—			(2,279	)		37,795			(14,467	)		23,328
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on held-to-maturity (“HTM”) securities		—		739		—			—			739	(b)		(289	)		450
Losses realized in net income		—		98		—			—			98	(c)		(36	)		62
Accretion of gain on terminated cash flow hedges		—		—		—			(24	)		(24	) (d)		10			(14	)
Amortization of prior service credit		—		—		(1,875	)		—			(1,875	) (e)		934			(941	)
Amortization of actuarial losses		—		—		11,200			—			11,200	(e)		(5,582	)		5,618
Total reclassifications		—		837		9,325			(24	)		10,138			(4,963	)		5,175
Total gain (loss) during the period		8,011		32,900		9,325			(2,303	)		47,933			(19,430	)		28,503
Balance – March 31, 2015	$	15,449		234,728		(493,702	)		(6,385	)	$	(249,910	)		97,419		$	(152,491	)
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		19,968		42,119		—			—			62,087			(24,374	)		37,713
Foreign currency translation adjustment		—		—		—			(234	)		(234	)		98			(136	)
Total other comprehensive income before reclassifications		19,968		42,119		—			(234	)		61,853			(24,276	)		37,577
Amounts reclassified from accumulated other comprehensive income that (increase) decrease net income:
Accretion of unrealized holding losses on HTM securities		2		823		—			—			825	(b)		(324	)		501
Amortization of prior service credit		—		—		(2,000	)		—			(2,000	) (e)		785			(1,215	)
Amortization of actuarial losses		—		—		3,350			—			3,350	(e)		(1,315	)		2,035
Total reclassifications		2		823		1,350			—			2,175			(854	)		1,321
Total gain (loss) during the period		19,970		42,942		1,350			(234	)		64,028			(25,130	)		38,898
Balance – March 31, 2014	$	57,225		61,392		(160,267	)		(119	)	$	(41,769	)		16,508		$	(25,261	)

(a) Other-than-temporary impairment

(b) Included in interest income

(c) Included in loss on bank investment securities

(d) Included in interest expense

(e) Included in salaries and employee benefits

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

	Investment securities				Defined benefit
	With OTTI		All other		plans			Other			Total
	(in thousands)
Balance – December 31, 2014	$	4,518		122,683		(305,589	)		(2,606	)	$	(180,994	)
Net gain (loss) during period		4,898		20,441		4,677			(1,513	)		28,503
Balance – March 31, 2015	$	9,416		143,124		(300,912	)		(4,119	)	$	(152,491	)

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	MTB
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		132,970,139

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Derivative financial instruments

3 Months Ended

Mar. 31, 2015

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 was not significant as of March 31, 2015.

The net effect of interest rate swap agreements was to increase net interest income by $11 million for each of the three-month periods ended March 31, 2015 and 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)
March 31, 2015
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.4		4.42	%		1.22	%
December 31, 2014
Fair value hedges:
Fixed rate long-term borrowings (a)	$	1,400,000		2.7		4.42	%		1.19	%

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

The use of cash flow hedges to manage the variability of cash flows associated with the then-forecasted issuance of long-term debt did not have a significant impact on the Company’s consolidated financial position or results of operations.

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 account 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 account purposes had notional values of $17.1 billion and $17.6 billion at March 31, 2015 and December 31, 2014, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes aggregated $1.4 billion and $1.3 billion at March 31, 2015 and December 31, 2014, 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
	March 31, 2015		December 31, 2014		March 31, 2015		December 31, 2014
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	72,855		73,251	$	—		—
Commitments to sell real estate loans (a)		662		728		3,529		4,217
		73,517		73,979		3,529		4,217
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		26,295		17,396		65		49
Commitments to sell real estate loans (a)		1,571		754		8,552		4,330
Trading:
Interest rate contracts (b)		246,819		215,614		204,484		173,513
Foreign exchange and other option and futures contracts (b)		37,957		31,112		35,684		29,950
		312,642		264,876		248,785		207,842
Total derivatives	$	386,159		338,855	$	252,314		212,059

(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 March 31, 2015					Three months ended March 31, 2014
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(396	)		161	$	(8,160	)		7,920
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	660				$	(302	)
Foreign exchange and other option and futures contracts (b)		(167	)				(5,030	)
Total	$	493				$	(5,332	)

(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 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 at $31 million and $28 million March 31, 2015 and December 31, 2014, 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 $174 million and $161 million at March 31, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net liability positions with counterparties aggregated $114 million and $103 million at March 31, 2015 and December 31, 2014, respectively. The Company was required to post collateral relating to those positions of $102 million and $90 million, at March 31, 2015 and December 31, 2014, 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 March 31, 2015 was $22 million, for which the Company had posted collateral of $15 million in the normal course of business. If the credit risk-related contingent features had been triggered on March 31, 2015, the maximum amount of additional collateral the Company would have been required to post with counterparties was $7 million.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $106 million and $104 million at March 31, 2015 and December 31, 2014, respectively. After consideration of such netting arrangements, the net asset positions with counterparties aggregated $46 million at each of March 31, 2015 and December 31, 2014. Counterparties posted collateral relating to those positions of $47 million and $46 million at March 31, 2015 and December 31, 2014, 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.

In addition to the derivative contracts noted above, the Company clears certain derivative transactions through a clearinghouse rather than directly with counterparties. Those transactions cleared through a clearinghouse require initial margin collateral and additional collateral for contracts in a net liability position. The net fair values of derivative instruments cleared through clearinghouses at March 31, 2015 was a net liability position of $65 million and at December 31, 2014 was a net liability position of $35 million. Collateral posted with clearinghouses was $97 million and $61 million at March 31, 2015 and December 31, 2014, respectively.

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Consolidated Statement of Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Interest income
Loans and leases, including fees	$ 647,179	$ 645,222
Deposits at banks	3,118	1,884
Federal funds sold	24	16
Trading account	491	427
Investment securities
Fully taxable	85,957	73,899
Exempt from federal taxes	1,318	1,504
Total interest income	738,087	722,952
Interest expense
NOW accounts	311	297
Savings deposits	10,219	11,601
Time deposits	3,740	3,940
Deposits at Cayman Islands office	147	208
Short-term borrowings	34	32
Long-term borrowings	64,048	50,441
Total interest expense	78,499	66,519
Net interest income	659,588	656,433
Provision for credit losses	38,000	32,000
Net interest income after provision for credit losses	621,588	624,433
Other income
Mortgage banking revenues	101,601	80,049
Service charges on deposit accounts	102,344	104,198
Trust income	123,734	121,252
Brokerage services income	15,461	16,500
Trading account and foreign exchange gains	6,231	6,447
Loss on bank investment securities	(98)
Equity in earnings of Bayview Lending Group LLC	(4,191)	(4,454)
Other revenues from operations	95,121	96,115
Total other income	440,203	420,107
Other expense
Salaries and employee benefits	389,893	371,326
Equipment and net occupancy	66,470	71,167
Printing, postage and supplies	9,590	10,956
Amortization of core deposit and other intangible assets	6,793	10,062
FDIC assessments	10,660	15,488
Other costs of operations	202,969	211,235
Total other expense	686,375	690,234
Income before taxes	375,416	354,306
Income taxes	133,803	125,289
Net income	241,613	229,017
Net income available to common shareholders
Basic	218,830	211,720
Diluted	$ 218,837	$ 211,731
Net income per common share
Basic	$ 1.66	$ 1.63
Diluted	$ 1.65	$ 1.61
Cash dividends per common share	$ 0.70	$ 0.70
Average common shares outstanding
Basic	132,049	130,212
Diluted	132,769	131,126

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Loans and leases and the allowance for credit losses

3 Months Ended

Mar. 31, 2015

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 that is included in the consolidated balance sheet were as follows:

	March 31, 2015		December 31, 2014
	(in thousands)
Outstanding principal balance	$	2,837,256		3,070,268
Carrying amount:
Commercial, financial, leasing, etc.		207,884		247,820
Commercial real estate		869,700		961,828
Residential real estate		434,454		453,360
Consumer		888,985		933,537
	$	2,401,023		2,596,545

Purchased impaired loans included in the table above totaled $184 million at March 31, 2015 and $198 million at December 31, 2014, 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-month periods ended March 31, 2015 and 2014 follows:

	Three months ended March 31, 2015
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	76,518			397,379			473,897
Interest income		(5,206	)		(41,277	)		(46,483	)
Reclassifications from nonaccretable balance, net		110			183			293
Other (a)		—			1,610			1,610
Balance at end of period	$	71,422			357,895			429,317

	Three months ended March 31, 2014
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	37,230			538,633			575,863
Interest income		(6,328	)		(52,633	)		(58,961	)
Reclassifications from nonaccretable balance, net		37			—			37
Other (a)		—			(838	)		(838	)
Balance at end of period	$	30,939			485,162			516,101

(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 March 31, 2015 and December 31, 2014 were as 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)
March 31, 2015
Commercial, financial, leasing, etc.	$	19,519,566		43,213		4,265		3,323		9,724		195,403		19,775,494
Real estate:
Commercial		22,225,088		116,465		27,261		17,187		45,752		142,007		22,573,760
Residential builder and developer		1,460,981		6,119		—		6,953		91,839		65,310		1,631,202
Other commercial construction		3,575,578		18,244		3,864		1,721		17,061		24,280		3,640,748
Residential		7,580,514		189,901		197,299		20,058		17,283		171,496		8,176,551
Residential Alt-A		241,467		11,831		—		—		—		74,270		327,568
Consumer:
Home equity lines and loans		5,783,865		35,478		—		13,298		2,359		87,985		5,922,985
Automobile		2,024,526		25,322		—		—		—		14,100		2,063,948
Other		2,921,142		28,407		3,932		17,570		—		15,735		2,986,786
Total	$	65,332,727		474,980		236,621		80,110		184,018		790,586		67,099,042
December 31, 2014
Commercial, financial, leasing, etc.	$	19,228,265		37,246		1,805		6,231		10,300		177,445		19,461,292
Real estate:
Commercial		22,208,491		118,704		22,170		14,662		51,312		141,600		22,556,939
Residential builder and developer		1,273,607		11,827		492		9,350		98,347		71,517		1,465,140
Other commercial construction		3,484,932		17,678		—		—		17,181		25,699		3,545,490
Residential		7,640,368		226,932		216,489		35,726		18,223		180,275		8,318,013
Residential Alt-A		249,810		11,774		—		—		—		77,704		339,288
Consumer:
Home equity lines and loans		5,859,378		42,945		—		27,896		2,374		89,291		6,021,884
Automobile		1,931,138		30,500		—		133		—		17,578		1,979,349
Other		2,909,791		33,295		4,064		16,369		—		18,042		2,981,561
Total	$	64,785,780		530,901		245,020		110,367		197,737		799,151		66,668,956

(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 held for sale were $423 million and $435 million at March 31, 2015 and December 31, 2014, respectively. Commercial mortgage loans held for sale were $117 million at March 31, 2015 and $308 million at December 31, 2014.

Changes in the allowance for credit losses for the three months ended March 31, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	288,038			307,927			61,910			186,033			75,654		919,562
Provision for credit losses		1,442			15,542			960			19,574			482		38,000
Net charge-offs
Charge-offs		(12,350	)		(6,679	)		(3,118	)		(25,329	)		—		(47,476	)
Recoveries		3,939			585			989			5,774			—		11,287
Net charge-offs		(8,411	)		(6,094	)		(2,129	)		(19,555	)		—		(36,189	)
Ending balance	$	281,069			317,375			60,741			186,052			76,136		921,373

Changes in the allowance for credit losses for the three months ended March 31, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				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		12,598			116			4,228			14,141			917		32,000
Net charge-offs
Charge-offs		(14,809	)		(3,486	)		(7,453	)		(21,691	)		—		(47,439	)
Recoveries		5,663			3,197			1,631			5,040			—		15,531
Net charge-offs		(9,146	)		(289	)		(5,822	)		(16,651	)		—		(31,908	)
Ending balance	$	276,835			324,805			77,062			162,134			75,932		916,768

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 loans 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 real estate 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 March 31, 2015 and December 31, 2014 and for the three month periods ended March 31, 2015 and 2014.

	March 31, 2015						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	108,870		130,029		19,335		132,340		165,146		31,779
Real estate:
Commercial		99,729		122,098		15,836		83,955		96,209		14,121
Residential builder and developer		6,512		8,731		591		17,632		22,044		805
Other commercial construction		5,116		6,084		831		5,480		6,484		900
Residential		86,691		104,630		4,405		88,970		107,343		4,296
Residential Alt-A		97,984		110,835		11,000		101,137		114,565		11,000
Consumer:
Home equity lines and loans		19,701		20,794		6,304		19,771		20,806		6,213
Automobile		27,122		27,122		6,983		30,317		30,317		8,070
Other		18,814		18,814		5,297		18,973		18,973		5,459
		470,539		549,137		70,582		498,575		581,887		82,643
With no related allowance recorded:
Commercial, financial, leasing, etc.		116,325		135,534		—		73,978		81,493		—
Real estate:
Commercial		51,734		59,235		—		66,777		78,943		—
Residential builder and developer		62,611		101,964		—		58,820		96,722		—
Other commercial construction		19,657		40,072		—		20,738		41,035		—
Residential		17,203		27,886		—		16,815		26,750		—
Residential Alt-A		24,785		43,635		—		26,752		46,964		—
		292,315		408,326		—		263,880		371,907		—
Total:
Commercial, financial, leasing, etc.		225,195		265,563		19,335		206,318		246,639		31,779
Real estate:
Commercial		151,463		181,333		15,836		150,732		175,152		14,121
Residential builder and developer		69,123		110,695		591		76,452		118,766		805
Other commercial construction		24,773		46,156		831		26,218		47,519		900
Residential		103,894		132,516		4,405		105,785		134,093		4,296
Residential Alt-A		122,769		154,470		11,000		127,889		161,529		11,000
Consumer:
Home equity lines and loans		19,701		20,794		6,304		19,771		20,806		6,213
Automobile		27,122		27,122		6,983		30,317		30,317		8,070
Other		18,814		18,814		5,297		18,973		18,973		5,459
Total	$	762,854		957,463		70,582		762,455		953,794		82,643

	Three months ended March 31, 2015						Three months ended March 31, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	214,618		604		604		134,306		548		548
Real estate:
Commercial		153,070		1,102		1,102		185,425		926		926
Residential builder and developer		73,151		63		63		101,253		74		74
Other commercial construction		25,540		55		55		87,292		1,087		1,087
Residential		104,490		1,446		910		174,168		1,400		902
Residential Alt-A		125,654		1,610		647		139,651		1,626		559
Consumer:
Home equity lines and loans		19,683		201		48		15,676		121		29
Automobile		29,013		450		54		39,383		625		87
Other		18,861		174		33		17,700		174		52
Total	$	764,080		5,705		3,516		894,854		6,581		4,264

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 loans 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 loans and commercial real estate loans.

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
March 31, 2015
Pass	$	18,880,311		21,755,661		1,522,471		3,466,705
Criticized accrual		699,780		676,092		43,421		149,763
Criticized nonaccrual		195,403		142,007		65,310		24,280
Total	$	19,775,494		22,573,760		1,631,202		3,640,748
December 31, 2014
Pass	$	18,695,440		21,837,022		1,347,778		3,347,522
Criticized accrual		588,407		578,317		45,845		172,269
Criticized nonaccrual		177,445		141,600		71,517		25,699
Total	$	19,461,292		22,556,939		1,465,140		3,545,490

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 any first lien position prior to recovering amounts on a second lien position. 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 carrying value of residential real estate loans and home equity loans and lines of credit for which a partial charge-off has been recognized aggregated $62 million and $20 million, respectively, at March 31, 2015 and $63 million and $18 million, respectively, at December 31, 2014. Residential real estate loans and home equity loans and lines of credit that were more than 150 days past due but did not require a partial charge-off because the net realizable value of the collateral exceeded the outstanding customer balance totaled $24 million and $29 million, respectively, at March 31, 2015 and $27 million and $28 million, respectively, at December 31, 2014.

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, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2015
Individually evaluated for impairment	$	19,335		16,921		14,811		18,584	$	69,651
Collectively evaluated for impairment		258,028		299,262		43,547		166,296		767,133
Purchased impaired		3,706		1,192		2,383		1,172		8,453
Allocated	$	281,069		317,375		60,741		186,052		845,237
Unallocated										76,136
Total									$	921,373
December 31, 2014
Individually evaluated for impairment	$	31,779		15,490		14,703		19,742	$	81,714
Collectively evaluated for impairment		251,607		291,244		45,061		165,140		753,052
Purchased impaired		4,652		1,193		2,146		1,151		9,142
Allocated	$	288,038		307,927		61,910		186,033		843,908
Unallocated										75,654
Total									$	919,562

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

	Commercial, Financial, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2015
Individually evaluated for impairment	$	225,195		244,340		225,364		65,637	$	760,536
Collectively evaluated for impairment		19,540,575		27,446,718		8,261,472		10,905,723		66,154,488
Purchased impaired		9,724		154,652		17,283		2,359		184,018
Total	$	19,775,494		27,845,710		8,504,119		10,973,719	$	67,099,042
December 31, 2014
Individually evaluated for impairment	$	206,318		252,347		232,398		69,061	$	760,124
Collectively evaluated for impairment		19,244,674		27,148,382		8,406,680		10,911,359		65,711,095
Purchased impaired		10,300		166,840		18,223		2,374		197,737
Total	$	19,461,292		27,567,569		8,657,301		10,982,794	$	66,668,956

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 March 31, 2015 and 2014:

			Recorded investment				Financial effects of modification
Three months ended March 31, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
			(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		21	$	1,572	$	1,557	$	(15	)	$	—
Interest rate reduction		1		99		99		—			(19	)
Combination of concession types		3		9,155		6,989		(2,166	)		—
Real estate:
Commercial
Principal deferral		7		3,792		3,776		(16	)		—
Combination of concession types		4		1,646		1,637		(9	)		(52	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Residential
Principal deferral		7		721		742		21			—
Combination of concession types		3		294		349		55			(34	)
Residential Alt-A
Combination of concession types		1		210		210		—			(4	)
Consumer:
Home equity lines and loans
Principal deferral		1		21		21		—			—
Combination of concession types		5		196		196		—			(13	)
Automobile
Principal deferral		35		303		303		—			—
Interest rate reduction		3		42		42		—			(3	)
Other		10		20		20		—			—
Combination of concession types		8		84		84		—			(7	)
Other
Principal deferral		22		296		296		—			—
Other		5		59		59		—			—
Combination of concession types		13		224		224		—			(25	)
Total		150	$	20,132	$	18,002	$	(2,130	)	$	(157	)

(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.

Three months ended March 31, 2014	Number		Recorded investment				Financial effects of modification
			Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		30	$	14,954	$	14,848	$	(106	)	$	—
Combination of concession types		2		41		39		(2	)		(4	)
Real estate:
Commercial
Principal deferral		13		7,044		7,002		(42	)		—
Combination of concession types		1		346		401		55			(104	)
Other commercial construction
Principal deferral		1		151		151		—			—
Residential
Principal deferral		13		1,602		1,663		61			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		14		2,188		2,160		(28	)		(282	)
Residential Alt-A
Principal deferral		2		166		202		36			—
Combination of concession types		10		1,746		1,736		(10	)		(61	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Combination of concession types		15		1,856		1,856		—			(172	)
Automobile
Principal deferral		80		993		993		—			—
Other		11		61		61		—			—
Combination of concession types		23		250		250		—			(26	)
Other
Principal deferral		8		55		55		—			—
Other		1		45		45		—			—
Combination of concession types		14		466		466		—			(188	)
Total		243	$	32,530	$	32,500	$	(30	)	$	(869	)

(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 March 31, 2015 and 2014 and for which there was a subsequent payment default during the three-month periods ended March 31, 2015 and 2014, respectively, were not material.

Effective January 1, 2015, the Company adopted 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 adoption resulted in an insignificant increase in other real estate owned. The amount of foreclosed residential real estate property held by the Company was $42 million and $44 million at March 31, 2015 and December 31, 2014, respectively. At March 31, 2015, there were $158 million in loans secured by residential real estate that were in the process of foreclosure.

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Investment securities

3 Months Ended

Mar. 31, 2015

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)
March 31, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,672		1,563		1	$	163,234
Obligations of states and political subdivisions		7,704		199		53		7,850
Mortgage-backed securities:
Government issued or guaranteed		10,008,191		265,739		8,709		10,265,221
Privately issued		96		2		3		95
Collateralized debt obligations		29,704		19,360		1,786		47,278
Other debt securities		138,366		1,909		19,002		121,273
Equity securities		79,987		18,999		437		98,549
		10,425,720		307,771		29,991		10,703,500
Investment securities held to maturity:
Obligations of states and political subdivisions		148,698		2,178		350		150,526
Mortgage-backed securities:
Government issued or guaranteed		3,007,420		88,417		4,024		3,091,813
Privately issued		197,509		1,421		36,620		162,310
Other debt securities		7,185		—		—		7,185
		3,360,812		92,016		40,994		3,411,834
Other securities		328,958		—		—		328,958
Total	$	14,115,490		399,787		70,985	$	14,444,292
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	161,408		544		5	$	161,947
Obligations of states and political subdivisions		8,027		224		53		8,198
Mortgage-backed securities:
Government issued or guaranteed		8,507,571		223,889		337		8,731,123
Privately issued		104		2		3		103
Collateralized debt obligations		30,073		21,276		1,033		50,316
Other debt securities		138,240		1,896		18,648		121,488
Equity securities		73,901		11,020		1,164		83,757
		8,919,324		258,851		21,243		9,156,932
Investment securities held to maturity:
Obligations of states and political subdivisions		148,961		2,551		189		151,323
Mortgage-backed securities:
Government issued or guaranteed		3,149,320		78,485		7,000		3,220,805
Privately issued		201,733		1,143		44,576		158,300
Other debt securities		7,854		—		—		7,854
		3,507,868		82,179		51,765		3,538,282
Other securities		328,742		—		—		328,742
Total	$	12,755,934		341,030		73,008	$	13,023,956

There were no significant gross realized gains or losses from sales of investment securities for the quarters ended March 31, 2015 and 2014.

At March 31, 2015, 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	$	9,059		9,117
Due after one year through five years		163,114		165,027
Due after five years through ten years		3,272		3,314
Due after ten years		162,001		162,177
		337,446		339,635
Mortgage-backed securities available for sale		10,008,287		10,265,316
	$	10,345,733		10,604,951
Debt securities held to maturity:
Due in one year or less	$	27,663		27,865
Due after one year through five years		87,320		88,357
Due after five years through ten years		33,715		34,304
Due after ten years		7,185		7,185
		155,883		157,711
Mortgage-backed securities held to maturity		3,204,929		3,254,123
	$	3,360,812		3,411,834

A summary of investment securities that as of March 31, 2015 and December 31, 2014 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)
March 31, 2015
Investment securities available for sale:
U.S. Treasury and federal agencies	$	4,681		(1	)		—		—
Obligations of states and political subdivisions		986		(4	)		1,524		(49	)
Mortgage-backed securities:
Government issued or guaranteed		1,603,068		(8,597	)		4,138		(112	)
Privately issued		—		—			59		(3	)
Collateralized debt obligations		6,091		(1,255	)		5,220		(531	)
Other debt securities		12,689		(443	)		92,304		(18,559	)
Equity securities		374		(437	)		—		—
		1,627,889		(10,737	)		103,245		(19,254	)
Investment securities held to maturity:
Obligations of states and political subdivisions		35,272		(317	)		1,802		(33	)
Mortgage-backed securities:
Government issued or guaranteed		16,660		(85	)		266,979		(3,939	)
Privately issued		—		—			131,779		(36,620	)
		51,932		(402	)		400,560		(40,592	)
Total	$	1,679,821		(11,139	)		503,805		(59,846	)
December 31, 2014
Investment securities available for sale:
U.S. Treasury and federal agencies	$	6,505		(5	)		—		—
Obligations of states and political subdivisions		1,785		(52	)		121		(1	)
Mortgage-backed securities:
Government issued or guaranteed		39,001		(186	)		5,555		(151	)
Privately issued		—		—			65		(3	)
Collateralized debt obligations		2,108		(696	)		5,512		(337	)
Other debt securities		14,017		(556	)		92,661		(18,092	)
Equity securities		2,138		(1,164	)		—		—
		65,554		(2,659	)		103,914		(18,584	)
Investment securities held to maturity:
Obligations of states and political subdivisions		29,886		(184	)		268		(5	)
Mortgage-backed securities:
Government issued or guaranteed		137,413		(361	)		446,780		(6,639	)
Privately issued		—		—			127,512		(44,576	)
		167,299		(545	)		574,560		(51,220	)
Total	$	232,853		(3,204	)		678,474		(69,804	)

The Company owned 294 individual investment securities with aggregate gross unrealized losses of $71 million at March 31, 2015. Based on a review of each of the securities in the investment securities portfolio at March 31, 2015, the Company concluded that it expected to recover the amortized cost basis of its investment. As of March 31, 2015, 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 March 31, 2015, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $329 million of cost method investment securities.

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

3 Months Ended

Mar. 31, 2015

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 $43 million at March 31, 2015.

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 $4.6 billion and $4.8 billion at March 31, 2015 and December 31, 2014, respectively. Revenues from those servicing rights were $6 million and $7 million during the three-month periods ended March 31, 2015 and 2014, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances totaling $39.5 billion and $41.3 billion at March 31, 2015 and December 31, 2014, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $35 million and $26 million for the three-month periods ended March 31, 2015 and 2014, respectively. In addition, the Company held $198 million and $202 million of mortgage-backed securities in its held-to-maturity portfolio at March 31, 2015 and December 31, 2014, respectively, that were securitized by Bayview Financial.

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Variable interest entities and asset securitizations

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Variable interest entities and asset securitizations

11. Variable interest entities and asset securitizations

During the first quarter of 2015, the Company securitized approximately $13 million of one-to-four family residential real estate loans that had been originated for sale in guaranteed mortgage securitizations with the Government National Mortgage Association (“Ginnie Mae”) and retained the resulting securities in its investment securities portfolio. In similar transactions for the three months ended March 31, 2014, the Company securitized $29 million of one-to-four family residential real estate loans. Gains associated with those transactions were not significant.

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 March 31, 2015 and December 31, 2014, the carrying values of the loans in the securitization trust were $93 million and $98 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 March 31, 2015 and December 31, 2014 was $14 million and $15 million, respectively. Because the transaction was non-recourse, the Company’s maximum exposure to loss as a result of its association with the trust at March 31, 2015 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 March 31, 2015 and December 31, 2014, 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 Capital Securities described in note 5.

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.2 billion at March 31, 2015 and December 31, 2014. 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 on its investments in such partnerships was $303 million, including $88 million of unfunded commitments, at March 31, 2015 and $243 million, including $56 million of unfunded commitments, at December 31, 2014. Contingent commitments to provide additional capital contributions to these partnerships were not material at March 31, 2015. 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 a 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. As described in note 1, effective January 1, 2015 the Company retrospectively adopted for all periods presented amended accounting guidance on the accounting for investments in qualified affordable housing projects whereby the Company’s investment cost is amortized to income taxes in the consolidated statement of income as tax credits and other tax benefits resulting from deductible losses associated with the projects are received. The Company amortized $10 million and $12 million of its investments in qualified affordable housing projects to income tax expense during the three-month periods ended March 31, 2015 and 2014, respectively, and recognized $14 million and $17 million of tax credits and other tax benefits during those respective periods.

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Pension plans and other postretirement benefits

3 Months Ended

Mar. 31, 2015

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 benefit cost for defined benefit plans consisted of the following:

	Pension benefits						Other postretirement benefits
	Three months ended March 31
	2015			2014			2015			2014
	(in thousands)
Service cost	$	6,000			5,100			200			150
Interest cost on projected benefit obligation		17,775			17,250			650			675
Expected return on plan assets		(23,575	)		(22,925	)		—			—
Amortization of prior service credit		(1,525	)		(1,650	)		(350	)		(350	)
Amortization of net actuarial loss		11,175			3,350			25			—
Net periodic benefit cost	$	9,850			1,125			525			475

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $16,750,000 and $15,732,000 for the three months ended March 31, 2015 and 2014, respectively.

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Earnings Per Common Share - Additional Information (Detail) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	2.7	3.0

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Borrowings

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Borrowings

5. Borrowings

During February 2015, M&T Bank issued $1.5 billion of fixed rate senior notes pursuant to a Bank Note Program, of which $750 million have a 2.10% interest rate and mature in 2020 and $750 million have a 2.90% interest rate and mature in 2025.

M&T had $836 million of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at March 31, 2015 that are held by various trusts and 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.

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 April 15, 2015, M&T redeemed all of the issued and outstanding Capital Securities issued by M&T Capital Trust I, M&T Capital Trust II and M&T Capital Trust III, and the related Junior Subordinated Debentures held by those respective trusts. In the aggregate, $323 million of Junior Subordinated Debentures were redeemed. In February 2014, M&T redeemed all of the issued and outstanding 8.5% $350 million Capital 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 March 31, 2015 and December 31, 2014. The agreements reflect various repurchase dates in 2016 and 2017 and 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 consisting primarily of government guaranteed mortgage-backed securities of $1.5 billion at each of March 31, 2015 and December 31, 2014.

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Shareholders' equity

3 Months Ended

Mar. 31, 2015

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 as of March 31, 2015 and December 31, 2014 is presented below:

	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
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		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
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, are paid at 6.375%. Warrants to purchase M&T common stock at $73.86 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 719,175 at March 31, 2015 and 721,490 at December 31, 2014.

(b) Dividends, if declared, are 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 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are 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 (“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 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A 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 March 31, 2015 and December 31, 2014. The obligation under that warrant was assumed by M&T in an acquisition.

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Earnings per common share

3 Months Ended

Mar. 31, 2015

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 March 31
	2015			2014
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	241,613			229,017
Less: Preferred stock dividends (a)		(20,318	)		(14,674	)
Net income available to common equity		221,295			214,343
Less: Income attributable to unvested stock-based compensation awards		(2,465	)		(2,623	)
Net income available to common shareholders	$	218,830			211,720
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		133,542			131,800
Less: Unvested stock-based compensation awards		(1,493	)		(1,588	)
Weighted-average shares outstanding		132,049			130,212
Basic earnings per common share	$	1.66			1.63

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

The computations of diluted earnings per common share follow:

	Three months ended March 31
	2015			2014
	(in thousands, except per share)
Net income available to common equity	$	221,295			214,343
Less: Income attributable to unvested stock-based compensation awards		(2,458	)		(2,612	)
Net income available to common shareholders	$	218,837			211,731
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		133,542			131,800
Less: Unvested stock-based compensation awards		(1,493	)		(1,588	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards		720			914
Adjusted weighted-average shares outstanding		132,769			131,126
Diluted earnings per common share	$	1.65			1.61

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 2.7 million and 3.0 million common shares during the three-month periods ended March 31, 2015 and 2014, 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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Derivative Financial Instruments - Information about Interest Rate Swap Agreements (Detail) (Fixed Rate Long-Term Borrowings [Member], Fair Value Hedges [Member], USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Fixed Rate Long-Term Borrowings [Member] | Fair Value Hedges [Member]
Derivative [Line Items]
Notional Amount	$ 1,400,000,000	$ 1,400,000,000
Average Maturity (in years)	2 years 4 months 24 days	2 years 8 months 12 days
Weighted-Average Rate, Fixed	4.42%	4.42%
Weighted-Average Rate, Variable	1.22%	1.19%

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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
	Mar. 31, 2015	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	$ 493	$ (5,332)
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	660	(302)
Foreign Exchange and Other Option and Futures Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	(167)	(5,030)
Interest Rate Swap Agreements [Member] | Fixed Rate Long-Term Borrowings [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives in fair value hedging relationships, Derivatives	(396)	(8,160)
Derivatives in fair value hedging relationships, Hedged item	$ 161	$ 7,920

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Derivative Financial Instruments - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Derivative [Line Items]
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		$ 28,000,000
Aggregate fair value of derivative financial instruments in a liability position	174,000,000		161,000,000
Net liability positions with counterparties	114,000,000		103,000,000
Post collateral requirements relating to positions	102,000,000		90,000,000
Aggregate fair value of derivative financial instruments in asset position	106,000,000		104,000,000
Net asset positions with counterparties	46,000,000		46,000,000
Counterparties posted collateral relating to positions	47,000,000		46,000,000
Clearinghouse Credit Facilities [Member]
Derivative [Line Items]
Post collateral requirements relating to positions	97,000,000		61,000,000
Net fair value of derivative instruments, liability portion	65,000,000		35,000,000
Credit Risk Derivative [Member]
Derivative [Line Items]
Aggregate fair value of derivative financial instruments in a net liability position	22,000,000
Fair value of collateral already posted for derivative financial instruments	15,000,000
Fair value of additional collateral to be posted for derivative financial instruments	7,000,000
Interest Rate Swap Agreements [Member]
Derivative [Line Items]
Increase in net interest income due to interest rate swap agreements	11,000,000	11,000,000
Interest Rate Contracts [Member]
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading purposes	17,100,000,000		17,600,000,000
Foreign Currency and Other Option and Futures Contracts [Member]
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading purposes	$ 1,400,000,000		$ 1,300,000,000

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Segment information (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Summary of prior period financial information restated

 As a result of the changes, prior period financial information has been restated to provide segment information on a comparable basis, as noted below:

	Three months ended March 31, 2014
	Net income (loss) as previously reported			Impact of changes			Net income (loss) as restated
	(in thousands)
Business Banking	$	28,598			(3,625	)		24,973
Commercial Banking		99,765			(924	)		98,841
Commercial Real Estate		74,561			(2,009	)		72,552
Discretionary Portfolio		11,279			81			11,360
Residential Mortgage Banking		19,411			(831	)		18,580
Retail Banking		29,711			39,323			69,034
All Other		(34,308	)		(32,015	)		(66,323	)
Total	$	229,017			—			229,017

Information about Company's Segments

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

	Three months ended March 31
	2015								2014
	Total revenues (a)		Inter- segment revenues			Net income (loss)			Total revenues (a)		Inter- segment revenues			Net income (loss)
	(in thousands)
Business Banking	$	108,560		1,045			24,811		$	111,770		1,057			24,973
Commercial Banking		246,581		1,085			96,423			249,349		1,197			98,841
Commercial Real Estate		163,320		82			80,086			157,323		348			72,552
Discretionary Portfolio		15,474		(5,443	)		5,954			24,657		(5,039	)		11,360
Residential Mortgage Banking		111,458		11,387			31,965			93,765		9,748			18,580
Retail Banking		300,391		3,137			68,888			306,780		3,505			69,034
All Other		154,007		(11,293	)		(66,514	)		132,896		(10,816	)		(66,323	)
Total	$	1,099,791		—			241,613		$	1,076,540		—			229,017

Summary of Segment Information

Average total assets
	Three months ended March 31				Year ended December 31
	2015		2014		2014
	(in millions)
Business Banking	$	5,300		5,242		5,281
Commercial Banking		23,683		22,523		22,892
Commercial Real Estate		18,019		16,937		17,113
Discretionary Portfolio		22,714		18,581		20,798
Residential Mortgage Banking		3,512		3,157		3,333
Retail Banking		10,788		10,155		10,449
All Other		11,876		10,070		12,277
Total	$	95,892		86,665		92,143

(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 $5,838,000 and $5,945,000 for the three-month periods ended March 31, 2015 and 2014, 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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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
	Mar. 31, 2015 Modification	Mar. 31, 2014 Modification
Financing Receivable, Modifications [Line Items]
Number of modifications	150	243
Pre-modification, Recorded Investment	$ 20,132	$ 32,530
Post-modification, Recorded investment	18,002	32,500
Financial effects of modification, Recorded investment	(2,130)	(30)
Financial Effects of Modification, Interest	(157)	(869)
Principal Deferral [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	21	30
Pre-modification, Recorded Investment	1,572	14,954
Post-modification, Recorded investment	1,557	14,848
Financial effects of modification, Recorded investment	(15)	(106)
Principal Deferral [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	7	13
Pre-modification, Recorded Investment	3,792	7,044
Post-modification, Recorded investment	3,776	7,002
Financial effects of modification, Recorded investment	(16)	(42)
Principal Deferral [Member] | Other Commercial Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		1
Pre-modification, Recorded Investment		151
Post-modification, Recorded investment		151
Principal Deferral [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	7	13
Pre-modification, Recorded Investment	721	1,602
Post-modification, Recorded investment	742	1,663
Financial effects of modification, Recorded investment	21	61
Principal Deferral [Member] | Residential Alt-A [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		2
Pre-modification, Recorded Investment		166
Post-modification, Recorded investment		202
Financial effects of modification, Recorded investment		36
Principal Deferral [Member] | Home Equity Lines and Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1	3
Pre-modification, Recorded Investment	21	280
Post-modification, Recorded investment	21	280
Principal Deferral [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	35	80
Pre-modification, Recorded Investment	303	993
Post-modification, Recorded investment	303	993
Principal Deferral [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	22	8
Pre-modification, Recorded Investment	296	55
Post-modification, Recorded investment	296	55
Principal Deferral [Member] | Residential Builder and Developer [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1
Pre-modification, Recorded Investment	1,398
Post-modification, Recorded investment	1,398
Interest Rate Reduction [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1
Pre-modification, Recorded Investment	99
Post-modification, Recorded investment	99
Financial Effects of Modification, Interest	(19)
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] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3
Pre-modification, Recorded Investment	42
Post-modification, Recorded investment	42
Financial Effects of Modification, Interest	(3)
Other [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications		1
Pre-modification, Recorded Investment		188
Post-modification, Recorded investment		188
Other [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	10	11
Pre-modification, Recorded Investment	20	61
Post-modification, Recorded investment	20	61
Other [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	5	1
Pre-modification, Recorded Investment	59	45
Post-modification, Recorded investment	59	45
Combination of Concession Types [Member] | Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	2
Pre-modification, Recorded Investment	9,155	41
Post-modification, Recorded investment	6,989	39
Financial effects of modification, Recorded investment	(2,166)	(2)
Financial Effects of Modification, Interest		(4)
Combination of Concession Types [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	4	1
Pre-modification, Recorded Investment	1,646	346
Post-modification, Recorded investment	1,637	401
Financial effects of modification, Recorded investment	(9)	55
Financial Effects of Modification, Interest	(52)	(104)
Combination of Concession Types [Member] | Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	3	14
Pre-modification, Recorded Investment	294	2,188
Post-modification, Recorded investment	349	2,160
Financial effects of modification, Recorded investment	55	(28)
Financial Effects of Modification, Interest	(34)	(282)
Combination of Concession Types [Member] | Residential Alt-A [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	1	10
Pre-modification, Recorded Investment	210	1,746
Post-modification, Recorded investment	210	1,736
Financial effects of modification, Recorded investment		(10)
Financial Effects of Modification, Interest	(4)	(61)
Combination of Concession Types [Member] | Home Equity Lines and Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	5	15
Pre-modification, Recorded Investment	196	1,856
Post-modification, Recorded investment	196	1,856
Financial Effects of Modification, Interest	(13)	(172)
Combination of Concession Types [Member] | Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	8	23
Pre-modification, Recorded Investment	84	250
Post-modification, Recorded investment	84	250
Financial Effects of Modification, Interest	(7)	(26)
Combination of Concession Types [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications	13	14
Pre-modification, Recorded Investment	224	466
Post-modification, Recorded investment	224	466
Financial Effects of Modification, Interest	$ (25)	$ (188)

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Commitments and contingencies

3 Months Ended

Mar. 31, 2015

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.

	March 31, 2015		December 31, 2014
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,219,783		6,194,516
Commercial real estate loans to be sold		346,664		212,257
Other commercial real estate and construction		5,161,878		4,834,699
Residential real estate loans to be sold		661,132		432,352
Other residential real estate		581,384		524,399
Commercial and other		11,493,613		11,080,856
Standby letters of credit		3,648,095		3,706,888
Commercial letters of credit		42,291		46,965
Financial guarantees and indemnification contracts		2,535,609		2,490,050
Commitments to sell real estate loans		1,322,998		1,237,294

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 $2.4 billion at each of March 31, 2015 and December 31, 2014.

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 market value.

The Company also has commitments under long-term operating leases.

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 March 31, 2015, 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 further losses 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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Loans and leases and the allowance for credit losses (Tables)

3 Months Ended

Mar. 31, 2015

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 that is included in the consolidated balance sheet were as follows:

	March 31, 2015		December 31, 2014
	(in thousands)
Outstanding principal balance	$	2,837,256		3,070,268
Carrying amount:
Commercial, financial, leasing, etc.		207,884		247,820
Commercial real estate		869,700		961,828
Residential real estate		434,454		453,360
Consumer		888,985		933,537
	$	2,401,023		2,596,545

Summary of Changes in Accretable Yield for Acquired Loans

A summary of changes in the accretable yield for acquired loans for the three-month periods ended March 31, 2015 and 2014 follows:

	Three months ended March 31, 2015
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	76,518			397,379			473,897
Interest income		(5,206	)		(41,277	)		(46,483	)
Reclassifications from nonaccretable balance, net		110			183			293
Other (a)		—			1,610			1,610
Balance at end of period	$	71,422			357,895			429,317

	Three months ended March 31, 2014
	Purchased impaired			Other acquired			Total
	(in thousands)
Balance at beginning of period	$	37,230			538,633			575,863
Interest income		(6,328	)		(52,633	)		(58,961	)
Reclassifications from nonaccretable balance, net		37			—			37
Other (a)		—			(838	)		(838	)
Balance at end of period	$	30,939			485,162			516,101

(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 March 31, 2015 and December 31, 2014 were as 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)
March 31, 2015
Commercial, financial, leasing, etc.	$	19,519,566		43,213		4,265		3,323		9,724		195,403		19,775,494
Real estate:
Commercial		22,225,088		116,465		27,261		17,187		45,752		142,007		22,573,760
Residential builder and developer		1,460,981		6,119		—		6,953		91,839		65,310		1,631,202
Other commercial construction		3,575,578		18,244		3,864		1,721		17,061		24,280		3,640,748
Residential		7,580,514		189,901		197,299		20,058		17,283		171,496		8,176,551
Residential Alt-A		241,467		11,831		—		—		—		74,270		327,568
Consumer:
Home equity lines and loans		5,783,865		35,478		—		13,298		2,359		87,985		5,922,985
Automobile		2,024,526		25,322		—		—		—		14,100		2,063,948
Other		2,921,142		28,407		3,932		17,570		—		15,735		2,986,786
Total	$	65,332,727		474,980		236,621		80,110		184,018		790,586		67,099,042
December 31, 2014
Commercial, financial, leasing, etc.	$	19,228,265		37,246		1,805		6,231		10,300		177,445		19,461,292
Real estate:
Commercial		22,208,491		118,704		22,170		14,662		51,312		141,600		22,556,939
Residential builder and developer		1,273,607		11,827		492		9,350		98,347		71,517		1,465,140
Other commercial construction		3,484,932		17,678		—		—		17,181		25,699		3,545,490
Residential		7,640,368		226,932		216,489		35,726		18,223		180,275		8,318,013
Residential Alt-A		249,810		11,774		—		—		—		77,704		339,288
Consumer:
Home equity lines and loans		5,859,378		42,945		—		27,896		2,374		89,291		6,021,884
Automobile		1,931,138		30,500		—		133		—		17,578		1,979,349
Other		2,909,791		33,295		4,064		16,369		—		18,042		2,981,561
Total	$	64,785,780		530,901		245,020		110,367		197,737		799,151		66,668,956

(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 March 31, 2015 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				Commercial			Residential			Consumer			Unallocated		Total
	(in thousands)
Beginning balance	$	288,038			307,927			61,910			186,033			75,654		919,562
Provision for credit losses		1,442			15,542			960			19,574			482		38,000
Net charge-offs
Charge-offs		(12,350	)		(6,679	)		(3,118	)		(25,329	)		—		(47,476	)
Recoveries		3,939			585			989			5,774			—		11,287
Net charge-offs		(8,411	)		(6,094	)		(2,129	)		(19,555	)		—		(36,189	)
Ending balance	$	281,069			317,375			60,741			186,052			76,136		921,373

Changes in the allowance for credit losses for the three months ended March 31, 2014 were as follows:

	Commercial, Financial, Leasing, etc.			Real Estate
				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		12,598			116			4,228			14,141			917		32,000
Net charge-offs
Charge-offs		(14,809	)		(3,486	)		(7,453	)		(21,691	)		—		(47,439	)
Recoveries		5,663			3,197			1,631			5,040			—		15,531
Net charge-offs		(9,146	)		(289	)		(5,822	)		(16,651	)		—		(31,908	)
Ending balance	$	276,835			324,805			77,062			162,134			75,932		916,768

Impaired Loans and Leases

The following tables provide information with respect to loans and leases that were considered impaired as of March 31, 2015 and December 31, 2014 and for the three month periods ended March 31, 2015 and 2014.

	March 31, 2015						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(in thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	108,870		130,029		19,335		132,340		165,146		31,779
Real estate:
Commercial		99,729		122,098		15,836		83,955		96,209		14,121
Residential builder and developer		6,512		8,731		591		17,632		22,044		805
Other commercial construction		5,116		6,084		831		5,480		6,484		900
Residential		86,691		104,630		4,405		88,970		107,343		4,296
Residential Alt-A		97,984		110,835		11,000		101,137		114,565		11,000
Consumer:
Home equity lines and loans		19,701		20,794		6,304		19,771		20,806		6,213
Automobile		27,122		27,122		6,983		30,317		30,317		8,070
Other		18,814		18,814		5,297		18,973		18,973		5,459
		470,539		549,137		70,582		498,575		581,887		82,643
With no related allowance recorded:
Commercial, financial, leasing, etc.		116,325		135,534		—		73,978		81,493		—
Real estate:
Commercial		51,734		59,235		—		66,777		78,943		—
Residential builder and developer		62,611		101,964		—		58,820		96,722		—
Other commercial construction		19,657		40,072		—		20,738		41,035		—
Residential		17,203		27,886		—		16,815		26,750		—
Residential Alt-A		24,785		43,635		—		26,752		46,964		—
		292,315		408,326		—		263,880		371,907		—
Total:
Commercial, financial, leasing, etc.		225,195		265,563		19,335		206,318		246,639		31,779
Real estate:
Commercial		151,463		181,333		15,836		150,732		175,152		14,121
Residential builder and developer		69,123		110,695		591		76,452		118,766		805
Other commercial construction		24,773		46,156		831		26,218		47,519		900
Residential		103,894		132,516		4,405		105,785		134,093		4,296
Residential Alt-A		122,769		154,470		11,000		127,889		161,529		11,000
Consumer:
Home equity lines and loans		19,701		20,794		6,304		19,771		20,806		6,213
Automobile		27,122		27,122		6,983		30,317		30,317		8,070
Other		18,814		18,814		5,297		18,973		18,973		5,459
Total	$	762,854		957,463		70,582		762,455		953,794		82,643

Interest Income Recognized on Loans

	Three months ended March 31, 2015						Three months ended March 31, 2014
			Interest income recognized						Interest income recognized
	Average recorded investment		Total		Cash basis		Average recorded investment		Total		Cash basis
	(in thousands)
Commercial, financial, leasing, etc.	$	214,618		604		604		134,306		548		548
Real estate:
Commercial		153,070		1,102		1,102		185,425		926		926
Residential builder and developer		73,151		63		63		101,253		74		74
Other commercial construction		25,540		55		55		87,292		1,087		1,087
Residential		104,490		1,446		910		174,168		1,400		902
Residential Alt-A		125,654		1,610		647		139,651		1,626		559
Consumer:
Home equity lines and loans		19,683		201		48		15,676		121		29
Automobile		29,013		450		54		39,383		625		87
Other		18,861		174		33		17,700		174		52
Total	$	764,080		5,705		3,516		894,854		6,581		4,264

Summary of Loan Grades

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

			Real Estate
	Commercial, Financial, Leasing, etc.		Commercial		Residential Builder and Developer		Other Commercial Construction
	(in thousands)
March 31, 2015
Pass	$	18,880,311		21,755,661		1,522,471		3,466,705
Criticized accrual		699,780		676,092		43,421		149,763
Criticized nonaccrual		195,403		142,007		65,310		24,280
Total	$	19,775,494		22,573,760		1,631,202		3,640,748
December 31, 2014
Pass	$	18,695,440		21,837,022		1,347,778		3,347,522
Criticized accrual		588,407		578,317		45,845		172,269
Criticized nonaccrual		177,445		141,600		71,517		25,699
Total	$	19,461,292		22,556,939		1,465,140		3,545,490

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, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2015
Individually evaluated for impairment	$	19,335		16,921		14,811		18,584	$	69,651
Collectively evaluated for impairment		258,028		299,262		43,547		166,296		767,133
Purchased impaired		3,706		1,192		2,383		1,172		8,453
Allocated	$	281,069		317,375		60,741		186,052		845,237
Unallocated										76,136
Total									$	921,373
December 31, 2014
Individually evaluated for impairment	$	31,779		15,490		14,703		19,742	$	81,714
Collectively evaluated for impairment		251,607		291,244		45,061		165,140		753,052
Purchased impaired		4,652		1,193		2,146		1,151		9,142
Allocated	$	288,038		307,927		61,910		186,033		843,908
Unallocated										75,654
Total									$	919,562

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, Leasing, etc.		Real Estate
			Commercial		Residential		Consumer		Total
	(in thousands)
March 31, 2015
Individually evaluated for impairment	$	225,195		244,340		225,364		65,637	$	760,536
Collectively evaluated for impairment		19,540,575		27,446,718		8,261,472		10,905,723		66,154,488
Purchased impaired		9,724		154,652		17,283		2,359		184,018
Total	$	19,775,494		27,845,710		8,504,119		10,973,719	$	67,099,042
December 31, 2014
Individually evaluated for impairment	$	206,318		252,347		232,398		69,061	$	760,124
Collectively evaluated for impairment		19,244,674		27,148,382		8,406,680		10,911,359		65,711,095
Purchased impaired		10,300		166,840		18,223		2,374		197,737
Total	$	19,461,292		27,567,569		8,657,301		10,982,794	$	66,668,956

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 March 31, 2015 and 2014:

			Recorded investment				Financial effects of modification
Three months ended March 31, 2015	Number		Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
			(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		21	$	1,572	$	1,557	$	(15	)	$	—
Interest rate reduction		1		99		99		—			(19	)
Combination of concession types		3		9,155		6,989		(2,166	)		—
Real estate:
Commercial
Principal deferral		7		3,792		3,776		(16	)		—
Combination of concession types		4		1,646		1,637		(9	)		(52	)
Residential builder and developer
Principal deferral		1		1,398		1,398		—			—
Residential
Principal deferral		7		721		742		21			—
Combination of concession types		3		294		349		55			(34	)
Residential Alt-A
Combination of concession types		1		210		210		—			(4	)
Consumer:
Home equity lines and loans
Principal deferral		1		21		21		—			—
Combination of concession types		5		196		196		—			(13	)
Automobile
Principal deferral		35		303		303		—			—
Interest rate reduction		3		42		42		—			(3	)
Other		10		20		20		—			—
Combination of concession types		8		84		84		—			(7	)
Other
Principal deferral		22		296		296		—			—
Other		5		59		59		—			—
Combination of concession types		13		224		224		—			(25	)
Total		150	$	20,132	$	18,002	$	(2,130	)	$	(157	)

(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.

Three months ended March 31, 2014	Number		Recorded investment				Financial effects of modification
			Pre- modification		Post- modification		Recorded investment (a)			Interest (b)
	(dollars in thousands)
Commercial, financial, leasing, etc.
Principal deferral		30	$	14,954	$	14,848	$	(106	)	$	—
Combination of concession types		2		41		39		(2	)		(4	)
Real estate:
Commercial
Principal deferral		13		7,044		7,002		(42	)		—
Combination of concession types		1		346		401		55			(104	)
Other commercial construction
Principal deferral		1		151		151		—			—
Residential
Principal deferral		13		1,602		1,663		61			—
Interest rate reduction		1		98		104		6			(32	)
Other		1		188		188		—			—
Combination of concession types		14		2,188		2,160		(28	)		(282	)
Residential Alt-A
Principal deferral		2		166		202		36			—
Combination of concession types		10		1,746		1,736		(10	)		(61	)
Consumer:
Home equity lines and loans
Principal deferral		3		280		280		—			—
Combination of concession types		15		1,856		1,856		—			(172	)
Automobile
Principal deferral		80		993		993		—			—
Other		11		61		61		—			—
Combination of concession types		23		250		250		—			(26	)
Other
Principal deferral		8		55		55		—			—
Other		1		45		45		—			—
Combination of concession types		14		466		466		—			(188	)
Total		243	$	32,530	$	32,500	$	(30	)	$	(869	)

(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.

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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	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 69,651	$ 81,714
Allowance for credit losses	767,133	753,052
Allowance for credit losses	921,373	919,562	916,768	916,676
Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	8,453	9,142
Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	845,237	843,908
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	76,136	75,654	75,932	75,015
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	19,335	31,779
Allowance for credit losses	258,028	251,607
Commercial, Financial, Leasing, etc. [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	3,706	4,652
Commercial, Financial, Leasing, etc. [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	281,069	288,038
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	16,921	15,490
Allowance for credit losses	299,262	291,244
Commercial Real Estate [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,192	1,193
Commercial Real Estate [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	317,375	307,927
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	14,811	14,703
Allowance for credit losses	43,547	45,061
Residential Real Estate [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	2,383	2,146
Residential Real Estate [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	60,741	61,910
Consumer Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	18,584	19,742
Allowance for credit losses	166,296	165,140
Consumer Loans [Member] | Purchased Impaired [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	1,172	1,151
Consumer Loans [Member] | Allocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for credit losses	$ 186,052	$ 186,033

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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	Mar. 31, 2015	Dec. 31, 2014
Outstanding principal and carrying value of acquired loans recorded at fair value
Outstanding principal balance	$ 2,837,256	$ 3,070,268
Carrying amount	2,401,023	2,596,545
Commercial, Financial, Leasing, etc. [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	207,884	247,820
Commercial Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	869,700	961,828
Residential Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	434,454	453,360
Consumer [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	$ 888,985	$ 933,537

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Consolidated Statement of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Partners' Capital [Abstract]
Net income	$ 241,613	$ 229,017
Other comprehensive income, net of tax and reclassification adjustments:
Net unrealized gains on investment securities	25,339	38,214
Cash flow hedges adjustments	871
Foreign currency translation adjustment	(2,384)	(136)
Defined benefit plans liability adjustment	4,677	820
Total other comprehensive income	28,503	38,898
Total comprehensive income	$ 270,116	$ 267,915

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Acquisitions

3 Months Ended

Mar. 31, 2015

Business Combinations [Abstract]

Acquisitions

. 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 March 31, 2015 total consideration to be paid was valued at approximately $5.5 billion.

At March 31, 2015, Hudson City had $36.1 billion of assets, including $20.9 billion of loans and $8.3 billion of investment securities, and $31.3 billion of liabilities, including $18.9 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 commenced a major initiative, including the hiring of outside consulting firms, intended to fully address the Federal Reserve Bank’s concerns. On April 3, 2015, M&T was advised that the Federal Reserve Board intends to act on the M&T and Hudson City merger application no later than September 30, 2015. As a result, 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 from April 30, 2015 to October 31, 2015. Nevertheless, there can be no assurances that the merger will be completed by that date.

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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
	Mar. 31, 2015	Mar. 31, 2014
Income available to common shareholders:
Net income	$ 241,613	$ 229,017
Less: Preferred stock dividends	(20,318)	(14,674)
Net income available to common equity	221,295	214,343
Less: Income attributable to unvested stock-based compensation awards	(2,465)	(2,623)
Net income available to common shareholders	$ 218,830	$ 211,720
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	133,542	131,800
Less: Unvested stock-based compensation awards	(1,493)	(1,588)
Weighted-average shares outstanding	132,049	130,212
Basic earnings per common share	$ 1.66	$ 1.63

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Fair Value Measurements - Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	$ 363,085	$ 308,175
Investment securities	10,703,500	9,156,932
Real estate loans held for sale	540,546	742,249
Other assets	101,383	92,129
Total assets	11,708,514	10,299,485
Trading account liabilities	240,168	203,464
Other liabilities	12,146	8,596
Total liabilities	252,314	212,060
U.S. Treasury and Federal Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	163,234	161,947
Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	7,850	8,198
Government Issued or Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	10,265,221	8,731,123
Privately Issued Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	95	103
Collateralized Debt Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	47,278	50,316
Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	121,273	121,488
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	98,549	83,757
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	48,978	51,416
Investment securities	71,804	64,841
Total assets	120,782	116,257
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	71,804	64,841
Significant Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Trading account assets	314,107	256,759
Investment securities	10,584,323	9,041,672
Real estate loans held for sale	540,546	742,249
Other assets	75,088	74,733
Total assets	11,514,064	10,115,413
Trading account liabilities	240,168	203,464
Other liabilities	12,081	8,547
Total liabilities	252,249	212,011
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	163,234	161,947
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	7,850	8,198
Significant Observable Inputs (Level 2) [Member] | Government Issued or Guaranteed [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	10,265,221	8,731,123
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	121,273	121,488
Significant Observable Inputs (Level 2) [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	26,745	18,916
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	47,373	50,419
Other assets	26,295	17,396
Total assets	73,668	67,815
Other liabilities	65	49
Total liabilities	65	49
Significant Unobservable Inputs (Level 3) [Member] | Privately Issued Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities	95	103
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	$ 47,278	$ 50,316

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Shareholders' equity (Tables)

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Issued and Outstanding Preferred Stock

Issued and outstanding preferred stock of M&T as of March 31, 2015 and December 31, 2014 is presented below:

	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
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $1,000 liquidation preference per share		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
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, are paid at 6.375%. Warrants to purchase M&T common stock at $73.86 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 719,175 at March 31, 2015 and 721,490 at December 31, 2014.

(b) Dividends, if declared, are 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 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are 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 (“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 regulatory capital, M&T may redeem all of the shares within 90 days following that occurrence.

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Commitments and Contingencies - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Maximum credit risk for recourse associated with loans sold under Federal National Mortgage Association Delegated Underwriting and Servicing program	$ 2,400,000,000	$ 2,400,000,000
Range of reasonably possible losses, minimum	0
Range of reasonably possible losses, maximum	$ 40,000,000

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Investment Securities - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015 Investment	Mar. 31, 2014	Dec. 31, 2014
Amortized Cost and Fair Value Debt Securities [Abstract]
Gross realized gain or loss on sale of Investment Securities	$ 0	$ 0
Number of investment securities with aggregate gross unrealized losses	294
Unrealized losses on individual investment securities	70,985,000		73,008,000
Cost method investment securities	$ 329,000,000

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Fair value measurements

3 Months Ended

Mar. 31, 2015

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 March 31, 2015.

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 with 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.

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 March 31, 2015 and December 31, 2014. 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 5% to 10%, 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 March 31, 2015, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities were $30 million and $47 million, respectively, and at December 31, 2014 were $30 million and $50 million, respectively. Securities backed by trust preferred securities issued by financial institutions and other entities constituted substantially 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 Level 3 fair value measurements. Internal pricing models used for significant valuation measurements have generally been subjected to validation procedures including review of mathematical constructs, 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 held 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 March 31, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at March 31, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	363,085		48,978		314,107		—
Investment securities available for sale:
U.S. Treasury and federal agencies		163,234		—		163,234		—
Obligations of states and political subdivisions		7,850		—		7,850		—
Mortgage-backed securities:
Government issued or guaranteed		10,265,221		—		10,265,221		—
Privately issued		95		—		—		95
Collateralized debt obligations		47,278		—		—		47,278
Other debt securities		121,273		—		121,273		—
Equity securities		98,549		71,804		26,745		—
		10,703,500		71,804		10,584,323		47,373
Real estate loans held for sale		540,546		—		540,546		—
Other assets (b)		101,383		—		75,088		26,295
Total assets	$	11,708,514		120,782		11,514,064		73,668
Trading account liabilities	$	240,168		—		240,168		—
Other liabilities (b)		12,146		—		12,081		65
Total liabilities	$	252,314		—		252,249		65

	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2015 and the year ended December 31, 2014.

(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 March 31, 2015 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			29,770	(a)
Included in other comprehensive income		—			(2,004	) (d)		—
Settlements		(8	)		(1,034	)		—
Transfers in and/or out of Level 3 (b)		—			—			(20,887	) (c)
Balance – March 31, 2015	$	95		$	47,278		$	26,230
Changes in unrealized gains included in earnings related to assets still held at March 31, 2015	$	—		$	—		$	22,636	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended March 31, 2014 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			22,383	(a)
Included in other comprehensive income		67	(d)		4,646	(d)		—
Settlements		(1,221	)		(5,961	)		—
Transfers in and/or out of Level 3 (b)		—			—			(13,735	) (c)
Balance – March 31, 2014	$	696		$	61,768		$	12,589
Changes in unrealized gains included in earnings related to assets still held at March 31, 2014	$	—		$	—		$	15,050	(a)

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

(b) 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.

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

(d) Reported as net unrealized gains 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 10% to 80% at March 31, 2015. 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 $101 million at March 31, 2015 ($67 million and $34 million of which were classified as Level 2 and Level 3, respectively), $173 million at December 31, 2014 ($94 million and $79 million of which were classified as Level 2 and Level 3, respectively) and $161 million at March 31, 2014 ($100 million and $61 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 March 31, 2015 and 2014 were decreases of $8 million and $15 million for the three-month periods ended March 31, 2015 and 2014, 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 subject to nonrecurring fair value measurement were $11 million at each of March 31, 2015 and March 31, 2014. Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month periods ended March 31, 2015 and 2014.

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 March 31, 2015 and December 31, 2014:

	Fair value at March 31, 2015		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	95	Two independent pricing quotes		—	—
Collateralized debt obligations		47,278	Discounted cash flow		Probability of default	12%-57% (45%)
					Loss severity	100%
Net other assets (liabilities) (a)		26,230	Discounted cash flow		Commitment expirations	0%-96% (19%)
	Fair value at December 31, 2014		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103	Two independent pricing quotes		—	—
Collateralized debt obligations		50,316	Discounted cash flow		Probability of default	12%-57% (36%)
					Loss severity	100%
Net other assets (liabilities) (a)		17,347	Discounted cash flow		Commitment expirations	0%-96% (17%)

(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 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

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

	March 31, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,366,853		$	1,366,853		$	1,311,917	$	54,936		$	—
Interest-bearing deposits at banks		6,291,491			6,291,491			—		6,291,491			—
Trading account assets		363,085			363,085			48,978		314,107			—
Investment securities		14,393,270			14,444,292			71,804		14,162,805			209,683
Loans and leases:
Commercial loans and leases		19,775,494			19,484,920			—		—			19,484,920
Commercial real estate loans		27,845,710			27,746,166			—		117,366			27,628,800
Residential real estate loans		8,504,119			8,609,248			—		5,119,739			3,489,509
Consumer loans		10,973,719			10,880,895			—		—			10,880,895
Allowance for credit losses		(921,373	)		—			—		—			—
Loans and leases, net		66,177,669			66,721,229			—		5,237,105			61,484,124
Accrued interest receivable		244,079			244,079			—		244,079			—
Financial liabilities:
Noninterest-bearing deposits	$	(27,181,120	)	$	(27,181,120	)	$	—	$	(27,181,120	)	$	—
Savings deposits and NOW accounts		(43,288,329	)		(43,288,329	)		—		(43,288,329	)		—
Time deposits		(2,946,126	)		(2,967,329	)		—		(2,967,329	)		—
Deposits at Cayman Islands office		(178,545	)		(178,545	)		—		(178,545	)		—
Short-term borrowings		(193,495	)		(193,495	)		—		(193,495	)		—
Long-term borrowings		(10,509,143	)		(10,641,367	)		—		(10,641,367	)		—
Accrued interest payable		(77,903	)		(77,903	)		—		(77,903	)		—
Trading account liabilities		(240,168	)		(240,168	)		—		(240,168	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	26,230		$	26,230		$	—	$	—		$	26,230
Commitments to sell real estate loans		(9,848	)		(9,848	)		—		(9,848	)		—
Other credit-related commitments		(112,511	)		(112,511	)		—		—			(112,511	)
Interest rate swap agreements used for interest rate risk management		72,855			72,855			—		72,855			—

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management		73,251			73,251			—		73,251			—

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential real estate 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. The following assumptions and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated financial statements.

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.