Earnings per common share

9 Months Ended

Sep. 30, 2016

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
	(in thousands, except per share)
Income available to common shareholders:
Net income	$	349,984			280,401			984,543			808,702
Less: Preferred stock dividends (a)		(20,318	)		(20,318	)		(60,953	)		(60,953	)
Net income available to common equity		329,666			260,083			923,590			747,749
Less: Income attributable to unvested stock-based compensation awards		(2,674	)		(2,746	)		(7,920	)		(8,122	)
Net income available to common shareholders	$	326,992			257,337			915,670			739,627
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		156,767			134,049			158,710			133,805
Less: Unvested stock-based compensation awards		(1,274	)		(1,419	)		(1,374	)		(1,458	)
Weighted-average shares outstanding		155,493			132,630			157,336			132,347
Basic earnings per common share	$	2.10			1.94			5.82			5.59

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

8. Earnings per common share, continued

The computations of diluted earnings per common share follow:

	Three months ended September 30						Nine months ended September 30
	2016			2015			2016			2015
	(in thousands, except per share)
Net income available to common equity	$	329,666			260,083			923,590			747,749
Less: Income attributable to unvested stock-based compensation awards		(2,668	)		(2,737	)		(7,904	)		(8,093	)
Net income available to common shareholders	$	326,998			257,346			915,686			739,656
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		156,767			134,049			158,710			133,805
Less: Unvested stock-based compensation awards		(1,274	)		(1,419	)		(1,374	)		(1,458	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		533			746			507			742
Adjusted weighted-average shares outstanding		156,026			133,376			157,843			133,089
Diluted earnings per common share	$	2.10			1.93			5.80			5.56

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 2.0 million and 1.5 million common shares during the three-month periods ended September 30, 2016 and 2015, respectively, and 2.5 million and 1.9 million common shares during the nine-month periods ended September 30, 2016 and 2015, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.