10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

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

For the quarterly period ended September 30, 2017

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) 635-4000

(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.    ☒  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).     ☒  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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Number of shares of the registrant's Common Stock, $0.50 par value, outstanding as of the close of business on October 31, 2017: 150,515,367  shares.

M&T BANK CORPORATION

FORM 10-Q

For the Quarterly Period Ended September 30, 2017

Table of Contents of Information Required in Report		Page
Part I.  FINANCIAL INFORMATION
Item 1.	Financial Statements.
	CONSOLIDATED BALANCE SHEET - September 30, 2017 and December 31, 2016	3
	CONSOLIDATED STATEMENT OF INCOME - Three and nine months ended September 30, 2017 and 2016	4
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - Three and nine months ended September 30, 2017 and 2016	5
	CONSOLIDATED STATEMENT OF CASH FLOWS - Nine months ended September 30, 2017 and 2016	6
	CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - Nine months ended September 30, 2017 and 2016	7
	NOTES TO FINANCIAL STATEMENTS	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	53
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	90
Item 4.	Controls and Procedures.	90
Part II. OTHER INFORMATION
Item 1.	Legal Proceedings.	90
Item 1A.	Risk Factors.	92
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	92
Item 3.	Defaults Upon Senior Securities.	92
Item 4.	Mine Safety Disclosures.	92
Item 5.	Other Information.	92
Item 6.	Exhibits.	93
SIGNATURES		93

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (Unaudited)

		September 30,			December 31,
Dollars in thousands, except per share		2017			2016
Assets	Cash and due from banks	$	1,368,252			1,320,549
	Interest-bearing deposits at banks		6,306,484			5,000,638
	Trading account		170,516			323,867
	Investment securities (includes pledged securities that can be sold or repledged of    $488,200 at September 30, 2017; $1,203,473 at December 31, 2016)
	Available for sale (cost: $11,369,815 at September 30, 2017;    $13,338,301 at December 31, 2016)		11,416,824			13,332,072
	Held to maturity (fair value: $3,247,954 at September 30, 2017;    $2,451,222 at December 31, 2016)		3,242,124			2,457,278
	Other (fair value: $414,978 at September 30, 2017;    $461,118 at December 31, 2016)		414,978			461,118
	Total investment securities		15,073,926			16,250,468
	Loans and leases		88,171,225			91,101,677
	Unearned discount		(246,091	)		(248,261	)
	Loans and leases, net of unearned discount		87,925,134			90,853,416
	Allowance for credit losses		(1,013,326	)		(988,997	)
	Loans and leases, net		86,911,808			89,864,419
	Premises and equipment		656,713			675,263
	Goodwill		4,593,112			4,593,112
	Core deposit and other intangible assets		78,614			97,655
	Accrued interest and other assets		5,242,379			5,323,235
	Total assets	$	120,401,804			123,449,206
Liabilities	Noninterest-bearing deposits	$	33,111,246			32,813,896
	Savings and interest-checking deposits		52,936,615			52,346,207
	Time deposits		7,233,518			10,131,846
	Deposits at Cayman Islands office		232,014			201,927
	Total deposits		93,513,393			95,493,876
	Federal funds purchased and agreements to repurchase securities		200,768			163,442
	Accrued interest and other liabilities		1,791,946			1,811,431
	Long-term borrowings		8,577,645			9,493,835
	Total liabilities		104,083,752			106,962,584
Shareholders' equity	Preferred stock, $1.00 par, 1,000,000 shares authorized;    Issued and outstanding: Liquidation preference of $1,000 per    share: shares 731,500 at September 30, 2017 and December 31,    2016; Liquidation preference of $10,000 per share: 50,000    shares at September 30, 2017 and December 31, 2016		1,231,500			1,231,500
	Common stock, $.50 par, 250,000,000 shares authorized,    159,819,892 shares issued at September 30, 2017;    159,945,678 shares issued at December 31, 2016		79,910			79,973
	Common stock issuable, 27,019 shares at September 30, 2017;    32,403 shares at December 31, 2016		1,827			2,145
	Additional paid-in capital		6,598,048			6,676,948
	Retained earnings		9,909,415			9,222,488
	Accumulated other comprehensive income (loss), net		(247,915	)		(294,636	)
	Treasury stock — common, at cost — 8,555,636 shares at September 30, 2017;    3,764,742 shares at December 31, 2016		(1,254,733	)		(431,796	)
	Total shareholders’ equity		16,318,052			16,486,622
	Total liabilities and shareholders’ equity	$	120,401,804			123,449,206

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME (Unaudited)

		Three Months Ended September 30				Nine Months Ended September 30
In thousands, except per share		2017		2016		2017			2016
Interest income	Loans and leases, including fees	$	953,662		871,345	$	2,776,340			2,602,208
	Investment securities
	Fully taxable		87,937		84,893		276,057			274,092
	Exempt from federal taxes		345		623		1,154			2,081
	Deposits at banks		14,970		12,354		39,345			33,684
	Other		296		300		760			905
	Total interest income		1,057,210		969,515		3,093,656			2,912,970
Interest expense	Savings and interest-checking deposits		37,714		24,067		93,891			60,906
	Time deposits		13,992		27,886		49,293			79,075
	Deposits at Cayman Islands office		310		204		856			578
	Short-term borrowings		554		169		1,148			3,474
	Long-term borrowings		47,506		58,849		138,874			174,814
	Total interest expense		100,076		111,175		284,062			318,847
	Net interest income		957,134		858,340		2,809,594			2,594,123
	Provision for credit losses		30,000		47,000		137,000			128,000
	Net interest income after provision for credit losses		927,134		811,340		2,672,594			2,466,123
Other income	Mortgage banking revenues		96,737		103,747		267,592			275,193
	Service charges on deposit accounts		109,356		107,935		319,589			314,212
	Trust income		124,900		118,654		371,712			350,181
	Brokerage services income		14,676		15,914		48,677			48,190
	Trading account and foreign exchange gains		7,058		12,754		24,833			33,434
	Gain (loss) on bank investment securities		—		28,480		(17	)		28,748
	Other revenues from operations		106,702		103,866		334,704			310,579
	Total other income		459,429		491,350		1,367,090			1,360,537
Other expense	Salaries and employee benefits		399,089		399,786		1,247,851			1,230,246
	Equipment and net occupancy		75,558		75,263		223,721			225,165
	Outside data processing and software		45,761		42,878		134,637			128,402
	FDIC assessments		23,969		28,459		78,149			76,054
	Advertising and marketing		17,403		21,996		49,837			66,063
	Printing, postage and supplies		8,732		8,972		27,397			30,865
	Amortization of core deposit and other intangible assets		7,808		9,787		24,341			33,524
	Other costs of operations		227,705		165,251		558,579			488,063
	Total other expense		806,025		752,392		2,344,512			2,278,382
	Income before taxes		580,538		550,298		1,695,172			1,548,278
	Income taxes		224,615		200,314		609,269			563,735
	Net income	$	355,923		349,984	$	1,085,903			984,543
	Net income available to common shareholders
	Basic	$	335,801		326,992	$	1,025,011			915,670
	Diluted		335,804		326,998		1,025,023			915,686
	Net income per common share
	Basic	$	2.22		2.10	$	6.71			5.82
	Diluted		2.21		2.10		6.69			5.80
	Cash dividends per common share	$	.75		.70	$	2.25			2.10
	Average common shares outstanding
	Basic		151,347		155,493		152,866			157,336
	Diluted		151,691		156,026		153,293			157,843

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

	Three Months Ended September 30						Nine Months Ended September 30
In thousands	2017			2016			2017			2016
Net income	$	355,923			349,984		$	1,085,903			984,543
Other comprehensive income, net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities		18,258			(17,133	)		33,834			127,331
Cash flow hedges adjustments		(1,120	)		(23	)		(2,098	)		(70	)
Foreign currency translation adjustment		863			(229	)		2,489			(1,847	)
Defined benefit plans liability adjustments		4,165			3,847			12,496			11,654
Total other comprehensive income (loss)		22,166			(13,538	)		46,721			137,068
Total comprehensive income	$	378,089			336,446		$	1,132,624			1,121,611

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

		Nine Months Ended September 30
In thousands		2017			2016
Cash flows from operating    activities	Net income	$	1,085,903			984,543
	Adjustments to reconcile net income to net cash provided by operating activities
	Provision for credit losses		137,000			128,000
	Depreciation and amortization of premises and equipment		84,631			79,911
	Amortization of capitalized servicing rights		41,475			37,979
	Amortization of core deposit and other intangible assets		24,341			33,524
	Provision for deferred income taxes		9,926			109,274
	Asset write-downs		10,878			14,276
	Net gain on sales of assets		(27,967	)		(46,732	)
	Net change in accrued interest receivable, payable		(23,059	)		(13,833	)
	Net change in other accrued income and expense		110,138			113,809
	Net change in loans originated for sale		523,895			(285,824	)
	Net change in trading account assets and liabilities		88,705			(82,837	)
	Net cash provided by operating activities		2,065,866			1,072,090
Cash flows from investing    activities	Proceeds from sales of investment securities
	Available for sale		512,143			61,947
	Other		178,244			94,516
	Proceeds from maturities of investment securities
	Available for sale		1,650,258			1,690,665
	Held to maturity		390,278			459,399
	Purchases of investment securities
	Available for sale		(248,705	)		(1,150,523	)
	Held to maturity		(1,175,608	)		(15,806	)
	Other		(132,104	)		(1,514	)
	Net decrease (increase) in loans and leases		2,259,049			(2,021,004	)
	Net increase in interest-bearing deposits at banks		(1,305,846	)		(3,183,286	)
	Capital expenditures, net		(62,515	)		(65,277	)
	Net decrease in loan servicing advances		47,786			121,226
	Other, net		66,357			11,459
	Net cash provided (used) by investing activities		2,179,337			(3,998,198	)
Cash flows from financing    activities	Net increase (decrease) in deposits		(1,976,237	)		6,195,511
	Net increase (decrease) in short-term borrowings		37,326			(1,886,701	)
	Proceeds from long-term borrowings		2,145,950			—
	Payments on long-term borrowings		(3,029,320	)		(427,035	)
	Purchases of treasury stock		(981,691	)		(604,000	)
	Dividends paid — common		(345,166	)		(333,042	)
	Dividends paid — preferred		(53,842	)		(58,003	)
	Other, net		5,480			3,540
	Net cash provided (used) by financing activities		(4,197,500	)		2,890,270
	Net increase (decrease) in cash and cash equivalents		47,703			(35,838	)
	Cash and cash equivalents at beginning of period		1,320,549			1,368,040
	Cash and cash equivalents at end of period	$	1,368,252			1,332,202
Supplemental disclosure of cash    flow information	Interest received during the period	$	3,088,042			2,923,278
	Interest paid during the period		310,640			387,695
	Income taxes paid during the period		462,163			138,375
Supplemental schedule of    noncash investing and financing    activities	Real estate acquired in settlement of loans	$	88,551			100,106
	Securitization of residential mortgage loans allocated to
	Available-for-sale investment securities		22,527			18,685
	Capitalized servicing rights		262			193

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M&T BANK CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

															Accumulated
															Other
						Common			Additional						Comprehensive
	Preferred		Common			Stock			Paid-in			Retained			Income			Treasury
Dollars in thousands, except per share	Stock		Stock			Issuable			Capital			Earnings			(Loss), Net			Stock			Total
2016
Balance — January 1, 2016	$	1,231,500		79,782			2,364			6,680,768			8,430,502			(251,627	)		—			16,173,289
Total comprehensive income		—		—			—			—			984,543			137,068			—			1,121,611
Preferred stock cash dividends		—		—			—			—			(60,953	)		—			—			(60,953	)
Exercise of 5,320 Series A stock    warrants into 1,983 shares of    common stock		—		—			—			(223	)		—			—			223			—
Purchases of treasury stock		—		—			—			—			—			—			(604,000	)		(604,000	)
Stock-based compensation plans:
Compensation expense, net		—		171			—			7,315			—			—			10,890			18,376
Exercises of stock options, net		—		18			—			(183	)		—			—			11,576			11,411
Stock purchase plan		—		—			—			275			—			—			10,319			10,594
Directors’ stock plan		—		2			—			526			—			—			1,047			1,575
Deferred compensation plans, net,    including dividend equivalents		—		2			(140	)		232			(70	)		—			4			28
Other		—		—			—			1,102			—			—			—			1,102
Common stock cash dividends —    $2.10 per share		—		—			—			—			(332,057	)		—			—			(332,057	)
Balance — September 30, 2016	$	1,231,500		79,975			2,224			6,689,812			9,021,965			(114,559	)		(569,941	)		16,340,976
2017
Balance — January 1, 2017	$	1,231,500		79,973			2,145			6,676,948			9,222,488			(294,636	)		(431,796	)		16,486,622
Total comprehensive income		—		—			—			—			1,085,903			46,721			—			1,132,624
Preferred stock cash dividends		—		—			—			—			(54,604	)		—			—			(54,604	)
Exercise of 304,436 Series A stock    warrants into 165,498 shares of    common stock		—		—			—			(22,992	)		—			—			22,992			—
Purchases of treasury stock		—		—			—			—			—			—			(981,691	)		(981,691	)
Stock-based compensation plans:
Compensation expense, net		—		(63	)		—			(51,606	)		—			—			57,685			6,016
Exercises of stock options, net		—		—			—			(6,722	)		—			—			68,014			61,292
Stock purchase plan		—		—			—			2,563			—			—			8,268			10,831
Directors’ stock plan		—		—			—			225			—			—			1,201			1,426
Deferred compensation plans, net,    including dividend equivalents		—		—			(318	)		(368	)		(65	)		—			594			(157	)
Common stock cash dividends —    $2.25 per share		—		—			—			—			(344,307	)		—			—			(344,307	)
Balance — September 30, 2017	$	1,231,500		79,910			1,827			6,598,048			9,909,415			(247,915	)		(1,254,733	)		16,318,052

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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 Form 10-K for the year ended December 31, 2016 (“2016 Annual Report”), except that effective January 2017 the Company adopted amended accounting guidance that is discussed in note 16 herein.  The most significant of those changes related to the accounting for excess tax benefits or deficiencies associated with share-based compensation whereby beginning in 2017 those amounts are recognized in income tax expense.  Previously, tax effects resulting from changes in M&T’s share price subsequent to the grant date were recorded through shareholders’ equity.  The adoption of this new accounting guidance resulted in a reduction of income tax expense for the three months ended March 31, 2017 of $18 million, or $.12 of diluted earnings per common share. The impact on income tax expense and diluted earnings per common share in the second and third quarters of 2017 was not significant.  In the opinion of management, all adjustments necessary for a fair statement have been made and were all of a normal recurring nature.

2. Acquisitions

In connection with the acquisition of Hudson City Bancorp, Inc. (“Hudson City”) on November 1, 2015 the Company incurred merger-related expenses related to systems conversions and other costs of integrating and conforming acquired operations with and into the Company. Those expenses consisted largely of professional services and other temporary help fees associated with systems conversions and/or integration of operations; costs related to termination of existing contractual arrangements for various services; initial marketing and promotion expenses designed to introduce the Company to its new customers; severance (for former Hudson City employees); travel costs; and other costs of completing the transaction and commencing operations in new markets and offices.

A summary of merger-related expenses included in the consolidated statement of income follows:

	Nine Months Ended September 30, 2016
	(In thousands)
Salaries and employee benefits	$	5,334
Equipment and net occupancy		1,278
Outside data processing and software		1,067
Advertising and marketing		10,522
Printing, postage and supplies		1,482
Other costs of operations		16,072
Total	$	35,755

There were no merger-related expenses during the three-month or nine-month periods ended September 30, 2017 or during the three-month period ended September 30, 2016.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(In thousands)
September 30, 2017
Investment securities available for sale:
U.S. Treasury and federal agencies	$	2,017,901		25		10,809	$	2,007,117
Obligations of states and political subdivisions		2,621		59		2		2,678
Mortgage-backed securities:
Government issued or guaranteed		9,155,485		92,915		63,917		9,184,483
Privately issued		30		—		—		30
Other debt securities		136,769		2,739		10,978		128,530
Equity securities		57,009		37,427		450		93,986
		11,369,815		133,165		86,156		11,416,824
Investment securities held to maturity:
Obligations of states and political subdivisions		32,445		190		81		32,554
Mortgage-backed securities:
Government issued or guaranteed		3,063,164		41,849		7,147		3,097,866
Privately issued		141,430		1,753		30,734		112,449
Other debt securities		5,085		—		—		5,085
		3,242,124		43,792		37,962		3,247,954
Other securities		414,978		—		—		414,978
Total	$	15,026,917		176,957		124,118	$	15,079,756

December 31, 2016
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,912,110	386	9,952	$	1,902,544
Obligations of states and political subdivisions		3,570	77	6		3,641
Mortgage-backed securities:
Government issued or guaranteed		10,980,507	88,343	113,989		10,954,861
Privately issued		45	—	1		44
Other debt securities		134,105	1,407	16,996		118,516
Equity securities		307,964	45,073	571		352,466
		13,338,301	135,286	141,515		13,332,072
Investment securities held to maturity:
Obligations of states and political subdivisions		60,858	267	224		60,901
Mortgage-backed securities:
Government issued or guaranteed		2,233,173	37,498	7,374		2,263,297
Privately issued		157,704	897	37,120		121,481
Other debt securities		5,543	—	—		5,543
		2,457,278	38,662	44,718		2,451,222
Other securities		461,118	—	—		461,118
Total	$	16,256,697	173,948	186,233	$	16,244,412

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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 three-month and nine-month periods ended September 30, 2017.  During the three months ended September 30, 2016, the Company sold substantially all of its collateralized debt obligations held in the available-for-sale investment securities portfolio for a gain of $28 million.  There were no other significant gross realized gains or losses from the sale of investment securities for the three-month and nine-month periods ended September 30, 2016.

At September 30, 2017, 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	$	393,453		392,506
Due after one year through five years		1,632,143		1,622,447
Due after five years through ten years		72,508		72,854
Due after ten years		59,187		50,518
		2,157,291		2,138,325
Mortgage-backed securities available for sale		9,155,515		9,184,513
	$	11,312,806		11,322,838
Debt securities held to maturity:
Due in one year or less	$	18,640		18,738
Due after one year through five years		13,612		13,619
Due after five years through ten years		193		197
Due after ten years		5,085		5,085
		37,530		37,639
Mortgage-backed securities held to maturity		3,204,594		3,210,315
	$	3,242,124		3,247,954

- 10 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

A summary of investment securities that as of September 30, 2017 and December 31, 2016 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)
September 30, 2017
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,576,717		(8,002	)		373,852		(2,807	)
Obligations of states and political subdivisions		—		—			474		(2	)
Mortgage-backed securities:
Government issued or guaranteed		2,854,982		(32,123	)		1,298,054		(31,794	)
Other debt securities		1,500		(3	)		60,518		(10,975	)
Equity securities		18,185		(303	)		153		(147	)
		4,451,384		(40,431	)		1,733,051		(45,725	)
Investment securities held to maturity:
Obligations of states and political subdivisions		4,932		(31	)		7,093		(50	)
Mortgage-backed securities:
Government issued or guaranteed		638,863		(2,832	)		157,923		(4,315	)
Privately issued		—		—			53,631		(30,734	)
		643,795		(2,863	)		218,647		(35,099	)
Total	$	5,095,179		(43,294	)		1,951,698		(80,824	)
December 31, 2016
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,710,241		(9,950	)		2,295		(2	)
Obligations of states and political subdivisions		—		—			593		(6	)
Mortgage-backed securities:
Government issued or guaranteed		6,730,829		(113,374	)		81,003		(615	)
Privately issued		—		—			27		(1	)
Other debt securities		100		(1	)		85,400		(16,995	)
Equity securities		17,776		(422	)		151		(149	)
		8,458,946		(123,747	)		169,469		(17,768	)
Investment securities held to maturity:
Obligations of states and political subdivisions		17,988		(126	)		11,891		(98	)
Mortgage-backed securities:
Government issued or guaranteed		618,832		(6,842	)		17,481		(532	)
Privately issued		17,911		(1,222	)		57,016		(35,898	)
		654,731		(8,190	)		86,388		(36,528	)
Total	$	9,113,677		(131,937	)		255,857		(54,296	)

The Company owned 939 individual investment securities with aggregate gross unrealized losses of $124 million at September 30, 2017. Based on a review of each of the securities in the investment securities portfolio at September 30, 2017, the Company concluded that it expected to recover the amortized cost basis of its investment.  As of September 30, 2017, 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 September 30, 2017, the Company has not identified

- 11 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

3. Investment securities, continued

events or changes in circumstances which may have a significant adverse effect on the carrying value of the $415 million of cost method investment securities.

4. Loans and leases and the allowance for credit losses

A summary of current, past due and nonaccrual loans as of September 30, 2017 and December 31, 2016 follows:

	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More (a)		Accruing Loans Acquired at a Discount Past Due 90 days or More (b)		Purchased Impaired (c)		Nonaccrual		Total
	(In thousands)
September 30, 2017
Commercial, financial, leasing, etc.	$	21,486,942		48,159		3,710		369		75		203,996	$	21,743,251
Real estate:
Commercial		24,724,768		273,539		1,710		7,523		20,509		200,193		25,228,242
Residential builder and developer		1,604,095		26,182		—		4,413		10,717		2,416		1,647,823
Other commercial construction		5,952,636		51,132		1,220		—		13,972		19,263		6,038,223
Residential		15,868,656		458,066		249,983		10,025		307,529		236,363		17,130,622
Residential — limited documentation		2,829,667		88,814		—		—		114,141		101,918		3,134,540
Consumer:
Home equity lines and loans		5,275,572		34,878		772		9,856		—		75,584		5,396,662
Automobile		3,327,148		67,280		—		1		—		21,267		3,415,696
Other		4,120,712		33,070		3,893		24,038		—		8,362		4,190,075
Total	$	85,190,196		1,081,120		261,288		56,225		466,943		869,362	$	87,925,134
December 31, 2016
Commercial, financial, leasing, etc.	$	22,287,857		53,503		6,195		417		641		261,434	$	22,610,047
Real estate:
Commercial		25,076,684		183,531		7,054		12,870		31,404		176,201		25,487,744
Residential builder and developer		1,884,989		4,667		5		1,952		14,006		16,707		1,922,326
Other commercial construction		5,985,118		77,701		922		198		14,274		18,111		6,096,324
Residential		17,631,377		485,468		281,298		11,537		378,549		229,242		19,017,471
Residential — limited documentation		3,239,344		88,366		—		—		139,158		106,573		3,573,441
Consumer:
Home equity lines and loans		5,502,091		44,565		—		12,678		—		81,815		5,641,149
Automobile		2,869,232		56,158		—		1		—		18,674		2,944,065
Other		3,491,629		31,286		5,185		21,491		—		11,258		3,560,849
Total	$	87,968,321		1,025,245		300,659		61,144		578,032		920,015	$	90,853,416

(a) Excludes loans acquired at a discount.

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

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

- 12 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

One-to-four family residential mortgage loans held for sale were $347 million and $414 million at September 30, 2017 and December 31, 2016, respectively.  Commercial real estate loans held for sale were $224 million at September 30, 2017 and $643 million at December 31, 2016.

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

	September 30,		December 31,
	2017		2016
	(In thousands)
Outstanding principal balance	$	1,584,126		2,311,699
Carrying amount:
Commercial, financial, leasing, etc.		42,878		59,928
Commercial real estate		308,426		456,820
Residential real estate		665,278		799,802
Consumer		127,919		487,721
	$	1,144,501		1,804,271

Purchased impaired loans included in the table above totaled $467 million at September 30, 2017 and $578 million at December 31, 2016, representing less than 1% of the Company’s assets as of each date.  A summary of changes in the accretable yield for loans acquired at a discount for the three months and nine months ended September 30, 2017 and 2016 follows:

	Three Months Ended September 30
	2017						2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)
Balance at beginning of period	$	133,532			163,099		$	162,023			245,195
Interest income		(10,815	)		(20,064	)		(12,784	)		(26,540	)
Reclassifications from nonaccretable balance		30,799			6,041			2,256			12,050
Other (a)		—			1,545			—			(818	)
Balance at end of period	$	153,516			150,621		$	151,495			229,887
	Nine Months Ended September 30
	2017						2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)
Balance at beginning of period	$	154,233			201,153		$	184,618			296,434
Interest income		(32,546	)		(66,505	)		(40,906	)		(97,300	)
Reclassifications from nonaccretable balance		31,829			11,076			7,783			20,647
Other (a)		—			4,897			—			10,106
Balance at end of period	$	153,516			150,621		$	151,495			229,887

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

- 13 -

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 September 30, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	339,314			366,229			66,006			158,559			78,117	$	1,008,225
Provision for credit losses		2,451			(7,699	)		1,267			33,886			95		30,000
Net charge-offs
Charge-offs		(9,714	)		(258	)		(4,206	)		(32,874	)		—		(47,052	)
Recoveries		4,423			5,895			2,028			9,807			—		22,153
Net (charge-offs) recoveries		(5,291	)		5,637			(2,178	)		(23,067	)		—		(24,899	)
Ending balance	$	336,474			364,167			65,095			169,378			78,212	$	1,013,326

Changes in the allowance for credit losses for the three months ended September 30, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	316,079			349,674			69,660			157,361			77,722	$	970,496
Provision for credit losses		26,222			9,963			(6,232	)		16,539			508		47,000
Net charge-offs
Charge-offs		(21,075	)		(1,564	)		(6,754	)		(29,882	)		—		(59,275	)
Recoveries		6,958			1,704			1,919			7,319			—		17,900
Net (charge-offs) recoveries		(14,117	)		140			(4,835	)		(22,563	)		—		(41,375	)
Ending balance	$	328,184			359,777			58,593			151,337			78,230	$	976,121

Changes in the allowance for credit losses for the nine months ended September 30, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	330,833			362,719			61,127			156,288			78,030	$	988,997
Provision for credit losses		44,642			1,201			14,067			76,908			182		137,000
Net charge-offs
Charge-offs		(51,318	)		(7,556	)		(16,364	)		(96,060	)		—		(171,298	)
Recoveries		12,317			7,803			6,265			32,242			—		58,627
Net (charge-offs) recoveries		(39,001	)		247			(10,099	)		(63,818	)		—		(112,671	)
Ending balance	$	336,474			364,167			65,095			169,378			78,212	$	1,013,326

- 14 -

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 nine months ended September 30, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	300,404			326,831			72,238			178,320			78,199	$	955,992
Provision for credit losses		39,667			29,799			(610	)		59,113			31		128,000
Net charge-offs
Charge-offs		(34,711	)		(3,569	)		(18,816	)		(107,761	)		—		(164,857	)
Recoveries		22,824			6,716			5,781			21,665			—		56,986
Net (charge-offs) recoveries		(11,887	)		3,147			(13,035	)		(86,096	)		—		(107,871	)
Ending balance	$	328,184			359,777			58,593			151,337			78,230	$	976,121

Despite the allocation in the preceding tables, 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 credit 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 loans 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.

- 15 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

The following tables provide information with respect to loans and leases that were considered impaired as of September 30, 2017 and December 31, 2016 and for the three-month and nine-month periods ended September 30, 2017 and 2016.

	September 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	148,747		179,120		49,447		168,072		184,432		48,480
Real estate:
Commercial		73,144		81,244		10,200		71,862		86,666		11,620
Residential builder and developer		6,537		6,842		288		7,396		8,361		506
Other commercial construction		1,626		1,785		292		2,475		2,731		448
Residential		97,483		118,030		3,475		86,680		105,944		3,457
Residential — limited documentation		79,030		94,194		4,600		82,547		97,718		6,000
Consumer:
Home equity lines and loans		48,231		52,975		8,711		44,693		48,965		8,027
Automobile		14,225		16,743		3,011		16,982		18,272		3,740
Other		3,176		5,633		650		3,791		5,296		776
		472,199		556,566		80,674		484,498		558,385		83,054
With no related allowance recorded:
Commercial, financial, leasing, etc.		80,952		97,073		—		100,805		124,786		—
Real estate:
Commercial		148,733		158,815		—		113,276		121,846		—
Residential builder and developer		1,174		1,174		—		14,368		21,124		—
Other commercial construction		17,850		37,237		—		15,933		35,281		—
Residential		17,312		23,291		—		16,823		24,161		—
Residential — limited documentation		11,091		18,480		—		15,429		24,590		—
		277,112		336,070		—		276,634		351,788		—
Total:
Commercial, financial, leasing, etc.		229,699		276,193		49,447		268,877		309,218		48,480
Real estate:
Commercial		221,877		240,059		10,200		185,138		208,512		11,620
Residential builder and developer		7,711		8,016		288		21,764		29,485		506
Other commercial construction		19,476		39,022		292		18,408		38,012		448
Residential		114,795		141,321		3,475		103,503		130,105		3,457
Residential — limited documentation		90,121		112,674		4,600		97,976		122,308		6,000
Consumer:
Home equity lines and loans		48,231		52,975		8,711		44,693		48,965		8,027
Automobile		14,225		16,743		3,011		16,982		18,272		3,740
Other		3,176		5,633		650		3,791		5,296		776
Total	$	749,311		892,636		80,674		761,132		910,173		83,054

- 16 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

	Three Months Ended September 30, 2017						Three Months Ended September 30, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)
Commercial, financial, leasing, etc.	$	224,526		391		391		262,796		744		744
Real estate:
Commercial		233,572		1,425		1,425		175,256		1,806		1,806
Residential builder and developer		8,550		895		895		26,996		405		405
Other commercial construction		16,578		25		25		21,500		190		190
Residential		113,892		1,903		905		96,961		1,572		570
Residential — limited documentation		91,974		1,624		569		101,877		1,501		378
Consumer:
Home equity lines and loans		47,831		419		99		41,740		368		112
Automobile		14,588		251		22		18,571		303		19
Other		3,269		80		2		4,077		72		11
Total	$	754,780		7,013		4,333		749,774		6,961		4,235

	Nine Months Ended September 30, 2017						Nine Months Ended September 30, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)
Commercial, financial, leasing, etc.	$	242,410		1,674		1,674		283,783		7,055		7,055
Real estate:
Commercial		205,814		3,213		3,213		177,579		3,891		3,891
Residential builder and developer		14,551		1,791		1,791		30,832		488		488
Other commercial construction		15,474		958		958		19,774		563		563
Residential		108,741		5,004		2,285		97,229		4,778		2,591
Residential — limited documentation		94,680		4,573		1,292		104,382		4,580		1,648
Consumer:
Home equity lines and loans		46,829		1,240		290		33,998		937		295
Automobile		15,483		788		62		20,358		964		83
Other		3,430		227		8		10,987		371		74
Total	$	747,412		19,468		11,573		778,922		23,627		16,688

- 17 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

In accordance with the previously described policies, the Company utilizes a loan grading system that is applied to all commercial loans and commercial real estate loans.  Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan.  Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses.  Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses.  Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more.  All larger- balance criticized commercial loans and commercial real estate loans are individually reviewed by centralized credit 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,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(In thousands)
September 30, 2017
Pass	$	20,561,077		24,309,923		1,580,763		5,830,122
Criticized accrual		978,178		718,126		64,644		188,838
Criticized nonaccrual		203,996		200,193		2,416		19,263
Total	$	21,743,251		25,228,242		1,647,823		6,038,223
December 31, 2016
Pass	$	21,398,581		24,570,269		1,789,071		5,912,351
Criticized accrual		950,032		741,274		116,548		165,862
Criticized nonaccrual		261,434		176,201		16,707		18,111
Total	$	22,610,047		25,487,744		1,922,326		6,096,324

- 18 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

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. However, residential real estate loans and outstanding balances of home equity loans and lines of credit that are more than 150 days past due are generally evaluated for collectability 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 totaled $39 million and $27 million, respectively, at September 30, 2017 and $44 million and $32 million, respectively, at December 31, 2016. 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 were $19 million and $33 million, respectively, at September 30, 2017 and $16 million and $39 million, respectively, at December 31, 2016.

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.

- 19 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

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

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
September 30, 2017
Individually evaluated for impairment	$	49,447		10,780		8,075		12,372	$	80,674
Collectively evaluated for impairment		287,027		353,387		47,674		157,006		845,094
Purchased impaired		—		—		9,346		—		9,346
Allocated	$	336,474		364,167		65,095		169,378		935,114
Unallocated										78,212
Total									$	1,013,326
December 31, 2016
Individually evaluated for impairment	$	48,480		12,500		9,457		12,543	$	82,980
Collectively evaluated for impairment		282,353		348,301		47,993		143,745		822,392
Purchased impaired		—		1,918		3,677		—		5,595
Allocated	$	330,833		362,719		61,127		156,288		910,967
Unallocated										78,030
Total									$	988,997

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

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
September 30, 2017
Individually evaluated for impairment	$	229,699		249,064		204,916		65,632	$	749,311
Collectively evaluated  for impairment		21,513,477		32,620,026		19,638,576		12,936,801		86,708,880
Purchased impaired		75		45,198		421,670		—		466,943
Total	$	21,743,251		32,914,288		20,265,162		13,002,433	$	87,925,134
December 31, 2016
Individually evaluated for impairment	$	268,877		224,630		201,479		65,466	$	760,452
Collectively evaluated for impairment		22,340,529		33,222,080		21,871,726		12,080,597		89,514,932
Purchased impaired		641		59,684		517,707		—		578,032
Total	$	22,610,047		33,506,394		22,590,912		12,146,063	$	90,853,416

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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

The tables that follow summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three-month and nine-month periods ended September 30, 2017 and 2016:

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Three Months Ended September 30, 2017	(Dollars in thousands)
Commercial, financial, leasing, etc.		49	$	15,812	$	5,888	$	97	$	9,251	$	15,236
Real estate:
Commercial		17		5,861		1,420		868		3,450		5,738
Residential		34		5,123		3,033		—		2,716		5,749
Residential — limited documentation		4		515		383		—		167		550
Consumer:
Home equity lines and loans		25		2,154		461		—		1,776		2,237
Automobile		17		342		326		—		16		342
Other		1		5		5		—		—		5
Total		147	$	29,812	$	11,516	$	965	$	17,376	$	29,857
Three Months Ended September 30, 2016
Commercial, financial, leasing, etc.		43	$	69,486	$	40,183	$	—	$	19,802	$	59,985
Real estate:
Commercial		18		14,925		11,644		—		2,614		14,258
Residential		30		5,638		4,714		—		1,214		5,928
Residential — limited documentation		6		827		470		—		493		963
Consumer:
Home equity lines and loans		26		2,552		251		—		2,301		2,552
Automobile		10		186		186		—		—		186
Other		1		26		26		—		—		26
Total		134	$	93,640	$	57,474	$	—	$	26,424	$	83,898

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Nine Months Ended September 30, 2017	(Dollars in thousands)
Commercial, financial, leasing, etc.		162	$	93,346	$	18,449	$	6,459	$	47,211	$	72,119
Real estate:
Commercial		67		38,608		16,193		868		21,332		38,393
Residential builder and developer		3		12,291		—		—		10,879		10,879
Other commercial construction		2		168		168		—		—		168
Residential		105		22,459		11,608		—		12,557		24,165
Residential — limited documentation		17		3,724		618		—		3,352		3,970
Consumer:
Home equity lines and loans		85		7,885		1,040		491		6,442		7,973
Automobile		59		1,160		1,089		—		71		1,160
Other		6		85		85		—		—		85
Total		506	$	179,726	$	49,250	$	7,818	$	101,844	$	158,912
Nine Months Ended September 30, 2016
Commercial, financial, leasing, etc.		112	$	148,204	$	98,561	$	—	$	39,971	$	138,532
Real estate:
Commercial		55		36,984		17,802		4,576		13,546		35,924
Residential builder and developer		3		23,905		22,958		—		—		22,958
Other commercial construction		2		374		250		—		124		374
Residential		73		11,946		7,945		—		4,705		12,650
Residential — limited documentation		14		2,415		803		—		1,872		2,675
Consumer:
Home equity lines and loans		84		9,189		655		—		8,534		9,189
Automobile		148		1,005		865		55		85		1,005
Other		78		1,192		951		45		196		1,192
Total		569	$	235,214	$	150,790	$	4,676	$	69,033	$	224,499

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.  The present value of interest rate concessions, discounted at the effective rate of the original loan, was not material.

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 September 30, 2017 and 2016 and for which there was a subsequent payment default during the nine-month periods ended September 30, 2017 and 2016, respectively, were not material.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

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

The amount of foreclosed residential real estate property held by the Company totaled $106 million and $129 million at September 30, 2017 and December 31, 2016, respectively.  There were $545 million and $506 million at September 30, 2017 and December 31, 2016, respectively, in loans secured by residential real estate that were in the process of foreclosure. Of all loans in the process of foreclosure at September 30, 2017, approximately 48% were classified as purchased impaired and 20% were government guaranteed.

5. Borrowings

During May 2017, M&T Bank, the principal bank subsidiary of M&T, issued $900 million of senior notes that mature in May 2022 pursuant to a Bank Note Program, of which $650 million have a 2.50% fixed interest rate and $250 million have a variable rate paid quarterly at rates that are indexed to the three-month London Interbank Offered Rate (“LIBOR”).  During June 2017, M&T Bank redeemed $750 million of 1.40% fixed rate senior notes.  The notes had a maturity date of July 25, 2017 and were redeemable on or after the 30^th day prior to the maturity date.  During August 2017, M&T Bank issued $750 million of three-year 2.05% fixed rate senior notes due August 2020 and $500 million of ten-year 3.40% fixed rate subordinated notes due August 2027.

M&T had $519 million of fixed and variable rate junior subordinated deferrable interest debentures ("Junior Subordinated Debentures") outstanding at September 30, 2017 that are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities ("Capital Securities") and common securities ("Common Securities").  The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures.  The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust's securities possessing general voting powers.  The Capital Securities represent preferred undivided interests in the assets of the corresponding trust. Under the Federal Reserve Board’s risk-based capital guidelines, the securities are includable in M&T’s Tier 2 regulatory capital.

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

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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

5. Borrowings, continued

Also included in long-term borrowings are agreements to repurchase securities of $425 million and $1.1 billion at September 30, 2017 and December 31, 2016, respectively.  The agreements reflect various repurchase dates through 2020, however, the contractual maturities of the underlying investment securities extend beyond such repurchase dates.  The agreements are subject to legally enforceable master netting arrangements, however, the Company has not offset any amounts related to these agreements in its consolidated financial statements.  The Company posted collateral consisting primarily of government guaranteed mortgage-backed securities of $445 million and $1.1 billion at September 30, 2017 and December 31, 2016, respectively.

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 September 30, 2017 and December 31, 2016 is presented below:

	Shares Issued and Outstanding		Carrying Value
	(Dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, $1,000     liquidation preference per share		230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, $1,000     liquidation preference per share		151,500	$	151,500
Series E (b)
Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock,     $1,000 liquidation preference per share		350,000	$	350,000
Series F (c)
Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock,     $10,000 liquidation preference per share		50,000	$	500,000

(a) Dividends, if declared, are paid at 6.375%.  Warrants to purchase M&T common stock at $73.79 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 327,358 at September 30, 2017.

(b) 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 LIBOR plus 361 basis points (hundredths of one percent).  The shares are redeemable in whole or in part on or after February 15, 2024.  Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are paid semi-annually at a rate of 5.125% through October 31, 2026 and thereafter will be paid quarterly at a rate of the three-month LIBOR plus 352 basis points.  The shares are redeemable in whole or in part on or after November 1, 2026.  Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A warrants mentioned in (a) above, a warrant to purchase 95,472 shares of M&T common stock at $518.47 per share was outstanding at September 30, 2017.  The obligation under that warrant was assumed by M&T in an acquisition and expires in 2018.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

7. Pension plans and other postretirement benefits

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

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended September 30
	2017			2016			2017			2016
	(In thousands)
Service cost	$	5,048			6,259			293		399
Interest cost on projected benefit obligation		19,818			20,853			929			1,242
Expected return on plan assets		(27,131	)		(27,118	)		—			—
Amortization of prior service cost (credit)		139			(807	)		(340	)		(339	)
Amortization of net actuarial loss (gain)		7,316			7,536			(247	)		15
Net periodic benefit cost	$	5,190			6,723			635			1,317

	Pension Benefits						Other Postretirement Benefits
	Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands)
Service cost	$	15,145			18,778			878			1,197
Interest cost on projected benefit obligation		59,452			62,558			2,787			3,728
Expected return on plan assets		(81,393	)		(81,355	)		—			—
Amortization of prior service cost (credit)		418			(2,421	)		(1,019	)		(1,019	)
Amortization of net actuarial loss (gain)		21,947			22,609			(741	)		45
Net periodic benefit cost	$	15,569			20,169			1,905			3,951

Expense incurred in connection with the Company's defined contribution pension and retirement savings plans totaled $16,085,000 and $14,783,000 for the three months ended September 30, 2017 and 2016, respectively, and $53,127,000 and $47,747,000 for the nine months ended September 30, 2017 and 2016, 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 September 30						Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands, except per share)
Income available to common shareholders:
Net income	$	355,923			349,984			1,085,903			984,543
Less: Preferred stock dividends (a)		(18,130	)		(20,318	)		(54,604	)		(60,953	)
Net income available to common equity		337,793			329,666			1,031,299			923,590
Less: Income attributable to unvested stock-based    compensation awards		(1,992	)		(2,674	)		(6,288	)		(7,920	)
Net income available to common shareholders	$	335,801			326,992			1,025,011			915,670
Weighted-average shares outstanding:
Common shares outstanding (including common stock    issuable) and unvested stock-based compensation awards		152,245			156,767			153,814			158,710
Less: Unvested stock-based compensation awards		(898	)		(1,274	)		(948	)		(1,374	)
Weighted-average shares outstanding		151,347			155,493			152,866			157,336
Basic earnings per common share	$	2.22			2.10			6.71			5.82

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

The computations of diluted earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands, except per share)
Net income available to common equity	$	337,793			329,666			1,031,299			923,590
Less: Income attributable to unvested stock-based    compensation awards		(1,989	)		(2,668	)		(6,276	)		(7,904	)
Net income available to common shareholders	$	335,804			326,998			1,025,023			915,686
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		152,245			156,767			153,814			158,710
Less: Unvested stock-based compensation awards		(898	)		(1,274	)		(948	)		(1,374	)
Plus: Incremental shares from assumed conversion of    stock-based compensation awards and warrants to    purchase common stock		344			533			427			507
Adjusted weighted-average shares outstanding		151,691			156,026			153,293			157,843
Diluted earnings per common share	$	2.21			2.10			6.69			5.80

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 408,657 and 2,015,870 common shares during the three-month periods ended September 30, 2017 and 2016, respectively, and 404,487 and 2,513,288 common shares during the nine-month periods ended September 30, 2017 and 2016, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income

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

	Investment Securities						Defined Benefit						Total Amount				Income
	With OTTI (a)			All Other			Plans			Other			Before Tax				Tax			Net
	(In thousands)
Balance — January 1, 2017	$	46,725			(73,785	)		(449,917	)		(8,268	)	$	(485,245	)			190,609		$	(294,636	)
Other comprehensive income before reclassifications:
Unrealized holding gains (losses), net		(7,365	)		60,586			—			—			53,221				(20,934	)		32,287
Foreign currency translation adjustment		—			—			—			3,829			3,829				(1,340	)		2,489
Unrealized losses on cash flow hedges		—			—			—			(1,076	)		(1,076	)			424			(652	)
Total other comprehensive income (loss) before    reclassifications		(7,365	)		60,586			—			2,753			55,974				(21,850	)		34,124
Amounts reclassified from accumulated other    comprehensive income that (increase) decrease    net income:
Amortization of unrealized holding losses on    held-to-maturity (“HTM”) securities		—			2,535			—			—			2,535		(b)		(998	)		1,537
(Gains) losses realized in net income		(50	)		67			—			—			17		(c)		(7	)		10
Accretion of net gain on terminated cash flow    hedges		—			—			—			(109	)		(109	)	(d)		43			(66	)
Net yield adjustment from cash flow hedges currently in    effect		—			—			—			(2,275	)		(2,275	)	(b)		895			(1,380	)
Amortization of prior service credit		—			—			(601	)		—			(601	)	(e)		236			(365	)
Amortization of actuarial losses		—			—			21,206			—			21,206		(e)		(8,345	)		12,861
Total reclassifications		(50	)		2,602			20,605			(2,384	)		20,773				(8,176	)		12,597
Total gain (loss) during the period		(7,415	)		63,188			20,605			369			76,747				(30,026	)		46,721
Balance — September 30, 2017	$	39,310			(10,597	)		(429,312	)		(7,899	)	$	(408,498	)			160,583		$	(247,915	)
Balance — January 1, 2016	$	16,359			62,849			(489,660	)		(4,093	)	$	(414,545	)			162,918		$	(251,627	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		1,228			234,438			—			—			235,666				(92,714	)		142,952
Foreign currency translation adjustment		—			—			—			(2,836	)		(2,836	)			989			(1,847	)
Total other comprehensive income (loss) before    reclassifications		1,228			234,438			—			(2,836	)		232,830				(91,725	)		141,105
Amounts reclassified from accumulated other    comprehensive income that (increase) decrease    net income:
Amortization of unrealized holding losses on    HTM securities		—			2,998			—			—			2,998		(b)		(1,180	)		1,818
Gains realized in net income		—			(28,748	)		—			—			(28,748	)	(c)		11,309			(17,439	)
Accretion of net gain on terminated cash flow    hedges		—			—			—			(116	)		(116	)	(d)		46			(70	)
Amortization of prior service credit		—			—			(3,440	)		—			(3,440	)	(e)		1,354			(2,086	)
Amortization of actuarial losses		—			—			22,654			—			22,654		(e)		(8,914	)		13,740
Total reclassifications		—			(25,750	)		19,214			(116	)		(6,652	)			2,615			(4,037	)
Total gain (loss) during the period		1,228			208,688			19,214			(2,952	)		226,178				(89,110	)		137,068
Balance — September 30, 2016	$	17,587			271,537			(470,446	)		(7,045	)	$	(188,367	)			73,808		$	(114,559	)

(a) Other-than-temporary impairment

(b) Included in interest income

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

(d) Included in interest expense

(e) Included in salaries and employee benefits expense

- 27 -

NOTES TO FINANCIAL STATEMENTS, CONTINUED

9. Comprehensive income, continued

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, 2016	$	28,338			(44,657	)		(272,874	)		(5,443	)	$	(294,636	)
Net gain (loss) during period		(4,496	)		38,330			12,496			391			46,721
Balance — September 30, 2017	$	23,842			(6,327	)		(260,378	)		(5,052	)	$	(247,915	)

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, collateral and/or settlement provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting, collateral or settlement provisions, the Company believes that the credit risk inherent in these contracts was not significant as of September 30, 2017.

The net effect of interest rate swap agreements was to increase net interest income by $7 million and $9 million for the three-month periods ended September 30, 2017 and 2016, respectively, and $18 million and $30 million for the nine-month periods ended September 30, 2017 and 2016, respectively.

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:

					Weighted- Average Rate
	Notional Amount		Average Maturity		Fixed			Variable			Estimated Fair Value Gain (a)
	(Inthousands)		(In years)								(In thousands)
September 30, 2017
Fair value hedges:
Fixed rate long-term borrowings (b)	$	4,950,000		2.9		2.63	%		2.04	%	$	697
Cash flow hedges:
Variable rate commercial real estate loans (b)		2,000,000		1.6		1.46	%		1.24	%		—
Total	$	6,950,000		2.5							$	697
December 31, 2016
Fair value hedges:
Fixed rate long-term borrowings (b)	$	900,000		1.1		3.75	%		2.08	%	$	11,892

(a) Effective January 2017 certain clearinghouse exchanges revised their rules such that certain required payments by counterparties for variation margin on derivative instruments that had been treated as collateral are now treated as settlements of those positions.   The impact of such rule changes at September 30, 2017 was a reduction of the estimated fair value losses on interest rate swaps designated as fair value hedges of $12.2 million and on interest rate swaps designated as cash flow hedges of $3.4 million.

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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

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 $15.5 billion and $21.6 billion at September 30, 2017 and December 31, 2016, respectively.  The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes aggregated $545 million and $471 million at September 30, 2017 and December 31, 2016, 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
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(In thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	2,048	$	11,892	$	1,351	$	—
Commitments to sell real estate loans (a)		1,667		33,189		1,551		1,347
Cash flow hedges:
Interest rate swap agreements (a)		—		—		—		—
		3,715		45,081		2,902		1,347
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		13,962		8,060		240		735
Commitments to sell real estate loans (a)		3,153		5,210		936		399
Trading:
Interest rate contracts (b)		104,178		228,810		103,825		167,737
Foreign exchange and other option and futures contracts (b)		6,823		7,908		5,905		6,639
		128,116		249,988		110,906		175,510
Total derivatives	$	131,831	$	295,069	$	113,808	$	176,857

(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.  The impact of the variation margin rule change at September 30, 2017 was a reduction of the estimated fair value of interest rate swaps in an asset position of $89.3 million and of those in a liability position of $29.2 million.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

	Amount of Gain (Loss) Recognized
	Three Months Ended September 30, 2017					Three Months Ended September 30, 2016
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(13,509	)		14,026	$	(12,588	)		12,587
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	(418	)			$	4,822
Foreign exchange and other option and futures contracts (b)		1,362					1,746
Total	$	944				$	6,568

	Amount of Gain (Loss) Recognized
	Nine Months Ended September 30, 2017					Nine Months Ended September 30, 2016
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(23,423	)		23,049	$	(22,832	)		21,603
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	2,363				$	11,578
Foreign exchange and other option and futures contracts (b)		4,766					5,415
Total	$	7,129				$	16,993

(a) Reported as other revenues from operations.

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

The amount of gain (loss) recognized in the consolidated statement of income associated with derivatives designated as cash flow hedges was not material for the three and nine months ended September 30, 2017.

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 $27 million and $28 million at September 30, 2017 and December 31, 2016, 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 or settlement 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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

10. Derivative financial instruments, continued

The aggregate fair value of derivative financial instruments in a liability position which are subject to enforceable master netting arrangements was $17 million and $34 million at September 30, 2017 and December 31, 2016, respectively.  After consideration of such netting arrangements for purposes of posting collateral, the net liability positions with counterparties aggregated $17 million and $30 million at September 30, 2017 and December 31, 2016, respectively.  The Company was required to post collateral relating to those positions of $18 million and $27 million at September 30, 2017 and December 31, 2016, 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 September 30, 2017 was less than $1 million, for which the Company was not required to post collateral in the normal course of business.  If the credit risk-related contingent features had been triggered on September 30, 2017, the Company would not have been required to post any collateral to counterparties.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $7 million and $15 million at September 30, 2017 and December 31, 2016, respectively.  After consideration of such netting arrangements for purposes of posting collateral, the net asset positions with counterparties aggregated $7 million and $11 million at September 30, 2017 and December 31, 2016, respectively.  Counterparties posted collateral relating to those positions of $5 million and $9 million at September 30, 2017 and December 31, 2016, 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 variation margin payments depending on the contracts being in a net asset or liability position. The amount of initial margin collateral posted by the Company was $49 million and $111 million at September 30, 2017 and December 31, 2016, respectively.  The fair value asset and liability amounts of derivative contracts at September 30, 2017 have been reduced by variation margin payments treated as settlements of $89 million and $45 million, respectively.  Variation margin on derivative contracts not treated as settlements continues to represent collateral posted or received by the Company.  For those contracts, the net fair values of derivative financial instruments cleared through clearinghouses for which variation margin is required was a net asset position of $1 million and $63 million at September 30, 2017 and December 31, 2016, respectively. Collateral posted by the clearinghouses associated with that net asset position was $1 million and $81 million at September 30, 2017 and December 31, 2016, respectively.

11. Variable interest entities and asset securitizations

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 September 30, 2017 and December 31, 2016, the Company included the junior subordinated debentures as “long-term borrowings” in its consolidated balance sheet and recognized $24 million in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 5.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

11. Variable interest entities and asset securitizations, continued

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.0 billion at September 30, 2017 and December 31, 2016. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $329 million, including $118 million of unfunded commitments, at September 30, 2017 and $294 million, including $102 million of unfunded commitments, at December 31, 2016.  Contingent commitments to provide additional capital contributions to these partnerships were not material at September 30, 2017. The Company has not provided financial or other support to the partnerships that was not contractually required.  Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities.  The Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, in accordance with the accounting provisions for variable interest entities, the partnership entities are not included in the Company’s consolidated financial statements.  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 $11 million and $35 million of its investments in qualified affordable housing projects to income tax expense during the three-month and nine-month periods ended September 30, 2017, respectively, and recognized $16 million and $47 million of tax credits and other tax benefits during those respective periods. Similarly, for the three-month and nine-month periods ended September 30, 2016, the Company amortized $13 million and $34 million, respectively, of its investments in qualified affordable housing projects to income tax expense and recognized $18 million and $46 million of tax credits and other tax benefits during those respective periods.

The Company serves as investment advisor for certain registered money-market funds.  The Company has no explicit arrangement to provide support to those funds, but may waive portions of its allowable management fees as a result of market conditions.

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 September 30, 2017.

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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

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 and other 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.

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

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

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 September 30, 2017 and December 31, 2016 measured at estimated fair value on a recurring basis:

	Fair Value Measurements		Level 1 (a)		Level 2 (a)		Level 3
	(In thousands)
September 30, 2017
Trading account assets	$	170,516		47,927		122,589		—
Investment securities available for sale:
U.S. Treasury and federal agencies		2,007,117		—		2,007,117		—
Obligations of states and political subdivisions		2,678		—		2,678		—
Mortgage-backed securities:
Government issued or guaranteed		9,184,483		—		9,184,483		—
Privately issued		30		—		—		30
Other debt securities		128,530		—		128,530		—
Equity securities		93,986		50,917		43,069		—
		11,416,824		50,917		11,365,877		30
Real estate loans held for sale		571,199		—		571,199		—
Other assets (b)		20,830		—		6,868		13,962
Total assets	$	12,179,369		98,844		12,066,533		13,992
Trading account liabilities	$	109,730		—		109,730		—
Other liabilities (b)		4,078		—		3,838		240
Total liabilities	$	113,808		—		113,568		240
December 31, 2016
Trading account assets	$	323,867		46,135		277,732		—
Investment securities available for sale:
U.S. Treasury and federal agencies		1,902,544		—		1,902,544		—
Obligations of states and political subdivisions		3,641		—		3,641		—
Mortgage-backed securities:
Government issued or guaranteed		10,954,861		—		10,954,861		—
Privately issued		44		—		—		44
Other debt securities		118,516		—		118,516		—
Equity securities		352,466		301,711		50,755		—
		13,332,072		301,711		13,030,317		44
Real estate loans held for sale		1,056,180		—		1,056,180		—
Other assets (b)		58,351		—		50,291		8,060
Total assets	$	14,770,470		347,846		14,414,520		8,104
Trading account liabilities	$	174,376		—		174,376		—
Other liabilities (b)		2,481		—		1,746		735
Total liabilities	$	176,857		—		176,122		735

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2017 and the year ended December 31, 2016.                                        

(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 September 30, 2017 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities			Other Assets and Other Liabilities
	(In thousands)
Balance — June 30, 2017	$	35			12,425
Total gains (losses) realized/unrealized:
Included in earnings		—			22,313		(b)
Settlements		(5	)		—
Transfers in and/or out of Level 3 (a)		—			(21,016	)	(d)
Balance — September 30, 2017	$	30			13,722
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2017	$	—			12,659		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2016 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-BackedSecurities			Collateralized DebtObligations				OtherAssetsand OtherLiabilities
	(In thousands)
Balance — June 30, 2016	$	57			43,305				21,383
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				45,534		(b)
Included in other comprehensive income		—			(15,050	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(6	)		—				—
Transfers in and/or out of Level 3 (a)		—			—				(37,117	)	(d)
Balance — September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2016	$	—			—				27,663		(b)

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2017 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities			Other Assets and Other Liabilities
	(In thousands)
Balance — January 1, 2017	$	44			7,325
Total gains (losses) realized/unrealized:
Included in earnings		—			65,824		(b)
Settlements		(14	)		—
Transfers in and/or out of Level 3 (a)		—			(59,427	)	(d)
Balance — September 30, 2017	$	30		$	13,722
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2017	$	—		$	13,684		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2016 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-BackedSecurities			CollateralizedDebt Obligations				Other Assetsand OtherLiabilities
				(In thousands)
Balance — January 1, 2016	$	74			47,393				9,879
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				104,862		(b)
Included in other comprehensive income		—			(18,268	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(23	)		(870	)			—
Transfers in and/or out of Level 3 (a)		—			—				(84,941	)	(d)
Balance — September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings    related to assets still held at    September 30, 2016	$	—			—				29,288		(b)

(a) 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.

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

(c) Reported as net unrealized losses on investment securities in the consolidated statement of comprehensive income.  The Company sold its collateralized debt obligations during the third and fourth quarters of 2016.

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

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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 15% to 90% at September 30, 2017.  As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3.  Automobile collateral is typically valued by reference to independent pricing sources based on recent sales transactions of similar vehicles, and the related nonrecurring fair value measurement adjustments have been classified as Level 2.  Collateral values for other consumer installment loans are generally estimated based on historical recovery rates for similar types of loans.  As these recovery rates are not readily observable by market participants, such valuation adjustments have been classified as Level 3.  Loans subject to nonrecurring fair value measurement were $184 million at September 30, 2017 ($105 million and $79 million of which were classified as Level 2 and Level 3, respectively), $293 million at December 31, 2016 ($153 million and $140 million of which were classified as Level 2 and Level 3, respectively) and $249 million at September 30, 2016 ($144 million and $105 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 September 30, 2017 were decreases of $16 million and $55 million for the three-month and nine-month periods ended September 30, 2017, respectively.  Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2016 were decreases of $20 million and $42 million for the three-month and nine-month periods ended September 30, 2016, 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 $36 million and $53 million at September 30, 2017 and 2016, respectively.  Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month and nine-month periods ended September 30, 2017 and 2016.

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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 significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at September 30, 2017 and December 31, 2016:

	Fair Value		Valuation Technique	Unobservable Inputs/Assumptions		Range (Weighted- Average)
	(In thousands)
September 30, 2017
Recurring fair value measurements
Privately issued mortgage-backed    securities	$	30	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		13,722	Discountedcashflow	Commitment expirations		0%-80% (28%)
December 31, 2016
Recurring fair value measurements
Privately issued mortgage-backed    securities	$	44	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		7,325	Discountedcashflow	Commitment expirations		0%-77% (30%)

(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 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:

	September 30, 2017
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,368,252			1,368,252			1,290,532		77,720			—
Interest-bearing deposits at banks		6,306,484			6,306,484			—		6,306,484			—
Trading account assets		170,516			170,516			47,927		122,589			—
Investment securities		15,073,926			15,079,756			50,917		14,916,360			112,479
Loans and leases:
Commercial loans and leases		21,743,251			21,409,984			—		—			21,409,984
Commercial real estate loans		32,914,288			32,507,319			—		223,659			32,283,660
Residential real estate loans		20,265,162			20,369,392			—		4,557,929			15,811,463
Consumer loans		13,002,433			12,935,924			—		—			12,935,924
Allowance for credit losses		(1,013,326	)		—			—		—			—
Loans and leases, net		86,911,808			87,222,619			—		4,781,588			82,441,031
Accrued interest receivable		325,982			325,982			—		325,982			—
Financial liabilities:
Noninterest-bearing deposits	$	(33,111,246	)		(33,111,246	)		—		(33,111,246	)		—
Savings and interest-checking deposits		(52,936,615	)		(52,936,615	)		—		(52,936,615	)		—
Time deposits		(7,233,518	)		(7,294,182	)		—		(7,294,182	)		—
Deposits at Cayman Islands office		(232,014	)		(232,014	)		—		(232,014	)		—
Short-term borrowings		(200,768	)		(200,768	)		—		(200,768	)		—
Long-term borrowings		(8,577,645	)		(8,630,195	)		—		(8,630,195	)		—
Accrued interest payable		(69,290	)		(69,290	)		—		(69,290	)		—
Trading account liabilities		(109,730	)		(109,730	)		—		(109,730	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	13,722			13,722			—		—			13,722
Commitments to sell real estate loans		2,333			2,333			—		2,333			—
Other credit-related commitments		(119,938	)		(119,938	)		—		—			(119,938	)
Interest rate swap agreements used for interest    rate risk management		697			697			—		697			—

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

	December 31, 2016
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
				(In thousands)
Financial assets:
Cash and cash equivalents	$	1,320,549			1,320,549			1,249,654		70,895		—
Interest-bearing deposits at banks		5,000,638			5,000,638			—		5,000,638		—
Trading account assets		323,867			323,867			46,135		277,732		—
Investment securities		16,250,468			16,244,412			301,711		15,821,176			121,525
Loans and leases:
Commercial loans and leases		22,610,047			22,239,428		—		—				22,239,428
Commercial real estate loans		33,506,394			33,129,428		—			642,590			32,486,838
Residential real estate loans		22,590,912			22,638,167		—			4,912,488			17,725,679
Consumer loans		12,146,063			12,061,590		—			—			12,061,590
Allowance for credit losses		(988,997	)		—		—			—			—
Loans and leases, net		89,864,419			90,068,613		—			5,555,078			84,513,535
Accrued interest receivable		308,805			308,805		—			308,805		—
Financial liabilities:
Noninterest-bearing deposits	$	(32,813,896	)		(32,813,896	)	—			(32,813,896	)	—
Savings and interest-checking deposits		(52,346,207	)		(52,346,207	)	—			(52,346,207	)	—
Time deposits		(10,131,846	)		(10,222,585	)	—			(10,222,585	)	—
Deposits at Cayman Islands office		(201,927	)		(201,927	)	—			(201,927	)	—
Short-term borrowings		(163,442	)		(163,442	)	—			(163,442	)	—
Long-term borrowings		(9,493,835	)		(9,473,844	)	—			(9,473,844	)	—
Accrued interest payable		(75,172	)		(75,172	)	—			(75,172	)	—
Trading account liabilities		(174,376	)		(174,376	)	—			(174,376	)	—
Other financial instruments:
Commitments to originate real estate loans for sale	$	7,325			7,325		—			—			7,325
Commitments to sell real estate loans		36,653			36,653		—			36,653		—
Other credit-related commitments		(136,295	)		(136,295	)	—			—			(136,295	)
Interest rate swap agreements used for interest    rate risk management		11,892			11,892		—			11,892		—

With the exception of marketable securities, certain off-balance sheet financial instruments and mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. The following assumptions, methods and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

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

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

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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 interest-checking deposits 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.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

12. Fair value measurements, continued

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.

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.

	September 30,		December 31,
	2017		2016
	(In thousands)
Commitments to extend credit
Home equity lines of credit	$	5,492,892		5,499,609
Commercial real estate loans to be sold		170,786		70,100
Other commercial real estate		5,749,428		6,451,709
Residential real estate loans to be sold		482,650		478,950
Other residential real estate		202,702		232,721
Commercial and other		12,677,838		12,298,473
Standby letters of credit		2,657,352		2,987,091
Commercial letters of credit		42,684		44,723
Financial guarantees and indemnification contracts		3,385,498		3,043,580
Commitments to sell real estate loans		1,052,472		1,489,237

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 $3.2 billion and $2.8 billion at September 30, 2017 and December 31, 2016, respectively.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

13. Commitments and contingencies, continued

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 September 30, 2017 the Company believes that its obligation to loan purchasers was 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 and other matters 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 proceedings.  For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements.  To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable.  Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $50 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.

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 of Notes to Financial Statements in the 2016 Annual Report.  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.  As disclosed in the 2016 Annual Report, during 2016 the Company revised its funds transfer pricing allocation related to borrowings.  Additionally, during the second quarter of 2017, the Company revised its funds transfer pricing allocation related to certain deposit categories.  As a result, prior period

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

financial information has been reclassified to provide segment information on a comparable basis, as noted in the following tables.

	Three Months Ended September 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	116,513		4,388			120,901	$	21,422			2,602			24,024
Commercial Banking		268,683		(155	)		268,528		102,796			(92	)		102,704
Commercial Real Estate		205,562		—			205,562		90,065			—			90,065
Discretionary Portfolio		114,391		(8,806	)		105,585		50,773			(5,222	)		45,551
Residential Mortgage Banking		108,576		(11,901	)		96,675		22,924			(7,059	)		15,865
Retail Banking		353,016		8,848			361,864		69,506			5,247			74,753
All Other		182,949		7,626			190,575		(7,502	)		4,524			(2,978	)
Total	$	1,349,690		—			1,349,690	$	349,984			—			349,984
	Nine Months Ended September 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	344,562		13,022			357,584	$	69,617			7,723			77,340
Commercial Banking		787,781		(423	)		787,358		309,515			(251	)		309,264
Commercial Real Estate		575,117		—			575,117		254,682			—			254,682
Discretionary Portfolio		324,195		(28,575	)		295,620		151,522			(16,947	)		134,575
Residential Mortgage Banking		309,393		(28,539	)		280,854		59,981			(16,926	)		43,055
Retail Banking		1,037,727		25,196			1,062,923		204,291			14,943			219,234
All Other		575,885		19,319			595,204		(65,065	)		11,458			(53,607	)
Total	$	3,954,660		—			3,954,660	$	984,543			—			984,543

As also described in note 22 in the 2016 Annual Report, 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 September 30
	2017								2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	130,501		919			31,408		$	120,901		1,086			24,024
Commercial Banking		267,822		840			109,797			268,528		950			102,704
Commercial Real Estate		212,014		401			97,295			205,562		463			90,065
Discretionary Portfolio		65,808		(12,346	)		31,515			105,585		(14,795	)		45,551
Residential Mortgage Banking		90,018		18,866			13,546			96,675		22,051			15,865
Retail Banking		392,542		2,668			96,329			361,864		3,052			74,753
All Other		257,858		(11,348	)		(23,967	)		190,575		(12,807	)		(2,978	)
Total	$	1,416,563		—			355,923		$	1,349,690		—			349,984

	Nine Months Ended September 30
	2017								2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	375,816		2,836			85,146		$	357,584		3,274			77,340
Commercial Banking		818,846		2,603			328,211			787,358		2,917			309,264
Commercial Real Estate		604,437		1,165			269,113			575,117		1,299			254,682
Discretionary Portfolio		216,798		(37,670	)		95,200			295,620		(43,726	)		134,575
Residential Mortgage Banking		264,120		55,221			37,206			280,854		62,955			43,055
Retail Banking		1,144,964		8,760			282,614			1,062,923		9,198			219,234
All Other		751,703		(32,915	)		(11,587	)		595,204		(35,917	)		(53,607	)
Total	$	4,176,684		—			1,085,903		$	3,954,660		—			984,543

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

14. Segment information, continued

	Average Total Assets
	Nine Months Ended September 30				Year Ended December 31
	2017		2016		2016
	(In millions)
Business Banking	$	5,596		5,442		5,456
Commercial Banking		26,699		25,363		25,592
Commercial Real Estate		22,800		20,571		21,131
Discretionary Portfolio		37,807		41,253		40,867
Residential Mortgage Banking		2,335		2,578		2,569
Retail Banking		12,519		11,739		11,840
All Other		13,317		16,951		16,885
Total	$	121,073		123,897		124,340

(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 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 $8,828,000 and $6,725,000 for the three-month periods ended September 30, 2017 and 2016, respectively, and $25,563,000 and $19,579,000 for the nine-month periods ended September 30, 2017 and 2016, 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.  That investment had no remaining carrying value at September 30, 2017 as a result of cumulative losses recognized and cash distributions received.

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 $3.2 billion and $3.5 billion at September 30, 2017 and December 31, 2016, respectively.  Revenues from those servicing rights were $4 million and $5 million for the three-month periods ended September 30, 2017 and 2016, respectively, and $13 million and $15 million for the nine-month periods ended September 30, 2017 and 2016, respectively.  The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $59.3 billion and $30.4 billion at September 30, 2017 and December 31, 2016, respectively.  Revenues earned for sub-servicing loans for Bayview Financial were $26 million and $25million for the three-month periods ended September 30, 2017 and 2016, respectively, and $74 million and $73 million for the nine-month periods ended September 30, 2017 and 2016, respectively.  In addition, the Company held $141 million and $158 million of mortgage-backed securities in its held-to-maturity portfolio at September 30, 2017 and December 31, 2016, respectively, that were securitized by Bayview Financial.  In April 2017, the Company provided a loan to Bayview Financial for $100 million at terms consistent with those offered to non-affiliated customers.  That loan was subsequently paid in full in June 2017.  Also in June 2017, a new syndicated loan facility was entered into by Bayview Financial for $750 million, of which the Company held $88 million at September 30, 2017.

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NOTES TO FINANCIAL STATEMENTS, CONTINUED

16. Recent accounting developments

Effective January 1, 2017, the Company adopted amended accounting guidance for share-based transactions.  The most significant aspect of the amended guidance that affects the Company requires that all excess tax benefits and tax deficiencies be recognized in income tax expense in the income statement and that such amounts be recognized in the period in which the tax deduction arises or in the period in which an expiration of an award occurs.  The adoption of this guidance resulted in an $18 million reduction of income tax expense for the three-month period ended March 31, 2017, that under previous accounting guidance would have been recognized directly in shareholders’ equity.  The amended accounting guidance did not have a significant impact on income tax expense in the three-month periods ended September 30 and June 30, 2017.

Effective January 2017, the Company also adopted amended accounting guidance for the transition to the equity method of accounting.  The amended guidance eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method has been in effect during all previous periods that the investment had been held.  Instead, the amended guidance requires the investor to adopt the equity method of accounting as of the date the investment first qualifies for such accounting.  The adoption of this guidance did not have a material effect on the Company’s consolidated financial position or results of operations.

In January 2017, the Company adopted two amendments to the accounting guidance for derivatives and hedging.  The first amendment clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met.  The second amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts.  An entity performing the assessment is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence and no longer has to assess whether the event that triggers the ability to exercise the option is related to interest rates or credit risks.  The adoption of this guidance did not have a material effect on the Company’s consolidated financial position or results of operations.

In August 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance expanding and clarifying hedge accounting for nonfinancial and financial risk components, aligning the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements, and simplifying the requirements for assessing effectiveness in a hedging relationship.  The guidance eliminates the concept of benchmark interest rates for cash flow hedges of interest rate risk and permits variability in cash flows attributable to the contractually specified interest rate to be designated as the hedged risk in a cash flows hedge of a variable-rate financial instrument.  For a fair value hedge of interest rate risk, the amended guidance added the Securities Industry and Financial Markets Association Municipal Swap Rate as an eligible benchmark interest rate.  The amendments also change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk by (1) for a closed portfolio of prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, permitting an amount that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flow (“last of layer” method) to be designated as the hedged item, (2) permitting the change in fair value of the hedged item to be measured on the basis of the benchmark interest rate component of the contractual coupon cash flows rather than the full contractual coupon cash flows, (3) permitting the hedged item in a partial-term fair value hedge to be measured by assuming the hedged item has a term that reflects only the designated cash flows being hedged, and (4) for prepayable financial instruments, permitting the consideration of only how changes in the benchmark interest rate affect a decision to settle a debt instrument before its scheduled maturity in calculating the change in fair value of the hedged item attributable to interest rate risk.  As it relates to aligning the recognition and

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16. Recent accounting developments, continued

presentation of the effects of the hedging instrument and hedged item in the financial statements, the amended guidance requires (1) the entire change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness to be presented in the same income statement line item that is used to present the earnings effect of the hedged item in a fair value hedge and the hedged transaction in a cash flow hedge and (2) for cash flow hedges, the entire change in fair value of the hedging instrument to be included in other comprehensive income (hedge ineffectiveness no longer will be recognized in earnings for cash flow hedges) and reclassified to earnings when the hedged forecasted transaction effects earnings.  From the perspective of simplifying the requirements for assessing effectiveness in a hedging relationship, the amendments permit (1) qualitative subsequent assessments of hedge effectiveness when the facts and circumstances related to the hedging relationship have not changed, (2) initial prospective quantitative assessments at any time after hedge designation up to the first quarterly effectiveness testing date, and (3) application of the long-haul method for assessing hedge effectiveness if the shortcut method was initially applied and is no longer appropriate. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, with early adoption permitted.  If adopted in an interim period, the effects of the adoption should be reflected as of the beginning of the fiscal year of adoption.  For cash flow hedges existing at the date of adoption, a cumulative-effect adjustment should be applied related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments.  The amended presentation and disclosure guidance is required only prospectively.  The Company is evaluating when it will adopt the amended guidance and does not expect such adoption will have a material impact on its consolidated financial statements.

In May 2017, the FASB issued amended guidance relating to which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting.  The guidance requires an entity to account for the effects of a modification unless all the following criteria are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award was modified.  If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award was modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award was modified.  The guidance is effective for annual periods; and interim periods within those annual periods beginning after December 15, 2017, and should be applied on a prospective basis to an award modified on or after the adoption date. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued amended guidance requiring the premium on callable debt securities held at a premium to be amortized to the earliest call date.  The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity.  The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, with early adoption permitted.  If adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.  The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued amended guidance requiring the service cost component of the net periodic pension cost and net periodic postretirement benefit cost to be reported in the same line item in the income statement as other compensation costs arising from services rendered by the pertinent employees during the period.  The amendments also require that the other components of net benefit costs be presented separately from the service cost

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16. Recent accounting developments, continued

component.  The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017, using a retrospective transition method for the presentation of the service cost and other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement.  The amendments allow for a practical expedient that permits the use of the amounts disclosed in the Company’s pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.  The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued amended guidance eliminating step 2 from the goodwill impairment test. Under the amendments to the guidance, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss recognized, however, should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.  The guidance is effective for annual periods or any interim goodwill impairment tests beginning after December 15, 2019 using a prospective transition method. Early adoption is permitted. The Company does not expect the guidance will have a material impact on its consolidated financial statements, unless at some point in the future one of its reporting units were to fail step 1 of the goodwill impairment test.

In January 2017, the FASB issued amended guidance clarifying the definition of a business for purposes of evaluating whether transactions would be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a screen to determine when a set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar assets, the set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output, and (2) remove the evaluation of whether a market participant could replace missing elements. The guidance is effective for annual
periods and interim periods within those annual periods beginning after December 15, 2017 using a prospective  transition method. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In November 2016, the FASB issued amended guidance for the presentation of restricted cash in the statement of cash flows.  The guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.  In addition, when cash, cash equivalents, and restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, the line items and amounts must be presented on the face of the statement of cash flows or disclosed in the notes to the financial statements.  Information about the nature of restrictions on an entity’s cash and cash equivalents must also be disclosed.  The guidance, which applies only to the consolidated statement of cash flows, is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017, using a retrospective transition method. 

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In August 2016, the FASB issued amended guidance for how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The guidance addresses the following eight specific cash flow issues: (1) cash payments for debt extinguishment costs should be classified as cash outflows for financing activities; (2) for zero-coupon debt instruments, the portion of the cash payment attributable to the accreted interest should be classified as a cash outflow for operating activities; (3) contingent consideration payments made after a business combination should be classified based on the timing of the payment; (4) cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; (5)  cash proceeds received from the settlement of corporate-owned and bank-owned life insurance policies should be classified as cash inflows from investing activities; (6) when the equity method is applied, an accounting policy election should be made to classify distributions received using either the cumulative earnings approach or the nature of the distribution approach; (7) cash receipts from payments on a transferor’s beneficial interests obtained in a securitization of financial assets should be classified as cash inflows from investing activities; and (8) the classification of cash receipts and payments that have aspects of more than one class of cash flows should be determined by applying specific guidance in GAAP.  The guidance, which only impacts the presentation of the consolidated statement of cash flows, is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. 

In June 2016, the FASB issued amended guidance for the measurement of credit losses on certain financial assets. The amended guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected.  The allowance for credit losses will represent a valuation account that is deducted from the amortized cost basis of the financial assets to present their net carrying value at the amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets as well as expected increases or decreases of expected credit losses that have taken place during the period. When determining the allowance, expected credit losses over the contractual term of the financial asset(s) (taking into account prepayments) will be estimated considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount.  The amended guidance also requires recording an allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination.  The initial allowance for these assets will be added to the purchase price at acquisition rather than being reported as an expense.  Subsequent changes in the allowance will be recorded through the income statement as an expense adjustment.  In addition, the amended guidance requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The calculation of credit losses for available-for-sale securities will be similar to how it is determined under existing guidance.  The guidance is effective for annual periods and interim periods within those annual periods beginning after

December 15, 2019.  The Company is assessing the new guidance to determine what modifications to existing credit estimation processes may be required.  The Company expects that the new guidance will result in an increase in its allowance for credit losses as a result of considering credit losses over the expected life of its loan portfolios. Increases in the level of the allowance for credit losses will also reflect new requirements to include the nonaccretable principal difference on purchased credit impaired loans and estimated credit losses on investment securities classified as held-to-maturity, if any.  The Company is still evaluating the extent of the increase to the allowance for credit losses and the impact to its financial statements. 

In February 2016, the FASB issued guidance related to the accounting for leases.  The core principle of the guidance is that all leases create an asset and a liability for the lessee and, therefore, lease assets and lease liabilities should be recognized in the balance sheet.  Lease assets will be recognized as a right-of-use asset and lease liabilities will be recognized as a liability to make lease payments.  While the guidance requires all leases to be recognized in the balance sheet, there continues to be a differentiation between finance leases and operating leases for purposes of income statement recognition and cash flow statement presentation.  For finance leases, interest on the lease liability

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16. Recent accounting developments, continued

and amortization of the right-of-use asset will be recognized separately in the statement of income.  Repayments of principal on those lease liabilities will be classified within financing activities and payments of interest on the lease liability will be classified within operating activities in the statement of cash flows.  For operating leases, a single lease cost is recognized in the statement of income and allocated over the lease term, generally on a straight-line basis.  All cash payments are presented within operating activities in the statement of cash flows.  The accounting applied by lessors is largely unchanged from existing GAAP, however, the guidance eliminates the accounting model for leveraged leases for leases that commence after the effective date of the guidance.  The guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years.  The Company occupies certain banking offices and uses certain equipment under noncancelable operating lease agreements, which currently are not reflected in its consolidated balance sheet.  Upon adoption of the guidance, the Company expects to report increased assets and increased liabilities as a result of recognizing right-of-use assets and lease liabilities on its consolidated balance sheet. The Company was committed to $467  million of minimum lease payments under noncancelable operating lease agreements at December 31, 2016.  The Company does not expect the new guidance will have a material impact to its consolidated statement of income.

In January 2016, the FASB issued amended guidance related to recognition and measurement of financial assets and liabilities. The amended guidance requires that equity investments (excluding those accounted for under the equity method of accounting or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net income. An entity can elect to measure equity investments that do not have readily determinable fair values at cost less impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The impairment assessment of equity investments without readily determinable fair values is simplified by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates impairment exists, an entity is required to measure the investment at fair value. The guidance eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Further, the guidance requires public entities to use the exit price when measuring the fair value of financial instruments for disclosure purposes. The guidance also requires an entity to present separately in other comprehensive income, a change in the instrument-specific credit risk when the entity has elected to measure a liability at fair value in accordance with the fair value option. Separate presentation of financial assets and liabilities by measurement category and type of instrument on the balance sheet or accompanying notes to the financial statements is required. The guidance also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017.  The Company does hold certain equity securities in its available-for-sale portfolio.  Upon adoption of this guidance, fair value changes in such equity securities will be recognized in the consolidated statement of income as opposed to accumulated other comprehensive income where they are recognized under current accounting guidance.  Although those securities have historically fluctuated in value, how those securities could change in value in the future is not predictable.

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,

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timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, 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 “modified retrospective approach”).  The Company expects to adopt the revenue recognition guidance in the first quarter of 2018. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance.  With respect to noninterest income, the Company has identified revenue streams within the scope of the guidance and is in the final stages of its accounting analysis of the underlying contracts. The Company does not presently expect that changes in the timing of revenue recognition will be material to the amount of annual revenue recognized by the Company.  

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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 third quarter of 2017 of $356 million or $2.21 of diluted earnings per common share, compared with $350 million or $2.10 of diluted earnings per common share in the similar quarter of 2016.  Net income in the second quarter of 2017 totaled $381 million or $2.35 of diluted earnings per common share.  Basic earnings per common share were $2.22 in the recent quarter, compared with $2.10 and $2.36 in the third quarter of 2016 and the second quarter of 2017, respectively. For the first nine months of 2017, net income was $1.09 billion or $6.69 of diluted earnings per common share, compared with $985 million or $5.80 of diluted earnings per common share in the corresponding 2016 period.  Basic earnings per common share were $6.71 for the first nine months of 2017, compared with $5.82 for the initial nine months of 2016.

The annualized rate of return on average total assets for M&T and its consolidated subsidiaries (“the Company”) in the third quarter of 2017 was 1.18%, compared with 1.12% in the year-earlier quarter and 1.27% in the second quarter of 2017.  The annualized rate of return on average common shareholders’ equity was 8.89% in the recently completed quarter, compared with 8.68% and 9.67% in the third quarter of 2016 and the second 2017 quarter, respectively. During the nine-month period ended September 30, 2017, the annualized rates of return on average assets and average common shareholders’ equity were 1.20% and 9.15%, respectively, compared with 1.06% and 8.17%, respectively, in the similar period of 2016.

On October 9, 2017, Wilmington Trust Corporation, a wholly owned subsidiary of M&T, reached an agreement with the U.S. Attorney’s Office for the District of Delaware related to alleged conduct that took place between 2009 and 2010 prior to the acquisition of Wilmington Trust Corporation by M&T.  Under terms of the agreement, Wilmington Trust Corporation was required to pay $60 million and settled the government’s claims.  The settlement amount included $16 million previously paid to the U.S. Securities and Exchange Commission in a related action.  The result was a payment of $44 million that is not deductible for income tax purposes.  Wilmington Trust Corporation did not admit any liability.  

As of September 30, 2017, the Company increased the reserve for legal matters by $50 million.  That increase, coupled with the non-deductible nature of the $44 million payment, reduced net income by $48 million, or $.31 of diluted earnings per common share, in the third quarter of 2017.  

During the first quarter of 2017, M&T adopted new accounting guidance for share-based transactions.  That guidance requires that all excess tax benefits and tax deficiencies associated with share-based compensation be recognized in income tax expense in the income statement.  Previously, tax effects resulting from changes in M&T’s share price subsequent to the grant date were recorded through shareholders’ equity at the time of vesting or exercise.  The adoption of the amended accounting guidance resulted in an $18 million reduction of income tax expense or $.12 of diluted earnings per common share in the initial 2017 quarter.  The impact of that change in accounting on income tax expense was not significant in the second and third quarters of 2017.

During the third quarter of 2016, the Company sold substantially all of its collateralized debt obligations with an amortized cost of $28 million held in the available-for-sale investment securities portfolio, resulting in an after-tax gain of $17 million ($28 million pre-tax), or $.11 per diluted common share.  Those securities, which had been obtained in previous acquisitions, were sold in response to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) commonly referred to as the “Volcker Rule.”  There were no significant gains or losses on investment securities during the second or third quarters of 2017.

On June 28, 2017, M&T announced that the Federal Reserve did not object to M&T’s proposed 2017 Capital Plan.  That capital plan includes the repurchase of up to $900 million of common shares during the four-quarter period starting on July 1, 2017, an increase in the quarterly common stock dividend in the second quarter of 2018 of up to $.05 per share to $.80 per share, and the issuance of subordinated capital notes in the third quarter of 2017 of $500 million. M&T may continue to pay dividends and interest on equity and debt instruments included in regulatory capital, including preferred stock, trust preferred securities and subordinated debt that were outstanding at December 31, 2016, consistent with the contractual terms of those instruments.  Dividends are subject to declaration

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by M&T’s Board of Directors.  In July 2017, M&T’s Board of Directors authorized a new stock repurchase program to repurchase up to $900 million of shares of M&T’s common stock subject to all applicable regulatory limitations, including those set forth in M&T’s 2017 Capital Plan. In accordance with M&T’s 2017 Capital Plan, during the third quarter of 2017, M&T repurchased 1,382,746 shares of its common stock at a cost of $225 million and issued $500 million of subordinated capital notes.  In accordance with M&T’s revised 2016 Capital Plan, during the second quarter of 2017, M&T repurchased 1,409,807 shares of its common stock at a total cost of $225 million and in the first quarter of 2017, M&T repurchased 3,233,196 shares of its common stock at a cost of $532 million and increased the quarterly common stock dividend from $.70 to $.75 per share. In the aggregate, M&T repurchased 6,025,749 shares of its common stock at a cost of $982 million during the first three quarters of 2017 and 5,307,595 shares for $604 millionduring the first three quarters of 2016.

On July 25, 2017, the Federal Reserve Bank of New York terminated its written agreement with M&T and its principal bank subsidiary, M&T Bank, that had been entered into in June 2013.  Under the terms of that agreement, M&T and M&T Bank implemented an enhanced compliance risk management program designed to ensure compliance with the Bank Secrecy Act and anti-money-laundering laws and regulations (“BSA/AML”) and took other steps to enhance their compliance practices.

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 expenses associated with merging acquired operations into the Company, since such items are considered by management to be “nonoperating” in nature. Those merger-related expenses generally consist of professional services and other temporary help fees associated with the actual or planned conversion of systems and/or integration of operations; costs related to branch and office consolidations; costs related to termination of existing contractual arrangements to purchase various services; initial marketing and promotion expenses designed to introduce the Company to its new customers; severance; incentive compensation costs; travel costs; and printing, supplies and other costs of completing the transactions and commencing operations in new markets and offices. Merger-related expenses associated with the 2015 acquisition of Hudson City Bancorp, Inc. (“Hudson City”) were $36 million ($22 million after-tax effect) in the first nine months of 2016 ($.14 per diluted common share).  There were no merger-related expenses during the third quarter of 2016 or in the first nine months of 2017. Although “net operating income” as defined by M&T is not a GAAP measure, M&T’s management believes that this information helps investors understand the effect of acquisition activity in reported results.

Net operating income was $361 million in the third quarter of 2017, compared with $356 million in the year-earlier quarter. Diluted net operating earnings per common share for the recent quarter were $2.24, compared with $2.13 in the third quarter of 2016. Net operating income and diluted net operating earnings per common share were $386 million and $2.38, respectively, in the second quarter of 2017. For the first nine months of 2017, net operating income and diluted net operating earnings per common share were $1.10 billion and $6.78, respectively, compared with $1.03 billion and $6.07, respectively, in the corresponding 2016 period.

Net operating income in the recent quarter expressed as an annualized rate of return on average tangible assets was 1.25%, compared with 1.18% in the year-earlier quarter and 1.33% in the second quarter of 2017. Net operating income represented an annualized return on average tangible common equity of 13.03% in 2017’s third quarter, compared with 12.77% in the similar quarter of 2016 and 14.18% in 2017’s second quarter. For the first nine months of 2017, net operating income represented an annualized return on average tangible assets and average tangible common shareholders’ equity of 1.26% and 13.42%, respectively, compared with 1.15% and 12.36%, respectively, in the first nine months of 2016.

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

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Taxable-equivalent Net Interest Income

Taxable-equivalent net interest income was $966 million in the third quarter of 2017, 12% higher than $865 million in the year-earlier quarter. That growth resulted primarily from a widening of the net interest margin, or taxable-equivalent net interest income expressed as an annualized percentage of average earning assets, to 3.53% in the recent quarter from 3.05% in the corresponding 2016 period. The improvement in the net interest margin was largely the result of the higher interest rate environment due to actions initiated by the Federal Reserve in mid-December 2016, mid-March 2017 and mid-June 2017 to raise its target Federal funds rate by .25% at each of those dates. Taxable-equivalent net interest income in the recent quarter increased from $947 million in the second 2017 quarter, predominantly due to an 8 basis point (hundredths of one percent) widening of the net interest margin from 3.45% in the second quarter of 2017.  That widening reflected the impact in the recent quarter of the June interest rate increase initiated by the Federal Reserve.

For the first three quarters of 2017, taxable-equivalent net interest income was $2.84 billion, 8% higher than $2.61 billion in the similar period of 2016.  That increase was primarily due to a 32 basis point widening of the net interest margin to 3.44% in 2017 from 3.12% in 2016. Also contributing to the higher taxable-equivalent net interest income in the 2017 period was growth in average loan balances, which increased $986 million from the first nine months of 2016.

Average loans and leases totaled $88.4 billion in the recent quarter, compared with $88.7 billion in the third quarter of 2016.  Commercial loans and leases averaged $21.7 billion in the third quarter of 2017, $254 million or 1% above $21.5 billion in the year-earlier quarter.  Average commercial real estate loans were $33.3 billion in the recent quarter, up $2.0 billion, or 6%, from $31.3 billion in the third quarter of 2016.  Reflecting ongoing repayments of loans obtained in the acquisition of Hudson City, average residential real estate loans declined $3.5 billion, or 14%, to $20.6 billion in the third quarter of 2017 from $24.1 billion in the year-earlier quarter.  Included in average residential real estate loans were loans held for sale, which averaged $346 million in the recent quarter and $374 million in the corresponding 2016 quarter.  Consumer loans averaged $12.8 billion in the third quarter of 2017, an increase of $844 million, or 7%, from $11.9 billion in the year-earlier quarter, predominantly due to growth in average automobile and recreational vehicle loans, partially offset by lower outstanding balances of home equity lines of credit.

Average loan and lease balances in the third quarter of 2017 declined $882 million from $89.3 billion in the second quarter of 2017.  As compared with 2017’s second quarter, average commercial loan and lease balances decreased $616 million, or 3%, in the recent quarter and average residential real estate loans in the third quarter of 2017 declined $710 million, or 3%, reflecting the continued pay down of loans obtained in the acquisition of Hudson City, while commercial real estate loan average balances increased $43 million, or less than 1%, and average consumer loans increased $400 million, or 3%. The accompanying table summarizes quarterly changes in the major components of the loan and lease portfolio.

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AVERAGE LOANS AND LEASES

(net of unearned discount)

			Percent Increase
			(Decrease) from
	3rd Qtr.		3rd Qtr.				2ndQtr.
	2017		2016				2017
	(In millions)
Commercial, financial, etc.	$	21,734		1		%		(3	)	%
Real estate — commercial		33,257		6				—
Real estate — consumer		20,609		(14	)			(3	)
Consumer
Automobile		3,328		19				5
Home equity lines and loans		5,413		(6	)			(1	)
Other		4,045		19				9
Total consumer		12,786		7				3
Total	$	88,386		—		%		(1	)	%

For the first nine months of 2017, average loans and leases totaled $89.1 billion, up $986 million, or 1%, from $88.2 billion in the corresponding period of 2016.  Growth in commercial real estate loans, commercial loans and leases and consumer loans were partially offset by a decline in residential real estate loans.

The investment securities portfolio averaged $15.4 billion in the recent quarter, up $1.1 billion, or 8%, from $14.4 billion in the year-earlier quarter, but $470 million lower than the $15.9 billion averaged in the second quarter of 2017.  For the first nine months of 2017 and 2016, investment securities averaged $15.8 billion and $14.9 billion, respectively.  Those changes reflect the net effect of purchases, offset by maturities and pay downs of mortgage-backed securities.  During the second quarter of 2017, the Company purchased $658 million of mortgage-backed securities, predominantly Ginnie Mae securities, and $214 million of U.S. Treasury notes.  The Company sold $512 million of available-for-sale Fannie Mae and Freddie Mac mortgage-backed securities during 2017’s second quarter largely due to the limitations on the amount of Fannie Mae and Freddie Mac mortgage-backed securities that are permitted to be included in the highest tier of “high quality liquid assets” for the Liquidity Coverage Ratio (“LCR”) calculation. During the third quarter of 2016, the Company sold substantially all of its collateralized debt obligations that were held in the available-for-sale investment securities portfolio for a gain of approximately $28 million.  Those securities were sold in large part in response to the provisions of the Volcker Rule.  During the third quarter of 2017, there were no significant purchases or sales of investment securities.  The investment securities portfolio is largely comprised of residential mortgage-backed securities, debt securities issued by municipalities, trust preferred securities issued by certain financial institutions, and shorter-term U.S. Treasury and federal agency notes.  When purchasing investment securities, the Company considers its liquidity position and its overall interest-rate risk profile as well as the adequacy of expected returns relative to risks assumed, including prepayments.  The Company manages its investment securities portfolio, in part, to satisfy the requirements of the LCR that became effective in January 2016.  The LCR is intended to ensure that banks hold a sufficient amount of “high quality liquid assets” to cover the anticipated net cash outflows during a hypothetical acute 30-day stress scenario. For additional information concerning the LCR rules, refer to Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2016 under the heading “Liquidity.”

In addition to the sales noted above, the Company may occasionally sell 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 amounts of investment securities held by the Company are influenced by such factors as demand for loans, which generally yield more than investment securities, ongoing repayments, the levels of deposits, and management of liquidity (including the LCR) and balance sheet size and resulting capital ratios.

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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 nine-month periods ended September 30, 2017 or 2016.  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 and federal funds sold.  Those other earning assets in the aggregate averaged $4.8 billion in the two most recent quarters, compared with $9.8 billion in the third quarter of 2016.  Interest-bearing deposits at banks averaged $4.7 billion during each of the quarters ended September 30, 2017 and June 30, 2017 and $9.7 billion in the quarter ended September 30, 2016.  For the nine-month periods ended September 30, 2017 and 2016, average balances of interest-bearing deposits at banks were $5.2 billion and $8.9 billion, respectively.  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 (including the LCR) and balance sheet size and resulting capital ratios.  The amounts of interest-bearing deposits at banks at the respective dates were predominantly comprised of deposits held at the Federal Reserve Bank of New York.  The levels of those deposits often fluctuate due to changes in trust-related deposits of commercial entities, purchases or maturities of investment securities, or borrowings to manage the Company’s liquidity.

As a result of the changes described herein, average earning assets totaled $108.6 billion in the most recent quarter, compared with $112.9 billion in the year-earlier quarter and $110.0 billion in the second quarter of 2017.  Average earning assets aggregated $110.2 billion and $112.0 billion during the nine-month periods ended September 30, 2017 and 2016, respectively.

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 $91.0 billion in the third quarter of 2017, compared with $93.2 billion in the year-earlier quarter and $92.0 billion in the second quarter of 2017.  The decline in average core deposits in the third quarter of 2017 as compared with the year-earlier quarter reflected a $4.1 billion, or 37%, decrease in time deposits, predominantly related to maturities of relatively high-rate deposits obtained in the acquisition of Hudson City, partially offset by growth in noninterest-bearing deposits, in part reflecting balances associated with trust customers.  As compared with 2017’s second quarter, the most significant factor for the decrease in average core deposits in the recent quarter was the continued decline of average time deposits, largely associated with deposits obtained in the Hudson City acquisition.  The following table provides an analysis of quarterly changes in the components of average core deposits.

AVERAGE CORE DEPOSITS

			Percent Increase
			(Decrease) from
	3rd Qtr.		3rd Qtr.				2ndQtr.
	2017		2016				2017
	(In millions)
Savings and interest-checking deposits	$	52,056		1		%		(1	)	%
Time deposits		6,897		(37	)			(10	)
Noninterest-bearing deposits		32,005		4				—
Total	$	90,958		(2	)	%		(1	)	%

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The Company also receives funding from other deposit 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, excluding brokered deposits, averaged $717 million in the recent quarter, compared with $1.3 billion in the third quarter of 2016 and $808 million in the second 2017 quarter.  Cayman Islands office deposits averaged $169 million, $220 million and $163 million for the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively.  Brokered time deposits averaged $59 million in each of the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017. The Company also had brokered savings and interest-bearing transaction accounts, which in the aggregate averaged $1.2 billion, $1.0 billion and $1.1 billion during the third quarter of 2017, the corresponding 2016 quarter and the second quarter of 2017, respectively. The levels of brokered 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 is 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.  Short-term borrowings represent borrowing arrangements that at the time they were entered into had a contractual maturity of less than one year.  Average short-term borrowings totaled $244 million in the recent quarter, compared with $231 million in the third quarter of 2016 and $212 million in the second quarter of 2017.  Included in short-term borrowings were unsecured federalfunds borrowings, which generally mature on the next business day, that averaged $139 million and $160 million in the third quarters of 2017 and 2016, respectively, and $141 million in the second quarter of 2017.

Long-term borrowings averaged $8.0 billion in the recent quarter, compared with $10.3 billion in the year-earlier quarter and $8.3 billion in the second quarter of 2017.  M&T Bank has a Bank Note Program whereby M&T Bank may offer unsecured senior and subordinated notes. Average balances of senior notes outstanding under that program were $4.7 billion, $5.2 billion and $4.8 billion during the three-month periods ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively.  During August 2017, M&T Bank issued $750 million of 2.05% fixed rate senior notes that mature in 2020.  During May 2017, M&T Bank issued $650 million of fixed rate and $250 million of variable rate senior notes that mature in 2022.  During June 2017, M&T Bank redeemed $750 million of 1.40% fixed rate senior notes. The notes had a maturity date of July 25, 2017 and were redeemable on or after the 30th day prior to the maturity date.   Outstanding balances of the senior unsecured notes were $5.0 billion at September 30, 2017 and $5.2 billion at December 31, 2016.  Also included in average long-term borrowings were amounts borrowed from the Federal Home Loan Banks of New York, Atlanta and Pittsburgh of $580 million in the recent quarter, compared with $1.2 billion and $1.0 billion in the third quarter of 2016 and the second quarter of 2017, respectively.  Subordinated capital notes included in long-term borrowings averaged $1.8 billion in the recent quarter and $1.5 billion during each of the quarters ended September 30, 2016 and June 30, 2017.  During August 2017, M&T Bank issued $500 million of 3.40% fixed rate subordinated capital notes that mature in 2027 in accordance with M&T’s 2017 Capital Plan.  Junior subordinated debentures associated with trust preferred securities that were included in average long-term borrowings totaled $518 million in each of the two most recent quarters, compared with $516 million in the third quarter of 2016.  Additional 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 $427 million in the recently completed quarter, compared with $1.9 billion in the year-earlier quarter and $430 million in the second quarter of 2017.  The lower average balances of repurchase agreements in the 2017 periods as compared with the third quarter of 2016 reflect maturities.  The repurchase agreements held at September 30, 2017 totaled $425 million and have various repurchase dates through 2020, 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 September 30, 2017, interest rate swap agreements were used to hedge approximately $5.0 billion of outstanding fixed rate long-term borrowings. During the third quarter of 2017, the Company entered into $1.3 billion of interest rate swap agreements to hedge the senior notes and subordinated capital notes issued in

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August 2017. In the second quarter of 2017, the Company entered into $2.8 billion of interest rate swap agreements to hedge the aforementioned senior notes issued during that quarter and certain existing fixed rate 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 3.32% in the recent quarter, compared with 2.85% in the third quarter of 2016.  The yield on earning assets during the third quarter of 2017 was 3.89%, up 45 basis points from 3.44% in the year-earlier period, while the rate paid on interest-bearing liabilities decreased two basis points to .57% in the recent quarter from .59% in the similar 2016 period.  In the second quarter of 2017, the net interest spread was 3.27%, the yield on earning assets was 3.79% and the rate paid on interest-bearing liabilities was .52%.  For the first nine months of 2017, the net interest spread was 3.25%, up 31 basis points from the year-earlier period.  The yield on earning assets and the rate paid on interest-bearing liabilities for the nine-month period ended September 30, 2017 were 3.79% and .54%, respectively, compared with 3.50% and .56%, respectively, in the corresponding 2016 period.  The widening of the net interest spread in the recent quarter as compared with the third quarter of 2016 and second quarter of 2017 and in the first nine months of 2017 as compared with the corresponding nine months of 2016 was largely due to the effect of increases in short-term interest rates initiated by the Federal Reserve in mid-December 2016, mid-March 2017 and mid-June 2017 that contributed to higher yields on loans and leases.

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 $39.2 billion in the recent quarter, compared with $37.3 billion in the third quarter of 2016 and $39.1 billion in the second quarter of 2017.  The increases in average net interest-free funds in the two most recent quarters as compared with the third quarter of 2016 reflect higher average balances of noninterest-bearing deposits.  Those deposits averaged $32.0 billion, $30.8 billion and $31.9 billion in the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively.  During the first nine months of 2017 and 2016, average net interest-free funds aggregated $39.6 billion and $36.0 billion, respectively.  The growth in average noninterest-bearing deposits since the third quarter of 2016 reflects, in part, higher deposits of trust customers.  Shareholders’ equity averaged $16.3 billion and goodwill and core deposit and other intangible assets averaged $4.7 billion in each of the three-month periods ended September 30, 2017, September 30, 2016 and June 30, 2017.  Cash surrender value of bank owned life insurance averaged $1.8 billion in the recent quarter, compared with $1.7 billion during each of the quarters ended September 30, 2016 and June 30, 2017.  Increases in the cash surrender value of bank owned life insurance and benefits received are not included in interest income, but rather are recorded in “other revenues from operations.”  The contribution of net interest-free funds to net interest margin was .21% in the third quarter of 2017, compared with .20% and .18% in the third quarter of 2016 and the second quarter of 2017, respectively.  That contribution for the first nine months of 2017 and 2016 was .19% and .18%, respectively.

Reflecting the changes to the net interest spread and the contribution of interest-free funds as described herein, the Company’s net interest margin was 3.53% in the third quarter of 2017, compared with 3.05% in the corresponding 2016 period and 3.45% in the second quarter of 2017. During the first nine months of 2017 and 2016, the net interest margin was 3.44% and 3.12%, respectively. Future changes in market interest rates or spreads, as well as changes in the composition of the Company’s portfolios of earning assets and interest-bearing liabilities that result in reductions in spreads, could adversely impact the Company’s net interest income and net interest margin.

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 earning assets and interest-bearing liabilities.  Periodic settlement amounts arising from these agreements are reflected in either the yields earned on assets or the rates paid on interest-bearing liabilities.  The notional amount of interest rate swap agreements entered into for interest rate risk management purposes was $7.0 billion at September 30, 2017,

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compared with $1.4 billion and $900 million at September 30, 2016 and December 31, 2016, respectively. 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.  The $6.1 billion increase in notional amount from December 31, 2016 reflects additions of $2.0 billion of interest rate swaps designated as cash flow hedges of variable rate commercial real estate loans and $4.1 billion of interest rate swaps designated as fair value hedges of fixed rate long-term borrowings.  There were no interest rate swap agreements designated as cash flow hedges at September 30, 2016 or December 31, 2016.

In a fair value hedge, the fair value of the derivative (the interest rate swap agreement) and changes in the fair value of the hedged item are recorded in the Company’s consolidated balance sheet with the corresponding gain or loss recognized in current earnings.  The difference between changes in the fair value of the interest rate swap agreements and the hedged items represents hedge ineffectiveness and is recorded in “other revenues from operations” in the Company’s consolidated statement of income.  In a cash flow hedge, unlike in a fair value hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings.  The ineffective portion of the gain or loss is reported in “other revenues from operations” immediately.  The amounts of hedge ineffectiveness recognized during each of the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017 were not material to the Company’s consolidated results of operations. The estimated aggregate net fair value of interest rate swap agreements designated as fair value hedges represented losses (without consideration of any settlement payments) of approximately $12 million at September 30, 2017, compared with gains (without consideration of any settlement payments) of $21 million at September 30, 2016, $12 million at December 31, 2016 and $2 million at June 30, 2017.  The fair values of such interest rate swap agreements were substantially offset by changes in the fair values of the hedged items.  The estimated fair values of the interest rate swap agreements designated as cash flow hedges were net losses (without consideration of any settlement payments) of approximately $3.4 million at September 30, 2017 and $1.5 million at June 30, 2017.  Net of applicable income taxes, the amount of such losses reflected in “accumulated other comprehensive income, net” in the Company’s consolidated balance sheet were approximately $2 million and $1 million at September 30 and June 30, 2017, respectively.  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 September 30, 2017 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, periodic settlements and counterparty postings of $5 million of collateral with the Company.

The weighted-average rates to be received and paid under interest rate swap agreements currently in effect were 2.29% and 1.81% respectively, at September 30, 2017.  The average notional amounts of interest rate swap agreements entered into for interest rate risk management purposes, the related effect on net interest income and margin, and the weighted-average interest rates paid or received on those swap agreements are presented in the accompanying table.  Additional information about the Company’s use of interest rate swap agreements and other derivatives is included in note 10 of Notes to Financial Statements.

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INTEREST RATE SWAP AGREEMENTS

	Three Months Ended September 30
.	2017							2016
	Amount			Rate(a)				Amount			Rate(a)
	(Dollars in thousands)
Increase (decrease) in:
Interest income	$	1,181			—		%	$	—			—		%
Interest expense		(6,059	)		(.03	)			(9,462	)		(.05	)
Net interest income/margin	$	7,240			.03		%	$	9,462			.03		%
Average notional amount	$	6,352,174						$	1,400,000
Rate received (b)					2.26		%					4.42		%
Rate paid (b)					1.76		%					1.68		%

	Nine Months Ended September 30
	2017							2016
	Amount			Rate(a)				Amount			Rate(a)
	(Dollars in thousands)
Increase (decrease) in:
Interest income	$	2,275			—		%	$	—			—		%
Interest expense		(15,611	)		(.03	)			(29,593	)		(.05	)
Net interest income/margin	$	17,886			.02		%	$	29,593			.04		%
Average notional amount	$	3,807,326						$	1,400,000
Rate received (b)					2.38		%					4.42		%
Rate paid (b)					1.74		%					1.58		%

(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 bank subsidiaries have access to additional funding sources through borrowings from the FHLB of New York, lines of credit with the Federal Reserve Bank of New York, the previously noted Bank Note Program, and other available borrowing facilities.  The Company has, from time to time, issued subordinated capital notes to provide liquidity and enhance regulatory capital ratios. Such notes generally qualify under the Federal Reserve Board’s risk-based capital guidelines for inclusion in the Company’s regulatory capital. However, pursuant to the Dodd-Frank Act, the Company’s junior subordinated debentures associated with trust preferred securities have been phased-out of the definition of Tier 1 capital. Beginning January 1, 2016 those instruments are considered Tier 2 capital and are only includable in total regulatory 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 $134 million, $159 million and $112 million at September 30, 2017, September 30, 2016 and December 31, 2016, respectively.  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 $232 million at September 30, 2017, $223 million at September 30, 2016 and $202 million at December 31, 2016.  The Company has also benefited from the placement of brokered deposits.  The Company had brokered savings and interest-bearing checking deposit accounts which totaled approximately $1.3 billion at September 30, 2017, $1.1 billion at September 30, 2016 and $1.2 billion at December 31, 2016.  Brokered time deposits were not a significant source of funding as of those dates.

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

Certain customers of the Company obtain financing through the issuance of variable rate demand bonds (“VRDBs”).  The VRDBs are generally enhanced by letters of credit provided by M&T Bank.  M&T Bank oftentimes acts as remarketing agent for the VRDBs and, at its discretion, may from time-to-time own some of the VRDBs while such instruments are remarketed.  When this occurs, the VRDBs are classified as trading account assets in the Company’s consolidated balance sheet.  Nevertheless, M&T Bank is not contractually obligated to purchase the VRDBs.  There were $2 million of VRDBs in the Company’s trading account at September 30, 2017, compared with $73 million at September 30, 2016 and $30 million at December 31, 2016.  The total amount of VRDBs outstanding backed by M&T Bank letters of credit was $1.2 billion at September 30, 2017, compared with $1.6 billion and $1.3 billion at September 30, 2016 and December 31, 2016, respectively.  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 that 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 bank subsidiaries, which are subject to various regulatory limitations.  Dividends from any bank subsidiary to M&T are limited by the amount of earnings of the subsidiary in the current year and the two preceding years.  For purposes of that test, at September 30, 2017 approximately $819 million was available for payment of dividends to M&T from bank 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 enacted the LCR rules requiring a banking company to maintain a minimum amount of liquid assets to withstand a standardized supervisory liquidity stress scenario. The Company has taken steps to maintain appropriate liquidity and is in compliance with the LCR rules.

Market risk is the risk of loss from adverse changes in the market prices and/or interest rates of the Company’s financial instruments.  The primary market risk the Company is exposed to is interest rate risk.  Interest rate risk arises from the Company’s core banking activities of lending and deposit-taking, because assets and liabilities reprice at different times and by different amounts as interest rates change.  As a result, net interest income earned by the Company is subject to the effects of changing interest rates.  The Company measures interest rate risk by calculating the variability of net interest income in future periods under various interest rate scenarios using projected balances for earning assets, interest-bearing liabilities and derivatives used to hedge interest rate risk.  Management’s philosophy toward interest rate risk management is to limit the variability of net interest income.  The

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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.  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 September 30, 2017 and December 31, 2016 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

	Calculated Increase (Decrease) in Projected Net Interest Income
Changes in interest rates	September 30, 2017				December 31, 2016
	(In thousands)
+200 basis points	$	134,336				227,283
+100 basis points		96,895				147,400
-50 basis points		—		(a)		(98,945	)
-100 basis points		(180,632	)			—		(a)

(a)The Company did not analyze this scenario.

The Company utilized many assumptions to calculate the impact that changes in interest rates may have on net interest income.  The more significant of those assumptions included the rate of prepayments of mortgage-related assets, cash flows from derivative and other financial instruments held for non-trading purposes, loan and deposit volumes and pricing, and deposit maturities.  In the scenarios presented, the Company also assumed gradual changes in interest rates during a twelve-month period as compared with the base scenario.  In the declining rate scenario, the rate changes may be limited to lesser amounts such that interest rates remain positive on all points of the yield curve.  In 2016, the Company suspended the -100 basis point scenario due to the persistent low level of interest rates.  This scenario was reinstated as of June 30, 2017.  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

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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. Given recent increases in short-term interest rates, management believes that the likelihood of potential volatility of interest rates has increased.  As a result, as previously described, in 2017 management added interest rate swap agreements designated as hedging instruments to mitigate the Company’s exposure to such potential volatility.  In light of the uncertainties and assumptions associated with the process, the amounts presented in the table are not considered significant to the Company’s past or projected net interest income.

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

The Company engages in limited 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 trading account positions associated with interest rate contracts and foreign currency and other option and futures contracts are presented in note 10 of Notes to Financial Statements.  The amounts of gross and net trading account positions, as well as the type of trading account activities conducted by the Company, are subject to a well-defined series of potential loss exposure limits established by management and approved by M&T’s Board of Directors.  However, as with any non-government guaranteed financial instrument, the Company is exposed to credit risk associated with counterparties to the Company’s trading account activities.

The notional amounts of interest rate contracts entered into for trading account purposes were $15.5 billion at September 30, 2017, $21.2 billion at September 30, 2016 and $21.6 billion at December 31, 2016.  The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes were $545 million at September 30, 2017, compared with $891 million at September 30, 2016 and $471 million at December 31, 2016.  Although the notional amounts of these contracts are not recorded in the consolidated balance sheet, the unsettled 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 recognized on the balance sheet totaled $171 million and $110 million, respectively, at September 30, 2017. Effective January 2017, certain clearinghouse exchanges revised their rules to re-characterize required collateral postings for changes in fair value of exchange-traded derivatives as legal settlements of those positions. As a result, the fair value asset and liability amounts at September 30, 2017 have been reduced by contractual settlements of $89 million and $29 million, respectively. The fair values of trading account assets and liabilities were $489 million and $293 million, respectively, at September 30, 2016 and $324 million and $174 million, respectively, at December 31, 2016.  Included in trading account assets were assets related to deferred compensation plans totaling $23 million at each of September 30, 2017 and 2016 and $22 million at December 31, 2016.  Changes in the fair values 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 were liabilities related to deferred compensation plans totaling $26 million at each of September 30, 2017, September 30, 2016 and December 31, 2016.  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.  Also included in trading account assets were investments in mutual funds and other assets that the Company was required to hold under terms of certain non-qualified supplemental retirement and other benefit plans that were assumed by the Company in various acquisitions.  Those assets totaled $25 million at September 30, 2017, $28 million at September 30, 2016 and $24 million at December 31, 2016.

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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 previously noted, the Company is exposed to credit risk associated with counterparties to transactions related to the Company’s trading account activities.  Additional information about the Company’s use of derivative financial instruments in its trading 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 was $30 million in the recent quarter, compared with $47 million in the third quarter of 2016 and $52 million in the second quarter of 2017. For the nine-month periods ended September 30, 2017 and 2016, the provision for credit losses was $137 million and $128 million, respectively. Net charge-offs of loans were $25 million in the recent quarter, compared with $41 million in the corresponding 2016 quarter and $45 million in the second quarter of 2017. Net charge-offs as an annualized percentage of average loans and leases were .11% in the recent quarter, compared with .19% in the year-earlier quarter and .20% in the second quarter of 2017. Net charge-offs for the nine-month periods ended September 30 totaled $113 million in 2017 and $108 million in 2016, representing an annualized rate of .17% and .16% of average loans and leases in those respective periods. A summary of net charge-offs by loan type is presented in the table that follows.

NET CHARGE-OFFS (RECOVERIES)

BY LOAN/LEASE TYPE

	2017
	First Quarter		Second Quarter		Third Quarter			Year- to-date
	(In thousands)
Commercial, financial, leasing, etc.	$	11,896		21,814		5,291			39,001
Real estate:
Commercial		3,971		1,419		(5,637	)		(247	)
Residential		4,752		3,169		2,178			10,099
Consumer		21,948		18,803		23,067			63,818
	$	42,567		45,205		24,899			112,671

	2016
	First Quarter			Second Quarter			Third Quarter			Year- to-date
	(In thousands)
Commercial, financial, leasing, etc.	$	902			(3,132	)		14,117			11,887
Real estate:
Commercial		(1,141	)		(1,866	)		(140	)		(3,147	)
Residential		5,085			3,115			4,835			13,035
Consumer		37,394			26,139			22,563			86,096
	$	42,240			24,256			41,375			107,871

Reflected in net charge-offs of commercial loans and leases was: an $8 million charge-off in the second quarter of 2017 associated with a provider of asset management, trading, and merger and acquisition advisory services; a $6 million charge-off in the first quarter of 2017 associated with a producer of powdered cellulose and fiber filler products used for food and industrial applications; a $12 million charge-off of loans to a commercial maintenance services provider in the third quarter of 2016 and a $7 million recovery of a previously charged-off loan in the second quarter of 2016. Included in net charge-offs of consumer loans and leases were net charge-offs during the

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quarters ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively, of: automobile loans of $9 million, $7 million and $7 million; recreational vehicle loans of $4 million, $4 million and $2 million; and home equity loans and lines of credit secured by one-to-four family residential properties of $2 million, $5 million and $3 million. Beginning in the first quarter of 2016, the Company accelerated the charge off of consumer loans associated with customers who were either deceased or had filed for bankruptcy that, in accordance with GAAP, had previously been considered when determining the level of the allowance for credit losses and were charged-off following the Company’s normal charge-off procedures to the extent the loans subsequently became delinquent.  Reflected in consumer loan charge-offs in the second quarter of 2016 was a $6 million charge-off of a personal usage loan.  For the nine-month periods ended September 30, 2017 and 2016, net consumer loan charge-offs included the following: automobile loans of $25 million and $24 million, respectively; recreational vehicle loans of $11 million and $19 million, respectively; and home equity loans and lines of credit of $8 million and $14 million, respectively.  

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.  For acquired loans where fair value was less than outstanding principal as of the acquisition date and the resulting discount was due, at least in part, to credit deterioration, 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 associated with such loans, including its estimates of lifetime principal losses. 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 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 acquired at a discount subsequent to 2008 and accounted for based on expected cash flows was $1.1 billion, $2.0 billion and $1.8 billion at September 30, 2017, September 30, 2016 and December 31, 2016, respectively.  The nonaccretable balance related to remaining principal losses associated with loans acquired at a discount as of September 30, 2017 and December 31, 2016 is presented in the accompanying table.

NONACCRETABLE BALANCE - PRINCIPAL

	Remaining balance
	September 30, 2017		December 31, 2016
	(In thousands)
Commercial, financial, leasing, etc.	$	4,606		4,794
Commercial real estate		31,524		39,867
Residential real estate		36,128		59,657
Consumer		8,484		11,275
Total	$	80,742		115,593

For acquired loans where the fair value exceeded the outstanding principal balance, the resulting premium is recognized as a reduction of interest income over the lives of the loans. Immediately following the acquisition date and thereafter, an allowance for credit losses is recorded for incurred losses inherent in the portfolio, consistent with the accounting for originated loans and leases. The carrying amount of Hudson City loans acquired at a premium was $12.1 billion and $14.2 billion at September 30, 2017 and December 31, 2016, respectively. GAAP does not allow the credit loss component of the net premium associated with those loans to be bifurcated and accounted for as a nonaccreting balance as is the case with purchased impaired loans and other loans acquired at a discount.  Rather, subsequent to the acquisition date, incurred losses associated with those loans are evaluated using methods consistent with those applied to originated loans and such losses are considered by management in evaluating the Company’s allowance for credit losses.

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Nonaccrual loans aggregated $869 million or .99% of total loans and leases outstanding at September 30, 2017, compared with $837 million or .93% a year earlier, $920 million or 1.01% at December 31, 2016 and $872 million or .98% at June 30, 2017.  The higher levels of nonaccrual loans since September 30, 2016 reflect the migration of previously performing residential real estate loans obtained in the acquisition of Hudson City that became past due over 90 days after September 30, 2016.  The lower level of nonaccrual loans at September 30, 2017 as compared with December 31, 2016 reflects the effect of borrower repayment performance and charge-offs.    

Accruing loans past due 90 days or more (excluding loans acquired at a discount) totaled $261 million or .30% of total loans and leases at September 30, 2017, compared with $317 million or .35% at September 30, 2016, $301 million or .33% at December 31, 2016 and $265 million or .30% at June 30, 2017. Those amounts included loans guaranteed by government-related entities of $252 million, $282 million, $283 million and $235 million at September 30, 2017, September 30, 2016, December 31, 2016 and June 30, 2017, respectively. 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 $207 million at September 30, 2017, $225 million at September 30, 2016, $224 million at December 31, 2016 and $185 million at June 30, 2017. 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.

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 contractually required principal and 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 $467 million at September 30, 2017, or .5% of total loans. Of that amount, $411 million was related to the Hudson City acquisition. Purchased impaired loans totaled $617 million and $578 million at September 30 and December 31, 2016, respectively.

Accruing loans acquired at a discount 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 $56 million at September 30, 2017, compared with $65 million at September 30, 2016 and $61 million at December 31, 2016.

The Company modified the terms of select loans in an effort to assist borrowers.  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 $184 million, $170 million and $171 million at September 30, 2017, September 30, 2016 and December 31, 2016, respectively.

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Nonaccrual commercial loans and leases were $204 million at September 30, 2017, $231 million at September 30, 2016, $261 million at December 31, 2016 and $201 million at June 30, 2017. Commercial real estate loans classified as nonaccrual aggregated $222 million at September 30, 2017, $198 million at September 30, 2016, $211 million at December 31, 2016 and $225 million at June 30, 2017.  Nonaccrual commercial real estate loans included construction-related loans of $22 million, $41 million, $35 million and $23 million at September 30, 2017, September 30, 2016, December 31, 2016 and June 30, 2017, respectively.  Those nonaccrual construction loans included loans to residential builders and developers of $2 million, $20 million, $17 million and $7 million at September 30, 2017, September 30, 2016, December 31, 2016 and June 30, 2017, respectively. 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 September 30, 2017 is presented in the accompanying table.

RESIDENTIAL BUILDER AND DEVELOPER LOANS, NET OF UNEARNED DISCOUNT

								Quarter Ended
	September 30, 2017							September 30, 2017
			Nonaccrual					Net Charge-offs (Recoveries)
	Outstanding Balances(b)		Balances		Percent of Outstanding Balances			Balances			Annualized Percent of Average Outstanding Balances
	(Dollars in thousands)
New York	$	430,628	$	382		.09	%	$	(33	)		(.03	)	%
Pennsylvania		100,932		263		.26			(3,608	)		(13.13	)
Mid-Atlantic (a)		469,064		1,691		.36			(249	)		(.21	)
Other		663,269		1,187		.18			(13	)		(.01	)
Total	$	1,663,893	$	3,523		.21	%	$	(3,903	)		(.93	)	%

(a) Includes Delaware, Maryland, New Jersey, Virginia, West Virginia and the District of Columbia.

(b) Includes approximately $16 million of loans not secured by real estate, of which approximately $1 million are in nonaccrual status.

Residential real estate loans in nonaccrual status aggregated $338 million at September 30, 2017, compared with $303 million at September 30, 2016, $336 million at December 31, 2016 and $343 million at June 30, 2017.  The increase in residential real estate loans classified as nonaccrual subsequent to September 30, 2016 reflects the migration of previously performing loans obtained in the acquisition of Hudson City that became more than 90 days delinquent.  Such nonaccrual residential real estate loans totaled $211 million at each of September 30 and June 30, 2017, $149 million at September 30, 2016 and $190 million at December 31, 2016. Those loans could not be identified as purchased impaired loans at the acquisition date because the borrowers were making loan payments at that time and the loans were not recorded at a discount. Included in residential real estate loans classified as nonaccrual were limited documentation first mortgage loans of $102 million, $89 million, $107 million and $106 million at September 30, 2017, September 30, 2016, December 31, 2016 and June 30, 2017, respectively.  Limited documentation first mortgage 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. Such loans in the Company’s portfolio prior to the Hudson City transaction were originated by the Company before 2008. Hudson City discontinued its limited documentation loan program in January 2014. Residential real estate loans past due 90 days or more and accruing interest (excluding loans acquired at a discount) aggregated $250 million at September 30, 2017, compared with $281 million at each of September 30, 2016 and December 31, 2016 and $233 million at June 30, 2017.  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 September 30, 2017 is presented in the accompanying table.

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SELECTED RESIDENTIAL REAL ESTATE-RELATED LOAN DATA

	September 30, 2017							Quarter Ended September 30, 2017
			Nonaccrual					Net Charge-offs (Recoveries)
											Annualized Percent of
					Percent of						Average
	Outstanding				Outstanding						Outstanding
	Balances		Balances		Balances			Balances			Balances
	(Dollars in thousands)
Residential mortgages:
New York	$	5,749,347	$	77,500		1.35	%	$	1,023			.07	%
Pennsylvania		1,449,304		15,090		1.04			50			.01
Maryland		1,149,341		13,122		1.14			(412	)		(.14	)
New Jersey		4,472,114		58,123		1.30			1,014			.09
Other Mid-Atlantic (a)		1,004,391		10,438		1.04			(11	)		(.01	)
Other		3,283,823		61,418		1.87			573			.07
Total	$	17,108,320	$	235,691		1.38	%	$	2,237			.05	%
Residential construction loans:
New York	$	5,032	$	—		—	%	$	—			—	%
Pennsylvania		1,936		343		17.74			(66	)		(16.23	)
Maryland		1,376		—		—			—			—
New Jersey		1,984		—		—			—			—
Other Mid-Atlantic (a)		3,742		—		—			—			—
Other		8,232		329		3.99			(17	)		(.90	)
Total	$	22,302	$	672		3.01	%	$	(83	)		(1.55	%)
Limited documentation first mortgages:
New York	$	1,351,590	$	40,086		2.97	%	$	39			.01	%
Pennsylvania		65,542		5,333		8.14			(112	)		(.66	)
Maryland		38,316		2,605		6.80			20			.21
New Jersey		1,207,609		25,694		2.13			158			.05
Other Mid-Atlantic (a)		31,445		2,210		7.03			84			1.00
Other		440,038		25,990		5.91			(165	)		(.14	)
Total	$	3,134,540	$	101,918		3.25	%	$	24			—	%
First lien home equity loans and lines of credit:
New York	$	1,293,963	$	15,927		1.23	%	$	699			.22	%
Pennsylvania		809,772		8,772		1.08			92			.05
Maryland		668,522		6,544		.98			468			.28
New Jersey		60,068		351		.58			43			.31
Other Mid-Atlantic (a)		207,006		1,701		.82			11			.02
Other		28,365		915		3.22			53			.82
Total	$	3,067,696	$	34,210		1.12	%	$	1,366			.18	%
Junior lien home equity loans and lines of credit:
New York	$	835,542	$	20,598		2.47	%	$	634			.30	%
Pennsylvania		326,133		3,844		1.18			(75	)		(.09	)
Maryland		719,782		11,402		1.58			287			.16
New Jersey		117,989		1,196		1.01			142			.47
Other Mid-Atlantic (a)		280,435		2,089		.74			204			.28
Other		41,420		1,761		4.25			(200	)		(1.92	)
Total	$	2,321,301	$	40,890		1.76	%	$	992			.17	%
Limited documentation junior lien:
New York	$	753	$	—		—	%	$	(1	)		(.48	%)
Pennsylvania		324		—		—			—			—
Maryland		1,373		91		6.64			—			—
New Jersey		382		—		—			—			—
Other Mid-Atlantic (a)		643		—		—			—			—
Other		4,190		393		9.38			19			1.77
Total	$	7,665	$	484		6.31	%	$	18			.92	%

(a) Includes Delaware, Virginia, West Virginia and the District of Columbia.

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Nonaccrual consumer loans were $105 million at September 30, 2017, compared with $104 million at September 30, 2016, $112 million at December 31, 2016 and $103 million at June 30, 2017.  Included in nonaccrual consumer loans at September 30, 2017, September 30, 2016, December 31, 2016 and June 30, 2017 were: automobile loans of $21 million, $14 million, $19 million and $17 million, respectively; recreational vehicle loans of $5 million, $6 million, $7 million and $5 million, respectively; and outstanding balances of home equity loans and lines of credit of $76 million, $80 million, $82 million and $77 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 September 30, 2017 is presented in the accompanying table.

Information about past due and nonaccrual loans as of September 30, 2017 and December 31, 2016 is also included in note 4 of Notes to Financial Statements.

Real estate and other foreclosed assets totaled $111 million at September 30, 2017, compared with $160 million at September 30, 2016, $139 million at December 31, 2016 and $104 million at June 30, 2017.  Net gains or losses resulting from sales of real estate and other foreclosed assets were not material in the three-month periods ended September 30, 2017, September 30, 2016 or June 30, 2017.  At September 30, 2017, the Company’s holding of residential real estate-related properties comprised approximately 96% of foreclosed assets.

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

NONPERFORMING ASSET AND PAST DUE, RENOGIATED AND IMPAIRED LOAN DATA

	2017 Quarters									2016 Quarters
	Third			Second			First			Fourth			Third
	(Dollars in thousands)
Nonaccrual loans	$	869,362			872,374			926,675			920,015			837,362
Real estate and other foreclosed assets		110,515			104,424			119,155			139,206			159,881
Total nonperforming assets	$	979,877			976,798			1,045,830			1,059,221			997,243
Accruing loans past due 90 days or more(a)	$	261,288			265,461			280,019			300,659			317,282
Government guaranteed loans included in totals above:
Nonaccrual loans	$	34,687			39,296			39,610			40,610			47,130
Accruing loans past due 90 days or more		252,072			235,227			252,552			282,659			282,077
Renegotiated loans	$	226,672			221,892			191,343			190,374			217,559
Acquired accruing loans past due 90 days or more(b)	$	56,225			57,498			63,732			61,144			65,182
Purchased impaired loans(c):
Outstanding customer balance	$	779,340			838,476			890,431			927,446			981,105
Carrying amount		466,943			512,393			552,935			578,032			616,991
Nonaccrual loans to total loans and leases, net of unearned    discount		.99	%		.98	%		1.04	%		1.01	%		.93	%
Nonperforming assets to total net loans and leases and real estate    and other foreclosed assets		1.11	%		1.10	%		1.17	%		1.16	%		1.11	%
Accruing loans past due 90 days or more (a) to total loans and    leases, net of unearned discount		.30	%		.30	%		.31	%		.33	%		.35	%

(a)     Excludes loans acquired at a discount.  Predominantly residential real estate loans.

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

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

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Management determined the allowance for credit losses by performing ongoing evaluations of the loan and lease portfolio, including such factors as the differing economic risks associated with each loan category, the financial condition of specific borrowers, the economic environment in which borrowers operate, the level of delinquent loans, the value of any collateral and, where applicable, the existence of any guarantees or indemnifications.  Management evaluated the impact of changes in interest rates and overall economic conditions on the ability of borrowers to meet repayment obligations when quantifying the Company’s exposure to credit losses and the allowance for such losses as of each reporting date.  Factors also considered by management when performing its assessment, in addition to general economic conditions and the other factors described above, included, but were not limited to: (i) the impact of residential real estate values on the Company’s portfolio of loans to residential real estate builders and developers and other loans secured by residential real estate; (ii) the concentrations of commercial real estate loans in the Company’s loan portfolio; (iii) the amount of commercial and industrial loans to businesses in areas of New York State outside of the New York City metropolitan area and in central Pennsylvania that have historically experienced less economic growth and vitality than the vast majority of other regions of the country; (iv) the expected repayment performance associated with the Company’s first and second lien loans secured by residential real estate, including loans obtained in the acquisition of Hudson City that were not classified as purchased impaired; 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 September 30, 2017 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) slower growth in private sector employment in upstate New York and central Pennsylvania than in other regions served by the Company and nationally; (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 volatile nature of global markets, including the impact international economic conditions could have on the U.S. economy; Federal Reserve positioning of monetary policy; and continued stagnant population growth in the upstate New York and central Pennsylvania regions (approximately 55% of the Company’s loans and leases 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 $2.4 billion at each of September 30, 2017 and December 31, 2016, compared with $2.5 billion at September 30, 2016 and $2.3 billion at June 30, 2017.  Approximately 97% of loan balances added to the criticized category during the recent quarter were less than 90 days past due and 86% had a current payment status.  Given payment performance, amount of supporting collateral, and, in certain instances, the existence of loan guarantees, the Company still expects to collect the full outstanding principal balance on most of those loans.

Loan officers in different geographic locations with the support of the Company’s credit department personnel 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 regions. At least annually, updated financial information is obtained from commercial borrowers associated with pass grade loans and additional analysis is performed.  On a quarterly basis, the Company’s centralized credit 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

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should be reported as accruing or nonaccruing.  For criticized nonaccrual loans, additional meetings are held with loan officers and their managers, workout specialists and senior management to discuss each of the relationships. In analyzing criticized loans, borrower-specific information is reviewed, including operating results, future cash flows, recent developments and the borrower’s outlook, and other pertinent data. The timing and extent of potential losses, considering collateral valuation and other factors, and the Company’s potential courses of action are reviewed. To the extent that these loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of classifying the loan as “criticized,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in value as determined by line of business and/or loan workout personnel in the respective geographic regions. Those adjustments are reviewed and assessed for reasonableness by the Company’s credit 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 securing the Company’s residential real estate loans is 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. Loans to consumers that file for bankruptcy are generally charged off to estimated net collateral value shortly after the Company is notified of such filings. At September 30, 2017, approximately 57% 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 69% (or approximately 30% 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 September 30, 2017, the balance of junior lien loans and lines that were in nonaccrual status solely as a result of first lien loan performance was $10 million, compared with $14 million at September 30, 2016, $12 million at December 31, 2016 and $11 million at June 30, 2017.  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. When evaluating individual home equity loans and lines of credit for charge-off and for purposes of estimating incurred losses in determining the allowance for credit losses, the Company gives consideration to the required repayment of any first lien positions related to collateral property.  Home equity line of credit terms vary but such lines are generally originated with an open draw period of ten years followed by an amortization period of up to twenty years. At September 30, 2017, approximately 83% 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 20% were making contractually allowed payments that do not include any repayment of principal.

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

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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 43% 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 at a discount 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. For loans acquired at a discount, the impact of estimated future credit losses represents the predominant difference between contractually required payments and the cash flows expected to be collected. Subsequent decreases to those expected cash flows require the Company to evaluate the need for an additional allowance for credit losses and could lead to charge-offs of acquired loan balances. Additional information regarding the Company’s process for determining the allowance for credit losses is included in note 4 of Notes to Financial Statements.

Management believes that the allowance for credit losses at September 30, 2017 appropriately reflected credit losses inherent in the portfolio as of that date.  The allowance for credit losses was $1.01 billion, or 1.15% of total loans and leases at September 30, 2017, compared with $976 million or 1.09% at September 30, 2016, $989 million or 1.09% at December 31, 2016 and $1.01 billion or 1.13% at June 30, 2017.  The ratio of the allowance to total loans and leases at each respective date reflects the impact of loans obtained in acquisition transactions subsequent to 2008 that have been recorded at estimated fair value. As noted earlier, GAAP prohibits any carry-over of an allowance for credit losses for acquired loans recorded at fair value.  However, for loans acquired at a premium, GAAP provides that an allowance for credit losses be recognized for incurred losses inherent in the portfolio.  The level of the allowance reflects management’s evaluation of the loan and lease portfolio using the methodology and considering the factors as described herein.  Should the various credit factors considered by management in establishing the allowance for credit losses change and should management’s assessment of losses inherent in the loan portfolio also change, the level of the allowance as a percentage of loans could increase or decrease in future periods.  The ratio of the allowance for credit losses to nonaccrual loans was 117% at each of September 30, 2017 and 2016, compared with 107% at December 31, 2016 and 116% at June 30, 2017.  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

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for credit losses, nor does management rely upon that ratio in assessing the adequacy of the Company’s allowance for credit losses. 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 $459 million in the third quarter of 2017, compared with $491 million in the corresponding 2016 period and $461 million in the second quarter of 2017.  The higher other income in last year’s third quarter resulted predominantly from $28 million of gains on bank investment securities.  As compared with the second quarter of 2017, higher mortgage banking revenues in the recent quarter were largely offset by lower credit-related fees.

Mortgage banking revenues were $97 million in the recent quarter, compared with $104 million in the third quarter of 2016 and $86 million in the second quarter of 2017.  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 $63 million in the third quarter of 2017, compared with $67 million in the year-earlier quarter and $61 million in 2017’s second quarter.  The decline in residential mortgage banking revenues in the recent quarter as compared with the corresponding 2016 quarter was the result of lower gains from origination activities, reflecting a 9% decline in origination volumes.  The improvement from 2017’s second quarter was due to higher servicing fees.

New commitments to originate residential real estate loans to be sold were approximately $757 million in the recently completed quarter, compared with $836 million in the third quarter of 2016 and $773 million in the second quarter of 2017. Realized gains from sales of residential real estate loans and loan servicing rights and recognized net unrealized gains or losses attributable to residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans totaled to gains of $17million in each of the second and third quarters of 2017, compared with gains of $21 million in the third quarter of 2016.

Loans held for sale that were secured by residential real estate were $347 million at September 30, 2017, $415 million at September 30, 2016 and $414 million at December 31, 2016.  Commitments to sell residential real estate loans and commitments to originate residential real estate loans for sale at pre-determined rates aggregated $658 million and $483 million, respectively, at September 30, 2017, $845 million and $636 million, respectively, at September 30, 2016, and $777 million and $479 million, respectively, at December 31, 2016.  Net recognized unrealized gains on residential real estate loans held for sale, commitments to sell loans, and commitments to originate loans for sale were $15 million at each of September 30, 2017 and December 31, 2016, and $22 million at September 30, 2016.  Changes in such net unrealized gains are recorded in mortgage banking revenues and resulted in net decreases in revenues of $2 million in the recent quarter, compared with net increases of $3 million in the third quarter of 2016 and $4 million in the second quarter of 2017.

Revenues from servicing residential real estate loans for others were $46 million in each of the third quarters of 2017 and 2016, compared with $44 million during the quarter ended June 30, 2017.  Residential real estate loans serviced for others aggregated $81.9 billion at September 30, 2017, $55.0 billion at September 30, 2016, $53.2 billion at December 31, 2016 and $72.6 billion at June 30, 2017.  Reflected in residential real estate loans serviced for others were loans sub-serviced for others of $59.3 billion at September 30, 2017, $32.1 billion at September 30, 2016, $30.4 billion at December 31, 2016 and $49.9 billion at June 30, 2017.  Revenues earned for sub-servicing loans aggregated $26 million for the three-month period ended September 30, 2017, compared with $25 million for

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each of the three-month periods ended June 30, 2017 and September 30, 2016. During 2017, the Company acquired additional sub-servicing of residential real estate loans as follows: in March, approximately $12.4 billion of outstanding principal balances were added; in June, outstanding principal balances of approximately $11.2 billion were added; and during September, approximately $12.0 billion of outstanding principal balances were added.The contractual servicing rights associated with loans sub-serviced by the Company were predominantly held by affiliates of Bayview Lending Group LLC (“BLG”). Information about the Company’s relationship with BLG and its affiliates is included in note 15 of Notes to Financial Statements.

Capitalized servicing rights consist largely of servicing associated with loans sold by the Company.  Capitalized residential mortgage loan servicing assets totaled $116 million at September 30, 2017, compared with $117 million at each of September 30, 2016 and December 31, 2016.

Commercial mortgage banking revenues totaled $34 million in the third quarter of 2017, compared with $37 million in the corresponding 2016 period and $25 million in the second quarter of 2017.  Included in such amounts were revenues from loan origination and sales activities of $21 million in the recently completed quarter, compared with $25 million and $11 million in the third quarter of 2016 and the second quarter of 2017, respectively. Commercial real estate loans originated for sale to other investors aggregated approximately $839 million in the third quarter of 2017, compared with $721 million in the year-earlier quarter and $510 million in the second quarter of 2017. Loan servicing revenues were $13 million in the recent quarter, compared with $11 million in the third quarter of 2016 and $14 million in the second 2017 quarter.  Capitalized commercial mortgage servicing assets totaled $111 million and $92 million at September 30, 2017 and 2016, respectively, and $104 million at December 31, 2016.  Commercial real estate loans serviced for other investors totaled $15.7 billion, $11.3 billion, and $11.8 billion at September 30, 2017, September 30, 2016 and December 31, 2016, respectively, and included $3.2 billion, $2.7 billion and $2.8 billion, respectively, of loan balances for which investors had recourse to the Company if such balances are ultimately uncollectible.  In January 2017, the Company purchased commercial mortgage servicing rights and other assets associated with approximately $2.7 billion of loans.  The purchase price and assets acquired were not material to the Company’s consolidated financial position.  Commitments to sell commercial real estate loans and commitments to originate commercial real estate loans for sale were $394 million and $171 million, respectively, at September 30, 2017, $694 million and $403 million, respectively, at September 30, 2016 and $713 million and $70 million, respectively, at December 31, 2016.  Commercial real estate loans held for sale at September 30, 2017, September 30, 2016 and December 31, 2016 were $224 million, $290 million and $643 million, respectively. The higher balance at December 31, 2016 reflected loans originated late in 2016 that were not delivered to investors until 2017.

Service charges on deposit accounts were $109 million in the third quarter of 2017, compared with $108 million in the similar 2016 quarter and $106 million in the second quarter of 2017.  Brokerage services income, which includes revenues from the sale of mutual funds and annuities and securities brokerage fees, aggregated $15 million during the recently completed quarter, compared with $16 million in the third quarter of 2016 and $17 million in the second 2017 quarter.  Trading account and foreign exchange activity resulted in gains of $7 million in the third quarter of 2017, compared with gains of $13 million and $8 million in the third quarter of 2016 and the second quarter of 2017, respectively.  The decline in such gains in the two most recent quarters as compared with the third quarter of 2016 reflects reduced activity related to interest rate swap transactions executed on behalf of commercial customers.  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.”

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

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management services are offered, including asset management, fiduciary services and family office services.  Trust income totaled $125 million in the third quarter of 2017, compared with $119 million in the third quarter of 2016 and $127 million in second quarter of 2017.  Revenues associated with the ICS business were approximately $64 million, $58 million and $63 million during the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively. The higher revenues in the two most recent quarters as compared with the third quarter of 2016 reflect increased fees earned from money-market funds and stronger sales activities. Revenues attributable to WAS were approximately $56 million, $52 million and $60 million for the three-month periods ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively.  The increase in the recent quarter as compared with the similar 2016 period largely reflects the impact of improved equity market performance and stronger sales activities.  The second quarter of 2017 included $4 million of annual tax preparation fees.Total trust assets, which include assets under management and assets under administration, totaled $230.5billion at September 30, 2017, compared with $208.4 billion at September 30, 2016 and $210.6 billion at December 31, 2016.  Trust assets under management were $76.9 billion, $70.8 billion and $70.7 billion at September 30, 2017, September 30, 2016 and December 31, 2016, respectively.  Trust assets under management include the Company’s proprietary mutual funds’ assets of $10.7billion, $11.5 billion and $10.9 billion at September 30, 2017, September 30, 2016 and December 31, 2016, respectively.  Additional trust income from investment management activities aggregated $5 million in the recent quarter, $8 million in the third quarter of 2016 and $4 million in the second quarter of 2017. That income largely relates to fees earned from retail customer investment accounts and from an affiliated investment manager. Assets managed by that affiliated manager totaled $6.6 billion at September 30, 2017, $7.0 billion at September 30, 2016 and $7.3 billion at December 31, 2016.  The Company’s trust income from that affiliate was not material during any of the quarters then-ended.

The Company realized gains from sales of investment securities of $28 million during the third quarter of 2016, when the Company sold substantially all of its collateralized debt obligations that had been held in the available-for-sale investment securities portfolio and that had been obtained through the acquisition of other banks.  In total, securities with an amortized cost of $28 million were sold.  Divestiture of the majority of those securities would have been required prior to July 21, 2017 in accordance with the provisions of the Volcker Rule.  There were no significant gains or losses on investment securities in the second or third quarters of 2017.

Other revenues from operations were $107 million in the third quarter of 2017, compared with $104 million in the year-earlier quarter and $117 million in the second quarter of 2017.  The higher other revenues from operations in the second quarter of 2017 reflects a greater amount of letter of credit and other credit-related fees in that quarter.  Included in other revenues from operations were the following significant components.  Letter of credit and other credit-related fees aggregated $25 million in the recent quarter, compared with $31 million and $35 million in the third quarter of 2016 and the second 2017 quarter, respectively.  The lower revenues in the recent quarter as compared with those prior periods predominantly resulted from declines in fees for providing loan syndication services.  Tax-exempt income from bank owned life insurance, which includes increases in the cash surrender value of life insurance policies and benefits received, aggregated $16 million in the most recent quarter, compared with $12 million and $14 million in the third quarter of 2016 and second quarter of 2017, respectively.  Revenues from merchant discount and credit card fees were $31 million in the quarter ended September 30, 2017, compared with $28 million and $29 million during the quarters ended September 30, 2016 and June 30, 2017, respectively.  Insurance-related sales commissions and other revenues were $10 million in the third quarter of 2017, compared with $11 million in each of the year-earlier quarter and the second quarter of 2017.  M&T’s share of the operating losses of BLG recognized using the equity method of accounting and cash distributions received resulted in losses of $2 million in the third quarter of 2016 and income of $1 million in the second quarter of 2017.  There was no income or loss attributable to M&T’s investment in BLG in the recent quarter.  During the second quarter of 2017, the operating losses of BLG resulted in M&T reducing the carrying value of its investment in BLG to zero.  During that quarter, M&T received a cash distribution from BLG that resulted in the recognition of income by M&T. M&T expects cash distributions from BLG in the future, but the timing and amount of those distributions cannot be estimated at this time.  BLG is entitled to receive distributions from affiliates that provide asset management and

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other services that are available for distribution to BLG’s owners, including M&T.  Information about the Company’s relationship with BLG and its affiliates is included in note 15 of Notes to Financial Statements.

Other income aggregated $1.37 billion during the first nine months of 2017, $7 million higher than $1.36 billion in the first nine months of 2016.  That increase was largely attributable to higher trust income, merchant discount and credit card fees, and credit-related fees, and lower losses related to M&T’s share of the operating losses of BLG.  Partially offsetting those improvements were lower mortgage banking revenues and trading account and foreign exchange gains in the 2017 period and gains on investment securities recognized during the 2016 period.

Mortgage banking revenues totaled $268 million and $275 million during the nine-month periods ended September 30, 2017 and 2016, respectively.  Residential mortgage banking revenues aggregated $183 million in the first nine months of 2017, compared with $192 million during the nine-month period ended September 30, 2016.  New commitments to originate residential real estate loans to be sold aggregated $2.3 billion and $2.4 billion during the first nine months of 2017 and 2016, respectively.  Realized gains from sales of residential real estate loans and loan servicing rights and recognized unrealized gains and losses on residential real estate loans held for sale, commitments to originate loans for sale and commitments to sell loans aggregated to gains of $47 million and $54 million in the nine-month periods ended September 30, 2017 and 2016, respectively.  Revenues from servicing residential mortgage loans for others through September 30 were $136 million in 2017 and $137 million in 2016.  Included in servicing revenues were sub-servicing revenues aggregating $74 million and $73 million in the first nine months of 2017 and 2016, respectively.  Commercial mortgage banking revenues were $85 million and $83 million in the nine months ended September 30, 2017 and 2016, respectively.  Commercial real estate loans originated for sale to other investors totaled $1.7 billion and $1.6 billion in the nine-month periods ended September 30, 2017 and 2016, respectively.

Service charges on deposit accounts aggregated $320 million during the first nine months of 2017, compared with $314 million in the year-earlier period.  Trust income totaled $372 million and $350 million during the first nine months of 2017 and 2016, respectively.  The increase in trust income in 2017 as compared with 2016 was largely due to higher revenues from the ICS business, reflecting increased fees earned from money-market funds and stronger sales activities, and from the WAS business, resulting from improved equity market performance and stronger sales activities.  Brokerage services income was $49 million and $48 million in the nine-month periods ended September 30, 2017 and 2016, respectively.  Trading account and foreign exchange activity resulted in gains of $25 million and $33 million for the first nine months of 2017 and 2016, respectively.  The decline resulted predominantly from reduced activity associated with interest rate swap agreements executed on behalf of commercial customers.  Gains on investment securities were not significant in 2017 and were $29 million in the nine-month period ended September 30, 2016.

Other revenues from operations totaled $335 million in the first nine months of 2017, compared with $311 million in the similar 2016 period.  Other revenues from operations include the following significant components.  Letter of credit and other credit-related fees aggregated $94 million and $89 million in 2017 and 2016, respectively.  The higher revenues in the 2017 period were largely attributable to fees for providing loan syndication services.  Income from bank owned life insurance totaled $44 million in 2017 and $41 million in 2016.  Merchant discount and credit card fees were $88 million and $81 million in the first nine months of 2017 and 2016, respectively.  The higher revenues in the 2017 period were largely attributable to increased transaction volumes related to merchant activity and usage of the Company’s credit card products.  Insurance-related commissions and other revenues aggregated $33 million and $32 million in 2017 and 2016, respectively. M&T’s investment in BLG resulted in losses of $1 million in 2017 and $8 million in 2016.

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Other Expense

Other expense aggregated $806 million in the third quarter of 2017, compared with $752 million in the year-earlier quarter and $751 million in the 2017’s second quarter. Included in those amounts are expenses considered to be “nonoperating” in nature consisting of amortization of core deposit and other intangible assets of $8 million in the two most recent quarters and $10 million in the third quarter of 2016. Exclusive of those nonoperating expenses, noninterest operating expenses were $798 million in the third quarter of 2017, compared with $743 million in each of the third quarter of 2016 and the second quarter of 2017.  The most significant factors for the increased level of operating expenses in the recent quarter as compared with the earlier quarters were increased legal-related and professional services costs.  As of September 30, 2017, the Company increased its reserve for legal matters by $50 million.  Table 2 provides a reconciliation of other expense to noninterest operating expense.

Other expense for the first nine months of 2017 aggregated $2.34 billion, $66 million higher than $2.28 billion in the first nine months of 2016. Included in those amounts are expenses considered to be “nonoperating” in nature consisting of amortization of core deposit and other intangible assets of $24 million and $34 million in the nine-month periods ended September 30, 2017 and 2016, respectively, and merger-related expenses of $36 million in the first nine months of 2016. Exclusive of those nonoperating expenses, noninterest operating expenses for the nine months of 2017 increased 5% to $2.32 billion from $2.21 billion from the corresponding 2016 period.  That $111 million increase was largely due to higher legal-related and professional service costs and increased expenses for salaries, including incentive compensation.

Salaries and employee benefits expense totaled $399 million in each of the recent quarter and the second quarter of 2017, compared with $400 million in the third quarter 2016.  During the first nine months of 2017 and 2016, salaries and employee benefits expense totaled $1.25 billion and $1.23 billion, respectively.  The higher level of expenses in the first nine months of 2017 as compared with the similar 2016 period was largely attributable to the impact of annual merit increases and higher incentive compensation costs.  Salaries and employee benefits expense included stock-based compensation of $10 million in each of the three-month periods ended September 30, 2017, September 30, 2016 and June 30, 2017, and $52 million and $55 million during the nine-month periods ended September 30, 2017 and 2016, respectively.  The number of full-time equivalent employees was 16,478 at September 30, 2017, 16,709 at September 30, 2016, 16,593 at December 31, 2016 and 16,526 at June 30, 2017, respectively.

Excluding the nonoperating expense items described earlier from each quarter, nonpersonnel operating expenses were $399 million and $343 million in the quarters ended September 30, 2017 and September 30, 2016, respectively, and $344 million in the second quarter of 2017.  On that same basis, such expenses were $1.07 billion and $984 million in the nine-month periods ended September 30, 2017 and 2016, respectively.  The increases in nonpersonnel operating expenses reflected in the third 2017 quarter as compared with the year-earlier quarter and the second quarter of 2017, and in the first nine months of 2017 as compared with the first nine months of 2016, were predominantly the result of higher legal-related and professional services costs, including the $50 million increase in the Company’s reserve for legal matters as of September 30, 2017.

The efficiency ratio measures the relationship of noninterest operating expenses to revenues.  The Company’s efficiency ratio was 56.0% during the recent quarter, compared with 55.9% during the third quarter of 2016 and 52.7% in the second quarter of 2017.  The efficiency ratios for the nine-month periods ended September 30, 2017 and 2016 were 55.2% and 56.0%, respectively.  The calculation of the efficiency ratio is presented in Table 2.

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Income Taxes

The provision for income taxes for the third quarter of 2017 was $225 million, compared with $200 million and $215 million in the year-earlier quarter and the second quarter of 2017, respectively. For the nine-month periods ended September 30, 2017 and 2016, the provision for income taxes was $609 million and $564 million, respectively.  As noted earlier, M&T adopted new accounting guidance for share-based transactions during the first quarter of 2017. That guidance requires that all excess tax benefits and tax deficiencies associated with share-based compensation be recognized as a component of income tax expense in the income statement. Previously, tax effects resulting from changes to M&T’s share price subsequent to the grant date were recorded through shareholders’ equity at the time of vesting or exercise. The adoption of the amended accounting guidance resulted in an $18 million reduction of income tax expense in the initial 2017 quarter.  The impact of the amended guidance on the second and third quarters of 2017 was not significant.  As discussed earlier, the October 2017 settlement between Wilmington Trust Corporation and the U.S. Attorney’s Office for the District of Delaware resulted in a $44 million payment by Wilmington Trust Corporation that is not deductible for income tax purposes, resulting in a higher effective tax rate in the recent quarter.  The effective tax rates were 38.7%, 36.4% and 36.1% for the quarters ended September 30, 2017, September 30, 2016 and June 30, 2017, respectively, and 35.9% and 36.4% for the nine-month periods ended September 30, 2017 and 2016, respectively. Excluding the impact on income tax expense of the Wilmington Trust Corporation matter, the effective tax rate would have been 35.8% in the third quarter of 2017. 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 also 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 $16.3 billion at each of September 30, 2017 and 2016, representing 13.55% and 12.88% of total assets, respectively, compared with $16.5 billion or 13.35% at December 31, 2016.

Included in shareholders’ equity was preferred stock with financial statement carrying values of $1.2 billion at each of September 30, 2017, September 30, 2016 and December 31, 2016. Further information concerning M&T’s preferred stock can be found in note 6 of Notes to Financial Statements.  

Reflecting the impact of repurchases of M&T’s common stock, common shareholders’ equity was $15.1 billion at each of September 30, 2017 and 2016, or $99.70 per share and $97.47 per share, respectively, compared with $15.3 billion, or $97.64 at December 31, 2016.  Tangible equity per common share, which excludes goodwill and core deposit and other intangible assets and applicable deferred tax balances, was $69.02 at the end of the recent quarter, compared with $67.42 a year earlier and $67.85 at December 31, 2016.  The Company’s ratio of tangible common equity to tangible assets was 9.02% at September 30, 2017, compared with 8.55% a year earlier and 8.92% at December 31, 2016.  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 reflected in shareholders’ equity, net of applicable tax effect, were $18 million, or $.12 per common share, at September 30, 2017 and $175 million, or $1.13 per common share, at September 30, 2016, compared with net unrealized losses of $16 million, or $.10 per common share, at December

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31, 2016.  Changes in unrealized gains and losses on investment securities are predominantly reflective of the impact of changes in interest rates on the values of such securities.  

Reflected in the carrying amount of available for sale investment securities at September 30, 2017 were pre-tax effect unrealized losses of $86 million on securities with an amortized cost of $6.3 billion and pre-tax effect unrealized gains of $133 million on securities with an amortized cost of $5.1 billion.  Information about unrealized gains and losses as of September 30, 2017 and December 31, 2016 is included in note 3 of Notes to Financial Statements.  Information concerning the Company’s fair valuations of investment securities is provided in note 12 of Notes to Financial Statements.

As of September 30, 2017, based on a review of each of the securities in the investment securities portfolio, the Company concluded that the declines in the values of any securities containing an unrealized loss were temporary and that any other-than-temporary impairment charges were not appropriate.  As of September 30, 2017, the Company did not intend to sell nor is it anticipated that it would be required to sell any of its 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.

The Company assessed 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 September 30, 2017 and December 31, 2016, the Company had in its held-to-maturity portfolio privately issued mortgage-backed securities with an amortized cost basis of $141 million and $158 million, respectively, and a fair value of $112 million and $121 million, respectively.  At September 30, 2017, 85% of the mortgage-backed securities were in the most senior tranche of the securitization structure with 22% 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 17% at September 30, 2017, 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. The weighted-average default percentage and loss severity assumptions utilized in the Company’s internal modeling were 33% and 64% respectively. Given the terms of the securitization structure, the bonds held by the Company may defer interest payments in certain circumstances, but after considering the repayment structure and estimated future collateral cash flows of each individual senior and subordinate tranche bond, the Company has concluded that as of September 30, 2017, those privately issued mortgage-backed securities were not other-than-temporarily impaired.  Nevertheless, it is possible that adverse changes in the estimated future performance of mortgage loan collateral underlying such securities could impact the Company’s conclusions.

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 $260 million, or $1.72 per common share, at September 30, 2017, $285 million, or $1.84 per common share, at September 30, 2016 and $273 million, or $1.75 per common share, at December 31, 2016.

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Consistent with its revised 2016 Capital Plan filed with the Federal Reserve, M&T repurchased 3,233,196 common shares for $532 million during the first quarter of 2017 and 1,409,807 common shares for $225 million in the second quarter of 2017.  On June 28, 2017, M&T announced that the Federal Reserve did not object to M&T’s 2017 Capital Plan. That plan includes the repurchase of up to $900 million of common shares during the four-quarter period beginning on July 1, 2017 and an increase in the quarterly common stock cash dividend in the second quarter of 2018 of up to $.05 per share to $.80 per share.  M&T may also 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, 2016, consistent with the contractual terms of those instruments.  Dividends are subject to declaration by M&T’s Board of Directors.  Furthermore, on July 18, 2017, M&T’s Board of Directors authorized a new stock repurchase program to repurchase up to $900 million of shares of its common stock subject to all applicable regulatory reporting limitations, including those set forth in M&T’s 2017 Capital Plan.  During the recent quarter, M&T repurchased 1,382,746 common shares for $225 million in accordance with that program.  In total, M&T repurchased 6,025,749 common shares during the first nine months of 2017 for an aggregate amount of $982 million. M&T repurchased 5,307,595 shares of common stock during the first nine months of 2016 at a total cost of $604 million.

Cash dividends declared on M&T’s common stock aggregated $114 million in the recent quarter, compared with $109 million and $115 million in the quarters ended September 30, 2016 and June 30, 2017, respectively. Cash dividends on common stock during the nine-month periods ended September 30, 2017 and 2016 were $344 million and $332 million, respectively.  

Cash dividends declared on preferred stock totaled $18 million during each of the two most recent quarters, as compared with $20 million in the third quarter of 2016.  The decline in preferred stock dividends in the two most recent quarters as compared with the third quarter of 2016 resulted from the lower dividend rate for the $500 million of Series F preferred stock issued in October 2016 as compared with the like-amount of Series D preferred stock that had been redeemed in December 2016.

M&T and its subsidiary banks are required to comply with applicable capital adequacy standards established by the federal banking agencies. Pursuant to those regulations, the minimum capital ratios are as follows:

• 4.5% Common Equity Tier 1 (“CET1”) to risk-weighted assets (each as defined in the capital regulations);

• 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets (each as defined in the capital regulations);

• 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets (each as defined in the capital regulations); and

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

In addition, capital regulations provide for the phase-in of a “capital conservation buffer” composed entirely of CET1 on top of these minimum risk-weighted asset ratios. When fully phased-in on January 1, 2019 the capital conservation buffer will be 2.5%. For 2017, the phase-in transition portion of that buffer is 1.25%.

The regulatory capital ratios of the Company and its bank subsidiaries, M&T Bank and Wilmington Trust, N.A., as of September 30, 2017 are presented in the accompanying table.

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REGULATORY CAPITAL RATIOS

September 30, 2017

	M&T	M&T		Wilmington
	(Consolidated)	Bank		Trust, N.A.
Common equity Tier 1	10.98%		10.69%	67.58%
Tier 1 capital	12.25%		10.69%	67.58%
Total capital	14.87%		12.99%	68.14%
Tier 1 leverage	10.35%		9.05%	14.55%

The Company is subject to the comprehensive regulatory framework applicable to bank and financial holding companies and their subsidiaries, which includes regular examinations by a number of regulators. Regulation of financial institutions such as M&T and its subsidiaries is intended primarily for the protection of depositors, the Deposit Insurance Fund of the FDIC and the banking and financial system as a whole, and generally is not intended for the protection of shareholders, investors or creditors other than insureddepositors. Changes in laws, regulations and regulatory policies applicable to the Company’s operations can increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive environment in which the Company operates, all of which could have a material effect on the business, financial condition or results of operations of the Company and in M&T’s ability to pay dividends. For additional information concerning this comprehensive regulatory framework, refer to Part I, Item 1 of M&T’s Form 10-K for the year ended December 31, 2016.

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.  As disclosed in M&T’s Form 10-K for the year ended December 31, 2016, in the fourth quarter of 2016 the Company revised its funds transfer pricing allocation related to borrowings.  Additionally, during the second quarter of 2017, the Company revised its funds transfer pricing allocation related to certain deposit categories.  As a result of the changes and as described in note 14 of Notes to Financial Statements, prior period financial information has been reclassified to provide segment information on a comparable basis.

The Business Banking segment contributed net income of $31 million during the quarter ended September 30, 2017, compared with $24 million in the third quarter of 2016 and $29 million in the second quarter of 2017.  As compared with the third quarter of 2016, the recent quarter’s higher net income primarily reflected an $8 million increase in net interest income that resulted from a widening of the net interest margin on deposits of 16 basis points and an increase in average outstanding deposit balances of $629 million.  The improvement in net income in 2017’s third quarter as compared with the immediately preceding quarter reflected a $4 million increase in net interest income. That improvement was attributable to higher average outstanding deposit balances of $254 million, a widening of the net interest margin on deposits of 3 basis points and the impact of one additional day in the current quarter.  Net income earned by the Business Banking segment totaled $85 million during the first nine months of 2017, compared with $77 million in the year-earlier period.  That 10% increase in net income was attributable to a $16 million rise in net interest income and higher merchant discount and credit card fees of $2 million offset, in part, by a $5 million increase in the provision for credit losses, predominantly due to higher net charge-offs.  The improvement in net interest income reflected a widening of the net interest margin on deposits of 15 basis points and an increase in average outstanding deposit balances of $399 million.

Net income of the Commercial Banking segment was $110 million in the recent quarter, compared with $103 million in 2016’s third quarter and $106 million in the second quarter of 2017.  The recent quarter’s 7% rise in net income as compared with the third quarter of 2016 was largely due to a $12 million decrease in the provision for credit losses and a $6 million increase in net interest income. Those favorable factors were partially offset by an $8

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million decline in letter of credit and credit-related fees, primarily due to lower loan syndication fees.  The higher net interest income resulted predominately from a widening of the net interest margin on deposits of 40 basis points and higher average outstanding balances of loans of $780 million, partially offset by a narrowing of the net interest margin on loans of 15 basis points and lower average deposit balances of $795 million.  The increase in net income in the recent quarter as compared with the second quarter of 2017 was largely due to a $13 million decrease in the provision for credit losses and higher net interest income of $3 million, reflecting the impact of one additional day in the current quarter, partially offset by a $9 million decrease in credit-related fees, primarily due to lower loan syndication fees.  Year-to-date net income for the Commercial Banking segment totaled $328 million in 2017, compared with $309 million in 2016. That improvement was largely due to higher net interest income of $19 million, a $7 million decline in the provision for credit losses and a $4 million increase on gains on sales of previously leased equipment.  The improvement in net interest income reflected a widening of the net interest margin on deposits of 31 basis points and higher average loan balances of $1.3 billion, partially offset by a narrowing of the net interest margin on loans of 17 basis points.

The Commercial Real Estate segment recorded net income of $97 million in the third quarter of 2017, compared with $90 million in the year-earlier period and $87 million in the second quarter of 2017.  The recent quarter’s improvement in net income as compared with the third quarter of 2016 reflects a $10 million rise in net interest income and a $3 million decrease in the provision for credit losses, partially offset by lower trading account and foreign exchange gains of $5 million, due predominately to reduced activity related to interest rate swap transactions executed on behalf of customers. The higher net interest income resulted from an increase in average outstanding loan balances of $1.1 billion and a widening of the net interest margin on deposits of 46 basis points, partially offset by a narrowing of the net interest margin on loans of 5 basis points.  The recent quarter’s 11% increase in net income as compared with the immediately preceding quarter reflected higher mortgage banking revenues as previously noted, resulting from increased loan origination activities, and a $5 million increase in net interest income.  The higher net interest income resulted largely from a widening of net interest margin on loans of 4 basis points and the impact of one additional day in the current quarter. Net income for the Commercial Real Estate segment totaled $269 million in the first nine months of 2017, compared with $255 million in the similar 2016 period.  That improvement resulted from a rise in net interest income of $33 million and higher letter of credit and other credit-related fees of $4 million, partially offset by lower trading account and foreign exchange gains of $11 million and a $5 million increase in personnel-related expenses.  The higher net interest income resulted from increased average outstanding loan balances of $2.2 billion and a widening of the net interest margin on deposits of 37 basis points offset, in part, by a narrowing of the net interest margin on loans of 13 basis points. The lower trading account and foreign exchange gains during the nine-month period ended September 30, 2017 resulted from decreased activity related to interest rate swap transactions executed on behalf of customers.

Net income earned by the Discretionary Portfolio segment totaled $32 million during the three-month period ended September 30, 2017, compared with $46 million in the year-earlier period and $30 million in the second quarter of 2017.  Reflected in the results for the third quarter of 2016 were net after-tax investment securities gains of $17 million ($28 million pre-tax), while there were no significant gains or losses on investment securities in 2017.  Largely in response to the provisions of the Dodd-Frank Act commonly referred to as the “Volcker Rule,” the Company sold substantially all of its collateralized debt obligations in 2016’s third quarter.  In addition to those gains on investment securities, contributing to the recent quarter decline in net income as compared with the third quarter of 2016 was a $17 million decline in net interest income, due largely to lower average outstanding loan balances of $3.4 billion and a narrowing of the net interest margin on loans of 9 basis points.  Partially offsetting those unfavorable factors were a $6 million decline in the provision for credit losses and lower loan and other real estate servicing costs.  As compared with the second quarter of 2017, a $6 million decrease in the provision for credit losses and lower operating expenses in the recent quarter were largely offset by a $7 million decline in net interest income.  The lower net interest income reflected decreased average outstanding loan balances of $758 million and a narrowing of the net interest margin on investment securities of 6 basis points.  The Discretionary Portfolio segment recorded net income of $95 million and $135 million in the first nine months of 2017 and 2016, respectively.  That year-over-year decline was predominantly the result of a $57 million decrease in net interest income and the noted

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investment securities gains recorded in 2016, partially offset by lower loan and other realestate-related servicing costs. The decrease in net interest income reflected lower average outstanding loan balances of $3.6 billion and a 12 basis point narrowing of the net interest margin on loans, each largely due to pay downs of loans obtained in the acquisition of Hudson City, partially offset by a widening of the net interest margin on investment securities of 9 basis points.

Net income recorded by the Residential Mortgage Banking segment aggregated $14 million in each of the two most recent quarters, compared with $16 million in the third quarter of 2016. The decline in net income for the third quarter of 2017 as compared with the year-earlier period was predominantly attributable to lower revenues of $7 million associated with mortgage origination and sales activities (including intersegment revenues) and servicing income.  As compared with the second quarter of 2017, increased personnel expenses and a decrease in net interest income were largely offset by higher origination and servicing income.  Year-to-date net income for this segment totaled $37 million in 2017 and $43 million in 2016.  Contributing to that decline were decreased revenues from mortgage origination and sales activities (including intersegment revenues) and from servicing residential real estate loans.

Net income for the Retail Banking segment totaled $96 million in the quarter ended September 30, 2017, compared with $75 million in the year-earlier period and $100 million in the second quarter of 2017. As compared with the third quarter of 2016, a $30 million rise in net interest income in the recent quarter and decreases in advertising, marketing and personnel-related costs contributed to the improvement.The higher net interest income was due to a 39 basis point widening of the net interest margin on deposits offset, in part, by lower average outstanding deposit balances of $3.9 billion. The modest decline in net income in the recent quarter as compared with the second quarter of 2017 reflected a $7 million rise in the provision for credit losses and an increase in equipment and net occupancy costs of $5 million.  Partially offsetting those unfavorable factors was a $7 million increase in net interest income, resulting largely from a widening of the net interest margin on deposits of 6 basis points, the impact of one additional day in the current quarter and an increase in the average outstanding loan balances of $420 million, partially offset by lower average outstanding deposit balances of $1.4 billion. The Retail Banking segment recorded net income of $283 million and $219 million in the first nine months of 2017 and 2016, respectively. That improvement was predominantly due to a $79 million rise in net interest income, primarily reflecting a widening of the net interest margin on deposits of 34 basis points that was offset, in part, by lower average outstanding deposit balances of $3.1 billion, and a $14 million decrease in the provision for credit losses due, in part, to higher levels of partial charge-offs recognized in the first quarter of 2016 associated with loans for which the Company identified that the customer was either bankrupt or deceased.

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 results of BLG, merger-related expenses resulting from 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 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 of $24 million for the third quarter of 2017 and $3 million in the corresponding 2016 quarter, compared with net income of $16 million in the second quarter of 2017.  The higher net loss in the recent quarter as compared with the year-earlier quarter resulted largely from increased legal-related and professional services costs of $66 million (including additions to the reserve for legal matters of $50 million in 2017’s third quarter) and a $6 million increase in personnel-related expenses. Those unfavorable factors were partially offset by the favorable impact from the Company’s allocation methodologies in the recent quarter and higher trust income of $6 million. As compared with the net income earned in the second quarter of 2017, the recent quarter’s net loss predominately reflected the $50 million addition to the reserve for legal matters, partially offset by the favorable impact from the Company’s allocation methodology. The “All Other” category had net losses of $12 million and $54 million for the nine-month periods ended September 30, 2017 and 2016, respectively.  The lower net

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loss in the 2017 period was predominantly due to: merger-related expenses of $36 million in 2016(there were no such expenses in 2017); higher trust income of $22 million; tax benefits of $19 million recognized in 2017 associated with the adoption of new accounting guidance requiring that excess tax benefits associated with share-based compensation be recognized in income tax expense in the income statement; and the favorable impact from the Company’s allocation methodology. Those favorable factors were partially offset by higher legal-related and professional services costs and personnel-related expenses during 2017.

Recent Accounting Developments

A discussion of recent accounting developments is included in note 16 of Notes to 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 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

	2017 Quarters									2016 Quarters
	Third			Second			First			Fourth			Third			Second			First
Earnings and dividends
Amounts in thousands, except per share
Interest income (taxable-equivalent basis)	$	1,066,038			1,039,149			1,014,032			990,284			976,240			977,143			979,166
Interest expense		100,076			92,213			91,773			107,137			111,175			106,802			100,870
Net interest income		965,962			946,936			922,259			883,147			865,065			870,341			878,296
Less: provision for credit losses		30,000			52,000			55,000			62,000			47,000			32,000			49,000
Other income		459,429			460,816			446,845			465,459			491,350			448,254			420,933
Less: other expense		806,025			750,635			787,852			769,103			752,392			749,895			776,095
Income before income taxes		589,366			605,117			526,252			517,503			557,023			536,700			474,134
Applicable income taxes		224,615			215,328			169,326			179,549			200,314			194,147			169,274
Taxable-equivalent adjustment		8,828			8,736			7,999			7,383			6,725			6,522			6,332
Net income	$	355,923			381,053			348,927			330,571			349,984			336,031			298,528
Net income available to common shareholders-diluted	$	335,804			360,662			328,567			307,797			326,998			312,974			275,748
Per common share data
Basic earnings	$	2.22			2.36			2.13			1.98			2.10			1.98			1.74
Diluted earnings		2.21			2.35			2.12			1.98			2.10			1.98			1.73
Cash dividends	$	.75			.75			.75			.70			.70			.70			.70
Average common shares outstanding
Basic		151,347			152,857			154,427			155,123			155,493			157,802			158,734
Diluted		151,691			153,276			154,949			155,700			156,026			158,341			159,181
Performance ratios, annualized
Return on
Average assets	1.18		%		1.27	%		1.15	%		1.05	%		1.12	%		1.09	%		.97	%
Average common shareholders’ equity		8.89	%		9.67	%		8.89	%		8.13	%		8.68	%		8.38	%		7.44	%
Net interest margin on average earning assets (taxable-equivalent     basis)		3.53	%		3.45	%		3.34	%		3.08	%		3.05	%		3.13	%		3.18	%
Nonaccrual loans to total loans and leases, net of    unearned discount		.99	%		.98	%		1.04	%		1.01	%		.93	%		.96	%		1.00	%
Net operating (tangible) results (a)
Net operating income (in thousands)	$	360,658			385,974			354,035			336,095			355,929			350,604			320,064
Diluted net operating income per common share		2.24			2.38			2.15			2.01			2.13			2.07			1.87
Annualized return on
Average tangible assets		1.25	%		1.33	%		1.21	%		1.10	%		1.18	%		1.18	%		1.09	%
Average tangible common shareholders’ equity		13.03	%		14.18	%		13.05	%		11.93	%		12.77	%		12.68	%		11.62	%
Efficiency ratio (b)		56.00	%		52.74	%		56.93	%		56.42	%		55.92	%		55.06	%		57.00	%
Balance sheet data
In millions, except per share
Average balances
Total assets (c)	$	119,515			120,765			122,978			125,734			124,725			123,706			123,252
Total tangible assets (c)		114,872			116,117			118,326			121,079			120,064			119,039			118,577
Earning assets		108,642			109,987			112,008			114,254			112,864			111,872			111,211
Investment securities		15,443			15,913			15,999			15,417			14,361			14,914			15,348
Loans and leases, net of unearned discount		88,386			89,268			89,797			89,977			88,732			88,155			87,584
Deposits		93,134			94,201			96,300			96,914			95,852			94,033			92,391
Common shareholders’ equity (c)		15,069			15,053			15,091			15,181			15,115			15,145			15,047
Tangible common shareholders’ equity (c)		10,426			10,405			10,439			10,526			10,454			10,478			10,372
At end of quarter
Total assets (c)	$	120,402			120,897			123,223			123,449			126,841			123,821			124,626
Total tangible assets (c)		115,761			116,251			118,573			118,797			122,183			119,157			119,955
Earning assets		109,365			109,976			112,287			112,192			115,293			112,057			113,005
Investment securities		15,074			15,816			15,968			16,250			14,734			14,963			15,467
Loans and leases, net of unearned discount		87,925			89,081			89,313			90,853			89,646			88,522			87,872
Deposits		93,513			93,541			97,043			95,494			98,137			94,650			94,215
Common shareholders’ equity, net of undeclared cumulative     preferred dividends (c)		15,083			15,049			14,978			15,252			15,106			15,237			15,120
Tangible common shareholders’ equity (c)		10,442			10,403			10,328			10,600			10,448			10,573			10,449
Equity per common share		99.70			98.66			97.40			97.64			97.47			96.49			95.00
Tangible equity per common share		69.02			68.20			67.16			67.85			67.42			66.95			65.65
Market price per common share
High	$	166.85			164.03			173.72			158.35			120.40			121.11			119.24
Low		141.12			147.55			149.51			112.25			111.13			107.01			100.08
Closing		161.04			161.95			154.73			156.43			116.10			118.23			111.00

(a) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related 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 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

	2017 Quarters									2016 Quarters
	Third			Second			First			Fourth			Third			Second			First
Income statement data (in thousands, except per share)
Net income
Net income	$	355,923			381,053			348,927			330,571			349,984			336,031			298,528
Amortization of core deposit and other intangible assets (a)		4,735			4,921			5,108			5,524			5,945			6,936			7,488
Merger-related expenses (a)		—			—			—			—			—			7,637			14,048
Net operating income	$	360,658			385,974			354,035			336,095			355,929			350,604			320,064
Earnings per common share
Diluted earnings per common share	$	2.21			2.35			2.12			1.98			2.10			1.98			1.73
Amortization of core deposit and other intangible assets (a)		.03			.03			.03			.03			.03			.04			.05
Merger-related expenses (a)		—			—			—			—			—			.05			.09
Diluted net operating earnings per common share	$	2.24		$	2.38		$	2.15		$	2.01		$	2.13		$	2.07		$	1.87
Other expense
Other expense	$	806,025			750,635			787,852			769,103			752,392			749,895			776,095
Amortization of core deposit and other intangible assets		(7,808	)		(8,113	)		(8,420	)		(9,089	)		(9,787	)		(11,418	)		(12,319	)
Merger-related expenses		—			—			—			—			—			(12,593	)		(23,162	)
Noninterest operating expense	$	798,217			742,522			779,432			760,014			742,605			725,884			740,614
Merger-related expenses
Salaries and employee benefits	$	—			—			—			—			—			60			5,274
Equipment and net occupancy		—			—			—			—			—			339			939
Outside data processing and software		—			—			—			—			—			352			715
Advertising and marketing		—			—			—			—			—			6,327			4,195
Printing, postage and supplies		—			—			—			—			—			545			937
Other costs of operations		—			—			—			—			—			4,970			11,102
Total	$	—			—			—			—			—			12,593			23,162
Efficiency ratio
Noninterest operating expense (numerator)	$	798,217			742,522			779,432			760,014			742,605			725,884			740,614
Taxable-equivalent net interest income		965,962			946,936			922,259			883,147			865,065			870,341			878,296
Other income		459,429			460,816			446,845			465,459			491,350			448,254			420,933
Less: Gain on bank investment securities		—			(17	)		—			1,566			28,480			264			4
Denominator	$	1,425,391			1,407,769			1,369,104			1,347,040			1,327,935			1,318,331			1,299,225
Efficiency ratio		56.00	%		52.74	%		56.93	%		56.42	%		55.92	%		55.06	%		57.00	%
Balance sheet data (in millions)
Average assets
Average assets	$	119,515			120,765			122,978			125,734			124,725			123,706			123,252
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(82	)		(90	)		(98	)		(102	)		(112	)		(122	)		(134	)
Deferred taxes		32			35			39			40			44			48			52
Average tangible assets	$	114,872			116,117			118,326			121,079			120,064			119,039			118,577
Average common equity
Average total equity	$	16,301			16,285			16,323			16,673			16,347			16,377			16,279
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,492	)		(1,232	)		(1,232	)		(1,232	)
Average common equity		15,069			15,053			15,091			15,181			15,115			15,145			15,047
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(82	)		(90	)		(98	)		(102	)		(112	)		(122	)		(134	)
Deferred taxes		32			35			39			40			44			48			52
Average tangible common equity	$	10,426			10,405			10,439			10,526			10,454			10,478			10,372
At end of quarter
Total assets
Total assets		120,402			120,897			123,223			123,449			126,841			123,821			124,626
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(79	)		(86	)		(95	)		(98	)		(107	)		(117	)		(128	)
Deferred taxes		31			33			38			39			42			46			50
Total tangible assets	$	115,761			116,251			118,573			118,797			122,183			119,157			119,955
Total common equity
Total equity	$	16,318			16,284			16,213			16,487			16,341			16,472			16,355
Preferred stock		(1,232	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)		(1,232	)
Undeclared dividends —cumulative preferred stock		(3	)		(3	)		(3	)		(3	)		(3	)		(3	)		(3	)
Common equity, net of undeclared cumulative preferred dividends		15,083			15,049			14,978			15,252			15,106			15,237			15,120
Goodwill		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)		(4,593	)
Core deposit and other intangible assets		(79	)		(86	)		(95	)		(98	)		(107	)		(117	)		(128	)
Deferred taxes		31			33			38			39			42			46			50
Total tangible common equity	$	10,442			10,403			10,328			10,600			10,448			10,573			10,449

(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

	2017 Third Quarter								2017 Second Quarter								2017 First Quarter
	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
Average balance in millions; interest in thousands
Assets
Earning assets
Loans and leases, net of unearned     discount*
Commercial, financial, etc.	$	21,734		$	217,953		3.98	%		22,350			213,840		3.84	%		22,290			201,126		3.66	%
Real estate — commercial		33,257			382,352		4.50			33,214			361,313		4.30			33,175			347,010		4.18
Real estate — consumer		20,609			204,008		3.96			21,318			210,152		3.94			22,179			217,263		3.92
Consumer		12,786			157,721		4.89			12,386			147,597		4.78			12,153			140,170		4.68
Total loans and leases, net		88,386			962,034		4.32			89,268			932,902		4.19			89,797			905,569		4.09
Interest-bearing deposits at banks		4,740			14,970		1.25			4,741			12,213		1.03			6,152			12,162		.80
Federal funds sold		—			1		1.58			1			3		1.44			—			—		—
Trading account		73			351		1.92			64			240		1.50			60			328		2.20
Investment securities**
U.S. Treasury and federal agencies		14,632			81,707		2.22			15,060			87,171		2.32			15,113			88,573		2.38
Obligations of states and political    subdivisions		37			442		4.69			46			553		4.86			56			578		4.17
Other		774			6,533		3.35			807			6,067		3.02			830			6,822		3.33
Total investment securities		15,443			88,682		2.28			15,913			93,791		2.36			15,999			95,973		2.43
Total earning assets		108,642			1,066,038		3.89			109,987			1,039,149		3.79			112,008			1,014,032		3.67
Allowance for credit losses		(1,014	)							(1,011	)							(1,003	)
Cash and due from banks		1,297								1,257								1,283
Other assets		10,590								10,532								10,690
Total assets	$	119,515								120,765								122,978
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
Savings and interest-checking    deposits	$	53,287			37,714		.28			53,611			30,543		.23			53,260			25,634		.20
Time deposits		7,673			13,992		.72			8,559			16,303		.76			9,561			18,998		.81
Deposits at Cayman Islands office		169			310		.73			163			281		.69			192			265		.56
Total interest-bearing deposits		61,129			52,016		.34			62,333			47,127		.30			63,013			44,897		.29
Short-term borrowings		244			554		.90			212			378		.71			184			216		.48
Long-term borrowings		8,033			47,506		2.35			8,292			44,708		2.16			8,423			46,660		2.25
Total interest-bearing liabilities		69,406			100,076		.57			70,837			92,213		.52			71,620			91,773		.52
Noninterest-bearing deposits		32,005								31,868								33,287
Other liabilities		1,803								1,775								1,748
Total liabilities		103,214								104,480								106,655
Shareholders’ equity		16,301								16,285								16,323
Total liabilities and shareholders’ equity	$	119,515								120,765								122,978
Net interest spread							3.32								3.27								3.15
Contribution of interest-free funds							.21								.18								.19
Net interest income/margin on     earning assets				$	965,962		3.53	%					946,936		3.45	%					922,259		3.34	%

* Includes nonaccrual loans.

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

(continued)

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M&T BANK CORPORATION AND SUBSIDIARIES

Table 3 (continued)

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

	2016 Fourth Quarter								2016 Third Quarter
	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate
Average balance in millions; interest in thousands
Assets
Earning assets
Loans and leases, net of unearned     discount*
Commercial, financial, etc.	$	21,936		$	191,228		3.47	%		21,480			185,552		3.44	%
Real estate — commercial		32,822			336,597		4.01			31,252			319,694		4.00
Real estate — consumer		23,096			223,758		3.88			24,058			235,813		3.92
Consumer		12,123			138,144		4.53			11,942			136,592		4.55
Total loans and leases, net		89,977			889,727		3.93			88,732			877,651		3.93
Interest-bearing deposits at banks		8,790			11,833		.54			9,681			12,355		.51
Federal funds sold		—			—		—			—			—		—
Trading account		70			358		2.05			90			342		1.52
Investment securities**
U.S. Treasury and federal agencies		14,511			80,510		2.21			13,418			78,259		2.32
Obligations of states and political subdivisions		71			778		4.38			82			888		4.32
Other		835			7,078		3.37			861			6,745		3.12
Total investment securities		15,417			88,366		2.28			14,361			85,892		2.38
Total earning assets		114,254			990,284		3.45			112,864			976,240		3.44
Allowance for credit losses		(989	)							(982	)
Cash and due from banks		1,278								1,281
Other assets		11,191								11,562
Total assets	$	125,734								124,725
Liabilities and shareholders’ equity
Interest-bearing liabilities
Interest-bearing deposits
Savings and interest-checking deposits	$	54,055			26,798		.20			52,516			24,067		.18
Time deposits		10,936			23,766		.86			12,334			27,886		.90
Deposits at Cayman Islands office		206			219		.42			220			204		.37
Total interest-bearing deposits		65,197			50,783		.31			65,070			52,157		.32
Short-term borrowings		200			151		.30			231			169		.29
Long-term borrowings		9,901			56,203		2.26			10,287			58,849		2.28
Total interest-bearing liabilities		75,298			107,137		.57			75,588			111,175		.59
Noninterest-bearing deposits		31,717								30,782
Other liabilities		2,046								2,008
Total liabilities		109,061								108,378
Shareholders’ equity		16,673								16,347
Total liabilities and shareholders’ equity	$	125,734								124,725
Net interest spread							2.88								2.85
Contribution of interest-free funds							.20								.20
Net interest income/margin on earning assets				$	883,147		3.08	%					865,065		3.05	%

* Includes nonaccrual loans.

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

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

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

Item 4. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures. Based upon their evaluation of the effectiveness of M&T’s disclosure controls and procedures (as defined in Exchange Act rules 13a-15(e) and 15d-15(e)), Robert G. Wilmers, Chairman of the Board and Chief Executive Officer, and Darren J. King, Executive Vice President and Chief Financial Officer, concluded that M&T’s disclosure controls and procedures were effective as of September 30, 2017.

(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 September 30, 2017 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 and other matters 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 proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $50 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

DOJ Investigation (United States v. Wilmington Trust Corp., et al, District of Delaware, Crim.   No. 15-23-RGA): Prior to M&T’s acquisition of Wilmington Trust Corporation, the Department of Justice (“DOJ”) commenced an investigation of Wilmington Trust Corporation relating to Wilmington Trust Corporation’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 Corporation by M&T. On January 6, 2016, the U.S. Attorney for the District of Delaware obtained an indictment against Wilmington Trust Corporation relating to alleged conduct that occurred prior to M&T’s acquisition of Wilmington Trust Corporation in May 2011.  On October 9, 2017, Wilmington Trust Corporation reached a civil settlement with the U.S. Attorney’s Office for the District of Delaware to resolve this matter. Under the terms of the agreement, Wilmington Trust Corporation agreed to pay $60 million. The settlement amount included $16 million previously paid by Wilmington Trust Corporation to the U.S. Securities and Exchange Commission in a related action. Wilmington Trust Corporation did not admit any liability, nor was there any finding of wrongdoing.All indictments and charges against Wilmington Trust Corporation were dismissed by Court order on October 12, 2017.

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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 Corporation, alleging that Wilmington Trust Corporation’s financial reporting and securities filings were in violation of securities laws. The cases were consolidated and Wilmington Trust Corporation moved to dismiss. The Court issued an order denying Wilmington Trust Corporation’s motion to dismiss on March 20, 2014. Fact discovery commenced. Plaintiffs’ motion for class certification was granted on September 3, 2015.  On April 13, 2016, the Court issued an order staying fact discovery in the case pending completion of the trial in U.S. v. Wilmington Trust Corp., et al. On September 19, 2016, the plaintiffs filed a motion to modify the stay of discovery in this matter to allow for additional, limited discovery. On December 19, 2016, the Court issued an order lifting the existing stay in its entirety.  The Court has removed this matter from the trial calendar, to be rescheduled at some future date.

Due to their complex nature, it is difficult to estimate when litigation or 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.  

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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, 2016.

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)
July 1 — July 31, 2017		600,005	$	161.59		600,000	$	803,048,000
August 1 — August 31, 2017		778,806		163.32		778,052		675,976,000
September 1 — September 30, 2017		4,694		149.10		4,694		675,276,000
Total		1,383,505	$	162.52		1,382,746

(1) The total number of shares purchased during the periods indicated includes shares purchased as part of publicly announced programs and 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 July 18, 2017, M&T announced a program to purchase up to $900 million of its common stock through June 30, 2018.

Item 3. Defaults Upon Senior Securities.

(Not applicable.)

Item 4. Mine Safety Disclosures.

(None.)

Item 5. Other Information.

(None.)

- 92 -

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.

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: November 3, 2017	By:	/s/ Darren J. King
		Darren J. King
		Executive Vice President and Chief Financial Officer

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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: November 3, 2017

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

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Darren J. King, 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: November 3, 2017

By:	/s/ Darren J. King
	Darren J. King
	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 September 30, 2017 (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

November 3, 2017

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, Darren J. King, 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 September 30, 2017 (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/ Darren J. King

Darren J. King

November 3, 2017

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.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
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		150,515,367

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Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 1,368,252	$ 1,320,549
Interest-bearing deposits at banks	6,306,484	5,000,638
Trading account	170,516	323,867
Investment securities (includes pledged securities that can be sold or repledged of $488,200 at September 30, 2017; $1,203,473 at December 31, 2016)
Available for sale (cost: $11,369,815 at September 30, 2017; $13,338,301 at December 31, 2016)	11,416,824	13,332,072
Held to maturity (fair value: $3,247,954 at September 30, 2017; $2,451,222 at December 31, 2016)	3,242,124	2,457,278
Other (fair value: $414,978 at September 30, 2017; $461,118 at December 31, 2016)	414,978	461,118
Total investment securities	15,073,926	16,250,468
Loans and leases	88,171,225	91,101,677
Unearned discount	(246,091)	(248,261)
Loans and leases, net of unearned discount	87,925,134	90,853,416
Allowance for credit losses	(1,013,326)	(988,997)
Loans and leases, net	86,911,808	89,864,419
Premises and equipment	656,713	675,263
Goodwill	4,593,112	4,593,112
Core deposit and other intangible assets	78,614	97,655
Accrued interest and other assets	5,242,379	5,323,235
Total assets	120,401,804	123,449,206
Liabilities
Noninterest-bearing deposits	33,111,246	32,813,896
Savings and interest-checking deposits	52,936,615	52,346,207
Time deposits	7,233,518	10,131,846
Deposits at Cayman Islands office	232,014	201,927
Total deposits	93,513,393	95,493,876
Federal funds purchased and agreements to repurchase securities	200,768	163,442
Accrued interest and other liabilities	1,791,946	1,811,431
Long-term borrowings	8,577,645	9,493,835
Total liabilities	104,083,752	106,962,584
Shareholders' equity
Preferred stock, $1.00 par, 1,000,000 shares authorized; Issued and outstanding: Liquidation preference of $1,000 per share: shares 731,500 at September 30, 2017 and December 31, 2016; Liquidation preference of $10,000 per share: 50,000 shares at September 30, 2017 and December 31, 2016	1,231,500	1,231,500
Common stock, $.50 par, 250,000,000 shares authorized, 159,819,892 shares issued at September 30, 2017; 159,945,678 shares issued at December 31, 2016	79,910	79,973
Common stock issuable, 27,019 shares at September 30, 2017; 32,403 shares at December 31, 2016	1,827	2,145
Additional paid-in capital	6,598,048	6,676,948
Retained earnings	9,909,415	9,222,488
Accumulated other comprehensive income (loss), net	(247,915)	(294,636)
Treasury stock — common, at cost — 8,555,636 shares at September 30, 2017; 3,764,742 shares at December 31, 2016	(1,254,733)	(431,796)
Total shareholders’ equity	16,318,052	16,486,622
Total liabilities and shareholders’ equity	$ 120,401,804	$ 123,449,206

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Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Pledged securities that can be sold or repledged	$ 488,200	$ 1,203,473
Investment securities, available for sale, amortized cost	11,369,815	13,338,301
Investment securities, held to maturity, fair value	3,247,954	2,451,222
Other, fair value	$ 414,978	$ 461,118
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	159,819,892	159,945,678
Common stock issuable, shares	27,019	32,403
Treasury stock, shares	8,555,636	3,764,742
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
Preferred stock, shares outstanding		50,000
Preferred stock, liquidation preference per share		$ 10,000

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Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest income
Loans and leases, including fees	$ 953,662	$ 871,345	$ 2,776,340	$ 2,602,208
Investment securities
Fully taxable	87,937	84,893	276,057	274,092
Exempt from federal taxes	345	623	1,154	2,081
Deposits at banks	14,970	12,354	39,345	33,684
Other	296	300	760	905
Total interest income	1,057,210	969,515	3,093,656	2,912,970
Interest expense
Savings and interest-checking deposits	37,714	24,067	93,891	60,906
Time deposits	13,992	27,886	49,293	79,075
Deposits at Cayman Islands office	310	204	856	578
Short-term borrowings	554	169	1,148	3,474
Long-term borrowings	47,506	58,849	138,874	174,814
Total interest expense	100,076	111,175	284,062	318,847
Net interest income	957,134	858,340	2,809,594	2,594,123
Provision for credit losses	30,000	47,000	137,000	128,000
Net interest income after provision for credit losses	927,134	811,340	2,672,594	2,466,123
Other income
Mortgage banking revenues	96,737	103,747	267,592	275,193
Service charges on deposit accounts	109,356	107,935	319,589	314,212
Trust income	124,900	118,654	371,712	350,181
Brokerage services income	14,676	15,914	48,677	48,190
Trading account and foreign exchange gains	7,058	12,754	24,833	33,434
Gain (loss) on bank investment securities		28,480	(17)	28,748
Other revenues from operations	106,702	103,866	334,704	310,579
Total other income	459,429	491,350	1,367,090	1,360,537
Other expense
Salaries and employee benefits	399,089	399,786	1,247,851	1,230,246
Equipment and net occupancy	75,558	75,263	223,721	225,165
Outside data processing and software	45,761	42,878	134,637	128,402
FDIC assessments	23,969	28,459	78,149	76,054
Advertising and marketing	17,403	21,996	49,837	66,063
Printing, postage and supplies	8,732	8,972	27,397	30,865
Amortization of core deposit and other intangible assets	7,808	9,787	24,341	33,524
Other costs of operations	227,705	165,251	558,579	488,063
Total other expense	806,025	752,392	2,344,512	2,278,382
Income before taxes	580,538	550,298	1,695,172	1,548,278
Income taxes	224,615	200,314	609,269	563,735
Net income	355,923	349,984	1,085,903	984,543
Net income available to common shareholders
Basic	335,801	326,992	1,025,011	915,670
Diluted	$ 335,804	$ 326,998	$ 1,025,023	$ 915,686
Net income per common share
Basic	$ 2.22	$ 2.10	$ 6.71	$ 5.82
Diluted	2.21	2.10	6.69	5.80
Cash dividends per common share	$ 0.75	$ 0.70	$ 2.25	$ 2.10
Average common shares outstanding
Basic	151,347	155,493	152,866	157,336
Diluted	151,691	156,026	153,293	157,843

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Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Partners Capital [Abstract]
Net income	$ 355,923	$ 349,984	$ 1,085,903	$ 984,543
Other comprehensive income, net of tax and reclassification adjustments:
Net unrealized gains (losses) on investment securities	18,258	(17,133)	33,834	127,331
Cash flow hedges adjustments	(1,120)	(23)	(2,098)	(70)
Foreign currency translation adjustment	863	(229)	2,489	(1,847)
Defined benefit plans liability adjustments	4,165	3,847	12,496	11,654
Total other comprehensive income (loss)	22,166	(13,538)	46,721	137,068
Total comprehensive income	$ 378,089	$ 336,446	$ 1,132,624	$ 1,121,611

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Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net income	$ 1,085,903	$ 984,543
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	137,000	128,000
Depreciation and amortization of premises and equipment	84,631	79,911
Amortization of capitalized servicing rights	41,475	37,979
Amortization of core deposit and other intangible assets	24,341	33,524
Provision for deferred income taxes	9,926	109,274
Asset write-downs	10,878	14,276
Net gain on sales of assets	(27,967)	(46,732)
Net change in accrued interest receivable, payable	(23,059)	(13,833)
Net change in other accrued income and expense	110,138	113,809
Net change in loans originated for sale	523,895	(285,824)
Net change in trading account assets and liabilities	88,705	(82,837)
Net cash provided by operating activities	2,065,866	1,072,090
Cash flows from investing activities
Proceeds from sales of investment securities Available for sale	512,143	61,947
Proceeds from sales of investment securities Other	178,244	94,516
Proceeds from maturities of investment securities Available for sale	1,650,258	1,690,665
Proceeds from maturities of investment securities Held to maturity	390,278	459,399
Purchases of investment securities Available for sale	(248,705)	(1,150,523)
Purchases of investment securities Held to maturity	(1,175,608)	(15,806)
Purchases of investment securities Other	(132,104)	(1,514)
Net decrease (increase) in loans and leases	2,259,049	(2,021,004)
Net increase in interest-bearing deposits at banks	(1,305,846)	(3,183,286)
Capital expenditures, net	(62,515)	(65,277)
Net decrease in loan servicing advances	47,786	121,226
Other, net	66,357	11,459
Net cash provided (used) by investing activities	2,179,337	(3,998,198)
Cash flows from financing activities
Net increase (decrease) in deposits	(1,976,237)	6,195,511
Net increase (decrease) in short-term borrowings	37,326	(1,886,701)
Proceeds from long-term borrowings	2,145,950
Payments on long-term borrowings	(3,029,320)	(427,035)
Purchases of treasury stock	(981,691)	(604,000)
Dividends paid — common	(345,166)	(333,042)
Dividends paid — preferred	(53,842)	(58,003)
Other, net	5,480	3,540
Net cash provided (used) by financing activities	(4,197,500)	2,890,270
Net increase (decrease) in cash and cash equivalents	47,703	(35,838)
Cash and cash equivalents at beginning of period	1,320,549	1,368,040
Cash and cash equivalents at end of period	1,368,252	1,332,202
Supplemental disclosure of cash flow information
Interest received during the period	3,088,042	2,923,278
Interest paid during the period	310,640	387,695
Income taxes paid during the period	462,163	138,375
Supplemental schedule of noncash investing and financing activities
Real estate acquired in settlement of loans	88,551	100,106
Securitization of residential mortgage loans allocated to Available-for-sale investment securities	22,527	18,685
Securitization of residential mortgage loans allocated to capitalized servicing rights	$ 262	$ 193

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Common Stock Issuable [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss), Net [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2015	$ 16,173,289	$ 1,231,500	$ 79,782	$ 2,364	$ 6,680,768	$ 8,430,502	$ (251,627)
Total comprehensive income	1,121,611					984,543	137,068
Preferred stock cash dividends	(60,953)					(60,953)
Exercise of stock warrants into common stock					(223)			$ 223
Purchases of treasury stock	(604,000)							(604,000)
Stock-based compensation plans:
Compensation expense, net	18,376		171		7,315			10,890
Exercises of stock options, net	11,411		18		(183)			11,576
Stock purchase plan	10,594				275			10,319
Directors' stock plan	1,575		2		526			1,047
Deferred compensation plans, net, including dividend equivalents	28		2	(140)	232	(70)		4
Other	1,102				1,102
Common stock cash dividends	(332,057)					(332,057)
Ending balance at Sep. 30, 2016	16,340,976	1,231,500	79,975	2,224	6,689,812	9,021,965	(114,559)	(569,941)
Beginning balance at Dec. 31, 2016	16,486,622	1,231,500	79,973	2,145	6,676,948	9,222,488	(294,636)	(431,796)
Total comprehensive income	1,132,624					1,085,903	46,721
Preferred stock cash dividends	(54,604)					(54,604)
Exercise of stock warrants into common stock					(22,992)			22,992
Purchases of treasury stock	(981,691)							(981,691)
Stock-based compensation plans:
Compensation expense, net	6,016		(63)		(51,606)			57,685
Exercises of stock options, net	61,292				(6,722)			68,014
Stock purchase plan	10,831				2,563			8,268
Directors' stock plan	1,426				225			1,201
Deferred compensation plans, net, including dividend equivalents	(157)			(318)	(368)	(65)		594
Common stock cash dividends	(344,307)					(344,307)
Ending balance at Sep. 30, 2017	$ 16,318,052	$ 1,231,500	$ 79,910	$ 1,827	$ 6,598,048	$ 9,909,415	$ (247,915)	$ (1,254,733)

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Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares shares in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Common stock per share dividend amount	$ 2.25	$ 2.10
Retained Earnings [Member]
Common stock per share dividend amount	$ 2.25	$ 2.10
Series A Warrants [Member] | Common Stock [Member]
Exercise of warrants into shares of common stock	304,436	5,320
Exercise of warrants into shares of common stock	165,498	1,983

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Significant accounting policies

9 Months Ended

Sep. 30, 2017

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 Form 10-K for the year ended December 31, 2016 (“2016 Annual Report”), except that effective January 2017 the Company adopted amended accounting guidance that is discussed in note 16 herein.  The most significant of those changes related to the accounting for excess tax benefits or deficiencies associated with share-based compensation whereby beginning in 2017 those amounts are recognized in income tax expense.  Previously, tax effects resulting from changes in M&T’s share price subsequent to the grant date were recorded through shareholders’ equity.  The adoption of this new accounting guidance resulted in a reduction of income tax expense for the three months ended March 31, 2017 of $18 million, or $.12 of diluted earnings per common share. The impact on income tax expense and diluted earnings per common share in the second and third quarters of 2017 was not significant.  In the opinion of management, all adjustments necessary for a fair statement have been made and were all of a normal recurring nature.

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Acquisitions

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Acquisitions

2. Acquisitions

In connection with the acquisition of Hudson City Bancorp, Inc. (“Hudson City”) on November 1, 2015 the Company incurred merger-related expenses related to systems conversions and other costs of integrating and conforming acquired operations with and into the Company. Those expenses consisted largely of professional services and other temporary help fees associated with systems conversions and/or integration of operations; costs related to termination of existing contractual arrangements for various services; initial marketing and promotion expenses designed to introduce the Company to its new customers; severance (for former Hudson City employees); travel costs; and other costs of completing the transaction and commencing operations in new markets and offices.

A summary of merger-related expenses included in the consolidated statement of income follows:

	Nine Months Ended September 30, 2016
	(In thousands)
Salaries and employee benefits	$	5,334
Equipment and net occupancy		1,278
Outside data processing and software		1,067
Advertising and marketing		10,522
Printing, postage and supplies		1,482
Other costs of operations		16,072
Total	$	35,755

There were no merger-related expenses during the three-month or nine-month periods ended September 30, 2017 or during the three-month period ended September 30, 2016.

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Investment securities

9 Months Ended

Sep. 30, 2017

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)
September 30, 2017
Investment securities available for sale:
U.S. Treasury and federal agencies	$	2,017,901		25		10,809	$	2,007,117
Obligations of states and political subdivisions		2,621		59		2		2,678
Mortgage-backed securities:
Government issued or guaranteed		9,155,485		92,915		63,917		9,184,483
Privately issued		30		—		—		30
Other debt securities		136,769		2,739		10,978		128,530
Equity securities		57,009		37,427		450		93,986
		11,369,815		133,165		86,156		11,416,824
Investment securities held to maturity:
Obligations of states and political subdivisions		32,445		190		81		32,554
Mortgage-backed securities:
Government issued or guaranteed		3,063,164		41,849		7,147		3,097,866
Privately issued		141,430		1,753		30,734		112,449
Other debt securities		5,085		—		—		5,085
		3,242,124		43,792		37,962		3,247,954
Other securities		414,978		—		—		414,978
Total	$	15,026,917		176,957		124,118	$	15,079,756

December 31, 2016
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,912,110	386	9,952	$	1,902,544
Obligations of states and political subdivisions		3,570	77	6		3,641
Mortgage-backed securities:
Government issued or guaranteed		10,980,507	88,343	113,989		10,954,861
Privately issued		45	—	1		44
Other debt securities		134,105	1,407	16,996		118,516
Equity securities		307,964	45,073	571		352,466
		13,338,301	135,286	141,515		13,332,072
Investment securities held to maturity:
Obligations of states and political subdivisions		60,858	267	224		60,901
Mortgage-backed securities:
Government issued or guaranteed		2,233,173	37,498	7,374		2,263,297
Privately issued		157,704	897	37,120		121,481
Other debt securities		5,543	—	—		5,543
		2,457,278	38,662	44,718		2,451,222
Other securities		461,118	—	—		461,118
Total	$	16,256,697	173,948	186,233	$	16,244,412

3. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the three-month and nine-month periods ended September 30, 2017.  During the three months ended September 30, 2016, the Company sold substantially all of its collateralized debt obligations held in the available-for-sale investment securities portfolio for a gain of $28 million.  There were no other significant gross realized gains or losses from the sale of investment securities for the three-month and nine-month periods ended September 30, 2016.

At September 30, 2017, 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	$	393,453		392,506
Due after one year through five years		1,632,143		1,622,447
Due after five years through ten years		72,508		72,854
Due after ten years		59,187		50,518
		2,157,291		2,138,325
Mortgage-backed securities available for sale		9,155,515		9,184,513
	$	11,312,806		11,322,838
Debt securities held to maturity:
Due in one year or less	$	18,640		18,738
Due after one year through five years		13,612		13,619
Due after five years through ten years		193		197
Due after ten years		5,085		5,085
		37,530		37,639
Mortgage-backed securities held to maturity		3,204,594		3,210,315
	$	3,242,124		3,247,954

3. Investment securities, continued

A summary of investment securities that as of September 30, 2017 and December 31, 2016 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)
September 30, 2017
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,576,717		(8,002	)		373,852		(2,807	)
Obligations of states and political subdivisions		—		—			474		(2	)
Mortgage-backed securities:
Government issued or guaranteed		2,854,982		(32,123	)		1,298,054		(31,794	)
Other debt securities		1,500		(3	)		60,518		(10,975	)
Equity securities		18,185		(303	)		153		(147	)
		4,451,384		(40,431	)		1,733,051		(45,725	)
Investment securities held to maturity:
Obligations of states and political subdivisions		4,932		(31	)		7,093		(50	)
Mortgage-backed securities:
Government issued or guaranteed		638,863		(2,832	)		157,923		(4,315	)
Privately issued		—		—			53,631		(30,734	)
		643,795		(2,863	)		218,647		(35,099	)
Total	$	5,095,179		(43,294	)		1,951,698		(80,824	)
December 31, 2016
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,710,241		(9,950	)		2,295		(2	)
Obligations of states and political subdivisions		—		—			593		(6	)
Mortgage-backed securities:
Government issued or guaranteed		6,730,829		(113,374	)		81,003		(615	)
Privately issued		—		—			27		(1	)
Other debt securities		100		(1	)		85,400		(16,995	)
Equity securities		17,776		(422	)		151		(149	)
		8,458,946		(123,747	)		169,469		(17,768	)
Investment securities held to maturity:
Obligations of states and political subdivisions		17,988		(126	)		11,891		(98	)
Mortgage-backed securities:
Government issued or guaranteed		618,832		(6,842	)		17,481		(532	)
Privately issued		17,911		(1,222	)		57,016		(35,898	)
		654,731		(8,190	)		86,388		(36,528	)
Total	$	9,113,677		(131,937	)		255,857		(54,296	)

The Company owned 939 individual investment securities with aggregate gross unrealized losses of $124 million at September 30, 2017. Based on a review of each of the securities in the investment securities portfolio at September 30, 2017, the Company concluded that it expected to recover the amortized cost basis of its investment.  As of September 30, 2017, 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 September 30, 2017, the Company has not identified

3. Investment securities, continued

events or changes in circumstances which may have a significant adverse effect on the carrying value of the $415 million of cost method investment securities.

XML

Loans and leases and the allowance for credit losses

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans and leases and the allowance for credit losses

4. Loans and leases and the allowance for credit losses

A summary of current, past due and nonaccrual loans as of September 30, 2017 and December 31, 2016 follows:

	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More (a)		Accruing Loans Acquired at a Discount Past Due 90 days or More (b)		Purchased Impaired (c)		Nonaccrual		Total
	(In thousands)
September 30, 2017
Commercial, financial, leasing, etc.	$	21,486,942		48,159		3,710		369		75		203,996	$	21,743,251
Real estate:
Commercial		24,724,768		273,539		1,710		7,523		20,509		200,193		25,228,242
Residential builder and developer		1,604,095		26,182		—		4,413		10,717		2,416		1,647,823
Other commercial construction		5,952,636		51,132		1,220		—		13,972		19,263		6,038,223
Residential		15,868,656		458,066		249,983		10,025		307,529		236,363		17,130,622
Residential — limited documentation		2,829,667		88,814		—		—		114,141		101,918		3,134,540
Consumer:
Home equity lines and loans		5,275,572		34,878		772		9,856		—		75,584		5,396,662
Automobile		3,327,148		67,280		—		1		—		21,267		3,415,696
Other		4,120,712		33,070		3,893		24,038		—		8,362		4,190,075
Total	$	85,190,196		1,081,120		261,288		56,225		466,943		869,362	$	87,925,134
December 31, 2016
Commercial, financial, leasing, etc.	$	22,287,857		53,503		6,195		417		641		261,434	$	22,610,047
Real estate:
Commercial		25,076,684		183,531		7,054		12,870		31,404		176,201		25,487,744
Residential builder and developer		1,884,989		4,667		5		1,952		14,006		16,707		1,922,326
Other commercial construction		5,985,118		77,701		922		198		14,274		18,111		6,096,324
Residential		17,631,377		485,468		281,298		11,537		378,549		229,242		19,017,471
Residential — limited documentation		3,239,344		88,366		—		—		139,158		106,573		3,573,441
Consumer:
Home equity lines and loans		5,502,091		44,565		—		12,678		—		81,815		5,641,149
Automobile		2,869,232		56,158		—		1		—		18,674		2,944,065
Other		3,491,629		31,286		5,185		21,491		—		11,258		3,560,849
Total	$	87,968,321		1,025,245		300,659		61,144		578,032		920,015	$	90,853,416

(a) Excludes loans acquired at a discount.

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

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

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

One-to-four family residential mortgage loans held for sale were $347 million and $414 million at September 30, 2017 and December 31, 2016, respectively.  Commercial real estate loans held for sale were $224 million at September 30, 2017 and $643 million at December 31, 2016.

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

	September 30,		December 31,
	2017		2016
	(In thousands)
Outstanding principal balance	$	1,584,126		2,311,699
Carrying amount:
Commercial, financial, leasing, etc.		42,878		59,928
Commercial real estate		308,426		456,820
Residential real estate		665,278		799,802
Consumer		127,919		487,721
	$	1,144,501		1,804,271

Purchased impaired loans included in the table above totaled $467 million at September 30, 2017 and $578 million at December 31, 2016, representing less than 1% of the Company’s assets as of each date.  A summary of changes in the accretable yield for loans acquired at a discount for the three months and nine months ended September 30, 2017 and 2016 follows:

	Three Months Ended September 30
	2017						2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)
Balance at beginning of period	$	133,532			163,099		$	162,023			245,195
Interest income		(10,815	)		(20,064	)		(12,784	)		(26,540	)
Reclassifications from nonaccretable balance		30,799			6,041			2,256			12,050
Other (a)		—			1,545			—			(818	)
Balance at end of period	$	153,516			150,621		$	151,495			229,887
	Nine Months Ended September 30
	2017						2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)
Balance at beginning of period	$	154,233			201,153		$	184,618			296,434
Interest income		(32,546	)		(66,505	)		(40,906	)		(97,300	)
Reclassifications from nonaccretable balance		31,829			11,076			7,783			20,647
Other (a)		—			4,897			—			10,106
Balance at end of period	$	153,516			150,621		$	151,495			229,887

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

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

Changes in the allowance for credit losses for the three months ended September 30, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	339,314			366,229			66,006			158,559			78,117	$	1,008,225
Provision for credit losses		2,451			(7,699	)		1,267			33,886			95		30,000
Net charge-offs
Charge-offs		(9,714	)		(258	)		(4,206	)		(32,874	)		—		(47,052	)
Recoveries		4,423			5,895			2,028			9,807			—		22,153
Net (charge-offs) recoveries		(5,291	)		5,637			(2,178	)		(23,067	)		—		(24,899	)
Ending balance	$	336,474			364,167			65,095			169,378			78,212	$	1,013,326

Changes in the allowance for credit losses for the three months ended September 30, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	316,079			349,674			69,660			157,361			77,722	$	970,496
Provision for credit losses		26,222			9,963			(6,232	)		16,539			508		47,000
Net charge-offs
Charge-offs		(21,075	)		(1,564	)		(6,754	)		(29,882	)		—		(59,275	)
Recoveries		6,958			1,704			1,919			7,319			—		17,900
Net (charge-offs) recoveries		(14,117	)		140			(4,835	)		(22,563	)		—		(41,375	)
Ending balance	$	328,184			359,777			58,593			151,337			78,230	$	976,121

Changes in the allowance for credit losses for the nine months ended September 30, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	330,833			362,719			61,127			156,288			78,030	$	988,997
Provision for credit losses		44,642			1,201			14,067			76,908			182		137,000
Net charge-offs
Charge-offs		(51,318	)		(7,556	)		(16,364	)		(96,060	)		—		(171,298	)
Recoveries		12,317			7,803			6,265			32,242			—		58,627
Net (charge-offs) recoveries		(39,001	)		247			(10,099	)		(63,818	)		—		(112,671	)
Ending balance	$	336,474			364,167			65,095			169,378			78,212	$	1,013,326

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

Changes in the allowance for credit losses for the nine months ended September 30, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	300,404			326,831			72,238			178,320			78,199	$	955,992
Provision for credit losses		39,667			29,799			(610	)		59,113			31		128,000
Net charge-offs
Charge-offs		(34,711	)		(3,569	)		(18,816	)		(107,761	)		—		(164,857	)
Recoveries		22,824			6,716			5,781			21,665			—		56,986
Net (charge-offs) recoveries		(11,887	)		3,147			(13,035	)		(86,096	)		—		(107,871	)
Ending balance	$	328,184			359,777			58,593			151,337			78,230	$	976,121

Despite the allocation in the preceding tables, 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 credit 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 loans 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.

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

The following tables provide information with respect to loans and leases that were considered impaired as of September 30, 2017 and December 31, 2016 and for the three-month and nine-month periods ended September 30, 2017 and 2016.

	September 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	148,747		179,120		49,447		168,072		184,432		48,480
Real estate:
Commercial		73,144		81,244		10,200		71,862		86,666		11,620
Residential builder and developer		6,537		6,842		288		7,396		8,361		506
Other commercial construction		1,626		1,785		292		2,475		2,731		448
Residential		97,483		118,030		3,475		86,680		105,944		3,457
Residential — limited documentation		79,030		94,194		4,600		82,547		97,718		6,000
Consumer:
Home equity lines and loans		48,231		52,975		8,711		44,693		48,965		8,027
Automobile		14,225		16,743		3,011		16,982		18,272		3,740
Other		3,176		5,633		650		3,791		5,296		776
		472,199		556,566		80,674		484,498		558,385		83,054
With no related allowance recorded:
Commercial, financial, leasing, etc.		80,952		97,073		—		100,805		124,786		—
Real estate:
Commercial		148,733		158,815		—		113,276		121,846		—
Residential builder and developer		1,174		1,174		—		14,368		21,124		—
Other commercial construction		17,850		37,237		—		15,933		35,281		—
Residential		17,312		23,291		—		16,823		24,161		—
Residential — limited documentation		11,091		18,480		—		15,429		24,590		—
		277,112		336,070		—		276,634		351,788		—
Total:
Commercial, financial, leasing, etc.		229,699		276,193		49,447		268,877		309,218		48,480
Real estate:
Commercial		221,877		240,059		10,200		185,138		208,512		11,620
Residential builder and developer		7,711		8,016		288		21,764		29,485		506
Other commercial construction		19,476		39,022		292		18,408		38,012		448
Residential		114,795		141,321		3,475		103,503		130,105		3,457
Residential — limited documentation		90,121		112,674		4,600		97,976		122,308		6,000
Consumer:
Home equity lines and loans		48,231		52,975		8,711		44,693		48,965		8,027
Automobile		14,225		16,743		3,011		16,982		18,272		3,740
Other		3,176		5,633		650		3,791		5,296		776
Total	$	749,311		892,636		80,674		761,132		910,173		83,054

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

	Three Months Ended September 30, 2017						Three Months Ended September 30, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)
Commercial, financial, leasing, etc.	$	224,526		391		391		262,796		744		744
Real estate:
Commercial		233,572		1,425		1,425		175,256		1,806		1,806
Residential builder and developer		8,550		895		895		26,996		405		405
Other commercial construction		16,578		25		25		21,500		190		190
Residential		113,892		1,903		905		96,961		1,572		570
Residential — limited documentation		91,974		1,624		569		101,877		1,501		378
Consumer:
Home equity lines and loans		47,831		419		99		41,740		368		112
Automobile		14,588		251		22		18,571		303		19
Other		3,269		80		2		4,077		72		11
Total	$	754,780		7,013		4,333		749,774		6,961		4,235

	Nine Months Ended September 30, 2017						Nine Months Ended September 30, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)
Commercial, financial, leasing, etc.	$	242,410		1,674		1,674		283,783		7,055		7,055
Real estate:
Commercial		205,814		3,213		3,213		177,579		3,891		3,891
Residential builder and developer		14,551		1,791		1,791		30,832		488		488
Other commercial construction		15,474		958		958		19,774		563		563
Residential		108,741		5,004		2,285		97,229		4,778		2,591
Residential — limited documentation		94,680		4,573		1,292		104,382		4,580		1,648
Consumer:
Home equity lines and loans		46,829		1,240		290		33,998		937		295
Automobile		15,483		788		62		20,358		964		83
Other		3,430		227		8		10,987		371		74
Total	$	747,412		19,468		11,573		778,922		23,627		16,688

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

In accordance with the previously described policies, the Company utilizes a loan grading system that is applied to all commercial loans and commercial real estate loans.  Loan grades are utilized to differentiate risk within the portfolio and consider the expectations of default for each loan.  Commercial loans and commercial real estate loans with a lower expectation of default are assigned one of ten possible “pass” loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses.  Loans with an elevated level of credit risk are classified as “criticized” and are ascribed a higher loss factor when determining the allowance for credit losses.  Criticized loans may be classified as “nonaccrual” if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more.  All larger- balance criticized commercial loans and commercial real estate loans are individually reviewed by centralized credit 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,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(In thousands)
September 30, 2017
Pass	$	20,561,077		24,309,923		1,580,763		5,830,122
Criticized accrual		978,178		718,126		64,644		188,838
Criticized nonaccrual		203,996		200,193		2,416		19,263
Total	$	21,743,251		25,228,242		1,647,823		6,038,223
December 31, 2016
Pass	$	21,398,581		24,570,269		1,789,071		5,912,351
Criticized accrual		950,032		741,274		116,548		165,862
Criticized nonaccrual		261,434		176,201		16,707		18,111
Total	$	22,610,047		25,487,744		1,922,326		6,096,324

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

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. However, residential real estate loans and outstanding balances of home equity loans and lines of credit that are more than 150 days past due are generally evaluated for collectability 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 totaled $39 million and $27 million, respectively, at September 30, 2017 and $44 million and $32 million, respectively, at December 31, 2016. 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 were $19 million and $33 million, respectively, at September 30, 2017 and $16 million and $39 million, respectively, at December 31, 2016.

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.

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

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

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
September 30, 2017
Individually evaluated for impairment	$	49,447		10,780		8,075		12,372	$	80,674
Collectively evaluated for impairment		287,027		353,387		47,674		157,006		845,094
Purchased impaired		—		—		9,346		—		9,346
Allocated	$	336,474		364,167		65,095		169,378		935,114
Unallocated										78,212
Total									$	1,013,326
December 31, 2016
Individually evaluated for impairment	$	48,480		12,500		9,457		12,543	$	82,980
Collectively evaluated for impairment		282,353		348,301		47,993		143,745		822,392
Purchased impaired		—		1,918		3,677		—		5,595
Allocated	$	330,833		362,719		61,127		156,288		910,967
Unallocated										78,030
Total									$	988,997

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

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
September 30, 2017
Individually evaluated for impairment	$	229,699		249,064		204,916		65,632	$	749,311
Collectively evaluated  for impairment		21,513,477		32,620,026		19,638,576		12,936,801		86,708,880
Purchased impaired		75		45,198		421,670		—		466,943
Total	$	21,743,251		32,914,288		20,265,162		13,002,433	$	87,925,134
December 31, 2016
Individually evaluated for impairment	$	268,877		224,630		201,479		65,466	$	760,452
Collectively evaluated for impairment		22,340,529		33,222,080		21,871,726		12,080,597		89,514,932
Purchased impaired		641		59,684		517,707		—		578,032
Total	$	22,610,047		33,506,394		22,590,912		12,146,063	$	90,853,416

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.

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

The tables that follow summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three-month and nine-month periods ended September 30, 2017 and 2016:

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Three Months Ended September 30, 2017	(Dollars in thousands)
Commercial, financial, leasing, etc.		49	$	15,812	$	5,888	$	97	$	9,251	$	15,236
Real estate:
Commercial		17		5,861		1,420		868		3,450		5,738
Residential		34		5,123		3,033		—		2,716		5,749
Residential — limited documentation		4		515		383		—		167		550
Consumer:
Home equity lines and loans		25		2,154		461		—		1,776		2,237
Automobile		17		342		326		—		16		342
Other		1		5		5		—		—		5
Total		147	$	29,812	$	11,516	$	965	$	17,376	$	29,857
Three Months Ended September 30, 2016
Commercial, financial, leasing, etc.		43	$	69,486	$	40,183	$	—	$	19,802	$	59,985
Real estate:
Commercial		18		14,925		11,644		—		2,614		14,258
Residential		30		5,638		4,714		—		1,214		5,928
Residential — limited documentation		6		827		470		—		493		963
Consumer:
Home equity lines and loans		26		2,552		251		—		2,301		2,552
Automobile		10		186		186		—		—		186
Other		1		26		26		—		—		26
Total		134	$	93,640	$	57,474	$	—	$	26,424	$	83,898

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

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Nine Months Ended September 30, 2017	(Dollars in thousands)
Commercial, financial, leasing, etc.		162	$	93,346	$	18,449	$	6,459	$	47,211	$	72,119
Real estate:
Commercial		67		38,608		16,193		868		21,332		38,393
Residential builder and developer		3		12,291		—		—		10,879		10,879
Other commercial construction		2		168		168		—		—		168
Residential		105		22,459		11,608		—		12,557		24,165
Residential — limited documentation		17		3,724		618		—		3,352		3,970
Consumer:
Home equity lines and loans		85		7,885		1,040		491		6,442		7,973
Automobile		59		1,160		1,089		—		71		1,160
Other		6		85		85		—		—		85
Total		506	$	179,726	$	49,250	$	7,818	$	101,844	$	158,912
Nine Months Ended September 30, 2016
Commercial, financial, leasing, etc.		112	$	148,204	$	98,561	$	—	$	39,971	$	138,532
Real estate:
Commercial		55		36,984		17,802		4,576		13,546		35,924
Residential builder and developer		3		23,905		22,958		—		—		22,958
Other commercial construction		2		374		250		—		124		374
Residential		73		11,946		7,945		—		4,705		12,650
Residential — limited documentation		14		2,415		803		—		1,872		2,675
Consumer:
Home equity lines and loans		84		9,189		655		—		8,534		9,189
Automobile		148		1,005		865		55		85		1,005
Other		78		1,192		951		45		196		1,192
Total		569	$	235,214	$	150,790	$	4,676	$	69,033	$	224,499

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.  The present value of interest rate concessions, discounted at the effective rate of the original loan, was not material.

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 September 30, 2017 and 2016 and for which there was a subsequent payment default during the nine-month periods ended September 30, 2017 and 2016, respectively, were not material.

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

The amount of foreclosed residential real estate property held by the Company totaled $106 million and $129 million at September 30, 2017 and December 31, 2016, respectively.  There were $545 million and $506 million at September 30, 2017 and December 31, 2016, respectively, in loans secured by residential real estate that were in the process of foreclosure. Of all loans in the process of foreclosure at September 30, 2017, approximately 48% were classified as purchased impaired and 20% were government guaranteed.

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Borrowings

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Borrowings

5. Borrowings

During May 2017, M&T Bank, the principal bank subsidiary of M&T, issued $900 million of senior notes that mature in May 2022 pursuant to a Bank Note Program, of which $650 million have a 2.50% fixed interest rate and $250 million have a variable rate paid quarterly at rates that are indexed to the three-month London Interbank Offered Rate (“LIBOR”).  During June 2017, M&T Bank redeemed $750 million of 1.40% fixed rate senior notes.  The notes had a maturity date of July 25, 2017 and were redeemable on or after the 30^th day prior to the maturity date.  During August 2017, M&T Bank issued $750 million of three-year 2.05% fixed rate senior notes due August 2020 and $500 million of ten-year 3.40% fixed rate subordinated notes due August 2027.

M&T had $519 million of fixed and variable rate junior subordinated deferrable interest debentures ("Junior Subordinated Debentures") outstanding at September 30, 2017 that are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities ("Capital Securities") and common securities ("Common Securities").  The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures.  The Common Securities of each of those trusts are wholly owned by M&T and are the only class of each trust's securities possessing general voting powers.  The Capital Securities represent preferred undivided interests in the assets of the corresponding trust. Under the Federal Reserve Board’s risk-based capital guidelines, the securities are includable in M&T’s Tier 2 regulatory capital.

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

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

5. Borrowings, continued

Also included in long-term borrowings are agreements to repurchase securities of $425 million and $1.1 billion at September 30, 2017 and December 31, 2016, respectively.  The agreements reflect various repurchase dates through 2020, however, the contractual maturities of the underlying investment securities extend beyond such repurchase dates.  The agreements are subject to legally enforceable master netting arrangements, however, the Company has not offset any amounts related to these agreements in its consolidated financial statements.  The Company posted collateral consisting primarily of government guaranteed mortgage-backed securities of $445 million and $1.1 billion at September 30, 2017 and December 31, 2016, respectively.

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Shareholders' equity

9 Months Ended

Sep. 30, 2017

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 September 30, 2017 and December 31, 2016 is presented below:

	Shares Issued and Outstanding		Carrying Value
	(Dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, $1,000     liquidation preference per share		230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, $1,000     liquidation preference per share		151,500	$	151,500
Series E (b)
Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock,     $1,000 liquidation preference per share		350,000	$	350,000
Series F (c)
Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock,     $10,000 liquidation preference per share		50,000	$	500,000

(a) Dividends, if declared, are paid at 6.375%.  Warrants to purchase M&T common stock at $73.79 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 327,358 at September 30, 2017.

(b) 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 LIBOR plus 361 basis points (hundredths of one percent).  The shares are redeemable in whole or in part on or after February 15, 2024.  Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are paid semi-annually at a rate of 5.125% through October 31, 2026 and thereafter will be paid quarterly at a rate of the three-month LIBOR plus 352 basis points.  The shares are redeemable in whole or in part on or after November 1, 2026.  Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

In addition to the Series A warrants mentioned in (a) above, a warrant to purchase 95,472 shares of M&T common stock at $518.47 per share was outstanding at September 30, 2017.  The obligation under that warrant was assumed by M&T in an acquisition and expires in 2018.

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Pension plans and other postretirement benefits

9 Months Ended

Sep. 30, 2017

Compensation And Retirement Disclosure [Abstract]

Pension plans and other postretirement benefits

7. Pension plans and other postretirement benefits

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

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended September 30
	2017			2016			2017			2016
	(In thousands)
Service cost	$	5,048			6,259			293		399
Interest cost on projected benefit obligation		19,818			20,853			929			1,242
Expected return on plan assets		(27,131	)		(27,118	)		—			—
Amortization of prior service cost (credit)		139			(807	)		(340	)		(339	)
Amortization of net actuarial loss (gain)		7,316			7,536			(247	)		15
Net periodic benefit cost	$	5,190			6,723			635			1,317

	Pension Benefits						Other Postretirement Benefits
	Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands)
Service cost	$	15,145			18,778			878			1,197
Interest cost on projected benefit obligation		59,452			62,558			2,787			3,728
Expected return on plan assets		(81,393	)		(81,355	)		—			—
Amortization of prior service cost (credit)		418			(2,421	)		(1,019	)		(1,019	)
Amortization of net actuarial loss (gain)		21,947			22,609			(741	)		45
Net periodic benefit cost	$	15,569			20,169			1,905			3,951

Expense incurred in connection with the Company's defined contribution pension and retirement savings plans totaled $16,085,000 and $14,783,000 for the three months ended September 30, 2017 and 2016, respectively, and $53,127,000 and $47,747,000 for the nine months ended September 30, 2017 and 2016, respectively.

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Earnings per common share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings per common share

8. Earnings per common share

The computations of basic earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands, except per share)
Income available to common shareholders:
Net income	$	355,923			349,984			1,085,903			984,543
Less: Preferred stock dividends (a)		(18,130	)		(20,318	)		(54,604	)		(60,953	)
Net income available to common equity		337,793			329,666			1,031,299			923,590
Less: Income attributable to unvested stock-based    compensation awards		(1,992	)		(2,674	)		(6,288	)		(7,920	)
Net income available to common shareholders	$	335,801			326,992			1,025,011			915,670
Weighted-average shares outstanding:
Common shares outstanding (including common stock    issuable) and unvested stock-based compensation awards		152,245			156,767			153,814			158,710
Less: Unvested stock-based compensation awards		(898	)		(1,274	)		(948	)		(1,374	)
Weighted-average shares outstanding		151,347			155,493			152,866			157,336
Basic earnings per common share	$	2.22			2.10			6.71			5.82

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

The computations of diluted earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands, except per share)
Net income available to common equity	$	337,793			329,666			1,031,299			923,590
Less: Income attributable to unvested stock-based    compensation awards		(1,989	)		(2,668	)		(6,276	)		(7,904	)
Net income available to common shareholders	$	335,804			326,998			1,025,023			915,686
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		152,245			156,767			153,814			158,710
Less: Unvested stock-based compensation awards		(898	)		(1,274	)		(948	)		(1,374	)
Plus: Incremental shares from assumed conversion of    stock-based compensation awards and warrants to    purchase common stock		344			533			427			507
Adjusted weighted-average shares outstanding		151,691			156,026			153,293			157,843
Diluted earnings per common share	$	2.21			2.10			6.69			5.80

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 408,657 and 2,015,870 common shares during the three-month periods ended September 30, 2017 and 2016, respectively, and 404,487 and 2,513,288 common shares during the nine-month periods ended September 30, 2017 and 2016, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

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Comprehensive income

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Comprehensive income

9. Comprehensive income

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

	Investment Securities						Defined Benefit						Total Amount				Income
	With OTTI (a)			All Other			Plans			Other			Before Tax				Tax			Net
	(In thousands)
Balance — January 1, 2017	$	46,725			(73,785	)		(449,917	)		(8,268	)	$	(485,245	)			190,609		$	(294,636	)
Other comprehensive income before reclassifications:
Unrealized holding gains (losses), net		(7,365	)		60,586			—			—			53,221				(20,934	)		32,287
Foreign currency translation adjustment		—			—			—			3,829			3,829				(1,340	)		2,489
Unrealized losses on cash flow hedges		—			—			—			(1,076	)		(1,076	)			424			(652	)
Total other comprehensive income (loss) before    reclassifications		(7,365	)		60,586			—			2,753			55,974				(21,850	)		34,124
Amounts reclassified from accumulated other    comprehensive income that (increase) decrease    net income:
Amortization of unrealized holding losses on    held-to-maturity (“HTM”) securities		—			2,535			—			—			2,535		(b)		(998	)		1,537
(Gains) losses realized in net income		(50	)		67			—			—			17		(c)		(7	)		10
Accretion of net gain on terminated cash flow    hedges		—			—			—			(109	)		(109	)	(d)		43			(66	)
Net yield adjustment from cash flow hedges currently in    effect		—			—			—			(2,275	)		(2,275	)	(b)		895			(1,380	)
Amortization of prior service credit		—			—			(601	)		—			(601	)	(e)		236			(365	)
Amortization of actuarial losses		—			—			21,206			—			21,206		(e)		(8,345	)		12,861
Total reclassifications		(50	)		2,602			20,605			(2,384	)		20,773				(8,176	)		12,597
Total gain (loss) during the period		(7,415	)		63,188			20,605			369			76,747				(30,026	)		46,721
Balance — September 30, 2017	$	39,310			(10,597	)		(429,312	)		(7,899	)	$	(408,498	)			160,583		$	(247,915	)
Balance — January 1, 2016	$	16,359			62,849			(489,660	)		(4,093	)	$	(414,545	)			162,918		$	(251,627	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		1,228			234,438			—			—			235,666				(92,714	)		142,952
Foreign currency translation adjustment		—			—			—			(2,836	)		(2,836	)			989			(1,847	)
Total other comprehensive income (loss) before    reclassifications		1,228			234,438			—			(2,836	)		232,830				(91,725	)		141,105
Amounts reclassified from accumulated other    comprehensive income that (increase) decrease    net income:
Amortization of unrealized holding losses on    HTM securities		—			2,998			—			—			2,998		(b)		(1,180	)		1,818
Gains realized in net income		—			(28,748	)		—			—			(28,748	)	(c)		11,309			(17,439	)
Accretion of net gain on terminated cash flow    hedges		—			—			—			(116	)		(116	)	(d)		46			(70	)
Amortization of prior service credit		—			—			(3,440	)		—			(3,440	)	(e)		1,354			(2,086	)
Amortization of actuarial losses		—			—			22,654			—			22,654		(e)		(8,914	)		13,740
Total reclassifications		—			(25,750	)		19,214			(116	)		(6,652	)			2,615			(4,037	)
Total gain (loss) during the period		1,228			208,688			19,214			(2,952	)		226,178				(89,110	)		137,068
Balance — September 30, 2016	$	17,587			271,537			(470,446	)		(7,045	)	$	(188,367	)			73,808		$	(114,559	)

(a) Other-than-temporary impairment

(b) Included in interest income

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

(d) Included in interest expense

(e) Included in salaries and employee benefits expense

9. Comprehensive income, continued

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, 2016	$	28,338			(44,657	)		(272,874	)		(5,443	)	$	(294,636	)
Net gain (loss) during period		(4,496	)		38,330			12,496			391			46,721
Balance — September 30, 2017	$	23,842			(6,327	)		(260,378	)		(5,052	)	$	(247,915	)

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Derivative financial instruments

9 Months Ended

Sep. 30, 2017

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, collateral and/or settlement provisions protecting the at-risk party. Based on adherence to the Company’s credit standards and the presence of the netting, collateral or settlement provisions, the Company believes that the credit risk inherent in these contracts was not significant as of September 30, 2017.

The net effect of interest rate swap agreements was to increase net interest income by $7 million and $9 million for the three-month periods ended September 30, 2017 and 2016, respectively, and $18 million and $30 million for the nine-month periods ended September 30, 2017 and 2016, respectively.

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:

					Weighted- Average Rate
	Notional Amount		Average Maturity		Fixed			Variable			Estimated Fair Value Gain (a)
	(Inthousands)		(In years)								(In thousands)
September 30, 2017
Fair value hedges:
Fixed rate long-term borrowings (b)	$	4,950,000		2.9		2.63	%		2.04	%	$	697
Cash flow hedges:
Variable rate commercial real estate loans (b)		2,000,000		1.6		1.46	%		1.24	%		—
Total	$	6,950,000		2.5							$	697
December 31, 2016
Fair value hedges:
Fixed rate long-term borrowings (b)	$	900,000		1.1		3.75	%		2.08	%	$	11,892

(a) Effective January 2017 certain clearinghouse exchanges revised their rules such that certain required payments by counterparties for variation margin on derivative instruments that had been treated as collateral are now treated as settlements of those positions.   The impact of such rule changes at September 30, 2017 was a reduction of the estimated fair value losses on interest rate swaps designated as fair value hedges of $12.2 million and on interest rate swaps designated as cash flow hedges of $3.4 million.

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

10. Derivative financial instruments, continued

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 $15.5 billion and $21.6 billion at September 30, 2017 and December 31, 2016, respectively.  The notional amounts of foreign currency and other option and futures contracts entered into for trading account purposes aggregated $545 million and $471 million at September 30, 2017 and December 31, 2016, 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
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(In thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	2,048	$	11,892	$	1,351	$	—
Commitments to sell real estate loans (a)		1,667		33,189		1,551		1,347
Cash flow hedges:
Interest rate swap agreements (a)		—		—		—		—
		3,715		45,081		2,902		1,347
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		13,962		8,060		240		735
Commitments to sell real estate loans (a)		3,153		5,210		936		399
Trading:
Interest rate contracts (b)		104,178		228,810		103,825		167,737
Foreign exchange and other option and futures contracts (b)		6,823		7,908		5,905		6,639
		128,116		249,988		110,906		175,510
Total derivatives	$	131,831	$	295,069	$	113,808	$	176,857

(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.  The impact of the variation margin rule change at September 30, 2017 was a reduction of the estimated fair value of interest rate swaps in an asset position of $89.3 million and of those in a liability position of $29.2 million.

10. Derivative financial instruments, continued

	Amount of Gain (Loss) Recognized
	Three Months Ended September 30, 2017					Three Months Ended September 30, 2016
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(13,509	)		14,026	$	(12,588	)		12,587
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	(418	)			$	4,822
Foreign exchange and other option and futures contracts (b)		1,362					1,746
Total	$	944				$	6,568

	Amount of Gain (Loss) Recognized
	Nine Months Ended September 30, 2017					Nine Months Ended September 30, 2016
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(23,423	)		23,049	$	(22,832	)		21,603
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	2,363				$	11,578
Foreign exchange and other option and futures contracts (b)		4,766					5,415
Total	$	7,129				$	16,993

(a) Reported as other revenues from operations.

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

The amount of gain (loss) recognized in the consolidated statement of income associated with derivatives designated as cash flow hedges was not material for the three and nine months ended September 30, 2017.

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 $27 million and $28 million at September 30, 2017 and December 31, 2016, 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 or settlement 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.

10. Derivative financial instruments, continued

The aggregate fair value of derivative financial instruments in a liability position which are subject to enforceable master netting arrangements was $17 million and $34 million at September 30, 2017 and December 31, 2016, respectively.  After consideration of such netting arrangements for purposes of posting collateral, the net liability positions with counterparties aggregated $17 million and $30 million at September 30, 2017 and December 31, 2016, respectively.  The Company was required to post collateral relating to those positions of $18 million and $27 million at September 30, 2017 and December 31, 2016, 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 September 30, 2017 was less than $1 million, for which the Company was not required to post collateral in the normal course of business.  If the credit risk-related contingent features had been triggered on September 30, 2017, the Company would not have been required to post any collateral to counterparties.

The aggregate fair value of derivative financial instruments in an asset position, which are subject to enforceable master netting arrangements, was $7 million and $15 million at September 30, 2017 and December 31, 2016, respectively.  After consideration of such netting arrangements for purposes of posting collateral, the net asset positions with counterparties aggregated $7 million and $11 million at September 30, 2017 and December 31, 2016, respectively.  Counterparties posted collateral relating to those positions of $5 million and $9 million at September 30, 2017 and December 31, 2016, 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 variation margin payments depending on the contracts being in a net asset or liability position. The amount of initial margin collateral posted by the Company was $49 million and $111 million at September 30, 2017 and December 31, 2016, respectively.  The fair value asset and liability amounts of derivative contracts at September 30, 2017 have been reduced by variation margin payments treated as settlements of $89 million and $45 million, respectively.  Variation margin on derivative contracts not treated as settlements continues to represent collateral posted or received by the Company.  For those contracts, the net fair values of derivative financial instruments cleared through clearinghouses for which variation margin is required was a net asset position of $1 million and $63 million at September 30, 2017 and December 31, 2016, respectively. Collateral posted by the clearinghouses associated with that net asset position was $1 million and $81 million at September 30, 2017 and December 31, 2016, respectively.

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Variable interest entities and asset securitizations

9 Months Ended

Sep. 30, 2017

Text Block [Abstract]

Variable interest entities and asset securitizations

11. Variable interest entities and asset securitizations

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 September 30, 2017 and December 31, 2016, the Company included the junior subordinated debentures as “long-term borrowings” in its consolidated balance sheet and recognized $24 million in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 5.

11. Variable interest entities and asset securitizations, continued

The Company has invested as a limited partner in various partnerships that collectively had total assets of approximately $1.0 billion at September 30, 2017 and December 31, 2016. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $329 million, including $118 million of unfunded commitments, at September 30, 2017 and $294 million, including $102 million of unfunded commitments, at December 31, 2016.  Contingent commitments to provide additional capital contributions to these partnerships were not material at September 30, 2017. The Company has not provided financial or other support to the partnerships that was not contractually required.  Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities.  The Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and, therefore, in accordance with the accounting provisions for variable interest entities, the partnership entities are not included in the Company’s consolidated financial statements.  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 $11 million and $35 million of its investments in qualified affordable housing projects to income tax expense during the three-month and nine-month periods ended September 30, 2017, respectively, and recognized $16 million and $47 million of tax credits and other tax benefits during those respective periods. Similarly, for the three-month and nine-month periods ended September 30, 2016, the Company amortized $13 million and $34 million, respectively, of its investments in qualified affordable housing projects to income tax expense and recognized $18 million and $46 million of tax credits and other tax benefits during those respective periods.

The Company serves as investment advisor for certain registered money-market funds.  The Company has no explicit arrangement to provide support to those funds, but may waive portions of its allowable management fees as a result of market conditions.

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Fair value measurements

9 Months Ended

Sep. 30, 2017

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 September 30, 2017.

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

12. Fair value measurements, continued

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 and other 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.

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

12. Fair value measurements, continued

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 September 30, 2017 and December 31, 2016 measured at estimated fair value on a recurring basis:

	Fair Value Measurements		Level 1 (a)		Level 2 (a)		Level 3
	(In thousands)
September 30, 2017
Trading account assets	$	170,516		47,927		122,589		—
Investment securities available for sale:
U.S. Treasury and federal agencies		2,007,117		—		2,007,117		—
Obligations of states and political subdivisions		2,678		—		2,678		—
Mortgage-backed securities:
Government issued or guaranteed		9,184,483		—		9,184,483		—
Privately issued		30		—		—		30
Other debt securities		128,530		—		128,530		—
Equity securities		93,986		50,917		43,069		—
		11,416,824		50,917		11,365,877		30
Real estate loans held for sale		571,199		—		571,199		—
Other assets (b)		20,830		—		6,868		13,962
Total assets	$	12,179,369		98,844		12,066,533		13,992
Trading account liabilities	$	109,730		—		109,730		—
Other liabilities (b)		4,078		—		3,838		240
Total liabilities	$	113,808		—		113,568		240
December 31, 2016
Trading account assets	$	323,867		46,135		277,732		—
Investment securities available for sale:
U.S. Treasury and federal agencies		1,902,544		—		1,902,544		—
Obligations of states and political subdivisions		3,641		—		3,641		—
Mortgage-backed securities:
Government issued or guaranteed		10,954,861		—		10,954,861		—
Privately issued		44		—		—		44
Other debt securities		118,516		—		118,516		—
Equity securities		352,466		301,711		50,755		—
		13,332,072		301,711		13,030,317		44
Real estate loans held for sale		1,056,180		—		1,056,180		—
Other assets (b)		58,351		—		50,291		8,060
Total assets	$	14,770,470		347,846		14,414,520		8,104
Trading account liabilities	$	174,376		—		174,376		—
Other liabilities (b)		2,481		—		1,746		735
Total liabilities	$	176,857		—		176,122		735

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2017 and the year ended December 31, 2016.                                        

(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).

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 September 30, 2017 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities			Other Assets and Other Liabilities
	(In thousands)
Balance — June 30, 2017	$	35			12,425
Total gains (losses) realized/unrealized:
Included in earnings		—			22,313		(b)
Settlements		(5	)		—
Transfers in and/or out of Level 3 (a)		—			(21,016	)	(d)
Balance — September 30, 2017	$	30			13,722
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2017	$	—			12,659		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2016 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-BackedSecurities			Collateralized DebtObligations				OtherAssetsand OtherLiabilities
	(In thousands)
Balance — June 30, 2016	$	57			43,305				21,383
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				45,534		(b)
Included in other comprehensive income		—			(15,050	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(6	)		—				—
Transfers in and/or out of Level 3 (a)		—			—				(37,117	)	(d)
Balance — September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2016	$	—			—				27,663		(b)

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2017 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities			Other Assets and Other Liabilities
	(In thousands)
Balance — January 1, 2017	$	44			7,325
Total gains (losses) realized/unrealized:
Included in earnings		—			65,824		(b)
Settlements		(14	)		—
Transfers in and/or out of Level 3 (a)		—			(59,427	)	(d)
Balance — September 30, 2017	$	30		$	13,722
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2017	$	—		$	13,684		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2016 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-BackedSecurities			CollateralizedDebt Obligations				Other Assetsand OtherLiabilities
				(In thousands)
Balance — January 1, 2016	$	74			47,393				9,879
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				104,862		(b)
Included in other comprehensive income		—			(18,268	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(23	)		(870	)			—
Transfers in and/or out of Level 3 (a)		—			—				(84,941	)	(d)
Balance — September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings    related to assets still held at    September 30, 2016	$	—			—				29,288		(b)

(a) 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.

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

(c) Reported as net unrealized losses on investment securities in the consolidated statement of comprehensive income.  The Company sold its collateralized debt obligations during the third and fourth quarters of 2016.

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

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 15% to 90% at September 30, 2017.  As these discounts are not readily observable and are considered significant, the valuations have been classified as Level 3.  Automobile collateral is typically valued by reference to independent pricing sources based on recent sales transactions of similar vehicles, and the related nonrecurring fair value measurement adjustments have been classified as Level 2.  Collateral values for other consumer installment loans are generally estimated based on historical recovery rates for similar types of loans.  As these recovery rates are not readily observable by market participants, such valuation adjustments have been classified as Level 3.  Loans subject to nonrecurring fair value measurement were $184 million at September 30, 2017 ($105 million and $79 million of which were classified as Level 2 and Level 3, respectively), $293 million at December 31, 2016 ($153 million and $140 million of which were classified as Level 2 and Level 3, respectively) and $249 million at September 30, 2016 ($144 million and $105 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 September 30, 2017 were decreases of $16 million and $55 million for the three-month and nine-month periods ended September 30, 2017, respectively.  Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2016 were decreases of $20 million and $42 million for the three-month and nine-month periods ended September 30, 2016, 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 $36 million and $53 million at September 30, 2017 and 2016, respectively.  Changes in fair value recognized for those foreclosed assets held by the Company were not material during the three-month and nine-month periods ended September 30, 2017 and 2016.

12. Fair value measurements, continued

Significant unobservable inputs to Level 3 measurements

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at September 30, 2017 and December 31, 2016:

	Fair Value		Valuation Technique	Unobservable Inputs/Assumptions		Range (Weighted- Average)
	(In thousands)
September 30, 2017
Recurring fair value measurements
Privately issued mortgage-backed    securities	$	30	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		13,722	Discountedcashflow	Commitment expirations		0%-80% (28%)
December 31, 2016
Recurring fair value measurements
Privately issued mortgage-backed    securities	$	44	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		7,325	Discountedcashflow	Commitment expirations		0%-77% (30%)

(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 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.

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:

	September 30, 2017
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,368,252			1,368,252			1,290,532		77,720			—
Interest-bearing deposits at banks		6,306,484			6,306,484			—		6,306,484			—
Trading account assets		170,516			170,516			47,927		122,589			—
Investment securities		15,073,926			15,079,756			50,917		14,916,360			112,479
Loans and leases:
Commercial loans and leases		21,743,251			21,409,984			—		—			21,409,984
Commercial real estate loans		32,914,288			32,507,319			—		223,659			32,283,660
Residential real estate loans		20,265,162			20,369,392			—		4,557,929			15,811,463
Consumer loans		13,002,433			12,935,924			—		—			12,935,924
Allowance for credit losses		(1,013,326	)		—			—		—			—
Loans and leases, net		86,911,808			87,222,619			—		4,781,588			82,441,031
Accrued interest receivable		325,982			325,982			—		325,982			—
Financial liabilities:
Noninterest-bearing deposits	$	(33,111,246	)		(33,111,246	)		—		(33,111,246	)		—
Savings and interest-checking deposits		(52,936,615	)		(52,936,615	)		—		(52,936,615	)		—
Time deposits		(7,233,518	)		(7,294,182	)		—		(7,294,182	)		—
Deposits at Cayman Islands office		(232,014	)		(232,014	)		—		(232,014	)		—
Short-term borrowings		(200,768	)		(200,768	)		—		(200,768	)		—
Long-term borrowings		(8,577,645	)		(8,630,195	)		—		(8,630,195	)		—
Accrued interest payable		(69,290	)		(69,290	)		—		(69,290	)		—
Trading account liabilities		(109,730	)		(109,730	)		—		(109,730	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	13,722			13,722			—		—			13,722
Commitments to sell real estate loans		2,333			2,333			—		2,333			—
Other credit-related commitments		(119,938	)		(119,938	)		—		—			(119,938	)
Interest rate swap agreements used for interest    rate risk management		697			697			—		697			—

12. Fair value measurements, continued

	December 31, 2016
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
				(In thousands)
Financial assets:
Cash and cash equivalents	$	1,320,549			1,320,549			1,249,654		70,895		—
Interest-bearing deposits at banks		5,000,638			5,000,638			—		5,000,638		—
Trading account assets		323,867			323,867			46,135		277,732		—
Investment securities		16,250,468			16,244,412			301,711		15,821,176			121,525
Loans and leases:
Commercial loans and leases		22,610,047			22,239,428		—		—				22,239,428
Commercial real estate loans		33,506,394			33,129,428		—			642,590			32,486,838
Residential real estate loans		22,590,912			22,638,167		—			4,912,488			17,725,679
Consumer loans		12,146,063			12,061,590		—			—			12,061,590
Allowance for credit losses		(988,997	)		—		—			—			—
Loans and leases, net		89,864,419			90,068,613		—			5,555,078			84,513,535
Accrued interest receivable		308,805			308,805		—			308,805		—
Financial liabilities:
Noninterest-bearing deposits	$	(32,813,896	)		(32,813,896	)	—			(32,813,896	)	—
Savings and interest-checking deposits		(52,346,207	)		(52,346,207	)	—			(52,346,207	)	—
Time deposits		(10,131,846	)		(10,222,585	)	—			(10,222,585	)	—
Deposits at Cayman Islands office		(201,927	)		(201,927	)	—			(201,927	)	—
Short-term borrowings		(163,442	)		(163,442	)	—			(163,442	)	—
Long-term borrowings		(9,493,835	)		(9,473,844	)	—			(9,473,844	)	—
Accrued interest payable		(75,172	)		(75,172	)	—			(75,172	)	—
Trading account liabilities		(174,376	)		(174,376	)	—			(174,376	)	—
Other financial instruments:
Commitments to originate real estate loans for sale	$	7,325			7,325		—			—			7,325
Commitments to sell real estate loans		36,653			36,653		—			36,653		—
Other credit-related commitments		(136,295	)		(136,295	)	—			—			(136,295	)
Interest rate swap agreements used for interest    rate risk management		11,892			11,892		—			11,892		—

With the exception of marketable securities, certain off-balance sheet financial instruments and mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. The following assumptions, methods and calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

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

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

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 interest-checking deposits 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.

12. Fair value measurements, continued

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities. Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.

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Commitments and contingencies

9 Months Ended

Sep. 30, 2017

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.

	September 30,		December 31,
	2017		2016
	(In thousands)
Commitments to extend credit
Home equity lines of credit	$	5,492,892		5,499,609
Commercial real estate loans to be sold		170,786		70,100
Other commercial real estate		5,749,428		6,451,709
Residential real estate loans to be sold		482,650		478,950
Other residential real estate		202,702		232,721
Commercial and other		12,677,838		12,298,473
Standby letters of credit		2,657,352		2,987,091
Commercial letters of credit		42,684		44,723
Financial guarantees and indemnification contracts		3,385,498		3,043,580
Commitments to sell real estate loans		1,052,472		1,489,237

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 $3.2 billion and $2.8 billion at September 30, 2017 and December 31, 2016, respectively.

13. Commitments and contingencies, continued

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 September 30, 2017 the Company believes that its obligation to loan purchasers was 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 and other matters 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 proceedings.  For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements.  To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable.  Although not considered probable, the range of reasonably possible losses for such matters in the aggregate, beyond the existing recorded liability, was between $0 and $50 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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Segment information

9 Months Ended

Sep. 30, 2017

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 of Notes to Financial Statements in the 2016 Annual Report.  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.  As disclosed in the 2016 Annual Report, during 2016 the Company revised its funds transfer pricing allocation related to borrowings.  Additionally, during the second quarter of 2017, the Company revised its funds transfer pricing allocation related to certain deposit categories.  As a result, prior period

14. Segment information, continued

financial information has been reclassified to provide segment information on a comparable basis, as noted in the following tables.

	Three Months Ended September 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	116,513		4,388			120,901	$	21,422			2,602			24,024
Commercial Banking		268,683		(155	)		268,528		102,796			(92	)		102,704
Commercial Real Estate		205,562		—			205,562		90,065			—			90,065
Discretionary Portfolio		114,391		(8,806	)		105,585		50,773			(5,222	)		45,551
Residential Mortgage Banking		108,576		(11,901	)		96,675		22,924			(7,059	)		15,865
Retail Banking		353,016		8,848			361,864		69,506			5,247			74,753
All Other		182,949		7,626			190,575		(7,502	)		4,524			(2,978	)
Total	$	1,349,690		—			1,349,690	$	349,984			—			349,984
	Nine Months Ended September 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	344,562		13,022			357,584	$	69,617			7,723			77,340
Commercial Banking		787,781		(423	)		787,358		309,515			(251	)		309,264
Commercial Real Estate		575,117		—			575,117		254,682			—			254,682
Discretionary Portfolio		324,195		(28,575	)		295,620		151,522			(16,947	)		134,575
Residential Mortgage Banking		309,393		(28,539	)		280,854		59,981			(16,926	)		43,055
Retail Banking		1,037,727		25,196			1,062,923		204,291			14,943			219,234
All Other		575,885		19,319			595,204		(65,065	)		11,458			(53,607	)
Total	$	3,954,660		—			3,954,660	$	984,543			—			984,543

As also described in note 22 in the 2016 Annual Report, 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.

14. Segment information, continued

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

	Three Months Ended September 30
	2017								2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	130,501		919			31,408		$	120,901		1,086			24,024
Commercial Banking		267,822		840			109,797			268,528		950			102,704
Commercial Real Estate		212,014		401			97,295			205,562		463			90,065
Discretionary Portfolio		65,808		(12,346	)		31,515			105,585		(14,795	)		45,551
Residential Mortgage Banking		90,018		18,866			13,546			96,675		22,051			15,865
Retail Banking		392,542		2,668			96,329			361,864		3,052			74,753
All Other		257,858		(11,348	)		(23,967	)		190,575		(12,807	)		(2,978	)
Total	$	1,416,563		—			355,923		$	1,349,690		—			349,984

	Nine Months Ended September 30
	2017								2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	375,816		2,836			85,146		$	357,584		3,274			77,340
Commercial Banking		818,846		2,603			328,211			787,358		2,917			309,264
Commercial Real Estate		604,437		1,165			269,113			575,117		1,299			254,682
Discretionary Portfolio		216,798		(37,670	)		95,200			295,620		(43,726	)		134,575
Residential Mortgage Banking		264,120		55,221			37,206			280,854		62,955			43,055
Retail Banking		1,144,964		8,760			282,614			1,062,923		9,198			219,234
All Other		751,703		(32,915	)		(11,587	)		595,204		(35,917	)		(53,607	)
Total	$	4,176,684		—			1,085,903		$	3,954,660		—			984,543

14. Segment information, continued

	Average Total Assets
	Nine Months Ended September 30				Year Ended December 31
	2017		2016		2016
	(In millions)
Business Banking	$	5,596		5,442		5,456
Commercial Banking		26,699		25,363		25,592
Commercial Real Estate		22,800		20,571		21,131
Discretionary Portfolio		37,807		41,253		40,867
Residential Mortgage Banking		2,335		2,578		2,569
Retail Banking		12,519		11,739		11,840
All Other		13,317		16,951		16,885
Total	$	121,073		123,897		124,340

(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 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 $8,828,000 and $6,725,000 for the three-month periods ended September 30, 2017 and 2016, respectively, and $25,563,000 and $19,579,000 for the nine-month periods ended September 30, 2017 and 2016, 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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Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

9 Months Ended

Sep. 30, 2017

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.  That investment had no remaining carrying value at September 30, 2017 as a result of cumulative losses recognized and cash distributions received.

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 $3.2 billion and $3.5 billion at September 30, 2017 and December 31, 2016, respectively.  Revenues from those servicing rights were $4 million and $5 million for the three-month periods ended September 30, 2017 and 2016, respectively, and $13 million and $15 million for the nine-month periods ended September 30, 2017 and 2016, respectively.  The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $59.3 billion and $30.4 billion at September 30, 2017 and December 31, 2016, respectively.  Revenues earned for sub-servicing loans for Bayview Financial were $26 million and $25million for the three-month periods ended September 30, 2017 and 2016, respectively, and $74 million and $73 million for the nine-month periods ended September 30, 2017 and 2016, respectively.  In addition, the Company held $141 million and $158 million of mortgage-backed securities in its held-to-maturity portfolio at September 30, 2017 and December 31, 2016, respectively, that were securitized by Bayview Financial.  In April 2017, the Company provided a loan to Bayview Financial for $100 million at terms consistent with those offered to non-affiliated customers.  That loan was subsequently paid in full in June 2017.  Also in June 2017, a new syndicated loan facility was entered into by Bayview Financial for $750 million, of which the Company held $88 million at September 30, 2017.

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Recent accounting developments

9 Months Ended

Sep. 30, 2017

Accounting Changes And Error Corrections [Abstract]

Recent accounting developments

16. Recent accounting developments

Effective January 1, 2017, the Company adopted amended accounting guidance for share-based transactions.  The most significant aspect of the amended guidance that affects the Company requires that all excess tax benefits and tax deficiencies be recognized in income tax expense in the income statement and that such amounts be recognized in the period in which the tax deduction arises or in the period in which an expiration of an award occurs.  The adoption of this guidance resulted in an $18 million reduction of income tax expense for the three-month period ended March 31, 2017, that under previous accounting guidance would have been recognized directly in shareholders’ equity.  The amended accounting guidance did not have a significant impact on income tax expense in the three-month periods ended September 30 and June 30, 2017.

Effective January 2017, the Company also adopted amended accounting guidance for the transition to the equity method of accounting.  The amended guidance eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method has been in effect during all previous periods that the investment had been held.  Instead, the amended guidance requires the investor to adopt the equity method of accounting as of the date the investment first qualifies for such accounting.  The adoption of this guidance did not have a material effect on the Company’s consolidated financial position or results of operations.

In January 2017, the Company adopted two amendments to the accounting guidance for derivatives and hedging.  The first amendment clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met.  The second amendment clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts.  An entity performing the assessment is required to assess the embedded call (put) options solely in accordance with a four-step decision sequence and no longer has to assess whether the event that triggers the ability to exercise the option is related to interest rates or credit risks.  The adoption of this guidance did not have a material effect on the Company’s consolidated financial position or results of operations.

In August 2017, the Financial Accounting Standards Board (“FASB”) issued amended guidance expanding and clarifying hedge accounting for nonfinancial and financial risk components, aligning the recognition and presentation of the effects of the hedging instrument and hedged item in the financial statements, and simplifying the requirements for assessing effectiveness in a hedging relationship.  The guidance eliminates the concept of benchmark interest rates for cash flow hedges of interest rate risk and permits variability in cash flows attributable to the contractually specified interest rate to be designated as the hedged risk in a cash flows hedge of a variable-rate financial instrument.  For a fair value hedge of interest rate risk, the amended guidance added the Securities Industry and Financial Markets Association Municipal Swap Rate as an eligible benchmark interest rate.  The amendments also change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk by (1) for a closed portfolio of prepayable financial assets or one or more beneficial interests secured by a portfolio of prepayable financial instruments, permitting an amount that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flow (“last of layer” method) to be designated as the hedged item, (2) permitting the change in fair value of the hedged item to be measured on the basis of the benchmark interest rate component of the contractual coupon cash flows rather than the full contractual coupon cash flows, (3) permitting the hedged item in a partial-term fair value hedge to be measured by assuming the hedged item has a term that reflects only the designated cash flows being hedged, and (4) for prepayable financial instruments, permitting the consideration of only how changes in the benchmark interest rate affect a decision to settle a debt instrument before its scheduled maturity in calculating the change in fair value of the hedged item attributable to interest rate risk.  As it relates to aligning the recognition and

16. Recent accounting developments, continued

presentation of the effects of the hedging instrument and hedged item in the financial statements, the amended guidance requires (1) the entire change in fair value of the hedging instrument that is included in the assessment of hedge effectiveness to be presented in the same income statement line item that is used to present the earnings effect of the hedged item in a fair value hedge and the hedged transaction in a cash flow hedge and (2) for cash flow hedges, the entire change in fair value of the hedging instrument to be included in other comprehensive income (hedge ineffectiveness no longer will be recognized in earnings for cash flow hedges) and reclassified to earnings when the hedged forecasted transaction effects earnings.  From the perspective of simplifying the requirements for assessing effectiveness in a hedging relationship, the amendments permit (1) qualitative subsequent assessments of hedge effectiveness when the facts and circumstances related to the hedging relationship have not changed, (2) initial prospective quantitative assessments at any time after hedge designation up to the first quarterly effectiveness testing date, and (3) application of the long-haul method for assessing hedge effectiveness if the shortcut method was initially applied and is no longer appropriate. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, with early adoption permitted.  If adopted in an interim period, the effects of the adoption should be reflected as of the beginning of the fiscal year of adoption.  For cash flow hedges existing at the date of adoption, a cumulative-effect adjustment should be applied related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments.  The amended presentation and disclosure guidance is required only prospectively.  The Company is evaluating when it will adopt the amended guidance and does not expect such adoption will have a material impact on its consolidated financial statements.

In May 2017, the FASB issued amended guidance relating to which changes to the terms and conditions of a share-based payment award require an entity to apply modification accounting.  The guidance requires an entity to account for the effects of a modification unless all the following criteria are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award was modified.  If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award was modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award was modified.  The guidance is effective for annual periods; and interim periods within those annual periods beginning after December 15, 2017, and should be applied on a prospective basis to an award modified on or after the adoption date. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued amended guidance requiring the premium on callable debt securities held at a premium to be amortized to the earliest call date.  The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity.  The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018, with early adoption permitted.  If adopted in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.  The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued amended guidance requiring the service cost component of the net periodic pension cost and net periodic postretirement benefit cost to be reported in the same line item in the income statement as other compensation costs arising from services rendered by the pertinent employees during the period.  The amendments also require that the other components of net benefit costs be presented separately from the service cost

16. Recent accounting developments, continued

component.  The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017, using a retrospective transition method for the presentation of the service cost and other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement.  The amendments allow for a practical expedient that permits the use of the amounts disclosed in the Company’s pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements.  The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued amended guidance eliminating step 2 from the goodwill impairment test. Under the amendments to the guidance, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss recognized, however, should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable.  The guidance is effective for annual periods or any interim goodwill impairment tests beginning after December 15, 2019 using a prospective transition method. Early adoption is permitted. The Company does not expect the guidance will have a material impact on its consolidated financial statements, unless at some point in the future one of its reporting units were to fail step 1 of the goodwill impairment test.

In January 2017, the FASB issued amended guidance clarifying the definition of a business for purposes of evaluating whether transactions would be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a screen to determine when a set of assets and activities (collectively referred to as a “set”) is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar assets, the set is not a business. If the screen is not met, the amendments (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output, and (2) remove the evaluation of whether a market participant could replace missing elements. The guidance is effective for annual
periods and interim periods within those annual periods beginning after December 15, 2017 using a prospective  transition method. The Company does not expect the guidance to have a material impact on its consolidated financial statements.

In November 2016, the FASB issued amended guidance for the presentation of restricted cash in the statement of cash flows.  The guidance requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.  In addition, when cash, cash equivalents, and restricted cash or restricted cash equivalents are presented in more than one line item within the statement of financial position, the line items and amounts must be presented on the face of the statement of cash flows or disclosed in the notes to the financial statements.  Information about the nature of restrictions on an entity’s cash and cash equivalents must also be disclosed.  The guidance, which applies only to the consolidated statement of cash flows, is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017, using a retrospective transition method. 

16. Recent accounting developments, continued

In August 2016, the FASB issued amended guidance for how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The guidance addresses the following eight specific cash flow issues: (1) cash payments for debt extinguishment costs should be classified as cash outflows for financing activities; (2) for zero-coupon debt instruments, the portion of the cash payment attributable to the accreted interest should be classified as a cash outflow for operating activities; (3) contingent consideration payments made after a business combination should be classified based on the timing of the payment; (4) cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; (5)  cash proceeds received from the settlement of corporate-owned and bank-owned life insurance policies should be classified as cash inflows from investing activities; (6) when the equity method is applied, an accounting policy election should be made to classify distributions received using either the cumulative earnings approach or the nature of the distribution approach; (7) cash receipts from payments on a transferor’s beneficial interests obtained in a securitization of financial assets should be classified as cash inflows from investing activities; and (8) the classification of cash receipts and payments that have aspects of more than one class of cash flows should be determined by applying specific guidance in GAAP.  The guidance, which only impacts the presentation of the consolidated statement of cash flows, is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017. 

In June 2016, the FASB issued amended guidance for the measurement of credit losses on certain financial assets. The amended guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected.  The allowance for credit losses will represent a valuation account that is deducted from the amortized cost basis of the financial assets to present their net carrying value at the amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets as well as expected increases or decreases of expected credit losses that have taken place during the period. When determining the allowance, expected credit losses over the contractual term of the financial asset(s) (taking into account prepayments) will be estimated considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount.  The amended guidance also requires recording an allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination.  The initial allowance for these assets will be added to the purchase price at acquisition rather than being reported as an expense.  Subsequent changes in the allowance will be recorded through the income statement as an expense adjustment.  In addition, the amended guidance requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The calculation of credit losses for available-for-sale securities will be similar to how it is determined under existing guidance.  The guidance is effective for annual periods and interim periods within those annual periods beginning after

December 15, 2019.  The Company is assessing the new guidance to determine what modifications to existing credit estimation processes may be required.  The Company expects that the new guidance will result in an increase in its allowance for credit losses as a result of considering credit losses over the expected life of its loan portfolios. Increases in the level of the allowance for credit losses will also reflect new requirements to include the nonaccretable principal difference on purchased credit impaired loans and estimated credit losses on investment securities classified as held-to-maturity, if any.  The Company is still evaluating the extent of the increase to the allowance for credit losses and the impact to its financial statements. 

In February 2016, the FASB issued guidance related to the accounting for leases.  The core principle of the guidance is that all leases create an asset and a liability for the lessee and, therefore, lease assets and lease liabilities should be recognized in the balance sheet.  Lease assets will be recognized as a right-of-use asset and lease liabilities will be recognized as a liability to make lease payments.  While the guidance requires all leases to be recognized in the balance sheet, there continues to be a differentiation between finance leases and operating leases for purposes of income statement recognition and cash flow statement presentation.  For finance leases, interest on the lease liability

16. Recent accounting developments, continued

and amortization of the right-of-use asset will be recognized separately in the statement of income.  Repayments of principal on those lease liabilities will be classified within financing activities and payments of interest on the lease liability will be classified within operating activities in the statement of cash flows.  For operating leases, a single lease cost is recognized in the statement of income and allocated over the lease term, generally on a straight-line basis.  All cash payments are presented within operating activities in the statement of cash flows.  The accounting applied by lessors is largely unchanged from existing GAAP, however, the guidance eliminates the accounting model for leveraged leases for leases that commence after the effective date of the guidance.  The guidance is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years.  The Company occupies certain banking offices and uses certain equipment under noncancelable operating lease agreements, which currently are not reflected in its consolidated balance sheet.  Upon adoption of the guidance, the Company expects to report increased assets and increased liabilities as a result of recognizing right-of-use assets and lease liabilities on its consolidated balance sheet. The Company was committed to $467  million of minimum lease payments under noncancelable operating lease agreements at December 31, 2016.  The Company does not expect the new guidance will have a material impact to its consolidated statement of income.

In January 2016, the FASB issued amended guidance related to recognition and measurement of financial assets and liabilities. The amended guidance requires that equity investments (excluding those accounted for under the equity method of accounting or those that result in consolidation of the investee) be measured at fair value with changes in fair value recognized in net income. An entity can elect to measure equity investments that do not have readily determinable fair values at cost less impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The impairment assessment of equity investments without readily determinable fair values is simplified by requiring a qualitative assessment to identify impairment. When a qualitative assessment indicates impairment exists, an entity is required to measure the investment at fair value. The guidance eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Further, the guidance requires public entities to use the exit price when measuring the fair value of financial instruments for disclosure purposes. The guidance also requires an entity to present separately in other comprehensive income, a change in the instrument-specific credit risk when the entity has elected to measure a liability at fair value in accordance with the fair value option. Separate presentation of financial assets and liabilities by measurement category and type of instrument on the balance sheet or accompanying notes to the financial statements is required. The guidance also clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017.  The Company does hold certain equity securities in its available-for-sale portfolio.  Upon adoption of this guidance, fair value changes in such equity securities will be recognized in the consolidated statement of income as opposed to accumulated other comprehensive income where they are recognized under current accounting guidance.  Although those securities have historically fluctuated in value, how those securities could change in value in the future is not predictable.

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,

16. Recent accounting developments, continued

timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amended guidance is effective for annual reporting periods beginning after December 15, 2017, 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 “modified retrospective approach”).  The Company expects to adopt the revenue recognition guidance in the first quarter of 2018. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance.  With respect to noninterest income, the Company has identified revenue streams within the scope of the guidance and is in the final stages of its accounting analysis of the underlying contracts. The Company does not presently expect that changes in the timing of revenue recognition will be material to the amount of annual revenue recognized by the Company.  

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Significant accounting policies (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Accounting

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 Form 10-K for the year ended December 31, 2016 (“2016 Annual Report”), except that effective January 2017 the Company adopted amended accounting guidance that is discussed in note 16 herein.  The most significant of those changes related to the accounting for excess tax benefits or deficiencies associated with share-based compensation whereby beginning in 2017 those amounts are recognized in income tax expense.  Previously, tax effects resulting from changes in M&T’s share price subsequent to the grant date were recorded through shareholders’ equity.  The adoption of this new accounting guidance resulted in a reduction of income tax expense for the three months ended March 31, 2017 of $18 million, or $.12 of diluted earnings per common share. The impact on income tax expense and diluted earnings per common share in the second and third quarters of 2017 was not significant.  In the opinion of management, all adjustments necessary for a fair statement have been made and were all of a normal recurring nature.

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Acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Summary of Merger-Related Expenses

A summary of merger-related expenses included in the consolidated statement of income follows:

	Nine Months Ended September 30, 2016
	(In thousands)
Salaries and employee benefits	$	5,334
Equipment and net occupancy		1,278
Outside data processing and software		1,067
Advertising and marketing		10,522
Printing, postage and supplies		1,482
Other costs of operations		16,072
Total	$	35,755

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Investment securities (Tables)

9 Months Ended

Sep. 30, 2017

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)
September 30, 2017
Investment securities available for sale:
U.S. Treasury and federal agencies	$	2,017,901		25		10,809	$	2,007,117
Obligations of states and political subdivisions		2,621		59		2		2,678
Mortgage-backed securities:
Government issued or guaranteed		9,155,485		92,915		63,917		9,184,483
Privately issued		30		—		—		30
Other debt securities		136,769		2,739		10,978		128,530
Equity securities		57,009		37,427		450		93,986
		11,369,815		133,165		86,156		11,416,824
Investment securities held to maturity:
Obligations of states and political subdivisions		32,445		190		81		32,554
Mortgage-backed securities:
Government issued or guaranteed		3,063,164		41,849		7,147		3,097,866
Privately issued		141,430		1,753		30,734		112,449
Other debt securities		5,085		—		—		5,085
		3,242,124		43,792		37,962		3,247,954
Other securities		414,978		—		—		414,978
Total	$	15,026,917		176,957		124,118	$	15,079,756

December 31, 2016
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,912,110	386	9,952	$	1,902,544
Obligations of states and political subdivisions		3,570	77	6		3,641
Mortgage-backed securities:
Government issued or guaranteed		10,980,507	88,343	113,989		10,954,861
Privately issued		45	—	1		44
Other debt securities		134,105	1,407	16,996		118,516
Equity securities		307,964	45,073	571		352,466
		13,338,301	135,286	141,515		13,332,072
Investment securities held to maturity:
Obligations of states and political subdivisions		60,858	267	224		60,901
Mortgage-backed securities:
Government issued or guaranteed		2,233,173	37,498	7,374		2,263,297
Privately issued		157,704	897	37,120		121,481
Other debt securities		5,543	—	—		5,543
		2,457,278	38,662	44,718		2,451,222
Other securities		461,118	—	—		461,118
Total	$	16,256,697	173,948	186,233	$	16,244,412

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

At September 30, 2017, 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	$	393,453		392,506
Due after one year through five years		1,632,143		1,622,447
Due after five years through ten years		72,508		72,854
Due after ten years		59,187		50,518
		2,157,291		2,138,325
Mortgage-backed securities available for sale		9,155,515		9,184,513
	$	11,312,806		11,322,838
Debt securities held to maturity:
Due in one year or less	$	18,640		18,738
Due after one year through five years		13,612		13,619
Due after five years through ten years		193		197
Due after ten years		5,085		5,085
		37,530		37,639
Mortgage-backed securities held to maturity		3,204,594		3,210,315
	$	3,242,124		3,247,954

Investment Securities in Continuous Unrealized Loss Position

A summary of investment securities that as of September 30, 2017 and December 31, 2016 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)
September 30, 2017
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,576,717		(8,002	)		373,852		(2,807	)
Obligations of states and political subdivisions		—		—			474		(2	)
Mortgage-backed securities:
Government issued or guaranteed		2,854,982		(32,123	)		1,298,054		(31,794	)
Other debt securities		1,500		(3	)		60,518		(10,975	)
Equity securities		18,185		(303	)		153		(147	)
		4,451,384		(40,431	)		1,733,051		(45,725	)
Investment securities held to maturity:
Obligations of states and political subdivisions		4,932		(31	)		7,093		(50	)
Mortgage-backed securities:
Government issued or guaranteed		638,863		(2,832	)		157,923		(4,315	)
Privately issued		—		—			53,631		(30,734	)
		643,795		(2,863	)		218,647		(35,099	)
Total	$	5,095,179		(43,294	)		1,951,698		(80,824	)
December 31, 2016
Investment securities available for sale:
U.S. Treasury and federal agencies	$	1,710,241		(9,950	)		2,295		(2	)
Obligations of states and political subdivisions		—		—			593		(6	)
Mortgage-backed securities:
Government issued or guaranteed		6,730,829		(113,374	)		81,003		(615	)
Privately issued		—		—			27		(1	)
Other debt securities		100		(1	)		85,400		(16,995	)
Equity securities		17,776		(422	)		151		(149	)
		8,458,946		(123,747	)		169,469		(17,768	)
Investment securities held to maturity:
Obligations of states and political subdivisions		17,988		(126	)		11,891		(98	)
Mortgage-backed securities:
Government issued or guaranteed		618,832		(6,842	)		17,481		(532	)
Privately issued		17,911		(1,222	)		57,016		(35,898	)
		654,731		(8,190	)		86,388		(36,528	)
Total	$	9,113,677		(131,937	)		255,857		(54,296	)

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

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Summary of Current, Past Due and Nonaccrual Loans

A summary of current, past due and nonaccrual loans as of September 30, 2017 and December 31, 2016 follows:

	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More (a)		Accruing Loans Acquired at a Discount Past Due 90 days or More (b)		Purchased Impaired (c)		Nonaccrual		Total
	(In thousands)
September 30, 2017
Commercial, financial, leasing, etc.	$	21,486,942		48,159		3,710		369		75		203,996	$	21,743,251
Real estate:
Commercial		24,724,768		273,539		1,710		7,523		20,509		200,193		25,228,242
Residential builder and developer		1,604,095		26,182		—		4,413		10,717		2,416		1,647,823
Other commercial construction		5,952,636		51,132		1,220		—		13,972		19,263		6,038,223
Residential		15,868,656		458,066		249,983		10,025		307,529		236,363		17,130,622
Residential — limited documentation		2,829,667		88,814		—		—		114,141		101,918		3,134,540
Consumer:
Home equity lines and loans		5,275,572		34,878		772		9,856		—		75,584		5,396,662
Automobile		3,327,148		67,280		—		1		—		21,267		3,415,696
Other		4,120,712		33,070		3,893		24,038		—		8,362		4,190,075
Total	$	85,190,196		1,081,120		261,288		56,225		466,943		869,362	$	87,925,134
December 31, 2016
Commercial, financial, leasing, etc.	$	22,287,857		53,503		6,195		417		641		261,434	$	22,610,047
Real estate:
Commercial		25,076,684		183,531		7,054		12,870		31,404		176,201		25,487,744
Residential builder and developer		1,884,989		4,667		5		1,952		14,006		16,707		1,922,326
Other commercial construction		5,985,118		77,701		922		198		14,274		18,111		6,096,324
Residential		17,631,377		485,468		281,298		11,537		378,549		229,242		19,017,471
Residential — limited documentation		3,239,344		88,366		—		—		139,158		106,573		3,573,441
Consumer:
Home equity lines and loans		5,502,091		44,565		—		12,678		—		81,815		5,641,149
Automobile		2,869,232		56,158		—		1		—		18,674		2,944,065
Other		3,491,629		31,286		5,185		21,491		—		11,258		3,560,849
Total	$	87,968,321		1,025,245		300,659		61,144		578,032		920,015	$	90,853,416

(a) Excludes loans acquired at a discount.

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

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

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

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

	September 30,		December 31,
	2017		2016
	(In thousands)
Outstanding principal balance	$	1,584,126		2,311,699
Carrying amount:
Commercial, financial, leasing, etc.		42,878		59,928
Commercial real estate		308,426		456,820
Residential real estate		665,278		799,802
Consumer		127,919		487,721
	$	1,144,501		1,804,271

Summary of Changes in Accretable Yield for Acquired Loans

  A summary of changes in the accretable yield for loans acquired at a discount for the three months and nine months ended September 30, 2017 and 2016 follows:

	Three Months Ended September 30
	2017						2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)
Balance at beginning of period	$	133,532			163,099		$	162,023			245,195
Interest income		(10,815	)		(20,064	)		(12,784	)		(26,540	)
Reclassifications from nonaccretable balance		30,799			6,041			2,256			12,050
Other (a)		—			1,545			—			(818	)
Balance at end of period	$	153,516			150,621		$	151,495			229,887
	Nine Months Ended September 30
	2017						2016
	Purchased			Other			Purchased			Other
	Impaired			Acquired			Impaired			Acquired
	(In thousands)
Balance at beginning of period	$	154,233			201,153		$	184,618			296,434
Interest income		(32,546	)		(66,505	)		(40,906	)		(97,300	)
Reclassifications from nonaccretable balance		31,829			11,076			7,783			20,647
Other (a)		—			4,897			—			10,106
Balance at end of period	$	153,516			150,621		$	151,495			229,887

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

Changes in Allowance for Credit Losses

Changes in the allowance for credit losses for the three months ended September 30, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	339,314			366,229			66,006			158,559			78,117	$	1,008,225
Provision for credit losses		2,451			(7,699	)		1,267			33,886			95		30,000
Net charge-offs
Charge-offs		(9,714	)		(258	)		(4,206	)		(32,874	)		—		(47,052	)
Recoveries		4,423			5,895			2,028			9,807			—		22,153
Net (charge-offs) recoveries		(5,291	)		5,637			(2,178	)		(23,067	)		—		(24,899	)
Ending balance	$	336,474			364,167			65,095			169,378			78,212	$	1,013,326

Changes in the allowance for credit losses for the three months ended September 30, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	316,079			349,674			69,660			157,361			77,722	$	970,496
Provision for credit losses		26,222			9,963			(6,232	)		16,539			508		47,000
Net charge-offs
Charge-offs		(21,075	)		(1,564	)		(6,754	)		(29,882	)		—		(59,275	)
Recoveries		6,958			1,704			1,919			7,319			—		17,900
Net (charge-offs) recoveries		(14,117	)		140			(4,835	)		(22,563	)		—		(41,375	)
Ending balance	$	328,184			359,777			58,593			151,337			78,230	$	976,121

Changes in the allowance for credit losses for the nine months ended September 30, 2017 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	330,833			362,719			61,127			156,288			78,030	$	988,997
Provision for credit losses		44,642			1,201			14,067			76,908			182		137,000
Net charge-offs
Charge-offs		(51,318	)		(7,556	)		(16,364	)		(96,060	)		—		(171,298	)
Recoveries		12,317			7,803			6,265			32,242			—		58,627
Net (charge-offs) recoveries		(39,001	)		247			(10,099	)		(63,818	)		—		(112,671	)
Ending balance	$	336,474			364,167			65,095			169,378			78,212	$	1,013,326

Changes in the allowance for credit losses for the nine months ended September 30, 2016 were as follows:

	Commercial, Financial,			Real Estate
	Leasing, etc.			Commercial			Residential			Consumer			Unallocated		Total
	(In thousands)
Beginning balance	$	300,404			326,831			72,238			178,320			78,199	$	955,992
Provision for credit losses		39,667			29,799			(610	)		59,113			31		128,000
Net charge-offs
Charge-offs		(34,711	)		(3,569	)		(18,816	)		(107,761	)		—		(164,857	)
Recoveries		22,824			6,716			5,781			21,665			—		56,986
Net (charge-offs) recoveries		(11,887	)		3,147			(13,035	)		(86,096	)		—		(107,871	)
Ending balance	$	328,184			359,777			58,593			151,337			78,230	$	976,121

Impaired Loans and Leases

The following tables provide information with respect to loans and leases that were considered impaired as of September 30, 2017 and December 31, 2016 and for the three-month and nine-month periods ended September 30, 2017 and 2016.

	September 30, 2017						December 31, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
With an allowance recorded:
Commercial, financial, leasing, etc.	$	148,747		179,120		49,447		168,072		184,432		48,480
Real estate:
Commercial		73,144		81,244		10,200		71,862		86,666		11,620
Residential builder and developer		6,537		6,842		288		7,396		8,361		506
Other commercial construction		1,626		1,785		292		2,475		2,731		448
Residential		97,483		118,030		3,475		86,680		105,944		3,457
Residential — limited documentation		79,030		94,194		4,600		82,547		97,718		6,000
Consumer:
Home equity lines and loans		48,231		52,975		8,711		44,693		48,965		8,027
Automobile		14,225		16,743		3,011		16,982		18,272		3,740
Other		3,176		5,633		650		3,791		5,296		776
		472,199		556,566		80,674		484,498		558,385		83,054
With no related allowance recorded:
Commercial, financial, leasing, etc.		80,952		97,073		—		100,805		124,786		—
Real estate:
Commercial		148,733		158,815		—		113,276		121,846		—
Residential builder and developer		1,174		1,174		—		14,368		21,124		—
Other commercial construction		17,850		37,237		—		15,933		35,281		—
Residential		17,312		23,291		—		16,823		24,161		—
Residential — limited documentation		11,091		18,480		—		15,429		24,590		—
		277,112		336,070		—		276,634		351,788		—
Total:
Commercial, financial, leasing, etc.		229,699		276,193		49,447		268,877		309,218		48,480
Real estate:
Commercial		221,877		240,059		10,200		185,138		208,512		11,620
Residential builder and developer		7,711		8,016		288		21,764		29,485		506
Other commercial construction		19,476		39,022		292		18,408		38,012		448
Residential		114,795		141,321		3,475		103,503		130,105		3,457
Residential — limited documentation		90,121		112,674		4,600		97,976		122,308		6,000
Consumer:
Home equity lines and loans		48,231		52,975		8,711		44,693		48,965		8,027
Automobile		14,225		16,743		3,011		16,982		18,272		3,740
Other		3,176		5,633		650		3,791		5,296		776
Total	$	749,311		892,636		80,674		761,132		910,173		83,054

Interest Income Recognized on Impaired Loans

	Three Months Ended September 30, 2017						Three Months Ended September 30, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)
Commercial, financial, leasing, etc.	$	224,526		391		391		262,796		744		744
Real estate:
Commercial		233,572		1,425		1,425		175,256		1,806		1,806
Residential builder and developer		8,550		895		895		26,996		405		405
Other commercial construction		16,578		25		25		21,500		190		190
Residential		113,892		1,903		905		96,961		1,572		570
Residential — limited documentation		91,974		1,624		569		101,877		1,501		378
Consumer:
Home equity lines and loans		47,831		419		99		41,740		368		112
Automobile		14,588		251		22		18,571		303		19
Other		3,269		80		2		4,077		72		11
Total	$	754,780		7,013		4,333		749,774		6,961		4,235

	Nine Months Ended September 30, 2017						Nine Months Ended September 30, 2016
			Interest Income Recognized						Interest Income Recognized
	Average Recorded Investment		Total		Cash Basis		Average Recorded Investment		Total		Cash Basis
	(In thousands)
Commercial, financial, leasing, etc.	$	242,410		1,674		1,674		283,783		7,055		7,055
Real estate:
Commercial		205,814		3,213		3,213		177,579		3,891		3,891
Residential builder and developer		14,551		1,791		1,791		30,832		488		488
Other commercial construction		15,474		958		958		19,774		563		563
Residential		108,741		5,004		2,285		97,229		4,778		2,591
Residential — limited documentation		94,680		4,573		1,292		104,382		4,580		1,648
Consumer:
Home equity lines and loans		46,829		1,240		290		33,998		937		295
Automobile		15,483		788		62		20,358		964		83
Other		3,430		227		8		10,987		371		74
Total	$	747,412		19,468		11,573		778,922		23,627		16,688

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,				Residential		Other
	Financial,				Builder and		Commercial
	Leasing, etc.		Commercial		Developer		Construction
	(In thousands)
September 30, 2017
Pass	$	20,561,077		24,309,923		1,580,763		5,830,122
Criticized accrual		978,178		718,126		64,644		188,838
Criticized nonaccrual		203,996		200,193		2,416		19,263
Total	$	21,743,251		25,228,242		1,647,823		6,038,223
December 31, 2016
Pass	$	21,398,581		24,570,269		1,789,071		5,912,351
Criticized accrual		950,032		741,274		116,548		165,862
Criticized nonaccrual		261,434		176,201		16,707		18,111
Total	$	22,610,047		25,487,744		1,922,326		6,096,324

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

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

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
September 30, 2017
Individually evaluated for impairment	$	49,447		10,780		8,075		12,372	$	80,674
Collectively evaluated for impairment		287,027		353,387		47,674		157,006		845,094
Purchased impaired		—		—		9,346		—		9,346
Allocated	$	336,474		364,167		65,095		169,378		935,114
Unallocated										78,212
Total									$	1,013,326
December 31, 2016
Individually evaluated for impairment	$	48,480		12,500		9,457		12,543	$	82,980
Collectively evaluated for impairment		282,353		348,301		47,993		143,745		822,392
Purchased impaired		—		1,918		3,677		—		5,595
Allocated	$	330,833		362,719		61,127		156,288		910,967
Unallocated										78,030
Total									$	988,997

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

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

	Commercial, Financial,		Real Estate
	Leasing, etc.		Commercial		Residential		Consumer		Total
	(In thousands)
September 30, 2017
Individually evaluated for impairment	$	229,699		249,064		204,916		65,632	$	749,311
Collectively evaluated  for impairment		21,513,477		32,620,026		19,638,576		12,936,801		86,708,880
Purchased impaired		75		45,198		421,670		—		466,943
Total	$	21,743,251		32,914,288		20,265,162		13,002,433	$	87,925,134
December 31, 2016
Individually evaluated for impairment	$	268,877		224,630		201,479		65,466	$	760,452
Collectively evaluated for impairment		22,340,529		33,222,080		21,871,726		12,080,597		89,514,932
Purchased impaired		641		59,684		517,707		—		578,032
Total	$	22,610,047		33,506,394		22,590,912		12,146,063	$	90,853,416

Loan Modification Activities that were Considered Troubled Debt Restructurings

The tables that follow summarize the Company’s loan modification activities that were considered troubled debt restructurings for the three-month and nine-month periods ended September 30, 2017 and 2016:

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Three Months Ended September 30, 2017	(Dollars in thousands)
Commercial, financial, leasing, etc.		49	$	15,812	$	5,888	$	97	$	9,251	$	15,236
Real estate:
Commercial		17		5,861		1,420		868		3,450		5,738
Residential		34		5,123		3,033		—		2,716		5,749
Residential — limited documentation		4		515		383		—		167		550
Consumer:
Home equity lines and loans		25		2,154		461		—		1,776		2,237
Automobile		17		342		326		—		16		342
Other		1		5		5		—		—		5
Total		147	$	29,812	$	11,516	$	965	$	17,376	$	29,857
Three Months Ended September 30, 2016
Commercial, financial, leasing, etc.		43	$	69,486	$	40,183	$	—	$	19,802	$	59,985
Real estate:
Commercial		18		14,925		11,644		—		2,614		14,258
Residential		30		5,638		4,714		—		1,214		5,928
Residential — limited documentation		6		827		470		—		493		963
Consumer:
Home equity lines and loans		26		2,552		251		—		2,301		2,552
Automobile		10		186		186		—		—		186
Other		1		26		26		—		—		26
Total		134	$	93,640	$	57,474	$	—	$	26,424	$	83,898

					Post-modification (a)
	Number		Pre- modification recorded investment		Principal Deferral		Other		Combination of Concession Types		Total
Nine Months Ended September 30, 2017	(Dollars in thousands)
Commercial, financial, leasing, etc.		162	$	93,346	$	18,449	$	6,459	$	47,211	$	72,119
Real estate:
Commercial		67		38,608		16,193		868		21,332		38,393
Residential builder and developer		3		12,291		—		—		10,879		10,879
Other commercial construction		2		168		168		—		—		168
Residential		105		22,459		11,608		—		12,557		24,165
Residential — limited documentation		17		3,724		618		—		3,352		3,970
Consumer:
Home equity lines and loans		85		7,885		1,040		491		6,442		7,973
Automobile		59		1,160		1,089		—		71		1,160
Other		6		85		85		—		—		85
Total		506	$	179,726	$	49,250	$	7,818	$	101,844	$	158,912
Nine Months Ended September 30, 2016
Commercial, financial, leasing, etc.		112	$	148,204	$	98,561	$	—	$	39,971	$	138,532
Real estate:
Commercial		55		36,984		17,802		4,576		13,546		35,924
Residential builder and developer		3		23,905		22,958		—		—		22,958
Other commercial construction		2		374		250		—		124		374
Residential		73		11,946		7,945		—		4,705		12,650
Residential — limited documentation		14		2,415		803		—		1,872		2,675
Consumer:
Home equity lines and loans		84		9,189		655		—		8,534		9,189
Automobile		148		1,005		865		55		85		1,005
Other		78		1,192		951		45		196		1,192
Total		569	$	235,214	$	150,790	$	4,676	$	69,033	$	224,499

(a) Financial effects impacting the recorded investment included principal payments or advances, charge-offs and capitalized escrow arrearages.  The present value of interest rate concessions, discounted at the effective rate of the original loan, was not material.

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Shareholders' equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Issued and Outstanding Preferred Stock

Issued and outstanding preferred stock of M&T as of September 30, 2017 and December 31, 2016 is presented below:

	Shares Issued and Outstanding		Carrying Value
	(Dollars in thousands)
Series A (a)
Fixed Rate Cumulative Perpetual Preferred Stock, $1,000     liquidation preference per share		230,000	$	230,000
Series C (a)
Fixed Rate Cumulative Perpetual Preferred Stock, $1,000     liquidation preference per share		151,500	$	151,500
Series E (b)
Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock,     $1,000 liquidation preference per share		350,000	$	350,000
Series F (c)
Fixed-to-Floating Rate Non-cumulative Perpetual Preferred Stock,     $10,000 liquidation preference per share		50,000	$	500,000

(a) Dividends, if declared, are paid at 6.375%.  Warrants to purchase M&T common stock at $73.79 per share issued in connection with the Series A preferred stock expire in 2018 and totaled 327,358 at September 30, 2017.

(b) 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 LIBOR plus 361 basis points (hundredths of one percent).  The shares are redeemable in whole or in part on or after February 15, 2024.  Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

(c) Dividends, if declared, are paid semi-annually at a rate of 5.125% through October 31, 2026 and thereafter will be paid quarterly at a rate of the three-month LIBOR plus 352 basis points.  The shares are redeemable in whole or in part on or after November 1, 2026.  Notwithstanding M&T’s option to redeem the shares, if an event occurs such that the shares no longer qualify as Tier 1 capital, M&T may redeem all of the shares within 90 days following that occurrence.

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Pension plans and other postretirement benefits (Tables)

9 Months Ended

Sep. 30, 2017

Compensation And Retirement Disclosure [Abstract]

Net Periodic Defined Benefit Cost for Defined Benefit Plans

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

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended September 30
	2017			2016			2017			2016
	(In thousands)
Service cost	$	5,048			6,259			293		399
Interest cost on projected benefit obligation		19,818			20,853			929			1,242
Expected return on plan assets		(27,131	)		(27,118	)		—			—
Amortization of prior service cost (credit)		139			(807	)		(340	)		(339	)
Amortization of net actuarial loss (gain)		7,316			7,536			(247	)		15
Net periodic benefit cost	$	5,190			6,723			635			1,317

	Pension Benefits						Other Postretirement Benefits
	Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands)
Service cost	$	15,145			18,778			878			1,197
Interest cost on projected benefit obligation		59,452			62,558			2,787			3,728
Expected return on plan assets		(81,393	)		(81,355	)		—			—
Amortization of prior service cost (credit)		418			(2,421	)		(1,019	)		(1,019	)
Amortization of net actuarial loss (gain)		21,947			22,609			(741	)		45
Net periodic benefit cost	$	15,569			20,169			1,905			3,951

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Earnings per common share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Computations of Basic Earnings Per Common Share

The computations of basic earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands, except per share)
Income available to common shareholders:
Net income	$	355,923			349,984			1,085,903			984,543
Less: Preferred stock dividends (a)		(18,130	)		(20,318	)		(54,604	)		(60,953	)
Net income available to common equity		337,793			329,666			1,031,299			923,590
Less: Income attributable to unvested stock-based    compensation awards		(1,992	)		(2,674	)		(6,288	)		(7,920	)
Net income available to common shareholders	$	335,801			326,992			1,025,011			915,670
Weighted-average shares outstanding:
Common shares outstanding (including common stock    issuable) and unvested stock-based compensation awards		152,245			156,767			153,814			158,710
Less: Unvested stock-based compensation awards		(898	)		(1,274	)		(948	)		(1,374	)
Weighted-average shares outstanding		151,347			155,493			152,866			157,336
Basic earnings per common share	$	2.22			2.10			6.71			5.82

 (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 September 30						Nine Months Ended September 30
	2017			2016			2017			2016
	(In thousands, except per share)
Net income available to common equity	$	337,793			329,666			1,031,299			923,590
Less: Income attributable to unvested stock-based    compensation awards		(1,989	)		(2,668	)		(6,276	)		(7,904	)
Net income available to common shareholders	$	335,804			326,998			1,025,023			915,686
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		152,245			156,767			153,814			158,710
Less: Unvested stock-based compensation awards		(898	)		(1,274	)		(948	)		(1,374	)
Plus: Incremental shares from assumed conversion of    stock-based compensation awards and warrants to    purchase common stock		344			533			427			507
Adjusted weighted-average shares outstanding		151,691			156,026			153,293			157,843
Diluted earnings per common share	$	2.21			2.10			6.69			5.80

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Comprehensive income (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

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

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

	Investment Securities						Defined Benefit						Total Amount				Income
	With OTTI (a)			All Other			Plans			Other			Before Tax				Tax			Net
	(In thousands)
Balance — January 1, 2017	$	46,725			(73,785	)		(449,917	)		(8,268	)	$	(485,245	)			190,609		$	(294,636	)
Other comprehensive income before reclassifications:
Unrealized holding gains (losses), net		(7,365	)		60,586			—			—			53,221				(20,934	)		32,287
Foreign currency translation adjustment		—			—			—			3,829			3,829				(1,340	)		2,489
Unrealized losses on cash flow hedges		—			—			—			(1,076	)		(1,076	)			424			(652	)
Total other comprehensive income (loss) before    reclassifications		(7,365	)		60,586			—			2,753			55,974				(21,850	)		34,124
Amounts reclassified from accumulated other    comprehensive income that (increase) decrease    net income:
Amortization of unrealized holding losses on    held-to-maturity (“HTM”) securities		—			2,535			—			—			2,535		(b)		(998	)		1,537
(Gains) losses realized in net income		(50	)		67			—			—			17		(c)		(7	)		10
Accretion of net gain on terminated cash flow    hedges		—			—			—			(109	)		(109	)	(d)		43			(66	)
Net yield adjustment from cash flow hedges currently in    effect		—			—			—			(2,275	)		(2,275	)	(b)		895			(1,380	)
Amortization of prior service credit		—			—			(601	)		—			(601	)	(e)		236			(365	)
Amortization of actuarial losses		—			—			21,206			—			21,206		(e)		(8,345	)		12,861
Total reclassifications		(50	)		2,602			20,605			(2,384	)		20,773				(8,176	)		12,597
Total gain (loss) during the period		(7,415	)		63,188			20,605			369			76,747				(30,026	)		46,721
Balance — September 30, 2017	$	39,310			(10,597	)		(429,312	)		(7,899	)	$	(408,498	)			160,583		$	(247,915	)
Balance — January 1, 2016	$	16,359			62,849			(489,660	)		(4,093	)	$	(414,545	)			162,918		$	(251,627	)
Other comprehensive income before reclassifications:
Unrealized holding gains, net		1,228			234,438			—			—			235,666				(92,714	)		142,952
Foreign currency translation adjustment		—			—			—			(2,836	)		(2,836	)			989			(1,847	)
Total other comprehensive income (loss) before    reclassifications		1,228			234,438			—			(2,836	)		232,830				(91,725	)		141,105
Amounts reclassified from accumulated other    comprehensive income that (increase) decrease    net income:
Amortization of unrealized holding losses on    HTM securities		—			2,998			—			—			2,998		(b)		(1,180	)		1,818
Gains realized in net income		—			(28,748	)		—			—			(28,748	)	(c)		11,309			(17,439	)
Accretion of net gain on terminated cash flow    hedges		—			—			—			(116	)		(116	)	(d)		46			(70	)
Amortization of prior service credit		—			—			(3,440	)		—			(3,440	)	(e)		1,354			(2,086	)
Amortization of actuarial losses		—			—			22,654			—			22,654		(e)		(8,914	)		13,740
Total reclassifications		—			(25,750	)		19,214			(116	)		(6,652	)			2,615			(4,037	)
Total gain (loss) during the period		1,228			208,688			19,214			(2,952	)		226,178				(89,110	)		137,068
Balance — September 30, 2016	$	17,587			271,537			(470,446	)		(7,045	)	$	(188,367	)			73,808		$	(114,559	)

(a) Other-than-temporary impairment

(b) Included in interest income

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

(d) Included in interest expense

(e) Included in salaries and employee benefits expense

Accumulated Other Comprehensive Income (Loss), Net

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

	Investment Securities						Defined Benefit
	With OTTI			All Other			Plans			Other			Total
	(In thousands)
Balance — December 31, 2016	$	28,338			(44,657	)		(272,874	)		(5,443	)	$	(294,636	)
Net gain (loss) during period		(4,496	)		38,330			12,496			391			46,721
Balance — September 30, 2017	$	23,842			(6,327	)		(260,378	)		(5,052	)	$	(247,915	)

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Derivative financial instruments (Tables)

9 Months Ended

Sep. 30, 2017

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:

					Weighted- Average Rate
	Notional Amount		Average Maturity		Fixed			Variable			Estimated Fair Value Gain (a)
	(Inthousands)		(In years)								(In thousands)
September 30, 2017
Fair value hedges:
Fixed rate long-term borrowings (b)	$	4,950,000		2.9		2.63	%		2.04	%	$	697
Cash flow hedges:
Variable rate commercial real estate loans (b)		2,000,000		1.6		1.46	%		1.24	%		—
Total	$	6,950,000		2.5							$	697
December 31, 2016
Fair value hedges:
Fixed rate long-term borrowings (b)	$	900,000		1.1		3.75	%		2.08	%	$	11,892

(a) Effective January 2017 certain clearinghouse exchanges revised their rules such that certain required payments by counterparties for variation margin on derivative instruments that had been treated as collateral are now treated as settlements of those positions.   The impact of such rule changes at September 30, 2017 was a reduction of the estimated fair value losses on interest rate swaps designated as fair value hedges of $12.2 million and on interest rate swaps designated as cash flow hedges of $3.4 million.

(b) 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
	September 30, 2017		December 31, 2016		September 30, 2017		December 31, 2016
	(In thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	2,048	$	11,892	$	1,351	$	—
Commitments to sell real estate loans (a)		1,667		33,189		1,551		1,347
Cash flow hedges:
Interest rate swap agreements (a)		—		—		—		—
		3,715		45,081		2,902		1,347
Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		13,962		8,060		240		735
Commitments to sell real estate loans (a)		3,153		5,210		936		399
Trading:
Interest rate contracts (b)		104,178		228,810		103,825		167,737
Foreign exchange and other option and futures contracts (b)		6,823		7,908		5,905		6,639
		128,116		249,988		110,906		175,510
Total derivatives	$	131,831	$	295,069	$	113,808	$	176,857

(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.  The impact of the variation margin rule change at September 30, 2017 was a reduction of the estimated fair value of interest rate swaps in an asset position of $89.3 million and of those in a liability position of $29.2 million.

10. Derivative financial instruments, continued

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

	Amount of Gain (Loss) Recognized
	Three Months Ended September 30, 2017					Three Months Ended September 30, 2016
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(13,509	)		14,026	$	(12,588	)		12,587
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	(418	)			$	4,822
Foreign exchange and other option and futures contracts (b)		1,362					1,746
Total	$	944				$	6,568

	Amount of Gain (Loss) Recognized
	Nine Months Ended September 30, 2017					Nine Months Ended September 30, 2016
	Derivative			Hedged Item		Derivative			Hedged Item
	(In thousands)
Derivatives in fair value hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	(23,423	)		23,049	$	(22,832	)		21,603
Derivatives not designated as hedging instruments
Trading:
Interest rate contracts (b)	$	2,363				$	11,578
Foreign exchange and other option and futures contracts (b)		4,766					5,415
Total	$	7,129				$	16,993

(a) Reported as other revenues from operations.

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

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Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at September 30, 2017 and December 31, 2016 measured at estimated fair value on a recurring basis:

	Fair Value Measurements		Level 1 (a)		Level 2 (a)		Level 3
	(In thousands)
September 30, 2017
Trading account assets	$	170,516		47,927		122,589		—
Investment securities available for sale:
U.S. Treasury and federal agencies		2,007,117		—		2,007,117		—
Obligations of states and political subdivisions		2,678		—		2,678		—
Mortgage-backed securities:
Government issued or guaranteed		9,184,483		—		9,184,483		—
Privately issued		30		—		—		30
Other debt securities		128,530		—		128,530		—
Equity securities		93,986		50,917		43,069		—
		11,416,824		50,917		11,365,877		30
Real estate loans held for sale		571,199		—		571,199		—
Other assets (b)		20,830		—		6,868		13,962
Total assets	$	12,179,369		98,844		12,066,533		13,992
Trading account liabilities	$	109,730		—		109,730		—
Other liabilities (b)		4,078		—		3,838		240
Total liabilities	$	113,808		—		113,568		240
December 31, 2016
Trading account assets	$	323,867		46,135		277,732		—
Investment securities available for sale:
U.S. Treasury and federal agencies		1,902,544		—		1,902,544		—
Obligations of states and political subdivisions		3,641		—		3,641		—
Mortgage-backed securities:
Government issued or guaranteed		10,954,861		—		10,954,861		—
Privately issued		44		—		—		44
Other debt securities		118,516		—		118,516		—
Equity securities		352,466		301,711		50,755		—
		13,332,072		301,711		13,030,317		44
Real estate loans held for sale		1,056,180		—		1,056,180		—
Other assets (b)		58,351		—		50,291		8,060
Total assets	$	14,770,470		347,846		14,414,520		8,104
Trading account liabilities	$	174,376		—		174,376		—
Other liabilities (b)		2,481		—		1,746		735
Total liabilities	$	176,857		—		176,122		735

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2017 and the year ended December 31, 2016.                                        

(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 September 30, 2017 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities			Other Assets and Other Liabilities
	(In thousands)
Balance — June 30, 2017	$	35			12,425
Total gains (losses) realized/unrealized:
Included in earnings		—			22,313		(b)
Settlements		(5	)		—
Transfers in and/or out of Level 3 (a)		—			(21,016	)	(d)
Balance — September 30, 2017	$	30			13,722
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2017	$	—			12,659		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2016 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-BackedSecurities			Collateralized DebtObligations				OtherAssetsand OtherLiabilities
	(In thousands)
Balance — June 30, 2016	$	57			43,305				21,383
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				45,534		(b)
Included in other comprehensive income		—			(15,050	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(6	)		—				—
Transfers in and/or out of Level 3 (a)		—			—				(37,117	)	(d)
Balance — September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2016	$	—			—				27,663		(b)

12. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2017 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities			Other Assets and Other Liabilities
	(In thousands)
Balance — January 1, 2017	$	44			7,325
Total gains (losses) realized/unrealized:
Included in earnings		—			65,824		(b)
Settlements		(14	)		—
Transfers in and/or out of Level 3 (a)		—			(59,427	)	(d)
Balance — September 30, 2017	$	30		$	13,722
Changes in unrealized gains included in earnings    related to assets still held at September 30, 2017	$	—		$	13,684		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2016 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-BackedSecurities			CollateralizedDebt Obligations				Other Assetsand OtherLiabilities
				(In thousands)
Balance — January 1, 2016	$	74			47,393				9,879
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				104,862		(b)
Included in other comprehensive income		—			(18,268	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(23	)		(870	)			—
Transfers in and/or out of Level 3 (a)		—			—				(84,941	)	(d)
Balance — September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings    related to assets still held at    September 30, 2016	$	—			—				29,288		(b)

(a) 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.

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

(c) Reported as net unrealized losses on investment securities in the consolidated statement of comprehensive income.  The Company sold its collateralized debt obligations during the third and fourth quarters of 2016.

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

Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at September 30, 2017 and December 31, 2016:

	Fair Value		Valuation Technique	Unobservable Inputs/Assumptions		Range (Weighted- Average)
	(In thousands)
September 30, 2017
Recurring fair value measurements
Privately issued mortgage-backed    securities	$	30	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		13,722	Discountedcashflow	Commitment expirations		0%-80% (28%)
December 31, 2016
Recurring fair value measurements
Privately issued mortgage-backed    securities	$	44	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		7,325	Discountedcashflow	Commitment expirations		0%-77% (30%)

(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:

	September 30, 2017
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,368,252			1,368,252			1,290,532		77,720			—
Interest-bearing deposits at banks		6,306,484			6,306,484			—		6,306,484			—
Trading account assets		170,516			170,516			47,927		122,589			—
Investment securities		15,073,926			15,079,756			50,917		14,916,360			112,479
Loans and leases:
Commercial loans and leases		21,743,251			21,409,984			—		—			21,409,984
Commercial real estate loans		32,914,288			32,507,319			—		223,659			32,283,660
Residential real estate loans		20,265,162			20,369,392			—		4,557,929			15,811,463
Consumer loans		13,002,433			12,935,924			—		—			12,935,924
Allowance for credit losses		(1,013,326	)		—			—		—			—
Loans and leases, net		86,911,808			87,222,619			—		4,781,588			82,441,031
Accrued interest receivable		325,982			325,982			—		325,982			—
Financial liabilities:
Noninterest-bearing deposits	$	(33,111,246	)		(33,111,246	)		—		(33,111,246	)		—
Savings and interest-checking deposits		(52,936,615	)		(52,936,615	)		—		(52,936,615	)		—
Time deposits		(7,233,518	)		(7,294,182	)		—		(7,294,182	)		—
Deposits at Cayman Islands office		(232,014	)		(232,014	)		—		(232,014	)		—
Short-term borrowings		(200,768	)		(200,768	)		—		(200,768	)		—
Long-term borrowings		(8,577,645	)		(8,630,195	)		—		(8,630,195	)		—
Accrued interest payable		(69,290	)		(69,290	)		—		(69,290	)		—
Trading account liabilities		(109,730	)		(109,730	)		—		(109,730	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	13,722			13,722			—		—			13,722
Commitments to sell real estate loans		2,333			2,333			—		2,333			—
Other credit-related commitments		(119,938	)		(119,938	)		—		—			(119,938	)
Interest rate swap agreements used for interest    rate risk management		697			697			—		697			—

	December 31, 2016
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
				(In thousands)
Financial assets:
Cash and cash equivalents	$	1,320,549			1,320,549			1,249,654		70,895		—
Interest-bearing deposits at banks		5,000,638			5,000,638			—		5,000,638		—
Trading account assets		323,867			323,867			46,135		277,732		—
Investment securities		16,250,468			16,244,412			301,711		15,821,176			121,525
Loans and leases:
Commercial loans and leases		22,610,047			22,239,428		—		—				22,239,428
Commercial real estate loans		33,506,394			33,129,428		—			642,590			32,486,838
Residential real estate loans		22,590,912			22,638,167		—			4,912,488			17,725,679
Consumer loans		12,146,063			12,061,590		—			—			12,061,590
Allowance for credit losses		(988,997	)		—		—			—			—
Loans and leases, net		89,864,419			90,068,613		—			5,555,078			84,513,535
Accrued interest receivable		308,805			308,805		—			308,805		—
Financial liabilities:
Noninterest-bearing deposits	$	(32,813,896	)		(32,813,896	)	—			(32,813,896	)	—
Savings and interest-checking deposits		(52,346,207	)		(52,346,207	)	—			(52,346,207	)	—
Time deposits		(10,131,846	)		(10,222,585	)	—			(10,222,585	)	—
Deposits at Cayman Islands office		(201,927	)		(201,927	)	—			(201,927	)	—
Short-term borrowings		(163,442	)		(163,442	)	—			(163,442	)	—
Long-term borrowings		(9,493,835	)		(9,473,844	)	—			(9,473,844	)	—
Accrued interest payable		(75,172	)		(75,172	)	—			(75,172	)	—
Trading account liabilities		(174,376	)		(174,376	)	—			(174,376	)	—
Other financial instruments:
Commitments to originate real estate loans for sale	$	7,325			7,325		—			—			7,325
Commitments to sell real estate loans		36,653			36,653		—			36,653		—
Other credit-related commitments		(136,295	)		(136,295	)	—			—			(136,295	)
Interest rate swap agreements used for interest    rate risk management		11,892			11,892		—			11,892		—

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Commitments and contingencies (Tables)

9 Months Ended

Sep. 30, 2017

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.

	September 30,		December 31,
	2017		2016
	(In thousands)
Commitments to extend credit
Home equity lines of credit	$	5,492,892		5,499,609
Commercial real estate loans to be sold		170,786		70,100
Other commercial real estate		5,749,428		6,451,709
Residential real estate loans to be sold		482,650		478,950
Other residential real estate		202,702		232,721
Commercial and other		12,677,838		12,298,473
Standby letters of credit		2,657,352		2,987,091
Commercial letters of credit		42,684		44,723
Financial guarantees and indemnification contracts		3,385,498		3,043,580
Commitments to sell real estate loans		1,052,472		1,489,237

XML

Segment information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Summary of Reclassified Segment Information on Comparable Basis

The financial information of the Company's segments was compiled utilizing the accounting policies described in note 22 of Notes to Financial Statements in the 2016 Annual Report.  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.  As disclosed in the 2016 Annual Report, during 2016 the Company revised its funds transfer pricing allocation related to borrowings.  Additionally, during the second quarter of 2017, the Company revised its funds transfer pricing allocation related to certain deposit categories.  As a result, prior period

14. Segment information, continued

financial information has been reclassified to provide segment information on a comparable basis, as noted in the following tables.

	Three Months Ended September 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	116,513		4,388			120,901	$	21,422			2,602			24,024
Commercial Banking		268,683		(155	)		268,528		102,796			(92	)		102,704
Commercial Real Estate		205,562		—			205,562		90,065			—			90,065
Discretionary Portfolio		114,391		(8,806	)		105,585		50,773			(5,222	)		45,551
Residential Mortgage Banking		108,576		(11,901	)		96,675		22,924			(7,059	)		15,865
Retail Banking		353,016		8,848			361,864		69,506			5,247			74,753
All Other		182,949		7,626			190,575		(7,502	)		4,524			(2,978	)
Total	$	1,349,690		—			1,349,690	$	349,984			—			349,984
	Nine Months Ended September 30, 2016
	Total Revenues as Previously Reported		Impact of Changes			Total Revenues as Reclassified		Net Income (Loss) as Previously Reported			Impact of Changes			Net Income (Loss) as Reclassified
	(In thousands)
Business Banking	$	344,562		13,022			357,584	$	69,617			7,723			77,340
Commercial Banking		787,781		(423	)		787,358		309,515			(251	)		309,264
Commercial Real Estate		575,117		—			575,117		254,682			—			254,682
Discretionary Portfolio		324,195		(28,575	)		295,620		151,522			(16,947	)		134,575
Residential Mortgage Banking		309,393		(28,539	)		280,854		59,981			(16,926	)		43,055
Retail Banking		1,037,727		25,196			1,062,923		204,291			14,943			219,234
All Other		575,885		19,319			595,204		(65,065	)		11,458			(53,607	)
Total	$	3,954,660		—			3,954,660	$	984,543			—			984,543

Information about Company's Segments

14. Segment information, continued

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

	Three Months Ended September 30
	2017								2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	130,501		919			31,408		$	120,901		1,086			24,024
Commercial Banking		267,822		840			109,797			268,528		950			102,704
Commercial Real Estate		212,014		401			97,295			205,562		463			90,065
Discretionary Portfolio		65,808		(12,346	)		31,515			105,585		(14,795	)		45,551
Residential Mortgage Banking		90,018		18,866			13,546			96,675		22,051			15,865
Retail Banking		392,542		2,668			96,329			361,864		3,052			74,753
All Other		257,858		(11,348	)		(23,967	)		190,575		(12,807	)		(2,978	)
Total	$	1,416,563		—			355,923		$	1,349,690		—			349,984

	Nine Months Ended September 30
	2017								2016
	Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)			Total Revenues(a)		Inter- segment Revenues			Net Income (Loss)
	(In thousands)
Business Banking	$	375,816		2,836			85,146		$	357,584		3,274			77,340
Commercial Banking		818,846		2,603			328,211			787,358		2,917			309,264
Commercial Real Estate		604,437		1,165			269,113			575,117		1,299			254,682
Discretionary Portfolio		216,798		(37,670	)		95,200			295,620		(43,726	)		134,575
Residential Mortgage Banking		264,120		55,221			37,206			280,854		62,955			43,055
Retail Banking		1,144,964		8,760			282,614			1,062,923		9,198			219,234
All Other		751,703		(32,915	)		(11,587	)		595,204		(35,917	)		(53,607	)
Total	$	4,176,684		—			1,085,903		$	3,954,660		—			984,543

14. Segment information, continued

	Average Total Assets
	Nine Months Ended September 30				Year Ended December 31
	2017		2016		2016
	(In millions)
Business Banking	$	5,596		5,442		5,456
Commercial Banking		26,699		25,363		25,592
Commercial Real Estate		22,800		20,571		21,131
Discretionary Portfolio		37,807		41,253		40,867
Residential Mortgage Banking		2,335		2,578		2,569
Retail Banking		12,519		11,739		11,840
All Other		13,317		16,951		16,885
Total	$	121,073		123,897		124,340

(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 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 $8,828,000 and $6,725,000 for the three-month periods ended September 30, 2017 and 2016, respectively, and $25,563,000 and $19,579,000 for the nine-month periods ended September 30, 2017 and 2016, 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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Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Significant Accounting Policies [Line Items]
Diluted	$ 2.21		$ 2.10	$ 6.69	$ 5.80
Adoption of New Accounting Guidance [Member]
Significant Accounting Policies [Line Items]
Reduction of Income tax expense		$ (18)
Diluted		$ 0.12

XML

Acquisitions - Summary of Merger-Related Expenses (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary of merger-related expenses
Salaries and employee benefits	$ 399,089,000	$ 399,786,000	$ 1,247,851,000	$ 1,230,246,000
Equipment and net occupancy	75,558,000	75,263,000	223,721,000	225,165,000
Outside data processing and software	45,761,000	42,878,000	134,637,000	128,402,000
Advertising and marketing	17,403,000	21,996,000	49,837,000	66,063,000
Printing, postage and supplies	8,732,000	8,972,000	27,397,000	30,865,000
Other costs of operations	227,705,000	165,251,000	558,579,000	488,063,000
Hudson City [Member]
Summary of merger-related expenses
Salaries and employee benefits				5,334,000
Equipment and net occupancy				1,278,000
Outside data processing and software				1,067,000
Advertising and marketing				10,522,000
Printing, postage and supplies				1,482,000
Other costs of operations				16,072,000
Total	$ 0	$ 0	$ 0	$ 35,755,000

XML

Acquisitions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Hudson City [Member]
Business Acquisition [Line Items]
Merger-related expenses	$ 0	$ 0	$ 0	$ 35,755,000

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Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	$ 11,369,815	$ 13,338,301
Investment securities available for sale, gross unrealized gains	133,165	135,286
Investment securities available for sale, gross unrealized losses	86,156	141,515
Investment securities available for sale, estimated fair value	11,416,824	13,332,072
Amortized cost for held to maturity	3,242,124	2,457,278
Gross unrealized gains for held to maturity	43,792	38,662
Gross unrealized losses for held to maturity	37,962	44,718
Estimated fair value for held to maturity	3,247,954	2,451,222
Other securities, Amortized cost	414,978	461,118
Other securities, Estimated fair value	414,978	461,118
Total Amortized cost	15,026,917	16,256,697
Total gross unrealized gains	176,957	173,948
Total gross unrealized losses	124,118	186,233
Total estimated fair value	15,079,756	16,244,412
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	2,017,901	1,912,110
Investment securities available for sale, gross unrealized gains	25	386
Investment securities available for sale, gross unrealized losses	10,809	9,952
Investment securities available for sale, estimated fair value	2,007,117	1,902,544
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	2,621	3,570
Investment securities available for sale, gross unrealized gains	59	77
Investment securities available for sale, gross unrealized losses	2	6
Investment securities available for sale, estimated fair value	2,678	3,641
Amortized cost for held to maturity	32,445	60,858
Gross unrealized gains for held to maturity	190	267
Gross unrealized losses for held to maturity	81	224
Estimated fair value for held to maturity	32,554	60,901
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	9,155,485	10,980,507
Investment securities available for sale, gross unrealized gains	92,915	88,343
Investment securities available for sale, gross unrealized losses	63,917	113,989
Investment securities available for sale, estimated fair value	9,184,483	10,954,861
Amortized cost for held to maturity	3,063,164	2,233,173
Gross unrealized gains for held to maturity	41,849	37,498
Gross unrealized losses for held to maturity	7,147	7,374
Estimated fair value for held to maturity	3,097,866	2,263,297
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	30	45
Investment securities available for sale, gross unrealized losses		1
Investment securities available for sale, estimated fair value	30	44
Amortized cost for held to maturity	141,430	157,704
Gross unrealized gains for held to maturity	1,753	897
Gross unrealized losses for held to maturity	30,734	37,120
Estimated fair value for held to maturity	112,449	121,481
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	136,769	134,105
Investment securities available for sale, gross unrealized gains	2,739	1,407
Investment securities available for sale, gross unrealized losses	10,978	16,996
Investment securities available for sale, estimated fair value	128,530	118,516
Amortized cost for held to maturity	5,085	5,543
Estimated fair value for held to maturity	5,085	5,543
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Investment securities available for sale, amortized cost	57,009	307,964
Investment securities available for sale, gross unrealized gains	37,427	45,073
Investment securities available for sale, gross unrealized losses	450	571
Investment securities available for sale, estimated fair value	$ 93,986	$ 352,466

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Investment Securities - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Investment	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) Investment	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Investment Holdings [Line Items]
Gross realized gains on sale of investment securities	$ 0	$ 0	$ 0	$ 0
Number of investment securities with aggregate gross unrealized losses | Investment	939		939
Unrealized losses on individual investment securities	$ 124,118,000		$ 124,118,000		$ 186,233,000
Cost method investment securities	$ 415,000,000		$ 415,000,000
Collateralized Debt Obligations [Member]
Investment Holdings [Line Items]
Net gain on securities sold		$ 28,000,000

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Investment Securities - Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt securities available for sale:
Due in one year or less	$ 393,453
Due after one year through five years	1,632,143
Due after five years through ten years	72,508
Due after ten years	59,187
Total available for sale (amortized cost)	2,157,291
Mortgage-backed securities available for sale	9,155,515
Total	11,312,806
Debt securities held to maturity:
Due in one year or less	18,640
Due after one year through five years	13,612
Due after five years through ten years	193
Due after ten years	5,085
Total available for held to maturity (amortized cost)	37,530
Mortgage-backed securities held to maturity	3,204,594
Amortized cost for held to maturity	3,242,124	$ 2,457,278
Debt securities available for sale:
Due in one year or less	392,506
Due after one year through five years	1,622,447
Due after five years through ten years	72,854
Due after ten years	50,518
Total available for sale (fair value)	2,138,325
Mortgage-backed securities available for sale	9,184,513
Total	11,322,838
Debt securities held to maturity:
Due in one year or less	18,738
Due after one year through five years	13,619
Due after five years through ten years	197
Due after ten years	5,085
Total available for held to maturity (fair value)	37,639
Mortgage-backed securities held to maturity	3,210,315
Total	$ 3,247,954	$ 2,451,222

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Investment Securities - Investment Securities in Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	$ 4,451,384	$ 8,458,946
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(40,431)	(123,747)
Estimated fair value, 12 months or more	1,733,051	169,469
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(45,725)	(17,768)
Held to maturity, Estimated fair value, Less than 12 months	643,795	654,731
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(2,863)	(8,190)
Held to maturity, Estimated fair value, 12 months or more	218,647	86,388
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(35,099)	(36,528)
Total investment securities, fair value less than 12 months	5,095,179	9,113,677
Investment Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses	(43,294)	(131,937)
Total of investment securities, fair value, 12 Months or More	1,951,698	255,857
Investment Securities Continuous Unrealized Loss Position Twelve Months or Longer Aggregate Losses	(80,824)	(54,296)
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	1,576,717	1,710,241
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(8,002)	(9,950)
Estimated fair value, 12 months or more	373,852	2,295
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(2,807)	(2)
Obligations of States and Political Subdivisions [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, 12 months or more	474	593
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(2)	(6)
Held to maturity, Estimated fair value, Less than 12 months	4,932	17,988
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(31)	(126)
Held to maturity, Estimated fair value, 12 months or more	7,093	11,891
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(50)	(98)
Government Issued or Guaranteed [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	2,854,982	6,730,829
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(32,123)	(113,374)
Estimated fair value, 12 months or more	1,298,054	81,003
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(31,794)	(615)
Held to maturity, Estimated fair value, Less than 12 months	638,863	618,832
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses	(2,832)	(6,842)
Held to maturity, Estimated fair value, 12 months or more	157,923	17,481
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	(4,315)	(532)
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		27
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses		(1)
Other Debt Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	1,500	100
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(3)	(1)
Estimated fair value, 12 months or more	60,518	85,400
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(10,975)	(16,995)
Equity Securities [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Estimated fair value, Less than 12 months	18,185	17,776
Available For Sale Securities Continuous Unrealized Losses Position Less Than Twelve Months Aggregate Losses	(303)	(422)
Estimated fair value, 12 months or more	153	151
Available For Sale Securities Continuous Unrealized Loss Position Twelve Months Or More Aggregate Losses	(147)	(149)
Privately Issued [Member]
Schedule Of Available For Sale Securities And Held To Maturity [Line Items]
Held to maturity, Estimated fair value, Less than 12 months		17,911
Held To Maturity Securities Continuous Unrealized Loss Position Less Than12 Months Aggregate Losses		(1,222)
Held to maturity, Estimated fair value, 12 months or more	53,631	57,016
Held To Maturity Securities Continuous Unrealized Loss Position12 Months Or Longer Aggregate Losses	$ (30,734)	$ (35,898)

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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	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	$ 85,190,196	$ 87,968,321
30-89 Days Past Due	1,081,120	1,025,245
Accruing Loans Past Due 90 Days or More	261,288	300,659
Purchased Impaired	466,943	578,032
Nonaccrual	869,362	920,015
Loans and leases, net of unearned discount	87,925,134	90,853,416
Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	56,225	61,144
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	21,486,942	22,287,857
30-89 Days Past Due	48,159	53,503
Accruing Loans Past Due 90 Days or More	3,710	6,195
Purchased Impaired	75	641
Nonaccrual	203,996	261,434
Loans and leases, net of unearned discount	21,743,251	22,610,047
Commercial, Financial, Leasing, etc. [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	369	417
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	24,724,768	25,076,684
30-89 Days Past Due	273,539	183,531
Accruing Loans Past Due 90 Days or More	1,710	7,054
Purchased Impaired	20,509	31,404
Nonaccrual	200,193	176,201
Loans and leases, net of unearned discount	25,228,242	25,487,744
Commercial [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	7,523	12,870
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	1,604,095	1,884,989
30-89 Days Past Due	26,182	4,667
Accruing Loans Past Due 90 Days or More		5
Purchased Impaired	10,717	14,006
Nonaccrual	2,416	16,707
Loans and leases, net of unearned discount	1,647,823	1,922,326
Residential Builder and Developer [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	4,413	1,952
Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	5,952,636	5,985,118
30-89 Days Past Due	51,132	77,701
Accruing Loans Past Due 90 Days or More	1,220	922
Purchased Impaired	13,972	14,274
Nonaccrual	19,263	18,111
Loans and leases, net of unearned discount	6,038,223	6,096,324
Other Commercial Construction [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More		198
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	15,868,656	17,631,377
30-89 Days Past Due	458,066	485,468
Accruing Loans Past Due 90 Days or More	249,983	281,298
Purchased Impaired	307,529	378,549
Nonaccrual	236,363	229,242
Loans and leases, net of unearned discount	17,130,622	19,017,471
Residential [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	10,025	11,537
Residential Limited Documentation [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	2,829,667	3,239,344
30-89 Days Past Due	88,814	88,366
Purchased Impaired	114,141	139,158
Nonaccrual	101,918	106,573
Loans and leases, net of unearned discount	3,134,540	3,573,441
Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	5,275,572	5,502,091
30-89 Days Past Due	34,878	44,565
Accruing Loans Past Due 90 Days or More	772
Nonaccrual	75,584	81,815
Loans and leases, net of unearned discount	5,396,662	5,641,149
Home Equity Lines and Loans [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	9,856	12,678
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	3,327,148	2,869,232
30-89 Days Past Due	67,280	56,158
Nonaccrual	21,267	18,674
Loans and leases, net of unearned discount	3,415,696	2,944,065
Automobile [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	1	1
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current	4,120,712	3,491,629
30-89 Days Past Due	33,070	31,286
Accruing Loans Past Due 90 Days or More	3,893	5,185
Nonaccrual	8,362	11,258
Loans and leases, net of unearned discount	4,190,075	3,560,849
Other [Member] | Accruing Loans Acquired at Discount [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing Loans Past Due 90 Days or More	$ 24,038	$ 21,491

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Loans and Leases and the Allowance for Credit Losses - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Loans And Leases Receivable [Line Items]
Commercial real estate loans held for sale	$ 224	$ 643
Contractual principal and interest payments	$ 467	578
Loan delinquent period	90 days
Minimum delinquency period for loan level collectability analysis consumer mortgage	150 days
Amount of foreclosed residential real estate property held	$ 106	129
Loans secured by residential real estate that were in the process of foreclosure	$ 545	506
Percentage loans in the process of foreclosure, serviced by other entities, classified as purchased impaired	48.00%
Percentage loans in the process of foreclosure, serviced by other entities, classified as government guaranteed	20.00%
Residential Mortgage Loans [Member]
Loans And Leases Receivable [Line Items]
Mortgage loans held for sale	$ 347	414
Carrying value of loans for which partial charge-off has been recognized	39	44
Mortgage loans on real real estate not requiring charge off due to collateral carrying amount	19	16
Home Equity Loans and Lines of Credit [Member]
Loans And Leases Receivable [Line Items]
Carrying value of loans for which partial charge-off has been recognized	27	32
Mortgage loans on real real estate not requiring charge off due to collateral carrying amount	$ 33	$ 39
Maximum [Member]
Loans And Leases Receivable [Line Items]
Purchased impaired loans as a percentage of total assets	1.00%	1.00%

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Loans and Leases and the Allowance for Credit Losses - Outstanding Principal Balance and Carrying Amount of Loans and Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Outstanding principal and carrying value of acquired loans recorded at fair value
Outstanding principal balance	$ 1,584,126	$ 2,311,699
Carrying amount	1,144,501	1,804,271
Commercial, Financial, Leasing, etc. [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	42,878	59,928
Commercial Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	308,426	456,820
Residential Real Estate [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	665,278	799,802
Consumer [Member]
Outstanding principal and carrying value of acquired loans recorded at fair value
Carrying amount	$ 127,919	$ 487,721

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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	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Purchased Impaired [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	$ 133,532	$ 162,023	$ 154,233	$ 184,618
Interest income	(10,815)	(12,784)	(32,546)	(40,906)
Reclassifications from nonaccretable balance	30,799	2,256	31,829	7,783
Balance at end of period	153,516	151,495	153,516	151,495
Other Acquired [Member]
Summary of changes in Accretable Yield for acquired loans
Balance at beginning of period	163,099	245,195	201,153	296,434
Interest income	(20,064)	(26,540)	(66,505)	(97,300)
Reclassifications from nonaccretable balance	6,041	12,050	11,076	20,647
Other	1,545	(818)	4,897	10,106
Balance at end of period	$ 150,621	$ 229,887	$ 150,621	$ 229,887

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Loans and Leases and the Allowance for Credit Losses - Changes in Allowance for Credit Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 1,008,225	$ 970,496	$ 988,997	$ 955,992
Provision for credit losses	30,000	47,000	137,000	128,000
Net charge-offs
Charge-offs	(47,052)	(59,275)	(171,298)	(164,857)
Recoveries	22,153	17,900	58,627	56,986
Net (charge-offs) recoveries	(24,899)	(41,375)	(112,671)	(107,871)
Ending balance	1,013,326	976,121	1,013,326	976,121
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	339,314	316,079	330,833	300,404
Provision for credit losses	2,451	26,222	44,642	39,667
Net charge-offs
Charge-offs	(9,714)	(21,075)	(51,318)	(34,711)
Recoveries	4,423	6,958	12,317	22,824
Net (charge-offs) recoveries	(5,291)	(14,117)	(39,001)	(11,887)
Ending balance	336,474	328,184	336,474	328,184
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	366,229	349,674	362,719	326,831
Provision for credit losses	(7,699)	9,963	1,201	29,799
Net charge-offs
Charge-offs	(258)	(1,564)	(7,556)	(3,569)
Recoveries	5,895	1,704	7,803	6,716
Net (charge-offs) recoveries	5,637	140	247	3,147
Ending balance	364,167	359,777	364,167	359,777
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	66,006	69,660	61,127	72,238
Provision for credit losses	1,267	(6,232)	14,067	(610)
Net charge-offs
Charge-offs	(4,206)	(6,754)	(16,364)	(18,816)
Recoveries	2,028	1,919	6,265	5,781
Net (charge-offs) recoveries	(2,178)	(4,835)	(10,099)	(13,035)
Ending balance	65,095	58,593	65,095	58,593
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	158,559	157,361	156,288	178,320
Provision for credit losses	33,886	16,539	76,908	59,113
Net charge-offs
Charge-offs	(32,874)	(29,882)	(96,060)	(107,761)
Recoveries	9,807	7,319	32,242	21,665
Net (charge-offs) recoveries	(23,067)	(22,563)	(63,818)	(86,096)
Ending balance	169,378	151,337	169,378	151,337
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	78,117	77,722	78,030	78,199
Provision for credit losses	95	508	182	31
Net charge-offs
Ending balance	$ 78,212	$ 78,230	$ 78,212	$ 78,230

XML

Loans and Leases and the Allowance for Credit Losses - Impaired Loans and Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	$ 472,199	$ 484,498
Unpaid principal balance with related allowance	556,566	558,385
Related allowance	80,674	83,054
Recorded investment with no related allowance	277,112	276,634
Unpaid principal balance with no related allowance	336,070	351,788
Recorded investment	749,311	761,132
Unpaid principal balance	892,636	910,173
Commercial Real Estate [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	73,144	71,862
Unpaid principal balance with related allowance	81,244	86,666
Related allowance	10,200	11,620
Recorded investment with no related allowance	148,733	113,276
Unpaid principal balance with no related allowance	158,815	121,846
Recorded investment	221,877	185,138
Unpaid principal balance	240,059	208,512
Automobile [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	14,225	16,982
Unpaid principal balance with related allowance	16,743	18,272
Related allowance	3,011	3,740
Recorded investment	14,225	16,982
Unpaid principal balance	16,743	18,272
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	148,747	168,072
Unpaid principal balance with related allowance	179,120	184,432
Related allowance	49,447	48,480
Recorded investment with no related allowance	80,952	100,805
Unpaid principal balance with no related allowance	97,073	124,786
Recorded investment	229,699	268,877
Unpaid principal balance	276,193	309,218
Residential Builder and Developer [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	6,537	7,396
Unpaid principal balance with related allowance	6,842	8,361
Related allowance	288	506
Recorded investment with no related allowance	1,174	14,368
Unpaid principal balance with no related allowance	1,174	21,124
Recorded investment	7,711	21,764
Unpaid principal balance	8,016	29,485
Other Commercial Construction [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	1,626	2,475
Unpaid principal balance with related allowance	1,785	2,731
Related allowance	292	448
Recorded investment with no related allowance	17,850	15,933
Unpaid principal balance with no related allowance	37,237	35,281
Recorded investment	19,476	18,408
Unpaid principal balance	39,022	38,012
Residential [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	97,483	86,680
Unpaid principal balance with related allowance	118,030	105,944
Related allowance	3,475	3,457
Recorded investment with no related allowance	17,312	16,823
Unpaid principal balance with no related allowance	23,291	24,161
Recorded investment	114,795	103,503
Unpaid principal balance	141,321	130,105
Residential Limited Documentation [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	79,030	82,547
Unpaid principal balance with related allowance	94,194	97,718
Related allowance	4,600	6,000
Recorded investment with no related allowance	11,091	15,429
Unpaid principal balance with no related allowance	18,480	24,590
Recorded investment	90,121	97,976
Unpaid principal balance	112,674	122,308
Home Equity Lines and Loans [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	48,231	44,693
Unpaid principal balance with related allowance	52,975	48,965
Related allowance	8,711	8,027
Recorded investment	48,231	44,693
Unpaid principal balance	52,975	48,965
Other [Member]
Financing Receivable Impaired [Line Items]
Recorded investment with related allowance	3,176	3,791
Unpaid principal balance with related allowance	5,633	5,296
Related allowance	650	776
Recorded investment	3,176	3,791
Unpaid principal balance	$ 5,633	$ 5,296

XML

Loans and Leases and the Allowance for Credit Losses - Interest Income Recognized on Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	$ 754,780	$ 749,774	$ 747,412	$ 778,922
Interest Income Recognized, Total	7,013	6,961	19,468	23,627
Interest Income Recognized, Cash Basis	4,333	4,235	11,573	16,688
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	233,572	175,256	205,814	177,579
Interest Income Recognized, Total	1,425	1,806	3,213	3,891
Interest Income Recognized, Cash Basis	1,425	1,806	3,213	3,891
Commercial, Financial, Leasing, etc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	224,526	262,796	242,410	283,783
Interest Income Recognized, Total	391	744	1,674	7,055
Interest Income Recognized, Cash Basis	391	744	1,674	7,055
Residential Builder and Developer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	8,550	26,996	14,551	30,832
Interest Income Recognized, Total	895	405	1,791	488
Interest Income Recognized, Cash Basis	895	405	1,791	488
Other Commercial Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	16,578	21,500	15,474	19,774
Interest Income Recognized, Total	25	190	958	563
Interest Income Recognized, Cash Basis	25	190	958	563
Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	113,892	96,961	108,741	97,229
Interest Income Recognized, Total	1,903	1,572	5,004	4,778
Interest Income Recognized, Cash Basis	905	570	2,285	2,591
Residential Limited Documentation [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	91,974	101,877	94,680	104,382
Interest Income Recognized, Total	1,624	1,501	4,573	4,580
Interest Income Recognized, Cash Basis	569	378	1,292	1,648
Home Equity Lines and Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	47,831	41,740	46,829	33,998
Interest Income Recognized, Total	419	368	1,240	937
Interest Income Recognized, Cash Basis	99	112	290	295
Automobile [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	14,588	18,571	15,483	20,358
Interest Income Recognized, Total	251	303	788	964
Interest Income Recognized, Cash Basis	22	19	62	83
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	3,269	4,077	3,430	10,987
Interest Income Recognized, Total	80	72	227	371
Interest Income Recognized, Cash Basis	$ 2	$ 11	$ 8	$ 74

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Loans and Leases and the Allowance for Credit Losses - Summary of Loan Grades (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 87,925,134	$ 90,853,416
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	21,743,251	22,610,047
Commercial, Financial, Leasing, etc. [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	20,561,077	21,398,581
Commercial, Financial, Leasing, etc. [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	978,178	950,032
Commercial, Financial, Leasing, etc. [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	203,996	261,434
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	25,228,242	25,487,744
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	24,309,923	24,570,269
Commercial [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	718,126	741,274
Commercial [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	200,193	176,201
Residential Builder and Developer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,647,823	1,922,326
Residential Builder and Developer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	1,580,763	1,789,071
Residential Builder and Developer [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	64,644	116,548
Residential Builder and Developer [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	2,416	16,707
Other Commercial Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	6,038,223	6,096,324
Other Commercial Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	5,830,122	5,912,351
Other Commercial Construction [Member] | Criticized Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	188,838	165,862
Other Commercial Construction [Member] | Criticized Nonaccrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases, net of unearned discount	$ 19,263	$ 18,111

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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	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	$ 80,674		$ 82,980
Allowance for credit losses	845,094		822,392
Allowance for credit losses	1,013,326	$ 1,008,225	988,997	$ 976,121	$ 970,496	$ 955,992
Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	9,346		5,595
Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	935,114		910,967
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	78,212	$ 78,117	78,030	$ 78,230	$ 77,722	$ 78,199
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	49,447		48,480
Allowance for credit losses	287,027		282,353
Commercial, Financial, Leasing, etc. [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	336,474		330,833
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	10,780		12,500
Allowance for credit losses	353,387		348,301
Commercial Real Estate [Member] | Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses			1,918
Commercial Real Estate [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	364,167		362,719
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	8,075		9,457
Allowance for credit losses	47,674		47,993
Residential Real Estate [Member] | Purchased Impaired [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	9,346		3,677
Residential Real Estate [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	65,095		61,127
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	12,372		12,543
Allowance for credit losses	157,006		143,745
Consumer Loans [Member] | Allocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for credit losses	$ 169,378		$ 156,288

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	Sep. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]
Recorded investment in loans and leases, individually evaluated for impairment	$ 749,311	$ 760,452
Recorded investment in loans and leases, collectively evaluated for impairment	86,708,880	89,514,932
Recorded investment in loans and leases, purchased impaired	466,943	578,032
Loans and leases, net of unearned discount	87,925,134	90,853,416
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment in loans and leases, individually evaluated for impairment	229,699	268,877
Recorded investment in loans and leases, collectively evaluated for impairment	21,513,477	22,340,529
Recorded investment in loans and leases, purchased impaired	75	641
Loans and leases, net of unearned discount	21,743,251	22,610,047
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment in loans and leases, individually evaluated for impairment	249,064	224,630
Recorded investment in loans and leases, collectively evaluated for impairment	32,620,026	33,222,080
Recorded investment in loans and leases, purchased impaired	45,198	59,684
Loans and leases, net of unearned discount	32,914,288	33,506,394
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment in loans and leases, individually evaluated for impairment	204,916	201,479
Recorded investment in loans and leases, collectively evaluated for impairment	19,638,576	21,871,726
Recorded investment in loans and leases, purchased impaired	421,670	517,707
Loans and leases, net of unearned discount	20,265,162	22,590,912
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Recorded investment in loans and leases, individually evaluated for impairment	65,632	65,466
Recorded investment in loans and leases, collectively evaluated for impairment	12,936,801	12,080,597
Loans and leases, net of unearned discount	$ 13,002,433	$ 12,146,063

XML

Loans and Leases and the Allowance for Credit Losses - Loan Modification Activities that were Considered Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) Modification	Sep. 30, 2016 USD ($) Modification	Sep. 30, 2017 USD ($) Modification	Sep. 30, 2016 USD ($) Modification
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	147	134	506	569
Pre-modification recorded investment	$ 29,812	$ 93,640	$ 179,726	$ 235,214
Post- modification	$ 29,857	$ 83,898	$ 158,912	$ 224,499
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	17	18	67	55
Pre-modification recorded investment	$ 5,861	$ 14,925	$ 38,608	$ 36,984
Post- modification	5,738	14,258	38,393	35,924
Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	11,516	57,474	49,250	150,790
Principal Deferral [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	1,420	11,644	16,193	17,802
Other [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	965		7,818	4,676
Other [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	868		868	4,576
Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	17,376	26,424	101,844	69,033
Combination of Concession Types [Member] | Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 3,450	$ 2,614	$ 21,332	$ 13,546
Commercial, Financial, Leasing, etc. [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	49	43	162	112
Pre-modification recorded investment	$ 15,812	$ 69,486	$ 93,346	$ 148,204
Post- modification	15,236	59,985	72,119	138,532
Commercial, Financial, Leasing, etc. [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	5,888	40,183	18,449	98,561
Commercial, Financial, Leasing, etc. [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	97		6,459
Commercial, Financial, Leasing, etc. [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 9,251	$ 19,802	$ 47,211	$ 39,971
Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	34	30	105	73
Pre-modification recorded investment	$ 5,123	$ 5,638	$ 22,459	$ 11,946
Post- modification	5,749	5,928	24,165	12,650
Residential [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	3,033	4,714	11,608	7,945
Residential [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 2,716	$ 1,214	$ 12,557	$ 4,705
Residential Limited Documentation [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	4	6	17	14
Pre-modification recorded investment	$ 515	$ 827	$ 3,724	$ 2,415
Post- modification	550	963	3,970	2,675
Residential Limited Documentation [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	383	470	618	803
Residential Limited Documentation [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 167	$ 493	$ 3,352	$ 1,872
Home Equity Lines and Loans [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	25	26	85	84
Pre-modification recorded investment	$ 2,154	$ 2,552	$ 7,885	$ 9,189
Post- modification	2,237	2,552	7,973	9,189
Home Equity Lines and Loans [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	461	251	1,040	655
Home Equity Lines and Loans [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Post- modification			491
Home Equity Lines and Loans [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 1,776	$ 2,301	$ 6,442	$ 8,534
Automobile [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	17	10	59	148
Pre-modification recorded investment	$ 342	$ 186	$ 1,160	$ 1,005
Post- modification	342	186	1,160	1,005
Automobile [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	326	$ 186	1,089	865
Automobile [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Post- modification				55
Automobile [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 16		$ 71	$ 85
Other [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification	1	1	6	78
Pre-modification recorded investment	$ 5	$ 26	$ 85	$ 1,192
Post- modification	5	26	85	1,192
Other [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification	$ 5	$ 26	$ 85	951
Other [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Post- modification				45
Other [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification				$ 196
Residential Builder and Developer [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification			3	3
Pre-modification recorded investment			$ 12,291	$ 23,905
Post- modification			10,879	22,958
Residential Builder and Developer [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification				$ 22,958
Residential Builder and Developer [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification			$ 10,879
Other Commercial Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of modifications | Modification			2	2
Pre-modification recorded investment			$ 168	$ 374
Post- modification			168	374
Other Commercial Construction [Member] | Principal Deferral [Member]
Financing Receivable, Modifications [Line Items]
Post- modification			$ 168	250
Other Commercial Construction [Member] | Combination of Concession Types [Member]
Financing Receivable, Modifications [Line Items]
Post- modification				$ 124

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Borrowings - Additional Information (Detail) - USD ($) $ in Millions			1 Months Ended	9 Months Ended
	Aug. 31, 2017	Jun. 30, 2017	May 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Junior subordinated debentures				$ 519
Debt Maturity, Start Year				Jan. 01, 2027
Debt Maturity, End Year				Dec. 31, 2033
Agreements to repurchase securities				$ 425	$ 1,100
Collateral posted				$ 445	$ 1,100
Bank Note Program [Member]
Debt Instrument [Line Items]
Senior notes			$ 900
Debt instrument maturity year			May 31, 2022
Bank Note Program Fixed Interest Rate [Member]
Debt Instrument [Line Items]
Senior notes			$ 650
Fixed interest rate			2.50%
Fixed Rate Senior Notes Due August 2020 [Member]
Debt Instrument [Line Items]
Senior notes	$ 750
Fixed interest rate	2.05%
Debt instrument maturity year	Aug. 31, 2020
Debt instrument maturity period	3 years
Fixed Rate Subordinated Notes Due August 2027 [Member]
Debt Instrument [Line Items]
Fixed interest rate	3.40%
Debt instrument maturity year	Aug. 31, 2027
Debt instrument maturity period	10 years
Subordinated notes	$ 500
London Interbank Offered Rate (LIBOR) [Member] | Bank Note Program Variable Interest Rate [Member]
Debt Instrument [Line Items]
Senior notes			$ 250
Fixed Rate Senior Notes [Member]
Debt Instrument [Line Items]
Fixed interest rate		1.40%
Debt instrument maturity year		Jul. 25, 2017
Repayments of senior notes		$ 750
Debt instrument, redemption, description				The notes had a maturity date of July 25, 2017 and were redeemable on or after the 30th day prior to the maturity date.

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Shareholders' Equity - Additional Information (Detail) - $ / shares	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
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] | Assumed In Acquisition [Member]
Class of Stock [Line Items]
Exercise price of each class of warrants or rights outstanding	$ 518.47
Warrant to purchase common stock	95,472
Warrants, year of expiration	2018

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Shareholders' Equity - Issued and Outstanding Preferred Stock (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Carrying Value	$ 1,231,500	$ 1,231,500
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
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 F Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, Shares Issued	50,000	50,000
Preferred stock, Shares Outstanding	50,000	50,000
Carrying Value	$ 500,000	$ 500,000

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Shareholders' Equity - Issued and Outstanding Preferred Stock (Parenthetical) (Detail) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Series A Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock dividend rate	6.375%	6.375%
Exercise price of each class of warrants or rights outstanding	$ 73.79	$ 73.79
Warrants and rights outstanding	327,358
Warrants, year of expiration	2018	2018
Series C Fixed Rate Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock dividend rate	6.375%	6.375%
Series E Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Preferred stock dividend rate	6.45%	6.45%
Date of change in the dividend rate	Feb. 14, 2024	Feb. 14, 2024
London Interbank offered rate plus basis points	3.61%	3.61%
Preferred shares redemption date	Feb. 15, 2024	Feb. 15, 2024
Preferred Stock, Redemption Feature, Redemption Term	90 days	90 days
Series F Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, liquidation preference per share	$ 10,000	$ 10,000
Preferred stock dividend rate	5.125%	5.125%
Date of change in the dividend rate	Oct. 31, 2026	Oct. 31, 2026
London Interbank offered rate plus basis points	3.52%	3.52%
Preferred shares redemption date	Nov. 01, 2026	Nov. 01, 2026
Preferred Stock, Redemption Feature, Redemption Term	90 days	90 days

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Pension Plans and Other Postretirement Benefits - Net Periodic Defined Benefit Cost for Defined Benefit Plans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5,048	$ 6,259	$ 15,145	$ 18,778
Interest cost on projected benefit obligation	19,818	20,853	59,452	62,558
Expected return on plan assets	(27,131)	(27,118)	(81,393)	(81,355)
Amortization of prior service cost (credit)	139	(807)	418	(2,421)
Amortization of net actuarial loss (gain)	7,316	7,536	21,947	22,609
Net periodic benefit cost	5,190	6,723	15,569	20,169
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	293	399	878	1,197
Interest cost on projected benefit obligation	929	1,242	2,787	3,728
Amortization of prior service cost (credit)	(340)	(339)	(1,019)	(1,019)
Amortization of net actuarial loss (gain)	(247)	15	(741)	45
Net periodic benefit cost	$ 635	$ 1,317	$ 1,905	$ 3,951

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Pension Plans and Other Postretirement Benefits - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Compensation And Retirement Disclosure [Abstract]
Defined contribution pension and retirement savings plans total expense	$ 16,085,000	$ 14,783,000	$ 53,127,000	$ 47,747,000

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Earnings Per Common Share - Computations of Basic Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income available to common shareholders:
Net income	$ 355,923	$ 349,984	$ 1,085,903	$ 984,543
Less: Preferred stock dividends	(18,130)	(20,318)	(54,604)	(60,953)
Net income available to common equity	337,793	329,666	1,031,299	923,590
Less: Income attributable to unvested stock-based compensation awards	(1,992)	(2,674)	(6,288)	(7,920)
Net income available to common shareholders	$ 335,801	$ 326,992	$ 1,025,011	$ 915,670
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards	152,245	156,767	153,814	158,710
Less: Unvested stock-based compensation awards	(898)	(1,274)	(948)	(1,374)
Weighted-average shares outstanding	151,347	155,493	152,866	157,336
Basic earnings per common share	$ 2.22	$ 2.10	$ 6.71	$ 5.82

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Earnings Per Common Share - Computations of Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income available to common equity	$ 337,793	$ 329,666	$ 1,031,299	$ 923,590
Less: Income attributable to unvested stock-based compensation awards	(1,989)	(2,668)	(6,276)	(7,904)
Net income available to common shareholders	$ 335,804	$ 326,998	$ 1,025,023	$ 915,686
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards	152,245	156,767	153,814	158,710
Less: Unvested stock-based compensation awards	(898)	(1,274)	(948)	(1,374)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock	344	533	427	507
Adjusted weighted-average shares outstanding	151,691	156,026	153,293	157,843
Diluted earnings per common share	$ 2.21	$ 2.10	$ 6.69	$ 5.80

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Earnings Per Common Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per share	408,657	2,015,870	404,487	2,513,288

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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	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, before tax			$ (485,245)	$ (414,545)
Unrealized holding gains (losses), before tax			53,221	235,666
Foreign currency translation adjustment, before tax			3,829	(2,836)
Unrealized losses on cash flow hedges, before tax			(1,076)
Total other comprehensive income (loss) before reclassifications, before tax			55,974	232,830
Amortization of unrealized holding losses on held-to-maturity (“HTM”) securities, before tax			2,535	2,998
(Gains) losses realized in net income, before tax			17	(28,748)
Accretion of net gain (losses) on terminated cash flow hedges, before tax			(109)	(116)
Net yield adjustment from cash flow hedges currently in effect, before tax			(2,275)
Amortization of prior service credit, before tax			(601)	(3,440)
Amortization of actuarial losses, before tax			21,206	22,654
Total reclassifications, before tax			20,773	(6,652)
Total gain (loss) during the period, before tax			76,747	226,178
Ending balance, before tax	$ (408,498)	$ (188,367)	(408,498)	(188,367)
Beginning balance, tax			190,609	162,918
Unrealized holding gains (losses), tax			(20,934)	(92,714)
Foreign currency translation adjustment, tax			(1,340)	989
Unrealized losses on cash flow hedges, tax			424
Total other comprehensive income (loss) before reclassifications, tax			(21,850)	(91,725)
Amortization of unrealized holding losses on held-to-maturity (“HTM”) securities, tax			(998)	(1,180)
(Gains) losses realized in net income, before tax			(7)	11,309
Accretion of net gain (losses) on terminated cash flow hedges, tax			43	46
Net yield adjustment from cash flow hedges currently in effect, tax			895
Amortization of prior service credit, tax			236	1,354
Amortization of actuarial losses, tax			(8,345)	(8,914)
Total reclassifications, tax			(8,176)	2,615
Total gain (loss) during the period, tax			(30,026)	(89,110)
Ending balance, tax	160,583	73,808	160,583	73,808
Total other comprehensive income (loss) before reclassifications, tax			(21,850)	(91,725)
Beginning balance, net of tax			(294,636)	(251,627)
Unrealized holding gains (losses), net			32,287	142,952
Foreign currency translation adjustment, net of tax	863	(229)	2,489	(1,847)
Unrealized losses on cash flow hedges, net of tax			(652)
Total other comprehensive income (loss) before reclassifications, net of tax			34,124	141,105
Amortization of unrealized holding losses on held-to-maturity (“HTM”) securities, net of tax			1,537	1,818
(Gains) losses realized in net income, before tax			10	(17,439)
Accretion of net gain on terminated cash flow hedges, net of tax			(66)	(70)
Net yield adjustment from cash flow hedges currently in effect, net of tax			(1,380)
Amortization of prior service credit, net of tax			(365)	(2,086)
Amortization of actuarial losses, net of tax			12,861	13,740
Total reclassifications, net of tax			12,597	(4,037)
Total other comprehensive income (loss)	22,166	(13,538)	46,721	137,068
Ending balance, net of tax	(247,915)	(114,559)	(247,915)	(114,559)
Investment Securities With OTTI [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, before tax			46,725	16,359
Unrealized holding gains (losses), before tax			(7,365)	1,228
Total other comprehensive income (loss) before reclassifications, before tax			(7,365)	1,228
(Gains) losses realized in net income, before tax			(50)
Total reclassifications, before tax			(50)
Total gain (loss) during the period, before tax			(7,415)	1,228
Ending balance, before tax	39,310	17,587	39,310	17,587
Investment Securities All Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, before tax			(73,785)	62,849
Unrealized holding gains (losses), before tax			60,586	234,438
Total other comprehensive income (loss) before reclassifications, before tax			60,586	234,438
Amortization of unrealized holding losses on held-to-maturity (“HTM”) securities, before tax			2,535	2,998
(Gains) losses realized in net income, before tax			67	(28,748)
Total reclassifications, before tax			2,602	(25,750)
Total gain (loss) during the period, before tax			63,188	208,688
Ending balance, before tax	(10,597)	271,537	(10,597)	271,537
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, before tax			(449,917)	(489,660)
Amortization of prior service credit, before tax			(601)	(3,440)
Amortization of actuarial losses, before tax			21,206	22,654
Total reclassifications, before tax			20,605	19,214
Total gain (loss) during the period, before tax			20,605	19,214
Ending balance, before tax	(429,312)	(470,446)	(429,312)	(470,446)
Total other comprehensive income (loss)			12,496
Other [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance, before tax			(8,268)	(4,093)
Foreign currency translation adjustment, before tax			3,829	(2,836)
Unrealized losses on cash flow hedges, before tax			(1,076)
Total other comprehensive income (loss) before reclassifications, before tax			2,753	(2,836)
Accretion of net gain (losses) on terminated cash flow hedges, before tax			(109)	(116)
Net yield adjustment from cash flow hedges currently in effect, before tax			(2,275)
Total reclassifications, before tax			(2,384)	(116)
Total gain (loss) during the period, before tax			369	(2,952)
Ending balance, before tax	$ (7,899)	$ (7,045)	$ (7,899)	$ (7,045)

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Comprehensive Income - Accumulated Other Comprehensive Income (Loss), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 16,486,622	$ 16,173,289
Net gain (loss) during period	$ 22,166	$ (13,538)	46,721	137,068
Ending balance	16,318,052	16,340,976	16,318,052	16,340,976
Investment Securities With OTTI [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			28,338
Net gain (loss) during period			(4,496)
Ending balance	23,842		23,842
Investment Securities All Other [Member] | Investment Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(44,657)
Net gain (loss) during period			38,330
Ending balance	(6,327)		(6,327)
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(272,874)
Net gain (loss) during period			12,496
Ending balance	(260,378)		(260,378)
Accumulated Other Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(5,443)
Net gain (loss) during period			391
Ending balance	(5,052)		(5,052)
Accumulated Other Comprehensive Income (Loss), Net [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			(294,636)	(251,627)
Net gain (loss) during period			46,721
Ending balance	$ (247,915)	$ (114,559)	$ (247,915)	$ (114,559)

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Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading account purposes	$ 6,950,000,000		$ 6,950,000,000
Net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans	27,000,000		27,000,000		$ 28,000,000
Aggregate fair value of derivative financial instruments in a liability position	17,000,000		17,000,000		34,000,000
Net liability positions with counterparties	17,000,000		17,000,000		30,000,000
Aggregate fair value of derivative financial instruments in asset position	7,000,000		7,000,000		15,000,000
Net fair value of derivative financial instruments in a net asset position	7,000,000		7,000,000		11,000,000
Collateral relating to net asset positions	5,000,000		5,000,000		9,000,000
Counterparties [Member]
Derivative [Line Items]
Post collateral requirements relating to positions	18,000,000		18,000,000		27,000,000
Clearinghouse Credit Facilities [Member]
Derivative [Line Items]
Amount of initial margin posted	49,000,000		49,000,000		111,000,000
Net fair value of derivative financial instruments in a net asset position	1,000,000		1,000,000		63,000,000
Collateral relating to net asset positions	1,000,000		1,000,000		81,000,000
Reduction in the fair value of derivative asset due to contractual settlements			(89,000,000)
Reduction in the fair value of derivative liability due to contractual settlements			(45,000,000)
Interest Rate Swap Agreements [Member]
Derivative [Line Items]
Increase in net interest income due to interest rate swap agreements	7,000,000	$ 9,000,000	18,000,000	$ 30,000,000
Interest Rate Contracts [Member]
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading account purposes	15,500,000,000		15,500,000,000		21,600,000,000
Foreign Currency and Other Option and Futures Contracts [Member]
Derivative [Line Items]
Notional amounts of derivative contracts entered into for trading account purposes	545,000,000		545,000,000		$ 471,000,000
Credit Risk Derivative [Member]
Derivative [Line Items]
Amount of initial margin posted	0		0
Fair value of additional collateral to be posted for derivative financial instruments	0		0
Credit Risk Derivative [Member] | Maximum [Member]
Derivative [Line Items]
Aggregate fair value of derivative financial instruments in a net liability position	$ 1,000,000		$ 1,000,000

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Derivative Financial Instruments - Information about Interest Rate Swap Agreements (Detail) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Notional Amount	$ 6,950,000,000
Average Maturity (in years)	2 years 6 months
Estimated Fair Value Gain (Loss)	$ 697,000
Variable Rate Commercial Real Estate Loans [Member] | Cash Flow Hedges [Member]
Derivative [Line Items]
Notional Amount	$ 2,000,000,000
Average Maturity (in years)	1 year 7 months 6 days
Weighted-Average Rate, Fixed	1.46%
Weighted-Average Rate, Variable	1.24%
Fixed Rate Long-Term Borrowings [Member] | Fair Value Hedges [Member]
Derivative [Line Items]
Notional Amount	$ 4,950,000,000	$ 900,000,000
Average Maturity (in years)	2 years 10 months 25 days	1 year 1 month 6 days
Weighted-Average Rate, Fixed	2.63%	3.75%
Weighted-Average Rate, Variable	2.04%	2.08%
Estimated Fair Value Gain (Loss)	$ 697,000	$ 11,892,000

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Derivative Financial Instruments - Information about Interest Rate Swap Agreements (Parenthetical) (Detail) $ in Millions	Sep. 30, 2017 USD ($)
Fair Value Hedges [Member]
Derivative [Line Items]
Reduction of estimated fair value losses on hedging instruments	$ 12.2
Cash Flow Hedges [Member]
Derivative [Line Items]
Reduction of estimated fair value losses on hedging instruments	$ 3.4

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	$ 131,831	$ 295,069
Liability Derivatives, Fair Value	113,808	176,857
Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	3,715	45,081
Liability Derivatives, Fair Value	2,902	1,347
Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	128,116	249,988
Liability Derivatives, Fair Value	110,906	175,510
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	2,048	11,892
Liability Derivatives, Fair Value	1,351
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	3,153	5,210
Liability Derivatives, Fair Value	936	399
Commitments to Sell Real Estate Loans [Member] | Fair Value Hedges [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	1,667	33,189
Liability Derivatives, Fair Value	1,551	1,347
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	13,962	8,060
Liability Derivatives, Fair Value	240	735
Interest Rate Contracts [Member] | Derivatives Not Designated and Qualifying as Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives, Fair Value	104,178	228,810
Liability Derivatives, Fair Value	103,825	167,737
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	6,823	7,908
Liability Derivatives, Fair Value	$ 5,905	$ 6,639

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet (Parenthetical) (Detail) $ in Millions	Sep. 30, 2017 USD ($)
Offsetting [Abstract]
Reduction in estimated fair value of interest rate swaps in asset position	$ 89.3
Reduction in estimated fair value of interest rate swaps in liability position	$ 29.2

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Derivative Financial Instruments - Information about Fair Values of Derivative Instruments in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	$ 944	$ 6,568	$ 7,129	$ 16,993
Interest Rate Swap Agreements [Member] | Fixed Rate Long-Term Borrowings [Member] | Derivatives Designated and Qualifying as Hedging Instruments [Member] | Fair Value Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives in fair value hedging relationships, Derivatives	(13,509)	(12,588)	(23,423)	(22,832)
Derivatives in fair value hedging relationships, Hedged item	14,026	12,587	23,049	21,603
Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	(418)	4,822	2,363	11,578
Foreign Exchange and Other Option and Futures Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives not designated as hedging instruments, Derivatives	$ 1,362	$ 1,746	$ 4,766	$ 5,415

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Variable Interest Entities and Asset Securitizations - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Variable Interest Entity Disclosure [Abstract]
Other assets for its "investment" in the common securities recognized by the company of various trusts	$ 24,000,000		$ 24,000,000		$ 24,000,000
Total assets of partnerships in which the company invested	1,000,000,000		1,000,000,000		1,000,000,000
Maximum exposure to loss of investments in real estate partnerships	329,000,000		329,000,000		294,000,000
Unfunded commitments included in company's maximum exposure to loss of investments in real estate partnerships	118,000,000		118,000,000		$ 102,000,000
Investments amortized to income tax expense	11,000,000	$ 13,000,000	35,000,000	$ 34,000,000
Federal tax credits and other federal tax benefits recognized	$ 16,000,000	$ 18,000,000	$ 47,000,000	$ 46,000,000

XML

Fair Value Measurements - Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading account assets	$ 170,516	$ 323,867
Investment securities	11,416,824	13,332,072
U.S. Treasury and Federal Agencies [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	2,007,117	1,902,544
Obligations of States and Political Subdivisions [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	2,678	3,641
Government Issued or Guaranteed [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	9,184,483	10,954,861
Other Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	128,530	118,516
Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	93,986	352,466
Fair Value Measurements, Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading account assets	170,516	323,867
Investment securities	11,416,824	13,332,072
Real estate loans held for sale	571,199	1,056,180
Other assets	20,830	58,351
Total assets	12,179,369	14,770,470
Trading account liabilities	109,730	174,376
Other liabilities	4,078	2,481
Total liabilities	113,808	176,857
Fair Value Measurements, Recurring [Member] | 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	47,927	46,135
Investment securities	50,917	301,711
Total assets	98,844	347,846
Fair Value Measurements, Recurring [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Trading account assets	122,589	277,732
Investment securities	11,365,877	13,030,317
Real estate loans held for sale	571,199	1,056,180
Other assets	6,868	50,291
Total assets	12,066,533	14,414,520
Trading account liabilities	109,730	174,376
Other liabilities	3,838	1,746
Total liabilities	113,568	176,122
Fair Value Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	30	44
Other assets	13,962	8,060
Total assets	13,992	8,104
Other liabilities	240	735
Total liabilities	240	735
Fair Value Measurements, Recurring [Member] | U.S. Treasury and Federal Agencies [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	2,007,117	1,902,544
Fair Value Measurements, Recurring [Member] | U.S. Treasury and Federal Agencies [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	2,007,117	1,902,544
Fair Value Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	2,678	3,641
Fair Value Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	2,678	3,641
Fair Value Measurements, Recurring [Member] | Government Issued or Guaranteed [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	9,184,483	10,954,861
Fair Value Measurements, Recurring [Member] | Government Issued or Guaranteed [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	9,184,483	10,954,861
Fair Value Measurements, Recurring [Member] | Privately Issued Mortgage-Backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	30	44
Fair Value Measurements, Recurring [Member] | Privately Issued Mortgage-Backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	30	44
Fair Value Measurements, Recurring [Member] | Other Debt Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	128,530	118,516
Fair Value Measurements, Recurring [Member] | Other Debt Securities [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	128,530	118,516
Fair Value Measurements, Recurring [Member] | Equity Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	93,986	352,466
Fair Value Measurements, Recurring [Member] | Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	50,917	301,711
Fair Value Measurements, Recurring [Member] | Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Investment securities	$ 43,069	$ 50,755

XML

Fair Value Measurements - Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis (Detail) - Fair Value Measurements, Recurring [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Privately Issued [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 35	$ 57	$ 44	$ 74
Total gains (losses) realized/unrealized:
Settlements	(5)	(6)	(14)	(23)
Ending Balance	30	51	30	51
Other Assets and Other Liabilities [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance	12,425	21,383	7,325	9,879
Total gains (losses) realized/unrealized:
Included in earnings	22,313	45,534	65,824	104,862
Transfers in and/or out of Level 3 (a)	(21,016)	(37,117)	(59,427)	(84,941)
Ending Balance	13,722	29,800	13,722	29,800
Changes in unrealized gains included in earnings related to assets still held at end of period	$ 12,659	27,663	$ 13,684	29,288
Collateralized Debt Obligations [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance		43,305		47,393
Total gains (losses) realized/unrealized:
Included in earnings		28,475		28,475
Included in other comprehensive income		(15,050)		(18,268)
Sales		$ (56,730)		(56,730)
Settlements				$ (870)

XML

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Discount rates for fair value estimations			15.00%
Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Discount rates for fair value estimations			90.00%
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	$ 16	$ 20	$ 55	$ 42
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	184	249	184	249	$ 293
Assets taken in foreclosure of defaulted loans measured at fair value on a nonrecurring basis	36	53	36	53
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	105	144	105	144	153
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	$ 79	$ 105	$ 79	$ 105	$ 140

XML

Fair Value Measurements - Quantitative Information Related to Significant Unobservable Inputs (Detail) - Fair Value Measurements, Recurring [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Privately Issued [Member] | Two Independent Pricing Quotes [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Recurring fair value measurements for certain Level 3 Assets and Liabilities	$ 30	$ 44
Other Assets and Other Liabilities [Member] | Discounted Cash Flows [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Recurring fair value measurements for certain Level 3 Assets and Liabilities	$ 13,722	$ 7,325
Other Assets and Other Liabilities [Member] | Discounted Cash Flows [Member] | Minimum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Commitment expirations	0.00%	0.00%
Other Assets and Other Liabilities [Member] | Discounted Cash Flows [Member] | Maximum [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Commitment expirations	80.00%	77.00%
Other Assets and Other Liabilities [Member] | Discounted Cash Flows [Member] | Weighted Average [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items]
Commitment expirations	28.00%	30.00%

XML

Fair Value Measurements - Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities) (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Financial assets:
Cash and cash equivalents	$ 1,368,252		$ 1,320,549	$ 1,332,202		$ 1,368,040
Interest-bearing deposits at banks	6,306,484		5,000,638
Trading account assets	170,516		323,867
Investment securities	15,073,926		16,250,468
Loans and leases:
Allowance for credit losses	(1,013,326)	$ (1,008,225)	(988,997)	$ (976,121)	$ (970,496)	$ (955,992)
Loans and leases, net	86,911,808		89,864,419
Financial liabilities:
Noninterest-bearing deposits	(33,111,246)		(32,813,896)
Savings and interest-checking deposits	(52,936,615)		(52,346,207)
Time deposits	(7,233,518)		(10,131,846)
Deposits at Cayman Islands office	(232,014)		(201,927)
Short-term borrowings	(200,768)		(163,442)
Long-term borrowings	(8,577,645)		(9,493,835)
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	1,368,252		1,320,549
Interest-bearing deposits at banks	6,306,484		5,000,638
Trading account assets	170,516		323,867
Investment securities	15,073,926		16,250,468
Loans and leases:
Commercial loans and leases	21,743,251		22,610,047
Commercial real estate loans	32,914,288		33,506,394
Residential real estate loans	20,265,162		22,590,912
Consumer loans	13,002,433		12,146,063
Allowance for credit losses	(1,013,326)		(988,997)
Loans and leases, net	86,911,808		89,864,419
Accrued interest receivable	325,982		308,805
Financial liabilities:
Noninterest-bearing deposits	(33,111,246)		(32,813,896)
Savings and interest-checking deposits	(52,936,615)		(52,346,207)
Time deposits	(7,233,518)		(10,131,846)
Deposits at Cayman Islands office	(232,014)		(201,927)
Short-term borrowings	(200,768)		(163,442)
Long-term borrowings	(8,577,645)		(9,493,835)
Accrued interest payable	(69,290)		(75,172)
Trading account liabilities	(109,730)		(174,376)
Other financial instruments:
Commitments to originate real estate loans for sale	13,722		7,325
Commitments to sell real estate loans	2,333		36,653
Other credit-related commitments	(119,938)		(136,295)
Interest rate swap agreements used for interest rate risk management	697		11,892
Estimate Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,368,252		1,320,549
Interest-bearing deposits at banks	6,306,484		5,000,638
Trading account assets	170,516		323,867
Investment securities	15,079,756		16,244,412
Loans and leases:
Commercial loans and leases	21,409,984		22,239,428
Commercial real estate loans	32,507,319		33,129,428
Residential real estate loans	20,369,392		22,638,167
Consumer loans	12,935,924		12,061,590
Loans and leases, net	87,222,619		90,068,613
Accrued interest receivable	325,982		308,805
Financial liabilities:
Noninterest-bearing deposits	(33,111,246)		(32,813,896)
Savings and interest-checking deposits	(52,936,615)		(52,346,207)
Time deposits	(7,294,182)		(10,222,585)
Deposits at Cayman Islands office	(232,014)		(201,927)
Short-term borrowings	(200,768)		(163,442)
Long-term borrowings	(8,630,195)		(9,473,844)
Accrued interest payable	(69,290)		(75,172)
Trading account liabilities	(109,730)		(174,376)
Other financial instruments:
Commitments to originate real estate loans for sale	13,722		7,325
Commitments to sell real estate loans	2,333		36,653
Other credit-related commitments	(119,938)		(136,295)
Interest rate swap agreements used for interest rate risk management	697		11,892
Estimate Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets:
Cash and cash equivalents	1,290,532		1,249,654
Trading account assets	47,927		46,135
Investment securities	50,917		301,711
Estimate Fair Value [Member] | Significant Observable Inputs (Level 2) [Member]
Financial assets:
Cash and cash equivalents	77,720		70,895
Interest-bearing deposits at banks	6,306,484		5,000,638
Trading account assets	122,589		277,732
Investment securities	14,916,360		15,821,176
Loans and leases:
Commercial real estate loans	223,659		642,590
Residential real estate loans	4,557,929		4,912,488
Loans and leases, net	4,781,588		5,555,078
Accrued interest receivable	325,982		308,805
Financial liabilities:
Noninterest-bearing deposits	(33,111,246)		(32,813,896)
Savings and interest-checking deposits	(52,936,615)		(52,346,207)
Time deposits	(7,294,182)		(10,222,585)
Deposits at Cayman Islands office	(232,014)		(201,927)
Short-term borrowings	(200,768)		(163,442)
Long-term borrowings	(8,630,195)		(9,473,844)
Accrued interest payable	(69,290)		(75,172)
Trading account liabilities	(109,730)		(174,376)
Other financial instruments:
Commitments to sell real estate loans	2,333		36,653
Interest rate swap agreements used for interest rate risk management	697		11,892
Estimate Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets:
Investment securities	112,479		121,525
Loans and leases:
Commercial loans and leases	21,409,984		22,239,428
Commercial real estate loans	32,283,660		32,486,838
Residential real estate loans	15,811,463		17,725,679
Consumer loans	12,935,924		12,061,590
Loans and leases, net	82,441,031		84,513,535
Other financial instruments:
Commitments to originate real estate loans for sale	13,722		7,325
Other credit-related commitments	$ (119,938)		$ (136,295)

XML

Commitments and Contingencies - Company's Significant Commitments (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Commitments to extend credit
Home equity lines of credit	$ 5,492,892	$ 5,499,609
Commercial real estate loans to be sold	170,786	70,100
Other commercial real estate	5,749,428	6,451,709
Residential real estate loans to be sold	482,650	478,950
Other residential real estate	202,702	232,721
Commercial and other	12,677,838	12,298,473
Standby letters of credit	2,657,352	2,987,091
Commercial letters of credit	42,684	44,723
Financial guarantees and indemnification contracts	3,385,498	3,043,580
Commitments to sell real estate loans	$ 1,052,472	$ 1,489,237

XML

Commitments and Contingencies - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Loss Contingencies [Line Items]
Maximum credit risk for recourse associated with loans sold under Federal National Mortgage Association Delegated Underwriting and Servicing program	$ 3,200,000,000	$ 2,800,000,000
Minimum [Member]
Loss Contingencies [Line Items]
Range of reasonably possible losses	0
Maximum [Member]
Loss Contingencies [Line Items]
Range of reasonably possible losses	$ 50,000,000

XML

Segment Information - Summary of Reclassified Segment Information on Comparable Basis (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net income	$ 355,923	$ 349,984	$ 1,085,903	$ 984,543
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	1,416,563	1,349,690	4,176,684	3,954,660
Business Banking [Member]
Segment Reporting Information [Line Items]
Net income	31,408	24,024	85,146	77,340
Business Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	130,501	120,901	375,816	357,584
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income	109,797	102,704	328,211	309,264
Commercial Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	267,822	268,528	818,846	787,358
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income	97,295	90,065	269,113	254,682
Commercial Real Estate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	212,014	205,562	604,437	575,117
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income	31,515	45,551	95,200	134,575
Discretionary Portfolio [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	65,808	105,585	216,798	295,620
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income	13,546	15,865	37,206	43,055
Residential Mortgage Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	90,018	96,675	264,120	280,854
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income	96,329	74,753	282,614	219,234
Retail Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	392,542	361,864	1,144,964	1,062,923
All Other [Member]
Segment Reporting Information [Line Items]
Net income	(23,967)	(2,978)	(11,587)	(53,607)
All Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	$ 257,858	190,575	$ 751,703	595,204
As Previously Reported [Member]
Segment Reporting Information [Line Items]
Net income		349,984		984,543
As Previously Reported [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		1,349,690		3,954,660
As Previously Reported [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Net income		21,422		69,617
As Previously Reported [Member] | Business Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		116,513		344,562
As Previously Reported [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income		102,796		309,515
As Previously Reported [Member] | Commercial Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		268,683		787,781
As Previously Reported [Member] | Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net income		90,065		254,682
As Previously Reported [Member] | Commercial Real Estate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		205,562		575,117
As Previously Reported [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income		50,773		151,522
As Previously Reported [Member] | Discretionary Portfolio [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		114,391		324,195
As Previously Reported [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income		22,924		59,981
As Previously Reported [Member] | Residential Mortgage Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		108,576		309,393
As Previously Reported [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income		69,506		204,291
As Previously Reported [Member] | Retail Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		353,016		1,037,727
As Previously Reported [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Net income		(7,502)		(65,065)
As Previously Reported [Member] | All Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		182,949		575,885
Impact of Changes [Member] | Business Banking [Member]
Segment Reporting Information [Line Items]
Net income		2,602		7,723
Impact of Changes [Member] | Business Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		4,388		13,022
Impact of Changes [Member] | Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net income		(92)		(251)
Impact of Changes [Member] | Commercial Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		(155)		(423)
Impact of Changes [Member] | Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net income		(5,222)		(16,947)
Impact of Changes [Member] | Discretionary Portfolio [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		(8,806)		(28,575)
Impact of Changes [Member] | Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net income		(7,059)		(16,926)
Impact of Changes [Member] | Residential Mortgage Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		(11,901)		(28,539)
Impact of Changes [Member] | Retail Banking [Member]
Segment Reporting Information [Line Items]
Net income		5,247		14,943
Impact of Changes [Member] | Retail Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		8,848		25,196
Impact of Changes [Member] | All Other [Member]
Segment Reporting Information [Line Items]
Net income		4,524		11,458
Impact of Changes [Member] | All Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues		$ 7,626		$ 19,319

XML

Segment Information - Information about Company's Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Net Income (Loss)	$ 355,923	$ 349,984	$ 1,085,903	$ 984,543
Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	1,416,563	1,349,690	4,176,684	3,954,660
Business Banking [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	31,408	24,024	85,146	77,340
Business Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	130,501	120,901	375,816	357,584
Business Banking [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	919	1,086	2,836	3,274
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	109,797	102,704	328,211	309,264
Commercial Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	267,822	268,528	818,846	787,358
Commercial Banking [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	840	950	2,603	2,917
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	97,295	90,065	269,113	254,682
Commercial Real Estate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	212,014	205,562	604,437	575,117
Commercial Real Estate [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	401	463	1,165	1,299
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	31,515	45,551	95,200	134,575
Discretionary Portfolio [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	65,808	105,585	216,798	295,620
Discretionary Portfolio [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	(12,346)	(14,795)	(37,670)	(43,726)
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	13,546	15,865	37,206	43,055
Residential Mortgage Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	90,018	96,675	264,120	280,854
Residential Mortgage Banking [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	18,866	22,051	55,221	62,955
Retail Banking [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	96,329	74,753	282,614	219,234
Retail Banking [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	392,542	361,864	1,144,964	1,062,923
Retail Banking [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	2,668	3,052	8,760	9,198
All Other [Member]
Segment Reporting Information [Line Items]
Net Income (Loss)	(23,967)	(2,978)	(11,587)	(53,607)
All Other [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total Revenues	257,858	190,575	751,703	595,204
All Other [Member] | Intersegment Activity Eliminated in Consolidated Totals [Member]
Segment Reporting Information [Line Items]
Total Revenues	$ (11,348)	$ (12,807)	$ (32,915)	$ (35,917)

XML

Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Segment Reporting Information [Line Items]
Average Assets	$ 121,073	$ 124,340	$ 123,897
Business Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	5,596	5,456	5,442
Commercial Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	26,699	25,592	25,363
Commercial Real Estate [Member]
Segment Reporting Information [Line Items]
Average Assets	22,800	21,131	20,571
Discretionary Portfolio [Member]
Segment Reporting Information [Line Items]
Average Assets	37,807	40,867	41,253
Residential Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	2,335	2,569	2,578
Retail Banking [Member]
Segment Reporting Information [Line Items]
Average Assets	12,519	11,840	11,739
All Other [Member]
Segment Reporting Information [Line Items]
Average Assets	$ 13,317	$ 16,885	$ 16,951

XML

Segment Information - Summary of Segment Information (Parenthetical) (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting [Abstract]
Taxable-equivalent adjustment	$ 8,828,000	$ 6,725,000	$ 25,563,000	$ 19,579,000

XML

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017	Apr. 28, 2017	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Loan facility carrying amount	$ 8,577,645		$ 8,577,645				$ 9,493,835
Bayview Lending Group [Member]
Schedule of Equity Method Investments [Line Items]
Minority interest in Bayview Lending Group LLC	20.00%		20.00%
Carrying value of minority interest investment in Bayview Lending Group LLC	$ 0		$ 0
Bayview Lending Group and Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Outstanding principal balances of mortgage servicing rights	3,200,000		3,200,000				3,500,000
Revenues from servicing	4,000	$ 5,000	13,000	$ 15,000
Bayview Financial [Member]
Schedule of Equity Method Investments [Line Items]
Outstanding principal balances of residential mortgage loans from Bayview Financial	59,300,000		59,300,000				30,400,000
Revenues from sub-servicing	26,000	$ 25,000	74,000	$ 73,000
Investment securities in held-to-maturity portfolio securitized by Bayview Financial	141,000		141,000				$ 158,000
Loan to Bayview Financial						$ 100,000
Bayview Financial [Member] | Syndicated Loan Facility [Member]
Schedule of Equity Method Investments [Line Items]
Loan facility carrying amount					$ 750,000
Bayview Financial [Member] | Syndicated Loan Facility [Member] | M&T Bank [Member]
Schedule of Equity Method Investments [Line Items]
Loan facility carrying amount	$ 88,000		$ 88,000

XML

Recent Accounting Developments - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Minimum lease payments under non cancelable operating lease		$ 467
Adoption of New Accounting Guidance [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Reduction of Income tax expense	$ (18)