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Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.
12 Months Ended
Dec. 31, 2018
Text Block [Abstract]  
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.

 

24.    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 December 31, 2018 as a result of cumulative losses recognized and cash distributions received in prior years.  Income or losses recognized by M&T are included in other revenues from operations and totaled $24 million of income in 2018, compared with losses of $11 million in 2016.  Income recognized in 2017 was not significant.

Bayview Financial Holdings, L.P. (together with its affiliates, “Bayview Financial”), a privately-held specialty financial 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 $2.5 billion and $3.0 billion at December 31, 2018 and 2017, respectively. Revenues from those servicing rights were $14 million, $17 million and $19 million during 2018, 2017 and 2016, respectively. The Company sub-services residential mortgage loans for Bayview Financial having outstanding principal balances of $56.8 billion and $56.6 billion at December 31, 2018 and 2017, respectively. Revenues earned for sub-servicing loans for Bayview Financial were $114 million, $103 million and $98 million in 2018, 2017 and 2016, respectively. In addition, the Company held $113 million and $136 million of mortgage-backed securities in its held-to-maturity portfolio at December 31, 2018 and 2017, respectively, that were securitized by Bayview Financial.  At December 31, 2018, the Company held $127 million of Bayview Financial’s $900 million syndicated loan facility.