Earnings per common share

9 Months Ended

Sep. 30, 2020

7. Earnings per common share

The computations of basic earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2020			2019			2020			2019
	(In thousands, except per share)

Income available to common shareholders:
Net income	$	372,136			480,081			882,012			1,436,083
Less: Preferred stock dividends		(17,050	)		(16,103	)		(51,178	)		(52,364	)
Net income available to common equity		355,086			463,978			830,834			1,383,719
Less: Income attributable to unvested stock-based compensation awards		(1,687	)		(2,568	)		(3,631	)		(7,591	)
Net income available to common shareholders	$	353,399			461,410			827,203			1,376,128
Weighted-average shares outstanding:
Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		129,061			133,703			129,518			136,156
Less: Unvested stock-based compensation awards		(776	)		(738	)		(768	)		(745	)
Weighted-average shares outstanding		128,285			132,965			128,750			135,411

Basic earnings per common share	$	2.75			3.47			6.42			10.16

The computations of diluted earnings per common share follow:

	Three Months Ended September 30						Nine Months Ended September 30
	2020			2019			2020			2019
	(In thousands, except per share)

Net income available to common equity	$	355,086			463,978			830,834			1,383,719
Less: Income attributable to unvested stock-based compensation awards		(1,686	)		(2,568	)		(3,630	)		(7,590	)
Net income available to common shareholders	$	353,400			461,410			827,204			1,376,129
Adjusted weighted-average shares outstanding:
Common and unvested stock-based compensation awards		129,061			133,703			129,518			136,156
Less: Unvested stock-based compensation awards		(776	)		(738	)		(768	)		(745	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and warrants to purchase common stock		70			34			63			32
Adjusted weighted-average shares outstanding		128,355			132,999			128,813			135,443

Diluted earnings per common share	$	2.75			3.47			6.42			10.16

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 483,182 and 277,840 common shares during the three-month periods ended September 30, 2020 and 2019, respectively, and 477,144 and 224,639 common shares during the nine-month periods ended September 30, 2020 and 2019, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.