M&T Bank (MTB) 10-Q/A 3 Sep 09 2009 Q2 Quarterly report (amended) Financial data

Document and Company Informatio

Document and Company Information (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 24, 2009	Jun. 30, 2008
Document And Company Information [Abstract]
Entity Registrant Name	M&T BANK CORPORATION
Entity Central Index Key	0000036270
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	true
Amendment Description	Amended 10-Q
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$5,001,234,294
Entity Common Stock, Shares Outstanding		117,956,043

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Thousands	Jun. 30, 2009	Dec. 31, 2008
Assets
Cash and due from banks	$1,148,428	$1,546,804
Interest-bearing deposits at banks	59,950	10,284
Federal funds sold	2,300	21,347
Agreements to resell securities	0	90,000
Trading account	495,324	617,821
Investment securities (includes pledged securities that can be sold or repledged of 4,429,821 at June 30, 2009; $1,870,097 at December 31, 2008)
Available for sale (cost: $7,531,537 at June 30, 2009; $7,656,635 at December 31, 2008)	6,963,004	6,850,193
Held to maturity (fair value: $414,173 at June 30, 2009; $394,752 at December 31, 2008)	610,777	485,838
Other (fair value: $581,653 at June 30, 2009; $583,176 at December 31, 2008)	581,653	583,176
Total investment securities	8,155,434	7,919,207
Loans and leases	53,075,393	49,359,737
Unearned discount	(360,749)	(359,274)
Allowance for credit losses	(855,365)	(787,904)
Loans and leases, net	51,859,279	48,212,559
Premises and equipment	442,162	388,855
Goodwill	3,524,625	3,192,128
Core deposit and other intangible assets	216,072	183,496
Accrued interest and other assets	4,009,643	3,633,256
Total assets	69,913,217	65,815,757
Liabilities
Noninterest-bearing deposits	12,403,999	8,856,114
NOW accounts	1,162,023	1,141,308
Savings deposits	22,519,330	19,488,918
Time deposits	9,584,351	9,046,937
Deposits at foreign office	1,085,004	4,047,986
Total deposits	46,754,707	42,581,263
Federal funds purchased and agreements to repurchase securities	901,422	970,529
Other short-term borrowings	2,049,727	2,039,206
Accrued interest and other liabilities	1,238,959	1,364,879
Long-term borrowings	11,568,238	12,075,149
Total liabilities	62,513,053	59,031,026
Stockholders' equity
Preferred stock, par value $1.00, 1,000,000 shares authorized, 778,000 shares issued and oustanding at June 30, 2009; 600,000 shares issued and oustanding at December 31, 2008 (liquidation preference $1,000 per share)	725,472	567,463
Common stock, $.50 par, 250,000,000 shares authorized, 120,396,611 shares issued	60,198	60,198
Common stock issuable, 73,679 shares at June 30, 2009; 78,447 shares at December 31, 2008	4,244	4,617
Additional paid-in capital	2,448,851	2,897,907
Retained earnings	5,003,551	5,062,754
Accumulated other comprehensive income (loss), net	(580,756)	(736,881)
Treasury stock - common, at cost - 2,458,153 shares at June 30, 2009; 10,031,302 shares at December 31, 2008	(261,396)	(1,071,327)
Total stockholders' equity	7,400,164	6,784,731
Total liabilities and stockholders' equity	$69,913,217	$65,815,757

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified	Jun. 30, 2009	Dec. 31, 2008
Pledged securities that can be sold or repledged	$4,429,821	$1,870,097
Investment securities, available for sale, cost	7,531,537	7,656,635
Investment securities, held to maturity, fair value	414,173	394,752
Investment securities, other, fair value	$581,653	$583,176
Preferred stock, par value	1	1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	778,000	600,000
Preferred stock, shares outstanding	778,000	600,000
Preferred stock, liquidation preference per share	1,000	1,000
Commmon stock, par value	0.5	0.5
Commmon stock, shares authorized	250,000,000	250,000,000
Commmon stock, shares issued	120,396,611	120,396,611
Common stock issuable, shares	73,679	78,447
Treasury stock - common, shares	2,458,153	10,031,302

Consolidated Statement of Incom

Consolidated Statement of Income (USD $)
In Thousands, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Interest income
Loans and leases, including fees	$574,234	$708,083	$1,128,563	$1,476,474
Deposits at banks	5	22	13	66
Federal funds sold	20	52	39	137
Agreements to resell securities	23	440	62	1,311
Trading account	194	143	315	402
Investment securities, fully taxable	101,133	105,809	199,600	216,854
Investment securities, exempt from federal taxes	1,814	3,025	3,343	6,492
Total interest income	677,423	817,574	1,331,935	1,701,736
Interest expense
NOW accounts	246	629	573	1,647
Savings deposits	26,362	60,317	68,284	126,939
Time deposits	55,697	79,467	116,026	186,110
Deposits at foreign office	576	22,075	1,557	60,448
Short-term borrowings	2,015	42,612	4,363	104,233
Long-term borrowings	90,960	125,842	191,758	256,877
Total interest expense	175,856	330,942	382,561	736,254
Net interest income	501,567	486,632	949,374	965,482
Provision for credit losses	147,000	100,000	305,000	160,000
Net interest income after provision for credit losses	354,567	386,632	644,374	805,482
Other income
Mortgage banking revenues	52,983	38,219	109,216	78,289
Service charges on deposit accounts	112,479	110,340	213,508	213,794
Trust income	32,442	40,426	67,322	80,730
Brokerage services income	13,493	17,211	28,886	32,684
Trading account and foreign exchange gains	7,543	6,636	8,978	11,349
Gain on bank investment securities	292	325	867	33,772
Total other-than-temporary impairment ("OTTI") losses	(75,697)	(5,746)	(138,505)	(5,746)
Portion of OTTI losses recognized in other comprehensive income (before taxes)	50,928	0	81,537	0
Net OTTI losses recognized in earnings	(24,769)	(5,746)	(56,968)	(5,746)
Equity in earnings of Bayview Lending Group LLC	(207)	(13,026)	(4,351)	(14,286)
Other revenues from operations	77,393	76,797	136,532	153,259
Total other income	271,649	271,182	503,990	583,845
Other expense
Salaries and employee benefits	249,952	236,127	499,344	487,998
Equipment and net occupancy	51,321	47,252	99,493	94,017
Printing, postage and supplies	11,554	9,120	20,649	19,016
Amortization of core deposit and other intangible assets	15,231	16,615	30,601	35,098
Deposit insurance	49,637	1,534	55,493	3,073
Other costs of operations	186,015	109,062	296,476	206,212
Total other expense	563,710	419,710	1,002,056	845,414
Income before taxes	62,506	238,104	146,308	543,913
Income taxes	11,318	77,839	30,899	181,452
Net income	51,188	160,265	115,409	362,461
Net income available to common shareholders	$40,516	$160,265	$95,105	$362,461
Net income per common share
Basic	0.36	1.45	0.85	3.29
Diluted	0.36	1.44	0.85	3.26
Cash dividends per common share	0.7	0.7	1.4	1.4
Average common shares outstanding
Basic	113,218	110,191	111,836	110,104
Diluted	113,521	111,227	111,988	111,097

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Cash flows from operating activities
Net income	$51,188	$160,265	$115,409	$362,461
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	147,000	100,000	305,000	160,000
Depreciation and amortization of premises and equipment			26,855	26,215
Amortization of capitalized servicing rights			31,498	32,723
Amortization of core deposit and other intangible assets	15,231	16,615	30,601	35,098
Provision for deferred income taxes			62,472	(14,312)
Asset write-downs			80,439	6,559
Net gain on sales of assets			(139)	(29,608)
Net change in accrued interest receivable, payable			10,408	7,808
Net change in other accrued income and expense			38,101	(46,326)
Net change in loans originated for sale			(241,186)	260,987
Net change in trading account assets and liabilities			(44,953)	42,718
Net cash provided by operating activities			414,505	844,323
Cash flows from investing activities
Proceeds from sales of available for sale investment securities			7,020	53,610
Proceeds from sales of other investment securities			42,522	38,689
Proceeds from maturities of available for sale investment securities			1,069,602	1,251,121
Proceeds from maturities of held to maturity investment securities			56,024	29,023
Purchases of available for sale investment securities			(33,621)	(667,060)
Purchases of held to maturity investment securities			(19,170)	(25,668)
Purchases of other investment securities			(2,886)	(137,684)
Net (increase) decrease in agreements to resell securities			90,000	(240,000)
Net (increase) decrease in loans and leases			110,264	(2,116,001)
Other investments, net			(14,179)	(4,925)
Additions to capitalized servicing rights			(298)	(15,744)
Capital expenditures, net			(17,655)	(24,196)
Acquisitions of banks and bank holding companies, net of cash acquired			144,009	0
Other, net			16,668	(43,791)
Net cash provided (used) by investing activities			1,448,300	(1,902,626)
Cash flows from financing activities
Net increase (decrease) in deposits			(881,060)	663,520
Net decrease in short-term borrowings			(235,111)	(2,060,092)
Proceeds from long-term borrowings			0	3,650,010
Payments on long-term borrowings			(1,001,334)	(1,175,977)
Dividends paid - common			(160,023)	(154,121)
Dividends paid - preferred			(11,833)	0
Other, net			9,133	5,919
Net cash provided (used) by financing activities			(2,280,228)	929,259
Net decrease in cash and cash equivalents			(417,423)	(129,044)
Cash and cash equivalents at beginning of period			1,568,151	1,767,547
Cash and cash equivalents at end of period	1,150,728	1,638,503	1,150,728	1,638,503
Supplemental disclosure of cash flow information
Interest received during the period			1,330,441	1,763,523
Interest paid during the period			351,744	775,474
Income taxes paid (refunded) during the period			(9,551)	186,313
Supplemental schedule of noncash investing and financing activities
Securitization of residential mortgage loans allocated to available for sale investment securities			140,942	541,196
Securitization of residential mortgage loans allocated to capitalized servicing rights			788	4,940
Real estate acquired in settlement of loans			51,143	40,314
Acquisitions, fair value of
Assets acquired (noncash)			6,171,252	0
Liabilities assumed			5,878,941	0
Preferred stock issued			155,779	0
Common stock issued			272,824	0
Common stock options			1,367	0
Common stock warrants			$6,467	$0

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders Equity (USD $)
In Thousands	Common stock	Preferred stock	Common Stock Issuable	Additional paid-in capital	Treasury stock	Retained earnings	Accumulated other comprehensive income (loss), net	Total
Beginning Balance at Dec. 31, 2007	$60,198		$4,776	$2,848,752	($1,129,233)	$4,815,585	($114,822)	$6,485,256
Comprehensive income:
Net income						362,461		362,461
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains (losses) on investment securities							(212,309)	(212,309)
Defined benefit plans liability adjustment							(699)	(699)
Unrealized gains (losses) on cash flow hedges							(5,087)	(5,087)
Repayment of management stock ownership program receivable				72				72
Compensation expense of stock option and purchase plans				24,949	3,944			28,893
Exercises of stock option and purchase plans				(19,518)	33,346			13,828
Directors' stock plan				(223)	919			696
Deferred compensation plans, net, including dividend equivalents			(182)	(383)	739	(108)		66
Common stock cash dividends - $1.40 per share						(154,121)		(154,121)
Ending Balance at Jun. 30, 2008	60,198		4,594	2,853,649	(1,090,285)	5,023,817	(332,917)	6,519,056
Beginning Balance at Mar. 31, 2008	60,198
Other comprehensive income, net of tax and reclassification adjustments:
Ending Balance at Jun. 30, 2008	60,198
Beginning Balance at Dec. 31, 2008	60,198	567,463	4,617	2,897,907	(1,071,327)	5,062,754	(736,881)	6,784,731
Comprehensive income:
Net income						115,409		115,409
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains (losses) on investment securities							149,398	149,398
Defined benefit plans liability adjustment							735	735
Unrealized gains (losses) on terminated cash flow hedges							5,992	5,992
Acquisition of Provident Bankshares Corporation, preferred stock issued		155,779						155,779
Acquisition of Provident Bankshares Corporation, common stock issued				(348,080)	620,904			272,824
Acquisition of Provident Bankshares Corporation, common stock options				1,367				1,367
Acquisition of Provident Bankshares Corporation, common stock warrants				6,467				6,467
Issuance of common stock to defined benefit pension plan				(51,417)	95,706			44,289
Preferred stock cash dividends						(11,833)		(11,833)
Amortization of preferred stock discount		2,230				(2,230)
Compensation expense of stock option and purchase plans				(42,014)	74,605			32,591
Exercises of stock option and purchase plans				(14,097)	16,211			2,114
Directors' stock plan				(785)	1,480			695
Deferred compensation plans, net, including dividend equivalents			(373)	(497)	1,025	(101)		54
Common stock cash dividends - $1.40 per share						(160,448)		(160,448)
Ending Balance at Jun. 30, 2009	60,198	725,472	4,244	2,448,851	(261,396)	5,003,551	(580,756)	7,400,164
Beginning Balance at Mar. 31, 2009	60,198
Other comprehensive income, net of tax and reclassification adjustments:
Ending Balance at Jun. 30, 2009	$60,198

1_Consolidated Statement of Cha

Consolidated Statement of Changes in Stockholders Equity (Parenthetical) (USD $)
	Retained earnings	Total
Common stock per share dividend amount	1.4	1.4
Common stock per share dividend amount	1.4	1.4

Consolidated Summary of Changes

Consolidated Summary of Changes In Allowance For Credit Losses (USD $)
In Thousands	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Beginning balance	$787,904	$759,439
Provision for credit losses	305,000	160,000
Allowance related to loans sold or securitized	0	(327)
Net charge-offs
Charge-offs	(259,019)	(165,404)
Recoveries	21,480	20,368
Total net charge-offs	(237,539)	(145,036)
Ending balance	$855,365	$774,076

Significant accounting policies

Significant accounting policies
	6 Months Ended Jun. 30, 2009 USD / shares
Significant accounting policies [Abstract]
Significant accounting policies	1. Significant accounting policies The consolidated financial statements of MT Bank Corporation (MT) and subsidiaries (the Company) were compiled in accordance with generally accepted accounting principles (GAAP) using the accounting policies set forth in note 1 of Notes to Financial Statements included in the 2008 Annual Report, except as described below. In the opinion of management, all adjustments necessary for a fair presentation have been made and were all of a normal recurring nature. Subsequent events have been evaluated for their potential impact on the financial statements through August4, 2009, which is the date the financial statements were issued.

Acquisitions

Acquisitions
	6 Months Ended Jun. 30, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	2. Acquisitions On May23, 2009, MT acquired all of the outstanding common stock of Provident Bankshares Corporation (Provident), a bank holding company based in Baltimore, Maryland, in a stock-for-stock transaction. Provident Bank, Providents banking subsidiary, was merged into MT Bank, MTs principal banking subsidiary, on that date. The results of operations acquired in the Provident transaction have been included in the Companys financial results since May23, 2009. Provident common shareholders received .171625 shares of MT common stock in exchange for each share of Provident common stock, resulting in MT issuing a total of 5,838,308 common shares with an acquisition date fair value of $273million. In addition, based on the merger agreement, outstanding and unexercised options to purchase Provident common stock were converted into options to purchase the common stock of MT. Those options had an estimated fair value of $1million. In total, the purchase price was approximately $274million based on the fair value on the acquisition date of MT common stock exchanged and the options to purchase MT common stock. Holders of Providents preferred stock were issued shares of new SeriesB and SeriesC Preferred Stock of MT having substantially identical terms. That preferred stock and warrants to purchase common stock associated with the SeriesC Preferred Stock added $162million to MTs stockholders equity. The transaction has been accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Assets acquired totaled $6.3billion, including $4.0 billion of loans and leases (including approximately $1.7billion of commercial real estate loans, $1.4billion of consumer loans, $700million of commercial loans and leases and $300million of residential real estate loans) and $1.0billion of investment securities. Liabilities assumed were $5.9billion, including $5.1billion of deposits. The transaction added $436million to MTs stockholders equity, including $280million of common equity and $156million of preferred equity. In connection with the acquisition, the Company recorded $332million of goodwill and $63million of core deposit intangible. The core deposit intangible is being amortized over seven years using an accelerated method. The acquisition of Provident expands the Companys presence in the Mid-Atlantic area, gives the Company the second largest deposit share in Maryland, and tripled the Companys presence in Virginia. In many cases, determining the fair value of the acquired assets and assumed liabilities required the Company to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of these determinations related to the fair valuation of acquired loans. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans. The difference between contractually required payments at acquisition and the cash

Investment securities

Investment securities
	6 Months Ended Jun. 30, 2009 USD / shares
Investment securities [Abstract]
Investment securities	3. Investment securities The amortized cost and estimated fair value of investment securities were as follows: Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value (in thousands) June30, 2009 Investment securities available for sale: U.S. Treasury and federal agencies $ 212,113 2,778 58 $ 214,833 Obligations of states and political subdivisions 64,297 1,631 189 65,739 Mortgage-backed securities: Government issued or guaranteed 3,755,001 115,858 3,394 3,867,465 Privately issued residential 2,811,913 1,797 571,952 2,241,758 Privately issued commercial 37,124 14,106 23,018 Collateralized debt obligations 114,707 8,092 10,427 112,372 Other debt securities 296,835 5,442 88,889 213,388 Equity securities 239,547 3,866 18,982 224,431 7,531,537 139,464 707,997 6,963,004 Investment securities held to maturity: Obligations of states and political subdivisions 215,401 1,332 3,142 213,591 Privately issued residential mortgage-backed securities 383,962 194,794 189,168 Other debt securities 11,414 11,414 610,777 1,332 197,936 414,173 Other securities 581,653 581,653 Total $ 8,723,967 140,796 905,933 $ 7,958,830 December31, 2008 Investment securities available for sale: U.S. Treasury and federal agencies $ 290,893 6,203 383 $ 296,713 Obligations of states and political subdivisions 70,425 1,641 303 71,763 Mortgage-backed securities: Government issued or guaranteed 3,525,196 93,578 5,994 3,612,780 Privately issued residential 3,104,209 484 778,139 2,326,554 Privately issued commercial 49,231 8,185 41,046 Collateralized debt obligations 18,088 15,592 2,496 Other debt securities 245,685 18 77,601 168,102 Equity securities 352,908 581 22,750 330,739 7,656,635 102,505 908,947 6,850,193 Investment securities held to maturity: Obligations of states and political subdivisions 63,822 1,715 71 65,466 Privately issued residential mortgage-backed securities 411,847 92,730 319,117 Other debt securities 10,169 10,169 485,838 1,715 92,801 394,752 O

Borrowings

Borrowings
	6 Months Ended Jun. 30, 2009 USD / shares
Borrowings [Abstract]
Borrowings	4. Borrowings The Company had $1.2billion of fixed and floating rate junior subordinated deferrable interest debentures (Junior Subordinated Debentures) outstanding at June30, 2009 which 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 MT and are the only class of each trusts securities possessing general voting powers. The Capital Securities represent preferred undivided interests in the assets of the corresponding trust. Under the Federal Reserve Boards current risk-based capital guidelines, the Capital Securities are includable in MTs Tier 1 capital. As a result of the acquisition of Provident, MT assumed $133million of Junior Subordinated Debentures that mature at various dates from 2028 to 2033. Holders of the Capital Securities receive preferential cumulative cash distributions unless MT 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, MT may not pay dividends or distributions on, or repurchase, redeem or acquire any shares of its capital stock. In the event of an extended interest period exceeding twenty quarterly periods for $350million of Junior Subordinated Debentures due January31, 2068, MT must fund the payment of accrued and unpaid interest through an alternative payment mechanism, which requires MT to issue common stock, non-cumulative perpetual preferred stock or warrants to purchase common stock until MT has raised an amount of eligible proceeds at least equal to the aggregate amount of accrued and unpaid deferred interest on the Junior Subordinated Debentures due January31, 2068. In general, the agreements governing the Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by MT 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 MT. 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 2068) 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 cont

Stockholders equity

Stockholders equity
	1/1/2009 - 6/30/2009 USD / shares
Stockholders' equity [Abstract]
Stockholders' equity	5. Stockholders equity MT 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 MT is presented below: Shares Carrying Carrying issued and value value outstanding June 30, 2009 December 31, 2008 (dollars in thousands) SeriesA (a) Fixed Rate Cumulative Perpetual Preferred Stock, SeriesA, $1,000 liquidation preference per share, 600,000 shares authorized 600,000 $ 569,693 567,463 SeriesB (b) SeriesB Mandatory Convertible Non-cumulative Preferred Stock, $1,000 liquidation preference per share, 26,500 shares authorized 26,500 26,500 SeriesC (a)(c) Fixed Rate Cumulative Perpetual Preferred Stock, SeriesC, $1,000 liquidation preference per share, 151,500 shares authorized 151,500 129,279 (a) Shares were issued as part of the Troubled Asset Relief Program Capital Purchase Program of the U.S. Department of Treasury (U.S. Treasury). Cash proceeds were allocated between the preferred stock and a ten-year warrant to purchase MT common stock (SeriesA 1,218,522 shares, SeriesC 407,542 shares). Dividends, if declared, will accrue and be paid quarterly at a rate of 5% per year for the first five years following the original 2008 issuance dates and thereafter at a rate of 9% per year. (b) Shares were assumed in the Provident acquisition and a new SeriesB Preferred Stock was designated. In the aggregate, the shares of SeriesB Preferred Stock will automatically convert into 433,148 shares of MT common stock on April1, 2011, but shareholders may elect to convert their preferred shares at any time prior to that date. SeriesB Preferred Shares pay dividends, if declared, at a rate of 10% per year, payable quarterly in arrears. (c) Shares were assumed in the Provident acquisition and a new SeriesC Preferred Stock was designated.

Pension plans and other postret

Pension plans and other postretirement benefits
	6 Months Ended Jun. 30, 2009 USD / shares
Pension plans and other postretirement benefits [Abstract]
Pension plans and other postretirement benefits	6. 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: Other Pension postretirement benefits benefits Three months ended June 30 2009 2008 2009 2008 (in thousands) Service cost $ 4,738 4,362 27 115 Interest cost on projected benefit obligation 11,264 10,508 747 941 Expected return on plan assets (11,576 ) (11,933 ) Amortization of prior service cost (1,629 ) (1,639 ) 46 96 Amortization of net actuarial loss 2,499 751 (10 ) (21 ) Net periodic benefit cost $ 5,296 2,049 810 1,131 Other Pension postretirement benefits benefits Six months ended June 30 2009 2008 2009 2008 (in thousands) Service cost $ 9,613 9,705 177 279 Interest cost on projected benefit obligation 22,279 21,272 1,647 2,017 Expected return on plan assets (23,051 ) (23,047 ) Amortization of prior service cost (3,279 ) (3,279 ) 121 138 Amortization of net actuarial loss 4,849 1,971 (10 ) 21 Net periodic benefit cost $ 10,411 6,622 1,935 2,455 Expense incurred in connection with the Companys defined contribution pension and retirement savings plans totaled $8,330,000 and $7,990,000 for the three months ended June30, 2009 and 2008, respectively, and $19,105,000 and $18,317,000 for the six months ended June30, 2009 and 2008, respectively. The Company is not required to make any minimum contributions to the qualified defined benefit pension plan in 2009, however, during the second quarter of 2009 the Company elected to contribute to that plan 900,000 shares of common stock of MT having a fair value of $44 million.

Earnings per common share

Earnings per common share
	6 Months Ended Jun. 30, 2009 USD / shares
Earnings per common share [Abstract]
Earnings per common share	7. Earnings per common share The computations of basic earnings per share follow: Three months ended Six months ended June 30 June 30 2009 2008 2009 2008 (in thousands, except per share) Income available to common stockholders Net income $ 51,188 160,265 115,409 362,461 Less: Preferred stock dividends (8,468 ) (15,968 ) Amortization of preferred stock discount (1,756 ) (3,155 ) Income attributable to unvested stock-based compensation awards (448 ) (1,181 ) Net income available to common stockholders $ 40,516 160,265 95,105 362,461 Weighted-average shares outstanding: Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards 114,485 110,191 112,900 110,104 Less: Unvested stock-based compensation awards (1,267 ) (1,064 ) Weighted-average shares outstanding 113,218 110,191 111,836 110,104 Basic earnings per share $ .36 1.45 .85 3.29 The computations of diluted earnings per share follow: Three months ended Six months ended June 30 June 30 2009 2008 2009 2008 (in thousands, except per share) Net income available to common stockholders $ 40,516 160,265 95,105 362,461 Adjusted weighted-average shares outstanding: Common and unvested stock-based compensation awards 114,485 110,191 112,900 110,104 Less: Unvested stock-based compensation awards (1,267 ) (1,064 ) Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock 303 1,036 152 993 Adjusted weighted-average shares outstanding 113,521 111,227 111,988 111,097 Diluted earnings per share $ .36 1.44 .85 3.26 In June2008, the Financial Accounting Standards Board (FASB) specified that, for financial statements issued for fiscal years beginning after December15, 2008 and interim periods within those years, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per common share pursuant to the two-class method. In 2009, the Company issued stock-based compensation awards in the form of restricted stock and restricted stock units, which, according to the FASB, are considered participating securities. Beginning in 2009, the Companys earnings per common share

Comprehensive income

Comprehensive income
	6 Months Ended Jun. 30, 2009 USD / shares
Comprehensive income [Abstract]
Comprehensive income	8. Comprehensive income The following table displays the components of other comprehensive income (loss): Six months ended June 30, 2009 Before-tax Income amount taxes Net (in thousands) Unrealized gains(losses) on investment securities: Available for sale (AFS) investment securities with OTTI: Securities with OTTI charges during the period $ (138,505 ) 54,250 (84,255 ) Less: OTTI charges recognized in net income (56,968 ) 22,292 (34,676 ) Net unrealized losses on investment securities with OTTI (81,537 ) 31,958 (49,579 ) AFS investment securities - all other: Unrealized holding gains during period 180,862 (70,508 ) 110,354 Less: reclassification adjustment for losses realized in net income (79 ) 32 (47 ) Less: securities with OTTI charges during the period (138,505 ) 54,250 (84,255 ) 319,446 (124,790 ) 194,656 Amortization of unrealized holding losses to income during period on investment securities previously transferred from AFS to held to maturity 5,933 (1,612 ) 4,321 Net unrealized gains on investment securities 243,842 (94,444 ) 149,398 Cash flow hedges: Reclassification of losses on terminated cash flow hedges to income 9,830 (3,838 ) 5,992 Defined benefit plans liability adjustment 1,681 (946 ) 735 $ 255,353 (99,228 ) 156,125 Six months ended June 30, 2008 Before-tax Income amount taxes Net (in thousands) Unrealized losses on AFS investment securities: Unrealized holding losses during period $ (302,903 ) 107,664 (195,239 ) Less: reclassification adjustment for gains realized in net income 28,026 (10,956 ) 17,070 (330,929 ) 118,620 (212,309 ) Cash flow hedges: Unrealized losses on terminated cash flow hedges (20,225 ) 7,887 (12,338 ) Reclassification of losses on terminated cash flow hedges to income 11,892 (4,641 ) 7,251 (8,333 ) 3,246 (5,087 ) Defined benefit plans liability adjustment (1,149 ) 450 (699 ) $ (340,411 ) 122,316 (218,095 ) Accumulated other comprehensive income (loss), net consisted of unrealized gains (losses)as follows: Cash Defined Investment securities flow benefit With OTTI All other hedges plans Total (in thousands) Balance January1, 2009 $ (556

Derivative financial instrument

Derivative financial instruments
	6 Months Ended Jun. 30, 2009 USD / shares
Derivative financial instruments [Abstract]
Derivative financial instruments	9. 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 Companys portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting and collateral provisions protecting the at-risk party. Based on adherence to the Companys credit standards and the presence of the netting and collateral provisions, the Company believes that the credit risk inherent in these contracts is not significant as of June30, 2009. The net effect of interest rate swap agreements was to increase net interest income by $10 million and $5million for the three months ended June30, 2009 and 2008, respectively, and $17 million and $6million for the six months ended June30, 2009 and 2008, 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- Notional Average average rate amount maturity Fixed Variable (in thousands) (in years) June30, 2009 Fair value hedges: Fixed rate time deposits (a) $ 25,000 4.2 5.30 % 0.58 % Fixed rate long-term borrowings (a) 1,037,241 7.0 6.33 2.59 $ 1,062,241 6.9 6.30 % 2.54 % December31, 2008 Fair value hedges: Fixed rate time deposits (a) $ 70,000 6.1 5.14 % 2.04 % Fixed rate long-term borrowings (a) 1,037,241 7.5 6.33 4.28 $ 1,107,241 7.4 6.25 % 4.14 % (a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate. 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. For derivatives designated and qualifying as fair value hedges, the fair values of the derivatives and changes in the fair values of the hedged items are recorded in the Companys consolidated balance sheet with the corresponding gain or loss recognized in current earnings. The difference between changes in the fair values of the interest rate swap agreements and the hedged items represents hedge ineffec

Fair value measurements

Fair value measurements
	6 Months Ended Jun. 30, 2009 USD / shares
Fair value measurements [Abstract]
Fair value measurements	10. Fair value measurements 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 Companys own estimates about the assumptions that market participants would use to value the asset or liability. When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2. If quoted market prices in active markets are not available, fair value is often determined using model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. The following is a description of the valuation methodologies used for the Companys 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 trading positions with third parties to minimize the Companys 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. Prices for certain foreign exchange contracts are more observable and therefore have been classified as Level 1. Mutual funds held in connection with deferred compensation arrangements have also 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 Companys 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, th

Commitments and contingencies

Commitments and contingencies
	6 Months Ended Jun. 30, 2009 USD / shares
Commitments and contingencies [Abstract]
Commitments and contingencies	11. Commitments and contingencies In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Companys significant commitments. Certain of these commitments are not included in the Companys consolidated balance sheet. June 30, December 31, 2009 2008 (in thousands) Commitments to extend credit Home equity lines of credit $ 6,636,329 5,972,541 Commercial real estate loans to be sold 75,115 252,559 Other commercial real estate and construction 2,150,497 2,238,464 Residential real estate loans to be sold 909,547 870,578 Other residential real estate 235,663 211,705 Commercial and other 7,244,702 6,666,988 Standby letters of credit 3,872,298 3,886,396 Commercial letters of credit 50,729 45,503 Financial guarantees and indemnification contracts 1,589,212 1,546,873 Commitments to sell real estate loans 1,409,254 1,306,041 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 managements assessment of the customers creditworthiness. Financial guarantees and indemnification contracts are oftentimes similar to standby letters of credit and may 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 Companys involvement in the Federal National Mortgage Association Delegated Underwriting and Servicing program. The Companys maximum credit risk for recourse associated with loans sold under this program totaled approximately $1.2billion at each of June30, 2009 and December31, 2008. 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

Segment information

Segment information
	6 Months Ended Jun. 30, 2009 USD / shares
Segment information [Abstract]
Segment information	12. Segment information Reportable segments have been determined based upon the Companys 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 Companys segments was compiled utilizing the accounting policies described in note 22 to the Companys consolidated financial statements as of and for the year ended December31, 2008. 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. As also described in note 22 to the Companys 2008 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the Companys reportable segments, but are included in the All Other category. The Company does, however, assign such intangible assets to business units for purposes of testing for impairment. Information about the Companys segments is presented in the following table: Three months ended June 30 2009 2008 Inter- Net Inter- Net Total segment income Total segment income revenues(a) revenues (loss) revenues(a) revenues (loss) (in thousands) Business Banking $ 103,132 30,699 91,995 3 29,547 Commercial Banking 186,558 70,003 153,566 165 53,516 Commercial Real Estate 100,847 33 23,457 88,273 203 42,646 Discretionary Portfolio 16,433 (3,693 ) (3,279 ) 28,792 (4,170 ) 5,324 Residential Mortgage Banking 80,016 15,002 (10,877 ) 64,021 12,953 (10,420 ) Retail Banking 313,025 2,509 54,184 292,175 3,355 62,927 All Other (26,795 ) (13,851 ) (112,999 ) 38,992 (12,509 ) (23,275 ) Total $ 773,216 51,188 757,814 160,265 Six months ended June 30 2009 2008 Inter- Net

Relationship with Bayview Lendi

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.
	6 Months Ended Jun. 30, 2009 USD / shares
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. [Abstract]
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.	13. Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. In 2007 MT invested $300million to acquire a 20% minority interest in Bayview Lending Group LLC (BLG), a privately-held company that, together with its affiliates, specializes in originating, securitizing and servicing small balance commercial real estate loans. MT recognizes income from BLG using the equity method of accounting. Bayview Financial Holdings, L.P. (together with its affiliates, Bayview Financial), a privately-held specialty mortgage finance company, is BLGs 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 purchased loan servicing rights for small balance commercial mortgage loans from BLG and Bayview Financial having outstanding principal balances of $5.8billion and $5.9billion at June30, 2009 and December31, 2008, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $49million at June30, 2009 and $58million at December31, 2008. In addition, capitalized servicing rights at June30, 2009 and December31, 2008 also included $22million and $28million, respectively, for servicing rights that were purchased from Bayview Financial related to residential mortgage loans with outstanding principal balances of $4.3billion at June30, 2009 and $4.6billion at December 31, 2008. Revenues from servicing residential and small balance commercial mortgage loans purchased from BLG and Bayview Financial were $13million in each of the three-month periods ended June30, 2009 and 2008, respectively, and $26million and $27million for the six months ended June 30, 2009 and 2008, respectively. MT Bank provided $50million and $71million of credit facilities to Bayview Financial at June30, 2009 and December31, 2008, respectively, of which $39 million and $57million were outstanding at June30, 2009 and December31, 2008, respectively. Finally, at June30, 2009 and December31, 2008, the Company held $23million and $32million, respectively, of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. In addition, the Company held $384million and $412million of similar investment securities in its held-to-maturity portfolio at June30, 2009 and December31, 2008, respectively.