M&T Bank (MTB) 10-Q 5 Nov 09 2009 Q3 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	9 Months Ended Sep. 30, 2009	Oct. 23, 2009	Jun. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	M&T BANK CORP
Entity Central Index Key	0000036270
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
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		118,091,387

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Assets
Cash and due from banks	$1,356,508	$1,546,804
Interest-bearing deposits at banks	54,443	10,284
Federal funds sold	17,206	21,347
Agreements to resell securities	0	90,000
Trading account	497,064	617,821
Investment securities (includes pledged securities that can be sold or repledged of $1,778,129 at September 30, 2009; $1,870,097 at December 31, 2008)
Available for sale (cost: $6,835,553 at September 30, 2009; $7,656,635 at December 31, 2008)	6,522,856	6,850,193
Held to maturity (fair value: $431,036 at September 30, 2009; $394,752 at December 31, 2008)	598,743	485,838
Other (fair value: $512,663 at September 30, 2009; $583,176 at December 31, 2008)	512,663	583,176
Total investment securities	7,634,262	7,919,207
Loans and leases	52,560,851	49,359,737
Unearned discount	(357,079)	(359,274)
Allowance for credit losses	(867,874)	(787,904)
Loans and leases, net	51,335,898	48,212,559
Premises and equipment	436,586	388,855
Goodwill	3,524,625	3,192,128
Core deposit and other intangible assets	199,148	183,496
Accrued interest and other assets	3,941,710	3,633,256
Total assets	68,997,450	65,815,757
Liabilities
Noninterest-bearing deposits	12,730,083	8,856,114
NOW accounts	1,047,824	1,141,308
Savings deposits	23,000,354	19,488,918
Time deposits	8,765,520	9,046,937
Deposits at foreign office	1,318,070	4,047,986
Total deposits	46,861,851	42,581,263
Federal funds purchased and agreements to repurchase securities	2,298,032	970,529
Other short-term borrowings	629,236	2,039,206
Accrued interest and other liabilities	1,241,576	1,364,879
Long-term borrowings	10,354,392	12,075,149
Total liabilities	61,385,087	59,031,026
Stockholders' equity
Preferred stock, par value $1.00, 1,000,000 shares authorized, 778,000 shares issued and oustanding at September 30, 2009; 600,000 shares issued and oustanding at December 31, 2008 (liquidation preference $1,000 per share)	727,748	567,463
Common stock, $.50 par, 250,000,000 shares authorized, 120,396,611 shares issued	60,198	60,198
Common stock issuable, 74,405 shares at September 30, 2009; 78,447 shares at December 31, 2008	4,291	4,617
Additional paid-in capital	2,448,843	2,897,907
Retained earnings	5,035,808	5,062,754
Accumulated other comprehensive income (loss), net	(419,286)	(736,881)
Treasury stock - common, at cost - 2,314,873 shares at September 30, 2009; 10,031,302 shares at December 31, 2008	(245,239)	(1,071,327)
Total stockholders' equity	7,612,363	6,784,731
Total liabilities and stockholders' equity	$68,997,450	$65,815,757

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (Unaudited) (USD $)
In Thousands, except Share data	Sep. 30, 2009	Dec. 31, 2008
Assets
Pledged securities that can be sold or repledged	$1,778,129	$1,870,097
Investment securities, available for sale, cost	6,835,553	7,656,635
Investment securities, held to maturity, fair value	431,036	394,752
Investment securities, other, fair value	$512,663	$583,176
Stockholders' equity
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	74,405	78,447
Treasury stock - common, shares	2,314,873	10,031,302

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Interest income
Loans and leases, including fees	$599,859	$684,281	$1,728,422	$2,160,755
Deposits at banks	7	25	20	91
Federal funds sold	17	74	56	211
Agreements to resell securities	0	441	62	1,752
Trading account	135	359	450	761
Investment securities
Fully taxable	97,963	114,146	297,563	331,000
Exempt from federal taxes	2,612	2,028	5,955	8,520
Total interest income	700,593	801,354	2,032,528	2,503,090
Interest expense
NOW accounts	288	655	861	2,302
Savings deposits	22,076	58,917	90,360	185,856
Time deposits	50,678	72,100	166,704	258,210
Deposits at foreign office	481	18,709	2,038	79,157
Short-term borrowings	1,764	28,155	6,127	132,388
Long-term borrowings	77,651	134,579	269,409	391,456
Total interest expense	152,938	313,115	535,499	1,049,369
Net interest income	547,655	488,239	1,497,029	1,453,721
Provision for credit losses	154,000	101,000	459,000	261,000
Net interest income after provision for credit losses	393,655	387,239	1,038,029	1,192,721
Other income
Mortgage banking revenues	48,169	38,002	157,385	116,291
Service charges on deposit accounts	128,502	110,371	342,010	324,165
Trust income	31,586	38,789	98,908	119,519
Brokerage services income	14,329	16,218	43,215	48,902
Trading account and foreign exchange gains	7,478	4,278	16,456	15,627
Gain (loss) on bank investment securities	(56)	306	811	34,078
Total other-than-temporary impairment ("OTTI") losses	(64,232)	(152,579)	(202,737)	(158,325)
Portion of OTTI losses recognized in other comprehensive income (before taxes)	17,199	0	98,736	0
Net OTTI losses recognized in earnings	(47,033)	(152,579)	(104,001)	(158,325)
Equity in earnings of Bayview Lending Group LLC	(10,912)	(14,480)	(15,263)	(28,766)
Other revenues from operations	106,163	72,812	242,695	226,071
Total other income	278,226	113,717	782,216	697,562
Other expense
Salaries and employee benefits	255,449	236,678	754,793	724,676
Equipment and net occupancy	58,195	47,033	157,688	141,050
Printing, postage and supplies	8,229	8,443	28,878	27,459
Amortization of core deposit and other intangible assets	16,924	15,840	47,525	50,938
Deposit insurance	21,124	1,522	76,617	4,595
Other costs of operations	140,135	125,247	436,611	331,459
Total other expense	500,056	434,763	1,502,112	1,280,177
Income before taxes	171,825	66,193	318,133	610,106
Income taxes (benefit)	44,161	(24,992)	75,060	156,460
Net income	127,664	91,185	243,073	453,646
Net income available to common shareholders	$113,894	$91,185	$209,062	$453,646
Net income per common share
Basic	0.97	0.83	1.84	4.12
Diluted	0.97	0.82	1.84	4.09
Cash dividends per common share	0.7	0.7	2.1	2.1
Average common shares outstanding
Basic	117,370	110,265	113,701	110,158
Diluted	117,547	110,807	113,800	111,000

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities
Net income	$127,664	$91,185	$243,073	$453,646
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	154,000	101,000	459,000	261,000
Depreciation and amortization of premises and equipment			43,050	39,918
Amortization of capitalized servicing rights			46,997	49,322
Amortization of core deposit and other intangible assets	16,924	15,840	47,525	50,938
Provision for deferred income taxes			82,904	(56,157)
Asset write-downs			131,822	161,763
Net gain on sales of assets			(249)	(26,202)
Net change in accrued interest receivable, payable			(5,154)	1,302
Net change in other accrued income and expense			34,206	(1,111)
Net change in loans originated for sale			8,144	433,929
Net change in trading account assets and liabilities			(15,797)	(74,583)
Net cash provided by operating activities			1,075,521	1,293,765
Cash flows from investing activities
Proceeds from sales of available for sale investment securities			7,159	57,350
Proceeds from sales of other investment securities			115,336	87,782
Proceeds from maturities of available for sale investment securities			1,803,946	1,608,085
Proceeds from maturities of held to maturity investment securities			76,084	60,922
Purchases of available for sale investment securities			(68,724)	(761,381)
Purchases of held to maturity investment securities			(25,289)	(176,673)
Purchases of other investment securities			(2,886)	(173,994)
Net (increase) decrease in agreements to resell securities			90,000	(90,000)
Net (increase) decrease in loans and leases			513,519	(2,350,539)
Other investments, net			(23,496)	(13,557)
Additions to capitalized servicing rights			(320)	(22,261)
Capital expenditures, net			(27,664)	(43,854)
Acquisitions of banks and bank holding companies, net of cash acquired			202,993	0
Other, net			19,115	(141,409)
Net cash provided (used) by investing activities			2,679,773	(1,959,529)
Cash flows from financing activities
Net increase (decrease) in deposits			(1,125,110)	1,239,933
Net decrease in short-term borrowings			(260,488)	(2,892,263)
Proceeds from long-term borrowings			0	3,850,010
Payments on long-term borrowings			(2,301,894)	(1,676,725)
Dividends paid - common			(242,551)	(231,269)
Dividends paid - preferred			(21,890)	0
Other, net			2,202	(3,952)
Net cash provided (used) by financing activities			(3,949,731)	285,734
Net decrease in cash and cash equivalents			(194,437)	(380,030)
Cash and cash equivalents at beginning of period			1,568,151	1,767,547
Cash and cash equivalents at end of period	1,373,714	1,387,517	1,373,714	1,387,517
Supplemental disclosure of cash flow information
Interest received during the period			2,042,092	2,570,574
Interest paid during the period			525,657	1,071,672
Income taxes paid (refunded) during the period			(8,157)	200,749
Supplemental schedule of noncash investing and financing activities
Securitization of residential mortgage loans allocated to: available for sale investment securities			140,942	869,115
Securitization of residential mortgage loans allocated to: capitalized servicing rights			788	8,455
Real estate acquired in settlement of loans			69,518	92,814
Investment securities available for sale transferred to held to maturity			0	298,108
Acquisitions, fair value of
Assets acquired (noncash)			6,581,433	0
Liabilities assumed			6,318,998	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 (Unaudited) (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
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						453,646		453,646
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains (losses) on investment securities							(345,758)	(345,758)
Unrealized gains (losses) on terminated cash flow hedges							(459)	(459)
Defined benefit plans liability adjustment							(1,011)	(1,011)
Repayment of management stock ownership program receivable				72				72
Stock option and purchase plans:
Compensation expense				35,356	3,913			39,269
Exercises				(21,893)	37,756			15,863
Directors' stock plan				(384)	1,393			1,009
Deferred compensation plans, net, including dividend equivalents			(150)	(408)	787	(163)		66
Common stock cash dividends - $2.10 per share						(231,269)		(231,269)
Balance at Sep. 30, 2008	60,198		4,626	2,861,495	(1,085,384)	5,037,799	(462,050)	6,416,684
Balance at Jun. 30, 2008	60,198
Stock option and purchase plans:
Balance at Sep. 30, 2008	60,198
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						243,073		243,073
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains (losses) on investment securities							309,150	309,150
Unrealized gains (losses) on terminated cash flow hedges							6,627	6,627
Defined benefit plans liability adjustment							1,818	1,818
Repayment of management stock ownership program receivable				195				195
Acquisition of Provident Bankshares Corporation:
Preferred stock issued		155,779						155,779
Common stock issued				(348,080)	620,904			272,824
Common stock options				1,367				1,367
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						(21,890)		(21,890)
Amortization of preferred stock discount		4,506				(4,506)
Stock option and purchase plans:
Compensation expense				(31,677)	74,642			42,965
Exercises				(24,335)	31,751			7,416
Directors' stock plan				(1,082)	2,050			968
Deferred compensation plans, net, including dividend equivalents			(326)	(502)	1,035	(152)		55
Common stock cash dividends - $2.10 per share						(243,471)		(243,471)
Balance at Sep. 30, 2009	60,198	727,748	4,291	2,448,843	(245,239)	5,035,808	(419,286)	7,612,363
Balance at Jun. 30, 2009	60,198
Stock option and purchase plans:
Balance at Sep. 30, 2009	$60,198

1_Consolidated Statement of Cha

Consolidated Statement of Changes in Stockholders Equity (Parenthetical) (Unaudited) (USD $)
	Retained earnings	Total
Common stock per share dividend amount	2.1	2.1
Common stock per share dividend amount	2.1	2.1

Consolidated Summary of Changes

Consolidated Summary of Changes In Allowance For Credit Losses (Unaudited) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Beginning balance	$787,904	$759,439
Provision for credit losses	459,000	261,000
Allowance related to loans sold or securitized	0	(525)
Net charge-offs
Charge-offs	(409,169)	(267,912)
Recoveries	30,139	28,681
Total net charge-offs	(379,030)	(239,231)
Ending balance	$867,874	$780,683

Significant accounting policies

Significant accounting policies
	9 Months Ended Sep. 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 November 4, 2009, which is the date the financial statements were issued.

Acquisitions

Acquisitions
	9 Months Ended Sep. 30, 2009 USD / shares
Acquisitions [Abstract]
Acquisitions	2. Acquisitions On August28, 2009, MT Bank, MTs principal banking subsidiary, entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits and acquire certain assets of Bradford Bank (Bradford), Baltimore, Maryland. As part of the transaction, MT Bank entered into a loss-share arrangement with the FDIC whereby MT Bank will be reimbursed by the FDIC for most losses it incurs on the acquired loan portfolio. The transaction has been accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed were recorded at estimated fair value on the acquisition date. Assets acquired totaled approximately $469million, including $302million of loans, and liabilities assumed aggregated $440million, including $361million of deposits. In accordance with GAAP, MT Bank recorded an after-tax gain on the transaction of $18million ($29million before taxes) during the recent quarter. There was no goodwill or other intangible assets recorded in connection with this transaction. The Bradford acquisition transaction did not have a material impact on the Companys statement of condition nor is it expected to have a material impact on the Companys results of operations. 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 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 Provident 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 inves

Investment securities

Investment securities
	9 Months Ended Sep. 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) September30, 2009 Investment securities available for sale: U.S. Treasury and federal agencies $ 112,718 2,084 19 $ 114,783 Obligations of states and political subdivisions 66,633 1,864 45 68,452 Mortgage-backed securities: Government issued or guaranteed 3,475,366 148,308 682 3,622,992 Privately issued residential 2,596,799 10,086 422,648 2,184,237 Privately issued commercial 34,825 11,284 23,541 Collateralized debt obligations 109,547 26,875 5,085 131,337 Other debt securities 298,740 13,416 70,990 241,166 Equity securities 140,925 6,776 11,353 136,348 6,835,553 209,409 522,106 6,522,856 Investment securities held to maturity: Obligations of states and political subdivisions 213,380 3,926 113 217,193 Privately issued residential mortgage-backed securities 374,190 171,520 202,670 Other debt securities 11,173 11,173 598,743 3,926 171,633 431,036 Other securities 512,663 512,663 Total $ 7,946,959 213,335 693,739 $ 7,466,555 Gross Gross Amortized unrealized unrealized Estimated cost gains losses fair value (in thousands) 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 92,7

Borrowings

Borrowings
	9 Months Ended Sep. 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 September30, 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 contract

Stockholders equity

Stockholders equity
	1/1/2009 - 9/30/2009 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 September 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 $ 571,125 567,463 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 151,500 130,123 (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. Dividends, if declared, are payable quarterly in arrears at a rate of 10% per year. (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
	9 Months Ended Sep. 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 September 30 2009 2008 2009 2008 (in thousands) Service cost $ 4,935 4,852 88 140 Interest cost on projected benefit obligation 11,910 10,636 828 1,008 Expected return on plan assets (11,963 ) (11,523 ) Amortization of prior service cost (1,640 ) (1,640 ) 61 69 Amortization of net actuarial loss 2,424 986 (5 ) 10 Net periodic benefit cost $ 5,666 3,311 972 1,227 Other Pension postretirement benefits benefits Nine months ended September 30 2009 2008 2009 2008 (in thousands) Service cost $ 14,548 14,557 265 419 Interest cost on projected benefit obligation 34,189 31,908 2,475 3,025 Expected return on plan assets (35,014 ) (34,570 ) Amortization of prior service cost (4,919 ) (4,919 ) 182 207 Amortization of net actuarial loss 7,273 2,957 (15 ) 31 Net periodic benefit cost $ 16,077 9,933 2,907 3,682 Expense incurred in connection with the Companys defined contribution pension and retirement savings plans totaled $8,061,000 and $7,758,000 for the three months ended September30, 2009 and 2008, respectively, and $27,166,000 and $26,075,000 for the nine months ended September30, 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 $44million.

Earnings per common share

Earnings per common share
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings per common share [Abstract]
Earnings per common share	7. Earnings per common share The computations of basic earnings per common share follow: Three months ended Nine months ended September 30 September 30 2009 2008 2009 2008 (in thousands, except per share) Income available to common stockholders Net income $ 127,664 91,185 243,073 453,646 Less: Preferred stock dividends (10,056 ) (26,024 ) Amortization of preferred stock discount (2,465 ) (5,620 ) Income attributable to unvested stock-based compensation awards (1,249 ) (2,367 ) Net income available to common stockholders $ 113,894 91,185 209,062 453,646 Weighted-average shares outstanding: Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards 118,663 110,265 114,843 110,158 Less: Unvested stock-based compensation awards (1,293 ) (1,142 ) Weighted-average shares outstanding 117,370 110,265 113,701 110,158 Basic earnings per common share $ .97 .83 1.84 4.12 The computations of diluted earnings per common share follow: Three months ended Nine months ended September 30 September 30 2009 2008 2009 2008 (in thousands, except per share) Net income available to common stockholders $ 113,894 91,185 209,062 453,646 Adjusted weighted-average shares outstanding: Common and unvested stock-based compensation awards 118,663 110,265 114,843 110,158 Less: Unvested stock-based compensation awards (1,293 ) (1,142 ) Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock 177 542 99 842 Adjusted weighted-average shares outstanding 117,547 110,807 113,800 111,000 Diluted earnings per common share $ .97 .82 1.84 4.09 GAAP requires that for financial statements issued for fiscal years beginning after December 15, 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, in accordance with GAAP, are considered participating securities. Beginning in 2009, the Companys earnings per common share are c

Comprehensive income

Comprehensive income
	9 Months Ended Sep. 30, 2009 USD / shares
Comprehensive income [Abstract]
Comprehensive income	8. Comprehensive income The following table displays the components of other comprehensive income (loss): Nine months ended September 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 $ (202,737 ) 79,296 (123,441 ) Less: OTTI charges recognized in net income (104,001 ) 40,662 (63,339 ) Net unrealized losses on investment securities with OTTI (98,736 ) 38,634 (60,102 ) AFS investment securities all other: Unrealized holding gains during period 389,609 (149,651 ) 239,958 Less: reclassification adjustment for losses realized in net income (135 ) 54 (81 ) Less: securities with OTTI charges during the period (202,737 ) 79,296 (123,441 ) 592,481 (229,001 ) 363,480 Amortization of unrealized holding losses to income during period on investment securities previously transferred from AFS to held to maturity (HTM) 7,955 (2,183 ) 5,772 Net unrealized gains on investment securities 501,700 (192,550 ) 309,150 Cash flow hedges: Reclassification of losses on terminated cash flow hedges to income 10,873 (4,246 ) 6,627 Defined benefit plans liability adjustment 2,521 (703 ) 1,818 $ 515,094 (197,499 ) 317,595 Nine months ended September 30, 2008 Before-tax Income amount taxes Net (in thousands) Unrealized losses on AFS investment securities: Unrealized holding losses during period $ (729,175 ) 226,923 (502,252 ) Add: transfer of investment securities from AFS to HTM 86,943 (20,972 ) 65,971 Less: reclassification adjustment for losses realized in net income (156,771 ) 1,661 (155,110 ) (485,461 ) 204,290 (281,171 ) Unrealized holding losses on investment securities transferred from AFS to HTM: Unrealized holding losses transferred during period (86,943 ) 20,972 (65,971 ) Less: amortization of unrealized holding losses to income during period (2,150 ) 766 (1,384 ) (84,793 ) 20,206 (64,587 ) Net unrealized losses on investment securities (570,254 ) 224,496 (345,758 ) Cash flow hedges: Unrealized losses on terminated cash flow hedges (20,225 ) 7,887 (12,338 ) Reclassification of losses on terminated

Derivative financial instrument

Derivative financial instruments
	9 Months Ended Sep. 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 September30, 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 September30, 2009 and 2008, respectively, and $27million and $11million for the nine months ended September30, 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) September30, 2009 Fair value hedges: Fixed rate time deposits (a) $ 25,000 4.0 5.30 % 0.36 % Fixed rate long-term borrowings (a) 1,037,241 6.7 6.33 2.24 $ 1,062,241 6.7 6.30 % 2.19 % 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

Fair value measurements

Fair value measurements
	9 Months Ended Sep. 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 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, therefore, s

Commitments and contingencies

Commitments and contingencies
	9 Months Ended Sep. 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. September 30, December 31, 2009 2008 (in thousands) Commitments to extend credit Home equity lines of credit $ 6,555,861 5,972,541 Commercial real estate loans to be sold 40,626 252,559 Other commercial real estate and construction 1,766,440 2,238,464 Residential real estate loans to be sold 795,084 870,578 Other residential real estate 140,325 211,705 Commercial and other 7,115,523 6,666,988 Standby letters of credit 3,848,468 3,886,396 Commercial letters of credit 56,059 45,503 Financial guarantees and indemnification contracts 1,549,714 1,546,873 Commitments to sell real estate loans 1,070,413 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 $1.3billion and $1.2billion at September30, 2009 and December 31, 2008, respectively. 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. Th

Segment information

Segment information
	9 Months Ended Sep. 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 September 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 $ 108,744 33,707 93,573 2 29,559 Commercial Banking 183,407 41,158 152,429 94 59,898 Commercial Real Estate 107,524 14 42,229 85,625 145 35,867 Discretionary Portfolio 1,346 (2,894 ) (10,496 ) (107,756 ) (2,616 ) (78,402 ) Residential Mortgage Banking 74,336 11,170 1,209 55,896 8,242 (17,801 ) Retail Banking 336,049 2,902 74,043 287,609 3,136 58,336 All Other 14,475 (11,192 ) (54,186 ) 34,580 (9,003 ) 3,728 Total $ 825,881 127,664 601,956 91,185 Nine months ended September 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 $ 305,511

Relationship with Bayview Lendi

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.
	9 Months Ended Sep. 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 $5.7billion and $5.9billion at September30, 2009 and December31, 2008, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $44million at September30, 2009 and $58 million at December31, 2008. In addition, capitalized servicing rights at September30, 2009 and December31, 2008 also included $20million and $28million, respectively, for servicing rights that were purchased from Bayview Financial related to residential mortgage loans with outstanding principal balances of $4.1billion at September30, 2009 and $4.6billion at December31, 2008. Revenues from servicing residential and small balance commercial mortgage loans purchased from BLG and Bayview Financial were $12million and $13million during the three-month periods ended September30, 2009 and 2008, respectively, and $38million and $40million for the nine months ended September30, 2009 and 2008, respectively. MT Bank provided $41million and $71 million of credit facilities to Bayview Financial at September30, 2009 and December31, 2008, respectively, of which $31million and $57million were outstanding at September30, 2009 and December31, 2008, respectively. At September30, 2009 and December31, 2008, the Company held $24million 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 $374million and $412million of similar investment securities in its held-to-maturity portfolio at September30, 2009 and December31, 2008, respectively.