M&T Bank (MTB) 10-Q 7 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 23, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	M&T BANK CORP
Entity Central Index Key	0000036270
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
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			$3,984,009,945
Entity Common Stock, Shares Outstanding		118,865,763

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
Assets
Cash and due from banks	$1,033,269	$1,226,223
Interest-bearing deposits at banks	121,305	133,335
Federal funds sold	10,400	20,119
Trading account	403,476	386,984
Investment securities (includes pledged securities that can be sold or repledged of $1,787,179 at March 31,2010; $1,797,701 at December 31,2009)
Available for sale (cost: $6,261,058 at March 31, 2010; $6,997,009 at December 31,2009)	6,097,266	6,704,378
Held to maturity (fair value: $1,373,672 at March 31, 2010; $416,483 at December 31, 2009)	1,509,805	567,607
Other (fair value: $497,575 at March 31, 2010; $508,624 at Decemeber 31, 2009)	497,575	508,624
Total investment securities	8,104,646	7,780,609
Loans and leases	51,800,817	52,306,457
Unearned discount	(356,776)	(369,771)
Allowance for credit losses	(891,265)	(878,022)
Loans and leases, net	50,552,776	51,058,664
Premises and equipment	427,883	435,845
Goodwill	3,524,625	3,524,625
Core deposit and other intangible assets	167,545	182,418
Accrued interest and other assets	4,093,297	4,131,577
Total assets	68,439,222	68,880,399
Liabilities
Noninterest-bearing deposits	13,622,819	13,794,636
NOW accounts	1,312,284	1,396,471
Savings deposits	24,867,761	23,676,798
Time deposits	6,945,716	7,531,495
Deposits at foreign office	789,825	1,050,438
Total deposits	47,538,405	47,449,838
Federal funds purchased and agreements to repurchase securities	1,740,059	2,211,692
Other short-term borrowings	130,704	230,890
Accrued interest and other liabilities	1,048,473	995,056
Long-term borrowings	10,065,894	10,240,016
Total liabilities	60,523,535	61,127,492
Stockholders' equity
Preferred stock, $1.00 par, 1,000,000 shares authorized, 778,000 shares issued and oustanding (liquidation preference $1,000 per share)	732,769	730,235
Common stock, $.50 par, 250,000,000 shares authorized, 120,396,611 shares issued	60,198	60,198
Common stock issuable, 70,274 shares at March 31, 2010; 75,170 shares at December 31, 2009	4,073	4,342
Additional paid-in capital	2,411,402	2,442,947
Retained earnings	5,131,600	5,076,884
Accumulated other comprehensive income (loss), net	(255,181)	(335,997)
Treasury stock - common, at cost - 1,643,972 shares at March 31, 2010; 2,173,916 shares at December 31, 2009	(169,174)	(225,702)
Total stockholders' equity	7,915,687	7,752,907
Total liabilities and stockholders' equity	$68,439,222	$68,880,399

1_Consolidated Balance Sheet (U

Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $)
In Thousands, except Share data	Mar. 31, 2010	Dec. 31, 2009
Assets
Pledged securities that can be sold or repledged	$1,787,179	$1,797,701
Investment securities, available for sale, cost	6,261,058	6,997,009
Investment securities, held to maturity, fair value	1,373,672	416,483
Investment securities, other fair value	$497,575	$508,624
Stockholders' equity
Preferred stock, par value	1	1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	778,000	778,000
Preferred stock, shares outstanding	778,000	778,000
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	70,274	75,170
Treasury stock - common, shares	1,643,972	2,173,916

Consolidated Statement of Incom

Consolidated Statement of Income (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Interest income
Loans and leases, including fees	$588,127	$554,329
Deposits at banks	6	8
Federal funds sold	11	19
Agreements to resell securities	2	39
Trading account	83	121
Investment securities
Fully taxable	85,647	98,467
Exempt from federal taxes	2,510	1,529
Total interest income	676,386	654,512
Interest expense
NOW accounts	200	327
Savings deposits	20,449	41,922
Time deposits	29,446	60,329
Deposits at foreign office	325	981
Short-term borrowings	887	2,348
Long-term borrowings	68,745	100,798
Total interest expense	120,052	206,705
Net interest income	556,334	447,807
Provision for credit losses	105,000	158,000
Net interest income after provision for credit losses	451,334	289,807
Other income
Mortgage banking revenues	41,476	56,233
Service charges on deposit accounts	120,295	101,029
Trust income	30,928	34,880
Brokerage services income	13,106	15,393
Trading account and foreign exchange gains	4,699	1,435
Gain on bank investment securities	459	575
Total other-than-temporary impairment ("OTTI") losses	(29,487)	(62,808)
Portion of OTTI losses recognized in other comprehensive income (before taxes)	2,685	30,609
Net OTTI losses recognized in earnings	(26,802)	(32,199)
Equity in earnings of Bayview Lending Group LLC	(5,714)	(4,144)
Other revenues from operations	79,259	59,139
Total other income	257,706	232,341
Other expense
Salaries and employee benefits	264,046	249,392
Equipment and net occupancy	55,401	48,172
Printing, postage and supplies	9,043	9,095
Amortization of core deposit and other intangible assets	16,475	15,370
FDIC assessments	21,348	5,856
Other costs of operations	123,049	110,461
Total other expense	489,362	438,346
Income before taxes	219,678	83,802
Income taxes	68,723	19,581
Net income	150,955	64,221
Net income available to common equity	$138,341	$55,322
Net income per common share
Basic	1.16	0.49
Diluted	1.15	0.49
Cash dividends per common share	0.7	0.7
Average common shares outstanding
Basic	117,765	110,439
Diluted	118,256	110,439

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities
Net income	$150,955	$64,221
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	105,000	158,000
Depreciation and amortization of premises and equipment	17,207	13,038
Amortization of capitalized servicing rights	14,645	15,954
Amortization of core deposit and other intangible assets	16,475	15,370
Provision for deferred income taxes	(10,163)	(11,948)
Asset write-downs	27,821	34,063
Net (gain) loss on sales of assets	1,461	(447)
Net change in accrued interest receivable, payable	98	12,423
Net change in other accrued income and expense	80,537	36,624
Net change in loans originated for sale	252,227	(263,004)
Net change in trading account assets and liabilities	(2,664)	311
Net cash provided by operating activities	653,599	74,605
Proceeds from sales of investment securities
Available for sale	14,759	5,550
Other	11,478	23,895
Proceeds from maturities of investment securities
Available for sale	369,136	496,247
Held to maturity	29,828	28,125
Purchases of investment securities
Available for sale	(34,084)	(21,702)
Held to maturity	(969,953)	(8,299)
Other	(428)	(619)
Net decrease in loans and leases	546,709	84,162
Other investments, net	(6,198)	(5,786)
Additions to capitalized servicing rights	(57)	(289)
Capital expenditures, net	(10,570)	(10,250)
Other, net	1,725	(12,772)
Net cash provided (used) by investing activities	(47,655)	578,262
Cash flows from financing activities
Net increase (decrease) in deposits	93,998	(103,205)
Net decrease in short-term borrowings	(571,827)	(367,924)
Payments on long-term borrowings	(252,880)	(520,549)
Dividends paid - common	(83,303)	(77,744)
Dividends paid - preferred	(10,056)	(4,333)
Other, net	15,451	6,382
Net cash used by financing activities	(808,617)	(1,067,373)
Net decrease in cash and cash equivalents	(202,673)	(414,506)
Cash and cash equivalents at beginning of period	1,246,342	1,568,151
Cash and cash equivalents at end of period	1,043,669	1,153,645
Supplemental disclosure of cash flow information
Interest received during the period	684,212	679,531
Interest paid during the period	121,445	206,417
Income taxes paid (refunded) during the period	14,250	(67,722)
Supplemental schedule of noncash investing and financing activities
Real estate acquired in settlement of loans	20,749	16,545
Securitization of residential mortgage loans allocated to
Available for sale investment securities		140,942
Capitalized servicing rights		788
Increase (decrease) from consolidation of securitization trusts:
Loans	423,865
Investment securities - available for sale	(360,471)
Long-term borrowings	65,419
Accrued interest and other	$2,025

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders Equity (Unaudited) (USD $)
In Thousands	Preferred stock	Common stock	Common stock issuable	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss), net	Treasury stock	Total
Begining Balance at Dec. 31, 2008	$567,463	$60,198	$4,617	$2,897,907	$5,062,754	($736,881)	($1,071,327)	$6,784,731
Comprehensive income:
Net income					64,221			64,221
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains on investment securities						110,839		110,839
Defined benefit plans liability adjustment						472		472
Unrealized (gain)/losses on terminated cash flow hedge/s						3,161		3,161
Other Comprehensive Income								178,693
Preferred stock cash dividends					(4,333)			(4,333)
Amortization of preferred stock discount	821				(821)
Stock-based compensation plans:
Compensation expense				(50,437)			72,160	21,723
Exercises of stock options				(1,568)			360	(1,208)
Directors' stock plan				(278)			600	322
Deferred compensation plans, net, including dividend equivalents			(429)	(497)	(50)		1,025	49
Common stock cash dividends - $0.70 per share					(78,138)			(78,138)
Ending Balance at Mar. 31, 2009	568,284	60,198	4,188	2,845,127	5,043,633	(622,409)	(997,182)	6,901,839
Begining Balance at Dec. 31, 2009	730,235	60,198	4,342	2,442,947	5,076,884	(335,997)	(225,702)	7,752,907
Comprehensive income:
Net income					150,955			150,955
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains on investment securities						79,856		79,856
Defined benefit plans liability adjustment						1,030		1,030
Unrealized (gain)/losses on terminated cash flow hedge/s						(70)		(70)
Other Comprehensive Income								231,771
Preferred stock cash dividends					(10,056)			(10,056)
Amortization of preferred stock discount	2,534				(2,534)
Repayment of management stock ownership program receivable				155				155
Stock-based compensation plans:
Compensation expense				(23,297)			43,138	19,841
Exercises of stock options and vesting of restricted stock awards				(8,471)			12,973	4,502
Directors' stock plan				(145)			408	263
Deferred compensation plans, net, including dividend equivalents			(269)	(258)	(48)		525	(50)
Other				471			(516)	(45)
Common stock cash dividends - $0.70 per share					(83,601)			(83,601)
Ending Balance at Mar. 31, 2010	$732,769	$60,198	$4,073	$2,411,402	$5,131,600	($255,181)	($169,174)	$7,915,687

2_Consolidated Statement of Cha

Consolidated Statement of Changes in Stockholders Equity (Unaudited) (Parenthetical) (Retained earnings, USD $)
	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Common stock per share dividend amount	0.7	0.7

Consolidated Summary of Changes

Consolidated Summary of Changes in Allowance for Credit Losses (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Condensed Summary of Changes in Allowance for Credit Losses [Abstract]
Beginning balance	$878,022	$787,904
Provision for credit losses	105,000	158,000
Consolidation of loan securitization trusts	2,752
Net charge-offs
Charge-offs	(106,039)	(110,605)
Recoveries	11,530	10,672
Total net charge-offs	(94,509)	(99,933)
Ending balance	$891,265	$845,971

Significant accounting policies

Significant accounting policies
	3 Months Ended Mar. 31, 2010
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 2009 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.

Acquisitions

Acquisitions
	3 Months Ended Mar. 31, 2010
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 third quarter of 2009. 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 consolidated statement of position or 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 investment securities. Liabilities assumed w

Investment securities

Investment securities
	3 Months Ended Mar. 31, 2010
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) March31, 2010 Investment securities available for sale: U.S. Treasury and federal agencies $ 98,431 1,713 39 $ 100,105 Obligations of states and political subdivisions 70,888 922 90 71,720 Mortgage-backed securities: Government issued or guaranteed 3,545,040 145,435 1,565 3,688,910 Privately issued residential 1,958,635 11,111 305,405 1,664,341 Privately issued commercial 31,356 6,231 25,125 Collateralized debt obligations 102,282 32,241 8,768 125,755 Other debt securities 310,996 22,965 48,270 285,691 Equity securities 143,430 6,685 14,496 135,619 6,261,058 221,072 384,864 6,097,266 Investment securities held to maturity: Obligations of states and political subdivisions 205,054 1,448 1,457 205,045 Mortgage-backed securities: Government issued or guaranteed 951,007 2,439 1,121 952,325 Privately issued mortgage-backed securities 341,618 137,442 204,176 Other debt securities 12,126 12,126 1,509,805 3,887 140,020 1,373,672 Other securities 497,575 497,575 Total $ 8,268,438 224,959 524,884 $ 7,968,513 December31, 2009 Investment securities available for sale: U.S. Treasury and federal agencies $ 102,755 1,988 57 $ 104,686 Obligations of states and political subdivisions 61,468 1,583 128 62,923 Mortgage-backed securities: Government issued or guaranteed 3,777,642 131,407 6,767 3,902,282 Privately issued residential 2,438,353 9,630 383,079 2,064,904 Privately issued commercial 33,133 7,967 25,166 Collateralized debt obligations 103,159 23,389 11,202 115,346 Other debt securities 309,514 16,851 58,164 268,201 Equity securities 170,985 5,590 15,705 160,870 6,997,009 190,438 483,069 6,704,378 Investment securities held to maturity: Obligations of states and political subdivisions 203,825 1,419 1,550 203,694 Privately issued mortgage-backed securities 352,195 150,993 201,202 Other debt securities

Borrowings

Borrowings
	3 Months Ended Mar. 31, 2010
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 March31, 2010 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. 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 contractual maturity contemporaneously with the optional redemption of the related Junior Subordinated Debentures in whole or in part, subject to possible regulat

Stockholders equity

Stockholders equity
	3 Months Ended Mar. 31, 2010
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 March 31, 2010 December 31, 2009 (dollars in thousands) SeriesA (a) Fixed Rate Cumulative Perpetual Preferred Stock, SeriesA, $1,000 liquidation preference per share, 600,000 shares authorized 600,000 $ 574,057 572,580 SeriesB (b) SeriesB Mandatory Convertible Non-cumulative Preferred Stock, $1,000 liquidation preference per share, 26,500 shares authorized 26,500 26,500 26,500 SeriesC (a)(c) Fixed Rate Cumulative Perpetual Preferred Stock, SeriesC, $1,000 liquidation preference per share, 151,500 shares authorized 151,500 132,212 131,155 (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 common shares at $73.86 per share, SeriesC 407,542 common shares at $55.76 per share). 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. The agreement with the U.S. Treasury contains limitations on certain actions of MT, including the payment of quarterly cash dividends on MTs common stock in excess of $.70 per share, the repurchase of its common stock during the first three years of the agreement, and the amount and nature of compensation arrangements for certain of the Companys officers. (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
	3 Months Ended Mar. 31, 2010
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 benefit cost for defined benefit plans consisted of the following: Other Pension postretirement benefits benefits Three months ended March 31, 2010 2009 2010 2009 (in thousands) Service cost $ 4,875 4,875 100 150 Interest cost on projected benefit obligation 12,029 11,015 780 900 Expected return on plan assets (12,788 ) (11,475 ) Amortization of prior service cost (1,650 ) (1,650 ) 25 75 Amortization of net actuarial loss 3,321 2,350 Net periodic benefit cost $ 5,787 5,115 905 1,125 Expense incurred in connection with the Companys defined contribution pension and retirement savings plans totaled $11,690,000 and $10,774,000 for the three months ended March31, 2010 and 2009, respectively.

Earnings per common share

Earnings per common share
	3 Months Ended Mar. 31, 2010
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 March 31, 2010 2009 (in thousands, except per share) Income available to common stockholders: Net income $ 150,955 64,221 Less: Preferred stock dividends (a) (10,056 ) (7,500 ) Amortization of preferred stock discount (a) (2,558 ) (1,399 ) Net income available to common equity 138,341 55,322 Less: Income attributable to unvested stock-based compensation awards (1,913 ) (704 ) Net income available to common stockholders $ 136,428 54,618 Weighted-average shares outstanding: Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards 119,324 111,298 Less: Unvested stock-based compensation awards (1,559 ) (859 ) Weighted-average shares outstanding 117,765 110,439 Basic earnings per common share $ 1.16 .49 (a) Including impact of not as yet declared cumulative dividends. The computations of diluted earnings per common share follow: Three months ended March 31, 2010 2009 (in thousands, except per share) Net income available to common equity $ 138,341 55,322 Less: Income attributable to unvested stock-based compensation awards (1,910 ) (704 ) Net income available to common stockholders 136,431 54,618 Adjusted weighted-average shares outstanding: Common and unvested stock-based compensation awards 119,324 111,298 Less: Unvested stock-based compensation awards (1,559 ) (859 ) Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock 491 Adjusted weighted-average shares outstanding 118,256 110,439 Diluted earnings per common share $ 1.15 .49 GAAP defines unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities that shall be included in the computation of earnings per common share pursuant to the two-class method. During the first quarters of 2010 and 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. Stock-based compensation awards, warrants to purchase common stock of MT and preferred stock convertible into shares of MT common stock representing approximately 11.9million and 15.0 million common shares during the three-month periods ended March31, 2010 and 2009, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

Comprehensive income

Comprehensive income
	3 Months Ended Mar. 31, 2010
Comprehensive income [Abstract]
Comprehensive income	8. Comprehensive income The following table displays the components of other comprehensive income: Three months ended March 31, 2010 Before-tax Income amount taxes Net (in thousands) Unrealized gains (losses) on investment securities: Available for sale (AFS) investment securities with other-than-temporary impairment (OTTI): Securities with OTTI charges during the period $ (29,487 ) 11,574 (17,913 ) Less: OTTI charges recognized in net income (26,802 ) 10,483 (16,319 ) Net unrealized losses on investment securities with OTTI (2,685 ) 1,091 (1,594 ) AFS investment securities all other: Unrealized holding gains during period 101,892 (39,882 ) 62,010 Less: reclassification adjustment for gains realized in net income (145 ) 44 (101 ) Less: securities with OTTI charges during the period (29,487 ) 11,574 (17,913 ) 131,524 (51,500 ) 80,024 Reclassification of unrealized holding losses to income during period on investment securities previously transferred from AFS to held to maturity (HTM) 2,347 (921 ) 1,426 Net unrealized gains on investment securities 131,186 (51,330 ) 79,856 Reclassification of gain on terminated cash flow hedge to income (112 ) 42 (70 ) Defined benefit plans liability adjustment 1,696 (666 ) 1,030 $ 132,770 (51,954 ) 80,816 Three months ended March 31, 2009 Before-tax Income amount taxes Net (in thousands) Unrealized gains (losses) on investment securities: AFS investment securities with OTTI: Securities with OTTI charges during the period $ (62,808 ) 24,566 (38,242 ) Less: OTTI charges recognized in net income (32,199 ) 12,590 (19,609 ) Net unrealized losses on investment securities with OTTI (30,609 ) 11,976 (18,633 ) AFS investment securities all other: Unrealized holding gains during period 147,229 (58,559 ) 88,670 Less: reclassification adjustment for gains realized in net income 27 (10 ) 17 Less: securities with OTTI charges during the period (62,808 ) 24,566 (38,242 ) 210,010 (83,115 ) 126,895 Reclassification of unrealized holding losses to income during period on investment securities previously transferred from AFS to HTM 3,456 (879 ) 2,577 Net unreali

Derivative Financial Instrument

Derivative Financial Instruments
	3 Months Ended Mar. 31, 2010
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 March31, 2010. The net effect of interest rate swap agreements was to increase net interest income by $11 million and $7million for the three months ended March31, 2010 and 2009, 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) March31,2010 Fair value hedges: Fixed rate time deposits (a) $ 25,000 3.5 5.30 % 0.36 % Fixed rate long-term borrowings (a) 1,037,241 6.2 6.33 % 2.11 % $ 1,062,241 6.2 6.30 % 2.07 % December31, 2009 Fair value hedges: Fixed rate time deposits (a) $ 25,000 3.7 5.30 % 0.34 % Fixed rate long-term borrowings (a) 1,037,241 6.5 6.33 % 2.12 % $ 1,062,241 6.4 6.30 % 2.07 % (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. Derivative financial instruments used for trading purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures. Interest rate contracts entered into for trading purposes had notional values of $12.8billion and $13.9billion at March31, 2010 and December31, 2009, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading purposes

Variable interest entities and

Variable interest entities and asset securitizations
	3 Months Ended Mar. 31, 2010
Variable interest entities and asset securitizations [Abstract]
Variable interest entities and asset securitizations	10. Variable interest entities and asset securitizations Effective January1, 2010, the Financial Accounting Standards Board (FASB) amended accounting guidance relating to the consolidation of variable interest entities to eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity. The amended guidance instead requires a reporting entity to qualitatively assess the determination of the primary beneficiary of a variable interest entity based on whether the reporting entity has the power to direct the activities that most significantly impact the variable interest entitys economic performance and has the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. The amended guidance requires ongoing reassessments of whether the reporting entity is the primary beneficiary of a variable interest entity. Also effective January1, 2010, the FASB amended accounting guidance relating to accounting for transfers of financial assets to eliminate the exceptions for qualifying special purpose entities from the consolidation guidance and the exception that permitted sale accounting for certain mortgage securitizations when a transferor has not surrendered control over the transferred assets. The recognition and measurement provisions of the amended guidance were required to be applied prospectively. Additionally, beginning January1, 2010, the concept of a qualifying special-purpose entity is no longer relevant for accounting purposes. Therefore, formerly qualifying special-purpose entities had to be re-evaluated for consolidation in accordance with applicable consolidation guidance, including the new accounting guidance relating to the consolidation of variable interest entities discussed in the previous paragraph. In 2002 and 2003, the Company transferred approximately $1.9billion of one-to-four family residential mortgage loans to qualified special purpose trusts in two non-recourse securitization transactions. In exchange for the loans, the Company received cash, no more than 88% of the resulting securities, and the servicing rights to the loans. Through December31, 2009, all of the retained securities were classified as investment securities available for sale as the qualified special purpose trusts were not included in the Companys consolidated financial statements. Effective January1, 2010, the Company determined that it was the primary beneficiary of both securitization trusts under the amended consolidation rules considering its role as servicer and its retained subordinated interests in the trusts. As a result, beginning January1, 2010, the Company has included the one-to-four family residential mortgage loans that were included in the two non-recourse securitization transactions in its consolidated financial statements. The effect of that consolidation on January1, 2010 was to increase loans receivable by $424million, decrease the amortized cost of available-for-sale investment securities by $360million (fair value of $355million), and increase borrowings by $65mil

Fair value measurements

Fair value measurements
	3 Months Ended Mar. 31, 2010
Fair value measurements [Abstract]
Fair value measurements	11. Fair value measurements GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections as of March31, 2010. 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 in

Commitments and contingencies

Commitments and contingencies
	3 Months Ended Mar. 31, 2010
Commitments and contingencies [Abstract]
Commitments and contingencies	12. 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. March 31, December 31, 2010 2009 (in thousands) Commitments to extend credit Home equity lines of credit $ 6,468,527 6,482,987 Commercial real estate loans to be sold 60,858 180,498 Other commercial real estate and construction 1,377,866 1,360,805 Residential real estate loans to be sold 639,728 631,090 Other residential real estate 133,493 127,788 Commercial and other 7,162,824 7,155,188 Standby letters of credit 3,799,656 3,828,586 Commercial letters of credit 68,919 66,377 Financial guarantees and indemnification contracts 1,727,648 1,633,549 Commitments to sell real estate loans 915,949 1,239,001 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 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 Fannie Mae Delegated Underwriting and Servicing program. The Companys maximum credit risk for recourse associated with loans sold under this program totaled approximately $1.4billion and $1.3billion at March31, 2010 and December31, 2009, 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. The Company utilizes commitments to sell real esta

Segment information

Segment information
	3 Months Ended Mar. 31, 2010
Segment information [Abstract]
Segment information	13. 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, 2009. 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 2009 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 March 31 2010 2009 Inter- Net Inter- Net Total segment income Total segment income revenues(a) revenues (loss) revenues(a) revenues (loss) (in thousands) Business Banking $ 101,796 25,344 93,635 30,112 Commercial Banking 192,406 76,868 165,127 57,154 Commercial Real Estate 110,413 18 43,753 88,964 6 42,983 Discretionary Portfolio (12,233 ) (2,747 ) (16,162 ) 11,298 (3,084 ) (5,089 ) Residential Mortgage Banking 63,117 8,197 595 80,011 11,869 5,500 Retail Banking 307,475 2,687 59,037 284,652 2,655 52,363 All Other 51,066 (8,155 ) (38,480 ) (43,539 ) (11,446 ) (118,802 ) Total $ 814,040 150,955 680,148 64,221 Average total assets Three months ended Year ended March 31 December 31 2010 2009 2009 (in millions) Business Banking $ 4,959 4,563 4,869 Commercial Banking 15,509 15,292 15,399 Commercial Real Estate 13,368 11,770 12,842 Discret

Relationship with Bayview Lendi

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.
	3 Months Ended Mar. 31, 2010
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.	14. 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 commercial mortgage lender. MT recognizes income from BLG using the equity method of accounting. The carrying value of that investment was $240million at March31, 2010. 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 obtained loan servicing rights for small-balance commercial mortgage loans from BLG and Bayview Financial having outstanding principal balances of $5.8billion and $5.5billion at March31, 2010 and December31, 2009, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $36million at March31, 2010 and $40million at December31, 2009. In addition, capitalized servicing rights at March31, 2010 and December31, 2009 also included $15million and $17million, respectively, for servicing rights that were obtained from Bayview Financial related to residential mortgage loans with outstanding principal balances of $4.0billion at March31, 2010 and $4.1billion at December31, 2009. Revenues from servicing residential and small-balance commercial mortgage loans obtained from BLG and Bayview Financial were $12million and $13million during the quarters ended March31, 2010 and 2009, respectively. MT Bank provided $10million and $34million of credit facilities to Bayview Financial at March31, 2010 and December31, 2009, respectively, of which $10million and $24 million was outstanding at March31, 2010 and December31, 2009, respectively. In addition, at each of March31, 2010 and December31, 2009, the Company held $25million of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. Finally, the Company held $342million and $352million of similar investment securities in its held-to-maturity portfolio at March31, 2010 and December31, 2009, respectively.

Relationship of M&T and AIB

Relationship of M&T and AIB
	3 Months Ended Mar. 31, 2010
Relationship of M&T and AIB [Abstract]
Relationship of M&T and AIB	15. Relationship of MT and AIB AIB received 26,700,000 shares of MT common stock on April1, 2003 as a result of MTs acquisition of a subsidiary of AIB on that date. Those shares of common stock owned by AIB represented 22.5% of the issued and outstanding shares of MT common stock on March31, 2010. While AIB maintains a significant ownership in MT, the Agreement and Plan of Reorganization between MT and AIB (Reorganization Agreement) includes several provisions related to the corporate governance of MT that provide AIB with representation on the MT and MT Bank boards of directors and key board committees and certain protections of its rights as a substantial MT shareholder. In addition, AIB has rights that facilitate its ability to maintain its proportionate ownership position in MT. With respect to AIBs right to have representation on the MT and MT Bank boards of directors and key board committees, for as long as AIB holds at least 15% of MTs outstanding common stock, AIB is entitled to designate four individuals, reasonably acceptable to MT, on both the MT and MT Bank boards of directors. In addition, one of the AIB designees to the MT board of directors will serve on each of the Executive; Nomination, Compensation and Governance; and Audit and Risk committees. Also, as long as AIB holds at least 15% of MTs outstanding common stock, neither the MT nor the MT Bank board of directors may consist of more than 28 directors without the consent of the MT directors designated by AIB. AIB will continue to enjoy these rights if its holdings of MT common stock drop below 15%, but not below 12%, so long as AIB restores its ownership percentage to 15% within one year. In the event that AIB holds at least 10%, but less than 15%, of MTs outstanding common stock, AIB will be entitled to designate at least two individuals on both the MT and MT Bank boards of directors and, in the event that AIB holds at least 5%, but less than 10%, of MTs outstanding common stock, AIB will be entitled to designate one individual on both the MT and MT Bank boards of directors. MT also has the right to appoint one representative to the AIB board while AIB remains a significant shareholder. There are several other corporate governance provisions that serve to protect AIBs rights as a substantial MT shareholder and are embodied in MTs certificate of incorporation and bylaws. These protections include an effective consent right in connection with certain actions by MT, such as amending MTs certificate of incorporation or bylaws in a manner inconsistent with AIBs rights, engaging in activities not permissible for a bank holding company or adopting any shareholder rights plan or other measures intended to prevent or delay any transaction involving a change in control of MT. AIB has the right to limit, with the agreement of at least one non-AIB designee on the MT board of directors, other actions by MT, such as reducing MTs cash dividend policy such that the ratio of cash dividends to net income is less than 15%, acquisitions and dispositions of significant amounts of assets, and the appointment or election of the chairman of the board of directors or the chief