Document and Company Information (USD $)	9 Months Ended
Document and Company Information (USD $)	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	Sep. 30, 2009
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 (Unaudited) (USD $) In Thousands, unless otherwise specified	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 (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	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 Income (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2009	Sep. 30, 2008	Sep. 30, 2009	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 Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2009	Sep. 30, 2008
Cash flows from operating activities
Net income	$ 243,073	$ 453,646
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	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	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
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 Changes in Stockholders Equity (Unaudited) (USD $) In Thousands, unless otherwise specified	Common stock	Preferred stock	Common stock issuable	Additional paid-in capital	Treasury stock	Retained earnings	Accumulated other comprehensive income (loss), net
Balance at Dec. 31, 2007	$ 60,198		$ 4,776	$ 2,848,752	$ (1,129,233)	$ 4,815,585	$ (114,822)
Comprehensive income:
Net income						453,646
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains (losses) on investment securities							(345,758)
Unrealized gains (losses) on terminated cash flow hedges							(459)
Defined benefit plans liability adjustment							(1,011)
Repayment of management stock ownership program receivable				72
Stock option and purchase plans:
Compensation expense				35,356	3,913
Exercises				(21,893)	37,756
Directors' stock plan				(384)	1,393
Deferred compensation plans, net, including dividend equivalents			(150)	(408)	787	(163)
Common stock cash dividends - $2.10 per share						(231,269)
Balance at Sep. 30, 2008	60,198		4,626	2,861,495	(1,085,384)	5,037,799	(462,050)
Balance at Dec. 31, 2008	60,198	567,463	4,617	2,897,907	(1,071,327)	5,062,754	(736,881)
Comprehensive income:
Net income						243,073
Other comprehensive income, net of tax and reclassification adjustments:
Unrealized gains (losses) on investment securities							309,150
Unrealized gains (losses) on terminated cash flow hedges							6,627
Defined benefit plans liability adjustment							1,818
Repayment of management stock ownership program receivable				195
Acquisition of Provident Bankshares Corporation:
Preferred stock issued		155,779
Common stock issued				(348,080)	620,904
Common stock options				1,367
Common stock warrants				6,467
Issuance of common stock to defined benefit pension plan				(51,417)	95,706
Preferred stock cash dividends						(21,890)
Amortization of preferred stock discount		4,506				(4,506)
Stock option and purchase plans:
Compensation expense				(31,677)	74,642
Exercises				(24,335)	31,751
Directors' stock plan				(1,082)	2,050
Deferred compensation plans, net, including dividend equivalents			(326)	(502)	1,035	(152)
Common stock cash dividends - $2.10 per share						(243,471)
Balance at Sep. 30, 2009	$ 60,198	$ 727,748	$ 4,291	$ 2,448,843	$ (245,239)	$ 5,035,808	$ (419,286)

Consolidated Summary of Changes In Allowance For Credit Losses (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2009	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

- Definition

The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically identified loans and leases, as well as probable credit losses inherent in the remainder of the loan portfolio as of the balance sheet date. For banks, include currently required allocated transfer risk reserves. Include carryover of or adjustments to the allowance for loan losses in connection with business combinations determined to be appropriate.

+ References+ Details

Significant accounting policies	9 Months Ended
Significant accounting policies	Sep. 30, 2009
Significant accounting policies [Abstract]
Significant accounting policies	1. Significant accounting policies The consolidated financial statements of M&T Bank Corporation (“M&T”) 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

9 Months Ended

Sep. 30, 2009

Acquisitions [Abstract]

Acquisitions

2. Acquisitions

On August 28, 2009, M&T Bank, M&T’s 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, M&T Bank entered into a loss-share arrangement with the FDIC whereby M&T 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 $469 million, including $302 million of loans, and liabilities assumed aggregated $440 million, including $361 million of deposits. In accordance with GAAP, M&T Bank recorded an after-tax gain on the transaction of $18 million ($29 million 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 Company’s statement of condition nor is it expected to have a material impact on the Company’s results of operations.

On May 23, 2009, M&T 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, Provident’s banking subsidiary, was merged into M&T Bank on that date. The results of operations acquired in the Provident transaction have been included in the Company’s financial results since May 23, 2009. Provident common shareholders received .171625 shares of M&T common stock in exchange for each share of Provident common stock, resulting in M&T issuing a total of 5,838,308 common shares with an acquisition date fair value of $273 million. 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 M&T. Those options had an estimated fair value of $1 million. In total, the purchase price was approximately $274 million based on the fair value on the acquisition date of M&T common stock exchanged and the options to purchase M&T common stock. Holders of Provident’s preferred stock were issued shares of new Series B and Series C Preferred Stock of M&T having substantially identical terms. That preferred stock and warrants to purchase common stock associated with the Series C Preferred Stock added $162 million to M&T’s 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 $6.3 billion, including $4.0 billion of loans and leases (including approximately $1.7 billion of commercial real estate loans, $1.4 billion of consumer loans, $700 million of commercial loans and leases and $300 million of residential real estate loans) and $1.0 billion of investment securities.

Liabilities assumed were $5.9 billion, including $5.1 billion of deposits. The transaction added $436 million to M&T’s stockholders’ equity, including $280 million of common equity and $156 million of preferred equity. In connection with the acquisition, the Company recorded $332 million of goodwill and $63 million of core deposit intangible. The core deposit intangible is being amortized over seven years using an accelerated method. The acquisition of Provident expanded the Company’s presence in the Mid-Atlantic area, gave the Company the second largest deposit share in Maryland, and tripled the Company’s presence in Virginia.

In many cases, determining the fair value of the acquired assets and assumed liabilities required the Company to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of these determinations related to the fair valuation of acquired loans. For such loans, the excess of cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and other factors, such as prepayments. In accordance with GAAP, there was no carry over of Provident’s previously established allowance for credit losses. Subsequent decreases in the expected cash flows will require the Company to evaluate the need for additions to the Company’s allowance for credit losses. Subsequent improvements in expected cash flows will result in the recognition of additional interest income over the then remaining lives of the loans.

In conjunction with the Provident acquisition, the acquired loan portfolio was accounted for at fair value as follows:


	May 23, 2009
	(in thousands)
Contractually required principal and interest at acquisition	$	5,465,167
Contractual cash flows not expected to be collected		(832,115	)

Expected cash flows at acquisition		4,633,052
Interest component of expected cash flows		(595,685	)

Basis in acquired loans at acquisition — estimated fair value	$	4,037,367

Interest income on acquired loans for the third quarter of 2009 and for the period from date of acquisition to September 30, 2009 was approximately $44 million and $63 million, respectively. The outstanding principal balance and the carrying amount of these loans that is included in the consolidated balance sheet at September 30, 2009 is as follows:


	(in thousands)
Outstanding principal balance	$	4,073,669
Carrying amount		3,826,534

Receivables (including loans and investment securities) obtained in the acquisition of Provident for which there is specific evidence of credit deterioration and for which it was probable that the Company would be unable to collect all contractually required principal and interest payments represent less than .25% of the Company’s assets and, accordingly, are not considered material.

In connection with the acquisition of Provident, goodwill of $332 million was calculated after recording all other acquired assets and liabilities at estimated fair value. In management’s opinion, that goodwill represents the inherent long-term value expected from the business opportunities and synergies created from combining Provident with the Company.

The consideration paid for Provident’s common equity and the amounts of acquired identifiable assets and liabilities and preferred equity assumed as of the acquisition date was as follows:


	(in thousands)
Purchase price:
Value of:
Common shares issued (5,838,308 shares)	$	272,824
Stock options		1,367
Fractional common shares paid in cash		117

Total purchase price		274,308


Identifiable assets:
Cash and due from banks		144,126
Investment securities		1,039,350
Loans and leases		4,037,367
Core deposit intangible		63,177
Other assets		698,860

Total		5,982,880


Liabilities and equity:
Deposits		5,060,546
Short-term borrowings		176,515
Long-term borrowings		580,740
Other liabilities		61,022

Total liabilities		5,878,823
Preferred stock and common stock warrants		162,246

Total		6,041,069


Net liabilities and preferred equity assumed		58,189


Goodwill resulting from acquisition	$	332,497

None of the goodwill recognized will be deductible for income tax purposes. Changes in goodwill in the Company’s consolidated balance sheet from December 31, 2008 to September 30, 2009 were attributable to the acquisition of Provident. As described in note 12, the Company does not allocate goodwill to its reportable segments when compiling the assets associated with those segments. The Company does, however, allocate goodwill to segments for purposes of periodically testing goodwill for impairment. That allocation of goodwill to the Company’s segments is as follows:


			Provident
	December 31, 2008		acquisition		September 30, 2009
	(in thousands)
Business Banking	$	683,137		65,770		748,907
Commercial Banking		885,290		22,234		907,524
Commercial Real Estate		274,506		74,691		349,197
Discretionary Portfolio		—		—		—
Residential Mortgage Banking		—		—		—
Retail Banking		974,602		169,802		1,144,404
All Other		374,593		—		374,593

Total	$	3,192,128		332,497		3,524,625

The following table discloses the impact of Provident (excluding the impact of merger-related expenses noted below) since the acquisition on May 23, 2009 through the end of the third quarter of 2009. The table also presents certain pro forma information for 2009 as if Provident had been acquired on January 1, 2009 and for 2008 as if Provident had been acquired on January 1, 2008. These results combine the historical results of Provident into the Company’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair valuation adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on the indicated dates. In particular, no adjustments have been made to eliminate the amount of Provident’s provision for credit losses of $42 million in 2009 and $16 million in 2008 or the impact of other-than-temporary impairment losses recognized by Provident of $87 million in 2009 and $88 million in 2008 that would not have been necessary had the acquired loans and investment securities been recorded at fair value as of the beginning of each year. Furthermore, expenses related to systems conversions and other costs of integration are included in the 2009 periods in which such costs were incurred. Additionally, the Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts that follow.


	Actual since		Pro forma
	acquisition		Nine months ended
	through		September 30,
	September 30, 2009		2009		2008
	(in thousands)
Total revenues	$	116,016		2,864,760		3,449,661
Net income		18,583		157,653		440,657

Merger-related expenses associated with the acquisition of Provident and with the Bradford transaction were $14 million and $83 million during the three- and nine-month periods ended September 30, 2009, respectively. Such expenses were for professional services and other temporary help fees associated with the conversion of systems and/or integration of operations; costs related to branch and office consolidations; costs related to termination of existing Provident contractual arrangements for various services; initial marketing and promotion expenses designed to introduce M&T Bank to its new customers; severance and incentive compensation costs; travel costs; and printing, supplies and other costs of commencing operations in new markets and offices. The Company expects to incur additional merger-related expenses. As of September 30, 2009, the remaining unpaid portion of merger-related expenses was $26 million.

A summary of merger-related expenses associated with the Bradford and Provident acquisitions included in the consolidated statement of income follows:


	Three months ended		Nine months ended
	September 30, 2009		September 30, 2009
	(in thousands)
Salaries and employee benefits	$	870		9,649
Equipment and net occupancy		1,845		2,430
Printing, postage and supplies		629		3,444
Other costs of operations		10,666		67,370

	$	14,010		82,893

Investment securities

9 Months Ended

Sep. 30, 2009

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)
September 30, 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)
December 31, 2008
Investment securities available for sale:
U.S. Treasury and federal agencies	$	290,893		6,203		383	$	296,713
Obligations of states and political subdivisions		70,425		1,641		303		71,763
Mortgage-backed securities:
Government issued or guaranteed		3,525,196		93,578		5,994		3,612,780
Privately issued residential		3,104,209		484		778,139		2,326,554
Privately issued commercial		49,231		—		8,185		41,046
Collateralized debt obligations		18,088		—		15,592		2,496
Other debt securities		245,685		18		77,601		168,102
Equity securities		352,908		581		22,750		330,739

		7,656,635		102,505		908,947		6,850,193

Investment securities held to maturity:
Obligations of states and political subdivisions		63,822		1,715		71		65,466
Privately issued residential mortgage-backed securities		411,847		—		92,730		319,117
Other debt securities		10,169		—		—		10,169

		485,838		1,715		92,801		394,752

Other securities		583,176		—		—		583,176

Total	$	8,725,649		104,220		1,001,748	$	7,828,121

Gross realized gains on investment securities were $4 thousand and $365 thousand during the three months ended September 30, 2009 and 2008, respectively, and $1 million and $34 million during the nine-month periods ended September 30, 2009 and 2008, respectively. Gross realized losses on investment securities were $60 thousand and $59 thousand during the third quarters of 2009 and 2008, respectively, and $462 thousand and $257 thousand during the nine-month periods ended September 30, 2009 and 2008, respectively. Effective January 1, 2009, the Company adopted new GAAP related to the recognition and presentation of other-than-temporary impairments of investment securities. In accordance with GAAP, the Company recognized $47 million and $104 million of pre-tax other-than-temporary impairment losses during the three and nine months ended September 30, 2009, respectively, related primarily to certain privately issued residential mortgage-backed securities. The impairment charges were recognized in light of deterioration of housing values in the residential real estate market and a rise in delinquencies and charge-offs of underlying mortgage loans collateralizing those securities. Approximately $3 million of impairment charges recognized in the third quarter of 2009 related to securities backed by trust preferred securities issued by financial institutions. The other-than-temporary impairment losses recognized were net of $17 million and $99 million of unrealized losses classified in accumulated other comprehensive income for the same securities for the three and nine months ended September 30, 2009, respectively. The other-than-temporary impairment losses represent management’s estimate of credit losses inherent in the securities considering projected cash flows using assumptions of delinquency rates, loss severities, and other estimates of future collateral performance. Other-than-temporary impairment losses on investment securities of $153 million and $158 million were recognized by the Company for the three and nine months ended September 30, 2008, primarily related to its preferred stock holdings of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. The effect of the adoption of the new accounting requirements on debt securities previously reported as other-than-temporarily impaired was not material and, therefore, the Company did not record a transition adjustment as of January 1, 2009. Changes in credit losses during the three and nine months ended September 30, 2009 associated with debt securities for which other-than-temporary impairment losses have been previously recognized in earnings follows:


	Debt securities
	(in thousands)
Estimated credit losses as of June 30, 2009	$	205,918
Additions for credit losses not previously recognized		47,033
Reductions for increases in cash flows		(254	)
Reductions for realized losses		(425	)

Estimated credit losses as of September 30, 2009	$	252,272


Estimated credit losses as of January 1, 2009	$	155,967
Additions for credit losses not previously recognized		104,001
Reductions for increases in cash flows		(1,201	)
Reductions for realized losses		(6,495	)

Estimated credit losses as of September 30, 2009	$	252,272

At September 30, 2009, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:


	Amortized		Estimated
	cost		fair value
	(in thousands)
Debt securities available for sale:
Due in one year or less	$	44,391		44,872
Due after one year through five years		90,344		92,599
Due after five years through ten years		41,956		43,309
Due after ten years		410,947		374,958

		587,638		555,738
Mortgage-backed securities available for sale		6,106,990		5,830,770

	$	6,694,628		6,386,508


Debt securities held to maturity:
Due in one year or less	$	44,206		44,441
Due after one year through five years		7,559		7,957
Due after five years through ten years		103,665		105,813
Due after ten years		69,123		70,155

		224,553		228,366
Mortgage-backed securities held to maturity		374,190		202,670

	$	598,743		431,036

A summary of investment securities that as of September 30, 2009 and December 31, 2008 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:


	Less than 12 months					12 months or more
			Unrealized					Unrealized
	Fair value		losses			Fair value		losses
	(in thousands)
September 30, 2009
U.S. Treasury and federal agencies	$	2,302		(13	)		568		(6	)
Obligations of states and political subdivisions		4,792		(65	)		4,640		(93	)
Mortgage-backed securities:
Government issued or guaranteed		37,865		(197	)		24,771		(485	)
Privately issued residential		62,998		(40,268	)		1,928,822		(553,900	)
Privately issued commercial		—		—			23,541		(11,284	)
Collateralized debt obligations		4,374		(575	)		4,581		(4,510	)
Other debt securities		10,363		(458	)		151,112		(70,532	)
Equity securities		4,148		(1,489	)		23,037		(9,864	)

Total	$	126,842		(43,065	)		2,161,072		(650,674	)


December 31, 2008
U.S. Treasury and federal agencies	$	6,660		(383	)		—		—
Obligations of states and political subdivisions		26,456		(315	)		2,182		(59	)
Mortgage-backed securities:
Government issued or guaranteed		392,780		(4,962	)		175,943		(1,032	)
Privately issued residential		2,173,593		(629,321	)		460,355		(241,548	)
Privately issued commercial		—		—			41,046		(8,185	)
Collateralized debt obligations		—		(2,221	)		1,520		(13,397	)
Other debt securities		102,882		(15,563	)		60,902		(62,012	)
Equity securities		37,905		(22,720	)		9		(30	)

Total	$	2,740,276		(675,485	)		741,957		(326,263	)

The Company owned 473 individual investment securities with aggregate gross unrealized losses of $694 million at September 30, 2009. Approximately $594 million of the unrealized losses pertain to privately issued residential mortgage-backed securities with a cost basis of $2.6 billion. The Company also had $73 million of unrealized losses on trust preferred securities issued by financial institutions and securities backed by trust preferred securities issued by financial institutions and other entities having a cost basis of $239 million. Based on a review of each of the securities in the investment securities portfolio at September 30, 2009, with the exception of the aforementioned securities for which other-than-temporary impairment losses were recognized, the Company concluded that it expected to recover the amortized cost basis of its investment. As of September 30, 2009, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities. At September 30, 2009, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $513 million of cost method investment securities.

- Definition

This item represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References+ Details

Borrowings	9 Months Ended
Borrowings	Sep. 30, 2009
Borrowings [Abstract]
Borrowings	4. Borrowings The Company had $1.2 billion of fixed and floating rate junior subordinated deferrable interest debentures (“Junior Subordinated Debentures”) outstanding at September 30, 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 M&T and are the only class of each trust’s securities possessing general voting powers. The Capital Securities represent preferred undivided interests in the assets of the corresponding trust. Under the Federal Reserve Board’s current risk-based capital guidelines, the Capital Securities are includable in M&T’s Tier 1 capital. As a result of the acquisition of Provident, M&T assumed $133 million of Junior Subordinated Debentures that mature at various dates from 2028 to 2033. Holders of the Capital Securities receive preferential cumulative cash distributions unless M&T 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, M&T 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 $350 million of Junior Subordinated Debentures due January 31, 2068, M&T must fund the payment of accrued and unpaid interest through an alternative payment mechanism, which requires M&T to issue common stock, non-cumulative perpetual preferred stock or warrants to purchase common stock until M&T 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 January 31, 2068. In general, the agreements governing the Capital Securities, in the aggregate, provide a full, irrevocable and unconditional guarantee by M&T 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 M&T. 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 regulatory approval. In connection with the issuance of 8.50% Enhanced Trust Preferred Securities associated with $350 million of Junior Subordinated Debentures maturing in 2068, M&T entered into a replacement capital covenant that provides that neither M&T nor any of its subsidiaries will repay, redeem or purchase any of the Junior Subordinated Debentures due January 31, 2068 or the 8.50% Enhanced Trust Preferred Securities prior to January 31, 2048, with certain limited exceptions, except to the extent that, during the 180 days prior to the date of that repayment, redemption or purchase, M&T and its subsidiaries have received proceeds from the sale of qualifying securities that (i) have equity-like characteristics that are the same as, or more equity-like than, the applicable characteristics of the 8.50% Enhanced Trust Preferred Securities or the Junior Subordinated Debentures due January 31, 2068, as applicable, at the time of repayment, redemption or purchase, and (ii) M&T has obtained the prior approval of the Federal Reserve Board, if required. On June 30, 2009, M&T retired $12 million of Junior Subordinated Debentures for which Provident had been the owner of the related Capital Securities. Including the unamortized portions of purchase accounting adjustments to reflect estimated fair value at the acquisition dates of the Common Securities of various trusts and reflecting the noted cancellation of Junior Subordinated Debentures on June 30, 2009, the Junior Subordinated Debentures associated with Capital Securities had financial statement carrying values of $1.2 billion and $1.1 billion as of September 30, 2009 and December 31, 2008, respectively.

Stockholders equity

9 Months Ended

Sep. 30, 2009

Stockholders' equity [Abstract]

Stockholders' equity

5. Stockholders’ equity

M&T 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 M&T is presented below:

Carrying

issued and

value

outstanding

September 30, 2009

December 31, 2008

(dollars in thousands)

Series A (a)

Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference per share, 600,000 shares authorized

600,000

571,125

567,463

Series B (b)

Series B Mandatory Convertible Non-cumulative Preferred Stock, $1,000 liquidation preference per share, 26,500 shares authorized

26,500

—

Series C (a)(c)

Fixed Rate Cumulative Perpetual Preferred Stock, Series C, $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 M&T common stock (Series A — 1,218,522 shares, Series C — 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 Series B Preferred Stock was designated. In the aggregate, the shares of Series B Preferred Stock will automatically convert into 433,148 shares of M&T common stock on April 1, 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 Series C Preferred Stock was designated.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References+ Details

Pension plans and other postretirement benefits

9 Months Ended

Sep. 30, 2009

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 Company’s defined contribution pension and retirement savings plans totaled $8,061,000 and $7,758,000 for the three months ended September 30, 2009 and 2008, respectively, and $27,166,000 and $26,075,000 for the nine months ended September 30, 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 M&T having a fair value of $44 million.

- Definition

Description containing the entire pension and other postretirement benefits disclosure as a single block of text.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 158

-Paragraph 7, 21, 22

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5, 6, 7, 8

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 8

-Subparagraph m

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph b

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph q

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS106-2

-Paragraph 20, 21, 22

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 03-2

-Paragraph 8

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 30

-Paragraph 26

Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Implementation Guide (Q and A)

-Number FAS88

-Paragraph 63

+ Details

Earnings per common share

9 Months Ended

Sep. 30, 2009

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 Company’s earnings per common share are calculated using the two-class method. The effects of the application of the two-class method to previously reported earnings per common share amounts were immaterial.

Stock-based compensation awards and warrants to purchase common stock of M&T representing approximately 14.7 million and 11.3 million common shares during the three-month periods ended September 30, 2009 and 2008, respectively, and 14.9 million and 9.7 million common shares during the nine-month periods ended September 30, 2009 and 2008, 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

9 Months Ended

Sep. 30, 2009

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 cash flow hedges to income		19,483			(7,604	)		11,879

		(742	)		283			(459	)


Defined benefit plans liability adjustment		(1,724	)		713			(1,011	)


	$	(572,720	)		225,492			(347,228	)

Accumulated other comprehensive income (loss), net consisted of unrealized gains (losses) as follows:


							Cash			Defined
	Investment securities						flow			benefit
	With OTTI			All other			hedges			plans			Total
	(in thousands)
Balance — January 1, 2009	$	—			(556,668	)		(5,883	)		(174,330	)		(736,881	)

Net gain (loss) during period		(60,102	)		369,252			6,627			1,818			317,595


Balance — September 30, 2009	$	(60,102	)		(187,416	)		744			(172,512	)		(419,286	)


Balance — January 1, 2008				$	(59,406	)		(8,931	)		(46,485	)		(114,822	)

Net gain (loss) during period					(345,758	)		(459	)		(1,011	)		(347,228	)


Balance — September 30, 2008				$	(405,164	)		(9,390	)		(47,496	)		(462,050	)

- Definition

This label may include the following: 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. Components of comprehensive income include: (1) foreign currency translation adjustments; (2) gains and losses on foreign currency transactions that are designated as, and are effective as, economic hedges of a net investment in a foreign entity; (3) gains and losses on intercompany foreign currency transactions that are of a long-term-investment nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements; (4) change in the market value of a futures contract that qualifies as a hedge of an asset reported at fair value; (5) unrealized holding gains and losses on available-for-sale securities and that resulting from transfers of debt securities from the held-to-maturity category to the available-for-sale category; (6) a net loss recognized as an additional pension liability not yet recognized as net periodic pension cost; and (7) the net gain or loss and net prior service cost or credit for pension plans and other postretirement benefit plans.

+ References+ Details

Derivative financial instruments

9 Months Ended

Sep. 30, 2009

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 Company’s 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 Company’s 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 September 30, 2009.

The net effect of interest rate swap agreements was to increase net interest income by $10 million and $5 million for the three months ended September 30, 2009 and 2008, respectively, and $27 million and $11 million for the nine months ended September 30, 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)
September 30, 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	%


December 31, 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 Company’s consolidated balance sheet with the corresponding gain or loss recognized in current earnings. The difference between changes in the fair values of the interest rate swap agreements and the hedged items represents hedge ineffectiveness and is recorded in “other revenues from operations” in the consolidated statement of income. In a cash flow hedge, the effective portion of the derivative’s unrealized gain or loss is initially recorded as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings. The ineffective portion of the unrealized gain or loss is reported in “other revenues from operations” immediately. The amount of hedge ineffectiveness recognized in the three- and nine month periods ended September 2009 and 2008 was not material to the Company’s results of operations.

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 $14.7 billion and $14.6 billion at September 30, 2009 and December 31, 2008, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading purposes aggregated $809 million and $713 million at September 30, 2009 and December 31, 2008, respectively.

Information about the fair values of derivative instruments in the Company’s consolidated balance sheet and consolidated statement of income follows:


	Asset derivatives				Liability derivatives
	Fair value				Fair value
	September 30,		December 31,		September 30,		December 31,
	2009		2008		2009		2008
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	83,069		146,111	$	—		—
Commitments to sell real estate loans (a)		115		1,128		5,097		13,604

		83,184		147,239		5,097		13,604

Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		13,958		11,132		38		2,988
Commitments to sell real estate loans (a)		426		5,875		7,982		8,876
Trading:
Interest rate contracts (b)		386,240		513,230		357,363		481,671
Foreign exchange and other option and futures contracts (b)		27,917		38,885		27,162		39,408

		428,541		569,122		392,545		532,943


Total derivatives	$	511,725		716,361	$	397,642		546,547


(a)		Asset derivatives are reported in other assets and liability derivatives are reported in other liabilities.

(b)		Asset derivatives are reported in trading account assets and liability derivatives are reported in other liabilities.


	Amount of unrealized gain (loss) recognized
	Three months ended						Three months ended
	September 30, 2009						September 30, 2008
	Derivative			Hedged item			Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships

Interest rate swap agreements:
Fixed rate time deposits (a)	$	(133	)		133			(171	)		165
Fixed rate long-term borrowings (a)		19,265			(18,349	)		12,905			(12,080	)


Total	$	19,132			(18,216	)		12,734			(11,915	)


Derivatives not designated as hedging instruments

Trading:
Interest rate contracts (b)	$	(1,421	)					642
Foreign exchange and other option and futures contracts (b)		604						(285	)


Total	$	(817	)					357


	Amount of unrealized gain (loss) recognized
	Nine months ended					Nine months ended
	September 30, 2009					September 30, 2008
	Derivative			Hedged item		Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships

Interest rate swap agreements:
Fixed rate time deposits (a)	$	(1,527	)		1,520		(1,596	)		1,574
Fixed rate long-term borrowings (a)		(62,452	)		58,476		(10,765	)		10,975


Total	$	(63,979	)		59,996		(12,361	)		12,549


Derivatives not designated as hedging instruments

Trading:
Interest rate contracts (b)	$	(2,778	)				4,511
Foreign exchange and other option and futures contracts (b)		1,536					491


Total	$	(1,242	)				5,002


(a)		Reported as other revenues from operations.

(b)		Reported as trading account and foreign exchange gains.

In addition, the Company also has commitments to sell and commitments to originate residential and commercial real estate loans, which are considered derivatives. The Company designates certain of the commitments to sell real estate loans as fair value hedges of real estate loans held for sale. Changes in unrealized gains and losses are included in mortgage banking revenues and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied. Those unrealized gains and losses reflect both changes in the value of loans and commitments as well as changes in volume of the loans and commitments outstanding as of each respective period-end date. For the three months ended September 30, 2009, net unrealized pre-tax losses of $22,672,000 related to commitments to sell real estate loans, net unrealized pre-tax gains of $4,244,000 related to commitments to originate real estate loans and net unrealized pre-tax gains of $8,308,000 related to hedged real estate loans held for sale were recognized in the consolidated statement of income. For the three months ended September 30, 2008, net unrealized pre-tax gains of $4,505,000 related to commitments to sell real estate loans, net unrealized pre-tax losses of $5,834,000 related to commitments to originate real estate loans and net unrealized pre-tax gains of $1,048,000 related to hedged real estate loans held for sale were recognized in the consolidated statement of income. For the nine months ended September 30, 2009, net unrealized pre-tax gains of $2,939,000 related to commitments to sell real estate loans, net unrealized pre-tax gains of $5,654,000 related to commitments to originate real estate loans and net unrealized pre-tax losses of $3,302,000 related to hedged real estate loans held for sale were recognized in the consolidated statement of income. For the nine months ended September 30, 2008, net unrealized pre-tax gains of $11,430,000 related to commitments to sell real estate loans, net unrealized pre-tax losses of $4,952,000 related to commitments to originate real estate loans and net unrealized pre-tax losses of $6,606,000 related to hedged real estate loans held for sale were recognized in the consolidated statement of income.

The aggregate fair value of derivative financial instruments in a net liability position at September 30, 2009 for which the Company was required to post collateral was $266 million. The fair value of collateral posted for such instruments was $260 million.

The Company’s credit exposure with respect to the estimated fair value as of September 30, 2009 of interest rate swap agreements used for managing interest rate risk has been substantially mitigated through master netting arrangements with trading account interest rate contracts with the same counterparties as well as counterparty postings of $54 million of collateral with the Company.

Fair value measurements

9 Months Ended

Sep. 30, 2009

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 Company’s 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 Company’s 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 Company’s 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 Company’s 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, such valuations have been classified as Level 2. Certain investments in mutual funds and equity securities are actively traded and therefore have been classified as Level 1 valuations.

Due to the severe disruption in the credit markets during the second half of 2008 and continuing into 2009, trading activity in privately issued mortgage-backed securities was very limited. The markets for such securities were generally characterized by a sharp reduction of non-agency mortgage-backed securities issuances, a significant reduction in trading volumes and extremely wide bid-ask spreads, all driven by the lack of market participants. Although estimated prices were generally obtained for such securities, the Company was significantly restricted in the level of market observable assumptions used in the valuation of its privately issued mortgage-backed securities portfolio. Specifically, market assumptions regarding credit adjusted cash flows and liquidity influences on discount rates were difficult to observe at the individual bond level. Because of the inactivity in the markets and the lack of observable valuation inputs, the Company has classified the valuation of privately issued mortgage-backed securities as Level 3.

In April 2009, the Financial Accounting Standards Board (“FASB”) issued new accounting rules that provided guidance for estimating fair value when the volume and level of trading activity for an asset or liability have significantly decreased. The Company has concluded that there has been a significant decline in the volume and level of activity in the market for privately issued mortgage-backed securities. As a result, the Company supplemented its determination of fair value for many of its privately issued mortgage-backed securities by obtaining pricing indications from two independent sources at September 30, 2009. The Company further ascertained that many of the recently observable trades in the market for privately issued residential mortgage-backed securities could not be determined to be orderly. As a result, the Company also performed internal modeling to estimate the cash flows and fair value of 148 of its privately issued residential mortgage-backed securities with an amortized cost basis of $2.0 billion at September 30, 2009. The Company’s internal modeling techniques included discounting estimated bond-specific cash flows using assumptions about cash flows associated with loans underlying each of the bonds, including estimates about the timing and amount of credit losses and prepayments. In estimating those cash flows, the Company used conservative assumptions as to future delinquency, defaults and loss rates, including assumptions for further home price depreciation. Differences between internal model valuations and external pricing indications were generally considered to be reflective of the lack of liquidity in the market for privately issued mortgage-backed securities given the conservative nature of the cash flow modeling performed in the Company’s assessment of value. To determine the point within the range of potential values that was most representative of fair value under current market conditions for each of the 148 bonds, the Company computed values based on judgmentally applied weightings of the internal model valuations and the indications obtained from the average of the two independent pricing sources. Weightings applied to internal model valuations generally ranged from zero to 40% depending on bond structure and collateral type, with prices for bonds in non-senior tranches generally receiving lower weightings on the internal model results and senior bonds receiving a higher model weighting. Weighted-average reliance on internal model pricing for the bonds modeled was 36% with a 64% average weighting placed on the values provided by the independent sources. The Company concluded its estimate of fair value for the $2.0 billion of privately issued residential mortgage-backed securities to approximate $1.7 billion, which implies a weighted-average market yield based on reasonably likely cash flows of 10.5%. Other valuations of privately issued residential mortgage-backed securities with an amortized cost basis of $569 million and fair value of $526 million, primarily comprised of retained securities from two non-recourse securitization transactions executed by the Company in 2002 and 2003, and other privately issued commercial mortgage-backed securities with an amortized cost basis of $35 million and a fair value of $24 million were determined by reference to independent pricing sources without adjustment.

Included in collateralized debt obligations are securities backed by trust preferred securities issued by financial institutions and other entities. Given the severe disruption in the credit markets and lack of observable trade information, the Company could not obtain pricing indications for many of these securities from its two primary independent pricing sources. The Company, therefore, performed internal modeling to estimate the cash flows and fair value of its portfolio of securities backed by trust preferred securities at September 30, 2009. The modeling techniques included discounting estimated cash flows using bond-specific assumptions about defaults, deferrals and prepayments of the trust preferred securities underlying each bond. The estimation of cash flows included conservative assumptions as to the future collateral defaults and the related loss severities. The resulting cash flows were then discounted by reference to market yields observed in the single-name trust preferred securities market. At September 30, 2009, both the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities was $107 million and $131 million, respectively. Privately issued mortgage-backed securities and securities backed by trust preferred securities issued by financial institutions and other entities constituted substantially all of the available for sale investment securities classified as Level 3 valuations as of September 30, 2009.

Real estate loans held for sale

The Company utilizes commitments to sell real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. The carrying value of hedged real estate loans held for sale includes changes in estimated fair value during the hedge period. Typically, the Company attempts to hedge real estate loans held for sale from the date of close through the sale date. The fair value of hedged real estate loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans with similar characteristics and, as such, have been classified as a Level 2 valuation.

Commitments to originate real estate loans for sale and commitments to sell real estate loans

The Company enters into various commitments to originate real estate loans for sale and commitments to sell real estate loans. Such commitments are considered to be derivative financial instruments and, therefore, are carried at estimated fair value on the consolidated balance sheet. The estimated fair values of such commitments were generally calculated by reference to quoted prices in secondary markets for commitments to sell real estate loans to certain government-sponsored entities and other parties. The fair valuations of commitments to sell real estate loans generally result in a Level 2 classification. The estimated fair value of commitments to originate real estate loans for sale are adjusted to reflect the Company’s anticipated commitment expirations. Estimated commitment expirations are considered a significant unobservable input, which results in a Level 3 classification. The Company includes the expected net future cash flows related to the associated servicing of the loan in the fair value measurement of a derivative loan commitment. The estimated value ascribed to the expected net future servicing cash flows is also considered a significant unobservable input contributing to the Level 3 classification of commitments to originate real estate loans for sale.

Interest rate swap agreements used for interest rate risk management

The Company utilizes interest rate swap agreements as part of the management of interest rate risk to modify the repricing characteristics of certain portions of its portfolios of earning assets and interest-bearing liabilities. The Company generally determines the fair value of its interest rate swap agreements using externally developed pricing models based on market observable inputs and therefore classifies such valuations as Level 2. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities.

The following tables present assets and liabilities at September 30, 2009 and December 31, 2008 measured at estimated fair value on a recurring basis:


	Fair value
	measurements at
	September 30,
	2009		Level 1		Level 2		Level 3
	(in thousands)
Trading account assets	$	497,064		46,633		450,431		—

Investment securities available for sale:
U.S. Treasury and federal agencies		114,783		—		114,783		—
Obligations of states and political subdivisions		68,452		—		56,117		12,335
Mortgage-backed securities:
Government issued or guaranteed		3,622,992		—		3,622,992		—
Privately issued residential		2,184,237		—		—		2,184,237
Privately issued commercial		23,541		—		—		23,541
Collateralized debt obligations		131,337		—		—		131,337
Other debt securities		241,166		—		240,781		385
Equity securities		136,348		117,131		16,899		2,318

		6,522,856		117,131		4,051,572		2,354,153


Real estate loans held for sale		580,810		—		580,810		—
Other assets (a)		97,656		—		83,698		13,958

Total assets	$	7,698,386		163,764		5,166,511		2,368,111


Trading account liabilities	$	384,525		12,097		372,428		—
Other liabilities (a)		13,117		—		13,079		38

Total liabilities	$	397,642		12,097		385,507		38


	Fair value
	measurements at
	December 31,
	2008		Level 1		Level 2		Level 3
	(in thousands)

Trading account assets	$	617,821		46,142		571,679		—

Investment securities available for sale:
U.S. Treasury and federal agencies		296,713		—		291,181		5,532
Obligations of states and political subdivisions		71,763		—		71,725		38
Mortgage-backed securities:
Government issued or guaranteed		3,612,780		—		3,528,236		84,544
Privately issued residential		2,326,554		—		—		2,326,554
Privately issued commercial		41,046		—		—		41,046
Collateralized debt obligations		2,496		—		—		2,496
Other debt securities		168,102		—		168,102		—
Equity securities		330,739		297,231		31,206		2,302

		6,850,193		297,231		4,090,450		2,462,512

Real estate loans held for sale		507,971		—		507,971		—
Other assets (a)		164,433		—		153,179		11,254

Total assets	$	8,140,418		343,373		5,323,279		2,473,766


Trading account liabilities	$	521,079		14,193		506,886		—
Other liabilities (a)		25,468		—		22,480		2,988

Total liabilities	$	546,547		14,193		529,366		2,988


(a)		Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2009 were as follows:


																Changes in
																unrealized
																gains (losses)
																included in
			Total gains (losses)													earnings
			realized/unrealized													related to
						Included in		Purchases,			Transfer					assets still
	Balance-					other		sales,			in and/or			Balance-		held at
	June 30,		Included			comprehensive		issuances &			out of			September 30,		September 30,
	2009		in earnings			income		settlements			Level 3			2009		2009
	(in thousands)
Investment securities available for sale:
Obligations of states and political subdivisions	$	12,203		—			132		—			—			12,335		—
Privately issued residential mortgage-backed securities		2,241,758		(44,278	)(a)		161,308		(174,551	)		—			2,184,237		(44,278	)(a)
Privately issued commercial mortgage-backed securities		23,018		—			523		—			—			23,541		—
Collateralized debt obligations		112,372		(2,502	)(a)		19,205		2,262			—			131,337		(2,502	)(a)
Other debt securities		765		—			70		—			(450	)		385		—
Equity securities		2,329		—			1		(12	)		—			2,318		—

		2,392,445		(46,780	)		181,239		(172,301	)		(450	)		2,354,153		(46,780	)
Other assets and other liabilities		9,676		16,195	(b)		—		—			(11,951	)		13,920		13,148	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2008 were as follows:


																		Changes in
																		unrealized
																		gains (losses)
																		included in
			Total gains (losses)															earnings
			realized/unrealized															related to
						Included in			Purchases,			Transfer						assets still
	Balance-					other			sales,			in and/or			Balance-			held at
	June 30,		Included			comprehensive			issuances &			out of			September 30,			September 30,
	2008		in earnings			income			settlements			Level 3			2008			2008
	(in thousands)
Investment securities available for sale:
U.S. Treasury and federal agencies	$	5,367		—			61			(123	)		—			5,305			—
Obligations of states and political subdivisions		47		—			—			—			—			47			—
Government issued or guaranteed mortgage-backed securities		89,071		—			(745	)		(2,704	)		—			85,622			—
Privately issued residential and commercial mortgage-backed securities		896,018		—			(24,110	)		(25,306	)		1,941,572			2,788,174			—
Collateralized debt obligations		14,482		—			(9,383	)		—			26			5,125			—
Equity securities		2,329		—			(5	)		(24	)		—			2,300			—

		1,007,314		—			(34,182	)		(28,157	)		1,941,598			2,886,573			—
Other assets and other liabilities		4,119		1,214	(b)		—			—			(7,047	)		(1,714	)		(1,939	)(b)


(a)		Reported as an other-than-temporary impairment loss in the consolidated statement of income or as gain (loss) on bank investment securities.

(b)		Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2009 were as follows:


																	Changes in
																	unrealized
																	gains (losses)
																	included in
			Total gains (losses)														earnings
			realized/unrealized														related to
						Included in			Purchases,			Transfer					assets still
	Balance-					other			sales,			in and/or			Balance-		held at
	December 31,		Included			comprehensive			issuances &			out of			September 30,		September 30,
	2008		in earnings			income			settlements			Level 3			2009		2009
	(in thousands)
Investment securities available for sale:
U.S. Treasury and federal agencies	$	5,532		—			—			—			(5,532	)		—		—
Obligations of states and political subdivisions		38		—			154			—			12,143			12,335		—
Government issued or guaranteed mortgage-backed securities		84,544		—			—			—			(84,544	)		—		—
Privately issued residential mortgage-backed securities		2,326,554		(98,746	)(a)		376,435			(420,006	)		—			2,184,237		(98,746	)(a)
Privately issued commercial mortgage-backed securities		41,046		—			(8,478	)		(9,027	)		—			23,541		—
Collateralized debt obligations		2,496		(4,055	)(a)		32,917			99,979			—			131,337		(4,055	)(a)
Other debt securities		—		—			110			725			(450	)		385		—
Equity securities		2,302		—			2			14			—			2,318		—

		2,462,512		(102,801	)		401,140			(328,315	)		(78,383	)		2,354,153		(102,801	)
Other assets and other liabilities		8,266		35,685	(b)		—			—			(30,031	)		13,920		16,444	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2008 were as follows:


																		Changes in
																		unrealized
																		gains
																		(losses)
																		included in
			Total gains (losses)															earnings
			realized/unrealized															related to
						Included in			Purchases,			Transfer						assets still
	Balance-					other			sales,			in and/or			Balance-			held at
	January 1,		Included			comprehensive			issuances &			out of			September 30,			September 30,
	2008		in earnings			income			settlements			Level 3			2008			2008
	(in thousands)
Investment securities available for sale:
U.S. Treasury and federal agencies	$	5,696		—			41			(432	)		—			5,305			—
Obligations of states and political subdivisions		50		—			(3	)		—			—			47			—
Government issued or guaranteed mortgage-backed securities		118,992		—			61			(4,495	)		(28,936	)		85,622			—
Privately issued residential and commercial mortgage-backed securities		1,159,644		—			(101,748	)		(126,075	)		1,856,353			2,788,174			—
Collateralized debt obligations		27,115		—			(22,016	)		—			26			5,125			—
Equity securities		2,324		—			(9	)		(15	)		—			2,300			—

		1,313,821		—			(123,674	)		(131,017	)		1,827,443			2,886,573			—
Other assets and other liabilities		2,654		16,176	(b)		—			—			(20,544	)		(1,714	)		(1,714	)(b)


(a)		Reported as an other-than-temporary impairment loss in the consolidated statement of income or as gain (loss) on bank investment securities.

(b)		Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

The Company is required, on a nonrecurring basis, to adjust the carrying value of certain assets or provide valuation allowances related to certain assets using fair value measurements.

Loans

Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2, unless significant adjustments have been made to the valuation that are not readily observable by market participants. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Loans subject to nonrecurring fair value measurement were $828 million at September 30, 2009, ($301 million and $527 million of which were classified as Level 2 and Level 3, respectively) and $328 million at September 30, 2008 ($205 million and $123 million of which were classified as Level 2 and Level 3, respectively). Changes in fair value recognized for partial charge-offs of loans and loan impairment reserves on loans held by the Company on September 30, 2009 were decreases of $136 million and $292 million for the three and nine months ended September 30, 2009, respectively, and on loans held by the Company on September 30, 2008 were decreases of $76 million and $131 million for the three and nine months ended September 30, 2008, respectively.

Capitalized servicing rights

Capitalized servicing rights are initially measured at fair value in the Company’s consolidated balance sheet. The Company utilizes the amortization method to subsequently measure its capitalized servicing assets. In accordance with GAAP, the Company must record impairment charges, on a nonrecurring basis, when the carrying value of certain strata exceed their estimated fair value. To estimate the fair value of servicing rights, the Company considers market prices for similar assets, if available, and the present value of expected future cash flows associated with the servicing rights calculated using assumptions that market participants would use in estimating future servicing income and expense. Such assumptions include estimates of the cost of servicing loans, loan default rates, an appropriate discount rate, and prepayment speeds. For purposes of evaluating and measuring impairment of capitalized servicing rights, the Company stratifies such assets based on the predominant risk characteristics of the underlying financial instruments that are expected to have the most impact on projected prepayments, cost of servicing and other factors affecting future cash flows associated with the servicing rights. Such factors may include financial asset or loan type, note rate and term. The amount of impairment recognized is the amount by which the carrying value of the capitalized servicing rights for a stratum exceed estimated fair value. Impairment is recognized through a valuation allowance. The determination of fair value of capitalized servicing rights is considered a Level 3 valuation. At September 30, 2009, $28 million of capitalized servicing rights had a carrying value equal to their fair value. Changes in the fair value-based valuation allowance for capitalized servicing rights recognized for the nine months ended September 30, 2009 reflected increases in fair value of $18 million. There were no similar changes during the three months ended September 30, 2009. At September 30, 2008, $20 million of capitalized servicing rights had a carrying value equal to their fair value. Changes in the fair value-based valuation allowance for capitalized servicing rights recognized for the three months ended September 30, 2008 reflected decreases in fair value of $1 million and for the nine months ended September 30, 2008 reflected increases in fair value of $3 million.

Assets taken in foreclosure of defaulted loans

Assets taken in foreclosure of defaulted loans are primarily comprised of commercial and residential real property and are generally measured at the lower of cost or fair value less costs to sell. The fair value of the real property is generally determined using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace, and the related nonrecurring fair value measurement adjustments have generally been classified as Level 2. Assets taken in foreclosure of defaulted loans subject to nonrecurring fair value measurement were $38 million at September 30, 2009. Changes in fair value recognized for those foreclosed assets held by the Company at September 30, 2009 were $4 million and $25 million for the three and nine months ended September 30, 2009, respectively.

Disclosures of fair value of financial instruments

With the exception of marketable securities, certain off-balance sheet financial instruments and one-to-four family residential mortgage loans originated for sale, the Company’s financial instruments are not readily marketable and market prices do not exist. The Company, in attempting to comply with the provisions of GAAP that require disclosures of fair value of financial instruments, has not attempted to market its financial instruments to potential buyers, if any exist. Since negotiated prices in illiquid markets depend greatly upon the then present motivations of the buyer and seller, it is reasonable to assume that actual sales prices could vary widely from any estimate of fair value made without the benefit of negotiations. Additionally, changes in market interest rates can dramatically impact the value of financial instruments in a short period of time. Additional information about the assumptions and calculations utilized is presented below.

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:


	September 30, 2009						December 31, 2008
	Carrying			Calculated			Carrying			Calculated
	Amount			Estimate			Amount			Estimate
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,373,714		$	1,373,714		$	1,568,151		$	1,568,151
Interest-bearing deposits at banks		54,443			54,443			10,284			10,284
Trading account assets		497,064			497,064			617,821			617,821
Agreements to resell securities		—			—			90,000			90,000
Investment securities		7,634,262			7,466,555			7,919,207			7,828,121
Loans and leases:
Commercial loans and leases		13,517,538			13,075,496			14,261,882			14,137,805
Commercial real estate loans		21,007,376			20,428,915			18,837,665			18,210,209
Residential real estate loans		5,427,260			5,001,990			4,904,424			4,249,137
Consumer loans		12,251,598			11,746,905			10,996,492			10,849,635
Allowance for credit losses		(867,874	)		—			(787,904	)		—

Loans and leases, net		51,335,898			50,253,306			48,212,559			47,446,786
Accrued interest receivable		235,225			235,225			222,073			222,073

Financial liabilities:
Noninterest-bearing deposits	$	(12,730,083	)	$	(12,730,083	)	$	(8,856,114	)	$	(8,856,114	)
Savings deposits and NOW accounts		(24,048,178	)		(24,048,178	)		(20,630,226	)		(20,630,226	)
Time deposits		(8,765,520	)		(8,838,198	)		(9,046,937	)		(9,108,821	)
Deposits at foreign office		(1,318,070	)		(1,318,070	)		(4,047,986	)		(4,047,986	)
Short-term borrowings		(2,927,268	)		(2,927,268	)		(3,009,735	)		(3,009,735	)
Long-term borrowings		(10,354,392	)		(9,748,011	)		(12,075,149	)		(11,104,337	)
Accrued interest payable		(149,137	)		(149,137	)		(142,456	)		(142,456	)
Trading account liabilities		(384,525	)		(384,525	)		(521,079	)		(521,079	)

Other financial instruments:
Commitments to originate real estate loans for sale	$	13,920		$	13,920		$	8,144		$	8,144
Commitments to sell real estate loans		(12,538	)		(12,538	)		(15,477	)		(15,477	)
Other credit-related commitments		(51,549	)		(51,549	)		(51,361	)		(51,361	)
Interest rate swap agreements used for interest rate risk management		83,069			83,069			146,111			146,111

The following assumptions and methods or calculations were used in determining the estimated fair value of financial instruments not measured at fair value in the consolidated balance sheet.

Cash and cash equivalents, interest-bearing deposits at banks, short-term borrowings, accrued interest receivable and accrued interest payable

Due to the nature of cash and cash equivalents and the near maturity of interest-bearing deposits at banks, short-term borrowings, accrued interest receivable and accrued interest payable, the Company estimated that the carrying amount of such instruments approximated estimated fair value.

Agreements to resell securities

The amounts assigned to agreements to resell securities were based on discounted calculations of projected cash flows.

Investment securities

Estimated fair values of investments in readily marketable securities were generally based on quoted market prices. Investment securities that were not readily marketable were assigned amounts based on estimates provided by outside parties or modeling techniques that relied upon discounted calculations of projected cash flows or, in the case of other investment securities, which include capital stock of the Federal Reserve Bank of New York and the Federal Home Loan Bank of New York, at an amount equal to the carrying amount.

Loans and leases

In general, discount rates used to calculate values for loan products were based on the Company’s pricing at the respective period end and included appropriate adjustments for expected credit losses. A higher discount rate was assumed with respect to estimated cash flows associated with nonaccrual loans. Projected loan cash flows were adjusted for estimated credit losses. However, such estimates made by the Company may not be indicative of assumptions and adjustments that a purchaser of the Company’s loans and leases would seek.

Deposits

Pursuant to GAAP, the estimated fair value ascribed to noninterest-bearing deposits, savings deposits and NOW accounts must be established at carrying value because of the customers’ ability to withdraw funds immediately. Time deposit accounts are required to be revalued based upon prevailing market interest rates for similar maturity instruments. As a result, amounts assigned to time deposits were based on discounted cash flow calculations using prevailing market interest rates based on the Company’s pricing at the respective date for deposits with comparable remaining terms to maturity.

The Company believes that deposit accounts have a value greater than that prescribed by GAAP. The Company feels, however, that the value associated with these deposits is greatly influenced by characteristics of the buyer, such as the ability to reduce the costs of servicing the deposits and deposit attrition which often occurs following an acquisition.

Long-term borrowings

The amounts assigned to long-term borrowings were based on quoted market prices, when available, or were based on discounted cash flow calculations using prevailing market interest rates for borrowings of similar terms and credit risk.

Commitments to originate real estate loans for sale and commitments to sell real estate loans

Interest rate swap agreements used for interest rate risk management

The estimated fair value of interest rate swap agreements used for interest rate risk management represents the amount the Company would have expected to receive or pay to terminate such agreements.

Other commitments and contingencies

As described in note 11, in the normal course of business, various commitments and contingent liabilities are outstanding, such as loan commitments, credit guarantees and letters of credit. The Company’s pricing of such financial instruments is based largely on credit quality and relationship, probability of funding and other requirements. Loan commitments often have fixed expiration dates and contain termination and other clauses which provide for relief from funding in the event of significant deterioration in the credit quality of the customer. The rates and terms of the Company’s loan commitments, credit guarantees and letters of credit are competitive with other financial institutions operating in markets served by the Company. The Company believes that the carrying amounts, which are included in other liabilities, are reasonable estimates of the fair value of these financial instruments.

The Company does not believe that the estimated information presented herein is representative of the earnings power or value of the Company. The preceding analysis, which is inherently limited in depicting fair value, also does not consider any value associated with existing customer relationships nor the ability of the Company to create value through loan origination, deposit gathering or fee generating activities.

Many of the estimates presented herein are based upon the use of highly subjective information and assumptions and, accordingly, the results may not be precise. Management believes that fair value estimates may not be comparable between financial institutions due to the wide range of permitted valuation techniques and numerous estimates which must be made. Furthermore, because the disclosed fair value amounts were estimated as of the balance sheet date, the amounts actually realized or paid upon maturity or settlement of the various financial instruments could be significantly different.

- Definition

This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Commitments and contingencies

9 Months Ended

Sep. 30, 2009

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 Company’s significant commitments. Certain of these commitments are not included in the Company’s 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 management’s assessment of the customer’s 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 Company’s involvement in the Federal National Mortgage Association Delegated Underwriting and Servicing program. The Company’s maximum credit risk for recourse associated with loans sold under this program totaled approximately $1.3 billion and $1.2 billion at September 30, 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.

The Company utilizes commitments to sell real estate loans to hedge exposure to changes in the fair value of real estate loans held for sale. Such commitments are considered derivatives and along with commitments to originate real estate loans to be held for sale are generally recorded in the consolidated balance sheet at estimated fair market value.

The Company has an agreement with the Baltimore Ravens of the National Football League whereby the Company obtained the naming rights to a football stadium in Baltimore, Maryland. Under the agreement, the Company is obligated to pay $5 million per year through 2013 and $6 million per year from 2014 through 2017.

The Company also has commitments under long-term operating leases.

The Company reinsures credit life and accident and health insurance purchased by consumer loan customers. The Company also enters into reinsurance contracts with third party insurance companies who insure against the risk of a mortgage borrower’s payment default in connection with certain mortgage loans originated by the Company. When providing reinsurance coverage, the Company receives a premium in exchange for accepting a portion of the insurer’s risk of loss. The outstanding loan principal balances reinsured by the Company were approximately $99 million at September 30, 2009. Assets of subsidiaries providing reinsurance that are available to satisfy claims totaled approximately $70 million at September 30, 2009. The amounts noted above are not necessarily indicative of losses which may ultimately be incurred. Such losses are expected to be substantially less because most loans are repaid by borrowers in accordance with the original loan terms.

M&T and its subsidiaries are subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. Management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending against M&T or its subsidiaries will be material to the Company’s consolidated financial position, but at the present time is not in a position to determine whether such litigation will have a material adverse effect on the Company’s consolidated results of operations in any future reporting period.

Segment information

9 Months Ended

Sep. 30, 2009

Segment information [Abstract]

Segment information

12. Segment information

Reportable segments have been determined based upon the Company’s 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 Company’s segments was compiled utilizing the accounting policies described in note 22 to the Company’s consolidated financial statements as of and for the year ended December 31, 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 Company’s 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 Company’s 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 Company’s 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			—			94,518			280,817			5			91,889

Commercial Banking		535,092			—			168,315			468,579			344			180,223

Commercial Real Estate		297,335			53			108,669			260,176			556			121,322

Discretionary Portfolio		29,077			(9,671	)		(18,864	)		(35,489	)		(11,115	)		(57,101	)

Residential Mortgage Banking		234,363			38,041			(4,168	)		187,335			34,526			(23,162	)

Retail Banking		933,726			8,066			180,590			882,652			9,458			196,733

All Other		(55,859	)		(36,489	)		(285,987	)		107,213			(33,774	)		(56,258	)


Total		$2,279,245			—			243,073			2,151,283			—			453,646


	Average total assets
	Nine months ended				Year ended
	September 30				December 31
	2009		2008		2008
			(in millions)
Business Banking	$	4,821		4,431		4,452

Commercial Banking		15,451		14,845		14,981

Commercial Real Estate		12,563		11,296		11,394

Discretionary Portfolio		13,642		14,464		14,179

Residential Mortgage Banking		2,619		2,692		2,660

Retail Banking		11,862		11,397		11,356

All Other		6,026		6,073		6,110


Total	$	66,984		65,198		65,132


(a)		Total revenues are comprised of net interest income and other income. Net interest income is the difference between taxable-equivalent interest earned on assets and interest paid on liabilities owed by a segment and a funding charge (credit) based on the Company’s internal funds transfer and allocation methodology. Segments are charged a cost to fund any assets (e.g. loans) and are paid a funding credit for any funds provided (e.g. deposits). The taxable-equivalent adjustment aggregated $5,795,000 and $5,260,000 for the three-month periods ended September 30, 2009 and 2008, respectively, and $15,942,000 and $16,894,000 for the nine-month periods ended September 30, 2009 and 2008, respectively, and is eliminated in “All Other” total revenues. Intersegment revenues are included in total revenues of the reportable segments. The elimination of intersegment revenues is included in the determination of “All Other” total revenues.

Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.	9 Months Ended
	Sep. 30, 2009
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 M&T invested $300 million 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. M&T 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 BLG’s majority investor. In addition to their common investment in BLG, the Company and Bayview Financial conduct other business activities with each other. The Company has purchased loan servicing rights for small balance commercial mortgage loans from BLG and Bayview Financial having outstanding principal balances of $5.7 billion and $5.9 billion at September 30, 2009 and December 31, 2008, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $44 million at September 30, 2009 and $58 million at December 31, 2008. In addition, capitalized servicing rights at September 30, 2009 and December 31, 2008 also included $20 million and $28 million, respectively, for servicing rights that were purchased from Bayview Financial related to residential mortgage loans with outstanding principal balances of $4.1 billion at September 30, 2009 and $4.6 billion at December 31, 2008. Revenues from servicing residential and small balance commercial mortgage loans purchased from BLG and Bayview Financial were $12 million and $13 million during the three-month periods ended September 30, 2009 and 2008, respectively, and $38 million and $40 million for the nine months ended September 30, 2009 and 2008, respectively. M&T Bank provided $41 million and $71 million of credit facilities to Bayview Financial at September 30, 2009 and December 31, 2008, respectively, of which $31 million and $57 million were outstanding at September 30, 2009 and December 31, 2008, respectively. At September 30, 2009 and December 31, 2008, the Company held $24 million and $32 million, respectively, of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. In addition, the Company held $374 million and $412 million of similar investment securities in its held-to-maturity portfolio at September 30, 2009 and December 31, 2008, respectively.

Consolidated Statement of Changes in Stockholders Equity (Parenthetical) (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2009	Sep. 30, 2008
Common stock per share dividend amount	$ 2.1	$ 2.1
Retained earnings
Common stock per share dividend amount	$ 2.1	$ 2.1