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Document and Entity Information - USD ($)	3 Months Ended
Document and Entity Information - USD ($)	Mar. 31, 2010	Apr. 23, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	M&T BANK CORP
Entity Central Index Key	0000036270
Document Type	10-Q
Document Period End Date	Mar. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3,984,009,945
Entity Common Stock, Shares Outstanding		118,865,763

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

Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2010	Dec. 31, 2009
Assets
Pledged securities that can be sold or repledged	$ 1,787,179,000	$ 1,797,701,000
Investment securities, available for sale, cost	6,261,058,000	6,997,009,000
Investment securities, held to maturity, fair value	1,373,672,000	416,483,000
Investment securities, other fair value	497,575,000	508,624,000
Stockholders' equity
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	778,000	778,000
Preferred stock, shares outstanding	778,000	778,000
Preferred stock, liquidation preference per share	$ 1,000	$ 1,000
Commmon stock, par value	$ 0.5	$ 0.5
Commmon stock, shares authorized	250,000,000	250,000,000
Commmon stock, shares issued	120,396,611	120,396,611
Common stock, issuable shares	70,274	75,170
Treasury stock - common, shares	1,643,972	2,173,916

Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2010	Mar. 31, 2009
Interest income
Loans and leases, including fees	$ 588,127	$ 554,329
Deposits at banks	6	8
Federal funds sold	11	19
Agreements to resell securities	2	39
Trading account	83	121
Investment securities
Fully taxable	85,647	98,467
Exempt from federal taxes	2,510	1,529
Total interest income	676,386	654,512
Interest expense
NOW accounts	200	327
Savings deposits	20,449	41,922
Time deposits	29,446	60,329
Deposits at foreign office	325	981
Short-term borrowings	887	2,348
Long-term borrowings	68,745	100,798
Total interest expense	120,052	206,705
Net interest income	556,334	447,807
Provision for credit losses	105,000	158,000
Net interest income after provision for credit losses	451,334	289,807
Other income
Mortgage banking revenues	41,476	56,233
Service charges on deposit accounts	120,295	101,029
Trust income	30,928	34,880
Brokerage services income	13,106	15,393
Trading account and foreign exchange gains	4,699	1,435
Gain on bank investment securities	459	575
Total other-than-temporary impairment ("OTTI") losses	(29,487)	(62,808)
Portion of OTTI losses recognized in other comprehensive income (before taxes)	2,685	30,609
Net OTTI losses recognized in earnings	(26,802)	(32,199)
Equity in earnings of Bayview Lending Group LLC	(5,714)	(4,144)
Other revenues from operations	79,259	59,139
Total other income	257,706	232,341
Other expense
Salaries and employee benefits	264,046	249,392
Equipment and net occupancy	55,401	48,172
Printing, postage and supplies	9,043	9,095
Amortization of core deposit and other intangible assets	16,475	15,370
FDIC assessments	21,348	5,856
Other costs of operations	123,049	110,461
Total other expense	489,362	438,346
Income before taxes	219,678	83,802
Income taxes	68,723	19,581
Net income	150,955	64,221
Net income available to common equity	$ 138,341	$ 55,322
Net income per common share
Basic	$ 1.16	$ 0.49
Diluted	1.15	0.49
Cash dividends per common share	$ 0.7	$ 0.70
Average common shares outstanding
Basic	117,765	110,439
Diluted	118,256	110,439

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

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

Consolidated Statement of Changes in Stockholders Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2010	Mar. 31, 2009
Retained earnings
Statement [Line Items]
Common stock per share dividend amount	$ 0.7	$ 0.7

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

Significant accounting policies	3 Months Ended
Significant accounting policies	Mar. 31, 2010
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 2009 Annual Report, except as described below. In the opinion of management, all adjustments necessary for a fair presentation have been made and were all of a normal recurring nature.

Acquisitions

3 Months Ended

Mar. 31, 2010

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 third quarter of 2009. There was no goodwill or other intangible assets recorded in connection with this transaction. The Bradford acquisition transaction did not have a material impact on the Company’s consolidated statement of position or 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 first quarter of 2010 was approximately $39 million. The outstanding principal balance and the carrying amount of these loans that is included in the consolidated balance sheet at March 31, 2010 is as follows:


	(in thousands)
Outstanding principal balance	$	3,729,361
Carrying amount		3,508,231

Receivables (including loans and investment securities) obtained in the acquisition of Provident for which there was specific evidence of credit deterioration as of the acquisition date 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.

The following table presents certain pro forma information for the quarter ended March 31, 2009 as if Provident had been acquired on January 1, 2009. 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 January 1, 2009. In particular, no adjustments have been made to eliminate the amount of Provident’s provision for credit losses of $36 million in the quarter ended March 31, 2009 or the impact of other-than-temporary impairment losses recognized by Provident of $87 million in the quarter ended March 31, 2009 that would not have been necessary had the acquired loans and investment securities been recorded at fair value as of the beginning of 2009. Furthermore, expenses related to systems conversions and other costs of integration are only included to the extent they were incurred during the first quarter of 2009.

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.


	Pro forma
	Three months ended
	March 31, 2009
	(in thousands)
Total revenues	$	886,968
Net income		(8,498	)

Merger-related expenses associated with the then pending acquisition of Provident for systems conversions and other costs of integrating and conforming acquired operations with and into the Company were $2 million during the three-month period ended March 31, 2009. There were no similar expenses in 2010’s initial quarter.

Investment securities

3 Months Ended

Mar. 31, 2010

Investment securities [Abstract]

Investment securities

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:


			Gross		Gross
	Amortized		unrealized		unrealized		Estimated
	cost		gains		losses		fair value
	(in thousands)
March 31, 2010
Investment securities available for sale:
U.S. Treasury and federal agencies	$	98,431		1,713		39	$	100,105
Obligations of states and political subdivisions		70,888		922		90		71,720
Mortgage-backed securities:
Government issued or guaranteed		3,545,040		145,435		1,565		3,688,910
Privately issued residential		1,958,635		11,111		305,405		1,664,341
Privately issued commercial		31,356		—		6,231		25,125
Collateralized debt obligations		102,282		32,241		8,768		125,755
Other debt securities		310,996		22,965		48,270		285,691
Equity securities		143,430		6,685		14,496		135,619

		6,261,058		221,072		384,864		6,097,266

Investment securities held to maturity:
Obligations of states and political subdivisions		205,054		1,448		1,457		205,045
Mortgage-backed securities:
Government issued or guaranteed		951,007		2,439		1,121		952,325
Privately issued mortgage-backed securities		341,618		—		137,442		204,176
Other debt securities		12,126		—		—		12,126

		1,509,805		3,887		140,020		1,373,672

Other securities		497,575		—		—		497,575

Total	$	8,268,438		224,959		524,884	$	7,968,513


December 31, 2009
Investment securities available for sale:
U.S. Treasury and federal agencies	$	102,755		1,988		57	$	104,686
Obligations of states and political subdivisions		61,468		1,583		128		62,923
Mortgage-backed securities:
Government issued or guaranteed		3,777,642		131,407		6,767		3,902,282
Privately issued residential		2,438,353		9,630		383,079		2,064,904
Privately issued commercial		33,133		—		7,967		25,166
Collateralized debt obligations		103,159		23,389		11,202		115,346
Other debt securities		309,514		16,851		58,164		268,201
Equity securities		170,985		5,590		15,705		160,870

		6,997,009		190,438		483,069		6,704,378

Investment securities held to maturity:
Obligations of states and political subdivisions		203,825		1,419		1,550		203,694
Privately issued mortgage-backed securities		352,195		—		150,993		201,202
Other debt securities		11,587		—		—		11,587

		567,607		1,419		152,543		416,483

Other securities		508,624		—		—		508,624

Total	$	8,073,240		191,857		635,612	$	7,629,485

Gross realized gains on investment securities were $1.2 million and $854 thousand for the quarters ended March 31, 2010 and 2009, respectively. Gross realized losses on investment securities were $777 thousand and $279 thousand for the quarters ended March 31, 2010 and 2009, respectively. The Company recognized $27 million (pre-tax) of other-than-temporary impairment losses during the quarter ended March 31, 2010 related to twenty privately issued residential mortgage-backed securities with an amortized cost basis (before impairment charge) of $423 million. The impairment charges were recognized in light of deterioration of housing values in the residential real estate market and continued high levels of delinquencies and charge-offs of underlying mortgage loans collateralizing these securities. The other-than-temporary impairment losses recognized in the consolidated statement of income were net of $3 million (pre-tax) of unrealized losses classified in accumulated other comprehensive income for the same securities. The $27 million loss represents 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. During the first quarter of 2009, the Company recognized $32 million (pre-tax) of other-than-temporary impairment losses related to seven privately issued residential mortgage-backed securities with a cost basis of $91 million. The following table displays changes in credit losses for debt securities recognized in earnings for the quarters ended March 31, 2010 and March 31, 2009.


	Three months ended March 31,
	2010			2009
	(in thousands)
Beginning balance	$	284,513			155,967
Additions for credit losses not previously recognized		26,802			32,199
Reductions for increases in cash flows		(169	)		(548	)
Reductions for realized losses		(3,129	)		—

Ending balance	$	308,017			187,618

At March 31, 2010, 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	$	73,255		73,970
Due after one year through five years		58,498		60,176
Due after five years through ten years		33,697		35,292
Due after ten years		417,147		413,833

		582,597		583,271
Mortgage-backed securities available for sale		5,535,031		5,378,376

	$	6,117,628		5,961,647


Debt securities held to maturity:
Due in one year or less	$	38,355		38,581
Due after one year through five years		8,394		8,752
Due after five years through ten years		123,439		123,181
Due after ten years		46,992		46,657

		217,180		217,171

Mortgage-backed securities held to maturity		1,292,625		1,156,501

	$	1,509,805		1,373,672

A summary of investment securities that as of March 31, 2010 and December 31, 2009 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)
March 31, 2010
U.S. Treasury and federal agencies	$	3,881		(36	)		573		(3	)
Obligations of states and political subdivisions		134,590		(1,447	)		3,977		(100	)
Mortgage-backed securities:
Government issued or guaranteed		829,778		(2,653	)		5,620		(33	)
Privately issued residential		75,195		(1,900	)		1,500,335		(440,947	)
Privately issued commercial		—		—			25,125		(6,231	)

Collateralized debt obligations		12,199		(8,419	)		3,669		(349	)
Other debt securities		1,763		(2	)		102,428		(48,268	)
Equity securities		4,900		(1,561	)		7,037		(12,935	)

Total	$	1,062,306		(16,018	)		1,648,764		(508,866	)


	Less than 12 months					12 months or more
			Unrealized					Unrealized
	Fair value		losses			Fair value		losses
	(in thousands)
December 31, 2009
U.S. Treasury and federal agencies	$	6,265		(53	)		572		(4	)
Obligations of states and political subdivisions		145,572		(1,575	)		4,204		(103	)
Mortgage-backed securities:
Government issued or guaranteed		685,319		(6,460	)		19,379		(307	)
Privately issued residential		98,312		(2,871	)		1,705,222		(531,201	)
Privately issued commercial		—		—			25,166		(7,967	)
Collateralized debt obligations		13,046		(10,218	)		3,598		(984	)
Other debt securities		5,786		(174	)		138,705		(57,990	)
Equity securities		7,449		(1,728	)		23,159		(13,977	)

Total	$	961,749		(23,079	)		1,920,005		(612,533	)

The Company owned 748 individual investment securities with aggregate gross unrealized losses of $525 million at March 31, 2010. Approximately $443 million of the unrealized losses pertain to privately issued residential mortgage-backed securities with a cost basis of $2.0 billion. The Company also had $56 million of unrealized losses on trust preferred securities issued by financial institutions and securities backed by trust preferred securities issued by financial institutions having a cost basis of $171 million. Based on a review of each of the remaining securities in the investment securities portfolio at March 31, 2010, 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 March 31, 2010, 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 March 31, 2010, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $498 million of cost method investment securities.

Borrowings	3 Months Ended
Borrowings	Mar. 31, 2010
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 March 31, 2010 which are held by various trusts that were issued in connection with the issuance by those trusts of preferred capital securities (“Capital Securities”) and common securities (“Common Securities”). The proceeds from the issuances of the Capital Securities and the Common Securities were used by the trusts to purchase the Junior Subordinated Debentures. The Common Securities of each of those trusts are wholly owned by 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. 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. Including the unamortized portions of purchase accounting adjustments to reflect estimated fair value at the acquisition dates of the Common Securities of various trusts the Junior Subordinated Debentures associated with Capital Securities had financial statement carrying values of $1.2 billion at each of March 31, 2010 and December 31, 2009.

Stockholders equity

3 Months Ended

Mar. 31, 2010

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

March 31, 2010

December 31, 2009

(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

574,057

572,580

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

132,212

131,155


(a)		Shares were issued as part of the Troubled Asset Relief Program – Capital Purchase Program of the U.S. Department of Treasury (“U.S. Treasury”). Cash proceeds were allocated between the preferred stock and a ten-year warrant to purchase M&T common stock (Series A – 1,218,522 common shares at $73.86 per share, Series C – 407,542 common shares at $55.76 per share). Dividends, if declared, will accrue and be paid quarterly at a rate of 5% per year for the first five years following the original 2008 issuance dates and thereafter at a rate of 9% per year. The agreement with the U.S. Treasury contains limitations on certain actions of M&T, including the payment of quarterly cash dividends on M&T’s common stock in excess of $.70 per share, the repurchase of its common stock during the first three years of the agreement, and the amount and nature of compensation arrangements for certain of the Company’s officers.

(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.

Pension plans and other postretirement benefits

3 Months Ended

Mar. 31, 2010

Pension plans and other postretirement benefits [Abstract]

Pension plans and other postretirement benefits

6. Pension plans and other postretirement benefits

The Company provides defined benefit pension and other postretirement benefits (including health care and life insurance benefits) to qualified retired employees. Net periodic benefit cost for defined benefit plans consisted of the following:


							Other
	Pension						postretirement
	benefits						benefits
	Three months ended March 31,
	2010			2009			2010		2009
	(in thousands)
Service cost	$	4,875			4,875			100		150
Interest cost on projected benefit obligation		12,029			11,015			780		900
Expected return on plan assets		(12,788	)		(11,475	)		—		—
Amortization of prior service cost		(1,650	)		(1,650	)		25		75
Amortization of net actuarial loss		3,321			2,350			—		—

Net periodic benefit cost	$	5,787			5,115			905		1,125

Expense incurred in connection with the Company’s defined contribution pension and retirement savings plans totaled $11,690,000 and $10,774,000 for the three months ended March 31, 2010 and 2009, respectively.

Earnings per common share

3 Months Ended

Mar. 31, 2010

Earnings per common share [Abstract]

Earnings per common share

7. Earnings per common share

The computations of basic earnings per common share follow:


	Three months ended
	March 31,
	2010			2009
	(in thousands, except per share)
Income available to common stockholders:
Net income	$	150,955			64,221
Less: Preferred stock dividends (a)		(10,056	)		(7,500	)
Amortization of preferred stock discount (a)		(2,558	)		(1,399	)

Net income available to common equity		138,341			55,322
Less: Income attributable to unvested stock-based compensation awards		(1,913	)		(704	)


Net income available to common stockholders	$	136,428			54,618

Weighted-average shares outstanding:

Common shares outstanding (including common stock issuable) and unvested stock-based compensation awards		119,324			111,298
Less: Unvested stock-based compensation awards		(1,559	)		(859	)


Weighted-average shares outstanding		117,765			110,439

Basic earnings per common share	$	1.16			.49


(a)		Including impact of not as yet declared cumulative dividends.

The computations of diluted earnings per common share follow:


	Three months ended
	March 31,
	2010			2009
	(in thousands, except per share)

Net income available to common equity	$	138,341			55,322
Less: Income attributable to unvested stock-based compensation awards		(1,910	)		(704	)


Net income available to common stockholders		136,431			54,618

Adjusted weighted-average shares outstanding:

Common and unvested stock-based compensation awards		119,324			111,298

Less: Unvested stock-based compensation awards		(1,559	)		(859	)
Plus: Incremental shares from assumed conversion of stock-based compensation awards and convertible preferred stock		491			—


Adjusted weighted-average shares outstanding		118,256			110,439

Diluted earnings per common share	$	1.15			.49

GAAP defines unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) as participating securities that shall be included in the computation of earnings per common share pursuant to the two-class method. During the first quarters of 2010 and 2009, the Company issued stock-based compensation awards in the form of restricted stock and restricted stock units, which, in accordance with GAAP, are considered participating securities.

Stock-based compensation awards, warrants to purchase common stock of M&T and preferred stock convertible into shares of M&T common stock representing approximately 11.9 million and 15.0 million common shares during the three-month periods ended March 31, 2010 and 2009, respectively, were not included in the computations of diluted earnings per common share because the effect on those periods would have been antidilutive.

Comprehensive income

3 Months Ended

Mar. 31, 2010

Comprehensive income [Abstract]

Comprehensive income

8. Comprehensive income

The following table displays the components of other comprehensive income:


	Three months ended March 31, 2010
	Before-tax			Income
	amount			taxes			Net
	(in thousands)
Unrealized gains (losses) on investment securities:

Available for sale (“AFS”) investment securities with other-than-temporary impairment (“OTTI”):

Securities with OTTI charges during the period	$	(29,487	)		11,574			(17,913	)
Less: OTTI charges recognized in net income		(26,802	)		10,483			(16,319	)

Net unrealized losses on investment securities with OTTI		(2,685	)		1,091			(1,594	)


AFS investment securities – all other:

Unrealized holding gains during period		101,892			(39,882	)		62,010
Less: reclassification adjustment for gains realized in net income		(145	)		44			(101	)
Less: securities with OTTI charges during the period		(29,487	)		11,574			(17,913	)

		131,524			(51,500	)		80,024


Reclassification of unrealized holding losses to income during period on investment securities previously transferred from AFS to held to maturity (“HTM”)		2,347			(921	)		1,426


Net unrealized gains on investment securities		131,186			(51,330	)		79,856

Reclassification of gain on terminated cash flow hedge to income		(112	)		42			(70	)

Defined benefit plans liability adjustment		1,696			(666	)		1,030

	$	132,770			(51,954	)		80,816


	Three months ended March 31, 2009
	Before-tax			Income
	amount			taxes			Net
	(in thousands)
Unrealized gains (losses) on investment securities:

AFS investment securities with OTTI:

Securities with OTTI charges during the period	$	(62,808	)		24,566			(38,242	)
Less: OTTI charges recognized in net income		(32,199	)		12,590			(19,609	)

Net unrealized losses on investment securities with OTTI		(30,609	)		11,976			(18,633	)


AFS investment securities – all other:

Unrealized holding gains during period		147,229			(58,559	)		88,670
Less: reclassification adjustment for gains realized in net income		27			(10	)		17
Less: securities with OTTI charges during the period		(62,808	)		24,566			(38,242	)

		210,010			(83,115	)		126,895


Reclassification of unrealized holding losses to income during period on investment securities previously transferred from AFS to HTM		3,456			(879	)		2,577


Net unrealized gains on investment securities		182,857			(72,018	)		110,839

Reclassification of losses on terminated cash flow hedges to income		5,185			(2,024	)		3,161

Defined benefit plans liability adjustment		775			(303	)		472

	$	188,817			(74,345	)		114,472

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, 2010	$	(76,772	)		(142,853	)		674			(117,046	)		(335,997	)

Net gain (loss) during period		(1,594	)		81,450			(70	)		1,030			80,816


Balance – March 31, 2010	$	(78,366	)		(61,403	)		604			(116,016	)		(255,181	)


Balance — January 1, 2009	$	—			(556,668	)		(5,883	)		(174,330	)		(736,881	)

Net gain (loss) during period		(18,633	)		129,472			3,161			472			114,472


Balance – March 31, 2009	$	(18,633	)		(427,196	)		(2,722	)		(173,858	)		(622,409	)

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2010

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments

9. Derivative financial instruments

As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the 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 March 31, 2010.

The net effect of interest rate swap agreements was to increase net interest income by $11 million and $7 million for the three months ended March 31, 2010 and 2009, respectively. Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:


					Weighted-
	Notional		Average		average rate
	amount		maturity		Fixed			Variable
	(in thousands)		(in years)
March 31,2010
Fair value hedges:
Fixed rate time deposits (a)	$	25,000		3.5		5.30	%		0.36	%
Fixed rate long-term borrowings (a)		1,037,241		6.2		6.33	%		2.11	%

	$	1,062,241		6.2		6.30	%		2.07	%


December 31, 2009
Fair value hedges:
Fixed rate time deposits (a)	$	25,000		3.7		5.30	%		0.34	%
Fixed rate long-term borrowings (a)		1,037,241		6.5		6.33	%		2.12	%

	$	1,062,241		6.4		6.30	%		2.07	%


(a)		Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in fair value of certain commitments to originate real estate loans for sale.

Derivative financial instruments used for trading purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures. Interest rate contracts entered into for trading purposes had notional values of $12.8 billion and $13.9 billion at March 31, 2010 and December 31, 2009, respectively. The notional amounts of foreign currency and other option and futures contracts entered into for trading purposes aggregated $701 million and $608 million at March 31, 2010 and December 31, 2009, 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
	March 31,		December 31,		March 31,		December 31,
	2010		2009		2010		2009
	(in thousands)
Derivatives designated and qualifying as hedging instruments
Fair value hedges:
Interest rate swap agreements (a)	$	67,092		54,486	$	—		—
Commitments to sell real estate loans (a)		1,258		6,009		230		171

		68,350		60,495		230		171

Derivatives not designated and qualifying as hedging instruments
Mortgage-related commitments to originate real estate loans for sale (a)		8,494		4,428		323		4,508
Commitments to sell real estate loans (a)		2,338		13,293		1,469		1,360
Trading:
Interest rate contracts (b)		330,868		317,651		304,180		290,104
Foreign exchange and other option and futures contracts (b)		12,003		11,908		11,846		12,094

		353,703		347,280		317,818		308,066


Total derivatives	$	422,053		407,775	$	318,048		308,237


(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
	March 31, 2010						March 31, 2009
	Derivative			Hedged item			Derivative			Hedged item
	(in thousands)
Derivatives in fair value hedging relationships

Interest rate swap agreements:
Fixed rate time deposits (a)	$	(199	)		199		$	(452	)		449
Fixed rate long-term borrowings (a)		12,470			(11,981	)		(21,315	)		19,661


Total	$	12,271			(11,782	)	$	(21,767	)		20,110


Derivatives not designated as hedging instruments

Trading:
Interest rate contracts (b)	$	(614	)				$	(172	)
Foreign exchange and other option and futures contracts (b)		342						876


Total	$	(272	)				$	704


(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 that 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. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. As a result of these activities, net unrealized pre-tax gains related to hedged loans held for sale, commitments to originate loans for sale and commitments to sell loans were approximately $17 million and $20 million at March 31, 2010 and December 31, 2009, respectively. 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.

The aggregate fair value of derivative financial instruments in a net liability position at March 31, 2010 for which the Company was required to post collateral was $230 million. The fair value of collateral posted for such instruments was $221 million.

The Company’s credit exposure with respect to the estimated fair value as of March 31, 2010 of interest rate swap agreements used for managing interest rate risk has been substantially mitigated through master netting agreements with trading account interest rate contracts with the same counterparties as well as counterparty postings of $47 million of collateral with the Company.

Variable interest entities and asset securitizations	3 Months Ended
Variable interest entities and asset securitizations	Mar. 31, 2010
Variable interest entities and asset securitizations [Abstract]
Variable interest entities and asset securitizations	10. Variable interest entities and asset securitizations Effective January 1, 2010, the Financial Accounting Standards Board (“FASB”) amended accounting guidance relating to the consolidation of variable interest entities to eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity. The amended guidance instead requires a reporting entity to qualitatively assess the determination of the primary beneficiary of a variable interest entity based on whether the reporting entity has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and has the obligation to absorb losses or the right to receive benefits of the variable interest entity that could potentially be significant to the variable interest entity. The amended guidance requires ongoing reassessments of whether the reporting entity is the primary beneficiary of a variable interest entity. Also effective January 1, 2010, the FASB amended accounting guidance relating to accounting for transfers of financial assets to eliminate the exceptions for qualifying special purpose entities from the consolidation guidance and the exception that permitted sale accounting for certain mortgage securitizations when a transferor has not surrendered control over the transferred assets. The recognition and measurement provisions of the amended guidance were required to be applied prospectively. Additionally, beginning January 1, 2010, the concept of a qualifying special-purpose entity is no longer relevant for accounting purposes. Therefore, formerly qualifying special-purpose entities had to be re-evaluated for consolidation in accordance with applicable consolidation guidance, including the new accounting guidance relating to the consolidation of variable interest entities discussed in the previous paragraph. In 2002 and 2003, the Company transferred approximately $1.9 billion of one-to-four family residential mortgage loans to qualified special purpose trusts in two non-recourse securitization transactions. In exchange for the loans, the Company received cash, no more than 88% of the resulting securities, and the servicing rights to the loans. Through December 31, 2009, all of the retained securities were classified as investment securities available for sale as the qualified special purpose trusts were not included in the Company’s consolidated financial statements. Effective January 1, 2010, the Company determined that it was the primary beneficiary of both securitization trusts under the amended consolidation rules considering its role as servicer and its retained subordinated interests in the trusts. As a result, beginning January 1, 2010, the Company has included the one-to-four family residential mortgage loans that were included in the two non-recourse securitization transactions in its consolidated financial statements. The effect of that consolidation on January 1, 2010 was to increase loans receivable by $424 million, decrease the amortized cost of available-for-sale investment securities by $360 million (fair value of $355 million), and increase borrowings by $65 million. The transition adjustment at January 1, 2010 as a result of the Company’s adoption of the new accounting requirements was not significant. At March 31, 2010, the carrying value of the loans in the securitization trusts was $406 million. The combined outstanding principal amount of mortgage-backed securities issued by the qualified special purpose trusts was $414 million at March 31, 2010 and the principal amount of such securities held by the Company was $352 million. The remainder of the outstanding mortgage-backed securities were held by parties unrelated to M&T. Because the transactions were non-recourse, the Company’s maximum exposure to loss as a result of its association with the trusts at March 31, 2010 is limited to realizing the carrying value of the loans less the $62 million carrying value of the mortgage-backed securities outstanding to third parties. In the first quarter of 2009, the Company securitized approximately $141 million of one-to-four family residential mortgage loans in guaranteed mortgage securitizations with Fannie Mae. The Company recognized no gain or loss on the transactions as it retained all of the resulting securities. Such securities were classified as investment securities available for sale. The Company expects no material credit-related losses on the retained securities as a result of the guarantees by Fannie Mae. The Company had no such securitizations in the first quarter of 2010. Other variable interest entities in which the Company holds a variable interest are described below. M&T has a variable interest in a trust that holds AIB ADSs for the purpose of satisfying options to purchase such shares for certain employees. The trust purchased the AIB ADSs with the proceeds of a loan from an entity subsequently acquired by M&T. Proceeds from option exercises and any dividends and other earnings on the trust assets are used to repay the loan plus interest. Option holders have no preferential right with respect to the trust assets and the trust assets are subject to the claims of M&T’s creditors. The trust has been included in the Company’s consolidated financial statements. As a result, included in investment securities available for sale were 591,813 AIB ADSs with a carrying value of approximately $2 million at both March 31, 2010 and December 31, 2009. Outstanding options granted to employees who have continued service with M&T totaled 189,450 at each of March 31, 2010 and December 31, 2009. All outstanding options were fully vested and exercisable at both March 31, 2010 and December 31, 2009. The options expire at various dates through October 2011. The AIB ADSs are included in available for sale investment securities and have a fair value of $2 million and an amortized cost of $13 million at March 31, 2010. As described in note 4, M&T has issued junior subordinated debentures payable to various trusts that have issued Capital Securities. M&T owns the common securities of those trust entities. The Company is not considered to be the primary beneficiary of those entities and, accordingly, the trusts are not included in the Company’s consolidated financial statements. At March 31, 2010 and December 31, 2009, the Company included the Junior Subordinated Debentures as “long-term borrowings” in its consolidated balance sheet. The Company has recognized $34 million in other assets for its “investment” in the common securities of the trusts that will be concomitantly repaid to M&T by the respective trust from the proceeds of M&T’s repayment of the junior subordinated debentures associated with preferred capital securities described in note 4. The Company has invested as a limited partner in various real estate partnerships that collectively had total assets of approximately $1.1 billion and $1.0 billion at March 31, 2010 and December 31, 2009, respectively. Those partnerships generally construct or acquire properties for which the investing partners are eligible to receive certain federal income tax credits in accordance with government guidelines. Such investments may also provide tax deductible losses to the partners. The partnership investments also assist the Company in achieving its community reinvestment initiatives. As a limited partner, there is no recourse to the Company by creditors of the partnerships. However, the tax credits that result from the Company’s investments in such partnerships are generally subject to recapture should a partnership fail to comply with the respective government regulations. The Company’s maximum exposure to loss of its investments in such partnerships was $246 million, including $92 million of unfunded commitments, at March 31, 2010 and $246 million, including $89 million of unfunded commitments, at December 31, 2009. The Company has not provided financial or other support to the partnerships during the quarters ended March 31, 2010 and 2009 that was not contractually required. Management currently estimates that no material losses are probable as a result of the Company’s involvement with such entities. In accordance with the accounting provisions for variable interest entities, the Company, in its position as limited partner, does not direct the activities that most significantly impact the economic performance of the partnerships and therefore, the partnership entities are not included in the Company’s consolidated financial statements.

Fair value measurements

3 Months Ended

Mar. 31, 2010

Fair value measurements [Abstract]

Fair value measurements

11. Fair value measurements

GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has not made any fair value elections as of March 31, 2010.

Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.

	•		Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities.

	•		Level 2 — Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

	•		Level 3 — Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the 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 trading 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 continuing disruption in the credit markets, trading activity in privately issued mortgage-backed securities has been 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 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. Therefore, 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 March 31, 2010. However, the Company could not readily ascertain that the basis of such valuations could be ascribed to orderly and observable trades in the market for privately issued residential mortgage-backed securities. As a result, the Company also performed internal modeling to estimate the cash flows and fair value of 145 of its privately issued residential mortgage-backed securities with an amortized cost basis of $1.8 billion at March 31, 2010. 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 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 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 145 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 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 37% with a 63% average weighting placed on the values provided by the independent sources. The Company concluded its estimate of fair value for the $1.8 billion of privately issued residential mortgage-backed securities to approximate $1.5 billion, which implies a weighted-average market yield based on reasonably likely cash flows of 9.5%. Other valuations of privately issued mortgage-backed securities were determined by reference to independent pricing sources without adjustment.

Included in CDOs 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 March 31, 2010. 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 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 March 31, 2010, the total amortized cost and fair value of securities backed by trust preferred securities issued by financial institutions and other entities was $102 million and $126 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 March 31, 2010.

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 March 31, 2010 and December 31, 2009 measured at estimated fair value on a recurring basis:


	Fair value
	measurements at
	March 31,
	2010		Level 1(a)		Level 2(a)		Level 3
	(in thousands)
Trading account assets	$	403,476		36,920		366,556		—
Investment securities available for sale:
U.S. Treasury and federal agencies		100,105		—		100,105		—
Obligations of states and political subdivisions		71,720		—		71,720		—
Mortgage-backed securities:
Government issued or guaranteed		3,688,910		—		3,688,910		—
Privately issued residential		1,664,341		—		—		1,664,341
Privately issued commercial		25,125		—		—		25,125
Collateralized debt obligations		125,755		—		—		125,755
Other debt securities		285,691		—		285,236		455
Equity securities		135,619		121,395		14,224		—

		6,097,266		121,395		4,160,195		1,815,676

Real estate loans held for sale		423,218		—		423,218		—
Other assets (b)		79,182		—		70,688		8,494

Total assets	$	7,003,142		158,315		5,020,657		1,824,170

Trading account liabilities	$	316,026		2,627		313,399		—
Other liabilities (b)		2,022		—		1,699		323

Total liabilities	$	318,048		2,627		315,098		323


	Fair value
	measurements at
	December 31,
	2009		Level 1		Level 2		Level 3
	(in thousands)
Trading account assets	$	386,984		40,836		346,148		—
Investment securities available for sale:
U.S. Treasury and federal agencies		104,686		—		104,686		—
Obligations of states and political subdivisions		62,923		—		62,923		—
Mortgage-backed securities:
Government issued or guaranteed		3,902,282		—		3,902,282		—
Privately issued residential		2,064,904		—		—		2,064,904
Privately issued commercial		25,166		—		—		25,166
Collateralized debt obligations		115,346		—		—		115,346
Other debt securities		268,201		—		267,781		420
Equity securities		160,870		145,817		15,053		—

		6,704,378		145,817		4,352,725		2,205,836


Real estate loans held for sale		652,761		—		652,761		—
Other assets (b)		78,216		—		73,788		4,428

Total assets	$	7,822,339		186,653		5,425,422		2,210,264


Trading account liabilities	$	302,198		5,577		296,621		—
Other liabilities (b)		6,039		—		1,531		4,508

Total liabilities	$	308,237		5,577		298,152		4,508


(a)		There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three-month period ended March 31, 2010.

(b)		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 March 31, 2010 were as follows:


																	Changes in
																	unrealized
																	gains (losses)
				Total gains (losses)													included in
				realized/unrealized													earnings
																	related to
							Included in										assets still
	Balance-						other					Transfer in			Balance-		held at
	January 1,			Included			comprehensive					and/or out of			March 31,		March 31,
	2010			in earnings			income		Settlements			Level 3(c)			2010		2010
	(in thousands)
Investment securities available for sale:
Privately issued residential mortgage- backed securities	$	2,064,904			(26,447	)(a)		74,454		(93,322	)		(355,248	)(d)		1,664,341		(26,447	)(a)
Privately issued commercial mortgage- backed securities		25,166			—			2,073		(2,114	)		—			25,125		—
Collateralized debt obligations		115,346			(355	)(a)		10,895		(131	)		—			125,755		(355	)(a)
Other debt securities		420			—			35		—			—			455		—

		2,205,836			(26,802	)		87,457		(95,567	)		(355,248	)		1,815,676		(26,802	)
Other assets and other liabilities		(80	)		18,022	(b)		—		—			(9,771	)		8,171		7,630	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended March 31, 2009 were as follows:


																	Changes in
																	unrealized
																	gains (losses)
			Total gains (losses)														included in
			realized/unrealized														earnings
																	related to
						Included in			Purchases,			Transfer in					assets still
	Balance-					other			sales,			and/or			Balance-		held at
	January 1,		Included			comprehensive			issuances &			out of			March 31,		March 31,
	2009		in earnings			income			settlements			Level 3(c)			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		—			1			—			12,143			12,182		—
Government issued or guaranteed mortgage- backed securities		84,544		—			—			—			(84,544	)		—		—
Privately issued residential mortgage- backed securities		2,326,554		(32,199	)(a)		177,505			(122,457	)		—			2,349,403		(32,199	)(a)
Privately issued commercial mortgage- backed securities		41,046		—			(3,262	)		(5,569	)		—			32,215		—
Collateralized debt obligations		2,496		548	(a)		(75	)		(548	)		—			2,421		548	(a)
Equity securities		2,302		—			—			41			—			2,343		—

		2,462,512		(31,651	)		174,169			(128,533	)		(77,933	)		2,398,564		(31,651	)
Other assets and other liabilities		8,266		27,258	(b)		—			—			(13,487	)		22,037		24,043	(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.

(c)		The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(d)		As a result of the Company’s adoption of new accounting rules governing the consolidation of variable interest entities, effective January 1, 2010 the Company derecognized $355 million of available-for-sale investment securities previously classified as Level 3 measurements. Further information regarding the Company’s adoption of the new accounting requirements is included in note 10.

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 in accordance with GAAP.

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 $793 million at March 31, 2010, ($471 million and $322 million of which were classified as Level 2 and Level 3, respectively) and $450 million at March 31, 2009 ($229 million and $221 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 March 31, 2010 and 2009 were decreases of $58 million and $89 million for the three-month periods ended March 31, 2010 and 2009, 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 March 31, 2010, no stratum of capitalized servicing rights had a carrying value equal to its fair value. Changes in the fair value-based valuation allowance for capitalized servicing rights recognized for the three months ended March 31, 2010 were insignificant. At March 31, 2009, $44 million of capitalized servicing rights had a carrying value equal to their fair value. Changes in fair value of capitalized servicing rights recognized for the three months ended March 31, 2009 were an increase of $5 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 during the three months ended March 31, 2010 and 2009 that were still held by the Company as of that date were $17 million and $21 million, respectively. Changes in fair value recognized for those foreclosed assets held by the Company at each of March 31, 2010 and 2009 were $10 million.

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 follows.

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


	March 31, 2010						December 31, 2009
	Carrying			Calculated			Carrying			Calculated
	Amount			Estimate			Amount			Estimate
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,043,669		$	1,043,669		$	1,246,342		$	1,246,342
Interest-bearing deposits at banks		121,305			121,305			133,335			133,335
Trading account assets		403,476			403,476			386,984			386,984
Investment securities		8,104,646			7,968,513			7,780,609			7,629,485
Loans and leases:
Commercial loans and leases		13,220,181			12,849,919			13,479,447			13,090,206
Commercial real estate loans		20,724,118			20,057,326			20,949,931			20,426,273
Residential real estate loans		5,664,159			5,318,752			5,463,463			5,058,763
Consumer loans		11,835,583			11,423,810			12,043,845			11,575,525
Allowance for credit losses		(891,265	)		—			(878,022	)		—

Loans and leases, net		50,552,776			49,649,807			51,058,664			50,150,767
Accrued interest receivable		233,111			233,111			214,692			214,692

Financial liabilities:
Noninterest-bearing deposits	$	(13,622,819	)	$	(13,622,819	)	$	(13,794,636	)	$	(13,794,636	)
Savings deposits and NOW accounts		(26,180,045	)		(26,180,045	)		(25,073,269	)		(25,073,269	)
Time deposits		(6,945,716	)		(7,000,748	)		(7,531,495	)		(7,592,214	)
Deposits at foreign office		(789,825	)		(789,825	)		(1,050,438	)		(1,050,438	)
Short-term borrowings		(1,870,763	)		(1,870,763	)		(2,442,582	)		(2,442,582	)
Long-term borrowings		(10,065,894	)		(9,731,690	)		(10,240,016	)		(9,822,153	)
Accrued interest payable		(113,983	)		(113,983	)		(94,838	)		(94,838	)
Trading account liabilities		(316,026	)		(316,026	)		(302,198	)		(302,198	)

Other financial instruments:
Commitments to originate real estate loans for sale	$	8,171		$	8,171		$	(80	)	$	(80	)
Commitments to sell real estate loans		1,897			1,897			17,771			17,771
Other credit-related commitments		(54,962	)		(54,962	)		(55,954	)		(55,954	)
Interest rate swap agreements used for interest rate risk management		67,092			67,092			54,486			54,486

The following assumptions, methods and 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.

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 12, 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.

Commitments and contingencies

3 Months Ended

Mar. 31, 2010

Commitments and contingencies [Abstract]

Commitments and contingencies

12. Commitments and contingencies

In the normal course of business, various commitments and contingent liabilities are outstanding. The following table presents the Company’s significant commitments. Certain of these commitments are not included in the Company’s consolidated balance sheet.


	March 31,		December 31,
	2010		2009
	(in thousands)
Commitments to extend credit
Home equity lines of credit	$	6,468,527		6,482,987
Commercial real estate loans to be sold		60,858		180,498
Other commercial real estate and construction		1,377,866		1,360,805
Residential real estate loans to be sold		639,728		631,090
Other residential real estate		133,493		127,788
Commercial and other		7,162,824		7,155,188

Standby letters of credit		3,799,656		3,828,586

Commercial letters of credit		68,919		66,377

Financial guarantees and indemnification contracts		1,727,648		1,633,549

Commitments to sell real estate loans		915,949		1,239,001

Commitments to extend credit are agreements to lend to customers, generally having fixed expiration dates or other termination clauses that may require payment of a fee. Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Standby letters of credit generally are contingent upon the failure of the customer to perform according to the terms of the underlying contract with the third party, whereas commercial letters of credit are issued to facilitate commerce and typically result in the commitment being funded when the underlying transaction is consummated between the customer and a third party. The credit risk associated with commitments to extend credit and standby and commercial letters of credit is essentially the same as that involved with extending loans to customers and is subject to normal credit policies. Collateral may be obtained based on management’s assessment of the customer’s creditworthiness.

Financial guarantees and indemnification contracts are oftentimes similar to standby letters of credit and include mandatory purchase agreements issued to ensure that customer obligations are fulfilled, recourse obligations associated with sold loans, and other guarantees of customer performance or compliance with designated rules and regulations. Included in financial guarantees and indemnification contracts are loan principal amounts sold with recourse in conjunction with the Company’s involvement in the Fannie Mae Delegated Underwriting and Servicing program. The Company’s maximum credit risk for recourse associated with loans sold under this program totaled approximately $1.4 billion and $1.3 billion at March 31, 2010 and December 31, 2009, respectively.

Since many loan commitments, standby letters of credit, and guarantees and indemnification contracts expire without being funded in whole or in part, the contract amounts are not necessarily indicative of future cash flows.

The Company utilizes commitments to sell real 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 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 $94 million at March 31, 2010. Assets of subsidiaries providing reinsurance that are available to satisfy claims totaled approximately $74 million at March 31, 2010. 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. Management believes any reinsurance losses that may be payable by the Company will not be material to the Company’s consolidated financial position.

The Company is contractually obligated to repurchase previously sold residential mortgage loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation. When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans. The Company reduces residential mortgage banking revenues by an estimate for losses related to its obligations to loan purchasers. The amount of those charges is based on the volume of loans sold, the level of reimbursement requests received from loan purchasers and estimates of losses that may be associated with previously sold loans. At March 31, 2010, management believes that any remaining liability arising out of the Company’s obligation to loan purchasers is not material to the Company’s consolidated financial position.

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

3 Months Ended

Mar. 31, 2010

Segment information [Abstract]

Segment information

13. 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, 2009. The management accounting policies and processes utilized in compiling segment financial information are highly subjective and, unlike financial accounting, are not based on authoritative guidance similar to GAAP. As a result, the financial information of the reported segments is not necessarily comparable with similar information reported by other financial institutions. As also described in note 22 to the Company’s 2009 consolidated financial statements, neither goodwill nor core deposit and other intangible assets (and the amortization charges associated with such assets) resulting from acquisitions of financial institutions have been allocated to the 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 March 31
	2010									2009
				Inter-			Net						Inter-			Net
	Total			segment			income			Total			segment			income
	revenues(a)			revenues			(loss)			revenues(a)			revenues			(loss)
	(in thousands)
Business Banking	$	101,796			—			25,344			93,635			—			30,112
Commercial Banking		192,406			—			76,868			165,127			—			57,154
Commercial Real Estate		110,413			18			43,753			88,964			6			42,983
Discretionary Portfolio		(12,233	)		(2,747	)		(16,162	)		11,298			(3,084	)		(5,089	)
Residential Mortgage Banking		63,117			8,197			595			80,011			11,869			5,500
Retail Banking		307,475			2,687			59,037			284,652			2,655			52,363
All Other		51,066			(8,155	)		(38,480	)		(43,539	)		(11,446	)		(118,802	)

Total	$	814,040			—			150,955			680,148			—			64,221


	Average total assets
	Three months ended				Year ended
	March 31				December 31
	2010		2009		2009
	(in millions)
Business Banking	$	4,959		4,563		4,869
Commercial Banking		15,509		15,292		15,399
Commercial Real Estate		13,368		11,770		12,842
Discretionary Portfolio		14,571		13,407		13,763
Residential Mortgage Banking		2,222		2,737		2,552
Retail Banking		12,272		11,169		12,024
All Other		5,982		5,828		6,023

Total	$	68,883		64,766		67,472


(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 $5,923,000 and $4,933,000 for the three-month periods ended March 31, 2010 and 2009, 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.	3 Months Ended
	Mar. 31, 2010
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. [Abstract]
Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P.	14. Relationship with Bayview Lending Group LLC and Bayview Financial Holdings, L.P. In 2007, M&T invested $300 million to acquire a 20% minority interest in Bayview Lending Group LLC (“BLG”), a privately-held commercial mortgage lender. M&T recognizes income from BLG using the equity method of accounting. The carrying value of that investment was $240 million at March 31, 2010. 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 obtained loan servicing rights for small-balance commercial mortgage loans from BLG and Bayview Financial having outstanding principal balances of $5.8 billion and $5.5 billion at March 31, 2010 and December 31, 2009, respectively. Amounts recorded as capitalized servicing assets for such loans totaled $36 million at March 31, 2010 and $40 million at December 31, 2009. In addition, capitalized servicing rights at March 31, 2010 and December 31, 2009 also included $15 million and $17 million, respectively, for servicing rights that were obtained from Bayview Financial related to residential mortgage loans with outstanding principal balances of $4.0 billion at March 31, 2010 and $4.1 billion at December 31, 2009. Revenues from servicing residential and small-balance commercial mortgage loans obtained from BLG and Bayview Financial were $12 million and $13 million during the quarters ended March 31, 2010 and 2009, respectively. M&T Bank provided $10 million and $34 million of credit facilities to Bayview Financial at March 31, 2010 and December 31, 2009, respectively, of which $10 million and $24 million was outstanding at March 31, 2010 and December 31, 2009, respectively. In addition, at each of March 31, 2010 and December 31, 2009, the Company held $25 million of collateralized mortgage obligations in its available-for-sale investment securities portfolio that were securitized by Bayview Financial. Finally, the Company held $342 million and $352 million of similar investment securities in its held-to-maturity portfolio at March 31, 2010 and December 31, 2009, respectively.

Relationship of M&T and AIB	3 Months Ended
Relationship of M&T and AIB	Mar. 31, 2010
Relationship of M&T and AIB [Abstract]
Relationship of M&T and AIB	15. Relationship of M&T and AIB AIB received 26,700,000 shares of M&T common stock on April 1, 2003 as a result of M&T’s acquisition of a subsidiary of AIB on that date. Those shares of common stock owned by AIB represented 22.5% of the issued and outstanding shares of M&T common stock on March 31, 2010. While AIB maintains a significant ownership in M&T, the Agreement and Plan of Reorganization between M&T and AIB (“Reorganization Agreement”) includes several provisions related to the corporate governance of M&T that provide AIB with representation on the M&T and M&T Bank boards of directors and key board committees and certain protections of its rights as a substantial M&T shareholder. In addition, AIB has rights that facilitate its ability to maintain its proportionate ownership position in M&T. With respect to AIB’s right to have representation on the M&T and M&T Bank boards of directors and key board committees, for as long as AIB holds at least 15% of M&T’s outstanding common stock, AIB is entitled to designate four individuals, reasonably acceptable to M&T, on both the M&T and M&T Bank boards of directors. In addition, one of the AIB designees to the M&T board of directors will serve on each of the Executive; Nomination, Compensation and Governance; and Audit and Risk committees. Also, as long as AIB holds at least 15% of M&T’s outstanding common stock, neither the M&T nor the M&T Bank board of directors may consist of more than 28 directors without the consent of the M&T directors designated by AIB. AIB will continue to enjoy these rights if its holdings of M&T common stock drop below 15%, but not below 12%, so long as AIB restores its ownership percentage to 15% within one year. In the event that AIB holds at least 10%, but less than 15%, of M&T’s outstanding common stock, AIB will be entitled to designate at least two individuals on both the M&T and M&T Bank boards of directors and, in the event that AIB holds at least 5%, but less than 10%, of M&T’s outstanding common stock, AIB will be entitled to designate one individual on both the M&T and M&T Bank boards of directors. M&T also has the right to appoint one representative to the AIB board while AIB remains a significant shareholder. There are several other corporate governance provisions that serve to protect AIB’s rights as a substantial M&T shareholder and are embodied in M&T’s certificate of incorporation and bylaws. These protections include an effective consent right in connection with certain actions by M&T, such as amending M&T’s certificate of incorporation or bylaws in a manner inconsistent with AIB’s rights, engaging in activities not permissible for a bank holding company or adopting any shareholder rights plan or other measures intended to prevent or delay any transaction involving a change in control of M&T. AIB has the right to limit, with the agreement of at least one non-AIB designee on the M&T board of directors, other actions by M&T, such as reducing M&T’s cash dividend policy such that the ratio of cash dividends to net income is less than 15%, acquisitions and dispositions of significant amounts of assets, and the appointment or election of the chairman of the board of directors or the chief executive officer of M&T. The protective provisions described above will cease to be applicable when AIB no longer owns at least 15% of M&T’s outstanding common stock, calculated as described in the Reorganization Agreement. In an effort to raise its capital position to meet new Irish government-mandated capital requirements, AIB announced in March 2010 that it plans to sell its ownership interest in M&T by the end of 2010.