Hudson City Bancorp, Inc. and M&T Bank announced that M&T has received approval from the Federal Reserve to complete the merger with Hudson City.
The transaction is expected to be completed on or about Nov. 1 pending approval by New York State regulators.
The merger gives Buffalo, NY, M&T a foothold in the New York metropolitan market. The merger had been in the works for three years.
Federal regulators had delayed the merger while M&T updated procedures and processes aimed at money laundering.
“At M&T, we are deeply committed to the success of the customers and communities we serve, and we look forward to the opportunity to bring that strong commitment to Hudson City’s markets,” said Robert G. Wilmers, M&T CEO. “M&T also brings a wider array of banking solutions and services. As a thrift, Hudson City focused primarily on deposits and mortgages. M&T will create a comprehensive banking franchise that provides a full range of checking and savings accounts, debit and credit cards, home equity and other lending options, investment and insurance services, small business and commercial banking services as well as our renowned wealth management and corporate trust solutions through Wilmington Trust.”
“In 2012, Hudson City developed a strategic plan to transform into a community commercial bank. When M&T approached us about a potential merger, we quickly realized that they had the business model we aspired to and that M&T could deploy it much more quickly for the benefit of our customers and the community. We also found their integrity and care for their customers was very similar to Hudson City’s values and culture. We believed it then and feel as strongly about it now,” added Denis J. Salamone, CEO of Hudson City.
“We have reached this milestone thanks to the extremely hard working employees at M&T, and I am gratified by their commitment to strengthening and sustaining our risk and regulatory compliance programs as we position M&T for future growth. We also thank the employees of Hudson City and the shareholders of both organizations for their patience as we have been doing this work,” Wilmers said.
Hudson City operates 135 branches, which are located in New Jersey (97 branches), downstate New York (29 branches) and Fairfield County, Connecticut (9 branches). Hudson City’s branches will continue to operate under the Hudson City name, as a division of M&T Bank, until they are converted to M&T’s network, which is expected to occur in the first quarter of 2016.
Customers will receive additional information after the merger has been finalized.
The Hudson City merger had been subject to many delays. It comes about five years after the “take under” of Wilmington Trust by M&T, after the Delaware institution fell victim to bad loans.
Numerous civil and criminal cases have been filed in connection with loan practices of the bank.
