After a three-year scrutiny, the main United States banking regulator, the Federal Reserve, yesterday cleared the merger between M&T Bank Corp of New York and Hudson City Bancorp Inc of New Jersey, a deal valued at approximately $3.7 billion.
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The deal has been delayed by regulator’s concerns about M&T’s anti-money laundering controls and procedures. The delay, which analysts have called one of the longest in US banking history, has served as a cautionary tale for other lenders seeking to get larger through acquisitions and has exacerbated a slowdown in deal-making.
To view the full article, register now. M&T had initially expected to gain deposits amounting to $25 billion and loans of $28 billion from the deal.
“In 2012, Hudson City developed a strategic plan to transform into a community commercial bank”, Denis J. Salamone, Hudson City’s chairman and CEO, said in a prepared statement Wednesday. The bank agreed September 24 to pay more than $30 million to resolve a federal investigation by the Justice Department and the Consumer Financial Protection Bureau into allegations of discriminatory lending practices.
Buffalo-headquartered M&T Bank Corp is a financial holding company having its principal banking subsidiary M&T Bank and Wilmington Trust NA.
“We also found their integrity and care for their customers was very similar to Hudson City’s values and culture”. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover.
Hudson City operates 135 branches, including 97 in New Jersey, the news release said. By the first quarter of 2016, M&T intends to convert branches of Hudson City Savings Bank to M&T.
Separately, TheStreet Ratings team rates HUDSON CITY BANCORP INC as a Buy with a ratings score of B-.
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He added that he was gratified by the commitment of M&T employees “to strengthening and sustaining our risk and regulatory compliance programs as we position M&T for future growth”.
