M&T Bank Set to Acquire Hudson City Bancorp for $3.7 Billion
M&T Bank said Monday that it had entered into a definitive agreement to acquire Hudson City Bancorp for $3.7 billion in stock and cash. The acquisition will see Hudson City merge into an M&T subsidiary—giving M&T access to 135 new branch locations in New Jersey, New York and Fairfield County, Conn. The deal would make for the largest bank merger of 2012 so far.
The boards of directors of each bank have approved the merger, which is now pending regulatory approval and approval by the shareholders of each company.
According to an investor presentation about the merger available online, the merger will greatly diversify Hudson City’s monoline residential mortgage focus—99 percent of its portfolio as of June 30, 2012. It will create a pro forma commercial real estate platform of $17.9 billion, providing the biggest boost for M&T, however, in the area of residential mortgages.
“M&T, which was established in 1856, and Hudson City, founded in 1868, have been serving their customers and communities for generations, and we look forward to building on that long history and tradition together in the future,” M&T Chairman and CEO Robert Wilmers said in a prepared statement about the merger.
“As a thrift, Hudson City focused primarily on deposits and mortgages,” Wilmers continued. “M&T will build on Hudson City’s loyal customer base to create a comprehensive community banking franchise that provides a full range of checking and savings accounts, debit and credit cards, home equity loans and other lending options, plus small business and commercial banking services and our premier wealth management and corporate trust solutions through Wilmington Trust.”
M&T acquired Wilmington Trust in late 2010.
Hudson City Chairman and CEO Ronald Hermance Jr. said that the merger “creates tremendous opportunities to build on the successes that each company has achieved individually in its own markets.”
M&T is headquartered in Buffalo, N.Y., and has $80.8 billion in assets. Post merger, the bank’s pro forma balance sheet is anticipated to increase by roughly $28 billion, it said.