Regulatory concerns by the Federal Reserve Board have delayed the acquisition of Paramus, N.J.-based Hudson City Bancorp Inc. by Buffalo-based M&T Bank Corp. until at least late 2014.
M&T Bank officials recently announced an 11-month extension to Dec. 31, 2014 of the merger agreement announced last February. After that date either party may end the agreement if the deal has not been completed. Bank officials cautioned that regulatory approval might not be obtained or the merger wrapped up in that time.
If the deal goes through, M&T will take over the 135 Hudson City Savings Bank branches in Westchester County, Fairfield County and the tristate region and the savings bank”™s roughly $39 billion in assets.
M&T officials said the Buffalo bank early this year began a major initiative to address the Federal Reserve”™s concerns relating to M&T’s Bank Secrecy Act processes and anti-money-laundering compliance program. Those concerns have delayed Federal Reserve action on the acquisition.
“We continue to believe strongly that a merger with Hudson City is beneficial to institutions, their shareholders and the communities we serve. We could not have asked for a better partner than Hudson City as we continue to work towards a successful outcome,” Rene F. Jones, executive vice president and CFO of M&T, said in the announcement.
