M&T Bank (NYSE:MTB) has agreed to buy Hudson City Bancorp (NASDAQ:HCBK). Under the terms of the agreement — which is said to be valued at approximately $3.7 billion — Hudson City will merge into a subsidiary of M&T.
“This merger creates tremendous opportunities to build on the successes that each company has achieved individually in its own markets,” Hudson City Chairman and CEO, Ronald E. Hermance, Jr. said in a press release. “Hudson City recently embarked on a diversification of our product lines and our balance sheet. This transaction accelerates that transformation.”
The Buffalo-based M&T will acquire Hudson City’s network of 135 branch offices, which are located in New Jersey, downstate New York and Fairfield County, Connecticut.
M&T Chairman and CEO Robert G. Wilmers said in a statement that the merger will bring a “wider array of banking products and services” to current Hudson City customers.
“As a thrift, Hudson City focused primarily on deposits and mortgages,” Wilmers said. “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.”
The merger will create a network that will stretch from Connecticut to Virginia and include 870 branches. The deal will also give M&T the fourth largest deposit share in New Jersey, as the bank expects to gain approximately $25 billion in deposits and $28 billion in loans from the merger (before acquisition accounting adjustments).