Hudson City Bancorp and M&T Bank Corporation announced that M&T has received regulatory approval from the Federal Reserve to complete the merger with Hudson City.
Article continues below
The transaction is expected to be completed on or about November 1, 2015, pending approval by the New York State Department of Financial Services and the satisfaction of customary closing conditions.
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.
Headquartered in Buffalo, N.Y., M&T has earned the highest possible Community Reinvestment Act (CRA) rating on every exam by the Federal Reserve since 1982, and committed more than $1.5 billion in community development loans in 2014 to support affordable housing and neighborhood revitalization.
With $165.2 million in Small Business Administration (SBA) 7(a) loans made in federal fiscal year 2014, M&T was the 6th largest 7(a) SBA lender in the U.S. and the number one lender in most of its markets.
And, M&T contributed $21.8 million to more than 3,300 not-for-profit organizations in 2014. Since 2012, M&T has opened three new commercial banking offices in New Jersey, and now operates a total of seven offices in the state housing 140 employees responsible for commercial banking, residential mortgages, investment and insurance services and wealth management.
Under the terms of the merger agreement, each Hudson City share will be exchanged for consideration valued at 0.08403 of an M&T share in the form of either M&T common stock or cash, based upon the election of each Hudson City shareholder, subject to proration as specified in the merger agreement (which provides for an aggregate split of total consideration of approximately 60% common stock of M&T and approximately 40% cash).
The deadline for shareholders of Hudson City to elect the form of consideration they wish to receive in the transaction is expected to be 5:00 p.m., Eastern Daylight Time, on Friday, October 30, 2015.
Election materials will be mailed on or about September 30, 2015 to holders of record of Hudson City common stock at the close of business on September 21, 2015. ■