M&T, Hudson City extend merger deadline to Oct. 31
BUFFALO, N.Y. — M&T Bank Corp. (NYSE: MTB) and Paramus, N.J.–based Hudson City Bancorp. Inc. (NASDAQ: HCBK) have again extended the deadline for finalizing their merger that they first announced in late August 2012.
The banking companies said in a news release last Friday that they have pushed the deadline back to Oct. 31. They had previously announced last Dec. 9 they would extend the deadline from Dec. 31 to April 30.
The extension, which both the M&T and Hudson City boards of directors have approved, will provide additional time to “obtain a regulatory determination on the applications necessary to complete the proposed merger,” according to the M&T news release.
The Federal Reserve Board has advised M&T and Hudson City that it intends to act on the merger application no later than September 30, M&T Bank said.
However, M&T can provide no assurance “as to whether or when the necessary regulatory approvals for the merger will be received.”
M&T has advised Hudson City that it has made “significant” progress in addressing the Federal Reserve’s concerns, Denis Salamone, chairman and CEO of Hudson City, said in the M&T news release.
“Based on our discussions with M&T and through the due diligence we have conducted, we believe that it is reasonable to agree to an extension to allow the regulatory process to be completed. Our board of directors consulted with its financial advisor and legal team to assess the nature and timing of the delay and the options available to the company and continues to believe that the M&T transaction remains financially attractive to Hudson City’s shareholders, and that continuing to pursue completion is in the best interest of Hudson City,” said Salamone.
M&T Bank is “fully committed to this merger, Robert Wilmers, chairman and CEO of M&T Bank, said in the release.
“We continue to believe strongly that it remains an extremely beneficial opportunity for both companies, including the shareholders, customers and communities we serve,” said Wilmers.
M&T in early 2013 learned that the Federal Reserve identified certain regulatory concerns with its procedures, systems, and processes relating to M&T’s Bank Secrecy Act and anti-money-laundering compliance program (“BSA/AML”), according to the Dec. 9 news release.
M&T then launched an initiative, which is ongoing, seeking to “fully address” the Federal Reserve’s concerns.
BSA / AML is short for Bank Secrecy Act / Anti-Money Laundering, a compliance program with a manual providing guidance on identifying and controlling risks associated with money laundering and terrorist financing, according to the online manual.
M&T is a financial holding company headquartered in Buffalo. M&T’s principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware, and the District of Columbia.
Hudson City Bancorp is a Delaware corporation organized in 1999 and serves as the holding company of its only subsidiary, Hudson City Savings Bank. Hudson City Savings Bank operates 135 banking offices in the New York City metropolitan area, according to M&T Bank.