Hudson City, M&T close in on bank merger

It has taken several years, but Hudson City Bancorp and M&T Bank Corp. cleared a major hurdle on Wednesday in their quest to merge.

M&T Bank said it has received approval from the Federal Reserve to complete the merger with Paramus-based Hudson City, the third-biggest bank in Monmouth and Ocean counties with $3.8 billion in deposits and 21 branches. It will eventually bring M&T Bank's nameplate to the Jersey Shore.

The two banks have been waiting for approval of its merger since August 2012. It's expected to be completed on Nov. 1, pending approval by the New York State Department of  Financial Services and the satisfaction of closing conditions.

Once completed, Hudson City will continue to operate under its own name until branches are converted to M&T's network, which would occur in the first quarter of 2016.

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"In 2012, Hudson City developed a strategic plan to transform into a community commercial bank, said Denis J. Salamone, chairman and chief executive officer of Hudson City, in a statement. "When M&T approached us about a potential merger, we quickly realized that they had the business model we aspired to and that M&T could deploy it much more quickly for the benefit of our customers and the community."

Robert G. Wilmer, M&T's chairman and CEO, said the company will expand Hudson's focus on deposits and mortgages, adding other banking services such as checking and savings accounts, debit and credit cards, home equity loans, and small business services.

“At M&T, we are deeply committed to the success of the customers and communities we serve, and we look forward to the opportunity to bring that strong commitment to Hudson City’s markets,” Wilmer said.

David P. Willis: 732-643-4039; dwillis@app.com; facebook.com/dpwillis732