The long-delayed M&T Bank Corp. acquisition of New Jersey-based Hudson City Bancorp Inc. has been delayed again — but it’s still happening.
Buffalo-based M&T — which in 2014 moved up to No. 2 spot in the midstate’s deposit market share for banks — jointly announced with Hudson City the two are once again delaying their proposed acquisition while they continue to appease federal regulators.
The deal had been given a completion date of April 30, but the new closing date has been moved to Oct. 31. The extension has been approved by the boards of directors on both sides, according to a news release.
The Federal Reserve Board has assured both sides, according to the release, that it intends to act on the merger application by Sept. 30.
In early April, the Fed said it wouldn’t be able to rule on the merger by the April 30 deadline. That led to Hudson City’s board taking a step back from the merger and “considering its response” to the latest delay in the acquisition.
But the merger is back on after about three years of regulator delays in approving it. The two sides announced the merger agreement in August 2012, with M&T shelling out $3.7 billion to acquire Hudson City.
Federal regulators, however, have refused to approve the merger until M&T cleaned up its dealings with the Bank Secrecy Act and its anti-money-laundering compliance program.
The original date to close was Jan. 31, 2014, then extended to Dec. 31, 2014, then to April 30.
M&T trades on the New York Stock Exchange at MTB. The company plans to announce its first-quarter earnings Monday.