BUFFALO, N.Y. (AP) — M&T Bank Corp. and Hudson City Bancorp Inc. said Tuesday that they expect further delays in completing their $3.7 billion deal.
M&T first announced plans in August 2012 to buy Hudson and filed applications with regulators in September 2012. But the bank said in April that it was facing delays due to the Federal Reserve's concerns about procedures related to its bank secrecy and anti-money-laundering compliance program.
The companies said Tuesday that they need further time to address the Fed's concerns and get the regulatory approval necessary to move forward. They expect the Fed won't take any action on its application before the latter part of 2014.
M&T said in a statement that it still believes a deal with Hudson City is beneficial to both companies, shareholders and the communities they serve.
As a result extra time needed to address the Fed, the banks have extended the date after which either can terminate the deal to from Jan. 31 to Dec. 31 of 2014.
The companies said they plan to close the deal as soon as possible following the receipt of all necessary regulatory approvals.
M&T, based in Buffalo, N.Y., is a financial holding company that owns M&T Bank, which has banks in the Northeast. Paramus, N.J.-based Hudson City has 135 branch offices in New York, New Jersey and Connecticut.
Shares of M&T fell $1.39, or 1.2 percent, to $113.77 by late afternoon Tuesday amid a modest market uptick. Hudson City shares fell 10 cents to $9.13.