"To the customers and communities now served by Hudson City, M&T brings a wider array of banking products and services," says Robert G. Wilmers, M&T Chairman and CEO.

We Also Recommend:

• House Representatives Warn FASB About Lease Accounting
• Trepp Charts Troubled CMBS Assets
• Micro Loans or Bust

"As a thrift, Hudson City focused primarily on deposits and mortgages, Wilmers says. “M&T will build on Hudson City's loyal customer base to create a comprehensive community banking franchise that provides a full range of checking and savings accounts, debit and credit cards, home equity loans and other lending options, plus small business and commercial banking services and our premier wealth management and corporate trust solutions through Wilmington Trust."

Under terms of the agreement, each Hudson City share will be worth 0.08 of an M&T share, and converted as either M&T stock or cash, according to individual Hudson City shareholders’ preference and under the terms of the merger agreement. The agreement specifies an aggregate split of 60% common stock of M&T and 40% cash.

Based on the closing price of M&T stock on Friday, the transaction is valued at approximately $3.7 billion. The merger will combine the companies’ capital ratios, capital generation and tangible book value per share, as well as its GAAP and operating earnings per share.

"M&T, which was established in 1856, and Hudson City, founded in 1868, have been serving their customers and communities for generations, and we look forward to building on that long history and tradition together in the future," said Wilmers.

Besides the New Jersey branches, M&T will acquire Hudson City's 29 downstate New York branches and nine branches in Fairfield County, Connecticut. M&T's existing branch network is adjacent to Hudson City's franchise, with very little overlap.

The combined network of 870 branches will stretch from Connecticut to Virginia. M&T expects to gain approximately $25 billion in deposits and $28 billion in loans from the merger, which would make M&T the fourth largest deposit share in New Jersey.

The merger has been approved by the boards of directors of each company, and is subject regulatory approvals and approval by M&T's and Hudson City's common shareholders. After the transaction is completed, Hermance will be appointed to the boards of directors of M&T and its principal banking subsidiary, M&T Bank.