M&T Bank (NYSE: MTB) has announced today that it will acquire Hudson City Bancorp (NYSE: HCBK) for $3.7 billion, a 16% premium on Hudson City’s stock as of Friday’s close. M&T expects the deal to yield approximately $25 billion in deposits and $28 billion in loans. The payment will come from 40% cash, and 60% stock.As a part of the agreement, Hudson City Bancorp will become a subsidiary of M&T, and its current CEO Ronald Hermance will be inducted as a member of M&T’s board. The deal will see M&T expand its reach into to the New York, New Jersey, and Connecticut Tri-sate area, adding a total of 135 branches. M&T is no stranger to bank acquisitions. Since 2009, it has acquired Bradford Bank, Provident Bankshares, and Wilmington Trust.
