Hudson City Bancorp Inc., parent of Hudson City Savings Bank, remains committed to its long-delayed merger with M&T Bank Corporation, it said as it announced it quarterly earnings Wednesday.
“We firmly believe that the M&T transaction remains financially attractive to Hudson City’s shareholders, and that continuing to pursue completion is in the best interest of Hudson City and the communities we serve,” Denis J. Salamone, the bank’s chairman and CEO, said in a prepared statement. “As a result, we remain committed to the merger.”
Paramus-based Hudson City said net income for the first quarter ended March 31 was $5.9 million, down from $42.5 million in the year-ago quarter. Diluted earnings per share fell to 1 cent, from 9 cents in the year-ago period.
“This has certainly been a challenging quarter for us,” Salamone said. “The latest unexpected delay in the merger contributed to the first quarter’s weak earnings. We believe future earnings can be improved significantly in the short term by a balance sheet restructuring and in the longer term by execution of the other strategic initiatives. However, both of these actions are complicated by the pendency of the merger.”
Earlier this month, Hudson City and M&T extended their merger deadline to Oct. 31, after federal officials said they would not be able to complete their review of the deal by a Thursday deadline.
The banks have been trying to merge since 2012, but have struggled to overcome regulatory concerns.
“We are very pleased that, during the first quarter, the Office of the Comptroller of the Currency terminated the memorandum of understanding entered into with the bank on March 30, 2012,” Salamone said. “In the course of satisfying the terms of the MOU, the bank, among other things, developed an enterprise risk management department as part of a ‘three lines of defense’ organizational structure, and implemented enhanced risk management policies, procedures and systems.”
ALSO ON NJBIZ: