Profits drop for M&T acquisition target

October 24, 2013 Updated Oct 24, 2013 at 8:47 AM EDT

By Allissa Kline, Buffalo Business First Reporter- Business First

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Profits drop for M&T acquisition target

October 24, 2013 Updated Oct 24, 2013 at 8:47 AM EDT


M&T Bank's latest acquisition target reported a decline in net income for the third quarter of 2013.

Hudson City Bancorp Inc.'s net income totaled $42.7 million, or 9 cents per share, for the quarter ending Sept. 30. That's a decrease of nearly 24 percent compared to the same quarter in 2012 when net income was $55.9 million, or 10 cents per share.

The purchase of Hudson City remains on hold until M&T satisfies federal regulators' concerns regarding the Buffalo bank's anti-money laundering compliance program. The exact nature of the concerns hasn't been disclosed.

But M&T officials say the bank continues to ramp up its risk management division, which involves the implementation of new technology and the hiring of compliance-related workers.

Last week, during the bank's third-quarter conference call with investors, CFO Rene Jones said the bank expects its expenses to remain elevated for several quarters as it continues to fix the compliance program.

Hudson City Bancorp is the holding company of Hudson City Savings Bank. It operates 135 retail branches in New Jersey, Downstate New York and Connecticut.

Under the current arrangement, either M&T or Hudson City may walk away from the pending $3.7 billion deal before Jan. 31. Both sides have said there is no guarantee the acquisition will be finalized before that date.