Hudson City Bancorp in Paramus, N.J., has been released from an enforcement action with federal regulators.
The $37 billion-asset Hudson City said the Office of the Comptroller of the Currency terminated the memorandum of understanding Friday. The OCC's order, issued in March 2012, had required Hudson City to implement enhanced operating procedures to reduce rate risk and funding concentrations, and improve liquidity, among other items.
"We believe these accomplishments, along with our strong ethical corporate culture, provide Hudson City with the necessary governance structure and risk management framework to meet the challenges facing all financial institutions in this current environment," Chairman and Chief Executive Denis Salamone said in a press release.
Hudson City in August 2012 agreed to be acquired by the $97 billion-asset M&T Bank in Buffalo, N.Y. The deadline for closing the deal has been repeatedly postponed as M&T upgrades its Bank Secrecy Act compliance systems. The two companies now expect the deal to close by April 30. Hudson City's news release Friday did not mention the pending merger with M&T.
Hudson City's shares rose less than 1% on Friday, to $9.76 apiece.