Continuing its rapid growth in the Northeast, M&T Bank in Buffalo, N.Y., announced early Monday that it is buying Hudson City Bancorp in Paramus, N.J., for $3.7 billion in cash and stock.

The deal for the $44 billion-asset Hudson City, which would be the largest in M&T's history, would add 135 branches in markets of New York, New Jersey and Connecticut, where the $80.8 billion-asset M&T has little presence. With the acquisition M&T would have roughly 870 branches stretching from Connecticut to Virginia.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.