M&T Bank Corp. which has a branch office in Cortland is buying Hudson City Bancorp Inc. in a cash-and-stock deal valued at about $3.7 billion that will broaden its reach in the eastern U.S.
The buyout includes Hudson City's 135 branch offices located in New York, New Jersey and Connecticut.
The combined company will include 870 branches located in states running from Connecticut to Virginia. M&T says there is very little overlap between its existing branches and those of Hudson City.
Both companies' boards have approved the transaction, but it needs approval from both companies' shareholders. The deal is expected to add to earnings per share.
M&T, based in Buffalo, N.Y., has $80.8 billion in assets. Hudson City, based in Paramus, N.J., has $43.6 billion in assets.
M&T said it expects to receive about $25 billion in deposits and $28 billion in loans from the buyout.