M&T Bank Corp. will buy Wilmington Trust Corp., whose 43 branches are the second highest in Delaware, for $351 million in a stock-for-stock transaction, the Buffalo-based company announced Monday.
The transaction is scheduled to close in mid-2011.
“This strategic partnership brings together two institutions that share many common values, and that operate several distinct but complementary lines of business,” M&T Chairman and CEO Robert Wilmers said in a statement.
Wilmington Trust on Monday reported a loss of nearly $370 million, or $4.06 per share, for the quarter ending Sept. 30 because of problems in its loan portfolio and income tax expense.
“Wilmington Trust today has two very strong fee-based businesses that continue to perform well,” said the bank’s Chairman and CEO Donald Foley said in the statement. “However, as our third quarter earnings announcement shows, we continue to face difficult financial realities associated with the credit quality of the loan portfolio in our banking business.”
M&T will acquire 48 branches in Delaware, $8.3 billion in deposits and $8.1 billion in loans, giving it the top deposit share in Delaware, officials said.
M&T Bank ranks second in the Rochester market with $3.25 billion in local deposits.
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