First, each of us frames an element to the deal that compliments the other. In the case of M&T, Hudson City's strong capital base combined with its high quality portfolio of residential mortgages which carry a favorable risk weighting under regulatory capital rules, will result following a restructuring of a Hudson City security portfolio and long-term borrowings and an immediate start step up in the regulatory capital ratios for the combine company, particularly for the Tier 1 common capital ratio on which regulatory and investment communities have been focused.On Hudson City side, combining with M&T and asset-sensitive balance sheet will mitigate the interest rate risk position they find themselves in today. Further, the combination with M&T will enable Hudson City to move beyond its near-monoline focus on originating and holding residential mortgages toward becoming a full service commercial bank with a wide array with consumer and commercial banking products and services.
Hudson City Bancorp, Inc. To Merge With M&T Bank Corporation - Conference Call - (Transcript)
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