The Federal Reserve Board has approved M&T Bank Corp.'s application to acquire Wilmington Trust Corp. The Delaware-based Wilmington Trust Corp., struggling with bad real estate loans, agreed in November to sell itself to Buffalo, N.Y.-based M&T for $351 million.
A Baltimore-based unit of the corporation, Wilmington Trust Federal Savings Bank, entered into an agreement with federal regulators to boost capital levels and reduce bad loans on its books in February. The savings bank provides commercial banking and wealth management. Under the so-called supervisory agreement, the thrift also agreed to appoint by June 30 an independent director and senior executive and to revise its policies and procedures related to covering loan losses, among other requirements.
The purchase is expected to add to M&T Bank's presence in the Mid-Atlantic region. In recent years, the bank has acquired struggling rivals in Maryland, including Provident Bank in 2008.
The information was disclosed in an emailed statement.