Hudson City Bancorp and M&T Bank Corp. extended the deadline for their proposed merger to Oct. 31.
The lenders said they have been told by the Federal Reserve that it plans to reach a decision on the deal no later than Sept. 30, Paramus, New Jersey-based Hudson City said Friday in a statement.
The planned acquisition, the largest pending U.S. bank merger, has repeatedly stalled amid regulatory concerns since it was announced in 2012.
The Fed has held up the deal, valued at $3.7 billion when it was announced, as it reviews Buffalo, New York-based M&;T’s money-laundering controls.
M&T’s principal banking subsidiary, M&T Bank, operates banking offices in New York, Pennsylvania, Maryland, Virginia, West Virginia, Delaware and the District of Columbia.
M&T is the second-largest banking operation in Maryland, based on market share, according to data from SNL Financial. In 2014, M&T Bank Corp. had 14.5 percent of deposits, second to Bank of America’s 21.1 percent.
M&T had 181 branches in the state.