M&T Bank to issue $500 million preferreds, redeem TARP preferreds

By Stephanie N. Rotondo

Portland, Ore., April 27 - M&T Bank Corp. plans to issue $500 million of new perpetual preferred stock prior to the end of the second quarter, according to a press release issued Tuesday.

The sale is part of the company's effort to supplement its tier 1 capital.

In addition, the Federal Reserve approved the bank's application to acquire Wilmington Trust Corp., a financial holding company based in Wilmington, Del.

M&T Bank, a Buffalo-based bank, said it intends to redeem $330 million of preferred stock held by the U.S. Department of Treasury that was issued by Wilmington Trust under the Troubled Asset Relief Program. Another $370 million will be repaid by the end of the second quarter.

The second payment will redeem preferreds issued to the Treasury by Provident Bankshares Corp. and M&T.

M&T has an existing shelf registration that the new preferreds will be sold under.

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