UPDATE 2-Wilmington Trust reaches deal on U.S. criminal charges

(Adds details on settlement, statement by Wilmington Trust, other background)

WILMINGTON, Del., Oct 10 (Reuters) - Wilmington Trust Corp said on Tuesday it has reached a $60 million deal to resolve U.S. criminal charges that the bank concealed its deteriorating condition from regulators and investors in 2009 and 2010, just as a trial was set to begin.

The M&T Bank Corp unit said it is admitting no liability and that the settlement amount includes $16 million it previously paid as part of a related 2014 accord with the U.S. Securities and Exchange Commission.

"Wilmington Trust believes resolving this matter now is in the best interest of the company," the company said in a statement.

The settlement came after a U.S. judge disclosed that a deal had been reached just as a trial was set to begin on Tuesday in federal court Wilmington, Delaware.

U.S. District Judge Richard Andrews said the trial against the four other defendants, who are former Wilmington Trust executives, was postponed until March 12, 2018.

The U.S. government, criticized for a dearth of prosecutions tied to the 2008 financial crisis, was scheduled to spend eight weeks making its case.

The bank and the former executives were indicted on 19 counts for allegedly hiding from regulators and investors the deteriorating condition of its loans in 2009 and 2010, when it was bought by M&T Bank Corp of Buffalo, New York.

M&T was not charged.

Founded by the du Pont family in 1903, Wilmington Trust is the only bank that received federal bailout money under the Troubled Asset Relief Program (TARP) to be indicted, although 97 individuals have been indicted as a result of TARP-related investigations.

The financial crisis was sparked by the bursting of a housing bubble that had been fueled by loose lending standards.

During the crisis and accompanying recession, regulators seized more than 300 banks, including huge lenders such as IndyMac Bank and Washington Mutual. Most bankers who were prosecuted came from smaller institutions.

Wilmington Trust in 2014 agreed to pay $18.5 million to settle SEC charges that it underreported the amount of construction loans that were not being repaid after the financial crisis. (Reporting by Tom Hals in Wilmington, Del.; Additional reporting by Jonathan Stempel in New York and Nate Raymond in Boston; Editing by David Gregorio and Matthew Lewis)