Quarterly Cash Dividend Increased to $0.08 Per Share PARAMUS, N.J.,
Jan. 24 /PRNewswire-FirstCall/ -- Hudson City Bancorp, Inc.
(NASDAQ:HCBK), the holding company for Hudson City Savings Bank,
reported today the results of its operations for the three-month
period and year ended December 31, 2006. Financial Highlights --
Basic and diluted earnings per common share were both $0.13 for the
fourth quarter of 2006 and 2005. Basic and diluted earnings per
common share were $0.54 and $0.53, respectively, for 2006 compared
with $0.49 and $0.48, respectively, for 2005. -- At its meeting
yesterday, the Board of Directors increased the quarterly cash
dividend to $0.08 per common share. The cash dividend is payable on
March 1, 2007 to stockholders of record at the close of business on
February 2, 2007. -- Net income increased 4.5% to $288.6 million
for the year ended December 31, 2006 and decreased 7.5% to $69.2
million for the three months ended December 31, 2006. -- Net
interest income increased 9.1% to $613.2 million for the year ended
December 31, 2006 and decreased 2.4% to $148.8 million for the
three months ended December 31, 2006. -- Our annualized return on
average stockholders' equity and annualized return on average
assets for the fourth quarter of 2006 were 5.55% and 0.80%,
respectively, compared with 5.68% and 1.10%, respectively, for the
fourth quarter of 2005. Our return on average stockholders' equity
and return on average assets for 2006 were 5.70% and 0.91%,
respectively, compared with 7.52% and 1.14%, respectively, for
2005. -- Our net interest rate margin and net interest rate spread
were 1.78% and 1.16%, respectively, for the fourth quarter of 2006
compared with 2.29% and 1.59%, respectively, for the fourth quarter
of 2005. For 2006, our net interest rate margin and net interest
rate spread were 1.96% and 1.31%, respectively, compared with 2.35%
and 1.84%, respectively, for 2005. -- Our efficiency ratio for the
fourth quarter of 2006 was 27.58% compared with 21.94% for the
fourth quarter of 2005. Our efficiency ratio for 2006 was 25.66%
compared with 22.40% for 2005. -- Net loans increased $4.03 billion
to $19.07 billion at December 31, 2006 reflecting purchases and
originations of first mortgage loans of $2.71 billion and $2.12
billion, respectively, during 2006 compared with $3.68 billion and
$2.07 billion, respectively, during 2005. The increase in total
loans also reflects the acquisition of Sound Federal Bancorp, Inc.
("Sound Federal") and it's $786.1 million portfolio during the
third quarter of 2006. -- Deposits increased $2.03 billion,
reflecting an increase in time deposits and $1.06 billion in
deposits due to the acquisition of Sound Federal. -- Borrowed funds
increased $5.62 billion to $16.97 billion at December 31, 2006. All
funds borrowed in 2006 have maturities of ten years and initial
call dates ranging from one to three years. -- The Board of
Directors has established April 24, 2007 as the date for the Annual
Meeting of Stockholders. The voting record date will be March 2,
2007. "The interest rate environment continued to exert downward
pressure on our net interest margin and interest rate spread during
the fourth quarter of 2006," said Ronald E. Hermance, Jr.,
Chairman, President and Chief Executive Officer. "Despite the
inverted yield curve, we were able to grow assets by over $7
billion, successfully complete the acquisition of Sound Federal,
and maintain a favorable total return for our shareholders. We plan
to continue our strategy of focused balance sheet growth,
repurchase of stock, and development of our newly entered markets
as we head into 2007. With our experienced management team and
strong capital base in place, we are well prepared for the
challenges which lie ahead." Statement of Income Summary Total
interest and dividend income for the three months ended December
31, 2006 increased $116.7 million, or 35.1%, to $449.0 million
compared with $332.3 million for the three months ended December
31, 2005. This increase was primarily due to a $7.05 billion, or
26.2%, increase in the average balance of interest-earning assets
to $33.94 billion for the three months ended December 31, 2006 from
$26.89 billion for the three months ended December 31, 2005. The
increase in interest and dividend income was also due to a 35 basis
point increase in the annualized weighted-average yield on total
average interest- earning assets to 5.29% for the fourth quarter of
2006 compared with 4.94% for the fourth quarter of 2005. Interest
and fees on mortgage loans increased $64.3 million primarily due to
a $4.19 billion increase in the average balance, reflecting
increases in our core investment of first mortgage loans. The $34.3
million increase in interest on mortgage-backed securities was
primarily due to a $2.05 billion increase in the average balance
reflecting increased purchases of variable- rate securities during
2006. Total interest and dividend income for the year ended
December 31, 2006 increased $435.9 million, or 36.9%, to $1.61
billion compared with $1.18 billion for the year ended December 31,
2005. This increase was primarily due to a $7.26 billion, or 30.3%,
increase in the average balance of interest- earning assets to
$31.23 billion for the year ended December 31, 2006 from $23.97
billion for the year ended December 31, 2005, primarily reflecting
our internally generated balance sheet growth and the investment of
the net proceeds from the second-step conversion and stock offering
in June 2005. The increase in interest and dividend income was also
due to a 25 basis point increase in the weighted-average yield on
total average interest-earning assets to 5.17% for 2006 compared
with 4.92% for 2005. Interest and fees on mortgage loans increased
$243.1 million primarily due to an increase in the average balance
of $4.03 billion. The $64.6 million increase in interest and
dividends on total investment securities was primarily due to
growth in the average balance of $1.19 billion, which reflected the
investment into short-term securities of part of the net proceeds
from the second-step conversion and stock offering. The $108.9
million increase in interest on mortgage-backed securities was
primarily due to a $1.80 billion increase in the average balance
reflecting increased purchases of variable-rate securities during
2006. Total interest expense for the three months ended December
31, 2006 increased $120.2 million, or 66.8%, to $300.1 million
compared with $179.9 million for the three months ended December
31, 2005. This increase was partially due to a $7.51 billion, or
35.2%, increase in the average balance of total interest-bearing
liabilities to $28.84 billion for the three months ended December
31, 2006 compared with $21.33 billion for the corresponding period
in 2005. The increase in the average balance of interest-bearing
liabilities funded our asset growth. The increase in total interest
expense was also due to a 78 basis point increase in the annualized
weighted-average cost of total interest-bearing liabilities to
4.13% for the three-month period ended December 31, 2006 compared
with 3.35% for the three-month period ended December 31, 2005,
which reflected the growth and repricing of our interest- bearing
liabilities during the rising short-term interest rate environment
experienced during 2006. Interest expense on borrowed funds for the
three months ended December 31, 2006 increased $71.3 million, or
73.9%, to $167.7 million primarily due to a $5.84 billion increase
in the average balance of borrowed funds and a 41 basis point
increase in the annualized weighted-average cost. The increase in
the average balance of borrowed funds was used to fund asset
growth. The increase in the annualized weighted-average cost of
borrowed funds reflected the continued growth of our borrowed funds
in the increasing interest rate environment. The $48.9 million
increase in interest expense on interest- bearing deposits was due
to a 114 basis point increase in the annualized weighted-average
cost due to the rising short-term interest rate environment, the
competitive pricing of our deposit products and a shift by our
customers, during 2006, to higher costing short-term time deposits
from our High Value Checking product. The increase in interest
expense on interest-bearing deposits also was due to the growth in
the average balance of $1.67 billion, reflecting in part, the
acquisition of Sound Federal. Total interest expense for the year
ended December 31, 2006 increased $384.8 million, or 62.4%, to
$1.00 billion compared with $616.8 million for the year ended
December 31, 2005. This increase was partially due to a $5.89
billion, or 29.4%, increase in the average balance of total
interest-bearing liabilities to $25.93 billion for the year ended
December 31, 2006 compared with $20.04 billion for the
corresponding period in 2005. The increase in the average balance
of interest-bearing liabilities funded our asset growth. The
increase in total interest expense was also due to a 78 basis point
increase in the weighted-average cost of total interest-bearing
liabilities to 3.86% for the year ended December 31, 2006 compared
with 3.08% for the year ended December 31, 2005, which reflected
the growth and repricing of our interest- bearing liabilities
during the rising short-term interest rate environment experienced
during 2006. Interest expense on borrowed funds for 2006 increased
$242.5 million due to a $5.38 billion increase in the average
balance of borrowed funds and a 34 basis point increase in the
weighted-average cost of borrowed funds. The increase in the
average balance of borrowed funds was used to fund asset growth.
The increase in the average cost of borrowed funds reflected new
borrowings with a higher rate than the existing borrowings. The
$142.4 million increase in interest expense on interest-bearing
deposits was due to a 111 basis point increase in the
weighted-average cost due to the rising short-term interest rate
environment, the competitive pricing of our deposit products and a
shift by our customers, during 2006, to higher costing short-term
time deposits from our High Value Checking product. Net interest
income for the three months ended December 31, 2006 decreased $3.6
million, or 2.4%, to $148.8 million compared with $152.4 million
for the corresponding period in 2005. Our net interest rate spread,
determined by subtracting the annualized weighted-average cost of
total interest-bearing liabilities from the annualized
weighted-average yield on total interest- earning assets, was 1.16%
for the fourth quarter of 2006 compared with 1.59% for the
corresponding period in 2005. For the fourth quarter of 2006, our
net interest margin, determined by dividing annualized net interest
income by total average interest-earning assets, was 1.78% compared
with 2.29% for the corresponding 2005 period. Net interest income
for the year ended December 31, 2006 increased $51.1 million, or
9.1%, to $613.2 million compared with $562.1 million for the
corresponding 2005 period. Our net interest rate spread was 1.31%
for 2006 compared with 1.84% for the year 2005. Our net interest
margin was 1.96% for the year ended December 31, 2006 compared with
2.35% for 2005. The decrease in our net interest income when
comparing the fourth quarter of 2006 to the fourth quarter of 2005
reflected the tightening of our net interest rate spread as a
result of the rising short-term interest rate environment. The
increase in our net interest income when comparing the year ended
December 31, 2006 to the comparable 2005 period reflected our
overall balance sheet growth and the investment into short-term
securities of the net proceeds from the second-step conversion and
stock offering, partially offset by the increase in the costs of
our deposits and borrowed funds due to the rising short-term
interest rate environment. The decrease in the net interest rate
spread and net interest margin was primarily due to the increase in
the weighted-average cost of interest-bearing liabilities. This
increase reflected the rising short-term interest rate environment,
affecting both our deposits and borrowed funds, and the shift
within our deposits to higher costing short- term time deposits.
The allowance for loan losses amounted to $30.6 million and $27.4
million at December 31, 2006 and 2005, respectively. The increase
in the allowance for loan losses was due to the inclusion of Sound
Federal's allowance for loan losses as a result of the acquisition.
The allowance for loan losses as a percent of total loans was 0.16%
at December 31, 2006 compared with 0.18% at December 31, 2005. We
did not record a provision for loan losses during the three-month
periods ended December 31, 2006 and 2005, nor did we record a
provision for loan losses for the year ended December 31, 2006. We
did record a provision of $65,000 during 2005. Net charge-offs for
the year 2006 were $76,000 compared with net recoveries of $8,000
for 2005. Non-performing loans at December 31, 2006 were $30.0
million compared with $19.3 million at December 31, 2005. The ratio
of non-performing loans to total loans was 0.16% at December 31,
2006 compared with 0.13% at December 31, 2005. The ratio of
allowance for loan losses to total non-performing loans was 102.09%
at December 31, 2006 compared with 141.84% at December 31, 2005.
Total non-interest income for the three months ended December 31,
2006 was $1.9 million compared with $1.5 million for the
corresponding 2005 period. Total non-interest income for the year
ended December 31, 2006 was $6.3 million compared with $8.0 million
for the comparable period in 2005. The decrease in total
non-interest income in the year reflected decreases in gains on
securities transactions, net, as there were minimal realized
gains/losses from sales of securities that occurred during 2006.
Total non-interest expense for the three months ended December 31,
2006 was $41.6 million compared with $33.8 million during the
corresponding 2005 period. This increase reflected a $3.6 million
increase in compensation and employee benefits primarily due to an
increase in compensation expense of $1.4 million and a $664,000
increase in expense related to our employee stock ownership plan,
reflecting increases in our stock price. Expense related to stock
options granted amounted to $2.3 million during the fourth quarter
of 2006, primarily reflecting the expensing of the options granted
in July 2006. Total non-interest expense for the year ended
December 31, 2006 was $159.0 million compared with $127.7 million
for 2005. This increase reflected a $20.2 million increase in
compensation and employee benefits primarily due to an increase in
the expense related to our employee stock ownership plan. Expense
related to stock options granted amounted to $5.5 million during
2006. Income tax expense for the three months ended December 31,
2006 was $40.0 million compared with $45.3 million for the
corresponding 2005 period. Our effective tax rate for the three
months ended December 31, 2006 was 36.60% compared with 37.72% for
the corresponding period in 2005. The 11.7% decrease in income tax
expense reflected the 9.1% decrease in income before income tax
expense. Income tax expense for the year ended December 31, 2006
was $172.0 million compared with $166.3 million for the
corresponding 2005 period. Our effective tax rate for the year
ended December 31, 2006 was 37.34% compared with 37.60% for the
year 2005. The 3.4% increase in income tax expense reflected the
4.1% increase in income before income tax expense. Final
regulations were issued in February 2006 by the State of New Jersey
eliminating the deduction for dividends received from a real estate
investment trust subsidiary. As a result of this change in tax
regulations, we anticipate our effective tax rate may increase
approximately 2% beginning in 2007. Statement of Financial
Condition Summary Total assets increased $7.43 billion, or 26.5%,
to $35.51 billion at December 31, 2006 from $28.08 billion at
December 31, 2005. The increase in total assets primarily reflected
a $4.03 billion increase in net loans and a $2.42 billion increase
in total mortgage-backed securities. The increase in loans
reflected purchases and originations of first mortgage loans of
approximately $2.71 billion and $2.12 billion, respectively, for
the year ended December 31, 2006 compared with $3.68 billion and
$2.07 billion, respectively, for the year 2005. The increase in
loans also reflected the addition of approximately $786.1 million
of loans due to the acquisition of Sound Federal. Loan originations
and purchases were substantially all in one- to four-family
mortgage loans. Purchased mortgage loans allow us to grow and
geographically diversify our mortgage loan portfolio at a
relatively low overhead cost while maintaining our traditional
thrift business model. At December 31, 2006, we were committed to
purchase and originate $951.0 million and $169.6 million,
respectively, of first mortgage loans, which are expected to settle
during the first quarter of 2007. The increase in total
mortgage-backed securities reflected purchases of approximately
$3.93 billion, approximately 98.7% of which were variable-rate
(adjustable annually) or hybrid (adjustable annually after fixed
periods of three to five years) instruments. All of our
mortgage-backed securities are directly or indirectly insured or
guaranteed by a U.S. government agency or a U.S.
government-sponsored enterprise. At December 31, 2006, we were
committed to purchase $846.9 million of mortgage-backed securities,
which are expected to settle during the first quarter of 2007.
Total liabilities increased $7.72 billion, or 33.7%, to $30.59
billion at December 31, 2006 from $22.87 billion at December 31,
2005. The increase in total liabilities primarily reflected a $5.62
billion increase in borrowed funds and a $2.03 billion increase in
deposits, including the $1.06 billion of deposits due to the
acquisition of Sound Federal. The increase in borrowed funds was
the result of securing $9.14 billion of new borrowings at a
weighted-average rate of 4.30%. These new borrowings have final
maturities of ten years and initial reprice dates ranging from one
to three years. The increase in total deposits reflected a $2.92
billion increase in our time deposits, including $780.0 million due
to the acquisition of Sound Federal, and a $576.5 million increase
in our money market checking accounts. These increases were
partially offset by a $1.52 billion decrease in our interest-
bearing transaction accounts, primarily from our High Value
Checking account product, due to customers shifting deposits to
short-term time deposits. Total stockholders' equity decreased
$280.6 million to $4.92 billion at December 31, 2006 from $5.20
billion at December 31, 2005. The decrease was primarily due to
repurchases of 33,747,243 shares of outstanding common stock at an
aggregate cost of $448.2 million and cash dividends declared and
paid to common stockholders of $161.4 million. These decreases to
stockholders' equity were partially offset by net income of $288.6
million for 2006. As of December 31, 2006, 44,314,000 shares were
available for repurchase under our existing stock repurchase
programs. At December 31, 2006, our stockholders' equity to asset
ratio was 13.86% and our year-to-date average stockholders' equity
to asset ratio was 16.00%. At December 31, 2006, our tangible book
value per share was $9.13. Hudson City Bancorp maintains its
corporate offices in Paramus, New Jersey. Hudson City Savings Bank,
a well-established community financial institution serving its
customers since 1868, is ranked in the top fifty U.S. financial
institutions by asset size. Hudson City Savings currently operates
a total of 111 branch offices in the New York metropolitan area.
The Federal Deposit Insurance Corporation insures Hudson City
Savings' deposits. Forward-Looking Statements This release may
contain certain "forward looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, and may be
identified by the use of such words as "may," "believe," "expect,"
"anticipate," "should," "plan," "estimate," "predict," "continue,"
and "potential" or the negative of these terms or other comparable
terminology. Examples of forward-looking statements include, but
are not limited to, estimates with respect to the financial
condition, results of operations and business of Hudson City
Bancorp. Any or all of the forward-looking statements in this
release and in any other public statements made by Hudson City may
turn out to be wrong. They can be affected by inaccurate
assumptions Hudson City might make or by known or unknown risks and
uncertainties. Consequently, no forward-looking statement can be
guaranteed. Hudson City does not intend to update any of the
forward-looking statements after the date of this release or to
conform these statements to actual events. Hudson City Bancorp,
Inc. and Subsidiary Consolidated Statements of Financial Condition
December 31, December 31, 2006 2005 (In thousands, except share and
per share amounts) Assets: Cash and due from banks $125,630 $97,672
Federal funds sold 56,616 4,587 Total cash and cash equivalents
182,246 102,259 Securities available for sale: Mortgage-backed
securities 2,404,421 2,520,633 Investment securities 4,379,615
3,962,511 Securities held to maturity: Mortgage-backed securities,
(fair value of $6,804,598 and $4,288,772 at December 31, 2006 and
2005, respectively) 6,925,210 4,389,864 Investment securities,
(fair value of $1,502,934 and $1,508,055 at December 31, 2006 and
2005, respectively) 1,533,969 1,534,216 Total securities 15,243,215
12,407,224 Loans, net of deferred loan costs 19,099,776 15,064,102
Allowance for loan losses (30,625) (27,393) Net loans 19,069,151
15,036,709 Federal Home Loan Bank of New York stock 445,006 226,962
Foreclosed real estate, net 3,161 1,040 Accrued interest receivable
194,229 140,723 Banking premises and equipment, net 73,929 49,132
Goodwill 150,831 - Other intangible assets 13,407 - Other assets
131,406 111,304 Total Assets $35,506,581 $28,075,353 Liabilities
and Stockholders' Equity: Deposits: Interest-bearing $12,917,286
$10,941,258 Noninterest-bearing 498,301 442,042 Total deposits
13,415,587 11,383,300 Repurchase agreements 8,923,000 7,900,000
Federal Home Loan Bank of New York advances 8,050,000 3,450,000
Total borrowed funds 16,973,000 11,350,000 Accrued expenses and
other liabilities 197,109 140,577 Total liabilities 30,585,696
22,873,877 Common stock, $0 01 par value, 3,200,000,000 shares
authorized; 741,466,555 shares issued; 557,787,921 and 588,905,543
shares outstanding at December 31, 2006 and 2005, respectively
7,415 7,415 Additional paid-in capital 4,553,614 4,533,329 Retained
earnings 1,877,840 1,759,492 Treasury stock, at cost; 183,678,634
and 152,561,012 shares at December 31, 2006 and 2005, respectively
(1,230,793) (798,232) Unallocated common stock held by the employee
stock ownership plan (228,257) (234,264) Unearned common stock held
by the recognition and retention plan - (2,815) Accumulated other
comprehensive loss, net of tax (58,934) (63,449) Total
stockholders' equity 4,920,885 5,201,476 Total Liabilities and
Stockholders' Equity $35,506,581 $28,075,353 Hudson City Bancorp,
Inc. and Subsidiary Consolidated Statements of Income (Unaudited)
For the Three Months Ended December 31, 2006 2005 (In thousands,
except per share data) Interest and Dividend Income: Interest and
fees on first mortgage loans $253,501 $189,217 Interest and fees on
consumer and other loans 6,876 3,225 Interest on mortgage-backed
securities held to maturity 80,383 49,099 Interest on
mortgage-backed securities available for sale 29,790 26,798
Interest on investment securities held to maturity 18,656 18,632
Interest and dividends on investment securities available for sale
50,628 40,772 Dividends on Federal Home Loan Bank of New York stock
6,150 2,363 Interest on federal funds sold 2,986 2,192 Total
interest and dividend income 448,970 332,298 Interest Expense:
Interest on deposits 132,430 83,472 Interest on borrowed funds
167,703 96,441 Total interest expense 300,133 179,913 Net interest
income 148,837 152,385 Provision for Loan Losses - - Net interest
income after provision for loan losses 148,837 152,385 Non-Interest
Income: Service charges and other income 1,903 1,476 Gains on
securities transactions, net - - Total non-interest income 1,903
1,476 Non-Interest Expense: Compensation and employee benefits
25,067 21,472 Net occupancy expense 7,386 5,482 Federal deposit
insurance assessment 438 421 Computer and related services 734 663
Other expense 7,942 5,721 Total non-interest expense 41,567 33,759
Income before income tax expense 109,173 120,102 Income Tax Expense
39,961 45,298 Net income $69,212 $74,804 Basic Earnings Per Share
$0.13 $0.13 Diluted Earnings Per Share $0.13 $0.13 Weighted Average
Number of Common Shares Outstanding: Basic 525,402,246 555,860,264
Diluted 535,514,559 569,088,786 Hudson City Bancorp, Inc. and
Subsidiary Consolidated Statements of Income (Unaudited) For the
Years Ended December 31, 2006 2005 (In thousands, except per share
data) Interest and Dividend Income: Interest and fees on first
mortgage loans $932,550 $689,435 Interest and fees on consumer and
other loans 19,698 10,786 Interest on mortgage-backed securities
held to maturity 262,417 182,309 Interest on mortgage-backed
securities available for sale 119,578 90,754 Interest on investment
securities held to maturity 74,592 72,582 Interest and dividends on
investment securities available for sale 181,259 118,635 Dividends
on Federal Home Loan Bank of New York stock 16,507 9,394 Interest
on federal funds sold 8,242 5,013 Total interest and dividend
income 1,614,843 1,178,908 Interest Expense: Interest on deposits
436,096 293,736 Interest on borrowed funds 565,514 323,038 Total
interest expense 1,001,610 616,774 Net interest income 613,233
562,134 Provision for Loan Losses - 65 Net interest income after
provision for loan losses 613,233 562,069 Non-Interest Income:
Service charges and other income 6,287 5,267 Gains on securities
transactions, net 4 2,740 Total non-interest income 6,291 8,007
Non-Interest Expense: Compensation and employee benefits 103,443
83,211 Net occupancy expense 25,015 20,211 Federal deposit
insurance assessment 1,695 1,656 Computer and related services
2,812 2,498 Other expense 25,990 20,127 Total non-interest expense
158,955 127,703 Income before income tax expense 460,569 442,373
Income Tax Expense 171,990 166,318 121,020 Net income $288,579
$276,055 Basic Earnings Per Share $0.54 $0.49 Diluted Earnings Per
Share $0.53 $0.48 Weighted Average Number of Common Shares
Outstanding: Basic 536,214,778 567,789,397 Diluted 546,790,604
581,063,426 Hudson City Bancorp, Inc. and Subsidiary Consolidated
Average Balance Sheets (Unaudited) For the Three Months Ended
December 31, 2006 Average Average Yield/ Balance Interest Cost
(Dollars in thousands) Assets: Interest-earnings assets: First
mortgage loans, net (1) $18,066,112 $253,501 5.61 % Consumer and
other loans 418,754 6,876 6.57 Federal funds sold 224,945 2,986
5.27 Mortgage-backed securities at amortized cost 8,887,791 110,173
4.96 Federal Home Loan Bank of New York stock 423,484 6,150 5.81
Investment securities at amortized cost 5,915,679 69,284 4.68 Total
interest-earning assets 33,936,765 448,970 5.29
Noninterest-earnings assets 579,248 Total Assets $34,516,013
Liabilities and Stockholders' Equity: Interest-bearing liabilities:
Savings accounts $811,329 2,025 0.99 Interest-bearing transaction
accounts 2,174,634 17,841 3.25 Money market accounts 877,976 7,627
3.45 Time deposits 8,763,673 104,937 4.75 Total interest-bearing
deposits 12,627,612 132,430 4.16 Repurchase agreements 8,589,848
86,186 3.98 Federal Home Loan Bank of New York advances 7,619,760
81,517 4.24 Total borrowed funds 16,209,608 167,703 4.10 Total
interest-bearing liabilities 28,837,220 300,133 4.13
Noninterest-bearing liabilities: Noninterest-bearing deposits
484,074 Other noninterest-bearing liabilities 205,001 Total
noninterest-bearing liabilities 689,075 Total liabilities
29,526,295 Stockholders' equity 4,989,718 Total Liabilities and
Stockholders' Equity $34,516,013 Net interest income/net interest
rate spread (2) $148,837 1.16 % Net interest-earning assets/net
interest margin (3) $5,099,545 1.78 % Ratio of interest-earning
assets to interest-bearing liabilities 1.18 x For the Three Months
Ended December 31, 2005 Average Average Yield/ Balance Interest
Cost (Dollars in thousands) Assets: Interest-earnings assets: First
mortgage loans, net (1) $13,878,363 $189,217 5.45 % Consumer and
other loans 220,228 3,225 5.86 Federal funds sold 219,837 2,192
3.96 Mortgage-backed securities at amortized cost 6,835,732 75,897
4.44 Federal Home Loan Bank of New York stock 194,709 2,363 4.85
Investment securities at amortized cost 5,541,857 59,404 4.29 Total
interest-earning assets 26,890,726 332,298 4.94
Noninterest-earnings assets 314,632 Total Assets $27,205,358
Liabilities and Stockholders' Equity: Interest-bearing liabilities:
Savings accounts $823,245 2,054 0.99 Interest-bearing transaction
accounts 3,800,369 29,314 3.06 Money market accounts 363,187 1,090
1.19 Time deposits 5,973,680 51,014 3.39 Total interest-bearing
deposits 10,960,481 83,472 3.02 Repurchase agreements 7,413,043
67,130 3.59 Federal Home Loan Bank of New York advances 2,954,565
29,311 3.94 Total borrowed funds 10,367,608 96,441 3.69 Total
interest-bearing liabilities 21,328,089 179,913 3.35
Noninterest-bearing liabilities: Noninterest-bearing deposits
442,628 Other noninterest-bearing liabilities 164,106 Total
noninterest-bearing liabilities 606,734 Total liabilities
21,934,823 Stockholders' equity 5,270,535 Total Liabilities and
Stockholders' Equity $27,205,358 Net interest income/net interest
rate spread (2) $152,385 1.59 % Net interest-earning assets/net
interest margin (3) $5,562,637 2.29 % Ratio of interest-earning
assets to interest-bearing liabilities 1.26 x (1) Amount is net of
deferred loan fees and allowance for loan losses and includes
non-performing loans. (2) Determined by subtracting the annualized
weighted average cost of total interest-bearing liabilities from
the annualized weighted average yield on total interest-earning
assets. (3) Determined by dividing annualized net interest income
by total average interest-earning assets. Hudson City Bancorp, Inc.
and Subsidiary Consolidated Average Balance Sheets (Unaudited) For
the Years Ended December 31, 2006 Average Average Yield/ Balance
Interest Cost(4) (Dollars in thousands) Assets: Interest-earnings
assets: First mortgage loans, net (1) $16,685,920 $932,550 5.59 %
Consumer and other loans 316,844 19,698 6.22 Federal funds sold
165,380 8,242 4.98 Mortgage-backed securities at amortized cost
8,022,309 381,995 4.76 Federal Home Loan Bank of New York stock
345,870 16,507 4.77 Investment securities at amortized cost
5,697,565 255,851 4.49 Total interest-earning assets 31,233,888
1,614,843 5.17 Noninterest-earnings assets 414,084 Total Assets
$31,647,972 Liabilities and Stockholders' Equity: Interest-bearing
liabilities: Savings accounts $796,410 7,851 0.99 Interest-bearing
transaction accounts 2,734,787 90,936 3.33 Money market accounts
688,311 20,670 3.00 Time deposits 7,417,812 316,639 4.27 Total
interest-bearing deposits 11,637,320 436,096 3.75 Repurchase
agreements 8,313,321 316,444 3.81 Federal Home Loan Bank of New
York advances 5,977,115 249,070 4.17 Total borrowed funds
14,290,436 565,514 3.96 Total interest-bearing liabilities
25,927,756 1,001,610 3.86 Noninterest-bearing liabilities:
Noninterest-bearing deposits 462,022 Other noninterest-bearing
liabilities 195,845 Total noninterest-bearing liabilities 657,867
Total liabilities 26,585,623 Stockholders' equity 5,062,349 Total
Liabilities and Stockholders' Equity $31,647,972 Net interest
income/net interest rate spread (2) $613,233 1.31 % Net
interest-earning assets/net interest margin (3) $5,306,132 1.96 %
Ratio of interest-earning assets to interest-bearing liabilities
1.20 x For the Years Ended December 31, 2005 Average Average Yield/
Balance Interest Cost (Dollars in thousands) Assets:
Interest-earnings assets: First mortgage loans, net (1) $12,656,118
$689,435 5.45 % Consumer and other loans 185,320 10,786 5.82
Federal funds sold 236,288 5,013 2.12 Mortgage-backed securities at
amortized cost 6,218,312 273,063 4.39 Federal Home Loan Bank of New
York stock 169,781 9,394 5.53 Investment securities at amortized
cost 4,503,416 191,217 4.25 Total interest-earning assets
23,969,235 1,178,908 4.92 Noninterest-earnings assets 324,004 Total
Assets $24,293,239 Liabilities and Stockholders' Equity:
Interest-bearing liabilities: Savings accounts $980,707 9,709 0.99
Interest-bearing transaction accounts 4,124,359 118,530 2.87 Money
market accounts 469,254 5,172 1.10 Time deposits 5,546,364 160,325
2.89 Total interest-bearing deposits 11,120,684 293,736 2.64
Repurchase agreements 6,447,560 226,909 3.52 Federal Home Loan Bank
of New York advances 2,469,529 96,129 3.89 Total borrowed funds
8,917,089 323,038 3.62 Total interest-bearing liabilities
20,037,773 616,774 3.08 Noninterest-bearing liabilities:
Noninterest-bearing deposits 437,790 Other noninterest-bearing
liabilities 148,523 Total noninterest-bearing liabilities 586,313
Total liabilities 20,624,086 Stockholders' equity 3,669,153 Total
Liabilities and Stockholders' Equity $24,293,239 Net interest
income/net interest rate spread (2) $562,134 1.84 % Net
interest-earning assets/net interest margin (3) $3,931,462 2.35 %
Ratio of interest-earning assets to interest-bearing liabilities
1.20 x (1) Amount is net of deferred loan fees and allowance for
loan losses and includes non-performing loans. (2) Determined by
subtracting the annualized weighted average cost of total
interest-bearing liabilities from the annualized weighted average
yield on total interest-earning assets. (3) Determined by dividing
annualized net interest income by total average interest-earning
assets. (4) At December 31, 2006, the weighted-average rate on our
outstanding interest-earning assets, other than our FHLB stock, was
as follows: first mortgage loans, 5.78%, consumer and other loans,
6.55%, federal funds sold, 5.25%, mortgage-backed securities, 5.
Hudson City Bancorp, Inc. and Subsidiary Selected Performance
Ratios (1) For the Three Months Ended December 31, 2006 2005 Return
on average assets 0.80% 1.10% Return on average stockholders'
equity 5.55 5.68 Net interest rate spread 1.16 1.59 Net interest
margin 1.78 2.29 Non-interest expense to average assets 0.48 0.50
Efficiency ratio (2) 27.58 21.94 Dividend payout ratio 57.69 53.85
Cash dividends paid per common share $0.075 $0.07 For the Year
Ended December 31, 2006 2005 Return on average assets 0.91% 1.14%
Return on average stockholders' equity 5.70 7.52 Net interest rate
spread 1.31 1.84 Net interest margin 1.96 2.35 Non-interest expense
to average assets 0.50 0.53 Efficiency ratio (2) 25.66 22.40
Dividend payout ratio 55.56 54.69 Cash dividends paid per common
share $0.30 $0.268 (1) Ratios are annualized where appropriate. (2)
Determined by dividing total non-interest expense by the sum of net
interest income and total non-interest income. Hudson City Bancorp,
Inc. and Subsidiary Selected Financial Ratios and Other Data At or
For The At or For The Period Ended Period Ended December 31,
December 31, 2006 2005 Asset Quality Ratios: Non-performing loans
to total loans 0.16% 0.13% Non-performing assets to total assets
0.09 0.07 Allowance for loan losses to non- performing loans 102.09
141.84 Allowance for loan losses to total loans 0.16 0.18 Capital
Ratios: Average stockholders' equity to average assets 16.00%
15.10% Stockholders' equity to assets 13.86 18.53 Book value per
common share $9.45 $9.44 Tangible book value per common share 9.13
9.44 Regulatory Capital Ratios: Bank: Tangible capital 11.28%
14.68% Leverage (core) capital 11.28 14.68 Total risk-based capital
30.92 41.31 Other Data: Full-time equivalent employees 1,272 1,108
Hudson City Bancorp, Inc. and Subsidiary Book Value Calculations
December 31, 2006 (In thousands, except share and per share
amounts) Stockholders' equity (thousands) $4,920,885 Goodwill and
other intangible assets (164,238) Tangible stockholders' equity
$4,756,647 Book Value Share Computation: Issued 741,466,555
Treasury shares (183,678,634) Shares outstanding 557,787,921
Unallocated ESOP shares (36,563,019) Unvested RRP shares (398,174)
Shares in trust (23,494) Book value shares 520,803,234 Book value
per share $9.45 Tangible book value per share $9.13 DATASOURCE:
Hudson City Bancorp, Inc. CONTACT: Susan Munhall, Investor
Relations, Hudson City Bancorp, Inc., +1-201-967-8290, Web site:
http://www.hcbk.com/
Copyright
Hudson City Bancorp (NASDAQ:HCBK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hudson City Bancorp (NASDAQ:HCBK)
Historical Stock Chart
From Jul 2023 to Jul 2024