PARAMUS, N.J., April 21 /PRNewswire-FirstCall/ -- Hudson City
Bancorp, Inc. (Nasdaq: HCBK), the holding company for Hudson City
Savings Bank, reported today that net income for the first quarter
of 2010 increased 16.6% to $148.9
million as compared to $127.7
million for the first quarter of 2009. Diluted
earnings per share increased 15.4% to $0.30 for the first quarter of 2010 as compared
to $0.26 for the first quarter of
2009. Net interest margin widened to 2.20% for the first
quarter of 2010 as compared to 2.06% for the first quarter of 2009.
The Board of Directors declared a quarterly cash dividend of
$0.15 per share payable on
May 28, 2010 to shareholders of
record on May 5, 2010.
Net income for the quarter included pre-tax securities gains of
$30.8 million from the sale of
$573.7 million of mortgage-backed
securities partially offset by $8.5
million of accelerated premium amortization and loss of
income on $1.13 billion of
mortgage-backed securities repurchased by the Federal Home Loan
Mortgage Corporation ("FHLMC"), a government-sponsored entity
("GSE"). See further discussion in the Statement of Financial
Condition Summary. The securities gains and the effects of
the GSE repurchase increased diluted earnings per share by
$0.03.
Ronald E. Hermance, Jr.,
Chairman, President and Chief Executive Officer commented, "We are
very pleased to report first quarter diluted earnings per share of
$0.30. As we noted at the end
of last quarter, we had $364.1
million of unrealized gains in our mortgage-backed
securities available-for-sale portfolio. We invest only in
U.S. Government and GSE securities which minimizes credit risk from
our securities portfolio. This allows us to more easily
analyze total return on our available for sale portfolio. In
periods of declining interest rates, our income on these securities
decreases, but the market value increases. We decided to take
advantage of the current market conditions and capture some of the
market gains because we believe principal prepayments will continue
to remain high and interest rates will eventually increase."
Mr. Hermance continued, "Due primarily to the GSE repurchase
mentioned above, our net interest margin decreased to 2.20% from
2.30% in the fourth quarter of 2009. Also, repayments on our
mortgage portfolio increased during 2009 and through the first
quarter of 2010. This increased level of repayments has
caused our annual growth rate, which is the annualized increase in
our total assets, to decrease to approximately 6.4% in the first
quarter of 2010 from 11.3% in 2009. However, we believe that
the slower growth rate, while it may impact earnings in the
short-term, is a better alternative to a higher growth rate at
reduced yields. We believe it is more prudent to preserve our
capital until market conditions allow for more profitable and
sustainable long-term growth."
Mr. Hermance further commented, "Non-performing loans increased
$117.2 million during the first
quarter to $744.9 million and our net
charge-offs for the quarter were $24.2
million. While there are signs that the economy and
housing markets are stabilizing, the elevated level of unemployment
and the extended length of time that it takes to complete a
foreclosure may continue to result in higher levels of
non-performing loans. However, we believe that the relatively
low loan-to-value ratios on our mortgage loans at the time of
origination have moderated our losses."
Mr. Hermance concluded, "While an uncertain economy and the
potential effects of the various government programs and regulatory
proposals will make 2010 a challenging year, we believe that our
strong balance sheet, capital position and our straightforward
business model will continue to serve our shareholders well.
Our sights are set on our long-term goals. We are
well-positioned for the eventual increase in interest rates and the
growth opportunities that should accompany a stronger economy.
We enjoy a stronger competitive position in mortgage
originations than we did before the economic crisis began, and we
remain optimistic about the future."
Financial highlights for the first quarter of 2010 are as
follows:
- Basic and diluted earnings per share were both $0.30 for the first quarter of 2010 as compared
to $0.26 for both basic and diluted
earnings per share for the first quarter of 2009.
- The Board of Directors declared a quarterly cash dividend of
$0.15 per share payable on
May 28, 2010 to shareholders of
record at the close of business on May 5,
2010.
- Net income amounted to $148.9
million for the first quarter of 2010, as compared to
$127.7 million for the first quarter
of 2009, an increase of 16.6%.
- Net interest income increased 16.7% to $331.1 million for the first quarter of 2010 as
compared to $283.8 million for the
first quarter of 2009.
- The provision for loan losses amounted to $50.0 million for the first quarter of 2010 as
compared to $45.0 million for the
linked fourth quarter of 2009 and $20.0
million for the first quarter of 2009.
- Our annualized return on average assets and annualized return
on average shareholders' equity for the first quarter of 2010 were
0.98% and 10.96%, respectively, as compared to 0.93% and 10.21%,
respectively, for the first quarter of 2009.
- Our net interest rate spread and net interest margin were 1.97%
and 2.20%, respectively, for the first quarter of 2010 as compared
to 1.75% and 2.06%, respectively, for the first quarter of
2009.
- Our efficiency ratio was 18.27% for the first quarter of 2010
compared with 19.15% for the first quarter of 2009. The
efficiency ratio is calculated by dividing non-interest expense by
the sum of net interest income and non-interest income.
- Our loan production was $1.80
billion for the first three months of 2010, which resulted
in a net increase of $311.1 million
in total loans to $32.09 billion at
March 31, 2010 from $31.78 billion at December
31, 2009.
- Deposits increased $810.8
million, or 3.3%, to $25.39
billion at March 31, 2010 from
$24.58 billion at December 31, 2009.
Statement of Financial Condition Summary
Total assets increased $963.9
million, or 1.6%, to $61.23
billion at March 31, 2010 from
$60.27 billion at December 31, 2009. The increase in total assets
reflected a $693.4 million increase
in total mortgage-backed securities and a $291.7 million increase in net loans.
The increase in loans reflected our focus on loan portfolio
growth through the origination of one- to four-family first
mortgage loans in New Jersey,
New York and Connecticut and, to a lesser extent, the
continued purchase of mortgage loans. We are a portfolio
lender and do not sell loans in the secondary market or to the
GSEs. For the first three months of 2010, we originated
$1.40 billion and purchased
$404.2 million of loans, compared to
originations of $1.32 billion and
purchases of $723.3 million for the
first three months of 2009. The origination and purchases of
loans were partially offset by principal repayments of $1.45 billion for the first quarter of 2010 as
compared to $1.35 billion for the
first quarter of 2009. Loan originations have increased
primarily due to an increase in mortgage refinancing caused by
market interest rates that are at near-historic lows as well as a
modest increase in home sales activity. The refinancing
activity has also caused an increase in principal repayments.
Total mortgage-backed securities increased $693.4 million during the first three months of
2010, reflecting purchases of $2.77
billion of variable-rate mortgage-backed securities issued
by GSEs. The increase was partially offset by repayments received
of $1.55 billion (excluding principal
receivable on FHLMC mortgage-backed securities) and sales of
$573.7 million, which resulted in a
net realized securities gain of $30.8
million (pre-tax). We believe that the continued
elevated levels of prepayments and the eventual increase in
interest rates will reduce the amount of unrealized gains available
in the portfolio. Accordingly, we sold these securities to
take advantage of the favorable pricing that currently exists in
the market.
During the first quarter of 2010, the Federal National Mortgage
Association ("FNMA") and FHLMC announced that they would be
repurchasing certain non-performing loans that are in
mortgage-backed securities that they issued (the "GSE repurchase").
Since FHLMC remits principal payments to us generally with a
45 day delay, we will not receive the proceeds until April 2010. Included in mortgage-backed
securities at March 31, 2010 is
principal receivable of $1.13 billion
related to the GSE repurchase. We plan on reinvesting these
proceeds in mortgage-backed securities. Commitments to
purchase mortgage-backed securities totaled $1.89 billion at March 31,
2010.
Total liabilities increased $907.0
million, or 1.7%, to $55.84
billion at March 31, 2010 from
$54.93 billion at December 31, 2009. The increase in total
liabilities primarily reflected an $810.8
million increase in deposits. The increase in total deposits
reflected a $329.7 million increase
in our time deposits, a $202.7
million increase in our money market checking accounts and a
$289.2 million increase in our
interest-bearing transaction accounts and savings accounts.
Borrowings amounted to $29.98 billion
at March 31, 2010, unchanged from
December 31, 2009. During the
first three months of 2010, we modified $1.33 billion of borrowings to extend the call
dates of the borrowings by between three and four years, thereby
reducing our interest rate risk and the amount of borrowings that
may be called in any one quarter. Due to brokers amounted to
$125.6 million as compared to
$100.0 million at December 31, 2009. Due to brokers at March 31, 2010 represents securities purchased in
the first quarter of 2010 with settlement dates in the second
quarter of 2010.
Total shareholders' equity increased $56.9 million to $5.40 billion at March 31, 2010 from $5.34
billion at December 31, 2009.
The increase was primarily due to net income of $148.9 million for the quarter ended March 31, 2010. These increases to shareholders'
equity were partially offset by cash dividends paid to common
shareholders of $74.0 million and a
$26.0 million decrease in accumulated
other comprehensive income primarily due to a decrease in the net
unrealized gain on securities available-for-sale. This
decrease was due primarily to the sale of mortgage-backed
securities during the first quarter of 2010 which resulted in a net
realized gain of $30.8 million.
At March 31, 2010, our
shareholders' equity to asset ratio was 8.81% and our tangible book
value per share was $10.63.
The accumulated other comprehensive income of $158.5 million at March
31, 2010 includes a $179.5
million after-tax net unrealized gain on securities
available for sale ($303.4 million
pre-tax) partially offset by a $21.0
million after-tax accumulated other comprehensive loss
related to the funded status of our employee benefit plans.
Statement of Income Summary
The Federal Open Market Committee of the Board of Governors of
the Federal Reserve System (the "FOMC") noted that economic
activity has continued to strengthen and that the labor market is
stabilizing during the first quarter of 2010. The national
unemployment rate decreased to 9.7% in March
2010 as compared to 10.0% in December
2009 and 9.8% in September
2009. Although there has been recent improvement in
the economy, the FOMC decided to maintain the overnight lending
rate at zero to 0.25% during the first quarter of 2010. As a
result, short-term market interest rates have remained at low
levels during the first quarter of 2010. This allowed us to
continue to re-price our short-term deposits thereby reducing our
cost of funds. The yields on mortgage-related assets have also
remained at relatively low levels due primarily to the Federal
Reserve's program to purchase mortgage-backed securities.
While the intent of this program was to stimulate the housing
market, it also resulted in additional price competition for
mortgage loans which are our primary product. The Federal
Reserve ended this program on March 31,
2010 and we anticipate that this will allow us to grow our
loan portfolio at a faster rate than in recent quarters. As
compared to the first quarter of 2009, our net interest rate spread
and net interest margin increased for the first quarter of 2010 as
we repriced deposits to lower rates during 2009 at a faster pace
than our interest-earning assets repriced. However, our net
interest margin decreased to 2.20% during the first quarter of 2010
from 2.30% for the fourth quarter of 2009 as yields on
interest-earning assets continued to decrease as consumers
refinanced mortgage loans to lower rates.
Net interest income increased $47.3
million, or 16.7%, to $331.1
million for the first quarter of 2010 as compared to
$283.8 million for the first quarter
of 2009. During the first quarter of 2010, our net interest rate
spread increased 22 basis points to 1.97%, as compared to 1.75% for
the same quarter in 2009. Our net interest margin increased 14
basis points to 2.20% as compared to 2.06% for the first quarter of
2009.
Total interest and dividend income for the first quarter of 2010
increased $11.6 million, or 1.6%, to
$734.9 million as compared to
$723.3 million for the first quarter
of 2009. The increase in total interest and dividend income was
primarily due to a $5.18 billion, or
9.6%, increase in the average balance of total interest-earning
assets to $59.08 billion for the
first quarter of 2010 as compared to $53.90
billion for the first quarter of 2009. The increase in
the average balance of total interest-earning assets was partially
offset by a decrease of 39 basis points in the annualized
weighted-average yield to 4.98% for the quarter ended March 31, 2010 from 5.37% for the same quarter in
2009.
Interest on first mortgage loans increased $14.0 million to $428.2 million for the first
quarter of 2010 as compared to $414.2
million for the same period in 2009. This was primarily due
to a $2.15 billion increase in the
average balance of first mortgage loans, reflecting our continued
emphasis on the growth of our mortgage loan portfolio. The increase
in the average balance of first mortgage loans was partially offset
by a 21 basis point decrease in the weighted-average yield to 5.44%
from 5.65% for the 2009 first quarter.
Interest on mortgage-backed securities decreased $19.2 million to $231.7 million for the first
quarter of 2010 as compared to $250.9
million for the first quarter of 2009. This decrease
was due primarily to a 59 basis point decrease in the
weighted-average yield to 4.57% for the first quarter of 2010 from
5.16% for the first quarter of 2009. The decrease in the
weighted-average yield was partially offset by an $826.2 million increase in the average balance of
mortgage-backed securities to $20.26
billion during the first quarter of 2010 as compared to
$19.44 billion for the first quarter
of 2009.
The increases in the average balances of mortgage-backed
securities were due to purchases of these securities. We
purchase these securities as part of our overall management of
interest rate risk and to provide us with a source of monthly cash
flows. The decrease in the weighted average yield on
mortgage-backed securities is a result of lower yields on
securities purchased during 2009 and the first three months of 2010
when market interest rates were lower than the yield earned on the
existing portfolio.
The GSE repurchase resulted in the repayment of approximately
$1.13 billion of principal on the
mortgage-backed securities. Since FHLMC remits payments to us
generally with a 45 day delay, we will not receive the proceeds
until April 2010. The amount of the
repayment was recorded as principal receivable and is included in
mortgage-backed securities at March 31,
2010. We do not earn interest on the principal
receivable. As a result, net interest income for the first
quarter of 2010 was adversely affected by approximately
$3.6 million of amortization of
purchase premiums and the loss of interest income on the principal
receivable of approximately $4.9
million.
Interest on investment securities increased $11.7 million to $57.4 million for the first
quarter of 2010 as compared to $45.7
million for the same period in 2009. This increase was
due primarily to a $1.61 billion
increase in the average balance of investment securities to
$5.30 billion for the first quarter
of 2010 from $3.69 billion for the
first quarter of 2009. The impact on interest income from the
increase in the average balance of investment securities was
partially offset by a decrease in the average yield of investment
securities of 62 basis points to 4.33%.
Dividends on Federal Home Loan Bank of New York ("FHLB") stock increased $6.0 million, or 93.8%, to $12.4 million for the first quarter of 2010 as
compared to $6.4 million for the
first quarter of 2009. This increase was due primarily to a
274 basis point increase in the average dividend yield earned to
5.66% as compared to 2.92% for the first quarter of 2009. The
increase in dividend income was also due to a $2.7 million increase in the average balance to
$874.8 million for the first quarter
of 2010 as compared to $872.1 million
for the same period in 2009.
Interest on Federal funds sold amounted to $449,000 for the first quarter of 2010 as
compared to $176,000 for the first
quarter of 2009. The average balance of Federal funds sold
amounted to $789.3 million for the
first quarter of 2010 as compared to $146.8
million for the first quarter of 2009. The yield
earned on Federal funds sold was 0.23% for the 2010 first quarter
and 0.49% for the 2009 first quarter. The increase in the
average balance of Federal funds sold is a result of liquidity
provided by strong deposit growth and increased levels of
repayments on mortgage-related assets.
Total interest expense for the quarter ended March 31, 2010 decreased $35.8 million, or 8.2%, to $403.7 million as compared to $439.5 million for the quarter ended March 31, 2009. This decrease was primarily
due to a 61 basis point decrease in the weighted-average cost of
total interest-bearing liabilities to 3.01% for the quarter ended
March 31, 2010 compared with 3.62%
for the quarter ended March 31, 2009.
The decrease was partially offset by a $5.16
billion, or 10.5%, increase in the average balance of total
interest-bearing liabilities to $54.39
billion for the quarter ended March
31, 2010 compared with $49.23
billion for the first quarter of 2009. This increase in
interest-bearing liabilities was primarily used to fund asset
growth.
Interest expense on deposits decreased $34.9 million, or 25.1%, to $103.9 million for the first quarter of 2010 as
compared to $138.8 million for the
first quarter of 2009. This decrease is due primarily to a
decrease in the average cost of interest-bearing deposits of 125
basis points to 1.73% for the first quarter of 2010 as compared to
2.98% for the first quarter of 2009. The decrease was
partially offset by a $5.55 billion
increase in the average balance of interest-bearing deposits to
$24.41 billion during the first
quarter of 2010 as compared to $18.86
billion for the first quarter of 2009.
The increases in the average balances of interest-bearing
deposits reflect our plan to expand our branch network and to grow
deposits in our existing branches by offering competitive rates.
Also, in response to the economic conditions in 2009, we
believe that households increased their personal savings and
customers sought insured bank deposit products as an alternative to
investments such as equity securities and bonds. We believe
these factors contributed to our deposit growth. The decrease
in the average cost of deposits for 2010 reflected lower market
interest rates. At March 31,
2010, time deposits scheduled to mature within one year
totaled $12.27 billion with an
average cost of 1.67%. These time deposits are scheduled to
mature as follows: $5.82 billion with
an average cost of 1.69% in the second quarter of 2010,
$3.72 billion with an average cost of
1.55% in the third quarter of 2010, $1.21
billion with an average cost of 1.72% in the fourth quarter
of 2010 and $1.52 million with an
average cost of 1.84% in the first quarter of 2011. The
current yields offered for our six month, one year and two year
time deposits are 1.05%, 1.25% and 1.85%, respectively. In
addition, our money market accounts are currently yielding 1.0%.
Based on our deposit retention experience and current pricing
strategy, we anticipate that a significant portion of these time
deposits will remain with us as renewed time deposits or as
transfers to other deposit products at the prevailing rate.
Interest expense on borrowed funds decreased $861,000 to $299.8 million for the first quarter
of 2010 as compared to $300.7 million
for the first quarter of 2009. This was primarily due to a
$391.6 million decrease in the
average balance of borrowed funds to $29.98
billion for the first quarter of 2010 as compared to
$30.37 billion for the first quarter
of 2009. The weighted-average cost of borrowed funds amounted to
4.06% for the first quarter of 2010 as compared to 4.02% for the
first quarter of 2009.
We have historically used borrowings to fund a portion of the
growth in interest-earning assets. However, we were able to
fund substantially all of our growth in 2009 and for the first
quarter of 2010 with deposits. We anticipate that we will be
able to continue to use deposit growth to fund our asset growth,
however, we may use borrowings as a supplemental funding source if
deposit growth decreases. Substantially all of our borrowings
are callable quarterly at the discretion of the lender after an
initial non-call period of one to five years with a final maturity
of ten years. We believe, given current market conditions,
that the likelihood that a significant portion of these borrowings
would be called will not increase substantially unless interest
rates were to increase by at least 300 basis points. During
the first three months of 2010, we modified $1.33 billion of borrowings to extend the call
dates of the borrowings by between three and four years, thereby
reducing our interest rate risk.
The provision for loan losses amounted to $50.0 million for the quarter ended March 31, 2010 as compared to $20.0 million for the quarter ended March 31, 2009. The increase in the
provision for loan losses was due primarily to an increase in
non-performing loans and charge-offs as well as the continuing
elevated levels of unemployment during the first quarter of 2010.
Non-performing loans, defined as non-accruing loans and
accruing loans delinquent 90 days or more, amounted to $744.9 million at March
31, 2010 compared with $627.7
million at December 31, 2009.
The ratio of non-performing loans to total loans was 2.32% at
March 31, 2010 compared with 1.98% at
December 31, 2009. Early-stage
delinquencies (loans that are past due 30 to 89 days) decreased in
the first quarter of 2010. Loans delinquent 30 to 59 days
decreased $60.2 million to $370.7
million at March 31, 2010 as
compared to $430.9 million at
December 31, 2009. Loans
delinquent 60 to 89 days decreased $11.0
million to $171.5 million at March
31, 2010 as compared to $182.5
million at December 31, 2009.
The allowance for loan losses amounted to $165.8 million and $140.1
million at March 31, 2010 and
December 31, 2009, respectively.
The allowance for loan losses as a percent of total loans and
as a percent of non-performing loans was 0.52% and 22.26%,
respectively at March 31, 2010, as
compared to 0.44% and 22.32%, respectively at December 31, 2009.
Net charge-offs amounted to $24.2
million for the quarter ended March
31, 2010 as compared to net charge-offs of $4.7 million for the same quarter in 2009.
We generally obtain new collateral values for loans on or
before 180 days of delinquency. If the estimated fair value
of the collateral (less estimated selling costs) is less than the
recorded investment in the loan, we charge-off an amount to reduce
the loan to the fair value of the collateral less estimated selling
costs. As a result, certain losses inherent in our
non-performing loans are being recognized as charge-offs which may
result in a lower ratio of the allowance for loan losses to
non-performing loans.
Total non-interest income was $33.0
million for the first quarter 2010 as compared to
$2.3 million for the same quarter in
2009. Included in non-interest income for the quarter ended
March 31, 2010 were net gains on
securities transactions of $30.8
million which resulted from the sale of $573.7 million of mortgage-backed securities
available-for-sale.
Total non-interest expense increased $11.7 million, or 21.4%, to $66.5 million for the first quarter of 2010 from
$54.8 million for the first quarter
of 2009. The increase is primarily due to increases of
$10.0 million in Federal deposit
insurance expense and $1.5 million
increase in compensation and employee benefits expense. The
increase in Federal deposit insurance expense is due primarily to
the increases in our deposit insurance assessment rate as a result
of a restoration plan implemented by the FDIC to recapitalize the
Deposit Insurance Fund. The increase in compensation and
employee benefits expense included a $2.0
million increase in compensation costs, due primarily to
normal increases in salary as well as additional full time
employees and an $838,000 increase in
expense related to our stock benefit plans. These increases
were partially offset by a $1.1
million decrease in costs related to our health plan and
$798,000 decrease in pension expense.
At March 31, 2010, we had 1,500
full-time equivalent employees as compared to 1,458 at March 31, 2009. Included in other
non-interest expense for the first quarter of 2010 were write-downs
on foreclosed real estate and net losses on the sale of foreclosed
real estate of $1.4 million as
compared to $1.2 million for the
first quarter of 2009.
Our efficiency ratio was 18.27% for the 2010 first quarter as
compared to 19.15% for the 2009 first quarter. The efficiency
ratio is calculated by dividing non-interest expense, by the sum of
net interest income and non-interest income. Our annualized
ratio of non-interest expense to average total assets for the first
quarter of 2010 was 0.44% as compared to 0.40% for the first
quarter of 2009.
Income tax expense amounted to $98.7
million for the first quarter of 2010 compared with
$83.6 million for the same quarter in
2009. Our effective tax rate for the first quarter of 2010
was 39.87% compared with 39.58% for the first quarter of 2009.
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 twenty-five
U.S. financial institutions by asset size and is the largest thrift
institution headquartered in New
Jersey. Hudson City Savings Bank currently operates a
total of 131 branch offices in the New
York metropolitan area.
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 Bancorp may turn out to be wrong.
They can be affected by inaccurate assumptions Hudson City Bancorp
might make or by known or unknown risks and uncertainties.
Consequently, no forward-looking statement can be guaranteed.
Hudson City Bancorp 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.
TABLES FOLLOW
Hudson City Bancorp, Inc. and
Subsidiary
Consolidated Statements of
Financial Condition
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2010
|
2009
|
|
|
(In thousands, except share and per
share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and due from banks
|
$
124,780
|
|
$
198,752
|
|
|
Federal funds sold and other overnight
deposits
|
350,318
|
|
362,449
|
|
|
Total cash and cash equivalents
|
475,098
|
|
561,201
|
|
|
|
|
|
|
|
|
|
Securities available for
sale:
|
|
|
|
|
|
Mortgage-backed
securities
|
12,662,490
|
|
11,116,531
|
|
|
Investment
securities
|
457,538
|
|
1,095,240
|
|
|
Securities held to
maturity:
|
|
|
|
|
|
Mortgage-backed
securities
|
9,110,956
|
|
9,963,554
|
|
|
Investment
securities
|
4,887,949
|
|
4,187,704
|
|
|
|
Total securities
|
27,118,933
|
|
26,363,029
|
|
|
|
|
|
|
|
|
|
Loans
|
32,090,987
|
|
31,779,921
|
|
|
Net deferred loan
costs
|
87,695
|
|
81,307
|
|
|
Allowance for loan
losses
|
(165,830)
|
|
(140,074)
|
|
|
|
Net loans
|
32,012,852
|
|
31,721,154
|
|
|
|
|
|
|
|
|
|
Federal Home Loan Bank of New York
stock
|
874,768
|
|
874,768
|
|
|
Foreclosed real estate, net
|
19,563
|
|
16,736
|
|
|
Accrued interest receivable
|
301,174
|
|
304,091
|
|
|
Banking premises and equipment,
net
|
70,647
|
|
70,116
|
|
|
Goodwill
|
152,109
|
|
152,109
|
|
|
Other assets
|
206,507
|
|
204,556
|
|
|
|
Total Assets
|
$
61,231,651
|
|
$
60,267,760
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Interest-bearing
|
$
24,813,775
|
|
$
23,992,007
|
|
|
Noninterest-bearing
|
575,025
|
|
586,041
|
|
|
|
Total deposits
|
25,388,800
|
|
24,578,048
|
|
|
|
|
|
|
|
|
|
Repurchase agreements
|
15,100,000
|
|
15,100,000
|
|
|
Federal Home Loan Bank of New York
advances
|
14,875,000
|
|
14,875,000
|
|
|
|
Total borrowed funds
|
29,975,000
|
|
29,975,000
|
|
|
|
|
|
|
|
|
|
Due to brokers
|
125,580
|
|
100,000
|
|
|
Accrued expenses and other
liabilities
|
346,194
|
|
275,560
|
|
|
|
Total liabilities
|
55,835,574
|
|
54,928,608
|
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value, 3,200,000,000 shares authorized;
741,466,555 shares issued; 526,620,063 shares outstanding at March
31, 2010 and 526,493,676 shares outstanding at December 31,
2009
|
7,415
|
|
7,415
|
|
|
Additional paid-in capital
|
4,689,151
|
|
4,683,414
|
|
|
Retained earnings
|
2,476,277
|
|
2,401,606
|
|
|
Treasury stock, at cost; 214,846,492
shares at March 31, 2010 and 214,972,879 shares at December 31,
2009
|
(1,726,563)
|
|
(1,727,579)
|
|
|
Unallocated common stock held by the
employee stock ownership plan
|
(208,692)
|
|
(210,237)
|
|
|
Accumulated other comprehensive
income, net of tax
|
158,489
|
|
184,533
|
|
|
|
Total shareholders’ equity
|
5,396,077
|
|
5,339,152
|
|
|
|
Total Liabilities and Shareholders’
Equity
|
$
61,231,651
|
|
$
60,267,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson City Bancorp, Inc. and
Subsidiary
Consolidated Statements of
Income
(Unaudited)
|
|
|
|
|
For the Three
Months
|
|
|
Ended March 31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
Interest and Dividend Income:
|
|
|
|
|
|
|
First mortgage loans
|
$
428,161
|
|
$
414,208
|
|
|
|
Consumer and other loans
|
4,759
|
|
5,990
|
|
|
|
Mortgage-backed securities held to
maturity
|
110,126
|
|
121,931
|
|
|
|
Mortgage-backed securities available for
sale
|
121,592
|
|
128,983
|
|
|
|
Investment securities held to maturity
|
47,064
|
|
2,358
|
|
|
|
Investment securities available for
sale
|
10,346
|
|
43,303
|
|
|
|
Dividends on Federal Home Loan Bank of New York
stock
|
12,373
|
|
6,373
|
|
|
|
Federal funds sold
|
449
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividend
income
|
734,870
|
|
723,322
|
|
|
|
|
|
|
|
|
|
|
Interest Expense:
|
|
|
|
|
|
|
Deposits
|
103,919
|
|
138,824
|
|
|
|
Borrowed funds
|
299,806
|
|
300,667
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
403,725
|
|
439,491
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
331,145
|
|
283,831
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan Losses
|
50,000
|
|
20,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan
losses
|
281,145
|
|
263,831
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
Service charges and other income
|
2,230
|
|
2,125
|
|
|
|
Gain on securities transactions, net
|
30,768
|
|
148
|
|
|
|
Total non-interest income
|
32,998
|
|
2,273
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
Compensation and employee benefits
|
34,162
|
|
32,731
|
|
|
|
Net occupancy expense
|
8,347
|
|
8,480
|
|
|
|
Federal deposit insurance assessment
|
12,627
|
|
2,616
|
|
|
|
Other expense
|
11,395
|
|
10,967
|
|
|
|
Total non-interest
expense
|
66,531
|
|
54,794
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax expense
|
247,612
|
|
211,310
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
98,727
|
|
83,647
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
148,885
|
|
$
127,663
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$
0.30
|
|
$
0.26
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
$
0.30
|
|
$
0.26
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common
Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
492,564,183
|
|
487,567,802
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
493,694,756
|
|
491,326,567
|
|
|
|
|
|
|
|
|
|
Hudson City Bancorp, Inc. and
Subsidiary
Consolidated Average Balance
Sheets
(Unaudited)
|
|
|
|
|
For the Three
Months Ended March 31,
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First mortgage loans, net
(1)
|
$31,496,413
|
|
$428,161
|
|
5.44
|
%
|
$29,346,715
|
|
$414,208
|
|
5.65
|
%
|
|
|
Consumer and other loans
|
358,637
|
|
4,759
|
|
5.31
|
|
402,059
|
|
5,990
|
|
5.96
|
|
|
|
Federal funds sold
|
789,310
|
|
449
|
|
0.23
|
|
146,751
|
|
176
|
|
0.49
|
|
|
|
Mortgage-backed securities at
amortized cost
|
20,261,865
|
|
231,718
|
|
4.57
|
|
19,313,880
|
|
250,914
|
|
5.20
|
|
|
|
Federal Home Loan Bank
stock
|
874,768
|
|
12,373
|
|
5.66
|
|
872,095
|
|
6,373
|
|
2.92
|
|
|
|
Investment securities, at
amortized cost
|
5,303,422
|
|
57,410
|
|
4.33
|
|
3,692,237
|
|
45,661
|
|
4.95
|
|
|
|
|
Total interest-earning
assets
|
59,084,415
|
|
734,870
|
|
4.98
|
|
53,773,737
|
|
723,322
|
|
5.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings assets
(4)
|
1,635,807
|
|
|
|
|
|
1,331,205
|
|
|
|
|
|
|
|
|
Total Assets
|
$60,720,222
|
|
|
|
|
|
$55,104,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts
|
$
796,816
|
|
1,466
|
|
0.75
|
|
$
718,720
|
|
1,348
|
|
0.76
|
|
|
|
Interest-bearing transaction
accounts
|
2,204,513
|
|
7,510
|
|
1.38
|
|
1,624,474
|
|
9,068
|
|
2.26
|
|
|
|
Money market accounts
|
5,171,810
|
|
16,730
|
|
1.31
|
|
2,918,741
|
|
16,705
|
|
2.32
|
|
|
|
Time deposits
|
16,238,606
|
|
78,213
|
|
1.95
|
|
13,602,195
|
|
111,703
|
|
3.33
|
|
|
|
|
Total interest-bearing
deposits
|
24,411,745
|
|
103,919
|
|
1.73
|
|
18,864,130
|
|
138,824
|
|
2.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase agreements
|
15,100,000
|
|
151,429
|
|
4.07
|
|
15,099,951
|
|
151,052
|
|
4.06
|
|
|
|
Federal Home Loan Bank of New
York advances
|
14,875,000
|
|
148,377
|
|
4.05
|
|
15,266,667
|
|
149,615
|
|
3.97
|
|
|
|
|
Total borrowed funds
|
29,975,000
|
|
299,806
|
|
4.06
|
|
30,366,618
|
|
300,667
|
|
4.02
|
|
|
|
|
Total
interest-bearing liabilities
|
54,386,745
|
|
403,725
|
|
3.01
|
|
49,230,748
|
|
439,491
|
|
3.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
572,030
|
|
|
|
|
|
563,360
|
|
|
|
|
|
|
|
Other noninterest-bearing
liabilities
|
330,127
|
|
|
|
|
|
310,286
|
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
902,157
|
|
|
|
|
|
873,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
55,288,902
|
|
|
|
|
|
50,104,394
|
|
|
|
|
|
|
|
Shareholders’ equity
|
5,431,320
|
|
|
|
|
|
5,000,548
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders’ Equity
|
$60,720,222
|
|
|
|
|
|
$55,104,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/net interest
rate spread (2)
|
|
|
$331,145
|
|
1.97
|
|
|
|
$283,831
|
|
1.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets/net
interest margin (3)
|
$
4,697,670
|
|
|
|
2.20
|
%
|
$
4,542,989
|
|
|
|
2.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets
to interest-bearing liabilities
|
|
|
|
|
1.09
|
x
|
|
|
|
|
1.09
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amount
includes deferred loan costs and non-performing loans and is net of
the allowance for loan losses.
(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) Includes
the average balance of principal receivable related to FHLMC
mortgage-backed securities of $365.5 million and $121.7 million for
the quarters ended March 31, 2010 and 2009,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson City Bancorp, Inc. and
Subsidiary
Book Value
Calculations
|
|
|
|
March 31, 2010
|
|
|
|
|
|
|
(In thousands, except share
and per share amounts)
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
$
5,396,077
|
|
|
Goodwill and other intangible assets
|
|
(157,905)
|
|
|
Tangible Shareholders' equity
|
|
$
5,238,172
|
|
|
|
|
|
|
|
Book Value Share Computation:
|
|
|
|
|
Issued
|
|
741,466,555
|
|
|
Treasury shares
|
|
(214,846,492)
|
|
|
Shares
outstanding
|
|
526,620,063
|
|
|
Unallocated ESOP shares
|
|
(33,435,918)
|
|
|
Unvested RRP shares
|
|
(494,525)
|
|
|
Shares in trust
|
|
(122,865)
|
|
|
Book value shares
|
|
492,566,755
|
|
|
|
|
|
|
|
Book value per share
|
|
$
10.96
|
|
|
|
|
|
|
|
Tangible book value per share
|
|
$
10.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson City Bancorp,
Inc.
Other Financial
Data
|
|
Securities Portfolio at March 31,
2010:
|
|
|
Amortized
|
|
Estimated
|
|
Unrealized
|
|
|
Cost
|
|
Fair
Value
|
|
Gain/(Loss)
|
|
|
(dollars in
thousands)
|
|
Held to Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities:
|
|
|
|
|
|
|
FHLMC
|
$
3,795,232
|
|
$
3,982,607
|
|
$
187,375
|
|
FNMA
|
2,329,043
|
|
2,428,372
|
|
99,329
|
|
FHLMC and FNMA
CMO's
|
2,178,794
|
|
2,210,224
|
|
31,430
|
|
GNMA
|
108,675
|
|
111,776
|
|
3,101
|
|
Principal receivable from
FHLMC
|
699,212
|
|
699,212
|
|
-
|
|
Total
mortgage-backed securities
|
9,110,956
|
|
9,432,191
|
|
321,235
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States GSE
debt
|
4,887,844
|
|
4,856,329
|
|
(31,515)
|
|
Municipal
bonds
|
105
|
|
105
|
|
-
|
|
Total investment
securities
|
4,887,949
|
|
4,856,434
|
|
(31,515)
|
|
|
|
|
|
|
|
|
Total held to maturity
|
$
13,998,905
|
|
$
14,288,625
|
|
$
289,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities:
|
|
|
|
|
|
|
FHLMC
|
$
4,341,991
|
|
$
4,532,066
|
|
$
190,075
|
|
FNMA
|
4,568,543
|
|
4,663,316
|
|
94,773
|
|
FHLMC and FNMA
CMO's
|
978,880
|
|
978,347
|
|
(533)
|
|
GNMA
|
1,871,720
|
|
1,894,752
|
|
23,032
|
|
Principal receivable from
FHLMC
|
594,009
|
|
594,009
|
|
-
|
|
Total
mortgage-backed securities
|
12,355,143
|
|
12,662,490
|
|
307,347
|
|
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States GSE
debt
|
454,708
|
|
450,403
|
|
(4,305)
|
|
Equity
securities
|
6,767
|
|
7,135
|
|
368
|
|
Total investment
securities
|
461,475
|
|
457,538
|
|
(3,937)
|
|
|
|
|
|
|
|
|
Total available for
sale
|
$
12,816,618
|
|
$
13,120,028
|
|
$
303,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson City Bancorp,
Inc.
Other Financial
Data
|
|
Loan Data at March 31, 2010:
|
|
|
|
Non-Performing
Loans
|
|
Total
Loans
|
|
|
|
Loan
|
|
|
|
Percent
of
|
|
Loan
|
|
|
Percent
of
|
|
|
|
Balance
|
|
Number
|
|
Total
Loans
|
|
Balance
|
|
Number
|
Total
Loans
|
|
|
|
(dollars in
thousands)
|
|
First Mortgage Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
One- to four- family
|
|
$
687,285
|
|
1,727
|
|
2.14%
|
|
$
31,161,679
|
|
74,205
|
97.10%
|
|
FHA/VA
|
|
40,990
|
|
150
|
|
0.13%
|
|
282,723
|
|
1,142
|
0.88%
|
|
PMI
|
|
4,332
|
|
16
|
|
0.01%
|
|
240,075
|
|
746
|
0.75%
|
|
Construction
|
|
6,344
|
|
4
|
|
0.02%
|
|
12,090
|
|
8
|
0.04%
|
|
Commercial
|
|
3,103
|
|
3
|
|
0.01%
|
|
54,001
|
|
97
|
0.17%
|
|
Total mortgage
loans
|
|
742,054
|
|
1,900
|
|
2.31%
|
|
31,750,568
|
|
76,198
|
98.94%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity loans
|
|
2,342
|
|
25
|
|
0.01%
|
|
320,427
|
|
8,330
|
1.00%
|
|
Other loans
|
|
476
|
|
9
|
|
0.00%
|
|
19,992
|
|
2,335
|
0.06%
|
|
Total
|
|
$
744,872
|
|
1,934
|
|
2.32%
|
|
$
32,090,987
|
|
86,863
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Charge-offs amounted to $24.2
million for the first quarter of 2010, consisting of 297
loans. These charge-offs include $22.6
million that relate to loans that are still in the loan
portfolio at March 31, 2010 and are
working through the foreclosure process.
- Updated valuations are received on or before the time a loan
becomes 180 days past due. If necessary, we charge-off an
amount to reduce the loan's carrying value to the updated valuation
less estimated selling costs. Our policy is that we receive
an updated valuation for these loans annually.
- The average loan-to-value ratio, using appraised values at time
of origination, of our non-performing one- to four-family mortgage
loans and total one- to four-family mortgage loans was 71.8% and
61.1%, respectively at March 31,
2010.
- Based on the valuation indices, house prices have declined in
the New York metropolitan area,
where 64.6% of our non-performing loans were located at
March 31, 2010, by approximately
21.0% from the peak of the market in 2006 through January 2010 and by 29.1% nationwide during that
period. From July 2009 through
January 2010, the house price indices
decreased by 2.0% in the New York
metropolitan area and increased 1.1% nationwide.
- Our quantitative analysis of the allowance for loan losses
considers the results of the reappraisal process as well as the
results of our foreclosed property transactions.
- Our qualitative analysis of the allowance for loan losses
includes a further evaluation of economic factors, such as trends
in the unemployment rate, as well as ratio analysis to evaluate the
overall measurement of the allowance for loan losses. This
analysis includes a review of delinquency ratios, house price
indices, net charge-off ratios and the ratio of the allowance for
loan losses to both non-performing loans and total loans.
Foreclosed real estate at
March 31, 2010:
|
|
|
|
|
Carrying
|
|
Number
Under
|
|
|
Number
|
|
Value
|
|
Contract of
Sale
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
Foreclosed real estate
|
53
|
|
$
19,563
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- During the first three months of 2010, we sold 8 foreclosed
properties. It is currently taking up to 30 months to
foreclose on a loan once it becomes non-performing.
Hudson City
Bancorp, Inc. and Subsidiary
|
|
Other Financial
Data
|
|
(Unaudited)
|
|
|
At or for the
Quarter Ended
|
|
|
March 31,
2010
|
|
Dec. 31,
2009
|
|
Sept. 30,
2009
|
|
June 30,
2009
|
|
March 31,
2009
|
|
|
(Dollars in
thousands, except per share data)
|
|
Net interest income
|
$
331,145
|
|
$
331,793
|
|
$
325,457
|
|
$
302,397
|
|
$
283,831
|
|
Provision for loan losses
|
50,000
|
|
45,000
|
|
40,000
|
|
32,500
|
|
20,000
|
|
Non-interest income
|
32,998
|
|
2,192
|
|
2,513
|
|
26,606
|
|
2,273
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
34,162
|
|
33,905
|
|
34,043
|
|
36,392
|
|
32,731
|
|
Other non-interest
expense
|
32,369
|
|
29,030
|
|
28,877
|
|
48,555
|
|
22,063
|
|
Total non-interest expense
|
66,531
|
|
62,935
|
|
62,920
|
|
84,947
|
|
54,794
|
|
Income before income tax
expense
|
247,612
|
|
226,050
|
|
225,050
|
|
211,556
|
|
211,310
|
|
Income tax expense
|
98,727
|
|
89,474
|
|
89,964
|
|
83,637
|
|
83,647
|
|
Net income
|
$
148,885
|
|
$
136,576
|
|
$
135,086
|
|
$
127,919
|
|
$
127,663
|
|
Total assets
|
$
61,231,651
|
|
$
60,267,760
|
|
$
58,884,535
|
|
$
57,406,338
|
|
$
56,569,758
|
|
Loans, net
|
32,012,852
|
|
31,721,154
|
|
31,088,146
|
|
30,718,887
|
|
30,110,130
|
|
Mortgage-backed securities
|
|
|
|
|
|
|
|
|
|
|
Available for sale
|
12,662,490
|
|
11,116,531
|
|
9,550,806
|
|
9,796,644
|
|
11,149,867
|
|
Held to maturity
|
9,110,956
|
|
9,963,554
|
|
10,751,866
|
|
10,322,782
|
|
9,537,148
|
|
Other securities
|
|
|
|
|
|
|
|
|
|
|
Available for sale
|
457,538
|
|
1,095,240
|
|
2,117,664
|
|
2,209,470
|
|
3,532,186
|
|
Held to maturity
|
4,887,949
|
|
4,187,704
|
|
3,238,044
|
|
2,289,869
|
|
450,140
|
|
Deposits
|
25,388,800
|
|
24,578,048
|
|
23,113,949
|
|
21,692,265
|
|
20,435,916
|
|
Borrowings
|
29,975,000
|
|
29,975,000
|
|
30,025,000
|
|
30,025,000
|
|
30,275,000
|
|
Shareholders’ equity
|
5,396,077
|
|
5,339,152
|
|
5,270,181
|
|
5,143,265
|
|
5,052,798
|
|
Performance Data:
|
|
|
|
|
|
|
|
|
|
|
Return
on average assets (1)
|
0.98%
|
|
0.92%
|
|
0.93%
|
|
0.91%
|
|
0.93%
|
|
Return
on average equity (1)
|
10.96%
|
|
10.21%
|
|
10.34%
|
|
9.98%
|
|
10.21%
|
|
Net
interest rate spread (1)
|
1.97%
|
|
2.02%
|
|
2.02%
|
|
1.87%
|
|
1.75%
|
|
Net
interest margin (1)
|
2.20%
|
|
2.30%
|
|
2.30%
|
|
2.17%
|
|
2.06%
|
|
Non-interest expense to average assets
(1) (4)
|
0.44%
|
|
0.42%
|
|
0.43%
|
|
0.49%
|
|
0.40%
|
|
Compensation and benefits to total
revenue (5)
|
9.38%
|
|
10.15%
|
|
10.38%
|
|
11.06%
|
|
11.44%
|
|
Efficiency ratio (2)
|
18.27%
|
|
18.84%
|
|
19.18%
|
|
25.82%
|
|
19.15%
|
|
Dividend payout ratio
|
50.00%
|
|
53.57%
|
|
53.57%
|
|
57.69%
|
|
53.85%
|
|
Per
Common Share Data:
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
$0.30
|
|
$0.28
|
|
$0.28
|
|
$0.26
|
|
$0.26
|
|
Diluted earnings per common
share
|
$0.30
|
|
$0.28
|
|
$0.27
|
|
$0.26
|
|
$0.26
|
|
Book
value per share (3)
|
$10.96
|
|
$10.85
|
|
$10.75
|
|
$10.54
|
|
$10.40
|
|
Tangible book value per share
(3)
|
$10.63
|
|
$10.53
|
|
$10.43
|
|
$10.21
|
|
$10.07
|
|
Dividends per share
|
$0.15
|
|
$0.15
|
|
$0.15
|
|
$0.15
|
|
$0.14
|
|
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
Equity to total assets
(consolidated)
|
8.81%
|
|
8.86%
|
|
8.95%
|
|
8.96%
|
|
8.93%
|
|
Tier 1 leverage capital
(Bank)
|
7.60%
|
|
7.59%
|
|
7.66%
|
|
7.73%
|
|
7.79%
|
|
Total risk-based capital
(Bank)
|
21.24%
|
|
21.02%
|
|
21.27%
|
|
21.09%
|
|
21.20%
|
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
1,500
|
|
1,482
|
|
1,483
|
|
1,458
|
|
1,458
|
|
Number of branch offices
|
131
|
|
131
|
|
131
|
|
131
|
|
129
|
|
Asset Quality Data:
|
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans
|
$
744,872
|
|
$
627,695
|
|
$
517,585
|
|
$
430,907
|
|
$
320,158
|
|
Number
of non-performing loans
|
1,934
|
|
1,636
|
|
1,315
|
|
1,088
|
|
826
|
|
Total
number of loans
|
86,863
|
|
86,433
|
|
85,362
|
|
84,487
|
|
83,982
|
|
Total
non-performing assets
|
$
764,435
|
|
$
644,431
|
|
$
530,362
|
|
$
442,705
|
|
$
331,784
|
|
Non-performing loans to total
loans
|
2.32%
|
|
1.98%
|
|
1.66%
|
|
1.40%
|
|
1.06%
|
|
Non-performing assets to total
assets
|
1.25%
|
|
1.07%
|
|
0.90%
|
|
0.77%
|
|
0.59%
|
|
Allowance for loan losses
|
$
165,830
|
|
$
140,074
|
|
$
114,833
|
|
$
88,053
|
|
$
65,121
|
|
Allowance for loan losses to
non-performing loans
|
22.26%
|
|
22.32%
|
|
22.19%
|
|
20.43%
|
|
20.34%
|
|
Allowance for loan
losses to total loans
|
0.52%
|
|
0.44%
|
|
0.37%
|
|
0.29%
|
|
0.22%
|
|
Provision for loan
losses
|
$
50,000
|
|
$
45,000
|
|
$
40,000
|
|
$
32,500
|
|
$
20,000
|
|
Net
charge-offs
|
$
24,245
|
|
$
19,758
|
|
$
13,220
|
|
$
9,569
|
|
$
4,675
|
|
Write-downs and
net losses on foreclosed real estate
|
$
1,372
|
|
$
325
|
|
$
481
|
|
$
399
|
|
$
1,162
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Ratios are
annualized.
(2) Computed by
dividing non-interest expense by the sum of net interest income and
non-interest income. For the second quarter of 2009, the
efficiency ratio includes the FDIC special assessment of $21.1
million and net securities gains of $24.0 million. For the first
quarter of 2010, the efficiency ration includes net securities
gains of $30.8 million.
(3) Computed based
on total common shares issued, less treasury shares, unallocated
ESOP shares, unvested stock awards and shares held in trust.
Tangible book value excludes goodwill and other intangible
assets.
(4) Computed by
dividing non-interest expense by average assets.
(5) Computed by
dividing compensation and benefits by the sum of net interest
income and non-interest income.
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Hudson City Bancorp, Inc.