(In "=Hudson City Bancorp 3Q Profit Falls 7.8% As Provisions
Rise" at 8:32 a.m. EDT, the direction of earnings was incorrect in
the first paragraph. A corrected version follows.)
Hudson City Bancorp Inc.'s (HCBK) third-quarter earnings fell
7.8% as the New Jersey regional bank reported higher loan-loss
provisions and low interest rates impacted performance.
The company saw signs of real-estate stabilization in the prior
quarter, though Chairman and Chief Executive Ronald E. Hermance Jr.
on Wednesday said the lender's nonperforming loans continued to
increase, though at a slower pace in the last two quarters.
Historically low interest rates also weighed on performance in the
latest quarter.
The company avoided the worst of the defaults seen last year
thanks to sticking with its core business of writing conservative
loans to borrowers mostly in the New York metropolitan area.
Hudson City reported a profit of $124.6 million, or 25 cents a
share, down from $135.1 million, or 27 cents a share, a year
earlier. Revenue decreased 1.6% to $324.2 million, as net interest
income fell 11%.
Analysts polled by Thomson Reuters most recently forecast
earnings of 26 cents on revenue of $314 million.
Loan-loss provisions rose to $50 million from $40 million a year
earlier and were flat from the second quarter. Net charge-offs, or
loans banks don't expect to collect increased to $26.7 million from
$13.2 million and $22.8 million, respectively. Nonperforming loans,
or loans expected to go bad, rose to 2.64% from 1.66% and
2.46%.
Shares closed Tuesday at $11.93 and were inactive premarket. The
stock is down 13% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com