PARAMUS, N.J., July 25, 2012 /PRNewswire/ -- Hudson City
Bancorp, Inc. (NASDAQ: HCBK) (the "Company"), the holding company
for Hudson City Savings Bank (the "Bank"), reported today net
income of $72.3 million for the
quarter ended June 30, 2012 as
compared to net income of $96.0
million for the quarter ended June
30, 2011. Diluted earnings per share amounted to
$0.15 for the second quarter of 2012
as compared to diluted earnings per share of $0.19 for the second quarter of 2011. For
the six months ended June 30, 2012,
the Company reported net income of $145.3
million as compared to a net loss of $459.7 million for the same period in 2011.
Diluted earnings per share was $0.29
for the six months ended June 30,
2012 as compared to a net loss per share of $0.93 for the same period in 2011. The net
loss for the first six months of 2011 was the result of a
restructuring of the Company's balance sheet in the first quarter
of 2011.
The Company also reported today that the Board of Directors
declared a quarterly cash dividend of $0.08 per share payable on August 29, 2012 to shareholders of record on
August 8, 2012.
Financial highlights for the second quarter of 2012 are as
follows:
- Our net interest rate spread and net interest margin were 1.91%
and 2.12%, respectively, for the second quarter of 2012 as compared
to 1.95% and 2.15%, respectively, for the linked first quarter of
2012 and 1.94% and 2.14%, respectively, for the second quarter of
2011.
- The provision for loan losses amounted to $25.0 million for both the first and second
quarters of 2012, as compared to $30.0
million for the second quarter of 2011. Net
charge-offs amounted to $17.8 million
for the second quarter of 2012 as compared to $18.1 million for the linked first quarter of
2012 and $23.0 million for the second
quarter of 2011.
- Total assets decreased 3.9% to $43.59
billion at June 30, 2012 from
$45.36 billion at December 31, 2011.
- Borrowings decreased $1.65
billion to $13.43 billion at
June 30, 2012 from $15.08 billion at December
31, 2011.
- The Bank's Tier 1 leverage capital increased to 9.44% at
June 30, 2012 as compared to 8.83% at
December 31, 2011.
- Non-interest expense decreased $2.2
million, or 2.6%, to $83.6
million for the quarter ended June
30, 2012.
Denis J. Salamone, the Company's
Acting Chairman and Chief Executive Officer commented, "Over the
past several quarters, we have discussed the challenges facing our
traditional residential portfolio lending model. The
extraordinarily low market interest rates combined with the GSEs
participation in the mortgage market persist and make it difficult
for us to profitably grow our business in the same manner as we
have in the past. It is apparent that these market conditions
are likely to continue for the foreseeable future.
Accordingly, we have been developing a variety of strategies to
help us adapt to the new environment in which we operate."
Mr. Salamone continued, "One of those strategies is to extend
our core mortgage lending business by diversifying our loan
production channels and revenue sources. We have been a
residential mortgage lender since our inception in 1868.
Historically, we have kept all of our loans on our balance
sheet. While we will continue to offer loans to keep in our
portfolio, we will also begin to offer residential mortgage loans
that are eligible for sale in the secondary market. We may
either retain or release servicing on these loans. This will enable
us to offer rates that are typically lower than we can offer for a
portfolio product and capture more customer
relationships."
Mr. Salamone further commented, "We will also enter the
commercial real estate market in our existing market
footprint. Our retail branch network and residential mortgage
relationships provides us with a valuable opportunity to offer
these products. Initially, we will participate in syndicated
commercial real estate and multi-family mortgage loan deals as we
build capacity to grow organically in this market through
originations. These types of loans are typically shorter-term
than our residential mortgages and therefore help to balance our
risk profile. In addition, we can offer commercial real
estate customers deposit products that we believe will strengthen
relationships and increase the amount and types of deposit accounts
on our balance sheet."
Mr. Salamone concluded, "The initiatives to originate to sell
residential loans and enter the commercial real estate market are a
natural extension of our business and we expect to implement such
initiatives in 2013. The new products and services should
provide additional revenues and a more diversified customer base
and balance sheet. While our primary business will always be
residential lending, in order to move our Company forward in the
"new normal" we must take advantage of the opportunities in our
exceptional market areas and leverage our well-known and respected
franchise to reach our full potential. We will continue to
examine and evaluate additional strategies to further diversify our
business and build shareholder value."
Statement of Financial Condition Summary
Total assets decreased $1.77
billion, or 3.9%, to $43.59
billion at June 30, 2012 from
$45.36 billion at December 31, 2011. The decrease in total assets
reflected a $1.16 billion decrease in
net loans, a $419.1 million decrease
in total mortgage-backed securities, a $97.8
million decrease in FHLB stock and an $89.8 million decrease in investment
securities.
Net loans amounted to $27.98
billion at June 30, 2012 as
compared to $29.14 billion at
December 31, 2011. During the
first six months of 2012, our loan production amounted to
$2.53 billion as compared to
$2.99 billion for the same period in
2011. Loan production was offset by principal repayments of
$3.59 billion in the first six months
of 2012, as compared to principal repayments of $3.46 billion for the first six months of
2011. Loan production declined during the first six months of
2012 due to a decline in loan originations which reflects our low
appetite for adding long-term fixed rate loans in the current low
market interest rate environment. The decrease in net
loans was also due to continued elevated levels of refinancing
activity caused by low market interest rates.
Total mortgage-backed securities decreased $419.1 million to $12.87
billion at June 30, 2012 from
$13.29 billion at December 31, 2011. The decrease in
mortgage-backed securities reflected repayments of $1.74 billion, partially offset by purchases of
$1.32 billion of mortgage-backed
securities issued by government-sponsored entities ("GSEs").
Total liabilities decreased $1.87
billion, or 4.6%, to $38.93
billion at June 30, 2012 from
$40.80 billion at December 31, 2011. The decrease in total
liabilities primarily reflected a $1.65
billion decrease in borrowed funds and a decrease in total
deposits of $863.2 million.
Borrowings amounted to $13.43
billion at June 30, 2012 as
compared to $15.08 billion at
December 31, 2011. The decrease
in borrowed funds consists of the maturity of short-term borrowings
during the first six months of 2012. These decreases were partially
offset by an increase in due to brokers of $629.1 million. Due to brokers at June 30, 2012 represents securities purchased in
the second quarter of 2012 with settlement dates in the third
quarter of 2012.
Total shareholders' equity increased $104.0 million to $4.66
billion at June 30, 2012 from
$4.56 billion at December 31, 2011. The increase was primarily due
to net income of $145.3 million for
the six months ended June 30, 2012
and an increase in accumulated other comprehensive income of
$26.6 million. The increase was
partially offset by cash dividends paid to common shareholders of
$79.4 million. At June 30, 2012, our shareholders' equity to asset
ratio was 10.70% and our tangible book value per share was
$9.08.
Accumulated other comprehensive income amounted to $66.3 million at June 30,
2012 and included a $114.2
million after-tax net unrealized gain on securities
available for sale ($193.1 million
pre-tax), partially offset by a $47.9
million after-tax accumulated other comprehensive loss
related to the funded status of our employee benefit plans.
The accumulated other comprehensive income of $39.7 million at December
31, 2011 included an $89.3
million after-tax net unrealized gain on securities
available for sale ($150.9 million
pre-tax), partially offset by a $49.6
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 the economy has
been expanding moderately during the first six months of 2012.
However, growth in employment has slowed in recent months, and the
unemployment rate remains at elevated levels. The FOMC noted
that business fixed investment has continued to expand and
household spending appears to be rising at a slower pace than
earlier in the year while the housing sector remains depressed. The
national unemployment rate was 8.2% during June 2012 representing a slight decline from 8.5%
in December 2011. The FOMC decided to maintain the overnight
lending rate at zero to 0.25% during the second quarter of
2012. As a result, market interest rates have remained at low
levels, and consequently, the yields on our mortgage-related assets
have decreased during the first six months of 2012.
In addition, the Federal Reserve program "Operation Twist",
which was set to expire at the end of June, has been extended until
the end of the year. This program consists of the purchase of
Treasury securities with remaining maturities of 6 to 30 years
funded by the sale of an equal amount of Treasury securities with
remaining maturities of 3 years or less. The extension of
this program will continue to put downward pressure on longer-term
interest rates.
Net interest income decreased $48.6
million, or 17.8%, to $224.3
million for the second quarter of 2012 as compared to
$272.9 million for the second quarter
of 2011. Our interest rate spread decreased slightly to 1.91%
for the second quarter of 2012 as compared to 1.95% for the first
quarter of 2012 and 1.94% for the second quarter of 2011. Our
net interest margin was 2.12% for the second quarter of 2012 as
compared to 2.15% for the linked first quarter of 2012 and 2.14%
for the second quarter of 2011. The decrease in net interest
income also reflects the overall decrease in interest-earning
assets and interest-bearing liabilities.
Net interest income decreased $70.9
million, or 13.4%, to $458.4
million for the first six months of 2012 as compared to
$529.3 million for the first six
months of 2011. Our interest rate spread increased 23 basis
points to 1.94% for the six months ended June 30, 2012 as compared to 1.71% for the six
months ended June 30, 2011. Our
net interest margin increased 21 basis points to 2.13% as compared
to 1.92% for the those same respective periods. The increase
in our interest rate spread and net interest margin for the first
six months of 2012 is primarily due to the effects of the
extinguishment of $4.3 billion of
borrowings during the fourth quarter of 2011 as well as a
restructuring of the Company's balance sheet in the first quarter
of 2011.
The restructuring of the Company's balance sheet in the first
quarter of 2011 resulted in the extinguishment of $12.5 billion of structured putable borrowings
with an average cost of 3.56%. The extinguishment of
borrowings was funded by the sale of $8.66
billion of securities and new short-term borrowings of
$5.0 billion. The balance sheet
restructuring (the "Restructuring Transaction") reduced after-tax
earnings by $649.3 million. In
addition to the Restructuring Transaction, we extinguished
$4.3 billion of structured borrowings
during the fourth quarter of 2011 using cash proceeds from the
calls of investment securities and repayments on mortgage-related
assets (the Restructuring Transaction and the extinguishment of
debt in the fourth quarter of 2011 are collectively referred to as
the "Transactions").
Total interest and dividend income for the second quarter of
2012 decreased $122.0 million, or
22.1%, to $430.7 million from
$552.7 million for the second quarter
of 2011. The decrease in total interest and dividend income was
primarily due to a decrease in the average balance of total
interest-earning assets of $8.67
billion, or 17.1%, to $42.10
billion for the second quarter of 2012 as compared to
$50.77 billion for the second quarter
of 2011. The decrease in total interest and dividend income
was also due to a decrease of 26 basis points in the annualized
weighted-average yield on total interest-earning assets to 4.09%
for the second quarter of 2012 from 4.35% for the second quarter in
2011. The decrease in the average balance of total
interest-earning assets was due primarily to the effects of the
debt extinguishments in the fourth quarter of 2011.
Total interest and dividend income for the six months ended
June 30, 2012 decreased $290.8 million, or 24.9%, to $879.5 million from $1.17
billion for the six months ended June
30, 2011. The decrease in total interest and dividend income
was primarily due to a decrease in the average balance of total
interest-earning assets of $11.79
billion, or 21.6%, to $42.73
billion for the first six months of 2012 from $54.52 billion for the same period in 2011.
The decrease in total interest and dividend income was also due to
a decrease of 17 basis points in the annualized weighted-average
yield on total interest-earning assets to 4.12% for the six months
ended June 30, 2012 from 4.29% for
the same period in 2011. The decrease in the average balance
of total interest-earning assets was due primarily to the effects
of the Transactions.
Interest on first mortgage loans decreased $44.4 million, or 11.7%, to $336.0 million for the second quarter of 2012 as
compared to $380.4 million for the
second quarter of 2011. This was primarily due to a
$1.89 billion decrease in the average
balance of first mortgage loans to $27.96
billion for the second quarter of 2012 from $29.85 billion for the same quarter in 2011.
The decrease in interest income on mortgage loans was also
due to a 29 basis point decrease in the weighted-average yield to
4.81% for the second quarter of 2012 from 5.10% for the second
quarter of 2011.
For the six months ended June 30,
2012, interest on first mortgage loans decreased
$84.5 million, or 11.1%, to
$678.8 million as compared to
$763.3 million for the six months
ended June 30, 2011. This was
primarily due to a 29 basis point decrease in the weighted-average
yield to 4.81% for the six months ended June
30, 2012 from 5.10% for the six months ended June 30, 2011. The decrease in interest
income on mortgage loans was also due to a$1.70 billion decrease in the average balance of
first mortgage loans to $28.25
billion for the six months ended June
30, 2012 from $29.95 billion
for the six months ended June 30,
2011.
The decreases in the average yields earned during the three and
six month periods ended June 30, 2012
were due to lower market interest rates on mortgage products and
also due to the continued mortgage refinancing activity.
Refinancing activity, which resulted in continued elevated
levels of loan repayments, also caused the decreases in average
balance of our first mortgage loans to decline for those same
periods.
Interest on mortgage-backed securities decreased $42.5 million to $82.7
million for the second quarter of 2012 from $125.2 million for the second quarter of
2011. This decrease was due primarily to a $3.16 billion decrease in the average balance of
mortgage-backed securities to $12.27
billion during the second quarter of 2012 from $15.43 billion for the second quarter of 2011.
The decrease in the average balance was due primarily to principal
repayments. The decrease in interest on mortgage-backed
securities was also due to a 55 basis point decrease in the
weighted-average yield to 2.70% for the second quarter of 2012 from
3.25% for the second quarter of 2011. The decrease in the
weighted-average yield is a result of principal repayments on
securities that have higher yields than the existing portfolio as
well as the re-pricing of variable rate mortgage-backed securities
in this continued low interest rate environment.
Interest on mortgage-backed securities decreased $135.2 million to $173.3
million for the six months ended June
30, 2012 as compared to $308.5
million for the six months ended June
30, 2011. This decrease was due primarily to a
$5.95 billion decrease in the average
balance of mortgage-backed securities to $12.51 billion during the first six months of
2012 from $18.46 billion for the same
period in 2011. The decrease in interest on mortgage-backed
securities was also due to a 57 basis point decrease in the
weighted-average yield to 2.77% for the first six months of 2012
from 3.34% for the first six months of 2011. The decrease in
the average balance of mortgage-backed securities was due primarily
to the effects of the Restructuring Transaction. The decrease in
the weighted-average yield is a result of principal repayments on
securities that have higher yields than the existing portfolio as
well as the re-pricing of variable rate mortgage-backed securities
in this continued low interest rate environment.
Interest on investment securities decreased $30.0 million to $2.8
million for the second quarter of 2012 as compared to
$32.8 million for the second quarter
of 2011. This decrease was due primarily to a $3.51 billion decrease in the average balance of
investment securities to $413.9
million for the second quarter of 2012 from $3.92 billion for the second quarter of
2011. In addition, the average yield of investment securities
decreased 68 basis points to 2.66% for the second quarter of 2012
from 3.34% for the second quarter of 2011. The decrease in
the average balance is due primarily to calls of $3.4 billion of investment securities during
2011.
For the six months ended June 30,
2012, interest on investment securities decreased
$60.7 million to $5.7 million as compared to $66.4 million for the six months ended
June 30, 2011. This decrease
was due primarily to a $3.55 billion
decrease in the average balance of investment securities to
$408.2 million for the first six
months of 2012 from $3.96 billion for
the first six months of 2011. The decrease in the average
balance is due primarily to calls of $3.4
billion of investment securities during 2011. In
addition, the average yield of investment securities decreased 54
basis points to 2.81% for the first six months of 2012 from 3.35%
for the same period in 2011. The decrease in the average
yield earned reflects current market interest rates.
Dividends on Federal Home Loan Bank of New York ("FHLB") stock decreased $4.1 million, or 42.7%, to $5.5 million for the second quarter of 2012 from
$9.6 million for the second quarter
of 2011. This decrease was due primarily to a $353.7 million decrease in the average balance of
FHLB stock to $434.7 million for the
second quarter of 2012 from $788.4
million for the second quarter of 2011. The effect of
the decrease was partially offset by a 20 basis point increase in
the average dividend yield earned to 5.09% for the second quarter
of 2012 as compared to 4.89% for the second quarter of 2011.
The decrease in the average balance of FHLB stock was primarily due
to mandatory redemptions of stock due to a decrease in the amount
of borrowings outstanding with the FHLB.
Dividends on FHLB stock decreased $8.4
million, or 37.5%, to $14.0
million for the six months ended June
30, 2012 as compared to $22.4
million for the comparable period in 2011. The
decrease was primarily due to a $363.5
million decrease in the average balance of FHLB stock to
$464.8 million for the first six
months of 2012 as compared to $828.3
million for the same period in 2011. The effect of the
decrease was partially offset by a 62 basis point increase in the
average dividend yield earned to 6.04% as compared to 5.42% for the
first six months of 2011.
Interest on Federal funds sold amounted to $438,000 for the second quarter of 2012 as
compared to $707,000 for the second
quarter of 2011. The average balance of Federal funds sold
amounted to $740.5 million for the
second quarter of 2012 as compared to $480.4
million for the second quarter of 2011. The yield
earned on Federal funds sold was 0.24% for the 2012 second quarter
and 0.29% for the 2011 second quarter.
Interest on Federal funds sold amounted to $1.0 million for the six months ended
June 30, 2012 as compared to
$1.4 million for the first six months
of 2011. The average balance of Federal funds sold amounted
to $821.9 million for the first six
months of 2012 as compared to $1.01
billion for the same period in 2011. The yield earned
on Federal funds sold was 0.25% for the six months ended
June 30, 2012 and 0.28% for the six
months ended June 30, 2011. The
decrease in the average balance of Federal funds sold is primarily
a result of the timing of the debt extinguishments and the proceeds
from securities sales and new borrowings in the
Transactions.
Total interest expense for the quarter ended June 30, 2012 decreased $73.4 million, or 26.2%, to $206.4 million from $279.8
million for the quarter ended June
30, 2011. This decrease was primarily due to an
$8.49 billion, or 18.2%, decrease in
the average balance of total interest-bearing liabilities to
$38.08 billion for the quarter ended
June 30, 2012 compared with
$46.57 billion for the second quarter
of 2011. The decrease was also due to a 23 basis point decrease in
the weighted-average cost of total interest-bearing liabilities to
2.18% for the quarter ended June 30,
2012 compared with 2.41% for the quarter ended June 30, 2011. The decrease in the average
balance of total interest-bearing liabilities was due primarily to
the effects of the debt extinguishments in the fourth quarter of
2011 as well as $7.70 billion of
borrowings that matured during the second half of 2011 and the
first six months of 2012.
For the six months ended June 30,
2012 total interest expense decreased $219.8 million, or 34.3%, to $421.1 million from $640.9
million for the six months ended June
30, 2011. This decrease was primarily due to an
$11.23 billion, or 22.4%, decrease in
the average balance of total interest-bearing liabilities to
$38.81 billion for the six months
ended June 30, 2012 compared with
$50.04 billion for the six months
ended June 30, 2011. The decrease was
also due to a 40 basis point decrease in the weighted-average cost
of total interest-bearing liabilities to 2.18% for the six months
ended June 30, 2012 compared with
2.58% for the six months ended June
30, 2011. The decrease in the average balance of total
interest-bearing liabilities was due primarily to the reduction of
total borrowings as part of the Transactions.
Interest expense on deposits decreased $22.8 million, or 27.0%, to $61.6 million for the second quarter of 2012 from
$84.4 million for the second quarter
of 2011. This decrease is due primarily to a decrease in the
average cost of interest-bearing deposits of 34 basis points to
1.02% for the second quarter of 2012 from 1.36% for the second
quarter of 2011. The decrease is also due to a $758.2 million decrease in the average balance of
interest-bearing deposits to $24.21
billion during the second quarter of 2012 from $24.97 billion for the second quarter of
2011.
For the six months ended June 30,
2012, interest expense on deposits decreased $39.2 million, or 23.2%, to $129.5 million from $168.7
million for the six months ended June
30, 2011. This decrease is due primarily to a decrease
in the average cost of interest-bearing deposits of 31 basis points
to 1.06% for the first six months of 2012 from 1.37% for the first
six months of 2011. The decrease is also due to a
$388.9 million decrease in the
average balance of interest-bearing deposits to $24.51 billion during the first six months of
2012 from $24.90 billion for the
first six months of 2011.
The decrease in the average cost of deposits for the first six
months of 2012 reflected lower market interest rates and our
decision to lower deposit rates to slow deposit growth. At
June 30, 2012, time deposits
scheduled to mature within one year totaled $8.30 billion with an average cost of
1.08%. These time deposits are scheduled to mature as
follows: $3.25 billion with an
average cost of 0.88% in the third quarter of 2012, $2.34 billion with an average cost of 1.21% in
the fourth quarter of 2012, $1.41
billion with an average cost of 1.27% in the first quarter
of 2013 and $1.30 billion with an
average cost of 1.15% in the second quarter of 2013. 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 $50.7 million to $144.8
million for the second quarter of 2012 from $195.5 million for the second quarter of 2011.
This decrease was due to a $7.73
billion decrease in the average balance of borrowed funds to
$13.87 billion for the second quarter
of 2012 from $21.60 billion for the
second quarter of 2011. This decrease was partially offset by
a 57 basis point increase in the weighted-average cost of borrowed
funds to 4.20% for the second quarter of 2012 as compared to 3.63%
for the second quarter of 2011. The decrease in the average
balance was primarily due to the effects of the debt
extinguishments in the fourth quarter of 2011. The increase
in the weighted-average cost of borrowed funds was due to the
maturity of short-term borrowings that were used to fund a portion
of the debt extinguishments in the Restructuring Transaction.
For the six months ended June 30,
2012 interest expense on borrowed funds decreased
$180.7 million to $291.6 million as compared to $472.3 million for the six months ended
June 30, 2011. This decrease was due
to a $10.84 billion decrease in the
average balance of borrowed funds to $14.29
billion for the first six months of 2012 as compared to
$25.13 billion for the first six
months of 2011. This decrease was partially offset by a 31
basis point increase in the weighted-average cost of borrowed funds
to 4.10% for the first six months of 2012 as compared to 3.79% for
the first six months of 2011. The decrease in the average
balance is primarily due to the effects of the Transactions.
The increase in the weighted-average cost of borrowed funds was due
to the maturity of short-term borrowings that were used to fund a
portion of the debt extinguishments in the Restructuring
Transaction.
Borrowings amounted to $13.43
billion at June 30, 2012 with
an average cost of 4.24%. Borrowings scheduled to mature over
the next 12 months are as follows: $750.0
million with an average cost of 0.85% in the third quarter
of 2012, $500.0 million with an
average cost of 0.98% in the fourth quarter of 2012 and there are
no scheduled maturities for the first or second quarters of
2013.
The provision for loan losses amounted to $25.0 million for the quarter ended June 30, 2012 as compared to $30.0 million for the quarter ended June 30, 2011. For the linked first quarter
of 2012, the provision for loan losses amounted to $25.0 million. The slight decrease in our
provision for loan losses during the second quarter of 2012 as
compared to the same period in 2011 was due primarily to the
overall declining trend in net charge-offs and a decrease in the
size of the loan portfolio. Non-performing loans, defined as
non-accruing loans and accruing loans delinquent 90 days or more,
amounted to $1.09 billion at
June 30, 2012 compared with
$1.02 billion at December 31, 2011. The ratio of non-performing
loans to total loans was 3.88% at June 30,
2012 compared with 3.48% at December
31, 2011. The highly publicized foreclosure issues
that have affected the nation's largest mortgage loan servicers
have resulted in greater bank regulatory, court and state attorney
general scrutiny. As a result, our foreclosure process and
the time to complete a foreclosure have been delayed. We are
now experiencing a time frame to repayment or foreclosure ranging
from 30 to 36 months from the initial non-performing period.
This protracted foreclosure process delays our ability to resolve
non-performing loans through the sale of the underlying collateral
and our ability to maximize any recoveries.
Loans delinquent 30 to 59 days amounted to $409.7 million at June 30,
2012 as compared to $427.2
million at December 31,
2011. Loans delinquent 60 to 89 days amounted to $190.2 million at June 30,
2012 as compared to $187.4
million at December 31,
2011. The allowance for loans losses amounted to $287.9 million at June 30,
2012 as compared to $273.8
million at December 31, 2011.
The allowance for loan losses as a percent of total loans and
as a percent of non-performing loans was 1.02% and 26.32%,
respectively at June 30, 2012, as
compared to 0.93% and 26.77%, respectively at December 31, 2011.
Net charge-offs amounted to $17.8
million for second quarter of 2012 as compared to
$23.0 million for the second quarter
of 2011 and $18.1 million for the
linked first quarter of 2012. The ratio of net charge-offs to
average loans was 0.25% for both the first and second quarters of
2012 as compared to 0.30% for the second quarter of 2011. For
the six months ended June 30, 2012,
net charge-offs amounted to $35.9
million as compared to $44.3
million of net charge-offs for the same period in 2011.
Total non-interest income was $2.9
million for the second quarter of 2012 as compared to
$2.7 million for the same quarter in
2011. Non-interest income is primarily made up of service
fees and charges on deposit and loan accounts.
Total non-interest income was $5.7
million for the first six months of 2012 as compared to
$107.9 million for the same period in
2011. Included in non-interest income for the first six months 2011
were net gains on securities transactions of $102.5 million which resulted from the sale of
$9.04 billion of securities
available-for-sale. Substantially all of the proceeds from
the sale of securities were used to pay off borrowings in the
Restructuring Transaction. There were no securities sales for
the six months ended June 30,
2012.
Total non-interest expense amounted to $83.6 million for the second quarter of 2012 as
compared to $85.8 million for the
same period in 2011. This decrease was due primarily to a
$5.5 million decrease in Federal
deposit insurance expense partially offset by increases of
$512,000 in compensation and employee
benefit costs, $513,000 in occupancy
expense, and $2.2 million in other
expense.
The decrease in Federal deposit insurance expense for the
quarter ended June 30, 2012 is
primarily due to the reduction in the size of our balance sheet as
a result of the Transactions.
Compensation and employee benefit costs increased $512,000, or 1.7%, to $30.4 million for the second quarter of 2012 as
compared to $29.9 million for the
same period in 2011. The increase in compensation costs is
primarily due to increases of $1.4
million in compensation costs and $612,000 in pension expense. The increase
in compensation costs was due primarily to additional full time
equivalent employees as well as normal salary increases. The
increase in pension expense is due primarily to the discount rate
and other actuarial assumptions used in determining pension
expense. These increases were partially offset by a
$1.6 million decrease in expense
related to our stock benefit plans due primarily to a decrease in
the price of our stock. At June 30,
2012, we had 1,599 full-time equivalent employees as
compared to 1,586 at December 31,
2011 and 1,577 at June 30,
2011.
Included in other expense for the second quarter of 2012 were
write-downs on foreclosed real estate and net losses on the sale of
foreclosed real estate of $202,000 as
compared to $2.1 million for the
second quarter of 2011. We sold 38 properties during the
second quarter of 2012 and had 127 properties in foreclosed real
estate, 32 of which were under contract to sell as of June 30, 2012. For the second quarter of
2011, we sold 45 properties and had 123 properties in foreclosed
real estate, of which 54 were under contract to sell as of
June 30, 2011.
Total non-interest expense amounted to $175.2 million for the six months ended
June 30, 2012 as compared to
$1.33 billion for the six months
ended June 30, 2011. Included
in total non-interest expense for the first six months of 2011 was
a $1.17 billion loss on the
extinguishment of debt related to the Restructuring
Transaction.
Compensation and employee benefit costs increased $1.7 million, or 2.8%, to $62.5 million for the first six months of 2012 as
compared to $60.8 million for the
same period in 2011. The increase in compensation costs is
primarily due to increases of $2.1
million in compensation costs, $1.3
million in pension expense and $461,000 in health plan expense. The
increase in compensation costs was due primarily to additional full
time equivalent employees as well as normal salary increases.
The increase in pension expense is due primarily to the discount
rate and other actuarial assumptions used in determining pension
expense. These increases were partially offset by a
$2.2 million decrease in expense
related to our stock benefit plans due primarily to a decrease in
the price of our stock.
For the six months ended June 30,
2012 Federal deposit insurance expense increased
$14.2 million, or 28.6%, to
$63.7 million from $49.5 million for the six months ended
June 30, 2011. This increase
was due primarily to the new insurance assessment methodology
adopted by the Federal Deposit Insurance Corporation that became
effective on April 1, 2011 and which
redefined the assessment base as average consolidated total assets
minus average tangible equity. Previously, deposit insurance
assessments were based on the amount of deposits.
Included in other non-interest expense for the six months ended
June 30, 2012 were write-downs on
foreclosed real estate and net losses on the sale of foreclosed
real estate, of $1.3 million as
compared to $2.8 million for the
comparable period in 2011. We sold 104 properties during the
first six months of 2012 as compared to 74 properties for the same
period in 2011.
Our efficiency ratio was 36.79% for the 2012 second quarter as
compared to 31.14% for the 2011 second quarter. For the six months
ended June 30, 2012, our efficiency
ratio was 37.75% compared with 28.63% for the corresponding 2011
period. The efficiency ratio is calculated by dividing non-interest
expense, excluding the loss on the extinguishment of debt, by the
sum of net interest income and non-interest income, excluding net
securities gains from the Restructuring Transaction. Our
annualized ratio of non-interest expense to average total assets
for the second quarter of 2012 was 0.77% as compared to 0.67% for
the second quarter of 2011. Our annualized ratio of non-interest
expense to average total assets for the six months ended
June 30, 2012 was 0.79% compared with
4.79% for the corresponding period in 2011. Excluding the loss on
the extinguishment of debt, our annualized ratio of operating
non-interest expense to average total assets was 0.56% for the
first six months of 2011. Please see the attached
Reconciliation of GAAP and Operating Earnings for a reconciliation
of operating earnings to the Company's earnings reported in
accordance with generally accepted accounting principles and a
calculation of the efficiency ratio.
Income tax expense amounted to $46.3
million for the second quarter of 2012 compared with
$63.8 million for the same quarter in
2011. Our effective tax rate for the second quarter of 2012
was 39.06% compared with 39.92% for the second quarter of 2011.
Income tax expense amounted to $93.7
million for the six months ended June
30, 2012 compared with income tax benefit of $299.5 million for the six months ended
June 30, 2011.
Hudson City Bancorp, Inc. maintains its corporate offices in
Paramus, New Jersey. Hudson City
Savings Bank, a well-established community financial institution
serving its customers since 1868, is the largest thrift institution
headquartered in New Jersey. Hudson City Savings Bank
currently operates a total of 135 branch offices in the
New York metropolitan and
surrounding areas.
Forward-Looking Statements
This release may contain certain "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, that are based on certain assumptions and describe future
plans, strategies and expectations of Hudson City Bancorp,
Inc. Such forward-looking statements 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, Inc., and Hudson City Bancorp, Inc.'s strategies,
plans, objectives, expectations and intentions, and other
statements contained in this release that are not historical
facts. Hudson City Bancorp, Inc.'s ability to predict results
or the actual effect of future plans or strategies is inherently
uncertain and actual results and performance could differ
materially from those contemplated or implied by these
forward-looking statements. They can be affected by inaccurate
assumptions Hudson City Bancorp, Inc. might make or by known or
unknown risks and uncertainties. Factors that could cause
assumptions to be incorrect include, but are not limited to,
changes in interest rates, general economic conditions, and
legislative, regulatory and public policy changes. These risks and
uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such
statements. For a summary of important factors that could
affect Hudson City Bancorp, Inc.'s forward-looking statements,
please refer to Hudson City Bancorp, Inc.'s filings with the
Securities and Exchange Commission available at www.sec.gov.
Hudson City Bancorp, Inc. 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
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
2012
|
2011
|
(In
thousands, except share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
Cash and
due from banks
|
|
$
130,768
|
|
$
194,029
|
Federal
funds sold and other overnight deposits
|
|
674,662
|
|
560,051
|
Total cash and cash equivalents
|
|
805,430
|
|
754,080
|
|
|
|
|
|
|
Securities
available for sale:
|
|
|
|
|
Mortgage-backed securities
|
|
9,309,881
|
|
9,170,390
|
Investment securities
|
|
417,590
|
|
7,368
|
Securities
held to maturity:
|
|
|
|
|
Mortgage-backed
securities
|
|
3,556,969
|
|
4,115,523
|
Investment securities
|
|
39,011
|
|
539,011
|
|
Total
securities
|
|
13,323,451
|
|
13,832,292
|
|
|
|
|
|
|
Loans
|
|
|
28,183,710
|
|
29,327,345
|
Net deferred loan costs
|
|
87,750
|
|
83,805
|
Allowance for loan losses
|
|
(287,901)
|
|
(273,791)
|
|
Net
loans
|
|
27,983,559
|
|
29,137,359
|
|
|
|
|
|
|
Federal
Home Loan Bank of New York stock
|
|
412,717
|
|
510,564
|
Foreclosed
real estate, net
|
|
40,568
|
|
40,619
|
Accrued
interest receivable
|
|
108,793
|
|
129,088
|
Banking
premises and equipment, net
|
|
74,313
|
|
70,610
|
Goodwill
|
|
152,109
|
|
152,109
|
Other
assets
|
|
689,245
|
|
729,164
|
|
Total Assets
|
|
$
43,590,185
|
|
$
45,355,885
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
Deposits:
|
|
|
|
|
Interest-bearing
|
|
$
24,027,204
|
|
$
24,903,311
|
Noninterest-bearing
|
|
617,344
|
|
604,449
|
|
Total
deposits
|
|
24,644,548
|
|
25,507,760
|
|
|
|
|
|
|
Repurchase
agreements
|
|
6,950,000
|
|
6,950,000
|
Federal
Home Loan Bank of New York advances
|
|
6,475,000
|
|
8,125,000
|
|
Total
borrowed funds
|
|
13,425,000
|
|
15,075,000
|
|
|
|
|
|
|
Due to
brokers for securities purchases
|
|
629,145
|
|
-
|
Accrued
expenses and other liabilities
|
|
228,050
|
|
212,685
|
|
Total
liabilities
|
|
38,926,743
|
|
40,795,445
|
|
|
|
|
|
|
Common
stock, $0.01 par value, 3,200,000,000 shares authorized;
|
|
|
|
|
|
741,466,555 shares issued; 528,132,975 and
527,571,496 shares
|
|
|
|
|
|
outstanding at June 30, 2012 and December 31,
2011
|
|
7,415
|
|
7,415
|
Additional
paid-in capital
|
|
4,725,363
|
|
4,720,890
|
Retained
earnings
|
|
1,774,138
|
|
1,709,821
|
Treasury
stock, at cost; 213,333,580 and 213,895,059 shares at June 30,
2012
|
|
|
|
|
|
and
December 31, 2011
|
|
(1,714,526)
|
|
(1,719,114)
|
Unallocated common stock held by the employee stock
ownership plan
|
|
(195,220)
|
|
(198,223)
|
Accumulated other comprehensive income, net of
tax
|
|
66,272
|
|
39,651
|
|
Total
shareholders' equity
|
|
4,663,442
|
|
4,560,440
|
|
Total Liabilities and Shareholders' Equity
|
|
$
43,590,185
|
|
$
45,355,885
|
Hudson
City Bancorp, Inc. and Subsidiary
Consolidated Statements of Income
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
|
For the
Six Months
|
Ended
June 30,
|
|
Ended
June 30,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
(In
thousands, except per share data)
|
Interest
and Dividend Income:
|
|
|
|
|
|
|
|
|
|
First
mortgage loans
|
|
$
336,026
|
|
$
380,375
|
|
$
678,751
|
|
$
763,328
|
|
Consumer
and other loans
|
|
3,220
|
|
4,077
|
|
6,603
|
|
8,225
|
|
Mortgage-backed securities held to
maturity
|
|
33,651
|
|
55,761
|
|
71,460
|
|
116,977
|
|
Mortgage-backed securities available for
sale
|
|
49,040
|
|
69,415
|
|
101,871
|
|
191,507
|
|
Investment
securities held to maturity
|
|
585
|
|
32,708
|
|
2,318
|
|
65,535
|
|
Investment
securities available for sale
|
|
2,165
|
|
57
|
|
3,418
|
|
832
|
|
Dividends
on Federal Home Loan Bank of New York stock
|
|
5,536
|
|
9,632
|
|
14,025
|
|
22,433
|
|
Federal
funds sold
|
|
438
|
|
707
|
|
1,006
|
|
1,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividend
income
|
|
430,661
|
|
552,732
|
|
879,452
|
|
1,170,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
61,642
|
|
84,360
|
|
129,518
|
|
168,678
|
|
Borrowed
funds
|
|
144,766
|
|
195,463
|
|
291,563
|
|
472,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
206,408
|
|
279,823
|
|
421,081
|
|
640,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
224,253
|
|
272,909
|
|
458,371
|
|
529,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses
|
|
25,000
|
|
30,000
|
|
50,000
|
|
70,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income after provision for loan losses
|
|
199,253
|
|
242,909
|
|
408,371
|
|
459,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
|
|
|
Service
charges and other income
|
|
2,924
|
|
2,732
|
|
5,711
|
|
5,471
|
|
Gain on
securities transactions, net
|
|
-
|
|
-
|
|
-
|
|
102,468
|
|
Total non-interest
income
|
|
2,924
|
|
2,732
|
|
5,711
|
|
107,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
30,401
|
|
29,889
|
|
62,543
|
|
60,773
|
|
Net
occupancy expense
|
|
8,543
|
|
8,030
|
|
17,200
|
|
16,455
|
|
Federal
deposit insurance assessment
|
|
27,695
|
|
33,198
|
|
63,695
|
|
49,528
|
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
1,172,092
|
|
Other
expense
|
|
16,932
|
|
14,720
|
|
31,731
|
|
27,557
|
|
Total non-interest
expense
|
|
83,571
|
|
85,837
|
|
175,169
|
|
1,326,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income tax expense (benefit)
|
|
118,606
|
|
159,804
|
|
238,913
|
|
(759,156)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense (Benefit)
|
|
46,330
|
|
63,796
|
|
93,650
|
|
(299,500)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
72,276
|
|
$
96,008
|
|
$
145,263
|
|
$
(459,656)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Earnings (Loss) Per Share
|
|
0.15
|
|
$
0.19
|
|
$
0.29
|
|
$
(0.93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share
|
|
$
0.15
|
|
$
0.19
|
|
$
0.29
|
|
$
(0.93)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
496,539,980
|
|
494,137,888
|
|
496,267,105
|
|
493,993,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
496,552,810
|
|
494,751,960
|
|
496,291,724
|
|
493,993,685
|
Hudson
City Bancorp, Inc. and Subsidiary
Reconciliation of GAAP and Operating Earnings
(Unaudited)
|
Operating
earnings are not a measure of performance calculated in accordance
with U.S. generally accepted accounting principles ("GAAP").
However, we believe that operating earnings are an important
indication of earnings from our core banking operations. Operating
earnings typically exclude the effects of certain non-recurring or
unusual transactions, such as the Transactions. We believe that our
presentation of operating earnings provides useful supplemental
information to both management and investors in evaluating the
Company's financial results.
Operating
earnings should not be considered a substitute for net income,
earnings per share or any other data prepared in accordance with
GAAP. In addition, we may calculate operating earnings differently
from other companies reporting data with similar names. The
following is a reconciliation of the Company's GAAP and operating
earnings for the periods presented:
|
|
|
|
|
|
|
|
For the
Three Months Ended
|
|
For the
Six Months Ended
|
|
|
June
30,
|
|
|
June
30,
|
|
|
2012
|
|
2011
|
|
|
2012
|
|
2011
|
|
|
(In
thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
GAAP
(Loss) Earnings
|
|
$
72,276
|
|
$
96,008
|
|
|
$
145,263
|
|
$
(459,656)
|
Adjustments to GAAP earnings (loss) :
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt
|
|
-
|
|
-
|
|
|
-
|
|
1,172,092
|
Net gain on securities sales related
to
|
|
|
|
|
|
|
|
|
|
Restructuring Transaction
(5)
|
|
-
|
|
-
|
|
|
-
|
|
(98,278)
|
Income tax effect
|
|
-
|
|
-
|
|
|
-
|
|
(424,479)
|
Operating
earnings
|
|
72,276
|
|
96,008
|
|
|
145,263
|
|
189,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
GAAP (Loss) Earnings per Share
|
|
0.15
|
|
0.19
|
|
|
0.29
|
|
(0.93)
|
Adjustments to GAAP earnings (loss):
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of
debt
|
|
-
|
|
-
|
|
|
-
|
|
2.37
|
Net gain on securities sales related
to
|
|
|
|
|
|
|
|
|
|
Restructuring Transaction
(5)
|
|
-
|
|
-
|
|
|
-
|
|
(0.20)
|
Income tax effect
|
|
-
|
|
-
|
|
|
-
|
|
(0.85)
|
Diluted operating earnings
per share
|
|
$
0.15
|
|
$
0.19
|
|
|
$
0.29
|
|
$
0.39
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
496,539,980
|
|
494,137,888
|
|
|
496,267,105
|
|
493,993,685
|
Diluted
|
|
496,552,810
|
|
494,751,960
|
|
|
496,291,724
|
|
494,709,376
|
|
|
|
|
|
|
|
|
|
|
Operating Efficiency Ratio
|
|
|
|
|
|
|
|
|
|
Total
non-interest expense
|
|
$
83,571
|
|
$
85,837
|
|
|
$
175,169
|
|
$
1,326,405
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
|
-
|
|
(1,172,092)
|
Operating non-interest
expense
|
|
$
83,571
|
|
$
85,837
|
|
|
$
175,169
|
|
$
154,313
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
224,253
|
|
272,909
|
|
|
458,371
|
|
529,310
|
Total
non-interest income
|
|
2,924
|
|
2,732
|
|
|
5,711
|
|
107,939
|
Net gains
on securities transactions related to
|
|
|
|
|
|
|
|
|
|
Restructuring Transaction (5)
|
|
-
|
|
-
|
|
|
-
|
|
(98,278)
|
Operating
non-interest income
|
|
2,924
|
|
2,732
|
|
|
5,711
|
|
9,661
|
Total operating income
|
|
$
227,177
|
|
$
275,641
|
|
|
$
464,082
|
|
$
538,971
|
|
|
|
|
|
|
|
|
|
|
Operating
efficiency ratio (4)
|
|
36.79%
|
|
31.14%
|
|
|
37.75%
|
|
28.63%
|
Ratio of
operating earnings to average assets (1) (2)
|
|
0.66%
|
|
0.74%
|
|
|
0.66%
|
|
0.68%
|
Ratio of
operating earnings to average equity (1) (3)
|
|
6.19%
|
|
8.00%
|
|
|
6.26%
|
|
7.47%
|
|
|
|
|
|
|
|
|
|
|
(1) Ratios
are annualized.
|
|
|
(2)
Calculated by dividing annualized operating earnings by average
assets
|
(3)
Calculated by dividing annualized operating earnings by average
shareholders' equity
|
(4)
Calculated by dividing operating non-interest expense by total
operating income
|
(5) Total
net securities gains amounted $102.5 million for the six months
ended June 30, 2011.
|
There were no
securities gains for the three and six month periods ended June 30,
2012.
|
Hudson
City Bancorp, Inc. and Subsidiary
Consolidated Average Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended June 30,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
mortgage loans, net (1)
|
$
27,964,835
|
|
$
336,026
|
|
4.81
|
%
|
$
29,845,530
|
|
$
380,375
|
|
5.10
|
%
|
|
|
Consumer
and other loans
|
275,188
|
|
3,220
|
|
4.68
|
|
313,139
|
|
4,077
|
|
5.21
|
|
|
|
|
Federal
funds sold and other overnight deposits
|
740,488
|
|
438
|
|
0.24
|
|
480,382
|
|
707
|
|
0.29
|
|
|
|
|
Mortgage-backed securities at amortized
cost
|
12,272,475
|
|
82,691
|
|
2.70
|
|
15,427,817
|
|
125,176
|
|
3.25
|
|
|
|
|
Federal
Home Loan Bank stock
|
434,659
|
|
5,536
|
|
5.09
|
|
788,405
|
|
9,632
|
|
4.89
|
|
|
|
|
Investment
securities, at amortized cost
|
413,945
|
|
2,750
|
|
2.66
|
|
3,919,585
|
|
32,765
|
|
3.34
|
|
|
|
|
|
Total
interest-earning assets
|
42,101,590
|
|
430,661
|
|
4.09
|
|
50,774,858
|
|
552,732
|
|
4.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings assets (4)
|
1,496,313
|
|
|
|
|
|
1,390,039
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
43,597,903
|
|
|
|
|
|
$
52,164,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
908,233
|
|
751
|
|
0.33
|
|
$
867,141
|
|
1,399
|
|
0.65
|
|
|
|
|
Interest-bearing transaction accounts
|
2,165,699
|
|
3,323
|
|
0.62
|
|
2,016,548
|
|
4,013
|
|
0.80
|
|
|
|
|
Money
market accounts
|
7,772,634
|
|
9,178
|
|
0.47
|
|
7,914,933
|
|
20,689
|
|
1.05
|
|
|
|
|
Time
deposits
|
13,363,531
|
|
48,390
|
|
1.46
|
|
14,169,657
|
|
58,259
|
|
1.65
|
|
|
|
|
|
Total
interest-bearing deposits
|
24,210,097
|
|
61,642
|
|
1.02
|
|
24,968,279
|
|
84,360
|
|
1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
6,950,000
|
|
78,016
|
|
4.51
|
|
7,720,330
|
|
86,795
|
|
4.51
|
|
|
|
|
Federal
Home Loan Bank of New York advances
|
6,920,055
|
|
66,750
|
|
3.88
|
|
13,881,044
|
|
108,668
|
|
3.14
|
|
|
|
|
|
Total
borrowed funds
|
13,870,055
|
|
144,766
|
|
4.20
|
|
21,601,374
|
|
195,463
|
|
3.63
|
|
|
|
|
|
Total
interest-bearing liabilities
|
38,080,152
|
|
206,408
|
|
2.18
|
|
46,569,653
|
|
279,823
|
|
2.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
605,116
|
|
|
|
|
|
577,051
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
243,351
|
|
|
|
|
|
216,418
|
|
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
848,467
|
|
|
|
|
|
793,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
38,928,619
|
|
|
|
|
|
47,363,122
|
|
|
|
|
|
|
|
Shareholders' equity
|
4,669,284
|
|
|
|
|
|
4,801,775
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$
43,597,903
|
|
|
|
|
|
$
52,164,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income/net interest rate spread (2)
|
|
|
$
224,253
|
|
1.91
|
|
|
|
$
272,909
|
|
1.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets/net interest margin (3)
|
$
4,021,438
|
|
|
|
2.12
|
%
|
$
4,205,205
|
|
|
|
2.14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities
|
|
|
|
|
1.11
|
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 $121.4 million and $133.0
million
|
|
|
|
|
|
for the
quarters ended June 30, 2012 and 2011, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary
Consolidated Average Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
mortgage loans, net (1)
|
$
28,249,757
|
|
$
678,751
|
|
4.81
|
%
|
$
29,947,703
|
|
$
763,328
|
|
5.10
|
%
|
|
|
|
|
Consumer
and other loans
|
281,402
|
|
6,603
|
|
4.69
|
|
317,250
|
|
8,225
|
|
5.19
|
|
|
|
|
|
|
Federal
funds sold and other overnight deposits
|
821,939
|
|
1,006
|
|
0.25
|
|
1,007,679
|
|
1,418
|
|
0.28
|
|
|
|
|
|
|
Mortgage-backed securities at amortized
cost
|
12,507,416
|
|
173,331
|
|
2.77
|
|
18,455,170
|
|
308,484
|
|
3.34
|
|
|
|
|
|
|
Federal
Home Loan Bank stock
|
464,774
|
|
14,025
|
|
6.04
|
|
828,288
|
|
22,433
|
|
5.42
|
|
|
|
|
|
|
Investment
securities, at amortized cost
|
408,162
|
|
5,736
|
|
2.81
|
|
3,958,925
|
|
66,367
|
|
3.35
|
|
|
|
|
|
|
|
Total
interest-earning assets
|
42,733,450
|
|
879,452
|
|
4.12
|
|
54,515,015
|
|
1,170,255
|
|
4.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings assets (4)
|
1,505,320
|
|
|
|
|
|
1,358,562
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
44,238,770
|
|
|
|
|
|
$
55,873,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
894,730
|
|
1,573
|
|
0.35
|
|
$
863,895
|
|
2,772
|
|
0.65
|
|
|
|
|
|
|
Interest-bearing transaction accounts
|
2,086,520
|
|
6,589
|
|
0.64
|
|
2,064,324
|
|
8,159
|
|
0.80
|
|
|
|
|
|
|
Money
market accounts
|
8,117,980
|
|
21,835
|
|
0.54
|
|
7,451,303
|
|
38,556
|
|
1.04
|
|
|
|
|
|
|
Time
deposits
|
13,413,771
|
|
99,521
|
|
1.49
|
|
14,522,391
|
|
119,191
|
|
1.66
|
|
|
|
|
|
|
|
Total
interest-bearing deposits
|
24,513,001
|
|
129,518
|
|
1.06
|
|
24,901,913
|
|
168,678
|
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
6,950,000
|
|
156,198
|
|
4.52
|
|
10,687,277
|
|
226,488
|
|
4.27
|
|
|
|
|
|
|
Federal
Home Loan Bank of New York advances
|
7,344,766
|
|
135,365
|
|
3.71
|
|
14,447,292
|
|
245,779
|
|
3.43
|
|
|
|
|
|
|
|
Total
borrowed funds
|
14,294,766
|
|
291,563
|
|
4.10
|
|
25,134,569
|
|
472,267
|
|
3.79
|
|
|
|
|
|
|
|
Total
interest-bearing liabilities
|
38,807,767
|
|
421,081
|
|
2.18
|
|
50,036,482
|
|
640,945
|
|
2.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
543,800
|
|
|
|
|
|
518,199
|
|
|
|
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
246,428
|
|
|
|
|
|
240,871
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
790,228
|
|
|
|
|
|
759,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
39,597,995
|
|
|
|
|
|
50,795,552
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
4,640,775
|
|
|
|
|
|
5,078,025
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$
44,238,770
|
|
|
|
|
|
$
55,873,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income/net interest rate spread (2)
|
|
|
$
458,371
|
|
1.94
|
|
|
|
$
529,310
|
|
1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets/net interest margin (3)
|
$
3,925,683
|
|
|
|
2.13
|
%
|
$
4,478,533
|
|
|
|
1.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities
|
|
|
|
|
1.10
|
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 $115.8 million and $166.5
million
|
|
|
|
|
|
|
|
for the
six months ended June 30, 2012 and 2011, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary
Book
Value Calculations
|
|
|
|
|
|
|
|
|
June
30, 2012
|
(In
thousands, except share and per share data)
|
|
|
|
|
|
Shareholders' equity
|
|
$
4,663,442
|
Goodwill
and other intangible assets
|
|
(154,470)
|
Tangible
Shareholders' equity
|
|
$
4,508,972
|
|
|
|
Book Value
Share Computation:
|
|
|
Issued
|
|
741,466,555
|
Treasury shares
|
|
(213,333,580)
|
Shares outstanding
|
|
528,132,975
|
Unallocated ESOP
shares
|
|
(31,271,001)
|
Unvested RRP
shares
|
|
(3,010)
|
Shares in trust
|
|
(325,901)
|
Book value shares
|
|
496,533,063
|
|
|
|
Book value
per share
|
|
$
9.39
|
|
|
|
Tangible
book value per share
|
|
$
9.08
|
Hudson
City Bancorp, Inc.
Other
Financial Data
|
Securities Portfolio at June 30,
2012
|
|
|
|
|
|
|
Amortized
|
|
Estimated
|
|
Unrealized
|
|
Cost
|
|
Fair
Value
|
|
Gain/(Loss)
|
|
|
|
(Dollars
in thousands)
|
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
FHLMC
|
$
1,890,551
|
|
$
2,012,775
|
|
$
122,224
|
FNMA
|
1,007,833
|
|
1,081,381
|
|
73,548
|
FHLMC and FNMA CMO's
|
579,964
|
|
617,387
|
|
37,423
|
GNMA
|
78,621
|
|
81,429
|
|
2,808
|
Total
mortgage-backed securities
|
3,556,969
|
|
3,792,972
|
|
236,003
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
United States GSE
debt
|
39,011
|
|
45,566
|
|
6,555
|
Total investment
securities
|
39,011
|
|
45,566
|
|
6,555
|
|
|
|
|
|
|
Total
held to maturity
|
$
3,595,980
|
|
$
3,838,538
|
|
$
242,558
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
FHLMC
|
$
3,299,922
|
|
$
3,371,760
|
|
$
71,838
|
FNMA
|
4,673,423
|
|
4,754,671
|
|
81,248
|
FHLMC and FNMA CMO's
|
69,352
|
|
71,749
|
|
2,397
|
GNMA
|
1,077,666
|
|
1,111,701
|
|
34,035
|
Total
mortgage-backed securities
|
9,120,363
|
|
9,309,881
|
|
189,518
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
Corporate debt
|
407,167
|
|
410,096
|
|
2,929
|
Equity securities
|
6,813
|
|
7,494
|
|
681
|
Total investment
securities
|
413,980
|
|
417,590
|
|
3,610
|
|
|
|
|
|
|
Total available for
sale
|
$
9,534,343
|
|
$
9,727,471
|
|
$
193,128
|
Hudson
City Bancorp, Inc.
Other
Financial Data
|
Loan
Data at June 30, 2012:
|
|
|
|
|
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
|
|
$
957,340
|
|
2,657
|
|
3.40%
|
|
$
27,010,836
|
|
64,792
|
95.84%
|
FHA/VA
|
|
113,058
|
|
448
|
|
0.40%
|
|
700,528
|
|
3,500
|
2.49%
|
PMI
|
|
11,288
|
|
35
|
|
0.04%
|
|
166,032
|
|
540
|
0.59%
|
Construction
|
|
4,090
|
|
4
|
|
0.01%
|
|
4,170
|
|
5
|
0.01%
|
Commercial
|
|
2,082
|
|
6
|
|
0.01%
|
|
37,760
|
|
81
|
0.13%
|
Total mortgage loans
|
|
1,087,858
|
|
3,150
|
|
3.86%
|
|
27,919,326
|
|
68,918
|
99.06%
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity loans
|
|
4,910
|
|
53
|
|
0.02%
|
|
243,157
|
|
6,606
|
0.86%
|
Other
loans
|
|
1,108
|
|
3
|
|
-
|
|
21,227
|
|
2,112
|
0.08%
|
Total
|
|
$
1,093,876
|
|
3,206
|
|
3.88%
|
|
$
28,183,710
|
|
77,636
|
100.00%
|
- Net charge-offs amounted to $17.8
million for the second quarter of 2012.
- 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.
- Based on the valuation indices, house prices have declined in
the New York metropolitan area,
where 77.5% of our non-performing loans were located at
June 30, 2012, by approximately 26%
from the peak of the market in 2006 through April 2012 and by 33% nationwide during that
period. From April 2011 to
April 2012, the house price indices
decreased by approximately 3% in the New
York metropolitan area and 2% 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 June 30,
2012:
|
|
|
|
Carrying
|
|
|
Number
Under
|
|
|
Number
|
|
Value
|
|
|
Contract of Sale
|
|
|
|
|
(Dollars
in thousands)
|
|
|
|
Foreclosed
real estate
|
|
127
|
|
$
40,568
|
|
|
32
|
|
|
|
|
|
|
|
|
- During the first six months of 2012, we sold 104 foreclosed
properties. Write-downs on foreclosed real estate and net losses on
the sale of foreclosed real estate amounted to $1.3 million for the first six months of
2012.
Hudson
City Bancorp, Inc. and Subsidiary
|
Other
Financial Data
|
(Unaudited)
|
|
|
|
At or
for the Quarter Ended
|
|
|
|
June
30, 2012
|
|
March
31, 2012
|
|
Dec.
31, 2011
|
|
Sept.
30, 2011
|
|
June
30, 2011
|
|
(Dollars in thousands, except per share
data)
|
Net
interest income
|
$
224,253
|
|
$
234,118
|
|
$
206,981
|
|
$
244,643
|
|
$
272,909
|
Provision
for loan losses
|
25,000
|
|
25,000
|
|
25,000
|
|
25,000
|
|
30,000
|
Non-interest income
|
2,924
|
|
2,787
|
|
2,884
|
|
3,094
|
|
2,732
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
30,401
|
|
32,142
|
|
25,155
|
|
27,201
|
|
29,889
|
FDIC
insurance assessment
|
27,695
|
|
36,000
|
|
37,587
|
|
33,866
|
|
33,198
|
Other
non-interest expense
|
25,475
|
|
23,456
|
|
757,352
|
|
22,594
|
|
22,750
|
Total
non-interest expense
|
83,571
|
|
91,598
|
|
820,094
|
|
83,661
|
|
85,837
|
Income
(loss) before income tax expense (benefit)
|
118,606
|
|
120,307
|
|
(635,229)
|
|
139,076
|
|
159,804
|
Income tax
expense (benefit)
|
46,330
|
|
47,320
|
|
(274,693)
|
|
54,873
|
|
63,796
|
Net income
(loss)
|
$
72,276
|
|
$
72,987
|
|
$
(360,536)
|
|
$
84,203
|
|
$
96,008
|
Total
assets
|
$
43,590,185
|
|
$
44,138,584
|
|
$
45,355,885
|
|
$
50,850,815
|
|
$
51,778,639
|
Loans,
net
|
27,983,559
|
|
28,534,080
|
|
29,137,359
|
|
29,870,173
|
|
30,203,196
|
Mortgage-backed securities
|
12,866,850
|
|
12,893,495
|
|
13,285,913
|
|
14,439,298
|
|
15,380,480
|
Other
securities
|
456,601
|
|
357,619
|
|
546,379
|
|
1,646,362
|
|
3,646,171
|
Deposits
|
24,644,548
|
|
25,121,541
|
|
25,507,760
|
|
25,421,419
|
|
25,554,601
|
Borrowings
|
13,425,000
|
|
14,175,000
|
|
15,075,000
|
|
20,225,000
|
|
21,125,000
|
Shareholders' equity
|
4,663,442
|
|
4,617,509
|
|
4,560,440
|
|
4,979,469
|
|
4,887,959
|
Performance Data:
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1)
|
0.66%
|
|
0.65%
|
|
-2.91%
|
|
0.65%
|
|
0.74%
|
Return on
average equity (1)
|
6.19%
|
|
6.33%
|
|
-29.50%
|
|
6.80%
|
|
8.00%
|
Net
interest rate spread(1)
|
1.91%
|
|
1.95%
|
|
1.51%
|
|
1.76%
|
|
1.94%
|
Net
interest margin (1)
|
2.12%
|
|
2.15%
|
|
1.73%
|
|
1.97%
|
|
2.14%
|
Non-interest expense to average assets (1)
(4)
|
0.77%
|
|
0.82%
|
|
6.62%
|
|
0.65%
|
|
0.67%
|
Compensation and benefits to total revenue
(5)
|
13.38%
|
|
13.57%
|
|
11.99%
|
|
10.98%
|
|
10.84%
|
Efficiency
ratio (2)
|
36.79%
|
|
38.66%
|
|
41.79%
|
|
33.77%
|
|
31.14%
|
Dividend
payout ratio
|
53.33%
|
|
53.33%
|
|
NM
|
|
47.06%
|
|
42.11%
|
Per
Common Share Data:
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per common share
|
$0.15
|
|
$0.15
|
|
($0.73)
|
|
$0.17
|
|
$0.19
|
Diluted
(loss) earnings per common share
|
$0.15
|
|
$0.15
|
|
($0.73)
|
|
$0.17
|
|
$0.19
|
Book value
per share (3)
|
$9.39
|
|
$9.30
|
|
$9.20
|
|
$10.05
|
|
$9.89
|
Tangible
book value per share (3)
|
$9.08
|
|
$8.99
|
|
$8.89
|
|
$9.74
|
|
$9.58
|
Dividends
per share
|
$0.08
|
|
$0.08
|
|
$0.08
|
|
$0.08
|
|
$0.08
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Equity to
total assets (consolidated)
|
10.70%
|
|
10.46%
|
|
10.05%
|
|
9.79%
|
|
9.44%
|
Tier 1
leverage capital (Bank)
|
9.44%
|
|
9.17%
|
|
8.83%
|
|
8.77%
|
|
8.44%
|
Total
risk-based capital (Bank)
|
20.66%
|
|
20.39%
|
|
20.00%
|
|
21.57%
|
|
20.27%
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Full-time
equivalent employees
|
1,599
|
|
1,604
|
|
1,586
|
|
1,580
|
|
1,577
|
Number of
branch offices
|
135
|
|
135
|
|
135
|
|
135
|
|
135
|
Asset
Quality Data:
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans
|
$
1,093,876
|
|
$
1,064,585
|
|
$
1,022,687
|
|
$
948,706
|
|
$
914,239
|
Number of
non-performing loans
|
3,206
|
|
3,109
|
|
2,987
|
|
2,759
|
|
2,627
|
Total
number of loans
|
77,636
|
|
79,303
|
|
80,823
|
|
82,662
|
|
83,332
|
Total
non-performing assets
|
$
1,134,444
|
|
$
1,099,355
|
|
$
1,063,306
|
|
$
989,682
|
|
$
952,603
|
Non-performing loans to total loans
|
3.88%
|
|
3.71%
|
|
3.48%
|
|
3.16%
|
|
3.01%
|
Non-performing assets to total assets
|
2.60%
|
|
2.49%
|
|
2.34%
|
|
1.95%
|
|
1.84%
|
Allowance
for loan losses
|
$
287,901
|
|
$
280,713
|
|
$
273,791
|
|
$
268,754
|
|
$
262,306
|
Allowance
for loan losses to non-performing loans
|
26.32%
|
|
26.37%
|
|
26.77%
|
|
28.33%
|
|
28.69%
|
Allowance
for loan losses to total loans
|
1.02%
|
|
0.98%
|
|
0.93%
|
|
0.89%
|
|
0.86%
|
Provision
for loan losses
|
$
25,000
|
|
$
25,000
|
|
$
25,000
|
|
$
25,000
|
|
$
30,000
|
Net
charge-offs
|
$
17,812
|
|
$
18,078
|
|
$
19,963
|
|
$
18,552
|
|
$
22,977
|
Ratio of
net charge-offs to average loans (1)
|
0.25%
|
|
0.25%
|
|
0.27%
|
|
0.25%
|
|
0.30%
|
Net losses
on foreclosed real estate
|
$
202
|
|
$
1,128
|
|
$
2,552
|
|
$
2,080
|
|
$
2,053
|
(1) Ratios
are annualized.
|
|
|
|
|
(4)
Computed by dividing non-interest expense by average
assets.
|
(2)
Computed by dividing non-interest expense by the sum of net
interest income and non-interest income. For the
|
|
(5)
Computed by dividing compensation and benefits by the sum
of
|
December
31, 2011 quarter, non-interest expense excludes the loss on debt
extinguishments and non-interest
|
|
net
interest income and non-interest income
|
income
excludes securities gains from the Transactions. See the attached
Reconciliation of GAAP and Operating
|
|
|
|
|
|
|
Earnings
for a calculation of the efficiency ratio.
|
|
|
|
|
|
|
|
|
|
(3) See
page 16 for the Book Value Calculations for book value per share
and tangible book value per share.
|
|
NM - not
meaningful
|
SOURCE Hudson City Bancorp, Inc.