Hudson City Bancorp, Inc. Reports Quarterly Earnings of $47.9
Million
PARAMUS, N.J., Jan. 30, 2013 /PRNewswire/ -- Hudson City
Bancorp, Inc. (NASDAQ: HCBK) (the "Company"), the holding company
for Hudson City Savings Bank (the "Bank"), reported today net
income of $47.9 million for the
quarter ended December 31, 2012 as
compared to a net loss of $360.5
million for the quarter ended December 31, 2011. Diluted earnings per share
amounted to $0.10 for the fourth
quarter of 2012 as compared to a net loss per share of $0.73 for the fourth quarter of 2011. The
net loss in the fourth quarter of 2011 was due to the
extinguishment of $4.3 billion of
borrowings which resulted in an after-tax charge of $416.8 million. For the year ended
December 31, 2012, the Company
reported net income of $249.1 million
as compared to a net loss of $736.0
million for the year ended December
31, 2011. Diluted earnings per share was $0.50 for the year ended December 31, 2012 as compared to a net loss per
share of $1.49 for the year ended
December 31, 2011. The net loss
for 2011 was driven by the results of a restructuring of the
Company's balance sheet in the first quarter of 2011 (the
"Restructuring Transaction") as well as the extinguishment of
$4.3 billion of borrowings in the
fourth 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 February 28, 2013 to shareholders of record on
February 11, 2013.
Financial highlights for the fourth quarter of 2012 are as
follows:
- Our interest rate spread and net interest margin were 1.75% and
1.97%, respectively, for the fourth quarter of 2012 as compared to
1.51% and 1.73%, respectively, for the fourth quarter of 2011.
For the linked third quarter of 2012, our interest rate
spread and net interest margin were 1.80% and 2.02%,
respectively. The interest rate spread and net interest
margin for the fourth quarter of 2011 were adversely affected by
elevated levels of liquidity which were used to extinguish
$4.3 billion of borrowings in the
fourth quarter of 2011.
- The provision for loan losses was $25.0
million for both the fourth quarter of 2012 and 2011.
Net charge-offs decreased to $14.2
million for the fourth quarter of 2012 as compared to
$20.0 million for the fourth quarter
of 2011. The increase in our provision for loan losses from
$20.0 million for the linked third
quarter of 2012 is primarily due to the loss exposure related to
the effects of Hurricane Sandy.
- Total assets decreased 10.5% to $40.60
billion at December 31, 2012
from $45.36 billion at December 31, 2011, primarily due to repayments of
mortgage-related assets.
- Total deposits decreased $2.03
billion, or 8.0%, to $23.48
billion at December 31, 2012
from $25.51 billion at December 31, 2011 due to planned reductions in
deposit rates to curtail deposit growth during this time of limited
investment opportunities.
- Borrowings decreased $2.90
billion, or 19.2%, to $12.18
billion at December 31, 2012
from $15.08 billion at December 31, 2011 due to the maturities of
short-term borrowings.
- The Bank's Tier 1 leverage capital ratio increased to 10.09% at
December 31, 2012 as compared to
8.83% at December 31, 2011.
- As previously announced, on August 27,
2012, the Company entered into a definitive agreement with
M&T Bank Corporation ("M&T) and Wilmington Trust
Corporation ("Merger Sub"), a wholly owned subsidiary of M&T,
providing for the merger of the Company with and into Merger Sub
(the "Merger"), with Merger Sub as the surviving entity. As part of
the Merger, the Bank will merge with and into Manufacturers and
Traders Trust Company. In connection with the Merger, M&T
has filed a registration statement on Form S-4 with the Securities
and Exchange Commission (the "SEC") that includes a joint proxy
statement of the Company and M&T and a prospectus of M&T,
as well as other relevant documents concerning the Merger. On
January 9, 2013, M&T filed
Amendment No. 1 to the Form S-4. The Registration Statement is
subject to completion and has not yet become effective. The Merger
is subject to shareholder and regulatory approvals and the
satisfaction of other customary conditions. The Company
anticipates that the closing of the Merger will take place in the
second quarter of 2013.
Ronald E. Hermance, Jr., the
Company's Chairman and Chief Executive Officer commented, "Net
income for the fourth quarter was $47.9
million or $0.10 per diluted
share. The decrease in net income from the linked third
quarter is due to the continuing reduction in the size of the
balance sheet as investment alternatives remain scarce in the
current interest rate environment. In addition, we suspended
the execution of the initiatives that were outlined in our 2012
Strategic Plan as we move towards completion of our merger with
M&T."
Mr. Hermance continued, "In the days following Hurricane Sandy,
we identified our mortgage loans that were in the areas most
affected by the storm. We performed property inspections on
these homes and evaluated the potential impact to the collateral,
taking into account flood insurance coverage and land values.
We estimate that our loss exposure to these loans is less than
$6.0 million. As a result we
increased our loan loss provision to $25.0
million during the fourth quarter as compared to
$20.0 million for the linked third
quarter. As we reported to you previously, we were fortunate
to have only one branch significantly damaged by Hurricane
Sandy. That branch, in the Midland Beach section of
Staten Island, has since
reopened. Most importantly, we continue to work with our
customers to help them, and their communities, recover. "
Statement of Financial Condition Summary
Total assets decreased $4.76
billion, or 10.5%, to $40.60
billion at December 31, 2012
from $45.36 billion at December 31, 2011. The decrease in total assets
reflected a $2.27 billion decrease in
total mortgage-backed securities, a $2.25
billion decrease in net loans and a $154.1 million decrease in Federal Home Loan Bank
("FHLB") stock.
Net loans amounted to $26.89
billion at December 31, 2012
as compared to $29.14 billion at
December 31, 2011. During 2012,
our loan production (origination and purchases) amounted to
$5.06 billion as compared to
$5.27 billion for 2011. Loan
production was offset by principal repayments of $7.13 billion in 2012, as compared to principal
repayments of $6.71 billion in
2011. Loan production declined during 2012 which reflects our
low appetite for adding long-term fixed-rate mortgage 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 $2.27 billion to $11.02
billion at December 31, 2012
from $13.29 billion at December 31, 2011. The decrease in
mortgage-backed securities reflected repayments of $3.69 billion, partially offset by purchases of
$1.47 billion of mortgage-backed
securities issued by government-sponsored entities ("GSEs").
Total liabilities decreased $4.90
billion, or 12.0%, to $35.90
billion at December 31, 2012
from $40.80 billion at December 31, 2011. The decrease in total
liabilities primarily reflected a $2.90
billion decrease in borrowed funds and a decrease in total
deposits of $2.03 billion.
Borrowings amounted to $12.18
billion at December 31, 2012
as compared to $15.08 billion at
December 31, 2011. The decrease
in borrowed funds is a result of the maturity of short-term
borrowings during 2012 and the continuation of our strategy of
allowing the balance sheet to deleverage as the borrowings mature.
The decrease in deposits is primarily due to planned reductions in
our deposit rates to curtail deposit growth at this time of limited
investment opportunities.
Total shareholders' equity increased $139.4 million to $4.70
billion at December 31, 2012
from $4.56 billion at December 31, 2011. The increase was primarily due
to net income of $249.1 million for
the year ended December 31, 2012 and
an increase in accumulated other comprehensive income of
$30.3 million. The increase was
partially offset by cash dividends paid to common shareholders of
$158.8 million. At December 31, 2012, our consolidated shareholders'
equity to asset ratio was 11.59% and our tangible book value per
share was $9.16.
Accumulated other comprehensive income amounted to $70.0 million at December
31, 2012 and included a $122.5
million after-tax net unrealized gain on securities
available for sale ($207.2 million
pre-tax) partially offset by a $52.5
million after-tax accumulated other comprehensive loss
related to the funded status of our employee benefit plans.
Accumulated other comprehensive income amounted to $39.7 million at December
31, 2011 and 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 economic
activity and employment have continued to expand at a moderate pace
in recent months, apart from weather-related disruptions, although
the unemployment rate remains elevated. The FOMC noted that
while the housing sector and household spending continue to show
signs of improvement, growth in business fixed investment has
slowed. The national unemployment rate was 7.8% in December 2012, a decline from an 8.5%
unemployment rate in December 2011.
The FOMC decided to maintain the overnight lending rate at zero to
0.25% during the fourth quarter of 2012 and stated that
exceptionally low levels for the federal funds rate will be
appropriate at least as long as the unemployment rate remains above
6.5%. Previously, the FOMC stated that these levels for the
federal funds rate are likely to be warranted at least through
mid-2015. As a result, market interest rates have remained at
low levels, and consequently, the yields on our mortgage-related
assets have continued to decrease during 2012.
The FOMC decided to expand its accommodative monetary policy by
purchasing an additional $40.0
billion of agency mortgage-backed securities per month to
ensure that inflation is at the rate most consistent with its dual
mandate regarding both inflation and unemployment. In addition,
during 2013 the Federal Reserve will purchase longer-term Treasury
securities initially at a pace of $45.0
billion per month. This follows the completion of
"Operation Twist" at the end of 2012. These programs will
continue to put downward pressure on longer-term interest
rates.
Net interest income decreased $14.7
million, or 7.1%, to $192.3
million for the fourth quarter of 2012 as compared to
$207.0 million for the fourth quarter
of 2011. The decrease in net interest income reflects the
overall decrease in the average balance of interest-earning assets
and interest-bearing liabilities. Our interest rate spread
increased slightly to 1.75% for the fourth quarter of 2012 as
compared to 1.51% for the fourth quarter of 2011. Our net
interest margin was 1.97% for the fourth quarter of 2012 as
compared to 1.73% for the fourth quarter of 2011.
Net interest income decreased $127.0
million, or 12.9%, to $853.9
million for 2012 as compared to $980.9 million for 2011. Our interest rate
spread increased 18 basis points to 1.85% for 2012 as compared to
1.67% for 2011. Our net interest margin increased 17 basis
points to 2.06% for 2012 as compared to 1.89% for 2011. The
increase in our interest rate spread and net interest margin for
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 the Restructuring
Transaction.
The Restructuring Transaction 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
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 fourth quarter of
2012 decreased $84.6 million, or
17.9%, to $388.2 million from
$472.8 million for the fourth 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 $8.52
billion, or 17.7%, to $39.71
billion for the fourth quarter of 2012 from $48.23 billion for the fourth quarter of
2011. The annualized weighted-average yield on total
interest-earning assets was 3.91% for the fourth quarter of 2012 as
compared to 3.92% for the fourth 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 and repayments of mortgage-related assets
during 2012 due to the low interest rate environment.
Total interest and dividend income for the year ended
December 31, 2012 decreased
$494.6 million, or 22.8%, to
$1.67 billion from $2.17 billion for the year ended December 31, 2011. The decrease in total interest
and dividend income was primarily due to a $10.37 billion or 20.0% decrease in the average
balance of total interest-earning assets to $41.43 billion for the year ended December 31, 2012 from $51.80 billion for the year ended December 31, 2011. The decrease in total
interest and dividend income was also due to a decrease of 14 basis
points in the weighted-average yield on total interest-earning
assets to 4.04% for 2012 from 4.18% for 2011. The decrease in
the average balance of total interest-earning assets was due
primarily to the effects of the Transactions and elevated levels of
repayments of mortgage-related assets during 2012 due to the low
interest rate environment.
Interest on first mortgage loans decreased $44.2 million, or 12.5%, to $309.8 million for the fourth quarter of 2012 as
compared to $354.0 million for the
fourth quarter of 2011. This was primarily due to a
$2.23 billion decrease in the average
balance of first mortgage loans to $27.01
billion for the fourth quarter of 2012 from $29.24 billion for the same quarter in
2011. The decrease in interest income on mortgage loans was
also due to a 25 basis point decrease in the annualized
weighted-average yield to 4.59% for the fourth quarter of 2012 from
4.84% for the fourth quarter of 2011.
For the year ended December 31,
2012, interest on first mortgage loans decreased
$183.4 million, or 12.3%, to
$1.31 billion from $1.49 billion for the year ended December 31, 2011. This was primarily due
to a $2.04 billion decrease in the
average balance of first mortgage loans to $27.68 billion for the year ended December 31, 2012 from $29.72 billion for the year ended December 31, 2011. The decrease in interest
income on mortgage loans was also due to a 29 basis point decrease
in the weighted-average yield to 4.73% for the year ended
December 31, 2012 from 5.02% for the
year ended December 31, 2011.
The decreases in the average yields earned during the three and
twelve month periods ended December 31,
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 average balance
of our first mortgage loans to decline for those same periods as
our loan production decreased reflecting our low appetite for
adding long-term fixed-rate mortgage loans in the current low
interest rate environment.
Interest on mortgage-backed securities decreased $30.4 million to $67.5
million for the fourth quarter of 2012 from $97.9 million for the fourth quarter of
2011. This decrease was due primarily to a $2.44 billion decrease in the average balance of
mortgage-backed securities to $11.24
billion for the fourth quarter of 2012 from $13.68 billion for the fourth quarter of 2011.
The decrease in the average balance of mortgage-backed
securities was due primarily to elevated levels of principal
repayments in the current low interest rate environment. The
decrease in interest on mortgage-backed securities was also due to
a 46 basis point decrease in the annualized weighted-average yield
to 2.40% for the fourth quarter of 2012 from 2.86% for the fourth
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 $200.6 million to $314.0
million for the year ended December
31, 2012 from $514.6 million
for the year ended December 31,
2011. This decrease was due primarily to a $4.27 billion decrease in the average balance of
mortgage-backed securities to $12.03
billion for 2012 from $16.30
billion for 2011. The decrease in interest income on
mortgage-backed securities was also due to a 55 basis point
decrease in the weighted-average yield to 2.61% for 2012 from 3.16%
for 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 $4.2 million to $3.0
million for the fourth quarter of 2012 from $7.2 million for the fourth quarter of
2011. This decrease was due primarily to a $441.7 million decrease in the average balance of
investment securities to $452.7
million for the fourth quarter of 2012 from $894.4 million for the fourth quarter of
2011. In addition, the average yield of investment securities
decreased 63 basis points to 2.61% for the fourth quarter of 2012
from 3.24% for the fourth quarter of 2011. The decrease in
the average balance is due primarily to calls of $1.10 billion of investment securities during the
fourth quarter of 2011.
For the year ended December 31,
2012, interest on investment securities decreased
$89.5 million to $11.6 million from $101.1
million for the year ended December
31, 2011. This decrease was due primarily to a
$2.59 billion decrease in the average
balance of investment securities to $429.5
million for 2012 from $3.02
billion for 2011. The decrease in the average balance
is due primarily to calls of $3.40
billion of investment securities during 2011. In
addition, the average yield of investment securities decreased 64
basis points to 2.71% for 2012 from 3.35% for 2011. The
decrease in the average yield earned reflects current market
interest rates.
Dividends on FHLB stock decreased $2.9
million, or 38.7%, to $4.6
million for the fourth quarter of 2012 from $7.5 million for the fourth quarter of
2011. This decrease was due primarily to a $305.4 million decrease in the average balance of
FHLB stock to $372.3 million for the
fourth quarter of 2012 from $677.7
million for the fourth quarter of 2011. The effect of
the decrease was partially offset by a 48 basis point increase in
the average dividend yield earned to 4.93% for the fourth quarter
of 2012 as compared to 4.45% for the fourth 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 $15.3
million, or 39.4%, to $23.5
million for the year ended December
31, 2012 from $38.8 million
for the year ended December 31,
2011. The decrease was primarily due to a $344.7 million decrease in the average balance of
FHLB stock to $425.6 million for 2012
from $770.3 million for 2011.
The effect of the decrease was partially offset by a 48 basis point
increase in the average dividend yield earned to 5.52% for 2012 as
compared to 5.04% for 2011.
Interest on Federal funds and other overnight deposits sold
amounted to $243,000 for the fourth
quarter of 2012 as compared to $2.5
million for the fourth quarter of 2011. The average
balance of Federal funds sold and other overnight deposits amounted
to $386.3 million for the fourth
quarter of 2012 as compared to $3.44
billion for the fourth quarter of 2011. The yield
earned on Federal funds sold and other overnight deposits was 0.25%
for the 2012 fourth quarter and 0.28% for the 2011 fourth
quarter.
Interest on Federal funds sold and other overnight deposits
amounted to $1.4 million for the year
ended December 31, 2012 as compared
to $4.4 million for the year ended
December 31, 2011. The average
balance of Federal funds sold and other overnight deposits amounted
to $591.1 million for 2012 as
compared to $1.67 billion for
2011. The yield earned on Federal funds sold and other
overnight deposits was 0.24% for the year ended December 31, 2012 and 0.26% for the year ended
December 31, 2011. The decrease
in the average balance of Federal funds sold and other overnight
deposits is primarily a result of the timing of the
Transactions.
Total interest expense for the quarter ended December 31, 2012 decreased $70.0 million, or 26.3%, to $195.9 million from $265.9
million for the quarter ended December 31, 2011. This decrease was
primarily due to an $8.24 billion, or
18.8%, decrease in the average balance of total interest-bearing
liabilities to $35.59 billion for the
quarter ended December 31, 2012 as
compared to $43.83 billion for the
fourth quarter of 2011. The decrease was also due to 25 basis point
decrease in the annualized weighted-average cost of total
interest-bearing liabilities to 2.16% for the quarter ended
December 31, 2012 from 2.41% for the
quarter ended December 31,
2011. The decrease in the average balance of total
interest-bearing liabilities was due primarily to a $6.49 billion decrease in the average balance of
borrowings and a $1.75 billion
decrease in the average balance of total deposits.
For the year ended December 31,
2012, total interest expense decreased $367.6 million, or 31.0%, to $819.1 million from $1.19
billion for the year ended December
31, 2011. This decrease was primarily due to a
$9.94 billion, or 21.0%, decrease in
the average balance of total interest-bearing liabilities to
$37.40 billion for the year ended
December 31, 2012 from $47.34 billion for the year ended December 31, 2011. The decrease was also due to a
32 basis point decrease in the weighted-average cost of total
interest-bearing liabilities to 2.19% for the year ended
December 31, 2012 from 2.51% for the
year ended December 31, 2011.
The decrease in the average balance of total interest-bearing
liabilities was due primarily to an $8.93
billion decrease in the average balance of borrowings and a
$1.02 billion decrease in the average
balance of deposits.
Interest expense on deposits decreased $26.1 million, or 33.3%, to $52.2 million for the fourth quarter of 2012 from
$78.3 million for the fourth quarter
of 2011. This decrease is due primarily to a decrease in the
average cost of interest-bearing deposits of 35 basis points to
0.90% for the fourth quarter of 2012 from 1.25% for the fourth
quarter of 2011. The decrease is also due to a $1.75 billion decrease in the average balance of
interest-bearing deposits to $23.07
billion for the fourth quarter of 2012 from $24.82 billion for the fourth quarter of
2011.
For the year ended December 31,
2012, interest expense on deposits decreased $89.8 million, or 27.3%, to $238.7 million from $328.5
million for the year ended December
31, 2011. This decrease is due primarily to a decrease
in the average cost of interest-bearing deposits of 32 basis points
to 1.00% for the year ended December 31,
2012 as compared to 1.32% for the year ended December 31, 2011. The decrease is also due
to a $1.02 billion decrease in the
average balance of interest-bearing deposits to $23.84 billion for the year ended December 31, 2012 from $24.86 billion for the year ended December 31, 2011.
The decrease in the average cost of deposits for 2012 reflected
lower market interest rates and our decision to maintain lower
deposit rates to slow deposit growth. At December 31, 2012, time deposits scheduled to
mature within one year totaled $7.64
billion with an average cost of 0.89%. These time
deposits are scheduled to mature as follows: $3.12 billion with an average cost of 0.78% in
the first quarter of 2013, $1.93
billion with an average cost of 0.90% in the second quarter
of 2013, $1.17 billion with an
average cost of 0.94% in the third quarter of 2013 and $1.42 billion with an average cost of 1.06% in
the fourth 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 $43.9 million to $143.7
million for the fourth quarter of 2012 from $187.6 million for the fourth quarter of 2011.
This decrease was due to a $6.49
billion decrease in the average balance of borrowed funds to
$12.52 billion for the fourth quarter
of 2012 from $19.01 billion for the
fourth quarter of 2011. This decrease was partially offset by
a 57 basis point increase in the annualized weighted-average cost
of borrowed funds to 4.49% for the fourth quarter of 2012 as
compared to 3.92% for the fourth quarter of 2011. The
decrease in the average balance of borrowed funds was primarily due
to the effects of the debt extinguishments in the fourth quarter of
2011 as well as $3.45 billion of
borrowings that matured during 2012. 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 year ended December 31,
2012, interest expense on borrowed funds decreased
$277.8 million to $580.4 million from $858.2
million for the year ended December
31, 2011. This decrease was due to an $8.91 billion decrease in the average balance of
borrowed funds to $13.57 billion for
2012 from $22.48 billion for
2011. This decrease was partially offset by a 46 basis point
increase in the weighted-average cost of borrowed funds to 4.28%
for 2012 as compared to 3.82% for 2011. The decrease in the
average balance of borrowed funds 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 lower cost
short-term borrowings that were used to fund a portion of the debt
extinguishments in the Restructuring Transaction.
Borrowings amounted to $12.18
billion at December 31, 2012
with an average cost of 4.59%. There are no scheduled maturities
for 2013.
The provision for loan losses amounted to $25.0 million for both the quarter ended
December 31, 2012 and 2011. The
increase in our provision for loan losses during the fourth quarter
of 2012 as compared to the linked third quarter of 2012 was due
primarily to the loss exposure on our loan portfolio as a result of
Hurricane Sandy and, to a lesser extent, an increase in the amount
of non-performing loans. We estimate that our loss exposure
to these loans is less than $6.0
million.
Non-performing loans, defined as non-accruing loans and accruing
loans delinquent 90 days or more, amounted to $1.16 billion at December
31, 2012 compared with $1.02
billion at December 31, 2011
and $1.14 billion at September 30, 2012. The ratio of
non-performing loans to total loans was 4.29% at December 31, 2012 compared with 3.48% at
December 31, 2011 and 4.12% at
September 30, 2012. The
foreclosure process and the time to complete a foreclosure continue
to be prolonged, especially in New
York and New Jersey where
68% of our non-performing loans are located. The time frame
to repayment or foreclosure is approximately 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 $393.8 million at December
31, 2012 as compared to $427.2
million at December 31, 2011
and $413.2 million at September 30, 2012. Loans delinquent 60 to
89 days amounted to $239.3 million at
December 31, 2012 as compared to
$187.4 million at December 31, 2011 and $212.1 million at September 30, 2012. The allowance for loan
losses amounted to $302.3 million at
December 31, 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 1.12% and 26.01%, respectively at
December 31, 2012, as compared to
0.93% and 26.77%, respectively at December
31, 2011.
Net charge-offs amounted to $14.2
million for fourth quarter of 2012 as compared to
$20.0 million for the fourth quarter
of 2011. The ratio of net charge-offs to average loans was
0.21% for fourth quarter of 2012 as compared to 0.27% for the
fourth quarter of 2011. For the year ended December 31, 2012, net charge-offs amounted to
$66.4 million as compared to
$82.8 million of net charge-offs for
the same period in 2011.
Total non-interest income was $2.7
million for the fourth quarter of 2012 as compared to
$2.9 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 $11.5
million for 2012 as compared to $113.9 million for 2011. Included in
non-interest income for the year 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 security sales for the year ended December 31, 2012.
Total non-interest expense amounted to $87.6 million for the fourth quarter of 2012 as
compared to $820.1 million for the
same period in 2011. Included in total non-interest expense
for the fourth quarter of 2011 was a $728.5
million loss on the extinguishment of debt completed in
December 2011.
Compensation and employee benefit costs increased $8.0 million, or 32.1%, to $33.2 million for the fourth quarter of 2012 as
compared to $25.2 million for the
same period in 2011. The increase in compensation and employee
benefit costs is primarily due to increases of $6.7 million in compensation costs, $1.1 million in health plan expense and
$520,000 in pension expense.
The increase in compensation expense is due primarily to a
$5.5 million increase in incentive
compensation plan expense for the fourth quarter of 2012 as
compared to the fourth quarter of 2011. The increase in health plan
expense 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. At December 31, 2012,
we had 1,622 full-time equivalent employees as compared to 1,586 at
December 31, 2011.
For the quarter ended December 31,
2012, Federal deposit insurance expense decreased
$7.8 million, or 20.7%, to
$29.8 million from $37.6 million for the quarter ended December 31, 2011. The decrease in Federal
deposit insurance expense for the quarter ended December 31, 2012 is primarily due to the
reduction in the size of our balance sheet as a result of the
Transactions.
Included in other expense for the quarter ended December 31, 2012 were write-downs on foreclosed
real estate and net losses on the sale of foreclosed real estate of
$565,000 as compared to $2.6 million for the fourth quarter of
2011. We sold 41 properties during the fourth quarter of 2012
and had 135 properties in foreclosed real estate with a carrying
value of $47.3 million, 30 of which
were under contract to sell as of December
31, 2012. For the fourth quarter of 2011, we sold 43
properties and had 134 properties in foreclosed real estate, of
which 55 were under contract to sell as of December 31, 2011.
Total non-interest expense amounted to $356.6 million for the year ended December 31, 2012 as compared to $2.23 billion for the year ended December 31, 2011. Included in total
non-interest expense for the year ended December 31, 2011 was a $1.90 billion loss on the extinguishment of debt
related to the Transactions.
Compensation and employee benefit costs increased $16.5 million, or 14.6%, to $129.6 million for 2012 as compared to
$113.1 million for 2011. The increase
in compensation and employee benefit costs is primarily due to
increases of $10.3 million in
compensation costs, $3.2 million in
health plan expense, and $2.5 million
in pension expense. The increase in compensation expense is
due primarily to a $5.0 million
increase in incentive compensation plan expense during 2012 as
compared to 2011. The increase in health plan expense 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.
For the year ended December 31,
2012, Federal deposit insurance expense increased
$2.7 million, or 2.24%, to
$123.7 million from $121.0 million for the year ended December 31, 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 expense for the year ended December 31, 2012 were write-downs on foreclosed
real estate and net losses on the sale of foreclosed real estate of
$1.9 million as compared to
$7.5 million for the comparable
period in 2011. We sold 191 properties during the year of
2012 as compared to 156 properties for the same period in 2011.
Our efficiency ratio was 44.87% for the 2012 fourth quarter as
compared to 41.79% for the 2011 fourth quarter. The
calculation of the efficiency ratio is on page 16. Our return
on average assets was 0.47% for the 2012 fourth quarter as compared
to (2.91)% for the 2011 fourth quarter. For the year ended
December 31, 2012, our efficiency
ratio was 41.21% compared to 32.68% for 2011, while our return on
average assets was 0.58% for the year ended December 31, 2012 as compared to (1.38)% for
2011. Our annualized ratio of non-interest expense to average total
assets for the fourth quarter of 2012 was 0.85% as compared to
6.62% for the fourth quarter of 2011. Our ratio of non-interest
expense to average total assets for the year ended December 31, 2012 was 0.83% compared with 4.20%
for 2011.
Income tax expense amounted to $34.5
million for the fourth quarter of 2012 compared with an
income tax benefit of $274.7 million
for the same quarter in 2011. Income tax expense amounted to
$164.6 million for the year ended
December 31, 2012 compared with an
income tax benefit of $519.3 million
for the year ended December 31,
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 banking 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, including the
Merger, 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,
including the Merger, 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,
legislative, regulatory and public policy changes, delays in
closing the Merger and the ability of Hudson City Bancorp, Inc. or
M&T to obtain regulatory approvals and meet other closing
conditions to the Merger, including receipt of shareholder
approval. 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.
Important Additional Information
In connection with the Merger, M&T filed with the SEC a
Registration Statement on Form S-4 that includes a Joint Proxy
Statement of M&T and the Company and a Prospectus of M&T,
as well as other relevant documents concerning the Merger. On
January 9, 2013, M&T filed
Amendment No. 1 to the Form S-4. The Registration Statement is
subject to completion and has not yet become effective.
SHAREHOLDERS OF THE COMPANY AND M&T ARE URGED TO READ THE
REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS
REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH
THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE
DOCUMENTS, BECAUSE THEY CONTAIN AND WILL CONTAIN IMPORTANT
INFORMATION.
A free copy of the Joint Proxy Statement/Prospectus, as well as
other filings containing information about the Company and M&T,
may be obtained at the SEC's Internet site (http://www.sec.gov).
These documents may also be obtained (once declared effective by
the SEC), free of charge, from M&T at www.mtb.com under the tab
"About Us" and then under the heading "Investor Relations" or from
the Company by accessing the Company's website at
www.hcsbonline.com under the heading "Investor Relations." Copies
of the Joint Proxy Statement/Prospectus can also be obtained, free
of charge, by directing a request to Investor Relations, One
M&T Plaza, Buffalo, New York
14203, (716) 842-5445.
The Company and M&T and certain of their directors and
executive officers may be deemed to be participants in the
solicitation of proxies from the shareholders of the Company and
M&T in connection with the Merger. Information about the
directors and executive officers of the Company and their ownership
of Company common stock is set forth in the proxy statement for the
Company's 2012 annual meeting of shareholders, as filed with the
SEC on a Schedule 14A on March 19,
2012. Information about the directors and executive officers
of M&T and their ownership of M&T common stock is set forth
in the proxy statement for M&T's 2012 annual meeting of
shareholders, as filed with the SEC on Schedule 14A on March 7, 2012. Additional information regarding
the interests of those participants and other persons who may be
deemed participants in the transaction may be obtained by reading
the Joint Proxy Statement/Prospectus regarding the Merger.
Free copies of this document may be obtained as described in the
preceding paragraph.
Hudson
City Bancorp, Inc. and Subsidiary
|
Consolidated Statements of Financial
Condition
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
2012
|
2011
|
(In
thousands, except share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
Cash and
due from banks
|
|
$
171,042
|
|
$
194,029
|
Federal
funds sold and other overnight deposits
|
|
656,926
|
|
560,051
|
Total cash and cash equivalents
|
|
827,968
|
|
754,080
|
|
|
|
|
|
|
Securities
available for sale:
|
|
|
|
|
Mortgage-backed securities
|
|
8,040,742
|
|
9,170,390
|
Investment securities
|
|
428,057
|
|
7,368
|
Securities
held to maturity:
|
|
|
|
|
Mortgage-backed
securities
|
|
2,976,757
|
|
4,115,523
|
Investment securities
|
|
39,011
|
|
539,011
|
|
Total
securities
|
|
11,484,567
|
|
13,832,292
|
|
|
|
|
|
|
Loans
|
|
|
27,090,879
|
|
29,327,345
|
Net deferred loan costs
|
|
97,534
|
|
83,805
|
Allowance for loan losses
|
|
(302,348)
|
|
(273,791)
|
|
Net
loans
|
|
26,886,065
|
|
29,137,359
|
|
|
|
|
|
|
Federal
Home Loan Bank of New York stock
|
|
356,467
|
|
510,564
|
Foreclosed
real estate, net
|
|
47,322
|
|
40,619
|
Accrued
interest receivable
|
|
87,075
|
|
129,088
|
Banking
premises and equipment, net
|
|
74,912
|
|
70,610
|
Goodwill
|
|
152,109
|
|
152,109
|
Other
assets
|
|
679,856
|
|
729,164
|
|
Total Assets
|
|
$
40,596,341
|
|
$
45,355,885
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
Deposits:
|
|
|
|
|
Interest-bearing
|
|
$
22,833,992
|
|
$
24,903,311
|
Noninterest-bearing
|
|
649,925
|
|
604,449
|
|
Total
deposits
|
|
23,483,917
|
|
25,507,760
|
|
|
|
|
|
|
Repurchase
agreements
|
|
6,950,000
|
|
6,950,000
|
Federal
Home Loan Bank of New York advances
|
|
5,225,000
|
|
8,125,000
|
|
Total
borrowed funds
|
|
12,175,000
|
|
15,075,000
|
|
|
|
|
|
|
Accrued
expenses and other liabilities
|
|
237,616
|
|
212,685
|
|
Total
liabilities
|
|
35,896,533
|
|
40,795,445
|
|
|
|
|
|
|
Common
stock, $0.01 par value, 3,200,000,000 shares authorized;
|
|
|
|
|
|
741,466,555 shares issued; 528,211,462 and
527,571,496 shares
|
|
|
|
|
|
outstanding at December 31, 2012 and December 31,
2011
|
|
7,415
|
|
7,415
|
Additional
paid-in capital
|
|
4,730,105
|
|
4,720,890
|
Retained
earnings
|
|
1,798,430
|
|
1,709,821
|
Treasury
stock, at cost; 213,255,093 and 213,895,059 shares
at
|
|
|
|
|
|
December 31, 2012 and December 31,
2011
|
|
(1,713,895)
|
|
(1,719,114)
|
Unallocated common stock held by the employee stock
ownership plan
|
|
(192,217)
|
|
(198,223)
|
Accumulated other comprehensive income, net of
tax
|
|
69,970
|
|
39,651
|
|
Total
shareholders' equity
|
|
4,699,808
|
|
4,560,440
|
|
Total Liabilities and Shareholders' Equity
|
|
$
40,596,341
|
|
$
45,355,885
|
Hudson
City Bancorp, Inc. and Subsidiary
|
Consolidated Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
For the
Three Months
|
|
For the
Year
|
Ended
December 31,
|
|
Ended
December 31,
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
(In
thousands, except per share data)
|
Interest
and Dividend Income:
|
|
|
|
|
|
|
|
|
|
First
mortgage loans
|
|
$
309,823
|
|
$
353,989
|
|
$
1,309,568
|
|
$
1,492,989
|
|
Consumer
and other loans
|
|
3,077
|
|
3,723
|
|
12,887
|
|
15,740
|
|
Mortgage-backed securities held to
maturity
|
|
26,903
|
|
46,680
|
|
127,861
|
|
213,211
|
|
Mortgage-backed securities available for
sale
|
|
40,567
|
|
51,211
|
|
186,174
|
|
301,349
|
|
Investment
securities held to maturity
|
|
585
|
|
7,187
|
|
3,488
|
|
100,196
|
|
Investment
securities available for sale
|
|
2,368
|
|
53
|
|
8,148
|
|
940
|
|
Dividends
on Federal Home Loan Bank of New York stock
|
|
4,592
|
|
7,546
|
|
23,470
|
|
38,820
|
|
Federal
funds sold
|
|
243
|
|
2,455
|
|
1,443
|
|
4,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividend
income
|
|
388,158
|
|
472,844
|
|
1,673,039
|
|
2,167,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
52,239
|
|
78,298
|
|
238,684
|
|
328,514
|
|
Borrowed
funds
|
|
143,655
|
|
187,565
|
|
580,432
|
|
858,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
195,894
|
|
265,863
|
|
819,116
|
|
1,186,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
192,264
|
|
206,981
|
|
853,923
|
|
980,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses
|
|
25,000
|
|
25,000
|
|
95,000
|
|
120,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income after provision for loan losses
|
|
167,264
|
|
181,981
|
|
758,923
|
|
860,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
|
|
|
Service
charges and other income
|
|
2,733
|
|
2,884
|
|
11,461
|
|
11,449
|
|
Gain on
securities transactions, net
|
|
-
|
|
-
|
|
-
|
|
102,468
|
|
Total non-interest
income
|
|
2,733
|
|
2,884
|
|
11,461
|
|
113,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
33,218
|
|
25,155
|
|
129,644
|
|
113,129
|
|
Net
occupancy expense
|
|
8,484
|
|
8,664
|
|
34,270
|
|
33,830
|
|
Federal
deposit insurance assessment
|
|
29,750
|
|
37,587
|
|
123,695
|
|
120,981
|
|
Loss on
extinguishment of debt
|
|
-
|
|
728,499
|
|
-
|
|
1,900,591
|
|
Other
expense
|
|
16,104
|
|
20,189
|
|
68,993
|
|
61,629
|
|
Total non-interest
expense
|
|
87,556
|
|
820,094
|
|
356,602
|
|
2,230,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income tax expense (benefit)
|
|
82,441
|
|
(635,229)
|
|
413,782
|
|
(1,255,309)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense (Benefit)
|
|
34,493
|
|
(274,693)
|
|
164,639
|
|
(519,320)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
47,948
|
|
$
(360,536)
|
|
$
249,143
|
|
$
(735,989)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
Earnings (Loss) Per Share
|
|
$
0.10
|
|
$
(0.73)
|
|
$
0.50
|
|
$
(1.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings (Loss) Per Share
|
|
$
0.10
|
|
$
(0.73)
|
|
$
0.50
|
|
$
(1.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
496,965,560
|
|
495,539,810
|
|
496,570,311
|
|
494,629,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
497,043,573
|
|
495,539,810
|
|
496,604,809
|
|
494,629,395
|
Hudson
City Bancorp, Inc. and Subsidiary
|
Consolidated Average Balance Sheets
|
(Unaudited)
|
|
|
|
|
For the
Three Months Ended December 31,
|
|
|
|
|
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)
|
$
27,005,937
|
|
$
309,823
|
|
4.59
|
%
|
$
29,244,286
|
|
$
353,989
|
|
4.84
|
%
|
|
Consumer
and other loans
|
256,698
|
|
3,077
|
|
4.79
|
|
297,289
|
|
3,723
|
|
5.01
|
|
|
Federal
funds sold and other overnight deposits
|
386,273
|
|
243
|
|
0.25
|
|
3,435,110
|
|
2,455
|
|
0.28
|
|
|
Mortgage-backed securities at amortized
cost
|
11,240,812
|
|
67,470
|
|
2.40
|
|
13,678,456
|
|
97,891
|
|
2.86
|
|
|
Federal
Home Loan Bank stock
|
372,315
|
|
4,592
|
|
4.93
|
|
677,724
|
|
7,546
|
|
4.45
|
|
|
Investment
securities, at amortized cost
|
452,706
|
|
2,953
|
|
2.61
|
|
894,352
|
|
7,240
|
|
3.24
|
|
|
|
Total
interest-earning assets
|
39,714,741
|
|
388,158
|
|
3.91
|
|
48,227,217
|
|
472,844
|
|
3.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings assets (4)
|
1,524,460
|
|
|
|
|
|
1,319,350
|
|
|
|
|
|
|
|
Total
Assets
|
$
41,239,201
|
|
|
|
|
|
$
49,546,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
930,625
|
|
599
|
|
0.26
|
|
$
867,011
|
|
1,098
|
|
0.50
|
|
|
Interest-bearing transaction accounts
|
2,283,400
|
|
2,206
|
|
0.38
|
|
1,964,963
|
|
3,742
|
|
0.76
|
|
|
Money
market accounts
|
6,822,577
|
|
5,930
|
|
0.35
|
|
8,325,595
|
|
18,198
|
|
0.87
|
|
|
Time
deposits
|
13,033,015
|
|
43,504
|
|
1.33
|
|
13,664,784
|
|
55,260
|
|
1.60
|
|
|
|
Total
interest-bearing deposits
|
23,069,617
|
|
52,239
|
|
0.90
|
|
24,822,353
|
|
78,298
|
|
1.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
6,950,000
|
|
79,136
|
|
4.46
|
|
7,530,978
|
|
85,699
|
|
4.51
|
|
|
Federal
Home Loan Bank of New York advances
|
5,570,652
|
|
64,519
|
|
4.53
|
|
11,476,087
|
|
101,866
|
|
3.52
|
|
|
|
Total
borrowed funds
|
12,520,652
|
|
143,655
|
|
4.49
|
|
19,007,065
|
|
187,565
|
|
3.92
|
|
|
|
Total
interest-bearing liabilities
|
35,590,269
|
|
195,894
|
|
2.16
|
|
43,829,418
|
|
265,863
|
|
2.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
634,767
|
|
|
|
|
|
598,832
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
265,772
|
|
|
|
|
|
228,889
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
900,539
|
|
|
|
|
|
827,721
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
36,490,808
|
|
|
|
|
|
44,657,139
|
|
|
|
|
|
Shareholders' equity
|
4,748,393
|
|
|
|
|
|
4,889,428
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$
41,239,201
|
|
|
|
|
|
$
49,546,567
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income/net interest rate spread (2)
|
|
|
$
192,264
|
|
1.75
|
|
|
|
$
206,981
|
|
1.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets/net interest margin (3)
|
$
4,124,472
|
|
|
|
1.97
|
%
|
$
4,397,799
|
|
|
|
1.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities
|
|
|
|
|
1.12
|
x
|
|
|
|
|
1.10
|
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 $123.5 million and $135.6 million
for the quarters ended December 31, 2012 and 2011,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary
|
Consolidated Average Balance Sheets
|
(Unaudited)
|
|
|
|
|
For the
Years Ended December 31,
|
|
|
|
|
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)
|
$
27,677,039
|
|
$
1,309,568
|
|
4.73
|
%
|
$
29,722,678
|
|
$1,492,989
|
|
5.02
|
%
|
|
Consumer
and other loans
|
270,188
|
|
12,887
|
|
4.77
|
|
309,245
|
|
15,740
|
|
5.09
|
|
|
Federal
funds sold and other overnight deposits
|
591,092
|
|
1,443
|
|
0.24
|
|
1,668,333
|
|
4,392
|
|
0.26
|
|
|
Mortgage-backed securities at amortized
cost
|
12,034,383
|
|
314,035
|
|
2.61
|
|
16,304,890
|
|
514,560
|
|
3.16
|
|
|
Federal
Home Loan Bank stock
|
425,561
|
|
23,470
|
|
5.52
|
|
770,314
|
|
38,820
|
|
5.04
|
|
|
Investment
securities, at amortized cost
|
429,539
|
|
11,636
|
|
2.71
|
|
3,021,573
|
|
101,136
|
|
3.35
|
|
|
|
Total
interest-earning assets
|
41,427,802
|
|
1,673,039
|
|
4.04
|
|
51,797,033
|
|
2,167,637
|
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings assets (4)
|
1,506,828
|
|
|
|
|
|
1,361,057
|
|
|
|
|
|
|
|
Total
Assets
|
$
42,934,630
|
|
|
|
|
|
$
53,158,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
908,903
|
|
2,761
|
|
0.30
|
|
$
866,029
|
|
5,071
|
|
0.59
|
|
|
Interest-bearing transaction accounts
|
2,181,326
|
|
11,608
|
|
0.53
|
|
2,015,019
|
|
15,698
|
|
0.78
|
|
|
Money
market accounts
|
7,529,380
|
|
35,059
|
|
0.47
|
|
7,842,413
|
|
75,506
|
|
0.96
|
|
|
Time
deposits
|
13,223,809
|
|
189,256
|
|
1.43
|
|
14,140,688
|
|
232,239
|
|
1.64
|
|
|
|
Total
interest-bearing deposits
|
23,843,418
|
|
238,684
|
|
1.00
|
|
24,864,149
|
|
328,514
|
|
1.32
|
|
|
Repurchase
agreements
|
6,950,000
|
|
314,485
|
|
4.52
|
|
9,127,800
|
|
398,929
|
|
4.37
|
|
|
Federal
Home Loan Bank of New York advances
|
6,623,094
|
|
265,947
|
|
4.02
|
|
13,349,342
|
|
459,260
|
|
3.44
|
|
|
|
Total
borrowed funds
|
13,573,094
|
|
580,432
|
|
4.28
|
|
22,477,142
|
|
858,189
|
|
3.82
|
|
|
|
Total
interest-bearing liabilities
|
37,416,512
|
|
819,116
|
|
2.19
|
|
47,341,291
|
|
1,186,703
|
|
2.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
611,656
|
|
|
|
|
|
583,257
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
230,491
|
|
|
|
|
|
232,617
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
842,147
|
|
|
|
|
|
815,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
38,258,659
|
|
|
|
|
|
48,157,165
|
|
|
|
|
|
Shareholders' equity
|
4,675,971
|
|
|
|
|
|
5,000,925
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$
42,934,630
|
|
|
|
|
|
$
53,158,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income/net interest rate spread (2)
|
|
|
$
853,923
|
|
1.85
|
|
|
|
$
980,934
|
|
1.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets/net interest margin (3)
|
$
4,011,290
|
|
|
|
2.06
|
%
|
$
4,455,742
|
|
|
|
1.89
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 weighted average cost of total interest-bearing
liabilities from the weighted average yield on total
interest-earning assets.
|
|
(3)
|
Determined
by dividing net interest income by total average interest-earning
assets.
|
|
(4)
|
Includes
the average balance of principal receivable related to FHLMC
mortgage-backed securities of $122.3 million and $156.4 million
for the years ended December 31, 2012
and 2011, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary
|
Calculation of Efficiency Ratio and Book Value
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Year Ended
|
|
|
|
At or
for the Quarter Ended
|
|
December 31,
|
|
|
|
Dec.
31, 2012
|
|
Sept.
30, 2012
|
|
June
30, 2012
|
|
March
31, 2012
|
|
Dec.
31, 2011
|
|
2012
|
|
|
2011
|
|
(Dollars
in thousands, except per share data)
|
|
|
|
|
Efficiency Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
$
192,264
|
|
$
203,288
|
|
$
224,253
|
|
$
234,118
|
|
$
206,981
|
|
$
853,923
|
|
|
$
980,934
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest income
|
2,733
|
|
3,017
|
|
2,924
|
|
2,787
|
|
2,884
|
|
11,461
|
|
|
113,917
|
|
Less net
gains on securities transactions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to debt
extinguishments
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
(98,278)
|
|
Total operating income
|
$
194,997
|
|
$
206,305
|
|
$
227,177
|
|
$
236,905
|
|
$
209,865
|
|
$
865,384
|
|
|
$
996,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest expense
|
$
87,556
|
|
$
93,877
|
|
$
83,571
|
|
$
91,598
|
|
$
820,094
|
|
356,602
|
|
|
2,230,160
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related costs
|
(54)
|
|
(6,073)
|
|
-
|
|
-
|
|
-
|
|
(6,127)
|
|
|
|
|
Loss on extinguishment of
debt
|
-
|
|
-
|
|
-
|
|
-
|
|
(728,499)
|
|
|
|
|
(1,900,591)
|
|
Valuation allowance related
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lehman Brothers, Inc.
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,900)
|
|
|
|
|
(3,900)
|
|
Total non-interest operating
expense
|
$
87,502
|
|
$
87,804
|
|
$
83,571
|
|
$
91,598
|
|
$
87,695
|
|
$
356,602
|
|
|
$
325,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio (1)
|
44.87%
|
|
42.56%
|
|
36.79%
|
|
38.66%
|
|
41.79%
|
|
41.21%
|
|
|
32.68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book
Value Calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
4,699,808
|
|
$
4,712,085
|
|
$
4,663,442
|
|
$
4,617,509
|
|
$
4,560,440
|
|
|
|
|
|
|
Goodwill
and other intangible assets
|
(154,235)
|
|
(154,094)
|
|
(154,470)
|
|
(154,844)
|
|
(155,217)
|
|
|
|
|
|
|
Tangible
shareholders' equity
|
$
4,545,573
|
|
$
4,557,991
|
|
$
4,508,972
|
|
$
4,462,665
|
|
$
4,405,223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value
Share Computation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
|
|
|
|
|
Treasury shares
|
(213,255,093)
|
|
(213,272,666)
|
|
(213,333,580)
|
|
(213,333,580)
|
|
(213,895,059)
|
|
|
|
|
|
|
Shares outstanding
|
528,211,462
|
|
528,193,889
|
|
528,132,975
|
|
528,132,975
|
|
527,571,496
|
|
|
|
|
|
|
Unallocated ESOP
shares
|
(30,789,909)
|
|
(31,030,455)
|
|
(31,271,001)
|
|
(31,511,547)
|
|
(31,752,096)
|
|
|
|
|
|
|
Unvested RRP
shares
|
-
|
|
-
|
|
(3,010)
|
|
(4,500)
|
|
(6,000)
|
|
|
|
|
|
|
Shares in trust
|
(391,266)
|
|
(361,251)
|
|
(325,901)
|
|
(299,493)
|
|
(269,325)
|
|
|
|
|
|
|
Book value shares
|
497,030,287
|
|
496,802,183
|
|
496,533,063
|
|
496,317,435
|
|
495,544,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share
|
$
9.46
|
|
$
9.48
|
|
$
9.39
|
|
$
9.30
|
|
$
9.20
|
|
|
|
|
|
|
Tangible
book value per share
|
9.15
|
|
9.17
|
|
9.08
|
|
8.99
|
|
8.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Calculated
by dividing total non-interest operating expense by total operating
income. These measures are non-GAAP financial
measures.
|
|
|
|
|
We believe
these measures, by excluding the transactions involved in our
balance sheet restructuring and our merger-related costs, provide a
better measure
|
|
of our
non-interest income and expenses.
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc.
|
Other
Financial Data
|
|
Securities Portfolio at December 31,
2012
|
|
|
Amortized
|
|
Estimated
|
|
Unrealized
|
|
Cost
|
|
Fair
Value
|
|
Gain/(Loss)
|
|
|
|
(Dollars
in thousands)
|
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
FHLMC
|
$
1,619,119
|
|
$
1,722,010
|
|
$
102,891
|
FNMA
|
856,840
|
|
918,252
|
|
61,412
|
FHLMC and FNMA CMO's
|
427,252
|
|
455,852
|
|
28,600
|
GNMA
|
73,546
|
|
76,378
|
|
2,832
|
Total
mortgage-backed securities
|
2,976,757
|
|
3,172,492
|
|
195,735
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
United States GSE
debt
|
39,011
|
|
45,592
|
|
6,581
|
Total investment
securities
|
39,011
|
|
45,592
|
|
6,581
|
|
|
|
|
|
|
Total
held to maturity
|
$
3,015,768
|
|
$
3,218,084
|
|
$
202,316
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
FHLMC
|
$
2,741,921
|
|
$
2,811,850
|
|
$
69,929
|
FNMA
|
4,053,485
|
|
4,135,635
|
|
82,150
|
FHLMC and FNMA CMO's
|
57,484
|
|
59,616
|
|
2,132
|
GNMA
|
995,510
|
|
1,033,641
|
|
38,131
|
Total
mortgage-backed securities
|
7,848,400
|
|
8,040,742
|
|
192,342
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
Corporate debt
|
406,410
|
|
420,590
|
|
14,180
|
Equity securities
|
6,813
|
|
7,467
|
|
654
|
Total investment
securities
|
413,223
|
|
428,057
|
|
14,834
|
|
|
|
|
|
|
Total available for
sale
|
$
8,261,623
|
|
$
8,468,799
|
|
$
207,176
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc.
|
Other
Financial Data
|
Loan
Data at December 31, 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
|
|
$
1,011,243
|
|
2,804
|
|
3.72%
|
|
$
25,973,859
|
|
62,026
|
95.87%
|
FHA/VA
|
|
129,553
|
|
525
|
|
0.48%
|
|
687,172
|
|
3,501
|
2.54%
|
PMI
|
|
7,399
|
|
24
|
|
0.03%
|
|
145,905
|
|
476
|
0.54%
|
Construction
|
|
4,669
|
|
3
|
|
0.02%
|
|
4,669
|
|
3
|
0.02%
|
Commercial
|
|
1,688
|
|
5
|
|
0.01%
|
|
32,259
|
|
76
|
0.12%
|
Total mortgage loans
|
|
1,154,552
|
|
3,361
|
|
4.26%
|
|
26,843,864
|
|
66,082
|
99.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity loans
|
|
5,661
|
|
67
|
|
0.02%
|
|
226,111
|
|
6,175
|
0.83%
|
Other
loans
|
|
2,314
|
|
4
|
|
0.01%
|
|
20,904
|
|
2,071
|
0.08%
|
Total
|
|
$
1,162,527
|
|
3,432
|
|
4.29%
|
|
$
27,090,879
|
|
74,328
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
- Net charge-offs amounted to $14.2
million for the fourth 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% of our non-performing loans were located at December 31, 2012, by approximately 25% from the
peak of the market in 2006 through October
2012 and by 30% nationwide during that period. From
October 2011 to October 2012, the house price indices decreased
3% in the New York metropolitan
area and increased 4% 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 December 31,
2012:
|
|
|
|
|
|
Carrying
|
|
|
Number
Under
|
|
|
Number
|
|
Value
|
|
|
Contract of Sale
|
|
|
|
|
(Dollars
in thousands)
|
|
|
|
Foreclosed
real estate
|
|
135
|
|
$
47,322
|
|
|
30
|
- During the year ended 2012, we sold 191 foreclosed properties.
Write-downs on foreclosed real estate and net losses on the sale of
foreclosed real estate amounted to $1.9
million for the year ended December
31, 2012.
Hudson
City Bancorp, Inc. and Subsidiary
|
Other
Financial Data
|
(Unaudited)
|
|
|
At or
for the Quarter Ended
|
|
Dec.
31, 2012
|
|
Sept.
30, 2012
|
|
June
30, 2012
|
|
March
31, 2012
|
|
Dec.
31, 2011
|
|
(Dollars in thousands, except per share
data)
|
Net
interest income
|
$
192,264
|
|
$
203,288
|
|
$
224,253
|
|
$
234,118
|
|
$
206,981
|
Provision
for loan losses
|
25,000
|
|
20,000
|
|
25,000
|
|
25,000
|
|
25,000
|
Non-interest income
|
2,733
|
|
3,017
|
|
2,924
|
|
2,787
|
|
2,884
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee
benefits
|
33,218
|
|
33,883
|
|
30,401
|
|
32,142
|
|
25,155
|
FDIC insurance assessment
|
29,750
|
|
30,250
|
|
27,695
|
|
36,000
|
|
37,587
|
Other non-interest
expense
|
24,588
|
|
29,744
|
|
25,475
|
|
23,456
|
|
757,352
|
Total non-interest expense
|
87,556
|
|
93,877
|
|
83,571
|
|
91,598
|
|
820,094
|
Income
(loss) before income tax expense (benefit)
|
82,441
|
|
92,428
|
|
118,606
|
|
120,307
|
|
(635,229)
|
Income tax
expense (benefit)
|
34,493
|
|
36,496
|
|
46,330
|
|
47,320
|
|
(274,693)
|
Net income
(loss)
|
$
47,948
|
|
$
55,932
|
|
$
72,276
|
|
$
72,987
|
|
$
(360,536)
|
Total
assets
|
$
40,596,341
|
|
$
41,898,593
|
|
$
43,590,185
|
|
$
44,138,584
|
|
$
45,355,885
|
Loans,
net
|
26,886,065
|
|
27,533,618
|
|
27,983,559
|
|
28,534,080
|
|
29,137,359
|
Mortgage-backed securities
|
11,017,499
|
|
12,028,452
|
|
12,866,850
|
|
12,893,495
|
|
13,285,913
|
Other
securities
|
467,068
|
|
467,418
|
|
456,601
|
|
357,619
|
|
546,379
|
Deposits
|
23,483,917
|
|
24,022,181
|
|
24,644,548
|
|
25,121,541
|
|
25,507,760
|
Borrowings
|
12,175,000
|
|
12,925,000
|
|
13,425,000
|
|
14,175,000
|
|
15,075,000
|
Shareholders' equity
|
4,699,808
|
|
4,712,085
|
|
4,663,442
|
|
4,617,509
|
|
4,560,440
|
Performance Data:
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1)
|
0.47%
|
|
0.53%
|
|
0.66%
|
|
0.65%
|
|
-2.91%
|
Return on
average equity (1)
|
4.04%
|
|
4.74%
|
|
6.19%
|
|
6.33%
|
|
-29.50%
|
Net
interest rate spread(1)
|
1.75%
|
|
1.80%
|
|
1.91%
|
|
1.95%
|
|
1.51%
|
Net
interest margin (1)
|
1.97%
|
|
2.02%
|
|
2.12%
|
|
2.15%
|
|
1.73%
|
Non-interest expense to average assets (1)
(4)
|
0.85%
|
|
0.88%
|
|
0.77%
|
|
0.82%
|
|
6.62%
|
Compensation and benefits to total revenue
(5)
|
17.04%
|
|
16.42%
|
|
13.38%
|
|
13.57%
|
|
11.99%
|
Operating
efficiency ratio (2)
|
44.87%
|
|
42.56%
|
|
36.79%
|
|
38.66%
|
|
41.79%
|
Dividend
payout ratio
|
80.00%
|
|
72.73%
|
|
53.33%
|
|
53.33%
|
|
NM
|
Per
Common Share Data:
|
|
|
|
|
|
|
|
|
|
Basic
earnings (loss) per common share
|
$0.10
|
|
$0.11
|
|
$0.15
|
|
$0.15
|
|
($0.73)
|
Diluted
earnings (loss) per common share
|
$0.10
|
|
$0.11
|
|
$0.15
|
|
$0.15
|
|
($0.73)
|
Book value
per share (3)
|
$9.46
|
|
$9.48
|
|
$9.39
|
|
$9.30
|
|
$9.20
|
Tangible
book value per share (3)
|
$9.15
|
|
$9.17
|
|
$9.08
|
|
$8.99
|
|
$8.89
|
Dividends
per share
|
$0.08
|
|
$0.08
|
|
$0.08
|
|
$0.08
|
|
$0.08
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Equity to
total assets (consolidated)
|
11.58%
|
|
11.25%
|
|
10.70%
|
|
10.46%
|
|
10.05%
|
Tier 1
leverage capital (Bank)
|
10.09%
|
|
9.75%
|
|
9.44%
|
|
9.17%
|
|
8.83%
|
Total
risk-based capital (Bank)
|
21.59%
|
|
21.02%
|
|
20.66%
|
|
20.39%
|
|
20.00%
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Full-time
equivalent employees
|
1,622
|
|
1,608
|
|
1,599
|
|
1,604
|
|
1,586
|
Number of
banking offices
|
135
|
|
135
|
|
135
|
|
135
|
|
135
|
Asset
Quality Data:
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans
|
$
1,162,527
|
|
$
1,143,125
|
|
$
1,093,876
|
|
$
1,064,585
|
|
$
1,022,687
|
Number of
non-performing loans
|
3,432
|
|
3,339
|
|
3,206
|
|
3,109
|
|
2,987
|
Total
number of loans
|
74,328
|
|
76,241
|
|
77,636
|
|
79,303
|
|
80,823
|
Total
non-performing assets
|
$
1,209,849
|
|
$
1,188,461
|
|
$
1,134,444
|
|
$
1,099,355
|
|
$
1,063,306
|
Non-performing loans to total loans
|
4.29%
|
|
4.12%
|
|
3.88%
|
|
3.71%
|
|
3.48%
|
Non-performing assets to total assets
|
2.98%
|
|
2.84%
|
|
2.60%
|
|
2.49%
|
|
2.34%
|
Allowance
for loan losses
|
$
302,348
|
|
$
291,573
|
|
$
287,901
|
|
$
280,713
|
|
$
273,791
|
Allowance
for loan losses to non-performing loans
|
26.01%
|
|
25.51%
|
|
26.32%
|
|
26.37%
|
|
26.77%
|
Allowance
for loan losses to total loans
|
1.12%
|
|
1.05%
|
|
1.02%
|
|
0.98%
|
|
0.93%
|
Provision
for loan losses
|
$
25,000
|
|
$
20,000
|
|
$
25,000
|
|
$
25,000
|
|
$
25,000
|
Net
charge-offs
|
$
14,225
|
|
$
16,328
|
|
$
17,812
|
|
$
18,078
|
|
$
19,963
|
Ratio of
net charge-offs to average loans (1)
|
0.21%
|
|
0.24%
|
|
0.25%
|
|
0.25%
|
|
0.27%
|
Net losses
on foreclosed real estate
|
$
565
|
|
$
(13)
|
|
$
202
|
|
$
1,128
|
|
$
2,552
|
(1)
Ratios are annualized.
|
|
|
|
(2) See
page 16 for a calculation of our Operating Efficiency
Ratios
|
|
|
|
(3) See
page 16 for the Book Value Calculations for book value per share
and tangible book value per share.
|
(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
|
NM - not
meaningful
|
|
|
|
SOURCE Hudson City Bancorp, Inc.