PARAMUS, N.J., April 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 March 31, 2013 as
compared to net income of $73.0
million for the quarter ended March
31, 2012. Diluted earnings per share amounted to
$0.10 for the first quarter of 2013
as compared to diluted earnings per share of $0.15 for the first quarter of 2012.
The Company also reported today that the Board of Directors
declared a quarterly cash dividend of $0.04 per share payable on May 30, 2013 to shareholders of record on
May 14, 2013.
Financial highlights for the first quarter of 2013 are as
follows:
- The Bank's Tier 1 leverage capital ratio increased to 10.20% at
March 31, 2013 as compared to 10.09%
at December 31, 2012.
- The provision for loan losses was $20.0
million for the first quarter of 2013 and $25.0 million for the first quarter of 2012.
- Non-performing loans decreased $26.2
million to $1.14 billion at
March 31, 2013 as compared to
$1.16 billion at December 31, 2012. This is the first
quarterly decrease in non-performing loans since the most recent
economic recession began. Early stage loan delinquencies
(defined as loans that are 30 to 89 days delinquent) decreased
$72.3 million to $560.8 million from $633.1
million at December 31, 2012.
- Our interest rate spread and net interest margin were 1.53% and
1.78%, respectively, for the first quarter of 2013 as compared to
1.95% and 2.15%, respectively, for the first quarter of 2012.
For the linked fourth quarter of 2012, our interest rate
spread and net interest margin were 1.75% and 1.97%,
respectively.
- Federal funds sold increased $2.0
billion primarily due to repayments of mortgage-related
assets.
- Total deposits decreased $320.8
million, or 1.4%, to $23.16
billion at March 31, 2013 from
$23.48 billion at December 31, 2012 due to planned reductions in
deposit rates to curtail deposit growth during this time of limited
investment opportunities.
- 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. On April 12,
2013, M&T and Hudson City Bancorp announced that
additional time will be required to obtain a regulatory
determination on the applications necessary to complete the
proposed Merger. M&T and Hudson City extended the date
after which either party may elect to terminate the merger
agreement if the Merger has not yet been completed from
August 27, 2013 to January 31, 2014, but there can be no assurances
that the Merger will be completed by that date.
Ronald E. Hermance, Jr., the
Company's Chairman and Chief Executive Officer commented, "Net
income for the quarter amounted to $47.9
million which reflects the continuing reduction in the size
of our balance sheet as well as our cash position which amounted to
$2.76 billion at March 31, 2013. Both of these factors reflect the
lack of reinvestment opportunities for the cash flows generated by
our mortgage-related assets in the current interest rate
environment. We will not reach for yield and will not take undue
credit or market risk in this protracted period of unprecedented
low market interest rates. As a result, our net interest margin and
earnings have decreased and, as a consequence, we decreased our
dividend. We believe these actions will help to keep our balance
sheet strong."
Mr. Hermance continued, "We are beginning to see the effects on
our loan portfolio of an improving economy, lower unemployment
rates and stabilized housing markets. Total delinquent loans
decreased $98.5 million during the
first quarter of 2013 and the time to resolve problem loans,
typically through the foreclosure process, while still prolonged,
is beginning to improve. The ability to resolve
non-performing loans in a more timely manner helps us to mitigate
charge-offs and redeploy these non-performing assets into
interest-earning assets."
Mr. Hermance concluded, "As we announced on April 12, 2013, some additional time will be
required to obtain regulatory approval for our merger with
M&T. However, we remain committed to a partnership with
M&T. The delay in completing the merger will not affect
the exchange ratio that was announced on August 27, 2012. The merger agreement, as
amended, was approved by the shareholders of both Hudson City and
M&T at each of their recent stockholder
meetings."
Statement of Financial Condition Summary
Total assets decreased $309.6
million, or 0.8%, to $40.29
billion at March 31, 2013 from
$40.60 billion at December 31, 2012. The decrease in total assets
reflected a $962.9 million decrease
in net loans, a $905.4 million
decrease in total mortgage-backed securities and a $375.9 million decrease in other assets,
partially offset by a $1.93 billion
increase in cash and cash equivalents.
Net loans amounted to $25.92
billion at March 31, 2013 as
compared to $26.89 billion at
December 31, 2012. During the
first quarter of 2013, our loan production (origination and
purchases) amounted to $824.8 million
as compared to $1.08 billion for the
first quarter of 2012. Loan production was offset by
principal repayments of $1.73 billion
during the first quarter of 2013, as compared to $1.64 billion for the first quarter of
2012. Loan production declined during the first three months
of 2013 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 $905.4 million to $10.11
billion at March 31, 2013 from
$11.02 billion at December 31, 2012. The decrease in
mortgage-backed securities reflected continued elevated levels of
repayments. Repayments amounted to $880.4 million for the first quarter of 2013 as
compared to $837.4 million for the
same period in 2012.
Total cash and cash equivalents increased $1.93 billion to $2.76
billion at March 31, 2013 as
compared to $828.0 million at
December 31, 2012. This
increase is primarily due to continued elevated levels of
repayments on mortgage-related assets and the lack of attractive
reinvestment opportunities due to low market interest rates.
In addition, we received tax refunds of $360.7 million as a result of the net loss in
2011 from our balance sheet restructuring transactions. Other
assets decreased $376.0 million to
$303.9 million at March 31, 2013 from $679.9
million at December 31,
2011 due primarily to a decrease in income taxes receivable
as a result of the $360.7 million of
tax refunds received during the first quarter of 2013.
Total liabilities decreased $321.3
million, or 0.9%, to $35.58
billion at March 31, 2013 from
$35.90 billion at December 31, 2012. The decrease in total
liabilities primarily reflected a decrease in total deposits of
$320.8 million.
Total shareholders' equity increased $11.6 million to $4.71
billion at March 31, 2013 from
$4.70 billion at December 31, 2012. The increase was primarily due
to net income of $47.9 million for
the quarter ended March 31, 2013. The
increase was partially offset by cash dividends paid to common
shareholders of $39.8 million.
At March 31, 2013, our consolidated
shareholders' equity to asset ratio was 11.69% and our tangible
book value per share was $9.16.
Accumulated other comprehensive income amounted to $68.1 million at March 31,
2013 and included a $119.8
million after-tax net unrealized gain on securities
available for sale ($202.5 million
pre-tax) partially offset by a $51.7
million after-tax accumulated other comprehensive loss
related to the funded status of our employee benefit plans.
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.
Statement of Income Summary
The Federal Open Market Committee of the Board of Governors of
the Federal Reserve System (the "FOMC") noted a return to moderate
economic growth following a pause late last year. The FOMC
noted that the housing sector has strengthened and household
spending and growth in business fixed investment has advanced.
Labor market conditions have continued to show signs of
improvement, but the unemployment rate remains at elevated
levels. The national unemployment rate decreased to 7.6% in
March 2013 from 7.8% in December 2012 and 8.2% in March 2012. The FOMC decided to maintain the
overnight lending rate at zero to 0.25% during the second quarter
of 2013 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 the first
quarter of 2013.
The FOMC also decided to continue its accommodative monetary
policy by purchasing an additional $40.0
billion of agency mortgage-backed securities per month and
longer-term Treasury securities initially at a pace of $45.0 billion per month to ensure that inflation
is at the rate most consistent with its dual mandate regarding both
inflation and unemployment. These programs will continue to put
downward pressure on longer-term interest
rates.
Net interest income decreased $56.7
million, or 24.2%, to $177.4
million for the first quarter of 2013 as compared to
$234.1 million for the first quarter
of 2012. The decrease in net interest income reflects the
overall decrease in the average balance of interest-earning assets
and interest-bearing liabilities and the continued low interest
rate environment. Our interest rate spread decreased to 1.53%
for the first quarter of 2013 as compared to 1.75% for the linked
fourth quarter of 2012 and 1.95% for the first quarter of 2012.
Our net interest margin was 1.78% for the first quarter of
2013 as compared 1.97% for the linked fourth quarter of 2012 and
2.15% for the first quarter of 2012.
Total interest and dividend income for the first quarter of 2013
decreased $82.7 million, or 18.4%, to
$366.1 million from $448.8 million for the first quarter of 2012. The
decrease in total interest and dividend income was due to a
decrease in the average balance of total interest-earning assets of
$4.16 billion, or 9.6%, to
$39.21 billion for the first quarter
of 2013 from $43.37 billion for the
first quarter of 2012. The decrease in the average balance of
total interest-earning assets was due primarily to repayments of
mortgage-related assets during 2012 and the first quarter of 2013
due to the low interest rate environment. The annualized
weighted-average yield on total interest-earning assets was 3.73%
for the first quarter of 2013 as compared 4.14% for the first
quarter in 2012. The decrease in the weighted average yield
of interest-earning assets was due to lower market interest rates
earned on mortgage-related assets and an increase in the average
balance of Federal funds and other overnight deposits which had an
average yield of 0.21%.
Interest on first mortgage loans decreased $48.3 million, or 14.1%, to $294.4 million for the first quarter of 2013 from
$342.7 million for the first quarter
of 2012. This was primarily due to a $2.36 billion decrease in the average balance of
first mortgage loans to $26.18
billion for the first quarter of 2013 from $28.54 billion for the same quarter in
2012. The decrease in interest income on mortgage loans was
also due to a 30 basis point decrease in the annualized
weighted-average yield to 4.50% for the first quarter of 2013 from
4.80% for the first quarter of 2012.
The decrease in the average yield earned on first mortgage loans
during the three month period ended March
31, 2013 was due to lower market interest rates on mortgage
products and 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 $29.7 million to $60.9
million for the first quarter of 2013 from $90.6 million for the first quarter of
2012. This decrease was due primarily to a $2.45 billion decrease in the average balance of
mortgage-backed securities to $10.29
billion for the first quarter of 2013 from $12.74 billion for the first quarter of 2012.
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 47 basis point decrease in the annualized weighted-average yield
to 2.37% for the first quarter of 2013 from 2.84% for the first
quarter of 2012. 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 amounted to $3.0 million for both the first quarter of 2013
and 2012. The average balance of investment securities was
$452.4 million for the first quarter
of 2013 as compared to $402.3 million
for the same quarter in 2012. The average yield of investment
securities was 2.64% for the 2013 first quarter and 2.97% for the
2012 first quarter. The decrease in the average yield earned
reflects current market interest rates.
Dividends on FHLB stock decreased $4.3
million, or 50.6%, to $4.2
million for the first quarter of 2013 as compared to
$8.5 million for the first quarter of
2012. This decrease was due primarily to a 214 basis point
decrease in the average dividend yield earned to 4.72% for the
first quarter of 2013 as compared to 6.86% for the first quarter of
2012. Additionally, there was a $138.7
million decrease in the average balance of FHLB stock to
$356.5 million for the first quarter
of 2013 from $495.2 million for the
first quarter of 2012. 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.
Interest on Federal funds and other overnight deposits sold
amounted to $872,000 for the first
quarter of 2013 as compared to $568,000 for the first quarter of 2012. The
average balance of Federal funds sold and other overnight deposits
amounted to $1.68 billion for the
first quarter of 2013 as compared to $904.3
million for the first quarter of 2012. The yield
earned on Federal funds sold and other overnight deposits was 0.21%
for the 2013 first quarter and 0.25% for the 2012 first
quarter.
Total interest expense for the quarter ended March 31, 2013 decreased $26.0 million, or 12.1%, to $188.7 million from $214.7
million for the quarter ended March
31, 2012. This decrease was primarily due to a
$4.60 billion, or 11.7%, decrease in
the average balance of total interest-bearing liabilities to
$34.83 billion for the quarter ended
March 31, 2013 as compared to
$39.43 billion for the first quarter
of 2012. The annualized weighted-average cost of total
interest-bearing liabilities was 2.20% for the quarter ended
March 31, 2013 as compared to 2.19%
for the quarter ended March 31,
2012. The decrease in the average balance of total
interest-bearing liabilities was due primarily to a $2.54 billion decrease in the average balance of
borrowings and a $2.05 billion
decrease in the average balance of total deposits.
Interest expense on deposits decreased $18.8 million, or 27.7%, to $49.1 million for the first quarter of 2013 as
compared to $67.9 million for the
first quarter of 2012. The decrease is due to a $2.05 billion decrease in the average balance of
interest-bearing deposits to $22.66
billion for the first quarter of 2013 from $24.70 billion for the first quarter of 2012.
This decrease is also due to a decrease in the average cost of
interest-bearing deposits of 23 basis points to 0.88% for the first
quarter of 2013 from 1.11% for the first quarter of 2012.
The decrease in the average cost of deposits for the first three
months of 2013 reflected lower market interest rates and our
decision to maintain lower deposit rates to restrain any deposit
growth. At March 31, 2013, time
deposits scheduled to mature within one year totaled $7.65 billion with an average cost of
0.86%. These time deposits are scheduled to mature as
follows: $2.74 billion with an
average cost of 0.74% in the second quarter of 2013, $1.93 billion with an average cost of 0.73% in
the third quarter of 2013, $1.47
billion with an average cost of 1.03% in the fourth quarter
of 2013 and $1.51 billion with an
average cost of 1.07% in the first quarter of 2014. 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 $7.3 million to $139.5
million for the first quarter of 2013 from $146.8 million for the first quarter of 2012.
This decrease was due to a $2.54
billion decrease in the average balance of borrowed funds to
$12.18 billion for the first quarter
of 2013 from $14.72 billion for the
first quarter of 2012. This decrease was partially offset by
a 64 basis point increase in the annualized weighted-average cost
of borrowed funds to 4.65% for the first quarter of 2013 as
compared to 4.01% for the first quarter of 2012. The decrease
in the average balance of borrowings was due primarily to the
maturity of short-term borrowings which were not replaced with new
borrowings. In addition, these short-term borrowings had
considerably lower interest rates than the remaining borrowings
and, consequently, as these borrowings matured the overall
weighted-average cost of the remaining borrowings increased.
Borrowings amounted to $12.18
billion at March 31, 2013 with
an average cost of 4.59%. There are no scheduled maturities for
2013.
The provision for loan losses amounted to $20.0 million for the quarter ended March 31, 2013 as compared to $25.0 million for the quarter ended March 31, 2012. The decrease in our provision for
loan losses during the first quarter of 2013 as compared to the
first quarter of 2012 was due primarily to the stabilization of
home prices, a decrease in the size of the loan portfolio and a
decrease in the amount of total delinquent loans.
Non-performing loans, defined as non-accruing loans and accruing
loans delinquent 90 days or more, amounted to $1.14 billion at March 31,
2013 compared with $1.16
billion at December 31, 2012
and $1.06 billion at March 31, 2012. The ratio of non-performing
loans to total loans was 4.35% at March 31,
2013 compared with 4.29% at December
31, 2012 and 3.71% at March
31, 2012. Notwithstanding the decrease in
non-performing loans, the foreclosure process and the time to
complete a foreclosure, while improving, continue to be prolonged,
especially in New York and
New Jersey where 76% of our
non-performing loans are located. 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 $372.0 million at March
31, 2013 as compared to $393.8
million at December 31, 2012
and $385.4 million at March 31, 2012. Loans delinquent 60 to 89
days amounted to $188.8 million at
March 31, 2013 as compared to
$239.3 million at December 31, 2012 and $182.0 million at March
31, 2012. The allowance for loan losses amounted to
$301.1 million at March 31, 2013 as compared to $302.3 million at December
31, 2012. The allowance for loan losses as a percent
of total loans and as a percent of non-performing loans was 1.15%
and 26.50%, respectively at March 31,
2013, as compared to 1.12% and 26.01%, respectively at
December 31, 2012.
Net charge-offs amounted to $21.3
million for first quarter of 2013 as compared to
$18.1 million for the first quarter
of 2012 and $14.2 million for the
linked fourth quarter of 2012. The ratio of net charge-offs
to average loans was 0.32% for first quarter of 2013 as compared to
0.25% for the first quarter of 2012 and 0.21% for the linked fourth
quarter of 2012.
Total non-interest income was $2.5
million for the first quarter of 2013 as compared to
$2.8 million for the same quarter in
2012. Non-interest income is primarily made up of service
fees and charges on deposit and loan accounts.
Total non-interest expense amounted to $81.3 million for the first quarter of 2013 as
compared to $91.6 million for the
same period in 2012.
Compensation and employee benefit costs decreased $541,000, or 1.7%, to $31.6 million for the first quarter of 2013 as
compared to $32.1 million for the
same period in 2012. The decrease in compensation and employee
benefit costs is primarily due to decreases of $737,000 in compensation costs and $374,000 in stock benefit plan expense.
These decreases were partially offset by a $346,000 increase in health plan expense.
At March 31, 2013, we had 1,580
full-time equivalent employees as compared to 1,604 at March 31, 2012.
For the quarter ended March 31,
2013, Federal deposit insurance expense decreased
$11.9 million, or 33.1%, to
$24.1 million from $36.0 million for the quarter ended March 31, 2012. The decrease in Federal
deposit insurance expense for the quarter ended March 31, 2013 is primarily due to the reduction
in the size of our balance sheet.
Other expenses increased $2.0
million for the quarter ended March
31, 2013 to $16.8 million as
compared to $14.8 for the first
quarter of 2012 due primarily to an increase in foreclosed real
estate expenses of $2.1
million. Also included in other expense for the
quarter ended March 31, 2013 were
write-downs on foreclosed real estate and net losses on the sale of
foreclosed real estate of $396,000 as
compared to $1.1 million for the
first quarter of 2012. We sold 33 properties during the first
quarter of 2013 and had 168 properties in foreclosed real estate
with a carrying value of $63.7
million, 55 of which were under contract to sell as of
March 31, 2013. For the first
quarter of 2012, we sold 66 properties and had 110 properties in
foreclosed real estate, of which 53 were under contract to sell as
of March 31, 2012.
Our efficiency ratio was 45.12% for the 2013 first quarter as
compared to 38.66% for the 2012 first quarter. The
calculation of the efficiency ratio is included in a table later in
this press release. Our return on average assets was 0.47%
for the 2013 first quarter as compared to 0.65% for the 2012 first
quarter. Our annualized ratio of non-interest expense to
average total assets for the first quarter of 2013 was 0.80% as
compared to 0.82% for the first quarter of 2012.
Income tax expense amounted to $30.7
million for the first quarter of 2013 compared with an
income tax expense of $47.3 million
for the same quarter in 2012. Our effective tax rate for the first
quarter of 2013 was 39.07% compared with 39.33% for the first
quarter of 2012.
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, further 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. 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
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
|
|
2013
|
2012
|
|
(In
thousands, except share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
Cash and
due from banks
|
|
$
75,048
|
|
$
171,042
|
|
Federal
funds sold and other overnight deposits
|
|
2,680,562
|
|
656,926
|
|
Total cash and cash equivalents
|
|
2,755,610
|
|
827,968
|
|
|
|
|
|
|
|
|
Securities
available for sale:
|
|
|
|
|
|
Mortgage-backed securities
|
|
7,403,340
|
|
8,040,742
|
|
Investment securities
|
|
427,199
|
|
428,057
|
|
Securities
held to maturity:
|
|
|
|
|
|
Mortgage-backed
securities
|
|
2,708,758
|
|
2,976,757
|
|
Investment securities
|
|
39,011
|
|
39,011
|
|
|
Total
securities
|
|
10,578,308
|
|
11,484,567
|
|
|
|
|
|
|
|
|
Loans
|
|
|
26,124,832
|
|
27,090,879
|
|
Net deferred loan costs
|
|
99,471
|
|
97,534
|
|
Allowance for loan losses
|
|
(301,093)
|
|
(302,348)
|
|
|
Net
loans
|
|
25,923,210
|
|
26,886,065
|
|
|
|
|
|
|
|
|
Federal
Home Loan Bank of New York stock
|
|
356,467
|
|
356,467
|
|
Foreclosed
real estate, net
|
|
63,679
|
|
47,322
|
|
Accrued
interest receivable
|
|
80,223
|
|
87,075
|
|
Banking
premises and equipment, net
|
|
73,180
|
|
74,912
|
|
Goodwill
|
|
152,109
|
|
152,109
|
|
Other
assets
|
|
303,912
|
|
679,856
|
|
|
Total Assets
|
|
$
40,286,698
|
|
$
40,596,341
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
Interest-bearing
|
|
$
22,517,066
|
|
$
22,833,992
|
|
Noninterest-bearing
|
|
646,026
|
|
649,925
|
|
|
Total
deposits
|
|
23,163,092
|
|
23,483,917
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
|
6,950,000
|
|
6,950,000
|
|
Federal
Home Loan Bank of New York advances
|
|
5,225,000
|
|
5,225,000
|
|
|
Total
borrowed funds
|
|
12,175,000
|
|
12,175,000
|
|
|
|
|
|
|
|
|
Accrued
expenses and other liabilities
|
|
237,163
|
|
237,616
|
|
|
Total
liabilities
|
|
35,575,255
|
|
35,896,533
|
|
|
|
|
|
|
|
|
Common
stock, $0.01 par value, 3,200,000,000 shares authorized;
|
|
|
|
|
|
|
741,466,555 shares issued; 528,433,972 and
528,211,462 shares
|
|
|
|
|
|
|
outstanding at March 31, 2013 and December 31,
2012
|
|
7,415
|
|
7,415
|
|
Additional
paid-in capital
|
|
4,732,552
|
|
4,730,105
|
|
Retained
earnings
|
|
1,806,185
|
|
1,798,430
|
|
Treasury
stock, at cost; 213,032,583 and 213,255,093 shares
at
|
|
|
|
|
|
|
March 31, 2013 and December 31, 2012
|
|
(1,712,107)
|
|
(1,713,895)
|
|
Unallocated common stock held by the employee stock
ownership plan
|
|
(190,715)
|
|
(192,217)
|
|
Accumulated other comprehensive income, net of
tax
|
|
68,113
|
|
69,970
|
|
|
Total
shareholders' equity
|
|
4,711,443
|
|
4,699,808
|
|
|
Total Liabilities and Shareholders' Equity
|
|
$
40,286,698
|
|
$
40,596,341
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary Consolidated Statements
of Income (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
|
Ended
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
(In
thousands, except per share data)
|
Interest
and Dividend Income:
|
|
|
|
|
|
|
First
mortgage loans
|
|
$
294,390
|
|
$
342,725
|
|
|
Consumer
and other loans
|
|
2,705
|
|
3,383
|
|
|
Mortgage-backed securities held to
maturity
|
|
23,996
|
|
37,809
|
|
|
Mortgage-backed securities available for
sale
|
|
36,911
|
|
52,831
|
|
|
Investment
securities held to maturity
|
|
585
|
|
1,733
|
|
|
Investment
securities available for sale
|
|
2,398
|
|
1,253
|
|
|
Dividends
on Federal Home Loan Bank of New York stock
|
|
4,208
|
|
8,489
|
|
|
Federal
funds sold
|
|
872
|
|
568
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividend
income
|
|
366,065
|
|
448,791
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
Deposits
|
|
49,139
|
|
67,876
|
|
|
Borrowed
funds
|
|
139,543
|
|
146,797
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
188,682
|
|
214,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
177,383
|
|
234,118
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for Loan Losses
|
|
20,000
|
|
25,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income after provision for loan losses
|
|
157,383
|
|
209,118
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income:
|
|
|
|
|
|
|
Service
charges and other income
|
|
2,533
|
|
2,787
|
|
|
Total non-interest
income
|
|
2,533
|
|
2,787
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense:
|
|
|
|
|
|
|
Compensation and employee benefits
|
|
31,601
|
|
32,142
|
|
|
Net
occupancy expense
|
|
8,810
|
|
8,657
|
|
|
Federal
deposit insurance assessment
|
|
24,075
|
|
36,000
|
|
|
Other
expense
|
|
16,769
|
|
14,799
|
|
|
Total non-interest
expense
|
|
81,255
|
|
91,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income tax expense
|
|
78,661
|
|
120,307
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense
|
|
30,730
|
|
47,320
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
47,931
|
|
$
72,987
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Share
|
|
$
0.10
|
|
$
0.15
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Share
|
|
$
0.10
|
|
$
0.15
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
|
497,324,412
|
|
495,983,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
497,364,942
|
|
496,008,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary
Consolidated Average Balance Sheets
(Unaudited)
|
|
|
|
|
|
|
|
|
For the
Three Months Ended March 31,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earnings assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First
mortgage loans, net (1)
|
$
26,182,603
|
|
$
294,390
|
|
4.50
|
%
|
$
28,537,843
|
|
$
342,725
|
|
4.80
|
%
|
|
Consumer
and other loans
|
245,687
|
|
2,705
|
|
4.40
|
|
287,685
|
|
3,383
|
|
4.70
|
|
|
Federal
funds sold and other overnight deposits
|
1,677,616
|
|
872
|
|
0.21
|
|
904,295
|
|
568
|
|
0.25
|
|
|
Mortgage-backed securities at amortized
cost
|
10,292,070
|
|
60,907
|
|
2.37
|
|
12,744,610
|
|
90,640
|
|
2.84
|
|
|
Federal
Home Loan Bank stock
|
356,467
|
|
4,208
|
|
4.72
|
|
495,223
|
|
8,489
|
|
6.86
|
|
|
Investment
securities, at amortized cost
|
452,367
|
|
2,983
|
|
2.64
|
|
402,317
|
|
2,986
|
|
2.97
|
|
|
|
Total
interest-earning assets
|
39,206,810
|
|
366,065
|
|
3.73
|
|
43,371,973
|
|
448,791
|
|
4.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings assets (4)
|
1,288,300
|
|
|
|
|
|
1,515,313
|
|
|
|
|
|
|
|
Total
Assets
|
$
40,495,110
|
|
|
|
|
|
$
44,887,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
$
961,884
|
|
602
|
|
0.25
|
|
$
881,077
|
|
819
|
|
0.37
|
|
|
Interest-bearing transaction accounts
|
2,273,146
|
|
2,135
|
|
0.38
|
|
2,006,461
|
|
3,266
|
|
0.65
|
|
|
Money
market accounts
|
6,460,700
|
|
5,586
|
|
0.35
|
|
8,350,175
|
|
12,657
|
|
0.61
|
|
|
Time
deposits
|
12,959,500
|
|
40,816
|
|
1.28
|
|
13,464,569
|
|
51,134
|
|
1.53
|
|
|
|
Total
interest-bearing deposits
|
22,655,230
|
|
49,139
|
|
0.88
|
|
24,702,282
|
|
67,876
|
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
6,950,000
|
|
77,054
|
|
4.50
|
|
6,950,000
|
|
78,182
|
|
4.52
|
|
|
Federal
Home Loan Bank of New York advances
|
5,225,000
|
|
62,489
|
|
4.85
|
|
7,774,195
|
|
68,615
|
|
3.55
|
|
|
|
Total
borrowed funds
|
12,175,000
|
|
139,543
|
|
4.65
|
|
14,724,195
|
|
146,797
|
|
4.01
|
|
|
|
Total
interest-bearing liabilities
|
34,830,230
|
|
188,682
|
|
2.20
|
|
39,426,477
|
|
214,673
|
|
2.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
631,174
|
|
|
|
|
|
598,789
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
299,017
|
|
|
|
|
|
248,758
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
930,191
|
|
|
|
|
|
847,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
35,760,421
|
|
|
|
|
|
40,274,024
|
|
|
|
|
|
Shareholders' equity
|
4,734,689
|
|
|
|
|
|
4,613,262
|
|
|
|
|
|
|
|
Total
Liabilities and Shareholders' Equity
|
$
40,495,110
|
|
|
|
|
|
$
44,887,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income/net interest rate spread (2)
|
|
|
$
177,383
|
|
1.53
|
|
|
|
$
234,118
|
|
1.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest-earning assets/net interest margin (3)
|
$
4,376,580
|
|
|
|
1.78
|
%
|
$
3,945,496
|
|
|
|
2.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing liabilities
|
|
|
|
|
1.13
|
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 $111.8 million and $110.5
million
|
|
|
|
for the
quarters ended March 31, 2013 and 2012, respectively.
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. and Subsidiary
Calculation of Efficiency Ratio and Book Value
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or
for the Quarter Ended
|
|
|
|
|
March
31, 2013
|
|
Dec.
31, 2012
|
|
Sept.
30, 2012
|
|
June
30, 2012
|
|
March
31, 2012
|
|
|
(Dollars
in thousands, except per share data)
|
Efficiency Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
$
177,383
|
|
$
192,264
|
|
$
203,288
|
|
$
224,253
|
|
$
234,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest income
|
2,533
|
|
2,733
|
|
3,017
|
|
2,924
|
|
2,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
$
179,916
|
|
$
194,997
|
|
$
206,305
|
|
$
227,177
|
|
$
236,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest expense
|
$
81,255
|
|
$
87,556
|
|
$
93,877
|
|
$
83,571
|
|
$
91,598
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related costs
|
(69)
|
|
(54)
|
|
(6,073)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest operating
expense
|
$
81,186
|
|
$
87,502
|
|
$
87,804
|
|
$
83,571
|
|
$
91,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio (1)
|
45.12%
|
|
44.87%
|
|
42.56%
|
|
36.79%
|
|
38.66%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book
Value Calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
$
4,711,443
|
|
$
4,699,808
|
|
$
4,712,085
|
|
$
4,663,442
|
|
$
4,617,509
|
|
|
Goodwill
and other intangible assets
|
(153,970)
|
|
(154,218)
|
|
(154,470)
|
|
(154,722)
|
|
(155,033)
|
|
|
Tangible
shareholders' equity
|
$
4,557,473
|
|
$
4,545,590
|
|
$
4,557,615
|
|
$
4,508,720
|
|
$
4,462,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value
Share Computation:
|
|
|
|
|
|
|
|
|
|
|
|
Issued
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
|
Treasury shares
|
(213,032,583)
|
|
(213,255,093)
|
|
(213,272,666)
|
|
(213,333,580)
|
|
(213,333,580)
|
|
|
Shares outstanding
|
528,433,972
|
|
528,211,462
|
|
528,193,889
|
|
528,132,975
|
|
528,132,975
|
|
|
Unallocated ESOP
shares
|
(30,549,363)
|
|
(30,789,909)
|
|
(31,030,455)
|
|
(31,271,001)
|
|
(31,511,547)
|
|
|
Unvested RRP
shares
|
-
|
|
-
|
|
-
|
|
(3,010)
|
|
(4,500)
|
|
|
Shares in trust
|
(394,926)
|
|
(391,266)
|
|
(361,251)
|
|
(325,901)
|
|
(299,493)
|
|
|
Book value shares
|
497,489,683
|
|
497,030,287
|
|
496,802,183
|
|
496,533,063
|
|
496,317,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share
|
$
9.47
|
|
$
9.46
|
|
$
9.48
|
|
$
9.39
|
|
$
9.30
|
|
|
Tangible
book value per share
|
9.16
|
|
9.15
|
|
9.17
|
|
9.08
|
|
8.99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 31,
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized
|
|
Estimated
|
|
Unrealized
|
|
Cost
|
|
Fair
Value
|
|
Gain/(Loss)
|
|
|
|
(Dollars
in thousands)
|
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
FHLMC
|
$
1,502,021
|
|
$
1,598,287
|
|
$
96,266
|
FNMA
|
777,203
|
|
833,616
|
|
56,413
|
FHLMC and FNMA CMO's
|
358,658
|
|
380,557
|
|
21,899
|
GNMA
|
70,876
|
|
74,146
|
|
3,270
|
Total
mortgage-backed securities
|
2,708,758
|
|
2,886,606
|
|
177,848
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
United States GSE
debt
|
39,011
|
|
44,946
|
|
5,935
|
Total investment
securities
|
39,011
|
|
44,946
|
|
5,935
|
|
|
|
|
|
|
Total
held to maturity
|
$
2,747,769
|
|
$
2,931,552
|
|
$
183,783
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed securities:
|
|
|
|
|
|
FHLMC
|
$
2,496,025
|
|
$
2,564,137
|
|
$
68,112
|
FNMA
|
3,719,056
|
|
3,800,167
|
|
81,111
|
FHLMC and FNMA CMO's
|
51,569
|
|
53,869
|
|
2,300
|
GNMA
|
948,481
|
|
985,167
|
|
36,686
|
Total
mortgage-backed securities
|
7,215,131
|
|
7,403,340
|
|
188,209
|
|
|
|
|
|
|
Investment securities:
|
|
|
|
|
|
Corporate debt
|
406,024
|
|
419,742
|
|
13,718
|
Equity securities
|
6,857
|
|
7,457
|
|
600
|
Total investment
securities
|
412,881
|
|
427,199
|
|
14,318
|
|
|
|
|
|
|
Total available for
sale
|
$
7,628,012
|
|
$
7,830,539
|
|
$
202,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson
City Bancorp, Inc. Other Financial Data
|
|
|
|
|
|
Loan
Data at March 31, 2013:
|
|
|
|
|
|
|
|
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
|
|
$
983,565
|
|
2,763
|
|
3.77%
|
|
$
25,062,806
|
|
60,347
|
95.94%
|
FHA/VA
|
|
134,406
|
|
553
|
|
0.51%
|
|
663,461
|
|
3,417
|
2.54%
|
PMI
|
|
6,490
|
|
22
|
|
0.03%
|
|
131,868
|
|
438
|
0.50%
|
Construction
|
|
2,723
|
|
2
|
|
0.01%
|
|
2,723
|
|
2
|
0.01%
|
Commercial
|
|
3,008
|
|
5
|
|
0.01%
|
|
29,145
|
|
71
|
0.11%
|
Total mortgage loans
|
|
1,130,192
|
|
3,345
|
|
4.33%
|
|
25,890,003
|
|
64,275
|
99.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity loans
|
|
5,068
|
|
60
|
|
0.02%
|
|
215,009
|
|
5,953
|
0.82%
|
Other
loans
|
|
1,020
|
|
2
|
|
-
|
|
19,820
|
|
1,977
|
0.08%
|
Total
|
|
$
1,136,280
|
|
3,407
|
|
4.35%
|
|
$
26,124,832
|
|
72,205
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real estate at March 31,
2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
|
|
|
Number
Under
|
|
|
Number
|
|
Value
|
|
|
Contract of Sale
|
|
|
|
|
(Dollars
in thousands)
|
|
|
|
Foreclosed
real estate
|
|
168
|
|
$
63,679
|
|
|
55
|
- During the first three months of 2013, we sold 33 foreclosed
properties. Write-downs on foreclosed real estate and net losses on
the sale of foreclosed real estate amounted to $396,000 for the first three months of
2013.
Hudson
City Bancorp, Inc. and Subsidiary
|
Other
Financial Data
|
(Unaudited)
|
|
|
|
|
|
At or
for the Quarter Ended
|
|
|
|
|
|
March
31, 2013
|
|
Dec.
31, 2012
|
|
Sept.
30, 2012
|
|
June
30, 2012
|
|
March
31, 2012
|
|
(Dollars in thousands, except per share
data)
|
Net
interest income
|
$
177,383
|
|
$
192,264
|
|
$
203,288
|
|
$
224,253
|
|
$
234,118
|
Provision
for loan losses
|
20,000
|
|
25,000
|
|
20,000
|
|
25,000
|
|
25,000
|
Non-interest income
|
2,533
|
|
2,733
|
|
3,017
|
|
2,924
|
|
2,787
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee
benefits
|
31,601
|
|
33,218
|
|
33,883
|
|
30,401
|
|
32,142
|
FDIC insurance assessment
|
24,075
|
|
29,750
|
|
30,250
|
|
27,695
|
|
36,000
|
Other non-interest
expense
|
25,579
|
|
24,588
|
|
29,744
|
|
25,475
|
|
23,456
|
Total non-interest expense
|
81,255
|
|
87,556
|
|
93,877
|
|
83,571
|
|
91,598
|
Income
before income tax expense
|
78,661
|
|
82,441
|
|
92,428
|
|
118,606
|
|
120,307
|
Income tax
expense
|
30,730
|
|
34,493
|
|
36,496
|
|
46,330
|
|
47,320
|
Net
income
|
$
47,931
|
|
$
47,948
|
|
$
55,932
|
|
$
72,276
|
|
$
72,987
|
Total
assets
|
$
40,286,698
|
|
$
40,596,341
|
|
$
41,898,593
|
|
$
43,590,185
|
|
$
44,138,584
|
Loans,
net
|
25,923,210
|
|
26,886,065
|
|
27,533,618
|
|
27,983,559
|
|
28,534,080
|
Mortgage-backed securities
|
10,112,098
|
|
11,017,499
|
|
12,028,452
|
|
12,866,850
|
|
12,893,495
|
Other
securities
|
466,210
|
|
467,068
|
|
467,418
|
|
456,601
|
|
357,619
|
Deposits
|
23,163,092
|
|
23,483,917
|
|
24,022,181
|
|
24,644,548
|
|
25,121,541
|
Borrowings
|
12,175,000
|
|
12,175,000
|
|
12,925,000
|
|
13,425,000
|
|
14,175,000
|
Shareholders' equity
|
4,711,443
|
|
4,699,808
|
|
4,712,085
|
|
4,663,442
|
|
4,617,509
|
Performance Data:
|
|
|
|
|
|
|
|
|
|
Return on
average assets (1)
|
0.47%
|
|
0.47%
|
|
0.53%
|
|
0.66%
|
|
0.65%
|
Return on
average equity (1)
|
4.05%
|
|
4.04%
|
|
4.74%
|
|
6.19%
|
|
6.33%
|
Net
interest rate spread(1)
|
1.53%
|
|
1.75%
|
|
1.80%
|
|
1.91%
|
|
1.95%
|
Net
interest margin (1)
|
1.78%
|
|
1.97%
|
|
2.02%
|
|
2.12%
|
|
2.15%
|
Non-interest expense to average assets (1)
(4)
|
0.80%
|
|
0.85%
|
|
0.88%
|
|
0.77%
|
|
0.82%
|
Compensation and benefits to total revenue
(5)
|
17.56%
|
|
17.04%
|
|
16.42%
|
|
13.38%
|
|
13.57%
|
Operating
efficiency ratio (2)
|
45.12%
|
|
44.87%
|
|
42.56%
|
|
36.79%
|
|
38.66%
|
Dividend
payout ratio
|
80.00%
|
|
80.00%
|
|
72.73%
|
|
53.33%
|
|
53.33%
|
Per
Common Share Data:
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share
|
$0.10
|
|
$0.10
|
|
$0.11
|
|
$0.15
|
|
$0.15
|
Diluted
earnings per common share
|
$0.10
|
|
$0.10
|
|
$0.11
|
|
$0.15
|
|
$0.15
|
Book value
per share (3)
|
$9.47
|
|
$9.46
|
|
$9.48
|
|
$9.39
|
|
$9.30
|
Tangible
book value per share (3)
|
$9.16
|
|
$9.15
|
|
$9.17
|
|
$9.08
|
|
$8.99
|
Dividends
per share
|
$0.08
|
|
$0.08
|
|
$0.08
|
|
$0.08
|
|
$0.08
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Equity to
total assets (consolidated)
|
11.69%
|
|
11.58%
|
|
11.25%
|
|
10.70%
|
|
10.46%
|
Tier 1
leverage capital (Bank)
|
10.20%
|
|
10.09%
|
|
9.75%
|
|
9.44%
|
|
9.17%
|
Total
risk-based capital (Bank)
|
22.77%
|
|
21.59%
|
|
21.02%
|
|
20.66%
|
|
20.39%
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Full-time
equivalent employees
|
1,580
|
|
1,622
|
|
1,608
|
|
1,599
|
|
1,604
|
Number of
banking offices
|
135
|
|
135
|
|
135
|
|
135
|
|
135
|
Asset
Quality Data:
|
|
|
|
|
|
|
|
|
|
Total
non-performing loans
|
$
1,136,280
|
|
$
1,162,527
|
|
$
1,143,125
|
|
$
1,093,876
|
|
$
1,064,585
|
Number of
non-performing loans
|
3,407
|
|
3,432
|
|
3,339
|
|
3,206
|
|
3,109
|
Total
number of loans
|
72,205
|
|
74,328
|
|
76,241
|
|
77,636
|
|
79,303
|
Total
non-performing assets
|
$
1,199,959
|
|
$
1,209,849
|
|
$
1,188,461
|
|
$
1,134,444
|
|
$
1,099,355
|
Non-performing loans to total loans
|
4.35%
|
|
4.29%
|
|
4.12%
|
|
3.88%
|
|
3.71%
|
Non-performing assets to total assets
|
2.98%
|
|
2.98%
|
|
2.84%
|
|
2.60%
|
|
2.49%
|
Allowance
for loan losses
|
$
301,093
|
|
$
302,348
|
|
$
291,573
|
|
$
287,901
|
|
$
280,713
|
Allowance
for loan losses to non-performing loans
|
26.50%
|
|
26.01%
|
|
25.51%
|
|
26.32%
|
|
26.37%
|
Allowance
for loan losses to total loans
|
1.15%
|
|
1.12%
|
|
1.05%
|
|
1.02%
|
|
0.98%
|
Provision
for loan losses
|
$
20,000
|
|
$
25,000
|
|
$
20,000
|
|
$
25,000
|
|
$
25,000
|
Net
charge-offs
|
$
21,255
|
|
$
14,225
|
|
$
16,328
|
|
$
17,812
|
|
$
18,078
|
Ratio of
net charge-offs to average loans (1)
|
0.32%
|
|
0.21%
|
|
0.24%
|
|
0.25%
|
|
0.25%
|
Net losses
(gains) on foreclosed real estate
|
$
396
|
|
$
565
|
|
$
(13)
|
|
$
202
|
|
$
1,128
|
(1) Ratios are annualized.
|
(2) See
page 12 for a calculation of our Operating Efficiency
Ratios
|
(3) See
page 12 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
|
|
|
|
|
|
|
SOURCE Hudson City Bancorp, Inc.