PARAMUS, N.J., Jan. 29, 2014 /PRNewswire/ -- Hudson City
Bancorp, Inc. (NASDAQ: HCBK) (the "Company"), the holding company
for Hudson City Savings Bank (the "Bank"), reported today net
income of $45.8 million for the
quarter ended December 31, 2013 as
compared to net income of $47.9
million for the quarter ended December 31, 2012. Diluted earnings per
share amounted to $0.09 for the
fourth quarter of 2013 as compared to diluted earnings per share of
$0.10 for the fourth quarter of
2012. For the year ended December 31,
2013, the Company reported net income of $185.2 million as compared to net income of
$249.1 million for the year ended
December 31, 2012. Diluted
earnings per share were $0.37 for the
year ended December 31, 2013 as
compared to diluted earnings per share of $0.50 for the year ended December 31, 2012.
The Company also reported today that the Board of Directors
declared a quarterly cash dividend of $0.04 per share payable on March 3, 2014 to shareholders of record on
February 12, 2014.
Financial highlights for the fourth quarter of 2013 are as
follows:
- The Bank's Tier 1 leverage capital ratio increased to 10.82% at
December 31, 2013 as compared to
10.09% at December 31, 2012.
- Non-performing loans decreased $113.3
million to $1.05 billion at
December 31, 2013 as compared to
$1.16 billion at December 31, 2012. Early stage loan delinquencies
(defined as loans that are 30 to 89 days delinquent) decreased
$159.7 million to $473.4 million at December
31, 2013 from $633.1 million
at December 31, 2012.
- There was no provision for loan losses for the fourth quarter
of 2013 as compared to $25.0 million
for the fourth quarter of 2012 reflecting improving home prices and
economic conditions and decreases in total delinquent loans and
total loans. The provision for loan losses in the fourth quarter of
2012 included a $5.0 million
provision related to Hurricane Sandy.
- Our interest rate spread and net interest margin were 1.20% and
1.47%, respectively, for the fourth quarter of 2013 as compared to
1.75% and 1.97%, respectively, for the fourth quarter of 2012. For
the linked third quarter of 2013, our interest rate spread and net
interest margin were 1.22% and 1.48%, respectively.
- FDIC expense decreased $50.2
million during 2013 due to decreases in our assessment rate
and a reduction in the size of our balance sheet.
- Federal funds sold and other overnight deposits increased
$3.53 billion to $4.19 billion at December
31, 2013 from $656.9 million
at December 31, 2012 primarily due to
repayments of mortgage-related assets.
- Total deposits decreased $2.01
billion, or 8.6%, to $21.47
billion at December 31, 2013
from $23.48 billion at December 31, 2012 due to our decision to maintain
lower deposit rates allowing us to manage deposit reductions at a
time when we are experiencing excess liquidity from prepayment
activity on mortgage-related assets and limited investment
opportunities with attractive yields.
Ronald E. Hermance, Jr., the
Company's Chairman and Chief Executive Officer commented, "Our net
interest margin was 1.47% for the fourth quarter of 2013 as
compared to 1.48% for the linked third quarter. This decrease
in our net interest margin was less than the decreases experienced
in recent quarters as market interest rates continued to increase
during the fourth quarter. The yield on the 10 year constant
maturity U.S. Treasury Note increased to 3.04% at December 31, 2013 from 2.64% at September 30, 2013 and 1.78% at December 31, 2012. However, we believe
market interest rates still remain too low to compel us to pursue
any balance sheet growth in the near-term. As a result,
assets decreased $1.99 billion during
2013 allowing us to increase our Tier 1 leverage capital ratio to
10.82%. This capital can be used to support future growth and
strategic initiatives."
Mr. Hermance continued, "Our asset quality continues to improve.
Total non-performing loans decreased $22.0 million during the fourth quarter of
2013. Total delinquencies have decreased $273.0 million since December 31, 2012. In addition, total loans
decreased $2.98 billion during 2013
as the low market interest rates continued to result in elevated
levels of loan prepayments."
Statement of Financial Condition Summary
Total assets decreased $1.99
billion, or 4.9%, to $38.61
billion at December 31, 2013
from $40.60 billion at December 31, 2012. The decrease in total assets
reflected a $2.95 billion decrease in
net loans, a $2.07 billion decrease
in total mortgage-backed securities and a $315.4 million decrease in other assets,
partially offset by a $3.50 billion
increase in cash and cash equivalents.
Total cash and cash equivalents increased $3.50 billion to $4.32
billion at December 30, 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 in the current low interest rate
environment as available short term reinvestment opportunities
continue to carry low yields, and medium and longer term
opportunities are creating more significant duration risk at
relatively low yields despite the recent increase in market
interest rates. In addition, during 2013 we received
additional cash from previously accrued tax refunds of $364.9 million. Other assets decreased
$315.4 million to $364.5 million at December
31, 2013 from $679.9 million
at December 31, 2012 due primarily to
the receipt of the accrued tax refund noted above.
Net loans amounted to $23.94
billion at December 31, 2013
as compared to $26.89 billion at
December 31, 2012. During 2013,
our loan production (origination and purchases) amounted to
$3.59 billion as compared to
$5.06 billion for 2012. Loan
production was offset by principal repayments of $6.39 billion in 2013, as compared to principal
repayments of $7.13 billion in
2012. Loan production declined during 2013 which reflects our
limited 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 combined
with lower levels of new production. While loan refinancing
activity declined during 2013 as market interest rates increased,
loan repayments remained elevated.
Total mortgage-backed securities decreased $2.07 billion to $8.95
billion at December 31, 2013
from $11.02 billion at December 31, 2012. The decrease in
mortgage-backed securities reflected continued elevated levels of
repayments during 2013. Repayments amounted to $3.21 billion for 2013 as compared to
$3.69 billion for 2012.
Repayments were partially offset by purchases of $1.67 billion of mortgage-backed securities
issued by U.S. government-sponsored entities ("GSEs") during 2013.
Additionally, there were sales of mortgage-backed securities
with an amortized cost of $316.2
million during 2013.
Total liabilities decreased $2.04
billion, or 5.7%, to $33.86
billion at December 31, 2013
from $35.90 billion at December 31, 2012 due entirely to a decrease in
deposits. The decrease in deposits reflects our decision to
maintain lower deposit rates allowing us to manage deposit
reductions at a time when we are experiencing excess liquidity from
prepayment activity on mortgage-related assets and limited
investment opportunities with attractive yields.
Total shareholders' equity increased $42.8 million to $4.74
billion at December 31, 2013
as compared to $4.70 billion at
December 31, 2012. The increase was
primarily due to net income of $185.2
million, partially offset by cash dividends paid to common
shareholders of $99.5 million and a
$63.6 million change in accumulated
other comprehensive income. At December 31, 2013, our consolidated shareholders'
equity to asset ratio was 12.28% and our tangible book value per
share was $9.21.
Accumulated other comprehensive income amounted to $6.3 million at December
31, 2013 as compared to accumulated other comprehensive
income of $70.0 million at
December 31, 2012. The
resulting $63.7 million change in
accumulated other comprehensive income primarily reflects a
decrease in the net unrealized gain on securities available for
sale at December 31, 2013 as compared
to December 31, 2012, due primarily
to an increase in market interest rates during 2013 as well as a
decrease in the size of our available for sale securities
portfolio.
As previously announced, on August 27,
2012, the Company entered into a definitive merger agreement
with M&T Bank Corporation ("M&T") and Wilmington Trust
Corporation ("WTC"), a wholly owned subsidiary of M&T,
providing for the merger of the Company with and into WTC (the
"Merger"). The Merger remains subject to the receipt of the
required regulatory approvals and other customary closing
conditions. On December 17,
2013, M&T and the Company announced that additional time
will be required to obtain a regulatory determination on the
applications necessary to complete the proposed Merger as M&T
continues to address the Federal Reserve's concerns with its
BSA/AML procedures, systems and processes, and that the earliest
the Merger could be completed is the latter half of 2014. As
a result, M&T and the Company amended the merger agreement, (i)
extending the date after which either party may elect to terminate
the merger agreement if the Merger has not yet been completed, from
January 31, 2014 to December 31, 2014 and (ii) allowing the Company
to terminate the merger agreement if the Company reasonably
determines that M&T is unlikely to be able to obtain the
requisite regulatory approvals in time to permit the closing to
occur on or prior to December 31,
2014. There can be no assurances that the Merger will be
completed by that date.
The amendment to the merger agreement allows the Company to
pursue its Strategic Plan initiatives during the pendency of the
Merger without requiring the Company to obtain prior approval from
M&T. The Strategic Plan includes initiatives such as secondary
mortgage market operations, commercial real estate lending, the
introduction of small business banking products and developing a
more robust suite of consumer banking products. Many of the
initiatives require significant lead time for full implementation
and roll out to our customers. We expect commencement of the roll
out of the prioritized initiatives during 2014.
As part of our Strategic Plan, we are continuing to explore ways
to reduce our interest rate risk while strengthening our balance
sheet, which may include a further restructuring of our balance
sheet during 2014. The Company previously completed a series
of restructuring transactions in 2011 that reduced higher-cost
structured borrowings on the Company's balance sheet.
Management is currently considering a variety of different
restructuring alternatives, including whether to restructure all or
various portions of our borrowed funds and various alternatives for
replacement funding. No decision has been made at this time
regarding the timing, structure and scope of any restructuring
transaction. Decisions regarding any restructuring transaction are
dependent upon, among other things, market interest rates, overall
economic conditions and the status of the Merger. However,
any such transaction will likely not occur before the second half
of 2014. Similar to the 2011 restructuring transactions, we
expect a restructuring to result in a net loss and reduction of
stockholder equity, though we also expect an improvement in net
interest margin and future earnings prospects. Any
restructuring will focus on the prospects for long-term overall
earnings stability and growth.
Statement of Income Summary
The Federal Open Market Committee of the Board of Governors of
the Federal Reserve System (the "FOMC") noted that economic
activity has been expanding at a moderate pace. The FOMC
noted that some indicators of labor market conditions have shown
further improvement in recent months, but the unemployment rate,
which has declined, remains elevated. Household spending and
business fixed investment advanced, while the housing sector has
slowed in recent months. The national unemployment rate decreased
to 6.7% in December 2013 from 7.8% in
December 2012. The FOMC decided to
maintain the overnight lending target rate at zero to 0.25% during
the fourth quarter of 2013 and stated that exceptionally low levels
for the federal funds rate will be appropriate for at least as long
as the unemployment rate remains above 6.5%. The FOMC anticipates
that it likely will be appropriate to maintain the current federal
funds rate well past the time that the unemployment rate declines
below 6.5%, especially if projected inflation continues to run
below the FOMC's 2% longer-run goal.
The FOMC decided to reduce the rate of purchases of agency
mortgage-backed securities to $35.0
billion per month from $40.00
billion per month and to reduce purchases of longer-term
Treasury securities to $40.0 billion
per month from $45.0 billion per
month. However, the FOMC noted that the additional asset
purchases even at a reduced pace will still increase their holdings
of longer-term securities. The FOMC also noted that its sizeable
and increasing holdings of longer-term securities should maintain
downward pressure on longer-term interest rates, support mortgage
markets, promote a stronger economy and help to ensure that
inflation, over time, is at the rate most consistent with the
FOMC's dual mandate regarding both inflation and unemployment.
Net interest income decreased $56.4
million, or 29.3%, to $135.9
million for the fourth quarter of 2013 from $192.3 million for the fourth quarter of 2012
reflecting the overall decrease in the average balance of
interest-earning assets and interest-bearing liabilities, the
continued low interest rate environment and an increase in the
average balance of Federal funds sold and other overnight
deposits. Our interest rate spread decreased to 1.20% for the
fourth quarter of 2013 from 1.75% for the fourth quarter of
2012. Our net interest margin was 1.47% for the fourth
quarter of 2013 as compared 1.97% for the fourth quarter of
2012.
Net interest income decreased $241.4
million, or 28.3%, to $612.5
million for 2013 from $853.9
million for 2012. Our interest rate spread decreased
53 basis points to 1.32% for 2013 as compared to 1.85% for
2012. Our net interest margin decreased 47 basis points to
1.59% for 2013 as compared to 2.06% for 2012. The decrease in
our interest rate spread and net interest margin for 2013 is
primarily due to repayments of higher yielding assets due to the
low interest rate environment and an increase in the average
balance of Federal funds sold and other overnight deposits.
Total interest and dividend income for the fourth quarter of
2013 decreased $66.9 million, or
17.2%, to $321.3 million from
$388.2 million for the fourth 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 $1.78 billion, or 4.5%, to
$37.93 billion for the fourth quarter
of 2013 from $39.71 billion for the
fourth quarter of 2012 as well as a decrease in the annualized
weighted-average yield on total interest earning assets. The
decrease in the average balance of total interest-earning assets
was due primarily to repayments of mortgage-related assets during
2013 as a result of the low interest rate environment and our
decision not to reinvest in low yielding, long term assets. The
annualized weighted-average yield on total interest-earning assets
was 3.39% for the fourth quarter of 2013 as compared to 3.91% for
the fourth quarter of 2012. The decrease in the annualized
weighted average yield of interest-earning assets was due to lower
market interest rates earned on mortgage-related assets and a
$3.47 billion increase in the average
balance of Federal funds sold and other overnight deposits to
$3.86 billion which had an average
yield of 0.28% during the fourth quarter of 2013.
Total interest and dividend income for the year ended
December 31, 2013 decreased
$311.9 million, or 18.6%, to
$1.36 billion from $1.67 billion for the year ended December 31, 2012. The decrease in total interest
and dividend income was primarily due to a $2.79 billion, or 6.7%, decrease in the average
balance of total interest-earning assets to $38.64 billion for the year ended December 31, 2013 from $41.43 billion for the year ended December 31, 2012. The decrease in total
interest and dividend income was also due to a decrease of 52 basis
points in the weighted-average yield on total interest-earning
assets to 3.52% for 2013 from 4.04% for 2012.
Interest on first mortgage loans decreased $50.5 million, or 16.3%, to $259.3 million for the fourth quarter of 2013
from $309.8 million for the fourth
quarter of 2012. This was primarily due to a $3.06 billion decrease in the average balance of
first mortgage loans to $23.95
billion for the fourth quarter of 2013 from $27.01 billion for the same quarter in
2012. The decrease in interest income on mortgage loans was
also due to a 26 basis point decrease in the annualized
weighted-average yield to 4.33% for the fourth quarter of 2013 from
4.59% for the fourth quarter of 2012.
For the year ended December 31,
2013, interest on first mortgage loans decreased
$205.7 million, or 15.7%, to
$1.10 billion from $1.31 billion for the year ended December 31, 2012. This was primarily due
to a $2.76 billion decrease in the
average balance of first mortgage loans to $24.92 billion for the year ended December 31, 2013 from $27.68 billion for the year ended December 31, 2012. The decrease in interest
income on mortgage loans was also due to a 30 basis point decrease
in the weighted-average yield to 4.43% for the year ended
December 31, 2013 from 4.73% for the
year ended December 31,
2012.
The decrease in the average yield earned on first mortgage loans
during the three months and year ended December 31, 2013 was due to continued mortgage
refinancing activity and the rates on newly originated mortgage
loans which have been below the average yield on our portfolio,
reflecting the continuation of low market rates.
Consequently, the average yield on our loan portfolio continued to
decline in the fourth quarter of 2013. 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 $15.5 million to $52.0
million for the fourth quarter of 2013 from $67.5 million for the fourth quarter of
2012. This decrease was due primarily to a $2.03 billion decrease in the average balance of
mortgage-backed securities to $9.21
billion for the fourth quarter of 2013 from $11.24 billion for the fourth quarter of 2012.
The decrease in interest on mortgage-backed securities was also due
to a 14 basis point decrease in the annualized weighted-average
yield to 2.26% for the fourth quarter of 2013 from 2.40% for the
fourth quarter of 2012.
Interest on mortgage-backed securities decreased $97.5 million to $216.5
million for the year ended December
31, 2013 from $314.0 million
for the year ended December 31,
2012. This decrease was due primarily to a $2.24 billion decrease in the average balance of
mortgage-backed securities to $9.79
billion for 2013 from $12.03
billion for 2012. The decrease in interest on
mortgage-backed securities was also due to a 40 basis point
decrease in the weighted-average yield to 2.21% for 2013 from 2.61%
for 2012.
The decrease in the average yield earned on mortgage-backed
securities during the three months and year ended December 31, 2013 was 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. The decrease in the average balance of mortgage-backed
securities during these same periods was due primarily to elevated
levels of principal repayments in the current low interest rate
environment.
Interest on investment securities decreased $1.6 million to $1.4
million for the fourth quarter of 2013 as compared to
$3.0 million for the fourth quarter
of 2012. This decrease was due to a 99 basis point decrease
in the annualized weighted-average yield to 1.62% for the fourth
quarter of 2013 from 2.61% for the fourth quarter of 2012.
The decrease in the average yield earned reflects current
market interest rates. This decrease in interest on
investment securities was also due to a $108.5 million decrease in the average balance of
investment securities to $344.2
million for the fourth quarter of 2013 from $452.7 million for the fourth quarter of
2012. The decrease in the average balance of investment
securities was due to the sale of corporate bonds with an amortized
cost of $405.7 million partially
offset by the purchase of $298.0
million of GSE securities.
For the year ended December 31,
2013, interest on investment securities decreased
$3.0 million to $8.6 million from $11.6
million for the year ended December
31, 2012. This decrease was due to a 63 basis point
decrease in the weighted-average yield to 2.08% for 2013 from 2.71%
for 2012. The decrease in the average yield earned reflects
current market interest rates. This decrease was also due to
a $14.3 million decrease in the
average balance of investment securities to $415.2 million for 2013 from $429.5 million for 2012.
Dividends on FHLB stock decreased $1.1
million, or 23.9%, to $3.5
million for the fourth quarter of 2013 as compared to
$4.6 million for the fourth quarter
of 2012. This decrease was due primarily to a 90 basis point
decrease in the average dividend yield earned to 4.03% for the
fourth quarter of 2013 from 4.93% for the fourth quarter of
2012. Additionally, the average balance of FHLB stock
decreased $25.2 million to
$347.1 million for the fourth quarter
of 2013 from $372.3 million for the
fourth quarter of 2012.
Dividends on FHLB stock decreased $8.8
million, or 37.4%, to $14.7
million for the year ended December
31, 2013 from $23.5 million
for the year ended December 31,
2012. The decrease was primarily due to a 132 basis point
decrease in the average dividend yield earned to 4.20% for 2013
from 5.52% for 2012. In addition, there was a $76.0 million decrease in the average balance of
FHLB stock to $349.6 million for 2013
as compared to $425.6 million for
2012.
The decrease in the average balance of FHLB stock for the
quarter and year ended December 31,
2013 as compared to the corresponding periods in 2012 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 sold and other overnight deposits
amounted to $2.7 million for the
fourth quarter of 2013 as compared to $243,000 for the fourth quarter of 2012.
The average balance of Federal funds sold and other overnight
deposits amounted to $3.86 billion
for the fourth quarter of 2013 as compared to $386.3 million for the fourth quarter of
2012. The yield earned on Federal funds sold and other
overnight deposits was 0.28% for the 2013 fourth quarter and 0.25%
for the 2012 fourth quarter.
Interest on Federal funds sold and other overnight deposits
amounted to $7.4 million for the year
ended December 31, 2013 as compared
to $1.4 million for the year ended
December 31, 2012. The average
balance of Federal funds sold and other overnight deposits amounted
to $2.93 billion for 2013 as compared
to $591.1 million for 2012. The
yield earned on Federal funds and other overnight deposits was
0.25% for 2013 and 0.24% for 2012.
The increase in the average balance of Federal funds sold and
other overnight deposits for the three months and year ended
December 31, 2013 was due primarily
to the elevated levels of repayments on mortgage-related assets and
the lack of attractive reinvestment opportunities due to low market
interest rates.
Total interest expense for the quarter ended December 31, 2013 decreased $10.5 million, or 5.4%, to $185.4 million from $195.9
million for the quarter ended December 31, 2012. This decrease was
primarily due to a $2.35 billion, or
6.6%, decrease in the average balance of total interest-bearing
liabilities to $33.24 billion for the
quarter ended December 31, 2013 from
$35.59 billion for the quarter ended
December 31, 2012. This was
partially offset by an increase in the annualized weighted-average
cost of total interest-bearing liabilities to 2.19% for the quarter
ended December 31, 2013 as compared
to 2.16% for the quarter ended December
31, 2012. The decrease in the average balance of total
interest-bearing liabilities was due to a $2.01 billion decrease in the average balance of
total deposits and a $345.7 million
decrease in the average balance of borrowings.
For the year ended December 31,
2013 total interest expense decreased $70.4 million, or 8.6%, to $748.7 million from $819.1
million for the year ended December
31, 2012. This decrease was primarily due to a
$3.34 billion, or 8.9%, decrease in
the average balance of total interest-bearing liabilities to
$34.08 billion for the year ended
December 31, 2013 compared with
$37.42 billion for the year ended
December 31, 2012. The
weighted-average cost of total interest-bearing liabilities was
2.20% for the year ended December 31,
2013 as compared to 2.19% for the year ended December 31, 2012. The decrease in the
average balance of total interest-bearing liabilities was due to a
$1.93 billion decrease in the average
balance of total deposits and a $1.39
billion decrease in the average balance of borrowings.
Interest expense on deposits decreased $9.6 million, or 18.4%, to $42.6 million for the fourth quarter of 2013 from
$52.2 million for the fourth quarter
of 2012. The decrease is due to the decline in the average
cost of interest-bearing deposits of 10 basis points to 0.80% for
the fourth quarter of 2013 from 0.90% for the fourth quarter of
2012. This decrease was also due to a $2.01 billion decrease in the average balance of
interest-bearing deposits to $21.06
billion for the fourth quarter of 2013 from $23.07 billion for the fourth quarter of 2012.
For the year ended December 31,
2013, interest expense on deposits decreased $56.3 million, or 23.6%, to $182.4 million from $238.7
million for the year ended December
31, 2012. This decrease is due primarily to a decrease
in the average cost of interest-bearing deposits of 17 basis points
to 0.83% for the year ended December 31,
2013 from 1.00% for the year ended December 31, 2012 This decrease was also due to a
$1.93 billion decrease in the average
balance of interest-bearing deposits to $21.91 billion during the year ended December 31, 2013 from $23.84 billion for the year ended December 31, 2012.
The decrease in the average cost of deposits for 2013 reflected
lower market interest rates and our decision to maintain lower
deposit rates to continue our balance sheet reduction. At
December 31, 2013, time deposits
scheduled to mature within one year totaled $7.49 billion with an average cost of
0.84%. These time deposits are scheduled to mature as
follows: $2.81 billion with an
average cost of 0.69% in the first quarter of 2014, $2.30 billion with an average cost of 0.74% in
the second quarter of 2014, $1.39
billion with an average cost of 0.90% in the third quarter
of 2014 and $988.6 million with an
average cost of 1.39% in the fourth 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 $837,000 to $142.8
million for the fourth quarter of 2013 from $143.7 million for the fourth quarter of
2012. This decrease was due to a $345.7 million decrease in the average balance of
borrowed funds to $12.18 billion for
the fourth quarter of 2013 from $12.52
billion for the fourth quarter of 2012. This decrease
was partially offset by a 10 basis point increase in the annualized
weighted-average cost of borrowed funds to 4.59% for the fourth
quarter of 2013 compared with 4.49% for the fourth quarter of 2012
as lower cost borrowings matured during the fourth quarter of
2012.
For the year ended December 31,
2013 interest expense on borrowed funds decreased
$14.1 million to $566.3 million from $580.4
million for the year ended December
31, 2012. This decrease was due to a $1.39 billion decrease in the average balance of
borrowed funds to $12.18 billion for
2013 as compared to $13.57 billion
for 2012. This decrease was partially offset by a 37 basis
point increase in the weighted-average cost of borrowed funds to
4.65% for 2013 as compared to 4.28% for 2012.
The decrease in the average balance of borrowings for the three
months and year ended December 31,
2013 was due primarily to the maturity of $3.45 billion of borrowings during 2012,
including $3.0 billion 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, resulting in the increase in the
weighted average cost of interest-bearing liabilities.
Borrowings amounted to $12.18
billion at December 31, 2013
with an average cost of 4.65%. There are no scheduled maturities
for 2014.
There was no provision for loan losses for the quarter ended
December 31, 2013 as compared to a
$25.0 million provision for loan
losses for the quarter ended December 31,
2012. For the linked third quarter of 2013, the
provision for loan losses amounted to $4.0
million. For the year ended December 31, 2013, the provision for loan losses
was $36.5 million as compared to
$95.0 million for the year ended
December 31, 2012. The decrease
in our provision for loan losses was due primarily to improving
economic conditions, increasing 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 $1.05 billion at December
31, 2013 compared with $1.16
billion at December 31, 2012
and $1.07 billion at September 30, 2013. The ratio of
non-performing loans to total loans was 4.35% at December 31, 2013 as compared to 4.29% at
December 31, 2012, as the decline in
the total loan portfolio outpaced the decline in non-performing
loans. 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 $311.9 million at December
31, 2013 as compared to $393.8
million at December 31,
2012. Loans delinquent 60 to 89 days amounted to $161.5 million at December
31, 2013 as compared to $239.3
million at December 31,
2012. The allowance for loan losses amounted to $276.1 million at December
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
26.31%, respectively at December 31,
2013, as compared to 1.12% and 26.01%, respectively at
December 31, 2012 and 1.19% and
27.17%, respectively, at September
30, 2013.
Net charge-offs amounted to $14.9
million for the fourth quarter of 2013 as compared to
$14.2 million for the fourth quarter
of 2012 and $10.3 million for the
linked third quarter of 2013. The ratio of net charge-offs to
average loans was 0.24% for the fourth quarter of 2013 as compared
to 0.21% for the fourth quarter of 2012 and 0.17% for the linked
third quarter of 2013 reflecting the slight increase in net
charge-offs and the decline in average loans.
Total non-interest income was $13.5
million for the fourth quarter of 2013 as compared to
$2.7 million for the fourth quarter
of 2012. Included in non-interest income for the fourth
quarter of 2013 was an $11.1 million
gain on the sale of $165.9 million of
mortgage-backed securities. The remainder of non-interest income is
primarily made up of service fees and charges on deposit and loan
accounts. There were no securities sales for the fourth
quarter of 2012.
Total non-interest income was $39.1
million for 2013 as compared to $11.5
million for 2012. Included in non-interest income for the
year 2013 was a $7.2 million gain on
the sale of corporate bonds with an amortized cost of $405.7 million and a $21.7
million gain on the sale of $316.2
million of mortgage-backed securities. There were no
securities sales for the year ended December
31, 2012.
Total non-interest expense decreased $14.1 million to $73.5
million for the fourth quarter of 2013 as compared to
$87.6 million for the fourth quarter
of 2012. This decrease was due to an $18.8 million decrease in Federal deposit
insurance expense partially offset by a $3.8
million increase in other non-interest expense.
Compensation and employee benefit costs increased $499,000, or 1.5%, to $33.7 million for the fourth quarter of 2013 as
compared to $33.2 million for the
same period in 2012. The increase in compensation and employee
benefit costs is primarily due to an increase of $991,000 in stock benefit plan expense partially
offset by a $417,000 decrease in
compensation cost. At December 31,
2013, we had 1,520 full-time equivalent employees as
compared to 1,622 at December 31,
2012.
For the quarter ended December 31,
2013, Federal deposit insurance expense decreased
$18.8 million, or 63.4%, to
$10.9 million from $29.8 million for the quarter ended December 31, 2012. The decrease in Federal
deposit insurance expense for the quarter ended December 31, 2013 is primarily due to a reduction
in the size of our balance sheet and a decrease in our assessment
rate. In addition, there was a $2.4
million one-time reduction in our assessment for the fourth
quarter of 2013 related to an adjustment of a previous quarter's
assessment as well as a $2.9 million
adjustment to accrued FDIC expense to reflect the recent decreases
in our assessment rate.
Other non-interest expense increased $3.8
million for the quarter ended December 31, 2013 to $19.9
million as compared to $16.1
million for the fourth quarter of 2012. This increase
was due primarily to a $2.5 million
increase in carrying costs associated with foreclosed real estate
and $569,000 in Merger-related
professional fees.
Included in other non-interest expense were write-downs on
foreclosed real estate and net gains and losses on the sale of
foreclosed real estate which amounted to a net gain of $908,000 for the fourth quarter of 2013 as
compared to net losses of $565,000
for the fourth quarter of 2012. We sold 55 properties during
the fourth quarter of 2013 and had 204 properties in foreclosed
real estate with a carrying value of $70.4
million, 20 of which were under contract to sell as of
December 31, 2013. For the
fourth quarter of 2012, we sold 41 properties and had 135
properties in foreclosed real estate with a carrying value of
$47.3 million, of which 30 were under
contract to sell as of December 31,
2012. This pipeline is now growing steadily as properties
emerge from the foreclosure process. At December 31, 2013, 121 loans were scheduled for
foreclosure sale as compared to 92 loans at December 31, 2012.
Total non-interest expense amounted to $309.8 million for the year ended December 31, 2013 as compared to $356.6 million for the year ended December 31, 2012. This decrease was due to
a $50.2 million decrease in Federal
deposit insurance expense and a $2.1
million decrease in other non-interest expense partially
offset by a $3.1 million increase in
compensation and benefits and a $2.5
million increase in net occupancy costs.
Compensation and employee benefit costs increased $3.1 million, or 2.4%, to $132.7 million for the year ended December 31, 2013 as compared to $129.6 million for the same period in 2012. The
increase in compensation costs is primarily due to increases of
$2.7 million in stock benefit plan
expense and $655,000 in compensation
costs.
For the year ended December 31,
2013 Federal deposit insurance expense decreased
$50.2 million, or 40.6%, to
$73.5 million from $123.7 million for the year ended December 31, 2012. This decrease was due
primarily to a reduction in the size of our balance sheet and a
decrease in our assessment rate.
Other non-interest expense decreased $2.1
million for the year ended December
31, 2013 to $66.9 million as
compared to $69.0 million for the
same period in 2012. This decrease was due primarily to a
decrease in Merger-related professional fees of $5.4 million and a $3.6
million decrease in write-downs and net losses on foreclosed
real estate. These decreases were partially offset by a
$6.2 million increase in carrying
costs associated with foreclosed real estate.
Included in other non-interest expense were write-downs on
foreclosed real estate and net gains on the sale of foreclosed real
estate which amounted to a net gain of $1.7
million for the year ended December
31, 2013 as compared to a net loss of $1.9 million for the comparable period in
2012. We sold 207 properties during 2013 as compared to 191
properties for the same period in 2012. Also included in
other non-interest expense were holding costs associated with
foreclosed real estate which amounted to $14.5 million and $8.3
million for the years ended December
31, 2013 and 2012, respectively.
Our efficiency ratio was 48.77% for the 2013 fourth quarter as
compared to 44.87% for the 2012 fourth quarter. For the year
ended December 31, 2013, our
efficiency ratio was 47.44% compared with 40.50% for the year ended
December 31, 2012. The calculation of
the efficiency ratio is included in a table contained in this press
release. Our return on average assets was 0.47% for both the
2013 fourth quarter and 2012 fourth quarter. Our annualized
ratio of non-interest expense to average total assets for the
fourth quarter of 2013 was 0.76% as compared to 0.85% for the
fourth quarter of 2012. Our ratio of non-interest expense to
average total assets for the year ended December 31, 2013 was 0.78% compared with 0.83%
for the corresponding period of 2012.
Income tax expense amounted to $30.1
million for the fourth quarter of 2013 compared with income
tax expense of $34.5 million for the
corresponding period in 2012. Our effective tax rate for the fourth
quarter of 2013 was 39.62% compared with 41.84% for the fourth
quarter of 2012. Income tax expense amounted to $120.0 million for the year ended December 31, 2013 compared with income tax
expense of $164.6 million for the
year ended December 31, 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., the characterization of the future effects of any
restructuring transactions on balance sheet strength, capital
ratios, net interest margin and earnings prospects and Hudson
City Bancorp, Inc.'s strategies, plans, objectives, expectations,
and intentions, including the Merger and the Strategic Plan, 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
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2013
|
2012
|
(In thousands,
except share and per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
Cash and due from
banks
|
|
$
133,665
|
|
$
171,042
|
Federal funds sold
and other overnight deposits
|
|
4,190,809
|
|
656,926
|
Total cash and cash equivalents
|
|
4,324,474
|
|
827,968
|
|
|
|
|
|
|
Securities available
for sale:
|
|
|
|
|
Mortgage-backed securities
|
|
7,167,555
|
|
8,040,742
|
Investment securities
|
|
297,283
|
|
428,057
|
Securities held to
maturity:
|
|
|
|
|
Mortgage-backed securities
|
|
1,784,464
|
|
2,976,757
|
Investment securities
|
|
39,011
|
|
39,011
|
|
Total
securities
|
|
9,288,313
|
|
11,484,567
|
|
|
|
|
|
|
Loans
|
|
|
24,112,829
|
|
27,090,879
|
Net
deferred loan costs
|
|
105,480
|
|
97,534
|
Allowance for loan losses
|
|
(276,097)
|
|
(302,348)
|
|
Net loans
|
|
23,942,212
|
|
26,886,065
|
|
|
|
|
|
|
Federal Home Loan
Bank of New York stock
|
|
347,102
|
|
356,467
|
Foreclosed real
estate, net
|
|
70,436
|
|
47,322
|
Accrued interest
receivable
|
|
52,887
|
|
87,075
|
Banking premises and
equipment, net
|
|
65,353
|
|
74,912
|
Goodwill
|
|
152,109
|
|
152,109
|
Other
assets
|
|
364,468
|
|
679,856
|
|
Total Assets
|
|
$
38,607,354
|
|
$
40,596,341
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
Deposits:
|
|
|
|
|
Interest-bearing
|
|
$
20,811,108
|
|
$
22,833,992
|
Noninterest-bearing
|
|
661,221
|
|
649,925
|
|
Total
deposits
|
|
21,472,329
|
|
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
|
|
217,449
|
|
237,616
|
|
Total
liabilities
|
|
33,864,778
|
|
35,896,533
|
|
|
|
|
|
|
Common stock, $0.01
par value, 3,200,000,000 shares authorized;
|
|
|
|
|
|
741,466,555 shares
issued; 528,419,170 and 528,211,462 shares outstanding at
December 31, 2013 and 2012, respectively
|
|
7,415
|
|
7,415
|
Additional paid-in
capital
|
|
4,743,388
|
|
4,730,105
|
Retained
earnings
|
|
1,883,754
|
|
1,798,430
|
Treasury stock, at
cost; 213,047,385 and 213,255,093 shares at
|
|
|
|
|
|
December 31, 2013 and
2012, respectively
|
|
(1,712,107)
|
|
(1,713,895)
|
Unallocated common
stock held by the employee stock ownership plan
|
|
(186,210)
|
|
(192,217)
|
Accumulated other
comprehensive income, net of tax
|
|
6,336
|
|
69,970
|
|
Total shareholders'
equity
|
|
4,742,576
|
|
4,699,808
|
|
Total Liabilities and Shareholders' Equity
|
|
$
38,607,354
|
|
$
40,596,341
|
|
|
|
|
|
Hudson City
Bancorp, Inc. and Subsidiary
|
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months
|
|
For the
Year
|
|
|
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
(In thousands,
except share data)
|
Interest and Dividend
Income:
|
|
|
|
|
|
|
|
|
|
First mortgage
loans
|
|
$
259,269
|
|
$
309,823
|
|
$
1,103,840
|
|
$
1,309,568
|
|
Consumer and other
loans
|
|
2,395
|
|
3,077
|
|
10,088
|
|
12,887
|
|
Mortgage-backed
securities held to maturity
|
|
13,703
|
|
26,903
|
|
75,695
|
|
127,861
|
|
Mortgage-backed
securities available for sale
|
|
38,299
|
|
40,567
|
|
140,795
|
|
186,174
|
|
Investment securities
held to maturity
|
|
585
|
|
585
|
|
2,341
|
|
3,488
|
|
Investment securities
available for sale
|
|
810
|
|
2,368
|
|
6,308
|
|
8,148
|
|
Dividends on Federal
Home Loan Bank of New York stock
|
|
3,499
|
|
4,592
|
|
14,689
|
|
23,470
|
|
Federal funds sold
and other overnight deposits
|
|
2,749
|
|
243
|
|
7,425
|
|
1,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest and dividend
income
|
|
321,309
|
|
388,158
|
|
1,361,181
|
|
1,673,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
42,627
|
|
52,239
|
|
182,391
|
|
238,684
|
|
Borrowed
funds
|
|
142,818
|
|
143,655
|
|
566,277
|
|
580,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
185,445
|
|
195,894
|
|
748,668
|
|
819,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
135,864
|
|
192,264
|
|
612,513
|
|
853,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Loan
Losses
|
|
-
|
|
25,000
|
|
36,500
|
|
95,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
after provision for loan losses
|
|
135,864
|
|
167,264
|
|
576,013
|
|
758,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Income:
|
|
|
|
|
|
|
|
|
|
Service charges and
other income
|
|
2,403
|
|
2,733
|
|
10,156
|
|
11,461
|
|
Gain on securities
transactions, net
|
|
11,109
|
|
-
|
|
28,933
|
|
-
|
|
Total non-interest
income
|
|
13,512
|
|
2,733
|
|
39,089
|
|
11,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest
Expense:
|
|
|
|
|
|
|
|
|
|
Compensation and
employee benefits
|
|
33,717
|
|
33,218
|
|
132,733
|
|
129,644
|
|
Net occupancy
expense
|
|
8,874
|
|
8,484
|
|
36,790
|
|
34,270
|
|
Federal deposit
insurance assessment
|
|
10,938
|
|
29,750
|
|
73,463
|
|
123,695
|
|
Other
expense
|
|
19,944
|
|
16,104
|
|
66,851
|
|
68,993
|
|
Total non-interest
expense
|
|
73,473
|
|
87,556
|
|
309,837
|
|
356,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
tax expense
|
|
75,903
|
|
82,441
|
|
305,265
|
|
413,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax
Expense
|
|
30,074
|
|
34,493
|
|
120,049
|
|
164,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
45,829
|
|
$
47,948
|
|
$
185,216
|
|
$
249,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per
Share
|
|
$
0.09
|
|
$
0.10
|
|
0.37
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
$
0.09
|
|
$
0.10
|
|
$
0.37
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
498,166,594
|
|
496,965,560
|
|
497,793,895
|
|
496,570,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
498,525,372
|
|
497,043,573
|
|
498,070,797
|
|
496,604,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson City
Bancorp, Inc. and Subsidiary
|
Consolidated
Average Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
For the Three
Months Ended December 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)
|
$
23,950,833
|
|
$
259,269
|
|
4.33
|
%
|
$
27,005,937
|
|
$
309,823
|
|
4.59
|
%
|
|
Consumer and other
loans
|
216,007
|
|
2,395
|
|
4.44
|
|
256,698
|
|
3,077
|
|
4.79
|
|
|
Federal funds sold
and other overnight deposits
|
3,858,780
|
|
2,749
|
|
0.28
|
|
386,273
|
|
243
|
|
0.25
|
|
|
Mortgage-backed
securities at amortized cost
|
9,209,940
|
|
52,002
|
|
2.26
|
|
11,240,812
|
|
67,470
|
|
2.40
|
|
|
Federal Home Loan
Bank stock
|
347,102
|
|
3,499
|
|
4.03
|
|
372,315
|
|
4,592
|
|
4.93
|
|
|
Investment
securities, at amortized cost
|
344,235
|
|
1,395
|
|
1.62
|
|
452,706
|
|
2,953
|
|
2.61
|
|
|
|
Total
interest-earning assets
|
37,926,897
|
|
321,309
|
|
3.39
|
|
39,714,741
|
|
388,158
|
|
3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings
assets (4)
|
950,067
|
|
|
|
|
|
1,524,460
|
|
|
|
|
|
|
|
Total
Assets
|
$
38,876,964
|
|
|
|
|
|
$
41,239,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
996,288
|
|
379
|
|
0.15
|
|
$
930,625
|
|
599
|
|
0.26
|
|
|
Interest-bearing
transaction accounts
|
2,200,303
|
|
1,600
|
|
0.29
|
|
2,283,400
|
|
2,206
|
|
0.38
|
|
|
Money market
accounts
|
5,344,536
|
|
2,671
|
|
0.20
|
|
6,822,577
|
|
5,930
|
|
0.35
|
|
|
Time
deposits
|
12,523,101
|
|
37,977
|
|
1.20
|
|
13,033,015
|
|
43,504
|
|
1.33
|
|
|
|
Total
interest-bearing deposits
|
21,064,228
|
|
42,627
|
|
0.80
|
|
23,069,617
|
|
52,239
|
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
6,950,000
|
|
78,955
|
|
4.45
|
|
6,950,000
|
|
79,136
|
|
4.46
|
|
|
Federal Home Loan
Bank of New York advances
|
5,225,000
|
|
63,863
|
|
4.78
|
|
5,570,652
|
|
64,519
|
|
4.53
|
|
|
|
Total borrowed
funds
|
12,175,000
|
|
142,818
|
|
4.59
|
|
12,520,652
|
|
143,655
|
|
4.49
|
|
|
|
Total
interest-bearing liabilities
|
33,239,228
|
|
185,445
|
|
2.19
|
|
35,590,269
|
|
195,894
|
|
2.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
655,183
|
|
|
|
|
|
634,767
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
249,082
|
|
|
|
|
|
265,772
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
904,265
|
|
|
|
|
|
900,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
34,143,493
|
|
|
|
|
|
36,490,808
|
|
|
|
|
|
Shareholders'
equity
|
4,733,471
|
|
|
|
|
|
4,748,393
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
38,876,964
|
|
|
|
|
|
$
41,239,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/net interest rate spread (2)
|
|
|
$
135,864
|
|
1.20
|
|
|
|
$
192,264
|
|
1.75
|
|
|
|
|
4560246
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/net interest margin (3)
|
$
4,687,669
|
|
|
|
1.47
|
%
|
$
4,124,472
|
|
|
|
1.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liabilities
|
|
|
|
|
1.14
|
x
|
|
|
|
|
1.12
|
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 $67.6 million and $123.5 million
|
|
|
|
for the quarters
ended December 31, 2013 and 2012, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson City
Bancorp, Inc. and Subsidiary
|
Consolidated
Average Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
For the Years
Ended December 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)
|
$
24,923,290
|
|
$1,103,840
|
|
4.43
|
%
|
$
27,677,039
|
|
$
1,309,568
|
|
4.73
|
%
|
|
Consumer and other
loans
|
228,704
|
|
10,088
|
|
4.41
|
|
270,188
|
|
12,887
|
|
4.77
|
|
|
Federal funds sold
and other overnight deposits
|
2,931,355
|
|
7,425
|
|
0.25
|
|
591,092
|
|
1,443
|
|
0.24
|
|
|
Mortgage-backed
securities at amortized cost
|
9,792,478
|
|
216,490
|
|
2.21
|
|
12,034,383
|
|
314,035
|
|
2.61
|
|
|
Federal Home Loan
Bank stock
|
349,591
|
|
14,689
|
|
4.20
|
|
425,561
|
|
23,470
|
|
5.52
|
|
|
Investment
securities, at amortized cost
|
415,173
|
|
8,649
|
|
2.08
|
|
429,539
|
|
11,636
|
|
2.71
|
|
|
|
Total
interest-earning assets
|
38,640,591
|
|
1,361,181
|
|
3.52
|
|
41,427,802
|
|
1,673,039
|
|
4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-earnings
assets (4)
|
1,077,827
|
|
|
|
|
|
1,506,828
|
|
|
|
|
|
|
|
Total
Assets
|
$
39,718,418
|
|
|
|
|
|
$
42,934,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
accounts
|
982,900
|
|
1,860
|
|
0.19
|
|
$
908,903
|
|
2,761
|
|
0.30
|
|
|
Interest-bearing
transaction accounts
|
2,232,495
|
|
7,201
|
|
0.32
|
|
2,181,326
|
|
11,608
|
|
0.53
|
|
|
Money market
accounts
|
5,895,550
|
|
15,027
|
|
0.25
|
|
7,529,380
|
|
35,059
|
|
0.47
|
|
|
Time
deposits
|
12,796,643
|
|
158,303
|
|
1.24
|
|
13,223,809
|
|
189,256
|
|
1.43
|
|
|
|
Total
interest-bearing deposits
|
21,907,588
|
|
182,391
|
|
0.83
|
|
23,843,418
|
|
238,684
|
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchase
agreements
|
6,950,000
|
|
313,351
|
|
4.51
|
|
6,950,000
|
|
314,485
|
|
4.52
|
|
|
Federal Home Loan
Bank of New York advances
|
5,225,000
|
|
252,926
|
|
4.84
|
|
6,623,094
|
|
265,947
|
|
4.02
|
|
|
|
Total borrowed
funds
|
12,175,000
|
|
566,277
|
|
4.65
|
|
13,573,094
|
|
580,432
|
|
4.28
|
|
|
|
Total
interest-bearing liabilities
|
34,082,588
|
|
748,668
|
|
2.20
|
|
37,416,512
|
|
819,116
|
|
2.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
644,572
|
|
|
|
|
|
611,656
|
|
|
|
|
|
|
Other
noninterest-bearing liabilities
|
259,216
|
|
|
|
|
|
230,491
|
|
|
|
|
|
|
|
Total
noninterest-bearing liabilities
|
903,788
|
|
|
|
|
|
842,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
34,986,376
|
|
|
|
|
|
38,258,659
|
|
|
|
|
|
Shareholders'
equity
|
4,732,042
|
|
|
|
|
|
4,675,971
|
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
$
39,718,418
|
|
|
|
|
|
$
42,934,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/net interest rate spread (2)
|
|
|
$
612,513
|
|
1.32
|
|
|
|
$
853,923
|
|
1.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets/net interest margin (3)
|
$
4,558,003
|
|
|
|
1.59
|
%
|
$
4,011,290
|
|
|
|
2.06
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of
interest-earning assets to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-bearing
liabilities
|
|
|
|
|
1.13
|
x
|
|
|
|
|
1.11
|
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 $97.8 million and $122.3 million
|
|
|
|
for the years ended
December 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
|
|
|
|
|
Dec. 31,
2013
|
|
Sept 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
Dec. 31,
2012
|
|
|
(In thousands, except
share data)
|
Efficiency
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
135,864
|
|
$
139,413
|
|
$
159,853
|
|
$
177,383
|
|
$
192,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
income
|
13,512
|
|
13,456
|
|
9,588
|
|
2,533
|
|
2,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
operating income
|
$
149,376
|
|
$
152,869
|
|
$
169,441
|
|
$
179,916
|
|
$
194,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
$
73,473
|
|
$
78,488
|
|
$
76,621
|
|
$
81,255
|
|
$
87,556
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger-related costs
|
(623)
|
|
-
|
|
-
|
|
(69)
|
|
(54)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-interest operating expense
|
$
72,850
|
|
$
78,488
|
|
$
76,621
|
|
$
81,186
|
|
$
87,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(1)
|
48.77%
|
|
51.34%
|
|
45.22%
|
|
45.12%
|
|
44.87%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value
Calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$
4,742,576
|
|
$
4,689,105
|
|
$
4,660,900
|
|
$
4,711,443
|
|
$
4,699,808
|
|
|
Goodwill and other
intangible assets
|
(153,218)
|
|
(153,469)
|
|
(153,721)
|
|
(153,970)
|
|
(154,218)
|
|
|
Tangible
shareholders' equity
|
$
4,589,358
|
|
$
4,535,636
|
|
$
4,507,179
|
|
$
4,557,473
|
|
$
4,545,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book Value Share
Computation:
|
|
|
|
|
|
|
|
|
|
|
|
Issued
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
741,466,555
|
|
|
Treasury shares
|
(213,047,385)
|
|
(213,047,385)
|
|
(213,047,385)
|
|
(213,032,583)
|
|
(213,255,093)
|
|
|
Shares outstanding
|
528,419,170
|
|
528,419,170
|
|
528,419,170
|
|
528,433,972
|
|
528,211,462
|
|
|
Unallocated ESOP
shares
|
(29,827,724)
|
|
(30,068,270)
|
|
(30,308,816)
|
|
(30,549,363)
|
|
(30,789,909)
|
|
|
Shares in trust
|
(426,103)
|
|
(396,754)
|
|
(396,906)
|
|
(394,926)
|
|
(391,266)
|
|
|
Book value shares
|
498,165,343
|
|
497,954,146
|
|
497,713,448
|
|
497,489,683
|
|
497,030,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per
share
|
$
9.52
|
|
$
9.42
|
|
$
9.36
|
|
$
9.47
|
|
$
9.46
|
|
|
Tangible book value
per share
|
9.21
|
|
9.11
|
|
9.06
|
|
9.16
|
|
9.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 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, 2013:
|
|
|
|
|
|
|
|
Amortized
|
|
Estimated
|
|
Unrealized
|
|
Cost
|
|
Fair
Value
|
|
Gain/(Loss)
|
|
|
|
(Dollars in
thousands)
|
|
|
Held to
Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities:
|
|
|
|
|
|
FHLMC
|
$
1,123,029
|
|
$
1,189,844
|
|
$
66,815
|
FNMA
|
402,848
|
|
427,950
|
|
25,102
|
FHLMC and FNMA CMO's
|
195,517
|
|
205,699
|
|
10,182
|
GNMA
|
63,070
|
|
65,330
|
|
2,260
|
Total
mortgage-backed securities
|
1,784,464
|
|
1,888,823
|
|
104,359
|
|
|
|
|
|
|
Investment
securities:
|
|
|
|
|
|
United States GSE
debt
|
39,011
|
|
42,727
|
|
3,716
|
Total investment
securities
|
39,011
|
|
42,727
|
|
3,716
|
|
|
|
|
|
|
Total held to
maturity
|
$
1,823,475
|
|
$
1,931,550
|
|
$
108,075
|
|
|
|
|
|
|
|
|
|
|
|
|
Available for
sale:
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities:
|
|
|
|
|
|
FHLMC
|
$
2,396,085
|
|
$
2,433,438
|
|
$
37,353
|
FNMA
|
3,879,723
|
|
3,890,723
|
|
11,000
|
FHLMC and FNMA CMO's
|
38,220
|
|
38,511
|
|
291
|
GNMA
|
788,504
|
|
804,883
|
|
16,379
|
Total
mortgage-backed securities
|
7,102,532
|
|
7,167,555
|
|
65,023
|
|
|
|
|
|
|
Investment
securities:
|
|
|
|
|
|
United States GSE
debt
|
298,190
|
|
290,194
|
|
(7,996)
|
Equity securities
|
6,873
|
|
7,089
|
|
216
|
Total investment
securities
|
305,063
|
|
297,283
|
|
(7,780)
|
|
|
|
|
|
|
Total
available for sale
|
$
7,407,595
|
|
$
7,464,838
|
|
$
57,243
|
|
|
|
|
|
|
Hudson City
Bancorp, Inc.
|
Other Financial
Data
|
|
|
|
|
|
Loan Data at
December 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
|
|
$
899,174
|
|
2,581
|
|
3.73%
|
|
$
23,058,397
|
|
55,704
|
95.64%
|
FHA/VA
|
|
132,844
|
|
559
|
|
0.55%
|
|
704,532
|
|
3,589
|
2.92%
|
PMI
|
|
6,695
|
|
20
|
|
0.03%
|
|
109,247
|
|
370
|
0.45%
|
Construction
|
|
294
|
|
1
|
|
0.00%
|
|
294
|
|
1
|
0.00%
|
Commercial
|
|
3,189
|
|
4
|
|
0.01%
|
|
25,671
|
|
63
|
0.11%
|
Total
mortgage loans
|
|
1,042,196
|
|
3,165
|
|
0.00%
|
|
23,898,141
|
|
59,727
|
99.11%
|
|
|
|
|
|
|
|
|
|
|
|
|
Home equity
loans
|
|
5,307
|
|
62
|
|
0.02%
|
|
194,629
|
|
5,429
|
0.81%
|
Other
loans
|
|
1,741
|
|
6
|
|
0.01%
|
|
20,059
|
|
1,890
|
0.08%
|
Total
|
|
$
1,049,244
|
|
3,233
|
|
4.35%
|
|
$
24,112,829
|
|
67,046
|
100.00%
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreclosed real
estate at December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
|
|
|
Number
Under
|
|
|
|
Number
|
|
Value
|
|
|
Contract of
Sale
|
|
|
|
|
|
(Dollars in
thousands)
|
|
|
|
|
Foreclosed real
estate
|
|
204
|
|
$
70,436
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
Hudson City
Bancorp, Inc. and Subsidiary
|
Other Financial
Data
|
(Unaudited)
|
|
|
At or for the
Quarter Ended
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
Dec. 31,
2012
|
|
(Dollars in
thousands, except per share data)
|
Net interest
income
|
$
135,864
|
|
$
139,413
|
|
$
159,853
|
|
$
177,383
|
|
$
192,264
|
Provision for loan
losses
|
-
|
|
4,000
|
|
12,500
|
|
20,000
|
|
25,000
|
Non-interest
income
|
13,512
|
|
13,456
|
|
9,588
|
|
2,533
|
|
2,733
|
Non-interest
expense:
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits
|
33,717
|
|
34,802
|
|
32,613
|
|
31,601
|
|
33,218
|
FDIC
insurance assessment
|
10,938
|
|
18,850
|
|
19,600
|
|
24,075
|
|
29,750
|
Other
non-interest expense
|
28,818
|
|
24,836
|
|
24,408
|
|
25,579
|
|
24,588
|
Total
non-interest expense
|
73,473
|
|
78,488
|
|
76,621
|
|
81,255
|
|
87,556
|
Income before income
tax expense
|
75,903
|
|
70,381
|
|
80,320
|
|
78,661
|
|
82,441
|
Income tax
expense
|
30,074
|
|
27,647
|
|
31,598
|
|
30,730
|
|
34,493
|
Net income
|
$
45,829
|
|
$
42,734
|
|
$
48,722
|
|
$
47,931
|
|
$
47,948
|
Total
assets
|
$
38,607,354
|
|
$
39,186,560
|
|
$
39,696,453
|
|
$
40,286,698
|
|
$
40,596,341
|
Loans,
net
|
23,942,212
|
|
24,362,961
|
|
24,977,668
|
|
25,923,210
|
|
26,886,065
|
Mortgage-backed
securities
|
8,952,019
|
|
9,686,630
|
|
10,311,102
|
|
10,112,098
|
|
11,017,499
|
Other
securities
|
336,294
|
|
337,656
|
|
336,165
|
|
466,210
|
|
467,068
|
Deposits
|
21,472,329
|
|
22,079,731
|
|
22,619,271
|
|
23,163,092
|
|
23,483,917
|
Borrowings
|
12,175,000
|
|
12,175,000
|
|
12,175,000
|
|
12,175,000
|
|
12,175,000
|
Shareholders'
equity
|
4,742,576
|
|
4,689,105
|
|
4,660,900
|
|
4,711,443
|
|
4,699,808
|
Performance
Data:
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
0.47%
|
|
0.43%
|
|
0.49%
|
|
0.47%
|
|
0.47%
|
Return on average
equity (1)
|
3.87%
|
|
3.63%
|
|
4.10%
|
|
4.05%
|
|
4.04%
|
Net interest rate
spread(1)
|
1.20%
|
|
1.22%
|
|
1.38%
|
|
1.53%
|
|
1.75%
|
Net interest margin
(1)
|
1.47%
|
|
1.48%
|
|
1.64%
|
|
1.78%
|
|
1.97%
|
Non-interest expense
to average assets (1) (4)
|
0.76%
|
|
0.80%
|
|
0.76%
|
|
0.80%
|
|
0.85%
|
Compensation and
benefits to total revenue (5)
|
22.57%
|
|
22.77%
|
|
19.25%
|
|
17.56%
|
|
17.04%
|
Operating efficiency
ratio (2)
|
48.77%
|
|
51.34%
|
|
45.22%
|
|
45.12%
|
|
44.87%
|
Dividend payout
ratio
|
44.44%
|
|
44.44%
|
|
40.00%
|
|
80.00%
|
|
80.00%
|
Per Common Share
Data:
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$0.09
|
|
$0.09
|
|
$0.10
|
|
$0.10
|
|
$0.10
|
Diluted earnings per
common share
|
$0.09
|
|
$0.09
|
|
$0.10
|
|
$0.10
|
|
$0.10
|
Book value per share
(3)
|
$9.52
|
|
$9.42
|
|
$9.36
|
|
$9.47
|
|
$9.46
|
Tangible book value
per share (3)
|
$9.21
|
|
$9.11
|
|
$9.06
|
|
$9.16
|
|
$9.15
|
Dividends per
share
|
$0.04
|
|
$0.04
|
|
$0.04
|
|
$0.08
|
|
$0.08
|
Capital
Ratios:
|
|
|
|
|
|
|
|
|
|
Equity to total
assets (consolidated)
|
12.28%
|
|
11.97%
|
|
11.74%
|
|
11.69%
|
|
11.58%
|
Tier 1 leverage
capital (Bank)
|
10.82%
|
|
10.57%
|
|
10.41%
|
|
10.20%
|
|
10.09%
|
Total risk-based
capital (Bank)
|
25.31%
|
|
24.40%
|
|
23.78%
|
|
22.77%
|
|
21.59%
|
Other
Data:
|
|
|
|
|
|
|
|
|
|
Full-time equivalent
employees
|
1,520
|
|
1,525
|
|
1,522
|
|
1,580
|
|
1,622
|
Number of banking
offices
|
135
|
|
135
|
|
135
|
|
135
|
|
135
|
Asset Quality
Data:
|
|
|
|
|
|
|
|
|
|
Total non-performing
loans
|
$
1,049,244
|
|
$
1,071,196
|
|
$
1,112,206
|
|
$
1,136,280
|
|
$
1,162,527
|
Number of
non-performing loans
|
3,233
|
|
3,288
|
|
3,414
|
|
3,407
|
|
3,432
|
Total number of
loans
|
67,046
|
|
67,940
|
|
69,578
|
|
72,205
|
|
74,328
|
Total non-performing
assets
|
$
1,119,680
|
|
$
1,136,902
|
|
$
1,173,778
|
|
$
1,199,959
|
|
$
1,209,849
|
Non-performing loans
to total loans
|
4.35%
|
|
4.36%
|
|
4.42%
|
|
4.35%
|
|
4.29%
|
Non-performing assets
to total assets
|
2.90%
|
|
2.90%
|
|
2.96%
|
|
2.98%
|
|
2.98%
|
Allowance for loan
losses
|
$
276,097
|
|
$
291,007
|
|
$
297,288
|
|
$
301,093
|
|
$
302,348
|
Allowance for loan
losses to non-performing loans
|
26.31%
|
|
27.17%
|
|
26.73%
|
|
26.50%
|
|
26.01%
|
Allowance for loan
losses to total loans
|
1.15%
|
|
1.19%
|
|
1.18%
|
|
1.15%
|
|
1.12%
|
Provision for loan
losses
|
$
-
|
|
$
4,000
|
|
$
12,500
|
|
$
20,000
|
|
$
25,000
|
Net
charge-offs
|
$
14,910
|
|
$
10,281
|
|
$
16,305
|
|
$
21,255
|
|
$
14,225
|
Ratio of net
charge-offs to average loans (1)
|
0.24%
|
|
0.17%
|
|
0.26%
|
|
0.32%
|
|
0.21%
|
Net gains (losses) on
foreclosed real estate
|
$
908
|
|
$
346
|
|
$
803
|
|
$
(396)
|
|
$
(565)
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Hudson City Bancorp, Inc.