PARAMUS, N.J., Sept. 25, 2014 /PRNewswire/ -- Hudson City
Bancorp, Inc. (NASDAQ: HCBK) (the "Company"), the holding company
for Hudson City Savings Bank (the "Bank"), announced today that it
sold a pool of $112.1 million of
residential mortgage loans guaranteed by the Federal Housing
Administration ("FHA"), all of which were nonperforming at
June 30, 2014, back to the financial
institution that originally sold the loans to the Bank. The
sale of the non-performing loan pool back to the financial
institution was in accordance with the repurchase right that the
financial institution exercised pursuant to the terms of the
original sale and servicing agreement between the Bank and the
financial institution. As consideration for the sale of the
non-performing loans, the Bank received from the financial
institution an amount equal to 100% of the outstanding unpaid
principal balance of the loans, plus all accrued and unpaid
interest on the loans. The Bank may sell additional loans to
the financial institution in the future, in the event the financial
institution exercises its repurchase right with respect to any
additional FHA loans.
As a result of the sale transaction, the Company expects to
experience a charge to the allowance for loan losses of
approximately $2.9 million, resulting
from the write-off of unamortized premiums on the purchased
loans. In addition, due to the decline in our non-performing
loans as a result of this sale transaction, in connection with our
quarterly review of the adequacy of the allowance for loan losses,
we may experience a decline in the allowance for loan losses
through a small release of our loan loss reserves, assuming we
experience no other changes to credit quality during the
quarter.
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," "probable,"
and "potential" or the negative of these terms or other comparable
terminology. Examples of forward-looking statements include,
but are not limited to, estimates with respect to the financial
condition, results of operations and business of Hudson City
Bancorp, Inc. and Hudson City Bancorp, Inc.'s strategies,
plans, objectives, expectations, and intentions and other
statements contained in this release that are not historical
facts. Hudson City Bancorp, Inc.'s ability to predict results
or the actual effect of future plans or strategies is inherently
uncertain and actual results and performance could differ
materially from those contemplated or implied by these
forward-looking statements. They can be affected by inaccurate
assumptions Hudson City Bancorp, Inc. might make or by known or
unknown risks and uncertainties. Factors that could cause
assumptions to be incorrect include, but are not limited to,
changes in interest rates, general economic conditions and
legislative, regulatory and public policy changes. These
risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed
on such statements. For a summary of important factors that
could affect Hudson City Bancorp, Inc.'s forward-looking
statements, please refer to Hudson City Bancorp, Inc.'s filings
with the Securities and Exchange Commission available at
www.sec.gov. Hudson City Bancorp, Inc. does not intend to
update any of the forward-looking statements after the date of this
release or to conform these statements to actual events.
SOURCE Hudson City Bancorp, Inc.