Hudson City Bancorp Inc. (HCBK, Financial) filed Quarterly Report for the period ended 2009-06-30.
HUDSON CITY BANCCORP is a bank holding company. Through its subsidiary Hudson City Savings they are a community and customer-oriented savings bank that provides financial services primarily to individuals and families. Hudson City Savings is a community and customer-oriented retail savings bank offering traditional deposit products residential real estate mortgage loans and consumer loans. Hudson City Bancorp Inc. has a market cap of $7.56 billion; its shares were traded at around $14.5 with a P/E ratio of 14.6 and P/S ratio of 2.8. The dividend yield of Hudson City Bancorp Inc. stocks is 4.1%. Hudson City Bancorp Inc. had an annual average earning growth of 34% over the past 5 years.
Total non-interest expense increased $36.6 million, or 75.8%, to $84.9 million for the second quarter of 2009 from $48.3 million for the second quarter of 2008. The increase is primarily due to the Federal Deposit Insurance Corporation (FDIC) special assessment of $21.1 million and increases of $9.3 million in Federal deposit insurance expense, $5.1 million in compensation and employee benefits expense, $382,000 in net occupancy expense, and $772,000 in other non-interest expense. Total non-interest expense increased $43.3 million, or 44.9%, to $139.7 million for the first six months of 2009 from $96.4 million for the same period in 2008. The increase is primarily due to the FDIC special assessment of $21.1 million and increases of $11.5 million in Federal deposit insurance expense, $6.3 million in compensation and employee benefits expense, and $3.0 million in other non-interest expense.
Total securities increased $1.67 billion to $24.62 billion at June 30, 2009 from $22.95 billion at December 31, 2008. The increase in securities was primarily due to purchases (including purchases recorded in the second quarter of 2009 with settlement dates after June 30, 2009) of mortgage-backed and investment securities of $3.16 billion and $3.32 billion, respectively, partially offset by principal collections on mortgage-backed securities of $1.94 billion and sales of mortgage-backed securities of $761.6 million and calls of investment securities of $2.27 billion.
Loans increased $1.28 billion, or 4.3%, to $30.72 billion at June 30, 2009 from $29.44 billion at December 31, 2008 due primarily to the origination of residential first mortgage loans in New Jersey, New York and Connecticut as well as our continued loan purchase activity. For the first six months of 2009, we originated $2.97 billion and purchased $1.88 billion of loans, compared to originations of $2.42 billion and purchases of $2.17 billion for the comparable period in 2008. The origination and purchases of loans were partially offset by principal repayments of $3.50 billion in the first six months of 2009 as compared to $1.54 billion for the first six months of 2008. Loan originations have increased due primarily to our competitive rates and an increase in mortgage refinancing caused by market interest rates that are at near-historic lows. The increase in refinancing activity occurring in the marketplace has also caused an increase in principal repayments during the first six months of 2009.
Borrowings amounted to $30.03 billion at June 30, 2009 as compared to $30.23 billion at December 31, 2008. The decrease in borrowed funds was the result of repayments of $950.0 million with a weighted average rate of 1.63%, largely offset by $750.0 million of new borrowings at a weighted-average rate of 1.69%. During the second quarter of 2009, we modified $300.0 million of borrowings to extend the maturity and call dates of the borrowings by between two and three years. The underlying interest rates remained unchanged. Borrowed funds at June 30, 2009 were comprised of $14.93 billion of FHLB advances and $15.10 billion of securities sold under agreements to repurchase.
Total shareholders equity increased $204.5 million to $5.14 billion at June 30, 2009 from $4.94 billion at December 31, 2008. The increase was primarily due to net income of $255.6 million for the six months ended June 30, 2009 and a $102.1 million increase in accumulated other comprehensive income, primarily due to an increase in the net unrealized gain on securities available-for-sale. These increases to shareholders equity were partially offset by cash dividends paid to common shareholders of $141.4 million and repurchases of our common stock of $43.5 million.
Read the The complete ReportHCBK is in the portfolios of John Keeley of Keeley Fund Management, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC.
HUDSON CITY BANCCORP is a bank holding company. Through its subsidiary Hudson City Savings they are a community and customer-oriented savings bank that provides financial services primarily to individuals and families. Hudson City Savings is a community and customer-oriented retail savings bank offering traditional deposit products residential real estate mortgage loans and consumer loans. Hudson City Bancorp Inc. has a market cap of $7.56 billion; its shares were traded at around $14.5 with a P/E ratio of 14.6 and P/S ratio of 2.8. The dividend yield of Hudson City Bancorp Inc. stocks is 4.1%. Hudson City Bancorp Inc. had an annual average earning growth of 34% over the past 5 years.
Highlight of Business Operations:
The provision for loan losses amounted to $32.5 million for the second quarter of 2009 and $52.5 million for the six months ended June 30, 2009 as compared to $3.0 million and $5.5 million for the same respective periods in 2008. The increase in the provision for loan losses reflects the risks inherent in our loan portfolio due to decreases in real estate values in our lending markets, the increase in non-performing loans, the increase in loan charge-offs and worsening economic conditions, particularly rising levels of unemployment. Non-performing loans amounted to $430.9 million or 1.40% of total loans at June 30, 2009 as compared to $217.6 million or 0.74% of total loans at December 31, 2008. Net charge-offs amounted to $9.6 million for the second quarter of 2009 and $14.2 million for the six months ended June 30, 2009 as compared to $694,000 and $1.2 million for the same respective periods in 2008. The increase in non-performing loans reflects the current economic recession coupled with the continued deterioration of the housing market. The conditions in the housing market are evidenced by declining house prices, reduced levels of home sales, increasing inventories of houses on the market, and an increase in the length of time houses remain on the market.Total non-interest expense increased $36.6 million, or 75.8%, to $84.9 million for the second quarter of 2009 from $48.3 million for the second quarter of 2008. The increase is primarily due to the Federal Deposit Insurance Corporation (FDIC) special assessment of $21.1 million and increases of $9.3 million in Federal deposit insurance expense, $5.1 million in compensation and employee benefits expense, $382,000 in net occupancy expense, and $772,000 in other non-interest expense. Total non-interest expense increased $43.3 million, or 44.9%, to $139.7 million for the first six months of 2009 from $96.4 million for the same period in 2008. The increase is primarily due to the FDIC special assessment of $21.1 million and increases of $11.5 million in Federal deposit insurance expense, $6.3 million in compensation and employee benefits expense, and $3.0 million in other non-interest expense.
Total securities increased $1.67 billion to $24.62 billion at June 30, 2009 from $22.95 billion at December 31, 2008. The increase in securities was primarily due to purchases (including purchases recorded in the second quarter of 2009 with settlement dates after June 30, 2009) of mortgage-backed and investment securities of $3.16 billion and $3.32 billion, respectively, partially offset by principal collections on mortgage-backed securities of $1.94 billion and sales of mortgage-backed securities of $761.6 million and calls of investment securities of $2.27 billion.
Loans increased $1.28 billion, or 4.3%, to $30.72 billion at June 30, 2009 from $29.44 billion at December 31, 2008 due primarily to the origination of residential first mortgage loans in New Jersey, New York and Connecticut as well as our continued loan purchase activity. For the first six months of 2009, we originated $2.97 billion and purchased $1.88 billion of loans, compared to originations of $2.42 billion and purchases of $2.17 billion for the comparable period in 2008. The origination and purchases of loans were partially offset by principal repayments of $3.50 billion in the first six months of 2009 as compared to $1.54 billion for the first six months of 2008. Loan originations have increased due primarily to our competitive rates and an increase in mortgage refinancing caused by market interest rates that are at near-historic lows. The increase in refinancing activity occurring in the marketplace has also caused an increase in principal repayments during the first six months of 2009.
Borrowings amounted to $30.03 billion at June 30, 2009 as compared to $30.23 billion at December 31, 2008. The decrease in borrowed funds was the result of repayments of $950.0 million with a weighted average rate of 1.63%, largely offset by $750.0 million of new borrowings at a weighted-average rate of 1.69%. During the second quarter of 2009, we modified $300.0 million of borrowings to extend the maturity and call dates of the borrowings by between two and three years. The underlying interest rates remained unchanged. Borrowed funds at June 30, 2009 were comprised of $14.93 billion of FHLB advances and $15.10 billion of securities sold under agreements to repurchase.
Total shareholders equity increased $204.5 million to $5.14 billion at June 30, 2009 from $4.94 billion at December 31, 2008. The increase was primarily due to net income of $255.6 million for the six months ended June 30, 2009 and a $102.1 million increase in accumulated other comprehensive income, primarily due to an increase in the net unrealized gain on securities available-for-sale. These increases to shareholders equity were partially offset by cash dividends paid to common shareholders of $141.4 million and repurchases of our common stock of $43.5 million.
Read the The complete ReportHCBK is in the portfolios of John Keeley of Keeley Fund Management, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC.
