Hudson City Bancorp, Inc. Reports a 13.8% Increase In 2006 Second Quarter Earnings
biz.yahoo.com
Wednesday July 19, 8:00 am ET
Quarterly Cash Dividend Declared of $0.075 Per Common Share
PARAMUS, N.J., July 19 /PRNewswire-FirstCall/ -- Hudson City Bancorp, Inc. (Nasdaq: HCBK), the holding company for Hudson City Savings Bank, reported today the results of its operations for the three- and six-month periods ended June 30, 2006.
Financial Highlights
-- Net income increased 13.8% to $73.2 million for the second quarter of
2006 and 17.6% to $148.4 million for the six-month period ended June
30, 2006.
-- Basic and diluted earnings per common share were $0.14 and $0.13,
respectively, for the second quarter of 2006. Basic and diluted
earnings per common share were both $0.27 for the first six months of
2006.
-- At its meeting yesterday, the Board of Directors declared a quarterly
cash dividend of $0.075 per common share. The cash dividend is payable
on September 1, 2006 to stockholders of record at the close of business
on August 4, 2006.
-- Net interest income increased 16.6% to $153.6 million for the second
quarter of 2006 and 20.9% to $311.3 million for the six-month period
ended June 30, 2006.
-- Our annualized return on average stockholders' equity and annualized
return on average assets for the second quarter of 2006 were 5.76% and
0.96%, respectively. Our annualized return on average stockholders'
equity and annualized return on average assets for the six-month period
ended June 30, 2006 were 5.78% and 1.00%.
-- Our net interest rate margin and net interest rate spread were 2.03%
and 1.36%, respectively, for the second quarter of 2006 and 2.09% and
1.41%, respectively, for the first six months of 2006.
-- Our efficiency ratio was 24.84% for the second quarter of 2006 and
24.46% for the first six months of 2006.
-- Total loans increased $1.91 billion to $16.97 billion at June 30, 2006
reflecting purchases and originations of first mortgage loans of $1.49
billion and $1.18 billion, respectively, during the first six months of
2006.
-- Non-performing loans as a percent of total loans decreased to 0.11% as
of June 30, 2006. The allowance for loan losses as a percent of non-
performing loans increased to 150.45%.
-- Borrowed funds increased $3.20 billion to $14.55 billion at June 30,
2006. The funds borrowed during the first six months of 2006 amounted
to $4.10 billion and have maturities of ten years and initial call
dates ranging from one to three years.
-- In June 2006, the Board of Directors approved our seventh stock
repurchase program for repurchase of up to 56,975,000 shares of common
stock.
"This past quarter we celebrated the one-year anniversary of the closing of our highly successful second-step conversion and stock offering, enjoying an increase in the price of our stock in excess of thirty percent during that time," said Ronald E. Hermance, Jr., Chairman, President and Chief Executive Officer. "During this year we have also experienced a flat yield curve, which has placed considerable pressure on our net interest margin and net interest spread. However, the capital we raised from the offering has given us the ability to continue to grow our assets, at an annualized rate in excess of 20%, which, coupled with our continued efficient operation, has mitigated the effects of the shrinking net interest margin. This growth, however, has not been at the expense of credit quality, as we have experienced a year-to-date decrease in non-performing loans. We intend to continue to grow our assets, using the same conservative underwriting and asset selection standards as in the past, while also paying dividends and repurchasing our common stock as part of our capital management strategy. Further, the recently completed Sound Federal acquisition complements this strategy, moving our franchise into new markets with similar demographics to our current franchise area", added Mr. Hermance. |
