Hudson City Bancorp (HCBK) Tops Q4 EPS by 3c

Hudson City Bancorp (NASDAQ: HCBK) reported Q4 EPS of $0.08, $0.03 better than the analyst estimate of $0.05.

• The Bank's Tier 1 leverage capital ratio increased to 11.74% at December 31, 2014 as compared to 10.82% at December 31, 2013. The Bank's total risk-based capital ratio increased to 28.75% at December 31, 2014 as compared to 25.31% at December 31, 2013.
• Non-performing loans decreased $197.2 million to $852.0 million at December 31, 2014 as compared to $1.05 billion at December 31, 2013 due in part to the sale of a pool of $112.1 million of non-performing residential mortgage loans guaranteed by the Federal Housing Administration ("FHA") during the third quarter of 2014. Early stage loan delinquencies (defined as loans that are 30 to 89 days delinquent) decreased $65.8 million to $407.6 million at December 31, 2014 from $473.4 million at December 31, 2013. The ratio of net charge-offs to average loans decreased to 0.16% for the year ended December 31, 2014 as compared to 0.25% for 2013.
• During 2014 the Bank began to purchase commercial real estate loans and commercial real estate loan participations which is one of the initiatives in the Company's strategic plan. During 2014, the Bank originated $86.0 million of such loans.
• Gains on the sales of mortgage-backed securities amounted to $45.9 million and $103.7 million for the quarter and year ended December 31, 2014, respectively, as compared to $11.1 million and $28.9 million for the quarter and year ended December 31, 2013, respectively.
• FDIC expense decreased $23.7 million to $49.8 million for the year ended December 31, 2014 as compared to $73.5 million for the year ended December 31, 2013.
• Our interest rate spread and net interest margin were 0.70% and 1.01%, respectively, for the fourth quarter of 2014 as compared to 1.20% and 1.47%, respectively, for the fourth quarter of 2013. For the linked third quarter of 2014, our interest rate spread and net interest margin were 0.88% and 1.18%, respectively.
• Federal funds sold and other overnight deposits increased $1.97 billion to $6.16 billion at December 31, 2014 from $4.19 billion at December 31, 2013.
• Total deposits decreased $2.09 billion, or 9.7%, to $19.38 billion at December 31, 2014 from $21.47 billion at December 31, 2013 due to our decision to maintain lower deposit rates. This allowed us to manage deposit levels at a time when there are limited investment opportunities with attractive yields to reinvest the funds received from payment activity on mortgage-related assets.

For earnings history and earnings-related data on Hudson City Bancorp (HCBK) click here.

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