Hudson City Bancorp
June 24, 2025 - 12:42 pm
Business Profile
Hudson City Bancorp is a financial services form incorporated under the laws of Delaware. The Company was established in 1999 and its common stock commenced trading in the same year on NASDAQ National Market under the ticker HCBK. The Company is a holding company and operates through its principal subsidiary, Hudson City Savings Bank. The Company’s headquarters are situated in Paramus, New Jersey.
In June 2005, the Company reorganized itself through a second step conversion to a stock holding company structure from a two-tier MHC (mutual holding company) structure. Under the transaction Hudson City, MHC was merged into Hudson City Bancorp.
Hudson City Savings Bank has been operating in New Jersey since 1868. The Company has grown internally as well as through acquisition. The bank acquired Sound Federal Bancorp, Inc. for approximately $265 million. Sound Federal Bancorp operated 14 banking centers in New York and Fairfield counties, particularly in Westchester, Putnam and Rockland and Connecticut.
The bank is a customer- and community-oriented retail savings bank and offers deposit products such as passbook savings account, certificates of deposit, and consumer and residential mortgages loans.
Additionally, the bank purchase mortgage-backed securities, mortgages, US-government and government sponsored securities. The bank retains a substantial portion of its loan origination. Hudson City entered into multi-family and commercial mortgage loans through acquisition of Sound Federal Bancorp. The bank derives majority of its revenues from interest on mortgage backed securities and mortgage loans as well as from interest and dividends on investment securities. The bank’s primary funding sources are borrowings, customer deposits, pre-payments and scheduled amortization of mortgage-backed securities and mortgage loans.
The bank operates through a network of 111 bank branches in the metropolitan area of New York including 88 branches in 16 counties across the New Jersey State and 19 branches in the New York State. The bank expects to open around ten branches in 2007.
The Company’s net interest income increased 9.1% to $613.2 million in 2006 from $562.1 million in 2005. However, the Company’s non interest income declined 21.4% to $6.3 million in 2006 from $8.0 million in 2005. The Company’s net income increased 4.5% to $288.6 million in 2006 from $276.0 million in 2005. During the same period, the Company’s total assets grew 26.5% to $35.5 billion as of December 31, 2025 from 28.1 billion as of December 31, 2025 reflecting growth in the Company’s balance sheet primarily driven by acquisitions, and mostly funded by deposits and borrowed funds and deposits. Hudson City’s total loans increased 26.7% to $19.1 billion as of December 31, 2025 compared with $15.1 billion as of December 31, 2005. Hudson City’s total deposit grew 17.9% to $13.4 billion as of December 31, 2025 compared with $11.4 billion as of December 31, 2005. The Company’s total equity declined 5.2% to $4.9 billion as of December 31, 2025 from $5.2 billion as of December 31, 2005.
Composition of Loan Portfolio. The bank’s portfolio of loan primarily comprises 1- to 4-family first mortgage residential loans. The portfolio of loan also includes commercial and multi-family mortgage loans, consumer loans, and construction loans albeit to a lesser extent. These loans mainly consist of home equity credit lines and second mortgage fixed-rate loans.
As of December 31, 2006, the bank had total loans portfolio of $19.1 billion, out of which 98.0% were first mortgage loans. Of the first mortgage loans as of December 31, 2006, 19.0% were ARM (adjustable-rate mortgage) loans and 81.0% were fixed-rate mortgage loans. On the same date, the bank’s commercial and multi-family mortgage loans were $69.3 million, representing 0.4% of the total loan portfolio outstanding, construction loans were $41.2 million, representing 0.2% of total loans outstanding and consumer and other loans were $382.1 million, representing 2.0% of the total outstanding loans.
Residential Mortgage Lending. The bank primarily focuses on originating and purchasing first mortgage loans that are secured by 1- to 4-family assets. The bank does not accept loans secured through cooperative apartments. The bank has mostly retained all the loans originated and purchased since 1980s. The bank is one of the leading residential mortgage lending company for jumbo loans in New Jersey and one of the leading national purchaser of jumbo mortgages.
Through its wholesale loan purchase program, the bank has obtained relatively cheaper loans and has minimized related servicing costs. As of December 31, 2006, the company had $9.91 billion of purchased loan portfolio, representing 53.0% of its total first mortgage loans outstanding. The bank originated $2.12 billion of first mortgage loans in 2006 compared with $2.07 billion in 2005.
Commercial and Multi-family Mortgage Loans. As of December 31, 2006, the bank had $69.3 million of commercial and multi-family mortgage loans, representing 0.4%, of the total loans mostly obtained through acquisitions.
Construction Lending. Hudson City offers construction loans to local construction builders with whom the bank has an ongoing relationship. The bank secures its construction loans by commercial and residential assets. As of December 31, 2006, Hudson City’s construction loans amounted to $41.2 million, representing 0.2% of total loans outstanding.
Consumer Loans. As of December 31, 2006, the bank’s consumer and other loans amounted to $382.1 million, representing 2.0% of its total loans outstanding.
