Hudson City Bancorp Inc. (HCBK, Financial) filed Quarterly Report for the period ended 2010-09-30.
Hudson City Bancorp Inc. has a market cap of $6.31 billion; its shares were traded at around $11.98 with a P/E ratio of 10.7 and P/S ratio of 2.12. The dividend yield of Hudson City Bancorp Inc. stocks is 5.01%. Hudson City Bancorp Inc. had an annual average earning growth of 32.2% over the past 10 years. GuruFocus rated Hudson City Bancorp Inc. the business predictability rank of 4.5-star.HCBK is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., David Dreman of Dreman Value Management, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Richard Aster Jr of Meridian Fund, Mario Gabelli of GAMCO Investors, Kenneth Fisher of Fisher Asset Management, LLC.
Total non-interest expense increased $2.8 million, or 4.5%, to $65.7 million for the third quarter of 2010 from $62.9 million for the third quarter of 2009. The increase is primarily due to an increase of $4.1 million in Federal deposit insurance expense due primarily to an increase in total deposits. The increase in Federal deposit insurance expense was partially offset by a $2.0 million decrease in compensation and employee benefits expense. Total non-interest expense decreased $5.9 million, or 2.9%, to $196.8 million for the first nine months of 2010 from $202.7 million for the first nine months of 2009 due primarily to the absence of the FDIC special assessment of $21.1 million and a $4.2 million decrease in compensation and employee benefits expense, primarily due to a decrease in stock benefit plan expense. These decreases were partially offset by an increase of $17.6 million in Federal deposit insurance expense.
Total securities increased $406.7 million to $26.77 billion at September 30, 2010 from $26.36 billion at December 31, 2009. The increase in securities was primarily due to purchases of mortgage-backed and investment securities of $8.88 billion and $5.90 billion, respectively, partially offset by principal collections on mortgage-backed securities of $6.36 billion and sales of mortgage-backed securities with an amortized cost of $1.90 billion and calls of investment securities of $6.07 billion. The securities purchased were all issued by GSEs. Total securities decreased $182.6 million from June 30, 2010 as we slowed our growth rate from the 2009 levels since the low yields that are available to us for mortgage-related assets and investment securities have made a growth strategy less prudent until market conditions improve.
Our net loans decreased $94.6 million during the nine months ended September 30, 2010 to $31.63 billion. The decrease in loans primarily reflects the elevated levels of loan repayments during 2010 as a result of continued low market interest rates. Historically, our focus has been on loan portfolio growth through the origination of one- to four-family first mortgage loans in New Jersey, New York, Pennsylvania and Connecticut and, to a lesser extent, the purchases of mortgage loans. During the first nine months of 2010, we originated $4.28 billion and purchased $580.1 million of loans, compared to originations of $4.66 billion and purchases of $2.45 billion for the same period in 2009. The origination and purchases of loans were offset by principal repayments of $4.74 billion in the first nine months of 2010 as compared to $5.34 billion for the first nine months of 2009. Loan originations continue to be strong as a result of elevated levels of mortgage refinancing activity caused by low market interest rates. The refinancing activity has also caused increased levels of repayments to continue in 2010 as some of our customers refinanced with other banks. Our loan purchase activity has significantly declined as the GSEs have been actively purchasing loans as part of their efforts to keep mortgage rates low to support the housing market during the recent economic recession. As a result, the sellers from whom we have historically purchased loans are selling to the GSEs. We expect that the amount of loan purchases may continue to be at reduced levels for the near-term.
Total deposits increased $336.6 million, or 1.4%, to $24.91 billion at September 30, 2010 as compared to $24.58 billion at December 31, 2009. The increase in total deposits reflected a $413.8 million increase in our interest-bearing transaction accounts and savings accounts and a $37.6 million increase in our time deposits. These increases were partially offset by a decrease of $119.5 million in our money market accounts. The increase in our interest-bearing transaction accounts is primarily due to a $322.7 million increase in our High Value checking account product. Deposit flows are typically affected by the level of market interest rates, the interest rates and products offered by competitors, the volatility of equity markets, and other factors. Our deposit growth slowed during the first nine months of 2010. During the third quarter of 2010, deposits decreased by $253.8 million from June 30, 2010 and have decreased 474.2 million since March 31, 2010. We lowered our deposit rates to slow our deposit growth from the 2009 levels since the low yields that are available to us for mortgage-related assets and investment securities have made a growth strategy less prudent until market conditions improve. We had 135 branches at September 30, 2010 as compared to 131 branches at December 31, 2009.
Total shareholders equity increased $283.6 million to $5.62 billion at September 30, 2010 as compared to $5.34 billion at December 31, 2009. The increase was primarily due to net income of $416.0 million for the nine months ended September 30, 2010 and a $68.0 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 $221.8 million. The accumulated other comprehensive income of $252.5 million at September 30, 2010 included a $273.0 million after-tax net unrealized gain on securities available-for-sale ($461.5 million pre-tax) partially offset by a $20.5 million after-tax accumulated other comprehensive loss related to the funded status of our employee benefit plans.
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Hudson City Bancorp Inc. has a market cap of $6.31 billion; its shares were traded at around $11.98 with a P/E ratio of 10.7 and P/S ratio of 2.12. The dividend yield of Hudson City Bancorp Inc. stocks is 5.01%. Hudson City Bancorp Inc. had an annual average earning growth of 32.2% over the past 10 years. GuruFocus rated Hudson City Bancorp Inc. the business predictability rank of 4.5-star.HCBK is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., David Dreman of Dreman Value Management, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Richard Aster Jr of Meridian Fund, Mario Gabelli of GAMCO Investors, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:
Total non-interest income was $33.9 million for the third quarter of 2010 as compared to $2.5 million for the same quarter in 2009. Included in non-interest income were net gains on securities transactions of $31.0 million, which resulted from the sale of $810.7 million of mortgage-backed securities available-for-sale. Total non-interest income for the nine months ended September 30, 2010 was $100.1 million compared with $31.4 million for the comparable period in 2009. Included in non-interest income for the nine months ended September 30, 2010 were net gains on securities transactions of $92.4 million which resulted from the sale of $1.90 billion of mortgage-backed securities available-for-sale. Included in non-interest income for the nine months ended September 30, 2009 were net gains on securities transactions of $24.2 million substantially all of which resulted from the sale of $761.6 million of mortgage-backed securities available-for-sale.Total non-interest expense increased $2.8 million, or 4.5%, to $65.7 million for the third quarter of 2010 from $62.9 million for the third quarter of 2009. The increase is primarily due to an increase of $4.1 million in Federal deposit insurance expense due primarily to an increase in total deposits. The increase in Federal deposit insurance expense was partially offset by a $2.0 million decrease in compensation and employee benefits expense. Total non-interest expense decreased $5.9 million, or 2.9%, to $196.8 million for the first nine months of 2010 from $202.7 million for the first nine months of 2009 due primarily to the absence of the FDIC special assessment of $21.1 million and a $4.2 million decrease in compensation and employee benefits expense, primarily due to a decrease in stock benefit plan expense. These decreases were partially offset by an increase of $17.6 million in Federal deposit insurance expense.
Total securities increased $406.7 million to $26.77 billion at September 30, 2010 from $26.36 billion at December 31, 2009. The increase in securities was primarily due to purchases of mortgage-backed and investment securities of $8.88 billion and $5.90 billion, respectively, partially offset by principal collections on mortgage-backed securities of $6.36 billion and sales of mortgage-backed securities with an amortized cost of $1.90 billion and calls of investment securities of $6.07 billion. The securities purchased were all issued by GSEs. Total securities decreased $182.6 million from June 30, 2010 as we slowed our growth rate from the 2009 levels since the low yields that are available to us for mortgage-related assets and investment securities have made a growth strategy less prudent until market conditions improve.
Our net loans decreased $94.6 million during the nine months ended September 30, 2010 to $31.63 billion. The decrease in loans primarily reflects the elevated levels of loan repayments during 2010 as a result of continued low market interest rates. Historically, our focus has been on loan portfolio growth through the origination of one- to four-family first mortgage loans in New Jersey, New York, Pennsylvania and Connecticut and, to a lesser extent, the purchases of mortgage loans. During the first nine months of 2010, we originated $4.28 billion and purchased $580.1 million of loans, compared to originations of $4.66 billion and purchases of $2.45 billion for the same period in 2009. The origination and purchases of loans were offset by principal repayments of $4.74 billion in the first nine months of 2010 as compared to $5.34 billion for the first nine months of 2009. Loan originations continue to be strong as a result of elevated levels of mortgage refinancing activity caused by low market interest rates. The refinancing activity has also caused increased levels of repayments to continue in 2010 as some of our customers refinanced with other banks. Our loan purchase activity has significantly declined as the GSEs have been actively purchasing loans as part of their efforts to keep mortgage rates low to support the housing market during the recent economic recession. As a result, the sellers from whom we have historically purchased loans are selling to the GSEs. We expect that the amount of loan purchases may continue to be at reduced levels for the near-term.
Total deposits increased $336.6 million, or 1.4%, to $24.91 billion at September 30, 2010 as compared to $24.58 billion at December 31, 2009. The increase in total deposits reflected a $413.8 million increase in our interest-bearing transaction accounts and savings accounts and a $37.6 million increase in our time deposits. These increases were partially offset by a decrease of $119.5 million in our money market accounts. The increase in our interest-bearing transaction accounts is primarily due to a $322.7 million increase in our High Value checking account product. Deposit flows are typically affected by the level of market interest rates, the interest rates and products offered by competitors, the volatility of equity markets, and other factors. Our deposit growth slowed during the first nine months of 2010. During the third quarter of 2010, deposits decreased by $253.8 million from June 30, 2010 and have decreased 474.2 million since March 31, 2010. We lowered our deposit rates to slow our deposit growth from the 2009 levels since the low yields that are available to us for mortgage-related assets and investment securities have made a growth strategy less prudent until market conditions improve. We had 135 branches at September 30, 2010 as compared to 131 branches at December 31, 2009.
Total shareholders equity increased $283.6 million to $5.62 billion at September 30, 2010 as compared to $5.34 billion at December 31, 2009. The increase was primarily due to net income of $416.0 million for the nine months ended September 30, 2010 and a $68.0 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 $221.8 million. The accumulated other comprehensive income of $252.5 million at September 30, 2010 included a $273.0 million after-tax net unrealized gain on securities available-for-sale ($461.5 million pre-tax) partially offset by a $20.5 million after-tax accumulated other comprehensive loss related to the funded status of our employee benefit plans.
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