Hudson City Bancorp Earnings: Shorts Covering
S&P 500 (NYSE:SPY) component Hudson City Bancorp, Inc. (NASDAQ:HCBK) reported its results for the first quarter. Hudson City Bancorp, Inc. is a holding company for Hudson City Savings Bank which is a retail savings bank offering traditional deposit products, consumer loans and residential real estate mortgage loans.
Hudson City Bancorp Earnings Cheat Sheet for the First Quarter
Results: Swung to a loss of $555.7 million (loss of $1.13/diluted share) in the quarter. The savings and loan company had net income of $148.9 million or 30 cents per share in the year earlier quarter.
Revenue: Noninterest income was $105.2 million.
Actual vs. Wall St. Expectations: HCBK was about in line with expectations as the mean analyst estimate was a loss of $1.14/share. Estimates ranged from a loss of $1.05 per share to a loss of $1.20 per share.
Quoting Management: Ronald E. Hermance, Jr., Chairman and Chief Executive Officer commented, “As we announced in March, we completed a restructuring of our balance sheet in the first quarter of 2011 which resulted in an after-tax charge to earnings of $649.3 million. We believe that the restructuring transaction mitigates our interest rate risk, realigns our funding mix and positions us to eventually return to our core strategy of loan portfolio growth.”
HCBK’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $121.2 million in the fourth quarter of the last fiscal year, a profit of $124.6 million in the third quarter of the last fiscal year and $142.6 million in the second of the last fiscal year.
Competitors to Watch: Bank of America (NYSE:BAC), Deutsche Bank (NYSE:DB), JPMorgan Chase (NYSE:JPM), HSBC (NYSE:HBC), U.S. Bancorp (NYSE:USB), Financials (NYSE:XLF) and Wells Fargo & Company (NYSE:WFC).
Today’s Performance: Shares of HCBK are trading up 1% from the previous close.