Hudson City Bancorp (HCBK) Erases $4.3 Billion in Debt
Hudson City Bancorp (HCBK: Charts, News, Offers), one of the few fiscally responsible banks which refrained from partaking of TARP funds, has been brutally punished over the past year. Shares were slashed in half, plunging far below book value, after the bank reported quarter after quarter of disappointing (albeit narrowing) losses due to the squeeze of low interest rates. Finally, on December 16, Hudson City announced some encouraging news for shareholders - that it had extinguished $4.3 billion of debt with its existing cash position. The bank's Tier 1 leverage capital ratio remains extremely secure after the repayments, and is considered to be well capitalized and cushioned from regulatory requirements. Although Hudson City still expects to report a net loss for the fourth quarter of 2011, without the after-tax charge of $440.7 million, or 89 cents per share, from the extinguishment, the bank would have actually reported a profit. This is huge news for Hudson City shareholders, which signals that 2012 will likely be a year of strong recovery as the bank finally bounces back into the black. Although its earnings position is now improved, Hudson City does not intend to increase its dividend, which it slashed by 41% back in April to conserve cash.
At this point you lost b_r, "refrained" means hcbk did NOT take TARP, LOL!!!! ------------------ Hudson City Bancorp (HCBK: Charts, News, Offers), one of the few fiscally responsible banks which refrained from partaking of TARP funds