Hudson City Bancorp 3Q profit rises 11 percent

Hudson City 3Q profit rises 11 pct as its net interest margin rose, it did more refinancings

• On 2:07 pm EDT, Wednesday October 21, 2009

PARAMUS, N.J. (AP) -- Hudson City Bancorp Inc., a holding company for Hudson City Savings Bank, said Wednesday its third-quarter profit rose 11 percent as it increased its net interest margin, acquired more retail loans through refinancings and increased its deposits.

The Paramus, N.J.-based bank holding company earned $135.1 million, or 27 cents per share, in the quarter ended Sept. 30. That is up from the $121.9 million, or 25 cents per share, it earned a year earlier.

The quarterly per-share profit beat a 26 cent per share consensus estimate of analysts polled by Thomson Reuters.

Net interest income grew 28 percent to $325.5 million from $255.1 million.

And the company said it set aside $40 million to cover loan losses during the quarter, when net charge-offs amounted to $13.2 million.

Hudson City said loan originations grew in part because of a rise in mortgage refinancings spurred by historically low interest rates.

Total noninterest income rose to $2.5 million from $2.2 million.

The company's board declared a quarterly dividend of 15 cents to be paid Nov. 27 to shareholders of record as of Nov. 6.

Hudson City shares fell 5 cents to $13.07 in early afternoon trading.