Hudson City Bancorp Inc.'s third-quarter profit declined more than 32% from the same period last year as historically low interest rates battered its investment portfolio.
The Paramus, N.J., thrift company said it earned $84.2 million, or 17 cents per share, in the quarter, a penny shy of consensus analysts' estimates, according to Thomson Reuters.
Hudson City Chairman and Chief Executive Ronald Hermance said in a news release Wednesday that $2 billion of the thrift's investment securities were called during the quarter, partly as a result of a rate drop for 10-year Treasury notes. The calls produced a $3.26 billion cash balance, which Hermance said will be deployed in the fourth quarter.
Total nonperforming assets rose 12.8%, to $989.7, million from a year ago, or 1.95% of total assets. However, the rate of charge-offs fell 30.3% to $18.6 million, which allowed the company to lower its provision for loan losses by 50% from a year earlier, to $25 million. "We believe that our nonperforming assets are at manageable levels," Hermance said.
The $50.9 billion-asset Hudson City
