Hudson City Bancorp's first-quarter earnings rose 17%, but the New Jersey-based regional bank saw both its loan-loss provisions and net charge-offs climb.

Though he noted there are signs the economy and housing markets are stabilizing, Chief Executive Ronald E. Hermance Jr. warned the elevated level of unemployment and the extended length of time that it takes to complete a foreclosure may continue to result in higher levels of nonperforming loans going forward. In the most recent period, they increased by $117.2 million, to $744.9 million.

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