Hudson City Bancorp Inc. swung to a fourth-quarter loss as the lender paid off about $4.3 billion in high-cost debt, though loan-loss provisions and charge-offs declined.
Like many others in the industry, the New Jersey bank holding company has seen results in recent quarters hindered by persistently low interest rates in the U.S.
Hudson City reported a loss of $360.5 million, or 73 cents a share, compared with a year-earlier profit of $121.2 million, or 25 cents a share. Debt extinguishment costs resulted in an after-tax charge of $416.8 million in the latest quarter, which the company had warned of last month.
Net interest income declined 18% to $207 million.
Analysts polled by Thomson Reuters expected a loss of 74 cents and net interest income of $228 million.
Loan-loss provisions were $25 million, down from $45 million set aside a year earlier. Net charge-offs, or loans banks don't expect to collect, fell to $20 million from $24.7 million.
Shares were down 1.4% at $7 premarket. As of Tuesday's close, the stock was up 18% over the past three months.
