Hudson City Bancorp in Paramus, N.J., has sold $112.1 million in delinquent, FHA-backed mortgages.

The $38 billion-asset company said in a press release late Thursday that an unnamed financial institution exercised a repurchase right for the pool of loans. Hudson City received the entire unpaid balance of the loans, plus unpaid interest, though a purchase price was not disclosed.

Hudson City expects to charge $2.9 million to its loan-loss reserve to cover its writeoff of the loans. The company also said its loan-loss provision may decline, due to a "small release of our loan-loss reserves, assuming we experience no other changes to credit quality during the quarter."

The announcement comes ahead of the company’s third-quarter earnings release. It also comes amid uncertainty surrounding its August 2012 agreement to sell itself to the $90 billion-asset M&T in Buffalo, N.Y. The deal has been delayed since regulators pushed M&T to tighten its anti-money-laundering controls.

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