We Have Reached Hudson City (NASDAQ: HCBK)

BUFFALO - Hudson City Bancorp, Inc reported today that net income for the third quarter of 2010 amounted to $124.6 million or 25 cents a share as compared to $135.1 million for the third quarter of 2009.

Ronald E. Hermance, Jr., Chairman, President and Chief Executive Officer commented, "The continued low interest rate environment further negatively impacted our net interest margin in the third quarter. We believe that these historically-low market interest rates coupled with the expected second round of quantitative easing by the Federal Reserve Board will continue to place pressure on our net interest margin for the remainder of 2010. "

HCBK also saw modest growth in their non performing loans increased slightly in the quarter. However there allowance for these non performing loans also increased. The tangible book value per share increased to $11.08 from $10.93 in the prior quarter.

Shares of HCBK are pointing in a lower direction despite positive results as trraders have used HCBK's light volume to sell the stock on earnings release dates.

Hudson City Set to Report

NEW YORK- Shares of the largest thrift in the country Hudson City Bancorp is set to report their quarter 3 results tomorrow morning. A thrift is a specialized bank that only deals with mortgages and deposits. If the past is any indication of the future then shares of HCBK will likely decline tomorrow. Shares have declined by over 4% on the day of their last two earnings reports despite near record results. Investors will be examining Hudson City's non-performing loans as well as how true its profit is. Some investors have begun to question the profit of Hudson City as it has realized gains from available for sale investments over the last few quarters which has increased their earnings. Available for sale investments is an accounting rule which will soon be replaced but one that allows for companies to essentially choose when it reports a profit. It is important to note that the gains from these investments are relatively small compared to the actual earnings for Hudson City.

Hudson City has posted increasing earnings over the last two years despite a recessionary environment. In spite of this the shares are well below their price of 2 years ago.

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