Hudson City Disposes $112.1 Million Non-Performing Loans - Analyst Blog

Hudson City Bancorp, Inc. (HCBK), the Paramus, NJ-based financial savings and loan firm, recently disposed $112.1 million of non-performing loans. Per the announcement, Hudson City sold back a pool of residential mortgage loans (supported by Federal Housing Administration (FHA) to the financial institution from which it originally purchased the loans. Notably, the entire residential mortgage loans were non-performing as of Jun 30, 2014.

Disposition of the non-performing loans to the financial institution was in accordance with the original repurchase agreement between the bank and the financial institution. As per the original agreement, this disposition fetched Hudson City 100% of the outstanding unpaid principal balance on the loans along with all accrued and unpaid interest on the loans from the financial institution.

Hudson City, through its subsidiary, Hudson City Savings Bank, offers financial services such as traditional deposit products, consumer loans and residential real estate mortgage loans mainly to individuals and families. Following the disposition, the bank expects a charge of around $2.9 million on the allowance for loan losses, due to the write-off of unamortized premiums on the purchased loans.

The bank also believes that due to the decline in non-performing loans, there will possibly be a decline in the allowance for loan losses as well, under the assumption that there will be no change in the credit quality.

Hudson City currently carries a Zacks Rank #3 (Hold). Some better-ranked financial savings and loan institutions include Great Southern Bancorp Inc. (GSBC), Laporte Bancorp, Inc. (LPSB) and OceanFirst Financial Corp. (OCFC). All these stocks sport a Zacks Rank #1 (Strong Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HUDSON CITY BCP (HCBK): Free Stock Analysis Report
 
GREAT SOUTH BCP (GSBC): Free Stock Analysis Report
 
LAPORTE BANCORP (LPSB): Get Free Report
 
OCEANFIRST FINL (OCFC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!