Hudson City Beats By One Penny

This morning, Hudson City Bancorp ($HCBK) reported Q2 earnings of 15 cents per share which was one penny more than Wall Street’s consensus.

The good news is that the bank is still profitable and they’re continuing their quarterly dividend payout of eight cents per share. The bad news is that they’re getting squeezed by ultra-low interest rates. The acting CEO said:

Over the past several quarters, we have discussed the challenges facing our traditional residential portfolio lending model. The extraordinarily low market interest rates combined with the GSEs participation in the mortgage market persist and make it difficult for us to profitably grow our business in the same manner as we have in the past. It is apparent that these market conditions are likely to continue for the foreseeable future. Accordingly, we have been developing a variety of strategies to help us adapt to the new environment in which we operate.

Posted by on July 25th, 2012 at 11:02 am


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