Hudson City Bancorp, Inc. Reports First Quarter 2001 Earnings

Quarterly Cash Dividend Increased to $0.11 Per Common Share



Third Stock Repurchase Program Announced



Apr 12, 2001, 01:00 ET from Hudson City Bancorp, Inc.

    PARAMUS, N.J., April 12 /PRNewswire/ --
 Hudson City Bancorp, Inc. (Nasdaq:   HCBK), the holding company for Hudson City
 Savings Bank, reported today the results of its operations for the three month
 period ended March 31, 2001.  Net income was $30.7 million for the first
 quarter of 2001, an increase of $2.4 million, or 8.5%, compared with net
 income of $28.3 million for the first quarter of 2000.  Basic and diluted
 earnings per common share were $0.30 and $0.29, respectively, for the first
 quarter of 2001 compared with basic and diluted earnings per common share of
 $0.25 for the first quarter of 2000.
     Hudson City Bancorp's annualized return on average assets and annualized
 return on average equity for the first quarter of 2001 were 1.29% and 8.60%,
 respectively, compared with 1.31% and 7.72%, respectively, for the
 corresponding quarter of 2000.
 
     Dividend Declared
     Hudson City Bancorp also reported that the Board of Directors declared a
 quarterly cash dividend of $0.11 per common share, representing an increase
 from the $0.10 per common share declared during the previous quarter.  Leonard
 S. Gudelski, Chairman and Chief Executive Officer, noted, "I am pleased that
 the Board has once again raised the cash dividend on our common stock.  This
 quarter's increase represents the fifth consecutive increase of our dividend."
 The dividend is payable on June 1, 2001 to stockholders of record at the close
 of business on May 11, 2001.
 
     Stock Repurchase Programs
     The Board of Directors announced today that it has approved a third stock
 repurchase program to repurchase up to 5,200,000 shares, or approximately 5%,
 of our common stock outstanding.  There are approximately 185,934 additional
 shares to be repurchased under the previous stock repurchase program.  Under
 the approved stock repurchase program, Hudson City Bancorp will purchase the
 shares of common stock in the open market and other transactions from
 time-to-time, depending on market conditions.  The repurchased shares are
 expected to be held as treasury stock for general corporate use.  At March 31,
 2001, Hudson City Bancorp had 104,638,200 shares outstanding and 11,000,100
 shares held as treasury stock.
 
     Annual Meeting
     Hudson City Bancorp has scheduled its 2001 Annual Meeting of Stockholders
 for May 17, 2001.  The voting record date for stockholders was March 29, 2001.
 
     Statement of Financial Condition Summary
     Total assets increased $237.5 million, or 2.5%, to $9.62 billion at March
 31, 2001 from $9.38 billion at December 31, 2000.  The increase in total
 assets reflects an increase in loans of $185.5 million through March 31, 2001.
 Hudson City Bancorp originated and purchased first mortgage loans of
 approximately $331.8 million and $242.8 million, respectively, for the three
 month periods ended March 31, 2001 and 2000.  Loan originations and purchases
 were concentrated primarily in one- to four-family mortgage loans.  The
 decrease in investment securities available for sale was primarily due to
 calls of $320.9 million for the three month period ended March 31, 2001, due
 to the lower interest rate environment in 2001.  The funds received from the
 calls on investment securities were reinvested primarily in mortgage-backed
 securities.  Federal funds sold increased $53.2 million for the period ended
 March 31, 2001.
     Total liabilities increased $361.3 million, or 4.6%, to $8.28 billion at
 March 31, 2001 from $7.92 billion at December 31, 2000.  The increase in total
 liabilities reflects an increase in borrowed funds of $200.0 million and an
 increase in total deposits of $145.6 million for the three month period ended
 March 31, 2001.  Within total deposits, time deposits increased $119.4
 million, noninterest-bearing demand deposits increased $20.1 million, and
 other non-maturity deposits increased $6.1 million for the period ended March
 31, 2001.  These increases in liabilities were primarily used to fund asset
 growth.
     Overall, total stockholders' equity decreased $123.8 million, or 8.5%, to
 $1.34 billion at March 31, 2001 from $1.46 billion at December 31, 2000.
 Increasing stockholders' equity during the first quarter of 2001 was net
 income of $30.7 million and an unrealized gain of $2.8 million in accumulated
 other comprehensive loss, due to increases in the market values of our
 investment securities available for sale.  Decreasing stockholders' equity
 during the first quarter of 2001 was $10.6 million of cash dividends declared
 and paid to common stockholders and purchases of treasury stock of $149.2
 million.
 
     Statement of Income Summary
     Total interest income for the three months ended March 31, 2001 increased
 $23.2 million, or 16.1%, to $167.3 million compared with $144.1 million for
 the three months ended March 31, 2000.  This increase was due to an increase
 in the average balance of total interest-earning assets of $864.0 million, or
 10.2%, to $9.34 billion and an increase in the annualized average yield on
 total interest-earning assets of 37 basis points to 7.17% for the three month
 period ended March 31, 2001 compared with the prior year period.  The increase
 in the average balance of interest-earning assets reflects an increase in the
 average balance of first mortgage loans of $515.3 million and an increase in
 the average balance of mortgage-backed securities of $256.0 million.  The
 increase in the annualized average yield of interest-earning assets for the
 three month period ended March 31, 2001 primarily reflects an increase in the
 annualized average yield of our first mortgage loans of 22 basis points to
 7.47% and an increase in the annualized average yield of our mortgage-backed
 securities of 67 basis points to 7.01%.
     Total interest expense increased $19.8 million, or 24.5%, to
 $100.5 million for the first quarter of 2001 compared with $80.7 million for
 the corresponding quarter of 2000.  This increase was due to an increase in
 the average balance of interest-bearing liabilities of $918.1 million to
 $7.69 billion and an increase in the annualized average cost of total
 interest-bearing liabilities of 51 basis points to 5.30% for the three month
 period ended March 31, 2001 compared with the prior year period.  The increase
 in the average balance of interest-bearing liabilities reflects an increase in
 the average balance of borrowed funds of $948.1 million for the quarter ended
 March 31, 2001 compared with the prior year quarter.  The increase in the
 annualized average cost of interest-bearing liabilities for the first quarter
 of 2001 reflects an increase in the annualized average cost of time deposits
 of 55 basis points to 5.87% and an increase in the annualized average cost of
 borrowed funds of 13 basis points to 6.06%.  Also, the increase in the
 annualized average cost of interest-bearing liabilities reflects the continued
 shift to a higher percentage of borrowed funds in our interest-bearing
 liability mix.
     Net interest income for the three months ended March 31, 2001 increased
 $3.4 million, or 5.4%, to $66.8 million compared with $63.4 million for the
 corresponding period of 2000.  Net interest rate spread was 1.87% for the
 first quarter of 2001 compared with 2.01% for the corresponding period in
 2000.  For the first quarter of 2001, net interest margin, determined by
 dividing net interest income by average interest-earning assets, was
 2.80% compared with 2.97% for the corresponding 2000 period.
     The provision for loan losses for the three months ended March 31, 2001
 was $450,000 compared with $600,000 for the corresponding 2000 period.  The
 allowance for loan losses was $22.6 million at March 31, 2001 compared with
 $22.1 million at December 31, 2000.  Non-performing loans at March 31, 2001
 were $14.6 million compared with $13.0 million at December 31, 2000.  Net
 charge-offs for the quarter ended March 31, 2001 were $6,000 compared to net
 recoveries of $3,000 for the quarter ended March 31, 2000.
     Non-interest income for the three months ended March 31, 2001 and 2000 was
 $1.1 million.  Non-interest income consists primarily of service charges and
 fees on deposit accounts.  Total non-interest expense increased $0.8 million,
 or 4.2%, to $19.7 million for the quarter ended March 31, 2001 compared with
 the prior year quarter.  The increase in total non-interest expense were
 primarily attributable to routine increases in salaries and employee benefits.
 Our efficiency ratio for the first quarter of 2001 was 29.07% compared with
 29.26% for the first quarter of 2000.  Our annualized ratio of non-interest
 expense to average assets for the first quarter of 2001 and 2000 was 0.83% and
 0.88%, respectively.
     Income tax expense for the three months ended March 31, 2001 was
 $17.0 million compared with $16.7 million for the corresponding 2000 period.
 Hudson City Bancorp's effective tax rate decreased to 35.7% for the quarter
 ended March 31, 2001 compared with 37.1% for the quarter ended March 31, 2000.
 The decline in the effective tax rate is primarily attributable to certain tax
 benefits associated with the formation and funding of subsidiaries of Hudson
 City Savings during 2000.
     Hudson City Savings Bank maintains its headquarters in Paramus, New
 Jersey.  It is the largest savings bank based in New Jersey.  Hudson City
 Savings operates 79 full-service branches throughout fourteen New Jersey
 counties.  The Federal Deposit Insurance Corporation insures Hudson City
 Savings' deposits.
 
     This release may contain certain "forward looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995, and may be
 identified by the use of such words as "believe," "expect," "anticipate,"
 "should," "planned," "estimated," and "potential."  Examples of forward
 looking statements include, but are not limited to, estimates with respect to
 the financial condition, results of operations and business of Hudson City
 Bancorp that are subject to various factors which could cause actual results
 to differ materially from these estimates.  These factors include, but are not
 limited to, general economic and market conditions, legislative and regulatory
 conditions, changes in interest rates that adversely affect Hudson City
 Bancorp's interest rate spread, changes in deposit flows, loan demand or real
 estate values and other economic, governmental, competitive, regulatory and
 technological factors that may affect Hudson City Bancorp's operations.
 
                    Hudson City Bancorp, Inc. and Subsidiary
                 Consolidated Statements of Financial Condition
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                  (Unaudited)
                                                           (In thousands)
 
     Assets:
     Cash and due from banks                          $69,472        $65,411
     Federal funds sold                               174,900        121,700
     Total cash and cash equivalents                  244,372        187,111
 
     Investment securities held to maturity             1,481          1,481
 
     Investment securities available for sale         560,286        876,667
 
     Federal Home Loan Bank of New York stock          81,149         73,629
 
     Mortgage-backed securities held to maturity    3,576,419      3,262,035
 
     Loans                                          5,058,251      4,872,740
     Less:
     Deferred loan fees                                10,137          9,555
     Allowance for loan losses                         22,588         22,144
     Net loans                                      5,025,526      4,841,041
 
     Foreclosed real estate, net                          702            438
     Accrued interest receivable                       58,388         62,260
     Banking premises and equipment                    30,647         31,309
     Other assets                                      38,879         44,402
 
     Total Assets                                  $9,617,849     $9,380,373
 
     Liabilities and Stockholders' Equity:
     Deposits:
     Interest-bearing                              $6,397,472     $6,271,944
     Noninterest-bearing                              352,273        332,177
     Total deposits                                 6,749,745      6,604,121
 
     Borrowed funds                                 1,450,000      1,250,000
 
     Accrued expenses and other liabilities            77,333         61,683
     Total liabilities                              8,277,078      7,915,804
 
     Common stock, $0.01 par value,
      800,000,000 shares authorized;
      115,638,300 shares issued, 104,638,200
      shares outstanding at March 31, 2001 and
      111,999,300 shares outstanding at
      December 31, 2000                                 1,156          1,156
 
     Additional paid-in capital                       526,573        526,718
 
     Retained earnings                              1,104,233      1,084,157
 
     Treasury stock, at cost;
      11,000,100 shares at March 31, 2001 and
      3,639,000 shares at December 31, 2000         (212,965)       (65,011)
 
     Unallocated common stock held by the
      employee stock ownership plan                  (54,906)       (55,396)
 
     Unearned common stock held by the
      recognition and retention plan                 (23,029)       (23,958)
 
     Accumulated other comprehensive loss,
      net of tax                                        (291)        (3,097)
       Total stockholders' equity                   1,340,771      1,464,569
 
     Total Liabilities and Stockholders' Equity    $9,617,849     $9,380,373
 
                    Hudson City Bancorp, Inc. and Subsidiary
                       Consolidated Statements of Income
                                  (Unaudited)
                                                  For the three months ended
                                                            March 31,
                                                         2001           2000
      (In thousands, except for share data)
     Interest and Dividend Income:
     Interest and fees on first mortgage loans        $88,711        $76,813
     Interest and fees on consumer and other loans      3,007          2,266
     Interest on mortgage-backed securities            59,849         50,050
     Interest on investment securities
      held to maturity:
         Taxable                                           17             16
         Exempt from federal taxes                          6              7
     Interest on investment securities
      available for sale-taxable                       12,692         13,656
     Dividends on Federal Home Loan
      Bank of New York stock                            1,292             --
     Interest on federal funds sold                     1,727          1,249
 
         Total interest and dividend income           167,301        144,057
 
     Interest Expense:
     Interest on deposits                              79,882         74,307
     Interest on borrowed funds                        20,626          6,378
 
         Total interest expense                       100,508         80,685
 
         Net interest income                           66,793         63,372
 
     Provision for loan losses                            450            600
 
     Net interest income after
      provision for loan losses                        66,343         62,772
 
     Non-Interest Income:
     Service charges and other income                   1,052          1,100
         Total non-interest income                      1,052          1,100
 
     Non-Interest Expense:
     Salaries and employee benefits                    12,941         11,892
     Net occupancy expense                              3,463          3,209
     Federal deposit insurance assessment                 329            366
     Computer and related services                        250            220
     Other expense                                      2,739          3,177
     Total non-interest expense                        19,722         18,864
 
     Income before income tax expense                  47,673         45,008
 
     Income tax expense                                16,996         16,702
         Net income                                   $30,677        $28,306
 
     Basic earnings per share                           $0.30          $0.25
 
     Diluted earnings per share                         $0.29          $0.25
 
     Weighted average number of
      common shares outstanding:
         Basic                                    103,983,274    112,264,130
         Diluted                                  105,403,708    112,302,702
 
                    Hudson City Bancorp, Inc. and Subsidiary
                      Consolidated Average Balance Sheets
                                  (Unaudited)
 
                             For the Three Month Periods Ended March 31,
                       2001                    2000
                                          Average                    Average
                         Average           Yield/  Average            Yield/
                         Balance  Interest  Cost   Balance   Interest  Cost
                                     (Dollars in thousands)
 
     Assets:
     Interest-earnings
      assets:
     First mortgage
      loans, net(1)    $4,751,156  $88,711  7.47% $4,235,832  $76,813    7.25%
     Consumer and other
      loans               150,952   3,007    7.97    114,249     2,266   7.93
     Federal funds sold   132,458   1,727    5.29     90,091     1,249   5.58
     Mortgage-backed
      securities        3,413,288  59,849    7.01  3,157,298    50,050   6.34
     Federal Home Loan
      Bank of New York
       stock               74,130   1,292    6.97         --        --     --
     Investment
      securities          818,268  12,715    6.22    878,828    13,679   6.23
     Total interest
      -earning assets   9,340,252 167,301    7.17  8,476,298   144,057   6.80
 
     Noninterest-earnings
      assets              182,755                    145,211
     Total Assets       $9,523,007                 $8,621,509
 
     Liabilities and
      Stockholders'
       Equity:
     Interest-bearing
      liabilities:
     Savings accounts    $756,788   4,321    2.32   $799,534     5,040   2.54
     Interest-bearing
      demand accounts      93,858     373    1.61     96,689       507   2.11
     Money market
      accounts            446,995   2,636    2.39    480,731     3,201   2.68
     Time deposits      5,009,819  72,552    5.87  4,960,578    65,559   5.32
     Total interest
      -bearing deposits 6,307,460  79,882    5.14  6,337,532    74,307   4.72
     Borrowed funds     1,380,556  20,626    6.06    432,418     6,378   5.93
     Total interest
      -bearing
       liabilities      7,688,016 100,508    5.30  6,769,950    80,685   4.79
 
     Noninterest-bearing
      liabilities:
     Noninterest-bearing
      deposits            327,820                    311,636
     Other noninterest
     -bearing liabilities  80,456                     73,476
     Total noninterest
     -bearing liabilities 408,276                    385,112
 
     Total liabilities  8,096,292                  7,155,062
     Stockholders'
      equity            1,426,715                  1,466,447
     Total Liabilities
      and Stockholders'
       Equity          $9,523,007                 $8,621,509
 
     Net interest
      income/net interest
       rate spread (2)            $66,793   1.87%              $63,372  2.01%
 
     Net interest-earning
      assets/net interest
       margin (3)      $1,652,236           2.80%  $1,706,348           2.97%
 
     Ratio of interest
     -earning assets to
      interest-bearing
       liabilities                         1.21X                       1.25X
 
      (1) Amount is net of deferred loan fees and allowance for loan losses and
          includes non-performing loans.
      (2) We determined net interest spread by subtracting the annualized
          weighted average cost of average interest-bearing liabilities from
          the annualized weighted average yield on average interest-earning
          assets.
      (3) We determined net interest margin by dividing annualized net interest
          income by average interest-earning assets.
 
                    Hudson City Bancorp, Inc. and Subsidiary
                        Selected Performance Ratios (1)
                                  (Unaudited)
 
                                                        For the three months
                                                            ended March 31,
                                                         2001           2000
 
     Return on average assets                           1.29%          1.31%
     Return on average stockholders' equity              8.60           7.72
     Net interest rate spread                            1.87           2.01
     Net interest margin                                 2.80           2.97
     Non-interest expense to average assets              0.83           0.88
     Efficiency ratio (2)                               29.07          29.26
     Dividend payout ratio                              33.33          20.00
     Cash dividends declared per common share           $0.10          $0.05
 
      (1) Ratios are annualized where appropriate.
      (2) Determined by dividing total non-interest expense by the sum of net
          interest income and total non-interest income, adjusted to exclude
          net gains or losses on securities transactions.
 
                    Hudson City Bancorp, Inc. and Subsidiary
                           Selected Financial Ratios
                                  (Unaudited)
 
                                           At or for the       At or for the
                                            period ended          year ended
                                               March 31,        December 31,
                                                    2001                2000
 
     Asset Quality Ratios:
     Non-performing loans to total loans           0.29%               0.27%
     Non-performing assets to total assets          0.16                0.14
     Allowance for loan losses to
      non-performing loans                        154.97              170.67
     Allowance for loan losses to total loans       0.45                0.45
 
     Capital Ratios:
     Average stockholders' equity to
      average assets                              14.98%              16.35%
     Stockholders' equity to assets                13.94               15.61
     Book value per common share                  $13.54              $13.78
 
     Regulatory Capital Ratios:
     Bancorp:
     Leverage capital                             14.08%              16.45%
     Total risk-based capital                      44.30               49.90
 
     Bank:
     Leverage capital                             13.48%              14.16%
     Total risk-based capital                      42.46               43.06
 
 

SOURCE Hudson City Bancorp, Inc.
    PARAMUS, N.J., April 12 /PRNewswire/ --
 Hudson City Bancorp, Inc. (Nasdaq:   HCBK), the holding company for Hudson City
 Savings Bank, reported today the results of its operations for the three month
 period ended March 31, 2001.  Net income was $30.7 million for the first
 quarter of 2001, an increase of $2.4 million, or 8.5%, compared with net
 income of $28.3 million for the first quarter of 2000.  Basic and diluted
 earnings per common share were $0.30 and $0.29, respectively, for the first
 quarter of 2001 compared with basic and diluted earnings per common share of
 $0.25 for the first quarter of 2000.
     Hudson City Bancorp's annualized return on average assets and annualized
 return on average equity for the first quarter of 2001 were 1.29% and 8.60%,
 respectively, compared with 1.31% and 7.72%, respectively, for the
 corresponding quarter of 2000.
 
     Dividend Declared
     Hudson City Bancorp also reported that the Board of Directors declared a
 quarterly cash dividend of $0.11 per common share, representing an increase
 from the $0.10 per common share declared during the previous quarter.  Leonard
 S. Gudelski, Chairman and Chief Executive Officer, noted, "I am pleased that
 the Board has once again raised the cash dividend on our common stock.  This
 quarter's increase represents the fifth consecutive increase of our dividend."
 The dividend is payable on June 1, 2001 to stockholders of record at the close
 of business on May 11, 2001.
 
     Stock Repurchase Programs
     The Board of Directors announced today that it has approved a third stock
 repurchase program to repurchase up to 5,200,000 shares, or approximately 5%,
 of our common stock outstanding.  There are approximately 185,934 additional
 shares to be repurchased under the previous stock repurchase program.  Under
 the approved stock repurchase program, Hudson City Bancorp will purchase the
 shares of common stock in the open market and other transactions from
 time-to-time, depending on market conditions.  The repurchased shares are
 expected to be held as treasury stock for general corporate use.  At March 31,
 2001, Hudson City Bancorp had 104,638,200 shares outstanding and 11,000,100
 shares held as treasury stock.
 
     Annual Meeting
     Hudson City Bancorp has scheduled its 2001 Annual Meeting of Stockholders
 for May 17, 2001.  The voting record date for stockholders was March 29, 2001.
 
     Statement of Financial Condition Summary
     Total assets increased $237.5 million, or 2.5%, to $9.62 billion at March
 31, 2001 from $9.38 billion at December 31, 2000.  The increase in total
 assets reflects an increase in loans of $185.5 million through March 31, 2001.
 Hudson City Bancorp originated and purchased first mortgage loans of
 approximately $331.8 million and $242.8 million, respectively, for the three
 month periods ended March 31, 2001 and 2000.  Loan originations and purchases
 were concentrated primarily in one- to four-family mortgage loans.  The
 decrease in investment securities available for sale was primarily due to
 calls of $320.9 million for the three month period ended March 31, 2001, due
 to the lower interest rate environment in 2001.  The funds received from the
 calls on investment securities were reinvested primarily in mortgage-backed
 securities.  Federal funds sold increased $53.2 million for the period ended
 March 31, 2001.
     Total liabilities increased $361.3 million, or 4.6%, to $8.28 billion at
 March 31, 2001 from $7.92 billion at December 31, 2000.  The increase in total
 liabilities reflects an increase in borrowed funds of $200.0 million and an
 increase in total deposits of $145.6 million for the three month period ended
 March 31, 2001.  Within total deposits, time deposits increased $119.4
 million, noninterest-bearing demand deposits increased $20.1 million, and
 other non-maturity deposits increased $6.1 million for the period ended March
 31, 2001.  These increases in liabilities were primarily used to fund asset
 growth.
     Overall, total stockholders' equity decreased $123.8 million, or 8.5%, to
 $1.34 billion at March 31, 2001 from $1.46 billion at December 31, 2000.
 Increasing stockholders' equity during the first quarter of 2001 was net
 income of $30.7 million and an unrealized gain of $2.8 million in accumulated
 other comprehensive loss, due to increases in the market values of our
 investment securities available for sale.  Decreasing stockholders' equity
 during the first quarter of 2001 was $10.6 million of cash dividends declared
 and paid to common stockholders and purchases of treasury stock of $149.2
 million.
 
     Statement of Income Summary
     Total interest income for the three months ended March 31, 2001 increased
 $23.2 million, or 16.1%, to $167.3 million compared with $144.1 million for
 the three months ended March 31, 2000.  This increase was due to an increase
 in the average balance of total interest-earning assets of $864.0 million, or
 10.2%, to $9.34 billion and an increase in the annualized average yield on
 total interest-earning assets of 37 basis points to 7.17% for the three month
 period ended March 31, 2001 compared with the prior year period.  The increase
 in the average balance of interest-earning assets reflects an increase in the
 average balance of first mortgage loans of $515.3 million and an increase in
 the average balance of mortgage-backed securities of $256.0 million.  The
 increase in the annualized average yield of interest-earning assets for the
 three month period ended March 31, 2001 primarily reflects an increase in the
 annualized average yield of our first mortgage loans of 22 basis points to
 7.47% and an increase in the annualized average yield of our mortgage-backed
 securities of 67 basis points to 7.01%.
     Total interest expense increased $19.8 million, or 24.5%, to
 $100.5 million for the first quarter of 2001 compared with $80.7 million for
 the corresponding quarter of 2000.  This increase was due to an increase in
 the average balance of interest-bearing liabilities of $918.1 million to
 $7.69 billion and an increase in the annualized average cost of total
 interest-bearing liabilities of 51 basis points to 5.30% for the three month
 period ended March 31, 2001 compared with the prior year period.  The increase
 in the average balance of interest-bearing liabilities reflects an increase in
 the average balance of borrowed funds of $948.1 million for the quarter ended
 March 31, 2001 compared with the prior year quarter.  The increase in the
 annualized average cost of interest-bearing liabilities for the first quarter
 of 2001 reflects an increase in the annualized average cost of time deposits
 of 55 basis points to 5.87% and an increase in the annualized average cost of
 borrowed funds of 13 basis points to 6.06%.  Also, the increase in the
 annualized average cost of interest-bearing liabilities reflects the continued
 shift to a higher percentage of borrowed funds in our interest-bearing
 liability mix.
     Net interest income for the three months ended March 31, 2001 increased
 $3.4 million, or 5.4%, to $66.8 million compared with $63.4 million for the
 corresponding period of 2000.  Net interest rate spread was 1.87% for the
 first quarter of 2001 compared with 2.01% for the corresponding period in
 2000.  For the first quarter of 2001, net interest margin, determined by
 dividing net interest income by average interest-earning assets, was
 2.80% compared with 2.97% for the corresponding 2000 period.
     The provision for loan losses for the three months ended March 31, 2001
 was $450,000 compared with $600,000 for the corresponding 2000 period.  The
 allowance for loan losses was $22.6 million at March 31, 2001 compared with
 $22.1 million at December 31, 2000.  Non-performing loans at March 31, 2001
 were $14.6 million compared with $13.0 million at December 31, 2000.  Net
 charge-offs for the quarter ended March 31, 2001 were $6,000 compared to net
 recoveries of $3,000 for the quarter ended March 31, 2000.
     Non-interest income for the three months ended March 31, 2001 and 2000 was
 $1.1 million.  Non-interest income consists primarily of service charges and
 fees on deposit accounts.  Total non-interest expense increased $0.8 million,
 or 4.2%, to $19.7 million for the quarter ended March 31, 2001 compared with
 the prior year quarter.  The increase in total non-interest expense were
 primarily attributable to routine increases in salaries and employee benefits.
 Our efficiency ratio for the first quarter of 2001 was 29.07% compared with
 29.26% for the first quarter of 2000.  Our annualized ratio of non-interest
 expense to average assets for the first quarter of 2001 and 2000 was 0.83% and
 0.88%, respectively.
     Income tax expense for the three months ended March 31, 2001 was
 $17.0 million compared with $16.7 million for the corresponding 2000 period.
 Hudson City Bancorp's effective tax rate decreased to 35.7% for the quarter
 ended March 31, 2001 compared with 37.1% for the quarter ended March 31, 2000.
 The decline in the effective tax rate is primarily attributable to certain tax
 benefits associated with the formation and funding of subsidiaries of Hudson
 City Savings during 2000.
     Hudson City Savings Bank maintains its headquarters in Paramus, New
 Jersey.  It is the largest savings bank based in New Jersey.  Hudson City
 Savings operates 79 full-service branches throughout fourteen New Jersey
 counties.  The Federal Deposit Insurance Corporation insures Hudson City
 Savings' deposits.
 
     This release may contain certain "forward looking statements" within the
 meaning of the Private Securities Litigation Reform Act of 1995, and may be
 identified by the use of such words as "believe," "expect," "anticipate,"
 "should," "planned," "estimated," and "potential."  Examples of forward
 looking statements include, but are not limited to, estimates with respect to
 the financial condition, results of operations and business of Hudson City
 Bancorp that are subject to various factors which could cause actual results
 to differ materially from these estimates.  These factors include, but are not
 limited to, general economic and market conditions, legislative and regulatory
 conditions, changes in interest rates that adversely affect Hudson City
 Bancorp's interest rate spread, changes in deposit flows, loan demand or real
 estate values and other economic, governmental, competitive, regulatory and
 technological factors that may affect Hudson City Bancorp's operations.
 
                    Hudson City Bancorp, Inc. and Subsidiary
                 Consolidated Statements of Financial Condition
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                  (Unaudited)
                                                           (In thousands)
 
     Assets:
     Cash and due from banks                          $69,472        $65,411
     Federal funds sold                               174,900        121,700
     Total cash and cash equivalents                  244,372        187,111
 
     Investment securities held to maturity             1,481          1,481
 
     Investment securities available for sale         560,286        876,667
 
     Federal Home Loan Bank of New York stock          81,149         73,629
 
     Mortgage-backed securities held to maturity    3,576,419      3,262,035
 
     Loans                                          5,058,251      4,872,740
     Less:
     Deferred loan fees                                10,137          9,555
     Allowance for loan losses                         22,588         22,144
     Net loans                                      5,025,526      4,841,041
 
     Foreclosed real estate, net                          702            438
     Accrued interest receivable                       58,388         62,260
     Banking premises and equipment                    30,647         31,309
     Other assets                                      38,879         44,402
 
     Total Assets                                  $9,617,849     $9,380,373
 
     Liabilities and Stockholders' Equity:
     Deposits:
     Interest-bearing                              $6,397,472     $6,271,944
     Noninterest-bearing                              352,273        332,177
     Total deposits                                 6,749,745      6,604,121
 
     Borrowed funds                                 1,450,000      1,250,000
 
     Accrued expenses and other liabilities            77,333         61,683
     Total liabilities                              8,277,078      7,915,804
 
     Common stock, $0.01 par value,
      800,000,000 shares authorized;
      115,638,300 shares issued, 104,638,200
      shares outstanding at March 31, 2001 and
      111,999,300 shares outstanding at
      December 31, 2000                                 1,156          1,156
 
     Additional paid-in capital                       526,573        526,718
 
     Retained earnings                              1,104,233      1,084,157
 
     Treasury stock, at cost;
      11,000,100 shares at March 31, 2001 and
      3,639,000 shares at December 31, 2000         (212,965)       (65,011)
 
     Unallocated common stock held by the
      employee stock ownership plan                  (54,906)       (55,396)
 
     Unearned common stock held by the
      recognition and retention plan                 (23,029)       (23,958)
 
     Accumulated other comprehensive loss,
      net of tax                                        (291)        (3,097)
       Total stockholders' equity                   1,340,771      1,464,569
 
     Total Liabilities and Stockholders' Equity    $9,617,849     $9,380,373
 
                    Hudson City Bancorp, Inc. and Subsidiary
                       Consolidated Statements of Income
                                  (Unaudited)
                                                  For the three months ended
                                                            March 31,
                                                         2001           2000
      (In thousands, except for share data)
     Interest and Dividend Income:
     Interest and fees on first mortgage loans        $88,711        $76,813
     Interest and fees on consumer and other loans      3,007          2,266
     Interest on mortgage-backed securities            59,849         50,050
     Interest on investment securities
      held to maturity:
         Taxable                                           17             16
         Exempt from federal taxes                          6              7
     Interest on investment securities
      available for sale-taxable                       12,692         13,656
     Dividends on Federal Home Loan
      Bank of New York stock                            1,292             --
     Interest on federal funds sold                     1,727          1,249
 
         Total interest and dividend income           167,301        144,057
 
     Interest Expense:
     Interest on deposits                              79,882         74,307
     Interest on borrowed funds                        20,626          6,378
 
         Total interest expense                       100,508         80,685
 
         Net interest income                           66,793         63,372
 
     Provision for loan losses                            450            600
 
     Net interest income after
      provision for loan losses                        66,343         62,772
 
     Non-Interest Income:
     Service charges and other income                   1,052          1,100
         Total non-interest income                      1,052          1,100
 
     Non-Interest Expense:
     Salaries and employee benefits                    12,941         11,892
     Net occupancy expense                              3,463          3,209
     Federal deposit insurance assessment                 329            366
     Computer and related services                        250            220
     Other expense                                      2,739          3,177
     Total non-interest expense                        19,722         18,864
 
     Income before income tax expense                  47,673         45,008
 
     Income tax expense                                16,996         16,702
         Net income                                   $30,677        $28,306
 
     Basic earnings per share                           $0.30          $0.25
 
     Diluted earnings per share                         $0.29          $0.25
 
     Weighted average number of
      common shares outstanding:
         Basic                                    103,983,274    112,264,130
         Diluted                                  105,403,708    112,302,702
 
                    Hudson City Bancorp, Inc. and Subsidiary
                      Consolidated Average Balance Sheets
                                  (Unaudited)
 
                             For the Three Month Periods Ended March 31,
                       2001                    2000
                                          Average                    Average
                         Average           Yield/  Average            Yield/
                         Balance  Interest  Cost   Balance   Interest  Cost
                                     (Dollars in thousands)
 
     Assets:
     Interest-earnings
      assets:
     First mortgage
      loans, net(1)    $4,751,156  $88,711  7.47% $4,235,832  $76,813    7.25%
     Consumer and other
      loans               150,952   3,007    7.97    114,249     2,266   7.93
     Federal funds sold   132,458   1,727    5.29     90,091     1,249   5.58
     Mortgage-backed
      securities        3,413,288  59,849    7.01  3,157,298    50,050   6.34
     Federal Home Loan
      Bank of New York
       stock               74,130   1,292    6.97         --        --     --
     Investment
      securities          818,268  12,715    6.22    878,828    13,679   6.23
     Total interest
      -earning assets   9,340,252 167,301    7.17  8,476,298   144,057   6.80
 
     Noninterest-earnings
      assets              182,755                    145,211
     Total Assets       $9,523,007                 $8,621,509
 
     Liabilities and
      Stockholders'
       Equity:
     Interest-bearing
      liabilities:
     Savings accounts    $756,788   4,321    2.32   $799,534     5,040   2.54
     Interest-bearing
      demand accounts      93,858     373    1.61     96,689       507   2.11
     Money market
      accounts            446,995   2,636    2.39    480,731     3,201   2.68
     Time deposits      5,009,819  72,552    5.87  4,960,578    65,559   5.32
     Total interest
      -bearing deposits 6,307,460  79,882    5.14  6,337,532    74,307   4.72
     Borrowed funds     1,380,556  20,626    6.06    432,418     6,378   5.93
     Total interest
      -bearing
       liabilities      7,688,016 100,508    5.30  6,769,950    80,685   4.79
 
     Noninterest-bearing
      liabilities:
     Noninterest-bearing
      deposits            327,820                    311,636
     Other noninterest
     -bearing liabilities  80,456                     73,476
     Total noninterest
     -bearing liabilities 408,276                    385,112
 
     Total liabilities  8,096,292                  7,155,062
     Stockholders'
      equity            1,426,715                  1,466,447
     Total Liabilities
      and Stockholders'
       Equity          $9,523,007                 $8,621,509
 
     Net interest
      income/net interest
       rate spread (2)            $66,793   1.87%              $63,372  2.01%
 
     Net interest-earning
      assets/net interest
       margin (3)      $1,652,236           2.80%  $1,706,348           2.97%
 
     Ratio of interest
     -earning assets to
      interest-bearing
       liabilities                         1.21X                       1.25X
 
      (1) Amount is net of deferred loan fees and allowance for loan losses and
          includes non-performing loans.
      (2) We determined net interest spread by subtracting the annualized
          weighted average cost of average interest-bearing liabilities from
          the annualized weighted average yield on average interest-earning
          assets.
      (3) We determined net interest margin by dividing annualized net interest
          income by average interest-earning assets.
 
                    Hudson City Bancorp, Inc. and Subsidiary
                        Selected Performance Ratios (1)
                                  (Unaudited)
 
                                                        For the three months
                                                            ended March 31,
                                                         2001           2000
 
     Return on average assets                           1.29%          1.31%
     Return on average stockholders' equity              8.60           7.72
     Net interest rate spread                            1.87           2.01
     Net interest margin                                 2.80           2.97
     Non-interest expense to average assets              0.83           0.88
     Efficiency ratio (2)                               29.07          29.26
     Dividend payout ratio                              33.33          20.00
     Cash dividends declared per common share           $0.10          $0.05
 
      (1) Ratios are annualized where appropriate.
      (2) Determined by dividing total non-interest expense by the sum of net
          interest income and total non-interest income, adjusted to exclude
          net gains or losses on securities transactions.
 
                    Hudson City Bancorp, Inc. and Subsidiary
                           Selected Financial Ratios
                                  (Unaudited)
 
                                           At or for the       At or for the
                                            period ended          year ended
                                               March 31,        December 31,
                                                    2001                2000
 
     Asset Quality Ratios:
     Non-performing loans to total loans           0.29%               0.27%
     Non-performing assets to total assets          0.16                0.14
     Allowance for loan losses to
      non-performing loans                        154.97              170.67
     Allowance for loan losses to total loans       0.45                0.45
 
     Capital Ratios:
     Average stockholders' equity to
      average assets                              14.98%              16.35%
     Stockholders' equity to assets                13.94               15.61
     Book value per common share                  $13.54              $13.78
 
     Regulatory Capital Ratios:
     Bancorp:
     Leverage capital                             14.08%              16.45%
     Total risk-based capital                      44.30               49.90
 
     Bank:
     Leverage capital                             13.48%              14.16%
     Total risk-based capital                      42.46               43.06
 
 SOURCE  Hudson City Bancorp, Inc.