 The
promise of tomorrow 2012 ANNUAL
SHAREHOLDERS MEETING
Exhibit 99.1 |
 Private Securities Litigation Reform Act Safe Harbor Statement
2
This presentation may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, that are based on
certain assumptions and describe future plans, strategies and expectations
of Hudson City Bancorp, Inc. These forward-looking statements
include,
but
are
not
limited
to,
statements
about
(i)
Hudson
City
Bancorp,
Inc.’s
“Hudson City”
or “HCBK”) plans, estimates, objectives, expectations and intentions and
other statements contained in this presentation that are not historical
facts; and (ii) other statements identified by words such as
“may”, “believe”, “expect”, “anticipate”, “should”, “plan”, “estimate”,
“predict”, “continue”, “potential”, or the negative
of those terms or words of similar meaning. Factors that could cause actual
results to differ materially from those expressed in the forward-
looking statements are discussed in Hudson City's 2011 Annual Report on Form
10-K filed with the Securities and Exchange Commission and is available
at the SEC's Internet site (http://www.sec.gov)
or
through
our
Internet
site
(http://www.hcbk.com).
Any
or
all
of
the
forward-
looking statements in this presentation and in any other public statements made by
Hudson City may turn out to be wrong. They can be affected by inaccurate
assumptions Hudson City might make or by known or unknown risks and
uncertainties. Consequently, no forward-looking statement can be
guaranteed, Hudson City does not intend to update any of the forward-looking
statements after the date of this presentation or to conform these statements to
actual events. |
 Who
We Are... 3 |
 Attractive Franchise
135 branch offices in
NY, NJ and CT
Branches located in 10
of the Top 50 Counties
in the U.S. in terms of
Median Household
Income
700,000 deposit
accounts
4 |
 Last
Year at This Time… 5 |
 Significant External Factors We Discussed 2011
The most significant recession since the Great Depression
The U.S. Government control of Fannie Mae and Freddie Mac
(Q4 2008)
QE1 and QE2 –
$2.35 trillion of asset purchases by the
Federal Reserve
Historically low market interest rates
6 |
 First
Quarter 2011 Balance Sheet Restructuring Total of a series of transactions
executed in March 2011: Extinguishment of Structured Quarterly
Putable Borrowings
$12.50 billion
Funded by:
Sale of Securities
$8.66 billion
Short-term Fixed Maturity Borrowings
$5.00 billion
Approximate After-tax Charge
$649.30 million
Summary of Transaction
7 |
 What
Has Happened Since Our Last
Meeting…
8 |
 Mortgage Rates
9 |
 Impact on Hudson City
10
Principal Payments on Mortgages and Securities |
 Impact on Hudson City
We chose not to compete with the rates offered by Fannie
Mae and Freddie Mac
Refinancing activity caused high levels of cash inflows
Reinvestment of these cash flows was difficult given the low
yields available
We had to consider alternative uses of excess cash including
the early extinguishment of high-cost debt
11
The Bottom Line |
 December 2011 Debt Extinguishment
Extinguished $4.3 billion of structured borrowings with a
weighted average cost of 4.21%
Reduced total assets by $5.49 billion in fourth quarter
Resulted in an after-tax charge of $440.7 million
No significant impact on regulatory capital ratios
Improved net interest margin for 2012
Used existing cash position to fund the extinguishment
Positioned balance sheet for “new normal”
12 |
 2011
– A Focus on the Balance Sheet
Debt extinguishments reduced higher-cost borrowings
Capital Management –
Preservation and growth of regulatory
capital ratios
Liquidity management
Improved net interest margin for 2012
Balance sheet repositioned for new business initiatives and
the “new normal”
13 |
 First Quarter
2012
14 |
 2012
First Quarter Results 15
1Q 2012
1Q 2011
Net income (loss)
$72,987
$(555,664)
Net interest margin
2.15%
1.72%
Diluted EPS
$0.15
$(1.13)
Dividends
$0.08
$0.08
Tier 1 leverage capital ratio
9.17%
8.12%
Total assets
$44,138,584
$52,429,066
Total loans
$28,534,080
$30,182,386
Total deposits
$25,121,541
$25,466,079
Total borrowings
$14,175,000
$22,025,000 |
 Expectations for 2012
Economic conditions remain challenging
Interest rates remain near historic lows:
–
FOMC policy continues to keep rates low to support economic
recovery
–
European debt crisis
The U.S. Government continues to control most of the
mortgage market through Fannie Mae, Freddie Mac and
Ginnie Mae
Continued elevated levels on mortgage asset repayments
16 |
 The
Way Forward… 17 |
 18
One of the top ten
mortgage lenders in NY
metro area
In the top ten based on
deposit market share in
our footprint
Ranked among the top
ten banks in the Mid-
Atlantic Region according
to the J.D. Power 2012
U.S. Retail Banking
Satisfaction Study
Attractive Franchise to Take Us Forward |
 The
Way Forward Build regulatory capital
Exploring new lending distribution channels –
94% of our
assets are currently related to the residential first mortgage
market
Considering opportunities to develop a more diversified
balance sheet
Developing revenue growth strategies
We believe there are good opportunities for a more diversified
business model in our attractive market
19 |
 The promise of tomorrow
THANK YOU FOR ATTENDING OUR
2012 ANNUAL SHAREHOLDERS MEETING |