NEW YORK - Hudscon City Bancorp headquartered in Paramus, New Jersey shattered estimates today but for all the wrong reasons. Today, they reported that net income for the fourth quarter of 2010 amounted to $121.2 million as compared to $136.6 million for the fourth quarter of 2009.
Ronald E. Hermance, Jr., Chairman and Chief Executive Officer commented, “We are very proud of reporting another record year of earnings...However, our fourth quarter earnings are more reflective of the trend we expect in 2011."
And this trend has sent HCBK shares dizzying downward. Nonperforming loans continued to grow from the previous quarter now at $871 million from $837 million. But provisions dropped from $50 million to $45 million as charge-offs declined. The allowance for loan losses is a paltry 26% of nonperfomring loans. However, HCBK strong capital position allows for this but it will put a drag on earnings going forward.
To see the full HCBK report click here.
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