Hudson City Bancorp, Inc., based in

Paramus Paramus ( Waggoner, Walter H ''The New York Times'', February 16, 1966. Accessed October 16, 2018. "Paramus – pronounced puh-RAHM-us, with the accent on the second syllable – may have taken its name from 'perremus' or 'perymus,' Indian for ...

, in the

U.S. state In the United States, a state is a constituent political entity, of which there are 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory where it shares its sover ...

New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...

, was a bank-holding company for Hudson City Savings Bank, its only subsidiary, then the largest savings bank in New Jersey and one of the oldest banks in the United States, with US$50 billion in assets. It is now a fully publicly held entity and a member

S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of D ...

stock market Index. In 2005, its US$3.93 billion secondary offering of common stock was the largest in United States banking history. At the time, it was also the seventh largest domestic public offering in United States history THACHER PROFFITT REPRESENTS HUDSON CITY BANCORP IN 7TH LARGEST DOMESTIC PUBLIC OFFERING IN HISTORY
June 8, 2005, PRNewswire, Insurance Newscast, InsuranceBroadcasting.com The bank avoided the excesses of the housing boom and was labeled "best bank of 2007" by

Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also re ...

M&T Bank M&T Bank Corporation (Manufacturers and Traders Trust Company) is an American bank holding company headquartered in Buffalo, New York. It operates 1680 branches in New York, New Jersey, Connecticut, Pennsylvania, Maine, Maryland, Massachusetts ...

agreed to acquire Hudson City on August 27, 2012. The company was located at West 80 Century Road, in Paramus, New Jersey.Institution History for HUDSON CITY BANCORP, INC. (2367556)
National Information Center

Hudson City Savings Bank

On March 27, 1868, the Hudson City Savings Bank received a charter from the

New Jersey Legislature The New Jersey Legislature is the legislative branch of the government of the U.S. state of New Jersey. In its current form, as defined by the New Jersey Constitution of 1947, the Legislature consists of two houses: the General Assembly and the ...

to open in what was then the small

Hudson City, New Jersey Hudson was a city that existed in Hudson County, New Jersey, United States, from 1855 to 1870, when it became part of Jersey City. History Hudson Town, a predecessor of Hudson City, was formed by an Act of the New Jersey Legislature on April 12, ...

. Garrett D. Van Reipen, the city's first mayor, became the first president of the small bank. By the early 1870s, the city of Hudson was annexed by

Jersey City, New Jersey Jersey City is the second-most populous city in the U.S. state of New Jersey, after Newark. In January 1918, Robert J. Rendall became the savings bank's president, and by his death in 1950 he had become one of the longest serving presidents in the company's history. In the 1920s, Hudson City Savings Bank opened its second branch office, and moved from the old headquarters on Newark Avenue, to 587 Summit Avenue in Jersey City. The company survived the aftermath of the

stock market crash of 1929 The Wall Street Crash of 1929, also known as the Great Crash, was a major American stock market crash that occurred in the autumn of 1929. It started in September and ended late in October, when share prices on the New York Stock Exchange colla ...

when many other banks closed. By the end of the

Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...

of the 1930s, it had accumulated US$11 million in assets and held US$800,000 in reserves. By the end of the 1940s, the savings bank had opened at least three Jersey City branches, with over US$26 million in assets. In August 1950, President Robert J. Rendall died. During the 1950s, New Jersey's growth rate was double the national average, boosting the savings bank's growth as well: by 1959, Hudson City Savings Bank had accumulated over US$50 million in assets. In 1968, Kenneth L. Birchby became president and

CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...

of the bank. By the late 1960s, New Jersey's banking laws made it legal for banks to operate across county lines. In 1969, the bank opened its fifth branch, and its first branch across the county line at Waldwick, in

Bergen County, New Jersey Bergen County is the most populous county in the U.S. state of New Jersey. During the long

secular bear market A market trend is a perceived tendency of financial markets to move in a particular direction over time. Analysts classify these trends as ''secular'' for long time-frames, ''primary'' for medium time-frames, and ''secondary'' for short time-fram ...

and

economic malaise Economic stagnation is a prolonged period of slow economic growth (traditionally measured in terms of the GDP growth), usually accompanied by high unemployment. Under some definitions, "slow" means significantly slower than potential growth as e ...

of the 1970s the bank grew to 37 branches in 12 New Jersey counties. In 1978, the headquarters moved to neighboring

Bergen County, New Jersey Bergen County is the most populous county in the U.S. state of New Jersey. In 1981, Leonard S. Gudelski became president. The bank survived the troubles surrounding double-digit inflation and interest rates, and also survived the following

early 1980s recession The early 1980s recession was a severe economic recession that affected much of the world between approximately the start of 1980 and 1983. It is widely considered to have been the most severe recession since World War II. A key event leading to ...

and the later 1980s Savings and Loan crisis when many other banks and

savings and loan Wealth is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This includes the core meaning as held in the originating Old English word , which is from an I ...

s failed. In 1988, Ronald E. Hermance, Jr. was hired at Hudson City Savings as senior executive vice president and

chief operating officer A chief operating officer or chief operations officer, also called a COO, is one of the highest-ranking executive positions in an organization, composing part of the "C-suite". The COO is usually the second-in-command at the firm, especially if t ...

. He had previously been

chief financial officer The chief financial officer (CFO) is an officer of a company or organization that is assigned the primary responsibility for managing the company's finances, including financial planning, management of financial risks, record-keeping, and financ ...

of Southold Savings Bank on

Long Island, New York Long Island is a densely populated island in the southeastern region of the U.S. state of New York, part of the New York metropolitan area. With over 8 million people, Long Island is the most populous island in the United States and the 18th ...

.Officers & Directors Detail Hudson City Bancorp Inc HCBK.O (NASDAQ), Hermance, Ronald E., Brief Biography
, Reuters.com By the end of 1989, Hudson City Savings Bank had 69 branches and total assets of US$3.2 billion. In 1992, following the 1990-1991 recession, the bank became the largest savings bank in New Jersey. In 1996, Leonard S. Gudelski was elected chairman, and also retained his position as president through that year. In January 1997, Ronald E. Hermance, Jr. was promoted to replace Gudelski as the 11th president of the bank. Gudelski remained as chairman. As of January 1, 2011, there were 136 branch offices, nine in Fairfield County, Connecticut, 29 in New York State, and 98 in New Jersey spanning Bergen, Passaic, Morris, Warren, Essex, Hudson, Union, Somerset, Middlesex, Mercer, Monmouth, Ocean, Burlington, Camden, Atlantic, and Gloucester counties.

Hudson City Bancorp

In February 1999, the bank initiated a plan of reorganization as a wholly owned subsidiary of Hudson City Bancorp, Inc. The company issued stock for the first time, raising over US$500 million of new capital. Assets exceeded $8 billion by then. On July 13, 1999, Hudson City Bancorp, Inc., was formally recognized by the

United States Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...

as the bank holding company for the savings bank. Ronald E. Hermance, Jr., retained his position as president and also was promoted from COO to CEO of the new holding company. On January 1, 2004, the company was changed from a bank holding company to a Domestic Entity Other as categorized by the

Federal Reserve System The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...

, defined generically as a domestic institution that engages in the business of banking in the United States. The move was in preparation for its huge stock offering, the company's second-step mutual-to-stock conversion. On January 1, 2005, Ronald Hermance, Jr., replaced Gudelski as chairman, as well as retaining his existing positions as president and CEO. In 2004, he had also begun serving on the

board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit organiz ...

of the

Federal Home Loan Bank The Federal Home Loan Banks (FHLBanks, or FHLBank System) are 11 U.S. government-sponsored banks that provide liquidity to the members of financial institutions to support housing finance and community investment. Overview The FHLBank System was ...

of New York. On June 8, 2005, the company made the largest public stock offering in the history of the United States banking industry, represented by

Thacher Proffitt Thacher Proffitt & Wood LLP was an American law firm headquartered in New York City. At its peak, the firm was made up of approximately 365 attorneys with offices in New York City; Washington, D.C.; Mexico City; White Plains, New York; and Summit ...

. The conversion from the mutual holding company structure made Hudson City Bancorp a fully publicly held entity. In the public offering, 393 million shares were sold at $10.00 per share. The company also split its existing stock 3.206-for-one. The new Hudson City Bancorp shares traded on the

NASDAQ The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...

under the ticker symbol HCBK. By 2007, Hudson City Savings Bank had become the largest New Jersey based savings bank, and the third largest

savings and loan association A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; simi ...

in the United States, with over US$35 billion in assets, over 100 branches in New Jersey, New York and Connecticut, and with over 1,300 employees. On February 14, 2007, the company was added to the S&P 500 Index by

Standard & Poor's S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is con ...

, where it replaced American Power Conversion Corporation

Financial and legal problems

During the

subprime mortgage crisis The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the Financial crisis of 2007–2008, 2007–2008 global financial crisis. It was triggered by a large decline ...

, Hudson City was cited as an example of good management. They continued to require a good credit score and down payments of 10 to 20 percent, and avoided "exotic mortgages" allowing no income verification and/or no down-payment. ''

'' called the bank the "best managed bank of 2007." Hudson City was the largest American bank to refuse federal bailout money, which unfortunately led to its downfall. While initially better off, the other large banks offloaded their bad loans to the government, leaving Hudson City with more debt than their competitors. While not plagued by the credit quality of its loans, by 2012 the bank was weakened as the continued lower mortgage rates encouraged a wave of refinancing to the lower rates. Hudson City was successful in avoiding the mortgage and banking meltdown made by prudent lending. However, "actions taken by the government to rescue the banking system proved to be Hudson City's undoing." It borrowed at 4% in 2005 and successfully avoided the rise in interest rates in 2006 but suffered from an unprecedented reduction in interest rates implemented by the Fed to bail out the banking system. Its portfolio of jumbo loans was previously ineligible to refinance into a

conforming loan In the United States, a conforming loan is a mortgage loan that both meets the underwriting guidelines of Fannie Mae and Freddie Mac (the ''Enterprises'' or GSE) and that does not exceed the conforming loan limit. The most well-known guideline is ...

, giving the bank a stable long-term asset base. After the housing crisis, the rules changed raising the conforming limit, which enabled the high credit quality jumbo loans to refinance to the lower rate available to GSE-purchased mortgages. The lengthy foreclosure process left Hudson City with a large number of non-performing loans. A loss of high-quality borrowers, an inability to issue new mortgages at reasonable rates, and a portfolio of non-performing loans encouraged the bank to accept a buy-out. On September 12, 2014, after the death of Ronald Hermance, Hudson City Bancorp appointed Denis J. Salamone as chief executive officer in accordance with the company's succession plan. In September 2015 the corporation agreed to a settlement of $5,500,000 for mortgage lending practices which discriminated against largely Black and Latin-American neighborhoods.

M&T acquisition

On August 27, 2012, Hudson City Bancorp agreed to a buy-out by

Buffalo, New York Buffalo is the second-largest city in the U.S. state of New York (behind only New York City) and the seat of Erie County. It is at the eastern end of Lake Erie, at the head of the Niagara River, and is across the Canadian border from South ...

-based

for $3.7 billion. M&T was to gain $25 billion in deposits and $28 billion in loans, along with 135 branch locations, 97 of which are located in New Jersey. Thereafter, Hudson City Bancorp became a better buyer of all specified pools. The buy-out was delayed for more than three years due to concerns by the Federal Reserve Board about M&T's anti-money laundering compliance. The Federal Reserve finally approved the acquisition in September 2015, and on November 1, 2015, Hudson City Bancorp became an M&T subsidiary. At 1,129 days, it is by far the longest delayed bank merger in history. Since November 1, Hudson City has operated as a subsidiary of M&T. M&T plans to completely integrate and rebrand branch locations by February 16.

References

External links

{{Portal, Banks
Hudson City Savings Bank
Paramus, New Jersey Banks established in 1868 Banks disestablished in 2015 Companies based in Bergen County, New Jersey Banks based in New Jersey 2015 mergers and acquisitions Defunct banks of the United States