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Despite Hard Economic Times, Some Bank Profits Are Up

Vanessa Tyler Reporting

October 16, 2008

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Banks profiting during the economy's current tough times seems unusual, but for one local bank it's actually happening.

Wednesday, Hudson City Bancorp, who runs and operates Hudson City Savings Bank, announced that their profits for the third quarter have increased 64 percent.

In addition to the increases they're experiencing, the company also has been writing more individual mortgages now than it did one year ago.

Hudson City Bancorp, based in Paramus, NJ, earned a record of $121.9 million this quarter, which is more than they earned last year, and also more than analysts had expected.

According to Hudson City Chief Executive, Ronald Hermance Jr., the bank has achieved it's success this quarter due to its "conservative model."

Being the humble bank on the block, Hudson City concentrates on individual mortgage applications and does not hold unrated mortgage-backed securities. Also to avoid trouble, the bank holds no stock in mortgage giants like Freddie Mac and Fannie Mae.

In a statement, Chief Executive Hermance supported the bank's conservative model, saying, "We believe we can continue to take market share and grow organically at a strong pace while not compromising asset quality."