HispanicBusiness

Hudson City Bancorp, Inc. (the "Company"), the holding company for Hudson City Savings Bank (the "Bank"), reported today net income of $47.9 million for the quarter ended December 31, 2012 as compared to a net loss of $360.5 million for the quarter ended December 31, 2011. Diluted earnings per share amounted to $0.10 for the fourth quarter of 2012 as compared to a net loss per share of $0.73 for the fourth quarter of 2011. The net loss in the fourth quarter of 2011 was due to the extinguishment of $4.3 billion of borrowings which resulted in an after-tax charge of $416.8 million. For the year ended December 31, 2012, the Company reported net income of $249.1 million as compared to a net loss of $736.0 million for the year ended December 31, 2011. Diluted earnings per share was $0.50 for the year ended December 31, 2012 as compared to a net loss per share of $1.49 for the year ended December 31, 2011. The net loss for 2011 was driven by the results of a restructuring of the Company's balance sheet in the first quarter of 2011 (the "Restructuring Transaction") as well as the extinguishment of $4.3 billion of borrowings in the fourth quarter of 2011.

The Company also reported today that the Board of Directors declared a quarterly cash dividend of $0.08 per share payable on February 28, 2013 to shareholders of record on February 11, 2013.

Financial highlights for the fourth quarter of 2012 are as follows: -- Our interest rate spread and net interest margin were 1.75% and 1.97%, respectively, for the fourth quarter of 2012 as compared to 1.51% and 1.73%, respectively, for the fourth quarter of 2011. For the linked third quarter of 2012, our interest rate spread and net interest margin were 1.80% and 2.02%, respectively. The interest rate spread and net interest margin for the fourth quarter of 2011 were adversely affected by elevated levels of liquidity which were used to extinguish $4.3 billion of borrowings in the fourth quarter of 2011. -- The provision for loan losses was $25.0 million for both the fourth quarter of 2012 and 2011. Net charge-offs decreased to $14.2 million for the fourth quarter of 2012 as compared to $20.0 million for the fourth quarter of 2011. The increase in our provision for loan losses from $20.0 million for the linked third quarter of 2012 is primarily due to the loss exposure related to the effects of Hurricane Sandy.

-- Total assets decreased 10.5% to $40.60 billion at December 31, 2012 from $45.36 billion at December 31, 2011, primarily due to repayments of mortgage-related assets.

-- Total deposits decreased $2.03 billion, or 8.0%, to $23.48 billion at December 31, 2012 from $25.51 billion at December 31, 2011 due to planned reductions in deposit rates to curtail deposit growth during this time of limited investment opportunities.

-- Borrowings decreased $2.90 billion, or 19.2%, to $12.18 billion at December 31, 2012 from $15.08 billion at December 31, 2011 due to the maturities of short-term borrowings.

-- The Bank's Tier 1 leverage capital ratio increased to 10.09% at December 31, 2012 as compared to 8.83% at December 31, 2011.

-- As previously announced, on August 27, 2012, the Company entered into a definitive agreement with M&T Bank Corporation ("M&T) and Wilmington Trust Corporation ("Merger Sub"), a wholly owned subsidiary of M&T, providing for the merger of the Company with and into Merger Sub (the "Merger"), with Merger Sub as the surviving entity. As part of the Merger, the Bank will merge with and into Manufacturers and Traders Trust Company. In connection with the Merger, M&T has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the "SEC") that includes a joint proxy statement of the Company and M&T and a prospectus of M&T, as well as other relevant documents concerning the Merger. On January 9, 2013, M&T filed Amendment No. 1 to the Form S-4. The Registration Statement is subject to completion and has not yet become effective. The Merger is subject to shareholder and regulatory approvals and the satisfaction of other customary conditions. The Company anticipates that the closing of the