##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended: September 30, 2006
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission File Number: 0-26001
 Hudson City Bancorp, Inc.
  Delaware
    
    22-3640393(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)West 80 Century RoadParamus, New Jersey
    
    07652(Address of Principal Executive Offices)
    
    (Zip Code)
 (201) 967-1900
  þ o
  þ o o
  o þ




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##### 



Page NumberPART I  FINANCIAL INFORMATIONItem 1.  Financial StatementsConsolidated
Statements of
Financial Condition
- September 30,
2006 (Unaudited)
and December 31,
2005
    
    
    4Consolidated
Statements of
Income (Unaudited)
- For the three and
nine months ended
September 30, 2006
and 2005
    
    
    5Consolidated
Statements of Cash
Flows (Unaudited)  For the nine months
ended September 30,
2006 and 2005
    
    
    6Notes to Unaudited
Consolidated
Financial
Statements
    
    
    7Item 2.  Managements Discussion and
Analysis of Financial Condition and
Results of Operations
    
    
    18Item 3.  Quantitative and Qualitative
Disclosures About Market Risk
    
    
    38Item 4.  Controls and
Procedures
    
    
    42PART II  OTHER INFORMATIONItem 1.  Legal
Proceedings
    
    
    42Item 1A.  Risk
Factors
    
    
    42Item 2.  Unregistered Sales of Equity
Securities and Use of Proceeds
    
    
    43Item 3.  Defaults Upon Senior
Securities
    
    
    43Item 4.  Submission of Matters to a
Vote of Security Holders
    
    
    44Item 5.  Other
Information
    
    
    44Item 6.  Exhibits
    
    
    44SIGNATURES
    
    
    45EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATION
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Forward-Looking Statements
  Page 3




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PART I  FINANCIAL INFORMATION
 
 Item 1.  Financial Statements
 Hudson City Bancorp, Inc. and Subsidiary
 
 Consolidated Statements of Financial Condition
 September 30,
    
    
    December 31,2006
    
    
    2005(Unaudited)(In thousands, except share amounts)Assets:Cash and due from banks
    
    $
    129,855
    
    
    $
    97,672Federal funds sold
    
    
    146,275
    
    
    
    4,587Total cash and cash equivalents
    
    
    276,130
    
    
    
    102,259Investment securities held to maturity, market value of $1,507,201 at
September 30, 2006 and $1,508,055 at December 31, 2005
    
    
    1,533,971
    
    
    
    1,534,216Investment securities available for sale, at market value
    
    
    4,127,179
    
    
    
    3,962,511Federal Home Loan Bank of New York stock
    
    
    412,381
    
    
    
    226,962Mortgage-backed securities held to maturity, market value of $5,744,434 at
September 30, 2006 and $4,288,772 at December 31, 2005
    
    
    5,873,952
    
    
    
    4,389,864Mortgage-backed securities available for sale, at market value
    
    
    2,575,038
    
    
    
    2,520,633Loans
    
    
    18,285,946
    
    
    
    15,062,449Deferred loan costs
    
    
    17,748
    
    
    
    1,653Allowance for loan losses
    
    
    (27,391
    )
    
    
    (27,393
    )Net loans
    
    
    18,276,303
    
    
    
    15,036,709Foreclosed real estate, net
    
    
    1,736
    
    
    
    1,040Accrued interest receivable
    
    
    189,839
    
    
    
    140,723Banking premises and equipment, net
    
    
    73,587
    
    
    
    49,132Goodwill
    
    
    146,069
    
    
    
    Other intangible assets
    
    
    14,475
    
    
    
    Other assets
    
    
    137,344
    
    
    
    111,304Total Assets
    
    $
    33,638,004
    
    
    $
    28,075,353Liabilities and Stockholders Equity:Deposits:Interest-bearing
    
    $
    12,320,119
    
    
    $
    10,941,258Noninterest-bearing
    
    
    486,958
    
    
    
    442,042Total deposits
    
    
    12,807,077
    
    
    
    11,383,300Repurchase agreements
    
    
    8,273,000
    
    
    
    7,900,000Federal Home Loan Bank of New York advances
    
    
    7,375,000
    
    
    
    3,450,000Total borrowed funds
    
    
    15,648,000
    
    
    
    11,350,000Accrued expenses and other liabilities
    
    
    180,685
    
    
    
    140,577Total liabilities
    
    
    28,635,762
    
    
    
    22,873,877Common stock, $0 01 par value, 3,200,000,000 shares
authorized; 741,466,555 shares issued; 565,714,563 shares outstanding
at September 30, 2006; 588,905,543 shares outstanding
at December 31, 2005
    
    
    7,415
    
    
    
    7,415Additional paid-in capital
    
    
    4,547,509
    
    
    
    4,533,329Retained earnings
    
    
    1,849,846
    
    
    
    1,759,492Treasury stock, at cost; 175,751,992 shares at
September 30, 2006 and 152,561,012 shares at
December 31, 2005
    
    
    (1,120,319
    )
    
    
    (798,232
    )Unallocated common stock held by the employee stock ownership plan
    
    
    (229,759
    )
    
    
    (234,264
    )Unearned common stock held by the recognition and retention plan
    
    
    
    
    
    
    (2,815
    )Accumulated other comprehensive loss, net of tax
    
    
    (52,450
    )
    
    
    (63,449
    )Total stockholders equity
    
    
    5,002,242
    
    
    
    5,201,476Total Liabilities and Stockholders Equity
    
    $
    33,638,004
    
    
    $
    28,075,353
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Hudson City Bancorp, Inc. and Subsidiary
 
 Consolidated Statements of Income
 (Unaudited)
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2006
    
    
    2005
    
    
    2006
    
    
    2005(In thousands, except per share and share data)Interest and Dividend Income:Interest and fees on first mortgage loans
    
    $
    246,230
    
    
    $
    177,562
    
    
    $
    679,049
    
    
    $
    500,218Interest and fees on consumer and other loans
    
    
    5,425
    
    
    
    2,795
    
    
    
    12,822
    
    
    
    7,561Interest on mortgage-backed securities held to maturity
    
    
    68,249
    
    
    
    45,865
    
    
    
    182,034
    
    
    
    133,210Interest on mortgage-backed securities available for sale
    
    
    31,372
    
    
    
    26,359
    
    
    
    89,788
    
    
    
    63,956Interest on investment securities held to maturity
    
    
    18,673
    
    
    
    18,634
    
    
    
    55,936
    
    
    
    53,950Interest and dividends on investment securities available for
sale
    
    
    45,233
    
    
    
    39,720
    
    
    
    130,631
    
    
    
    77,863Dividends on Federal Home Loan Bank of New York stock
    
    
    4,640
    
    
    
    2,116
    
    
    
    10,357
    
    
    
    7,031Interest on federal funds sold
    
    
    2,223
    
    
    
    736
    
    
    
    5,256
    
    
    
    2,821Total interest and dividend income
    
    
    422,045
    
    
    
    313,787
    
    
    
    1,165,873
    
    
    
    846,610Interest Expense:Interest on deposits
    
    
    115,894
    
    
    
    76,446
    
    
    
    303,666
    
    
    
    210,264Interest on borrowed funds
    
    
    153,023
    
    
    
    85,165
    
    
    
    397,811
    
    
    
    226,597Total interest expense
    
    
    268,917
    
    
    
    161,611
    
    
    
    701,477
    
    
    
    436,861Net interest income
    
    
    153,128
    
    
    
    152,176
    
    
    
    464,396
    
    
    
    409,749Provision for Loan Losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    65Net interest income after
provision for loan losses
    
    
    153,128
    
    
    
    152,176
    
    
    
    464,396
    
    
    
    409,684Non-Interest Income:Service charges and other income
    
    
    1,669
    
    
    
    1,413
    
    
    
    4,384
    
    
    
    3,791Gains on securities transactions, net
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    2,740Total non-interest income
    
    
    1,669
    
    
    
    1,413
    
    
    
    4,388
    
    
    
    6,531Non-Interest Expense:Compensation and employee benefits
    
    
    26,633
    
    
    
    21,534
    
    
    
    78,376
    
    
    
    61,739Net occupancy expense
    
    
    6,519
    
    
    
    5,681
    
    
    
    17,629
    
    
    
    14,729Federal deposit insurance assessment
    
    
    431
    
    
    
    413
    
    
    
    1,257
    
    
    
    1,235Computer and related services
    
    
    779
    
    
    
    607
    
    
    
    2,078
    
    
    
    1,835Other expense
    
    
    6,226
    
    
    
    4,688
    
    
    
    18,048
    
    
    
    14,406Total non-interest expense
    
    
    40,588
    
    
    
    32,923
    
    
    
    117,388
    
    
    
    93,944Income before income tax expense
    
    
    114,209
    
    
    
    120,666
    
    
    
    351,396
    
    
    
    322,271Income Tax Expense
    
    
    43,238
    
    
    
    45,635
    
    
    
    132,029
    
    
    
    121,020Net income
    
    $
    70,971
    
    
    $
    75,031
    
    
    $
    219,367
    
    
    $
    201,251Basic Earnings Per Share
    
    $
    0.13
    
    
    $
    0.13
    
    
    $
    0.41
    
    
    $
    0.35Diluted Earnings Per Share
    
    $
    0.13
    
    
    $
    0.13
    
    
    $
    0.40
    
    
    $
    0.34Weighted Average Number of Common Shares Outstanding:Basic
    
    
    531,129,380
    
    
    
    566,667,689
    
    
    
    539,843,240
    
    
    
    571,809,470Diluted
    
    
    540,969,501
    
    
    
    580,174,828
    
    
    
    550,497,527
    
    
    
    585,122,824
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Hudson City Bancorp, Inc. and Subsidiary
 
 Consolidated Statements of Cash Flows
 (Unaudited
 For the Nine MonthsEnded September 30,2006
    
    
    2005(In thousands)Cash Flows from Operating Activities:Net income
    
    $
    219,367
    
    
    $
    201,251Adjustments to reconcile net income to net cash provided
by operating activities:Depreciation, accretion and amortization expense
    
    
    14,774
    
    
    
    6,891Provision for loan losses
    
    
    
    
    
    
    65Gains on securities transactions, net
    
    
    (4
    )
    
    
    (2,740
    )Share-based compensation, including committed ESOP shares
    
    
    14,365
    
    
    
    9,673Increase in deferred tax asset
    
    
    (15,448
    )
    
    
    (204
    )Increase in accrued interest receivable
    
    
    (49,116
    )
    
    
    (37,170
    )Decrease (increase) in other assets
    
    
    6,476
    
    
    
    (2,610
    )Increase in accrued expenses and other liabilities
    
    
    41,582
    
    
    
    16,918Tax benefit from stock plans
    
    
    
    
    
    
    8,798Net Cash Provided by Operating Activities
    
    
    231,996
    
    
    
    200,872Cash Flows from Investing Activities:Originations of loans
    
    
    (1,818,189
    )
    
    
    (1,538,120
    )Purchases of loans
    
    
    (1,914,033
    )
    
    
    (2,624,806
    )Payments on loans
    
    
    1,267,806
    
    
    
    1,696,466Principal collection of mortgage-backed securities held to maturity
    
    
    549,796
    
    
    
    737,604Purchases of mortgage-backed securities held to maturity
    
    
    (2,037,697
    )
    
    
    (1,152,803
    )Principal collection of mortgage-backed securities available for sale
    
    
    545,152
    
    
    
    342,959Proceeds from sales of mortgage-backed securities available for sale
    
    
    186,169
    
    
    
    230,632Purchases of mortgage-backed securities available for sale
    
    
    (593,161
    )
    
    
    (1,532,145
    )Proceeds from maturities and calls of investment securities held to maturity
    
    
    251
    
    
    
    100,043Purchases of investment securities held to maturity
    
    
    
    
    
    
    (300,000
    )Proceeds from maturities and calls of investment securities available for sale
    
    
    250,008
    
    
    
    1,000,026Proceeds from sales of investment securities available for sale
    
    
    112,157
    
    
    
    9,980Purchases of investment securities available for sale
    
    
    (399,999
    )
    
    
    (3,383,680
    )Purchases of Federal Home Loan Bank of New York stock
    
    
    (187,111
    )
    
    
    (51,300
    )Redemption of Federal Home Loan Bank of New York stock
    
    
    4,500
    
    
    
    16,300Cash paid in purchase acquistion, net of cash acquired
    
    
    (197,653
    )
    
    
    Purchases of premises and equipment, net
    
    
    (19,898
    )
    
    
    (15,626
    )Net proceeds from sale of foreclosed real estate
    
    
    1,086
    
    
    
    1,536Net Cash Used in Investment Activities
    
    
    (4,250,816
    )
    
    
    (6,462,934
    )Cash Flows from Financing Activities:Net increase (decrease) in deposits
    
    
    361,656
    
    
    
    (95,906
    )Proceeds from borrowed funds
    
    
    6,025,000
    
    
    
    2,800,000Principal payments on borrowed funds
    
    
    (1,750,000
    )
    
    
    (200,000
    )Cash proceeds from the common stock offering  net
    
    
    
    
    
    
    3,806,627Consolidation of Hudson City, MHC
    
    
    
    
    
    
    146,374Dividends paid
    
    
    (121,870
    )
    
    
    (63,063
    )Purchases of stock by the employee stock ownership plan
    
    
    
    
    
    
    (189,348
    )Purchases of stock by the recognition and retention plan
    
    
    
    
    
    
    (1,290
    )Purchases of treasury stock
    
    
    (335,161
    )
    
    
    (2,659
    )Exercise of stock options
    
    
    5,931
    
    
    
    2,467Tax benefit from stock plans
    
    
    7,135
    
    
    
    Net Cash Provided by Financing Activities
    
    
    4,192,691
    
    
    
    6,203,202Net Increase (decrease) in Cash and Cash Equivalents
    
    
    173,871
    
    
    
    (58,860
    )Cash and Cash Equivalents at Beginning of Period
    
    
    102,259
    
    
    
    168,183Cash and Cash Equivalents at End of Period
    
    $
    276,130
    
    
    $
    109,323Supplemental Disclosures:Interest paid
    
    $
    677,034
    
    
    $
    426,156Income taxes paid
    
    $
    135,467
    
    
    $
    114,990
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##### Table of Contents



1.  Basis of Presentation
    Statements of Cash Flows.
 2.  Acquisition
  Page 7




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3.  Comprehensive Income
  For the Three MonthsEnded September 30,2006
    
    
    2005(In thousands)Net income
    
    $
    70,971
    
    
    $
    75,031Other comprehensive income (loss):Unrealized holding gain (loss) on securities
available for sale, net of tax
of $30,584
for 2006 and ($22,606) for 2005
    
    
    44,285
    
    
    
    (32,738
    )Total comprehensive income
    
    $
    115,256
    
    
    $
    42,293
 For the Nine MonthsEnded September 30,2006
    
    
    2005(In thousands)Net income
    
    $
    219,367
    
    
    $
    201,251Other comprehensive income (loss):Unrealized holding gain (loss) on securities
available for sale, net of tax
of $7,612
for 2006 and ($21,729) for 2005
    
    
    11,022
    
    
    
    (31,463
    )Reclassification adjustment for gains in
net income, net of tax of ($2)
for 2006
and ($1,119) for 2005
    
    
    (2
    )
    
    
    (1,621
    )Minimum pension liability adjustment
    
    
    (21
    )
    
    
    Total comprehensive income
    
    $
    230,366
    
    
    $
    168,167
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##### Table of Contents



4.  Earnings Per Share
  For the Three Months Ended September 30,2006
    
    
    2005Per
    
    
    
    
    
    
    
    
    
    
    PerShare
    
    
    
    
    
    
    
    
    
    
    ShareIncome
    
    
    Shares
    
    
    Amount
    
    
    Income
    
    
    Shares
    
    
    Amount(In thousands, except per share data)Net income
    
    $
    70,971
    
    
    
    
    
    
    
    
    
    
    $
    75,031Basic earnings per share:Income available to
common stockholders
    
    $
    70,971
    
    
    
    531,129
    
    
    $
    0.13
    
    
    $
    75,031
    
    
    
    566,668
    
    
    $
    0.13Effect of dilutive common
stock equivalents
    
    
    
    
    
    
    9,841
    
    
    
    
    
    
    
    
    
    
    
    13,507Diluted earnings per share:Income available to
common stockholders
    
    $
    70,971
    
    
    
    540,970
    
    
    $
    0.13
    
    
    $
    75,031
    
    
    
    580,175
    
    
    $
    0.13
 For the Nine Months Ended September 30,2006
    
    
    2005Per
    
    
    
    
    
    
    
    
    
    
    PerShare
    
    
    
    
    
    
    
    
    
    
    ShareIncome
    
    
    Shares
    
    
    Amount
    
    
    Income
    
    
    Shares
    
    
    Amount(In thousands, except per share data)Net income
    
    $
    219,367
    
    
    
    
    
    
    
    
    
    
    $
    201,251Basic earnings per share:Income available to
common stockholders
    
    $
    219,367
    
    
    
    539,843
    
    
    $
    0.41
    
    
    $
    201,251
    
    
    
    571,809
    
    
    $
    0.35Effect of dilutive common
stock equivalents
    
    
    
    
    
    
    10,655
    
    
    
    
    
    
    
    
    
    
    
    13,314Diluted earnings per share:Income available to
common stockholders
    
    $
    219,367
    
    
    
    550,498
    
    
    $
    0.40
    
    
    $
    201,251
    
    
    
    585,123
    
    
    $
    0.34
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##### Table of Contents



5.  Fair Value and Unrealized Losses of Securities
  Less Than 12 Months
    
    
    12 Months or Longer
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    Losses(In thousands)September 30, 2006Held to maturity:Investment securities
    
    $
    
    
    
    $
    
    
    
    $
    1,506,273
    
    
    $
    26,783
    
    
    $
    1,506,273
    
    
    $
    26,783Mortgage-backed securities
    
    
    958,012
    
    
    
    3,447
    
    
    
    3,160,096
    
    
    
    114,081
    
    
    
    4,118,108
    
    
    
    117,528Total held to maturity
    
    
    958,012
    
    
    
    3,447
    
    
    
    4,666,369
    
    
    
    140,864
    
    
    
    5,624,381
    
    
    
    144,311Available for sale:Investment securities
    
    
    703,411
    
    
    
    1,333
    
    
    
    3,016,234
    
    
    
    51,383
    
    
    
    3,719,645
    
    
    
    52,716Mortgage-backed securities
    
    
    304,935
    
    
    
    1,580
    
    
    
    1,944,818
    
    
    
    34,393
    
    
    
    2,249,753
    
    
    
    35,973Total available for sale
    
    
    1,008,346
    
    
    
    2,913
    
    
    
    4,961,052
    
    
    
    85,776
    
    
    
    5,969,398
    
    
    
    88,689Total
    
    $
    1,966,358
    
    
    $
    6,360
    
    
    $
    9,627,421
    
    
    $
    226,640
    
    
    $
    11,593,779
    
    
    $
    233,000December 31, 2005Held to maturity:Investment securities
    
    $
    1,213,548
    
    
    $
    19,501
    
    
    $
    293,317
    
    
    $
    6,684
    
    
    $
    1,506,865
    
    
    $
    26,185Mortgage-backed securities
    
    
    2,402,735
    
    
    
    43,756
    
    
    
    83,578
    
    
    
    2,233
    
    
    
    2,486,313
    
    
    
    45,989Total held to maturity
    
    
    3,616,283
    
    
    
    63,257
    
    
    
    376,895
    
    
    
    8,917
    
    
    
    3,993,178
    
    
    
    72,174Available for sale:Investment securities
    
    
    2,961,446
    
    
    
    24,332
    
    
    
    1,000,732
    
    
    
    35,806
    
    
    
    3,962,178
    
    
    
    60,138Mortgage-backed securities
    
    
    3,637,136
    
    
    
    103,637
    
    
    
    80,869
    
    
    
    2,000
    
    
    
    3,718,005
    
    
    
    105,637Total available for sale
    
    
    6,598,582
    
    
    
    127,969
    
    
    
    1,081,601
    
    
    
    37,806
    
    
    
    7,680,183
    
    
    
    165,775Total
    
    $
    10,214,865
    
    
    $
    191,226
    
    
    $
    1,458,496
    
    
    $
    46,723
    
    
    $
    11,673,361
    
    
    $
    237,949
  6.  Stockholders Equity
  Page 10




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7.  Net Periodic Benefit Plans Expenses
   For the Three Months Ended September 30,Retirement Plans
    
    
    Other Benefits2006
    
    
    2005
    
    
    2006
    
    
    2005(In thousands)Service cost
    
    $
    802
    
    
    $
    762
    
    
    $
    269
    
    
    $
    480Interest cost
    
    
    1,269
    
    
    
    1,196
    
    
    
    510
    
    
    
    623Expected return on assets
    
    
    (1,718
    )
    
    
    (1,694
    )
    
    
    
    
    
    
    Amortization of:Net loss
    
    
    130
    
    
    
    109
    
    
    
    167
    
    
    
    155Unrecognized prior service cost
    
    
    35
    
    
    
    6
    
    
    
    (391
    )
    
    
    (245
    )Net periodic benefit cost
    
    $
    518
    
    
    $
    379
    
    
    $
    555
    
    
    $
    1,013
 For the Nine Months Ended September 30,Retirement Plans
    
    
    Other Benefits2006
    
    
    2005
    
    
    2006
    
    
    2005(In thousands)Service cost
    
    $
    2,406
    
    
    $
    2,286
    
    
    $
    807
    
    
    $
    1,441Interest cost
    
    
    3,808
    
    
    
    3,588
    
    
    
    1,530
    
    
    
    1,869Expected return on assets
    
    
    (5,154
    )
    
    
    (5,081
    )
    
    
    
    
    
    
    Amortization of:Net loss
    
    
    389
    
    
    
    326
    
    
    
    500
    
    
    
    466Unrecognized prior service cost
    
    
    105
    
    
    
    19
    
    
    
    (1,174
    )
    
    
    (734
    )Net periodic benefit cost
    
    $
    1,554
    
    
    $
    1,138
    
    
    $
    1,663
    
    
    $
    3,042
   Page 11




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8.  Share-Based Compensation
   For the Three
    
    
    For the NineMonths Ended
    
    
    Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2005(In thousands, except per share data)Net income, as reported
    
    $
    75,031
    
    
    $
    201,251Add: expense recognized for the recognition
and retention plans, net of related tax
effect of $236 and $1,114, respectively
    
    
    393
    
    
    
    1,856Less: total stock option and recognition and
retention plans expense, determined
under the fair value method, net of
related tax effect of ($458) and ($1,784),
respectively
    
    
    (764
    )
    
    
    (2,974
    )Pro forma net income
    
    $
    74,660
    
    
    $
    200,133Basic earnings per share: As reported
    
    $
    0.13
    
    
    $
    0.35Pro forma
    
    
    0.13
    
    
    
    0.35Diluted earnings per share: As reported
    
    $
    0.13
    
    
    $
    0.34Pro forma
    
    
    0.13
    
    
    
    0.34
 Page 12




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2005Expected dividend yield
    
    
    2.23
    %Expected volatility
    
    
    21.57
    %Risk-free interest rate
    
    
    3.64
    %Expected option life
    
    5 years
 Recognition and Retention Plans.
   Nine Month Periods Ended September 30,2006
    
    
    2005Weighted
    
    
    
    
    
    
    WeightedNumber of
    
    
    Average
    
    
    Number of
    
    
    AverageShares
    
    
    Fair Value
    
    
    Shares
    
    
    Fair ValueOutstanding at beginning of period
    
    
    951,761
    
    
    $
    9.70
    
    
    
    2,973,759
    
    
    $
    4.66Granted
    
    
    
    
    
    
    
    
    
    
    150,682
    
    
    
    11.17Vested
    
    
    (410,910
    )
    
    
    7.22
    
    
    
    (2,172,680
    )
    
    
    2.91Outstanding at end of period
    
    
    540,851
    
    
    
    11.58
    
    
    
    951,761
    
    
    
    9.70
  Page 13




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Stock Option Plans.
   2006Expected dividend yield
    
    
    2.35
    %Expected volatility
    
    
    19.96
    %Risk-free interest rate
    
    
    4.98
    %Expected option life
    
    5.4 years
  Nine Month Periods Ended September 30,2006
    
    2005Number of
    
    Weighted
    
    Number of
    
    WeightedStock
    
    Average
    
    Stock
    
    AverageOptions
    
    Exercise Price
    
    Options
    
    Exercise PriceOutstanding at beginning of period
    
    
    21,659,869
    
    
    $
    4.21
    
    
    
    22,425,161
    
    
    $
    3.95Granted
    
    
    7,960,000
    
    
    
    12.76
    
    
    
    496,930
    
    
    
    11.17Exercised
    
    
    (2,241,263
    )
    
    
    2.65
    
    
    
    (1,081,090
    )
    
    
    2.28Forfeited
    
    
    (8,336
    )
    
    
    4.21
    
    
    
    (3,847
    )
    
    
    2.16Outstanding at end of period
    
    
    27,370,270
    
    
    
    6.82
    
    
    
    21,837,154
    
    
    
    4.20
  Page 14




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Options Outstanding
    
    Options ExercisableWeightedAverage
    
    Weighted
    
    
    
    
    
    WeightedNumber
    
    
    
    Remaining
    
    Average
    
    Number
    
    AverageOf Options
    
    
    
    Contractual
    
    Exercise
    
    Of Options
    
    ExerciseOutstanding
    
    
    
    Life
    
    Price
    
    Exercisable
    
    Price12,719,775
    
    
    
    
    3.25 years
    
    $
    2.16
    
    
    
    12,719,775
    
    
    $
    2.16238,283
    
    
    
    
    4.25 years
    
    
    3.09
    
    
    
    238,283
    
    
    
    3.09411,801
    
    
    
    
    4.25 years
    
    
    3.40
    
    
    
    411,801
    
    
    
    3.40820,736
    
    
    
    
    4.25 years
    
    
    3.59
    
    
    
    820,736
    
    
    
    3.59286,897
    
    
    
    
    5.25 years
    
    
    4.20
    
    
    
    197,131
    
    
    
    4.20689,440
    
    
    
    
    5.25 years
    
    
    5.53
    
    
    
    689,440
    
    
    
    5.53254,283
    
    
    
    
    6.25 years
    
    
    5.96
    
    
    
    140,147
    
    
    
    5.96206,480
    
    
    
    
    6.25 years
    
    
    6.35
    
    
    
    206,480
    
    
    
    6.35448,840
    
    
    
    
    7.25 years
    
    
    10.33
    
    
    
    179,536
    
    
    
    10.33485,389
    
    
    
    
    8.25 years
    
    
    11.17
    
    
    
    95,543
    
    
    
    11.17371,890
    
    
    
    
    7.25 years
    
    
    11.91
    
    
    
    148,745
    
    
    
    11.912,476,456
    
    
    
    
    7.25 years
    
    
    12.22
    
    
    
    591,344
    
    
    
    12.227,960,000
    
    
    
    
    9.75 years
    
    
    12.76
    
    
    
    
    
    
    
    27,370,270
    
    
    
    
    
    
    
    
    
    6.82
    
    
    
    16,438,961
    
    
    
    3.12
  9.  Subsequent Event
  10.  Recent Accounting Pronouncements
  Page 15




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,
 . a b c
  Page 16




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Page 17




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Item 2.  Managements Discussion and Analysis of Financial Condition and Results of
Operations
 Executive Summary
     Page 18




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Page 19




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Comparison of Financial Condition at September 30, 2006 and December 31, 2005
   Page 20




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Page 21




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Analysis of Net Interest Income
  Average Balance Sheet.
 Page 22




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##### Table of Contents



For the Three Months Ended September 30,2006
    
    
    2005Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    
    
    
    
    Yield/
    
    
    Average
    
    
    
    
    
    
    Yield/Balance
    
    
    Interest
    
    
    Cost
    
    
    Balance
    
    
    Interest
    
    
    Cost(Dollars in thousands)Assets:Interest-earning assets:First mortgage loans, net (1)
    
    $
    17,355,122
    
    
    $
    246,230
    
    
    
    5.68
    %
    
    $
    13,087,551
    
    
    $
    177,562
    
    
    
    5.43
    %Consumer and other loans
    
    
    341,875
    
    
    
    5,425
    
    
    
    6.35
    
    
    
    191,038
    
    
    
    2,795
    
    
    
    5.85Federal funds sold
    
    
    166,404
    
    
    
    2,223
    
    
    
    5.30
    
    
    
    85,983
    
    
    
    736
    
    
    
    3.40Mortgage-backed securities at amortized cost
    
    
    8,257,035
    
    
    
    99,621
    
    
    
    4.83
    
    
    
    6,640,580
    
    
    
    72,224
    
    
    
    4.35Federal Home Loan Bank of New York stock
    
    
    388,951
    
    
    
    4,640
    
    
    
    4.77
    
    
    
    178,657
    
    
    
    2,116
    
    
    
    4.74Investment securities at amortized cost
    
    
    5,675,493
    
    
    
    63,906
    
    
    
    4.50
    
    
    
    5,676,595
    
    
    
    58,354
    
    
    
    4.11Total interest-earning assets
    
    
    32,184,880
    
    
    
    422,045
    
    
    
    5.25
    
    
    
    25,860,404
    
    
    
    313,787
    
    
    
    4.85Noninterest-earning assets
    
    
    458,055
    
    
    
    
    
    
    
    
    
    
    
    346,613Total Assets
    
    $
    32,642,935
    
    
    
    
    
    
    
    
    
    
    $
    26,207,017Liabilities and Stockholders Equity:Interest-bearing liabilities:Savings accounts
    
    $
    809,278
    
    
    
    1,989
    
    
    
    0.98
    
    
    $
    859,240
    
    
    
    2,141
    
    
    
    0.99Interest-bearing transaction accounts
    
    
    2,468,022
    
    
    
    20,651
    
    
    
    3.32
    
    
    
    4,133,327
    
    
    
    31,258
    
    
    
    3.00Money market accounts
    
    
    805,105
    
    
    
    6,592
    
    
    
    3.25
    
    
    
    386,599
    
    
    
    1,167
    
    
    
    1.20Time deposits
    
    
    7,742,845
    
    
    
    86,662
    
    
    
    4.44
    
    
    
    5,497,737
    
    
    
    41,880
    
    
    
    3.02Total interest-bearing deposits
    
    
    11,825,250
    
    
    
    115,894
    
    
    
    3.89
    
    
    
    10,876,903
    
    
    
    76,446
    
    
    
    2.79Repurchase agreements
    
    
    8,250,500
    
    
    
    79,856
    
    
    
    3.84
    
    
    
    6,606,625
    
    
    
    58,563
    
    
    
    3.52Federal Home Loan Bank of New York advances
    
    
    6,901,240
    
    
    
    73,167
    
    
    
    4.21
    
    
    
    2,721,391
    
    
    
    26,602
    
    
    
    3.88Total borrowed funds
    
    
    15,151,740
    
    
    
    153,023
    
    
    
    4.01
    
    
    
    9,328,016
    
    
    
    85,165
    
    
    
    3.62Total interest-bearing liabilities
    
    
    26,976,990
    
    
    
    268,917
    
    
    
    3.95
    
    
    
    20,204,919
    
    
    
    161,611
    
    
    
    3.17Noninterest-bearing liabilities:Noninterest-bearing deposits
    
    
    466,906
    
    
    
    
    
    
    
    
    
    
    
    450,142Other noninterest-bearing liabilities
    
    
    207,744
    
    
    
    
    
    
    
    
    
    
    
    153,184Total noninterest-bearing liabilities
    
    
    674,650
    
    
    
    
    
    
    
    
    
    
    
    603,326Total liabilities
    
    
    27,651,640
    
    
    
    
    
    
    
    
    
    
    
    20,808,245Stockholders equity
    
    
    4,991,295
    
    
    
    
    
    
    
    
    
    
    
    5,398,772Total Liabilities and Stockholders Equity
    
    $
    32,642,935
    
    
    
    
    
    
    
    
    
    
    $
    26,207,017Net interest income/net interest rate spread (2)
    
    
    
    
    
    $
    153,128
    
    
    
    1.30
    %
    
    
    
    
    
    $
    152,176
    
    
    
    1.68
    %Net interest-earning assets/net interest margin (3)
    
    $
    5,207,890
    
    
    
    
    
    
    
    1.93
    %
    
    $
    5,655,485
    
    
    
    
    
    
    
    2.37
    %Ratio of interest-earning assets to
interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    1.19
    x
    
    
    
    
    
    
    
    
    
    
    1.28
    x
 
 (1)
    
    Amount is net of deferred loan fees and allowance for loan losses and includes non-performing
loans.(2)
    
    Determined by subtracting the annualized weighted average cost of total interest-bearing
liabilities from the annualized weighted average yield on total interest-earning assets.(3)
    
    Determined by dividing annualized net interest income by total average interest-earning assets. Page 23




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For the Nine Months Ended September 30,2006
    
    
    2005Average
    
    
    
    
    
    
    
    
    
    
    AverageAverage
    
    
    
    
    
    
    Yield/
    
    
    Average
    
    
    
    
    
    
    Yield/Balance
    
    
    Interest
    
    
    Cost (4)
    
    
    Balance
    
    
    Interest
    
    
    Cost(Dollars in thousands)Assets:Interest-earning assets:First mortgage loans, net (1)
    
    $
    16,220,800
    
    
    $
    679,049
    
    
    
    5.58
    %
    
    $
    12,244,226
    
    
    $
    500,218
    
    
    
    5.45
    %Consumer and other loans
    
    
    282,499
    
    
    
    12,822
    
    
    
    6.05
    
    
    
    173,556
    
    
    
    7,561
    
    
    
    5.81Federal funds sold
    
    
    145,306
    
    
    
    5,256
    
    
    
    4.84
    
    
    
    131,938
    
    
    
    2,821
    
    
    
    2.86Mortgage-backed securities at amortized cost
    
    
    7,730,646
    
    
    
    271,822
    
    
    
    4.69
    
    
    
    6,010,245
    
    
    
    197,166
    
    
    
    4.37Federal Home Loan Bank of New York stock
    
    
    319,715
    
    
    
    10,357
    
    
    
    4.32
    
    
    
    161,380
    
    
    
    7,031
    
    
    
    5.81Investment securities at amortized cost
    
    
    5,624,061
    
    
    
    186,567
    
    
    
    4.42
    
    
    
    4,153,466
    
    
    
    131,813
    
    
    
    4.23Total interest-earning assets
    
    
    30,323,027
    
    
    
    1,165,873
    
    
    
    5.13
    
    
    
    22,874,811
    
    
    
    846,610
    
    
    
    4.93Noninterest-earning assets
    
    
    358,978
    
    
    
    
    
    
    
    
    
    
    
    437,058Total Assets
    
    $
    30,682,005
    
    
    
    
    
    
    
    
    
    
    $
    23,311,869Liabilities and Stockholders Equity:Interest-bearing liabilities:Savings accounts
    
    $
    791,382
    
    
    
    5,826
    
    
    
    0.98
    
    
    $
    1,033,838
    
    
    
    7,655
    
    
    
    0.99Interest-bearing transaction accounts
    
    
    2,923,558
    
    
    
    73,095
    
    
    
    3.34
    
    
    
    4,233,540
    
    
    
    89,216
    
    
    
    2.82Money market accounts
    
    
    624,568
    
    
    
    13,043
    
    
    
    2.79
    
    
    
    504,996
    
    
    
    4,082
    
    
    
    1.08Time deposits
    
    
    6,964,262
    
    
    
    211,702
    
    
    
    4.06
    
    
    
    5,402,361
    
    
    
    109,311
    
    
    
    2.71Total interest-bearing deposits
    
    
    11,303,770
    
    
    
    303,666
    
    
    
    3.59
    
    
    
    11,174,735
    
    
    
    210,264
    
    
    
    2.52Repurchase agreements
    
    
    8,220,132
    
    
    
    230,258
    
    
    
    3.75
    
    
    
    6,122,196
    
    
    
    159,779
    
    
    
    3.49Federal Home Loan Bank of New York advances
    
    
    5,423,550
    
    
    
    167,553
    
    
    
    4.13
    
    
    
    2,306,073
    
    
    
    66,818
    
    
    
    3.87Total borrowed funds
    
    
    13,643,682
    
    
    
    397,811
    
    
    
    3.90
    
    
    
    8,428,269
    
    
    
    226,597
    
    
    
    3.59Total interest-bearing liabilities
    
    
    24,947,452
    
    
    
    701,477
    
    
    
    3.76
    
    
    
    19,603,004
    
    
    
    436,861
    
    
    
    2.98Noninterest-bearing liabilities:Noninterest-bearing deposits
    
    
    454,587
    
    
    
    
    
    
    
    
    
    
    
    436,163Other noninterest-bearing liabilities
    
    
    192,587
    
    
    
    
    
    
    
    
    
    
    
    143,273Total noninterest-bearing liabilities
    
    
    647,174
    
    
    
    
    
    
    
    
    
    
    
    579,436Total liabilities
    
    
    25,594,626
    
    
    
    
    
    
    
    
    
    
    
    20,182,440Stockholders equity
    
    
    5,087,379
    
    
    
    
    
    
    
    
    
    
    
    3,129,429Total Liabilities and Stockholders Equity
    
    $
    30,682,005
    
    
    
    
    
    
    
    
    
    
    $
    23,311,869Net interest income/net interest rate spread (2)
    
    
    
    
    
    $
    464,396
    
    
    
    1.37
    %
    
    
    
    
    
    $
    409,749
    
    
    
    1.95
    %Net interest-earning assets/net interest margin (3)
    
    $
    5,375,575
    
    
    
    
    
    
    
    2.03
    %
    
    $
    3,271,807
    
    
    
    
    
    
    
    2.38
    %Ratio of interest-earning assets to
interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    1.22
    x
    
    
    
    
    
    
    
    
    
    
    1.17
    x
 
 (1)
    
    Amount is net of deferred loan fees and allowance for loan losses and includes non-performing
loans.(2)
    
    Determined by subtracting the annualized weighted average cost of total interest-bearing
liabilities from the annualized weighted average yield on total interest-earning assets.(3)
    
    Determined by dividing annualized net interest income by total average interest-earning assets.(4)
    
    At September 30, 2006, the weighted-average rate on our outstanding interest-earning
assets, other than our FHLB stock, was as follows: first mortgage loans, 5.75%, consumer and other
loans, 6.54%, federal funds sold, 5.25%, mortgage-backed securities, 5.09%, investment securities,
4.58%. At September 30, 2006, the weighted-average rate on our outstanding interest-bearing
liabilities was as follows: savings accounts, 0.91%, interest-bearing transaction accounts, 3.31%,
money market accounts, 3.47%, time deposits, 4.60%, borrowed funds, 4.00%. Page 24




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Comparison of Operating Results for the Three-Months Ended September 30, 2006 and 2005
 General.
 Interest and Dividend Income.
    Interest Expense.
 Page 25




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Net Interest Income.
 Page 26




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Provision for Loan Losses.
   Non-Interest Income.
 Non-Interest Expense.
 Income Taxes.
 Page 27




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Comparison of Operating Results for the Nine-month Periods Ended September 30, 2006 and 2005
 General.
 Interest and Dividend Income.
    Page 28




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Interest Expense.
    Net Interest Income.
 Page 29




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##### Table of Contents



Provision for Loan Losses.
 Non-Interest Income.
 Non-Interest Expense.
 Income Taxes.
 Page 30




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Liquidity and Capital Resources
      Page 31




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Page 32




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Off-Balance Sheet Arrangements and Contractual Obligations
  Page 33




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Payments Due By PeriodLess Than
    
    
    1 Year to
    
    
    3 Years to
    
    
    More ThanContractual Obligation
    
    Total
    
    
    1 Year
    
    
    3 Years
    
    
    5 Years
    
    
    5 Years(In thousands)First mortgage loan originations
    
    $
    167,522
    
    
    $
    167,522
    
    
    $
    
    
    
    $
    
    
    
    $
    Mortgage loan purchases
    
    
    691,960
    
    
    
    691,960
    
    
    
    
    
    
    
    
    
    
    
    Mortgage-backed security purchases
    
    
    586,450
    
    
    
    586,450
    
    
    
    
    
    
    
    
    
    
    
    Operating leases
    
    
    120,650
    
    
    
    7,069
    
    
    
    14,440
    
    
    
    13,312
    
    
    
    85,829Total
    
    $
    1,566,582
    
    
    $
    1,453,001
    
    
    $
    14,440
    
    
    $
    13,312
    
    
    $
    85,829
  Critical Accounting Policies
  Allowance for Loan Losses.
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Asset Impairment Judgments.
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Hudson City Bancorp, Inc. Form 10-Q





Pension and Other Postretirement Benefit Assumptions.








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Hudson City Bancorp, Inc. Form 10-Q





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Hudson City Bancorp, Inc. Form 10-Q




Item 3.  Quantitative and Qualitative Disclosures About Market Risk




General.










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Hudson City Bancorp, Inc. Form 10-Q





Simulation Model.




Change in
    
    Percent Change inInterest Rates
    
    Net Interest Income(Basis points)200
    
    
    
    (17.44
    )100
    
    
    
    (8.33
    )50
    
    
    
    (4.24
    )
    
    
    
    (50
    )
    
    
    2.62(100
    )
    
    
    2.02(200
    )
    
    
    (6.11
    )




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Hudson City Bancorp, Inc. Form 10-Q





Present Value of EquityAs Percent of PresentPresent Value of Equity
    
    Value of AssetsBasisChange in
    
    Dollar
    
    Dollar
    
    Percent
    
    Present
    
    PointsInterest Rates
    
    Amount
    
    Change
    
    Change
    
    Value Ratio
    
    Change(Basis points)
    
    (Dollars in thousands)200
    
    
    $
    3,942,224
    
    
    $
    (1,733,485
    )
    
    
    (30.54
    )%
    
    
    12.67
    %
    
    
    (426
    )100
    
    
    
    4,799,988
    
    
    
    (875,721
    )
    
    
    (15.43
    )
    
    
    14.85
    
    
    
    (208
    )50
    
    
    
    5,222,288
    
    
    
    (453,421
    )
    
    
    (7.99
    )
    
    
    15.85
    
    
    
    (108
    )
    
    
    
    5,675,709
    
    
    
    
    
    
    
    
    
    
    
    16.93
    
    
    
    (50
    )
    
    
    5,860,210
    
    
    
    184,501
    
    
    
    3.25
    
    
    
    17.22
    
    
    
    29(100
    )
    
    
    5,592,077
    
    
    
    (83,632
    )
    
    
    (1.47
    )
    
    
    16.33
    
    
    
    (60
    )(200
    )
    
    
    4,276,079
    
    
    
    (1,399,630
    )
    
    
    (24.66
    )
    
    
    12.51
    
    
    
    (442
    )






GAP Analysis.


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Hudson City Bancorp, Inc. Form 10-Q

At September 30, 2006More than
    
    
    More thanMore than
    
    
    More than
    
    
    two years
    
    
    three yearsSix months
    
    
    six months
    
    
    one year to
    
    
    to three
    
    
    to five
    
    
    More thanor less
    
    
    to one year
    
    
    two years
    
    
    years
    
    
    years
    
    
    five years
    
    
    Total(Dollars in thousands)Interest-earning assets:First mortgage loans
    
    $
    1,285,919
    
    
    $
    1,301,621
    
    
    $
    2,262,342
    
    
    $
    2,071,470
    
    
    
    3,011,162
    
    
    $
    7,936,470
    
    
    $
    17,868,984Consumer and other loans
    
    
    93,956
    
    
    
    1,308
    
    
    
    48,499
    
    
    
    3,462
    
    
    
    18,444
    
    
    
    241,863
    
    
    
    407,532Federal funds sold
    
    
    146,275
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    146,275Mortgage-backed securities
    
    
    1,276,755
    
    
    
    1,565,765
    
    
    
    1,399,013
    
    
    
    938,818
    
    
    
    3,028,084
    
    
    
    240,555
    
    
    
    8,448,990FHLB stock
    
    
    412,381
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    412,381Investment securities
    
    
    1,129,598
    
    
    
    1,071,258
    
    
    
    474,299
    
    
    
    995,570
    
    
    
    1,552,667
    
    
    
    437,758
    
    
    
    5,661,150Total interest-earning assets
    
    
    4,344,884
    
    
    
    3,939,952
    
    
    
    4,184,153
    
    
    
    4,009,320
    
    
    
    7,610,357
    
    
    
    8,856,646
    
    
    
    32,945,312Interest-bearing liabilities:Savings accounts
    
    
    47,988
    
    
    
    41,815
    
    
    
    41,222
    
    
    
    41,222
    
    
    
    82,444
    
    
    
    577,110
    
    
    
    831,801Interest-bearing demand accounts
    
    
    216,490
    
    
    
    216,491
    
    
    
    334,826
    
    
    
    334,826
    
    
    
    563,426
    
    
    
    619,938
    
    
    
    2,285,997Money market accounts
    
    
    21,264
    
    
    
    21,264
    
    
    
    85,055
    
    
    
    85,055
    
    
    
    170,111
    
    
    
    467,804
    
    
    
    850,553Time deposits
    
    
    5,691,607
    
    
    
    1,745,303
    
    
    
    584,360
    
    
    
    189,211
    
    
    
    141,287
    
    
    
    
    
    
    
    8,351,768Borrowed funds
    
    
    3,232,000
    
    
    
    1,275,000
    
    
    
    16,000
    
    
    
    
    
    
    
    600,000
    
    
    
    10,525,000
    
    
    
    15,648,000Total interest-bearing liabilities
    
    
    9,209,349
    
    
    
    3,299,873
    
    
    
    1,061,463
    
    
    
    650,314
    
    
    
    1,557,268
    
    
    
    12,189,852
    
    
    
    27,968,119Interest rate sensitivity gap
    
    $
    (4,864,465
    )
    
    $
    640,079
    
    
    $
    3,122,690
    
    
    $
    3,359,006
    
    
    
    6,053,089
    
    
    $
    (3,333,206
    )
    
    $
    4,977,193Cumulative interest rate sensitivity gap
    
    $
    (4,864,465
    )
    
    $
    (4,224,386
    )
    
    $
    (1,101,696
    )
    
    $
    2,257,310
    
    
    
    8,310,399
    
    
    $
    4,977,193Cumulative interest rate sensitivity gap
as a percent of total assets
    
    
    (14.46)
    %
    
    
    (12.56)
    %
    
    
    (3.28)
    %
    
    
    6.71
    %
    
    
    24.71
    %
    
    
    14.80
    %Cumulative interest-earning assets
as a percent of interest-bearing
liabilities
    
    
    47.18
    %
    
    
    66.23
    %
    
    
    91.88
    %
    
    
    115.87
    %
    
    
    152.67
    %
    
    
    117.80
    %




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Hudson City Bancorp, Inc. Form 10-Q




Item 4.  Controls and Procedures









PART II  OTHER INFORMATION





Item 1.  Legal Proceedings







Item 1A.  Risk Factors




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Hudson City Bancorp, Inc. Form 10-Q




Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds




MaximumTotal Number of
    
    Number of SharesTotal
    
    
    
    
    
    Shares Purchased
    
    that May Yet BeNumber of
    
    Average
    
    as Part of Publicly
    
    Purchased UnderShares
    
    Price Paid
    
    Announced Plans
    
    the Plans orPeriod
    
    Purchased(3)
    
    per Share
    
    or Programs
    
    Programs (1) (2)July 1-July 31, 2006
    
    
    1,760,000
    
    
    $
    13.20
    
    
    
    1,760,000
    
    
    
    56,919,000August 1-August 31,
2006
    
    
    2,665,000
    
    
    
    12.97
    
    
    
    2,665,000
    
    
    
    54,254,000September
1-September 30,
2006
    
    
    1,625,000
    
    
    
    13.19
    
    
    
    1,625,000
    
    
    
    52,629,000Total
    
    
    6,050,000
    
    
    
    13.10
    
    
    
    6,050,000





|    |  |                                                                                                                                                                                                                                                                                              
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) |  | On June 20, 2006, Hudson City Bancorp announced the adoption of its seventh Stock Repurchase Program, which authorized the repurchase of up to
56,975,000 shares of common stock. This program has no expiration date and has 52,629,000 shares yet to be purchased as of September 30, 2006.
|   
|(2) |  | On October 18, 2005, Hudson City Bancorp announced the adoption of its sixth Stock Repurchase Program, which authorized the repurchase of up to
29,880,000 shares of common stock. The remaining shares of this program were
purchased in July 2006.                                         
|   
|(3) |  | Amounts do not reflect purchases of common stock by the trustee of the
recognition and retention plan.                                                                                                                                                                                       




Item 3.  Defaults Upon Senior Securities




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Hudson City Bancorp, Inc. Form 10-Q




Item 4.  Submission of Matters to a Vote of Security Holders







Item 5.  Other Information







Item 6.  Exhibits


Exhibit Number
    
    Exhibit31.1
    
    Certification of Chief Executive Officer31.2
    
    Certification of Chief Financial Officer32.1
    
    Written Statement of Chief Executive Officer and
Chief Financial Officer furnished pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002,
18 U.S.C. Section 1350. *





|  |  |                                                                                                                                                                   
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* |  | Pursuant to SEC rules, this exhibit will not be deemed filed for purposes of Section 18
of the Exchange Act or otherwise subject to the liability of that section.

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Hudson City Bancorp, Inc. Form 10-Q




SIGNATURES




Hudson City Bancorp, Inc.Date: November 8, 2006
    
    By:
    
    /s/ Ronald E. Hermance, Jr.

Ronald E. Hermance, Jr.Chairman, President and ChiefExecutive Officer(principal executive officer)Date: November 8, 2006
    
    By:
    
    /s/ Denis J. SalamoneDenis J. SalamoneSenior Executive Vice President andChief Operating Officer(principal financial and
accounting officer)


Page 45