It will shortly file an application with the Federal Reserve to become a bank holding company. Currently, both Hudson City and Hudson City Bancorp are regulated by the Office of Thrift Supervision (OTS).
Ronald Hermance, chairman, president and CEO of Hudson City Bancorp, said: “At a time when trust and confidence in the banking industry is being challenged like never before, we believe it is important to stay ahead of any legal and regulatory changes implemented with regard to federal financial oversight. In order to accomplish this, we believe that it is necessary to take affirmative action by converting to a national bank charter now.
“With assets in excess of $60bn, Hudson City is one of the largest savings banks in the US and is among the top twenty-five banks in the country by asset size. In light of the remarkable growth we have experienced to date, the current size of our institution, and the continued growth we expect to see in the future, we believe the national bank charter is best suited for an institution of our size and provides us with the most flexibility going forward.
“We do not plan on changing our current business model. Our focus remains on attracting deposits and originating and purchasing first mortgage loans on residential properties, and we expect to continue this focus as a national bank.”
