SOURCE: Hudson City Bancorp, Inc.

May 15, 2007 10:00 ET

Hudson City New Branch Growth Exceeds Expectations

PARAMUS, NJ -- (MARKET WIRE) -- May 15, 2007 -- Hudson City Bancorp, Inc. ("Hudson City") (NASDAQ: HCBK) recently opened new branches in Staten Island and White Plains, New York; Monroe, Connecticut; and Kendall Park, New Jersey, increasing the Bank's total number of branches to 114.

"We are pleased to report that these four branches are exceeding all of our deposit growth expectations," said Ronald E. Hermance, Jr., Chairman, President and Chief Executive Officer of Hudson City.

This news is significant because three out of four of these branches are located in relatively new market areas for Hudson City. The Bank first entered the Staten Island market in August 2005 and established a foothold in Westchester County, New York, and Fairfield County, Connecticut, with the acquisition of Sound Federal in July 2006. "Our contiguous market strategy enables Hudson City to operate in three states with a solid presence in nine of the nation's top fifty U.S. counties as measured by median household income," said Hermance.

This strategy, along with an industry-leading efficiency ratio, enhances Hudson City's long-term competitive position. (Hudson City continues to be The Most Efficient Bank in the Country with a 26% efficiency ratio versus an average of 58% among the top fifty banks, based on asset size.)

It is also important to note that Hudson City's deposits per branch surpass the national average. Hudson City averaged approximately $125 million in deposits per branch as of March 31, 2007, far exceeding the national average for FDIC-insured institutions of $68 million. Furthermore, Hudson City has validated its winning formula by successfully proving its ability to enter a new market and introduce the unique business model of Bank on Better Values.

Hudson City embarked on its winning growth strategy in 2003 and has since increased its number of branches by 41%, from 81 to 114. It is planning to open an additional six branches in 2007 with two branches in New Jersey; one branch in Fairfield, Connecticut; and three branches in Long Island, New York.

At the beginning of 2007, Forbes named Hudson City One of America's Best Big Companies and it has been included in the S&P 500 Index. In addition, Hudson City received top rankings in the Wall Street Journal's 2007 Annual Shareholder Performance Scoreboard. The Wall Street Journal cited Hudson City as the number two bank in the country as ranked by a five-year average return of 30.29%.

Hudson City Savings Bank, among the top fifty banks in the United States by asset size, is recognized as The Most Efficient Bank in the country. This enables Hudson City to deliver significant values to customers in the form of higher deposit yields, competitive mortgage rates, and lower fees. Hudson City, the largest savings bank headquartered in New Jersey, also serves customers throughout the surrounding metropolitan area with branches located in Westchester, Fairfield, Putnam, and Rockland counties, as well as in Long Island, Staten Island, and the New Jersey suburbs of Philadelphia. Deposit accounts at Hudson City are FDIC insured to the maximum allowed by law.

This release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue," and "potential" or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hudson City Bancorp that are subject to various factors which could cause actual results to differ materially from these estimates. Any or all of the forward-looking statements in this release and in any other public statements made by Hudson City may turn out to be wrong. They can be affected by inaccurate assumptions Hudson City might make or by known or unknown risks and uncertainties. Consequently, no forward-looking statement can be guaranteed. Hudson City does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

Contact Information

    Susan Munhall
    Investor Relations
    Hudson City Bancorp, Inc.
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