In His Own Words: Ron Hermance, chairman and CEO of Hudson City Bancorp
"The [business] model is really very simple, but it's very resilient. It operates in all kinds of economies, as long as you can keep your operating overhead low. I've got a tremendous cost advantage. There is no lending authority in the branches. We offer [a] fairly limited menu of deposit products and will refer mortgages into our department for underwriting. My average branch is $175 million [in deposits]and there are 131 one of them. We pay higher rates on our deposits, charge less on our loans, because we're so efficient."