FBR Capital Maintains an 'Underperform' on Hudson City Bancorp (HCBK); Rising FDIC Insurance Costs Add to Challenges
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Price: $10.12 --0%
Rating Summary:
2 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
Rating Summary:
2 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 20
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FBR Capital maintains an 'Underperform' on Hudson City Bancorp (NASDAQ: HCBK), PT $10.
FBR analyst says, "The majority of the company's efforts to reposition its balance sheet is now complete and its dividend has been reduced to a more sustainable level, but it now faces higher FDIC insurance costs. Changes in the assessment calculation will add an incremental $70 million of annual expense beginning in 2Q11, increasing Hudson City's expense base approximately 25%. Hudson City is actively facing its challenges, but finds itself in a very difficult operating environment. Our Underperform is a relative rating, reflecting the challenges of Hudson City's business model as an originator of primarily 30-year fixed-rate loans in a prolonged low rate environment in competition with the GSEs, and facing heightened regulatory scrutiny."
For more ratings news on Hudson City Bancorp click here and for the rating history of Hudson City Bancorp click here.
Shares of Hudson City Bancorp closed at $9.53 yesterday.
FBR analyst says, "The majority of the company's efforts to reposition its balance sheet is now complete and its dividend has been reduced to a more sustainable level, but it now faces higher FDIC insurance costs. Changes in the assessment calculation will add an incremental $70 million of annual expense beginning in 2Q11, increasing Hudson City's expense base approximately 25%. Hudson City is actively facing its challenges, but finds itself in a very difficult operating environment. Our Underperform is a relative rating, reflecting the challenges of Hudson City's business model as an originator of primarily 30-year fixed-rate loans in a prolonged low rate environment in competition with the GSEs, and facing heightened regulatory scrutiny."
For more ratings news on Hudson City Bancorp click here and for the rating history of Hudson City Bancorp click here.
Shares of Hudson City Bancorp closed at $9.53 yesterday.
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