Aug. 16, 2013, 3:34 PM
- M&T Bank (MTB +0.2%) is "making good progress" on revising its Bank secrecy and anti-money laundering compliance issues, says a company spokesman, but that's as far as he goes.
- Regulators are holding up the bank's acquisition of Hudson City Bancorp (HCBK +0.2%) until certain "deficiencies" are corrected, The 60-day period M&T was granted by regulators to fix the issues expires today and it's not known if the bank has been granted an extension.
- Either bank is free to walk away from the deal if it doesn't close by Jan 31, 2014.
Aug. 13, 2013, 11:03 AM
- BMO Capital's Lana Chan plugs Fed rate hikes into her models and raises price targets on eight regional banks. Her assumptions are rate hikes beginning in mid-2015 and totaling 100 bps by the end of the year, with another 100 bps of hikes by the middle of 2016 - a total off 200 basis points over one year.
- Hold-rated BB&T (BBT +0.3%) is upped to $40 from $38, Comerica (CMA -0.2%) to $42 from $41, PNC Financial (PNC -0.7%) to $78 from $76, SunTrust (STI -0.3%) to $36 from $35, U.S. Bancorp (USB -0.4%) to $39 from $38, and Wells Fargo (WFC -0.1%) to $47 from $46.
- M&T Bank (MTB -0.7%) - still awaiting approval of its buyout of Hudson City Bancorp (HCBK -0.6%) - is lifted to $124 from $117.
- Buy-rated Fifth Third (FITB -1.3%) with price target $22, KeyCorp (KEY -0.4%) with price target $14, and Zions (ZION -1.7%) with price target $33 receive no boost, but Regions Financial (RF -0.1%) is lifted to $13 from $12.
- Many banks disclose their own analysis - but these (probably like Chan's) assume a "parallel" increase in rates in which the yield curve shape doesn't change. By their own analysis, Zions see itself benefitting more than its competitors, with net interest income to rise 18.1% on a 200 bp parallel increase in rates.
- Regional bank ETFs: IAT, KBE, KRE, RKH, QABA, KRU, KRS, KBWR.
Jul. 31, 2013, 8:33 AM
- HCBK EPS of $0.10 compares to $0.15 a year ago.
- Net interest income of $159.9M off 28.7% Y/Y as NIM fell to 1.64% from 2.12%.
- Provision for loan losses fell to $12.5M from double that amount a year ago thanks to stabilizing home prices and shrinkage in loan portfolio.
- Adjusted noninterest income of $2.4M vs. $2.9M a year ago.
- Closing date for merger with M&T Bank (MTB) extended until Jan. 31, 2014.
- CEO: "Profitable growth opportunities remains scarce ... the recent increase in longer-term interest rates did not have a measurable effect on us ... these rates remained too low to compel us to pursue balance sheet growth."
- Earlier: Earnings report. (PR)
Jul. 31, 2013, 8:06 AM
Jul. 31, 2013, 12:05 AM| Comment!
Jul. 30, 2013, 5:30 PM| Comment!
Jul. 18, 2013, 3:52 PMHudson City Bancorp (HCBK +1.7%) shrugs off a downgrade to Hold at Sandler O'Neill as suitor M&T Bank (MTB +1.1%) rises following yesterday's earnings (the acquisition is an all stock deal). Speaking to American Banker, M&T CFO Rene Jones says the bank remains comfortable with the purchase despite higher mortgage rates which could crimp Hudson City's profits. M&T, he says, is committed to reforming the anti-money laundering policies which have held up the merger's approval. | Comment!
Jul. 11, 2013, 10:32 AMIf rising interest rates were good for regional banks (KRE -1.6%), than falling rates must be bad? The regionals are notably in the red despite a broad market advance this morning. The stocks cruised right through the June rate fright, but are lower this week ahead of earnings, as analysts turn cautious given their now-pricey valuations, and as interest rates slide. Huntington (HBAN -1.5%), Regions (RF -3.1%), BB&T (BBT -1.1%), Hudson City (HCBK -1%), SunTrust (STI -1.7%), Fifth Third (FITB -0.2%), KeyCorp (KEY -2.1%), Zions (ZION -2.2%). | 2 Comments
Jul. 5, 2013, 12:51 PMRegional banks (KRE +2%) are the day's strongest performers - sailing through today's big rise in interest rates the way they cruised through June's increase. Interest rate margins are on the rise, economic growth should help sluggish loan volume, and the idea new bank capital rules will go easier on them than the TBTFs all factor in. Huntington (HBAN +2.9%), Regions (RF +1.8%), BB&T (BBT +1.9%), PNC (PNC +2.2%), Hudson City (HCBK +1.5%), Fifth Third (FITB +1.6%), SunTrust (STI +3.5%), KeyCorp (KEY +3%), Zions (ZION +3.5%), Comerica (CMA +2.7%), Popular (BPOP +1.2%). | Comment!
Jun. 21, 2013, 3:32 PMThe Fed's been continually over-optimistic about the economy throughout the recovery, says Sterne Agee and this time may prove no different. Expecting rates to retreat, the team spies opportunity in a basket of 4 large cap banks - C, JPM, USB, and WFC - as well as a group of regionals: PNC, MTB, RF, KEY. MTB is especially attractive given the roadblock now removed from its Hudson City (HCBK) purchase. A couple of smaller names of interest are First BanCorp (FBP) and PacWest (PACW) following the closing of its First California purchase. | 1 Comment
Jun. 18, 2013, 11:30 AM
May 24, 2013, 7:11 AMRemember M&T Bank's (MTB) proposed purchase of Hudson City Bancorp (HCBK)? Regulators have put the merger on ice and it's sending a chill through the executive suites of other regional banks (KRE) who were considering doing deals, but now figure it's not worth the regulatory scrutiny. In the past, conditions such as we're in - slow economy, weak loan growth - have prompted waves of bank mergers (it's happening in community banks). "I am not buying another bank for as long as I can see," sees one unnamed top executive. | Comment!
May 1, 2013, 3:58 PMHudson City Bancorp (HCBK -1.5%) slides post-earnings after slashing its quarterly dividend by 50% to $0.04/share amid a continuing interest margin squeeze. NIM fell to 1.78% from 1.97% in Q4, and 2.15% a year ago. The company provided no update on regulatory approval for its still-in-limbo merger with M&T Bank (MTB). | 1 Comment
Apr. 30, 2013, 5:04 PM
Apr. 30, 2013, 12:10 AMNotable earnings after Tuesday’s close: ACAS, AFFX, AJG, AMRS, APU, ATLS, AUY, AVB, BCOV, BGC, BLMN, BXP, CAVM, CLD, CRAY, DDR, DENN, DGI, DWA, EEP, EIX, ELGX, ELLI, ENTR, EQR, EZPW, FEIC, FIRE, FISV, FLEX, FMC, FTNT, GDOT, GEVO, GNW, HCBK, HT, HTCH, IACI, INT, JIVE, JLL, JMBA, LEAP, MDU, MERU, MRGE, MSPD, MTW, MWA, MX, NANO, NCR, NUVA, OKE, OKS, PRAA, PRXL, QCOR, QEP, REXX, RGC, RPXC, SGI, SHOR, SIMG, SKT, SM, SONS, STR, SWI, TE, TRMB, TRN, UGI, ULTI, UNTD, UNXL, VNR, VRSK, VRTX, WNC, WRI, WU, XCO | Comment!
Apr. 29, 2013, 5:35 PMNotable earnings after Tuesday’s close: ACAS, AFFX, AJG, AMRS, APU, ATLS, AUY, AVB, BCOV, BGC, BLMN, BXP, CAVM, CLD, CRAY, DDR, DENN, DGI, DWA, EEP, EIX, ELGX, ELLI, ENTR, EQR, EZPW, FEIC, FIRE, FISV, FLEX, FMC, FTNT, GDOT, GEVO, GNW, HCBK, HT, HTCH, IACI, INT, JIVE, JLL, JMBA, LEAP, MDU, MERU, MRGE, MSPD, MTW, MWA, MX, NANO, NCR, NUVA, OKE, OKS, PRAA, PRXL, QCOR, QEP, REXX, RGC, RPXC, SGI, SHOR, SIMG, SKT, SM, SONS, STR, SWI, TE, TRMB, TRN, UGI, ULTI, UNTD, UNXL, VNR, VRSK, VRTX, WNC, WRI, WU, XCO | 2 Comments
HCBK vs. ETF Alternatives
Hudson City Bancorp Inc serves as the holding company for Hudson City Savings Bank. It is a community and consumer-oriented retail savings bank offering traditional deposit products, residential real estate mortgage loans and consumer loans.
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