3 Financial Stocks Generate More Trading Volatility After Earnings

Hudson City Bancorp Inc. (NASDAQ:HCBK) dropped to a fourth quarter loss, but results topped expectations. Reported a loss of $360.5 million (73 cents per diluted share) in the quarter. The savings and loan company had net income of $121.2 million or 25 cents per share in the year earlier quarter. HCBK beat the mean analyst estimate of a loss of 74 cents per share.

Ronald E. Hermance, Jr., Chairman and Chief Executive Officer commented, “Our net loss for the quarter was a result of the previously announced extinguishment of structured borrowings. During the past year, the low interest rate environment resulted in elevated levels of liquidity as borrowers prepaid or refinanced their mortgage loans and we experienced a significant increase in the calls of our investment securities. Our options for reinvesting this excess liquidity were limited since the yields available on mortgage-related assets remained at or near historical low levels and we did not believe it would be prudent to put such long-term assets on our balance sheet.”

Competitors to Watch: New York Community Bancorp, Inc. (NYSE:NYB), Kearny Financial Corp. (NASDAQ:KRNY), OceanFirst Financial Corp. (NASDAQ:OCFC), Ocean Shore Holding Co. (NASDAQ:OSHC), Northwest Bancshares, Inc. (NASDAQ:NWBI), Provident New York Bancorp (NASDAQ:PBNY), Rockville Financial New Inc (RCKBD), Oritani Financial Corp. (NASDAQ:ORIT), Magyar Bancorp, Inc. (NASDAQ:MGYR), and Roma Financial Corporation (NASDAQ:ROMA).

Popular Inc. (NASDAQ:BPOP) climbed to a profit in the fourth quarter, but still came up short of analyst expectations. Reported a profit of $3 million (0 cents per diluted share) in the quarter. The bank had a net loss of $227.1 million or a loss of 22 cents per share in the year earlier quarter. Reported a profit of $3 million (0 cents per diluted share) in the quarter. The bank had a net loss of $227.1 million or a loss of 22 cents per share in the year earlier quarter. BPOP fell short of the mean analyst estimate of 4 cents per share.

Mr. Richard L. Carrin, Chairman of the Board and Chief Executive Officer, said, “The year 2011 was a turnaround year for us. We were able to achieve operational profitability for the first time since 2006 by maintaining strong margins, producing strong and stable top line revenue, and continuing to reduce credit costs. We believe we can build on these results and make further progress in 2012. Based on our current credit trends and our current economic outlook for Puerto Rico and the U.S., we believe that we can continue to reduce credit costs and achieve net income of between $185 million and $200 million during 2012.”

Competitors to Watch: Doral Financial Corp. (NYSE:DRL), Oriental Financial Group Inc. (NYSE:OFG), First BanCorp. (NYSE:FBP), Eurobancshares Inc. (EUBK), W Holding Company, Inc. (WHI), Bank of America Corp. (NYSE:BAC), SunTrust Banks, Inc. (NYSE:STI), Wells Fargo & Company (NYSE:WFC), and The Bank of Nova Scotia (NYSE:BNS).

E*TRADE Financial Corporation (NASDAQ:ETFC) reported its results for the fourth quarter. Loss narrowed to $6.3 million (loss of 2 cents per diluted share) from $24.1 million (loss of 11 cents per share) in the same quarter a year earlier. Revenue noninterest income was $185.8 million last quarter. ETFC fell short of the mean analyst estimate of 20 cents per share. It fell short of the average revenue estimate of $488.9 million.

“While there were unique items impacting our results in the quarter, our return to full year profitability in 2011, for the first time in five years, marks significant progress for the company,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial. “Despite the systemic burdens of an unfavorable macro-economic environment, a regulatory transition, and certain well-publicized events in 2011 – our brokerage business generated nearly twice the net new accounts, with healthy growth in both net new assets and DARTs compared to 2010. Furthermore, we continue to de-risk and strengthen the franchise, with an ever-shrinking credit overhang and significantly improved capital levels over last year. As we enter the new year, we are confident in our capacity to manage through current macro-economic challenges, and even more optimistic in our ability to capitalize on future improvements in market and economic conditions. Over the coming months, we have several platform enhancements, new products and services scheduled to launch, providing us a high level of confidence in the continued strength of our franchise.”

Competitors to Watch: TD Ameritrade Holding Corp. (NASDAQ:AMTD), The Charles Schwab Corp. (NYSE:SCHW), optionsXpress Hldgs., Inc. (NASDAQ:OXPS), Interactive Brokers Group, Inc. (NASDAQ:IBKR), Morgan Stanley (NYSE:MS), FXCM Inc (NYSE:FXCM), Gain Capital Holdings Inc (NYSE:GCAP), TradeStation Group, Inc. (NASDAQ:TRAD), SWS Group, Inc. (NYSE:SWS), and Raymond James Financial, Inc. (NYSE:RJF).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com