HCBK (MM)

Companies in the Savings and Loans industry have posted improving numbers of late as most banks are finally setting aside less money to cover loan losses. More thorough and cautious credit checks have led to fewer delinquent loans and greater financial stability. While the improving margins helped narrow losses, long-term growth worries still loom. The Bedford Report examines the outlook for companies in the Savings & Loans Industry and provides research reports on Hudson City Bancorp, Inc. (NASDAQ: HCBK) and Flagstar Bancorp, Inc. (NYSE: FBC). Access to the full company reports can be found at:

www.bedfordreport.com/2011-05-HCBK

www.bedfordreport.com/2011-05-FBC

Although employment numbers are improving, analysts argue loan demand remains low due to the average American's weaker appetite for debt following the financial crisis. It is believed that many banks will not see much revenue growth because of this, but that instead, declining credit costs will be the primary driver of profits moving forward.

Several Banks in the industry have warned that the increased role of government-owned companies in the mortgage market may weigh on results moving forward. Housing market reform could create opportunities for companies in the savings and loans industry with marginal debt issues. Smaller banks may be able to originate more housing loans as Washington mulls its options regarding government sponsored enterprises.

The Bedford Report releases regular market updates on the Savings and Loans Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

In the first quarter Hudson City Bancorp reported a 37 percent year-on-year drop in profits as lower interest and dividend income, and increased non-interest expense hurt bottom line results. Hudson City also declared a quarterly dividend of 8 cents per share -- a 47% decrease from the prior quarter's dividend of 15 cents.

Flagstar Bancorp significantly reduced its net loss from both the prior quarter and the first quarter of 2010 in the most recent quarter. Lower credit costs are a primary reason Flagstar Bancorp saw its operating results improve in the first quarter. Flagstar Bancorp lost $31.7 million, down from $81.9 million the year before.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer

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