Zacks Analyst Interview Highlights: Hudson City Bancorp and Texas Capital Bancshares

Business Wire, July 3, 2008

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Eric Rothmann, who discusses Hudson City Bancorp (Nasdaq: HCBK) and Texas Capital Bancshares (Nasdaq: TCBI).

A synopsis of today's Analyst Interview is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Let's start with Hudson City Bancorp. What's your outlook here?

Even though Hudson City Bancorp (Nasdaq: HCBK) shares trade at a discount to the peer median (on a P/E basis), with 67% of the loan portfolio in residential real estate in the New York metropolitan area. Considering the industry overhangs, we remain cautious given the current valuations. Our rating remains a Sell, though a weaker one. Our six-month price target of $15.50 per share equates to a negative 11.7% expected total return.

Changing regions, where do you see Texas Capital Bancshares (Nasdaq: TCBI), presently?

Growth remains paramount, as 1Q08 average net loans expanded 25.9% year-over-year. Credit quality issues appear to have been contained presently. Following a review of the quarter, we have adjusted our 2008 and 2009 EPS expectation. In our opinion, Industry overhangs out-weigh TCBI's results for the quarter, as such we continue to the shares of this company as a Hold presently.

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