2. Hudson City Bancorp

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Shares of Hudson City Bancorp ( HCBK) have gained 11% in 2012, though over a one-year period, shares are still down nearly 40%.

The Paramus, New Jersey-based bank had total assets of $50.85 billion.

Hudson City reported a fourth-quarter net loss of $360.5 million, or 73 cents a share, springing from its second major balance sheet restructuring.

The company had been forced by the Office of Thrift Supervision during the first quarter to reverse its long-term leverage strategy of boosting wholesale borrowings and investing in securities, which had led to a declining net interest margin, which is the difference between a bank's average yield on loans and investments and its average cost for deposits and borrowings.

Guggenheim Securties analyst David Darst speculates that Hudson City might make a good takeover candidate for New York City Bancorp ( NYB). "A merger between New York Community and Hudson City could be a logical combination that occurs over the next year as HCBK faces strategic challenges that are not easily cured," he said.

Darst added that once Hudson City is finished restructuring its balance sheet, the company may not have the ability to resume growth due to a constrained market for jumbo mortgages and that as this materializes, "shareholders may become more vocal for a change."

2 analysts have a buy rating on the stock. 15 analysts have a hold rating while 4 analysts have a sell or underperform rating.

The consensus price target of $6.84 is just below Tuesday's closing price of $6.97.

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