- Meets estimates with third-quarter earnings of 27 cents.
- Portfolio loans grow at annualized pace of 10.4%.
- Mortgage banking income doubles from second quarter.
WESTBURY, N.Y. ( TheStreet) -- New York Community Bancorp (NYB) on Wednesday reported third-quarter net income of $119.8 million, or 27 cents a share, matching the consensus estimate among analysts polled by Thomson Reuters.
The results compared to net income of $119.5 million, or 27 cents a share, in the second quarter, and $135.6 million, or 31 cents a share, in the third quarter of 2010.
|New York Community Bancorp CEO Joseph R. Ficalora|
Third-quarter mortgage banking revenue more than doubled from the previous quarter, to $24.3 million, but it was down from $76.5 million a year earlier.Total noninterest income for the third quarter was $58.1 million, declining from $58.9 million the previous quarter, however, during the second quarter, New York Community reported several extraordinary items, including a $9.8 billion in gain from the disposition of its insurance premium financing subsidiary, Standard Funding Corp., and $7.6 million in Federal Deposit Insurance Corp. indemnification income, connected with acquisitions of failed banks. Third-quarter net interest income was $295 million, declining from $301.9 million the previous quarter but increasing from $286.2 million a year earlier. CEO Joseph Ficalora said that "While the decline in market interest rates contributed to a modest linked-quarter decline in net interest income, the drop in residential mortgage interest rates sparked a meaningful increase in mortgage banking revenues." The CEO also said that "our portfolio of non-covered held-for-investment loans grew at an annualized rate of 10.4% to $25.1 billion, linked-quarter, largely reflecting growth in our multi-family and commercial real estate loan portfolios." The company's third-quarter net interest margin was 3.33%, declining from 3.50% the previous quarter, but down only slightly from 3.36% a year earlier. The higher margin during the second-quarter reflected $25.8 million in prepayment revenue, which declined to $13.7 million in the third quarter. Ficalora said that the "net interest margin declined a single basis point