This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

New York Community Bancorp Reports Strong Lending Volume

Stocks in this article: NYB

  • 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 during the third quarter , absent the impact of prepayment penalties."

The third-quarter return on average assets was 1.25% increasing from 1.23% in the second quarter, but declining from 1.43% a year earlier.

While New York Community's provision for losses on non-covered by FDIC loss-sharing agreements loan losses increased to $18 million during the third quarter from $15 million in the second quarter, the provision was down from $32 million a year earlier, and Ficalora said that "balances of non-performing loans, delinquencies, and net charge-offs all declined," adding that as of Sept. 30, "non-performing non-covered loans represented 1.44% of total loans--the lowest level in ten quarters--as the balance fell $86.1 million, or 17.1%, from the balance at the end of June."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs