New York Community Earnings Beat With Housing Help

  • New York Community Bancorp reports first-quarter earnings per share of 27 cents.
  • Analysts were expecting EPS of 26 cents.
  • Mortgage banking revenue grows 76% year-over-year, to $35.2 million.

NEW YORK ( TheStreet) -- New York Community Bancorp ( NYB) on Tuesday reported strong first-quarter loan growth and a 76% year-over-year increase in mortgage banking revenue, to $35.2 million.

The Westbury, N.Y., lender reported first-quarter earnings of $118.3 million, or 27 cents a share, compared to $117.7, or 27 cents a share, during the fourth quarter, and $123.2 million, or 28 cents a share, during the first quarter of 2011.
New York Community Bancorp CEO Joseph R. Ficalora

The first-quarter earnings came in a penny ahead of the 26 cent estimate among analysts polled by Thomson Reuters.

Despite the strong mortgage banking revenue, total first-quarter noninterest income of $70.0 million only increased 4% sequentially and 6% year-over-year, because the fourth quarter results included $10 million in Federal Deposit Insurance Corp. indemnification income, and the first-quarter 2011 results included $10 million in securities gains.

First-quarter net interest income totaled $288.4 million, declining from $300.3 million the previous quarter and $303.3 million a year earlier, "primarily due to the downward repricing of the Company's interest-earning assets, which outpaced the downward repricing of its deposits and borrowed funds.' The company also said that "prepayment penalty income decreased both year-over-year and linked-quarter, as refinancing activity in the multi-family and commercial real estate markets declined."

New York Community Bancorps first-quarter net interest margin declined to 3.24% from 3.45% the previous quarter, and 3.58% a year earlier.

Total loans held for investment -- excluding those acquired from failed institutions and covered by FDIC loss-sharing agreements -- totaled $26.6 billion as of March 31, increasing 4% during the first quarter, which CEO Joseph Ficalora said was "fueled by multi-family and commercial real estate loan production," as the company "originated $1.1 billion of multi-family loans in the first quarter, in addition to originating $976.3 million of CRE loans."

Ficalora added that "In addition to the high volume of loans we produced for investment, we originated $2.5 billion of one-to-four family loans for sale."

The company's first-quarter return on average assets was 1.13%, compared to 1.12% the previous quarter, and 1.15% a year earlier. The return on average tangible equity was 15.90% during the first quarter, compared to 15.80% in the fourth quarter, and 16.21%, in the first quarter of 2011.

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