Wednesday, New York Community Bancorp Inc. (NYB), a holding company for New York Community Bank and New York Commercial Bank, reported a surge in third-quarter profit, primarily helped by higher net interest income.
The Westbury, New York-based banker said net income increased 69.8% to $98.57 million from $58.06 million, with earnings per share rising 64.7% to $0.28 from $0.17 year-on-year. On average, 17 analysts polled by Thomson Reuters expected New York Community Bancorp to post earnings of $0.26 per share for the third quarter. Analysts' estimates typically exclude one-time items.
Operating earnings rose 6.4% to $90.2 million or $0.26 per share from $84.8 million or $0.25 per share a year ago, despite an increase in FDIC insurance premiums and the provision for loan losses.
Net interest income rose 24.5% to $226.36 million from $181.88 million last year. Seven analysts estimated consensus revenue of $247.43 million for the quarter.
Provision for loan losses was $15 million compared with $400 thousand a year ago. Net interest income after provision for loan losses was $211.36 million compared with $181.48 million a year ago.
Total non-interest income was $15.07 million compared with loss of $19.33 million last year. Total interest expense for the third quarter was $176.58 million compared with $216.52 million in 2008.
The banker reported a substantial net interest margin which rose 49 basis points year-over-year and 11 basis points linked-quarter to 3.17%.
Loans grew at an annualized rate of 4.6% in the quarter, reflecting third-quarter originations of $921.1 million. Together, multi-family and commercial real estate loan originations totaled $705.8 million and featured an average yield that was 338 basis points above the average five-year Constant Maturity Treasury rate.
For the nine months, net income was $243.71 million or $0.70 per share compared with a loss of $24.35 million or $0.08 per share last year.
Net interest income was $650.86 million, compared with $473.89 million a year ago. Provision for loan losses rose to $33 million from $2.10 million a year ago. Net interest income after provision for loan losses was $617.86 million compared with $471.79 million last year.
Total interest expense decreased to $553.88 million from $720.13 million last year. Total interest income increased to $1.20 billion from $1.19 billion in 2008.
The board declared a quarterly cash dividend of $0.25 per share, payable on November 17 to shareholders of record at the close of business on November 6.
NYB is trading up 1.27% at $11.14 on the NYSE.
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