2 LI banks report drop in earnings
Lake Success-based Astoria Federal Savings cited pretax charges of $3.4 million for severance- related expenses as a factor in its decline in first-quarter earnings. It cut 142 jobs in February. Credit: Danielle Finkelstein
And Astoria Financial Corp., parent of Astoria Federal Savings and Loan Association, reported a 63 percent decline in earnings, citing employee severance expenses as it tried to cut costs. The Lake Sucess-based bank did report growth in its loan portfolio for a change.
Bank earnings usually reflect the health of the local economy, especially the housing sector, as well as the national interest rate environment.
It said net outstanding loans rose by $385.5 million from a year earlier, to $30.5 billion as of March 31 of this year. But it said interest income produced by loans fell $16.1 million to $398.2 million.
Mortgage banking activity generated income of $35.2 million in the quarter, up by 76.4 percent from a year earlier, the bank said.
President and chief executive officer Joseph Ficalora said in a conference call with analysts, "The impact of the modest decline in our margin on our first-quarter earnings was largely offset by the volume of loans we produced over the course of the quarter and by the increase in income from mortgage banking activity."
New York Community's shares closed Wednesday at $13.33, down 32 cents, on the New York Stock Exchange.
Monte N. Redman, president and chief executive, said in a statement that what he called "robust" multi-family and commercial real estate lending in the quarter fueled growth in the bank's loan portfolio, the first such growth in several years.
Astoria's shares closed down 10 cents at $9.11.
'The strategy that I'm seeing ... is very chaotic' A Newsday review of court records sheds new light on ICE's Long Island operation and where it's happening. NewsdayTV's Ken Buffa, Shari Einhorn, investigative reporter Josefa Velásquez and attorney Reuben Kerben break it down.
'The strategy that I'm seeing ... is very chaotic' A Newsday review of court records sheds new light on ICE's Long Island operation and where it's happening. NewsdayTV's Ken Buffa, Shari Einhorn, investigative reporter Josefa Velásquez and attorney Reuben Kerben break it down.
