Astoria Financial 3Q income rises, assets shrink

Astoria Financial Corp., the Lake Success company that owns Astoria Federal Savings and Loan Association, reported third quarter income of $21.5 million - more than two and half times what it made in the same quarter a year ago - even as its assets and loans shrank.

In a statement, company chairman and chief executive George L. Engelke Jr. said the improved earnings were the result of fewer bad loans and delinquencies. Bad loans totaled $399.6 million at the end of the quarter, a decrease of $15.5 million from the previous quarter. That allowed the company to set aside $20 million for potential loan losses - $15 million less than in the previous quarter and $30 million less than a year ago.

However, the company's total assets shrank to $17.7 billion, down from $19.0 billion at the end of last year.

Company president Monte Redman said that's largely the result of agencies like the Federal Housing Administration offering low rates on 30-year mortgages that Astoria isn't willing to match by cutting its rates or loosening underwriting standards.

Astoria has 85 branches in the metropolitan area.