Astoria Financial net income up 20 percent
Astoria Financial Corp., one of Long Island's largest banking companies, said its net income rose by more than 20 percent in the second quarter from a year earlier, as non-interest income and the quality of its loan portfolio improved.
Earnings per share remained at 13 cents because of $2.8 million in dividends paid to preferred stock holders. The holding company for the 85-branch Astoria Federal Savings and Loan Association said net income was $15.6 million but that $12.8 million was available to common shareholders.
Lake Success-based Astoria said net interest income, the difference between the revenue generated from a bank's assets and the expenses associated with liabilities, fell by 2 percent, to $84.9 million.
It said net interest margin, the difference between the interest a bank earns on its assets such as loans and the interest it pays out to depositors, for the quarter ended June 30 rose to 2.22 percent from 2.14 percent a year earlier.
Astoria also reported that total assets fell 5 percent from a year earlier to $16.2 billion as outstanding loans decreased.
The bank's provision for loan losses fell in the quarter from a year earlier, to $4.5 million, about half the figure a year earlier. "The decline in the provision is a reflection of the improvement in net loan charge-offs, total loan delinquencies and non-performing loans, and the contraction of the overall loan portfolio," president and chief executive Monte N. Redman said.
Non-interest income rose by 20 percent from a year earlier, to $18.6 million, which Astoria attributed to increased gains on sales of securities and an increase in net mortgage banking income.