Lower earnings at two large LI banks

Two of the largest banks based on Long Island, New York Community Bancorp and Astoria Financial Corp., reported lower earnings Wednesday for last year's final quarter.

New York Community cited a drop in income from securities. Astoria blamed a decline in its residential loan portfolio as borrowers prepaid mortgages. It said it had frozen wages and was reviewing staffing levels.

Westbury-based New York Community said earnings fell by 21 percent to $117.7 million, or 27 cents a share, in the three months ended Dec. 31, from $149.8 million, or 34 cents a share, a year earlier. The results were about in line with analysts' estimates. The bank cited lower after-tax net securities gains in the quarter compared to a year earlier.

Its net interest income -- the difference between the interest a bank earns on assets like loans and investments and what it pays out to depositors -- was $300.3 million in the fourth quarter, down $4.7 million from a year earlier. New York Community blamed lower yields on interest-earning assets.

New York Community laid off an undisclosed number of its workers in last year's final quarter, including some locally. At the end of 2010 it had 3,883 employees, according to its annual report.

It operates New York Community Bank, with 241 branches in the metropolitan area and elsewhere; and New York Commercial Bank, with 34 branches in the region. Units of New York Community Bank include Queens County Savings Bank, Roslyn Savings Bank, Richmond County Savings Bank, Roosevelt Savings Bank and Atlantic Bank.

The corporation's shares closed Wednesday at $12.87 on the New York Stock Exchange, down 22 cents.

Lake Success-based Astoria, the holding company for 85-branch Astoria Federal Savings and Loan Association, said net income was $11.8 million, or 12 cents a share, slightly lower than analysts' consensus estimates, and down from $23.8 million, or 25 cents a share, for 2010's final quarter.

Net interest income for the quarter fell to $87.5 million from $101.2 million a year earlier.

Astoria's shares closed down 25 cents to $9 on the New York exchange.