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Business

Earnings up at three Long Island banks

Astoria Financial, New York Community and Suffolk Bancorp

Astoria Financial, New York Community and Suffolk Bancorp reported stronger second quarter earnings for the quarter in the third full week of July 2015. This is Astoria's corporate office in Lake Success on June 9, 2011. Photo Credit: Danielle Finkelstein

Three Long Island bank holding companies, New York Community, Astoria Financial and Suffolk Bancorp, reported stronger second quarter earnings Wednesday, citing higher net interest income, better credit quality and some one-time factors.

New York Community Bancorp, based in Westbury and the largest bank holding company headquartered on Long Island by assets, said an improvement in asset quality helped fuel a 4.2 percent increase in net income for the three months ended June 30, to $123.7 million, or 28 cents a share.

Total assets were $48.6 billion on June 30, essentially flat with a year earlier.

Total nonperforming and non-covered assets -- the latter those not covered by borrowers' equity -- fell by 42 percent from the second quarter of last year, in part from the sale of a single property in June.

Net interest income, the difference between revenue generated from a bank's assets and the expenses associated with its liabilities, was $285.1 million, up $1.6 million or a fraction of 1 percent from a year earlier.

New York Community Bancorp is the parent of New York Community Bank and New York Commercial Bank, which have a total of 272 branches in New York and four other states.

Astoria Financial Corp., Lake-Success-based parent of the 87-branch Astoria Bank, and the Island's second largest bank by assets, said its net income was $31.4 million or 29 cents a share, up 41 percent from a year earlier. That included an $11.4 million or 11 cent per share gain from changes this year in New York State income tax laws, primarily as they pertain to New York City.

Net interest income for the second quarter was down slightly -- to $85.2 million from $85.8 million in last year's second quarter.

Total assets at June 30, 2015, were $15.3 billion, down 2.2 percent from Dec. 31 as the bank's loan portfolio decreased.

Suffolk Bancorp, based in Riverhead and parent of the 27-branch Suffolk County National Bank, said higher net interest income and a reduction in the provision for loan losses boosted net income by 35.7 percent to about $5.1 million, or 43 cents a share, for the second quarter.

Loans outstanding were $1.48 million at June 30, up 23.5 percent from a year earlier.

Bad loans declined to $5.5 million, or 0.37 percent of total loans, compared to $13.9 million or 1.16 percent of loans at June 30 of last year.

Net interest income rose 13.5 percent to about $18.8 million.

Total assets were $2 billion at June 30, up 13.2 percent from a year earlier.

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