New York Community Bancorp, Long Island's largest banking company, cited lower loan-loss provisions as it reported a 5 percent year-over-year increase in third quarter earnings.
The Westbury-based corporate parent of New York Community Bank and New York Commercial Bank, with branches in five states, said it earned $120.3 million or 27 cents a share in the three months ended Sept. 30, up from $114.2 million or 26 cents a share in the year-earlier period.
President and CEO Joseph R. Ficalora said in a statement that the results "served to verify our fundamental strengths -- our solid multifamily lending niche, the exceptional quality of our assets, and our hallmark efficiency."
Net interest income, the difference between the revenue generated from a bank's assets and the expenses associated with liabilities, fell by $5.2 million or 1.8 percent year over year, to $289 million.
Net interest margin, a measure of the difference between the interest a bank earns on assets such as loans and the interest it pays out to depositors, fell 35 basis points year over year, to 2.69 percent. But New York Community said both indicators rose from the previous quarter.
New York Community said no provision for loan losses was booked in the third quarter for "noncovered" loans, compared with a $5 million provision a year earlier.
It also reduced its allowance for losses on loans covered by Federal Deposit Insurance Corp. loss-sharing agreements by $3.9 million. That amount was partly offset by an FDIC indemnification expense of $3.2 million, which reduced noninterest income.
Noninterest income was $41.3 million in the third quarter, down 18.6 percent from a year earlier.
Total assets at Sept. 30 were $48.7 billion, up from $46.7 billion at Dec. 31.