Broken Clouds 41° Good Evening
Broken Clouds 41° Good Evening

NYCB reports 9 percent net income drop, keeps under SIFI threshold

New York Community Bancorp in Westbury saw shares

New York Community Bancorp in Westbury saw shares drop 4 percent Wednesday after it reported net income fell 9 percent in the second quarter. Photo Credit: Audrey C. Tiernan

Westbury-based New York Community Bancorp, the largest bank headquartered on Long Island, reported Wednesday that second-quarter net income dropped to $115.3 million, a 9 percent decline from the same period a year ago.

“Our loan originations increased, but overall balance sheet growth was tempered by loan sales participations and prepayments, as well as our continuing desire to manage the balance sheet below the current $50 billion SIFI threshold,” said Joseph R. Ficalora, president and chief executive of NYCB.

NYCB is trying to avoid being designated a “systemically important financial institution,” or SIFI. A bank is designated as a SIFI if its failure would cause significant disruption to the economy.

SIFI designation means a bank would incur additional compliance expenses.

NYCB reported assets of $48.3 billion on June 30, the end of the second quarter.

NYCB shares fell 4 percent on Wednesday to $12.77. Its shares are down 13.5 percent in the last year.

Separately, Uniondale-based Flushing Financial reported second-quarter net income of $12.7 million, a 58 percent drop that it attributed to a $34 million net gain from the sale of buildings a year earlier.

Core net income, which excludes some items, including the sale of the buildings, rose 19 percent during the same period.

Flushing shares fell 1 percent to $28.01 on Wednesday. Its shares are up 33 percent in the last year.

Also, Bridgehampton-based Bridge Bancorp said after the market closed Wednesday that its net income dipped slightly to $8.84 million in its second quarter, from $8.85 million a year earlier. The parent company of Bridgehampton National Bank said it had assets of $4.2 billion as of June 30, up 13 percent from the same period a year ago.

Shares of Bridge were unchanged at $32.90 in Wednesday after-hours trading. They are up nearly 10 percent in the past 12 months.

More news

Sorry to interrupt...

Your first 5 are free

Access to Newsday is free for Optimum customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.