Astoria Financial (AF) in Lake Success, N.Y., boosted its quarterly profit nearly 40% by reining in costs.
The $16.2 billion-asset lender announced Wednesday that it earned $13.9 million, or 14 cents a share, in the first quarter, 29% more than in the first quarter of 2012 and 1 cent more than analysts polled by Bloomberg expected.
Astoria cut its quarterly expenses by 13%, to $71.2 million. The company slashed compensation and benefit costs by more than $10 million, to $31.2 million. Astoria implemented a cost-control initiative in the first quarter of 2012 that has lowered expenses in subsequent quarters, it said in its earnings release.
Net interest income fell 5%, to $84 million, as its net interest margin contracted by 1 basis point, to 2.19%. Provisions for loan losses fell by 9%, to $9.1 million.
Astoria, which has historically been a single-family lender, originated $346 million in commercial and multifamily loans in the quarter as it continues its efforts to
Noninterest income fell 7%, to $13.3 million, as fees and gains on loan sales declined. But a 250% rise in mortgage-banking income, to $4.8 million, partially offset those declines.
Earlier this month Astoria announced that would sell preferred shares to
