Recent steps by New York Community Bancorp to lower its borrowing costs paid off last quarter in higher net interest income and profits.
The $48.5 billion-asset company said Wednesday that it earned $129.9 million, up roughly 9% from a year earlier.
Net interest income rose about 12% to $327.9 million, while the net interest margin climbed 26 basis points to 2.94% year over year. Those increases largely stemmed from a 125-basis-point decline in the average cost of the company’s borrowed funds. New York Community
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New York Community has long wanted a deal to push it over $50 billion of assets. While Astoria accomplishes that, it does little to diversify New York Community's geography or reduce its reliance on multifamily lending.
October 29 -
The speculation is over and a deal has been announced. How will the regulatory process play out? What will the branch network look like? These questions are more are worth asking as New York Community takes the next few months to shore up support for this $2 billion acquisition.
October 29 -
KeyCorp and New York Community Bancorp are among a number of buyers pledging to aggressively cut costs at acquired banks. There are plenty of ways to go about it, but acquirers risk cutting too deeply in the effort to appease wary investors.
November 16
However, noninterest income fell more than 32%, to $35.2 million, as mortgage banking income dropped 77%, to $4.1 million, and fee income slid almost 6%, to $7.9 million. This was partially offset by a 39% increase in income from bank-owned life insurance.
Noninterest expenses totaled $158.4 million, up roughly 1% from a year earlier. Compensation and benefits rose roughly 2%, to $89.3 million.
