Astoria reports lower profit, stays mum on nixed sale
Profits at Astoria Financial in Lake Success, N.Y., fell along with net interest income in the fourth quarter.
The $14.6 billion-asset company said Wednesday that its profit was $13.7 million in the three months, down about 15% from a year earlier. In October 2015 Astoria agreed to sell itself to New York Community Bancorp for $2 billion, but the deal was terminated Jan. 1 once it became apparent that regulatory approval would not come in time for the parties. The deadline had been Dec. 31, and the banks had warned in November that it would not be met.
In a news release, President and CEO Monte Redman praised the bank’s growth in core deposits and de-risking of its loan portfolio, but he did not address the terminated merger with New York Community. Management was scheduled to host a conference call Thursday.
Astoria’s net interest income fell more than 3% from a year earlier to $81.6 million as income from its multifamily and commercial real estate mortgage loans fell almost 4% to $45.7 million.
The company recorded a loan-loss release of $2 million, versus a release of $4.3 million a year earlier.
Noninterest income rose more than 10% to $14.9 million, primarily from higher mortgage banking income.
Noninterest expense fell roughly 4% to $71.2 million as compensation and benefits costs fell 6%, to $38.1 million.