Dime Community Bancshares Inc. in Brooklyn, N.Y., said its fourth-quarter earnings plummeted 34% from a year earlier, to $6 million.
Diluted earnings per share sank 32%, to 17 cents, which missed the average estimate of analysts by a penny, according to Thomson Financial.
The $3.2 billion-asset Dime reported Friday that its full-year net income fell 16%, to $30.6 million. Diluted earnings per share dropped 15%, to 87 cents, beating the average estimate of analysts by 2 cents.
The company attributed the fourth-quarter earnings decline to a net interest margin drop caused by increased deposit costs and a drop in prepayment penalty income from mortgages.
Fourth-quarter prepayment penalties fell 29%, to $561,000, and the margin dropped 57 basis points, to 2.34%.
Net interest income sank 20% for the quarter, to $17.4 million, and 16% for the full year, to $77.2 million.
