Queens County Bancorp reported second-quarter earnings of 44 cents per share, up 12.8%.
The $2 billion-asset parent of Queens County Savings Bank of New York City beat analysts' consensus by a penny. Net income rose to $7.8 million, from $7.4 million a year earlier.
The company said Thursday that its sustained high loan production bodes well for its merger deal with Haven Bancorp of Westbury, N.Y, which was announced two weeks ago. The companies are to combine as a $5 billion-asset thrift, New York Community Bancorp.
Queens County said it expects to use Haven's strong deposit stream to fund its fast-growing multifamily-loan portfolio, which is currently relying on advances from the Federal Home Loan Bank of New York. These advances caused Queens County's interest expense to rise $4.6 million, to $21.7 million.
Queens County intends to reduce the balance of its FHLB advances after Haven adds its $2 billion of deposits; the deal is expected to close in the fourth quarter.