Profit fell at New York Community Bancorp (NYCB) in Westbury, N.Y, as mortgage banking revenue dropped sharply last quarter.
The $44.2 billion-asset company reported Wednesday a second-quarter profit of $122.5 million, down 7% from a year earlier. Earnings per share were 28 cents, 2 cents higher than the average estimate of analysts polled by Bloomberg.
A 45% decline in noninterest income, to $53.7 million, weighed down profits. Mortgage banking income fell 60%, to $23.2 million, as rising interest rates crimped residential mortgage origination, the company said.
Net interest income rose 1%, to $299.9 million, despite reduction in net interest margin of 15 basis points, to 3.15%. Interest-earning assets rose 6%, to $38 billion.
New York Community benefited from improved credit quality, as its provision for loan losses fell by $10 million, to $5 million, and net chargeoffs fell more than $9 million, to $4.7 million.