New York Community Bancorp (NYCB) in Westbury reported lower quarterly earnings as mortgage-related income plummeted.
The $47.6 billion-asset company's first-quarter earnings fell 3% from a year earlier, to $115.3 million, or 26 cents a share.
Noninterest income fell 51%, to $37 million. Mortgage-related revenue fell 44%, to $14.6 million.
It was a noisy quarter for New York Community. The company recorded an $11.7 million indemnification expense tied to the Federal Deposit Insurance Corp., compared to a $3.6 million gain a year earlier. The company offset part of that cost with a $3.9 million gain from selling shares of Visa stock.
Gains from other securities fell 71%, to $4.9.
Net interest income rose 3%, to $284 million. Total loans also rose 3%, to $33.6 billion. Deposits rose 4%, to $267.5 million. The net interest margin compressed 20 basis points, to 2.72%.
"While I often point to loan growth as a highlight of our performance, I'm especially pleased to add deposit growth to the list," Joseph Ficalora, the company's president and chief executive, said in a press release. He noted that New York Community had launched a deposit gathering campaign earlier this year.
Noninterest expense fell 6%, to $146.3 million, with the biggest decrease tied to compensation and benefits.
