New York Community Bancorp in Westbury reported higher quarterly profit, though it continued to sell loans to stay below $50 billion in assets.
The company said in a press release Wednesday that its first-quarter earnings rose 3% from a year earlier, to $119.3 million. The company sold more than $553 million in loans, slightly reducing its assets from Dec. 31, to $48.3 billion.
New York Community has been looking to keep its assets below the $50 billion-asset threshold that would eventually earn it status as a systemically important financial institution, or SIFI. The company has also been looking for a meaningful acquisition that would push it above that mark.
An increase in prepayment penalty income helped New York Community's net interest income rise 3%, to $292.8 million. Its net interest margin compressed by 4 basis points, to 2.68%. The company recovered $766,000 from previously charged-off loans, compared to net chargeoff of $2.6 million a year earlier.
Noninterest income jumped 40%, to $52.2 million. The first quarter of 2014 included a $11.7 million loss tied to Federal Deposit Insurance Corp. indemnification. Mortgage-banking income rose 26%, and loan sales also contributed to the increase. Noninterest expense rose 7%, to $156.8 million, on higher compensation expenses.
First Republic Bank in the first quarter became the first bank to pass the $50 billion-asset threshold since it was set, though it should take several more quarters before the San Francisco company officially reaches SIFI status.