Weakening mortgage banking activity took a bite out of New York Community Bancorp's (NYCB) earnings in the third quarter.
The $45.8 billion-asset company, based in Westbury, N.Y., reported an 11% dip in profits from the same quarter a year ago. It earned $114 million, or 26 cents per shareon target with the estimates of analysts polled by Bloomberg.
New York Community's net interest income totaled $294.2 million, a 3% increase from the third quarter in 2012. A 6% decline in income from mortgage and other loans was offset by increased revenue from securities and money market investments, as well as lower interest expenses. The company's net interest margin declined 13 basis points, to 3.04%.
New York Community's noninterest income fell 38%, to $50.7 million, largely because of a 69% decline in revenue from mortgage banking. Noninterest expenses dipped 2%, to $150.3 million.
The company's credit quality showed marked improvement in the third quarter. New York Community halved its provision for losses on non-covered loans to $5 million. Net chargeoffs also fell by 50%, to $4.4 million.