Dallas, Texas 07/24/2015 (FINANCIALSTRENDS) – Higher noninterest income from the sale of repossessed real estate and a successful recovery of funds initially set to cover loan losses propelled New York Community Bancorp, Inc. (NYSE:NYCB) to an impressive second-quarter profit. The holding company posted a revenue of $347 million consequently beating consensus estimates of $332.1 million
Noninterest Income Up By 17.7%
New York Community Bancorp, Inc. (NYSE:NYCB) posted a second-quarter profit of $123.7 million translating to an earnings per share of 28 cents. Adjusted amortization costs came in at 30 cents a share. The company’s revenue was up against on a decline in operating expenses as well as low net loan loss provisions. Revenues also received a boost from the sale of a building owned by the bank for $7.8 million
Non-interest income rose by 17.7%, or $9.3 million as the bank’s income received a boost from a loss-sharing agreement with the FDIC. New York Community Bancorp, Inc. (NYSE:NYCB) asset portfolio was up thanks to higher prepayment fees even though lower interest rates continued to weigh in on its net interest margin. Higher occupancy costs and higher compensation pushed the bank’s operating expenditures even higher consequently rising by 2.8% or $4.1 million.
Despite experiencing higher operating expenses New York Community Bancorp, Inc. (NYSE:NYCB) maintained an even efficiency ratio that came in at 43.4%. Loan loss provisions for the quarter rose to $2.2 million from $188,000 last year.
New York Community Bancorp, Inc. (NYSE:NYCB) plans to sell certain loans through participation with the intention of maintaining a strong balance sheet and also keeping assets below the current SIFI threshold. Loan sales have already totaled $1.6 billion made of family and CRE loans of $1.1 billion
The company’s board of directors buoyed by the impressive showing in the quarter has declared a 46th consecutive quarterly cash dividend of $0.25 a share. The dividend is to be paid to shareholders on record as of August 6th on August 18, 2015.