New York Community Bancorp Q3 Shows Lots of Upsidehttp://www.fool.com/investing/general/2012/10/25/new-york-community-bancorp-q3-shows-lots-of-upside.aspx Amanda Alix
October 25, 2012
Earnings season for U.S. banks has focused more than usual on the issue of net interest margin, which is being painfully compressed by falling interest rates spurred by the Fed's QE3 program.
Like many other regional banks, New York Community Bancorp (NYSE: NYB ) has also noted this pressure in its Q3 earnings report. However, increased loan activity and the improving quality of those loans have helped boost the bank's bottom line.
Refi boom has been sweet for NYB
The quality of the loans being written is improving, too. Net charge-offs fell to 0.03% in Q3, continuing a downward trend from 0.05% and 0.04% in sequential quarters. Asset quality improved as well. Non-performing, non-covered loans represented just 0.82% of all loans in this past quarter, compared with 1.44% one year ago.
NIM pressure is making investors nervous