What happened

Shares of New York Community Bancorp (NYCB) traded nearly 10% higher as of 12:15 p.m. EDT after the bank reported earnings results for the second quarter of 2021.

So what

New York Community Bancorp, a bank with assets of nearly $58 billion that specializes in multifamily lending, generated diluted earnings per share (EPS) of $0.30 on total revenue of $347 million. EPS hit analysts' average estimate on the number, while revenue beat by nearly 8%.

EPS would have been $0.33 for the quarter if you exclude one-time, non-recurring tax charges and $10 million of expenses related to New York Community Bancorp's planned acquisition of Flagstar Bancorp (FBC), which will bring the combined bank to $87 billion in assets.

Total revenue climbed 5% from the first quarter, while loans grew about 1%. The bank grew its somewhat new commercial and industrial loan portfolio by 57% from the first quarter of the year. Total expenses would have been down, excluding the merger costs.

Blue line with arrow pointing upward, over blue background.

Image source: Getty Images.

Now what

New York Community Bancorp's CEO Thomas Cangemi in a statement called the quarter one of "the Company's best quarterly operating performances in over 15 years."

The bank continues to make progress on shifting from a thrift model with higher-cost funding and fixed-rate multifamily loans to a more traditional commercial banking model. The acquisition of Flagstar will help with this monumental effort. That, coupled with some good momentum in the first quarter, bodes well for the bank.