Not all mortgage lenders saw loan production fall off the table in the first quarter. Astoria Financial Corp., Lake Success, N.Y. funded $707 million of residential loans for its portfolio in 1Q, a 10% jump from 4Q.
The Long Island-based thrift also reported that the average loan-to-value ratio of one-to-four family mortgages (originated to be held in portfolio) was 60% in 1Q. The average size of these loans was $727,000.
However, its residential holdings fell to $10.6 billion at the end of March, compared to $10.9 billion at yearend. Its combined multifamily/commercial real estate holdings also dipped: $2.7 billion at March 31, compared to $3 billion at December 31.
Commenting on the decrease in these balance holdings, company chairman George Engelke noted that, "As anticipated, the pace of the decline in the loan portfolio and the balance sheet has slowed as the level of loan prepayment activity has fallen. We expect that this trend will continue which should mean less shrinkage in the second quarter and growth expected to resume in the second half of the year."
Overall, Astoria earned $27.4 million in 1Q, a 112% and 107% jump from 4Q, and 1Q 2010, respectively.
The lender also reported that early stage loan delinquencies (30-89 days past due) decreased to $217.2 million, a 19% decline from March 31, 2010 and 1% from the previous quarter. Non-performing loans decreased to $373.8 million, an 11% decline from March 31, 2010 and 4% from the previous quarter.
