Astoria Federal Financial Corp., one of the nation's largest thrifts, posted a net profit of $11.8 million in the fourth quarter, almost half of what it earned in the same period in 2010.
A portfolio lender of sorts, Astoria blamed its weaker performance on a decline in both its residential and multifamily holdings and cited “elevated levels of mortgage prepayment activity” due to government efforts to keep interest rates low.
“The decline in the multi-family/CRE loan portfolio was due to the absence of lending in this market during much of 2011,” the company said but added that it is once again cranking out new apartment loans.
The company is based in Lake Success, N.Y., and lends in and around the strong New York City rental market.
Astoria reentered the multifamily space in the third quarter and said the thrift is “demonstrating solid growth as evidenced by the fourth quarter” production and its yearend loan pipeline.
At yearend Astoria's residential portfolio totaled $10.6 billion compared to $10.9 billion 12 months earlier.
The company is forecasting $3.5 billion of residential fundings this year, and $1.5 billion in multifamily.
It controls $333 million of nonperforming loans or 1.96% of assets. Its NPLs fell compared to Sept. 30.
