Astoria Financial Corp. originated $346 million in commercial and multifamily mortgage loans in 1Q13, which the company said shows its strategy of repositioning its balance sheet is working.
These loans now make up 26% of the company’s loan portfolio, up from 24%. The pipeline of these loans in progress is now $707 million. Astoria re-entered this line of business in late 2011, after abandoning it during the housing bust.
Net income for 1Q13 is $13.9 million, up from
Monte N. Redman, president and CEO, said the results reflects Astoria’s strategy to significantly increase not just CRE loans but core deposits as well, both of which “should contribute to enhancing profitability and improving the value of our franchise.”
Astoria’s residential mortgage portfolio decreased $514 million between Dec. 31 and March 31 to $9.2 billion, as low rates on 30-year fixed-rate mortgages continue to drive prepayments and make the company’s hybrid adjustable-rate mortgage product less attractive.
It only originated $234 million of residential mortgages for 1Q13, just over one-quarter of the $880 million it originated in 1Q12. The newly originated loans have a 61% loan-to-value ratio and an average loan amount of $756,000.
As for the CRE/multifamily originations, the 1Q13 total was flat relative to 1Q12’s $344 million. Its 1Q13 volume’s LTV is 52%, the debt service coverage ratio is 1.82% and the average balance is $2.8 million.
