New York Community Bancorp (NYSE: NYCB) reported Q3 EPS of $0.23, in-line with the analyst estimate of $0.23.

Commenting on the Company's third quarter performance, President and Chief Executive Officer Joseph R. Ficalora stated: "We are very pleased with our strong third quarter results, especially given the uneven economic recovery and the lingering effects from the COVID-19 pandemic over the past quarter. We had solid net income and EPS growth during the current third quarter, driven by strong loan growth and double-digit net interest margin expansion resulting in continued net interest income growth. At the same time, operating expenses remained well-contained leading to higher levels of pre-provision net revenues.

"More importantly, our loan deferrals declined significantly. From June 30, 2020 to October 22nd, $3.1 billion of loan deferrals were eligible to come off of their deferral period. As of October 22nd, 95% of these deferrals returned to payment status. As of this date, deferrals represented 7.3% of total loans compared to 14.4% as of June 30, 2020. Going forward, an additional $3.1 billion of deferrals are scheduled to come off of their deferral period, the majority of which are eligible to do so during November. Given October's strong payment performance, we remain confident about deferral payment trends through the remainder of the year.

"Our asset quality metrics remain very strong and rank among the best in the industry. Our NPAs declined on a linked quarter basis and we recorded a net recovery during the quarter. As always, we will continue to closely monitor our entire loan portfolio for any signs of stress.

"Our net interest margin increased 11 basis points to 2.29% during the third quarter, compared to the second quarter level. Excluding the impact from prepayment income, the margin also increased 11 basis points to 2.20%. The continued improvement was the result of lower funding costs as our maturing certificates of deposits repriced significantly lower during the quarter, while the cost of our borrowings also declined. At the same time, loan yields were relatively stable, down only five basis points on a sequential basis.

"On the lending side, our loan portfolio grew, both on a year-to-date and sequential basis. Overall, loans grew 3% annualized on a year-to-date basis and 5% on an annualized basis compared to the prior quarter. The linked-quarter growth was driven by ongoing growth in our core multi-family portfolio and a rebound in our specialty finance portfolio. We ended the third quarter with a solid loan pipeline, which bodes positively for fourth quarter loan growth.

"Finally, reflecting our earnings growth, capital position, and strong asset quality metrics, yesterday our Board of Directors declared a quarterly cash dividend of $0.17 per common share."

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