StockCall Insight into New York Community Bancorp and First Niagara: Savings and Loans Industry Continues to Recover

LONDON, February 15, 2013 /PRNewswire/ --

The U.S. savings and loans industry was one of the biggest casualties of the subprime mortgage crisis,with Washington Mutual,the biggest savings and loans bank filing for bankruptcy. The industry suffered due to its exposure to subprime mortgages. The crisis also led to a drop in deposits at savings and loans banks. However,the industry is starting to show signs of stability,and savings and loans banks such as New York Community Bancorp Inc. (NYSE: NYCB) and First Niagara Financial Group Inc. (NASDAQ: FNFG) can expect an improved operating environment. StockCall has issued technical analysis and charting reports on New York Community Bancorp and First Niagara Financial Group Inc. Download these free reports now at

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Fall in Deposits and Record Low Interest Rates

Following the subprime crisis, the savings and loans industry saw a drop in deposits as customers moved their money into bigger commercial banks. As a result, savings and loans banks saw a drop in money that they could lend.

Record low-interest rates in the U.S. have created margin pressure, which is also hurting savings and loans banks. With the Federal Reserve expected to keep interest rates at record levels for a while, banks will continue to face margin pressure. On the positive side, low-interest rates have boosted mortgage lending activity. This is likely to continue to benefit the savings and loans industry.

M&A Activity and Improving Financial Position  

A major trend that has emerged in the savings and loans industry is consolidation. This trend is expected to continue. Consolidation is expected to benefit the industry.

Savings and loans banks have seen a significant improvement in their financial positions in the last two years. In fact, the banks that have survived the subprime mortgage crisis have emerged stronger, with robust balance sheets.

New York Community Bancorp Inc. Reports Strong Q4 Results

New York Community Bancorp Inc. last month reported strong financial results for the fourth quarter of 2012. The company's GAAP earnings for the quarter were $122.8 million. For the full year 2012, the company reported earnings of $501.1 million on a GAAP basis. Download the free research on New York Community Bancorp Inc. today by registering at

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Net interest income for the quarter was $290 million, while net interest margin for the quarter was 3.15%. The company's mortgage banking income more than doubled in 2012 from 2011. Mortgage banking income in the fourth quarter was $32.6 million, up 31.9% over the same period in the previous year.

Joseph R. Ficalora, President and CEO of New York Community Bancorp Inc., said that the company's 2012 performance underscored the merits of complementing its traditional multi-family lending in New York City with nationwide origination of one-to-four family loans for sale.

First Niagara Financial Group Inc.'s Q4 Results Reflect Strong Core Business Fundamentals  

Last month, First Niagara Financial Group Inc. also reported its financial results for the fourth quarter and full year 2012. The company's results reflected strong core business fundamentals and core customer acquisition across its regional banking footprint. Sign up and have access to our free report on First Niagara Financial Group Inc. at

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John R. Koelmel, President and CEO of First Niagara Financial Group Inc., said that the company finished 2012 with its team and franchise in a very solid position.

The company reported non-GAAP operating net income of $67.8 million for the fourth quarter.

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