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UPDATE 1-Astoria earnings fall on rising loan defaults

Wed Apr 22, 2009 6:46pm EDT

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NEW YORK, April 22 (Reuters) - Astoria Financial Corp (AF.N) which runs a large New York thrift, said on Wednesday first-quarter profit fell 70 percent, hurt by a rise in loan delinquencies.

Net income for the parent of Astoria Federal Savings and Loan fell to $8.8 million, or 10 cents a share, from $28.9 million, or 32 cents per share, a year earlier.

Net interest income for the quarter rose 38 percent to $111.7 million from the year-earlier period.

Operating earnings per share came to 14 cents, while analysts polled by Reuters Estimates on average expected the Lake Success, N.Y., lender to earn 25 cents per share from operations.

Astoria's loan portfolio shrank to $16.4 billion as of March 31, down $290.6 million from the prior quarter.

In a statement, Chief Executive George Engelke said, "As anticipated, higher unemployment and continued weakness in the national housing market resulted in increases in loan delinquencies, foreclosures, credit costs and loan loss provision."

Shares of Astoria closed Wednesday down 3.56 percent, or 33 cents, $8.93. The lender released results after U.S. markets closed. (Reporting by Phil Wahba, editing by Leslie Gevirtz)



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