Citing healthy quality of credit, solid profitability, growing net interest income and an attractive dividend, FBR says they see New York Community Bancorp (NYSE:NYB) continuing to outperform.
FBR says, "In 4Q10, investors continued to wait for loan growth, although profitability remains strong. Runoff of covered loans more than offset a $103 million increase (+40 bps) in loans held for investment, but management emphasized improving growth prospects. Substantially more of its $1.1 billion loans held for investment pipeline is new business, rather than refinance transactions. A whopping 25 bps increase in net interest margin drove stronger-than-expected net interest income, which largely offset a drop in mortgage banking income. We view this trade-off favorably, as we consider net interest income a higher quality source of earnings than mortgage banking. There was some doubt from investors about whether the wider NIM is sustainable; we believe it is. We reiterate our 2011 and 2012 operating EPS estimates of $1.40 and $1.60. NYB's strong credit quality, growing net interest income, strong profitability, and attractive dividend support our rating."
FBR Capital reiterates an "Outperform" rating on New York Community Bancorp (NYB), which closed Thursday at $18.51, up $0.36, or 1.98 percent. FBR has a price target of $20 on NYB.
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