Atlantic Bank of New York announced on Wednesday the results of its operations for the first quarter of 2003. Net income for the first quarter increased 33.9% to $7.5 million from the $5.6 million posted for the same period last year. Net interest income for the first quarter grew to $21.2 million, representing a $3.9 million or 22.7% increase over the $17.3 million reported for the same quarter last year. The improvement in net interest income is primarily attributable to the increase in assets resulting from the Yonkers acquisition, continued expansion of the Bank’s commercial real estate and multi-family lending businesses, and the favorable interest rate environment.
Total loans, net of unearned income, were $1,203.8 million at March 31, 2003. As of March 31, 2003 total assets stood at $3.0 billion, reflecting an increase of 8.0% over the prior quarter and an increase of 43.3% over the prior year. These increases are primarily due to the acquisition of YFC and continued growth within the Bank’s principal business lines.
Total deposits were $1,569.3 million at March 31, 2003, down $87.0 million or 5.3% from the previous quarter and up $252.1 million or 19.1% compared with the previous year. The full year deposit growth is attributable to the YFC acquisition. The first quarter decrease in deposits reflects the Bank’s continued de-emphasis of high rate time deposits and greater concentration on relationship banking and the attraction of low cost core deposits.
Atlantic Bank’s first quarter 2003 return on average total assets remained essentially constant at 1.09% compared with 1.11% for the same period last year.
Commenting on the Bank’s performance, Atlantic Bank’s President and CEO, Thomas M. O’Brien, said, “We are very pleased with the progress we have made since the Yonkers acquisition and believe our continued strategic focus on developing deep and long-term relationships with both new and existing clients is beginning to yield dividends. Our diligent expense and credit risk management practices have solidified our business foundation and we are better poised to capitalize on the profitable new growth opportunities ahead of us as market conditions improve. ”