Atlantic Bank of New York announced the results of its operations for the second quarter and first six months of 2003. Net income for the quarter was $7.0 million, which was $.3 million or 4.7% lower than the $7.3 million posted for the same period last year. Net income for the year to date increased to $14.5 million reflecting a $1.6 million or 12.4% increase over the $12.9 million reported for the comparable period of the prior year.
Net interest income for the quarter ended June 30, 2003 was $21.5 million, a $1.0 million or 4.6% decrease compared with the comparable quarter of 2002. For the six months ended June 30, 2003, net interest income was $42.7 million, a $2.9 million or 7.3% increase over the comparable prior year six month period. The net interest margin for the quarter and six month period declined to 3.05% and 3.19% respectively, reflecting continued margin compression compared with the same periods last year.
Non-interest income for the second quarter increased to $6.7 million, a $.9 million or 15.1% gain compared with the $5.8 million reported for the same period last year. Non-interest income for the year to date increased to $12.8 million, representing a $2.0 million or 18.0% increase compared with $10.8 million posted the first half of 2002.
Non-Interest expense for the second quarter was $15.6 million, an increase of $.2 million over the comparable quarter last year.
Total loans, net of unearned income, were $1,216.6 million at June 30, 2003, compared with $1,203.8 million at March 31, 2003 and $1,292.0 million at June 30, 2002. The increase in loans during the second quarter is attributable to growth in the Bank’s Commercial Real Estate portfolio, partially offset by strategic management of runoff in fixed rate Residential Mortgage loans as refinancing activity continued.
As of June 30, 2003, total assets stood at $3.1 billion, reflecting an increase of $76.5 million or 2.6% over the prior quarter. Total deposits grew to $1,653.2 million at June 30, 2003, an increase of $83.9 million or 5.3% over the previous quarter. The increase is due to the Bank’s continued emphasis on relationship banking and the successful attraction of lower cost core deposits across all its business lines.
Atlantic Bank’s return on average total assets for the second quarter and year to date declined to .92% and 1.00% respectively from 1.22% and 1.17% for the same periods last year.
Return on average stockholder’s equity was 12.99% for the quarter and 13.85% for the six months ended June 30, 2003. Non-performing loans declined from $41.2 million or 3.19% of total loans, net, as of June 30, 2002 to $10.1 million or .83% of total loans, net, as of the current quarter.
The Bank also announced that it had signed leases for two new branch offices in the Manhattan market. The opening of both branches is scheduled for early fourth quarter, 2003. The two new Manhattan branch facilities will be located at 400 Madison Avenue and 936 Third Avenue.
Commenting on Atlantic Bank’s financial performance, Thomas M. O’Brien, President and CEO stated, “Our consistent emphasis on a focused and relationship-building approach to the market, together with our diligent credit management practices, continue to serve us well. Despite the challenging economic and historically low interest rate environment in today’s market, the execution of our strategic plan has helped us build a solid foundation from which to continue to grow. We are pleased with our progress and excited about new opportunities to grow our business in our expanded market areas, including our two new Manhattan locations slated for opening later this year.”