State Bank of Long Island reports profit fall

Long Island Business News, Oct 29, 2008 by Laura Glasser

New Hyde Park-based State Bancorp said Wednesday its third- quarter profit fell 35.5 percent on a year-over-year basis because of an increase in its provision for loan losses.

The State Bank of Long Island parent reported profit of $2 million, or 14 cents per share, for the period ended Sept. 30, down from a profit of $3.1 million, or 22 cents per share, in the same quarter last year.

The one analyst polled by Thomson Financial had expected earnings of 17 cents per share.

The bank put aside $3.7 million in the quarter to cover loan and lease losses, up from $652,500 in the year-ago period.

Without the provision for loan losses, interest income would have risen just over 3 percent. But including the money the bank set aside, interest income fell 18 percent to $11.7 million.

"Our third quarter financial performance reflects the continued execution of our business plan, growth strategies and operational efficiencies as well as the significant challenges brought about by the slowing economy and the resulting business pressures experienced by some of our clients," State Bank's chief executive Tom O'Brien said in a statement.

Shares of State Bancorp (Nasdaq: STBC) gained 5.38 percent to $12.33 in afternoon trading.