-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Wixli7bMJB6Pny9MB0q3+KlORUeQ9JnrUB+F/YISKqf/9GJY04I0IZ9gcdoYE61O Jn2knlTOjGHQo400kxF6Fg== 0000891092-03-002795.txt : 20031017 0000891092-03-002795.hdr.sgml : 20031017 20031016175927 ACCESSION NUMBER: 0000891092-03-002795 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031016 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031017 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASTORIA FINANCIAL CORP CENTRAL INDEX KEY: 0000910322 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 113170868 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11967 FILM NUMBER: 03944553 BUSINESS ADDRESS: STREET 1: ONE ASTORIA FEDERAL PLAZA CITY: LAKE SUCCESS STATE: NY ZIP: 11042-1085 BUSINESS PHONE: 5163273000 MAIL ADDRESS: STREET 1: ONE ASTORIA FEDERAL PLAZA CITY: LAKE SUCCESS STATE: NY ZIP: 11042-1085 8-K 1 e15908_8k.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K CURRENT REPORT ---------- Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): October 16, 2003 ASTORIA FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 0-22228 11-3170868 - ------------------------------- --------------------- ------------------- (State or other jurisdiction of (Commission File No.) (IRS Employer incorporation or organization) Identification No.) ONE ASTORIA FEDERAL PLAZA, LAKE SUCCESS, NEW YORK 11042-1085 ------------------------------------------------------------ (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (516) 327-3000 NOT APPLICABLE (Former name or former address, if changed since last report) 1 ITEMS 1 THROUGH 6, 8, 9, 10, AND 11. NOT APPLICABLE. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following Exhibits are furnished as part of this report: 99.1 Press release dated October 16, 2003 which, among other things, highlights the Company's financial results for the third quarter and nine months ended September 30, 2003. ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 16, 2003, Astoria Financial Corporation issued a press release reporting financial results for the third quarter and nine months ended September 30, 2003. The full text of the earnings release is included herein as Exhibit 99.1. The press release provides certain information which may be considered non-GAAP financial information. These items may include tangible stockholders' equity, book value and tangible book value and related calculations. The information provided pursuant hereto shall not be deemed incorporated by reference by any general statement incorporating by reference this Form 8-K into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and shall not otherwise be deemed filed under such Acts. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ASTORIA FINANCIAL CORPORATION /S/ Peter J. Cunningham ------------------------------ Peter J. Cunningham First Vice President and Director of Investor Relations Dated: October 16, 2003 EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99.1 Press release dated October 16, 2003 which, among other things, highlights the Company's financial results for the third quarter ended September 30, 2003. 3 EX-99.1 3 e15908ex99_1.txt PRESS RELEASE Exhibit 99.1 Astoria Financial Corporation Announces Third Quarter EPS of $0.53 Quarterly Cash Dividend of $0.22 Per Common Share Declared LAKE SUCCESS, N.Y., Oct. 16 /PRNewswire-FirstCall/ -- Astoria Financial Corporation (NYSE: AF) ("Astoria"), the holding company for Astoria Federal Savings and Loan Association ("Astoria Federal"), today reported net income of $41.6 million, or $0.53 diluted earnings per common share, for the quarter ended September 30, 2003, compared to $62.2 million, or $0.72 diluted earnings per common share, for the quarter ended September 30, 2002. For the nine months ended September 30, 2003, net income totaled $148.9 million, or $1.85 diluted earnings per common share, compared to net income of $187.4 million, or $2.13 diluted earnings per common share for the comparable 2002 period. For the 2003 third quarter, returns on average equity and average assets were 11.35% and 0.74%, respectively, compared to 15.72% and 1.14%, respectively, for the comparable 2002 period. For the nine months ended September 30, 2003, returns on average equity and average assets were 13.13% and 0.88%, respectively, compared to 15.92% and 1.13%, respectively, for the comparable 2002 period. Commenting on the third quarter results, George L. Engelke, Jr., Chairman, President and Chief Executive Officer of Astoria, said, "As anticipated, third quarter results were negatively impacted by the continued very high level of cash flow from mortgage refinance activity and accelerated premium amortization. However, based on lower mortgage refinance applications received in August, September and into October, refinance lending activity and related cash flows should slow in the fourth quarter." Board Declares Quarterly Cash Dividend The Board of Directors of the Company, at their October 15, 2003 meeting, declared a quarterly cash dividend of $0.22 per common share. The dividend is payable on December 1, 2003 to shareholders of record as of November 17, 2003. This is the thirty-fourth consecutive quarterly cash dividend declared by the Company. The annualized dividend yield, based on the share price as of October 15, 2003, is 2.69%. Ninth Stock Repurchase Program Continues During the third quarter, Astoria repurchased 1.3 million shares of its common stock at an average cost of $29.82 per share. For the nine months ended September 30, 2003, 6.0 million shares were repurchased at an average cost of $26.34 per share. To date, under the ninth program that commenced in November 2002, Astoria has repurchased 6.4 million shares of the 10 million shares authorized. Redemption of 12% Preferred Stock, Series B On October 1, 2003, the Company completed the redemption of all 2,000,000 outstanding shares of its 12% Noncumulative Perpetual Preferred Stock, Series B (the "Preferred Shares"), at a redemption price of $27.25 per share, plus $1.00 in accrued and unpaid dividends, for an aggregate redemption price of $28.25 per Preferred Share (the "Redemption Price"). Balance Sheet Summary Key balance sheet highlights outlining the cumulative effect of the Company's balance sheet repositioning since December 31, 1999 follow: (Dollars in millions) Change 12/31/99 12/31/00 12/31/01 12/31/02 9/30/03 12/31/99-9/30/03 Assets $22,697 $22,337 $22,668 $21,698 $22,069 - 3% Loans $10,286 $11,422 $12,167 $12,059 $12,311 + 20% MBS $ 9,287 $ 7,875 $ 7,074 $ 7,380 $ 8,155 - 12% Deposits $ 9,555 $10,072 $10,904 $11,067 $11,213 + 17% Core Deposits* $ 4,625 $ 4,922 $ 5,743 $ 5,914 $ 5,727 + 24% Checking $ 878 $ 1,005 $ 1,200 $ 1,383 $ 1,480 + 69% Borrowings $11,524 $10,320 $ 9,822 $ 8,821 $ 9,074 - 21% * Excludes time deposits Mortgage loan production for the quarter ended September 30, 2003, fueled by high refinance activity, totaled $2.3 billion, compared to $1.3 billion for the comparable 2002 period. For the nine months ended September 30, 2003, loan production increased 46% to $5.8 billion from $4.0 billion for the comparable 2002 period. Included in the 2003 third quarter and nine month loan production were one-to-four family loan originations totaling $1.7 billion and $4.6 billion, respectively, predominantly 3/1 and 5/1 adjustable rate mortgage ("ARM") loans. Mortgage loan prepayments for the quarter and nine months ended September 30, 2003 totaled $1.5 billion and $4.3 billion, respectively, compared to $1.2 billion and $3.0 billion for the respective 2002 periods. For the quarter and nine months ended September 30, 2003, multifamily and commercial real estate ("CRE") loan originations increased to $556.6 million and $1.2 billion, respectively, up 77% and 58%, respectively, over the 2002 comparable periods. At September 30, 2003, the combined multifamily and CRE loan portfolios totaled $2.9 billion, up 33% from September 30, 2002, representing 24% of total loans. The average loan-to-value ratio of the multifamily and CRE loan portfolio is less than 65%, based on current principal balance and original appraised value. The average loan outstanding remains under $1 million. The Company's strong multifamily and CRE lending efforts are reflected in the growth of this portfolio since 1999: (Dollars in Change millions) 12/31/99 12/31/00 12/31/01 12/31/02 9/30/03 12/31/99-9/30/03 Multifamily/ CRE Loans $1,014 $1,282 $1,693 $2,345 $2,916 +188% % of Total Loans 10% 11% 14% 20% 24% +140% Commenting on these solid lending results, Mr. Engelke said, "Our multifamily and CRE lending continues to exhibit strong growth. We have achieved great success in building a high quality multifamily and CRE loan portfolio and expect to continue to produce strong, double-digit growth in the future." At September 30, 2003, non-performing loans totaled $33.3 million, or 0.15% of total assets compared to $36.0 million, or 0.16% of total assets, at June 30, 2003 and $34.5 million, or 0.16% of total assets, at December 31, 2002. Net charge-offs for the quarter and nine months ended September 30, 2003 were $185,000 and $341,000, respectively. The ratio of the allowance for loan losses to non-performing loans was 250% at September 30, 2003. Mortgage-backed securities ("MBS") decreased by $442.2 million from June 30, 2003 and totaled $8.2 billion at September 30, 2003. The decrease was attributable to repayments of $2.5 billion, offset by purchases of $2.1 billion. Deposits were down slightly from June 30, 2003 and totaled $11.2 billion at September 30, 2003. Core deposits, which exclude certificate of deposit accounts, totaled $5.7 billion, representing 51% of total deposits at September 30, 2003. Borrowings at September 30, 2003 totaled $9.1 billion. The following table details future borrowing maturities and weighted average rates: Contractual Total Amount Weighted Maturity Maturing Average Rate 4Q03(1) $ 1.7 Billion 3.41% 1Q04 $ 2.8 Billion 4.97% 2Q04 $ 500 Million 5.80% 3Q04 $ -- 0 -- -- Total next 12 months $ 5.0 Billion 4.53% Beyond 3Q04(2) $ 4.1 Billion 5.01% Total $ 9.1 Billion 4.75% We entered into forward borrowing commitments for $900 million in the third quarter, the effect of which will be to extend borrowings with a weighted average rate of 5.29%, scheduled to mature in the 2003 fourth quarter, for an average term of 2.7 years, with a weighted average rate of 2.63%. The remaining high cost borrowings scheduled to mature within the next twelve months are expected to either be repaid or repriced at substantially lower rates which should result in a significant decline in the cost of funds. In addition to the above borrowing maturities, over the next twelve months approximately $2.7 billion of CDs with an average rate of 2.55% will mature. During the third quarter of 2003, $780.7 million of CDs, with an average rate of 2.01% and an average maturity of 12 months, matured and $731.5 million of CDs were issued or repriced with an average rate of 1.60% and an average maturity of 15 months. The following table details retail CDs maturing over the next twelve months along with weighted average rates: CDs Maturing Amount Weighted Average Rate 4Q03 $ 778 Million 2.45% 1Q04 $ 943 Million 2.45% 2Q04 $ 581 Million 2.73% 3Q04 $ 356 Million 2.77% Total $ 2.7 Billion 2.55% Stockholders' equity was $1.5 billion, or 6.68% of total assets, at September 30, 2003. Astoria Federal continues to maintain capital ratios in excess of applicable regulatory requirements. At September 30, 2003, core, tangible and risk-based capital ratios of Astoria Federal were 7.52%, 7.52% and 15.66%, respectively. Third Quarter and Nine-Month Earnings Summary Net interest income for the three and nine month periods ended September 30, 2003 totaled $79.6 million and $284.9 million, respectively, compared to $116.1 million and $353.4 million, respectively, for the comparable 2002 periods. Astoria's net interest margin for the quarter ended September 30, 2003 was 1.52% compared to 1.78% on a linked quarter basis and 2.25% for the comparable 2002 period. For the nine months ended September 30, 2003, the net interest margin was 1.79% compared to 2.25% for the comparable 2002 period. The decline in the net interest margin was due, in part, to the repurchase of 9.1 million common shares over the past twelve months and the more rapid decline in the yield on interest earning assets than the cost of interest bearing liabilities. The decrease in the yield on interest earning assets was exacerbated by the effect of accelerated net premium amortization expense on mortgage loans and MBS. Net premium amortization expense on mortgage loans and MBS totaled $34.7 million for the 2003 third quarter compared to $13.4 million for the year ago third quarter. For the nine months ended September 30, 2003, net premium amortization totaled $93.6 million compared to $32.8 million for the comparable 2002 period. The accelerated level of net premium amortization is due to the unprecedented high level of mortgage refinance activity and should recede as interest rates rise and as mortgage loan and MBS refinance activity subsides. Non-interest income for the quarter ended September 30, 2003 totaled $33.9 million compared to $25.2 million for the quarter ended September 30, 2002. The increase is due to an increase in mortgage banking income, net, partially offset by lower gain on sales of securities in the 2003 third quarter. For the nine months ended September 30, 2003, non-interest income totaled $91.3 million compared to $76.5 million for the comparable 2002 period. The increase is due to increased mortgage banking income, net and increased gain on sales of securities. Gain on sales of securities for the quarter and nine months ended September 30, 2003 were $4.5 million and $14.7 million, respectively, compared to $8.5 million for both the comparable quarter and nine months of 2002. The components of mortgage banking income, net, which is included in non- interest income, are detailed below: (Dollars in millions) 3Q03 3Q02 2003 Nine Months 2002 Nine Months Loan servicing fees $ 1.8 $ 3.1 $ 6.2 $ 9.5 Amortization of MSR $(3.0) $(2.7) $(10.6) $ (6.7) MSR valuation adjustments $ 2.9 $(9.1) $ 0.2 $(10.2) Net gain on sale of loans $ 4.3 $ 1.1 $ 10.2 $ 3.9 Mortgage banking income, net $ 6.0 $(7.6) $ 6.0 $( 3.5) General and administrative expense ("G&A") for the quarter and nine months ended September 30, 2003 totaled $51.4 million and $155.2 million, respectively, compared to $48.6 million and $147.0 million, respectively, for the comparable 2002 periods. The G&A expense to average assets ratio for the 2003 third quarter was 0.92% compared to 0.89% a year ago. For the nine months ended September 30, 2003 the G&A expense to average assets ratio was 0.91% compared to 0.88% a year ago. Future Outlook Commenting on the outlook for next twelve months, Mr. Engelke stated, "We agree with the consensus for a gradual economic recovery in 2004. Real estate markets should remain fairly strong despite a substantial slowing of refinance activity. With refinance activity slowing, we can expect to realize a very significant earnings benefit as net premium amortization returns to more normal levels. Earnings will also benefit from the repricing of our borrowings at lower rates and the resumption of mortgage loan portfolio growth. Accordingly, we now expect earnings and the net interest margin in the fourth quarter to resemble the third quarter and to increase robustly during 2004." Astoria Financial Corporation, the holding company for Astoria Federal Savings and Loan Association, with assets of $22.1 billion, is the second largest thrift institution headquartered in New York and fifth largest in the United States. Astoria Federal embraces its philosophy of Putting people first by providing its 700,000 customers and the local communities it serves with quality financial products and services through 86 convenient banking office locations and multiple delivery channels, including its enhanced website, www.astoriafederal.com. Astoria commands the third largest deposit market share in the attractive Long Island market, which includes Brooklyn, Queens, Nassau and Suffolk counties with a population exceeding that of 38 individual states. Astoria originates mortgage loans through its banking offices and loan production offices in New York, an extensive broker network in nineteen states, primarily the East Coast, and through correspondent relationships in forty-four states. Forward Looking Statements This document contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based on various assumptions and analyses made by us in light of our management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non- occurrence of events may be subject to circumstances beyond our control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect our business; changes in accounting principles, policies or guidelines may cause our financial condition to be perceived differently; general economic conditions, either nationally or locally in some or all of the areas in which we do business, or conditions in the securities markets or the banking industry may be less favorable than we currently anticipate; legislative or regulatory changes may adversely affect our business; applicable technological changes may be more difficult or expensive than we anticipate; success or consummation of new business initiatives may be more difficult or expensive than we anticipate; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than we anticipate. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document. Earnings Conference Call October 17, 2003 at 9:30 a.m. (ET) The Company, as previously announced, indicated that Mr. Engelke will host an earnings conference call Friday morning, October 17, 2003 at 9:30 a.m. (ET). The toll-free dial-in number is (800) 967-7140. A replay will be available on October 17, 2003 from 1:00 p.m. (ET) through October 24, 2003, 11:59 p.m. (ET). The replay number is (888) 203-1112, passcode: 683375. The conference call will also be simultaneously webcast on the Company's website www.astoriafederal.com and archived through October 24, 2003. (1) Includes $900 million of borrowings with a weighted average rate of 5.29%, scheduled to mature in the fourth quarter, which were effectively extended through forward borrowing commitments entered into in the third quarter for an average term of 2.7 years, with a weighted average rate of 2.63%. (2) Includes $2.3 billion of borrowings that have a maturity date greater than one year but can be called prior to September 30, 2004. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, Except Share Data) At At September 30, December 31, 2003 2002 ASSETS Cash and due from banks $212,997 $167,605 Federal funds sold and repurchase agreements 71,354 510,252 Mortgage-backed securities available- for-sale 3,293,320 2,453,633 Other securities available-for-sale 159,237 338,948 Mortgage-backed securities held-to- maturity (fair value of $4,919,583 and $4,985,562, respectively) 4,861,216 4,925,891 Other securities held-to-maturity (fair value of $47,895 and $115,003, respectively) 47,370 115,366 Federal Home Loan Bank of New York stock 230,450 247,550 Loans held-for-sale, net 56,434 62,669 Loans receivable: Mortgage loans, net 11,894,172 11,680,160 Consumer and other loans, net 417,243 379,201 12,311,415 12,059,361 Allowance for loan losses (83,205) (83,546) Total loans receivable, net 12,228,210 11,975,815 Mortgage servicing rights, net 15,941 20,411 Accrued interest receivable 80,855 88,908 Premises and equipment, net 158,593 157,297 Goodwill 185,151 185,151 Bank owned life insurance 365,508 358,898 Other assets 102,452 89,435 TOTAL ASSETS $22,069,088 $21,697,829 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $11,212,887 $11,067,196 Reverse repurchase agreements 6,635,000 6,285,000 Federal Home Loan Bank of New York advances 1,964,000 2,064,000 Other borrowings, net 474,877 472,180 Mortgage escrow funds 138,576 104,353 Accrued expenses and other liabilities 168,531 151,102 TOTAL LIABILITIES 20,593,871 20,143,831 Stockholders' equity: Preferred stock, $1.00 par value; 5,000,000 shares authorized: Series A (1,225,000 shares authorized and - 0 - shares issued and outstanding) - - Series B (2,000,000 shares authorized, issued and outstanding) 2,000 2,000 Common stock, $.01 par value; (200,000,000 shares authorized; 110,996,592 shares issued; and 79,651,565 and 84,805,817 shares outstanding, respectively) 1,110 1,110 Additional paid-in capital 849,201 840,186 Retained earnings 1,450,778 1,368,062 Treasury stock (31,345,027 and 26,190,775 shares, at cost, respectively) (776,832) (639,579) Accumulated other comprehensive (loss) income (24,610) 9,800 Unallocated common stock held by ESOP (4,809,080 and 5,018,500 shares, respectively) (26,430) (27,581) TOTAL STOCKHOLDERS' EQUITY 1,475,217 1,553,998 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,069,088 $21,697,829 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Share Data) For the Three Months For the Nine Months Ended Ended September 30, September 30, 2003 2002 2003 2002 Interest income: Mortgage loans: One-to-four family $110,340 $154,192 $355,135 $484,150 Multi-family, commercial real estate and construction 53,419 42,644 149,084 117,714 Consumer and other loans 4,736 4,792 14,468 12,711 Mortgage-backed securities 71,276 91,552 253,537 289,273 Other securities 7,265 16,629 25,394 55,734 Federal funds sold and repurchase agreements 219 3,571 1,436 10,963 Total interest income 247,255 313,380 799,054 970,545 Interest expense: Deposits 55,176 71,702 170,606 225,472 Borrowed funds 112,447 125,554 343,557 391,653 Total interest expense 167,623 197,256 514,163 617,125 Net interest income 79,632 116,124 284,891 353,420 Provision for loan losses - 301 - 2,307 Net interest income after provision for loan losses 79,632 115,823 284,891 351,113 Non-interest income: Customer service fees 15,086 15,640 45,678 44,918 Other loan fees 2,001 2,242 5,868 5,922 Net gain on sales of securities 4,500 8,489 14,665 8,489 Mortgage banking income, net 5,954 (7,571) 6,014 (3,543) Income from bank owned life insurance 4,929 5,683 15,177 15,927 Other 1,410 729 3,916 4,787 Total non-interest income 33,880 25,212 91,318 76,500 Non-interest expense: General and administrative: Compensation and benefits 27,211 26,645 83,579 79,002 Occupancy, equipment and systems 15,094 13,373 44,868 39,600 Federal deposit insurance premiums 480 492 1,440 1,496 Advertising 1,501 997 4,743 3,555 Other 7,122 7,075 20,584 23,333 Total non-interest expense 51,408 48,582 155,214 146,986 Income before income tax expense 62,104 92,453 220,995 280,627 Income tax expense 20,503 30,237 72,108 93,262 Net income 41,601 62,216 148,887 187,365 Preferred dividends declared (1,500) (1,500) (4,500) (4,500) Net income available to common shareholders $40,101 $60,716 $144,387 $182,865 Basic earnings per common share $0.53 $0.73 $1.87 $2.17 Diluted earnings per common share $0.53 $0.72 $1.85 $2.13 Basic weighted average common shares 75,376,835 83,329,044 77,079,828 84,333,207 Diluted weighted average common and common equivalent shares 76,352,144 84,795,336 77,854,686 85,920,019 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES SELECTED FINANCIAL RATIOS AND OTHER DATA At or For the At or For the Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Selected Returns and Financial Ratios (annualized) Return on average stockholders' equity 11.35 % 15.72 % 13.13 % 15.92 % Return on average tangible stockholders' equity (1) 12.99 17.81 14.96 18.05 Return on average assets 0.74 1.14 0.88 1.13 General and administrative expense to average assets 0.92 0.89 0.91 0.88 Efficiency ratio (2) 45.29 34.37 41.26 34.19 Net interest rate spread (3) 1.48 2.12 1.74 2.11 Net interest margin (4) 1.52 2.25 1.79 2.25 Asset Quality Data (dollars in thousands) Non-performing loans/total loans 0.27 % 0.26 % Non-performing loans/total assets 0.15 0.15 Non-performing assets/total assets 0.15 0.15 Allowance for loan losses/ non- performing loans 250.11 259.20 Allowance for loan losses/non-accrual loans 254.96 268.43 Allowance for loan losses/ total loans 0.68 0.67 Net charge-offs to average loans outstanding (annualized) 0.01 % 0.01 % 0.00 0.01 Non-performing assets $33,839 $33,149 Non-performing loans 33,267 32,271 Loans 90 days past maturity but still accruing interest 633 1,109 Non-accrual loans 32,634 31,162 Net charge-offs $185 $258 341 944 Capital Ratios (Astoria Federal) Tangible 7.52 % 7.04 % Core 7.52 7.04 Risk-based 15.66 15.14 Other Data Cash dividends paid per common share $0.22 $0.20 $0.64 $0.57 Dividend payout ratio 41.51 % 27.78 % 34.59 % 26.76 % Stockholders' equity (in thousands) $1,475,217 $1,584,734 Common stockholders' equity (in thousands) 1,425,217 1,534,734 Book value per common share (5) 19.04 18.59 Tangible book value per common share (6) 16.57 16.35 Average equity/average assets 6.54 % 7.22 % 6.68 % 7.08 % Mortgage loans serviced for others (in thousands) $1,984,363 $2,916,842 Full time equivalent employees 1,979 1,952 (1) Average tangible stockholders' equity represents average stockholders' equity less average goodwill. (2) The efficiency ratio represents general and administrative expense divided by the sum of net interest income plus non-interest income. (3) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities. (4) Net interest margin represents net interest income divided by average interest-earning assets. (5) Book value per common share represents common stockholders' equity divided by outstanding common shares, excluding unallocated Employee Stock Ownership Plan, or ESOP, shares. (6) Tangible book value per common share represents common stockholders' equity less goodwill divided by outstanding common shares, excluding unallocated ESOP shares. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES AVERAGE BALANCE SHEETS (Dollars in Thousands) For the Three Months Ended September 30, 2003 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $8,944,114 $110,340 4.93% Multi-family, commercial real estate and construction 2,857,110 53,419 7.48 Consumer and other loans (1) 413,519 4,736 4.58 Total loans 12,214,743 168,495 5.52 Mortgage-backed securities (2) 8,179,267 71,276 3.49 Other securities (2)(3) 477,432 7,265 6.09 Federal funds sold and repurchase agreements 90,642 219 0.97 Total interest-earning assets 20,962,084 247,255 4.72 Goodwill 185,151 Other non-interest -earning assets 1,293,372 Total assets $22,440,607 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,940,389 3,127 0.43 Money market 1,348,441 1,986 0.59 NOW and demand deposit 1,529,299 292 0.08 Certificates of deposit 5,425,815 49,771 3.67 Total deposits 11,243,944 55,176 1.96 Borrowed funds 9,423,789 112,447 4.77 Total interest-bearing liabilities 20,667,733 167,623 3.24 Non-interest-bearing liabilities 306,258 Total liabilities 20,973,991 Stockholders' equity 1,466,616 Total liabilities and stockholders' equity $22,440,607 Net interest income/net interest rate spread $79,632 1.48 Net interest-earning assets/net interest margin $294,351 1.52 Ratio of interest-earning assets to interest-bearing liabilities 1.01x (1)Mortgage and consumer and other loans include loans held-for-sale and non-performing loans and exclude the allowance for loan losses. (2) Securities available-for-sale are reported at average amortized cost. (3) Other securities include Federal Home Loan Bank of New York stock. For the Three Months Ended September 30, 2002 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $10,012,425 $154,192 6.16% Multi-family, commercial real estate and construction 2,166,118 42,644 7.87 Consumer and other loans (1) 323,195 4,792 5.93 Total loans 12,501,738 201,628 6.45 Mortgage-backed securities (2) 6,376,544 91,552 5.74 Other securities (2) (3) 927,940 16,629 7.17 Federal funds sold and repurchase agreements 827,857 3,571 1.73 Total interest-earning assets 20,634,079 313,380 6.07 Goodwill 185,151 Other non-interest-earning assets 1,101,604 Total assets $21,920,834 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,810,974 7,938 1.13 Money market 1,870,756 7,777 1.66 NOW and demand deposit 1,273,066 931 0.29 Certificates of deposit 5,253,760 55,056 4.19 Total deposits 11,208,556 71,702 2.56 Borrowed funds 8,771,982 125,554 5.73 Total interest-bearing liabilities 19,980,538 197,256 3.95 Non-interest-bearing liabilities 357,532 Total liabilities 20,338,070 Stockholders' equity 1,582,764 Total liabilities and stockholders' equity $21,920,834 Net interest income/net interest rate spread $116,124 2.12% Net interest-earning assets/net interest margin $653,541 2.25% Ratio of interest-earning assets to interest-bearing liabilities 1.03x (1)Mortgage and consumer and other loans include loans held-for-sale and non-performing loans and exclude the allowance for loan losses. (2) Securities available-for-sale are reported at average amortized cost. (3) Other securities include Federal Home Loan Bank of New York stock. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES AVERAGE BALANCE SHEETS (Dollars in Thousands) For the Nine Months Ended September 30, 2003 Average Average Yield/ Balance Interest Cost Assets: (Annualized) Interest-earning assets: Mortgage loans(1): One-to-four family $ 8,994,985 $ 355,135 5.26% Multi-family, commercial real estate and construction 2,634,045 149,084 7.55 Consumer and other loans(1) 403,689 14,468 4.78 Total loans 12,032,719 518,687 5.75 Mortgage-backed securities(2) 8,423,400 253,537 4.01 Other securities (2) (3) 550,399 25,394 6.15 Federal funds sold and repurchase agreements 167,965 1,436 1.14 Total interest-earning assets 21,174,483 799,054 5.03 Goodwill 185,151 Other non-interest-earning assets 1,262,642 Total assets $ 22,622,276 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $ 2,897,358 10,243 0.47 Money market 1,450,089 8,198 0.75 NOW and demand deposit 1,469,279 1,304 0.12 Certificates of deposit 5,389,094 150,861 3.73 Total deposits 11,205,820 170,606 2.03 Borrowed funds 9,603,936 343,557 4.77 Total interest-bearing liabilities 20,809,756 514,163 3.29 Non-interest-bearing liabilities 300,773 Total liabilities 21,110,529 Stockholders' equity 1,511,747 Total liabilities and stockholders' equity $ 22,622,276 Net interest income/net interest rate spread $ 284,891 1.74% Net interest-earning assets/net interest margin $ 364,727 1.79% Ratio of interest-earning assets to interest-bearing liabilities 1.02x (1) Mortgage and consumer and other loans include loans held-for-sale and non-performing loans and exclude the allowance for loan losses. (2) Securities available-for-sale are reported at average amortized cost. (3) Other securities include Federal Home Loan Bank of New York stock. For the Nine Months Ended September 30, 2002 Average Average Yield/ Balance Interest Cost Assets: (Annualized) Interest-earning assets: Mortgage loans(1): One-to-four family $ 10,221,945 $ 484,150 6.32% Multi-family, commercial real estate and construction 1,982,618 117,714 7.92 Consumer and other loans(1) 287,169 12,711 5.90 Total loans 12,491,732 614,575 6.56 Mortgage-backed securities(2) 6,503,436 289,273 5.93 Other securities (2) (3) 1,092,241 55,734 6.80 Federal funds sold and repurchase agreements 857,510 10,963 1.70 Total interest-earning assets 20,944,919 970,545 6.18 Goodwill 185,151 Other non-interest-earning assets 1,043,406 Total assets $ 22,173,476 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $ 2,732,395 24,607 1.20 Money market 1,920,586 27,632 1.92 NOW and demand deposit 1,239,817 2,650 0.28 Certificates of deposit 5,209,688 170,583 4.37 Total deposits 11,102,486 225,472 2.71 Borrowed funds 9,130,247 391,653 5.72 Total interest-bearing liabilities 20,232,733 617,125 4.07 Non-interest-bearing liabilities 371,810 Total liabilities 20,604,543 Stockholders' equity 1,568,933 Total liabilities and stockholders' equity $ 22,173,476 Net interest income/net interest rate spread $ 353,420 2.11% Net interest-earning assets/net interest margin $ 712,186 2.25% Ratio of interest-earning assets to interest-bearing liabilities 1.04x (1) Mortgage and consumer and other loans include loans held-for-sale and non-performing loans and exclude the allowance for loan losses. (2) Securities available-for-sale are reported at average amortized cost. (3) Other securities include Federal Home Loan Bank of New York stock. SOURCE Astoria Financial Corporation -0- 10/16/2003 /CONTACT: Peter J. Cunningham, First Vice President, Investor Relations of Astoria Financial Corporation, +1-516-327-7877, ir@astoriafederal.com/ /Company News On-Call: http://www.prnewswire.com/comp/104529.html/ /Web site: http://ir.astoriafederal.com/ (AF) CO: Astoria Financial Corporation ST: New York IN: FIN SU: ERN CCA -----END PRIVACY-ENHANCED MESSAGE-----