EX-99.1 2 e19364ex99_1.txt PRESS RELEASE Exhibit 99.1 Astoria Financial Corporation Announces 51% Increase in Third Quarter EPS TO $0.80 Quarterly Cash Dividend of $0.25 Per Common Share Declared LAKE SUCCESS, N.Y, Oct. 21 /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 $58.1 million, or $0.80 diluted earnings per common share, for the quarter ended September 30, 2004, representing an increase of 40% and 51%, respectively, from net income of $41.6 million, or $0.53 diluted earnings per common share, for the 2003 third quarter. For the nine months ended September 30, 2004, net income totaled $169.0 million, or $2.28 diluted earnings per common share, up 14% and 23%, respectively, from $148.9 million, or $1.85 diluted earnings per common share for the comparable 2003 period. Net income and diluted earnings per common share for the quarter and nine month periods ended September 30, 2004 include an after-tax charge of $2.2 million, or $0.03 per diluted common share, pursuant to a previously announced arbitration award settlement in the third quarter. Third Quarter Financial Highlights: -- Diluted EPS: $0.80, up 51% from comparable period last year -- Net interest income: $121.9 million, up 53% from comparable period last year -- Net interest margin: 2.25%, up 73 basis points from comparable period last year -- Return on average assets: 1.02%, up 38% from comparable period last year -- Return on average equity: 16.82%, up 48% from comparable period last year -- Return on average tangible equity: 19.42%, up 49% from comparable period last year -- Total deposits increased $983.3 million to $12.2 billion, or 12% annualized from December 31, 2003 -- Total loans increased $117.2 million to $12.8 billion, or 1% annualized from December 31, 2003 -- Multifamily/Commercial Real Estate ("CRE") loan portfolio increased $334.4 million to $3.4 billion, or 14% annualized from December 31, 2003 and currently represents 27% of total loans -- Non-performing assets to total assets: 0.12%, an improvement of 20% from September 30, 2003 Commenting on the third quarter results, George L. Engelke, Jr., Chairman, President and Chief Executive Officer of Astoria, noted, "We are pleased to report another double-digit year-over-year increase in quarterly net income, earnings per share and returns on equity and tangible equity, due primarily to a 73 basis point increase in the net interest margin. Importantly, the combination of solid loan originations and lower mortgage refinance activity has resulted in a resumption of loan portfolio growth." Board Declares Quarterly Cash Dividend The Board of Directors of the Company, at their October 20, 2004 meeting, declared a quarterly cash dividend of $0.25 per common share. The dividend is payable on December 1, 2004 to shareholders of record as of November 15, 2004. This is the thirty-eighth consecutive quarterly cash dividend declared by the Company. Tenth Stock Repurchase Program Continues During the third quarter, Astoria repurchased 2.0 million shares of its common stock at an average cost of $35.61 per share. For the nine months ended September 30, 2004, Astoria repurchased 4.6 million shares at an average cost of $36.61 per share. The tenth repurchase program, which commenced during the third quarter and authorizes the repurchase of eight million shares, has approximately six million shares remaining. Moody's Upgrades Astoria Financial Corporation's Senior Debt On October 14, 2004, Moody's Investors Service announced that it upgraded the senior debt of Astoria Financial Corporation to Baa1 from Baa3. At the same time, the deposits of Astoria Federal were upgraded as follows: long- term deposits to A3 from Baa1 and short-term deposits to Prime-1 from Prime-2. According to Moody's, the upgrade is based on, among other things, Astoria's demonstrated ability to continue to enhance its healthy low-cost core deposit franchise in Long Island, Brooklyn and Queens, a particularly competitive market. Balance Sheet Summary Total assets increased to $22.8 billion at September 30, 2004 from $22.3 billion at June 30, 2004 and $22.5 billion at December 31, 2003. Total loans increased to $12.8 billion at September 30, 2004 from $12.6 billion at June 30, 2004 and $12.7 billion at December 31, 2003. Mortgage loan originations and purchases for the quarter ended September 30, 2004 totaled $1.0 billion compared to $2.3 billion for the 2003 third quarter, of which $635.3 million and $1.7 billion, respectively, were one-to-four family loans, predominately 3/1 and 5/1 adjustable rate loans. For the nine months ended September 30, 2004, mortgage loan originations and purchases totaled $3.1 billion compared to $5.8 billion for the comparable 2003 period of which $2.2 billion and $4.6 billion, respectively, were one-to-four family loans. The decrease in mortgage loan volume was due to reduced mortgage loan refinance activity due to higher interest rates in 2004 as compared to 2003. Mortgage loan prepayments for the quarter and nine months ended September 30, 2004 totaled $691.1 million and $2.4 billion, respectively, compared to $1.5 billion and $4.3 billion for the respective 2003 periods. For the quarter ended September 30, 2004, multifamily and CRE loan originations totaled $349.8 million compared to $556.6 million for the 2003 third quarter. For the nine month period ended September 30, 2004, multifamily and CRE loan originations totaled $863.8 million compared to $1.2 billion for the 2003 nine month period. The multifamily and CRE loan portfolio grew $138.1 million, or 17% on an annualized basis, from June 30, 2004 and $334.4 million, or 14% on an annualized basis, from December 31, 2003, and totals $3.4 billion, or 27% of total loans, at September 30, 2004. The average loan-to-value ratio of the combined multifamily and CRE loan portfolios continues to be less than 65%, based on current principal balance and original appraised value, and the average loan balance is less than $1 million. The Company's strong multifamily and CRE lending capabilities are reflected in the growth of these portfolios since 1999: (Dollars in millions) 12/31/99 12/31/00 12/31/01 12/31/02 Multifamily/CRE Loans $1,014 $1,282 $1,693 $2,345 % of Total Loans 10% 11% 14% 20% Change (Dollars in millions) 12/31/03 9/30/04 12/31/99-9/30/04 Multifamily/CRE Loans $3,111 $3,445 +240% % of Total Loans 25% 27% +170% At September 30, 2004, non-performing loans totaled $27.0 million, or 0.12% of total assets compared to $33.3 million, or 0.15% of total assets, at September 30, 2003. Net charge-offs for the quarter and nine months ended September 30, 2004 totaled $15,000 and $318,000, respectively, or an annualized rate of less than one basis point of average total loans outstanding. The ratio of the allowance for loan losses to non-performing loans at September 30, 2004 was 307%. Mortgage-backed securities ("MBS") increased $318.5 million from the previous quarter and $278.7 million from December 31, 2003 and total $8.5 billion, or 37% of total assets, at September 30, 2004. Of the total, $2.3 billion, equal to 10% of total assets, are categorized as available-for-sale. The increase in MBS was primarily due to slower than expected cash flow. A detailed profile of the premium/discount associated with our fixed rate CMO/REMIC MBS portfolio at September 30, 2004 follows: (Dollars in Unamortized millions) Book Premium/ MBS Collateral Weighted Value (Discount) Coupon Coupon Avg Life Premium CMO/REMIC MBS $ 1,655 $ 14.7 4.96% 6.02% 2.4 yrs Discount/Par CMO/REMIC MBS $ 6,751 $ ( 25.8) 4.20% 5.76% 3.5 yrs Total $ 8,406 $ ( 11.1) 4.35% 5.81% 3.3 yrs Deposits increased $274.2 million, or 9% on an annualized basis, from June 30, 2004 and $983.3 million, or 12% annualized from December 31, 2003 to $12.2 billion at September 30, 2004. The increases for the quarter and nine months were primarily due to increases of $393.2 million and $1.2 billion, respectively, in CD accounts which total $6.7 billion at September 30, 2004. The growth reflects the continued success of a marketing campaign that has focused on attracting medium and long-term deposits. During the third quarter of 2004, $706.5 million of CDs with a weighted average rate of 1.88% and an average original term of 15 months matured and $1.0 billion of CDs were issued or repriced at a weighted average rate of 2.67% for an average term of 19 months. For the nine months ended September 30, 2004, $2.9 billion of CDs, with a weighted average rate of 2.21% and an average original term of 14 months matured and $3.9 billion of CDs were issued or repriced at a weighted average rate of 2.62% for an average term of 20 months. "The CD marketing campaign, in addition to providing the funding to help manage interest rate risk, continues to produce new customers from our communities, creating relationship development opportunities," Mr. Engelke noted. Checking account deposits totaled $1.5 billion at September 30, 2004 for 2002 and increased $40.5 million, or 4% annualized from December 31, 2003. Additionally, our small business banking initiatives continue to result in solid growth of business deposits. Business deposits, including savings and checking accounts, totaled $281.3 million at September 30, 2004 and increased $44.2 million, or 25% annualized from December 31, 2003. Borrowings totaled $8.9 billion at September 30, 2004, or 39% of total assets, an increase of $116.2 million from the previous quarter and a decrease of $712.1 million from December 31, 2003. Stockholders' equity was $1.4 billion, or 6.09% of total assets at September 30, 2004. Astoria Federal continues to maintain capital ratios in excess of regulatory requirements with core, tangible and risk-based capital ratios of 6.85%, 6.85% and 14.16%, respectively, at September 30, 2004. Third Quarter and Nine Month Earnings Summary Net interest income for the quarter ended September 30, 2004 increased 53% to $121.9 million from $79.6 million for the 2003 third quarter and for the nine months ended September 30, 2004 increased 23% to $349.7 million from $284.9 million for the comparable 2003 nine-month period. Astoria's net interest margin for the quarter ended September 30, 2004 was 2.25% compared to 2.13% on a linked quarter basis and 1.52% for the prior year quarter. The linked quarter and year over year increases in the net interest margin are primarily attributable to lower premium amortization expense. Net premium amortization expense decreased 55% to $5.7 million for the 2004 third quarter from $12.7 million in the prior quarter and declined $29.0 million, or 84%, from the year ago third quarter. For the nine months ended September 30, 2004, net premium amortization expense declined 71%, or $66.9 million, to $26.7 million from $93.6 million for the comparable 2003 nine month period. Details are highlighted in the following chart: MBS and Mortgage Loan Net Premium Amortization Trends (Dollars in Year Over Year Linked Quarter millions) 3Q03 2Q04 3Q04 $ Change % Change $ Change % Change MBS $22.6 $4.0 $0.9 $(21.7) (96%) $(3.1) (78%) Mortgage Loans $12.1 $8.7 $4.8 $( 7.3) (60%) $(3.9) (45%) Total $34.7 $12.7 $5.7 $(29.0) (84%) $(7.0) (55%) Nine Months Ended September 30, (Dollars in millions) 2003 2004 MBS $58.2 $7.8 Mortgage Loans $35.4 $18.9 Total $93.6 $26.7 Non-interest income for the quarter and nine months ended September 30, 2004 totaled $24.0 million and $74.0 million, respectively, compared to $33.9 million and $91.3 million, respectively, for the comparable 2003 periods. The decreases for the three and nine month periods were primarily due to lower mortgage banking income, net, and lower net gain on sales of securities. Net gain on sales of securities for the quarter and nine months ended September 30, 2004 totaled $2.3 million and $4.7 million, respectively, compared to $4.5 million and $14.7 million, respectively, for the comparable 2003 periods. Customer service fees for the quarter and nine months ended September 30, 2004 totaled $15.3 million and $43.6 million, respectively, compared to $15.1 million and $45.7 million, respectively, for the comparable 2003 periods. Mortgage banking income, net, which is included in non-interest income decreased as compared to the respective 2003 periods as detailed in the table below: (Dollars in millions) 3Q04 3Q03 9Mos04 9Mos03 Loan servicing fees $ 1.4 $ 1.8 $ 4.4 $6.2 Amortization of MSR* (1.4) (3.0) (5.2) (10.6) MSR valuation adjustments (1.9) 2.9 1.9 0.2 Net gain on sale of loans 0.7 4.3 2.8 10.2 Mortgage banking (loss) income, net $ (1.2) $ 6.0 $3.9 $6.0 *Mortgage servicing rights General and administrative expense ("G&A") for the quarter and nine months ended September 30, 2004 totaled $59.2 million and $171.6 million, respectively, compared to $51.4 million and $155.2 million, respectively, for the comparable 2003 periods. The increases for the 2004 third quarter and nine month period are primarily due to increased compensation and benefits expense, increased occupancy, equipment and systems expense, due to, among other things, systems enhancements over the past year and a previously announced third quarter $3.2 million, pre-tax, arbitration award settlement. Future Outlook Commenting on the outlook for the remainder of 2004, Mr. Engelke stated, "In the current environment of low long-term interest rates, purchase mortgage activity continues to remain strong and represented 61% of our third quarter residential mortgage loan applications. With continued mortgage loan origination activity, we should experience good core business balance sheet and net interest income growth. The continued flattening of the U.S. Treasury yield curve, however, will temper near-term margin expansion. We will remain focused on building our core businesses, with particular emphasis on growing our deposits and increasing the 1-4 family, multifamily and CRE loan portfolios." Astoria Financial Corporation, the holding company for Astoria Federal Savings and Loan Association, with assets of $22.8 billion is the fifth largest thrift institution in the United States. Established in 1888, Astoria Federal is the largest thrift depository headquartered in New York with deposits of $12.2 billion and embraces its philosophy of Putting people first by providing the customers and local communities it serves with quality financial products and services through 86 convenient banking office locations and multiple delivery channels, including its enhanced website, http://www.astoriafederal.com . Astoria commands the fourth largest deposit market share in the attractive Long Island market, which includes Brooklyn, Queens, Nassau and Suffolk counties with a population exceeding that of 39 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 21, 2004 at 3:30 p.m. (ET) The Company, as previously announced, indicated that Mr. Engelke will host an earnings conference call Thursday afternoon, October 21, 2004 at 3:30 p.m. (ET). The toll-free dial-in number is (800) 967-7140. A replay will be available on October 21, 2004 from 7:00 p.m. (ET) through October 29, 2004, 11:59 p.m. (ET). The replay number is (888) 203-1112, passcode: 838648. The conference call will also be simultaneously webcast on the Company's website http://www.astoriafederal.com and archived for one year. Tables Follow ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, Except Share Data) At At September 30, December 31, 2004 2003 ASSETS Cash and due from banks $127,517 $173,828 Federal funds sold and repurchase agreements 126,535 65,926 Mortgage-backed securities available-for-sale 2,329,953 2,498,315 Other securities available-for-sale 128,231 156,677 Mortgage-backed securities held-to-maturity (fair value of $6,199,790 and $5,761,666, respectively) 6,192,781 5,745,706 Other securities held-to-maturity (fair value of $42,522 and $47,451, respectively) 41,980 47,021 Federal Home Loan Bank of New York stock, at cost 144,950 213,450 Loans held-for-sale, net 17,132 23,023 Loans receivable: Mortgage loans, net 12,308,297 12,248,772 Consumer and other loans, net 495,841 438,215 12,804,138 12,686,987 Allowance for loan losses (82,803) (83,121) Total loans receivable, net 12,721,335 12,603,866 Mortgage servicing rights, net 17,375 17,952 Accrued interest receivable 80,319 77,956 Premises and equipment, net 157,427 160,089 Goodwill 185,151 185,151 Bank owned life insurance 374,706 370,310 Other assets 129,471 122,324 TOTAL ASSETS $22,774,863 $22,461,594 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $12,169,869 $11,186,594 Reverse repurchase agreements 6,884,592 7,235,000 Federal Home Loan Bank of New York advances 1,577,000 1,924,000 Other borrowings, net 458,384 473,037 Mortgage escrow funds 149,271 108,635 Accrued expenses and other liabilities 149,737 137,797 TOTAL LIABILITIES 21,388,853 21,065,063 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 and - 0 - shares issued and outstanding) -- -- Common stock, $.01 par value; (200,000,000 shares authorized; 110,996,592 shares issued; and 74,960,208 and 78,670,254 shares outstanding, respectively) 1,110 1,110 Additional paid-in capital 810,170 798,583 Retained earnings 1,591,452 1,481,546 Treasury stock (36,036,384 and 32,326,338 shares, at cost, respectively) (957,154) (811,993) Accumulated other comprehensive loss (34,510) (46,489) Unallocated common stock held by ESOP (4,559,470 and 4,760,054 shares, respectively) (25,058) (26,226) TOTAL STOCKHOLDERS' EQUITY 1,386,010 1,396,531 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,774,863 $22,461,594 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Share Data) For the Three For the Nine Months Ended Months Ended September 30, September 30, 2004 2003 2004 2003 Interest income: Mortgage loans: One-to-four family $105,299 $110,340 $320,854 $355,135 Multi-family, commercial real estate and construction 56,617 53,419 164,882 149,084 Consumer and other loans 5,385 4,736 15,073 14,468 Mortgage-backed securities 92,677 71,276 264,430 253,537 Other securities 3,777 7,265 11,797 25,394 Federal funds sold and repurchase agreements 325 219 701 1,436 Total interest income 264,080 247,255 777,737 799,054 Interest expense: Deposits 62,116 55,176 173,248 170,606 Borrowed funds 80,106 112,447 254,802 343,557 Total interest expense 142,222 167,623 428,050 514,163 Net interest income 121,858 79,632 349,687 284,891 Provision for loan losses -- -- -- -- Net interest income after provision for loan losses 121,858 79,632 349,687 284,891 Non-interest income: Customer service fees 15,316 15,086 43,619 45,678 Other loan fees 1,186 2,001 3,636 5,868 Net gain on sales of securities 2,279 4,500 4,651 14,665 Mortgage banking (loss) income, net (1,229) 5,954 3,904 6,014 Income from bank owned life insurance 4,208 4,929 12,886 15,177 Other 2,276 1,410 5,345 3,916 Total non-interest income 24,036 33,880 74,041 91,318 Non-interest expense: General and administrative: Compensation and benefits 30,500 27,211 91,546 83,579 Occupancy, equipment and systems 15,943 15,094 48,434 44,868 Federal deposit insurance premiums 439 480 1,329 1,440 Advertising 1,652 1,501 5,062 4,743 Other 10,634 7,122 25,200 20,584 Total non-interest expense 59,168 51,408 171,571 155,214 Income before income tax expense 86,726 62,104 252,157 220,995 Income tax expense 28,619 20,503 83,136 72,108 Net income 58,107 41,601 169,021 148,887 Preferred dividends declared -- (1,500) -- (4,500) Net income available to common shareholders $58,107 $40,101 $169,021 $144,387 Basic earnings per common share $0.81 $0.53 $2.32 $1.87 Diluted earnings per common share $0.80 $0.53 $2.28 $1.85 Basic weighted average common shares 71,381,938 75,376,835 72,745,430 77,079,828 Diluted weighted average common and common equivalent shares 72,485,580 76,352,144 73,980,086 77,854,686 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, 2004 2003 2004 2003 Selected Returns and Financial Ratios (annualized) Return on average stockholders' equity 16.82 % 11.35 % 16.15 % 13.13 % Return on average tangible stockholders' equity (1) 19.42 12.99 18.62 14.96 Return on average assets 1.02 0.74 1.00 0.88 General and administrative expense to average assets 1.04 0.92 1.02 0.91 Efficiency ratio (2) 40.56 45.29 40.49 41.26 Net interest rate spread (3) 2.17 1.48 2.09 1.74 Net interest margin (4) 2.25 1.52 2.17 1.79 Asset Quality Data (dollars in thousands) Non-performing loans/total loans 0.21 % 0.27 % Non-performing loans/total assets 0.12 0.15 Non-performing assets/total assets 0.12 0.15 Allowance for loan losses/non-performing loans 306.78 250.11 Allowance for loan losses/non-accrual loans 310.82 254.96 Allowance for loan losses/total loans 0.65 0.68 Net charge-offs to average loans outstanding (annualized) 0.00 % 0.01 % 0.00 0.00 Non-performing assets $27,369 $33,839 Non-performing loans 26,991 33,267 Loans 90 days past maturity but still accruing interest 351 633 Non-accrual loans 26,640 32,634 Net charge-offs $15 $185 318 341 Capital Ratios (Astoria Federal) Tangible 6.85 % 7.52 % Core 6.85 7.52 Risk-based 14.16 15.66 Other Data Cash dividends paid per common share $0.25 $0.22 $0.75 $0.64 Dividend payout ratio 31.25 % 41.51 % 32.89 % 34.59 % Stockholders' equity (in thousands) $1,386,010 $1,475,217 Common stockholders' equity (in thousands) 1,386,010 1,425,217 Book value per common share (5) 19.69 19.04 Tangible book value per common share (6) 17.06 16.57 Average equity/average assets 6.08 % 6.54 % 6.20 % 6.68 % Mortgage loans serviced for others (in thousands) $1,713,683 $1,984,363 Full time equivalent employees 1,863 1,979 (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, 2004 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $8,717,579 $105,299 4.83 % Multi-family, commercial real estate and construction 3,490,790 56,617 6.49 Consumer and other loans (1) 487,294 5,385 4.42 Total loans 12,695,663 167,301 5.27 Mortgage-backed securities (2) 8,578,352 92,677 4.32 Other securities (2) (3) 335,381 3,777 4.50 Federal funds sold and repurchase agreements 94,472 325 1.38 Total interest-earning assets 21,703,868 264,080 4.87 Goodwill 185,151 Other non-interest-earning assets 837,763 Total assets $22,726,782 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,990,457 3,017 0.40 Money market 1,058,120 1,473 0.56 NOW and demand deposit 1,545,845 233 0.06 Certificates of deposit 6,449,625 57,393 3.56 Total deposits 12,044,047 62,116 2.06 Borrowed funds 8,997,278 80,106 3.56 Total interest-bearing liabilities 21,041,325 142,222 2.70 Non-interest-bearing liabilities 303,582 Total liabilities 21,344,907 Stockholders' equity 1,381,875 Total liabilities and stockholders' equity $22,726,782 Net interest income/net interest rate spread $121,858 2.17 % Net interest-earning assets/net interest margin $662,543 2.25 % Ratio of interest-earning assets to interest-bearing liabilities 1.03x 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 1,297,335 Total assets $22,444,570 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 9,427,655 112,447 4.77 Total interest-bearing liabilities 20,671,599 167,623 3.24 Non-interest-bearing liabilities 306,355 Total liabilities 20,977,954 Stockholders' equity 1,466,616 Total liabilities and stockholders' equity $22,444,570 Net interest income/net interest rate spread $79,632 1.48 % Net interest-earning assets/net interest margin $290,485 1.52 % Ratio of interest-earning assets to interest-bearing liabilities 1.01x (1) Mortgage and consumer and other loans include 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, 2004 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $8,872,991 $320,854 4.82 % Multi-family, commercial real estate and construction 3,365,136 164,882 6.53 Consumer and other loans (1) 468,116 15,073 4.29 Total loans 12,706,243 500,809 5.26 Mortgage-backed securities (2) 8,297,090 264,430 4.25 Other securities (2) (3) 370,374 11,797 4.25 Federal funds sold and repurchase agreements 84,662 701 1.10 Total interest-earning assets 21,458,369 777,737 4.83 Goodwill 185,151 Other non-interest-earning assets 874,952 Total assets $22,518,472 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,984,602 8,950 0.40 Money market 1,121,802 4,591 0.55 NOW and demand deposit 1,523,215 684 0.06 Certificates of deposit 6,038,738 159,023 3.51 Total deposits 11,668,357 173,248 1.98 Borrowed funds 9,152,391 254,802 3.71 Total interest-bearing liabilities 20,820,748 428,050 2.74 Non-interest-bearing liabilities 302,456 Total liabilities 21,123,204 Stockholders' equity 1,395,268 Total liabilities and stockholders' equity $22,518,472 Net interest income/net interest rate spread $349,687 2.09 % Net interest-earning assets/net interest margin $637,621 2.17 % Ratio of interest-earning assets to interest-bearing liabilities 1.03x For the Nine Months Ended September 30, 2003 Average Average Yield/ Balance Interest Cost (Annualized) Assets: 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 1,266,594 Total assets $22,626,228 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 9,607,802 343,557 4.77 Total interest-bearing liabilities 20,813,622 514,163 3.29 Non-interest-bearing liabilities 300,859 Total liabilities 21,114,481 Stockholders' equity 1,511,747 Total liabilities and stockholders' equity $22,626,228 Net interest income/net interest rate spread $284,891 1.74 % Net interest-earning assets/net interest margin $360,861 1.79 % Ratio of interest-earning assets to interest-bearing liabilities 1.02x (1) Mortgage and consumer and other loans include 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- 10/21/2004 /CONTACT: Peter J. Cunningham, First Vice President, Investor Relations, +1-516-327-7877, ir@astoriafederal.com / /Company News On-Call: http://www.prnewswire.com/comp/104529.html/ /Web site: http://www.astoriafederal.com http://ir.astoriafederal.com / (AF) CO: Astoria Financial Corporation ST: New York IN: FIN SU: ERN CCA