EX-99.1 2 v156531_ex99-1.htm SLIDE PRESENTATION

Investor Presentation

Second Quarter Ended

June 30, 2009

www.astoriafederal.com

LONG ISLAND’S PREMIER COMMUNITY BANK

Forward Looking Statement

This presentation may contain 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.  Forward-looking statements are based on various assumptions and analyses made by us in light
of our management’s experience and 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 or affect the value of our
investments; 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 areas in which we do
business, or conditions in the real estate or 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 be determined adverse to us
or may delay 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.

NYSE: AF

Corporate Profile

$21.1 billion in assets

$16.0 billion in loans

$13.6 billion in deposits

8.0% deposit market share in Long Island market

– Largest thrift depository

Insider & ESOP stock ownership: 23%

Well capitalized

– Bank regulatory capital: target > 6%

Core and tangible capital: 6.62%

Risk-based capital: 12.73%

Tier 1 risk-based capital: 11.46%

All figures in this presentation are as of June 30, 2009, except as noted.

• 1-4 Family loan portfolio increased $69.1 million, or 0.6%, from June 30, 2008,
to $11.9 billion with a weighted average rate of 5.52% at June 30, 2009

•         Deposits increased $521.1 million, or 4.0%, from June 30, 2008, to $13.6 billion
            at June 30, 2009; weighted average rate of deposits declined 57 bp from
            June 30, 2008, to 2.30% at June 30, 2009

• Net interest income increased $16.5 million, or 17.8% from 2Q08, to $109.1
million for 2Q09

• Net interest margin increased 35 basis points from 2Q08, or 19.3%, to 2.16% for
2Q09

• Pre-tax, pre-provision operating income for the twelve months ended June 30,
2009 totaled $282.4 million*

• Tangible book value at June 30, 2009: $10.95 per share

Financial Highlights

* For a reconciliation of GAAP measures to non-GAAP measures, please refer to the table on page 27.

EFFICIENCY

MORTGAGE LENDING

• Portfolio lender,

• 1-4 Family, Multi-Family and CRE

expertise

• Solid asset quality

RETAIL BANKING

• Premier community bank on

Long Island

• Dominant deposit market share

• #1 thrift depository in core market

Same Simple Business Model

NOT A MTGE. BANKER

Primarily short-term, 5/1 jumbo prime hybrid ARMs for portfolio

No sub-prime, payment option or negative amortization ARM lending

Average loan amount for first six months 2009 production = $720,000

Average LTV on 1H09 production = 56% at origination

Average LTV on total 1-4 family loan portfolio < 62%^*

Multiple delivery channels provide flexibility & efficiency

Retail

Commissioned brokers covering 17 states^**

Third party originators – correspondents covering 18 states^**

Secondary marketing capability

Sale of 15 year and 30 year fixed rate conforming loans

Geographically diversified portfolio

Reduces lending concentrations

1-4 Family Mortgage Lending

* Based on current principal balances and original appraised values.

** All loans underwritten to Astoria’s stringent standards. Includes Washington, D.C.

Solid Multi-family/CRE portfolio

$3.6 billion in portfolio

Weighted Average Coupon at June 30, 2009: 5.98%

Weighted average LTV < 61%*

Average loan < $1 million

Approximately 70% of multi-family portfolio is
subject to rent control or rent stabilization

Limit originations in current economic environment

Multi-family/Commercial Real Estate Lending

* Based on current principal balances and original appraised values.

• $13.6 billion in deposits, 85 banking office network

Serving the Long Island market since 1888

• Low cost/stable source of funds – weighted average rate: 2.30%^*

• $12.7 billion, or 93%, of total deposits emanate from within

5 miles of a branch – no broker or municipal deposits

• Banking offices with high average deposits contribute to
efficiency

Long Island Offices (82) – Nassau (28), Queens (17), Suffolk (25),
Brooklyn (12) – Average Deposits of $159 Million

Westchester Offices (3) – Average Deposits of $204 Million

• Alternative delivery channels

ATM’s, telephone and Internet banking

* At June 30, 2009

Leading Retail Banking Franchise

Organic growth vs. de-novo branching

Differentiation from competition

– Maintain pricing discipline

– Pro-active sales culture – PEAK Process

– Focus on customer service – High customer satisfaction

– Community involvement – Support over 575 local

organizations and not-for-profit agencies in our markets

Astoria Federal is an integral part of the fabric of the communities we serve

Retail Banking Philosophy

TOTAL 4 COUNTY POPULATION: 7,661,593

Exceeds population of 38 U.S. states

Source: FDIC Summary of Deposits (as of June 30, 2008)

Kings County (Brooklyn)

Population: 2,548,982

Median household income: $43,514

Deposits: $1.6 billion

Branches: 12

Market share: 5%

Rank: #2 thrift, #6 all banks

Queens County

Population: 2,279,742

Median household income: $57,409

Deposits: $3.1 billion

Branches: 17

Market share: 8%

Rank: #1 thrift, #4 all banks

Nassau County

Population: 1,334,459

Median household income: $100,150

Deposits: $5.1 billion

Branches: 28

Market share: 10%

Rank: #1 thrift, #4 all banks

Suffolk County

Population: 1,498,410

Median household income: $86,495

Deposits: $3.1 billion

Branches: 25

Market share: 8%

Rank: #1 thrift, #3 all banks

Long Island Powerhouse

Well Positioned in Key Markets

Overall LI Deposit Share Ranking:

#1- all thrifts, #4- all banks

Brooklyn, Queens, Nassau and Suffolk

Market Share Trend 1999 - 2008

Note: Data adjusted to include the effect of merger and acquisition activity.

* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits. Reflects one branch closed in 3Q08

Source: FDIC Summary of Deposits. Data as of June 30, 2008. Top 8 represents institutions with deposits exceeding $5 Billion.

($ in millions)

June 08

June 99-08

June 2008

June 99-08

Market

Market Share

Change in #

Institution

Deposits

Growth

Share

Gain/(Loss)

of Branches

TD Bank

7,233

100.0

4.5

Citibank

19,818

5,977

43.2

12.4

(0.1)

(18)

ASTORIA*

12,802

3,608

39.2

8.0

(0.3)

(2)

NY Community

10,069

2,026

25.2

6.3

(0.9)

HSBC

10,461

1,930

22.6

6.5

(1.1)

(6)

Capital One

22,800

5,423

31.2

14.2

(1.4)

Chase

38,034

9,914

35.3

23.7

(1.5)

Bank of America

5,360

(2,578)

(32.5)

3.3

(3.8)

(2)

Total - Top 8

126,577

33,533

36.0

79.0

(4.6)

+ 114

Total - Core Market

160,225

48,882

43.9

100.0

+ 306

Low Expense Ratio⁽¹⁾

(1) G&A expense ratio represents general and administrative expense divided by average assets.

* Data is for the quarter ended March 31, 2009.

Source: SNL Financial – Median Ratios

0.0

0.5

1.0

1.5

2.0

2.5

2004

2005

2006

2007

2008

1Q09*

All U.S. Thrifts

NY Thrifts

• Credit quality

• Margin expansion

• Capital generation

Current Focus

• Limited credit risk

Conservative underwriting, top quality loans, low LTVs

No sub-prime, payment option or negative amortization ARM lending

Non-performing assets: $392 million or 1.86% of total assets

Includes $48 million of troubled debt restructuring (“TDR”)

Includes $166 million of 6 month delinquent loans reviewed and adjusted to
estimated fair value less estimated selling costs

No geographic concentration of NPLs

Net charge-offs to average loans outstanding:

72 basis points, first half 2009 annualized

• Top quality MBS portfolio

96% GSE/agency, balance ‘AAA’ rated

CMOs, seasoned collateral, well structured with minimal extension risk

Average life 1.9 years

Asset Quality Focus

• Conservative underwriting standards

Purchase and non-cash refinance loans:

75% LTV on jumbo loans up to $1 million; 70% on loans > $1 million

Cash/marketable securities reserve requirements

Cash-out refinance loans

60% LTV on refi jumbo loans up to $1 million; 50% on loans > $1 million

Maximum cash out - $100,000

Cash/marketable securities reserve requirements

Asset Quality

Asset Quality Metrics

(1)

Includes home equity loans of $303.2 million.

(2)

Includes $110.8 million of net unamortized premiums and deferred loan costs.

(3)

Does not cross foot due to rounding.

($ in millions)

At or for the Six Months Ended June 30, 2009

Consumer &

Multi-family

Construction

Loan portfolio balance

11,895.1

2,698.1

888.5

50.2

330.2

(1)

15,972.9

(2)

Non-performing loans

287.9

55.3

4.5

8.4

3.9

360.0

% of total loans

1.80

0.35

0.03

0.05

0.02

2.25

Net charge-offs

31.8

23.3

1.6

1.1

1.0

58.8

Net charge-offs to avg. loans

(3)

(annualized)

Other

1-4

Family

Total

CRE

Source: MBA National Delinquency Survey.

1-4 Family Delinquency Ratios: AF vs. MBA

Outsourced

Mtge. Servicing

12/31/05

LI Savings Bank

Acquisition

09/30/98

Geographic Composition of 1- 4 Family NPLs

(1) Includes 29 states and Washington, D.C.

(2) Does not foot due to rounding.

At June 30, 2009

($ in millions)

Total

% of

1-4 Family

Non-Performing

1-4 Family

Non-Performing

Loans as a %

State

Loans

of State Totals

New York

2,904.2

$31.0

1.07

Illinois

1,310.1

30.9

2.36

California

1,235.4

47.9

3.88

Connecticut

1,234.9

24.1

1.95

New Jersey

962.2

28.4

2.95

Virginia

854.7

24.5

2.87

Massachusetts

839.8

14.9

1.77

Maryland

815.2

37.7

4.62

Washington

320.1

2.3

0.72

Florida

289.9

20.6

7.11

All other states

(1)

1,128.6

25.6

2.27

TOTAL

11,895.1

100

(2)

$287.9

100

(2)

2.42

Total

1-4 Family

Loans

Note: LTVs are based on current principal balances and original appraised values.

At June 30, 2009

($ in millions)

1- 4 Family Loan Portfolio Stratification

Non-Performing

Loans as a %

Loans

of Total Loans

Full income portfolio

9,632.1

116.4

1.21

Alt A < 70% LTV

1,189.1

63.0

5.30

Alt A between 70% - 80% LTV

1,073.9

108.5

10.10

Total 1-4 family loans

11,895.1

287.9

2.42

Total

Loans

• Credit quality

• Margin expansion

• Capital generation

Current Focus

Margin expansion opportunities expected due to wider spreads
on mortgage lending coupled with declining liability costs:

2Q09 margin: 2.16%

Cost of deposits for 2Q09: 2.42%

Weighted average rate of deposits at June 30, 2009: 2.30%

Short-term excess liquidity to be reinvested in higher yielding loans

CDs were either issued or repriced during June 2009 with

a weighted average rate of 1.73%.

CDs scheduled to mature within the next three quarters:

3Q09: $1.1 billion with a weighted average rate of 3.16%

4Q09: $2.1 billion with a weighted average rate of 3.41%

1Q10: $2.2 billion with a weighted average rate of 3.20%

Spread on new loans of between 200 – 250 basis points over new funding
costs.

Margin Expansion Opportunities

Note: CDs referenced herein exclude Liquid CDs

• Credit quality

• Margin expansion

• Capital generation

Current Focus

Pre-tax, pre-provision 1H09 operating income of $134
million; $268 million 1H09 annualized^*

• Remain profitable throughout 2009 and 2010

Maintain bank core and tangible regulatory capital > 6%

_° At June 30, 2009:

Core and tangible capital: 6.62%

Risk-based capital: 12.73%

Tier 1 risk-based capital: 11.46%

Internal Capital Generation

* For a reconciliation of GAAP measures to non-GAAP measures, please refer to the table on page 27.

11.46%

At June 30, 2009

(1)

Astoria Federal Savings

* Tier 1 Risk-based capital in excess of 6% required for well-capitalized designation

12.73%

Bank Regulatory Capital⁽¹⁾

6.62%

Core

Tangible

Risk-Based

Tier 1 Risk-Based*

Regulatory Requirement

Excess Capital

• Modest margin expansion

Deployment of excess liquidity

CD’s repricing at lower cost – offset somewhat by lower asset
yields

• Internal tangible capital generation

Continue to remain profitable

• Maintain bank core and tangible regulatory capital > 6%

Outlook for the remainder of 2009

www.astoriafederal.com

LONG ISLAND’S PREMIER COMMUNITY BANK

Addendum

Reconciliation of GAAP Measures to Non-GAAP Measures

(1)

Adjustments relate to the $1.6 million lower of cost or market write-down of premises and equipment held-for-sale recorded in the 2009 second quarter and the $5.3 million charge in the 2009
first quarter and $77.7 million charge in the 2008 third quarter for the other-than-temporary impairment write-down of securities.

(2)

Adjustments relate to the federal deposit insurance special assessment recorded in the 2009 second quarter.

(3)

Non-GAAP pre-tax, pre-provision income is also referred to as pre-tax, pre-provision operating income throughout this presentation.

(In Thousands)

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Net interest income

$220,731

$ -

$ 220,731

$442,749

$ -

$ 442,749

Provision for loan losses

100,000

158,000

Net interest income after provision for loan losses

120,731

284,749

Non-interest income (1)

36,372

6,888

43,260

282

84,584

84,866

Non-interest expense (2)

139,982

(9,851)

130,131

255,031

(9,851)

245,180

Income before income tax expense

17,121

16,739

33,860

30,000

94,435

124,435

Income tax expense

5,625

5,859

11,484

5,515

33,053

38,568

Net income

$ 11,496

$ 10,880

$ 22,376

$ 24,485

$ 61,382

$ 85,867

Net income

$ 11,496

$ 10,880

$ 22,376

$ 24,485

$ 61,382

$ 85,867

Add back:

Income tax expense

5,625

5,859

11,484

5,515

33,053

38,568

Provision for loan losses

100,000

158,000

Pre-tax, pre-provision income (3)

$ 117,121

$ 16,739

$ 133,860

$ 188,000

$ 94,435

$ 282,435

For the Twelve Months Ended

June 30, 2009

Income and expense determined in accordance with GAAP (GAAP measures) excluding the charges and related tax effects detailed in the following table (non-GAAP

measures) provide a meaningful comparison for effectively evaluating Astoria's operating results.

June 30, 2009

For the Six Months Ended

Ownership Profile

Shares Outstanding: 97,058,454

At June 30, 2009

ESOP & Other

Benefit Plans

12%

Officers &

Directors

11%

Retail

Institutions

70%

Solid and Seasoned Management Team

Responsibility

Age

Yrs. in Banking

George L. Engelke, Jr.

Chairman & CEO

Monte N. Redman

President & COO

Alan P. Eggleston

EVP, Secretary & General Counsel

Frank E. Fusco

EVP, Treasurer & CFO

Arnold K. Greenberg

Executive Vice President

Gerard C. Keegan

Vice Chairman & CAO

Gary T. McCann

Executive Vice President

Retail Banking

Mortgage Lending

Chief Financial Officer

Support Services

Chief Operating Officer

Legal

Chief Executive Officer

Other

64%

Deposits

28%

Borrowings

Equity

47%

Securities

45%

Loans

Other

Loans

76%

Securities

17%

Other

At December 31, 1999

Assets

Liabilities & Shareholders’ Equity

Total Assets: $21,101,328

At June 30, 2009

Improving Balance Sheet Quality

($ in thousands)

Total Assets: $22,696,536

Borrowings

51%

Deposits

42%

Equity

Other

By Product Type

* Includes loans originated for sale.

$5.6 B

$1.3 B

$3.8 B

Other

Other ARM

5/1 ARM

3/1 ARM

1H09

2008

2007

2006

2005

2004

2003

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

$3.2 B

$3.3 B

$2.7 B

$3.8 B

1-4 Family Mortgage Loan Originations^*

Net portfolio growth:

($238.3 ) M

+$83.7 M

+$703.2 M

+$456.2 M

+$1.4 B

+$721.3 M

($454.5) M

Weighted Avg. Portfolio

Coupon at Period End

5.26%

5.05%

5.19%

5.48%

5.70%

5.65%

5.52%

* Includes loans originated for sale.

$1.3 B

$3.8 B

1-4 Family Mortgage Loan Originations^*

$2.7 B

$3.3 B

$3.2 B

By Delivery Channel

$0.0

$1.0

$2.0

$3.0

$4.0

2004

2005

2006

2007

2008

1H09

Retail

Broker

Correspondent

Total 1-4 Family Loan Originations

$1.3 Billion ⁽¹⁾

Average LTV: 56%

(1)

Includes $248.0 million originated for sale.

(2)

Includes $167.2 million originated for sale.

Total 1-4 Family Loan Originations

$835.7 Million ⁽²⁾

Average LTV: 56%

For the quarter ended June 30, 2009

New Jersey

Connecticut

15%

Illinois

40%

New York

22%

Other < 5%

Massachusetts

Geographic Composition of 1-4 Family Originations

For the six months ended June 30, 2009

Massachusetts

Other < 5%

17%

New York

44%

Illinois

16%

Connecticut

New Jersey

Percentages do not foot to 100% due to rounding

Total 1-4 Family Loan Portfolio

$11.9 Billion

At June 30, 2009

Geographic Composition of 1-4 Family Loan Portfolio

California

10%

Virginia

New York

24%

Connecticut

10%

Maryland

Illinois

11%

New Jersey

Massachusetts

Other < 5%

14%

Geographic Composition of Multi-family/CRE Portfolio Loans

New York,

New Jersey,

Connecticut

93%

Total Multifamily/CRE Portfolio

$3.6 Billion

At June 30, 2009

Florida

Other

(1) Branches sold in 1999

(2) One satellite office closed in 1997

$11,590

TOTAL

6,600

Long Island Bancorp, Inc.

1998

2,400

The Greater NY Savings Bank

1997

1,800

Fidelity New York ⁽²⁾

1995

280

Whitestone Savings (RTC)

1990

205

Oneonta Federal ⁽¹⁾

1987

Chenango Federal ⁽¹⁾

1984

100

Hastings-on-Hudson Federal

1982

130

Citizens Savings (FSLIC)

1979

$ 50

Metropolitan Federal

1973

Assets

# Branches

Thrift

Year

(in millions)

Acquisition History

* Note: 59% of the households that have a retail CD or Liquid CD account also have a low
cost checking, savings or money market account relationship.

At June 30, 2009

Core Community Deposits

Now/Demand: $1.6B

Rate: 0.06%

*Liquid CDs: $0.9B

Rate: 0.95%

Savings: $1.9B

Rate: 0.40%

Money Market: $0.3B

Rate: 0.64%

*Retail CDs: $8.9B

Rate: 3.31%

Total - $13.6 Billion

Retail CD's

47%

Performance based on Enthusiasm, A ctions and Knowledge

“Sales Oriented and Service Obsessed”

A “needs” based approach to sales rather than “product”
based approach

Highly interactive program – daily and weekly meetings
create a focus that is shared throughout the branch network

Incentives for strong performance, both individual and team

Sales – PEAK Process

Key Findings : Favorably Positioned Against Competitors

• 74% of Astoria customers are highly satisfied

• 72% of Astoria customers are highly likely to recommend

Astoria to friend/family member

• Astoria customers are 25% more likely to net increase their

deposit relationship than are competitor customers

• Satisfaction with the branch is by far the strongest driver of
overall satisfaction – 83% of Astoria customers are highly
satisfied with quality of branch service

Customer Satisfaction

• Education First

Supports lifelong learning, promotes savings and provides meaningful
financial solutions to improve the way our customers live

• Neighborhood Outreach

Supports local organizations that enrich the communities within our market
area

Over 575 community-based organizations and not-for-profit agencies
supported in our markets

• Results/Recognition

Six consecutive “Outstanding” Community Reinvestment Act ratings by OTS

Astoria Federal is an integral part of the fabric of the communities we serve

Community Involvement

Key Initiatives

Employee Stock Ownership Plan

ESOP

Mortgage Bankers Association

MBA

Mortgage-Backed Securities

MBS

Office of Thrift Supervision

OTS

Non-Performing Loan

NPL

Loan-To-Value Ratio

LTV

Government Sponsored Enterprise

GSE

Generally Accepted Accounting Principles

GAAP

Collateralized Mortgage Obligation

CMO

General and Administrative Expense

G&A

Commercial Real Estate

CRE

Adjustable Rate Mortgage

ARM

Glossary

Contact Information

Astoria Financial Corporation

Attn: Investor Relations

One Astoria Federal Plaza

Lake Success, NY 11042

Address:

ir@astoriafederal.com

Email:

(516) 327-7869

Telephone:

www.astoriafederal.com

Web site: