EX-99.1 2 af3782ex991.txt EXHIBIT 99.1 Exhibit 99.1 ASTORIA FINANCIAL CORPORATION ANNOUNCES 8% INCREASE IN THIRD QUARTER EPS TO $0.57 QUARTERLY CASH DIVIDEND OF $0.20 PER COMMON SHARE DECLARED LAKE SUCCESS, N.Y., Oct. 20 /PRNewswire-FirstCall/ -- Astoria Financial Corporation (NYSE: AF) ("Astoria"), the holding company for Astoria Federal Savings and Loan Association ("Astoria Federal"), today reported diluted earnings per share ("EPS") for the quarter ended September 30, 2005 of $0.57, an 8% increase from $0.53 EPS for the 2004 third quarter. Net income for the 2005 third quarter increased to $59.2 million from $58.1 million for the quarter ended September 30, 2004. For the 2005 third quarter, annualized returns on average equity, average tangible equity and average assets were 17.09%, 19.73 % and 1.05%, respectively, compared to 16.82%, 19.42% and 1.02%, respectively, for the comparable 2004 period. For the nine months ended September 30, 2005, net income increased to $176.1 million, or $1.69 EPS, up 4% and 11%, respectively, from $169.0 million, or $1.52 EPS for the comparable 2004 period. For the nine months ended September 30, 2005, annualized returns on average equity, average tangible equity and average assets increased to 17.06%, 19.71%, and 1.02%, respectively, from 16.15%, 18.62% and 1.00%, respectively, for the comparable 2004 period. Third Quarter 2005 Highlights: -- Return on average equity: 17.09%*, up 27 basis points from comparable period last year -- Return on average tangible equity: 19.73%*, up 31 basis points from comparable period last year -- Deposits increased $220 million, or 7% annualized -- Loan portfolio increased $357 million, or 10% annualized - Multifamily/Commercial Real Estate ("CRE") loan portfolios increased $113 million, or 12% annualized, and represent 28% of total loans - One-to-Four Family loan portfolio increased $243 million, or 10% annualized -- Securities portfolio declined $681 million, or 35% annualized -- Borrowings declined $469 million, or 22% annualized -- Repurchased 1.5 million common shares * On an annualized basis Commenting on the 2005 third quarter results, George L. Engelke, Jr., Chairman, President and Chief Executive Officer of Astoria, noted, "The operating environment continued to be challenging during the third quarter with the two-to-five year portion of the yield curve remaining relatively flat. Nevertheless, we continued our strategy of improving the quality of the balance sheet by producing solid deposit and loan growth while significantly reducing securities and borrowings through normal cash flow. These efforts resulted in solid increases in earnings, earnings per share and related returns for the third quarter." Board Declares Quarterly Cash Dividend of $0.20 Per Share The Board of Directors of the Company, at their October 19, 2005 meeting, declared a quarterly cash dividend of $0.20 per common share. The dividend is payable on December 1, 2005 to shareholders of record as of November 15, 2005. This is the forty-second consecutive quarterly cash dividend declared by the Company. Tenth Stock Repurchase Program Continues During the third quarter, Astoria repurchased 1.5 million shares of its common stock at an average cost of $27.83 per share. For the nine month period ended September 30, 2005 Astoria repurchased 4.1 million shares at an average cost of $26.95 per share. To date, under the tenth program that commenced during the 2004 third quarter, Astoria has repurchased 9.5 million shares of the 12 million shares authorized. Hurricane Katrina Disaster Relief Donation Astoria has pledged to donate $341,000 to the American Red Cross Disaster Relief Fund to benefit the Gulf Coast victims of Hurricane Katrina. The donation, which is reflected in 2005 third quarter general and administrative expense, includes a $250,000 corporate leadership donation and related double matching funds of $91,000 in support of director, officer and employee contributions totaling $45,500. Third Quarter and Nine Month 2005 Earnings Summary Net interest income for the quarter ended September 30, 2005 totaled $118.5 million compared to $121.9 million a year ago. For the nine months ended September 30, 2005, net interest income increased 4% to $365.1 million from $349.7 million in the 2004 nine month period. Astoria's net interest margin for the quarter ended September 30, 2005 declined five basis points from the same period a year ago to 2.20%. On a linked quarter basis, the net interest margin decreased just one basis point. Commenting on the net interest margin, Mr. Engelke noted, "Clearly, continuing to reduce the lower yielding securities portfolio and borrowings while growing loans and deposits has helped mitigate margin compression in the current yield curve environment." Non-interest income for the quarter ended September 30, 2005 increased 18% to $28.4 million from $24.0 million for the 2004 third quarter. The increase is primarily due to a $4.9 million increase in mortgage banking income, net, and $2.5 million in customer service fees, primarily offset by the absence of gains on sales of securities and lower other operating income. For the nine months ended September 30, 2005, non-interest income increased to $75.6 million from $74.0 million for the comparable 2004 period. The increase was primarily due to a $5.4 million increase in customer service fees and a $1.2 million increase in mortgage banking income, net, primarily offset by a $4.7 million decline in gains on sales of securities in the 2005 nine month period. The components of mortgage banking income, net, which is included in non-interest income, are detailed below: (Dollars in millions) 3Q05 3Q04 9 Mos05 9 Mos04 --------------------------- -------- -------- -------- -------- Loan servicing fees $ 1.2 $ 1.4 $ 3.8 $ 4.4 Amortization of MSR* (1.3) (1.4) (4.0) (5.2) MSR valuation adjustments 2.7 (1.9) 2.6 1.9 Net gain on sale of loans 1.1 0.7 2.7 2.8 Mortgage banking income (loss), net $ 3.7 $ (1.2) $ 5.1 $ 3.9 * Mortgage servicing rights General and administrative expense ("G&A") for the quarter ended September 30, 2005 declined to $57.9 million from $59.2 million for the comparable 2004 period. The decrease is primarily due to a $3.2 million arbitration award settlement in the 2004 third quarter, partially offset by a $1.9 million increase in the 2005 third quarter G&A related to the previously announced decision to outsource mortgage servicing and additional one-time expenses related to other company-wide cost saving initiatives undertaken to improve future operating efficiency. The one-time expenses incurred in the 2005 third quarter are expected to result in annual net expense savings of approximately $5 million commencing in 2006. For the nine months ended September 30, 2005, G&A totaled $176.0 million compared to $171.6 million for the nine months ended September 30, 2004. The increase is primarily due to an increase in advertising expense and other non- interest expense including charitable contributions and cost-saving initiatives. Balance Sheet Summary Due to the current flattening yield curve environment and lower spread availability, we continued to reduce our non-core business activities during the third quarter of 2005. Total securities for the quarter ended September 30, 2005 declined $680.9 million, or 35% annualized, to $7.1 billion at September 30, 2005, or 31% of total assets, of which $2.0 billion, or 9% of total assets, are categorized as available-for-sale. Borrowings declined $469.3 million in the third quarter of 2005, or 22% annualized, to $8.1 billion at September 30, 2005, representing 36% of total assets. For the nine months ended September 30, 2005 total securities declined $1.6 billion, or 25% annualized, and borrowings declined $1.4 billion, or 19% annualized. Total assets declined $195.4 million from June 30, 2005 and $785.2 million from December 31, 2004 and total $22.6 billion at September 30, 2005. Key balance sheet highlights, reflecting the improvement in the quality of the Company's balance sheet since December 31, 1999, follow:
(Dollars in millions) 12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 ----------------------------------- ---------- ---------- ---------- ---------- ---------- Assets $ 22,700 $ 22,341 $ 22,672 $ 21,702 $ 22,462 Loans $ 10,286 $ 11,422 $ 12,167 $ 12,059 $ 12,687 Securities $ 10,763 $ 9,415 $ 8,013 $ 7,834 $ 8,448 Deposits $ 9,555 $ 10,072 $ 10,904 $ 11,067 $ 11,187 Borrowings $ 11,528 $ 10,324 $ 9,826 $ 8,825 $ 9,632 Change (Dollars in millions) 12/31/04 9/30/05 12/31/99-9/30/05 ----------------------------------- ---------- ---------- ----------------------- Assets $ 23,416 $ 22,631 + --% Loans $ 13,263 $ 14,107 + 37% Securities $ 8,710 $ 7,089 - 34% Deposits $ 12,323 $ 12,806 + 34% Borrowings $ 9,470 $ 8,099 - 30%
During the 2005 third quarter, the 1-4 family mortgage loan portfolio increased $242.5 million, or 10% annualized, to $9.5 billion at September 30, 2005. Originations and purchases totaled $983.4 million for the 2005 third quarter compared to $635.3 million in the year-ago third quarter of which 79% and 77%, respectively, consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans. For the nine months ended September 30, 2005, the 1-4 family mortgage loan portfolio increased $454.8 million, or 7% annualized. Originations and purchases for the 2005 nine month period totaled $2.4 billion compared to $2.2 billion for the comparable 2004 period of which 78% and 73%, respectively, consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans. During the 2005 third quarter, the multifamily and CRE loan portfolio increased $113.0 million, or 12% annualized, to $3.9 billion at September 30, 2005, or 28% of total loans outstanding. Multifamily and CRE originations totaled $270.6 million for the 2005 third quarter compared to $349.8 million for the comparable 2004 period. The average loan-to-value ratio of the multifamily and CRE loan portfolio 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. For the 2005 nine month period, the multifamily and CRE loan portfolio increased $353.8 million, or 13% annualized. Originations totaled $769.0 million for the 2005 nine month period compared to $863.8 million for the comparable 2004 period. At September 30, 2005, non-performing assets increased to $39.2 million, or 0.17% of total assets, from $30.1 million, or 0.13% of total assets, at June 30, 2005. The increase is due to increases in non-performing multifamily loans. The average LTV of the non-performing multifamily loans at September 30, 2005 is 63.7% with an average debt coverage ratio of 1.60. Subsequent to September 30, 2005, $6.8 million of non-performing mortgage loans have become current or have been paid off. Deposits increased $220.4 million from June 30, 2005, or 7% annualized, and total $12.8 billion at September 30, 2005. For the nine months ended September 30, 2005, deposits increased $482.4 million, or 5% annualized. These increases are primarily due to increases in medium-term and Liquid CD accounts. During 2005, we have grown our medium-term CD deposits at a significant discount to alternative funding sources which, in addition to contributing to the management of interest rate risk, permits us to reduce our borrowing levels and continues to produce new customers from our communities, creating relationship development opportunities. For the nine months ended September 30, 2005, $2.5 billion of non-Liquid CDs, with an average rate of 2.70% and an average original maturity of 19 months matured and $2.9 billion of non-Liquid CDs were issued or repriced at an average rate of 3.23% and an average maturity of 15 months. Since the introduction of our Liquid CD account in the 2005 first quarter, balances have grown to $479.4 million at September 30, 2005. Core deposits, including Liquid CDs, at September 30, 2005 total $5.4 billion, with an average rate of just 58 basis points for the 2005 third quarter. Stockholders' equity was $1.4 billion, or 6.13% of total assets at September 30, 2005. Astoria Federal continues to maintain capital ratios in excess of regulatory requirements with core, tangible and risk-based capital ratios of 6.20%, 6.20% and 12.11%, respectively, at September 30, 2005. Future Outlook Commenting on the outlook for the remainder of 2005 and 2006, Mr. Engelke stated, "The operating environment continues to remain challenging as a result of rising short term interest rates and a continuing flattening of the yield curve. Accordingly, we will continue our strategy of shrinking the securities portfolio and borrowings through normal cash flow, while we emphasize deposit and loan growth, all of which will continue to improve the quality of the balance sheet and earnings and will help maintain the margin at current to slightly lower levels. This strategy should better position us to take advantage of more profitable asset growth opportunities when the yield curve steepens." Astoria Financial Corporation, the holding company for Astoria Federal Savings and Loan Association, with assets of $22.6 billion is the sixth largest thrift institution in the United States. Established in 1888, Astoria Federal is the largest thrift depository headquartered in New York with deposits of $12.8 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 Federal 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 Federal originates mortgage loans through its banking offices and loan production offices in New York, an extensive broker network in twenty-three states, primarily the East Coast and the District of Columbia, and through correspondent relationships in forty-four states and the District of Columbia. Earnings Conference Call October 20, 2005 at 3:30 p.m. (ET) The Company, as previously announced, indicated that Mr. Engelke will host an earnings conference call Thursday afternoon, October 20, 2005 at 3:30 p.m. (ET). The toll-free dial-in number is (800) 967-7140. A telephone replay will be available on October 20, 2005 from 7:00 p.m. (ET) through October 28, 2005, 11:59 p.m. (ET). The replay number is (888) 203-1112, passcode: 6615654. The conference call will also be simultaneously webcast on the Company's website http://www.astoriafederal.com and archived for one year. 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 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 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. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, Except Share Data)
At At September 30, December 31, 2005 2004 --------------- --------------- ASSETS Cash and due from banks $ 149,443 $ 138,809 Repurchase agreements 272,505 267,578 Mortgage-backed and other securities available-for-sale 1,976,614 2,406,883 Mortgage-backed and other securities held-to-maturity (fair value of $5,040,661 and $6,306,760, respectively) 5,111,901 6,302,936 Federal Home Loan Bank of New York stock, at cost 123,145 163,700 Loans held-for-sale, net 28,120 23,802 Loans receivable: Mortgage loans, net 13,579,487 12,746,134 Consumer and other loans, net 527,433 517,145 14,106,920 13,263,279 Allowance for loan losses (82,047) (82,758) Total loans receivable, net 14,024,873 13,180,521 Mortgage servicing rights, net 17,214 16,799 Accrued interest receivable 80,251 79,144 Premises and equipment, net 151,183 157,107 Goodwill 185,151 185,151 Bank owned life insurance 378,601 374,719 Other assets 131,677 118,720 TOTAL ASSETS $ 22,630,678 $ 23,415,869 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 12,805,650 $ 12,323,257 Reverse repurchase agreements 6,280,000 7,080,000 Federal Home Loan Bank of New York advances 1,381,000 1,934,000 Other borrowings, net 438,498 455,835 Mortgage escrow funds 164,441 122,088 Accrued expenses and other liabilities 174,345 130,925 TOTAL LIABILITIES 21,243,934 22,046,105 Stockholders' equity: Preferred stock, $1.00 par value; 5,000,000 shares authorized: Series A (1,800,000 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; 166,494,888 shares issued; and 106,929,850 and 110,304,669 shares outstanding, respectively) 1,665 1,665 Additional paid-in capital 821,265 811,777 Retained earnings 1,735,962 1,623,571 Treasury stock ( 59,565,038 and 56,190,219 shares, at cost, respectively) (1,110,830) (1,013,726) Accumulated other comprehensive loss (37,452) (28,592) Unallocated common stock held by ESOP (6,513,854 and 6,802,146 shares, respectively) (23,866) (24,931) TOTAL STOCKHOLDERS' EQUITY 1,386,744 1,369,764 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 22,630,678 $ 23,415,869
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Share Data)
For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------------------------- ------------------------------- 2005 2004 2005 2004 -------------- -------------- -------------- -------------- Interest income: Mortgage loans: One-to-four family $ 115,118 $ 105,299 $ 339,598 $ 320,854 Multi-family, commercial real estate and construction 60,951 56,617 177,447 164,882 Consumer and other loans 8,199 5,385 22,455 15,073 Mortgage-backed and other securities 82,072 95,650 264,520 273,590 Federal funds sold and repurchase agreements 1,056 325 3,866 701 Federal Home Loan Bank of New York stock 1,577 804 4,400 2,637 Total interest income 268,973 264,080 812,286 777,737 Interest expense: Deposits 71,903 62,116 203,928 173,248 Borrowed funds 78,534 80,106 243,262 254,802 Total interest expense 150,437 142,222 447,190 428,050 Net interest income 118,536 121,858 365,096 349,687 Provision for loan losses - - - - Net interest income after provision for loan losses 118,536 121,858 365,096 349,687 Non-interest income: Customer service fees 17,798 15,316 49,049 43,619 Other loan fees 1,397 1,186 3,643 3,636 Net gain on sales of securities - 2,279 - 4,651 Mortgage banking income (loss), net 3,703 (1,229) 5,067 3,904 Income from bank owned life insurance 4,070 4,208 12,435 12,886 Other 1,404 2,276 5,446 5,345 Total non-interest income 28,372 24,036 75,640 74,041 Non-interest expense: General and administrative: Compensation and benefits 31,060 30,500 91,817 91,546 Occupancy, equipment and systems 15,978 15,943 47,790 48,434 Federal deposit insurance premiums 432 439 1,327 1,329 Advertising 1,765 1,652 7,540 5,062 Other 8,680 10,634 27,516 25,200 Total non-interest expense 57,915 59,168 175,990 171,571 Income before income tax expense 88,993 86,726 264,746 252,157 Income tax expense 29,814 28,619 88,692 83,136 Net income $ 59,179 $ 58,107 $ 176,054 $ 169,021 Basic earnings per common share $ 0.59 $ 0.54 $ 1.72 $ 1.55 Diluted earnings per common share $ 0.57 $ 0.53 $ 1.69 $ 1.52 Basic weighted average common shares 101,058,022 107,072,907 102,149,797 109,118,145 Diluted weighted average common and common equivalent shares 103,088,233 108,728,370 104,069,045 110,970,129
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, ------------------------------- ------------------------------- 2005 2004 2005 2004 -------------- -------------- -------------- -------------- Selected Returns and Financial Ratios (annualized) Return on average stockholders' equity 17.09% 16.82% 17.06% 16.15% Return on average tangible stockholders' equity (1) 19.73 19.42 19.71 18.62 Return on average assets 1.05 1.02 1.02 1.00 General and administrative expense to average assets 1.02 1.04 1.02 1.02 Efficiency ratio (2) 39.42 40.56 39.93 40.49 Net interest rate spread (3) 2.11 2.17 2.13 2.09 Net interest margin (4) 2.20 2.25 2.21 2.17 Asset Quality Data (dollars in thousands) Non-performing loans/total loans 0.27% 0.21% Non-performing loans/total assets 0.17 0.12 Non-performing assets/total assets 0.17 0.12 Allowance for loan losses/non-performing loans 216.39 306.78 Allowance for loan losses/non-accrual loans 219.22 310.82 Allowance for loan losses/total loans 0.58 0.65 Net charge-offs to average loans outstanding (annualized) 0.01% 0.00% 0.01 0.00 Non-performing assets $ 39,213 $ 27,369 Non-performing loans 37,916 26,991 Loans 90 days past maturity but still accruing interest 490 351 Non-accrual loans 37,426 26,640 Net charge-offs $ 472 $ 15 711 318 Capital Ratios (Astoria Federal) Tangible 6.20% 6.85% Core 6.20 6.85 Risk-based 12.11 14.16 Other Data Cash dividends paid per common share $ 0.20 $ 0.17 $ 0.60 $ 0.50 Dividend payout ratio 35.09% 32.08% 35.50% 32.89% Book value per share (5) $ 13.81 $ 13.12 Tangible book value per share (6) 11.97 11.37 Average equity/average assets 6.12% 6.08% 5.97% 6.20% Mortgage loans serviced for others (in thousands) $ 1,548,991 $ 1,713,683 Full time equivalent employees 1,760 1,863
(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 share represents stockholders' equity divided by outstanding shares, excluding unallocated Employee Stock Ownership Plan, or ESOP, shares. (6) Tangible book value per share represents stockholders' equity less goodwill divided by outstanding shares, excluding unallocated ESOP shares. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES AVERAGE BALANCE SHEETS (Dollars in Thousands)
For the Three Months Ended September 30, 2005 ------------------------------------------------ Average Average Yield/ Balance Interest Cost -------------- -------------- -------------- (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $ 9,471,378 $ 115,118 4.86% Multi-family, commercial real estate and construction 3,930,711 60,951 6.20 Consumer and other loans (1) 529,622 8,199 6.19 Total loans 13,931,711 184,268 5.29 Mortgage-backed and other securities (2) 7,378,492 82,072 4.45 Federal funds sold and repurchase agreements 122,585 1,056 3.45 Federal Home Loan Bank stock 123,199 1,577 5.12 Total interest-earning assets 21,555,987 268,973 4.99 Goodwill 185,151 Other non-interest-earning assets 878,590 Total assets $ 22,619,728 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $ 2,710,873 2,744 0.40 Money market 767,711 1,866 0.97 NOW and demand deposit 1,565,633 233 0.06 Liquid certificates of deposit 393,735 3,053 3.10 Total core deposits 5,437,952 7,896 0.58 Certificates of deposit 7,222,728 64,007 3.54 Total deposits 12,660,680 71,903 2.27 Borrowed funds 8,247,037 78,534 3.81 Total interest-bearing liabilities 20,907,717 150,437 2.88 Non-interest-bearing liabilities 326,857 Total liabilities 21,234,574 Stockholders' equity 1,385,154 Total liabilities and stockholders' equity $ 22,619,728 Net interest income/net interest rate spread $ 118,536 2.11% Net interest-earning assets/net interest margin $ 648,270 2.20% Ratio of interest-earning assets to interest-bearing liabilities 1.03x
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 and other securities (2) 8,763,907 95,650 4.37 Federal funds sold and repurchase agreements 94,472 325 1.38 Federal Home Loan Bank stock 149,826 804 2.15 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 Liquid certificates of deposit - - - Total core deposits 5,594,422 4,723 0.34 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
(1) Mortgage loans 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. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES AVERAGE BALANCE SHEETS (Dollars in Thousands)
For the Nine Months Ended September 30, 2005 ------------------------------------------------ Average Average Yield/ Balance Interest Cost -------------- -------------- -------------- (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $ 9,362,018 $ 339,598 4.84% Multi-family, commercial real estate and construction 3,813,944 177,447 6.20 Consumer and other loans (1) 527,298 22,455 5.68 Total loans 13,703,260 539,500 5.25 Mortgage-backed and other securities (2) 7,962,719 264,520 4.43 Federal funds sold and repurchase agreements 184,637 3,866 2.79 Federal Home Loan Bank stock 130,618 4,400 4.49 Total interest-earning assets 21,981,234 812,286 4.93 Goodwill 185,151 Other non-interest-earning assets 863,831 Total assets $ 23,030,216 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $ 2,802,298 8,417 0.40 Money market 843,232 5,825 0.92 NOW and demand deposit 1,574,350 698 0.06 Liquid certificates of deposit 288,023 5,998 2.78 Total core deposits 5,507,903 20,938 0.51 Certificates of deposit 7,054,729 182,990 3.46 Total deposits 12,562,632 203,928 2.16 Borrowed funds 8,757,579 243,262 3.70 Total interest-bearing liabilities 21,320,211 447,190 2.80 Non-interest-bearing liabilities 334,032 Total liabilities 21,654,243 Stockholders' equity 1,375,973 Total liabilities and stockholders' equity $ 23,030,216 Net interest income/net interest rate spread $ 365,096 2.13% Net interest-earning assets/net interest margin $ 661,023 2.21% Ratio of interest-earning assets to interest-bearing liabilities 1.03x
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 and other securities (2) 8,489,863 273,590 4.30 Federal funds sold and repurchase agreements 84,662 701 1.10 Federal Home Loan Bank stock 177,601 2,637 1.98 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 Liquid certificates of deposit - - - Total core deposits 5,629,619 14,225 0.34 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
(1) Mortgage loans 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. SOURCE Astoria Financial Corporation -0- 10/20/2005 /CONTACT: Peter J. Cunningham, First Vice President, Investor Relations of Astoria Financial Corporation, +1-516-327-7877, ir@astoriafederal.com/ -