AF Astoria Financial Corp. (delisted)

Astoria Financial Corporation Announces 6% Increase in Second Quarter EPS to $0.55 Quarterly Cash Dividend of $0.20 Per Common Share Declared LAKE SUCCESS, N.Y., July 21 /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 June 30, 2005 of $0.55, a 6% increase from $0.52 EPS for the 2004 second quarter. Net income for the 2005 second quarter totaled $57.4 million compared to $57.5 million for the quarter ended June 30, 2004. Included in 2005 net income and EPS is a mortgage servicing rights ("MSR") impairment charge of $2.5 million ($1.7 million after-tax, or $0.02 per share) compared to a recovery of $5.2 million ($3.5 million after-tax, or $0.03 per share) in the 2004 second quarter. (Excluding the MSR adjustments in the 2005 and 2004 second quarters, EPS would have been $0.57 and $0.49, respectively.) For the 2005 second quarter, annualized returns on average equity, average tangible equity and average assets were 16.66%, 19.24% and 1.00%, respectively, compared to 16.55%, 19.09% and 1.03%, respectively, for the comparable 2004 period. For the six months ended June 30, 2005, net income totaled $116.9 million, or $1.12 EPS, up 5% and 13%, respectively, from $110.9 million, or $0.99 EPS for the comparable 2004 period. For the six months ended June 30, 2005, annualized returns on average equity, average tangible equity and average assets increased to 17.02%, 19.68%, and 1.01%, respectively, from 15.85%, 18.27% and 0.99%, respectively, for the comparable 2004 period. Second Quarter 2005 Highlights: - Net interest margin: 2.21%, up 8 basis points from comparable period last year - Return on average equity: 16.66%, up 11 basis points from comparable period last year - Return on average tangible equity: 19.24%, up 15 basis points from comparable period last year - Loan portfolio increased $190 million, or 6% annualized -- Multifamily/Commercial Real Estate ("CRE") loan portfolios increased $131 million, or 14% annualized, and represent 27% of total loans -- One-to-Four Family loan portfolio increased $35 million, or 2% annualized - Securities portfolio declined $553 million, or 27% annualized - Borrowings declined $413 million, or 18% annualized - Assets declined $424 million, or 7% annualized - Repurchased 1.5 million common shares - Non-performing assets: $30.1 million, or 0.13% of total assets Commenting on the 2005 second quarter results, George L. Engelke, Jr., Chairman, President and Chief Executive Officer of Astoria, noted, "While our financial results were solid, they were tempered by a $2.5 million ($1.7 million after-tax, or $0.02 per share) MSR impairment charge due to the decline in long term interest rates at the end of the second quarter. Overall, the operating environment continued to be challenging as the yield curve flattened, with short term interest rates increasing and long term interest rates decreasing. In light of this, we continued our strategy of reducing the securities portfolio and borrowings while growing the total loan portfolio even as increased refinance activity during the quarter restrained growth in the one-to-four family loan portfolio. While deposits grew modestly, we are pleased with the continued growth in our Liquid CD accounts as well as our success in increasing and extending medium-term retail CDs in anticipation of increasing interest rates." Board Declares Quarterly Cash Dividend of $0.20 Per Share The Board of Directors of the Company, at their July 20, 2005 meeting, declared a quarterly cash dividend of $0.20 per common share. The dividend is payable on September 1, 2005 to shareholders of record as of August 15, 2005. This is the forty-first consecutive quarterly cash dividend declared by the Company. Tenth Stock Repurchase Program Continues During the second quarter, Astoria repurchased 1.5 million shares of its common stock at an average cost of $27.14 per share. For the six month period ended June 30, 2005 Astoria repurchased 2.6 million shares. To date, under the tenth program that commenced during the 2004 third quarter, Astoria has repurchased 7.8 million shares of the 12 million shares authorized. Second Quarter 2005 Earnings Summary Net interest income for the quarter ended June 30, 2005 increased 7% to $121.3 million from $113.3 million a year ago. For the six months ended June 30, 2005, net interest income increased 8% to $246.6 million from $227.8 million in the 2004 six month period. Astoria's net interest margin for the quarter ended June 30, 2005 increased eight basis points from a year ago to 2.21%, primarily due to an increase in the yield on average earning assets resulting from lower premium amortization expense in the 2005 second quarter. On a linked quarter basis, the net interest margin decreased three basis points primarily due to one extra day of interest expense in the second quarter. Commenting on the net interest margin, Mr. Engelke noted, "Clearly, continuing to reduce the lower yielding securities portfolio and borrowings has helped mitigate margin compression in the current yield curve environment." Non-interest income for the quarter ended June 30, 2005 totaled $22.5 million compared to $27.9 million for the 2004 second quarter. The decline is primarily due to a $7.9 million decrease in mortgage banking income, net, offset by a $1.8 million increase in customer service fees. For the six months ended June 30, 2005, non-interest income totaled $47.3 million compared to $50.0 million for the comparable 2004 period. The decline was primarily due to decreases in mortgage banking income, net, of $3.7 million and gains on sale of securities of $2.4 million, offset by a $2.9 million increase in customer service fees. The components of mortgage banking income, net, which is included in non- interest income, are detailed below: (Dollars in millions) 2Q05 2Q04 1H05 1H04 Loan servicing fees $ 1.3 $ 1.5 $ 2.6 $3.0 Amortization of MSR (1.3) (1.8) (2.7) (3.8) MSR valuation adjustments (2.5) 5.2 (0.1) 3.8 Net gain on sale of loans 0.9 1.4 1.6 2.1 Mortgage banking income, net $(1.6) $ 6.3 $1.4 $ 5.1 General and administrative expense ("G&A") for the quarter ended June 30, 2005 totaled $57.6 million compared to $55.4 million for the comparable 2004 period. The increase is primarily due to an increase in goodwill litigation expense to $2.0 million from $874,000 in last year's second quarter. On a linked quarter basis, G&A declined $2.9 million, primarily due to reduced advertising expense and lower compensation and benefits expense. For the six months ended June 30, 2005, G&A totaled $118.1 million compared to $112.4 million for the comparable six months ended June 30, 2004. The increase was primarily due to an increase in goodwill litigation expense to $4.7 million from $1.7 million in the 2004 six month period and increased advertising expense. 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 second quarter of 2005. Total securities for the quarter ended June 30, 2005 declined $552.8 million, or 27% annualized, to $7.8 billion at June 30, 2005, representing 34% of total assets, of which $2.1 billion, or 9% of total assets, are categorized as available-for-sale. Borrowings declined in the second quarter of 2005 by $412.6 million, or 18% annualized, to $8.6 billion at June 30, 2005, representing 38% of total assets. For the six months ended June 30, 2005 total securities declined $940.4 million, or 22% annualized. and borrowings declined $901.0 million, or 19% annualized. Total assets declined $424.4 million from March 31, 2005 and $589.8 million from December 31, 2004 and total $22.8 billion at June 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 12/31/04 Assets $22,700 $22,341 $22,672 $21,702 $22,462 $23,416 Loans $10,286 $11,422 $12,167 $12,059 $12,687 $13,263 MBS & Other Sec. $10,763 $9,415 $8,013 $7,834 $8,448 $8,710 Deposits $9,555 $10,072 $10,904 $11,067 $11,187 $12,323 Core Deposits (1) $4,625 $4,922 $5,743 $5,914 $5,685 $5,475 Borrowings $11,528 $10,324 $9,826 $8,825 $9,632 $9,470 Change 6/30/05 12/31/99-6/30/05 Assets $22,826 + 1% Loans $13,750 + 34% MBS & Other Sec. $7,769 - 28% Deposits $12,585 + 32% Core Deposits (1) $5,495 + 19% Borrowings $8,569 - 26% (1) Includes savings, money market, checking and Liquid CD accounts During the 2005 second quarter, the 1-4 family mortgage loan portfolio increased $34.7 million, or 2% annualized, to $9.3 billion at June 30, 2005. Originations and purchases totaled $707.1 million for the 2005 second quarter compared to $933.7 million in the year-ago second quarter. 78% of the 2005 second quarter production consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans. For the six months ended June 30, 2005, the 1-4 family mortgage loan portfolio increased $212.3 million, or 5% annualized. Originations and purchases for the 2005 six month period totaled $1.4 billion compared to $1.6 billion in the year-ago six month period. During the 2005 second quarter, the multifamily and CRE loan portfolio increased $130.5 million, or 14% annualized, to $3.7 billion at June 30, 2005. Originations totaled $241.9 million for the 2005 second quarter compared to $274.0 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 six month period, the multifamily and CRE loan portfolio increased $240.8 million, or 14% annualized. Originations totaled $498.5 million for the 2005 six month period compared to $514.1 million for the comparable 2004 period. At June 30, 2005, non-performing loans declined to $28.7 million, or 0.13% of total assets, from $29.7 million, or 0.13% of total assets, at March 31, 2005. Net charge-offs for the 2005 second quarter totaled $211,000. For the six months ended June 30, 2005, net charge-offs totaled $239,000, or an annualized rate of less than one basis point of the average total loans outstanding. The ratio of the allowance for loan losses to non-performing loans at June 30, 2005 was 288%. Deposits for the quarter ended June 30, 2005 increased slightly and totaled $12.6 billion at June 30, 2005. During the second quarter, we continued to grow our medium-term CD deposits at a significant discount to alternative funding sources that, in addition to contributing to the management of interest rate risk, permit us to reduce our borrowing levels and continue to produce new customers from our communities, creating relationship development opportunities. During the 2005 second quarter, $804.4 million of non-Liquid CDs, with an average rate of 2.54% and an average original maturity of 17 months, matured and $839.4 million of non-Liquid CDs were issued or repriced at an average rate of 3.09% and an average maturity of 16 months. For the six months ended June 30, 2005, deposits increased $262.0 million, or 4% annualized. The increase was due, in part, to an increase in Liquid CD accounts and medium term CD accounts. At June 30, 2005 core deposits totaled $5.5 billion with an average cost of just 50 basis points for the second quarter. For the six months ended June 30, 2005, $1.8 billion of non-Liquid CDs, with an average rate of 2.85% and an average original maturity of 21 months matured and $1.9 billion of non-Liquid CDs were issued or repriced at an average rate of 3.04% and an average maturity of 18 months. Stockholders' equity was $1.4 billion, or 6.10% of total assets at June 30, 2005. Astoria Federal continues to maintain capital ratios in excess of regulatory requirements with core, tangible and risk-based capital ratios of 6.71%, 6.71% and 13.33%, respectively, at June 30, 2005. Future Outlook Commenting on the outlook for the second half of 2005, 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 in the second half of 2005. 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 $22.8 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 $12.6 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 July 21, 2005 at 3:30 p.m. (ET) The Company, as previously announced, indicated that Mr. Engelke will host an earnings conference call Thursday afternoon, July 21, 2005 at 3:30 p.m. (ET). The toll-free dial-in number is (800) 967-7140. A telephone replay will be available on July 21, 2005 from 7:00 p.m. (ET) through July 29, 2005, 11:59 p.m. (ET). The replay number is (888) 203-1112, passcode: 6447378. 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. Tables Follow ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, Except Share Data) At At June 30, December 31, 2005 2004 ASSETS Cash and due from banks $142,796 $138,809 Repurchase agreements 154,264 267,578 Mortgage-backed and other securities available-for-sale 2,146,528 2,406,883 Mortgage-backed and other securities held-to-maturity (fair value of $5,602,104 and $6,306,760, respectively) 5,622,868 6,302,936 Federal Home Loan Bank of New York stock, at cost 123,145 163,700 Loans held-for-sale, net 31,080 23,802 Loans receivable: Mortgage loans, net 13,218,349 12,746,134 Consumer and other loans, net 531,766 517,145 13,750,115 13,263,279 Allowance for loan losses (82,519) (82,758) Total loans receivable, net 13,667,596 13,180,521 Mortgage servicing rights, net 15,415 16,799 Accrued interest receivable 80,032 79,144 Premises and equipment, net 153,313 157,107 Goodwill 185,151 185,151 Bank owned life insurance 374,532 374,719 Other assets 129,329 118,720 TOTAL ASSETS $22,826,049 $23,415,869 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $12,585,227 $12,323,257 Reverse repurchase agreements 6,980,000 7,080,000 Federal Home Loan Bank of New York advances 1,129,000 1,934,000 Other borrowings, net 459,796 455,835 Mortgage escrow funds 139,359 122,088 Accrued expenses and other liabilities 140,026 130,925 TOTAL LIABILITIES 21,433,408 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 108,208,696 and 110,304,669 shares outstanding, respectively) 1,665 1,665 Additional paid-in capital 817,964 811,777 Retained earnings 1,697,453 1,623,571 Treasury stock (58,286,192 and 56,190,219 shares, at cost, respectively) (1,073,435) (1,013,726) Accumulated other comprehensive loss (26,795) (28,592) Unallocated common stock held by ESOP (6,608,064 and 6,802,146 shares, respectively) (24,211) (24,931) TOTAL STOCKHOLDERS' EQUITY 1,392,641 1,369,764 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,826,049 $23,415,869 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Share Data) For the Three Months Ended For the Six Months Ended June 30, June 30, 2005 2004 2005 2004 Interest income: Mortgage loans: One-to-four family $112,898 $104,205 $224,480 $215,555 Multi-family, commercial real estate and construction 58,300 54,634 116,496 108,265 Consumer and other loans 7,475 4,798 14,256 9,688 Mortgage-backed and other securities 88,526 87,809 182,448 177,940 Federal funds sold and repurchase agreements 1,361 222 2,810 376 Federal Home Loan Bank of New York stock 1,650 895 2,823 1,833 Total interest income 270,210 252,563 543,313 513,657 Interest expense: Deposits 67,065 56,902 132,025 111,132 Borrowed funds 81,798 82,345 164,728 174,696 Total interest expense 148,863 139,247 296,753 285,828 Net interest income 121,347 113,316 246,560 227,829 Provision for loan losses - - - - Net interest income after provision for loan losses 121,347 113,316 246,560 227,829 Non-interest income: Customer service fees 16,305 14,554 31,251 28,303 Other loan fees 1,082 1,188 2,246 2,450 Net gain on sales of securities - - - 2,372 Mortgage banking (loss) income, net (1,582) 6,251 1,364 5,133 Income from bank owned life insurance 4,190 4,228 8,365 8,678 Other 2,531 1,645 4,042 3,069 Total non-interest income 22,526 27,866 47,268 50,005 Non-interest expense: General and administrative: Compensation and benefits 29,967 29,582 60,757 61,046 Occupancy, equipment and systems 15,787 15,774 31,812 32,491 Federal deposit insurance premiums 447 441 895 890 Advertising 1,870 1,701 5,775 3,410 Other 9,492 7,862 18,836 14,566 Total non-interest expense 57,563 55,360 118,075 112,403 Income before income tax expense 86,310 85,822 175,753 165,431 Income tax expense 28,914 28,321 58,878 54,517 Net income $57,396 $57,501 $116,875 $110,914 Basic earnings per common share $0.56 $0.53 $1.14 $1.01 Diluted earnings per common share $0.55 $0.52 $1.12 $0.99 Basic weighted average common shares 102,253,984 109,429,328 102,704,734 110,152,001 Diluted weighted average common and common equivalent shares 104,184,538 111,189,914 104,568,500 112,102,245 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES SELECTED FINANCIAL RATIOS AND OTHER DATA At or For the At or For the Three Months Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 Selected Returns and Financial Ratios (annualized) Return on average stockholders' equity 16.66 % 16.55 % 17.02 % 15.85 % Return on average tangible stockholders' equity (1) 19.24 19.09 19.68 18.27 Return on average assets 1.00 1.03 1.01 0.99 General and administrative expense to average assets 1.00 0.99 1.02 1.00 Efficiency ratio (2) 40.01 39.21 40.19 40.46 Net interest rate spread (3) 2.12 2.06 2.14 2.06 Net interest margin (4) 2.21 2.13 2.22 2.14 Asset Quality Data (dollars in thousands) Non-performing loans/total loans 0.21 % 0.21 % Non-performing loans/total assets 0.13 0.12 Non-performing assets/total assets 0.13 0.12 Allowance for loan losses/non-performing loans 287.86 313.02 Allowance for loan losses/non-accrual loans 308.11 319.43 Allowance for loan losses/total loans 0.60 0.66 Net charge-offs to average loans outstanding (annualized) 0.01 % 0.00 % 0.00 0.00 Non-performing assets $30,080 $27,133 Non-performing loans 28,666 26,458 Loans 90 days past maturity but still accruing interest 1,884 531 Non-accrual loans 26,782 25,927 Net charge-offs $211 $148 239 303 Capital Ratios (Astoria Federal) Tangible 6.71 % 7.11 % Core 6.71 7.11 Risk-based 13.33 14.69 Other Data Cash dividends paid per common share $0.20 $0.17 $0.40 $0.33 Dividend payout ratio 36.36 % 32.69 % 35.71 % 33.33 % Book value per common share (5) $13.71 $12.67 Tangible book value per common share (6) 11.88 10.96 Average equity/average assets 5.98 % 6.21 % 5.91 % 6.25 % Mortgage loans serviced for others (in thousands) $1,605,071 $1,759,085 Full time equivalent employees 1,864 1,926 (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 June 30, 2005 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $9,342,312 $112,898 4.83 % Multi-family, commercial real estate and construction 3,827,458 58,300 6.09 Consumer and other loans (1) 529,679 7,475 5.64 Total loans 13,699,449 178,673 5.22 Mortgage-backed and other securities (2) 7,997,687 88,526 4.43 Federal funds sold and repurchase agreements 189,058 1,361 2.88 Federal Home Loan Bank stock 126,518 1,650 5.22 Total interest-earning assets 22,012,712 270,210 4.91 Goodwill 185,151 Other non-interest-earning assets 851,531 Total assets $23,049,394 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,827,699 2,831 0.40 Money market 848,457 2,037 0.96 NOW and demand deposit 1,597,270 235 0.06 Liquid certificates of deposit 291,669 1,872 2.57 Total core deposits 5,565,095 6,975 0.50 Certificates of deposit 7,004,979 60,090 3.43 Total deposits 12,570,074 67,065 2.13 Borrowed funds 8,757,467 81,798 3.74 Total interest-bearing liabilities 21,327,541 148,863 2.79 Non-interest-bearing liabilities 343,422 Total liabilities 21,670,963 Stockholders' equity 1,378,431 Total liabilities and stockholders' equity $23,049,394 Net interest income/net interest rate spread $121,347 2.12 % Net interest-earning assets/net interest margin $685,171 2.21 % Ratio of interest-earning assets to interest-bearing liabilities 1.03x For the Three Months Ended June 30, 2004 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $8,862,057 $104,205 4.70 % Multi-family, commercial real estate and construction 3,350,010 54,634 6.52 Consumer and other loans (1) 466,745 4,798 4.11 Total loans 12,678,812 163,637 5.16 Mortgage-backed and other securities (2) 8,337,650 87,809 4.21 Federal funds sold and repurchase agreements 94,515 222 0.94 Federal Home Loan Bank stock 155,471 895 2.30 Total interest-earning assets 21,266,448 252,563 4.75 Goodwill 185,151 Other non-interest-earning assets 938,614 Total assets $22,390,213 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $3,003,085 2,988 0.40 Money market 1,119,810 1,510 0.54 NOW and demand deposit 1,556,821 230 0.06 Liquid certificates of deposit - - - Total core deposits 5,679,716 4,728 0.33 Certificates of deposit 6,018,057 52,174 3.47 Total deposits 11,697,773 56,902 1.95 Borrowed funds 8,989,389 82,345 3.66 Total interest-bearing liabilities 20,687,162 139,247 2.69 Non-interest-bearing liabilities 312,905 Total liabilities 21,000,067 Stockholders' equity 1,390,146 Total liabilities and stockholders' equity $22,390,213 Net interest income/net interest rate spread $113,316 2.06 % Net interest-earning assets/net interest margin $579,286 2.13 % 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 Six Months Ended June 30, 2005 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $9,306,432 $224,480 4.82 % Multi-family, commercial real estate and construction 3,754,593 116,496 6.21 Consumer and other loans (1) 526,117 14,256 5.42 Total loans 13,587,142 355,232 5.23 Mortgage-backed and other securities (2) 8,259,673 182,448 4.42 Federal funds sold and repurchase agreements 216,177 2,810 2.60 Federal Home Loan Bank stock 134,388 2,823 4.20 Total interest-earning assets 22,197,380 543,313 4.90 Goodwill 185,151 Other non-interest-earning assets 858,133 Total assets $23,240,664 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,848,793 5,673 0.40 Money market 881,618 3,959 0.90 NOW and demand deposit 1,578,781 465 0.06 Liquid certificates of deposit 234,291 2,945 2.51 Total core deposits 5,543,483 13,042 0.47 Certificates of deposit 6,969,312 118,983 3.41 Total deposits 12,512,795 132,025 2.11 Borrowed funds 9,017,082 164,728 3.65 Total interest-bearing liabilities 21,529,877 296,753 2.76 Non-interest-bearing liabilities 337,679 Total liabilities 21,867,556 Stockholders' equity 1,373,108 Total liabilities and stockholders' equity $23,240,664 Net interest income/net interest rate spread $246,560 2.14 % Net interest-earning assets/net interest margin $667,503 2.22 % Ratio of interest-earning assets to interest-bearing liabilities 1.03x For the Six Months Ended June 30, 2004 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $8,951,550 $215,555 4.82 % Multi-family, commercial real estate and construction 3,301,619 108,265 6.56 Consumer and other loans (1) 458,421 9,688 4.23 Total loans 12,711,590 333,508 5.25 Mortgage-backed and other securities (2) 8,351,335 177,940 4.26 Federal funds sold and repurchase agreements 79,704 376 0.94 Federal Home Loan Bank stock 191,641 1,833 1.91 Total interest-earning assets 21,334,270 513,657 4.82 Goodwill 185,151 Other non-interest-earning assets 891,331 Total assets $22,410,752 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,981,642 5,933 0.40 Money market 1,153,993 3,118 0.54 NOW and demand deposit 1,511,777 451 0.06 Liquid certificates of deposit - - - Total core deposits 5,647,412 9,502 0.34 Certificates of deposit 5,831,038 101,630 3.49 Total deposits 11,478,450 111,132 1.94 Borrowed funds 9,230,800 174,696 3.79 Total interest-bearing liabilities 20,709,250 285,828 2.76 Non-interest-bearing liabilities 301,887 Total liabilities 21,011,137 Stockholders' equity 1,399,615 Total liabilities and stockholders' equity $22,410,752 Net interest income/net interest rate spread $227,829 2.06 % Net interest-earning assets/net interest margin $625,020 2.14 % 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. DATASOURCE: Astoria Financial Corporation CONTACT: Peter J. Cunningham, First Vice President, Investor Relations, +1-516-327-7877, Web site: http://www.astoriafederal.com/ http://ir.astoriafederal.com/ Company News On-Call: http://www.prnewswire.com/comp/104529.html

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