Quarterly Cash Dividend Increased 20% to $0.24 Per Share LAKE
SUCCESS, N.Y., Jan. 26 /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 $57.7 million, or $0.57 diluted earnings per
share ("EPS"), for the quarter ended December 31, 2005, compared to
$50.5 million ($60.1 million operating earnings), or $0.48 EPS
($0.57 operating EPS), for the 2004 fourth quarter. For the 2005
fourth quarter, annualized returns on average equity, average
tangible equity and average assets were 16.97%, 19.64% and 1.03%,
respectively, compared to 14.75% (17.54% on an operating basis),
17.05% (20.28% on an operating basis) and 0.87% (1.04% on an
operating basis), respectively, for the comparable 2004 period. For
the year ended December 31, 2005, net income totaled $233.8
million, or $2.26 EPS, compared to $219.5 million ($229.1 million
operating earnings), or $2.00 EPS ($2.09 operating EPS) for the
comparable 2004 period. For the year ended December 31, 2005,
returns on average equity, average tangible equity and average
assets totaled 17.06%, 19.72%, and 1.02%, respectively, compared to
15.81% (16.50% on an operating basis), 18.25% (19.04% on an
operating basis) and 0.97% (1.01% on an operating basis),
respectively, for the comparable 2004 period. Operating earnings,
operating EPS and operating returns for the 2004 fourth quarter and
full year reflect net income and EPS determined in accordance with
generally accepted accounting principles ("GAAP") adjusted to
exclude the effect of a fourth quarter other-than-temporary
impairment after- tax non-cash charge of $9.6 million, or $0.09
EPS. For a reconciliation of 2004 operating earnings and operating
EPS to 2004 GAAP net income and EPS, please refer to the table on
page 13. 2005 Fourth Quarter Financial Highlights: -- Loan
portfolio increased $285 million, or 8% annualized -
Multifamily/Commercial Real Estate ("CRE") loan portfolio increased
$45 million, or 5% annualized - One-to-Four Family loan portfolio
increased $248 million, or 10% annualized -- Securities portfolio
decreased $516 million, or 29% annualized -- Borrowings decreased
$162 million, or 8% annualized -- Assets decreased $250 million, or
4% annualized -- Repurchased 2.5 million shares 2005 Full Year
Financial Highlights: -- Loan portfolio increased $1.1 billion, or
9%, to $14.4 billion at December 31, 2005 - Multifamily/CRE loan
portfolio increased $399 million, or 11%, to $3.9 billion at
December 31, 2005 and represents 27% of total loans - One-to-Four
Family loan portfolio increased $703 million, or 8%, to $9.8
billion at December 31, 2005 -- Securities portfolio decreased $2.1
billion, or 25%, to $6.6 billion at December 31, 2005 -- Deposits
increased $487 million, or 4%, to $12.8 billion at December 31,
2005 -- Borrowings decreased $1.5 billion, or 16%, to $7.9 billion
at December 31, 2005 -- Assets decreased $1.0 billion, or 4%, to
$22.4 billion at December 31, 2005 -- Repurchased 6.6 million
shares Commenting on the fourth quarter and full year results,
George L. Engelke, Jr., Chairman, President and Chief Executive
Officer of Astoria, noted, "While the interest rate environment
became increasingly challenging during the fourth quarter with the
confluence of rising short-term interest rates and declining
long-term interest rates producing an inverted yield curve, Astoria
continued to produce strong earnings and returns." Board Increases
Quarterly Cash Dividend 20% The Company also announced that the
Board of Directors, at their January 25, 2006 meeting, declared a
quarterly cash dividend of $0.24 per share, an increase of 20%. The
cash dividend is payable on March 1, 2006 to shareholders of record
as of February 15, 2006. This is the forty-third consecutive
quarterly cash dividend declared by the Company. Commenting on the
Board's action, Mr. Engelke said, "The increase in the cash
dividend is evidence of the Board's continued confidence in the
fundamental strength of the Company and its commitment to enhancing
shareholder value." Tenth Stock Repurchase Program Completed;
Eleventh Program Commenced During the 2005 fourth quarter, Astoria
repurchased 2.5 million shares of its common stock at an average
cost of $28.37 per share. For the twelve months ended December 31,
2005, 6.6 million shares were repurchased at an average cost of
$27.49 per share. Subsequent to December 31, 2005, the Company
completed its tenth stock repurchase program, purchasing the
remaining 262,300 shares available under that plan. The eleventh
repurchase program, approved by the Board of Directors on December
21, 2005, authorizing the repurchase of up to ten million shares,
commenced in the 2006 first quarter immediately following the
completion of the tenth repurchase program. Board Sets Annual
Shareholders' Meeting Date The Board of Directors, at their January
25, 2006 meeting, established May 17, 2006 as the date for the
Annual Meeting of Shareholders, with a voting record date of March
24, 2006. Fourth Quarter and Full Year Earnings Summary Net
interest income for the quarter ended December 31, 2005 totaled
$113.7 million compared to $120.9 million for the same period a
year ago. For the twelve months ended December 31, 2005, net
interest income increased to $478.8 million from $470.6 in the
comparable 2004 period. Astoria's net interest margin for the
quarter ended December 31, 2005 declined six basis points from the
same period a year ago to 2.12%. On a linked quarter basis, the net
interest margin decreased eight basis points. The Company's core
interest rate spread (the difference between the yield on loans and
the cost of deposits) for the 2005 fourth quarter declined eleven
basis points on a linked quarter basis to 2.91% and eighteen basis
points from the 2004 fourth quarter. For the twelve months ended
December 31, 2005, the net interest margin increased two basis
points to 2.19% from 2.17% for the 2004 full year period.
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. If the
current flat to inverted yield curve persists throughout 2006, we
expect that the net interest margin will be somewhat lower but
should not decline below an average of 2.00% for the full year."
Non-interest income for the quarter ended December 31, 2005 totaled
$26.6 million compared to $22.6 million for the 2004 fourth
quarter, excluding the $16.5 million other-than-temporary
impairment charge. The increase is primarily due to an increase of
$2.3 million in customer service fees and $1.3 million of
non-recurring other income. For the twelve months ended December
31, 2005, non-interest income increased to $102.2 million from
$96.6 million for the comparable 2004 period, excluding the $16.5
million impairment charge noted above. The increase was primarily
due to a $7.7 million, or 13%, increase in customer service fees
and a $1.3 million increase in mortgage banking income, net,
partially offset by the absence of gains on sales of securities
which totaled $4.7 million in 2004. The components of mortgage
banking income, net, included in non-interest income, are detailed
below: (Dollars in millions) 4Q05 4Q04 2005 2004 Loan servicing
fees $ 1.2 $ 1.4 $ 5.0 $5.8 Amortization of MSR* (1.2) (1.6) (5.2)
(6.8) MSR valuation adjustments 0.1 0.3 2.7 2.2 Net gain on sale of
loans 0.8 0.7 3.5 3.5 Mortgage banking income, net $ 0.9 $ 0.8 $6.0
$ 4.7 * Mortgage servicing rights General and administrative
expense ("G&A") for the quarter ended December 31, 2005
declined to $52.7 million from $57.9 million for the 2005 third
quarter and $53.4 million for the 2004 fourth quarter. The linked
quarter decrease of $5.2 million is primarily due to the $1.9
million of expenses recorded in the 2005 third quarter related to
the outsourcing of our mortgage servicing and other company-wide
cost saving initiatives, a $1.2 million reduction in ESOP expense
in the 2005 fourth quarter related to the annual adjustment of
estimated expense to actual, and lower advertising expense in the
2005 fourth quarter. For the twelve months ended December 31, 2005,
G&A totaled $228.7 million compared to $225.0 million for the
comparable 2004 period. The Company expects the G&A expense
level for 2006 to be at or slightly lower than total G&A
expenses for 2005 due to the benefit derived from outsourcing
mortgage servicing and other company-wide cost-saving initiatives
undertaken in the 2005 third quarter, offset by normal annual
salary and other expense increases. Balance Sheet Summary Due to
the further flattening and inversion of the yield curve during the
fourth quarter, spread availability continued to narrow.
Accordingly, we continued to reduce our balance sheet through the
reduction of non-core business activities. Total securities for the
quarter ended December 31, 2005 decreased $516.2 million, or 29%
annualized, to $6.6 billion at December 31, 2005, or 29% of total
assets, of which $1.8 billion, or 8% of total assets, are
categorized as available-for-sale. Borrowings decreased $162.0
million in the fourth quarter of 2005, or 8% annualized, to $7.9
billion at December 31, 2005, representing 35% of total assets. For
the twelve months ended December 31, 2005, total securities
decreased $2.1 billion, or 25%, and borrowings decreased $1.5
billion, or 16%. Total assets decreased $250.4 million from
September 30, 2005 and $1.0 billion from December 31, 2004 and
total $22.4 billion at December 31, 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 Assets $22,700
$22,341 $22,672 $21,702 Loans $10,286 $11,422 $12,167 $12,059
Securities $10,763 $9,415 $8,013 $7,834 Deposits $9,555 $10,072
$10,904 $11,067 Borrowings $11,528 $10,324 $9,826 $8,825 Change
(Dollars in millions) 12/31/03 12/31/04 12/31/05 12/31/99-12/31/05
Assets $22,462 $23,416 $22,380 - 1% Loans $12,687 $13,263 $14,392 +
40% Securities $8,448 $8,710 $6,572 - 39% Deposits $11,187 $12,323
$12,810 + 34% Borrowings $9,632 $9,470 $7,938 - 31% During the 2005
fourth quarter, the 1-4 family mortgage loan portfolio increased
$248.4 million, or 10% annualized, to $9.8 billion at December 31,
2005. Originations and purchases totaled $837.6 million for the
2005 fourth quarter compared to $1.0 billion in the year-ago fourth
quarter of which 70% and 73%, respectively, consisted of 3/1 and
5/1 hybrid adjustable rate mortgage loans. For the year ended
December 31, 2005, the 1-4 family mortgage loan portfolio increased
$703.2 million, or 8%. One-to-four family loan originations and
purchases for 2005 increased to $3.3 billion from $3.2 billion for
the comparable 2004 period of which 76% and 73%, respectively,
consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans.
During the 2005 fourth quarter, the multifamily and CRE loan
portfolio increased $45.1 million, or 5% annualized, to $3.9
billion at December 31, 2005, or 27% of total loans outstanding.
Multifamily and CRE loan originations totaled $183.9 million for
the 2005 fourth quarter compared to $190.5 million for the
comparable 2004 period. For the year ended December 31, 2005, the
multifamily and CRE loan portfolio increased $398.9 million, or
11%. Multifamily and CRE loan originations for 2005 totaled $952.9
million compared to $1.1 billion for 2004. The average
loan-to-value ratio of the combined 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. At December 31, 2005, non-performing loans
increased to $65.0 million, or 0.29% of total assets, from $37.9
million, or 0.17% of total assets, at September 30, 2005. We
discontinue accruing interest on mortgage loans when such loans
become 90 days delinquent as to the interest due, even though in
some instances the borrower has only missed two payments. As of
December 31, 2005 and September 30, 2005, $28.1 million and $11.2
million, respectively, of loans classified as non-performing had
missed just two payments. As of December 31, 2005, 1-4 family
non-performing loans totaled $35.7 million and had an average LTV
of 65% and multifamily/CRE non-performing loans totaled $28.8
million and had an average LTV of 68% with an average debt coverage
ratio of 1.76. On November 30, 2005, the Company completed the
outsourcing of its mortgage servicing operations and systems.
Typically, with conversions of this magnitude, some disruptions in
payment processing and loan collection efforts occur which usually
take up to 90 days after outsourcing to return to normal. Net
charge-offs for the quarter and year ended December 31, 2005
totaled $888,000 and $1.6 million, respectively, or an annualized
rate of two basis points and one basis point, respectively, of
average total loans outstanding. The ratio of the allowance for
loan losses to non-performing loans at December 31, 2005 was 125%.
Deposits increased $4.8 million from September 30, 2005 and total
$12.8 billion at December 31, 2005. For the year ended December 31,
2005, deposits increased $487.2 million, or 4%. These increases are
primarily due to increases in medium-term and Liquid CD accounts.
During 2005, we have grown our medium-term CD accounts at interest
rates significantly below 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 year ended December 31, 2005,
$4.1 billion of non-Liquid CD accounts were issued or repriced at
an average rate of 3.45% and an average maturity of 13 months.
Since the introduction of our Liquid CD account in the 2005 first
quarter, balances have grown to $619.8 million at December 31,
2005. Core deposits, including Liquid CD accounts, at December 31,
2005 total $5.3 billion, with an average rate of 0.74%.
Stockholders' equity was $1.4 billion, or 6.03% of total assets at
December 31, 2005. Astoria Federal continues to maintain capital
ratios in excess of regulatory requirements with core, tangible and
risk-based capital ratios of 6.53%, 6.53% and 12.53%, respectively,
at December 31, 2005. Future Outlook Commenting on the outlook for
2006, Mr. Engelke stated, "We expect the operating environment to
remain challenging throughout 2006 as rising short- term interest
rates and relatively stable long-term interest rates exert further
pressure on the net interest margin. As a result, we expect to
continue our strategy of shrinking the balance sheet through a
reduction in the securities portfolio and borrowings of
approximately $1.5 billion each through normal cash flow, while we
emphasize deposit and loan growth, all of which will continue to
improve both the quality of the balance sheet and earnings.
Overall, these activities should result in a further reduction in
the balance sheet of approximately $1 billion, similar to the 2005
reduction, and a continued modest compression of the net interest
margin throughout 2006. As we continue to reduce the size of the
balance sheet during this challenging interest rate environment, we
will continue to focus on the repurchase of our stock as a very
desirable use of capital." Astoria Financial Corporation, the
holding company for Astoria Federal Savings and Loan Association,
with assets of $22.4 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 38 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
January 26, 2006 at 3:30 p.m. (ET) The Company, as previously
announced, indicated that Mr. Engelke will host an earnings
conference call Thursday afternoon, January 26, 2006 at 3:30 p.m.
(ET). The toll-free dial-in number is (800) 967-7140. A telephone
replay will be available on January 26, 2006 from 7:00 p.m. (ET)
through February 3, 2006, 11:59 p.m. (ET). The replay number is
(888) 203-1112, passcode: 5734845. 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 December 31, December 31, 2005 2004 ASSETS
Cash and due from banks $169,234 $138,809 Repurchase agreements
182,803 267,578 Mortgage-backed and other securities
available-for-sale 1,841,351 2,406,883 Mortgage-backed and other
securities held-to-maturity (fair value of $4,627,013 and
$6,306,760, respectively) 4,730,953 6,302,936 Federal Home Loan
Bank of New York stock, at cost 145,247 163,700 Loans
held-for-sale, net 23,651 23,802 Loans receivable: Mortgage loans,
net 13,879,804 12,746,134 Consumer and other loans, net 512,489
517,145 14,392,293 13,263,279 Allowance for loan losses (81,159)
(82,758) Total loans receivable, net 14,311,134 13,180,521 Mortgage
servicing rights, net 16,502 16,799 Accrued interest receivable
80,318 79,144 Premises and equipment, net 151,494 157,107 Goodwill
185,151 185,151 Bank owned life insurance 382,613 374,719 Other
assets 159,820 118,720 TOTAL ASSETS $22,380,271 $23,415,869
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits
$12,810,455 $12,323,257 Reverse repurchase agreements 5,780,000
7,080,000 Federal Home Loan Bank of New York advances 1,724,000
1,934,000 Other borrowings, net 433,526 455,835 Mortgage escrow
funds 124,929 122,088 Accrued expenses and other liabilities
157,134 130,925 TOTAL LIABILITIES 21,030,044 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 104,967,280 and 110,304,669 shares outstanding,
respectively) 1,665 1,665 Additional paid-in capital 824,102
811,777 Deferred compensation (5,636) - Retained earnings 1,774,924
1,623,571 Treasury stock (61,527,608 and 56,190,219 shares, at
cost, respectively) (1,171,604) (1,013,726) Accumulated other
comprehensive loss (49,536) (28,592) Unallocated common stock held
by ESOP (6,465,273 and 6,802,146 shares, respectively) (23,688)
(24,931) TOTAL STOCKHOLDERS' EQUITY 1,350,227 1,369,764 TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $22,380,271 $23,415,869
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF INCOME (In Thousands, Except Share Data) For the
Three Months For the Twelve Months Ended Ended December 31,
December 31, 2005 2004 2005 2004 Interest income: Mortgage loans:
One-to-four family $120,331 $107,375 $459,929 $428,229
Multi-family, commercial real estate and construction 61,672 55,821
239,119 220,703 Consumer and other loans 8,705 6,239 31,160 21,312
Mortgage-backed and other securities 76,106 97,454 340,626 371,044
Federal funds sold and repurchase agreements 2,257 439 6,123 1,140
Federal Home Loan Bank of New York stock 1,630 836 6,030 3,473
Total interest income 270,701 268,164 1,082,987 1,045,901 Interest
expense: Deposits 77,471 64,181 281,399 237,429 Borrowed funds
79,546 83,104 322,808 337,906 Total interest expense 157,017
147,285 604,207 575,335 Net interest income 113,684 120,879 478,780
470,566 Provision for loan losses - - - - Net interest income after
provision for loan losses 113,684 120,879 478,780 470,566
Non-interest income: Customer service fees 17,207 14,905 66,256
58,524 Other loan fees 1,337 1,169 4,980 4,805 Net gain on sales of
securities - - - 4,651 Other-than-temporary impairment write- down
of securities - (16,520) - (16,520) Mortgage banking income, net
948 811 6,015 4,715 Income from bank owned life insurance 4,011
4,248 16,446 17,134 Other 3,056 1,430 8,502 6,775 Total
non-interest income 26,559 6,043 102,199 80,084 Non-interest
expense: General and administrative: Compensation and benefits
27,600 27,138 119,417 118,684 Occupancy, equipment and systems
15,905 16,158 63,695 64,592 Federal deposit insurance premiums 433
446 1,760 1,775 Advertising 1,275 1,521 8,815 6,583 Other 7,531
8,177 35,047 33,377 Total non-interest expense 52,744 53,440
228,734 225,011 Income before income tax expense 87,499 73,482
352,245 325,639 Income tax expense 29,750 22,966 118,442 106,102
Net income $57,749 $50,516 $233,803 $219,537 Basic earnings per
common share $0.58 $0.48 $2.30 $2.03 Diluted earnings per common
share $0.57 $0.48 $2.26 $2.00 Basic weighted average common shares
99,478,069 104,395,014 101,476,376 107,930,909 Diluted weighted
average common and common equivalent shares 101,449,368 106,342,848
103,408,637 109,806,855 ASTORIA FINANCIAL CORPORATION AND
SUBSIDIARIES SELECTED FINANCIAL RATIOS AND OTHER DATA At or For the
At or For the Three Months Ended Twelve Months Ended December 31,
December 31, 2005 2004 2005 2004 (Annualized) Selected Returns and
Financial Ratios Return on average stockholders' equity 16.97 %
14.75 % 17.06 % 15.81 % Return on average tangible stockholders'
equity (1) 19.64 17.05 19.72 18.25 Return on average assets 1.03
0.87 1.02 0.97 General and administrative expense to average assets
0.94 0.92 1.00 0.99 Efficiency ratio (2) 37.61 42.10 39.37 40.86
Net interest rate spread (3) 2.03 2.09 2.11 2.09 Net interest
margin (4) 2.12 2.18 2.19 2.17 Selected Operating Returns and
Financial Ratios (5) Operating return on average stockholders'
equity 16.97 % 17.54 % 17.06 % 16.50 % Operating return on average
tangible stockholders' equity (1) 19.64 20.28 19.72 19.04 Operating
return on average assets 1.03 1.04 1.02 1.01 Operating efficiency
ratio (2) 37.61 37.26 39.37 39.67 Asset Quality Data (dollars in
thousands) Non-performing loans/total loans 0.45 % 0.25 %
Non-performing loans/total assets 0.29 0.14 Non-performing
assets/total assets 0.30 0.14 Allowance for loan
losses/non-performing loans 124.81 254.02 Allowance for loan
losses/non-accrual loans 125.15 258.57 Allowance for loan
losses/total loans 0.56 0.62 Net charge-offs to average loans
outstanding 0.02 % 0.00 % 0.01 0.00 Non-performing assets $66,093
$33,499 Non-performing loans 65,027 32,579 Loans 90 days past
maturity but still accruing interest 176 573 Non-accrual loans
64,851 32,006 Net charge-offs $888 $45 1,599 363 Capital Ratios
(Astoria Federal) Tangible 6.53 % 5.99 % Core 6.53 5.99 Risk-based
12.53 12.44 Other Data Cash dividends paid per common share $0.20
$0.17 $0.80 $0.67 Dividend payout ratio 35.09 % 35.42 % 35.40 %
33.50 % Book value per share (6) $13.71 $13.23 Tangible book value
per share (7) 11.83 11.45 Average equity/average assets 6.06 % 5.90
% 5.99 % 6.12 % Mortgage loans serviced for others (in thousands)
$1,502,852 $1,670,062 Full time equivalent employees 1,658 1,862
(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) Operating returns and financial ratios exclude the
other-than- temporary impairment write-down of securities charge of
$9.6 million, after tax, recorded in the 2004 fourth quarter. (6)
Book value per share represents stockholders' equity divided by
outstanding shares, excluding unallocated Employee Stock Ownership
Plan, or ESOP, shares. (7) 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 December 31, 2005 Average Average Yield/
Balance Interest Cost (Annualized) Assets: Interest-earning assets:
Mortgage loans (1): One-to-four family $9,754,809 $120,331 4.93 %
Multi-family, commercial real estate and construction 4,005,714
61,672 6.16 Consumer and other loans (1) 522,429 8,705 6.67 Total
loans 14,282,952 190,708 5.34 Mortgage-backed and other securities
(2) 6,807,465 76,106 4.47 Federal funds sold and repurchase
agreements 229,174 2,257 3.94 Federal Home Loan Bank stock 131,178
1,630 4.97 Total interest-earning assets 21,450,769 270,701 5.05
Goodwill 185,151 Other non-interest-earning assets 825,378 Total
assets $22,461,298 Liabilities and stockholders' equity:
Interest-bearing liabilities: Savings $2,564,728 2,598 0.41 Money
market 690,978 1,688 0.98 NOW and demand deposit 1,554,803 230 0.06
Liquid certificates of deposit 537,574 4,710 3.50 Total core
deposits 5,348,083 9,226 0.69 Certificates of deposit 7,419,474
68,245 3.68 Total deposits 12,767,557 77,471 2.43 Borrowed funds
8,000,733 79,546 3.98 Total interest-bearing liabilities 20,768,290
157,017 3.02 Non-interest-bearing liabilities 331,989 Total
liabilities 21,100,279 Stockholders' equity 1,361,019 Total
liabilities and stockholders' equity $22,461,298 Net interest
income/net interest rate spread $113,684 2.03 % Net
interest-earning assets/net interest margin $682,479 2.12 % Ratio
of interest-earning assets to interest-bearing liabilities 1.03x
For the Three Months Ended December 31, 2004 Average Average Yield/
Balance Interest Cost (Annualized) Assets: Interest-earning assets:
Mortgage loans (1): One-to-four family $8,957,442 $107,375 4.79 %
Multi-family, commercial real estate and construction 3,580,890
55,821 6.24 Consumer and other loans (1) 508,215 6,239 4.91 Total
loans 13,046,547 169,435 5.19 Mortgage-backed and other securities
(2) 8,898,349 97,454 4.38 Federal funds sold and repurchase
agreements 92,470 439 1.90 Federal Home Loan Bank stock 153,008 836
2.19 Total interest-earning assets 22,190,374 268,164 4.83 Goodwill
185,151 Other non-interest-earning assets 834,793 Total assets
$23,210,318 Liabilities and stockholders' equity: Interest-bearing
liabilities: Savings $2,938,663 2,970 0.40 Money market 990,967
1,788 0.72 NOW and demand deposit 1,569,387 237 0.06 Liquid
certificates of deposit - - - Total core deposits 5,499,017 4,995
0.36 Certificates of deposit 6,724,096 59,186 3.52 Total deposits
12,223,113 64,181 2.10 Borrowed funds 9,281,827 83,104 3.58 Total
interest-bearing liabilities 21,504,940 147,285 2.74
Non-interest-bearing liabilities 335,102 Total liabilities
21,840,042 Stockholders' equity 1,370,276 Total liabilities and
stockholders' equity $23,210,318 Net interest income/net interest
rate spread $120,879 2.09 % Net interest-earning assets/net
interest margin $685,434 2.18 % 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 Twelve Months Ended December 31,
2005 Average Average Yield/ Balance Interest Cost Assets:
Interest-earning assets: Mortgage loans (1): One-to-four family
$9,461,023 $459,929 4.86 % Multi-family, commercial real estate and
construction 3,862,281 239,119 6.19 Consumer and other loans (1)
526,071 31,160 5.92 Total loans 13,849,375 730,208 5.27
Mortgage-backed and other securities (2) 7,671,532 340,626 4.44
Federal funds sold and repurchase agreements 195,863 6,123 3.13
Federal Home Loan Bank stock 130,759 6,030 4.61 Total
interest-earning assets 21,847,529 1,082,987 4.96 Goodwill 185,151
Other non-interest-earning assets 852,475 Total assets $22,885,155
Liabilities and stockholders' equity: Interest-bearing liabilities:
Savings $2,742,417 11,015 0.40 Money market 804,855 7,513 0.93 NOW
and demand deposit 1,569,419 928 0.06 Liquid certificates of
deposit 350,923 10,708 3.05 Total core deposits 5,467,614 30,164
0.55 Certificates of deposit 7,146,664 251,235 3.52 Total deposits
12,614,278 281,399 2.23 Borrowed funds 8,566,812 322,808 3.77 Total
interest-bearing liabilities 21,181,090 604,207 2.85
Non-interest-bearing liabilities 333,522 Total liabilities
21,514,612 Stockholders' equity 1,370,543 Total liabilities and
stockholders' equity $22,885,155 Net interest income/net interest
rate spread $478,780 2.11 % Net interest-earning assets/net
interest margin $666,439 2.19 % Ratio of interest-earning assets to
interest-bearing liabilities 1.03x For the Twelve Months Ended
December 31, 2004 Average Average Yield/ Balance Interest Cost
Assets: Interest-earning assets: Mortgage loans (1): One-to-four
family $8,894,219 $428,229 4.81 % Multi-family, commercial real
estate and construction 3,419,369 220,703 6.45 Consumer and other
loans (1) 478,195 21,312 4.46 Total loans 12,791,783 670,244 5.24
Mortgage-backed and other securities (2) 8,608,601 371,044 4.31
Federal funds sold and repurchase agreements 86,625 1,140 1.32
Federal Home Loan Bank stock 171,419 3,473 2.03 Total
interest-earning assets 21,658,428 1,045,901 4.83 Goodwill 185,151
Other non-interest-earning assets 848,106 Total assets $22,691,685
Liabilities and stockholders' equity: Interest-bearing liabilities:
Savings $2,973,054 11,920 0.40 Money market 1,088,915 6,379 0.59
NOW and demand deposit 1,534,822 921 0.06 Liquid certificates of
deposit - - - Total core deposits 5,596,791 19,220 0.34
Certificates of deposit 6,211,014 218,209 3.51 Total deposits
11,807,805 237,429 2.01 Borrowed funds 9,184,928 337,906 3.68 Total
interest-bearing liabilities 20,992,733 575,335 2.74
Non-interest-bearing liabilities 310,662 Total liabilities
21,303,395 Stockholders' equity 1,388,290 Total liabilities and
stockholders' equity $22,691,685 Net interest income/net interest
rate spread $470,566 2.09 % Net interest-earning assets/net
interest margin $665,695 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. ASTORIA
FINANCIAL CORPORATION AND SUBSIDIARIES END OF PERIOD BALANCES AND
RATES (Dollars in Thousands) At At At December 31, September 30,
December 31, 2005 2005 2004 Weighted Weighted Weighted Average
Average Average Balance Rate (1) Balance Rate (1) Balance Rate (1)
Selected interest-earning assets: Mortgage loans, gross (2):
One-to-four family $9,757,920 5.19% $9,509,514 5.13% $9,054,747
5.05% Multi-family, commercial real estate and construction
4,039,733 5.88 3,991,029 5.85 3,621,560 5.90 Mortgage-backed and
other securities (3) 6,572,304 4.35 7,088,515 4.35 8,709,819 4.37
Interest-bearing liabilities: Savings 2,510,897 0.40 2,636,201 0.40
2,929,120 0.40 Money market 648,730 0.95 729,552 0.97 965,288 0.80
NOW and demand deposit 1,569,859 0.06 1,547,769 0.06 1,580,714 0.06
Liquid certificates of deposit 619,784 3.66 479,372 3.29 - - Total
core deposits 5,349,270 0.74 5,392,894 0.64 5,475,122 0.37
Certificates of deposit 7,461,185 3.73 7,412,756 3.58 6,848,135
3.46 Total deposits 12,810,455 2.48 12,805,650 2.34 12,323,257 2.09
Borrowings, net 7,937,526 3.97 8,099,498 3.84 9,469,835 3.57 (1)
Weighted average rates represent stated or coupon interest rates
excluding the effect of yield adjustments for premiums, discounts
and deferred loan origination fees and costs and the impact of
prepayment penalties. (2) Mortgage loans exclude loans
held-for-sale and include non-performing loans. (3) Securities
available-for-sale are reported at fair value and securities
held-to-maturity are reported at amortized cost. RECONCILIATION OF
2004 GAAP NET INCOME TO OPERATING EARNINGS (In Thousands, Except
Per Share Data) For the Three Months Ended For the Twelve Months
Ended December 31, 2004 December 31, 2004 GAAP Adjustments
Operating GAAP Adjustments Operating Net interest income after
provision for loan losses $120,879 $ - $120,879 $470,566 $ -
$470,566 Non-interest income 6,043 16,520 22,563 80,084 16,520
96,604 Non-interest expense 53,440 - 53,440 225,011 - 225,011
Income before income tax expense 73,482 16,520 90,002 325,639
16,520 342,159 Income tax expense 22,966 6,945 29,911 106,102 6,945
113,047 Net income $50,516 $9,575 $60,091 $219,537 $9,575 $229,112
Basic earnings per common share $0.48 $0.09 $0.58 $2.03 $0.09 $2.12
Diluted earnings per common share $0.48 $0.09 $0.57 $2.00 $0.09
$2.09 The above adjustments relate to the $16.5 million
other-than-temporary impairment write-down on $120.0 million of
Freddie Mac preferred stock and the related tax effects.
DATASOURCE: Astoria Financial Corporation CONTACT: Peter J.
Cunningham, First Vice President, Investor Relations of Astoria
Financial Corporation, +1-516-327-7877, Web site:
http://ir.astoriafederal.com/ Company News On-Call:
http://www.prnewswire.com/comp/104529.html
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