Astoria Financial Corporation to Record Other-Than-Temporary Impairment Charge in Fourth Quarter Relating to Freddie Mac Preferr
January 17 2008 - 10:04AM
PR Newswire (US)
LAKE SUCCESS, N.Y., Jan. 17 /PRNewswire-FirstCall/ -- Astoria
Financial Corporation ("Company") (NYSE:AF), the holding company
for Astoria Federal Savings and Loan Association, announced today
that it intends to record an other-than-temporary impairment
non-cash after-tax charge of $13.3 million, or $0.15 per diluted
share, in the quarter ended December 31, 2007 to reduce the
carrying amount of its investment in two perpetual preferred stock
issues of Freddie Mac, a government sponsored enterprise, to the
securities' market value of $83 million at December 31, 2007. The
perpetual preferred stock issues are investment grade securities
(AA- by S&P and Aa3 by Moody's) that are held in the Company's
available-for-sale securities portfolio. Prior to this charge,
impairment was recorded as an unrealized mark-to-market loss on
securities available-for-sale and reflected as a reduction to
equity through other comprehensive income. Accordingly, the
reclassification of the unrealized after-tax loss to an
other-than-temporary impairment non-cash charge will not affect
shareholders' equity, tangible shareholders' equity or related
capital ratios. George L. Engelke, Jr., Chairman and CEO of Astoria
commented, "The decision to reclassify the unrealized
mark-to-market loss on these investment grade securities to an
other-than-temporary impairment charge is based on the significant
decline in the market value of these securities caused by Freddie
Mac's recently announced negative financial results, capital
raising activity and the unlikelihood of any near-term market value
recovery." Astoria Financial Corporation, as previously announced,
expects to report fourth quarter and full year financial results on
Wednesday afternoon, January 23, 2007. Astoria Financial
Corporation, with assets of $21.7 billion, is the holding company
for Astoria Federal Savings and Loan Association. Established in
1888, Astoria Federal is the largest thrift depository
headquartered in New York with deposits of $13.3 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 covering twenty-two states, primarily the East
Coast, and the District of Columbia, and through correspondent
relationships covering twenty-nine states and the District of
Columbia. 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 real estate or securities
markets or the banking industry may be less favorable than we
currently anticipate; legislative or regulatory changes may
adversely affect our business; applicable technological changes may
be more difficult or expensive than we anticipate; success or
consummation of new business initiatives may be more difficult or
expensive than we anticipate; or litigation or matters before
regulatory agencies, whether currently existing or commencing in
the future, may be determined adverse to us or may delay 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.
DATASOURCE: Astoria Financial Corporation CONTACT: Peter J.
Cunningham, First Vice President, Investor Relations of Astoria
Financial Corporation, +1-516-327-7877, Web site:
http://www.astoriafederal.com/ Company News On-Call:
http://www.prnewswire.com/comp/104529.html
Copyright
Astoria (NYSE:AF)
Historical Stock Chart
From May 2024 to Jun 2024
Astoria (NYSE:AF)
Historical Stock Chart
From Jun 2023 to Jun 2024