LAKE SUCCESS, N.Y.,
Oct. 19, 2011 /PRNewswire/ -- Astoria
Financial Corporation (NYSE: AF) ("Astoria," the "Company"), the holding company
for Astoria Federal Savings and Loan Association ("Astoria
Federal"), today reported net income of $11.2 million, or $0.12 diluted earnings per share ("diluted EPS"),
for the quarter ended September 30,
2011 compared to net income of $21.5
million, or $0.23 diluted EPS,
for the quarter ended September 30,
2010. For the nine months ended September 30, 2011, net income totaled
$55.4 million, or $0.58 diluted EPS, increases of 11% and 9%,
respectively, over net income of $49.9
million, or $0.53 diluted EPS,
for the comparable 2010 period. Included in the 2010 nine
month period are net charges totaling $3.2
million ($2.1 million, or
$0.02 per share, after-tax), which
are not routine to our core operations. For further details,
please refer to the "Reconciliation of GAAP Measures to Non-GAAP
Measures" table included in this release.
Commenting on the 2011 third quarter results, Monte N. Redman, President and Chief Executive
Officer of Astoria, stated, "Our
financial results for the quarter were negatively impacted by two
events: the decrease in average interest-earning assets by almost
$400 million from the 2011 second
quarter, due in part to the flattening of the U.S. Treasury yield
curve which kept residential mortgage prepayment activity at
elevated levels, and a non-cash increase of over $3 million in ESOP expense, due to our lower
stock price during the third quarter. On a more positive
note, the pace of the decline in the balance sheet and loan
portfolio has slowed significantly in the third quarter and we
expect to see modest growth in the 2011 fourth quarter,
accelerating further in 2012."
Financial Highlights
- Low cost savings, money market and checking accounts increased
$389.6 million, or 31% annualized, to
$5.4 billion, from June 30, 2011 and increased $987.7 million, or 22%, from September 30, 2010.
- Early stage loan delinquencies (30-89 days past due) decreased
$18.7 million, or 9%, to $188.5 million, from June
30, 2011 and $63.5 million, or
25%, from September 30, 2010.
- Total past due loans and REO decreased $23.6 million, or 4%, to $619.2 million, from June
30, 2011 and $97.1 million, or
14%, from September 30, 2010.
- The Company's tangible common equity ratio increased to 6.55%,
up 9 basis points from June 30, 2011
and 92 basis points from September 30,
2010.
- Astoria Federal's leverage and tangible capital ratios
increased to 8.75%, up 14 basis points from June 30, 2011 and 116 basis points from
September 30, 2010.
- Astoria Federal's Tier 1 risk-based capital ratio increased to
14.89%, up 41 basis points from June 30,
2011 and 202 basis points from September 30, 2010.
- The residential loan pipeline, excluding our own customer loan
refinances, totaled $1.0 billion at
September 30, 2011, 28% higher than
June 30, 2011
- The multi-family loan pipeline totaled $252.7 million at September 30, 2011 versus no pipeline at
June 30, 2011
Board Declares Quarterly Cash Dividend of $0.13 Per Share
The Board of Directors of the Company, at their October 19, 2011 meeting, declared a quarterly
cash dividend of $0.13 per common
share. The dividend is payable on December 1, 2011 to shareholders of record as of
November 15, 2011. This is the
sixty-sixth consecutive quarterly cash dividend declared by the
Company.
Third Quarter and Nine Months Earnings Summary
Net interest income for the quarter ended September 30, 2011 totaled $90.6 million compared to $95.7 million for the previous quarter and
$106.0 million for the 2010 third
quarter. For the nine months ended September 30, 2011, net interest income totaled
$287.9 million compared to
$332.3 million for the comparable
2010 period. The decreases in net interest income are due
primarily to decreases in average interest-earning assets of
$385.5 million on a linked quarter
basis and $2.3 billion for both the
year over year quarter and nine month periods and asset yields
declining greater than the cost of funds, due to the prolonged low
interest rate environment. The net interest margin for the
quarter ended September 30, 2011 was
2.27% compared to 2.34% for the previous quarter and 2.32% for the
2010 third quarter. Approximately 2 basis points of the
linked quarter decrease is due to one extra day of interest expense
in the 2011 third quarter. For the nine months ended
September 30, 2011, the net interest
margin was 2.34% compared to 2.36% for the comparable 2010 nine
month period.
For the quarter ended September 30,
2011, a $10.0 million
provision for loan losses was recorded, which was equal to the
provision for the previous quarter and 50% lower than the
$20.0 million provision recorded for
the 2010 third quarter. For the nine months ended
September 30, 2011, the provision for
loan losses totaled $27.0 million
compared to $100.0 million for the
comparable 2010 period. Mr. Redman noted, "Despite the
improved credit metrics of the loan portfolio, including the noted
decline in total loan delinquencies, we felt it prudent, at this
time, to maintain our strong allowance for loan losses coverage
ratio, which was 1.34% of total loans at September 30, 2011."
Non-interest income for the quarter ended September 30, 2011 totaled $16.5 million compared to $17.0 million for the previous quarter and
$18.6 million for the 2010 third
quarter. Non-interest income for the nine months ended
September 30, 2011 totaled
$51.6 million compared to
$60.5 million for the comparable 2010
period. The decrease for the nine months ended September 30, 2011 is due to a $6.2 million gain relating to a litigation
settlement recorded in 2010, partially offset by a $1.5 million impairment write-down of premises
and equipment recorded in 2010, coupled with a decrease of
$3.4 million in customer service
fees.
General and administrative ("G&A") expense for the quarter
ended September 30, 2011 totaled
$78.6 million compared to
$76.0 million for the previous
quarter and $70.9 million for the
2010 third quarter. The linked quarter increase is primarily due to
an increase in compensation and benefits expense, primarily a
non-cash increase in ESOP expense of over $3
million, due to the lower stock price in the 2011 third
quarter, partially offset by lower incentive bonus expense.
The quarterly year over year increase is due to a
$4.3 million increase in FDIC deposit
insurance expense and a $3.5 million
increase in compensation and benefits expense, primarily ESOP
expense. Mr. Redman stated, "Excluding the increase in the
non-cash ESOP expense, G&A expenses remained essentially flat
on a linked quarter basis."
For the nine months ended September 30,
2011, G&A expense totaled $224.2
million compared to $215.0
million for the nine months ended September 30, 2010. The increase is due to
a $7.8 million increase in FDIC
deposit insurance expense, a $7.3
million increase in compensation and benefits expense,
primarily ESOP and pension expense, and a $1.8 million increase in advertising expense,
partially offset by a $7.9 million
litigation settlement expense recorded in 2010.
Balance Sheet Summary
Total assets decreased $143.7
million from June 30, 2011 and
$1.1 billion from December 31, 2010 and totaled $17.0 billion at September
30, 2011. The decline is primarily due to a decrease
in the loan portfolio. "We believe the decline in the balance
sheet has reached an inflection point in the third quarter,
evidenced by the smallest quarterly decline in the balance sheet in
two years. As previously stated, our expectation for modest
loan and balance sheet growth in the 2011 fourth quarter and more
significant growth in 2012 is predicated on two factors. The
one-to-four family loan pipeline at September 30, 2011, excluding our own customer
loan refinances, was $1.0 billion, or
28%, higher than it was at June 30,
2011, which should mitigate the effect of elevated
prepayment activity, and the multi-family loan pipeline at
September 30, 2011 was $252.7 million and growing, due to the resumption
of lending in the 2011 third quarter," Mr. Redman noted.
The one-to-four family portfolio increased $11.4 million from June
30, 2011 to $10.6 billion at
September 30, 2011, the first
increase in the portfolio in more than two years. For the
quarter and nine months ended September 30,
2011, one-to-four family loan originations for portfolio
totaled $1.0 billion and $2.4 billion, respectively, compared to
$646.7 million and $2.2 billion, respectively, for the comparable
2010 periods. The loan-to-value ratio of the one-to-four
family loan production for portfolio for the 2011 third quarter and
nine months each averaged approximately 60% at origination and the
loan amount averaged approximately $782,000 and $766,000, respectively. One-to-four family
loan prepayments for the quarter and nine months ended September 30, 2011 totaled $892.9 million and $2.3
billion, respectively, compared to $848.3 million and $2.3
billion, respectively, for the comparable 2010 periods.
The combined multi-family/commercial real estate ("CRE")
portfolio totaled $2.4 billion at
September 30, 2011 compared to
$2.6 billion at June 30, 2011 and $3.0
billion at December 31, 2010.
Multi-family/CRE loan prepayments for the quarter and nine
months ended September 30, 2011
totaled $176.1 million and
$502.5 million, respectively,
compared to $70.1 million and
$186.4 million for the comparable
2010 periods.
The securities portfolio increased $61.7
million from June 30, 2011 and
totaled $2.5 billion at September 30, 2011. We expect to maintain
the securities portfolio at, or slightly higher than, current
levels throughout the remainder of the year.
Deposits increased $56.5 million
from June 30, 2011 and decreased
$331.9 million from December 31, 2010 to $11.3
billion at September 30, 2011.
Importantly, low-cost savings, money market and checking
account deposits increased $389.6
million, or 31% annualized, from June
30, 2011 and $618.9 million,
or 17% annualized, from December 31,
2010. Certificate of deposit ("CD") accounts
(including Liquid CDs) decreased $333.1
million from the previous quarter and $950.7 million from December 31, 2010. Notwithstanding the
decline in CDs, during the nine months ended September 30, 2011, we extended $606.5 million of CDs for terms of two years or
more in an effort to help limit our exposure to future increases in
interest rates. At September 30,
2011, our one-year interest rate sensitivity gap was
positive 3.22%.
Borrowings decreased $263.9
million from June 30, 2011 and
$846.7 million from December 31, 2010 to $4.0
billion at September 30,
2011.
Stockholders' equity totaled $1.3
billion, or 7.57% of total assets, at September 30, 2011. Astoria Federal
continues to be designated as well-capitalized with leverage,
tangible, risk-based and Tier 1 risk-based capital ratios of 8.75%,
8.75%, 16.18% and 14.89%, respectively, at September 30, 2011.
Asset Quality
Non-performing loans ("NPLs"), including troubled debt
restructurings of $36.8 million,
totaled $380.0 million, or 2.24% of
total assets, at September 30, 2011,
an increase of $3.7 million from the
previous quarter. One-to-four family NPLs totaled
$324.9 million,
multi-family/CRE/construction NPLs totaled $49.6 million and consumer and other NPLs totaled
$5.5 million, compared to
$329.6 million, $41.6 million and $5.2
million, respectively, at June 30,
2011. Of the $324.9
million of one-to-four family NPLs, $258.7 million, or 80%, represent residential
loans which, at 180 days delinquent and annually thereafter, were
reviewed and charged-off, as needed, to the estimated fair value of
the underlying collateral at such time, less estimated selling
costs.
The following table illustrates loan migration trends from 30
days delinquent to 90+ days delinquent:
|
|
($ in millions)
|
30-59
Days
Past Due
|
60-89
Days
Past Due
|
Combined
30-89 Days
Past Due
|
Change
from
Previous
Quarter
|
90 +
Days
Past Due
(NPLs)
|
Total
30-90+
Days Past Due
|
|
At Sept. 30, 2010
|
$181.6
|
$ 70.4
|
$252.0
|
$(56.4)
|
$399.6
|
$651.6
|
|
At Dec. 31, 2010
|
$165.8
|
$ 54.3
|
$220.1
|
$(31.9)
|
$390.7
|
$610.8
|
|
At March 31, 2011
|
$155.0
|
$ 62.2
|
$217.2
|
$ (2.9)
|
$373.8
|
$591.0
|
|
At June 30, 2011
|
$162.8
|
$ 44.4
|
$207.2
|
$ (10.0)
|
$376.3
|
$583.5
|
|
At Sept. 30, 2011
|
$143.8
|
$ 44.7
|
$188.5
|
$ (18.7)
|
$380.0
|
$568.5
|
|
|
|
|
|
|
|
|
|
|
The table below details, as of September
30, 2011, the ten largest concentrations by state of
one-to-four family loans and the respective non-performing loan
totals in those states. More comprehensive state details are
included in the "One-to-Four Family Residential Loan
Portfolio-Geographic Analysis" table included in this release.
|
|
($ in millions)
State
|
Total
1-4
Family Loans
|
% of Total
1-4
Family Loan
Portfolio
|
Total
1-4
Family
NPLs
|
NPLs as
%
of State
Total
|
|
New York
|
$2,994.0
|
28.3%
|
$40.6
|
1.36%
|
|
Illinois
|
$1,286.4
|
12.2%
|
$49.5
|
3.85%
|
|
Connecticut
|
$1,041.1
|
9.9%
|
$32.1
|
3.08%
|
|
New Jersey
|
$ 763.8
|
7.2%
|
$56.6
|
7.41%
|
|
Massachusetts
|
$ 753.6
|
7.1%
|
$11.2
|
1.49%
|
|
California
|
$ 721.9
|
6.8%
|
$35.0
|
4.85%
|
|
Virginia
|
$ 636.9
|
6.0%
|
$12.4
|
1.95%
|
|
Maryland
|
$ 622.2
|
5.9%
|
$39.9
|
6.41%
|
|
Washington
|
$ 309.1
|
2.9%
|
$ 2.7
|
0.87%
|
|
Texas
|
$ 246.4
|
2.3%
|
$ 0.0
|
0.0%
|
|
Top 10 States
|
$ 9,375.4
|
88.6%
|
$280.0
|
2.99%
|
|
All other states
(1,2)
|
$ 1,187.0
|
11.4%
|
$ 44.9
|
3.78%
|
|
Total 1-4 Family
Portfolio
|
$10,562.4
|
100%
|
$324.9
|
3.08%
|
|
(1) Includes 27 states and
Washington, D.C.
(2) Includes Florida with
$203.3 million total loans, of which $23.2 million are
non-performing loans.
|
|
|
|
|
|
|
Net loan charge-offs for the quarter and nine months ended
September 30, 2011 totaled
$14.4 million and $50.1 million, respectively, down from
$24.8 million and $87.8 million, respectively, for the comparable
2010 periods. Included in the 2011 third quarter one-to-four
family net loan charge-offs are $13.9
million of charge-offs on $59.7
million of NPLs which, at 180 days delinquent and annually
thereafter, were reviewed in the 2011 third quarter and
charged-off, as needed, to the estimated fair value of the
underlying collateral less estimated selling costs. "While we
expect NPL levels will remain elevated for some time, especially in
those states requiring judicial foreclosure, it is important to
note that the loss potential remaining has been greatly reduced as
a result of our having already reviewed, marked down, and
charged-off as necessary, 80% of the residential NPLs to their
adjusted fair value less estimated selling costs," Mr. Redman
noted.
Selected Asset Quality
Metrics
(at or for the
three months ended September 30,
2011, except as noted)
|
|
($ in millions)
|
1-4
Family
|
Multi-
family
|
CRE
|
Construction
|
Consumer
& Other
|
Total
|
|
Loan portfolio
balance
|
$10,562.4
|
$ 1,685.2
|
$ 692.8
|
$ 12.9
|
$ 288.6(1)
|
$13,319.6 (2)
|
|
Non-performing loans
|
$ 324.9
(3)
|
$ 34.0
|
$ 10.9
|
$ 4.7
|
$ 5.5
|
$ 380.0
|
|
NPLs/total loans
|
2.44%
|
0.26%
|
0.08%
|
0.03%
|
0.04%
|
2.85%
|
|
Net charge-offs
3Q11
|
$
14.7
|
$
0.0
|
$ 0.0
|
$ (0.4)
|
$ 0.1
|
$
14.4
|
|
Net charge-offs YTD
|
$
41.8
|
$
6.7
|
$ 0.8
|
$ (0.1)
|
$ 1.0
|
$ 50.1
(4)
|
|
(1) Includes home equity
loans of $265.3 million
(2) Includes $77.8 million
of net unamortized premiums and deferred loan costs
(3) Includes $258.7
million, or 80%, of NPLs reviewed and charged-off, as needed, at
180 days delinquent and annually thereafter
(4) Does not foot due to
rounding
|
|
|
|
|
|
|
|
|
Future Outlook
Commenting on the outlook for the fourth quarter and 2012, Mr.
Redman stated, "We continue to operate in a challenging
environment; economic growth remains weak, unemployment stubbornly
remains elevated and home values continue to remain soft. In
addition, the implementation of Operation Twist by the Federal
Reserve has contributed to a flattening of the U.S. Treasury yield
curve, putting further downward pressure on long term interest
rates and current mortgage product offerings, as well as increasing
mortgage loan prepayments. However, we are optimistic that the
increase in our loan pipeline, coupled with the reduction in the
expanded conforming loan limits that commenced October 1, 2011 and the resumption of
multi-family/commercial real estate lending, should facilitate
modest loan and balance sheet growth in the fourth quarter and more
robust growth in 2012. With respect to the net interest
margin, we expect that, in the current low interest rate
environment, with increased loan prepayment activity, the margin
for the 2011 fourth quarter will be down slightly from the third
quarter and for 2012 may be somewhat lower than the margin for
2011."
Earnings Conference Call October 20,
2011 at 10:00 a.m.
(ET)
The Company, as previously announced, indicated that
Monte N. Redman, President & CEO
will host an earnings conference call Thursday morning,
October 20, 2011 at 10:00 a.m. (ET). The toll-free dial-in
number is (888) 562-3356, ID# 12289136. A telephone replay
will be available on October 20, 2011
from 1:00 p.m. (ET) through midnight
October 29, 2011 (ET). The
replay number is (800) 585-8367, ID# 12289136. The conference
call will also be simultaneously webcast on the Company's website
www.astoriafederal.com and archived for one year.
Astoria Financial Corporation, with assets of $17.0 billion, is the holding company for Astoria
Federal Savings and Loan Association. Established in 1888,
Astoria Federal, with deposits in New
York totaling $11.3 billion,
is the largest thrift depository in New
York and embraces its philosophy of "Putting people
first" by providing the customers and local communities it
serves with quality financial products and services through 85
convenient banking office locations and multiple delivery channels,
including its enhanced website, 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 and loan production offices in
New York, an extensive broker
network covering fourteen states, primarily along the East Coast,
and the District of Columbia, and
through correspondent relationships covering fifteen 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," "may," "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
perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are
appropriate under the circumstances. These statements are not
guarantees of future performance and are subject to risks,
uncertainties and other factors (many of which are beyond our
control) that could cause actual results to differ materially from
future results expressed or implied by such forward-looking
statements. These factors include, without limitation, the
following: the timing and occurrence or non-occurrence of events
may be subject to circumstances beyond our control; there may be
increases in competitive pressure among financial institutions or
from non-financial institutions; changes in the interest rate
environment may reduce interest margins or affect the value of our
investments; changes in deposit flows, loan demand or real estate
values may adversely affect our business; changes in accounting
principles, policies or guidelines may cause our financial
condition to be perceived differently; general economic conditions,
either nationally or locally in some or all areas in which we do
business, or conditions in the real estate or securities markets or
the banking industry may be less favorable than we currently
anticipate; legislative or regulatory changes, including the
implementation of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, may adversely affect our business;
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
other 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 have 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
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2011
|
|
2010
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
$
|
110,886
|
$
|
67,476
|
|
Repurchase agreements
|
|
-
|
|
51,540
|
|
Securities
available-for-sale
|
|
402,023
|
|
561,953
|
|
Securities
held-to-maturity
|
|
|
|
|
|
(fair value of
$2,135,140 and $2,042,110, respectively)
|
|
2,075,029
|
|
2,003,784
|
|
Federal Home Loan Bank of New
York stock, at cost
|
|
126,759
|
|
149,174
|
|
Loans held-for-sale,
net
|
|
13,957
|
|
44,870
|
|
Loans receivable:
|
|
|
|
|
|
Mortgage
loans, net
|
|
13,029,240
|
|
13,911,200
|
|
Consumer and
other loans, net
|
|
290,337
|
|
311,847
|
|
|
|
|
|
13,319,577
|
|
14,223,047
|
|
Allowance
for loan losses
|
|
(178,351)
|
|
(201,499)
|
|
Total loans receivable,
net
|
|
|
13,141,226
|
|
14,021,548
|
|
Mortgage servicing rights,
net
|
|
8,254
|
|
9,204
|
|
Accrued interest
receivable
|
|
48,227
|
|
55,492
|
|
Premises and equipment,
net
|
|
120,373
|
|
133,362
|
|
Goodwill
|
|
|
185,151
|
|
185,151
|
|
Bank owned life
insurance
|
|
408,614
|
|
410,418
|
|
Real estate owned,
net
|
|
50,762
|
|
63,782
|
|
Other assets
|
|
285,387
|
|
331,515
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$
|
16,976,648
|
$
|
18,089,269
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Deposits
|
|
$
|
11,267,147
|
$
|
11,599,000
|
|
Reverse repurchase
agreements
|
|
|
1,700,000
|
|
2,100,000
|
|
Federal Home Loan Bank of New
York advances
|
|
|
1,944,000
|
|
2,391,000
|
|
Other borrowings, net
|
|
|
378,481
|
|
378,204
|
|
Mortgage escrow funds
|
|
|
132,622
|
|
109,374
|
|
Accrued expenses and other
liabilities
|
|
|
269,853
|
|
269,911
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
15,692,103
|
|
16,847,489
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Preferred stock, $1.00 par
value; (5,000,000 shares authorized;
|
|
|
|
|
|
|
none issued and
outstanding)
|
|
|
-
|
|
-
|
|
Common stock, $.01 par value;
(200,000,000 shares authorized;
|
|
|
|
|
|
|
166,494,888 shares
issued; and 98,537,391 and 97,877,469
shares outstanding,
respectively)
|
|
|
1,665
|
|
1,665
|
|
Additional paid-in
capital
|
|
|
871,153
|
|
864,744
|
|
Retained earnings
|
|
|
1,862,215
|
|
1,848,095
|
|
Treasury stock (67,957,497 and
68,617,419 shares, at cost,
respectively)
|
|
|
(1,404,318)
|
|
(1,417,956)
|
|
Accumulated other comprehensive
loss
|
|
|
(36,990)
|
|
(42,161)
|
|
Unallocated common stock held by
ESOP
|
|
|
|
|
|
|
(2,505,716 and
3,441,130 shares, respectively)
|
|
|
(9,180)
|
|
(12,607)
|
|
|
|
|
|
|
|
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
1,284,545
|
|
1,241,780
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
16,976,648
|
$
|
18,089,269
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Interest income:
|
|
|
|
|
|
|
|
|
|
One-to-four family mortgage
loans
|
$
|
105,769
|
$
|
130,936
|
$
|
332,314
|
$
|
408,640
|
|
Multi-family, commercial real
estate and
construction mortgage loans
|
|
39,338
|
|
48,446
|
|
124,915
|
|
149,169
|
|
Consumer and other
loans
|
|
2,461
|
|
2,656
|
|
7,477
|
|
7,975
|
|
Mortgage-backed and other
securities
|
|
19,670
|
|
25,336
|
|
63,432
|
|
86,319
|
|
Repurchase agreements and
interest-earning
cash accounts
|
|
54
|
|
188
|
|
221
|
|
257
|
|
Federal Home Loan Bank of New
York stock
|
|
1,432
|
|
1,999
|
|
5,386
|
|
6,416
|
|
Total interest income
|
|
168,724
|
|
209,561
|
|
533,745
|
|
658,776
|
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
33,486
|
|
46,144
|
|
106,156
|
|
149,182
|
|
Borrowings
|
|
44,594
|
|
57,392
|
|
139,694
|
|
177,268
|
|
Total interest
expense
|
|
78,080
|
|
103,536
|
|
245,850
|
|
326,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
90,644
|
|
106,025
|
|
287,895
|
|
332,326
|
|
Provision for loan
losses
|
|
10,000
|
|
20,000
|
|
27,000
|
|
100,000
|
|
Net interest income after
provision for loan losses
|
|
80,644
|
|
86,025
|
|
260,895
|
|
232,326
|
|
Non-interest income:
|
|
|
|
|
|
|
|
|
|
Customer service fees
|
|
11,867
|
|
12,463
|
|
35,696
|
|
39,128
|
|
Other loan fees
|
|
637
|
|
974
|
|
2,374
|
|
2,546
|
|
Mortgage banking income,
net
|
|
40
|
|
631
|
|
2,843
|
|
2,788
|
|
Income from bank owned life
insurance
|
|
2,738
|
|
2,383
|
|
7,602
|
|
6,735
|
|
Other
|
|
1,260
|
|
2,161
|
|
3,110
|
|
9,279
|
|
Total non-interest
income
|
|
16,542
|
|
18,612
|
|
51,625
|
|
60,476
|
|
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
General and
administrative:
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
39,496
|
|
35,999
|
|
113,197
|
|
105,884
|
|
Occupancy, equipment and
systems
|
|
16,178
|
|
16,506
|
|
48,667
|
|
49,592
|
|
Federal deposit insurance
premiums
|
|
10,837
|
|
6,509
|
|
27,529
|
|
19,722
|
|
Advertising
|
|
2,623
|
|
1,743
|
|
6,356
|
|
4,557
|
|
Other
|
|
9,462
|
|
10,147
|
|
28,420
|
|
35,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest
expense
|
|
78,596
|
|
70,904
|
|
224,169
|
|
214,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
expense
|
|
18,590
|
|
33,733
|
|
88,351
|
|
77,811
|
|
Income tax expense
|
|
7,374
|
|
12,282
|
|
32,906
|
|
27,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
11,216
|
$
|
21,451
|
$
|
55,445
|
$
|
49,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share
|
$
|
0.12
|
$
|
0.23
|
$
|
0.58
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share
|
$
|
0.12
|
$
|
0.23
|
$
|
0.58
|
$
|
0.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares
|
93,338,310
|
91,863,115
|
93,009,518
|
91,650,000
|
|
Diluted weighted average common
and common
|
|
|
|
|
|
|
|
|
|
equivalent
shares
|
93,338,310
|
91,863,115
|
93,009,518
|
91,650,045
|
|
|
|
|
|
|
|
|
|
|
|
|
ASTORIA FINANCIAL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
(Annualized)
|
|
|
|
|
|
|
(Annualized)
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
|
$
|
10,604,853
|
$
|
105,769
|
|
3.99
|
%
|
$
|
11,678,392
|
$
|
130,936
|
|
4.48
|
%
|
|
|
|
|
|
Multi-family, commercial
real
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
estate and
construction
|
|
2,515,957
|
|
39,338
|
|
6.25
|
|
|
3,201,711
|
|
48,446
|
|
6.05
|
|
|
|
|
|
Consumer and other loans
(1)
|
|
293,238
|
|
2,461
|
|
3.36
|
|
|
323,916
|
|
2,656
|
|
3.28
|
|
|
|
|
|
Total loans
|
|
13,414,048
|
|
147,568
|
|
4.40
|
|
|
15,204,019
|
|
182,038
|
|
4.79
|
|
|
|
|
|
Mortgage-backed and other
securities (2)
|
|
2,344,816
|
|
19,670
|
|
3.36
|
|
|
2,555,951
|
|
25,336
|
|
3.97
|
|
|
|
|
|
Repurchase agreements
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-earning cash accounts
|
|
115,228
|
|
54
|
|
0.19
|
|
|
332,171
|
|
188
|
|
0.23
|
|
|
|
|
|
Federal Home Loan Bank
stock
|
|
128,664
|
|
1,432
|
|
4.45
|
|
|
174,220
|
|
1,999
|
|
4.59
|
|
|
|
|
Total interest-earning
assets
|
|
16,002,756
|
|
168,724
|
|
4.22
|
|
|
18,266,361
|
|
209,561
|
|
4.59
|
|
|
|
|
Goodwill
|
|
185,151
|
|
|
|
|
|
|
185,151
|
|
|
|
|
|
|
|
|
Other non-interest-earning
assets
|
|
925,222
|
|
|
|
|
|
|
888,925
|
|
|
|
|
|
|
|
Total assets
|
$
|
17,113,129
|
|
|
|
|
|
$
|
19,340,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,799,738
|
|
2,316
|
|
0.33
|
|
$
|
2,407,180
|
|
2,448
|
|
0.41
|
|
|
|
|
|
Money market
|
|
646,966
|
|
1,491
|
|
0.92
|
|
|
342,453
|
|
385
|
|
0.45
|
|
|
|
|
|
NOW and demand
deposit
|
|
1,804,760
|
|
301
|
|
0.07
|
|
|
1,686,109
|
|
279
|
|
0.07
|
|
|
|
|
|
Liquid certificates of
deposit
|
|
328,426
|
|
193
|
|
0.24
|
|
|
585,814
|
|
689
|
|
0.47
|
|
|
|
|
|
Total core deposits
|
|
5,579,890
|
|
4,301
|
|
0.31
|
|
|
5,021,556
|
|
3,801
|
|
0.30
|
|
|
|
|
|
Certificates of
deposit
|
|
5,623,449
|
|
29,185
|
|
2.08
|
|
|
7,155,096
|
|
42,343
|
|
2.37
|
|
|
|
|
|
Total deposits
|
|
11,203,339
|
|
33,486
|
|
1.20
|
|
|
12,176,652
|
|
46,144
|
|
1.52
|
|
|
|
|
|
Borrowings
|
|
4,210,625
|
|
44,594
|
|
4.24
|
|
|
5,527,188
|
|
57,392
|
|
4.15
|
|
|
|
|
Total interest-bearing
liabilities
|
|
15,413,964
|
|
78,080
|
|
2.03
|
|
|
17,703,840
|
|
103,536
|
|
2.34
|
|
|
|
|
Non-interest-bearing
liabilities
|
|
421,604
|
|
|
|
|
|
|
405,907
|
|
|
|
|
|
|
|
Total liabilities
|
|
15,835,568
|
|
|
|
|
|
|
18,109,747
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
1,277,561
|
|
|
|
|
|
|
1,230,690
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
17,113,129
|
|
|
|
|
|
$
|
19,340,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/net
interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
rate spread (3)
|
|
|
$
|
90,644
|
|
2.19
|
%
|
|
|
$
|
106,025
|
|
2.25
|
%
|
|
|
Net interest-earning
assets/net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest margin (4)
|
$
|
588,792
|
|
|
|
2.27
|
%
|
$
|
562,521
|
|
|
|
2.32
|
%
|
|
|
Ratio of interest-earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing
liabilities
|
|
1.04x
|
|
|
|
|
|
|
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 included at average amortized
cost.
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASTORIA FINANCIAL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCE
SHEETS
|
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
Yield/
|
|
|
Average
|
|
|
|
Yield/
|
|
|
|
|
|
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
Balance
|
|
Interest
|
|
Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
(Annualized)
|
|
|
|
|
|
|
(Annualized)
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage loans (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family
|
$
|
10,701,179
|
$
|
332,314
|
|
4.14
|
%
|
$
|
11,856,597
|
$
|
408,640
|
|
4.60
|
%
|
|
|
|
|
|
Multi-family, commercial
real
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
estate and
construction
|
|
2,694,186
|
|
124,915
|
|
6.18
|
|
|
3,319,318
|
|
149,169
|
|
5.99
|
|
|
|
|
|
Consumer and other loans
(1)
|
|
300,502
|
|
7,477
|
|
3.32
|
|
|
328,264
|
|
7,975
|
|
3.24
|
|
|
|
|
|
Total loans
|
|
13,695,867
|
|
464,706
|
|
4.52
|
|
|
15,504,179
|
|
565,784
|
|
4.87
|
|
|
|
|
|
Mortgage-backed and other
securities (2)
|
|
2,441,661
|
|
63,432
|
|
3.46
|
|
|
2,897,654
|
|
86,319
|
|
3.97
|
|
|
|
|
|
Repurchase agreements
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest-earning cash accounts
|
|
153,312
|
|
221
|
|
0.19
|
|
|
181,366
|
|
257
|
|
0.19
|
|
|
|
|
|
Federal Home Loan Bank
stock
|
|
134,549
|
|
5,386
|
|
5.34
|
|
|
177,246
|
|
6,416
|
|
4.83
|
|
|
|
|
Total interest-earning
assets
|
|
16,425,389
|
|
533,745
|
|
4.33
|
|
|
18,760,445
|
|
658,776
|
|
4.68
|
|
|
|
|
Goodwill
|
|
185,151
|
|
|
|
|
|
|
185,151
|
|
|
|
|
|
|
|
|
Other non-interest-earning
assets
|
|
908,537
|
|
|
|
|
|
|
879,392
|
|
|
|
|
|
|
|
Total assets
|
$
|
17,519,077
|
|
|
|
|
|
$
|
19,824,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
$
|
2,770,622
|
|
7,812
|
|
0.38
|
|
$
|
2,324,727
|
|
7,023
|
|
0.40
|
|
|
|
|
|
Money market
|
|
476,046
|
|
2,370
|
|
0.66
|
|
|
336,482
|
|
1,117
|
|
0.44
|
|
|
|
|
|
NOW and demand
deposit
|
|
1,787,848
|
|
872
|
|
0.07
|
|
|
1,662,287
|
|
807
|
|
0.06
|
|
|
|
|
|
Liquid certificates of
deposit
|
|
384,259
|
|
699
|
|
0.24
|
|
|
626,625
|
|
2,281
|
|
0.49
|
|
|
|
|
|
Total core deposits
|
|
5,418,775
|
|
11,753
|
|
0.29
|
|
|
4,950,121
|
|
11,228
|
|
0.30
|
|
|
|
|
|
Certificates of
deposit
|
|
5,933,823
|
|
94,403
|
|
2.12
|
|
|
7,507,295
|
|
137,954
|
|
2.45
|
|
|
|
|
|
Total deposits
|
|
11,352,598
|
|
106,156
|
|
1.25
|
|
|
12,457,416
|
|
149,182
|
|
1.60
|
|
|
|
|
|
Borrowings
|
|
4,484,543
|
|
139,694
|
|
4.15
|
|
|
5,730,714
|
|
177,268
|
|
4.12
|
|
|
|
|
Total interest-bearing
liabilities
|
|
15,837,141
|
|
245,850
|
|
2.07
|
|
|
18,188,130
|
|
326,450
|
|
2.39
|
|
|
|
|
Non-interest-bearing
liabilities
|
|
417,391
|
|
|
|
|
|
|
416,514
|
|
|
|
|
|
|
|
Total liabilities
|
|
16,254,532
|
|
|
|
|
|
|
18,604,644
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
1,264,545
|
|
|
|
|
|
|
1,220,344
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
17,519,077
|
|
|
|
|
|
$
|
19,824,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/net
interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
rate spread (3)
|
|
|
$
|
287,895
|
|
2.26
|
%
|
|
|
$
|
332,326
|
|
2.29
|
%
|
|
|
Net interest-earning
assets/net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
interest margin (4)
|
$
|
588,248
|
|
|
|
2.34
|
%
|
$
|
572,315
|
|
|
|
2.36
|
%
|
|
|
Ratio of interest-earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to interest-bearing
liabilities
|
|
1.04x
|
|
|
|
|
|
|
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 included at average amortized
cost.
|
|
(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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASTORIA FINANCIAL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL RATIOS AND
OTHER DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the
|
|
|
At or For
the
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Returns and Financial
Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average stockholders'
equity
|
|
|
|
3.51
|
%
|
|
6.97
|
%
|
|
5.85
|
%
|
|
5.45
|
%
|
|
|
Return on average tangible
stockholders' equity (1)
|
|
|
|
4.11
|
|
8.21
|
|
|
6.85
|
|
6.43
|
|
|
|
Return on average
assets
|
|
|
|
0.26
|
|
0.44
|
|
|
0.42
|
|
0.34
|
|
|
|
General and administrative
expense to average assets
|
|
|
|
1.84
|
|
|
1.47
|
|
|
1.71
|
|
|
1.45
|
|
|
|
Efficiency ratio (2)
|
|
|
|
73.33
|
|
|
56.89
|
|
|
66.03
|
|
|
54.73
|
|
|
|
Net interest rate
spread
|
|
|
|
2.19
|
|
|
2.25
|
|
|
2.26
|
|
|
2.29
|
|
|
|
Net interest margin
|
|
|
|
2.27
|
|
|
2.32
|
|
|
2.34
|
|
|
2.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Non-GAAP Returns and
Financial Ratios (annualized) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP return on average
stockholders' equity
|
|
|
|
|
|
|
|
|
|
5.85
|
%
|
|
5.68
|
%
|
|
|
Non-GAAP return on average
tangible stockholders' equity (1)
|
|
|
|
|
|
|
|
|
|
6.85
|
|
|
6.70
|
|
|
|
Non-GAAP return on average
assets
|
|
|
|
|
|
|
|
|
|
0.42
|
|
|
0.35
|
|
|
|
Non-GAAP general and
administrative expense to average assets
|
|
|
|
|
|
|
|
|
|
1.71
|
|
|
1.39
|
|
|
|
Non-GAAP efficiency ratio
(2)
|
|
|
|
|
|
|
|
|
|
66.03
|
|
|
53.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data (dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
(4)
|
|
|
|
|
|
|
|
|
$
|
430,745
|
|
$
|
464,383
|
|
|
|
Non-performing loans
(4)
|
|
|
|
|
|
|
|
|
|
379,983
|
|
|
399,620
|
|
|
|
Loans
delinquent 90 days or more and still accruing interest
|
|
|
|
|
|
|
|
|
|
1,006
|
|
|
619
|
|
|
|
Non-accrual
loans
|
|
|
|
|
|
|
|
|
|
378,977
|
|
|
399,001
|
|
|
|
Loans 60-89 days
delinquent
|
|
|
|
|
|
|
|
|
|
44,723
|
|
|
70,359
|
|
|
|
Loans 30-59 days
delinquent
|
|
|
|
|
|
|
|
|
|
143,776
|
|
|
181,631
|
|
|
|
Net charge-offs
|
|
|
$
|
14,366
|
|
$
|
24,768
|
|
|
50,148
|
|
|
87,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans/total
loans
|
|
|
|
|
|
|
|
|
|
2.85
|
%
|
|
2.68
|
%
|
|
|
Non-performing loans/total
assets
|
|
|
|
|
|
|
|
|
|
2.24
|
|
|
2.11
|
|
|
|
Non-performing assets/total
assets
|
|
|
|
|
|
|
|
|
|
2.54
|
|
|
2.45
|
|
|
|
Allowance for loan
losses/non-performing loans
|
|
|
|
|
|
|
|
|
|
46.94
|
|
|
51.61
|
|
|
|
Allowance for loan
losses/non-accrual loans
|
|
|
|
|
|
|
|
|
|
47.06
|
|
|
51.69
|
|
|
|
Allowance for loan losses/total
loans
|
|
|
|
|
|
|
|
|
|
1.34
|
|
|
1.38
|
|
|
|
Net charge-offs to average loans
outstanding (annualized)
|
|
|
|
0.43
|
%
|
|
0.65
|
%
|
|
0.49
|
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios (Astoria
Federal)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
|
|
|
|
|
|
|
|
|
|
8.75
|
%
|
|
7.59
|
%
|
|
|
Leverage
|
|
|
|
|
|
|
|
|
|
8.75
|
|
|
7.59
|
|
|
|
Risk-based
|
|
|
|
|
|
|
|
|
|
16.18
|
|
|
14.13
|
|
|
|
Tier 1 risk-based
|
|
|
|
|
|
|
|
|
|
14.89
|
|
|
12.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid per common
share
|
|
|
$
|
0.13
|
|
$
|
0.13
|
|
$
|
0.39
|
|
$
|
0.39
|
|
|
|
Book value per share
(5)
|
|
|
|
|
|
|
|
|
|
13.38
|
|
|
13.18
|
|
|
|
Tangible book value per share
(6)
|
|
|
|
|
|
|
|
|
|
11.45
|
|
|
11.22
|
|
|
|
Tangible common stockholders'
equity/tangible assets (1) (7)
|
|
|
|
|
|
|
|
|
|
6.55
|
%
|
|
5.63
|
%
|
|
|
Mortgage loans serviced for
others (in thousands)
|
|
|
|
|
|
|
|
|
$
|
1,449,781
|
|
$
|
1,421,223
|
|
|
|
Full time equivalent
employees
|
|
|
|
|
|
|
|
1,604
|
|
|
1,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tangible stockholders'
equity represents stockholders' equity less goodwill.
|
|
(2) Efficiency ratio
represents general and administrative expense divided by the sum of
net interest income plus non-interest income.
|
|
(3) See the
"Reconciliation of GAAP Measures to Non-GAAP Measures" table
included in this release for a reconciliation of GAAP measures
to
non-GAAP
measures for the nine months ended September 30, 2010.
|
|
(4) Non-performing assets
and non-performing loans include, but are not limited to,
one-to-four family mortgage loans which at 180 days past due and
annually
thereafter
we obtained an estimate of collateral value and charged-off any
portion of the loan in excess of the estimated collateral value
less estimated selling
costs.
|
|
(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.
|
|
(7) Tangible assets
represent assets less goodwill.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASTORIA FINANCIAL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END OF PERIOD BALANCES AND
RATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At September
30, 2011
|
|
|
At June 30,
2011
|
|
|
At September
30, 2010
|
|
|
|
|
|
|
|
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
|
$
|
10,237,483
|
|
4.34
|
%
|
$
|
10,221,438
|
|
4.50
|
%
|
$
|
11,023,120
|
|
4.87
|
%
|
|
|
Multi-family, commercial
real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
construction
|
|
2,341,280
|
|
6.05
|
|
|
2,542,053
|
|
6.06
|
|
|
3,069,335
|
|
6.04
|
|
|
|
Mortgage-backed and other
securities (3)
|
|
2,477,052
|
|
3.65
|
|
|
2,415,376
|
|
3.73
|
|
|
2,591,203
|
|
4.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings
|
|
2,760,922
|
|
0.25
|
|
|
2,838,239
|
|
0.40
|
|
|
2,435,287
|
|
0.40
|
|
|
|
Money market
|
|
864,253
|
|
0.94
|
|
|
397,148
|
|
0.46
|
|
|
349,883
|
|
0.45
|
|
|
|
NOW and demand
deposit
|
|
1,809,662
|
|
0.06
|
|
|
1,809,863
|
|
0.06
|
|
|
1,662,000
|
|
0.06
|
|
|
|
Liquid certificates of
deposit
|
|
301,221
|
|
0.19
|
|
|
363,393
|
|
0.25
|
|
|
546,626
|
|
0.38
|
|
|
|
Total core
deposits
|
|
5,736,058
|
|
0.29
|
|
|
5,408,643
|
|
0.28
|
|
|
4,993,796
|
|
0.29
|
|
|
|
Certificates of
deposit
|
|
5,531,089
|
|
2.05
|
|
|
5,801,977
|
|
2.09
|
|
|
7,113,490
|
|
2.33
|
|
|
|
Total deposits
|
|
11,267,147
|
|
1.15
|
|
|
11,210,620
|
|
1.22
|
|
|
12,107,286
|
|
1.49
|
|
|
|
Borrowings, net
|
|
4,022,481
|
|
4.14
|
|
|
4,286,389
|
|
4.20
|
|
|
5,213,111
|
|
4.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 non-performing loans.
|
|
(3)
Securities available-for-sale are reported at fair value and
securities held-to-maturity are reported at amortized cost.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASTORIA FINANCIAL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP MEASURES
TO NON-GAAP MEASURES
|
|
|
|
|
|
|
|
|
(In Thousands, Except Per Share
Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and expense and
related financial ratios determined in accordance with GAAP (GAAP
measures) excluding the adjustments detailed in the following table
(non-GAAP measures) provide a meaningful comparison for effectively
evaluating Astoria's operating results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine
Months Ended
|
|
|
|
|
|
September
30, 2010
|
|
|
|
|
|
GAAP
|
Adjustments
(1)
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
$332,326
|
|
$
-
|
|
$332,326
|
|
Provision for loan
losses
|
|
|
100,000
|
|
-
|
|
100,000
|
|
Net interest income after
provision for loan losses
|
|
|
232,326
|
|
-
|
|
232,326
|
|
Non-interest income
|
|
|
60,476
|
|
(4,635)
|
|
55,841
|
|
Non-interest expense (general
and administrative expense)
|
|
|
214,991
|
|
(7,850)
|
|
207,141
|
|
Income before income tax
expense
|
|
|
77,811
|
|
3,215
|
|
81,026
|
|
Income tax expense
|
|
|
27,888
|
|
1,133
|
|
29,021
|
|
Net income
|
|
|
$ 49,923
|
|
$ 2,082
|
|
$ 52,005
|
|
Basic earnings per common
share
|
|
|
$0.53
|
|
$0.02
|
|
$0.55
|
|
Diluted earnings per common
share
|
|
|
$0.53
|
|
$0.02
|
|
$0.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP returns are
calculated substituting non-GAAP net income for net income in the
corresponding ratio calculation, while the non-GAAP general and
administrative expense to average assets ratio substitutes non-GAAP
general and administrative expense (non-GAAP non-interest expense)
for general and administrative expense (non-interest expense) in
the corresponding ratio calculation. Similarly, the non-GAAP
efficiency ratio substitutes non-GAAP non-interest income and
non-GAAP general and administrative expense for non-interest income
and general and administrative expense in the corresponding ratio
calculation.
|
|
|
|
(1) Non-interest income
adjustment relates to the $6.2 million goodwill litigation
settlement, partially offset by the $1.5 million impairment
write-down of premises and equipment, recorded in the 2010 second
quarter. Non-interest expense adjustment relates to the
McAnaney litigation settlement recorded in the 2010 second
quarter.
|
|
|
|
|
|
|
|
|
|
|
ASTORIA FINANCIAL CORPORATION
AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
One-to-Four Family Residential
Loan Portfolio - Geographic Analysis
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
At September
30, 2011
|
|
|
|
|
|
|
Non-performing loans
|
|
State
|
Total
loans
|
|
Non-performing loans
|
|
as % of
total loans
|
|
New York
|
|
|
|
|
|
|
Full Income
|
$2,722.0
|
|
$18.7
|
|
0.69%
|
|
Alt A < 70%
LTV
|
$211.7
|
|
$12.1
|
|
5.72%
|
|
Alt A 70%-80%
LTV
|
$60.3
|
|
$9.8
|
|
16.25%
|
|
State Total
|
$2,994.0
|
|
$40.6
|
|
1.36%
|
|
|
|
|
|
|
|
|
Illinois
|
|
|
|
|
|
|
Full Income
|
$1,073.0
|
|
$20.0
|
|
1.86%
|
|
Alt A < 70%
LTV
|
$109.4
|
|
$12.5
|
|
11.43%
|
|
Alt A 70%-80%
LTV
|
$104.0
|
|
$17.0
|
|
16.35%
|
|
State Total
|
$1,286.4
|
|
$49.5
|
|
3.85%
|
|
|
|
|
|
|
|
|
Connecticut
|
|
|
|
|
|
|
Full Income
|
$892.2
|
|
$14.0
|
|
1.57%
|
|
Alt A < 70%
LTV
|
$102.9
|
|
$12.0
|
|
11.66%
|
|
Alt A 70%-80%
LTV
|
$46.0
|
|
$6.1
|
|
13.26%
|
|
State Total
|
$1,041.1
|
|
$32.1
|
|
3.08%
|
|
|
|
|
|
|
|
|
New Jersey
|
|
|
|
|
|
|
Full Income
|
$604.9
|
|
$26.7
|
|
4.41%
|
|
Alt A < 70%
LTV
|
$80.2
|
|
$9.9
|
|
12.34%
|
|
Alt A 70%-80%
LTV
|
$78.7
|
|
$20.0
|
|
25.41%
|
|
State Total
|
$763.8
|
|
$56.6
|
|
7.41%
|
|
|
|
|
|
|
|
|
Massachusetts
|
|
|
|
|
|
|
Full Income
|
$666.2
|
|
$5.8
|
|
0.87%
|
|
Alt A < 70%
LTV
|
$61.6
|
|
$2.8
|
|
4.55%
|
|
Alt A 70%-80%
LTV
|
$25.8
|
|
$2.6
|
|
10.08%
|
|
State Total
|
$753.6
|
|
$11.2
|
|
1.49%
|
|
|
|
|
|
|
|
|
California
|
|
|
|
|
|
|
Full Income
|
$463.3
|
|
$14.5
|
|
3.13%
|
|
Alt A < 70%
LTV
|
$137.7
|
|
$9.4
|
|
6.83%
|
|
Alt A 70%-80%
LTV
|
$120.9
|
|
$11.1
|
|
9.18%
|
|
State Total
|
$721.9
|
|
$35.0
|
|
4.85%
|
|
|
|
|
|
|
|
|
Virginia
|
|
|
|
|
|
|
Full Income
|
$491.8
|
|
$5.9
|
|
1.20%
|
|
Alt A < 70%
LTV
|
$65.1
|
|
$0.7
|
|
1.08%
|
|
Alt A 70%-80%
LTV
|
$80.0
|
|
$5.8
|
|
7.25%
|
|
State Total
|
$636.9
|
|
$12.4
|
|
1.95%
|
|
|
|
|
|
|
|
|
Maryland
|
|
|
|
|
|
|
Full Income
|
$483.6
|
|
$18.3
|
|
3.78%
|
|
Alt A < 70%
LTV
|
$66.0
|
|
$6.5
|
|
9.85%
|
|
Alt A 70%-80%
LTV
|
$72.6
|
|
$15.1
|
|
20.80%
|
|
State Total
|
$622.2
|
|
$39.9
|
|
6.41%
|
|
|
|
|
|
|
|
|
Washington
|
|
|
|
|
|
|
Full Income
|
$304.0
|
|
$2.3
|
|
0.76%
|
|
Alt A < 70%
LTV
|
$3.4
|
|
$0.0
|
|
0.00%
|
|
Alt A 70%-80%
LTV
|
$1.7
|
|
$0.4
|
|
23.53%
|
|
State Total
|
$309.1
|
|
$2.7
|
|
0.87%
|
|
|
|
|
|
|
|
|
Texas
|
|
|
|
|
|
|
Full Income
|
$246.3
|
|
$0.0
|
|
0.00%
|
|
Alt A < 70%
LTV
|
$0.1
|
|
$0.0
|
|
0.00%
|
|
Alt A 70%-80%
LTV
|
$0.0
|
|
$0.0
|
|
0.00%
|
|
State Total
|
$246.4
|
|
$0.0
|
|
0.00%
|
|
|
|
|
|
|
|
|
Other States*
|
|
|
|
|
|
|
Full Income
|
$1,015.3
|
|
$24.6
|
|
2.42%
|
|
Alt A < 70%
LTV
|
$103.8
|
|
$10.2
|
|
9.83%
|
|
Alt A 70%-80%
LTV
|
$67.9
|
|
$10.1
|
|
14.87%
|
|
Other States Total
|
$1,187.0
|
|
$44.9
|
|
3.78%
|
|
|
|
|
|
|
|
|
Total all states
|
|
|
|
|
|
|
Full Income
|
$8,962.6
|
|
$150.8
|
|
1.68%
|
|
Alt A < 70%
LTV
|
$941.9
|
|
$76.1
|
|
8.08%
|
|
Alt A 70%-80%
LTV
|
$657.9
|
|
$98.0
|
|
14.90%
|
|
Grand total
|
$10,562.4
|
|
$324.9
|
|
3.08%
|
|
|
|
|
|
|
|
|
* Includes Florida with $203.3
million total loans, of which $23.2 million are non-performing
loans.
|
|
Note: LTVs are based on
current principal balances and original appraised values
|
|
|
|
|
|
|
|
SOURCE Astoria Financial Corporation