LAKE SUCCESS, N.Y., Jan. 14 /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 $9.6 million, or
$0.14 per diluted share, in the quarter ending December 31, 2004 related to
$120 million face value of perpetual preferred stock issued by Freddie Mac, a
government sponsored entity. The perpetual preferred stock issues are
investment grade securities (AA- by S&P, 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 or related capital ratios. George L. Engelke,
Jr., Chairman, President and CEO of Astoria commented, "The decision to
reclassify the unrealized mark-to-market loss on these securities to an
other-than-temporary impairment charge is based on a very conservative
interpretation of accounting literature and does not reflect the expected
long-term value of these investment grade securities."
Astoria Financial Corporation, as previously announced, expects to report
fourth quarter and full year financial results on Thursday morning, January
20, 2005. Fourth quarter 2004 diluted earnings per share, absent this charge,
are expected to be within a range of between $0.83 - $0.85. Including this
charge, under generally accepted accounting principles, fourth quarter diluted
earnings per share are expected to be within a range of between $0.69 - $0.71.
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.8 billion is the fifth
largest thrift institution in the United States. Established in 1888,
Astoria Federal is the largest thrift depository headquartered in New York
with deposits of $12.2 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 commands the fourth largest deposit
market share in the attractive Long Island market, which includes Brooklyn,
Queens, Nassau and Suffolk counties with a population exceeding that of 39
individual states. Astoria originates mortgage loans through its banking
offices and loan production offices in New York, an extensive broker network
in twenty-four states, primarily the East Coast, and through correspondent
relationships in forty-four states.
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.
SOURCE Astoria Financial Corporation
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Related links:
http://ir.astoriafederal.com
http://www.astoriafederal.com
Company News On-Call:
http://www.prnewswire.com/comp/104529.html
CONTACT:
Peter J. Cunningham, First Vice President,
Investor Relations of Astoria Financial Corporation,
+1-516-327-7877, ir@astoriafederal.com
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