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.
SOURCE Astoria Financial Corporation
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Related links:
http://www.astoriafederal.com
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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