Quarterly Cash Dividend of $0.26 Per Common Share Declared
LAKE SUCCESS, N.Y., Jan. 23 /PRNewswire-FirstCall/ -- 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 $19.7 million (operating income of $33.0 million),
or $0.22 diluted earnings per share ("EPS") (operating EPS of $0.36), for
the quarter ended December 31, 2007, compared to $37.1 million, or $0.39
EPS, for the 2006 fourth quarter.
For the year ended December 31, 2007, net income totaled $124.8 million
(operating income of $138.1 million), or $1.36 EPS (operating EPS of
$1.50), compared to $174.9 million (operating income of $178.6 million), or
$1.80 EPS (operating EPS of $1.84), for the year ended December 31, 2006.
Included in the fourth quarter and full year 2007 results is an other-
than-temporary impairment, after-tax, non-cash charge of $13.3 million, or
$0.15 EPS and $0.14 EPS, respectively, relating to Freddie Mac preferred
stock, as reported in the Company's press release dated January 17, 2008.
Operating income and operating EPS, representing net income and EPS
determined in accordance with generally accepted accounting principles
("GAAP") excluding the effects of the after-tax, non-cash charge noted
above and a $3.7 million, after-tax, charge for the termination of our
interest rate swap agreements in the 2006 first quarter, provide a
meaningful comparison for effectively evaluating Astoria's operating
results. For a reconciliation of operating income and operating EPS to GAAP
net income and EPS, please refer to the tables titled Reconciliation of
GAAP net income to non-GAAP earnings.
Commenting on the quarter and full year results, George L. Engelke,
Jr., Chairman and Chief Executive Officer of Astoria, noted, "The 2007
fourth quarter and full year operating results were in line with our
expectations and continued to reflect the negative impact of a
flat-to-inverted yield curve that persisted through the summer.
Subsequently, four interest rate reductions by the Federal Reserve
beginning in September, totaling 175 basis points, have produced a
positively sloped yield curve and a more favorable interest rate
environment for us going forward."
Board Declares Quarterly Cash Dividend of $0.26 Per Share
The Board of Directors of the Company, at their January 23, 2008
meeting, declared a quarterly cash dividend of $0.26 per common share. The
dividend is payable on March 3, 2008 to shareholders of record as of
February 15, 2008. This represents the fifty-first consecutive quarterly
cash dividend declared by the Company.
Twelfth Stock Repurchase Program Continues
During the 2007 fourth quarter, Astoria repurchased 505,000 shares of
its common stock at an average cost of $25.12 per share. For the year ended
December 31, 2007, Astoria repurchased a total of 3.0 million shares,
completing its eleventh stock repurchase program and commencing its twelfth
stock repurchase program in the 2007 third quarter. Under the current stock
repurchase program, 8.9 million shares remain available for repurchase as
of January 1, 2008.
Board Sets Annual Shareholders' Meeting Date
The Board of Directors, at their January 23, 2008 meeting, established
May 21, 2008 as the date for the Astoria Annual Meeting of Shareholders,
with a voting record date of March 26, 2008.
Supervisory Goodwill Litigation Update
In the case of the Long Island Savings Bank goodwill claim for breach
of contract, the U.S. Court of Appeals for the Federal Circuit, on December
28, 2007, denied both Astoria's petition for a panel rehearing and a
rehearing en banc and upheld the Court's most recent opinion which reversed
an Astoria award of $435.8 million. Management is carefully reviewing its
options with respect to any further legal action that may be taken in this
matter.
In the case of the Fidelity New York goodwill claim, on January 8,
2008, the U.S. Court of Federal Claims awarded Astoria $16.0 million in
damages from the U.S. government for breach of contract. Management is
carefully reviewing the decision and anticipates that the U.S. government,
given its practice in similar cases, may file an appeal. If so, no
assurance can be given as to the timing, content or ultimate outcome of the
appeal.
Fourth Quarter and Full Year Earnings Summary
Net interest income, before the provision for loan losses, for the
quarter ended December 31, 2007 increased to $81.9 million from $81.2
million for the 2007 third quarter, and declined from $86.9 million for the
2006 fourth quarter. For the year ended December 31, 2007, net interest
income, before provision for loan losses, totaled $333.5 million compared
to $390.4 million for the year ended December 31, 2006.
Astoria's net interest margin for the quarter ended December 31, 2007
was 1.57% compared to 1.58% for the 2007 third quarter and 1.69% for the
quarter ended December 31, 2006. For the year ended December 31, 2007, the
net interest margin was 1.62% compared to 1.87% for the year ended December
31, 2006. The year-over-year quarter and full year decreases are due to the
cost of interest-bearing liabilities rising more rapidly than the yield on
interest-earning assets. Commenting on the net interest margin, Mr. Engelke
noted, "The margin for the 2007 fourth quarter, in line with our
expectations, represents an inflection point, with gradual improvement
expected throughout 2008."
Non-interest income for the quarter ended December 31, 2007 totaled
$2.1 million, including the previously announced other-than-temporary
impairment non-cash pre-tax charge of $20.5 million, compared to $23.9
million for the comparable 2006 period. The decrease is primarily due to
the impairment charge noted above and a decrease of $1.7 million in
mortgage banking income, net, as detailed below. For the year ended
December 31, 2007, non interest income totaled $75.8 million, including the
aforementioned non-cash charge, compared to $91.4 million for 2006,
including the $5.5 million pre-tax charge for the termination of interest
rate swap agreements as noted earlier.
The components of mortgage banking (loss) income, net, which is
included in non-interest income, are detailed below:
(Dollars in millions) 4Q07 4Q06 FY 2007 FY 2006
Loan servicing fees $1.0 $1.0 $4.1 $4.4
Amortization of MSR* (0.9) (0.9) (3.5) (3.7)
MSR* valuation adjustments (1.2) 0.5 (1.0) 2.0
Net gain on sale of loans 0.4 0.4 1.7 2.1
Mortgage banking (loss) income, net $(0.7) $1.0 $1.3 $4.8
* Mortgage servicing rights
General and administrative expense ("G&A") for the quarter ended
December 31, 2007 increased $2.4 million, to $58.9 million from $56.5
million for the 2007 third quarter, and $1.9 million from $57.0 million for
the 2006 fourth quarter. The linked quarter and year-over-year quarter
increases are primarily due to increased compensation and benefits expense,
including increased ESOP expense, and goodwill litigation expense partially
offset by lower advertising expense.
For the full year 2007, G&A increased $9.5 million to $231.3 million
from $221.8 million for the full year 2006. The increase was primarily due
to increases in compensation and benefits expense and goodwill litigation
expense, partially offset by lower advertising expense.
Income tax expense for the quarter ended December 31, 2007 decreased
$13.2 million from the 2006 fourth quarter to $3.5 million due primarily to
lower net income resulting from the non-cash pre-tax impairment charge of
$20.5 million incurred in the 2007 fourth quarter. It is expected that the
effective tax rate for 2008 should return to a more normal level of
approximately 31%.
Balance Sheet Summary
For the 2007 fourth quarter, the loan portfolio increased $201.7
million from the prior quarter, or 5% on an annualized basis, to $16.2
billion at December 31, 2007. Mortgage loan originations and purchases
totaled $882.1 million for the quarter ended December 31, 2007 compared to
$1.1 billion for the 2006 fourth quarter.
For the year ended December 31, 2007, the loan portfolio increased $1.2
billion, or 8%, and mortgage loan originations and purchases totaled $4.2
billion compared to $3.4 billion for 2006.
For the 2007 fourth quarter, the one-to-four family mortgage loan
portfolio increased $278.6 million from the prior quarter, or 10%
annualized, to $11.6 billion at December 31, 2007. One-to-four family loan
originations and purchases totaled $816.1 million for the 2007 fourth
quarter compared to $948.7 million for the 2006 fourth quarter. Of the 2007
fourth quarter one- to-four family loan production for portfolio, 71%
consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans.
For the year ended December 31, 2007, the one-to-four family mortgage
loan portfolio increased $1.4 billion, or 14%. Loan originations and
purchases totaled $3.8 billion for 2007 compared to $2.7 billion for 2006.
The loan-to- value ratio of the 2007 one-to-four family loan production for
portfolio averaged 65% at origination and the loan amount averaged
approximately $550,000. Of the 2007 production for portfolio, 78% consisted
of 3/1 and 5/1 hybrid adjustable rate mortgage loans.
For the quarter ended December 31, 2007, the multi-family and
commercial real estate ("CRE") loan portfolio decreased $56.0 million from
the prior quarter, primarily due to lower loan originations which totaled
$66.0 million compared to $105.0 million for the 2006 fourth quarter. At
December 31, 2007, the combined multi-family and CRE loan portfolio totaled
$4.0 billion, or 25% of total loans.
For the year ended December 31, 2007, the multi-family and CRE loan
portfolio decreased $110.4 million primarily due to lower loan originations
which totaled $410.4 million compared to $664.4 million for the comparable
2006 period. The loan-to-value ratio of the 2007 multi-family/CRE loan
production averaged 65% at origination and the loan amount averaged
approximately $1.3 million.
Asset Quality
For the quarter ended December 31, 2007, non-performing loans increased
$24.0 million from the previous quarter to $106.3 million, or 0.49% of
total assets, primarily due to an increase in one-to-four family
non-performing loans. Loans that have missed only two payments and are
currently included in non-performing loans totaled $38.3 million at
December 31, 2007, an increase of $14.2 million from the previous quarter
and represent 59% of the total increase in non-performing loans in the 2007
fourth quarter. At December 31, 2007, one-to-four family non-performing
loans totaled $89.4 million and multi- family non-performing loans totaled
$14.2 million. Mr. Engelke noted, "While we have never actively
participated in high-risk residential mortgage lending, as a geographically
diversified lender, we are not immune to some negative consequences arising
from overall economic weakness and, in particular, a sharp downturn in the
housing industry nationally. Accordingly, although our total loan
delinquencies remained stable on a linked quarter basis, our non-
performing loans increased as noted above; therefore, we anticipate that
our non-performing loans and credit costs could increase somewhat during
2008, but our asset quality should remain strong as we maintain
conservative underwriting standards."
Net loan charge-offs for the quarter ended December 31, 2007 totaled
$1.3 million compared to $1.6 million for the previous quarter and net
recoveries of $12,000 for the 2006 fourth quarter. For the year ended
December 31, 2007, net loan charge-offs totaled $3.5 million, or just two
basis points of average loans, compared to $1.2 million, or one basis point
of average loans, for the year ended December 31, 2006.
For the quarter ended December 31, 2007, Astoria recorded a $2.0
million provision for loan losses, up from $500,000 recorded in the
previous quarter. For the year ended December 31, 2007, provision for loan
losses totaled $2.5 million compared to no provision in 2006.
For the quarter and year ended December 31, 2007, deposits decreased
$216.6 million and $174.6 million, respectively, to $13.0 billion. "During
the fourth quarter, retail deposit pricing remained very competitive even
as short-term market interest rates declined. As a result of our efforts to
maintain deposit pricing discipline, we have taken advantage of lower cost
borrowings for funding some of our loan growth during this quarter," Mr.
Engelke noted.
For the quarter and year ended December 31, 2007, securities decreased
$197.7 million and $968.8 million, respectively, to $4.4 billion, or 20% of
total assets at December 31, 2007. For the quarter and year ended December
31, 2007, borrowings increased $255.2 million and $348.7 million,
respectively, to $7.2 billion, or 33% of total assets at December 31, 2007.
Total assets were essentially unchanged from the previous quarter and
increased $164.8 million from December 31, 2006 to $21.7 billion at
December 31, 2007.
Key balance sheet highlights, reflecting the improvement in the quality
of the Company's balance sheet since December 31, 1999, follow:
($ in millions) Cumu-
lative
12/31/99 12/31/01 12/31/03 12/31/05 12/31/06 12/31/07 % Change
Assets $22,700 $22,672 $22,462 $22,380 $21,555 $21,719 (4%)
Loans $10,286 $12,167 $12,687 $14,392 $14,972 $16,155 + 57%
Securities $10,763 $8,013 $8,448 $6,572 $5,340 $4,371 (59%)
Deposits $9,555 $10,904 $11,187 $12,810 $13,224 $13,049 + 37%
Borrowings $11,528 $9,826 $9,632 $7,938 $6,836 $7,185 (38%)
The following table illustrates this improvement on an outstanding per
share basis:
Amount 12/31/ 12/31/ 12/31/ 12/31/ 12/31/ 12/31/ %
per share 99 01 03 05 06 07 Change CAGR
Loans $66.28 $89.36 $107.51 $137.11 $152.44 $168.76 155% 12%
Deposits $61.57 $80.09 $94.80 $122.04 $134.65 $136.32 121% 10%
Stockholders' equity was $1.2 billion, or 5.58% of total assets at
December 31, 2007. Astoria Federal continues to maintain capital ratios in
excess of regulatory requirements with core, tangible and risk-based
capital ratios of 6.58%, 6.58% and 12.04%, respectively, at December 31,
2007.
Future Outlook
Commenting on the outlook for 2008, Mr. Engelke stated, "The decrease
in short-term interest rates by the Federal Reserve has produced a more
positively sloped yield curve and a more favorable interest rate
environment for us going forward. We anticipate the yield curve will remain
positively sloped and steepen further in 2008 which should result in
improved opportunities for earnings growth and an expansion of our net
interest margin. Our focus going forward will be to continue to capitalize
on residential mortgage market opportunities that result in improved loan
volumes and mortgage spreads. Loan growth may be tempered somewhat as we
have reduced the number of states in which we will originate residential
loans due to the advanced economic declines in those markets. This is
evidenced by the loan pipeline at December 31, 2007 which, at $1.1 billion,
is $221.4 million lower than the loan pipeline at September 30, 2007.
Deposit growth will remain a focus; however, in the near term, if
competitive pricing continues, we will fund some of our loan growth with
lower cost borrowings. We expect to continue to maintain the Company's
tangible capital levels between 4.50% and 4.75%."
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, with deposits in New York totaling
$13.0 billion, is the largest thrift depository headquartered 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 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.
Earnings Conference Call January 24, 2008 at 10:00 a.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke will
host an earnings conference call Thursday morning, January 24, 2008 at
10:00 a.m. (ET). The toll-free dial-in number is (888) 562-3356, conference
ID #28876927. A telephone replay will be available on January 24, 2008 from
1:00 p.m. (ET) through Friday, February 1, 2008. The replay number is (800)
642-1687, ID # 28876927. 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 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.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share Data)
At At
December 31, December 31,
2007 2006
ASSETS
Cash and due from banks $93,972 $134,016
Repurchase agreements 24,218 71,694
Securities available-for-sale 1,313,306 1,560,325
Securities held-to-maturity (fair value
of $3,013,014 and $3,681,514, respectively) 3,057,544 3,779,356
Federal Home Loan Bank of New York stock,
at cost 201,490 153,640
Loans held-for-sale, net 6,306 16,542
Loans receivable:
Mortgage loans, net 15,791,962 14,532,503
Consumer and other loans, net 363,052 439,188
16,155,014 14,971,691
Allowance for loan losses (78,946) (79,942)
Total loans receivable, net 16,076,068 14,891,749
Mortgage servicing rights, net 12,910 15,944
Accrued interest receivable 79,132 78,761
Premises and equipment, net 139,563 145,231
Goodwill 185,151 185,151
Bank owned life insurance 398,280 385,952
Other assets 131,428 136,158
TOTAL ASSETS $21,719,368 $21,554,519
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $13,049,438 $13,224,024
Reverse repurchase agreements 3,730,000 4,480,000
Federal Home Loan Bank of New York
advances 3,058,000 1,940,000
Other borrowings, net 396,658 416,002
Mortgage escrow funds 129,412 132,080
Accrued expenses and other liabilities 144,516 146,659
TOTAL LIABILITIES 20,508,024 20,338,765
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
95,728,562, and 98,211,827 shares
outstanding, respectively) 1,665 1,665
Additional paid-in capital 846,227 828,940
Retained earnings 1,883,902 1,856,528
Treasury stock (70,766,326 and
68,283,061 shares, at cost,
respectively) (1,459,865) (1,390,495)
Accumulated other comprehensive loss (39,476) (58,330)
Unallocated common stock held by ESOP
(5,761,391 and 6,155,918 shares,
respectively) (21,109) (22,554)
TOTAL STOCKHOLDERS' EQUITY 1,211,344 1,215,754
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $21,719,368 $21,554,519
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,
2007 2006 2007 2006
Interest income:
Mortgage loans:
One-to-four family $159,134 $131,879 $587,863 $510,105
Multi-family,
commercial real
estate and
construction 62,376 67,064 254,536 259,242
Consumer and other
loans 6,700 8,817 30,178 35,735
Mortgage-backed and
other securities 50,913 62,162 219,040 267,535
Federal funds sold
and repurchase
agreements 259 1,205 2,071 6,410
Federal Home Loan
Bank of New York
stock 3,388 2,252 11,634 7,787
Total interest income 282,770 273,379 1,105,322 1,086,814
Interest expense:
Deposits 114,635 109,413 456,039 384,770
Borrowings 86,202 77,110 315,755 311,659
Total interest
expense 200,837 186,523 771,794 696,429
Net interest income 81,933 86,856 333,528 390,385
Provision for loan
losses 2,000 - 2,500 -
Net interest income
after provision for
loan losses 79,933 86,856 331,028 390,385
Non-interest income:
Customer service fees 15,713 15,615 62,961 64,823
Other loan fees 1,258 1,303 4,739 4,058
Net gain on sales of
securities 216 - 2,208 -
Other-than-temporary
impairment write-down
of securities (20,484) - (20,484) -
Mortgage banking
(loss) income, net (661) 1,035 1,334 4,845
Income from bank owned
life insurance 4,381 4,066 17,109 16,129
Other 1,685 1,843 7,923 1,495
Total non-interest
income 2,108 23,862 75,790 91,350
Non-interest expense:
General and
administrative:
Compensation and
benefits 32,279 29,985 124,036 116,408
Occupancy,
equipment and
systems 16,580 16,825 65,754 66,034
Federal deposit
insurance premiums 393 409 1,595 1,672
Advertising 1,281 2,079 6,563 7,747
Other 8,369 7,662 33,325 29,942
Total non-interest
expense 58,902 56,960 231,273 221,803
Income before income
tax expense 23,139 53,758 175,545 259,932
Income tax expense 3,466 16,652 50,723 85,035
Net income $19,673 $37,106 $124,822 $174,897
Basic earnings per
common share $0.22 $0.40 $1.38 $1.85
Diluted earnings per
common share $0.22 $0.39 $1.36 $1.80
Basic weighted
average common
shares 89,680,349 92,354,297 90,490,118 94,754,732
Diluted weighted
average common and
common equivalent
shares 91,117,693 94,735,740 92,092,725 97,280,150
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
For the At or For the
Three Months Ended Twelve Months Ended
December 31, December 31,
2007 2006 2007 2006
(Annualized)
Selected Returns and
Financial Ratios
Return on average
stockholders' equity 6.55% 11.99% 10.39% 13.73%
Return on average tangible
stockholders' equity (1) 7.74 14.09 12.28 16.06
Return on average assets 0.36 0.69 0.58 0.80
General and administrative
expense to average assets 1.08 1.06 1.07 1.01
Efficiency ratio (2) 70.09 51.45 56.50 46.04
Net interest rate spread (3) 1.45 1.57 1.50 1.76
Net interest margin (4) 1.57 1.69 1.62 1.87
Selected Non-GAAP Returns and
Financial Ratios (5)
Non-GAAP return on average
stockholders' equity 10.98% 11.99% 11.50% 14.01%
Non-GAAP return on average
tangible stockholders'
equity (1) 12.98 14.09 13.59 16.40
Non-GAAP return on average
assets 0.61 0.69 0.64 0.82
Non-GAAP efficiency ratio (2) 56.35 51.45 53.81 45.53
Asset Quality Data (dollars
in thousands)
Non-performing loans/total
loans 0.66% 0.40%
Non-performing loans/total
assets 0.49 0.28
Non-performing assets/
total assets 0.53 0.28
Allowance for loan losses/
non-performing loans 74.25 134.55
Allowance for loan losses/
non-accrual loans 74.58 135.66
Allowance for loan losses/
total loans 0.49 0.53
Net charge-offs to average
loans outstanding 0.03% 0.00% 0.02 0.01
Non-performing assets $115,443 $60,043
Non-performing loans 106,328 59,416
Loans 90 days past
maturity but still
accruing interest 474 488
Non-accrual loans (6) 105,854 58,928
Net charge-offs $1,308 $(12) 3,496 1,217
Capital Ratios
(Astoria Federal)
Tangible 6.58% 6.61%
Core 6.58 6.61
Risk-based 12.04 12.25
Other Data
Cash dividends paid
per common share $0.26 $0.24 $1.04 $0.96
Dividend payout ratio 118.18% 61.54% 76.47% 53.33%
Book value per share (7) $13.46 $13.21
Tangible book value per
share (8) $11.41 $11.20
Tangible stockholders'
equity/tangible
assets (1) (9) 4.77% 4.82%
Mortgage loans serviced
for others (in thousands) $1,272,220 $1,363,591
Full time equivalent
employees 1,615 1,626
(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) 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) The information presented for the three and twelve months ended
December 31, 2007 and the twelve months ended December 31, 2006
represents pro forma calculations which are not in conformity with
U.S. generally accepted accounting principles, or GAAP. The 2007
information excludes the $13.3 million, after tax, ($20.5 million,
before tax), other-than-temporary impairment write-down of securities
charge recorded in the 2007 fourth quarter. The 2006 information
excludes the $3.7 million, after tax, ($5.5 million, before tax),
charge for the termination of our interest rate swap agreements
recorded in the 2006 first quarter. See page 14 for a reconciliation
of GAAP net income to non-GAAP earnings for the three and twelve
months ended December 31, 2007 and the twelve months ended December
31, 2006.
(6) Non-accrual loans include $38.3 million at December 31, 2007 and $17.3
million at December 31, 2006 of loans which have only missed two
payments.
(7) Book value per share represents stockholders' equity divided by
outstanding shares, excluding unallocated Employee Stock Ownership
Plan, or ESOP, shares.
(8) Tangible book value per share represents stockholders' equity less
goodwill divided by outstanding shares, excluding unallocated ESOP
shares.
(9) Tangible assets represent assets less goodwill.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Three Months Ended December 31,
2007
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $11,660,354 $159,134 5.46%
Multi-family, commercial
real estate and
construction 4,106,141 62,376 6.08
Consumer and other loans (1) 369,314 6,700 7.26
Total loans 16,135,809 228,210 5.66
Mortgage-backed and other
securities (2) 4,506,034 50,913 4.52
Repurchase agreements 22,229 259 4.66
Federal Home Loan Bank stock 199,389 3,388 6.80
Total interest-earning assets 20,863,461 282,770 5.42
Goodwill 185,151
Other non-interest-earning assets 744,171
Total assets $21,792,783
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $1,914,907 1,949 0.41
Money market 340,611 847 0.99
NOW and demand deposit 1,448,161 312 0.09
Liquid certificates of deposit 1,444,935 16,074 4.45
Total core deposits 5,148,614 19,182 1.49
Certificates of deposit 7,919,713 95,453 4.82
Total deposits 13,068,327 114,635 3.51
Borrowings 7,165,719 86,202 4.81
Total interest-bearing liabilities 20,234,046 200,837 3.97
Non-interest-bearing liabilities 356,703
Total liabilities 20,590,749
Stockholders' equity 1,202,034
Total liabilities and stockholders'
equity $21,792,783
Net interest income/net interest
rate spread $81,933 1.45%
Net interest-earning assets/net
interest margin $629,415 1.57%
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Three Months Ended December 31,
2006
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,173,855 $131,879 5.19%
Multi-family, commercial
real estate and construction 4,242,832 67,064 6.32
Consumer and other loans (1) 449,440 8,817 7.85
Total loans 14,866,127 207,760 5.59
Mortgage-backed and other
securities (2) 5,495,739 62,162 4.52
Repurchase agreements 90,752 1,205 5.31
Federal Home Loan Bank stock 147,227 2,252 6.12
Total interest-earning assets 20,599,845 273,379 5.31
Goodwill 185,151
Other non-interest-earning assets 782,146
Total assets $21,567,142
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,162,998 2,198 0.41
Money market 456,617 1,152 1.01
NOW and demand deposit 1,462,088 215 0.06
Liquid certificates of deposit 1,420,831 17,824 5.02
Total core deposits 5,502,534 21,389 1.55
Certificates of deposit 7,617,237 88,024 4.62
Total deposits 13,119,771 109,413 3.34
Borrowings 6,848,655 77,110 4.50
Total interest-bearing
liabilities 19,968,426 186,523 3.74
Non-interest-bearing liabilities 360,334
Total liabilities 20,328,760
Stockholders' equity 1,238,382
Total liabilities and stockholders'
equity $21,567,142
Net interest income/net interest
rate spread $86,856 1.57%
Net interest-earning assets/net
interest margin $631,419 1.69%
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 included at average amortized cost.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Twelve Months Ended December 31,
2007
Average
Average Yield/
Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,995,688 $587,863 5.35%
Multi-family, commercial
real estate and construction 4,171,915 254,536 6.10
Consumer and other loans (1) 397,476 30,178 7.59
Total loans 15,565,079 872,577 5.61
Mortgage-backed and other
securities (2) 4,850,753 219,040 4.52
Federal funds sold and
repurchase agreements 39,838 2,071 5.20
Federal Home Loan Bank stock 167,651 11,634 6.94
Total interest-earning assets 20,623,321 1,105,322 5.36
Goodwill 185,151
Other non-interest-earning assets 753,377
Total assets $21,561,849
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,014,253 8,126 0.40
Money market 379,634 3,780 1.00
NOW and demand deposit 1,465,463 951 0.06
Liquid certificates of deposit 1,549,774 73,352 4.73
Total core deposits 5,409,124 86,209 1.59
Certificates of deposit 7,823,767 369,830 4.73
Total deposits 13,232,891 456,039 3.45
Borrowings 6,776,394 315,755 4.66
Total interest-bearing
liabilities 20,009,285 771,794 3.86
Non-interest-bearing liabilities 351,080
Total liabilities 20,360,365
Stockholders' equity 1,201,484
Total liabilities and stockholders'
equity $21,561,849
Net interest income/net interest
rate spread $333,528 1.50%
Net interest-earning assets/net
interest margin $614,036 1.62%
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Twelve Months Ended December 31,
2006
Average
Average Yield/
Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,984,760 $510,105 5.11%
Multi-family, commercial
real estate and construction 4,204,883 259,242 6.17
Consumer and other loans (1) 478,447 35,735 7.47
Total loans 14,668,090 805,082 5.49
Mortgage-backed and other
securities (2) 5,946,591 267,535 4.50
Federal funds sold and
repurchase agreements 131,418 6,410 4.88
Federal Home Loan Bank stock 143,002 7,787 5.45
Total interest-earning assets 20,889,101 1,086,814 5.20
Goodwill 185,151
Other non-interest-earning assets 786,062
Total assets $21,860,314
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,325,346 9,362 0.40
Money market 536,549 5,287 0.99
NOW and demand deposit 1,500,131 877 0.06
Liquid certificates of deposit 1,092,533 50,460 4.62
Total core deposits 5,454,559 65,986 1.21
Certificates of deposit 7,539,840 318,784 4.23
Total deposits 12,994,399 384,770 2.96
Borrowings 7,242,568 311,659 4.30
Total interest-bearing liabilities 20,236,967 696,429 3.44
Non-interest-bearing liabilities 349,170
Total liabilities 20,586,137
Stockholders' equity 1,274,177
Total liabilities and stockholders'
equity $21,860,314
Net interest income/net interest
rate spread $390,385 1.76%
Net interest-earning assets/net
interest margin $652,134 1.87%
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 included at average amortized
cost.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
END OF PERIOD BALANCES AND RATES
(Dollars in Thousands)
At December 31, At September 30, At December 31,
2007 2007 2006
-------------------- ------------------- -----------------
Weighted Weighted Weighted
Average Average Average
Balance Rate Balance Rate Balance Rate
(1) (1) (1)
-------------------- ------------------- -----------------
Selected
interest-
earning assets:
Mortgage loans,
gross (2):
One-to-four
family $11,628,270 5.70% $11,349,658 5.65% $10,214,146 5.48%
Multi-
family,
commercial
real estate
and
construc-
tion 4,055,081 5.92 4,122,709 5.93 4,227,931 5.96
Mortgage-
backed
and other
securities
(3) 4,370,850 4.33 4,568,579 4.33 5,339,681 4.35
Interest-bearing
liabilities:
Savings 1,891,618 0.40 1,940,322 0.40 2,129,416 0.40
Money market 333,914 0.98 352,858 1.01 435,657 0.98
NOW and
demand
deposit 1,478,362 0.06 1,442,840 0.06 1,496,986 0.06
Liquid 1,447,341 4.40 1,463,845 4.46 1,447,462 4.88
certificates
of deposit
Total core
deposits 5,151,235 1.46 5,199,865 1.49 5,509,521 1.53
Certificates
of
deposit 7,898,203 4.79 8,066,130 4.80 7,714,503 4.62
Total
deposits 13,049,438 3.48 13,265,995 3.50 13,224,024 3.33
Borrowings,
net 7,184,658 4.66 6,929,500 4.68 6,836,002 4.45
(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.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP EARNINGS (1)
(In Thousands, Except Per Share Data)
For the Three Months Ended For the Twelve Months Ended
December 31, 2007 December 31, 2007
Adjust- Adjust-
GAAP ments(2) Non-GAAP(1) GAAP ments(2) Non-GAAP(1)
Net interest
income $81,933 $- $81,933 $333,528 $- $333,528
Provision
for loan
losses 2,000 - 2,000 2,500 - 2,500
Net interest
income after
provision
for loan
losses 79,933 - 79,933 331,028 - 331,028
Non-interest
income 2,108 20,484 22,592 75,790 20,484 96,274
Non-interest
expense 58,902 - 58,902 231,273 - 231,273
Income before
income tax
expense 23,139 20,484 43,623 175,545 20,484 196,029
Income tax
expense 3,466 7,169 10,635 50,723 7,169 57,892
Net income $19,673 $13,315 $32,988 $124,822 $13,315 $138,137
Basic earnings
per common
share $0.22 $0.15 $0.37 $1.38 $0.15 $1.53
Diluted earnings
per common
share $0.22 $0.15 $0.36(3) $1.36 $0.14 $1.50
For the Twelve Months Ended
December 31, 2006
Adjust- Non-GAAP
GAAP ments(4) (1)
Net interest income $390,385 $- $390,385
Provision for loan losses - - -
Net interest income after
provision for loan losses 390,385 - 390,385
Non-interest income 91,350 5,456 96,806
Non-interest expense 221,803 - 221,803
Income before income
tax expense 259,932 5,456 265,388
Income tax expense 85,035 1,785 86,820
Net income $174,897 $3,671 $178,568
Basic earnings
per common share $1.85 $0.04 $1.88(3)
Diluted earnings
per common share $1.80 $0.04 $1.84
(1) Non-GAAP earnings are also referred to as operating income and
operating EPS throughout this release.
(2) Adjustments relate to the other-than-temporary impairment write-down
of securities charge and the related tax effects recorded in the 2007
fourth quarter.
(3) Figures do not cross foot due to rounding.
(4) Adjustments relate to the charge for the termination of our interest
rate swap agreements and the related tax effects recorded in the 2006
first quarter.
SOURCE Astoria Financial Corporation
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Related links:
http://ir.astoriafederal.com/
http://www.prnewswire.com/comp/104529.html/
CONTACT:
Peter J. Cunningham, First Vice President,
Investor Relations, Astoria Financial Corporation,
+1-516-327-7877, ir@astoriafederal.com
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