Quarterly Cash Dividend Increased 8% to $0.26 Per Share
LAKE SUCCESS, N.Y., Jan. 25 /PRNewswire-FirstCall/ -- Astoria Financial
Corporation (NYSE: AF) ("Astoria" or "Company"), the holding company for
Astoria Federal Savings and Loan Association ("Astoria Federal"), today
reported net income of $37.1 million, or $0.39 diluted earnings per share
("EPS"), for the quarter ended December 31, 2006, compared to $57.7
million, or $0.57 EPS, for the 2005 fourth quarter. For the 2006 fourth
quarter, annualized returns on average equity, average tangible equity and
average assets were 11.99%, 14.09% and 0.69%, respectively, compared to
16.97%, 19.64% and 1.03%, respectively, for the comparable 2005 period.
For the year ended December 31, 2006, net income totaled $174.9
million, or $1.80 EPS, compared to $233.8 million, or $2.26 EPS, for the
comparable 2005 period. For the year ended December 31, 2006, returns on
average equity, average tangible equity and average assets were 13.73%,
16.06% and 0.80%, respectively, compared to 17.06%, 19.72% and 1.02%,
respectively, for the comparable 2005 period.
2006 Full Year Financial Highlights
* Deposits increased $414 million, or 3%, to $13.2 billion at December
31, 2006
* Loan portfolio increased $579 million, or 4%, to $15.0 billion at
December 31, 2006
-- One-to-four family loan portfolio increased $456 million, or 5%, to
$10.2 billion at December 31, 2006
-- Multifamily/Commercial Real Estate ("CRE") loan portfolio increased
$185 million, or 5%, to $4.1 billion, or 27% of total loans, at
December 31, 2006
* Securities portfolio decreased $1.2 billion, or 19%, to $5.3 billion at
December 31, 2006
* Borrowings decreased $1.1 billion, or 14%, to $6.8 billion at December
31, 2006
* Repurchased 8.4 million shares
Commenting on the 2006 fourth quarter and full year results, George L.
Engelke, Jr., Chairman, President and Chief Executive Officer of Astoria
noted, "The persistence of an inverted yield curve environment during the
fourth quarter and most of the year continued to exert pressure on our net
interest margin and earnings while limiting opportunities for profitable
balance sheet growth. Therefore, we continued to focus on improving the
balance sheet by growing loans and deposits, reducing securities and
repurchasing our stock."
Board Increases Quarterly Cash Dividend 8%
The Company also announced that the Board of Directors, at their
January 24, 2007 meeting, declared a quarterly cash dividend of $0.26 per
share, an increase of 8%. The cash dividend is payable on March 1, 2007 to
shareholders of record as of February 15, 2007. This is the forty-seventh
consecutive quarterly cash dividend declared by the Company. Commenting on
the Board's action, Mr. Engelke said, "The increase in the cash dividend is
evidence of the Board's continued confidence in the fundamental strength of
the Company and its commitment to enhancing shareholder value."
Eleventh Stock Repurchase Program Continues
During the 2006 fourth quarter, Astoria repurchased 1.9 million shares
of its common stock at an average cost of $29.55 per share. For the year
ended December 31, 2006, Astoria repurchased a total of 8.4 million shares,
completing its tenth stock repurchase program and commencing its eleventh
stock repurchase program in the 2006 first quarter. Under the current stock
repurchase program, 1.9 million shares of the 10 million shares authorized
remain available for repurchase.
Board Sets Annual Shareholders' Meeting Date
The Board of Directors, at their January 24, 2007 meeting, established
May 16, 2007 as the date for the Astoria Annual Meeting of Shareholders,
with a voting record date of March 26, 2007.
Fourth Quarter and Full Year Earnings Summary
Net interest income for the quarter ended December 31, 2006 totaled
$86.9 million compared to $90.7 million for the 2006 third quarter and
$113.7 million for the fourth quarter a year ago. For the year ended
December 31, 2006, net interest income totaled $390.4 million compared to
$478.8 million for the comparable 2005 period.
Astoria's net interest margin for the quarter ended December 31, 2006
declined to 1.69% from 1.75% for the previous quarter and 2.12% for the
quarter ended December 31, 2005, primarily due to the cost of
interest-bearing liabilities rising more rapidly than the yield on
interest-earning assets. For the 2006 fourth quarter, multifamily/CRE loan
prepayment penalty income increased to $4.0 million, from $2.1 million for
the previous quarter and $3.0 million for the 2005 fourth quarter,
primarily due to a $2.0 million prepayment penalty from a single CRE loan
in the 2006 fourth quarter. For the year ended December 31, 2006, the net
interest margin declined to 1.87% from 2.19% for the 2005 full year period.
Non-interest income for the quarter ended December 31, 2006 totaled
$23.9 million compared to $26.6 million for the 2005 fourth quarter. The
decrease is primarily due to a decrease of $1.6 million in customer service
fees, primarily NSF fees, and the absence of $1.3 million of non-recurring
other income recorded in the 2005 fourth quarter.
For the twelve months ended December 31, 2006, non-interest income
declined to $91.4 million from $102.2 million for the comparable 2005
period. The decline was due primarily to the following: a $5.5 million
charge associated with the termination of interest rate swap agreements in
the 2006 first quarter, a $1.4 million decrease in customer service fees, a
$1.2 million decrease in mortgage banking income, net, a $0.9 million
decrease in other loan fees primarily due to the outsourcing of mortgage
servicing and $1.7 million of non-recurring income recorded in 2005. The
components of mortgage banking income, net, which is included in
non-interest income, are detailed below:
(Dollars in millions) 4Q06 4Q05 2006 2005
Loan servicing fees $ 1.0 $ 1.2 $ 4.4 $5.0
Amortization of MSR* (0.9) (1.2) (3.7) (5.2)
MSR valuation adjustments 0.5 0.1 2.0 2.7
Net gain on sale of loans 0.4 0.8 2.1 3.5
Mortgage banking income, net $ 1.0 $ 0.9 $ 4.8 $6.0
* Mortgage servicing rights
General and administrative expense ("G&A") for the quarter ended
December 31, 2006 totaled $57.0 million compared to $52.7 million for the
comparable 2005 period. The increase was primarily due to a $2.4 million
increase in compensation and benefits expense, a $0.9 million increase in
occupancy, equipment and systems expense, due, in part, to the outsourcing
of mortgage servicing in 2005, and an $0.8 million increase in advertising
expense. The increase in compensation and benefits expense is due to the
adoption of SFAS 123R, effective January 1, 2006, the granting of
restricted stock and an increase in ESOP expense.
For the year ended December 31, 2006, G&A declined $6.9 million to
$221.8 million from $228.7 million for the comparable 2005 period. This is
due, in part, to a net decrease of $3.0 million in compensation and
benefits expense resulting primarily from the outsourcing of mortgage
servicing and other company-wide cost saving initiatives undertaken in
2005, partially offset by an increase in stock based compensation of $4.5
million due to the adoption of SFAS 123R and the granting of restricted
stock. In addition, there was a decrease of $5.1 million in other expense,
primarily lower goodwill litigation expense, and a decrease of $1.1 million
in advertising expense, partially offset by a $2.3 million increase in
occupancy, equipment and systems expense primarily related to the
outsourcing of mortgage servicing in 2005.
Balance Sheet Summary
For the quarter and year ended December 31, 2006, total loans increased
$225.8 million and $579.4 million, respectively, to $15.0 billion at
December 31, 2006. Total loan production for the fourth quarter and twelve
months ended December 31, 2006 was $1.1 billion and $3.4 billion,
respectively, compared to $1.0 billion and $4.3 billion, respectively, for
the comparable 2005 periods. The loan pipeline at December 31, 2006 totaled
$1.0 billion, a decline of $107 million from the 2006 third quarter.
During the 2006 fourth quarter, the 1-4 family mortgage loan portfolio
increased $283.0 million, or 11% annualized, from the previous quarter and
totaled $10.2 billion at December 31, 2006. 1-4 family loan originations
and purchases for the 2006 fourth quarter totaled $948.7 million compared
to $837.6 million for the 2005 fourth quarter. Of the 2006 fourth quarter
production, 73% consisted of 3/1 and 5/1 adjustable rate mortgage loans.
For the year ended December 31, 2006, the 1-4 family mortgage loan
portfolio increased $456.2 million, or 5%, fueled by loan originations and
purchases totaling $2.7 billion compared to $3.3 billion for 2005. Of the
2006 full year 1-4 family loan production, 74% consisted of 3/1 and 5/1
adjustable rate mortgage loans.
During the 2006 fourth quarter, the multifamily and CRE loan portfolio
decreased slightly and totaled $4.1 billion, or 27% of total loans, at
December 31, 2006. Multifamily and CRE loan originations totaled $105.0
million for the 2006 fourth quarter compared to $183.9 million for the
comparable 2005 period. The average loan-to-value ratio of the multifamily
and CRE loan portfolio continues to be less than 65%, based on current
principal balance and original appraised value, and the average loan
balance is less than $1 million.
For the year ended December 31, 2006, the multifamily and CRE loan
portfolio increased $185.0 million, or 5%. Multifamily and CRE loan
originations totaled $664.4 million for the 2006 full year compared to
$952.9 million for 2005.
At December 31, 2006, non-performing loans totaled $59.4 million, or
0.28% of total assets, compared to $55.1 million, or 0.25% of total assets,
at September 30, 2006 and $65.0 million, or 0.29% of total assets, at
December 31, 2005. Net recoveries for the quarter ended December 31, 2006
totaled $12,000 compared to net charge-offs of $888,000 for the 2005 fourth
quarter. For the year ended December 31, 2006, net charge-offs totaled $1.2
million compared to $1.6 million for the comparable 2005 period. The ratio
of the allowance for loan losses to non-performing loans at December 31,
2006 was 135%.
For the quarter and year ended December 31, 2006, deposits increased
$47.0 million and $413.6 million, respectively, to $13.2 billion at
December 31, 2006.
The continued inverted yield curve in the 2006 fourth quarter further
reduced spread availability. We, therefore, continued to reduce non-core
business activities. Total securities for the quarter ended December 31,
2006 declined $258.8 million, or 18% annualized, to $5.3 billion at
December 31, 2006, representing 25% of total assets.
For the twelve months ended December 31, 2006, total securities
declined $1.2 billion, or 19%, and borrowings declined $1.1 billion, or
14%. Total assets declined $825.8 million from December 31, 2005 and
totaled $21.6 billion at December 31, 2006.
Key balance sheet highlights, reflecting the improvement in the quality
of the Company's balance sheet since December 31, 1999, follow:
(Dollars in % Change
millions) 12/31/99 12/31/01 12/31/03 12/31/05 12/31/06 12/31/99-12/31/06
Assets $22,700 $22,672 $22,462 $22,380 $21,555 - 5%
Loans $10,286 $12,167 $12,687 $14,392 $14,972 +46%
Securities $10,763 $ 8,013 $ 8,448 $ 6,572 $ 5,340 -50%
Deposits $ 9,555 $10,904 $11,187 $12,810 $13,224 +38%
Borrowings $11,528 $ 9,826 $ 9,632 $ 7,938 $ 6,836 -41%
The following table illustrates this improvement on an outstanding per
share basis:
Amount per
share 12/31/99 12/31/01 12/31/03 12/31/05 12/31/06 % Change CAGR
Loans $ 66.28 $ 89.36 $107.51 $137.11 $152.44 130% 13%
Deposits $ 61.57 $ 80.09 $ 94.80 $122.04 $134.65 119% 12%
Stockholders' equity was $1.2 billion, or 5.64% of total assets at
December 31, 2006. Astoria Federal continues to maintain capital ratios in
excess of regulatory requirements with core, tangible and risk-based
capital ratios of 6.62%, 6.62% and 12.27%, respectively, at December 31,
2006.
Future Outlook
Commenting on the outlook for 2007, Mr. Engelke stated, "The interest
rate environment continues to remain very challenging, characterized by a
prolonged inversion of the yield curve. During 2007, we continue to expect
a gradual flattening of the yield curve and a relatively stable net
interest margin, similar to the 2006 fourth quarter margin. We will,
therefore, continue our strategy of reducing the securities portfolio while
we emphasize deposit and loan growth, all of which will continue to improve
the quality of both the balance sheet and earnings. While we will continue
to focus on the repurchase of our stock as a very desirable use of capital,
the pace of the buyback activity is expected to be slower than in 2006 as
we maintain tangible capital levels at or near 4.75%. This strategy should
better position us to take advantage of more profitable asset growth
opportunities when the yield curve steepens."
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $21.6 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 $13.2 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 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-six states, primarily the East
Coast, and the District of Columbia, and through correspondent
relationships covering forty-three states and the District of Columbia.
Earnings Conference Call January 25, 2007 at 9:30 a.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke will
host an earnings conference call Thursday morning January 25, 2007 at 9:30
a.m. (ET). The toll-free dial-in number is (800) 967-7140.
A telephone replay will be available on January 25, 2007 from 12 noon
(ET) through Friday, February 2, 2007, 11:59 pm (ET). The replay number is
(888) 203-1112, passcode: 2245521. 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 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.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share Data)
At At
December 31, December 31,
2006 2005
ASSETS
Cash and due from banks $134,016 $169,234
Repurchase agreements 71,694 182,803
Securities available-for-sale 1,560,325 1,841,351
Securities held-to-maturity (fair value of
$3,681,514 and $4,627,013, respectively) 3,779,356 4,730,953
Federal Home Loan Bank of New York stock,
at cost 153,640 145,247
Loans held-for-sale, net 16,542 23,651
Loans receivable:
Mortgage loans, net 14,532,503 13,879,804
Consumer and other loans, net 439,188 512,489
14,971,691 14,392,293
Allowance for loan losses (79,942) (81,159)
Total loans receivable, net 14,891,749 14,311,134
Mortgage servicing rights, net 15,944 16,502
Accrued interest receivable 78,761 80,318
Premises and equipment, net 145,231 151,494
Goodwill 185,151 185,151
Bank owned life insurance 385,952 382,613
Other assets 136,158 159,820
TOTAL ASSETS $21,554,519 $22,380,271
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $13,224,024 $12,810,455
Reverse repurchase agreements 4,480,000 5,780,000
Federal Home Loan Bank of New York advances 1,940,000 1,724,000
Other borrowings, net 416,002 433,526
Mortgage escrow funds 132,080 124,929
Accrued expenses and other liabilities 146,659 157,134
TOTAL LIABILITIES 20,338,765 21,030,044
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 98,211,827 and 104,967,280
shares outstanding, respectively) 1,665 1,665
Additional paid-in capital 828,940 824,102
Retained earnings 1,856,528 1,774,924
Treasury stock (68,283,061 and 61,527,608
shares, at cost, respectively) (1,390,495) (1,171,604)
Accumulated other comprehensive loss (58,330) (49,536)
Unallocated common stock held by ESOP
(6,155,918 and 6,465,273 shares,
respectively) (22,554) (23,688)
Deferred compensation - (5,636)
TOTAL STOCKHOLDERS' EQUITY 1,215,754 1,350,227
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $21,554,519 $22,380,271
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share Data)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
2006 2005 2006 2005
Interest income:
Mortgage loans:
One-to-four family $131,879 $120,331 $510,105 $459,929
Multi-family, commercial
real estate and
construction 67,064 61,672 259,242 239,119
Consumer and other loans 8,817 8,705 35,735 31,160
Mortgage-backed and other
securities 62,162 76,106 267,535 340,626
Repurchase agreements 1,205 2,257 6,410 6,123
Federal Home Loan Bank of
New York stock 2,252 1,630 7,787 6,030
Total interest income 273,379 270,701 1,086,814 1,082,987
Interest expense:
Deposits 109,413 77,471 384,770 281,399
Borrowings 77,110 79,546 311,659 322,808
Total interest expense 186,523 157,017 696,429 604,207
Net interest income 86,856 113,684 390,385 478,780
Provision for loan losses - - - -
Net interest income after
provision for loan losses 86,856 113,684 390,385 478,780
Non-interest income:
Customer service fees 15,615 17,207 64,823 66,256
Other loan fees 1,303 1,337 4,058 4,980
Mortgage banking income, net 1,035 948 4,845 6,015
Income from bank owned life
insurance 4,066 4,011 16,129 16,446
Other 1,843 3,056 1,495 8,502
Total non-interest income 23,862 26,559 91,350 102,199
Non-interest expense:
General and administrative:
Compensation and benefits 29,985 27,600 116,408 119,417
Occupancy, equipment and
systems 16,825 15,905 66,034 63,695
Federal deposit insurance
premiums 409 433 1,672 1,760
Advertising 2,079 1,275 7,747 8,815
Other 7,662 7,531 29,942 35,047
Total non-interest expense 56,960 52,744 221,803 228,734
Income before income tax
expense 53,758 87,499 259,932 352,245
Income tax expense 16,652 29,750 85,035 118,442
Net income $37,106 $57,749 $174,897 $233,803
Basic earnings per common
share $0.40 $0.58 $1.85 $2.30
Diluted earnings per common
share $0.39 $0.57 $1.80 $2.26
Basic weighted average
common shares 92,354,297 99,478,069 94,754,732 101,476,376
Diluted weighted average
common and common
equivalent shares 94,735,740 101,449,368 97,280,150 103,408,637
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,
2006 2005 2006 2005
(Annualized)
Selected Returns and Financial
Ratios
Return on average stockholders'
equity 11.99 % 16.97 % 13.73 % 17.06 %
Return on average tangible
stockholders' equity (1) 14.09 19.64 16.06 19.72
Return on average assets 0.69 1.03 0.80 1.02
General and administrative
expense to average assets 1.06 0.94 1.01 1.00
Efficiency ratio (2) 51.45 37.61 46.04 39.37
Net interest rate spread (3) 1.57 2.03 1.76 2.11
Net interest margin (4) 1.69 2.12 1.87 2.19
Selected Non-GAAP Returns and
Financial Ratios (5)
Non-GAAP return on average
stockholders' equity 14.01 % 17.06 %
Non-GAAP return on average
tangible stockholders'
equity (1) 16.40 19.72
Non-GAAP return on average
assets 0.82 1.02
Non-GAAP efficiency ratio (2) 45.53 39.37
Asset Quality Data (dollars in
thousands)
Non-performing loans/total loans 0.40 % 0.45 %
Non-performing loans/total
assets 0.28 0.29
Non-performing assets/total
assets 0.28 0.30
Allowance for loan losses/
non-performing loans 134.55 124.81
Allowance for loan losses/
non-accrual loans 135.66 125.15
Allowance for loan losses/
total loans 0.53 0.56
Net charge-offs to average
loans outstanding 0.00 % 0.02 % 0.01 0.01
Non-performing assets $60,043 $66,093
Non-performing loans 59,416 65,027
Loans 90 days past maturity
but still accruing interest 488 176
Non-accrual loans 58,928 64,851
Net (recoveries) charge-offs $(12) $888 1,217 1,599
Capital Ratios (Astoria Federal)
Tangible 6.62 % 6.53 %
Core 6.62 6.53
Risk-based 12.27 12.53
Other Data
Cash dividends paid per
common share $0.24 $0.20 $0.96 $0.80
Dividend payout ratio 61.54 % 35.09 % 53.33 % 35.40 %
Book value per share (6) $13.21 $13.71
Tangible book value per
share (7) 11.20 11.83
Average equity/average assets 5.74 % 6.06 % 5.83 % 5.99 %
Mortgage loans serviced for
others (in thousands) $1,363,591 $1,502,852
Full time equivalent employees 1,626 1,658
(1) Average tangible stockholders' equity represents average
stockholders' equity less average goodwill.
(2) The 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 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
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 12 for a
reconciliation of GAAP net income to non-GAAP earnings for the twelve
months ended December 31, 2006.
(6) Book value per share represents stockholders' equity divided by
outstanding shares, excluding unallocated Employee Stock Ownership
Plan, or ESOP, shares.
(7) Tangible book value per share represents stockholders' equity less
goodwill divided by outstanding shares, excluding unallocated ESOP
shares.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Three Months Ended December 31,
2006 2005
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annual- (Annual-
ized) ized)
Assets:
Interest-earning
assets:
Mortgage loans
(1):
One-to-four
family $10,173,855 $131,879 5.19% $9,754,809 $120,331 4.93%
Multi-family,
commercial
real estate
and
construction 4,242,832 67,064 6.32 4,005,714 61,672 6.16
Consumer and
other loans (1) 449,440 8,817 7.85 522,429 8,705 6.67
Total loans 14,866,127 207,760 5.59 14,282,952 190,708 5.34
Mortgage-backed
and other
securities (2) 5,495,739 62,162 4.52 6,807,465 76,106 4.47
Repurchase
agreements 90,752 1,205 5.31 229,174 2,257 3.94
Federal Home Loan
Bank stock 147,227 2,252 6.12 131,178 1,630 4.97
Total interest-
earning assets 20,599,845 273,379 5.31 21,450,769 270,701 5.05
Goodwill 185,151 185,151
Other non-
interest-earning
assets 782,146 825,378
Total assets $21,567,142 $22,461,298
Liabilities and
stockholders'
equity:
Interest-bearing
liabilities:
Savings $2,162,998 2,198 0.41 $2,564,728 2,598 0.41
Money market 456,617 1,152 1.01 690,978 1,688 0.98
NOW and demand
deposit 1,462,088 215 0.06 1,554,803 230 0.06
Liquid
certificates of
deposit 1,420,831 17,824 5.02 537,574 4,710 3.50
Total core
deposits 5,502,534 21,389 1.55 5,348,083 9,226 0.69
Certificates of
deposit 7,617,237 88,024 4.62 7,419,474 68,245 3.68
Total deposits 13,119,771 109,413 3.34 12,767,557 77,471 2.43
Borrowings 6,848,655 77,110 4.50 8,000,733 79,546 3.98
Total interest-
bearing
liabilities 19,968,426 186,523 3.74 20,768,290 157,017 3.02
Non-interest-
bearing
liabilities 360,334 331,989
Total liabilities 20,328,760 21,100,279
Stockholders' equity 1,238,382 1,361,019
Total liabilities
and stockholders'
equity $21,567,142 $22,461,298
Net interest income/
net interest rate
spread $86,856 1.57% $113,684 2.03%
Net interest-earning
assets/net interest
margin $631,419 1.69% $682,479 2.12%
Ratio of interest-
earning assets to
interest-bearing
liabilities 1.03x 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,
2006 2005
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning
assets:
Mortgage loans
(1):
One-to-four
family $9,984,760 $510,105 5.11% $9,461,023 $459,929 4.86%
Multi-family,
commercial
real estate
and
construction 4,204,883 259,242 6.17 3,862,281 239,119 6.19
Consumer and
other loans (1) 478,447 35,735 7.47 526,071 31,160 5.92
Total loans 14,668,090 805,082 5.49 13,849,375 730,208 5.27
Mortgage-backed
and other
securities (2) 5,946,591 267,535 4.50 7,671,532 340,626 4.44
Repurchase
agreements 131,418 6,410 4.88 195,863 6,123 3.13
Federal Home Loan
Bank stock
143,002 7,787 5.45 130,759 6,030 4.61
Total interest-
earning assets 20,889,101 1,086,814 5.20 21,847,529 1,082,987 4.96
Goodwill 185,151 185,151
Other non-
interest-earning
assets 786,062 852,475
Total assets $21,860,314 $22,885,155
Liabilities and
stockholders'
equity:
Interest-bearing
liabilities:
Savings $2,325,346 9,362 0.40 $2,742,417 11,015 0.40
Money market 536,549 5,287 0.99 804,855 7,513 0.93
NOW and demand
deposit 1,500,131 877 0.06 1,569,419 928 0.06
Liquid
certificates of
deposit 1,092,533 50,460 4.62 350,923 10,708 3.05
Total core
deposits 5,454,559 65,986 1.21 5,467,614 30,164 0.55
Certificates of
deposit 7,539,840 318,784 4.23 7,146,664 251,235 3.52
Total deposits 12,994,399 384,770 2.96 12,614,278 281,399 2.23
Borrowings 7,242,568 311,659 4.30 8,566,812 322,808 3.77
Total interest-
bearing
liabilities 20,236,967 696,429 3.44 21,181,090 604,207 2.85
Non-interest-
bearing
liabilities 349,170 333,522
Total liabilities 20,586,137 21,514,612
Stockholders'
equity 1,274,177 1,370,543
Total liabilities
and stockholders'
equity $21,860,314 $22,885,155
Net interest income/
net interest rate
spread $390,385 1.76% $478,780 2.11%
Net interest-earning
assets/net interest
margin $652,134 1.87% $666,439 2.19%
Ratio of interest-
earning assets to
interest-bearing
liabilities 1.03x 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,
2006 2006 2005
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 $10,214,146 5.48% $9,931,184 5.40% $9,757,920 5.19%
Multi-family,
commercial
real estate
and
construction 4,227,931 5.96 4,268,679 5.96 4,039,733 5.88
Mortgage-backed
and other
securities (3) 5,339,681 4.35 5,598,523 4.34 6,572,304 4.35
Interest-bearing
liabilities:
Savings 2,129,416 0.40 2,209,535 0.40 2,510,897 0.40
Money market 435,657 0.98 478,932 1.00 648,730 0.95
NOW and demand
deposit 1,496,986 0.06 1,466,725 0.06 1,569,859 0.06
Liquid certificates
of deposit 1,447,462 4.88 1,402,562 5.05 619,784 3.66
Total core deposits 5,509,521 1.53 5,557,754 1.54 5,349,270 0.74
Certificates of
deposit 7,714,503 4.62 7,619,252 4.54 7,461,185 3.73
Total deposits 13,224,024 3.33 13,177,006 3.27 12,810,455 2.48
Borrowings, net 6,836,002 4.45 6,824,359 4.38 7,937,526 3.97
(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.
RECONCILIATION OF 2006 GAAP NET INCOME TO NON-GAAP EARNINGS
(In Thousands, Except Per Share Data)
For the Twelve Months Ended
December 31, 2006
GAAP Adjustments (4) Non-GAAP
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 (5)
Diluted earnings per common share $1.80 $0.04 $1.84
(4) Adjustments relate to the $5.5 million charge for the termination of
our interest rate swap agreements and the related tax effects.
(5) Figures do not cross foot due to rounding.
SOURCE Astoria Financial Corporation
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Related links:
http://www.astoriafederal.com
http://ir.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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