Quarterly Cash Dividend Increased 20% to $0.24 Per Share
LAKE SUCCESS, N.Y., Jan. 26 /PRNewswire-FirstCall/ -- Astoria Financial
Corporation (NYSE: AF) ("Astoria"), the holding company for Astoria Federal
Savings and Loan Association ("Astoria Federal"), today reported net income of
$57.7 million, or $0.57 diluted earnings per share ("EPS"), for the quarter
ended December 31, 2005, compared to $50.5 million ($60.1 million operating
earnings), or $0.48 EPS ($0.57 operating EPS), for the 2004 fourth quarter.
For the 2005 fourth quarter, annualized returns on average equity, average
tangible equity and average assets were 16.97%, 19.64% and 1.03%,
respectively, compared to 14.75% (17.54% on an operating basis), 17.05%
(20.28% on an operating basis) and 0.87% (1.04% on an operating basis),
respectively, for the comparable 2004 period.
For the year ended December 31, 2005, net income totaled $233.8 million,
or $2.26 EPS, compared to $219.5 million ($229.1 million operating earnings),
or $2.00 EPS ($2.09 operating EPS) for the comparable 2004 period. For the
year ended December 31, 2005, returns on average equity, average tangible
equity and average assets totaled 17.06%, 19.72%, and 1.02%, respectively,
compared to 15.81% (16.50% on an operating basis), 18.25% (19.04% on an
operating basis) and 0.97% (1.01% on an operating basis), respectively, for
the comparable 2004 period.
Operating earnings, operating EPS and operating returns for the 2004
fourth quarter and full year reflect net income and EPS determined in
accordance with generally accepted accounting principles ("GAAP") adjusted to
exclude the effect of a fourth quarter other-than-temporary impairment after-
tax non-cash charge of $9.6 million, or $0.09 EPS. For a reconciliation of
2004 operating earnings and operating EPS to 2004 GAAP net income and EPS,
please refer to the table on page 13.
2005 Fourth Quarter Financial Highlights:
-- Loan portfolio increased $285 million, or 8% annualized
- Multifamily/Commercial Real Estate ("CRE") loan portfolio
increased $45 million, or 5% annualized
- One-to-Four Family loan portfolio increased $248 million, or 10%
annualized
-- Securities portfolio decreased $516 million, or 29% annualized
-- Borrowings decreased $162 million, or 8% annualized
-- Assets decreased $250 million, or 4% annualized
-- Repurchased 2.5 million shares
2005 Full Year Financial Highlights:
-- Loan portfolio increased $1.1 billion, or 9%, to $14.4 billion at
December 31, 2005
- Multifamily/CRE loan portfolio increased $399 million, or 11%,
to $3.9 billion at December 31, 2005 and represents 27% of total
loans
- One-to-Four Family loan portfolio increased $703 million, or 8%,
to $9.8 billion at December 31, 2005
-- Securities portfolio decreased $2.1 billion, or 25%, to $6.6 billion
at December 31, 2005
-- Deposits increased $487 million, or 4%, to $12.8 billion at
December 31, 2005
-- Borrowings decreased $1.5 billion, or 16%, to $7.9 billion at
December 31, 2005
-- Assets decreased $1.0 billion, or 4%, to $22.4 billion at
December 31, 2005
-- Repurchased 6.6 million shares
Commenting on the fourth quarter and full year results, George L. Engelke,
Jr., Chairman, President and Chief Executive Officer of Astoria, noted, "While
the interest rate environment became increasingly challenging during the
fourth quarter with the confluence of rising short-term interest rates and
declining long-term interest rates producing an inverted yield curve, Astoria
continued to produce strong earnings and returns."
Board Increases Quarterly Cash Dividend 20%
The Company also announced that the Board of Directors, at their January
25, 2006 meeting, declared a quarterly cash dividend of $0.24 per share, an
increase of 20%. The cash dividend is payable on March 1, 2006 to
shareholders of record as of February 15, 2006. This is the forty-third
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."
Tenth Stock Repurchase Program Completed; Eleventh Program Commenced
During the 2005 fourth quarter, Astoria repurchased 2.5 million shares of
its common stock at an average cost of $28.37 per share. For the twelve
months ended December 31, 2005, 6.6 million shares were repurchased at an
average cost of $27.49 per share. Subsequent to December 31, 2005, the
Company completed its tenth stock repurchase program, purchasing the remaining
262,300 shares available under that plan. The eleventh repurchase program,
approved by the Board of Directors on December 21, 2005, authorizing the
repurchase of up to ten million shares, commenced in the 2006 first quarter
immediately following the completion of the tenth repurchase program.
Board Sets Annual Shareholders' Meeting Date
The Board of Directors, at their January 25, 2006 meeting, established May
17, 2006 as the date for the Annual Meeting of Shareholders, with a voting
record date of March 24, 2006.
Fourth Quarter and Full Year Earnings Summary
Net interest income for the quarter ended December 31, 2005 totaled
$113.7 million compared to $120.9 million for the same period a year ago. For
the twelve months ended December 31, 2005, net interest income increased to
$478.8 million from $470.6 in the comparable 2004 period.
Astoria's net interest margin for the quarter ended December 31, 2005
declined six basis points from the same period a year ago to 2.12%. On a
linked quarter basis, the net interest margin decreased eight basis points.
The Company's core interest rate spread (the difference between the yield on
loans and the cost of deposits) for the 2005 fourth quarter declined eleven
basis points on a linked quarter basis to 2.91% and eighteen basis points from
the 2004 fourth quarter. For the twelve months ended December 31, 2005, the
net interest margin increased two basis points to 2.19% from 2.17% for the
2004 full year period. Commenting on the net interest margin, Mr. Engelke
noted, "Clearly, continuing to reduce the lower yielding securities portfolio
and borrowings while growing loans and deposits has helped mitigate margin
compression in the current yield curve environment. If the current flat to
inverted yield curve persists throughout 2006, we expect that the net interest
margin will be somewhat lower but should not decline below an average of 2.00%
for the full year."
Non-interest income for the quarter ended December 31, 2005 totaled
$26.6 million compared to $22.6 million for the 2004 fourth quarter, excluding
the $16.5 million other-than-temporary impairment charge. The increase is
primarily due to an increase of $2.3 million in customer service fees and
$1.3 million of non-recurring other income.
For the twelve months ended December 31, 2005, non-interest income
increased to $102.2 million from $96.6 million for the comparable 2004 period,
excluding the $16.5 million impairment charge noted above. The increase was
primarily due to a $7.7 million, or 13%, increase in customer service fees and
a $1.3 million increase in mortgage banking income, net, partially offset by
the absence of gains on sales of securities which totaled $4.7 million in
2004.
The components of mortgage banking income, net, included in non-interest
income, are detailed below:
(Dollars in millions) 4Q05 4Q04 2005 2004
Loan servicing fees $ 1.2 $ 1.4 $ 5.0 $5.8
Amortization of MSR* (1.2) (1.6) (5.2) (6.8)
MSR valuation adjustments 0.1 0.3 2.7 2.2
Net gain on sale of loans 0.8 0.7 3.5 3.5
Mortgage banking income, net $ 0.9 $ 0.8 $6.0 $ 4.7
* Mortgage servicing rights
General and administrative expense ("G&A") for the quarter ended December
31, 2005 declined to $52.7 million from $57.9 million for the 2005 third
quarter and $53.4 million for the 2004 fourth quarter. The linked quarter
decrease of $5.2 million is primarily due to the $1.9 million of expenses
recorded in the 2005 third quarter related to the outsourcing of our mortgage
servicing and other company-wide cost saving initiatives, a $1.2 million
reduction in ESOP expense in the 2005 fourth quarter related to the annual
adjustment of estimated expense to actual, and lower advertising expense in
the 2005 fourth quarter.
For the twelve months ended December 31, 2005, G&A totaled $228.7 million
compared to $225.0 million for the comparable 2004 period. The Company
expects the G&A expense level for 2006 to be at or slightly lower than total
G&A expenses for 2005 due to the benefit derived from outsourcing mortgage
servicing and other company-wide cost-saving initiatives undertaken in the
2005 third quarter, offset by normal annual salary and other expense
increases.
Balance Sheet Summary
Due to the further flattening and inversion of the yield curve during the
fourth quarter, spread availability continued to narrow. Accordingly, we
continued to reduce our balance sheet through the reduction of non-core
business activities. Total securities for the quarter ended December 31, 2005
decreased $516.2 million, or 29% annualized, to $6.6 billion at December 31,
2005, or 29% of total assets, of which $1.8 billion, or 8% of total assets,
are categorized as available-for-sale. Borrowings decreased $162.0 million in
the fourth quarter of 2005, or 8% annualized, to $7.9 billion at December 31,
2005, representing 35% of total assets.
For the twelve months ended December 31, 2005, total securities decreased
$2.1 billion, or 25%, and borrowings decreased $1.5 billion, or 16%. Total
assets decreased $250.4 million from September 30, 2005 and $1.0 billion from
December 31, 2004 and total $22.4 billion at December 31, 2005.
Key balance sheet highlights, reflecting the improvement in the quality of
the Company's balance sheet since December 31, 1999, follow:
(Dollars in millions)
12/31/99 12/31/00 12/31/01 12/31/02
Assets $22,700 $22,341 $22,672 $21,702
Loans $10,286 $11,422 $12,167 $12,059
Securities $10,763 $9,415 $8,013 $7,834
Deposits $9,555 $10,072 $10,904 $11,067
Borrowings $11,528 $10,324 $9,826 $8,825
Change
(Dollars in millions) 12/31/03 12/31/04 12/31/05 12/31/99-12/31/05
Assets $22,462 $23,416 $22,380 - 1%
Loans $12,687 $13,263 $14,392 + 40%
Securities $8,448 $8,710 $6,572 - 39%
Deposits $11,187 $12,323 $12,810 + 34%
Borrowings $9,632 $9,470 $7,938 - 31%
During the 2005 fourth quarter, the 1-4 family mortgage loan portfolio
increased $248.4 million, or 10% annualized, to $9.8 billion at December 31,
2005. Originations and purchases totaled $837.6 million for the 2005 fourth
quarter compared to $1.0 billion in the year-ago fourth quarter of which 70%
and 73%, respectively, consisted of 3/1 and 5/1 hybrid adjustable rate
mortgage loans.
For the year ended December 31, 2005, the 1-4 family mortgage loan
portfolio increased $703.2 million, or 8%. One-to-four family loan
originations and purchases for 2005 increased to $3.3 billion from
$3.2 billion for the comparable 2004 period of which 76% and 73%,
respectively, consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans.
During the 2005 fourth quarter, the multifamily and CRE loan portfolio
increased $45.1 million, or 5% annualized, to $3.9 billion at December 31,
2005, or 27% of total loans outstanding. Multifamily and CRE loan
originations totaled $183.9 million for the 2005 fourth quarter compared to
$190.5 million for the comparable 2004 period. For the year ended December
31, 2005, the multifamily and CRE loan portfolio increased $398.9 million, or
11%. Multifamily and CRE loan originations for 2005 totaled $952.9 million
compared to $1.1 billion for 2004. The average loan-to-value ratio of the
combined 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.
At December 31, 2005, non-performing loans increased to $65.0 million, or
0.29% of total assets, from $37.9 million, or 0.17% of total assets, at
September 30, 2005. We discontinue accruing interest on mortgage loans when
such loans become 90 days delinquent as to the interest due, even though in
some instances the borrower has only missed two payments. As of December 31,
2005 and September 30, 2005, $28.1 million and $11.2 million, respectively, of
loans classified as non-performing had missed just two payments. As of
December 31, 2005, 1-4 family non-performing loans totaled $35.7 million and
had an average LTV of 65% and multifamily/CRE non-performing loans totaled
$28.8 million and had an average LTV of 68% with an average debt coverage
ratio of 1.76.
On November 30, 2005, the Company completed the outsourcing of its
mortgage servicing operations and systems. Typically, with conversions of
this magnitude, some disruptions in payment processing and loan collection
efforts occur which usually take up to 90 days after outsourcing to return to
normal.
Net charge-offs for the quarter and year ended December 31, 2005 totaled
$888,000 and $1.6 million, respectively, or an annualized rate of two basis
points and one basis point, respectively, of average total loans outstanding.
The ratio of the allowance for loan losses to non-performing loans at December
31, 2005 was 125%.
Deposits increased $4.8 million from September 30, 2005 and total
$12.8 billion at December 31, 2005. For the year ended December 31, 2005,
deposits increased $487.2 million, or 4%. These increases are primarily due
to increases in medium-term and Liquid CD accounts. During 2005, we have
grown our medium-term CD accounts at interest rates significantly below
alternative funding sources which, in addition to contributing to the
management of interest rate risk, permits us to reduce our borrowing levels
and continues to produce new customers from our communities, creating
relationship development opportunities. For the year ended December 31, 2005,
$4.1 billion of non-Liquid CD accounts were issued or repriced at an average
rate of 3.45% and an average maturity of 13 months. Since the introduction of
our Liquid CD account in the 2005 first quarter, balances have grown to $619.8
million at December 31, 2005. Core deposits, including Liquid CD accounts, at
December 31, 2005 total $5.3 billion, with an average rate of 0.74%.
Stockholders' equity was $1.4 billion, or 6.03% of total assets at
December 31, 2005. Astoria Federal continues to maintain capital ratios in
excess of regulatory requirements with core, tangible and risk-based capital
ratios of 6.53%, 6.53% and 12.53%, respectively, at December 31, 2005.
Future Outlook
Commenting on the outlook for 2006, Mr. Engelke stated, "We expect the
operating environment to remain challenging throughout 2006 as rising short-
term interest rates and relatively stable long-term interest rates exert
further pressure on the net interest margin. As a result, we expect to
continue our strategy of shrinking the balance sheet through a reduction in
the securities portfolio and borrowings of approximately $1.5 billion each
through normal cash flow, while we emphasize deposit and loan growth, all of
which will continue to improve both the quality of the balance sheet and
earnings. Overall, these activities should result in a further reduction in
the balance sheet of approximately $1 billion, similar to the 2005 reduction,
and a continued modest compression of the net interest margin throughout 2006.
As we continue to reduce the size of the balance sheet during this challenging
interest rate environment, we will continue to focus on the repurchase of our
stock as a very desirable use of capital."
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.4 billion is the sixth
largest thrift institution in the United States. Established in 1888, Astoria
Federal is the largest thrift depository headquartered in New York with
deposits of $12.8 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 in twenty-three states, primarily the East Coast, and the
District of Columbia, and through correspondent relationships in forty-four
states and the District of Columbia.
Earnings Conference Call January 26, 2006 at 3:30 p.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke will host
an earnings conference call Thursday afternoon, January 26, 2006 at 3:30 p.m.
(ET). The toll-free dial-in number is (800) 967-7140. A telephone replay
will be available on January 26, 2006 from 7:00 p.m. (ET) through February 3,
2006, 11:59 p.m. (ET). The replay number is (888) 203-1112, passcode:
5734845. 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,
2005 2004
ASSETS
Cash and due from banks $169,234 $138,809
Repurchase agreements 182,803 267,578
Mortgage-backed and other securities
available-for-sale 1,841,351 2,406,883
Mortgage-backed and other securities
held-to-maturity
(fair value of $4,627,013 and
$6,306,760, respectively) 4,730,953 6,302,936
Federal Home Loan Bank of New York
stock, at cost 145,247 163,700
Loans held-for-sale, net 23,651 23,802
Loans receivable:
Mortgage loans, net 13,879,804 12,746,134
Consumer and other loans, net 512,489 517,145
14,392,293 13,263,279
Allowance for loan losses (81,159) (82,758)
Total loans receivable, net 14,311,134 13,180,521
Mortgage servicing rights, net 16,502 16,799
Accrued interest receivable 80,318 79,144
Premises and equipment, net 151,494 157,107
Goodwill 185,151 185,151
Bank owned life insurance 382,613 374,719
Other assets 159,820 118,720
TOTAL ASSETS $22,380,271 $23,415,869
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $12,810,455 $12,323,257
Reverse repurchase agreements 5,780,000 7,080,000
Federal Home Loan Bank of New York
advances 1,724,000 1,934,000
Other borrowings, net 433,526 455,835
Mortgage escrow funds 124,929 122,088
Accrued expenses and other liabilities 157,134 130,925
TOTAL LIABILITIES 21,030,044 22,046,105
Stockholders' equity:
Preferred stock, $1.00 par value;
5,000,000 shares authorized:
Series A (1,800,000 shares
authorized and - 0 - shares issued
and outstanding) - -
Series B (2,000,000 shares
authorized and - 0 - shares issued
and outstanding) - -
Common stock, $.01 par value;
(200,000,000 shares authorized;
166,494,888 shares issued; and
104,967,280 and 110,304,669
shares outstanding, respectively) 1,665 1,665
Additional paid-in capital 824,102 811,777
Deferred compensation (5,636) -
Retained earnings 1,774,924 1,623,571
Treasury stock (61,527,608 and
56,190,219 shares, at cost,
respectively) (1,171,604) (1,013,726)
Accumulated other comprehensive loss (49,536) (28,592)
Unallocated common stock held by ESOP
(6,465,273 and 6,802,146 shares,
respectively) (23,688) (24,931)
TOTAL STOCKHOLDERS' EQUITY 1,350,227 1,369,764
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $22,380,271 $23,415,869
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,
2005 2004 2005 2004
Interest income:
Mortgage loans:
One-to-four family $120,331 $107,375 $459,929 $428,229
Multi-family,
commercial real
estate and
construction 61,672 55,821 239,119 220,703
Consumer and other
loans 8,705 6,239 31,160 21,312
Mortgage-backed
and other securities 76,106 97,454 340,626 371,044
Federal funds sold
and repurchase
agreements 2,257 439 6,123 1,140
Federal Home Loan
Bank of New York
stock 1,630 836 6,030 3,473
Total interest income 270,701 268,164 1,082,987 1,045,901
Interest expense:
Deposits 77,471 64,181 281,399 237,429
Borrowed funds 79,546 83,104 322,808 337,906
Total interest expense 157,017 147,285 604,207 575,335
Net interest income 113,684 120,879 478,780 470,566
Provision for loan
losses - - - -
Net interest income
after provision for
loan losses 113,684 120,879 478,780 470,566
Non-interest income:
Customer service fees 17,207 14,905 66,256 58,524
Other loan fees 1,337 1,169 4,980 4,805
Net gain on sales
of securities - - - 4,651
Other-than-temporary
impairment write-
down of securities - (16,520) - (16,520)
Mortgage banking
income, net 948 811 6,015 4,715
Income from bank
owned life insurance 4,011 4,248 16,446 17,134
Other 3,056 1,430 8,502 6,775
Total non-interest
income 26,559 6,043 102,199 80,084
Non-interest expense:
General and
administrative:
Compensation and
benefits 27,600 27,138 119,417 118,684
Occupancy,
equipment and
systems 15,905 16,158 63,695 64,592
Federal deposit
insurance
premiums 433 446 1,760 1,775
Advertising 1,275 1,521 8,815 6,583
Other 7,531 8,177 35,047 33,377
Total non-interest
expense 52,744 53,440 228,734 225,011
Income before income
tax expense 87,499 73,482 352,245 325,639
Income tax expense 29,750 22,966 118,442 106,102
Net income $57,749 $50,516 $233,803 $219,537
Basic earnings per
common share $0.58 $0.48 $2.30 $2.03
Diluted earnings per
common share $0.57 $0.48 $2.26 $2.00
Basic weighted
average common
shares 99,478,069 104,395,014 101,476,376 107,930,909
Diluted weighted
average common and
common equivalent
shares 101,449,368 106,342,848 103,408,637 109,806,855
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
At or For the At or For the
Three Months Ended Twelve Months Ended
December 31, December 31,
2005 2004 2005 2004
(Annualized)
Selected Returns and
Financial Ratios
Return on average
stockholders' equity 16.97 % 14.75 % 17.06 % 15.81 %
Return on average tangible
stockholders' equity (1) 19.64 17.05 19.72 18.25
Return on average assets 1.03 0.87 1.02 0.97
General and administrative
expense to average assets 0.94 0.92 1.00 0.99
Efficiency ratio (2) 37.61 42.10 39.37 40.86
Net interest rate
spread (3) 2.03 2.09 2.11 2.09
Net interest margin (4) 2.12 2.18 2.19 2.17
Selected Operating Returns
and Financial Ratios (5)
Operating return on
average stockholders'
equity 16.97 % 17.54 % 17.06 % 16.50 %
Operating return on
average tangible
stockholders' equity (1) 19.64 20.28 19.72 19.04
Operating return on
average assets 1.03 1.04 1.02 1.01
Operating efficiency
ratio (2) 37.61 37.26 39.37 39.67
Asset Quality Data
(dollars in thousands)
Non-performing loans/total
loans 0.45 % 0.25 %
Non-performing loans/total
assets 0.29 0.14
Non-performing
assets/total assets 0.30 0.14
Allowance for loan
losses/non-performing
loans 124.81 254.02
Allowance for loan
losses/non-accrual loans 125.15 258.57
Allowance for loan
losses/total loans 0.56 0.62
Net charge-offs to average
loans outstanding 0.02 % 0.00 % 0.01 0.00
Non-performing assets $66,093 $33,499
Non-performing loans 65,027 32,579
Loans 90 days past
maturity but still
accruing interest 176 573
Non-accrual loans 64,851 32,006
Net charge-offs $888 $45 1,599 363
Capital Ratios
(Astoria Federal)
Tangible 6.53 % 5.99 %
Core 6.53 5.99
Risk-based 12.53 12.44
Other Data
Cash dividends paid per
common share $0.20 $0.17 $0.80 $0.67
Dividend payout ratio 35.09 % 35.42 % 35.40 % 33.50 %
Book value per share (6) $13.71 $13.23
Tangible book value per
share (7) 11.83 11.45
Average equity/average
assets 6.06 % 5.90 % 5.99 % 6.12 %
Mortgage loans serviced
for others (in thousands) $1,502,852 $1,670,062
Full time equivalent
employees 1,658 1,862
(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) Operating returns and financial ratios exclude the other-than-
temporary impairment write-down of securities charge of $9.6 million,
after tax, recorded in the 2004 fourth quarter.
(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, 2005
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,754,809 $120,331 4.93 %
Multi-family, commercial
real estate and construction 4,005,714 61,672 6.16
Consumer and other loans (1) 522,429 8,705 6.67
Total loans 14,282,952 190,708 5.34
Mortgage-backed and other
securities (2) 6,807,465 76,106 4.47
Federal funds sold and
repurchase agreements 229,174 2,257 3.94
Federal Home Loan Bank stock 131,178 1,630 4.97
Total interest-earning assets 21,450,769 270,701 5.05
Goodwill 185,151
Other non-interest-earning assets 825,378
Total assets $22,461,298
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,564,728 2,598 0.41
Money market 690,978 1,688 0.98
NOW and demand deposit 1,554,803 230 0.06
Liquid certificates of deposit 537,574 4,710 3.50
Total core deposits 5,348,083 9,226 0.69
Certificates of deposit 7,419,474 68,245 3.68
Total deposits 12,767,557 77,471 2.43
Borrowed funds 8,000,733 79,546 3.98
Total interest-bearing liabilities 20,768,290 157,017 3.02
Non-interest-bearing liabilities 331,989
Total liabilities 21,100,279
Stockholders' equity 1,361,019
Total liabilities and
stockholders' equity $22,461,298
Net interest income/net interest
rate spread $113,684 2.03 %
Net interest-earning assets/net
interest margin $682,479 2.12 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Three Months Ended December 31, 2004
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $8,957,442 $107,375 4.79 %
Multi-family, commercial
real estate and construction 3,580,890 55,821 6.24
Consumer and other loans (1) 508,215 6,239 4.91
Total loans 13,046,547 169,435 5.19
Mortgage-backed and other
securities (2) 8,898,349 97,454 4.38
Federal funds sold and
repurchase agreements 92,470 439 1.90
Federal Home Loan Bank stock 153,008 836 2.19
Total interest-earning assets 22,190,374 268,164 4.83
Goodwill 185,151
Other non-interest-earning assets 834,793
Total assets $23,210,318
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,938,663 2,970 0.40
Money market 990,967 1,788 0.72
NOW and demand deposit 1,569,387 237 0.06
Liquid certificates of deposit - - -
Total core deposits 5,499,017 4,995 0.36
Certificates of deposit 6,724,096 59,186 3.52
Total deposits 12,223,113 64,181 2.10
Borrowed funds 9,281,827 83,104 3.58
Total interest-bearing liabilities 21,504,940 147,285 2.74
Non-interest-bearing liabilities 335,102
Total liabilities 21,840,042
Stockholders' equity 1,370,276
Total liabilities and
stockholders' equity $23,210,318
Net interest income/net interest
rate spread $120,879 2.09 %
Net interest-earning assets/net
interest margin $685,434 2.18 %
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 reported at average amortized cost.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Twelve Months Ended December 31, 2005
Average
Average Yield/
Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,461,023 $459,929 4.86 %
Multi-family, commercial
real estate and construction 3,862,281 239,119 6.19
Consumer and other loans (1) 526,071 31,160 5.92
Total loans 13,849,375 730,208 5.27
Mortgage-backed and other
securities (2) 7,671,532 340,626 4.44
Federal funds sold and
repurchase agreements 195,863 6,123 3.13
Federal Home Loan Bank stock 130,759 6,030 4.61
Total interest-earning assets 21,847,529 1,082,987 4.96
Goodwill 185,151
Other non-interest-earning assets 852,475
Total assets $22,885,155
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,742,417 11,015 0.40
Money market 804,855 7,513 0.93
NOW and demand deposit 1,569,419 928 0.06
Liquid certificates of deposit 350,923 10,708 3.05
Total core deposits 5,467,614 30,164 0.55
Certificates of deposit 7,146,664 251,235 3.52
Total deposits 12,614,278 281,399 2.23
Borrowed funds 8,566,812 322,808 3.77
Total interest-bearing liabilities 21,181,090 604,207 2.85
Non-interest-bearing liabilities 333,522
Total liabilities 21,514,612
Stockholders' equity 1,370,543
Total liabilities and
stockholders' equity $22,885,155
Net interest income/net interest
rate spread $478,780 2.11 %
Net interest-earning assets/net
interest margin $666,439 2.19 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Twelve Months Ended December 31, 2004
Average
Average Yield/
Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $8,894,219 $428,229 4.81 %
Multi-family, commercial
real estate and construction 3,419,369 220,703 6.45
Consumer and other loans (1) 478,195 21,312 4.46
Total loans 12,791,783 670,244 5.24
Mortgage-backed and other
securities (2) 8,608,601 371,044 4.31
Federal funds sold and
repurchase agreements 86,625 1,140 1.32
Federal Home Loan Bank stock 171,419 3,473 2.03
Total interest-earning assets 21,658,428 1,045,901 4.83
Goodwill 185,151
Other non-interest-earning assets 848,106
Total assets $22,691,685
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,973,054 11,920 0.40
Money market 1,088,915 6,379 0.59
NOW and demand deposit 1,534,822 921 0.06
Liquid certificates of deposit - - -
Total core deposits 5,596,791 19,220 0.34
Certificates of deposit 6,211,014 218,209 3.51
Total deposits 11,807,805 237,429 2.01
Borrowed funds 9,184,928 337,906 3.68
Total interest-bearing liabilities 20,992,733 575,335 2.74
Non-interest-bearing liabilities 310,662
Total liabilities 21,303,395
Stockholders' equity 1,388,290
Total liabilities and
stockholders' equity $22,691,685
Net interest income/net interest
rate spread $470,566 2.09 %
Net interest-earning assets/net
interest margin $665,695 2.17 %
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 reported at average amortized cost.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
END OF PERIOD BALANCES AND RATES
(Dollars in Thousands)
At At At
December 31, September 30, December 31,
2005 2005 2004
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 $9,757,920 5.19% $9,509,514 5.13% $9,054,747 5.05%
Multi-family,
commercial
real estate
and
construction 4,039,733 5.88 3,991,029 5.85 3,621,560 5.90
Mortgage-backed
and other
securities (3) 6,572,304 4.35 7,088,515 4.35 8,709,819 4.37
Interest-bearing
liabilities:
Savings 2,510,897 0.40 2,636,201 0.40 2,929,120 0.40
Money market 648,730 0.95 729,552 0.97 965,288 0.80
NOW and demand
deposit 1,569,859 0.06 1,547,769 0.06 1,580,714 0.06
Liquid
certificates
of deposit 619,784 3.66 479,372 3.29 - -
Total core
deposits 5,349,270 0.74 5,392,894 0.64 5,475,122 0.37
Certificates
of deposit 7,461,185 3.73 7,412,756 3.58 6,848,135 3.46
Total
deposits 12,810,455 2.48 12,805,650 2.34 12,323,257 2.09
Borrowings,
net 7,937,526 3.97 8,099,498 3.84 9,469,835 3.57
(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 2004 GAAP NET INCOME TO OPERATING EARNINGS
(In Thousands, Except Per Share Data)
For the Three Months Ended For the Twelve Months Ended
December 31, 2004 December 31, 2004
GAAP Adjustments Operating GAAP Adjustments Operating
Net interest
income after
provision for
loan losses $120,879 $ - $120,879 $470,566 $ - $470,566
Non-interest
income 6,043 16,520 22,563 80,084 16,520 96,604
Non-interest
expense 53,440 - 53,440 225,011 - 225,011
Income before
income tax
expense 73,482 16,520 90,002 325,639 16,520 342,159
Income tax
expense 22,966 6,945 29,911 106,102 6,945 113,047
Net income $50,516 $9,575 $60,091 $219,537 $9,575 $229,112
Basic earnings
per common
share $0.48 $0.09 $0.58 $2.03 $0.09 $2.12
Diluted earnings
per common
share $0.48 $0.09 $0.57 $2.00 $0.09 $2.09
The above adjustments relate to the $16.5 million other-than-temporary
impairment write-down on $120.0 million of Freddie Mac preferred stock and the
related tax effects.
SOURCE Astoria Financial Corporation
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Related links:
http://ir.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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