Quarterly Cash Dividend of $0.26 Per Common Share Declared
LAKE SUCCESS, N.Y., July 18 /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 $34.1 million, or $0.37 diluted earnings per share
("EPS"), for the quarter ended June 30, 2007, compared to $47.8 million, or
$0.49 EPS, for the 2006 second quarter. For the 2007 second quarter,
annualized returns on average equity, average tangible equity and average
assets were 11.35%, 13.42% and 0.63%, respectively, compared to 14.94%,
17.48% and 0.87%, respectively, for the comparable 2006 period.
For the six months ended June 30, 2007, net income totaled $69.8
million, or $0.75 EPS, compared to $96.7 million, or $0.98 EPS, for the
comparable 2006 period. For the six months ended June 30, 2007, annualized
returns on average equity, average tangible equity and average assets were
11.59%, 13.70% and 0.65%, respectively, compared to 14.87%, 17.34% and
0.87%, respectively, for the comparable 2006 period.
First Half 2007 Balance Sheet Highlights:
-- Loan portfolio increased $611 million, or 8% annualized
-- One-to-four family loan portfolio increased $695 million, or 14%
annualized
-- Deposits increased $224 million, or 3% annualized
-- Securities portfolio decreased $552 million, or 21% annualized
-- Borrowings decreased $138 million, or 4% annualized
-- Repurchased 1.8 million shares
Commenting on the 2007 second quarter results, George L. Engelke, Jr.,
Chairman, President and Chief Executive Officer of Astoria, noted, "The
inverted yield curve, which has persisted for over a year, has recently
become slightly positively sloped. While the recent increase in long-term
interest rates is positive, there is a lag in the benefit to Astoria, as
our interest- bearing liabilities continue to reprice somewhat faster than
our interest- earning assets. During this challenging environment, I am
pleased to report that we have continued to increase both loans and
deposits during the second quarter, while controlling operating expenses
and maintaining excellent asset quality."
Board Declares Quarterly Cash Dividend of $0.26 Per Share
The Board of Directors of the Company, at their July 18, 2007 meeting,
declared a quarterly cash dividend of $0.26 per common share. The dividend
is payable on September 4, 2007 to shareholders of record as of August 15,
2007. This is the forty-ninth consecutive quarterly cash dividend declared
by the Company.
Eleventh Stock Repurchase Program Continues; Twelfth Stock Repurchase
Program In Place
During the 2007 second quarter, Astoria repurchased 750,000 shares of
its common stock at an average cost of $26.65 per share. Under the eleventh
stock repurchase program, 117,300 shares remain available for repurchase as
of June 30, 2007. During the six month period ended June 30, 2007 Astoria
repurchased a total of 1.8 million shares. The Company, as previously
announced, has in place its twelfth stock repurchase program which
authorizes the repurchase of ten million shares of its common stock. The
twelfth stock repurchase program will commence immediately upon completion
of the eleventh stock repurchase program.
Second Quarter and Six Month Earnings Summary
Net interest income for the quarter ended June 30, 2007 totaled $82.9
million compared to $87.5 million for the 2007 first quarter and $101.3
million for the second quarter a year ago. For the six months ended June
30, 2007, net interest income totaled $170.4 million compared to $212.9
million for the comparable 2006 six month period.
Astoria's net interest margin for the quarter ended June 30, 2007 was
1.62% compared to 1.71% for the 2007 first quarter and 1.92% for the
quarter ended June 30, 2006. On a linked quarter basis, in addition to the
impact of the cost of interest-bearing liabilities rising more rapidly than
the yield on interest-earning assets, approximately four basis points of
the nine basis point decline is due to one extra day of interest expense in
the second quarter. The year over year decrease in the net interest margin
is also due to the cost of interest-bearing liabilities rising more rapidly
than the yield on interest-earning assets.
Non-interest income for the quarter ended June 30, 2007 increased to
$26.3 million from $25.7 million for the 2006 second quarter. The increase
is primarily due to a $2.0 million gain related to an insurance payment
received in the 2007 second quarter, partially offset by lower mortgage
banking income, net.
For the six months ended June 30, 2007, non-interest income totaled
$48.9 million compared to $44.6 million for the comparable 2006 period.
Non- interest income for the 2007 six month period reflected a decrease of
$1.8 million in mortgage banking income, net, while the 2006 six month
period included a $5.5 million, pre-tax, charge related to the termination
of interest rate swap agreements in the 2006 first quarter.
The components of mortgage banking income, net, which is included in
non- interest income, are detailed below:
(Dollars in millions) 2Q07 2Q06 1H07 1H06
Loan servicing fees $ 1.0 $ 1.1 $ 2.0 $ 2.3
Amortization of MSR* (0.9) (0.9) (1.9) (1.9)
MSR* valuation adjustments 0.5 1.3 0.7 2.0
Net gain on sale of loans 0.6 0.6 1.0 1.2
Mortgage banking income, net $ 1.2 $ 2.1 $ 1.8 $ 3.6
* Mortgage servicing rights
General and administrative expense ("G&A") for the quarter ended June
30, 2007 increased to $58.7 million from $57.1 million for the 2007 first
quarter and $55.2 million for the comparable 2006 period. The linked
quarter increase is primarily due to a $2.3 million increase in goodwill
litigation expense, offset primarily by lower compensation and benefits
expense. The year over year increase is due primarily to increases in
goodwill litigation expense and compensation and benefits expense.
For the six months ended June 30, 2007, G&A increased $4.3 million to
$115.8 million from $111.5 million for the comparable 2006 period. The
increase was primarily due to a $2.8 million increase in goodwill
litigation expense and a $2.3 million increase in compensation and benefits
expense.
Balance Sheet Summary
For the 2007 second quarter, the total loan portfolio increased $486.6
million to $15.6 billion at June 30, 2007 due to loan originations and
purchases totaling $1.4 billion compared to $744.7 million for the
comparable 2006 period.
For the six month period ended June 30, 2007, the total loan portfolio
increased $610.6 million, or 8% annualized, due to loan originations and
purchases totaling $2.3 billion compared to $1.5 billion for the comparable
2006 period. The loan pipeline at June 30, 2007 totaled $1.0 billion, a
decrease of $344.6 million from March 31, 2007.
For the 2007 second quarter, the 1-4 family mortgage loan portfolio
increased $539.2 million and totaled $10.9 billion at June 30, 2007. 1-4
family loan originations and purchases totaled $1.3 billion for the 2007
second quarter compared to $554.3 million in the 2006 second quarter. Of
the 2007 second quarter 1-4 family loan production, 78% consisted of 3/1
and 5/1 hybrid adjustable rate mortgage loans.
For the six months ended June 30, 2007, the 1-4 family mortgage loan
portfolio increased $695.4 million due to 1-4 family loan originations and
purchases totaling $2.0 billion compared to $1.1 billion in the 2006 six
month period. Of the 2007 six month 1-4 family loan production, 76%
consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans.
For the 2007 second quarter, the multi-family and commercial real
estate ("CRE") loan portfolio decreased $27.3 million primarily due to
lower loan originations which totaled $119.9 million compared to $183.7
million for the comparable 2006 period. At June 30, 2007, the combined
multi-family and CRE loan portfolio totaled $4.1 billion, or 26% of total
loans.
For the six months ended June 30, 2007, the multi-family and CRE loan
portfolio decreased $21.9 million primarily due to lower loan originations
which totaled $253.9 million compared to $401.1 million in the 2006 six
month period. The average loan-to-value ratio of the combined multi-family
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 quarter ended June 30, 2007, non-performing loans decreased
$3.9 million, or 6%, and totaled $64.0 million, or 0.30% of total assets,
from $67.9 million, or 0.32% of total assets, at March 31, 2007. As of June
30, 2007, 1-4 family non-performing loans totaled $53.5 million and
multi-family and CRE non-performing loans totaled $8.8 million. The ratio
of the allowance for loan losses to non-performing loans at June 30, 2007
was 124%.
Net loan charge-offs for the quarter ended June 30, 2007 totaled
$698,000 compared to net loan recoveries of $155,000 for the 2007 first
quarter. For the six months ended June 30, 2007, net loan charge-offs
totaled $543,000 compared to $96,000 for the 2006 six month period, or less
than one basis point of average loans outstanding, annualized, for each
period.
Deposits increased $25.9 million during the 2007 second quarter and
totaled $13.4 billion at June 30, 2007. For the six months ended June 30,
2007, deposits increased $223.8 million, or 3% annualized.
For the quarter ended June 30, 2007, securities declined $300.1 million
to $4.8 billion at June 30, 2007, representing 22% of total assets. For the
six months ended June 30, 2007, securities declined $552.0 million, or 21%
annualized. Borrowings increased $302.2 million in the 2007 second quarter,
to $6.7 billion at June 30, 2007, representing 31% of total assets. For the
six months ended June 30, 2007, borrowings declined $137.7 million, or 4%
annualized. Total assets increased slightly from December 31, 2006 to $21.6
billion at June 30, 2007.
Key balance sheet highlights, reflecting the improvement in the quality
of the Company's balance sheet since December 31, 1999, follow:
($ in millions) 12/31/99 12/31/01 12/31/03 12/31/05
Assets $22,700 $22,672 $22,462 $22,380
Loans $10,286 $12,167 $12,687 $14,392
Securities $10,763 $8,013 $8,448 $6,572
Deposits $9,555 $10,904 $11,187 $12,810
Borrowings $11,528 $9,826 $9,632 $7,938
($ in millions) Cumulative
12/31/06 06/30/07 % Change
Assets $21,555 $21,650 ( 5%)
Loans $14,972 $15,582 + 51%
Securities $5,340 $4,788 (56%)
Deposits $13,224 $13,448 + 41%
Borrowings $6,836 $6,698 (42%)
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
Loans $ 66.28 $ 89.36 $107.51 $137.11
Deposits $ 61.57 $ 80.09 $ 94.80 $122.04
Amount per share 12/31/06 06/30/07 % Change CAGR
Loans $152.44 $160.89 143% 13%
Deposits $134.65 $138.85 126% 11%
Stockholders' equity was $1.2 billion, or 5.52% of total assets at June
30, 2007. Astoria Federal continues to maintain capital ratios in excess of
regulatory requirements with core, tangible and risk-based capital ratios
of 6.65%, 6.65% and 12.19%, respectively, at June 30, 2007.
Future Outlook
Commenting on the outlook for the second half of 2007, Mr. Engelke
stated, "The operating environment has improved slightly in the last
several months, but remains challenging. The yield curve, which has
recently become positively sloped, still remains relatively flat, limiting
profitable growth opportunities. We expect the yield curve to remain
relatively flat for the remainder of 2007 and into 2008 which will result
in a relatively stable net interest margin for 2007, similar to the 2007
second quarter margin. We will, therefore, maintain 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. We will also focus on the repurchase of our
stock as a very desirable use of capital, maintaining the Company's
tangible capital levels between 4.50% and 4.75%."
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $21.6 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 $13.4 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 July 19, 2007 at 9:30 a.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke will
host an earnings conference call Thursday morning, July 19, 2007 at 9:30
a.m. (ET). The toll-free dial-in number is (888) 562-3356, conference ID #
8921889. A telephone replay will be available on July 19, 2007 from 1:00
p.m. (ET) through Friday, July 27, 2007, 11:59 p.m. (ET). The replay number
is (877) 519-4471, ID # 8921889. 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
June 30, December 31,
2007 2006
ASSETS
Cash and due from banks $162,409 $134,016
Repurchase agreements 44,482 71,694
Securities available-for-sale 1,396,922 1,560,325
Securities held-to-maturity
(fair value of $3,274,832 and
$3,681,514, respectively) 3,390,713 3,779,356
Federal Home Loan Bank of New York
stock, at cost 155,601 153,640
Loans held-for-sale, net 20,772 16,542
Loans receivable:
Mortgage loans, net 15,188,465 14,532,503
Consumer and other loans, net 393,840 439,188
15,582,305 14,971,691
Allowance for loan losses (79,399) (79,942)
Total loans receivable, net 15,502,906 14,891,749
Mortgage servicing rights, net 15,354 15,944
Accrued interest receivable 78,161 78,761
Premises and equipment, net 142,977 145,231
Goodwill 185,151 185,151
Bank owned life insurance 393,933 385,952
Other assets 160,490 136,158
TOTAL ASSETS $21,649,871 $21,554,519
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $13,447,856 $13,224,024
Reverse repurchase agreements 4,280,000 4,480,000
Federal Home Loan Bank of New York
advances 2,002,000 1,940,000
Other borrowings, net 416,342 416,002
Mortgage escrow funds 151,733 132,080
Accrued expenses and other liabilities 156,908 146,659
TOTAL LIABILITIES 20,454,839 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
96,851,570 and 98,211,827
shares outstanding, respectively) 1,665 1,665
Additional paid-in capital 838,791 828,940
Retained earnings 1,877,237 1,856,528
Treasury stock (69,643,318 and
68,283,061 shares, at cost,
respectively) (1,430,864) (1,390,495)
Accumulated other comprehensive loss (69,947) (58,330)
Unallocated common stock held by ESOP
(5,963,755 and 6,155,918 shares,
respectively) (21,850) (22,554)
TOTAL STOCKHOLDERS' EQUITY 1,195,032 1,215,754
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $21,649,871 $21,554,519
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share Data)
For the Three Months For the Six Months
Ended Ended
June 30, June 30,
2007 2006 2007 2006
Interest income:
Mortgage loans:
One-to-four family $141,568 $125,606 $278,084 $250,491
Multi-family,
commercial real
estate and
construction 64,438 63,986 129,108 126,245
Consumer and other loans 7,812 8,972 16,006 17,819
Mortgage-backed and
other securities 55,885 68,532 114,900 140,427
Federal funds sold and
repurchase agreements 499 2,296 1,475 3,939
Federal Home Loan
Bank of New York stock 2,749 1,797 5,347 3,486
Total interest income 272,951 271,189 544,920 542,407
Interest expense:
Deposits 114,096 90,549 224,454 173,254
Borrowings 75,964 79,324 150,048 156,291
Total interest expense 190,060 169,873 374,502 329,545
Net interest income 82,891 101,316 170,418 212,862
Provision for loan losses - - - -
Net interest income
after provision for
loan losses 82,891 101,316 170,418 212,862
Non-interest income:
Customer service fees 16,159 16,440 31,328 33,038
Other loan fees 1,110 962 2,328 1,772
Mortgage banking
income, net 1,224 2,147 1,840 3,629
Income from bank owned
life insurance 4,287 4,031 8,490 8,106
Other 3,500 2,147 4,891 (1,921)
Total non-interest income 26,280 25,727 48,877 44,624
Non-interest expense:
General and
administrative:
Compensation and
benefits 30,046 28,528 61,170 58,839
Occupancy, equipment
and systems 16,494 16,297 33,015 33,105
Federal deposit
insurance premiums 407 415 814 849
Advertising 1,977 1,902 3,892 3,829
Other 9,783 8,077 16,936 14,906
Total non-interest expense 58,707 55,219 115,827 111,528
Income before income
tax expense 50,464 71,824 103,468 145,958
Income tax expense 16,400 24,061 33,627 49,261
Net income $34,064 $47,763 $69,841 $96,697
Basic earnings per
common share $0.38 $0.50 $0.77 $1.00
Diluted earnings per
common share $0.37 $0.49 $0.75 $0.98
Basic weighted average
common shares 90,704,749 95,477,528 91,062,161 96,386,742
Diluted weighted average
common and common
equivalent shares 92,166,978 98,059,723 92,864,131 98,974,405
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
For the At or For the
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Selected Returns and Financial
Ratios (annualized)
Return on average
stockholders' equity 11.35 % 14.94 % 11.59 % 14.87 %
Return on average tangible
stockholders' equity (1) 13.42 17.48 13.70 17.34
Return on average assets 0.63 0.87 0.65 0.87
General and administrative
expense to average assets 1.09 1.00 1.08 1.01
Efficiency ratio (2) 53.78 43.46 52.82 43.31
Net interest rate
spread (3) 1.50 1.82 1.55 1.91
Net interest margin (4) 1.62 1.92 1.66 2.01
Selected Non-GAAP Returns
and Financial Ratios
(annualized) (5)
Non-GAAP return on average
stockholders' equity 11.59 % 15.43 %
Non-GAAP return on
average tangible
stockholders' equity (1) 13.70 17.99
Non-GAAP return on
average assets 0.65 0.91
Non-GAAP efficiency
ratio (2) 52.82 42.42
Asset Quality Data
(dollars in thousands)
Non-performing
loans/total loans 0.41 % 0.37 %
Non-performing
loans/total assets 0.30 0.25
Non-performing
assets/total assets 0.30 0.25
Allowance for loan
losses/non-
performing loans 124.07 149.31
Allowance for loan
losses/non-accrual
loans 125.29 150.81
Allowance for loan
losses/total loans 0.51 0.55
Net charge-offs to
average loans
outstanding
(annualized) 0.02 % 0.00 % 0.01 0.00
Non-performing assets $65,921 $55,361
Non-performing loans 63,996 54,290
Loans 90 days past
maturity but still
accruing interest 625 537
Non-accrual loans 63,371 53,753
Net charge-offs $698 $80 543 96
Capital Ratios (Astoria
Federal)
Tangible 6.65 % 6.53 %
Core 6.65 6.53
Risk-based 12.19 12.22
Other Data
Cash dividends paid
per common share $0.26 $0.24 $0.52 $0.48
Dividend payout ratio 70.27 % 48.98 % 69.33 % 48.98 %
Book value per share (6) $13.15 $13.38
Tangible book value
per share (7) $11.11 $11.43
Tangible stockholders'
equity/tangible
assets (1) (8) 4.70 % 5.00 %
Mortgage loans
serviced for others
(in thousands) $1,305,916 $1,430,746
Full time equivalent
employees 1,628 1,635
(1) Tangible stockholders' equity represents stockholders' equity less
goodwill.
(2) The efficiency ratio represents general and administrative expense
divided by the sum of net interest income plus non-interest income.
Net interest rate spread represents the difference between the average
(3) 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 six months ended June 30, 2006
represents pro forma calculations which are not in conformity with
U.S. generally accepted accounting principles, or GAAP. The 2006
information excludes the $3.6 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 six
months ended June 30, 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.
(8) Tangible assets represent assets less goodwill.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Three Months Ended June 30,
2007
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,749,335 $141,568 5.27 %
Multi-family, commercial
real estate and construction 4,200,044 64,438 6.14
Consumer and other loans (1) 406,437 7,812 7.69
Total loans 15,355,816 213,818 5.57
Mortgage-backed and other
securities (2) 4,964,564 55,885 4.50
Federal funds sold and
repurchase agreements 37,742 499 5.29
Federal Home Loan Bank stock 155,056 2,749 7.09
Total interest-earning assets 20,513,178 272,951 5.32
Goodwill 185,151
Other non-interest-earning assets 763,554
Total assets $21,461,883
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,061,648 2,074 0.40
Money market 391,139 970 0.99
NOW and demand deposit 1,495,582 214 0.06
Liquid certificates of deposit 1,659,796 20,241 4.88
Total core deposits 5,608,165 23,499 1.68
Certificates of deposit 7,724,775 90,597 4.69
Total deposits 13,332,940 114,096 3.42
Borrowings 6,562,399 75,964 4.63
Total interest-bearing
liabilities 19,895,339 190,060 3.82
Non-interest-bearing liabilities 365,877
Total liabilities 20,261,216
Stockholders' equity 1,200,667
Total liabilities and stockholders'
equity $21,461,883
Net interest income/net interest
rate spread $82,891 1.50 %
Net interest-earning assets/net
interest margin $617,839 1.62 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Three Months Ended June 30,
2006
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,920,003 $125,606 5.06 %
Multi-family, commercial
real estate and construction 4,214,459 63,986 6.07
Consumer and other loans (1) 490,463 8,972 7.32
Total loans 14,624,925 198,564 5.43
Mortgage-backed and other
securities (2) 6,099,829 68,532 4.49
Federal funds sold and
repurchase agreements 189,049 2,296 4.86
Federal Home Loan Bank stock 142,884 1,797 5.03
Total interest-earning assets 21,056,687 271,189 5.15
Goodwill 185,151
Other non-interest-earning assets 778,676
Total assets $22,020,514
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,396,537 2,405 0.40
Money market 563,782 1,381 0.98
NOW and demand deposit 1,540,556 224 0.06
Liquid certificates of deposit 966,457 10,397 4.30
Total core deposits 5,467,332 14,407 1.05
Certificates of deposit 7,485,159 76,142 4.07
Total deposits 12,952,491 90,549 2.80
Borrowings 7,433,642 79,324 4.27
Total interest-bearing liabilities 20,386,133 169,873 3.33
Non-interest-bearing liabilities 355,948
Total liabilities 20,742,081
Stockholders' equity 1,278,433
Total liabilities and stockholders'
equity $22,020,514
Net interest income/net interest
rate spread $101,316 1.82 %
Net interest-earning assets/net
interest margin $670,554 1.92 %
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 Six Months Ended June 30,
2007
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,568,690 $278,084 5.26 %
Multi-family, commercial
real estate and construction 4,214,404 129,108 6.13
Consumer and other loans (1) 418,631 16,006 7.65
Total loans 15,201,725 423,198 5.57
Mortgage-backed and other
securities (2) 5,096,922 114,900 4.51
Federal funds sold and
repurchase agreements 56,009 1,475 5.27
Federal Home Loan Bank stock 151,880 5,347 7.04
Total interest-earning assets 20,506,536 544,920 5.31
Goodwill 185,151
Other non-interest-earning assets 760,102
Total assets $21,451,789
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,080,553 4,161 0.40
Money market 406,441 2,007 0.99
NOW and demand deposit 1,480,253 425 0.06
Liquid certificates of deposit 1,592,477 38,777 4.87
Total core deposits 5,559,724 45,370 1.63
Certificates of deposit 7,712,371 179,084 4.64
Total deposits 13,272,095 224,454 3.38
Borrowings 6,623,738 150,048 4.53
Total interest-bearing liabilities 19,895,833 374,502 3.76
Non-interest-bearing liabilities 351,122
Total liabilities 20,246,955
Stockholders' equity 1,204,834
Total liabilities and stockholders'
equity $21,451,789
Net interest income/net interest
rate spread $170,418 1.55 %
Net interest-earning assets/net
interest margin $610,703 1.66 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Six Months Ended June 30,
2006
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,905,279 $250,491 5.06 %
Multi-family, commercial
real estate and construction 4,153,353 126,245 6.08
Consumer and other loans (1) 498,280 17,819 7.15
Total loans 14,556,912 394,555 5.42
Mortgage-backed and other
securities (2) 6,263,198 140,427 4.48
Federal funds sold and
repurchase agreements 170,104 3,939 4.63
Federal Home Loan Bank stock 140,855 3,486 4.95
Total interest-earning assets 21,131,069 542,407 5.13
Goodwill 185,151
Other non-interest-earning assets 792,174
Total assets $22,108,394
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,432,131 4,855 0.40
Money market 592,217 2,854 0.96
NOW and demand deposit 1,528,357 444 0.06
Liquid certificates of deposit 848,717 17,452 4.11
Total core deposits 5,401,422 25,605 0.95
Certificates of deposit 7,517,750 147,649 3.93
Total deposits 12,919,172 173,254 2.68
Borrowings 7,542,721 156,291 4.14
Total interest-bearing liabilities 20,461,893 329,545 3.22
Non-interest-bearing liabilities 345,909
Total liabilities 20,807,802
Stockholders' equity 1,300,592
Total liabilities and stockholders'
equity $22,108,394
Net interest income/net interest
rate spread $212,862 1.91 %
Net interest-earning assets/net
interest margin $669,176 2.01 %
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 June 30, 2007 At March 31, 2007
Weighted Weighted
Average Average
Balance Rate (1) Balance Rate (1)
Selected interest-earning
assets:
Mortgage loans, gross (2):
One-to-four family $10,909,568 5.58% $10,370,347 5.51%
Multi-family,
commercial real estate
and construction 4,179,772 5.94 4,216,228 5.94
Mortgage-backed and
other securities (3) 4,787,635 4.34 5,087,727 4.34
Interest-bearing liabilities:
Savings 2,025,132 0.40 2,084,922 0.40
Money market 377,455 1.00 411,337 1.00
NOW and demand deposit 1,489,624 0.06 1,527,864 0.06
Liquid certificates
of deposit 1,664,176 4.83 1,624,660 4.93
Total core deposits 5,556,387 1.68 5,648,783 1.65
Certificates of deposit 7,891,469 4.76 7,773,223 4.71
Total deposits 13,447,856 3.49 13,422,006 3.42
Borrowings, net 6,698,342 4.62 6,396,172 4.47
At June 30, 2006
Weighted
Average
Balance Rate (1)
Selected interest-earning assets:
Mortgage loans, gross (2):
One-to-four family $ 9,824,066 5.32%
Multi-family, commercial real estate
and construction 4,245,697 5.95
Mortgage-backed and other securities (3) 5,870,733 4.34
Interest-bearing liabilities:
Savings 2,352,923 0.40
Money market 537,602 1.01
NOW and demand deposit 1,535,833 0.06
Liquid certificates of deposit 1,117,478 4.54
Total core deposits 5,543,836 1.20
Certificates of deposit 7,548,396 4.26
Total deposits 13,092,232 2.96
Borrowings, net 7,202,662 4.29
(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 Six Months Ended
June 30, 2006
GAAP Adjustments (4) Non-GAAP
Net interest income after
provision for loan losses $ 212,862 $ - $ 212,862
Non-interest income 44,624 5,456 50,080
Non-interest expense 111,528 - 111,528
Income before income tax expense 145,958 5,456
151,414
Income tax expense 49,261 1,841 51,102
Net income $96,697 $ 3,615 $ 100,312
Basic earnings per common share $1.00 $0.04 $1.04
Diluted earnings per common share $0.98 $0.04 $1.01 (5)
(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://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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