Quarterly Cash Dividend of $0.26 Per Common Share Declared
LAKE SUCCESS, N.Y., Oct. 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 $35.3 million, or $0.39 diluted earnings per share
("EPS"), for the quarter ended September 30, 2007, compared to $41.1
million, or $0.43 EPS, for the 2006 third quarter. For the 2007 third
quarter, annualized returns on average equity, average tangible equity and
average assets were 11.82%, 13.99% and 0.66%, respectively, compared to
13.06%, 15.31% and 0.76%, respectively, for the comparable 2006 period.
For the nine months ended September 30, 2007, net income totaled $105.1
million, or $1.14 EPS, compared to $137.8 million, or $1.40 EPS, for the
comparable 2006 period. For the nine months ended September 30, 2007,
annualized returns on average equity, average tangible equity and average
assets were 11.67%, 13.79% and 0.65%, respectively, compared to 14.27%,
16.67% and 0.84%, respectively, for the comparable 2006 period.
Commenting on the quarterly results, George L. Engelke, Jr., Chairman
and Chief Executive Officer of Astoria, noted, "The 2007 third quarter
operating results were in line with our expectations and continued to
reflect the impact of a prolonged flat-to-inverted yield curve. The recent
decrease in interest rates by the Federal Reserve has produced a positively
sloped yield curve and a more favorable operating environment for us going
forward."
Board Declares Quarterly Cash Dividend of $0.26 Per Share
The Board of Directors of the Company, at their October 17, 2007
meeting, declared a quarterly cash dividend of $0.26 per common share. The
dividend is payable on December 3, 2007 to shareholders of record as of
November 15, 2007. This is the fiftieth consecutive quarterly cash dividend
declared by the Company.
Eleventh Stock Repurchase Program Completed; Twelfth Stock Repurchase
Program Commenced
During the 2007 third quarter, Astoria completed its eleventh stock
repurchase program and commenced its twelfth stock repurchase program,
repurchasing 750,000 shares of its common stock at an average cost of
$25.38 per share. During the nine month period ended September 30, 2007
Astoria repurchased a total of 2.5 million shares. Under the twelfth
program, 9.4 million shares remain available for repurchase.
Third Quarter and Nine Month Earnings Summary
Net interest income for the quarter ended September 30, 2007 totaled
$81.2 million compared to $82.9 million for the 2007 second quarter and
$90.7 million for the third quarter a year ago. For the nine months ended
September 30, 2007, net interest income totaled $251.6 million compared to
$303.5 million for the comparable 2006 nine month period.
Astoria's net interest margin for the quarter ended September 30, 2007
was 1.58% compared to 1.62% for the 2007 second quarter and 1.75% for the
quarter ended September 30, 2006. For the nine months ended September 30,
2007, the net interest margin was 1.63% compared to 1.93% for the 2006 nine
month period. The four basis point decrease, on a linked quarter basis, is
due to one extra day of interest expense in the 2007 third quarter. The
year over year quarter and nine month decreases are 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 September 30, 2007 increased
$1.9 million to $24.8 million from $22.9 million for the 2007 third
quarter, due entirely to a gain on the sale of an equity security position.
For the nine months ended September 30, 2007, non-interest income
totaled $73.7 million compared to $67.5 million for the comparable 2006
period. Non-interest income for the 2006 nine 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) 3Q07 3Q06 9 Mos. 07 9 Mos. 06
Loan servicing fees $ 1.0 $ 1.1 $ 3.0 $ 3.4
Amortization of MSR* (0.7) (0.9) (2.6) (2.8)
MSR* valuation adjustments (0.4) (0.5) 0.3 1.5
Net gain on sale of loans 0.3 0.5 1.3 1.7
Mortgage banking income, net $ 0.2 $ 0.2 $ 2.0 $ 3.8
* Mortgage servicing rights
General and administrative expense ("G&A") for the quarter ended
September 30, 2007 declined $2.2 million to $56.5 million from $58.7
million for the 2007 second quarter and increased $3.2 million from the
2006 third quarter. The linked quarter decrease is primarily due to lower
goodwill litigation and advertising expense. The third quarter year over
year increase is due primarily to an increase in compensation and benefits
expense.
For the nine months ended September 30, 2007, G&A increased $7.6
million to $172.4 million from $164.8 million for the comparable 2006
period. The increase was primarily due to increases in compensation and
benefits and goodwill litigation expense.
Income tax expense for the quarter ended September 30, 2007 decreased
$2.8 million from the prior quarter to $13.6 million, for an effective tax
rate of 27.9%, due to the release of accruals for previous tax positions
that have statutorily expired. It is expected that the fourth quarter
effective tax rate should return to a more normal level of approximately
30%.
Balance Sheet Summary
For the 2007 third quarter, the loan portfolio increased $371.0 million
from the prior quarter, or 9.5% on an annualized basis, to $16.0 billion at
September 30, 2007. Loan originations and purchases totaled $1.1 billion
for the quarter ended September 30, 2007 compared to $868.6 million for the
2006 third quarter.
For the nine months ended September 30, 2007, the loan portfolio
increased $981.6 million. Loan originations and purchases totaled $3.3
billion for the nine months ended September 30, 2007 compared to $2.4
billion for the comparable 2006 period. The loan pipeline at September 30,
2007 totaled $1.4 billion, an increase of $330.1 million over the pipeline
at June 30, 2007.
For the 2007 third quarter, the one-to-four family mortgage loan
portfolio increased $440.1 million from the prior quarter, or 16.1%
annualized, to $11.3 billion at September 30, 2007. One-to-four family loan
originations and purchases totaled $982.0 million for the 2007 third
quarter compared to $706.6 million for the 2006 third quarter. Of the 2007
third quarter one-to-four family loan production, 74% consisted of 3/1 and
5/1 hybrid adjustable rate mortgage loans.
For the nine months ended September 30, 2007, the one-to-four family
mortgage loan portfolio increased $1.1 billion. Loan originations and
purchases totaled $3.0 billion for the 2007 nine month period compared to
$1.8 billion for the 2006 nine month period. Of the 2007 nine month
one-to-four family loan production, 75% consisted of 3/1 and 5/1 hybrid
adjustable rate mortgage loans.
For the 2007 third quarter, the multi-family and commercial real estate
("CRE") loan portfolio decreased $32.6 million from the prior quarter,
primarily due to lower loan originations which totaled $90.5 million
compared to loan originations of $158.2 million for the comparable 2006
period. At September 30, 2007, the combined multi-family and CRE loan
portfolio totaled $4.0 billion, or 25% of total loans.
For the nine months ended September 30, 2007, the multi-family and CRE
loan portfolio decreased $54.4 million primarily due to lower loan
originations which totaled $344.4 million compared to $559.4 million for
the 2006 nine 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 September 30, 2007, non-performing loans
increased $18.3 million from the previous quarter to $82.3 million, or
0.38% of total assets, primarily due to an increase in one-to-four family
non-performing loans. As of September 30, 2007, one-to-four family
non-performing loans totaled $68.2 million and multi-family and CRE
non-performing loans totaled $9.4 million. The ratio of the allowance for
loan losses to non-performing loans at September 30, 2007 was 95%.
Net loan charge-offs for the quarter ended September 30, 2007 totaled
$1.6 million compared to net loan charge-offs of $1.1 million for the 2006
third quarter. The 2007 third quarter charge-offs include a $1.5 million
charge-off on a non-performing construction loan which was sold. For the
nine months ended September 30, 2007, net loan charge-offs totaled $2.2
million, or just two basis points, annualized, of average loans, compared
to $1.2 million, or one basis point, annualized, of average loans, for the
2006 nine month period.
For the quarter ended September 30, 2007, Astoria recorded a $500,000
provision for loan losses, the first provision in a number of years. Mr.
Engelke noted, "Our asset quality remains strong and net charge-offs remain
very low. However, in recognition of, among other things, the recent
increase in non-performing loans, an addition to our loan loss reserve was
appropriate."
For the quarter and nine months ended September 30, 2007, deposits
decreased $181.9 million and increased $42.0 million, respectively, to
$13.3 billion. "During the third quarter, retail deposit pricing remained
very competitive even as short-term market interest rates declined. As a
result of our efforts to maintain deposit pricing discipline, we have taken
advantage of lower cost borrowings for funding some of our loan growth this
quarter," Mr. Engelke noted.
For the quarter and nine months ended September 30, 2007, securities
decreased $219.1 million and $771.1 million, respectively, to $4.6 billion,
or 21% of total assets at September 30, 2007. For the quarter and nine
months ended September 30, 2007, borrowings increased $231.2 million and
$93.5 million, respectively, to $6.9 billion, or 32% of total assets at
September 30, 2007. Total assets increased $96.2 million from the previous
quarter and $191.6 million from December 31, 2006 and totaled $21.7 billion
at September 30, 2007.
Key balance sheet highlights, reflecting the improvement in the quality
of the Company's balance sheet since December 31, 1999, follow:
($ in Cumulative
millions) 12/31/99 12/31/01 12/31/03 12/31/05 12/31/06 09/30/07 % Change
Assets $22,700 $22,672 $22,462 $22,380 $21,555 $21,746 (4%)
Loans $10,286 $12,167 $12,687 $14,392 $14,972 $15,953 + 55 %
Securities $10,763 $8,013 $8,448 $6,572 $5,340 $4,569 (58%)
Deposits $9,555 $10,904 $11,187 $12,810 $13,224 $13,266 + 39 %
Borrowings $11,528 $9,826 $9,632 $7,938 $6,836 $6,930 (40%)
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 09/30/07 Change CAGR
Loans $ 66.28 $ 89.36 $107.51 $137.11 $152.44 $165.83 150% 13%
Deposits $ 61.57 $ 80.09 $ 94.80 $122.04 $134.65 $137.90 124% 11%
Stockholders' equity was $1.2 billion, or 5.54% of total assets at
September 30, 2007. Astoria Federal continues to maintain capital ratios in
excess of regulatory requirements with core, tangible and risk-based
capital ratios of 6.60%, 6.60% and 12.08%, respectively, at September 30,
2007.
Future Outlook
Commenting on the outlook for the remainder of 2007 and 2008, Mr.
Engelke stated, "The recent decrease in short-term interest rates by the
Federal Reserve has produced a more positively sloped yield curve and a
more favorable operating environment for us going forward. In addition, the
recent dislocation in the secondary residential mortgage market has
resulted in improved loan volumes and mortgage spreads for portfolio
lenders such as Astoria. We anticipate the yield curve will remain
positively sloped for the remainder of 2007 and 2008 which should result in
earning asset growth and an expansion of our net interest margin in 2008.
Our focus going forward will be to continue to capitalize on residential
mortgage market dislocations, which we believe will produce robust quality
loan growth. Deposit growth will remain a focus; however, in the near term,
if competitive pricing continues, we may fund some of our loan growth with
lower cost borrowings and normal cash flow from the securities portfolio.
We expect to continue to maintain 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 $21.7 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 $13.3 billion and embraces its philosophy of "Putting
people first" by providing the customers and local communities it serves
with quality financial products and services through 86 convenient banking
office locations and multiple delivery channels, including its enhanced
website, http://www.astoriafederal.com. Astoria Federal commands the fourth
largest deposit market share in the attractive Long Island market, which
includes Brooklyn, Queens, Nassau, and Suffolk counties with a population
exceeding that of 38 individual states. Astoria Federal originates mortgage
loans through its banking offices and loan production offices in New York,
an extensive broker network covering twenty-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 October 18, 2007 at 3:30 p.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke will
host an earnings conference call Thursday afternoon, October 18, 2007 at
3:30 p.m. (ET). The toll-free dial-in number is (888) 562-3356, conference
ID #9240715. A telephone replay will be available on October 18, 2007 from
7:00 p.m. (ET) through Friday, October 26, 2007, 11:59 p.m. (ET). The
replay number is (877) 519-4471, ID # 9240715. 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 September 30, At December 31,
2007 2006
ASSETS
Cash and due from banks $123,314 $134,016
Repurchase agreements 34,143 71,694
Securities available-for-sale 1,358,362 1,560,325
Securities held-to-maturity
(fair value of $3,140,725 and
$3,681,514, respectively) 3,210,217 3,779,356
Federal Home Loan Bank of New York
stock, at cost 180,631 153,640
Loans held-for-sale, net 8,796 16,542
Loans receivable:
Mortgage loans, net 15,576,834 14,532,503
Consumer and other loans, net 376,445 439,188
15,953,279 14,971,691
Allowance for loan losses (78,254) (79,942)
Total loans receivable, net 15,875,025 14,891,749
Mortgage servicing rights, net 14,589 15,944
Accrued interest receivable 82,193 78,761
Premises and equipment, net 141,131 145,231
Goodwill 185,151 185,151
Bank owned life insurance 393,899 385,952
Other assets 138,651 136,158
TOTAL ASSETS $21,746,102 $21,554,519
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $13,265,995 $13,224,024
Reverse repurchase agreements 3,980,000 4,480,000
Federal Home Loan Bank of New York
advances 2,553,000 1,940,000
Other borrowings, net 396,500 416,002
Mortgage escrow funds 167,431 132,080
Accrued expenses and other
liabilities 177,501 146,659
TOTAL LIABILITIES 20,540,427 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
96,203,234 and 98,211,827
shares outstanding, respectively) 1,665 1,665
Additional paid-in capital 842,339 828,940
Retained earnings 1,888,432 1,856,528
Treasury stock (70,291,654 and
68,283,061 shares, at cost,
respectively) (1,447,809) (1,390,495)
Accumulated other comprehensive loss (57,407) (58,330)
Unallocated common stock held by
ESOP
(5,880,457 and 6,155,918 shares,
respectively) (21,545) (22,554)
TOTAL STOCKHOLDERS' EQUITY 1,205,675 1,215,754
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $21,746,102 $21,554,519
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share Data)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
2007 2006 2007 2006
Interest income:
Mortgage loans:
One-to-four family $150,645 $127,735 $428,729 $378,226
Multi-family,
commercial real
estate and
construction 63,052 65,933 192,160 192,178
Consumer and other loans 7,472 9,099 23,478 26,918
Mortgage-backed and
other securities 53,227 64,946 168,127 205,373
Federal funds sold
and repurchase
agreements 337 1,266 1,812 5,205
Federal Home Loan
Bank of New York stock 2,899 2,049 8,246 5,535
Total interest income 277,632 271,028 822,552 813,435
Interest expense:
Deposits 116,950 102,103 341,404 275,357
Borrowings 79,505 78,258 229,553 234,549
Total interest expense 196,455 180,361 570,957 509,906
Net interest income 81,177 90,667 251,595 303,529
Provision for loan losses 500 - 500 -
Net interest income
after provision for
loan losses 80,677 90,667 251,095 303,529
Non-interest income:
Customer service fees 15,920 16,170 47,248 49,208
Other loan fees 1,153 983 3,481 2,755
Net gain on sales of
securities 1,992 - 1,992 -
Mortgage banking
income, net 155 181 1,995 3,810
Income from bank
owned life insurance 4,238 3,957 12,728 12,063
Other 1,347 1,573 6,238 (348)
Total non-interest income 24,805 22,864 73,682 67,488
Non-interest expense:
General and administrative:
Compensation and
benefits 30,587 27,584 91,757 86,423
Occupancy,
equipment and systems 16,159 16,104 49,174 49,209
Federal deposit
insurance premiums 388 414 1,202 1,263
Advertising 1,390 1,839 5,282 5,668
Other 8,020 7,374 24,956 22,280
Total non-interest
expense 56,544 53,315 172,371 164,843
Income before income
tax expense 48,938 60,216 152,406 206,174
Income tax expense 13,630 19,122 47,257 68,383
Net income $35,308 $41,094 $105,149 $137,791
Basic earnings per
common share $0.39 $0.44 $1.16 $1.44
Diluted earnings per
common share $0.39 $0.43 $1.14 $1.40
Basic weighted average
common shares 90,174,456 93,944,367 90,763,008 95,563,670
Diluted weighted
average common and
common equivalent
shares 91,543,600 96,489,271 92,420,702 98,137,080
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
For the At or For the
Three Months Ended Nine Months Ended
September 30, September 30,
2007 2006 2007 2006
Selected Returns and Financial Ratios (annualized)
Return on average
stockholders' equity 11.82 % 13.06 % 11.67 % 14.27 %
Return on average
tangible stockholders'
equity (1) 13.99 15.31 13.79 16.67
Return on average assets 0.66 0.76 0.65 0.84
General and
administrative expense
to average assets 1.05 0.98 1.07 1.00
Efficiency ratio (2) 53.35 46.96 52.99 44.43
Net interest rate
spread(3) 1.46 1.64 1.52 1.83
Net interest margin (4) 1.58 1.75 1.63 1.93
Selected Non-GAAP Returns
and Financial Ratios
(annualized) (5)
Non-GAAP return on
average stockholders'
equity 11.67 % 14.65 %
Non-GAAP return on
average tangible
stockholders' equity
(1) 13.79 17.11
Non-GAAP return on
average assets 0.65 0.86
Non-GAAP efficiency
ratio (2) 52.99 43.79
Asset Quality Data (dollars in thousands)
Non-performing loans/total loans 0.52 % 0.37 %
Non-performing loans/total assets 0.38 0.25
Non-performing assets/total assets 0.40 0.26
Allowance for loan losses/non-performing 95.06 145.16
Allowance for loan losses/non-accrual loans 98.79 146.50
Allowance for loan losses/total loans 0.49 0.54
Net charge-offs to
average loans
outstanding annualized) 0.04 % 0.03 % 0.02 0.01
Non-performing assets $86,653 $55,488
Non-performing loans 82,317 55,063
Loans 90 days past
maturity but still
accruing interest 3,103 502
Non-accrual loans (6) 79,214 54,561
Net charge-offs $1,645 $1,133 2,188 1,229
Capital Ratios (Astoria Federal)
Tangible 6.60 % 6.84 %
Core 6.60 6.84
Risk-based 12.08 12.66
Other Data
Cash dividends paid per
common share $0.26 $0.24 $0.78 $0.72
Dividend payout ratio 66.67 % 55.81 % 68.42 % 51.43 %
Book value per share (7) $13.35 $13.55
Tangible book value per
share (8) $11.30 $11.56
Tangible stockholders'
equity/tangible
assets (1) (9) 4.73 % 5.02 %
Mortgage loans serviced
for others (in
thousands) $1,286,661 $1,394,240
Full time equivalent
employees 1,629 1,597
(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.
(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 nine months ended September 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 nine months ended September 30, 2006.
(6) Non-accrual loans include $24.1 million at September 30, 2007 and
$19.8 million at September 30, 2006 of loans which have only missed
two payments.
(7) Book value per share represents stockholders' equity divided by
outstanding shares, excluding unallocated Employee Stock Ownership
Plan, or ESOP, shares.
(8) Tangible book value per share represents stockholders' equity less
goodwill divided by outstanding shares, excluding unallocated ESOP
shares.
(9) Tangible assets represent assets less goodwill.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Three Months Ended September 30,
2007
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $11,171,094 $150,645 5.39 %
Multi-family, commercial
real estate and construction 4,154,097 63,052 6.07
Consumer and other loans (1) 384,019 7,472 7.78
Total loans 15,709,210 221,169 5.63
Mortgage-backed and other
securities (2) 4,711,162 53,227 4.52
Repurchase agreements 25,631 337 5.26
Federal Home Loan Bank stock 166,938 2,899 6.95
Total interest-earning assets 20,612,941 277,632 5.39
Goodwill 185,151
Other non-interest-earning assets 749,522
Total assets $21,547,614
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $1,983,161 2,016 0.41
Money market 365,919 926 1.01
NOW and demand deposit 1,453,669 214 0.06
Liquid certificates of deposit 1,570,599 18,501 4.71
Total core deposits 5,373,348 21,657 1.61
Certificates of deposit 7,946,982 95,293 4.80
Total deposits 13,320,330 116,950 3.51
Borrowings 6,687,400 79,505 4.76
Total interest-bearing liabilities 20,007,730 196,455 3.93
Non-interest-bearing liabilities 345,377
Total liabilities 20,353,107
Stockholders' equity 1,194,507
Total liabilities and stockholders'
equity $21,547,614
Net interest income/net interest
rate spread $81,177 1.46 %
Net interest-earning assets/net
interest margin $605,211 1.58 %
Ratio of interest-earning assets
to interest-bearing
liabilities 1.03x
For the Three Months Ended September 30,
2006
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,952,037 $127,735 5.13 %
Multi-family, commercial
real estate and construction 4,268,318 65,933 6.18
Consumer and other loans (1) 468,436 9,099 7.77
Total loans 14,688,791 202,767 5.52
Mortgage-backed and other
securities (2) 5,774,554 64,946 4.50
Repurchase agreements 95,969 1,266 5.28
Federal Home Loan Bank stock 142,998 2,049 5.73
Total interest-earning assets 20,702,312 271,028 5.24
Goodwill 185,151
Other non-interest-earning assets 778,978
Total assets $21,666,441
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,277,608 2,309 0.41
Money market 506,959 1,281 1.01
NOW and demand deposit 1,482,642 218 0.06
Liquid certificates of deposit 1,243,914 15,184 4.88
Total core deposits 5,511,123 18,992 1.38
Certificates of deposit 7,505,903 83,111 4.43
Total deposits 13,017,026 102,103 3.14
Borrowings 7,045,962 78,258 4.44
Total interest-bearing liabilities 20,062,988 180,361 3.60
Non-interest-bearing liabilities 344,467
Total liabilities 20,407,455
Stockholders' equity 1,258,986
Total liabilities and stockholders'
equity $21,666,441
Net interest income/net interest
rate spread $90,667 1.64 %
Net interest-earning assets/net
interest margin $639,324 1.75 %
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 Nine Months Ended September 30,
2007
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,771,698 $428,729 5.31 %
Multi-family, commercial
real estate and construction 4,194,081 192,160 6.11
Consumer and other loans (1) 406,967 23,478 7.69
Total loans 15,372,746 644,367 5.59
Mortgage-backed and other
securities (2) 4,966,923 168,127 4.51
Federal funds sold and
repurchase agreements 45,772 1,812 5.28
Federal Home Loan Bank stock 156,955 8,246 7.00
Total interest-earning assets 20,542,396 822,552 5.34
Goodwill 185,151
Other non-interest-earning assets 756,862
Total assets $21,484,409
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,047,732 6,177 0.40
Money market 392,785 2,933 1.00
NOW and demand deposit 1,471,293 639 0.06
Liquid certificates of deposit 1,585,104 57,278 4.82
Total core deposits 5,496,914 67,027 1.63
Certificates of deposit 7,791,434 274,377 4.70
Total deposits 13,288,348 341,404 3.43
Borrowings 6,645,192 229,553 4.61
Total interest-bearing
liabilities 19,933,540 570,957 3.82
Non-interest-bearing liabilities 349,186
Total liabilities 20,282,726
Stockholders' equity 1,201,683
Total liabilities and stockholders'
equity $21,484,409
Net interest income/net interest
rate spread $251,595 1.52 %
Net interest-earning assets/net
interest margin $608,856 1.63 %
Ratio of interest-earning assets
to interest-bearing
liabilities 1.03x
For the Nine Months Ended September 30,
2006
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,921,036 $378,226 5.08 %
Multi-family, commercial
real estate and construction 4,192,095 192,178 6.11
Consumer and other loans (1) 488,223 26,918 7.35
Total loans 14,601,354 597,322 5.45
Mortgage-backed and other
securities (2) 6,098,527 205,373 4.49
Federal funds sold and
repurchase agreements 145,121 5,205 4.78
Federal Home Loan Bank stock 141,577 5,535 5.21
Total interest-earning assets 20,986,579 813,435 5.17
Goodwill 185,151
Other non-interest-earning assets 788,337
Total assets $21,960,067
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,380,057 7,164 0.40
Money market 563,485 4,135 0.98
NOW and demand deposit 1,512,951 662 0.06
Liquid certificates of deposit 981,897 32,636 4.43
Total core deposits 5,438,390 44,597 1.09
Certificates of deposit 7,513,758 230,760 4.09
Total deposits 12,952,148 275,357 2.83
Borrowings 7,375,315 234,549 4.24
Total interest-bearing
liabilities 20,327,463 509,906 3.34
Non-interest-bearing liabilities 345,408
Total liabilities 20,672,871
Stockholders' equity 1,287,196
Total liabilities and stockholders'
equity $21,960,067
Net interest income/net interest
rate spread $303,529 1.83 %
Net interest-earning assets/net
interest margin $659,116 1.93 %
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 September 30, 2007 At June 30, 2007 At September 30, 2006
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 $11,349,658 5.65% $10,909,568 5.58% $ 9,931,184 5.40%
Multi-family,
commercial
real estate
and
construction 4,122,709 5.93 4,179,772 5.94 4,268,679 5.96
Mortgage-backed
and other
securities (3) 4,568,579 4.33 4,787,635 4.34 5,598,523 4.34
Interest-bearing
liabilities:
Savings 1,940,322 0.40 2,025,132 0.40 2,209,535 0.40
Money market 352,858 1.01 377,455 1.00 478,932 1.00
NOW and demand
deposit 1,442,840 0.06 1,489,624 0.06 1,466,725 0.06
Liquid
certificates
of
deposit 1,463,845 4.46 1,664,176 4.83 1,402,562 5.05
Total core
deposits 5,199,865 1.49 5,556,387 1.68 5,557,754 1.54
Certificates
of
deposit 8,066,130 4.80 7,891,469 4.76 7,619,252 4.54
Total
deposits 13,265,995 3.50 13,447,856 3.49 13,177,006 3.27
Borrowings,
net 6,929,500 4.68 6,698,342 4.62 6,824,359 4.38
(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 Nine Months Ended
September 30, 2006
GAAP Adjustments(4) Non-GAAP
Net interest income after
provision for loan losses $ 303,529 $ - $ 303,529
Non-interest income 67,488 5,456 72,944
Non-interest expense 164,843 - 164,843
Income before income tax 206,174 5,456 211,630
Income tax expense 68,383 1,810 70,193
Net income $ 137,791 $ 3,646 $ 141,437
Basic earnings per common share $1.44 $0.04 $1.48
Diluted earnings per common share $1.40 $0.04 $1.44
(4) Adjustments relate to the $5.5 million charge for the termination of
our interest rate swap agreements and the related tax effects.
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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