Long Island’s Premier Community Bank
www.astoriafederal.com
Investor Presentation
First Quarter Ended
March 31, 2007
This presentation may contain forward-looking statements that 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 it believes
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 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; legislation or regulatory changes may adversely affect
our business; 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 other matters before regulatory agencies, whether currently existing or
commencing in the future, may be determined adverse to us or may delay 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.
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Corporate Profile
$21.4 billion in assets
• $15.1 billion in loans
$13.4 billion in deposits
8.3% deposit market share in Long Island market
– Largest thrift depository
Insider & ESOP stock ownership: 21%
Corporate Governance: AF outperformed 98.8% of all
banks in the S&P Banks industry group *
$2.6 billion market cap
13+ years as a public company – enhancing shareholder
value
All figures in this presentation are as of March 31, 2007 and all stock market data is as of May 1, 2007, except as noted.
* Source: Institutional Shareholder Services (ISS)
NYSE: AF
3
Dividend Growth
CAGR = 26%
* 2Q07 annualized; yielding 3.91%, as of May 1, 2007
4
Cumulative Cash Returned to Shareholders
(In Millions)
$110
$159
$368
$846
$1,121
$501
Over $2.3 billion returned to shareholders in the past 10+ years
$1,382
$1,679
Shares Repurchased: 6.7M 1.0M 12.8M 7.8M 15.5M 10.9M 10.6M 9.1M 6.6M 8.4M 1.0M
Average Price: $12.85 $16.31 $12.48 $10.81 $18.70 $19.32 $18.42 $24.82 $27.49 $29.92 $28.35
$1,941
$2,284
$2,337
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1Q07 Financial Highlights
Deposits increased $198 million, or 6% annualized
Loan portfolio increased $124 million, or 3% annualized
- - One-to-four family loan portfolio increased $156 million,
or 6% annualized, to $10.4 billion
Securities portfolio decreased $252 million, or 19%
annualized
Borrowings decreased $440 million, or 26% annualized
Repurchased 1.0 million shares
6
Stock Performance - Comparative Ten Year Total Return
AF CAGR = 11%
Comparative returns from March 31, 1997 – March 31, 2007
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Focus on Core Business
(In Billions)
12/31/99 03/31/07
Loans
Securities
12/31/99 03/31/07
Deposits
Borrowings
vs.
Assets
Liabilities
12/31/99 03/31/07
12/31/99 03/31/07
vs.
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Improving Balance Sheet Quality
Total Assets: 21,393,867
Total Assets: $22,696,536
At December 31, 1999
At March 31, 2007
Assets
Assets
Liabilities & Shareholders’ Equity
Liabilities & Shareholders’ Equity
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A Simple Formula for Enhancing Shareholder Value
EFFICIENCY
MORTGAGE LENDING
• Portfolio lender, not a mtge. banker
• 1-4 Family, Multi-Family and
Commercial R.E. expertise
• Superior asset quality
RETAIL BANKING
• Premier community bank on
Long Island
• Dominant deposit market share
• #1 thrift depository in core market
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Primarily short-term, 5/1 hybrid ARMs for portfolio
Minimizes interest rate risk
Multiple delivery channels provide flexibility & efficiency
Retail*
Commissioned brokers covering 26 states*
Third party originators – correspondents covering 43 states*
Secondary marketing capability
Sale of 15 year and 30 year fixed rate loans reduces interest rate risk
Geographically diversified portfolio
Reduces lending concentrations
1-4 Family Mortgage Lending
* All loans underwritten to Astoria’s stringent standards. Broker and correspondent networks also include D.C.
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Geographic Composition of 1-4 Family Loan Portfolio
At March 31, 2007
Total 1-4 Family Loan Portfolio
$10.4 Billion
Virginia
9%
Massachusetts
7%
Maryland
8%
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1-4 Family Mortgage Loan Originations
By Product Type
$3.9B
$4.5B
(In Billions)
$5.6B
Net portfolio growth: +$254.7 M ($895.7) M ($238.3) M +$83.7 M +$703.2 M +$456.2 M +$156.2 M
Weighted Avg. Portfolio
Coupon at Period End 7.01% 6.33% 5.26% 5.05% 5.19% 5.48% 5.51%
$3.2B
$3.3B
$2.7B
$0.76B
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Multifamily/Commercial Real Estate Lending
• Solid and growing Multifamily/CRE portfolio
$4.1 billion in portfolio
Weighted Average Coupon at March 31, 2007: 5.84%
Conservative underwriting
– Weighted average LTV of portfolio < 65%
Average loan in portfolio < $1 million
Approximately 85% of multifamily portfolio is subject
to rent control or rent stabilization
Note: LTV is based on current principal balances and original appraised values.
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Multifamily/CRE Portfolio Growth
(In Billions)
% of total loans 20% 25% 27% 27% 27% 27%
$2.3
$3.1
Average loan balance outstanding is < $1 million.
$3.5
$3.9
$4.1
$4.1
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Asset Quality Focus
• Limited credit risk
Conservative underwriting, top quality loans, low LTVs
No sub-prime or payment option ARM lending
• Strong reserves
Non-performing assets: 0.32% of total assets
Allowance for loan losses/non-performing loans: 118%
• Top quality MBS portfolio
Primarily GSE, agency or ‘AAA’ rated
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• One year gap: -16.18%
• Key balance sheet components
Short-term hybrid adjustable-rate mortgage loan portfolio
Short weighted average life MBS portfolio
Offset by:
Large, low-cost checking, savings and money market deposit
base – provides natural hedge against rising rates
Longer-term CDs
Over the past twelve months, $1.4 billion of non-callable CDs
with maturities of 18 months or greater were issued or repriced
with a weighted average rate of 5.12% and a weighted average
original maturity of 27 months
Borrowings – as needed
Interest Rate Risk Management
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Leading Retail Banking Franchise
$13.4 billion in deposits, 86 banking office network
Serving the Long Island market since 1888
• Low cost/stable source of funds – average cost: 3.34%*
• $12.5 billion, or 93%, of total deposits emanate from within
5 miles of a branch
• Banking offices with high average deposits contribute to
efficiency
Long Island Offices (83) – Nassau (29), Queens (17), Suffolk (25),
Brooklyn (12) – Average Deposits of $155 Million
Westchester Offices (3) – Average Deposits of $178 Million
• Alternative delivery channels
ATM’s, telephone and Internet banking
* Average cost for the quarter ended March 31, 2007.
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Long Island Powerhouse
Nassau
Queens
Brooklyn
Suffolk
Banking Offices and Deposit Share Ranking on Long Island
Overall Deposit Share Ranking:
#1- all thrifts, #4- all financial institutions
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($ in millions) Brooklyn
Institution Total Share Branches
1. Chase $6,736 21% 44
2. Citigroup 3,793 12 25
3. Sovereign 3,659 11 21
4. WaMu 3,531 11 29
5. HSBC 3,512 11 27
Astoria (#7) 1,616 5 12
Total $32,800 292
($ in millions) Suffolk
Institution Total Share Branches
1. Capital One/North Fork $8,796 26% 63
2. Chase 6,474 19 80
3. Astoria 3,070 9 25
4. WaMu 2,643 8 36
5. Citigroup 2,446 7 28
Total $33,690 418
($ in millions) Queens .
Institution Total Share Branches
1. Chase $7,200 19% 65
2. Capital One/North Fork 4,723 13 51
3. Citigroup 4,609 12 29
4. Astoria 3,158 8 17
5. NY Community 2,882 8 39
Total $37,527 396
($ in millions) Nassau ..
Institution Total Share Branches
1. Chase $8,217 17% 82
2. Capital One/North Fork 6,479 13 59
3. Citigroup 6,045 12 54
4. NY Community 5,506 11 38
5. Astoria 4,942 10 29
Total $49,243 468
Well Positioned in Each of Our Key Markets
Source: FDIC Summary of Deposits, SNL Financial. Data as of June 30, 2006. Includes completed transactions.
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Deposits
Median household income: $90,227
Median household income: $53,531
U.S. Median HHI: $51,546 / NY State Median HHI: $54,403
Median household income: $81,248
Median household income: $40,311
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Strong Position in Core Market
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2006.
The combined population of these four counties (7.6 million) exceeds the population of 38 individual U.S. states
(Dollars in millions) June 06/05 Market Average
Institution Deposits Growth Share Branches Deposits
1. Chase $ 28,626 $ 1,170 18.7% 271 $106
2. Capital One/North Fork 22,766 (1,723) 14.9 201 113
3. Citibank 16,894 527 11.0 136 124
4. ASTORIA * 12,786 453 8.3 83 154
5. Washington Mutual 10,970 257 7.2 127 86
6. NY Community 10,665 326 7.0 121 88
7. HSBC 9,865 476 6.4 93 106
8. Sovereign 5,178 476 3.4 38 136
9. Bank of America 5,037 (436) 3.3 112 45
10. Commerce 4,957 1,923 3.2 48 103
Total – Top 10 $127,744 $ 3,449 83.4% 1,230 104
Total - Core Market $153,259 $ 5,214 100.0% 1,574 97
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June 2006 June 99-06 June 99-06
(Dollars in millions) June 2006 June 99-06 Market Market Share Change in #
Institution Deposits $ Growth % Share Gain/Loss of Branches
1. Chase $28,626 $ 9,696 51.2% 18.7% 1.7% - 9
2. Capital One/North Fork 22,766 5,389 31.0 14.9 (0.7) + 6
3. Commerce 4,957 4,957 3.2 3.2 + 48
4. ASTORIA * 12,786 3,592 39.1 8.3 0.0 - 1
5. Citibank 16,894 3,053 22.1 11.0 (1.4) - 21
6. NY Community 10,665 2,623 32.6 7.0 (0.2) + 21
7. Sovereign 5,178 2,003 63.1 3.4 0.5 + 9
8. Washington Mutual 10,970 1,780 19.4 7.2 (1.1) + 49
9. HSBC 9,865 1,334 15.6 6.4 (1.3) - 7
10. Bank of America 5,037 (2,901) (36.5) 3.3 (3.8) - 12
Total - Top 10 $127,744 $31,526 32.8% 83.4% (3.1) + 83
Total - Core Market $ 153,259 $41,916 37.6% 100.0% +190
Market Share Trend – 1999 - 2006
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2006.
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Retail Banking
Acquisition with organic growth vs. de-novo branching
Differentiation from competition
– Maintain pricing discipline
– Pro-active sales culture
– Focus on customer service
– Strong support of local community-based organizations
and activities
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Sales – PEAK Process
Performance based on Enthusiasm, A ctions and Knowledge
“Sales Oriented and Service Obsessed”
A “needs” based approach to sales rather than “product”
based approach
Highly interactive program – daily and weekly meetings
create a focus that is shared throughout the branch network
Incentives for strong performance, both individual and team
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Key Findings : Favorably Positioned Against Competitors
71% of Astoria customers are highly satisfied
71% of Astoria customers are highly likely to recommend
Astoria to friend/family member
• Astoria customers are 22% more likely to net increase their
deposit relationship than are competitor customers.
Satisfaction with the branch is by far the strongest driver of
overall satisfaction – 86% of Astoria customers are highly
satisfied with quality of branch service
Customer Satisfaction
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Community Involvement
Key Initiatives
• Education First
Supports lifelong learning, promotes savings and provides meaningful
financial solutions to improve the way our customers live
• Neighborhood Outreach
Supports local organizations that enrich the communities within our market
area
Nearly 1000 community-based organizations supported annually
• Results/Recognition
Five consecutive “Outstanding” Community Reinvestment Act ratings by
OTS
Astoria Federal: An integral part of the fabric of the communities we serve
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Total - $13.4 Billion
At March 31, 2007
*Retail CDs: $7.8B
Rate: 4.71%
Money Market: $0.4B
Rate: 1.00%
Savings: $2.1B
Rate: 0.40%
*Liquid CDs: $1.6B
Rate: 4.93%
Now/Demand: $1.5B
Rate: 0.06%
Core Community Deposits
* Note: 58% of the households that have a retail CD or Liquid CD account also have a low
cost checking, savings or money market account relationship.
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G&A Expense Ratio(1)
* Most recent data available for All US Thrifts and NY Thrifts is for the year ended December 31, 2006. AF is for the three months
ended March 31, 2007.
Source: SNL Financial – Median Ratios
(1) G&A expense ratio represents general and administrative expense divided by average assets.
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U.S. Court of Appeals for the Federal Circuit reversed AF
award of $436 million on February 1, 2007 in the LISB case
– AF filed a petition for rehearing or rehearing en banc on
April 2, 2007 with the U.S. Court of Appeals for the Federal
Circuit
Remaining goodwill litigation claim
$160 million of original supervisory goodwill created by
Fidelity NY - $135 million written off
Trial commenced on April 19, 2007 before the U.S. Court of
Federal Claims
Goodwill Claims - Update
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Challenges
Inverted U.S. Treasury yield curve
Anticipated gradual flattening of the yield curve in the latter half of 2007
and into 2008 may result in modest net interest margin compression
continuing with a full year 2007 estimate of approximately 1.63%
Strategies
Remain focused
Grow loans and deposits
Maintain credit standards
Maintain pricing discipline
Reduce securities
• Maintain superior operating efficiency
Continue buying back AF stock, maintaining tangible capital
levels at or near 4.75%
Objective: Produce solid returns
2007 Outlook
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Investment Merits
• Strong balance sheet – superior asset quality
Attractive banking franchise
Dominant deposit market share in core market
Superior operating efficiency
Well capitalized
Proactive Capital Management
Stock repurchase program in place
26% compounded annual growth in dividend*
Over $2.3 billion returned to shareholders in the past 10+
years
* CAGR from 1995, commencement of quarterly dividend, to 2Q07 annualized
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AF: A Record of Enhancing Shareholder Value
Addendum
Ownership Profile
March 31, 2007
Shares Outstanding: 97,477,001
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Acquisition History
Year Thrift # Branches Assets
(in millions)
1973 Metropolitan Federal 2 $ 50
1979 Citizens Savings (FSLIC) 5 130
1982 Hastings-on-Hudson Federal 3 100
1984 Chenango Federal (1) 1 25
1987 Oneonta Federal (1) 4 205
1990 Whitestone Savings (RTC) 4 280
1995 Fidelity New York (2) 18 1,800
1997 The Greater NY Savings Bank 14 2,400
1998 Long Island Bancorp, Inc. 35 6,600
Total &nb sp; 86 $11,590
(1) Branches sold in 1999
(2) One satellite office closed in 1997
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1-4 Family Delinquency Ratios: AF vs. MBA
Source: MBA National Delinquency Survey. Beginning with 3Q02, MBA statistics for conventional loans excludes sub-prime loans.
35
1- 4 Family Mortgage Loan Originations
By Delivery Channel
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$.076B
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Geographic Composition of 1- 4 Family Loan Originations
Total 1-4 Family Originations: $760 Million
For the quarter ended March 31, 2007
Excludes home equity
Other <5%
15%
Illinois
14%
Connecticut
10%
New York
22%
37
Geographic Composition of Multifamily/CRE Loan Originations
For the quarter ended March 31, 2007
Total Multifamily/CRE
Originations
$134 Million
New York,
New Jersey,
Connecticut
83%
38
Interest Rate Risk Management
CDs Issued Weighted Average Weighted Average
or Repriced* Rate Original Term
2Q06 $384.0 Million 5.07% 31 months
3Q06 $268.9 Million 5.27% 34 months
4Q06 $211.6 Million 5.08% 20 months
1Q07 $ 492.8 Million 5.09% 22 months
TOTAL $1.4 Billion 5.12% 27 months
* Non-callable CDs issued or repriced during the period with an original maturity of 18 months or greater
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Glossary
ARM – Adjustable Rate Mortgage
CAGR – Compounded Annual Growth Rate
CRE – Commercial Real Estate
ESOP – Employee Stock Ownership Plan
GSE – Government Sponsored Enterprise
ISS – Institutional Shareholder Services
LTV – Loan-To-Value ratio
MBS – Mortgage-Backed Securities
OTS – Office of Thrift Supervision
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Long Island’s Premier Community Bank
www.astoriafederal.com
