Investor Presentation
Third Quarter Ended
September 30, 2007
www.astoriafederal.com
Forward Looking Statement
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 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 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 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.
2
NYSE: AF
Corporate Profile
$21.7 billion in assets
• $16.0 billion in loans
$13.3 billion in deposits
8.4% deposit market share in Long Island market
– Largest thrift depository
Insider & ESOP stock ownership: 21%
Corporate Governance: AF outperformed 97% of all banks in
the S&P Banks industry group *
Solid and seasoned management team
14 years as a public company – enhancing shareholder value
All figures in this presentation are as of September 30, 2007, except as noted.
* Source: Institutional Shareholder Services (ISS) as of October 1, 2007
3
Dividend Growth
CAGR = 26%
* 4Q07 annualized; 4.00% yield, as of October 31, 2007
4
Cumulative Cash Returned to Shareholders
(In Millions)
$110
$159
$368
$846
$1,121
$501
Over $2.4 billion returned to shareholders in the past 10+ years
$1,382
$1,679
$1,941
$2,284
$2,423
* Amount does not cross foot due to rounding
5
Shares
TOTAL
Repurchased:
6.7M
1.0M
12.8M
7.8M
15.5M
10.9M
10.6M
9.1M
6.6M
8.4M
2.5M
91.8M*
Average Price:
$12.85
$16.31
$12.48
$10.81
$18.70
$19.32
$18.42
$24.82
$27.49
$29.92
$26.95
$19.24
Stock Performance - Comparative Total Return
Comparative returns from November 30, 1993 – September 30, 2007 (IPO 11/18/93)
AF CAGR = 16%
6
(In Billions)
12/31/99 09/30/07
Loans
Securities
12/31/99 09/30/07
Deposits
Borrowings
vs.
Assets
Liabilities
12/31/99 09/30/07
12/31/99 09/30/07
vs.
Focus on Core Business
7
Total Assets: $22,696,536
At December 31, 1999
Assets
Assets
Liabilities & Shareholders’ Equity
Liabilities & Shareholders’ Equity
Total Assets: $21,746,102
At September 30, 2007
Improving Balance Sheet Quality
8
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
Formula for Enhancing Shareholder Value
9
Primarily short-term, 5/1 jumbo prime hybrid ARMs for portfolio
Minimizes interest rate risk
Multiple delivery channels provide flexibility & efficiency
Retail*
Commissioned brokers covering 24 states*
Third party originators – correspondents covering 41 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.
10
Geographic Composition of 1-4 Family Loan Portfolio
At September 30, 2007
Total 1-4 Family Loan Portfolio
$11.3 Billion
Virginia
9%
Massachusetts
7%
Maryland
7%
11
By Product Type
$4.5B
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$3.0B
1-4 Family Mortgage Loan Originations
12
Net portfolio growth:
($895.7) M
($238.3) M
+$83.7 M
+$703.2 M
+$456.2 M
+$1.1 B
Weighted Avg. Portfolio
Coupon at Period End
6.33%
5.26%
5.05%
5.19%
5.48%
5.65%
Fewer participants
Lending standards further tightened
Spreads widening
Volumes increasing
Mortgage Banking Dislocation:
Positive Implications for Jumbo Mtge. Portfolio Lenders
13
Solid Multifamily/CRE portfolio
$4.0 billion in portfolio
Weighted Average Coupon at September 30, 2007: 5.86%
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.
Multifamily/Commercial Real Estate Lending
15
• Limited credit risk
Conservative underwriting, top quality loans, low LTVs
No sub-prime or payment option ARM lending
Non-performing assets: 0.40% of total assets
• Top quality MBS portfolio
Primarily GSE, agency or ‘AAA’ rated
Asset Quality Focus
16
• One year gap: -21.5%
• 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
Borrowings – as needed
Interest Rate Risk Management
17
$13.3 billion in deposits, 86 banking office network
Serving the Long Island market since 1888
• Low cost/stable source of funds – average cost: 3.51%*
• $12.3 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 $153 Million
Westchester Offices (3) – Average Deposits of $178 Million
• Alternative delivery channels
ATM’s, telephone and Internet banking
* For the quarter ended September 30, 2007.
Leading Retail Banking Franchise
18
Nassau
Queens
Brooklyn
Suffolk
Banking Offices and Deposit Share Ranking on Long Island
Overall Deposit Share Ranking:
#1- all thrifts, #4- all financial institutions
Long Island Powerhouse
19
Source: FDIC Summary of Deposits, SNL Financial. Data as of June 30, 2007. Deposits include merger and acquisition activity and pending transactions.
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
U.S. Median HHI: $53,154 / NY State Median HHI: $56,704
Well Positioned in Each of Our Key Markets
20
($ in millions)
Nassau
($ in millions)
Queens
Institution
Deposits
Branches
Institution
Deposits
1
Chase
$8,151
16
%
85
1
Chase
$7,451
19
%
67
2
Capital One/North Fork
6,578
13
60
2
Citigroup
5,046
13
29
3
Citigroup
6,552
13
54
3
Capital One/North Fork
4,766
12
51
4
Astoria
5,122
10
29
4
Astoria
3,167
8
17
5
NY Community
4,684
9
37
5
NY Community
2,971
7
45
Nassau Total
$50,739
486
Queens Total
$39,710
418
($ in millions)
Suffolk
($ in millions)
Brooklyn
Institution
Deposits
Institution
Deposits
1
Capital One/North Fork
$7,262
22
%
63
1
Chase
$6,651
21
%
46
2
Chase
6,330
19
78
2
Citigroup
4,130
13
25
3
Astoria
3,201
10
25
3
WaMu
3,572
11
33
4
WaMu
2,741
8
36
4
HSBC
3,550
11
27
5
Citigroup
2,639
8
28
5
Cap One/North Fork
2,814
9
28
Suffolk Total
$33,425
421
Astoria (#7)
1,609
5
12
Brooklyn Total
$32,438
314
Branches
Branches
Share
Share
Share
Share
Branches
Median household income: $42,491
Median household income: $95,477
Median household income: $55,921
Median household income: $83,592
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2007.
The combined population of these four counties (7.7 million) exceeds the population of 38 individual U.S. states
Strong Position in Core Market
(1) 2006 & 2007 deposits have been adjusted to include the effect of merger and acquisition activity and pending transactions.
21
($ in millions)
Average
June 07/06
Market
Deposits
Institution
Growth
(1)
Share
Per Branch
1
Chase
$
28,583
$
(43)
18.3
%
276
$104
2
Capital One/North Fork
21,420
(1,346)
13.7
202
106
3
Citibank
18,367
1,473
11.8
136
135
4
ASTORIA*
13,098
312
8.4
83
158
5
Washington Mutual
11,343
373
7.3
136
83
6
NY Community
10,420
(490)
6.7
128
81
7
HSBC
9,956
91
6.4
93
107
8
Commerce
6,036
1,079
3.9
57
106
9
Bank of America
5,250
213
3.4
117
45
10
Sovereign
3,510
(1,668)
2.3
36
98
Total - Top 10
$
127,983
$
(6)
81.9
%
1,264
$101
Total - Core Market
$
156,311
$
3,052
100.0
%
1,639
$95
Deposits
(1)
Branches
# of
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2007.
Market Share Trend 1999 - 2007
(1) 1999 deposits and number of branches have been adjusted to include the effect of merger and acquisition activity and pending transactions.
22
($ in millions)
June 07
June 99-07
June 99-07
June 2007
June 99-07
Market
Market Share
Change in #
Institution
Deposits
(1)
$
Growth
(1)
%
Share
Gain/Loss
of Branches
1
Commerce
$
6,036
$
6,036
100.0
%
3.9
%
3.9
%
57
2
Chase
28,583
9,653
51.0
18.3
1.3
(4)
3
ASTORIA*
13,098
3,904
42.5
8.4
0.1
(1)
4
NY Community
10,420
2,377
29.6
6.7
(0.5)
28
5
Citibank
18,367
4,526
32.7
11.8
(0.6)
(21)
6
Sovereign
3,510
335
10.6
2.3
(0.6)
7
7
Washington Mutual
11,343
2,153
23.4
7.3
(1.0)
58
8
HSBC
9,956
1,425
16.7
6.4
(1.3)
(7)
9
Capital One/North Fork
21,420
4,043
23.3
13.7
(1.9)
7
10
Bank of America
5,250
(2,688)
(33.9)
3.4
(3.7)
(7)
Total - Top 10
$
127,983
$
31,764
33.0
%
81.9
%
(4.5)
%
+ 117
Total - Core Market
$
156,311
$
44,968
40.4
%
100.0
%
+ 255
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
Retail Banking
23
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
Sales – PEAK Process
24
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
25
• 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 1,000 community-based organizations supported annually
• Results/Recognition
Six consecutive “Outstanding” Community Reinvestment Act ratings by
OTS
Astoria Federal: An integral part of the fabric of the communities we serve
Community Involvement
Key Initiatives
26
* 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.
At September 30, 2007
Total - $13.3 Billion
*Retail CDs: $8.1B
Rate: 4.80%
Money Market: $0.4B
Rate: 1.01%
Savings: $1.9B
Rate: 0.40%
*Liquid CDs: $1.5B
Rate: 4.46%
Now/Demand: $1.4B
Rate: 0.06%
Core Community Deposits
27
* Most recent data available for All US Thrifts and NY Thrifts is for the quarter ended June 30, 2007. AF is annualized for the nine
months ended September 30, 2007.
Source: SNL Financial – Median Ratios
(1) G&A expense ratio represents general and administrative expense divided by average assets.
G&A Expense Ratio(1)
28
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. Acting en banc, the Court
returned the case to the original three judge panel. On September 13, 2007,
the panel withdrew and vacated its earlier decision and rendered a new
opinion. The new opinion also reversed AF’s award of $436 million. AF has
again filed with the court a petition for rehearing or rehearing en banc.
Remaining goodwill litigation claim
– $160 million of original supervisory goodwill created by
Fidelity NY
– Trial commenced on April 19, 2007 before the U.S. Court of
Federal Claims
– Evidentiary phase has been concluded. Post trial motions and closing
arguments are expected to be concluded in the fourth quarter of 2007
Goodwill Claims - Update
29
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
Strategies
• Remain focused
Grow loans, deposits and earning assets
Capitalize on mortgage banking dislocation
Lending standards further tightened
Maintain pricing discipline
Reduce securities
• Maintain superior operating efficiency
• Continue buying back AF stock, maintaining tangible capital levels
between 4.50% and 4.75%
Objective: Produce solid returns
Outlook for remainder of 2007 & 2008
30
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 $2.4 billion returned to shareholders in the past 10+
years
* CAGR from 1995, commencement of quarterly dividend, to 4Q07 annualized
Investment Merits
31
AF: A Record of Enhancing Shareholder Value
Addendum
Addendum
35
67
Support Services
Arnold K. Greenberg
Executive Vice President
26
54
Legal
Alan P. Eggleston
EVP, Secretary & General Counsel
31
54
Mortgage Lending
Gary T. McCann
Executive Vice President
37
61
Retail Banking
Gerard C. Keegan
Vice Chairman & CAO
18
44
Chief Financial Officer
Frank E. Fusco
Executive Vice President & CFO
33
57
Chief Operating Officer
Monte N. Redman
President & COO
36
69
Chief Executive Officer
George L. Engelke, Jr.
Chairman & CEO
Yrs. in
Banking
Age
Responsibility
Solid and Seasoned Management Team
33
September 30, 2007
Shares Outstanding: 96,203,234
Ownership Profile
34
(1) Branches sold in 1999
(2) One satellite office closed in 1997
$11,590
86
TOTAL
6,600
35
Long Island Bancorp, Inc.
1998
2,400
14
The Greater NY Savings Bank
1997
1,800
18
Fidelity New York (2)
1995
280
4
Whitestone Savings (RTC)
1990
205
4
Oneonta Federal (1)
1987
25
1
Chenango Federal (1)
1984
100
3
Hastings-on-Hudson Federal
1982
130
5
Citizens Savings (FSLIC)
1979
$ 50
2
Metropolitan Federal
1973
Assets
# Branches
Thrift
Year
(in millions)
Acquisition History
35
Source: MBA National Delinquency Survey. Beginning with 3Q02, MBA statistics for conventional loans excludes sub-prime loans.
1-4 Family Delinquency Ratios: AF vs. MBA
36
By Delivery Channel
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$3.0B
1-4 Family Mortgage Loan Originations
37
At September 30, 2007
Total Multifamily/CRE Portfolio
$4.0 Billion
New York,
New Jersey,
Connecticut
92%
Geographic Composition of Multifamily/CRE Portfolio Loans
38
Mortgage Bankers Association
-
MBA
Office of Thrift Supervision
-
OTS
Mortgage-Backed Securities
-
MBS
Loan-To-Value Ratio
-
LTV
Institutional Shareholder Services
-
ISS
Compounded Annual Growth Rate
-
CAGR
Government Sponsored Enterprise
-
GSE
Employee Stock Ownership Plan
-
ESOP
Commercial Real Estate
-
CRE
Adjustable Rate Mortgage
-
ARM
Glossary
39
www.astoriafederal.com
