Investor Presentation
Fourth Quarter Ended
December 31, 2007
www.astoriafederal.com
Forward Looking Statement
This presentation may contain 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. 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 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
• $16.2 billion in loans
$13.0 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 December 31, 2007, except as noted.
* Source: Institutional Shareholder Services (ISS) as of January 1, 2008
3
Dividend Growth
CAGR = 23%
* 1Q08 annualized; 4.19% yield, as of January 30, 2008
4
Cumulative Cash Returned to Shareholders
(In Millions)
$110
$159
$368
$846
$1,121
$501
$2.5 billion returned to shareholders in the past 11 years
$1,382
$1,679
$1,941
$2,284
$2,460
* 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
3.0M
92.3M*
Average Price:
$12.85
$16.31
$12.48
$10.81
$18.70
$19.32
$18.42
$24.82
$27.49
$29.92
$26.64
$19.27
Stock Performance - Comparative Total Return
Comparative returns from November 30, 1993 – December 31, 2007 (IPO 11/18/93)
AF CAGR = 15%
6
(In Billions)
12/31/99 12/31/07
Loans
Securities
12/31/99 12/31/07
Deposits
Borrowings
vs.
Assets
Liabilities
12/31/99 12/31/07
12/31/99 12/31/07
vs.
Focus on Core Business
(In Billions)
(In Billions)
7
Total Assets: $22,696,536
At December 31, 1999
Assets
Assets
Liabilities & Shareholders’ Equity
Liabilities & Shareholders’ Equity
Total Assets: $21,719,368
At December 31, 2007
Improving Balance Sheet Quality
($ in thousands)
($ in thousands)
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
Average loan amount for 2007 production = $550,000
Average LTV on 2007 production = 65%
Multiple delivery channels provide flexibility & efficiency
Retail*
Commissioned brokers covering 22 states*
Third party originators – correspondents covering 29 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.
11
Geographic Composition of 1-4 Family Loan Portfolio
At December 31, 2007
Total 1-4 Family Loan Portfolio
$11.6 Billion
Virginia
8%
Massachusetts
7%
Maryland
7%
12
By Product Type
$4.5B
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$3.8B
1-4 Family Mortgage Loan Originations
13
Net portfolio growth:
($895.7) M
($238.3) M
+$83.7 M
+$703.2 M
+$456.2 M
+$1.4 B
Weighted Avg. Portfolio
Coupon at Period End
6.33%
5.26%
5.05%
5.19%
5.48%
5.70%
Fewer participants
Lending standards further tightened
Spreads widening
Volumes increasing
Mortgage Banking Dislocation:
Positive Implications for Jumbo Mtge. Portfolio Lenders
14
Solid Multifamily/CRE portfolio
$4.0 billion in portfolio
Weighted Average Coupon at December 31, 2007: 5.87%
Conservative underwriting
– 2007 production
Weighted average LTV = 65% at origination
Average loan amount = $1.3 million
– Total portfolio
Weighted average LTV < 65%*
Average loan < $1 million
Approximately 75% of multifamily portfolio is subject
to rent control or rent stabilization
Multifamily/Commercial Real Estate Lending
* Based on current principal balances and original appraised values.
15
• Limited credit risk
Conservative underwriting, top quality loans, low LTVs
No sub-prime or payment option ARM lending
Non-performing assets: $115.4 million or 0.53% of total assets*
No geographic concentration of NPLs
Charge-offs of just 2 basis points of average loans in 2007
• Top quality MBS portfolio
Primarily GSE, agency or ‘AAA’ rated
Asset Quality Focus
* Includes $38 million of loans, or 33% of NPAs, that have only missed two payments.
16
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
17
• One year gap: -24%
• 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
18
$13.0 billion in deposits, 86 banking office network
Serving the Long Island market since 1888
• Low cost/stable source of funds – average cost: 3.51%*
• $12.1 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 $151 Million
Westchester Offices (3) – Average Deposits of $175 Million
• Alternative delivery channels
ATM’s, telephone and Internet banking
* For the quarter ended December 31, 2007.
Leading Retail Banking Franchise
19
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
20
Source: FDIC Summary of Deposits, SNL Financial. Data as of June 30, 2007. Data includes 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: $56,704
Well Positioned in Each of Our Key Markets
21
($ 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: $83,592
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2007.
The combined population of these four counties (7.7 million) exceeds the population of 38 individual U.S. states
Strong Position in Core Market
(1) 2006 & 2007 deposits have been adjusted to include the effect of merger and acquisition activity and pending transactions.
22
($ 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
$95
Deposits
(1)
Branches
# of
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2007.
Market Share Trend 1999 - 2007
(1) 1999 & 2007 deposits adjusted to include the effect of merger and acquisition activity and pending transactions.
23
($ 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
24
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
25
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
26
• 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
27
* 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 December 31, 2007
Total - $13.0 Billion
*Retail CDs: $7.9B
Rate: 4.79%
Money Market: $0.3B
Rate: 0.98%
Savings: $1.9B
Rate: 0.40%
*Liquid CDs: $1.4B
Rate: 4.40%
Now/Demand: $1.5B
Rate: 0.06%
Core Community Deposits
28
* Most recent data available for All US Thrifts and NY Thrifts is for the quarter ended September 30, 2007. AF is for the twelve months
ended December 31, 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)
29
Long Island Savings Bank Claim
– On December 28, 2007, the U.S. Court of Appeal for the Federal Circuit
denied both Astoria’s petition for a panel rehearing and a rehearing en
banc and upheld the Court’s most recent opinion which reversed
Astoria’s award of $435.8 million. Management is carefully reviewing its
options with respect to any further legal action that may be taken in this
matter.
Fidelity NY Claim
– On January 8, 2008, the U.S. Court of Federal Claims awarded Astoria
$16.0 million in damages. AF anticipates that the U.S. government,
given its practice in similar cases, may file an appeal. If so, no
assurance can be given as to the timing, content or ultimate outcome of
the appeal.
Goodwill Claims - Update
30
We anticipate the yield curve will remain positively sloped and steepen
further in 2008 which should result in improved opportunities for earnings
growth and an expansion of our net interest margin.
Strategies
• Remain focused
Grow loans, deposits and earnings assets
Capitalize on mortgage banking dislocation
Lending standards further tightened
Maintain pricing discipline
Use low-cost long-term borrowings opportunistically
• 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 2008
31
Strong balance sheet – strong 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
23% compounded annual growth in dividend*
$2.5 billion returned to shareholders in the past 11 years
* CAGR from 1995, commencement of quarterly dividend, to 1Q08 annualized
Investment Merits
32
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
EVP, Treasurer & 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
34
December 31, 2007
Shares Outstanding: 95,728,562
Ownership Profile
35
(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
36
By Delivery Channel
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$3.8B
1-4 Family Mortgage Loan Originations
37
At December 31, 2007
Total Multifamily/CRE Portfolio
$4.0 Billion
New York,
New Jersey,
Connecticut
92%
Geographic Composition of Multifamily/CRE Portfolio Loans
38
Non-Performing Asset
-
NPA
Non-Performing Loan
-
NPL
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
