Long Island’s Premier Community Bank
www.astoriafederal.com
Investor Presentation
First Quarter Ended
March 31, 2008
1
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
$21.5 billion in assets
• $15.7 billion in loans
$13.0 billion in deposits
8.4% deposit market share in Long Island market
– Largest thrift depository
Insider & ESOP stock ownership: 22%
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 March 31, 2008, except as noted.
* Source: Institutional Shareholder Services (ISS) as of April 1, 2008
3
Dividend Growth
CAGR = 23%
* 2Q08 annualized; 4.39% yield, as of April 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
$2,491
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
0.3M
92.6M*
Average Price:
$12.85
$16.31
$12.48
$10.81
$18.70
$19.32
$18.42
$24.82
$27.49
$29.92
$26.64
$25.55
$19.29
Stock Performance - Comparative Total Return
Comparative returns from November 30, 1993 – March 31, 2008 (IPO 11/18/93)
AF CAGR = 16%
6
EFFICIENCY
MORTGAGE LENDING
• Portfolio lender,
• 1-4 Family, Multi-Family and
Commercial R.E. expertise
• Solid 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
NOT A MTGE. BANKER
7
(In Billions)
12/31/99 03/31/08
Loans
Securities
12/31/99 03/31/08
Deposits
Borrowings
vs.
Assets
Liabilities
12/31/99 03/31/08
12/31/99 03/31/08
vs.
Focus on Deposit & Loan Growth
(In Billions)
(In Billions)
8
Total Assets: $22,696,536
At December 31, 1999
Assets
Assets
Liabilities & Shareholders’ Equity
Liabilities & Shareholders’ Equity
Total Assets: $21,454,178
At March 31, 2008
Improving Balance Sheet Quality
($ in thousands)
($ in thousands)
9
Primarily short-term, 5/1 jumbo prime hybrid ARMs for portfolio
No sub-prime, negative amortization or payment option ARM lending
No payment sticker shock – our ARMs re-pricing in 2008 will reset at either 275bp over one year
CMT or 250bp over one year LIBOR, which in either case would result in a new rate about the
same or somewhat lower than their current rate
Average loan amount for first quarter 2008 production = $640,000
Average LTV on 1Q08 production = 58%
Average LTV on total 1-4 family loan portfolio = < 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
* Based on current principal balances and original appraised values.
** 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 March 31, 2008
Total 1-4 Family Loan Portfolio
$11.3 Billion
Florida 3%
11
By Product Type
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$3.8B
1-4 Family Mortgage Loan Originations
12
$0.67B
Net portfolio growth:
($238.3) M
+$83.7 M
+$703.2 M
+$456.2 M
+$1.4 B
($352.7) M
Weighted Avg. Portfolio
Coupon at Period End
5.26%
5.05%
5.19%
5.48%
5.70%
5.69%
Fewer participants
Tighter underwriting standards
Wider spreads
More volume
1-4 Family Mortgage Lending:
Positive Environment for Quality Portfolio Growth
13
Solid Multifamily/CRE portfolio
$3.9 billion in portfolio
Weighted Average Coupon at March 31, 2008: 5.87%
Conservative underwriting
– First quarter 2008 production (all NY Metro)
Weighted average LTV = 62% at origination
Average loan amount = $1.5 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.
14
• Limited credit risk
Conservative underwriting, top quality loans, low LTVs
No sub-prime, negative amortization or payment option ARM
lending
Non-performing assets: $121 million or 0.56% of total assets
No geographic concentration of NPLs
Net charge-offs of just $2.9 million in 1Q08
• Top quality MBS portfolio
Primarily GSE, agency or ‘AAA’ rated
Asset Quality Focus
15
Geographic Composition of 1- 4 Family NPLs
16
(1)
Includes New York, New Jersey and Connecticut.
(2)
Includes 29 states
At March 31, 2008
($ in millions)
Total
% of
Total
% of
1-4 Family
1-4 Family
Non-Performing
1-4 Family
1-4 Family
Non-Performing
Non-Performing
Loans as a %
State
Loans
Loans
Loans
Loans
of State Totals
New York Metro
(1)
$
4,720.6
42
%
$35.5
40
%
0.75
%
California
1,443.9
13
5.6
6
0.39
Illinois
1,164.4
10
8.4
10
0.72
Virginia
956.6
8
10.0
11
1.05
Maryland
816.7
7
11.0
12
1.35
Massachusetts
734.7
7
4.3
5
0.59
Florida
349.1
3
6.3
7
1.80
Georgia
176.4
2
1.9
2
1.08
Pennsylvania
129.6
1
1.6
2
1.23
Washington
120.2
1
--
--
--
Washington D.C.
119.4
1
0.3
--
0.25
All other states
(2)
544.0
5
3.5
5
0.64
TOTAL
$
11,275.6
100
%
$88.4
100
%
0.78
%
Source: MBA National Delinquency Survey.
1-4 Family Delinquency Ratios: AF vs. MBA
Outsourced
Mtge. Servicing
12/31/05
LI Savings Bank
Acquisition
09/30/98
17
• One year gap: -17%
Liabilities maturing over the next twelve months:
• 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
TOTAL
NEXT 12 MONTHS
4.45%
4.32%
4.91%
$9,797 M
$7,597 M
$2,200 M
3.59%
3.82%
3.00%
WAR
$714 M
$514 M
$200 M
1Q09
4.44%
4.59%
3.85%
WAR
4.40%
4.22%
5.40%
WAR*
$1,530 M
$1,230 M
$300 M
4Q08
4.76%
$2,987 M
$4,566 M
TOTAL
4.50%
$1,967 M
$3,886 M
CDs & Liquid CDs
5.27%
$1,020 M
$680 M
Borrowings
WAR
3Q08
2Q08
* Weighted Average Rate
18
Acquisition with organic growth vs. de-novo branching
Differentiation from competition
– Maintain pricing discipline
– Pro-active sales culture – PEAK Process
– Focus on customer service – High customer satisfaction
– Community involvement – Support over 600 local
organizations and not-for-profit agencies in our markets
Astoria Federal is an integral part of the fabric of the communities we serve
Retail Banking Philosophy
19
$13.0 billion in deposits, 86 banking office network
Serving the Long Island market since 1888
• Low cost/stable source of funds – average cost: 3.40%*
• $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 $150 Million
Westchester Offices (3) – Average Deposits of $174 Million
• Alternative delivery channels
ATM’s, telephone and Internet banking
* For the quarter ended March 31, 2008.
Leading Retail Banking Franchise
20
TOTAL 4 COUNTY POPULATION: 7,670,370
Source: SNL Financial LC (as of June 30, 2007)
Kings County (Brooklyn)
Population: 2,547,018
Median household income: $42,491
Deposits: $1.6 billion
Branches: 12
Market share: 5%
Rank: #3 thrift, #7 all banks
Queens County
Population: 2,279,689
Median household income: $55,921
Deposits: $3.2 billion
Branches: 17
Market share: 8%
Rank: #1 thrift, #4 all banks
Nassau County
Population: 1,337,642
Median household income: $95,477
Deposits: $5.1 billion
Branches: 29
Market share: 10%
Rank: #1 thrift, #4 all banks
Suffolk County
Population: 1,506,021
Median household income: $83,592
Deposits: $3.2 billion
Branches: 25
Market share: 10%
Rank: #1 thrift, #3 all banks
Long Island Powerhouse
Well Positioned in Key Markets
Overall LI Deposit Share Ranking:
#1- all thrifts, #4- all banks
21
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2007.
The combined population of these four counties (7.7 million) exceeds the population of 38 individual U.S. states
Strong Position in Core Market
(1)
2006 & 2007 deposits have been adjusted to include the effect of merger and acquisition activity and pending transactions.
(2)
An increase of 65 branches to the Total Core Market during the 12 months ended June 30, 2007.
22
($ 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
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
TD 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
(2)
$95
Deposits
(1)
Branches
# of
Brooklyn, Queens, Nassau and Suffolk
* Astoria’s deposits highlighted above are comprised of retail community deposits. Astoria does not solicit broker or municipal deposits.
Source: FDIC Summary of Deposits. Data as of June 30, 2007.
Market Share Trend 1999 - 2007
(1) 1999 & 2007 deposits adjusted to include the effect of merger and acquisition activity and pending transactions.
23
($ 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
TD 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
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
* Note: 59% 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 March 31, 2008
Total - $13.0 Billion
*Retail CDs: $7.9B
Rate: 4.58%
Money Market: $0.3B
Rate: 1.00%
Savings: $1.9B
Rate: 0.40%
*Liquid CDs: $1.4B
Rate: 3.42%
Now/Demand: $1.5B
Rate: 0.06%
Core Community Deposits
24
* Most recent data available for All US Thrifts and NY Thrifts is for the year ended December 31, 2007. AF is for the three months
ended March 31, 2008.
Source: SNL Financial – Median Ratios
(1) G&A expense ratio represents general and administrative expense divided by average assets.
Low Expense Ratio(1)
25
We anticipate the yield curve will remain positively sloped in 2008
providing opportunities for earnings growth and an expansion of
our net interest margin.
Strategies
• Remain focused
Grow loans, deposits and earning assets
Capitalize on mortgage banking dislocation
Maintain conservative underwriting standards
Maintain pricing discipline
Use low-cost long-term borrowings opportunistically
• Maintain superior operating efficiency
• Tangible capital level target: between 4.50% and 4.75%
Objective: Produce solid returns
Outlook for 2008
26
Strong balance sheet – strong asset quality
Significant earnings and NIM growth expected in 2008
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 2Q08 annualized
Investment Merits
27
www.astoriafederal.com
Addendum
Long Island’s Premier Community Bank
28
At March 31, 2008
Shares Outstanding: 95,899,839
Ownership Profile
29
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
45
Chief Financial Officer
Frank E. Fusco
EVP, Treasurer & CFO
34
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
30
(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
31
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
32
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
33
• 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
Over 600 community-based organizations and not-for-profit agencies
supported in our markets
• Results/Recognition
Six consecutive “Outstanding” Community Reinvestment Act ratings by OTS
Astoria Federal is an integral part of the fabric of the communities we serve
Community Involvement
Key Initiatives
34
By Delivery Channel
(In Billions)
$5.6B
$3.2B
$3.3B
$2.7B
$3.8B
1-4 Family Mortgage Loan Originations
$0.67B
35
Geographic Composition of 1-4 Family Originations
Total 1-4 Family Loan Originations
$673.5 Million
For the quarter ended March 31, 2008
36
At March 31, 2008
Total Multifamily/CRE Portfolio
$3.9 Billion
New York,
New Jersey,
Connecticut
93%
Geographic Composition of Multifamily/CRE Portfolio Loans
37
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. We have filed a petition
for a Writ of Certiorari with the Supreme Court of the United States.
Fidelity NY Claim
– On January 8, 2008, the U.S. Court of Federal Claims awarded
Astoria $16.0 million in damages. The U.S. government has filed a
Notice of Appeal in such action.
Goodwill Claims - Update
38
Non-Performing Asset
-
NPA
Non-Performing Loan
-
NPL
Mortgage Bankers Association
-
MBA
Office of Thrift Supervision
-
OTS
Mortgage-Backed Securities
Net interest margin
-
-
MBS
NIM
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
Long Island’s Premier Community Bank
www.astoriafederal.com
40
