Astoria Financial 8-K Results of Operations and Financial Condition

Exhibit 99.1

Exhibit 99.1

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LONG ISLAND’S PREMIER COMMUNITY BANK

www.astoriafederal.com

INVESTOR PRESENTATION

FIRST QUARTER ENDED

MARCH 31, 2006

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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 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 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	NYSE:   AF

• $22.2 billion in assets

• $13.0 billion in deposits

• 8.3% deposit market share in Long Island market

– Largest thrift depository

• Insider & ESOP stock ownership: 21%

• $3.1 billion market cap

• 12+ years as a public company – enhancing shareholder value

All figures in this presentation are as of March 31, 2006 and all market data is as of April 24, 2006, except as noted.

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Dividend Growth

CAGR = 27%

[CHART APPEARS HERE]

*     1Q06 annualized

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Cumulative Cash Returned to Shareholders

Over $2.0 billion returned to shareholders in the past 9+ years

(In Millions)

[CHART APPEARS HERE]

Shares Repurchased:		6.7M		1.0M		12.8M		7.8M		15.5M		10.9M		10.6M		9.1M		6.6M		2.5M
Average Price:	$	12.85	$	16.31	$	12.48	$	10.81	$	18.70	$	19.32	$	18.42	$	24.82	$	27.49	$	29.27

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Stock Performance - Comparative Ten Year Total Return

[CHART APPEARS HERE]

Comparative returns from March 31, 1996 – March 31, 2006

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A Simple Formula for Enhancing Shareholder Value

MORTGAGE LENDING		RETAIL BANKING
•	Portfolio lender, not a mtge. banker	•	Premier community bank on Long Island
•	1-4 Family, Multi-Family and Commercial R.E. expertise	•	Dominant deposit market share
•	Superior asset quality	•	#1 thrift depository in core market
EFFICIENCY
SOLID RETURNS

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Focus on Core Business

(In Billions)

Assets	Liabilities
[CHART APPEARS HERE]	[CHART APPEARS HERE]

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Improving Balance Sheet Quality

At December 31, 1999	At March 31, 2006
Assets	Assets
[CHART APPEARS HERE]	[CHART APPEARS HERE]
Liabilities & Shareholders’ Equity	Liabilities & Shareholders’ Equity
[CHART APPEARS HERE]	[CHART APPEARS HERE]
Total Assets:  $22,696,536	Total Assets:  22,237,930

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1Q06 Financial Highlights

		1Q06*
•	Diluted earnings per share	$	0.53
•	Return on average assets		0.95	%
•	Return on average equity		15.86	%
•	Return on average tangible equity(1)		18.44	%

• 10^th stock repurchase program completed, 11^th program commenced, 1Q06

• Shares repurchased –  2.5 million shares during 1Q06

• 7.8 million common shares remain available for repurchase

• Annualized dividend yield – 3.22%

• AF credit rating upgraded by Standard & Poor’s to BBB, April 2006

* The information presented for 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 42 for a reconciliation of GAAP net income to non-GAAP earnings for the three months ended March 31, 2006.

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1-4 Family Mortgage Lending

•	Primarily short-term, 3/1 & 5/1 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 44 states*
•	Secondary marketing capability
	–	Sale of 15 year and 30 year fixed rate loans reduces interest rate risk
•	Geographically diversified portfolio
	–	Reduces lending concentrations
* 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, 2006

[CHART APPEARS HERE]

Total 1-4 Family Loan Portfolio
$9.8 Billion

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1-4 Family Mortgage Loan Originations

(In Billions)

By Product Type

[CHART APPEARS HERE]

Net portfolio growth:	$	+254.7	M	$	(895.7	)M	$	(238.3	)M	$	+83.7	M	$	+703.2	M	+88.6
Weighted Avg. Portfolio Coupon at Period End		7.01	%		6.33	%		5.26	%		5.05	%		5.19	%	5.25	%

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Multifamily/Commercial Real Estate Lending

• Solid and growing Multifamily/CRE portfolio

• $4.0 billion in portfolio

— Weighted Average Coupon at March 31, 2006:  5.81%

• Conservative underwriting – Average LTV < 65%

• Average loan in portfolio < $1 million

• Approximately 85% of multifamily portfolio is subject to rent control or rent stabilization

• 11% annualized growth in 1Q06

Note: LTV is based on current principal balances and original appraised values.

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Multifamily/CRE Portfolio Growth

(In Billions)

[CHART APPEARS HERE]

% of total loans 14 % 20 % 25 % 27 % 27 % 28 %

Average loan balance outstanding is < $1 million.

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Asset Quality Focus

• Minimal credit risk

• Conservative underwriting, top quality loans, low LTVs

— Net charge-offs of one basis point or less for each of the last 5 years

• No sub-prime or option ARM lending

• 99+% of all loans secured by real estate

• Strong reserves

• Non-performing assets: 0.23% of total assets

• Allowance for loan losses/non-performing loans: 162%

• Top quality MBS portfolio

• Primarily GSE, agency or ‘AAA’ rated

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Low Credit Risk Loan Portfolio Composition

At March 31, 2006

[CHART APPEARS HERE]

Total Portfolio:  $14.6 billion*
Average LTV:  64%

Excludes loans held for sale; LTV based on current principal balance and original appraised value.

* Includes net unamortized premium and net deferred loan costs.

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Low Credit Risk MBS Portfolio

At March 31, 2006

[CHART APPEARS HERE]

Total MBS Portfolio Classification
Available-for-sale	$	1.6B
Held-to-maturity	$	4.5B
Total	$	6.1B
Average Life:		4.0 years

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Interest Rate Risk Management

•	One year gap:  -11.6%
•	Key balance sheet components
	•	Short-term hybrid adjustable-rate mortgage loan portfolio
	•	Short weighted average life MBS portfolio
	Offset by:
	•	Large core deposit(2) base – provides natural hedge against rising rates
	•	Longer-term CDs
		—	Over the past twelve months, $1.6 billion of non-callable CDs with maturities of 12 months or greater were issued or repriced with a weighted average rate of 4.07% and a weighted average original maturity of 22 months
	•	Borrowings – as needed

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Retail Banking

• Acquisition vs. de-novo branching

• Differentiating from competition

– Maintain pricing discipline

– Pro-active sales culture

– Focus on customer service

• Importance of deposits in interest rate risk management (CDs vs. core)

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Leading Retail Banking Franchise

$ 13.0 billion in deposits, 86 banking office network
Serving the Long Island market since 1888
•	Low cost/stable source of funds – average cost: 2.57%*
	—	Lost cost core deposits total $5.4 billion, at an average cost of 0.84%*
	—	Checking accounts total $1.6 billion, or 29% of core deposits
•	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 $156 Million
•	Alternative delivery channels
	—	ATM’s, telephone and Internet banking
* Average cost for the quarter ended March 31, 2006.

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Long Island Powerhouse

Banking Offices and Deposit Share Ranking on Long Island

Overall Deposit Share Ranking:
#1- all thrifts,  #4- all financial institutions

[GRAPHIC APPEARS HERE]

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Well Positioned in Each of Our Key Markets

Deposits

	Nassau
($ in millions)
Institution	Total		Share			Branches
1. Chase/Bank of NY	$	8,270		18	%		78
2. Capital One/North Fork		7,154		15			60
3. Citigroup		5,971		13			54
4. Astoria		4,711		10			29
5. NY Community		4,329		9			40
Total	$	46,692					447

Median household income: $85,608

	Suffolk
($ in millions)
Institution	Total		Share			Branches
1. Chase/Bank of NY	$	9,349		28	%		66
2. Capital One/North Fork		6,310		19			79
3. Astoria		2,837		9			25
4. WaMu		2,528		8			35
5. Citigroup		2,310		7			28
Total	$	32,984					415

Median household income: $76,730

	Queens
($ in millions)
Institution	Total		Share			Branches
1. Chase/Bank of NY	$	6,096		18	%		60
2. Capital One/North Fork		4,982		14			54
3. Citigroup		4,426		12			29
4. NY Community		3,401		9			34
5. Astoria		3,177		9			17
Total	$	36,687					370

Median household income: $49,781

	Brooklyn
($ in millions)
Institution	Total		Share			Branches
1. Chase/Bank of NY	$	6,186		20	%		41
2. Citigroup		3,660		12			25
3. WaMu		3,527		11			24
4. HSBC		3,478		11			26
5. Independence		3,410		11			21
Astoria  (#7)		1,608		5			12
Total	$	31,683					275

Median household income: $38,080

U.S. Median HHI: $49,747/NY State Median HHI: $51,187

Source: FDIC Summary of Deposits.  Includes pending and completed transactions..

* Astorias deposits highlighted above are comprised of retail community deposits. Astoria does not utilize broker or municipal deposits.

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Strong Position in Core Market

Brooklyn, Queens, Nassau and Suffolk

The combined population of these four counties (7.6 million) exceeds the population of 38 individual U.S. states

(Dollars in millions) Institution	Deposits		June 05/04 Growth			Market Share			Branches		Average Deposits
1.   Chase/Bank of NY	$	27,456	$	(283	)		18.6	%		258	$	106
2.   Capital One/North Fork		24,489		2,5829			16.5			207		118
3.   Citibank		16,367		510			11.1			136		120
4.   ASTORIA*		12,333		692			8.3			83		149
5.   Washington Mutual		10,713		540			7.2			112		96
6.   NY Community		10,339		1,733			7.0			125		83
7.   HSBC		9,389		374			6.3			90		104
8.   Bank of America		5,473		(1,545	)		3.7			110		50
9.   Independence/Sovereign		4,702		831			3.2			37		127
10. Commerce		3,114		1,187			2.1			34		92
Total – Top 10	$	124,375	$	6,621			84.0	%		1,192		105
Total - Core Market	$	148,045	$	7,454						1,507		98

*    Astorias deposits highlighted above are comprised of retail community deposits. Astoria does not utilize broker or municipal deposits.

Source: FDIC Summary of Deposits. Data as of June 30, 2005. Includes pending and completed transactions.

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Market Share Trend – 1999 - 2005

Brooklyn, Queens, Nassau and Suffolk

(Dollars in millions) Institution	Deposits		June 99-05 Growth			Market Share			Market Share Gain/Loss			Change in # of Branches 99-05
1.   Chase/Bank of NY	$	27,456	$	8,526			18.6	%		1.6	%		-22
2.   Capital One/North Fork		24,489		7,112			16.5			0.9			+ 12
3.   ASTORIA*		12,333		3,139			8.3			0.0			- 1
4.   Commerce		3,114		3,114			2.1			2.1			+34
5.   Citibank		16,367		2,526			11.1			(1.3	)		- 21
6.   NY Community		10,339		2,297			7.0			(0.2	)		+ 25
7.   Independence/Sovereign		4,702		1,527			3.2			0.3			+ 8
8.   Washington Mutual		10,713		1,523			7.2			(1.1	)		+ 34
9.   HSBC		9,389		858			6.3			(1.4	)		- 10
10. Bank of America		5,473		(2,465	)		3.7			(3.4	)		- 14
Total - Top 10	$	124,375	$	28,157			84.0	%					+45
Total - Core Market	$	148,045	$	36,702									+ 123

*   Astorias deposits highlighted above are comprised of retail community deposits. Astoria does not utilize broker or municipal deposits.

Source: FDIC Summary of Deposits. Data as of June 30, 2005. Includes pending and completed transactions.

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Sales Initiatives – PEAK Process

Performance based on Enthusiasm, Actions and Knowledge

• 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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Customer Satisfaction Survey

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

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Deposit Growth - Core

TOTAL BUSINESS DEPOSITS	TOTAL CHECKING DEPOSITS	LIQUID CDs
[CHART APPEARS HERE]	[CHART APPEARS HERE]	[CHART APPEARS HERE]

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Core Retail Community Deposits

At March 31, 2006

[CHART APPEARS HERE]

Total - $13.0 Billion

* Note: More than 50% of the households that have a retail CD or Liquid CD account also have a low cost, checking, money market or passbook relationship.

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G&A Expense Ratio⁽³⁾

[CHART APPEARS HERE]

*	Most recent data available for All US Thrifts and NY Thrifts is for the year ended December 31, 2005.  AF is annualized for the quarter ended March 31, 2006.
Source: SNL Financial – Median Ratios

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Goodwill Claim Update

• One of the industry’s largest goodwill litigation claims

– $785 million of original supervisory goodwill created (LISB = $625 million,  Fidelity NY = $160 million)

– $635 million of supervisory goodwill written off (LISB = $500 million, Fidelity NY = $135 million)

• U.S. Court of Federal Claims awarded AF damages of $436 million on September 15, 2005 in the LISB case

– Appeal filed by the government

– Timing and outcome of appellate decision unpredictable

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Outlook – Remainder of 2006

Challenges
•	Flat yield curve
	•	Continued margin compression within core business
	•	Continued decline in wholesale spreads
Strategies
•	Remain focused
	•	Grow loans and deposits
		–	Maintain credit standards
		–	Maintain pricing discipline
	•	Reduce non-core business activities through normal cash flow
		–	Further reduce securities $750 million - $1.0 billion
		–	Further reduce borrowings $750 million to $1.0 billion
		–	Further reduce earning assets $500 million to $750 million
•	Maintain superior operating efficiency
•	Continue buying back AF stock
Objective:  Produce solid returns

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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

• 27% compounded annual growth in dividend^*

• Over $2.0 billion returned to shareholders in the past 9+ years

*  CAGR from 1995, commencement of quarterly dividend, to 1Q06 annualized

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AF:  A Record of Enhancing Shareholder Value

Addendum

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Ownership Profile

March 31, 2006

[CHART APPEARS HERE]

Shares Outstanding: 102,872,427

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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		25
1987	Oneonta Federal		4		205
1990	Whitestone Savings  (RTC)		4		280
1995	Fidelity New York		18		1,800
1997	The Greater NY Savings Bank		14		2,400
1998	Long Island Bancorp, Inc.		35		6,600
	Total		86	$	11,590

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1-4 Family Delinquency Ratios: AF vs. MBA

[CHART APPEARS HERE]

Source: MBA National Delinquency Survey. Beginning with 3Q02, MBA statistics for conventional loans excludes sub-prime loans.

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1- 4 Family Mortgage Loan Originations

(In Billions)

By Delivery Channel

[CHART APPEARS HERE]

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Geographic Composition of 1- 4 Family Loan Originations

For the quarter ended March 31, 2006

[CHART APPEARS HERE]

Total 1-4 Family Originations:  $522.0 Million

Excludes home equity

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Geographic Composition of Multifamily/CRE Loan Originations

At March 31, 2006

[CHART APPEARS HERE]

Total Multifamily/CRE
Loan Portfolio
$4.0 Billion

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Interest Rate Risk Management

	CDs Issued or Repriced*		Weighted Average Rate			Weighted Average Original Term
2Q05	$	424.4 Million		3.47	%		28 months
3Q05	$	202.0 Million		3.79	%		24 months
4Q05	$	437.9 Million		4.11	%		21 months
1Q05	$	564.7 Million		4.58	%		18 months
TOTAL	$	1.6  Billion		4.07	%		22 months

*   Non-callable CDs issued or repriced during the period with an original maturity of 12 months or greater

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Reconciliation of GAAP Net Income to Non-GAAP Earnings

	For the Three Months Ended March 31, 2006
(In Thousands, Except Per Share Data)	GAAP		Adjustments		Non-GAAP
Net interest income after provision for loan losses	$	111,546	$	—	$	111,546
Non-interest income		18,897		5,456		24,353
Non-interest expense		56,309		—		56,309
Income before income tax expense		74,134		5,456		79,590
Income tax expense		25,200		1,855		27,055
Net income	$	48,934	$	3,601	$	52,535
Basic earnings per common share	$	0.50	$	0.04	$	0.54
Diluted earnings per common share	$	0.49	$	0.04	$	0.53

The above adjustments relate to the $5.5 million charge for the termination of our interest rate swap agreements and the related tax effects.

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Footnotes/Glossary

(1)	Average tangible equity represents average equity less average goodwill.
(2)	Core deposits include savings, money market, checking and Liquid CD accounts.
(3)	G&A expense ratio represents general and administrative expense divided by average assets.

NPA	–	Non-Performing Assets	CAGR	–	Compounded Annual Growth Rate
MBS	–	Mortgage-Backed Securities	CRE	–	Commercial Real Estate
LTV	–	Loan-To-Value ratio	GSE	–	Government Sponsored Enterprise
ESOP	–	Employee Stock Ownership Plan	ARM	–	Adjustable Rate Mortgage
GAAP	–	Generally Accepted Accounting Principles	EPS	–	Diluted Earnings Per Share

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LONG ISLAND’S PREMIER COMMUNITY BANK

www.astoriafederal.com