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
THIRD QUARTER ENDED
SEPTEMBER 30, 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

• $21.6 billion in assets

• $13.2 billion in deposits

• 8.3% deposit market share in Long Island market

– Largest thrift depository

• Insider & ESOP stock ownership: 21%

• $2.9 billion market cap

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

All figures in this presentation are as of September 30, 2006 and all stock market data is as of October 26, 2006, except as noted.

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Dividend Growth

[CHART APPEARS HERE]

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Cumulative Cash Returned to Shareholders

Over $2.2 billion returned to shareholders in the past 9+ years

[CHART APPEARS HERE]

Shares Repurchased:	6.7M		1.0M		12.8M		7.8M		15.5M		10.9M		10.6M		9.1M		6.6M		6.5M
Average Price:	$	12.85	$	16.31	$	12.48	$	10.81	$	18.70	$	19.32	$	18.42	$	24.82	$	27.49	$	30.03

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Stock Performance - Comparative Ten Year Total Return

[CHART APPEARS HERE]

Comparative returns from September 30, 1996 – September 30, 2006

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A Simple Formula for Enhancing Shareholder Value

[CHART APPEARS HERE]

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Focus on Core Business Focus on Core Business

(In Billions)

Assets

[CHART APPEARS HERE]

Liabilities

[CHART APPEARS HERE]

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Improving Balance Sheet Quality

At December 31, 1999
Assets

[CHART APPEARS HERE]

Liabilities & Shareholders’ Equity

[CHART APPEARS HERE]

At September 30, 2006
Assets

[CHART APPEARS HERE]

Liabilities & Shareholders’ Equity

[CHART APPEARS HERE]

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Financial Highlights

		9 Months 2006*
•	Diluted earnings per share	$	1.44
•	Return on average assets		0.86	%
•	Return on average equity		14.65	%
•	Return on average tangible equity(1)		17.11	%

•	Shares repurchased – 6.5 million shares for the 9 months ended September 30, 2006
	•	11th repurchase program underway –
		3.7 million common shares remain available for repurchase
•	Annualized dividend yield –3.28%

* The information presented for 2006 represents pro forma calculations which are not in conformity with 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 40 for a reconciliation of GAAP net income to non-GAAP earnings for the nine months ended September 30, 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 September 30, 2006

[CHART APPEARS HERE]

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1-4 Family Mortgage Loan Originations

By Product Type

[CHART APPEARS HERE]

Net portfolio growth:	+$254.7 M			($895.7 M)			($238.3 M)			+$83.7 M			+$703.2 M			+173.3
Weighted Avg. Portfolio Coupon at Period End		7.01	%		6.33	%		5.26	%		5.05	%		5.19	%		5.40	%

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Multifamily/Commercial Real Estate Lending

• Solid and growing Multifamily/CRE portfolio

•  $4.1 billion in portfolio

— Weighted Average Coupon at September 30, 2006: 5.84%

• Conservative underwriting

— Weighted average LTV < 65%

•  Average loan in portfolio < $1 million

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

• 7% annualized growth in 2006

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

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Multifamily/CRE Portfolio Growth

[CHART APPEARS HERE]

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

Average loan balance outstanding is < $ 1million

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Asset Quality Focus

• Minimal credit risk

•  Conservative underwriting, top quality loans, low LTVs

•  No sub-prime or payment option ARM lending

• Strong reserves

• Non-performing assets: 0.26% of total assets

•  Allowance for loan losses/non-performing loans: 145%

• Top quality MBS portfolio

•  Primarily GSE, agency or ‘AAA’ rated

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Interest Rate Risk Management

•	One year gap: -16.8%
•	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, $1.2 billion of non-callable CDs with maturities of 18 months or greater were issued or repriced with a weighted average rate of 4.90% and a weighted average original maturity of 29 months
	•	Borrowings – as needed

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Leading Retail Banking Franchise

• $13.2 billion in deposits, 86 banking office network

— Serving the Long Island market since 1888

• Low cost/stable source of funds – average cost: 3.14%^*

• $12.0 billion, or 91%, 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 $170 Million

• Alternative delivery channels

— ATM’s, telephone and Internet banking

* Average cost for the quarter ended September 30, 2006.

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Long Island Powerhouse

Banking Offices and Deposit Share Ranking on Long Island

[CHART APPEARS HERE]

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Well Positioned in Each of Our Key Markets

Deposits

	Nassau
($in millions)
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

Median household income: $90,227

	Suffolk
($in millions)
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

Median household income: $81,248

	Queens
($in millions)
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

Median household income: $53,531

	Brooklyn
($in millions)
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

Median household income: $40,311

U.S. Median HHI: $51,546 / NY State Median HHI: $54,403

Source: FDIC Summary of Deposits, SNL Financial. Data as of June30, 2006. Includes completed transactions.

* Astoria’s 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 06/05 Growth			Market Share			Branches		Average 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						1,574		97

* Astoria’s 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, 2006.  Includes pending transactions.

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Market Share Trend –1999 -2006

Brooklyn, Queens, Nassau and Suffolk

(Dollars in millions) Institution	June 2006 Deposits		June 99-06 $            Growth         %					June 2006 Market Share			June 99-06 Market Share Gain/Loss			June 99-06 Change in # 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

* Astoria’s 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, 2006.  Includes pending transactions.

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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, 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

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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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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Core Community Deposits

At September 30, 2006

[CHART APPEARS HERE]

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G&A Expense Ratio⁽²⁾

[CHART APPEARS HERE]

Source: SNL Financial – Median Ratios

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Goodwill Claims - 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

– Oral arguments completed in October 2006

– Timing and outcome of appellate decision unpredictable

• U.S. Court of Federal Claims scheduled April 19, 2007 as the commencement of trial for the Fidelity NY claim

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Outlook –Remainder of 2006

Challenges
•	Flat to inverted 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 (securities and borrowings) through normal cash flow
•	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 $2.2 billion returned to shareholders in the past 9+ years
*	CAGR from 1995, commencement of quarterly dividend, to 3Q06 annualized

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AF:  A Record of Enhancing Shareholder Value A of Value

Addendum

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Ownership Profile

September 30, 2006

[CHART APPEARS HERE]

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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 nine months ended September 30, 2006

[CHART APPEARS HERE]

Excludes home equity

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Geographic Composition of Multifamily/CRE Loan Originations

For the nine months ended September 30, 2006

[CHART APPEARS HERE]

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Interest Rate Risk Management

	CDs Issued or Repriced*		Weighted Average Rate			Weighted Average Original Term
4Q05	$	208.5 Million		4.37	%		29 months
1Q06	$	331.8 Million		4.73	%		23 months
2Q06	$	384.0 Million		5.07	%		31 months
3Q06	$	268.9 Million		5.27	%		34 months
TOTAL	$	1.2 Billion		4.90	%		29 months
*     Non-callable CDs issued or repriced during the period with an original maturity of 18 months or greater

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Reconciliation of GAAP Net Income to Non-GAAP Earnings

	For the Nine Months Ended September 30, 2006
(In Thousands, Except Per Share Data)	GAAP		Adjustments*		Non-GAAP
Net interest income after provision for loan losses	$	303,529	$	—	$	303,529
Non-interest income		67,488		5,456		72,944
Non-interest expense		164,843		—		164,843
Income before income tax expense		206,174		5,456		211,630
Income tax expense		68,383		1,810		70,193
Net income	$	137,791	$	3,646	$	141,437
Basic earnings per common share	$	1.44	$	0.04	$	1.48
Diluted earnings per common share	$	1.40	$	0.04	$	1.44
*     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)	G&A expense ratio represents general and administrative expense divided by average assets.

GAAP – Generally Accepted Accounting Principles	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
OTS – Office of Thrift Supervision

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LONG ISLAND’S PREMIER COMMUNITY BANK

www.astoriafederal.com