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ASTORIA FINANCIAL
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CORPORATION
EXTENDING A PREMIER COMMUNITY BANK
[LOGO] THE GREATER (R)
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INVESTOR DIAL-IN CONFERENCE CALL
MONDAY MARCH 31, 1997 AT 11:00 AM EST (PLEASE CALL 10 MINUTES IN ADVANCE)
PHONE: 1-800-289-0437 CONFIRMATION CODE:326200
RECORDED PLAYBACK OF THE INVESTOR CALL AVAILABLE THROUGH APRIL 2
AT 1-800-839-3308
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FORWARD-LOOKING INFORMATION
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THIS PRESENTATION CONTAINS ESTIMATES OF FUTURE OPERATING RESULTS FOR 1997 AND
1998 FOR BOTH ASTORIA FINANCIAL CORPORATION AND THE GREATER NEW YORK SAVINGS
BANK ON A STAND-ALONE AND PRO FORMA COMBINED BASIS, AS WELL AS ESTIMATES OF
FINANCIAL CONDITION, OPERATING EFFICIENCIES AND REVENUE CREATION ON A COMBINED
BASIS. THESE ESTIMATES CONSTITUTE FORWARD-LOOKING STATEMENTS (WITHIN THE MEANING
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995), WHICH INVOLVE
SIGNIFICANT RISKS AND UNCERTAINTIES. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM
THE RESULTS DISCUSSED IN THESE FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT
CAUSE SUCH A DIFFERENCE INCLUDE, BUT ARE NOT LIMITED TO, GENERAL ECONOMIC
CONDITIONS, CHANGES IN INTEREST RATES, DEPOSIT FLOWS, LOAN DEMAND, REAL ESTATE
VALUES, AND COMPETITION; CHANGES IN ACCOUNTING PRINCIPLES, POLICIES, OR
GUIDELINES; CHANGES IN LEGISLATION OR REGULATION; AND OTHER ECONOMIC,
COMPETITIVE, GOVERNMENTAL, REGULATORY, AND TECHNOLOGICAL FACTORS AFFECTING EACH
COMPANY'S OPERATIONS, PRICING, PRODUCTS AND SERVICES.
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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CORPORATION
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STRATEGIC RATIONALE
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- -- Builds on already strong Long Island franchise with a powerful entry
into attractive Brooklyn market - total of 14 existing banking offices
- 3 more scheduled to open in 1997
- -- Large, efficient banking offices with high percentage of stable, low cost
core deposits
-- Average deposits per Brooklyn banking office: $147 million
-- Average for all 14 offices: $118 million
- -- Accretive to GAAP and cash EPS
- -- Ability to leverage costs over larger base
- -- Efficient use of "excess" capital
- -- Common operating strategy, business philosophies and culture, including
community commitment
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DEAL ECONOMICS
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- -- 4.4% accretive to GAAP and 6.7% accretive to cash EPS in 1998
- -- 13% dilutive to tangible book value with a 5 year earn-back period
-- Estimated goodwill creation of approximately $162 million
-- Estimated pro forma Tier 1 capital ratio of 5.5% at December
31, 1997
- -- Expense savings - $23.6 million pre-tax annually ($13.6 million
after-tax), representing 45% of Greater's projected 1997 expense base
-- Substantially all cost saves to be realized within three
months of closing
- -- One-time charges - $31.6 million pre-tax ($20.7 million after-tax)
- -- Increase to loss reserves of $45.0 million pre-tax ($25.9 million
after-tax)
- -- Conservative goodwill amortization of 15 years
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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TRANSACTION TERMS
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STRUCTURE:
-- Purchase Accounting with the consideration mix fixed at 75%
common stock and 25% cash
-- Tax-free exchange
-- Definitive agreement signed
-- Due diligence completed
TERMS:
-- Fixed exchange ratio of 0.5 shares of Astoria for each Greater
share or $19.00 per share in cash
-- Termination fee of $5 million
-- Stock option for 19.9% of Greater's shares outstanding
-- Two Greater Board members to join Astoria Board including
Gerard Keegan, CEO of Greater
-- Gerard Keegan will also become Vice-Chairman and Chief
Administrative Officer of Astoria
TIMING:
-- Subject to normal regulatory and shareholder approvals
-- Targeted to close late third quarter 1997
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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PRICING
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INDICATED DEAL VALUE (a) $293 million
PURCHASE PRICE PER SHARE $19.00
PREMIUM/MARKET (b) 20.0%
PRICE/LTM EPS 24.7x
PRICE/97 EPS CONSENSUS 19.2x
PRICE/TANGIBLE BOOK 1.68x
(a) Based on fully-diluted shares.
(b) Based on Greater's average price over the last 30 trading days.
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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OVERVIEW OF GREATER NEW YORK
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- -- Total assets - $2.5 billion
- -- Attractive retail banking franchise:
-- Total deposits - $1.7 billion
-- 14 banking offices (3 additional banking offices scheduled to
open in 1997), 27 ATMs, and 129,000 customers in Brooklyn,
Queens, Nassau and Suffolk Counties
-- 4th largest thrift in Brooklyn
-- Average deposits per banking office of $118 million; $147
million in Brooklyn
-- Demand and savings deposits - 48% of total deposits
-- Customers include a large and diverse immigrant population;
business conducted in six languages
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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STRONG LONG ISLAND RETAIL BANKING FRANCHISE
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Pro Forma
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$5.7 billion deposits
51 banking offices (54 by year end)
$113 million average deposits/banking office
[MAP OF BROOKLYN, QUEENS, NASSAU, AND SUFFOLK COUNTIES DEPICTING THE LOCATION OF
ASTORIA BANKING OFFICES AND GREATER NEW YORK BANKING OFFICES.]
Map does not reflect Astoria's 3 Westchester and 5 Upstate New York banking
offices.
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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PRO FORMA MARKET POSITION
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CORE MARKET - KINGS, QUEENS, NASSAU AND SUFFOLK COUNTIES.
- -- The combined population of these four counties exceeds the total
population of 38 U.S. states.
DEPOSITS MARKET
INSTITUTION (MILLIONS) SHARE BRANCHES
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1. Chase Manhattan $16,612 15.8% 224
2. GreenPoint Financial Corp 9,942 9.0 67
3. Dime Bancorp 8,028 7.7 51
4. Citicorp 7,715 7.4 71
5. Republic New York Corporation 6,281 6.0 50
ASTORIA - PRO FORMA 5,743 5.5 51
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6. Fleet Financial 5,743 5.5 146
7. ABN Amro North America 4,190 4.0 70
8. Astoria Financial 4,021 3.8 37
9. Long Island Bancorp 3,673 3.5 37
10. Bank of New York 3,536 3.4 114
TOTAL - CORE MARKET $104,856 1,389
Source: SNL Securities. Data as of 6/30/96 adjusted for mergers and
acquisitions.
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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WELL POSITIONED IN KEY MARKETS
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MARKET SHARE (DOLLARS IN MILLIONS)
BROOKLYN
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Market
INSTITUTION Total Share Branches
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1. Chase Manhattan $4,223.9 16.7% 55
2. Dime Bancorp 4,120.4 16.3 21
3. Republic New York 3,758.8 14.9 26
4. GreenPoint Financial 3,087.2 12.2 16
5. Citicorp 2,119.8 8.4 20
7. Astoria - Pro Forma 1,372.7 5.4 9
- -- ------------------- ------- --- -
Total $25,312.6 243
QUEENS
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MARKET
INSTITUTION TOTAL SHARE BRANCHES
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1. Chase Manhattan $4,225.3 15.1% 63
2. Citicorp 2,975.4 10.7 23
3. GreenPoint Financial 2,397.2 8.9 16
4. Astoria - Pro Forma 2,029.8 7.3 14
- -- ------------------- ------- --- --
5. Astoria Financial 1,944.7 7.0 13
Total $27,923.8 326
NASSAU
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MARKET
INSTITUTION TOTAL SHARE BRANCHES
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1. Chase Manhattan $4,106.1 12.9% 56
2. GreenPoint Financial 3,040.0 9.5 24
3. Fleet Financial 2,994.6 9.4 69
4. ABN Amro 2,581.1 8.1 39
5. Dime Bancorp 2,292.5 7.2 15
7. Astoria - Pro Forma 1,887.4 5.9 21
- -- ------------------- ------- --- ---
Total $31,863.7 439
SUFFOLK
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MARKET
INSTITUTION TOTAL SHARE BRANCHES
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1. Chase Manhattan $4,057.1 20.5% 50
2. North Fork 1,846.9 9.4 41
3. Fleet Financial 1,810.9 9.2 50
4. Long Island Bancorp 1,539.4 7.8 20
5. Bank of New York 1,359.5 6.9 47
14. Astoria - Pro Forma 453.3 2.3 7
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Total $19,756.3 381
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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PRO FORMA FINANCIAL IMPACT
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- -- "STREET" 1998 EARNINGS PER SHARE ESTIMATES FOR ASTORIA:
-- CONSENSUS MEDIAN - $3.28
-- HIGH ESTIMATE - $3.45
- -- ASTORIA MANAGEMENT COMFORTABLE WITH THE STAND-ALONE ESTIMATE OF $3.45 PER
SHARE ($4.45 CASH EPS)
- -- 1998 EPS IMPACT FROM GREATER ACQUISITION
-- PRO FORMA EPS: $3.60
-- GAAP ACCRETION: 4.4%
-- PRO FORMA CASH EPS: $4.75
-- CASH ACCRETION: 6.7%
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ESTIMATED EXPENSE REDUCTIONS
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(DOLLARS IN MILLIONS)
TOTAL
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PERSONNEL $12.9
OCCUPANCY 4.2
PROFESSIONAL SERVICES 2.7
OTHER 3.8
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PRE-TAX SAVINGS $23.6
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AFTER-TAX SAVINGS $13.6
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AS A % OF GREATER 1997 ESTIMATED
NON-INTEREST EXPENSES - 45%
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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PROVEN EXPENSE REDUCTION RESULTS IN FIDELITY ACQUISITION
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- -- CLOSED ACQUISITION ON JANUARY 31, 1995
- -- COST SAVINGS OF $7 MILLION, REPRESENTING 30% OF FIDELITY'S NON INTEREST
EXPENSES
- -- 100% OF THE COST SAVINGS ACHIEVED WITHIN TWELVE WEEKS
- -- SAME INTEGRATION AND MANAGEMENT TEAM NOW IN PLACE
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ONE-TIME RESTRUCTURING CHARGE
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(DOLLARS IN MILLIONS)
TOTAL
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PERSONNEL $19.3
TRANSACTION EXPENSES 5.6
CONVERSIONS 1.6
OTHER 5.1
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PRE-TAX CHARGE $31.6
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AFTER-TAX CHARGE $20.7
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NON - PERFORMING ASSETS
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AT DECEMBER 31, 1996 (DOLLARS IN THOUSANDS)
RESERVE
ASFC GRTR ADJUSTMENTS PRO FORMA
---- ---- ----------- ---------
Total Loans $2,637,327 $951,340 $3,588,667
Reserves 14,089 17,228 $45,000 76,317
Troubled Debt Restructuring
Commercial $0 $117,646 $117,646
Multi-family 0 37,892 37,892
Other 0 0 0
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Total Troubled Debt Restructuring 0 155,538 155,538
Non-Performing Loans
Single - Family 25,098 2,082 27,180
Multi - Family 3,651 21,428 25,079
Commercial Real Estate 3,301 8,311 11,612
Other 1,410 0 1,410
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Total Non-Perf. Loans incl. TDRs 33,460 187,359 220,819
Other Real Estate Owned 12,129 13,740 25,869
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Total Non-Performing Assets incl. TDRs $45,589 $201,099 $246,688
========== ========== =========
Non-Performing Loans/Loans 1.27% 19.69% 6.15%
NPA's/Assets 0.63 7.91 2.51
Reserves/NPLs 42.11 9.20 34.56
Reserves/NPLs - Exclude TDR's 42.11 54.14 116.91
Reserves/NPAs 30.90 8.57 30.94
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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SUMMARY
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-- CREATES A SUPERIOR RETAIL BANKING FRANCHISE
-- PROVIDES SIGNIFICANT COST SAVINGS WHILE MAINTAINING ATTRACTIVE
NETWORK OF BANKING OFFICES
-- ACCRETIVE TO GAAP AND CASH EPS
-- ACHIEVES RETURNS HIGHER THAN THOSE AVAILABLE ON A STAND-ALONE BASIS
-- RESERVE ADDITIONS PROVIDE STRONGER COVERAGE OF NON-PERFORMERS
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APPENDIX
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COMPARATIVE DATE -- AT DECEMBER 31, 1996
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(DOLLARS IN THOUSANDS)
ASTORIA GREATER
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Balance Sheet
Investment Securities $4,364,954 $1,442,028
Loans 2,651,416 968,568
Allowances (14,089) (17,228)
Intangibles 100,267 0
Other Assets 170,215 148,520
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Total Assets $7,272,763 $2,541,888
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Deposits $4,513,093 $1,666,674
Borrowings 2,111,514 640,384
Other Liabilities 59,327 25,182
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Total Liabilities $6,683,934 $2,332,240
Preferred Equity $0 $52,418
Common Equity 588,829 157,230
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Total Equity $588,829 $209,648
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Total Liabilities and Equity $7,272,763 $2,541,888
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CAPITAL RATIOS - AT DECEMBER 31, 1996
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ASTORIA GREATER
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TOTAL EQUITY / ASSETS 8.10% 8.25%
TANGIBLE EQUITY / TANGIBLE ASSETS 6.81% 8.25%
COMMON EQUITY / ASSETS 8.10% 6.19%
TANGIBLE COMMON EQUITY / TANGIBLE ASSETS 6.81% 6.19%
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ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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LOAN PORTFOLIO COMPOSITION - AT DECEMBER 31, 1996
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(DOLLARS IN THOUSANDS)
[PIE CHART DEPICTING ASTORIA'S TOTAL NET LOANS OF $2,637,327 BROKEN DOWN AS
FOLLOWS: SINGLE FAMILY (85.2%), MULTI-FAMILY (6.3%), COMMERCIAL (6.0%), AND
OTHER (2.6%).]
[PIE CHART DEPICTING GREATER NEW YORK'S TOTAL NET LOANS OF $951,340 BROKEN DOWN
AS FOLLOWS: COMMERCIAL (42.1%), MULTI-FAMILY (23.5%), SINGLE FAMILY (20.6%), AND
OTHER (13.7%).]
[PIE CHART DEPICTING PRO FORMA TOTAL NET LOANS OF $3,588,667 BROKEN DOWN AS
FOLLOWS: SINGLE FAMILY (68.1%), MULTI-FAMILY (10.9%), COMMERCIAL (15.6%), AND
OTHER (5.5%).]
ASTORIA FINANCIAL [LOGO] THE GREATER (R)
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DEPOSIT COMPOSITION - AT DECEMBER 31, 1996
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(Dollars in thousands)
[PIE CHART DEPICTING ASTORIA'S TOTAL DEPOSITS OF $4,513,093 BROKEN DOWN AS
FOLLOWS: CDS (61.5%), SAVINGS (25.1%), NOW/DEMAND (7.6%), AND MONEY MARKET
(5.8%).]
[PIE CHART DEPICTING GREATER NEW YORK'S TOTAL DEPOSITS OF $1,666,674 BROKEN DOWN
AS FOLLOWS: CDS (52.3%), SAVINGS (34.1%), NOW/DEMAND (7.8%), AND MONEY MARKET
(5.8%).]
[PIE CHART DEPICTING PRO FORMA TOTAL DEPOSITS OF $6,179,767 BROKEN DOWN AS
FOLLOWS: CDS (59.0%), SAVINGS (27.5%), NOW/DEMAND (7.7%), AND MONEY MARKET
(5.8%).]
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