________________________________________________________________________________ Astoria Financial Merger With Long Island Bancorp A Strategic Alliance Creating Long Island's Premier Community Bank [GRAPHIC OF LONG ISLAND] April 3, 1998 ________________________________________________________________________________ Astoria Financial Long Island Corporation Bancorp Forward-Looking Information ________________________________________________________________________________ This presentation contains estimates of future operating results for 1998, 1999 and 2000 for both Astoria and LISB 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. [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 2 - Long Island Corporation Bancorp Transaction Highlights ________________________________________________________________________________ Enhances Astoria's franchise value o Creates the #2 ranked deposit market share in Long Island (Nassau, Suffolk, Queens and Brooklyn) after Chase Manhattan Bank o Population of this market (6.9 million) exceeds the population of 39 individual U.S. States Accretive to earnings per share Pro forma market capitalization of approximately $3.25 billion(a) before recognition of goodwill litigation value Pro forma company to have one of the largest goodwill litigation claims o Amount of goodwill written off by the combined companies in excess of $625 million o Represents value implied by market trading instruments of approximately $570 to $740 million [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 3 - Long Island Corporation Bancorp Transaction Terms ________________________________________________________________________________ Fixed Exchange Ratio 1.15 shares of Astoria for each Long Island Bancorp share Indicated Deal Value(a) $1.8 billion Price Per LISB Share(b) $71.04 Accounting/Tax Treatment Pooling of interests/Tax-free exchange Proceeds of Goodwill Lawsuits To be shared by pro forma company Reciprocal Stock Purchase Options 19.9% of each company's shares outstanding Termination Fee $60 million (a) Based on diluted shares (including ESOP shares) (b) Based on Astoria's average closing stock price of $61.78 for the five trading days ended 4/2/98 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 4 - Long Island Corporation Bancorp Experienced Management Team ________________________________________________________________________________ George L. Engelke, Jr. Chairman, President and CEO John J. Conefry, Jr. Vice Chairman Gerard C. Keegan Vice Chairman Monte N. Redman Chief Financial Officer Board Composition: Five LISB Directors to join Ten Astoria Directors [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 5 - Long Island Corporation Bancorp Transaction Pricing(a) ________________________________________________________________________________ LISB Transaction with LISB Deployment of Recent Thrift Astoria Transaction(b) Excess Capital(c) Transactions(d) Multiples _____________ ________________ ______________ _________ Price/Book Value 3.06x -- 3.16x 1.91x Price/Tangible Book Value 3.09 -- 3.53 2.74 Price/Calendarized Earnings 1998 Earnings(E)(e) 30.5 23.1 21.2 18.2 1999 Earnings(E)(e) 27.6 21.4 18.9 16.5 1999 Earnings with Synergies(f) 18.2 15.3 14.6 -- Core Deposit Premium 31% -- 30% -- (a) Excludes value of supervisory goodwill litigation (b) Based on Astoria's average closing stock price of $61.78 for the five trading days ended 4/2/98 (c) Represents 8.0% post-tax return on tangible equity in excess of 5.5% (d) Median for all pooling thrift deals greater than $500 million since 6/30/97 (e) Based on First Call quarterly estimates as of 4/2/98 and growth rate of 10.3% (f) Assuming fully phased-in cost savings of 50% of LISB's projected 1998 expenses; recent thrift transactions multiple represents deal price to estimated earnings for calendar year following announcement of deal [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 6 - Long Island Corporation Bancorp Transaction Status ________________________________________________________________________________ o Definitive agreement signed o Due diligence completed o Subject to normal regulatory and shareholder approvals o Targeted to close end of third quarter 1998 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 7 - Long Island Corporation Bancorp Transaction Rationale ________________________________________________________________________________ o Strategically compelling market share gains o #2 ranked player in large, diverse market o Nassau/Suffolk is the third-ranked MSA in terms of median household income in the entire U.S. o Accretive to EPS o Identified cost savings in excess of $50 million annually o Significant additional value elements o Supervisory goodwill litigation o Revenue enhancements potential o Low risk in-market transaction o Creates a highly efficient premier community bank [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 8 - Long Island Corporation Bancorp A Powerful Combination ________________________________________________________________________________ Long Island's Premier Community Bank At December 31, 1997 ($ in millions) Astoria LISB Combined(a) _______ ____ __________ Total Assets $10,528 $6,073 $16,601 Deposits $6,221 $3,742 $9,963 Core Deposit %(b) 43.5% 43.3%(c) 43.4% # of Banking Offices 61 35 96 Average Deposits per Banking Office $102 $107 $104 Loans, Net $4,305 $3,487 $7,792 Loan Originations, Fiscal Year 1997 1,280 2,204 3,484 Loans Serviced for Others 142 4,500(c) 4,642 Supervisory Goodwill Amount(d) $135 $500 $635 (a) Before acquisition effects (b) Core deposits include passbook, savings, checking and money market accounts (c) As of 9/30/97 (d) Approximately, based on amount at time of FIRREA as per original amortization schedule [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 9 - Long Island Corporation Bancorp Creating a Long Island Powerhouse ________________________________________________________________________________ Banking Offices and Deposit Share Ranking on Long Island [Triangle Graphic] Astoria Banking Offices [Star Graphic] LISB Banking Offices [MAP OF BROOKLYN, QUEENS, NASSAU, AND SUFFOLK COUNTIES DEPICTING THE LOCATION OF ASTORIA BANKING OFFICES AND LISB BANKING OFFICES] Queens (#2) Brooklyn (#7) Nassau (#2) Suffolk (#3)(a) Overall Ranking: #2 (a) #4 before adjustment to exclude $3.5 billion in non-branch deposits at Fleet's Melville branch [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 10 - Long Island Corporation Bancorp Strong Position in Core Market ________________________________________________________________________________ Nassau, Suffolk, Queens and Brooklyn o The combined population of these four counties exceeds the population of 39 individual U.S. states Deposits Market Institution (millions) Share Branches 1. Chase Manhattan $16,697 15.4% 186 Astoria - Pro Forma 9,466 8.7 88 2. GreenPoint Financial Corp. 8,824 8.1 61 3. Fleet Financial Group 8,222 7.6 122 4. Dime Bancorp 8,068 7.4 51 5. Citicorp 7,726 7.1 68 6. Republic New York Corporation 6,080 5.6 49 7. Astoria 5,727 5.3 53 8. North Fork Bancorp 5,159 4.8 94 9. ABN AMRO North America 4,856 4.5 71 10. LISB 3,739 3.4 35 Total - Core Market $108,647 1,358 Source: Company data, SNL Securities. Data as of 6/30/97 adjusted for pending acquisitions [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 11 - Long Island Corporation Bancorp Well Positioned in Key Markets ________________________________________________________________________________ ($ in millions) Nassau Queens Institution Total Share Branches Institution Total Share Branches 1. Chase Manhattan $4,248 13.2% 44 1. Chase Manhattan $4,330 15.2% 53 Astoria - Pro Forma 3,068 9.6 31 Astoria - Pro Forma 3,021 10.6 20 2. ABN AMRO 2,917 9.1 38 2. Citicorp 2,961 10.4 23 3. GreenPoint Financial 2,791 8.7 21 3. GreenPoint Financial 2,310 8.1 15 4. Fleet Financial 2,582 8.1 58 4. Astoria 2,031 7.2 14 5. Dime Bancorp 2,286 7.1 15 5. North Fork 1,564 5.5 19 Total $32,091 420 Total $28,416 321 Suffolk Brooklyn Institution Total Share Branches Institution Total Share Branches 1. Fleet Financial $4,764 20.5% 39 1. Chase Manhattan $4,211 16.9% 46 2. Chase Manhattan 3,908 16.8 43 2. Dime Bancorp 4,105 16.5 21 3. North Fork 2,241 9.6 47 3. Republic New York 3,670 14.8 25 Astoria - Pro Forma 2,040 8.8 26 4. GreenPoint Financial 2,903 11.7 16 4. LISB 1,564 6.7 20 5. Citicorp 2,118 8.5 18 5. Bank of New York 1,402 6.0 49 Astoria - Pro Forma 1,337 5.4 11 Total $23,276 381 Total $24,863 236 Source: Company data, SNL Securities. Data as of 6/30/97 adjusted for pending acquisitions [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 12 - Long Island Corporation Bancorp WELL-BALANCED ORIGINATION SOURCES ________________________________________________________________________________ LOAN ORIGINATIONS BY DELIVERY CHANNEL ($ in billions) Retail Wholesale Total ------ --------- ----- Fiscal 1997: Astoria $0.3 $1.0 $1.3 LISB 1.5 0.7 2.2 ---- ---- ---- Combined 1.8 1.7 3.5 ==== ==== ==== Projected Fiscal 1998: Astoria 0.3 1.1 1.4 LISB 1.8 0.8 2.6 ---- ---- ---- Combined 2.1 1.9 4.0 ==== ==== ==== Projected Fiscal 1999: Astoria 0.4 1.1 1.5 LISB 2.6 0.8 3.4 ---- ---- ---- Combined 3.0 1.9 4.9 ==== ==== ==== [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 13 - Long Island Corporation Bancorp Attractive Financial Results ________________________________________________________________________________ o 3.6% and 6.7% accretive to GAAP EPS in 1999 and 2000, respectively o Annual expense savings in excess of $50 million pre-tax o Represents 50% of LISB's projected 1998 general and administrative expense base o At least 75% of all cost saves to be realized within 3 months of closing o Efficient deployment of excess capital/incremental cash o No revenue enhancements assumed [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 14 - Long Island Corporation Bancorp Attractive EPS Accretion(a) ________________________________________________________________________________ ($ in millions, except per share data) 1998P 1999P 2000P Astoria Estimated Net Income to Common(b) $87.7 $93.8 $101.7 LISB Estimated Net Income to Common(b) 53.4 57.4 61.7 Total Estimated Net Income to Common 141.1 151.2 163.3 After-Tax Cost Savings 1.9 27.7 32.1 After-Tax Earnings on Incremental Cash/Capital(c) 7.8 28.0 44.2 Pro Forma Net Income to Common $150.7 $206.9 $239.6 Stand Alone EPS(b) $3.40 $3.75 $4.19 Pro Forma EPS(d) $3.89 $4.48 % Accretion/(Dilution) to First Call 3.6% 6.7% % EPS Growth 14% 15% (a) Excludes anticipated transaction-related charge (b) Based on First Call estimates for 1998 and 199 (calendarized for LISB). 2000 estimate based on earnings growth rates of 11.9% and 10.3% for Astoria and LISB, respectively (c) See page 17 (d) Based on 53.0 million pro forma shares outstanding in 1998, 53.2 million in 1999 and 53.5 million in 2000 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 15 - Long Island Corporation Bancorp Estimated Expense Reductions ________________________________________________________________________________ o 50% of LISB's projected 1998 expense base ($ in millions) Total Corporate Operations $19 Administration/Finance 8 Lending 12 Retail Banking 13 Pre-Tax Cost Savings $52 After-Tax Cost Savings $29 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 16 - Long Island Corporation Bancorp One-Time Transaction-Related Charges ________________________________________________________________________________ ($ in millions) Total Severance and Management Payments $26 Advisory and Professional Fees 22 Facilities, Equipment and Contracts 43 Conversions 6 Other 7 Pre-Tax Charge $104 After-Tax Charge $75 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 17 - Long Island Corporation Bancorp Earnings on Incremental Cash/Capital ________________________________________________________________________________ ($ in millions) 1998E 1999E 2000E Average Incremental Capital resulting from: LISB Excess Equity(a) $54.7 $218.6 $218.6 Suspension of Buyback Programs(b) 45.2 140.6 246.9 Pro Forma Cost Savings 0.2 15.7 45.6 Transaction Charge (18.8) (75.0) (75.0) ----- ----- ----- Total Incremental Capital 81.3 300.0 436.1 Average Incremental Cash Resulting from: Suspension of Buyback Programs(b) 45.2 140.6 246.9 Pro Forma Cost Savings 0.2 14.2 41.1 Transaction Charge (14.0) (55.9) (55.9) ----- ----- ----- Total Incremental Cash 31.4 98.9 232.1 After-Tax Earnings on: Deployment of Incremental Capital(c) 6.5 24.0 34.9 Reinvestment of Incremental Cash(d) 1.3 4.0 9.3 ---- ----- ----- Total Earnings on Incremental Cash/Capital $7.8 $28.0 $44.7 ==== ===== ===== (a) LISB tangible equity in excess of a tangible capital ratio of 5.5% (b) Based on analyst estimates of buyback programs (c) Deployed at 8.0% after-tax return (d) Reinvested at 4.0% after-tax [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 18 - Long Island Corporation Bancorp Additional Value Elements ________________________________________________________________________________ Shareholders of Combined Company Stand to Realize Substantial Upside from Combined Goodwill Litigation Claims ($ in millions) Approximate Supervisory Goodwill in Late 1989 $135 $500 $635 Astoria LISB Combined Amount [BAR GRAPH DEPICTING ADDITIONAL VALUE ELEMENTS] [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 19 - Long Island Corporation Bancorp Additional Value Elements ________________________________________________________________________________ Goodwill Litigation Upside May Be Even Greater Based on Current Market Indicators ($ in millions) Total Value Implied by Market Estimated After-tax Supervisory Value Implied Goodwill by Market in Late 1989 Instrument CALG2(a) $485 $435 CCPR2(a) $299 $348 Astoria/LISB Pro Forma Based on CALG2 $635 $569 Astoria/LISB Pro Forma Based on CCPR2 $635 $739 (a) Based on closing prices for CALG2 and CCPR2 market instruments as of 4/2/98 [BAR GRAPH DEPICTING ADDITIONAL VALUE ELEMENTS] [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 20 - Long Island Corporation Bancorp Value Created Based on Market Indicators ________________________________________________________________________________ $69.78 $72.28 $80.24 $83.29 Approximate Additional Value for LISB Supervisory Goodwill -- $8.00 $10.50 $9.20 $12.28 Astoria Stock Price $61.78 $61.78 $61.78 $71.04 $71.04 Astoria Astoria Astoria LISB LISB Stock Value Value Deal Deal Price(a) Based on Based on Value Value CALG2(b) CCPR2(b) Based on Based on CALG2 CCPR2 (a) Based on Astoria's average closing stock price of $61.78 for the five trading days ended 4/2/98 (b) Based on closing prices for CALG2 and CCPR2 market instruments as of 4/2/98 [BAR GRAPH DEPICTING VALUE CREATED BASED ON MARKET INDICATORS] [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 21 - Long Island Corporation Bancorp Low Risk In-Market Transaction ________________________________________________________________________________ o 50% estimated cost savings o Key areas identified as part of due diligence o In-market transaction o Currently 6 branch closures anticipated o Astoria has a proven consolidation track record o Both companies have assets with strong credit quality o Year 2000 systems compliance well underway [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 22 - Long Island Corporation Bancorp Proven Successful Consolidation History ________________________________________________________________________________ Recent Astoria Acquisitions ($ in millions) Greater New York (1997) Fidelity New York (1995) Cost Savings Promised: 45%/$24 Cost Savings Promised: 30%/$7 Cost Savings Achieved: 45%/$24 Cost Savings Achieved: 30%/$7 Deposits Acquired: $1,601 Deposits Acquired: $1,053 Branches Acquired: 14 Branches Acquired: 18 Date Acquisition Date Acquisition Closed: 9/30/97 Closed: 1/31/95 Date of Systems Date of Systems Conversion: 10/13/97 Conversion: 2/21/95 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 23 - Long Island Corporation Bancorp Value Proposition ________________________________________________________________________________ Strong Stock Price Performance Driven by Superior Operating Fundamentals and Successful Acquisitions [LINE GRAPH DEPICTING VALUE PROPOSITION] [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 24 - Long Island Corporation Bancorp Value Proposition(a) ________________________________________________________________________________ ($ in millions) Tang. Estimated Common Supervisory Market Total Equity/ 1998 Goodwill Cap.(b) Assets Deposits Tang. Assets(c) P/E(b) Amount Astoria - Pro Forma(d) $3,247 $16,601 $9,963 7.0% 17.7x $635 North Fork 3,756 10,094 6,320 7.5 19.4 - Dime 3,505 21,848 13,847 5.0 17.8 515 GreenPoint 3,148 13,084 10,973 5.5 17.7 - Sovereign 3,008 17,744 9,568 4.0 14.8 N.A. People's Bank (CT) 2,519 8,883 6,405 8.6 23.2 - People's Heritage 2,168 9,669 6,745 5.3 16.9 - Webster 1,334 9,177 5,736 4.8 16.0 - Roslyn 1,058 3,601 1,942 17.4 21.5 - (a) Pro Forma for all material pending acquisitions (b) Based on prices as of 4/2/98; P/E multiples based on First Call estimates as of 4/2/98 (c) As of 12/31/97; for comparable companies not adjusted for pending acquisitions; for Astoria, ratio reflects stand-alone EPS estimate (d) Before acquisition adjustments [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 25 - Long Island Corporation Bancorp Value Proposition - Cash Items ________________________________________________________________________________ Income Statement for the Quarter Ended December 31, 1997 ($ in millions) Astoria LISB Pro Forma(a) Net Income $20,931 $13,182 $41,238 Amortization of Intangibles 4,934 108 5,042 ESOP and RRP Expense (incl. tax benefit 4,909 1,248 6,157 ------- ------- ------- Total Non-Cash Items 9,843 1,356 11,199 Cash Net Income $30,774 $14,538 $52,437 ROAA 0.81% 0.87% 1.00% ROAE 9.3 9.6 11.4 Cash ROAA 1.19 0.96 1.28 Cash ROAE 13.7 10.6 14.5 Cash Return on Avg. Tangible Equity 19.3 10.7 17.8 Cash Efficiency Ratio 39.4 53.0 32.7 (a) Adjusted for fully phased-in cost savings [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 26 - Long Island Corporation Bancorp ________________________________________________________________________________ Appendix [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 27 - Long Island Corporation Bancorp Pro Forma Balance Sheet Data ________________________________________________________________________________ At December 31, 1997 ($ in millions) Astoria LISB Pro Forma Loans, Net $4,305 $3,487 $7,792 MBS 4,062 1,711 5,773 Intangibles 258 5 263 Total Assets 10,528 6,073 16,601 Deposits 6,221 3,742 9,963 Borrowings 3,273 1,614 4,887 Common Equity 849 557 1,406 Preferred Equity 50 - 50 Book Value/Share $32.42 $23.19 $26.13 Tangible Book Value/Share $22.57 $22.98 $21.24 (a) Before acquisition adjustments [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 28 - Long Island Corporation Bancorp Pro Forma Asset Quality Data ________________________________________________________________________________ At December 31, 1997 ($ in millions) Astoria LISB Pro Forma Non-Performing Loans (NPLs) $42.8 $45.9 $88.7 REO 16.3 7.9 24.2 Non-Performing Assets (NPAs) 59.1 53.8 112.9 Loan Loss Reserve 40.0 33.7 73.7 NPAs/Assets 0.56% 0.89% 0.68% Reserves/Loans 0.93 0.91 0.92 Reserves/NPLs 93.46 73.42 83.09 [LOGO] [LOGO] - -------------------------------------------------------------------------------- Astoria Financial - 29 - Long Island Corporation Bancorp