Exhibit 99.1
Astoria Financial Corporation Announces Second Quarter EPS of $0.64;
Quarterly Cash Dividend of $0.22 Per Common Share Declared
LAKE SUCCESS, N.Y., July 17 /PRNewswire-FirstCall/ -- Astoria Financial
Corporation (NYSE: AF) ("Astoria"), the holding company for Astoria Federal
Savings and Loan Association ("Astoria Federal"), today reported net income of
$50.9 million, or $0.64 diluted earnings per common share, for the quarter
ended June 30, 2003, compared to net income of $63.9 million, or $0.73 diluted
earnings per common share, for the 2002 second quarter. For the six months
ended June 30, 2003, net income totaled $107.3 million, or $1.33 diluted
earnings per common share, compared to $125.1 million, or $1.41 diluted
earnings per common share for the comparable 2002 period.
Second Quarter 2003 Highlights:
Financial:
* Diluted EPS: $0.64
* Return on average assets: 0.88%
* Return on average equity: 13.27%
* Return on average tangible equity: 15.09%
* Efficiency ratio: 40.57%
* Non-performing assets to total assets ratio: 0.16%
* Shares repurchased: 2.5 million
Retail Banking:
* Total checking account deposits increased to $1.5 billion, up 20%
from June 30, 2002
* 18,000 new checking accounts opened; 79,000 opened over the last
twelve months
* Business deposits increased to $245.4 million, up 14% from
June 30, 2002
Mortgage Lending:
* 1-4 family loan volume of $1.6 billion, 82% increase over 2002
second quarter
* Multifamily/commercial real estate ("CRE") loan volume of
$413.3 million, 62% increase over 2002 second quarter
* Multifamily/CRE portfolios increased to $2.6 billion, up 31% from
June 30, 2002 and represent 22% of total loans
* Home equity and other loan portfolios increased to $411.8 million, up
38% from June 30, 2002 and represent 3% of total loans
Commenting on the second quarter results, George L. Engelke, Jr.,
Chairman, President and Chief Executive Officer of Astoria, noted, "The
challenging interest rate and economic environment has resulted in the
continuation of abnormally high levels of cash flow from refinancing activity.
A net gain on sales of securities of $8.0 million was recognized to offset the
increase in the mortgage servicing valuation allowance, a portion of the
negative effect of the reduced net interest margin and the effect of our
decision not to add leverage to the balance sheet. We continue to experience
growth in substantially all of our core businesses, particularly with respect
to consumer and business checking accounts and multifamily and CRE lending."
Board Declares Quarterly Cash Dividend
The Board of Directors of the Company, at their July 16, 2003 meeting,
declared a quarterly cash dividend of $0.22 per common share. The dividend is
payable on September 2, 2003 to shareholders of record as of August 15, 2003.
This is the thirty-third consecutive quarterly cash dividend declared by the
Company. The annualized dividend yield, based on the share price as of
July 15, 2003, is 3.07%.
Ninth Stock Repurchase Program Continues
During the second quarter, Astoria repurchased 2.5 million shares of its
common stock at an average cost of $25.30 per share. To date, under the ninth
program that commenced November 2002, Astoria has repurchased 5.1 million
shares of the 10 million shares authorized.
Balance Sheet Summary
Key balance sheet highlights including the cumulative effect of the
Company's balance sheet repositioning since December 31, 1999 follow:
Change
12/31/99-
(Dollars in 12/31/99 12/31/00 12/31/01 12/31/02 3/31/03 6/30/03 6/30/03
millions)
Assets $22,697 $22,337 $22,668 $21,698 $22,491 $22,283 - 2%
Loans $10,286 $11,422 $12,167 $12,059 $11,873 $12,044 +17%
MBS $ 9,287 $ 7,875 $ 7,074 $ 7,380 $ 8,817 $ 8,597 - 7%
Deposits $ 9,555 $10,072 $10,904 $11,067 $11,258 $11,309 +18%
Core
Deposits(1) $ 4,625 $ 4,922 $ 5,743 $ 5,914 $ 5,842 $ 5,824 +26%
Checking
Deposits $ 878 $ 1,005 $ 1,200 $ 1,383 $ 1,472 $ 1,511 +72%
Borrowings $11,524 $10,320 $ 9,822 $ 8,821 $ 9,385 $ 9,191 -20%
(1) Excludes time deposits
Mortgage loan originations and purchases for the quarter ended
June 30, 2003 totaled $2.0 billion compared to $1.2 billion for the 2002
second quarter. Included in the second quarter 2003 mortgage loan production
were one-to-four family loan originations totaling $1.6 billion. For the six
months ended June 30, 2003, mortgage loan originations and purchases totaled
$3.5 billion compared to $2.7 billion for the comparable 2002 period.
Mortgage loan prepayments for the quarter and six months ended June 30, 2003
totaled $1.4 billion and $2.7 billion, respectively, compared to
$826.2 million and $1.8 billion for the respective 2002 periods. The
mortgage loan pipeline at the end of the second quarter totaled $3.2 billion
compared to $1.5 billion at the end of the 2002 second quarter.
Importantly, for the quarter ended June 30, 2003, multifamily and CRE loan
originations increased 62% over the 2002 second quarter volume to $413.3
million. For the six month period ended June 30, 2003, multifamily and CRE
originations totaled $648.6 million, a 45% increase over the 2002 six month
period volume. At June 30, 2003, the multifamily and CRE loan portfolios
totaled $2.6 billion, or 22% of total loans, up 31% from last year. The
combined portfolios are expected to approximate 25% of total loans by the end
of 2003. The average loan-to-value ratio of the multifamily and CRE loans
continues to be less than 65%, based on current principal balance and original
appraised value, and the average loan balance is less than $1 million.
The Company's strong multifamily and CRE lending capabilities are
reflected in the growth of this portfolio since 1999:
Change
12/31/99-
(Dollars in 12/31/99 12/31/00 12/31/01 12/31/02 3/31/03 6/30/03 6/30/03
millions)
Multifamily/
CRE Loans $1,014 $1,282 $1,693 $2,345 $2,458 $2,633 +160%
% of Total
Loans 10% 11% 14% 20% 21% 22% +120%
At June 30, 2003, non-performing loans totaled $36.0 million, or 0.16% of
total assets compared to $39.0 million, or 0.17% of total assets at
March 31, 2003 and $32.4 million, or 0.15% of total assets at June 30, 2002.
Net charge-offs for the quarter and six months ended June 30, 2003 totaled
only $64,000 and $156,000, respectively, or an annualized rate of less than
one basis point of the average total loans outstanding. The ratio of the
allowance for loan losses to non-performing loans at June 30, 2003 was 232%.
Mortgage-backed securities ("MBS") decreased $219.8 million from the first
quarter and totaled $8.6 billion at June 30, 2003. The decrease was
attributable to MBS repayments of $1.9 billion and sales of $619.8 million,
offset by purchases of $2.3 billion. When interest rates begin to rise and
refinance activity recedes, we expect to resume a more aggressive balance
sheet repositioning with our loan portfolio expanding and our MBS portfolio
contracting through normal cash flow.
Deposits for the quarter and six months ended June 30, 2003 increased
$51.0 million and $242.0 million, respectively, to $11.3 billion.
Importantly, checking account deposits totaled $1.5 billion at June 30, 2003
and reflected annualized growth of 11% on a linked quarter basis and 20% year
over year. During the second quarter 18,000 new checking accounts were
opened. Complementing the growth in the number of accounts, the average
checking account balance has grown from $3,700 at June 30, 2002 to $4,300 at
June 30, 2003. Additionally, the success of our small business banking
initiatives was reflected in the strong growth of business deposits, including
business savings and checking accounts. At June 30, 2003, business deposits
totaled $245.4 million, representing an increase at an annualized rate of 33%
on a linked quarter basis and 14% from a year ago.
Commenting on the Company's checking account and business deposit growth,
Mr. Engelke stated, "The success of our concerted sales and marketing efforts
has enabled us to grow both business and consumer checking account deposits,
the linchpin for building long-term customer relationships."
Borrowings totaled $9.2 billion at June 30, 2003, a decrease of
$193.7 million from the prior quarter end. In addition, $300 million in
short-term borrowings were extended for an average of 3.7 years at an average
rate of 2.29%. A total of $5.1 billion of high cost borrowings, with an
average rate of 4.74%, are scheduled to mature within the next 12 months and
are expected to either be repaid or reprice at substantially lower rates which
should result in a significant decline in the cost of funds.
For example, at July 15, 2003 the fixed borrowing rates for advances from
the Federal Home Loan Bank of New York for various terms were as follows:
1 Year - 1.25% 4 Year - 2.61%
2 Year - 1.65% 5 Year - 3.02%
3 Year - 2.12%
The following table details borrowing maturities and their weighted
average rates:
Contractual Total Amount Weighted
Maturity Maturing Average Rate
3Q03 $ 965 Million 2.63%
4Q03 $ 800 Million 5.81%
1Q04 $ 2.8 Billion 4.97%
2Q04 $ 500 Million 5.80%
Total next 12 months $ 5.1 Billion 4.74%
Beyond 2Q04(1) $ 4.1 Billion 5.01%
Total $ 9.2 Billion 4.86%
In addition to the above borrowing maturities, over the next twelve months
approximately $2.7 billion of CDs with an average rate of 2.59% will mature.
During the second quarter of 2003, $896.7 million of CDs, with an average rate
of 2.30% and an average maturity of 12 months, matured and $915.6 million of
CDs were issued or repriced at an average rate of 1.71% and an average
maturity of 15 months. The following table details retail CDs maturing over
the next twelve months along with weighted average rates:
CDs Maturing Amount Weighted Average Rate
3Q03 $ 725 Million 2.08%
4Q03 $ 660 Million 2.74%
1Q04 $ 752 Million 2.84%
2Q04 $ 574 Million 2.76%
Total $ 2.7 Billion 2.59%
Stockholders' equity was $1.5 billion, or 6.86% of total assets at
June 30, 2003. Astoria Federal continues to maintain capital ratios in
excess of regulatory requirements with core, tangible and risk-based capital
ratios of 7.59%, 7.59% and 16.13%, respectively, at June 30, 2003.
Second Quarter and Six Month Earnings Summary
Net interest income for the quarter ended June 30, 2003 totaled
$96.3 million compared to $109.0 million on a linked quarter basis and
$122.4 million for the 2002 second quarter. Net interest income for the six
months ended June 30, 2003 was $205.3 million compared to $237.3 million for
the comparable 2002 period.
Astoria's net interest margin for the quarter ended June 30, 2003 was
1.78% compared to 2.09% on a linked quarter basis and 2.34% for the prior year
quarter. For the six months ended June 30, 2003, the net interest margin was
1.93% compared to 2.25% for the comparable 2002 period. The decline in the
net interest margin was due, in part, to the repurchase of 9.3 million common
shares over the past twelve months and the more rapid decline in the yield on
interest earning assets than the cost of interest bearing liabilities. The
decrease in the yield on interest earning assets was exacerbated by the effect
of accelerated premium amortization expense on mortgage loans and MBS. Net
premium amortization expense totaled $33.8 million for the 2003 second quarter
compared to $9.4 million for the year ago second quarter. For the six months
ended June 30, 2003, net premium amortization totaled $58.8 million compared
to $19.4 million for the comparable 2002 period. The accelerated level of
premium amortization is due to the unprecedented high level of mortgage
refinance activity and is expected to recede as interest rates rise and as
mortgage loan and MBS refinance activity subsides.
Non-interest income for the quarter ended June 30, 2003 increased to
$31.5 million from $24.3 million for the comparable 2002 quarter. For the six
months ended June 30, 2003 non-interest income increased to $57.4 million from
$51.3 million for the six months ended June 30, 2002. The increase is
primarily due to the net gain on sales of securities and increased customer
service fees, partially offset by a decrease in mortgage banking income, net,
as described below. Customer service fees for the quarter ended June 30, 2003
increased to $15.8 million from $15.3 million for the comparable 2002 quarter.
For the six months ended June 30, 2003 customer service fees increased to
$30.6 million compared to $29.3 million for the comparable 2002 period.
The components of mortgage banking income, net, which is included in
non-interest income, are detailed below:
(Dollars in millions) 2Q03 2Q02 1H03 1H02
Loan servicing fees $ 2.1 $ 3.1 $ 4.4 $ 6.3
Amortization of MSR* (3.8) (1.9) (7.6) (4.0)
MSR valuation adjustments (1.8) (1.9) (2.7) (1.1)
Net gain on sale of loans 3.1 1.3 6.0 2.8
Mortgage banking income, net $(0.4) $ 0.6 $ 0.1 $ 4.0
*Mortgage servicing rights ("MSR")
During the 2003 second quarter, a net gain on sales of securities of
$8.0 million was recognized in order to offset the anticipated increase in the
mortgage servicing valuation allowance of $1.8 million, which was less than
initially projected, as well as to partially offset margin compression. For
the six months ended June 30, 2003, net gain on sales of securities totaled
$10.2 million. No gain on sales of securities was recognized in either the
2002 second quarter or six month period.
General and administrative expense ("G&A") for the quarter and six months
ended June 30, 2003 totaled $51.8 million and $103.8 million, respectively,
compared to $50.3 million and $98.4 million, respectively, for the comparable
2002 period. The increases are primarily due to increased compensation and
benefit expense, particularly pension expense, and occupancy, equipment and
systems expense.
Future Outlook
Commenting on the outlook for next twelve months, Mr. Engelke stated,
"Although long term interest rates have risen somewhat over the past few
weeks, the historically low rate environment we are operating in is projected
to continue for at least the remainder of 2003. As a result, we expect to
experience a continuation of the accelerated pace of loan and MBS prepayments
resulting in high cash flow levels coupled with lower yielding reinvestment
opportunities. Accordingly, we anticipate additional margin compression and
continued downward pressure on earnings in the second half of 2003. The
margin compression will be mitigated as the repricing or repayment of $5.1
billion of high cost borrowings occurs through the second quarter of 2004. In
addition, when interest rates begin to increase, cash flow will slow due to
lower mortgage loan and MBS prepayments and premium amortization expense will
diminish, both of which will also contribute to margin expansion in 2004.
Earnings will also improve as mortgage loan portfolio growth becomes more
robust. Importantly, we will remain focused on building our core businesses,
with particular emphasis on growing checking account and business deposits and
our high quality multifamily and CRE loan portfolios."
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.3 billion, is the second
largest thrift institution headquartered in New York and fifth largest in the
United States. Astoria Federal embraces its philosophy of Putting people
first by providing its 700,000 customers and the local communities it serves
with quality financial products and services through 86 convenient banking
office locations and multiple delivery channels, including its enhanced
website, www.astoriafederal.com. Astoria commands the third largest deposit
market share in the attractive Long Island market, which includes Brooklyn,
Queens, Nassau and Suffolk counties with a population exceeding that of 38
individual states. Astoria originates mortgage loans through its banking
offices and loan production offices in New York, an extensive broker network
in nineteen states, primarily the East Coast, and through correspondent
relationships in forty-four states.
Forward Looking Statements
This document contains a number of forward-looking statements within the
meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
statements may be identified by the use of such words as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "outlook," "plan,"
"potential," "predict," "project," "should," "will," "would" and similar terms
and phrases, including references to assumptions.
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; 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 of the areas in which we do business, or conditions in the 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 delay the 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.
Earnings Conference Call July 17, 2003 at 3:30 p.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke
will host an earnings conference call Thursday afternoon, July 17, 2003 at
3:30 p.m. (ET). The toll-free dial-in number is (877) 692-2086. A replay
will be available on July 17, 2003 from 6:00 p.m. (ET) through July 24, 2003,
11:59 p.m. (ET). The replay number is (877) 519-4471, passcode: 4035440.
The conference call will also be simultaneously webcast on the Company's
website www.astoriafederal.com and archived through August 1, 2003.
(1) Included are $2.3 billion of borrowings that have a maturity greater
than one year but can be called prior to June 30, 2004.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share Data)
At At
June 30, December 31,
2003 2002
ASSETS
Cash and due from banks $142,361 $167,605
Federal funds sold and repurchase agreements 117,722 510,252
Mortgage-backed securities available-for-sale 3,009,279 2,453,633
Other securities available-for-sale 221,567 338,948
Mortgage-backed securities
held-to-maturity (fair value of
$5,635,961 and $4,985,562, respectively) 5,587,503 4,925,891
Other securities held-to-maturity (fair value
of $48,816 and $115,003, respectively) 48,588 115,366
Federal Home Loan Bank of New York stock 231,200 247,550
Loans held-for-sale, net 73,095 62,669
Loans receivable:
Mortgage loans, net 11,631,846 11,680,160
Consumer and other loans, net 411,804 379,201
12,043,650 12,059,361
Allowance for loan losses (83,390) (83,546)
Total loans receivable, net 11,960,260 11,975,815
Mortgage servicing rights, net 13,844 20,411
Accrued interest receivable 85,806 88,908
Premises and equipment, net 159,456 157,297
Goodwill 185,151 185,151
Bank owned life insurance 360,580 358,898
Other assets 86,477 89,435
TOTAL ASSETS $22,282,889 $21,697,829
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $11,309,166 $11,067,196
Reverse repurchase agreements 6,735,000 6,285,000
Federal Home Loan Bank of New York advances 1,979,000 2,064,000
Other borrowings, net 477,039 472,180
Mortgage escrow funds 120,559 104,353
Accrued expenses and other liabilities 134,510 151,102
TOTAL LIABILITIES 20,755,274 20,143,831
Stockholders' equity:
Preferred stock, $1.00 par value;
5,000,000 shares authorized:
Series A (1,225,000 shares authorized
and 0 shares issued and outstanding) -- --
Series B (2,000,000 shares authorized,
issued and outstanding) 2,000 2,000
Common stock, $.01 par value;
(200,000,000 shares authorized;
110,996,592 shares issued; and
80,672,623 and 84,805,817 shares
outstanding, respectively) 1,110 1,110
Additional paid-in capital 846,285 840,186
Retained earnings 1,431,620 1,368,062
Treasury stock (30,323,969 and
26,190,775 shares, at cost, respectively) (744,819) (639,579)
Accumulated other comprehensive income 18,075 9,800
Unallocated common stock held by ESOP
(4,850,252 and 5,018,500 shares, respectively) (26,656) (27,581)
TOTAL STOCKHOLDERS' EQUITY 1,527,615 1,553,998
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $22,282,889 $21,697,829
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share Data)
For the Three Months For the Six Months
Ended Ended
June 30, June 30,
2003 2002 2003 2002
Interest income:
Mortgage loans:
One-to-four family $117,866 $163,449 $244,795 $329,958
Multi-family, commercial
real estate and
construction 49,449 38,781 95,665 75,070
Consumer and other loans 4,960 4,117 9,732 7,919
Mortgage-backed securities 88,213 97,225 182,261 197,721
Other securities 8,280 19,449 18,129 39,105
Federal funds sold and
repurchase agreements 465 3,254 1,217 7,392
Total interest income 269,233 326,275 551,799 657,165
Interest expense:
Deposits 57,189 75,543 115,430 153,770
Borrowed funds 115,793 128,363 231,110 266,099
Total interest expense 172,982 203,906 346,540 419,869
Net interest income 96,251 122,369 205,259 237,296
Provision for loan losses -- 1,002 -- 2,006
Net interest income after
provision for loan losses 96,251 121,367 205,259 235,290
Non-interest income:
Customer service fees 15,759 15,347 30,592 29,278
Other loan fees 2,041 1,558 3,867 3,680
Net gain on sales
of securities 8,029 -- 10,165 --
Mortgage banking income, net (376) 600 60 4,028
Income from bank owned
life insurance 5,049 5,982 10,248 10,244
Other 1,041 841 2,506 4,058
Total non-interest income 31,543 24,328 57,438 51,288
Non-interest expense:
General and administrative:
Compensation and
benefits 27,604 26,289 56,368 52,357
Occupancy, equipment
and systems 15,159 13,052 29,774 26,227
Federal deposit
insurance premiums 468 499 960 1,004
Advertising 1,744 1,531 3,242 2,558
Other 6,865 8,904 13,462 16,258
Total non-interest expense 51,840 50,275 103,806 98,404
Income before income
tax expense 75,954 95,420 158,891 188,174
Income tax expense 25,065 31,489 51,605 63,025
Net income 50,889 63,931 107,286 125,149
Preferred dividends declared (1,500) (1,500) (3,000) (3,000)
Net income available to
common shareholders $49,389 $62,431 $104,286 $122,149
Basic earnings per
common share $0.64 $0.74 $1.34 $1.44
Diluted earnings per
common share $0.64 $0.73 $1.33 $1.41
Basic weighted average
common shares 76,861,759 84,216,057 77,945,438 84,843,610
Diluted weighted average
common and common
equivalent shares 77,470,793 85,946,408 78,620,070 86,490,683
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
At or For the At or For the
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Selected Returns and Financial Ratios (annualized)
Return on average
stockholders' equity 13.27 % 16.32 % 13.94 % 16.01 %
Return on average tangible
stockholders' equity (1) 15.09 18.50 15.84 18.16
Return on average assets 0.88 1.16 0.94 1.12
General and administrative
expense to average assets 0.90 0.91 0.91 0.88
Efficiency ratio (2) 40.57 34.27 39.52 34.10
Net interest rate spread (3) 1.72 2.19 1.87 2.11
Net interest margin (4) 1.78 2.34 1.93 2.25
Asset Quality Data (dollars in thousands)
Non-performing
loans/total loans 0.30 % 0.26 %
Non-performing
loans/total assets 0.16 0.15
Non-performing
assets/total assets 0.16 0.15
Allowance for loan
losses/non-performing loans 231.58 258.09
Allowance for loan
losses/non-accrual loans 234.81 269.69
Allowance for loan
losses/total loans 0.69 0.67
Net charge-offs to
average loans
outstanding (annualized) 0.00 % 0.01 % 0.00 0.01
Non-performing assets $36,588 $33,430
Non-performing loans 36,009 32,394
Loans 90 days past maturity
but still accruing interest 495 1,394
Non-accrual loans 35,514 31,000
Net charge-offs $64 $344 156 686
Capital Ratios (Astoria Federal)
Tangible 7.59 % 6.70 %
Core 7.59 6.70
Risk-based 16.13 14.74
Other Data
Cash dividends paid
per common share $0.22 $0.20 $0.42 $0.37
Dividend payout ratio 34.38 % 27.40 % 31.58 % 26.24 %
Stockholders' equity
(in thousands) $1,527,615 $1,584,295
Common stockholders'
equity (in thousands) 1,477,615 1,534,295
Book value per
common share (5) 19.49 18.37
Tangible book value
per common share (6) 17.05 16.15
Average equity/
average assets 6.63 % 7.08 % 6.78 % 7.01 %
Mortgage loans serviced
for others (in thousands) $2,219,352 $3,097,205
Full time equivalent
employees 2,001 2,000
(1) Average tangible stockholders' equity represents average
stockholders' equity less average goodwill.
(2) The efficiency ratio represents general and administrative expense
divided by the sum of net interest income plus non-interest income.
(3) Net interest rate spread represents the difference between the
average yield on average interest-earning assets and the average cost
of average interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average
interest-earning assets.
(5) Book value per common share represents common stockholders' equity
divided by outstanding common shares, excluding unallocated Employee
Stock Ownership Plan, or ESOP, shares.
(6) Tangible book value per common share represents common stockholders'
equity less goodwill divided by outstanding common shares, excluding
unallocated ESOP shares.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Three Months Ended June 30,
2003
Average
Average Yield/
Balance Interest Cost
Assets: (Annualized)
Interest-earning assets:
Mortgage loans (1):
One-to-four family $ 8,970,109 $117,866 5.26 %
Multi-family, commercial
real estate and construction 2,601,732 49,449 7.60
Consumer and other loans (1) 406,785 4,960 4.88
Total loans 11,978,626 172,275 5.75
Mortgage-backed securities (2) 8,952,753 88,213 3.94
Other securities (2) (3) 562,161 8,280 5.89
Federal funds sold and
repurchase agreements 160,646 465 1.16
Total interest-earning assets 21,654,186 269,233 4.97
Goodwill 185,151
Other non-interest-earning assets 1,280,248
Total assets $23,119,585
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $ 2,914,416 3,627 0.50
Money market 1,433,396 2,736 0.76
NOW and demand deposit 1,491,341 522 0.14
Certificates of deposit 5,409,226 50,304 3.72
Total deposits 11,248,379 57,189 2.03
Borrowed funds 10,027,713 115,793 4.62
Total interest-bearing liabilities 21,276,092 172,982 3.25
Non-interest-bearing liabilities 309,757
Total liabilities 21,585,849
Stockholders' equity 1,533,736
Total liabilities and
stockholders' equity $23,119,585
Net interest income/net
interest rate spread $ 96,251 1.72 %
Net interest-earning assets/net
interest margin $ 378,094 1.78 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.02x
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Three Months Ended June 30,
2002
Average
Average Yield/
Balance Interest Cost
Assets: (Annualized)
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,259,961 $163,449 6.37 %
Multi-family, commercial
real estate and construction 1,967,805 38,781 7.88
Consumer and other loans (1) 282,510 4,117 5.83
Total loans 12,510,276 206,347 6.60
Mortgage-backed securities (2) 6,508,577 97,225 5.98
Other securities (2) (3) 1,163,408 19,449 6.69
Federal funds sold and
repurchase agreements 753,410 3,254 1.73
Total interest-earning assets 20,935,671 326,275 6.23
Goodwill 185,151
Other non-interest-earning assets 1,007,121
Total assets $22,127,943
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,751,167 8,566 1.25
Money market 1,935,305 9,495 1.96
NOW and demand deposit 1,252,742 894 0.29
Certificates of deposit 5,224,909 56,588 4.33
Total deposits 11,164,123 75,543 2.71
Borrowed funds 9,012,673 128,363 5.70
Total interest-bearing liabilities 20,176,796 203,906 4.04
Non-interest-bearing liabilities 384,027
Total liabilities 20,560,823
Stockholders' equity 1,567,120
Total liabilities and
stockholders' equity $22,127,943
Net interest income/
net interest rate spread $122,369 2.19 %
Net interest-earning
assets/net interest margin $758,875 2.34 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.04x
(1) Mortgage and consumer and other loans include loans held-for-sale and
non-performing loans and exclude the allowance for loan losses.
(2) Securities available-for-sale are reported at average amortized cost.
(3) Other securities include Federal Home Loan Bank of New York stock.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Six Months Ended June 30,
2003
Average
Average Yield/
Balance Interest Cost
Assets: (Annualized)
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,019,861 $244,795 5.43 %
Multi-family, commercial real
estate and construction 2,520,663 95,665 7.59
Consumer and other loans (1) 398,688 9,732 4.88
Total loans 11,939,212 350,192 5.87
Mortgage-backed securities (2) 8,547,489 182,261 4.26
Other securities (2) (3) 587,487 18,129 6.17
Federal funds sold and
repurchase agreements 207,267 1,217 1.17
Total interest-earning assets 21,281,455 551,799 5.19
Goodwill 185,151
Other non-interest-earning assets 1,253,126
Total assets $22,719,732
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,875,486 7,116 0.49
Money market 1,501,755 6,212 0.83
NOW and demand deposit 1,438,772 1,012 0.14
Certificates of deposit 5,370,429 101,090 3.76
Total deposits 11,186,442 115,430 2.06
Borrowed funds 9,695,502 231,110 4.77
Total interest-bearing liabilities 20,881,944 346,540 3.32
Non-interest-bearing liabilities 297,985
Total liabilities 21,179,929
Stockholders' equity 1,539,803
Total liabilities and
stockholders' equity $22,719,732
Net interest income/
net interest rate spread $205,259 1.87 %
Net interest-earning
assets/net interest margin $399,511 1.93 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.02x
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
(Dollars in Thousands)
For the Six Months Ended June 30,
2002
Average
Average Yield/
Balance Interest Cost
Assets: (Annualized)
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,328,441 $329,958 6.39 %
Multi-family, commercial
real estate and construction 1,889,347 75,070 7.95
Consumer and other loans (1) 268,858 7,919 5.89
Total loans 12,486,646 412,947 6.61
Mortgage-backed securities (2) 6,567,934 197,721 6.02
Other securities (2) (3) 1,175,753 39,105 6.65
Federal funds sold and
repurchase agreements 872,582 7,392 1.69
Total interest-earning assets 21,102,915 657,165 6.23
Goodwill 185,151
Other non-interest-earning assets 1,015,143
Total assets $22,303,209
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,692,454 16,669 1.24
Money market 1,945,914 19,855 2.04
NOW and demand deposit 1,222,915 1,719 0.28
Certificates of deposit 5,187,287 115,527 4.45
Total deposits 11,048,570 153,770 2.78
Borrowed funds 9,312,348 266,099 5.71
Total interest-bearing liabilities 20,360,918 419,869 4.12
Non-interest-bearing liabilities 379,068
Total liabilities 20,739,986
Stockholders' equity 1,563,223
Total liabilities and
stockholders' equity $22,303,209
Net interest income/
net interest rate spread $237,296 2.11 %
Net interest-earning
assets/net interest margin $741,997 2.25 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.04x
(1) Mortgage and consumer and other loans include loans held-for-sale and
non-performing loans and exclude the allowance for loan losses.
(2) Securities available-for-sale are reported at average amortized cost.
(3) Other securities include Federal Home Loan Bank of New York Stock.