Exhibit 99.1
Astoria Financial Corporation Announces Fourth Quarter EPS of $0.63;
Full Year EPS of $2.49
Quarterly Cash Dividend Increased 14% to $0.25 Per Common Share; Annual
Meeting Date Set
LAKE SUCCESS, N.Y., Jan. 22 /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
$48.0 million, or $0.63 diluted earnings per common share, for the quarter
ended December 31, 2003, compared to net income of $61.1 million, or $0.73
diluted earnings per common share for the 2002 fourth quarter and $41.6
million, or $0.53 diluted earnings per common share, for the 2003 third
quarter. For the 2003 fourth quarter, returns on average equity, average
tangible equity and average assets were 13.58%, 15.63% and 0.84%,
respectively, compared to 15.66%, 17.77% and 1.11%, respectively, for the
comparable 2002 period, and 11.35%, 12.99% and 0.74%, respectively, for the
2003 third quarter.
Net income for the full year 2003 totaled $196.8 million, or $2.49 diluted
earnings per common share, compared to net income of $248.4 million, or $2.85
diluted earnings per common share for 2002. For 2003, returns on average
equity, average tangible equity and average assets were 13.26%, 15.15%, and
0.87%, respectively, compared to 15.87%, 18.00% and 1.12%, respectively, for
2002.
Commenting on the Company's results, George L. Engelke, Jr., Chairman,
President and Chief Executive Officer of Astoria, said, "As expected, the rise
in long-term interest rates in the second half of 2003 has significantly
reduced mortgage refinance activity and related net premium amortization. In
addition, earnings have also started to benefit from the downward repricing of
our maturing borrowings. As a result, we are beginning to realize a very
positive effect on the net interest margin."
Board Increases Quarterly Cash Dividend 14%
The Board of Directors of the Company, at their January 21, 2004 meeting,
declared a quarterly cash dividend of $0.25 per common share, a 14% increase
from the previous quarter's dividend. The dividend is payable on March 1,
2004 to shareholders of record as of February 17, 2004. This is the
thirty-fifth consecutive quarterly cash dividend declared by the Company.
Ninth Stock Repurchase Program Continues
During the fourth quarter, Astoria repurchased 1.1 million shares of its
common stock at an average cost of $34.66 per share. For the twelve months
ended December 31, 2003, 7.1 million shares were repurchased at an average
cost of $27.63 per share. To date, under the ninth program that commenced in
November 2002, Astoria has repurchased 7.4 million shares of the 10 million
shares authorized, at an average price of $27.59 per share.
Board Sets Annual Shareholders' Meeting Date
The Board of Directors, at their January 21, 2004 meeting, established
May 19, 2004 as the date for the Annual Meeting of Shareholders, with a record
date of March 26, 2004.
Balance Sheet Summary & Trends
Key balance sheet highlights including the cumulative effect of the
Company's balance sheet repositioning since December 31, 1999 follow:
(Dollars in millions) Change
12/31/99-
12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/03
Assets $22,697 $22,337 $22,668 $21,698 $22,458 - 1%
Loans $10,286 $11,422 $12,167 $12,059 $12,687 + 23%
MBS $9,287 $7,875 $7,074 $7,380 $8,244 - 11%
Deposits $9,555 $10,072 $10,904 $11,067 $11,187 + 17%
Core
Deposits* $4,625 $4,922 $5,743 $5,914 $5,685 + 23%
Checking $878 $1,005 $1,200 $1,383 $1,493 + 70%
Borrowings $11,524 $10,320 $9,822 $8,821 $9,628 - 16%
* Excludes time deposits
Mortgage loan originations and purchases for the quarter ended
December 31, 2003 totaled $1.5 billion compared to $1.6 billion for the
comparable 2002 period. Included in the fourth quarter mortgage loan
production were one-to-four family mortgage loans totaling $1.0 billion,
predominantly 3/1 and 5/1 adjustable rate mortgage ("ARM") loans. For the
full year 2003, loan volume increased $1.7 billion to a record $7.3 billion,
of which 76% was one-to-four family mortgage loans, predominantly 3/1 and 5/1
ARMs.
For the quarter ended December 31, 2003, multifamily and commercial real
estate ("CRE") loan originations increased 79% to $444.9 million from
$249.2 million for the 2002 fourth quarter. For the full year 2003,
multifamily and CRE loan originations totaled $1.7 billion, an increase of
$639.9 million, or 63%, over 2002 originations. The combined portfolios of
multifamily and CRE loans grew $766.1 million, or 33% to $3.1 billion, or 25%
of total loans at December 31, 2003. The average loan outstanding in the
combined multifamily and CRE portfolio is under $1 million and the average
loan-to-value ratio of this portfolio continues to be less than 65%, based on
current principal balance and original appraised value.
The Company's strong multifamily and CRE lending capabilities are
reflected in the growth of this portfolio since 1999:
Change
(Dollars in millions) 12/31/99-
12/31/99 12/31/00 12/31/01 12/31/02 12/31/03 12/31/03
Multifamily/
CRE Loans $1,014 $1,282 $1,693 $2,345 $3,111 +207%
% of Total
Loans 10% 11% 14% 20% 25% +150%
"It is important to note that the substantial growth in our top-quality,
low credit risk multifamily and CRE portfolios, capped by record loan
originations in 2003, has been achieved while maintaining our strict
underwriting standards. We expect solid growth in these portfolios to
continue in 2004," Mr. Engelke noted.
Mortgage loan prepayments for the quarter ended December 31, 2003
decreased to $894.1 million compared to $1.5 billion for both the 2002 fourth
quarter and the previous 2003 quarter. For the year ended December 31, 2003,
mortgage loan prepayments totaled $5.2 billion as compared to $4.5 billion for
the full year 2002. Despite the very high level of refinance activity in
2003, the total loan portfolio grew by $627.6 million and totaled $12.7
billion at December 31, 2003, primarily attributable to the substantial
multifamily and CRE loan growth.
At December 31, 2003, non-performing loans declined to $29.7 million, or
0.13% of total assets, from $34.5 million, or 0.16% of total assets, at
December 31, 2002. Net charge-offs for the quarter and year ended December
31, 2003 were $84,000 and $425,000, respectively, or less than one basis point
of average loans outstanding, compared to $102,000 and $1.0 million,
respectively, for the comparable 2002 periods. The ratio of the allowance for
loan losses to non-performing loans increased to 280% at December 31, 2003
from 242% at December 31, 2002. Commenting on the superior asset quality, Mr.
Engelke noted, "The quality of our assets continues to remain excellent as
evidenced by our very low level of loan delinquencies and non-performing
assets. Net charge-offs for the year were negligible, which is also
indicative of our conservative lending policies and the fact that over 99% of
our loan portfolio is secured by real estate with a loan-to-value ratio
averaging less than 65%, based upon current principal balance and original
appraised value."
Mortgage-backed securities ("MBS") totaled $8.2 billion at December 31,
2003, essentially unchanged from the previous quarter, and increased $864.5
million from December 31, 2002. MBS repayments totaled $779.8 million for
the 2003 fourth quarter compared to $2.3 billion for the 2002 fourth quarter
and $2.5 billion for the 2003 third quarter. For the year ended December 31,
2003, MBS repayments totaled $6.9 billion compared to $6.1 billion for the
comparable 2002 period. A detailed profile of the fixed rate MBS portfolio at
December 31, 2003 follows:
(Dollars in millions)
Unamortized
Book Value Premium/ Current Collateral Avg
(Discount) Coupon Coupon Life
Premium MBS $2,555 $27.2 5.07% 6.10% 2.7 yrs
Discount/Par MBS $5,598 $(18.7) 4.15% 5.80% 3.6 yrs
Total $8,153 $8.5 4.43% 5.93% 3.3 yrs
Deposits were up $119.4 million for the year ended December 31, 2003 to
$11.2 billion. Core deposits, which exclude certificate of deposit accounts,
declined during 2003 to $5.7 billion from $5.9 billion, primarily due to a
decrease in money market accounts which was partially offset by a $236.8
million increase in savings and checking accounts. Checking account balances
increased to $1.5 billion at December 31, 2003, from $1.4 billion at December
31, 2002, and totaled 26% of core deposits. CD accounts increased $348.4
million in 2003 and totaled $5.5 billion at December 31, 2003.
Borrowings at December 31, 2003 totaled $9.6 billion. The following table
details future borrowing maturities and weighted average rates:
Contractual Total Amount Weighted
Maturity Maturing Average Rate
1Q04 (1) $ 1.3 Billion 1.11%
1Q04 $ 2.8 Billion 4.97%
2Q04 $ 500 Million 5.80%
3Q04 $ 20 Million 7.67%
4Q04 $ 105 Million 5.98%
Total next 12 months $ 4.7 Billion 4.03%
Beyond 2004 (2) $ 4.9 Billion 4.54%
Total $ 9.6 Billion 4.29%
(1) Overnight and other short-term borrowings.
(2) Includes $2.2 billion of borrowings that have a maturity date greater
than one year but can be called prior to December 31, 2004.
In the fourth quarter, during which the average cost of borrowings
declined by 38 basis points from the previous quarter to 4.39%, we entered
into forward borrowing commitments totaling $500 million, the effect of which
will be to extend a portion of the borrowings with a weighted average rate of
4.97%, scheduled to mature in the 2004 first quarter, for an average term of
3.3 years, at a weighted average rate of 3.05%. In addition, during the 2004
first quarter to date, we entered into forward borrowing commitments totaling
$700 million, the effect of which will be to extend a portion of the
borrowings with a weighted average rate of 4.97%, also scheduled to mature in
the 2004 first quarter, for an average term of 3.7 years, at a weighted
average rate of 3.01%. The remaining high cost borrowings scheduled to
mature during 2004 are also expected to either be repaid or repriced at
substantially lower rates which should result in a significant decline in the
cost of funds.
In addition to the above borrowing maturities, over the next twelve months
approximately $2.7 billion of CDs with an average rate of 2.70% will mature.
During the fourth quarter of 2003, $868.3 million of CDs, with an average rate
of 2.46% and an average maturity at inception of 15 months, matured and $833.5
million of CDs were issued or repriced at an average rate of 2.10% and an
average maturity of 18 months. The following table details CDs maturing over
the next twelve months along with weighted average rates:
CDs Maturing Amount Weighted Average Rate
1Q04 $ 1.1 Billion 2.26%
2Q04 $ 751 Million 2.28%
3Q04 $ 371 Million 2.69%
4Q04 $ 523 Million 4.19%
Total $ 2.7 Billion 2.70%
Stockholders' equity was $1.4 billion, or 6.22% of total assets, at
December 31, 2003 compared to $1.6 billion, or 7.16% of total assets, at
December 31, 2002. Astoria Federal continues to maintain capital ratios in
excess of applicable regulatory requirements. At December 31, 2003, core,
tangible and risk-based capital ratios were 7.37%, 7.37% and 15.39%,
respectively.
Fourth Quarter and Full Year Earnings Summary
Net interest income for the quarter and year ended December 31, 2003
totaled $94.6 million and $379.5 million, respectively, compared to $111.0
million and $464.4 million, respectively, for the comparable 2002 periods.
Astoria's net interest margin for the quarter ended December 31, 2003
increased to 1.74%, or 22 basis points, from the 2003 third quarter margin of
1.52%, and decreased 42 basis points from the margin of 2.16% for 2002 fourth
quarter. The linked quarter improvement in the net interest margin is
primarily the result of a decline in the cost of liabilities as higher cost
borrowings and CDs were repriced at lower rates and an increase in earning
asset yields caused primarily by a decline in premium amortization. With
mortgage refinancing activity dramatically subsiding, the net premium
amortization on mortgage loans and MBS declined 44% to $19.4 million for the
2003 fourth quarter from $34.7 million in the previous 2003 quarter. For
details on premium amortization expense, please see the following chart:
MBS and Mortgage Loan Premium Amortization Trends
(Dollars in millions)
1Q02 2Q02 3Q02 4Q02 Total 2002
MBS $(0.1) $ 1.0 $ 3.5 $ 9.3 $13.7
Mtg Loans $10.1 $ 8.4 $ 9.9 $10.5 $38.9
Total $10.0 $ 9.4 $13.4 $19.8 $52.6
1Q03 2Q03 3Q03 4Q03 Total 2003
MBS $13.7 $21.9 $22.6 $12.7 $ 70.9
Mtg Loans $11.3 $12.0 $12.1 $ 6.7 $ 42.1
Total $25.0 $33.9 $34.7 $19.4 $113.0
For the quarter ended December 31, 2003, the average cost of interest-
bearing liabilities declined 57 basis points from the 2002 fourth quarter,
primarily due to lower repricing of borrowings and retail deposits, while the
average yield on interest-earning assets declined 102 basis points from a year
ago, primarily due to higher levels of mortgage refinance activity throughout
2003.
For the twelve months ended December 31, 2003, the net interest margin was
1.78% compared to 2.23% a year ago. Contributing to the year over year
decline was a $60.4 million, or 115%, increase in net premium amortization to
$113.0 million for 2003 from $52.6 million a year ago and the effect of the
high level of refinance activity throughout 2003 offset, in part, by a decline
in the cost of liabilities of 73 basis points, primarily due to the lower
repricing of borrowings and retail deposits. "We are finally seeing a rebound
in the net interest margin for the first time in twelve months and we expect
this trend will continue with incremental benefit to the margin accruing
throughout 2004," Mr. Engelke noted.
Offsetting to some extent the future benefit to be derived from lower
premium amortization expense, multifamily and CRE prepayment penalty fee
income is expected to decline due to lower refinance activity in these
portfolios. The table below highlights prepayment penalty income over the
past eight quarters:
Multifamily and CRE Loan Prepayment Penalty Income
(Dollars in millions) 2002 2003
1Q02 2Q02 3Q02 4Q02 Total 1Q03 2Q03 3Q03 4Q03 Total
$0.9 $0.9 $1.4 $1.7 $4.9 $2.1 $3.5 $5.8 $4.6 $16.0
Non-interest income for the quarter ended December 31, 2003 totaled
$28.2 million compared to $30.9 million for the 2002 fourth quarter. For the
year ended December 31, 2003, non-interest income totaled $119.6 million
compared to $107.4 million for 2002. Included in the 2003 fourth quarter
non-interest income was a $10.1 million gain on the sale of a joint venture
and a $3.0 million increase in mortgage banking income, net, due primarily to
the recovery of the MSR valuation allowance, partially offset by a
$7.3 million net loss on the sale of $484.6 million of MBS, primarily issues
which were purchased at a premium. Included in last year's non-interest
income was the receipt in the 2002 fourth quarter of a $3.8 million net
insurance settlement. The year over year net increase is primarily due to the
increase in mortgage banking income, net, as detailed in the table below.
(Dollars in millions) 4Q02 4Q03 2002 2003
Loan servicing fees $2.6 $1.7 $12.1 $7.9
Amortization of MSR (3.5) (2.2) (10.2) (12.8)
MSR valuation adjustments (0.6) 2.9 (10.8) 3.1
Net gain on sale of loans 2.8 1.9 6.6 12.1
Mortgage banking income, net $1.3 $4.3 $(2.3) $10.3
For the quarter and year ended December 31, 2003, general and
administrative expense ("G&A") totaled $50.7 million and $205.9 million,
respectively, compared to $48.8 million and $195.8 million, respectively, for
the prior year periods. The G&A expense to average assets ratio for the 2003
fourth quarter and year was 0.89% and 0.91%, respectively, compared to 0.89%
and 0.88%, respectively, for the comparable year ago periods.
Future Outlook
Commenting on the current operating environment, Mr. Engelke stated, "We
are now just beginning to realize the positive benefits derived from lower
premium amortization expense and lower borrowing costs. With mortgage
refinance activity significantly reduced, premium amortization expense should
return to more normalized levels. The reduced level of premium amortization,
coupled with the incremental benefit yet to be derived from borrowings that
have just recently been repriced lower and the expected benefit yet to be
derived from the sizable amount of high rate borrowings which will be repaid
or repriced at substantially lower rates this year, will significantly benefit
net interest margin throughout 2004. At the same time, with reduced refinance
activity and a projected continuation of a relatively steep Treasury yield
curve, we expect to resume growth in our one-to-four family loan portfolio and
continue to produce robust growth in our multifamily and CRE loan portfolios.
This combination of events is expected to result in significant earnings
growth throughout 2004."
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association with assets of $22.5 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 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 January 22, 2004 at 3:30 p.m. (ET)
The Company, as previously announced, indicated that Mr. Engelke will host
an earnings conference call Thursday afternoon, January 22 at 3:30 p.m. (ET).
The toll-free dial-in number is (800) 967-7140. A replay will be available on
January 22, 2004 from 7:00 p.m. (ET) through January 30, 2004, 11:59 p.m.
(ET). The replay number is (888) 203-1112, passcode: 536711. The conference
call will also be simultaneously webcast on the Company's website
www.astoriafederal.com and archived for one year.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share Data)
At At
December 31, December 31,
2003 2002
ASSETS
Cash and due from banks $173,828 $167,605
Federal funds sold and repurchase
agreements 65,926 510,252
Mortgage-backed securities available-
for-sale 2,498,315 2,453,633
Other securities available-for-sale 156,677 338,948
Mortgage-backed securities held-to-
maturity
(fair value of $5,761,666 and
$4,985,562, respectively) 5,745,706 4,925,891
Other securities held-to-maturity
(fair value of $47,451
and $115,003, respectively) 47,021 115,366
Federal Home Loan Bank of New York
stock 213,450 247,550
Loans held-for-sale, net 23,023 62,669
Loans receivable:
Mortgage loans, net 12,248,772 11,680,160
Consumer and other loans, net 438,215 379,201
12,686,987 12,059,361
Allowance for loan losses (83,121) (83,546)
Total loans receivable, net 12,603,866 11,975,815
Mortgage servicing rights, net 17,952 20,411
Accrued interest receivable 77,956 88,908
Premises and equipment, net 160,089 157,297
Goodwill 185,151 185,151
Bank owned life insurance 370,310 358,898
Other assets 118,395 89,435
TOTAL ASSETS $22,457,665 $21,697,829
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $11,186,594 $11,067,196
Reverse repurchase agreements 7,235,000 6,285,000
Federal Home Loan Bank of New York
advances 1,924,000 2,064,000
Other borrowings, net 469,171 472,180
Mortgage escrow funds 108,635 104,353
Accrued expenses and other
liabilities 137,734 151,102
TOTAL LIABILITIES 21,061,134 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; - 0 - and 2,000,000
shares issued and
outstanding, respectively) - 2,000
Common stock, $.01 par value;
(200,000,000 shares authorized;
110,996,592 shares issued; and
78,670,254 and 84,805,817 shares
outstanding, respectively) 1,110 1,110
Additional paid-in capital 798,583 840,186
Retained earnings 1,481,546 1,368,062
Treasury stock (32,326,338 and
26,190,775 shares, at cost,
respectively) (811,993) (639,579)
Accumulated other comprehensive
(loss) income (46,489) 9,800
Unallocated common stock held by
ESOP
(4,771,943 and 5,018,500 shares,
respectively) (26,226) (27,581)
TOTAL STOCKHOLDERS' EQUITY 1,396,531 1,553,998
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $22,457,665 $21,697,829
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Share Data)
For the Three Months For the Twelve Months
Ended December 31, Ended December 31,
2003 2002 2003 2002
Interest income:
Mortgage loans:
One-to-four
family $111,409 $142,101 $466,544 $626,251
Multi-family,
commercial real
estate and
construction 54,701 44,963 203,785 162,677
Consumer and other
loans 4,779 4,912 19,247 17,623
Mortgage-backed
securities 83,685 88,350 337,222 377,623
Other securities 3,561 13,477 28,955 69,211
Federal funds sold
and repurchase
agreements 102 1,914 1,538 12,877
Total interest
income 258,237 295,717 1,057,291 1,266,262
Interest expense:
Deposits 54,645 62,528 225,251 288,000
Borrowed funds 108,945 122,185 452,502 513,838
Total interest
expense 163,590 184,713 677,753 801,838
Net interest income 94,647 111,004 379,538 464,424
Provision for loan
losses - - - 2,307
Net interest income
after provision for
loan losses 94,647 111,004 379,538 462,117
Non-interest income:
Customer service
fees 14,163 15,272 59,841 60,190
Other loan fees 1,688 1,774 7,556 7,696
Net (loss) gain on
sales of
securities (7,319) 2,283 7,346 10,772
Mortgage banking
income, net 4,277 1,282 10,291 (2,261)
Income from bank
owned life
insurance 4,801 5,471 19,978 21,398
Other 10,633 4,825 14,549 9,612
Total non-interest
income 28,243 30,907 119,561 107,407
Non-interest
expense:
General and
administrative:
Compensation and
benefits 26,770 27,702 110,349 106,704
Occupancy,
equipment and
systems 15,024 13,525 59,892 53,125
Federal deposit
insurance
premiums 456 500 1,896 1,996
Advertising 1,090 1,251 5,833 4,806
Other 7,323 5,863 27,907 29,196
Total general and
administrative 50,663 48,841 205,877 195,827
Extinguishment of
debt - 2,202 - 2,202
Total non-interest
expense 50,663 51,043 205,877 198,029
Income before income
tax expense 72,227 90,868 293,222 371,495
Income tax expense 24,268 29,804 96,376 123,066
Net income 47,959 61,064 196,846 248,429
Preferred dividends
declared - (1,500) (4,500) (6,000)
Net income available
to common
shareholders $47,959 $59,564 $192,346 $242,429
Basic earnings per
common share $0.65 $0.73 $2.52 $2.90
Diluted earnings per
common share $0.63 $0.73 $2.49 $2.85
Basic weighted
average common
shares 74,316,446 81,086,769 76,383,304 83,514,927
Diluted weighted
average common and
common
equivalent shares 75,637,477 81,945,229 77,294,705 84,919,651
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
At or For the At or For the
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
(Annualized)
Selected Returns and
Financial Ratios
Return on average
stockholders'
equity 13.58 % 15.66 % 13.26 % 15.87 %
Return on average
tangible
stockholders'
equity (1) 15.63 17.77 15.15 18.00
Return on average
assets 0.84 1.11 0.87 1.12
General and
administrative
expense to average
assets 0.89 0.89 0.91 0.88
Efficiency ratio (2) 41.23 34.42 41.25 34.25
Net interest rate
spread (3) 1.65 2.10 1.72 2.11
Net interest
margin (4) 1.74 2.16 1.78 2.23
Asset Quality Data
(dollars in thousands)
Non-performing
loans/total loans 0.23 % 0.29 %
Non-performing
loans/total assets 0.13 0.16
Non-performing
assets/total
assets 0.14 0.16
Allowance for loan
losses/non-
performing loans 280.10 242.04
Allowance for loan
losses/non-accrual
loans 285.51 249.53
Allowance for loan
losses/total loans 0.66 0.69
Net charge-offs to
average loans
outstanding 0.00 % 0.00 % 0.00 0.01
Non-performing
assets $31,311 $35,608
Non-performing
loans 29,676 34,517
Loans 90 days past
maturity but still
accruing interest 563 1,035
Non-accrual loans 29,113 33,482
Net charge-offs $84 $102 425 1,046
Capital Ratios
(Astoria Federal)
Tangible 7.37 % 7.23 %
Core 7.37 7.23
Risk-based 15.39 15.44
Other Data
Cash dividends paid
per common share $0.22 $0.20 $0.86 $0.77
Dividend payout
ratio 34.92 % 27.40 % 34.54 % 27.02 %
Stockholders'
equity (in
thousands) $1,396,531 $1,553,998
Common
stockholders'
equity (in
thousands) 1,396,531 1,503,998
Book value per
common share (5) 18.90 18.85
Tangible book value
per common share (6) 16.39 16.53
Average
equity/average
assets 6.19 % 7.08 % 6.55 % 7.07 %
Mortgage loans
serviced for
others (in
thousands) $1,895,102 $2,671,085
Full time
equivalent
employees 1,971 1,956
(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 December 31, 2003
Average
Average Yield/
Balance Interest Cost
Assets: (Annualized)
Interest-earning assets:
Mortgage loans (1):
One-to-four family $8,977,731 $111,409 4.96 %
Multi-family, commercial
real
estate and construction 3,123,763 54,701 7.00
Consumer and other loans (1) 429,105 4,779 4.45
Total loans 12,530,599 170,889 5.46
Mortgage-backed securities
(2) 8,692,026 83,685 3.85
Other securities (2) (3) 467,850 3,561 3.04
Federal funds sold and
repurchase agreements 42,225 102 0.97
Total interest-earning assets 21,732,700 258,237 4.75
Goodwill 185,151
Other non-interest-earning
assets 917,547
Total assets $22,835,398
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,937,759 2,955 0.40
Money market 1,264,709 1,736 0.55
NOW and demand deposit 1,471,362 222 0.06
Certificates of deposit 5,510,619 49,732 3.61
Total deposits 11,184,449 54,645 1.95
Borrowed funds 9,931,336 108,945 4.39
Total interest-bearing
liabilities 21,115,785 163,590 3.10
Non-interest-bearing liabilities 306,873
Total liabilities 21,422,658
Stockholders' equity 1,412,740
Total liabilities and
stockholders' equity $22,835,398
Net interest income/net interest
rate spread $94,647 1.65 %
Net interest-earning assets/net
interest margin $616,915 1.74 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Three Months Ended December 31, 2002
Average
Average Yield/
Balance Interest Cost
Assets: (Annualized)
Interest-earning assets:
Mortgage loans (1):
One-to-four family $9,650,104 $142,101 5.89 %
Multi-family, commercial
real
estate and construction 2,340,428 44,963 7.68
Consumer and other loans (1) 366,254 4,912 5.36
Total loans 12,356,786 191,976 6.21
Mortgage-backed securities
(2) 6,886,092 88,350 5.13
Other securities (2) (3) 771,038 13,477 6.99
Federal funds sold and
repurchase agreements 498,048 1,914 1.54
Total interest-earning assets 20,511,964 295,717 5.77
Goodwill 185,151
Other non-interest-earning
assets 1,341,603
Total assets $22,038,718
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,818,110 4,489 0.64
Money market 1,744,120 4,880 1.12
NOW and demand deposit 1,359,038 526 0.15
Certificates of deposit 5,185,574 52,633 4.06
Total deposits 11,106,842 62,528 2.25
Borrowed funds 8,999,131 122,185 5.43
Total interest-bearing
liabilities 20,105,973 184,713 3.67
Non-interest-bearing liabilities 372,728
Total liabilities 20,478,701
Stockholders' equity 1,560,017
Total liabilities and
stockholders' equity $22,038,718
Net interest income/net interest
rate spread $111,004 2.10 %
Net interest-earning assets/net
interest margin $405,991 2.16 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.02x
(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 Twelve Months Ended December 31, 2003
Average
Average Yield/
Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $8,990,636 $466,544 5.19 %
Multi-family, commercial
real
estate and construction 2,757,481 203,785 7.39
Consumer and other loans (1) 410,095 19,247 4.69
Total loans 12,158,212 689,576 5.67
Mortgage-backed securities
(2) 8,491,108 337,222 3.97
Other securities (2) (3) 529,592 28,955 5.47
Federal funds sold and
repurchase agreements 136,272 1,538 1.13
Total interest-earning assets 21,315,184 1,057,291 4.96
Goodwill 185,151
Other non-interest-earning
assets 1,172,962
Total assets $22,673,297
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,907,541 13,198 0.45
Money market 1,403,363 9,934 0.71
NOW and demand deposit 1,469,805 1,526 0.10
Certificates of deposit 5,419,725 200,593 3.70
Total deposits 11,200,434 225,251 2.01
Borrowed funds 9,686,459 452,502 4.67
Total interest-bearing
liabilities 20,886,893 677,753 3.24
Non-interest-bearing liabilities 302,311
Total liabilities 21,189,204
Stockholders' equity 1,484,093
Total liabilities and
stockholders' equity $22,673,297
Net interest income/net interest
rate spread $379,538 1.72 %
Net interest-earning assets/net
interest margin $428,291 1.78 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.02x
For the Twelve Months Ended December 31, 2002
Average
Average Yield/
Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $10,077,810 $626,251 6.21 %
Multi-family, commercial
real estate and
construction 2,072,805 162,677 7.85
Consumer and other loans (1) 307,103 17,623 5.74
Total loans 12,457,718 806,551 6.47
Mortgage-backed securities (2) 6,599,887 377,623 5.72
Other securities (2) (3) 1,011,280 69,211 6.84
Federal funds sold and
repurchase agreements 766,906 12,877 1.68
Total interest-earning assets 20,835,791 1,266,262 6.08
Goodwill 185,151
Other non-interest-earning assets 1,116,863
Total assets $22,137,805
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,754,000 29,096 1.06
Money market 1,876,107 32,512 1.73
NOW and demand deposit 1,269,866 3,176 0.25
Certificates of deposit 5,203,610 223,216 4.29
Total deposits 11,103,583 288,000 2.59
Borrowed funds 9,097,198 513,838 5.65
Total interest-bearing
liabilities 20,200,781 801,838 3.97
Non-interest-bearing liabilities 372,050
Total liabilities 20,572,831
Stockholders' equity 1,564,974
Total liabilities and stockholders'
equity $22,137,805
Net interest income/net interest
rate spread $464,424 2.11 %
Net interest-earning assets/net
interest margin $635,010 2.23 %
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
(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.
SOURCE Astoria Financial Corporation
-0- 01/22/2004
/CONTACT: Peter J. Cunningham, First Vice President, Investor Relations
of Astoria Financial Corporation, +1-516-327-7877, ir@astoriafederal.com /
/Company News On-Call: http://www.prnewswire.com/comp/104529.html /
/Web site: http://www.astoriafederal.com /
(AF)
CO: Astoria Financial Corporation; Astoria Federal Savings and Loan
Association
ST: New York
IN: FIN
SU: ERN CCA