Exhibit 99.1
Astoria Financial Corporation Announces 22% Increase in Second
Quarter EPS to $0.78
Quarterly Cash Dividend of $0.25 Per Common Share Declared
LAKE SUCCESS, N.Y., July 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
$57.5 million, or $0.78 diluted earnings per common share, for the quarter
ended June 30, 2004, representing an increase of 13% and 22%, respectively,
from net income of $50.9 million, or $0.64 diluted earnings per common share,
for the 2003 second quarter. For the six months ended June 30, 2004, net
income totaled $110.9 million, or $1.48 diluted earnings per common share, up
3% and 11%, respectively, from $107.3 million, or $1.33 diluted earnings per
common share for the comparable 2003 period.
Second Quarter 2004 Highlights:
Financial:
* Diluted EPS: $0.78, up 22% from last year, up 10% from linked quarter
* Return on average assets: 1.03%, up 17% from last year, up 8% from
linked quarter
* Return on average equity: 16.55%, up 25% from last year, up 10% from
linked quarter
* Return on average tangible equity: 19.09%, up 27% from last year, up
10% from linked quarter
* Total deposits increased $387.0 million, or 13% annualized
* Multifamily/Commercial Real Estate ("CRE") loan portfolio increased
$97.2 million, or 12% annualized, and represents 26% of total loans
* Efficiency ratio: 39.21%
* Non-performing assets to total assets: 0.12%
* Shares repurchased: 1.5 million
Commenting on the second quarter results, George L. Engelke, Jr.,
Chairman, President and Chief Executive Officer of Astoria, noted, "We are
pleased to report double-digit increases in quarterly net income, earnings per
share, and related returns, due, primarily, to a 35 basis point increase in
the net interest margin year over year. Second quarter results were somewhat
tempered by the decline in interest rates at the end of the first quarter
which sparked an increase in mortgage refinance activity and a resulting
increase in mortgage repayment cash flow in the second quarter. As a result,
net premium amortization was higher than expected in the second quarter,
negatively impacting margin expansion, and the total loan portfolio reflected
a modest decline. Net premium amortization of $12.7 million in the second
quarter, $4.4 million higher than the 2004 first quarter, was offset by a
recovery of $5.2 million in the MSR valuation allowance which is included in
mortgage banking income, net. Importantly, we are currently experiencing much
lower refinance activity due to the increase in interest rates during the
second quarter which should translate into a resumption of loan growth and
lower premium amortization going forward."
Board Declares Quarterly Cash Dividend
The Board of Directors of the Company, at their July 21, 2004 meeting,
declared a quarterly cash dividend of $0.25 per common share. The dividend is
payable on September 1, 2004 to shareholders of record as of August 16, 2004.
This is the thirty-seventh consecutive quarterly cash dividend declared by the
Company.
Ninth Stock Repurchase Program Completed; Tenth Repurchase Program
Commenced
During the second quarter, Astoria repurchased 1.5 million shares of its
common stock at an average cost of $36.30 per share. On July 9, 2004, Astoria
completed the 10 million share authorization under the ninth repurchase
program and commenced its tenth repurchase program, as previously announced,
which authorizes the repurchase of eight million shares, or approximately 10%
of total shares outstanding.
Balance Sheet Summary
Key balance sheet highlights, including the cumulative effect of the
Company's balance sheet repositioning since December 31, 1999, follow:
(Dollars in millions) 12/31/99 12/31/00 12/31/01 12/31/02
Assets $22,700 $22,341 $22,672 $21,702
Loans $10,286 $11,422 $12,167 $12,059
MBS $9,287 $7,875 $7,074 $7,380
Deposits $9,555 $10,072 $10,904 $11,067
Core Deposits (1) $4,625 $4,922 $5,743 $5,914
Checking Deposits $878 $1,005 $1,200 $1,383
Borrowings $11,528 $10,324 $9,826 $8,825
Change
(Dollars in millions) 12/31/03 6/30/04 12/31/99-6/30/04
Assets $22,462 $22,334 -2%
Loans $12,687 $12,625 +23%
MBS $8,244 $8,204 -12%
Deposits $11,187 $11,896 +25%
Core Deposits (1) $5,685 $5,634 +22%
Checking Deposits $1,493 $1,541 +76%
Borrowings $9,632 $8,804 -24%
(1) Excludes time deposits
Mortgage loan originations and purchases for the quarter ended June 30,
2004 totaled $1.2 billion compared to $2.0 billion for the 2003 second quarter
and include one-to-four family loan originations and purchases of $933.7
million and $1.6 billion, respectively, predominately 3/1 and 5/1 adjustable
rate loans. For the six months ended June 30, 2004, mortgage loan
originations and purchases totaled $2.1 billion compared to $3.5 billion for
the comparable 2003 period and include one-to-four family loan originations
and purchases of $1.6 billion and $2.8 billion, respectively. The decrease in
mortgage loan volume was due to reduced mortgage loan refinance activity due
to higher interest rates in 2004 as compared to 2003. Mortgage loan
prepayments for the quarter and six months ended June 30, 2004 totaled $1.1
billion and $1.7 billion, respectively, compared to $1.4 billion and $2.7
billion for the respective 2003 periods.
For the quarter ended June 30, 2004, multifamily and CRE loan originations
totaled $274.0 million compared to the 2003 second quarter volume of $413.3
million. For the six month period ended June 30, 2004, multifamily and CRE
loan originations totaled $514.1 million compared to $648.6 million for the
2003 six month period volume. At June 30, 2004, the multifamily and CRE loan
portfolios totaled $3.3 billion, up $97.2 million from the 2004 first quarter
and $674.4 million, or 26%, from June 30, 2003, and represent 26% of total
loans. The average loan-to-value ratio of the combined multifamily and CRE
loan portfolios 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 these portfolios since 1999:
(Dollars in millions) 12/31/99 12/31/00 12/31/01 12/31/02
Multifamily/CRE
Loans $1,014 $1,282 $1,693 $2,345
% of Total Loans 10% 11% 14% 20%
Change
(Dollars in millions) 12/31/03 6/30/04 12/31/99-6/30/04
Multifamily/CRE
Loans $3,111 $3,307 +226%
% of Total Loans 25% 26% +160%
At June 30, 2004, non-performing loans totaled $26.5 million, or 0.12% of
total assets compared to $36.0 million, or 0.16% of total assets at June 30,
2003. Net charge-offs for the quarter and six months ended June 30, 2004
totaled $148,000 and $303,000, respectively, or an annualized rate of less
than one basis point of average total loans outstanding. The ratio of the
allowance for loan losses to non-performing loans at June 30, 2004 was 313%.
Mortgage-backed securities ("MBS") increased slightly from March 31, 2004,
decreased $392.6 million from the year ago second quarter, and totaled $8.2
billion at June 30, 2004. Of the total, $2.5 billion, equal to 11% of assets,
are categorized as available-for-sale.
A detailed profile of the premium/discount associated with our fixed rate
CMO/REMIC MBS portfolio at June 30, 2004 follows:
(Dollars in millions) Unamortized
Premium/ Collateral Weighted
Book Value (Discount) MBS Coupon Coupon Avg Life
Premium CMO/
REMIC MBS $ 1,841 $ 17.2 4.98% 6.03% 3.6 yrs
Discount/Par
CMO/REMIC
MBS $ 6,296 $(22.6) 4.18% 5.80% 4.6 yrs
Total $ 8,137 $(5.4) 4.36% 5.85% 4.4 yrs
Deposits for the quarter ended June 30, 2004 increased $387.0 million, or
13% on an annualized basis, to $11.9 billion from $11.5 billion at March 31,
2004. For the six months ended June 30, 2004, deposits increased $709.1
million. The increase for the quarter and six month periods was primarily
due to increases of $381.8 million and $760.7 million, respectively, in CD
accounts to $6.3 billion and reflects the continued success of our marketing
campaign that has focused on attracting long-term deposits to enable us to
reduce high cost borrowings. During the second quarter of 2004, $1.1 billion
of CDs, with a weighted average rate of 2.30% and an average maturity at
inception of 14 months, matured and $1.4 billion of CDs were issued or
repriced at a weighted average rate of 2.69% and an average maturity at
inception of 18 months. For the six months ended June 30, 2004, $2.2 billion
of CDs, with a weighted average rate of 2.31% and an average maturity at
inception of 14 months, matured and $2.9 billion of CDs were issued or
repriced with a weighted average rate of 2.60% and an average maturity at
inception of 20 months. "The CD marketing campaign, in addition to replacing
borrowings with deposits, has also produced new customers from our
communities, creating relationship development opportunities that, for
example, during the second quarter, resulted in 26% of new customers and
existing customers without checking accounts being cross-sold new, low-cost
checking accounts, the linchpin for building long-term, profitable customer
relationships. Importantly, our checking cross-sell penetration has increased
to approximately 40% for the month of June," Mr. Engelke noted. Checking
account deposits totaled $1.5 billion at June 30, 2004 and reflected
annualized growth of 10% on a linked quarter basis. Additionally, our small
business banking initiatives continue to result in solid growth of business
deposits, including business savings and checking accounts. At June 30, 2004,
business deposits totaled $268.3 million, increasing at an annualized rate of
24% on a linked quarter basis.
Borrowings totaled $8.8 billion at June 30, 2004, a decrease of $591.0
million from the prior quarter end.
Over the past nine months, in an effort to minimize interest rate risk,
$3.3 billion of borrowings and $3.7 billion of CDs have been extended as shown
in the following chart:
Borrowings Weighted Weighted
Refinanced Average Rate Average Orig. Maturity
4Q03 $ 900 million 2.63% 2.7 years
1Q04 $2,400 million 2.71% 3.3 years
Subtotal $3,300 million 2.69% 3.1 years
Weighted Weighted
CD's Issued Average Rate Average Orig. Maturity
4Q03 $833 million 2.10% 18 months
1Q04 $1,508 million 2.51% 22 months
2Q04 $1,380 million 2.69% 18 months
Subtotal $3,721 million 2.48% 20 months
Total $7,021 million 2.58% 2.3 years
Stockholders' equity was $1.4 billion, or 6.14% of total assets at June
30, 2004. Astoria Federal continues to maintain capital ratios in excess of
regulatory requirements with core, tangible and risk-based capital ratios of
7.11%, 7.11% and 14.69%, respectively, at June 30, 2004.
Second Quarter and Six Month Earnings Summary
Net interest income for the quarter ended June 30, 2004 increased 18% to
$113.3 million from $96.3 million for the 2003 second quarter and for the six
months ended June 30, 2004 increased 11% to $227.8 million from $205.3 million
for the comparable 2003 six-month period.
Astoria's net interest margin for the quarter ended June 30, 2004 was
2.13% compared to 2.14% on a linked quarter basis and 1.78% for the prior year
quarter. The one basis point decline in the net interest margin on a linked
quarter basis was primarily attributable to the effect of the $4.4 million
increase in mortgage loan and MBS net premium amortization over the previous
quarter, as previously discussed. Net premium amortization expense increased
53% to $12.7 million for the 2004 second quarter from $8.3 million in the
prior quarter and declined $21.2 million, or 63%, from the year ago second
quarter as detailed in the following chart:
MBS and Mortgage Loan Net Premium Amortization Trends
(Dollars in millions) Year Over Year Linked Quarter
2Q03 1Q04 2Q04 $Change %Change $Change %Change
MBS $21.9 $2.9 $4.0 $(17.9) (82%) $1.1 38%
Mortgage
Loans $12.0 $5.4 $8.7 $(3.3) (28%) $3.3 61%
Total $33.9 $8.3 $12.7 $(21.2) (63%) $4.4 53%
Non-interest income for the quarter ended June 30, 2004 totaled $27.9
million compared to $31.5 million for the comparable 2003 quarter. For the
six months ended June 30, 2004 non-interest income decreased to $50.0 million
from $57.4 million for the six months ended June 30, 2003. The decreases are
primarily due to the absence of net gain on sales of securities in the 2004
second quarter compared to $8.0 million in net gains on sales of securities in
the 2003 second quarter. For the six months ended June 30, 2004, net gain on
sales of securities totaled $2.4 million compared to $10.2 million for the
comparable 2003 period. Customer service fees for the quarter and six months
ended June 30, 2004 totaled $14.6 million and $28.3 million, respectively,
compared to $15.8 million and $30.6 million, respectively, for the comparable
2003 periods. The decreases are primarily due to lower fees from annuity
sales and a decrease in debit card interchange fees caused by a reduction in
the fee structure on signature-based debit card transactions.
Mortgage banking income, net, which is included in non-interest income,
increased $6.7 million and $5.0 million in the respective three and six month
periods ending June 30, 2004 as compared to the respective 2003 periods as
detailed in the table below:
(Dollars in millions) 2Q04 2Q03 1H04 1H03
Loan servicing fees $ 1.5 $ 2.1 $ 3.0 $4.4
Amortization of MSR* (1.8) (3.8) (3.8) (7.6)
MSR valuation adjustments 5.2 (1.8) 3.8 (2.7)
Net gain on sale of loans 1.4 3.1 2.1 6.0
Mortgage banking income, net $ 6.3 $(0.4) $5.1 $ 0.1
* Mortgage servicing rights
General and administrative expense ("G&A") for the quarter and six months
ended June 30, 2004 totaled $55.4 million and $112.4 million, respectively,
compared to $51.8 million and $103.8 million, respectively, for the comparable
2003 periods. The increase for the quarter is primarily due to increased
compensation and benefits expense and for the six months is due to occupancy,
equipment and systems expense, due to, among other things, systems
enhancements over the past year as well as increased compensation and benefits
expense.
Future Outlook
Commenting on the outlook for the remainder of 2004, Mr. Engelke stated,
"In the current environment of somewhat higher long-term interest rates,
mortgage refinance activity has subsided and purchase mortgage activity, which
represented approximately 70% of our residential loan applications in June,
has remained strong. With the expectation of reduced cash flow from mortgage
loan and MBS prepayments, we expect a resumption of mortgage loan portfolio
growth going forward. Reduced mortgage refinance activity also results in
lower mortgage loan and MBS net premium amortization which should result in a
modest expansion in the net interest margin during the remainder of 2004. We
will remain focused on building our core businesses, with particular emphasis
on growing our deposits and increasing the 1-4 family, 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 third
largest thrift institution headquartered in New York and sixth 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, http://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 39 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 July 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, July 22, 2004 at 3:30 p.m.
(ET). The toll-free dial-in number is (800) 967-7140. A replay will be
available on July 22, 2004 from 6:00 p.m. (ET) through July 29, 2004, 11:59
p.m. (ET). The replay number is (888) 203-1112, passcode: 799049. The
conference call will also be simultaneously webcast on the Company's website
http://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
June 30, December 31,
2004 2003
ASSETS
Cash and due from banks $142,830 $173,828
Federal funds sold and repurchase
agreements 136,299 65,926
Mortgage-backed securities available-
for-sale 2,460,233 2,498,315
Other securities available-for-sale 127,408 156,677
Mortgage-backed securities held-to-
maturity (fair value of $5,666,523 and
$5,761,666, respectively) 5,743,983 5,745,706
Other securities held-to-maturity
(fair value of $43,495 and $47,451,
respectively) 43,029 47,021
Federal Home Loan Bank of New York
stock, at cost 153,700 213,450
Loans held-for-sale, net 31,562 23,023
Loans receivable:
Mortgage loans, net 12,151,394 12,248,772
Consumer and other loans, net 473,389 438,215
12,624,783 12,686,987
Allowance for loan losses (82,818) (83,121)
Total loans receivable, net 12,541,965 12,603,866
Mortgage servicing rights, net 20,037 17,952
Accrued interest receivable 78,750 77,956
Premises and equipment, net 158,085 160,089
Goodwill 185,151 185,151
Bank owned life insurance 374,738 370,310
Other assets 136,525 122,324
TOTAL ASSETS $22,334,295 $22,461,594
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $11,895,714 $11,186,594
Reverse repurchase agreements 6,785,000 7,235,000
Federal Home Loan Bank of New York
advances 1,549,000 1,924,000
Other borrowings, net 469,773 473,037
Mortgage escrow funds 120,655 108,635
Accrued expenses and other
liabilities 142,035 137,797
TOTAL LIABILITIES 20,962,177 21,065,063
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 and - 0 - shares issued
and outstanding) - -
Common stock, $.01 par value;
(200,000,000 shares authorized;
110,996,592 shares issued; and
76,823,659 and 78,670,254 shares
outstanding, respectively) 1,110 1,110
Additional paid-in capital 807,435 798,583
Retained earnings 1,551,222 1,481,546
Treasury stock (34,172,933 and
32,326,338 shares, at cost,
respectively) (889,533) (811,993)
Accumulated other comprehensive loss (72,670) (46,489)
Unallocated common stock held by ESOP
(4,630,059 and 4,760,054 shares,
respectively) (25,446) (26,226)
TOTAL STOCKHOLDERS' EQUITY 1,372,118 1,396,531
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $22,334,295 $22,461,594
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,
2004 2003 2004 2003
Interest income:
Mortgage loans:
One-to-four family $104,205 $117,866 215,555 $244,795
Multi-family,
commercial real
estate and construction 54,634 49,449 108,265 95,665
Consumer and other loans 4,798 4,960 9,688 9,732
Mortgage-backed securities 84,880 88,213 171,753 182,261
Other securities 3,824 8,280 8,020 18,129
Federal funds sold and
repurchase agreements 222 465 376 1,217
Total interest income 252,563 269,233 513,657 551,799
Interest expense:
Deposits 56,902 57,189 111,132 115,430
Borrowed funds 82,345 115,793 174,696 231,110
Total interest expense 139,247 172,982 285,828 346,540
Net interest income 113,316 96,251 227,829 205,259
Provision for loan losses - - - -
Net interest income after
provision for loan losses 113,316 96,251 227,829 205,259
Non-interest income:
Customer service fees 14,554 15,759 28,303 30,592
Other loan fees 1,188 2,041 2,450 3,867
Net gain on sales of
securities - 8,029 2,372 10,165
Mortgage banking income
(loss), net 6,251 (376) 5,133 60
Income from bank owned
life insurance 4,228 5,049 8,678 10,248
Other 1,645 1,041 3,069 2,506
Total non-interest income 27,866 31,543 50,005 57,438
Non-interest expense:
General and administrative:
Compensation and benefits 29,582 27,604 61,046 56,368
Occupancy, equipment
and systems 15,774 15,159 32,491 29,774
Federal deposit
insurance premiums 441 468 890 960
Advertising 1,701 1,744 3,410 3,242
Other 7,862 6,865 14,566 13,462
Total non-interest expense 55,360 51,840 112,403 103,806
Income before income tax
expense 85,822 75,954 165,431 158,891
Income tax expense 28,321 25,065 54,517 51,605
Net income 57,501 50,889 110,914 107,286
Preferred dividends
declared - (1,500) - (3,000)
Net income available to
common shareholders $57,501 $49,389 110,914 $104,286
Basic earnings per common
share $0.79 $0.64 $1.51 $1.34
Diluted earnings per
common share $0.78 $0.64 $1.48 $1.33
Basic weighted
average common
shares 72,952,885 76,861,759 73,434,667 77,945,438
Diluted weighted average
common and common
equivalent shares 74,126,609 77,470,793 73,734,830 78,620,070
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,
2004 2003 2004 2003
Selected Returns and Financial
Ratios (annualized)
Return on average
stockholders' equity 16.55% 13.27% 15.85% 13.94%
Return on average
tangible stockholders'
equity (1) 19.09 15.09 18.27 15.84
Return on average assets 1.03 0.88 0.99 0.94
General and
administrative expense
to average assets 0.99 0.90 1.00 0.91
Efficiency ratio (2) 39.21 40.57 40.46 39.52
Net interest rate spread
(3) 2.06 1.72 2.06 1.87
Net interest margin (4) 2.13 1.78 2.14 1.93
Asset Quality Data (dollars
in thousands)
Non-performing
loans/total loans 0.21% 0.30%
Non-performing
loans/total assets 0.12 0.16
Non-performing
assets/total assets 0.12 0.16
Allowance for loan
losses/non-performing
loans 313.02 231.58
Allowance for loan
losses/non-accrual
loans 319.43 234.81
Allowance for loan
losses/total loans 0.66 0.69
Net charge-offs to
average loans outstanding
(annualized) 0.00% 0.00% 0.00 0.00
Non-performing assets $27,133 $36,588
Non-performing loans 26,458 36,009
Loans 90 days past
maturity but still
accruing interest 531 495
Non-accrual loans 25,927 35,514
Net charge-offs $148 $64 303 156
Capital Ratios (Astoria Federal)
Tangible 7.11% 7.59%
Core 7.11 7.59
Risk-based 14.69 16.13
Other Data
Cash dividends paid per
common share $0.25 $0.22 $0.50 $0.42
Dividend payout ratio 32.05% 34.38% 33.78% 31.58%
Stockholders' equity (in
thousands) $1,372,118 $1,527,615
Common stockholders'
equity (in thousands) 1,372,118 1,477,615
Book value per common
share (5) 19.01 19.49
Tangible book value per
common share (6) 16.44 17.05
Average equity/average
assets 6.21% 6.63% 6.25% 6.78%
Mortgage loans serviced
for others (in
thousands) $1,759,085 $2,219,352
Full time equivalent
employees 1,926 2,001
(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, 2004
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $8,862,057 $104,205 4.70%
Multi-family, commercial
real estate and construction 3,350,010 54,634 6.52
Consumer and other loans (1) 466,745 4,798 4.11
Total loans 12,678,812 163,637 5.16
Mortgage-backed securities
(2) 8,150,915 84,880 4.17
Other securities (2) (3) 342,206 3,824 4.47
Federal funds sold and
repurchase agreements 94,515 222 0.94
Total interest-earning assets 21,266,448 252,563 4.75
Goodwill 185,151
Other non-interest-earning
assets 938,614
Total assets $22,390,213
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $3,003,085 2,988 0.40
Money market 1,119,810 1,510 0.54
NOW and demand deposit 1,556,821 230 0.06
Certificates of deposit 6,018,057 52,174 3.47
Total deposits 11,697,773 56,902 1.95
Borrowed funds 8,989,389 82,345 3.66
Total interest-bearing
liabilities 20,687,162 139,247 2.69
Non-interest-bearing liabilities 312,905
Total liabilities 21,000,067
Stockholders' equity 1,390,146
Total liabilities and
stockholders' equity $22,390,213
Net interest income/net interest
rate spread $113,316 2.06%
Net interest-earning assets/net
interest margin $579,286 2.13%
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Three Months Ended June 30, 2003
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
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 1,284,181
Total assets $23,123,518
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 10,031,579 115,793 4.62
Total interest-bearing
liabilities 21,279,958 172,982 3.25
Non-interest-bearing liabilities 309,824
Total liabilities 21,589,782
Stockholders' equity 1,533,736
Total liabilities and
stockholders' equity $23,123,518
Net interest income/net interest
rate spread $96,251 1.72%
Net interest-earning assets/net
interest margin $374,228 1.78%
Ratio of interest-earning assets
to interest-bearing liabilities 1.02x
(1) Mortgage and consumer and other loans include 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, 2004
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
One-to-four family $8,951,550 $215,555 4.82%
Multi-family, commercial
real estate and construction 3,301,619 108,265 6.56
Consumer and other loans (1) 458,421 9,688 4.23
Total loans 12,711,590 333,508 5.25
Mortgage-backed securities (2) 8,154,913 171,753 4.21
Other securities (2) (3) 388,063 8,020 4.13
Federal funds sold and
repurchase agreements 79,704 376 0.94
Total interest-earning assets 21,334,270 513,657 4.82
Goodwill 185,151
Other non-interest-earning
assets 891,331
Total assets $22,410,752
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $2,981,642 5,933 0.40
Money market 1,153,993 3,118 0.54
NOW and demand deposit 1,511,777 451 0.06
Certificates of deposit 5,831,038 101,630 3.49
Total deposits 11,478,450 111,132 1.94
Borrowed funds 9,230,800 174,696 3.79
Total interest-bearing
liabilities 20,709,250 285,828 2.76
Non-interest-bearing liabilities 301,887
Total liabilities 21,011,137
Stockholders' equity 1,399,615
Total liabilities and
stockholders' equity $22,410,752
Net interest income/net interest
rate spread $227,829 2.06%
Net interest-earning assets/net
interest margin $625,020 2.14%
Ratio of interest-earning assets
to interest-bearing liabilities 1.03x
For the Six Months Ended June 30, 2003
Average
Average Yield/
Balance Interest Cost
(Annualized)
Assets:
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 1,257,074
Total assets $22,723,680
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 9,699,368 231,110 4.77
Total interest-bearing
liabilities 20,885,810 346,540 3.32
Non-interest-bearing liabilities 298,067
Total liabilities 21,183,877
Stockholders' equity 1,539,803
Total liabilities and
stockholders' equity $22,723,680
Net interest income/net interest
rate spread $205,259 1.87
Net interest-earning assets/net
interest margin $395,645 1.93
Ratio of interest-earning assets
to interest-bearing liabilities 1.02x
(1) Mortgage and consumer and other loans include 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- 07/22/2004
/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://ir.astoriafederal.com /
(AF)
CO: Astoria Financial Corporation
ST: New York
IN: FIN
SU: ERN CCA DIV