EXHIBIT 99.1
ASTORIA FINANCIAL
[LOGO] -----------------
CORPORATION
One Astoria Federal Plaza, Lake Success, NY 11042-1085 (516) 327-3000
NEWS
RELEASE
Contact: Peter J. Cunningham
Vice President
Investor Relations
(516) 327-7877
FOR IMMEDIATE RELEASE
ASTORIA FINANCIAL CORPORATION REPORTS SECOND QUARTER EARNINGS OF $0.85 PER
SHARE (CASH EARNINGS OF $1.22 PER SHARE)
Record Mortgage Loan Production Totals $555.2 Million
Quarterly Cash Dividend of $0.20 Per Share Declared
Lake Success, New York - July 16, 1998 -- Astoria Financial Corporation
(Nasdaq:ASFC), the holding company for Astoria Federal Savings and Loan
Association, today reported diluted earnings per common share of $0.85 for the
second quarter ended June 30, 1998, a 14.9% increase from diluted earnings per
common share of $0.74 for the 1997 second quarter. For the six months ended June
30, 1998, diluted earnings per common share increased 11.5%, to $1.65 from $1.48
for the comparable 1997 period.
Astoria Financial's net income increased 55.6% to $23.7 million for the
quarter ended June 30, 1998 from $15.2 million for the 1997 second quarter. Net
income for the six months ended June 30, 1998 increased 49.9%, to $45.9 million
from $30.6 million for the first half of 1997.
Commenting on the second quarter results, George L. Engelke, Jr., Chairman,
President and Chief Executive Officer of Astoria, said, "Our earnings momentum
is continuing as evidenced by the double-digit growth in both earnings per share
and net income reported for the second quarter and six months ended June 30,
1998."
Cash Earnings and Related Returns
Cash earnings, which represent the amount by which tangible equity changes
each period due to operating results, include reported earnings plus the
non-cash charges for goodwill
1
amortization and amortization relating to certain employee stock plans and
related tax benefit. Tangible equity generation, or cash earnings, measures
Astoria's financial capacity for growth and/or payment of dividends. Cash
earnings increased tangible equity in the 1998 second quarter by $33.4 million,
or 41.3% more than reported earnings would indicate.
Cash earnings available to common shareholders were $31.9 million, or $1.22
diluted earnings per common share, for the 1998 second quarter, an increase of
50.3% and 18.4%, respectively, over the $21.2 million, or $1.03 diluted earnings
per common share reported for the 1997 second quarter. For the six months ended
June 30, 1998, cash earnings available to common shrareholders were $62.9
million, or $2.41 diluted per common share, an increase of 47.4% and 17.0%,
respectively, over the $42.6 million, or $2.06 diluted earnings per common share
for the comparable 1997 period.
The cash returns on average tangible equity for the second quarter and six
months ended June 30, 1998 were 19.86% and 19.87%, respectively, versus 17.23%
and 17.37%, respectively, for the comparable 1997 periods. The cash returns on
average assets for the second quarter and six months ended June 30, 1998 were
both 1.19%, versus 1.10% and 1.13%, respectively, for the comparable 1997
periods.
Board Declares Quarterly Cash Dividend
The Board of Directors, at their July 15, 1998 meeting, declared a
quarterly cash dividend of $0.20 per common share. The dividend will be payable
on September 1, 1998 to shareholders of record at the close of business on
August 14, 1998. This is the thirteenth consecutive quarterly cash dividend
declared by the Company.
1998 Second Quarter and Six Month Earnings Summary
Net interest income for the second quarter of 1998 increased 43.2% to $70.8
million, from $49.4 million for the 1997 second quarter. For the six months
ended June 30, 1998, net interest income increased 42.2% to $140.7 million, from
$98.9 million for the first six months of 1997. The three and six-month
increases are primarily attributable to the growth in average interest-earning
assets, primarily mortgage loans and mortgage-backed securities, and the
acquisition of The Greater New York Savings Bank ("The Greater") following the
close of business on September 30, 1997.
Astoria's net interest margin was 2.64% and 2.68% for the quarter and six
months ended June 30, 1998, respectively, compared to 2.62% and 2.70%,
respectively, for the comparable 1997 periods. On a linked quarter basis the
1998 second quarter net interest margin was eight basis points lower than the
1998 first quarter, of which five basis points were attributable to one
additional day of interest expense in the second quarter.
The provision for loan losses for the quarter and six months ended June 30,
1998 was $314,000 and $614,000, respectively, compared to $1.4 million and $1.9
million for the comparable 1997 periods. The decreases in the provisions were
due primarily to the increased coverage ratios. Please see page 9.
Non-interest income for the quarter ended June 30, 1998, excluding net
gains on sales of
2
securities and loans, increased 60.7% to $5.7 million from $3.5 million for the
comparable quarter of 1997. Non- interest income for the first half of 1998,
excluding net gains on sales of securities and loans, increased 65.4% to $10.9
million from $6.6 million for the comparable 1997 period. The increases are
primarily attributable to the acquisition of The Greater. The net gain on sales
of securities and loans for the quarter and six months ended June 30, 1998
totaled $3.3 million and $5.4 million, respectively, compared to $1.1 million
and $1.5 million, respectively, for the comparable 1997 periods.
Total non-interest expense increased to $37.5 million for the quarter ended
June 30, 1998 from $26.5 million for the 1997 second quarter and increased to
$75.7 million for the first half of 1998 from $52.6 million for the first half
of 1997. The increases were due primarily to the addition of The Greater's
operations, a $2.8 million quarterly increase in amortization of goodwill
related to the acquisition of The Greater and increased ESOP/RRP expense, due to
an increase in the Company's common stock price. For the quarter and six months
ended June 30, 1998, total non-interest expense, excluding the amortization of
goodwill and amortization of ESOP/RRP stock ("cash non-interest expense")
increased $7.5 million to $28.8 million and $15.6 million to $57.8 million,
respectively.
General and administrative expense ("G&A"), excluding non-cash amortization
expense relating to ESOP/RRP stock ("cash G&A"), for the quarter and six months
ended June 30, 1998, totaled $28.6 million and $57.6 million, respectively,
compared to $21.0 million and $41.7 million, respectively, for the comparable
1997 periods. Importantly, Astoria's ratio of cash G&A expense to average assets
decreased to 1.01% and 1.04%, for the quarter and six month periods ended June
30, 1998, from 1.09% and 1.10%, respectively, for the comparable periods last
year. The cash efficiency ratios for the quarter and first half of 1998 were
37.36% and 38.00%, respectively, compared to 39.59% and 39.50%, respectively,
for the comparable 1997 periods. Mr. Engelke commented, "The continuing downward
trend in these very important operating ratios is evidence of our focus on
efficiency and our ability to drive efficiency through acquisitions."
Balance Sheet Summary
Total assets at June 30, 1998 increased to $11.6 billion, or 9.9% from
December 31, 1997, and 6.2% from the $10.9 billion total reported at March 31,
1998. The increase in assets was due primarily to the increases in the mortgage
loan and mortgage backed securities portfolios which were funded primarily
through medium and long-term borrowings.
Mortgage lending activity for the three and six month periods ended June
30, 1998, as detailed in the table below, increased 38.8% and 78.4% ,
respectively, over the comparable periods a year ago and was concentrated in
one-to-four family mortgage loans. Loan prepayments in the 1998 second quarter
totaled $203.9 million compared to $162.9 million in the 1998 first quarter.
3
Mortgage Loan Production
Three Months Ended Three Months Ended
June 30, 1998 June 30, 1997
Delivery Channel:
Broker $ 375.7 million $227.1 million
Retail 136.5 million 111.5 million
Third Party 43.0 million 61.2 million
---------------- --------------
Total $ 555.2 million $399.8 million
Six Months Ended Six Months Ended
June 30, 1998 June 30, 1997
Delivery Channel:
Broker $ 745.7 million $350.6 million
Retail 245.8 million 162.3 million
Third Party 96.9 million 97.0 million
---------------- --------------
Total $1,088.4 million $609.9 million
Commenting on the loan growth, Mr. Engelke said, "We continued to enjoy
record mortgage loan production in the second quarter due to the success of our
retail and broker lending programs coupled with significant refinancing activity
during the quarter. Over 92%, or $512.2 million of our second quarter mortgage
loan production was originated by Astoria through our retail and broker
network."
Loans, net, increased $248.1 million, or 5.4% from March 31, 1998 and
$548.1 million, or 12.7% from December 31, 1997. The increases were concentrated
in one-to-four family mortgage loans. While the loan portfolio continued to grow
in the second quarter, non-performing assets declined to $52.4 million, or 0.45%
of total assets at June 30, 1998, from $58.8 million, or 0.54% of total assets
at March 31, 1998.
Deposits at June 30, 1998 totaled $6.1 billion compared to $6.2 billion at
March 31, 1998. Importantly, core deposits, including passbook savings, checking
and money market accounts, increased 2.9% during the second quarter to 47.0% of
total deposits from 44.9% at the end of the first quarter. Borrowings increased
$746.7 million in the second quarter, primarily medium and long-term, and
totaled $4.4 billion at June 30, 1998.
At June 30, 1998, the cumulative one-year interest rate sensitivity gap was
positive 4.82% compared to negative 4.07% at June 30, 1997.
Stockholders' equity was $942.5 million, or 8.1% of total assets, at June
30, 1998 compared to $916.8 million, or 8.4% of total assets, at March 31, 1998.
Astoria Federal continues to maintain capital ratios in excess of regulatory
requirements. At June 30, 1998, core, tangible and risk-based capital ratios
were 5.39%, 5.39% and 14.92%, respectively.
4
Astoria's Pending Acquisition of Long Island Bancorp, Inc.
Astoria Financial Corporation announced on April 3, 1998, that it had
entered into a definitive agreement pursuant to which Astoria will acquire Long
Island Bancorp, Inc. (Nasdaq: LISB), a thrift institution with $6.3 billion in
assets, $3.8 billion in deposits and 35 retail banking offices throughout
Queens, Nassau and Suffolk counties. The Bank also operates mortgage loan
production offices across Long Island and in New Jersey, Pennsylvania, Maryland,
Virginia, North Carolina, South Carolina and Georgia. The transaction, subject
to regulatory approvals and approval by the shareholders of both Astoria
Financial Corporation and Long Island Bancorp, Inc., is anticipated to close at
the end of the third quarter.
Astoria Financial Corporation is the holding company for Astoria Federal
Savings and Loan Association. With assets of $11.6 billion, Astoria Financial is
the third largest publicly traded thrift institution in New York and eighth
nationally. Established in 1888, Astoria Federal operates sixty-one retail
banking offices and provides retail banking, mortgage and consumer loan services
to over 390,000 customers.
Note: Astoria Financial Corporation's news releases are available at no
charge by fax through PR Newswire's "Company News on Call" at (800) 758-5804,
extension 104529 or may be accessed on the Internet, web site:
http://www.prnewswire.com
This release may contain certain forward-looking statements which are based on
management's current expectations regarding economic, legislative, and
regulatory issues that may impact the Company's earnings in future periods.
Factors that could cause future results to vary materially from current
management expectations include, but are not limited to, general economic
conditions, changes in interest rates, deposit flows, real estate values, and
competition; changes in accounting principles, policies, or guidelines; changes
in legislation or regulation; and other economic, competitive, governmental,
regulatory and technological factors affecting the Company's operations,
pricing, products, and services.
Tables Follow
# # #
5
Page 6
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In Thousands, Except Share Data)
June 30, December 31,
1998 1997
------------ ------------
ASSETS
Cash and due from banks $ 23,120 $ 31,780
Federal funds sold and repurchase agreements 161,704 110,550
Mortgage-backed securities available-for-sale (at estimated fair value) 3,174,963 2,700,920
Other securities available-for-sale (at estimated fair value) 270,363 159,336
Mortgage-backed securities held-to-maturity
(estimated fair value of $1,312,092 and $1,369,738, respectively) 1,300,542 1,361,404
Other securities held-to-maturity (estimated fair value of
$1,186,390 and $1,255,097, respectively) 1,179,347 1,249,045
Federal Home Loan Bank of New York stock 73,750 60,050
Loans receivable:
Mortgage loans, net 4,841,571 4,291,720
Consumer and other loans 49,401 53,286
------------ ------------
4,890,972 4,345,006
Less allowance for loan losses 37,861 40,039
------------ ------------
Loans receivable, net 4,853,111 4,304,967
Real estate owned and investments in real estate, net 11,763 16,264
Accrued interest receivable 62,758 60,318
Premises and equipment, net 116,036 113,727
Goodwill 253,043 258,159
Other assets 95,051 101,873
------------ ------------
TOTAL ASSETS $ 11,575,551 $ 10,528,393
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 6,092,713 $ 6,220,918
Reverse repurchase agreements 4,120,000 2,882,765
Federal Home Loan Bank of New York advances 270,114 390,016
Mortgage escrow funds 55,994 45,217
Accrued expenses and other liabilities 94,254 90,053
------------ ------------
TOTAL LIABILITIES 10,633,075 9,628,969
------------ ------------
Stockholders' equity:
Preferred stock, $1.00 par value; 5,000,000 shares authorized:
Series A (325,000 shares authorized and -0- 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 and 70,000,000 shares
authorized, respectively; 26,531,645 and 26,451,252 issued,
respectively; 26,530,706 and 26,197,768 outstanding, respectively) 265 265
Additional paid-in capital 509,479 497,284
Retained earnings - substantially restricted 445,399 430,549
Treasury stock (939 and 253,484 shares, at cost, respectively) (53) (13,867)
Accumulated other comprehensive income:
Net unrealized gains on securities, net of taxes 7,099 7,918
Unallocated common stock held by ESOP (19,988) (21,488)
Unearned common stock held by RRPs (1,725) (3,237)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 942,476 899,424
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,575,551 $ 10,528,393
============ ============
Page 7
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- -------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
Interest income:
Mortgage loans $ 89,815 $ 56,831 $ 174,607 $ 109,385
Consumer and other loans 1,187 1,404 2,415 2,850
Mortgage-backed securities 71,341 56,536 141,199 115,461
Other securities 26,405 16,662 53,963 31,942
Federal funds sold and repurchase agreements 3,060 3,979 4,554 4,847
----------- ----------- ----------- -----------
Total interest income 191,808 135,412 376,738 264,485
----------- ----------- ----------- -----------
Interest expense:
Deposits 63,282 48,935 127,277 96,494
Borrowed funds 57,718 37,032 108,793 69,090
----------- ----------- ----------- -----------
Total interest expense 121,000 85,967 236,070 165,584
----------- ----------- ----------- -----------
Net interest income 70,808 49,445 140,668 98,901
Provision for loan losses 314 1,414 614 1,914
----------- ----------- ----------- -----------
Net interest income after provision for loan losses 70,494 48,031 140,054 96,987
----------- ----------- ----------- -----------
Non-interest income:
Customer service and loan fees 4,316 2,620 8,093 5,235
Net gain on sales of securities and loans 3,324 1,138 5,427 1,516
Other 1,344 903 2,853 1,381
----------- ----------- ----------- -----------
Total non-interest income 8,984 4,661 16,373 8,132
----------- ----------- ----------- -----------
Non-interest expense:
General and administrative:
Compensation and benefits 13,805 9,965 27,375 20,077
Employee stock plans amortization expense 3,862 3,156 8,201 6,208
Occupancy, equipment and systems 8,623 5,919 18,380 11,917
Federal deposit insurance premiums 976 762 1,752 1,572
Advertising 732 1,146 1,392 2,060
Other 4,433 3,178 8,700 6,051
----------- ----------- ----------- -----------
Total general and administrative 32,431 24,126 65,800 47,885
Real estate operations and provision for losses, net 218 306 218 482
Amortization of goodwill 4,865 2,110 9,653 4,220
----------- ----------- ----------- -----------
Total non-interest expense 37,514 26,542 75,671 52,587
----------- ----------- ----------- -----------
Income before income tax expense 41,964 26,150 80,756 52,532
Income tax expense 18,301 10,943 34,824 21,891
----------- ----------- ----------- -----------
NET INCOME 23,663 15,207 45,932 30,641
----------- ----------- ----------- -----------
Preferred dividends declared 1,500 -- 3,000 --
----------- ----------- ----------- -----------
Net income available to common shareholders $ 22,163 $ 15,207 $ 42,932 $ 30,641
=========== =========== =========== ===========
Basic earnings per common share (1) $ 0.89 $ 0.79 $ 1.73 $ 1.59
=========== =========== =========== ===========
Diluted earnings per common share (1) $ 0.85 $ 0.74 $ 1.65 $ 1.48
=========== =========== =========== ===========
Basic weighted average common shares (1) 24,856,243 19,205,852 24,746,998 19,311,107
Diluted weighted average common and common
equivalent shares (1) 26,111,418 20,545,394 26,079,264 20,683,968
(1) Prior year amounts have been restated as a result of the implementation of
Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
("SFAS No. 128").
Page 8
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED SCHEDULE OF CASH EARNINGS
(In Thousands, Except Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
1998 1997 1998 1997
------- ------- ------- -------
Net Income $23,663 $15,207 $45,932 $30,641
Add back:
Employee stock plans amortization expense 3,862 3,156 8,201 6,208
Amortization of goodwill 4,865 2,110 9,653 4,220
Income tax benefit on amortization expense of
earned portion of RRP stock 1,038 766 2,076 1,573
------- ------- ------- -------
Cash Earnings 33,428 21,239 65,862 42,642
------- ------- ------- -------
Preferred dividends declared 1,500 -- 3,000 --
------- ------- ------- -------
Cash earnings available to common shareholders $31,928 $21,239 $62,862 $42,642
======= ======= ======= =======
Basic earnings per common share (1) $ 1.28 $ 1.11 $ 2.54 $ 2.21
======= ======= ======= =======
Diluted earnings per common share (1) $ 1.22 $ 1.03 $ 2.41 $ 2.06
======= ======= ======= =======
(1) Based on the weighted average shares used to calculate earnings per share
on the Consolidated Statements of Operations. Prior year amounts have been
restated as a result of the implementation of SFAS No. 128.
Page 9
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARY
SELECTED FINANCIAL RATIOS AND OTHER DATA
At or For the At or For the
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
1998 1997 1998 1997
----- ----- ---- -----
(Annualized) (Annualized)
Selected Financial & Market Data
Return on average stockholders' equity 10.18% 10.30% 9.99% 10.40%
Cash return on average stockholders' equity(1) 14.39 14.39 14.33 14.47
Return on average common stockholders' equity 10.08 10.30 9.88 10.40
Cash return on average common stockholders' equity(1) 14.52 14.39 14.46 14.47
Return on average tangible stockholders' equity 14.06 12.33 13.86 12.48
Cash return on average tangible stockholders' equity(1) 19.86 17.23 19.87 17.37
Return on average assets 0.84 0.79 0.83 0.81
Cash return on average assets(1) 1.19 1.10 1.19 1.13
Net interest spread 2.31 2.23 2.36 2.35
Net interest margin 2.64 2.62 2.68 2.70
General and administrative expenses
to average assets 1.15 1.25 1.19 1.27
Cash general and administrative expenses
to average assets(2) 1.01 1.09 1.04 1.10
Efficiency ratio 42.41 45.55 43.41 45.38
Cash efficiency ratio(2) 37.36 39.59 38.00 39.50
Cash dividends paid per common share $ 0.20 $ 0.15 $ 0.40 $ 0.26
Book value per common share 33.64 28.59
Tangible book value per common share 24.10 24.01
Asset Quality Ratios
Non-performing loans/total loans 0.84% 0.94%
Non-performing loans/total assets 0.35 0.38
Non-performing assets/total assets 0.45 0.51
Allowance for loan losses/non-performing loans 93.12 51.74
Allowance for loan losses/non-accrual loans 119.05 62.53
Allowance for loan losses/total loans 0.78 0.48
Capital Ratios (Astoria Federal)
Tangible 5.39% 5.69%
Core 5.39 5.69
Risk-based 14.92 15.98
Other Data
(Dollars in Millions)
Average equity/average assets 8.24% 7.64% 8.33% 7.81%
Average tangible equity/average tangible assets 6.11 6.47 6.15 6.59
Cumulative one year interest - sensitivity gap 4.82 (4.07)
Cumulative one year interest - sensitivity gap (3) 21.74 11.39
Non-performing assets $ 52 $ 39
Non-performing loans 41 29
90 days past maturity but still accruing 9 5
Non-accrual loans 32 24
(1) Excluding non-cash charge for amortization of goodwill, employee stock
plans and related tax benefit.
(2) Excluding non-cash charge for amortization of employee stock plans.
(3) Assumes available-for-sale portfolio categorized within the one year
maturing or repricing category.
Page 10
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARY
AVERAGE BALANCE SHEET
Three Months Ended June 30,
-------------------------------------------------------------------------------------
1998 1997
--------------------------------------- ------------------------------------------
Average Average
Average Yield/ Average Yield/
(Dollars in Thousands) Balance Interest Cost Balance Interest Cost
- ------------------------------------------------------------------------------------------------------------------------------------
Assets: (Annualized)
Interest-earning assets:
Mortgage loans $ 4,730,204 $ 89,815 7.60% $ 2,865,678 $ 56,831 7.93%
Consumer and other loans 50,847 1,187 9.34 57,138 1,404 9.83
Mortgage-backed securities (1) 4,264,573 71,341 6.69 3,364,564 56,536 6.72
Other securities (1) 1,478,334 26,405 7.14 975,430 16,662 6.83
Federal funds sold and
repurchase agreements 215,902 3,060 5.67 287,357 3,979 5.54
----------- ----------- ----------- -----------
Total interest-earning assets 10,739,860 191,808 7.14 7,550,167 35,412 7.17
----------- -----------
Non-interest-earning assets 533,818 170,284
----------- -----------
Total assets $11,273,678 $ 7,720,451
=========== ===========
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $ 1,707,314 $ 10,884 2.55% $ 1,125,850 $ 7,121 2.53%
Certificates of deposit 3,297,075 44,093 5.35 2,731,311 37,253 5.46
NOW 90,823 284 1.25 40,320 126 1.25
Money market 598,921 7,217 4.82 336,522 3,870 4.60
Money manager 257,103 804 1.25 209,259 565 1.08
Borrowed funds 4,060,028 57,718 5.69 2,518,102 37,032 5.88
----------- ----------- ----------- -----------
Total interest-bearing liabilities 10,011,264 121,000 4.83 6,961,364 85,967 4.94
----------- -----------
Non-interest-bearing liabilities 332,984 168,806
----------- -----------
Total liabilities 10,344,248 7,130,170
Stockholders' equity 929,430 590,281
----------- -----------
Total liabilities and stockholders' equity $11,273,678 $ 7,720,451
=========== ===========
Net interest income/net interest
rate spread (2) $ 70,808 2.31% $ 49,445 2.23%
=========== ==== =========== ====
Net interest earning assets/net
interest margin (3) $ 728,596 2.64% $ 588,803 2.62%
=========== ==== =========== ====
Ratio of interest-earning assets
to interest-bearing liabilities 1.07x 1.08x
=========== ===========
(1) Securities available-for-sale are reported at average amortized cost.
(2) 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.
(3) Net interest margin represents net interest income divided by average
interest-earning assets.
Page 11
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARY
AVERAGE BALANCE SHEET
Six Months Ended June 30,
-------------------------------------------------------------------------------------
1998 1997
--------------------------------------- ------------------------------------------
Average Average
Average Yield/ Average Yield/
(Dollars in Thousands) Balance Interest Cost Balance Interest Cost
- ------------------------------------------------------------------------------------------------------------------------------------
Assets: (Annualized)
Interest-earning assets:
Mortgage loans $ 4,573,383 $ 174,607 7.64% $ 2,763,686 $ 109,385 7.92%
Consumer and other loans 51,917 2,415 9.30 57,534 2,850 9.91
Mortgage-backed securities (1) 4,215,532 141,199 6.70 3,396,579 115,461 6.80
Other securities (1) 1,495,507 53,963 7.22 926,397 31,942 6.90
Federal funds sold and
repurchase agreements 162,371 4,554 5.61 177,317 4,847 5.47
----------- ----------- ----------- -----------
Total interest-earning assets 10,498,710 376,738 7.18 7,321,513 264,485 7.22
----------- -----------
Non-interest-earning assets 537,584 223,812
----------- -----------
Total assets $11,036,294 $ 7,545,325
=========== ===========
Liabilities and stockholders' equity:
Interest-bearing liabilities:
Savings $ 1,705,501 $ 21,745 2.55% $ 1,128,860 $ 14,280 2.53%
Certificates of deposit 3,369,520 89,838 5.33 2,727,418 73,934 5.42
NOW 86,354 540 1.25 55,512 347 1.25
Money market 564,777 13,555 4.80 304,769 6,751 4.43
Money manager 255,772 1,599 1.25 212,942 1,182 1.11
Borrowed funds 3,811,478 108,793 5.71 2,368,845 69,090 5.83
----------- ----------- ----------- -----------
Total interest-bearing liabilities 9,793,402 236,070 4.82 6,798,346 165,584 4.87
----------- -----------
Non-interest-bearing liabilities 323,617 157,689
----------- -----------
Total liabilities 10,117,019 6,956,035
Stockholders' equity 919,275 589,290
----------- -----------
Total liabilities and stockholders' equity $11,036,294 $ 7,545,325
=========== ===========
Net interest income/net interest
rate spread (2) $ 140,668 2.36% $ 98,901 2.35%
=========== ==== =========== ====
Net interest earning assets/net
interest margin (3) $ 705,308 2.68% $ 523,167 2.70%
=========== ==== =========== ====
Ratio of interest-earning assets
to interest-bearing liabilities 1.07x 1.08x
=========== ===========
(1) Securities available-for-sale are reported at average amortized cost.
(2) 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.
(3) Net interest margin represents net interest income divided by average
interest-earning assets.