Exhibit 99.1
ASTORIA FINANCIAL CORPORATION TO RECORD OTHER-THAN-TEMPORARY IMPAIRMENT
IN FOURTH QUARTER RELATING TO FREDDIE MAC PREFERRED STOCK
LAKE SUCCESS, N.Y., Jan. 14 /PRNewswire-FirstCall/ -- Astoria Financial
Corporation ("Company") (NYSE: AF), the holding company for Astoria Federal
Savings and Loan Association, announced today that it intends to record an
other-than-temporary impairment non-cash after-tax charge of $9.6 million, or
$0.14 per diluted share, in the quarter ending December 31, 2004 related to $120
million face value of perpetual preferred stock issued by Freddie Mac, a
government sponsored entity. The perpetual preferred stock issues are investment
grade securities (AA- by S&P, Aa3 by Moody's) that are held in the Company's
available-for-sale securities portfolio. Prior to this charge, impairment was
recorded as an unrealized mark-to-market loss on securities available-for-sale
and reflected as a reduction to equity through other comprehensive income.
Accordingly, the reclassification of the unrealized after-tax loss to an
other-than-temporary impairment non-cash charge will not affect shareholders'
equity or related capital ratios. George L. Engelke, Jr., Chairman, President
and CEO of Astoria commented, "The decision to reclassify the unrealized
mark-to-market loss on these securities to an other-than-temporary impairment
charge is based on a very conservative interpretation of accounting literature
and does not reflect the expected long-term value of these investment grade
securities."
Astoria Financial Corporation, as previously announced, expects to report
fourth quarter and full year financial results on Thursday morning, January 20,
2005. Fourth quarter 2004 diluted earnings per share, absent this charge, are
expected to be within a range of between $0.83 - $0.85. Including this charge,
under generally accepted accounting principles, fourth quarter diluted earnings
per share are expected to be within a range of between $0.69 - $0.71.
Astoria Financial Corporation, the holding company for Astoria Federal
Savings and Loan Association, with assets of $22.8 billion is the fifth largest
thrift institution in the United States. Established in 1888, Astoria Federal is
the largest thrift depository headquartered in New York with deposits of $12.2
billion and embraces its philosophy of Putting people first by providing the
customers and 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 fourth 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 twenty-four 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 or affect the value of our investments; 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.
SOURCE Astoria Financial Corporation
-0- 01/14/2005
/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
http://www.astoriafederal.com /
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