Astoria Financial Corporation Reports First Quarter Earnings Per Share of $0.11

Apr 18, 2012, 16:54 ET from Astoria Financial Corporation

LAKE SUCCESS, N.Y., April 18, 2012 /PRNewswire/ -- Astoria Financial Corporation (NYSE: AF) ("Astoria", the "Company"), the holding company for Astoria Federal Savings and Loan Association ("Astoria Federal"), today reported net income of $10.0 million, or $0.11 diluted earnings per share ("diluted EPS") for the quarter ended March 31, 2012 compared to net income of $27.4 million, or $0.29 diluted EPS, for the quarter ended March 31, 2011.  The quarter ended March 31, 2012 includes net charges totaling $3.4 million ($2.2 million, or $0.02 per share, after-tax), representing severance related expenses associated with cost control initiatives implemented in the 2012 first quarter. 

Commenting on the first quarter results, Monte N. Redman, President and Chief Executive Officer of Astoria, stated, "I am pleased to report robust multi-family/commercial real estate ("MF/CRE") lending in the first quarter which fueled growth in the loan portfolio, the first such growth in several years.  The strength of the MF/CRE loan production, as reflected in the significant increase in the loan pipeline since year-end, has exceeded our expectations and reinforces our confidence that MF/CRE lending will be an important contributor to growth in interest earning assets during the year, driving earnings growth and improved overall profitability." 

First Quarter Financial Highlights

  • Low cost savings, money market and checking account deposits increased $176.1 million, or 12% annualized, from December 31, 2011 to $5.9 billion, or 53% of total deposits.
  • Early stage loan delinquencies (30-89 days) declined $52.2 million, or 24%, from December 31, 2011 to $163.3 million.  
  • Total loan delinquencies (30 days or more past due) and real estate owned, net, declined $37.6 million, or 6%, from December 31, 2011 to $558.8 million.
  • MF/CRE loan originations totaled $344.3 million, up 70% from the 2011 fourth quarter.
  • MF/CRE loan pipeline increased 101% from December 31, 2011 to $798.6 million.

Board Declares Quarterly Cash Dividend of $0.04 Per Share  The Board of Directors of the Company, at its April 18, 2012 meeting, declared a quarterly cash dividend of $0.04 per common share.  The dividend is payable on June 1, 2012 to shareholders of record as of May 15, 2012.  This is the sixty-eighth consecutive quarterly cash dividend declared by the Company.

Commenting on the dividend action, Mr. Redman stated, "The Board's decision to reduce the dividend is based on, among other things, the current payout ratio in relation to current earnings and the desire to bring the payout ratio and dividend yield more in line with norms in the financial industry.  In addition, the Board believes this action will provide management with added flexibility to redeploy capital to support future loan and balance sheet growth in light of the opportunities available in multi-family lending, which has demonstrated better than expected strength."   

First Quarter Earnings Summary Net interest income for the quarter ended March 31, 2012 totaled $88.2 million compared to $87.5 million for the previous quarter and $101.5 million for the 2011 first quarter.  The net interest margin for the quarter ended March 31, 2012 was 2.20%, unchanged from the previous quarter and 20 basis points lower than the 2011 first quarter.  The year over year declines were due primarily to a more rapid decline in the yield on average interest earning assets than the cost of interest bearing liabilities during 2011. 

For the quarter ended March 31, 2012, a $10.0 million provision for loan losses was recorded, the same amount as in the previous quarter and up from the $7.0 million provision recorded for the 2011 first quarter.  The ratio of the allowance for loan losses to total loans, or the coverage ratio, at 1.12% at March 31, 2012, remains strong.

Non-interest income for the quarter ended March 31, 2012 totaled $19.6 million compared to $17.3 million for the previous quarter and $18.0 million for the 2011 first quarter.  The linked quarter and year over year increases are primarily due to a gain on sales of securities for the 2012 first quarter.  In addition, other non-interest income increased and customer service fees and mortgage banking income, net, declined for the 2012 first quarter compared to the 2011 first quarter. 

General and administrative ("G&A") expense for the quarter ended March 31, 2012 totaled $82.2 million compared to $77.2 million for the previous quarter and $69.6 million for the 2011 first quarter.  The linked quarter increase of $5.0 million is due primarily to increased compensation and benefits expense, resulting from net charges of $3.4 million representing severance related expenses and an increase of $1.7 million in pension and other post-retirement benefits expense.  The year over year increase of $12.6 million is due to a $5.7 million increase in FDIC expense and a $5.6 million increase in compensation and benefits expense, primarily due to the severance and pension and other post-retirement benefits expense noted above. 

Expense Control Initiatives Commenting on G&A expenses, Mr. Redman noted, "During the first quarter, we completed the cost control initiatives announced earlier this year which were necessary to significantly slow the growth of G&A expenses in 2012 and beyond.  In addition to the salary freeze for executive and senior officers and the elimination of stock-based compensation awards for 2012 announced in January, the Company completed a review of staffing levels in February which resulted in the elimination of 142 positions.  In addition, effective April 30, 2012, we will implement a freeze in all defined benefit pension programs.  As a result of these actions, we expect the second quarter G&A expense will return to a more normal run rate of approximately $75.0 million per quarter with the exception of a one-time additional expense of approximately $2.0 million, expected to be recorded in the second half of 2012, related to the settlement of employment agreements associated with previously announced executive retirements."

Balance Sheet Summary Total assets increased slightly from December 31, 2011 and totaled $17.1 billion at March 31, 2012.  The loan portfolio increased $106.0 million from December 31, 2011 and totaled $13.4 billion at March 31, 2012.  Commenting on the loan and balance sheet growth, Mr. Redman stated, "As anticipated, the balance sheet expanded in the first quarter and the loan portfolio grew for the first time in several years, fueled by growth in the MF/CRE portfolios. With the MF/CRE lending now operating at full throttle, as evidenced by the $1.1 billion of MF/CRE loan applications taken in the last six months, the closing of more than $540 million of loans during the same period and the strong MF/CRE loan pipeline which totaled almost $800 million at March 31, 2012, we expect continued growth in the MF/CRE portfolios which should lead to consistent balance sheet growth going forward."       

The one-to-four family (residential) loan portfolio decreased $16.2 million from December 31, 2011 to $10.5 billion at March 31, 2012.  For the quarter ended March 31, 2012, residential loan originations for portfolio totaled $880.4 million compared to $707.4 million for the comparable 2011 period.  The loan-to-value ratio of the residential loan production for portfolio for the 2012 first quarter averaged approximately 59% at origination and the loan amount averaged approximately $747,000.  Residential loan prepayments for the quarter ended March 31, 2012 totaled $766.7 million, a 23% decline from the previous quarter and down from $786.2 million for the comparable 2011 period.  "Although residential loan prepayments decreased from the previous quarter, they remain at elevated levels.  Importantly, they have not accelerated despite the low mortgage rate environment, which has helped stem the decline in the residential loan portfolio," Mr. Redman noted.  At March 31, 2012, the residential loan pipeline totaled $1.1 billion.  

The combined MF/CRE portfolio increased $129.6 million, or 22% on an annualized basis, from December 31, 2011 to $2.5 billion at March 31, 2012.  For the quarter ended March 31, 2012, MF/CRE loan originations totaled $344.3 million with loan-to-value ratios averaging approximately 52% at origination.  There were no multi-family/CRE loans originated in the 2011 first quarter.  MF/CRE loan prepayments for the quarter ended March 31, 2012 totaled $192.3 million compared to $193.1 million for the comparable 2011 period.  At March 31, 2012, the MF/CRE pipeline totaled $798.6 million.

The securities portfolio remained essentially unchanged from December 31, 2011 and totaled $2.5 billion at March 31, 2012.  The Company expects to maintain the securities portfolio at current levels throughout 2012.    

Deposits decreased $133.0 million from December 31, 2011 to $11.1 billion at March 31, 2012.  The decrease was entirely the result of a $309.1 million decrease in certificate of deposits, as the Bank reflected  an increase of $176.1 million in low-cost savings, money market and checking accounts, which totaled $5.9 billion, or 53% of total deposits at March 31, 2012. 

Stockholders' equity increased $19.1 million to $1.3 billion, or 7.42% of total assets, at March 31, 2012.  Astoria Federal continues to be designated as well-capitalized with leverage, tangible, risk-based and Tier 1 risk-based capital ratios of 8.75%, 8.75%, 16.19% and 14.92%, respectively, at March 31, 2012.

Asset Quality Non-performing loans ("NPLs"), including troubled debt restructurings ("TDRs") of $43.5 million, totaled $355.6 million, or 2.08% of total assets, at March 31, 2012, an increase of $22.7 million from the previous quarter, due primarily to an increase in TDRs.  Residential NPLs totaled $312.2 million, MF/CRE NPLs totaled $36.9 million and consumer and other NPLs totaled $6.4 million at March 31, 2012 compared to $317.9 million, $8.9 million and $6.1 million, respectively, at December 31, 2011.  Of the $312.2 million of residential NPLs, $258.4 million, or 83%, represent residential loans which, at 180 days delinquent and annually thereafter, were reviewed and charged-off, as needed, to the estimated fair value of the underlying collateral at such time, less estimated selling costs.

 

The following table illustrates loan migration trends from 30 days delinquent to 90 days and over delinquent:

($ in millions)

30-59 Days Past Due

60-89 Days Past Due

Combined

30-89 Days Past Due

 

Change from

Previous Quarter

90 + Days

Past Due (NPLs) (1)

Total 30+

 Days Past Due

At March 31, 2011

$155.0

$  62.2

$217.2

$  (2.9)

$373.8

$591.0

At June 30, 2011

$162.8

$  44.4

$207.2

$ (10.0)

$376.3

$583.5

At Sept. 30, 2011

$143.8

$  44.7

$188.5

$ (18.7)

$380.0

$568.5

At Dec. 31, 2011

$166.7

$  48.8

$215.5

$   27.0

$332.9

$548.4

At March 31, 2012

$121.8

$  41.5

$163.3

$ (52.2)

$355.6

$518.9

(1) Includes TDRs

The table below details, as of March 31, 2012, the ten largest concentrations by state of residential loans and the respective non-performing loan totals in those states.  More comprehensive state details are included in the "One-to-Four Family Residential Loan Portfolio-Geographic Analysis" table included in this release.  

 ($ in millions)

State

Total Residential Loans

% of Total Residential Portfolio

Total Residential NPLs

NPLs as %

of State Total

New York

$3,001.5

28.5%

$44.6

1.49%

Illinois

$1,209.7

11.4%

$46.4

3.84%

Connecticut

$1,123.6

10.7%

$29.9

2.66%

Massachusetts

$  821.9

7.8%

$11.0

1.34%

New Jersey

$  753.6

7.1%

$57.4

7.62%

California

$  663.8

6.3%

$29.2

4.40%

Virginia

$  634.9

6.0%

$11.8

1.86%

Maryland

$  611.0

5.8%

$39.3

6.43%

Washington

$  300.8

2.9%

$ 3.5

1.16%

Texas

$  262.7

2.5%

$ 0.0

0.0%

Top 10 States

$ 9,383.5

89.0%

$273.1

2.91%

All other states (1,2)

$ 1,161.9

11.0%

$  39.1

3.37%

Total Residential Portfolio

$10,545.4

100%

$312.2

2.96%

(1) Includes 25 states and Washington, D.C. (2) Includes Florida with $191.3 million total loans, of which $22.0 million are non-performing loans.

Net loan charge-offs for the quarter ended March 31, 2012 totaled $17.3 million (including $16.1 million of residential loans and $693,000 of MF/CRE loans) compared to $31.2 million (including $12.2 million of residential loans and $18.4 million of MF/CRE loans) for the previous quarter.  Included in the $16.1 million of residential net loan charge-offs are $10.9 million of charge-offs on $46.6 million of NPLs which, at 180 days delinquent and annually thereafter, were reviewed in the 2012 first quarter and charged-off, as needed, to the estimated fair value of the underlying collateral less selling costs.  "While we expect NPL levels will remain elevated for some time, it is important to note that the loss potential remaining has been greatly reduced as a result of our having already reviewed, marked down, and charged-off as necessary, 83% of the residential NPLs to their adjusted fair value less selling costs," Mr. Redman noted.

 

Selected Asset Quality Metrics (at or for the three months ended March 31, 2012)

($ in millions)

 

Residential

Multi-

family

 

CRE

Consumer

 & Other

 

Total

Loan portfolio balance

$10,545.4

$ 1,860.8

$ 622.4

$  276.0 (1)

$13,380.6 (2)

Non-performing loans

$     312.2 (3)

$      35.5 (4)

$     1.4

$      6.4

$     355.6 (5)

NPLs/total loans

2.33%

0.27%

0.01%

0.05%

               2.66%

Net charge-offs  1Q12

$      16.1

$       0.4

$     0.3

$     0.5

$       17.3

(1) Includes home equity loans of $252.9 million. (2) Includes $76.1 million of net unamortized premiums and deferred loan costs. (3) Includes $258.4 million, or 83%, of NPLs reviewed and charged-off, as needed, at 180 days delinquent and annually thereafter. (4) Includes $25.7 million of TDRs. (5) Does not cross foot due to rounding.

Future Outlook 

Commenting on the future outlook, Mr. Redman stated, "Our goal for 2012 is to demonstrate consistent loan and balance sheet growth and improved operating efficiency, as well as to reposition the asset/liability mix, concentrating more on higher yielding multifamily loans than on lower yielding residential loans, and reducing higher cost CDs and increasing lower cost savings, money market and checking deposits.  With the MF/CRE lending operation now operating at full throttle, we anticipate that interest earning assets will continue to accelerate throughout the year which will help fuel earnings growth.  Our outlook for the net interest margin remains consistent with our outlook at the end of 2011, which is that we anticipate the 2012 full year margin will be similar to the 2011 fourth and 2012 first quarters net interest margin of 2.20%.   As I previously stated, 2012 continues to be the transitional year for us with continued quarterly earnings and balance sheet growth."

Earnings Conference Call April 19, 2012 at 10:00 a.m. (ET)  The Company, as previously announced, indicated that Monte N. Redman, President & CEO will host an earnings conference call Thursday morning, April 19, 2012 at 10:00 a.m. (ET).   The toll-free dial-in number is (877) 709-8150.  A telephone replay will be available on April 19, 2012 from 1:00 p.m. (ET) through midnight April 28, 2012 (ET).   The toll-free replay number is (877) 660-6853, account # 399, ID# 390956.  The conference call will also be simultaneously webcast on the Company's website www.astoriafederal.com and archived for one year.

Astoria Financial Corporation, with assets of $17.1 billion, is the holding company for Astoria Federal Savings and Loan Association.  Established in 1888, Astoria Federal, with deposits in New York totaling $11.1 billion, is the largest thrift depository in New York and embraces its philosophy of "Putting people first" by providing the customers and local communities it serves with quality financial products and services through 85 convenient banking office locations and multiple delivery channels, including its enhanced website, www.astoriafederal.com.  Astoria Federal 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 38 individual states.  Astoria Federal originates mortgage loans through its banking and loan production offices in New York, an extensive broker network covering fourteen states, primarily along the East Coast, and the District of Columbia, and through correspondent relationships covering fifteen states and the District of Columbia.

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," "may," "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 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 areas in which we do business, or conditions in the real estate or securities markets or the banking industry may be less favorable than we currently anticipate; legislative or regulatory changes, including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and any actions regarding foreclosures may adversely affect our business; transition of our regulatory supervisor from the Office of Thrift Supervision to the Office of the Comptroller of the Currency; effects of changes in existing U.S. government or government-sponsored mortgage programs; 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 other matters before regulatory agencies, whether currently existing or commencing in the future, may be determined adverse to us or may delay the occurrence or non-occurrence of events longer than we anticipate. We have no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document.

 Tables Follow

 

 

 

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Share Data)

At

At

March 31,

December 31,

2012

2011

ASSETS

Cash and due from banks

$

121,653

$

132,704

Securities available-for-sale

308,632

344,187

Securities held-to-maturity

(fair value of $2,255,457 and $2,176,925, respectively)

2,205,870

2,130,804

Federal Home Loan Bank of New York stock, at cost

146,598

131,667

Loans held-for-sale, net

22,918

32,394

Loans receivable:

Mortgage loans, net

13,103,252

12,990,600

Consumer and other loans, net

277,395

284,004

13,380,647

13,274,604

Allowance for loan losses

(149,899)

(157,185)

Total loans receivable, net

13,230,748

13,117,419

Mortgage servicing rights, net

8,057

8,136

Accrued interest receivable

45,723

46,528

Premises and equipment, net

118,388

119,946

Goodwill

185,151

185,151

Bank owned life insurance

411,138

409,637

Real estate owned, net

39,931

48,059

Other assets

266,871

315,423

TOTAL ASSETS

$

17,111,678

$

17,022,055

LIABILITIES

Deposits

$

11,112,648

$

11,245,614

Reverse repurchase agreements

1,600,000

1,700,000

Federal Home Loan Bank of New York advances

2,355,000

2,043,000

Other borrowings, net

378,666

378,573

Mortgage escrow funds

142,154

110,841

Accrued expenses and other liabilities

252,869

292,829

TOTAL LIABILITIES

15,841,337

15,770,857

STOCKHOLDERS' EQUITY

Preferred stock, $1.00 par value; (5,000,000 shares authorized;

none issued and outstanding)

-

-

Common stock, $.01 par value;  (200,000,000  shares authorized;

166,494,888 shares issued; and 98,442,461 and 98,537,715 shares

outstanding, respectively)

1,665

1,665

Additional paid-in capital

876,479

875,395

Retained earnings 

1,860,023

1,861,592

Treasury stock (68,052,427 and 67,957,173 shares, at cost, respectively)

(1,406,279)

(1,404,311)

Accumulated other comprehensive loss

(55,079)

(75,661)

Unallocated common stock held by ESOP 

(1,765,686 and 2,042,367 shares, respectively)

(6,468)

(7,482)

TOTAL STOCKHOLDERS' EQUITY

1,270,341

1,251,198

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

17,111,678

$

17,022,055

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Share Data)

For the Three Months Ended

March 31,

2012

2011

Interest income:

One-to-four family mortgage loans

$

99,292

$

114,676

Multi-family and commercial real estate mortgage loans

36,470

44,492

Consumer and other loans

2,341

2,507

Mortgage-backed and other securities

18,021

22,423

Repurchase agreements and interest-earning cash accounts

53

93

Federal Home Loan Bank of New York stock

1,602

2,317

Total interest income

157,779

186,508

Interest expense:

Deposits

29,427

37,032

Borrowings

40,156

47,947

Total interest expense

69,583

84,979

Net interest income

88,196

101,529

Provision for loan losses

10,000

7,000

Net interest income after provision for loan losses

78,196

94,529

Non-interest income:

Customer service fees

10,482

11,722

Other loan fees

887

932

Gain on sales of securities 

2,477

-

Mortgage banking income, net

1,355

2,433

Income from bank owned life insurance

2,423

2,235

Other

1,943

721

Total non-interest income

19,567

18,043

Non-interest expense:

General and administrative:

Compensation and benefits

42,160

36,533

Occupancy, equipment and systems

16,724

16,566

Federal deposit insurance premiums

11,203

5,514

Advertising

1,834

1,684

Other

10,280

9,322

Total non-interest expense

82,201

69,619

Income before income tax expense

15,562

42,953

Income tax expense

5,566

15,569

Net income 

$

9,996

$

27,384

Basic earnings per common share

$

0.11

$

0.29

Diluted earnings per common share

$

0.11

$

0.29

Basic weighted average common shares

95,018,867

92,734,401

Diluted weighted average common and common 

equivalent shares 

95,018,867

92,734,401

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Dollars in Thousands)

For the Three Months Ended March 31,

2012

2011

Average

Average

Average 

Yield/

Average 

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

(Annualized)

(Annualized)

Assets:

Interest-earning assets:

Mortgage loans (1):

One-to-four family

$

10,646,065

$

99,292

3.73

%

$

10,825,492

$

114,676

4.24

%

Multi-family and commercial real estate 

2,400,624

36,470

6.08

2,884,963

44,492

6.17

Consumer and other loans (1)

281,317

2,341

3.33

307,988

2,507

3.26

Total loans

13,328,006

138,103

4.14

14,018,443

161,675

4.61

Mortgage-backed and other securities (2)

2,444,341

18,021

2.95

2,533,953

22,423

3.54

Repurchase agreements and

       interest-earning cash accounts

88,254

53

0.24

194,996

93

0.19

Federal Home Loan Bank stock 

138,819

1,602

4.62

147,589

2,317

6.28

Total interest-earning assets

15,999,420

157,779

3.94

16,894,981

186,508

4.42

Goodwill

185,151

185,151

Other non-interest-earning assets

932,078

932,212

Total assets

$

17,116,649

$

18,012,344

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Savings

$

2,786,380

1,762

0.25

$

2,704,261

2,687

0.40

Money market

1,130,700

1,853

0.66

382,756

429

0.45

NOW and demand deposit

1,843,246

290

0.06

1,750,841

281

0.06

Total savings, money market and 

       NOW and demand deposit

5,760,326

3,905

0.27

4,837,858

3,397

0.28

Certificates of deposit

5,353,472

25,522

1.91

6,646,739

33,635

2.02

Total deposits

11,113,798

29,427

1.06

11,484,597

37,032

1.29

Borrowings

4,238,790

40,156

3.79

4,826,055

47,947

3.97

Total interest-bearing liabilities

15,352,588

69,583

1.81

16,310,652

84,979

2.08

Non-interest-bearing liabilities

512,158

451,839

Total liabilities 

15,864,746

16,762,491

Stockholders' equity

1,251,903

1,249,853

Total liabilities and stockholders' equity

$

17,116,649

$

18,012,344

Net interest income/

net interest rate spread (3)

$

88,196

2.13

%

$

101,529

2.34

%

Net interest-earning assets/

net interest margin (4)

$

646,832

2.20

%

$

584,329

2.40

%

Ratio of interest-earning assets to

interest-bearing liabilities

1.04x

1.04x

(1) Mortgage loans 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 included at average amortized cost.

(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.

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

SELECTED FINANCIAL RATIOS AND OTHER DATA

At or For the

Three Months Ended

March 31, 

2012

2011

Selected Returns and Financial Ratios (annualized)

Return on average stockholders' equity 

3.19

%

8.76

%

Return on average tangible stockholders' equity (1)

3.75

10.29

Return on average assets 

0.23

0.61

General and administrative expense to average assets

1.92

1.55

Efficiency ratio (2)

76.28

58.22

Net interest rate spread

2.13

2.34

Net interest margin

2.20

2.40

Selected Non-GAAP Returns and Financial Ratios (annualized) (3) 

Non-GAAP return on average stockholders' equity 

3.90

%

8.76

%

Non-GAAP return on average tangible stockholders' equity (1)

4.58

10.29

Non-GAAP return on average assets

0.29

0.61

Non-GAAP general and administrative expense to average assets

1.84

1.55

Non-GAAP efficiency ratio (2)

73.10

58.22

Asset Quality Data (dollars in thousands)

Non-performing assets (4)

$

395,499

$

435,173

Non-performing loans (4)

355,568

373,754

Loans 60-89 days delinquent

41,546

62,162

Loans 30-59 days delinquent

121,786

155,075

Net charge-offs 

17,286

19,013

Non-performing loans/total loans

2.66

%

2.71

%

Non-performing loans/total assets

2.08

2.11

Non-performing assets/total assets

2.31

2.46

Allowance for loan losses/non-performing loans

42.16

50.70

Allowance for loan losses/total loans

1.12

1.37

Net charge-offs to average loans outstanding (annualized)

0.52

0.54

Capital Ratios (Astoria Federal) 

Tangible

8.75

%

8.17

%

Leverage

8.75

8.17

Risk-based

16.19

15.18

Tier 1 risk-based

14.92

13.89

Other Data 

Cash dividends paid per common share

$

0.13

$

0.13

Book value per share (5)

13.14

13.28

Tangible book value per share (6)

11.22

11.33

Tangible common stockholders' equity/tangible assets (1) (7)

6.41

%

6.16

%

Mortgage loans serviced for others (in thousands)

$

1,444,263

$

1,471,352

Full time equivalent employees

1,535

1,564

(1)

Tangible stockholders' equity represents stockholders' equity less goodwill.

(2)

Efficiency ratio represents general and administrative expense divided by the sum of net interest income plus non-interest income.

(3)

See the "Reconciliation of GAAP Measures to Non-GAAP Measures" table included in this release for a reconciliation of GAAP measures to non-GAAP measures for the three months ended March 31, 2012.

(4)

Non-performing assets and non-performing loans include, but are not limited to, one-to-four family mortgage loans which at 180 days past due and annually thereafter we obtained an estimate of collateral value and charged-off any portion of the loan in excess of the estimated collateral value less estimated selling costs.

(5)

Book value per share represents stockholders' equity divided by outstanding shares, excluding unallocated Employee Stock Ownership Plan, or ESOP, shares.

(6)

Tangible book value per share represents stockholders' equity less goodwill divided by outstanding shares, excluding unallocated ESOP shares.

(7)

Tangible assets represent assets less goodwill.

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

END OF PERIOD BALANCES AND RATES

(Dollars in Thousands)

At March  31, 2012

At  December  31, 2011

At March 31, 2011

Weighted

Weighted

Weighted

Average

Average

Average

  Balance

Rate (1)

  Balance

Rate (1)

  Balance

Rate (1)

Selected interest-earning assets:

Mortgage loans, gross (2):

One-to-four family

$

10,233,159

4.03

%

$

10,243,672

4.16

%

$

10,314,095

4.61

%

Multi-family and commercial real estate

2,446,240

5.56

2,344,655

5.88

2,720,027

6.05

Mortgage-backed and other securities (3)

2,514,502

3.48

2,474,991

3.57

2,607,821

3.75

Interest-bearing liabilities:

Savings

2,811,218

0.25

2,750,715

0.25

2,766,057

0.40

Money market

1,166,443

0.69

1,114,404

0.71

386,670

0.46

NOW and demand deposit

1,925,073

0.06

1,861,488

0.06

1,784,318

0.06

Total savings, money market and

       NOW and demand deposit

5,902,734

0.27

5,726,607

0.28

4,937,045

0.28

Certificates of deposit

5,209,914

1.91

5,519,007

1.93

6,538,294

2.05

Total deposits

11,112,648

1.04

11,245,614

1.09

11,475,339

1.29

Borrowings, net 

4,333,666

3.61

4,121,573

3.98

4,577,296

4.12

(1)     Weighted average rates represent stated or coupon interest rates excluding the effect of yield adjustments for premiums,

          discounts and deferred loan origination fees and costs and the impact of prepayment penalties.

(2)     Mortgage loans exclude loans held-for-sale and non-performing loans.

(3)     Securities available-for-sale are reported at fair value and securities held-to-maturity are reported at amortized cost.

 

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES

 (In Thousands, Except Per Share Data) 

Income and expense and related financial ratios determined in accordance with GAAP (GAAP measures) excluding the adjustments detailed in the following table (non-GAAP measures) provide a meaningful comparison for effectively evaluating Astoria's operating results. 

For the Three Months Ended

March 31, 2012

   GAAP

Adjustments (1)

Non-GAAP

Net interest income

$88,196

$          -

$88,196

Provision for loan losses

10,000

-

10,000

Net interest income after provision for loan losses

78,196

-

78,196

Non-interest income 

19,567

-

19,567

Non-interest expense (general and administrative expense) 

82,201

(3,425)

78,776

Income before income tax expense

15,562

3,425

18,987

Income tax expense

5,566

1,208

6,774

Net income 

$9,996

$2,217

$12,213

Basic earnings per common share

$0.11

$0.02

$0.13

Diluted earnings per common share

$0.11

$0.02

$0.13

Non-GAAP returns are calculated substituting non-GAAP net income for net income in the corresponding ratio calculation, while the non-GAAP general and administrative expense to average assets ratio substitutes non-GAAP general and administrative expense (non-GAAP non-interest expense) for general and administrative expense (non-interest expense) in the corresponding ratio calculation.  Similarly, the non-GAAP efficiency ratio substitutes non-GAAP non-interest income and non-GAAP general and administrative expense for non-interest income and general and administrative expense in the corresponding ratio calculation.

(1) Adjustments relate primarily to compensation and benefits expense associated with cost control initiatives implemented in the 2012 first quarter.

 

 

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

One-to-Four Family Residential Loan Portfolio - Geographic Analysis

(Dollars in millions)

At March 31, 2012

 Non-performing loans

State

Total loans

Non-performing loans

as % of total loans

New York

   Full Income

$2,745.4

$22.9

0.83%

   Alt A < 70% LTV

$201.1

$11.2

5.57%

   Alt A  70%-80% LTV

$55.0

$10.5

19.09%

State Total

$3,001.5

$44.6

1.49%

Illinois

   Full Income

$1,005.9

$18.8

1.87%

   Alt A < 70% LTV

$105.8

$11.1

10.49%

   Alt A  70%-80% LTV

$98.0

$16.5

16.84%

State Total

$1,209.7

$46.4

3.84%

Connecticut

   Full Income

$980.7

$12.9

1.32%

   Alt A < 70% LTV

$100.0

$10.6

10.60%

   Alt A  70%-80% LTV

$42.9

$6.4

14.92%

State Total

$1,123.6

$29.9

2.66%

Massachusetts

   Full Income

$737.2

$5.9

0.80%

   Alt A < 70% LTV

$61.4

$3.9

6.35%

   Alt A  70%-80% LTV

$23.3

$1.2

5.15%

State Total

$821.9

$11.0

1.34%

New Jersey

   Full Income

$599.2

$27.6

4.61%

   Alt A < 70% LTV

$79.0

$9.7

12.28%

   Alt A  70%-80% LTV

$75.4

$20.1

26.66%

State Total

$753.6

$57.4

7.62%

California

   Full Income

$419.9

$11.6

2.76%

   Alt A < 70% LTV

$128.8

$7.2

5.59%

   Alt A  70%-80% LTV

$115.1

$10.4

9.04%

State Total

$663.8

$29.2

4.40%

Virginia

   Full Income

$496.3

$5.9

1.19%

   Alt A < 70% LTV

$62.8

$1.9

3.03%

   Alt A  70%-80% LTV

$75.8

$4.0

5.28%

State Total

$634.9

$11.8

1.86%

Maryland

   Full Income

$477.2

$17.5

3.67%

   Alt A < 70% LTV

$65.3

$7.1

10.87%

   Alt A  70%-80% LTV

$68.5

$14.7

21.46%

State Total

$611.0

$39.3

6.43%

Washington

   Full Income

$295.7

$3.1

1.05%

   Alt A < 70% LTV

$3.4

$0.0

0.00%

   Alt A  70%-80% LTV

$1.7

$0.4

23.53%

State Total

$300.8

$3.5

1.16%

Texas

   Full Income

$262.6

$0.0

0.00%

   Alt A < 70% LTV

$0.1

$0.0

0.00%

   Alt A  70%-80% LTV

$0.0

$0.0

0.00%

State Total

$262.7

$0.0

0.00%

Other States*

   Full Income

$1,000.3

$21.9

2.19%

   Alt A < 70% LTV

$98.9

$10.3

10.41%

   Alt A  70%-80% LTV

$62.7

$6.9

11.00%

Other States Total

$1,161.9

$39.1

3.37%

Total all states

   Full Income

$9,020.4

$148.1

1.64%

   Alt A < 70% LTV

$906.6

$73.0

8.05%

   Alt A  70%-80% LTV

$618.4

$91.1

14.73%

Grand total

$10,545.4

$312.2

2.96%

* Includes Florida with $191.3 million total loans, of which $22.0 million are non-performing loans.

Note:  LTVs are based on current principal balances and original appraised values.

SOURCE Astoria Financial Corporation



RELATED LINKS

http://ir.astoriafederal.com