2014

Astoria Financial Corporation Reports Fourth Quarter And Full Year Earnings Per Common Share Of $0.18 And $0.60, Respectively Quarterly Cash Dividend of $0.04 Per Common Share Declared; Sets Annual Shareholder Meeting Date

LAKE SUCCESS, N.Y., Jan. 29, 2014 /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 available to common shareholders of $18.0 million, or $0.18 diluted earnings per common share ("diluted EPS"), for the quarter ended December 31, 2013, compared to net income available to common shareholders of $16.9 million, or $0.17 diluted EPS, for the quarter ended December 31, 2012. For the year ended December 31, 2013, net income available to common shareholders totaled $59.4 million, or $0.60 diluted EPS, compared to $53.1 million, or $0.55 diluted EPS, for the year ended December 31, 2012.

Included in the 2013 full year results is a $4.3 million prepayment charge ($2.8 million, or $0.03 per common share, after tax) for the early extinguishment of debt during the 2013 second quarter in connection with the redemption of $125 million of capital securities. Included in the 2012 fourth quarter is a $6.0 million ($3.9 million, or $0.04 per common share, after tax) gain resulting from the sale of the Company's entire holdings of Freddie Mac preferred stock and a $2.2 million ($1.4 million, or $0.02 per common share, after tax) charge related to the settlement of employment agreements associated with executive retirements in the 2012 first quarter. Also included in the 2012 full year results are net charges totaling $3.4 million ($2.2 million, or $0.02 per common share, after-tax), representing severance related expenses associated with cost control initiatives implemented in the 2012 first quarter, and a $1.2 million ($785,000, or $0.01 per common share, after tax) charge related to the early extinguishment of debt in the 2012 third quarter.

Financial Highlights

Loan Portfolio Shift Continues:

  • Multifamily/commercial real estate ("MF/CRE") mortgage loan originations totaled $1.6 billion for the year ended December 31, 2013.
  • MF/CRE loans continue to become a larger percentage of the loan portfolio, increasing to 33% of total loans at December 31, 2013 from 24% at December 31, 2012.
  • At December 31, 2013, the MF/CRE pipeline totaled approximately $312 million.

Deposits:

  • Business deposits increased 32% from December 31, 2012 to $650.1 million at December 31, 2013.
  • Core deposits increased to 67% of deposits at December 31, 2013, up from 62% at December 31, 2012.

Net Interest Margin:

  • For the year ended December 31, 2013, the net interest margin increased to 2.25% from 2.16% for the 2012 comparable period.

Operating Expense Improvement:

  • Year over year decline in operating expenses achieved in part through cost control initiatives implemented in 2012 resulting in lower compensation and benefits expense, primarily pension related, coupled with lower FDIC insurance premium expense and other expense.

Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the 2013 fourth quarter stated, "We are pleased with the results that we have reported today which we believe demonstrate that our plan to strategically reposition our balance sheet continues to gain traction.  On the asset side of the balance sheet, our MF/CRE loan portfolio continued to grow and now represents 33% of our loan portfolio, well on its way towards our target of 45% by the end of 2015.  Likewise, on the liability side, our continued focus on growing business banking continues to pay dividends by providing us with low cost business deposits, which have grown 32% during the year ended December 31, 2013." 

Board Declares Quarterly Cash Dividend of $0.04 Per Share; Sets Annual Shareholder Meeting Date

The Board of Directors of the Company, at its January 29, 2014 meeting, declared a quarterly cash dividend of $0.04 per common share.  The dividend is payable on March 1, 2014 to shareholders of record as of February 14, 2014.  This is the seventy-fifth consecutive quarterly cash dividend declared by the Company. In addition, the Board established May 21, 2014 as the date for the Annual Meeting of Shareholders, and set March 27, 2014 as the voting record date. In addition, as stated earlier today in a press release, the Company announced that Jane D. Carlin has been appointed to serve as a director of both the Company and Astoria Federal effective January 29, 2014.

Fourth Quarter and Full Year Earnings Summary

Net interest income for the quarter ended December 31, 2013 totaled $86.8 million compared to $86.2 million for the previous quarter and $87.4 million for the 2012 fourth quarter.  The net interest margin for the quarter ended December 31, 2013 increased to 2.31% from 2.28% for the previous quarter and 2.21% for the 2012 fourth quarter.  For the year ended December 31, 2013, net interest income totaled $341.9 million, compared to $348.3 million for the year ended December 31, 2012, and the net interest margin increased to 2.25% for the full year 2013 from 2.16% for the full year 2012. 

For the quarter ended December 31, 2013, a $3.4 million provision for loan losses was recorded compared to $2.5 million for the previous quarter and $10.9 million for the 2012 fourth quarter.  For the year ended December 31, 2013, the provision for loan losses totaled $19.6 million compared to $40.4 million for the year ended December 31, 2012. "The level of provision is a continued reflection of the improvement in our asset quality metrics, as well as the contraction of the overall loan portfolio.  The allowance for loan losses coverage ratio to the total loan portfolio remains strong at 1.12%," Mr. Redman commented. 

Non-interest income for the quarter ended December 31, 2013 totaled $17.4 million compared to $21.6 million for the 2012 fourth quarter.  This decrease is due primarily to a decrease in gain on sales of securities, partially offset by an increase in mortgage banking income, net, including a partial recovery of the MSR valuation allowance of $2.3 million. For the year ended December 31, 2013, non-interest income totaled $69.6 million compared to $73.2 million for the year ended December 31, 2012.  This decrease is primarily due to decreases in gain on sales of securities, customer service fees, and income from bank owned life insurance, partially offset by an increase in mortgage banking income, net, including a partial recovery of the MSR valuation allowance totaling $5.4 million.

General and administrative ("G&A") expense for the quarter ended December 31, 2013 totaled $69.0 million compared to $72.5 million for the previous quarter and $73.2 million for the 2012 fourth quarter. The decrease from the previous quarter is primarily due to decreases in advertising expense and other expense.  The decrease from the 2012 fourth quarter is due to the decline in FDIC insurance premium expense and decreases in advertising expense and other expense. For the year ended December 31, 2013, G&A expense decreased $12.6 million, or 4%, to $287.5 million from $300.1 million for the year ended December 31, 2012.  This decrease is primarily due to decreases in FDIC insurance premium expense, compensation and benefits expense, and other expense which were partially offset by increases in occupancy, equipment and systems expense and extinguishment of debt expense.

Balance Sheet Summary

Total assets decreased $228.4 million and $702.9 million, from September 30, 2013 and December 31, 2012, respectively, and totaled $15.8 billion at December 31, 2013.  The declines were primarily due to decreases in the residential mortgage loan portfolio, partially offset by an increase in the securities portfolio since December 31, 2012.  The loan portfolio decreased $99.5 million and $781.9 million from September 30, 2013 and December 31, 2012, respectively, and totaled $12.4 billion at December 31, 2013. 

The residential (one-to-four family) mortgage loan portfolio totaled $8.0 billion at December 31, 2013, compared to $8.3 billion at September 30, 2013 and $9.7 billion at December 31, 2012. For the quarter and year ended December 31, 2013, residential loan originations for portfolio totaled $158.2 million and $996.0 million, respectively, compared to $220.4 million and $2.5 billion, respectively, for the comparable 2012 periods.  The weighted average loan-to-value ratios of the residential loan production for portfolio were approximately 72% and 66% at origination for the quarter and year ended December 31, 2013, respectively, and the loan amounts averaged approximately $582,000 and $694,000, respectively.  Residential loan prepayments for the quarter and year ended December 31, 2013 totaled $323.2 million and $2.3 billion, respectively, compared to $633.7 million and $2.9 billion, respectively, for the comparable 2012 periods.  "During the fourth quarter, as longer-term interest rates moved higher, we experienced a more dramatic slowdown in residential loan prepayments,  the early signs of which we had begun to see in the 2013 third quarter. In addition we experienced a decrease in residential mortgage originations as the market shifted away from a refinance market towards more of a purchase market," Mr. Redman commented.  

The MF/CRE mortgage loan portfolio increased $168.6 million, or 4%, from September 30, 2013 and $928.8 million, or 29%, from December 31, 2012 to $4.1 billion at December 31, 2013, and represents 33% of the total loan portfolio.  For the quarter and year ended December 31, 2013, MF/CRE loan originations totaled $325.2 million and $1.6 billion, respectively, compared to $383.4 million and $1.6 billion, respectively, for the 2012 comparable periods.  The 2013 quarter and year ended December 31, 2013 MF/CRE loan production was originated with weighted average loan-to-value ratios of approximately 29% and 43%, respectively, weighted average debt coverage ratios of approximately 1.68%  and 1.74%, respectively, and loan balances averaging approximately $2.5 million and $2.6 million, respectively.  MF/CRE loan prepayments for the quarter and year ended December 31, 2013 totaled $125.1 million and $495.4 million, respectively, compared to $150.6 million and $694.8 million for the comparable 2012 periods.  At December 31, 2013, the MF/CRE pipeline totaled approximately $312 million.  Mr. Redman stated, "Similar to what we saw in the residential mortgage loan portfolio, as longer-term rates moved higher, deal activity appears to have slowed down which has led to a decrease in our pipeline from where it stood earlier in 2013."  

Deposits decreased $205.1 million and $588.6 million from September 30, 2013 and December 31, 2012, respectively, to $9.9 billion at December 31, 2013.  The year-to-date decreases were primarily due to decreases in higher cost certificates of deposit ("CDs"), partially offset by a net increase in lower cost core deposits. Core deposits totaled $6.6 billion, or 67% of total deposits, and had a weighted average rate of 11 basis points at December 31, 2013, compared to 62% of total deposits at December 31, 2012.  CDs, which totaled $3.3 billion at December 31, 2013, or 33% of total deposits, declined 17% from December 31, 2012.    

Borrowings totaled $4.1 billion at December 31, 2013, a decrease of $236.3 million from December 31, 2012. The decrease in borrowings, coupled with the growth in business banking deposits and decrease in CDs, is a further reflection of our continuing efforts to reposition the mix of liabilities. 

Stockholders' equity totaled $1.5 billion, or 9.62% of total assets, at December 31, 2013, an increase of $225.5 million from December 31, 2012, primarily the result of the issuance of preferred stock in the 2013 first quarter, undistributed net income and other comprehensive income.  Astoria Federal continues to be designated as well-capitalized with Tier 1 leverage, Tangible, Total risk-based and Tier 1 risk-based capital ratios of 9.93%, 9.93%, 17.05% and 15.79%, respectively, at December 31, 2013.

Asset Quality

Non-performing loans ("NPLs"), including troubled debt restructurings ("TDRs") of $109.8 million, totaled $332.0 million, or 2.10% of total assets, at December 31, 2013, compared to $315.1 million, including TDRs of $32.8 million, or 1.91% of total assets, at December 31, 2012. Included in the $332.0 million of non-performing loans at December 31, 2013 are $81.5 million of loans which are current or less than 90 days past due compared to $13.7 million at December 31, 2012.

Residential NPLs totaled $305.6 million, of which $234.4 million are 90 days or more delinquent, at December 31, 2013, compared to $291.1 million, of which $280.7 million are 90 days or more delinquent, at December 31, 2012. Of the $234.4 million of residential NPLs delinquent 90 or more days, $202.7 million, or 86%, represent 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.  MF/CRE NPLs totaled $20.4 million and consumer and other NPLs totaled $6.0 million at December 31, 2013 compared to $17.5 million and $6.5 million, respectively, at December 31, 2012. Real estate owned, net totaled $42.6 million at December 31, 2013 compared to $28.5 million at December 31, 2012.

The following table illustrates a two-year migration trend for loan delinquencies and NPLs:

 

 

(in millions)

Delinquent Loans

30-89 Days

Past Due

NPLs

Less Than 90

Days Past Due

NPLs

90 Days or More

Past Due

           

Total NPLs

Total

Delinquent

Loans and

NPLs

At December 31, 2011

$215.5

$10.9

$322.0

$332.9

$548.4

At December 31, 2012

$181.9

$13.7

$301.4

$315.1

$497.0

At December 31, 2013(1)

$131.9

$81.5

$250.5

$332.0

$463.9







(1) Non-performing loans at December 31, 2013 include $61.0 million of loans which have been discharged in a Chapter 7 bankruptcy filing which are less than 90 days past due, of which $54.5 million are current. Such loans are reflected as non-performing pursuant to regulatory guidance issued in 2012.

 

The table below details, as of December 31, 2013, the ten largest concentrations by state of residential mortgage loans and the respective non-performing loan totals in those states. 

 ($ in millions)

State

 Total Residential

Loans

% of Total

Residential

Loans

Total

Residential

NPLs

NPLs as %

of State Total

New York*

$ 2,373.2

29.6%

$  54.6

2.30%

Connecticut*

$    828.7

10.3%

$  36.2

4.37%

Illinois*

$    741.1

9.2%

$  35.5

4.79%

Massachusetts*

$    679.6

8.5%

$  13.4

1.97%

New Jersey*

$    570.9

7.1%

$  57.0

9.98%

Virginia

$    559.4

7.0%

$  15.0

2.68%

Maryland*

$    498.0

6.2%

$  35.6

7.15%

California

$    477.1

5.9%

$  23.4

4.90%

Washington

$    227.9

2.8%

$    2.6

1.14%

Texas

$    204.7

2.5%

$    0.0

0.00%

Top 10 States

$ 7,160.6

89.1%

$273.3

3.82%

All other states (1,2)

$     876.7

10.9%

$  32.3

3.68%

Total  Residential Loans

$ 8,037.3

100.0%  

    $305.6 (3)

3.80%






* Judicial foreclosure required

(1) Includes 25 states and Washington, D.C.

(2) Includes Florida with $142.8 million total loans, of which $12.4 million are non-performing loans.

(3) Includes $71.2 million of loans which are current or less than 90 days past due.

 

 

Selected Asset Quality Metrics
(at December 31, 2013 except as noted)







($ in millions)

 

Residential

Multi-

Family

CRE

Consumer

 & Other

Total

Loan portfolio balance

$  8,037.3

$ 3,296.5

$   813.0

    $     239.7(1)

      $12,442.1 (2)(6)  

Non-performing loans

 $     305.6 (3)(4)

$      12.5

$      7.9

$         6.0

      $     332.0 (5)

NPLs/total loans

2.46%

0.10%

0.06%

0.05%

2.67%

Net charge-offs  4Q13

$         5.0

$        1.1

$       1.4

$        (0.1)

$         7.4

Net charge-offs YTD

$       18.3

$        3.5

$       3.2

$         1.1

$       26.1







(1) Includes $199.8 million of home equity loans.

(2) Includes $55.7 million of net unamortized premiums and deferred loan costs.

(3) Includes $71.2 million of loans which are current or less than 90 days past due.

(4) Includes $202.7 million of NPLs reviewed, and charged-off as needed, at 180 days delinquent and annually thereafter.

(5) Includes $81.5 million of loans which are current or less than 90 days past due.

(6) Does not foot due to rounding.

Included in the $5.0 million of residential loan net charge-offs in the 2013 fourth quarter are $3.3 million of charge-offs on $18.4 million of NPLs which, at 180 days delinquent and annually thereafter, were reviewed in the 2013 fourth quarter and charged-off, as needed, to the estimated fair value of the underlying collateral less estimated selling costs.  "Although we continued to see increased levels of loans shifting from NPL status to real estate owned during the quarter, we expect the level of NPLs 90 days or more delinquent will remain somewhat elevated for some time, especially in those states requiring judicial foreclosure.  It is important to note that the loss potential remaining on these NPLs has been greatly reduced as a result of our having already reviewed, marked down, and charged-off as necessary, 86% of the residential NPLs 90 days or more delinquent, to their adjusted fair value less estimated selling costs," Mr. Redman noted.

Future Outlook 

Commenting on the future outlook, Mr. Redman stated, "It is clear to us that our strategy to become a full service community bank is taking hold.  As we move forward we will continue to execute this strategy to further diversify the balance sheet and improve our net interest margin. Business banking will remain a focus and we expect to open our first full-service branch in Manhattan by the end of the first quarter.  In addition, we plan to open two more full-service branches in the second half of the year in prime locations within our market from which to better serve our business banking clients.  We anticipate that our net interest margin in 2014 will be higher than the 2.25% margin we achieved in 2013.  We believe we will experience a growth in earning assets in 2014 as the contraction we have witnessed over the past several years in the residential portfolio continues to slow down and the growth in our MF/CRE portfolio starts to outpace the shrinkage."

Earnings Conference Call January 30, 2014 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, January 30, 2014 at 10:00 a.m. (ET).   The toll-free dial-in number is (877) 709-8150.  A telephone replay will be available on January 30, 2014 from 1:00 p.m. (ET) through midnight Saturday, February 8, 2014 (ET).   The replay number is (877) 660-6853, ID# 421313.  The conference call will also be simultaneously webcast on the Company's website www.astoriafederal.com and archived for one year.

About Astoria Financial Corporation

Astoria Financial Corporation, with assets of $15.8 billion, is the holding company for Astoria Federal Savings and Loan Association.  Established in 1888, Astoria Federal, with deposits in New York totaling $9.9 billion, is the second 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 branch locations, one business banking office, and multiple delivery channels, including its enhanced website, www.astoriafederal.com.  Astoria Federal commands a significant 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 residential mortgage loans through its banking and loan production offices in New York, a broker network in four states, primarily along the East Coast, and correspondent relationships covering nine states and the District of Columbia and multi-family and commercial real estate loans, primarily on rent controlled and rent stabilized apartment buildings, located in New York City and the surrounding metropolitan area.

Forward Looking Statements

This press release 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; enhanced supervision and examination by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; 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 press release.

 Tables Follow

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES









CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In Thousands, Except Share Data)






At


At






December 31,


December 31,






2013


2012

ASSETS






Cash and due from banks


$

121,950

$

121,473

Securities available-for-sale



401,690


336,300

Securities held-to-maturity







(fair value of $1,811,122 and $1,725,090, respectively)



1,849,526


1,700,141

Federal Home Loan Bank of New York stock, at cost



152,207


171,194

Loans held-for-sale, net



7,375


76,306

Loans receivable:







Mortgage loans, net



12,201,920


12,958,999


Consumer and other loans, net



240,146


264,973






12,442,066


13,223,972


Allowance for loan losses



(139,000)


(145,501)

Total loans receivable, net



12,303,066


13,078,471

Mortgage servicing rights, net



12,800


6,947

Accrued interest receivable



37,926


41,688

Premises and equipment, net



112,530


115,632

Goodwill



185,151


185,151

Bank owned life insurance



423,375


418,155

Real estate owned, net



42,636


28,523

Other assets



143,490


216,661









TOTAL ASSETS


$

15,793,722

$

16,496,642









LIABILITIES






Deposits


$

9,855,310

$

10,443,958

Federal funds purchased



335,000


-

Reverse repurchase agreements



1,100,000


1,100,000

Federal Home Loan Bank of New York advances



2,454,000


2,897,000

Other borrowings, net



248,161


376,496

Mortgage escrow funds



109,458


113,101

Accrued expenses and other liabilities



172,280


272,098









TOTAL LIABILITIES



14,274,209


15,202,653









STOCKHOLDERS' EQUITY






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







Series C (150,000 shares authorized; and 135,000 and -0- shares issued







and outstanding, respectively)



129,796


-

Common stock, $0.01 par value  (200,000,000 shares authorized;







166,494,888 shares issued; and 98,841,960 and 98,419,318 shares







outstanding, respectively)



1,665


1,665

Additional paid-in capital



894,297


884,689

Retained earnings 



1,930,026


1,891,022

Treasury stock (67,652,928 and 68,075,570 shares, at cost, respectively)



(1,398,021)


(1,406,755)

Accumulated other comprehensive loss



(38,250)


(73,090)

Unallocated common stock held by ESOP 







(-0- and 967,013 shares, respectively)



-


(3,542)









TOTAL STOCKHOLDERS' EQUITY



1,519,513


1,293,989









TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$

15,793,722

$

16,496,642









 

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
















CONSOLIDATED STATEMENTS OF INCOME




(In Thousands, Except Share Data)
























For the Three Months Ended


For the Twelve Months Ended





December 31,


December 31,





2013


2012


2013


2012

Interest income:










Residential mortgage loans

$

66,796

$

86,242

$

289,790

$

372,478


Multi-family and commercial real estate mortgage loans


42,889


38,606


163,352


149,694


Consumer and other loans


2,186


2,314


8,797


9,258


Mortgage-backed and other securities


13,560


12,312


49,563


61,757


Repurchase agreements and interest-earning cash accounts


71


56


263


338


Federal Home Loan Bank of New York stock


1,518


2,056


6,665


6,984

Total interest income


127,020


141,586


518,430


600,509

Interest expense:










Deposits


14,451


19,542


62,617


98,021


Borrowings


25,804


34,638


113,911


154,219

Total interest expense


40,255


54,180


176,528


252,240












Net interest income


86,765


87,406


341,902


348,269

Provision for loan losses


3,408


10,900


19,601


40,400

Net interest income after provision for loan losses


83,357


76,506


322,301


307,869

Non-interest income:










Customer service fees


9,068


9,040


36,786


39,520


Other loan fees


642


703


2,230


2,640


Gain on sales of securities 


-


6,000


2,057


8,477


Mortgage banking income, net


3,181


1,673


13,241


6,820


Income from bank owned life insurance


2,193


2,366


8,404


9,439


Other


2,319


1,861


6,854


6,339

Total non-interest income


17,403


21,643


69,572


73,235

Non-interest expense:










General and administrative:











Compensation and benefits


34,427


34,080


133,689


139,140



Occupancy, equipment and systems


17,042


17,414


70,711


67,406



Federal deposit insurance premium


8,829


11,763


37,188


47,363



Advertising


175


768


6,400


6,392



Extinguishment of debt


-


-


4,266


1,212



Other


8,576


9,165


35,277


38,620

Total non-interest expense


69,049


73,190


287,531


300,133












Income before income tax expense


31,711


24,959


104,342


80,971

Income tax expense


11,559


8,043


37,749


27,880












Net income 


20,152


16,916


66,593


53,091












Preferred stock dividends


2,193


-


7,214


-












Net income available to common shareholders

$

17,959

$

16,916

$

59,379

$

53,091























Basic earnings per common share

$

0.18

$

0.17

$

0.60

$

0.55























Diluted earnings per common share

$

0.18

$

0.17

$

0.60

$

0.55












Basic weighted average common shares outstanding

97,579,796

95,907,718

97,121,497

95,455,344

Diluted weighted average common shares outstanding

97,579,796

95,907,718

97,121,497

95,455,344












 

 


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

























AVERAGE BALANCE SHEETS




(Dollars in Thousands)





















































For the Three Months Ended December 31,







2013



2012












Average







Average








Average 




Yield/



Average 




Yield/








Balance


Interest


Cost



Balance


Interest


Cost












(Annualized)







(Annualized)



Assets:


















Interest-earning assets:


















Mortgage loans (1):



















Residential

$

8,226,614

$

66,796


3.25

%

$

10,091,712

$

86,242


3.42

%





Multi-family and commercial real estate 


4,041,959


42,889


4.24



3,058,470


38,606


5.05





Consumer and other loans (1)


243,375


2,186


3.59



268,109


2,314


3.45





Total loans


12,511,948


111,871


3.58



13,418,291


127,162


3.79





Mortgage-backed and other securities (2)


2,274,668


13,560


2.38



2,106,362


12,312


2.34





Interest-earning cash accounts


103,503


71


0.27



90,548


56


0.25





Federal Home Loan Bank stock 


153,101


1,518


3.97



179,397


2,056


4.58




Total interest-earning assets


15,043,220


127,020


3.38



15,794,598


141,586


3.59




Goodwill


185,151







185,151








Other non-interest-earning assets


691,767







768,114







Total assets

$

15,920,138






$

16,747,863


























Liabilities and stockholders' equity:

















Interest-bearing liabilities:


















Savings

$

2,522,999


318


0.05


$

2,798,866


353


0.05





Money market


1,937,387


1,237


0.26



1,497,279


2,702


0.72





NOW and demand deposit


2,091,156


173


0.03



2,010,158


164


0.03





Total core deposits


6,551,542


1,728


0.11



6,306,303


3,219


0.20





Certificates of deposit


3,364,659


12,723


1.51



4,126,333


16,323


1.58





Total deposits


9,916,201


14,451


0.58



10,432,636


19,542


0.75





Borrowings


4,119,999


25,804


2.51



4,622,347


34,638


3.00




Total interest-bearing liabilities


14,036,200


40,255


1.15



15,054,983


54,180


1.44




Non-interest-bearing liabilities


406,268







394,591







Total liabilities 


14,442,468







15,449,574







Stockholders' equity


1,477,670







1,298,289







Total liabilities and stockholders' equity

$

15,920,138






$

16,747,863


























Net interest income/

















net interest rate spread (3)



$

86,765


2.23

%



$

87,406


2.15

%


Net interest-earning assets/

















net interest margin (4)

$

1,007,020




2.31

%

$

739,615




2.21

%


Ratio of interest-earning assets to

















interest-bearing liabilities


1.07x







1.05x































































(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





















AVERAGE BALANCE SHEETS


(Dollars in Thousands)














































For the Twelve Months Ended December 31,







2013



2012












Average







Average








Average 




Yield/



Average 




Yield/








Balance


Interest


Cost



Balance


Interest


Cost






















Assets:

















Interest-earning assets:


















Mortgage loans (1):



















Residential

$

8,810,950

$

289,790


3.29

%

$

10,464,169

$

372,478


3.56

%





Multi-family and commercial real estate 


3,680,551


163,352


4.44



2,739,095


149,694


5.47





Consumer and other loans (1)


253,465


8,797


3.47



273,907


9,258


3.38





Total loans


12,744,966


461,939


3.62



13,477,171


531,430


3.94





Mortgage-backed and other securities (2)


2,211,700


49,563


2.24



2,312,270


61,757


2.67





Repurchase agreements and



















interest-earning cash accounts


95,892


263


0.27



142,745


338


0.24





Federal Home Loan Bank stock 


154,478


6,665


4.31



164,707


6,984


4.24




Total interest-earning assets


15,207,036


518,430


3.41



16,096,893


600,509


3.73




Goodwill


185,151







185,151








Other non-interest-earning assets


748,080







824,481







Total assets

$

16,140,267






$

17,106,525


























Liabilities and stockholders' equity:

















Interest-bearing liabilities:


















Savings

$

2,659,433


1,329


0.05


$

2,818,440


4,437


0.16





Money market


1,824,729


5,646


0.31



1,318,943


8,944


0.68





NOW and demand deposit


2,094,245


691


0.03



1,933,156


978


0.05





Total core deposits


6,578,407


7,666


0.12



6,070,539


14,359


0.24





Certificates of deposit


3,598,297


54,951


1.53



4,702,693


83,662


1.78





Total deposits


10,176,704


62,617


0.62



10,773,232


98,021


0.91





Borrowings


4,115,259


113,911


2.77



4,624,841


154,219


3.33




Total interest-bearing liabilities


14,291,963


176,528


1.24



15,398,073


252,240


1.64




Non-interest-bearing liabilities


428,920







430,466







Total liabilities 


14,720,883







15,828,539







Stockholders' equity


1,419,384







1,277,986







Total liabilities and stockholders' equity

$

16,140,267






$

17,106,525


























Net interest income/

















net interest rate spread (3)



$

341,902


2.17

%



$

348,269


2.09

%


Net interest-earning assets/

















net interest margin (4)

$

915,073




2.25

%

$

698,820




2.16

%


Ratio of interest-earning assets to

















interest-bearing liabilities


1.06x







1.05x































































(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




























For the



At or For the






Three Months Ended



Twelve Months Ended






December 31, 



December 31, 






2013


2012



2013


2012

Selected Returns and Financial Ratios


(Annualized)









Return on average common stockholders' equity (1)


5.33

%


5.21

%



4.50

%


4.15

%


Return on average tangible common stockholders' equity  (1) (2)


6.18



6.08




5.23



4.86



Return on average assets (1)


0.51



0.40




0.41



0.31



General and administrative expense to average assets


1.73



1.75




1.78



1.75



Efficiency ratio (3)


66.29



67.12




69.88



71.21



Net interest rate spread


2.23



2.15




2.17



2.09



Net interest margin


2.31



2.21




2.25



2.16



















Asset Quality Data (dollars in thousands)















Non-performing loans (4):
















Current








$

70,644


$

11,139




30-59 days delinquent









8,228



1,850




60-89 days delinquent









2,596



690




90 days or more delinquent









250,534



301,407



Non-performing loans









332,002



315,086




















Real estate owned









42,636



28,523




















Non-performing assets









374,638



343,609




















Net loan charge-offs 

$

7,408


$

13,871




26,102



52,084




















Non-performing loans/total loans









2.67

%


2.38

%


Non-performing loans/total assets









2.10



1.91



Non-performing assets/total assets









2.37



2.08



Allowance for loan losses/non-performing loans









41.87



46.18



Allowance for loan losses/total loans









1.12



1.10



Net loan charge-offs to average loans outstanding


0.24

%


0.41

%



0.20



0.39



















Capital Ratios (Astoria Federal) 















Tangible









9.93

%


9.24

%


Tier 1 leverage









9.93



9.24



Total risk-based









17.05



16.49



Tier 1 risk-based









15.79



15.23



















Other Data 















Cash dividends paid per common share

$

0.04


$

0.04



$

0.16


$

0.25



Book value per common share (5)









14.06



13.28



Tangible book value per common share (6)









12.19



11.38



Tangible common stockholders' equity/tangible assets (2) (7)









7.72

%


6.80

%


Mortgage loans serviced for others (in thousands)








$

1,504,654


$

1,443,672



Full time equivalent employees









1,540



1,530





































(1)

Returns on average common stockholders' equity and average tangible common stockholders' equity are calculated using net income available to common shareholders. Returns on average assets are calculated using net income. 


(2)

Tangible common stockholders' equity represents common stockholders' equity less goodwill. 


(3)

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


(4)

Non-performing loans at December 31, 2013 included $61.0 million of loans discharged in a Chapter 7 bankruptcy filing which were less than 90 days past due, of which $54.5 million were current, $5.6 million were 30-59 days delinquent and $878,000 were 60-89 days delinquent.  Such loans have been classified as non-performing loans pursuant to regulatory guidance issued in 2012.


(5)

Book value per common share represents common stockholders' equity divided by outstanding common shares, excluding unallocated Employee Stock Ownership Plan, or ESOP, shares at December 31, 2012.


(6)

Tangible book value per common share represents tangible common stockholders' equity divided by outstanding common shares, excluding unallocated ESOP shares at December 31, 2012.


(7)

Tangible assets represent assets less goodwill.




 

 


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

























END OF PERIOD BALANCES AND RATES










(Dollars in Thousands)


















































At December 31, 2013



At September 30, 2013



At December 31, 2012






Weighted




Weighted




Weighted





Average




Average




Average



  Balance


Rate (1)


  Balance


Rate (1)


  Balance


Rate (1)

Selected interest-earning assets:
















Mortgage loans, gross (2):
















Residential

$

7,802,898


3.48

%

$

8,053,827


3.54

%

$

9,420,175


3.73

%

Multi-family and commercial real estate


4,089,025


4.02



3,914,505


4.09



3,163,067


4.65


Mortgage-backed and other securities (3)


2,251,216


2.87



2,331,211


2.90



2,036,441


3.26


















Interest-bearing liabilities:
















Savings


2,493,899


0.05



2,562,927


0.05



2,802,298


0.05


Money market


1,972,136


0.25



1,913,607


0.25



1,586,556


0.74


NOW and demand deposit


2,097,478


0.04



2,133,062


0.03



2,094,733


0.03


Total core deposits


6,563,513


0.11



6,609,596


0.10



6,483,587


0.21


Certificates of deposit


3,291,797


1.50



3,450,778


1.52



3,960,371


1.55


Total deposits


9,855,310


0.57



10,060,374


0.59



10,443,958


0.72


Borrowings, net 


4,137,161


2.41



4,109,028


2.46



4,373,496


3.03


















































(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.  However, effective in 2013, non-performing residential mortgage loans which are current or less than 90 days past due are included.



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


















 

SOURCE Astoria Financial Corporation



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