Astoria Financial Corporation Reports 2015 Second Quarter Earnings Per Common Share Of $0.29

Results Include $0.11 Per Common Share Due to Impact of Tax Law Changes

Quarterly Cash Dividend of $0.04 Per Common Share Declared

Jul 22, 2015, 16:30 ET from Astoria Financial Corporation

LAKE SUCCESS, N.Y., July 22, 2015 /PRNewswire/ -- Astoria Financial Corporation (NYSE: AF) ("Astoria", or the "Company"), the holding company for Astoria Bank (the "Bank") today reported net income available to common shareholders of $29.2 million, or $0.29 diluted earnings per common share ("diluted EPS"), for the quarter ended June 30, 2015, compared to net income available to common shareholders of $20.1 million, or $0.20 diluted EPS, for the quarter ended June 30, 2014. For the six months ended June 30, 2015, net income available to common shareholders totaled $46.4 million, or $0.46 diluted EPS compared to $49.5 million, or $0.50 diluted EPS, for the comparable 2014 period.  Included in the 2015 second quarter and six month results is a reduction in income tax expense of $11.4 million ($0.11 per common share) related to the impact of income tax legislation enacted in the second quarter of 2015, primarily as applicable to New York City.  Included in the 2014 second quarter results was a $5.7 million loan loss release ($3.7 million or $0.04 per common share, after tax) resulting from the designation of non-performing residential mortgage loans as held-for-sale.  Also included in the 2014 six month results was a reduction in income tax expense of $11.5 million ($0.12 per common share) related to the impact of New York State income tax legislation enacted on March 31, 2014.

Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the quarter stated, "While we are somewhat disappointed by the lack of net growth in our loan portfolio in the second quarter, we are pleased with the continued growth of our lower cost business banking deposits as well as the fact that, in this low rate environment, our net interest margin increased slightly to 2.35% while many of our competitors have recently experienced margin contraction."

Board Declares Quarterly Cash Dividend of $0.04 Per Share The Board of Directors of the Company, at its July 22, 2015 meeting, declared a quarterly cash dividend of $0.04 per common share.  The dividend is payable on September 1, 2015 to shareholders of record as of August 14, 2015.  This is the eighty first consecutive quarterly cash dividend declared by the Company.

Second Quarter and Six Month Earnings Summary  Net interest income for the quarter ended June 30, 2015 totaled $85.2 million compared to $85.7 million for the previous quarter and $85.8 million for the 2014 second quarter.  The net interest margin for the quarter ended June 30, 2015 was 2.35%, compared to 2.34% for the previous quarter and 2.31% for the 2014 second quarter. For the six months ended June 30, 2015, net interest income totaled $170.9 million, compared to $173.7 million for the comparable 2014 period, and the net interest margin was 2.34% for the six months ended June 30, 2015, flat from 2.34% for the six months ended June 30, 2014.

For the quarter ended June 30, 2015, a $3.0 million loan loss release was recorded compared to a $343,000 release in the prior quarter and a $5.7 million loan loss release recorded in the 2014 second quarter. For the six months ended June 30, 2015, we recorded a loan loss release of $3.3 million compared to a net $4.1 million loan loss release for the comparable 2014 period.  Mr. Redman stated, "The loan loss release recorded in the second quarter reflects the continued improvement in the asset quality and change in composition of our loan portfolio."

Non-interest income for the quarter ended June 30, 2015 totaled $15.3 million, compared to $12.9 million for the previous quarter and $13.8 million for the 2014 second quarter. Non-interest income for the six months ended June 30, 2015 totaled $28.3 million compared to $27.5 million for the comparable 2014 period.  The increases for the quarter and six months ended June 30, 2015 are primarily due to increases in mortgage banking income, net. 

General and administrative ("G&A") expense for the quarter ended June 30, 2015 totaled $71.9 million compared to $70.1 million for the previous quarter and $71.6 million for the 2014 second quarter.  For the six months ended June 30, 2015, G&A expense totaled $142.0 million, relatively flat from $141.8 million for the 2014 comparable period. The linked quarterly increase was primarily attributable to an increase in compensation and benefits expense to $37.7 million for the quarter ended June 30, 2015 from $36.3 million for the previous quarter. Mr. Redman commented, "While investment in support of our strategic initiatives continued, our total G&A expense remained within our expected range of $70 - $73 million per quarter as it continued to be positively impacted by lower FDIC insurance premiums."    

New York State tax legislation, signed into law on April 13, 2015, largely conformed New York City banking income tax laws with the New York State legislation enacted in 2014, and also made certain refinements to the New York State legislation.  For Astoria, the effect of the 2015 legislation was the elimination of the $7.2 million deferred tax asset valuation allowance, and the establishment and recognition of additional state and local deferred tax assets of $4.2 million.

Balance Sheet Summary Total assets at June 30, 2015 were $15.3 billion, a decrease of $344.7 million from December 31, 2014. The decrease was primarily due to a decline in the loan portfolio which decreased $443.4 million from December 31, 2014 and totaled $11.5 billion at June 30, 2015, partially offset by an increase in the securities portfolio of $67.5 million over the same period. 

The MF/CRE mortgage loan portfolio totaled $4.8 billion at June 30, 2015, an increase of $19.1 million from December 31, 2014 and represents 42% of the total loan portfolio.  For the quarter and six months ended June 30, 2015, MF/CRE loan originations totaled $192.8 million and $452.7 million, respectively, compared to $353.5 million and $571.5 million, for the 2014 comparable periods. The MF/CRE loan production for the 2015 second quarter and six months ended June 30, 2015 were originated with weighted average loan-to-value ratios of approximately 51%, and weighted average debt coverage ratios of approximately 1.38 and 1.50, respectively, for the quarter and six months ended June 30, 2015. MF/CRE loan prepayments for the quarter and six months ended June 30, 2015 totaled $212.6 million and $358.8 million, respectively, up from $56.6 million and $169.5 million for the comparable 2014 periods. Mr. Redman commented, "During the second quarter, we experienced a sharp increase in prepayment activity in our MF/CRE loan portfolio, due in part to some of our competitors' willingness to offer more cash on loans, or loosened covenants, terms that we did not feel comfortable offering in the current interest rate environment."  At June 30, 2015, the MF/CRE pipeline totaled approximately $236.3 million.    

The residential mortgage loan portfolio totaled $6.4 billion at June 30, 2015, compared to $6.9 billion at December 31, 2014.  For the quarter and six months ended June 30, 2015, residential loan originations for portfolio totaled $222.1 million and $362.6 million, respectively, compared to $83.2 million and $181.5 million for the 2014 comparable periods.  The weighted average loan-to-value ratio of the residential loan production for portfolio at origination was approximately 60% for both the quarter and six months ended June 30, 2015.  Residential loan prepayments for the quarter and six months ended June 30, 2015 totaled $392.9 million and $672.7 million, respectively, up from $289.9 million and $515.1 million for the comparable 2014 periods. At June 30, 2015, the residential mortgage pipeline totaled approximately $221.0 million.

Deposits totaled $9.2 billion at June 30, 2015, a decrease of $277.1 million from December 31, 2014.  This decrease was primarily due to a decrease in higher cost certificates of deposit, partially offset by net increases in lower cost core deposits, particularly consumer and business checking deposits. Core deposits totaled $6.9 billion, representing 75% of total deposits, and had a weighted average rate of 12 basis points at June 30, 2015.    

Stockholders' equity totaled $1.63 billion, or 10.65% of total assets at June 30, 2015, an increase of $48.5 million from December 31, 2014.  Astoria's capital levels continue to exceed the minimum levels required to be designated as "well-capitalized" for bank regulatory purposes. At June 30, 2015, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 10.95%, 18.83%, 18.83% and 20.06%, respectively for Astoria Bank, and 9.83%, 15.59%, 16.96% and 18.19%, respectively for Astoria Financial Corporation.  At June 30, 2015, Astoria Financial Corporation's tangible common equity ratio was 8.69%.

Asset Quality Non-performing loans ("NPLs"), totaled $122.8 million, or 1.07% of total loans, at June 30, 2015, compared to $127.8 million, or 1.07% of total loans, at December 31, 2014. Included in the NPLs at June 30, 2015 is $56.7 million of loans which are current or less than 90 days past due compared to $65.0 million at December 31, 2014. Total delinquent loans and NPLs at June 30, 2015 were $216.0 million compared to $227.7 million at December 31, 2014. Net charge-offs for the quarter ended June 30, 2015 totaled $33,000 compared to $757,000 in the previous quarter and $9.7 million in the 2014 second quarter.  Other real estate owned declined to $23.4 million at June 30. 2015, compared to $35.7 million at December 31, 2014.

Future Outlook Commenting on the Company's future outlook, Mr. Redman stated, "With the 30 year conforming mortgage rate north of 4%, we believe that the elevated pace of prepayment activity which we experienced in the first half of 2015 will slow during the second half of the year.   

We also believe that we will continue to build upon the momentum we have achieved in business banking where, over the past twelve months, highly desirable business checking account balances have grown by 16% and total business deposits have grown by 22%.  During that same time period, total outstanding business banking loans, including commercial real estate loans originated through our business banking operations, have grown by 49%.  To further enhance our business banking growth, we plan on opening a branch in Long Island City, Queens, before the end of the year, primarily to provide further support to our business bankers."

Earnings Conference Call July 23, 2015 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, July 23, 2015 at 10:00 a.m. (ET).   The toll-free dial-in number is (877) 709-8150.  A telephone replay will be available from July 23, 2015 at 1:00 p.m. (ET) through midnight (ET) Saturday, August 1, 2015.  The replay number is (877) 660-6853, ID# 13612522.  The conference call will also be simultaneously webcast on the Company's website www.astoriabank.com and archived for one year.

About Astoria Financial Corporation Astoria Financial Corporation, with assets of $15.3 billion, is the holding company for Astoria Bank.  Established in 1888, Astoria Bank, with deposits in New York totaling $9.2 billion, is the second largest thrift depository in New York and provides its retail and business customers and local communities it serves with quality financial products and services through 87 convenient banking branch locations, a business banking office in Manhattan, and multiple delivery channels, including its flexible mobile banking app.  Astoria Bank 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 Bank originates 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 and 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 13 states and the District of Columbia.

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, or the Securities Act, 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 that may be subject to circumstances beyond our control; increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment; changes in deposit flows, loan demand or collateral values; changes in accounting principles, policies or guidelines; changes in 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; 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; 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; our ability to successfully implement technological changes; our ability to successfully  consummate new business initiatives;  litigation or other matters before regulatory agencies, whether currently existing or commencing in the future; or our ability to implement enhanced risk management policies, procedures and controls commensurate with shifts in our business strategies and regulatory expectations. 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

June 30,

December 31,

2015

2014

ASSETS

Cash and due from banks

$       168,790

$       143,185

Securities available-for-sale

428,745

384,359

Securities held-to-maturity

(fair value of $2,152,091 and $2,131,371, respectively)

2,156,882

2,133,804

Federal Home Loan Bank of New York stock, at cost

138,384

140,754

Loans held-for-sale, net

8,318

7,640

Loans receivable:

Mortgage loans, net

11,270,140

11,707,785

Consumer and other loans, net

243,916

249,663

11,514,056

11,957,448

Allowance for loan losses

(107,500)

(111,600)

Total loans receivable, net

11,406,556

11,845,848

Mortgage servicing rights, net

11,463

11,401

Accrued interest receivable

36,752

36,628

Premises and equipment, net

110,950

111,622

Goodwill

185,151

185,151

Bank owned life insurance

435,144

430,768

Real estate owned, net

23,399

35,723

Other assets

184,822

173,138

TOTAL ASSETS

$  15,295,356

$  15,640,021

LIABILITIES

Deposits

$    9,227,770

$    9,504,909

Federal funds purchased

370,000

455,000

Reverse repurchase agreements

1,100,000

1,100,000

Federal Home Loan Bank of New York advances

2,340,000

2,384,000

Other borrowings, net

248,957

248,691

Mortgage escrow funds

132,902

115,400

Accrued expenses and other liabilities

247,205

251,951

TOTAL LIABILITIES

13,666,834

14,059,951

STOCKHOLDERS' EQUITY

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

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

and outstanding)

129,796

129,796

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

166,494,888 shares issued; and 100,791,839 and 99,940,399 shares

outstanding, respectively)

1,665

1,665

Additional paid-in capital

895,984

897,049

Retained earnings

2,024,611

1,992,833

Treasury stock (65,703,049 and 66,554,489 shares, at cost, respectively)

(1,357,727)

(1,375,322)

Accumulated other comprehensive loss

(65,807)

(65,951)

TOTAL STOCKHOLDERS' EQUITY

1,628,522

1,580,070

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$  15,295,356

$  15,640,021

 

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands, Except Share Data)

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Interest income:

Residential mortgage loans

$

51,375

$

62,294

$

105,337

$

127,248

Multi-family and commercial real estate mortgage loans

48,611

43,347

96,103

86,737

Consumer and other loans

2,242

2,085

4,432

4,171

Mortgage-backed and other securities

15,238

14,116

30,308

27,793

Interest-earning cash accounts

107

80

196

149

Federal Home Loan Bank of New York stock

1,461

1,458

2,983

3,291

Total interest income

119,034

123,380

239,359

249,389

Interest expense:

Deposits

9,944

12,823

20,673

26,052

Borrowings

23,940

24,783

47,815

49,593

Total interest expense

33,884

37,606

68,488

75,645

Net interest income

85,150

85,774

170,871

173,744

Provision for loan losses credited to operations

(2,967)

(5,742)

(3,310)

(4,111)

Net interest income after provision for loan losses

88,117

91,516

174,181

177,855

Non-interest income:

Customer service fees

8,871

9,030

17,082

18,050

Other loan fees

553

647

1,106

1,255

Gain on sales of securities

72

-

72

-

Mortgage banking income, net

2,076

610

2,403

1,410

Income from bank owned life insurance

2,179

2,139

4,376

4,128

Other

1,591

1,419

3,236

2,671

Total non-interest income

15,342

13,845

28,275

27,514

Non-interest expense:

General and administrative:

Compensation and benefits

37,655

34,415

73,936

67,803

Occupancy, equipment and systems

18,980

17,793

38,638

35,967

Federal deposit insurance premium

4,335

7,277

8,536

15,846

Advertising

2,801

2,438

5,065

4,150

Other

8,105

9,670

15,813

18,050

Total non-interest expense

71,876

71,593

141,988

141,816

Income before income tax expense

31,583

33,768

60,468

63,553

Income tax expense

152

11,468

9,730

9,704

Net income

31,431

22,300

50,738

53,849

Preferred stock dividends

2,194

2,194

4,388

4,388

Net income available to common shareholders

$

29,237

$

20,106

$

46,350

$

49,461

Basic and diluted earnings per common share

$

0.29

$

0.20

$

0.46

$

0.50

Basic and diluted weighted average common shares outstanding

99,664,442

98,275,886

99,459,376

98,191,434

 

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

AVERAGE BALANCE SHEETS

(Dollars in Thousands)

For the Three Months Ended June 30,

2015

2014

Average

Average

Average

Yield/

Average

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

(Annualized)

(Annualized)

Assets:

Interest-earning assets:

Mortgage loans (1):

Residential

$

6,585,358

$

51,375

3.12

%

$

7,731,250

$

62,294

3.22

%

Multi-family and commercial real estate

4,808,839

48,611

4.04

4,297,463

43,347

4.03

Consumer and other loans (1)

250,253

2,242

3.58

238,164

2,085

3.50

Total loans

11,644,450

102,228

3.51

12,266,877

107,726

3.51

Mortgage-backed and other securities (2)

2,551,521

15,238

2.39

2,325,214

14,116

2.43

Interest-earning cash accounts

147,230

107

0.29

104,033

80

0.31

Federal Home Loan Bank stock

137,635

1,461

4.25

147,224

1,458

3.96

Total interest-earning assets

14,480,836

119,034

3.29

14,843,348

123,380

3.32

Goodwill

185,151

185,151

Other non-interest-earning assets

730,500

674,527

Total assets

$

15,396,487

$

15,703,026

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Savings

$

2,211,870

276

0.05

$

2,411,953

301

0.05

Money market

2,421,514

1,599

0.26

2,103,462

1,160

0.22

NOW and demand deposit

2,284,443

194

0.03

2,136,667

175

0.03

Total core deposits

6,917,827

2,069

0.12

6,652,082

1,636

0.10

Certificates of deposit

2,384,967

7,875

1.32

3,016,811

11,187

1.48

Total deposits

9,302,794

9,944

0.43

9,668,893

12,823

0.53

Borrowings

4,052,628

23,940

2.36

4,127,661

24,783

2.40

Total interest-bearing liabilities

13,355,422

33,884

1.01

13,796,554

37,606

1.09

Non-interest-bearing liabilities

428,607

343,589

Total liabilities

13,784,029

14,140,143

Stockholders' equity

1,612,458

1,562,883

Total liabilities and stockholders' equity

$

15,396,487

$

15,703,026

Net interest income/

net interest rate spread (3)

$

85,150

2.28

%

$

85,774

2.23

%

Net interest-earning assets/

net interest margin (4)

$

1,125,414

2.35

%

$

1,046,794

2.31

%

Ratio of interest-earning assets to

interest-bearing liabilities

1.08x

1.08x

 

(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 Six Months Ended June 30,

2015

2014

Average

Average

Average

Yield/

Average

Yield/

Balance

Interest

Cost

Balance

Interest

Cost

(Annualized)

(Annualized)

Assets:

Interest-earning assets:

Mortgage loans (1):

Residential

$

6,700,820

$

105,337

3.14

%

$

7,857,298

$

127,248

3.24

%

Multi-family and commercial real estate

4,820,377

96,103

3.99

4,225,270

86,737

4.11

Consumer and other loans (1)

252,808

4,432

3.51

238,561

4,171

3.50

Total loans

11,774,005

205,872

3.50

12,321,129

218,156

3.54

Mortgage-backed and other securities (2)

2,527,947

30,308

2.40

2,294,045

27,793

2.42

Interest-earning cash accounts

139,033

196

0.28

100,299

149

0.30

Federal Home Loan Bank stock

141,046

2,983

4.23

149,401

3,291

4.41

Total interest-earning assets

14,582,031

239,359

3.28

14,864,874

249,389

3.36

Goodwill

185,151

185,151

Other non-interest-earning assets

725,667

666,483

Total assets

$

15,492,849

$

15,716,508

Liabilities and stockholders' equity:

Interest-bearing liabilities:

Savings

$

2,221,086

551

0.05

$

2,440,149

605

0.05

Money market

2,400,339

3,154

0.26

2,065,862

2,420

0.23

NOW and demand deposit

2,246,517

383

0.03

2,109,164

340

0.03

Total core deposits

6,867,942

4,088

0.12

6,615,175

3,365

0.10

Certificates of deposit

2,467,172

16,585

1.34

3,084,022

22,687

1.47

Total deposits

9,335,114

20,673

0.44

9,699,197

26,052

0.54

Borrowings

4,143,921

47,815

2.31

4,139,474

49,593

2.40

Total interest-bearing liabilities

13,479,035

68,488

1.02

13,838,671

75,645

1.09

Non-interest-bearing liabilities

412,890

330,332

Total liabilities

13,891,925

14,169,003

Stockholders' equity

1,600,924

1,547,505

Total liabilities and stockholders' equity

$

15,492,849

$

15,716,508

Net interest income/

net interest rate spread (3)

$

170,871

2.26

%

$

173,744

2.27

%

Net interest-earning assets/

net interest margin (4)

$

1,102,996

2.34

%

$

1,026,203

2.34

%

Ratio of interest-earning assets to

interest-bearing liabilities

1.08x

1.07x

 

(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

Six Months Ended

June 30,

June 30,

2015

2014

2015

2014

Selected Returns and Financial Ratios (annualized)

Return on average common stockholders' equity (1)

7.89

%

5.61

%

6.30

%

6.98

%

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

9.01

6.44

7.21

8.03

Return on average assets (1)

0.82

0.57

0.65

0.69

General and administrative expense to average assets

1.87

1.82

1.83

1.80

Efficiency ratio (3)

71.52

71.87

71.30

70.46

Net interest rate spread

2.28

2.23

2.26

2.27

Net interest margin

2.35

2.31

2.34

2.34

Selected Non-GAAP Returns and Financial Ratios (annualized) (4)

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

4.81

%

5.61

%

4.75

%

5.36

%

Non-GAAP return on average tangible common stockholders' equity (1) (2)

5.50

6.44

5.44

6.16

Non-GAAP return on average assets (1)

0.52

0.57

0.51

0.54

Asset Quality Data (dollars in thousands)

Non-performing loans:

Current

$

48,851

$

62,918

30-59 days delinquent

4,861

6,082

60-89 days delinquent

2,968

2,557

90 days or more delinquent

66,155

38,170

Non-performing loans

122,835

109,727

Non-performing residential mortgage loans held-for-sale

-

186,312

Real estate owned

23,399

44,144

Non-performing assets

$

146,234

$

340,183

Net loan charge-offs

$

33

$

9,658

$

790

$

16,289

Non-performing loans/total loans

1.07

%

0.91

%

Non-performing loans/total assets

0.80

0.70

Non-performing assets/total assets

0.96

2.16

Allowance for loan losses/non-performing loans

87.52

108.09

Allowance for loan losses/total loans

0.93

0.98

Net loan charge-offs to average loans outstanding (annualized)

0.00

%

0.31

%

0.01

0.26

Regulatory Capital Ratios (5)

Astoria Bank:

Tier 1 leverage

10.95

%

10.32

%

Common equity tier 1 risk-based

18.83

N/A

Tier 1 risk-based

18.83

17.48

Total risk-based

20.06

18.73

Astoria Financial Corporation:

Tier 1 leverage

9.83

%

N/A

Common equity tier 1 risk-based

15.59

N/A

Tier 1 risk-based

16.96

N/A

Total risk-based

18.19

N/A

Other Data

Cash dividends paid per common share

$

0.04

$

0.04

$

0.08

$

0.08

Book value per common share

14.87

14.54

Tangible book value per common share

13.03

12.68

Tangible common stockholders' equity/tangible assets (2) (6)

8.69

%

8.12

%

Mortgage loans serviced for others (in thousands)

$

1,420,338

$

1,474,634

Full time equivalent employees

1,579

1,560

 

(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)

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 June 30, 2015 and six months ended June 30, 2015 and 2014.

(5)

The regulatory capital ratios presented as of June 30, 2015 represent calculations under the Basel III guidelines which became effective for Astoria Bank and Astoria Financial Corporation on January 1, 2015 and the Dodd-Frank Act.  The  regulatory capital ratios presented as of June 30, 2014 were calculated under rules effective at that time.  Prior to 2015, Astoria Financial Corporation was not subject to regulatory capital requirements.

(6)

Tangible assets represent assets less goodwill.

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

END OF PERIOD BALANCES AND RATES

(Dollars in Thousands)

At June 30, 2015

At March 31, 2015

At June 30, 2014

Weighted

Weighted

Weighted

Average

Average

Average

  Balance

Rate (1)

  Balance

Rate (1)

  Balance

Rate (1)

Selected interest-earning assets:

Mortgage loans, gross (2):

Residential

$

6,367,966

3.33

%

$

6,614,151

3.34

%

$

7,302,951

3.41

%

Multi-family and commercial real estate

4,793,658

3.71

4,848,942

3.75

4,424,804

3.90

Mortgage-backed and other securities (3)

2,585,627

2.75

2,532,945

2.78

2,353,369

2.84

Interest-bearing liabilities:

Savings

2,186,470

0.05

2,230,516

0.05

2,371,896

0.05

Money market

2,446,428

0.27

2,407,520

0.24

2,172,452

0.23

NOW and demand deposit

2,287,319

0.03

2,301,022

0.03

2,151,980

0.03

Total core deposits

6,920,217

0.12

6,939,058

0.11

6,696,328

0.10

Certificates of deposit

2,307,553

1.31

2,467,971

1.36

2,963,043

1.50

Total deposits

9,227,770

0.42

9,407,029

0.44

9,659,371

0.53

Borrowings, net

4,058,957

2.33

4,113,824

2.30

4,200,426

2.34

(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, except non-performing residential mortgage loans which are current or less than 90 days past due.

(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 US generally accepted accounting principles (GAAP or GAAP measures) excluding the adjustment detailed in the following table (non-GAAP measures) provides a meaningful comparison for effectively evaluating Astoria's operating results.

For the Three Months Ended

June 30, 2015

June 30, 2014

GAAP

Adjustment (1)

Non-GAAP

GAAP

Adjustment

Non-GAAP

Income before income tax expense

$      31,583

$             -

$      31,583

$      33,768

$             -

$      33,768

Income tax expense

152

11,404

11,556

11,468

-

11,468

Net income

31,431

(11,404)

20,027

22,300

-

22,300

Preferred stock dividends

2,194

-

2,194

2,194

-

2,194

Net income available to common shareholders

$      29,237

$    (11,404)

$      17,833

$      20,106

$             -

$      20,106

Basic and diluted earnings per common share

$          0.29

$        (0.11)

$          0.18

$          0.20

$             -

$          0.20

For the Six Months Ended

June 30, 2015

June 30, 2014

GAAP

Adjustment (1)

Non-GAAP

GAAP

Adjustment (2)

Non-GAAP

Income before income tax expense

$      60,468

$             -

$      60,468

$      63,553

$             -

$      63,553

Income tax expense

9,730

11,404

21,134

9,704

11,487

21,191

Net income

50,738

(11,404)

39,334

53,849

(11,487)

42,362

Preferred stock dividends

4,388

-

4,388

4,388

-

4,388

Net income available to common shareholders

$      46,350

(11,404)

$      34,946

$      49,461

$    (11,487)

$      37,974

Basic and diluted earnings per common share

$          0.46

$        (0.11)

$          0.35

$          0.50

$        (0.12)

$          0.38

Non-GAAP returns and earnings per common share are calculated substituting non-GAAP net income and non-GAAP net income available to common shareholders for net income and net income available to common shareholders in the corresponding calculation.

(1)

The 2015 adjustment represents the effects of income tax legislation enacted in the 2015 second quarter, primarily related to New York City, which was reflected in our net deferred tax asset in the statement of financial condition with a corresponding adjustment to income tax expense in the period of enactment.

(2)

The 2014 adjustment represents the effects of income tax legislation enacted in the 2014 first quarter, related to New York State, which was reflected in our net deferred tax asset in the statement of financial condition with a corresponding adjustment to income tax expense in the period of enactment.

 

SOURCE Astoria Financial Corporation



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http://www.astoriabank.com