Astoria Financial Reports 7.4% Increase in First Quarter Operating EPS to $1.16 (Cash Operating EPS of $1.29)

Board Increases Quarterly Cash Dividend by 19.2% to $0.31 Per Common Share



Apr 19, 2001, 01:00 ET from Astoria Financial Corporation

    LAKE SUCCESS, N.Y., April 19 /PRNewswire/ --
 Astoria Financial Corporation (Nasdaq:   ASFC) ("Astoria"), the holding company
 for Astoria Federal Savings and Loan Association ("Astoria Federal"), today
 reported operating earnings(1) of $56.7 million, or $1.16 diluted operating
 earnings per common share for the quarter ended March 31, 2001 compared to
 operating earnings of $54.8 million, or $1.08 diluted operating earnings per
 common share for the quarter ended March 31, 2000.
     Operating earnings for the quarter ended March 31, 2001 generated an
 annualized return on average stockholders' equity of 14.47% and a return on
 average assets of 1.01%.
     Including non-operating items detailed in the footnote below, the Company
 reported net income for the quarter ended March 31, 2001 of $54.4 million, or
 $1.11 diluted earnings per common share compared to $55.5 million, or $1.09
 diluted earnings per common share for the quarter ended March 31, 2000.
     Commenting on the Company's results, George L. Engelke, Jr., Chairman,
 President and Chief Executive Officer said, "We are very pleased with the
 solid financial performance achieved in the 2001 first quarter.  We
 accomplished these results by remaining focused on maintaining a very low
 credit risk profile, carefully managing our assets and liabilities and
 operating efficiently."
 
     Operating Cash Earnings and Related Returns
     Operating cash earnings represent the amount by which tangible equity
 changes each period due to operating earnings plus non-cash charges for
 goodwill amortization and amortization relating to certain employee stock
 plans.  Operating cash earnings is a measure of Astoria's financial capacity
 for growth, share repurchases and/or payment of dividends.  Operating cash
 earnings increased tangible equity in the 2001 first quarter by $63.1 million,
 or 11.3% more than operating earnings.  Please see attached table
 "CONSOLIDATED SCHEDULES OF OPERATING EARNINGS AND OPERATING CASH EARNINGS."
     Operating cash earnings available to common shareholders were
 $61.6 million, or $1.29 per diluted operating cash earnings per common share,
 for the 2001 first quarter compared to $60.0 million, or $1.21 diluted
 operating cash earnings per common share, for the 2000 first quarter.  The
 annualized cash returns on average tangible stockholders' equity and average
 assets for the quarter ended March 31, 2001 were 18.49% and 1.13%,
 respectively.
 
     Stock Repurchase Program
     During the first quarter, Astoria, under its seventh stock repurchase
 program, purchased 1.2 million shares of its common stock at an average price
 per share of $53.59.  Since August 2000, the inception of the current program,
 the Company has repurchased 2.5 million shares of the 5 million shares
 authorized under the program.  Additional purchases may be made from time to
 time through August 15, 2002 in open-market or privately negotiated
 transactions.
 
     Board Increases Quarterly Cash Dividend by 19.2%
     The Board of Directors, at their April 18, 2001 meeting, declared a
 quarterly cash dividend of $0.31 per common share, representing a 19.2%
 increase.  The dividend will be payable on June 1, 2001 to shareholders of
 record at the close of business on May 15, 2001.  This is the twenty-fourth
 consecutive quarterly cash dividend declared by the Company.  Commenting on
 the Board's action, Mr. Engelke said, "The action taken by the Board of
 Directors reflects their continued confidence in the fundamental strength of
 the Company and its future prospects."
 
     First Quarter Earnings Summary
     Net interest income for the quarter ended March 31, 2001 totaled
 $123.4 million compared to $132.2 million for the comparable 2000 period and
 $122.3 million for the previous quarter.  The year over year decrease is
 primarily attributable to a decrease in average interest earning assets and a
 lower net interest margin.  Astoria's net interest margin was 2.30% for the
 quarter ended March 31, 2001, down from 2.40% for the 2000 first quarter, but
 up four basis points from the 2000 fourth quarter.
     Non-interest income for the quarter ended March 31, 2001 totaled
 $22.7 million compared to $18.3 million (which includes a gain of $1.2 million
 on the disposition of a banking office) for the 2000 first quarter.  The
 increase in non-interest income was due primarily to the income derived from
 the BOLI program implemented in the 2000 fourth quarter.  Importantly however,
 non-interest income also includes an increase in customer service and other
 loan fees of $1.9 million, or 16.6%, to $13.1 million.  The Company expects
 continued growth in customer service and other loan fees during 2001.
     General and administrative expense ("G&A"), excluding non-cash
 amortization expense relating to certain employee stock plans ("cash G&A"),
 for the quarter ended March 31, 2001, totaled $43.1 million compared to
 $44.4 million for the comparable 2000 period.  Importantly, Astoria's ratio of
 operating cash G&A expense to average assets for the quarter ended March 31,
 2001 was 0.77% compared to 0.79% for the comparable 2000 period.  The
 operating cash efficiency ratio for the quarter ended March 31, 2001 was
 29.48% compared to 29.71% for the comparable 2000 period.  Mr. Engelke
 commented, "Continuing to maintain these important ratios at these extremely
 low levels, which are significantly better than our industry peers,
 contributes to our strong financial performance.  We will continue our strong
 focus on cost control in 2001."
 
     Balance Sheet Summary
     Total assets at March 31, 2001 totaled $22.6 billion compared to
 $22.3 billion at the end of 2000.  Mr. Engelke commented, "We continued to
 reposition our balance sheet through increases in deposits and loans, our core
 businesses, and decreases in securities and borrowings, while limiting growth.
 As shown in the following table, the combined result of the aforementioned
 strategy coupled with positive earnings and a significant reduction in the net
 unrealized loss on securities charged to capital was a continued improvement
 in our book value and tangible book value per common share."
 
    Progress in Repositioning Balance Sheet and Increasing Shareholder Value
                  (Dollars in millions, except per share data)
 
                                                                      % Change
                                                                      3/31/01-
                   3/31/01  12/31/00    9/30/00    6/30/00   3/31/00   3/31/00
 
     Assets       $22,642    $22,337    $22,202   $22,201   $22,590      +0.2%
     Loans        $11,500    $11,424    $11,086   $10,836   $10,545      +9.1%
     MBS           $7,722     $7,875     $8,037    $8,424    $8,895     -13.2%
     Borrowings   $10,150    $10,197    $10,452   $10,621   $11,010      -7.8%
     Deposits     $10,338    $10,072     $9,852    $9,815    $9,781      +5.7%
     Equity        $1,603     $1,513     $1,365    $1,279    $1,254     +27.8%
     Book Value    $31.73    $ 29.47     $26.23    $24.17    $23.46     +35.3%
     Tangible
      Book Value   $27.64    $ 25.35     $22.05    $19.95    $19.19     +44.0%
 
     Mortgage loan originations and purchases for the quarter ended March 31,
 2001 increased 24.2% to $709.0 million from $570.7 million for the quarter
 ended March 31, 2000.  Mortgage loan activity was concentrated primarily in
 one-to-four family residential mortgage loans.  Loan prepayments in the first
 quarter totaled $495.5 million compared to $208.5 million in the 2000 first
 quarter.  "The growth in mortgage loan originations and purchases for the
 first quarter is the direct result of heightened refinance activity.  This
 activity, evidenced also by the increases in loan prepayments, limited the net
 growth in loans for the quarter," Mr. Engelke noted.
     Loans held-for-investment at March 31, 2001 totaled $11.5 billion compared
 to $11.4 billion at December 31, 2000 and $10.5 billion at March 31, 2000.
 While the loan portfolio continued to grow over the past year, non-performing
 loans declined to $33.9 million, or 0.15% of total assets at March 31, 2001,
 from $47.2 million, or 0.21% of total assets at March 31, 2000.  In addition,
 the ratio of the allowance for loan losses to non-performing loans increased
 to 237.6% at March 31, 2001 from 164.0% at March 31, 2000.  Commenting on the
 extremely low level of non-performing assets, Mr. Engelke said, "Our constant
 attention to credit quality in our lending activities is clearly evident in
 our very superior asset quality ratios.  Additionally, because of our
 conservative lending policies and the fact that 94% of our loan portfolio is
 secured by residential real estate, we are well positioned should the economy
 continue to show signs of weakness."
     Mortgage-backed securities decreased $286.1 million primarily due to
 repayments during the quarter ended March 31, 2001, offset by an improvement
 of $133.2 million in unrealized loss on mortgage-backed securities, for a net
 reduction in mortgage-backed securities for the quarter of $152.9 million to
 $7.7 billion, compared to $7.9 billion at December 31, 2000.
     Deposits at March 31, 2001 totaled $10.3 billion, an increase of
 $266.0 million from the previous quarter end, representing an annualized
 growth rate of 10.6%.  Core deposits, which include passbook savings, checking
 and money market accounts, increased $193.3 million from the previous quarter
 to $5.1 billion, or 49.5% of total deposits compared to 48.9% at December 31,
 2000.  Commenting on the deposit growth, Mr. Engelke noted, "We have continued
 to experience very healthy deposit growth as evidenced by the $556.8 million
 increase in deposits over the past twelve months and the impressive
 $897.5 million increase over the past eighteen months.  Importantly, during
 the respective periods, core deposits increased $320.6 million and
 $532.5 million, clearly enhancing the value of our franchise.  It is also
 important to note that our checking account deposits have recently surpassed
 the $1 billion level.  Business checking accounts, which now comprise 8.4% of
 total checking balances, continued to grow during the 2001 first quarter,
 increasing 13.0% from the prior quarter end."
     Borrowings totaled $10.1 billion at March 31, 2001, down slightly from
 December 31, 2000, and declined $860.1 million, or 7.8%, from March 31, 2000.
     Stockholders' equity was $1.6 billion, or 7.08% of total assets at
 March 31, 2001, compared to $1.5 billion, or 6.77% of total assets, at
 December 31, 2000.  The increase in stockholders' equity is attributable to
 the positive effects of net income and a decrease of $94.8 million in the
 unrealized loss on securities available-for-sale, net of taxes, offset by the
 repurchase of common stock and dividends paid.  Astoria Federal continues to
 maintain capital ratios in excess of regulatory requirements.  At March 31,
 2001, core, tangible and risk-based capital ratios were 6.82%, 6.82% and
 16.46%, respectively.
 
     Potential Impact of Changes in Accounting for Business Combinations
     The Financial Accounting Standards Board ("FASB") issued an exposure draft
 on February 14, 2001, "Business Combinations and Intangible Assets" ("the
 Draft") which is a limited revision of a previous exposure draft on the same
 topic issued September 7, 1999.  In the Draft, the FASB indicated that the
 amortization of goodwill created with respect to business combinations
 completed both before and after the effective date of any final pronouncement
 would be discontinued.  Should the Draft be formally implemented, we
 anticipate it to be effective for the third quarter of 2001.  At such time,
 Astoria would cease recording goodwill amortization amounting to approximately
 $19.1 million annually, or approximately $0.40 per diluted common share, based
 on shares currently outstanding.
 
     Future Outlook, Risk Factors and Forward Looking Statement
     This release may contain certain forward-looking statements and may be
 identified by the use of such words as "believe," "expect," "anticipate,"
 "should," "planned," "estimated," and "potential."  Examples of forward
 looking statements include, but are not limited to, estimates with respect to
 the financial condition, results of operations and business of the Company
 that are subject to various factors which could cause actual results to differ
 materially from these estimates.  These factors include, but are not limited
 to, general economic conditions; changes in interest rates, deposit flows,
 loan demand, real estate values, and competition; changes in accounting
 principles, policies, or guidelines; changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory, and technological
 factors affecting the Company's operations, pricing, products, and services.
     Commenting on the current operating environment, Mr. Engelke stated, "With
 a Federal Reserve direction toward easing interest rates, we remain cautiously
 optimistic that the current environment will continue to positively affect the
 net interest margin and net interest income and present us with profitable
 opportunities for growth.  However, the actual amount of interest rate
 decreases as well as the degree of steepening of the U.S. Treasury yield curve
 will be the major determinants of the extent of the positive impact on our net
 interest margin and net interest income.  If, in fact, profitable asset growth
 opportunities remain limited, we will continue to limit growth.  We expect, in
 any event, to continue to repurchase our stock and reposition the balance
 sheet.  The result should be moderate growth in operating earnings per share
 for the year 2001."
 
     Astoria Financial Corporation, the holding company for Astoria Federal
 Savings and Loan Association with assets of $22.6 billion, is the second
 largest thrift institution in New York and sixth largest in the United States.
 Astoria Federal, through its 86 banking offices, provides retail banking,
 mortgage, consumer and small business loan services to 700,000 customers.
 Astoria commands the third 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 originates
 mortgage loans through an extensive broker network and/or loan production
 offices in fourteen states: New York, New Jersey, Connecticut, Pennsylvania,
 Ohio, Massachusetts, Delaware, Maryland, Illinois, Virginia, North Carolina,
 South Carolina, Georgia and Florida.
 
     Note:  Astoria Financial Corporation's news releases are available on its
 website at http://www.astoriafederal.com
 
     (1) For the quarter ended March 31, 2001, operating earnings and related
 returns exclude from net income the cumulative effect of an accounting change,
 net of tax, of $2.3 million, or $0.05 per diluted common share, related to the
 implementation of SFAS No. 133 as previously disclosed.   For the quarter
 ended March 31, 2000, operating earnings and related returns exclude from net
 income the net gain on the disposition of a banking office, net of tax, of
 $718,000, or $0.01 per diluted common share.
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     (In Thousands, Except Share Data)
 
                                                           At             At
                                                    March 31,   December 31,
                                                         2001           2000
     ASSETS
     Cash and due from banks                         $145,095       $135,726
     Federal funds sold and repurchase agreements     729,762        171,525
     Mortgage-backed securities available-for-sale  6,923,790      7,011,185
     Other securities available-for-sale              700,967        692,037
     Mortgage-backed securities held-to-maturity
      (fair value of $807,294 and $866,938,
      respectively)                                   797,989        863,529
     Other securities held-to-maturity (fair
      value of $723,454 and $830,479, respectively)   719,530        848,662
     Federal Home Loan Bank of New York stock         285,250        285,250
     Loans held-for-sale                               22,191         13,545
     Loans receivable:
      Mortgage loans, net                          11,310,286     11,239,141
      Consumer and other loans, net                   189,893        185,308
                                                   11,500,179     11,424,449
      Less allowance for loan losses                   80,634         79,931
      Total loans receivable, net                  11,419,545     11,344,518
     Mortgage servicing rights, net                    38,328         40,962
     Accrued interest receivable                      110,010        109,439
     Premises and equipment, net                      152,837        154,582
     Goodwill                                         199,838        204,649
     Bank owned life insurance                        255,747        251,565
     Other assets                                     140,869        209,628
 
     TOTAL ASSETS                                 $22,641,748    $22,336,802
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Liabilities:
      Deposits                                    $10,337,692    $10,071,687
      Reverse repurchase agreements                 7,785,000      7,785,000
      Federal Home Loan Bank of New York advances   1,864,000      1,910,000
      Other borrowings                                500,729        502,371
      Mortgage escrow funds                           159,679        116,487
      Accrued expenses and other liabilities          266,931        313,094
 
     TOTAL LIABILITIES                             20,914,031     20,698,639
 
     Guaranteed preferred beneficial interest in
      junior subordinated debentures                  125,000        125,000
 
     Stockholders' equity:
      Preferred stock, $1.00 par value; 5,000,000
       shares authorized:
         Series A (325,000 shares authorized and
          0 shares issued and outstanding)                 --             --
         Series B (2,000,000 shares authorized,
           issued and outstanding)                      2,000          2,000
      Common stock, $.01 par value; (200,000,000
       shares authorized; 55,498,296 shares issued;
       and 48,938,303 and 49,643,554 shares
       outstanding, respectively)                         555            555
      Additional paid-in capital                      813,426        807,357
      Retained earnings                             1,093,974      1,059,048
      Treasury stock (6,559,993 and 5,854,742
       shares, at cost, respectively)               (250,249)      (203,632)
      Accumulated other comprehensive income:
       Net unrealized loss on securities, net
        of taxes                                     (26,231)      (121,043)
      Unallocated common stock held by ESOP          (30,758)       (31,122)
 
     TOTAL STOCKHOLDERS' EQUITY                     1,602,717      1,513,163
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $22,641,748    $22,336,802
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     CONSOLIDATED STATEMENTS OF INCOME
     (In Thousands, Except Share Data)
 
                                                          Three Months Ended
                                                              March 31,
                                                         2001           2000
     Interest income:
      Mortgage loans                                 $203,191       $183,712
      Consumer and other loans                          4,879          4,294
      Mortgage-backed securities                      127,716        154,024
      Other securities                                 32,089         32,390
      Federal funds sold and repurchase agreements      4,678          4,099
     Total interest income                            372,553        378,519
     Interest expense:
      Deposits                                        105,564         96,098
      Borrowed funds                                  143,628        150,219
     Total interest expense                           249,192        246,317
 
     Net interest income                              123,361        132,202
     Provision for loan losses                          1,002          1,000
     Net interest income after provision for
      loan losses                                     122,359        131,202
     Non-interest income:
      Customer service and other loan fees             13,067         11,209
      Loan servicing fees                               3,980          4,538
      Net gain on sales of loans                          333            117
      Net gain on disposition of banking office            --          1,182
      Income from bank owned life insurance             4,182             --
      Other                                             1,150          1,299
     Total non-interest income                         22,712         18,345
     Non-interest expense:
     General and administrative:
      Compensation and benefits                        23,107         22,179
      Occupancy, equipment and systems                 12,981         14,231
      Federal deposit insurance premiums                  497            517
      Advertising                                       1,854          2,046
      Other                                             6,220          7,308
     Total general and administrative                  44,659         46,281
     Net amortization of mortgage servicing rights      3,115          1,422
     Goodwill litigation                                1,021          2,513
     Capital trust securities                           3,104          3,112
     Amortization of goodwill                           4,811          4,824
     Total non-interest expense                        56,710         58,152
 
     Income before income tax expense and cumulative
      effect of accounting change                      88,361         91,395
     Income tax expense                                31,651         35,898
 
     Income before cumulative effect of accounting
      change                                           56,710         55,497
 
     Cumulative effect of accounting change,
      net of tax                                      (2,294)             --
 
     Net income                                        54,416         55,497
 
     Preferred dividends declared                     (1,500)        (1,500)
 
     Net income available to common shareholders      $52,916        $53,997
 
     Basic earnings per common share:
      Income before accounting change                   $1.18          $1.11
 
      Cumulative effect of accounting change,
       net of tax                                       $0.05            $--
 
      Net earnings per common share                     $1.13          $1.11
 
 
     Diluted earnings per common share:
      Income before accounting change                   $1.16          $1.09
 
      Cumulative effect of accounting change,
       net of tax                                       $0.05            $--
 
      Net earnings per common share                     $1.11          $1.09
 
 
 
     Basic weighted average common shares          46,754,681     48,705,240
     Diluted weighted average common and common
      equivalent shares                            47,698,344     49,387,654
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     CONSOLIDATED SCHEDULES OF OPERATING EARNINGS AND OPERATING CASH EARNINGS
     (In Thousands, Except Per Share Data)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Net income                                       $54,416        $55,497
     Add back: Cumulative effect of accounting
      change, net of tax                                2,294             --
     Less: Net gain on disposition of banking
      office, net of tax                                   --            718
     Operating earnings                                56,710         54,779
 
     Preferred dividends declared                     (1,500)        (1,500)
 
     Operating earnings available to common
      shareholders                                    $55,210        $53,279
 
     Basic operating earnings per common share          $1.18          $1.09
     Diluted operating earnings per common share        $1.16          $1.08
 
 
     Operating earnings available to common
      shareholders                                    $55,210        $53,279
     Add back:
       Employee stock plans amortization expense        1,602          1,900
       Amortization of goodwill                         4,811          4,824
 
     Operating cash earnings available to common
      shareholders                                    $61,623        $60,003
 
     Basic operating cash earnings per common share     $1.32          $1.23
     Diluted operating cash earnings per common share   $1.29          $1.21
 
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     SELECTED FINANCIAL RATIOS AND OTHER DATA
 
                                                          At or For the
                                                      Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Selected Returns (annualized)
      Return on average stockholders' equity           13.88%         18.51%
      Return on average tangible stockholders'
       equity                                           15.94          22.71
      Return on average assets                           0.97           0.99
 
     Selected Financial Ratios excluding non-operating
      items, net of tax (annualized)(1)
       Return on average stockholders' equity          14.47%         18.27%
       Cash return on average stockholders' equity (2)  16.10          20.51
       Return on average tangible stockholders' equity  16.62          22.42
       Cash return on average tangible stockholders'
        equity (2)                                      18.49          25.17
       Return on average assets                          1.01           0.97
       Cash return on average assets (2)                 1.13           1.09
       Net interest rate spread                          2.01           2.12
       Net interest margin                               2.30           2.40
       General and administrative expenses to average
        assets                                           0.80           0.82
       Cash general and administrative expenses to
        average assets (3)                               0.77           0.79
       Efficiency ratio                                 30.57          30.99
       Cash efficiency ratio (3)                        29.48          29.71
 
     Asset Quality Data (Dollars in thousands)
      Non-performing loans/total loans                  0.30%          0.45%
      Non-performing loans/total assets                  0.15           0.21
      Non-performing assets/total assets                 0.17           0.23
      Allowance for loan losses/non-performing loans   237.59         163.99
      Allowance for loan losses/non-accrual loans      245.46         170.92
      Allowance for loan losses/total loans              0.70           0.74
      Net charge-offs to average loans outstanding
       (annualized)                                      0.01           0.01
 
      Non-performing assets                           $38,312        $52,884
      Non-performing loans                             33,939         47,181
      Loans 90 days past maturity but still accruing    1,089          1,913
      Non-accrual loans                                32,850         45,268
      Net charge-offs                                     299            205
 
     Capital Ratios (Astoria Federal)
      Tangible                                          6.82%          6.28%
      Core                                               6.82           6.28
      Risk-based                                        16.46          15.86
 
     Other Data
      Cash dividends paid per common share              $0.26          $0.24
      Book value per common share                       31.73          23.46
      Book value per common share - adjusted (4)        32.26          29.71
      Tangible book value per common share              27.64          19.19
      Tangible book value per common share
       - adjusted (4)                                   28.18          25.44
 
     Mortgage loans serviced for others
      (in thousands)                                3,787,261      4,299,257
 
     Average equity/average assets                      7.01%          5.33%
 
     (1)  For the three months ended March 31, 2001, excludes a charge of
          $2.3 million, net of tax, for a cumulative effect of accounting
          change.  For the three months ended March 31, 2000, excludes
          $718,000, net of tax, net gain on the disposition of a banking
          office.
     (2)  Excludes non-cash charge for amortization of goodwill and employee
          stock plans.
     (3)  Excludes non-cash charge for amortization of employee stock plans.
     (4)  Excludes the effect of the net unrealized loss on securities, net of
          tax, of $26.2 million and $320.8 million, respectively.
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     AVERAGE BALANCE SHEET
     (Dollars in Thousands)
 
                                            Three Months Ended March 31,
                                                       2001
                                                                     Average
                                     Average                          Yield/
                                     Balance        Interest          Cost
     Assets:                                                      (Annualized)
     Interest-earning assets:
      Mortgage loans (1)         $11,318,886        $203,191         7.18%
      Consumer and other loans (1)   188,626           4,879         10.35
      Mortgage-backed
       securities (2)              7,848,310         127,716          6.51
      Other securities (2)         1,795,952          32,089          7.15
      Federal funds sold and
       repurchase agreements         343,900           4,678          5.44
     Total interest-earning
       assets                     21,495,674         372,553          6.93
     Non-interest-earning assets     879,997
     Total assets                $22,375,671
 
     Liabilities and stockholders' equity:
      Interest-bearing liabilities:
       Savings                    $2,437,685         $12,161         2.00%
       Certificates of deposit     5,162,621          73,687          5.71
       NOW and money manager       1,002,920           1,393          0.56
       Money market                1,520,725          18,323          4.82
      Total deposits              10,123,951         105,564          4.17
      Borrowed funds              10,153,928         143,628          5.66
      Total interest-bearing
       liabilities                20,277,879         249,192          4.92
      Non-interest-bearing
       liabilities                   529,614
     Total liabilities            20,807,493
     Stockholders' equity          1,568,178
     Total liabilities and
      stockholders' equity       $22,375,671
 
     Net interest income/net
      interest rate spread                          $123,361         2.01%
     Net interest earning assets/
      net interest margin         $1,217,795                         2.30%
     Ratio of interest-earning
      assets to interest-bearing
      liabilities                      1.06x
 
 
                                            Three Months Ended March 31,
                                                     2000
                                                                     Average
                                     Average                          Yield/
                                     Balance        Interest          Cost
     Assets:                                                      (Annualized)
     Interest-earning assets:
      Mortgage loans (1)         $10,260,349        $183,712         7.16%
      Consumer and other loans (1)   173,505           4,294          9.90
      Mortgage-backed
       securities (2)              9,491,191         154,024          6.49
      Other securities (2)         1,849,215          32,390          7.01
      Federal funds sold and
       repurchase agreements         281,900           4,099          5.82
     Total interest-earning
       assets                     22,056,160         378,519          6.86
     Non-interest-earning assets     438,466
     Total assets                $22,494,626
 
     Liabilities and stockholders' equity:
      Interest-bearing liabilities:
       Savings                    $2,573,434         $12,913         2.01%
       Certificates of deposit     4,935,841          66,634          5.40
       NOW and money manager         893,191           1,317          0.59
       Money market                1,215,519          15,234          5.01
      Total deposits               9,617,985          96,098          4.00
      Borrowed funds              11,147,156         150,219          5.39
      Total interest-bearing
       liabilities                20,765,141         246,317          4.74
     Non-interest-bearing
      liabilities                    529,950
     Total liabilities            21,295,091
     Stockholders' equity          1,199,535
     Total liabilities and
      stockholders' equity       $22,494,626
 
     Net interest income/net
      interest rate spread                          $132,202         2.12%
     Net interest earning assets/
      net interest margin         $1,291,019                         2.40%
     Ratio of interest-earning
      assets to interest-bearing
      liabilities                      1.06x
 
     (1)  Mortgage and consumer loans include non-performing loans and exclude
          the allowance for loan losses.
     (2)  Securities available-for-sale are reported at average amortized cost.
 
 

SOURCE Astoria Financial Corporation
    LAKE SUCCESS, N.Y., April 19 /PRNewswire/ --
 Astoria Financial Corporation (Nasdaq:   ASFC) ("Astoria"), the holding company
 for Astoria Federal Savings and Loan Association ("Astoria Federal"), today
 reported operating earnings(1) of $56.7 million, or $1.16 diluted operating
 earnings per common share for the quarter ended March 31, 2001 compared to
 operating earnings of $54.8 million, or $1.08 diluted operating earnings per
 common share for the quarter ended March 31, 2000.
     Operating earnings for the quarter ended March 31, 2001 generated an
 annualized return on average stockholders' equity of 14.47% and a return on
 average assets of 1.01%.
     Including non-operating items detailed in the footnote below, the Company
 reported net income for the quarter ended March 31, 2001 of $54.4 million, or
 $1.11 diluted earnings per common share compared to $55.5 million, or $1.09
 diluted earnings per common share for the quarter ended March 31, 2000.
     Commenting on the Company's results, George L. Engelke, Jr., Chairman,
 President and Chief Executive Officer said, "We are very pleased with the
 solid financial performance achieved in the 2001 first quarter.  We
 accomplished these results by remaining focused on maintaining a very low
 credit risk profile, carefully managing our assets and liabilities and
 operating efficiently."
 
     Operating Cash Earnings and Related Returns
     Operating cash earnings represent the amount by which tangible equity
 changes each period due to operating earnings plus non-cash charges for
 goodwill amortization and amortization relating to certain employee stock
 plans.  Operating cash earnings is a measure of Astoria's financial capacity
 for growth, share repurchases and/or payment of dividends.  Operating cash
 earnings increased tangible equity in the 2001 first quarter by $63.1 million,
 or 11.3% more than operating earnings.  Please see attached table
 "CONSOLIDATED SCHEDULES OF OPERATING EARNINGS AND OPERATING CASH EARNINGS."
     Operating cash earnings available to common shareholders were
 $61.6 million, or $1.29 per diluted operating cash earnings per common share,
 for the 2001 first quarter compared to $60.0 million, or $1.21 diluted
 operating cash earnings per common share, for the 2000 first quarter.  The
 annualized cash returns on average tangible stockholders' equity and average
 assets for the quarter ended March 31, 2001 were 18.49% and 1.13%,
 respectively.
 
     Stock Repurchase Program
     During the first quarter, Astoria, under its seventh stock repurchase
 program, purchased 1.2 million shares of its common stock at an average price
 per share of $53.59.  Since August 2000, the inception of the current program,
 the Company has repurchased 2.5 million shares of the 5 million shares
 authorized under the program.  Additional purchases may be made from time to
 time through August 15, 2002 in open-market or privately negotiated
 transactions.
 
     Board Increases Quarterly Cash Dividend by 19.2%
     The Board of Directors, at their April 18, 2001 meeting, declared a
 quarterly cash dividend of $0.31 per common share, representing a 19.2%
 increase.  The dividend will be payable on June 1, 2001 to shareholders of
 record at the close of business on May 15, 2001.  This is the twenty-fourth
 consecutive quarterly cash dividend declared by the Company.  Commenting on
 the Board's action, Mr. Engelke said, "The action taken by the Board of
 Directors reflects their continued confidence in the fundamental strength of
 the Company and its future prospects."
 
     First Quarter Earnings Summary
     Net interest income for the quarter ended March 31, 2001 totaled
 $123.4 million compared to $132.2 million for the comparable 2000 period and
 $122.3 million for the previous quarter.  The year over year decrease is
 primarily attributable to a decrease in average interest earning assets and a
 lower net interest margin.  Astoria's net interest margin was 2.30% for the
 quarter ended March 31, 2001, down from 2.40% for the 2000 first quarter, but
 up four basis points from the 2000 fourth quarter.
     Non-interest income for the quarter ended March 31, 2001 totaled
 $22.7 million compared to $18.3 million (which includes a gain of $1.2 million
 on the disposition of a banking office) for the 2000 first quarter.  The
 increase in non-interest income was due primarily to the income derived from
 the BOLI program implemented in the 2000 fourth quarter.  Importantly however,
 non-interest income also includes an increase in customer service and other
 loan fees of $1.9 million, or 16.6%, to $13.1 million.  The Company expects
 continued growth in customer service and other loan fees during 2001.
     General and administrative expense ("G&A"), excluding non-cash
 amortization expense relating to certain employee stock plans ("cash G&A"),
 for the quarter ended March 31, 2001, totaled $43.1 million compared to
 $44.4 million for the comparable 2000 period.  Importantly, Astoria's ratio of
 operating cash G&A expense to average assets for the quarter ended March 31,
 2001 was 0.77% compared to 0.79% for the comparable 2000 period.  The
 operating cash efficiency ratio for the quarter ended March 31, 2001 was
 29.48% compared to 29.71% for the comparable 2000 period.  Mr. Engelke
 commented, "Continuing to maintain these important ratios at these extremely
 low levels, which are significantly better than our industry peers,
 contributes to our strong financial performance.  We will continue our strong
 focus on cost control in 2001."
 
     Balance Sheet Summary
     Total assets at March 31, 2001 totaled $22.6 billion compared to
 $22.3 billion at the end of 2000.  Mr. Engelke commented, "We continued to
 reposition our balance sheet through increases in deposits and loans, our core
 businesses, and decreases in securities and borrowings, while limiting growth.
 As shown in the following table, the combined result of the aforementioned
 strategy coupled with positive earnings and a significant reduction in the net
 unrealized loss on securities charged to capital was a continued improvement
 in our book value and tangible book value per common share."
 
    Progress in Repositioning Balance Sheet and Increasing Shareholder Value
                  (Dollars in millions, except per share data)
 
                                                                      % Change
                                                                      3/31/01-
                   3/31/01  12/31/00    9/30/00    6/30/00   3/31/00   3/31/00
 
     Assets       $22,642    $22,337    $22,202   $22,201   $22,590      +0.2%
     Loans        $11,500    $11,424    $11,086   $10,836   $10,545      +9.1%
     MBS           $7,722     $7,875     $8,037    $8,424    $8,895     -13.2%
     Borrowings   $10,150    $10,197    $10,452   $10,621   $11,010      -7.8%
     Deposits     $10,338    $10,072     $9,852    $9,815    $9,781      +5.7%
     Equity        $1,603     $1,513     $1,365    $1,279    $1,254     +27.8%
     Book Value    $31.73    $ 29.47     $26.23    $24.17    $23.46     +35.3%
     Tangible
      Book Value   $27.64    $ 25.35     $22.05    $19.95    $19.19     +44.0%
 
     Mortgage loan originations and purchases for the quarter ended March 31,
 2001 increased 24.2% to $709.0 million from $570.7 million for the quarter
 ended March 31, 2000.  Mortgage loan activity was concentrated primarily in
 one-to-four family residential mortgage loans.  Loan prepayments in the first
 quarter totaled $495.5 million compared to $208.5 million in the 2000 first
 quarter.  "The growth in mortgage loan originations and purchases for the
 first quarter is the direct result of heightened refinance activity.  This
 activity, evidenced also by the increases in loan prepayments, limited the net
 growth in loans for the quarter," Mr. Engelke noted.
     Loans held-for-investment at March 31, 2001 totaled $11.5 billion compared
 to $11.4 billion at December 31, 2000 and $10.5 billion at March 31, 2000.
 While the loan portfolio continued to grow over the past year, non-performing
 loans declined to $33.9 million, or 0.15% of total assets at March 31, 2001,
 from $47.2 million, or 0.21% of total assets at March 31, 2000.  In addition,
 the ratio of the allowance for loan losses to non-performing loans increased
 to 237.6% at March 31, 2001 from 164.0% at March 31, 2000.  Commenting on the
 extremely low level of non-performing assets, Mr. Engelke said, "Our constant
 attention to credit quality in our lending activities is clearly evident in
 our very superior asset quality ratios.  Additionally, because of our
 conservative lending policies and the fact that 94% of our loan portfolio is
 secured by residential real estate, we are well positioned should the economy
 continue to show signs of weakness."
     Mortgage-backed securities decreased $286.1 million primarily due to
 repayments during the quarter ended March 31, 2001, offset by an improvement
 of $133.2 million in unrealized loss on mortgage-backed securities, for a net
 reduction in mortgage-backed securities for the quarter of $152.9 million to
 $7.7 billion, compared to $7.9 billion at December 31, 2000.
     Deposits at March 31, 2001 totaled $10.3 billion, an increase of
 $266.0 million from the previous quarter end, representing an annualized
 growth rate of 10.6%.  Core deposits, which include passbook savings, checking
 and money market accounts, increased $193.3 million from the previous quarter
 to $5.1 billion, or 49.5% of total deposits compared to 48.9% at December 31,
 2000.  Commenting on the deposit growth, Mr. Engelke noted, "We have continued
 to experience very healthy deposit growth as evidenced by the $556.8 million
 increase in deposits over the past twelve months and the impressive
 $897.5 million increase over the past eighteen months.  Importantly, during
 the respective periods, core deposits increased $320.6 million and
 $532.5 million, clearly enhancing the value of our franchise.  It is also
 important to note that our checking account deposits have recently surpassed
 the $1 billion level.  Business checking accounts, which now comprise 8.4% of
 total checking balances, continued to grow during the 2001 first quarter,
 increasing 13.0% from the prior quarter end."
     Borrowings totaled $10.1 billion at March 31, 2001, down slightly from
 December 31, 2000, and declined $860.1 million, or 7.8%, from March 31, 2000.
     Stockholders' equity was $1.6 billion, or 7.08% of total assets at
 March 31, 2001, compared to $1.5 billion, or 6.77% of total assets, at
 December 31, 2000.  The increase in stockholders' equity is attributable to
 the positive effects of net income and a decrease of $94.8 million in the
 unrealized loss on securities available-for-sale, net of taxes, offset by the
 repurchase of common stock and dividends paid.  Astoria Federal continues to
 maintain capital ratios in excess of regulatory requirements.  At March 31,
 2001, core, tangible and risk-based capital ratios were 6.82%, 6.82% and
 16.46%, respectively.
 
     Potential Impact of Changes in Accounting for Business Combinations
     The Financial Accounting Standards Board ("FASB") issued an exposure draft
 on February 14, 2001, "Business Combinations and Intangible Assets" ("the
 Draft") which is a limited revision of a previous exposure draft on the same
 topic issued September 7, 1999.  In the Draft, the FASB indicated that the
 amortization of goodwill created with respect to business combinations
 completed both before and after the effective date of any final pronouncement
 would be discontinued.  Should the Draft be formally implemented, we
 anticipate it to be effective for the third quarter of 2001.  At such time,
 Astoria would cease recording goodwill amortization amounting to approximately
 $19.1 million annually, or approximately $0.40 per diluted common share, based
 on shares currently outstanding.
 
     Future Outlook, Risk Factors and Forward Looking Statement
     This release may contain certain forward-looking statements and may be
 identified by the use of such words as "believe," "expect," "anticipate,"
 "should," "planned," "estimated," and "potential."  Examples of forward
 looking statements include, but are not limited to, estimates with respect to
 the financial condition, results of operations and business of the Company
 that are subject to various factors which could cause actual results to differ
 materially from these estimates.  These factors include, but are not limited
 to, general economic conditions; changes in interest rates, deposit flows,
 loan demand, real estate values, and competition; changes in accounting
 principles, policies, or guidelines; changes in legislation or regulation; and
 other economic, competitive, governmental, regulatory, and technological
 factors affecting the Company's operations, pricing, products, and services.
     Commenting on the current operating environment, Mr. Engelke stated, "With
 a Federal Reserve direction toward easing interest rates, we remain cautiously
 optimistic that the current environment will continue to positively affect the
 net interest margin and net interest income and present us with profitable
 opportunities for growth.  However, the actual amount of interest rate
 decreases as well as the degree of steepening of the U.S. Treasury yield curve
 will be the major determinants of the extent of the positive impact on our net
 interest margin and net interest income.  If, in fact, profitable asset growth
 opportunities remain limited, we will continue to limit growth.  We expect, in
 any event, to continue to repurchase our stock and reposition the balance
 sheet.  The result should be moderate growth in operating earnings per share
 for the year 2001."
 
     Astoria Financial Corporation, the holding company for Astoria Federal
 Savings and Loan Association with assets of $22.6 billion, is the second
 largest thrift institution in New York and sixth largest in the United States.
 Astoria Federal, through its 86 banking offices, provides retail banking,
 mortgage, consumer and small business loan services to 700,000 customers.
 Astoria commands the third 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 originates
 mortgage loans through an extensive broker network and/or loan production
 offices in fourteen states: New York, New Jersey, Connecticut, Pennsylvania,
 Ohio, Massachusetts, Delaware, Maryland, Illinois, Virginia, North Carolina,
 South Carolina, Georgia and Florida.
 
     Note:  Astoria Financial Corporation's news releases are available on its
 website at http://www.astoriafederal.com
 
     (1) For the quarter ended March 31, 2001, operating earnings and related
 returns exclude from net income the cumulative effect of an accounting change,
 net of tax, of $2.3 million, or $0.05 per diluted common share, related to the
 implementation of SFAS No. 133 as previously disclosed.   For the quarter
 ended March 31, 2000, operating earnings and related returns exclude from net
 income the net gain on the disposition of a banking office, net of tax, of
 $718,000, or $0.01 per diluted common share.
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     (In Thousands, Except Share Data)
 
                                                           At             At
                                                    March 31,   December 31,
                                                         2001           2000
     ASSETS
     Cash and due from banks                         $145,095       $135,726
     Federal funds sold and repurchase agreements     729,762        171,525
     Mortgage-backed securities available-for-sale  6,923,790      7,011,185
     Other securities available-for-sale              700,967        692,037
     Mortgage-backed securities held-to-maturity
      (fair value of $807,294 and $866,938,
      respectively)                                   797,989        863,529
     Other securities held-to-maturity (fair
      value of $723,454 and $830,479, respectively)   719,530        848,662
     Federal Home Loan Bank of New York stock         285,250        285,250
     Loans held-for-sale                               22,191         13,545
     Loans receivable:
      Mortgage loans, net                          11,310,286     11,239,141
      Consumer and other loans, net                   189,893        185,308
                                                   11,500,179     11,424,449
      Less allowance for loan losses                   80,634         79,931
      Total loans receivable, net                  11,419,545     11,344,518
     Mortgage servicing rights, net                    38,328         40,962
     Accrued interest receivable                      110,010        109,439
     Premises and equipment, net                      152,837        154,582
     Goodwill                                         199,838        204,649
     Bank owned life insurance                        255,747        251,565
     Other assets                                     140,869        209,628
 
     TOTAL ASSETS                                 $22,641,748    $22,336,802
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Liabilities:
      Deposits                                    $10,337,692    $10,071,687
      Reverse repurchase agreements                 7,785,000      7,785,000
      Federal Home Loan Bank of New York advances   1,864,000      1,910,000
      Other borrowings                                500,729        502,371
      Mortgage escrow funds                           159,679        116,487
      Accrued expenses and other liabilities          266,931        313,094
 
     TOTAL LIABILITIES                             20,914,031     20,698,639
 
     Guaranteed preferred beneficial interest in
      junior subordinated debentures                  125,000        125,000
 
     Stockholders' equity:
      Preferred stock, $1.00 par value; 5,000,000
       shares authorized:
         Series A (325,000 shares authorized and
          0 shares issued and outstanding)                 --             --
         Series B (2,000,000 shares authorized,
           issued and outstanding)                      2,000          2,000
      Common stock, $.01 par value; (200,000,000
       shares authorized; 55,498,296 shares issued;
       and 48,938,303 and 49,643,554 shares
       outstanding, respectively)                         555            555
      Additional paid-in capital                      813,426        807,357
      Retained earnings                             1,093,974      1,059,048
      Treasury stock (6,559,993 and 5,854,742
       shares, at cost, respectively)               (250,249)      (203,632)
      Accumulated other comprehensive income:
       Net unrealized loss on securities, net
        of taxes                                     (26,231)      (121,043)
      Unallocated common stock held by ESOP          (30,758)       (31,122)
 
     TOTAL STOCKHOLDERS' EQUITY                     1,602,717      1,513,163
 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $22,641,748    $22,336,802
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     CONSOLIDATED STATEMENTS OF INCOME
     (In Thousands, Except Share Data)
 
                                                          Three Months Ended
                                                              March 31,
                                                         2001           2000
     Interest income:
      Mortgage loans                                 $203,191       $183,712
      Consumer and other loans                          4,879          4,294
      Mortgage-backed securities                      127,716        154,024
      Other securities                                 32,089         32,390
      Federal funds sold and repurchase agreements      4,678          4,099
     Total interest income                            372,553        378,519
     Interest expense:
      Deposits                                        105,564         96,098
      Borrowed funds                                  143,628        150,219
     Total interest expense                           249,192        246,317
 
     Net interest income                              123,361        132,202
     Provision for loan losses                          1,002          1,000
     Net interest income after provision for
      loan losses                                     122,359        131,202
     Non-interest income:
      Customer service and other loan fees             13,067         11,209
      Loan servicing fees                               3,980          4,538
      Net gain on sales of loans                          333            117
      Net gain on disposition of banking office            --          1,182
      Income from bank owned life insurance             4,182             --
      Other                                             1,150          1,299
     Total non-interest income                         22,712         18,345
     Non-interest expense:
     General and administrative:
      Compensation and benefits                        23,107         22,179
      Occupancy, equipment and systems                 12,981         14,231
      Federal deposit insurance premiums                  497            517
      Advertising                                       1,854          2,046
      Other                                             6,220          7,308
     Total general and administrative                  44,659         46,281
     Net amortization of mortgage servicing rights      3,115          1,422
     Goodwill litigation                                1,021          2,513
     Capital trust securities                           3,104          3,112
     Amortization of goodwill                           4,811          4,824
     Total non-interest expense                        56,710         58,152
 
     Income before income tax expense and cumulative
      effect of accounting change                      88,361         91,395
     Income tax expense                                31,651         35,898
 
     Income before cumulative effect of accounting
      change                                           56,710         55,497
 
     Cumulative effect of accounting change,
      net of tax                                      (2,294)             --
 
     Net income                                        54,416         55,497
 
     Preferred dividends declared                     (1,500)        (1,500)
 
     Net income available to common shareholders      $52,916        $53,997
 
     Basic earnings per common share:
      Income before accounting change                   $1.18          $1.11
 
      Cumulative effect of accounting change,
       net of tax                                       $0.05            $--
 
      Net earnings per common share                     $1.13          $1.11
 
 
     Diluted earnings per common share:
      Income before accounting change                   $1.16          $1.09
 
      Cumulative effect of accounting change,
       net of tax                                       $0.05            $--
 
      Net earnings per common share                     $1.11          $1.09
 
 
 
     Basic weighted average common shares          46,754,681     48,705,240
     Diluted weighted average common and common
      equivalent shares                            47,698,344     49,387,654
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     CONSOLIDATED SCHEDULES OF OPERATING EARNINGS AND OPERATING CASH EARNINGS
     (In Thousands, Except Per Share Data)
 
                                                         Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Net income                                       $54,416        $55,497
     Add back: Cumulative effect of accounting
      change, net of tax                                2,294             --
     Less: Net gain on disposition of banking
      office, net of tax                                   --            718
     Operating earnings                                56,710         54,779
 
     Preferred dividends declared                     (1,500)        (1,500)
 
     Operating earnings available to common
      shareholders                                    $55,210        $53,279
 
     Basic operating earnings per common share          $1.18          $1.09
     Diluted operating earnings per common share        $1.16          $1.08
 
 
     Operating earnings available to common
      shareholders                                    $55,210        $53,279
     Add back:
       Employee stock plans amortization expense        1,602          1,900
       Amortization of goodwill                         4,811          4,824
 
     Operating cash earnings available to common
      shareholders                                    $61,623        $60,003
 
     Basic operating cash earnings per common share     $1.32          $1.23
     Diluted operating cash earnings per common share   $1.29          $1.21
 
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     SELECTED FINANCIAL RATIOS AND OTHER DATA
 
                                                          At or For the
                                                      Three Months Ended
                                                              March 31,
                                                         2001           2000
 
     Selected Returns (annualized)
      Return on average stockholders' equity           13.88%         18.51%
      Return on average tangible stockholders'
       equity                                           15.94          22.71
      Return on average assets                           0.97           0.99
 
     Selected Financial Ratios excluding non-operating
      items, net of tax (annualized)(1)
       Return on average stockholders' equity          14.47%         18.27%
       Cash return on average stockholders' equity (2)  16.10          20.51
       Return on average tangible stockholders' equity  16.62          22.42
       Cash return on average tangible stockholders'
        equity (2)                                      18.49          25.17
       Return on average assets                          1.01           0.97
       Cash return on average assets (2)                 1.13           1.09
       Net interest rate spread                          2.01           2.12
       Net interest margin                               2.30           2.40
       General and administrative expenses to average
        assets                                           0.80           0.82
       Cash general and administrative expenses to
        average assets (3)                               0.77           0.79
       Efficiency ratio                                 30.57          30.99
       Cash efficiency ratio (3)                        29.48          29.71
 
     Asset Quality Data (Dollars in thousands)
      Non-performing loans/total loans                  0.30%          0.45%
      Non-performing loans/total assets                  0.15           0.21
      Non-performing assets/total assets                 0.17           0.23
      Allowance for loan losses/non-performing loans   237.59         163.99
      Allowance for loan losses/non-accrual loans      245.46         170.92
      Allowance for loan losses/total loans              0.70           0.74
      Net charge-offs to average loans outstanding
       (annualized)                                      0.01           0.01
 
      Non-performing assets                           $38,312        $52,884
      Non-performing loans                             33,939         47,181
      Loans 90 days past maturity but still accruing    1,089          1,913
      Non-accrual loans                                32,850         45,268
      Net charge-offs                                     299            205
 
     Capital Ratios (Astoria Federal)
      Tangible                                          6.82%          6.28%
      Core                                               6.82           6.28
      Risk-based                                        16.46          15.86
 
     Other Data
      Cash dividends paid per common share              $0.26          $0.24
      Book value per common share                       31.73          23.46
      Book value per common share - adjusted (4)        32.26          29.71
      Tangible book value per common share              27.64          19.19
      Tangible book value per common share
       - adjusted (4)                                   28.18          25.44
 
     Mortgage loans serviced for others
      (in thousands)                                3,787,261      4,299,257
 
     Average equity/average assets                      7.01%          5.33%
 
     (1)  For the three months ended March 31, 2001, excludes a charge of
          $2.3 million, net of tax, for a cumulative effect of accounting
          change.  For the three months ended March 31, 2000, excludes
          $718,000, net of tax, net gain on the disposition of a banking
          office.
     (2)  Excludes non-cash charge for amortization of goodwill and employee
          stock plans.
     (3)  Excludes non-cash charge for amortization of employee stock plans.
     (4)  Excludes the effect of the net unrealized loss on securities, net of
          tax, of $26.2 million and $320.8 million, respectively.
 
 
     ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
 
     AVERAGE BALANCE SHEET
     (Dollars in Thousands)
 
                                            Three Months Ended March 31,
                                                       2001
                                                                     Average
                                     Average                          Yield/
                                     Balance        Interest          Cost
     Assets:                                                      (Annualized)
     Interest-earning assets:
      Mortgage loans (1)         $11,318,886        $203,191         7.18%
      Consumer and other loans (1)   188,626           4,879         10.35
      Mortgage-backed
       securities (2)              7,848,310         127,716          6.51
      Other securities (2)         1,795,952          32,089          7.15
      Federal funds sold and
       repurchase agreements         343,900           4,678          5.44
     Total interest-earning
       assets                     21,495,674         372,553          6.93
     Non-interest-earning assets     879,997
     Total assets                $22,375,671
 
     Liabilities and stockholders' equity:
      Interest-bearing liabilities:
       Savings                    $2,437,685         $12,161         2.00%
       Certificates of deposit     5,162,621          73,687          5.71
       NOW and money manager       1,002,920           1,393          0.56
       Money market                1,520,725          18,323          4.82
      Total deposits              10,123,951         105,564          4.17
      Borrowed funds              10,153,928         143,628          5.66
      Total interest-bearing
       liabilities                20,277,879         249,192          4.92
      Non-interest-bearing
       liabilities                   529,614
     Total liabilities            20,807,493
     Stockholders' equity          1,568,178
     Total liabilities and
      stockholders' equity       $22,375,671
 
     Net interest income/net
      interest rate spread                          $123,361         2.01%
     Net interest earning assets/
      net interest margin         $1,217,795                         2.30%
     Ratio of interest-earning
      assets to interest-bearing
      liabilities                      1.06x
 
 
                                            Three Months Ended March 31,
                                                     2000
                                                                     Average
                                     Average                          Yield/
                                     Balance        Interest          Cost
     Assets:                                                      (Annualized)
     Interest-earning assets:
      Mortgage loans (1)         $10,260,349        $183,712         7.16%
      Consumer and other loans (1)   173,505           4,294          9.90
      Mortgage-backed
       securities (2)              9,491,191         154,024          6.49
      Other securities (2)         1,849,215          32,390          7.01
      Federal funds sold and
       repurchase agreements         281,900           4,099          5.82
     Total interest-earning
       assets                     22,056,160         378,519          6.86
     Non-interest-earning assets     438,466
     Total assets                $22,494,626
 
     Liabilities and stockholders' equity:
      Interest-bearing liabilities:
       Savings                    $2,573,434         $12,913         2.01%
       Certificates of deposit     4,935,841          66,634          5.40
       NOW and money manager         893,191           1,317          0.59
       Money market                1,215,519          15,234          5.01
      Total deposits               9,617,985          96,098          4.00
      Borrowed funds              11,147,156         150,219          5.39
      Total interest-bearing
       liabilities                20,765,141         246,317          4.74
     Non-interest-bearing
      liabilities                    529,950
     Total liabilities            21,295,091
     Stockholders' equity          1,199,535
     Total liabilities and
      stockholders' equity       $22,494,626
 
     Net interest income/net
      interest rate spread                          $132,202         2.12%
     Net interest earning assets/
      net interest margin         $1,291,019                         2.40%
     Ratio of interest-earning
      assets to interest-bearing
      liabilities                      1.06x
 
     (1)  Mortgage and consumer loans include non-performing loans and exclude
          the allowance for loan losses.
     (2)  Securities available-for-sale are reported at average amortized cost.
 
 SOURCE  Astoria Financial Corporation