Astoria Financial Corporation Reports 2015 Fourth Quarter And Full Year Earnings Per Common Share Of $0.16 And $0.79, Respectively Quarterly Cash Dividend of $0.04 Per Common Share Declared

LAKE SUCCESS, N.Y., Jan. 27, 2016 /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 $16.2 million, or $0.16 diluted earnings per common share ("diluted EPS"), for the quarter ended December 31, 2015, compared to $21.1 million, or $0.21 diluted EPS, for the quarter ended December 31, 2014. Included in the 2014 fourth quarter results is $4.2 million ($0.04 per common share) of tax benefits recognized primarily related to the resolution of a tax matter with New York State and the related impact of changes in New York State tax legislation which was signed into law on March 31, 2014 and became effective January 1, 2015. For the year ended December 31, 2015, net income available to common shareholders totaled $79.3 million, or $0.79 diluted EPS compared to $87.1 million, or $0.88 diluted EPS, for 2014.  Included in the 2015 full year results is a reduction in income tax expense of $11.4 million ($0.12 per common share) related to the impact of income tax legislation enacted in the second quarter of 2015, primarily applicable to New York City.  Included in the 2014 full year results was a reduction in income tax expense of $11.5 million ($0.12 per common share) related to the impact of the previously discussed New York State income tax legislation as well as the previously discussed $4.2 million of tax benefits.

Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the 2015 results stated, "While we are disappointed by the lack of net growth in our loan portfolio, we are pleased with the continued growth that we have seen in core deposits and business deposits, as well as the further expansion we have experienced in our net interest margin."

"For the full year 2015, core deposits grew by approximately $302 million, $163 million of that growth coming in the fourth quarter, and now represent 78% of total deposits, up from 72% at year end 2014.  Contributing to this improvement was the growth that we experienced in business deposits, growing by approximately $35 million in the fourth quarter and approximately $120 million, or 13% for the year.  At December 31, 2015, business deposits totaled $1.05 billion."

"In addition, we continue to be encouraged with the expansion of our net interest margin in a less than ideal interest rate environment. In the fourth quarter of 2015 our margin was up 2 basis points to 2.39% from 2.37% in the prior quarter and up 4 basis points for the year to 2.36% from 2.32% in 2014." 

Board Declares Quarterly Cash Dividend of $0.04 Per Share
The Board of Directors of the Company, at its January 27, 2016 meeting, declared a quarterly cash dividend of $0.04 per common share.  The dividend is payable on March 1, 2016 to shareholders of record as of February 12, 2016.  This is the eighty-third consecutive quarterly cash dividend declared by the Company.

Fourth Quarter and Full Year Earnings Summary
Net interest income for the quarter ended December 31, 2015 totaled $84.7 million unchanged from the previous quarter and up from $83.9 million for the 2014 fourth quarter.  The net interest margin for the quarter ended December 31, 2015 was 2.39%, compared to 2.37% for the previous quarter and 2.30% for the 2014 fourth quarter. For the year ended December 31, 2015, net interest income totaled $340.3 million, compared to $342.3 million for 2014, and the net interest margin was 2.36% for the year ended December 31, 2015, up from 2.32% for the year ended December 31, 2014.

For the quarter ended December 31, 2015, a $4.3 million loan loss release was recorded compared to a $4.4 million release in the prior quarter and a $2.3 million release in the 2014 fourth quarter. For the year ended December 31, 2015, we recorded a loan loss release of $12.1 million compared to a $9.5 million loan loss release for 2014.  Mr. Redman stated, "The loan loss release recorded in the fourth quarter is a reflection of our overall strong credit metrics and the continued contraction in the overall portfolio."

Non-interest income for the quarter ended December 31, 2015 totaled $13.5 million, compared to $12.9 million for the previous quarter and $13.6 million for the 2014 fourth quarter. The increase from the prior quarter was primarily due to an increase in mortgage banking income, net and more specifically, a recovery of MSR valuation in the most recent period compared to a provision for MSR valuation in the previous quarter. Non-interest income for the year ended December 31, 2015 totaled $54.6 million compared to $54.8 million for 2014. 

General and administrative ("G&A") expense for the quarter ended December 31, 2015 totaled $74.5 million compared to $72.6 million for the previous quarter and $70.2 million for the 2014 fourth quarter.  For the year ended December 31, 2015, G&A expense totaled $289.1 million, up from $284.4 million for the 2014 comparable period. Mr. Redman commented, "Our G&A in the fourth quarter was impacted by approximately $4 million of merger related expenses."    

Balance Sheet Summary
Total assets at December 31, 2015 were $15.1 billion, a decrease of $563.8 million from December 31, 2014. The decrease was primarily due to a decline in the loan portfolio which decreased $804.4 million from December 31, 2014, and totaled $11.2 billion at December 31, 2015, partially offset by an increase in the securities portfolio of $195.4 million over the same period. 

The MF/CRE mortgage loan portfolio totaled $4.8 billion at December 31, 2015, an increase of $56.8 million from December 31, 2014 and represents 44% of the total loan portfolio.  For the quarter and year ended December 31, 2015, MF/CRE loan originations totaled $300.4 million and $890.7 million, respectively, compared to $388.0 million and $1.2 billion, for the 2014 comparable periods. The MF/CRE loan production for the 2015 fourth quarter and year ended December 31, 2015 were originated with weighted average loan-to-value ratios of approximately 38% and 45%, respectively, and weighted average debt coverage ratios of approximately 1.42 and 1.49, respectively. MF/CRE loan prepayments for the quarter and year ended December 31, 2015 totaled $156.8 million and $689.4 million, respectively, compared to $105.9 million and $375.7 million for the comparable 2014 periods. The pipeline at December 31, 2015 was $392.5 million.

The residential mortgage loan portfolio totaled $6.0 billion at December 31, 2015, compared to $6.9 billion at December 31, 2014.  For the quarter and year ended December 31, 2015, residential loan originations for portfolio totaled $102.9 million and $616.9 million, respectively, compared to $129.1 million and $455.9 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% and 61% for the quarter and year ended December 31, 2015, respectively.  Residential loan prepayments for the quarter and year ended December 31, 2015 totaled $243.9 million and $1.2 billion, respectively, compared to $265.1 million and $1.1 billion for the comparable 2014 periods. At December 31, 2015, the residential mortgage pipeline totaled approximately $161.3 million.

Deposits totaled $9.1 billion at December 31, 2015, a decrease of $398.9 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. At December 31, 2015, core deposits totaled $7.1 billion with a weighted average rate of 12 basis points, and represent 78% of total deposits.    

Stockholders' equity totaled $1.66 billion, or 11.03% of total assets at December 31, 2015, an increase of $83.4 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 December 31, 2015, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 11.29%, 19.12%, 19.12% and 20.25%, respectively for Astoria Bank, and 10.21%, 16.00%, 17.37% and 18.51%, respectively for Astoria Financial Corporation.  At December 31, 2015, Astoria Financial Corporation's tangible common equity ratio was 9.06%.

Asset Quality
Non-performing loans ("NPLs"), totaled $138.2 million, or 1.24% of total loans, at December 31, 2015, compared to $127.8 million, or 1.07% of total loans, at December 31, 2014. Included in the NPLs at December 31, 2015 is $54.3 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 December 31, 2015 were $243.7 million compared to $227.7 million at December 31, 2014. Net charge-offs for the quarter ended December 31, 2015 totaled $1.2 million compared to net recoveries of $439,000 in the previous quarter and net recoveries of $316,000 in the 2014 fourth quarter.  Net charge-offs for the year ended December 31, 2015 totaled $1.5 million compared to net charge-offs of $17.9 million for the 2014 full year. Other real estate owned declined to $19.8 million at December 31, 2015, compared to $35.7 million at December 31, 2014.

Future Outlook 
Commenting on the Company's future outlook, Mr. Redman stated, "As was previously announced on October 29, 2015, we entered into a definitive agreement to merge with New York Community Bancorp ("NYCB"). We are very pleased that we are planning to merge with such a strong partner and, once the deal is closed, look forward to working with NYCB to continue to serve the communities which have come to rely on us for the past 127 years."

About Astoria Financial Corporation
Astoria Financial Corporation, with assets of $15.1 billion, is the holding company for Astoria Bank.  Established in 1888, Astoria Bank, with deposits in New York totaling $9.1 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 88 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.   

This communication contains certain forward-looking information about NYCB, Astoria, and the combined company after the close of the transaction that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995.  All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of NYCB, Astoria and the combined company.  Forward-looking statements speak only as of the date they are made and we assume no duty to update such statements. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.  In addition to factors previously disclosed in reports filed by NYCB and Astoria with the SEC, risks and uncertainties for each institution and the combined institution include, but are not limited to: lower than expected revenues; credit quality deterioration or a reduction in real estate values could cause an increase in the allowance for credit losses and a reduction in net earnings; 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; increases in competitive pressure among financial institutions or from non-financial institutions; effects of changes in existing U.S. government or government-sponsored mortgage programs; the ability to complete the proposed transaction, including obtaining regulatory approvals and approval by the stockholders of Astoria or NYCB, or any future transaction, successfully integrate NYCB's and Astoria's integration plan, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected time-frames or at all; regulatory approvals may not be received on expected timeframes or at all; the possibility that personnel changes will not proceed as planned; the possibility that the cost of additional capital may be more than expected; the possibility that a change in the interest rate environment may reduce net interest margins; asset/liability re-pricing risks and liquidity risks; pending legal matters may take longer or cost more to resolve or may be resolved adversely; general economic conditions, either nationally or in the market areas in which the entities operate or anticipate doing business, are less favorable than expected; and environmental conditions, including natural disasters, may disrupt business, impede operations, or negatively affect the values of collateral securing loans.

Additional Information About the Proposed Transaction and Where to Find It

This communication is being made in respect of the proposed merger transaction involving NYCB and Astoria. NYCB has filed a registration statement on Form S-4 with the SEC, which will include a joint proxy statement of Astoria and NYCB and a prospectus of NYCB, and each party will file other documents regarding the proposed transaction with the SEC.  A definitive joint proxy statement/prospectus will also be sent to the Astoria and NYCB stockholders seeking any required stockholder approvals.  Before making any voting or investment decision, investors and security holders of Astoria and NYCB are urged to carefully read the entire registration statement and joint proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction.  The documents filed by NYCB and Astoria with the SEC may be obtained free of charge at the SEC's website at www.sec.gov.  In addition, the documents filed by NYCB may be obtained free of charge at NYCB's website at http://ir.mynycb.com/ and the documents filed by Astoria may be obtained free of charge at Astoria's website at http://ir.astoriabank.com/.  Alternatively, these documents, when available, can be obtained free of charge from NYCB upon written request to New York Community Bancorp, Inc., Attn: Corporate Secretary, 615 Merrick Avenue, Westbury, New York 11590 or by calling (516) 683-4100 or from Astoria upon written request to Astoria Financial Corporation, Attn: Investor Relations, One Astoria Bank Plaza, Lake Success, New York 11042 or by calling (516) 327-3000.

NYCB, Astoria, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from NYCB's and Astoria's stockholders in favor of the approval of the merger.  Information about the directors and executive officers of NYCB and their ownership of NYCB common stock is set forth in the proxy statement for NYCB's 2015 annual meeting of stockholders, as previously filed with the SEC on April 24, 2015.  Information about the directors and executive officers of Astoria and their ownership of Astoria common stock is set forth in the proxy statement for Astoria's 2015 annual meeting of stockholders, as previously filed with the SEC on April 17, 2015.  Stockholders may obtain additional information regarding the interests of such participants by reading the registration statement and the proxy statement/prospectus when they become available.

Tables Follow

 

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES







CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION



(In Thousands, Except Share Data)





(Unaudited)




At December 31,


At December 31,


2015


2014

ASSETS




Cash and due from banks

$           200,538


$          143,185

Securities available-for-sale

416,798


384,359

Securities held-to-maturity





(fair value of $2,286,092 and $2,131,371, respectively)

2,296,799


2,133,804

Federal Home Loan Bank of New York stock, at cost

131,137


140,754

Loans held-for-sale, net

8,960


7,640

Loans receivable:





Mortgage loans, net

10,899,776


11,707,785


Consumer and other loans, net

253,305


249,663



11,153,081


11,957,448


Allowance for loan losses

(98,000)


(111,600)

Total loans receivable, net

11,055,081


11,845,848

Mortgage servicing rights, net

11,014


11,401

Accrued interest receivable

34,996


36,628

Premises and equipment, net

109,758


111,622

Goodwill

185,151


185,151

Bank owned life insurance

439,646


430,768

Real estate owned, net

19,798


35,723

Other assets

166,535


173,138





TOTAL ASSETS

$      15,076,211


$     15,640,021





LIABILITIES




Deposits

$        9,106,027


$       9,504,909

Federal funds purchased

435,000


455,000

Reverse repurchase agreements

1,100,000


1,100,000

Federal Home Loan Bank of New York advances

2,180,000


2,384,000

Other borrowings, net

249,222


248,691

Mortgage escrow funds

115,435


115,400

Accrued expenses and other liabilities

227,079


251,951








TOTAL LIABILITIES

13,412,763


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 100,721,358 and 99,940,399 shares





outstanding, respectively)



1,665


1,665

Additional paid-in capital



902,349


897,049

Retained earnings



2,045,391


1,992,833

Treasury stock (65,773,530 and 66,554,489 shares, at cost, respectively)

(1,357,136)


(1,375,322)

Accumulated other comprehensive loss



(58,617)


(65,951)








TOTAL STOCKHOLDERS' EQUITY

1,663,448


1,580,070








TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$      15,076,211


$     15,640,021















 

 















ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES



















CONSOLIDATED STATEMENTS OF INCOME  (Unaudited)









(In Thousands, Except Share Data)


























For the Three Months Ended



For the Twelve Months Ended





December 31,



December 31,





2015


2014



2015


2014

Interest income:











Residential mortgage loans

$

48,714

$

55,901


$

203,950

$

241,417


Multi-family and commercial real estate mortgage loans


47,561


46,365



191,643


178,795


Consumer and other loans


2,230


2,204



8,870


8,532


Mortgage-backed and other securities


16,630


14,744



62,754


57,065


Interest-earning cash accounts


113


89



418


321


Federal Home Loan Bank of New York stock


1,391


1,443



5,781


6,220

Total interest income


116,639


120,746



473,416


492,350

Interest expense:











Deposits


8,093


12,499



37,343


51,355


Borrowings


23,862


24,323



95,784


98,707

Total interest expense


31,955


36,822



133,127


150,062













Net interest income


84,684


83,924



340,289


342,288

Provision for loan losses credited to operations


(4,323)


(2,316)



(12,072)


(9,469)

Net interest income after provision for loan losses


89,007


86,240



352,361


351,757

Non-interest income:











Customer service fees


7,429


8,477



32,833


35,710


Other loan fees


541


647



2,284


2,493


Gain on sales of securities


-


-



72


141


Mortgage banking income, net


1,687


664



4,222


3,326


Income from bank owned life insurance


2,280


2,198



8,878


8,476


Other


1,532


1,595



6,307


4,702

Total non-interest income


13,469


13,581



54,596


54,848

Non-interest expense:











General and administrative:












Compensation and benefits


40,632


36,183



152,924


138,177



Occupancy, equipment and systems


19,201


17,933



76,801


71,948



Federal deposit insurance premium


3,722


3,775



16,421


26,179



Advertising


2,203


3,277



10,052


12,450



Other


8,748


9,075



32,885


35,656

Total non-interest expense


74,506


70,243



289,083


284,410













Income before income tax expense


27,970


29,578



117,874


122,195

Income tax expense


9,539


6,319



29,799


26,279













Net income


18,431


23,259



88,075


95,916













Preferred stock dividends


2,193


2,193



8,775


8,775













Net income available to common shareholders

$

16,238

$

21,066


$

79,300

$

87,141

























Basic earnings per common share

$

0.16

$

0.21


$

0.79

$

0.88

























Diluted earnings per common share

$

0.16

$

0.21


$

0.79

$

0.88













Basic weighted average common shares outstanding

99,825,387

98,695,344


99,612,473

98,384,443

Diluted weighted average common shares outstanding

100,155,944

98,695,344


99,969,838

98,384,443













 

 
























ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES






























AVERAGE BALANCE SHEETS













(Dollars in Thousands)



























































For the Three Months Ended December 31,









2015







2014














Average







Average








Average




Yield/



Average




Yield/








Balance


Interest


Cost



Balance


Interest


Cost












(Annualized)







(Annualized)



Assets:

















Interest-earning assets:


















Mortgage loans (1):



















Residential

$

6,171,474

$

48,714


3.16

%

$

7,025,076

$

55,901


3.18

%





Multi-family and commercial real estate


4,770,535


47,561


3.99



4,656,150


46,365


3.98





Consumer and other loans (1)


253,177


2,230


3.52



247,896


2,204


3.56





Total loans


11,195,186


98,505


3.52



11,929,122


104,470


3.50





Mortgage-backed and other securities (2)


2,681,389


16,630


2.48



2,400,023


14,744


2.46





Interest-earning cash accounts


167,837


113


0.27



121,297


89


0.29





Federal Home Loan Bank stock


121,211


1,391


4.59



131,276


1,443


4.40




Total interest-earning assets


14,165,623


116,639


3.29



14,581,718


120,746


3.31




Goodwill


185,151







185,151








Other non-interest-earning assets


753,487







693,567







Total assets

$

15,104,261






$

15,460,436


























Liabilities and stockholders' equity:

















Interest-bearing liabilities:


















NOW and demand deposit

$

2,316,122


197


0.03


$

2,172,157


184


0.03





Money market


2,546,099


1,697


0.27



2,346,770


1,632


0.28





Savings


2,134,709


269


0.05



2,253,841


284


0.05





Total core deposits


6,996,930


2,163


0.12



6,772,768


2,100


0.12





Certificates of deposit


2,046,763


5,930


1.16



2,782,441


10,399


1.49





Total deposits


9,043,693


8,093


0.36



9,555,209


12,499


0.52





Borrowings


3,962,702


23,862


2.41



3,944,452


24,323


2.47




Total interest-bearing liabilities


13,006,395


31,955


0.98



13,499,661


36,822


1.09




Non-interest-bearing liabilities


445,118







366,078







Total liabilities


13,451,513







13,865,739







Stockholders' equity


1,652,748







1,594,697







Total liabilities and stockholders' equity

$

15,104,261






$

15,460,436


























Net interest income/

















net interest rate spread (3)



$

84,684


2.31

%



$

83,924


2.22

%


Net interest-earning assets/

















net interest margin (4)

$

1,159,228




2.39

%

$

1,082,057




2.30

%


Ratio of interest-earning assets to

















interest-bearing liabilities


1.09x







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 Twelve Months Ended December 31,









2015







2014














Average







Average








Average




Yield/



Average




Yield/








Balance


Interest


Cost



Balance


Interest


Cost






















Assets:


















Interest-earning assets:


















Mortgage loans (1):



















Residential

$

6,481,319

$

203,950


3.15

%

$

7,509,317

$

241,417


3.21

%





Multi-family and commercial real estate


4,800,044


191,643


3.99



4,401,493


178,795


4.06





Consumer and other loans (1)


251,181


8,870


3.53



241,556


8,532


3.53





Total loans


11,532,544


404,463


3.51



12,152,366


428,744


3.53





Mortgage-backed and other securities (2)


2,586,882


62,754


2.43



2,342,486


57,065


2.44





Interest-earning cash accounts


148,359


418


0.28



107,977


321


0.30





Federal Home Loan Bank stock


134,434


5,781


4.30



142,782


6,220


4.36




Total interest-earning assets


14,402,219


473,416


3.29



14,745,611


492,350


3.34




Goodwill


185,151







185,151








Other non-interest-earning assets


732,611







682,583







Total assets

$

15,319,981






$

15,613,345


























Liabilities and stockholders' equity:

















Interest-bearing liabilities:


















NOW and demand deposit

$

2,270,980


778


0.03


$

2,134,277


706


0.03





Money market


2,459,170


6,496


0.26



2,187,718


5,527


0.25





Savings


2,186,704


1,093


0.05



2,364,679


1,182


0.05





Total core deposits


6,916,854


8,367


0.12



6,686,674


7,415


0.11





Certificates of deposit


2,282,038


28,976


1.27



2,959,631


43,940


1.48





Total deposits


9,198,892


37,343


0.41



9,646,305


51,355


0.53





Borrowings


4,081,488


95,784


2.35



4,058,192


98,707


2.43




Total interest-bearing liabilities


13,280,380


133,127


1.00



13,704,497


150,062


1.09




Non-interest-bearing liabilities


417,480







341,246







Total liabilities


13,697,860







14,045,743







Stockholders' equity


1,622,121







1,567,602







Total liabilities and stockholders' equity

$

15,319,981






$

15,613,345


























Net interest income/

















net interest rate spread (3)



$

340,289


2.29

%



$

342,288


2.25

%


Net interest-earning assets/

















net interest margin (4)

$

1,121,839




2.36

%

$

1,041,114




2.32

%


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





























SELECTED FINANCIAL RATIOS AND OTHER DATA



















For the



At or For the






Three Months Ended



Twelve Months Ended






December 31,



December 31,






2015


2014



2015


2014

Selected Returns and Financial Ratios


(Annualized)









Return on average common stockholders' equity (1)


4.26

%


5.75

%



5.31

%


6.06

%


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


4.85



6.58




6.07



6.96



Return on average assets (1)



0.49



0.60




0.57



0.61



General and administrative expense to average assets


1.97



1.82




1.89



1.82



Efficiency ratio (3)



75.91



72.04




73.21



71.62



Net interest rate spread



2.31



2.22




2.29



2.25



Net interest margin



2.39



2.30




2.36



2.32



















Selected Non-GAAP Returns and Financial Ratios (4)















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


4.26

%


4.60

%



4.55

%


4.97

%


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


4.85



5.26




5.19



5.70



Non-GAAP return on average assets (1)



0.49



0.49




0.50



0.51



















Asset Quality Data (dollars in thousands)
















Non-performing loans:

















Current









$

43,870


$

57,088




30-59 days delinquent










8,222



5,429




60-89 days delinquent










2,170



2,461




90 days or more delinquent










83,954



62,834



Non-performing loans










138,216



127,812




















Real estate owned










19,798



35,723




















Non-performing assets









$

158,014


$

163,535




















Net loan charge-offs (recoveries)


$

1,177


$

(316)



$

1,528


$

17,931




















Non-performing loans/total loans










1.24

%


1.07

%


Non-performing loans/total assets










0.92



0.82



Non-performing assets/total assets










1.05



1.05



Allowance for loan losses/non-performing loans










70.90



87.32



Allowance for loan losses/total loans










0.88



0.93



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


0.04

%


(0.01)

%



0.01



0.15



















Regulatory Capital Ratios (5)
















Astoria Bank:

















Tier 1 leverage









11.29

%


10.62

%



Common equity tier 1 risk-based









19.12



N/A




Tier 1 risk-based









19.12



17.55




Total risk-based









20.25



18.76



Astoria Financial Corporation:
















Tier 1 leverage









10.21

%


N/A




Common equity tier 1 risk-based









16.00



N/A




Tier 1 risk-based









17.37



N/A




Total risk-based









18.51



N/A



















Other Data
















Cash dividends paid per common share

$

0.04


$

0.04



$

0.16


$

0.16



Book value per common share









15.23



14.51



Tangible book value per common share









13.39



12.66



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









9.06

%


8.19

%


Mortgage loans serviced for others (in thousands)








$

1,404,480


$

1,452,645



Full time equivalent employees








1,551



1,594





































(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 and twelve months ended December 31, 2015 and 2014.

(5)

The regulatory capital ratios presented as of December 31, 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 December 31, 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 December 31, 2015


At September 30, 2015


At December 31, 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

$

5,941,914


3.33

%

$

6,165,489


3.32

%

$

6,828,547


3.35

%

Multi-family and commercial real estate


4,832,847


3.67



4,722,761


3.69



4,765,201


3.79


Mortgage-backed and other securities (3)


2,713,597


2.74



2,645,087


2.72



2,518,163


2.80


















Interest-bearing liabilities:
















NOW and demand deposit


2,413,823


0.03



2,273,670


0.03



2,198,777


0.04


Money market


2,560,204


0.26



2,523,575


0.26



2,373,484


0.24


Savings


2,137,818


0.05



2,151,262


0.05



2,237,142


0.05


Total core deposits


7,111,845


0.12



6,948,507


0.12



6,809,403


0.11


Certificates of deposit


1,994,182


1.16



2,099,954


1.15



2,695,506


1.47


Total deposits


9,106,027


0.35



9,048,461


0.36



9,504,909


0.50


Borrowings, net


3,964,222


2.40



4,006,089


2.34



4,187,691


2.26


















































(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.