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EX-99.1 2 v457506_ex99-1.htm EXHIBIT 99.1
Exhibit 99.1
 

Astoria Financial Corporation Reports 2016 Fourth Quarter and Full Year Earnings Per Common Share of $0.14 and $0.62, Respectively



Quarterly Cash Dividend of $0.04 Per Common Share Declared

LAKE SUCCESS, N.Y., Jan. 25, 2017 /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 $13.7 million, or $0.14 diluted earnings per common share ("diluted EPS"), for the quarter ended December 31, 2016, compared to net income available to common shareholders of $16.2 million, or $0.16 diluted EPS, for the quarter ended December 31, 2015. For the year ended December 31, 2016, net income available to common shareholders totaled $62.8 million, or $0.62 diluted EPS compared to $79.3 million, or $0.79 diluted EPS, for the comparable 2015 period. Included inthe 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 related to New York City.

Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the results stated, "During 2016, we continued our emphasis on growing core deposits which grew by $164.3 million and now represent 82% of total deposits, up from 78% at year end 2015."

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

The Board of Directors of the Company, at its January 25, 2017 meeting, declared a quarterly cash dividend of $0.04 per common share. The dividend is payable on March 1, 2017 to shareholders of record as of February 15, 2017. This is the eighty seventhconsecutive quarterly cash dividend declared by the Company. In addition, the Board established June 7, 2017 as the date for the Annual Meeting of Shareholders, and set April 14, 2017 as the voting record date.

Fourth Quarter and Full Year Earnings Summary

Net interest income for the quarter ended December 31, 2016 totaled $81.6 million compared to $83.6 million for the previous quarter and $84.7 million for the 2015 fourth quarter. The net interest margin for the quarter ended December 31, 2016 was 2.37%, down slightly from 2.39% for both the previous and year ago quarters. For the year ended December 31, 2016, net interest income totaled $331.6 million, compared to $340.3 million for the comparable 2015 period, and the net interest margin was 2.37% for the year ended December 31, 2016, up slightly from 2.36% for the year ended December 31, 2015.

Forthe quarter ended December 31, 2016, a $2.0 million loan loss release was recorded compared to a $1.0 million release in the prior quarter and a $4.3 million loan loss release recorded in the 2015 fourth quarter. For the year ended December 31, 2016, we recorded a loan loss release of $9.2 million compared to a $12.1 million loan loss release for the comparable 2015 period. Mr. Redman stated, "The current quarter's loan loss release reflects the continued contraction in the overall loan portfolio, the positive impact of reductions in the balances of some of our higher risk asset classes and our overall strong credit metrics."

Non-interest income for the quarter ended December 31, 2016 totaled $14.9 million, compared to $12.8 million for the previous quarter and $13.5 million for the 2015 fourth quarter. These increases are primarily due to an increase in mortgagebanking income, net. Non-interest income for the year ended December 31, 2016 totaled $51.0 million compared to $54.6 million for the comparable 2015 period. This decrease is primarily due to decreases in both customer service fees and mortgage banking income, net.

General and administrative ("G&A") expense for the quarter ended December 31, 2016 totaled $71.2 million compared to $68.7 million for the previous quarter and $74.5 million for the 2015 fourth quarter. For the year ended December 31, 2016, G&A expense totaled $279.5 million, down from $289.1 million for the 2015 comparable period. The decrease for the twelve month period ended December 31, 2016 was primarily attributable to decreases in FDIC insurance premiums and advertising expense. Included in the 2016 fourth quarter and full year results are merger related expenses of $1.8 million and $2.7million, respectively, compared to $4.1 million in both the 2015 fourth quarter and full-year results.

Balance Sheet Summary

Total assets at December 31, 2016 were $14.6 billion, a decrease of $517.6 million from December 31, 2015. The decrease was primarily due to a decline in the loan portfolio which decreased $735.9 million from December 31, 2015 and totaled $10.4 billion at December 31, 2016, partially offset by an increase in the securities portfolio of $306.6 million over the same time period.

The MF/CRE mortgage loan portfolio totaled $4.8 billion at December 31, 2016, a decrease of $67.7 million from December 31, 2015 and represents 46% of the total loan portfolio. For the quarter and year ended December 31, 2016, MF/CRE loan originations totaled $97.5 million and $717.7 million, respectively, compared to $300.4 million and $890.7 million, forthe 2015 comparable periods. The MF/CRE loan production for the quarter and year ended December 31, 2016 were originated with weighted average loan-to-value ratios of approximately 34% and 43%, respectively, and weighted average debt coverage ratios of approximately 2.17 and 1.65, respectively. MF/CRE loan prepayments for the quarter and year ended December 31, 2016 totaled $133.0 million and $638.9 million, respectively, compared to $156.8 million and $689.4 million for the comparable 2015 periods. At December 31, 2016, the MF/CRE pipeline totaled approximately $142.7 million.

The residential mortgage loan portfolio totaled $5.4 billion at December 31, 2016 compared to $6.0 billion at December 31, 2015. For the quarter and year ended December 31, 2016, residential loan originations for portfolio totaled $239.7 million and $763.9 million, respectively, compared to $102.9million and $616.9 million for the 2015 comparable periods. The weighted average loan-to-value ratio of the residential loan production for portfolio at origination was approximately 58% and 60%, respectively, for the quarter and year ended December 31, 2016. Residential loan prepayments for the quarter and year ended December 31, 2016 totaled $306.1 million and $1.1 billion, respectively, compared to $243.9 million and $1.2 billion for the comparable 2015 periods. At December 31, 2016, the residential mortgage pipeline totaled approximately $251.4 million.

Total deposits were $8.9 billion at December 31, 2016, a decrease of $229.0 million since year end 2015. Core deposits increased to $7.3 billion at December 31, 2016 from $7.1 billion at December 31, 2015. At December 31, 2016, core deposits represented 82% of total deposits and had a weighted average rate of 12 basispoints. Certificates of deposit decreased by $393.3 million over the same time period and had a weighted average rate of 101 basis points at December 31, 2016.

Stockholders' equity totaled $1.71 billion, or 11.77% of total assets at December 31, 2016, an increase of $50.6 million from December 31, 2015. Astoria's capital levels continue to exceed the minimum levels required to be designated as "well-capitalized" for bank regulatory purposes. At December 31, 2016, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 12.09%, 20.85%, 20.85% and 21.88%, respectively for Astoria Bank, and 10.85%,17.29%, 18.78% and 19.81%, respectively for Astoria Financial Corporation. At December 31, 2016, Astoria Financial Corporation's tangible common equity ratio was 9.73%.

AssetQuality

Non-performing loans ("NPLs"), totaled $148.2 million, or 1.42% of total loans, at December 31, 2016, compared to $138.2 million, or 1.24% of total loans, at December 31, 2015. Included in the NPLs at December 31, 2016 is $40.9 million of loans which are current or less than 90 days past due compared to $54.3 million at December 31, 2015. Total delinquent loans and NPLs at December 31, 2016 were $241.7 million compared to $243.7 million at December 31, 2015. Net recoveries for the quarter ended December 31, 2016 totaled $423,000 compared to net charge-offs of $1.3 million in the previous quarter and $1.2 million in the 2015 fourth quarter. For the year ended December 31, 2016, net charge-offs totaled $2.7 million compared to $1.5 million for the 2015 comparable period. Other real estate owned declined to $15.1 million at December 31, 2016, compared to$19.8 million at December 31, 2015.

About Astoria Financial Corporation

Astoria Financial Corporation, with assets of $14.6 billion, is the holding company for Astoria Bank. Established in 1888, Astoria Bank, with deposits in New York totaling $8.9 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 realestate 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 ofevents that may be subject to circumstances beyond our control; the impact of the termination of the merger agreement with NYCB, including and resulting changes in our operations; 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 those that may be implemented by the new administration in Washington, D.C; supervision and examination by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and theConsumer Financial Protection Bureau; effects of changes in existing U.S. government or government-sponsored mortgage programs; our ability to successfully implement technological changes; our ability to successfully consummate new business initiatives; litigation or other matters before regulatory agencies, whether currently existing or commencing in the future; or our ability to implement enhanced risk management policies, procedures and controls commensurate with shifts in our business strategies and regulatory expectations. We have no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

Tables Follow


ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES











CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION




(In Thousands, Except Share Data)








(Unaudited)







At December 31,


At December 31,





2016


2015

ASSETS





Cash and due from banks

$           129,944


$         200,538

Securities available-for-sale

280,045


416,798

Securities held-to-maturity





(fair value of $2,690,546 and $2,286,092, respectively)

2,740,132


2,296,799

Federal Home Loan Bank of New York stock, at cost

124,807


131,137

Loans held-for-sale, net

11,584


8,960

Loans receivable:





Mortgage loans, net

10,177,295


10,899,776


Consumer and other loans, net

239,892


253,305





10,417,187


11,153,081


Allowance for loan losses

(86,100)


(98,000)

Total loans receivable, net 

10,331,087


11,055,081

Mortgage servicing rights, net

10,130


11,014

Accrued interest receivable

34,994


34,996

Premises and equipment, net

101,021


109,758

Goodwill


185,151


185,151

Bank owned life insurance

441,064


439,646

Real estate owned, net

15,144


19,798

Other assets

153,549


166,535








TOTAL ASSETS

$      14,558,652


$    15,076,211








LIABILITIES




Deposits


$        8,877,055


$      9,106,027

Federal funds purchased


195,000


435,000

Reverse repurchase agreements


1,100,000


1,100,000

Federal Home Loan Bank of New York advances


2,090,000


2,180,000

Other borrowings, net


249,752


249,222

Mortgage escrow funds


112,975


115,435

Accrued expenses and other liabilities


219,797


227,079








TOTAL LIABILITIES

12,844,579


13,412,763








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 101,210,478 and 100,721,358 shares





outstanding, respectively)

1,665


1,665

Additional paid-in capital


830,417


902,349

Retained earnings 


2,155,785


2,045,391

Treasury stock (65,284,410 and 65,773,530 shares, at cost, respectively)

(1,346,709)


(1,357,136)

Accumulated other comprehensive loss


(56,881)


(58,617)








TOTAL STOCKHOLDERS' EQUITY

1,714,073


1,663,448








TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$      14,558,652

$    15,076,211












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,





2016


2015


2016


2015

Interest income:










Residential mortgage loans

$

44,148

$

48,714

$

181,788

$

203,950


Multi-family and commercial real estate mortgage loans


45,703


47,561


186,910


191,643


Consumer and other loans

2,351


2,230


9,614


8,870


Mortgage-backed and other securities

17,789


16,630


69,966


62,754


Interest-earning cash accounts

123


113


469


418


Federal Home Loan Bank of New York stock

1,692


1,391


6,126


5,781

Total interest income


111,806


116,639


454,873


473,416

Interest expense:










Deposits


6,417


8,093


26,899


37,343


Borrowings


23,754


23,862


96,360


95,784

Total interest expense


30,171


31,955


123,259


133,127












Net interest income


81,635


84,684


331,614


340,289

Provision for loan losses credited to operations


(2,023)


(4,323)


(9,151)


(12,072)

Net interest income after provision for loan losses 


83,658


89,007


340,765


352,361

Non-interest income:









Customer service fees

6,957


7,429


28,594


32,833


Other loan fees

564


541


2,231


2,284


Gain on sales of securities 

-


-


86


72


Mortgage banking income, net

2,692


1,687


3,726


4,222


Income from bank owned life insurance

2,263


2,280


9,182


8,878


Other

2,403


1,532


7,143


6,307

Total non-interest income

14,879


13,469


50,962


54,596

Non-interest expense:









General and administrative:










Compensation and benefits


38,134


40,632


150,820


152,924



Occupancy, equipment and systems


19,474


19,201


77,418


76,801



Federal deposit insurance premium


2,480


3,722


12,192


16,421



Advertising


1,282


2,203


6,495


10,052



Other


9,821


8,748


32,545


32,885

Total non-interest expense

71,191


74,506


279,470


289,083











Income before income tax expense

27,346


27,970


112,257


117,874

Income tax expense

11,409


9,539


40,728


29,799












Net income 


15,937


18,431


71,529


88,075












Preferred stock dividends

2,193


2,193


8,775


8,775












Net income available to common shareholders

$

13,744

$

16,238

$

62,754

$

79,300












Basic earnings per common share

$

0.14

$

0.16

$

0.62

$

0.79












Diluted earnings per common share

$

0.14

$

0.16

$

0.62

$

0.79












Basic weighted average common shares outstanding

100,422,113

99,825,387

100,388,802

99,612,473

Diluted weighted average common shares outstanding

100,422,113

100,155,944

100,388,802

99,969,838

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

































AVERAGE BALANCE SHEETS













(Dollars in Thousands)



























































For the Three Months Ended December 31,









2016







2015














Average







Average








Average 




Yield/



Average 




Yield/








Balance


Interest


Cost



Balance


Interest


Cost












(Annualized)







(Annualized)



Assets:


















Interest-earning assets:


















Mortgage loans (1):



















Residential

$

5,476,352

$

44,148


3.22

%

$

6,171,474

$

48,714


3.16

%





Multi-family and commercial real estate 


4,811,183


45,703


3.80



4,770,535


47,561


3.99





Consumer and other loans (1)


244,173


2,351


3.85



253,177


2,230


3.52





Total loans


10,531,708


92,202


3.50



11,195,186


98,505


3.52





Mortgage-backed and other securities (2)


3,009,250


17,789


2.36



2,681,389


16,630


2.48





Interest-earning cash accounts


114,622


123


0.43



167,837


113


0.27





Federal Home Loan Bank stock 


126,319


1,692


5.36



121,211


1,391


4.59




Total interest-earning assets


13,781,899


111,806


3.25



14,165,623


116,639


3.29




Goodwill


185,151







185,151








Other non-interest-earning assets


729,236







753,487







Total assets

$

14,696,286






$

15,104,261


























Liabilities and stockholders' equity:

















Interest-bearing liabilities:


















NOW and demand deposit

$

2,477,701


206


0.03


$

2,316,122


197


0.03





Money market


2,726,977


1,917


0.28



2,546,099


1,697


0.27





Savings


2,059,212


259


0.05



2,134,709


269


0.05





Total core deposits


7,263,890


2,382


0.13



6,996,930


2,163


0.12





Certificates of deposit


1,622,880


4,035


0.99



2,046,763


5,930


1.16





Total deposits


8,886,770


6,417


0.29



9,043,693


8,093


0.36





Borrowings


3,699,757


23,754


2.57



3,962,702


23,862


2.41




Total interest-bearing liabilities


12,586,527


30,171


0.96



13,006,395


31,955


0.98




Non-interest-bearing liabilities


398,612







445,118







Total liabilities 


12,985,139







13,451,513







Stockholders' equity


1,711,147







1,652,748







Total liabilities and stockholders' equity

$

14,696,286






$

15,104,261


























Net interest income/

















net interest rate spread (3)


$

81,635


2.29

%



$

84,684


2.31

%


Net interest-earning assets/
















net interest margin (4)

$

1,195,372




2.37

%

$

1,159,228




2.39

%


Ratio of interest-earning assets to

















interest-bearing liabilities


1.09x







1.09x































































(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,









2016







2015














Average







Average








Average 




Yield/



Average 




Yield/








Balance


Interest


Cost



Balance


Interest


Cost






















Assets:


















Interest-earning assets:


















Mortgage loans (1):



















Residential

$

5,699,839

$

181,788


3.19

%

$

6,481,319

$

203,950


3.15

%





Multi-family and commercial real estate 


4,872,076


186,910


3.84



4,800,044


191,643


3.99





Consumer and other loans (1)


251,328


9,614


3.83



251,181


8,870


3.53





Total loans


10,823,243


378,312


3.50



11,532,544


404,463


3.51





Mortgage-backed and other securities (2)


2,912,329


69,966


2.40



2,586,882


62,754


2.43





Interest-earning cash accounts


123,871


469


0.38



148,359


418


0.28





Federal Home Loan Bank stock 


130,763


6,126


4.68



134,434


5,781


4.30




Total interest-earning assets


13,990,206


454,873


3.25



14,402,219


473,416


3.29




Goodwill


185,151







185,151








Other non-interest-earning assets


748,362







732,611







Total assets

$

14,923,719






$

15,319,981


























Liabilities and stockholders' equity:

















Interest-bearing liabilities:


















NOW and demand deposit

$

2,446,009


808


0.03


$

2,270,980


778


0.03





Money market


2,667,905


7,398


0.28



2,459,170


6,496


0.26





Savings


2,099,651


1,052


0.05



2,186,704


1,093


0.05





Total core deposits


7,213,565


9,258


0.13



6,916,854


8,367


0.12





Certificates of deposit


1,736,168


17,641


1.02



2,282,038


28,976


1.27





Total deposits


8,949,733


26,899


0.30



9,198,892


37,343


0.41





Borrowings


3,872,958


96,360


2.49



4,081,488


95,784


2.35




Total interest-bearing liabilities


12,822,691


123,259


0.96



13,280,380


133,127


1.00




Non-interest-bearing liabilities


408,533







417,480







Total liabilities 


13,231,224







13,697,860







Stockholders' equity


1,692,495







1,622,121







Total liabilities and stockholders' equity

$

14,923,719






$

15,319,981


























Net interest income/

















net interest rate spread (3)



$

331,614


2.29

%



$

340,289


2.29

%


Net interest-earning assets/

















net interest margin (4)

$

1,167,515




2.37

%

$

1,121,839




2.36

%


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





























SELECTED FINANCIAL RATIOS AND OTHER DATA



















For the



At or For the








Three Months Ended



Twelve Months Ended








December 31, 



December 31, 








2016


2015



2016


2015



Selected Returns and Financial Ratios


(Annualized)











Return on average common stockholders' equity (1)


3.48

%


4.26

%



4.02

%


5.31

%




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


3.94



4.85




4.56



6.07





Return on average assets (1)


0.43



0.49




0.48



0.57





General and administrative expense to average assets


1.94



1.97




1.87



1.89





Efficiency ratio (3)



73.76



75.91




73.05



73.21





Net interest rate spread



2.29



2.31




2.29



2.29





Net interest margin



2.37



2.39




2.37



2.36























Selected Non-GAAP Returns and Financial Ratios (4) 

















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


3.48

%


4.26

%



4.02

%


4.55

%




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


3.94



4.85




4.56



5.19





Non-GAAP return on average assets (1)


0.43



0.49




0.48



0.50























Asset Quality Data (dollars in thousands) 

















Non-performing loans:



















Current









$

34,671


$

43,870






30-59 days delinquent










4,630



8,222






60-89 days delinquent










1,603



2,170






90 days or more delinquent










107,332



83,954





Non-performing loans










148,236



138,216
























Real estate owned










15,144



19,798
























Non-performing assets









$

163,380


$

158,014
























Net loan (recoveries) charge-offs


$

(423)


$

1,177



$

2,749


$

1,528
























Non-performing loans/total loans










1.42

%


1.24

%




Non-performing loans/total assets









1.02



0.92





Non-performing assets/total assets










1.12



1.05





Allowance for loan losses/non-performing loans










58.08



70.90





Allowance for loan losses/total loans










0.83



0.88





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



(0.02)

%


0.04

%



0.03



0.01























Regulatory Capital Ratios


















Astoria Bank:



















Tier 1 leverage









12.09

%


11.29

%





Common equity tier 1 risk-based









20.85



19.12






Tier 1 risk-based









20.85



19.12






Total risk-based









21.88



20.25





Astoria Financial Corporation:



















Tier 1 leverage









10.85

%


10.21






Common equity tier 1 risk-based









17.29



16.00






Tier 1 risk-based









18.78



17.37






Total risk-based









19.81



18.51























Other Data 


















Cash dividends paid per common share


$

0.04


$

0.04



$

0.16


$

0.16





Book value per common share 










15.65



15.23





Tangible book value per common share










13.82



13.39





Tangible common stockholders' equity/tangible assets (2) (5)










9.73

%


9.06

%




Mortgage loans serviced for others (in thousands)









$

1,346,647


$

1,404,480





Full time equivalent employees









1,377



1,551
























(1)

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



(2)

Tangible common stockholders' equity represents common stockholders' equity lessgoodwill. 



(3)

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



(4)

See the "Reconciliation of GAAP Measures to Non-GAAP Measures" table included in this release for a reconciliation of GAAPmeasures to non-GAAP measures for the twelve months ended December 31, 2015.  There were no non-GAAP adjustments to the selected ratios for the 2016 periods.



(5)

Tangible assets represent assets less goodwill.

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES























END OF PERIOD BALANCES AND RATES











(Dollars in Thousands)
















































At December 31, 2016



At September 30, 2016



At December 31, 2015






Weighted




Weighted




Weighted





Average




Average




Average



  Balance


Rate (1)


  Balance


Rate (1)


  Balance


Rate (1)

Selected interest-earning assets:
















Mortgage loans, gross (2):
















Residential

$

5,263,800


3.43

%

$

5,403,477


3.40

%

$

5,941,914


3.33

%

Multi-family and commercial real estate


4,766,164


3.58



4,839,325


3.60



4,832,847


3.67


Mortgage-backed and other securities (3)


3,020,177


2.61



3,059,406


2.62



2,713,597


2.74


















Interest-bearing liabilities:
















NOW and demand deposit


2,521,094


0.03



2,478,959


0.03



2,413,823


0.03


Money market


2,706,895


0.26



2,719,547


0.27



2,560,204


0.26


Savings


2,048,202


0.05



2,079,553


0.05



2,137,818


0.05


Total core deposits


7,276,191


0.12



7,278,059


0.13



7,111,845


0.12


Certificates of deposit


1,600,864


1.01



1,649,585


0.98



1,994,182


1.16


Total deposits


8,877,055


0.28



8,927,644


0.29



9,106,027


0.35


Borrowings, net 


3,634,752


2.56



3,814,620


2.45



3,964,222


2.40


















































(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.