ASTORIA FINANCIAL CORP 
By LAKE SUCCESS, N.Y., Jan. 29, 2014 /PRNewswire/ -- Astoria Financial Corporation (NYSE: AF) ("Astoria", the "Company"), the holding company for Astoria Federal Savings and Loan Association ("Astoria Federal"), today reported net income available to common shareholders of $18.0 million, or $0.18 diluted earnings per common share ("diluted EPS"), for the quarter ended December 31, 2013, compared to net income available to common shareholders of $16.9 million, or $0.17 diluted EPS, for the quarter ended December 31, 2012. For the year ended December 31, 2013, net income available to common shareholders totaled $59.4 million, or $0.60 diluted EPS, compared to $53.1 million, or $0.55 diluted EPS, for the year ended December 31, 2012.
Included in the 2013 full year results is a $4.3 million prepayment charge ($2.8 million, or $0.03 per common share, after tax) for the early extinguishment of debt during the 2013 second quarter in connection with the redemption of $125 million of capital securities. Included in the 2012 fourth quarter is a $6.0 million ($3.9 million, or $0.04 per common share, after tax) gain resulting from the sale of the Company's entire holdings of Freddie Mac preferred stock and a $2.2 million ($1.4 million, or $0.02 per common share, after tax) charge related to the settlement of employment agreements associated with executive retirements in the 2012 first quarter. Also included in the 2012 full year results are net charges totaling $3.4 million ($2.2 million, or $0.02 per common share, after-tax), representing severance related expenses associated with cost control initiatives implemented in the 2012 first quarter, and a $1.2 million ($785,000, or $0.01 per common share, after tax) charge related to the early extinguishment of debt in the 2012 third quarter.
Financial Highlights
Loan Portfolio Shift Continues:
-- Multifamily/commercial real estate ("MF/CRE") mortgage loan originations
totaled $1.6 billion for the year ended December 31, 2013.
-- MF/CRE loans continue to become a larger percentage of the loan
portfolio, increasing to 33% of total loans at December 31, 2013 from
24% at December 31, 2012.
-- At December 31, 2013, the MF/CRE pipeline totaled approximately $312
million.
Deposits:
-- Business deposits increased 32% from December 31, 2012 to $650.1 million
at December 31, 2013.
-- Core deposits increased to 67% of deposits at December 31, 2013, up from
62% at December 31, 2012.
Net Interest Margin:
-- For the year ended December 31, 2013, the net interest margin increased
to 2.25% from 2.16% for the 2012 comparable period.
Operating Expense Improvement:
-- Year over year decline in operating expenses achieved in part through
cost control initiatives implemented in 2012 resulting in lower
compensation and benefits expense, primarily pension related, coupled
with lower FDIC insurance premium expense and other expense.
Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the 2013 fourth quarter stated, "We are pleased with the results that we have reported today which we believe demonstrate that our plan to strategically reposition our balance sheet continues to gain traction. On the asset side of the balance sheet, our MF/CRE loan portfolio continued to grow and now represents 33% of our loan portfolio, well on its way towards our target of 45% by the end of 2015. Likewise, on the liability side, our continued focus on growing business banking continues to pay dividends by providing us with low cost business deposits, which have grown 32% during the year ended December 31, 2013."
Board Declares Quarterly Cash Dividend of $0.04 Per Share; Sets Annual Shareholder Meeting Date
The Board of Directors of the Company, at its January 29, 2014 meeting, declared a quarterly cash dividend of $0.04 per common share. The dividend is payable on March 1, 2014 to shareholders of record as of February 14, 2014. This is the seventy-fifth consecutive quarterly cash dividend declared by the Company. In addition, the Board established May 21, 2014 as the date for the Annual Meeting of Shareholders, and set March 27, 2014 as the voting record date. In addition, as stated earlier today in a press release, the Company announced that Jane D. Carlin has been appointed to serve as a director of both the Company and Astoria Federal effective January 29, 2014.
Fourth Quarter and Full Year Earnings Summary
Net interest income for the quarter ended December 31, 2013 totaled $86.8 million compared to $86.2 million for the previous quarter and $87.4 million for the 2012 fourth quarter. The net interest margin for the quarter ended December 31, 2013 increased to 2.31% from 2.28% for the previous quarter and 2.21% for the 2012 fourth quarter. For the year ended December 31, 2013, net interest income totaled $341.9 million, compared to $348.3 million for the year ended December 31, 2012, and the net interest margin increased to 2.25% for the full year 2013 from 2.16% for the full year 2012.
For the quarter ended December 31, 2013, a $3.4 million provision for loan losses was recorded compared to $2.5 million for the previous quarter and $10.9 million for the 2012 fourth quarter. For the year ended December 31, 2013, the provision for loan losses totaled $19.6 million compared to $40.4 million for the year ended December 31, 2012. "The level of provision is a continued reflection of the improvement in our asset quality metrics, as well as the contraction of the overall loan portfolio. The allowance for loan losses coverage ratio to the total loan portfolio remains strong at 1.12%," Mr. Redman commented.
Non-interest income for the quarter ended December 31, 2013 totaled $17.4 million compared to $21.6 million for the 2012 fourth quarter. This decrease is due primarily to a decrease in gain on sales of securities, partially offset by an increase in mortgage banking income, net, including a partial recovery of the MSR valuation allowance of $2.3 million. For the year ended December 31, 2013, non-interest income totaled $69.6 million compared to $73.2 million for the year ended December 31, 2012. This decrease is primarily due to decreases in gain on sales of securities, customer service fees, and income from bank owned life insurance, partially offset by an increase in mortgage banking income, net, including a partial recovery of the MSR valuation allowance totaling $5.4 million.
General and administrative ("G&A") expense for the quarter ended December 31, 2013 totaled $69.0 million compared to $72.5 million for the previous quarter and $73.2 million for the 2012 fourth quarter. The decrease from the previous quarter is primarily due to decreases in advertising expense and other expense. The decrease from the 2012 fourth quarter is due to the decline in FDIC insurance premium expense and decreases in advertising expense and other expense. For the year ended December 31, 2013, G&A expense decreased $12.6 million, or 4%, to $287.5 million from $300.1 million for the year ended December 31, 2012. This decrease is primarily due to decreases in FDIC insurance premium expense, compensation and benefits expense, and other expense which were partially offset by increases in occupancy, equipment and systems expense and extinguishment of debt expense.
Balance Sheet Summary
Total assets decreased $228.4 million and $702.9 million, from September 30, 2013 and December 31, 2012, respectively, and totaled $15.8 billion at December 31, 2013. The declines were primarily due to decreases in the residential mortgage loan portfolio, partially offset by an increase in the securities portfolio since December 31, 2012. The loan portfolio decreased $99.5 million and $781.9 million from September 30, 2013 and December 31, 2012, respectively, and totaled $12.4 billion at December 31, 2013.
The residential (one-to-four family) mortgage loan portfolio totaled $8.0 billion at December 31, 2013, compared to $8.3 billion at September 30, 2013 and $9.7 billion at December 31, 2012. For the quarter and year ended December 31, 2013, residential loan originations for portfolio totaled $158.2 million and $996.0 million, respectively, compared to $220.4 million and $2.5 billion, respectively, for the comparable 2012 periods. The weighted average loan-to-value ratios of the residential loan production for portfolio were approximately 72% and 66% at origination for the quarter and year ended December 31, 2013, respectively, and the loan amounts averaged approximately $582,000 and $694,000, respectively. Residential loan prepayments for the quarter and year ended December 31, 2013 totaled $323.2 million and $2.3 billion, respectively, compared to $633.7 million and $2.9 billion, respectively, for the comparable 2012 periods. "During the fourth quarter, as longer-term interest rates moved higher, we experienced a more dramatic slowdown in residential loan prepayments, the early signs of which we had begun to see in the 2013 third quarter. In addition we experienced a decrease in residential mortgage originations as the market shifted away from a refinance market towards more of a purchase market," Mr. Redman commented.
The MF/CRE mortgage loan portfolio increased $168.6 million, or 4%, from September 30, 2013 and $928.8 million, or 29%, from December 31, 2012 to $4.1 billion at December 31, 2013, and represents 33% of the total loan portfolio. For the quarter and year ended December 31, 2013, MF/CRE loan originations totaled $325.2 million and $1.6 billion, respectively, compared to $383.4 million and $1.6 billion, respectively, for the 2012 comparable periods. The 2013 quarter and year ended December 31, 2013 MF/CRE loan production was originated with weighted average loan-to-value ratios of approximately 29% and 43%, respectively, weighted average debt coverage ratios of approximately 1.68% and 1.74%, respectively, and loan balances averaging approximately $2.5 million and $2.6 million, respectively. MF/CRE loan prepayments for the quarter and year ended December 31, 2013 totaled $125.1 million and $495.4 million, respectively, compared to $150.6 million and $694.8 million for the comparable 2012 periods. At December 31, 2013, the MF/CRE pipeline totaled approximately $312 million. Mr. Redman stated, "Similar to what we saw in the residential mortgage loan portfolio, as longer-term rates moved higher, deal activity appears to have slowed down which has led to a decrease in our pipeline from where it stood earlier in 2013."
Deposits decreased $205.1 million and $588.6 million from September 30, 2013 and December 31, 2012, respectively, to $9.9 billion at December 31, 2013. The year-to-date decreases were primarily due to decreases in higher cost certificates of deposit ("CDs"), partially offset by a net increase in lower cost core deposits. Core deposits totaled $6.6 billion, or 67% of total deposits, and had a weighted average rate of 11 basis points at December 31, 2013, compared to 62% of total deposits at December 31, 2012. CDs, which totaled $3.3 billion at December 31, 2013, or 33% of total deposits, declined 17% from December 31, 2012.
Borrowings totaled $4.1 billion at December 31, 2013, a decrease of $236.3 million from December 31, 2012. The decrease in borrowings, coupled with the growth in business banking deposits and decrease in CDs, is a further reflection of our continuing efforts to reposition the mix of liabilities.
Stockholders' equity totaled $1.5 billion, or 9.62% of total assets, at December 31, 2013, an increase of $225.5 million from December 31, 2012, primarily the result of the issuance of preferred stock in the 2013 first quarter, undistributed net income and other comprehensive income. Astoria Federal continues to be designated as well-capitalized with Tier 1 leverage, Tangible, Total risk-based and Tier 1 risk-based capital ratios of 9.93%, 9.93%, 17.05% and 15.79%, respectively, at December 31, 2013.
Asset Quality
Non-performing loans ("NPLs"), including troubled debt restructurings ("TDRs") of $109.8 million, totaled $332.0 million, or 2.10% of total assets, at December 31, 2013, compared to $315.1 million, including TDRs of $32.8 million, or 1.91% of total assets, at December 31, 2012. Included in the $332.0 million of non-performing loans at December 31, 2013 are $81.5 million of loans which are current or less than 90 days past due compared to $13.7 million at December 31, 2012.
Residential NPLs totaled $305.6 million, of which $234.4 million are 90 days or more delinquent, at December 31, 2013, compared to $291.1 million, of which $280.7 million are 90 days or more delinquent, at December 31, 2012. Of the $234.4 million of residential NPLs delinquent 90 or more days, $202.7 million, or 86%, represent loans which, at 180 days delinquent and annually thereafter were reviewed, and charged-off as needed, to the estimated fair value of the underlying collateral at such time, less estimated selling costs. MF/CRE NPLs totaled $20.4 million and consumer and other NPLs totaled $6.0 million at December 31, 2013 compared to $17.5 million and $6.5 million, respectively, at December 31, 2012. Real estate owned, net totaled $42.6 million at December 31, 2013 compared to $28.5 million at December 31, 2012.
The following table illustrates a two-year migration trend for loan delinquencies and NPLs:
Delinquent Loans NPLs NPLs Total
30-89 Days Less Than 90 90 Days or
More Total NPLs Delinquent
(in millions) Past Due Days Past Due Past Due Loans and
NPLs
--- ----
At December 31, 2011 $215.5 $10.9 $322.0 $332.9 $548.4
At December 31, 2012 $181.9 $13.7 $301.4 $315.1 $497.0
At December 31, 2013(1) $131.9 $81.5 $250.5 $332.0 $463.9
(1) Non-performing loans at December 31, 2013 include $61.0 million of loans which have been discharged in a Chapter 7 bankruptcy filing which are
less than 90 days past due, of which $54.5 million are current. Such loans are reflected as non-performing pursuant to regulatory guidance issued
in 2012.
The table below details, as of December 31, 2013, the ten largest concentrations by state of residential mortgage loans and the respective non-performing loan totals in those states.
($ in millions) Total Residential % of Total Total NPLs as %
State Loans Residential Residential of State Total
Loans NPLs
--- --- ---- ---
New York* $2,373.2 29.6% $54.6 2.30%
Connecticut* $828.7 10.3% $36.2 4.37%
Illinois* $741.1 9.2% $35.5 4.79%
Massachusetts* $679.6 8.5% $13.4 1.97%
New Jersey* $570.9 7.1% $57.0 9.98%
Virginia $559.4 7.0% $15.0 2.68%
Maryland* $498.0 6.2% $35.6 7.15%
California $477.1 5.9% $23.4 4.90%
Washington $227.9 2.8% $2.6 1.14%
Texas $204.7 2.5% $0.0 0.00%
------ --- ----
Top 10 States $7,160.6 89.1% $273.3 3.82%
All other states
(1,2) $876.7 10.9% $32.3 3.68%
------ ---- -----
Total
Residential
Loans $8,037.3 100.0% $305.6 (3) 3.80%
======== ===== =========
* Judicial foreclosure required
(1) Includes 25 states and Washington, D.C.
(2) Includes Florida with $142.8 million total loans, of which $12.4 million are non-performing loans.
(3) Includes $71.2 million of loans which are current or less than 90 days past due.
Selected Asset Quality Metrics
(at December 31, 2013 except as noted)
-------------------------------------
($ in millions) Multi- CRE Consumer Total
Residential Family & Other
----------- ------ -------
Loan portfolio balance $8,037.3 $3,296.5 $813.0 $239.7(1) $12,442.1 (2)(6)
Non-performing loans $305.6 (3)(4) $12.5 $7.9 $6.0 $332.0 (5)
NPLs/total loans 2.46% 0.10% 0.06% 0.05% 2.67%
Net charge-offs 4Q13 $5.0 $1.1 $1.4 $(0.1) $7.4
Net charge-offs YTD $18.3 $3.5 $3.2 $1.1 $26.1
(1) Includes $199.8 million of home equity loans.
(2) Includes $55.7 million of net unamortized premiums and deferred loan costs.
(3) Includes $71.2 million of loans which are current or less than 90 days past due.
(4) Includes $202.7 million of NPLs reviewed, and charged-off as needed, at 180 days delinquent and annually thereafter.
(5) Includes $81.5 million of loans which are current or less than 90 days past due.
(6) Does not foot due to rounding.
Included in the $5.0 million of residential loan net charge-offs in the 2013 fourth quarter are $3.3 million of charge-offs on $18.4 million of NPLs which, at 180 days delinquent and annually thereafter, were reviewed in the 2013 fourth quarter and charged-off, as needed, to the estimated fair value of the underlying collateral less estimated selling costs. "Although we continued to see increased levels of loans shifting from NPL status to real estate owned during the quarter, we expect the level of NPLs 90 days or more delinquent will remain somewhat elevated for some time, especially in those states requiring judicial foreclosure. It is important to note that the loss potential remaining on these NPLs has been greatly reduced as a result of our having already reviewed, marked down, and charged-off as necessary, 86% of the residential NPLs 90 days or more delinquent, to their adjusted fair value less estimated selling costs," Mr. Redman noted.
Future Outlook
Commenting on the future outlook, Mr. Redman stated, "It is clear to us that our strategy to become a full service community bank is taking hold. As we move forward we will continue to execute this strategy to further diversify the balance sheet and improve our net interest margin. Business banking will remain a focus and we expect to open our first full-service branch in Manhattan by the end of the first quarter. In addition, we plan to open two more full-service branches in the second half of the year in prime locations within our market from which to better serve our business banking clients. We anticipate that our net interest margin in 2014 will be higher than the 2.25% margin we achieved in 2013. We believe we will experience a growth in earning assets in 2014 as the contraction we have witnessed over the past several years in the residential portfolio continues to slow down and the growth in our MF/CRE portfolio starts to outpace the shrinkage."
Earnings Conference Call January 30, 2014 at 10:00 a.m. (ET)
The Company, as previously announced, indicated that Monte N. Redman, President & CEO will host an earnings conference call Thursday morning, January 30, 2014 at 10:00 a.m. (ET). The toll-free dial-in number is (877) 709-8150. A telephone replay will be available on January 30, 2014 from 1:00 p.m. (ET) through midnight Saturday, February 8, 2014 (ET). The replay number is (877) 660-6853, ID# 421313. The conference call will also be simultaneously webcast on the Company's website www.astoriafederal.com and archived for one year.
About Astoria Financial Corporation
Astoria Financial Corporation, with assets of $15.8 billion, is the holding company for Astoria Federal Savings and Loan Association. Established in 1888, Astoria Federal, with deposits in New York totaling $9.9 billion, is the second largest thrift depository in New York and embraces its philosophy of "Putting people first" by providing the customers and local communities it serves with quality financial products and services through 85 convenient banking branch locations, one business banking office, and multiple delivery channels, including its enhanced website, www.astoriafederal.com. Astoria Federal commands a significant deposit market share in the attractive Long Island market, which includes Brooklyn, Queens, Nassau, and Suffolk counties with a population exceeding that of 38 individual states. Astoria Federal originates residential mortgage loans through its banking and loan production offices in New York, a broker network in four states, primarily along the East Coast, and correspondent relationships covering nine states and the District of Columbia and multi-family and commercial real estate loans, primarily on rent controlled and rent stabilized apartment buildings, located in New York City and the surrounding metropolitan area.
Forward Looking Statements
This press release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would," and similar terms and phrases, including references to assumptions.
Forward-looking statements are based on various assumptions and analyses made by us in light of our management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond our control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins or affect the value of our investments; changes in deposit flows, loan demand or real estate values may adversely affect our business; changes in accounting principles, policies or guidelines may cause our financial condition to be perceived differently; general economic conditions, either nationally or locally in some or all areas in which we do business, or conditions in the real estate or securities markets or the banking industry may be less favorable than we currently anticipate; legislative or regulatory changes, including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and any actions regarding foreclosures, may adversely affect our business; enhanced supervision and examination by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; effects of changes in existing U.S. government or government-sponsored mortgage programs; technological changes may be more difficult or expensive than we anticipate; success or consummation of new business initiatives may be more difficult or expensive than we anticipate; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may be determined adverse to us or may delay the occurrence or non-occurrence of events longer than we anticipate. We have no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
Tables Follow
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
----------------------------------------------
(In Thousands, Except Share Data)
At At
December 31, December 31,
2013 2012
ASSETS
------
Cash and due from banks $121,950 $121,473
Securities available-for-sale 401,690 336,300
Securities held-to-maturity
(fair value of
$1,811,122 and
$1,725,090,
respectively) 1,849,526 1,700,141
Federal Home Loan Bank of New York stock,
at cost 152,207 171,194
Loans held-for-sale, net 7,375 76,306
Loans receivable:
Mortgage loans,
net 12,201,920 12,958,999
Consumer and
other loans,
net 240,146 264,973
-------
12,442,066 13,223,972
Allowance for
loan losses (139,000) (145,501)
-------- --------
Total loans receivable, net 12,303,066 13,078,471
Mortgage servicing rights, net 12,800 6,947
Accrued interest receivable 37,926 41,688
Premises and equipment, net 112,530 115,632
Goodwill 185,151 185,151
Bank owned life insurance 423,375 418,155
Real estate owned, net 42,636 28,523
Other assets 143,490 216,661
TOTAL ASSETS $15,793,722 $16,496,642
LIABILITIES
-----------
Deposits $9,855,310 $10,443,958
Federal funds purchased 335,000 -
Reverse repurchase agreements 1,100,000 1,100,000
Federal Home Loan Bank of New York
advances 2,454,000 2,897,000
Other borrowings, net 248,161 376,496
Mortgage escrow funds 109,458 113,101
Accrued expenses and other liabilities 172,280 272,098
TOTAL LIABILITIES 14,274,209 15,202,653
STOCKHOLDERS' EQUITY
--------------------
Preferred stock, $1.00 par value;
5,000,000 shares authorized:
Series C (150,000
shares authorized;
and 135,000 and
-0-shares issued
and outstanding, respectively) 129,796 -
Common stock, $0.01 par value
(200,000,000 shares authorized;
166,494,888
shares issued;
and 98,841,960
and 98,419,318
shares
outstanding,
respectively) 1,665 1,665
Additional paid-in capital 894,297 884,689
Retained earnings 1,930,026 1,891,022
Treasury stock (67,652,928 and 68,075,570
shares, at cost, respectively) (1,398,021) (1,406,755)
Accumulated other comprehensive loss (38,250) (73,090)
Unallocated common stock held by ESOP
(-0-and 967,013
shares,
respectively) - (3,542)
TOTAL STOCKHOLDERS' EQUITY 1,519,513 1,293,989
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,793,722 $16,496,642
========= =========
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------
(In Thousands,
Except Share
Data)
For the Three For the Twelve
Months Ended Months Ended
December 31, December 31,
------------ ------------
2013 2012 2013 2012
Interest income:
Residential
mortgage
loans $66,796 $86,242 $289,790 $372,478
Multi-family
and
commercial
real estate
mortgage
loans 42,889 38,606 163,352 149,694
Consumer and
other loans 2,186 2,314 8,797 9,258
Mortgage-
backed and
other
securities 13,560 12,312 49,563 61,757
Repurchase
agreements
and interest-
earning cash
accounts 71 56 263 338
Federal Home
Loan Bank of
New York
stock 1,518 2,056 6,665 6,984
Total interest
income 127,020 141,586 518,430 600,509
Interest expense:
Deposits 14,451 19,542 62,617 98,021
Borrowings 25,804 34,638 113,911 154,219
Total interest
expense 40,255 54,180 176,528 252,240
Net interest
income 86,765 87,406 341,902 348,269
Provision for
loan losses 3,408 10,900 19,601 40,400
Net interest
income after
provision for
loan losses 83,357 76,506 322,301 307,869
Non-interest
income:
Customer
service fees 9,068 9,040 36,786 39,520
Other loan
fees 642 703 2,230 2,640
Gain on sales
of securities - 6,000 2,057 8,477
Mortgage
banking
income, net 3,181 1,673 13,241 6,820
Income from
bank owned
life
insurance 2,193 2,366 8,404 9,439
Other 2,319 1,861 6,854 6,339
Total non-
interest income 17,403 21,643 69,572 73,235
Non-interest
expense:
General and
administrative:
Compensation and
benefits 34,427 34,080 133,689 139,140
Occupancy,
equipment and
systems 17,042 17,414 70,711 67,406
Federal deposit
insurance
premium 8,829 11,763 37,188 47,363
Advertising 175 768 6,400 6,392
Extinguishment of
debt - - 4,266 1,212
Other 8,576 9,165 35,277 38,620
----- ------
Total non-
interest expense 69,049 73,190 287,531 300,133
------
Income before
income tax
expense 31,711 24,959 104,342 80,971
Income tax
expense 11,559 8,043 37,749 27,880
------ ----- ------ ------
Net income 20,152 16,916 66,593 53,091
Preferred stock
dividends 2,193 - 7,214 -
----- --- ----- ---
Net income
available to
common
shareholders $17,959 $16,916 $59,379 $53,091
Basic earnings
per common
share $0.18 $0.17 $0.60 $0.55
Diluted
earnings per
common share $0.18 $0.17 $0.60 $0.55
Basic weighted
average common
shares
outstanding 97,579,796 95,907,718 97,121,497 95,455,344
Diluted
weighted
average common
shares
outstanding 97,579,796 95,907,718 97,121,497 95,455,344
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Three Months Ended December 31,
2013 2012
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annualized) (Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
Residential $8,226,614 $66,796 3.25% $10,091,712 $86,242 3.42%
Multi-family and commercial real estate 4,041,959 42,889 4.24 3,058,470 38,606 5.05
Consumer and other loans (1) 243,375 2,186 3.59 268,109 2,314 3.45
------- ----- ------- -----
Total loans 12,511,948 111,871 3.58 13,418,291 127,162 3.79
Mortgage-backed and other securities
(2) 2,274,668 13,560 2.38 2,106,362 12,312 2.34
Interest-earning cash accounts 103,503 71 0.27 90,548 56 0.25
Federal Home Loan Bank stock 153,101 1,518 3.97 179,397 2,056 4.58
------- ----- ------- -----
Total interest-earning assets 15,043,220 127,020 3.38 15,794,598 141,586 3.59
------- -------
Goodwill 185,151 185,151
Other non-interest-earning
assets 691,767 768,114
------- -------
Total assets $15,920,138 $16,747,863
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,522,999 318 0.05 $2,798,866 353 0.05
Money market 1,937,387 1,237 0.26 1,497,279 2,702 0.72
NOW and demand deposit 2,091,156 173 0.03 2,010,158 164 0.03
--------- --- --------- ---
Total core deposits 6,551,542 1,728 0.11 6,306,303 3,219 0.20
Certificates of deposit 3,364,659 12,723 1.51 4,126,333 16,323 1.58
--------- ------ --------- ------
Total deposits 9,916,201 14,451 0.58 10,432,636 19,542 0.75
Borrowings 4,119,999 25,804 2.51 4,622,347 34,638 3.00
--------- ------ --------- ------
Total interest-bearing
liabilities 14,036,200 40,255 1.15 15,054,983 54,180 1.44
------ ------
Non-interest-bearing liabilities 406,268 394,591
------- -------
Total liabilities 14,442,468 15,449,574
Stockholders' equity 1,477,670 1,298,289
--------- ---------
Total liabilities and
stockholders' equity $15,920,138 $16,747,863
Net interest income/
net interest rate spread (3) $86,765 2.23% $87,406 2.15%
======= ==== ======= ====
Net interest-earning assets/
net interest margin (4) $1,007,020 2.31% $739,615 2.21%
Ratio of interest-earning
assets to
interest-bearing liabilities 1.07x 1.05x
===== =====
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at XhtmlFactory.XhtmlTableToTextConverter.GetTableRepresentation(Int32 intCallingMethod, List`1 arrMetaData, String strConstructedTableData, Int32 intTotalColumns, Int32[,] arrMergeInfo)
at XhtmlFactory.XhtmlTableToTextConverter.GenerateAsciiTable(List`1 arrTableDetails)
at XhtmlFactory.XhtmlTableToTextConverter.GetDownConvertedText(String strInputHtml, String strWidths, Dictionary`2 dictReplacementCharsInTable)
at PrimaryContent.GenerateASCIIContent()
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Twelve Months Ended December 31,
2013 2012
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
Residential $8,810,950 $289,790 3.29% $10,464,169 $372,478 3.56%
Multi-family and commercial real estate 3,680,551 163,352 4.44 2,739,095 149,694 5.47
Consumer and other loans (1) 253,465 8,797 3.47 273,907 9,258 3.38
------- ----- ------- -----
Total loans 12,744,966 461,939 3.62 13,477,171 531,430 3.94
Mortgage-backed and other
securities (2) 2,211,700 49,563 2.24 2,312,270 61,757 2.67
Repurchase agreements and
interest-earning cash accounts 95,892 263 0.27 142,745 338 0.24
Federal Home Loan Bank stock 154,478 6,665 4.31 164,707 6,984 4.24
------- ----- ------- -----
Total interest-earning assets 15,207,036 518,430 3.41 16,096,893 600,509 3.73
------- -------
Goodwill 185,151 185,151
Other non-interest-earning
assets 748,080 824,481
------- -------
Total assets $16,140,267 $17,106,525
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
Savings $2,659,433 1,329 0.05 $2,818,440 4,437 0.16
Money market 1,824,729 5,646 0.31 1,318,943 8,944 0.68
NOW and demand deposit 2,094,245 691 0.03 1,933,156 978 0.05
--------- --- --------- ---
Total core deposits 6,578,407 7,666 0.12 6,070,539 14,359 0.24
Certificates of deposit 3,598,297 54,951 1.53 4,702,693 83,662 1.78
--------- ------ --------- ------
Total deposits 10,176,704 62,617 0.62 10,773,232 98,021 0.91
Borrowings 4,115,259 113,911 2.77 4,624,841 154,219 3.33
--------- ------- --------- -------
Total interest-bearing
liabilities 14,291,963 176,528 1.24 15,398,073 252,240 1.64
------- -------
Non-interest-bearing
liabilities 428,920 430,466
------- -------
Total liabilities 14,720,883 15,828,539
Stockholders' equity 1,419,384 1,277,986
--------- ---------
Total liabilities and
stockholders' equity $16,140,267 $17,106,525
Net interest income/
net interest rate spread (3) $341,902 2.17% $348,269 2.09%
====== ==== ====== ====
Net interest-earning assets/
net interest margin (4) $915,073 2.25% $698,820 2.16%
Ratio of interest-earning assets
to
interest-bearing liabilities 1.06x 1.05x
===== =====
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at XhtmlFactory.XhtmlTableToTextConverter.GetTableRepresentation(Int32 intCallingMethod, List`1 arrMetaData, String strConstructedTableData, Int32 intTotalColumns, Int32[,] arrMergeInfo)
at XhtmlFactory.XhtmlTableToTextConverter.GenerateAsciiTable(List`1 arrTableDetails)
at XhtmlFactory.XhtmlTableToTextConverter.GetDownConvertedText(String strInputHtml, String strWidths, Dictionary`2 dictReplacementCharsInTable)
at PrimaryContent.GenerateASCIIContent()
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
----------------------------------------
For the At or For the
Three Months
Ended Twelve Months Ended
December 31, December 31,
------------
2013 2012 2013 2012
---- ---- ---- ----
Selected Returns and Financial Ratios (Annualized)
-------------------------------------
Return on average common
stockholders' equity (1) 5.33% 5.21% 4.50% 4.15%
Return on average tangible common
stockholders' equity (1) (2) 6.18 6.08 5.23 4.86
Return on average assets (1) 0.51 0.40 0.41 0.31
General and administrative
expense to average assets 1.73 1.75 1.78 1.75
Efficiency ratio (3) 66.29 67.12 69.88 71.21
Net interest rate spread 2.23 2.15 2.17 2.09
Net interest margin 2.31 2.21 2.25 2.16
Asset Quality Data (dollars in thousands)
----------------------------------------
Non-performing loans (4):
Current $70,644 $11,139
30-59 days delinquent 8,228 1,850
60-89 days delinquent 2,596 690
90 days or more
delinquent 250,534 301,407
Non-performing loans 332,002 315,086
Real estate owned 42,636 28,523
Non-performing assets 374,638 343,609
Net loan charge-offs $7,408 $13,871 26,102 52,084
Non-performing loans/total loans 2.67% 2.38%
Non-performing loans/total assets 2.10 1.91
Non-performing assets/total
assets 2.37 2.08
Allowance for loan losses/non-
performing loans 41.87 46.18
Allowance for loan losses/total
loans 1.12 1.10
Net loan charge-offs to average
loans outstanding 0.24% 0.41% 0.20 0.39
Capital Ratios (Astoria Federal)
-------------------------------
Tangible 9.93% 9.24%
Tier 1 leverage 9.93 9.24
Total risk-based 17.05 16.49
Tier 1 risk-based 15.79 15.23
Other Data
----------
Cash dividends paid per common
share $0.04 $0.04 $0.16 $0.25
Book value per common share (5) 14.06 13.28
Tangible book value per common
share (6) 12.19 11.38
Tangible common stockholders'
equity/tangible assets (2) (7) 7.72% 6.80%
Mortgage loans serviced for
others (in thousands) $1,504,654 $1,443,672
Full time equivalent employees 1,540 1,530
(1) Returns on
average
common
stockholders'
equity and
average
tangible
common
stockholders'
equity are
calculated
using net
income
available
to common
shareholders.
Returns on
average
assets are
calculated
using net
income.
Tangible
common
stockholders'
equity
represents
common
stockholders'
equity
less
(2) goodwill.
(3) Efficiency
ratio
represents
general
and
administrative
expense
divided by
the sum of
net
interest
income
plus non-
interest
income.
(4) Non-
performing
loans at
December
31, 2013
included
$61.0
million of
loans
discharged
in a
Chapter 7
bankruptcy
filing
which were
less than
90 days
past due,
of which
$54.5
million
were
current,
$5.6
million
were 30-
59 days
delinquent
and
$878,000
were 60-
89 days
delinquent.
Such
loans have
been
classified
as non-
performing
loans
pursuant
to
regulatory
guidance
issued in
2012.
(5) Book value
per common
share
represents
common
stockholders'
equity
divided by
outstanding
common
shares,
excluding
unallocated
Employee
Stock
Ownership
Plan, or
ESOP,
shares at
December
31, 2012.
(6) Tangible
book value
per common
share
represents
tangible
common
stockholders'
equity
divided by
outstanding
common
shares,
excluding
unallocated
ESOP
shares at
December
31, 2012.
(7) Tangible
assets
represent
assets
less
goodwill.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
END OF PERIOD BALANCES AND RATES
--------------------------------
(Dollars in Thousands)
At December 31, At September 30, At December 31,
2013 2013 2012
---------------- ----------------- ----------------
Weighted Weighted Weighted
Average Average Average
Balance Rate Balance Rate Balance Rate
(1) (1) (1)
------- ----- ------- ----- ------- -----
Selected interest-earning assets:
Mortgage loans, gross (2):
Residential $7,802,898 3.48% $8,053,827 3.54% $9,420,175 3.73%
Multi-family and commercial real estate 4,089,025 4.02 3,914,505 4.09 3,163,067 4.65
Mortgage-backed and other securities (3) 2,251,216 2.87 2,331,211 2.90 2,036,441 3.26
Interest-bearing liabilities:
Savings 2,493,899 0.05 2,562,927 0.05 2,802,298 0.05
Money market 1,972,136 0.25 1,913,607 0.25 1,586,556 0.74
NOW and demand deposit 2,097,478 0.04 2,133,062 0.03 2,094,733 0.03
--------- --------- ---------
Total core deposits 6,563,513 0.11 6,609,596 0.10 6,483,587 0.21
Certificates of deposit 3,291,797 1.50 3,450,778 1.52 3,960,371 1.55
--------- --------- ---------
Total deposits 9,855,310 0.57 10,060,374 0.59 10,443,958 0.72
Borrowings, net 4,137,161 2.41 4,109,028 2.46 4,373,496 3.03
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at XhtmlFactory.XhtmlTableToTextConverter.GetTableRepresentation(Int32 intCallingMethod, List`1 arrMetaData, String strConstructedTableData, Int32 intTotalColumns, Int32[,] arrMergeInfo)
at XhtmlFactory.XhtmlTableToTextConverter.GenerateAsciiTable(List`1 arrTableDetails)
at XhtmlFactory.XhtmlTableToTextConverter.GetDownConvertedText(String strInputHtml, String strWidths, Dictionary`2 dictReplacementCharsInTable)
at PrimaryContent.GenerateASCIIContent()
SOURCE Astoria Financial Corporation
