ASTORIA FINANCIAL CORP LAKE SUCCESS, N.Y., July 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 $16.1 million, or $0.16 diluted earnings per common share ("diluted EPS"), for the quarter ended June 30, 2016, compared to net income available to common shareholders of $29.2 million, or $0.29 diluted EPS, for the quarter ended June 30, 2015. For the six months ended June 30, 2016, net income available to common shareholders totaled $32.5 million, or $0.32 diluted EPS compared to $46.4 million, or $0.46 diluted EPS, for the comparable 2015 period. Included in both the 2015 second quarter and six month results is a reduction in income tax expense of $11.4 million ($0.11 per common share) related to the impact of income tax legislation enacted in the second quarter of 2015, primarily related to New York City.
Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the results stated, "We are pleased that we continue to add value to the Astoria franchise as evidenced by the continued growth that we have seen in core deposits. Core deposits have grown by $131.8 million, including $81.5 million of business deposits since year end and now represent 81% of total deposits. In addition our high quality, higher yielding MF/CRE mortgage loan portfolio now represents 45% of the total loan portfolio."
Board Declares Quarterly Cash Dividend of $0.04 Per Share
The Board of Directors of the Company, at its July 27, 2016 meeting, declared a quarterly cash dividend of $0.04 per common share. The dividend is payable on August 19, 2016 to shareholders of record as of August 8, 2016. This is the eighty fifth consecutive quarterly cash dividend declared by the Company.
Second Quarter and Six Month Earnings Summary
Net interest income for the quarter ended June 30, 2016 totaled $83.1 million compared to $83.3 million for the previous quarter and $85.2 million for the 2015 second quarter. The net interest margin for the quarter ended June 30, 2016 was 2.36%, flat from the previous quarter and up slightly from 2.35% for the 2015 second quarter. For the six months ended June 30, 2016, net interest income totaled $166.3 million, compared to $170.9 million for the comparable 2015 period, and the net interest margin was 2.36% for the six months ended June 30, 2016, up slightly from 2.34% for the six months ended June 30, 2015.
For the quarter ended June 30, 2016, a $3.0 million loan loss release was recorded compared to a $3.1 million release in the prior quarter and a $3.0 million loan loss release recorded in the 2015 second quarter. For the six months ended June 30, 2016, we recorded a loan loss release of $6.1 million compared to a $3.3 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 including 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 June 30, 2015 totaled $11.9 million, compared to $11.4 million for the previous quarter and $15.3 million for the 2015 second quarter. Non-interest income for the six months ended June 30, 2016 totaled $23.3 million compared to $28.3 million for the comparable 2015 period. The decrease for the six months ended June 30, 2016 is primarily due to decreases in both mortgage banking income, net and customer service fees.
General and administrative ("G&A") expense for the quarter ended June 30, 2016 totaled $70.0 million compared to $69.5 million for the previous quarter and $71.9 million for the 2015 second quarter. For the six months ended June 30, 2016, G&A expense totaled $139.6 million, down from $142.0 million for the 2015 comparable period. The decrease for the six months ended June 30, 2016 was primarily attributable to a decrease in FDIC insurance premiums, advertising expense and other expense, partially offset by an increase in compensation and benefits expense.
Balance Sheet Summary
Total assets at June 30, 2016 were $15.0 billion, a decrease of $59.1 million from December 31, 2015. The decrease was primarily due to a decline in the loan portfolio which decreased $313.8 million from December 31, 2015 and totaled $10.8 billion at June 30, 2016, and a decrease in cash of $68.3 million, partially offset by an increase in the securities portfolio of $320.7 million over the same time period.
The MF/CRE mortgage loan portfolio totaled $4.9 billion at June 30, 2016, an increase of $66.4 million from December 31, 2015 and represents 45% of the total loan portfolio. For the quarter and six months ended June 30, 2016, MF/CRE loan originations totaled $193.6 million and $411.0 million, respectively, compared to $192.8 million and $452.7 million, for the 2015 comparable periods. The MF/CRE loan production for the 2016 second quarter and six months ended June 30, 2016 were originated with weighted average loan-to-value ratios of approximately 43%, and weighted average debt coverage ratios of approximately 1.70 and 1.54, respectively. MF/CRE loan prepayments for the quarter and six months ended June 30, 2016 totaled $135.9 million and $272.2 million, respectively, down from $212.6 million and $358.8 million for the comparable 2015 periods. At June 30, 2016, the MF/CRE pipeline totaled approximately $227.0 million.
The residential mortgage loan portfolio totaled $5.6 billion at June 30, 2016, compared to $6.0 billion at December 31, 2015. For the quarter and six months ended June 30, 2016, residential loan originations for portfolio totaled $173.2 million and $262.7 million, respectively, compared to $222.1 million and $362.6 million for the 2015 comparable periods. The weighted average loan-to-value ratio of the residential loan production for portfolio at origination was approximately 59% for both the quarter and six months ended June 30, 2016. Residential loan prepayments for the quarter and six months ended June 30, 2016 totaled $289.4 million and $501.5 million, respectively, down from $392.9 million and $672.7 million for the comparable 2015 periods. At June 30, 2016, the residential mortgage pipeline totaled approximately $402.8 million.
Core deposits increased to $7.2 billion at June 30, 2016 from $7.1 billion at December 31, 2015. This increase was primarily due to an increase in business checking deposits. At June 30, 2016, core deposits represented 81% of total deposits and had a weighted average rate of 12 basis points. Certificates of deposit decreased by $286.7 million over the same time period and had a weighted average rate of 98 basis points at June 30, 2016. Total deposits were $9.0 billion at June 30, 2016, a decrease of $154.9 million since year end 2015.
Stockholders' equity totaled $1.70 billion, or 11.29% of total assets at June 30, 2016, an increase of $31.9 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 June 30, 2016, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 11.54%, 20.22%, 20.22% and 21.30%, respectively for Astoria Bank, and 10.46%, 16.93%, 18.41% and 19.48%, respectively for Astoria Financial Corporation. At June 30, 2016, Astoria Financial Corporation's tangible common equity ratio was 9.31%.
Asset Quality
Non-performing loans ("NPLs"), totaled $155.2 million, or 1.43% of total loans, at June 30, 2016, compared to $138.2 million, or 1.24% of total loans, at December 31, 2015. Included in the NPLs at June 30, 2016 is $48.5 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 June 30, 2016 were $238.6 million compared to $243.7 million at December 31, 2015. Net charge-offs for the quarter ended June 30, 2016 totaled $1.2 million compared to $673,000 in the previous quarter and $33,000 in the 2015 second quarter. For the six months ended June 30, 2016, net charge-offs totaled $1.9 million compared to $790,000 for the 2015 comparable period.
Other real estate owned declined to $14.9 million at June 30. 2016, compared to $19.8 million at December 31, 2015.
Future Outlook
Commenting on the Company's future outlook, Mr. Redman stated, "As we previously announced on October 29, 2015, we have entered into a definitive agreement to merge with New York Community Bancorp ("NYCB") which has been overwhelmingly approved by the respective shareholders of both Astoria and NYCB at their shareholder meetings. We 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 $15.0 billion, is the holding company for Astoria Bank. Established in 1888, Astoria Bank, with deposits in New York totaling $9.0 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.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
----------------------------------------------
(In Thousands, Except Share Data)
(Unaudited)
At June 30, At December 31,
2016 2015
ASSETS
------
Cash and due from banks $132,195 $200,538
Securities available-for-sale 356,347 416,798
Securities held-to-maturity
(fair value
of
$2,716,702
and
$2,286,092,
respectively) 2,677,930 2,296,799
Federal Home Loan Bank of New York
stock, at cost 137,909 131,137
Loans held-for-sale, net 6,843 8,960
Loans receivable:
Mortgage
loans, net 10,581,171 10,899,776
Consumer and
other loans,
net 258,158 253,305
10,839,329 11,153,081
Allowance for
loan losses (90,000) (98,000)
Total loans receivable, net 10,749,329 11,055,081
Mortgage servicing rights, net 8,881 11,014
Accrued interest receivable 35,565 34,996
Premises and equipment, net 106,601 109,758
Goodwill 185,151 185,151
Bank owned life insurance 442,271 439,646
Real estate owned, net 14,940 19,798
Other assets 163,109 166,535
TOTAL ASSETS $15,017,071 $15,076,211
LIABILITIES
-----------
Deposits $8,951,130 $9,106,027
Federal funds purchased 295,000 435,000
Reverse repurchase agreements 1,100,000 1,100,000
Federal Home Loan Bank of New York
advances 2,374,000 2,180,000
Other borrowings, net 249,487 249,222
Mortgage escrow funds 131,042 115,435
Accrued expenses and other
liabilities 221,088 227,079
TOTAL LIABILITIES 13,321,747 13,412,763
STOCKHOLDERS' EQUITY
--------------------
Preferred stock, $1.00 par value;
5,000,000 shares authorized:
129,796 129,796
Series C
(150,000
shares
authorized;
and 135,000
shares
issued and
outstanding)
Common stock, $0.01 par value
(200,000,000 shares authorized;
1,665 1,665
166,494,888
shares
issued; and
101,341,169
and
100,721,358
shares
outstanding,
respectively)
Additional paid-in capital 895,095 902,349
Retained earnings 2,066,471 2,045,391
Treasury stock (65,153,719 and
65,773,530 shares, at cost,
respectively) (1,344,347) (1,357,136)
Accumulated other comprehensive loss (53,356) (58,617)
TOTAL STOCKHOLDERS' EQUITY 1,695,324 1,663,448
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $15,017,071 $15,076,211
=========== ===========
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
---------------------------------------------
(In Thousands, Except Share Data)
For the Three Months For the Six Months
Ended Ended
June 30, June 30,
-------- --------
2016 2015 2016 2015
Interest income:
Residential
mortgage loans $45,683 $51,375 $93,058 $105,337
Multi-family and
commercial real
estate mortgage
loans 46,607 48,611 93,412 96,103
Consumer and
other loans 2,435 2,242 4,807 4,432
Mortgage-backed
and other
securities 17,400 15,238 34,304 30,308
Interest-earning
cash accounts 116 107 236 196
Federal Home Loan
Bank of New York
stock 1,487 1,461 2,908 2,983
Total interest income 113,728 119,034 228,725 239,359
Interest expense:
Deposits 6,557 9,944 14,019 20,673
Borrowings 24,085 23,940 48,368 47,815
Total interest expense 30,642 33,884 62,387 68,488
Net interest income 83,086 85,150 166,338 170,871
Provision for loan losses credited to
operations (3,006) (2,967) (6,133) (3,310)
Net interest income after provision for loan
losses 86,092 88,117 172,471 174,181
Non-interest income:
Customer service
fees 7,542 8,871 14,530 17,082
Other loan fees 567 553 1,101 1,106
Gain on sales of
securities - 72 86 72
Mortgage banking
income, net 155 2,076 118 2,403
Income from bank
owned life
insurance 2,336 2,179 4,625 4,376
Other 1,316 1,591 2,857 3,236
Total non-interest income 11,916 15,342 23,317 28,275
Non-interest expense:
General and
administrative:
Compensation and benefits 36,708 37,655 74,961 73,936
Occupancy, equipment and systems 18,840 18,980 38,231 38,638
Federal deposit insurance premium 3,031 4,335 6,561 8,536
Advertising 3,018 2,801 4,471 5,065
Other 8,452 8,105 15,347 15,813
----- ----- ------ ------
Total non-interest expense 70,049 71,876 139,571 141,988
------
Income before income tax expense 27,959 31,583 56,217 60,468
Income tax expense 9,623 152 19,316 9,730
----- --- ------ -----
Net income 18,336 31,431 36,901 50,738
Preferred stock dividends 2,194 2,194 4,388 4,388
----- ----- ----- -----
Net income available to common
shareholders $16,142 $29,237 $32,513 $46,350
Basic and diluted earnings per
common share $0.16 $0.29 $0.32 $0.46
Basic and diluted weighted average
common shares outstanding 100,380,937 99,664,442 100,374,934 99,459,376
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Three Months Ended June 30,
2016 2015
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annualized) (Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
Residential $5,765,172 $45,683 3.17% $6,585,358 $51,375 3.12%
Multi-family and commercial real estate 4,919,210 46,607 3.79 4,808,839 48,611 4.04
Consumer and other loans
(1) 259,680 2,435 3.75 250,253 2,242 3.58
------- ----- ------- -----
Total loans 10,944,062 94,725 3.46 11,644,450 102,228 3.51
Mortgage-backed and other
securities (2) 2,884,084 17,400 2.41 2,551,521 15,238 2.39
Interest-earning cash
accounts 111,036 116 0.42 147,230 107 0.29
Federal Home Loan Bank
stock 129,290 1,487 4.60 137,635 1,461 4.25
------- ----- ------- -----
Total interest-earning assets 14,068,472 113,728 3.23 14,480,836 119,034 3.29
------- -------
Goodwill 185,151 185,151
Other non-interest-earning
assets 765,655 730,500
------- -------
Total assets $15,019,278 $15,396,487
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
NOW and demand deposit $2,465,516 203 0.03 $2,284,443 194 0.03
Money market 2,642,778 1,805 0.27 2,421,514 1,599 0.26
Savings 2,121,019 264 0.05 2,211,870 276 0.05
--------- --- --------- ---
Total core deposits 7,229,313 2,272 0.13 6,917,827 2,069 0.12
Certificates of deposit 1,742,512 4,285 0.98 2,384,967 7,875 1.32
--------- ----- --------- -----
Total deposits 8,971,825 6,557 0.29 9,302,794 9,944 0.43
Borrowings 3,914,205 24,085 2.46 4,052,628 23,940 2.36
--------- ------ --------- ------
Total interest-bearing
liabilities 12,886,030 30,642 0.95 13,355,422 33,884 1.01
------ ------
Non-interest-bearing
liabilities 446,130 428,607
------- -------
Total liabilities 13,332,160 13,784,029
Stockholders' equity 1,687,118 1,612,458
Total liabilities and
stockholders' equity $15,019,278 $15,396,487
Net interest income/
net interest rate spread (3) $83,086 2.28% $85,150 2.28%
======= ==== ======= ====
Net interest-earning assets/
net interest margin (4) $1,182,442 2.36% $1,125,414 2.35%
========== ==== ========== ====
1.09x 1.08x
Ratio of interest-earning assets
to
interest-bearing liabilities
(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) NOW and demand deposit
accounts include non-
interest bearing accounts
with an average balance of
$1.05 billion for the three
months ending June 30, 2016
and $935.9 million for the
three months ended June 30,
2015.
(4) 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.
(5) Net interest margin
represents net interest
income divided by average
interest-earning assets.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Six Months Ended June 30,
---------------------------------
2016 2015
----
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annualized) (Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
Residential $5,863,516 $93,058 3.17% $6,700,820 $105,337 3.14%
Multi-family and commercial real estate 4,898,823 93,412 3.81 4,820,377 96,103 3.99
Consumer and other loans
(1) 256,599 4,807 3.75 252,808 4,432 3.51
------- ----- ------- -----
Total loans 11,018,938 191,277 3.47 11,774,005 205,872 3.50
Mortgage-backed and other
securities (2) 2,806,702 34,304 2.44 2,527,947 30,308 2.40
Interest-earning cash
accounts 136,634 236 0.35 139,033 196 0.28
Federal Home Loan Bank
stock 131,093 2,908 4.44 141,046 2,983 4.23
------- ----- ------- -----
Total interest-earning assets 14,093,367 228,725 3.25 14,582,031 239,359 3.28
------- -------
Goodwill 185,151 185,151
Other non-interest-earning
assets 754,232 725,667
------- -------
Total assets $15,032,750 $15,492,849
Liabilities and stockholders'
equity:
Interest-bearing liabilities:
NOW and demand deposit $2,420,400 398 0.03 $2,246,517 383 0.03
Money market 2,625,394 3,570 0.27 2,400,339 3,154 0.26
Savings 2,123,439 529 0.05 2,221,086 551 0.05
--------- --- --------- ---
Total core deposits 7,169,233 4,497 0.13 6,867,942 4,088 0.12
Certificates of deposit 1,823,429 9,522 1.04 2,467,172 16,585 1.34
--------- ----- --------- ------
Total deposits 8,992,662 14,019 0.31 9,335,114 20,673 0.44
Borrowings 3,938,457 48,368 2.46 4,143,921 47,815 2.31
--------- ------ --------- ------
Total interest-bearing
liabilities 12,931,119 62,387 0.96 13,479,035 68,488 1.02
------ ------
Non-interest-bearing
liabilities 422,154 412,890
------- -------
Total liabilities 13,353,273 13,891,925
Stockholders' equity 1,679,477 1,600,924
Total liabilities and
stockholders' equity $15,032,750 $15,492,849
Net interest income/
net interest rate spread (3) $166,338 2.29% $170,871 2.26%
======== ==== ======== ====
Net interest-earning assets/
net interest margin (4) $1,162,248 2.36% $1,102,996 2.34%
========== ==== ========== ====
1.09x 1.08x
Ratio of interest-earning assets
to
interest-bearing liabilities
(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) NOW and demand deposit
accounts include non-
interest bearing accounts
with an average balance of
$1.03 billion for the six
months ending June 30, 2016
and $909.8 million for the
six months ended June 30,
2015.
(4) 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.
(5) Net interest margin
represents net interest
income divided by average
interest-earning assets.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
----------------------------------------
For the At or For the
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2016 2015 2016 2015
---- ---- ---- ----
Selected Returns and Financial Ratios (annualized)
-------------------------------------------------
Return on average common
stockholders' equity (1) 4.15% 7.89% 4.20% 6.30%
Return on average tangible
common stockholders'
equity (1) (2) 4.71 9.01 4.77 7.21
Return on average assets
(1) 0.49 0.82 0.49 0.65
General and administrative
expense to average assets 1.87 1.87 1.86 1.83
Efficiency ratio (3) 73.73 71.52 73.59 71.30
Net interest rate spread 2.28 2.28 2.29 2.26
Net interest margin 2.36 2.35 2.36 2.34
Selected Non-GAAP Returns and Financial Ratios (annualized) (4)
--------------------------------------------------------------
Non-GAAP return on
average common
stockholders' equity (1) 4.15% 4.81% 4.20% 4.75%
Non-GAAP return on
average tangible common
stockholders' equity (1)
(2) 4.71 5.50 4.77 5.44
Non-GAAP return on
average assets (1) 0.49 0.52 0.49 0.51
Asset Quality Data (dollars in thousands)
----------------------------------------
Non-performing loans:
Current $40,839 $48,851
30-59 days delinquent 3,308 4,861
60-89 days delinquent 4,315 2,968
90 days or more delinquent 106,729 66,155
------- ------
Non-performing loans 155,191 122,835
Real estate owned 14,940 23,399
Non-performing assets $170,131 $146,234
Net loan charge-offs $1,194 $33 $1,867 $790
Non-performing loans/
total loans 1.43% 1.07%
Non-performing loans/
total assets 1.03 0.80
Non-performing assets/
total assets 1.13 0.96
Allowance for loan losses/
non-performing loans 57.99 87.52
Allowance for loan losses/
total loans 0.83 0.93
Net loan charge-offs to
average loans outstanding 0.04% 0.00% 0.03 0.01
Regulatory Capital Ratios
-------------------------
Astoria Bank:
Tier 1 leverage 11.54% 10.95%
Common equity tier 1 risk-based 20.22 18.83
Tier 1 risk-based 20.22 18.83
Total risk-based 21.30 20.06
Astoria Financial
Corporation:
Tier 1 leverage 10.46% 9.83
Common equity tier 1 risk-based 16.93 15.59
Tier 1 risk-based 18.41 16.96
Total risk-based 19.48 18.19
Other Data
----------
Cash dividends paid per
common share $0.04 $0.04 $0.08 $0.08
Book value per common
share 15.45 14.87
Tangible book value per
common share 13.62 13.03
Tangible common
stockholders' equity/
tangible assets (2) (5) 9.31% 8.69%
Mortgage loans serviced
for others (in thousands) $1,372,601 $1,420,338
Full time equivalent
employees 1,450 1,579
(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
six months
ended June
30, 2015.
There were no
non-GAAP
adjustments
to the
selected
ratios for
the 2016
periods.
(5) Tangible
assets
represent
assets less
goodwill.
END OF PERIOD BALANCES AND RATES
--------------------------------
(Dollars in Thousands)
At June 30, 2016 At March 31, 2016 At June 30, 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 $5,537,322 3.37% $5,731,303 3.34% $6,367,966 3.33%
Multi-family and commercial real estate 4,898,430 3.62 4,876,068 3.64 4,793,658 3.71
Mortgage-backed and other securities (3) 3,034,277 2.65 2,832,381 2.67 2,585,627 2.75
Interest-bearing liabilities:
NOW and demand deposit 2,463,702 0.03 2,482,665 0.03 2,186,470 0.05
Money market 2,674,935 0.27 2,635,057 0.27 2,446,428 0.27
Savings 2,104,975 0.05 2,136,721 0.05 2,287,319 0.03
--------- --------- ---------
Total core deposits 7,243,612 0.12 7,254,443 0.12 6,920,217 0.12
Certificates of deposit 1,707,518 0.98 1,797,096 1.03 2,307,553 1.31
--------- --------- ---------
Total deposits 8,951,130 0.28 9,051,539 0.30 9,227,770 0.42
Borrowings, net 4,018,487 2.38 3,899,354 2.45 4,058,957 2.33
(1) Weighted average rates represent stated or
coupon interest rates excluding the effect of
yield adjustments for premiums, discounts and
deferred loan origination fees and costs and
the impact of prepayment penalties.
(2) Mortgage loans exclude loans held-for-sale
and non-performing loans, except non-
performing residential mortgage loans which
are current or less than 90 days past due.
(3) Securities available-for-sale are reported at
fair value and securities held-to-maturity
are reported at amortized cost.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
----------------------------------------------------
(In Thousands, Except Per Share Data)
Income and expense and related financial ratios determined in
accordance with US generally accepted accounting principles (GAAP or
GAAP measures) excluding the adjustment detailed in the following
table (non-GAAP measures) provides a meaningful comparison for
effectively evaluating Astoria's operating results.
For the Three Months Ended
--------------------------
June 30, 2016 June 30, 2015
------------- -------------
GAAP Adjustment Non-GAAP GAAP Adjustment (1) Non-GAAP
---- ---------- -------- ---- ------------- --------
Income before income tax expense $27,959 $ - $27,959 $31,583 $ - $31,583
Income tax expense 9,623 - 9,623 152 11,404 11,556
----- --- ----- --- ------ ------
Net income 18,336 - 18,336 31,431 (11,404) 20,027
Preferred stock dividends 2,194 - 2,194 2,194 - 2,194
----- --- ----- ----- --- -----
Net income available to common shareholders $16,142 $ - $16,142 $29,237 $(11,404) $17,833
======= ================= ======= ======= ======== =======
Basic and diluted earnings per common share $0.16 $ - $0.16 $0.29 $(0.11) $0.18
===== ================= ===== ===== ====== =====
For the Six Months Ended
------------------------
June 30, 2016 June 30, 2015
------------- -------------
GAAP Adjustment Non-GAAP GAAP Adjustment (1) Non-GAAP
---- ---------- -------- ---- ------------- --------
Income before income tax expense $56,217 $ - $56,217 $60,468 $ - $60,468
Income tax expense 19,316 - 19,316 9,730 11,404 21,134
------ --- ------ ----- ------ ------
Net income 36,901 - 36,901 50,738 (11,404) 39,334
Preferred stock dividends 4,388 - 4,388 4,388 - 4,388
----- --- ----- ----- --- -----
Net income available to common shareholders $32,513 $ - $32,513 $46,350 $(11,404) $34,946
======= ================= ======= ======= ======== =======
Basic and diluted earnings per common share $0.32 $ - $0.32 $0.46 $(0.11) $0.35
===== ================= ===== ===== ====== =====
Non-GAAP returns and earnings per
common share are calculated
substituting non-GAAP net income
and non-GAAP net income available
to common shareholders for net
income and net income available to
common shareholders in the
corresponding calculation.
(1) The 2015
adjustment
represents
the effects
of income tax
legislation
enacted in
the 2015
second
quarter,
primarily
related to
New York
City, which
was reflected
in our net
deferred tax
asset in the
statement of
financial
condition
with a
corresponding
adjustment to
income tax
expense in
the period of
enactment.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/astoria-financial-corporation-reports-2016-second-quarter-earnings-per-common-share-of-016-300305128.html
SOURCE Astoria Financial Corporation
