ASTORIA FINANCIAL CORP LAKE SUCCESS, N.Y., Oct. 26, 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 $16.5 million, or $0.16 diluted earnings per common share ("diluted EPS"), for the quarter ended September 30, 2016, compared to net income available to common shareholders of $16.7 million, or $0.17 diluted EPS, for the quarter ended September 30, 2015. For the nine months ended September 30, 2016, net income available to common shareholders totaled $49.0 million, or $0.48 diluted EPS compared to $63.1 million, or $0.63 diluted EPS, for the comparable 2015 period. Included in the 2015 nine month 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, "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 $166.2 million, including $107.9 million of business deposits since year end and now represent 82% of total deposits. In addition our high quality, higher yielding MF/CRE mortgage loan portfolio now represents 46% of the total loan portfolio."
Board Declares Quarterly Cash Dividend of $0.04 Per Share
The Board of Directors of the Company, at its October 26, 2016 meeting, declared a quarterly cash dividend of $0.04 per common share. The dividend is payable on November 18, 2016 to shareholders of record as of November 7, 2016. This is the eighty sixth consecutive quarterly cash dividend declared by the Company.
Third Quarter and Nine Month Earnings Summary
Net interest income for the quarter ended September 30, 2016 totaled $83.6 million compared to $83.1 million for the previous quarter and $84.7 million for the 2015 third quarter. The net interest margin for the quarter ended September 30, 2016 was 2.39%, up from 2.36% for the previous quarter and 2.37% for the 2015 third quarter. For the nine months ended September 30, 2016, net interest income totaled $250.0 million, compared to $255.6 million for the comparable 2015 period, and the net interest margin was 2.37% for the nine months ended September 30, 2016, up slightly from 2.35% for the nine months ended September 30, 2015.
For the quarter ended September 30, 2016, a $1.0 million loan loss release was recorded compared to a $3.0 million release in the prior quarter and a $4.4 million loan loss release recorded in the 2015 third quarter. For the nine months ended September 30, 2016, we recorded a loan loss release of $7.1 million compared to a $7.7 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 September 30, 2016 totaled $12.8 million, compared to $11.9 million for the previous quarter and $12.9 million for the 2015 third quarter. Non-interest income for the nine months ended September 30, 2016 totaled $36.1 million compared to $41.1 million for the comparable 2015 period. The decrease for the nine months ended September 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 September 30, 2016 totaled $68.7 million compared to $70.0 million for the previous quarter and $72.6 million for the 2015 third quarter. For the nine months ended September 30, 2016, G&A expense totaled $208.3 million, down from $214.6 million for the 2015 comparable period. The decrease for the nine months ended September 30, 2016 was primarily attributable to a decrease in FDIC insurance premiums, advertising expense and other expense.
Balance Sheet Summary
Total assets at September 30, 2016 were $14.8 billion, a decrease of $262.3 million from December 31, 2015. The decrease was primarily due to a decline in the loan portfolio which decreased $522.4 million from December 31, 2015 and totaled $10.6 billion at September 30, 2016, partially offset by an increase in the securities portfolio of $345.8 million over the same time period.
The MF/CRE mortgage loan portfolio totaled $4.9 billion at September 30, 2016, an increase of $6.7 million from December 31, 2015 and represents 46% of the total loan portfolio. For the quarter and nine months ended September 30, 2016, MF/CRE loan originations totaled $209.3 million and $620.2 million, respectively, compared to $137.6 million and $590.3 million, for the 2015 comparable periods. The MF/CRE loan production for the 2016 third quarter and nine months ended September 30, 2016 were originated with weighted average loan-to-value ratios of approximately 47% and 44%, respectively, and weighted average debt coverage ratios of approximately 1.61 and 1.57, respectively. MF/CRE loan prepayments for the quarter and nine months ended September 30, 2016 totaled $233.8 million and $506.0 million, respectively, compared to $173.8 million and $532.6 million for the comparable 2015 periods. At September 30, 2016, the MF/CRE pipeline totaled approximately $99.6 million.
The residential mortgage loan portfolio totaled $5.5 billion at September 30, 2016, compared to $6.0 billion at December 31, 2015. For the quarter and nine months ended September 30, 2016, residential loan originations for portfolio totaled $261.5 million and $524.2 million, respectively, compared to $151.5 million and $514.0 million for the 2015 comparable periods. The weighted average loan-to-value ratio of the residential loan production for portfolio at origination was approximately 62% and 61%, respectively, for the quarter and nine months ended September 30, 2016. Residential loan prepayments for the quarter and nine months ended September 30, 2016 totaled $320.5 million and $822.0 million, respectively, compared to $276.2 million and $948.9 million for the comparable 2015 periods. At September 30, 2016, the residential mortgage pipeline totaled approximately $368.3 million.
Core deposits increased to $7.3 billion at September 30, 2016 from $7.1 billion at December 31, 2015. This increase was primarily due to an increase in business checking deposits. At September 30, 2016, core deposits represented 82% of total deposits and had a weighted average rate of 13 basis points. Certificates of deposit decreased by $344.6 million over the same time period and had a weighted average rate of 98 basis points at September 30, 2016. Total deposits were $8.9 billion at September 30, 2016, a decrease of $178.4 million since year end 2015.
Stockholders' equity totaled $1.71 billion, or 11.53% of total assets at September 30, 2016, an increase of $44.2 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 September 30, 2016, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 11.75%, 21.07%, 21.07% and 22.14%, respectively for Astoria Bank, and 10.61%, 17.58%, 19.09% and 20.17%, respectively for Astoria Financial Corporation. At September 30, 2016, Astoria Financial Corporation's tangible common equity ratio was 9.52%.
Asset Quality
Non-performing loans ("NPLs"), totaled $150.9 million, or 1.42% of total loans, at September 30, 2016, compared to $138.2 million, or 1.24% of total loans, at December 31, 2015. Included in the NPLs at September 30, 2016 is $47.1 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 September 30, 2016 were $235.6 million compared to $243.7 million at December 31, 2015. Net charge-offs for the quarter ended September 30, 2016 totaled $1.3 million compared to $1.2 million in the previous quarter and a net recovery of $439,000 in the 2015 third quarter. For the nine months ended September 30, 2016, net charge-offs totaled $3.2 million compared to $351,000 for the 2015 comparable period.
Other real estate owned declined to $14.6 million at September 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 $14.8 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 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 also 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, 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.
Tables Follow
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
----------------------------------------------
(In Thousands, Except Share Data)
(Unaudited)
At September 30, At December 31,
2016 2015
ASSETS
------
Cash and due from banks $132,799 $200,538
Securities available-for-sale 308,231 416,798
Securities held-to-maturity
2,751,175 2,296,799
(fair value of $2,773,570 and $2,286,092, respectively)
Federal Home Loan Bank of New York stock, at cost 130,820 131,137
Loans held-for-sale, net 5,550 8,960
Loans receivable:
10,387,608 10,899,776
Mortgage loans, net
243,053 253,305
Consumer and other loans, net
10,630,661 11,153,081
(87,700) (98,000)
Allowance for loan losses
Total loans receivable, net 10,542,961 11,055,081
Mortgage servicing rights, net 8,580 11,014
Accrued interest receivable 34,834 34,996
Premises and equipment, net 103,971 109,758
Goodwill 185,151 185,151
Bank owned life insurance 442,228 439,646
Real estate owned, net 14,592 19,798
Other assets 153,050 166,535
TOTAL ASSETS $14,813,942 $15,076,211
LIABILITIES
-----------
Deposits $8,927,644 $9,106,027
Federal funds purchased 245,000 435,000
Reverse repurchase agreements 1,100,000 1,100,000
Federal Home Loan Bank of New York advances 2,220,000 2,180,000
Other borrowings, net 249,620 249,222
Mortgage escrow funds 143,383 115,435
Accrued expenses and other liabilities 220,633 227,079
TOTAL LIABILITIES 13,106,280 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
129,796 129,796
and outstanding)
Common stock, $0.01 par value (200,000,000 shares authorized;
166,494,888 shares issued; and 101,328,740and 100,721,358 shares
outstanding, respectively) 1,665 1,665
Additional paid-in capital 895,741 902,349
Retained earnings 2,078,990 2,045,391
Treasury stock (65,166,148 and 65,773,530 shares, at cost, respectively) (1,344,603) (1,357,136)
Accumulated other comprehensive loss (53,927) (58,617)
TOTAL STOCKHOLDERS' EQUITY 1,707,662 1,663,448
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $14,813,942 $15,076,211
=========== ===========
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
---------------------------------------------
(In Thousands, Except Share Data)
For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
Interest income:
Residential mortgage loans $44,582 $49,899 $137,640 $155,236
Multi-family and commercial real estate
mortgage loans 47,795 47,979 141,207 144,082
Consumer and other loans 2,456 2,208 7,263 6,640
Mortgage-backed and other securities 17,873 15,816 52,177 46,124
Interest-earning cash accounts 110 109 346 305
Federal Home Loan Bank of New York stock 1,526 1,407 4,434 4,390
Total interest income 114,342 117,418 343,067 356,777
Interest expense:
Deposits 6,463 8,577 20,482 29,250
Borrowings 24,238 24,107 72,606 71,922
Total interest expense 30,701 32,684 93,088 101,172
Net interest income 83,641 84,734 249,979 255,605
Provision for loan losses credited to operations (995) (4,439) (7,128) (7,749)
Net interest income after provision for loan losses 84,636 89,173 257,107 263,354
Non-interest income:
Customer service fees 7,107 8,322 21,637 25,404
Other loan fees 566 637 1,667 1,743
Gain on sales of securities - - 86 72
Mortgage banking income, net 916 132 1,034 2,535
Income from bank owned life insurance 2,294 2,222 6,919 6,598
Other 1,883 1,539 4,740 4,775
Total non-interest income 12,766 12,852 36,083 41,127
Non-interest expense:
General and administrative:
Compensation and benefits 37,725 38,356 112,686 112,292
Occupancy, equipment and systems 19,713 18,962 57,944 57,600
Federal deposit insurance premium 3,151 4,163 9,712 12,699
Advertising 742 2,784 5,213 7,849
Other 7,377 8,324 22,724 24,137
----- ----- ------ ------
Total non-interest expense 68,708 72,589 208,279 214,577
------
Income before income tax expense 28,694 29,436 84,911 89,904
Income tax expense 10,003 10,530 29,319 20,260
------ ------ ------ ------
Net income 18,691 18,906 55,592 69,644
Preferred stock dividends 2,194 2,194 6,582 6,582
----- ----- ----- -----
Net income available to common shareholders $16,497 $16,712 $49,010 $63,062
Basic earnings per common share $0.16 $0.17 $0.48 $0.63
Diluted earnings per common share $0.16 $0.17 $0.48 $0.63
Basic weighted average common shares outstanding 100,383,631 99,700,759 100,377,618 99,540,721
Diluted weighted average common shares outstanding 100,383,631 100,067,159 100,377,618 99,907,121
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Three Months Ended September 30,
2016 2015
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annualized) (Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
$5,599,532 $44,582 3.18% $6,359,317 $49,899 3.14%
Residential
4,880,055 47,795 3.92 4,789,550 47,979 4.01
Multi-family and commercial real estate
248,053 2,456 3.96 245,987 2,208 3.59
Consumer and other loans (1)
10,727,640 94,833 3.54 11,394,854 100,086 3.51
Total loans
3,024,369 17,873 2.36 2,608,324 15,816 2.43
Mortgage-backed and other securities
(2)
107,872 110 0.41 147,229 109 0.30
Interest-earning cash accounts
134,553 1,526 4.54 134,648 1,407 4.18
Federal Home Loan Bank stock
13,994,434 114,342 3.27 14,285,055 117,418 3.29
Total interest-earning assets
185,151 185,151
Goodwill
757,396 728,658
Other non-interest-earning assets
Total assets $14,936,981 $15,198,864
Liabilities and stockholders' equity:
Interest-bearing liabilities:
$2,464,974 204 0.03 $2,273,963 198 0.03
NOW and demand deposit
2,692,930 1,911 0.28 2,487,984 1,645 0.26
Money market
2,093,032 264 0.05 2,171,057 273 0.05
Savings
7,250,936 2,379 0.13 6,933,004 2,116 0.12
Total core deposits
1,676,833 4,084 0.97 2,153,084 6,461 1.20
Certificates of deposit
8,927,769 6,463 0.29 9,086,088 8,577 0.38
Total deposits
3,916,586 24,238 2.48 4,077,448 24,107 2.36
Borrowings
12,844,355 30,701 0.96 13,163,536 32,684 0.99
Total interest-bearing liabilities
391,504 398,874
Non-interest-bearing liabilities
Total liabilities 13,235,859 13,562,410
Stockholders' equity 1,701,122 1,636,454
Total liabilities and stockholders'
equity $14,936,981 $15,198,864
Net interest income/
$83,641 2.31% $84,734 2.30%
net interest rate spread (3)
Net interest-earning assets/
$1,150,079 2.39% $1,121,519 2.37%
net interest margin (4)
Ratio of interest-earning assets to
1.09x 1.09x
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) 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 Nine Months Ended September 30,
2016 2015
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annualized) (Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
$5,774,879 $137,640 3.18% $6,585,735 $155,236 3.14%
Residential
4,892,522 141,207 3.85 4,809,988 144,082 3.99
Multi-family and commercial real estate
253,730 7,263 3.82 250,509 6,640 3.53
Consumer and other loans (1)
10,921,131 286,110 3.49 11,646,232 305,958 3.50
Total loans
2,879,787 52,177 2.42 2,555,034 46,124 2.41
Mortgage-backed and other securities
(2)
126,976 346 0.36 141,795 305 0.29
Interest-earning cash accounts
132,255 4,434 4.47 138,890 4,390 4.21
Federal Home Loan Bank stock
14,060,149 343,067 3.25 14,481,951 356,777 3.28
Total interest-earning assets
185,151 185,151
Goodwill
755,101 726,154
Other non-interest-earning assets
Total assets $15,000,401 $15,393,256
Liabilities and stockholders' equity:
Interest-bearing liabilities:
$2,435,367 602 0.03 $2,255,767 581 0.03
NOW and demand deposit
2,648,070 5,481 0.28 2,429,875 4,799 0.26
Money market
2,113,229 793 0.05 2,204,226 824 0.05
Savings
7,196,666 6,876 0.13 6,889,868 6,204 0.12
Total core deposits
1,774,207 13,606 1.02 2,361,325 23,046 1.30
Certificates of deposit
8,970,873 20,482 0.30 9,251,193 29,250 0.42
Total deposits
3,931,114 72,606 2.46 4,121,519 71,922 2.33
Borrowings
12,901,987 93,088 0.96 13,372,712 101,172 1.01
Total interest-bearing liabilities
411,863 408,167
Non-interest-bearing liabilities
Total liabilities 13,313,850 13,780,879
Stockholders' equity 1,686,551 1,612,377
Total liabilities and stockholders'
equity $15,000,401 $15,393,256
Net interest income/
$249,979 2.29% $255,605 2.27%
net interest rate spread (3)
Net interest-earning assets/
$1,158,162 2.37% $1,109,239 2.35%
net interest margin (4)
Ratio of interest-earning assets to
1.09x 1.08x
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) 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 Nine Months Ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
---- ---- ---- ----
Selected Returns and Financial Ratios (annualized)
-------------------------------------------------
Return on average common stockholders' equity (1) 4.20% 4.44% 4.20% 5.67%
Return on average tangible common stockholders' equity (1) (2) 4.76 5.06 4.76 6.48
Return on average assets (1) 0.50 0.50 0.49 0.60
General and administrative expense to average assets 1.84 1.91 1.85 1.86
Efficiency ratio (3) 71.27 74.38 72.81 72.31
Net interest rate spread 2.31 2.30 2.29 2.27
Net interest margin 2.39 2.37 2.37 2.35
Selected Non-GAAP Returns and Financial Ratios (annualized) (4)
--------------------------------------------------------------
Non-GAAP return on average common stockholders' equity (1) 4.20% 4.44% 4.20% 4.65%
Non-GAAP return on average tangible common stockholders'
equity (1) (2) 4.76 5.06 4.76 5.31
Non-GAAP return on average assets (1) 0.50 0.50 0.49 0.50
Asset Quality Data (dollars in thousands)
----------------------------------------
Non-performing loans:
$38,828 $48,021
Current
5,628 7,200
30-59 days delinquent
2,618 3,872
60-89 days delinquent
103,830 72,615
90 days or more delinquent
Non-performing loans 150,904 131,708
Real estate owned 14,592 19,146
Non-performing assets $165,496 $150,854
Net loan charge-offs (recoveries) $1,305 $(439) $3,172 $351
Non-performing loans/total loans 1.42% 1.17%
Non-performing loans/total assets 1.02 0.87
Non-performing assets/total assets 1.12 1.00
Allowance for loan losses/non-performing loans 58.12 78.58
Allowance for loan losses/total loans 0.83 0.92
Net loan charge-offs (recoveries) to average loans outstanding
(annualized) 0.05% (0.02)% 0.04 0.00
Regulatory Capital Ratios
-------------------------
Astoria Bank:
11.75% 11.00%
Tier 1 leverage
21.07 19.00
Common equity tier 1 risk-based
21.07 19.00
Tier 1 risk-based
22.14 20.22
Total risk-based
Astoria Financial Corporation:
10.61% 10.06
Tier 1 leverage
17.58 16.03
Common equity tier 1 risk-based
19.09 17.42
Tier 1 risk-based
20.17 18.63
Total risk-based
Other Data
----------
Cash dividends paid per common share $0.04 $0.04 $0.12 $0.12
Book value per common share 15.57 15.06
Tangible book value per common share 13.74 13.22
Tangible common stockholders' equity/tangible assets (2) (5) 9.52% 8.93%
Mortgage loans serviced for others (in thousands) $1,357,570 $1,412,873
Full time equivalent employees 1,383 1,555
(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
nine months ended September 30, 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 September 30, 2016 At June 30, 2016 At September 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 $5,403,477 3.40% $5,537,322 3.37% $6,165,489 3.32%
Multi-family and commercial real estate 4,839,325 3.60 4,898,430 3.62 4,722,761 3.69
Mortgage-backed and other securities (3) 3,059,406 2.62 3,034,277 2.65 2,645,087 2.72
Interest-bearing liabilities:
NOW and demand deposit 2,478,959 0.03 2,463,702 0.03 2,273,670 0.03
Money market 2,719,547 0.27 2,674,935 0.27 2,523,575 0.26
Savings 2,079,553 0.05 2,104,975 0.05 2,151,262 0.05
--------- --------- ---------
Total core deposits 7,278,059 0.13 7,243,612 0.12 6,948,507 0.12
Certificates of deposit 1,649,585 0.98 1,707,518 0.98 2,099,954 1.15
--------- --------- ---------
Total deposits 8,927,644 0.29 8,951,130 0.28 9,048,461 0.36
Borrowings, net 3,814,620 2.45 4,018,487 2.38 4,006,089 2.34
(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.
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 Nine Months Ended
-------------------------
September 30, 2015
------------------
GAAP Adjustment (1) Non-GAAP
---- ------------- --------
Income
before
income
tax
expense $89,904 $ - $89,904
Income
tax
expense 20,260 11,404 31,664
------ ------ ------
Net
income 69,644 (11,404) 58,240
Preferred
stock
dividends 6,582 - 6,582
----- --- -----
Net
income
available
to
common
shareholders $63,062 $(11,404) $51,658
======= ======== =======
Basic
and
diluted
earnings
per
common
share $0.63 $(0.12) $0.51
===== ====== =====
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-third-quarter-earnings-per-common-share-of-016-300352005.html
SOURCE Astoria Financial Corporation
