ASTORIA FINANCIAL CORP LAKE SUCCESS, N.Y., Jan. 27, 2016 /PRNewswire/ -- Astoria Financial Corporation (NYSE: AF) ("Astoria", or the "Company"), the holding company for Astoria Bank (the "Bank") today reported net income available to common shareholders of $16.2 million, or $0.16 diluted earnings per common share ("diluted EPS"), for the quarter ended December 31, 2015, compared to $21.1 million, or $0.21 diluted EPS, for the quarter ended December 31, 2014. Included in the 2014 fourth quarter results is $4.2 million ($0.04 per common share) of tax benefits recognized primarily related to the resolution of a tax matter with New York State and the related impact of changes in New York State tax legislation which was signed into law on March 31, 2014 and became effective January 1, 2015. For the year ended December 31, 2015, net income available to common shareholders totaled $79.3 million, or $0.79 diluted EPS compared to $87.1 million, or $0.88 diluted EPS, for 2014. Included in the 2015 full year results is a reduction in income tax expense of $11.4 million ($0.12 per common share) related to the impact of income tax legislation enacted in the second quarter of 2015, primarily applicable to New York City. Included in the 2014 full year results was a reduction in income tax expense of $11.5 million ($0.12 per common share) related to the impact of the previously discussed New York State income tax legislation as well as the previously discussed $4.2 million of tax benefits.
Monte N. Redman, President and Chief Executive Officer of Astoria, commenting on the 2015 results stated, "While we are disappointed by the lack of net growth in our loan portfolio, we are pleased with the continued growth that we have seen in core deposits and business deposits, as well as the further expansion we have experienced in our net interest margin."
"For the full year 2015, core deposits grew by approximately $302 million, $163 million of that growth coming in the fourth quarter, and now represent 78% of total deposits, up from 72% at year end 2014. Contributing to this improvement was the growth that we experienced in business deposits, growing by approximately $35 million in the fourth quarter and approximately $120 million, or 13% for the year. At December 31, 2015, business deposits totaled $1.05 billion."
"In addition, we continue to be encouraged with the expansion of our net interest margin in a less than ideal interest rate environment. In the fourth quarter of 2015 our margin was up 2 basis points to 2.39% from 2.37% in the prior quarter and up 4 basis points for the year to 2.36% from 2.32% in 2014."
Board Declares Quarterly Cash Dividend of $0.04 Per Share
The Board of Directors of the Company, at its January 27, 2016 meeting, declared a quarterly cash dividend of $0.04 per common share. The dividend is payable on March 1, 2016 to shareholders of record as of February 12, 2016. This is the eighty-third consecutive quarterly cash dividend declared by the Company.
Fourth Quarter and Full Year Earnings Summary
Net interest income for the quarter ended December 31, 2015 totaled $84.7 million unchanged from the previous quarter and up from $83.9 million for the 2014 fourth quarter. The net interest margin for the quarter ended December 31, 2015 was 2.39%, compared to 2.37% for the previous quarter and 2.30% for the 2014 fourth quarter. For the year ended December 31, 2015, net interest income totaled $340.3 million, compared to $342.3 million for 2014, and the net interest margin was 2.36% for the year ended December 31, 2015, up from 2.32% for the year ended December 31, 2014.
For the quarter ended December 31, 2015, a $4.3 million loan loss release was recorded compared to a $4.4 million release in the prior quarter and a $2.3 million release in the 2014 fourth quarter. For the year ended December 31, 2015, we recorded a loan loss release of $12.1 million compared to a $9.5 million loan loss release for 2014. Mr. Redman stated, "The loan loss release recorded in the fourth quarter is a reflection of our overall strong credit metrics and the continued contraction in the overall portfolio."
Non-interest income for the quarter ended December 31, 2015 totaled $13.5 million, compared to $12.9 million for the previous quarter and $13.6 million for the 2014 fourth quarter. The increase from the prior quarter was primarily due to an increase in mortgage banking income, net and more specifically, a recovery of MSR valuation in the most recent period compared to a provision for MSR valuation in the previous quarter. Non-interest income for the year ended December 31, 2015 totaled $54.6 million compared to $54.8 million for 2014.
General and administrative ("G&A") expense for the quarter ended December 31, 2015 totaled $74.5 million compared to $72.6 million for the previous quarter and $70.2 million for the 2014 fourth quarter. For the year ended December 31, 2015, G&A expense totaled $289.1 million, up from $284.4 million for the 2014 comparable period. Mr. Redman commented, "Our G&A in the fourth quarter was impacted by approximately $4 million of merger related expenses."
Balance Sheet Summary
Total assets at December 31, 2015 were $15.1 billion, a decrease of $563.8 million from December 31, 2014. The decrease was primarily due to a decline in the loan portfolio which decreased $804.4 million from December 31, 2014, and totaled $11.2 billion at December 31, 2015, partially offset by an increase in the securities portfolio of $195.4 million over the same period.
The MF/CRE mortgage loan portfolio totaled $4.8 billion at December 31, 2015, an increase of $56.8 million from December 31, 2014 and represents 44% of the total loan portfolio. For the quarter and year ended December 31, 2015, MF/CRE loan originations totaled $300.4 million and $890.7 million, respectively, compared to $388.0 million and $1.2 billion, for the 2014 comparable periods. The MF/CRE loan production for the 2015 fourth quarter and year ended December 31, 2015 were originated with weighted average loan-to-value ratios of approximately 38% and 45%, respectively, and weighted average debt coverage ratios of approximately 1.42 and 1.49, respectively. MF/CRE loan prepayments for the quarter and year ended December 31, 2015 totaled $156.8 million and $689.4 million, respectively, compared to $105.9 million and $375.7 million for the comparable 2014 periods. The pipeline at December 31, 2015 was $392.5 million.
The residential mortgage loan portfolio totaled $6.0 billion at December 31, 2015, compared to $6.9 billion at December 31, 2014. For the quarter and year ended December 31, 2015, residential loan originations for portfolio totaled $102.9 million and $616.9 million, respectively, compared to $129.1 million and $455.9 million for the 2014 comparable periods. The weighted average loan-to-value ratio of the residential loan production for portfolio at origination was approximately 60% and 61% for the quarter and year ended December 31, 2015, respectively. Residential loan prepayments for the quarter and year ended December 31, 2015 totaled $243.9 million and $1.2 billion, respectively, compared to $265.1 million and $1.1 billion for the comparable 2014 periods. At December 31, 2015, the residential mortgage pipeline totaled approximately $161.3 million.
Deposits totaled $9.1 billion at December 31, 2015, a decrease of $398.9 million from December 31, 2014. This decrease was primarily due to a decrease in higher cost certificates of deposit, partially offset by net increases in lower cost core deposits, particularly consumer and business checking deposits. At December 31, 2015, core deposits totaled $7.1 billion with a weighted average rate of 12 basis points, and represent 78% of total deposits.
Stockholders' equity totaled $1.66 billion, or 11.03% of total assets at December 31, 2015, an increase of $83.4 million from December 31, 2014. Astoria's capital levels continue to exceed the minimum levels required to be designated as "well-capitalized" for bank regulatory purposes. At December 31, 2015, Tier 1 leverage, Common Equity Tier 1 risk based, Tier 1 risk-based and Total risk-based capital ratios were 11.29%, 19.12%, 19.12% and 20.25%, respectively for Astoria Bank, and 10.21%, 16.00%, 17.37% and 18.51%, respectively for Astoria Financial Corporation. At December 31, 2015, Astoria Financial Corporation's tangible common equity ratio was 9.06%.
Asset Quality
Non-performing loans ("NPLs"), totaled $138.2 million, or 1.24% of total loans, at December 31, 2015, compared to $127.8 million, or 1.07% of total loans, at December 31, 2014. Included in the NPLs at December 31, 2015 is $54.3 million of loans which are current or less than 90 days past due compared to $65.0 million at December 31, 2014. Total delinquent loans and NPLs at December 31, 2015 were $243.7 million compared to $227.7 million at December 31, 2014. Net charge-offs for the quarter ended December 31, 2015 totaled $1.2 million compared to net recoveries of $439,000 in the previous quarter and net recoveries of $316,000 in the 2014 fourth quarter. Net charge-offs for the year ended December 31, 2015 totaled $1.5 million compared to net charge-offs of $17.9 million for the 2014 full year. Other real estate owned declined to $19.8 million at December 31, 2015, compared to $35.7 million at December 31, 2014.
Future Outlook
Commenting on the Company's future outlook, Mr. Redman stated, "As was previously announced on October 29, 2015, we entered into a definitive agreement to merge with New York Community Bancorp ("NYCB"). We are very pleased that we are planning to merge with such a strong partner and, once the deal is closed, look forward to working with NYCB to continue to serve the communities which have come to rely on us for the past 127 years."
About Astoria Financial Corporation
Astoria Financial Corporation, with assets of $15.1 billion, is the holding company for Astoria Bank. Established in 1888, Astoria Bank, with deposits in New York totaling $9.1 billion, is the second largest thrift depository in New York and provides its retail and business customers and local communities it serves with quality financial products and services through 88 convenient banking branch locations, a business banking office in Manhattan, and multiple delivery channels, including its flexible mobile banking app. Astoria Bank commands a significant deposit market share in the attractive Long Island market, which includes Brooklyn, Queens, Nassau, and Suffolk counties with a population exceeding that of 38 individual states. Astoria Bank originates multi-family and commercial real estate loans, primarily on rent controlled and rent stabilized apartment buildings, located in New York City and the surrounding metropolitan area and originates residential mortgage loans through its banking and loan production offices in New York, a broker network in four states, primarily along the East Coast, and correspondent relationships covering 13 states and the District of Columbia.
Forward Looking Statements
This press release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would," and similar terms and phrases, including references to assumptions.
Forward-looking statements are based on various assumptions and analyses made by us in light of our management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events that may be subject to circumstances beyond our control; increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment; changes in deposit flows, loan demand or collateral values; changes in accounting principles, policies or guidelines; changes in general economic conditions, either nationally or locally in some or all areas in which we do business, or conditions in the real estate or securities markets or the banking industry; legislative or regulatory changes, including the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, and any actions regarding foreclosures; enhanced supervision and examination by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; effects of changes in existing U.S. government or government-sponsored mortgage programs; our ability to successfully implement technological changes; our ability to successfully consummate new business initiatives; litigation or other matters before regulatory agencies, whether currently existing or commencing in the future; or our ability to implement enhanced risk management policies, procedures and controls commensurate with shifts in our business strategies and regulatory expectations. We have no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
This communication contains certain forward-looking information about NYCB, Astoria, and the combined company after the close of the transaction that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of NYCB, Astoria and the combined company. Forward-looking statements speak only as of the date they are made and we assume no duty to update such statements. We caution readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. In addition to factors previously disclosed in reports filed by NYCB and Astoria with the SEC, risks and uncertainties for each institution and the combined institution include, but are not limited to: lower than expected revenues; credit quality deterioration or a reduction in real estate values could cause an increase in the allowance for credit losses and a reduction in net earnings; enhanced supervision and examination by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; increases in competitive pressure among financial institutions or from non-financial institutions; effects of changes in existing U.S. government or government-sponsored mortgage programs; the ability to complete the proposed transaction, including obtaining regulatory approvals and approval by the stockholders of Astoria or NYCB, or any future transaction, successfully integrate NYCB's and Astoria's integration plan, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected time-frames or at all; regulatory approvals may not be received on expected timeframes or at all; the possibility that personnel changes will not proceed as planned; the possibility that the cost of additional capital may be more than expected; the possibility that a change in the interest rate environment may reduce net interest margins; asset/liability re-pricing risks and liquidity risks; pending legal matters may take longer or cost more to resolve or may be resolved adversely; general economic conditions, either nationally or in the market areas in which the entities operate or anticipate doing business, are less favorable than expected; and environmental conditions, including natural disasters, may disrupt business, impede operations, or negatively affect the values of collateral securing loans.
Additional Information About the Proposed Transaction and Where to Find It
This communication is being made in respect of the proposed merger transaction involving NYCB and Astoria. NYCB has filed a registration statement on Form S-4 with the SEC, which will include a joint proxy statement of Astoria and NYCB and a prospectus of NYCB, and each party will file other documents regarding the proposed transaction with the SEC. A definitive joint proxy statement/prospectus will also be sent to the Astoria and NYCB stockholders seeking any required stockholder approvals. Before making any voting or investment decision, investors and security holders of Astoria and NYCB are urged to carefully read the entire registration statement and joint proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. The documents filed by NYCB and Astoria with the SEC may be obtained free of charge at the SEC's website at www.sec.gov. In addition, the documents filed by NYCB may be obtained free of charge at NYCB's website at http://ir.mynycb.com/ and the documents filed by Astoria may be obtained free of charge at Astoria's website at http://ir.astoriabank.com/. Alternatively, these documents, when available, can be obtained free of charge from NYCB upon written request to New York Community Bancorp, Inc., Attn: Corporate Secretary, 615 Merrick Avenue, Westbury, New York 11590 or by calling (516) 683-4100 or from Astoria upon written request to Astoria Financial Corporation, Attn: Investor Relations, One Astoria Bank Plaza, Lake Success, New York 11042 or by calling (516) 327-3000.
NYCB, Astoria, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from NYCB's and Astoria's stockholders in favor of the approval of the merger. Information about the directors and executive officers of NYCB and their ownership of NYCB common stock is set forth in the proxy statement for NYCB's 2015 annual meeting of stockholders, as previously filed with the SEC on April 24, 2015. Information about the directors and executive officers of Astoria and their ownership of Astoria common stock is set forth in the proxy statement for Astoria's 2015 annual meeting of stockholders, as previously filed with the SEC on April 17, 2015. Stockholders may obtain additional information regarding the interests of such participants by reading the registration statement and the proxy statement/prospectus when they become available.
Tables Follow
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
----------------------------------------------
(In Thousands, Except Share Data)
(Unaudited)
At December 31, At December 31,
2015 2014
ASSETS
------
Cash and due from banks $200,538 $143,185
Securities available-for-sale 416,798 384,359
Securities held-to-maturity
(fair value of $2,286,092 and $2,131,371, respectively) 2,296,799 2,133,804
Federal Home Loan Bank of New York stock, at cost 131,137 140,754
Loans held-for-sale, net 8,960 7,640
Loans receivable:
Mortgage loans, net 10,899,776 11,707,785
Consumer and other loans, net 253,305 249,663
11,153,081 11,957,448
Allowance for loan losses (98,000) (111,600)
Total loans receivable, net 11,055,081 11,845,848
Mortgage servicing rights, net 11,014 11,401
Accrued interest receivable 34,996 36,628
Premises and equipment, net 109,758 111,622
Goodwill 185,151 185,151
Bank owned life insurance 439,646 430,768
Real estate owned, net 19,798 35,723
Other assets 166,535 173,138
TOTAL ASSETS $15,076,211 $15,640,021
LIABILITIES
-----------
Deposits $9,106,027 $9,504,909
Federal funds purchased 435,000 455,000
Reverse repurchase agreements 1,100,000 1,100,000
Federal Home Loan Bank of New York advances 2,180,000 2,384,000
Other borrowings, net 249,222 248,691
Mortgage escrow funds 115,435 115,400
Accrued expenses and other liabilities 227,079 251,951
TOTAL LIABILITIES 13,412,763 14,059,951
STOCKHOLDERS' EQUITY
--------------------
Preferred stock, $1.00 par value; 5,000,000 shares authorized:
Series C (150,000 shares authorized; and 135,000 shares
issued
and outstanding) 129,796 129,796
Common stock, $0.01 par value (200,000,000 shares authorized;
166,494,888 shares issued; and 100,721,358 and 99,940,399
shares
outstanding, respectively) 1,665 1,665
Additional paid-in capital 902,349 897,049
Retained earnings 2,045,391 1,992,833
Treasury stock (65,773,530 and 66,554,489 shares, at cost, respectively) (1,357,136) (1,375,322)
Accumulated other comprehensive loss (58,617) (65,951)
TOTAL STOCKHOLDERS' EQUITY 1,663,448 1,580,070
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $15,076,211 $15,640,021
=========== ===========
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
---------------------------------------------
(In Thousands, Except Share Data)
For the Three Months For the Twelve Months
Ended Ended
December 31, December 31,
------------ ------------
2015 2014 2015 2014
Interest income:
Residential mortgage loans $48,714 $55,901 $203,950 $241,417
Multi-family and commercial real estate
mortgage loans 47,561 46,365 191,643 178,795
Consumer and other loans 2,230 2,204 8,870 8,532
Mortgage-backed and other securities 16,630 14,744 62,754 57,065
Interest-earning cash accounts 113 89 418 321
Federal Home Loan Bank of New York stock 1,391 1,443 5,781 6,220
Total interest income 116,639 120,746 473,416 492,350
Interest expense:
Deposits 8,093 12,499 37,343 51,355
Borrowings 23,862 24,323 95,784 98,707
Total interest expense 31,955 36,822 133,127 150,062
Net interest income 84,684 83,924 340,289 342,288
Provision for loan losses credited to operations (4,323) (2,316) (12,072) (9,469)
Net interest income after provision for loan losses 89,007 86,240 352,361 351,757
Non-interest income:
Customer service fees 7,429 8,477 32,833 35,710
Other loan fees 541 647 2,284 2,493
Gain on sales of securities - - 72 141
Mortgage banking income, net 1,687 664 4,222 3,326
Income from bank owned life insurance 2,280 2,198 8,878 8,476
Other 1,532 1,595 6,307 4,702
Total non-interest income 13,469 13,581 54,596 54,848
Non-interest expense:
General and administrative:
Compensation and benefits 40,632 36,183 152,924 138,177
Occupancy, equipment and systems 19,201 17,933 76,801 71,948
Federal deposit insurance premium 3,722 3,775 16,421 26,179
Advertising 2,203 3,277 10,052 12,450
Other 8,748 9,075 32,885 35,656
----- ----- ------ ------
Total non-interest expense 74,506 70,243 289,083 284,410
------
Income before income tax expense 27,970 29,578 117,874 122,195
Income tax expense 9,539 6,319 29,799 26,279
----- ----- ------ ------
Net income 18,431 23,259 88,075 95,916
Preferred stock dividends 2,193 2,193 8,775 8,775
----- ----- ----- -----
Net income available to common shareholders $16,238 $21,066 $79,300 $87,141
Basic earnings per common share $0.16 $0.21 $0.79 $0.88
Diluted earnings per common share $0.16 $0.21 $0.79 $0.88
Basic weighted average common shares outstanding 99,825,387 98,695,344 99,612,473 98,384,443
Diluted weighted average common shares outstanding 100,155,944 98,695,344 99,969,838 98,384,443
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Three Months Ended December 31,
2015 2014
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
(Annualized) (Annualized)
Assets:
Interest-earning assets:
Mortgage loans (1):
Residential $6,171,474 $48,714 3.16% $7,025,076 $55,901 3.18%
Multi-family and commercial real estate 4,770,535 47,561 3.99 4,656,150 46,365 3.98
Consumer and other loans (1) 253,177 2,230 3.52 247,896 2,204 3.56
------- ----- ------- -----
Total loans 11,195,186 98,505 3.52 11,929,122 104,470 3.50
Mortgage-backed and other
securities (2) 2,681,389 16,630 2.48 2,400,023 14,744 2.46
Interest-earning cash accounts 167,837 113 0.27 121,297 89 0.29
Federal Home Loan Bank stock 121,211 1,391 4.59 131,276 1,443 4.40
------- ----- ------- -----
Total interest-earning assets 14,165,623 116,639 3.29 14,581,718 120,746 3.31
------- -------
Goodwill 185,151 185,151
Other non-interest-earning assets 753,487 693,567
------- -------
Total assets $15,104,261 $15,460,436
Liabilities and stockholders' equity:
Interest-bearing liabilities:
NOW and demand deposit $2,316,122 197 0.03 $2,172,157 184 0.03
Money market 2,546,099 1,697 0.27 2,346,770 1,632 0.28
Savings 2,134,709 269 0.05 2,253,841 284 0.05
--------- --- --------- ---
Total core deposits 6,996,930 2,163 0.12 6,772,768 2,100 0.12
Certificates of deposit 2,046,763 5,930 1.16 2,782,441 10,399 1.49
--------- ----- --------- ------
Total deposits 9,043,693 8,093 0.36 9,555,209 12,499 0.52
Borrowings 3,962,702 23,862 2.41 3,944,452 24,323 2.47
--------- ------ --------- ------
Total interest-bearing liabilities 13,006,395 31,955 0.98 13,499,661 36,822 1.09
------ ------
Non-interest-bearing liabilities 445,118 366,078
------- -------
Total liabilities 13,451,513 13,865,739
Stockholders' equity 1,652,748 1,594,697
Total liabilities and stockholders' equity $15,104,261 $15,460,436
Net interest income/
net interest rate spread (3) $84,684 2.31% $83,924 2.22%
======= ==== ======= ====
Net interest-earning assets/
net interest margin (4) $1,159,228 2.39% $1,082,057 2.30%
========== ==== ========== ====
Ratio of interest-earning assets to
interest-bearing liabilities 1.09x 1.08x
===== =====
(1) Mortgage loans and consumer and other loans include loans held-for-sale and non-performing loans and exclude the allowance for
loan losses.
(2) Securities available-for-sale are included at average amortized cost.
(3) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of
average interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
AVERAGE BALANCE SHEETS
----------------------
(Dollars in Thousands)
For the Twelve Months Ended December 31,
2015 2014
Average Average
Average Yield/ Average Yield/
Balance Interest Cost Balance Interest Cost
Assets:
Interest-earning assets:
Mortgage loans (1):
Residential $6,481,319 $203,950 3.15% $7,509,317 $241,417 3.21%
Multi-family and commercial real estate 4,800,044 191,643 3.99 4,401,493 178,795 4.06
Consumer and other loans (1) 251,181 8,870 3.53 241,556 8,532 3.53
------- ----- ------- -----
Total loans 11,532,544 404,463 3.51 12,152,366 428,744 3.53
Mortgage-backed and other
securities (2) 2,586,882 62,754 2.43 2,342,486 57,065 2.44
Interest-earning cash accounts 148,359 418 0.28 107,977 321 0.30
Federal Home Loan Bank stock 134,434 5,781 4.30 142,782 6,220 4.36
------- ----- ------- -----
Total interest-earning assets 14,402,219 473,416 3.29 14,745,611 492,350 3.34
------- -------
Goodwill 185,151 185,151
Other non-interest-earning assets 732,611 682,583
------- -------
Total assets $15,319,981 $15,613,345
Liabilities and stockholders' equity:
Interest-bearing liabilities:
NOW and demand deposit $2,270,980 778 0.03 $2,134,277 706 0.03
Money market 2,459,170 6,496 0.26 2,187,718 5,527 0.25
Savings 2,186,704 1,093 0.05 2,364,679 1,182 0.05
--------- ----- --------- -----
Total core deposits 6,916,854 8,367 0.12 6,686,674 7,415 0.11
Certificates of deposit 2,282,038 28,976 1.27 2,959,631 43,940 1.48
--------- ------ --------- ------
Total deposits 9,198,892 37,343 0.41 9,646,305 51,355 0.53
Borrowings 4,081,488 95,784 2.35 4,058,192 98,707 2.43
--------- ------ --------- ------
Total interest-bearing liabilities 13,280,380 133,127 1.00 13,704,497 150,062 1.09
------- -------
Non-interest-bearing liabilities 417,480 341,246
------- -------
Total liabilities 13,697,860 14,045,743
Stockholders' equity 1,622,121 1,567,602
Total liabilities and stockholders' equity $15,319,981 $15,613,345
Net interest income/
net interest rate spread (3) $340,289 2.29% $342,288 2.25%
======== ==== ======== ====
Net interest-earning assets/
net interest margin (4) $1,121,839 2.36% $1,041,114 2.32%
========== ==== ========== ====
Ratio of interest-earning assets to
interest-bearing liabilities 1.08x 1.08x
===== =====
(1) Mortgage loans and consumer and other loans include loans held-for-sale and non-performing loans and exclude the allowance
for loan
losses.
(2) Securities available-for-sale are included at average amortized cost.
(3) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of
average interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average interest-earning assets.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
SELECTED FINANCIAL RATIOS AND OTHER DATA
----------------------------------------
For the At or For the
Three Months Ended Twelve Months Ended
December 31, December 31,
------------
2015 2014 2015 2014
---- ---- ---- ----
Selected Returns and Financial Ratios (Annualized)
-------------------------------------
Return on average common stockholders' equity (1) 4.26% 5.75% 5.31% 6.06%
Return on average tangible common stockholders' equity (1)
(2) 4.85 6.58 6.07 6.96
Return on average assets (1) 0.49 0.60 0.57 0.61
General and administrative expense to average assets 1.97 1.82 1.89 1.82
Efficiency ratio (3) 75.91 72.04 73.21 71.62
Net interest rate spread 2.31 2.22 2.29 2.25
Net interest margin 2.39 2.30 2.36 2.32
Selected Non-GAAP Returns and Financial Ratios (4)
-------------------------------------------------
Non-GAAP return on average common stockholders' equity (1) 4.26% 4.60% 4.55% 4.97%
Non-GAAP return on average tangible common stockholders'
equity (1) (2) 4.85 5.26 5.19 5.70
Non-GAAP return on average assets (1) 0.49 0.49 0.50 0.51
Asset Quality Data (dollars in thousands)
----------------------------------------
Non-performing loans:
Current $43,870 $57,088
30-59 days delinquent 8,222 5,429
60-89 days delinquent 2,170 2,461
90 days or more delinquent 83,954 62,834
------ ------
Non-performing loans 138,216 127,812
Real estate owned 19,798 35,723
Non-performing assets $158,014 $163,535
Net loan charge-offs (recoveries) $1,177 $(316) $1,528 $17,931
Non-performing loans/total loans 1.24% 1.07%
Non-performing loans/total assets 0.92 0.82
Non-performing assets/total assets 1.05 1.05
Allowance for loan losses/non-performing loans 70.90 87.32
Allowance for loan losses/total loans 0.88 0.93
Net loan charge-offs (recoveries) to average loans outstanding 0.04% (0.01)% 0.01 0.15
Regulatory Capital Ratios (5)
----------------------------
Astoria Bank:
Tier 1 leverage 11.29% 10.62%
Common equity tier 1 risk-based 19.12 N/A
Tier 1 risk-based 19.12 17.55
Total risk-based 20.25 18.76
Astoria Financial Corporation:
Tier 1 leverage 10.21% N/A
Common equity tier 1 risk-based 16.00 N/A
Tier 1 risk-based 17.37 N/A
Total risk-based 18.51 N/A
Other Data
----------
Cash dividends paid per common share $0.04 $0.04 $0.16 $0.16
Book value per common share 15.23 14.51
Tangible book value per common share 13.39 12.66
Tangible common stockholders' equity/tangible assets (2) (6) 9.06% 8.19%
Mortgage loans serviced for others (in thousands) $1,404,480 $1,452,645
Full time equivalent employees 1,551 1,594
(1) Returns on
average
common
stockholders'
equity and
average
tangible
common
stockholders'
equity are
calculated
using net
income
available to
common
shareholders.
Returns on
average
assets are
calculated
using net
income.
(2) Tangible
common
stockholders'
equity
represents
common
stockholders'
equity less
goodwill.
(3) Efficiency
ratio
represents
general and
administrative
expense
divided by
the sum of
net interest
income plus
non-interest
income.
(4) See the
"Reconciliation
of GAAP
Measures to
Non-GAAP
Measures"
table
included in
this release
for a
reconciliation
of GAAP
measures to
non-GAAP
measures for
the three and
twelve months
ended
December 31,
2015 and
2014.
(5) The regulatory
capital
ratios
presented as
of December
31, 2015
represent
calculations
under the
Basel III
guidelines,
which became
effective for
Astoria Bank
and Astoria
Financial
Corporation
on January 1,
2015 and the
Dodd-Frank
Act. The
regulatory
capital
ratios
presented as
of December
31, 2014 were
calculated
under rules
effective at
that time.
Prior to
2015, Astoria
Financial
Corporation
was not
subject to
regulatory
capital
requirements.
(6) Tangible
assets
represent
assets less
goodwill.
ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES
END OF PERIOD BALANCES AND RATES
--------------------------------
(Dollars in Thousands)
At December 31, 2015 At September 30, 2015 At December 31, 2014
-------------------- --------------------- --------------------
Weighted Weighted Weighted
Average Average Average
Balance Rate (1) Balance Rate (1) Balance Rate (1)
------- ------- ------- ------- ------- -------
Selected interest-earning assets:
Mortgage loans, gross (2):
Residential $5,941,914 3.33% $6,165,489 3.32% $6,828,547 3.35%
Multi-family and commercial real estate 4,832,847 3.67 4,722,761 3.69 4,765,201 3.79
Mortgage-backed and other securities (3) 2,713,597 2.74 2,645,087 2.72 2,518,163 2.80
Interest-bearing liabilities:
NOW and demand deposit 2,413,823 0.03 2,273,670 0.03 2,198,777 0.04
Money market 2,560,204 0.26 2,523,575 0.26 2,373,484 0.24
Savings 2,137,818 0.05 2,151,262 0.05 2,237,142 0.05
--------- --------- ---------
Total core deposits 7,111,845 0.12 6,948,507 0.12 6,809,403 0.11
Certificates of deposit 1,994,182 1.16 2,099,954 1.15 2,695,506 1.47
--------- --------- ---------
Total deposits 9,106,027 0.35 9,048,461 0.36 9,504,909 0.50
Borrowings, net 3,964,222 2.40 4,006,089 2.34 4,187,691 2.26
(1) Weighted average rates represent stated or coupon interest rates excluding the effect of yield adjustments for premiums,
discounts and deferred loan origination fees and costs and the impact of prepayment penalties.
(2) Mortgage loans exclude loans held-for-sale and non-performing loans, except non-performing residential mortgage
loans which are current or less than 90 days past due.
(3) Securities available-for-sale are reported at fair value and securities held-to-maturity are reported at amortized cost.
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
--------------------------
December 31, 2015 December 31, 2014
----------------- -----------------
GAAP Adjustment Non-GAAP GAAP Adjustment (2) Non-GAAP
---- ---------- -------- ---- ------------- --------
Net interest income $84,684 $ - $84,684 $83,924 $ - $83,924
Provision for loan losses credited to operations (4,323) - (4,323) (2,316) - (2,316)
------ --- ------ ------ --- ------
Net interest income after provision for loan losses 89,007 - 89,007 86,240 - 86,240
Non-interest income 13,469 - 13,469 13,581 - 13,581
Non-interest expense (general and administrative expense) 74,506 - 74,506 70,243 - 70,243
------ --- ------ ------ --- ------
Income before income tax expense 27,970 - 27,970 29,578 - 29,578
Income tax expense 9,539 - 9,539 6,319 4,222 10,541
----- --- ----- ----- ----- ------
Net income 18,431 - 18,431 23,259 (4,222) 19,037
Preferred stock dividends 2,193 - 2,193 2,193 - 2,193
----- --- ----- ----- --- -----
Net income available to common shareholders $16,238 $ - $16,238 $21,066 $(4,222) $16,844
======= === === ======= ======= ======= =======
Basic and diluted earnings per common share $0.16 $ - $0.16 $0.21 $(0.04) $0.17
===== === === ===== ===== ====== =====
For the Twelve Months Ended
---------------------------
December 31, 2015 December 31, 2014
----------------- -----------------
GAAP Adjustment (1) Non-GAAP GAAP Adjustment (2) Non-GAAP
---- ------------- -------- ---- ------------- --------
Net interest income $340,289 $ - $340,289 $342,288 $ - $342,288
Provision for loan losses credited to operations (12,072) - (12,072) (9,469) - (9,469)
------- --- ------- ------ --- ------
Net interest income after provision for loan losses 352,361 - 352,361 351,757 - 351,757
Non-interest income 54,596 - 54,596 54,848 - 54,848
Non-interest expense (general and administrative expense) 289,083 - 289,083 284,410 - 284,410
------- --- ------- ------- --- -------
Income before income tax expense 117,874 - 117,874 122,195 - 122,195
Income tax expense 29,799 11,404 41,203 26,279 15,709 41,988
------ ------ ------ ------ ------ ------
Net income 88,075 (11,404) 76,671 95,916 (15,709) 80,207
Preferred stock dividends 8,775 - 8,775 8,775 - 8,775
----- --- ----- ----- --- -----
Net income available to common shareholders $79,300 $(11,404) $67,896 $87,141 $(15,709) $71,432
======= ======== ======= ======= ======== =======
Basic earnings per common share $0.79 $(0.11) $0.68 $0.88 $(0.16) $0.72
===== ====== ===== ===== ====== =====
Diluted earnings per common share $0.79 $(0.12) $0.67 $0.88 $(0.16) $0.72
===== ====== ===== ===== ====== =====
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 the New York City income tax legislation enacted on April 13, 2015, which, in accordance with GAAP, 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.
(2) The adjustment represents the effects of the New York State income tax legislation enacted on March 31, 2014, which, in accordance with GAAP, 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 and adjustments in the
2014 fourth quarter includes the effects of the 2014 fourth quarter resolution of an income tax matter with New York State.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/astoria-financial-corporation-reports-2015-fourth-quarter-and-full-year-earnings-per-common-share-of-016-and-079-respectively-300210926.html
SOURCE Astoria Financial Corporation
