Astoria CEO Monte Redman said in July that he was "pleased with the positive progression in our asset/liability repositioning," and that "We expect that together, the growth and repositioning of the balance sheet coupled with improved operating efficiency should benefit the net interest margin and improve profitability throughout the remainder of the year."
That being said, Redman added that "with respect to the net interest margin, due to the impact of extending $500 million of borrowings in the 2012 second quarter and the additional short-term cost to carry the 5% Senior Notes until we extinguish our existing 5.75% Senior Notes, we now anticipate the net interest margin for the 2012 full year to be slightly lower than the 2011 fourth quarter margin of 2.20%."
"2012 continues to be the transitional year for us with continued quarterly earnings and balance sheet growth," he said.
Astoria's shares closed at $9.86 Monday, returning 19% year-to-date, following a 36% decline during 2011. The shares trade for 0.9 times tangible book value, according to Thomson Reuters Bank Insight, and for 15 times the consensus 2013 earnings estimate of 65 cents a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is 52 cents.Guggenheim Securities analyst David Darst said on Aug. 10 that Astoria's shares "will begin to trade closer to