Astoria Financial Corporation Announces First Quarter EPS of $0.38

LAKE SUCCESS, N.Y., April 19 /PRNewswire-FirstCall/ -- Astoria Financial Corporation ("Astoria", the "Company"), the holding company for Astoria Federal Savings and Loan Association ("Astoria Federal"), today reported net income of $35.8 million, or $0.38 diluted earnings per share ("EPS"), for the quarter ended March 31, 2007, compared to $48.9 million, or $0.49 EPS, for the 2006 first quarter.

For the quarter ended March 31, 2007, returns on average equity, average tangible equity and average assets were 11.81%, 13.93% and 0.67%, respectively, compared to 14.77%, 17.17% and 0.88%, respectively, for the comparable 2006 period.

2007 First Quarter Financial Highlights: * Deposits increased $198 million, or 6% annualized * Loan portfolio increased $124 million, or 3% annualized * One-to-four family loan portfolio increased $156 million, or 6% annualized * Securities portfolio decreased $252 million, or 19% annualized * Borrowings decreased $440 million, or 26% annualized * Repurchased 1.0 million shares

Commenting on the first quarter results, George L. Engelke, Jr., Chairman, President and Chief Executive Officer of Astoria, noted, "While the operating environment remained difficult during the first quarter, characterized by an inverted yield curve and limited opportunities for profitable asset growth, we continued to increase loans and deposits and reduce securities and borrowings, resulting in an improvement in the quality of both the balance sheet and earnings."

Board Declares Quarterly Cash Dividend of $0.26 Per Share

The Board of Directors of the Company, at their April 18, 2007 meeting, declared a quarterly cash dividend of $0.26 per common share. The dividend is payable on June 1, 2007 to shareholders of record as of May 15, 2007. This is the forty-eighth consecutive quarterly cash dividend declared by the Company.

Eleventh Stock Repurchase Program Continues; Twelfth Stock Repurchase Program Authorized

During the 2007 first quarter, Astoria repurchased 1.0 million shares of its common stock at an average cost of $28.35 per share. Under the current stock repurchase program, 867,300 shares of the 10 million shares authorized remain available for repurchase.

Astoria also announced that the Board of Directors of the Company, at their April 18, 2007 meeting, approved its twelfth stock repurchase program which authorizes the purchase of ten million shares, or approximately 10% of its outstanding common stock, in open-market or privately negotiated transactions. Mr. Engelke commented, "The authorization of this new stock repurchase program provides us with continued flexibility in capital management and demonstrates our ongoing commitment to enhancing shareholder value." The newly approved stock repurchase program will commence immediately upon completion of the current program.

First Quarter 2007 Earnings Summary

Net interest income for the quarter ended March 31, 2007 totaled $87.5 million compared to $86.9 million for the 2006 fourth quarter and $111.5 million for the 2006 first quarter.

Astoria's net interest margin for the quarter ended March 31, 2007 increased two basis points on a linked quarter basis and declined thirty-nine basis points from the comparable period a year ago to 1.71%. The linked quarter increase was due primarily to the impact of two less days of interest expense in the 2007 first quarter, or approximately eight basis points, partially offset by the 2006 fourth quarter margin benefit of four basis points attributable to a $2.0 million prepayment penalty from a single CRE loan. The year over year decline in the net interest margin was primarily due to the cost of liabilities rising more rapidly than the yield on earning assets.

Non-interest income for the quarter ended March 31, 2007 totaled $22.6 million compared to $18.9 million for the 2006 first quarter. The increase is due primarily to a $5.5 million, pre-tax, charge incurred in the 2006 first quarter for the termination of interest rate swap agreements, partially offset by lower customer service fees and mortgage banking income, net, in the 2007 first quarter.

The components of mortgage banking income, net, which is included in non- interest income, are detailed below:

(Dollars in millions) 1Q07 1Q06 Loan servicing fees $1.0 $1.2 Amortization of MSR* (0.9) (1.0) MSR* valuation adjustments 0.1 0.7 Net gain on sale of loans 0.4 0.6 Mortgage banking income, net $0.6 $1.5 * Mortgage servicing rights

General and administrative expense ("G&A") for the quarter ended March 31, 2007 totaled $57.1 million compared to $57.0 million for the 2006 fourth quarter and $56.3 million for the 2006 first quarter. The year over year increase is due primarily to a 2.7% increase in compensation and benefits expense.

Balance Sheet Summary

For the 2007 first quarter, total loans increased $124.0 million to $15.1 billion at March 31, 2007. Total loan production for the 2007 first quarter was $896.0 million compared to $750.4 million for the comparable 2006 period. The loan pipeline at March 31, 2007 totaled $1.4 billion, an increase of $332 million from December 31, 2006.

For the 2007 first quarter, the one-to-four family mortgage loan portfolio increased $156.2 million, or 6% annualized, and totaled $10.4 billion at March 31, 2007. One-to-four family loan originations and purchases totaled $760.0 million for the 2007 first quarter compared to $522.0 million in the year-ago first quarter. Of the 2007 first quarter production, 73% consisted of 3/1 and 5/1 hybrid adjustable rate mortgage loans.

For the 2007 first quarter, the multi-family and CRE loan portfolio increased slightly and totaled $4.1 billion at March 31, 2007. Multi- family/CRE loan originations totaled $134.0 million for the 2007 first quarter compared to $217.4 million for the comparable 2006 period. The average loan- to-value ("LTV") ratio of the combined multi-family and CRE loan portfolio continues to be less than 65%, based on current principal balance and original appraised value, and the average loan balance is less than $1 million.

At March 31, 2007, non-performing loans totaled $67.9 million, or 0.32% of total assets, compared to $59.4 million, or 0.28% of total assets, at December 31, 2006. Net loan recoveries for the quarter ended March 31, 2007 totaled $155,000 compared to net loan recoveries of $12,000 for the 2006 fourth quarter. The increase in non-performing loans was due primarily to a $7.2 million increase in one-to-four family non-performing loans. As of March 31, 2007, one-to-four family non-performing loans totaled $48.4 million and multi- family/CRE non-performing loans totaled $17.7 million. The ratio of the allowance for loan losses to non-performing loans at March 31, 2007 was 118%.

Deposits increased $198.0 million for the 2007 first quarter, or 6% on an annualized basis, and total $13.4 billion at March 31, 2007.

Due to the continued yield curve inversion and lower spread availability, we continued to reduce non-core business activities during the 2007 first quarter. Total securities declined $252.0 million, or 19% annualized, to $5.1 billion, representing 24% of total assets at March 31, 2007. Borrowings declined in the 2007 first quarter by $439.8 million, or 26% annualized, to $6.4 billion, representing 30% of total assets at March 31, 2007. Total assets declined $160.7 million from December 31, 2006 to $21.4 billion at March 31, 2007.

Key balance sheet highlights, reflecting the improvement in the quality of the Company's balance sheet since December 31, 1999, follow:

% Change (Dollars in 12/31/99- millions) 12/31/99 12/31/01 12/31/03 12/31/05 12/31/06 3/31/07 3/31/07 Assets $22,700 $22,672 $22,462 $22,380 $21,555 $21,394 . 6% Loans $10,286 $12,167 $12,687 $14,392 $14,972 $15,096 + 47% Securities $10,763 $8,013 $8,448 $6,572 $5,340 $5,088 . 53% Deposits $9,555 $10,904 $11,187 $12,810 $13,224 $13,422 + 40% Borrowings $11,528 $9,826 $9,632 $7,938 $6,836 $6,396 . 45%

The following table illustrates this improvement on an outstanding per share basis:

Amount per % share 12/31/99 12/31/01 12/31/03 12/31/05 12/31/06 3/31/07 Change CAGR Loans $66.28 $89.36 $107.51 $137.11 $152.44 $154.86 134% 12% Deposits $61.57 $ 80.09 $ 94.80 $122.04 $134.65 $137.69 124% 12%

Stockholders' equity was $1.2 billion, or 5.69% of total assets, at March 31, 2007. Astoria Federal continues to maintain capital ratios in excess of regulatory requirements with core, tangible and risk-based capital ratios of 6.88%, 6.88% and 12.66%, respectively, at March 31, 2007.

Future Outlook

Commenting on the outlook for 2007, Mr. Engelke stated, "The interest rate environment continues to remain very challenging, characterized by a prolonged inversion of the yield curve. We continue to expect a gradual flattening of the yield curve to occur during the latter half of 2007 and into 2008 and a relatively stable net interest margin for 2007, similar to the adjusted 2007 first quarter margin, or approximately 1.63%. We will, therefore, maintain our strategy of reducing the securities portfolio while we emphasize deposit and loan growth, all of which will continue to improve the quality of both the balance sheet and earnings. We will also focus on the repurchase of our stock as a very desirable use of capital, maintaining the Company's tangible capital levels at or near 4.75%. This strategy should better position us to take advantage of more profitable asset growth opportunities when the yield curve steepens."

Astoria Financial Corporation, the holding company for Astoria Federal Savings and Loan Association, with assets of $21.4 billion is the sixth largest thrift institution in the United States. Established in 1888, Astoria Federal is the largest thrift depository headquartered in New York with deposits of $13.4 billion and embraces its philosophy of "Putting people first" by providing the customers and local communities it serves with quality financial products and services through 86 convenient banking office locations and multiple delivery channels, including its enhanced website, http://www.astoriafederal.com/. Astoria Federal commands the fourth largest deposit market share in the attractive Long Island market, which includes Brooklyn, Queens, Nassau, and Suffolk counties with a population exceeding that of 38 individual states. Astoria Federal originates mortgage loans through its banking offices and loan production offices in New York, an extensive broker network covering twenty-six states, primarily the East Coast, and the District of Columbia, and through correspondent relationships covering forty-three states and the District of Columbia.

Earnings Conference Call April 19, 2007 at 3:30 p.m. (ET)

The Company, as previously announced, indicated that Mr. Engelke will host an earnings conference call Thursday afternoon, April 19, 2007 at 3:30 p.m. (ET). The toll-free dial-in number is (800) 967-7140.

A telephone replay will be available on April 19, 2007 from 7:00 p.m. (ET) through April 27, 2007, 11:59 p.m. (ET). The replay number is (888) 203-1112, passcode: 8144008. The conference call will also be simultaneously webcast on the Company's website http://www.astoriafederal.com/ and archived for one year.

Forward Looking Statements

This document contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "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 its perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond our control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non- occurrence of events may be subject to circumstances beyond our control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins or affect the value of our investments; changes in deposit flows, loan demand or real estate values may adversely affect our business; changes in accounting principles, policies or guidelines may cause our financial condition to be perceived differently; general economic conditions, either nationally or locally in some or all of the areas in which we do business, or conditions in the securities markets or the banking industry may be less favorable than we currently anticipate; legislative or regulatory changes may adversely affect our business; applicable technological changes may be more difficult or expensive than we anticipate; success or consummation of new business initiatives may be more difficult or expensive than we anticipate; or litigation or matters before regulatory agencies, whether currently existing or commencing in the future, may be determined adverse to us or may delay the occurrence or non-occurrence of events longer than we anticipate. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document.

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In Thousands, Except Share Data) At At March 31, December 31, 2007 2006 ASSETS Cash and due from banks $140,809 $134,016 Repurchase agreements 23,187 71,694 Securities available-for-sale 1,494,791 1,560,325 Securities held-to-maturity (fair value of $3,516,966 and $3,681,514, respectively) 3,592,936 3,779,356 Federal Home Loan Bank of New York stock, at cost 147,625 153,640 Loans held-for-sale, net 26,549 16,542 Loans receivable: Mortgage loans, net 14,679,590 14,532,503 Consumer and other loans, net 416,114 439,188 15,095,704 14,971,691 Allowance for loan losses (80,097) (79,942) Total loans receivable, net 15,015,607 14,891,749 Mortgage servicing rights, net 15,434 15,944 Accrued interest receivable 77,556 78,761 Premises and equipment, net 144,216 145,231 Goodwill 185,151 185,151 Bank owned life insurance 389,646 385,952 Other assets 140,360 136,158 TOTAL ASSETS $21,393,867 $21,554,519 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $13,422,006 $13,224,024 Reverse repurchase agreements 4,180,000 4,480,000 Federal Home Loan Bank of New York advances 1,800,000 1,940,000 Other borrowings, net 416,172 416,002 Mortgage escrow funds 172,988 132,080 Accrued expenses and other liabilities 185,027 146,659 TOTAL LIABILITIES 20,176,193 20,338,765 Stockholders' equity: Preferred stock, $1.00 par value; (5,000,000 shares authorized; none issued and outstanding) - - Common stock, $.01 par value; (200,000,000 shares authorized; 166,494,888 shares issued; and 97,477,001 and 98,211,827 shares outstanding, respectively) 1,665 1,665 Additional paid-in capital 834,514 828,940 Retained earnings 1,867,104 1,856,528 Treasury stock (69,017,887 and 68,283,061 shares, at cost, respectively) (1,413,433) (1,390,495) Accumulated other comprehensive loss (49,956) (58,330) Unallocated common stock held by ESOP (6,064,835 and 6,155,918 shares, respectively) (22,220) (22,554) TOTAL STOCKHOLDERS' EQUITY 1,217,674 1,215,754 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $21,393,867 $21,554,519 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Share Data) For the Three Months Ended March 31, 2007 2006 Interest income: Mortgage loans: One-to-four family $136,516 $124,885 Multi-family, commercial real estate and construction 64,670 62,259 Consumer and other loans 8,194 8,847 Mortgage-backed and other securities 59,015 71,895 Federal funds sold and repurchase agreements 976 1,643 Federal Home Loan Bank of New York stock 2,598 1,689 Total interest income 271,969 271,218 Interest expense: Deposits 110,358 82,705 Borrowings 74,084 76,967 Total interest expense 184,442 159,672 Net interest income 87,527 111,546 Provision for loan losses - - Net interest income after provision for loan losses 87,527 111,546 Non-interest income: Customer service fees 15,169 16,598 Other loan fees 1,218 810 Mortgage banking income, net 616 1,482 Income from bank owned life insurance 4,203 4,075 Other 1,391 (4,068) Total non-interest income 22,597 18,897 Non-interest expense: General and administrative: Compensation and benefits 31,124 30,311 Occupancy, equipment and systems 16,521 16,808 Federal deposit insurance premiums 407 434 Advertising 1,915 1,927 Other 7,153 6,829 Total non-interest expense 57,120 56,309 Income before income tax expense 53,004 74,134 Income tax expense 17,227 25,200 Net income $35,777 $48,934 Basic earnings per common share $0.39 $0.50 Diluted earnings per common share $0.38 $0.49 Basic weighted average common shares 91,423,546 97,306,058 Diluted weighted average common and common equivalent shares 93,565,256 99,899,188 ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES SELECTED FINANCIAL RATIOS AND OTHER DATA At or For the Three Months Ended March 31, 2007 2006 Selected Returns and Financial Ratios (annualized) Return on average stockholders' equity 11.81 % 14.77 % Return on average tangible stockholders' equity (1) 13.93 17.17 Return on average assets 0.67 0.88 General and administrative expense to average assets 1.07 1.01 Efficiency ratio (2) 51.87 43.17 Net interest rate spread (3) 1.60 2.01 Net interest margin (4) 1.71 2.10 Selected Non-GAAP Returns and Financial Ratios (annualized) (5) Non-GAAP return on average stockholders' equity 11.81 % 15.86 % Non-GAAP return on average tangible stockholders' equity (1) 13.93 18.44 Non-GAAP return on average assets 0.67 0.95 Non-GAAP efficiency ratio (2) 51.87 41.43 Asset Quality Data (dollars in thousands) Non-performing loans/total loans 0.45 % 0.34 % Non-performing loans/total assets 0.32 0.23 Non-performing assets/total assets 0.32 0.23 Allowance for loan losses/non-performing loans 117.90 162.13 Allowance for loan losses/non-accrual loans 118.72 162.47 Allowance for loan losses/total loans 0.53 0.56 Net charge-offs to average loans outstanding (annualized) 0.00 0.00 Non-performing assets $68,397 $51,250 Non-performing loans 67,939 50,048 Loans 90 days past maturity but still accruing interest 473 104 Non-accrual loans 67,466 49,944 Net (recoveries) charge-offs (155) 16 Capital Ratios (Astoria Federal) Tangible 6.88 % 6.19 % Core 6.88 6.19 Risk-based 12.66 11.75 Other Data Cash dividends paid per common share $0.26 $0.24 Dividend payout ratio 68.42 % 48.98 % Book value per share (6) $13.32 $13.57 Tangible book value per share (7) $11.30 $11.65 Tangible stockholders' equity/tangible assets (1) (8) 4.87 % 5.10 % Mortgage loans serviced for others (in thousands) $1,334,523 $1,464,700 Full time equivalent employees 1,612 1,631 (1) Tangible stockholders' equity represents stockholders' equity less goodwill. (2) The efficiency ratio represents general and administrative expense divided by the sum of net interest income plus non-interest income. (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. (5) The information presented for 2006 represents pro forma calculations which are not in conformity with U.S. generally accepted accounting principles, or GAAP. The 2006 information excludes the $3.6 million, after tax, ($5.5 million, before tax) charge for the termination of our interest rate swap agreements recorded in the 2006 first quarter. See page 10 for a reconciliation of GAAP net income to non-GAAP earnings for the three months ended March 31, 2006. (6) Book value per share represents stockholders' equity divided by outstanding shares, excluding unallocated Employee Stock Ownership Plan, or ESOP, shares. (7) Tangible book value per share represents stockholders' equity less goodwill divided by outstanding shares, excluding unallocated ESOP shares. (8) Tangible assets represent assets less goodwill. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES AVERAGE BALANCE SHEETS (Dollars in Thousands) For the Three Months Ended March 31, 2007 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $10,386,038 $136,516 5.26 % Multi-family, commercial real estate and construction 4,228,924 64,670 6.12 Consumer and other loans (1) 430,961 8,194 7.61 Total loans 15,045,923 209,380 5.57 Mortgage-backed and other securities (2) 5,230,750 59,015 4.51 Federal funds sold and repurchase agreements 74,480 976 5.24 Federal Home Loan Bank stock 148,670 2,598 6.99 Total interest-earning assets 20,499,823 271,969 5.31 Goodwill 185,151 Other non-interest-earning assets 759,771 Total assets $21,444,745 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,099,668 2,087 0.40 Money market 421,912 1,037 0.98 NOW and demand deposit 1,464,753 211 0.06 Liquid certificates of deposit 1,524,410 18,536 4.86 Total core deposits 5,510,743 21,871 1.59 Certificates of deposit 7,699,828 88,487 4.60 Total deposits 13,210,571 110,358 3.34 Borrowings 6,685,759 74,084 4.43 Total interest-bearing liabilities 19,896,330 184,442 3.71 Non-interest-bearing liabilities 336,204 Total liabilities 20,232,534 Stockholders' equity 1,212,211 Total liabilities and stockholders' equity $21,444,745 Net interest income/net interest rate spread $87,527 1.60 % Net interest-earning assets/net interest margin $603,493 1.71 % Ratio of interest-earning assets to interest-bearing liabilities 1.03x 2006 Average Average Yield/ Balance Interest Cost (Annualized) Assets: Interest-earning assets: Mortgage loans (1): One-to-four family $9,890,392 $124,885 5.05 % Multi-family, commercial real estate and construction 4,091,568 62,259 6.09 Consumer and other loans (1) 506,184 8,847 6.99 Total loans 14,488,144 195,991 5.41 Mortgage-backed and other securities (2) 6,428,383 71,895 4.47 Federal funds sold and repurchase agreements 150,950 1,643 4.35 Federal Home Loan Bank stock 138,804 1,689 4.87 Total interest-earning assets 21,206,281 271,218 5.12 Goodwill 185,151 Other non-interest-earning assets 807,781 Total assets $22,199,213 Liabilities and stockholders' equity: Interest-bearing liabilities: Savings $2,468,120 2,450 0.40 Money market 620,969 1,473 0.95 NOW and demand deposit 1,516,024 220 0.06 Liquid certificates of deposit 729,669 7,055 3.87 Total core deposits 5,334,782 11,198 0.84 Certificates of deposit 7,550,703 71,507 3.79 Total deposits 12,885,485 82,705 2.57 Borrowings 7,653,012 76,967 4.02 Total interest-bearing liabilities 20,538,497 159,672 3.11 Non-interest-bearing liabilities 335,757 Total liabilities 20,874,254 Stockholders' equity 1,324,959 Total liabilities and stockholders' equity $22,199,213 Net interest income/net interest rate spread $111,546 2.01 % Net interest-earning assets/net interest margin $667,784 2.10 % Ratio of interest-earning assets to interest-bearing liabilities 1.03x (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. ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES END OF PERIOD BALANCES AND RATES (Dollars in Thousands) At March 31, At December 31, At March 31, 2007 2006 2006 Weighted Weighted Weighted Average Average Average Balance Rate(1) Balance Rate(1) Balance Rate(1) Selected interest- earning assets: Mortgage loans, gross (2): One-to-four family $10,370,347 5.51% $10,214,146 5.48% $9,846,475 5.25% Multi-family, commercial real estate and construction 4,216,228 5.94 4,227,931 5.96 4,163,563 5.91 Mortgage-backed and other securities (3) 5,087,727 4.34 5,339,681 4.35 6,227,251 4.34 Interest-bearing liabilities: Savings 2,084,922 0.40 2,129,416 0.40 2,438,090 0.40 Money market 411,337 1.00 435,657 0.98 598,766 0.97 NOW and demand deposit 1,527,864 0.06 1,496,986 0.06 1,562,612 0.06 Liquid certifi- cates of deposit 1,624,660 4.93 1,447,462 4.88 843,131 4.09 Total core deposits 5,648,783 1.65 5,509,521 1.53 5,442,599 0.94 Certificates of deposit 7,773,223 4.71 7,714,503 4.62 7,546,339 3.92 Total deposits 13,422,006 3.42 13,224,024 3.33 12,988,938 2.67 Borrowings, net 6,396,172 4.47 6,836,002 4.45 7,594,475 4.13 (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 include non-performing loans. (3) Securities available-for-sale are reported at fair value and securities held-to-maturity are reported at amortized cost. RECONCILIATION OF 2006 GAAP NET INCOME TO NON-GAAP EARNINGS (In Thousands, Except Per Share Data) For the Three Months Ended March 31, 2006 GAAP Adjustments(4) Non-GAAP Net interest income after provision for loan losses $111,546 - $111,546 Non-interest income 18,897 5,456 24,353 Non-interest expense 56,309 - 56,309 Income before income tax expense 74,134 5,456 79,590 Income tax expense 25,200 1,855 27,055 Net income $48,934 $3,601 $52,535 Basic earnings per common share $0.50 $0.04 $0.54 Diluted earnings per common share $0.49 $0.04 $0.53 (4) Adjustments relate to the $5.5 million charge for the termination of our interest rate swap agreements and the related tax effects.