| x      | Annual      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|--------|------------------------------------------------------------------------------------------------|
|   |                                                                                           |
|   | For the fiscal year      ended December      31, 2009                                          |

| o | Transition      Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934 |
|---|----------------------------------------------------------------------------------------------------|

| Delaware                                                            |   | 11-3170868                                   |
|---------------------------------------------------------------------|--------|----------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification Number) |

| One Astoria Federal Plaza, Lake Success, New      York |   | 11042           |   | (516) 327-3000                                                 |
|--------------------------------------------------------|--------|-----------------|--------|----------------------------------------------------------------|
| (Address      of principal executive offices)          |   | (Zip      code) |   | (Registrant’s      telephone number, including areacode) |

| Title of each class                         |   | Name of each exchange on which      registered |
|---------------------------------------------|--------|------------------------------------------------|
| Common      Stock, par value $.01 per share |   | New      York Stock Exchange                   |

| Large      accelerated filer x | Accelerated      filer o | Non-accelerated      filer o | Smaller      reporting company o |
|--------------------------------|--------------------------|------------------------------|----------------------------------|

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|          |                                                                                                                                      | Page   |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                                      |   |
| Part      I   |                                                                                                                                      |   |
|          |                                                                                                                                      |   |
| Item 1.       | Business                                                                                                                                  | 3      |
| Item 1A.      | Risk Factors                                                                                                                              | 35     |
| Item 1B.      | Unresolved Staff Comments                                                                                                                 | 40     |
| Item 2.       | Properties                                                                                                                                | 41     |
| Item 3.       | Legal Proceedings                                                                                                                         | 41     |
| Item 4.       | Submission of Matters to a Vote of Security      Holders                                                                                  | 42     |
|          |                                                                                                                                      |   |
| Part      II  |                                                                                                                                      |   |
|          |                                                                                                                                      |   |
| Item 5.       | Market for Astoria Financial Corporation's Common Equity,      Related Stockholder Matters and Issuer Purchases of Equity      Securities | 43     |
| Item 6.       | Selected Financial Data                                                                                                                   | 45     |
| Item 7.       | Management's Discussion and Analysis of Financial Condition and      Results of Operations                                                | 47     |
| Item 7A.      | Quantitative and Qualitative Disclosures about Market      Risk                                                                           | 88     |
| Item 8.       | Financial Statements and Supplementary Data                                                                                               | 91     |
| Item 9.       | Changes in and Disagreements with Accountants on Accounting and      Financial Disclosure                                                 | 91     |
| Item 9A.      | Controls and Procedures                                                                                                                   | 91     |
| Item 9B.      | Other Information                                                                                                                         | 92     |
|          |                                                                                                                                      |   |
| Part      III |                                                                                                                                      |   |
|          |                                                                                                                                      |   |
| Item 10.      | Directors, Executive Officers and Corporate      Governance                                                                               | 92     |
| Item 11.      | Executive Compensation                                                                                                                    | 93     |
| Item 12.      | Security Ownership of Certain Beneficial Owners and Management      and Related Stockholder Matters                                       | 93     |
| Item 13.      | Certain Relationships and Related Transactions, and Director      Independence                                                            | 93     |
| Item 14.      | Principal Accountant Fees and Services                                                                                                    | 93     |
|          |                                                                                                                                      |   |
| Part      IV  |                                                                                                                                      |   |
|          |                                                                                                                                      |   |
| Item 15.      | Exhibits and Financial Statement Schedules                                                                                                | 94     |
|          |                                                                                                                                      |   |
| SIGNATURES    | 95                                                                                                                                        |

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|   | ● | 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 perceiveddifferently; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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 may be less favorable than we currently      anticipate; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | legislative      or regulatory changes may adversely affect our  business; |
|--------|---------|----------------------------------------------------------------------------|

|   | ● | 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 other 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. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 1.  BUSINESS

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|                                   |   | At December      31, |       |
|----------------------------------------|--------|----------------------|------------|
|                                   |   | 2009                 |       |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                   |   |                 |       |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |
|                                   |   |                 |       |   | of |   |   |   |   |   | of |   |   |   |   |   | of |   |   |   |   |   | of |   |   |   |   |   | of |   |
| (Dollars      in Thousands)            |   | Amount               |       |   | Total |   |   | Amount |   |   | Total |   |   | Amount |   |   | Total |   |   | Amount |   |   | Total |   |   | Amount |   |   | Total |   |
| Mortgage loans      (gross):           |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family                |   | $                    | 11,895,362 |   |   |   | 75.88 | % |   | $ | 12,349,617 |   |   |   | 74.42 | % |   | $ | 11,628,270 |   |   |   | 72.51 | % |   | $ | 10,214,146 |   |   |   | 68.67 | % |   | $ | 9,757,920 |   |   |   | 68.24 | % |
| Multi-family                           |   |                 | 2,559,058  |   |   |   | 16.33 |   |   |   | 2,911,733 |   |   |   | 17.55 |   |   |   | 2,945,546 |   |   |   | 18.36 |   |   |   | 2,987,531 |   |   |   | 20.09 |   |   |   | 2,826,807 |   |   |   | 19.77 |   |
| Commercial real      estate            |   |                 | 866,804    |   |   |   | 5.53 |   |   |   | 941,057 |   |   |   | 5.67 |   |   |   | 1,031,812 |   |   |   | 6.43 |   |   |   | 1,100,218 |   |   |   | 7.40 |   |   |   | 1,075,914 |   |   |   | 7.52 |   |
| Construction                           |   |                 | 23,599     |   |   |   | 0.15 |   |   |   | 56,829 |   |   |   | 0.34 |   |   |   | 77,723 |   |   |   | 0.48 |   |   |   | 140,182 |   |   |   | 0.94 |   |   |   | 137,012 |   |   |   | 0.96 |   |
| Total mortgage      loans              |   |                 | 15,344,823 |   |   |   | 97.89 |   |   |   | 16,259,236 |   |   |   | 97.98 |   |   |   | 15,683,351 |   |   |   | 97.78 |   |   |   | 14,442,077 |   |   |   | 97.10 |   |   |   | 13,797,653 |   |   |   | 96.49 |   |
| Consumer and other loans      (gross): |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Home      equity                       |   |                 | 302,410    |   |   |   | 1.93 |   |   |   | 307,831 |   |   |   | 1.85 |   |   |   | 320,884 |   |   |   | 1.99 |   |   |   | 392,141 |   |   |   | 2.64 |   |   |   | 460,064 |   |   |   | 3.22 |   |
| Commercial                             |   |                 | 13,588     |   |   |   | 0.09 |   |   |   | 13,331 |   |   |   | 0.08 |   |   |   | 20,494 |   |   |   | 0.13 |   |   |   | 22,262 |   |   |   | 0.15 |   |   |   | 24,644 |   |   |   | 0.17 |   |
| Other                                  |   |                 | 14,020     |   |   |   | 0.09 |   |   |   | 14,216 |   |   |   | 0.09 |   |   |   | 15,443 |   |   |   | 0.10 |   |   |   | 16,387 |   |   |   | 0.11 |   |   |   | 17,796 |   |   |   | 0.12 |   |
| Total consumer and other      loans    |   |                 | 330,018    |   |   |   | 2.11 |   |   |   | 335,378 |   |   |   | 2.02 |   |   |   | 356,821 |   |   |   | 2.22 |   |   |   | 430,790 |   |   |   | 2.90 |   |   |   | 502,504 |   |   |   | 3.51 |   |
| Total loans      (gross)               |   |                 | 15,674,841 |   |   |   | 100.00 | % |   |   | 16,594,614 |   |   |   | 100.00 | % |   |   | 16,040,172 |   |   |   | 100.00 | % |   |   | 14,872,867 |   |   |   | 100.00 | % |   |   | 14,300,157 |   |   |   | 100.00 | % |
| Net unamortized      premiums          |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and deferred loan      costs           |   |                 | 105,881    |   |   |   |   |   |   |   | 117,830 |   |   |   |   |   |   |   | 114,842 |   |   |   |   |   |   |   | 98,824 |   |   |   |   |   |   |   | 92,136 |   |   |   |   |   |
| Total    loans                         |   |                 | 15,780,722 |   |   |   |   |   |   |   | 16,712,444 |   |   |   |   |   |   |   | 16,155,014 |   |   |   |   |   |   |   | 14,971,691 |   |   |   |   |   |   |   | 14,392,293 |   |   |   |   |   |
| Allowance for loan      losses         |   |                 | (194,049   | ) |   |   |   |   |   |   | (119,029 | ) |   |   |   |   |   |   | (78,946 | ) |   |   |   |   |   |   | (79,942 | ) |   |   |   |   |   |   | (81,159 | ) |   |   |   |   |
| Total loans,      net                  |   | $                    | 15,586,673 |   |   |   |   |   |   | $ | 16,593,415 |   |   |   |   |   |   | $ | 16,076,068 |   |   |   |   |   |   | $ | 14,891,749 |   |   |   |   |   |   | $ | 14,311,134 |   |   |   |   |   |

----

|                                                  |   | At      December 31, 2009 |       |
|-------------------------------------------------------|--------|---------------------------|------------|
|                                                  |   | One-to-                   |       |   |   |   |   |   |   |   |   |   |   | Consumer |   |   | Total |   |
|                                                  |   | Four                      |       |   | Multi- |   |   | Commercial |   |   |   |   |   | and |   |   | Loans |   |
| (In      Thousands)                                   |   | Family                    |       |   | Family |   |   | Real      Estate |   |   | Construction |   |   | Other |   |   | Receivable |   |
| Amount    due:                                        |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within one      year                                  |   | $                         | 20,097     |   |   | $ | 8,146 |   |   | $ | 2,115 |   |   | $ | 16,478 |   |   | $ | 12,084 |   |   | $ | 58,920 |   |
| After one      year:                                  |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Over one to      three years                          |   |                      | 23,469     |   |   |   | 53,456 |   |   |   | 27,127 |   |   |   | 7,121 |   |   |   | 11,373 |   |   |   | 122,546 |   |
| Over three to      five years                         |   |                      | 79,623     |   |   |   | 252,633 |   |   |   | 155,059 |   |   |   | - |   |   |   | 6,567 |   |   |   | 493,882 |   |
| Over five to ten      years                           |   |                      | 160,660    |   |   |   | 1,722,423 |   |   |   | 511,418 |   |   |   | - |   |   |   | 1,346 |   |   |   | 2,395,847 |   |
| Over ten to twenty      years                         |   |                      | 910,244    |   |   |   | 432,516 |   |   |   | 152,805 |   |   |   | - |   |   |   | 3,164 |   |   |   | 1,498,729 |   |
| Over twenty      years                                |   |                      | 10,701,269 |   |   |   | 89,884 |   |   |   | 18,280 |   |   |   | - |   |   |   | 295,484 |   |   |   | 11,104,917 |   |
| Total due after one      year                         |   |                      | 11,875,265 |   |   |   | 2,550,912 |   |   |   | 864,689 |   |   |   | 7,121 |   |   |   | 317,934 |   |   |   | 15,615,921 |   |
| Total amount      due                                 |   | $                         | 11,895,362 |   |   | $ | 2,559,058 |   |   | $ | 866,804 |   |   | $ | 23,599 |   |   | $ | 330,018 |   |   | $ | 15,674,841 |   |
| Net unamortized premiums and      deferred loan costs |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 105,881 |   |
| Allowance for loan      losses                        |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (194,049 | ) |
| Loans receivable,      net                            |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 15,586,673 |   |

|                          |   | Maturing After December 31,      2010 |      |
|-------------------------------|--------|---------------------------------------|-----------|
| (In      Thousands)           |   | Fixed                                 |      |   | Adjustable |   |   | Total |   |
| Mortgage      loans:          |   |                                  |      |   |   |   |   |   |   |
| One-to-four      family       |   | $                                     | 881,629   |   |   | $ | 10,993,636 |   |   | $ | 11,875,265 |   |
| Multi-family                  |   |                                  | 339,715   |   |   |   | 2,211,197 |   |   |   | 2,550,912 |   |
| Commercial real      estate   |   |                                  | 85,112    |   |   |   | 779,577 |   |   |   | 864,689 |   |
| Construction                  |   |                                  | -         |   |   |   | 7,121 |   |   |   | 7,121 |   |
| Consumer and other      loans |   |                                  | 7,958     |   |   |   | 309,976 |   |   |   | 317,934 |   |
| Total                         |   | $                                     | 1,314,414 |   |   | $ | 14,301,507 |   |   | $ | 15,615,921 |   |

----

|                                        |   | For      the Year Ended December 31, |       |
|---------------------------------------------|--------|--------------------------------------|------------|
| (In      Thousands)                         |   | 2009                                 |       |   | 2008 |   |   | 2007 |   |
| Mortgage      loans (gross) (1):            |   |                                 |       |   |   |   |   |   |   |
| At      beginning of year                   |   | $                                    | 16,264,133 |   |   | $ | 15,688,675 |   |   | $ | 14,457,975 |   |
| Originations:                               |   |                                 |       |   |   |   |   |   |   |   |   |   |
| One-to-four      family                     |   |                                 | 3,168,615  |   |   |   | 3,319,575 |   |   |   | 3,412,315 |   |
| Multi-family                                |   |                                 | 10,352     |   |   |   | 458,175 |   |   |   | 363,648 |   |
| Commercial      real estate                 |   |                                 | 1,135      |   |   |   | 55,984 |   |   |   | 46,777 |   |
| Construction                                |   |                                 | -          |   |   |   | - |   |   |   | 1,993 |   |
| Total      originations                     |   |                                 | 3,180,102  |   |   |   | 3,833,734 |   |   |   | 3,824,733 |   |
| Purchases      (2)                          |   |                                 | 390,297    |   |   |   | 479,051 |   |   |   | 407,316 |   |
| Principal      repayments                   |   |                                 | (3,824,444 | ) |   |   | (3,534,061 | ) |   |   | (2,786,822 | ) |
| Sales                                       |   |                                 | (442,817   | ) |   |   | (150,166 | ) |   |   | (224,428 | ) |
| Advances      on construction loans in      |   |                                 |       |   |   |   |   |   |   |   |   |   |
| excess      of originations                 |   |                                 | 6,190      |   |   |   | 14,640 |   |   |   | 23,558 |   |
| Transfer      of loans to real estate owned |   |                                 | (70,638    | ) |   |   | (39,877 | ) |   |   | (10,749 | ) |
| Net      loans charged off                  |   |                                 | (123,014   | ) |   |   | (27,863 | ) |   |   | (2,908 | ) |
| At      end of year                         |   | $                                    | 15,379,809 |   |   | $ | 16,264,133 |   |   | $ | 15,688,675 |   |
| Consumer      and other loans (gross) (3):  |   |                                 |       |   |   |   |   |   |   |   |   |   |
| At      beginning of year                   |   | $                                    | 335,756    |   |   | $ | 357,814 |   |   | $ | 431,466 |   |
| Originations      and advances              |   |                                 | 110,415    |   |   |   | 138,901 |   |   |   | 153,715 |   |
| Principal      repayments                   |   |                                 | (113,774   | ) |   |   | (157,752 | ) |   |   | (225,536 | ) |
| Sales                                       |   |                                 | -          |   |   |   | (2,153 | ) |   |   | (1,243 | ) |
| Net      loans charged off                  |   |                                 | (1,966     | ) |   |   | (1,054 | ) |   |   | (588 | ) |
| At      end of year                         |   | $                                    | 330,431    |   |   | $ | 335,756 |   |   | $ | 357,814 |   |

| (1) | Includes      loans classified as held-for-sale totaling $35.0 million, $4.9 million and      $5.3 million at December 31, 2009, 2008 and 2007, respectively, exclusive      of a $1.1 million valuation allowance at December 31,  2009. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Purchases      of mortgage loans represent third party loan originations and are secured      by one-to-four family properties. |
|-----|---------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      loans classified as held-for-sale totaling $413,000, $378,000      and  $993,000 at December 31, 2009, 2008 and 2007,      respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                         |   | At December      31, |      |
|----------------------------------------------|--------|----------------------|-----------|
|                                         |   | 2009                 |      |   | 2008 |   |   | 2007 |   |
|                                         |   |                 |      |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |
| (Dollars in      Thousands)                  |   | Amount               |      |   | of Total |   |   | Amount |   |   | of Total |   |   | Amount |   |   | of Total |   |
| Securities      available-for-sale:          |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      securities: |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE issuance REMICs and      CMOs            |   | $                    | 796,240   |   |   |   | 92.52 | % |   | $ | 1,319,176 |   |   |   | 94.88 | % |   | $ | 1,138,139 |   |   |   | 86.67 | % |
| Non-GSE issuance REMICs and      CMOs        |   |                 | 26,269    |   |   |   | 3.05 |   |   |   | 29,440 |   |   |   | 2.12 |   |   |   | 38,381 |   |   |   | 2.92 |   |
| GSE pass-through      certificates           |   |                 | 34,375    |   |   |   | 3.99 |   |   |   | 40,666 |   |   |   | 2.92 |   |   |   | 53,202 |   |   |   | 4.05 |   |
| Freddie Mac preferred      stock             |   |                 | 3,784     |   |   |   | 0.44 |   |   |   | 1,132 |   |   |   | 0.08 |   |   |   | 82,996 |   |   |   | 6.32 |   |
| Other      securities                        |   |                 | 26        |   |   |   | - |   |   |   | 26 |   |   |   | - |   |   |   | 588 |   |   |   | 0.04 |   |
| Total securities      available-for-sale     |   | $                    | 860,694   |   |   |   | 100.00 | % |   | $ | 1,390,440 |   |   |   | 100.00 | % |   | $ | 1,313,306 |   |   |   | 100.00 | % |
| Securities      held-to-maturity:            |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      securities: |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE issuance REMICs and      CMOs            |   | $                    | 1,979,296 |   |   |   | 85.38 | % |   | $ | 2,451,155 |   |   |   | 92.61 | % |   | $ | 2,822,089 |   |   |   | 92.30 | % |
| Non-GSE issuance REMICs and      CMOs        |   |                 | 82,014    |   |   |   | 3.54 |   |   |   | 188,473 |   |   |   | 7.12 |   |   |   | 227,278 |   |   |   | 7.43 |   |
| GSE pass-through      certificates           |   |                 | 1,097     |   |   |   | 0.05 |   |   |   | 1,558 |   |   |   | 0.06 |   |   |   | 2,108 |   |   |   | 0.07 |   |
| Obligations of U.S. government      and GSEs |   |                 | 250,955   |   |   |   | 10.83 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Obligations of states and      political     |   |                 |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| subdivisions                                 |   |                 | 4,523     |   |   |   | 0.20 |   |   |   | 5,676 |   |   |   | 0.21 |   |   |   | 6,069 |   |   |   | 0.20 |   |
| Total securities      held-to-maturity       |   | $                    | 2,317,885 |   |   |   | 100.00 | % |   | $ | 2,646,862 |   |   |   | 100.00 | % |   | $ | 3,057,544 |   |   |   | 100.00 | % |

|                                                  |   | Within      One Year |   |   | One      to Five Years |   |   | Five      to Ten Years |   |   | Over      Ten Years |   |   | Total      Securities |   |
|-------------------------------------------------------|--------|----------------------|--------|--------|------------------------|--------|--------|------------------------|--------|--------|---------------------|--------|--------|-----------------------|--------|
|                                                  |   |                 |   |   | Weighted               |   |   |                   |   |   | Weighted            |   |   |                  |   |   | Weighted |   |   |   |   |   | Weighted |   |   |   |   |   | Estimated |   |   | Weighted |   |
|                                                  |   | Amortized            |   |   | Average                |   |   | Amortized              |   |   | Average             |   |   | Amortized             |   |   | Average |   |   | Amortized |   |   | Average |   |   | Amortized |   |   | Fair |   |   | Average |   |
| (Dollars      in Thousands)                           |   | Cost                 |   |   | Yield                  |   |   | Cost                   |   |   | Yield               |   |   | Cost                  |   |   | Yield |   |   | Cost |   |   | Yield |   |   | Cost |   |   | Value |   |   | Yield |   |
| Repurchase      agreements                            |   | $                    | 40,030 |   |                   |   | 0.02   | %                      |   | $      | -                   |   |   |                  | -      | % |   | $ | - |   |   |   | - | % |   | $ | - |   |   |   | - | % |   | $ | 40,030 |   |   | $ | 40,030 |   |   |   | 0.02 | % |
| FHLB-NY      stock (1)(2)                             |   | $                    | -      |   |                   |   | -      | %                      |   | $      | -                   |   |   |                  | -      | % |   | $ | - |   |   |   | - | % |   | $ | 178,929 |   |   |   | 5.60 | % |   | $ | 178,929 |   |   | $ | 178,929 |   |   |   | 5.60 | % |
| Securities      available-for-sale:                   |   |                 |   |   |                   |   |   |                   |   |   |                |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REMICs      and CMOs:                                 |   |                 |   |   |                   |   |   |                   |   |   |                |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance                                     |   | $                    | -      |   |                   |   | -      | %                      |   | $      | -                   |   |   |                  | -      | % |   | $ | 58,974 |   |   |   | 4.22 | % |   | $ | 718,124 |   |   |   | 4.02 | % |   | $ | 777,098 |   |   | $ | 796,240 |   |   |   | 4.04 | % |
| Non-GSE      issuance                                 |   |                 | -      |   |                   |   | -      |                   |   |   | -                   |   |   |                  | -      |   |   |   | 26,663 |   |   |   | 3.32 |   |   |   | 502 |   |   |   | 2.91 |   |   |   | 27,165 |   |   |   | 26,269 |   |   |   | 3.31 |   |
| GSE      pass-through certificates                    |   |                 | -      |   |                   |   | -      |                   |   |   | 3,087               |   |   |                  | 6.49   |   |   |   | 4,817 |   |   |   | 6.57 |   |   |   | 25,537 |   |   |   | 3.40 |   |   |   | 33,441 |   |   |   | 34,375 |   |   |   | 4.14 |   |
| Freddie      Mac preferred stock      (1)(3)          |   |                 | -      |   |                   |   | -      |                   |   |   | -                   |   |   |                  | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,784 |   |   |   | - |   |
| Other      securities (1)(3)                          |   |                 | 25     |   |                   |   | 4.70   |                   |   |   | -                   |   |   |                  | -      |   |   |   | - |   |   |   | - |   |   |   | 15 |   |   |   | - |   |   |   | 40 |   |   |   | 26 |   |   |   | 2.94 |   |
| Total      securities available-for-sale              |   | $                    | 25     |   |                   |   | 4.70   | %                      |   | $      | 3,087               |   |   |                  | 6.49   | % |   | $ | 90,454 |   |   |   | 4.08 | % |   | $ | 744,178 |   |   |   | 4.00 | % |   | $ | 837,744 |   |   | $ | 860,694 |   |   |   | 4.02 | % |
| Securities      held-to-maturity:                     |   |                 |   |   |                   |   |   |                   |   |   |                |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| REMICs      and CMOs:                                 |   |                 |   |   |                   |   |   |                   |   |   |                |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance                                     |   | $                    | -      |   |                   |   | -      | %                      |   | $      | -                   |   |   |                  | -      | % |   | $ | 249,554 |   |   |   | 4.10 | % |   | $ | 1,729,742 |   |   |   | 4.29 | % |   | $ | 1,979,296 |   |   | $ | 2,029,683 |   |   |   | 4.27 | % |
| Non-GSE      issuance                                 |   |                 | -      |   |                   |   | -      |                   |   |   | -                   |   |   |                  | -      |   |   |   | 19,830 |   |   |   | 4.52 |   |   |   | 62,184 |   |   |   | 4.36 |   |   |   | 82,014 |   |   |   | 79,833 |   |   |   | 4.40 |   |
| GSE      pass-through certificates                    |   |                 | 3      |   |                   |   | 10.03  |                   |   |   | 551                 |   |   |                  | 6.23   |   |   |   | 495 |   |   |   | 8.54 |   |   |   | 48 |   |   |   | 9.53 |   |   |   | 1,097 |   |   |   | 1,163 |   |   |   | 7.43 |   |
| Obligations      of U.S. government and GSEs          |   |                 | -      |   |                   |   | -      |                   |   |   | 250,955             |   |   |                  | 2.54   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 250,955 |   |   |   | 252,318 |   |   |   | 2.54 |   |
| Obligations      of states and political subdivisions |   |                 | -      |   |                   |   | -      |                   |   |   | -                   |   |   |                  | -      |   |   |   | 4,523 |   |   |   | 6.50 |   |   |   | - |   |   |   | - |   |   |   | 4,523 |   |   |   | 4,523 |   |   |   | 6.50 |   |
| Total      securities held-to-maturity                |   | $                    | 3      |   |                   |   | 10.03  | %                      |   | $      | 251,506             |   |   |                  | 2.55   | % |   | $ | 274,402 |   |   |   | 4.18 | % |   | $ | 1,791,974 |   |   |   | 4.29 | % |   | $ | 2,317,885 |   |   | $ | 2,367,520 |   |   |   | 4.09 | % |

| (1) | Equity      securities have no stated maturities and are therefore classified in the      over ten years category. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (2) | The      carrying amount of FHLB-NY stock equals cost.  The weighted      average yield represents the 2009 fourth quarter annualized dividend rate      declared by the FHLB-NY in January2010. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      weighted average yield of Freddie Mac preferred stock and Fannie Mae      common stock, included in other securities, reflects the Federal Housing      Finance Agency decision to suspend dividend payments      indefinitely. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                             |   | Amortized |      |   | Estimated     |   |
|----------------------------------|--------|-----------|-----------|--------|---------------|--------|
| (In      Thousands)              |   | Cost      |      |   | Fair    Value |   |
| Freddie    Mac                   |   | $         | 1,599,643 |   |          | $      | 1,646,457 |   |
| Fannie    Mae                    |   |      | 987,793   |   |          |   | 1,012,611 |   |
| FHLB (1)                         |   |      | 278,887   |   |          |   | 279,328 |   |
|                             |   |      |      |   |          |   |   |   |
| (1) Includes FHLB-NY      stock. |   |      |      |   |          |   |   |   |

|                                |   | For the Year Ended December      31, |       |
|-------------------------------------|--------|--------------------------------------|------------|
| (Dollars in      Thousands)         |   | 2009                                 |       |   | 2008 |   |   | 2007 |   |
| Opening      balance                |   | $                                    | 13,479,924 |   |   | $ | 13,049,438 |   |   | $ | 13,224,024 |   |
| Net (withdrawals)      deposits     |   |                                 | (983,057   | ) |   |   | 36,589 |   |   |   | (630,625 | ) |
| Interest      credited              |   |                                 | 315,371    |   |   |   | 393,897 |   |   |   | 456,039 |   |
| Ending      balance                 |   | $                                    | 12,812,238 |   |   | $ | 13,479,924 |   |   | $ | 13,049,438 |   |
| Net (decrease)      increase        |   | $                                    | (667,686   | ) |   | $ | 430,486 |   |   | $ | (174,586 | ) |
| Percentage (decrease)      increase |   |                                 | (4.95      | )% |   |   | 3.30 | % |   |   | (1.32 | )% |

----

| (In      Thousands)       |   | Amount |      |
|---------------------------|--------|--------|-----------|
| Within three      months  |   | $      | 1,174,461 |   |
| Three to six      months  |   |   | 547,521   |   |
| Six to twelve      months |   |   | 523,743   |   |
| Over twelve      months   |   |   | 725,066   |   |
| Total                     |   | $      | 2,970,791 |   |

|                              |   | For      the Year Ended December 31, |       |
|-----------------------------------|--------|--------------------------------------|------------|
|                              |   | 2009                                 |       |   | 2008 |   |   | 2007 |   |
|                              |   |                                 |       |   |   |   |   | Weighted |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |   |   |   |   | Weighted |   |
|                              |   |                                 |       |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                              |   | Average                         |       |   | Percent |   |   | Nominal |   |   | Average  |   |   | Percent |   |   | Nominal  |   |   | Average  |   |   | Percent |   |   | Nominal |   |
| (Dollars in      Thousands)       |   | Balance                              |       |   | of Total |   |   | Rate |   |   | Balance |   |   | of Total |   |   | Rate |   |   | Balance |   |   | of Total |   |   | Rate |   |
| Savings                           |   | $                                    | 1,928,842  |   |   |   | 14.40 | % |   |   | 0.40 | % |   | $ | 1,863,622 |   |   |   | 14.26 | % |   |   | 0.40 | % |   | $ | 2,014,253 |   |   |   | 15.22 | % |   |   | 0.40 | % |
| Money    market                   |   |                                 | 317,168    |   |   |   | 2.37 |   |   |   | 0.66 |   |   |   | 311,910 |   |   |   | 2.39 |   |   |   | 1.02 |   |   |   | 379,634 |   |   |   | 2.87 |   |   |   | 0.99 |   |
| NOW                               |   |                                 | 934,313    |   |   |   | 6.98 |   |   |   | 0.11 |   |   |   | 874,862 |   |   |   | 6.70 |   |   |   | 0.15 |   |   |   | 863,679 |   |   |   | 6.53 |   |   |   | 0.11 |   |
| Non-interest bearing      NOW     |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and demand      deposit           |   |                                 | 599,818    |   |   |   | 4.48 |   |   |   | - |   |   |   | 595,540 |   |   |   | 4.56 |   |   |   | - |   |   |   | 601,784 |   |   |   | 4.55 |   |   |   | - |   |
| Liquid    CDs                     |   |                                 | 884,436    |   |   |   | 6.60 |   |   |   | 1.20 |   |   |   | 1,225,153 |   |   |   | 9.38 |   |   |   | 2.96 |   |   |   | 1,549,774 |   |   |   | 11.71 |   |   |   | 4.62 |   |
| Total                             |   |                                 | 4,664,577  |   |   |   | 34.83 |   |   |   | 0.46 |   |   |   | 4,871,087 |   |   |   | 37.29 |   |   |   | 0.99 |   |   |   | 5,409,124 |   |   |   | 40.88 |   |   |   | 1.56 |   |
| Certificates of deposit      (1): |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within one      year              |   |                                 | 2,967,210  |   |   |   | 22.15 |   |   |   | 2.58 |   |   |   | 2,674,913 |   |   |   | 20.47 |   |   |   | 3.69 |   |   |   | 2,064,884 |   |   |   | 15.60 |   |   |   | 4.72 |   |
| One to three      years           |   |                                 | 2,980,661  |   |   |   | 22.26 |   |   |   | 3.84 |   |   |   | 2,601,828 |   |   |   | 19.92 |   |   |   | 4.57 |   |   |   | 2,621,207 |   |   |   | 19.81 |   |   |   | 4.70 |   |
| Three to five      years          |   |                                 | 1,250,321  |   |   |   | 9.34 |   |   |   | 4.31 |   |   |   | 1,393,834 |   |   |   | 10.67 |   |   |   | 4.40 |   |   |   | 1,905,804 |   |   |   | 14.40 |   |   |   | 4.23 |   |
| Over five      years              |   |                                 | 13,955     |   |   |   | 0.10 |   |   |   | 4.22 |   |   |   | 17,262 |   |   |   | 0.13 |   |   |   | 4.25 |   |   |   | 14,306 |   |   |   | 0.11 |   |   |   | 4.19 |   |
| Jumbo                             |   |                                 | 1,516,433  |   |   |   | 11.32 |   |   |   | 2.86 |   |   |   | 1,504,277 |   |   |   | 11.52 |   |   |   | 3.87 |   |   |   | 1,217,566 |   |   |   | 9.20 |   |   |   | 4.90 |   |
| Total                             |   |                                 | 8,728,580  |   |   |   | 65.17 |   |   |   | 3.31 |   |   |   | 8,192,114 |   |   |   | 62.71 |   |   |   | 4.12 |   |   |   | 7,823,767 |   |   |   | 59.12 |   |   |   | 4.62 |   |
| Total      deposits               |   | $                                    | 13,393,157 |   |   |   | 100.00 | % |   |   | 2.32 | % |   | $ | 13,063,201 |   |   |   | 100.00 | % |   |   | 2.96 | % |   | $ | 13,232,891 |   |   |   | 100.00 | % |   |   | 3.37 | % |

|                             |   | Period to maturity from      December 31, 2009 |      |   | At December31, |   |
|----------------------------------|--------|------------------------------------------------|-----------|--------|----------------|--------|
|                             |   | Within                                         |      |   | One to    two  |   |   | Two to    three |   |   | Over    three |   |   |   |   |   |   |   |   |   |   |
| (In      Thousands)              |   | one year                                       |      |   | years          |   |   | years |   |   | years |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Certificates of deposit      and |   |                                           |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liquid    CDs:                   |   |                                           |      |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1.99% or      less               |   | $                                              | 2,687,568 |   |           | $      | 219,731 |   |   | $ | 20,303 |   |   | $ | 1,066 |   |   | $ | 2,928,668 |   |   | $ | 118,354 |   |   | $ | 87,525 |   |
| 2.00% to      2.99%              |   |                                           | 1,201,056 |   |           |   | 140,848 |   |   |   | 581,679 |   |   |   | 36,643 |   |   |   | 1,960,226 |   |   |   | 1,635,781 |   |   |   | 27,903 |   |
| 3.00% to      3.99%              |   |                                           | 1,384,683 |   |           |   | 343,562 |   |   |   | 157,149 |   |   |   | 285,473 |   |   |   | 2,170,867 |   |   |   | 4,518,092 |   |   |   | 829,228 |   |
| 4.00% to      4.99%              |   |                                           | 756,299   |   |           |   | 251,882 |   |   |   | 143,147 |   |   |   | 124,573 |   |   |   | 1,275,901 |   |   |   | 2,756,349 |   |   |   | 4,432,887 |   |
| 5.00% and      over              |   |                                           | 263,997   |   |           |   | 124,008 |   |   |   | 73,347 |   |   |   | 48 |   |   |   | 461,400 |   |   |   | 862,507 |   |   |   | 3,968,001 |   |
| Total                            |   | $                                              | 6,293,603 |   |           | $      | 1,080,031 |   |   | $ | 975,625 |   |   | $ | 447,803 |   |   | $ | 8,797,062 |   |   | $ | 9,891,083 |   |   | $ | 9,345,544 |   |

----

----

----

----

----

----

----

----

----

----

----

----

|   | • | Establishment      of anti-money laundering programs. |
|--------|---------|-------------------------------------------------------|

|   | • | Establishment      of a program specifying procedures for obtaining identifying information      from customers seeking to open new accounts, including verifying the      identity of customers within a reasonable period of  time. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Establishment      of enhanced due diligence policies, procedures and controls designed to      detect and report money laundering. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Prohibition      on correspondent accounts for foreign shell banks and compliance with      recordkeeping obligations with respect to correspondent accounts of      foreign banks. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

| ITEM 1A. | RISK      FACTORS |
|----------|-------------------|

----

----

----

----

|   | ● | The      enactment of the EESA in October 2008, which gave the U.S. Department of      the Treasury, or the Treasury, the authority to, among other things,      purchase up to $700 billion of troubled assets from financial      institutions; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The      announcements shortly thereafter by the Treasury, the FDIC and the FRB,      respectively, of (1) the Capital Purchase Program, or CPP, a $250 billion      voluntary capital purchase program under which qualifying financial      institutions were given the ability to sell preferred shares to the      Treasury, (2) the TLGP and (3) further details of the Commercial Paper      Funding Facility, or CPFF, which provides a broad backstop for the      commercial paper market; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The      announcement by the Treasury in February 2009 of the Capital Assistance      Program, or CAP, under which qualifying financial institutions were      provided access to contingent common equity provided by the U.S.      government as a bridge to private capital in the  future; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The      announcement by the federal banking regulators of the Supervisory Capital      Assessment Program, or the SCAP, under which the federal banking      regulators measured how much of an additional capital buffer, if any, each      of the nineteen largest U.S. bank holding companies would need to      establish to ensure that it would have sufficient capital to comfortably      exceed minimum regulatory requirements at December 31, 2010, as a      result of which many of the nineteen institutions underwent capital      raising or restructuring transactions to improve their capital base;      and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The      announcement by the Treasury in March 2009, in conjunction with the FDIC      and the FRB, of the Public-Private Investment Program, or PPIP, which      consists of two discrete components: (1) the Legacy Loan Program, which      was designed to facilitate the sale of commercial and residential whole      loans and other assets currently held by U.S. banks, and (2) the Legacy      Securities Program, which was designed to facilitate the sale of legacy      residential mortgage-backed securities and commercial mortgage-backed      securities initially rated AAA and currently held by financial      institutions, as defined under theEESA. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 1B. | UNRESOLVED      STAFF COMMENTS |
|----------|--------------------------------|

----

| ITEM 2.  | PROPERTIES |
|---------------|------------|

| ITEM 3. | LEGAL      PROCEEDINGS |
|---------|------------------------|

----

| ITEM 4. | SUBMISSION      OF MATTERS TO A VOTE OF SECURITYHOLDERS |
|---------|---------------------------------------------------------|

----

| ITEM 5. | MARKET      FOR ASTORIA FINANCIAL CORPORATION’S COMMON EQUITY, RELATED STOCKHOLDER      MATTERS AND ISSUER PURCHASES OF EQUITY  SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                |   | 2009   |   |   | 2008   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
|                |   | High   |   |   | Low    |   |   | High |   |   | Low |   |
| First      Quarter  |   | $      | 17.25  |   |   | $      | 5.85 |   |   | $ | 29.13 |   |   | $ | 19.75 |   |
| Second      Quarter |   |   | 10.82  |   |   |   | 6.62 |   |   |   | 29.26 |   |   |   | 20.00 |   |
| Third      Quarter  |   |   | 11.84  |   |   |   | 7.98 |   |   |   | 30.00 |   |   |   | 16.65 |   |
| Fourth      Quarter |   |   | 13.18  |   |   |   | 9.24 |   |   |   | 21.48 |   |   |   | 13.59 |   |

|                |   | 2009   |   |   | 2008   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| First      Quarter  |   | $      | 0.13   |   |   | $      | 0.26 |   |
| Second      Quarter |   |   | 0.13   |   |   |   | 0.26 |   |
| Third      Quarter  |   |   | 0.13   |   |   |   | 0.26 |   |
| Fourth      Quarter |   |   | 0.13   |   |   |   | 0.26 |   |

----

|                   | AFC Common      Stock         | S&P 500 Stock      Index  | S&P Midcap 400      Financials Index |
|------------------------|-------------------------------|-------------------------------|------------------------------------------|
| December      31, 2004 | $100.00                       | $100.00                       | $100.00                                  |
| December      31, 2005 |   113.58            |   104.91            |   110.02                       |
| December      31, 2006 |   120.26            |   121.48            |   127.48                       |
| December      31, 2007 |     96.49 |   128.16            |   111.25                       |
| December      31, 2008 |     71.79 |     80.74 |     81.57            |
| December      31, 2009 |     57.51 |    102.11      |     92.06            |

----

| ITEM 6. | SELECTED      FINANCIAL DATA |
|---------|------------------------------|

|                               |   | At December      31, |       |
|------------------------------------|--------|----------------------|------------|
| (In      Thousands)                |   | 2009                 |       |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Selected Financial      Data:      |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total    assets                    |   | $                    | 20,252,179 |   |   | $ | 21,982,111 |   |   | $ | 21,719,368 |   |   | $ | 21,554,519 |   |   | $ | 22,380,271 |   |
| Repurchase      agreements         |   |                 | 40,030     |   |   |   | 24,060 |   |   |   | 24,218 |   |   |   | 71,694 |   |   |   | 182,803 |   |
| Securities      available-for-sale |   |                 | 860,694    |   |   |   | 1,390,440 |   |   |   | 1,313,306 |   |   |   | 1,560,325 |   |   |   | 1,841,351 |   |
| Securities      held-to-maturity   |   |                 | 2,317,885  |   |   |   | 2,646,862 |   |   |   | 3,057,544 |   |   |   | 3,779,356 |   |   |   | 4,730,953 |   |
| Loans receivable,      net         |   |                 | 15,586,673 |   |   |   | 16,593,415 |   |   |   | 16,076,068 |   |   |   | 14,891,749 |   |   |   | 14,311,134 |   |
| Deposits                           |   |                 | 12,812,238 |   |   |   | 13,479,924 |   |   |   | 13,049,438 |   |   |   | 13,224,024 |   |   |   | 12,810,455 |   |
| Borrowings,      net               |   |                 | 5,877,834  |   |   |   | 6,965,274 |   |   |   | 7,184,658 |   |   |   | 6,836,002 |   |   |   | 7,937,526 |   |
| Stockholders'      equity          |   |                 | 1,208,614  |   |   |   | 1,181,769 |   |   |   | 1,211,344 |   |   |   | 1,215,754 |   |   |   | 1,350,227 |   |

|                                                     |   | For the Year Ended December      31, |    |
|----------------------------------------------------------|--------|--------------------------------------|---------|
| (In Thousands, Except Per Share      Data)               |   | 2009                                 |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Selected Operating      Data:                            |   |                                 |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      income                                     |   | $                                    | 997,541 |   |   | $ | 1,089,711 |   |   | $ | 1,105,322 |   |   | $ | 1,086,814 |   |   | $ | 1,082,987 |   |
| Interest      expense                                    |   |                                 | 568,772 |   |   |   | 694,327 |   |   |   | 771,794 |   |   |   | 696,429 |   |   |   | 604,207 |   |
| Net interest      income                                 |   |                                 | 428,769 |   |   |   | 395,384 |   |   |   | 333,528 |   |   |   | 390,385 |   |   |   | 478,780 |   |
| Provision for loan      losses                           |   |                                 | 200,000 |   |   |   | 69,000 |   |   |   | 2,500 |   |   |   | - |   |   |   | - |   |
| Net interest income after      provision for loan losses |   |                                 | 228,769 |   |   |   | 326,384 |   |   |   | 331,028 |   |   |   | 390,385 |   |   |   | 478,780 |   |
| Non-interest      income                                 |   |                                 | 79,801  |   |   |   | 11,180 |   |   |   | 75,790 |   |   |   | 91,350 |   |   |   | 102,199 |   |
| General and administrative      expense                  |   |                                 | 270,056 |   |   |   | 233,260 |   |   |   | 231,273 |   |   |   | 221,803 |   |   |   | 228,734 |   |
| Income before income tax      expense                    |   |                                 | 38,514  |   |   |   | 104,304 |   |   |   | 175,545 |   |   |   | 259,932 |   |   |   | 352,245 |   |
| Income tax      expense                                  |   |                                 | 10,830  |   |   |   | 28,962 |   |   |   | 50,723 |   |   |   | 85,035 |   |   |   | 118,442 |   |
| Net    income                                            |   | $                                    | 27,684  |   |   | $ | 75,342 |   |   | $ | 124,822 |   |   | $ | 174,897 |   |   | $ | 233,803 |   |
| Basic earnings per common      share                     |   | $                                    | 0.30    |   |   | $ | 0.83 |   |   | $ | 1.37 |   |   | $ | 1.84 |   |   | $ | 2.30 |   |
| Diluted earnings per common      share                   |   | $                                    | 0.30    |   |   | $ | 0.82 |   |   | $ | 1.35 |   |   | $ | 1.79 |   |   | $ | 2.26 |   |

----

|                                                       |   | At      or For the Year Ended December 31, |      |
|------------------------------------------------------------|--------|--------------------------------------------|-----------|
|                                                       |   | 2009                                       |      |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected      Financial Ratios and Other Data:             |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Return      on average assets                              |   |                                       | 0.13      | % |   |   | 0.35 | % |   |   | 0.58 | % |   |   | 0.80 | % |   |   | 1.02 | % |
| Return      on average stockholders' equity                |   |                                       | 2.31      |   |   |   | 6.24 |   |   |   | 10.39 |   |   |   | 13.73 |   |   |   | 17.06 |   |
| Return      on average tangible stockholders' equity (1)   |   |                                       | 2.74      |   |   |   | 7.37 |   |   |   | 12.28 |   |   |   | 16.06 |   |   |   | 19.72 |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      stockholders' equity to average assets        |   |                                       | 5.68      |   |   |   | 5.55 |   |   |   | 5.57 |   |   |   | 5.83 |   |   |   | 5.99 |   |
| Average      tangible stockholders' equity                 |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to      average tangible assets (1)(2)                     |   |                                       | 4.84      |   |   |   | 4.74 |   |   |   | 4.75 |   |   |   | 5.02 |   |   |   | 5.22 |   |
| Stockholders'      equity to total assets                  |   |                                       | 5.97      |   |   |   | 5.38 |   |   |   | 5.58 |   |   |   | 5.64 |   |   |   | 6.03 |   |
| Tangible      stockholders' equity to tangible             |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets      (tangible capital ratio) (1)(2)                |   |                                       | 5.10      |   |   |   | 4.57 |   |   |   | 4.77 |   |   |   | 4.82 |   |   |   | 5.25 |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest rate spread (3)                          |   |                                       | 2.04      |   |   |   | 1.80 |   |   |   | 1.50 |   |   |   | 1.76 |   |   |   | 2.11 |   |
| Net      interest margin (4)                               |   |                                       | 2.13      |   |   |   | 1.91 |   |   |   | 1.62 |   |   |   | 1.87 |   |   |   | 2.19 |   |
| Average      interest-earning assets to average            |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-bearing      liabilities                          |   |                                       | 1.03      | x |   |   | 1.03 | x |   |   | 1.03 | x |   |   | 1.03 | x |   |   | 1.03 | x |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative expense to average assets  |   |                                       | 1.28      | % |   |   | 1.07 | % |   |   | 1.07 | % |   |   | 1.01 | % |   |   | 1.00 | % |
| Efficiency      ratio (5)                                  |   |                                       | 53.10     |   |   |   | 57.37 |   |   |   | 56.50 |   |   |   | 46.04 |   |   |   | 39.37 |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends paid per common share                  |   | $                                          | 0.52      |   |   | $ | 1.04 |   |   | $ | 1.04 |   |   | $ | 0.96 |   |   | $ | 0.80 |   |
| Dividend      payout ratio                                 |   |                                       | 173.33    | % |   |   | 126.83 | % |   |   | 77.04 | % |   |   | 53.63 | % |   |   | 35.40 | % |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset      Quality Ratios:                                 |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-performing      loans to total loans (6)               |   |                                       | 2.59      |   |   |   | 1.43 |   |   |   | 0.42 |   |   |   | 0.28 |   |   |   | 0.26 |   |
| Non-performing      loans to total assets (6)              |   |                                       | 2.02      |   |   |   | 1.09 |   |   |   | 0.31 |   |   |   | 0.20 |   |   |   | 0.16 |   |
| Non-performing      assets to total assets (6)(7)          |   |                                       | 2.25      |   |   |   | 1.20 |   |   |   | 0.36 |   |   |   | 0.20 |   |   |   | 0.17 |   |
| Allowance      for loan losses to non-performing loans (6) |   |                                       | 47.49     |   |   |   | 49.88 |   |   |   | 115.97 |   |   |   | 189.84 |   |   |   | 220.03 |   |
| Allowance      for loan losses to non-accrual loans        |   |                                       | 47.56     |   |   |   | 49.89 |   |   |   | 116.78 |   |   |   | 192.06 |   |   |   | 221.09 |   |
| Allowance      for loan losses to total loans              |   |                                       | 1.23      |   |   |   | 0.71 |   |   |   | 0.49 |   |   |   | 0.53 |   |   |   | 0.56 |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Data:                                           |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                                       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number      of deposit accounts                            |   |                                       | 817,632   |   |   |   | 865,391 |   |   |   | 888,838 |   |   |   | 928,647 |   |   |   | 953,998 |   |
| Mortgage      loans serviced for others (in thousands)     |   | $                                          | 1,379,259 |   |   | $ | 1,225,656 |   |   | $ | 1,272,220 |   |   | $ | 1,363,591 |   |   | $ | 1,502,852 |   |
| Full      service banking offices                          |   |                                       | 85        |   |   |   | 85 |   |   |   | 86 |   |   |   | 86 |   |   |   | 86 |   |
| Regional      lending offices                              |   |                                       | 3         |   |   |   | 3 |   |   |   | 3 |   |   |   | 3 |   |   |   | 3 |   |
| Full      time equivalent employees                        |   |                                       | 1,592     |   |   |   | 1,575 |   |   |   | 1,615 |   |   |   | 1,626 |   |   |   | 1,658 |   |

| (1) | Tangible      stockholders' equity represents stockholders' equity less      goodwill.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Tangible      assets represent assets less goodwill.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (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) | Efficiency      ratio represents general and administrative expense divided by the sum of      net interest income plus non-interest income.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (6) | Non-performing      loans consist of all non-accrual loans and all mortgage loans delinquent      90 days or more as to their maturity date but not their interest due and      exclude loans held-for-sale and loans which have been restructured and are      accruing and performing in accordance with the restructured terms for a      satisfactory period of time.  Restructured accruing loans      totaled $26.0 million, $1.1 million, $1.2 million, $1.5 million and $1.6      million at December 31, 2009, 2008, 2007, 2006 and 2005,      respectively. |
| (7) | Non-performing      assets consist of all non-performing loans and real estate      owned.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| ITEM 7. | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      RESULTS OF OPERATIONS |
|---------|-------------------------------------------------------------------------------------------------|

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|                       |   |       |   |   |   |                |   |     |   |   |    | Certificates      of Deposit |   |   |
|----------------------------|--------|------------|--------|--------|--------|---------------------|--------|----------|--------|--------|---------|------------------------------|--------|--------|
|                       |   | Borrowings |   |   |   | and Liquid      CDs |   |     |
|                       |   |       |   |   |   |                |   | Weighted |   |   |    |                         |   |   |   |   | Weighted |   |
|                       |   |       |   |   |   |                |   | Average  |   |   |    |                         |   |   |   |   | Average |   |
| (Dollars in      Millions) |   | Amount     |   |   |   |                |   | Rate     |   |   | Amount  |                         |   |   |   |   | Rate |   |
| Contractual      Maturity: |   |       |   |   |   |                |   |     |   |   |    |                         |   |   |   |   |   |   |   |   |
| 2010                       |   | $          | 1,540  |   |   |                |   |     |   | 3.56   | %  |                         |   | $      | 6,293 |   | (1) |   |   | 2.32 | %  |   |
| 2011                       |   |       | 1,116  |   | (2)    |                |   | 3.64     |   |   |    |                         | 1,080  |   |   |   |   |   |   |   | 3.39 |   |   |
| 2012                       |   |       | 1,144  |   | (3)    |                |   | 4.62     |   |   |    |                         | 976    |   |   |   |   |   |   |   | 3.15 |   |   |
| 2013                       |   |       | -      |   |   |                |   |     |   |   | -       |                         |   |   |   | 178 |   |   |   |   |   |   |   | 4.06 |   |   |
| 2014                       |   |       | -      |   |   |                |   |     |   |   | -       |                         |   |   |   | 269 |   |   |   |   |   |   |   | 3.12 |   |   |
| 2015 and      thereafter   |   |       | 2,079  |   | (4)    |                |   | 4.67     |   |   |    |                         | 1      |   |   |   |   |   |   |   | 3.79 |   |   |
| Total                      |   | $          | 5,879  |   |   |                |   |     |   |   | 4.17    | %                       |   |   | $ | 8,797 |   |   |   |   |   |   |   | 2.60 | %  |   |

| (1) | Includes      $711.5 million of Liquid CDs with a weighted average rate of 0.50% and      $5.58 billion of certificates of deposit with a weighted average rate of      2.55%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      $125.0 million of borrowings, with a weighted average rate of 4.89%, which      are callable by the counterparty in 2010 and at various times      thereafter. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      $850.0 million of borrowings, with a weighted average rate of 4.39%, which      are callable by the counterparty in 2010 and at various times      thereafter. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Includes      $1.95 billion of borrowings, with a weighted average rate of 4.34%, which      are callable by the counterparty in 2010 and at various times      thereafter. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|                                                          |   | Payments due by      period |      |
|---------------------------------------------------------------|--------|-----------------------------|-----------|
|        (In      Thousands)                               |   | Total                       |      |   | Less      thanOne      Year |   |   | One      toThree      Years |   |   | Three      toFive      Years |   |   | More      thanFive      Years |   |
| Contractual      Obligations:                                 |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings with original terms      greater than three months |   | $                           | 5,788,866 |   |   | $ | 1,450,000 |   |   | $ | 2,260,000 |   |   | $ | - |   |   | $ | 2,078,866 |   |
| Minimum rental payments due      under non-cancelable         |   |                        |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operating      leases                                         |   |                        | 70,371    |   |   |   | 7,274 |   |   |   | 13,702 |   |   |   | 12,343 |   |   |   | 37,052 |   |
| Commitments to originate and      purchase loans (1)          |   |                        | 553,333   |   |   |   | 553,333 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commitments to fund unused      lines of credit (2)           |   |                        | 306,809   |   |   |   | 306,809 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                         |   | $                           | 6,719,379 |   |   | $ | 2,317,416 |   |   | $ | 2,273,702 |   |   | $ | 12,343 |   |   | $ | 2,115,918 |   |

| (1) | Commitments      to originate and purchase loans include commitments to originate loans      held-for-sale of $53.4million. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

| (2) | Unused      lines of credit relate primarily to home equity lines of      credit. |
|-----|-----------------------------------------------------------------------------------|

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|                                                                       |   | For      the Year Ended December 31, |       |
|----------------------------------------------------------------------------|--------|--------------------------------------|------------|
|                                                                       |   |                                 |       |   | 2009 |   |   |   |   |   |   |   |   | 2008 |   |   |   |   |   |   |   |   | 2007 |   |   |   |   |
|                                                                       |   |                                 |       |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                                       |   | Average                              |       |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
| (Dollars in      Thousands)                                                |   | Balance                              |       |   | Interest |   |   | Cost |   |   | Balance |   |   | Interest |   |   | Cost |   |   | Balance |   |   | Interest |   |   | Cost |   |
| Assets:                                                                    |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning      assets:                                              |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans      (1):                                                   |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family                                                    |   | $                                    | 12,166,413 |   |   | $ | 609,724 |   |   |   | 5.01 | % |   | $ | 11,962,010 |   |   | $ | 637,297 |   |   |   | 5.33 | % |   | $ | 10,995,688 |   |   | $ | 587,863 |   |   |   | 5.35 | % |
| Multi-family,      commercial                                              |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| real estate and      construction                                          |   |                                 | 3,680,486  |   |   |   | 217,480 |   |   |   | 5.91 |   |   |   | 3,947,413 |   |   |   | 234,922 |   |   |   | 5.95 |   |   |   | 4,171,915 |   |   |   | 254,536 |   |   |   | 6.10 |   |
| Consumer and other loans      (1)                                          |   |                                 | 336,545    |   |   |   | 10,882 |   |   |   | 3.23 |   |   |   | 345,019 |   |   |   | 17,325 |   |   |   | 5.02 |   |   |   | 397,476 |   |   |   | 30,178 |   |   |   | 7.59 |   |
| Total    loans                                                             |   |                                 | 16,183,444 |   |   |   | 838,086 |   |   |   | 5.18 |   |   |   | 16,254,442 |   |   |   | 889,544 |   |   |   | 5.47 |   |   |   | 15,565,079 |   |   |   | 872,577 |   |   |   | 5.61 |   |
| Mortgage-backed      and                                                   |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other securities      (2)                                                  |   |                                 | 3,494,966  |   |   |   | 149,655 |   |   |   | 4.28 |   |   |   | 4,194,320 |   |   |   | 185,160 |   |   |   | 4.41 |   |   |   | 4,850,753 |   |   |   | 219,040 |   |   |   | 4.52 |   |
| Federal funds sold,      repurchase                                        |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agreements and      interest-                                              |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning cash      accounts                                                 |   |                                 | 226,689    |   |   |   | 448 |   |   |   | 0.20 |   |   |   | 88,650 |   |   |   | 1,939 |   |   |   | 2.19 |   |   |   | 39,838 |   |   |   | 2,071 |   |   |   | 5.20 |   |
| FHLB-NY      stock                                                         |   |                                 | 181,472    |   |   |   | 9,352 |   |   |   | 5.15 |   |   |   | 207,535 |   |   |   | 13,068 |   |   |   | 6.30 |   |   |   | 167,651 |   |   |   | 11,634 |   |   |   | 6.94 |   |
| Total interest-earning      assets                                         |   |                                 | 20,086,571 |   |   |   | 997,541 |   |   |   | 4.97 |   |   |   | 20,744,947 |   |   |   | 1,089,711 |   |   |   | 5.25 |   |   |   | 20,623,321 |   |   |   | 1,105,322 |   |   |   | 5.36 |   |
| Goodwill                                                                   |   |                                 | 185,151    |   |   |   |   |   |   |   |   |   |   |   | 185,151 |   |   |   |   |   |   |   |   |   |   |   | 185,151 |   |   |   |   |   |   |   |   |   |
| Other non-interest-earning      assets                                     |   |                                 | 822,036    |   |   |   |   |   |   |   |   |   |   |   | 820,216 |   |   |   |   |   |   |   |   |   |   |   | 753,377 |   |   |   |   |   |   |   |   |   |
| Total    assets                                                            |   | $                                    | 21,093,758 |   |   |   |   |   |   |   |   |   |   | $ | 21,750,314 |   |   |   |   |   |   |   |   |   |   | $ | 21,561,849 |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and stockholders'      equity:                                 |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing      liabilities:                                         |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                                                    |   | $                                    | 1,928,842  |   |   |   | 7,806 |   |   |   | 0.40 |   |   | $ | 1,863,622 |   |   |   | 7,551 |   |   |   | 0.41 |   |   | $ | 2,014,253 |   |   |   | 8,126 |   |   |   | 0.40 |   |
| Money    market                                                            |   |                                 | 317,168    |   |   |   | 2,095 |   |   |   | 0.66 |   |   |   | 311,910 |   |   |   | 3,189 |   |   |   | 1.02 |   |   |   | 379,634 |   |   |   | 3,780 |   |   |   | 1.00 |   |
| NOW and demand      deposit                                                |   |                                 | 1,534,131  |   |   |   | 1,064 |   |   |   | 0.07 |   |   |   | 1,470,402 |   |   |   | 1,290 |   |   |   | 0.09 |   |   |   | 1,465,463 |   |   |   | 951 |   |   |   | 0.06 |   |
| Liquid    CDs                                                              |   |                                 | 884,436    |   |   |   | 10,659 |   |   |   | 1.21 |   |   |   | 1,225,153 |   |   |   | 36,792 |   |   |   | 3.00 |   |   |   | 1,549,774 |   |   |   | 73,352 |   |   |   | 4.73 |   |
| Total core      deposits                                                   |   |                                 | 4,664,577  |   |   |   | 21,624 |   |   |   | 0.46 |   |   |   | 4,871,087 |   |   |   | 48,822 |   |   |   | 1.00 |   |   |   | 5,409,124 |   |   |   | 86,209 |   |   |   | 1.59 |   |
| Certificates of      deposit                                               |   |                                 | 8,728,580  |   |   |   | 293,747 |   |   |   | 3.37 |   |   |   | 8,192,114 |   |   |   | 345,075 |   |   |   | 4.21 |   |   |   | 7,823,767 |   |   |   | 369,830 |   |   |   | 4.73 |   |
| Total      deposits                                                        |   |                                 | 13,393,157 |   |   |   | 315,371 |   |   |   | 2.35 |   |   |   | 13,063,201 |   |   |   | 393,897 |   |   |   | 3.02 |   |   |   | 13,232,891 |   |   |   | 456,039 |   |   |   | 3.45 |   |
| Borrowings                                                                 |   |                                 | 6,051,655  |   |   |   | 253,401 |   |   |   | 4.19 |   |   |   | 7,069,155 |   |   |   | 300,430 |   |   |   | 4.25 |   |   |   | 6,776,394 |   |   |   | 315,755 |   |   |   | 4.66 |   |
| Total interest-bearing      liabilities                                    |   |                                 | 19,444,812 |   |   |   | 568,772 |   |   |   | 2.93 |   |   |   | 20,132,356 |   |   |   | 694,327 |   |   |   | 3.45 |   |   |   | 20,009,285 |   |   |   | 771,794 |   |   |   | 3.86 |   |
| Non-interest-bearing      liabilities                                      |   |                                 | 451,677    |   |   |   |   |   |   |   |   |   |   |   | 410,082 |   |   |   |   |   |   |   |   |   |   |   | 351,080 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                                     |   |                                 | 19,896,489 |   |   |   |   |   |   |   |   |   |   |   | 20,542,438 |   |   |   |   |   |   |   |   |   |   |   | 20,360,365 |   |   |   |   |   |   |   |   |   |
| Stockholders'      equity                                                  |   |                                 | 1,197,269  |   |   |   |   |   |   |   |   |   |   |   | 1,207,876 |   |   |   |   |   |   |   |   |   |   |   | 1,201,484 |   |   |   |   |   |   |   |   |   |
| Total liabilities      and                                                 |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stockholders'      equity                                                  |   | $                                    | 21,093,758 |   |   |   |   |   |   |   |   |   |   | $ | 21,750,314 |   |   |   |   |   |   |   |   |   |   | $ | 21,561,849 |   |   |   |   |   |   |   |   |   |
|                                                                       |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest      income/                                                  |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net interest rate spread      (3)                                          |   |                                 |       |   |   | $ | 428,769 |   |   |   | 2.04 | % |   |   |   |   |   | $ | 395,384 |   |   |   | 1.80 | % |   |   |   |   |   | $ | 333,528 |   |   |   | 1.50 | % |
|                                                                       |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets/      net interest margin      (4)             |   | $                                    | 641,759    |   |   |   |   |   |   |   | 2.13 | % |   | $ | 612,591 |   |   |   |   |   |   |   | 1.91 | % |   | $ | 614,036 |   |   |   |   |   |   |   | 1.62 | % |
|                                                                       |   |                                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of interest-earning assets to      interest-bearing liabilities |   |                                 | 1.03       | x |   |   |   |   |   |   |   |   |   |   | 1.03 | x |   |   |   |   |   |   |   |   |   |   | 1.03 | x |   |   |   |   |   |   |   |   |

| (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. |
|-----|----------------------------------------------------------------------------------------------------------|

----

|                                |   | Year Ended December 31,      2009 |    |   | Year Ended December 31,      2008 |   |
|-------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|
|                                |   | Compared    to                    |    |   | Compared    to                    |   |
|                                |   | Year Ended December 31,      2008 |    |   | Year Ended December 31,      2007 |   |
|                                |   | Increase      (Decrease)          |    |   | Increase      (Decrease)          |   |
| (In      Thousands)                 |   | Volume                            |    |   | Rate                              |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
| Interest-earning      assets:       |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      loans:                |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family             |   | $                                 | 10,853  |   |                              | $      | (38,426 | ) |   | $ | (27,573 | ) |   | $ | 51,636 |   |   | $ | (2,202 | ) |   | $ | 49,434 |   |
| Multi-family,      commercial       |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| real estate and      construction   |   |                              | (15,865 | )      |                              |   | (1,577 | ) |   |   | (17,442 | ) |   |   | (13,462 | ) |   |   | (6,152 | ) |   |   | (19,614 | ) |
| Consumer and other      loans       |   |                              | (415    | )      |                              |   | (6,028 | ) |   |   | (6,443 | ) |   |   | (3,604 | ) |   |   | (9,249 | ) |   |   | (12,853 | ) |
| Mortgage-backed      and            |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| other      securities               |   |                              | (30,171 | )      |                              |   | (5,334 | ) |   |   | (35,505 | ) |   |   | (28,716 | ) |   |   | (5,164 | ) |   |   | (33,880 | ) |
| Federal funds sold,      repurchase |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| agreements and      interest-       |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning cash      accounts          |   |                              | 1,286   |   |                              |   | (2,777 | ) |   |   | (1,491 | ) |   |   | 1,539 |   |   |   | (1,671 | ) |   |   | (132 | ) |
| FHLB-NY      stock                  |   |                              | (1,514  | )      |                              |   | (2,202 | ) |   |   | (3,716 | ) |   |   | 2,580 |   |   |   | (1,146 | ) |   |   | 1,434 |   |
| Total                               |   |                              | (35,826 | )      |                              |   | (56,344 | ) |   |   | (92,170 | ) |   |   | 9,973 |   |   |   | (25,584 | ) |   |   | (15,611 | ) |
| Interest-bearing      liabilities:  |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                             |   |                              | 370     |   |                              |   | (115 | ) |   |   | 255 |   |   |   | (733 | ) |   |   | 158 |   |   |   | (575 | ) |
| Money    market                     |   |                              | 53      |   |                              |   | (1,147 | ) |   |   | (1,094 | ) |   |   | (668 | ) |   |   | 77 |   |   |   | (591 | ) |
| NOW and demand      deposit         |   |                              | 59      |   |                              |   | (285 | ) |   |   | (226 | ) |   |   | 2 |   |   |   | 337 |   |   |   | 339 |   |
| Liquid    CDs                       |   |                              | (8,308  | )      |                              |   | (17,825 | ) |   |   | (26,133 | ) |   |   | (13,314 | ) |   |   | (23,246 | ) |   |   | (36,560 | ) |
| Certificates of      deposit        |   |                              | 21,325  |   |                              |   | (72,653 | ) |   |   | (51,328 | ) |   |   | 16,975 |   |   |   | (41,730 | ) |   |   | (24,755 | ) |
| Borrowings                          |   |                              | (42,829 | )      |                              |   | (4,200 | ) |   |   | (47,029 | ) |   |   | 13,253 |   |   |   | (28,578 | ) |   |   | (15,325 | ) |
| Total                               |   |                              | (29,330 | )      |                              |   | (96,225 | ) |   |   | (125,555 | ) |   |   | 15,515 |   |   |   | (92,982 | ) |   |   | (77,467 | ) |
| Net change in net      interest     |   |                              |    |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| income                              |   | $                                 | (6,496  | )      |                              | $      | 39,881 |   |   | $ | 33,385 |   |   | $ | (5,542 | ) |   | $ | 67,398 |   |   | $ | 61,856 |   |

----

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|                                               |   | At December      31, |       |
|----------------------------------------------------|--------|----------------------|------------|
|                                               |   | 2009                 |       |   | 2008 |   |
|                                               |   |                 |       |   | Percent |   |   |   |   |   | Percent |   |
| (Dollars in      Thousands)                        |   | Amount               |       |   | of Total |   |   | Amount |   |   | of Total |   |
| One-to-four      family:                           |   |                 |       |   |   |   |   |   |   |   |   |   |
| Full documentation      interest-only (1)          |   | $                    | 4,688,796  |   |   |   | 39.42 | % |   | $ | 5,501,989 |   |   |   | 44.55 | % |
| Full documentation      amortizing                 |   |                 | 5,152,021  |   |   |   | 43.31 |   |   |   | 4,389,618 |   |   |   | 35.54 |   |
| Reduced documentation      interest-only (1)(2)    |   |                 | 1,576,378  |   |   |   | 13.25 |   |   |   | 1,911,160 |   |   |   | 15.48 |   |
| Reduced documentation      amortizing (2)          |   |                 | 478,167    |   |   |   | 4.02 |   |   |   | 546,850 |   |   |   | 4.43 |   |
| Total one-to-four      family                      |   | $                    | 11,895,362 |   |   |   | 100.00 | % |   | $ | 12,349,617 |   |   |   | 100.00 | % |
| Multi-family and commercial      real estate:      |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full documentation      amortizing                 |   | $                    | 2,861,607  |   |   |   | 83.53 | % |   | $ | 3,146,103 |   |   |   | 81.66 | % |
| Full documentation      interest-only              |   |                 | 564,255    |   |   |   | 16.47 |   |   |   | 706,687 |   |   |   | 18.34 |   |
| Total multi-family and      commercial real estate |   | $                    | 3,425,862  |   |   |   | 100.00 | % |   | $ | 3,852,790 |   |   |   | 100.00 | % |

| (1) | Includes      interest-only hybrid ARM loans which were underwritten at the initial note      rate, which may have been a discounted rate, totaling $3.50 billion at      December 31, 2009 and $4.41 billion at December 31,  2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      SISA loans totaling $310.7 million at December 31, 2009 and $359.2 million      at December 31, 2008 and Super Streamline loans totaling $28.4 million at      December 31, 2009 and $36.9 million at December 31,  2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                 |   | At December      31, |    |
|------------------------------------------------------|--------|----------------------|---------|
| (Dollars in      Thousands)                          |   | 2009                 |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Non-accrual delinquent mortgage      loans           |   | $                    | 403,148 |   |   | $ | 236,366 |   |   | $ | 66,126 |   |   | $ | 40,805 |   |   | $ | 36,209 |   |
| Non-accrual delinquent consumer      and other loans |   |                 | 4,824   |   |   |   | 2,221 |   |   |   | 1,476 |   |   |   | 818 |   |   |   | 500 |   |
| Mortgage loans delinquent 90      days or more and   |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| still accruing interest      (1)                     |   |                 | 600     |   |   |   | 33 |   |   |   | 474 |   |   |   | 488 |   |   |   | 176 |   |
| Total non-performing loans      (2)                  |   |                 | 408,572 |   |   |   | 238,620 |   |   |   | 68,076 |   |   |   | 42,111 |   |   |   | 36,885 |   |
| REO, net    (3)                                      |   |                 | 46,220  |   |   |   | 25,481 |   |   |   | 9,115 |   |   |   | 627 |   |   |   | 1,066 |   |
| Total non-performing      assets                     |   | $                    | 454,792 |   |   | $ | 264,101 |   |   | $ | 77,191 |   |   | $ | 42,738 |   |   | $ | 37,951 |   |
| Non-performing loans to total      loans             |   |                 | 2.59    | % |   |   | 1.43 | % |   |   | 0.42 | % |   |   | 0.28 | % |   |   | 0.26 | % |
| Non-performing loans to total      assets            |   |                 | 2.02    |   |   |   | 1.09 |   |   |   | 0.31 |   |   |   | 0.20 |   |   |   | 0.16 |   |
| Non-performing assets to total      assets           |   |                 | 2.25    |   |   |   | 1.20 |   |   |   | 0.36 |   |   |   | 0.20 |   |   |   | 0.17 |   |

| (1) | Mortgage      loans delinquent 90 days or more and still accruing interest consist      primarily of loans delinquent 90 days or more as to their maturity date      but not their interest due. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Non-performing      loans exclude loans which have been restructured and are accruing and      performing in accordance with the restructured terms for a satisfactory      period of time.  Restructured accruing loans totaled $26.0      million, $1.1 million, $1.2 million, $1.5 million and $1.6 million at      December 31, 2009, 2008, 2007, 2006 and 2005,  respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | REO,      substantially all of which are one-to-four family properties, is net of      allowance for losses totaling $816,000 at December 31, 2009, $2.0 million      at December 31, 2008 and $493,000 at December 31, 2007.  There      was no allowance for losses at December 31, 2006 and  2005. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                         |   | At December      31, |    |
|----------------------------------------------|--------|----------------------|---------|
|                                         |   | 2009                 |    |   | 2008 |   |
|                                         |   |                 |    |   | Percent |   |   |   |   |   | Percent |   |
| (Dollars in      Thousands)                  |   | Amount               |    |   | of Total |   |   | Amount |   |   | of Total |   |
| Non-performing one-to-four      family:      |   |                 |    |   |   |   |   |   |   |   |   |   |
| Full documentation      interest-only        |   | $                    | 106,441 |   |   |   | 32.25 | % |   | $ | 50,636 |   |   |   | 28.52 | % |
| Full documentation      amortizing           |   |                 | 40,875  |   |   |   | 12.38 |   |   |   | 18,565 |   |   |   | 10.46 |   |
| Reduced documentation      interest-only     |   |                 | 158,164 |   |   |   | 47.92 |   |   |   | 92,863 |   |   |   | 52.30 |   |
| Reduced documentation      amortizing        |   |                 | 24,602  |   |   |   | 7.45 |   |   |   | 15,478 |   |   |   | 8.72 |   |
| Total non-performing      one-to-four family |   | $                    | 330,082 |   |   |   | 100.00 | % |   | $ | 177,542 |   |   |   | 100.00 | % |
| Non-performing multi-family      and         |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| commercial real      estate:                 |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full documentation      amortizing           |   | $                    | 42,637  |   |   |   | 62.51 | % |   | $ | 43,097 |   |   |   | 84.35 | % |
| Full documentation      interest-only        |   |                 | 25,571  |   |   |   | 37.49 |   |   |   | 7,995 |   |   |   | 15.65 |   |
| Total non-performing      multi-family and   |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| commercial real      estate                  |   | $                    | 68,208  |   |   |   | 100.00 | % |   | $ | 51,092 |   |   |   | 100.00 | % |

|                       |   | One-to-Four      Family Mortgage Loans |     |
|----------------------------|--------|----------------------------------------|----------|
|                       |   | At      December 31, 2009              |     |
|                       |   |                                   |     |   |   |   |   |   |   |   |   |   |   | Non-Performing |   |
|                       |   |                                   |     |   |   |   |    |   |   |   | Percent      of |   |   | Loans |   |
|                       |   |                                   |     |   |   |   |   | Total |   |   | Total |   |   | as      Percent |   |
|                       |   |                                   |     |   | Percent      of |   |   | Non-Performing |   |   | Non-Performing |   |   | of |   |
| (Dollars      in Millions) |   | Total      Loans                       |     |   | Total      Loans |   |   | Loans |   |   | Loans |   |   | State      Totals |   |
| State:                     |   |                                   |     |   |   |   |   |   |   |   |   |   |   |   |   |
| New      York              |   | $                                      | 3,079.6  |   |   |   | 25.8 | % |   | $ | 41.4 |   |   |   | 12.5 | % |   |   | 1.34 | % |
| Illinois                   |   |                                   | 1,435.7  |   |   |   | 12.1 |   |   |   | 41.5 |   |   |   | 12.6 |   |   |   | 2.89 |   |
| Connecticut                |   |                                   | 1,200.4  |   |   |   | 10.1 |   |   |   | 28.6 |   |   |   | 8.7 |   |   |   | 2.38 |   |
| California                 |   |                                   | 1,077.7  |   |   |   | 9.1 |   |   |   | 52.2 |   |   |   | 15.8 |   |   |   | 4.84 |   |
| New      Jersey            |   |                                   | 921.9    |   |   |   | 7.8 |   |   |   | 41.6 |   |   |   | 12.6 |   |   |   | 4.51 |   |
| Massachusetts              |   |                                   | 833.3    |   |   |   | 7.0 |   |   |   | 16.7 |   |   |   | 5.1 |   |   |   | 2.00 |   |
| Virginia                   |   |                                   | 785.2    |   |   |   | 6.6 |   |   |   | 16.2 |   |   |   | 4.9 |   |   |   | 2.06 |   |
| Maryland                   |   |                                   | 761.3    |   |   |   | 6.4 |   |   |   | 38.1 |   |   |   | 11.5 |   |   |   | 5.00 |   |
| Washington                 |   |                                   | 354.7    |   |   |   | 3.0 |   |   |   | 2.9 |   |   |   | 0.9 |   |   |   | 0.82 |   |
| Florida                    |   |                                   | 267.7    |   |   |   | 2.3 |   |   |   | 26.1 |   |   |   | 7.9 |   |   |   | 9.75 |   |
| All      other states (1)  |   |                                   | 1,177.9  |   |   |   | 9.8 |   |   |   | 24.8 |   |   |   | 7.5 |   |   |   | 2.11 |   |
| Total                      |   | $                                      | 11,895.4 |   |   |   | 100.0 | % |   | $ | 330.1 |   |   |   | 100.0 | % |   |   | 2.78 | % |

| (1) | Includes      29 states and Washington, D.C. |
|-----|----------------------------------------------|

----

|                                 |   | 30-59    Days |   |   | 60-89    Days |   |    | 90 Days or      More |   |
|--------------------------------------|--------|---------------|--------|--------|---------------|--------|---------|----------------------|--------|
|                                 |   | Number        |   |   |          |   |    | Number               |   |   |   |   |   | Number |   |   |   |   |
|                                 |   | of            |   |   |          |   |    | of                   |   |   |   |   |   | of |   |   |   |   |
| (Dollars in      Thousands)          |   | Loans         |   |   | Amount        |   |    | Loans                |   |   | Amount |   |   | Loans |   |   | Amount |   |
| At December 31,      2009:           |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |
| Mortgage      loans:                 |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family              |   |          | 431    |   |          | $      | 146,918 |                 |   |   | 182 |   |   | $ | 62,522 |   |   |   | 936 |   |   | $ | 330,082 |   |
| Multi-family                         |   |          | 64     |   |          |   | 48,137  |                 |   |   | 18 |   |   |   | 12,392 |   |   |   | 53 |   |   |   | 59,526 |   |
| Commercial real      estate          |   |          | 8      |   |          |   | 13,512  |                 |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | 8,682 |   |
| Construction                         |   |          | -      |   |          |   | -       |                 |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | 5,458 |   |
| Consumer and other      loans        |   |          | 136    |   |          |   | 4,327   |                 |   |   | 39 |   |   |   | 1,400 |   |   |   | 61 |   |   |   | 4,824 |   |
| Total delinquent      loans          |   |          | 639    |   |          | $      | 212,894 |                 |   |   | 239 |   |   | $ | 76,314 |   |   |   | 1,056 |   |   | $ | 408,572 |   |
| Delinquent loans to total      loans |   |          |   |   |          |   | 1.35    | %                    |   |   |   |   |   |   | 0.48 | % |   |   |   |   |   |   | 2.59 | % |
|                                 |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At December 31,      2008:           |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      loans:                 |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family              |   |          | 465    |   |          | $      | 145,989 |                 |   |   | 135 |   |   | $ | 50,749 |   |   |   | 489 |   |   | $ | 177,542 |   |
| Multi-family                         |   |          | 64     |   |          |   | 63,015  |                 |   |   | 16 |   |   |   | 13,125 |   |   |   | 50 |   |   |   | 50,392 |   |
| Commercial real      estate          |   |          | 11     |   |          |   | 16,612  |                 |   |   | 4 |   |   |   | 5,123 |   |   |   | 1 |   |   |   | 700 |   |
| Construction                         |   |          | 1      |   |          |   | 1,133   |                 |   |   | - |   |   |   | - |   |   |   | 5 |   |   |   | 7,765 |   |
| Consumer and other      loans        |   |          | 119    |   |          |   | 3,085   |                 |   |   | 45 |   |   |   | 1,065 |   |   |   | 43 |   |   |   | 2,221 |   |
| Total delinquent      loans          |   |          | 660    |   |          | $      | 229,834 |                 |   |   | 200 |   |   | $ | 70,062 |   |   |   | 588 |   |   | $ | 238,620 |   |
| Delinquent loans to total      loans |   |          |   |   |          |   | 1.38    | %                    |   |   |   |   |   |   | 0.42 | % |   |   |   |   |   |   | 1.43 | % |
|                                 |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At December 31,      2007:           |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage      loans:                 |   |          |   |   |          |   |    |                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family              |   |          | 327    |   |          | $      | 111,757 |                 |   |   | 96 |   |   | $ | 29,275 |   |   |   | 204 |   |   | $ | 60,261 |   |
| Multi-family                         |   |          | 34     |   |          |   | 25,701  |                 |   |   | 9 |   |   |   | 9,133 |   |   |   | 11 |   |   |   | 5,067 |   |
| Commercial real      estate          |   |          | 5      |   |          |   | 1,992   |                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction                         |   |          | 2      |   |          |   | 2,839   |                 |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | 1,272 |   |
| Consumer and other      loans        |   |          | 96     |   |          |   | 2,136   |                 |   |   | 30 |   |   |   | 673 |   |   |   | 41 |   |   |   | 1,476 |   |
| Total delinquent      loans          |   |          | 464    |   |          | $      | 144,425 |                 |   |   | 135 |   |   | $ | 39,081 |   |   |   | 258 |   |   | $ | 68,076 |   |
| Delinquent loans to total      loans |   |          |   |   |          |   | 0.89    | %                    |   |   |   |   |   |   | 0.24 | % |   |   |   |   |   |   | 0.42 | % |

----

|                                                   |   | At or For the Year Ended      December 31, |     |
|--------------------------------------------------------|--------|--------------------------------------------|----------|
| (Dollars in      Thousands)                            |   | 2009                                       |     |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
| Allowance for losses on      loans:                    |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of      year                      |   | $                                          | 119,029  |   |   | $ | 78,946 |   |   | $ | 79,942 |   |   | $ | 81,159 |   |   | $ | 82,758 |   |
| Provision charged to      operations                   |   |                                       | 200,000  |   |   |   | 69,000 |   |   |   | 2,500 |   |   |   | - |   |   |   | - |   |
| Charge-offs:                                           |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family                                |   |                                       | (83,713  | ) |   |   | (17,973 | ) |   |   | (1,407 | ) |   |   | (89 | ) |   |   | (749 | ) |
| Multi-family                                           |   |                                       | (34,363  | ) |   |   | (9,249 | ) |   |   | (73 | ) |   |   | (967 | ) |   |   | - |   |
| Commercial real      estate                            |   |                                       | (2,666   | ) |   |   | (190 | ) |   |   | (243 | ) |   |   | (197 | ) |   |   | (650 | ) |
| Construction                                           |   |                                       | (10,361  | ) |   |   | (1,484 | ) |   |   | (1,454 | ) |   |   | - |   |   |   | - |   |
| Consumer and other      loans                          |   |                                       | (2,096   | ) |   |   | (1,258 | ) |   |   | (752 | ) |   |   | (312 | ) |   |   | (706 | ) |
| Total      charge-offs                                 |   |                                       | (133,199 | ) |   |   | (30,154 | ) |   |   | (3,929 | ) |   |   | (1,565 | ) |   |   | (2,105 | ) |
| Recoveries:                                            |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| One-to-four      family                                |   |                                       | 6,956    |   |   |   | 911 |   |   |   | 72 |   |   |   | 30 |   |   |   | 140 |   |
| Multi-family                                           |   |                                       | 1,036    |   |   |   | 9 |   |   |   | - |   |   |   | - |   |   |   | 34 |   |
| Commercial real      estate                            |   |                                       | 81       |   |   |   | - |   |   |   | 197 |   |   |   | - |   |   |   | - |   |
| Construction                                           |   |                                       | 16       |   |   |   | 113 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Consumer and other      loans                          |   |                                       | 130      |   |   |   | 204 |   |   |   | 164 |   |   |   | 318 |   |   |   | 332 |   |
| Total      recoveries                                  |   |                                       | 8,219    |   |   |   | 1,237 |   |   |   | 433 |   |   |   | 348 |   |   |   | 506 |   |
| Net      charge-offs                                   |   |                                       | (124,980 | ) |   |   | (28,917 | ) |   |   | (3,496 | ) |   |   | (1,217 | ) |   |   | (1,599 | ) |
| Balance at end of      year                            |   | $                                          | 194,049  |   |   | $ | 119,029 |   |   | $ | 78,946 |   |   | $ | 79,942 |   |   | $ | 81,159 |   |
|                                                   |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net charge-offs to average      loans outstanding      |   |                                       | 0.77     | % |   |   | 0.18 | % |   |   | 0.02 | % |   |   | 0.01 | % |   |   | 0.01 | % |
| Allowance for loan losses to      total loans          |   |                                       | 1.23     |   |   |   | 0.71 |   |   |   | 0.49 |   |   |   | 0.53 |   |   |   | 0.56 |   |
| Allowance for loan losses to      non-performing loans |   |                                       | 47.49    |   |   |   | 49.88 |   |   |   | 115.97 |   |   |   | 189.84 |   |   |   | 220.03 |   |
|                                                   |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for losses on      REO:                      |   |                                       |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at beginning of      year                      |   | $                                          | 2,028    |   |   | $ | 493 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Provision charged to      operations                   |   |                                       | 1,297    |   |   |   | 2,695 |   |   |   | 493 |   |   |   | 121 |   |   |   | 56 |   |
| Charge-offs                                            |   |                                       | (4,943   | ) |   |   | (1,583 | ) |   |   | - |   |   |   | (121 | ) |   |   | (56 | ) |
| Recoveries                                             |   |                                       | 2,434    |   |   |   | 423 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Balance at end of      year                            |   | $                                          | 816      |   |   | $ | 2,028 |   |   | $ | 493 |   |   | $ | - |   |   | $ | - |   |

|                                 |   | At December      31, |    |
|--------------------------------------|--------|----------------------|---------|
|                                 |   | 2009                 |    |   | 2008 |   |   | 2007 |   |
|                                 |   |                 |    |   | % of    Loans |   |   |   |   |   | % of    Loans |   |   |   |   |   | % of    Loans |   |
|                                 |   |                 |    |   | to |   |   |   |   |   | to |   |   |   |   |   | to |   |
| (Dollars in      Thousands)          |   | Amount               |    |   | Total    Loans |   |   | Amount |   |   | Total    Loans |   |   | Amount |   |   | Total    Loans |   |
| One-to-four      family              |   | $                    | 113,288 |   |   |   | 75.88 | % |   | $ | 71,082 |   |   |   | 74.42 | % |   | $ | 41,400 |   |   |   | 72.51 | % |
| Multi-family                         |   |                 | 58,817  |   |   |   | 16.33 |   |   |   | 29,124 |   |   |   | 17.55 |   |   |   | 17,550 |   |   |   | 18.36 |   |
| Commercial real      estate          |   |                 | 10,638  |   |   |   | 5.53 |   |   |   | 9,412 |   |   |   | 5.67 |   |   |   | 10,325 |   |   |   | 6.43 |   |
| Construction                         |   |                 | 4,328   |   |   |   | 0.15 |   |   |   | 2,507 |   |   |   | 0.34 |   |   |   | 2,212 |   |   |   | 0.48 |   |
| Consumer and other      loans        |   |                 | 6,978   |   |   |   | 2.11 |   |   |   | 6,904 |   |   |   | 2.02 |   |   |   | 7,459 |   |   |   | 2.22 |   |
| Total allowance for loan      losses |   | $                    | 194,049 |   |   |   | 100.00 | % |   | $ | 119,029 |   |   |   | 100.00 | % |   | $ | 78,946 |   |   |   | 100.00 | % |

|                                 |   | At December      31, |   |   |           |   |   |   |   |
|--------------------------------------|--------|----------------------|--------|--------|----------------|--------|--------|--------|--------|
|                                 |   | 2006                 |   |   | 2005           |   |   |   |   |   |   |   |
|                                 |   |                 |   |   | % of    Loans  |   |   |   |   |   | % of    Loans |   |   |   |   |   |   |   |
|                                 |   |                 |   |   | to             |   |   |   |   |   | to |   |   |   |   |   |   |   |
| (Dollars in      Thousands)          |   | Amount               |   |   | Total    Loans |   |   | Amount |   |   | Total    Loans |   |   |   |   |   |   |   |
| One-to-four      family              |   | $                    | 35,242 |   |           |   | 68.67  | %      |   | $ | 34,051 |   |   |   | 68.24 | % |   |   |   |   |   |   |   |   |
| Multi-family                         |   |                 | 19,413 |   |           |   | 20.09  |   |   |   | 19,818 |   |   |   | 19.77 |   |   |   |   |   |   |   |   |   |
| Commercial real      estate          |   |                 | 11,768 |   |           |   | 7.40   |   |   |   | 11,437 |   |   |   | 7.52 |   |   |   |   |   |   |   |   |   |
| Construction                         |   |                 | 2,119  |   |           |   | 0.94   |   |   |   | 2,071 |   |   |   | 0.96 |   |   |   |   |   |   |   |   |   |
| Consumer and other      loans        |   |                 | 11,400 |   |           |   | 2.90   |   |   |   | 13,782 |   |   |   | 3.51 |   |   |   |   |   |   |   |   |   |
| Total allowance for loan      losses |   | $                    | 79,942 |   |           |   | 100.00 | %      |   | $ | 81,159 |   |   |   | 100.00 | % |   |   |   |   |   |   |   |   |

----

----

| ITEM      7A. | QUANTITATIVE AND QUALITATIVE      DISCLOSURES ABOUT MARKETRISK |
|---------------|----------------------------------------------------------------|

----

----

|                                     |   | At December 31,      2009 |       |
|------------------------------------------|--------|---------------------------|------------|
|                                     |   |                      |       |   | Morethan |   |   | Morethan |   |   |   |   |   |   |   |
|                                     |   |                      |       |   | One Year |   |   | Three    Years |   |   |   |   |   |   |   |
|                                     |   | One Year                  |       |   | to |   |   | to |   |   | Morethan |   |   |   |   |
| (Dollars in      Thousands)              |   | or Less                   |       |   | Three    Years |   |   | Five    Years |   |   | Five    Years |   |   | Total |   |
| Interest-earning      assets:            |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans      (1)                  |   | $                         | 5,497,849  |   |   | $ | 5,151,422 |   |   | $ | 3,777,244 |   |   | $ | 548,421 |   |   | $ | 14,974,936 |   |
| Consumer and other loans      (1)        |   |                      | 318,677    |   |   |   | 6,807 |   |   |   | 5 |   |   |   | 118 |   |   |   | 325,607 |   |
| Repurchase      agreements               |   |                      | 40,030     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 40,030 |   |
| Securities      available-for-sale       |   |                      | 269,556    |   |   |   | 286,216 |   |   |   | 173,530 |   |   |   | 109,874 |   |   |   | 839,176 |   |
| Securities      held-to-maturity         |   |                      | 820,989    |   |   |   | 981,860 |   |   |   | 416,714 |   |   |   | 98,034 |   |   |   | 2,317,597 |   |
| FHLB-NY      stock                       |   |                      | -          |   |   |   | - |   |   |   | - |   |   |   | 178,929 |   |   |   | 178,929 |   |
| Total interest-earning      assets       |   |                      | 6,947,101  |   |   |   | 6,426,305 |   |   |   | 4,367,493 |   |   |   | 935,376 |   |   |   | 18,676,275 |   |
| Net unamortized purchase      premiums   |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and deferred costs      (2)              |   |                      | 39,856     |   |   |   | 35,235 |   |   |   | 25,925 |   |   |   | 3,721 |   |   |   | 104,737 |   |
| Net interest-earning assets      (3)     |   |                      | 6,986,957  |   |   |   | 6,461,540 |   |   |   | 4,393,418 |   |   |   | 939,097 |   |   |   | 18,781,012 |   |
| Interest-bearing      liabilities:       |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                                  |   |                      | 260,270    |   |   |   | 433,902 |   |   |   | 433,902 |   |   |   | 913,627 |   |   |   | 2,041,701 |   |
| Money    market                          |   |                      | 144,070    |   |   |   | 90,678 |   |   |   | 90,678 |   |   |   | 1,416 |   |   |   | 326,842 |   |
| NOW and demand      deposit              |   |                      | 118,099    |   |   |   | 236,210 |   |   |   | 236,210 |   |   |   | 1,056,114 |   |   |   | 1,646,633 |   |
| Liquid    CDs                            |   |                      | 711,509    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 711,509 |   |
| Certificates of      deposit             |   |                      | 5,583,518  |   |   |   | 2,055,323 |   |   |   | 446,712 |   |   |   | - |   |   |   | 8,085,553 |   |
| Borrowings,      net                     |   |                      | 1,539,628  |   |   |   | 2,259,340 |   |   |   | - |   |   |   | 2,078,866 |   |   |   | 5,877,834 |   |
| Total interest-bearing      liabilities  |   |                      | 8,357,094  |   |   |   | 5,075,453 |   |   |   | 1,207,502 |   |   |   | 4,050,023 |   |   |   | 18,690,072 |   |
| Interest sensitivity      gap            |   |                      | (1,370,137 | ) |   |   | 1,386,087 |   |   |   | 3,185,916 |   |   |   | (3,110,926 | ) |   | $ | 90,940 |   |
| Cumulative interest sensitivity      gap |   | $                         | (1,370,137 | ) |   | $ | 15,950 |   |   | $ | 3,201,866 |   |   | $ | 90,940 |   |   |   |   |   |

| Cumulative interest      sensitivity     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| gap as a percentage of total      assets |   |   | (6.77  | )%     |   |   | 0.08   | %      |   |   | 15.81  | %      |   |   | 0.45   | %      |   |   |   |   |
| Cumulative net      interest-earning     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| assets as a percentage      of           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-bearing      liabilities        |   |   | 83.61  | %      |   |   | 100.12 | %      |   |   | 121.87 | %      |   |   | 100.49 | %      |   |   |   |   |

| (1) | Mortgage      loans and consumer and other loans include loans held-for-sale and exclude      non-performing loans and the allowance for loan  losses. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Net      unamortized purchase premiums and deferred costs are    prorated. |
|-----|----------------------------------------------------------------------------|

| (3) | Includes      securities available-for-sale at amortizedcost. |
|-----|---------------------------------------------------------------|

----

| ITEM 8.  | FINANCIAL      STATEMENTS AND SUPPLEMENTARY DATA |
|---------------|--------------------------------------------------|

| ITEM 9. | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTINGAND      FINANCIAL DISCLOSURE |
|---------|-----------------------------------------------------------------------------------------------|

| ITEM 9A. | CONTROLS      AND PROCEDURES |
|----------|------------------------------|

----

| ITEM 9B.  | OTHER      INFORMATION |
|----------------|------------------------|

| ITEM 10. | DIRECTORS,      EXECUTIVE OFFICERS AND CORPORATEGOVERNANCE |
|----------|------------------------------------------------------------|

----

| ITEM 11. | EXECUTIVE      COMPENSATION |
|----------|-----------------------------|

| ITEM 12. | SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND      MANAGEMENT      AND RELATED STOCKHOLDERMATTERS |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS, AND      DIRECTOR INDEPENDENCE |
|----------|-------------------------------------------------------------------------------------|

| ITEM 14. | PRINCIPAL      ACCOUNTANT FEES AND SERVICES |
|----------|---------------------------------------------|

----

| ITEM 15. | EXHIBITS      AND FINANCIAL STATEMENT SCHEDULES |
|----------|-------------------------------------------------|

| (a)  | 1.  | Financial      Statements |
|-----------|----------|---------------------------|

|   | 2. | Financial      Statement Schedules |
|--------|----|------------------------------------|

| (b) | Exhibits |
|-----|----------|

----

SIGNATURES

|   | /s/    | George L. Engelke, Jr.                    |   | Date:  | February 26, 2010 |
|--------|--------|-------------------------------------------|--------|--------|-------------------|
|   |   | George      L. Engelke, Jr.               |   |   |              |
|   |   | Chairman      and Chief Executive Officer |   |   |              |

|   |   | NAME                                         |   |   | DATE              |
|--------|--------|----------------------------------------------|--------|--------|-------------------|
|   |   |                                         |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | George L. Engelke, Jr.                       |   |   | February 26, 2010 |
|   |   | George      L. Engelke, Jr.                  |   |   |              |
|   |   | Chairman      and Chief Executive Officer    |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | Monte N. Redman                              |   |   | February 26, 2010 |
|   |   | Monte      N. Redman                         |   |   |              |
|   |   | President      and Chief Operating Officer   |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | Frank E. Fusco                               |   |   | February 26, 2010 |
|   |   | Frank      E. Fusco                          |   |   |              |
|   |   | Executive      Vice President, Treasurer and |   |   |              |
|   |   | Chief      Financial Officer                 |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | Gerard C. Keegan                             |   |   | February 26, 2010 |
|   |   | Gerard      C. Keegan                        |   |   |              |
|   |   | Vice      Chairman, Chief Administrative     |   |   |              |
|   |   | Officer      and Director                    |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | John J. Conefry, Jr.                         |   |   | February 26, 2010 |
|   |   | John      J. Conefry, Jr.                    |   |   |              |
|   |   | Vice      Chairman and Director              |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | John R. Chrin                                |   |   | February 26, 2010 |
|   |   | John      R. Chrin                           |   |   |              |
|   |   | Director                                     |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | Denis J. Connors                             |   |   | February 26, 2010 |
|   |   | Denis      J. Connors                        |   |   |              |
|   |   | Director                                     |   |   |              |
|   |   |                                         |   |   |              |
|   | /s/    | Peter C. Haeffner, Jr.                       |   |   | February 26, 2010 |
|   |   | Peter      C. Haeffner, Jr.                  |   |   |              |
|   |   | Director                                     |   |   |              |

----

|   | /s/    | Brian M. Leeney         |   |   | February 26, 2010 |
|--------|--------|-------------------------|--------|--------|-------------------|
|   |   | Brian      M. Leeney    |   |   |              |
|   |   | Director                |   |   |              |
|   |   |                    |   |   |              |
|   | /s/    | Ralph F. Palleschi      |   |   | February 26, 2010 |
|   |   | Ralph      F. Palleschi |   |   |              |
|   |   | Director                |   |   |              |
|   |   |                    |   |   |              |
|   | /s/    | Thomas V. Powderly      |   |   | February 26, 2010 |
|   |   | Thomas      V. Powderly |   |   |              |
|   |   | Director                |   |   |              |

----

|                                                                                                                       |   | Page |
|----------------------------------------------------------------------------------------------------------------------------|--------|------|
| Management Report on Internal Control Over Financial      Reporting                                                        |   | 98   |
| Reports of Independent Registered Public Accounting      Firm                                                              |   | 99   |
| Consolidated Statements of Financial Condition at December 31,      2009 and 2008                                          |   | 101  |
| Consolidated Statements of Income for the years ended December      31, 2009, 2008 and 2007                                |   | 102  |
| Consolidated Statements of Changes in Stockholders’ Equity for      the years ended December 31, 2009, 2008 and 2007 |   | 103  |
| Consolidated Statements of Cash Flows for the years ended      December 31, 2009, 2008 and 2007                            |   | 104  |
| Notes to Consolidated Financial Statements                                                                                 |   | 105  |

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MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIALREPORTING

----

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

----

----

| ASTORIA FINANCIAL CORPORATION ANDSUBSIDIARIES                                                 |   |
|-----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF FINANCIAL CONDITION                                           |   |
|                                                                                          |   |   |   |   |   |   |
|                                                                                          |   | At      December 31, |   |
| (In      Thousands, Except Share Data)                                                        |   | 2009 |   |   | 2008 |   |
|                                                                                          |   |   |   |   |   |   |
| ASSETS:                                                                                       |   |   |   |   |   |   |
| Cash      and due from banks                                                                  |   | $ | 71,540 |   |   | $ | 76,233 |   |
| Repurchase      agreements                                                                    |   |   | 40,030 |   |   |   | 24,060 |   |
| Available-for-sale      securities:                                                           |   |   |   |   |   |   |   |   |
| Encumbered                                                                                    |   |   | 798,367 |   |   |   | 1,017,769 |   |
| Unencumbered                                                                                  |   |   | 62,327 |   |   |   | 372,671 |   |
|                                                                                          |   |   | 860,694 |   |   |   | 1,390,440 |   |
| Held-to-maturity      securities, fair value of $2,367,520 and $2,643,955,      respectively: |   |   |   |   |   |   |   |   |
| Encumbered                                                                                    |   |   | 1,955,163 |   |   |   | 2,204,289 |   |
| Unencumbered                                                                                  |   |   | 362,722 |   |   |   | 442,573 |   |
|                                                                                          |   |   | 2,317,885 |   |   |   | 2,646,862 |   |
| Federal      Home Loan Bank of New York stock, at cost                                        |   |   | 178,929 |   |   |   | 211,900 |   |
| Loans      held-for-sale, net                                                                 |   |   | 34,274 |   |   |   | 5,272 |   |
| Loans      receivable                                                                         |   |   | 15,780,722 |   |   |   | 16,712,444 |   |
| Allowance      for loan losses                                                                |   |   | (194,049 | ) |   |   | (119,029 | ) |
| Loans      receivable, net                                                                    |   |   | 15,586,673 |   |   |   | 16,593,415 |   |
| Mortgage      servicing rights, net                                                           |   |   | 8,850 |   |   |   | 8,216 |   |
| Accrued      interest receivable                                                              |   |   | 66,121 |   |   |   | 79,589 |   |
| Premises      and equipment, net                                                              |   |   | 136,195 |   |   |   | 139,828 |   |
| Goodwill                                                                                      |   |   | 185,151 |   |   |   | 185,151 |   |
| Bank      owned life insurance                                                                |   |   | 401,735 |   |   |   | 401,280 |   |
| Real      estate owned, net                                                                   |   |   | 46,220 |   |   |   | 25,481 |   |
| Other      assets                                                                             |   |   | 317,882 |   |   |   | 194,384 |   |
| Total      assets                                                                             |   | $ | 20,252,179 |   |   | $ | 21,982,111 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                  |   |   |   |   |   |   |   |   |
| Deposits                                                                                      |   | $ | 12,812,238 |   |   | $ | 13,479,924 |   |
| Reverse      repurchase agreements                                                            |   |   | 2,500,000 |   |   |   | 2,850,000 |   |
| Federal      Home Loan Bank of New York advances                                              |   |   | 3,000,000 |   |   |   | 3,738,000 |   |
| Other      borrowings, net                                                                    |   |   | 377,834 |   |   |   | 377,274 |   |
| Mortgage      escrow funds                                                                    |   |   | 114,036 |   |   |   | 133,656 |   |
| Accrued      expenses and other liabilities                                                   |   |   | 239,457 |   |   |   | 221,488 |   |
| Total      liabilities                                                                        |   |   | 19,043,565 |   |   |   | 20,800,342 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| 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 97,083,607 and 95,881,132                                 |   |   |   |   |   |   |   |   |
| shares      outstanding, respectively)                                                        |   |   | 1,665 |   |   |   | 1,665 |   |
| Additional      paid-in capital                                                               |   |   | 857,662 |   |   |   | 856,021 |   |
| Retained      earnings                                                                        |   |   | 1,829,199 |   |   |   | 1,864,257 |   |
| Treasury      stock (69,411,281 and 70,613,756 shares, at cost,      respectively)            |   |   | (1,434,362 | ) |   |   | (1,459,211 | ) |
| Accumulated      other comprehensive loss                                                     |   |   | (29,779 | ) |   |   | (61,865 | ) |
| Unallocated      common stock held by ESOP (4,304,635 and 5,212,668                           |   |   |   |   |   |   |   |   |
| shares,      respectively)                                                                    |   |   | (15,771 | ) |   |   | (19,098 | ) |
| Total      stockholders' equity                                                               |   |   | 1,208,614 |   |   |   | 1,181,769 |   |
| Total      liabilities and stockholders' equity                                               |   | $ | 20,252,179 |   |   | $ | 21,982,111 |   |

| See      accompanying Notes to Consolidated Financial  Statements. |
|--------------------------------------------------------------------|

----

| ASTORIA FINANCIAL CORPORATION ANDSUBSIDIARIES                 |   |
|---------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF INCOME                        |   |
|                                                          |   |   |   |   |   |   |   |   |   |
|                                                          |   | For      the Year Ended December 31, |   |
| (In      Thousands, Except Share Data)                        |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Interest      income:                                         |   |   |   |   |   |   |   |   |   |
| Mortgage      loans:                                          |   |   |   |   |   |   |   |   |   |
| One-to-four      family                                       |   | $ | 609,724 |   |   | $ | 637,297 |   |   | $ | 587,863 |   |
| Multi-family,      commercial real                            |   |   |   |   |   |   |   |   |   |   |   |   |
| estate      and construction                                  |   |   | 217,480 |   |   |   | 234,922 |   |   |   | 254,536 |   |
| Consumer      and other loans                                 |   |   | 10,882 |   |   |   | 17,325 |   |   |   | 30,178 |   |
| Mortgage-backed      and other securities                     |   |   | 149,655 |   |   |   | 185,160 |   |   |   | 219,040 |   |
| Federal      funds sold, repurchase agreements and            |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-earning      cash accounts                           |   |   | 448 |   |   |   | 1,939 |   |   |   | 2,071 |   |
| Federal      Home Loan Bank of New York stock                 |   |   | 9,352 |   |   |   | 13,068 |   |   |   | 11,634 |   |
| Total      interest income                                    |   |   | 997,541 |   |   |   | 1,089,711 |   |   |   | 1,105,322 |   |
| Interest      expense:                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                      |   |   | 315,371 |   |   |   | 393,897 |   |   |   | 456,039 |   |
| Borrowings                                                    |   |   | 253,401 |   |   |   | 300,430 |   |   |   | 315,755 |   |
| Total      interest expense                                   |   |   | 568,772 |   |   |   | 694,327 |   |   |   | 771,794 |   |
| Net      interest income                                      |   |   | 428,769 |   |   |   | 395,384 |   |   |   | 333,528 |   |
| Provision      for loan losses                                |   |   | 200,000 |   |   |   | 69,000 |   |   |   | 2,500 |   |
| Net      interest income after provision for loan losses      |   |   | 228,769 |   |   |   | 326,384 |   |   |   | 331,028 |   |
| Non-interest      income:                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Customer      service fees                                    |   |   | 57,887 |   |   |   | 62,489 |   |   |   | 62,961 |   |
| Other      loan fees                                          |   |   | 3,918 |   |   |   | 3,985 |   |   |   | 4,739 |   |
| Gain      on sales of securities                              |   |   | 7,426 |   |   |   | - |   |   |   | 2,208 |   |
| Other-than-temporary      impairment write-down of securities |   |   | (5,300 | ) |   |   | (77,696 | ) |   |   | (20,484 | ) |
| Mortgage      banking income (loss), net                      |   |   | 5,567 |   |   |   | (413 | ) |   |   | 1,348 |   |
| Income      from bank owned life insurance                    |   |   | 8,950 |   |   |   | 16,733 |   |   |   | 17,109 |   |
| Other                                                         |   |   | 1,353 |   |   |   | 6,082 |   |   |   | 7,909 |   |
| Total      non-interest income                                |   |   | 79,801 |   |   |   | 11,180 |   |   |   | 75,790 |   |
| Non-interest      expense:                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative:                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation      and benefits                                |   |   | 133,318 |   |   |   | 124,846 |   |   |   | 124,036 |   |
| Occupancy,      equipment and systems                         |   |   | 64,685 |   |   |   | 66,553 |   |   |   | 65,754 |   |
| Federal      deposit insurance premiums                       |   |   | 24,300 |   |   |   | 2,213 |   |   |   | 1,595 |   |
| Federal      deposit insurance special assessment             |   |   | 9,851 |   |   |   | - |   |   |   | - |   |
| Advertising                                                   |   |   | 5,404 |   |   |   | 7,116 |   |   |   | 6,563 |   |
| Other                                                         |   |   | 32,498 |   |   |   | 32,532 |   |   |   | 33,325 |   |
| Total      non-interest expense                               |   |   | 270,056 |   |   |   | 233,260 |   |   |   | 231,273 |   |
| Income      before income tax expense                         |   |   | 38,514 |   |   |   | 104,304 |   |   |   | 175,545 |   |
| Income      tax expense                                       |   |   | 10,830 |   |   |   | 28,962 |   |   |   | 50,723 |   |
| Net      income                                               |   | $ | 27,684 |   |   | $ | 75,342 |   |   | $ | 124,822 |   |
| Basic      earnings per common share                          |   | $ | 0.30 |   |   | $ | 0.83 |   |   | $ | 1.37 |   |
| Diluted      earnings per common share                        |   | $ | 0.30 |   |   | $ | 0.82 |   |   | $ | 1.35 |   |
| Basic      weighted average common shares                     |   |   | 90,593,060 |   |   |   | 89,580,322 |   |   |   | 90,490,118 |   |
| Diluted      weighted average common and                      |   |   |   |   |   |   |   |   |   |   |   |   |
| common      equivalent shares                                 |   |   | 90,602,189 |   |   |   | 90,406,527 |   |   |   | 91,958,723 |   |

| See      accompanying Notes to Consolidated Financial  Statements. |
|--------------------------------------------------------------------|

----

| ASTORIA FINANCIAL CORPORATION AND  SUBSIDIARIES                 |
|-----------------------------------------------------------------|
| CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY |
| FOR      THE YEARS ENDED DECEMBER 31, 2009, 2008 and2007        |

|                                                   |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       | Accumulated   |   |        | UnallocatedCommon |   |
|--------------------------------------------------------|--------|-------------|-----------|--------|--------------|--------|--------|---------------|--------|--------|----------------|--------|--------|----------------------|-----------|--------|---------------------|--------|------------|-------------------------|--------|-------------|-------------------|--------|
|                                                   |   |        |      |   |         |   |   | Additional    |   |   |           |   |   |                 |      |   |                |   | Other      |                    |   | Stock  |              |
|                                                   |   |        |      |   | Common  |   |   | Paid-in       |   |   | Retained       |   |   | Treasury   |      |   | Comprehensive  |   |       | Held               |   |
| (In      Thousands, Except Share Data)                 |   | Total  |      |   | Stock        |   |   | Capital  |   |   | Earnings  |   |   | Stock           |      |   | Loss           |   |       | by      ESOP       |   |
|                                                   |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Balance      at December 31, 2006                      |   | $           | 1,215,754 |   |         | $      | 1,665  |          |   | $      | 828,940        |   |   | $                    | 1,856,528 |   |                | $      | (1,390,495 | )                       |   | $           | (58,330           | )      |   | $ | (22,554 | ) |
|                                                   |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Adjustment      upon adoption of BOLI related          |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| accounting      guidance                               |   |        | (509      | )      |         |   | -      |          |   |   | -              |   |   |                 | (509      | )      |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Comprehensive      income:                             |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Net      income                                        |   |        | 124,822   |   |         |   | -      |          |   |   | -              |   |   |                 | 124,822   |   |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Other      comprehensive income, net of tax            |   |        | 18,854    |   |         |   | -      |          |   |   | -              |   |   |                 | -         |   |                |   | -          |                    |   |        | 18,854            |   |   |   | - |   |
| Comprehensive      income                              |   |        | 143,676   |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Common      stock repurchased (3,005,000 shares)       |   |        | (80,055   | )      |         |   | -      |          |   |   | -              |   |   |                 | -         |   |                |   | (80,055    | )                       |   |        | -                 |   |   |   | - |   |
| Dividends      on common stock ($1.04 per share)       |   |        | (95,176   | )      |         |   | -      |          |   |   | -              |   |   |                 | (95,176   | )      |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Exercise      of stock options and related tax         |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| benefit      (530,424 shares issued)                   |   |        | 11,318    |   |         |   | -      |          |   |   | 2,148          |   |   |                 | (1,685    | )      |                |   | 10,855     |                    |   |        | -                 |   |   |   | - |   |
| Forfeitures      of restricted stock (8,689 shares)    |   |        | 10        |   |         |   | -      |          |   |   | 258            |   |   |                 | (78       | )      |                |   | (170       | )                       |   |        | -                 |   |   |   | - |   |
| Stock-based      compensation and allocation           |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| of      ESOP stock                                     |   |        | 16,326    |   |         |   | -      |          |   |   | 14,881         |   |   |                 | -         |   |                |   | -          |                    |   |        | -                 |   |   |   | 1,445 |   |
| Balance      at December 31, 2007                      |   |        | 1,211,344 |   |         |   | 1,665  |          |   |   | 846,227        |   |   |                 | 1,883,902 |   |                |   | (1,459,865 | )                       |   |        | (39,476           | )      |   |   | (21,109 | ) |
|                                                   |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Comprehensive      income:                             |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Net      income                                        |   |        | 75,342    |   |         |   | -      |          |   |   | -              |   |   |                 | 75,342    |   |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Other      comprehensive loss, net of tax              |   |        | (22,389   | )      |         |   | -      |          |   |   | -              |   |   |                 | -         |   |                |   | -          |                    |   |        | (22,389           | )      |   |   | - |   |
| Comprehensive      income                              |   |        | 52,953    |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Common      stock repurchased (755,000 shares)         |   |        | (18,090   | )      |         |   | -      |          |   |   | -              |   |   |                 | -         |   |                |   | (18,090    | )                       |   |        | -                 |   |   |   | - |   |
| Dividends      on common stock ($1.04 per share)       |   |        | (93,500   | )      |         |   | -      |          |   |   | 311            |   |   |                 | (93,811   | )      |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Exercise      of stock options and related tax benefit |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| (524,618      shares issued)                           |   |        | 9,404     |   |         |   | -      |          |   |   | 1,362          |   |   |                 | (2,795    | )      |                |   | 10,837     |                    |   |        | -                 |   |   |   | - |   |
| Restricted      stock grants (394,840 shares)          |   |        | -         |   |         |   | -      |          |   |   | (9,839         | )      |   |                 | 1,693     |   |                |   | 8,146      |                    |   |        | -                 |   |   |   | - |   |
| Tax      benefit shortfall on vested restricted stock  |   |        | (6        | )      |         |   | -      |          |   |   | (6             | )      |   |                 | -         |   |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Forfeitures      of restricted stock (11,888 shares)   |   |        | 17        |   |         |   | -      |          |   |   | 330            |   |   |                 | (74       | )      |                |   | (239       | )                       |   |        | -                 |   |   |   | - |   |
| Stock-based      compensation and allocation           |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| of      ESOP stock                                     |   |        | 19,647    |   |         |   | -      |          |   |   | 17,636         |   |   |                 | -         |   |                |   | -          |                    |   |        | -                 |   |   |   | 2,011 |   |
| Balance      at December 31, 2008                      |   |        | 1,181,769 |   |         |   | 1,665  |          |   |   | 856,021        |   |   |                 | 1,864,257 |   |                |   | (1,459,211 | )                       |   |        | (61,865           | )      |   |   | (19,098 | ) |
|                                                   |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Comprehensive      income:                             |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Net      income                                        |   |        | 27,684    |   |         |   | -      |          |   |   | -              |   |   |                 | 27,684    |   |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Other      comprehensive income, net of tax            |   |        | 32,086    |   |         |   | -      |          |   |   | -              |   |   |                 | -         |   |                |   | -          |                    |   |        | 32,086            |   |   |   | - |   |
| Comprehensive      income                              |   |        | 59,770    |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| Dividends      on common stock ($0.52 per share)       |   |        | (47,432   | )      |         |   | -      |          |   |   | 326            |   |   |                 | (47,758   | )      |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Exercise      of stock options and related tax benefit |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| (51,233      shares issued)                            |   |        | 612       |   |         |   | -      |          |   |   | 34             |   |   |                 | (480      | )      |                |   | 1,058      |                    |   |        | -                 |   |   |   | - |   |
| Restricted      stock grants (1,174,232 shares)        |   |        | -         |   |         |   | -      |          |   |   | (9,629         | )      |   |                 | (14,636   | )      |                |   | 24,265     |                    |   |        | -                 |   |   |   | - |   |
| Tax      benefit shortfall on stock-based compensation |   |        | (762      | )      |         |   | -      |          |   |   | (762           | )      |   |                 | -         |   |                |   | -          |                    |   |        | -                 |   |   |   | - |   |
| Forfeitures      of restricted stock (22,990 shares)   |   |        | 17        |   |         |   | -      |          |   |   | 359            |   |   |                 | 132       |   |                |   | (474       | )                       |   |        | -                 |   |   |   | - |   |
| Stock-based      compensation and allocation           |   |        |      |   |         |   |   |          |   |   |           |   |   |                 |      |   |                |   |       |                    |   |        |              |   |   |   |   |   |
| of      ESOP stock                                     |   |        | 14,640    |   |         |   | -      |          |   |   | 11,313         |   |   |                 | -         |   |                |   | -          |                    |   |        | -                 |   |   |   | 3,327 |   |
| Balance      at December 31, 2009                      |   | $           | 1,208,614 |   |         | $      | 1,665  |          |   | $      | 857,662        |   |   | $                    | 1,829,199 |   |                | $      | (1,434,362 | )                       |   | $           | (29,779           | )      |   | $ | (15,771 | ) |

| See      accompanying Notes to Consolidated Financial  Statements. |
|--------------------------------------------------------------------|

----

| ASTORIA FINANCIAL CORPORATION ANDSUBSIDIARIES                                               |   |
|---------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                  |   |
|                                                                                        |   |
|                                                                                        |   | For      the Year Ended December 31, |   |
| (In      Thousands)                                                                         |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Cash      flows from operating activities:                                                  |   |   |   |   |   |   |   |   |   |
| Net      income                                                                             |   | $ | 27,684 |   |   | $ | 75,342 |   |   | $ | 124,822 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      premium amortization on mortgage loans and mortgage backed      securities         |   |   | 29,418 |   |   |   | 25,239 |   |   |   | 17,023 |   |
| Net      amortization of deferred costs on consumer and otherloans,                         |   |   |   |   |   |   |   |   |   |   |   |   |
| other      securities and borrowings                                                        |   |   | 2,454 |   |   |   | 2,845 |   |   |   | 3,780 |   |
| Net      provision for loan and real estate losses                                          |   |   | 201,297 |   |   |   | 71,695 |   |   |   | 2,993 |   |
| Depreciation      and amortization                                                          |   |   | 11,003 |   |   |   | 12,907 |   |   |   | 13,384 |   |
| Net      gain on sales of loans and securities                                              |   |   | (14,142 | ) |   |   | (1,346 | ) |   |   | (3,939 | ) |
| Other-than-temporary      impairment write-down of securities                               |   |   | 5,300 |   |   |   | 77,696 |   |   |   | 20,484 |   |
| Lower      of cost or market write-down of assets held-for-sale                             |   |   | 3,864 |   |   |   | - |   |   |   | - |   |
| Originations      of loans held-for-sale                                                    |   |   | (412,400 | ) |   |   | (136,211 | ) |   |   | (205,538 | ) |
| Proceeds      from sales and principal repayments of loans held-for-sale                    |   |   | 391,427 |   |   |   | 137,770 |   |   |   | 216,126 |   |
| Stock-based      compensation and allocation of ESOP stock                                  |   |   | 14,657 |   |   |   | 19,664 |   |   |   | 16,336 |   |
| Decrease      (increase) in accrued interest receivable                                     |   |   | 13,468 |   |   |   | (457 | ) |   |   | (371 | ) |
| Mortgage      servicing rights amortization and valuation allowance adjustments,      net   |   |   | 3,920 |   |   |   | 5,559 |   |   |   | 4,427 |   |
| Bank      owned life insurance income and insurance proceeds received,      net             |   |   | (455 | ) |   |   | (3,000 | ) |   |   | (12,837 | ) |
| (Increase)      decrease in other assets                                                    |   |   | (139,738 | ) |   |   | (60,933 | ) |   |   | 5,897 |   |
| Increase      in accrued expenses and other liabilities                                     |   |   | 30,519 |   |   |   | 9,092 |   |   |   | 5,257 |   |
| Net      cash provided by operating activities                                              |   |   | 168,276 |   |   |   | 235,862 |   |   |   | 207,844 |   |
| Cash      flows from investing activities:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Originations      of loans receivable                                                       |   |   | (2,904,338 | ) |   |   | (3,880,451 | ) |   |   | (3,830,671 | ) |
| Loan      purchases through third parties                                                   |   |   | (393,558 | ) |   |   | (483,035 | ) |   |   | (411,644 | ) |
| Principal      payments on loans receivable                                                 |   |   | 3,938,111 |   |   |   | 3,691,325 |   |   |   | 3,011,822 |   |
| Proceeds      from sales of delinquent and non-performing loans                             |   |   | 52,505 |   |   |   | 15,455 |   |   |   | 10,412 |   |
| Purchases      of securities held-to-maturity                                               |   |   | (706,630 | ) |   |   | (166,549 | ) |   |   | - |   |
| Purchases      of securities available-for-sale                                             |   |   | - |   |   |   | (322,285 | ) |   |   | - |   |
| Principal      payments on securities held-to-maturity                                      |   |   | 1,036,933 |   |   |   | 578,673 |   |   |   | 723,257 |   |
| Principal      payments on securities available-for-sale                                    |   |   | 357,515 |   |   |   | 202,818 |   |   |   | 245,871 |   |
| Proceeds      from sales of securities available-for-sale                                   |   |   | 211,553 |   |   |   | - |   |   |   | 2,434 |   |
| Net      redemptions (purchases) of Federal Home Loan Bank of New York      stock           |   |   | 32,971 |   |   |   | (10,410 | ) |   |   | (47,850 | ) |
| Proceeds      from sales of real estate owned, net                                          |   |   | 49,785 |   |   |   | 21,334 |   |   |   | 1,888 |   |
| Purchases      of premises and equipment, net of proceeds from sales                        |   |   | (8,958 | ) |   |   | (13,172 | ) |   |   | (7,716 | ) |
| Net      cash provided by (used in) investing activities                                    |   |   | 1,665,889 |   |   |   | (366,297 | ) |   |   | (302,197 | ) |
| Cash      flows from financing activities:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      (decrease) increase in deposits                                                    |   |   | (667,686 | ) |   |   | 430,486 |   |   |   | (174,586 | ) |
| Net      (decrease) increase in borrowings with original terms of three months or      less |   |   | (723,000 | ) |   |   | 230,000 |   |   |   | 18,000 |   |
| Proceeds      from borrowings with original terms greater than three    months              |   |   | 235,000 |   |   |   | 1,650,000 |   |   |   | 3,200,000 |   |
| Repayments      of borrowings with original terms greater than threemonths                  |   |   | (600,000 | ) |   |   | (2,100,000 | ) |   |   | (2,870,000 | ) |
| Net      (decrease) increase in mortgage escrow funds                                       |   |   | (19,620 | ) |   |   | 4,244 |   |   |   | (2,668 | ) |
| Common      stock repurchased                                                               |   |   | - |   |   |   | (18,090 | ) |   |   | (80,055 | ) |
| Cash      dividends paid to stockholders                                                    |   |   | (47,758 | ) |   |   | (93,811 | ) |   |   | (95,176 | ) |
| Cash      received for options exercised                                                    |   |   | 578 |   |   |   | 8,042 |   |   |   | 9,170 |   |
| Tax      benefit (shortfall) excess from share-based payment arrangements,      net         |   |   | (402 | ) |   |   | 1,667 |   |   |   | 2,148 |   |
| Net      cash (used in) provided by financing activities                                    |   |   | (1,822,888 | ) |   |   | 112,538 |   |   |   | 6,833 |   |
| Net      increase (decrease) in cash and cash equivalents                                   |   |   | 11,277 |   |   |   | (17,897 | ) |   |   | (87,520 | ) |
| Cash      and cash equivalents at beginning of year                                         |   |   | 100,293 |   |   |   | 118,190 |   |   |   | 205,710 |   |
| Cash      and cash equivalents at end of year                                               |   | $ | 111,570 |   |   | $ | 100,293 |   |   | $ | 118,190 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosures:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      paid during the year:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                    |   | $ | 568,025 |   |   | $ | 703,905 |   |   | $ | 766,769 |   |
| Income      taxes                                                                           |   | $ | 60,335 |   |   | $ | 80,325 |   |   | $ | 54,607 |   |
| Additions      to real estate owned                                                         |   | $ | 71,821 |   |   | $ | 40,395 |   |   | $ | 10,869 |   |
| Loans      transferred to held-for-sale                                                     |   | $ | 60,646 |   |   | $ | 15,455 |   |   | $ | 10,412 |   |

| See      accompanying Notes to Consolidated Financial  Statements. |
|--------------------------------------------------------------------|

----

ASTORIA FINANCIAL CORPORATION AND SUBSIDIARIES

| (1) | Summary      of Significant Accounting Policies |
|-----|-------------------------------------------------|

| (a) | Basis      of Presentation |
|-----|----------------------------|

| (b) | Cash      and Cash Equivalents |
|-----|--------------------------------|

| (c) | Repurchase      Agreements (Securities Purchased Under Agreements to    Resell) |
|-----|---------------------------------------------------------------------------------|

----

| (d) | Securities |
|-----|------------|

| (e) | Federal      Home Loan Bank of New York Stock |
|-----|-----------------------------------------------|

| (f) | Loans      Held-for-Sale |
|-----|--------------------------|

----

| (g) | Loans      Receivable and Allowance for LoanLosses |
|-----|----------------------------------------------------|

----

| (h) | Mortgage      Servicing Rights |
|-----|--------------------------------|

| (i) | Premises      and Equipment |
|-----|-----------------------------|

| (j) | Goodwill |
|-----|----------|

----

| (k) | Bank      Owned Life Insurance |
|-----|--------------------------------|

| (l) | Real      Estate Owned |
|-----|------------------------|

| (m) | Reverse      Repurchase Agreements (Securities Sold Under Agreements to      Repurchase) |
|-----|------------------------------------------------------------------------------------------|

| (n) | Derivative      Instruments |
|-----|-----------------------------|

----

| (o) | Income      Taxes |
|-----|-------------------|

| (p) | Earnings      Per Share |
|-----|-------------------------|

| (q) | Employee      Benefits |
|-----|------------------------|

----

| (r) | Stock      Incentive Plans |
|-----|----------------------------|

| (s) | Segment      Reporting |
|-----|------------------------|

| (t) | Impact      of Recent Accounting Standards and  Interpretations |
|-----|-----------------------------------------------------------------|

----

| (2) | Repurchase      Agreements |
|-----|----------------------------|

| (3) | Securities |
|-----|------------|

|                                                  |   | At      December 31, 2009 |      |
|-------------------------------------------------------|--------|---------------------------|-----------|
|                                                  |   |                      |      |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                                  |   | Amortized                 |      |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| (In      Thousands)                                   |   | Cost                      |      |   | Gains |   |   | Losses |   |   | Value |   |
| Available-for-sale:                                   |   |                      |      |   |   |   |   |   |   |   |   |   |
| Residential      mortgage-backed securities:          |   |                      |      |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs (1)                 |   | $                         | 777,098   |   |   | $ | 19,157 |   |   | $ | (15 | ) |   | $ | 796,240 |   |
| Non-GSE      issuance REMICs and CMOs                 |   |                      | 27,165    |   |   |   | 3 |   |   |   | (899 | ) |   |   | 26,269 |   |
| GSE      pass-through certificates                    |   |                      | 33,441    |   |   |   | 941 |   |   |   | (7 | ) |   |   | 34,375 |   |
| Total      residential mortgage-backed securities     |   |                      | 837,704   |   |   |   | 20,101 |   |   |   | (921 | ) |   |   | 856,884 |   |
| Freddie      Mac preferred stock                      |   |                      | -         |   |   |   | 3,784 |   |   |   | - |   |   |   | 3,784 |   |
| Other      securities                                 |   |                      | 40        |   |   |   | - |   |   |   | (14 | ) |   |   | 26 |   |
| Total      securities available-for-sale              |   | $                         | 837,744   |   |   | $ | 23,885 |   |   | $ | (935 | ) |   | $ | 860,694 |   |
| Held-to-maturity:                                     |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      mortgage-backed securities:          |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs                     |   | $                         | 1,979,296 |   |   | $ | 50,387 |   |   | $ | - |   |   | $ | 2,029,683 |   |
| Non-GSE      issuance REMICs and CMOs                 |   |                      | 82,014    |   |   |   | 33 |   |   |   | (2,214 | ) |   |   | 79,833 |   |
| GSE      pass-through certificates                    |   |                      | 1,097     |   |   |   | 66 |   |   |   | - |   |   |   | 1,163 |   |
| Total      residential mortgage-backed securities     |   |                      | 2,062,407 |   |   |   | 50,486 |   |   |   | (2,214 | ) |   |   | 2,110,679 |   |
| Obligations      of U.S. government and GSEs          |   |                      | 250,955   |   |   |   | 1,363 |   |   |   | - |   |   |   | 252,318 |   |
| Obligations      of states and political subdivisions |   |                      | 4,523     |   |   |   | - |   |   |   | - |   |   |   | 4,523 |   |
| Total      securities held-to-maturity                |   | $                         | 2,317,885 |   |   | $ | 51,849 |   |   | $ | (2,214 | ) |   | $ | 2,367,520 |   |

| (1) | Real      estate mortgage investment conduits and collateralized mortgage      obligations. |
|-----|---------------------------------------------------------------------------------------------|

----

|                                                  |   | At      December 31, 2008 |      |
|-------------------------------------------------------|--------|---------------------------|-----------|
|                                                  |   |                      |      |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                                  |   | Amortized                 |      |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| (In      Thousands)                                   |   | Cost                      |      |   | Gains |   |   | Losses |   |   | Value |   |
| Available-for-sale:                                   |   |                      |      |   |   |   |   |   |   |   |   |   |
| Residential      mortgage-backed securities:          |   |                      |      |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs                     |   | $                         | 1,324,004 |   |   | $ | 8,642 |   |   | $ | (13,470 | ) |   | $ | 1,319,176 |   |
| Non-GSE      issuance REMICs and CMOs                 |   |                      | 33,795    |   |   |   | - |   |   |   | (4,355 | ) |   |   | 29,440 |   |
| GSE      pass-through certificates                    |   |                      | 40,383    |   |   |   | 487 |   |   |   | (204 | ) |   |   | 40,666 |   |
| Total      residential mortgage-backed securities     |   |                      | 1,398,182 |   |   |   | 9,129 |   |   |   | (18,029 | ) |   |   | 1,389,282 |   |
| Freddie      Mac preferred stock                      |   |                      | 5,300     |   |   |   | - |   |   |   | (4,168 | ) |   |   | 1,132 |   |
| Other      securities                                 |   |                      | 40        |   |   |   | - |   |   |   | (14 | ) |   |   | 26 |   |
| Total      securities available-for-sale              |   | $                         | 1,403,522 |   |   | $ | 9,129 |   |   | $ | (22,211 | ) |   | $ | 1,390,440 |   |
| Held-to-maturity:                                     |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential      mortgage-backed securities:          |   |                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs                     |   | $                         | 2,451,155 |   |   | $ | 16,119 |   |   | $ | (2,200 | ) |   | $ | 2,465,074 |   |
| Non-GSE      issuance REMICs and CMOs                 |   |                      | 188,473   |   |   |   | - |   |   |   | (16,887 | ) |   |   | 171,586 |   |
| GSE      pass-through certificates                    |   |                      | 1,558     |   |   |   | 61 |   |   |   | - |   |   |   | 1,619 |   |
| Total      residential mortgage-backed securities     |   |                      | 2,641,186 |   |   |   | 16,180 |   |   |   | (19,087 | ) |   |   | 2,638,279 |   |
| Obligations      of states and political subdivisions |   |                      | 5,676     |   |   |   | - |   |   |   | - |   |   |   | 5,676 |   |
| Total      securities held-to-maturity                |   | $                         | 2,646,862 |   |   | $ | 16,180 |   |   | $ | (19,087 | ) |   | $ | 2,643,955 |   |

|                                      |   | At      December 31, 2009         |   |
|-------------------------------------------|--------|-----------------------------------|--------|
|                                      |   | Less      Than Twelve      Months |   |   | Twelve      Months or      Longer |   |   | Total |   |
|                                      |   |                              |   |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                                      |   | Estimated                         |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
| (In      Thousands)                       |   | Fair      Value                   |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| Available-for-sale:                       |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs         |   | $                                 | 1,489  |   |   | $ | (15 | ) |   | $ | - |   |   | $ | - |   |   | $ | 1,489 |   |   | $ | (15 | ) |
| Non-GSE      issuance REMICs and CMOs     |   |                              | 549    |   |   |   | (54 | ) |   |   | 25,557 |   |   |   | (845 | ) |   |   | 26,106 |   |   |   | (899 | ) |
| GSE      pass-through certificates        |   |                              | 1,309  |   |   |   | (4 | ) |   |   | 377 |   |   |   | (3 | ) |   |   | 1,686 |   |   |   | (7 | ) |
| Other      securities                     |   |                              | -      |   |   |   | - |   |   |   | 1 |   |   |   | (14 | ) |   |   | 1 |   |   |   | (14 | ) |
| Total      temporarily impairedsecurities |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available-for-sale                        |   | $                                 | 3,347  |   |   | $ | (73 | ) |   | $ | 25,935 |   |   | $ | (862 | ) |   | $ | 29,282 |   |   | $ | (935 | ) |
| Total      temporarily impairedsecurities |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| held-to-maturity:                         |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-GSE      issuance REMICs and CMOs     |   | $                                 | -      |   |   | $ | - |   |   | $ | 70,589 |   |   | $ | (2,214 | ) |   | $ | 70,589 |   |   | $ | (2,214 | ) |

----

|                                       |   | At      December 31, 2008    |    |
|--------------------------------------------|--------|------------------------------|---------|
|                                       |   | Less      Than Twelve Months |    |   | Twelve      Months or Longer |   |   | Total |   |
|                                       |   |                         |    |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                                       |   | Estimated                    |    |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |   | Estimated  |   |   | Unrealized |   |
| (In      Thousands)                        |   | Fair      Value              |    |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| Available-for-sale:                        |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs          |   | $                            | 167,797 |   |   | $ | (499 | ) |   | $ | 537,772 |   |   | $ | (12,971 | ) |   | $ | 705,569 |   |   | $ | (13,470 | ) |
| Non-GSE      issuance REMICs and CMOs      |   |                         | 962     |   |   |   | (50 | ) |   |   | 28,205 |   |   |   | (4,305 | ) |   |   | 29,167 |   |   |   | (4,355 | ) |
| GSE      pass-through certificates         |   |                         | 18,013  |   |   |   | (169 | ) |   |   | 1,389 |   |   |   | (35 | ) |   |   | 19,402 |   |   |   | (204 | ) |
| Freddie      Mac preferred stock           |   |                         | 1,132   |   |   |   | (4,168 | ) |   |   | - |   |   |   | - |   |   |   | 1,132 |   |   |   | (4,168 | ) |
| Other      securities                      |   |                         | 1       |   |   |   | (13 | ) |   |   | 1 |   |   |   | (1 | ) |   |   | 2 |   |   |   | (14 | ) |
| Total      temporarily impaired securities |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available-for-sale                         |   | $                            | 187,905 |   |   | $ | (4,899 | ) |   | $ | 567,367 |   |   | $ | (17,312 | ) |   | $ | 755,272 |   |   | $ | (22,211 | ) |
| Held-to-maturity:                          |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GSE      issuance REMICs and CMOs          |   | $                            | 357,335 |   |   | $ | (1,202 | ) |   | $ | 95,249 |   |   | $ | (998 | ) |   | $ | 452,584 |   |   | $ | (2,200 | ) |
| Non-GSE      issuance REMICs and CMOs      |   |                         | 75,830  |   |   |   | (1,991 | ) |   |   | 95,733 |   |   |   | (14,896 | ) |   |   | 171,563 |   |   |   | (16,887 | ) |
| Total      temporarily impaired securities |   |                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| held-to-maturity                           |   | $                            | 433,165 |   |   | $ | (3,193 | ) |   | $ | 190,982 |   |   | $ | (15,894 | ) |   | $ | 624,147 |   |   | $ | (19,087 | ) |

----

|                                        |   | At December 31,      2009 |    |
|---------------------------------------------|--------|---------------------------|---------|
|                                        |   |                      |    |   | Estimated |   |
|                                        |   | Amortized                 |    |   | Fair |   |
| (In      Thousands)                         |   | Cost                      |    |   | Value |   |
| Available-for-sale:                         |   |                      |    |   |   |   |
| Due in one year or      less                |   | $                         | 25      |   |   | $ | 25 |   |
| Total      available-for-sale               |   | $                         | 25      |   |   | $ | 25 |   |
| Held-to-maturity:                           |   |                      |    |   |   |   |   |   |
| Due after one year through five      years  |   | $                         | 250,955 |   |   | $ | 252,318 |   |
| Due after five years through      ten years |   |                      | 4,523   |   |   |   | 4,523 |   |
| Total      held-to-maturity                 |   | $                         | 255,478 |   |   | $ | 256,841 |   |

| (4) | Non-performing      Loans Held-for-Sale |
|-----|-----------------------------------------|

----

| (5) | Loans      Receivable |
|-----|-----------------------|

|                                     |   | At December      31, |       |
|------------------------------------------|--------|----------------------|------------|
| (In      Thousands)                      |   | 2009                 |       |   | 2008 |   |
| Mortgage      loans:                     |   |                 |       |   |   |   |
| One-to-four      family                  |   | $                    | 11,895,362 |   |   | $ | 12,349,617 |   |
| Multi-family                             |   |                 | 2,559,058  |   |   |   | 2,911,733 |   |
| Commercial real      estate              |   |                 | 866,804    |   |   |   | 941,057 |   |
| Construction                             |   |                 | 23,599     |   |   |   | 56,829 |   |
|                                     |   |                 | 15,344,823 |   |   |   | 16,259,236 |   |
| Net unamortized premiums      and        |   |                 |       |   |   |   |   |   |
| deferred loan origination      costs     |   |                 | 102,292    |   |   |   | 113,147 |   |
| Total mortgage loans,      net           |   |                 | 15,447,115 |   |   |   | 16,372,383 |   |
| Consumer and other      loans:           |   |                 |       |   |   |   |   |   |
| Home    equity                           |   |                 | 302,410    |   |   |   | 307,831 |   |
| Commercial                               |   |                 | 13,588     |   |   |   | 13,331 |   |
| Other                                    |   |                 | 14,020     |   |   |   | 14,216 |   |
|                                     |   |                 | 330,018    |   |   |   | 335,378 |   |
| Net unamortized premiums      and        |   |                 |       |   |   |   |   |   |
| deferred loan origination      costs     |   |                 | 3,589      |   |   |   | 4,683 |   |
| Total consumer and other loans,      net |   |                 | 333,607    |   |   |   | 340,061 |   |
| Total    loans                           |   |                 | 15,780,722 |   |   |   | 16,712,444 |   |
| Allowance for loan      losses           |   |                 | (194,049   | ) |   |   | (119,029 | ) |
| Loans receivable,      net               |   | $                    | 15,586,673 |   |   | $ | 16,593,415 |   |

----

|                                               |   | At December      31, |       |
|----------------------------------------------------|--------|----------------------|------------|
|                                               |   | 2009                 |       |   | 2008 |   |
|                                               |   |                 |       |   | Percent |   |   |   |   |   | Percent |   |
| (Dollars in      Thousands)                        |   | Amount               |       |   | of Total |   |   | Amount |   |   | of Total |   |
| One-to-four      family:                           |   |                 |       |   |   |   |   |   |   |   |   |   |
| Full documentation      interest-only (1)          |   | $                    | 4,688,796  |   |   |   | 39.42 | % |   | $ | 5,501,989 |   |   |   | 44.55 | % |
| Full documentation      amortizing                 |   |                 | 5,152,021  |   |   |   | 43.31 |   |   |   | 4,389,618 |   |   |   | 35.54 |   |
| Reduced documentation      interest-only (1) (2)   |   |                 | 1,576,378  |   |   |   | 13.25 |   |   |   | 1,911,160 |   |   |   | 15.48 |   |
| Reduced documentation      amortizing (2)          |   |                 | 478,167    |   |   |   | 4.02 |   |   |   | 546,850 |   |   |   | 4.43 |   |
| Total one-to-four      family                      |   | $                    | 11,895,362 |   |   |   | 100.00 | % |   | $ | 12,349,617 |   |   |   | 100.00 | % |
| Multi-family and commercial      real estate:      |   |                 |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full documentation      amortizing                 |   | $                    | 2,861,607  |   |   |   | 83.53 | % |   | $ | 3,146,103 |   |   |   | 81.66 | % |
| Full documentation      interest-only              |   |                 | 564,255    |   |   |   | 16.47 |   |   |   | 706,687 |   |   |   | 18.34 |   |
| Total multi-family and      commercial real estate |   | $                    | 3,425,862  |   |   |   | 100.00 | % |   | $ | 3,852,790 |   |   |   | 100.00 | % |

| (1) | Includes      interest-only hybrid ARM loans which were underwritten at the initial note      rate, which may have been a discounted rate, totaling $3.50 billion at      December 31, 2009 and $4.41 billion at December 31,  2008. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      SISA loans totaling $310.7 million at December 31, 2009 and $359.2 million      at December 31, 2008 and Super Streamline loans totaling $28.4 million at      December 31, 2009 and $36.9 million at December 31,  2008. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | At December      31, |    |
|----------------------------------------------|--------|----------------------|---------|
|                                         |   | 2009                 |    |   | 2008 |   |
|                                         |   |                 |    |   | Percent |   |   |   |   |   | Percent |   |
| (Dollars in      Thousands)                  |   | Amount               |    |   | of Total |   |   | Amount |   |   | of Total |   |
| Non-performing one-to-four      family:      |   |                 |    |   |   |   |   |   |   |   |   |   |
| Full documentation      interest-only        |   | $                    | 106,441 |   |   |   | 32.25 | % |   | $ | 50,636 |   |   |   | 28.52 | % |
| Full documentation      amortizing           |   |                 | 40,875  |   |   |   | 12.38 |   |   |   | 18,565 |   |   |   | 10.46 |   |
| Reduced documentation      interest-only     |   |                 | 158,164 |   |   |   | 47.92 |   |   |   | 92,863 |   |   |   | 52.30 |   |
| Reduced documentation      amortizing        |   |                 | 24,602  |   |   |   | 7.45 |   |   |   | 15,478 |   |   |   | 8.72 |   |
| Total non-performing      one-to-four family |   | $                    | 330,082 |   |   |   | 100.00 | % |   | $ | 177,542 |   |   |   | 100.00 | % |
| Non-performing multi-family      and         |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| commercial real      estate:                 |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full documentation      amortizing           |   | $                    | 42,637  |   |   |   | 62.51 | % |   | $ | 43,097 |   |   |   | 84.35 | % |
| Full documentation      interest-only        |   |                 | 25,571  |   |   |   | 37.49 |   |   |   | 7,995 |   |   |   | 15.65 |   |
| Total non-performing      multi-family       |   |                 |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and commercial real      estate              |   | $                    | 68,208  |   |   |   | 100.00 | % |   | $ | 51,092 |   |   |   | 100.00 | % |

----

|          |   |                  |   |   |            | Percent of      Total |   |
|---------------|--------|-----------------------|--------|--------|-----------------|-----------------------|--------|
|          |   | Percent of      Total |   |   | Non-Performing  |                  |
|          |   | One-to-Four           |   |   | One-to-Four     |                  |
| State         |   | Family    Loans       |   |   | Family    Loans |                  |
| New York      |   |                  | 25.8   | %      |            |                  |   | 12.5 | % |   |
| Illinois      |   |                  | 12.1   |   |            |                  |   | 12.6 |   |   |
| Connecticut   |   |                  | 10.1   |   |            |                  |   | 8.7 |   |   |
| California    |   |                  | 9.1    |   |            |                  |   | 15.8 |   |   |
| New    Jersey |   |                  | 7.8    |   |            |                  |   | 12.6 |   |   |
| Massachusetts |   |                  | 7.0    |   |            |                  |   | 5.1 |   |   |
| Virginia      |   |                  | 6.6    |   |            |                  |   | 4.9 |   |   |
| Maryland      |   |                  | 6.4    |   |            |                  |   | 11.5 |   |   |
| Florida       |   |                  | 2.3    |   |            |                  |   | 7.9 |   |   |

|                                      |   | At December      31, 2009 |    |
|-------------------------------------------|--------|---------------------------|---------|
|                                      |   |                      |    |   | Allowance |   |   |   |   |
|                                      |   | Recorded                  |    |   | for Loan |   |   | Net |   |
| (In      Thousands)                       |   | Investment                |    |   | Losses |   |   | Investment |   |
| One-to-four      family                   |   | $                         | 173,339 |   |   | $ | (6,154 | ) |   | $ | 167,185 |   |
| Multi-family, commercial real      estate |   |                      |    |   |   |   |   |   |   |   |   |   |
| and      construction                     |   |                      | 73,827  |   |   |   | (17,788 | ) |   |   | 56,039 |   |
| Total impaired mortgage      loans        |   | $                         | 247,166 |   |   | $ | (23,942 | ) |   | $ | 223,224 |   |

|                                      |   | At December      31, 2008 |   |
|-------------------------------------------|--------|---------------------------|--------|
|                                      |   |                      |   |   | Allowance |   |   |   |   |
|                                      |   | Recorded                  |   |   | for Loan |   |   | Net |   |
| (In      Thousands)                       |   | Investment                |   |   | Losses |   |   | Investment |   |
| One-to-four      family                   |   | $                         | 39,967 |   |   | $ | (612 | ) |   | $ | 39,355 |   |
| Multi-family, commercial real      estate |   |                      |   |   |   |   |   |   |   |   |   |   |
| and      construction                     |   |                      | 20,608 |   |   |   | (6,888 | ) |   |   | 13,720 |   |
| Total impaired mortgage      loans        |   | $                         | 60,575 |   |   | $ | (7,500 | ) |   | $ | 53,075 |   |

----

| (6) | Allowance      for Loan Losses |
|-----|--------------------------------|

|                                 |   | For the Year Ended December      31, |     |
|--------------------------------------|--------|--------------------------------------|----------|
| (In      Thousands)                  |   | 2009                                 |     |   | 2008 |   |   | 2007 |   |
| Balance at beginning of      year    |   | $                                    | 119,029  |   |   | $ | 78,946 |   |   | $ | 79,942 |   |
| Provision charged to      operations |   |                                 | 200,000  |   |   |   | 69,000 |   |   |   | 2,500 |   |
| Charge-offs:                         |   |                                 |     |   |   |   |   |   |   |   |   |   |
| One-to-four      family              |   |                                 | (83,713  | ) |   |   | (17,973 | ) |   |   | (1,407 | ) |
| Multi-family                         |   |                                 | (34,363  | ) |   |   | (9,249 | ) |   |   | (73 | ) |
| Commercial real      estate          |   |                                 | (2,666   | ) |   |   | (190 | ) |   |   | (243 | ) |
| Construction                         |   |                                 | (10,361  | ) |   |   | (1,484 | ) |   |   | (1,454 | ) |
| Consumer and other      loans        |   |                                 | (2,096   | ) |   |   | (1,258 | ) |   |   | (752 | ) |
| Total      charge-offs               |   |                                 | (133,199 | ) |   |   | (30,154 | ) |   |   | (3,929 | ) |
| Recoveries:                          |   |                                 |     |   |   |   |   |   |   |   |   |   |
| One-to-four      family              |   |                                 | 6,956    |   |   |   | 911 |   |   |   | 72 |   |
| Multi-family                         |   |                                 | 1,036    |   |   |   | 9 |   |   |   | - |   |
| Commercial real      estate          |   |                                 | 81       |   |   |   | - |   |   |   | 197 |   |
| Construction                         |   |                                 | 16       |   |   |   | 113 |   |   |   | - |   |
| Consumer and other      loans        |   |                                 | 130      |   |   |   | 204 |   |   |   | 164 |   |
| Total      recoveries                |   |                                 | 8,219    |   |   |   | 1,237 |   |   |   | 433 |   |
| Net      charge-offs                 |   |                                 | (124,980 | ) |   |   | (28,917 | ) |   |   | (3,496 | ) |
| Balance at end of      year          |   | $                                    | 194,049  |   |   | $ | 119,029 |   |   | $ | 78,946 |   |

| (7) | Mortgage      Servicing Rights |
|-----|--------------------------------|

----

|                                                           |   | For the Year Ended December      31, |   |
|----------------------------------------------------------------|--------|--------------------------------------|--------|
| (In    Thousands)                                              |   | 2009                                 |   |   | 2008 |   |   | 2007 |   |
| Carrying amount before valuation      allowance                |   |                                 |   |   |   |   |   |   |   |
| at beginning of      year                                      |   | $                                    | 16,287 |   |   | $ | 18,582 |   |   | $ | 20,665 |   |
| Additions - servicing obligations      that result from        |   |                                 |   |   |   |   |   |   |   |   |   |   |
| transfers of financial      assets                             |   |                                 | 4,554  |   |   |   | 865 |   |   |   | 1,393 |   |
| Amortization                                                   |   |                                 | (4,171 | ) |   |   | (3,160 | ) |   |   | (3,476 | ) |
| Carrying amount before valuation      allowance at end of year |   |                                 | 16,670 |   |   |   | 16,287 |   |   |   | 18,582 |   |
| Valuation allowance at beginning      of year                  |   |                                 | (8,071 | ) |   |   | (5,672 | ) |   |   | (4,721 | ) |
| Recovery of (provision for)      valuation allowance           |   |                                 | 251    |   |   |   | (2,399 | ) |   |   | (951 | ) |
| Valuation allowance at end of      year                        |   |                                 | (7,820 | ) |   |   | (8,071 | ) |   |   | (5,672 | ) |
| Net carrying amount at end of      year                        |   | $                                    | 8,850  |   |   | $ | 8,216 |   |   | $ | 12,910 |   |

|                                                        |   | For the Year Ended December      31, |   |
|-------------------------------------------------------------|--------|--------------------------------------|--------|
| (In    Thousands)                                           |   | 2009                                 |   |   | 2008 |   |   | 2007 |   |
| Loan servicing      fees                                    |   | $                                    | 3,769  |   |   | $ | 3,780 |   |   | $ | 4,045 |   |
| Net gain on sales of      loans                             |   |                                 | 5,718  |   |   |   | 1,366 |   |   |   | 1,730 |   |
| Amortization of      MSR                                    |   |                                 | (4,171 | ) |   |   | (3,160 | ) |   |   | (3,476 | ) |
| Recovery of (provision for)      valuation allowance on MSR |   |                                 | 251    |   |   |   | (2,399 | ) |   |   | (951 | ) |
| Total mortgage banking income      (loss), net              |   | $                                    | 5,567  |   |   | $ | (413 | ) |   | $ | 1,348 |   |

| (8) | Deposits |
|-----|----------|

|                          |   | At December    31, |   |   |
|-------------------------------|--------|--------------------|--------|--------|
|                          |   | 2009               |   |   |   | 2008 |   |   |
|                          |   | Weighted           |   |   |   |   |   |   |   |   |   | Weighted |   |   |   |   |   |   |   |   |
|                          |   | Average            |   |   |   |   |   | Percent |   |   | Average |   |   |   |   |   | Percent |   |
| (Dollars in      Thousands)   |   | Rate               |   |   | Balance |   |   | of Total |   |   | Rate |   |   | Balance |   |   | of Total |   |
| Core    deposits:             |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                       |   |               | 0.40   | %      |   |   | $ | 2,041,701 |   |   |   | 15.94 | % |   |   |   | 0.40 | %  |   |   | $ | 1,832,790 |   |   |   | 13.60 | %  |   |
| Moneymarket                   |   |               | 0.44   |   |   |   |   | 326,842 |   |   |   | 2.55 |   |   |   |   | 1.03 |   |   |   |   | 289,135 |   |   |   | 2.14 |   |   |
| NOW                           |   |               | 0.10   |   |   |   |   | 1,031,705 |   |   |   | 8.05 |   |   |   |   | 0.10 |   |   |   |   | 898,638 |   |   |   | 6.67 |   |   |
| Non-interest bearing      NOW |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and demand      deposit       |   |               | -      |   |   |   |   | 614,928 |   |   |   | 4.80 |   |   |   |   | - |   |   |   |   | 568,278 |   |   |   | 4.22 |   |   |
| Liquid CDs                    |   |               | 0.50   |   |   |   |   | 711,509 |   |   |   | 5.55 |   |   |   |   | 2.32 |   |   |   |   | 981,733 |   |   |   | 7.28 |   |   |
| Total core      deposits      |   |               | 0.30   |   |   |   |   | 4,726,685 |   |   |   | 36.89 |   |   |   |   | 0.74 |   |   |   |   | 4,570,574 |   |   |   | 33.91 |   |   |
| Certificates of      deposit  |   |               | 2.79   |   |   |   |   | 8,085,553 |   |   |   | 63.11 |   |   |   |   | 3.83 |   |   |   |   | 8,909,350 |   |   |   | 66.09 |   |   |
| Total    deposits             |   |               | 1.87   | %      |   |   | $ | 12,812,238 |   |   |   | 100.00 | % |   |   |   | 2.78 | % |   |   | $ | 13,479,924 |   |   |   | 100.00 | %  |   |

----

|                     |   | Weighted          |   |    |    |   |   | Percent   |   |
|--------------------------|--------|-------------------|--------|---------|---------|--------|--------|-----------|--------|
|                     |   | Average           |   |    |    |   |   | of        |   |
| Year                     |   | Rate              |   |    | Balance |   |   | Total     |   |
|                     |   | (In    Thousands) |   |    |
| 2010                     |   |              | 2.32   | %  |    |   | $      | 6,293,603 |   |   |   | 71.54 | %  |   |
| 2011                     |   |              | 3.39   |    |    |   |   | 1,080,031 |   |   |   | 12.28 |   |   |
| 2012                     |   |              | 3.15   |    |    |   |   | 975,625   |   |   |   | 11.09 |   |   |
| 2013                     |   |              | 4.06   |    |    |   |   | 177,861   |   |   |   | 2.02 |   |   |
| 2014                     |   |              | 3.12   |    |    |   |   | 268,851   |   |   |   | 3.06 |   |   |
| 2015 and      thereafter |   |              | 3.79   |    |    |   |   | 1,091     |   |   |   | 0.01 |   |   |
| Total                    |   |              | 2.60   | %  |    |   | $      | 8,797,062 |   |   |   | 100.00 | %  |   |

|                                    |   | For the Year Ended December      31, |    |
|-----------------------------------------|--------|--------------------------------------|---------|
| (In    Thousands)                       |   | 2009                                 |    |   | 2008 |   |   | 2007 |   |
| Savings                                 |   | $                                    | 7,806   |   |   | $ | 7,551 |   |   | $ | 8,126 |   |
| Moneymarket                             |   |                                 | 2,095   |   |   |   | 3,189 |   |   |   | 3,780 |   |
| Interest-bearing      NOW               |   |                                 | 1,064   |   |   |   | 1,290 |   |   |   | 951 |   |
| Liquid CDs                              |   |                                 | 10,659  |   |   |   | 36,792 |   |   |   | 73,352 |   |
| Certificates of      deposit            |   |                                 | 293,747 |   |   |   | 345,075 |   |   |   | 369,830 |   |
| Total interest expense on      deposits |   | $                                    | 315,371 |   |   | $ | 393,897 |   |   | $ | 456,039 |   |

| (9) | Borrowings |
|-----|------------|

|                               |   | At December    31, |      |   |
|------------------------------------|--------|--------------------|-----------|--------|
|                               |   | 2009               |      |   |   | 2008 |   |   |
|                               |   |               |      |   | Weighted |   |   |   |   |   | Weighted |   |
|                               |   |               |      |   | Average |   |   |   |   |   | Average |   |
| (Dollars in      Thousands)        |   | Amount             |      |   | Rate |   |   | Amount |   |   | Rate |   |
| Reverse repurchase      agreements |   | $                  | 2,500,000 |   |   |   | 4.13 | %  |   |   | $ | 2,850,000 |   |   |   | 3.68 | %  |   |
| FHLB-NY      advances              |   |               | 3,000,000 |   |   |   | 3.84 |   |   |   |   | 3,738,000 |   |   |   | 3.40 |   |   |
| Other borrowings,      net         |   |               | 377,834   |   |   |   | 7.11 |   |   |   |   | 377,274 |   |   |   | 7.11 |   |   |
| Total borrowings,      net         |   | $                  | 5,877,834 |   |   |   | 4.17 | %  |   |   | $ | 6,965,274 |   |   |   | 3.72 | %  |   |

----

|                                                   |   | At or For the Year Ended December      31, |      |
|--------------------------------------------------------|--------|--------------------------------------------|-----------|
| (Dollars in      Thousands)                            |   | 2009                                       |      |   | 2008 |   |   | 2007 |   |
| Average balance during the      year                   |   | $                                          | 2,619,178 |   |   | $ | 3,315,628 |   |   | $ | 4,106,164 |   |
| Maximum balance at any month end      during the year  |   |                                       | 2,850,000 |   |   |   | 3,730,000 |   |   |   | 4,580,000 |   |
| Balance outstanding at end of the      year            |   |                                       | 2,500,000 |   |   |   | 2,850,000 |   |   |   | 3,730,000 |   |
| Weighted average interest rate      during the year    |   |                                       | 3.96      | % |   |   | 4.05 | % |   |   | 4.23 | % |
| Weighted average interest rate at      end of the year |   |                                       | 4.13      |   |   |   | 3.68 |   |   |   | 4.45 |   |

| Year   |   | Amount            |      |
|--------|--------|-------------------|-----------|
|   |   | (In    Thousands) |      |
| 2010   |   | $                 | 400,000   |   |   |   | (1 | ) |
| 2011   |   |              | 400,000   |   |   |   |   |   |
| 2012   |   |              | 600,000   |   |   |   | (2 | ) |
| 2015   |   |              | 200,000   |   |   |   | (2 | ) |
| 2017   |   |              | 900,000   |   |   |   | (2 | ) |
| Total  |   | $                 | 2,500,000 |   |   |   |   |   |

| (1) | Includes      $100.0 million of borrowings due in 30 to 90 days and $300.0 million of      borrowings due after 90 days. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (2) | Callable      in 2010 and at various timesthereafter. |
|-----|-------------------------------------------------------|

|                                                   |   | At or For the Year Ended December      31, |      |
|--------------------------------------------------------|--------|--------------------------------------------|-----------|
| (Dollars in      Thousands)                            |   | 2009                                       |      |   | 2008 |   |   | 2007 |   |
| Average balance during the      year                   |   | $                                          | 3,054,916 |   |   | $ | 3,366,510 |   |   | $ | 2,263,874 |   |
| Maximum balance at any month end      during the year  |   |                                       | 3,509,000 |   |   |   | 4,196,000 |   |   |   | 3,061,000 |   |
| Balance outstanding at end of the      year            |   |                                       | 3,000,000 |   |   |   | 3,738,000 |   |   |   | 3,058,000 |   |
| Weighted average interest rate      during the year    |   |                                       | 3.93      | % |   |   | 3.98 | % |   |   | 4.80 | % |
| Weighted average interest rate at      end of the year |   |                                       | 3.84      |   |   |   | 3.40 |   |   |   | 4.60 |   |

| Year   |   | Amount            |      |
|--------|--------|-------------------|-----------|
|   |   | (In    Thousands) |      |
| 2010   |   | $                 | 1,140,000 |   |   |   | (1 | ) |
| 2011   |   |              | 716,000   |   |   |   | (2 | ) |
| 2012   |   |              | 294,000   |   |   |   | (3 | ) |
| 2016   |   |              | 200,000   |   |   |   | (4 | ) |
| 2017   |   |              | 650,000   |   |   |   | (4 | ) |
| Total  |   | $                 | 3,000,000 |   |   |   |   |   |

| (1) | Includes      $90.0 million of borrowings due overnight, $200.0 million of borrowings      due in 30 to 90 days and $850.0 million of borrowings due after 90      days. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      $125.0 million of borrowings which are callable in 2010 and at various      times thereafter. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (3) | Includes      $250.0 million of borrowings which are callable in 2010 and at various      times thereafter. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (4) | Callable      in 2010 and at various timesthereafter. |
|-----|-------------------------------------------------------|

----

|                                      |   | For the Year Ended December      31, |    |
|-------------------------------------------|--------|--------------------------------------|---------|
| (Dollars in      Thousands)               |   | 2009                                 |    |   | 2008 |   |   | 2007 |   |
| Reverse repurchase      agreements        |   | $                                    | 105,078 |   |   | $ | 136,655 |   |   | $ | 176,167 |   |
| FHLB-NY      advances                     |   |                                 | 120,870 |   |   |   | 135,492 |   |   |   | 109,730 |   |
| Other      borrowings                     |   |                                 | 27,453  |   |   |   | 28,283 |   |   |   | 29,858 |   |
| Total interest expense on      borrowings |   | $                                    | 253,401 |   |   | $ | 300,430 |   |   | $ | 315,755 |   |

| (10) | Stockholders'      Equity |
|------|---------------------------|

----

| (11) | Commitments      and Contingencies |
|------|------------------------------------|

| Year                   |   | Amount            |   |
|------------------------|--------|-------------------|--------|
|                   |   | (In    Thousands) |   |
| 2010                   |   | $                 | 7,274  |   |
| 2011                   |   |              | 7,074  |   |
| 2012                   |   |              | 6,628  |   |
| 2013                   |   |              | 6,436  |   |
| 2014                   |   |              | 5,907  |   |
| 2015 and    thereafter |   |              | 37,052 |   |
| Total                  |   | $                 | 70,371 |   |

|                                                        |   | At December    31, |    |
|-------------------------------------------------------------|--------|--------------------|---------|
| (In    Thousands)                                           |   | 2009               |    |   | 2008 |   |
| Mortgage    loans:                                          |   |               |    |   |   |   |
| Commitments to extend credit -      adjustable rate         |   | $                  | 333,430 |   |   | $ | 127,873 |   |
| Commitments to extend credit -      fixed rate              |   |               | 129,166 |   |   |   | 38,801 |   |
| Commitments to purchase -      adjustable rate              |   |               | 62,951  |   |   |   | 24,129 |   |
| Commitments to purchase - fixed      rate                   |   |               | 27,786  |   |   |   | 5,281 |   |
| Home equity loans - unused lines      of credit             |   |               | 242,600 |   |   |   | 280,597 |   |
| Consumer and commercial loans -      unused lines of credit |   |               | 64,209  |   |   |   | 68,520 |   |
| Commitments to sell      loans                              |   |               | 70,993  |   |   |   | 27,146 |   |

----

----

| (12) | Income      Taxes |
|------|-------------------|

|                          |   | For the Year Ended December      31, |    |
|-------------------------------|--------|--------------------------------------|---------|
| (In    Thousands)             |   | 2009                                 |    |   | 2008 |   |   | 2007 |   |
| Current                       |   |                                 |    |   |   |   |   |   |   |
| Federal                       |   | $                                    | 55,165  |   |   | $ | 78,120 |   |   | $ | 60,924 |   |
| State and    local            |   |                                 | 4,224   |   |   |   | (3,805 | ) |   |   | (319 | ) |
| Total    current              |   |                                 | 59,389  |   |   |   | 74,315 |   |   |   | 60,605 |   |
| Deferred                      |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Federal                       |   |                                 | (46,995 | ) |   |   | (45,169 | ) |   |   | (9,882 | ) |
| State and    local            |   |                                 | (1,564  | ) |   |   | (184 | ) |   |   | - |   |
| Total    deferred             |   |                                 | (48,559 | ) |   |   | (45,353 | ) |   |   | (9,882 | ) |
| Total income tax      expense |   | $                                    | 10,830  |   |   | $ | 28,962 |   |   | $ | 50,723 |   |

----

|                                                       |   | For the Year Ended December      31, |   |
|------------------------------------------------------------|--------|--------------------------------------|--------|
| (In    Thousands)                                          |   | 2009                                 |   |   | 2008 |   |   | 2007 |   |
| Expected income tax expense at      statutory federal rate |   | $                                    | 13,480 |   |   | $ | 36,506 |   |   | $ | 61,440 |   |
| State and local taxes, net of      federal tax effect      |   |                                 | 1,729  |   |   |   | (2,593 | ) |   |   | (207 | ) |
| Tax exempt income (principally on      BOLI)               |   |                                 | (3,248 | ) |   |   | (5,994 | ) |   |   | (6,789 | ) |
| Other, net                                                 |   |                                 | (1,131 | ) |   |   | 1,043 |   |   |   | (3,721 | ) |
| Total income tax      expense                              |   | $                                    | 10,830 |   |   | $ | 28,962 |   |   | $ | 50,723 |   |

|                                                              |   | At December      31, |    |
|-------------------------------------------------------------------|--------|----------------------|---------|
| (In    Thousands)                                                 |   | 2009                 |    |   | 2008 |   |
| Deferred tax      assets:                                         |   |                 |    |   |   |   |
| Allowances for      losses                                        |   | $                    | 79,387  |   |   | $ | 44,197 |   |
| Compensation and benefits      (principally pension and other     |   |                 |    |   |   |   |   |   |
| postretirement benefit      plans)                                |   |                 | 45,842  |   |   |   | 47,219 |   |
| Net unrealized loss on securities      available-for-sale         |   |                 | -       |   |   |   | 4,480 |   |
| Securities impairment      write-downs                            |   |                 | 42,293  |   |   |   | 40,145 |   |
| Effect of unrecognized tax      benefits, related accrued         |   |                 |    |   |   |   |   |   |
| interest and other deductible      temporary differences          |   |                 | 5,752   |   |   |   | 5,534 |   |
| Total gross deferred tax      assets                              |   |                 | 173,274 |   |   |   | 141,575 |   |
| Deferred tax      liabilities:                                    |   |                 |    |   |   |   |   |   |
| Mortgage loans (principally      deferred loan origination costs) |   |                 | (9,599  | ) |   |   | (15,793 | ) |
| Premises and      equipment                                       |   |                 | (3,699  | ) |   |   | (4,790 | ) |
| Net unrealized gain on securities      available-for-sale         |   |                 | (8,291  | ) |   |   | - |   |
| Total gross deferred tax      liabilities                         |   |                 | (21,589 | ) |   |   | (20,583 | ) |
| Net deferred tax assets (included      in other assets)           |   | $                    | 151,685 |   |   | $ | 120,992 |   |

|                                                                            |   | For the Year Ended December      31, |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------|--------|
| (In    Thousands)                                                               |   | 2009                                 |   |   | 2008 |   |
| Unrecognized tax benefits at      beginning of year                             |   | $                                    | 6,013  |   |   | $ | 16,489 |   |
| Additions as a result of a tax      position taken during the current period    |   |                                 | 731    |   |   |   | - |   |
| Additions as a result of a tax      position taken during a prior period        |   |                                 | 3,177  |   |   |   | - |   |
| Reductions as a result of tax      positions taken during a prior period        |   |                                 | (1,033 | ) |   |   | (5,249 | ) |
| Reductions as a result of a lapse      in the applicable statute of limitations |   |                                 | (2,594 | ) |   |   | (5,102 | ) |
| Reductions relating to settlement      with taxing authorities                  |   |                                 | (1,021 | ) |   |   | (125 | ) |
| Unrecognized tax benefits at end      of year                                   |   | $                                    | 5,273  |   |   | $ | 6,013 |   |

----

| (13) | Earnings      Per Share |
|------|-------------------------|

|                                                                 |   | For the Year Ended December      31, |   |
|----------------------------------------------------------------------|--------|--------------------------------------|--------|
| (In Thousands, Except Per Share      Data)                           |   | 2009                                 |   |   | 2008 |   |   | 2007 |   |
| Net income                                                           |   | $                                    | 27,684 |   |   | $ | 75,342 |   |   | $ | 124,822 |   |
| Income allocated to participating      securities (restricted stock) |   |                                 | (914   | ) |   |   | (871 | ) |   |   | (634 | ) |
| Income attributable to common      shareholders                      |   | $                                    | 26,770 |   |   | $ | 74,471 |   |   | $ | 124,188 |   |
|                                                                 |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Average number of common shares      outstanding – basic       |   |                                 | 90,593 |   |   |   | 89,580 |   |   |   | 90,490 |   |
| Dilutive effect of stock options      (1)                            |   |                                 | 9      |   |   |   | 827 |   |   |   | 1,469 |   |
| Average number of common shares      outstanding – diluted     |   |                                 | 90,602 |   |   |   | 90,407 |   |   |   | 91,959 |   |
| Income per common share      attributable to common shareholders:    |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                |   | $                                    | 0.30   |   |   | $ | 0.83 |   |   | $ | 1.37 |   |
| Diluted                                                              |   | $                                    | 0.30   |   |   | $ | 0.82 |   |   | $ | 1.35 |   |

| (1) | Excludes      options to purchase 8,355,455 shares of common stock which were      outstanding during the year ended December 31, 2009; options to purchase      4,624,597 shares of common stock which were outstanding during the year      ended December 31, 2008; and options to purchase 2,729,384 shares of      common stock which were outstanding during the year ended December 31,      2007 because their inclusion would be  anti-dilutive. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Other      Comprehensive Income/Loss |
|------|--------------------------------------|

|                                                             |   | At                     |    |   | Other               |   |   | At                     |   |
|------------------------------------------------------------------|--------|------------------------|---------|--------|---------------------|--------|--------|------------------------|--------|
| (In    Thousands)                                                |   | December 31,      2008 |    |   | ComprehensiveIncome |   |   | December 31,      2009 |   |
| Net unrealized (loss) gain on      securities available-for-sale |   | $                      | (5,341  | )      |                | $      | 23,553 |                   |   | $ | 18,212 |   |
| Net actuarial loss on pension      plans and other               |   |                   |    |   |                |   |   |                   |   |   |   |   |
| postretirement      benefits                                     |   |                   | (55,563 | )      |                |   | 8,244  |                   |   |   | (47,319 | ) |
| Prior service cost on pension      plans and other               |   |                   |    |   |                |   |   |                   |   |   |   |   |
| postretirement      benefits                                     |   |                   | (237    | )      |                |   | 96     |                   |   |   | (141 | ) |
| Loss on cash flow      hedge                                     |   |                   | (724    | )      |                |   | 193    |                   |   |   | (531 | ) |
| Accumulated other comprehensive      loss                        |   | $                      | (61,865 | )      |                | $      | 32,086 |                   |   | $ | (29,779 | ) |

----

| (In    Thousands)                                                           |   | Before      TaxAmount |    |   | Tax(Expense)      Benefit |   |    | After      TaxAmount |   |
|-----------------------------------------------------------------------------|--------|-----------------------|---------|--------|---------------------------|--------|---------|----------------------|--------|
|                                                                        |   |                  |    |   |                      |   |    |                 |   |
| For the Year Ended December 31,      2009                                   |   |                  |    |   |                      |   |    |                 |   |
| Net unrealized gain on securities      available-for-sale:                  |   |                  |    |   |                      |   |    |                 |   |
| Net unrealized holding gains on      securities arising during the year     |   | $                     | 38,449  |   |                      | $      | (13,517 | )                    |   | $ | 24,932 |   |
| Reclassification adjustment for      net gains included in net income       |   |                  | (2,126  | )      |                      |   | 747     |                 |   |   | (1,379 | ) |
|                                                                        |   |                  | 36,323  |   |                      |   | (12,770 | )                    |   |   | 23,553 |   |
| Net actuarial loss on pension      plans and other postretirement benefits: |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net actuarial loss adjustment      arising during the year                  |   |                  | 4,190   |   |                      |   | (1,405  | )                    |   |   | 2,785 |   |
| Reclassification adjustment for      net actuarial loss                     |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 8,212   |   |                      |   | (2,753  | )                    |   |   | 5,459 |   |
|                                                                        |   |                  | 12,402  |   |                      |   | (4,158  | )                    |   |   | 8,244 |   |
| Reclassification adjustment for      prior service cost                     |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 148     |   |                      |   | (52     | )                    |   |   | 96 |   |
|                                                                        |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Reclassification adjustment for      loss on cash flow hedge                |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 329     |   |                      |   | (136    | )                    |   |   | 193 |   |
| Other comprehensive      income                                             |   | $                     | 49,202  |   |                      | $      | (17,116 | )                    |   | $ | 32,086 |   |
|                                                                        |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| For the Year Ended December 31,      2008                                   |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net unrealized gain on securities      available-for-sale:                  |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net unrealized holding losses on      securities arising during the year    |   | $                     | (44,557 | )      |                      | $      | 15,595  |                 |   | $ | (28,962 | ) |
| Reclassification adjustment for      net losses included in net income      |   |                  | 77,696  |   |                      |   | (27,194 | )                    |   |   | 50,502 |   |
|                                                                        |   |                  | 33,139  |   |                      |   | (11,599 | )                    |   |   | 21,540 |   |
| Net actuarial loss on pension      plans and other postretirement benefits: |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net actuarial loss adjustment      arising during the year                  |   |                  | (68,822 | )      |                      |   | 24,088  |                 |   |   | (44,734 | ) |
| Reclassification adjustment for      net actuarial loss                     |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 737     |   |                      |   | (258    | )                    |   |   | 479 |   |
|                                                                        |   |                  | (68,085 | )      |                      |   | 23,830  |                 |   |   | (44,255 | ) |
| Reclassification adjustment for      prior service cost                     |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 206     |   |                      |   | (72     | )                    |   |   | 134 |   |
|                                                                        |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Reclassification adjustment for      loss on cash flow hedge                |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 331     |   |                      |   | (139    | )                    |   |   | 192 |   |
| Other comprehensive      loss                                               |   | $                     | (34,409 | )      |                      | $      | 12,020  |                 |   | $ | (22,389 | ) |
|                                                                        |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| For the Year Ended December 31,      2007                                   |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net unrealized loss on securities      available-for-sale:                  |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net unrealized holding gains on      securities arising during the year     |   | $                     | 1,281   |   |                      | $      | (617    | )                    |   | $ | 664 |   |
| Reclassification adjustment for      net losses included in net income      |   |                  | 18,276  |   |                      |   | (7,860  | )                    |   |   | 10,416 |   |
|                                                                        |   |                  | 19,557  |   |                      |   | (8,477  | )                    |   |   | 11,080 |   |
| Net actuarial loss on pension      plans and other postretirement benefits: |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Net actuarial loss adjustment      arising during the year                  |   |                  | 9,738   |   |                      |   | (4,210  | )                    |   |   | 5,528 |   |
| Reclassification adjustment for      net actuarial loss                     |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 1,889   |   |                      |   | (785    | )                    |   |   | 1,104 |   |
|                                                                        |   |                  | 11,627  |   |                      |   | (4,995  | )                    |   |   | 6,632 |   |
| Prior service cost on pension      plans and other postretirement benefits: |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| Prior service cost adjustment      arising during the year                  |   |                  | 1,111   |   |                      |   | (473    | )                    |   |   | 638 |   |
| Reclassification adjustment for      prior service cost                     |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 536     |   |                      |   | (223    | )                    |   |   | 313 |   |
|                                                                        |   |                  | 1,647   |   |                      |   | (696    | )                    |   |   | 951 |   |
| Reclassification adjustment for      loss on cash flow hedge                |   |                  |    |   |                      |   |    |                 |   |   |   |   |
| included in net      income                                                 |   |                  | 330     |   |                      |   | (139    | )                    |   |   | 191 |   |
| Other comprehensive      income                                             |   | $                     | 33,161  |   |                      | $      | (14,307 | )                    |   | $ | 18,854 |   |

----

| (15) | Benefit      Plans |
|------|--------------------|

|                                                  |   |                          |    |   |                          |   |    | Other      Postretirement |   |
|-------------------------------------------------------|--------|-------------------------------|---------|--------|-------------------------------|--------|---------|---------------------------|--------|
|                                                  |   | Pension      Benefits         |    |   | Benefits                      |   |
|                                                  |   | At or For the Year      Ended |    |   | At or For the Year      Ended |   |
|                                                  |   | December31,                   |    |   | December31,                   |   |
| (In    Thousands)                                     |   | 2009                          |    |   | 2008                          |   |    | 2009                      |   |   | 2008 |   |
| Change in benefit      obligation:                    |   |                          |    |   |                          |   |    |                      |   |   |   |   |
| Benefit obligation at beginning of      year          |   | $                             | 192,266 |   |                          | $      | 176,220 |                      |   | $ | 18,173 |   |   | $ | 16,478 |   |
| Servicecost                                           |   |                          | 3,484   |   |                          |   | 2,942   |                      |   |   | 323 |   |   |   | 255 |   |
| Interest    cost                                      |   |                          | 11,341  |   |                          |   | 11,012  |                      |   |   | 1,110 |   |   |   | 1,020 |   |
| Actuarial    loss                                     |   |                          | 5,197   |   |                          |   | 11,845  |                      |   |   | 969 |   |   |   | 1,309 |   |
| Benefits    paid                                      |   |                          | (10,849 | )      |                          |   | (9,753  | )                         |   |   | (1,001 | ) |   |   | (889 | ) |
| Benefit obligation at end of      year                |   |                          | 201,439 |   |                          |   | 192,266 |                      |   |   | 19,574 |   |   |   | 18,173 |   |
| Change in plan      assets:                           |   |                          |    |   |                          |   |    |                      |   |   |   |   |   |   |   |   |
| Fair value of plan assets at      beginning of year   |   |                          | 110,779 |   |                          |   | 162,762 |                      |   |   | - |   |   |   | - |   |
| Actual return on plan      assets                     |   |                          | 18,866  |   |                          |   | (43,016 | )                         |   |   | - |   |   |   | - |   |
| Employer payments for benefits on      unfunded plans |   |                          | 2,167   |   |                          |   | 786     |                      |   |   | 1,001 |   |   |   | 889 |   |
| Benefits    paid                                      |   |                          | (10,849 | )      |                          |   | (9,753  | )                         |   |   | (1,001 | ) |   |   | (889 | ) |
| Fair value of plan assets at end      of year         |   |                          | 120,963 |   |                          |   | 110,779 |                      |   |   | - |   |   |   | - |   |
| Funded status at end of      year                     |   | $                             | (80,476 | )      |                          | $      | (81,487 | )                         |   | $ | (19,574 | ) |   | $ | (18,173 | ) |

|                                                     |   |                  |   |   |               |   |   | Other      Postretirement |   |
|----------------------------------------------------------|--------|-----------------------|--------|--------|--------------------|--------|--------|---------------------------|--------|
|                                                     |   | Pension      Benefits |   |   | Benefits           |   |
|                                                     |   | At December    31,    |   |   | At December    31, |   |
| (In    Thousands)                                        |   | 2009                  |   |   | 2008               |   |   | 2009                      |   |   | 2008 |   |
| Net actuarial loss      (gain)                           |   | $                     | 76,062 |   |               | $      | 89,433 |                      |   | $ | (1,054 | ) |   | $ | (2,023 | ) |
| Prior service cost      (credit)                         |   |                  | 505    |   |               |   | 752    |                      |   |   | (225 | ) |   |   | (324 | ) |
| Total accumulated other      comprehensive loss (income) |   | $                     | 76,567 |   |               | $      | 90,185 |                      |   | $ | (1,279 | ) |   | $ | (2,347 | ) |

----

|                                |   | At December    31, |   |
|-------------------------------------|--------|--------------------|--------|
| (In    Thousands)                   |   | 2009               |   |   | 2008 |   |
| Projected benefit      obligation   |   | $                  | 23,365 |   |   | $ | 19,797 |   |
| Accumulated benefit      obligation |   |               | 20,579 |   |   |   | 17,763 |   |

|                                                  |   |             |   |   |                  |   |   | Rate      of |   |
|-------------------------------------------------------|--------|------------------|--------|--------|-----------------------|--------|--------|--------------|--------|
|                                                  |   | Discount    Rate |   |   | Compensation Increase |   |
|                                                  |   | 2009             |   |   | 2008                  |   |   | 2009         |   |   | 2008 |   |
| Pension Benefit      Plans:                           |   |             |   |   |                  |   |   |         |   |   |   |   |
| Astoria Federal Pension      Plan                     |   |             | 5.91   | %      |                  |   | 5.92   | %            |   |   | 5.10 | % |   |   | 5.10 | % |
| Astoria Federal Excess Benefit      and               |   |             |   |   |                  |   |   |         |   |   |   |   |   |   |   |   |
| Supplemental Benefit      Plans                       |   |             | 5.70   |   |                  |   | 6.25   |         |   |   | 6.10 |   |   |   | 6.10 |   |
| Astoria Federal Directors’      Retirement Plan |   |             | 5.33   |   |                  |   | 6.34   |         |   |   | 4.00 |   |   |   | 4.00 |   |
| Greater Directors’ Retirement      Plan         |   |             | 5.13   |   |                  |   | 6.08   |         |   |   | N/A |   |   |   | N/A |   |
| LIB Directors’ Retirement      Plan             |   |             | 2.68   |   |                  |   | 5.43   |         |   |   | N/A |   |   |   | N/A |   |
| Other Postretirement Benefit      Plan:               |   |             |   |   |                  |   |   |         |   |   |   |   |   |   |   |   |
| Astoria Federal Retiree Health      Care Plan         |   |             | 5.90   |   |                  |   | 6.03   |         |   |   | N/A |   |   |   | N/A |   |

|                                             |   | Pension      Benefits                      |   |   | Other Postretirement      Benefits         |   |
|--------------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                             |   | For      the Year Ended December 31,  |   |   | For      the Year Ended December 31,  |   |
| (In    Thousands)                                |   | 2009                                       |   |   | 2008                                       |   |   | 2007 |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Servicecost                                      |   | $                                          | 3,484  |   |                                       | $      | 2,942 |   |   | $ | 3,314 |   |   | $ | 323 |   |   | $ | 255 |   |   | $ | 464 |   |
| Interest    cost                                 |   |                                       | 11,341 |   |                                       |   | 11,012 |   |   |   | 10,497 |   |   |   | 1,110 |   |   |   | 1,020 |   |   |   | 1,026 |   |
| Expected return on plan      assets              |   |                                       | (8,510 | )      |                                       |   | (12,652 | ) |   |   | (12,846 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization of prior service cost      (credit) |   |                                       | 247    |   |                                       |   | 305 |   |   |   | 368 |   |   |   | (99 | ) |   |   | (99 | ) |   |   | 168 |   |
| Recognized net actuarial loss      (gain)        |   |                                       | 8,212  |   |                                       |   | 879 |   |   |   | 1,911 |   |   |   | - |   |   |   | (142 | ) |   |   | (22 | ) |
| Net periodic      cost                           |   | $                                          | 14,774 |   |                                       | $      | 2,486 |   |   | $ | 3,244 |   |   | $ | 1,334 |   |   | $ | 1,034 |   |   | $ | 1,636 |   |

|                                                  |   |          |   |   |           |   |   | Expected    Return         |   |   | Rate of |   |
|-------------------------------------------------------|--------|---------------|--------|--------|----------------|--------|--------|----------------------------|--------|--------|---------|--------|
|                                                  |   | Discount Rate |   |   | on Plan Assets |   |   | Compensation      Increase |   |
|                                                  |   | 2009          |   |   | 2008           |   |   | 2009                       |   |   | 2008    |   |   | 2009 |   |   | 2008 |   |
| Pension Benefit      Plans:                           |   |          |   |   |           |   |   |                       |   |   |    |   |   |   |   |   |   |   |
| Astoria Federal Pension      Plan                     |   |          | 5.92   | %      |           |   | 6.45   | %                          |   |   | 8.00    | %      |   |   | 8.00 | % |   |   | 5.10 | % |   |   | 5.10 | % |
| Astoria Federal Excess Benefit      and               |   |          |   |   |           |   |   |                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental Benefit      Plans                       |   |          | 6.25   |   |           |   | 6.34   |                       |   |   | N/A     |   |   |   | N/A |   |   |   | 6.10 |   |   |   | 6.10 |   |
| Astoria Federal Directors’      Retirement Plan |   |          | 6.34   |   |           |   | 6.22   |                       |   |   | N/A     |   |   |   | N/A |   |   |   | 4.00 |   |   |   | 4.00 |   |
| Greater Directors’ Retirement      Plan         |   |          | 6.08   |   |           |   | 5.83   |                       |   |   | N/A     |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
| LIB Directors' Retirement      Plan                   |   |          | 5.43   |   |           |   | 5.32   |                       |   |   | N/A     |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |
| Other Postretirement Benefit      Plan:               |   |          |   |   |           |   |   |                       |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Astoria Federal Retiree Health      Care Plan         |   |          | 6.03   |   |           |   | 6.42   |                       |   |   | N/A     |   |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

----

|                                                                                   |   | At December    31, |   |
|----------------------------------------------------------------------------------------|--------|--------------------|--------|
|                                                                                   |   | 2009               |   |   | 2008 |   |
| Health care cost trend rate      assumed for next year                                 |   |               | 7.50   | %  |   |   |   | 8.00 | % |   |
| Rate to which the cost trend rate      is assumed to decline (the ultimate trend rate) |   |               | 5.00   | %  |   |   |   | 5.00 | %  |   |
| Year that the rate reaches the      ultimate trend rate                                |   | 2015               |   |   |   | 2015 |   |   |

|                                                      |   | One    Percentage |   |   | One    Percentage |   |
|-----------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|
| (In    Thousands)                                         |   | Point    Increase |   |   | Point    Decrease |   |
| Effect on total service and      interest cost components |   | $                 | 229    |   |              | $      | (180 | ) |
| Effect on the postretirement      benefit obligation      |   |              | 2,546  |   |              |   | (2,046 | ) |

|      |   | Pension           |   |   | Other      Postretirement |   |
|-----------|--------|-------------------|--------|--------|---------------------------|--------|
| Year      |   | Benefits          |   |   | Benefits                  |   |
|      |   | (In    Thousands) |   |
| 2010      |   | $                 | 18,402 |   |                      | $      | 1,163 |   |
| 2011      |   |              | 12,590 |   |                      |   | 1,153 |   |
| 2012      |   |              | 11,606 |   |                      |   | 1,135 |   |
| 2013      |   |              | 10,828 |   |                      |   | 1,131 |   |
| 2014      |   |              | 11,007 |   |                      |   | 1,133 |   |
| 2015-2019 |   |              | 66,577 |   |                      |   | 5,953 |   |

|                                            |   | At December    31, |    |
|-------------------------------------------------|--------|--------------------|---------|
| (In    Thousands)                               |   | 2009               |    |   | 2008 |   |
| PRIAC Pooled Separate Accounts      (1)         |   | $                  | 105,930 |   |   | $ | 93,036 |   |
| Astoria Financial Corporation      common stock |   |               | 10,028  |   |   |   | 12,744 |   |
| PRIAC Guaranteed Deposit      Account           |   |               | 4,992   |   |   |   | 4,939 |   |
| Cash                                            |   |               | 13      |   |   |   | 60 |   |
| Total                                           |   | $                  | 120,963 |   |   | $ | 110,779 |   |

| (1) | At      December 31, 2009, consists of 42% large-cap equity securities, 35% debt      securities, 10% international equities, 8% small-cap equity securities and      5% mid-cap equity securities and at December 31, 2008, consists of 41%      large-cap equity securities, 37% debt securities, 9% small-cap equity      securities, 8% international equities and 5% mid-cap equity      securities. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | Carrying      Value at December 31, 2009 |    |
|-------------------------------------------------|--------|------------------------------------------|---------|
| (In      Thousands)                             |   | Total                                    |    |   | Level      1 |   |   | Level      2 |   |   | Level      3 |   |
| PRIAC      Pooled Separate Accounts             |   | $                                        | 105,930 |   |   | $ | - |   |   | $ | 105,930 |   |   | $ | - |   |
| Astoria      Financial Corporation common stock |   |                                     | 10,028  |   |   |   | 10,028 |   |   |   | - |   |   |   | - |   |
| PRIAC      Guaranteed Deposit Account           |   |                                     | 4,992   |   |   |   | - |   |   |   | - |   |   |   | 4,992 |   |
| Cash                                            |   |                                     | 13      |   |   |   | 13 |   |   |   | - |   |   |   | - |   |
| Total                                           |   | $                                        | 120,963 |   |   | $ | 10,041 |   |   | $ | 105,930 |   |   | $ | 4,992 |   |

----

| (In      Thousands)                                                                     | Level      3 Assets |
|-----------------------------------------------------------------------------------------|---------------------|
| Fair      value at beginning of year                                                    |                | $ | 4,939 |   |
| Total      net gain (realized and unrealized) included in change in net assets      (1) |                |   | 852 |   |
| Purchases      and sales, net                                                           |                |   | (799 | ) |
| Fair      value at end of year                                                          |                | $ | 4,992 |   |

| (16) | Stock      Incentive Plans |
|------|----------------------------|

----

|                                |   | Number      ofShares |      |   | Weighted      AverageGrant      Date Fair Value |   |
|-------------------------------------|--------|----------------------|-----------|--------|-------------------------------------------------|--------|
| Nonvested at beginning of      year |   |                 | 846,422   |   |                                            | $      | 27.63 |   |
| Granted                             |   |                 | 1,174,232 |   |                                            |   | 8.20 |   |
| Vested                              |   |                 | (475,244  | )      |                                            |   | (17.39 | ) |
| Forfeited                           |   |                 | (22,990   | )      |                                            |   | (15.60 | ) |
| Nonvested at end of      year       |   |                 | 1,522,420 |   |                                            |   | 16.02 |   |

----

|                                            |   | Number of |      |   | Weighted      Average |   |
|-------------------------------------------------|--------|-----------|-----------|--------|-----------------------|--------|
|                                            |   | Options   |      |   | Exercise    Price     |   |
| Outstanding at beginning of      year           |   |      | 8,758,089 |   |                  | $      | 21.67 |   |
| Exercised                                       |   |      | (54,359   | )      |                  |   | (11.29 | ) |
| Expired                                         |   |      | (646,900  | )      |                  |   | (12.27 | ) |
| Outstanding and exercisable at end      of year |   |      | 8,056,830 |   |                  |   | 22.49 |   |

| (17) | Regulatory      Matters |
|------|-------------------------|

----

|                        |   | At December 31,      2009 |    |   |
|-----------------------------|--------|---------------------------|---------|--------|
|                        |   | Capital                   |    |   |   |   |   |   | Actual |   |   |   |   |   |   | Excess |   |   |   |   |   |
| (Dollars in      Thousands) |   | Requirement               |    |   | % |   |   | Capital |   |   | % |   |   | Capital |   |   | % |   |
| Tangible                    |   | $                         | 300,081 |   |   |   | 1.50 | %  |   |   | $ | 1,377,589 |   |   |   | 6.89 | %  |   |   | $ | 1,077,508 |   |   |   | 5.39 | %  |   |
| Leverage                    |   |                      | 800,216 |   |   |   | 4.00 |   |   |   |   | 1,377,589 |   |   |   | 6.89 |   |   |   |   | 577,373 |   |   |   | 2.89 |   |   |
| Risk-based                  |   |                      | 940,122 |   |   |   | 8.00 |   |   |   |   | 1,526,762 |   |   |   | 12.99 |   |   |   |   | 586,640 |   |   |   | 4.99 |   |   |

|                        |   | At December 31,      2008 |      |   |
|-----------------------------|--------|---------------------------|-----------|--------|
|                        |   | Capital                   |      |   |   |   |   |   | Actual |   |   |   |   |   |   | Excess |   |   |   |   |   |
| (Dollars in      Thousands) |   | Requirement               |      |   | % |   |   | Capital |   |   | % |   |   | Capital |   |   | % |   |
| Tangible                    |   | $                         | 326,930   |   |   |   | 1.50 | %  |   |   | $ | 1,393,744 |   |   |   | 6.39 | %  |   |   | $ | 1,066,814 |   |   |   | 4.89 | % |   |
| Leverage                    |   |                      | 871,813   |   |   |   | 4.00 |   |   |   |   | 1,393,744 |   |   |   | 6.39 |   |   |   |   | 521,931 |   |   |   | 2.39 |   |   |
| Risk-based                  |   |                      | 1,006,859 |   |   |   | 8.00 |   |   |   |   | 1,512,773 |   |   |   | 12.02 |   |   |   |   | 505,914 |   |   |   | 4.02 |   |   |

| (18) | Fair      Value Measurements |
|------|------------------------------|

| •        |   | Level      1 – Valuation is based upon quoted prices for identical instruments traded      in active markets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| •        |   | Level      2 – Valuation is based upon quoted prices for similar instruments in      active markets, quoted prices for identical or similar instruments in      markets that are not active and model-based valuation techniques for which      all significant assumptions are observable in the  market.                                                                                                                                                                                                                                                                                                              |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| •        |   | Level      3 – Valuation is generated from model-based techniques that use      significant assumptions not observable in the market.  These      unobservable assumptions reflect our own estimates of assumptions that      market participants would use in pricing the asset or      liability.  Valuation techniques include the use of option      pricing models, discounted cash flow models and similar      techniques.  The results cannot be determined with precision and      may not be realized in an actual sale or immediate settlement of the asset      or liability. |

----

|                                         |   | Carrying Value at December 31,      2009 |    |
|----------------------------------------------|--------|------------------------------------------|---------|
| (In    Thousands)                            |   | Total                                    |    |   | Level      1 |   |   | Level 2 |   |   | Level 3 |   |
| Securities      available-for-sale:          |   |                                     |    |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed      securities: |   |                                     |    |   |   |   |   |   |   |   |   |   |
| GSE issuance REMICs and      CMOs            |   | $                                        | 796,240 |   |   | $ | - |   |   | $ | 796,240 |   |   | $ | - |   |
| Non-GSE issuance REMICs and      CMOs        |   |                                     | 26,269  |   |   |   | - |   |   |   | 26,269 |   |   |   | - |   |
| GSE pass-through      certificates           |   |                                     | 34,375  |   |   |   | - |   |   |   | 34,375 |   |   |   | - |   |
| Other      securities                        |   |                                     | 3,810   |   |   |   | 3,810 |   |   |   | - |   |   |   | - |   |
| Total securities      available-for-sale     |   | $                                        | 860,694 |   |   | $ | 3,810 |   |   | $ | 856,884 |   |   | $ | - |   |

----

|                                             |   |                                     |    |   |    |   |   |    |   |   |    |   |   | Losses                      |    |
|--------------------------------------------------|--------|------------------------------------------|---------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-----------------------------|---------|
|                                             |   |                                     |    |   |    |   |   |    |   |   |    |   |   | For theYear                 |    |
|                                             |   | Carrying Value at December 31,      2009 |    |   | Ended   |   |
| (In    Thousands)                                |   | Total                                    |    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | December      31, 2009 |    |
| Non-performing loans      held-for-sale, net (1) |   | $                                        | 6,865   |   |    | $      | -      |    |   | $      | -       |   |   | $                           | 6,865   |   |   | $ | 7,835 |   |
| Impaired loans      (2)                          |   |                                     | 145,250 |   |    |   | -      |    |   |   | -       |   |   |                        | 145,250 |   |   |   | 42,372 |   |
| MSR, net                                         |   |                                     | 8,850   |   |    |   | -      |    |   |   | -       |   |   |                        | 8,850   |   |   |   | - |   |
| REO, net(3)                                      |   |                                     | 43,958  |   |    |   | -      |    |   |   | -       |   |   |                        | 43,958  |   |   |   | 17,537 |   |
| Total                                            |   | $                                        | 204,923 |   |    | $      | -      |    |   | $      | -       |   |   | $                           | 204,923 |   |   | $ | 67,744 |   |

| (1) | Losses      for the year ended December 31, 2009 were charged against the allowance      for loan losses in the case of a write-down upon the reclassification of a      loan to held-for-sale.  Losses subsequent to the      reclassification of a loan to held-for-sale were charged to other      non-interest income. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Losses      for the year ended December 31, 2009 were charged against the allowance      for loan losses. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (3) | Losses      for the year ended December 31, 2009 were charged against the allowance      for loan losses in the case of a write-down upon the transfer of a loan to      REO.  Losses subsequent to the transfer of a loan to REO were      charged to REO expense. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (19) | Fair      Value of FinancialInstruments |
|------|-----------------------------------------|

----

|                              |   | At December 31, |       |
|-----------------------------------|--------|---------------------------|------------|
|                              |   | 2009                      |       |   | 2008 |   |
|                              |   | Carrying                  |       |   | Estimated |   |   | Carrying |   |   | Estimated |   |
| (In Thousands)               |   | Amount                    |       |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
| Financial      Assets:            |   |                      |       |   |   |   |   |   |   |   |   |   |
| Repurchase      agreements        |   | $                         | 40,030     |   |   | $ | 40,030 |   |   | $ | 24,060 |   |   | $ | 24,060 |   |
| Securities      held-to-maturity  |   |                      | 2,317,885  |   |   |   | 2,367,520 |   |   |   | 2,646,862 |   |   |   | 2,643,955 |   |
| FHLB-NY      stock                |   |                      | 178,929    |   |   |   | 178,929 |   |   |   | 211,900 |   |   |   | 211,900 |   |
| Loans      held-for-sale, net (1) |   |                      | 34,274     |   |   |   | 34,585 |   |   |   | 5,272 |   |   |   | 5,391 |   |
| Loans      receivable, net (1)    |   |                      | 15,586,673 |   |   |   | 16,030,427 |   |   |   | 16,593,415 |   |   |   | 16,843,033 |   |
| MSR,      net (1)                 |   |                      | 8,850      |   |   |   | 8,866 |   |   |   | 8,216 |   |   |   | 8,236 |   |
|                              |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial      Liabilities:       |   |                      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                          |   |                      | 12,812,238 |   |   |   | 12,978,569 |   |   |   | 13,479,924 |   |   |   | 13,636,753 |   |
| Borrowings,      net              |   |                      | 5,877,834  |   |   |   | 6,332,288 |   |   |   | 6,965,274 |   |   |   | 7,567,454 |   |

----

----

| (20) | Condensed      Parent Company Only Financial  Statements |
|------|----------------------------------------------------------|

|                                                  |   | At December    31, |      |
|-------------------------------------------------------|--------|--------------------|-----------|
| (In    Thousands)                                     |   | 2009               |      |   | 2008 |   |
| Assets:                                               |   |               |      |   |   |   |
| Cash                                                  |   | $                  | 2         |   |   | $ | 5 |   |
| Repurchase      agreements                            |   |               | 40,030    |   |   |   | 24,060 |   |
| ESOP loans      receivable                            |   |               | 24,245    |   |   |   | 28,565 |   |
| Otherassets                                           |   |               | 606       |   |   |   | 437 |   |
| Investment in Astoria      Federal                    |   |               | 1,538,084 |   |   |   | 1,525,925 |   |
| Investment in AF Insurance Agency,      Inc.          |   |               | 1,106     |   |   |   | 874 |   |
| Investment in Astoria Capital      Trust I            |   |               | 3,929     |   |   |   | 3,929 |   |
| Totalassets                                           |   | $                  | 1,608,002 |   |   | $ | 1,583,795 |   |
| Liabilities and stockholders’      equity:      |   |               |      |   |   |   |   |   |
| Other borrowings,      net                            |   | $                  | 377,834   |   |   | $ | 377,274 |   |
| Other      liabilities                                |   |               | 3,497     |   |   |   | 3,563 |   |
| Amounts due to      subsidiaries                      |   |               | 18,057    |   |   |   | 21,189 |   |
| Stockholders'      equity                             |   |               | 1,208,614 |   |   |   | 1,181,769 |   |
| Total liabilities and      stockholders’ equity |   | $                  | 1,608,002 |   |   | $ | 1,583,795 |   |

----

|                                          |   | For the Year Ended December      31, |    |
|-----------------------------------------------|--------|--------------------------------------|---------|
| (In    Thousands)                             |   | 2009                                 |    |   | 2008 |   |   | 2007 |   |
| Interest      income:                         |   |                                 |    |   |   |   |   |   |   |
| Repurchase      agreements                    |   | $                                    | 47      |   |   | $ | 627 |   |   | $ | 1,759 |   |
| ESOP loans      receivable                    |   |                                 | 1,714   |   |   |   | 1,845 |   |   |   | 1,923 |   |
| Total interest      income                    |   |                                 | 1,761   |   |   |   | 2,472 |   |   |   | 3,682 |   |
| Interest expense on      borrowings           |   |                                 | 27,453  |   |   |   | 28,283 |   |   |   | 29,858 |   |
| Net interest      expense                     |   |                                 | 25,692  |   |   |   | 25,811 |   |   |   | 26,176 |   |
| Non-interest      income                      |   |                                 | -       |   |   |   | - |   |   |   | - |   |
| Cash dividends from      subsidiaries         |   |                                 | 82,064  |   |   |   | 148,800 |   |   |   | 162,300 |   |
| Non-interest      expense:                    |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Compensation and      benefits                |   |                                 | 3,989   |   |   |   | 3,730 |   |   |   | 3,192 |   |
| Other                                         |   |                                 | 2,865   |   |   |   | 2,947 |   |   |   | 2,720 |   |
| Total non-interest      expense               |   |                                 | 6,854   |   |   |   | 6,677 |   |   |   | 5,912 |   |
| Income before income taxes and      equity in |   |                                 |    |   |   |   |   |   |   |   |   |   |
| overdistributed earnings of      subsidiaries |   |                                 | 49,518  |   |   |   | 116,312 |   |   |   | 130,212 |   |
| Income tax      benefit                       |   |                                 | 11,307  |   |   |   | 11,287 |   |   |   | 13,293 |   |
| Income before equity in      overdistributed  |   |                                 |    |   |   |   |   |   |   |   |   |   |
| earnings of      subsidiaries                 |   |                                 | 60,825  |   |   |   | 127,599 |   |   |   | 143,505 |   |
| Equity in overdistributed      earnings       |   |                                 |    |   |   |   |   |   |   |   |   |   |
| of subsidiaries      (1)                      |   |                                 | (33,141 | ) |   |   | (52,257 | ) |   |   | (18,683 | ) |
| Net income                                    |   | $                                    | 27,684  |   |   | $ | 75,342 |   |   | $ | 124,822 |   |

| (1) | The      equity in overdistributed earnings of subsidiaries represents dividends      paid to us in excess of our subsidiaries'  earnings. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                      |   | For the Year Ended December      31, |    |
|-----------------------------------------------------------|--------|--------------------------------------|---------|
| (In    Thousands)                                         |   | 2009                                 |    |   | 2008 |   |   | 2007 |   |
| Cash flows from operating      activities:                |   |                                 |    |   |   |   |   |   |   |
| Net income                                                |   | $                                    | 27,684  |   |   | $ | 75,342 |   |   | $ | 124,822 |   |
| Adjustments to reconcile net      income to net cash      |   |                                 |    |   |   |   |   |   |   |   |   |   |
| provided by operating      activities:                    |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Equity in overdistributed earnings      of                |   |                                 |    |   |   |   |   |   |   |   |   |   |
| subsidiaries                                              |   |                                 | 33,141  |   |   |   | 52,257 |   |   |   | 18,683 |   |
| Amortization of premiums and      deferred costs          |   |                                 | 890     |   |   |   | 945 |   |   |   | 986 |   |
| Increase in other assets, net of      other liabilities   |   |                                 |    |   |   |   |   |   |   |   |   |   |
| and amounts due to      subsidiaries                      |   |                                 | (2,486  | ) |   |   | (8,695 | ) |   |   | (9,479 | ) |
| Net cash provided by operating      activities            |   |                                 | 59,229  |   |   |   | 119,849 |   |   |   | 135,012 |   |
| Cash flows from investing      activities:                |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Principal payments on ESOP loans      receivable          |   |                                 | 4,320   |   |   |   | 2,189 |   |   |   | 1,298 |   |
| Principal payments on securities      available-for-sale  |   |                                 | -       |   |   |   | - |   |   |   | 125 |   |
| Net cash provided by investing      activities            |   |                                 | 4,320   |   |   |   | 2,189 |   |   |   | 1,423 |   |
| Cash flows from financing      activities:                |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Repayments of borrowings with      original terms greater |   |                                 |    |   |   |   |   |   |   |   |   |   |
| than three      months                                    |   |                                 | -       |   |   |   | (20,000 | ) |   |   | (20,000 | ) |
| Common stock      repurchased                             |   |                                 | -       |   |   |   | (18,090 | ) |   |   | (80,055 | ) |
| Cash dividends paid to      stockholders                  |   |                                 | (47,758 | ) |   |   | (93,811 | ) |   |   | (95,176 | ) |
| Cash received for options      exercised                  |   |                                 | 578     |   |   |   | 8,042 |   |   |   | 9,170 |   |
| Tax benefit (shortfall) excess      from share-based      |   |                                 |    |   |   |   |   |   |   |   |   |   |
| payment arrangements,      net                            |   |                                 | (402    | ) |   |   | 1,667 |   |   |   | 2,148 |   |
| Net cash used in financing      activities                |   |                                 | (47,582 | ) |   |   | (122,192 | ) |   |   | (183,913 | ) |
| Net increase (decrease) in cash      and cash equivalents |   |                                 | 15,967  |   |   |   | (154 | ) |   |   | (47,478 | ) |
| Cash and cash equivalents at      beginning of year       |   |                                 | 24,065  |   |   |   | 24,219 |   |   |   | 71,697 |   |
| Cash and cash equivalents at end      of year             |   | $                                    | 40,032  |   |   | $ | 24,065 |   |   | $ | 24,219 |   |
|                                                      |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure:                             |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Cash paid during the year for      interest               |   | $                                    | 26,563  |   |   | $ | 28,096 |   |   | $ | 29,631 |   |

----

|                                                     |   | For the Year Ended December 31,      2009 |    |
|----------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                     |   | First                                     |    |   | Second |   |   | Third |   |   | Fourth |   |
| (In Thousands, Except Per Share      Data)               |   | Quarter                                   |    |   | Quarter |   |   | Quarter |   |   | Quarter |   |
| Interest    income                                       |   | $                                         | 267,038 |   |   | $ | 253,297 |   |   | $ | 242,102 |   |   | $ | 235,104 |   |
| Interest      expense                                    |   |                                      | 155,361 |   |   |   | 144,243 |   |   |   | 139,019 |   |   |   | 130,149 |   |
| Net interest      income                                 |   |                                      | 111,677 |   |   |   | 109,054 |   |   |   | 103,083 |   |   |   | 104,955 |   |
| Provision for loan      losses                           |   |                                      | 50,000  |   |   |   | 50,000 |   |   |   | 50,000 |   |   |   | 50,000 |   |
| Net interest income after      provision for loan losses |   |                                      | 61,677  |   |   |   | 59,054 |   |   |   | 53,083 |   |   |   | 54,955 |   |
| Non-interest      income                                 |   |                                      | 15,942  | (1) |   |   | 20,430 |   |   |   | 20,080 |   |   |   | 23,349 |   |
| Totalincome                                              |   |                                      | 77,619  |   |   |   | 79,484 |   |   |   | 73,163 |   |   |   | 78,304 |   |
| General and administrative      expense                  |   |                                      | 63,961  |   |   |   | 76,021 | (2) |   |   | 63,239 |   |   |   | 66,835 |   |
| Income before income tax      expense                    |   |                                      | 13,658  |   |   |   | 3,463 |   |   |   | 9,924 |   |   |   | 11,469 |   |
| Income tax      expense                                  |   |                                      | 4,862   |   |   |   | 763 |   |   |   | 1,876 |   |   |   | 3,329 |   |
| Net income                                               |   | $                                         | 8,796   |   |   | $ | 2,700 |   |   | $ | 8,048 |   |   | $ | 8,140 |   |
| Basic earnings per common      share                     |   | $                                         | 0.10    |   |   | $ | 0.03 |   |   | $ | 0.09 |   |   | $ | 0.09 |   |
| Diluted earnings per common      share                   |   | $                                         | 0.10    |   |   | $ | 0.03 |   |   | $ | 0.09 |   |   | $ | 0.09 |   |

| (1) | Includes a $5.3 million OTTI      charge.             |
|-----|-------------------------------------------------------|
| (2) | Includes a $9.9 million FDIC      special assessment. |

|                                                     |   | For the Year Ended December 31,      2008 |    |
|----------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                     |   | First                                     |    |   | Second |   |   | Third |   |   | Fourth |   |
| (In Thousands, Except Per Share      Data)               |   | Quarter                                   |    |   | Quarter |   |   | Quarter |   |   | Quarter |   |
| Interest    income                                       |   | $                                         | 272,096 |   |   | $ | 266,639 |   |   | $ | 273,942 |   |   | $ | 277,034 |   |
| Interest      expense                                    |   |                                      | 191,310 |   |   |   | 174,059 |   |   |   | 166,869 |   |   |   | 162,089 |   |
| Net interest      income                                 |   |                                      | 80,786  |   |   |   | 92,580 |   |   |   | 107,073 |   |   |   | 114,945 |   |
| Provision for loan      losses                           |   |                                      | 4,000   |   |   |   | 7,000 |   |   |   | 13,000 |   |   |   | 45,000 |   |
| Net interest income after      provision for loan losses |   |                                      | 76,786  |   |   |   | 85,580 |   |   |   | 94,073 |   |   |   | 69,945 |   |
| Non-interest income      (loss)                          |   |                                      | 22,437  |   |   |   | 24,833 |   |   |   | (55,298 | )      (3) |   |   | 19,208 |   |
| Totalincome                                              |   |                                      | 99,223  |   |   |   | 110,413 |   |   |   | 38,775 |   |   |   | 89,153 |   |
| General and administrative      expense                  |   |                                      | 58,229  |   |   |   | 59,982 |   |   |   | 58,804 |   |   |   | 56,245 |   |
| Income (loss) before income tax      expense (benefit)   |   |                                      | 40,994  |   |   |   | 50,431 |   |   |   | (20,029 | ) |   |   | 32,908 |   |
| Income tax expense      (benefit)                        |   |                                      | 12,091  |   |   |   | 16,981 |   |   |   | (3,570 | ) |   |   | 3,460 |  (4) |
| Net income      (loss)                                   |   | $                                         | 28,903  |   |   | $ | 33,450 |   |   | $ | (16,459 | ) |   | $ | 29,448 |   |
| Basic earnings (loss) per common      share              |   | $                                         | 0.32    |   |   | $ | 0.37 |   |   | $ | (0.19 | ) |   | $ | 0.33 |   |
| Diluted earnings (loss) per common      share            |   | $                                         | 0.32    |   |   | $ | 0.37 |   |   | $ | (0.19 | ) |   | $ | 0.32 |   |

| (3) | Includes a $77.7 million OTTI      charge.                                                      |
|-----|-------------------------------------------------------------------------------------------------|
| (4) | Includes a $7.4 million tax      adjustment related to the third quarter 2008 OTTI      charge. |

----

| Exhibit      No. | Identification of      Exhibit |
|------------------|--------------------------------|

|   | 3.1 | Certificate      of Incorporation of Astoria Financial Corporation, as amended effective as      of June 3, 1998 and as further amended on September 6, 2006 and September      20, 2006. (1) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Bylaws      of Astoria Financial Corporation, as amended March 19, 2008.      (2) |
|--------|-----|-----------------------------------------------------------------------------------|

|   | 4.1 | Astoria      Financial Corporation Specimen Stock Certificate.  (3) |
|--------|-----|---------------------------------------------------------------------|

|   | 4.2 | Federal      Stock Charter of Astoria Federal Savings and Loan Association.      (4) |
|--------|-----|--------------------------------------------------------------------------------------|

|   | 4.3 | Bylaws      of Astoria Federal Savings and Loan Association, as amended effective      August 19, 2009. (5) |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | 4.4 | Indenture,      dated as of October 28, 1999, between Astoria Financial Corporation and      Wilmington Trust Company, as Debenture Trustee, including as Exhibit A      thereto the Form of Certificate of Exchange Junior Subordinated      Debentures. (6) |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | Form      of Certificate of Junior Subordinated Debenture.  (6) |
|--------|-----|-----------------------------------------------------------------|

|   | 4.6 | Form      of Certificate of Exchange Junior Subordinated Debenture.    (6) |
|--------|-----|----------------------------------------------------------------------------|

|   | 4.7 | Amended      and Restated Declaration of Trust of Astoria Capital Trust I, dated as of      October 28, 1999. (6) |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | 4.8 | Common      Securities Guarantee Agreement of Astoria Financial Corporation, dated as      of October 28, 1999. (6) |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | 4.9 | Form      of Certificate Evidencing Common Securities of Astoria Capital Trust I.      (6) |
|--------|-----|--------------------------------------------------------------------------------------------|

|   | 4.10 | Form      of Exchange Capital Security Certificate for Astoria Capital Trust I.      (6) |
|--------|------|------------------------------------------------------------------------------------------|

|   | 4.11 | Series      A Capital Securities Guarantee Agreement of Astoria Financial Corporation,      dated as of October 28, 1999. (6) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------|

|   | 4.12 | Form      of Series B Capital Securities Guarantee Agreement of Astoria Financial      Corporation. (6) |
|--------|------|---------------------------------------------------------------------------------------------------------|

|  | 4.13 | Form      of Capital Security Certificate of Astoria Capital Trust I.      (6) |
|--|------|--------------------------------------------------------------------------------|

|   | 4.14 | Indenture      between Astoria Financial Corporation and Wilmington Trust Company, as      Debenture Trustee, dated as of October 16, 2002, relating to the Senior      Notes due 2012. (7) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.15 | Form      of 5.75% Senior Note due 2012, Series B.(7) |
|--------|------|-------------------------------------------------------|

|   | 4.16 | Astoria      Financial Corporation Automatic Dividend Reinvestment and Stock Purchase      Plan. (8) |
|--------|------|------------------------------------------------------------------------------------------------------|

----

| Exhibit      No. | Identification of      Exhibit |
|------------------|--------------------------------|

|   | 10.1 | Agreement      dated as of December 28, 2000 by and between Astoria Federal Savings and      Loan Association, Astoria Financial Corporation, the Astoria Federal      Savings and Loan Association Employee Stock Ownership Plan Trust and The      Long Island Savings Bank FSB Employee Stock Ownership Plan Trust.      (4) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Amended      and Restated Loan Agreement by and between Astoria Federal Savings and      Loan Association Employee Stock Ownership Plan Trust and Astoria Financial      Corporation made and entered into as of January 1, 2000.    (4) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Promissory      Note of Astoria Federal Savings and Loan Association Employee Stock      Ownership Plan Trust dated January 1, 2000.(4) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4 | Pledge      Agreement made as of January 1, 2000 by and between Astoria Federal      Savings and Loan Association Employee Stock Ownership Plan Trust and      Astoria Financial Corporation. (4) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.5 | Amended      and Restated Loan Agreement by and between The Long Island Savings Bank      FSB Employee Stock Ownership Plan Trust and Astoria Financial Corporation      made and entered into as of January 1, 2000.(4) |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Promissory      Note of The Long Island Savings Bank FSB Employee Stock Ownership Plan      Trust dated January 1, 2000. (4) |
|--------|------|------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Pledge      Agreement made as of January 1, 2000 by and between The Long Island      Savings Bank FSB Employee Stock Ownership Plan Trust and Astoria Financial      Corporation. (4) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Letter      dated August 29, 2008 from Astoria Financial Corporation to Astoria      Federal Savings and Loan Association Employee Stock Ownership Plan Trust      regarding Amended and Restated Loan Agreement entered into as of January      1, 2000. (9) |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Exhibits      10.9 through 10.54 are management contracts or compensatory plans or      arrangements required to be filed as exhibits to this Form 10-K pursuant      to Item 15(c) of this report. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Astoria      Federal Savings and Loan Association and Astoria Financial Corporation      Directors’ Retirement Plan, as amended and restated effective April 1,      2006 and further amended and restated effective January 1, 2009.      (10) |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | The      Long Island Bancorp, Inc., Non-Employee Directors Retirement Benefit Plan,      as amended June 24, 1997 and as further Amended December 31, 2008.      (10) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.11 | Astoria      Financial Corporation Death Benefit Plan for Outside Directors.      (3) |
|--------|-------|---------------------------------------------------------------------------------------|

|   | 10.12 | Astoria      Financial Corporation Death Benefit Plan for Outside Directors - Amendment      No. 1. (10) |
|--------|-------|----------------------------------------------------------------------------------------------------------|

|   | 10.13 | Deferred      Compensation Plan for Directors of Astoria Financial Corporation as      Amended Effective January 1, 2009.(10) |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------|

|   | 10.14 | 1999      Stock Option Plan for Officers and Employees of Astoria Financial      Corporation, as amended December 29, 2005.(11) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit      No. | Identification of      Exhibit |
|------------------|--------------------------------|

|  | 10.15 | 1999      Stock Option Plan for Outside Directors of Astoria Financial Corporation,      as amended December 29, 2005. (11) |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------|

|   | 10.16 | 2003      Stock Option Plan for Officers and Employees of Astoria Financial      Corporation, as amended December 29, 2005.(11) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------|

|   | 10.17 | 2005      Re-designated, Amended and Restated Stock Incentive Plan for Officers and      Employees of Astoria Financial Corporation.(12) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.18 | Astoria      Financial Corporation 2007 Non-Employee Director Stock Plan.      (13) |
|--------|-------|-------------------------------------------------------------------------------------|

|   | 10.19 | Form      of Restricted Stock Award Notice and General Terms and Conditions by and      between Astoria Financial Corporation and George L. Engelke, Jr. utilized      in connection with the award dated December 20, 2006 pursuant to the      Astoria Financial Corporation 2005 Re-designated, Amended and Restated      Stock Incentive Plan for Officers and Employees.  (14) |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.20 | Form      of Restricted Stock Award Notice and General Terms and Conditions by and      between Astoria Financial Corporation and award recipients other than      George L. Engelke, Jr. utilized in connection with awards dated December      20, 2006 pursuant to the Astoria Financial Corporation 2005 Re-designated,      Amended and Restated Stock Incentive Plan for Officers and Employees.      (14) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.21 | Restricted      Stock Award Notice and General Terms and Conditions by and between Astoria      Financial Corporation and George L. Engelke, Jr. utilized in connection      with the award dated January 28, 2008 pursuant to the Astoria Financial      Corporation 2005 Re-designated, Amended and Restated Stock Incentive Plan      for Officers and Employees. (15) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.22 | Restricted      Stock Award Notice and General Terms and Conditions by and between Astoria      Financial Corporation and Arnold K. Greenberg utilized in connection with      the award dated January 28, 2008 pursuant to the Astoria Financial      Corporation 2005 Re-designated, Amended and Restated Stock Incentive Plan      for Officers and Employees. (15) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.23 | Form      of Restricted Stock Award Notice and General Terms and Conditions by and      between Astoria Financial Corporation and award recipients other than      George L. Engelke, Jr. and Arnold K. Greenberg utilized in connection with      awards dated January 28, 2008 pursuant to the Astoria Financial      Corporation 2005 Re-designated, Amended and Restated Stock Incentive Plan      for Officers and Employees. (15) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.24 | Form      of Restricted Stock Award Notice and General Terms and Conditions by and      between Astoria Financial Corporation and award recipients utilized in      connection with awards dated January 28, 2008 pursuant to the Astoria      Financial Corporation 2007 Non-Employee Director Stock Plan.      (15) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.25 | Restricted      Stock Award Notice and General Terms and Conditions by and between Astoria      Financial Corporation and award recipients utilized in connection with      awards pursuant to the Astoria Financial Corporation 2005 Re-designated,      Amended and Restated Stock Incentive Plan for Officers and Employees.      (16) |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit      No. | Identification of      Exhibit |
|------------------|--------------------------------|

|  | 10.26 | Restricted      Stock Award Notice and General Terms and Conditions by and between Astoria      Financial Corporation and award recipients utilized in connection with      awards pursuant to the Astoria Financial Corporation 2007 Non-employee      Director Stock Plan. (16) |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.27 | Astoria      Federal Savings and Loan Association Annual Incentive Plan for Select      Executives. (17) |
|--------|-------|----------------------------------------------------------------------------------------------------------|

|   | 10.28 | Amendment      No. 1 to the Astoria Federal Savings and Loan Association Annual Incentive      Plan for Select Executives effective December 31, 2008, dated November 12,      2009. (*) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.29 | Astoria      Financial Corporation Executive Officer Annual Incentive Plan, as amended.      (18) |
|--------|-------|---------------------------------------------------------------------------------------------------|

|   | 10.30 | Astoria      Financial Corporation Amended and Restated Employment Agreement with      George L. Engelke, Jr., entered into as of January 1, 2009.      (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.31 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with George L. Engelke, Jr., entered into as of January 1, 2009.      (10) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.32 | Astoria      Financial Corporation Amended and Restated Employment Agreement with      Gerard C. Keegan, entered into as of January 1, 2009.  (10) |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.33 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with Gerard C. Keegan, entered into as of January 1, 2009.      (10) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.34 | Astoria      Financial Corporation Amended and Restated Employment Agreement with      Arnold K. Greenberg entered into as of January 1, 2009.    (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.35 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with Arnold K. Greenberg, entered into as of January 1, 2009.      (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.36 | Astoria      Financial Corporation Amended and Restated Employment Agreement with Gary      T. McCann, entered into as of January 1, 2009.  (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.37 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with Gary T. McCann, entered into as of January 1, 2009.      (10) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.38 | Astoria      Financial Corporation Amended and Restated Employment Agreement with Monte      N. Redman entered into as of January 1, 2009.  (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.39 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with Monte N. Redman, entered into as of January 1, 2009.      (10) |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.40 | Astoria      Financial Corporation Amended and Restated Employment Agreement with Alan      P. Eggleston entered into as of January 1, 2009.  (10) |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.41 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with Alan P. Eggleston, entered into as of January 1, 2009.      (10) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.42 | Astoria      Financial Corporation Amended and Restated Employment Agreement with Frank      E. Fusco, entered into as of January 1, 2009.  (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit      No. | Identification of      Exhibit |
|------------------|--------------------------------|

|   | 10.43 | Astoria      Federal Savings and Loan Association Amended and Restated Employment      Agreement with Frank E. Fusco, entered into as of January 1, 2009.      (10) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.44 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Josie Callari.      (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.45 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Robert J. DeStefano.      (10) |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.46 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Robert T. Volk.      (10) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.47 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Ira M. Yourman.      (10) |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.48 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Brian T. Edwards.      (10) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.49 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Anthony S. DiCostanzo.      (10) |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.50 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and Thomas E. Lavery.      (10) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.51 | Amended      and Restated Change of Control Severance Agreement, entered into as of      January 1, 2009, by and among Astoria Federal Savings and Loan      Association, Astoria Financial Corporation and William J. Mannix, Jr.      (10) |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.52 | Astoria      Federal Savings and Loan Association Excess Benefit Plan, as amended      effective January 1, 2009. (10) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------|

|   | 10.53 | Astoria      Federal Savings and Loan Association Supplemental Benefit Plan, as amended      effective January 1, 2009. (10) |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------|

|   | 10.54 | Astoria      Federal Savings and Loan Association’s Amended and Restated Retirement      Medical and Dental Benefit Policy for Senior Officers (Vice Presidents      & Above). (10) |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1 | Statement      regarding computation of ratios.(*) |
|--------|------|----------------------------------------------------|

|   | 21.1 | Subsidiaries      of Astoria Financial Corporation.(*) |
|--------|------|--------------------------------------------------------|

|   | 23.1 | Consent      of Independent Registered Public Accounting Firm.  (*) |
|--------|------|---------------------------------------------------------------------|

|   | 31.1 | Certifications      of Chief Executive Officer. (*) |
|--------|------|-----------------------------------------------------|

|   | 31.2 | Certifications      of Chief Financial Officer. (*) |
|--------|------|-----------------------------------------------------|

----

| Exhibit      No. | Identification of      Exhibit |
|------------------|--------------------------------|

|   | 32.1 | Written      Statement of Chief Executive Officer furnished pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section      1350.  Pursuant to SEC rules, this exhibit will not be deemed      filed for purposes of Section 18 of the Exchange Act or otherwise subject      to the liability of that section.(*) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Written      Statement of Chief Financial Officer furnished pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section      1350.  Pursuant to SEC rules, this exhibit will not be deemed      filed for purposes of Section 18 of the Exchange Act or otherwise subject      to the liability of that section.(*) |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 99.1 | Proxy      Statement for the Annual Meeting of Shareholders to be held on May 19,      2010, which will be filed with the SEC within 120 days from December 31,      2009, is incorporated herein byreference. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (*) | Filed      herewith.  Copies of exhibits will be provided to shareholders      upon written request to Astoria Financial Corporation, Investor Relations      Department, One Astoria Federal Plaza, Lake Success, New York 11042 at a      charge of $0.10 per page.  Copies are also available at no      charge through the SEC website at www.sec.gov/edgar/searchedgar/webusers.htm. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Incorporated      by reference to (i) Astoria Financial Corporation’s Quarterly Report on      Form 10-Q/A for the quarter ended June 30, 1998, filed with the Securities      and Exchange Commission on September 10, 1998 (File Number 000-22228),      (ii) Astoria Financial Corporation’s Current Report on Form 8-K, dated      September 6, 2006, filed with the Securities and Exchange Commission on      September 11, 2006 (File Number 001-11967) and (iii) Astoria Financial      Corporation’s Current Report on Form 8-K, dated September 20, 2006, filed      with the Securities and Exchange Commission on September 22, 2006 (File      Number 001-11967). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated      by reference to Astoria Financial Corporation’s Current Report on Form      8-K, dated March 19, 2008, filed with the Securities and Exchange      Commission on March 20, 2008 (File Number  001-11967). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated      by reference to Astoria Financial Corporation’s Annual Report on Form 10-K      for the fiscal year ended December 31, 2003, filed with the Securities and      Exchange Commission on March 12, 2004 (File Number    001-11967). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated      by reference to Astoria Financial Corporation’s Annual Report on Form 10-K      for the fiscal year ended December 31, 2000, filed with the Securities and      Exchange Commission on March 26, 2001 (File Number    000-22228). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated      by reference to Astoria Financial Corporation’s Quarterly Report on Form      10-Q for the quarter ended September 30, 2009, filed with the Securities      and Exchange Commission on November 6, 2009 (File Number      001-11967). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Incorporated      by reference to Form S-4 Registration Statement, filed with the Securities      and Exchange Commission on February 18, 2000 (File Number      333-30792). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Incorporated      by reference to Form S-4 Registration Statement, filed with the Securities      and Exchange Commission on December 6, 2002 (File Number      333-101694). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Incorporated      by reference to Form 424B3 Prospectus Supplement, filed with the      Securities and Exchange Commission on February 1, 2000 (File Number      033-98532). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (9) | Incorporated      by reference to Astoria Financial Corporation’s Quarterly Report on Form      10-Q for the quarter ended September 30, 2008, filed with the Securities      and Exchange Commission on November 7, 2008 (File Number      001-11967). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Incorporated      by reference to Astoria Financial Corporation’s Annual Report on Form 10-K      for the fiscal year ended December 31, 2008, filed with the Securities and      Exchange Commission on February 27, 2009 (File Number      001-11967). |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Incorporated      by reference to Astoria Financial Corporation’s Annual Report on Form 10-K      for the fiscal year ended December 31, 2005, filed with the Securities and      Exchange Commission on March 10, 2006 (File Number    001-11967). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Incorporated      by reference to Astoria Financial Corporation’s Schedule 14A Definitive      Proxy Statement filed with the Securities and Exchange Commission on April      11, 2005 (File Number 001-11967). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) | Incorporated      by reference to Astoria Financial Corporation’s Schedule 14A Definitive      Proxy Statement, filed with the Securities and Exchange Commission on      April 10, 2007 (File Number001-11967). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14) | Incorporated      by reference to Astoria Financial Corporation’s Annual Report on Form 10-K      for the fiscal year ended December 31, 2006, filed with the Securities and      Exchange Commission on March 1, 2007 (File Number 001-11967), as amended      by Astoria Financial Corporation’s Annual Report on Form 10-K/A, Amendment      No. 1, for the fiscal year ended December 31, 2006, filed with the      Securities and Exchange Commission on January 25, 2008 (File Number      001-11967). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15) | Incorporated      by reference to Astoria Financial Corporation’s Quarterly Report on Form      10-Q for the quarter ended March 31, 2008, filed with the Securities and      Exchange Commission on May 9, 2008 (File Number  001-11967). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16) | Incorporated      by reference to Astoria Financial Corporation’s Quarterly Report on Form      10-Q for the quarter ended March 31, 2009, filed with the Securities and      Exchange Commission on May 8, 2009 (File Number  001-11967). |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17) | Incorporated      by reference to Astoria Financial Corporation’s Annual Report on Form 10-K      for the fiscal year ended December 31, 1998, filed with the Securities and      Exchange Commission on March 24, 1999 (File Number    000-22228). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (18) | Incorporated      by reference to Astoria Financial Corporation’s Schedule 14A Definitive      Proxy Statement, filed with the Securities and Exchange Commission on      April 13, 2009 (File Number001-11967). |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----