Regulatory Matters

12 Months Ended

Dec. 31, 2015

Regulatory Capital Requirements [Abstract]

Regulatory Matters

Regulatory Matters

Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, or the Reform Act, in July 2013, the federal bank regulatory agencies issued final rules, or the Final Capital Rules, that subjected many savings and loan holding companies, including Astoria Financial Corporation, to consolidated capital requirements effective January 1, 2015. The Final Capital Rules also revised the quantity and quality of required minimum risk-based and leverage capital requirements, consistent with the Reform Act and the Third Basel Accord adopted by the Basel Committee on Banking Supervision.  In doing so, the Final Capital Rules:

• Established a new minimum Common equity tier 1 risk-based capital ratio (common equity tier 1 capital to total risk-weighted assets) of 4.5% and increased the minimum Tier 1 risk-based capital ratio from 4.0% to 6.0%, while maintaining the minimum Total risk-based capital ratio of 8.0% and the minimum Tier 1 leverage capital ratio of 4.0%.

• Revised the rules for calculating risk-weighted assets to enhance their risk sensitivity.

• Phased out trust preferred securities and cumulative perpetual preferred stock as Tier 1 capital.

• Added a requirement to maintain a minimum Conservation Buffer, composed of Common equity tier 1 capital, of 2.5% of risk-weighted assets, to be applied to the new Common equity tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio and the Total risk-based capital ratio, which means that banking organizations, on a fully phased in basis no later than January 1, 2019, must maintain a minimum Common equity tier 1 risk-based capital ratio of 7.0%, a minimum Tier 1 risk-based capital ratio of 8.5% and a minimum Total risk-based capital ratio of 10.5%.

• Changed the definitions of capital categories for insured depository institutions for purposes of the Federal Deposit Insurance Corporation Improvement Act of 1991 prompt corrective action provisions. Under these revised definitions, to be considered well-capitalized, an insured depository institution must have a Tier 1 leverage capital ratio of at least 5.0% a Common equity tier 1 risk-based capital ratio of at least 6.5%, a Tier 1 risk-based capital ratio of at least 8.0% and a Total risk-based capital ratio of at least 10.0%.

The new minimum regulatory capital ratios and changes to the calculation of risk-weighted assets became effective for Astoria Financial Corporation and Astoria Bank on January 1, 2015. The required minimum Conservation Buffer began to be phased in incrementally starting at 0.625% on January 1, 2016 and will increase to 1.25% on January 1, 2017, 1.875% on January 1, 2018 and 2.5% on January 1, 2019. The rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum Conservation Buffer is not met.

At December 31, 2015, the capital levels of both Astoria Financial Corporation and Astoria Bank exceeded all regulatory capital requirements and their regulatory capital ratios were above the minimum levels required to be considered well capitalized for regulatory purposes. The following table sets forth information regarding the regulatory capital requirements applicable to Astoria Financial Corporation and Astoria Bank at December 31, 2015.

	At December 31, 2015
	Actual				Minimum Capital Requirements					To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in Thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Astoria Financial Corporation:
Tier 1 leverage	$	1,521,367	10.21	%		$	596,022	4.00	%		$	745,027	5.00	%
Common equity tier 1 risk-based	1,401,376		16.00			394,092		4.50			569,244		6.50
Tier 1 risk-based	1,521,367		17.37			525,456		6.00			700,608		8.00
Total risk-based	1,620,612		18.51			700,608		8.00			875,760		10.00
Astoria Bank:
Tier 1 leverage	$	1,670,312	11.29	%		$	591,787	4.00	%		$	739,734	5.00	%
Common equity tier 1 risk-based	1,670,312		19.12			393,153		4.50			567,888		6.50
Tier 1 risk-based	1,670,312		19.12			524,204		6.00			698,939		8.00
Total risk-based	1,769,557		20.25			698,939		8.00			873,674		10.00

At December 31, 2014 Astoria Bank was in compliance with all regulatory capital requirements then in effect. The following table sets forth information regarding the regulatory capital requirements applicable to Astoria Bank at December 31, 2014.

	At December 31, 2014
	Actual				Minimum Capital Requirements					To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in Thousands)	Amount		Ratio			Amount		Ratio			Amount		Ratio
Tangible	$	1,632,390	10.62	%		$	230,633	1.50	%		N/A		N/A
Tier 1 leverage	1,632,390		10.62			615,022		4.00			$	768,777	5.00	%
Tier 1 risk-based	1,632,390		17.55			372,118		4.00			558,177		6.00
Total risk-based	1,744,905		18.76			744,236		8.00			930,295		10.00