Regulatory Matters

12 Months Ended

Dec. 31, 2012

Regulatory Matters

Regulatory Matters

(16) Regulatory Matters

Federal law requires that savings associations, such as Astoria Federal, maintain minimum capital requirements.  These capital standards are required to be no less stringent than standards applicable to national banks.  At December 31, 2012 and 2011, Astoria Federal was in compliance with all regulatory capital requirements.

The Federal Deposit Insurance Corporation Improvement Act of 1991, or FDICIA, established a system of prompt corrective action to resolve the problems of undercapitalized institutions.  The regulators adopted rules which require them to take action against undercapitalized institutions, based upon the five categories of capitalization which FDICIA created: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.”  The rules adopted generally provide that an insured institution whose capital ratios exceed the specified targets and is not subject to any written agreement, order, capital directive or prompt corrective action directive issued by the primary federal regulator shall be considered a “well capitalized” institution.  At December 31, 2012 and 2011, all of Astoria Federal’s ratios were above the minimum levels required to be considered “well capitalized.”

The following tables set forth information regarding the regulatory capital requirements applicable to Astoria Federal at the dates indicated.

	At December 31, 2012
	Actual				Minimum Capital Requirements				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in Thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tangible	$	1,500,927	9.24	%	$	243,769	1.50	%	N/A		N/A
Tier 1 leverage	1,500,927		9.24		650,050		4.00		$	812,563	5.00	%
Tier 1 risk-based	1,500,927		15.23		394,230		4.00		591,344		6.00
Total risk-based	1,624,730		16.49		788,459		8.00		985,574		10.00

	At December 31, 2011
	Actual				Minimum Capital Requirements				To be Well Capitalized Under Prompt Corrective Action Provisions
(Dollars in Thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Tangible	$	1,459,064	8.70	%	$	251,532	1.50	%	N/A		N/A
Tier 1 leverage	1,459,064		8.70		670,751		4.00		$	838,439	5.00	%
Tier 1 risk-based	1,459,064		14.80		394,259		4.00		591,389		6.00
Total risk-based	1,584,744		16.08		788,519		8.00		985,649		10.00

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires the federal banking agencies to establish consolidated risk-based and leverage capital requirements for insured depository institutions, depository institution holding companies and systemically important nonbank financial companies.  These requirements must be no less than those to which insured depository institutions are currently subject to.  As a result, by no later than July 2015, we will become subject to consolidated capital requirements which we have not been subject to previously.  Proposed regulations implementing these requirements have not yet been finalized.