Astoria to Take Hit on Freddie Stock

Astoria Financial Corp., Lake Success, N.Y., has reported that it expects to record a nontemporary after-tax impairment charge of $9.6 million for the fourth quarter related to $120 million of perpetual preferred stock issued by Freddie Mac.The impairment was previously recorded as an unrealized mark-to-market loss on securities available for sale. (The Freddie Mac stock is held in the company's available-for-sale securities portfolio.) The decision to reclassify the impairment "is based on a very conservative interpretation of accounting literature and does not reflect the expected long-term value of these investment-grade securities," said George L. Engelke Jr., chairman, president, and chief executive officer of Astoria Financial. The company, which is the holding company for Astoria Federal Savings and Loan Association, can be found online at http://www.astoriafederal.com.