Astoria Financial reshuffles management

Astoria Financial Corp. of Lake Success filed notice with federal securities regulators late Thursday of a corporate reorganization and a series of management changes.

The corporate parent of one of the largest Long Island-based banks, the 85-branch Astoria Federal Savings and Loan Association, said in a filing with the Securities and Exchange Commission that Gerard C. Keegan, 65, had been appointed effective Jan. 1 vice chairman, senior executive vice president and chief operating officer of both the holding company and the bank. He’s now vice chairman and chief administrative officer of both.

Frank E. Fusco, 48, now executive vice president, treasurer and chief financial officer, was named senior executive vice president, treasurer and chief financial officer.

Also effective Jan. 1, the holding company and Astoria Federal will reorganize the management and support of its business into four divisions: operating, financial services, legal/compliance and support services, all reporting directly to Monte N. Redman, president and chief executive of the parent and Astoria Federal.

Keegan will oversee the operating division, which includes the retail banking group, and those handling residential and multifamily mortgages and business loans.

Astoria Financial reported Oct. 19 that net income had fallen by 48 percent in the third quarter from a year earlier, to $11.2 million or 12 cents a share. In a statement then, Redmond blamed a decrease in average interest-earning assets of almost $400 million from this year’s second quarter, and a noncash increase of more than $3 million in employee stock ownership expense.

He added, “We continue to operate in a challenging environment; economic growth remains weak, unemployment stubbornly remains elevated and home values continue to remain soft.” But he expressed optimism about the current quarter and next year.

Astoria Financial then had assets of $17.0 billion.

In November, Fitch Ratings downgraded its outlook for Astoria Financial to "negative" from "stable," citing the savings and loan association’s weak financial performance versus that of similar companies.

Astoria’s stock closed at $8.55, up 19 cents. It’s been trading at the lower end of its 52-week range of $6.58 to $15.25.