x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
|
United States
|
22-3617996
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
Number)
|
N/A
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
|
Non-accelerated
filer ¨ (Do not check if a smaller
reporting company)
|
Smaller
Reporting company ¨
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Page
|
||
Part
I. Financial Information
|
||
Item
1.
|
Financial
Statements
|
3
|
Consolidated
Balance Sheets as of December 31, 2008 (unaudited)
|
||
and
June 30, 2008
|
3
|
|
Consolidated
Statements of Income for the Three and Six Months
|
||
Ended
December 31, 2008 and 2007 (unaudited)
|
4
|
|
Consolidated
Statements of Stockholders’ Equity for the
Six
Months Ended December 31, 2008 and 2007 (unaudited)
|
5
|
|
Consolidated
Statements of Cash Flows for the Six Months
|
||
Ended
December 31, 2008 and 2007 (unaudited)
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6
|
|
Notes
to unaudited Consolidated Financial Statements
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7
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
15
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
25
|
Item
4.
|
Controls
and Procedures
|
27
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Part
II. Other Information
|
||
Item
1.
|
Legal
Proceedings
|
28
|
Item
1A.
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Risk
Factors
|
28
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
29
|
Item
3.
|
Defaults
upon Senior Securities
|
29
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Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
29
|
Item
5.
|
Other
Information
|
30
|
Item
6.
|
Exhibits
|
30
|
Signature
Page
|
32
|
Oritani
Financial Corp. and Subsidiaries
|
Township
of Washington, New Jersey
|
Consolidated
Balance Sheets
|
(in
thousands, except share data)
|
December 31,
|
June 30,
|
|||||||
2008
|
2008
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Cash
on hand and in banks
|
$ | 21,755 | $ | 7,332 | ||||
Federal
funds sold and short term investments
|
46 | 1,558 | ||||||
Cash
and cash equivalents
|
21,801 | 8,890 | ||||||
Loans,
net of deferred loan fees
|
1,222,299 | 1,020,609 | ||||||
Allowance
for loan losses
|
(18,907 | ) | (13,532 | ) | ||||
Net
Loans
|
1,203,392 | 1,007,077 | ||||||
Securities
available for sale, at fair value
|
36,160 | 22,285 | ||||||
Mortgage-backed
securities held to maturity, estimated
|
||||||||
fair
value of $143,735 and $162,671 at
|
||||||||
December
31, 2008 and June 30, 2008, respectively
|
144,238 | 163,950 | ||||||
Mortgage-backed
securities available for sale,
|
||||||||
at
fair value
|
149,332 | 149,209 | ||||||
Bank
Owned Life Insurance (at cash surrender value)
|
28,089 | 26,425 | ||||||
Federal
Home Loan Bank of New York stock, at cost
|
24,150 | 21,547 | ||||||
Accrued
interest receivable
|
6,857 | 5,646 | ||||||
Investments
in real estate joint ventures, net
|
5,231 | 5,564 | ||||||
Real
estate held for investment
|
1,350 | 3,681 | ||||||
Office
properties and equipment, net
|
13,547 | 9,287 | ||||||
Other
assets
|
20,971 | 19,733 | ||||||
Total
assets
|
$ | 1,655,118 | $ | 1,443,294 | ||||
Liabilities
|
||||||||
Deposits
|
$ | 879,946 | $ | 698,932 | ||||
Borrowings
|
491,495 | 433,672 | ||||||
Advance
payments by borrowers for taxes and
|
||||||||
insurance
|
8,153 | 7,024 | ||||||
Accrued
taxes payable
|
516 | — | ||||||
Official
checks outstanding
|
6,498 | 4,143 | ||||||
Other
liabilities
|
21,159 | 20,548 | ||||||
Total
liabilities
|
1,407,767 | 1,164,319 | ||||||
Stockholders'
Equity
|
||||||||
Common
stock, $0.01 par value; 80,000,000 shares authorized;
|
||||||||
40,552,162
issued at December 31, 2008 and June 30, 2008
|
||||||||
37,824,062
outstanding at December 31, 2008 and
|
||||||||
40,187,062
outstanding at June 30, 2008
|
130 | 130 | ||||||
Additional
paid-in capital
|
130,669 | 128,656 | ||||||
Unallocated
common stock held by the employee stock
|
||||||||
ownership
plan
|
(14,308 | ) | (14,704 | ) | ||||
Treasury
stock, at cost; 2,728,100 shares at December 31, 2008
|
||||||||
and
365,100 shares at June 30, 2008
|
(44,143 | ) | (5,926 | ) | ||||
Retained
income
|
173,626 | 171,160 | ||||||
Accumulated
other comprehensive gain (loss), net of tax
|
1,377 | (341 | ) | |||||
Total
stockholders' equity
|
247,351 | 278,975 | ||||||
Total
liabilities and stockholders' equity
|
$ | 1,655,118 | $ | 1,443,294 |
Oritani
Financial Corp. and Subsidiaries
|
Township
of Washington, New Jersey
|
Consolidated
Statements of Income
|
(unaudited)
|
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
(in
thousands, except per share data)
|
|||||||||||||||
Interest
income:
|
||||||||||||||||
Interest
on mortgage loans
|
$ | 17,956 | $ | 13,472 | $ | 34,645 | $ | 26,244 | ||||||||
Interest
on securities held to maturity
|
211 | 314 | 535 | 585 | ||||||||||||
Interest
on securities available for sale
|
404 | 543 | 633 | 1,045 | ||||||||||||
Interest
on mortgage-backed securities held to maturity
|
1,475 | 1,932 | 3,032 | 3,979 | ||||||||||||
Interest
on mortgage-backed securities available for sale
|
1,816 | 1,231 | 3,673 | 1,862 | ||||||||||||
Interest
on federal funds sold and short term investments
|
— | 230 | 1 | 1,050 | ||||||||||||
Total
interest income
|
21,862 | 17,722 | 42,519 | 34,765 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
6,077 | 6,227 | 11,116 | 12,521 | ||||||||||||
Borrowings
|
5,092 | 3,098 | 9,940 | 5,562 | ||||||||||||
Total
interest expense
|
11,169 | 9,325 | 21,056 | 18,083 | ||||||||||||
Net
interest income before provision for loan losses
|
10,693 | 8,397 | 21,463 | 16,682 | ||||||||||||
Provision
for loan losses
|
3,500 | 950 | 5,375 | 1,300 | ||||||||||||
Net
interest income
|
7,193 | 7,447 | 16,088 | 15,382 | ||||||||||||
Other
income:
|
||||||||||||||||
Service
charges
|
323 | 288 | 608 | 544 | ||||||||||||
Real
estate operations, net
|
322 | 382 | 702 | 764 | ||||||||||||
Income
from investments in real estate joint ventures
|
289 | 204 | 543 | 598 | ||||||||||||
Bank-owned
life insurance
|
265 | 263 | 543 | 523 | ||||||||||||
Net
loss on sale of and write down of securities
|
(1,800 | ) | — | (1,800 | ) | — | ||||||||||
Other
income
|
36 | 37 | 72 | 74 | ||||||||||||
Total
other income
|
(565 | ) | 1,174 | 668 | 2,503 | |||||||||||
Operating
expenses:
|
||||||||||||||||
Compensation,
payroll taxes and fringe benefits
|
4,678 | 3,543 | 9,029 | 6,584 | ||||||||||||
Advertising
|
142 | 125 | 264 | 248 | ||||||||||||
Office
occupancy and equipment expense
|
514 | 402 | 923 | 788 | ||||||||||||
Data
processing service fees
|
261 | 278 | 529 | 524 | ||||||||||||
Federal
insurance premiums
|
31 | 24 | 60 | 47 | ||||||||||||
Telephone,
Stationary, Postage and Supplies
|
148 | 100 | 261 | 199 | ||||||||||||
Insurance,
Legal, Audit and Accounting
|
519 | 258 | 878 | 410 | ||||||||||||
Other
expenses
|
249 | 192 | 472 | 340 | ||||||||||||
Total
operating expenses
|
6,542 | 4,922 | 12,416 | 9,140 | ||||||||||||
Income
before income tax expense
|
86 | 3,699 | 4,340 | 8,745 | ||||||||||||
Income
tax expense
|
47 | 1,504 | 1,795 | 3,577 | ||||||||||||
Net
income
|
$ | 39 | $ | 2,195 | $ | 2,545 | $ | 5,168 | ||||||||
Basic
and fully diluted income per common share
|
$ | - | 0.06 | $ | 0.07 | 0.13 |
Oritani
Financial Corp. and Subsidiaries
|
Township
of Washington, New Jersey
|
Consolidated
Statements of Stockholders' Equity
|
Six
Months ended December 31, 2008 and 2007 (unaudited)
|
(In
thousands)
|
Accumu-
|
||||||||||||||||||||||||||||
lated
|
||||||||||||||||||||||||||||
Un-
|
other
|
|||||||||||||||||||||||||||
allocated
|
compre-
|
|||||||||||||||||||||||||||
common
|
hensive
|
Total
|
||||||||||||||||||||||||||
Additional
|
stock
|
income
|
stock-
|
|||||||||||||||||||||||||
Common
|
paid-in
|
Treasury
|
held by
|
Retained
|
(loss),
|
holders'
|
||||||||||||||||||||||
Stock
|
capital
|
Stock
|
ESOP
|
income
|
net of tax
|
equity
|
||||||||||||||||||||||
Balance at
June 30, 2007
|
$ | 130 | $ | 127,710 | $ | — | $ | (15,499 | ) | $ | 161,300 | $ | (1,071 | ) | $ | 272,570 | ||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
— | — | — | — | 5,168 | — | 5,168 | |||||||||||||||||||||
Unrealized
holding gain on securities available for sale arising during year, net of
tax of $531
|
— | — | — | — | — | 732 | 732 | |||||||||||||||||||||
Amortization
related to post- retirement obligations, net of tax of $30
|
— | — | — | — | — | 46 | 46 | |||||||||||||||||||||
Total
comprehensive income
|
5,946 | |||||||||||||||||||||||||||
Cumulative
transition adjustment related to the adoption of FIN 48
|
— | — | — | — | 900 | — | 900 | |||||||||||||||||||||
ESOP
shares allocated or committed to be released
|
— | 180 | — | 397 | — | — | 577 | |||||||||||||||||||||
Balance
at December 31, 2007
|
$ | 130 | $ | 127,890 | $ | — | $ | (15,102 | ) | $ | 167,368 | $ | (293 | ) | $ | 279,993 | ||||||||||||
Balance
at June 30, 2008
|
$ | 130 | $ | 128,656 | $ | (5,926 | ) | $ | (14,704 | ) | $ | 171,160 | $ | (341 | ) | $ | 278,975 | |||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
— | — | — | — | 2,545 | — | 2,545 | |||||||||||||||||||||
Unrealized
holding gain on securities available for sale arising during year, net of
tax benefit of $441
|
— | — | — | — | — | 562 | 562 | |||||||||||||||||||||
Reclassification
adjustment for losses included in net income, net of tax
$586
|
— | — | — | — | — | 902 | 902 | |||||||||||||||||||||
Amortization
related to post- retirement obligations, net of tax of
$169
|
— | — | — | — | — | 254 | 254 | |||||||||||||||||||||
Total
comprehensive income
|
4,263 | |||||||||||||||||||||||||||
Adoption
of EITF 06-4
|
— | — | — | — | (79 | ) | — | (79 | ) | |||||||||||||||||||
Purchase
of treasury stock
|
— | — | (38,217 | ) | — | — | — | (38,217 | ) | |||||||||||||||||||
Compensation
cost for stock options and restricted stock
|
— | 1,756 | — | — | — | — | 1,756 | |||||||||||||||||||||
ESOP
shares allocated or committed to be released
|
— | 257 | — | 396 | — | — | 653 | |||||||||||||||||||||
Balance
at December 31, 2008
|
$ | 130 | $ | 130,669 | $ | (44,143 | ) | $ | (14,308 | ) | $ | 173,626 | $ | 1,377 | $ | 247,351 |
Oritani
Financial Corp. and Subsidiaries
|
Township
of Washington, New Jersey
|
Consolidated
Statements of Cash Flows
|
(unaudited)
|
Six months ended
|
||||||||
December 31,
|
||||||||
2008
|
2007
|
|||||||
|
(in
thousands)
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 2,545 | $ | 5,168 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
ESOP
and stock-based compensation expense
|
2,409 | 577 | ||||||
Depreciation
of premises and equipment
|
321 | 261 | ||||||
Amortization
and accretion of premiums and discounts, net
|
43 | 117 | ||||||
Provision
for losses on loans
|
5,375 | 1,300 | ||||||
Amortization
and accretion of deferred loan fees, net
|
(379 | ) | (380 | ) | ||||
Increase
in deferred taxes
|
(3,187 | ) | (72 | ) | ||||
Impairment
charge on securities
|
1,751 | - | ||||||
Loss
on sale of securities
|
49 | - | ||||||
Increase
in cash surrender value of bank owned life insurance
|
(544 | ) | (523 | ) | ||||
Income
from real estate held for investment
|
(504 | ) | (380 | ) | ||||
Income
from real estate joint ventures
|
(543 | ) | (598 | ) | ||||
Increase
in accrued interest receivable
|
(1,211 | ) | (859 | ) | ||||
Decrease
(increase) in other assets
|
1,175 | (1,598 | ) | |||||
Increase
(decrease) in other liabilities
|
3,552 | (1,684 | ) | |||||
Net
cash provided by operating activities
|
10,852 | 1,329 | ||||||
Cash
flows from investing activities:
|
||||||||
Net
increase in loans receivable
|
(169,080 | ) | (106,846 | ) | ||||
Purchase
of mortgage loans
|
(32,231 | ) | (1,350 | ) | ||||
Purchase
of securities available for sale
|
(25,000 | ) | (7,718 | ) | ||||
Purchase
of mortgage-backed securities available for
sale
|
(10,116 | ) | (56,522 | ) | ||||
Purchase
of Federal Home Loan Bank of New York stock
|
(2,603 | ) | (4,886 | ) | ||||
Principal
payments on mortgage-backed securities held to maturity
|
19,590 | 25,404 | ||||||
Principal
payments on mortgage-backed securities available for sale
|
11,640 | 4,990 | ||||||
Proceeds
from calls and maturities of securities available for sale
|
10,000 | 5,000 | ||||||
Proceeds
from sales of securities available for sale
|
250 | - | ||||||
Purchase
of Bank Owned Life Insurance
|
(1,120 | ) | - | |||||
Additional
investment in real estate held for investment
|
(1,290 | ) | (100 | ) | ||||
Distributions
received from real estate held for investment
|
348 | 266 | ||||||
Additional
investment in real estate joint ventures
|
(30 | ) | - | |||||
Distributions
received from real estate joint ventures
|
843 | 975 | ||||||
Purchase
of fixed assets
|
(891 | ) | (170 | ) | ||||
Net
cash used in investing activities
|
(199,690 | ) | (138,542 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
increase (decrease) in deposits
|
181,014 | (8,578 | ) | |||||
Purchase
of treasury stock
|
(38,217 | ) | - | |||||
Increase
in advance payments by borrowers for taxes and insurance
|
1,129 | 331 | ||||||
Proceeds
from borrowed funds
|
322,225 | 110,000 | ||||||
Repayment
of borrowed funds
|
(264,402 | ) | (1,423 | ) | ||||
Net
cash provided by financing activities
|
201,749 | 100,330 | ||||||
Net
increase (decrease) in cash and cash equivalents
|
12,911 | (36,883 | ) | |||||
Cash
and cash equivalents at beginning of period
|
8,890 | 63,526 | ||||||
Cash
and cash equivalents at end of period
|
$ | 21,801 | $ | 26,643 | ||||
Supplemental
cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 20,819 | $ | 17,422 | ||||
Income
taxes
|
$ | 4,646 | $ | 4,635 | ||||
Noncash
transfer
|
||||||||
RE
held for investment transferred to Office property and
equipment
|
$ | 3,690 | $ | - |
For the Three Months Ended December
31,
|
For the Six Months Ended December
31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
(in
thousands, except earnings per share data)
|
||||||||||||||||
Net
income available to common shareholders
|
$ | 39 | $ | 2,195 | $ | 2,545 | $ | 5,168 | ||||||||
Weighted
average common shares outstanding - basic
|
36,906 | 39,029 | 37,515 | 39,019 | ||||||||||||
Effect
of dilutive non-vested shares and stock options
outstanding
|
- | - | - | - | ||||||||||||
Weighted
average common shares outstanding - diluted
|
36,906 | 39,029 | 37,515 | 39,019 | ||||||||||||
Earnings
per share-basic
|
$ | 0.00 | $ | 0.06 | $ | 0.07 | $ | 0.13 |
Number of
Stock
Options
|
Weighted
Average Grant
Date Fair Value
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life (years)
|
|||||||||||||
Outstanding at June 30, 2008
|
1,788,349 | $ | 3.44 | $ | 15.65 | 10.0 | ||||||||||
Granted
|
70,000 | 3.44 | 15.62 | 10.0 | ||||||||||||
Exercised
|
- | - | - | |||||||||||||
Forfeited
|
- | - | - | |||||||||||||
Outstanding
at December 31, 2008
|
1,858,349 | $ | 3.44 | $ | 15.65 | 9.4 | ||||||||||
Exercisable
at December 31, 2008
|
- | $ | - | $ | - | - |
Number
of
Shares
Awarded
|
Weighted
Average
Grant
Date
Fair
Value
|
|||||||
Non-vested
at June 30, 2008
|
794,823 | $ | 15.65 | |||||
Granted
|
- | - | ||||||
Vested
|
- | - | ||||||
Forfeited
|
- | - | ||||||
Non-vested
at December 31, 2008
|
794,823 | $ | 15.65 |
December 31, 2008
|
June 30, 2008
|
|||||||
(In
thousands)
|
||||||||
Conventional
one to four family
|
$ | 285,602 | $ | 223,087 | ||||
Multifamily
and commercial real estate
|
697,911 | 597,171 | ||||||
Second
mortgage and equity loans
|
59,454 | 59,886 | ||||||
Construction
loans
|
174,484 | 138,195 | ||||||
Other
loans
|
7,651 | 4,880 | ||||||
Total
loans
|
1,225,102 | 1,023,219 | ||||||
Deferred
loan fees, net
|
(2,803 | ) | (2,610 | ) | ||||
Loans,
net of deferred loan fees
|
1,222,299 | 1,020,609 | ||||||
Allowance
for loan losses
|
(18,907 | ) | (13,532 | ) | ||||
Net
loans
|
$ | 1,203,392 | $ | 1,007,077 |
Three
months ended
|
Six
months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
(In thousands)
|
(In thousands)
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Balance
at beginning of period
|
$ | 15,407 | $ | 9,232 | $ | 13,532 | $ | 8,882 | ||||||||
Provisions
charged to operations
|
3,500 | 950 | 5,375 | 1,300 | ||||||||||||
Recoveries
of loans previously charged off
|
— | — | — | — | ||||||||||||
Loans
charged off
|
— | — | — | — | ||||||||||||
Balance
at end of period
|
$ | 18,907 | $ | 10,182 | $ | 18,907 | $ | 10,182 |
Allowance
for loan losses to Loans, net of deferred fees at end of
period
|
1.54 | % | 1.16 | % |
Assets:
|
Fair Value as
of December
31, 2008
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
||||||||||||
Securities available for
sale
|
$ | 36,160 | $ | 8,369 | $ | 27,791 | $ | - | ||||||||
Mortgage-backed
securities available for sale
|
149,332 | - | 149,332 | - | ||||||||||||
$ | 185,492 | $ | 8,369 | $ | 177,123 | $ | - |
December 31, 2008
|
June 30, 2008
|
|||||||
(In
thousands)
|
||||||||
Checking
accounts
|
$ | 74,830 | $ | 73,949 | ||||
Money
market deposit accounts
|
80,560 | 57,117 | ||||||
Savings
accounts
|
142,048 | 149,062 | ||||||
Time
deposits
|
582,508 | 418,804 | ||||||
Total
deposits
|
$ | 879,946 | $ | 698,932 |
Delinquency
Totals (in
thousands)
|
||||||||||||||||||||
12/31/08
|
09/30/08
|
06/30/08
|
03/31/08
|
12/31/07
|
||||||||||||||||
30
- 59 days past due
|
$ | 4,979 | $ | 16,624 | $ | 25,367 | $ | 23,531 | $ | 343 | ||||||||||
60
- 89 days past due
|
5,942 | 1,381 | 18 | 14,034 | - | |||||||||||||||
90+
days past due and accruing
|
- | - | - | - | - | |||||||||||||||
Nonaccrual
|
44,067 | 25,337 | 14,211 | 384 | - | |||||||||||||||
Total
|
$ | 54,988 | $ | 43,342 | $ | 39,596 | $ | 37,949 | $ | 343 |
Oritani
Financial Corp and Subsidiaries
|
||||||||||||||||||||||||
Average
Balance Sheetand Yield / Rate Information
|
||||||||||||||||||||||||
Forthe Three Months Ended
(unaudited)
|
||||||||||||||||||||||||
December31,2008
|
December 31, 2007
|
|||||||||||||||||||||||
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
|
$ | 1,177,756 | $ | 17,956 | 6.10 | % | $ | 828,350 | $ | 13,472 | 6.51 | % | ||||||||||||
Securities
held to maturity
|
25,264 | 211 | 3.34 | % | 19,003 | 314 | 6.61 | % | ||||||||||||||||
Securities
available for sale
|
35,884 | 404 | 4.50 | % | 41,038 | 543 | 5.29 | % | ||||||||||||||||
Mortgage
backed securities held to maturity
|
148,392 | 1,475 | 3.98 | % | 202,320 | 1,932 | 3.82 | % | ||||||||||||||||
Mortgage
backed securities available for sale
|
147,768 | 1,816 | 4.92 | % | 91,660 | 1,231 | 5.37 | % | ||||||||||||||||
Federal
funds sold and short term investments
|
284 | 0 | 0.00 | % | 19,174 | 230 | 4.80 | % | ||||||||||||||||
Total
interest-earning assets
|
1,535,348 | 21,862 | 5.70 | % | 1,201,545 | 17,722 | 5.90 | % | ||||||||||||||||
Non-interest-earning
assets
|
79,430 | 65,065 | ||||||||||||||||||||||
Total
assets
|
$ | 1,614,778 | $ | 1,266,610 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
142,698 | 522 | 1.46 | % | 152,589 | 649 | 1.70 | % | ||||||||||||||||
Money
market
|
78,169 | 602 | 3.08 | % | 42,638 | 440 | 4.13 | % | ||||||||||||||||
NOW
accounts
|
76,488 | 161 | 0.84 | % | 72,224 | 219 | 1.21 | % | ||||||||||||||||
Time
deposits
|
515,954 | 4,792 | 3.72 | % | 416,865 | 4,919 | 4.72 | % | ||||||||||||||||
Total
deposits
|
813,309 | 6,077 | 2.99 | % | 684,316 | 6,227 | 3.64 | % | ||||||||||||||||
Borrowings
|
516,039 | 5,092 | 3.95 | % | 278,225 | 3,098 | 4.45 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
1,329,348 | 11,169 | 3.36 | % | 962,541 | 9,325 | 3.88 | % | ||||||||||||||||
Non-interest-bearing
liabilities
|
31,969 | 25,907 | ||||||||||||||||||||||
Total
liabilities
|
1,361,317 | 988,448 | ||||||||||||||||||||||
Stockholders'
equity
|
253,461 | 278,162 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 1,614,778 | $ | 1,266,610 | ||||||||||||||||||||
Net
interest income
|
$ | 10,693 | $ | 8,397 | ||||||||||||||||||||
Net
interest rate spread (1)
|
2.34 | % | 2.02 | % | ||||||||||||||||||||
Net
interest-earning assets (2)
|
$ | 206,000 | $ | 239,004 | ||||||||||||||||||||
Net
interest margin (3)
|
2.79 | % | 2.80 | % | ||||||||||||||||||||
Average
of interest-earning assets to interest-bearing liabilities
|
1.15 | X | 1.25 | X |
(1)
|
Net
interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
|
(2)
|
Net
interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
|
(3)
|
Net
interest margin represents net interest income divided by average total
interest-earning assets.
|
Oritani Financial Corp. and Subsidiaries
|
||||||||||||||||||||||||
Average Balance Sheet and Yield/Rate Information
|
||||||||||||||||||||||||
For the Six Months Ended (unaudited)
|
||||||||||||||||||||||||
December 31, 2008
|
December 31, 2007
|
|||||||||||||||||||||||
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
Average
Outstanding
Balance
|
Interest
Earned/
Paid
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Interest-earning
assets:
|
||||||||||||||||||||||||
Loans
|
$ | 1,123,438 | $ | 34,645 | 6.17 | % | $ | 802,339 | $ | 26,244 | 6.54 | % | ||||||||||||
Securities
held to maturity
|
24,646 | 535 | 4.34 | % | 18,092 | 585 | 6.47 | % | ||||||||||||||||
Securities
available for sale
|
29,035 | 633 | 4.36 | % | 39,252 | 1,045 | 5.32 | % | ||||||||||||||||
Mortgage
backed securities held to maturity
|
153,587 | 3,032 | 3.95 | % | 206,130 | 3,979 | 3.86 | % | ||||||||||||||||
Mortgage
backed securities available for sale
|
149,065 | 3,673 | 4.93 | % | 68,817 | 1,862 | 5.41 | % | ||||||||||||||||
Federal
funds sold and short term investments
|
258 | 1 | 0.78 | % | 40,064 | 1,050 | 5.24 | % | ||||||||||||||||
Total
interest-earning assets
|
1,480,029 | 42,519 | 5.75 | % | 1,174,694 | 34,765 | 5.92 | % | ||||||||||||||||
Non-interest-earning
assets
|
77,036 | 66,954 | ||||||||||||||||||||||
Total
assets
|
$ | 1,557,065 | $ | 1,241,648 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
144,709 | 1,069 | 1.48 | % | 154,183 | 1,298 | 1.68 | % | ||||||||||||||||
Money
market
|
70,882 | 1,076 | 3.04 | % | 42,036 | 877 | 4.17 | % | ||||||||||||||||
NOW
accounts
|
75,084 | 323 | 0.86 | % | 73,321 | 437 | 1.19 | % | ||||||||||||||||
Time
deposits
|
470,220 | 8,648 | 3.68 | % | 419,391 | 9,909 | 4.73 | % | ||||||||||||||||
Total
deposits
|
760,895 | 11,116 | 2.92 | % | 688,931 | 12,521 | 3.63 | % | ||||||||||||||||
Borrowings
|
502,393 | 9,940 | 3.96 | % | 250,203 | 5,562 | 4.45 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
1,263,288 | 21,056 | 3.33 | % | 939,134 | 18,083 | 3.85 | % | ||||||||||||||||
Non-interest-bearing
liabilities
|
32,051 | 26,660 | ||||||||||||||||||||||
Total
liabilities
|
1,295,339 | 965,794 | ||||||||||||||||||||||
Stockholders'
equity
|
261,726 | 275,854 | ||||||||||||||||||||||
Total
liabilities and stockholder's equity
|
$ | 1,557,065 | $ | 1,241,648 | ||||||||||||||||||||
Net
interest income
|
$ | 21,463 | $ | 16,682 | ||||||||||||||||||||
Net
interest rate spread (1)
|
2.42 | % | 2.07 | % | ||||||||||||||||||||
Net
interest-earning assets (2)
|
$ | 216,741 | $ | 235,560 | ||||||||||||||||||||
Net
interest margin (3)
|
2.90 | % | 2.84 | % | ||||||||||||||||||||
Average
of interest-earning assets to interest-bearing liabilities
|
1.17 | X | 1.25 | X |
(1)
|
Net
interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
|
(2)
|
Net
interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
|
(3)
|
Net
interest margin represents net interest income divided by average total
interest-earning assets.
|
Actual
|
Required
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Total
capital (to risk-weighted assets)
|
$ | 261,358 | 21.3 | % | $ | 98,174 | 8.0 | % | ||||||||
Tier
I capital (to risk-weighted assets)
|
245,974 | 20.0 | 49,087 | 4.0 | ||||||||||||
Tier
I capital (to average assets)
|
245,974 | 15.2 | 64,591 | 4.0 |
|
(i)
|
originating
multi-family and commercial real estate loans that generally tend to have
shorter interest duration and generally reset at five
years;
|
|
(ii)
|
originating
certain construction and commercial real estate loans that have short
maturities and/or monthly interest
resets.
|
|
(iii)
|
investing
in shorter duration mortgage-backed securities and securities with call
provisions that are considered likely to be invoked;
and
|
|
(iv)
|
obtaining
general financing through longer-term Federal Home Loan Bank
advances.
|
Net Portfolio Value |
NPV
as a Percent of Present Value of
Assets
(3)
|
Net
Interest Income
|
||||||||||||||||||||||||||||||||
Estimated
Increase (Decrease)
|
Increase
(Decrease) in
estimated
Net interest income
|
|||||||||||||||||||||||||||||||||
Change
in Interest
Rates
(basis points)
(1)
|
Estimated
NPV
(2)
|
Amount
|
Percent
|
NPV
Ratio (4)
|
Increase
(Decrease)
(basis
points)
|
Estimated
Net
Interest
Income
|
Amount
|
Percent
|
||||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||||||||||||
+300bp
|
$ | 160,886 | $ | (44,825 | ) | (21.79 | )% | 10.50 | % | (193 | ) | $ | 34,889 | $ | (4,804 | ) | (12.10 | )% | ||||||||||||||||
+200bp
|
178,389 | $ | (27,322 | ) | (13.28 | )% | 11.36 | % | (108 | ) | 36,632 | $ | (3,061 | ) | (7.71 | )% | ||||||||||||||||||
+100bp
|
195,916 | $ | (9,795 | ) | (4.76 | )% | 12.13 | % | (30 | ) | 38,579 | $ | (1,114 | ) | (2.81 | )% | ||||||||||||||||||
0bp
|
|
205,711 | $ | - | - | 12.43 | % | - | 39,693 | $ | - | 0.00 | % |
(1)
|
Assumes
an instantaneous uniform change in interest rates at all
maturities.
|
(2)
|
NPV
is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet
contracts.
|
(3)
|
Present
value of assets represents the discounted present value of incoming cash
flows on interest-earning
assets.
|
(4)
|
NPV
Ratio represents NPV divided by the present value of
assets.
|
Total Number of
|
Maximum Number of
|
|||||||||||||||
Total Number
|
Average
|
Shares Purchased
|
Shares That May Yet
|
|||||||||||||
of Shares
|
Price Paid
|
as
part of Publicly
|
Be Purchased Under
|
|||||||||||||
Period
|
Repurchased
|
Per Share
|
Announced Plans
|
the Plans
|
||||||||||||
October
|
1,115,700 | 16.03 | 1,115,700 | 57,308 | ||||||||||||
November
|
- | - | - | 1,061,098 | ||||||||||||
December
|
362,400 | 16.22 | 362,400 | 698,698 | ||||||||||||
1,478,100 | $ | 16.08 | 1,478,100 |
Name
|
For
|
Withheld
|
||||||
James
J. Doyle, Jr.
|
35,724,565 | 590,767 | ||||||
John
J. Skelly, Jr.
|
35,624,865 | 690,467 |
For
|
Against
|
Abstain
|
Broker Non-Vote
|
|||||||||
33,359,879
|
876,567 | 57,262 | 2,021,624 |
For
|
Against
|
Abstain
|
||||||
36,179,455
|
86,867 | 49,010 |
3.1
|
Charter
of Oritani Financial Corp. *
|
3.2
|
Bylaws
of Oritani Financial Corp. *
|
4
|
Form
of Common Stock Certificate of Oritani Financial Corp.
*
|
10.1
|
Employment
Agreement between Oritani Financial Corp. and Kevin J.
Lynch*
|
10.2
|
Form
of Employment Agreement between Oritani Financial Corp. and executive
officers*
|
10.3
|
Oritani
Bank Director Retirement Plan*
|
10.4
|
Oritani
Bank Benefit Equalization Plan*
|
10.5
|
Oritani
Bancorp, Inc. Executive Supplemental Retirement Income
Agreement*
|
10.6
|
Form
of Employee Stock Ownership Plan*
|
10.7
|
Director
Deferred Fee Plan*
|
10.8
|
Oritani
Financial Corp. 2007 Equity Incentive
Plan**
|
31.1
|
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
31.2
|
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002
|
32
|
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002
|
*
|
Filed
as exhibits to the Company’s Registration Statement on Form S-1, and any
amendments thereto, with the Securities and Exchange Commission
(Registration No. 333-137309).
|
**
|
Filed
as part of the Company’s definitive proxy statement, with the Securities
and Exchange Commission on March 20,
2008.
|
***
|
Available
on our website www.oritani.com
|
ORITANI
FINANCIAL CORP.
|
||
Date:
|
February
9, 2009
|
/s/ Kevin J. Lynch
|
Kevin
J. Lynch
|
||
President
and Chief Executive Officer
|
||
Date:
|
February
9, 2009
|
/s/ John M. Fields, Jr.
|
John
M. Fields, Jr.
|
||
Executive
Vice President and Chief Financial
Officer
|