x
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QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
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¨
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TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
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United States
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22-3617996
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|
(State
or other jurisdiction of
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(I.R.S.
Employer
|
|
incorporation
or organization)
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Identification
Number)
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Large
accelerated filer ¨
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Accelerated
filer x
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Non-accelerated
filer ¨ (Do not check if a smaller
reporting company)
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Smaller
Reporting company ¨
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Page
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|||
Part
I. Financial Information
|
|||
Item
1.
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Financial
Statements
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3
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|
Consolidated
Balance Sheets as of March 31, 2009 (unaudited) and June 30,
2008
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3
|
||
Consolidated
Statements of Income for the Three and Nine Months Ended March 31, 2009
and 2008 (unaudited)
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4
|
||
Consolidated
Statements of Stockholders’ Equity for the Nine months ended March 31,
2009 and 2008 (unaudited)
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5
|
||
Consolidated
Statements of Cash Flows for the Nine Months Ended March 31, 2009 and 2008
(unaudited)
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6
|
||
Notes
to unaudited Consolidated Financial Statements
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7
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||
Item
2.
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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16
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|
Item
3.
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Quantitative
and Qualitative Disclosures About Market Risk
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27
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Item
4.
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Controls
and Procedures
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28
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Part
II. Other Information
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|||
Item
1.
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Legal
Proceedings
|
29
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|
Item
1A.
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Risk
Factors
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29
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|
Item
2.
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Unregistered
Sales of Equity Securities and Use of Proceeds
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30
|
|
Item
3.
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Defaults
upon Senior Securities
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31
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|
Item
4.
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Submission
of Matters to a Vote of Security Holders
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31
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|
Item
5.
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Other
Information
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31
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|
Item
6.
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Exhibits
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31
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|
Signature
Page
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33
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March
31,
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June
30
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Cash
on hand and in banks
|
$ | 32,525 | $ | 7,332 | ||||
Federal
funds sold and short term investments
|
25,068 | 1,558 | ||||||
Cash
and cash equivalents
|
57,593 | 8,890 | ||||||
Loans,
net of deferred loan fees
|
1,255,404 | 1,020,609 | ||||||
Allowance
for loan losses
|
(21,307 | ) | (13,532 | ) | ||||
Net
Loans
|
1,234,097 | 1,007,077 | ||||||
Securities
available for sale, at fair value
|
119,193 | 22,285 | ||||||
Mortgage-backed
securities held to maturity, estimated fair value of $134,846 and $162,671
at March 31, 2009 and June 30, 2008, respectively
|
133,584 | 163,950 | ||||||
Mortgage-backed
securities available for sale, at fair value
|
142,442 | 149,209 | ||||||
Bank
Owned Life Insurance (at cash surrender value)
|
29,095 | 26,425 | ||||||
Federal
Home Loan Bank of New York stock, at cost
|
24,971 | 21,547 | ||||||
Accrued
interest receivable
|
7,030 | 5,646 | ||||||
Investments
in real estate joint ventures, net
|
5,917 | 5,564 | ||||||
Real
estate held for investment
|
1,337 | 3,681 | ||||||
Office
properties and equipment, net
|
13,760 | 9,287 | ||||||
Other
assets
|
23,374 | 19,733 | ||||||
Total
assets
|
$ | 1,792,393 | $ | 1,443,294 | ||||
Liabilities
|
||||||||
Deposits
|
$ | 1,002,040 | $ | 698,932 | ||||
Borrowings
|
509,743 | 433,672 | ||||||
Advance
payments by borrowers for taxes and insurance
|
7,911 | 7,024 | ||||||
Accrued
taxes payable
|
3,897 | — | ||||||
Official
checks outstanding
|
4,475 | 4,143 | ||||||
Other
liabilities
|
22,154 | 20,548 | ||||||
Total
liabilities
|
1,550,220 | 1,164,319 | ||||||
Stockholders'
Equity
|
||||||||
Common
stock, $0.01 par value; 80,000,000 shares authorized; 40,552,162 issued at
March 31, 2009 and June 30, 2008 37,232,662 outstanding at March 31, 2009
and 40,187,062 outstanding at June 30, 2008
|
130 | 130 | ||||||
Additional
paid-in capital
|
131,640 | 128,656 | ||||||
Unallocated
common stock held by the employee stock ownership plan
|
(14,108 | ) | (14,704 | ) | ||||
Treasury
stock, at cost; 3,319,500 shares at March 31, 2009 and 365,100 shares at
June 30, 2008
|
(52,312 | ) | (5,926 | ) | ||||
Retained
income
|
175,129 | 171,160 | ||||||
Accumulated
other comprehensive gain (loss), net of tax
|
1,694 | (341 | ) | |||||
Total
stockholders' equity
|
242,173 | 278,975 | ||||||
Total
liabilities and stockholders' equity
|
$ | 1,792,393 | $ | 1,443,294 |
Three
months ended
|
Nine
months ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
(in thousands, except per share
data)
|
|||||||||||||||
Interest
income:
|
||||||||||||||||
Interest on mortgage
loans
|
$ | 18,553 | $ | 14,173 | $ | 53,198 | $ | 40,417 | ||||||||
Interest
on securities held to maturity
|
190 | 349 | 725 | 934 | ||||||||||||
Interest
on securities available for sale
|
713 | 373 | 1,346 | 1,418 | ||||||||||||
Interest on mortgage-backed
securities held to maturity
|
1,373 | 1,787 | 4,405 | 5,766 | ||||||||||||
Interest on mortgage-backed
securities available for sale
|
1,763 | 1,285 | 5,436 | 3,147 | ||||||||||||
Interest on federal funds sold and
short term investments
|
6 | 351 | 7 | 1,401 | ||||||||||||
Total interest
income
|
22,598 | 18,318 | 65,117 | 53,083 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
6,680 | 5,943 | 17,796 | 18,464 | ||||||||||||
Borrowings
|
5,118 | 3,651 | 15,058 | 9,213 | ||||||||||||
Total interest
expense
|
11,798 | 9,594 | 32,854 | 27,677 | ||||||||||||
Net interest income before
provision for loan losses
|
10,800 | 8,724 | 32,263 | 25,406 | ||||||||||||
Provision
for loan losses
|
2,400 | 750 | 7,775 | 2,050 | ||||||||||||
Net interest
income
|
8,400 | 7,974 | 24,488 | 23,356 | ||||||||||||
Other
income:
|
||||||||||||||||
Service
charges
|
255 | 292 | 863 | 836 | ||||||||||||
Real
estate operations, net
|
280 | 272 | 982 | 1,036 | ||||||||||||
Income from investments in real
estate joint ventures
|
196 | 281 | 739 | 879 | ||||||||||||
Bank-owned life
insurance
|
294 | 264 | 837 | 787 | ||||||||||||
Net
loss on sale of and write down of securities
|
(237 | ) | (352 | ) | (2,037 | ) | (352 | ) | ||||||||
Other
income
|
34 | 34 | 106 | 108 | ||||||||||||
Total
other income
|
822 | 791 | 1,490 | 3,294 | ||||||||||||
Other
expenses:
|
||||||||||||||||
Compensation, payroll taxes and
fringe benefits
|
4,569 | 3,231 | 13,598 | 9,815 | ||||||||||||
Advertising
|
150 | 128 | 414 | 376 | ||||||||||||
Office occupancy and equipment
expense
|
643 | 435 | 1,566 | 1,223 | ||||||||||||
Data processing service
fees
|
270 | 268 | 799 | 792 | ||||||||||||
Federal insurance
premiums
|
46 | 25 | 106 | 72 | ||||||||||||
Telephone, Stationary, Postage and
Supplies
|
214 | 114 | 475 | 313 | ||||||||||||
Insurance, Legal, Audit and
Accounting
|
427 | 395 | 1,305 | 805 | ||||||||||||
Other
expenses
|
333 | 155 | 805 | 495 | ||||||||||||
Total other
expenses
|
6,652 | 4,751 | 19,068 | 13,891 | ||||||||||||
Income
before income tax expense
|
2,570 | 4,014 | 6,910 | 12,759 | ||||||||||||
Income
tax expense
|
1,067 | 1,649 | 2,862 | 5,226 | ||||||||||||
Net income
|
$ | 1,503 | $ | 2,365 | $ | 4,048 | $ | 7,533 | ||||||||
Basic and fully diluted income per
common share
|
$ | 0.04 | 0.06 | $ | 0.11 | 0.19 |
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
|
— | — | — | — | 7,533 | — | 7,533 | |||||||||||||||||||||
Unrealized
holding gain on securities available for sale arising during year, net of
tax of $1,062
|
— | — | — | — | — | 1,537 | 1,537 | |||||||||||||||||||||
Amortization
related to post- retirement obligations, net of tax of
$46
|
— | — | — | — | — | 69 | 69 | |||||||||||||||||||||
Total
comprehensive income
|
9,139 | |||||||||||||||||||||||||||
Cumulative
transition adjustment related to the adoption of FIN
48
|
— | — | — | — | 900 | — | 900 | |||||||||||||||||||||
ESOP
shares allocated or committed to be released
|
— | 223 | — | 596 | — | — | 819 | |||||||||||||||||||||
Balance
at March 31, 2008
|
$ | 130 | $ | 127,933 | $ | — | $ | (14,903 | ) | $ | 169,733 | $ | 535 | $ | 283,428 | |||||||||||||
Balance
at June 30, 2008
|
$ | 130 | $ | 128,656 | $ | (5,926 | ) | $ | (14,704 | ) | $ | 171,160 | $ | (341 | ) | $ | 278,975 | |||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
— | — | — | — | 4,048 | — | 4,048 | |||||||||||||||||||||
Unrealized
holding gain on securities available for sale arising during year, net of
tax benefit of $675
|
— | — | — | — | — | 862 | 862 | |||||||||||||||||||||
Reclassification
adjustment for losses included in net income, net of tax
$586
|
— | — | — | — | — | 902 | 902 | |||||||||||||||||||||
Amortization
related to post- retirement obligations, net of tax of
$180
|
— | — | — | — | — | 271 | 271 | |||||||||||||||||||||
Total
comprehensive income
|
6,083 | |||||||||||||||||||||||||||
Adoption
of EITF 06-4
|
— | — | — | — | (79 | ) | — | (79 | ) | |||||||||||||||||||
Purchase
of treasury stock
|
— | — | (46,386 | ) | — | — | — | (46,386 | ) | |||||||||||||||||||
Compensation
cost for stock options and restricted stock
|
— | 2,653 | — | — | — | — | 2,653 | |||||||||||||||||||||
ESOP
shares allocated or committed to be released
|
— | 331 | — | 596 | — | — | 927 | |||||||||||||||||||||
Balance
at March 31, 2009
|
$ | 130 | $ | 131,640 | $ | (52,312 | ) | $ | (14,108 | ) | $ | 175,129 | $ | 1,694 | $ | 242,173 |
Nine months
ended
|
||||||||
March 31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Cash flows from operating
activities:
|
||||||||
Net income
|
$ | 4,048 | $ | 7,533 | ||||
Adjustments to reconcile net
income to net cash provided by operating
activities:
|
||||||||
ESOP and stock-based compensation
expense
|
3,580 | 819 | ||||||
Depreciation of premises and
equipment
|
511 | 397 | ||||||
Amortization and accretion of
premiums and discounts, net
|
42 | 187 | ||||||
Provision for losses on
loans
|
7,775 | 2,050 | ||||||
Amortization and accretion of
deferred loan fees, net
|
(650 | ) | (546 | ) | ||||
Increase in deferred
taxes
|
(5,017 | ) | (98 | ) | ||||
Impairment charge on
securities
|
1,976 | 352 | ||||||
Loss on sale of
securities
|
61 | - | ||||||
Increase in cash surrender value
of bank owned life insurance
|
(837 | ) | (787 | ) | ||||
Income from real estate held for
investment
|
(688 | ) | (507 | ) | ||||
Income from real estate joint
ventures
|
(739 | ) | (879 | ) | ||||
Increase in accrued interest
receivable
|
(1,384 | ) | (1,096 | ) | ||||
Decrease (increase) in other
assets
|
387 | (1,134 | ) | |||||
Increase in other
liabilities
|
5,905 | 783 | ||||||
Net cash provided by operating
activities
|
14,970 | 7,074 | ||||||
Cash flows from investing
activities:
|
||||||||
Net increase in loans
receivable
|
(199,552 | ) | (152,002 | ) | ||||
Purchase of mortgage
loans
|
(34,593 | ) | (1,350 | ) | ||||
Purchase of securities available
for sale
|
(108,842 | ) | (17,718 | ) | ||||
Purchase
of mortgage-backed securities available for
sale
|
(10,117 | ) | (82,145 | ) | ||||
Purchase of Federal Home Loan Bank
of New York stock
|
(3,424 | ) | (8,678 | ) | ||||
Principal payments on
mortgage-backed securities held to maturity
|
30,200 | 38,800 | ||||||
Principal payments on
mortgage-backed securities available for sale
|
19,429 | 8,816 | ||||||
Proceeds from calls and maturities
of securities available for sale
|
10,000 | 25,000 | ||||||
Proceeds from sales
of securities available for sale
|
500 | - | ||||||
Purchase of Bank Owned Life
Insurance
|
(1,833 | ) | - | |||||
Additional investment in real
estate held for investment
|
(1,290 | ) | (503 | ) | ||||
Distributions received from real
estate held for investment
|
546 | 426 | ||||||
Additional investment in real
estate joint ventures
|
(780 | ) | - | |||||
Distributions received from real
estate joint ventures
|
1,102 | 1,324 | ||||||
Purchase of fixed
assets
|
(1,293 | ) | (509 | ) | ||||
Net cash used in investing
activities
|
(299,947 | ) | (186,124 | ) | ||||
Cash flows from financing
activities:
|
||||||||
Net increase in
deposits
|
303,108 | 7,496 | ||||||
Purchase of treasury
stock
|
(46,386 | ) | - | |||||
Increase in advance payments by
borrowers for taxes and insurance
|
887 | 653 | ||||||
Proceeds from borrowed
funds
|
341,225 | 195,000 | ||||||
Repayment of borrowed
funds
|
(265,154 | ) | (2,149 | ) | ||||
Net cash provided by financing
activities
|
333,680 | 201,000 | ||||||
Net increase (decrease) in cash
and cash equivalents
|
48,703 | 21,950 | ||||||
Cash and cash equivalents at
beginning of period
|
8,890 | 63,526 | ||||||
Cash and cash equivalents at end
of period
|
$ | 57,593 | $ | 85,476 | ||||
Supplemental cash flow
information:
|
||||||||
Cash paid during the period
for:
|
||||||||
Interest
|
$ | 32,616 | $ | 26,753 | ||||
Income
taxes
|
$ | 4,888 | $ | 5,354 | ||||
Noncash
transfer
|
||||||||
RE held for investment transferred
to Office property and equipment
|
$ | 3,690 | $ | - |
For
the Three Months Ended March 31,
|
For
the Nine Months Ended March 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
thousands, except earnings per share data)
|
||||||||||||||||
Net
income available to common shareholders
|
$ | 1,503 | $ | 2,365 | $ | 4,048 | $ | 7,533 | ||||||||
Weighted
average common shares outstanding - basic
|
36,090 | 39,049 | 37,047 | 39,029 | ||||||||||||
Effect
of dilutive non-vested shares and stock options
outstanding
|
- | - | - | - | ||||||||||||
Weighted
average common shares outstanding - diluted
|
36,090 | 39,049 | 37,047 | 39,029 | ||||||||||||
Earnings
per share-basic
|
$ | 0.04 | $ | 0.06 | $ | 0.11 | $ | 0.19 |
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
|
10,000 | 3.44 | 15.65 | 9.1 | ||||||||||||
Outstanding at March 31,
2009
|
1,848,349 | $ | 3.44 | $ | 15.65 | 9.1 | ||||||||||
Exercisable at March 31,
2009
|
- | $ | - | $ | - | - |
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 March 31,
2009
|
794,823 | $ | 15.65 |
March 31,
2009
|
June 30,
2008
|
|||||||
(In
thousands)
|
||||||||
Conventional one to four
family
|
$ | 280,029 | $ | 223,087 | ||||
Multifamily and commercial real
estate
|
769,083 | 597,171 | ||||||
Second mortgage and equity
loans
|
56,229 | 59,886 | ||||||
Construction
loans
|
142,437 | 138,195 | ||||||
Other loans
|
10,287 | 4,880 | ||||||
Total loans
|
1,258,065 | 1,023,219 | ||||||
Deferred loan fees,
net
|
(2,661 | ) | (2,610 | ) | ||||
Loans, net of deferred loan
fees
|
1,255,404 | 1,020,609 | ||||||
Allowance for loan
losses
|
(21,307 | ) | (13,532 | ) | ||||
Net loans
|
$ | 1,234,097 | $ | 1,007,077 |
Three months
ended
|
Nine months
ended
|
|||||||||||||||
March 31,
|
March 31,
|
|||||||||||||||
(In
thousands)
|
(In
thousands)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Balance at beginning of
period
|
$ | 18,907 | $ | 10,182 | $ | 13,532 | $ | 8,882 | ||||||||
Provisions charged to
operations
|
2,400 | 750 | 7,775 | 2,050 | ||||||||||||
Recoveries of loans previously
charged off
|
— | — | — | — | ||||||||||||
Loans charged
off
|
— | — | — | — | ||||||||||||
Balance at end of
period
|
$ | 21,307 | $ | 10,932 | $ | 21,307 | $ | 10,932 | ||||||||
Allowance for loan losses to
Loans, net of deferred fees at end of period
|
1.70 | % | 1.19 | % |
Fair Value as
of March 31,
|
Quoted Prices
in Active
Markets for
Identical
Assets
|
Significant
Other
Observable
Inputs
|
Unobservable
Inputs
|
|||||||||||||
2009
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Securities available for
sale
|
$ | 119,193 | $ | 31,106 | $ | 88,087 | $ | - | ||||||||
Mortgage-backed securities
available for sale
|
142,442 | - | 142,442 | - | ||||||||||||
$ | 261,635 | $ | 31,106 | $ | 230,529 | $ | - |
March 31, 2009
|
June 30, 2008
|
|||||||
(In thousands)
|
||||||||
Checking
accounts
|
$ | 72,553 | $ | 73,949 | ||||
Money
market deposit accounts
|
131,581 | 57,117 | ||||||
Savings
accounts
|
144,504 | 149,062 | ||||||
Time
deposits
|
653,402 | 418,804 | ||||||
Total
deposits
|
$ | 1,002,040 | $ | 698,932 |
Delinquency Totals (in thousands)
|
||||||||||||||||||||
03/31/09
|
12/31/08
|
09/30/08
|
06/30/08
|
03/31/08
|
||||||||||||||||
30 - 59 days past
due
|
$ | 4,897 | $ | 4,979 | $ | 16,624 | $ | 25,367 | $ | 23,531 | ||||||||||
60 - 89 days past
due
|
2,130 | 5,942 | 1,381 | 18 | 14,034 | |||||||||||||||
90+ days past due and
accruing
|
- | - | - | - | - | |||||||||||||||
Nonaccrual
|
52,260 | 44,067 | 25,337 | 14,211 | 384 | |||||||||||||||
Total
|
$ | 59,287 | $ | 54,988 | $ | 43,342 | $ | 39,596 | $ | 37,949 |
Oritani
Financial Corp. and
Subsidiaries
|
||||||||||||||||||||||||
Average
Balance Sheet and Yield/Rate
Information
|
||||||||||||||||||||||||
For
the Three Months Ended
(unaudited)
|
||||||||||||||||||||||||
March
31, 2009
|
March
31, 2008
|
|||||||||||||||||||||||
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
|
$ | 1,220,390 | $ | 18,553 | 6.08 | % | $ | 885,223 | $ | 14,173 | 6.40 | % | ||||||||||||
Securities
held to maturity
|
24,909 | 190 | 3.05 | % | 20,075 | 349 | 6.95 | % | ||||||||||||||||
Securities
available for sale
|
73,025 | 713 | 3.91 | % | 31,419 | 373 | 4.75 | % | ||||||||||||||||
Mortgage
backed securities held to
maturity
|
138,493 | 1,373 | 3.97 | % | 185,414 | 1,787 | 3.86 | % | ||||||||||||||||
Mortgage
backed securities available for
sale
|
147,157 | 1,763 | 4.79 | % | 99,854 | 1,285 | 5.15 | % | ||||||||||||||||
Federal
funds sold and short term
investments
|
5,107 | 6 | 0.47 | % | 44,737 | 351 | 3.14 | % | ||||||||||||||||
Total
interest-earning assets
|
1,609,081 | 22,598 | 5.62 | % | 1,266,722 | 18,318 | 5.78 | % | ||||||||||||||||
Non-interest-earning
assets
|
120,435 | 73,147 | ||||||||||||||||||||||
Total
assets
|
$ | 1,729,516 | $ | 1,339,869 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
143,321 | 469 | 1.31 | % | 149,229 | 587 | 1.57 | % | ||||||||||||||||
Money
market
|
108,444 | 659 | 2.43 | % | 48,793 | 439 | 3.60 | % | ||||||||||||||||
NOW
accounts
|
73,047 | 161 | 0.88 | % | 73,862 | 203 | 1.10 | % | ||||||||||||||||
Time
deposits
|
620,470 | 5,391 | 3.48 | % | 418,681 | 4,714 | 4.50 | % | ||||||||||||||||
Total
deposits
|
945,282 | 6,680 | 2.83 | % | 690,565 | 5,943 | 3.44 | % | ||||||||||||||||
Borrowings
|
508,368 | 5,118 | 4.03 | % | 340,138 | 3,651 | 4.29 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
1,453,650 | 11,798 | 3.25 | % | 1,030,703 | 9,594 | 3.72 | % | ||||||||||||||||
Non-interest-bearing
liabilities
|
32,709 | 27,751 | ||||||||||||||||||||||
Total
liabilities
|
1,486,359 | 1,058,454 | ||||||||||||||||||||||
Stockholders'
equity
|
243,157 | 281,415 | ||||||||||||||||||||||
Total
liabilities and stockholders'
equity
|
$ | 1,729,516 | $ | 1,339,869 | ||||||||||||||||||||
Net
interest income
|
$ | 10,800 | $ | 8,724 | ||||||||||||||||||||
Net
interest rate spread (1)
|
2.37 | % | 2.06 | % | ||||||||||||||||||||
Net
interest-earning assets (2)
|
$ | 155,431 | $ | 236,019 | ||||||||||||||||||||
Net
interest margin (3)
|
2.68 | % | 2.75 | % | ||||||||||||||||||||
Average
of interest-earning assets to interest-bearing
liabilities
|
1.11 | X | 1.23 | 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 Nine Months Ended (unaudited)
|
||||||||||||||||||||||||
March 31, 2009
|
March 31, 2008
|
|||||||||||||||||||||||
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
|
$ | 1,155,755 | $ | 53,198 | 6.14 | % | $ | 829,967 | $ | 40,417 | 6.49 | % | ||||||||||||
Securities held to
maturity
|
24,733 | 725 | 3.91 | % | 18,753 | 934 | 6.64 | % | ||||||||||||||||
Securities available for
sale
|
43,699 | 1,346 | 4.11 | % | 36,641 | 1,418 | 5.16 | % | ||||||||||||||||
Mortgage backed securities held to
maturity
|
148,556 | 4,405 | 3.95 | % | 199,225 | 5,766 | 3.86 | % | ||||||||||||||||
Mortgage backed securities
available for sale
|
148,429 | 5,436 | 4.88 | % | 79,163 | 3,147 | 5.30 | % | ||||||||||||||||
Federal funds sold and short term
investments
|
1,875 | 7 | 0.50 | % | 41,622 | 1,401 | 4.49 | % | ||||||||||||||||
Total interest-earning
assets
|
1,523,047 | 65,117 | 5.70 | % | 1,205,371 | 53,083 | 5.87 | % | ||||||||||||||||
Non-interest-earning
assets
|
91,501 | 69,018 | ||||||||||||||||||||||
Total
assets
|
$ | 1,614,548 | $ | 1,274,389 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
144,247 | 1,536 | 1.42 | % | 152,576 | 1,885 | 1.65 | % | ||||||||||||||||
Money
market
|
83,402 | 1,735 | 2.77 | % | 44,128 | 1,317 | 3.98 | % | ||||||||||||||||
NOW
accounts
|
74,405 | 486 | 0.87 | % | 73,662 | 640 | 1.16 | % | ||||||||||||||||
Time
deposits
|
520,303 | 14,039 | 3.60 | % | 419,109 | 14,622 | 4.65 | % | ||||||||||||||||
Total
deposits
|
822,357 | 17,796 | 2.89 | % | 689,475 | 18,464 | 3.57 | % | ||||||||||||||||
Borrowings
|
504,384 | 15,058 | 3.98 | % | 280,181 | 9,213 | 4.38 | % | ||||||||||||||||
Total interest-bearing
liabilities
|
1,326,741 | 32,854 | 3.30 | % | 969,656 | 27,677 | 3.81 | % | ||||||||||||||||
Non-interest-bearing
liabilities
|
32,271 | 27,025 | ||||||||||||||||||||||
Total
liabilities
|
1,359,012 | 996,681 | ||||||||||||||||||||||
Stockholders'
equity
|
255,536 | 277,708 | ||||||||||||||||||||||
Total liabilities and
stockholder's equity
|
$ | 1,614,548 | $ | 1,274,389 | ||||||||||||||||||||
Net interest
income
|
$ | 32,263 | $ | 25,406 | ||||||||||||||||||||
Net interest rate spread
(1)
|
2.40 | % | 2.06 | % | ||||||||||||||||||||
Net interest-earning assets
(2)
|
$ | 196,306 | $ | 235,715 | ||||||||||||||||||||
Net interest margin (3)
|
2.82 | % | 2.81 | % | ||||||||||||||||||||
Average of interest-earning assets
to interest-bearing liabilities
|
1.15 | X | 1.24 | 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)
|
$ | 256,533 | 20.1 | % | $ | 102,321 | 8.0 | % | ||||||||
Tier I capital (to risk-weighted
assets)
|
240,479 | 18.8 | 51,160 | 4.0 | ||||||||||||
Tier I capital (to average
assets)
|
240,479 | 13.9 | 69,181 | 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
Ass
ets (3)
|
Net
Interest Income
|
||||||||||||||||||||||||||||||
Cha
nge in Interest
|
Est
imated Increase (Decrease)
|
Inc
rease (Decrease) in
estimated Net interest income
|
||||||||||||||||||||||||||||||
Rat
es (basis points)
(1)
|
Est
imated NPV
(2)
|
Amo
unt
|
Per
cent
|
NPV Ratio (4)
|
Inc
rease (Decrease)
(ba
sis points)
|
Est
imated Net
Int
erest Income
|
Amo
unt
|
Per
cent
|
||||||||||||||||||||||||
(do
llars
in
thousands)
|
||||||||||||||||||||||||||||||||
+300bp
|
$ | 168,474 | $ | (49,355 | ) | (22.66 | )% | 10.10 | % | (199 | ) | $ | 44,973 | $ | (2,540 | ) | (5.35 | )% | ||||||||||||||
+200bp
|
184,010 | (33,819 | ) | (15.53 | ) | 10.78 | (131 | ) | 45,810 | (1,703 | ) | (3.58 | ) | |||||||||||||||||||
+100bp
|
205,187 | (12,642 | ) | (5.80 | ) | 11.68 | (41 | ) | 47,083 | (430 | ) | (0.91 | ) | |||||||||||||||||||
0bp
|
217,829 | - | - | 12.09 | - | 47,513 | - | 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 (1)
|
|||||
January
|
260,000
|
15.99
|
260,000
|
438,698
|
|||||
February
|
130,500
|
13.12
|
130,500
|
308,198
|
|||||
March
|
200,900
|
11.45
|
200,900
|
946,728
|
|||||
591,400
|
$
|
13.81
|
591,400
|
(1)
|
On
March 18, 2009, the Company announced its fourth Share Repurchase Program,
which authorized the purchase of an additional 10% of its publicly-held
outstanding shares of common stock, or 967,828 shares. This
stock repurchase program commenced upon the completion of the third
repurchase program on March 18, 2009. This program has no
expiration date and has 946,728 shares yet to be purchased as of March 31,
2009.
|
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:
May 11, 2009
|
/s/ Kevin J. Lynch
|
||
Kevin
J. Lynch
|
|||
President
and Chief Executive Officer
|
|||
Date:
May 11, 2009
|
/s/ John M. Fields, Jr.
|
||
John
M. Fields, Jr.
|
|||
Executive
Vice President and Chief Financial
Officer
|