x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
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)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o (Do not check if a smaller
reporting company)
|
Smaller
Reporting company o
|
Page
|
||
Part
I. Financial Information
|
||
Item
1.
|
Financial
Statements
|
3
|
Consolidated
Balance Sheets as of December 31, 2009 (unaudited)
|
||
and
June 30, 2009
|
3
|
|
Consolidated
Statements of Income for the Three and Six Months
|
||
Ended
December 31, 2009 and 2008 (unaudited)
|
4
|
|
Consolidated
Statements of Stockholders’ Equity for the
|
||
Six
Months Ended December 31, 2009 and 2008 (unaudited)
|
5
|
|
Consolidated
Statements of Cash Flows for the Six Months
|
||
Ended
December 31, 2009 and 2008 (unaudited)
|
6
|
|
Notes
to unaudited Consolidated Financial Statements
|
7
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition
|
|
and
Results of Operations
|
23
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
34
|
Item
4.
|
Controls
and Procedures
|
35
|
Part
II. Other Information
|
||
Item
1.
|
Legal
Proceedings
|
36
|
Item
1A.
|
Risk
Factors
|
36
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
37
|
Item
3.
|
Defaults
upon Senior Securities
|
37
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
37
|
Item
5.
|
Other
Information
|
38
|
Item
6.
|
Exhibits
|
38
|
Signature
Page
|
39
|
December 31,
|
June 30,
|
|||||||
2009
|
2009
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Cash
on hand and in banks
|
$ | 5,479 | $ | 7,729 | ||||
Federal
funds sold and short term investments
|
20,853 | 127,640 | ||||||
Cash
and cash equivalents
|
26,332 | 135,369 | ||||||
Loans,
net
|
1,357,157 | 1,278,623 | ||||||
Securities
available for sale, at market value
|
320,439 | 144,419 | ||||||
Mortgage-backed
securities held to maturity, market value of $88,223 and $120,381 at
December 31, 2009 and June 30, 2009, respectively
|
86,182 | 118,817 | ||||||
Mortgage-backed securities
available for sale, at market
value
|
98,513 | 128,603 | ||||||
Bank
Owned Life Insurance (at cash surrender value)
|
29,973 | 29,385 | ||||||
Federal
Home Loan Bank of New York stock ("FHLB"), at cost
|
25,481 | 25,549 | ||||||
Accrued
interest receivable
|
8,786 | 7,967 | ||||||
Investments
in real estate joint ventures, net
|
5,836 | 5,767 | ||||||
Real
estate held for investment
|
1,222 | 1,338 | ||||||
Real
estate owned
|
600 | — | ||||||
Office
properties and equipment, net
|
14,730 | 13,777 | ||||||
Other
assets
|
31,623 | 23,907 | ||||||
Total
Assets
|
$ | 2,006,874 | $ | 1,913,521 | ||||
Liabilities
|
||||||||
Deposits
|
$ | 1,210,507 | $ | 1,127,630 | ||||
Borrowings
|
507,439 | 508,991 | ||||||
Advance payments by borrowers for
taxes and insurance
|
9,347 | 8,301 | ||||||
Accrued
taxes payable
|
2,781 | — | ||||||
Official
checks outstanding
|
3,884 | 2,699 | ||||||
Other
liabilities
|
24,966 | 25,802 | ||||||
Total
liabilities
|
1,758,924 | 1,673,423 | ||||||
Stockholders'
Equity
|
||||||||
Common
stock, $0.01 par value; 80,000,000 shares authorized;
40,552,162
issued at December 31, 2009 and June 30, 2009
37,041,184
outstanding at December 31, 2009 and
37,133,684
outstanding at June 30, 2009
|
130 | 130 | ||||||
Additional
paid-in capital
|
132,339 | 130,375 | ||||||
Unallocated
common stock held by the employee stock ownership plan
|
(13,512 | ) | (13,909 | ) | ||||
Treasury
stock, at cost; 3,510,978 shares at December 31, 2009 and 3,418,478 shares
at June 30, 2009
|
(54,649 | ) | (53,418 | ) | ||||
Retained
income
|
182,528 | 176,199 | ||||||
Accumulated
other comprehensive income, net of tax
|
1,114 | 721 | ||||||
Total
stockholders' equity
|
247,950 | 240,098 | ||||||
Total
Liabilities and Stockholders' Equity
|
$ | 2,006,874 | $ | 1,913,521 |
Three
months ended
|
Six
months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
unaudited
|
||||||||||||||||
Interest
income:
|
||||||||||||||||
Interest
on mortgage loans
|
$ | 20,775 | $ | 17,956 | $ | 42,065 | $ | 34,645 | ||||||||
Interest
on securities held to maturity and dividends on FHLB stock
|
360 | 211 | 717 | 535 | ||||||||||||
Interest
on securities available for sale
|
2,136 | 404 | 3,738 | 633 | ||||||||||||
Interest
on mortgage-backed securities held to maturity
|
887 | 1,475 | 1,918 | 3,032 | ||||||||||||
Interest
on mortgage-backed securities available for sale
|
1,281 | 1,816 | 2,718 | 3,673 | ||||||||||||
Interest
on federal funds sold and short term investments
|
28 | — | 90 | 1 | ||||||||||||
Total
interest income
|
25,467 | 21,862 | 51,246 | 42,519 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
5,810 | 6,077 | 12,123 | 11,116 | ||||||||||||
Borrowings
|
5,247 | 5,092 | 10,494 | 9,940 | ||||||||||||
Total
interest expense
|
11,057 | 11,169 | 22,617 | 21,056 | ||||||||||||
Net
interest income before provision for loan losses
|
14,410 | 10,693 | 28,629 | 21,463 | ||||||||||||
Provision
for loan losses
|
2,500 | 3,500 | 5,050 | 5,375 | ||||||||||||
Net
interest income
|
11,910 | 7,193 | 23,579 | 16,088 | ||||||||||||
Other
income:
|
||||||||||||||||
Service
charges
|
328 | 323 | 756 | 608 | ||||||||||||
Real
estate operations, net
|
321 | 322 | 710 | 702 | ||||||||||||
Income
from investments in real estate joint ventures
|
256 | 289 | 608 | 543 | ||||||||||||
Bank-owned
life insurance
|
294 | 265 | 588 | 543 | ||||||||||||
Net
gain on sale of assets
|
— | — | 1,043 | — | ||||||||||||
Net
loss on sales of and writedowns of securities
|
(191 | ) | (1,800 | ) | (190 | ) | (1,800 | ) | ||||||||
Other
income
|
59 | 36 | 98 | 72 | ||||||||||||
Total
other income (loss)
|
1,067 | (565 | ) | 3,613 | 668 | |||||||||||
Other
expenses:
|
||||||||||||||||
Compensation,
payroll taxes and fringe benefits
|
5,458 | 4,678 | 10,216 | 9,029 | ||||||||||||
Advertising
|
169 | 142 | 329 | 264 | ||||||||||||
Office
occupancy and equipment expense
|
575 | 514 | 1,104 | 923 | ||||||||||||
Data
processing service fees
|
279 | 261 | 546 | 529 | ||||||||||||
Federal
insurance premiums
|
585 | 31 | 1,159 | 60 | ||||||||||||
Other
expenses
|
1,100 | 916 | 1,640 | 1,611 | ||||||||||||
Total
operating expenses
|
8,166 | 6,542 | 14,994 | 12,416 | ||||||||||||
Income
before income tax expense
|
4,811 | 86 | 12,198 | 4,340 | ||||||||||||
Income
tax expense
|
1,882 | 47 | 4,786 | 1,795 | ||||||||||||
Net
income
|
$ | 2,929 | $ | 39 | $ | 7,412 | $ | 2,545 | ||||||||
Net
income available to common stockholders
|
$ | 2,822 | $ | 38 | $ | 7,206 | $ | 2,495 | ||||||||
Basic
and fully diluted income per common share
|
$ | 0.08 | $ | - | $ | 0.20 | $ | 0.07 |
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, 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
|
— | — | — | — | — | 562 | 562 | |||||||||||||||||||||
Reclassification
adjustment for losses included in net income, net of
tax
|
— | — | — | — | — | 902 | 902 | |||||||||||||||||||||
Amortization
related to post- retirement obligations, net of tax
|
— | — | — | — | — | 254 | 254 | |||||||||||||||||||||
Total
comprehensive income
|
4,263 | |||||||||||||||||||||||||||
Cumulative
effect of change in accounting for split-dollar life insurance, net
of tax
|
— | — | — | — | (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 | ||||||||||||
Balance
at June 30, 2009
|
$ | 130 | $ | 130,375 | $ | (53,418 | ) | $ | (13,909 | ) | $ | 176,199 | $ | 721 | $ | 240,098 | ||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
— | — | — | — | 7,412 | — | 7,412 | |||||||||||||||||||||
Unrealized
holding gain on securities available for sale arising
during year, net of tax
|
— | — | — | — | — | 265 | 265 | |||||||||||||||||||||
Reclassification
adjustment for losses included in net income, net of
tax
|
— | — | — | — | — | 58 | 58 | |||||||||||||||||||||
Amortization
related to post- retirement obligations, net of tax
|
— | — | — | — | — | 70 | 70 | |||||||||||||||||||||
Total
comprehensive income
|
7,805 | |||||||||||||||||||||||||||
Cash
dividend declared
|
— | — | — | — | (1,083 | ) | — | (1,083 | ) | |||||||||||||||||||
Purchase
of treasury stock
|
— | — | (1,231 | ) | — | — | — | (1,231 | ) | |||||||||||||||||||
Compensation
cost for stock options and restricted stock
|
— | 1,782 | — | — | — | — | 1,782 | |||||||||||||||||||||
ESOP
shares allocated or committed to be released
|
— | 140 | — | 397 | — | — | 537 | |||||||||||||||||||||
Tax
benefit from stock-based compensation
|
— | 42 | — | — | — | — | 42 | |||||||||||||||||||||
Balance
at December 31, 2009
|
$ | 130 | $ | 132,339 | $ | (54,649 | ) | $ | (13,512 | ) | $ | 182,528 | $ | 1,114 | $ | 247,950 |
Six
months ended
|
||||||||
December
31,
|
||||||||
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ | 7,412 | $ | 2,545 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
ESOP
and stock-based compensation expense
|
2,319 | 2,409 | ||||||
Depreciation
of premises and equipment
|
395 | 321 | ||||||
Amortization
and accretion of premiums and discounts, net
|
1 | 43 | ||||||
Provision
for losses on loans
|
5,050 | 5,375 | ||||||
Amortization
and accretion of deferred loan fees, net
|
(457 | ) | (379 | ) | ||||
Increase
in deferred taxes
|
(1,338 | ) | (3,187 | ) | ||||
Impairment
charge on securities
|
202 | 1,751 | ||||||
(Gain)
loss on sale of securities
|
(12 | ) | 49 | |||||
Gain
on sale of assets
|
(1,043 | ) | - | |||||
Writedown
of real estate owned
|
212 | - | ||||||
Increase
in cash surrender value of bank owned life insurance
|
(588 | ) | (544 | ) | ||||
Income
from real estate held for investment
|
(440 | ) | (504 | ) | ||||
Income
from real estate joint ventures
|
(608 | ) | (543 | ) | ||||
Increase
in accrued interest receivable
|
(819 | ) | (1,211 | ) | ||||
(Increase)
decrease in other assets
|
(6,509 | ) | 1,175 | |||||
Increase
in other liabilities
|
3,596 | 3,552 | ||||||
Net
cash provided by operating activities
|
7,373 | 10,852 | ||||||
Cash
flows from investing activities:
|
||||||||
Net
increase in loans receivable
|
(84,245 | ) | (169,080 | ) | ||||
Purchase
of mortgage loans
|
(3,694 | ) | (32,231 | ) | ||||
Proceeeds
from sales of mortgage loans
|
4,000 | - | ||||||
Purchase
of securities available for sale
|
(251,027 | ) | (25,000 | ) | ||||
Purchase
of mortgage-backed securities available for
sale
|
- | (10,116 | ) | |||||
Redemption
(purchase) of Federal Home Loan Bank of New
York stock
|
68 | (2,603 | ) | |||||
Principal
payments on mortgage-backed securities held to maturity
|
23,075 | 19,590 | ||||||
Principal
payments on mortgage-backed securities available for sale
|
24,042 | 11,640 | ||||||
Proceeds
from calls and maturities of securities available for sale
|
75,000 | 10,000 | ||||||
Proceeds
from sales of mortgage-backed securities held to
maturity
|
9,361 | - | ||||||
Proceeds
from sales of mortgage-backed securities available for
sale
|
6,087 | - | ||||||
Proceeds
from sales of securities available for sale
|
500 | 250 | ||||||
Purchase
of Bank Owned Life Insurance
|
- | (1,120 | ) | |||||
Proceeds
from sale of real estate held for investment
|
1,182 | - | ||||||
Additional
investment in real estate held for investment
|
- | (1,290 | ) | |||||
Distributions
received from real estate held for investment
|
398 | 348 | ||||||
Additional
investment in real estate joint ventures
|
(387 | ) | (30 | ) | ||||
Distributions
received from real estate joint ventures
|
917 | 843 | ||||||
Purchase
of fixed assets
|
(1,348 | ) | (891 | ) | ||||
Net
cash used in investing activities
|
(196,071 | ) | (199,690 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
increase in deposits
|
82,877 | 181,014 | ||||||
Purchase
of treasury stock
|
(1,231 | ) | (38,217 | ) | ||||
Dividends
paid to shareholders
|
(1,521 | ) | - | |||||
Tax
benefit from stock-based compensation
|
42 | - | ||||||
Increase
in advance payments by borrowers for taxes and insurance
|
1,046 | 1,129 | ||||||
Proceeds
from borrowed funds
|
- | 322,225 | ||||||
Repayment
of borrowed funds
|
(1,552 | ) | (264,402 | ) | ||||
Net
cash provided by financing activities
|
79,661 | 201,749 | ||||||
Net
(decrease) increase in cash and cash equivalents
|
(109,037 | ) | 12,911 | |||||
Cash
and cash equivalents at beginning of period
|
135,369 | 8,890 | ||||||
Cash
and cash equivalents at end of period
|
$ | 26,332 | $ | 21,801 | ||||
Supplemental
cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 22,766 | $ | 20,819 | ||||
Income
taxes
|
$ | 2,674 | $ | 4,646 | ||||
Noncash
transfer
|
||||||||
Loans
receivable transferred to Real estate owned
|
$ | 812 | $ | - | ||||
Real
Estate 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,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(in
thousands, except earnings per share data)
|
||||||||||||||||
Net
income
|
$ | 2,929 | $ | 39 | $ | 7,412 | $ | 2,545 | ||||||||
Undistributed
earnings allocated to unvested restricted awards
|
(107 | ) | (1 | ) | (206 | ) | (50 | ) | ||||||||
Net
income available to common shareholders
|
$ | 2,822 | $ | 38 | $ | 7,206 | $ | 2,495 | ||||||||
Weighted
average common shares outstanding - basic
|
35,688 | 36,906 | 35,687 | 37,515 | ||||||||||||
Effect
of dilutive non-vested shares and stock options
outstanding
|
- | - | - | - | ||||||||||||
Weighted
average common shares outstanding - diluted
|
35,688 | 36,906 | 35,687 | 37,515 | ||||||||||||
Earnings
per share-basic and diluted
|
$ | 0.08 | $ | 0.00 | $ | 0.20 | $ | 0.07 |
Number of
Stock Options
|
Weighted
Average
Grant Date
Fair Value
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life (years)
|
|||||||||||||
Outstanding
at June 30, 2009
|
1,848,349 | $ | 3.44 | $ | 15.65 | 9.0 | ||||||||||
Granted
|
- | - | - | - | ||||||||||||
Exercised
|
- | - | - | - | ||||||||||||
Forfeited
|
6,624 | 3.44 | 15.65 | 8.8 | ||||||||||||
Expired
|
- | - | - | - | ||||||||||||
Outstanding
at December 31, 2009
|
1,841,725 | $ | 3.44 | $ | 15.65 | 8.4 | ||||||||||
Exercisable
at December 31, 2009
|
368,345 | $ | 15.65 |
Number of
Shares
Awarded
|
Weighted
Average
Grant Date
Fair Value
|
|||||||
Non-vested
at June 30, 2009
|
635,859 | $ | 15.65 | |||||
Granted
|
- | - | ||||||
Vested
|
- | - | ||||||
Forfeited
|
- | - | ||||||
Non-vested
at December 31, 2009
|
635,859 | $ | 15.65 |
December 31, 2009
|
June 30, 2009
|
|||||||
(In
thousands)
|
||||||||
Residential
|
$ | 260,056 | $ | 265,962 | ||||
Multi-family
|
296,314 | 277,589 | ||||||
Commercial
real estate
|
628,507 | 562,138 | ||||||
Second
mortgage and equity loans
|
51,036 | 54,769 | ||||||
Construction
loans
|
124,898 | 130,831 | ||||||
Other
loans
|
21,613 | 10,993 | ||||||
Total
loans
|
1,382,423 | 1,302,282 | ||||||
Deferred
loan fees, net
|
(3,102 | ) | (2,979 | ) | ||||
Loans,
net of deferred loan fees
|
1,379,321 | 1,299,303 | ||||||
Allowance
for loan losses
|
(22,164 | ) | (20,680 | ) | ||||
Net
loans
|
$ | 1,357,157 | $ | 1,278,623 |
Three months ended
|
Six months ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
(In thousands)
|
(In thousands)
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Balance
at beginning of period
|
$ | 21,165 | $ | 15,407 | $ | 20,680 | $ | 13,532 | ||||||||
Provisions
charged to operations
|
2,500 | 3,500 | 5,050 | 5,375 | ||||||||||||
Recoveries
of loans previously charged off
|
3 | — | 3 | — | ||||||||||||
Loans
charged off
|
(1,504 | ) | — | (3,569 | ) | — | ||||||||||
Balance
at end of period
|
$ | 22,164 | $ | 18,907 | $ | 22,164 | $ | 18,907 |
December 31, 2009
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
unrealized
|
unrealized
|
fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||
FHLMC
|
$ | 15,740 | 396 | 1 | 16,135 | |||||||||||
FNMA
|
24,589 | 712 | — | 25,301 | ||||||||||||
GNMA
|
2,423 | 5 | 2 | 2,426 | ||||||||||||
CMO
|
43,430 | 931 | — | 44,361 | ||||||||||||
$ | 86,182 | 2,044 | 3 | 88,223 |
June 30, 2009
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
unrealized
|
unrealized
|
fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||
FHLMC
|
$ | 18,783 | 287 | 7 | 19,063 | |||||||||||
FNMA
|
31,329 | 616 | 2 | 31,943 | ||||||||||||
GNMA
|
5,161 | 16 | 20 | 5,157 | ||||||||||||
CMO
|
63,544 | 913 | 239 | 64,218 | ||||||||||||
$ | 118,817 | 1,832 | 268 | 120,381 |
December 31, 2009
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||||||||||||
fair value
|
losses
|
fair value
|
losses
|
fair value
|
losses
|
|||||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
FHLMC
|
$ | 859 | 2 | — | — | 859 | 2 | |||||||||||||||||
GNMA
|
1,749 | 1 | — | — | 1,749 | 1 | ||||||||||||||||||
$ | 2,608 | 3 | — | — | 2,608 | 3 |
June 30, 2009
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||||||||||||
fair value
|
losses
|
fair value
|
losses
|
fair value
|
losses
|
|||||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
FHLMC
|
$ | 805 | 2 | 1,012 | 5 | 1,817 | 7 | |||||||||||||||||
FNMA
|
845 | 2 | — | — | 845 | 2 | ||||||||||||||||||
GNMA
|
— | — | 2,009 | 20 | 2,009 | 20 | ||||||||||||||||||
CMO
|
8,214 | 43 | 2,284 | 196 | 10,498 | 239 | ||||||||||||||||||
$ | 9,864 | 47 | 5,305 | 221 | 15,169 | 268 |
December 31, 2009
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
unrealized
|
unrealized
|
market
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities available for sale
|
||||||||||||||||
U.S.
Government and federal agency obligations
|
$ | 310,775 | 1,010 | 591 | 311,194 | |||||||||||
Corporate
bonds
|
2,000 | 83 | — | 2,083 | ||||||||||||
Mutual
funds
|
5,148 | 213 | — | 5,361 | ||||||||||||
Equity
securities
|
1,763 | 54 | 16 | 1,801 | ||||||||||||
$ | 319,686 | 1,360 | 607 | 320,439 | ||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||
FHLMC
|
$ | 22,352 | 993 | 45 | 23,300 | |||||||||||
FNMA
|
20,267 | 978 | — | 21,245 | ||||||||||||
CMO
|
52,566 | 1,402 | — | 53,968 | ||||||||||||
$ | 95,185 | 3,373 | 45 | 98,513 |
June 30, 2009
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
unrealized
|
unrealized
|
fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities
available for sale
|
||||||||||||||||
U.S.
Government and federal agency obligations
|
$ | 134,754 | 532 | 449 | 134,837 | |||||||||||
Corporate
bonds
|
2,000 | 156 | — | 2,156 | ||||||||||||
Mutual
funds
|
5,636 | 40 | — | 5,676 | ||||||||||||
Equity
securities
|
1,965 | 15 | 230 | 1,750 | ||||||||||||
$ | 144,355 | 743 | 679 | 144,419 | ||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||
FHLMC
|
$ | 26,979 | 945 | 49 | 27,875 | |||||||||||
FNMA
|
27,023 | 889 | 1 | 27,911 | ||||||||||||
GNMA
|
2,537 | 21 | 1 | 2,557 | ||||||||||||
CMO
|
68,571 | 1,689 | — | 70,260 | ||||||||||||
$ | 125,110 | 3,544 | 51 | 128,603 |
Estimated
|
||||||||
Amortized
|
fair
|
|||||||
cost
|
value
|
|||||||
(In thousands)
|
||||||||
Due
in one year through five years
|
$ | 297,798 | 298,328 | |||||
Due
after five years through ten years
|
14,977 | 14,949 | ||||||
Mutual
funds and equity securities
|
6,911 | 7,162 | ||||||
$ | 319,686 | 320,439 | ||||||
Mortgage-backed
securities
|
$ | 95,185 | 98,513 |
December 31, 2009
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||||||||||||
market value
|
losses
|
market value
|
losses
|
market value
|
losses
|
|||||||||||||||||||
(In
thousands)
|
||||||||||||||||||||||||
Securities
available for sale:
|
|
|||||||||||||||||||||||
U.S.
Government and federal agency obligations
|
$ | 118,733 | 591 | — | — | 118,733 | 591 | |||||||||||||||||
Equity
securities
|
187 | 16 | — | — | 187 | 16 | ||||||||||||||||||
$ | 118,920 | 607 | — | — | 118,920 | 607 | ||||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
FHLMC
|
$ | 573 | 2 | 2,757 | 43 | 3,330 | 45 | |||||||||||||||||
$ | 573 | 2 | 2,757 | 43 | 3,330 | 45 |
June 30, 2009
|
||||||||||||||||||||||||
Less than 12 months
|
Greater than 12 months
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Estimated
|
unrealized
|
Estimated
|
unrealized
|
Estimated
|
unrealized
|
|||||||||||||||||||
market value
|
losses
|
market value
|
losses
|
market value
|
losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||
U.S.
Government and federal agency obligations
|
$ | 79,202 | 449 | — | — | 79,202 | 449 | |||||||||||||||||
Equity
securities
|
654 | 230 | — | — | 654 | 230 | ||||||||||||||||||
$ | 79,856 | 679 | — | — | 79,856 | 679 | ||||||||||||||||||
Mortgage-backed
securities:
|
||||||||||||||||||||||||
FHLMC
|
$ | 4,501 | 49 | — | — | 4,501 | 49 | |||||||||||||||||
FNMA
|
1,801 | 1 | — | — | 1,801 | 1 | ||||||||||||||||||
GNMA
|
501 | 1 | — | — | 501 | 1 | ||||||||||||||||||
CMO
|
— | — | — | — | — | — | ||||||||||||||||||
$ | 6,803 | 51 | — | — | 6,803 | 51 |
Fair Value as of
December 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
|
$ | 320,439 | $ | 56,871 | $ | 263,568 | $ | - | ||||||||
Mortgage-backed
securities available for sale
|
98,513 | - | 98,513 | - | ||||||||||||
$ | 418,952 | $ | 56,871 | $ | 362,081 | $ | - |
Fair Value as of
|
Quoted Prices
in Active
Markets for
Identical
Assets
|
Significant
Other
Observable
Inputs
|
Unobservable
Inputs
|
|||||||||||||
June 30, 2009
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Securities
available for sale
|
$ | 144,419 | $ | 27,102 | $ | 117,318 | $ | - | ||||||||
Mortgage-backed
securities available for sale
|
128,604 | 1,141 | 127,463 | - | ||||||||||||
$ | 273,023 | $ | 28,243 | $ | 244,781 | $ | - |
December 31, 2009
|
June 30, 2009
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
value
|
value
|
value
|
value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$ | 26,332 | 26,332 | 135,369 | 135,369 | |||||||||||
Securities
available for sale
|
320,439 | 320,439 | 144,419 | 144,419 | ||||||||||||
Mortgage-backed
securities
|
||||||||||||||||
held
to maturity
|
86,182 | 88,223 | 118,817 | 120,381 | ||||||||||||
Mortgage-backed
securities
|
||||||||||||||||
available
for sale
|
98,513 | 98,513 | 128,603 | 128,603 | ||||||||||||
Federal
Home Loan Bank of
|
||||||||||||||||
New
York stock
|
25,481 | 25,481 | 25,549 | 25,549 | ||||||||||||
Loans
|
1,357,157 | 1,374,712 | 1,278,623 | 1,292,394 | ||||||||||||
Financial
liabilities – deposits
|
1,210,507 | 1,212,923 | 1,127,630 | 1,106,212 | ||||||||||||
Financial
liabilities – borrowings
|
507,439 | 543,451 | 508,991 | 547,202 |
December 31, 2009
|
June 30, 2009
|
|||||||
(In thousands)
|
||||||||
Demand
deposit accounts
|
$ | 106,968 | $ | 88,759 | ||||
Money
market accounts
|
271,583 | 199,965 | ||||||
Savings
accounts
|
146,442 | 147,669 | ||||||
Time
deposits
|
685,514 | 691,237 | ||||||
Total
deposits
|
$ | 1,210,507 | $ | 1,127,630 |
Delinquency
Totals
|
||||||||||||||||||||
12/31/2009
|
9/30/2009
|
6/30/2009
|
3/31/2009
|
12/31/2008
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||||||
30
- 59 days past due
|
$ | 9,613 | $ | 14,318 | $ | 6,727 | $ | 4,897 | $ | 4,979 | ||||||||||
60
- 89 days past due
|
1,974 | 1,049 | 17,825 | 2,130 | 5,942 | |||||||||||||||
nonaccrual
|
51,907 | 52,557 | 52,465 | 52,260 | 44,067 | |||||||||||||||
Total
|
$ | 63,494 | $ | 67,924 | $ | 77,017 | $ | 59,287 | $ | 54,988 |
Average Balance Sheet and Yield/Rate Information
|
||||||||||||||||||||||||
For the Three Months Ended (unaudited)
|
||||||||||||||||||||||||
December 31, 2009
|
December 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)
|
$ | 1,351,360 | $ | 20,775 | 6.15 | % | $ | 1,177,756 | $ | 17,956 | 6.10 | % | ||||||||||||
Securities held to
maturity (2)
|
25,498 | 360 | 5.65 | % | 25,264 | 211 | 3.34 | % | ||||||||||||||||
Securities
available for sale
|
296,328 | 2,136 | 2.88 | % | 35,884 | 404 | 4.50 | % | ||||||||||||||||
Mortgage
backed securities held to maturity
|
97,215 | 887 | 3.65 | % | 148,392 | 1,475 | 3.98 | % | ||||||||||||||||
Mortgage
backed securities available for sale
|
111,001 | 1,281 | 4.62 | % | 147,768 | 1,816 | 4.92 | % | ||||||||||||||||
Federal
funds sold and short term investments
|
27,669 | 28 | 0.40 | % | 284 | 0 | 0.00 | % | ||||||||||||||||
Total
interest-earning assets
|
1,909,071 | 25,467 | 5.34 | % | 1,535,348 | 21,862 | 5.70 | % | ||||||||||||||||
Non-interest-earning
assets
|
88,733 | 79,430 | ||||||||||||||||||||||
Total
assets
|
$ | 1,997,804 | $ | 1,614,778 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
145,908 | 325 | 0.89 | % | 142,698 | 522 | 1.46 | % | ||||||||||||||||
Money
market
|
253,462 | 993 | 1.57 | % | 78,169 | 602 | 3.08 | % | ||||||||||||||||
NOW
accounts
|
105,125 | 206 | 0.78 | % | 76,488 | 161 | 0.84 | % | ||||||||||||||||
Time
deposits
|
697,361 | 4,286 | 2.46 | % | 515,954 | 4,792 | 3.72 | % | ||||||||||||||||
Total
deposits
|
1,201,856 | 5,810 | 1.93 | % | 813,309 | 6,077 | 2.99 | % | ||||||||||||||||
Borrowings
|
507,818 | 5,247 | 4.13 | % | 516,039 | 5,092 | 3.95 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
1,709,674 | 11,057 | 2.59 | % | 1,329,348 | 11,169 | 3.36 | % | ||||||||||||||||
Non-interest-bearing
liabilities
|
41,433 | 31,969 | ||||||||||||||||||||||
Total
liabilities
|
1,751,107 | 1,361,317 | ||||||||||||||||||||||
Stockholders'
equity
|
246,697 | 253,461 | ||||||||||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 1,997,804 | $ | 1,614,778 | ||||||||||||||||||||
Net
interest income
|
$ | 14,410 | $ | 10,693 | ||||||||||||||||||||
Net interest rate
spread (3)
|
2.75 | % | 2.34 | % | ||||||||||||||||||||
Net interest-earning
assets (4)
|
$ | 199,397 | $ | 206,000 | ||||||||||||||||||||
Net interest margin
(5)
|
3.02 | % | 2.79 | % | ||||||||||||||||||||
Average
of interest-earning assets to interest-bearing liabilities
|
111.66 | % | 115.50 | % |
|
(1)
|
Includes
nonaccrual loans.
|
|
(2)
|
Includes
Federal Home Loan Bank Stock
|
|
(3)
|
Net
interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
|
|
(4)
|
Net
interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
|
|
(5)
|
Net
interest margin represents net interest income divided by average total
interest-earning assets.
|
Average Balance Sheet and Yield/Rate Information
|
||||||||||||||||||||||||
For the Six Months Ended (unaudited)
|
||||||||||||||||||||||||
December 31, 2009
|
December 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)
|
$ | 1,336,861 | $ | 42,065 | 6.29 | % | $ | 1,123,438 | $ | 34,645 | 6.17 | % | ||||||||||||
Securities
held to maturity (2)
|
25,513 | 717 | 5.62 | % | 24,646 | 535 | 4.34 | % | ||||||||||||||||
Securities
available for sale
|
260,372 | 3,738 | 2.87 | % | 29,035 | 633 | 4.36 | % | ||||||||||||||||
Mortgage
backed securities held to maturity
|
103,686 | 1,918 | 3.70 | % | 153,587 | 3,032 | 3.95 | % | ||||||||||||||||
Mortgage
backed securities available for sale
|
117,249 | 2,718 | 4.64 | % | 149,065 | 3,673 | 4.93 | % | ||||||||||||||||
Federal
funds sold and short term investments
|
48,471 | 90 | 0.37 | % | 258 | 1 | 0.78 | % | ||||||||||||||||
Total
interest-earning assets
|
1,892,152 | 51,246 | 5.42 | % | 1,480,029 | 42,519 | 5.75 | % | ||||||||||||||||
Non-interest-earning
assets
|
86,387 | 77,036 | ||||||||||||||||||||||
Total
assets
|
$ | 1,978,539 | $ | 1,557,065 | ||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Savings
deposits
|
146,313 | 675 | 0.92 | % | 144,709 | 1,069 | 1.48 | % | ||||||||||||||||
Money
market
|
237,403 | 2,008 | 1.69 | % | 70,882 | 1,076 | 3.04 | % | ||||||||||||||||
NOW
accounts
|
101,795 | 404 | 0.79 | % | 75,084 | 323 | 0.86 | % | ||||||||||||||||
Time
deposits
|
702,046 | 9,036 | 2.57 | % | 470,220 | 8,648 | 3.68 | % | ||||||||||||||||
Total
deposits
|
1,187,557 | 12,123 | 2.04 | % | 760,895 | 11,116 | 2.92 | % | ||||||||||||||||
Borrowings
|
508,145 | 10,494 | 4.13 | % | 502,393 | 9,940 | 3.96 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
1,695,702 | 22,617 | 2.67 | % | 1,263,288 | 21,056 | 3.33 | % | ||||||||||||||||
Non-interest-bearing
liabilities
|
39,125 | 32,051 | ||||||||||||||||||||||
Total
liabilities
|
1,734,827 | 1,295,339 | ||||||||||||||||||||||
Stockholders'
equity
|
243,712 | 261,726 | ||||||||||||||||||||||
Total
liabilities and stockholder's equity
|
$ | 1,978,539 | $ | 1,557,065 | ||||||||||||||||||||
Net
interest income
|
$ | 28,629 | $ | 21,463 | ||||||||||||||||||||
Net
interest rate spread (3)
|
2.75 | % | 2.42 | % | ||||||||||||||||||||
Net
interest-earning assets (4)
|
$ | 196,450 | $ | 216,741 | ||||||||||||||||||||
Net
interest margin (5)
|
3.03 | % | 2.90 | % | ||||||||||||||||||||
Average
of interest-earning assets to interest-bearing liabilities
|
111.59 | % | 117.16 | % |
|
(1)
|
Includes
nonaccrual loans.
|
|
(2)
|
Includes
Federal Home Loan Bank Stock
|
|
(3)
|
Net
interest rate spread represents the difference between the yield on
average interest-earning assets and the cost of average interest-bearing
liabilities.
|
|
(4)
|
Net
interest-earning assets represents total interest-earning assets less
total interest-bearing liabilities.
|
|
(5)
|
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)
|
$ | 264,865 | 18.4 | % | $ | 115,053 | 8.0 | % | ||||||||
Tier
I capital (to risk-weighted assets)
|
246,836 | 17.2 | 57,527 | 4.0 | ||||||||||||
Tier
I capital (to average assets)
|
246,836 | 12.4 | 79,912 | 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.
|
NPV
as a Percentage of Present
|
|||||||||||||||||||||
Value of Assets (3)
|
|||||||||||||||||||||
Change
in Interest
|
Estimated
Increase (Decrease) in
|
Increase
|
|||||||||||||||||||
Rates
(basis
|
Estimated
|
NPV
|
(Decrease)
|
||||||||||||||||||
points) (1)
|
NPV (2)
|
Amount
|
Percent
|
NPV Ratio (4)
|
(basis points)
|
||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||||
+200
|
203,351 | (53,593 | ) | (20.86 | )% | 10.59 | % | (209 | ) | ||||||||||||
0
|
256,944 | — | — | 12.68 | — | ||||||||||||||||
-100
|
278,886 | 21,942 | 8.54 | 13.42 | 74 |
|
(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)
|
|||||||||
October
|
4,100
|
12.93
|
4,100
|
613,491
|
|||||||||
November
|
17,200
|
12.77
|
17,200
|
596,291
|
|||||||||
December
|
-
|
-
|
-
|
596,291
|
|||||||||
21,300
|
$ |
12.80
|
21,300
|
(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 596,291 shares yet to be purchased as of December
31, 2009.
|
Name
|
For
|
Withheld
|
||||||
Michael
A. DeBernardi
|
34,866,494 | 919,196 | ||||||
Robert
S. Hekemian, Jr.
|
34,646,521 | 1,139,169 |
For
|
Against
|
Abstain
|
||||
35,664,444
|
118,856
|
2,390
|
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
Bank 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**, ***
|
|
14
|
Code
of Ethics**
|
|
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).
|
**
|
Available
on our website www.oritani.com
|
***
|
Management
contract, compensatory plan or
arrangement.
|
ORITANI
FINANCIAL CORP.
|
||
Date: February 8, 2010 |
/s/ Kevin J. Lynch
|
|
Kevin
J. Lynch
|
||
President
and Chief Executive Officer
|
||
Date: February 8, 2010 |
/s/ John M. Fields, Jr.
|
|
John
M. Fields, Jr.
|
||
Executive
Vice President and Chief Financial
Officer
|