|
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
|
|
|
Delaware
|
|
30-0628335
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
|
Large accelerated filer
|
|
|
|
Accelerated filer
|
|
|
Non-accelerated filer
|
|
(Do not check if a smaller reporting company)
|
|
Smaller Reporting company
|
|
|
|
|
|
|
Part I. Financial Information
|
Page
|
|
|
|
Item 1.
|
3
|
|
|
|
|
|
Consolidated Balance Sheets as of December 31, 2016 (unaudited) and June 30, 2016
|
3
|
|
|
|
|
Consolidated Statements of Income for the Three and Six Months Ended December 31, 2016 and 2015 (unaudited)
|
4
|
|
|
|
|
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended December 31, 2016 and 2015 (unaudited)
|
5
|
|
|
|
Consolidated Statements of Stockholders' Equity for the Six Months Ended December 31, 2016 and 2015 (unaudited)
|
6
|
|
|
|
|
Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2016 and 2015 (unaudited)
|
8
|
|
|
|
|
|
9
|
|
|
|
|
Item 2.
|
36
|
|
|
|
|
Item 3.
|
50
|
|
|
|
|
Item 4.
|
52
|
|
|
|
|
|
|
|
|
|
|
Item 1.
|
52
|
|
|
|
|
Item 1A.
|
52
|
|
|
|
|
Item 2.
|
52
|
|
|
|
|
Item 3.
|
52
|
|
|
|
|
Item 4.
|
52
|
|
|
|
|
Item 5.
|
52
|
|
|
|
|
Item 6.
|
53
|
|
|
|
|
|
54
|
|
December 31, 2016
|
June 30, 2016
|
||||||
|
(unaudited)
|
(audited)
|
||||||
Assets
|
||||||||
Cash on hand and in banks
|
$
|
29,533
|
$
|
16,243
|
||||
Federal funds sold and short term investments
|
2,849
|
328
|
||||||
Cash and cash equivalents
|
32,382
|
16,571
|
||||||
Loans, net
|
3,383,198
|
3,131,957
|
||||||
Securities available for sale, at fair value
|
180,194
|
141,850
|
||||||
Securities held to maturity, fair value of $198,685 and $170,706, respectively.
|
201,813
|
168,107
|
||||||
Bank Owned Life Insurance (at cash surrender value)
|
94,672
|
93,327
|
||||||
Federal Home Loan Bank of New York stock ("FHLB"), at cost
|
38,878
|
38,003
|
||||||
Accrued interest receivable
|
10,247
|
9,943
|
||||||
Investments in real estate joint ventures, net
|
4,364
|
4,307
|
||||||
Real estate owned
|
266
|
487
|
||||||
Office properties and equipment, net
|
13,939
|
14,338
|
||||||
Deferred tax assets, net
|
40,328
|
47,360
|
||||||
Other assets
|
11,888
|
3,088
|
||||||
Total Assets
|
$
|
4,012,169
|
$
|
3,669,338
|
||||
Liabilities
|
||||||||
Deposits
|
$
|
2,591,074
|
$
|
2,260,003
|
||||
Borrowings
|
800,635
|
781,623
|
||||||
Advance payments by borrowers for taxes and insurance
|
20,372
|
21,415
|
||||||
Other liabilities
|
61,624
|
71,097
|
||||||
Total Liabilities
|
3,473,705
|
3,134,138
|
||||||
Stockholders' Equity
|
||||||||
Common stock, $0.01 par value; 150,000,000 shares authorized; 56,245,065 shares issued;
45,860,066 shares outstanding at December 31, 2016 and 45,247,420 shares outstanding at June 30, 2016.
|
562
|
562
|
||||||
Additional paid-in capital
|
511,487
|
513,177
|
||||||
Non-vested restricted stock awards
|
(483
|
)
|
(4,242
|
)
|
||||
Treasury stock, at cost; 10,384,999 shares at December 31, 2016 and 10,997,645 shares at June 30, 2016.
|
(138,280
|
)
|
(146,173
|
)
|
||||
Unallocated common stock held by the employee stock ownership plan
|
(19,099
|
)
|
(20,481
|
)
|
||||
Retained earnings
|
186,485
|
202,429
|
||||||
Accumulated other comprehensive loss, net of tax
|
(2,208
|
)
|
(10,072
|
)
|
||||
Total Stockholders' Equity
|
538,464
|
535,200
|
||||||
Total Liabilities and Stockholders' Equity
|
$
|
4,012,169
|
$
|
3,669,338
|
|
Three months ended December 31,
|
Six months ended December 31,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
(unaudited)
|
|||||||||||||||
Interest income:
|
||||||||||||||||
Interest on loans
|
$
|
33,135
|
$
|
31,148
|
$
|
65,108
|
$
|
61,937
|
||||||||
Interest on securities available for sale
|
826
|
1,154
|
1,652
|
2,357
|
||||||||||||
Interest on securities held to maturity
|
871
|
663
|
1,674
|
1,234
|
||||||||||||
Dividends on FHLB stock
|
417
|
391
|
874
|
792
|
||||||||||||
Interest on federal funds sold and short term investments
|
2
|
1
|
3
|
2
|
||||||||||||
Total interest income
|
35,251
|
33,357
|
69,311
|
66,322
|
||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
5,964
|
4,456
|
11,703
|
8,118
|
||||||||||||
Borrowings
|
3,058
|
3,607
|
6,079
|
8,761
|
||||||||||||
Total interest expense
|
9,022
|
8,063
|
17,782
|
16,879
|
||||||||||||
Net interest income before provision for loan losses
|
26,229
|
25,294
|
51,529
|
49,443
|
||||||||||||
Provision for loan losses
|
—
|
—
|
—
|
—
|
||||||||||||
Net interest income after provision for loan losses
|
26,229
|
25,294
|
51,529
|
49,443
|
||||||||||||
Other income:
|
||||||||||||||||
Service charges
|
176
|
208
|
358
|
466
|
||||||||||||
Real estate operations, net
|
—
|
36
|
—
|
271
|
||||||||||||
Income from investments in real estate joint ventures
|
260
|
311
|
576
|
718
|
||||||||||||
Bank-owned life insurance
|
666
|
678
|
1,345
|
1,374
|
||||||||||||
Net gain on sale of assets
|
—
|
25,554
|
—
|
29,866
|
||||||||||||
Net gain on sale of securities
|
—
|
604
|
—
|
604
|
||||||||||||
Other income
|
81
|
91
|
162
|
168
|
||||||||||||
Total other income
|
1,183
|
27,482
|
2,441
|
33,467
|
||||||||||||
Other expenses:
|
||||||||||||||||
Compensation, payroll taxes and fringe benefits
|
8,207
|
10,056
|
15,565
|
17,759
|
||||||||||||
Advertising
|
125
|
90
|
215
|
180
|
||||||||||||
Office occupancy and equipment expense
|
781
|
689
|
1,581
|
1,407
|
||||||||||||
Data processing service fees
|
559
|
496
|
1,103
|
1,014
|
||||||||||||
Federal insurance premiums
|
300
|
399
|
750
|
798
|
||||||||||||
Net expense from real estate operations
|
69
|
11
|
124
|
341
|
||||||||||||
FHLBNY prepayment fees
|
—
|
13,873
|
—
|
13,873
|
||||||||||||
Other expenses
|
1,017
|
1,315
|
1,988
|
2,294
|
||||||||||||
Total operating expenses
|
11,058
|
26,929
|
21,326
|
37,666
|
||||||||||||
Income before income tax expense
|
16,354
|
25,847
|
32,644
|
45,244
|
||||||||||||
Income tax expense
|
4,978
|
9,470
|
10,657
|
16,252
|
||||||||||||
Net income
|
$
|
11,376
|
$
|
16,377
|
$
|
21,987
|
$
|
28,992
|
||||||||
Earnings per basic common share
|
$
|
0.26
|
$
|
0.39
|
$
|
0.51
|
$
|
0.70
|
||||||||
Earnings per diluted common share
|
$
|
0.26
|
$
|
0.38
|
$
|
0.50
|
$
|
0.68
|
|
Three months ended December 31,
|
Six months ended December 31,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
(unaudited)
|
|||||||||||||||
Net of tax:
|
||||||||||||||||
Net income
|
$
|
11,376
|
$
|
16,377
|
$
|
21,987
|
$
|
28,992
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized holding loss on securities available for sale
|
(1,062
|
)
|
(1,650
|
)
|
(1,454
|
)
|
(1,204
|
)
|
||||||||
Reclassification adjustment for security gains included in net income
|
—
|
(343
|
)
|
—
|
(343
|
)
|
||||||||||
Amortization related to post-retirement obligations
|
57
|
31
|
130
|
64
|
||||||||||||
Net change in unrealized gain (loss) on interest rate swaps
|
7,889
|
1,468
|
9,188
|
(896
|
)
|
|||||||||||
Total other comprehensive income (loss)
|
6,884
|
(494
|
)
|
7,864
|
(2,379
|
)
|
||||||||||
Total comprehensive income
|
$
|
18,260
|
$
|
15,883
|
$
|
29,851
|
$
|
26,613
|
|
Shares Outstanding
|
Common stock
|
Additional paid-in capital
|
Non-vested restricted stock awards
|
Treasury stock
|
Unallocated common stock held by ESOP
|
Retained income
|
Accumulated other comprehensive income (loss), net of tax
|
Total stockholders' equity
|
|||||||||||||||||||||||||||
Balance at June 30, 2015
|
44,012,239
|
$
|
562
|
$
|
508,999
|
$
|
(8,088
|
)
|
$
|
(162,344
|
)
|
$
|
(22,803
|
)
|
$
|
203,192
|
$
|
(1,848
|
)
|
$
|
517,670
|
|||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
28,992
|
—
|
28,992
|
|||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(2,379
|
)
|
(2,379
|
)
|
|||||||||||||||||||||||||
Cash dividends declared
|
—
|
—
|
—
|
—
|
—
|
—
|
(35,229
|
)
|
—
|
(35,229
|
)
|
|||||||||||||||||||||||||
Purchase of treasury stock
|
(100,978
|
)
|
—
|
—
|
—
|
(1,593
|
)
|
—
|
—
|
—
|
(1,593
|
)
|
||||||||||||||||||||||||
Issuance of restricted stock awards
|
10,000
|
—
|
—
|
(133
|
)
|
133
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Compensation cost for stock options and restricted stock
|
—
|
—
|
2,996
|
—
|
—
|
—
|
—
|
—
|
2,996
|
|||||||||||||||||||||||||||
ESOP shares allocated or committed to be released
|
—
|
—
|
1,430
|
—
|
—
|
1,645
|
—
|
—
|
3,075
|
|||||||||||||||||||||||||||
Exercise of stock options
|
482,436
|
—
|
—
|
—
|
6,411
|
—
|
(1,106
|
)
|
—
|
5,305
|
||||||||||||||||||||||||||
Vesting of restricted stock awards
|
—
|
—
|
(3,887
|
)
|
3,906
|
—
|
—
|
(19
|
)
|
—
|
—
|
|||||||||||||||||||||||||
Forfeiture of restricted stock awards
|
(6,000
|
)
|
—
|
—
|
73
|
(73
|
)
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||
Cumulative effect of change in accounting principle-adoption of ASU 2016-09
|
—
|
—
|
—
|
—
|
—
|
—
|
(33
|
)
|
—
|
(33
|
)
|
|||||||||||||||||||||||||
Balance at December 31, 2015
|
44,397,697
|
$
|
562
|
$
|
509,538
|
$
|
(4,242
|
)
|
$
|
(157,466
|
)
|
$
|
(21,158
|
)
|
$
|
195,797
|
$
|
(4,227
|
)
|
$
|
518,804
|
|
Shares Outstanding
|
Common stock
|
Additional paid-in capital
|
Non-vested restricted stock awards
|
Treasury stock
|
Unallocated common stock held by ESOP
|
Retained income
|
Accumulated other comprehensive income (loss), net of tax
|
Total stockholders' equity
|
|||||||||||||||||||||||||||
Balance at June 30, 2016
|
45,247,420
|
$
|
562
|
$
|
513,177
|
$
|
(4,242
|
)
|
$
|
(146,173
|
)
|
$
|
(20,481
|
)
|
$
|
202,429
|
$
|
(10,072
|
)
|
$
|
535,200
|
|||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
—
|
21,987
|
—
|
21,987
|
|||||||||||||||||||||||||||
Other comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
7,864
|
7,864
|
|||||||||||||||||||||||||||
Cash dividends declared
|
—
|
—
|
—
|
—
|
—
|
—
|
(36,598
|
)
|
—
|
(36,598
|
)
|
|||||||||||||||||||||||||
Purchase of treasury stock
|
(98,655
|
)
|
—
|
—
|
—
|
(1,574
|
)
|
—
|
—
|
—
|
(1,574
|
)
|
||||||||||||||||||||||||
Issuance of restricted stock awards
|
10,000
|
—
|
—
|
(133
|
)
|
133
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Compensation cost for stock options and restricted stock
|
—
|
—
|
849
|
—
|
—
|
—
|
—
|
—
|
849
|
|||||||||||||||||||||||||||
ESOP shares allocated or committed to be released
|
—
|
—
|
1,340
|
—
|
—
|
1,382
|
—
|
—
|
2,722
|
|||||||||||||||||||||||||||
Exercise of stock options
|
701,301
|
—
|
—
|
—
|
9,334
|
—
|
(1,320
|
)
|
—
|
8,014
|
||||||||||||||||||||||||||
Vesting of restricted stock awards
|
—
|
—
|
(3,879
|
)
|
3,892
|
—
|
—
|
(13
|
)
|
—
|
—
|
|||||||||||||||||||||||||
Balance at December 31, 2016
|
45,860,066
|
$
|
562
|
$
|
511,487
|
$
|
(483
|
)
|
$
|
(138,280
|
)
|
$
|
(19,099
|
)
|
$
|
186,485
|
$
|
(2,208
|
)
|
$
|
538,464
|
|
Six months ended December 31,
|
|||||||
|
2016
|
2015
|
||||||
|
(unaudited)
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
21,987
|
$
|
28,992
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
ESOP and stock-based compensation expense
|
3,571
|
6,071
|
||||||
Tax benefit from stock-based compensation
|
1,286
|
959
|
||||||
Depreciation of premises and equipment
|
454
|
447
|
||||||
Net amortization and accretion of premiums and discounts on securities
|
625
|
594
|
||||||
Amortization and accretion of deferred loan fees, net
|
(1,129
|
)
|
(1,836
|
)
|
||||
Decrease (increase) in deferred taxes
|
1,082
|
(1,842
|
)
|
|||||
Gain on sale of investment securities
|
—
|
(604
|
)
|
|||||
Gain on sale of real estate joint ventures and real estate investments
|
—
|
(29,538
|
)
|
|||||
Gain on sale of real estate owned
|
—
|
(328
|
)
|
|||||
Writedown of real estate owned
|
89
|
250
|
||||||
Proceeds from sale of real estate owned
|
132
|
3,967
|
||||||
Increase in cash surrender value of bank owned life insurance
|
(1,345
|
)
|
(1,374
|
)
|
||||
Increase in accrued interest receivable
|
(304
|
)
|
(451
|
)
|
||||
Decrease in other assets
|
7,554
|
3,872
|
||||||
(Decrease) increase in other liabilities
|
(9,185
|
)
|
5,884
|
|||||
Net cash provided by operating activities
|
24,817
|
15,063
|
||||||
Cash flows from investing activities:
|
||||||||
Net increase in loans receivable
|
(184,187
|
)
|
(116,396
|
)
|
||||
Purchase of loans
|
(65,925
|
)
|
(37,341
|
)
|
||||
Purchase of securities available for sale
|
(66,222
|
)
|
(42,213
|
)
|
||||
Purchase of securities held to maturity
|
(49,649
|
)
|
(58,960
|
)
|
||||
Proceeds from payments, calls and maturities of securities available for sale
|
25,004
|
35,193
|
||||||
Proceeds from payments, calls and maturities of securities held to maturity
|
15,637
|
9,194
|
||||||
Proceeds from sales of securities available for sale
|
—
|
38,985
|
||||||
Net (increase) decrease in Federal Home Loan Bank of New York stock
|
(875
|
)
|
137
|
|||||
Proceeds from sales of real estate joint ventures and real estate investments
|
—
|
29,638
|
||||||
Net increase in real estate held for investment
|
—
|
(1
|
)
|
|||||
Net (increase) decrease in real estate joint ventures
|
(57
|
)
|
389
|
|||||
Purchase of fixed assets
|
(40
|
)
|
(583
|
)
|
||||
Net cash used in investing activities
|
(326,314
|
)
|
(141,958
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
331,071
|
157,739
|
||||||
Purchase of treasury stock
|
(1,574
|
)
|
(1,593
|
)
|
||||
Dividends paid to shareholders
|
(36,598
|
)
|
(35,229
|
)
|
||||
Exercise of stock options
|
8,014
|
5,305
|
||||||
Decrease in advance payments by borrowers for taxes and insurance
|
(1,043
|
)
|
(439
|
)
|
||||
Proceeds from borrowed funds
|
19,500
|
182,435
|
||||||
Repayment of borrowed funds
|
(488
|
)
|
(185,000
|
)
|
||||
Payment of employee taxes withheld from shared-based awards
|
(1,574
|
)
|
(1,593
|
)
|
||||
Net cash provided by financing activities
|
317,308
|
121,625
|
||||||
Net increase (decrease) in cash and cash equivalents
|
15,811
|
(5,270
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
16,571
|
15,129
|
||||||
Cash and cash equivalents at end of period
|
$
|
32,382
|
$
|
9,859
|
||||
Supplemental cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
17,746
|
$
|
17,409
|
||||
Income taxes
|
$
|
15,787
|
$
|
12,383
|
||||
Noncash transfer
|
||||||||
Loans receivable transferred to real estate owned
|
$
|
—
|
$
|
317
|
|
Three months ended December 31,
|
Six months ended December 31,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
(In thousands, except per share data)
|
|||||||||||||||
Net income
|
$
|
11,376
|
$
|
16,377
|
$
|
21,987
|
$
|
28,992
|
||||||||
Weighted average common shares outstanding—basic
|
43,024
|
41,504
|
42,899
|
41,380
|
||||||||||||
Effect of dilutive stock options outstanding
|
1,294
|
1,545
|
1,216
|
1,440
|
||||||||||||
Weighted average common shares outstanding—diluted
|
44,318
|
43,049
|
44,115
|
42,820
|
||||||||||||
Earnings per share-basic
|
$
|
0.26
|
$
|
0.39
|
$
|
0.51
|
$
|
0.70
|
||||||||
Earnings per share-diluted
|
$
|
0.26
|
$
|
0.38
|
$
|
0.50
|
$
|
0.68
|
Six months ended December 31,
|
|||||
|
2016
|
2015
|
|||
Option shares granted
|
20,000
|
20,000
|
|||
Expected dividend yield
|
5.35%
|
6.75%
|
|||
Expected volatility
|
20.81%
|
26.10%
|
|||
Risk-free interest rate
|
1.39%
|
2.03%
|
|||
Expected option life
|
6.5
|
|
6.5
|
|
Number of Stock Options
|
Weighted Average Grant Date Fair Value
|
Weighted Average Exercise Price
|
Weighted Average Remaining Contractual Life (years)
|
||||||||||||
Outstanding at June 30, 2016
|
4,568,005
|
$
|
2.59
|
$
|
11.65
|
5.3
|
||||||||||
Granted
|
20,000
|
1.34
|
15.65
|
10.0
|
||||||||||||
Exercised
|
(701,301
|
)
|
2.57
|
11.43
|
3.6
|
|||||||||||
Forfeited
|
—
|
—
|
—
|
—
|
||||||||||||
Outstanding at December 31, 2016
|
3,886,704
|
$
|
2.59
|
$
|
11.71
|
3.9
|
||||||||||
Exercisable at December 31, 2016
|
3,808,831
|
$
|
2.60
|
$
|
11.63
|
3.9
|
|
Number of Shares Awarded
|
Weighted Average Grant Date Fair Value
|
||||||
Non-vested at June 30, 2016
|
347,487
|
$
|
12.37
|
|||||
Granted
|
10,000
|
15.65
|
||||||
Vested
|
(318,553
|
)
|
12.08
|
|||||
Forfeited
|
—
|
—
|
||||||
Non-vested at December 31, 2016
|
38,934
|
$
|
15.46
|
|
Retirement Plan
|
BEP Plan
|
Medical Plan
|
|||||||||||||||||||||
|
Three months ended December 31,
|
|||||||||||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Service cost
|
$
|
38
|
$
|
43
|
$
|
—
|
$
|
—
|
$
|
14
|
$
|
19
|
||||||||||||
Interest cost
|
45
|
57
|
10
|
12
|
59
|
59
|
||||||||||||||||||
Amortization of unrecognized:
|
||||||||||||||||||||||||
Net loss
|
—
|
7
|
13
|
10
|
87
|
39
|
||||||||||||||||||
Total
|
$
|
83
|
$
|
107
|
$
|
23
|
$
|
22
|
$
|
160
|
$
|
117
|
|
Six months ended December 31,
|
|||||||||||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Service cost
|
$
|
76
|
$
|
87
|
$
|
—
|
$
|
—
|
$
|
29
|
$
|
39
|
||||||||||||
Interest cost
|
91
|
113
|
20
|
24
|
117
|
118
|
||||||||||||||||||
Amortization of unrecognized:
|
||||||||||||||||||||||||
Net loss
|
—
|
15
|
26
|
20
|
174
|
77
|
||||||||||||||||||
Total
|
$
|
167
|
$
|
215
|
$
|
46
|
$
|
44
|
$
|
320
|
$
|
234
|
|
December 31, 2016
|
June 30, 2016
|
||||||
|
(In thousands)
|
|||||||
Residential
|
$
|
238,861
|
$
|
223,701
|
||||
Residential commercial real estate
|
1,808,344
|
1,596,876
|
||||||
Credit/grocery retail commercial real estate
|
519,780
|
457,058
|
||||||
Other commercial real estate
|
852,076
|
887,443
|
||||||
Construction and land loans
|
2,361
|
4,810
|
||||||
Total loans
|
3,421,422
|
3,169,888
|
||||||
Less:
|
||||||||
Deferred loan fees, net
|
8,347
|
7,980
|
||||||
Allowance for loan losses
|
29,877
|
29,951
|
||||||
Loans, net
|
$
|
3,383,198
|
$
|
3,131,957
|
|
Three months ended December 31,
|
Six months ended December 31,
|
||||||||||||||
|
(In thousands)
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Balance at beginning of period
|
$
|
29,878
|
$
|
30,634
|
$
|
29,951
|
$
|
30,889
|
||||||||
Provisions for loan losses
|
—
|
—
|
—
|
—
|
||||||||||||
Recoveries of loans previously charged off
|
—
|
1
|
2
|
1
|
||||||||||||
Loans charged off
|
(1
|
)
|
—
|
(76
|
)
|
(255
|
)
|
|||||||||
Balance at end of period
|
$
|
29,877
|
$
|
30,635
|
$
|
29,877
|
$
|
30,635
|
|
Three months ended December 31, 2016
|
|||||||||||||||||||||||
|
Residential
|
Residential commercial real estate
|
Credit/grocery retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$
|
1,794
|
$
|
13,610
|
$
|
3,472
|
$
|
10,843
|
$
|
159
|
$
|
29,878
|
||||||||||||
Charge-offs
|
—
|
—
|
—
|
(1
|
)
|
—
|
(1
|
)
|
||||||||||||||||
Recoveries
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Provisions
|
(168
|
)
|
814
|
(145
|
)
|
(476
|
)
|
(25
|
)
|
—
|
||||||||||||||
Ending balance
|
$
|
1,626
|
$
|
14,424
|
$
|
3,327
|
$
|
10,366
|
$
|
134
|
$
|
29,877
|
|
Six months ended December 31, 2016
|
|||||||||||||||||||||||
|
Residential
|
Residential commercial real estate
|
Credit/grocery retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$
|
1,300
|
$
|
12,837
|
$
|
3,646
|
$
|
11,850
|
$
|
318
|
$
|
29,951
|
||||||||||||
Charge-offs
|
(75
|
)
|
—
|
—
|
(1
|
)
|
—
|
(76
|
)
|
|||||||||||||||
Recoveries
|
—
|
—
|
—
|
2
|
—
|
2
|
||||||||||||||||||
Provisions
|
401
|
1,587
|
(319
|
)
|
(1,485
|
)
|
(184
|
)
|
—
|
|||||||||||||||
Ending balance
|
$
|
1,626
|
$
|
14,424
|
$
|
3,327
|
$
|
10,366
|
$
|
134
|
$
|
29,877
|
|
Three months ended December 31, 2015
|
|||||||||||||||||||||||
|
Residential
|
Residential commercial real estate
|
Credit/grocery retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$
|
1,680
|
$
|
10,606
|
$
|
4,612
|
$
|
13,048
|
$
|
688
|
$
|
30,634
|
||||||||||||
Charge-offs
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Recoveries
|
—
|
—
|
—
|
1
|
—
|
1
|
||||||||||||||||||
Provisions
|
(162
|
)
|
287
|
(958
|
)
|
809
|
24
|
—
|
||||||||||||||||
Ending balance
|
$
|
1,518
|
$
|
10,893
|
$
|
3,654
|
$
|
13,858
|
$
|
712
|
$
|
30,635
|
|
Six months ended December 31, 2015
|
|||||||||||||||||||||||
|
Residential
|
Residential commercial real estate
|
Credit/grocery retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Beginning balance
|
$
|
1,521
|
$
|
10,814
|
$
|
4,042
|
$
|
13,943
|
$
|
569
|
$
|
30,889
|
||||||||||||
Charge-offs
|
(98
|
)
|
—
|
—
|
(157
|
)
|
—
|
(255
|
)
|
|||||||||||||||
Recoveries
|
—
|
—
|
—
|
1
|
—
|
1
|
||||||||||||||||||
Provisions
|
95
|
79
|
(388
|
)
|
71
|
143
|
—
|
|||||||||||||||||
Ending balance
|
$
|
1,518
|
$
|
10,893
|
$
|
3,654
|
$
|
13,858
|
$
|
712
|
$
|
30,635
|
At December 31, 2016
|
||||||||||||||||||||||||
|
Residential
|
Residential commercial real estate
|
Credit/grocery retail commercial real estate
|
Other commercial real estate
|
Construction and land loans
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
20
|
$
|
—
|
$
|
—
|
$
|
68
|
$
|
20
|
$
|
108
|
||||||||||||
Collectively evaluated for impairment
|
1,606
|
14,424
|
3,327
|
10,298
|
114
|
29,769
|
||||||||||||||||||
Total
|
$
|
1,626
|
$
|
14,424
|
$
|
3,327
|
$
|
10,366
|
$
|
134
|
$
|
29,877
|
||||||||||||
Loans receivable:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
3,686
|
$
|
—
|
$
|
—
|
$
|
9,912
|
$
|
20
|
$
|
13,618
|
||||||||||||
Collectively evaluated for impairment
|
235,175
|
1,808,344
|
519,780
|
842,164
|
2,341
|
3,407,804
|
||||||||||||||||||
Total
|
$
|
238,861
|
$
|
1,808,344
|
$
|
519,780
|
$
|
852,076
|
$
|
2,361
|
$
|
3,421,422
|
||||||||||||
|
At June 30, 2016
|
||||||||||||||||||||||||
|
Residential
|
Residential commercial real estate
|
Credit/grocery retail commercial real estate
|
Other commercial real estate
|
Construction
and land loans
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
20
|
$
|
—
|
$
|
—
|
$
|
51
|
$
|
47
|
$
|
118
|
||||||||||||
Collectively evaluated for impairment
|
1,280
|
12,837
|
3,646
|
11,799
|
271
|
29,833
|
||||||||||||||||||
Total
|
$
|
1,300
|
$
|
12,837
|
$
|
3,646
|
$
|
11,850
|
$
|
318
|
$
|
29,951
|
||||||||||||
Loans receivable:
|
||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
3,631
|
$
|
310
|
$
|
—
|
$
|
9,154
|
$
|
56
|
$
|
13,151
|
||||||||||||
Collectively evaluated for impairment
|
220,070
|
1,596,566
|
457,058
|
878,289
|
4,754
|
3,156,737
|
||||||||||||||||||
Total
|
$
|
223,701
|
$
|
1,596,876
|
$
|
457,058
|
$
|
887,443
|
$
|
4,810
|
$
|
3,169,888
|
|
At December 31, 2016
|
|||||||||||||||||||||||
|
Satisfactory
|
Pass/Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Residential
|
$
|
214,800
|
$
|
1,840
|
$
|
17,882
|
$
|
4,339
|
$
|
—
|
$
|
238,861
|
||||||||||||
Residential commercial real estate
|
1,788,183
|
18,143
|
2,018
|
—
|
—
|
1,808,344
|
||||||||||||||||||
Credit/grocery retail commercial real estate
|
509,488
|
10,292
|
—
|
—
|
—
|
519,780
|
||||||||||||||||||
Other commercial real estate
|
740,627
|
72,753
|
18,974
|
19,722
|
—
|
852,076
|
||||||||||||||||||
Construction and land loans
|
2,341
|
—
|
—
|
20
|
—
|
2,361
|
||||||||||||||||||
Total
|
$
|
3,255,439
|
$
|
103,028
|
$
|
38,874
|
$
|
24,081
|
$
|
—
|
$
|
3,421,422
|
|
At June 30, 2016
|
|||||||||||||||||||||||
|
Satisfactory
|
Pass/Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Residential
|
$
|
199,911
|
$
|
18,882
|
$
|
531
|
$
|
4,377
|
$
|
—
|
$
|
223,701
|
||||||||||||
Residential commercial real estate
|
1,583,686
|
9,563
|
3,317
|
310
|
—
|
1,596,876
|
||||||||||||||||||
Credit/grocery retail commercial real estate
|
438,562
|
15,523
|
2,973
|
—
|
—
|
457,058
|
||||||||||||||||||
Other commercial real estate
|
798,457
|
51,567
|
17,553
|
19,866
|
—
|
887,443
|
||||||||||||||||||
Construction and land loans
|
4,754
|
—
|
—
|
56
|
—
|
4,810
|
||||||||||||||||||
Total
|
$
|
3,025,370
|
$
|
95,535
|
$
|
24,374
|
$
|
24,609
|
$
|
—
|
$
|
3,169,888
|
|
At December 31, 2016
|
|||||||||||||||||||||||||||
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 days or More Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Nonaccrual (1)
|
|||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||
Residential
|
$
|
1,840
|
$
|
833
|
$
|
879
|
$
|
3,552
|
$
|
235,309
|
$
|
238,861
|
$
|
893
|
||||||||||||||
Residential commercial real estate
|
246
|
—
|
—
|
246
|
1,808,098
|
1,808,344
|
—
|
|||||||||||||||||||||
Credit/grocery retail commercial real estate
|
—
|
—
|
—
|
—
|
519,780
|
519,780
|
—
|
|||||||||||||||||||||
Other commercial real estate
|
1,047
|
377
|
2,962
|
4,386
|
847,690
|
852,076
|
9,480
|
|||||||||||||||||||||
Construction and land loans
|
—
|
—
|
20
|
20
|
2,341
|
2,361
|
20
|
|||||||||||||||||||||
Total
|
$
|
3,133
|
$
|
1,210
|
$
|
3,861
|
$
|
8,204
|
$
|
3,413,218
|
$
|
3,421,422
|
$
|
10,393
|
|
At June 30, 2016
|
|||||||||||||||||||||||||||
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90 days or More Past Due
|
Total Past Due
|
Current
|
Total Loans
|
Nonaccrual (2)
|
|||||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||||||
Residential
|
$
|
1,745
|
$
|
531
|
$
|
684
|
$
|
2,960
|
$
|
220,741
|
$
|
223,701
|
$
|
931
|
||||||||||||||
Residential commercial real estate
|
3,601
|
1,166
|
—
|
4,767
|
1,592,109
|
1,596,876
|
310
|
|||||||||||||||||||||
Credit/grocery retail commercial real estate
|
—
|
—
|
—
|
—
|
457,058
|
457,058
|
—
|
|||||||||||||||||||||
Other commercial real estate
|
3,746
|
—
|
1,641
|
5,387
|
882,056
|
887,443
|
8,671
|
|||||||||||||||||||||
Construction and land loans
|
—
|
—
|
56
|
56
|
4,754
|
4,810
|
56
|
|||||||||||||||||||||
Total
|
$
|
9,092
|
$
|
1,697
|
$
|
2,381
|
$
|
13,170
|
$
|
3,156,718
|
$
|
3,169,888
|
$
|
9,968
|
(1)
|
Included in nonaccrual loans at December 31, 2016 are residential loans totaling $14,000 that were 60-89 days past due and other commercial real estate loans totaling $6.5 million that were current.
|
(2)
|
Included in nonaccrual loans at June 30, 2016 are residential loans totaling $180,000 that were 30-59 days past due; residential loans totaling $66,000, residential commercial real estate loans totaling $310,000 and other commercial real estate loans totaling $7.0 million that were current.
|
At December 31, 2016
|
At June 30, 2016
|
|||||||||||||||||||||||
Recorded Investment
|
Unpaid Principal Balance
|
Allowance
|
Recorded Investment
|
Unpaid Principal Balance
|
Allowance
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Residential
|
$
|
3,505
|
$
|
3,505
|
$
|
—
|
$
|
3,447
|
$
|
3,447
|
$
|
—
|
||||||||||||
Residential commercial real estate
|
—
|
—
|
—
|
310
|
310
|
—
|
||||||||||||||||||
Other commercial real estate
|
9,265
|
9,265
|
—
|
8,907
|
8,907
|
—
|
||||||||||||||||||
Construction and land loans
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
|
12,770
|
12,770
|
—
|
12,664
|
12,664
|
—
|
||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Residential
|
$
|
161
|
$
|
181
|
$
|
20
|
$
|
164
|
$
|
184
|
$
|
20
|
||||||||||||
Residential commercial real estate
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Other commercial real estate
|
579
|
647
|
68
|
196
|
247
|
51
|
||||||||||||||||||
Construction and land loans
|
—
|
20
|
20
|
9
|
56
|
47
|
||||||||||||||||||
|
740
|
848
|
108
|
369
|
487
|
118
|
||||||||||||||||||
Total:
|
||||||||||||||||||||||||
Residential
|
$
|
3,666
|
$
|
3,686
|
$
|
20
|
$
|
3,611
|
$
|
3,631
|
$
|
20
|
||||||||||||
Residential commercial real estate
|
—
|
—
|
—
|
310
|
310
|
—
|
||||||||||||||||||
Other commercial real estate
|
9,844
|
9,912
|
68
|
9,103
|
9,154
|
51
|
||||||||||||||||||
Construction and land loans
|
—
|
20
|
20
|
9
|
56
|
47
|
||||||||||||||||||
|
$
|
13,510
|
$
|
13,618
|
$
|
108
|
$
|
13,033
|
$
|
13,151
|
$
|
118
|
Three months ended December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||
(In thousands)
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Residential
|
$
|
3,505
|
$
|
34
|
$
|
3,533
|
$
|
59
|
||||||||
Residential commercial real estate
|
—
|
—
|
—
|
—
|
||||||||||||
Other commercial real estate
|
9,356
|
146
|
4,241
|
80
|
||||||||||||
Construction and land loans
|
—
|
—
|
—
|
—
|
||||||||||||
|
12,861
|
180
|
7,774
|
139
|
||||||||||||
With an allowance recorded:
|
||||||||||||||||
Residential
|
$
|
162
|
$
|
2
|
$
|
166
|
$
|
—
|
||||||||
Residential commercial real estate
|
—
|
—
|
292
|
—
|
||||||||||||
Other commercial real estate
|
587
|
—
|
4,941
|
—
|
||||||||||||
Construction and land loans
|
2
|
—
|
87
|
—
|
||||||||||||
|
751
|
2
|
5,486
|
—
|
||||||||||||
Total:
|
||||||||||||||||
Residential
|
$
|
3,667
|
$
|
36
|
$
|
3,699
|
$
|
59
|
||||||||
Residential commercial real estate
|
—
|
—
|
292
|
—
|
||||||||||||
Other commercial real estate
|
9,943
|
146
|
9,182
|
80
|
||||||||||||
Construction and land loans
|
2
|
—
|
87
|
—
|
||||||||||||
|
$
|
13,612
|
$
|
182
|
$
|
13,260
|
$
|
139
|
||||||||
Cash basis interest income
|
$
|
158
|
$
|
114
|
Six months ended December 31,
|
||||||||||||||||
2016
|
2015
|
|||||||||||||||
Average Recorded Investment
|
Interest Income Recognized
|
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||
(In thousands
|
||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||
Residential
|
$
|
3,480
|
$
|
69
|
$
|
3,558
|
$
|
71
|
||||||||
Residential commercial real estate
|
—
|
—
|
—
|
—
|
||||||||||||
Other commercial real estate
|
8,954
|
267
|
4,519
|
105
|
||||||||||||
Construction and land loans
|
—
|
—
|
—
|
—
|
||||||||||||
|
12,434
|
336
|
8,077
|
176
|
||||||||||||
With an allowance recorded:
|
||||||||||||||||
Residential
|
$
|
163
|
$
|
4
|
$
|
167
|
$
|
—
|
||||||||
Residential commercial real estate
|
—
|
—
|
292
|
—
|
||||||||||||
Other commercial real estate
|
597
|
—
|
5,045
|
—
|
||||||||||||
Construction and land loans
|
5
|
—
|
122
|
—
|
||||||||||||
|
765
|
4
|
5,626
|
—
|
||||||||||||
Total:
|
||||||||||||||||
Residential
|
$
|
3,643
|
$
|
73
|
$
|
3,725
|
$
|
71
|
||||||||
Residential commercial real estate
|
—
|
—
|
292
|
—
|
||||||||||||
Other commercial real estate
|
9,551
|
267
|
9,564
|
105
|
||||||||||||
Construction and land loans
|
5
|
—
|
122
|
—
|
||||||||||||
|
$
|
13,199
|
$
|
340
|
$
|
13,703
|
$
|
176
|
||||||||
Cash basis interest income
|
$
|
291
|
$
|
126
|
|
Troubled Debt Restructurings at December 31, 2016
|
|||||||||||
|
Performing
|
Nonperforming
|
Total
|
|||||||||
|
(In thousands)
|
|||||||||||
Residential
|
$
|
—
|
$
|
181
|
$
|
181
|
||||||
Other commercial real estate
|
370
|
3,743
|
4,113
|
|||||||||
Construction and land loans
|
—
|
20
|
20
|
|||||||||
Total
|
$
|
370
|
$
|
3,944
|
$
|
4,314
|
||||||
Allowance
|
$
|
—
|
$
|
108
|
$
|
108
|
||||||
|
||||||||||||
|
Troubled Debt Restructurings at June 30, 2016
|
|||||||||||
|
Performing
|
Nonperforming
|
Total
|
|||||||||
|
(In thousands)
|
|||||||||||
Residential
|
$
|
—
|
$
|
184
|
$
|
184
|
||||||
Residential commercial real estate
|
—
|
310
|
310
|
|||||||||
Other commercial real estate
|
386
|
3,703
|
4,089
|
|||||||||
Construction and land loans
|
—
|
56
|
56
|
|||||||||
Total
|
$
|
386
|
$
|
4,253
|
$
|
4,639
|
||||||
Allowance
|
$
|
—
|
$
|
118
|
$
|
118
|
|
Six months ended December 31,
|
|||||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||||||
|
Number of
Relationships
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
Number of
Relationships
|
Pre-Modification
Outstanding
Recorded
Investment
|
Post-Modification
Outstanding
Recorded
Investment
|
||||||||||||||||||
|
(Dollars in thousands)
|
(Dollars in thousands)
|
||||||||||||||||||||||
Other commercial real estate
|
—
|
—
|
—
|
1
|
3,385
|
2,307
|
||||||||||||||||||
Total
|
—
|
$
|
—
|
$
|
—
|
1
|
$
|
3,385
|
$
|
2,307
|
|
At December 31, 2016
|
|||||||||||||||
|
Amortized cost
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
U.S. Government and federal agency obligations
|
||||||||||||||||
Due in one to five years
|
$
|
6,750
|
$
|
—
|
$
|
89
|
$
|
6,661
|
||||||||
Mortgage-backed securities:
|
||||||||||||||||
FHLMC
|
20,896
|
72
|
502
|
20,466
|
||||||||||||
FNMA
|
86,877
|
114
|
1,463
|
85,528
|
||||||||||||
GNMA
|
1,335
|
56
|
—
|
1,391
|
||||||||||||
CMO
|
85,955
|
—
|
1,316
|
84,639
|
||||||||||||
|
$
|
201,813
|
$
|
242
|
$
|
3,370
|
$
|
198,685
|
|
At June 30, 2016
|
|||||||||||||||
|
Amortized cost
|
Gross
unrealized gains
|
Gross
unrealized losses
|
Fair value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
U.S. Government and federal agency obligations
|
||||||||||||||||
Due in one to five years
|
$
|
6,750
|
$
|
4
|
$
|
2
|
$
|
6,752
|
||||||||
Mortgage-backed securities:
|
||||||||||||||||
FHLMC
|
9,129
|
162
|
—
|
9,291
|
||||||||||||
FNMA
|
83,112
|
1,588
|
11
|
84,689
|
||||||||||||
GNMA
|
1,398
|
66
|
—
|
1,464
|
||||||||||||
CMO
|
67,718
|
792
|
—
|
68,510
|
||||||||||||
|
$
|
168,107
|
$
|
2,612
|
$
|
13
|
$
|
170,706
|
|
At December 31, 2016
|
|||||||||||||||||||||||
|
Less than 12 months
|
Greater than 12 months
|
Total
|
|||||||||||||||||||||
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
U.S. Government and federal agency obligations
|
$
|
6,661
|
$
|
89
|
$
|
—
|
$
|
—
|
$
|
6,661
|
$
|
89
|
||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
FHLMC
|
19,337
|
502
|
—
|
—
|
19,337
|
502
|
||||||||||||||||||
FNMA
|
71,119
|
1,377
|
1,921
|
86
|
73,040
|
1,463
|
||||||||||||||||||
CMO
|
84,640
|
1,316
|
—
|
—
|
84,640
|
1,316
|
||||||||||||||||||
|
$
|
181,757
|
$
|
3,284
|
$
|
1,921
|
$
|
86
|
$
|
183,678
|
$
|
3,370
|
|
At June 30, 2016
|
|||||||||||||||||||||||
|
Less than 12 months
|
Greater than 12 months
|
Total
|
|||||||||||||||||||||
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
U.S. Government and federal agency obligations
|
$
|
4,998
|
$
|
2
|
$
|
—
|
$
|
—
|
$
|
4,998
|
$
|
2
|
||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
FNMA
|
—
|
—
|
3,267
|
11
|
3,267
|
11
|
||||||||||||||||||
|
$
|
4,998
|
$
|
2
|
$
|
3,267
|
$
|
11
|
$
|
8,265
|
$
|
13
|
|
At December 31, 2016
|
|||||||||||||||
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Equity securities
|
$
|
601
|
$
|
1,011
|
$
|
—
|
$
|
1,612
|
||||||||
Mortgage-backed securities:
|
||||||||||||||||
FHLMC
|
606
|
26
|
—
|
632
|
||||||||||||
FNMA
|
13,240
|
294
|
—
|
13,534
|
||||||||||||
GNMA
|
51,197
|
—
|
677
|
50,520
|
||||||||||||
CMO
|
114,494
|
265
|
863
|
113,896
|
||||||||||||
|
$
|
180,138
|
$
|
1,596
|
$
|
1,540
|
$
|
180,194
|
|
At June 30, 2016
|
|||||||||||||||
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Fair value
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Equity securities
|
$
|
601
|
$
|
524
|
$
|
—
|
$
|
1,125
|
||||||||
Mortgage-backed securities:
|
||||||||||||||||
FHLMC
|
815
|
34
|
—
|
849
|
||||||||||||
FNMA
|
14,650
|
535
|
—
|
15,185
|
||||||||||||
CMO
|
123,173
|
1,548
|
30
|
124,691
|
||||||||||||
|
$
|
139,239
|
$
|
2,641
|
$
|
30
|
$
|
141,850
|
|
At December 31, 2016
|
|||||||||||||||||||||||
|
Less than 12 months
|
Greater than 12 months
|
Total
|
|||||||||||||||||||||
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
GNMA
|
$
|
50,521
|
$
|
677
|
$
|
—
|
$
|
—
|
$
|
50,521
|
$
|
677
|
||||||||||||
CMO
|
75,243
|
732
|
4,383
|
131
|
79,626
|
863
|
||||||||||||||||||
|
$
|
125,764
|
$
|
1,409
|
$
|
4,383
|
$
|
131
|
$
|
130,147
|
$
|
1,540
|
|
At June 30, 2016
|
|||||||||||||||||||||||
|
Less than 12 months
|
Greater than 12 months
|
Total
|
|||||||||||||||||||||
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
Fair value
|
Gross
unrealized
losses
|
||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
CMO
|
$
|
—
|
$
|
—
|
$
|
5,112
|
$
|
30
|
$
|
5,112
|
$
|
30
|
||||||||||||
|
$
|
—
|
$
|
—
|
$
|
5,112
|
$
|
30
|
$
|
5,112
|
$
|
30
|
|
December 31, 2016
|
June 30, 2016
|
||||||
|
(In thousands)
|
|||||||
Checking accounts
|
$
|
676,989
|
$
|
453,136
|
||||
Money market deposit accounts
|
752,460
|
681,710
|
||||||
Savings accounts
|
172,725
|
165,623
|
||||||
Time deposits
|
988,900
|
959,534
|
||||||
|
$
|
2,591,074
|
$
|
2,260,003
|
At December 31, 2016
|
At June 30, 2016
|
||||||||||||||||
text
|
Balance Sheet Line Item
|
Notional Amount
|
Fair Value
|
Notional Amount
|
Fair Value
|
||||||||||||
Cash flow hedge interest rate swaps
|
|||||||||||||||||
Gross unrealized gain
|
Other Assets
|
$
|
280,000
|
$
|
5,291
|
$
|
25,000
|
$
|
3
|
||||||||
Gross unrealized loss
|
Other Liabilities
|
150,000
|
(6,603
|
)
|
405,000
|
(17,495
|
)
|
||||||||||
Gross notional / net fair value
|
$
|
430,000
|
$
|
(1,312
|
)
|
$
|
430,000
|
$
|
(17,492
|
)
|
Three months ended December 31,
|
Six months ended December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense
|
$
|
(620
|
)
|
$
|
(303
|
)
|
$
|
(1,247
|
)
|
$
|
(303
|
)
|
||||
Amount of gain (loss) recognized in other comprehensive income
|
13,289
|
2,278
|
14,933
|
(1,879
|
)
|
|
Fair Value as of December 31, 2016
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Assets:
|
||||||||||||||||
Equity Securities
|
$
|
1,612
|
$
|
1,612
|
$
|
—
|
$
|
—
|
||||||||
Mortgage-backed securities available for sale
|
||||||||||||||||
FHLMC
|
632
|
—
|
632
|
—
|
||||||||||||
FNMA
|
13,534
|
—
|
13,534
|
—
|
||||||||||||
GNMA
|
50,520
|
—
|
50,520
|
—
|
||||||||||||
CMO
|
113,896
|
—
|
113,896
|
—
|
||||||||||||
Total securities available for sale
|
180,194
|
1,612
|
178,582
|
—
|
||||||||||||
Interest rate swaps
|
5,291
|
—
|
5,291
|
—
|
||||||||||||
Total assets
|
$
|
185,485
|
$
|
1,612
|
$
|
183,873
|
$
|
—
|
||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Interest rate swaps
|
$
|
(6,603
|
)
|
$
|
—
|
$
|
(6,603
|
)
|
$
|
—
|
|
Fair Value as of June 30, 2016
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Assets:
|
||||||||||||||||
Equity Securities
|
$
|
1,125
|
$
|
1,125
|
$
|
—
|
$
|
—
|
||||||||
Mortgage-backed securities available for sale
|
||||||||||||||||
FHLMC
|
849
|
—
|
849
|
—
|
||||||||||||
FNMA
|
15,185
|
—
|
15,185
|
—
|
||||||||||||
CMO
|
124,691
|
—
|
124,691
|
—
|
||||||||||||
Total securities available for sale
|
$
|
141,850
|
$
|
1,125
|
$
|
140,725
|
$
|
—
|
||||||||
Interest rate swap
|
3
|
—
|
3
|
—
|
||||||||||||
Total assets measured on a recurring basis
|
141,853
|
1,125
|
140,728
|
—
|
||||||||||||
Liabilities:
|
||||||||||||||||
Interest rate swaps
|
$
|
(17,495
|
)
|
$
|
—
|
$
|
(17,495
|
)
|
$
|
—
|
Fair Value as of December 31, 2016
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Residential
|
$
|
220
|
$
|
—
|
$
|
—
|
$
|
220
|
||||||||
Other commercial real estate
|
3,532
|
—
|
—
|
3,532
|
||||||||||||
Total impaired loans
|
3,752
|
—
|
—
|
3,752
|
||||||||||||
Real estate owned
|
||||||||||||||||
Other commercial real estate
|
266
|
—
|
—
|
266
|
||||||||||||
Total real estate owned
|
266
|
—
|
—
|
266
|
||||||||||||
Total assets measured on a non-recurring basis
|
$
|
4,018
|
$
|
—
|
$
|
—
|
$
|
4,018
|
Fair Value as of June 30, 2016
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Residential
|
$
|
164
|
$
|
—
|
$
|
—
|
$
|
164
|
||||||||
Other commercial real estate
|
3,269
|
—
|
—
|
3,269
|
||||||||||||
Construction and land loans
|
9
|
—
|
—
|
9
|
||||||||||||
Total impaired loans
|
3,442
|
—
|
—
|
3,442
|
||||||||||||
Real estate owned
|
||||||||||||||||
Other commercial real estate
|
487
|
—
|
—
|
487
|
||||||||||||
Total real estate owned
|
487
|
—
|
—
|
487
|
||||||||||||
Total assets measured on a non-recurring basis
|
$
|
3,929
|
$
|
—
|
$
|
—
|
$
|
3,929
|
|
December 31, 2016
|
|||||||||||||||||||
|
Carrying Amount
|
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|||||||||||||||
|
(In thousands)
|
|||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Securities held to maturity
|
$
|
201,813
|
$
|
198,685
|
$
|
—
|
$
|
198,685
|
$
|
—
|
||||||||||
Loans, net (1)
|
3,383,198
|
3,388,180
|
—
|
—
|
3,388,180
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Time deposits
|
988,900
|
999,086
|
—
|
999,086
|
—
|
|||||||||||||||
Term borrowings
|
476,135
|
475,875
|
—
|
475,875
|
—
|
(1) |
Comprised of loans (including impaired loans), net of deferred loan fees and the allowance for loan losses.
|
|
June 30, 2016
|
|||||||||||||||||||
|
Carrying Amount
|
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|||||||||||||||
|
(In thousands)
|
|||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Securities held to maturity
|
$
|
168,107
|
$
|
170,706
|
$
|
—
|
$
|
170,706
|
$
|
—
|
||||||||||
Loans, net (1)
|
3,131,957
|
3,169,724
|
—
|
—
|
3,169,724
|
|||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Time deposits
|
959,534
|
969,320
|
—
|
969,320
|
—
|
|||||||||||||||
Term borrowings
|
464,623
|
474,843
|
—
|
474,843
|
—
|
(1) |
Comprised of loans (including impaired loans), net of deferred loan fees and the allowance for loan losses.
|
|
Three months ended December 31,
|
Six months ended December 31,
|
||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Gross:
|
||||||||||||||||
Net income
|
$
|
16,354
|
$
|
25,847
|
$
|
32,644
|
$
|
45,244
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized holding loss on securities available for sale
|
(1,866
|
)
|
(2,876
|
)
|
(2,555
|
)
|
(2,156
|
)
|
||||||||
Reclassification adjustment for security gains included in net income
|
—
|
(604
|
)
|
—
|
(604
|
)
|
||||||||||
Amortization related to post-retirement obligations
|
100
|
56
|
200
|
112
|
||||||||||||
Net change in unrealized gain (loss) on interest rate swaps
|
13,909
|
2,581
|
16,180
|
(1,576
|
)
|
|||||||||||
Total other comprehensive income (loss)
|
12,143
|
(843
|
)
|
13,825
|
(4,224
|
)
|
||||||||||
Total comprehensive income
|
28,497
|
25,004
|
46,469
|
41,020
|
||||||||||||
Tax applicable to:
|
||||||||||||||||
Net income
|
4,978
|
9,470
|
10,657
|
16,252
|
||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized holding loss on securities available for sale
|
(804
|
)
|
(1,226
|
)
|
(1,101
|
)
|
(952
|
)
|
||||||||
Reclassification adjustment for security gains included in net income
|
—
|
(261
|
)
|
—
|
(261
|
)
|
||||||||||
Amortization related to post-retirement obligations
|
43
|
25
|
70
|
48
|
||||||||||||
Net change in unrealized gain (loss) on interest rate swaps
|
6,020
|
1,113
|
6,992
|
(680
|
)
|
|||||||||||
Total other comprehensive income (loss)
|
5,259
|
(349
|
)
|
5,961
|
(1,845
|
)
|
||||||||||
Total comprehensive income
|
10,237
|
9,121
|
16,618
|
14,407
|
||||||||||||
Net of tax:
|
||||||||||||||||
Net income
|
11,376
|
16,377
|
21,987
|
28,992
|
||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in unrealized holding loss on securities available for sale
|
(1,062
|
)
|
(1,650
|
)
|
(1,454
|
)
|
(1,204
|
)
|
||||||||
Reclassification adjustment for security gains included in net income
|
—
|
(343
|
)
|
—
|
(343
|
)
|
||||||||||
Amortization related to post-retirement obligations
|
57
|
31
|
130
|
64
|
||||||||||||
Net change in unrealized gain (loss) on interest rate swaps
|
7,889
|
1,468
|
9,188
|
(896
|
)
|
|||||||||||
Total other comprehensive income (loss)
|
6,884
|
(494
|
)
|
7,864
|
(2,379
|
)
|
||||||||||
Total comprehensive income
|
$
|
18,260
|
$
|
15,883
|
$
|
29,851
|
$
|
26,613
|
|
Unrealized Holding Loss on Securities Available for Sale
|
Post Retirement Obligations
|
Unrealized Holding Loss on Interest Rate Swaps
|
Accumulated Other Comprehensive (Loss), Net of Tax
|
||||||||||||
Balance at June 30, 2016
|
$
|
1,529
|
$
|
(1,657
|
)
|
$
|
(9,944
|
)
|
$
|
(10,072
|
)
|
|||||
Net change
|
(1,454
|
)
|
130
|
9,188
|
7,864
|
|||||||||||
Balance at December 31, 2016
|
$
|
75
|
$
|
(1,527
|
)
|
$
|
(756
|
)
|
$
|
(2,208
|
)
|
|||||
|
||||||||||||||||
Balance at June 30, 2015
|
$
|
1,496
|
$
|
(1,316
|
)
|
$
|
(2,028
|
)
|
$
|
(1,848
|
)
|
|||||
Net change
|
(1,547
|
)
|
64
|
(896
|
)
|
(2,379
|
)
|
|||||||||
Balance at December 31, 2015
|
$
|
(51
|
)
|
$
|
(1,252
|
)
|
$
|
(2,924
|
)
|
$
|
(4,227
|
)
|
Three months ended December 31,
|
Six months ended December 31,
|
||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Component
|
Affected line item in the Consolidated Statement of Income
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Reclassification adjustment for security gains included in net income
|
Net gain on sale of securities available for sale
|
$
|
—
|
$
|
(604
|
)
|
$
|
—
|
$
|
(604
|
)
|
||||||
|
|
||||||||||||||||
Amortization related to post-retirement obligations (1)
|
|
||||||||||||||||
Net loss
|
|
100
|
56
|
200
|
112
|
||||||||||||
Compensation, payroll taxes and fringe benefits
|
100
|
56
|
200
|
112
|
|||||||||||||
|
|
||||||||||||||||
Total before tax
|
100
|
(548
|
)
|
200
|
(492
|
)
|
|||||||||||
Income tax benefit (expense)
|
43
|
(236
|
)
|
70
|
(213
|
)
|
|||||||||||
Net of tax
|
57
|
(312
|
)
|
130
|
(279
|
)
|
|
12/31/2016
|
9/30/2016
|
6/30/2016
|
3/31/2016
|
12/31/2015
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Delinquency Totals
|
||||||||||||||||||||
30—59 days past due
|
$
|
3,133
|
$
|
1,686
|
$
|
8,912
|
$
|
2,930
|
$
|
6,320
|
||||||||||
60—89 days past due
|
1,196
|
1,060
|
1,698
|
1,184
|
404
|
|||||||||||||||
Nonaccrual
|
10,393
|
10,537
|
9,968
|
9,989
|
10,880
|
|||||||||||||||
Total
|
$
|
14,722
|
$
|
13,283
|
$
|
20,578
|
$
|
14,103
|
$
|
17,604
|
||||||||||
Non Performing Asset Totals
|
||||||||||||||||||||
Nonaccrual loans, per above
|
$
|
10,393
|
$
|
10,537
|
$
|
9,968
|
$
|
9,989
|
$
|
10,880
|
||||||||||
Real Estate Owned
|
266
|
449
|
487
|
487
|
487
|
|||||||||||||||
Total
|
$
|
10,659
|
$
|
10,986
|
$
|
10,455
|
$
|
10,476
|
$
|
11,367
|
||||||||||
Nonaccrual loans to total loans
|
0.30
|
%
|
0.32
|
%
|
0.31
|
%
|
0.33
|
%
|
0.37
|
%
|
||||||||||
Delinquent loans to total loans
|
0.43
|
%
|
0.41
|
%
|
0.65
|
%
|
0.46
|
%
|
0.60
|
%
|
||||||||||
Non performing assets to total assets
|
0.27
|
%
|
0.29
|
%
|
0.28
|
%
|
0.29
|
%
|
0.32
|
%
|
|
Average Balance Sheet and Yield/Rate Information
For the Three Months Ended (unaudited)
|
|||||||||||||||||||||||
|
December 31, 2016
|
December 31, 2015
|
||||||||||||||||||||||
|
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)
|
$
|
3,263,994
|
$
|
33,135
|
4.06
|
%
|
$
|
2,812,491
|
$
|
31,148
|
4.43
|
%
|
||||||||||||
Federal Home Loan Bank Stock
|
33,053
|
417
|
5.05
|
%
|
34,155
|
391
|
4.58
|
%
|
||||||||||||||||
Securities available for sale
|
182,548
|
826
|
1.81
|
%
|
233,061
|
1,154
|
1.98
|
%
|
||||||||||||||||
Securities held to maturity
|
190,524
|
871
|
1.83
|
%
|
136,653
|
663
|
1.94
|
%
|
||||||||||||||||
Federal funds sold and short term investments
|
1,255
|
2
|
0.64
|
%
|
1,600
|
1
|
0.25
|
%
|
||||||||||||||||
Total interest-earning assets
|
3,671,374
|
35,251
|
3.84
|
%
|
3,217,960
|
33,357
|
4.15
|
%
|
||||||||||||||||
Non-interest-earning assets
|
199,784
|
181,344
|
||||||||||||||||||||||
Total assets
|
$
|
3,871,158
|
$
|
3,399,304
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings deposits
|
170,291
|
97
|
0.23
|
%
|
157,025
|
94
|
0.24
|
%
|
||||||||||||||||
Money market
|
733,343
|
1,895
|
1.03
|
%
|
670,240
|
1,347
|
0.80
|
%
|
||||||||||||||||
Checking accounts
|
666,155
|
728
|
0.44
|
%
|
448,086
|
418
|
0.37
|
%
|
||||||||||||||||
Time deposits
|
993,114
|
3,244
|
1.31
|
%
|
839,997
|
2,597
|
1.24
|
%
|
||||||||||||||||
Total deposits
|
2,562,903
|
5,964
|
0.93
|
%
|
2,115,348
|
4,456
|
0.84
|
%
|
||||||||||||||||
Borrowings
|
671,350
|
3,058
|
1.82
|
%
|
668,983
|
3,607
|
2.16
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
3,234,253
|
9,022
|
1.12
|
%
|
2,784,331
|
8,063
|
1.16
|
%
|
||||||||||||||||
Non-interest-bearing liabilities
|
91,404
|
80,764
|
||||||||||||||||||||||
Total liabilities
|
3,325,657
|
2,865,095
|
||||||||||||||||||||||
Stockholders' equity
|
545,501
|
534,209
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
3,871,158
|
$
|
3,399,304
|
||||||||||||||||||||
Net interest income
|
$
|
26,229
|
$
|
25,294
|
||||||||||||||||||||
Net interest rate spread (2)
|
2.72
|
%
|
2.99
|
%
|
||||||||||||||||||||
Net interest-earning assets (3)
|
$
|
437,121
|
$
|
433,629
|
||||||||||||||||||||
Net interest margin (4)
|
2.86
|
%
|
3.14
|
%
|
||||||||||||||||||||
Average of interest-earning assets to interest-bearing liabilities
|
113.52
|
%
|
115.57
|
%
|
(1) |
Average Outstanding Balance includes nonaccrual loans and interest earned includes prepayment income.
|
(2) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3) |
Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
|
(4) |
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, 2016
|
December 31, 2015
|
||||||||||||||||||||||
|
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)
|
$
|
3,207,754
|
$
|
65,108
|
4.06
|
%
|
2,785,918
|
$
|
61,937
|
4.45
|
%
|
|||||||||||||
Federal Home Loan Bank Stock
|
33,110
|
874
|
5.28
|
%
|
36,012
|
792
|
4.40
|
%
|
||||||||||||||||
Securities available for sale
|
174,703
|
1,652
|
1.89
|
%
|
242,252
|
2,357
|
1.95
|
%
|
||||||||||||||||
Securities held to maturity
|
181,214
|
1,674
|
1.85
|
%
|
124,166
|
1,234
|
1.99
|
%
|
||||||||||||||||
Federal funds sold and short term investments
|
1,032
|
3
|
0.58
|
%
|
1,630
|
2
|
0.25
|
%
|
||||||||||||||||
Total interest-earning assets
|
3,597,813
|
69,311
|
3.85
|
%
|
3,189,978
|
66,322
|
4.16
|
%
|
||||||||||||||||
Non-interest-earning assets
|
193,229
|
180,870
|
||||||||||||||||||||||
Total assets
|
$
|
3,791,042
|
$
|
3,370,848
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings deposits
|
168,627
|
194
|
0.23
|
%
|
157,956
|
188
|
0.24
|
%
|
||||||||||||||||
Money market
|
723,849
|
3,779
|
1.04
|
%
|
644,928
|
2,186
|
0.68
|
%
|
||||||||||||||||
Checking accounts
|
608,520
|
1,277
|
0.42
|
%
|
442,274
|
814
|
0.37
|
%
|
||||||||||||||||
Time deposits
|
982,725
|
6,453
|
1.31
|
%
|
810,822
|
4,930
|
1.22
|
%
|
||||||||||||||||
Total deposits
|
2,483,721
|
11,703
|
0.94
|
%
|
2,055,980
|
8,118
|
0.79
|
%
|
||||||||||||||||
Borrowings
|
672,719
|
6,079
|
1.81
|
%
|
710,119
|
8,761
|
2.47
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
3,156,440
|
17,782
|
1.13
|
%
|
2,766,099
|
16,879
|
1.22
|
%
|
||||||||||||||||
Non-interest-bearing liabilities
|
92,637
|
76,991
|
||||||||||||||||||||||
Total liabilities
|
3,249,077
|
2,843,090
|
||||||||||||||||||||||
Stockholders' equity
|
541,965
|
527,758
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
3,791,042
|
$
|
3,370,848
|
||||||||||||||||||||
Net interest income
|
$
|
51,529
|
$
|
49,443
|
||||||||||||||||||||
Net interest rate spread (2)
|
2.72
|
%
|
2.94
|
%
|
||||||||||||||||||||
Net interest-earning assets (3)
|
$
|
441,373
|
$
|
423,879
|
||||||||||||||||||||
Net interest margin (4)
|
2.86
|
%
|
3.10
|
%
|
||||||||||||||||||||
Average of interest-earning assets to interest-bearing liabilities
|
113.98
|
%
|
115.32
|
%
|
(1) |
Average Outstanding Balance includes nonaccrual loans and interest earned includes prepayment income.
|
(2) |
Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
|
(3) |
Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
|
(4) |
Net interest margin represents net interest income divided by average total interest-earning assets.
|
|
Three months ended December 31,
|
Increase / (decrease)
|
||||||||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||||||||||
|
Interest Income
|
Yield
|
Interest Income
|
Yield
|
Interest Income
|
Average
Balance
|
Yield
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Interest on loans
|
$
|
33,135
|
4.06
|
%
|
$
|
31,148
|
4.43
|
%
|
$
|
1,987
|
$
|
451,503
|
(0.37
|
)%
|
||||||||||||||
Dividends on FHLB stock
|
417
|
5.05
|
%
|
391
|
4.58
|
%
|
26
|
(1,102
|
)
|
0.47
|
%
|
|||||||||||||||||
Interest on securities AFS
|
826
|
1.81
|
%
|
1,154
|
1.98
|
%
|
(328
|
)
|
(50,513
|
)
|
(0.17
|
)%
|
||||||||||||||||
Interest on securities HTM
|
871
|
1.83
|
%
|
663
|
1.94
|
%
|
208
|
53,871
|
(0.11
|
)%
|
||||||||||||||||||
Interest on federal funds sold and short term investments
|
2
|
0.64
|
%
|
1
|
0.25
|
%
|
1
|
(345
|
)
|
0.39
|
%
|
|||||||||||||||||
Total interest income
|
$
|
35,251
|
3.84
|
%
|
$
|
33,357
|
4.15
|
%
|
$
|
1,894
|
$
|
453,414
|
(0.31
|
)%
|
|
Three months ended December 31,
|
Increase / (decrease)
|
||||||||||||||||||||||||||
|
2016
|
2015
|
Average
|
|||||||||||||||||||||||||
|
Interest Expense
|
Cost
|
Interest Expense
|
Cost
|
Interest Expense
|
Balance
|
Cost
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Savings deposits
|
$
|
97
|
0.23
|
%
|
$
|
94
|
0.24
|
%
|
$
|
3
|
$
|
13,266
|
(0.01
|
)%
|
||||||||||||||
Money market
|
1,895
|
1.03
|
%
|
1,347
|
0.80
|
%
|
548
|
63,103
|
0.23
|
%
|
||||||||||||||||||
Checking accounts
|
728
|
0.44
|
%
|
418
|
0.37
|
%
|
310
|
218,069
|
0.07
|
%
|
||||||||||||||||||
Time deposits
|
3,244
|
1.31
|
%
|
2,597
|
1.24
|
%
|
647
|
153,117
|
0.07
|
%
|
||||||||||||||||||
Total deposits
|
5,964
|
0.93
|
%
|
4,456
|
0.84
|
%
|
1,508
|
447,555
|
0.09
|
%
|
||||||||||||||||||
Borrowings
|
3,058
|
1.82
|
%
|
3,607
|
2.16
|
%
|
(549
|
)
|
2,367
|
(0.34
|
)%
|
|||||||||||||||||
$
|
9,022
|
1.12
|
%
|
$
|
8,063
|
1.16
|
%
|
$
|
959
|
$
|
449,922
|
(0.04
|
)%
|
|
Including Prepayment Penalties
|
Excluding Prepayment Penalties*
|
||||||||||||||||||||||
For the Three Months Ended
|
Net Interest
Income Before
Provision
|
Spread
|
Margin
|
Net Interest
Income Before
Provision
|
Spread
|
Margin
|
||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
December 31, 2016
|
$
|
26,229
|
2.72
|
%
|
2.86
|
%
|
$
|
25,030
|
2.59
|
%
|
2.73
|
%
|
||||||||||||
September 30, 2016
|
25,300
|
2.73
|
%
|
2.87
|
%
|
24,669
|
2.65
|
%
|
2.80
|
%
|
||||||||||||||
June 30, 2016
|
25,707
|
2.82
|
%
|
2.97
|
%
|
24,169
|
2.64
|
%
|
2.79
|
%
|
||||||||||||||
March 31, 2016
|
25,151
|
2.86
|
%
|
3.01
|
%
|
24,154
|
2.74
|
%
|
2.89
|
%
|
||||||||||||||
December 31, 2015
|
25,294
|
2.99
|
%
|
3.14
|
%
|
23,744
|
2.79
|
%
|
2.95
|
%
|
||||||||||||||
* Prepayment penalties on loans are excluded.
|
|
Three months ended December 31,
|
|||||||
|
2016
|
2015
|
||||||
|
(Dollars in thousands)
|
|||||||
Balance at beginning of period
|
$
|
29,878
|
$
|
30,634
|
||||
Provisions charged to operations
|
—
|
—
|
||||||
Recoveries of loans previously charged off
|
—
|
1
|
||||||
Loans charged off
|
(1
|
)
|
—
|
|||||
Balance at end of period
|
$
|
29,877
|
$
|
30,635
|
||||
Allowance for loan losses to total loans
|
0.87
|
%
|
1.04
|
%
|
||||
Net charge-offs (annualized) to average loans outstanding
|
0.00
|
%
|
0.00
|
%
|
|
Six months ended December 31,
|
Increase / (decrease)
|
||||||||||||||||||||||||||
|
2016
|
2015
|
||||||||||||||||||||||||||
|
Interest Income
|
Yield
|
Interest Income
|
Yield
|
Interest Income
|
Average
Balance
|
Yield
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Interest on loans
|
$
|
65,108
|
4.06
|
%
|
$
|
61,937
|
4.45
|
%
|
$
|
3,171
|
$
|
421,836
|
(0.39
|
)%
|
||||||||||||||
Dividends on FHLB stock
|
874
|
5.28
|
%
|
792
|
4.40
|
%
|
82
|
(2,902
|
)
|
0.88
|
%
|
|||||||||||||||||
Interest on securities AFS
|
1,652
|
1.89
|
%
|
2,357
|
1.95
|
%
|
(705
|
)
|
(67,549
|
)
|
(0.06
|
)%
|
||||||||||||||||
Interest on securities HTM
|
1,674
|
1.85
|
%
|
1,234
|
1.99
|
%
|
440
|
57,048
|
(0.14
|
)%
|
||||||||||||||||||
Interest on federal funds sold and short term investments
|
3
|
0.58
|
%
|
2
|
0.25
|
%
|
1
|
(598
|
)
|
0.33
|
%
|
|||||||||||||||||
$
|
69,311
|
3.85
|
%
|
$
|
66,322
|
4.16
|
%
|
$
|
2,989
|
$
|
407,835
|
(0.31
|
)%
|
|
Six months ended December 31,
|
Increase / (decrease)
|
||||||||||||||||||||||||||
|
2016
|
2015
|
Average
|
|||||||||||||||||||||||||
|
Interest Expense
|
Cost
|
Interest Expense
|
Cost
|
Interest Expense
|
Balance
|
Cost
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Savings deposits
|
$
|
194
|
0.23
|
%
|
$
|
188
|
0.24
|
%
|
$
|
6
|
$
|
10,671
|
(0.01
|
)%
|
||||||||||||||
Money market
|
3,779
|
1.04
|
%
|
2,186
|
0.68
|
%
|
1,593
|
78,921
|
0.36
|
%
|
||||||||||||||||||
Checking accounts
|
1,277
|
0.42
|
%
|
814
|
0.37
|
%
|
463
|
166,246
|
0.05
|
%
|
||||||||||||||||||
Time deposits
|
6,453
|
1.31
|
%
|
4,930
|
1.22
|
%
|
1,523
|
171,903
|
0.09
|
%
|
||||||||||||||||||
Total deposits
|
11,703
|
0.94
|
%
|
8,118
|
0.79
|
%
|
3,585
|
427,741
|
0.15
|
%
|
||||||||||||||||||
Borrowings
|
6,079
|
1.81
|
%
|
8,761
|
2.47
|
%
|
(2,682
|
)
|
(37,400
|
)
|
(0.66
|
)%
|
||||||||||||||||
$
|
17,782
|
1.13
|
%
|
$
|
16,879
|
1.22
|
%
|
$
|
903
|
$
|
390,341
|
(0.09
|
)%
|
|
Six months ended December 31,
|
|||||||
|
2016
|
2015
|
||||||
|
(Dollars in thousands)
|
|||||||
Balance at beginning of period
|
$
|
29,951
|
$
|
30,889
|
||||
Provisions charged to operations
|
—
|
—
|
||||||
Recoveries of loans previously charged off
|
2
|
1
|
||||||
Loans charged off
|
(76
|
)
|
(255
|
)
|
||||
Balance at end of period
|
$
|
29,877
|
$
|
30,635
|
||||
Allowance for loan losses to total loans
|
0.87
|
%
|
1.04
|
%
|
||||
Net charge-offs (annualized) to average loans outstanding
|
0.01
|
%
|
0.02
|
%
|
December 31, 2016
|
||||||||||||||||
Actual
|
Required
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Company:
|
||||||||||||||||
Common Equity Tier 1 (CET1) (to risk-weighted assets)
|
$
|
540,672
|
15.32
|
%
|
$
|
158,834
|
4.50
|
%
|
||||||||
Tier 1capital (to risk-weighted assets)
|
540,672
|
15.32
|
%
|
211,779
|
6.00
|
%
|
||||||||||
Total capital (to risk-weighted assets)
|
570,549
|
16.16
|
%
|
282,372
|
8.00
|
%
|
||||||||||
Tier 1 leverage capital (to average assets)
|
540,672
|
13.99
|
%
|
154,568
|
4.00
|
%
|
||||||||||
Capital Conservation Buffer
|
288,178
|
8.16
|
%
|
22,060
|
0.63
|
%
|
||||||||||
|
June 30, 2016
|
|||||||||||||||
|
Actual
|
Required
|
||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
Company:
|
||||||||||||||||
Common Equity Tier 1 (CET1) (to risk-weighted assets)
|
$
|
545,272
|
16.77
|
%
|
$
|
146,311
|
4.50
|
%
|
||||||||
Tier 1 capital (to risk-weighted assets)
|
545,272
|
16.77
|
%
|
195,081
|
6.00
|
%
|
||||||||||
Total capital (to risk-weighted assets)
|
575,223
|
17.69
|
%
|
260,108
|
8.00
|
%
|
||||||||||
Tier 1 leverage capital (to average assets)
|
545,272
|
14.94
|
%
|
145,676
|
4.00
|
%
|
||||||||||
Capital Conservation Buffer
|
315,034
|
9.69
|
%
|
20,321
|
0.63
|
%
|
December 31, 2016
|
||||||||||||||||||||||||
Actual
|
Required
|
Well-Capitalized
|
||||||||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Bank:
|
||||||||||||||||||||||||
Common Equity Tier 1 ("CET1") (to risk weighted assets)
|
$
|
492,578
|
13.96
|
%
|
$
|
158,829
|
4.50
|
%
|
$
|
229,420
|
6.50
|
%
|
||||||||||||
Tier 1 capital (to risk-weighted assets)
|
492,578
|
13.96
|
%
|
211,772
|
6.00
|
%
|
282,363
|
8.00
|
%
|
|||||||||||||||
Total capital (to risk-weighted assets)
|
522,455
|
14.80
|
%
|
282,363
|
8.00
|
%
|
352,954
|
10.00
|
%
|
|||||||||||||||
Tier 1 Leverage capital (to average assets)
|
492,578
|
12.75
|
%
|
154,539
|
4.00
|
%
|
193,174
|
5.00
|
%
|
|||||||||||||||
Capital conservation buffer
|
240,092
|
6.80
|
%
|
22,060
|
0.63
|
%
|
June 30, 2016
|
||||||||||||||||||||||||
Actual
|
Required
|
Well-Capitalized
|
||||||||||||||||||||||
Amount
|
Rate
|
Amount
|
Rate
|
Amount
|
Rate
|
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Bank:
|
||||||||||||||||||||||||
Common Equity Tier 1 ("CET1") (to risk weighted assets)
|
$
|
466,987
|
14.36
|
%
|
$
|
146,288
|
4.50
|
%
|
$
|
211,305
|
6.50
|
%
|
||||||||||||
Tier 1 capital (to risk-weighted assets)
|
466,987
|
14.36
|
%
|
195,050
|
6.00
|
%
|
260,067
|
8.00
|
%
|
|||||||||||||||
Total capital (to risk-weighted assets)
|
496,938
|
15.28
|
%
|
260,067
|
8.00
|
%
|
325,084
|
10.00
|
%
|
|||||||||||||||
Tier 1 Leverage capital (to average assets)
|
466,987
|
12.86
|
%
|
145,255
|
4.00
|
%
|
181,569
|
5.00
|
%
|
|||||||||||||||
Capital conservation buffer
|
236,871
|
7.29
|
%
|
20,318
|
0.63
|
%
|
(i)
|
originating multifamily and commercial real estate loans that generally tend to have shorter interest duration and generally have interest rates that reset in five years or less. The chart below provides maturity/repricing information for the entire loan portfolio, the majority of which is comprised of multifamily and commercial real estate loans;
|
(ii)
|
investing in shorter duration securities and mortgage-backed securities;
|
(iii)
|
obtaining general financing through FHLB advances with a fixed long term; and
|
(iv)
|
utilizing interest rate swaps or other derivative instruments
|
Loan Portfolio by Reprice/Maturity Date
|
||||||||||||||||
At December 31, 2016
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Repricing or Maturing Within:
|
Amount
|
Weighted Average Rate
|
% of Total Loans
|
Cumulative % of Total Loans
|
||||||||||||
1 Year or less
|
$
|
491,936
|
3.90
|
%
|
14.38
|
%
|
14.38
|
%
|
||||||||
1 - 3 years
|
1,258,781
|
3.45
|
%
|
36.79
|
%
|
51.17
|
%
|
|||||||||
3 - 5 years
|
890,755
|
3.66
|
%
|
26.03
|
%
|
77.20
|
%
|
|||||||||
5 - 7 years
|
319,006
|
3.99
|
%
|
9.32
|
%
|
86.52
|
%
|
|||||||||
7 to 10 years
|
113,786
|
4.55
|
%
|
3.33
|
%
|
89.85
|
%
|
|||||||||
Greater than 10 years
|
347,158
|
4.66
|
%
|
10.15
|
%
|
100.00
|
%
|
|||||||||
Total
|
$
|
3,421,422
|
3.84
|
%
|
100.00
|
%
|
Estimated Increase
(Decrease) in NPV
|
NPV as a Percentage of
Present Value of Assets (3)
|
|||||||||||||||||||||
Change in Interest Rates (basis points) (1)
|
Estimated
NPV (2)
|
Amount
|
Percent
|
NPV Ratio (4)
|
Increase
(Decrease)
basis points
|
|||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||
+200
|
$
|
532,159
|
$
|
(73,572
|
)
|
(12.1
|
)%
|
13.7
|
%
|
(128
|
)
|
|||||||||||
+100
|
572,088
|
(33,643
|
)
|
(5.6
|
)%
|
14.5
|
%
|
(55
|
)
|
|||||||||||||
—
|
605,731
|
—
|
—
|
%
|
15.0
|
%
|
—
|
|||||||||||||||
(100
|
)
|
665,238
|
59,507
|
9.8
|
%
|
16.0
|
%
|
100
|
(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.
|
(a) |
Unregistered Sale of Equity Securities. There were no sales of unregistered securities during the period covered by this report.
|
(b) |
Use of Proceeds. Not applicable.
|
(c) |
Repurchase of Our Equity Securities. The following table shows the Company's repurchases of its common stock for each calendar month in the three months ended December 31, 2016 and the stock repurchase plan approved by our Board of Directors.
|
Period
|
Total Number of Shares Repurchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plan
|
Maximum Number of Shares That May Yet Be Purchased Under the Plan
|
||||||||||||
October 31, 2016
|
—
|
$
|
—
|
—
|
1,892,553
|
|||||||||||
November 30, 2016
|
3,702
|
17.63
|
3,702
|
1,888,851
|
||||||||||||
December 31, 2016
|
—
|
—
|
—
|
1,888,851
|
||||||||||||
|
3,702
|
$
|
17.63
|
3,702
|
3.1
|
|
Certificate of Incorporation 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*, ****
|
10.9
|
|
Oritani Financial Corp. 2011 Equity Incentive Plan***, ****
|
21
|
|
Subsidiaries of Registrant**
|
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
|
101
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Consolidated Statements of Financial Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial Corp. (file no. 333-165226), originally filed with the Securities and Exchange Commission on March 5, 2010.
|
**
|
Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial Corp. (file no. 333-137309), originally filed with the Securities and Exchange Commission on September 14, 2006.
|
***
|
Incorporated by reference to the Company's Proxy Statement for the 2011 Special Meeting of Stockholders filed with the Securities and Exchange Commission on June 27, 2011 (file No. 001-34786).
|
****
|
Available on our website www.oritani.com.
|
*****
|
Management contract, compensatory plan or arrangement.
|
|
|
ORITANI FINANCIAL CORP.
|
|
|
|
|
|
Date:
|
February 8, 2017
|
/s/ Kevin J. Lynch
|
|
|
|
Kevin J. Lynch
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
February 8, 2017
|
/s/ John M. Fields, Jr.
|
|
|
|
John M. Fields, Jr.
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|