EXHIBIT 99.1
TOWNSHIP OF WASHINGTON, N.J., April 26, 2010 (GLOBE NEWSWIRE) -- Oritani Financial Corp. (the "Company" or "OFC") (Nasdaq:ORIT), the holding company for Oritani Bank (the "Bank") reported net income of $5.0 million, or $0.14 per share, for the three months ended March 31, 2010, and $12.4 million, or $0.34 per share, for the nine months ended March 31, 2010. This compares to net income of $1.5 million ($0.04 per share) and $4.0 million ($0.11 per share) for the corresponding 2009 periods, respectively.
"We predicted significant decreases in nonaccrual loans and we delivered" said Kevin J. Lynch, the Company's Chairman, President and CEO. "I expect the reductions to continue. Problem asset disposition will remain a major management focus until the number is reduced to zero." Mr. Lynch continued "We have always believed in the disciplines and quality of our underwriting, which was a major factor in allowing us to realize such large recoveries on our problem asset disposals." Over the quarter ended March 31, 2010, the Company collected $1.0 million of delinquent interest and prepayment penalties, $146,000 of late charges and $150,000 of reimbursed legal expenses in connection with problem loan disposals.
Mr. Lynch continued "Other facets of operations are also showing great strength. Our loan growth has been consistently solid and our new originations continue to meet our enhanced underwriting guidelines. We continue to show sizeable increases in deposits with a focus on lower cost core deposits. When combined with the present rate environment, we have been able to significantly reduce the overall cost of deposits."
Comparison of Operating Results for the Periods Ended March 31, 2010 and 2009
Net Income. Net income increased $3.5 million to $5.0 million for the quarter ended March 31, 2010, from $1.5 million for the corresponding 2009 quarter. The primary driver of the increased income in the 2010 period was increased net interest income before provision for loan losses. Net interest income increased by $6.1 million, or 56.2%, to $16.9 million for the quarter ended March 31, 2010, from $10.8 million for the quarter ended March 31, 2009. The increase is primarily due to a higher net interest spread and a larger asset base. Net income was also augmented by recovery of deferred interest and other related items in conjunction with problem loan disposals. The after tax impact of such items totaled $807,000 for the quarter ended March 31, 2010. Our annualized return on average assets was 0.99% for the quarter ended March 31, 2010 and 0.35% for the corresponding 2009 quarter. Our annualized return on average equity was 8.02% for th e quarter ended March 31, 2010 and 2.47% for the corresponding 2009 quarter.
Net income increased $8.4 million to $12.4 million for the nine months ended March 31, 2010, from net income of $4.0 million for the corresponding 2009 period. The nine month period ended March 31, 2010 was also positively impacted by a higher net interest spread, a larger asset base and recoveries (of delinquent interest, prepayment penalties, late charges and expense reimbursement) associated with problem loan disposals. The after tax impact of these recoveries totaled $1.9 million for the nine months ended March 31, 2010. The increased income is also partially attributable to securities writedowns in the 2009 period (which reduced 2009 net income) and a gain on sale of assets in the 2010 period. Our annualized return on average assets was 0.83% and our annualized return on average equity was 6.74% for the nine month period ended March 31, 2010, versus 0.33% and 2.11% for the nine month period ended March 31, 2009, respectively.
Total Interest Income. Total interest income increased by $4.4 million, or 19.5%, to $27.0 million for the three months ended March 31, 2010, from $22.6 million for the three months ended March 31, 2009. The largest increase occurred in interest on loans, which increased $4.0 million, or 21.6%, to $22.6 million for the three months ended March 31, 2010, from $18.6 million for the three months ended March 31, 2009. Over that same period, the average balance of loans increased by $166.1 million while the yield on the portfolio increased 43 basis points on an actual basis, and 13 basis points on a normalized basis. Included in interest on loans for the three months ended March 31, 2010 is $1.0 million of prior period and penalty interest recovered in conjunction with problem loan disposals. These amounts were not included in income for the normalized calculation of loan yield. Continuing a trend that began in the quarter ended June 30, 2009, excess liquidity is generally being deployed in securities classified as available for sale ("AFS") as management believes such investments provide the best risk/reward profile considering the current and projected cash needs of the Company. Such investments are typically callable notes of government sponsored agencies with limited optionality and call features that increased the likelihood that the note would be called. Management classified the investments as AFS so that they could be sold should unexpected liquidity needs develop. Interest on securities AFS increased by $1.5 million to $2.2 million for the three months ended March 31, 2010, from $713,000 for the three months ended March 31, 2009. The average balance of securities AFS increased $243.3 million over that same period. The yield on the portfolio decreased considerably due to current market rates as well as the conservative structure of the new investments. Cash flows from the mortgage-backed securities ("MBS") portfolios were pri marily redeployed into securities AFS because, as described above, management felt securities AFS provided the best risk/reward profile given current economic circumstances and investment options. Interest on MBS held to maturity ("HTM") decreased by $643,000, or 46.8%, to $730,000 for the three months ended March 31, 2010, from $1.4 million for the three months ended March 31, 2009. Interest on MBS AFS decreased by $622,000, or 35.3%, to $1.1 million for the three months ended March 31, 2010, from $1.8 million for the three months ended March 31, 2009. The combined average balances of the two MBS portfolios decreased $106.7 million over the periods.
Total interest income increased by $13.1 million, or 20.2%, to $78.3 million for the nine months ended March 31, 2010, from $65.1 million for the nine months ended March 31, 2009. The largest increase occurred in interest on loans, which increased $11.4 million, or 21.5%, to $64.6 million for the nine months ended March 31, 2010, from $53.2 million for the nine months ended March 31, 2009. Over that same period, the average balance of loans increased by $197.7 million while the yield on the portfolio increased 23 basis points on an actual basis and was flat on a normalized basis. Included in interest on loans for the nine months ended March 31, 2010 is $2.3 million of prior period and penalty interest recovered in conjunction with problem loan disposals. These amounts were not included in income for the normalized calculation of loan yield. Due primarily to the reasons described in the preceding paragraph, there were significant changes to income on securities AFS, MBS HTM and MBS AFS. Interest on securities AFS increased by $4.6 million to $5.9 million for the nine months ended March 31, 2010, from $1.3 million for the nine months ended March 31, 2009. The average balance of securities AFS increased $235.3 million over that same period. Interest on MBS HTM decreased by $1.8 million to $2.6 million for the nine months ended March 31, 2010, from $4.4 million for the nine months ended March 31, 2009. Interest on MBS AFS decreased by $1.6 million to $3.9 million for the nine months ended March 31, 2010, from $5.4 million for the nine months ended March 31, 2009. The combined average balances of the two MBS portfolios decreased $90.0 million over the period.
Total Interest Expense. Total interest expense decreased by $1.7 million, or 14.1%, to $10.1 million for the three months ended March 31, 2010, from $11.8 million for the three months ended March 31, 2009. Interest expense on deposits decreased by $1.7 million, or 24.9%, to $5.0 million for the three months ended March 31, 2010, from $6.7 million for the three months ended March 31, 2009. The average balance of interest bearing deposits increased by $277.8 million and the average cost of these funds decreased 119 basis points over this period. Market interest rates allowed the Bank to reprice many maturing time deposits, as well as other interest bearing deposits, at lower rates, decreasing the cost of funds. While the Company expects this trend to continue, the rate of decrease is expected to decelerate significantly, as the majority of the deposit portfolio has repriced in a low rate environment. Interest expense on borrowings was essentially stable, the average balance decreased $2.2 million and the cost increased 2 basis points.
Total interest expense decreased by $99,000 to $32.8 million for the nine months ended March 31, 2010, from $32.9 million for the nine months ended March 31, 2009. Interest expense on deposits decreased by $657,000, or 3.7%, to $17.1 million for the nine months ended March 31, 2010, from $17.8 million for the nine months ended March 31, 2009. The average balance of interest bearing deposits increased by $377.0 million and the average cost of these funds decreased 98 basis points over this period. As described in the preceding paragraph, market rates allowed the Company to reprice deposits at lower rates. Interest expense on borrowings increased by $558,000, or 3.7%, to $15.6 million for the nine months ended March 31, 2010, from $15.1 million for the nine months ended March 31, 2009. The average balance of borrowings increased $3.1 million and the cost increased 12 basis points over this period.
Net Interest Income Before Provision for Loan Losses. Net interest income increased by $6.1 million, or 56.2%, to $16.9 million for the three months ended March 31, 2010, from $10.8 million for the three months ended March 31, 2009. The Company's net interest rate spread and margin increased to 3.26% and 3.51% for the three months ended March 31, 2010, from 2.37% and 2.69% for the three months ended March 31, 2009, respectively. On a normalized basis (excluding the impact of the recoveries associated with the problem asset disposals), the Company's net interest rate spread and margin for the three months ended March 31, 2010 were 3.05% and 3.29%, respectively. The Company's net interest rate spread and net interest margin were hindered in both periods due to the impact of nonaccrual loans. The Company's net interest income was $1.2 million lower for both the three months ended March 31, 2010 and 2009 due to the impact of nonaccrual loans. A portion of the 2009 in terest reduction was collected in 2010 in connection with problem loan disposals.
Net interest income increased by $13.2 million, or 41.0%, to $45.5 million for the nine months ended March 31, 2010, from $32.3 million for the nine months ended March 31, 2009. The Company's net interest rate spread and margin increased to 2.92% and 3.19% for the nine months ended March 31, 2010, from 2.40% and 2.82% for the nine months ended March 31, 2009, respectively. On a normalized basis, the Company's net interest rate spread and margin for the nine months ended March 31, 2010 were 2.76% and 3.03%, respectively. The Company's net interest income was reduced by $2.4 million and $2.5 million for the nine months ended March 31, 2010 and 2009, respectively, due to the impact of nonaccrual loans. A portion of the 2009 interest reduction was collected in 2010 in connection with problem loan disposals.
Provision for Loan Losses. The Company recorded provisions for loan losses of $2.5 million for the three months ended March 31, 2010 as compared to $2.4 million for the three months ended March 31, 2009. The Company also recorded provisions for loan losses of $7.6 million for the nine months ended March 31, 2010 as compared to $7.8 million for the nine months ended March 31, 2009. A rollforward of the allowance for loan losses for the nine months ended March 31, 2010 and 2009 is presented below:
| Nine months ended March 31, | |||
| 2010 | 2009 | ||
| (In thousands) | |||
| Balance at beginning of period | $ 20,681 | $ 13,532 | |
| Provisions charged to operations | 7,550 | 7,775 | |
| Recoveries of loans previously charged off | 3 | — | |
| Loans charged off | 3,641 | — | |
| Balance at end of period | $ 24,593 | $ 21,307 | |
| Allowance for loan losses to total loans | 1.70% | 1.69% | |
The delinquency and nonaccrual totals, along with charge-offs and macro economic factors, remain the primary contributors to the current level of provision for loan losses. Loan growth was also a component of the provision for loan losses.
Delinquency information is provided below:
| Delinquency Totals | |||||
| 3/31/2010 | 12/31/2009 | 9/30/2009 | 6/30/2009 | 3/31/2009 | |
| (in thousands) | |||||
| 30 - 59 days past due | $ 6,670 | $ 9,613 | $ 14,318 | $ 4,574 | $ 4,897 |
| 60 - 89 days past due | 4,293 | 1,974 | 1,049 | 17,825 | 1,042 |
| nonaccrual | 41,170 | 51,907 | 52,557 | 52,465 | 52,260 |
| Total | $ 52,133 | $ 63,494 | $ 67,924 | $ 74,864 | $ 58,199 |
Total delinquent loans have decreased by $22.7 million during the nine months ended March 31, 2010 and by $11.4 million over the three months ended March 31, 2010. Substantial reductions in nonaccrual assets were achieved over this past quarter, as compared to the totals from the prior four quarters. Nonaccrual loans decreased $10.7 million, or 20.7%, over the three months ended March 31, 2010. While reductions have been achieved, nonaccrual and total delinquent loan totals remain at elevated levels.
A discussion of the significant components of the nonaccrual loan total at March 31, 2010 follows. These loans have been discussed in prior public releases.
Included in the $4.3 million of loans that are 60-89 days delinquent at March 31, 2010 is a $2.4 million loan. The Company has an executed letter of intention to sell this loan for an amount slightly in excess of our book value.
As discussed in prior releases, the Company has continued its aggressive posture toward delinquent borrowers. The Company realizes that this posture contributes to the high level of delinquencies but believes this is the most prudent path to addressing problem loans.
Other Income. Other income increased by $421,000 to $1.2 million for the three months ended March 31, 2010, from $822,000 for the three months ended March 31, 2009. Results for the quarter ended March 31, 2010, were augmented due to the collection of $146,000 in late charges in connection with problem loan disposals. Results for the quarter ended March 31, 2009 were reduced due to a $225,000 impairment charge and a $12,000 loss on partial sale of a mutual fund holding in the Company's AFS portfolio.
Other income increased by $3.4 million to $4.9 million for the nine months ended March 31, 2010, from $1.5 million for the nine months ended March 31, 2009. Results for the nine months ended March 31, 2009 were reduced due to a $1.8 million impairment charge taken regarding equity securities in the Company's AFS portfolio as well as the impairment charge and loss on sale described in the preceding paragraph. Included in the results for the 2010 period is a $1.0 million gain on the sale of a commercial office property that had been held and operated as a real estate investment. In addition, the 2010 period includes $297,000 of late charges received in connection with problem loan disposals.
Operating Expenses. Operating expenses increased by $762,000, or 11.4%, to $7.4 million for the three months ended March 31, 2010, from $6.7 million for the three months ended March 31, 2009. The Company's efficiency ratio (total operating expenses divided by the sum of net interest income before provision for loan losses plus total other income), on an actual basis, for the 2010 quarter was 41.0%. On a normalized basis, the ratio was 44.7%. Compensation, payroll taxes and fringe benefits increased $413,000, or 9.0%, to $5.0 million for the three months ended March 31, 2010, from $4.6 million for the three months ended March 31, 2009. The increase is primarily due to increases in payroll taxes and health insurance. Federal deposit insurance premiums increased significantly over the period due to an increase in FDIC deposit insurance rates, an increase in insurable deposits and the depletion of a credit against FDIC deposit insurance charges. FDIC deposit insurance premiums increased to $567,000 for the three months ended March 31, 2010, from $46,000 for the three months ended March 31, 2009. Other expense decreased $220,000 to $764,000 for the three months ended March 31, 2010, from $984,000 for the corresponding 2009 period. The decrease was primarily due to $150,000 of reimbursed legal expenses received in conjunction with problem loan dispositions.
Operating expenses increased by $3.3 million, or 17.5%, to $22.4 million for the nine months ended March 31, 2010, from $19.1 million for the nine months ended March 31, 2009. The Company's efficiency ratio for the 2010 period, on an actual and normalized basis, was 44.5% and 48.0%, respectively. Compensation, payroll taxes and fringe benefits increased $1.6 million, or 11.8%, to $15.2 million for the nine months ended March 31, 2010, from $13.6 million for the nine months ended March 31, 2009. The increase is primarily due to increases in payroll taxes and health insurance, as well as increases in compensation. Due to the reasons described in the preceding paragraph, Federal deposit insurance premiums increased significantly over the period. FDIC deposit insurance premiums increased to $1.7 million for the nine months ended March 31, 2010, from $106,000 for the nine months ended March 31, 2009. Other expense decreased $191,000 to $2.4 million for the nine months ended March 31, 201 0, from $2.6 million for the corresponding 2009 period. The decrease was primarily due to $501,000 of reimbursed legal expenses received in conjunction with problem loan dispositions.
Income Tax Expense. Income tax expense for the three months ended March 31, 2010 was $3.2 million, due to pre-tax income of $8.2 million, resulting in an effective tax rate of 38.9%. Income tax expense for the three months ended March 31, 2009 was $1.1 million, due to pre-tax income of $2.6 million, resulting in an effective tax rate of 41.5%. Income tax expense for the nine months ended March 31, 2010, was $8.0 million, due to pre-tax income of $20.4 million, resulting in an effective tax rate of 39.1%. For the nine months ended March 31, 2009, income tax expense was $2.9 million, due to pre-tax income of $6.9 million, resulting in an effective tax rate of 41.4%.
Comparison of Financial Condition at March 31, 2010 and June 30, 2009
Total Assets. Total assets increased $140.7 million, or 7.4%, to $2.05 billion at March 31, 2010, from $1.91 billion at June 30, 2009. The increase was due primarily to the growth of loans and securities AFS.
Cash and Cash Equivalents. Cash and cash equivalents (which includes fed funds and short term investments) decreased $95.7 million to $39.7 million at March 31, 2010, from $135.4 million at June 30, 2009 as excess liquidity was deployed.
Net Loans. Loans, net increased $139.4 million, or 10.9%, to $1.42 billion at March 31, 2010, from $1.28 billion at June 30, 2009. The Company continued its emphasis on loan originations, particularly multifamily and commercial real estate loans. Loan originations totaled $275.8 million and purchases totaled $34.7 million for the nine months ended March 31, 2010.
Securities Available For Sale. Securities AFS increased $166.9 million to $311.4 million at March 31, 2010, from $144.4 million at June 30, 2009. As described under "Total Interest Income," the Company felt this investment option currently presents the best risk/reward profile.
Deposits. Deposits increased $129.5 million, or 11.5%, to $1.26 billion at March 31, 2010, from $1.13 million at June 30, 2009. Strong deposit growth, particularly in core accounts, remains a strategic objective of the Company. The Bank opened its 22nd branch location in Bergenfield (Bergen County), New Jersey, in February.
Stockholders' Equity. Stockholders' equity increased $14.0 million, or 5.8%, to $254.1 million at March 31, 2010, from $240.1 million at June 30, 2009. On March 18, 2009, the Company announced the commencement of a fourth (967,828 shares) 10% repurchase program. As of March 31, 2010, the Company had repurchased a total of 3,669,937 shares at a total cost of $57.1 million and an average cost of $15.57 per share. The remaining shares authorized under the March 18, 2009 repurchase plan total 596,291. The Company has no current intention of repurchasing those shares.
About the Company
Oritani Financial Corp. is the holding company for Oritani Bank, a New Jersey state chartered bank offering a full range of retail and commercial loan and deposit products. Oritani Bank is dedicated to providing exceptional personal service to its individual and business customers. The Bank currently operates its main office and 21 full service branches in the New Jersey Counties of Bergen, Hudson and Passaic. For additional information about Oritani Bank, please visit www.oritani.com.
Forward Looking Statements Certain statements contained herein are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the result of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
| Oritani Financial Corp. and Subsidiaries | ||
| Township of Washington, New Jersey | ||
| Consolidated Balance Sheets | ||
| March 31, 2010 and June 30, 2009 | ||
| (in thousands, except share data) | ||
| Assets | March 31, 2010 | June 30, 2009 |
| (unaudited) | ||
| Cash on hand and in banks | $5,490 | $7,729 |
| Federal funds sold and short term investments | 34,192 | 127,640 |
| Cash and cash equivalents | 39,682 | 135,369 |
| Loans, net | 1,418,034 | 1,278,623 |
| Securities available for sale, at market value | 311,363 | 144,419 |
| Mortgage-backed securities held to maturity, | ||
| market value of $76,683 and $120,381 at | ||
| March 31, 2010 and June 30, 2009, respectively | 76,858 | 118,817 |
| Mortgage-backed securities available for sale, | ||
| at market value | 89,767 | 128,603 |
| Bank Owned Life Insurance (at cash surrender value) | 30,250 | 29,385 |
| Federal Home Loan Bank of New York stock ("FHLB"), at cost | 24,996 | 25,549 |
| Accrued interest receivable | 9,003 | 7,967 |
| Investments in real estate joint ventures, net | 5,815 | 5,767 |
| Real estate held for investment | 1,213 | 1,338 |
| Real estate owned | 434 | — |
| Office properties and equipment, net | 14,888 | 13,777 |
| Other assets | 31,927 | 23,907 |
| Total Assets | $2,054,230 | $1,913,521 |
| Liabilities | ||
| Deposits | $1,257,101 | $1,127,630 |
| Borrowings | 496,637 | 508,991 |
| Advance payments by borrowers for taxes and | ||
| insurance | 10,318 | 8,301 |
| Accrued taxes payable | 6,198 | — |
| Official checks outstanding | 3,507 | 2,699 |
| Other liabilities | 26,386 | 25,802 |
| Total liabilities | 1,800,147 | 1,673,423 |
| Stockholders' Equity | ||
| Common stock, $0.01 par value; 80,000,000 shares authorized; | ||
| 40,552,162 issued at March 31, 2010 and June 30, 2009 | ||
| 37,041,186 outstanding at March 31, 2010 and | ||
| 37,133,684 outstanding at June 30, 2009 | 130 | 130 |
| Additional paid-in capital | 133,349 | 130,375 |
| Unallocated common stock held by the employee stock | ||
| ownership plan | (13,313) | (13,909) |
| Treasury stock, at cost; 3,510,978 shares at March 31, 2010 | ||
| and 3,418,478 shares at June 30, 2009 | (54,649) | (53,418) |
| Retained income | 186,884 | 176,199 |
| Accumulated other comprehensive income, net of tax | 1,682 | 721 |
| Total stockholders' equity | 254,083 | 240,098 |
| Total Liabilities and Stockholders' Equity | $2,054,230 | $1,913,521 |
| Oritani Financial Corp. and Subsidiaries | ||||
| Township of Washington, New Jersey | ||||
| Consolidated Statements of Income | ||||
| Three and Nine Months Ended March 31, 2010 and 2009 | ||||
| . | ||||
| Three Months Ended | Nine months ended | |||
| March 31, | March 31, | |||
| 2010 | 2009 | 2010 | 2009 | |
| unaudited | ||||
| Interest income: | (in thousands, except per share data) | |||
| Interest on mortgage loans | $22,568 | $18,553 | $64,633 | $53,198 |
| Interest on securities held to maturity and dividends on FHLB stock | 360 | 190 | 1,077 | 725 |
| Interest on securities available for sale | 2,204 | 713 | 5,942 | 1,346 |
| Interest on mortgage-backed securities held to maturity | 730 | 1,373 | 2,648 | 4,405 |
| Interest on mortgage-backed securities available for sale | 1,141 | 1,763 | 3,859 | 5,436 |
| Interest on federal funds sold and short term investments | 17 | 16 | 107 | 17 |
| Total interest income | 27,020 | 22,608 | 78,266 | 65,127 |
| Interest expense: | ||||
| Deposits | 5,016 | 6,680 | 17,139 | 17,796 |
| Borrowings | 5,122 | 5,118 | 15,616 | 15,058 |
| Total interest expense | 10,138 | 11,798 | 32,755 | 32,854 |
| Net interest income before provision for loan losses | 16,882 | 10,810 | 45,511 | 32,273 |
| Provision for loan losses | 2,500 | 2,400 | 7,550 | 7,775 |
| Net interest income | 14,382 | 8,410 | 37,961 | 24,498 |
| Other income: | ||||
| Service charges | 435 | 255 | 1,191 | 863 |
| Real estate operations, net | 250 | 280 | 960 | 982 |
| Income from investments in real estate joint ventures | 229 | 196 | 837 | 739 |
| Bank-owned life insurance | 278 | 294 | 866 | 837 |
| Net gain on sale of assets | — | — | 1,043 | — |
| Net gain (loss) on sale of and write down of securities | 12 | (237) | (178) | (2,037) |
| Other income | 39 | 34 | 137 | 106 |
| Total other income | 1,243 | 822 | 4,856 | 1,490 |
| Other expenses: | ||||
| Compensation, payroll taxes and fringe benefits | 4,982 | 4,569 | 15,198 | 13,598 |
| Advertising | 169 | 150 | 498 | 414 |
| Office occupancy and equipment expense | 644 | 643 | 1,748 | 1,566 |
| Data processing service fees | 298 | 270 | 844 | 799 |
| Federal insurance premiums | 567 | 46 | 1,726 | 106 |
| Other expenses | 764 | 984 | 2,404 | 2,595 |
| Total other expenses | 7,424 | 6,662 | 22,418 | 19,078 |
| Income before income tax expense | 8,201 | 2,570 | 20,399 | 6,910 |
| Income tax expense | 3,189 | 1,067 | 7,975 | 2,862 |
| Net income | $5,012 | $1,503 | $12,424 | $4,048 |
| Net income available to common stockholders | $4,870 | $1,472 | $12,098 | $3,967 |
| Basic and fully diluted income per common share | $0.14 | $0.04 | $0.34 | $0.11 |
| Average Balance Sheet and Yield/Rate Information | ||||||||||||||
| For the Three Months Ended (unaudited) | ||||||||||||||
| March 31, 2010 | March 31, 2009 | |||||||||||||
| 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) | $ 1,386,530 | $ 22,568 | 6.51% | $ 1,220,390 | $ 18,553 | 6.08% | ||||||||
| Securities held to maturity (2) | 25,554 | 360 | 5.64% | 24,909 | 190 | 3.05% | ||||||||
| Securities available for sale | 316,342 | 2,204 | 2.79% | 73,025 | 713 | 3.91% | ||||||||
| Mortgage backed securities held to maturity | 79,882 | 730 | 3.66% | 138,493 | 1,373 | 3.97% | ||||||||
| Mortgage backed securities available for sale | 99,080 | 1,141 | 4.61% | 147,157 | 1,763 | 4.79% | ||||||||
| Federal funds sold and short term investments | 18,157 | 17 | 0.37% | 5,107 | 16 | 1.25% | ||||||||
| Total interest-earning assets | 1,925,545 | 27,020 | 5.61% | 1,609,081 | 22,608 | 5.62% | ||||||||
| Non-interest-earning assets | 96,047 | 120,435 | ||||||||||||
| Total assets | $ 2,021,592 | $ 1,729,516 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||
| Savings deposits | 146,296 | 303 | 0.83% | 143,321 | 469 | 1.31% | ||||||||
| Money market | 283,557 | 986 | 1.39% | 108,444 | 659 | 2.43% | ||||||||
| NOW accounts | 109,881 | 198 | 0.72% | 73,047 | 161 | 0.88% | ||||||||
| Time deposits | 683,358 | 3,529 | 2.07% | 620,470 | 5,391 | 3.48% | ||||||||
| Total deposits | 1,223,092 | 5,016 | 1.64% | 945,282 | 6,680 | 2.83% | ||||||||
| Borrowings | 506,182 | 5,122 | 4.05% | 508,368 | 5,118 | 4.03% | ||||||||
| Total interest-bearing liabilities | 1,729,274 | 10,138 | 2.35% | 1,453,650 | 11,798 | 3.25% | ||||||||
| Non-interest-bearing liabilities | 42,191 | 32,709 | ||||||||||||
| Total liabilities | 1,771,465 | 1,486,359 | ||||||||||||
| Stockholders' equity | 250,127 | 243,157 | ||||||||||||
| Total liabilities and stockholders' equity | $ 2,021,592 | $ 1,729,516 | ||||||||||||
| Net interest income | $ 16,882 | $ 10,810 | ||||||||||||
| Net interest rate spread (3) | 3.26% | 2.37% | ||||||||||||
| Net interest-earning assets (4) | $ 196,271 | $ 155,431 | ||||||||||||
| Net interest margin (5) | 3.51% | 2.69% | ||||||||||||
| Average of interest-earning assets to interest-bearing liabilities | 111.35% | 110.69% | ||||||||||||
| (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 Nine Months Ended (unaudited) | ||||||||||||||
| March 31, 2010 | March 31, 2009 | |||||||||||||
| 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) | $ 1,353,417 | $ 64,633 | 6.37% | $ 1,155,755 | $ 53,198 | 6.14% | ||||||||
| Securities held to maturity (2) | 25,526 | 1,077 | 5.63% | 24,733 | 725 | 3.91% | ||||||||
| Securities available for sale | 279,029 | 5,942 | 2.84% | 43,699 | 1,346 | 4.11% | ||||||||
| Mortgage backed securities held to maturity | 95,752 | 2,648 | 3.69% | 148,556 | 4,405 | 3.95% | ||||||||
| Mortgage backed securities available for sale | 111,193 | 3,859 | 4.63% | 148,429 | 5,436 | 4.88% | ||||||||
| Federal funds sold and short term investments | 38,366 | 107 | 0.37% | 1,875 | 7 | 0.50% | ||||||||
| Total interest-earning assets | 1,903,283 | 78,266 | 5.48% | 1,523,047 | 65,117 | 5.70% | ||||||||
| Non-interest-earning assets | 89,607 | 91,501 | ||||||||||||
| Total assets | $ 1,992,890 | $ 1,614,548 | ||||||||||||
| Interest-bearing liabilities: | ||||||||||||||
| Savings deposits | 146,307 | 978 | 0.89% | 144,247 | 1,536 | 1.42% | ||||||||
| Money market | 252,788 | 2,994 | 1.58% | 83,402 | 1,735 | 2.77% | ||||||||
| NOW accounts | 104,490 | 602 | 0.77% | 74,405 | 486 | 0.87% | ||||||||
| Time deposits | 695,816 | 12,565 | 2.41% | 520,303 | 14,039 | 3.60% | ||||||||
| Total deposits | 1,199,401 | 17,139 | 1.91% | 822,357 | 17,796 | 2.89% | ||||||||
| Borrowings | 507,491 | 15,616 | 4.10% | 504,384 | 15,058 | 3.98% | ||||||||
| Total interest-bearing liabilities | 1,706,892 | 32,755 | 2.56% | 1,326,741 | 32,854 | 3.30% | ||||||||
| Non-interest-bearing liabilities | 40,148 | 32,271 | ||||||||||||
| Total liabilities | 1,747,040 | 1,359,012 | ||||||||||||
| Stockholders' equity | 245,850 | 255,536 | ||||||||||||
| Total liabilities and stockholder's equity | $ 1,992,890 | $ 1,614,548 | ||||||||||||
| Net interest income | $ 45,511 | $ 32,263 | ||||||||||||
| Net interest rate spread (3) | 2.92% | 2.40% | ||||||||||||
| Net interest-earning assets (4) | $ 196,391 | $ 196,306 | ||||||||||||
| Net interest margin (5) | 3.19% | 2.82% | ||||||||||||
| Average of interest-earning assets to interest-bearing liabilities | 111.51% | 114.80% | ||||||||||||
| (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. | ||||||||||||||
CONTACT: Oritani Financial Corp.
Kevin J. Lynch, Chairman, President
and Chief Executive Officer
(201) 664-5400