TOWNSHIP OF WASHINGTON, N.J., Jan. 30, 2009 (GLOBE NEWSWIRE) -- Oritani Financial Corp. (the "Company"), the holding company for Oritani Bank (the "Bank"), reported net income of $39,000 for the three months ended December 31, 2008, and $2.5 million, or $0.07 per share, for the six months ended December 31, 2008. This compares to net income of $2.2 million, or $0.06 per share, and $5.2 million, or $0.13 per share, for the corresponding 2007 periods, respectively.
"While there were several positive developments over the quarter, they were overshadowed as some of the negative trends that have been plaguing the industry had a sizeable impact on Oritani" said Kevin J. Lynch, the Company's Chairman, President and CEO. "We have placed problematic loans on nonaccrual status earlier than required and we have been very aggressive with borrowers who have not paid in accordance with the terms of their agreements. I believe this approach will ultimately bring us the highest recovery. The short term impact of the approach, however, has been an increased amount of litigation against borrowers, higher loan loss provisions and decreased income."
Mr. Lynch continued "Hidden behind some of the disappointing numbers on the income statement are some substantial balance sheet changes. Our deposit growth, a management focus, was tremendous. Loan growth sustained its strong pace. Coupled with stock repurchases, we continue to leverage the capital raised from our initial public offering. In addition, we opened two new branch locations during the quarter."
Comparison of Operating Results for the Periods Ended December 31, 2008 and 2007
Net Income. Net income decreased $2.2 million to $39,000 for the quarter ended December 31, 2008, from net income of $2.2 million for the corresponding 2007 quarter. Net income decreased $2.6 million or 50.8%, to $2.5 million for the six months ended December 31, 2008, from net income of $5.2 million for the corresponding 2007 period. Results for the periods ended December 31, 2008 were negatively impacted by increased provision for loan losses and an impairment charge related to equity investments, as well as increased compensation expense, partially offset by increased net interest income.
Total Interest Income. Total interest income increased by $4.1 million or 23.4%, to $21.8 million for the three months ended December 31, 2008, from $17.7 million for the three months ended December 31, 2007. The largest increase occurred in interest on loans, which increased $4.5 million or 33.3%, to $18.0 million for the three months ended December 31, 2008, from $13.5 million for the three months ended December 31, 2007. Over that same period, the average balance of loans increased $349.4 million and the yield on the portfolio decreased 41 basis points. Interest on the investment related captions of securities held to maturity ("HTM"), securities available for sale ("AFS") and mortgage-backed securities ("MBS") HTM decreased by $699,000, or 25.1%, to $2.1 million for the three months ended December 31, 2008, from $2.8 million for the three months ended December 31, 2007. The combined average balances of these portfolios decreased $52.8 million over the period while the combined average yield decreased 26 basis points. The Company has focused on loan originations and its investment activity has been concentrated on the MBS AFS portfolio. Interest on mortgage-backed securities available for sale ("MBS AFS") increased by $585,000 to $1.8 million for the three months ended December 31, 2008, from $1.2 million for the three months ended December 31, 2007. The average balance of MBS AFS increased $56.1 million and the yield on the portfolio decreased 45 basis points over that same period. There was minimal interest income on federal funds sold and short term investments over the three months ended December 31, 2008. This portfolio has been redeployed into loans and MBS AFS. The average balance of this portfolio decreased $18.9 million over the period.
Total interest income increased by $7.8 million, or 22.3%, to $42.5 million for the six months ended December 31, 2008, from $34.8 million for the six months ended December 31, 2007. The largest increase occurred in interest on loans, which increased $8.4 million or 32.0%, to $34.6 million for the six months ended December 31, 2008, from $26.2 million for the six months ended December 31, 2007. Over that same period, the average balance of loans increased $321.1 million and the yield on the portfolio decreased 37 basis points. Interest on the investment related captions of securities held to maturity ("HTM"), securities available for sale ("AFS") and mortgage-backed securities ("MBS") HTM decreased by $1.4 million, or 25.1%, to $4.2 million for the six months ended December 31, 2008, from $5.6 million for the six months ended December 31, 2007. The combined average balances of these portfolios decreased $56.2 million over the period while the combined average yield decreased 21 basis points. The Company has focused on loan originations and its investment activity has been concentrated on the MBS AFS portfolio. Interest on MBS AFS increased by $1.8 million to $3.7 million for the six months ended December 31, 2008, from $1.9 million for the six months ended December 31, 2007. The average balance of MBS AFS increased $80.2 million and the yield on the portfolio decreased 48 basis points over that same period. There was minimal interest income on federal funds sold and short term investments over the six months ended December 31, 2008. This portfolio has been redeployed into loans and MBS AFS. The average balance of this portfolio decreased $39.8 million over the period.
Total Interest Expense. Total interest expense increased by $1.8 million, or 19.8%, to $11.2 million for the three months ended December 31, 2008, from $9.3 million for the three months ended December 31, 2007. Interest expense on deposits decreased by $150,000, or 2.4%, to $6.1 million for the three months ended December 31, 2008, from $6.2 million for the three months ended December 31, 2007. The average balance of deposits increased $129.0 million and the average cost of these funds decreased 65 basis points over the period. Market interest rates allowed the Bank to reprice many maturing time deposits at lower rates, decreasing the cost of funds. The interest rate environment also allowed the Company to decrease interest rates on borrowings while significantly increasing balances. Interest expense on borrowings increased by $2.0 million to $5.1 million for the three months ended December 31, 2008, from $3.1 million for the three months ended December 31, 2007. The average balance of borrowings increased $237.8 million and the cost decreased 50 basis points over the period. The increase in the average balance was necessary to fund asset growth.
Total interest expense increased by $3.0 million, or 16.4%, to $21.1 million for the six months ended December 31, 2008, from $18.1 million for the six months ended December 31, 2007. Interest expense on deposits decreased by $1.4 million, or 11.2%, to $11.1 million for the six months ended December 31, 2008, from $12.5 million for the six months ended December 31, 2007. The average balance of interest bearing deposits increased $72.0 million and the average cost of these funds decreased 71 basis points over this period. Interest expense on borrowings increased by $4.4 million, or 78.7%, to $9.9 million for the six months ended December 31, 2008, from $5.6 million for the six months ended December 31, 2007. The average balance of borrowings increased $252.2 million and the cost decreased 49 basis points over this period. The factors described above for the three month period also affected the six month period.
Net Interest Income Before Provision for Loan Losses. Net interest income increased by $2.3 million, or 27.3%, to $10.7 million for the three months ended December 31, 2008, from $8.4 million for the three months ended December 31, 2007. The Company's net interest rate spread increased to 2.34% for the three months ended December 31, 2008, from 2.02% for the three months ended December 31, 2007. However, the Company's net interest margin decreased to 2.79% for the three months ended December 31, 2008, from 2.80% for the three months ended December 31, 2007. The Company's net interest rate spread and net interest margin were hindered in the 2008 period due to nonaccrual loans. The Company's net interest income was reduced by $913,000 for the three months ended December 31, 2008 due to the impact of nonaccrual loans. On a linked quarter comparison, the Company's net interest rate spread decreased 16 basis points to 2.34% from 2.50% for the three months ended September 30, 2008 and the Company's net interest margin decreased 23 basis points to 2.79% from 3.02% for the three months ended September 30, 2008. The Company's net interest income was reduced by $457,000 for the three months ended September 30, 2008 due to the impact of nonaccrual loans.
Net interest income increased by $4.8 million, or 28.7%, to $21.5 million for the six months ended December 31, 2008, from $16.7 million for the six months ended December 31, 2007. The Company's net interest rate spread increased to 2.42% for the six months ended December 31, 2008, from 2.07% for the six months ended December 31, 2007. The Company's net interest margin increased to 2.90% for the six months ended December 31, 2008, from 2.84% for the six months ended December 31, 2007. The Company's net interest rate spread and net interest margin were hindered in the 2008 period due to nonaccrual loans. The Company's net interest income was reduced by $1.4 million for the six months ended December 31, 2008 due to the impact of nonaccrual loans.
Provision for Loan Losses. The Company recorded provisions for loan losses of $3.5 million for the three months ended December 31, 2008 as compared to $950,000 for the three months ended December 31, 2007. The Company also recorded provisions for loan losses of $5.4 million for the six months ended December 31, 2008 as compared to $1.3 million for the six months ended December 31, 2007. There were no recoveries or charge-offs in any of the periods.
The Company's allowance for loan losses is analyzed quarterly and many factors are considered, including comparison to peer reserve levels. A component of the increased provision in the 2008 period was loan growth. Loans, net increased $197.1 million over the six months ended December 31, 2008, versus growth of $107.3 million over the comparable 2007 period. The delinquency and nonaccrual totals, however, also had a considerable impact on the provision for loan losses.
Delinquency information is provided below:
Delinquency Totals
(in thousands)
12/31/2008 9/30/2008 6/30/2008 3/31/2008 12/31/2007
--------- --------- --------- --------- ---------
30 - 59
days past
due $ 4,979 $ 16,624 $ 25,367 $ 23,531 $ 343
60 - 89
days past
due 5,942 1,381 18 14,034 --
90+ days
past due
and
accruing -- -- -- -- --
Nonaccrual 44,067 25,337 14,211 384 --
------------------------------------------------------
Total $ 54,988 $ 43,342 $ 39,596 $ 37,949 $ 343
======================================================
The level and magnitude of the delinquent loan total have increased since the last quarter. The Company has maintained a very aggressive posture toward delinquent borrowers. The Company has commenced legal action against virtually all borrowers who are more than 45 days delinquent. The Company has refused to extend the maturity date of any construction loan, even if the interest payments are current, unless the borrower agrees to reduce the Company's exposure and agrees to a monetary penalty if the loan is not paid in full on or before the new maturity date. The nonaccrual total at December 31, 2008 includes loans that are less than 90 days delinquent. The Company has classified these loans as nonaccrual as the borrowers are having difficulty making contractual payments and it is considered probable that the loan will become 90 days delinquent.
The nonaccrual total of $44.1 million at December 31, 2008 includes all of the loans ($25.3 million) that were classified as nonaccrual at September 30, 2008. These loans have been discussed in prior public releases. Two of these loans are to one borrower and totaled $17.4 million at September 30, 2008. The loans are secured by a condominium construction project and raw land with all building approvals, both of which are in Northern New Jersey. Oritani has been working with the borrower. The construction of the condominium project is virtually complete and the individual unit sales process has commenced. As of December 31, 2008, the total outstanding on these loans was $18.3 million. These two loans were considered impaired as of December 31, 2008. In accordance with the results of the Company's Statement of Financial Accounting Standards #114 ("FAS 114") impairment analyses, a specific reserve of $4.2 million has been recorded against one of these loans. No reserve was required for the other loan as the loan is considered to be well collateralized. The other significant component of nonaccrual loans at September 30, 2008 was a $7.9 million loan secured by a retail mall in Northern New Jersey. This borrower had two other loans that were not delinquent at September 30, 2008. These loans totaled $10.2 million and are secured by a golf course in Bergen County, New Jersey. All three of these loans were classified as nonaccrual and impaired, in accordance with FAS 114, at December 31, 2008. Oritani is in litigation with this borrower, foreclosure proceedings have commenced and a rent receiver has been placed in control of the operations of these properties. Net cash generated will be forwarded from the rent receiver to Oritani. In accordance with the results of the impairment analyses, no reserve was required for these loans as they were considered to be well collateralized. The other significant portions of the nonaccrual total at December 31, 2008 were three loans to one borrower that totaled $6.6 million. These loans were secured by various warehouse properties in Rockland and Westchester counties, New York. All three of these loans were classified as nonaccrual and impaired, in accordance with FAS 114, at December 31, 2008. Oritani is in litigation with this borrower, foreclosure proceedings have commenced and we are attempting to have a rent receiver appointed by the court. In accordance with the results of the impairment analyses, no reserves were required as the loans were considered to be well collateralized.
Below is a rollforward of the allowance for loan losses for the fiscal year (dollars in thousands):
Quarter Ended
Sept. 30, 2008 Dec. 31, 2008
-------------- -------------
Balance at the beginning of period $ 13,532 $ 15,407
Provision for loan losses 1,875 3,500
Charge-offs -- --
-----------------------------
Balance at the end of period $ 15,407 $18,907
=============================
Allowance as a % of total loans 1.34% 1.54%
=============================
Other Income. Other income decreased by $1.7 million to a net loss of $564,000 for the three months ended December 31, 2008, from income of $1.2 million for the three months ended December 31, 2007. The primary reason for the decrease was a $1.8 million impairment charge taken regarding equity securities in the Company's AFS portfolio. Income on the real estate investment captions of net real estate operations and income from investments in real estate joint ventures increased by $25,000, or 4.3%, to $611,000 for the three months ended December 31, 2008, from $586,000 for the three months ended December 31, 2007. The income reported in these captions is dependent upon the operations of various properties and is subject to fluctuation. Overall, however, joint venture operations have been slightly impacted by increased vacancies and operational costs.
Other income decreased by $1.8 million to $669,000 for the six months ended December 31, 2008, from $2.5 million for the six months ended December 31, 2007. The primary change was again the $1.8 million impairment charge taken regarding equity securities in the Company's AFS portfolio. Income on the real estate investment captions of net real estate operations and income from investments in real estate joint ventures decreased by $117,000, or 8.6%, to $1.2 million for the six months ended December 31, 2008, from $1.4 million for the six months ended December 31, 2007.
Other Expenses. Operating expenses increased $1.6 million, or 32.9% to $6.5 million for the three months ended December 31, 2008, from $4.9 million for the three months ended December 31, 2007. Compensation, payroll taxes and fringe benefits increased $1.1 million over the period. The primary factor in this increase was $834,000 of expense in the 2008 quarter associated with the amortization of the Company's stock benefit plans. There was also an increase of $208,000 directly pertaining to compensation, due to additional staff and merit increases. Insurance, legal, audit and accounting expenses increased $261,000 primarily due to increased legal costs and costs associated with audit and exams, SOX and compliance during the 2008 period.
Operating expenses increased by $3.3 million or 35.8% to $12.4 million for the six months ended December 31, 2008, from $9.1 million for the six months ended December 31, 2007. The increase was again primarily due to compensation, payroll taxes and fringe benefits, which increased $2.4 million, or 37.1%, over the period. This increase was primarily comprised of $1.8 million in costs associated with the Company's stock benefit plans, a $486,000 increase in compensation, and $175,000 pertaining to other retirement/insurance benefits. Insurance, legal, audit and accounting expenses increased $468,000 primarily due to increased costs associated with our audit and exams, SOX and compliance during the 2008 period.
Income Tax Expense. Income tax expense for the three months ended December 31, 2008, was $47,000, due to pre-tax income of $86,000, resulting in an effective tax rate of 54.7%. For the three months ended December 31, 2007, income tax expense was $1.5 million, due to pre-tax income of $3.7 million, resulting in an effective tax rate of 40.7%. Income tax expense for the six months ended December 31, 2008, was $1.8 million, due to pre-tax income of $4.3 million, resulting in an effective tax rate of 41.4%. For the six months ended December 31, 2007, income tax expense was $3.6 million, due to pre-tax income of $8.7 million, resulting in an effective tax rate of 40.94%. The Company's effective tax rate increased during the 2008 periods due to a valuation allowance on future state tax benefits associated with the impairment charges on equity securities.
Comparison of Financial Condition at December 31, 2008 and June 30, 2008
Total Assets. Total assets increased $211.8 million, or 14.7%, to $1.66 billion at December 31, 2008, from $1.44 billion at June 30, 2008. The increase was primarily in loans and was funded through increased deposits and borrowings.
Net Loans. Loans, net increased $196.3 million, or 19.5%, to $1.20 billion at December 31, 2008, from $1.01 billion at June 30, 2008. The Company continued its emphasis on loan originations, particularly multifamily and commercial real estate loans. Loan originations and purchases totaled $266.4 million for the six months ended December 31, 2008 and totaled $477.2 million for the twelve months ended December 31, 2008.
Deposits. Deposits increased $181.0 million, or 25.9%, to $879.9 million at December 31, 2008, from $698.9 million at June 30, 2008. Deposits increased $126.7 million during the quarter ended December 31, 2008. The Bank has implemented several initiatives designed to achieve deposit growth. Two new branch locations have recently been opened. Strong deposit growth remains a strategic objective of the Company.
Borrowings. Borrowings increased $57.8 million, or 13.3%, to $491.5 million at December 31, 2008, from $433.7 million at June 30, 2008. The Company committed to various long term advances from the FHLB-NY over the period.
Stockholders' Equity. Stockholders' equity decreased $31.6 million, or 11.3%, to $247.4 million at December 31, 2008, from $279.0 million at June 30, 2008. On November 21, 2008, the Company announced the completion of its second 10% repurchase program as well as a third (1,061,098 shares) 10% repurchase program. As of December 31, 2008, the Company had repurchased a total of 2,728,100 shares at a total cost of $44.1 million and an average cost of $16.18 per share. Through January 28, 2009, the Company had repurchased a total of 2,988,100 shares at a total cost of $48.2 million and an average cost of $16.16 per share.
About the Company
Oritani Financial Corp. is the holding company for Oritani Bank, a financial intermediary offering a full range of retail and commercial loan and deposit products. Oritani Bank is dedicated to providing exceptional personal service to their individual and business customers. The Bank currently operates its main office and 20 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
December 31, 2008 and June 30, 2008
(in thousands, except share data)
December 31, June 30,
Assets 2008 2008
----------- -----------
(unaudited)
Cash on hand and in banks $ 21,755 $ 7,332
Federal funds sold and short
term investments 46 1,558
----------- -----------
Cash and cash equivalents 21,801 8,890
Loans, net 1,203,392 1,007,077
Securities available for sale,
at market value 36,160 22,285
Mortgage-backed securities held
to maturity, estimated market
value of $143,735 and $162,671
at December 31, 2008 and June 30,
2008, respectively 144,238 163,950
Mortgage-backed securities
available for sale, at
market value 149,332 149,209
Bank Owned Life Insurance
(at cash surrender value) 28,089 26,425
Federal Home Loan Bank of New
York stock, at cost 24,150 21,547
Accrued interest receivable 6,857 5,646
Investments in real estate joint
ventures, net 5,231 5,564
Real estate held for investment 1,350 3,681
Office properties and
equipment, net 13,547 9,287
Other assets 20,971 19,733
----------- -----------
Total Assets $ 1,655,118 $ 1,443,294
=========== ===========
Liabilities
Deposits $ 879,946 $ 698,932
Borrowings 491,495 433,672
Advance payments by borrowers
for taxes and insurance 8,153 7,024
Accrued taxes payable 516 --
Official checks outstanding 6,498 4,143
Other liabilities 21,159 20,548
----------- -----------
Total liabilities 1,407,767 1,164,319
----------- -----------
Stockholders' Equity
Common stock, $0.01 par value;
80,000,000 shares authorized;
40,552,162 issued at December
31, 2008 and June 30, 2008
37,824,062 outstanding at
December 31, 2008 and
40,187,062 outstanding at
June 30, 2008 130 130
Additional paid-in capital 130,669 128,656
Unallocated common stock held
by the employee stock
ownership plan (14,308) (14,704)
Treasury stock, at cost;
2,728,100 shares at December 31,
2008 and 365,100 shares at
June 30, 2008 (44,143) (5,926)
Retained income 173,626 171,160
Accumulated other comprehensive
loss, net of tax 1,377 (341)
----------- -----------
Total stockholders' equity 247,351 278,975
----------- -----------
Total Liabilities and
Stockholders' Equity $ 1,655,118 $ 1,443,294
=========== ===========
Oritani Financial Corp. and Subsidiaries
Township of Washington, New Jersey
Consolidated Statements of Income
Three and Six Months Ended December 31, 2008 and 2007
Three months ended Six months ended
December 31, December 31,
------------------- -------------------
2008 2007 2008 2007
-------- -------- -------- --------
unaudited unaudited
Interest income: (in thousands, except per share data)
Interest on
mortgage loans $ 17,956 $ 13,472 $ 34,645 $ 26,244
Interest on securities
held to maturity 211 314 535 585
Interest on securities
available for sale 404 543 633 1,045
Interest on mortgage-
backed securities
held to maturity 1,475 1,932 3,032 3,979
Interest on mortgage-
backed securities
available for sale 1,816 1,231 3,673 1,862
Interest on federal
funds sold and short
term investments -- 230 1 1,050
-------- -------- -------- --------
Total interest income 21,862 17,722 42,519 34,765
-------- -------- -------- --------
Interest expense:
Deposits 6,077 6,227 11,116 12,521
Borrowings 5,092 3,098 9,940 5,562
-------- -------- -------- --------
Total interest expense 11,169 9,325 21,056 18,083
-------- -------- -------- --------
Net interest income
before provision for
loan losses 10,693 8,397 21,463 16,682
Provision for loan losses 3,500 950 5,375 1,300
-------- -------- -------- --------
Net interest income 7,193 7,447 16,088 15,382
-------- -------- -------- --------
Other income:
Service charges 323 288 608 544
Real estate
operations, net 322 382 702 764
Income from investments
in real estate joint
ventures 289 204 543 598
Bank-owned life insurance 265 263 543 523
Net loss on sales and
write down of
securities (1,800) -- (1,800) --
Other income 36 37 72 74
-------- -------- -------- --------
Total other income (565) 1,174 668 2,503
-------- -------- -------- --------
Operating expenses:
Compensation, payroll
taxes and fringe
benefits 4,678 3,543 9,029 6,584
Advertising 142 125 264 248
Office occupancy and
equipment expense 514 402 923 788
Data processing
service fees 261 278 529 524
Federal insurance
premiums 31 24 60 47
Telephone, Stationary,
Postage and Supplies 148 100 261 199
Insurance, Legal,
Audit and Accounting 519 258 878 410
Other expenses 249 192 472 340
-------- -------- -------- --------
Total operating
expenses 6,542 4,922 12,416 9,140
-------- -------- -------- --------
Income before income
tax expense 86 3,699 4,340 8,745
Income tax expense 47 1,504 1,795 3,577
-------- -------- -------- --------
Net income $ 39 $ 2,195 $ 2,545 $ 5,168
======== ======== ======== ========
Basic and fully diluted
income per common share $ -- $ 0.06 $ 0.07 0.13
======== ======== ======== ========
Oritani Financial Corp. and Subsidiaries
Average Balance Sheet and Yield/Rate Information
For the Three Months Ended (unaudited)
--------------------------------------------------------
December 31, 2008 December 31, 2007
--------------------------- ---------------------------
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
Balance Paid Rate Balance Paid Rate
---------- -------- ------- ---------- -------- -------
(Dollars in thousands)
Interest-
earning
assets:
Loans $1,177,756 $ 17,956 6.10% $ 828,350 $ 13,472 6.51%
Securities
held to
maturity 25,264 211 3.34% 19,003 314 6.61%
Securities
available
for sale 35,884 404 4.50% 41,038 543 5.29%
Mortgage
backed
securities
held to
maturity 148,392 1,475 3.98% 202,320 1,932 3.82%
Mortgage
backed
securities
available
for sale 147,768 1,816 4.92% 91,660 1,231 5.37%
Federal funds
sold and
short term
investments 284 0 0.00% 19,174 230 4.80%
---------- -------- ---------- --------
Total
interest-
earning
assets 1,535,348 21,862 5.70% 1,201,545 17,722 5.90%
-------- --------
Non-interest-
earning
assets 79,430 65,065
---------- ----------
Total assets $1,614,778 $1,266,610
========== ==========
Interest-
bearing
liabilities:
Savings
deposits 142,698 522 1.46% 152,589 649 1.70%
Money market 78,169 602 3.08% 42,638 440 4.13%
NOW accounts 76,488 161 0.84% 72,224 219 1.21%
Time deposits 515,954 4,792 3.72% 416,865 4,919 4.72%
---------- -------- ---------- --------
Total
deposits 813,309 6,077 2.99% 684,316 6,227 3.64%
Borrowings 516,039 5,092 3.95% 278,225 3,098 4.45%
---------- -------- ---------- --------
Total
interest-
bearing
liabilities 1,329,348 11,169 3.36% 962,541 9,325 3.88%
-------- --------
Non-interest-
bearing
liabilities 31,969 25,907
---------- ----------
Total
liabilities 1,361,317 988,448
Stockholders'
equity 253,461 278,162
---------- ----------
Total
liabilities
and
stockholders'
equity 1,614,778 $1,266,610
========== ==========
Net interest
income $ 10,693 $ 8,397
======== ========
Net interest
rate spread
(1) 2.34% 2.02%
======= =======
Net interest-
earning
assets (2) $ 206,000 $ 239,004
========== ==========
Net interest
margin (3) 2.79% 2.80%
======= =======
Average of
interest-
earning
assets to
interest-
bearing
liabilities 1.15X 1.25X
======= =======
(1) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of average
interest-bearing liabilities.
(2) Net interest-earning assets represents total interest-earning
assets less total interest-bearing liabilities. (3) Net interest
margin represents net interest income divided by average total
interest-earning assets.
(3) Net interest margin represents net interest income divided by
average total interest-earning assets.
Oritani Financial Corp. and Subsidiaries
Average Balance Sheet and Yield/Rate Information
For the Six months Ended (unaudited)
--------------------------------------------------------
December 31, 2008 December 31, 2007
--------------------------- ---------------------------
Average Interest Average Average Interest Average
Outstanding Earned/ Yield/ Outstanding Earned/ Yield/
Balance Paid Rate Balance Paid Rate
---------- -------- ------- ---------- -------- -------
(Dollars in thousands)
Interest-
earning
assets:
Loans $1,123,438 $ 34,645 6.17% $ 802,339 $ 26,244 6.54%
Securities
held to
maturity 24,646 535 4.34% 18,092 585 6.47%
Securities
available
for sale 29,035 633 4.36% 39,252 1,045 5.32%
Mortgage
backed
securities
held to
maturity 153,587 3,032 3.95% 206,130 3,979 3.86%
Mortgage
backed
securities
available
for sale 149,065 3,673 4.93% 68,817 1,862 5.41%
Federal funds
sold and
short term
investments 258 1 0.78% 40,064 1,050 5.24%
---------- -------- ---------- --------
Total
interest-
earning
assets 1,480,029 42,519 5.75% 1,174,694 34,765 5.92%
-------- --------
Non-interest-
earning
assets 77,036 66,954
---------- ----------
Total assets $1,557,065 $1,241,648
========== ==========
Interest-
bearing
liabilities:
Savings
deposits 144,709 1,069 1.48% 154,183 1,298 1.68%
Money market 70,882 1,076 3.04% 42,036 877 4.17%
NOW accounts 75,084 323 0.86% 73,321 437 1.19%
Time deposits 470,220 8,648 3.68% 419,391 9,909 4.73%
---------- -------- ---------- --------
Total
deposits 760,895 11,116 2.92% 688,931 12,521 3.63%
Borrowings 502,393 9,940 3.96% 250,203 5,562 4.45%
---------- -------- ---------- --------
Total
interest-
bearing
liabilities 1,263,288 21,056 3.33% 939,134 18,083 3.85%
-------- --------
Non-interest-
bearing
liabilities 32,051 26,660
---------- ----------
Total
liabilities 1,295,339 965,794
Stockholders'
equity 261,726 275,854
---------- ----------
Total
liabilities
and stock-
holder's
equity $1,557,065 $1,241,648
========== ==========
Net interest
income $ 21,463 $ 16,682
======== ========
Net interest
rate spread
(1) 2.42% 2.07%
====== ======
Net interest-
earning
assets (2) $ 216,741 $ 235,560
========== ==========
Net interest
margin (3) 2.90% 2.84%
====== ======
Average of
interest-
earning
assets to
interest-
bearing
liabilities 1.17X 1.25X
====== ======
(1) Net interest rate spread represents the difference between the
yield on average interest-earning assets and the cost of average
interest-bearing liabilities.
(2) Net interest-earning assets represents total interest-earning
assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by
average total interest-earning assets.