Oritani Financial Corp. (the “Company” or “Oritani”) (NASDAQ:ORIT),
the holding company for Oritani Bank (the “Bank”), reported net
income of $12.0 million, or $0.27 per basic and diluted common
share, for the three months ended September 30, 2017. This
compares to net income of $10.6 million, or $0.25 per basic (and
$0.24 diluted) common share, for the corresponding 2016
period.
The Company also reported that its Board of
Directors has declared a $0.175 quarterly cash dividend on the
Company’s common stock. The record date for the dividend will
be November 6, 2017 and the payment date will be November 20,
2017.
“I was certainly pleased with the operating
results for this past quarter for Oritani,” said Kevin J. Lynch,
the Company’s Chairman, President and CEO. “Our net interest
income, spread and margin all expanded and our efficiency ratio was
further improved.” Mr. Lynch continued: “The level of loan
prepayments exceeded our expectations. While this development
aided income, it also directly impacted our ability to increase the
loan portfolio. I anticipate that we will be able to produce
growth in the next quarter.”
Comparison of Operating
Results
Net Income
Net income increased $1.4 million, or 13.1%, to
$12.0 million for the quarter ended September 30, 2017, from $10.6
million for the corresponding 2016 quarter. The primary cause
of the increased net income in 2017 was increased net interest
income of $2.3 million. A portion of the increased net
interest income was due to a $658,000 increase in prepayment
penalty income. Our annualized return on average assets was
1.16% for the quarter ended September 30, 2017, and 1.14% for the
quarter ended September 30, 2016.
Interest Income
The components of interest income changed as follows:
| |
|
|
Three Months Ended September 30, |
Increase / (decrease) |
| |
|
|
2017 |
2016 |
|
Average |
|
| |
|
|
Income |
Yield |
Income |
Yield |
Income |
Balance |
Yield |
| |
|
|
(Dollars in thousands) |
| |
|
|
|
| Interest on
loans |
$ |
35,837 |
4.02 |
% |
$ |
31,973 |
4.06 |
% |
$ |
3,864 |
|
$ |
413,588 |
|
-0.04 |
% |
| Dividends
on FHLB stock |
|
485 |
6.47 |
% |
|
457 |
5.51 |
% |
|
28 |
|
|
(3,178 |
) |
0.96 |
% |
| Interest on
securities AFS |
|
496 |
2.08 |
% |
|
826 |
1.98 |
% |
|
(330 |
) |
|
(71,493 |
) |
0.10 |
% |
| Interest on
securities HTM |
|
1,099 |
1.86 |
% |
|
803 |
1.87 |
% |
|
296 |
|
|
64,595 |
|
-0.01 |
% |
| Interest on federal
funds sold |
|
|
|
|
|
|
|
|
|
| and short term investments |
|
3 |
1.25 |
% |
|
1 |
0.50 |
% |
|
2 |
|
|
151 |
|
0.75 |
% |
| Total interest income |
|
$ |
37,920 |
3.86 |
% |
$ |
34,060 |
3.87 |
% |
$ |
3,860 |
|
$ |
403,663 |
|
-0.01 |
% |
| |
|
|
|
|
|
|
|
|
|
The Company’s primary strategic business
objective remains the organic growth of multifamily and commercial
real estate loans. The average balance of the loan portfolio
increased $413.6 million, or 13.1%, for the three months ended
September 30, 2017 versus the comparable 2016 period. Loan
originations and principal payments totaled $147.5 million and
$153.0 million, respectively, for the three months ended September
30, 2017. There were no loan purchases in the 2017
period. For the comparable 2016 period, loan originations,
principal payments and purchases totaled $152.6 million, $102.6
million and $26.7 million, respectively. The Company has not
had any recent significant changes regarding its underwriting
standards.
On a linked quarter basis (September 30, 2017
versus June 30, 2017), loan balances were particularly impacted by
loan principal payments. The annualized growth rate of the
portfolio was 3.5% when measured based on average balance.
Loan balances contracted $4.8 million when measured on a period end
basis. Management considers these results to be an anomaly
primarily caused by the loan principal payments and anticipates
meaningful loan growth in prospective periods.
The yield on the loan portfolio decreased 4
basis points for the quarter ended September 30, 2017 versus the
comparable 2016 period. On a linked quarter basis (September
30, 2017 versus June 30, 2017), the yield on the loan portfolio
increased 12 basis points. The increased level of prepayment
income impacted these results. Exclusive of prepayment
penalties, the yield on the loan portfolio decreased 10 basis
points versus the quarter ended September 30, 2016 and increased 1
basis point on a linked quarter basis. As discussed in
previous releases, there have been numerous pressures on loan
yields. The impact of many of these pressures has ebbed and,
as noted above, we realized slight expansion recently.
Prepayment penalties totaled $1.3 million, $236,000 and $631,000
for the quarters ended September 30, 2017, June 30, 2017 and
September 30, 2016, respectively. Prepayment penalty
income boosted annualized loan yield by 14, 3 and 8 basis points
for the quarters ended September 30, 2017, June 30, 2017 and
September 30, 2016, respectively.
The average balance of securities available for
sale decreased $71.5 million for the three months ended September
30, 2017 versus the comparable 2016 period, while the average
balance of securities held to maturity increased $64.6 million over
the same period. The Company has been classifying the
majority of new purchases as held to maturity. These balances
were also impacted by purchases and sales.
Interest Expense
The components of interest expense changed as
follows:
| |
|
|
Three Months Ended September 30, |
Increase / (decrease) |
| |
|
|
2017 |
2016 |
|
Average |
|
| |
|
|
Expense |
Cost |
Expense |
Cost |
Expense |
Balance |
Cost |
| |
|
|
(Dollars in thousands) |
| |
|
|
|
| Savings
deposits |
$ |
101 |
0.23 |
% |
$ |
96 |
0.23 |
% |
$ |
5 |
|
$ |
10,260 |
|
- |
% |
| Money
market |
|
2,382 |
1.11 |
% |
|
1,885 |
1.06 |
% |
|
497 |
|
|
140,772 |
|
0.05 |
% |
| Checking
accounts |
|
972 |
0.54 |
% |
|
548 |
0.40 |
% |
|
424 |
|
|
164,148 |
|
0.14 |
% |
| Time
deposits |
|
3,898 |
1.37 |
% |
|
3,210 |
1.32 |
% |
|
688 |
|
|
163,230 |
|
0.05 |
% |
| Total
deposits |
|
7,353 |
1.02 |
% |
|
5,739 |
0.95 |
% |
|
1,614 |
|
|
478,410 |
|
0.07 |
% |
|
Borrowings |
|
2,923 |
1.97 |
% |
|
3,021 |
1.79 |
% |
|
(98 |
) |
|
(81,083 |
) |
0.18 |
% |
| |
Total
interest expense |
|
$ |
10,276 |
1.18 |
% |
$ |
8,760 |
1.14 |
% |
$ |
1,516 |
|
$ |
397,327 |
|
0.04 |
% |
| |
|
|
|
|
|
|
|
|
|
Strong deposit growth remains a strategic
objective of the Company. As detailed above, the average
balance of deposits increased $478.4 million, or 19.9%, for the
quarter ended September 30, 2017 versus the comparable 2016
period. Growth was also strong when measured on a linked
quarter comparison basis though a significant portion of the growth
in this period was due to brokered deposits. The overall cost
of deposits increased 7 basis points for the quarter ended
September 30, 2017 versus the comparable 2016 period, and 4 basis
points on a linked quarter comparison basis. The increased
cost of money market and checking accounts is primarily
attributable to the costs of interest rate swaps that are being
reflected as interest expense on these accounts. The
situation occurred as a result of balance sheet transactions
executed during the quarters ended June 30, 2017, June 30, 2016 and
December 31, 2015. The restructures executed during the
quarters ended June 30, 2016 and December 31, 2015 impacted the
results for both the quarter ended September 30, 2017 and the
quarter ended September 30, 2016. The restructure executed
during the quarter ended June 30, 2017 only impacted the results
for the quarter ended September 30, 2017. The balance sheet
restructures are discussed in the Company’s Form 10-K for the
annual periods ended June 30, 2017 and 2016. The increase in
the cost of time deposits is primarily due to the impact of market
pressures.
The average balance of borrowings decreased
$81.1 million for the three months ended September 30, 2017 versus
the comparable 2016 period, while the cost increased 18 basis
points. The increase in the average balance of deposits
allowed the Company to reduce borrowings while still funding
growth. The cost of borrowings has been impacted by the
increased cost of overnight and short term borrowings. The
cost of borrowings was also affected by the balance sheet
restructures referenced above. On a linked quarter basis, the
average balance of borrowings decreased $117.8 million and the cost
of borrowings decreased 3 basis points. The impact of the
balance sheet restructure on borrowing costs was partially offset
by the increased cost of overnight borrowings as well as the
decreased level of overnight borrowings. Despite the
increased cost of such borrowings, they remain a lower cost of
funding than longer term borrowings.
Net Interest Income Before Provision for Loan
Losses
Net interest income increased by $2.3 million to
$27.6 million for the three months ended September 30, 2017, from
$25.3 million for the three months ended September 30, 2016.
The Company’s net interest income, spread and margin over the
period are detailed in the chart below.
| |
Net Interest Income Before
Provision |
|
Prepayment Penalty Income |
|
Net Interest Income Before
Provision Excluding Prepayment Penalties |
|
Including Prepayment Penalties |
|
Excluding Prepayment Penalties |
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
|
Quarter Ended |
|
|
Spread |
Margin |
Spread |
Margin |
| |
(dollars in thousands) |
|
|
|
|
|
|
| September 30, 2017 |
$ |
27,644 |
|
$ |
1,289 |
|
$ |
26,355 |
|
2.68 |
% |
2.82 |
% |
|
2.55 |
% |
2.68 |
% |
| June 30, 2017 |
|
26,287 |
|
|
236 |
|
|
26,051 |
|
2.54 |
% |
2.68 |
% |
|
2.52 |
% |
2.66 |
% |
| March 31, 2017 |
|
26,795 |
|
|
821 |
|
|
25,974 |
|
2.63 |
% |
2.75 |
% |
|
2.54 |
% |
2.67 |
% |
| December 31, 2016 |
|
26,229 |
|
|
1,199 |
|
|
25,030 |
|
2.72 |
% |
2.86 |
% |
|
2.59 |
% |
2.73 |
% |
| September 30, 2016 |
|
25,300 |
|
|
631 |
|
|
24,669 |
|
2.73 |
% |
2.87 |
% |
|
2.65 |
% |
2.80 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s spread and margin have been
significantly impacted by prepayment penalties. Due to this
situation, the chart above details results with and without the
impact of prepayment penalties. Net interest income before
provision for loan losses, excluding prepayment penalties, is a
non-GAAP financial measure since it excludes a component
(prepayment penalty income) of net interest income and therefore
differs from the most directly comparable measure calculated in
accordance with GAAP. The Company believes the presentation of this
non-GAAP financial measure is useful because it provides
information to assess the underlying performance of the loan
portfolio since prepayment penalty income can be expected to change
as interest rates change. While prepayment penalty income is
expected to continue, fluctuations in the level of prepayment
income are also expected. The level of prepayment income is
generally expected to decrease as external interest rates increase
since borrowers would have less of an incentive to refinance
existing loans. However, the time period when these events
could occur may not align, and the specific behavior of borrowers
is difficult to predict. The level of loan prepayments and
prepayment income increased during the quarter ended September 30,
2017 despite a period of generally increasing interest rates.
The Company’s spread and margin have been under
pressure due to several factors. These factors were discussed
in the Company’s Form 10-K for the annual period ended June 30,
2017, and in other prior public releases. The Company
undertook the balance sheet restructures referenced above, in part,
to counter some of the spread and margin compression.
Recently, the rate of compression has abated and the spread and
margin, absent prepayment penalties, expanded for the quarter ended
September 30, 2017 (versus the quarter ended June 30, 2017).
While expansion was primarily due to the balance sheet restructure
that was executed during the quarter ended June 30, 2017, increased
loan yields have offset some of the compression pressures.
Management does not expect continued expansion of the spread and
margin in the coming quarter. However, the Company’s net
interest income excluding prepayment penalties has been
expanding.
The Company’s net interest income and net
interest rate spread were both negatively impacted in all periods
due to the reversal of accrued interest income on loans delinquent
more than 90 days. The total of such income reversed was
$78,000 for the three months ended September 30, 2017 and $119,000
for the three months ended September 30, 2016.
Provision for Loan Losses
The Company recorded no provision for loan
losses for both the three months ended September 30, 2017 and the
three months ended September 30, 2016. A rollforward of the
allowance for loan losses for the three months ended September 30,
2017 and 2016 is presented below:
| |
Three months ended |
| |
Sept. 30, |
| |
2017 |
|
2016 |
| |
|
|
|
|
|
|
|
| |
(Dollars in thousands) |
| Balance at beginning of
period |
$ |
30,272 |
|
|
$ |
29,951 |
|
| Provisions charged to
operations |
|
- |
|
|
|
- |
|
| Recoveries of loans
previously charged off |
|
152 |
|
|
|
2 |
|
| Less: Loans charged
off |
|
22 |
|
|
|
75 |
|
| Balance at end of
period |
$ |
30,402 |
|
|
$ |
29,878 |
|
| |
|
|
|
| Allowance for loan
losses to total loans |
|
0.84 |
% |
|
|
0.92 |
% |
| Net annualized
(recoveries) charge-offs to average |
|
|
|
| loans
outstanding |
|
(0.02 |
)% |
|
|
0.01 |
% |
Delinquency and non performing asset information
is provided below:
| |
|
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
9/30/2016 |
| |
|
(Dollars in thousands) |
| Delinquency
Totals |
|
|
|
|
|
|
| 30 - 59 days past
due |
|
$ |
987 |
|
$ |
1,374 |
|
$ |
1,266 |
|
$ |
3,133 |
|
$ |
1,686 |
|
| 60 - 89 days past
due |
|
|
1,656 |
|
|
1,571 |
|
|
371 |
|
|
1,196 |
|
|
1,060 |
|
| Nonaccrual |
|
|
9,906 |
|
|
10,223 |
|
|
10,310 |
|
|
10,393 |
|
|
10,537 |
|
| Total |
|
$ |
12,549 |
|
$ |
13,168 |
|
$ |
11,947 |
|
$ |
14,722 |
|
$ |
13,283 |
|
| |
|
|
|
|
|
|
| Non Performing
Asset Totals |
|
|
|
|
|
|
| Nonaccrual loans, per
above |
|
$ |
9,906 |
|
$ |
10,223 |
|
$ |
10,310 |
|
$ |
10,393 |
|
$ |
10,537 |
|
| Real Estate Owned |
|
|
- |
|
|
140 |
|
|
140 |
|
|
266 |
|
|
449 |
|
| Total |
|
$ |
9,906 |
|
$ |
10,363 |
|
$ |
10,450 |
|
$ |
10,659 |
|
$ |
10,986 |
|
| |
|
|
|
|
|
|
| Nonaccrual loans to
total loans |
|
|
0.28 |
% |
|
0.28 |
% |
|
0.29 |
% |
|
0.30 |
% |
|
0.32 |
% |
| Delinquent loans to
total loans |
|
|
0.35 |
% |
|
0.37 |
% |
|
0.33 |
% |
|
0.43 |
% |
|
0.41 |
% |
| Non performing assets
to total assets |
|
|
0.24 |
% |
|
0.25 |
% |
|
0.25 |
% |
|
0.27 |
% |
|
0.29 |
% |
Delinquent loan and non performing asset totals
continue to illustrate minimal credit issues at the Company.
Further, of the $9.9 million in loans classified as nonaccrual at
September 30, 2017, $4.6 million were current.
Other Income
Other income decreased $315,000 to $943,000 for
the three months ended September 30, 2017, from $1.3 million for
the three months ended September 30, 2016. The primary
change was a decrease of $316,000 in net income from investments in
real estate joint ventures. Income from this category
decreased to zero for the three months ended September 30, 2017 as
the Company has disposed of all such
properties.
Other Expenses
Other expenses decreased $784,000 to $9.5
million for the three months ended September 30, 2017, from $10.3
million for the three months ended September 30, 2016.
Compensation, payroll taxes and fringe benefits decreased $802,000
to $6.6 million for the three months ended September 30, 2017, from
$7.4 million for the three months ended September 30, 2016.
The cost for the majority of the stock awards and stock options
granted in conjunction with the Company’s 2011 Equity Plan fully
amortized in August 2016. The 2016 period included a portion
of the amortization expense related to this plan while the 2017
period had significantly less expenses related to the amortization
of this plan. This situation reduced expenses in the 2017
period by $724,000.
Income Tax Expense
Income tax expense for the three months ended
September 30, 2017 was $7.1 million on pre-tax income of $19.1
million, resulting in an effective tax rate of 37.2%.
Income tax expense for the three months ended September 30,
2016 was $5.7 million on pre-tax income of $16.3 million, resulting
in an effective tax rate of 34.9%. The Company’s effective
rate in the 2016 period was positively affected by the vesting of
stock awards and the exercise of nonqualified stock options and
disqualified incentive stock options. There were minimal such
events in the 2017 period. The 2017 period was also
negatively impacted by certain changes in State tax rates.
Comparison of Financial
Condition at September 30, 2017 and June 30,
2017
Total Assets. Total
assets decreased $18.1 million to $4.12 billion at September 30,
2017, from $4.14 billion at June 30, 2017. Asset growth is
typically driven by loan growth. As discussed below, loan
balances decreased this quarter.
Cash and Cash Equivalents. Cash
and cash equivalents (which include fed funds and short term
investments) decreased $2.5 million to $31.1 million at September
30, 2017, from $33.6 million at June 30, 2017.
Net Loans. Loans, net
decreased $4.8 million to $3.56 billion at September 30, 2017, from
$3.57 billion at June 30, 2017. As discussed in “Comparison
of Operating Results, Net Interest Income,” net originations were
fully offset by loan principal payments resulting in a slight
decrease for the quarter. Management considers these results
to be an anomaly and expects to continue the execution of its
strategic business objective of increasing multifamily and
commercial real estate loan balances.
Securities available for
sale. Securities AFS decreased $7.6 million to $90.3
million at September 30, 2017, from $97.9 million at June 30,
2017. The decrease is primarily due to principal
payments.
Securities held to
maturity. Securities HTM decreased $861,000 to
$238.8 million at September 30, 2017, from $239.6 million at June
30, 2017. The decrease is primarily due to principal payments
partially offset by purchases totaling $10.6 million.
Federal Home Loan Bank of New York
(“FHLB”) stock. FHLB stock decreased $4.7 million to
$27.8 million at September 30, 2017, from $32.5 million at June 30,
2017. FHLB stock holdings are required depending on several
factors, including the level of borrowings with the FHLB. As
FHLB borrowings decreased over the quarter, excess FHLB stock was
redeemed.
Deposits. Deposits
increased $63.6 million to $2.92 billion at September 30, 2017,
from $2.86 billion at June 30, 2017. See “Interest Expense”
for discussion regarding deposit balances.
Borrowings. Borrowings
decreased $95.8 million to $546.3 million at September 30, 2017,
from $642.1 million at June 30, 2017. See “Interest Expense”
for discussion regarding borrowing amounts.
Stockholders’ Equity.
Stockholders’ equity increased $7.2 million to $566.4 million at
September 30, 2017, from $559.2 million at June 30, 2017. The
increase was primarily due to net income and the release of
treasury shares in conjunction with stock option exercises,
partially offset by dividends. Based on our September 30,
2017 closing price of $16.80 per share, the Company stock was
trading at 137.0% of book value.
About the CompanyOritani
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 25 full service branches in the New
Jersey Counties of Bergen, Hudson, Essex and Passaic. For
additional information about Oritani Bank, please visit
www.oritani.com.
Forward Looking
StatementsCertain 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 those risk factors disclosed in the Company’s Annual
Report on Form 10-K for the year ended June 30, 2017 and the
following: 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, 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.
For further information contact:Kevin J. LynchChairman,
President and Chief Executive OfficerOritani Financial Corp.(201)
664-5400
| Oritani Financial Corp. and Subsidiaries |
| Consolidated Balance Sheets |
| (In thousands, except share data) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Sept. 30, |
|
June 30, |
| Assets |
|
2017 |
|
2017 |
| |
|
|
|
(unaudited) |
|
(audited) |
| Cash on
hand and in banks |
|
$ |
30,701 |
|
|
$ |
33,252 |
|
| Federal
funds sold and short term investments |
|
|
403 |
|
|
|
326 |
|
| |
|
Cash and
cash equivalents |
|
|
31,104 |
|
|
|
33,578 |
|
| |
|
|
|
|
|
|
|
|
| Loans,
net |
|
|
|
3,561,902 |
|
|
|
3,566,703 |
|
| Securities
available for sale, at fair value |
|
|
90,348 |
|
|
|
97,930 |
|
| Securities
held to maturity, |
|
|
|
|
|
|
| |
fair value
of $236,711 and $237,204, respectively. |
|
|
238,770 |
|
|
|
239,631 |
|
| Bank Owned
Life Insurance (at cash surrender value) |
|
|
96,592 |
|
|
|
95,946 |
|
| Federal
Home Loan Bank of New York stock ("FHLB"), at cost |
|
|
27,813 |
|
|
|
32,504 |
|
| Accrued
interest receivable |
|
|
11,371 |
|
|
|
10,620 |
|
| Real estate
owned |
|
|
— |
|
|
|
140 |
|
| Office
properties and equipment, net |
|
|
13,713 |
|
|
|
13,909 |
|
| Deferred
tax assets |
|
|
38,888 |
|
|
|
37,693 |
|
| Other
assets |
|
|
9,107 |
|
|
|
9,030 |
|
| |
|
Total
Assets |
|
$ |
4,119,608 |
|
|
$ |
4,137,684 |
|
| |
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
Deposits |
|
|
$ |
2,920,046 |
|
|
$ |
2,856,478 |
|
|
Borrowings |
|
|
|
546,277 |
|
|
|
642,059 |
|
| Advance
payments by borrowers for taxes and |
|
|
|
|
|
|
| |
insurance |
|
|
23,383 |
|
|
|
23,496 |
|
| Official
checks outstanding |
|
|
3,407 |
|
|
|
4,423 |
|
| Other
liabilities |
|
|
60,102 |
|
|
|
52,005 |
|
| |
|
Total
liabilities |
|
|
3,553,215 |
|
|
|
3,578,461 |
|
| |
|
|
|
|
|
|
|
|
| Stockholders' Equity |
|
|
|
|
|
|
| Common
stock, $0.01 par value; 150,000,000 shares authorized; |
|
|
|
|
|
|
| |
56,245,065
shares issued; 46,176,504 shares outstanding at |
|
|
|
|
|
|
|
| |
September
30, 2017 and 45,992,366 shares outstanding at |
|
|
|
|
|
|
| |
June 30,
2017. |
|
|
562 |
|
|
|
562 |
|
| Additional
paid-in capital |
|
|
512,693 |
|
|
|
512,337 |
|
| Unallocated
common stock held by the employee stock |
|
|
|
|
|
|
| |
ownership
plan |
|
|
(18,061 |
) |
|
|
(18,407 |
) |
| Non-vested
restricted stock awards |
|
|
(347 |
) |
|
|
(458 |
) |
| Treasury
stock, at cost; 10,068,561 shares at September 30, 2017 and |
|
|
|
|
|
|
| |
10,252,699
shares at June 30, 2017. |
|
|
(134,061 |
) |
|
|
(136,517 |
) |
| Retained
earnings |
|
|
202,196 |
|
|
|
198,186 |
|
| Accumulated
other comprehensive income, net of tax |
|
|
3,411 |
|
|
|
3,520 |
|
| |
|
Total
stockholders' equity |
|
|
566,393 |
|
|
|
559,223 |
|
| Total
Liabilities and Stockholders' Equity |
|
$ |
4,119,608 |
|
|
$ |
4,137,684 |
|
| |
|
|
|
|
|
|
|
|
| See
accompanying notes to unaudited consolidated financial
statements. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Oritani Financial Corp. and
Subsidiaries |
| Consolidated Statements of Income |
| Three Months Ended September 30, 2017 and 2016 |
| (In thousands, except share data) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
Three months ended |
|
| |
|
|
|
September 30, |
|
| |
|
|
|
2017 |
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
unaudited |
|
| Interest
income: |
|
|
|
|
|
|
|
| |
Loans |
|
$ |
35,837 |
|
|
$ |
31,973 |
|
| |
Dividends on FHLB stock |
|
485 |
|
|
|
457 |
|
| |
Securities available for sale |
|
496 |
|
|
|
826 |
|
| |
Securities held to maturity |
|
1,099 |
|
|
|
803 |
|
| |
Federal funds sold and short term investments |
|
3 |
|
|
|
1 |
|
| |
|
Total interest income |
|
37,920 |
|
|
|
34,060 |
|
| |
|
|
|
|
|
|
|
|
|
| Interest
expense: |
|
|
|
|
|
|
|
| |
Deposits |
|
|
7,353 |
|
|
|
5,739 |
|
| |
Borrowings |
|
|
2,923 |
|
|
|
3,021 |
|
| |
|
Total interest expense |
|
10,276 |
|
|
|
8,760 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Net interest income before provision for loan losses |
|
27,644 |
|
|
|
25,300 |
|
| |
|
|
|
|
|
|
|
|
|
| Provision
for loan losses |
|
— |
|
|
|
— |
|
| |
|
Net interest income after provision for loan losses |
|
27,644 |
|
|
|
25,300 |
|
| |
|
|
|
|
|
|
|
|
|
| Other
income: |
|
|
|
|
|
|
|
| |
Service charges |
|
|
228 |
|
|
|
182 |
|
| |
Net income from investments in real estate joint ventures |
— |
|
|
|
316 |
|
| |
Bank-owned life insurance |
|
646 |
|
|
|
679 |
|
| |
Net loss on sale of assets |
|
(2 |
) |
|
|
— |
|
| |
Other income |
|
|
71 |
|
|
|
81 |
|
| |
|
Total other income |
|
943 |
|
|
|
1,258 |
|
| |
|
|
|
|
|
|
|
|
|
| Other
expenses: |
|
|
|
|
|
|
|
| |
Compensation, payroll taxes and fringe benefits |
|
6,556 |
|
|
|
7,358 |
|
| |
Advertising |
|
|
142 |
|
|
|
90 |
|
| |
Office occupancy and equipment expense |
|
749 |
|
|
|
800 |
|
| |
Data processing service fees |
|
544 |
|
|
|
544 |
|
| |
Federal insurance premiums |
|
300 |
|
|
|
450 |
|
| |
Real estate owned operations |
|
1 |
|
|
|
55 |
|
| |
Other expenses |
|
|
1,192 |
|
|
|
971 |
|
| |
|
Total other expenses |
|
9,484 |
|
|
|
10,268 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
Income before income tax expense |
|
19,103 |
|
|
|
16,290 |
|
| Income
tax expense |
|
|
7,107 |
|
|
|
5,679 |
|
| |
|
Net
income |
|
$ |
11,996 |
|
|
$ |
10,611 |
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Income per
basic common share |
$ |
0.27 |
|
|
$ |
0.25 |
|
| Income per
diluted common share |
$ |
0.27 |
|
|
$ |
0.24 |
|
| |
|
|
|
|
|
|
|
|
|
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