Oritani Financial Corp. (the “Company” or “Oritani”) (NASDAQ:
ORIT), the holding company for Oritani Bank (the “Bank”), reported
net income of $13.4 million, or $0.30 per basic and diluted common
share, for the three months ended September 30, 2018. This
compares to net income of $12.0 million, or $0.27 per basic and
diluted common share, for the corresponding 2017 period.
The Company also reported that its Board of
Directors has declared a $0.25 quarterly cash dividend on the
Company’s common stock. The record date for the dividend will
be November 9, 2018 and the payment date will be November 19,
2018.
“We had net income of $13.4 million or 30 cents
per share for the quarter, which included a $2.0 million reversal
of our loan loss provision,” said Kevin J. Lynch, the Company’s
Chairman, President and CEO. “We also completed a substantial
portion of our BSA/AML issues.” Mr. Lynch continued: “Deposits
increased by $8.9 million and loans net decreased by $38.9
million. The loan decrease was primarily as a result of
principal payments of over $123 million during the quarter. The CRE
market has grown beyond highly competitive to a point where
transactions are being completed by our competitors at ever thinner
spreads as the yield curve have flattened. We have seen
numerous instances of higher loan to value ratios and extended
interest only periods, which we choose not to match. We will
continue to pursue well structured transactions within our
conservative underwriting standards.”
Comparison of Operating
Results
Net Income
Net income increased $1.4 million, or 11.7%, to
$13.4 million for the quarter ended September 30, 2018, from $12.0
million for the corresponding 2017 quarter. The primary
causes of the increased net income in 2018 were a reversal of
provision for loan losses of $2.0 million and reduced income tax
expense, partially offset by increased non-interest expenses.
Our annualized return on average assets was 1.29% for the quarter
ended September 30, 2018, and 1.16% for the quarter ended September
30, 2017.
Interest Income
The components of interest income changed as follows:
| |
|
Three Months Ended September 30, |
Increase / (decrease) |
| |
|
2018 |
|
2017 |
|
|
Average |
|
|
| |
|
Income |
|
Yield |
|
Income |
|
Yield |
Income |
|
Balance |
|
Yield |
| Interest Income
on: |
|
(Dollars in thousands) |
| Loans |
|
$ |
35,952 |
|
4.08 |
% |
|
$ |
35,837 |
|
4.02 |
% |
$ |
115 |
|
$ |
(38,017 |
) |
|
0.06 |
% |
| Dividends on FHLB
stock |
|
|
448 |
|
6.48 |
% |
|
|
485 |
|
6.47 |
% |
|
(37 |
) |
|
(2,341 |
) |
|
0.01 |
% |
| Equity securities |
|
|
10 |
|
2.62 |
% |
|
|
12 |
|
3.22 |
% |
|
(2 |
) |
|
36 |
|
|
(0.60 |
)% |
| Debt securities
AFS |
|
|
240 |
|
2.29 |
% |
|
|
484 |
|
2.06 |
% |
|
(244 |
) |
|
(51,895 |
) |
|
0.23 |
% |
| Debt securities
HTM |
|
|
1,929 |
|
2.31 |
% |
|
|
1,099 |
|
1.86 |
% |
|
830 |
|
|
97,490 |
|
|
0.45 |
% |
| Federal funds sold
and |
|
|
|
|
|
|
|
|
|
|
|
|
|
| short
term investments |
|
|
22 |
|
2.03 |
% |
|
|
3 |
|
1.25 |
% |
|
19 |
|
|
3,380 |
|
|
0.78 |
% |
| Total
interest income |
|
$ |
38,601 |
|
3.92 |
% |
|
$ |
37,920 |
|
3.86 |
% |
$ |
681 |
|
$ |
8,653 |
|
|
0.06 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s primary strategic business
objective remains the organic growth of multifamily and commercial
real estate loans. However, the market to originate such
loans has been particularly challenging during the past year.
Competitors, including non-bank competitors, are providing
financing to prospective borrowers at rates and terms that are not
considered palatable by the Company. In addition, many
borrowers refinanced loans they had with the Company to obtain
financing that the borrowers considered more advantageous.
Consequently, the Company has experienced decreasing loan balances
throughout calendar 2018. The Company also realized robust
prepayment fee income in conjunction with the decreased
balances. Given the overall increase in the current interest
rate environment, the Company has now slightly adjusted its pricing
strategies in order to potentially generate increased
originations. However, the Company remains unwilling to lower
its underwriting standards or solicit loans with potential
excessive interest rate risk.
The average balance of the loan portfolio
decreased $38.0 million for the three months ended September 30,
2018 versus the comparable 2017 period. Loan originations and
principal payments totaled $82.0 million and $123.5 million,
respectively, for the three months ended September 30, 2018.
For the comparable 2017 period, loan originations and principal
payments totaled $147.5 million and $153.0 million,
respectively. There were no loan purchases in either
period. On a linked quarter basis (September 30, 2018 versus
June 30, 2018), the average balance of the loan portfolio decreased
$30.7 million.
The yield on the loan portfolio increased 6
basis points for the quarter ended September 30, 2018 versus the
comparable 2017 period. On a linked quarter basis (September
30, 2018 versus June 30, 2018), the yield on the loan portfolio
decreased 7 basis points. The level of prepayment income
impacted these results. Exclusive of prepayment penalties,
the yield on the loan portfolio increased 7 basis points versus the
quarter ended September 30, 2017 and was flat versus the June 30,
2018 quarter. Prepayment penalties totaled $1.1 million, $1.8
million and $1.3 million for the quarters ended September 30, 2018,
June 30, 2018 and September 30, 2017, respectively. The
average balance of debt securities available for sale decreased
$51.9 million for the three months ended September 30, 2018 versus
the comparable 2017 period, while the average balance of debt
securities held to maturity increased $97.5 million over the same
period. The Company has been classifying the majority of new
purchases as held to maturity. The available for sale balance
was also impacted by sales of $29.5 million that occurred over the
12 months ended September 30, 2018.
Interest Expense
The components of interest expense changed as
follows:
|
|
|
|
Three Months Ended
September 30, |
Increase /
(decrease) |
|
|
|
|
2018 |
2017 |
|
Average |
|
|
|
|
|
Expense |
Cost |
Expense |
Cost |
Expense |
Balance |
Cost |
| Interest Expense on: |
|
(Dollars in thousands) |
| Savings deposits |
|
$ |
190 |
0.38 |
% |
|
$ |
101 |
0.23 |
% |
|
$ |
89 |
|
|
$ |
23,077 |
|
|
0.15 |
% |
| Money market |
|
|
2,057 |
1.09 |
% |
|
|
2,382 |
1.11 |
% |
|
|
(325 |
) |
|
|
(98,680 |
) |
|
(0.02 |
)% |
| Checking accounts |
|
|
1,659 |
0.92 |
% |
|
|
972 |
0.54 |
% |
|
|
687 |
|
|
|
8,370 |
|
|
0.38 |
% |
| Time deposits |
|
|
5,131 |
1.67 |
% |
|
|
3,898 |
1.37 |
% |
|
|
1,233 |
|
|
|
94,176 |
|
|
0.30 |
% |
| Total deposits |
|
|
9,037 |
1.24 |
% |
|
|
7,353 |
1.02 |
% |
|
|
1,684 |
|
|
|
26,943 |
|
|
0.22 |
% |
| Borrowings |
|
|
3,269 |
2.29 |
% |
|
|
2,923 |
1.97 |
% |
|
|
346 |
|
|
|
(21,993 |
) |
|
0.32 |
% |
| |
Total interest
expense |
|
$ |
12,306 |
1.41 |
% |
|
$ |
10,276 |
1.18 |
% |
|
$ |
2,030 |
|
|
$ |
4,950 |
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
Strong deposit growth remains a strategic
objective of the Company, however, growth has been particularly
difficult to attain in the current environment. Many
competitors have offered desirable deposit “specials” to
customers. In addition, the Company’s municipal deposit
accounts have been targeted by competitors. The Company has
been able to maintain the vast majority of their deposits to date,
but has needed to increase the interest rates on the accounts in
order to preserve them. This action specifically impacted the
cost of checking accounts. As a result of these
circumstances, deposit growth has been muted. As detailed
above, the average balance of deposits increased $26.9 million for
the quarter ended September 30, 2018 versus the comparable 2017
period. On a linked quarter comparison (September 30, 2018
versus June 30, 2018), the average balance of deposits decreased
$39.6 million. The overall cost of deposits increased 22
basis points for the quarter ended September 30, 2018 versus the
comparable 2017 period, and 7 basis points on a linked quarter
comparison basis. The increased costs are primarily due to
the impact of market pressures.
The average balance of borrowings decreased
$22.0 million for the three months ended September 30, 2018 versus
the comparable 2017 period, while the cost increased 32 basis
points. The increase in the average balance of deposits and
contraction of loan balances allowed the Company to reduce
borrowings. The cost of borrowings has been impacted by the
overall increase in interest rates, particularly overnight and
short term borrowings.
Net Interest Income Before Provision for Loan
Losses
Net interest income decreased by $1.3 million to
$26.3 million for the three months ended September 30, 2018, from
$27.6 million for the three months ended September 30, 2017.
The Company’s net interest income, spread and margin over the
period are detailed in the chart below.
| |
|
|
|
Net Interest Income Before Provision Excluding Prepayment
Penalties |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net
Interest |
Prepayment |
|
Including Prepayment Penalties |
Excluding Prepayment Penalties |
|
|
|
Income Before |
Penalty |
|
|
Quarter Ended |
|
Provision |
Income |
|
Spread |
Margin |
Spread |
Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
| September 30, 2018 |
|
$
26,295 |
$
1,154 |
$
25,141 |
|
2.51% |
2.67% |
2.40% |
2.55% |
| June 30, 2018 |
|
27,721 |
1,836 |
25,885 |
|
2.65% |
2.81% |
2.47% |
2.63% |
| March 31, 2018 |
|
26,953 |
553 |
26,400 |
|
2.60% |
2.74% |
2.54% |
2.68% |
| December 31, 2017 |
|
27,608 |
1,638 |
25,970 |
|
2.67% |
2.81% |
2.50% |
2.64% |
| September 30, 2017 |
|
27,644 |
1,289 |
26,355 |
|
2.68% |
2.82% |
2.55% |
2.68% |
| |
|
|
|
|
|
|
|
|
|
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 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. Borrowers can be driven to prepay their loans
based on factors other than interest rates. The level of loan
prepayments and prepayment income experienced by the Company has
been elevated (versus historical levels) despite a period of
generally increasing interest rates.
The Company’s spread and margin have been under
pressure due to several factors, including: a flattening
treasury yield curve, modifications of loans within the existing
loan portfolio; prepayments of higher yielding loans and
investments, and increased funding costs. The Company executed a
previously disclosed balance sheet restructuring partially to
counter a portion of the spread and margin compression resulting
from these factors. While spread and margin have been under
pressure for an extended period, the competitive market for
deposits increased substantially over the three month period ended
September 30, 2018. The Company increased their rates on certain
deposit accounts, primarily in response to this situation.
The full ramifications of these increases will impact future
periods.
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
$73,000 for the three months ended September 30, 2018 and $78,000
for the three months ended September 30, 2017.
Provision for Loan Losses
The Company recorded a reversal of provision for
loan losses of $2.0 million for the three months ended September
30, 2018 and no provision for loan losses for the three months
ended September 30, 2017. A rollforward of the allowance for
loan losses for the three months ended September 30, 2018 and 2017
is presented below:
| |
Three months ended |
| |
September 30, |
| |
2018 |
|
2017 |
|
|
|
|
|
| |
(Dollars in thousands) |
| Balance at beginning of
period |
$30,562 |
|
|
$30,272 |
|
| Reversal of provision
for loan losses |
(2,000 |
) |
|
- |
|
| Recoveries of loans
previously charged off |
3 |
|
|
152 |
|
| Loans charged off |
- |
|
|
22 |
|
| Balance at end of
period |
$28,565 |
|
|
$30,402 |
|
| |
|
|
|
| Allowance for loan
losses to total loans |
0.81 |
% |
|
0.84 |
% |
| Net charge-offs
(annualized) to average |
|
|
|
| loans
outstanding |
- |
% |
|
(0.02 |
)% |
| |
|
|
|
|
|
Delinquency and non-performing asset information
is provided below:
| |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
| |
Dollars in thousands |
| Delinquency
Totals |
|
|
|
|
|
| 30 - 59 days past
due |
$ |
15,261 |
|
$ |
5,253 |
|
$ |
9,772 |
|
$ |
3,166 |
|
$ |
987 |
|
| 60 - 89 days past
due |
|
356 |
|
|
171 |
|
|
472 |
|
|
142 |
|
|
1,656 |
|
| Nonaccrual |
|
9,083 |
|
|
7,877 |
|
|
11,887 |
|
|
14,489 |
|
|
9,906 |
|
| Total |
$ |
24,700 |
|
$ |
13,301 |
|
$ |
22,131 |
|
$ |
17,797 |
|
$ |
12,549 |
|
| |
|
|
|
|
|
| Non-Performing
Asset Totals |
|
|
|
|
|
| Nonaccrual loans, per
above |
$ |
9,083 |
|
$ |
7,877 |
|
$ |
11,887 |
|
$ |
14,489 |
|
$ |
9,906 |
|
| Real Estate Owned |
|
1,564 |
|
|
1,564 |
|
|
636 |
|
|
- |
|
|
- |
|
| Total |
$ |
10,647 |
|
$ |
9,441 |
|
$ |
12,523 |
|
$ |
14,489 |
|
$ |
9,906 |
|
| |
|
|
|
|
|
| Nonaccrual loans to
total loans |
|
0.26 |
% |
|
0.22 |
% |
|
0.33 |
% |
|
0.40 |
% |
|
0.28 |
% |
| Delinquent loans to
total loans |
|
0.70 |
% |
|
0.37 |
% |
|
0.61 |
% |
|
0.49 |
% |
|
0.35 |
% |
| Non-performing assets
to total assets |
|
0.26 |
% |
|
0.23 |
% |
|
0.30 |
% |
|
0.35 |
% |
|
0.24 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The $2.0 million reversal of provision for loan
losses was due primarily to loan portfolio contraction and reduced
qualitative factors within the allowance calculation as determined
as part of our quarterly reassessment. The qualitative factor
adjustment was also partially attributable to portfolio
contraction. Overall, non-performing asset totals and minimal
charge-offs continue to illustrate minimal credit issues at the
Company. However, during the quarter, the total of loans
30-59 days past due increased significantly. This increase is
primarily due to one larger loan that has been a slow payer but is
well collateralized and does not currently present any valuation
concerns.
Non-Interest Income
Non-interest income decreased $150,000 to
$821,000 for the three months ended September 30, 2018, from
$971,000 for the three months ended September 30, 2017.
The primary change was an $119,000 decrease in value of equity
securities held by the Company.
Non-Interest Expense
Non-interest expense increased $1.1 million to
$10.6 million for the three months ended September 30, 2018, from
$9.5 million for the three months ended September 30, 2017.
The primary change was an increase in other expenses, which
increased $1.1 million to $2.3 million for the three months ended
September 30, 2018, from $1.2 million for the three months ended
September 30, 2017. As initially disclosed in the
Company’s Form 10-Q for the quarterly period ended December 31,
2017, the Company entered into an informal agreement with
regulators regarding Bank Secrecy Act and Anti-Money Laundering
compliance matters. The Company originally estimated that
total costs associated with the remediation of these matters will
not exceed approximately $2.0 million. However, the costs for
the three month period ended September 30, 2018 exceeded
expectations. The Company has incurred expenses associated
with the remediation of these matters of $1.3 million for the year
ended June 30, 2018 and $1.1 million for the three months ended
September 30, 2018. The Company believes that significant
progress has been made regarding the remediation of these matters
and that the majority of the necessary costs have been expended and
expensed. The Company currently estimates that total
remaining costs associated with the matter will not exceed $1.0
million.
Income Tax Expense
Income tax expense for the three months ended
September 30, 2018 was $5.1 million on pre-tax income of $18.5
million, resulting in an effective tax rate of 27.5%.
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%. The decrease in
effective tax rate in the 2018 period was the result of the
enactment of the Tax Cuts and Jobs Act on December 22, 2017 which
lowered the federal corporate income tax rate to 21% beginning in
2018 from a maximum rate of 35% in 2017. The benefit of the
lower federal tax rate in 2018 was partially offset by the impact
of New Jersey (“NJ”) tax legislation enacted on July 1, 2018 that
imposes a temporary surtax of 2.5% for tax years beginning on or
after January 1, 2018 through December 31, 2019, and 1.5% for tax
years beginning on or after January 1, 2020 through December 31,
2021. The legislation also requires mandatory unitary
combined filing for members of an affiliated group for tax years
beginning on or after January 1, 2019. The Company reports
earnings on a fiscal year basis and the increased income tax
implications of the NJ legislation are partially recognized by the
Company ratably over the course of the fiscal year ending June 30,
2019. The full impact of the legislation will be recognized
in the fiscal year ending June 30, 2020. The Company’s
estimated effective tax rate for the fiscal year ending June 30,
2019 is 25.0%. The Company’s estimated effective tax rate is
expected to increase subsequent to the fiscal year ending June 30,
2019. The legislation required a revaluation of our deferred
tax assets/liabilities based on the rates at which they are
expected to reverse in the future. The revaluation of the
Company's deferred tax balances resulted in a one-time non-cash
charge of $477,000 which was included in income tax expense for the
three months ended September 30, 2018.
Comparison of Financial
Condition at September 30, 2018 and June 30,
2018
Total Assets. Total
assets decreased $56.7 million to $4.11 billion at September 30,
2018, from $4.17 billion at June 30, 2018. The primary
contributor to the decreased asset level was the contraction in
loan balances.
Cash and Cash Equivalents. Cash
and cash equivalents (which include fed funds and short term
investments) decreased $6.3 million to $28.6 million at September
30, 2018, from $34.8 million at June 30, 2018.
Net Loans. Loans, net
decreased $38.9 million to $3.50 billion at September 30, 2018,
from $3.54 billion at June 30, 2018. As discussed in
“Comparison of Operating Results, Net Interest Income,” our
origination volume is below historical levels and loan principal
payments remain elevated. While management has slightly
adjusted loan pricing in order to increase originations, it
currently appears likely there will be a further contraction of
loan balances at December 31, 2018.
Debt securities available for
sale. Debt securities AFS decreased $3.5 million to
$39.7 million at September 30, 2018, from $43.1 million at June 30,
2018. The decrease is primarily due to principal
payments.
Debt securities held to
maturity. Debt securities HTM decreased $7.8 million
to $327.6 million at September 30, 2018, from $335.4 million at
June 30, 2018. The decrease is primarily due to principal
payments.
Federal Home Loan Bank of New York
(“FHLB”) stock. FHLB stock decreased $3.1 million to
$27.3 million at September 30, 2018, from $30.4 million at June 30,
2018. 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
balances were relatively stable at $2.92 billion, increasing $8.9
million over the quarter ended September 30, 2018. See
“Interest Expense” for discussion regarding deposit balances.
The Company’s loan to deposit ratio decreased to 119.8% at
September 30, 2018.
Borrowings. Borrowings
decreased $70.2 million to $526.2 million at September 30, 2018,
from $596.4 million at June 30, 2018. See “Interest Expense”
for discussion regarding borrowing amounts.
Stockholders’ Equity.
Stockholders’ equity increased $3.6 million to $562.9 million at
September 30, 2018, from $559.3 million at June 30, 2018. 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,
2018 closing price of $15.55 per share, the Company stock was
trading at 128.8% 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, 2018 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) |
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
| Assets |
2018 |
|
2018 |
|
|
(unaudited) |
|
(audited) |
|
Cash on hand and in banks |
$ |
24,241 |
|
|
$ |
23,613 |
|
|
Federal funds sold and short term investments |
|
4,322 |
|
|
|
11,235 |
|
| Cash and cash equivalents |
|
28,563 |
|
|
|
34,848 |
|
|
|
|
|
|
|
|
|
Loans, net |
|
3,501,985 |
|
|
|
3,540,903 |
|
|
Equity securities |
|
1,446 |
|
|
|
1,565 |
|
|
Debt securities available for sale, at fair value |
|
39,662 |
|
|
|
43,126 |
|
|
Debt securities held to maturity, |
|
|
|
|
|
| fair value of $317,158 and $326,511,
respectively. |
|
327,591 |
|
|
|
335,374 |
|
|
Bank Owned Life Insurance (at cash surrender value) |
|
99,061 |
|
|
|
98,438 |
|
|
Federal Home Loan Bank of New York stock ("FHLB"), at cost |
|
27,304 |
|
|
|
30,365 |
|
|
Accrued interest receivable |
|
11,892 |
|
|
|
11,261 |
|
|
Real estate owned |
|
1,564 |
|
|
|
1,564 |
|
|
Office properties and equipment, net |
|
13,323 |
|
|
|
13,455 |
|
|
Deferred tax assets |
|
25,236 |
|
|
|
25,864 |
|
|
Other assets |
|
32,663 |
|
|
|
30,276 |
|
| Total Assets |
$ |
4,110,290 |
|
|
$ |
4,167,039 |
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
Deposits |
$ |
2,924,025 |
|
|
$ |
2,915,128 |
|
|
Borrowings |
|
526,159 |
|
|
|
596,372 |
|
|
Advance payments by borrowers for taxes and |
|
|
|
|
|
| insurance |
|
24,604 |
|
|
|
24,169 |
|
|
Official checks outstanding |
|
3,766 |
|
|
|
5,454 |
|
|
Other liabilities |
|
68,792 |
|
|
|
66,570 |
|
| Total liabilities |
|
3,547,346 |
|
|
|
3,607,693 |
|
|
|
|
|
|
|
|
| Stockholders' Equity |
|
|
|
|
|
|
Common stock, $0.01 par value; 150,000,000 shares authorized; |
|
|
|
|
|
| 56,245,065 shares issued; 46,619,858 shares
outstanding at |
|
|
|
|
|
| September 30, 2018 and 46,616,646 shares
outstanding at |
|
|
|
|
|
| June 30, 2018. |
|
562 |
|
|
|
562 |
|
|
Additional paid-in capital |
|
514,373 |
|
|
|
514,002 |
|
|
Unallocated common stock held by the employee stock |
|
|
|
|
|
| ownership plan |
|
(16,281 |
) |
|
|
(16,631 |
) |
|
Non-vested restricted stock awards |
|
(311 |
) |
|
|
(176 |
) |
|
Treasury stock, at cost; 9,625,207 shares at September 30, 2018
and |
|
|
|
|
|
| 9,628,419 shares at June 30, 2018. |
|
(129,429 |
) |
|
|
(129,433 |
) |
|
Retained earnings |
|
182,702 |
|
|
|
179,799 |
|
|
Accumulated other comprehensive income, net of tax |
|
11,328 |
|
|
|
11,223 |
|
| Total stockholders' equity |
|
562,944 |
|
|
|
559,346 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
4,110,290 |
|
|
$ |
4,167,039 |
|
|
|
|
|
|
|
|
| Oritani Financial Corp. and
Subsidiaries |
| Consolidated Statements of Income |
| Three Months Ended September 30, 2018 and
2017 |
| (In thousands, except share data) |
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
September
30, |
|
|
|
|
|
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
unaudited |
|
Interest income: |
|
|
|
|
|
| Loans |
$ |
35,952 |
|
|
$ |
35,837 |
| Dividends on FHLB stock |
|
448 |
|
|
|
485 |
| Equity securities |
|
10 |
|
|
|
12 |
| Debt securities available for sale |
|
240 |
|
|
|
484 |
| Debt securities held to maturity |
|
1,929 |
|
|
|
1,099 |
| Federal funds sold and short term investments |
|
22 |
|
|
|
3 |
| Total Interest Income |
|
38,601 |
|
|
|
37,920 |
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
| Deposits |
|
9,037 |
|
|
|
7,353 |
| Borrowings |
|
3,269 |
|
|
|
2,923 |
| Total interest expense |
|
12,306 |
|
|
|
10,276 |
| |
|
|
|
|
|
| Net interest income before provision for loan
losses |
|
26,295 |
|
|
|
27,644 |
|
|
|
|
|
|
|
|
Reversal of provision for loan losses |
|
(2,000 |
) |
|
|
— |
| Net interest income after provision for loan
losses |
|
28,295 |
|
|
|
27,644 |
|
|
|
|
|
|
|
|
Non-interest income: |
|
|
|
|
|
| Fees and service charges for customer services |
|
239 |
|
|
|
256 |
| Bank-owned life insurance |
|
624 |
|
|
|
646 |
| Net losses recognized on equity securities |
|
(119 |
) |
|
|
— |
| Other income |
|
77 |
|
|
|
69 |
| Total non-interest income |
|
821 |
|
|
|
971 |
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
| Compensation, payroll taxes and fringe
benefits |
|
6,581 |
|
|
|
6,556 |
| Advertising |
|
143 |
|
|
|
142 |
| Office occupancy and equipment expense |
|
760 |
|
|
|
749 |
| Data processing service fees |
|
499 |
|
|
|
544 |
| Federal insurance premiums |
|
300 |
|
|
|
300 |
| Other expenses |
|
2,344 |
|
|
|
1,221 |
| Total non-interest expenses |
|
10,627 |
|
|
|
9,512 |
|
|
|
|
|
|
|
| Income before income tax expense |
|
18,489 |
|
|
|
19,103 |
|
Income tax expense |
|
5,092 |
|
|
|
7,107 |
| Net income |
$ |
13,397 |
|
|
$ |
11,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per basic common share |
$ |
0.30 |
|
|
$ |
0.27 |
|
Income per diluted common share |
$ |
0.30 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
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