EXHIBIT 99.1

Oritani Financial Corp. Announces 2nd Quarter Results and Dividend

TOWNSHIP OF WASHINGTON, N.J., Jan. 30, 2012 (GLOBE NEWSWIRE) -- Oritani Financial Corp. (the "Company" or "Oritani") (Nasdaq:ORIT), the holding company for Oritani Bank (the "Bank"), reported net income of $7.6 million, or $0.18 per basic and diluted common share, for the three months ended December 31, 2011, and $15.0 million, or $0.33 per basic (and $0.32 diluted) common share, for the six months ended December 31, 2011. This compares to net income of $7.1 million, or $0.13 per basic and diluted common share, for the three months ended December 31, 2010, and $14.2 million, or $0.27 per basic and diluted common share, for the six months ended December 31, 2010.

The Company also reported that its Board of Directors has declared a $0.125 quarterly cash dividend on the Company's common stock. The record date for the dividend will be February 10, 2012 and the payment date will be February 24, 2012.

"Oritani has stuck to its disciplines and delivered results," said Kevin J. Lynch, the Company's Chairman, President and CEO. "We continue to generate quality loans. Key credit characteristics of the existing portfolio continue to improve and the number of troubled loans continues to be reduced. These factors have contributed to increased margin, decreased provisions and increased bottom line."

Comparison of Operating Results for the Periods Ended December 31, 2011 and 2010

Net Income. Net income increased $530,000, or 7.5%, to $7.6 million for the quarter ended December 31, 2011, from $7.1 million for the corresponding 2010 quarter. Net income increased $715,000, or 5.0%, to $15.0 million for the six months ended December 31, 2011, from $14.2 million for the corresponding 2010 period. The primary cause of the increased income in the 2011 periods was increased net interest income partially offset by increased expenses. 

Total Interest Income. Total interest income increased $1.2 million, or 4.0%, to $30.5 million for the three months ended December 31, 2011, from $29.3 million for the three months ended December 31, 2010. The largest increase occurred in interest on loans, which increased $2.2 million or 9.1%, to $26.9 million for the three months ended December 31, 2011, from $24.7 million for the three months ended December 31, 2010. During that same period, the average balance of loans increased $187.8 million while the yield on the portfolio decreased 15 basis points. The decreased yield was primarily due to the impact of current market rates on new originations, refinancings, prepayments and repricings. There was an overall decrease in interest income regarding the investment related categories (Securities HTM; Securities AFS; MBS HTM; MBS AFS and short term investments). On an overall basis, there were decreases in yield and average balances. The decreased yield was primarily due to the prepayment of higher yielding securities and the returns associated with new purchases. Management actively purchased such assets at times over the period as excess funds were available for deployment. The investment purchases were primarily in the category of MBS AFS as management believed such securities provided the best available risk/reward profile based on the projected cash needs and interest rate risk position of the Company. However, purchases have slowed considerably and there was only one investment purchase of any type during the quarter ended December 31, 2011. MBS AFS was the only investment category that realized an increase in interest income over the periods. Interest on MBS AFS increased $889,000, or 47.1%, to $2.8 million for the three months ended December 31, 2011, from $1.9 million for the three months ended December 31, 2010. The average balance of MBS AFS increased $239.1 million for the three months ended December 31, 2011 versus the corresponding 2010 period while the yield on the portfolio decreased 25 basis points.

Total interest income increased $2.2 million, or 3.7%, to $60.3 million for the six months ended December 31, 2011, from $58.1 million for the six months ended December 31, 2010. The largest increase occurred in interest on loans, which increased $3.9 million or 7.9%, to $52.9 million for the six months ended December 31, 2011, from $49.0 million for the six months ended December 31, 2010. Over that same period, the average balance of loans increased $173.8 million and the yield on the portfolio decreased 18 basis points. Interest on MBS AFS increased $2.5 million, or 77.4%, to $5.6 million for the six months ended December 31, 2011, from $3.2 million for the six months ended December 31, 2010. The average balance of MBS AFS increased $310.0 million over these periods while the yield on the portfolio decreased 45 basis points. The explanations provided in paragraph above regarding changes in interest income for the three month period comparison are also applicable to the six month period comparison. 

Total Interest Expense. Total interest expense decreased $563,000, or 6.2%, to $8.5 million for the three months ended December 31, 2011, from $9.1 million for the three months ended December 31, 2010. The majority of the decrease occurred in interest expense on deposits, which decreased $535,000, or 14.0%, to $3.3 million for the three months ended December 31, 2011, from $3.8 million for the three months ended December 31, 2010. The average balance of interest bearing deposits increased $108.0 million over the period while the average cost of these funds decreased 25 basis points. 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. Interest expense on borrowings was fairly stable between the two periods. However, the average balance of borrowings increased significantly ($136.5 million) over the period while the cost decreased significantly (82 basis points). The Company has increased its overnight borrowings with the Federal Home Loan Bank of New York ("FHLB-NY"). These borrowings had a very low cost associated with them and the rate of interest on these borrowings is expected to remain low for the foreseeable future.

Total interest expense decreased $1.3 million, or 6.8%, to $17.2 million for the six months ended December 31, 2011, from $18.5 million for the six months ended December 31, 2010. Interest expense on deposits decreased $1.1 million, or 13.8%, to $7.0 million for the six months ended December 31, 2011, from $8.1 million for the six months ended December 31, 2010. The average balance of interest bearing deposits increased $101.0 million over this period while the average cost of these funds decreased 25 basis points. Interest expense on borrowings decreased $137,000, or 1.3%, to $10.3 million for the six months ended December 31, 2011, from $10.4 million for the six months ended December 31, 2010. The average balance of borrowings increased $86.3 million over the period while the cost decreased 63 basis points. The explanations provided in paragraph above regarding changes in interest expense for the three month period comparison are also applicable to the six month period comparison.

Net Interest Income Before Provision for Loan Losses. Net interest income increased by $1.8 million, or 8.6%, to $22.0 million for the three months ended December 31, 2011, from $20.3 million for the three months ended December 31, 2010. Net interest income increased by $3.4 million, or 8.7%, to $43.0 million for the six months ended December 31, 2011, from $39.6 million for the six months ended December 31, 2010. The Company's net interest income, spread and margin over the period are detailed in the chart below.

The Company's spread and margin increased steadily over the 2011 fiscal year and that expansion has continued into the current fiscal year. The Company expects that the spread and margin will come under pressure in the current interest rate environment due to several factors, including: rates on new loan originations and investment purchases; modifications of loans within the existing loan portfolio; prepayments of higher yielding loans and investments; limited ability to lower deposit and borrowing costs; promotional interest costs to attract new deposit customers, expected increases in borrowing costs and decreased net interest income due to funds used for repurchase activity. The Company's largest interest rate risk exposure is to a flat or inverted yield curve, and the yield curve has moved in this direction recently. The pressure pertaining to the promotional costs to attract new deposits will be particularly high for the remainder of the fiscal year as the Company has embarked on a campaign to increase money market deposits with an above market promotional rate.

Despite the above, spread, margin and net interest income all have increased during fiscal 2012. Many of the pressures detailed above have already impacted the Company. However, the Company has been able to offset these pressures. Two of the strategies that have boosted spread, margin and net interest income pertain to deposits. The Company has been able to successfully lower the cost of money market deposits without a significant impact on balances and also decreased its reliance on time deposits, which carry a higher cost. The shifting of investment funds out of federal funds sold and into higher yielding investments also improved results. The most significant impact on spread, margin and net interest income has been in borrowings. The cost of borrowing has significantly decreased due to greater use of overnight borrowings, which presently have a very low cost. While this strategy has increased net interest income, spread and margin, it has also increased interest rate risk. The Company expects to address this increased interest rate risk by extending the maturity, over time, of the overnight borrowings. This extension will increase borrowing costs. The Company has not fixed a time period to enact this strategy as it presently sees the risk of higher long term rates as minimal. The Company's stock repurchase activity in this fiscal year effectively decreased net interest income. However, the impact was minimal as the cost of these funds (either federal funds sold or overnight borrowings) was very low.

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 $322,000 and $650,000 for the three and six months ended December 31, 2011, respectively, and 674,000 and $1.4 million for the three and six months ended December 31, 2010, respectively. 

Provision for Loan Losses.  The Company recorded provisions for loan losses of $2.0 million for the three months ended December 31, 2011 as compared to $2.5 million for the three months ended December 31, 2010. The Company recorded provisions for loan losses of $5.5 million for the six months ended December 31, 2011 as compared to $4.5 million for the six months ended December 31, 2010. A rollforward of the allowance for loan losses for the three and six months ended December 31, 2011 and 2010 is presented below:

The primary contributors to the current level of provision for loan losses are the delinquency and nonaccrual totals, changes in loan risk ratings, loan growth, charge-offs and economic factors.

Delinquency and non performing asset information is provided below:

Over the fiscal year ended June 30, 2011, the Company realized significant decreases in total delinquent loans, nonaccrual loans and nonperforming assets. In fiscal 2012, there have been increases in the loan delinquency categories. The increases are primarily due to increases in residential delinquencies. The most significant change between September 30 and December 31, 2011 was a $2.2 million increase in the 60-89 days past due category. The largest loan in this category at December 31, 2011 is a $3.6 million loan on a multifamily property in Hudson County New Jersey. This loan was also a component of the September 30 total. The primary reasons for the increase in the 60-89 days past due category are a $1.5 million residential loan and a $1.1 million loan on a mixed use property. Both of these properties are in Bergen County, New Jersey. The residential loan was in the 30-59 days past due category at September 30, 2011 and is currently rated special mention. The mixed use loan was also in the 30-59 days past due category at September 30, 2011. This loan is currently rated substandard. Payments on this loan have been inconsistent and legal action has commenced.

At December 31, 2011, there are two nonaccrual loans as well as one nonaccrual loan relationship with balances greater than $1.0 million. These loans are discussed below:

• A construction loan relationship in which Oritani is a participant. The relationship entails two borrowing entities and four separate properties. Oritani's portion of this loan relationship totals $4.9 million. All four of the properties are for residential tract development and are located in Rockland and Orange counties, New York. The loan is classified as impaired and as a troubled debt restructuring as of December 31, 2011. The lead lender on this loan is attempting to negotiate a settlement with the borrowers that would expedite resolution. In accordance with the results of the impairment analysis for this loan, a charge off of $1.5 million was previously recognized against this loan and a $1.2 million impairment reserve remains against this loan as of December 31, 2011. 
• A $2.8 million mixed use building in Bergen County, NJ. The borrower encountered cash flow difficulties and is currently negotiating with Oritani for repayment of the past due amounts in a manner satisfactory to Oritani. The loan is classified as substandard. The loan has not been classified as impaired as the current cash flows are sufficient to satisfy the debt obligation and it is expected that repayment in full will ultimately come from the borrower.
• A $1.8 million construction loan for a luxury home in Morris County, New Jersey. Construction at the property ceased and foreclosure proceedings have commenced. Although foreclosure action is proceeding, there are ongoing negotiations in an attempt to reach a settlement on this matter. The loan is classified as impaired as of December 31, 2011. In accordance with the results of the impairment analysis for this loan, charge offs totaling $947,000 were previously recognized against this loan and a $300,000 impairment reserve remains against this loan as of December 31, 2011. 

There are nine other multifamily/commercial real estate loans, totaling $3.9 million, classified as nonaccrual at December 31, 2011. The largest of these loans has a balance of $679,000. 

There are fifteen other residential loans, totaling $4.9 million, classified as nonaccrual at December 31, 2011. The largest of these loans has a balance of $958,000.

See "Comparison of Financial Condition at December 31, 2011 and December 31, 2010" for a discussion of Real Estate Owned. 

Other Income. Other income decreased $266,000 to $920,000 for the three months ended December 31, 2011, from $1.2 million for the three months ended December 31, 2010. The decrease is primarily due to a $262,000 impairment charge for equity securities that was recognized in the 2011 period. Net income on the real estate investment captions of net real estate operations and income from investments in real estate joint ventures was fairly stable over the two periods. A decrease was expected as income was significantly reduced at one commercial property due to the impact of flooding in conjunction with Hurricane Irene. However, an insurance claim pertaining to a prior flood was received and recognized as income, offsetting this expected decrease. It is possible that some of the current costs associated with the flooding at that property will be reimbursed in a future period. 

Other income decreased $90,000 to $2.8 million for the six months ended December 31, 2011 from $2.9 million for the six months ended December 31, 2010. The decrease was primarily due to the impairment charge described above and reduced gain on sale of assets. The Company had nonrecurring gains in both the 2011 and 2010 periods. The 2011 gain was a $557,000 net gain that primarily pertained to the sale of a loan classified as held for sale. The 2010 gain was a $718,000 net gain realized on the sale of real estate owned property. These decreases were partially offset by increases in income from bank owned life insurance and net income from investments in real estate joint ventures. Income from bank-owned life insurance increased by $245,000 to $804,000 for the six months ended December 31, 2011, from $559,000 for the six months ended December 31, 2010, primarily due to increased investment in bank-owned life insurance. Net income from investments in real estate joint ventures increased by $177,000 to $416,000 for the six months ended December 31, 2011, from $239,000 for the six months ended December 31, 2010, primarily due to the receipt of the insurance proceeds described in the paragraph above.

Operating Expenses. Operating expenses increased $1.3 million to $9.1 million for the three months ended December 31, 2011, from $7.8 million for the three months ended December 31, 2010. The increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.2 million to $6.4 million for the three months ended December 31, 2011, from $5.2 million for the three months ended December 31, 2010.  The increase was primarily due to the amortization of costs associated with stock awards and options that were granted under the Company's 2011 Equity Incentive Plan ("the Equity Plan") on August 18, 2011. The expense associated with the Equity Plan recognized in the quarter totaled $1.5 million. 

Operating expenses increased $1.8 million to $17.3 million for the six months ended December 31, 2011, from $15.5 million for the six months ended December 31, 2010. The increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.8 million to $12.0 million for the six months ended December 31, 2011, from $10.2 million for the six months ended December 31, 2010. The increase was primarily due to costs associated with the Equity Plan. The expense associated with the Equity Plan recognized in the six month period totaled $2.3 million.

Income Tax Expense. Income tax expense for the three months ended December 31, 2011 was $4.3 million on pre-tax income of $11.9 million, resulting in an effective tax rate of 35.9%. Income tax expense for the three months ended December 31, 2010 was $4.1 million on pre-tax income of $11.2 million, resulting in an effective tax rate of 36.7%. Income tax expense for the six months ended December 31, 2011, was $8.1 million, due to pre-tax income of $23.1 million, resulting in an effective tax rate of 35.2%. For the six months ended December 31, 2010, income tax expense was $8.3 million, due to pre-tax income of $22.5 million, resulting in an effective tax rate of 36.7%. 

Comparison of Financial Condition at December 31, 2011 and June 30, 2011

Total Assets. Total assets increased $15.9 million, or 0.6%, to $2.60 billion at December 31, 2011, from $2.59 billion at June 30, 2011. The primary investing activities were in loans and MBS AFS. These activities were funded by decreases in federal funds sold and an increase in overnight borrowings. Asset growth has been muted by one of the Company's recent strategic decisions. Cash flows from the investment portfolio have been applied to overnight borrowings, and not redeployed into the investment portfolio. This decision was made to lessen the interest rate risk that is being created through the increased overnight borrowings.

Cash and Cash Equivalents. Cash and cash equivalents (which include fed funds and short term investments) decreased $124.5 million to $8.8 million at December 31, 2011, from $133.2 million at June 30, 2011. The funds were deployed in general operations, including funding of the Company's stock repurchase activity.

Net Loans. Loans, net increased $150.3 million to $1.82 billion at December 31, 2011, from $1.67 billion at June 30, 2011. The Company continues its emphasis on loan originations, particularly multifamily and commercial real estate loans. Loan originations totaled $262.1 million and purchases totaled $2.0 million for the six months ended December 31, 2011. 

Mortgage-backed Securities Available For Sale. Mortgage-backed securities AFS increased $58.5 million to $564.5 million at December 31, 2011, from $505.9 million at June 30, 2011. On a linked quarter basis, however, balances in this category have decreased $41.8 million as the Company is not currently redeploying proceeds from the investment portfolio into new purchases.

Real Estate Owned. Real estate owned ("REO") increased $984,000 to $5.0 million at December 31, 2011, from $4.0 million at June 30, 2011. During the six months ended December 31, 2011, the Bank took title to three properties and disposed of one property. The $5.0 million balance consists of 9 properties. Four of these properties, with a book value of $3.0 million, are currently under contract for sale.

Deposits. Deposits decreased $25.6 million, or 1.9%, to $1.36 billion at December 31, 2011, from $1.38 billion at June 30, 2011. Growth in core accounts was offset by decreases in time deposits. Strong deposit growth in core accounts remains a strategic objective of the Company and promotions designed to attract core accounts were recently implemented. New branch locations in Upper Montclair and Clifton, NJ, have opened during the fiscal year. 

Stockholders' Equity. Stockholders' equity decreased $138.7 million to $506.7 million at December 31, 2011, from $645.4 million at June 30, 2011.  The decline is primarily attributable to stock repurchases. The Company's repurchase activity is summarized below:
Delinquency and non performing asset information is provided below:

On November 14, 2011, the Company announced a repurchase plan for up to 2,278,776 shares of its common stock. As of January 27, 2012, there were 2,180,775 shares authorized under the Company's current stock repurchase plan that had not yet been purchased.

In addition to the repurchase activity above, the Company repurchased shares in conjunction with the Equity Plan. On August 18, 2011, a total of 1,598,100 shares were granted by the Board of Directors under the Equity Plan. These shares were purchased in open market transactions during the quarter ended September 30, 2011. The total cost of these shares was $19.3 million and the average cost per share was $12.06.

Based on our December 31, 2011 closing price of $12.77 per share and book value per share of $11.14, the Company stock was trading at 114.6% of book value.

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 24 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 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.

CONTACT: Kevin J. Lynch
         Chairman, President and Chief Executive Officer
         Oritani Financial Corp.
         (201) 664-5400