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EXHIBIT 99.1

Oritani Financial Corp. Announces 2nd Quarter Results and Dividend

TOWNSHIP OF WASHINGTON, N.J., Jan. 24, 2013 (GLOBE NEWSWIRE) -- Oritani Financial Corp. (the "Company" or "Oritani") (Nasdaq:ORIT), the holding company for Oritani Bank (the "Bank"), reported net income of $8.7 million, or $0.21 per basic (and $0.20 diluted) common share, for the three months ended December 31, 2012, and $18.0 million, or $0.43 per basic (and $0.42 diluted) common share, for the six months ended December 31, 2012. This compares to 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.

The Company also reported that its Board of Directors has declared a $0.15 quarterly cash dividend on the Company's common stock. The record date for the dividend will be February 8, 2013 and the payment date will be February 22, 2013.

"It has been another very successful quarter for Oritani. With an annualized ROA of 1.27% and an efficiency ratio of 38.1%, we continue to be one of the top performing banks in the country" said Kevin J. Lynch, the Company's Chairman, President and CEO. "However the economic landscape remains uncertain and we are very mindful of that fact. I have been pleased with our loan growth, especially given the high quality underwriting standards that we maintain." Mr. Lynch continued, "It is a transitional period here at Oritani, as our spread and margin began to contract this quarter. This event was inevitable given the current interest rate environment. However, we are still poised for net interest income expansion, primarily through additional loan originations, and ongoing solid results buoyed by our expense management."

Comparison of Operating Results for the Periods Ended December 31, 2012 and 2011

Net Income

Net income increased $1.1 million, or 14.7%, to $8.7 million for the quarter ended December 31, 2012, from $7.6 million for the corresponding 2011 quarter. Net income increased $3.0 million, or 20.0%, to $18.0 million for the six months ended December 31, 2012, from $15.0 million for the corresponding 2011 period. The primary cause of the increased income in the 2012 periods was increased net interest income and decreased provision for loan losses.

Total Interest Income

The components of interest income for the three months ended December 31, 2012 and 2011, changed as follows:

  Three Months Ended December 31 Increase / (decrease)
  2012   2011     Average
  $ Yield $ Yield $ Balance Yield
  (dollars in thousands)
Interest on mortgage loans $ 29,079 5.49% $ 26,936 6.06% $ 2,143 $ 339,318 -0.57%
Interest on securities HTM and dividends on FHLB stock 437 4.18% 281 3.30% 156 7,797 0.88%
Interest on securities AFS 58 1.94% 304 2.34% (246) (40,072) -0.40%
Interest on MBS HTM 225 2.58% 226 2.55% (1) (619) 0.03%
Interest on MBS AFS 1,807 1.74% 2,776 1.87% (969) (180,625) -0.13%
Interest on federal funds sold and short term investments 1 0.25% 1 0.24%   (102) 0.01%
Total interest income $ 31,607 4.82% $ 30,524 4.89% $ 1,083 $ 125,697 -0.07%
               

The changes in average balance reveal the effects of two of the Company's strategic business decisions. The Company's primary focus is organic growth of multifamily and commercial real estate loans. The average balance of loans increased $339.3 million over the periods. On a linked quarter basis (December 31, 2012 versus September 30, 2012), the average balance of loans grew $98.2 million. The growth was primarily achieved through originations. Loan originations totaled $141.6 million for the three months ended December 31, 2012. The yield on the loan portfolio decreased 57 basis points for the quarter ended December 31, 2012 versus the comparable 2011 period. The decreased yield was primarily due to the impact of current market rates on new originations, refinancings, prepayments and repricings. The decrease would have been larger; however, prepayment penalties were higher in the 2012 period. Prepayment penalties are recognized as interest on loans. Prepayment penalties totaled $1.2 million in the 2012 period versus $387,000 in the 2011 period. Prepayment penalty provisions are incorporated into all of the Company's multifamily and commercial real estate loan documents. The penalties are intended to protect the Company from the prepayment of loans or provide the Company with compensation if the loan is prepaid. The current interest rate environment provides an economic incentive for many of our existing loans to refinance, despite the prepayment penalties. Prepayment penalties boosted annualized loan yield by 23 basis points in the 2012 period versus 9 basis points in the 2011 period. The second strategic business decision evidenced in the chart was the determination to no longer deploy the cash flows from the investment portfolio back into new investments. This decision impacted the periods subsequent to September 30, 2011 and was made because the Company determined that the risk/reward profiles of permissible securities no longer warranted additional investment. Consequently, the average balances of virtually all the investment related captions declined from 2011 to 2012. The only average balance caption that showed an increase was securities held to maturity and this was only due to required purchases of FHLB stock. The decision has aided overall yield on interest earning assets as the Company now has a lower percentage of its interest earning assets in lower yielding assets like mortgage backed securities ("MBS"), investment securities and federal funds sold. The limited decrease in yield on interest earnings assets that occurred in 2012 versus 2011 (7 basis points), despite a much lower interest rate environment, is partially attributable to this decision.

The components of interest income for the six months ended December 31, 2012 and 2011, changed as follows:

  Six Months Ended December 31 Increase / (decrease)
  2012 2011   Average  
  $ Yield $ Yield $ Balance Yield
  (dollars in thousands)
Interest on mortgage loans  $ 58,161 5.62%  $ 52,865 6.06%  $ 5,296  $ 324,415 -0.44%
Interest on securities HTM and dividends on FHLB stock  844 4.20%  580 3.75%  264  9,277 0.45%
Interest on securities AFS  132 1.64%  686 1.96%  (554)  (54,117) -0.32%
Interest on MBS HTM  459 2.60%  475 2.62%  (16)  (920) -0.02%
Interest on MBS AFS  3,831 1.75%  5,634 1.96%  (1,803)  (136,694) -0.21%
Interest on federal funds sold and short term investments  2 0.25%  30 0.29%  (28)  (19,066) -0.04%
Total interest income  $ 63,429 4.88%  $ 60,270 4.87%  $ 3,187  $ 122,895 0.01%
               

The explanations for changes described above for the three month period are also applicable to the six month period. Loan originations for the six months ended December 31, 2012 totaled $359.6 million. Prepayment penalties totaled $2.6 million in the 2012 period versus $485,000 in the 2011 period, and boosted annualized loan yield by 25 basis points in the 2012 period versus 6 basis points in the 2011 period.

Total Interest Expense.

The components of interest expense for the three months ended December 31, 2012 and 2011, changed as follows:

               
  Three Months Ended December 31 Increase / (decrease)
  2012   2011     Average
  $ Cost $ Cost $ Balance Cost
  (dollars in thousands)
Savings deposits $ 97 0.28% $ 160 0.41% $ (63) $ (16,590) -0.13%
Money market 550 0.49% 677 0.72% (127) 71,682 -0.23%
Checking accounts 138 0.22% 214 0.42% (76) 44,660 -0.20%
Time deposits 1,350 1.04% 2,241 1.39% (891) (123,846) -0.35%
Total deposits 2,135 0.63% 3,292 0.95% (1,157) (24,094) -0.32%
Borrowings 5,401 2.62% 5,195 3.12% 206 158,453 -0.50%
Total interest expense $ 7,536 1.38% $ 8,487 1.66% $ (951) $ 134,359 -0.28%
               

The Company continued its strategic objective of increasing core deposits. However, increases in core account balances have been offset by decreases in time deposits. Overall deposit growth has not met management's expectations. The Company has managed deposit costs with a priority on profitability. Deposits costs are compared to alternate sources of funds and priced accordingly. This approach has contributed to increased income but has negatively impacted overall deposit growth and caused an increased reliance on borrowings. Management is considering adjustments to this strategy with a goal of increasing deposits, although such strategies may negatively impact costs. The average cost of interest bearing deposits decreased 32 basis points over the periods. On a linked quarter basis, the average cost of interest bearing deposits decreased 5 basis points. The average balance of borrowings increased significantly ($158.5 million) over the period while the cost decreased significantly (50 basis points). Overnight and other short term borrowings totaled $285.0 million at December 31, 2012. 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. However, the Company is aware of the risk inherent in short term borrowings. As discussed in prior public filings, the Company has taken steps to mitigate the risk associated with its borrowing position. The Company is poised to deploy additional strategies to mitigate this risk and is regularly analyzing the most opportune time to deploy such strategies. The aforementioned goal of increasing deposits, if achieved, will also reduce the short term borrowing level. 

The components of interest expense for the six months ended December 31, 2012 and 2011, changed as follows:

               
  Six Months Ended December 31 Increase / (decrease)
  2012   2011     Average
  $ Cost $ Cost $ Balance Cost
  (dollars in thousands)
Savings deposits $ 195 0.28% $ 371 0.48% $ (176) $ (16,002) -0.20%
Money market 1,109 0.50% 1,517 0.79% (408) 63,022 -0.29%
Checking accounts 273 0.22% 426 0.45% (153) 54,555 -0.23%
Time deposits 2,892 1.08% 4,661 1.42% (1,769) (120,110) -0.34%
Total deposits 4,469 0.66% 6,975 1.01% (2,506) (18,535) -0.35%
Borrowings 10,699 2.71% 10,271 3.43% 428 190,269 -0.72%
Total interest expense $ 15,168 1.41% $ 17,246 1.74% $ (2,078) $ 171,734 -0.33%
               

The explanations for changes described above for the three month period are also applicable to the six month period. 

Net Interest Income Before Provision for Loan Losses. Net interest income increased by $2.0 million, or 9.2%, to $24.1 million for the three months ended December 31, 2012, from $22.0 million for the three months ended December 31, 2011. Net interest income increased by $5.2 million, or 12.2%, to $48.3 million for the six months ended December 31, 2012, from $43.0 million for the six months ended December 31, 2011. The Company's net interest income, spread and margin over the period are detailed in the chart below.

  Net Interest  
  Income Before  
Quarter Ended Provision Spread Margin
(dollars in thousands)
December 31, 2012 $ 24,071 3.44% 3.67%
September 30, 2012 24,190 3.50% 3.76%
June 30, 2012 23,335 3.40% 3.66%
March 31, 2012 22,298 3.30% 3.58%
December 31, 2011 22,037 3.23% 3.53%
September 30, 2011 20,987 3.02% 3.42%

The Company's spread and margin increased steadily over the 2012 fiscal year. That expansion had continued into the first quarter of the current fiscal year but retreated somewhat in the current quarter. As previously stated, the Company expects that its spread and margin will remain 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 further reduce deposit and borrowing costs; promotional interest costs to attract new deposit customers and increases in borrowing costs which may be necessary to reduce interest rate risk.   The Company has been able to largely offset these pressures. Several factors have contributed to this result. One such factor has been the utilization of short term borrowings. In the recent rate environment, such borrowings have a very low cost which contributed to the increased spread, margin and net interest income. The shifting of assets out of investments and into higher yielding loans also contributed to increased spread, margin and net interest income. In addition, the Company has been able to lower the cost of overall deposits.  The Company believes that the most effective means for it to offset the impact of decreased spread and margin is loan growth, through quality loan originations. The Company has been able to achieve quality loan growth and continuation of this occurrence remains one of its strategic goals. The Company's largest interest rate risk exposure is to a flat or inverted yield curve

A component of the strong performance of the spread, margin and net interest income has been prepayment penalties (discussed in Total Interest Income). The prepayment penalties boosted the spread and margin for the quarter ended December 31, 2012 by 18 basis points each. The penalty income also boosted the September 30, 2012 quarterly spread and margin by 21 and 22 basis points, respectively and the June 30, 2012 quarterly spread and margin by 10 basis points each. 

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 $486,000 and $1.3 million for the three and six months ended December 31, 2012, respectively, and $322,000 and $650,000 for the three and six months ended December 31, 2011, respectively. 

Provision for Loan Losses.  The Company recorded provisions for loan losses of $1.5 million for the three months ended December 31, 2012 as compared to $2.0 million for the three months ended December 31, 2011. The Company recorded provisions for loan losses of $3.0 million for the six months ended December 31, 2012 as compared to $5.5 million for the six months ended December 31, 2011. A rollforward of the allowance for loan losses for the three and six months ended December 31, 2012 and 2011 is presented below:

         
  Quarter ended Six months ended
  December 31, December 31,
  2012 2011 2012 2011
  (Dollars in thousands)
Balance at beginning of period $32,504 $27,540 $31,187 $26,514
Provisions charged to operations 1,500 2,000 3,000 5,500
Recoveries of loans previously charged off 116 -- 117 --
Loans charged off 2,211 721 2,395 3,195
Balance at end of period $31,909 $28,819 $31,909 $28,819
         
Allowance for loan losses to total loans 1.44% 1.55% 1.44% 1.55%
Net charge-offs (annualized) to average loans outstanding 0.40% 0.16% 0.22% 0.37%
         

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:

  12/31/2012 9/30/2012 6/30/2012 3/31/2012 12/31/2011
  (dollars in thousands)
Delinquency Totals          
30 - 59 days past due $ 8,169 $ 15,544 $ 13,783 $ 11,325 $ 12,823
60 - 89 days past due 7,005 7,363 8,555 7,900 7,939
Nonaccrual 29,401 26,275 18,342 18,715 18,244
Total $ 44,575 $ 49,182 $ 40,680 $ 37,940 $ 39,006
           
Non Performing Asset Totals          
Nonaccrual loans, per above $ 29,401 $ 26,275 $ 18,342 $ 18,715 $ 18,244
Real Estate Owned 2,817 2,837 2,740 4,266 4,951
Total $ 32,218 $ 29,112 $ 21,082 $ 22,981 $ 23,195
           
Nonaccrual loans to total loans 1.32% 1.22% 0.90% 0.96% 0.98%
Delinquent loans to total loans 2.01% 2.28% 2.00% 1.95% 2.10%
Non performing assets to total assets 1.15% 1.04% 0.78% 0.87% 0.89%
           

Total delinquent loans have decreased slightly from the September 30, 2012 total but, in management's opinion, remain at an elevated level.  Over the quarter, the notes regarding a construction loan relationship in which Oritani was a participant were sold. Oritani did not lend any funds to the purchaser. A charge off was incurred in conjunction with this sale which constituted the majority of the charge off total for the quarter. The bulk of the charge off total on this relationship was previously recognized as an impairment reserve. Despite this disposal, nonaccrual loans increased versus the September 31, 2012 total. Management has worked diligently to remedy these matters. As detailed below, some progress did occur over the quarter although full resolution has not yet occurred. 

At December 31, 2012, there are nine nonaccrual loans with balances greater than $1.0 million. These loans are discussed below:

  • A $3.2 million construction loan for a luxury home in Morris County, New Jersey. The loan is classified as impaired. In accordance with the results of the impairment analysis for this loan, no reserve was required as of December 31, 2012, primarily due to a low estimated loan to value. The loan had paid as agreed, but the collateral for the loan remained unsold upon maturity. The borrower was unwilling to agree to the terms required by the Company to extend the loan.   The Company initiated foreclosure proceedings and the borrower stopped making interest payments. The borrower had tentatively indicated a willingness to consent to the extension terms required by the Company. An extension did not occur by December 31, 2012, as was originally expected by the Company.  However, a resolution acceptable to the Company was verbally agreed to by the borrower in January, 2013.
  • A $2.0 million mixed use building in Bergen County, New Jersey. The loan is classified as impaired. In accordance with the results of the impairment analysis for this loan, a charge off of $417,000 was previously recognized against this loan and an additional $400,000 charge off was recognized in the December 31, 2012 quarter.  The Company has agreed to a cash settlement from the borrower, in exchange for the release of his personal guarantee, and this payment is currently in escrow. The Company expected title to the property by December 31, 2012, but encountered delays. Foreclose proceedings are continuing in case title cannot be conveyed via deed in lieu of foreclosure. 
  • A $1.8 million construction loan for a luxury home in Morris County, New Jersey. The Company reached a settlement and forbearance agreement with the borrower on this matter during the quarter ended March 31, 2012. As part of the agreement, the borrower is completing the home with no additional funding from Oritani, which serves to further lower the loan to value on this loan. The loan is classified as a nonaccrual troubled debt restructuring ("TDR") as of December 31, 2012. As such, this loan is included in the nonaccrual loan total at December 31, 2012. However, the borrower has complied with all facets of the new agreement since its origination, including interest payments, and is fully current. The home is on schedule to be completed shortly, after which it will be marketed for sale.
  • A $1.6 million residential loan on a single family residence in Bergen County, New Jersey. A foreclosure action was initiated when loan payments became delinquent. The loan is classified as impaired. In accordance with the results of the impairment analysis for this loan, a $205,000 impairment reserve was established against this loan as of December 31, 2012.
  • A $2.5 million construction loan on improved land in Somerset County, New Jersey. The loan is classified as impaired. In accordance with the results of the impairment analysis for this loan, no reserve was required as of December 31, 2012. The loan matured in April, 2012 and the borrowers and the Company have been unable to agree on extension terms acceptable to the Company. Although all monthly payments continue to be made on the loan, the loan has been classified as nonaccrual and all payments received on the loan have been utilized to reduce principal exposure. In January, 2013, the borrowers notified the Company that they had a commitment from another financial institution and that the Company's loan would be paid in full from the proceeds of the new loan. 
  • A $1.1 million loan on a mixed use property in Bergen County, New Jersey. The loan is classified as impaired. In accordance with the results of the impairment analysis for this loan, a $265,000 impairment reserve was established against this loan as of December 31, 2012. The loan initially exhibited delinquency approximately one year ago and legal action commenced at that time. Since that time, the borrower has not consistently made timely payments nor complied with a payment plan. A monetary judgment has been obtained against the guarantors and foreclosure proceedings continue. 
  • A $2.5 million loan on a multifamily property in New York City. The loan is classified as impaired. In accordance with the results of the impairment analysis for this loan, no reserve was required as of December 31, 2012. There is a pending contract for sale of this property for $3.7 million. The closing is being delayed due to legal matters related to the seller. 
  • A $2.4 million loan on a warehouse/light industrial building in Bergen County, NJ. In accordance with the results of the impairment analysis for this loan, no reserve was required as of December 31, 2012. The borrower is deceased and his son is managing for the estate. The primary tenant was lost and the building was listed for sale. There had been an executed contract for sale for $3.9 million. Due to these circumstances, the estate no longer made payments. The premises were damaged by Hurricane Sandy and the purchaser terminated the contract. Repairs are being made to the building and all amounts are covered by insurance. Legal action by Oritani is proceeding.

There is one other loan greater than $1.0 million classified as nonaccrual at December 31, 2012 (with a balance of $1.5 million) which we are currently evaluating for impairment. The loan is classified as Substandard and carries a general reserve allocation consistent with our other Substandard loans at December 31, 2012.

There are twenty-one other multifamily/commercial real estate loans, totaling $7.7 million, classified as nonaccrual at December 31, 2012. The largest of these loans has a balance of $780,000. 

There are ten other residential loans, totaling $3.4 million, classified as nonaccrual at December 31, 2012. The largest of these loans has a balance of $958,000.

Other IncomeOther income decreased $33,000 to $887,000 for the three months ended December 31, 2012, from $920,000 for the three months ended December 31, 2011.  The decrease is primarily due to a $342,000 decrease on income from investments in joint ventures. As discussed in prior public releases, income is expected to be below historical levels for the remainder of the fiscal year. The reason primarily relates to one commercial property that incurred flood damage in 2011. Repairs on this property were extensive and the situation has caused changes in the tenant base. During the quarter ended December 31, 2012, the situation was exacerbated by negative adjustments to expected insurance reimbursements. An overall loss of $127,000 was incurred on investments in real estate joint ventures for the quarter ended December 31, 2012, primarily due to the results at the commercial property. The other significant change for the quarter was due to a $262,000 impairment charge for equity securities that was recognized in the 2011 period. A similar charge was not incurred in 2012. 

Other income decreased $714,000 to $2.1 million for the six months ended December 31, 2012 from $2.8 million for the six months ended December 31, 2011. The six month period was also impacted by the issues described above regarding income from investments in joint ventures and net loss on sale and writedowns of securities. In addition, a net gain on sale of assets of $557,000 was realized in 2011. This net gain primarily pertained to the sale of a loan classified as held for sale. Gains on sale of assets totaled $44,000 in the 2012 period resulting in a decrease of $513,000 between the periods.

Operating ExpensesOperating expenses increased $443,000 to $9.5 million for the three months ended December 31, 2012, from $9.1 million for the three months ended December 31, 2011. The increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $527,000 to $7.0 million for the three months ended December 31, 2012, from $6.4 million for the three months ended December 31, 2011.  The increase was primarily due to expenses associated with the Company's ESOP as increases in the trading price of Company's common stock caused increases in related ESOP expenses. There were also increases in direct compensation due to additional staffing and salary adjustments.

Operating expenses increased $1.5 million to $18.7 million for the six months ended December 31, 2012, from $17.3 million for the six months ended December 31, 2011. The increase was primarily due to compensation, payroll taxes and fringe benefits, which increased $1.8 million to $13.9 million for the six months ended December 31, 2012, from $12.0 million for the six months ended December 31, 2011.  The six month period was affected by the items described above for the three month period but also impacted by costs associated with stock based compensation. Stock awards and options were granted under the Company's 2011 Equity Incentive Plan ("the Equity Plan") on August 18, 2011. The 2011 period only contained 4.5 months of amortization of Equity Plan costs versus 6 months in the 2012 period.  Expenses associated with the Equity Plan were $710,000 greater in the 2012 period versus the 2011 period. 

Income Tax ExpenseIncome tax expense for the three months ended December 31, 2012 was $5.2 million on pre-tax income of $14.0 million, resulting in an effective tax rate of 37.3%.  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 six months ended December 31, 2012, was $10.7 million, due to pre-tax income of $28.6 million, resulting in an effective tax rate of 37.3%. For the six months ended December 31, 2011, income tax expense was $8.1 million, due to pre-tax income of $23.1 million, resulting in an effective tax rate of 35.2%. 

Comparison of Financial Condition at December 31, 2012 and June 30, 2012

Total Assets.  Total assets increased $108.7 million, or 4.0%, to $2.81 billion at December 31, 2012, from $2.70 billion at June 30, 2012. The primary investing activity was in loans funded by increases in short term borrowings and cash flows from the investment portfolio. 

Cash and Cash Equivalents. Cash and cash equivalents (which include fed funds and short term investments) decreased $1.4 million to $10.1 million at December 31, 2012, from $11.4 million at June 30, 2012.

Net Loans. Loans, net increased $189.3 million, or 9.5%, to $2.18 billion at December 31, 2012, from $1.99 billion at June 30, 2012. The Company continues its emphasis on loan originations, particularly multifamily and commercial real estate loans. Loan originations totaled $359.6 million for the six months ended December 31, 2012 versus $262.1 million for the six months ended December 31, 2011.

Mortgage-backed Securities Available For Sale. Mortgage-backed securities AFS decreased $85.5 million to $388.4 million at December 31, 2012, from $473.9 million at June 30, 2012. 

Deposits. Deposits decreased $38.0 million, or 2.7%, to $1.35 billion at December 31, 2012, from $1.39 billion at June 30, 2012. Growth in core deposit accounts was offset by outflows of time deposits. 

Borrowings. Borrowings increased $147.7 million, or 19.8%, to $893.6 million at December 31, 2012, from $745.9 million at June 30, 2012. 

Stockholders' Equity. Stockholders' equity decreased $4.5 million to $506.2 million at December 31, 2012, from $510.7 million at June 30, 2012.  The decrease was primarily the result of dividends, including a $0.40 special dividend paid in December, 2012, partially offset by net income. Based on our December 31, 2012 closing price of $15.32 per share, the Company stock was trading at 137.4% 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 and other factors discussed in the periodic reports filed by the Company with the Securities and Exchange Commission.

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
(in thousands, except share data)
     
  December 31, June 30,
Assets 2012 2012
  (unaudited)  
Cash on hand and in banks $ 4,216 $ 4,016
Federal funds sold and short term investments 5,857 7,423
Cash and cash equivalents 10,073 11,439
     
Loans, net 2,182,162 1,992,817
Securities available for sale, at fair value 11,940 26,031
Mortgage-backed securities held to maturity, fair value of $35,808 and $37,648 at December 31, 2012 and June 30, 2012, respectively 33,974 36,130
Mortgage-backed securities available for sale, at fair value 388,438 473,920
Bank Owned Life Insurance (at cash surrender value) 57,743 46,283
Federal Home Loan Bank of New York stock ("FHLB"), at cost 44,919 38,222
Accrued interest receivable 9,479 10,630
Investments in real estate joint ventures, net 5,525 5,441
Real estate held for investment 1,000 1,123
Real estate owned 2,817 2,740
Office properties and equipment, net 15,173 15,442
Deferred tax assets 27,341 25,570
Other assets 19,102 15,194
Total Assets $ 2,809,686 $ 2,700,982
     
Liabilities    
Deposits $ 1,351,666 $ 1,389,706
Borrowings 893,578 745,865
Advance payments by borrowers for taxes and insurance 15,932 15,217
Official checks outstanding 6,254 3,852
Other liabilities 36,094 35,633
Total liabilities 2,303,524 2,190,273
     
Stockholders' Equity    
Common stock, $0.01 par value; 150,000,000 shares authorized; 56,245,065 shares issued and 45,381,531 shares outstanding at December 31, 2012; 56,245,065 shares issued and 45,198,765 shares outstanding at June 30, 2012. 562 562
Additional paid-in capital 496,283 495,704
Unallocated common stock held by the employee stock ownership plan (26,522) (27,582)
Restricted Stock Awards (15,900) (19,146)
Treasury stock, at cost; 10,863,534 shares at December 31, 2012 and 11,046,300 shares at June 30, 2012 (141,278) (143,469)
Retained income 188,697 200,718
Accumulated other comprehensive income, net of tax 4,320 3,922
Total stockholders' equity 506,162 510,709
Total Liabilities and Stockholders' Equity $ 2,809,686 $ 2,700,982
     

 

Oritani Financial Corp. and Subsidiaries
Township of Washington, New Jersey
Consolidated Statements of Operations
Three and Six Months Ended December 31, 2012 and 2011
         
  Three months ended Six months ended
  December 31, December 31,
  2012 2011 2012 2011
  unaudited
Interest income: (in thousands, except per share data)
Mortgage loans $ 29,079 $ 26,936 $ 58,161 $ 52,865
Dividends on FHLB stock 437 281 844 580
Securities available for sale 58 304 132 686
Mortgage-backed securities held to maturity 225 226 459 475
Mortgage-backed securities available for sale 1,807 2,776 3,831 5,634
Federal funds sold and short term investments 1 1 2 30
Total interest income 31,607 30,524 63,429 60,270
         
Interest expense:        
Deposits  2,135 3,292 4,469 6,975
Borrowings 5,401 5,195 10,699 10,271
Total interest expense 7,536 8,487 15,168 17,246
         
Net interest income before provision for loan losses 24,071 22,037 48,261 43,024
         
Provision for loan losses  1,500 2,000 3,000 5,500
Net interest income 22,571 20,037 45,261 37,524
         
Other income:        
Service charges 206 285 450 612
Real estate operations, net 256 236 626 586
Net (loss) income from investments in real estate joint ventures (127) 215 12 416
Bank-owned life insurance 455 400 860 804
Net gain (loss) on sale of assets 36 (12) 44 557
Net loss on sale of and write down of securities —  (262) —  (262)
Other income 61 58 120 113
Total other income 887 920 2,112 2,826
         
Other expenses:        
Compensation, payroll taxes and fringe benefits 6,973 6,446 13,881 12,034
Advertising 90 118 180 270
Office occupancy and equipment expense  700 672 1,382 1,278
Data processing service fees 400 360 807 675
Federal insurance premiums 331 329 601 616
Real estate owned operations 58 184 110 548
Other expenses 954 954 1,778 1,831
Total other expenses 9,506 9,063 18,739 17,252
         
Income before income tax expense 13,952 11,894 28,634 23,098
Income tax expense  5,206 4,268 10,677 8,137
Net income $ 8,746 $ 7,626 $ 17,957 $ 14,961
         
Income per basic common share $ 0.21  $ 0.18  $ 0.43  $ 0.33
Income per diluted common share  $ 0.20  $ 0.18  $ 0.42  $ 0.32
         

 

  Average Balance Sheet and Yield/Rate Information
  For the Three Months Ended (unaudited)
  December 31, 2012 December 31, 2011
  Average
Outstanding
Balance
Interest
Earned/ 
Paid
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
 Paid
Average
Yield/
Rate
  (Dollars in thousands)
             
Interest-earning assets:            
Loans (1)  $ 2,117,712  $ 29,079 5.49%  $ 1,778,394  $ 26,936 6.06%
Federal Home Loan Bank Stock  41,836 437 4.18%  34,039 281 3.30%
Securities available for sale  11,934 58 1.94%  52,006 304 2.34%
Mortgage backed securities held to maturity  34,869 225 2.58%  35,488 226 2.55%
Mortgage backed securities available for sale  414,692 1,807 1.74%  595,317 2,776 1.87%
Federal funds sold and short term investments  1,573 1 0.25%  1,675 1 0.24%
Total interest-earning assets  2,622,616  31,607 4.82%  2,496,919  30,524 4.89%
Non-interest-earning assets  133,044      107,492    
Total assets  $ 2,755,660      $ 2,604,411    
             
Interest-bearing liabilities:            
Savings deposits  137,876 97 0.28%  154,466 160 0.41%
Money market  448,852 550 0.49%  377,170 677 0.72%
Checking accounts  247,570 138 0.22%  202,910 214 0.42%
Time deposits  520,796 1,350 1.04%  644,642 2,241 1.39%
Total deposits 1,355,095 2,135 0.63% 1,379,188 3,292 0.95%
Borrowings  825,163  5,401 2.62%  666,710  5,195 3.12%
Total interest-bearing liabilities 2,180,258 7,536 1.38% 2,045,898 8,487 1.66%
Non-interest-bearing liabilities  57,939      49,214    
Total liabilities 2,238,197     2,095,112    
Stockholders' equity  517,463      509,299    
Total liabilities and stockholders' equity  $ 2,755,660      $ 2,604,411    
             
Net interest income    $ 24,071      $ 22,037  
Net interest rate spread (2)     3.44%     3.23%
Net interest-earning assets (3)  $ 442,358      $ 451,021    
Net interest margin (4)     3.67%     3.53%
Average of interest-earning assets to interest-bearing liabilities   120.29%     122.05%
             
(1)  Includes nonaccrual loans.
(2)  Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.  
(3)  Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.    
(4)  Net interest margin represents net interest income divided by average total interest-earning assets.    
             

 

  Average Balance Sheet and Yield/Rate Information
  For the Six Months Ended (unaudited)
  December 31, 2012 December 31, 2011
             
  Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate
Average
Outstanding
Balance
Interest
Earned/
Paid
Average
Yield/
Rate
  (Dollars in thousands)
             
Interest-earning assets:            
Loans (1)   $ 2,068,595  $ 58,161 5.62%  $ 1,744,180  $ 52,865 6.06%
Federal Home Loan Bank Stock  40,210  844 4.20%  30,933 580 3.75%
Securities available for sale   16,056  132 1.64%  70,173 686 1.96%
Mortgage backed securities held to maturity   35,349  459 2.60%  36,269 475 2.62%
Mortgage backed securities available for sale   436,818  3,831 1.75%  573,512 5,634 1.96%
Federal funds sold and short term investments  1,584  2 0.25%  20,650 30 0.29%
Total interest-earning assets   2,598,612  63,429 4.88%  2,475,717  60,270 4.87%
Non-interest-earning assets   128,022      107,976    
Total assets   $ 2,726,634      $ 2,583,693    
             
Interest-bearing liabilities:            
Savings deposits   137,929 195 0.28%  153,931 371 0.48%
Money market   446,129 1,109 0.50%  383,107 1,517 0.79%
Checking accounts   243,894 273 0.22%  189,339 426 0.45%
Time deposits  536,470 2,892 1.08%  656,580 4,661 1.42%
Total deposits  1,364,421 4,469 0.66% 1,382,957 6,975 1.01%
Borrowings  789,192  10,699 2.71%  598,923  10,271 3.43%
Total interest-bearing liabilities  2,153,613 15,168 1.41% 1,981,880 17,246 1.74%
Non-interest-bearing liabilities   56,666      49,845    
Total liabilities  2,210,279     2,031,725    
Stockholders' equity   516,355      551,968    
Total liabilities and stockholder's equity   $ 2,726,634      $ 2,583,693    
             
Net interest income     $ 48,261      $ 43,024  
Net interest rate spread (2)     3.47%     3.13%
Net interest-earning assets (3)  $ 444,999      $ 493,837    
Net interest margin (4)     3.71%     3.48%
Average of interest-earning assets to interest-bearing liabilities    120.66%     124.92%
             
(1)  Includes nonaccrual loans.
(2)  Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average  
 interest-bearing liabilities.            
(3)  Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.    
(4)  Net interest margin represents net interest income divided by average total interest-earning assets.    
CONTACT: For further information contact:
         Kevin J. Lynch
         Chairman, President and Chief Executive Officer
         Oritani Financial Corp.
         (201) 664-5400