##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 450 Fifth Street, N.W.
Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Fiscal Year Ended June 30, 2011
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File No. 001-34786
 Oritani Financial Corp.
 (Exact name of registrant as specified in its charter)
 Delaware
    
    30-0628335(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification Number)370 Pascack Road, Township of Washington
    
    07676(Address of Principal Executive Offices)
    
    Zip Code
 (201) 664-5400
 (Registrants telephone number)
  Title of each class
    
    Name of each exchange on which registeredCommon Stock, $0.01 par value
    
    The NASDAQ Stock Market, LLC
 
  o þ
  o þ
 þ o
 o o
 þ
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
  o þ
   DOCUMENTS INCORPORATED BY REFERENCE
 1.
    
    Proxy Statement for the 2011 Annual Meeting of Stockholders of the Registrant (Part
III).




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##### 



Oritani Financial Corp.
2011 Annual Report on Form 10-K
 Index
 PagePart IItem 1. Business
    
    
    2Item 1A. Risk Factors
    
    
    38Item 1B. Unresolved Staff Comments
    
    
    43Item 2. Properties
    
    
    43Item 3. Legal Proceedings
    
    
    43Item 4. Reserved
    
    
    44Part IIItem 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
    
    
    44Item 6. Selected Financial Data
    
    
    46Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    47Item 7A. Quantitative and Qualitative Disclosures About Market Risk
    
    
    63Item 8. Financial Statements and Supplemental Data
    
    
    63Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    64Item 9A. Controls and Procedures
    
    
    64Item 9B. Other Information
    
    
    64Part IIIItem 10. Directors, Executive Officers and Corporate Governance
    
    
    65Item 11. Executive Compensation
    
    
    65Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    
    
    65Item 13 Certain Relationships and Related Transactions, and Director Independence
    
    
    65Item 14. Principal Accountant Fees and Services
    
    
    65Part IVItem 15. Exhibits and Financial Statement Schedules
    
    
    65Signatures
    
    
    115Exhibit 23Exhibit 31.1Exhibit 31.2Exhibit 32




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##### Table of Contents



PART I
 
 ITEM 1.
    
    BUSINESS
 Forward Looking Statements
   Oritani Financial Corp.
   www.oritani.com
  2




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Oritani Bank
 General
   Market Area
     3




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##### Table of Contents



Competition
   Lending Activities
   4




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##### Table of Contents



Loan Portfolio Composition.
 At June 30,2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    Percent(Dollars in thousands)Residential
    
    $
    172,972
    
    
    
    10.1
    %
    
    $
    244,126
    
    
    
    15.9
    %
    
    $
    265,962
    
    
    
    20.4
    %
    
    $
    223,087
    
    
    
    21.8
    
    
    $
    188,941
    
    
    
    24.6
    %Multi-family
    
    
    474,776
    
    
    
    27.8
    
    
    
    360,380
    
    
    
    23.5
    
    
    
    277,589
    
    
    
    21.3
    
    
    
    237,490
    
    
    
    23.2
    
    
    
    210,587
    
    
    
    27.4Commercial real estate
    
    
    901,916
    
    
    
    52.9
    
    
    
    760,076
    
    
    
    49.5
    
    
    
    562,138
    
    
    
    43.3
    
    
    
    359,681
    
    
    
    35.2
    
    
    
    240,544
    
    
    
    31.3Second mortgage and equity loans
    
    
    38,706
    
    
    
    2.3
    
    
    
    48,110
    
    
    
    3.1
    
    
    
    54,769
    
    
    
    4.2
    
    
    
    59,886
    
    
    
    5.8
    
    
    
    65,240
    
    
    
    8.5Construction and land loans
    
    
    86,502
    
    
    
    5.1
    
    
    
    102,137
    
    
    
    6.6
    
    
    
    130,831
    
    
    
    10.0
    
    
    
    138,195
    
    
    
    13.5
    
    
    
    62,704
    
    
    
    8.1Other loans
    
    
    30,571
    
    
    
    1.8
    
    
    
    21,753
    
    
    
    1.4
    
    
    
    10,993
    
    
    
    0.8
    
    
    
    4,880
    
    
    
    0.5
    
    
    
    1,140
    
    
    
    0.1Total loans
    
    
    1,705,443
    
    
    
    100.0
    %
    
    
    1,536,582
    
    
    
    100.0
    %
    
    
    1,302,282
    
    
    
    100.0
    %
    
    
    1,023,219
    
    
    
    100.0
    
    
    
    769,156
    
    
    
    100.0
    %Other items:Net deferred loan origination fees
    
    
    6,080
    
    
    
    
    
    
    
    4,800
    
    
    
    
    
    
    
    2,979
    
    
    
    
    
    
    
    2,610
    
    
    
    
    
    
    
    1,732Allowance for loan losses
    
    
    26,514
    
    
    
    
    
    
    
    25,902
    
    
    
    
    
    
    
    20,680
    
    
    
    
    
    
    
    13,532
    
    
    
    
    
    
    
    8,882Total loans, net
    
    $
    1,672,849
    
    
    
    
    
    
    $
    1,505,880
    
    
    
    
    
    
    $
    1,278,623
    
    
    
    
    
    
    $
    1,007,077
    
    
    
    
    
    
    $
    758,542
 Loan Portfolio Maturities and Yields.
 Residential
    
    
    Multi-family
    
    
    Commercial
    
    
    Second Mortgage
    
    
    Construction and Land
    
    
    Other Loans
    
    
    TotalWeighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedAmount
    
    

Average Rate
    
    
    Amount
    
    

Average Rate
    
    
    Amount
    
    

Average Rate
    
    
    Amount
    
    

Average Rate
    
    
    Amount
    
    

Average Rate
    
    
    Amount
    
    

Average Rate
    
    
    Amount
    
    

Average Rate(Dollars in thousands)Due During the Years Ending June 30,2012
    
    
    224
    
    
    
    5.42
    
    
    
    2,439
    
    
    
    6.08
    
    
    
    48,390
    
    
    
    6.03
    
    
    
    91
    
    
    
    5.48
    
    
    
    65,654
    
    
    
    6.52
    
    
    
    6,917
    
    
    
    2.82
    
    
    
    123,715
    
    
    
    6.112013
    
    
    5,426
    
    
    
    5.37
    
    
    
    564
    
    
    
    7.30
    
    
    
    16,186
    
    
    
    6.47
    
    
    
    421
    
    
    
    5.66
    
    
    
    6,915
    
    
    
    3.31
    
    
    
    10,208
    
    
    
    6.12
    
    
    
    39,720
    
    
    
    5.682014 to 2015
    
    
    7,320
    
    
    
    5.20
    
    
    
    26,890
    
    
    
    6.13
    
    
    
    58,583
    
    
    
    6.22
    
    
    
    2,420
    
    
    
    5.08
    
    
    
    846
    
    
    
    6.00
    
    
    
    3,476
    
    
    
    5.83
    
    
    
    99,535
    
    
    
    6.082016 to 2020
    
    
    21,879
    
    
    
    5.05
    
    
    
    143,561
    
    
    
    5.79
    
    
    
    420,275
    
    
    
    6.31
    
    
    
    8,832
    
    
    
    5.34
    
    
    
    1,757
    
    
    
    6.15
    
    
    
    2
    
    
    
    5.50
    
    
    
    596,306
    
    
    
    6.122021 to 2025.
    
    
    21,480
    
    
    
    5.35
    
    
    
    150,538
    
    
    
    5.39
    
    
    
    204,684
    
    
    
    5.85
    
    
    
    10,688
    
    
    
    5.33
    
    
    
    
    
    
    
    0.00
    
    
    
    9,000
    
    
    
    5.88
    
    
    
    396,390
    
    
    
    5.632026 and beyond
    
    
    116,643
    
    
    
    5.58
    
    
    
    150,784
    
    
    
    5.80
    
    
    
    153,798
    
    
    
    6.36
    
    
    
    16,254
    
    
    
    5.73
    
    
    
    11,330
    
    
    
    6.34
    
    
    
    968
    
    
    
    6.27
    
    
    
    449,777
    
    
    
    5.95Total
    
    $
    172,972
    
    
    
    5.46
    %
    
    $
    474,776
    
    
    
    5.69
    %
    
    $
    901,916
    
    
    
    6.20
    %
    
    $
    38,706
    
    
    
    5.49
    %
    
    $
    86,502
    
    
    
    6.23
    %
    
    $
    30,571
    
    
    
    5.27
    %
    
    $
    1,705,443
    
    
    
    5.95
    %
  5




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##### Table of Contents



Due After June 30, 2012Fixed
    
    
    Adjustable
    
    
    Total(In thousands)Residential
    
    $
    138,585
    
    
    $
    34,162
    
    
    $
    172,747Multi-family
    
    
    156,840
    
    
    
    315,497
    
    
    
    472,337Commercial estate Loans
    
    
    397,301
    
    
    
    456,227
    
    
    
    853,528Second mortgage and equity loans
    
    
    30,126
    
    
    
    8,489
    
    
    
    38,615Construction and land loans
    
    
    14,215
    
    
    
    6,632
    
    
    
    20,847Other loans
    
    
    10,988
    
    
    
    12,666
    
    
    
    23,654Total loans
    
    $
    748,055
    
    
    $
    833,673
    
    
    $
    1,581,728
 Loans:
 Residential Loans.
    6




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##### Table of Contents



Multifamily and Commercial Real Estate Loans.
   7




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##### Table of Contents



Second Mortgage and Equity Loans The Wall Street Journal
  Construction Loans.
    8




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##### Table of Contents



Other Loans.
 Loan Originations, Purchases, Sales, Participations and Servicing of Loans.
    Non-performing and Problem Assets
   9




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##### Table of Contents



Non-Performing Assets and Restructured Loans .
 At June 30,2011(1)
    
    
    2010
    
    
    2009((2)
    
    
    2008(3)
    
    
    2007(Dollars in thousands)Non-accrual loans:Residential
    
    $
    1,005
    
    
    $
    55
    
    
    $
    98
    
    
    $
    67
    
    
    $
    Multifamily
    
    
    549
    
    
    
    
    
    
    
    6,291
    
    
    
    
    
    
    
    Commercial real estate
    
    
    3,456
    
    
    
    17,835
    
    
    
    25,685
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    263
    
    
    
    62
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    8,332
    
    
    
    20,173
    
    
    
    20,391
    
    
    
    14,143
    
    
    
    Other loans
    
    
    1,698
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total non-accrual loans
    
    $
    15,303
    
    
    $
    38,125
    
    
    $
    52,465
    
    
    $
    14,210
    
    
    $
    Loans greater than 90 days delinquent
and still accruing
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Total non-performing loans
    
    $
    15,303
    
    
    $
    38,125
    
    
    $
    52,465
    
    
    $
    14,210
    
    
    $
    Real estate owned
    
    
    3,967
    
    
    
    3,031
    
    
    
    
    
    
    
    
    
    
    
    Total non-performing assets
    
    $
    19,270
    
    
    $
    41,156
    
    
    $
    52,465
    
    
    $
    14,210
    
    
    $
    Ratios:Non-performing loans to total loans
    
    
    0.90
    %
    
    
    2.48
    %
    
    
    4.03
    %
    
    
    1.39
    %
    
    
    
    %Non-performing assets to total assets
    
    
    0.74
    %
    
    
    1.66
    %
    
    
    2.74
    %
    
    
    0.98
    %
    
    
    
    %
 
 (1)
    
    Two construction loans totaling $4.9 million and one other loan totaling $1.5
million were less than 30 days delinquent at June 30, 2011 and were classified as
non-accrual.(2)
    
    Two construction loans totaling $4.2 million were less than 60 days delinquent at
June 30, 2009 and were classified as non-accrual.(3)
    
    One construction loan totaling $335,000 was less than 60 days delinquent at June
30, 2008 and was classified as non-accrual.   10




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Delinquent Loans
 Loans Delinquent For60-89 Days
    
    
    90 Days and Over
    
    
    TotalNumber
    
    
    Amount
    
    
    Number
    
    
    Amount
    
    
    Number
    
    
    Amount(Dollars in thousands)At June 30, 2011Residential
    
    
    4
    
    
    $
    1,087
    
    
    
    4
    
    
    $
    1,005
    
    
    
    8
    
    
    $
    2,092Multifamily
    
    
    2
    
    
    
    3,810
    
    
    
    3
    
    
    
    550
    
    
    
    5
    
    
    
    4,360Commercial real estate
    
    
    1
    
    
    
    307
    
    
    
    6
    
    
    
    3,456
    
    
    
    7
    
    
    
    3,763Second mortgage and equity loans
    
    
    2
    
    
    
    123
    
    
    
    3
    
    
    
    263
    
    
    
    5
    
    
    
    386Construction and land loans
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    8,332
    
    
    
    4
    
    
    
    8,332Other loans
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    1,697
    
    
    
    3
    
    
    
    1,697Total
    
    
    9
    
    
    $
    5,327
    
    
    
    23
    
    
    $
    15,303
    
    
    
    32
    
    
    $
    20,630At June 30, 2010Residential
    
    
    4
    
    
    $
    762
    
    
    
    1
    
    
    $
    55
    
    
    
    5
    
    
    $
    817Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    4
    
    
    
    2,105
    
    
    
    3
    
    
    
    17,835
    
    
    
    7
    
    
    
    19,940Second mortgage and equity loans
    
    
    1
    
    
    
    19
    
    
    
    1
    
    
    
    62
    
    
    
    2
    
    
    
    81Construction and land loans
    
    
    1
    
    
    
    1,743
    
    
    
    5
    
    
    
    20,173
    
    
    
    6
    
    
    
    21,916Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    10
    
    
    $
    4,629
    
    
    
    10
    
    
    $
    38,125
    
    
    
    20
    
    
    $
    42,754At June 30, 2009Residential
    
    
    1
    
    
    $
    197
    
    
    
    2
    
    
    $
    98
    
    
    
    3
    
    
    $
    295Multifamily
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    6,291
    
    
    
    2
    
    
    
    6,291Commercial real estate
    
    
    3
    
    
    
    17,209
    
    
    
    6
    
    
    
    25,685
    
    
    
    9
    
    
    
    42,894Second mortgage and equity loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    1
    
    
    
    419
    
    
    
    6
    
    
    
    20,391
    
    
    
    7
    
    
    
    20,810Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    5
    
    
    $
    17,825
    
    
    
    16
    
    
    $
    47,839
    
    
    
    21
    
    
    $
    65,664At June 30, 2008Residential
    
    
    
    
    
    $
    
    
    
    
    2
    
    
    $
    68
    
    
    
    2
    
    
    $
    68Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    1
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    18Construction and land loans
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    13,808
    
    
    
    2
    
    
    
    13,808Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    1
    
    
    $
    18
    
    
    
    4
    
    
    $
    13,876
    
    
    
    5
    
    
    $
    13,894At June 30, 2007Residential
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    1
    
    
    
    39
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    39Construction and land loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    1
    
    
    $
    39
    
    
    
    
    
    
    $
    
    
    
    
    1
    
    
    $
    39
   11




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##### Table of Contents



Real Estate Owned
 Classified Assets.
   Classified Assets AtJune 30, 2011
    
    
    June 30, 2010
    
    
    June 30, 2009Number
    
    
    Amount
    
    
    Number
    
    
    Amount
    
    
    Number
    
    
    AmountSubstandard assets:Residential
    
    
    4
    
    
    $
    1,005
    
    
    
    1
    
    
    $
    55
    
    
    
    2
    
    
    $
    109Multi-family loans
    
    
    3
    
    
    
    3,979
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    7,602Commercial real estate loans
    
    
    9
    
    
    
    8,590
    
    
    
    9
    
    
    
    25,219
    
    
    
    9
    
    
    
    28,827Second mortgage and equity loans
    
    
    3
    
    
    
    263
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    8
    
    
    
    15,195
    
    
    
    11
    
    
    
    31,424
    
    
    
    4
    
    
    
    19,273Other loans
    
    
    3
    
    
    
    1,698
    
    
    
    2
    
    
    
    699
    
    
    
    
    
    
    
    Total
    
    
    30
    
    
    $
    30,730
    
    
    
    23
    
    
    $
    57,397
    
    
    
    20
    
    
    $
    55,811
   12




---



##### Table of Contents



Impaired Loans
 Allowance for Loan Losses
     
    
    changes in local, regional, national, and international economic and business
conditions and developments that affect the collectibility of our portfolio, including
the condition of various market segments;
    
    changes in the nature and volume of our portfolio and in the terms of our loans;
    
    changes in the experience, ability, and depth of lending management and other relevant
staff;
  13




---



##### Table of Contents




    
    changes in the volume and severity of past due loans, the volume of nonaccrual
loans, and the volume and severity of adversely classified or graded loans;
    
    changes in the quality of our loan review system;
    
    changes in the value of underlying collateral for collateral-dependent loans;
    
    the existence and effect of any concentrations of credit, and changes in the
level of such concentrations; and
    
    the effect of other external factors such as competition and legal and
regulatory requirements on the level of estimated credit losses in our existing
portfolio
      14




---



##### Table of Contents



Allowance for Loan Losses .
 At or For the Years Ended June 30,2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007(Dollars in thousands)Balance at beginning of period
    
    $
    25,902
    
    
    $
    20,680
    
    
    $
    13,532
    
    
    $
    8,882
    
    
    $
    7,672Charge-offs:Conventional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Multifamily
    
    
    
    
    
    
    16
    
    
    
    260
    
    
    
    
    
    
    
    Commercial real estate
    
    
    3,018
    
    
    
    1,196
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    5,750
    
    
    
    3,526
    
    
    
    2,250
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    43
    
    
    
    222
    
    
    
    
    
    
    
    Total charge-offs
    
    
    8,768
    
    
    
    4,781
    
    
    
    2,732
    
    
    
    
    
    
    
    Recoveries:Conventional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Multifamily
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commercial real estate
    
    
    80
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Second mortgage and equity loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Construction and land loans
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    Other loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total recoveries
    
    
    80
    
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    Net charge-offs
    
    
    (8,688
    )
    
    
    (4,778
    )
    
    
    (2,732
    )
    
    
    
    
    
    
    Provision for loan losses
    
    
    9,300
    
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650
    
    
    
    1,210Balance at end of year
    
    $
    26,514
    
    
    $
    25,902
    
    
    $
    20,680
    
    
    $
    13,532
    
    
    $
    8,882Ratios:Net charge-offs to average loans
outstanding (annualized)
    
    
    0.54
    %
    
    
    0.35
    %
    
    
    0.23
    %
    
    
    
    %
    
    
    
    %Allowance for loan losses to total
loans at end of period
    
    
    1.55
    %
    
    
    1.69
    %
    
    
    1.59
    %
    
    
    1.32
    %
    
    
    1.15
    %
 Allocation of Allowance for Loan Losses.
 At June 30,2011
    
    
    2010
    
    
    2009Percent of Loans
    
    
    
    
    
    
    Percent of
    
    
    
    
    
    
    Percent ofAllowance
    
    
    in Each
    
    
    Allowance
    
    
    Loans in Each
    
    
    Allowance
    
    
    Loans in Eachfor Loan
    
    
    Category to
    
    
    for Loan
    
    
    Category to
    
    
    for Loan
    
    
    Category toLosses
    
    
    Total Loans
    
    
    Losses
    
    
    Total Loans
    
    
    Losses
    
    
    Total Loans(Dollars in thousands)Conventional
    
    $
    1,274
    
    
    
    10.1
    %
    
    $
    1,390
    
    
    
    15.9
    %
    
    $
    1,012
    
    
    
    20.4
    %Multifamily
    
    
    2,703
    
    
    
    27.8
    
    
    
    2,175
    
    
    
    23.5
    
    
    
    2,912
    
    
    
    21.3Commercial real estate
    
    
    15,597
    
    
    
    52.9
    
    
    
    15,295
    
    
    
    49.5
    
    
    
    9,683
    
    
    
    43.3Second mortgage and equity loans
    
    
    369
    
    
    
    2.3
    
    
    
    421
    
    
    
    3.1
    
    
    
    274
    
    
    
    4.2Construction and land loans
    
    
    3,455
    
    
    
    5.1
    
    
    
    4,595
    
    
    
    6.6
    
    
    
    5,791
    
    
    
    10.0Other loans
    
    
    1,625
    
    
    
    1.8
    
    
    
    482
    
    
    
    1.4
    
    
    
    268
    
    
    
    0.8Unallocated
    
    
    1,491
    
    
    
    
    
    
    
    1,544
    
    
    
    
    
    
    
    740
    
    
    
    Total
    
    $
    26,514
    
    
    
    100.0
    %
    
    $
    25,902
    
    
    
    100.0
    %
    
    $
    20,680
    
    
    
    100.0
    %
  15




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##### Table of Contents



At June 30,2008
    
    
    2007Allowance
    
    
    Percent of Loans
    
    
    
    
    
    
    Percent of Loansfor Loan
    
    
    in Each Category
    
    
    Allowance for
    
    
    in Each CategoryLosses
    
    
    to Total Loans
    
    
    Loan Losses
    
    
    to Total Loans(Dollars in thousands)Conventional
    
    $
    845
    
    
    
    21.8
    %
    
    $
    709
    
    
    
    24.6
    %Multifamily
    
    
    2,535
    
    
    
    23.2
    
    
    
    2,254
    
    
    
    27.4Commercial real estate
    
    
    5,560
    
    
    
    35.2
    
    
    
    3,889
    
    
    
    31.3Second mortgage and equity
loans
    
    
    299
    
    
    
    5.8
    
    
    
    326
    
    
    
    8.5Construction and land loans
    
    
    3,883
    
    
    
    13.5
    
    
    
    979
    
    
    
    8.1Other loans
    
    
    92
    
    
    
    0.5
    
    
    
    15
    
    
    
    0.1Unallocated
    
    
    318
    
    
    
    
    
    
    
    710
    
    
    
    Total
    
    $
    13,532
    
    
    
    100.0
    %
    
    $
    8,882
    
    
    
    100.0
    %
  Investments
     16




---



##### Table of Contents



U.S. Government and Federal Agency Obligations.
 Corporate Bonds
 Equity Securities.
 Mortgage-Backed Securities.
    17




---



##### Table of Contents



Securities Portfolios.
 Securities and Mortgage-Backed Securities Held to Maturity
 At June 30,2011
    
    
    2010
    
    
    2009Amortized
    
    
    
    
    
    
    Amortized
    
    
    
    
    
    
    AmortizedCost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value(In thousands)Mortgage-backed securities:Freddie Mac
    
    $
    7,546
    
    
    $
    7,948
    
    
    $
    11,449
    
    
    $
    12,015
    
    
    $
    18,783
    
    
    $
    19,063Ginnie Mae
    
    
    3,425
    
    
    
    3,490
    
    
    
    2,282
    
    
    
    2,316
    
    
    
    5,161
    
    
    
    5,157Fannie Mae
    
    
    22,413
    
    
    
    22,743
    
    
    
    21,593
    
    
    
    22,348
    
    
    
    31,329
    
    
    
    31,943Collateralized mortgage
obligations
    
    
    4,225
    
    
    
    4,341
    
    
    
    31,144
    
    
    
    31,943
    
    
    
    63,544
    
    
    
    64,218Total securities held to maturity
    
    $
    37,609
    
    
    $
    38,522
    
    
    $
    66,468
    
    
    $
    68,622
    
    
    $
    18,817
    
    
    $
    20,381
 Securities and Mortgage-Backed Securities Available for Sale
 At June 30,2011
    
    
    2010
    
    
    2009Amortized
    
    
    
    
    
    
    Amortized
    
    
    
    
    
    
    AmortizedCost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value
    
    
    Cost
    
    
    Fair Value(In thousands)United States Government and
federal agency obligations
    
    $
    88,355
    
    
    $
    87,884
    
    
    $
    347,470
    
    
    $
    349,959
    
    
    $
    134,754
    
    
    $
    134,837Corporate bonds
    
    
    2,000
    
    
    
    2,021
    
    
    
    2,000
    
    
    
    2,072
    
    
    
    2,000
    
    
    
    2,156Mutual funds
    
    
    
    
    
    
    
    
    
    
    4,671
    
    
    
    4,937
    
    
    
    5,636
    
    
    
    5,676Equity securities
    
    
    1,472
    
    
    
    1,537
    
    
    
    1,763
    
    
    
    1,755
    
    
    
    1,965
    
    
    
    1,750Mortgage-backed securities:Freddie Mac
    
    
    9,448
    
    
    
    10,118
    
    
    
    17,988
    
    
    
    19,061
    
    
    
    26,979
    
    
    
    27,875Fannie Mae
    
    
    75,789
    
    
    
    77,026
    
    
    
    22,869
    
    
    
    24,020
    
    
    
    27,023
    
    
    
    27,911Ginnie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,537
    
    
    
    2,557Collateralized mortgage
obligations
    
    
    414,443
    
    
    
    418,788
    
    
    
    34,399
    
    
    
    35,396
    
    
    
    68,571
    
    
    
    70,260Total securities available for sale
    
    $
    591,507
    
    
    $
    597,374
    
    
    $
    431,160
    
    
    $
    437,200
    
    
    $
    269,465
    
    
    $
    273,022
  18




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##### Table of Contents



Portfolio Maturities and Yields.
 More than One Year
    
    
    More than Five Yearsthrough Five Years
    
    
    through Ten Years
    
    
    More than Ten Years
    
    
    Total SecuritiesOne Year or Less
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    
    
    
    
    WeightedAmortized
    
    
    Weighted
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    Average
    
    
    Amortized
    
    
    
    
    
    
    AverageCost
    
    
    Average Yield
    
    
    Cost
    
    
    Yield
    
    
    Cost
    
    
    Yield
    
    
    Cost
    
    
    Yield
    
    
    Cost
    
    
    Fair Value
    
    
    Yield(Dollars in thousands)Mortgage-backed securities:Freddie Mac
    
    $
    
    
    
    
    
    
    
    $
    741
    
    
    
    4.01
    %
    
    $
    
    
    
    
    
    
    
    $
    6,805
    
    
    
    3.25
    %
    
    $
    7,546
    
    
    $
    7,949
    
    
    
    3.32
    %Ginnie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,425
    
    
    
    3.07
    
    
    
    3,425
    
    
    
    3,490
    
    
    
    3.07Fannie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,072
    
    
    
    2.83
    
    
    
    17,341
    
    
    
    2.50
    
    
    
    22,413
    
    
    
    22,742
    
    
    
    2.58Collateralized mortgage obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,225
    
    
    
    3.73
    
    
    
    
    
    
    
    
    
    
    
    4,225
    
    
    
    4,341
    
    
    
    3.73Total securities held to maturity
    
    $
    
    
    
    
    
    
    
    $
    741
    
    
    
    4.01
    %
    
    $
    9,297
    
    
    
    3.24
    %
    
    $
    27,571
    
    
    
    2.76
    %
    
    $
    37,609
    
    
    $
    38,522
    
    
    
    2.91United States Government and federal
agency obligations
    
    $
    
    
    
    
    
    
    
    $
    74,866
    
    
    
    1.58
    %
    
    $
    13,489
    
    
    
    1.00
    %
    
    $
    
    
    
    
    
    %
    
    $
    88,355
    
    
    $
    87,884
    
    
    
    1.49
    %Corporate bonds
    
    
    2,000
    
    
    
    8.09
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,000
    
    
    
    2,021
    
    
    
    8.09Equity securities
    
    
    1,472
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,472
    
    
    
    1,537
    
    
    
    Mortgage-backed securities:Freddie Mac
    
    
    1,065
    
    
    
    5.00
    
    
    
    
    
    
    
    
    
    
    
    7,954
    
    
    
    4.71
    
    
    
    429
    
    
    
    3.34
    
    
    
    9,448
    
    
    
    10,118
    
    
    
    4.68Fannie Mae
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    71,431
    
    
    
    3.33
    
    
    
    4,358
    
    
    
    4.94
    
    
    
    75,789
    
    
    
    77,026
    
    
    
    3.42Collateralized mortgage obligations
    
    
    
    
    
    
    
    
    
    
    2,280
    
    
    
    5.23
    
    
    
    220,108
    
    
    
    2.33
    
    
    
    192,055
    
    
    
    2.61
    
    
    
    414,443
    
    
    
    418,788
    
    
    
    2.43Total securities available for sale
    
    $
    4,537
    
    
    
    4.74
    %
    
    $
    77,146
    
    
    
    1.69
    %
    
    $
    312,982
    
    
    
    2.56
    %
    
    $
    196,842
    
    
    
    2.49
    %
    
    $
    591,507
    
    
    $
    597,374
    
    
    
    2.47
    %
  19




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##### Table of Contents



Sources of Funds
 General.
 Deposits.
    At June 30,2011
    
    
    2010Weighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    
    
    
    
    AverageBalance
    
    
    Percent
    
    
    Rate
    
    
    Balance
    
    
    Percent
    
    
    Rate(Dollars in thousands)Deposit type:Checking accounts
    
    $
    162,147
    
    
    
    11.74
    %
    
    
    0.42
    %
    
    $
    131,029
    
    
    
    10.16
    %
    
    
    0.71
    %Money market accounts
    
    
    390,684
    
    
    
    28.28
    
    
    
    1.01
    
    
    
    297,540
    
    
    
    23.07
    
    
    
    1.07Savings accounts
    
    
    152,906
    
    
    
    11.07
    
    
    
    0.55
    
    
    
    146,675
    
    
    
    11.37
    
    
    
    0.68Time deposits
    
    
    675,573
    
    
    
    48.91
    
    
    
    1.48
    
    
    
    714,502
    
    
    
    55.40
    
    
    
    1.76Total deposits
    
    $
    1,381,310
    
    
    
    100.00
    %
    
    
    1.12
    %
    
    $
    1,289,746
    
    
    
    100.00
    %
    
    
    1.37
    %
  20




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##### Table of Contents



At June 30,2009
    
    
    2008Weighted
    
    
    
    
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    
    
    
    
    AverageBalance
    
    
    Percent
    
    
    Rate
    
    
    Balance
    
    
    Percent
    
    
    Rate(Dollars in thousands)
    
    
    (Dollars in thousands)Deposit type:Checking accounts
    
    $
    88,759
    
    
    
    7.87
    %
    
    
    0.90
    %
    
    $
    73,949
    
    
    
    10.58
    %
    
    
    0.89
    %Money market accounts
    
    
    199,965
    
    
    
    17.73
    
    
    
    2.07
    
    
    
    57,117
    
    
    
    8.17
    
    
    
    2.92Savings accounts
    
    
    147,669
    
    
    
    13.10
    
    
    
    1.04
    
    
    
    149,062
    
    
    
    21.33
    
    
    
    1.35Time deposits
    
    
    691,237
    
    
    
    61.30
    
    
    
    2.84
    
    
    
    418,804
    
    
    
    59.92
    
    
    
    3.84Total deposits
    
    $
    1,127,630
    
    
    
    100.00
    %
    
    
    2.32
    %
    
    $
    698,932
    
    
    
    100.00
    %
    
    
    2.92
    %
  AtJune 30, 2011(In thousands)Three months or less
    
    $
    83,492Over three months through six months
    
    
    48,133Over six months through one year
    
    
    69,096Over one year to three years
    
    
    48,690Over three years
    
    
    27,348Total
    
    $
    276,759
 Borrowings.
  At or For the Years Ended June 30,2011
    
    
    2010
    
    
    2009(Dollars in thousands)Balance at end of period
    
    $
    509,315
    
    
    $
    495,552
    
    
    $
    508,991Average balance during period
    
    $
    521,541
    
    
    $
    506,592
    
    
    $
    505,599Maximum outstanding at any month end
    
    $
    621,680
    
    
    $
    529,004
    
    
    $
    544,238Weighted average interest rate at end of period
    
    
    3.77
    %
    
    
    4.00
    %
    
    
    3.96
    %Average interest rate during period
    
    
    3.95
    %
    
    
    4.10
    %
    
    
    4.00
    %
  21




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##### Table of Contents



Ormon LLC
  Investments in Real Estate
 Park Lane Associates
 Park View Apartments
 Winstead Village
 Parkway East
  22




---



##### Table of Contents



Marine View Apartments
   Investments in Joint Ventures
 Oaklyn Associates
 Madison Associates
 Brighton Court Associates
 Plaza 23 Associates
 Oritani, LLC
  Investments in Joint Ventures
 Ridge Manor Associates
 Van Buren Apartments
  23




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##### Table of Contents



10 Landing Lane
 FAO Hasbrouck Heights
 FAO Terrace Associates
 FAO Gardens Associates
 River Villas Mews, LLC
   Hampshire Realty
  24




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##### Table of Contents



Book
    
    
    Year Ended June 30, 2011
    
    
    BookValue at
    
    
    Profit /
    
    
    Distributions
    
    
    Additional
    
    
    Value atProperty Name
    
    June 30, 2010
    
    
    (Loss)
    
    
    Received
    
    
    Investment
    
    
    June 30, 2011Real Estate Held For InvestmentOrmon, LLC  Undivided Interests in Real EstatePark Lane
    
    $
    (486
    )
    
    $
    406
    
    
    $
    (317
    )
    
    $
    
    
    
    $
    (397
    )Park View
    
    
    (383
    )
    
    
    76
    
    
    
    (28
    )
    
    
    
    
    
    
    (335
    )Winstead Village
    
    
    (207
    )
    
    
    37
    
    
    
    (50
    )
    
    
    
    
    
    
    (220
    )Parkway East
    
    
    (342
    )
    
    
    91
    
    
    
    (100
    )
    
    
    
    
    
    
    (350
    )Marine View
    
    
    890
    
    
    
    206
    
    
    
    (244
    )
    
    
    
    
    
    
    852Ormon, LLC  Wholly Owned PropertiesPalisades Park(1)
    
    
    331
    
    
    
    383
    
    
    
    
    
    
    
    
    
    
    
    714Real Estate Held For Investment SummaryAssets(1)
    
    $
    1,221
    
    
    $
    589
    
    
    $
    (244
    )
    
    $
    
    
    
    $
    1,566Liabilities
    
    $
    (1,418
    )
    
    $
    610
    
    
    $
    (495
    )
    
    $
    
    
    
    $
    (1,302
    )Investments in Joint VenturesOrmon, LLCOaklyn Associates
    
    $
    (199
    )
    
    $
    68
    
    
    $
    (48
    )
    
    $
    
    
    
    $
    (179
    )Madison Associates
    
    
    (47
    )
    
    
    71
    
    
    
    (80
    )
    
    
    
    
    
    
    (55
    )Brighton Court Associates
    
    
    107
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    107Plaza 23 Associates
    
    
    3,000
    
    
    
    536
    
    
    
    (769
    )
    
    
    150
    
    
    
    2,917Oritani, LLCRidge Manor Associates
    
    
    505
    
    
    
    (24
    )
    
    
    (33
    )
    
    
    
    
    
    
    449Van Buren Apartments
    
    
    138
    
    
    
    26
    
    
    
    (38
    )
    
    
    
    
    
    
    12610 Landing Lane
    
    
    (309
    )
    
    
    180
    
    
    
    (190
    )
    
    
    
    
    
    
    (319
    )FAO Hasbrouck Heights
    
    
    329
    
    
    
    11
    
    
    
    (36
    )
    
    
    
    
    
    
    304FAO Terrace Associates
    
    
    569
    
    
    
    (6
    )
    
    
    (30
    )
    
    
    
    
    
    
    533FAO Gardens
    
    
    419
    
    
    
    (5
    )
    
    
    (10
    )
    
    
    
    
    
    
    404River Villas Mews, LLC
    
    
    394
    
    
    
    (11
    )
    
    
    
    
    
    
    
    
    
    
    383Hampshire FinancialHampshire Realty
    
    
    99
    
    
    
    11
    
    
    
    (23
    )
    
    
    
    
    
    
    87Investments in Joint Ventures SummaryAssets
    
    $
    5,562
    
    
    $
    538
    
    
    $
    (939
    )
    
    $
    150
    
    
    $
    5,309Liabilities
    
    $
    (555
    )
    
    $
    319
    
    
    $
    (318
    )
    
    $
    
    
    
    $
    (553
    )
 
 (1)
    
    The book values for wholly owned properties represent the costs of the fixed
assets associated with the property, less accumulated depreciation.  25




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##### Table of Contents



Personnel
  SUPERVISION AND REGULATION
 General
     New Jersey Banking Regulation
 Activity Powers.
 (1)
    
    real estate mortgages;(2)
    
    consumer and commercial loans;(3)
    
    specific types of debt securities, including certain corporate debt securities
and obligations of federal, state and local governments and agencies;(4)
    
    certain types of corporate equity securities; and(5)
    
    certain other assets.
  26




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##### Table of Contents



Loans-to-One-Borrower Limitations.
 Dividends.
 Minimum Capital Requirements.
 Examination and Enforcement.
 Federal Banking Regulation
 Capital Requirements.
  
    
    common stockholders equity, excluding the unrealized appreciation or
depreciation, net of tax, from available for sale securities;
    
    non-cumulative perpetual preferred stock, including any related retained
earnings; and
    
    minority interests in consolidated subsidiaries minus all intangible assets,
other than qualifying servicing rights and any net unrealized loss on marketable
equity securities.
  27




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##### Table of Contents




    
    cumulative perpetual preferred stock;
    
    certain perpetual preferred stock for which the dividend rate may be reset
periodically;
    
    hybrid capital instruments, including mandatory convertible securities;
    
    term subordinated debt;
    
    intermediate term preferred stock;
    
    allowance for loan losses; and
    
    up to 45% of pretax net unrealized holding gains on available for sale equity
securities with readily determinable fair market values.
    
    
    the quality of the banks interest rate risk management process;
    
    the overall financial condition of the bank; and
    
    the level of other risks at the bank for which capital is needed.
  As of June 30, 2011Percent ofCapital
    
    
    Assets(1)(Dollars in thousands)Core capital
    
    
    415,516
    
    
    
    16.41
    %Tier 1 risk-based capital
    
    
    415,516
    
    
    
    22.55
    %Total risk-based capital
    
    
    438,588
    
    
    
    23.81
    %
 
 (1)
    
    For purposes of calculating Core capital, assets are based on adjusted total leverage assets.
In calculating Tier 1 risk-based capital and total risk-based capital, assets are based on
total risk-weighted assets.   28




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##### Table of Contents



Prompt Corrective Action.
  
    
    its ratio of total capital to risk-weighted assets is at least 10%;
    
    its ratio of Tier 1 capital to risk-weighted assets is at least 6%; and
    
    its ratio of Tier 1 capital to total assets is at least 5%, and it is not
subject to any order or directive by the FDIC to meet a specific capital level.
  
    
    its ratio of total capital to risk-weighted assets is at least 8%; or
    
    its ratio of Tier 1 capital to risk-weighted assets is at least 4%; and
    
    its ratio of Tier 1 capital to total assets is at least 4% (3% if the bank
receives the highest rating under the Uniform Financial Institutions Rating System)
and it is not a well-capitalized institution.
  
    
    its total risk-based capital is less than 8%; or
    
    its Tier 1 risk-based-capital is less than 4%; and
    
    its leverage ratio is less than 4% (or less than 3% if the institution receives
the highest rating under the Uniform Financial Institutions Rating System).
  
    
    its total risk-based capital is less than 6%;
    
    its Tier 1 capital is less than 3%; or
    
    its leverage ratio is less than 3%.
   
    
    insolvency, or when the assets of the bank are less than its liabilities to
depositors and others;
    
    substantial dissipation of assets or earnings through violations of law or
unsafe or unsound practices;
    
    existence of an unsafe or unsound condition to transact business;
    
    likelihood that the bank will be unable to meet the demands of its depositors or
to pay its obligations in the normal course of business; and
    
    insufficient capital, or the incurring or likely incurring of losses that will
deplete substantially all of the institutions capital with no reasonable prospect
of replenishment of capital without federal assistance.
 Activity Restrictions on State-Chartered Banks.
  29




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##### Table of Contents



Insurance of Deposit Accounts.
       30




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##### Table of Contents



Federal Home Loan Bank System.
 Enforcement.
 Transactions with Affiliates of Oritani Bank.
  
    
    limits the extent to which the bank or its subsidiaries may engage in covered
transactions with any one affiliate to an amount equal to 10% of such banks
capital stock and retained earnings, and limits all such transactions with all
affiliates to an amount equal to 20% of such capital stock and retained earnings;
and
    
    requires that all such transactions be on terms that are consistent with safe
and sound banking practices.
  Prohibitions Against Tying Arrangements.
 Privacy Standards.
   31




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##### Table of Contents



Community Reinvestment Act and Fair Lending Laws.
 
    
    a lending test, to evaluate the institutions record of making loans in its
service areas;
    
    an investment test, to evaluate the institutions record of investing in
community development projects, affordable housing, and programs benefiting low or
moderate income individuals and businesses; and
    
    a service test, to evaluate the institutions delivery of services through its
branches, ATMs and other offices.
   Loans to a Banks Insiders
 Federal Regulation.
   32




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##### Table of Contents



New Jersey Regulation.
 Other Regulations
  
    
    Truth-In-Lending Act, governing disclosures of credit terms to consumer
borrowers;
    
    Home Mortgage Disclosure Act of 1975, requiring financial institutions to
provide information to enable the public and public officials to determine whether
a financial institution is fulfilling its obligation to help meet the housing needs
of the community it serves;
    
    Equal Credit Opportunity Act, prohibiting discrimination on the basis of race,
creed or other prohibited factors in extending credit;
    
    Fair Credit Reporting Act of 1978, governing the use and provision of
information to credit reporting agencies;
    
    Fair Debt Collection Act, governing the manner in which consumer debts may be
collected by collection agencies; and
    
    rules and regulations of the various federal agencies charged with the
responsibility of implementing such federal laws.
  
    
    Right to Financial Privacy Act, which imposes a duty to maintain confidentiality
of consumer financial records and prescribes procedures for complying with
administrative subpoenas of financial records;
    
    Electronic Funds Transfer Act and Regulation E promulgated thereunder, which
govern automatic deposits to and withdrawals from deposit accounts and customers
rights and liabilities arising from the use of automated teller machines and other
electronic banking services;
    
    Check Clearing for the 21st Century Act (also known as Check 21),
which gives substitute checks, such as digital check images and copies made from
that image, the same legal standing as the original paper check;
    
    Title III of The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred to as the
USA PATRIOT Act), which significantly expanded the responsibilities of financial
institutions, including savings banks, in preventing the use of the U.S. financial
system to fund terrorist activities. Among other provisions, the USA PATRIOT Act
and the related regulations of the FRB require savings associations operating in
the United States to develop new anti-money laundering compliance programs, due
diligence policies and controls to ensure the detection and reporting of money
laundering. Such required compliance programs are intended to supplement existing
compliance
requirements, also applicable to financial institutions, under the Bank Secrecy Act
and the Office of Foreign Assets Control Regulations; and
    
    The Gramm-Leach-Bliley Act, which placed limitations on the sharing of consumer
financial information by financial institutions with unaffiliated third parties.
Specifically, the Gramm-Leach-Bliley Act requires all financial institutions
offering financial products or services to retail customers to provide such
customers with the financial institutions privacy policy and provide such
customers the opportunity to opt out of the sharing of certain personal financial
information with unaffiliated third parties.
  33




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The Dodd-Frank Act
        34




---



##### Table of Contents



Holding Company Regulation
 General
 Permitted Activities
   (i)
    
    the approval of interstate supervisory acquisitions by savings and loan holding companies;
and(ii)
    
    the acquisition of a savings institution in another state if the laws of the
state of the target savings institution specifically permit such acquisitions.
 Qualified Thrift Lender Test.
 Capital.
  35




---



##### Table of Contents



Source of Strength.
 Dividends.
 Acquisition.
 Federal Securities Laws
   Sarbanes-Oxley Act of 2002
   36




---



##### Table of Contents



FEDERAL AND STATE TAXATION
 Federal Taxation
 General .
 Method of Accounting .
 Bad Debt Reserves .
  Taxable Distributions and Recapture .
  Alternative Minimum Tax .
 Net Operating Loss Carryforwards .
 State Taxation
 New Jersey State Taxation.
  37




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##### Table of Contents



New York State Taxation.
 New York City Taxation.
 Delaware State Taxation
  
 ITEM 1A.
    
    RISK FACTORS
 Future Changes in Interest Rates Could Reduce Our Profits.
  
    
    the interest income we earn on our interest-earning assets, such as loans and
securities; and
    
    the interest expense we pay on our interest-bearing liabilities, such as
deposits and borrowings.
    38




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##### Table of Contents



Historically Low Interest Rates May Adversely Affect Our Net Interest Income and Profitability.
  Our Continued Emphasis On Multifamily and Commercial Real Estate Lending Could Expose Us To
Increased Lending Risks.
    39




---



##### Table of Contents



If Our Allowance for Loan Losses is Not Sufficient to Cover Actual Loan Losses, Our Earnings Will
Decrease.
   Current Market and Economics Conditions May Significantly Affect Our Operations and Financial
Condition.
   40




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##### Table of Contents



United States Political, Credit and Financial Market Conditions May Negatively Affect or Impair the
Value of Our Current Portfolio of Residential Mortgage-Backed Securities Issued or Guaranteed by
Fannie Mae and Freddie Mac.
  Our Deposit Growth Has Been A Primary Funding Source. If Deposit Growth Slows, It May Be More
Expensive For Us To Fund Loan Originations.
  Higher Federal Deposit Insurance Corporation Insurance Premiums Have Increased Our Expenses and Any
Future Insurance Premium Increases Will Adversely Affect Our Earnings.
   If Our Investment in the Federal Home Loan Bank of New York is Classified as Other-Than-Temporarily
Impaired or as Permanently Impaired, Our Earnings Could Decrease.
   41




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##### Table of Contents



Our Inability to Achieve Profitability on New Branches May Negatively Affect Our Earnings.
  Because the Nature of the Financial Services Business Involves a High Volume of Transactions, We
Face Significant Operational Risks.
  Risks Associated with System Failures, Interruptions, or Breaches of Security Could Negatively
Affect Our Earnings.
     42




---



##### Table of Contents



Strong Competition Within Our Market Area May Limit Our Growth and Profitability.
  We Operate in a Highly Regulated Industry, Which Limits the Manner and Scope of Our Business
Activities.
   
 ITEM 1B.
    
    UNRESOLVED STAFF COMMENTS
  
 ITEM 2.
    
    PROPERTIES
  
 ITEM 3.
    
    LEGAL PROCEEDINGS
   43




---



##### Table of Contents



ITEM 4.
    
    RESERVED
 
 PART II
 
 ITEM 5.
    
    MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
  For the Years Ended June 30,2011
    
    
    2010High
    
    
    Low
    
    
    Dividends
    
    
    High
    
    
    Low
    
    
    DividendsFirst Quarter
    
    $
    10.07
    
    
    $
    9.10
    
    
    
    0.075
    
    
    $
    9.74
    
    
    $
    8.50
    
    
    
    0.03Second Quarter
    
    
    12.68
    
    
    
    9.82
    
    
    
    0.100
    
    
    
    9.67
    
    
    
    8.31
    
    
    
    0.05Third Quarter
    
    
    12.98
    
    
    
    11.75
    
    
    
    0.100
    
    
    
    10.93
    
    
    
    8.40
    
    
    
    0.05Fourth Quarter
    
    
    12.96
    
    
    
    11.83
    
    
    
    0.100
    
    
    
    11.43
    
    
    
    9.06
    
    
    
    0.05
   Stock Performance Graph
   44




---



##### Table of Contents



Oritani
Financial Corporation
 
 Period EndingIndex
    
    1/24/2007
    
    
    6/30/2007
    
    
    6/30/2008
    
    
    6/30/2009
    
    
    6/30/2010
    
    
    6/30/2011Oritani Financial Corporation
    
    
    100.00
    
    
    
    89.48
    
    
    
    100.19
    
    
    
    85.85
    
    
    
    96.13
    
    
    
    127.11NASDAQ Bank
    
    
    100.00
    
    
    
    95.38
    
    
    
    64.02
    
    
    
    49.69
    
    
    
    55.24
    
    
    
    58.96NASDAQ Composite
    
    
    100.00
    
    
    
    105.93
    
    
    
    94.07
    
    
    
    76.08
    
    
    
    88.27
    
    
    
    117.28SNL US Thrift Index
    
    
    100.00
    
    
    
    92.54
    
    
    
    47.88
    
    
    
    32.44
    
    
    
    35.24
    
    
    
    34.96KBW Bank
    
    
    100.00
    
    
    
    97.11
    
    
    
    52.24
    
    
    
    34.02
    
    
    
    43.45
    
    
    
    46.08
 *
    
    Source: SNL Financial LC, Charlottesville, VA   Total Number of
    
    
    Maximum Number ofTotal Number
    
    
    Average
    
    
    Shares Purchased as
    
    
    Shares That May Yetof Shares
    
    
    Price Paid
    
    
    part of Publicly
    
    
    Be Purchased UnderPeriod
    
    Repurchased
    
    
    Per Share
    
    
    Announced Plan
    
    
    the Plan (1)April 1, 2011 through April 30, 2011
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    May 1, 2011 through May 31, 2011
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    June 1, 2011 through June 30, 2011
    
    
    731,800
    
    
    $
    12.71
    
    
    
    731,800
    
    
    
    4,892,706
 (1)
    
    On June 27, 2011, the Board of Directors of the Company authorized a stock repurchase
program pursuant to which the Company intends to repurchase up to 5,624,506 shares, representing
approximately 10% of its then outstanding shares. The timing of the repurchases will depend on
certain factors, including but not limited to, market conditions and prices, the Companys
liquidity and capital requirements, and alternative uses of capital. Any repurchased shares will
be held as treasury stock and will be available for general corporate purposes. The Company is
conducting such repurchases in accordance with a Rule 10b5-1 trading plan.
  45




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##### Table of Contents



ITEM 6.
    
    SELECTED FINANCIAL DATA
  At June 30,2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007(In thousands)Selected Financial Condition Data:Total assets
    
    $
    2,587,233
    
    
    $
    2,477,420
    
    
    $
    1,913,521
    
    
    $
    1,443,294
    
    
    $
    1,194,443Loans, net
    
    
    1,672,849
    
    
    
    1,505,880
    
    
    
    1,278,623
    
    
    
    1,007,077
    
    
    
    758,542Securities available for sale, at market value
    
    
    91,442
    
    
    
    358,723
    
    
    
    144,419
    
    
    
    22,285
    
    
    
    35,443Securities held to maturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,415Mortgage-backed securities held to maturity
    
    
    37,609
    
    
    
    66,468
    
    
    
    118,817
    
    
    
    163,950
    
    
    
    217,406Mortgage-backed securities available for sale, at
market value
    
    
    505,932
    
    
    
    78,477
    
    
    
    128,603
    
    
    
    149,209
    
    
    
    38,793Bank owned life insurance
    
    
    44,689
    
    
    
    30,529
    
    
    
    29,385
    
    
    
    26,425
    
    
    
    25,365Federal Home Loan Bank of New York stock, at cost
    
    
    26,844
    
    
    
    25,081
    
    
    
    25,549
    
    
    
    21,547
    
    
    
    10,619Accrued interest receivable
    
    
    9,237
    
    
    
    9,425
    
    
    
    7,967
    
    
    
    5,646
    
    
    
    4,973Investments in real estate joint ventures, net
    
    
    5,309
    
    
    
    5,562
    
    
    
    5,767
    
    
    
    5,564
    
    
    
    6,200Real estate held for investment
    
    
    1,185
    
    
    
    1,221
    
    
    
    1,338
    
    
    
    3,681
    
    
    
    2,492Deposits
    
    
    1,381,310
    
    
    
    1,289,746
    
    
    
    1,127,630
    
    
    
    698,932
    
    
    
    695,757Borrowings
    
    
    509,315
    
    
    
    495,552
    
    
    
    508,991
    
    
    
    433,672
    
    
    
    196,661Stockholders equity
    
    
    645,412
    
    
    
    643,393
    
    
    
    240,098
    
    
    
    278,975
    
    
    
    272,570Selected Operating Data:Interest income
    
    $
    117,353
    
    
    $
    105,339
    
    
    $
    88,429
    
    
    $
    71,591
    
    
    $
    63,349Interest expense
    
    
    36,330
    
    
    
    42,386
    
    
    
    44,500
    
    
    
    37,208
    
    
    
    32,829Net interest income
    
    
    81,023
    
    
    
    62,953
    
    
    
    43,929
    
    
    
    34,383
    
    
    
    30,520Provision for loan losses
    
    
    9,300
    
    
    
    10,000
    
    
    
    9,880
    
    
    
    4,650
    
    
    
    1,210Net interest income after provision for loan losses
    
    
    71,723
    
    
    
    52,953
    
    
    
    34,049
    
    
    
    29,733
    
    
    
    29,310Other income
    
    
    5,452
    
    
    
    5,486
    
    
    
    2,780
    
    
    
    4,936
    
    
    
    5,309Other expense
    
    
    31,716
    
    
    
    42,779
    
    
    
    27,257
    
    
    
    19,491
    
    
    
    25,249Income before income tax expense
    
    
    45,459
    
    
    
    15,660
    
    
    
    9,572
    
    
    
    15,178
    
    
    
    9,370Income tax expense (benefit)
    
    
    16,952
    
    
    
    7,296
    
    
    
    4,020
    
    
    
    6,218
    
    
    
    (1,664
    )Net income
    
    $
    28,507
    
    
    $
    8,364
    
    
    $
    5,552
    
    
    $
    8,960
    
    
    $
    11,034
  46




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##### Table of Contents



At or For the Years Ended June 30,2011
    
    
    2010
    
    
    2009
    
    
    2008
    
    
    2007Selected Financial Ratios and Other Data:Performance Ratios:Return on assets (ratio of net income to average total
assets)
    
    
    1.13
    %
    
    
    0.41
    %
    
    
    0.33
    %
    
    
    0.68
    %
    
    
    0.94
    %Return on equity (ratio of net income to average equity)
    
    
    4.42
    %
    
    
    3.26
    %
    
    
    2.20
    %
    
    
    3.21
    %
    
    
    5.48
    %Average interest rate spread (1)
    
    
    2.88
    %
    
    
    2.99
    %
    
    
    2.36
    %
    
    
    2.06
    %
    
    
    2.23
    %Net interest margin (2)
    
    
    3.36
    %
    
    
    3.25
    %
    
    
    2.77
    %
    
    
    2.77
    %
    
    
    2.73
    %Efficiency ratio (3)
    
    
    36.68
    %
    
    
    48.22
    %
    
    
    58.35
    %
    
    
    49.59
    %
    
    
    70.47
    %Non-interest expense to average total assets
    
    
    1.26
    %
    
    
    2.11
    %
    
    
    1.63
    %
    
    
    1.49
    %
    
    
    2.14
    %Average interest-earning assets to average
interest-bearing liabilities
    
    
    132.25
    %
    
    
    111.83
    %
    
    
    114.47
    %
    
    
    123.59
    %
    
    
    117.00
    %Asset Quality Ratios:Non-performing assets to total assets
    
    
    0.74
    %
    
    
    1.66
    %
    
    
    2.74
    %
    
    
    0.98
    %
    
    
    
    %Non-performing loans to total loans
    
    
    0.90
    %
    
    
    2.48
    %
    
    
    4.03
    %
    
    
    1.39
    %
    
    
    
    %Allowance for loan losses to total loans
    
    
    1.55
    %
    
    
    1.69
    %
    
    
    1.59
    %
    
    
    1.32
    %
    
    
    1.15
    %Capital Ratios:Total capital (to risk-weighted assets)
    
    
    35.46
    %
    
    
    39.64
    %
    
    
    19.15
    %
    
    
    27.78
    %
    
    
    34.87
    %Tier I capital (to risk-weighted assets)
    
    
    34.21
    %
    
    
    38.38
    %
    
    
    17.90
    %
    
    
    26.53
    %
    
    
    33.77
    %Tier I capital (to average assets)
    
    
    25.09
    %
    
    
    31.58
    %
    
    
    14.31
    %
    
    
    19.71
    %
    
    
    23.10
    %Other Data:Number of full service offices
    
    
    23
    
    
    
    22
    
    
    
    21
    
    
    
    19
    
    
    
    19Full time equivalent employees
    
    
    184
    
    
    
    179
    
    
    
    174
    
    
    
    155
    
    
    
    144
 
 (1)
    
    The average interest rate spread represents the difference between the weighted-average yield
on interest-earning assets and the weighted- average cost of interest-bearing liabilities for
the period.(2)
    
    The net interest margin represents net interest income as a percent of average
interest-earning assets for the period.(3)
    
    The efficiency ratio represents non-interest expense divided by the sum of net interest
income before provision for loan losses and non-interest income. For the year ended June 30,
2010, excludes non-recurring expense associated with the accelerated vesting of stock awards
and options triggered by the second step transaction and income from problem loan
dispositions. 
 ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Business Strategy
   Continuing to focus on multifamily and commercial real estate lending
  47




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Aggressively remedy remaining delinquent loans and such additional loans that may occur
 Maintain and increase core deposits
 Expand our market share within our primary market area
 Continue to emphasize operating efficiencies and cost control
  48




---



##### Table of Contents



Critical Accounting Policies
  Allowance for Loan Losses, Impaired Loans And Real Estate Owned
      49




---



##### Table of Contents



Deferred Income Taxes
 Asset Impairment Judgments
  50




---



##### Table of Contents



Stock-Based Compensation
     51




---



##### Table of Contents



Comparison of Financial Condition at June 30, 2011 and June 30, 2010
 Total Assets
 Cash And Cash Equivalents
 Loans, net
 Securities Available For Sale.
 Mortgage-Backed Securities Held to Maturity
 Mortgage-Backed Securities Available For Sale.
 Real Estate Owned
  52




---



##### Table of Contents



Deposits
 Borrowings
 Stockholders equity
 Comparison of Operating Results for the Years Ended June 30, 2011 and June 30, 2010
 Net Income
 Total interest income
  53




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##### Table of Contents



Interest Expense.
 Net interest income.
 Provision for Loan Losses.
  At June 30,2011
    
    
    2010
    
    
    2009
    
    
    2008(In thousands)30 - 59 days past due
    
    $
    7,025
    
    
    $
    12,330
    
    
    $
    6,727
    
    
    $
    27,98560 - 89 days past due
    
    
    5,327
    
    
    
    4,629
    
    
    
    17,825
    
    
    
    18Non-accrual
    
    
    15,303
    
    
    
    38,125
    
    
    
    52,465
    
    
    
    14,210Total
    
    $
    27,655
    
    
    $
    55,084
    
    
    $
    77,017
    
    
    $
    42,213
   54




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##### Table of Contents



Other Income .
  55




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##### Table of Contents



Operating Expenses.
 Income Taxes.
 Comparison of Operating Results for the Years Ended June 30, 2010 and June 30, 2009
 Net Income
  56




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##### Table of Contents



Analysis of operating results adjusted for non-recurring revenues and expenses-Normalized (1)For the Twelve Months Ended June 30, 2010Income fromActual GAAP
    
    
    Accelerated
    
    
    Subtotal Pre-
    
    
    Problem Loan
    
    
    Non-GAAPResults
    
    
    Vesting
    
    
    Normalized
    
    
    Dispositions
    
    
    Normalized (1)(Dollars in thousands, except per share amounts)Selected Operating Data:Interest income
    
    $
    105,339
    
    
    
    
    
    
    $
    105,339
    
    
    $
    (2,318
    )
    
    $
    103,021Interest expense
    
    
    42,386
    
    
    
    
    
    
    
    42,386
    
    
    
    
    
    
    
    42,386Net interest income
    
    
    62,953
    
    
    
    
    
    
    
    62,953
    
    
    
    (2,318
    )
    
    
    60,635Provision for loan losses
    
    
    10,000
    
    
    
    
    
    
    
    10,000
    
    
    
    
    
    
    
    10,000Net interest income after provision for loan losses
    
    
    52,953
    
    
    
    
    
    
    
    52,953
    
    
    
    (2,318
    )
    
    
    50,635Other income
    
    
    5,486
    
    
    
    
    
    
    
    5,486
    
    
    
    (297
    )
    
    
    5,189Other expense
    
    
    42,779
    
    
    
    (11,539
    )
    
    
    31,240
    
    
    
    501
    
    
    
    31,741Income before income tax expense
    
    
    15,660
    
    
    
    11,539
    
    
    
    27,199
    
    
    
    (3,116
    )
    
    
    24,083Income tax expense
    
    
    7,296
    
    
    
    3,438
    
    
    
    10,734
    
    
    
    (1,218
    )
    
    
    9,516Net income
    
    $
    8,364
    
    
    $
    8,101
    
    
    $
    16,465
    
    
    $
    (1,898
    )
    
    $
    14,567Net income available to common shareholders
    
    $
    8,174
    
    
    
    
    
    
    $
    16,275
    
    
    
    
    
    
    $
    14,377Earnings per share-basic & diluted
    
    $
    0.23
    
    
    
    
    
    
    $
    0.45
    
    
    
    
    
    
    $
    0.40Earnings per share-basic and diluted, adjusted for
the
effect of the 1.50 -for-one stock split in connection
with the second step transaction
    
    $
    0.15
    
    
    
    
    
    
    $
    0.30
    
    
    
    
    
    
    $
    0.27
 (1)
    
    This non-GAAP information is being disclosed because management believes that providing
these non-GAAP financial measures provides investors with information useful in understanding the
Companys normalized, core operating financial performance in fiscal 2010, absent the acceleration
of the vesting of the option and restricted stock grants and certain items relating to problem loan
dispositions. While the Companys management uses these non-GAAP measures in its analysis of the
Companys performance, this information should not be viewed as a substitute for financial results
determined in accordance with GAAP or considered to be more important than financial results
determined in accordance with GAAP.
 Total interest income
  57




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Interest Expense.
 Net interest income.
  Provision for Loan Losses.
  At June 30,2010
    
    
    2009
    
    
    2008
    
    
    2007(In thousands)30 - 59 days past due
    
    $
    12,330
    
    
    $
    6,727
    
    
    $
    27,985
    
    
    $
    55560 - 89 days past due
    
    
    4,629
    
    
    
    17,825
    
    
    
    18
    
    
    
    39Non-accrual
    
    
    38,125
    
    
    
    52,465
    
    
    
    14,210
    
    
    
    Total
    
    $
    55,084
    
    
    $
    77,017
    
    
    $
    42,213
    
    
    $
    594
  Other Income .
 Operating Expenses.
 Income Taxes.
  58




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##### Table of Contents



Average Balances and Yields.
 For the Years Ended June 30,2011
    
    
    2010
    
    
    2009Average
    
    
    
    
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    
    
    
    
    AverageOutstanding
    
    
    
    
    
    
    Yield/
    
    
    Outstanding
    
    
    
    
    
    
    Yield/
    
    
    Outstanding
    
    
    
    
    
    
    Yield/Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate
    
    
    Balance
    
    
    Interest
    
    
    Rate(Dollars in thousands)Interest-earning assets:Loans, net (1)
    
    $
    1,611,961
    
    
    $
    99,963
    
    
    
    6.20
    %
    
    $
    1,380,040
    
    
    $
    87,373
    
    
    
    6.33
    %
    
    $
    1,181,385
    
    
    $
    72,158
    
    
    
    6.11
    %Securities available for sale at market value
    
    
    273,739
    
    
    
    5,863
    
    
    
    2.14
    
    
    
    291,255
    
    
    
    8,360
    
    
    
    2.87
    
    
    
    67,479
    
    
    
    2,468
    
    
    
    3.66Securities held to maturity
    
    
    26,515
    
    
    
    1,399
    
    
    
    5.28
    
    
    
    25,506
    
    
    
    1,343
    
    
    
    5.27
    
    
    
    24,937
    
    
    
    1,069
    
    
    
    4.29Mortgage-backed securities available for
sale at market value
    
    
    360,953
    
    
    
    8,299
    
    
    
    2.30
    
    
    
    104,882
    
    
    
    4,840
    
    
    
    4.61
    
    
    
    145,713
    
    
    
    7,046
    
    
    
    4.84Mortgage-backed securities held to maturity
    
    
    49,418
    
    
    
    1,571
    
    
    
    3.18
    
    
    
    89,360
    
    
    
    3,252
    
    
    
    3.64
    
    
    
    142,484
    
    
    
    5,615
    
    
    
    3.94Federal Funds sold and short term investments
    
    
    89,575
    
    
    
    258
    
    
    
    0.29
    
    
    
    47,931
    
    
    
    171
    
    
    
    0.36
    
    
    
    25,021
    
    
    
    73
    
    
    
    0.29Total interest-earning assets
    
    
    2,412,161
    
    
    
    117,353
    
    
    
    4.87
    
    
    
    1,938,974
    
    
    
    105,339
    
    
    
    5.43
    
    
    
    1,587,019
    
    
    
    88,429
    
    
    
    5.57Non-interest-earning assets
    
    
    104,721
    
    
    
    
    
    
    
    
    
    
    
    92,118
    
    
    
    
    
    
    
    
    
    
    
    84,535Total assets
    
    $
    2,516,882
    
    
    
    
    
    
    
    
    
    
    $
    2,031,092
    
    
    
    
    
    
    
    
    
    
    $
    1,671,554Interest-bearing liabilities:Savings accounts
    
    $
    149,977
    
    
    
    941
    
    
    
    0.63
    %
    
    $
    156,444
    
    
    
    1,279
    
    
    
    0.82
    %
    
    $
    144,810
    
    
    
    1,979
    
    
    
    1.37
    %Money market deposit accounts
    
    
    312,574
    
    
    
    3,177
    
    
    
    1.02
    
    
    
    263,675
    
    
    
    3,784
    
    
    
    1.44
    
    
    
    103,932
    
    
    
    2,626
    
    
    
    2.53Checking accounts
    
    
    152,256
    
    
    
    855
    
    
    
    0.56
    
    
    
    110,393
    
    
    
    825
    
    
    
    0.75
    
    
    
    75,324
    
    
    
    628
    
    
    
    0.83Time deposits
    
    
    687,602
    
    
    
    10,746
    
    
    
    1.56
    
    
    
    696,732
    
    
    
    15,735
    
    
    
    2.26
    
    
    
    556,730
    
    
    
    19,029
    
    
    
    3.42Total deposits
    
    
    1,302,409
    
    
    
    15,719
    
    
    
    1.21
    
    
    
    1,227,244
    
    
    
    21,623
    
    
    
    1.76
    
    
    
    880,796
    
    
    
    24,262
    
    
    
    2.75Borrowings
    
    
    521,541
    
    
    
    20,611
    
    
    
    3.95
    
    
    
    506,592
    
    
    
    20,763
    
    
    
    4.10
    
    
    
    505,599
    
    
    
    20,238
    
    
    
    4.00Total interest-bearing liabilities
    
    
    1,823,950
    
    
    
    36,330
    
    
    
    1.99
    %
    
    
    1,733,836
    
    
    
    42,386
    
    
    
    2.44
    %
    
    
    1,386,395
    
    
    
    44,500
    
    
    
    3.21
    %Non-interest-bearing liabilities
    
    
    48,505
    
    
    
    
    
    
    
    
    
    
    
    41,032
    
    
    
    
    
    
    
    
    
    
    
    33,071Total liabilities
    
    
    1,872,455
    
    
    
    
    
    
    
    
    
    
    
    1,774,868
    
    
    
    
    
    
    
    
    
    
    
    1,419,466Stockholders Equity
    
    
    644,427
    
    
    
    
    
    
    
    
    
    
    
    256,224
    
    
    
    
    
    
    
    
    
    
    
    252,088Total liabilities and Stockholders Equity
    
    $
    2,516,882
    
    
    
    
    
    
    
    
    
    
    $
    2,031,092
    
    
    
    
    
    
    
    
    
    
    $
    1,671,554Net interest income
    
    
    
    
    
    $
    81,023
    
    
    
    
    
    
    
    
    
    
    $
    62,953
    
    
    
    
    
    
    
    
    
    
    $
    43,929Net interest rate spread (2)
    
    
    
    
    
    
    
    
    
    
    2.88
    %
    
    
    
    
    
    
    
    
    
    
    2.99
    %
    
    
    
    
    
    
    
    
    
    
    2.36
    %Net interest-earning assets(3)
    
    $
    588,211
    
    
    
    
    
    
    
    
    
    
    $
    205,138
    
    
    
    
    
    
    
    
    
    
    $
    200,624Net interest margin (4)
    
    
    
    
    
    
    
    
    
    
    3.36
    %
    
    
    
    
    
    
    
    
    
    
    3.25
    %
    
    
    
    
    
    
    
    
    
    
    2.77
    %Ratio of interest-earning assets to
interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    132.25
    %
    
    
    
    
    
    
    
    
    
    
    111.83
    %
    
    
    
    
    
    
    
    
    
    
    114.47
    %
 
 (1)
    
    Includes nonaccrual loans.(2)
    
    Includes Federal Home Loan Bank stock.(3)
    
    Net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted- average cost of interest-bearing liabilities for the period.(4)
    
    Net interest-earning assets represents total interest-earning assets less interest-bearing liabilities.(5)
    
    Net interest margin represents net interest income as a percent of average interest-earning assets for the period.  59




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##### Table of Contents



Rate/Volume Analysis
  Years Ended June 30,
    
    
    Years Ended June 30,2011 vs. 2010
    
    
    2010 vs. 2009Increase (Decrease)
    
    
    Total
    
    
    Increase (Decrease)Due
    
    
    TotalDue to
    
    
    Increase
    
    
    to
    
    
    IncreaseVolume
    
    
    Rate
    
    
    (Decrease)
    
    
    Volume
    
    
    Rate
    
    
    (Decrease)(In thousands)Interest-earning assets:Loans, net
    
    $
    14,683
    
    
    $
    (2,093
    )
    
    $
    12,590
    
    
    $
    12,134
    
    
    $
    3.081
    
    
    $
    15,215Securities available for sale
    
    
    (503
    )
    
    
    (1,994
    )
    
    
    (2,497
    )
    
    
    8,184
    
    
    
    (2,292
    )
    
    
    5,892Securities held to maturity
    
    
    53
    
    
    
    3
    
    
    
    56
    
    
    
    24
    
    
    
    250
    
    
    
    274Mortgage-backed securities
available for sale
    
    
    11,817
    
    
    
    (8,358
    )
    
    
    3,459
    
    
    
    (1,974
    )
    
    
    (232
    )
    
    
    (2,206
    )Mortgage-backed securities held
to maturity
    
    
    (1,454
    )
    
    
    (227
    )
    
    
    (1,681
    )
    
    
    (2,094
    )
    
    
    (269
    )
    
    
    (2.363
    )Federal Funds sold and short
term investments
    
    
    149
    
    
    
    (62
    )
    
    
    87
    
    
    
    67
    
    
    
    31
    
    
    
    98Total interest-earning assets
    
    
    24,746
    
    
    
    (12,732
    )
    
    
    12,014
    
    
    
    16,341
    
    
    
    569
    
    
    
    16,910Interest-bearing liabilities:Savings accounts
    
    
    (53
    )
    
    
    (285
    )
    
    
    (338
    )
    
    
    159
    
    
    
    (859
    )
    
    
    (700
    )Money market
    
    
    702
    
    
    
    (1,309
    )
    
    
    (607
    )
    
    
    4,036
    
    
    
    (2,878
    )
    
    
    1,158Checking accounts
    
    
    313
    
    
    
    (283
    )
    
    
    30
    
    
    
    292
    
    
    
    (95
    )
    
    
    197Time deposits
    
    
    (206
    )
    
    
    (4,783
    )
    
    
    (4,989
    )
    
    
    4,785
    
    
    
    (8,079
    )
    
    
    (3,294
    )Total deposits
    
    
    756
    
    
    
    (6,660
    )
    
    
    (5,904
    )
    
    
    9,272
    
    
    
    (11,911
    )
    
    
    (2,639
    )Borrowings
    
    
    613
    
    
    
    (765
    )
    
    
    (152
    )
    
    
    40
    
    
    
    485
    
    
    
    525Total interest-bearing
liabilities
    
    
    1,368
    
    
    
    (7,424
    
    
    
    (6,056
    )
    
    
    9,312
    
    
    
    (11,426
    )
    
    
    (2,114
    )Change in net interest income
    
    $
    23,377
    
    
    $
    (5,307
    )
    
    $
    18,070
    
    
    $
    7,029
    
    
    $
    11,995
    
    
    $
    19,024
 Management of Market Risk
 General
  (i)
    
    originating multifamily and commercial real estate loans that generally tend to
have shorter interest duration and generally have interest rates that reset at five
years;(ii)
    
    investing in shorter duration securities and mortgage-backed securities;(iii)
    
    obtaining general financing through FHLB advances with a fixed long term: and(iv)
    
    obtaining financing through the use of long term brokered deposits.
  60




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Net Portfolio Value .
  NPV as a Percentage of PresentValue of Assets (3)Change in Interest
    
    
    
    
    
    Estimated Increase (Decrease) in
    
    
    
    
    
    
    IncreaseRates (basis
    
    Estimated
    
    
    NPV
    
    
    
    
    
    
    (Decrease)points) (1)
    
    NPV (2)
    
    
    Amount
    
    
    Percent
    
    
    NPV Ratio (4)
    
    
    (basis points)(Dollars in thousands)+200
    
    
    561,699
    
    
    
    (95,897
    )
    
    
    (14.6
    )%
    
    
    23.1
    %
    
    
    (229
    )0
    
    
    657,596
    
    
    
    
    
    
    
    
    
    
    
    25.4
    
    
    
    -100
    
    
    690,093
    
    
    
    32,497
    
    
    
    4.9
    
    
    
    26.0
    
    
    
    62
 
 (1)
    
    Assumes an instantaneous uniform change in interest rates at all maturities.(2)
    
    NPV is the discounted present value of expected cash flows from assets,
liabilities and off-balance sheet contracts.(3)
    
    Present value of assets represents the discounted present value of incoming
cash flows on interest-earning assets.(4)
    
    NPV Ratio represents NPV divided by the present value of assets.    61




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##### Table of Contents



Liquidity and Capital Resources
   (i)
    
    expected loan demand;(ii)
    
    expected deposit flows;(iii)
    
    expected payments from the loan and investment portfolios;(iv)
    
    funds available through borrowings;(v)
    
    yields available on interest-earning deposits and securities(vi)
    
    yields and structures available on alternate investments; and.(vii)
    
    the objectives of our asset/liability management program
        62




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Off-Balance Sheet Arrangements and Aggregate Contractual Obligations
 Commitments.
 Contractual Obligations.
  Payments Due by PeriodLess than
    
    
    One to Three
    
    
    Three to Five
    
    
    More thanOne Year
    
    
    Years
    
    
    Years
    
    
    Five Years
    
    
    TotalContractual Obligations
    
    (In thousands)Federal Home Loan Bank advances
    
    $
    
    
    
    $
    144,934
    
    
    $
    139,381
    
    
    $
    225,000
    
    
    $
    509,315Operating leases
    
    
    539
    
    
    
    836
    
    
    
    478
    
    
    
    177
    
    
    
    2,030Total
    
    $
    539
    
    
    $
    145,770
    
    
    $
    139,859
    
    
    $
    225,177
    
    
    $
    511,345Commitments to extend credit
    
    $
    100,166
    
    
    $
    1,700
    
    
    $
    
    
    
    $
    
    
    
    $
    101,866Unadvanced construction loans
    
    $
    12,032
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    12,032Unused lines of credit
    
    $
    39,434
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    39,434Commitments to purchase securities
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
 Impact of Inflation and Changing Prices
  
 ITEM 7A.
    
    QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
  
 ITEM 8.
    
    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
   63




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##### Table of Contents



ITEM 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
  
 ITEM 9A.
    
    CONTROLS AND PROCEDURES
 (a)
    
    Evaluation of disclosure controls and procedures.
  (b)
    
    Changes in internal controls.
  (c)
    
    Management report on internal control over financial reporting.
       
 ITEM 9B.
    
    OTHER INFORMATION
   64




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##### Table of Contents



PART III
 
 ITEM 10.
    
    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
  
 ITEM 11.
    
    EXECUTIVE COMPENSATION
  
 ITEM 12.
    
    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
   
 ITEM 13.
    
    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
  
 ITEM 14.
    
    PRINCIPAL ACCOUNTANT FEES AND SERVICES
  
 ITEM 15.
    
    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 Financial Statements
  (A)
    
    Report of Independent Registered Public Accounting Firm(B)
    
    Consolidated Balance Sheets  at June 30, 2011 and 2010(C)
    
    Consolidated Statements of Income  Years ended June 30, 2011,
2010 and 2009(D)
    
    Consolidated Statements of Stockholders Equity  Years ended
June 30, 2011, 2010 and 2009(E)
    
    Consolidated Statements of Cash Flows  Years ended June 30,
2011, 2010 and 2009(F)
    
    Notes to Consolidated Financial Statements.
  65




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Report of Independent Registered Public Accounting Firm
 
     
  66




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##### Table of Contents



Report of Independent Registered Public Accounting Firm
 
 Internal Control 
Integrated Framework
    Internal Control  Integrated Framework
  
  67




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##### Table of Contents



ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 2011
    
    
    2010(Dollars in thousands)AssetsCash and cash equivalents on hand and in banks
    
    $
    6,978
    
    
    $
    6,511Federal funds sold and short term investments
    
    
    126,265
    
    
    
    339,828Cash and cash equivalents (note 3)
    
    
    133,243
    
    
    
    346,339Loans, net (notes 4 and 5)
    
    
    1,672,849
    
    
    
    1,505,880Securities available for sale, at fair value (notes 7 and 12)
    
    
    91,442
    
    
    
    358,723Mortgage-backed securities held to maturity,
fair value of $38,522 and $68,622 (notes 6 and 12)
    
    
    37,609
    
    
    
    66,468Mortgage-backed securities available for sale,
at fair value (notes 7 and 12)
    
    
    505,932
    
    
    
    78,477Bank Owned Life Insurance (at cash surrender value)
    
    
    44,689
    
    
    
    30,529Federal Home Loan Bank of New York stock, at cost
    
    
    26,844
    
    
    
    25,081Accrued interest receivable (note 8)
    
    
    9,237
    
    
    
    9,425Investments in real estate joint ventures, net
    
    
    5,309
    
    
    
    5,562Real estate held for investment
    
    
    1,185
    
    
    
    1,221Real estate owned
    
    
    3,967
    
    
    
    3,031Office properties and equipment, net (note 9)
    
    
    15,012
    
    
    
    14,832Deferred tax assets, net (note 11)
    
    
    22,607
    
    
    
    23,154Other assets
    
    
    17,308
    
    
    
    8,698Total assets
    
    $
    2,587,233
    
    
    $
    2,477,420Liabilities and Stockholders EquityLiabilities:Deposits (note 10)
    
    $
    1,381,310
    
    
    $
    1,289,746Borrowings (note 12)
    
    
    509,315
    
    
    
    495,552Advance payments by borrowers for taxes and insurance
    
    
    12,846
    
    
    
    11,060Official checks outstanding
    
    
    5,409
    
    
    
    4,742Other liabilities (note 13)
    
    
    32,941
    
    
    
    32,927Total liabilities
    
    
    1,941,821
    
    
    
    1,834,027Stockholders Equity (notes 2 and 16):Common stock, $0.01 par value; 150,000,000 shares authorized;
56,245,065 shares issued and 55,513,265 shares
outstanding at June 30, 2011; 56,202,485 shares
issued and outstanding at June 30, 2010
    
    
    562
    
    
    
    562Additional paid-in capital
    
    
    489,593
    
    
    
    488,684Unallocated common stock held by the employee stock
ownership plan
    
    
    (28,808
    )
    
    
    (30,033
    )Treasury stock, at cost; 731,800 shares at June 30, 2011
    
    
    (9,300
    )
    
    
    Retained income (note 11)
    
    
    190,955
    
    
    
    182,172Accumulated other comprehensive income, net of tax
    
    
    2,410
    
    
    
    2,008Total stockholders equity
    
    
    645,412
    
    
    
    643,393Commitments and contingencies (notes 4 and 15)Total liabilities and stockholders equity
    
    $
    2,587,233
    
    
    $
    2,477,420
   68




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 2011
    
    
    2010
    
    
    2009(Dollars in thousands)Interest income:Interest on mortgage loans
    
    $
    99,963
    
    
    $
    87,373
    
    
    $
    72,158Interest on securities held to maturity and dividends on FHLB stock
    
    
    1,399
    
    
    
    1,343
    
    
    
    1,069Interest on securities available for sale
    
    
    5,863
    
    
    
    8,360
    
    
    
    2,468Interest on mortgage-backed securities held to maturity
    
    
    1,571
    
    
    
    3,252
    
    
    
    5,615Interest on mortgage-backed securities available for sale
    
    
    8,299
    
    
    
    4,840
    
    
    
    7,046Interest on federal funds sold and short term investments
    
    
    258
    
    
    
    171
    
    
    
    73Total interest income
    
    
    117,353
    
    
    
    105,339
    
    
    
    88,429Interest expense:Deposits (note 10)
    
    
    15,719
    
    
    
    21,623
    
    
    
    24,262Borrowings (note 12)
    
    
    20,611
    
    
    
    20,763
    
    
    
    20,238Total interest expense
    
    
    36,330
    
    
    
    42,386
    
    
    
    44,500Net interest income before provision for
loan losses
    
    
    81,023
    
    
    
    62,953
    
    
    
    43,929Provision for loan losses (note 5)
    
    
    9,300
    
    
    
    10,000
    
    
    
    9,880Net interest income after provision for loan
losses
    
    
    71,723
    
    
    
    52,953
    
    
    
    34,049Other income:Service charges
    
    
    1,310
    
    
    
    1,477
    
    
    
    1,122Real estate operations, net
    
    
    1,199
    
    
    
    1,267
    
    
    
    1,294Income from investments in real estate joint ventures
    
    
    857
    
    
    
    538
    
    
    
    1,124BOLI income
    
    
    1,210
    
    
    
    1,144
    
    
    
    1,127Net loss on sale and write down of securities
    
    
    (49
    )
    
    
    (167
    )
    
    
    (2,045
    )Gain on sale of real estate held for investment
    
    
    
    
    
    
    1,043
    
    
    
    Gain on sale
of real estate owned
    
    
    718
    
    
    
    
    
    
    
    Other income
    
    
    207
    
    
    
    184
    
    
    
    158Total other income
    
    
    5,452
    
    
    
    5,486
    
    
    
    2,780Operating expenses:Compensation, payroll taxes and fringe benefits (notes 13 and 14)
    
    
    19,682
    
    
    
    32,871
    
    
    
    18,670Advertising
    
    
    657
    
    
    
    665
    
    
    
    635Office occupancy and equipment expense (notes 9 and 15)
    
    
    2,425
    
    
    
    2,290
    
    
    
    2,088Data processing service fees
    
    
    1,231
    
    
    
    1,131
    
    
    
    1,069Federal insurance premiums
    
    
    1,381
    
    
    
    2,248
    
    
    
    1,774Real estate owned expense
    
    
    1,996
    
    
    
    462
    
    
    
    Other expenses
    
    
    4,344
    
    
    
    3,112
    
    
    
    3,021Total operating expenses
    
    
    31,716
    
    
    
    42,779
    
    
    
    27,257Income before income tax expense
    
    
    45,459
    
    
    
    15,660
    
    
    
    9,572Income tax expense (note 11)
    
    
    16,952
    
    
    
    7,296
    
    
    
    4,020Net income
    
    $
    28,507
    
    
    $
    8,364
    
    
    $
    5,552Net income available to common stockholders
    
    $
    28,507
    
    
    $
    8,174
    
    
    $
    5,459Basic and fully diluted income per common share
    
    $
    0.54
    
    
    $
    0.15
    
    
    $
    0.10
   69




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 Accumu-Un-
    
    
    
    
    
    
    latedallocated
    
    
    
    
    
    
    othercommon
    
    
    
    
    
    
    compre-
    
    
    TotalAdditional
    
    
    
    
    
    
    stock
    
    
    
    
    
    
    hensive
    
    
    stock-Common
    
    
    paid-in
    
    
    Treasury
    
    
    held by
    
    
    Retained
    
    
    income(loss)
    
    
    holdersStock
    
    
    capital
    
    
    Stock
    
    
    ESOP
    
    
    income
    
    
    net of tax
    
    
    equityBalance at June 30, 2008
    
    $
    130
    
    
    $
    128,656
    
    
    $
    (5,926
    )
    
    $
    (14,704
    )
    
    $
    171,160
    
    
    $
    (341
    )
    
    $
    278,975Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,552
    
    
    
    
    
    
    
    5,552Unrealized holding gain on securities available
for sale arising during year, net of tax $200
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    203
    
    
    
    203Reclassification adjustment for losses included in
net income, net of tax of $815
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,231
    
    
    
    1,231Change in funded status of retirement
obligations, net of tax of $249
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (372
    )
    
    
    (372
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,614Cash dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (437
    )
    
    
    
    
    
    
    (437
    )Cumulative effect adjustment upon
adoption of EITF 06-4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76
    )
    
    
    
    
    
    
    (76
    )Purchase of treasury stock (4,818,506 shares)
    
    
    
    
    
    
    
    
    
    
    (49,989
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (49,989
    )Treasury stock allocated to restricted
stock plan (238,439 shares)
    
    
    
    
    
    
    (2,497
    )
    
    
    2,497
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Compensation cost for stock options
and restricted stock
    
    
    
    
    
    
    3,804
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,804ESOP shares allocated or committed
to be released
    
    
    
    
    
    
    412
    
    
    
    
    
    
    
    795
    
    
    
    
    
    
    
    
    
    
    
    1,207Balance at June 30, 2009
    
    $
    130
    
    
    $
    130,375
    
    
    $
    (53,418
    )
    
    $
    (13,909
    )
    
    $
    176,199
    
    
    $
    721
    
    
    $
    240,098Comprehensive income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,364
    
    
    
    
    
    
    
    8,364Unrealized holding gain on securities available
for sale arising during year, net of tax $987
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,436
    
    
    
    1,436Reclassification adjustment for losses included in
net income, net of tax of $15
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45
    
    
    
    45Change in funded status of retirement
obligations, net of tax of $131
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (194
    )
    
    
    (194
    )Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,651
  70




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 Accumu-Un-
    
    
    
    
    
    
    latedallocated
    
    
    
    
    
    
    othercommon
    
    
    
    
    
    
    compre-
    
    
    TotalAdditional
    
    
    
    
    
    
    stock
    
    
    
    
    
    
    hensive
    
    
    stock-Common
    
    
    paid-in
    
    
    Treasury
    
    
    held by
    
    
    Retained
    
    
    income(loss)
    
    
    holders'Stock
    
    
    capital
    
    
    Stock
    
    
    ESOP
    
    
    income
    
    
    net of tax
    
    
    equityCash dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,391
    )
    
    
    
    
    
    
    (2,391
    )Purchase of treasury stock (137,250 shares)
    
    
    
    
    
    
    
    
    
    
    (1,231
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,231
    )Treasury stock allocated to restricted
stock plan (159,353 shares)
    
    
    
    
    
    
    (1,616
    )
    
    
    1,616
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Corporate Reorganization:Oritani Financial Corp., MHC capital contribution
    
    
    
    
    
    
    209
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    209Treasury stock retired
    
    
    (34
    )
    
    
    (52,999
    )
    
    
    53,033
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Exchange of common stock
    
    
    (96
    )
    
    
    94
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )Proceeds from stock offering, net of offering
expenses
    
    
    557
    
    
    
    401,195
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    401,752Issuance of stock for restricted stock awards
    
    
    5
    
    
    
    (5
    )Purchase of cmmon stock by ESOP
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17,134
    )
    
    
    
    
    
    
    
    
    
    
    (17,134
    )Compensation cost for stock options
and restricted stock
    
    
    
    
    
    
    11,115
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,115ESOP shares allocated or committed
to be released
    
    
    
    
    
    
    267
    
    
    
    
    
    
    
    1,010
    
    
    
    
    
    
    
    
    
    
    
    1,277Tax benefit from stock-based compensation
    
    
    
    
    
    
    49
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49Balance at June 30, 2010
    
    $
    562
    
    
    $
    488,684
    
    
    $
    
    
    
    $
    (30,033
    )
    
    $
    182,172
    
    
    $
    2,008
    
    
    $
    643,393Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,507
    
    
    
    
    
    
    
    28,507Unrealized holding gain on securities available
for sale arising during year, net of tax $114
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (214
    )
    
    
    (214
    )Reclassification adjustment for losses included in
net income, net of tax of $60
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    95
    
    
    
    95Change in funded status of retirement
obligations, net of tax of $347
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    521
    
    
    
    521Total comprehensive
income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    28,909Cash dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19,724
    )
    
    
    
    
    
    
    (19,724
    )Purchase of treasury stock (731,800 shares)
    
    
    
    
    
    
    
    
    
    
    (9,300
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,300
    )Exercise of stock options
    
    
    
    
    
    
    429
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    429Compensation cost for stock options
    
    
    
    
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23ESOP shares allocated or committed
to be released
    
    
    
    
    
    
    457
    
    
    
    
    
    
    
    1,225
    
    
    
    
    
    
    
    
    
    
    
    1,682Balance at June 30, 2011
    
    $
    562
    
    
    $
    489,593
    
    
    $
    (9,300
    )
    
    $
    (28,808
    )
    
    $
    190,955
    
    
    $
    2,410
    
    
    $
    645,412
   71




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
 
 2011
    
    
    2010
    
    
    2009(Dollars in thousands)Cash flows from operating activities:Net income
    
    $
    28,507
    
    
    $
    8,364
    
    
    $
    5,552Adjustments to reconcile net income to net cash provided by operating activities:ESOP and stock-based compensation expense
    
    
    1,705
    
    
    
    12,392
    
    
    
    5,011Depreciation of premises and equipment
    
    
    856
    
    
    
    815
    
    
    
    701Amortization (accretion) of premiums and discounts, net
    
    
    850
    
    
    
    (155
    )
    
    
    62Provision for losses on loans
    
    
    9,300
    
    
    
    10,000
    
    
    
    9,880Writedown of real estate owned
    
    
    1,703
    
    
    
    437
    
    
    
    Accretion of deferred loan fees, net
    
    
    (1,076
    )
    
    
    (913
    )
    
    
    (797
    )Decrease (increase) in deferred taxes
    
    
    213
    
    
    
    (3,337
    )
    
    
    (4,438
    )Impairment charge on securities
    
    
    291
    
    
    
    202
    
    
    
    1,984(Gain) loss on sale of securities
    
    
    (242
    )
    
    
    (35
    )
    
    
    61Gain on sale
of real estate held for investment
    
    
    
    
    
    
    (1,043
    )
    
    
    Gain on sale
of real estate owned
    
    
    (718
    )
    
    
    
    
    
    
    Increase in cash surrender value of bank owned life insurance
    
    
    (1,210
    )
    
    
    (1,144
    )
    
    
    (1,127
    )Decrease (increase) in accrued interest receivable
    
    
    188
    
    
    
    (1,458
    )
    
    
    (2,321
    )Decrease (increase) in other assets
    
    
    1,710
    
    
    
    (6,250
    )
    
    
    (1,125
    )Increase in other liabilities
    
    
    797
    
    
    
    9,923
    
    
    
    3,557Net cash provided by operating activities
    
    
    42,874
    
    
    
    27,798
    
    
    
    17,000Cash flows from investing activities:Net increase in loans receivable
    
    
    (178,307
    )
    
    
    (209,367
    )
    
    
    (243,561
    )Purchase of mortgage loans
    
    
    (12,548
    )
    
    
    (34,445
    )
    
    
    (37,068
    )Proceeeds from sales of mortgage loans
    
    
    
    
    
    
    4,000
    
    
    
    Purchase of securities available for sale
    
    
    (197,486
    )
    
    
    (443,246
    )
    
    
    (163,679
    )Purchase of mortgage-backed securities held to maturity
    
    
    (8,334
    )
    
    
    
    
    
    
    Purchase of mortgage-backed securities available for sale
    
    
    (542,023
    )
    
    
    (5,106
    )
    
    
    (11,257
    )(Purchase) redemption of Federal Home Loan Bank of New York stock
    
    
    (1,763
    )
    
    
    468
    
    
    
    (4,002
    )Principal payments on mortgage-backed securities held to maturity
    
    
    27,156
    
    
    
    42,737
    
    
    
    44,928Principal payments on mortgage-backed securities available for sale
    
    
    110,196
    
    
    
    49,170
    
    
    
    34,562Proceeds from calls and maturities of securities available for sale
    
    
    286,880
    
    
    
    230,640
    
    
    
    38,895Proceeds from sales of mortgage-backed securities held to maturity
    
    
    10,176
    
    
    
    9,361
    
    
    
    Proceeds from sales of mortgage-backed securities available for sale
    
    
    6,355
    
    
    
    6,087
    
    
    
    Proceeds from sales of securities available for sale
    
    
    174,694
    
    
    
    1,000
    
    
    
    500Purchase of Bank Owned Life Insurance
    
    
    (12,950
    )
    
    
    
    
    
    
    (1,833
    )Net increase in real estate held for investment
    
    
    (79
    )
    
    
    (33
    )
    
    
    (1,445
    )Proceeds from sale of real estate
    
    
    4,349
    
    
    
    1,182
    
    
    
    Net decrease (increase) in real estate joint ventures
    
    
    251
    
    
    
    552
    
    
    
    (366
    )Purchase of fixed assets
    
    
    (1,055
    )
    
    
    (1,870
    )
    
    
    (1,500
    )Net cash used by investing activities
    
    
    (334,488
    )
    
    
    (348,870
    )
    
    
    (345,826
    )Cash flows from financing activities:Net increase in deposits
    
    
    91,564
    
    
    
    162,116
    
    
    
    428,698Net proceeds from issuance of common stock
    
    
    429
    
    
    
    401,752
    
    
    
    Purchase of common stock for ESOP
    
    
    
    
    
    
    (17,134
    )
    
    
    Dividends paid to shareholders
    
    
    (19,724
    )
    
    
    (2,830
    )
    
    
    Increase in advance payments by borrowers for taxes and insurance
    
    
    1,786
    
    
    
    2,759
    
    
    
    1,277Proceeds from borrowed funds
    
    
    438,380
    
    
    
    43,475
    
    
    
    341,225Repayment of borrowed funds
    
    
    (424,617
    )
    
    
    (56,914
    )
    
    
    (265,906
    )Purchase of treasury stock
    
    
    (9,300
    )
    
    
    (1,231
    )
    
    
    (49,989
    )Tax benefit from stock-based compensation
    
    
    
    
    
    
    49
    
    
    
    Net cash provided by financing activities
    
    
    78,518
    
    
    
    532,042
    
    
    
    455,305Net (decrease) increase in cash and cash
equivalents
    
    
    (213,096
    )
    
    
    210,970
    
    
    
    126,479Cash and cash equivalents at beginning of year
    
    
    346,339
    
    
    
    135,369
    
    
    
    8,890Cash and cash equivalents at end of year
    
    $
    133,243
    
    
    $
    346,339
    
    
    $
    135,369Supplemental cash flow information:Cash paid during the year for:Interest
    
    $
    36,445
    
    
    $
    42,633
    
    
    $
    44,262Income taxes
    
    
    13,440
    
    
    
    12,685
    
    
    
    9,812Noncash transfersLoans receivable transferred to real estate owned
    
    
    8,978
    
    
    
    3,468
    
    
    
    Loans transferred to other assets
    
    
    9,484
    
    
    
    
    
    
    
    RE Held for Investment transferred to Office, Property and Equipment
    
    
    
    
    
    
    
    
    
    
    3,690
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (1) Summary of Significant Accounting Policies
 Principles of Consolidation
 The consolidated financial statements are comprised of the accounts of Oritani Financial Corp.
(the Company), and its wholly owned subsidiaries, Oritani Bank (the Bank); Hampshire
Financial, LLC, and Oritani, LLC, and the wholly owned subsidiaries of Oritani Bank, Oritani
Finance Company, Ormon LLC (Ormon), and Oritani Investment Corp., as well as its wholly owned
subsidiary, Oritani Asset Corporation (a real estate investment trust), collectively, the
Company. All intercompany balances and transactions have been eliminated in consolidation.Business
 The Company provides a wide range of deposit banking services to individual and corporate
customers in the New Jersey counties of Bergen, Hudson, Essex and Passaic. The Company
provides loans to individual and corporate customers in New Jersey and portions of the states
of New York, Connecticut, Pennsylvania, Delaware and Maryland. The Company is subject to
competition from other financial institutions and to the regulations of certain federal and
state agencies and undergoes periodic examinations by those regulatory authorities.
 The following are the significant accounting policies which were followed in preparing and
presenting these consolidated financial statements.Basis of Financial Statement Presentation
 The consolidated financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP). In preparing the
consolidated financial statements, management is required to make estimates and assumptions
that affect the reported amounts of assets and liabilities presented in the Consolidated
Balance Sheets at June 30, 2011 and 2010, and in the Consolidated Statements of Income for the
years ended June 30, 2011, 2010 and 2009. Actual results could differ significantly from
those estimates.
 Material estimates that are particularly susceptible to significant change in the near term
relate to the determination of the allowance for loan losses and the valuation of real estate
acquired in connection with foreclosures or in satisfaction of loans. In connection with the
determination of the allowance for loan losses, management generally obtains independent
appraisals for significant properties.
 A substantial portion of the Companys loans are secured by real estate in the New Jersey, New
York and Pennsylvania markets. In addition, the real estate joint ventures and real estate
owned are located in that same market. Accordingly, as with most financial institutions in the
market area, the ultimate collectibility of a substantial portion of the Companys loan
portfolio and the recovery of the carrying amount of real estate joint ventures and real
estate owned are susceptible to changes in market conditions.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Securities
 Securities include debt, mortgage-backed and marketable equity securities. Management
determines the appropriate classification of securities as either available for sale or held
to maturity at the purchase date. Securities that may be sold in response to changing market
and interest rate conditions or as part of an overall asset/liability strategy are classified
as available for sale. Gains or losses on sales of securities available for sale are based
upon the specific-identification method. Securities classified as available for sale are
carried at fair value with unrealized gains and losses net of applicable taxes, included in
accumulated other comprehensive income (loss), a component of equity. If management has the
intent and the ability at the time of purchase to hold securities until maturity, they are
classified as held to maturity. Securities held to maturity are carried at cost, adjusted for
unamortized purchase premiums and discounts. Premiums and discounts on securities are accreted
or amortized using the level-yield method over the estimated lives of the securities,
including the effect of prepayments. Any portion of unrealized loss on an individual equity
security deemed to be other than temporary is recognized as a loss in operations in the period
in which such determination is made. For debt investment securities deemed other than
temporarily impaired, the investment is written down through current earnings by the
impairment related to the estimated credit loss and the non-credit related impairment is
recognized in other comprehensive income. In the ordinary course of business, securities are
pledged as collateral in conjunction with the Companys borrowings and lines of credit.Loans
 Mortgages on real estate and other loans are stated at the outstanding principal amount of the
loans, net of deferred loan fees/costs and the allowance for loan losses. Loan origination and
commitment fees, net of related costs, are deferred and amortized as an adjustment to the
loans yield, utilizing the level yield method, over the actual lives of the related loans.
Interest income on loans is accrued and credited to interest income as earned. Loans are
generally placed on nonaccrual status when they become delinquent 90 days or more as to
principal or interest, or when it appears that principal or interest is uncollectible.
Interest accrued prior to a loan being placed on nonaccrual status is subsequently reversed.
Interest income on nonaccrual loans is recognized only in the period it is ultimately
collected. Loans are returned to an accrual status when factors indicating doubtful
collectibility no longer exist. Loans are generally charged off after an analysis is completed
which indicates collectibility of principal and interest is in doubt.
 The Company defines an impaired loan as a loan for which it is probable, based on current
information, that the Company will not collect all amounts due under the contractual terms of
the loan agreement. Loans individually classified as impaired include multifamily, commercial
mortgage and construction loans. Impaired loans are individually assessed to determine that
each loans carrying value is not in excess of the fair value of the related collateral or the
present value of the expected future cash flows. Residential mortgage and consumer loans are
deemed smaller balance homogeneous loans which are evaluated collectively for impairment and
are generally excluded from the population of impaired loans.
 Consumer loans and any portion of residential real estate mortgage loans not adequately
secured are generally charged off when deemed to be uncollectible unless it can be clearly
demonstrated that repayment will occur regardless of the delinquency status. Examples that
would demonstrate repayment include; a loan that is secured by collateral and is in the
process of collection; a loan supported by a valid guarantee or insurance; or a loan supported
by a valid claim against a solvent estate. Charge-offs of commercial real estate mortgage
loans are made on the basis of
managements ongoing evaluation of nonperforming loans. In the ordinary course of business,
loans are pledged as collateral in conjunction with the Companys borrowings.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Allowance for Loan Losses
 An allowance for loan losses is charged to operations based on managements evaluation of the
probable losses inherent in its portfolio. Such evaluation includes a review of all loans for
which full collectibility may not be reasonably assured and considers, among other matters,
the estimated net realizable value of the underlying collateral, economic conditions and other
matters which warrant consideration. Subsequent recoveries, if any, are credited to the
allowance.
 Management believes that the allowance for loan losses is adequate. While management uses
available information to recognize losses on loans, future additions to the allowance may be
necessary based on changes in economic conditions in the Companys market area. In addition,
various regulatory agencies, as an integral part of their examination process, periodically
review the Companys allowance for loan losses. Such agencies may require the Company to
recognize additions to the allowance based on their judgments about information available to
them at the time of their examination.Troubled-Debt Restructuring
 Troubled debt restructured (TDR) loans are those loans whose terms have been modified
because of deterioration in the financial condition of the borrower. Modifications could
include extension of the terms of the loan, reduced interest rates, and forgiveness of accrued
interest and/or principal. Once an obligation has been restructured because of such credit
problems, it continues to be considered restructured until paid in full or, if the
restructured debt is at a market rate (a rate equal to or greater than the rate the Company
was willing to accept at the time of the restructuring for a new loan with comparable risk),
until the year subsequent to the year in which the restructuring takes place, provided the
borrower has performed under the modified terms for a six month period.Real Estate Owned
 Real Estate acquired through foreclosure or deed-in-lieu of foreclosure is recorded at
estimated fair value less estimated selling costs when acquired, thus establishing a new cost
basis. Fair value is generally based on independent appraisals. These appraisals include
adjustments to comparable assets based on the appraisers market knowledge and experience.
When an asset is acquired, the excess of the loan balance over fair value, less estimated
selling costs, is charged to the allowance for loan losses. If the estimated fair value of
the asset declines, a write-down is recorded through expense. The valuation of foreclosed
assets is subjective in nature and may be adjusted in the future because of changes in the
economic conditions. Operating costs after acquisition are expensed.Bank Owned Life Insurance
 Bank-owned life insurance is accounted for using the cash surrender value method and is
recorded at its realizable value. The change in the cash surrender value is included in other
noninterest income.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Federal Home Loan Bank of New York Stock
 The Bank, as a member of the Federal Home Loan Bank of New York (FHLB), is required to hold
_____shares of capital stock in the FHLB in an amount based on the Banks total investment in
mortgage related assets and advances. The requirement pertaining to mortgage related assets
is a
range from 0.10% to 0.25% of mortgage related assets, and is currently equal to 0.20%. The
requirement pertaining to advances is a range from 4.0% to 5.0% of total advances, and is
currently equal to 4.5%. The stock is carried at cost. In performing our
other-than-temporary impairment analysis of FHLB stock, we evaluated, among other things, (i)
its earnings performance, including the significance of any decline in net assets of the FHLB
as compared to the regulatory capital amount of the FHLB, (ii) the commitment by the FHLB to
make required dividend payments, and (iii) the liquidity position of the FHLB. We do not
consider this security to be impaired at June 30, 2011.Investments in Real Estate Joint Ventures, Net
 The Company accounts for investments in joint ventures under the equity method. The balance
reflects the cost basis of investments, plus the Companys share of income earned on the joint
venture operations, less cash distributions, including excess cash distributions, and the
Companys share of losses on joint venture operations. Cash received in excess of the
Companys recorded investment in a joint venture is recorded as unearned revenue in other
liabilities.Real Estate Held for Investment
 Real estate held for investment includes the Companys undivided interest in real estate
properties accounted for under the equity method and properties held for investment purposes.
Cash received in excess of the Companys recorded investment for an undivided interest in real
estate property is recorded as unearned revenue in other liabilities. The operations of the
properties held for investment purposes are reflected in the financial results of the Company
and included in the Other Income caption in the Income Statement. Properties held for
investment purposes are carried at cost less accumulated depreciation.Office Properties and Equipment
 Office properties and equipment are carried at cost, less accumulated depreciation.
Depreciation of office properties and equipment is computed on a straight-line basis over the
estimated useful lives of the related assets. The Company uses the following estimated useful
lives for its office properties and equipment categories: land improvements  15 years;
building and major building improvements  40 years; minor building improvements  10 years
and furniture and fixtures  3 to 7 years. Leasehold improvements are amortized over the
lesser of the remaining life of the lease or the useful life of the improvement.Employee Benefit Plans
 The Bank has a defined benefit pension plan which covers all employees who satisfy the
eligibility requirements. The Bank participates in a multi-employer plan. Costs of the pension
plan are based on the contribution required to be made to the program. The Banks policy is to
fund at least the minimum contribution required by the Employee Retirement Income Security Act
of 1974, as amended. The Plan was frozen as of December 31, 2008.
 The Bank has a 401(k) savings incentive plan covering substantially all employees of the Bank.
The Bank may match a percentage of the first 6% of employee contributions. The contribution
percentage is determined annually by the Board of Directors.
 The employee stock ownership plan (ESOP) is accounted for in accordance with the provisions
of ASC 718, Employers Accounting for Employee Stock Ownership Plans. The funds borrowed by
the ESOP from the Company to purchase the Companys common stock will be repaid from the
Banks contributions over a period of up to 25 years. The Companys common stock not yet
allocated to participants is recorded as a reduction of stockholders equity at cost.
Compensation expense for the ESOP is based on the market price of the Companys stock and is
recognized as shares are committed to be released to participants.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The Bank provides several nonqualified, defined benefit plans which provide benefits to
executive officers and directors of the Company. These plans are unfunded and the costs of the
plans are recognized over the period that services are provided.
 The Company provides several post-retirement benefit plans to directors and certain retired
employees and will provide such benefits to certain active officers that are accounted for in
accordance with ASC 715, Compensation-Retirement Benefits. This guidance requires an
employer to: (a) recognize in its statement of financial condition the overfunded or
underfunded status of a defined benefit postretirement plan measured as the difference between
the fair value of plan assets and the benefit obligation; (b) measure a plans assets and its
obligations that determine its funded status as of the date of its year-end balance sheet and
(c) recognize as a component of other comprehensive income, net of tax, the actuarial gains
and losses and the prior service costs and credits that arise during the period. The Company
accrues the cost of post-retirement benefit plans during the employees period of active
service.
 The Companys equity incentive plan is accounted for in accordance with ASC 718,
Compensation-Stock Compensation. This guidance requires companies to recognize in the
statement of earnings the grant-date fair value of stock based awards issued to employees.
Compensation cost related to stock based awards is recognized on a straight-line basis over
the requisite service periods.Income Taxes
 The Company records income taxes in accordance with ASC 740, Income Taxes, using the asset
and liability method. Accordingly, deferred tax assets and liabilities: (i) are recognized
for the expected future tax consequences of events that have been recognized in the financial
statements or tax returns; (ii) are attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases;
and (iii) are measured using enacted tax rates expected to apply in the years when those
temporary differences are expected to be recovered or settled. Where applicable, deferred tax
assets are reduced by a valuation allowance for any portions determined not likely to be
realized. The effect on deferred tax assets and liabilities of a change in tax rates is
recognized in income tax expense in the period of enactment. The valuation allowance is
adjusted, by a charge or credit to income tax expense, as changes in facts and circumstances
warrant. Income taxes are allocated to the individual entities within the consolidated group
based on the effective tax rate of the entity.Comprehensive Income
 Comprehensive income is divided into net income and other comprehensive income. Other
comprehensive income includes items recorded directly to equity, such as unrealized gains and
losses on securities available for sale, change in actuarial gains and losses on other post
retirement benefits, and change in service cost on other postretirement benefits, net of
taxes. Comprehensive income is presented in the consolidated statements of changes in equity.Earnings Per Share
 Basic earnings per share, or EPS, is computed by dividing net income by the weighted average
number of shares outstanding for the period. ASC 260, Earnings Per Share, provides that
unvested share-based payment awards that contain non-forfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are participating securities and shall be
included in the computation of earnings per share pursuant to the two-class method. We
determined that our outstanding non-vested restricted stock awards are participating
securities. Accordingly, earnings per common share is computed using the two-class method.
The weighted average common shares outstanding includes the average number of shares of common
stock outstanding and allocated or committed to be released Employee Stock Ownership Plan shares.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Diluted earnings per share is computed using the same method as basic earnings per share, but
reflects the potential dilution that could occur if stock options and unvested shares of
restricted stock were exercised and converted into common stock. These potentially dilutive shares would then be included in the weighted average number of shares outstanding for the
period using the treasury stock method. When applying the treasury stock method, we add: (1)
the assumed proceeds from option exercises; (2) the tax benefit that would have been credited
to additional paid-in capital assuming exercise of non-qualified stock options and vesting of shares of restricted stock; and (3) the average unamortized compensation costs related to
unvested shares of restricted stock and stock options. We then divide this sum by our average
stock price to calculate shares repurchased. The excess of the number of shares issuable over
the number of shares assumed to be repurchased is added to basic weighted average common shares to calculate diluted EPS.Reclassifications
 Certain items previously reported have been reclassified to conform with the current periods
reporting format.
 (2) Stock Transactions
 Stock Offering
 Oritani Financial Corp. (the Company) is a Delaware corporation that was incorporated in
March 2010 to be the successor to Oritani Financial Corp. (Oritani-federal), a federal
corporation and the former stock holding company for Oritani Bank, upon completion of the
second step transaction of Oritani Financial Corp., MHC, the former mutual holding company
parent. The conversion was completed on June 24, 2010. The Company sold a total of
41,363,214 shares of common stock at $10.00 per share in the related offering. Concurrent
with the completion of the offering, shares of Oritani-federal common stock owned by public
stockholders were exchanged for 1.50 shares of the Companys common stock. In lieu of
fractional shares, shareholders were paid in cash. The Company also issued 481,546 shares of
common stock for the accelerated vesting of restricted stock options and awards triggered by
the conversion. As a result of the offering, the exchange, and the shares issued due to the
accelerated vesting of stock options and awards, as of June 30, 2010, the Company had
56,202,485 shares of common stock outstanding. Net proceeds from the offering were $401.8
million. As a result of the conversion, all per share information was revised to reflect the
1.50 to- one conversion rate at June 24, 2010.Stock Repurchase Program
 On June 27, 2011, the Board of Directors of the Company authorized a stock repurchase program
pursuant to which the Company intends to repurchase up to 5,624,506 shares, representing
approximately 10% of its then outstanding shares. The timing of the repurchases will depend
on certain factors, including but not limited to, market conditions and prices, the Companys
liquidity and capital requirements, and alternative uses of capital. Any repurchased shares
will be held as treasury stock and will be available for general corporate purposes. The
Company is conducting such repurchases in accordance with a Rule 10b5-1 trading plan. At June
30, 2011, a total of 731,800 shares were acquired under this repurchase plan at a weighted
average cost of $12.71 per share. Repurchased shares will be held as treasury stock and will
be available for general corporate purposes. This program has no expiration date and has
4,893,706 shares yet to be purchased as of June 30, 2011.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (3) Cash and Cash Equivalents
 For purposes of the consolidated statements of cash flows, cash and cash equivalents include
cash on hand and in banks and federal funds sold and short term investments which are
generally sold for one-day periods.
 (4) Loans
 A comparative summary of loans at June 30, 2011 and 2010 is as follows:
 2011
    
    
    2010(In thousands)Residential
    
    
    172,972
    
    
    
    244,126Multi-family
    
    
    474,776
    
    
    
    360,380Commercial real estate
    
    
    901,916
    
    
    
    760,076Second mortgage and equity loans
    
    
    38,706
    
    
    
    48,110Construction and land loans
    
    
    86,502
    
    
    
    102,137Other loans
    
    
    30,571
    
    
    
    21,7531,705,443
    
    
    
    1,536,582Less:Deferred fees, net
    
    
    6,080
    
    
    
    4,800Allowance for loan losses
    
    
    26,514
    
    
    
    25,902$
    1,672,849
    
    
    
    1,505,880
 Included in constructions loans at June 30, 2010 was a $16.4 loan collateralized by a
condominium construction project in Bergen County, New Jersey. During the December 2010
quarter, the loan was written down to $9.5 million and transferred to loans held for sale.
During the quarter ended June 30, 2011, the Company sold its loan and rights to the underlying
property to a third party. Bankruptcy trustee approval was necessary to transfer title to the
property to the third party. The bankruptcy trustee approved the transaction in June, 2011;
however, title to the property did not transfer to the new borrower until July 14, 2011. As
of June 30, 2011, the carrying amount of the previously reported loan held for sale ($9.5
million) is included in Other Assets. Because the bankruptcy trustee did not transfer title
until July 14, 2011, the gain on the sale of approximately $564,000 and the removal of this
item from Other Assets was not recorded until July, 2011. In conjunction with the sale,
Oritani provided financing to the purchaser at market rates and market terms.
 At June 30, 2011 and 2010, the Company had fixed-rate mortgage commitments of $11.0 million
and $45.0 million, respectively, and variable-rate mortgage commitments of $90.9 million and
$33.7 million, respectively, which are not included in the accompanying consolidated financial
statements. The rate range of the fixed rate commitments at June 30, 2011 was 5.125% to 6.50%.
Commitments generally have fixed expiration dates or other termination clauses and may
require payment of a fee. There is no exposure to credit loss in the event the other party
does not exercise its right to borrow under the commitment.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The Company grants residential real estate loans on one to four family dwellings principally
throughout the state of New Jersey. Multifamily and commercial real estate loan originations
extend into Eastern Pennsylvania, Southern New York, New York City and parts of Connecticut,
Delaware and Maryland. Borrowers abilities to repay their obligations are dependent upon
various factors, including the borrowers income and net worth, cash flows generated by the
underlying collateral, value of the underlying collateral and priority of the Companys lien
on the property. Such factors are dependent upon various economic conditions and individual
circumstances beyond the Companys control; the Company is therefore subject to risk of loss.
The Company believes that its lending policies and procedures adequately minimize the
potential exposure to such risks and that adequate provisions for losses are provided for all
known and inherent risks.
 Collateral and/or guarantees are generally required for all loans. In underwriting a loan
secured by real property, we require an appraisal of the property by an independent licensed
appraiser approved by the Companys board of directors. The appraisal is subject to review by
an independent third party hired by the Company. We review and inspect properties before
disbursement of funds during the term of a construction loan. Generally, management obtains
updated appraisals when a loan is deemed impaired. These appraisals may be more limited than
those prepared for the underwriting of a new loan. In addition, when the Company acquires
other real estate owned, it generally obtains a current appraisal to substantiate the net
carrying value of the asset.
 The aggregate amount of loans to our executive officers, directors and their related entities,
was $39.8 million and $41.1 million at June 30, 2011 and 2010, respectively. For the twelve
months ended June 30, 2011, new loans to and repayments from executive officers, directors and
their related entities totaled $1.3 million and $2.5 million, respectively. For the twelve
months ended June 30, 2010, new loans to and repayments from executive officers, directors and
their related entities totaled $3.6 million and $591,000, respectively. These loans were
performing according to their original terms at June 30, 2011.
 (5) Allowance for Loan Losses
 Our allowance for loan losses is maintained at a level necessary to absorb loan losses that
are both probable and reasonably estimable. Management, in determining the allowance for loan
losses, considers the losses inherent in our loan portfolio and changes in the nature and
volume of loan activities, along with the general economic and real estate market conditions.
Loan losses are charged to the allowance for loans losses and recoveries are credited to it.
Additions to the allowance for loan losses are provided by charges against income based on
various factors which, in our judgment, deserve current recognition in estimating probable
losses. We regularly review the loan portfolio and make adjustments for loan losses in order
to maintain the allowance for loan losses in accordance with U.S. generally accepted
accounting principles (GAAP). The allowance for loan losses consists primarily of the
following two components:
 (1) Allowances are established for impaired loans (generally defined by the company as a loan
for which it is probable, based on current information, that the Company will not collect all
amounts due under the contractual terms of the loan agreement). The amount of impairment
provided for as an allowance is represented by the deficiency, if any, between the present
value of expected future cash flows discounted at the original loans effective interest rate
or the underlying collateral value (less estimated costs to sell,) if the loan is collateral
dependent, and the carrying value of the loan. Impaired loans that have no impairment losses
are not considered for general valuation allowances described below.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (2) General allowances are established for loan losses on a portfolio basis for loans that do
not meet the definition of impaired. The portfolio is grouped into similar risk
characteristics, primarily loan type, collateral type, if collateral dependent, and internal
credit risk rating. We apply an estimated loss rate to each loan group. The loss rates
applied are based on our cumulative prior two year loss experience adjusted, as appropriate,
for the environmental factors discussed below. This evaluation is inherently subjective, as
it requires material estimates that may be susceptible to significant revisions based upon
changes in economic and real estate market conditions. Actual loan losses may be
significantly more than the allowance for loan losses we have established, which could have a
material negative effect on our financial results.
 The adjustments to our loss experience are based on our evaluation of several environmental
factors, including:
 
    
    changes in local, regional, national, and international economic and
business conditions and developments that affect the collectibility of our
portfolio, including the condition of various market segments;
 
    
    changes in the nature and volume of our portfolio and in the terms of
our loans;
 
    
    changes in the experience, ability, and depth of lending management and
other relevant staff;
 
    
    changes in the volume and severity of past due loans, the volume of
nonaccrual loans, and the volume and severity of adversely classified or graded
loans;
 
    
    changes in the quality of our loan review system;
 
    
    changes in the value of underlying collateral for collateral-dependent
loans;
 
    
    the existence and effect of any concentrations of credit, and changes
in the level of such concentrations; and
 
    
    the effect of other external factors such as competition and legal and
regulatory requirements on the level of estimated credit losses in our existing
portfolio
 In evaluating the estimated loss factors to be utilized for each loan group, management also
reviews actual loss history over an extended period of time as reported by the Federal Deposit
Insurance Corporation (FDIC) for institutions both nationally and in our market area for
periods that are believed to have been under similar economic conditions.
 We evaluate the allowance for loan losses based on the combined total of the impaired and
general components. Generally when the loan portfolio increases, absent other factors, our
allowance for loan loss methodology results in a higher dollar amount of estimated probable
losses than would be the case without the increase. Generally when the loan portfolio
decreases, absent other factors, our
allowance for loan loss methodology results in a lower dollar amount of estimated probable
losses than would be the case without the decrease.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Each quarter we evaluate the allowance for loan losses and adjust the allowance as appropriate
through a provision or recovery for loan losses. While we use the best information available
to make evaluations, future adjustments to the allowance may be necessary if conditions differ
substantially from the information used in making the evaluations. In addition, as an
integral part of their examination process, the New Jersey Department of Banking and Insurance
(NJDOBI) and the FDIC will periodically review the allowance for loan losses. They may
require us to adjust the allowance based on their analysis of information available to them at
the time of their examination. Such examinations typically occur annually. Our last
examination was as of March 31, 2009 by the FDIC and an FDIC safety and soundness examination
is currently in process. An examination by the NJDOBI, as of March 31, 2010, was completed on
September 9, 2010.
 The Company also maintains an unallocated component related to the general allowance.
Management does not target a specific unallocated percentage of the total general allocation,
or total allowance for loan losses. The primary purpose of the unallocated component is to
account for the inherent imprecision of the loss estimation process related primarily to
periodic updating of appraisals on impaired loans, as well as periodic updating of commercial
loan credit risk ratings by loan officers and the Companys internal credit review process.
 Activity in the allowance for loan losses is summarized as follows:
 2011
    
    
    2010
    
    
    2009(In thousands)Balance at beginning of year
    
    $
    25,902
    
    
    
    20,680
    
    
    
    13,532Provisions charged to operations
    
    
    9,300
    
    
    
    10,000
    
    
    
    9,880Recoveries
    
    
    80
    
    
    
    3
    
    
    
    Loans charged off
    
    
    8,768
    
    
    
    4,781
    
    
    
    2,732Balance at end of year
    
    $
    26,514
    
    
    
    25,902
    
    
    
    26,144
 The following tables provide the twelve month activity in the allowance for loan losses
allocated by loan category. The allowance for loan losses allocated to each category is not
necessarily indicative of future losses in any particular category and does not restrict the use
of the allowance to absorb losses in other categories.
 For the twelve months ended June 30, 2011SecondmortgageCommercial
    
    
    and equity
    
    
    ConstructionResidential
    
    
    Multifamily
    
    
    Real Estate
    
    
    loans
    
    
    and land loans
    
    
    Other loans
    
    
    Unallocated
    
    
    Total(In thousands)Allowance for
credit losses:Beginning balance
    
    $
    1,390
    
    
    $
    2,175
    
    
    $
    15,295
    
    
    $
    421
    
    
    $
    4,595
    
    
    $
    482
    
    
    $
    1,544
    
    
    $
    25,902Charge-offs
    
    
    
    
    
    
    
    
    
    
    (3,018
    )
    
    
    
    
    
    
    (5,750
    )
    
    
    
    
    
    
    
    
    
    
    (8,768
    )Recoveries
    
    
    
    
    
    
    
    
    
    
    80
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80Provisions
    
    
    (116
    )
    
    
    528
    
    
    
    3,240
    
    
    
    (52
    )
    
    
    4,610
    
    
    
    1,143
    
    
    
    (53
    )
    
    
    9,300Ending balance
    
    $
    1,274
    
    
    $
    2,703
    
    
    $
    15,597
    
    
    $
    369
    
    
    $
    3,455
    
    
    $
    1,625
    
    
    $
    1,491
    
    
    $
    26,514
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The following table details the amount of loans receivables that are evaluated
individually, and collectively, for impairment, and the related portion of allowance for loan
loss that is allocated to each loan portfolio segment.
 At June 30, 2011SecondCommercial
    
    
    mortgage and
    
    
    ConstructionResidential
    
    
    Multifamily
    
    
    Real Estate
    
    
    equity loans
    
    
    and land loans
    
    
    Other loans
    
    
    Unallocated
    
    
    Total(In thousands)Allowance for credit losses:Individually evaluated
for impairment
    
    $
    
    
    
    $
    
    
    
    $
    193
    
    
    $
    
    
    
    $
    102
    
    
    $
    675
    
    
    $
    
    
    
    $
    970Collectively evaluated
for impairment
    
    
    1,274
    
    
    
    2,703
    
    
    
    15,404
    
    
    
    369
    
    
    
    3,353
    
    
    
    950
    
    
    
    1,491
    
    
    
    25,544Total
    
    $
    1,274
    
    
    $
    2,703
    
    
    $
    15,597
    
    
    $
    369
    
    
    $
    3,455
    
    
    $
    1,625
    
    
    $
    1,491
    
    
    $
    26,514Loans receivables:Individually evaluated
for impairment
    
    $
    
    
    
    $
    
    
    
    $
    1,948
    
    
    $
    
    
    
    $
    9,231
    
    
    $
    1,500
    
    
    
    
    
    
    $
    12,679Collectively evaluated
for impairment
    
    
    172,972
    
    
    
    474,776
    
    
    
    899,968
    
    
    
    38,706
    
    
    
    77,271
    
    
    
    29,071
    
    
    
    
    
    
    
    1,692,764Total
    
    $
    172,972
    
    
    $
    474,776
    
    
    $
    901,916
    
    
    $
    38,706
    
    
    $
    86,502
    
    
    $
    30,571
    
    
    
    
    
    
    $
    1,705,443
 The Company continuously monitors the credit quality of its loan receivables. In
addition to internal staff, the Company utilizes the services of a third party loan review
firm to rate the credit quality of its loan receivables. They report to the Audit Committee
quarterly and their scope is determined by the Audit Committee annually. The loan review firm
reviews a significant portion of the existing portfolio over the course of the year, typically
at least 55% of the commercial real estate, multifamily and construction loan portfolios.
Credit quality is monitored by reviewing certain credit quality indicators. Assets classified
as Satisfactory are deemed to possess average to superior credit quality, requiring no more
than normal attention. Assets classified as Pass/Watch have generally acceptable asset
quality yet possess higher risk characteristics/circumstances than satisfactory assets. Such
characteristics include strained liquidity, slow pay, stale financial statements or other
circumstances requiring greater attention from bank staff. We classify an asset as Special
Mention if the asset has a potential weakness that warrants managements close attention.
Such weaknesses, if left uncorrected may result in the deterioration of the repayment
prospects of the asset. An asset is considered Substandard if it is inadequately protected
by the current net worth and paying capacity of the obligor or of the collateral pledged, if
any. Substandard assets include those characterized by the distinct possibility that we
will sustain some loss if the deficiencies are not corrected. Included in the Substandard
caption at June 30, 2011 are all loans that were past due 90 days (or more) and all impaired
loans. Assets classified as doubtful have all of the weaknesses inherent in those
classified substandard, with the added characteristic that the weaknesses present make
collection or liquidation in full, on the basis of currently existing facts, conditions, and
values, highly questionable and improbable. Doubtful assets include those characterized by
the high possibility that we will sustain a loss.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The following table provides information about the loan credit quality at June 30, 2011:
 Credit Quality Indicator at June 30, 2011SpecialSatisfactory
    
    
    Pass/Watch
    
    
    Mention
    
    
    Substandard
    
    
    Doubtful
    
    
    Total(In thousands)Residential
    
    $
    166,959
    
    
    $
    3,921
    
    
    $
    1,087
    
    
    $
    1,005
    
    
    $
    
    
    
    $
    172,972Multifamily
    
    
    458,232
    
    
    
    11,574
    
    
    
    991
    
    
    
    3,979
    
    
    
    
    
    
    
    474,776Commercial real estate
    
    
    809,174
    
    
    
    58,414
    
    
    
    25,738
    
    
    
    8,590
    
    
    
    
    
    
    
    901,916Second mortgage and equity
loans
    
    
    38,257
    
    
    
    63
    
    
    
    123
    
    
    
    263
    
    
    
    
    
    
    
    38,706Construction and land loans
    
    
    44,070
    
    
    
    23,060
    
    
    
    4,177
    
    
    
    15,195
    
    
    
    
    
    
    
    86,502Other loans
    
    
    22,194
    
    
    
    6,624
    
    
    
    55
    
    
    
    1,698
    
    
    
    
    
    
    
    30,571Total
    
    $
    1,538,886
    
    
    $
    103,656
    
    
    $
    32,171
    
    
    $
    30,730
    
    
    $
    
    
    
    $
    1,705,443
 The following table summarizes the delinquency and accrual status of the loan portfolio
at June 30, 2011:
 At June 30, 201160-89
    
    
    Greater30-59 Days
    
    
    Days Past
    
    
    Than 90
    
    
    Total PastPast Due
    
    
    Due
    
    
    Days
    
    
    Due
    
    
    Current
    
    
    Total Loans
    
    
    Nonaccrual(In thousands)Residential
    
    $
    3,921
    
    
    $
    1,087
    
    
    $
    1,005
    
    
    $
    6,013
    
    
    $
    166,959
    
    
    $
    172,972
    
    
    $
    1,005Multifamily
    
    
    
    
    
    
    3,810
    
    
    
    550
    
    
    
    4,360
    
    
    
    470,416
    
    
    
    474,776
    
    
    
    550Commercial real estate
    
    
    3,041
    
    
    
    307
    
    
    
    3,456
    
    
    
    6,804
    
    
    
    895,112
    
    
    
    901,916
    
    
    
    3,456Second mortgage and equity
loans
    
    
    63
    
    
    
    123
    
    
    
    263
    
    
    
    449
    
    
    
    38,257
    
    
    
    38,706
    
    
    
    263Construction and land loans
    
    
    
    
    
    
    
    
    
    
    8,332
    
    
    
    8,332
    
    
    
    78,170
    
    
    
    86,502
    
    
    
    8,332Other loans
    
    
    
    
    
    
    
    
    
    
    1,697
    
    
    
    1,697
    
    
    
    28,874
    
    
    
    30,571
    
    
    
    1,697Total
    
    $
    7,025
    
    
    $
    5,327
    
    
    $
    15,303
    
    
    $
    27,655
    
    
    $
    1,677,788
    
    
    $
    1,705,443
    
    
    $
    15,303
 Included in loans are loans for which the accrual of interest income has been
discontinued due to deterioration in the financial condition of the borrowers. The principal
amount of nonaccrual loans at June 30, 2011, 2010 and 2009 were $15.3 million, $38.1 million
and $52.5, respectively. If the nonaccrual loans had performed in accordance with their
original terms, interest income would have increased by 2.4 million and $3.0 million and $3.7
million for the years ended June 30, 2011, 2010, and 2009 respectively. The Company has no
loans past due 90 days or more that are still accruing interest.
 The Company defines an impaired loan as a loan for which it is probable, based on current
information, that the Company will not collect all amounts due under the contractual terms of
the loan agreement. Loans individually classified as impaired include multifamily, commercial
mortgage and construction loans. Impaired loans at June 30, 2011, 2010 and 2009 were $12.7
million, $21.9 million and $50.2 million, respectively. The allocation in the allowance for
loan losses for impaired loans at June 30, 2011, 2010 and 2009 were $970,000 on balances of
$7.9 million, $1.4 million on balances of $17.5 million, and $3.3 million on balances of $26.2
million, respectively. The average balance of impaired loans was $13.2 million, $40.6 million
and $34.8 million during the years ended June 30, 2011, 2010 and 2009, respectively. Interest
income recognized on these loans for the years ended June 30, 2011, 2010 and 2009 was $321,000,
$3.1 million and $696,000, respectively.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
   Impaired Financing ReceivablesAt June 30, 2011Unpaid
    
    
    
    
    
    
    Average
    
    
    InterestRecorded
    
    
    Principal
    
    
    
    
    
    
    Recorded
    
    
    IncomeInvestment
    
    
    Balance
    
    
    Allowance
    
    
    Investment
    
    
    Recognized(In thousands)Commercial real estate
    
    $
    1,755
    
    
    $
    1,948
    
    
    $
    193
    
    
    $
    1,965
    
    
    $
    56Construction and land
loans
    
    
    9,129
    
    
    
    9,231
    
    
    
    102
    
    
    
    9,933
    
    
    
    200Other loans
    
    
    825
    
    
    
    1,500
    
    
    
    675
    
    
    
    1,344
    
    
    
    66Total
    
    $
    11,709
    
    
    $
    12,679
    
    
    $
    970
    
    
    $
    13,242
    
    
    $
    322
 Troubled debt restructured loans (TDRS) are those loans whose terms have been modified
because of deterioration in the financial condition of the borrower. Modifications could
include extension of the terms of the loan, reduced interest rates, and forgiveness of accrued
interest and/or principal. Once an obligation has been restructured because of such credit
problems, it continues to be considered restructured until paid in full or, if the
restructured debt is at a market rate (a rate equal to or greater than the rate the Company
was willing to accept at the time of the restructuring for a new loan with comparable risk),
until the year subsequent to the year in which the restructuring takes place, provided the
borrower has performed under the modified terms for a six month period. Included in impaired
loans at June 30, 2011 are $9.5 million of loans which are deemed troubled debt
restructurings. The Company had no troubled-debt restructurings at June 30, 2010. The
Company has selectively modified certain borrowers loans to enable the borrower to emerge
from delinquency and keep their loans current. The eligibility of a borrower for a TDR
modification depends upon the facts and circumstances of each transaction, which may change
from period to period, and involve judgment by management regarding the likelihood that the
modification will result in the maximum recovery by the Company.
 The following table presents additional information regarding the Companys TDRs as of June
30, 2011:
 Troubled Debt RestructuringsPerforming
    
    
    Nonperforming
    
    
    Total(in thousands)Commercial real estate
    
    $
    598
    
    
    $
    626
    
    
    $
    1,224Construction and land loans
    
    
    898
    
    
    
    5,843
    
    
    
    6,741Other loans
    
    
    
    
    
    
    1,500
    
    
    
    1,500Total
    
    $
    1,496
    
    
    $
    7,969
    
    
    $
    9,465Allowance
    
    $
    295
    
    
    $
    675
    
    
    $
    970
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (6) Securities and Mortgage-backed Securities Held to Maturity
 The following is a comparative summary of securities and mortgage-backed securities held to
maturity as of June 30, 2011 and 2010:
 Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)2011:Mortgage-backed
securities:FHLMC
    
    $
    7,546
    
    
    
    402
    
    
    
    
    
    
    
    7,948FNMA
    
    
    22,413
    
    
    
    530
    
    
    
    200
    
    
    
    22,743GNMA
    
    
    3,425
    
    
    
    65
    
    
    
    
    
    
    
    3,490CMO
    
    
    4,225
    
    
    
    116
    
    
    
    
    
    
    
    4,341$
    37,609
    
    
    
    1,113
    
    
    
    200
    
    
    
    38,522
 Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)2010:Mortgage-backed
securities:FHLMC
    
    $
    11,449
    
    
    
    566
    
    
    
    
    
    
    
    12,015FNMA
    
    
    21,593
    
    
    
    755
    
    
    
    
    
    
    
    22,348GNMA
    
    
    2,282
    
    
    
    34
    
    
    
    
    
    
    
    2,316CMO
    
    
    31,144
    
    
    
    799
    
    
    
    
    
    
    
    31,943$
    66,468
    
    
    
    2,154
    
    
    
    
    
    
    
    68,622
 The contractual maturities of mortgage-backed securities held-to-maturity generally
exceed 20 years; however, the effective lives are expected to be shorter due to anticipated
prepayments. Expected maturities will differ from contractual maturities because borrowers may
have the right to call or prepay obligations with or without penalties.
 Proceeds from the sale of mortgage-backed securities held to maturity for the twelve months
ended June 30, 2011 were $10.2 million on mortgage-backed securities with an amortized cost of
$10.1 million, resulting in gross gains and gross losses of $114,000 and $7,000, respectively.
Proceeds for the twelve months ended June 30, 2010 were $9.4 million on mortgage-backed
securities with an amortized cost of $9.5 million, resulting in gross gains and gross losses
of $41,000 and $148,000, respectively. The held to maturity securities sold were mortgage
backed securities with 15% or less of their original purchased balances remaining. The
Company did not sell any mortgage-backed securities held to maturity during the year ended
June 30, 2009. Mortgage-backed securities with fair values of $30.3 million and $67.8 million
June 30, 2011 and 2010, respectively, were pledged as collateral for advances (see note 12).
The Company did not record other than temporary impairment charges on mortgage-backed
securities held to maturity during the years ended June 30, 2011, 2010 and 2009.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Gross unrealized losses on securities and mortgage-backed securities held to maturity and the
estimated fair value of the related securities, aggregated by security category and length of
time that individual securities have been in a continuous unrealized loss position at June 30,
2011 are as follows:
 At June 30, 2011Less than 12 months
    
    
    Greater than 12 months
    
    
    Total(In thousands)Gross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossEstimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealizedfair value
    
    
    losses
    
    
    fair value
    
    
    losses
    
    
    fair value
    
    
    lossesMortgage-backed securities:FNMA
    
    $
    6,776
    
    
    
    200
    
    
    
    
    
    
    
    
    
    
    
    6,776
    
    
    
    200$
    6,776
    
    
    
    200
    
    
    
    
    
    
    
    
    
    
    
    6,776
    
    
    
    200
 At June 30, 2011, management has evaluated the securities in the above table and has
concluded that none of the securities with losses has impairments that are
other-than-temporary. At June 30, 2010, there were no gross unrealized losses on
mortgage-backed securities held to maturity.
 (7) Securities and Mortgage-Backed Securities Available for Sale
 The following is a comparative summary of securities and mortgage-backed securities available
for sale as of June 30, 2011 and 2010:
 June 30, 2011Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Securities available for saleU.S. Government and
federal agency obligationsDue in one year to five
years
    
    $
    74,866
    
    
    
    
    
    
    
    477
    
    
    
    74,389Due in five to ten years
    
    
    13,489
    
    
    
    6
    
    
    
    
    
    
    
    13,495Corporate bonds
    
    
    
    
    
    
    Due in one year to five
years
    
    
    2,000
    
    
    
    21
    
    
    
    
    
    
    
    2,021Equity securities
    
    
    1,472
    
    
    
    177
    
    
    
    112
    
    
    
    1,537$
    91,827
    
    
    
    204
    
    
    
    589
    
    
    
    91,442Mortgage-backed securities:FHLMC
    
    $
    9,448
    
    
    
    670
    
    
    
    
    
    
    
    10,118FNMA
    
    
    75,789
    
    
    
    1,377
    
    
    
    140
    
    
    
    77,026CMO
    
    
    414,443
    
    
    
    4,654
    
    
    
    309
    
    
    
    418,788$
    499,680
    
    
    
    6,701
    
    
    
    449
    
    
    
    505,932
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  June 30, 2010Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    unrealized
    
    
    unrealized
    
    
    faircost
    
    
    gains
    
    
    losses
    
    
    value(In thousands)Securities available for saleU.S. Government and
federal agency obligationsDue in one year to five
years
    
    $
    335,970
    
    
    
    2,398
    
    
    
    
    
    
    
    338,368Due in five to ten years
    
    
    11,500
    
    
    
    91
    
    
    
    
    
    
    
    11,591Corporate bondsDue in one year to five
years
    
    
    2,000
    
    
    
    72
    
    
    
    
    
    
    
    2,072Mutual funds
    
    
    4,671
    
    
    
    266
    
    
    
    
    
    
    
    4,937Equity securities
    
    
    1,763
    
    
    
    74
    
    
    
    82
    
    
    
    1,755$
    355,904
    
    
    
    2,901
    
    
    
    82
    
    
    
    358,723Mortgage-backed securities:FHLMC
    
    $
    17,988
    
    
    
    1,073
    
    
    
    
    
    
    
    19,061FNMA
    
    
    22,869
    
    
    
    1,192
    
    
    
    41
    
    
    
    24,020CMO
    
    
    34,399
    
    
    
    997
    
    
    
    
    
    
    
    35,396$
    75,256
    
    
    
    3,262
    
    
    
    41
    
    
    
    78,477
 Expected maturities of securities available for sale other than equity securities and
corporate bonds may differ from contractual maturities because borrowers generally have the
right to call or prepay obligations with or without penalties. The contractual maturities of
mortgage-backed securities available for sale generally exceed 20 years; however, the
effective lives are expected to be shorter due to anticipated prepayments.
 Proceeds from the sale of U.S. Government and federal agency securities available for sale for
the year ended June 30, 2011 were $169.8 million on securities with an amortized cost of
$170.0 million, resulting in gross gains and gross losses of $190,000 and $432,000,
respectively. The Company did not sell any U.S. Government and federal agency securities
available for sale during the twelve months ended June 30, 2010.
 Proceeds from the sale of mortgage-backed securities available for sale for the year ended
June 30, 2011 were $6.4 million on mortgage-backed securities with an amortized cost of $6.3
million, resulting in gross gains of $111,000. Proceeds for the year ended June 30, 2010 were
$6.1 million on mortgage-backed securities with an amortized cost of $6.0 million, resulting
in gross gains and gross losses of $112,000 and $5,000, respectively.
 The Mutual Fund caption was related to holdings of shares in an Asset Management Fund with
underlying investments in adjustable rate mortgages. The Company sold its investment in this
fund during the year ended June 30, 2011. There were no impairment charges on this security
for the year ended June 30, 2011 and 2010. Proceeds from the sale of the mutual fund were
$4.9 million and $1.0 million for year ending June 30, 2011 and 2010, respectively. The
Company recognized gains from the sale of mutual funds of $266,000 and $35,000 the year ended
June 30, 2011 and 2010, respectively.
 The Equity securities caption relates to holdings of shares in financial institutions common
stock. The Company recorded non-cash impairment charges on equity securities through earnings
of $291,000 and $202,000 for the year ended June 30, 2011 and 2010, respectively. Available
for sale securities with fair values of $500.6 million and $260.2 million at June 30, 2011 and
June 30, 2010, respectively, were pledged as collateral for advances.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Gross unrealized losses on securities and mortgage-backed securities available for sale and
the estimated market value of the related securities, aggregated by security category and
length of time that individual securities have been in a continuous unrealized loss position
at June 30, 2011 and 2010 are as follows:
 2011Less than 12 months
    
    
    Greater than 12 months
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossEstimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealizedfair value
    
    
    losses
    
    
    fair value
    
    
    losses
    
    
    fair value
    
    
    losses(In thousands)Securities available for sale:U.S. Government and
federal agency
obligations
    
    $
    74,389
    
    
    
    477
    
    
    
    
    
    
    
    
    
    
    
    74,389
    
    
    
    477Equity securities
    
    $
    614
    
    
    
    112
    
    
    
    
    
    
    
    
    
    
    
    614
    
    
    
    112$
    75,003
    
    
    
    589
    
    
    
    
    
    
    
    
    
    
    
    75,003
    
    
    
    589Mortgage-backed securities:FNMA
    
    
    29,076
    
    
    
    140
    
    
    
    
    
    
    
    
    
    
    
    29,076
    
    
    
    140CMO
    
    
    45,855
    
    
    
    309
    
    
    
    
    
    
    
    
    
    
    
    45,855
    
    
    
    309$
    74,931
    
    
    
    449
    
    
    
    
    
    
    
    
    
    
    
    74,931
    
    
    
    449
 2010Less than 12 months
    
    
    Greater than 12 months
    
    
    TotalGross
    
    
    
    
    
    
    Gross
    
    
    
    
    
    
    GrossEstimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealized
    
    
    Estimated
    
    
    unrealizedfair value
    
    
    losses
    
    
    fair value
    
    
    losses
    
    
    fair value
    
    
    losses(In thousands)Securities available for sale:Equity securities
    
    $
    908
    
    
    
    82
    
    
    
    
    
    
    
    
    
    
    
    908
    
    
    
    82$
    908
    
    
    
    82
    
    
    
    
    
    
    
    
    
    
    
    908
    
    
    
    82Mortgage-backed securities:FNMA
    
    
    24,020
    
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    24,020
    
    
    
    41$
    24,020
    
    
    
    41
    
    
    
    
    
    
    
    
    
    
    
    24,020
    
    
    
    41
 At June 30, 2011, management has evaluated the securities in the above table and has
concluded that none of the securities with losses has impairments that are
other-than-temporary. The Equity securities caption relates to holdings of shares in
financial industry common stock. Management evaluated its portfolio of equity securities and,
based on its evaluation of the financial condition and near-term prospects of an issuer,
management believed that it could recover its investment in the security.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (8) Accrued Interest Receivable
 A summary of accrued interest receivable at June 30, 2011 and 2010 is as follows:
 2011
    
    
    2010(In thousands)Mortgage Loans
    
    $
    7,797
    
    
    $
    6,834Mortgage-backed securities
    
    
    1,174
    
    
    
    515Securities
    
    
    266
    
    
    
    2,076$
    9,237
    
    
    $
    9,425
 (9) Office Properties and Equipment
 At June 30, 2011 and 2010, office properties and equipment, less accumulated depreciation and
amortization, consist of the following:
 2011
    
    
    2010(In thousands)Cost:Land
    
    $
    4,171
    
    
    
    4,171Buildings
    
    
    10,073
    
    
    
    10,074Land and building improvements
    
    
    3,719
    
    
    
    3,510Leasehold improvements
    
    
    981
    
    
    
    959Furniture and equipment
    
    
    5,579
    
    
    
    5,632Construction in progress
    
    
    479
    
    
    
    6825,002
    
    
    
    24,414Less accumulated depreciation and
amortization
    
    
    9,990
    
    
    
    9,582$
    15,012
    
    
    
    14,832
 Depreciation and amortization expense for the years ended June 30, 2011, 2010 and 2009
amounted to $856,000,$815,000 and $701,000, respectively.
 At June 30, 2011, the Company and the Bank conducted business from its corporate headquarters
in Washington Township, New Jersey, and 23 full service branch offices located in Bergen,
Hudson, Essex and Passaic counties, New Jersey.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (10) Deposits
 Deposits include checking (non-interest and interest-bearing demand deposits), money market,
savings and time deposits. The Bank accepts brokered deposits on a limited basis, when it is
deemed cost effective. At June 30, 2011 we had brokered time deposits totaling $22.9 million
with weighted average interest rates of 2.46% and weighted average maturity of 4.8 years.
There were no brokered time deposits at June 30, 2010. Deposit accounts at the Bank are
insured by the FDIC
up to a maximum of $250,000. Deposit balances at June 30, 2011 and 2010 are summarized as
follows:
 2011
    
    
    2010Weighted
    
    
    
    
    
    
    Weightedaverage
    
    
    
    
    
    
    averageAmount
    
    
    cost
    
    
    Amount
    
    
    cost(Dollars in thousands)Checking accounts
    
    $
    162,147
    
    
    
    0.42
    %
    
    $
    131,029
    
    
    
    0.71
    %Money market
deposit accounts
    
    
    390,684
    
    
    
    1.01
    
    
    
    297,540
    
    
    
    1.07Savings accounts
    
    
    152,906
    
    
    
    0.55
    
    
    
    146,675
    
    
    
    0.68Time deposits
    
    
    675,573
    
    
    
    1.48
    
    
    
    714,502
    
    
    
    1.76$
    1,381,310
    
    
    
    1.12
    %
    
    $
    1,289,746
    
    
    
    2.32
    %
 Interest expense on deposits for the years ended June 30, 2011, 2010 and 2009 is
summarized as follows:
 2011
    
    
    2010
    
    
    2009(In thousands)Checking accounts
    
    $
    855
    
    
    
    825
    
    
    
    628Money market deposit accounts
    
    
    3,177
    
    
    
    3,784
    
    
    
    2,626Savings accounts
    
    
    941
    
    
    
    1,279
    
    
    
    1,979Time deposits
    
    
    10,746
    
    
    
    15,735
    
    
    
    19,029$
    15,719
    
    
    
    21,623
    
    
    
    24,262
 Time deposits at June 30, 2011 mature as follows (in thousands):
 Year ending June 30:2012
    
    
    519,3282013
    
    
    102,6432014
    
    
    18,2542015
    
    
    14,4082016
    
    
    20,940$
    675,573
 Included in time deposits at June 30, 2011 and 2010 is $276.8 million and $271.5 million,
respectively, of deposits of $100,000 and over.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (11) Income Taxes
 Income tax expense(benefit) for the years ended June 30, 2011, 2010 and 2009 consists of the
following:
 2011
    
    
    2010
    
    
    2009(In thousands)Current:Federal
    
    $
    14,790
    
    
    
    8,976
    
    
    
    7,749State
    
    
    1,949
    
    
    
    1,657
    
    
    
    758Total current
    
    
    16,739
    
    
    
    10,633
    
    
    
    8,507Deferred:Federal
    
    
    345
    
    
    
    (2,876
    )
    
    
    (4,749
    )State
    
    
    (132
    )
    
    
    (461
    )
    
    
    262Total deferred
    
    
    213
    
    
    
    (3,337
    )
    
    
    (4,487
    )Total income tax expense
    
    $
    16,952
    
    
    
    7,296
    
    
    
    4,020
 A reconciliation between the provision for income taxes and the expected amount (computed
by multiplying income before provision for income taxes times the applicable statutory federal
income tax rate) for the years ended June 30, 2011, 2010 and 2009 is as follows:
 2011
    
    
    2010
    
    
    2009(In thousands)Income before provision for income taxes
    
    $
    45,459
    
    
    
    15,660
    
    
    
    9,572Applicable statutory federal income tax rate
    
    
    35
    %
    
    
    35
    %
    
    
    35
    %Computed expected federal income tax expense
    
    
    15,911
    
    
    
    5,481
    
    
    
    3,350Increase in federal income tax expense resulting from:State income taxes, net of federal benefit
    
    
    1,181
    
    
    
    777
    
    
    
    663Bank owned life insurance
    
    
    (424
    )
    
    
    (400
    )
    
    
    (395
    )ESOP fair market value adjustment
    
    
    160
    
    
    
    93
    
    
    
    144Non-deductible compensation
    
    
    92
    
    
    
    1,225
    
    
    
    209Other items, net
    
    
    32
    
    
    
    120
    
    
    
    49Total income tax expense
    
    $
    16,952
    
    
    
    7,296
    
    
    
    4,020
 The effective tax rates for the years ended June 30, 2011, 2010 and 2009 were 37.29%,
46.59% and 42.00%, respectively. The increase in the effective tax rate for the year ended
June 30, 2010 was primarily due to limitations on the deductibility of compensation expense.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The tax effects of temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at June 30, 2011 and 2010 are as follows:
 2011
    
    
    2010(In thousands)Deferred tax assets:Allowance for loan and real estate owned losses
    
    $
    10,426
    
    
    
    10,281Reserve for uncollected interest
    
    
    124
    
    
    
    367Premises and equipment
    
    
    299
    
    
    
    242Postretirement benefits
    
    
    7,312
    
    
    
    6,348Accrued/deferred compensation
    
    
    3,327
    
    
    
    2,714ESOP shares allocated or committed to be released
    
    
    553
    
    
    
    595Stock compensation
    
    
    2,128
    
    
    
    2,128Other than temporary loss on securities
    
    
    508
    
    
    
    1,196Charitable contribution carry forward
    
    
    620
    
    
    
    2,287Other
    
    
    554
    
    
    
    361Total gross deferred tax
assets
    
    
    25,851
    
    
    
    26,519Less valuation reserve
    
    
    689
    
    
    
    672Total deferred tax asset
    
    
    25,162
    
    
    
    25,847Deferred tax liabilities:Unrealized gain on securities available for sale
    
    
    2,414
    
    
    
    2,468Deferred loan fees
    
    
    141
    
    
    
    225Total deferred tax liabilities
    
    
    2,555
    
    
    
    2,693Net deferred tax asset
    
    $
    22,607
    
    
    
    23,154
 Sources of deferred taxes for the years ended June 30, 2011 and 2010 were due primarily
to the difference in recognizing income and expenses for book purposes and tax purposes for
various deferred loan fees, uncollected interest on loans, accrued benefit costs, book and tax
depreciation, nonallowable reserves and charitable contribution carryforwards.
 At June 30, 2008, the Company had state net operating loss carryforwards of approximately
$17.5 million having expiration dates ranging from December 2010 through 2013. During the
fiscal year ended June 30, 2009, the deferred tax asset was realized.
 At June 30, 2011 and 2010 the valuation allowance was $689,000 and $672,000, respectively.
The valuation allowance relates to the stock contribution to the charitable foundation and
impairment charges on equity securities for which tax benefits are not more likely than not to
be realized.
 At June 30, 2011, retained earnings includes approximately $15.1 million for which no
provision for income tax has been made. This amount represents an allocation of income to bad
debt deductions for tax purposes only. Under ASC 740, this amount is treated as a permanent
difference and deferred taxes are not recognized unless it appears that it will be reduced and
result in taxable income in the foreseeable future. Events that would result in taxation of
these reserves include failure to qualify as a bank for tax purposes, distributions in
complete or partial liquidation, stock
redemptions and excess distributions to shareholders. At June 30, 2011, the Company had an
unrecognized tax liability of $5.6 million with respect to this reserve.
 The Company recognizes accrued interest and penalties related to unrecognized tax benefits,
where applicable, in income tax expense. The Company did not have any uncertain tax positions
for the years ended June 30, 2011 and 2010.
 The Company files income tax returns in the United States federal jurisdiction and in New
Jersey, Pennsylvania and New York state jurisdictions. The Company is no longer subject to
federal and state income tax examinations by tax authorities for years prior to 2006.
Currently, the Company is not under examination by any taxing authority.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (12) Borrowings
 As of June 30, 2011, we had total borrowings in the amount of $509.3 million with an estimated
weighted average maturity of 4.5 years and a weighted average rate of 3.8%. As of June 30,
2010, we had total borrowings in the amount of $495.6 million with an estimated weighted
average maturity of 5.2 years and a weighted average rate of 4.0%. Borrowings consist of
advances from the FHLB of New York. The majority of the borrowings have various put options
held by the issuer, FHLB. These put options can be exercised by the FHLB after either a
certain passage of time or certain levels of the 3 month Libor interest rate. The following
table presents borrowings by stated maturity and by maturity or put date, if applicable:
 Stated
    
    
    Maturity orMaturity
    
    
    Put(In thousands)Year ending June 30:2012
    
    
    
    
    
    
    270,0002013
    
    
    40,000
    
    
    
    40,0002014
    
    
    104,934
    
    
    
    94,9342015
    
    
    93,251
    
    
    
    38,2512016
    
    
    46,130
    
    
    
    16,1302017
    
    
    70,000
    
    
    
    2018
    
    
    120,000
    
    
    
    40,0002019
    
    
    35,000
    
    
    
    10,0002020
    
    
    
    
    
    
    $
    509,315
    
    
    $
    509,315
 At June 30, 2011, borrowings are secured by mortgage-backed securities and investment
securities with a book value of $524.3 million and performing mortgage loans with an
outstanding balance of $1.3 billion. The fair value of mortgage-backed securities and
investment securities pledged as collateral for borrowings were $530.9 million and $328.0
million at June 30, 2011 and 2010, respectively. At June 30, 2011, the Company had additional
borrowing capacity of $821.4 million with the FHLB.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (13) Employee Benefit Plans
 The Company is a participant in the Financial Institutions Retirement Fund, a multi-employer
defined benefit plan. The Plan was frozen as of December 31, 2008. Full time employees whom
attained age 21 and completed one year of service were eligible to participate in this plan.
Retirement benefits are based upon a formula utilizing years of service and average
compensation, as defined. Participants are vested 100% upon the completion of five years of
service. Pension administrative expenses of $86,331, $72,000 and $31,000 were incurred for the
years ended June 30, 2011, 2010 and 2009, respectively. Company contributions for the year
ended June 30, 2011 and June 30, 2010 were $250,000 and $6,000 respectively. There were no
net contributions made for the years ended June 30, 2009.
 The Financial Institutions Retirement Fund does not segregate its assets, liabilities or costs
by participating employer. Therefore, disclosure of the accumulated benefit obligations, plan
assets and the components of annual pension expense attributable to the Company cannot be
ascertained.
 The Company has a savings incentive plan covering substantially all employees of the Company.
Contributions are currently made by the Company in an amount equal to 50% of the first 6% of
employee contributions. The contribution percentage is determined annually by the Board of
Directors. Company contributions for the years ended June 30, 2011, 2010 and 2009 were
$137,000, $121,000 and $133,000, respectively.
 The Company has a nonqualified savings incentive plan covering certain eligible employees
whose salary deferrals to the savings incentive plan are limited. Contributions to the
nonqualified savings incentive plan are currently made by the Company in an amount equal to
50% of the first 6% of employee contributions to this plan with interest calculated at the
greater of 9.00% or the Wall Street prime rate of interest. For the years ended June 30,
2011, 2010 and 2009, interest was calculated at 9.00%. Interest expenses for the years ended
June 30, 2011, 2010 and 2009 were $257,000, $197,000, and $147,000, respectively. The
contribution percentage is determined annually by the Board of Directors. The deferrals and
contributions are payable, with interest, at a future date. Until these payments are made,
the obligations to the employees are a general liability of the Company. Company
contributions for the years ended June 30, 2011, 2010 and 2009 were $103,000, $98,000 and
$62,000, respectively. The total obligation under the nonqualified savings incentive plan
that existed as of June 30, 2011 and 2010 was $3.3 million and $2.5 million, respectively.
 The Company has a nonqualified Benefit Equalization Plan (BEP Plan) which provides benefits to
employees who are disallowed certain benefits under the Companys qualified benefit plans.
The Company recorded expenses associated with the BEP Plan of $107,000, $89,000 and $201,000
for the years ended June 30, 2011, 2010 and 2009 respectively. The Plan was frozen as of
December 31, 2008 resulting in a curtailment of benefits of $454,000.
 The Company has a nonqualified Directors Retirement Plan (the Retirement Plan). The
Retirement Plan provides eligible directors an annual retirement benefit based on the monthly
meeting fee at the time of the directors retirement. The Company recorded expenses of
$613,000, $548,000 and $445,000 for the years ended June 30, 2011, 2010 and 2009,
respectively, related to the Retirement Plan.
 During 1999, the Company adopted a Post Retirement Medical Plan (the Medical Plan) for
directors and certain eligible employees. The Medical Plan provides a medical retirement
benefit at a cost to the Company limited to two times the premium at the time of the
participants retirement.
Participants are required to contribute to the plan for excess premiums above the limitation.
The Company recorded expenses of $343,000, $288,000 and $247,000 for the years ended June 30,
2011, 2010 and 2009, respectively, related to the Medical Plan.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  During 2000, the Company adopted a Deferred Directors Fee Plan (the Deferred Fee Plan) for
outside directors of the Company. Under the Deferred Fee Plan, directors may elect to defer
the receipt of their monthly and board committee fees. The fees are payable, with interest,
at a predetermined future date. Interest is calculated at the greater of 9.00% or the Wall
Street prime rate of interest. For the years ended June 30, 2011, 2010 and 2009, interest was
calculated at 9.00%. Interest expenses for the years ended June 30, 2011, 2010 and 2009 were
$330,000, $276,000, and $220,000, respectively. Until these payments are made, the
obligations to the directors are a general liability of the Company. The total obligation
under the Deferred Fee Plan that existed as of June 30, 2011 and 2010 was $4.0 million and
$3.4 million, respectively.
 During 2005, the Company adopted an Executive Supplemental Retirement Income Agreement (the
SERP) for the President/CEO of the Company. The SERP provides a retirement benefit to the
executive with a minimum payment period of 20 years. The SERP benefit is equal to 70% of the
executives average annual pre-retirement income, reduced by the benefits due to the executive
through certain other benefit plans. The Company recorded expenses of $1.3 million, $1.2
million and $806,000 for the years ended June 30, 2011, 2010 and 2009, respectively, related
to the SERP. The SERP is unfunded, and an accrued liability of $5.4 million and $4.1 million
was recorded for this plan as of June 30, 2011 and 2010, respectively.
 The following table sets forth information regarding the BEP Plan and the Retirement Plan, and
the Medical Plan at June 30, 2011 and 2010 (in thousands). As detailed above, similar
disclosures for the multi-employer defined benefit plan cannot be ascertained.
 BEP Plan and Retirement Plan
    
    
    Medical Plan2011
    
    
    2010
    
    
    2011
    
    
    2010Change in benefit obligation:Projected benefit obligation at
beginning of the year
    
    $
    5,661
    
    
    $
    4,769
    
    
    $
    3,708
    
    
    $
    3,432Service cost
    
    
    235
    
    
    
    208
    
    
    
    93
    
    
    
    73Interest cost
    
    
    292
    
    
    
    296
    
    
    
    193
    
    
    
    191Actuarial (gain) loss
    
    
    (194
    )
    
    
    4
    
    
    
    (174
    )
    
    
    (351
    )Benefits paid
    
    
    (52
    )
    
    
    (52
    )
    
    
    (48
    )
    
    
    (55
    )Discount rate change
    
    
    (132
    )
    
    
    436
    
    
    
    (98
    )
    
    
    418Projected benefit
obligation
at end of the year
    
    $
    5,810
    
    
    $
    5,661
    
    
    $
    3,674
    
    
    $
    3,708Reconciliation of plan assetsFair value of plan assets at
beginning of the year
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Actual return on plan assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Employer contributions
    
    
    52
    
    
    
    52
    
    
    
    48
    
    
    
    55Benefits paid
    
    
    (52
    )
    
    
    (52
    )
    
    
    (48
    )
    
    
    (55
    )Fair value of plan assets
at end of the year
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Funded status at end of year
    
    $
    (5,810
    )
    
    $
    (5,661
    )
    
    $
    (3,674
    )
    
    $
    (3,708
    )
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The unfunded BEP and retirement benefits of $5.8 million and $5.7 million and medical
benefits of $3.7 million and $3.7 million at June 30, 2011 and 2010 respectively, are included
in other liabilities in our consolidated balance sheet. The components of accumulated other
comprehensive income related to pension and other postretirement benefits, on a pre-tax basis,
at June 30, 2011 and 2010 are summarized in the following table (in thousands).
 BEP Plan and Retirement Plan
    
    
    Medical Plan2011
    
    
    2010
    
    
    2011
    
    
    2010Prior service cost
    
    $
    239
    
    
    $
    298
    
    
    $
    
    
    
    $
    Net actuarial loss
    
    
    823
    
    
    
    1,283
    
    
    
    677
    
    
    
    1,026Total amounts recognized in accumulated
other comprehensive income(loss)
    
    $
    1,062
    
    
    $
    1,581
    
    
    $
    677
    
    
    $
    1,026
 Net periodic benefit costs for the years ended June 30, 2011, 2010 and 2009, as well as
costs that are expected to be amortized into expense in fiscal 2012, are presented in the
following table (in thousands):
 BEP Plan and Retirement Plan
    
    
    Medical Plan2011
    
    
    2010
    
    
    2009
    
    
    2011
    
    
    2010
    
    
    2009Service cost
    
    $
    235
    
    
    $
    208
    
    
    $
    231
    
    
    $
    72
    
    
    $
    73
    
    
    $
    64Interest cost
    
    
    292
    
    
    
    296
    
    
    
    284
    
    
    
    193
    
    
    
    191
    
    
    
    199Amortization of unrecognized:Prior service cost
    
    
    60
    
    
    
    60
    
    
    
    60
    
    
    
    
    
    
    
    
    
    
    
    Net loss
    
    
    134
    
    
    
    73
    
    
    
    70
    
    
    
    78
    
    
    
    49
    
    
    
    67Total
    
    $
    721
    
    
    $
    637
    
    
    $
    645
    
    
    $
    343
    
    
    $
    313
    
    
    $
    330Amounts expected to be
amortized into net periodic
benefit costin fiscal 2011:Prior service cost
    
    $
    60
    
    
    
    
    
    
    
    
    
    
    $
    Net loss
    
    
    48
    
    
    
    
    
    
    
    
    
    
    
    57$
    108
    
    
    
    
    
    
    
    
    
    
    $
    57
 The weighted average actuarial assumptions used in the plan determinations at June 30,
2011, 2010 and 2009 were as follows:
 BEP Plan
    
    
    Retirement Plan
    
    
    Medical Plan2011
    
    
    2010
    
    
    2009
    
    
    2011
    
    
    2010
    
    
    2009
    
    
    2011
    
    
    2010
    
    
    2009Discount Rate
    
    
    4.95
    %
    
    
    5.00
    %
    
    
    6.25
    %
    
    
    5.47
    %
    
    
    5.25
    %
    
    
    6.25
    %
    
    
    5.66
    %
    
    
    5.50
    %
    
    
    6.25
    %Rate of compensation
increase
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    
    
    
    
    
    
    
    
    Medical benefits cost
rate of increase
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.00
    %
    
    
    9.00
    %
    
    
    9.00
    %
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Estimated future benefit payments, which reflect expected future service, are as follows
(in thousands):
 BEP Plan and
    
    
    MedicalRetirement Plan
    
    
    Plan2012
    
    $
    183
    
    
    $
    752013
    
    
    183
    
    
    
    1142014
    
    
    184
    
    
    
    1232015
    
    
    221
    
    
    
    1372016
    
    
    221
    
    
    
    15920172026
    
    
    1,581
    
    
    
    1,091
 Assumed health care cost trend rates have a significant effect on the amounts reported
for health care plans. A 1% change in the assumed health care cost trend rate would have the
following effects on post-retirement benefits (in thousands):
 1% increase
    
    
    1% decreaseEffect on total service cost and interest
cost
    
    $
    63
    
    
    $
    (48
    )Effect on post retirement benefits
obligation
    
    $
    701
    
    
    $
    (550
    )
 The Company invests in bank owned life insurance (BOLI) to help offset the cost of
employee benefits. BOLI involves the purchasing of life insurance by the Company on a chosen
group of employees with the Company as owner and beneficiary of the policies. BOLI is
recorded at its cash surrender value and is classified as a non-interest earning asset.
Increases in the carrying value, other than purchases, are recorded as non-interest income.
At June 30, 2011 and 2010, the Company had $44.7 million and $30.5 million, respectively, in
BOLI. Income earned on BOLI was $1.2 million for the year ended June 30, 2011 and $1.1
million for each of the years ended 2010 and 2009, respectively and is exempt from federal and
state income taxes as long as the policies are held until the death of the insured
individuals.
 The Company has a nonqualified Executive Group Term Life Plan (Split-Dollar) which provides
life insurance benefits to certain eligible employees that extends to postretirement periods.
Participants in the plan are entitled to up to two times their base annual salary, as defined
by the plan. The Company adopted ASC 715-60, Compensation: Defined Benefit Plans-Other
Postretirement, effective July 1, 2008. ASC 715-60 requires that, for split-dollar life
insurance arrangements that provide a benefit to an employee that extends to postretirement
periods, an employer should recognize a liability for future benefits. Upon adoption, the
Company recorded a charge to retained earnings of $76,000. The Company recorded expenses of
$34,000, $135,000 and $99,000 for the years ended June 30, 2011, 2010 and 2009, respectively,
related to the Split-Dollar Plan. The accrued liability recorded for this plan as of June 30,
2011 and 2010 was of $344,000 and $310,000, respectively
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (14) Stock Based Compensation
 Employee Stock Ownership Plan
 During 2006, the Company adopted an Employee Stock Ownership Plan (the ESOP). The ESOP is a
tax-qualified plan designed to invest primarily in the Companys common stock. The ESOP
provides employees with the opportunity to receive a funded retirement benefit from the Bank,
based primarily on the value of the Companys common stock. The ESOP purchased 2,384,466
shares of the Companys common stock in the Companys initial public offering at a price of
$6.67 per share. The ESOP purchased additional shares, in the open market, of 1,654,529 in
conjunction with the Companys second step transaction at an average price of $10.36 during
June 2010. These purchases were funded with a loan from the Company to the ESOP. The
outstanding loan balance at June 30, 2011 and 2010 was $30.4 million and $31.8 million,
respectively. The shares of Companys common stock purchased are pledged as collateral for
the loan. Shares are released from the pledge for allocation to participants as loan payments
are made. At June 30, 2011, shares allocated to participants were 504,922 since the plan
inception and shares committed to be released were 147,253. Shares that are committed to be
released will be allocated to participants at the end of the plan year (December 31). ESOP shares that were unallocated or not yet committed to be released totaled 3,389,820 at June 30,
2011 and had a fair value of $43.4 million. ESOP compensation expense for the years ended
June 30, 2011, 2010 and 2009 was $1.7 million $1.3 million and $1.2 million, respectively,
representing the fair market value of shares allocated or committed to be released during the
year.
 The Company also has established an ESOP restoration plan, which is a non-qualified plan that
provides supplemental benefits to certain executives who are prevented from receiving the full
benefits contemplated by the employee stock ownership plans benefit formula. The
supplemental benefits consist of payments representing shares that cannot be allocated to
participants under the ESOP due to legal limitations imposed on tax-qualified plans.
Compensation expense related to this plan amounts to $901,000, $1.1 million and $111,000, for
the years ended June 30, 2011, 2010 and 2009, respectively. The total obligation under the
restoration plan that existed as of June 30, 2011 and 2010 was $2.3 million and $1.4 million,
respectively. The obligations to the executives are a general liability of the Company.Equity Incentive Plan
 At the Special Meeting of Stockholders of the Company held on July 26, 2011, the stockholders
of the Company approved the Oritani Financial Corp. 2011 Equity Incentive Plan. On August 18,
2011, certain officers and employees of the Company were granted in aggregate 3,033,750 stock
options and 1,227,100 shares of restricted stock, and non-employee directors received in
aggregate 932,500 stock options and 373,000 shares of restricted stock. We recognize stock
based compensation expense based on the grant-date fair value of those awards and options over
the requisite service period in accordance with ASC 718.
 ASC 718- requires the Company to report as a financing cash flow the benefits of realized tax
deductions in excess of the deferred tax benefits previously recognized for compensation
expense. Excess tax benefits recognized in 2010 totaled $49,000. There were no such excess
tax benefits in fiscal 2011 and 2009. The Company classified share-based compensation for
employees and outside directors within compensation and fringe benefits in the consolidated
statements of income to correspond with the same line item as the cash compensation paid.
 Stock options vest over a five-year service period and expire ten years from issuance.
Options vest immediately upon a change in control and expire 90 days after termination of
service, excluding disability or retirement. The Company recognizes compensation expense for
all option grants over the awards respective requisite service periods. Management estimated
the fair values of all option grants using the Black-Scholes option-pricing model. Since
there is limited historical information
on the volatility of the Companys stock, management considered the average volatilities of
similar entities for an appropriate period in determining the assumed volatility rate used in
the estimation of fair value. Management estimated the expected life of the options using the
simplified method. The Treasury yield in effect at the time of the grant provides the
risk-free rate for periods within the contractual life of the option.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The fair value of the options was estimated on the date of the grant using Black-Scholes
options-pricing model with the following assumptions:
 Nov. 2010
    
    
    May 2010
    
    
    May 2008Expected dividend yield
    
    
    4.33
    %
    
    
    3.93
    %
    
    
    3.55
    %Expected volatility
    
    
    38.22
    %
    
    
    37.79
    %
    
    
    28.22
    %Risk-free interest rate
    
    
    1.91
    %
    
    
    2.53
    %
    
    
    3.37
    %Expected option life
    
    
    6.5
    
    
    
    6.5
    
    
    
    6.5
 The Company recorded $23,000, $4.9 million and $1.3 million of share based compensation
expense related to the options granted for the years ended June 30, 2011, 2010 and 2009,
respectively. Expected future expense related to the non-vested options outstanding at June
30, 2011 is $124,000 over a weighted average period of 4.7 years.
 The following is a summary of the Companys stock option activity and related information for
its options plan for the year ended June 30, 2011:
 WeightedWeighted
    
    
    Weighted
    
    
    AverageNumber of
    
    
    Average
    
    
    Average
    
    
    RemainingStock
    
    
    Grant Date
    
    
    Exercise
    
    
    ContractualOptions
    
    
    Fair Value
    
    
    Price
    
    
    LifeOutstanding at June 30, 2010
    
    
    2,792,588
    
    
    $
    2.30
    
    
    $
    10.43
    
    
    
    7.9Granted
    
    
    20,000
    
    
    
    2.73
    
    
    
    11.11
    
    
    
    10.0Exercised
    
    
    (55,354
    )
    
    
    2.29
    
    
    
    10.43
    
    
    
    7.1Forfeited/Expired
    
    
    (9,935
    )
    
    
    2.29
    
    
    
    10.43
    
    
    
    6.8Outstanding at June 30, 2011
    
    
    2,747,299
    
    
    $
    2.30
    
    
    $
    10.43
    
    
    
    6.9Exercisable at June 30, 2011
    
    
    2,703,300
 Restricted shares vested over a five-year service period on the anniversary date of the
grant or upon a change in control. The product of the number of shares granted and the grant
date market price of the Companys common stock determines the fair value of restricted shares
under the Companys restricted stock plan. The Company recognizes compensation expense for
the fair value of restricted shares on a straight-line basis over the requisite service
period.
 The Company recorded $9.5 million and $2.6 million of share-based compensation expense related
to restricted shares for the years ended June 30, 2010 and 2009, respectively. The Company
did not have share-based compensation expense related to restricted shares for the year ended
June 30, 2011.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (15) Commitments and Contingencies
 In the ordinary course of our operations, we enter into certain contractual obligations. Such
obligations include operating leases for premises and equipment. Certain facilities are
occupied under long-term operating leases which expire on various dates. Certain leases also
provide for renewal options. Total rent expense was $496,000,$435,000 and $388,000 for the
years ended June 30, 2011, 2010 and 2009, respectively. Aggregate minimum lease payments for
the remainder of the leases are as follows (in thousands):
 Year ending June 30:2012
    
    $
    5392013
    
    
    4692014
    
    
    3672015
    
    
    2712016
    
    
    207Thereafter
    
    
    177$
    2,030
 The Company had outstanding commitments to purchase when issued securities of $10.0
million at June 30, 2010. There were no outstanding commitments to purchase when issued
securities at June 30, 2011.
 In the normal course of business, the Company may be a party to various outstanding legal
proceedings and claims. In the opinion of management, the financial position of the Company
will not be materially affected by the outcome of such legal proceedings and claims.
 (16) Regulatory Capital Requirements
 Deposits at the Bank are insured up to standard limits of coverage provided by the Deposit
Insurance Fund (DIF) of the FDIC. The Bank is a New Jersey state chartered savings bank and
is subject to comprehensive regulation, supervision and periodic examinations by the FDIC and
by the NJDOBI. The Company is regulated by the FRB.
 FDIC regulations require banks to maintain minimum levels of regulatory capital. Under the
regulations in effect at June 30, 2011, the Bank and the Company are required to maintain (a)
a minimum leverage ratio of Tier 1 capital to total adjusted assets of 4.0%, and (b) minimum
ratios of Tier 1 and total capital to risk-weighted assets of 4.0% and 8.0%, respectively.
 Under its prompt corrective action regulations, the FDIC is required to take certain
supervisory actions (and may take additional discretionary actions) with respect to an
undercapitalized institution. Such actions could have a direct material effect on the
institutions financial statements. The regulations establish a framework for the
classification of savings institutions into five categories: well capitalized, adequately
capitalized, undercapitalized, significantly undercapitalized, and critically
undercapitalized. Generally, an institution is considered well capitalized if it has a
leverage (Tier 1) capital ratio of at least 5%; a Tier 1 risk-based capital ratio of at least
6%; and a total risk-based capital ratio of at least 10%.
 The foregoing capital ratios are based in part on specific quantitative measures of assets,
liabilities and certain off-balance-sheet items as calculated under regulatory accounting
practices. Capital amounts and classifications are also subject to qualitative judgments by
the FDIC about capital components, risk weightings and other factors.
 Management believes that, as of June 30, 2011, the Bank meets all capital adequacy
requirements to which it is subject. Further, the most recent FDIC notification categorized
the Bank as a well-capitalized institution under the prompt corrective action regulations.
There have been no conditions or events since that notification that management believes have
changed the Banks capital classification.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The following is a summary of the Companys and the Banks actual capital amounts and ratios
as of June 30, 2011 and 2010, compared to the FDIC minimum capital adequacy requirements and
the FDIC requirements for classification as a well-capitalized institution.
 FDIC  for
    
    
    FDIC  to be well capitalizedcapital adequacy
    
    
    under promptActual
    
    
    purposes
    
    
    corrective actionAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(Dollars in thousands)Company:As of June 30, 2011:Total capital (to risk-weighted
assets)
    
    $
    666,533
    
    
    
    35.46
    %
    
    $
    150,361
    
    
    
    8.00
    %
    
    
    187,952
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted
assets)
    
    
    643,002
    
    
    
    34.21
    
    
    
    75,181
    
    
    
    4.00
    
    
    
    112,771
    
    
    
    6.00Tier 1 capital (to average assets)
    
    
    643,002
    
    
    
    25.09
    
    
    
    102,496
    
    
    
    4.00
    
    
    
    128,120
    
    
    
    5.00As of June 30, 2010:Total capital (to risk-weighted
assets)
    
    $
    662,334
    
    
    
    39.64
    %
    
    $
    133,678
    
    
    
    8.00
    %
    
    
    167,097
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted
assets)
    
    
    641,385
    
    
    
    38.38
    
    
    
    66,839
    
    
    
    4.00
    
    
    
    100,258
    
    
    
    6.00Tier 1 capital (to average assets)
    
    
    641,385
    
    
    
    31.58
    
    
    
    81,244
    
    
    
    4.00
    
    
    
    101,555
    
    
    
    5.00
 FDIC  for
    
    
    FDIC  to be well capitalizedcapital adequacy
    
    
    under promptActual
    
    
    purposes
    
    
    corrective actionAmount
    
    
    Rate
    
    
    Amount
    
    
    Rate
    
    
    Amount
    
    
    Rate(Dollars in thousands)Bank:As of June 30, 2011:Total capital (to risk-weighted
assets)
    
    $
    438,588
    
    
    
    23.81
    %
    
    $
    147,385
    
    
    
    8.00
    %
    
    
    184,232
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted
assets)
    
    
    415,516
    
    
    
    22.55
    
    
    
    73,693
    
    
    
    4.00
    
    
    
    110,539
    
    
    
    6.00Tier 1 capital (to average assets)
    
    
    415,516
    
    
    
    16.41
    
    
    
    101,263
    
    
    
    4.00
    
    
    
    126,579
    
    
    
    5.00As of June 30, 2010:Total capital (to risk-weighted
assets)
    
    $
    408,206
    
    
    
    24.79
    %
    
    $
    131,720
    
    
    
    8.00
    %
    
    
    164,650
    
    
    
    10.00
    %Tier 1 capital (to risk-weighted
assets)
    
    
    387,439
    
    
    
    23.53
    
    
    
    65,860
    
    
    
    4.00
    
    
    
    98,790
    
    
    
    6.00Tier 1 capital (to average assets)
    
    
    387,439
    
    
    
    18.32
    
    
    
    84,604
    
    
    
    4.00
    
    
    
    105,756
    
    
    
    5.00
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (17) Fair Value Measurements
 The Company adopted ASC 820, Fair Value Measurements and Disclosures, on July 1, 2008. ASC
820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities (level 1 measurements) and the
lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair
value hierarchy under ASC 820 are described below:
 Basis of Fair Value Measurement:
 Level 1: Unadjusted quoted prices in active markets that are accessible at the
measurement date for identical unrestricted assets or liabilities;
 Level 2: Quoted prices in markets that are not active, or inputs that are observable
either directly or indirectly, for substantially the full term of the asset or
liability;
 Level 3: Price or valuation techniques that require inputs that are both significant
to the fair value measurement and unobservable (i.e. supported with little or no
market activity).
 A financial instruments level within the fair value hierarchy is based on the lowest level of
input that is significant to the fair value measurement.
 The Companys cash instruments are generally classified within Level 1 or Level 2 of the fair
value hierarchy because they are valued using quoted market prices, broker or dealer
quotations, or alternative pricing sources with reasonable levels of price transparency.
 Securities and Mortgage-Backed Securities Available for Sale:The estimated fair values for
securities and mortgage-backed securities available for sale are obtained from an independent
nationally recognized third-party pricing service for identical assets or significantly
similar securities. The estimated fair values are derived from quoted
market prices or using matrix pricing. The significant inputs
utilized are primarily based on market data obtained from sources independent of the Company (observable inputs,) and
are therefore classified as Level 2 within the fair value hierarchy. The estimated fair value
of equity securities classified as Level 1, are derived from quoted market prices in active
markets.
 Also, the Company may be required, from time to time, to measure the fair value of certain
other financial assets on a nonrecurring basis in accordance with U.S. generally accepted
accounting principles. The adjustments to fair value usually result from the application of
lower-of-cost-or-market accounting or write downs of individual assets.
 Impaired Loans:Impaired loans are valued utilizing independent appraisals that rely upon
quoted market prices for similar assets in active markets. These appraisals include
adjustments to comparable assets based on the appraisers market knowledge and experience.
The appraisals are adjusted downward by management, as necessary, for changes in relevant
valuation factors subsequent to the appraisal date and are considered level 3 inputs.
 Real Estate Owned:Assets acquired through foreclosure or deed in lieu of foreclosure is
recorded at estimated fair value less estimated selling costs when acquired, thus establishing
a new cost basis. Fair value is generally based on independent appraisals. These appraisals
include adjustments to comparable assets based on the appraisers market knowledge and
experience, and are considered level 3 inputs. When an asset is acquired, the excess of the
loan balance over fair value, less estimated selling costs, is charged to the allowance for
loan losses. If the estimated fair value of the asset declines, a write-down is recorded
through expense. The valuation of foreclosed assets is subjective in nature and may be
adjusted in the future because of changes in the economic conditions.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The following table sets forth the Companys financial assets that were accounted for at fair
values as of June 30, 2011 and 2010, by level within the fair value hierarchy. As required by
ASC 820, financial assets are classified in their entirety based on the lowest level of input
that is significant to the fair value measurements:
 Fair Value Measurements at Reporting Date using:Quoted Pricesin Active
    
    
    SignificantMarkets for
    
    
    OtherIdentical
    
    
    Observable
    
    
    UnobservableFair Value as of
    
    
    Assets
    
    
    Inputs
    
    
    InputsJune 30, 2011
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)(In thousands)Measured on a recurring basis:Assets:Securities available for saleU.S. Government and federal agency obligations
    
    $
    87,884
    
    
    $
    
    
    
    $
    87,884
    
    
    $
    Corporate bonds
    
    
    2,021
    
    
    
    
    
    
    
    2,021
    
    
    
    Mutual Funds
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Equity Securities
    
    
    1,537
    
    
    
    1,537
    
    
    
    
    
    
    
    Total securities available for sale
    
    
    91,442
    
    
    
    1,537
    
    
    
    89,905
    
    
    
    Mortgage-backed securities available for saleFHLMC
    
    
    10,118
    
    
    
    
    
    
    
    10,118
    
    
    
    FNMA
    
    
    77,026
    
    
    
    
    
    
    
    77,026
    
    
    
    CMO
    
    
    418,788
    
    
    
    
    
    
    
    418,788
    
    
    
    Total mortgage-backed securities available
for sale
    
    
    505,932
    
    
    
    
    
    
    
    505,932
    
    
    
    Total measured on a recurring basis
    
    $
    597,374
    
    
    $
    1,537
    
    
    $
    595,837
    
    
    $
    Measured on a non-recurring basis:Assets:Impaired loans:Commercial real estate
    
    $
    1,129
    
    
    $
    
    
    
    $
    
    
    
    $
    1,129Construction and loan loans
    
    
    10,687
    
    
    
    
    
    
    
    
    
    
    
    10,687Other loans
    
    
    825
    
    
    
    
    
    
    
    
    
    
    
    825Total impaired loans
    
    
    12,641
    
    
    
    
    
    
    
    
    
    
    
    12,641Real estate ownedResidential
    
    
    1,926
    
    
    
    
    
    
    
    
    
    
    
    1,926Commercial real estate
    
    
    1,441
    
    
    
    
    
    
    
    
    
    
    
    1,441Construction and loand loans
    
    
    600
    
    
    
    
    
    
    
    
    
    
    
    600Total real estate owned
    
    
    3,967
    
    
    
    
    
    
    
    
    
    
    
    3,967Total measured on a non-recurring basis
    
    $
    16,608
    
    
    $
    
    
    
    $
    
    
    
    $
    16,608
  104




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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Fair Value Measurements at Reporting Date using:Quoted Pricesin Active
    
    
    SignificantMarkets for
    
    
    OtherIdentical
    
    
    Observable
    
    
    UnobservableFair Value as of
    
    
    Assets
    
    
    Inputs
    
    
    InputsJune 30, 2010
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)(In thousands)Measured on a recurring basis:Assets:Securities available for saleU.S. Government and federal agency obligations
    
    $
    349,959
    
    
    $
    67,050
    
    
    $
    282,909
    
    
    $
    Corporate bonds
    
    
    2,072
    
    
    
    
    
    
    
    2,072
    
    
    
    Mutual Funds
    
    
    4,937
    
    
    
    4,937
    
    
    
    
    
    
    
    Equity Securities
    
    
    1,755
    
    
    
    1,755
    
    
    
    
    
    
    
    Total securities available for sale
    
    
    358,723
    
    
    
    73,742
    
    
    
    284,981
    
    
    
    Mortgage-backed securities available for saleFHLMC
    
    
    19,061
    
    
    
    
    
    
    
    19,061
    
    
    
    FNMA
    
    
    24,020
    
    
    
    
    
    
    
    24,020
    
    
    
    CMO
    
    
    35,396
    
    
    
    
    
    
    
    35,396
    
    
    
    Total mortgage-backed securities available for
sale
    
    
    78,477
    
    
    
    
    
    
    
    78,477
    
    
    
    Total measured on a recurring basis
    
    $
    437,200
    
    
    $
    73,742
    
    
    $
    363,458
    
    
    $
    Measured on a non-recurring basis:Assets:Impaired loans:Multifamily
    
    $
    5,454
    
    
    $
    
    
    
    $
    
    
    
    $
    5,454Commercial real estate
    
    
    14,973
    
    
    
    
    
    
    
    
    
    
    
    14,973Total impaired loans
    
    
    20,427
    
    
    
    
    
    
    
    
    
    
    
    20,427Real estate ownedCommercial real estate
    
    
    2,656
    
    
    
    
    
    
    
    
    
    
    
    2,656Construction and loan loans
    
    
    375
    
    
    
    
    
    
    
    
    
    
    
    375Total real estate owned
    
    
    3,031
    
    
    
    
    
    
    
    
    
    
    
    3,031Total measured on a non-recurring basis
    
    $
    23,458
    
    
    $
    
    
    
    $
    
    
    
    $
    23,458
 (18) Fair Value of Financial Instruments
 ASC 825, Financial Instruments, requires that the Company disclose estimated fair values for
its financial instruments. Fair value estimates, methods and assumptions are set forth below
for the Companys financial instruments.
 Cash and Cash Equivalents
 For cash on hand and due from banks and federal funds sold and short-term investments, the
carrying amount approximates fair value.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Securities
 The fair value of securities is estimated based on bid quotations received from securities
dealers, if available. If a quoted market price is not available, fair value is estimated
using quoted market prices of similar instruments, adjusted for differences between the quoted
instruments and the instruments being valued.FHLB of New York Stock
 The fair value for FHLB stock is its carrying value, since this is the amount for which it
could be redeemed. There is no active market for this stock and the Bank is required to
maintain a minimum balance based upon the unpaid principal of home mortgage loans.Loans
 Fair values are estimated for portfolios of loans with similar financial characteristics.
Loans are segregated by type such as residential mortgage, construction, land and consumer.
Each loan category is further segmented into fixed and adjustable rate interest terms and by
performing and nonperforming categories.
 Fair value of performing loans is estimated by discounting cash flows using estimated market
discount rates at which similar loans would be made to borrowers and reflect similar credit
ratings and interest rate risk for the same remaining maturities. This method of estimating
fair value does not incorporate the exit-price concept of fair value prescribed by ASC 820,
Fair Value Measurements and Disclosures.
 Fair value for significant nonperforming loans is based on recent external appraisals of
collateral securing such loans, adjusted for the timing of anticipated cash flows.Deposit Liabilities
 The fair value of deposits with no stated maturity, such as checking accounts, savings, and
money market accounts, is equal to the amount payable on demand as of June 30, 2011 and 2010.
The fair value of certificates of deposit is based on the discounted value of contractual cash
flows. The discount rate is estimated using the rates currently offered for deposits of
similar remaining maturities.Borrowings
 The fair value of borrowings is calculated based on the discounted cash flow of contractual
amounts due, using market rates currently available for borrowings of similar amount and
remaining maturity.Commitments to Extend Credit and to Purchase or Sell Securities
 The fair value of commitments to extend credit is estimated using the fees currently charged
to enter into similar agreements, taking into account the remaining terms of the agreements
and the present creditworthiness of the counterparties. For fixed rate loan commitments, fair
value also considers the difference between current levels of interest rates and the committed
rates. The fair value of commitments to purchase or sell securities is estimated based on bid
quotations received from securities dealers.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  The estimated fair values of the Companys financial instruments are presented in the
following table. Since the fair value of off-balance-sheet commitments approximates book
value, these disclosures are not included.
 2011
    
    
    2010Carrying
    
    
    Fair
    
    
    Carrying
    
    
    Fairvalue
    
    
    value
    
    
    value
    
    
    valueFinancial assets:Cash and cash equivalents
    
    $
    133,243
    
    
    
    133,243
    
    
    
    346,339
    
    
    
    346,339Securities available for sale
    
    
    91,442
    
    
    
    91,442
    
    
    
    358,723
    
    
    
    358,723Mortgage-backed securities
held to maturity
    
    
    37,609
    
    
    
    38,522
    
    
    
    66,468
    
    
    
    68,622Mortgage-backed securities
available for sale
    
    
    505,932
    
    
    
    505,932
    
    
    
    78,477
    
    
    
    78,477Federal Home Loan Bank of
New York stock
    
    
    26,844
    
    
    
    26,844
    
    
    
    25,081
    
    
    
    25,081Loans
    
    
    1,672,849
    
    
    
    1,709,785
    
    
    
    1,505,880
    
    
    
    1,604,852Financial liabilities  deposits
    
    
    1,381,310
    
    
    
    1,375,633
    
    
    
    1,289,746
    
    
    
    1,293,912Financial liabilities  borrowings
    
    
    509,315
    
    
    
    529,803
    
    
    
    495,552
    
    
    
    549,967
 Limitations
 Fair value estimates are made at a specific point in time, based on relevant market
information and information about the financial instrument. These estimates do not reflect any
premium or discount that could result from offering for sale at one time the Companys entire
holdings of a particular
financial instrument. Because no market exists for a significant portion of the Companys
financial instruments, fair value estimates are based on judgments regarding future expected
loss experience, current economic conditions, risk characteristics of various financial
instruments, and other factors. These estimates are subjective in nature and involve
uncertainties and matters of significant judgment and, therefore, cannot be determined with
precision. Changes in assumptions could significantly affect the estimates.
 Fair value estimates are based on existing on- and off-balance-sheet financial instruments
without attempting to estimate the value of anticipated future business and the value of
assets and liabilities that are not considered financial instruments. Significant assets and
liabilities that are not considered financial assets or liabilities include the mortgage
banking operation, deferred tax assets, and premises and equipment. In addition, the tax
ramifications related to the realization of the unrealized gains and losses can have a
significant effect on fair value estimates and have not been considered in the estimates.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (19) Parent Company Only Financial Statements
 The following condensed financial information for Oritani Financial Corp. (parent company
only) reflect the investment in its wholly-owned subsidiaries, Oritani Bank, Oritani, LLC and
Hampshire Financial, LLC, using the equity method of accounting.
 Balance Sheets
 June 30,2011
    
    
    2010(In thousands)Assets:Cash
    
    $
    75
    
    
    
    16Fed Funds
    
    
    161,438
    
    
    
    186,237Mortgage Loans, net
    
    
    31,056
    
    
    
    31,609ESOP loan
    
    
    30,374
    
    
    
    31,810Securities available for sale, at market value
    
    
    1,537
    
    
    
    1,755Accrued Interest Receivable
    
    
    1,065
    
    
    
    187Investment in Subsidiaries
    
    
    419,853
    
    
    
    391,597Other assets
    
    
    65
    
    
    
    260Total Assets
    
    $
    645,463
    
    
    
    643,471Liabilities and EquityTotal Liabilities
    
    $
    51
    
    
    
    78Total Equity
    
    
    645,412
    
    
    
    643,393Total Liabilities and Equity
    
    $
    645,463
    
    
    
    643,471
 Year Ended June 30,2011
    
    
    2010
    
    
    2009(In thousands)Interest on mortgage loans
    
    $
    1,965
    
    
    $
    1,634
    
    
    $
    1,372Interest on ESOP loan
    
    
    1,866
    
    
    
    244
    
    
    
    809Interest income on fed funds
    
    
    453
    
    
    
    39
    
    
    
    256Impairment chnarge on securities
    
    
    (291
    )
    
    
    (202
    )
    
    
    (398
    )Other income
    
    
    62
    
    
    
    65
    
    
    
    81Equity in undistributed earnings of subsidiary
    
    
    26,558
    
    
    
    7,502
    
    
    
    4,758Total income
    
    
    30,613
    
    
    
    9,282
    
    
    
    6,878Other expenses
    
    
    578
    
    
    
    429
    
    
    
    466Income before income tax expense
    
    
    30,035
    
    
    
    8,853
    
    
    
    6,412Income tax expense
    
    
    1,528
    
    
    
    489
    
    
    
    860Net income
    
    $
    28,507
    
    
    $
    8,364
    
    
    $
    5,552
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  Statements of Cash Flows
 Year Ended June 30,2011
    
    
    2010
    
    
    2009(In thousands)Cash flows from operating activities:Net income
    
    $
    28,507
    
    
    
    8,364
    
    
    
    5,552Adjustments to reconcile net income to net cash
provided by operating activities:Impairment charge on securities
    
    
    291
    
    
    
    202
    
    
    
    398Dividends/distributions from subsidiaries
    
    
    364
    
    
    
    9,995
    
    
    
    10,241Equity in undistributed earnings of subsidiary
    
    
    (26,558
    )
    
    
    (7,502
    )
    
    
    (4,758
    )(Increase) decrease in accrued interest
receivable
    
    
    (878
    )
    
    
    (50
    )
    
    
    262Increase in other assets
    
    
    167
    
    
    
    (101
    )
    
    
    (113
    )Increase in other liabilities
    
    
    (27
    )
    
    
    22
    
    
    
    436Net cash provided by operating activities
    
    
    1,866
    
    
    
    10,930
    
    
    
    12,018Cash flows from investing activitiesAdditional investments in subsidiaries
    
    
    
    
    
    
    (201,204
    )
    
    
    (4,759
    )Loan to ESOP
    
    
    
    
    
    
    (17,134
    )
    
    
    Principal collected on ESOP loan
    
    
    1,436
    
    
    
    630
    
    
    
    401(Increase) decrease in mortgage loans, net
    
    
    553
    
    
    
    (7,311
    )
    
    
    (5,639
    )Net cash provided by (used in) investing
activities
    
    
    1,989
    
    
    
    (225,019
    )
    
    
    (9,997
    )Cash flows from financing activitiesDividends paid to shareholders
    
    
    (19,724
    )
    
    
    (2,830
    )
    
    
    Purchase of treasury stock
    
    
    (9,300
    )
    
    
    (1,231
    )
    
    
    (49,989
    )Stock issued upon exercise of stock options
    
    
    429
    
    
    
    
    
    
    
    Treasury stock issued
    
    
    
    
    
    
    
    
    
    
    2,497Capital contribution
    
    
    
    
    
    
    209
    
    
    
    Proceeds from stock offering, net
    
    
    
    
    
    
    401,752
    
    
    
    Cash (used in) provided by financing activities
    
    
    (28,595
    )
    
    
    397,900
    
    
    
    (47,492
    )Net change in cash in bank
    
    
    (24,740
    )
    
    
    183,811
    
    
    
    (45,471
    )Cash at beginning of period
    
    
    186,253
    
    
    
    2,442
    
    
    
    47,913Cash at end of period
    
    $
    161,513
    
    
    
    186,253
    
    
    
    2,442
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (20) Selected Quarterly Financial Data (Unaudited)
 The following tables are a summary of certain quarterly financial data for the fiscal years
ended June 30, 2011 and 2010.
 Fiscal 2011 Quarter EndedSeptember 30
    
    
    December 31
    
    
    March 31
    
    
    June 30(Dollars in thousands)Selected Operating Data:Interest income
    
    $
    28,756
    
    
    
    29,337
    
    
    
    29,592
    
    
    
    29,668Interest expense
    
    
    9,453
    
    
    
    9,050
    
    
    
    9,002
    
    
    
    8,825Net interest income
    
    
    19,303
    
    
    
    20,287
    
    
    
    20,590
    
    
    
    20,843Provision for loan losses
    
    
    2,000
    
    
    
    2,500
    
    
    
    2,300
    
    
    
    2,500Net interest income after
provision for loan losses
    
    
    17,303
    
    
    
    17,787
    
    
    
    18,290
    
    
    
    18,343Other income
    
    
    1,730
    
    
    
    1,186
    
    
    
    1,075
    
    
    
    1,461Other expense
    
    
    7,728
    
    
    
    7,761
    
    
    
    8,282
    
    
    
    7,945Income before income tax expense
    
    
    11,305
    
    
    
    11,212
    
    
    
    11,083
    
    
    
    11,859Income tax expense
    
    
    4,155
    
    
    
    4,116
    
    
    
    4,078
    
    
    
    4,603Net income
    
    $
    7,150
    
    
    
    7,096
    
    
    
    7,005
    
    
    
    7,256Earnings per common share-basic and diluted
    
    $
    0.14
    
    
    
    0.13
    
    
    
    0.13
    
    
    
    0.14
 Fiscal 2010 Quarter EndedSeptember 30
    
    
    December 31
    
    
    March 31
    
    
    June 30(Dollars in thousands)Selected Operating Data:Interest income
    
    $
    25,779
    
    
    
    25,467
    
    
    
    27,020
    
    
    
    27,073Interest expense
    
    
    11,560
    
    
    
    11,057
    
    
    
    10,138
    
    
    
    9,631Net interest income
    
    
    14,219
    
    
    
    14,410
    
    
    
    16,882
    
    
    
    17,442Provision for loan losses
    
    
    2,550
    
    
    
    2,500
    
    
    
    2,500
    
    
    
    2,450Net interest income after
provision for loan losses
    
    
    11,669
    
    
    
    11,910
    
    
    
    14,382
    
    
    
    14,992Other income
    
    
    2,546
    
    
    
    1,067
    
    
    
    1,243
    
    
    
    630Other expense
    
    
    6,828
    
    
    
    8,166
    
    
    
    7,424
    
    
    
    20,361Income before income tax expense
    
    
    7,387
    
    
    
    4,811
    
    
    
    8,201
    
    
    
    (4,739
    )Income tax expense
    
    
    2,904
    
    
    
    1,882
    
    
    
    3,189
    
    
    
    (679
    )Net income
    
    $
    4,483
    
    
    
    2,929
    
    
    
    5,012
    
    
    
    (4,060
    )Earnings per common share-basic and diluted
    
    $
    0.08
    
    
    $
    0.05
    
    
    $
    0.09
    
    
    $
    (0.08
    )
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  (21) Earnings Per Share
 The following is a summary of the Companys earnings per share calculations and reconciliation
of basic to diluted earnings per share.
 For the Years Ended June 30,2011
    
    
    2010
    
    
    2009(in thousands, except earnings per share data)Net income
    
    $
    28,507
    
    
    
    S          8,364
    
    
    
    S          5,552Undistributed earnings allocated to unvested
restricted awards
    
    
    
    
    
    
    (190
    )
    
    
    (93
    )Net income available to common shareholders
    
    $
    28,507
    
    
    $
    8,174
    
    
    $
    5,459Weighted average common shares outstanding  basic
    
    
    52,661
    
    
    
    53,559
    
    
    
    55,107Effect of dilutive non-vested shares and stock options
outstanding
    
    
    229
    
    
    
    
    
    
    
    Weighted average common shares outstanding  diluted
    
    
    52,890
    
    
    
    53,559
    
    
    
    55,107Earnings per share-basic and diluted
    
    $
    0.54
    
    
    $
    0.15
    
    
    $
    0.10
 (22) Recent Accounting Pronouncements
 In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05, Comprehensive
Income (Topic 220): Presentation of Comprehensive Income. Under the new guidance, the
components of net income and the components of other comprehensive income can be presented
either in a single continuous statement of comprehensive income or in two separate but
consecutive statements. This guidance eliminates the option to present components of other
comprehensive income as part of the statement of changes in shareholders equity but does not
change the items that must be reported in other comprehensive income or when an item of other
comprehensive income must be reclassified to net income. The amendments in this update should
be applied retrospectively and are effective for fiscal years, and interim periods within
those years, beginning after December 15, 2011. Early adoption is permitted. Adoption of
this guidance is expected to result in presentation changes to the Companys statements of
income and the addition of a statement of comprehensive income. The adoption will have no
affect on the Companys balance sheets.
 In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments
to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS.
This guidance is the result of work by the FASB and the International Accountings Standards
Board (IASB) to develop common requirements for measuring fair value and fair value
disclosures in accordance with U.S. GAAP and International Financial Reporting Standards
(IFRS). The amendments change the wording used to describe many of the requirements in U.S.
GAAP for measuring fair value and for disclosing information about fair value measurements.
The amendments in this update should be applied prospectively and are effective for interim
and annual periods beginning after December 15, 2011. Early adoption is not permitted. We do
not expect the adoption of this Accounting Standard Update to have a material effect on the
Companys consolidated financial statements.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  In April 2011, the FASB issued Accounting Standards Update No. 2011-02, Receivables (Topic
310): A Creditors Determination of Whether a Restructuring Is a Troubled Debt Restructuring
, to amend previous guidance with respect to troubled debt restructurings. This updated
guidance is designed to assist creditors with determining whether or not a restructuring
constitutes a troubled debt restructuring. In particular, additional guidance has been added
to help creditors determine whether a concession has been granted and whether a debtor is
experiencing financial difficulties. Both of these conditions are required to be met for a
restructuring to constitute a troubled debt restructuring. The amendments in the update are
effective for the first interim period beginning on or after June 15, 2011, and should be
applied retrospectively to the beginning of the annual period of adoption. The provisions of
this update are not expected to have a material impact on the Companys financial position,
results or operations or cash flows.
 In July 2010, the FASB issued Accounting Standards Update 2010-20, which amends ASC Topic 310
(Receivables) to require significant new disclosures about the credit quality of financing
receivables and the allowance for credit losses. The objective of the new disclosures is to
improve financial statement users understanding of (1) the nature of an entitys credit risk
associated with its financing receivables, and (2) the entitys assessment of that risk in
estimating its allowance for credit losses, as well as changes in the allowance and the
reasons for those changes. The disclosures are to be presented at the level of disaggregation
that management uses when assessing and monitoring the portfolios risk and performance
(either by portfolio segment or by class of financing receivables). The required disclosures
include, among other things, a rollforward of the allowance for credit losses by portfolio
segment, as well as information about credit quality indicators and modified, impaired,
non-accrual, and past due loans. The disclosures related to period-end information is required
in all interim and annual reporting periods ending on or after December 15, 2010 (December 31,
2010 for the Bank). Disclosures of activity that occurs during a reporting period (e.g., loan
modifications and the rollforward of the allowance for credit losses by portfolio segment)
will be required in interim or annual periods beginning on or after December 15, 2010 (March
31, 2011 for the Bank). We adopted these requirements on December 31, 2010.
 In January 2010, the FASB issued Accounting Standards Update 2010-06, which amends ASC Topic
820 (Fair Value Measurements and Disclosures) to add new requirements for disclosures about
significant transfers into and out of Levels 1 and 2 and separate disclosures about purchases,
sales, issuances and settlements relating to Level 3 measurements. It also requires
disaggregation of fair value disclosures for each class of assets and liabilities and
disclosures about inputs and valuation techniques used to measure fair value. The guidance is
effective for the first reporting period (including interim periods) beginning after December
15, 2009, except for the requirement to provide Level 3 activity on a gross basis, which will
be effective for fiscal years beginning after December 15, 2010 (including interim periods).
In the period of initial adoption, entities are not required to provide the amended
disclosures for any previous periods presented for comparative purposes. We adopted these
requirements on January 1, 2010.
 In June 2009, the FASB issued ASC 810 (formerly Statement of Financial Accounting Standards
No. 167, Amendments to FASB Interpretation No. 46(R)), relating to the variable interest
entities (VIE). The objective of the guidance is to improve financial reporting by
enterprises involved with VIEs and to provide more relevant and reliable information to users
of financial statements. ASC 810 addresses the effects of eliminating the qualifying
special-purpose entity concept, changes the approach to determining the primary beneficiary
of a VIE and requires companies to
assess more frequently whether a VIE must be consolidated. These provisions also require
enhanced interim and year-end disclosures about the significant judgments and assumptions
considered in determining whether a VIE must be consolidated, the nature of restrictions on a
consolidated VIEs assets, the risks associated with a companys involvement with a VIE and
how that involvement affects the companys financial position, financial performance and cash
flows. This guidance is effective for fiscal years beginning after November 15, 2009 and for
interim periods within those fiscal years with early application prohibited. The adoption of
this guidance did not have a material impact on the consolidated financial statements.
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ORITANI FINANCIAL CORP. AND SUBSIDIARIES
  In June 2009, the FASB issued guidance which amends the derecognition guidance in topic 860,
Transfer and Servicing, to enhance reporting about transfers of financial assets, including
securitizations, and where companies having continuing exposure to the risks related to
transferred financial assets. The guidance eliminates the concept of qualifying
special-purpose entity, changes the requirements for derecognizing financial assets and
requires additional disclosures about all continuing involvements with transferred financial
assets including information about gains and losses resulting from transfers during the
period. This guidance is effective for financial asset transfers occurring in fiscal years
beginning after November 15, 2009. The adoption of this guidance did not have a material
impact on the consolidated financial statements.
 In 2008, the FASB issued Staff Position No. FAS 132(R)-1, Employers Disclosures about
Postretirement Benefit Plan Assets (ASC Topic 715-20-65). This guidance expands the
disclosure by requiring the following new disclosures: 1) how investment allocation decisions
are made by management; 2) major categories of plan assets; and 3) significant concentrations
of risk. Additionally, ASC 715-20-65 will require an employer to disclose information about
the valuation of plan assets similar to that required in ASC topic 820 Fair Value Measurements
and Disclosures. This guidance is effective for fiscal years beginning after December 15,
2009. The adoption did not have a material effect on the consolidated financial statements.
 23)
    
    Subsequent Events 
 On August 5, 2011, Standard and Poors lowered the United States of Americas long-term
sovereign credit rating from AAA to AA+. This downgrade could affect the stability and
value of residential mortgage-backed securities issued or guaranteed by government sponsored
enterprises (GSEs), though no negative impact has been noted through the date of this report.
These factors could affect the liquidity or valuation of our current portfolio of residential
mortgage-backed securities issued or guaranteed by GSEs, and could result in our
counterparties requiring additional collateral for our borrowings. Further, unless and until
the current United States political, credit and financial market conditions have been
sufficiently resolved, it may increase our future borrowing costs.
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Financial Statement Schedules
 None.(a)(3) Exhibits
 3.1
    
    
    Certificate of Incorporation of Oritani Financial Corp.*3.2
    
    
    Bylaws of Oritani Financial Corp.*4
    
    
    Form of Common Stock Certificate of Oritani Financial Corp.*10.1
    
    
    Employment Agreement between Oritani Financial Corp. and Kevin J. Lynch**, *****10.2
    
    
    Form of Employment Agreement between Oritani Financial Corp. and executive officers**, *****10.3
    
    
    Oritani Bank Director Retirement Plan**, *****10.4
    
    
    Oritani Bank Benefit Equalization Plan**, *****10.5
    
    
    Oritani Bank Executive Supplemental Retirement Income Agreement**, *****10.6
    
    
    Form of Employee Stock Ownership Plan**, *****10.7
    
    
    Director Deferred Fee Plan**, *****10.8
    
    
    Oritani Financial Corp. 2007 Equity Incentive Plan*, *****10.9
    
    
    Oritani Financial Corp. 2011 Equity Incentive Plan***, *****14
    
    
    Code of Ethics****21
    
    
    Subsidiaries of Registrant**23
    
    
    Consent of Independent Registered Public Accounting Firm31.1
    
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
    
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200232
    
    
    Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906
of the Sarbanes-Oxley Act of 2002
 
 *
    
    Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial
Corp. (file no. 333-165226), originally filed with the Securities and Exchange Commission on
March 5, 2010.**
    
    Incorporated by reference to the Registration Statement on Form S-1 of Oritani Financial
Corp. (file no. 333-137309), originally filed with the Securities and Exchange Commission on
September 14, 2006.***
    
    Incorporated by reference to the Companys Proxy Statement for the 2011 Special Meeting of
Stockholders filed with the Securities and Exchange Commission on June 27, 2011 (file No.
001-34786).****
    
    Available on our website www.oritani.com*****
    
    Management contract, compensatory plan or arrangement.  114




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SIGNATURES
  ORITANI FINANCIAL CORP.Date: September 12, 2011
    
    By:
    
    /s/ Kevin J. Lynch

Kevin J. LynchChief Executive Officer and President(Duly Authorized Representative)
  Signatures
    
    Title
    
    Date/s/ Kevin J. Lynch

Kevin J. Lynch
    
    Director, Chief Executive
Officer and President
(Principal Executive
Officer)
    
    September 12, 2011/s/ John M. Fields, Jr.

John M. Fields, Jr.
    
    Executive Vice President
and Chief Financial
Officer (Principal
Financial Officer)
    
    September 12, 2011/s/ Michael A. DeBernardi

Michael A. DeBernardi
    
    Director, Executive Vice
President and Chief
Operating Officer
    
    September 12, 2011/s/ Ann Marie Jetton

Ann Marie Jetton
    
    Vice President and
Principal Accounting
Officer
    
    September 12, 2011/s/ Nicholas Antonaccio

Nicholas Antonaccio
    
    Director
    
    September 12, 2011/s/ James J. Doyle, Jr.

James J. Doyle, Jr.
    
    Director
    
    September 12, 2011/s/ Robert S. Hekemian, Jr.

Robert S. Hekemian, Jr.
    
    Director
    
    September 12, 2011/s/ John J. Skelly, Jr.

John J. Skelly, Jr.
    
    Director
    
    September 12, 2011
  115